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796 Phil. 817

SECOND DIVISION

[ G.R. No. 220383, October 05, 2016 ]

SONEDCO WORKERS FREE LABOR UNION (SWOFLU) / RENATO YUDE,

MARIANITO REGINO, MANUEL YUMAGUE, FRANCISCO DACUDAG, RUDY
ABABAO, DOMINIC SORNITO, SERGIO CAJUYONG, ROMULO LABONETE,
GENEROSO GRANADA, EMILIO AGUS, ARNOLD CAYAO, BEN GENEVE, VICTOR
MAQUE, RICARDO GOMEZ, RODOLFO GAWAN, JIMMY SULLIVAN, FEDERICO
SUMUGAT, JR., ROMULO AVENTURA, JR., JURRY MAGALLANES, HERNAN
EPISTOLA, JR., ROBERTO BELARTE, EDMON MONTALVO, TEODORO MAGUAD,
DOMINGO TABABA, MAXIMO SALE, CYRUS DIONILLO, LEONARDO JUNSAY,
JR., DANILO SAMILLION, MARIANITO BOCATEJA, JUANITO GEBUSION,
RICARDO MAYO, RAUL ALIMON, ARNEL ARNAIZ, REBENCY BASOY, JIMMY
VICTORIO BERNALDE, RICARDO BOCOL, JR., JOB CALAMBA, WOLFRANDO
CALAMBA, RODOLFO CASISID, JR., EDGARDO DELA PENA, ALLAN DIONILLO,
EDMUNDO EBIDO, JOSE ELEPTICO, JR., MARCELINO FLORES, HERNANDO
FUENTEBILLA, SAUL HITALIA, JOSELITO JAGODILLA, NONITO JAYME, ADJIE
JUANILLO, JEROLD JUDILLA, EDILBERTO NACIONAL, SANDY NAVALES,
FELIPE NICOLASORA, JOSE PAMALO-AN, ISMAEL PEREZ, JR., ERNESTO
RANDO, JR., PHILIP REPULLO, VICENTE RUIZ, JR., JOHN SUMUGAT, CARLO
SUSANA, ROMEO TALAPIERO, JR., FERNANDO TRIENTA, FINDY VILLACRUZ,
JOEL VILLANUEVA, AND JERRY MONTELIBANO, PETITIONERS, VS.
UNIVERSAL ROBINA CORPORATION, SUGAR DIVISION-SOUTHERN NEGROS
DEVELOPMENT CORPORATION (SONEDCO), RESPONDENT.

DECISION

LEONEN, J.:

An employer who refuses to bargain with the union and tries to restrict its bargaining power is guilty of unfair
labor practice. In determining whether an employer has not bargained in good faith, the totality of all the acts of
the employer at the time of negotiations must be taken into account.

This resolves a Petition[1] for review assailing the Decision[2] dated January 30, 2015 and the Resolution[3] dated
July 27, 2015 of the Court of Appeals. The Court of Appeals dismissed the Petition for Certiorari filed by
members of SONEDCO Workers Free Labor Union for lack of merit.[4]

On May 6, 2002, Universal Robina Corporation Sugar Division - Southern Negros Development Corporation
(URC-SONEDCO) and Philippine Agricultural Commercial and Industrial Workers Union (PACIWU-TUCP),
then the exclusive bargaining representative of URC-SONEDCO's rank-and-file employees, entered into a
Collective Bargaining Agreement (2002 Collective Bargaining Agreement) effective January 1, 2002 to
December 31, 2006.[5] Under the 2002 Collective Bargaining Agreement, rank-and-file employees were entitled
to a wage increase of P14.00/day for 2002 and P12.00/day for the succeeding years until 2006.[6]

On May 17, 2002, days after the 2002 Collective Bargaining Agreement was signed, a certification election was
conducted. SONEDCO Workers Free Labor Union won and replaced PACIWU-TUCP as the exclusive

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bargaining representative.[7]

