Title
Petrophil Corp. vs. Ople
Case
G.R. No. 56704
Decision Date
Dec 18, 1981
The Supreme Court approves a compromise agreement between Petrophil Corporation and Malayang Manggagawa sa Esso, settling their labor dispute and dismissing all related cases. The agreement upholds the validity of the termination of MME workers and the subsequent bargaining agreements.
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Case Digest (G.R. No. 56704)

Facts:

  • Case: "Petrophil Corp. vs. Ople" (G.R. No. 56704)
  • Date Decided: December 18, 1981
  • Court: First Division of the Supreme Court of the Philippines
  • Petitioner: Petrophil Corporation
  • Respondents: Hon. Blas Ople (Minister of Labor and Employment) and Malayang Manggagawa sa Esso (MME)
  • Background:
    • Originated from a labor dispute involving the termination of MME workers by Esso Standard Eastern, Inc. (now Petrophil Corporation) on December 8, 1967.
    • Several related cases were filed, including Case No. 64-IPA.
    • The Minister of Labor issued an order on March 16, 1981, for reinstatement of terminated workers and invalidated the 1968 and 1971 bargaining agreements, favoring the 1963 agreement.
    • Petrophil Corporation contested the order, claiming jurisdictional overreach and abuse of discretion by the Minister.
    • A compromise agreement was later reached and submitted to the Supreme Court for approval.

Issue:

  • (Unlock)

Ruling:

  • The Supreme Court approved the compromise agreement between Petrophil Corporation and Malayang Manggagawa sa Esso.
  • Dismissed all related cases, including G.R. No...(Unlock)

Ratio:

  • The compromise agreement was not contrary to law, public policy, or good morals.
  • Petrophil Corporation agreed to pay PHP 750,000 to the National Labor Relations Commission for distribution to affected employees, covering all claims arising from their employment or termination.
  • Both parties agreed to withdraw and dismiss all pending cases against each other.
  • The agreement ensured no prejudice to the employment status of any union member curren...continue reading

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