Title
Continental Steel Manufacturing Corp. vs. Montano
Case
G.R. No. 182836
Decision Date
Oct 13, 2009
Employee entitled to bereavement leave, death benefits for unborn child's death under CBA; liberal interpretation favors worker.

Case Digest (G.R. No. 182836)
Expanded Legal Reasoning Model

Facts:

  • Parties and Collective Bargaining Agreement (CBA)
    • Continental Steel Manufacturing Corporation (Continental Steel) is the employer; Nagkakaisang Manggagawa ng Centro Steel Corporation-Solidarity of Unions in the Philippines for Empowerment and Reforms (Union) is the labor organization.
    • Rolando P. Hortillano (employee and Union member) filed on 9 January 2006 claims under the CBA for paternity leave, bereavement leave, and death and accident insurance.
  • Birth and death of the unborn child and grievance proceedings
    • On 5 January 2006, Mrs. Hortillano suffered a premature delivery in the 38th week; Certificate of Fetal Death (7 January 2006) attributed death to fetal anoxia secondary to uteroplacental insufficiency.
    • Continental Steel granted paternity leave but denied bereavement leave and death benefits (Article X, Sec. 2 and Article XVIII, Sec. 4.3 of the CBA).
    • The Union exhausted internal grievance steps, then filed a Notice to Arbitrate before the NCMB-DOLE NCR; by Submission Agreement (9 October 2006) the sole issue was entitlement to bereavement leave and death benefits for the unborn child’s death.
  • Arbitration and appeals
    • Accredited Voluntary Arbitrator Atty. Allan S. Montaño conducted conferences; parties submitted Position Papers, Replies, and Rejoinders.
    • By Resolution (20 November 2007), the Arbitrator ordered Continental Steel to pay Hortillano ₱4,939.00 (bereavement leave) and ₱11,550.00 (death benefits), finding the unborn child’s death qualified as the death of a legitimate dependent.
    • Continental Steel’s Petition for Review on Certiorari was denied by the Court of Appeals (Decision 27 February 2008; Resolution 9 May 2008), which affirmed the Arbitrator’s award.

Issues:

  • Whether the death of an unborn child, which has not acquired juridical personality, constitutes “death of a legitimate dependent” under Article X, Section 2 and Article XVIII, Section 4.3 of the CBA, entitling the employee to bereavement leave and death benefits.
  • Whether the CBA terms “death” and “dependent” must be interpreted in their strict legal sense—i.e., requiring juridical personality—thereby excluding fetal death from coverage.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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