x x x x
Sir, we are determined to keep our jobs and push the Hotel up from sinking. We believe that we have to help in this (sic) critical times. Initially, we intend to suspend the re-negotiations of our CBA. We could talk further on possible adjustments on economic benefits, the details of which we are hoping to discuss with you or any of your emissaries. x x x7
We would like to thank you for giving us the opportunity to meet [with] your representatives in order for us to air our sentiments and extend our helping hands for a possible reconsideration of the company's decision.
The talks have enabled us to initially come up with a suggestion of solving the high cost on payroll.
We propose that 25 years and above be paid their due retirement benefits and put their length of service to zero without loss of status of employment with a minimum hiring rate.
Thru this scheme, the company would be able to save a substantial amount and reduce greatly the payroll costs without affecting the finance of the families of the employees because they will still have a job from where they could get their income.
Moreover, we are also open to a possible reduction of some economic benefits as our gesture of sincere desire to help.
We are looking forward to a more fruitful round of talks in order to save the hotel.9
1) Suspension of [the] CBA for ten years, No strike no lock-out shall be enforced.
2) Pay all the employees their benefits due, and put the length of service to zero with a minimum hiring rate. Payment of benefits may be on a staggered basis or as available.
3) Night premium and holiday pays shall be according to law. Overtime hours rendered shall be offsetted as practiced.
4) Reduce the sick leaves and vacation leaves to 15 days/15days.
5) Emergency leave and birthday off are hereby waived.
6) Duty meal allowance is fixed at P30.00 only. No more midnight snacks and double meal allowance. The cook drinks be stopped as practiced.
7) We will shoulder 50% of the group health insurance and family medical allowance be reduced to 1,500.00 instead of 3,000.00.
8) The practice of bringing home our uniforms for laundry be continued.
9) Fixed manning shall be implemented, the rest of manpower requirements maybe sourced thru WAP and casual hiring. Manpower for fixed manning shall be 145 rank-and-file union members.
10) Union will cooperate fully on strict implementation of house rules in order to attain desired productivity and discipline. The union will not tolerate problem members.
11) The union in its desire to be of utmost service would adopt multi-tasking for the hotel to be more competitive.
It is understood that with the suspension of the CBA renegotiations, the same existing CBA shall be adopted and that all provisions therein shall remain enforced except for those mentioned in this proposal.
These proposals shall automatically supersede the affected provisions of the CBA.11
1) The persons who filed the instant complaint in the name of the Insular Hotel Employees Union-NFL have no authority to represent the Union;
2) The individuals who executed the special powers of attorney in favor of the person who filed the instant complaint have no standing to cause the filing of the instant complaint; and
3) The existence of an intra-union dispute renders the filing of the instant case premature.19
NATIONAL FEDERATION OF LABOR
And 79 Individual Employees, Union Members,Complainants,-versus-
Waterfront Insular Hotel Davao,Respondent.
x x x x
- Respondent must have been lost when it said that the individuals who executed the SPA have no standing to represent the union nor to assail the validity of Memorandum of Agreement (MOA). What is correct is that the individual complainants are not representing the union but filing the complaint through their appointed attorneys-in-fact to assert their individual rights as workers who are entitled to the benefits granted by law and stipulated in the collective bargaining agreement.23
The case was initiated by complainants by filling up Revised Form No. 1 of the NCMB duly furnishing respondent, copy of which is hereto attached as Annex "A" for reference and consideration of the Honorable Voluntary Arbitrator. There is no mention there of Insular Hotel Employees Union, but only National Federation of Labor (NFL). The one appearing at the Submission Agreement was only a matter of filling up the blanks particularly on the question there of Union; which was filled up with Insular Hotel Employees Union-NFL. There is nothing there that indicates that it is a complainant as the case is initiated by the individual workers and National Federation of Labor, not by the local union. The local union was not included as party-complainant considering that it was a party to the assailed MOA.27
Anent to the real complainant in this instant voluntary arbitration case, the respondent is correct when it raised objection to the National Federation of Labor (NFL) and as proper party-complainants.
The proper party-complainant is INSULAR HOTEL EMPLOYEES UNION-NFL, the recognized and incumbent bargaining agent of the rank-and-file employees of the respondent hotel. In the submission agreement of the parties dated August 29, 2002, the party complainant written is INSULAR HOTEL EMPLOYEES UNION-NFL and not the NATIONAL FEDERATION OF LABOR and 79 other members.
