Philippine Supreme Court Jurisprudence


Philippine Supreme Court Jurisprudence > Year 1993 > June 1993 Decisions > G.R. No. 97835 June 14, 1993 - FIRST GENERAL MARKETING CORPORATION, ET AL. v. NATIONAL LABOR RELATIONS COMMISSION:




PHILIPPINE SUPREME COURT DECISIONS

FIRST DIVISION

[G.R. No. 97835. June 14, 1993.]

FIRST GENERAL MARKETING CORPORATION and/or JOSE UY, Petitioners, v. NATIONAL LABOR RELATIONS COMMISSION (FIRST DIVISION), ADELAIDA SAN MIGUEL, MARY ESCALADA, ANECITA DIZON, LUZ CHAN, JHUN REFORMA, SALVACION NOBLEFRANCA, VICKY DONAIRE, MARITES REPIL, LOURDES BATUIGAS, REBECCA PICORRO, MARIETTA ESCOBIO, GLORIA PARDE, MERLINA OLIET, LEONY NOLASCO, MARILYN ALBIOS AND ERLINDA LAVILLA, Respondents.

Gerardo S. Alansalon in the opinion of the Court.

Banzuela, Flores, Miralles, Raneses, Sy, Taquio & Associates for Private Respondents.


SYLLABUS


1. LABOR LAW AND SOCIAL LEGISLATION; MERGER AGREEMENT; MAY COMPEL EMPLOYER TO RESPECT PERMANENT STATUS OF EMPLOYMENT. — Merger agreement compelled the respondents, FGMC and Uy, to respect the permanent status of the complainants. They could not be dismissed without cause. The seasonal demand of respondents for workers was not a lawful cause to dismiss the complainants who have always been considered permanent, rather than seasonal, workers at Paramount. The respondents were directed to reinstate then to their former positions with full back wages. Jose Uy signed the agreement as President and General Manager of both Paramount Gloves Phils. Inc. and FGMC. Therefore, he is estopped from disclaiming any liability under it. The probationary employment contracts which the private respondents were made to sign on May 23, 1988, a week after the execution of the merger agreement on March 16, 1988, violated the terms of the merger agreement and the employees’ right to security of tenure.


D E C I S I O N


GRIÑO-AQUINO, J.:


This petition for certiorari seeks to review the decision dated November 22, 1990 of the respondent, National Labor Relations Commission (NLRC), in NLRC NCR Case No. 00-12-05131-88 which reversed the decision dated August 7, 1989 of the Labor Arbiter.chanrobles.com : virtual law library

Jose Uy owned and controlled three (3) garment companies, namely Paramount Gloves Phils., Inc., State Garment Company, and First General Marketing Corporation (FGMC). In March, 1988, the Paramount and FGMC were merged to enable Uy to meet the rising volume of purchase orders and export demands.

By agreement dated March 16, 1988 between Jose Uy and ANGLO (Alliance of Nationalist and Genuine Labor Organizations), the workers of Paramount were absorbed by FGMC. The private respondents, who were regular cutters at Paramount, were assigned as "temporary trimmers" in FGMC’s finishing section. Later, Uy asked them to sign probationary contracts with FGMC either as sewers or cutters, to exclude them from the new company’s bargaining unit.

On November 21, 1988, they were discharged without notice. On December 15, 1988, they filed a complaint against FGMC and Uy for illegal dismissal (NLRC NCR Case No. 00-12-05131-88).

