Title
Peter Paul Philippines Corp. vs. National Labor Relations Commission
Case
G.R. No. 103219
Decision Date
May 18, 1993
Company guards terminated due to PD 1919 claimed CBA rights to recommend substitutes; SC ruled exclusion from CBA, no vacancy, and laches barred claim.

Case Digest (G.R. No. 103219)
Expanded Legal Reasoning Model

Facts:

  • Background and Parties
    • Petitioner: Peter Paul Philippines Corporation.
    • Respondents:
      • National Labor Relations Commission (NLRC).
      • Private respondents: Norberto Villadiego, Romulo Garcia, Rolando Caringal, Restituto Conchela, Feliciano Aquino, and Virgilio Pabellano.
    • Employment Context:
      • The private respondents were employed by the petitioner as company guards.
      • Their employment was governed by a collective bargaining agreement (CBA) which contained specific provisions regarding vacancies and the right to recommend substitutes.
  • Relevant Legislative and Administrative Facts
    • Issuance of PD 1919 (April 28, 1984):
      • This Presidential Decree stipulated that no license shall be issued to any company guard force with less than thirty members.
      • As a result, the petitioner’s guard force, being below the required number, was disbanded.
    • Termination of Services:
      • On March 11, 1985, the petitioner terminated the services of the private respondents.
      • They were granted separation pay, which they accepted without protest.
  • Dispute Relating to the Collective Bargaining Agreement (CBA)
    • On June 15, 1989, the private respondents filed a complaint against the petitioner.
      • Their claim was based on the allegation that the petitioner did not allow them the right to recommend their substitutes.
      • This alleged right was derived from Article IV of the CBA regarding vacancy substitutions.
    • Key Provisions of the CBA on Vacancies:
      • Vacancies arising from the death, disability, or retirement of an eligible, regular employee under the retirement plan should on a trial basis be filled by a recommendee of the appropriate heir, subject to age and qualification criteria.
      • If no substitute is nominated within 30 days, the company reserves the exclusive right to appoint a substitute.
      • The substitution right was clearly tied to vacancies occurring by death, disability, or retirement.
  • Prior Judicial and Administrative Rulings
    • Labor Arbiter’s Decision (February 22, 1991):
      • Rendered in favor of the private respondents.
      • Required the petitioner to allow the respondents to recommend substitutes in line with the retirement plan.
      • Awarded attorney’s fees to the private respondents.
      • The decision leaned heavily on the precedent set in the Macasaet v. Peter Paul case.
    • NLRC and Appellate Actions:
      • The NLRC affirmed the Labor Arbiter’s decision.
      • The petitioner subsequently elevated the dispute to the Supreme Court, alleging grave abuse of discretion by the NLRC.
  • Arguments of the Parties
    • Petitioner’s Arguments:
      • The private respondents, being company guards, were explicitly excluded from the collective bargaining agreement as per Article I(A) of the CBA.
      • Their claim for the right to substitution was unfounded because there was no vacancy to fill – the positions were abolished, not vacated by retirement, death, or disability.
      • Even if the respondents were covered by the CBA, their claim was time-barred as they delayed asserting the right for more than four years.
      • The alleged company policy allowing substitution was merely a gesture of goodwill, not a vested legal right.
    • Private Respondents’ Arguments:
      • They contended that the determination of whether they were covered by the CBA was a factual question.
      • They maintained that the right of substitution was based on a company policy to which they had acquired a vested right.
      • They relied on the Macasaet case, arguing that the principles established therein applied to their situation.

Issues:

  • Coverage Under the Collective Bargaining Agreement
    • Whether the private respondents, employed as company guards, fall within the scope of employees covered by the CBA.
    • The interpretation of Article I(A) of the CBA that explicitly excludes certain categories, including security guards.
  • Application of the Substitution Right under the CBA
    • Whether the right to recommend a substitute, as provided in the CBA, is applicable when the position of employment is abolished rather than vacated due to death, disability, or retirement.
    • Whether the abolition of the positions due to PD 1919 can be analogized to a vacancy that triggers the substitution right.
  • Timeliness of the Private Respondents’ Claim
    • Whether the private respondents’ claim for substitution, filed more than four years after their separation, is barred by the prescription period under the Labor Code and/or the delay prescribed in the CBA (30-day nomination period).
  • Reliance on Precedent
    • Whether the cited Macasaet case is analogous and applicable in justifying the private respondents’ right to substitute, given the differing circumstances (retirement versus abolition of positions).

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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