However, since the NFL is the mother federation of the local union, and signatory to the existing CBA, it can represent the union, the officers, the members or union and officers or members, as the case may be, in all stages of proceedings in courts or administrative bodies provided that the issue of the case will involve labor-management relationship like in the case at bar.
WHEREFORE, premises considered, the motion for reconsideration filed by respondent is DENIED. The resolution dated November 11, 2002 is modified in so far as the party-complainant is concerned; thus, instead of "National Federation of Labor and 79 individual employees, union members," shall be "Insular Hotel Employees Union-NFL et. al., as stated in the joint submission agreement dated August 29, 2002. Respondent is directed to comply with the decision of this Arbitrator dated November 11, 2002,
No further motion of the same nature shall be entertained.29
WHEREOF, in view of the all the foregoing, judgment is hereby rendered:
1. Declaring the Memorandum of Agreement in question as invalid as it is contrary to law and public policy;
2. Declaring that there is a diminution of the wages and other benefits of the Union members and officers under the said invalid MOA.
3. Ordering respondent management to immediately reinstate the workers wage rates and other benefits that they were receiving and enjoying before the signing of the invalid MOA;
4. Ordering the management respondent to pay attorney's fees in an amount equivalent to ten percent (10%) of whatever total amount that the workers union may receive representing individual wage differentials.
As to the other claims of the Union regarding diminution of other benefits, this accredited voluntary arbitrator is of the opinion that she has no authority to entertain, particularly as to the computation thereof.
SO ORDERED.38
WHEREFORE, premises considered, the petition for review in CA-G.R. SP No. 83657 is hereby GRANTED, while the petition in CA-G.R. SP No. 83831 is DENIED. Consequently, the assailed Decision dated April 5, 2004 rendered by AVA Rosalina L. Montejo is hereby REVERSED and a new one entered declaring the Memorandum of Agreement dated May 8, 2001 VALID and ENFORCEABLE. Parties are DIRECTED to comply with the terms and conditions thereof.
SO ORDERED.40
I.
WITH DUE RESPECT, THE HONORABLE COURT OF APPEALS COMMITTED SERIOUS ERRORS IN FINDING THAT THE ACCREDITED VOLUNTARY ARBITRATOR HAS NO JURISDICTION OVER THE CASE SIMPLY BECAUSE THE NOTICE OF MEDIATION DOES NOT MENTION THE NAME OF THE LOCAL UNION BUT ONLY THE AFFILIATE FEDERATION THEREBY DISREGARDING THE SUBMISSION AGREEMENT DULY SIGNED BY THE PARTIES AND THEIR LEGAL COUNSELS THAT MENTIONS THE NAME OF THE LOCAL UNION.II.
WITH DUE RESPECT, THE HONORABLE COURT OF APPEALS COMMITTED SERIOUS ERROR BY DISREGARDING THE PROVISIONS OF THE CBA SIMPLY BECAUSE IT BELIEVED THE UNPROVEN ALLEGATIONS OF RESPONDENT HOTEL THAT IT WAS SUFFERING FROM FINANCIAL CRISIS.III.
THE HONORABLE COURT OF APPEALS MUST HAVE SERIOUSLY ERRED IN CONCLUDING THAT ARTICLE 100 OF THE LABOR CODE APPLIES ONLY TO BENEFITS ENJOYED PRIOR TO THE ADOPTION OF THE LABOR CODE WHICH, IN EFFECT, ALLOWS THE DIMINUTION OF THE BENEFITS ENJOYED BY EMPLOYEES FROM ITS ADOPTION HENCEFORTH.42
x x x In the submission agreement of the parties dated August 29, 2002, the party complainant written is INSULAR HOTEL EMPLOYEES UNION-NFL and not the NATIONAL FEDERATION OF LABOR and 79 other members.49
WHEREFORE, premises considered, the motion for reconsideration filed by respondent is DENIED. The resolution dated November 11, 2002, is modified in so far as the party complainant is concerned, thus, instead of "National Federation of Labor and 79 individual employees, union members," shall be "Insular Hotel Employees Union-NFL et. al., as stated in the joint submission agreement dated August 29, 2002. Respondent is directed to comply with the decision of this Arbitrator dated November 11, 2002.50
Who may file a notice or declare a strike or lockout or request preventive mediation. -
Any certified or duly recognized bargaining representative may file a notice or declare a strike or request for preventive mediation in cases of bargaining deadlocks and unfair labor practices. The employer may file a notice or declare a lockout or request for preventive mediation in the same cases. In the absence of a certified or duly recognized bargaining representative, any legitimate labor organization in the establishment may file a notice, request preventive mediation or declare a strike, but only on grounds of unfair labor practice.