PACIWU-TUCP questioned the results of the certification election before the Department of Labor and
Employment. On July 8, 2002, Med-Arbiter Romulo Sumalinog certified SONEDCO Workers Free Labor Union
as the sole and exclusive bargaining representative of URC-SONEDCO.[8] This was affirmed by the Labor
Secretary in a Resolution dated December 27, 2002, which became final on April 15, 2003.[9] PACIWU-TUCP
elevated the same issue to the Court of Appeals and thereafter this Court, which on July 11, 2007, resolved that
the certification election was valid. SONEDCO Workers Free Labor Union was declared the exclusive bargaining
agent of URC-SONEDCO's rank-and-file employees.[10]

URC-SONEDCO consistently refused to negotiate a new collective bargaining agreement with SONEDCO
Workers Free Labor Union, despite several demands from SONEDCO Workers Free Labor Union, allegedly due
to the 2002 Collective Bargaining Agreement, which it signed with PACIWU-TUCP.[12]

Despite being the incumbent exclusive bargaining agent, SONEDCO Workers Free Labor Union filed before the
Department of Labor and Employment a Petition[13] for certification election on December 6, 2006 in view of the
approaching expiration of the 2002 Collective Bargaining Agreement. On December 31, 2006, the 2002
Collective Bargaining Agreement expired with no new collective bargaining agreement being signed.[14]

On August 28, 2007, with no collective bargaining agreement in effect, URC-SONEDCO informed the rank-and-
file employees that they would be granted the following economic benefits:

(1) Wage increase of P16.00/day effective January 1, 2007;

(2) Group life insurance of P50,000.00 coverage/year;
(3) Emergency leave in lieu of bereavement leave, up to five (5) days per year; and
(4) Cash loan in lieu of emergency loan of P5,000.00, payable in 11 months.[15]

URC-SONEDCO asked the employees who wished to avail themselves of these-benefits to sign an
acknowledgment receipt/waiver (2007 waiver), which stated that "[i]n the event that a subsequent [collective
bargaining agreement] is negotiated between Management and Union, the new [Collective Bargaining
Agreement] shall only be effective January 1, 2008."[16] URC-SONEDCO claimed that the 2007 waiver was
designed to avoid and/or prevent double compensation.[17]

Several SONEDCO Workers Free Labor Union members refused to sign the 2007 waiver. Hence, they did not
receive the benefits given to other members of the bargaining unit who had done so.[18]

In 2008, another wage increase of P16.00/day effective January 1, 2008 were given to employees who signed an
acknowledgment receipt/waiver (2008 waiver).[19] The 2008 waiver stated that "[s]a panahon na kung saan may
[collective bargaining agreement] na maisasara sa pagitan ng Management at Uniyon, ito ay magiging epektibo
lamang Simula January 1, 2009."[20]

Again, several SONEDCO Workers Free Labor Union members refused to sign the 2008 waiver. They did not
receive the benefits from URC-SONEDCO.[20]

On August 20, 2008, a certification election was conducted.[21] SONEDCO Workers Free Labor Union won
again and proceeded to negotiate a new collective bargaining agreement, which became effective January 1, 2009

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to December 31, 2013 (2009 Collective Bargaining Agreement).[22]

On July 2, 2009, SONEDCO Workers Free Labor Union and its members who refused to sign the 2007 and 2008
waivers filed a complaint for unfair labor practices against URC-SONEDCO.[23] They argued that the
requirement of a waiver before the release of the wage increase violated their right to self-organization, collective
bargaining, and concerted action.[24]

The Labor Arbiter found that URC-SONEDCO did not commit unfair labor practice when it increased the wages
of the rank-and-file employees for 2007 and 2008.[25] He found that, the requirement of a waiver aside, it was
benevolent for URC-SONEDCO to give its employees additional benefits outside the Collective Bargaining
Agreement.[26] However, the Labor Arbiter ordered URC-SONEDCO to pay the employees who refused to sign
the 2007 and 2008 waivers of the benefits received by their fellow employees for 2007 and 2008. As a new
collective bargaining agreement had already been renegotiated and did not include the years 2007 and 2008, the
purpose of the waivers was already served.

