Court Orders Payment of Severance Awards to ex-SCC Employees

A Tema High Court on Tuesday ordered the payment of severance awards to 980 former employees of the State Construction Corporation (SCC), who were laid off following the closure of the company in 1998.

The courts ruling follows a submission by Mr Mames Abiaduka, counsel for the Divestiture Implementation Committee (DIC) that the directors have agreed in principle that this is a case where the DIC has no defence.

The former SCC workers, who were represented by Mr Justice E. K. Jones-Mensah, initiated the court case against the DIC and the Attorney-General for breach of contract for failing to pay them severance awards as stipulated in their Collective Bargaining Agreement (CBA).

Under the CBA, each employee of the defunct SIC was entitled to two months gross salary for each completed year as severance award.

The DIC, however, imposed a flat rate of 18 months pay on each employee irrespective of the length of service.

The workers said in their statement of claim that this unlawful imposition deprived them of if their rightful entitlements hence the court action to seek redress.

The court also awarded a cost of five million cedis against the DIC.