April 2016 - Philippine Supreme Court Decisions/Resolutions
Philippine Supreme Court Jurisprudence
G.R. No. 213299, April 19, 2016 - PNCC SKYWAY CORPORATION, Petitioner, v. THE SECRETARY OF LABOR AND EMPLOYMENT AND PNCC SKYWAY CORPORATION EMPLOYEES UNION, Respondents.
FIRST DIVISION
G.R. No. 213299, April 19, 2016
PNCC SKYWAY CORPORATION, Petitioner, v. THE SECRETARY OF LABOR AND EMPLOYMENT AND PNCC SKYWAY CORPORATION EMPLOYEES UNION, Respondents.
D E C I S I O N
PERLAS-BERNABE, J.:
Assailed in this petition for review on certiorari1 are the Decision2 dated September 30, 2013 and the Resolution3 dated June 11, 2014 of the Court of Appeals (CA) in CA-G.R. SP No. 111201, which affirmed the Decision4 dated August 29, 2008 and the Resolution5 dated August 26, 2009 of the Secretary of the Department of Labor and Employment (DOLE) holding petitioner PNCC Skyway Corporation (PSC) liable for P30,000.00 as indemnity to each of its terminated employees, for failure to comply with the thirty (30)-day notice requirement under Article 298 (formerly Article 283) of the Labor Code, as amended.6
In October 1977, the Republic of the Philippines, through the Toll Regulatory Board (TRB), and the Philippine National Construction Corporation7 (PNCC) entered into a Toll Operation Agreement (TOA)8 for the latter's operation and maintenance of the South Metro Manila Skyway (Skyway).9
On November 27, 1995, a Supplemental TOA (STOA)10 was executed by the TRB, PNCC, and Citra Metro Manila Tollways Corporation (CITRA), whereby CITRA, as an incoming investor, agreed, under a build-and-transfer scheme,11 to finance, design, and construct the Skyway.12 However, PNCC retained the right to operate and maintain the toll facilities,13 and for such purpose, undertook to incorporate a subsidiary company that would assume its rights and obligations under the STOA:
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6.16. Operator's Subsidiary CompanyThus, on December 15, 1998, PSC was incorporated as a subsidiary of PNCC to operate the Skyway on PNCC's behalf. As such, it was tasked to maintain the toll facilities, ensure traffic safety, and collect toll fees at the Skyway.15Subject to all relevant existing laws, rules, and regulations, [PNCC] shall incorporate a subsidiary company (the "Subsidiary Company") at least 6 months prior to the Partial Operation Date [PNCC] shall be the sole stockholder of the Subsidiary Company. The powers and functions of the Subsidiary Company shall only be to undertake and perform the obligations of [PNCC] under this Agreement, including without limitation Operation and Maintenance.14
On July 18, 2007, the TRB, PNCC, and CITRA entered into an Amended STOA (ASTOA).16 Under the ASTOA, the operation and management of the Skyway would be transferred from PSC to a new Replacement Operator, which turned out to be the Skyway O & M Corporation (SOMCO).17 A transition period of 5 1/2 months was provided commencing on the date of signing of the ASTOA until December 31, 2007, during which period, PSC continued to operate the Skyway.18
In line with the above-mentioned transfer, PSC, on December 28, 2007, issued termination letters to its employees and filed a notice of closure with the DOLE - National Capital Region, advising them that it shall cease to operate and maintain the Skyway, and that the services of the employees would be consequently terminated effective January 31, 2008.19 In this regard, PSC offered its employees a separation package consisting of 250% of their basic monthly salary for every year of service, gratuity pay of P40,000.00 each, together with all other remaining benefits such as 13th month pay, rice subsidy, cash conversion of leave credits, and medical reimbursement.20
On the same date, the PSC Employees Union (PSCEU) filed a Notice of Strike on the ground of unfair labor practice resulting in union busting and dismissal of workers. On December 31, 2007, the DOLE Secretary intervened and assumed jurisdiction over the labor incident.21
In a Decision22 dated August 29, 2008, the DOLE Secretary dismissed the charges of unfair labor practice and union busting, as well as the counter