Applying the said doctrine to the instant case, the petitioner is in no way estopped by laches in assailing the jurisdiction of the RTC, considering that he raised the lack thereof in his appeal before the appellate court. At that time, no considerable period had yet elapsed for laches to attach. True, delay alone, though unreasonable, will not sustain the defense of "estoppel by laches" unless it further appears that the party, knowing his rights, has not sought to enforce them until the condition of the party pleading laches has in good faith become so changed that he cannot be restored to his former state, if the rights be then enforced, due to loss of evidence, change of title, intervention of equities, and other causes. In applying the principle of estoppel by laches in the exceptional case of Sibonghanoy, the Court therein considered the patent and revolting inequity and unfairness of having the judgment creditors go up their Calvary once more after more or less 15 years.The same, however, does not obtain in the instant case.
We note at this point that estoppel, being in the nature of a forfeiture, is not favored by law. It is to be applied rarely--only from necessity, and only in extraordinary circumstances. The doctrine must be applied with great care and the equity must be strong in its favor.When misapplied, the doctrine of estoppel may be a most effective weapon for the accomplishment of injustice. x x x (Italics supplied.)53
Respecting petitioners' thesis that unsettled grievances should be referred to voluntary arbitration as called for in the CBA, the same does not lie.The pertinent portion of the CBA reads:In case of any dispute arising from the interpretation or implementation of this Agreement or any matter affecting the relations of Labor and Management, the UNION and the COMPANY agree to exhaust all possibilities of conciliation through the grievance machinery. The committee shall resolve all problems submitted to it within fifteen (15) days after the problems ha[ve] been discussed by the members. If the dispute or grievance cannot be settled by the Committee, or if the committee failed to act on the matter within the period of fifteen (15) days herein stipulated, the UNION and the COMPANY agree to submit the issue to Voluntary Arbitration. Selection of the arbitrator shall be made within seven (7) days from the date of notification by the aggrieved party. The Arbitrator shall be selected by lottery from four (4) qualified individuals nominated by in equal numbers by both parties taken from the list of Arbitrators prepared by the National Conciliation and Mediation Board (NCMB). If the Company and the Union representatives within ten (10) days fail to agree on the Arbitrator, the NCMB shall name the Arbitrator. The decision of the Arbitrator shall be final and binding upon the parties. However, the Arbitrator shall not have the authority to change any provisions of the Agreement.The cost of arbitration shall be borne equally by the parties.
Petitioners have not, however, been duly authorized to represent the union. Apropos is this Court's pronouncement in Atlas Farms, Inc. v. National Labor Relations Commission, viz:x x x Pursuant to Article 260 of the Labor Code, the parties to a CBA shall name or designate their respective representatives to the grievance machinery and if the grievance is unsettled in that level, it shall automatically be referred to the voluntary arbitrators designated in advance by parties to a CBA. Consequently, only disputes involving the union and the company shall be referred to the grievance machinery or voluntary arbitrators. (Emphasis and underscoring supplied.)55
x x x A local union does not owe its existence to the federation with which it is affiliated. It is a separate and distinct voluntary association owing its creation to the will of its members. Mere affiliation does not divest the local union of its own personality, neither does it give the mother federation the license to act independently of the local union. It only gives rise to a contract of agency, where the former acts in representation of the latter. Hence, local unions are considered principals while the federation is deemed to be merely their agent. x x x57
Anent the first issue, We hold that the voluntary arbitrator had no jurisdiction over the case. Waterfront contents that the Notice of Mediation does not mention the name of the Union but merely referred to the National Federation of Labor (NFL) with which the Union is affiliated. In the subsequent pleadings, NFL's legal counsel even confirmed that the case was not filed by the union but by NFL and the individual employees named in the SPAs which were not even dated nor notarized.
