National Federation of Sugar Workers v. Ovejera
REITERATIONFacts
The Antecedents: The National Federation of Sugar Workers (NFSW) was the bargaining agent for rank-and-file employees of Central Azucarera de la Carlota (CAC). Their Collective Bargaining Agreement (CBA) effective February 16, 1981, stipulated bonuses amounting to 1-½ months' salary. On November 28, 1981, NFSW struck, demanding the 13th month pay under PD 851 in addition to existing bonuses. A compromise agreement on November 30, 1981, stipulated adherence to a Supreme Court decision on whether the 13th month pay was separate from existing bonuses. At that time, G.R. No. 51254 (Marcopper Mining Corp. vs. Blas Ople) was pending, concerning the 13th month pay. This case was dismissed on June 11, 1981, but a motion for reconsideration was denied on December 15, 1981, with insufficient votes to establish doctrine. Entry of judgment was made on December 18, 1981. Procedural History: After the Marcopper decision became final, NFSW renewed its demand for the 13th month pay, which CAC refused. On January 22, 1982, NFSW filed a notice to strike based on non-payment. Six days later, NFSW struck. On January 29, 1982, a report of the strike-vote was filed. On February 8, 1982, CAC filed a petition to declare the strike illegal for violating Batas Pambansa Blg. 130, specifically for striking before the 15-day cooling-off period for ULP strikes and before the 7-day lapse after reporting the strike-vote to the Ministry of Labor and Employment (MOLE). Labor Arbiter Ethelwoldo R. Ovejera declared the strike illegal in a decision dated February 20, 1982. The Petition: NFSW filed a petition for prohibition with the Supreme Court, seeking to annul the Labor Arbiter's decision and restrain its implementation. They alleged that the enforcement would violate their fundamental rights. They prayed for a preliminary injunction and, ultimately, for the declaration of the Labor Arbiter's decision as null and void.
Issue(s)
Whether the strike declared by NFSW is illegal due to non-compliance with the mandatory cooling-off period and the 7-day strike ban after reporting the strike-vote. Whether CAC is obliged under PD 851 to pay a 13th month salary in addition to the Christmas, milling, and amelioration bonuses already provided.
Ruling
The petition is dismissed for lack of merit. The strike declared by NFSW is illegal. CAC is not obliged to pay a 13th month pay in addition to the bonuses already provided.
Ratio Decidendi
On the illegality of the strike: The Court held that Articles 264 and 265 of the Labor Code, concerning the cooling-off period and the 7-day strike ban after reporting the strike-vote, are mandatory and not merely directory. The law explicitly states that a union "may strike" only "until the lapse of the requisite number of days" from the filing of the notice, and that the MOLE must be furnished the strike-vote results "at least seven (7) days before the intended strike." The purpose of these mandatory periods is to provide an opportunity for mediation and conciliation, allowing the Ministry of Labor and Employment to exert efforts for voluntary settlement and to ensure that strikes are based on the majority will of the union membership. The NFSW failed to comply with both mandatory periods, as they struck six days after filing the notice and before the lapse of the cooling-off period, and they did not file the strike-vote report at least seven days before the strike. Therefore, the strike was illegal. On the obligation to pay 13th month pay: The Court interpreted Presidential Decree No. 851 (13th Month Pay Law) and its implementing rules to mean that employers already paying a 13th month pay or its equivalent are exempt from the decree's mandate. The evident intention of PD 851 was to provide additional income to employees not already receiving such benefit, not to impose a double burden on employers. The implementing rules clarify that "equivalent" includes Christmas bonus, mid-year bonus, profit-sharing payments, and other cash bonuses amounting to at least 1/12th of the basic salary. In this case, the CBA between NFSW and CAC stipulated Christmas, milling, and amelioration bonuses, the aggregate of which far exceeded a month's salary. Therefore, these bonuses constituted the "equivalent" of the 13th month pay, exempting CAC from the additional obligation under PD 851. The Court also noted that the Marcopper decision, relied upon by NFSW, did not clearly hold that the employer was liable for a separate 13th month pay when the motion for reconsideration was denied by less than the required number of votes to establish doctrine.
Main Doctrine
The cooling-off period and the 7-day strike ban after the filing of a strike-vote report are mandatory and must be strictly complied with. Failure to observe these periods renders a strike illegal. Furthermore, employers already paying a 13th month pay or its equivalent, such as bonuses stipulated in a CBA, are exempt from the additional obligation under PD 851.