Title
San Miguel Corp. Employees Union vs. Confesor
Case
G.R. No. 111262
Decision Date
Sep 19, 1996
CBA renegotiation dispute between San Miguel Corp. and union over duration (2 vs. 3 years) and inclusion of spun-off entities' employees; SC upheld 3-year term and excluded spun-off employees.

Case Digest (G.R. No. 111262)

Facts:

This is San Miguel Corporation Employees Union‑PTGWO v. Hon. Ma. Nieves D. Confesor, G.R. No. 111262, September 19, 1996, First Division, Kapunan, J., writing for the Court. Petitioner is the San Miguel Corporation Employees Union‑PTGWO (SMCEU‑PTGWO), represented by its president Raymundo Hipolito, Jr.; respondents are Hon. Ma. Nieves D. Confesor, Secretary of Labor and Employment, and private respondents San Miguel Corporation (SMC), Magnolia Corporation (formerly Magnolia Plant) and San Miguel Foods, Inc. (SMFI) (formerly B‑MEG Plant).

On June 28, 1990 SMCEU and SMC executed a Collective Bargaining Agreement (CBA) effective upon expiration of the prior CBA (June 30, 1989). Article XIV of that CBA stated the agreement would remain in force until June 30, 1992, provided that the representation aspect shall be for five years (July 1, 1989 to June 30, 1994) under Art. 253‑A of the Labor Code, and that sixty days prior to June 30, 1992 either party might negotiate all provisions except representation. On August 13, 1991 SMC notified employees of a corporate restructuring; effective October 1, 1991 Magnolia and Feeds & Livestock Division (later SMFI) were spun off into separate corporations, but the CBA continued in force.

Renegotiations of the CBA began in July 1992. Petitioner insisted the bargaining unit still include employees who moved to Magnolia and SMFI and that renegotiated non‑representation terms be effective only for the remaining two years (to June 30, 1994). SMC maintained that employees who transferred to the spun‑off entities ceased to be part of the SMC bargaining unit and that the renegotiated terms should run three years under Art. 253‑A. Deadlock was declared September 29, 1992 and a Notice of Strike filed October 2, 1992. After a favorable strike vote on November 3, 1992, SMC, Magnolia and SMFI petitioned the Secretary of Labor to assume jurisdiction over a dispute in a vital industry; the Secretary assumed jurisdiction on November 10, 1992 and conducted conciliation.

Following position papers, the Secretary issued an Order dated February 15, 1993 directing that the renegotiated terms of the CBA be effective for three (3) years from June 30, 1992 and that the CBA cover only SMC employees, excluding employees of Magnolia and SMFI. Petitioner filed a petition for certiorari in the Court assailing that Order. On March 30, 1995 petitioner moved for a Temporary Restraining Order (TRO) or preliminary injunction to enjoin certification elections; the Court granted a TRO on March 29, 1995. The Samahan ng Malayang Manggagawa‑SMC‑Federation of Free Workers sought leave to intervene, citing Daniel S.L. Borbon ...(Pro-only)

Issues:

  • Whether the renegotiated non‑representation provisions of the CBA should be effective for three years or only for the remaining two years of the incumbent bargaining agent’s five‑year representation term.
  • Whether the bargaining unit of SMC continues to include the employees of Magnolia Corporation and San Miguel Foods, Inc. after the Oct...(Pro-only)

Ruling:

  • (Pro-only)

Ratio:

  • (Pro-only)

Doctrine:

  • (Pro-only)

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