Fulache vs ABS – CBN

Facts:

The ABS-CBN Rank-and-File Employees Union executed a collective bargaining unit. Petitioner Fulache,
a driver/cameraman working for ABS CBN was made aware of the CBA but learned that they were
excluded from its coverage as ABS-CBN considered them temporary and not regular employees.

They then filed a complaint for regularization, unfair labor practice claiming that they had already
rendered more than a year of service in the company and therefore should have been recognized as
regular employees as well as enjoy the benefits that come with such a class of employee.

ABS CBN claims that they are not regular employees, but are “talents” and are considered as
independent contractors who offer their services to the companies. It contracts them on a case to
case basis considering them as persons who possess the necessary talent, skill and expertise
necessary to meet the requirement of its programs and prodctions. Instead of salaries, they are paid a
pre-arranged consideration called a “talent fee”. Lastly, they also claimed that the production of
programs per se is not necessary or desirable in its business because it could generate profits by
selling airtime to block-timers or through advertising.

The labor arbiter ruled that they were regular employees, but was silent on whether they were
entitled to the CBA benefits. While their status as regular employees were upheld throughout the
entirety of the appeal up to the CA, they were not granted the benefits afforded to regular employees
by the CBA as they had failed to raise it as an issue on appeal.

Issue: W/N Fulache and petitioners were regular employees and are thus entitled to CBA benefits? YES

Ruling:

The decision of the NLRC holding the petitioners as regular employees was upheld. What only needs
to be resolved as an issue for the purposes of implementation of the decision is whether the
peitioenrs fall within the CBA coverage.

The CBA provided that the appropriate bargaining unit shall be regular rank and file employees
excluding 1.) Personnel classified as supervisor and confidential employees, 2.) Casual or probationary
status, 3.) Personnel who are on contract status.

Under these terms, the Fulache should be included in the CBA because they are rank and file
employees who do not belong in any of the excluded categories. Nothing in the records show that
they are supervisory or confidential employees; neither are they casual nor probationary employees.
And most importantly, the arbiter's decision all the way up to the CA level held them as regular
employees and not independent contractors.