Estate of Nelson R. Dulay vs. Aboitiz Jebsen Maritime, Inc.

Facts:
Nelson Dulay was employed by General Charterers Inc. (GCI), a subsidiary of
Aboitiz Jebsen Maritime Inc. He initially worked as an ordinary seaman and later as bosun
on a contractual basis in the latters vessel.

After the completion of his employment contract, Nelson died due to acute renal failure. At
the time of his death, he was a member of the Companys Union.

Nelsons widow, Merridy Jane, thereafter claimed for death benefits through the grievance
procedure of the CBA.

However, the grievance procedure was declared deadlocked as the employer refused to
grant the benefits sought by the widow. Merridy filed a complaint with the NLRC Sub-RAB in
Gen San against the employer for death and medical benefits and damages.

The employer contended that NLRC had no jurisdiction on account of the absence of Er-Ee
relationship and alleged that Nelson is not entitled to death benefits since his death is not
work-related.

LA - ruled in favor of Nelsons widow.

NLRC - affirmed the LAs decision and when the matter was brought before the CA, the
latter referred the case to the NCMB for the designation of the Voluntary Arbitrator (VA).
The CA ruled that even if the suit filed by Merridy is a money claim, the same involves the
application of the CBA hence jurisdiction belongs to the VA and not to the LA.

Issue:
W/N the LA has no jurisdiction over the case.

Ruling:
The Court agrees with the CA in holding that the issue involves the application of the said
CBA. Under the LC, VAs have jurisdiction over cases arising from the application or
implementation of CBAs.

The Court further ruled that the provisions of the CBA were in consonance with the Omnibus
Rules & Regulations Implementing the Migrant Workers & Overseas Filipinos Act, which
states that for OFWs with CBAs, the case shall be submitted for Voluntary Arbitration.

Filipino seafarers who are covered by CBAs should therefore submit their dispute or claim
to the jurisdiction of a VA or panel of arbitrators. It is only in the absence of a CBA that
parties may opt to submit the dispute to the NLRC for compulsory arbitration.