On appeal, the National Labor Relations Commission sustained[27] the Labor Arbiter's Decision that the
requirement of a waiver before the release of the benefits for 2007 and 2008 did not constitute unfair labor
practice:

Such an act does not constitute interference, restraining or coercing employees in the exercise of
their right to self organization or to bargain collectively, neither is it tantamount to discrimination
against union members who refused to waive wage increase in a CBA. As aptly termed by
respondents, it is an "offer" during the absence of a Collective Bargaining Agreement (CBA) and
during the time when there was an unresolved union representation, which this Commission
considers as reasonable.[29]

The National Labor Relations Commission likewise affirmed the decision to award the wage increase to the
employees who initially refused to sign the waiver.[30]

Aggrieved, members of SONEDCO Workers Free Labor Union filed before the Court of Appeals a Petition for
Certiorari assailing the National Labor Relations Commission Decision. The Court of Appeals found no grave
abuse of discretion in the assailed decision and dismissed the Petition.[31]

Hence, on October 22, 2015, this Petition[32] was filed.

In the Resolution[33] dated January 11, 2016, this Court required respondent URC-SONEDCO to file its comment
on the Petition. Respondent filed its Comment[34] on March 22, 2016.

Petitioners now argue that the Court of Appeals failed to consider the totality of respondent's dealings with them.
[35] They allege that despite their several invitations, respondent consistently failed to bargain with them, and the

wage increase was just another move to avoid negotiations.[36] Petitioners claim that the benefits given by
respondent was an economic incentive meant to encourage individual employees to give up agreement bargaining
for 2007 and 2008.[37] Moreover, petitioners maintain that the wage increase for 2007 and 2008 should be
considered as a continuing benefit over what was already provided in the 2009 Collective Bargaining Agreement
because Article XXI of the 2009 Collective Bargaining Agreement excluded claims pending before the courts.

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[38] Article XXI provides:

ARTICLE XXI
COMPLETE SETTLEMENT

The parties agree that this Agreement is full and complete settlement of all demands, requests,
claims and disputes of any nature, written or verbal, that either party have or may have against the
other prior to the effectivity hereof, except those subject of pending cases before the NLRC or its
arbitration branch, or before the DOLE or regular courts.[39]

Respondent points out that petitioners merely rehashed the same matters already ruled upon by the Court of
Appeals.[40] It reiterates that both the National Labor Relations Commission and the Court of Appeals found
them not guilty of unfair labor practice since the waivers did not violate the employees' right to organize.[41]
Moreover, the employees freely signed the waivers; even petitioners did not accuse respondent of coercing
employees to sign these waivers.[42] Respondent claims that the benefits that it offered were higher than what the
employees had previously received; there was no diminution of benefits involved.[43]

For resolution are the following issues:

First, whether respondent committed unfair labor practice;

Second, whether petitioners, who refused to sign the 2007 and 2008 waivers, are entitled to the wage increase and
other economic benefits as a continuing employee benefit notwithstanding the 2009 Collective Bargaining
Agreement; and

Lastly, whether respondent is liable for damages.

Respondent is guilty of unfair labor practice.

Both the National Labor Relations Commission and the Court of Appeals ruled that respondent did not commit
unfair labor practice since the requirement of a waiver for 2007 and 2008 did not interfere with the employees 5
exercise of their right to self-organization.[44] However, the Court of Appeals failed to take into account that
unfair labor practice not only involves acts that violate the right to self-organization but also covers several acts
enumerated in Article 259 of the Labor Code, thus:

ARTICLE 259. [248] Unfair Labor Practices of Employers. — It shall be unlawful for an employer
to commit any of the following unfair labor practices:

(a) To interfere with, restrain or coerce employees in the exercise of their right to self-
organization;

(b) To require as a condition of employment that a person or an employee shall not join a labor
organization or shall withdraw from one to which he belongs;

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(c) To contract out services or functions being performed by union members when such will
interfere with, restrain or coerce employees in the exercise of their right to self-organization;

(d) To initiate, dominate, assist or otherwise interfere with the formation or administration of any
labor organization, including the giving of financial or other support to it or its organizers or
supporters;

