G.R. No. L-48645 - Brotherhood Labor Unity Movement of the Philippines vs. Zamora

On July 11, 1969, the Brotherhood Labor Unity Movement (BLUM) filed with the now-defunct Court of Industrial Relations (CIR) a complaint against San Miguel Corporation (SMC) and several officers for unfair labor practice (RA 875, § 4(a)(1) & (4)) and illegal dismissal.
Respondents moved to dismiss, contending petitioners were not SMC employees but employees of an independent contractor.
After several postponements, the case transferred to the NLRC on September 8, 1975. On February 9, 1976, Labor Arbiter Lim ruled for petitioners; on June 28, 1976, the NLRC affirmed but limited backwages to one year’s salary. On June 1, 1977, the Secretary of Labor set aside the NLRC ruling, holding no employer-employee relationship.

From 1961, petitioners worked exclusively as “cargadores” (loaders/unloaders) at SMC’s Parola Glass Factory: issued gate passes by SMC, provided tools and equipment by SMC, paid piece-rate every ten days, no overtime or holiday pay. Work hours varied with production volume; sometimes exceeded eight hours and occurred on Sundays/holidays.
In January 1969, about 140 workers affiliated with BLUM and pressed for overtime pay, minimum-wage compliance, humane treatment and collective bargaining. After filing a strike notice (Feb 6) and dismissal of a member (Feb 12), SMC refused to bargain and, on February 20, dismissed all petitioners, barring their re-entry and replacing them with other workers.

Whether petitioners were SMC employees or employees of an independent labor contractor.

Whether the February 1969 dismissals constituted illegal dismissal and unfair labor practice for unionism.

Whether petitioners were entitled to reinstatement with backwages or separation pay.

Whether SMC’s refusal to bargain with BLUM was unlawful given an existing CBA with another union.