Philippine Supreme Court Resolutions > Year 2009 > April 2009 Resolutions > [G.R. No. 184188 : April 22, 2009] ASIA BULK TRANSPORT PHILS., INC. V. ASSOCIATED MARINE OFFICERS & SEAMEN'S UNION OF THE PHILIPPINES:

Quoted hereunder, for your information, is a resolution of this Court dated 22 April 2009:

G.R. No. 184188 (Asia Bulk Transport Phils., Inc. v. Associated Marine Officers & Seamen's Union of the Philippines).- Petitioner Asia Bulk Transport Phils., Inc. is the local manning agency of Tohshin Kisen Co., Ltd./Kyoritsu Kisen Company Ltd.^[1] (Kyoritsu), a Japanese ship-owner which employs Filipino seafarers for their ocean-going vessels, while respondent Associated Marine Officers & Seamen's Union of the Philippines (AMOSUP) is the labor union representing the Filipino seafarers in the Collective Bargaining Agreement (CBA) entered into by the parties from 1989 to 2004.^[2]

In the CBA, it was agreed that Kyoritsu shall remit $50 per month per Filipino seafarer, as contributions to the provident fund, to a designated Hong Kong account of AMOSUP. Kyoritsu failed to religiously remit said amount for the years 1995 to 1999 and 2003; that as of December 2003, respondent's claim amounted to US$45,856.07. On August 9, 2005, AMOSUP sent a demand letter to petitioner requesting the latter to send a representative to a clarificatory meeting scheduled on August 12, 2005 regarding Kyoritsu's unremitted provident fund contributions. Petitioner failed to attend the meeting and remained silent about the issue.

Thus, AMOSUP was compelled to file a "Notice to Arbitrate" before the National Conciliation and Mediation Board (NCMB) - DOLE Manila. On November 20, 2007, the Voluntary Arbitrator rendered a decision in favor of the Union after finding that: (1) under the said Four Parties Agreement,^[3] the petitioner is directly liable for the non-implementation and non-enforcement of the CBA; (2) Section 10 of Republic Act No. 8042 ( The Migrant Workers and Overseas Filipino Act of 1995) categorically provides that the liability of the principal     employer and recruitment/placement agency for any and all claims shall be joint and solidary; (3) the cause of action has not prescribed as the running of the prescriptive period was interrupted when a grievance meeting was called on August 12,2005; and (4) the petitioner is estopped from questioning the NCMB's jurisdiction over the case.^[4]

Petitioner went up to the Court of Appeals which affirmed the decision in toto; hence, this petition. Respondent has filed its comment. While awaiting petitioner's reply in this case, the parties submitted a Compromise Agreement on March 4, 2009 stating that:

1) They have reconciled their differences and hereby submit to the Honorable Court, for its consideration, their Compromise Agreement, the terms and conditions of which are, as follows:

(a) SETTLEMENT AMOUNT

The full and final settlement amount shall be US Dollars FORTY FIVE THOUSAND EIGHT HUNDRED FIFTY SIX and 07/100 (USD45,856.07) claims for legal interest and attorney's fees have been waived by respondent.

(b) MANNER OF PAYMENT

The outstanding unremitted Provident Fund of USD FORTY FIVE THOUSAND EIGHT HUNDRED FIFTY SIX and 07/100 (USD45,856.07) shall be paid by petitioner to the respondent in twelve (12) equal monthly installments (USD THREE THOUSAND EIGHT HUNDRED TWENTY ONE and 33/100 (USD3,821.33) not later than every end of the month commencing February 28, 2009 and ending January 31, 2010. In the event petitioner fails to remit installment on the due date thereof, the entire remaining balance of the settlement amount shall be immediately due and demandable.

The parties have no other and further claim or counter claims against each other.

WHEREFORE, it is most respectfully prayed of this Honorable Court that the Compromise Agreement be approved.

Parties further pray for such other reliefs and equitable under the premises.

Manila, Philippines, February 24, 2009.

ASSOCIATED MARINE OFFICERS' & SEAMEN'S UNION OF THE   PHILIPPINES	ASIA BULK TRANSPORT  PHILS., INC.
Respondent	Petitioner
(sgd.)	(sgd.)
By: CAPT. GRGORIO S. OCA   President	By: ERNESTO T. TUVIDA   President
Assisted by: (sgd.) EMMANUEL E. PARTIDO Counsel for Respondent AMOSUP PTR# 7211300/Jan. 5 '09/Manila IBP# 706747/Dec. 8 '08/Manila III 7211300/Jan. 5 '09/Manila Roll No. 37406   MCLE Compliance No. 11-0003393	Assisted by: (sgd.) DANTE H. CORTEZ Counsel for Petitioner Asia Bulk PTR# 0054699/Aug4'08/SanJuan,MM. IBP 757810; Aug 4, 2008, Manila II San Juan, Metro Manila Roll No. 16731 MCLE II-00149385

The Court notes that the Compromise Agreement is not contrary to law, morals, public order, and public policy and is, in fact, in line with this Court's policy of encouraging litigants to settle their differences amicably.

WHEREFORE, the Compromise Agreement between Asia Bulk Transport Phils., Inc. and Associated Marine Officers and Seamen's Union of the Philippines is APPROVED. The parties are ORDERED to comply with their respective undertakings as set forth in their Compromise Agreement. The case is considered CLOSED and TERMINATED.

SO ORDERED.

WITNESS the Honorable Consuelo Ynares-Santiago, Chairperson, Hon. Ma. Alicia Austria-Martinez, Minita V. Chico-Nazario, Antonio Eduardo B. Nachura and Diosdado M. Peralta, Members, Third Division, this 22nd day of April 2009.

Endnotes:

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^[1] Kyoritsu Kisen Co. Ltd. became insolvent so management was reverted to Tohshin Kisen Co.. Ltd.

^[2] CA Decision, p. 2; rollo, p. 24.

^[3] The Four Parties: Tohshin Kisen Co., Ltd. (referred to as Ship-owner), Asia Bulk Transport Phils., Inc. (referred to as Agent), the Associated Marine Officers and Seamen's Union of the Philippines (AMOSUP) and the All Japan Seamen's Union (JSU) agreed to the terms of employment of Philippine crew. {Rollo, p. 50.)

^[4] Rollo, p. 27.

^[5] Id. at 228-229