Title
Atlantic, Gulf and Pacific Co. of Manila, Inc. vs. Laguesma
Case
G.R. No. 96635
Decision Date
Aug 6, 1992
AG&P's project employees were regularized and included in URFA's bargaining unit under a CBA, rendering LAKAS-NFL's certification election petition moot due to the contract-bar rule.
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Case Digest (G.R. No. 96635)

Facts:

  1. Company Background:

    • Petitioner Atlantic, Gulf and Pacific Company of Manila, Inc. (AG&P) is engaged in construction and fabrication businesses. Its Steel and Marine Structures Group (SMSG) operates in Batangas, where it fabricates steel structures and heavy marine works.
    • AG&P hires project employees under Project Worker/Reliever Employment Agreements for specific projects with defined durations. Their employment terminates upon project completion unless rehired for unfinished projects.
  2. Collective Bargaining Agreement (CBA):

    • On June 8, 1990, AG&P executed a CBA with AG&P United Rank & File Association (URFA), the sole bargaining agent for regular rank-and-file employees. The CBA excluded project employees.
  3. Petition for Certification Election:

    • On June 29, 1990, Lakas ng Manggagawa sa AG&P-SMSG-National Federation of Labor (LAKAS-NFL) filed a petition for certification election to represent regular non-project employees at the SMSG site.
    • On September 25, 1990, the Med-Arbiter ordered a certification election among regular project employees.
  4. Regularization of Employees:

    • On October 26, 1990, AG&P regularized 691 project employees effective November 1, 1990.
    • A strike by remaining project employees led to an agreement on December 8, 1990, wherein AG&P agreed to regularize all project employees with at least one year of service.
    • On December 6, 1990, URFA informed AG&P that 410 regularized employees had joined URFA.
  5. Appeal and Motion for Reconsideration:

    • AG&P appealed the Med-Arbiter’s order, arguing that the contract-bar rule applied and that the bargaining unit LAKAS-NFL sought to represent no longer existed due to the regularization of employees.
    • The Department of Labor and Employment (DOLE) denied the appeal and motion for reconsideration.

Issue:

  1. Whether the contract-bar rule applies, preventing LAKAS-NFL from filing a petition for certification election due to the existence of a duly registered CBA between AG&P and URFA.
  2. Whether the regularization of project employees and their inclusion in URFA’s bargaining unit rendered the bargaining unit sought by LAKAS-NFL nonexistent.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)


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