Title
DOLE Philippines, Inc. vs. Pawis ng Makabayang Obrero
Case
G.R. No. 146650
Decision Date
Jan 13, 2003
Dole and PAMAO-NFL disputed CBA meal allowance: "after three hours" interpreted as exactly three, not more. SC upheld union's claim, enforcing CBA terms strictly.

Case Digest (G.R. No. 146650)
Expanded Legal Reasoning Model

Facts:

  • Background and Proceedings
    • A petition for review under Rule 45 was filed by Dole Philippines, Inc. against a Court of Appeals resolution.
    • The disputed issue originated from the interpretation of a provision in the 1996-2001 Collective Bargaining Agreement (CBA) concerning the free meal benefit for employees rendering overtime.
    • The case stemmed from a previous decision by a voluntary arbitrator, which had ruled in favor of granting free meals to employees who rendered exactly three hours of actual overtime work.
    • After the arbitrator’s decision, petitioner Dole sought reconsideration, which was denied, leading ultimately to the elevation of the case to the Court of Appeals and subsequently to the Supreme Court.
  • Disputed Provision of the Collective Bargaining Agreement
    • The specific provision under scrutiny is Section 3 of Article XVIII of the 1996-2001 CBA, which states:
"The COMPANY agrees to grant a MEAL ALLOWANCE of TEN PESOS (P10.00) to all employees who render at least TWO (2) hours or more of actual overtime work on a workday, and FREE MEALS, as presently practiced, not exceeding TWENTY FIVE PESOS (P25.00) after THREE (3) hours of actual overtime work."
  • The core controversy was the interpretation of the phrase "after three (3) hours of actual overtime work":
    • Petitioner Dole argued that it should be read as meaning "after more than three hours of actual overtime work."
    • Respondent (PAMAO-NFL) and the voluntary arbitrator contended that it meant employees were entitled to free meals upon rendering exactly, or no less than, three hours of overtime work.
  • Historical Context and Precedents
    • Past CBAs (the 1985-1988 CBA and the 1990-1995 CBA) contained a similar meal allowance provision without the term "more than":
      • The 1985-1988 CBA stated that free meals were given "after THREE (3) hours of actual overtime work."
      • The 1990-1995 CBA used identical language.
    • A subsequent amendment in the 1993-1995 CBA Supplement introduced the phrase "after more than three (3) hours of actual overtime work" but was later deleted in the 1996-2001 CBA, which reverted to the original wording.
    • Petitioner argued that its established practice for thirteen years was to grant the benefit only after more than three hours of overtime work, yet this practice was inconsistent with the contractual language across CBAs.
  • Employer vs. Employee Arguments
    • Petitioner Dole asserted its right as an employer to determine benefit policies under the principle of management prerogative.
    • Respondent labor union maintained that the express language of the CBA should govern, thereby entitling employees to free meals upon completing exactly three hours of overtime.
    • The Court examined the implications of the differing interpretations, noting that the absence of “more than” in the 1996-2001 CBA was significant and intentional.

Issues:

  • Interpretation of the CBA Provision
    • Whether the phrase "after three (3) hours of actual overtime work" in the 1996-2001 CBA should be interpreted to mean:
      • That an employee is entitled to a free meal only after rendering more than three hours of actual overtime work, as claimed by petitioner.
      • Or that an employee is entitled to a free meal when he has rendered exactly, or no less than, three hours of actual overtime work, as argued by respondent.
  • The Role of Past Practice and Amendments
    • Whether the historical practice over different CBAs and the amendment introduced in the 1993-1995 CBA Supplement should influence the interpretation of the current CBA provision.
    • The significance of the deletion of the phrase "more than" in the latest CBA and what that indicates regarding the parties’ intent.
  • Management Prerogative Versus Contractual Obligations
    • Whether the principle of management prerogative, which allows an employer to determine benefit conditions, can override the explicit provisions of the CBA.
    • The impact of the contractual agreement between the employer and employee union in limiting the exercise of management prerogative.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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