The National Industrial Court, Lagos Division, has ordered Ecobank Nigeria Limited to pay N1, 086,611,589.11 to 1,742 ex-staff of Oceanic Bank who were denied their entitlements.
Justice R. A. Gwandu gave the order in a judgment in suit NIC/LA /231/2012 filed by the former employees of defunct Oceanic Bank, which merged with Ecobank Bank Limited in 2012.
Babajide Bayode, Yemisi Adesote, Adeboyejo Oladimeji, Seun Aina, Yusuf Kadiri, Segun Alasan, Adetayo Familugba and Lolade Olaribigbe sued for themselves and as representatives of 1,733 other ex-employees.
The representative action suit was filed by their counsel Mr Nwabu Okoye.
They sought “an order directing Ecobank Nigeria Limited to pay the outstanding sum of N1,146,470,393,.62 being the sum total of their savings in the Staff Savings Investment Trust Fund, SSITF, scheme contributed by 1742 ex-employees of Oceanic Bank made up of those transfered to Ecobank upon merger of the two banks through the merger of February 15, 2012, and those whose employment were determined before or upon the said merger which remain unpaid till date”.
The claimants said the amount outstanding as their contributions to the SSITF scheme, which the defendant (Ecobank) refused to pay to date, stands at N926,901,065,.60.
Justice Gwandu dismissed the bank’s counter-claim on the ground that it failed to put credible evidence before the court.
The judge held that upon the consummation of the merger, Ecobank fully acquired all the assets and liabilities of Oceanic Bank and could not repudiate or push some of the liabilities on its employees, more so when it was the bank that was in control of the SSITF scheme.
The judge held that Ecobank cannot deny that there were contributions to the SSITF or show evidence that the claimants were paid the sum they claim.
“I therefore, hold that the claimants have proved their case and are entitled to the payment of the sum of N926,901,065.60 being the sum total in the account of the Staff Savings Investment Trust Fund being contributions of 1,742 ex-employees of Oceanic Bank made up of those transferred to Ecobank upon the merger and whose contract of employment were determined on February 15, 2012 and those whose employment otherwise were determined before or upon the merger,” Justice Gwandu held.
On unpaid gratuities, the judge held: “I hold that the defendants are liable to the claimants in the sum of N159,710,523.51 being the total sum due on the basis of years of service of the employees.”
The claimants had also asked for an order directing Ecobank to pay the sum of N159,710,523.51, being the total sum due as gratuities to 48 of the claimants and another sum of N59, 858,804.51 being the short payments of severance or redundancy paid by the defendant to 74 of them.
The court was further asked to grant an order directing the bank to pay 22 per cent interest per annum on the sums of money being claimed from February 15, 2012, until judgment and thereafter at the rate of 12 per cent per annum until the liquidation of the judgment sum.
Ecobank through its lawyer, S.C. Arubike filed a statement of defense to the suit as well as counter-claim.
It demanded N967,529,765.38 being the excess of severance and or redundance benefits paid to the ex-staff of Oceanic Bank, at 24 per cent interest from October 30, 2014, until any judgment is delivered in its favour and interest of 10 per cent until fully liquidated.
Justice Gwandu refused the plaintiffs’ claim of N59,858,804.51 being the total sum of short payment of severance or redundancy package paid by Ecobank to 74 of the claimants.
The judge said it would be unfair for the court to hold Ecobank responsible for any lapses that may have occurred under the agreement brokered by ASSBIFI since some of the ex-staff benefitted under the agreement and are happy under the same agreement moreso the intervention of ASSBIFI had the consent of the ex-staff.
The court granted 10 per cent interest on the judgment sum from 30 days after the judgment was delivered till it was fully liquidated.
[TheNation]