On August 7, 1989, Labor Arbiter Donato Quinto rendered a decision dismissing the complaint on the ground that when the complainants were required to work with respondent FGMC as temporary trimmers, they knew that their hiring was seasonal in character, hence, it could not ripen into permanent or regular employment.chanrobles.com : virtual law library

On appeal to the NLRC, the Commission on November 22, 1990, reversed the Labor Arbiter. It held that the merger agreement compelled the respondents, FGMC and Uy, to respect the permanent status of the complainants. They could not be dismissed without cause. The seasonal demand of respondents for workers was not a lawful cause to dismiss the complainants who have always been considered permanent, rather than seasonal, workers at Paramount. The respondents were directed to reinstate then to their former positions with full back wages.chanrobles virtual lawlibrary

FGMC and/or Jose Uy filed the present petition for certiorari with a prayer for the issuance of a preliminary injunction, to restrain the enforcement and/or implementation of the questioned NLRC decision and its resolutions. The petition alleged that:chanrob1es virtual 1aw library

1. there was neither testimonial nor documentary evidence proving the private respondent’s allegation of illegal dismissal; and

2. there was no violation of their right to due process.

Furthermore, Uy had already sold all his share holdings in FGMC two months before the contracts of the private respondents expired, hence, he had no privity with FGMC at the time the private respondents were terminated.chanrobles virtualawlibrary chanrobles.com:chanrobles.com.ph

The petition has no merit.

The agreement between Jose Uy and ANGLO dated March 16, 1988 clearly stated that:jgc:chanrobles.com.ph

"Seksyon 1. Na ang kumpanya at ang Unyon ay nagkasundo na ang mga Manggagawa sa Tri-Star na ang mga pangalan ay nakalakip sa kasunduang ito at lahat ng manggagawa ng PARAMOUNT GLOVES PHILS., INC. ay sasaklawin at mapapasailalim bilang mga regular na Manggagawa sa FIRST GENERAL MARKETING at kasapi ng Unyon sa ilalim ng ANGLO. (Interpretation: That the company and the union agree that the workers of Tri-Star whose names are attached to this agreement and all workers of PARAMOUNT GLOVES PHILS., INC. will be covered and will fall under regular employees of FIRST GENERAL MARKETING and members of the union under ANGLO.)

"Seksyon 2. Benepisyo — Lahat ng mga benepisyo na matatanggap ng mga Manggagawa sa kanikaniyang dating Pabrika ay ipagpapatuloy at ang mga benepisyo na nakuha sa CBA ng FIRST GENERAL MARKETING ay ibibigay, at tatamasahin ng mga Manggagawa na masasaklaw." (All of the benefits to be received by the workers from their respective companies shall continue and the benefits derived from the CBA of FIRST GENERAL MARKETING shall be given and enjoyed by the covered workers — translation ours.)

Jose Uy signed the agreement as President and General Manager of both Paramount Gloves Phils. Inc. and FGMC. Therefore, he is estopped from disclaiming any liability under it. The probationary employment contracts which the private respondents were made to sign on May 23, 1988, a week after the execution of the merger agreement on March 16, 1988, violated the terms of the merger agreement and the employees’ right to security of tenure.

WHEREFORE, finding no grave abuse of discretion in the decision of the National Labor Relations Commission, the petition for certiorari is DISMISSED. Costs against the petitioners.

SO ORDERED.

Cruz, Bellosillo and Quiason, JJ., concur.




Back to Home | Back to Main




















chanrobles.com





ChanRobles On-Line Bar Review

ChanRobles Internet Bar Review : www.chanroblesbar.com

ChanRobles MCLE On-line

ChanRobles Lawnet Inc. - ChanRobles MCLE On-line : www.chanroblesmcleonline.com






June-1993 Jurisprudence                 

  • G.R. Nos. 70310-11 June 1, 1993 - MASSIVE CONSTRUCTION, INC., ET AL. v. INTERMEDIATE APPELLATE COURT, ET AL.

  • G.R. Nos. 71998-99 June 2, 1991

    EMILIANO R. DE LOS SANTOS, ET AL. v. INTERMEDIATE APPELLATE COURT, ET AL.

  • G.R. No. 99866 June 2, 1993 - PEOPLE OF THE PHIL. v. SIDRO D. DORO

  • G.R. No. 105005 June 2, 1993 - PEOPLE OF THE PHIL. v. JUANITA A. MARCELO

  • A.M. No. MTJ-90-460 June 3, 1993 - COURT ADMINISTRATOR v. OSMUNDO M. VILLANUEVA, ET AL.

