Ex-CEO of Caroni Green Ltd, Sharma Lalla is suing the state-owned company and Government for $1.5 million, claiming that his three-year contract of employment was breached as it pertains to monies owed to him.
Documents to this effect were filed in the Hall of Justice last Thursday by attorneys Ragiv Chaitoo and Larry Lalla. The action was filed against CGL and the Attorney General.
Prime Minister Dr Keith Rowley, during the post-Cabinet news conference on March 16, said that Caroni Green and the Government Human Resource Service Ltd would be among the small state enterprises to be shut down.
He said Government has been assessing the performance of state enterprises and had received reports that some of them had passed the point of usefulness, some were “losing their way” and others were grossly under-performing. One or two were absorbing money and not contributing much. The government announced the closure of the Tourism Development Corporation in February.
Lalla is claiming CGL operated as a state agency and the state is jointly liable for damages due to him for alleged breach of contract.
Lalla claimed he had a three-year contract from August 17, 2015 at a gross salary of $45,000 per month, including vehicle bonus. He claimed CGL was entitled to terminate the contract at any time and for any reason without notice upon the payment of 12 months’ gross salary and benefits plus gratuity.
After statements by Government officials on CGL’s closure, Lalla claimed the new board chairman told CGL monthly-paid staff in April, all provisions of their employment contracts will be honoured.
However despite assurances, Lalla received an April 19, 2017 letter from the new chairman stating CGL would cease operations that day and he would be paid $196,566.67. On April 19, 77 employees of Caroni Green, comprising 63 farm workers and 14 monthly paid staff, received retrenchment letters at the company’s Brechin Castle, Couva office.
Lalla claimed he was also advised his salary and ex-gratia payments would be paid by April 20, 2017.
But Lalla claimed the offer of $196,566.67 was in breach of his contract which required CGL to pay him $1.5m for various matters - including salary from April 2017, vacation leave and other aspects - on termination of contract.
He maintains CGL is liable to pay him this under the contract. Lalla sent CGL a pre-action protocol letter on April 24. He received responses in May, denying the claim, but is pursuing it legally now.
In an interview with the Guardian on April 19, Caroni Green chairman, Jerry Hospedales, said payments totalling close to $2 million would be made to the retrenched workers, comprising a cash alternative to their vacation leave, 45 days service in lieu of their notice and a fortnightly pay based on the calculations under the Retrenchment and Severance Benefits Act.
Hospedales also told the Guardian in April that 22 employees would be kept on staff—three employees to assist in the liquidation and finalising the closure and 19 employees to man the Mon Jaloux and Union East estates from April 20 until the Ministry of Agriculture provided further instructions.
The 19 farm employees were being kept on to ensure that the existing crops were not lost, amid reports from employees that the company has close to a year’s supply of hot peppers and papaya for export.
