Rogeline R.

Magno
Block A

PHILIPPINE APPLIANCE CORP V. CA

G.R. No. 149434
June 3, 2004

Facts:

This is a case by appeal for certiorari by the petitioner to set aside the decision of the Court of Appeals, in
connection with the petitioner’s partial appeal and as well as the resolution of the same court, denying
the motion for reconsideration. The case involves the payment of signing bonus, to which the employees
of the herein petitioner was deemed to be entitled to by the Court of Appeals, in affirming the order of
the Secretary of Labor and Employment. The petitioner contends the principle laid down in the case of
Caltex vs. Brillantes, which held that the award for a signing bonus should partake the nature of an
incentive and premium for the peaceful negotiations and amicable resolution of disputes. The court on
the other hand, argues that award of the signing bonus was affirmed since petitioner itself offered the
same as an incentive to expedite the CBA negotiations. This offer was not withdrawn and was still
outstanding when the dispute reached the DOLE, therefore still covered by the maintenance of existing
benefits clause.

Issue:
Whether the signing bonus is covered under the maintenance of existing benefits clause.

Held:

No, the signing bonus is no longer covered under the maintenance of existing benefits clause.
The petitioner can longer be obliged to pay the signing bonus because the requirement of a speedy and
amicable conclusion of the CBA negotiations was not complied with. As stated in the case of Meralco vs.
The Honorable Secretary of Labor the court stated that, a signing bonus is a grant motivated by the
goodwill generated when a CBA is successfully negotiated and signed between the employer and the
union. In the present case, such signing bonus cannot be considered covered by the maintenance of
existing benefits clause because, the award for a signing bonus is in the nature of an incentive and
premium for peaceful negotiations and amicable resolution of disputes which apparently are not present
in the instant case.