Facts:

The case involves Kimberly-Clark Philippines, Inc. (KCPI) as the petitioner and Voluntary Arbitrator Danilo Lorredo along with the United Kimberly Clark Employees Union-PTGWO as respondents. The events leading to the case began when Danilo L. Guerrero, an employee of KCPI, voluntarily resigned on January 2, 1991, after serving the company for over thirteen years. Following his resignation, Guerrero, through the Union, recommended his nephew for employment as his replacement, citing Section 1, Article XX of their Collective Bargaining Agreement (CBA). This provision allows for the employment of an immediate family member or a collateral relative within the third civil degree upon the resignation, retirement, disability, or death of an employee. However, KCPI rejected the recommendation, arguing that Guerrero had legitimate children, thus disqualifying his nephew from being hired under the CBA. The Union contended that since Guerrero's children were minors, he could validly...

Facts:

1. Parties Involved:

   • Petitioner: Kimberly-Clark Philippines, Inc. (KCPI).
   • Respondents: Voluntary Arbitrator Danilo Lorredo and United Kimberly-Clark Employees Union-PTGWO.

2. Background of the Case:

   • Danilo L. Guerrero, an employee of KCPI, voluntarily resigned after 13 years and 3 months of service.
   • Under Section 1, Article XX of the Collective Bargaining Agreement (CBA), KCPI agreed to employ an immediate family member of a retiring, resigning, or deceased employee, provided they are qualified.
   • The CBA defines "immediate member of the family" as the employee's legitimate children or, in default thereof, a collateral relative within the third civil degree.

3. Dispute:

   • Guerrero recommended his nephew (a collateral relative within the third civil degree) for employment under the CBA.
   • KCPI rejected the recommendation, arguing that Guerrero has legitimate children (minors) and, therefore, cannot recommend a collateral relative.
   • The Union contended that since Guerrero's children are minors, he can validly recommend his nephew.

4. Procedural History:

   • The dispute was submitted to voluntary arbitration after the parties failed to resolve it through the grievance machinery.
   • Voluntary Arbitrator Danilo Lorredo ruled in favor of the Union, holding that Guerrero's nephew should be employed as his replacement under the CBA.
   • KCPI filed a motion for reconsideration, which was denied, prompting the filing of this petition for certiorari.

Issue:

• (Unlock)

Ruling:

• (Unlock)

Ratio:

1. Interpretation of Contracts:

   • A collective bargaining agreement, like any contract, is binding on the parties and must be interpreted in good faith.
   • The intention of the parties is paramount. If the terms are clear, their literal meaning controls. If not, the evident intention of the parties prevails.

2. CBA Provision:

   • The phrase "in default thereof" in the CBA does not mean that an employee must be childless to recommend a collateral relative. It merely establishes a hierarchy of preference.
   • The CBA allows the recommendation of a collateral relative within the third civil degree, even if the employee has legitimate children, as long as the recommendee is qualified.

3. Company's Safeguards:

   • The company is not obligated to unconditionally accept the recommendee. The recommendee must meet employment standards and is hired on a probationary basis, ensuring the company retains control over the hiring process.