(e) To discriminate in regard to wages, hours of work and other terms and conditions of
employment in order to encourage or discourage membership in any labor organization. Nothing
in this Code or in any other law shall stop the parties from requiring membership in a recognized
collective bargaining agent as a condition for employment, except those employees who are already
members of another union at the time of the signing of the collective bargaining agreement.
Employees of an appropriate bargaining unit who are not members of the recognized collective
bargaining agent may be assessed a reasonable fee equivalent to the dues and other fees paid by
members of the recognized collective bargaining agent, if such non-union members accept the
benefits under the collective bargaining agreement: Provided, That the individual authorization
required under Article 242, paragraph (o) of this Code 204 shall not apply to the non-members of
the recognized collective bargaining agent;

(f) To dismiss, discharge or otherwise prejudice or discriminate against an employee for having
given or being about to give testimony under this Code;

(g) To violate the duty to bargain collectively as prescribed by this Code;

(h) To pay negotiation or attorney's fees to the union or its officers or agents as part of the
settlement of any issue in collective bargaining or any other dispute; or

(i) To violate a collective bargaining agreement.

The provisions of the preceding paragraph notwithstanding, only the officers and agents of
corporations, associations or partnerships who have actually participated in, authorized or ratified
unfair labor practices shall be held criminally liable. (Emphasis supplied)

Under this provision, an employer is guilty of unfair labor practice when it fails in its duty to bargain in good
faith.

Although it Is well-settled that the findings of fact of quasi-judicial agencies such as the National Labor Relations
Commission are accorded great respect, this rule does admit exceptions.[45] One of these exceptions is when, as
in this case, the Court of Appeals errs in appreciating the facts. In Culili v. Eastern Telecommunications
Philippines, Inc.:[46]

While it is true that factual findings made by quasi-judicial and administrative tribunals, if
supported by substantial evidence, are accorded great respect and even finality by the courts, this
general rule admits of exceptions. When there is a showing that a palpable and demonstrable
mistake that needs rectification has been committed or when the factual findings were arrived at
arbitrarily or in disregard of the evidence on record, these findings may be examined by the courts.
[47]

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In ruling that respondent did not commit unfair labor practice, the National Labor Relations Commission and the
Court of Appeals failed to consider the totality of respondent's acts, which showed that it violated its duty to
bargain collectively. This constitutes unfair labor practice under Article 259(g) of the Labor Code.

Article 263 of the Labor Code defines the duty to bargain collectively:

ARTICLE 263. [252] Meaning of Duty to Bargain Collectively. — The duty to bargain collectively
means the performance of a mutual obligation to meet and convene promptly and expeditiously in
good faith for the purpose of negotiating an agreement with respect to wages, hours of work and all
other terms and conditions of employment including proposals for adjusting any grievances or
questions arising under such agreement and executing a contract incorporating such agreements if
requested by either party but such duty does not compel any party to agree to a proposal or to make
any concession.

Respondent repeatedly refused to meet and bargain with SONEDCO Workers Free Labor Union, the exclusive
bargaining agent of its rank-and-file employees. In its Position Paper[48] before the National Labor Relations
Commission, respondent cited the different instances when petitioners sent it letters trying to set meetings to
discuss a new collective bargaining agreement.[49] Respondent admitted that it refused to meet with petitioners in
light of the 2002 Collective Bargaining Agreement, which it signed with PACIWU-TUCP, the previous
bargaining representative. It claimed that the 2002 Collective Bargaining Agreement remained in full force and
effect without change until December 31, 2006, despite PACIWU-TUCP losing the May 17, 2002 certification
election to SONEDCO Workers Free Labor Union.[50]

Respondent's argument has no merit. Respondent's reliance on the 2002 Collective Bargaining Agreement as
basis for not negotiating with petitioners is unjustified. The Collective Bargaining Agreement that respondent
invoked had been entered into when a Petition for Certification Election was already filed.