Even granting that petitioner Union was affiliated with NFL, still the relationship between that of the local union and the labor federation or national union with which the former was affiliated is generally understood to be that of agency, where the local is the principal and the federation the agency. Being merely an agent of the local union, NFL should have presented its authority to file the Notice of Mediation. While We commend NFL's zealousness in protecting the rights of lowly workers, We cannot, however, allow it to go beyond what it is empowered to do.
As provided under the NCMB Manual of Procedures, only a certified or duly recognized bargaining representative and an employer may file a notice of mediation, declare a strike or lockout or request preventive mediation. The Collective Bargaining Agreement (CBA), on the other, recognizes that DIHFEU-NFL is the exclusive bargaining representative of all permanent employees. The inclusion of the word "NFL" after the name of the local union merely stresses that the local union is NFL's affiliate. It does not, however, mean that the local union cannot stand on its own. The local union owes its creation and continued existence to the will of its members and not to the federation to which it belongs. The spring cannot rise higher than its source, so to speak.58
A careful analysis of applicant's audited financial statements showed that during the period ending December 31, 1999, it registered retained earnings amounting to P8,661,260.00. Applicant's interim financial statements for the quarter ending June 30, 2000 cannot be considered, as the same was not audited. Accordingly, this Board finds that applicant is not qualified for exemption as a distressed establishment pursuant to the aforecited criteria.61
x x x We cannot close Our eyes to the impending financial distress that an employer may suffer should the terms of employment under the said CBA continue.
If indeed We are to tilt the balance of justice to labor, then We would be inclined to favor for the nonce petitioner Waterfront. To uphold the validity of the MOA would mean the continuance of the hotel's operation and financial viability. Otherwise, the eventual permanent closure of the hotel would only result to prejudice of the employees, as a consequence thereof, will necessarily lose their jobs.62
PROHIBITION AGAINST ELIMINATION OR DIMINUTION OF BENEFITS- Nothing in this Book shall be construed to eliminate or in any way diminish supplements, or other employee benefits being enjoyed at the time of the promulgation of this Code.
Clearly, the prohibition against elimination or diminution of benefits set out in Article 100 of the Labor Code is specifically concerned with benefits already enjoyed at the time of the promulgation of the Labor Code. Article 100 does not, in other words, purport to apply to situations arising after the promulgation date of the Labor Code x x x.66
A CBA is "a contract executed upon request of either the employer or the exclusive bargaining representative incorporating the agreement reached after negotiations with respect to wages, hours of work and all other terms and conditions of employment, including proposals for adjusting any grievances or questions arising under such agreement." The primary purpose of a CBA is the stabilization of labor-management relations in order to create a climate of a sound and stable industrial peace. In construing a CBA, the courts must be practical and realistic and give due consideration to the context in which it is negotiated and the purpose which it is intended to serve.
The assailed PAL-PALEA agreement was the result of voluntary collective bargaining negotiations undertaken in the light of the severe financial situation faced by the employer, with the peculiar and unique intention of not merely promoting industrial peace at PAL, but preventing the latter's closure. We find no conflict between said agreement and Article 253-A of the Labor Code. Article 253-A has a two-fold purpose. One is to promote industrial stability and predictability. Inasmuch as the agreement sought to promote industrial peace at PAL during its rehabilitation, said agreement satisfies the first purpose of Article 253-A. The other is to assign specific timetables wherein negotiations become a matter of right and requirement. Nothing in Article 253-A, prohibits the parties from waiving or suspending the mandatory timetables and agreeing on the remedies to enforce the same.
