G.R. No. 218390 - Hongkong Bank Independent Labor Union vs. Hongkong and Shanghai Banking Corp. Limited

In 2001, the Bangko Sentral ng Pilipinas (BSP) issued the Manual of Regulations for Banks (MoRB), including Section X338, allowing banks to provide financial assistance to officers and employees as part of fringe benefits, subject to BSP approval of financing plans.
Respondent Hongkong and Shanghai Banking Corporation Limited (HSBC) submitted its Financial Assistance Plan (Plan) in 2003 to BSP, which included a credit checking provision considering repayment defaults and adverse information on outside loans in loan evaluations. BSP approved the Plan and its subsequent amendments.

Petitioner Hongkong Bank Independent Labor Union (HBILU) represented HSBC rank-and-file employees; they entered a CBA from April 2010 to March 2012 with Article XI covering salary loans, detailing loan types, amounts, interest rates, and a credit ratio policy as a condition.
During negotiations for the 2012-2017 CBA, HSBC proposed amendments aligning CBA loan provisions with its BSP-approved Plan, including explicitly stating that loan availment is subject to employee's credit ratio and removing a credit ratio section.
HBILU objected, asserting the new conditions curtailed members’ loan rights and violated BSP Circular 423 and MoRB Section X338.3. HSBC withdrew its proposed amendments, leaving Article XI unchanged.

Despite withdrawal, in April 2012 HSBC notified employees by email of strict enforcement of credit checking under the Plan, including adverse findings and external credit checks affecting loan approvals.
HBILU member Vince Mananghaya’s March 2012 loan was approved; however, his September 2012 loan application was denied due to adverse external credit check findings.
HBILU filed a grievance claiming the external credit checking was not sanctioned under the CBA and was unilaterally imposed by HSBC. HSBC justified the requirement as mandatory under the BSP-approved Plan and banking regulations.
The grievance was brought before the National Conciliation Mediation Board (NCMB) and to arbitration by a Panel of Accredited Voluntary Arbitrators (the Panel).

The Panel ruled in favor of HSBC, holding that the employer may implement loan guidelines as part of management prerogative, and the references to “qualified employees” presupposed further guidelines such as credit checking. It declared that the BSP-approved Plan must be read with Article XI of the CBA as compliance with BSP regulations is obligatory.
The CA affirmed the Panel’s decision, reasoning that HSBC was bound to enforce the BSP-approved Plan, and the Plan is deemed incorporated into the CBA as regulatory requirement preventing the CBA loan provisions from being inoperative.

HBILU challenged the rulings, arguing they violated procedural due process in collective bargaining, lacked proof that the Plan was presented to or agreed upon by employees, amounted to unilateral amendment of the CBA, and diminished employee benefits without lawful basis.
HSBC maintained the Plan and its credit checking provision had long existed since 2003, was consistent with BSP regulations and banking practice, and that the Plan’s requirements should prevail despite not being explicitly mentioned in the CBA.

Whether HSBC validly enforced the external credit checking requirement under its BSP-approved Financial Assistance Plan as a condition for salary loan applications of employees covered by the CBA, despite the credit check requirement not being expressly provided for in the CBA.
Whether the unilateral imposition of the external credit check requirement violates the parties’ duty to bargain collectively and the provisions of Article XI of the CBA.
Whether the external credit checking requirement for salary loans is mandated under the BSP regulations or the General Banking Law considering the fringe benefit classification of these loans.