In Associated Trade Unions v. Trajano,[50] this Court ruled on the temporary nature of this type of collective
bargaining agreement:

The Court will not rule on the merits and/or defects of the new CBA and shall only consider the fact
that it was entered into at a time when the petition for certification election had already been filed
by TUP AS and was then pending resolution. The said CBA cannot be deemed permanent,
precluding the commencement of negotiations by another union with the management. In the
meantime however, so as not to deprive the workers of the benefits of the said agreement, it shall be
recognized and given effect on a temporary basis, subject to the results of the certification election.
The agreement may be continued in force if ATU is certified as the exclusive bargaining
representative of the workers or may be rejected and replaced in the event that TUP AS emerges as
the winner.[51] (Emphasis supplied)

Respondent claimed that it refused to bargain with petitioners because the issue of representation was still
pending before the courts. It claimed that when the 2002 Collective Bargaining Agreement expired on December
31, 2006, it had no bargaining agent to deal with as SONEDCO Workers Free Labor Union had filed before the
Department of Labor and Employment a Petition for Certification Election on December 6, 2006, which resulted
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in the absence of a duly elected bargaining representative.[52] Respondent claimed it was only on September 25,
2008 that SONEDCO Workers Free Labor Union was certified by the Department of Labor and Employment as
the exclusive bargaining agent of respondent's rank-and-file employees.[53]

This argument fails to persuade.

The Department of Labor and Employment, in its Order[54] dated May 4, 2007 granting SONEDCO Workers
Free Labor Union's second Petition for Certification Election, illustrated why respondent's argument is untenable:

Let it be noted that based on the results of the certification election conducted in the establishment
on 17 May 2002, Mediator-Arbiter Sumalinog, declared and certified SWOFLU as the sole and
exclusive bargaining agent of the rank-and-file employees of SONEDCO. The office of the
Secretary affirmed SWOFLU's certification in OS-A-6-63-01, and the decision became final and
executory on 15 April 2003. As such, the suspension of the running of the one (1) year period
referred in Section 3(a) Rule VIII was automatically lifted on 15 April 2003. Hence, the one (1)
year bar cannot be used to deny the subject petition. Furthermore, despite PACIWU-TUCP's act of
questioning the Office of the Secretary's affirmation before the Court of Appeals by way of a
petition for certiorari, no restraining order was issued to stay the implementation of the decision.

In other words, as far as this Office is concerned, SWOFLU is the incumbent sole and exclusive
bargaining agent of the rank-and-file employees of SONEDCO. As such, there was actually no
necessity for SWOFLU to file the subject petition, as its representation status remains to be effective
unless challenged by other legitimate labor organizations during the freedom period of the CBA
that was entered into by PACIWU-TUCP and employer SONEDCO.

Incidentally, the Office of the Secretary declared in OS-A-6-63-01 that SWOFLU had the option to
adopt the interim CBA or negotiate with SONEDCO a new CBA. Whether SWOFLU was able to
actually administer the said CBA, or whether it attempted to negotiate with the employer for a new
CBA but was rejected, the issues are already moot and academic by reason of the expiration of the
effectivity of the agreement.[56] (Emphasis supplied)

Respondent's duty to bargain with SONEDCO Workers Free Labor Union as the incumbent bargaining agent is
clear. The last paragraph of Article 268 of the Labor Code states:

ARTICLE 268 [256]. Representation issue in organized establishments. — In organized

establishments, when a verified petition questioning the majority status of the incumbent bargaining
agent is filed before the Department of Labor and Employment within the sixty-day period before
the expiration of the collective bargaining agreement, the Med-Arbiter shall automatically order an
election by secret ballot when the verified petition is supported by the written consent of at least
twenty-five percent (25%) of all the employees in the bargaining unit to ascertain the will of the
employees in the appropriate bargaining unit. To have a valid election, at least a majority of all
eligible voters in the unit must have cast their votes. The labor union receiving the majority of the
valid votes cast shall be certified as the exclusive bargaining agent of all the workers in the unit.
When an election which provides for three or more choices results in no choice receiving a majority
of the valid votes cast, a run-off election shall be conducted between the labor unions receiving the
two highest number of votes: Provided, that the total number of votes for all contending unions is at
least fifty percent (50%) of the number of votes cast.