In the instant case, it was PALEA, as the exclusive bargaining agent of PAL's ground employees, that voluntarily entered into the CBA with PAL. It was also PALEA that voluntarily opted for the 10-year suspension of the CBA. Either case was the union's exercise of its right to collective bargaining. The right to free collective bargaining, after all, includes the right to suspend it.68
Under Article 231 of the Labor Code and Sec. 1, Rule IX, Book V of the Implementing Rules, the parties to a collective [bargaining] agreement are required to furnish copies of the appropriate Regional Office with accompanying proof of ratification by the majority of all the workers in a bargaining unit. This was not done in the case at bar. But we do not declare the 1984-1987 CBA invalid or void considering that the employees have enjoyed benefits from it. They cannot receive benefits under provisions favorable to them and later insist that the CBA is void simply because other provisions turn out not to the liking of certain employees. x x x. Moreover, the two CBAs prior to the 1984-1987 CBA were not also formally ratified, yet the employees are basing their present claims on these CBAs. It is iniquitous to receive benefits from a CBA and later on disclaim its validity.72
SECRETARY's CERTIFICATE
I, MA. SOCORRO LISETTE B. IBARRA, x x x, do hereby certify that, at a meeting of the Board of Directors of the DIHFEU-NFL, on 28 Feb. 2001 with a quorum duly constituted, the following resolutions were unanimously approved:RESOLVED, as it is hereby resolved that the Manifesto dated 25 Feb. 2001 be approved ratified and adopted;
RESOLVED, FURTHER, that Mr. Domy R. Rojas, the president of the DIHFEU-NFL, be hereby authorized to negotiate with Waterfront Insular Hotel Davao and to work for the latter's acceptance of the proposals contained in DIHFEU-NFL Manifesto; and
RESOLVED, FINALLY, that Mr. Domy R. Rojas is hereby authorized to sign any and all documents to implement, and carry into effect, his foregoing authority.75
Endnotes:
* Designated as an additional member in lieu of Associate Justice Antonio Eduardo B. Nachura per Special Order No. 883 dated September 1, 2010.
** Designated as an additional member in lieu of Associate Justice Jose Catral Mendoza per Special Order No. 886 dated September 1, 2010.
1 Rollo, pp. 7-63.
2 Penned by Associate Justice Rodrigo F. Lim, Jr., with Associate Justices Teresita Dy-Liacco Flores and Ramon R. Garcia concurring; id. at 66-82.
3 Id. at 84-85.
4 Rollo, pp. 86-96.
5 CA rollo, Vol. 1, p. 342.
6 Rollo, p. 558.
7 Id.
8 Id. at 559.
9 Id.
10 Id. at 560-561.
11 Id.
12 Id. at 562-563.
13 CA rollo, Vol. 1, pp. 362-364.
MANIFESTO
On behalf of all its members, the Davao Insular Hotel Free Employees' Union-National Federation of Labor (the "Union"), hereby declares:
WHEREAS, the Union recognizes and admits that the Davao Insular Hotel (the "Hotel"), in the sound exercise of its managerial prerogatives, has temporarily ceased its operations on December 7, 2000, due to substantial economic losses;
WHEREAS, the Union acknowledges that the heavy losses experienced by the Hotel were basically brought about by several factors, one of which is the huge payroll cost;
NOW, THEREFORE, to uplift and revive the Hotel's financial viability, and, thus encourage the Hotel to resume its operations, the Union hereby submits to the Hotel the following proposals:
A. RETIREMENT & REDUCED BENEFITS:
- Retirement. - The Hotel shall pay all employees qualified to retire their retirement benefits under the terms and conditions of the existing Collective Bargaining Agreement (CBA) and retrench those not yet qualified. Retired employees who may later on be rehired by the Hotel shall be considered as newly hired employees and are entitled to applicable existing minimum wage rates. As such, they hereby expressly waive any right that they may have with respect to their length of service.
- Overtime and Holiday Pay. - Night shift differential premium and holiday pay shall be paid in accordance with the provisions of the Labor Code. Offsetting of overtime shall be continued.
- Leaves. - Vacation and sick leave periods shall be limited to a maximum of ten (10) days each, while emergency and birthday leaves are hereby expressly waived.
- Duty Meal Privileges. - Meal allowance shall be reduced to P30.00 per duty. Midnight snacks, double meal allowance and cooks' drinks shall no longer be allowed.
- Corporate Group Healthcare Programs. - Only one (1) person shall be covered by the healthcare program. Family medical allowance shall be reduced to P1,500.00 per year.
- Uniforms Laundry. - The practice of bringing home employees' uniforms for washing shall be continued.
- Other Terms and Conditions. - The standards prescribed in the Labor Code of the Philippines shall be observed as regards all other terms and conditions of employment not specifically mentioned in this Manifesto.
