THE PROBLEM
On January 5, 2005, the Management of Arewa Textiles Plc unilaterally closed down the company without adherence to laid down procedures. Before the closure, workers salaries, allowances, gratuities and other entitlements of workers amounting to One billion, seventy five million, three hundred and ninety seven thousand, three hundred and ninety two Naira, sixty eight Kobo (N1,075,397,392.68) were not paid. Union dues and other levies running into several millions, which management deducted from workers salaries, were not remitted to the Union.
Prior to the closure, management on Monday April 14, 2003 unilaterally terminated the appointment of about 342 workers while 481 were summarily dismissed for protesting the non-payment of backlog of salaries owed them by the company. The union promptly condemned and frowned at this action of management and subsequently sent a protest to the management. In order to ensure a peaceful resolution of the impasse, the Union held several meetings with the Management of Arewa Textiles plc all to no avail. Due to the relentless pressure, management eventually called for a meeting of stakeholders (Stakeholders Forum of Arewa Textiles Plc.) on Monday July 26, 2004 comprising members of the Board of Directors including the late Vice Chairman of the Board, Chief P.S. Achimugu, management staff, senior staff Association and workers’ representative (NUTGTWN) to resolve the issue.
Several meetings of Management, Union, Labour Ministry and Security agencies were held and all agreements reached and signed were either turned down or not implemented by Arewa Textiles Plc. Management. Even before the closure, several meetings were held between Management, the Union, Workers and other bodies as indicated above, on ways to salvage the precarious state of the company, as it was clear that the company was in a very serious financial difficulties. To avert the closure, workers commendably accepted payment arrangement, which entails collection of only N10,000.00 and N4,000.00 for those that proceeded on unlimited compulsory leave while other allowances were deferred till further notice.
Inspite of these commendable sacrifices made by the workers and the union and the commitment of the workers to duties despite the hardship imposed on them and their dependants by non-payment of salaries, Management still went ahead to unilaterally close the factories without notice to either workers or the Union.
On Monday January 3, 2005, management sent notification letter of extension of closure for Christmas and New year break considering the state of insecurity, as already there are evidences of threats to life and property; that a new date of resumption would be communicated as soon as the Board of directors address the issue and other matters. The Union was surprised to have received such information, which was contrary to the agreement reached for two-thirds of workforce already on compulsory leave before the Christmas and new year break, and immediately proposed to meet with management on Friday January 7, 2005 for further discussion on the issues but the meeting could not hold because no management member was present.
Under this background, on Thursday February 3, 2005, the Union staged a protest rally at the gate of the company with Kaduna State Council of Nigeria Labour Congress (NLC) and other unions present in solidarity.
LEGAL ACTION
On Friday September 30, 2005, Union Bank Plc took over the company premises through its joint Receivers and subsequently advertised the company for sale. The Union swiftly joined the legal suit restraining the Receivers from selling the company without settlement of workers’ entitlements.
The Federal High court directed the Union to also advertise the company in New Nigeria and Vanguard News papers drawing the attention of interested buyers to beware of the company’s liability to workers and the union. The order was carried out accordingly.
At a hearing on January 19, 2006, Receivers requested for an out-of-court settlement with the Union, which the court granted and adjourned till February 28, 2006 for report of the terms of settlement. However both parties could not reach agreement.
In the course of Federal High Court proceeding, the trade dispute declared against Arewa Textile PLC in May 2004 came up for mention on 14th February 2006 and 25th April 2006. On the above dates, the Union had its memorandum prepared and submitted to the Industrial Arbitration Panel (IAP) and the court summoned the Receivers to appear before it and they did.
The Receivers having gone through the Union memorandum which prayed the IAP to have its member’s terminal benefits paid with union dues deducted, requested verification of the claims and details of individual computation of entitlements. The court granted this request and advised that the computerised individual benefits of members in the employment of the company with union dues should be submitted to the IAP on June 12, 2006.
At the resumed sitting, the Union intimated the Court that the details requested could only be possible if the Receivers could open the company for the Union representatives to access the staff files. The Receivers initially agreed to the request but later failed to open the company and staff records could not be accessed.
The court cases continue in the following sequence: Industrial Arbitration panel came up 19th September, 2nd November and 7th December 2006. The attention of the court was drawn to the persistent disobedience of the Receivers, for not allowing union access to the company premises for the verification of the workers entitlement as demanded by the Receivers themselves. While the court processes continued, the panel, however summoned the Receivers to appear and subsequently directed the parties to hold a reconciliation meeting and report the progress in the next adjourned date. The meeting was held and the Receivers agreed with us that they would provide new keys and padlocks to all gates and doors to Arewa Textiles Plc, which will make easy access of the Union to all necessary documents relative to those computations. The case was adjourned to 8th February 2007. The Federal High Court suit No. FHC/KD/CS/43/2005 was also adjourned to 21st March 2007 pending the outcome of the Industrial Arbitration Panel.
The Industrial Arbitration Panel (IAP) sitting in Abuja also ordered both Parties; Union Bank Plc and the NUTGTWN, to join forces to source a buyer for the company and bring the proceeds to the court for disbursement.
However, as soon as the information got to the company’s chairman he rushed to file a motion in the Federal High Court in Kaduna to stop the ruling of the IAP.
The Federal High Court (FHC) Kaduna on June 30, 2009 entered judgement in favour of the Union as per originating summons on behalf of the Union:
– That the workers are first in line and settlement of their entitlements must come before the debenture holders (the Union Bank).
– That the Receivers should pay the workers their outstanding salaries, allowances and benefits.
Since it was taken into account that the Receivers cannot renounce a contract entered into before their appointment, the judgement was entered on behalf of the plaintiff (Union). However, the workers benefits are yet to be settled as directed.
The union continued in her efforts to get the workers entitlements settled and possible reopening of Arewa Textiles Plc. We are pleased that some of our efforts have started yielding positive results.
LATEST
Union’s discussion with the management of Arewa Textile as represented by Dr. Nemile Achimugu (Daughter of the late Chief Achimugu) over their effort to reclaim the properties of the company from the receivers (Union Bank) and settle workers entitlements as well as reactivate the company for productive activities continues. On Wednesday 21st August, 2013 Dr. Nemile Achimugu called a meeting of the following:
- All Departmental Managers
- Supervisors
- Senior Staff Union Executives
- Junior Staff Union Executives
The attendance at this meeting was quite impressive. It was announced to the workers that the Management of Arewa has signed an agreement with the receiver (Union Bank) to reclaim their properties and all security documents with the bank within six months. The Management and the Bank officials will enter the premises within two weeks to jointly take inventory of what remains of the company after high level of vandalization that took place there.
Within these six months period, the company will settle its debts to the Bank and commence payment of workers’ entitlements. However, according to her, the company intends to go into massive garment production as negotiations with Bank of Industry has reached advanced stage. She further announced that Arewa will happily celebrate her 50 years of existence in the company by next year.
We are hopeful that with the ongoing effort and commitment of Dr. Nemile Achimugu, workers entitlements would be settled as soon as possible and Arewa Textiles plc brought back to operation. The union remains committed and willing to cooperate with the Board of Directors of Arewa Textiles with a view of ensuring the settlement of the outstanding benefits of the workers and revival of the company.
Chimezie Sylvester
Deputy General Secretary