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At the expiration of the freedom period, the employer shall continue to recognize the majority status
of the incumbent bargaining agent where no petition for certification election is filed. (Emphasis
supplied)

When petitioners held a conference on May 26, 2003, respondent refused to attend.[57] Because respondent failed
to appear in the conference, petitioners wrote their demands in a letter sometime in July 2003. The letter included,
among others, a wage increase of P50.00/day from September 2003 to 2006.[58] Instead of explaining its non-
attendance to the conference or making a counter-offer, respondent replied on August 15, 2003 acknowledging
the receipt and contents of the July 2003 letter but invoking the 2002 Collective Bargaining Agreement as an
excuse not to answer petitioners' demands to negotiate.[59] This is contrary to Article 261 of the Labor Code,
which requires the other party to reply within 10 days from receipt of the written demand:

ARTICLE 261. [250] Procedure in Collective Bargaining. — The following procedures shall be
observed in collective bargaining:

(a) When a party desires to negotiate an agreement, it shall serve a written notice upon the other
party with a statement of its proposals. The other party shall make a reply thereto not later than ten
(10) calendar days from receipt of such notice[.]

This was not respondent's only violation of Article 261. Respondent likewise failed to reply to the collective
bargaining agreement proposal sent by petitioners on August 21, 2007.[60] The September 22, 2007 letter, sent
with the agreement proposal, also went unheeded.[61]

Respondent's reliance on the 2002 Collective Bargaining Agreement is contrary to jurisprudence. In Associated
Labor Unions v. Trajano,[62] this Court explicitly held that the winning union had the option to either continue
the existing collective bargaining agreement or negotiate a new one:

The new CBA negotiated by petitioners whether or not submitted to the MOLE in accordance with
Article 231 of the Labor Code cannot be deemed permanent, precluding commencement of
negotiations by another union with management, considering that it was entered into at a time when
the petition for certification election had already been filed by respondent union. . . . Meantime, this
interim agreement must be recognized and given effect on a temporary basis so as not to deprive the
workers of the favorable terms of the agreement. . . .

If, as a result of the certification election, respondent union or a union other than petitioner union
which executed the interim agreement is certified as the exclusive bargaining representative of the
rank and file employees of respondent company, then, such union may adopt the interim collective
bargaining agreement or negotiate with management for a new collective bargaining agreement[.]
[63] (Citations omitted, emphasis supplied)

As petitioners asked for a P50.00 wage increase, as opposed to the P12.00 wage increase they had been receiving
under the 2002 Collective Bargaining Agreement, petitioners were justified in demanding a renegotiation.
Respondent was remiss in its duty when it repeatedly refused negotiations with petitioners.

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Respondent's refusal is even more unfounded considering that the Labor Secretary's Resolution,[64] which upheld
the result of the May 17, 2002 certification election and declared SONEDCO Workers Free Labor Union as the
exclusive bargaining agent, became final and executory as early as April 15, 2003.[65] Even though there had
been a pending petition for certiorari questioning the election results, no temporary restraining order was issued
to preclude respondent from bargaining with SONEDCO Workers Free Labor Union, the declared incumbent
union.

Even if we consider respondent's refusal to bargain as merely a mistake made in good faith, its subsequent acts
show an attempt to restrict petitioners' negotiating power.

First, the 2002 Collective Bargaining Agreement was done on May 6, 2002, only days before the May 17, 2002
certification election. When respondent and PACIWU-TUCP entered into the 2002 Collective Bargaining
Agreement, they had been aware that a certification election was going to be conducted in a few days. In pushing
through with negotiations instead of waiting for the outcome of the election, respondent risked needing to
renegotiate with a new union if PACIWU-TUCP loses. It cannot, thus, invoke the hastily concluded 2002
Collective Bargaining Agreement as an excuse not to bargain with petitioners. If respondent had truly intended to
bargain in good faith, it could have easily waited a few more days to know the result of the certification election.

Second, when the 2002 Collective Bargaining Agreement expired in December 2006, the Labor Secretary's
Resolution declaring SONEDCO Workers Free Labor Union as the bargaining agent of respondent's rank-and-file
employees was already final and executory. Respondent's initial basis for refusal to bargain had expired, and since
no temporary restraining order was issued, nothing was legally preventing respondent from negotiating a new
collective bargaining agreement with petitioners. That it chose to refuse negotiations and instead entered into an
agreement with its employees to essentially waive negotiations for 2007 and 2008 betrays its intention of limiting
petitioners' bargaining power.