B. RESTRUCTURE OF MANPOWER
- Hiring Procedure. - Within the first year of its re-opening, the Hotel shall rehire eighty (80 employees with regular status at the time of the Hotel's closure. After the first year of operations, if management should deem fit, ten (10) more employees with regular status at the time of closure may be rehired provided that the Hotel achieves an owner's profit (net profit) within the same period. In the event of increased owner's profits, the Hotel may again increase the number of its employees by rehiring employees presently with regular status. Notwithstanding the foregoing provisions, the Hotel may, in its discretion, fill up its other manning requirements in excess of the eighty (80) rehired employees from an independent recruitment agency.
- Salary Scale. - The Union hereby abandons the existing pay scale. Thus, the respective salaries of the eighty (80) rehired employees shall be in accordance with a new scheme to be devised by the Hotel.
C. MISCELLANEOUS
- Industrial Peace. - The Union agrees not to cause, conduct or support any form of strike within the next ten (10) years of the Hotel's operations. It likewise agrees to treat the present Collective Bargaining Agreement as inoperative within the same period insofar as the economic provisions are concerned. Upon the lapse of the above period, at which time the term of the Collective Bargaining Agreement shall be deemed to have lapsed, the parties may negotiate for a new Collective Bargaining Agreement.
- Disciplinary Committee. - The Hotel shall establish a disciplinary committee which will decide disciplinary cases involving violations of the Hotel's House Rules and Regulations. The committee shall be composed of eight persons, four (4) of whom shall be members of the management, while the remaining four (4) shall be members of the Union. The members of the committee shall choose a presiding officer among themselves. The findings of the committee shall be forwarded to the Human Relations Department Manager, who shall give his recommendations to the General Manager. The decision of the General Manager shall be final and immediately executory.
- Multi-Tasking and Multi-Skilled Employees. - Rehired employees shall be trained to perform multi-tasking jobs.
- Non-intervention of the Union. - The Union further undertakes not to intervene in any matter that is primarily within the exclusive discretion of the Hotel management, such as, but not limited to, the grant of business concessions within the Hotel.
14 CA rollo, Vol., pp. 366-371.
MEMORANDUM OF AGREEMENT
Know All Men By These Presents:
This Memorandum of Agreement, entered into this day of May 08 2001 at Cebu City, Philippines, by and between:
DAVAO INSULAR HOTEL, COMPANY, INC., a corporation duly organized and existing under the laws of the Philippines and doing business under the name and style: "Waterfront Insular Hotel Davao," hereinafter "Hotel";
-and-
DAVAO INSULAR HOTEL FREE EMPLOYEES' UNION-NATIONAL FEDERATION OF LABOR (DIHFEUNFL), the duly recognized exclusive bargaining agent among the rank-and-file employees of the Hotel; hereinafter the "Union"
W I T N E S S E T H :
WHEREAS, due to severe economic losses, the Hotel was constrained to temporarily cease operations on December 7, 2000.
WHEREAS, the Union acknowledges and admits that the closure of the Hotel was in accordance with the sound, valid, and good faith exercise of the Hotel's managerial prerogatives, and that the heavy business losses experienced by the Hotel were brought about by factors that actually exist, one which is the huge payroll cost;
WHEREAS, the parties recognize that a condition precedent to the Hotel's resumption of business operations is its ability to remain financially viable during the first ten (10) years following its resumption of operations;
WHEREAS, the parties acknowledge that the Hotel's financial viability can only be achieved by a comprehensive reorganization of its system of operations;
WHEREAS, on January 6, 2001, the economic provisions of the Collective Bargaining Agreement dated January 6, 1998 (hereinafter, the "CBA") between the Hotel and the Union are due for re-negotiation; WHEREAS, the Union, through a Manifesto dated February 24, 2001, in an effort to help the Hotel achieve financial viability for purposes of resuming its business operations and avoiding permanent closure, initiated the re-negotiation of the economic provisions of the CBA by offering reduced employee benefits;
NOW, THEREFORE, in view of the foregoing premises, the parties, pursuant to Section 2 of Article XXVI of the CBA, hereby agree to the following amendments to the CBA:
A. TENURE AND PRIORITY OF EMPLOYMENT (Article III)
The following shall be introduced as Sections 5, 6 and 7 under Article II of the CBA:
Section 5. Reduction of Personnel. - To help reduce the Hotel's payroll cost upon its resumption of operations, the parties hereby agrees to the retention of 100 rank-and file personnel with regular status at the time of the temporary closure of the hotel. Employees excluded by the parties may avail of their retirement benefits in accordance with the terms and conditions of Article XXIII of this Agreement.
