Title
Esso Phil., Inc. vs. Malayang Manggagawa sa Esso
Case
G.R. No. L-36545
Decision Date
Jan 26, 1977
A labor dispute between Esso Philippines and union MME over a 1965 strike, involving reinstatement, backwages, and CBA validity, resolved by the Supreme Court in 1971.

Case Summary (G.R. No. L-36545)

Procedural Background

The petitioner sought a review of a resolution from the defunct Court of Industrial Relations issued on February 5, 1973, which overturned a prior order dated September 4, 1972. This earlier order had dismissed the MME's petition for the execution of the Supreme Court's decision in G.R. Nos. L-26386 and L-26355, which included provisions about employee reinstatement and the validity of collective bargaining agreements.

Historical Labor Disputes

The Supreme Court's previous decisions, specifically dated February 27, 1971, found specific rights and obligations concerning employee positions and benefits at Esso. The Industrial Court ordered the restoration of positions deemed redundant and the maintenance of certain employment conditions. This included allowing the company to close the can plant while ensuring that the positions of employees affected were managed with regard to existing rights and benefits based on previous agreements.

Challenges in Execution

Upon seeking the execution of the Supreme Court’s decision, the trial court outlined specific issues that had arisen due to the flawed segmentation of demands held in connection with contemporaneous labor disputes. Among these were demands for reinstatement, retention of meal allowances, and addressing employees who were prematurely retired.

Supreme Court's Input on Segregated Issues

The Supreme Court critiqued the separation of demands related to different cases, noting that the issues could not be dissected easily due to their interconnected nature. It emphasized that all claims should have been addressed comprehensively to avoid the complications arising from the reservation of certain matters for other cases pending in the Industrial Court.

Issues of Termination and Liability

The deliberation touched on the implications of the October 4, 1963 unlawful strike by the Citizens Labor Union (CLU), which was composed mostly of members who later formed MME. An order from the Court of Industrial Relations had previously declared the CLU members who participated in the strike as having lost their employment status. This situation warranted scrutiny regarding who remained entitled to relief and reinstatement, as the petitioner, Esso, argued against the reinstatement of MME members based on their prior affiliation with the CLU during the strike.

Validity of Collective Bargaining Agreements

Central to the dispute was the exploration of various collective bargaining agreements, specifically the one dated April 8, 1963, and subsequent agreements from 1968 and 1971 that purportedly amended employment conditions. The petitioner argued that since the latter agreements might have invalidated prior rights, reinstatement and the restoration of benefits should not apply to the MME members who were claimed to have lost their employee status through their involvement in the earlier actions.

Court's Resolution and Directives

The court affirmed the en banc resolution of the Industrial Court concerning the execution of the Supreme Court's orders. It mandated the immediate reinstatement of specific workers and the safeguarding of their backwages without prejudice to future determinations regarding the validity of the collective bargaining agreements. Employees who were prematurel

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