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Brotherhood Labor Unity Movement of the Phil. v.

Zamora

Facts: The petitioners are workers who have been employed at the San Miguel Parola Glass Factory as pahinantes or kargadors for almost seven years. They worked exclusively at the SMC plant, never having been assigned to other companies or departments of San Miguel Corp, even when the volume of work was at its minimum. Their work was neither regular nor continuous, depending on the volume of bottles to be loaded and unloaded, as well as the business activity of the company. However, work exceeded the eight-hour day and sometimes, necessitated work on Sundays and holidays. -for this, they were neither paid overtime nor compensation. Sometime in 1969, the workers organized and affiliated themselves with Brotherhood Labor Unity Movement (BLUM). They wanted to be paid to overtime and holiday pay. They pressed the SMC management to hear their grievances. BLUM filed a notice of strike with the Bureau of Labor Relations in connection with the dismissal of some of its members. San Miguel refused to bargain with the union alleging that the workers are not their employees but the employees of an independent labor contracting firm, Guaranteed Labor Contractor. The workers were then dismissed from their jobs and denied entrance to the glass factory despite their regularly reporting for work. A complaint was filed for illegal dismissal and unfair labor practices. Issue: Whether or not there was employer-employee (ER-EE)relationship between the workers and San Miguel Corp. Held: YES. In determining if there is an existence of the (ER-EE) relationship, the four-fold test was used by the Supreme Court. These are: The selection and engagement of the employee Payment of wages Power of dismissal Control Test- the employers power to control the employee with respect to the means and methods by which work is to be accomplished In the case, the records fail to show that San Miguel entered into mere oral agreements of employment with the workers. Considering the length of time that the petitioners have worked with the company, there is justification to conclude that they were engaged to perform activities necessary in the usual business or trade. Despite past shutdowns of the glass plant, the workers promptly returned to their jobs. The term of the petitioners employment appears indefinite and the continuity and habituality of the petitioners work bolsters the claim of an employee status. As for the payment of the workers wages, the contention that the independent contractors were paid a lump sum representing only the salaries the workers where entitled to have no merit. The amount paid by San Miguel to the contracting firm is no business expense or capital outlay of the latter. What the contractor receives is a percentage from the total earnings of all the workers plus an additional amount from the earnings of each individual worker. The power of dismissal by the employer was evident when the petitioners had already been refused entry to the premises. It is apparent that the closure of the warehouse was a ploy to get rid of the petitioners, who were then agitating the company for reforms and benefits. The inter-office memoranda submitted in evidence prove the companys control over the workers. That San Miguel has the power to recommend penalties or dismissal is the strongest indication of the companys right of control over the workers as direct employer. *SC ordered San Miguel to reinstate the petitioners with 3 years backwages. FACTS:

Petitioners-members of Brotherhood Labor Unit Movement of the Philippines (BLUM), worked as cargadores or pahinante since 1961 at the SMC Plant. Sometime in January 1969, the petitioner workers numbering 140 organized themselves and engaged in union activities. Believing that they are entitled to overtime and holiday pay, the petitioners aired their gripes and grievances but it was not heeded by the respondents. One of the union member was dismissed from work. Hence, the petitioners filed a complaint of unfair labor practice against respondent SMC on the ground of illegal dismissal. On the other hand, SMC argued that the complainant are not or have never been their employees but they are the employees of the Guaranteed Labor Contractor, an independent labor contracting firm Labor Arbiter Nestor Lim rendered a decision in favor of the complainants which was affirmed by the NLRC On appeal, the Secretary set aside the NLRC ruling stressing the absence of an employer-employee relationship Issue: Whether an employer-employee relationship exists between petitioners and respondent San Miguel Corporation HELD: YES In determining the existence of an employer-employee relationship, the elements that are generally considered are the following: (a) the selection and engagement of the employee; (b) the payment of wages; (c) the power of dismissal; and (d) the employer's power to control the employee with respect to the means and methods by which the work is to be accomplished. It is the called "control test" that is the most important element In the CAB, petitioners worked continuously and exclusively for an average of 7 years for the company. Considering the length of time that the petitioners have worked, there is justification to conclude that they were engaged to perform activities necessary or desirable in the usual business of trade of the respondent. Hence, petitioners are considered regular employees. Even assuming that there is a contract of employment executed between SMC and the said labor contractor, the court ruled that Guaranteed and Reliable Labor contractors have neither substantial capital nor investment to qualify as an independent contractor under the law. The premises, tools and equipments used by the petitioners in their jobs are all supplied by the respondent SMC. It is only the manpower or labor force which the alleged contractors supply, suggesting the existence of a "labor only" contracting scheme prohibited by law It is important to emphasize that that in a truly independent contractor-contractee relationship, the fees are paid directly to the manpower agency in lump sum without indicating or implying that the basis of such lump sum is the salary per worker multiplied by the number of workers assigned to the company. In the CAB, the alleged independent contractors were paid a lump sum representing only the salaries the workers were entitled to, arrived at by adding the salaries of each worker which depend on the volume of work they had accomplished

individually. Therefore, relationship.

there

is

no

independent

contractor-contractee

WHEREFORE, PETITION IS GRANTED. HALAGUENA vs. PHILIPPINE AIRLINES INC.

FACTS: Patricia Halaguea, et. al, (Halaguea) are flight attendants employed by Philippine Airlines Inc. (PAL) as well as members of Flight Attendants and Stewards Association of the Philippines (FASAP), the exclusive bargaining agent of flight attendants, flight stewards and pursers of PAL. Halaguea assails Sec. 144 of the CBA entered into by PAL-FASAP and FASAP, which provides for a younger retirement age for female cabin attendants than those of their male counterparts, to be unconstitutional. Due to Halagueas claim, Robert D. Anduiza, President of FASAP submitted their 2004-2005 CBA proposals and manifested their willingness to commence the collective bargaining negotiations between the management and the association, at the soonest possible time. Halaguea also filed before the RTC of Makati, Branch 147 a Special Civil Action for Declaratory Relief with Prayer for the Issuance of Temporary Restraining Order and Writ of Preliminary Injunction against PAL for the invalidity of the assailed provision of the CBA. The RTC eventually granted such petition. Aggrieved, PAL, filed a Petition for Certiorari and Prohibition with Prayer for a Temporary Restraining Order and Writ of Preliminary Injunction with the Court of Appeals praying that the order of the RTC, which denied its objection to its jurisdiction, be annulled and set aside for having been issued without and/or with grave abuse of discretion amounting to lack of jurisdiction. The CA granted PALs petition on the ground that the RTC has no jurisdiction over a labor dispute, hence the case at bar. ISSUES: Whether or not the RTC has jurisdiction over the petitioners action challenging the legality or constitutionality of the provisions on the compulsory retirement age contained in the CBA between respondent PAL and FASAP. HELD: Yes. The subject of litigation is incapable of pecuniary estimation, exclusively cognizable by the RTC. Being an ordinary civil action, the same is beyond the jurisdiction of labor tribunals. Not every controversy or money claim by an employee against the employer or vice-versa is within the exclusive jurisdiction of the labor arbiter. Actions between employees and employer where the employeremployee relationship is merely incidental and the cause of action precedes from a different source of obligation is within the exclusive jurisdiction of the regular court. Here, the employer-employee relationship between the parties is merely incidental and the cause of action ultimately arose from different sources of obligation, i.e., the Constitution and CEDAW.