  • G.R. No. 93511 June 3, 1993 - CORAZON L. CABAGNOT v. CIVIL SERVICE COMMISSION, ET AL.

  • G.R. Nos. 97309-10 June 3, 1993 - PEOPLE OF THE PHIL. v. ERNESTO QUEJADA

  • G.R. No. 97426 June 3, 1993 - PEOPLE OF THE PHIL. v. ROMEO APOLINARIO, ET AL.

  • G.R. No. 97931 June 3, 1993 - PEOPLE OF THE PHIL. v. ERNESTO MENDOZA, ET AL.

  • G.R. No. 105285 June 3, 1993 - PEOPLE OF THE PHIL. v. RENATO D. FIDER

  • G.R. No. 105884 June 3, 1993 - SOCIAL SECURITY SYSTEM v. COURT OF APPEALS, ET AL.

  • G.R. No. 74298 June 4, 1993 - PEOPLE OF THE PHIL. v. ROLANDO PATELLAR SACRISTAN, ET AL.

  • G.R. No. 88246 June 4, 1993 - LA CAMPANA FOOD PRODUCTS, INC. v. COURT OF APPEALS, ET AL.

  • G.R. No. 97457 June 4, 1993 - PEOPLE OF THE PHIL. v. TITO CABALLERO, ET AL.

  • G.R. No. 100290 June 4, 1993 - NORBERTO TIBAJIA, JR., ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 100606 June 4, 1993 - PEOPLE OF THE PHIL. v. JOEMI BALACIO, ET AL.

  • G.R. Nos. 101216-18 June 4, 1993 - PEOPLE OF THE PHIL. v. REDENTOR D. DICHOSO, ET AL.

  • G.R. No. 83902 June 8, 1993 - PEOPLE OF THE PHIL. v. ARCADIO MANRIQUE, JR., ET AL.

  • G.R. No. 84921 June 8, 1993 - PEOPLE OF THE PHIL. v. ROLANDO DURAL, ET AL.

  • G.R. No. 88291 June 8, 1993 - ERNESTO M. MACEDA v. CATALINO MACARAIG, JR.

  • G.R. No. 96354 June 8, 1993 - LAPERAL DEVELOPMENT CORPORATION, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 98177 June 8, 1993 - BARFEL DEVELOPMENT CORPORATION, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 101292 June 8, 1993 - RICARDO ENCARNACION v. COURT OF APPEALS, ET AL.

  • G.R. Nos. 102773-77 June 8, 1993 - PEOPLE OF THE PHIL. v. GODOFREDO SAYAT

  • G.R. No. 103631 June 8, 1993 - PEOPLE OF THE PHIL. v. FELIPE C. RAMOS

  • G.R. No. 106621 June 8, 1993 - PSBA MANILA v. NATIONAL LABOR RELATIONS COMMISSION, ET AL.

  • G.R. No. 95357 June 9, 1993 - PEOPLE OF THE PHIL. v. EDUARDO GELAVER

  • G.R. No. 57828 June 14, 1993 - SEA-LAND SERVICE, INC. v. COURT OF APPEALS, ET AL.

  • G.R. No. 94630 June 14, 1993 - SALOME ROSENDO RIVAS v. COURT OF APPEALS, ET AL.

  • G.R. No. 95539 June 14, 1993 - PEOPLE OF THE PHIL. v. MELCHOR B. DATINGGINOO

  • G.R. No. 97835 June 14, 1993 - FIRST GENERAL MARKETING CORPORATION, ET AL. v. NATIONAL LABOR RELATIONS COMMISSION

  • G.R. No. 100641 June 14, 1993 - FARLE P. ALMODIEL v. NATIONAL LABOR RELATIONS COMMISSION, ET AL.

  • G.R. No. 108957 June 14, 1993 - PRUDENTIAL BANK v. COURT OF APPEALS, ET AL.