Section 6. Multi-Tasking and Multi-Skilled Employees. - Retained employees shall be trained to perform multi-tasking jobs.
Section 7. Hiring Procedure. - Within the first year or resumption of its operations and provided that it achieves an owner's profit (net profit), the Hotel may, if management should deem fit, source its manpower requirements from among those excluded employees mentioned in the immediately preceding paragraph, or any qualified member/s of their immediate families in accordance with Section 4, Article III of the CBA. However, this provision shall not in any way preclude the Hotel, in the valid exercise of its management prerogative, from filling up its other manning requirements, in excess of the one hundred (100) retained employees, from an independent recruitment agency or elsewhere.
B. RIGHTS AND DUTIES (Article IV)
Sections 1 and 2a of Article IV of the CBA are hereby amended to read as follows:
Section 1. Industrial Peace - The Union agrees not to cause, conduct or support any form of strike within the next ten (10 years following the Hotel's resumption of operations.
Section 2a. Non-intervention of the Union - The Union further undertakes not to intervene in any matter that is primarily within the exclusive discretion of the Hotel management, such as, but not limited to, the grant of business concessions within the Hotel.
The following provisions are hereby incorporated as Sections 2b and 2c under Article IV of the CBA:
2b. Disciplinary Action - NO employee shall be subjected to disciplinary action without due process and without just cause.
2c. Disciplinary Committee - The Hotel shall establish a disciplinary committee that will decide disciplinary cases involving employees' violations of the Hotel's House Rules and regulations. The committee shall be composed of eight (8) members, four of whom shall represent management, while the remaining four shall be members-representatives of the Union. The members of the committee shall choose a presiding officer among themselves. The findings of the committee shall be forwarded to the Human Resources Department Manager, who shall give his recommendations to the General Manager, shall become immediately final and executory.
C. COMPENSATION (Article V)
Section 4 and Section 5 of Article V of the CBA are hereby amended as follows:
Section 4a. Salary Scale - The salary scale of the retired rank-and file employees shall be in accordance with a new compensation scheme to be determined by the Hotel, which shall in no case be less than the existing minimum rates prescribed by the Regional Tripartite Wages and Productivity Board.
Section 5. Duty Meals - Meal allowance for regular employee shall be Thirty Pesos (P30.00) per duty.
Sections 5a and 5b under Article V are hereby expressly repealed.
D. WORK SCHEDULE, OVERTIME, NIGHT DIFFERENTIAL (Article VI)
Sections 1a, 2, 2b, and 4 of Article VI are hereby amended to read as follows:
Section 1a. Additional Rates - Employees requested for duty during his day off shall be paid his rest day premium in accordance with the requirements of the provisions of the Labor Code.
Section 2. Overtime Work - Overtime premiums shall be determined in accordance with the requirements of the provisions of the Labor Code. Offsetting of overtime shall be continued.
Section 4. Nightshift Differential - Payment of night shift differential premium shall be in accordance with the requirements of the provisions of the Labor Code.
E. HEALTH BENEFITS (Article VIII)
Section 2 of Article VIII is hereby amended to read as follows:
Section 2. Medical Allowance - The employee shall charge the cost of medicine and/or medical assistance incurred by him up to the amount of P1,500.00 per year.
F. UNIFORM (Article IX)
The following provision shall be introduced under Article IX as Section 5:
Section 5. Uniforms Laundry - Laundry of uniforms shall be the sole responsibility of the employees and shall be done outside the Hotel premises.
G. VACATION LEAVE (Article XI)
Section 1 of Article XI are hereby amended to read as follows:
Section 1. Number of Days Vacation Leave - Employees who have rendered at least one year of continuous service shall be entitled to a vacation leave of ten (10) working days after each completed year of service.
Sections 1a and 1b are hereby repealed.
H. SICK LEAVE (Article XII)
Section 1a of Article XII is hereby amended to read as follows;
Section 1a. Number of Days Sick Leave - Employees shall be granted ten (10) working days sick leave with pay per year.
