Thursday, January 5, 2012

WICB to pay US$1.5M after losing latest arbitration matter with WIPA

The West Indies Cricket Board (WICB) will have to cough up in excess of US$1.5 million after losing its latest arbitration matter with the West Indies Players' Association (WIPA) last month.

WIPA president Dinanath Ramnarine made the disclosure during a press conference at WIPA's office on Edward Street, Port of Spain yesterday when he outlined the judgment of arbitrator, Senior Counsel Seenath Jairam, who ruled in WIPA's favour on December 7.

Ramnarine estimated that WIPA would get between US$1.5 to US$2 million in damages for the WICB's breeches of Article VI (Scheduling) of the memorandum of understanding (MOU) for the 2009/2010 annual schedule of cricket.

According to Ramnarine, both parties went to "binding arbitration" over the Article, which requires the parties to discuss and agree the annual schedule of cricket for regional and international matches, the number of games, dates, location/venues of matches, travel (flight and ground transport arrangements) and accommodation.

Ramnarine stressed the importance of the clause on "Minimum Standards" that the parties have agreed to which requires the WICB to ensure that the grounds, venues and facilities, including practice and medical facilities and security arrangements, meet the agreed standards.

"We have complained about players having to sleep on the floors of hotels, having to bathe by standpipes and purchasing of their own meals because of inadequate food provided to the players; having to play in sub-standard grounds, stay in hotels invested by rodents and sometimes play as many as seven matches without any practice facilities made available," the WIPA boss stated

"The Article makes it clear that the WICB has certain obligations to ensure that WIPA agrees with any changes it makes to the regional and the overseas programme of matches and that the rights of the players are not fettered, constrained or negatively affected," he added.

In his judgment SC Jairam stated: "It is my considered view that CBA (collective bargaining agreement) and MOU, in particular the provisions (Article VI) relied upon herein, create serious and binding obligations between both parties and they are not to be trifled with since a breach of them may cause serious (and sometimes irreparable) damage.

"The damages flowing from such a breach are a natural and foreseeable consequence--pacta sunt servanda (contracts are to be kept). In my view the provisions being relied upon by WIPA have been breached by the WICB and the damages flowing therefrom are a natural, probable and foreseeable consequence," Jairam ruled.

He ordered that the sum of US$728,000--representing loss of earnings by players for the regional four-day tournament (being US$1,300 per match x 5 matches x 112 players)--be paid to WIPA who will distribute to the players.

The 2009 four-day competition was played on a home and away basis with each team playing 12 matches, but that format was discontinued a year later with each team playing just six games.

The WICB also has to pay 40 per cent of the Board's earnings from the additional Twenty20 match in the home series against South Africa in 2010 and a sum equivalent of the usual fees paid to the players in Caribbean T20 matches.

Jairam also ordered the WICB to give a full account of all the revenue earned, including details of all commercial arrangements for the additional T20 match in the home series against South Africa in 2010, as well as the Caribbean T20 in July 2010.

WIPA will also receive US$100,000 for loss of sponsorship opportunity. WIPA will also be refunded costs (US$1,916) and will get nominal damages (US$10,000) for loss of income for WIPA T20, as well as US$114,320 representing its legal fees to date.

The WICB must also pay interest on the sums payable at the rate of 12 per cent per annum from the date of the award.

"We expect, in light of the WICB CEO's (Ernest Hilaire) request for mediation, that the WICB will now seek to engage WIPA to implement the ruling of the arbitrator and the provisions of the agreements signed by the parties and WIPA looks forward to resolving all matters through good faith discussions and mediation," Ramnarine concluded.

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