  • A.M. No. P-92-709 June 14, 1993 - ROGER A. DOMAGAS v. DELIA MALANA

  • G.R. Nos. 94709-10 June 15, 1993 - PEOPLE OF THE PHIL. v. RUBEN CABARRUBIAS, ET AL.

  • G.R. No. 106037 June 15, 1993 - RICARDO C. ROA, ET AL. v. PH CREDIT CORPORATION, ET AL.

  • B.M. No. 553 June 17, 1993 - MAURICIO C. ULEP v. LEGAL CLINIC, INC.

  • A.M. No. MTJ-88-142 June 17, 1993 - ERLINDA A. MENDOZA v. RODOLFO A. MABUTAS

  • A.M. No. P-92-673 June 17, 1993 - LUMEN POLICARPIO, ET AL. v. GALLARDO TOLENTINO, ET AL.

  • A.M. No. 3694 June 17, 1993 - ALBERTO FERNANDEZ, ET AL. v. BENJAMIN M. GRECIA

  • G.R. No. 88445 June 17, 1993 - JESUS KHO v. COURT OF APPEALS, ET AL.

  • G.R. No. 92492 June 17, 1993 - THELMA VDA. DE CANILANG v. COURT OF APPEALS, ET AL.

  • G.R. No. 101730 June 17, 1993 - PHILIPPINE TELEGRAPH AND TELEPHONE CORPORATION v. BIENVENIDO E. LAGUESMA, ET AL.

  • G.R. No. 106011 June 17, 1993 - TOWN SAVINGS AND LOAN BANK, INC. v. COURT OF APPEALS, ET AL.

  • G.R. No. 106374 June 17, 1993 - PHILIPPINE AIRLINES, INC. v. NATIONAL LABOR RELATIONS COMMISSION, ET AL.

  • G.R. No. 106973 June 17, 1993 - MARIA L. LOPEZ v. NORTHWEST AIRLINES, INC., ET AL.

  • G.R. No. 108000 June 17, 1993 - PEOPLE OF THE PHIL. v. COURT OF APPEALS, ET AL.

  • A.M. No. RTJ-91-657 June 21, 1993 - LOURDES PRESADO v. MANUEL C. GENOVA

  • G.R. No. 104408 June 21, 1993 - METRO MANILA TRANSIT CORPORATION v. COURT OF APPEALS, ET AL.

  • G.R. No. 105607 June 21, 1993 - HECTOR C. VILLANUEVA v. SANDIGANBAYAN, ET AL.

  • G.R. No. 99843 June 22, 1993 - Sps. BRAULIO ABALOS, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. Nos. 104304-05 June 22, 1993 - LUNINGNING LANDRITO v. CIVIL SERVICE COMMISSION

  • G.R. No. 104732 June 22, 1993 - ROBERTO A. FLORES, ET AL. v. FRANKLIN M. DRILON, ET AL.

  • A.M. No. RTJ-91-752 June 23, 1993 - JOVENCITO R. ZUÑO, SR. v. BALTAZAR DIZON

  • G.R. No. 90643 June 25, 1993 - PEOPLE OF THE PHIL. v. AGUSTIN G. FORTES

  • G.R. No. 93109 June 25, 1993 - MILAGROS LLAMANZARES v. COURT OF APPEALS, ET AL.

  • G.R. No. 101728 June 25, 1993 - RAMON V. ROXAS v. SPS. ANDRES DY, ET AL.

  • G.R. No. 102206 June 25, 1993 - NATIONAL POWER CORPORATION, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 102958 June 25, 1993 - RADIO COMMUNICATIONS OF THE PHILIPPINES, INC. v. NATIONAL LABOR RELATIONS COMMISSION, ET AL.

