Case Digest (G.R. No. 211015)
Facts:
The case involves Cagayan Electric Power & Light Company, Inc. (CEPALCO) and CEPALCO Energy Services Corporation (CESCO), formerly known as CEPALCO Energy Services & Trading Corporation, as petitioners, and the CEPALCO Employee's Labor Union-Associated Labor Unions-Trade Union Congress of the Philippines (TUCP) as the respondent. The events leading to the case began on February 19, 2007, when CEPALCO and CESCO entered into a Contract for Meter Reading Work, wherein CESCO was tasked with performing CEPALCO's meter-reading activities. This arrangement led to the displacement of several CEPALCO employees, who were either relieved of their duties or assigned to floating positions, prompting the union to file a complaint for Unfair Labor Practice (ULP) against the petitioners, which was docketed as NLRC Case No. RAB-10-07-00408-2007. The union alleged that the contracting out of services was a deliberate attempt by CEPALCO to evade its responsibilities under the Co...
Case Digest (G.R. No. 211015)
Facts:
Background of Parties:
- CEPALCO: A domestic corporation engaged in electric distribution in Cagayan de Oro and Misamis Oriental.
- CESCO: A business entity engaged in trading and services, formerly known as CEPALCO Energy Services & Trading Corporation (CESTCO).
- Respondent Union: CEPALCO Employee’s Labor Union-Associated Labor Unions-Trade Union Congress of the Philippines (TUCP), the certified bargaining representative of CEPALCO’s regular rank-and-file employees.
First Contract (Meter Reading Work):
- On February 19, 2007, CEPALCO and CESCO entered into a Contract for Meter Reading Work effective March 1, 2007.
- CESCO undertook to perform CEPALCO’s meter-reading activities, resulting in the displacement of several CEPALCO employees and union members.
- The respondent union filed a complaint for Unfair Labor Practice (ULP) alleging that the contracting arrangement violated the Collective Bargaining Agreement (CBA) and labor laws, leading to the dissipation of union membership.
Second Contract (Warehousing Work):
- On January 5, 2010, CEPALCO and CESCO entered into another Contract of Service for warehousing works.
- Three union members from CEPALCO’s logistics department were replaced by CESCO workers, prompting another ULP complaint from the union.
Labor Tribunal Proceedings:
- The Labor Arbiter (LA) dismissed both complaints, ruling that CESCO was an independent contractor with substantial capital and equipment, and there was no ULP.
- The National Labor Relations Commission (NLRC) affirmed the LA’s decision.
- The Court of Appeals (CA) partially granted the union’s petition, finding that CESCO was a labor-only contractor, but absolved CEPALCO of ULP.
Issue:
- Whether CESCO was engaged in labor-only contracting in relation to CEPALCO.
- Whether CEPALCO committed Unfair Labor Practice (ULP) by contracting out services to CESCO.
- Whether the CA erred in declaring CESCO’s workers as regular employees of CEPALCO, despite the absence of ULP.
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)