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NIGERIAN SEWING MACHINE MANUFACTURING COMPANY LTD. AND NATIONAL UNION OF SHOP AND DISTRIBUTIVE EMPLOYEES (NATIONAL INDUSTRIAL COURT) HON. JUSTICE (CHIEF) P.A. ATILADE PRESIDENT DR O.I. ODUMOSU MEMBER S.O. KOKU,ESQ. MEMBER DR. E.C. IWUJI MEMBER ALHAJI Z.M. BELLO MEMBER SUIT NO: NIC/14/78 DATE OF JUDGMENT WEDNESDAY, 24th JANUARY, 1979. LABOUR LAW Remuneration of staff - System of- Introduction of-Whether within a company's exclusive prerogative -Whether a matter which concerns terms and conditions of employment of workers - Whether trade union empowered to regulate by negotiation. LABOUR LAW Terms and conditions of employment - Imposition of on workers - Danger of. LABOUR LAW Wages and salaries review - Udoji Wages and Salaries Review in the public sector - Salaries review by a company in the private sector based on -Whether a privilege or a right. TRADE UNION LAW Trade union - Remuneration of staff - System of remuneration of staff - Introduction of - Whether trade union can regulate by negotiation. ISSUES Whether the Appellant was liable to payment of arrears of overtime based on the Udoji rate as from 1st April, 1974 to end of February, 1975. Whether the Appellant's decision to introduce the points system of remunerating Niles staff in replacement of the percentage commission was a matter of company policy over which the Appellant had exclusive prerogative. FACTS: There was a trade dispute between the Appellants and the defunct Singer Industries and Associated Workers' Union, which formed part of the National Union of Shop and Distributive Employees (the Respondent). The dispute involved three issues, namely: arrears of overtime based on Udoji rate as from 1st April, 1974; housing subsidy, and; reinstatement of percentage commission to sales staff with arrears from June, 1974. The Industrial Arbitration Panel (I. A.P) made an award on the dispute, inter alia., to wit: that arrears of overtime based on Udoji rate should be paid to the beneficiaries with effect from 1st April, 1974 instead of from 1st March, 1975, subject to approval by the Commissioner for Labour; that the Appellant should revert to percentage commission system with effect from the date the award was published by the Federal Commissioner for Labour. The Appellant raised objection to the Industrial Arbitration Panel's award in respect of those items and the dispute was transferred to the National Industrial Court. The Appellant contended that people who were not party to the Udoji review of salaries were claiming as if they had a right to the review whereas it was a mere privilege. It urged the court to take judicial notice of the fact that the Udoji Salaries Review Commission was set up only for the public sector, as there was no mention of the private sector in the Commission's Report. Furthermore, that it was only for the purpose of industrial peace and harmony that the private sector negotiated with the workers, to which the Respondent belonged. On the other issue of reversion to the percentage commission system of remunerating sales staff, the Appellant maintained that it was a matter of company policy over which the Appellant had exclusive prerogative, and not subject to negotiation with the workers. The Respondent on its part maintained that since the Appellant had accepted the government's directive in the White Paper on the Udoji Report to review wages and salaries in the Appellant's establishment, it was no longer a privilege but a right. On the other question of reversion to the percentage commission system of remunerating sales staff, the Respondent contended that the issue concerned the terms and conditions of employment of the workers, which a lawful trade Union was empowered to regulate by negotiation in accordance with Section 1 of the Trade Unions Decree No.31 of 1973. HELD: (Upholding the award of the IAP): 1. On Whether review of wages and salaries in the private sector following the Udoji Salaries Review is a privilege and not a right - A company which had agreed to a review of wages and salaries in the private sector following the Udoji Salaries Review in the public sector cannot contend that the review of wages and salaries in the private sector was a privilege and not a right. 2. On Whether introduction of a system of remuneration of staff is a matter of company policy over which it has exclusive prerogative rather than a matter, which a trade union is empowered to negotiate - Introduction of the points system of remunerating sales staff in replacement of the percentage commission is an issue that concerns the terms and conditions of employment of workers which a lawful trade union is empowered to regulate by negotiation in accordance with Section 1 of the Trade Unions Decree No.31 of 1973. 3. On Danger of allowing employers to impose terms and conditions of employment on their workers without negotiating with the workers' trade union - The whole structure of industrial relations in the country will break down the day employers are allowed to impose terms and conditions of employment on their workers who, notwithstanding the fact that they belong to lawfully registered trade union, are presumed barred from discussing or negotiating such matters with their employer because of some fanciful and archaic theory of exclusive management prerogative. HON. JUSTICE (CHIEF) P.A. ATILADE - PRESIDENT DR O.I. ODUMOSU - MEMBER S.O. KOKU,ESQ. - MEMBER DR. E.C. IWUJI - MEMBER ALHAJI Z.M. BELLO - MEMBER