THIRD DIVISION
G.R. No. 250839. September 14, 2022
PHILIPPINE BANK OF COMMUNICATIONS EMPLOYEES ASSOCIATION (PBCEA), Petitioner, v. PHILIPPINE BANK OF COMMUNICATIONS, Respondent.
D E C I S I O N
INTING, J.:
This resolves the Petition for Review on Certiorari1 under Rule 45 of the Rules of Court which seeks to annul and set aside the Decision2 dated October 18, 2019 of the Court of Appeals (CA) in CA-G.R. SP No. 155585. The CA modified the Decision3 dated April 20, 2018 of the Office of the Voluntary Arbitrator (OVA) in that it declared valid the new policy which herein respondent Philippine Bank of Communications (PBCom) unilaterally imposed relative to the granting of multi-purpose loans (loan program) to its employees.
REPAYMENTSince 2003, the loan program was incorporated in Section 2 of Article XVI of the Collective Bargaining Agreement (CBA) between PBCom and herein petitioner Philippine Bank of Communications Employees Association (PBCEA).8 The provision reads:
Fixed monthly amortization (principal plus interest) via semi-monthly payroll [sic] deduction. Repayment through pledges/deduction/s from Mid-year/Year-end bonuses shall be allowed. x x x.7chanRoblesvirtualLawlibrary
Section 2. The BANK shall maintain its existing loan program, i.e. Multi-Purpose Loan Program for employees.9 (Italics supplied)The same provision was carried over into the parties' succeeding CBAs and still remains in the present CBA.10chanRoblesvirtualLawlibrary
13. Repayment through pledges/deductions from Midyear/Year-end bonuses may be allowed. x x x11 (Emphasis supplied)In effect, the amendment gave PBCom the discretion whether to allow its employees to use their mid-year or year-end bonuses to pay for their loans. PBCEA opposed the amendment. Consequently, PBCom deferred the implementation of the new policy. However, despite several meetings and conferences between the parties, the issue remained unresolved. Hence, the new policy remained suspended.12chanRoblesvirtualLawlibrary
Repayment through pledges/deductions from Mid-year/ Yearend Bonuses shall be allowed, provided the employee has rendered five [5] years of continuous service with the Bank and the loan amortization cannot be accommodated by his Net Take Home Pay.13chanRoblesvirtualLawlibraryUnder the latest policy, employees whose net take home pay can accommodate the value of their loan amortization are not allowed to use their mid-year and year-end bonuses to pay for their loans.14chanRoblesvirtualLawlibrary
The material and relevant facts of the instant case are too clear to be missed. It is undisputed that the subject Bank policies involved in the two (2) issues at bench had been incorporated in the parties' CBA. As such, this Office agrees with [PBCEA] that the same cannot be changed, altered or modified without the consent of both contracting parties. To rule otherwise would be to encourage the parties to violate their duty to bargaining [sic] collectively, [as] expressly provided under Article 53 [sic] of the Labor Code, as amended, to wit:
chanroblesvirtuallawlibrary"ART. 253 Duty to bargain collectively when there exists a collective bargaining agreement. - When there is a collective bargaining agreement, the duty [sic] to bargain collectively shall also mean that neither party shall terminate nor modify such agreement during its lifetime. However, either party can serve a written notice to terminate or modify the agreement at least sixty (60) days prior to its expiration date. It shall be the duty of both parties to keep the status quo and to continue in full force and effect the terms and conditions of the existing agreement during the 60-day period and/or until a new agreement is reached by the parties.["]In the [sic] light of the foregoing, [PBCom's] argument that it did not violate the CBA when it validly exercised its management prerogative of disallowing the pledge of bonus as payment of the employees' provident-funded [sic] loans, is not meritorious. Neither can [PBCom] validly assert that, in the exercise of its management prerogative, it may set specific requirements should it allow the pledge of bonus as payment of the employees' provident-funded [sic] loans; nor amend the Service Award Policy to limit the recipients to qualified employees actually on board during the awarding ceremony every September 4 of every year, as a valid exercise of management prerogative, as the same will operate as an amendment to the existing CBA provisions without the consent of the other party, which is violative of the principle of [the] duty to bargaining [sic] collectively. For sure, [PBCom] is not precluded from proposing the same in the next CBA negotiations of the parties.
