Goya v Goya Employees Union

Jan. 21, 2013

Peralta, J.
Topic Unfair Labor Practice
Author: Magsino, Patricia Marie C.

FACTS:

Goya, Inc., a domestic corporation engaged in the manufacture, importation, and

wholesale of top quality food products, hired contractual employees from PESO
Resources Development Corporation (PESO) to perform temporary and occasion
al services in its factory in Parang, Marikina City

This prompted respondent Goya, Inc. Employees Union

FFW (Union) to request for a grievance conference on the ground that the
contractual workers do not belong to the categories of employees stipulated in the
existing CBA

When the matter remained unresolved, the grievance was referred to the NCMB f
or voluntary arbitration.They agreed to submit for resolution the solitary issue of
whether or not the Company is guilty of unfair labor acts in engaging the service
s of PESO, a third party service provider, under the existing CBA, laws, and jurisp
rudence.

VA dismissed the Unions charge of ULP for being purely speculative and for
lacking in factual basis, but the Company was directed to observe and comply wit
h its commitment under the CBA

The Company immediately filed a petition for review before the Court of Appeals
(CA) under Rule 43 of the Revised Rules of Civil Procedure to set aside the
directive to observe and comply with the CBA commitment pertaining to the hirin
g of casual employees when necessitated by business circumstances

The CA dismissed the petition and affirmed the decision of the VA, Goya moved
for reconsideration but it was also denied, hence this petition

2009 Goya filed a Manifestation that the stockholders and directors

unanimously voted to shorten the companys corporate existence only until June
2006 the three year period allowed by law for liquidation already expired in 2009

The Court believes that the issues raised in this case necessitates a resolution for
future guidance
ISSUE:

Was the act of Goya in hiring PESO as contractual employees an unfair labor
practice, and violative of the CBA?
HELD:

NO Hiring PESO is not a ULP

YES Hiring PESO is a violation of the CBA but not a ULP

Sec. 4, Art. I.
3. Casual EmployeeOne hired by the COMPANY to perform occasional or
seasonal work directly connected with the regular operations of the
COMPANY, or one hired for specific projects of limited duration not
connected directly with the regular operations of the COMPANY.

When Goya hired PESO as contractual employees, it inadvertently hired

employees that would perform work that Casual employees, according to the CBA,
could have performed thus violating the CBA

While the hiring of PESO as contractual employees is a violation of Sec. 4, Art. I of

the CBA, it does not constitute an unfair labor practice as it is not characterized as
a gross violation of the CBA.

Violations of the CBA, except those which are gross in character, shall no longer be
treated as unfair labor practice