Unused sick leave at the end of each year shall be 100% convertible to cash.
I. EMERGENCY LEAVE (Article XXIII)
The following provisions shall be introduced as Section 6 under Article XXIII of the CBA:
Article XIII of the CBA on Emergency Leave is hereby expressly repealed.
x x x x
K. AMENDMENTS, DISSEMINATION, DURATION RENEWAL (Article XXVI)
Section 1 of Article XXVI of the CBA shall be amended to read as follows:
Section 1. Effectivity and Duration - This Agreement, as amended, shall be in full force and effect immediately upon its execution by the parties. The Union expressly waives its rights to renegotiate the wages and all other provisions contained in the Agreement, as amended, for a period of ten (10) years following the Hotel's resumption of operations.
The following provisions shall be introduced under Article XXVI of the CBA as Sections 5 and 6:
Section 5. Separability Clause - Should any of the above provisions be hereinafter declared invalid, the other provisions unaffected thereby shall continue to remain in full force and effect.
Section 6. Repealing Clause - All terms and conditions of the Agreement inconsistent with the foregoing provisions shall be deemed superseded and repealed by the provisions hereof.
IN WITNESS WHEREOF. The parties have hereunto affixed their signature this on the date and at the place mentioned above.
15 See rollo, pp. 596-770.
16 CA rollo, Vol. 1, pp. 110-111.
17 Id. at 112.
18 Id. at 113- 115.
19Id. at 113.
20 Rollo, p. 71.
21 CA rollo,Vol. 1, pp. 117-119.
22 Id. at 123-125.
23 Id. at 123. (Emphasis supplied).
24 Id. at 78-82.
25 Id. at 251-268.
26 Id. at 283-304.
27 Id. at 288.
28 Id. at 83-88.
29 Id. at 88.
30 Id. at 317-341.
31 Id. at 380-405.
32 Id. at 406-424.
33 CA rollo, Vol. 2, pp. 620-632.
34 Id. at 675.
35 Id. at 676-677.
36 Id. at 678.
37 CA rollo, Vol. 1, pp. 89-100.
38 Id. at 100.
39 Rollo, pp. 66-82.
40 Id. at 81.
41 Id. at 84-85.
42 Id. at 47-48.
43 Id. at 48.
44 Id. at 877-906.
45 See DOLE Certification dated November 16, 2006, id. at 551.
46 CA rollo, Vol. 1, pp. 110-111.
47 Id. at 112.
48 See Opposition to Motion to Withdraw, CA rollo, Vol. 1, id. at 123-125.
49 CA rollo, Vol. 1, p. 87.
50 Id. at 88.
51 Id. at 113- 115.
52 G.R. No. 147406, July 14, 2008, 558 SCRA 63.
53 Id. at 81-83.
54 G.R. No. 183335, December 23, 2009, 609 SCRA 223.
55 Id. at 231-232.
56 G.R. No. 157117, November 20, 2006, 507 SCRA 300.
57 Id. at 311-312. (Emphasis supplied.)
58 Rollo, pp. 77-78.
59 Id. at 551.
60nbsp; See rollo, pp. 25-26.
61 Id. at 25. (Emphasis supplied.)
62 Id. at 79.
63 CA rollo, Vol.1, pp. 343-355.
64 2001- P39,495,634.00
2002 - P32,845,995.00
2003 - P23,924,784.00
2004 - P 9,540,927.00
2005 - P 3,330,939.00
See Audited Financial Statements, rollo, pp. 567-594.
65 G.R. No. 86200, February 25, 1992, 206 SCRA 497.
66 Id. at 501.
67 425 Phil. 169 (2002).
68 Id. at 182-183. (Emphasis supplied.)
69 CA rollo, Vol. 1, p. 279.
70 See copies of Reconfirmation of Employment, rollo, pp. 596-770.
71 251 Phil. 310 (1989).
72 Id. at 322. (Emphasis supplied).
73 See Article VII, Section 1 of DIHFEU-NFL Constitution and By-Laws, CA rollo, Vol. 1, p. 271.
74 Rollo, p. 595.
75 Id. (Emphasis supplied).
76 Duncan Association of Detailman-PTGWO v. Glaxo Wellcome Philippines, Inc., 481 Phil. 687, 700 (2004).