Industrial Court halts Caroni’s VSEP Plan

PRESIDENT of the Industrial Court Addison Khan yesterday granted an injunction against Caroni 1975 Ltd, after employees of the company filed a writ seeking an interim relief, after the company requested that its 8000 employees accept Voluntary Separation of Employment (VSEP).

The injunction was granted on the terms that Caroni Ltd be restrained from implementing or further implementing the VSEP Plan offered to its employees, that without prejudice Caroni will restrain itself — as of March 30 — from attempting to persuade its employees to participate in the VSEP plan whether by advertising in the newspaper or otherwise.
In addition Caroni will be expected to refrain from issuing any notices of acceptance to the employees or in any other manner conclude any agreement with any of the employees in relation to their voluntary separation from the company and from treating the employees as having terminated or agreeing to terminate their employment with the company. The injunction was granted until further order from the Industrial Court. Caroni was represented in the matter by Allan Alexander SC, Reginald Armour and Kerwin Garcia, while the All Trinidad Sugar and General Workers Trade Union was represented by Douglas Mendes, David Cowie and Ashvani Mahabir.

Mendes cited several legal arguments to support his case that the injunction be granted until after the hearing and determination of the Industrial Relations Offence on May 7. ATS&GWTU filed a complaint pursuant to section 84 of the Industrial Relations Act on March 13, which alleged that Caroni 1975 Ltd committed an industrial relations offence after they failed to recognise the majority union of the daily paid employees of the company. The union also claimed that the company failed to treat or enter into negotiations with the union for the purpose of a collective bargain, which was contrary to Section 40 of the Industrial Relations Act. However Alexander argued that the company did not contravene any Industrial Relations Act, since in their opinion, the company did not have to liaise with the union on a VSEP package. He said the granting of the injunction states that Caroni erred in some way by not discussing the package with the union, and “they are saying they did not”.

Khan in presenting his decision pointed out that he was unable to arrive at any determination on the merits of the respective cases. However he was of the opinion that there were serious issues to be tried, which included the status of a recognised majority union under the Act, whether as the recognised majority union, they are entitled to have the proposed VSEP plan negotiated between itself and the company and whether the company failed to meet and enter into negotiations in good faith or violated section 40 of the Act. He also pointed out that he believed that by not granting the injunction the workers would suffer irreparable damage. Following the decision President General of the ATS&GWTU Rudranath Indarsingh told reporters that the decision is an indication that justice is still alive in the country. He stated that the union and workers will continue to have faith and confidence in the due process of law and order and assured the workers that the union will continue to try to fulfil the mandate for all of its members.