Title
DORELCO Employees Union-ALU-TUCP vs. Don Orestes Romualdez Electric Cooperative, Inc.
Case
G.R. No. 240130
Decision Date
Mar 15, 2021
A union challenged a voluntary arbitrator’s ruling on employees’ salary adjustments, disputing the appeal period after quitclaims were signed. The Supreme Court clarified the appeal timeframe and remanded the case for merit resolution.

Case Digest (G.R. No. 151218)

Facts:

  • Background and Context
    • Parties Involved
      • Petitioner: DORELCO Employees Union-ALU-TUCP (Union)
      • Respondent: Don Orestes Romualdez Electric Cooperative, Inc. (Company)
    • Subject Matter
      • Dispute on the entitlement of rank-and-file employees to salary adjustments under the collective bargaining agreement (CBA)
      • Issues raised involved differing treatment of employees who either executed or refused to execute quitclaims upon retirement
  • Arbitration Proceedings
    • First Arbitration (2012)
      • Both the Union and the Company submitted for arbitration before the National Conciliation and Mediation Board (NCMB)
      • The NCMB voluntary arbitrator ruled in favor of the employees by granting salary increases for 2010 and 2011
      • Several employees had retired:
        • Pingol, et al. refused to sign quitclaims and later received retirement benefits with salary differentials
ii. Lumbre, et al. executed quitclaims, prompting a separate dispute on whether they could still claim the salary adjustments
  • Second Arbitration (2017)
    • The Union elevated the matter by submitting for arbitration whether Lumbre, et al. could claim salary adjustments despite having executed quitclaims
    • The voluntary arbitrator ruled against Lumbre, et al.
    • The Union filed a motion for reconsideration which was denied
    • The resolution denying the motion was issued on November 9, 2017, and its copy was received on November 27, 2017
  • Administrative and Appellate Proceedings
    • Elevation to the Court of Appeals (CA)
      • On December 12, 2017, the Union filed a petition for review under Rule 43, elevating the case to the CA
      • The CA dismissed the petition on procedural grounds, holding that the voluntary arbitrator’s decision became final and executory after 10 calendar days from receipt
    • Subsequent Actions
      • The Union sought further reconsideration at the CA, invoking pronouncements from previous cases such as Teng v. Pahagac
      • On May 21, 2018, the CA denied the motion for reconsideration, upholding the view that the appeal period was fixed at 10 days
  • Issue on the Appeal Period
    • Divergence in Interpretation of Timelines
      • The Union contended that the proper period to appeal should be 15 days from receipt of the denial of the motion for reconsideration
      • The Company argued that, as provided under Article 276 of the Labor Code and related DOLE rules, an appeal must be filed within 10 days from receipt of the decision
    • Conflict of Rules and Precedents
      • Rule 43 of the Rules of Court provides a 15-day period for filing appeals from judgments or final orders
      • Statutory provisions (Article 276 of the Labor Code) and administrative rules emphasize a 10-day period for the decision of the voluntary arbitrator to become final and executory

Issues:

  • Timeliness of the Appeal
    • Is the proper period to file an appeal from the voluntary arbitrator’s decision 10 days from notice as mandated by Article 276 of the Labor Code and related administrative guidelines?
    • Or, should the appeal period be considered as 15 days as provided under Rule 43 of the Rules of Court after the motion for reconsideration?
  • Sufficiency of the Exhaustion of Administrative Remedies
    • Whether the aggrieved party properly exhausted available administrative remedies by filing a motion for reconsideration before resorting to an appeal
    • Implications of not timely exhausting the administrative remedial process on the finality of the arbitrator’s decision
  • Reconciling Conflicting Reglementary Periods
    • How to harmonize the seemingly conflicting appeal periods (10-day vs. 15-day) given the various statutory and procedural rules
    • The broader impact on judicial intervention in labor disputes and the role of administrative agencies

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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