Likewise, this Office quotes with approval and found to be [sic] meritorious [PBCEA's] argument that an employer, as in the instant case, violates his duty to bargain collectively where he unilaterally alters or changes a term or condition of the employment maintained pursuant to an existing collecting [sic] bargaining agreement.22chanRoblesvirtualLawlibrary
The Petition for Review dated 04 May 2018 is PARTLY GRANTED. The assailed Decision dated 20 April 2018 is MODIFIED in that the amendment on the payment of loans through pledges/deductions from mid-year/year-end bonuses, subject to an employee's length of service and the amount of his Net Take Home Pay, is DECLARED a valid imposition. The declaration as void, of the requirement that employees should be on board on the date of PBCom's anniversary to be entitled to the Service Award, is SUSTAINED.Hence, PBCEA filed the instant petition to partially appeal the CA Decision that upheld the validity of PBCom's latest policy imposing an additional restriction before an employee could avail himself/herself of the multi-purpose loan.
IT IS SO ORDERED.24chanRoblesvirtualLawlibrary
REPAYMENTFurther, PBCEA emphasizes that starting 2003, the foregoing loan program was made part of the CBA in Section 2, Article XVI thereof, and that this provision was carried over in the succeeding CBAs up to the present. Therefore, PBCom cannot just unilaterally change the conditions surrounding the loan program to the prejudice of the employees without the consent of the union, lest it would violate the terms of the CBA.30chanRoblesvirtualLawlibrary
Fixed monthly amortization (principal plus interest) via semi-monthly payroll deduction. Repayment through pledges/deduction/s from Mid-year/Year-end bonuses shall be allowed. x x x29chanRoblesvirtualLawlibrary
Section 3. The State shall afford full protection to labor, local and overseas, organized and unorganized, and promote full employment and equality of employment opportunities for all.Likewise, the Labor Code declares the following policies of the State:
It shall guarantee the rights of all workers to self-organization, collective bargaining and negotiations, and peaceful concerted activities, including the right to strike in accordance with law. They shall be entitled to security of tenure, humane conditions of work, and a living wage. They shall also participate in policy and decision making processes affecting their rights and benefits as may be provided by law.
x x x x33chanRoblesvirtualLawlibrary
(a) To promote and emphasize the primacy of free collective bargaining and negotiations, including voluntary arbitration, mediation and conciliation, as modes of settling labor or industrial disputes;cralawlawlibraryFurther, Article 267 of the Labor Code, on exclusive bargaining representation and workers' participation in policy and decision-making, states:
x x x x
(d) To promote the enlightenment of workers concerning their rights and obligations as union members and as employees;cralawlawlibrary
x x x x
(g) To ensure the participation of workers in decision and policy-making processes affecting their rights, duties and welfare.34chanRoblesvirtualLawlibrary
ARTICLE 267. [255] Exclusive Bargaining Representation and Workers' Participation in Policy and Decision-Making. — x x xNotably, a CBA is a product of a constitutionally-guaranteed right to participate and is therefore the law between the parties.35 Hence, the parties are obliged to comply with its provisions.36chanRoblesvirtualLawlibrary
Any provision of law to the contrary notwithstanding, workers shall have the right, subject to such rules and regulations as the Secretary of Labor and Employment may promulgate, to participate in policy and decision-making process of the establishment where they are employed insofar as said processes will directly affect their rights, benefits and welfare. For this purpose, workers and employers may form labor-management councils: Provided, That the representatives of the workers in such labor management councils shall be elected by at least the majority of all employees in said establishment.
ARTICLE 264. [253] Duty to Bargain Collectively When There Exists a Collective Bargaining Agreement. — When there is a collective bargaining agreement, the duty to bargain collectively shall also mean that neither party shall terminate nor modify such agreement during its lifetime. x x x It shall be the duty of both parties to keep the status quo and to continue in full force and effect the terms and conditions of the existing agreement during the 60-day period and/or until a new agreement is reached by the parties.All told, PBCom's implementation of the latest policy on its loan program is a blatant disregard or circumvention of Article 264 of the Labor Code.47 Also, to uphold PBCom's defense that the new policy is a valid exercise of its management prerogative might set a precedent in giving the banks a license to unduly add, modify, or restrict the grant of loans beyond the terms of the CBA under the defense that such act is nothing more than imposing reasonable conditions affecting only the mode of payment of loans.
