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  • SMC Employees Union-Ptgwo Vs Secretary Confesor G.R. No. 111262. September 19, 1996

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    NC Bergonia
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    SMC Employees Union and SMC entered into a 5-year collective bargaining agreement (CBA). One of SMC's divisions split into two separate corporations, so there were two proposals for renegotiating the CBA. SMC argued that employees who were moved to the new corporations were no longer part of the original bargaining unit and the CBA should only be effective for 3 years under the labor code. However, the Supreme Court ruled that while the representation aspect of a CBA is only effective for 3 years, all other provisions like economic terms can remain enforceable for the full term negotiated by the parties to maintain industrial peace.

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    Labor Relations

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    Smc Employees Union-ptgwo vs Secretary Confesor g.r. No. 111262. September 19, 1996

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    SMC Employees Union and SMC entered into a 5-year collective bargaining agreement (CBA). One of SMC's divisions split into two separate corporations, so there were two proposals for renegotiating the CBA. SMC argued that employees who were moved to the new corporations were no longer part of the original bargaining unit and the CBA should only be effective for 3 years under the labor code. However, the Supreme Court ruled that while the representation aspect of a CBA is only effective for 3 years, all other provisions like economic terms can remain enforceable for the full term negotiated by the parties to maintain industrial peace.

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    SMC Employees Union-Ptgwo Vs Secretary Confesor G.R. No. 111262. September 19, 1996

    Uploaded by

    NC Bergonia
    SMC Employees Union and SMC entered into a 5-year collective bargaining agreement (CBA). One of SMC's divisions split into two separate corporations, so there were two proposals for renegotiating the CBA. SMC argued that employees who were moved to the new corporations were no longer part of the original bargaining unit and the CBA should only be effective for 3 years under the labor code. However, the Supreme Court ruled that while the representation aspect of a CBA is only effective for 3 years, all other provisions like economic terms can remain enforceable for the full term negotiated by the parties to maintain industrial peace.

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    © All Rights Reserved
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    SMC EMPLOYEES UNION-PTGWO vs SECRETARY CONFESOR G.R. No. 111262.

    September 19, 1996

    SMC-Union and SMC entered into a 5-yr CBA. It states that CBA will remain enforce, taking into consideration
    representation, with 60-day freedom period. One division, Feeds and Livestock became 2 distinct Corps. Hence,
    there are 2 proposals when the CBA is to be renegotiated. SMC contends that those who were moved to the 2
    corps no longer part of the bargaining unit in SMC, so for them, no more CBA. And it should only be effective for
    3yrs under the LC.

    SC: Only for 3 years. The law is clear and definite on the duration of the CBA insofar as the representation aspect is
    concerned, but is quite ambiguous with the terms of the other provisions of the CBA. It is a cardinal principle of
    statutory construction that the Court must ascertain the legislative intent: maintain industrial peace and stability
    by having both management and labor work harmoniously together without any disturbance.

    The representation aspect refers to the identity and majority status of the union that negotiated the CBA as the
    exclusive bargaining representative of the appropriate bargaining unit concerned. All other provisions simply refers
    to the rest of the CBA, economic as well as non-economic provisions, except representation.

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