The National Industrial Court, Lagos Division, has ordered Ecobank Nigeria Limited to pay the sum of N1,086,611,589.11 to 1,742 former employees of the defunct Oceanic Bank.
The ex-employees were allegedly denied their rightful entitlements following the merger of Oceanic Bank with Ecobank in 2012.
Justice R. A. Gwandu delivered the judgment in Suit No. NIC/LA/231/2012, filed by the ex-employees through their counsel, Mr Nwabu Okoye.
Some of the ex-employees are Mr Babajide Bayode, Yemisi Adesote, Adeboyejo Oladimeji, Seun Aina, Yusuf Kadiri, Segun Alasan, Adetayo Familugba and Lolade Olaribigbe, who sued for themselves and as representatives of 1,733 other ex-employees of Oceanic Bank now Ecobank Nigeria Limited.
The plaintiffs sought several orders, including the payment of their contributions to the Staff Savings Investment Trust Fund, unpaid gratuities, and short payments of severance benefits.
According to the claimants, the total outstanding contributions to the SSITF amounted to N926,901,065.60.
The plaintiffs also demanded N159,710,523.51 as gratuities for 48 claimants and N59,858,804.51 for short payments of severance or redundancy benefits to 74 others.
The court was further asked to grant an order directing Ecobank to pay 22 per cent interest per annum on the aforesaid 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, represented by its counsel, S.C. Arubike, had filed a counter-claim, seeking to recover N967,529,765.38, which it described as excess severance and redundancy payments, along with interest.
The bank also claimed that N225,724,076.78 was allegedly overpaid gratuities and N1,541,491,955.03 for outstanding credit facilities.
But Justice Gwandu entered judgment in favour of the ex-employees.
He held: “Upon the consummation of the merger, Ecobank assumed all assets and liabilities of Oceanic Bank. The bank cannot repudiate or push some of these liabilities, especially regarding the SSITF scheme, which it controlled.”
Dismissing Ecobank’s counter-claim, Justice Gwandu said, “The bank failed to present credible evidence to support its claims. Ecobank is liable for the sum of N926,901,065.60 as contributions to the SSITF by 1,742 ex-employees of Oceanic Bank.”
The judge further ruled in favour of the plaintiffs regarding unpaid gratuities, ordering Ecobank to pay N159,710,523.51.
However, the claim for N59,858,804.51 as short payments of severance benefits was denied.
Justice Gwandu explained, “It would be unfair to hold Ecobank responsible for lapses under the agreement brokered by ASSBIFI, as some ex-staff benefited from it.”
The court also granted a 10 per cent interest on the judgment sum, starting 30 days after the judgment until the amount is fully liquidated.