  • G.R. No. 104175 June 25, 1993 - YOUNG AUTO SUPPLY CO., ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 105361 June 25, 1993 - PEOPLE OF THE PHIL. v. BONIFACIO ENCISO

  • G.R. No. 105883 June 25, 1993 - LETICIA A. ALIMARIO v. COMMISSION ON AUDIT

  • A.M. No. RTJ-86-50 June 28, 1993 - ADELAIDA P. FELONGCO v. JUDGE LUIS D. DICTADO

  • G.R. No. 79760 June 28, 1993 - PERPETUAL SAVINGS BANK, ET AL. v. JOSE ORO B. FAJARDO, ET AL.

  • G.R. No. 99333 June 28, 1993 - SPS. ANTONIO PAILANO, JR., ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 102980 June 28, 1993 - PEOPLE OF THE PHIL. v. SALVADOR OSIGAN, ET AL.

  • G.R. No. 106498 June 28, 1993 - LOLITA DADUBO v. CIVIL SERVICE COMMISSION, ET AL.

  • A.M. No. R-711-P June 29, 1993 - SPS. ALFONSO AQUINO LIM, ET AL. v. OSCAR GUASCH, ET AL.

  • G.R. No. 78631 June 29, 1993 - COLUMBIA PICTURES, INC., ET AL. v. ALFREDO C. FLORES, ET AL.

  • G.R. No. 97564 June 29, 1993 - PEOPLE OF THE PHIL. v. RODOLFO CAYETANO

  • G.R. No. 99395 June 29, 1993 - ST. LUKE’S MEDICAL CENTER, INC. v. RUBEN O. TORRES, ET AL.

  • A.M. No. MTJ-91-554 June 30, 1993 - WARLITO ALISANGCO v. JOSE C. TABILIRAN, JR.

  • G.R. No. 58057 June 30, 1993 - HEIRS OF MARIANO LAGUTAN, ET AL. v. SEVERINA ICAO, ET AL.

  • G.R. No. 72319 June 30, 1993 - PEOPLE OF THE PHIL. v. MARTIN ALVERO, JR., ET AL.

  • G.R. No. 72608 June 30, 1993 - PEOPLE OF THE PHIL. v. JULITO U. ARNAN

  • G.R. No. 86390 June 30, 1993 - PEOPLE OF THE PHIL. v. JAIME A. ROSALES

  • G.R. No. 86994 June 30, 1993 - JAIME LOOT v. GOVERNMENT SERVICE INSURANCE SYSTEM

  • G.R. No. 94310 June 30, 1993 - PEOPLE OF THE PHIL. v. VIRGILIO ALAY-AY

  • G.R. No. 97212 June 30, 1993 - BENJAMIN YU v. NATIONAL LABOR RELATIONS COMMISSION, ET AL.

  • G.R. Nos. 98000-02 June 30, 1993 - INOCENCIO PEÑANUEVA, JR. v. SANDIGANBAYAN, ET AL.

  • G.R. Nos. 98321-24 June 30, 1993 - PEOPLE OF THE PHIL. v. RICARDO S. DE GUZMAN, ET AL.

  • G.R. Nos. 100720-23 June 30, 1993 - PEOPLE OF THE PHIL. v. ROLANDO CODILLA, ET AL.

  • G.R. No. 102748 June 30, 1993 - GOULDS PUMPS (PHILS.), INC. v. COURT OF APPEALS, ET AL.

  • G.R. No. 102984 June 30, 1993 - PEOPLE OF THE PHIL. v. RUBEN TAKBOBO

  • G.R. No. 104609 June 30, 1993 - PHILIP LEE GO, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 105671 June 30, 1993 - PEOPLE OF THE PHIL. v. MANUEL M. MAGTULOY

  • G.R. No. 105751 June 30, 1993 - BA FINANCE CORPORATION v. RUFINO CO, ET AL.

  • G.R. No. 106646 June 30, 1993 - JAIME LEDESMA v. COURT OF APPEALS, ET AL.

  • G.R. No. 108284 June 30, 1993 - PERSONNEL SERVICES v. NATIONAL LABOR RELATIONS COMMISSION, ET AL.