Title
Kimberly-Clark , Inc. vs. Secretary of Labor
Case
G.R. No. 156668
Decision Date
Nov 23, 2007
A labor dispute over CBA expiration, certification election, and casual workers' regularization, culminating in Supreme Court rulings affirming regularization by law and extending benefits to all similarly situated employees.

Case Summary (G.R. No. 156668)

Background and Timeline

The Collective Bargaining Agreement (CBA) between Kimberly-Clark and the United Kimberly-Clark Employees Union-Philippine Transport and General Workers Organization (UKCEO-PTGWO) expired on June 30, 1986. A newly formed labor organization, KILUSAN-OLALIA, challenged the incumbent union by filing a petition for a certification election with the Ministry of Labor and Employment (MOLE) on April 21, 1986. After a certification election held on July 1, 1986, UKCEO-PTGWO won, but the result included a significant number of challenged ballots cast by casual workers seeking regularization. MOLE later issued an order recognizing some casual workers as regular employees.

Legal Proceedings

Upon the issuance of the MOLE order, KILUSAN-OLALIA filed a petition for certiorari (G.R. No. 77629) with the Supreme Court, challenging the validity of the order. Subsequently, Kimberly-Cark dismissed certain employees, leading KILUSAN-OLALIA to initiate a strike. The National Labor Relations Commission (NLRC) issued temporary restraining orders (TROs) in response to Kimberly’s injunction case. The Supreme Court consolidated G.R. Nos. 77629 and 78791, ultimately ruling on May 9, 1990, that recognized employees who had rendered over a year of service as regular employees and entitled them to various benefits.

Department of Labor and Employment Orders

Following the Supreme Court's decision, KILUSAN-OLALIA and several individual complainants sought execution of the ruling. On June 29, 2000, the DOLE deemed it moot and impossible to count the previously challenged ballots due to their loss; however, it directed the payment of differential wages to regularized workers, issuing a partial writ of execution for P576,510.57 in benefits based on prior entitlements.

Challenges to DOLE's Orders

Kimberly contested the DOLE’s orders, particularly arguing that they unlawfully recognized employees who had not completed a year of service by the time KILUSAN-OLALIA filed its petition for certification election. Kimberly filed a motion for reconsideration, which the DOLE denied on December 6, 2000, leading Kimberly to escalate the matter to the Court of Appeals under CA-G.R. SP No. 62257.

Court of Appeals Ruling

The Court of Appeals dismissed Kimberly's petition on June 27, 2002, affirming the DOLE's previous rulings. Kimberly’s motion for reconsideration was subsequently denied, prompting Kimberly to elevate the matter to the Supreme Court, alleging errors in the appellate court's interpretation of regularization criteria.

Supreme Court Analysis

In its analysis, the Supreme Court reiterated that employment regularization attaches to casual workers who serve for over a year, irresp

...continue reading

Analyze Cases Smarter, Faster
Jur is a legal research platform serving the Philippines with case digests and jurisprudence resources.