[I]n resolving issues concerning CBAs, We must not forget that the foremost consideration therein is upholding the intention of both parties as stated in the agreement itself, or based on their negotiations. Should it appear that a proposition or provision has clearly been rejected by one party, and said provision was ultimately not included in the signed CBA, then We should not simply disregard this fact. We are duty-bound to resolve the question presented, albeit on a different ground, so long as it is consistent with law and jurisprudence and, more importantly, does not ignore the intention of both parties. Otherwise, We would be substituting Our judgment in place of the will of the parties to the CBA.50chanRoblesvirtualLawlibraryTo emphasize, the terms and conditions of the CBA constitute the law between the parties. Hence, the parties are bound by it, provided that it is not contrary to law, morals, public order, or public policy.
Endnotes:
1 Rollo, pp. 3-14.
2 Id. at 24-43; penned by Associate Justice Walter S. Ong and concurred in by Associate Justices Ricardo R. Rosario (now a Member of the Court) and Zenaida T. Galapate-Laguilles.
3 A copy of the Decision dated April 20, 2018 was not appended to the rollo.
4 Net pay is defined as gross monthly compensation (basic plus cost of living allowance) less standard deduction (e.g. withholding tax, Social Security System premium, Medicare, Pag-IBIG contributions) and loan amortizations of external loans secured from the Pag-IBIG Fund, the Social Security System, and the National Home Mortgage Finance Corporation. Rollo, p. 26.
5 Rollo, pp. 25-26.
6 Id. at 26.
7 Id.
8 Id.
9 Id.
10 Id.
11 Id. at 27.
12 Id.
13 Id.
14 Id.
15 Id. at 28.
16 Id.
17 Id.
18 Section 2. The BANK shall improve the existing Service Awards, as follows:19 Id.
LENGTH OF SERVICE SERVICE AWARD 10 years P 6,250.00 15 years P 9,875.00 20 years P 13,500.00 25 years P 18,375.00 30 years P 22,250.00 35 years P26,125.00 40 years P 30,000.00
20 Id. at 29-30.
21 Id. at 30.
22 Id. at 30-31.
23 Id. at 24-43.
24 Id. at 42.
25 Land Bank of the Philippines v. Quilit, G.R. No. 194167, February 10, 2021, citing Carbonell v. Carbonell-Mendes, 762 Phil. 529, 536 (2015).
26 Id.
27 Bank of the Phil. Islands v. Bank of the Phil. Islands Employees Union-Metro Manila, 693 Phil. 82, 90 (2012).
28 See Republic v. Martinez, G.R. Nos. 224438-40, September 3, 2020.
29 Rollo, p. 10.
30 Id.
31 Id. at 51-62.
32 Id. at 55-60.
33 Section 3, Article XIII of the 1987 Constitution. See also Hongkong Bank Independent Labor Union (HBILU) v. Hongkong and Shanghai Banking Corp. Limited, infra note 49, at 837.
34 Article 218 of the Labor Code, as amended. See also Hongkong Bank Independent Labor Union (HBILU) v. Hongkong and Shanghai Banking Corp. Limited, infra note 49, at 837.
35 Hongkong Bank Independent Labor Union (HBILU) v. Hongkong and Shanghai Banking Corp. Limited, infra note 49, at 837-838.
36 Id.
37 Supreme Steel Corp. v. Nagkakaisang Manggagawa ng Supreme Independent Union (NMS-IND-APL), 662 Phil. 66, 86 (2011).
38 Id.
39 Id.
40 Rollo, p. 26.
41 Id.
42 Id. at 27.
43 Hongkong Bank Independent Labor Union (HBILU) v. Hongkong and Shanghai Banking Corp. Limited, infra note 49, at 838.
44 Id.
45 Hongkong Bank Independent Labor Union (HBILU) v. Hongkong and Shanghai Banking Corp. Limited, infra note 49, at 838-839.
46 Hongkong Bank Independent Labor Union (HBILU) v. Hongkong and Shanghai Banking Corp. Limited, infra note 49, at 839.
47 Id.
48 Hongkong Bank Independent Labor Union (HBILU) v. Hongkong and Shanghai Banking Corp. Limited, supra at 849.
49 826 Phil. 816 (2018).
50 Id. at 849-850.cralawredlibrary