Title
Employees Union of Bayer Phils., FFW vs. Bayer Philippines, Inc.
Case
G.R. No. 162943
Decision Date
Dec 6, 2010
EUBP vs. Bayer: Intra-union conflict over CBA enforcement; Bayer found guilty of unfair labor practice for negotiating with splinter union, violating duty to bargain collectively.
A

Case Digest (G.R. No. 162943)

Facts:

  • Parties and Union Background
    • Petitioner: Employees Union of Bayer Philippines (EUBP), the exclusive bargaining agent of Bayer Philippines’ rank-and-file employees, affiliated with the Federation of Free Workers (FFW), led by President Juanito S. Facundo.
    • Respondents: Bayer Philippines, Dieter J. Lonishen (President), Asuncion Amistoso (HRD Manager), Avelina Remigio, and Anastacia Villareal.
    • In 1997, EUBP negotiated a collective bargaining agreement (CBA) with Bayer. A deadlock occurred after rejecting Bayer’s 9.9% wage increase proposal. This led to a strike and intervention by the Department of Labor and Employment (DOLE).
  • The 1997-2001 CBA and Intra-Union Conflict
    • In November 1997, Avelina Remigio and 27 other union members, unauthorized by EUBP leadership, accepted Bayer’s wage increase proposal. The EUBP grievance committee reprimanded them.
    • On January 7, 1998, the DOLE Secretary issued an arbitral award ordering execution of a CBA retroactive to January 1, 1997, effective until December 31, 2001, which was registered with DOLE on July 8, 1998.
    • By August 3, 1998, Remigio’s group, through a company-sponsored seminar, sought to:
      • Disaffiliate from FFW.
      • Rename the union as Reformed Employees Union of Bayer Philippines (REUBP).
      • Adopt new constitution and by-laws.
      • Abolish existing officers and elect new interim officers.
      • Authorize REUBP to administer the CBA.
    • This resolution was signed by 147 of 257 union members; a subsequent resolution affirmed these actions.
  • Recognition and Remittance Dispute
    • Both EUBP and REUBP claimed to be the rightful union, competing for recognition and union dues remittance.
    • Bayer refused to deal with either faction, placing collected union dues in a trust account pending conflict resolution.
    • EUBP filed a first unfair labor practice (ULP) complaint against Bayer on September 15, 1998, for non-remittance of dues.
    • Efforts for grievance conferences and mediation between groups were made but failed to resolve the conflict.
  • Subsequent Proceedings and ULP Complaints
    • Bayer later remitted P254,857.15 in union dues to REUBP Treasurer Anastacia Villareal despite ongoing disputes.
    • EUBP filed a complaint against Remigio’s group for acts threatening the union’s life; the Labor Arbiter dismissed the first ULP complaint for lack of jurisdiction, ruling the dispute as intra-union in nature. This dismissal was not appealed.
    • On December 14, 1999, petitioners filed a second ULP complaint against respondents charging Bayer and REUBP with unfair labor practice for organizing a company union, violating the CBA, and duty to bargain collectively.
    • Despite these complaints, Bayer signed a new CBA with REUBP on February 21, 2000, which was ratified by a majority of employees.
    • The Labor Arbiter dismissed the second ULP complaint citing lack of jurisdiction due to the intra-union nature of the dispute, a dismissal affirmed by NLRC and the Court of Appeals (CA).
  • Appeal to the Supreme Court
    • Petitioners filed a Rule 45 petition before the Supreme Court, challenging the jurisdictional rulings and asserting unfair labor practice on Bayer for dealing with REUBP despite an existing CBA with EUBP.
    • The principal dispute concerns whether Bayer’s negotiation with Remigio’s splinter group constitutes unfair labor practice.

Issues:

  • Whether the Court of Appeals correctly ruled on jurisdiction and merits regarding the unfair labor practice complaints.
  • Whether Bayer, Lonishen, and Amistoso committed unfair labor practice by negotiating and remitting union dues to Remigio’s splinter group despite an existing CBA with EUBP.
  • Whether the intra-union disputes between EUBP and REUBP fall within the jurisdiction of the Labor Arbiter and the NLRC.
  • Whether the case has become moot and academic due to the expiration of the 1997-2001 CBA and subsequent negotiations.
  • Whether respondents Remigio and Villareal can be held liable under the unfair labor practice complaint.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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