In December 2003, as a result of strike action by the workers, the Defendant Company summarily dismissed all the unionized workers (numbering 500). Subsequently, the Defendants agreed in principle to reinstate the workers on condition that they all reapply for their positions.
In a Memorandum of Understanding signed between the mother union, management and Government, the Defendants undertook to:
- Re-employ about 350 workers, but without payment of bonuses for that year, and that salaries would only be payable from the date of re-employment;
- About 150 of the workers will be considered temporarily laid off but would be re-employed when the financial position of the company improves; and
- The re-employed workforce would be bonded to be of good behaviour for 6 months and would undertake to work together with the company to promote and maintain a peaceful and orderly industrial environment.
The Defendant company failed to honour the agreement. Instead, the Defendants embarked on a secret employment of new labour force from outside.
The case is before the Appeal Court.