The 2007 waiver provided, in part:

In the event that a subsequent CBA is negotiated between Management and Union, the new CBA
shall only be effective January 1, 2008.[66]

The 2008 waiver provided, in part:

Sa panahon na kung saan may CBA na maisasara sa pagitan ng Management at Unyon, ito ay
magiging epektibo lamang Simula January l, 2009.[67]

The wording of the waivers shows a clear attempt to limit petitioners' bargaining power by making them waive
the negotiations for 2007 and 2008. In stipulating that the collective bargaining agreement that would be entered
into would only be effective the year following the 2008 waiver, respondent limited when the collective
bargaining agreement could be deemed effective. Tn other words, respondent asked petitioners to forego any
benefits they might have received under a collective bargaining agreement in exchange for the company-granted
benefits.

Both the National Labor Relations Commission and the Court of Appeals regarded the incentives as a
magnanimous move because it gave the employees a P16.00 wage increase, P4.00 more than the P12.00 increase
under the 2002 Collective Bargaining Agreement. However, respondent's claim of benevolence falls short: the

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wage increase proposed by petitioners in 2007 was P50.00. If a collective bargaining agreement had been
concluded in 2007, employees who signed the waivers would have lost the chance to receive P34.00 wage
increase for that year.

Lastly, when the 2007 waiver was circulated, respondent already had a copy of petitioners' agreement proposal.
Respondent was aware that petitioners asked for a P50.00 wage increase. More importantly, the last bar
preventing respondent from recognizing SONEDCO Workers Free Labor Union as the bargaining agent has been
resolved by the time it issued the waivers. The Petition for Certiorari relative to the May 17, 2002 certification
election was denied with finality by this Court on July 11, 2007.[68] There was no reason to doubt that
SONEDCO Workers Free Labor Union was the sole and exclusive bargaining representative. If respondent did
indeed act in good faith, it would have undergone agreement negotiations with petitioners. However, respondent
incessantly refused to meet with petitioners to discuss the agreement proposal even after petitioners sent their
September 22, 2007 letter.[69] Instead of negotiating the proposed P50.00 wage increase, respondent granted a
P16.00 wage increase on the condition that if a collective bargaining agreement was to be signed, it would only
be effective the succeeding year. In effect, respondent hindered petitioners' bargaining power when it made them
waive the bargaining efforts for 2007 and 2008.

II

The National Labor Relations Commission did not err in granting the benefits for 2007 and 2008 to the
employees who did not sign the waiver.

After SONEDCO Workers Free Labor Union was again declared as the exclusive bargaining representative in the
August 20, 2008 certification election, the 2009 Collective Bargaining Agreement was created to cover 2009 to
2013.[70] Since the 2009 Collective Bargaining Agreement did not include the years 2007 and 2008, the alleged
purpose of the waivers, which was to prevent double compensation, was already served.[71] It would be unfair for
the employees to still not receive the benefits for 2007 and 2008 simply because they refused to sign a waiver that
was already moot.

However, there is no need for the continuation of the wage increase for 2007 and 2008 since the 2009 Collective
Bargaining Agreement contains wage increase provisions for 2009 to 2013. As explained in Samahang
Manggagawa sa Top Form Manufacturing v. National Labor Relations Commission,[72] if a proposal is not
printed in the collective bargaining agreement, it cannot be demanded:

The CBA is the law between the contracting parties — the collective bargaining representative and
the employer-company. Compliance with a CBA is mandated by the expressed policy to give
protection to labor, hi the same vein, CBA provisions should be "construed liberally rather than
narrowly and technically, and the courts must place a practical and realistic construction upon it,
giving due consideration to the context in which it is negotiated and purpose which it is intended to
serve." This is founded on the dictum that a CBA is not an ordinary contract but one impressed with
public interest. It goes without saying, however, that only provisions embodied in the CBA should
be so interpreted and complied with. Where a proposal raised by a contracting party does not find
print in the CBA, it is not a part thereof and the proponent has no claim whatsoever to its
implementation.[72] (Citations omitted)

If petitioners wanted the wage increase for 2007 and 2008 to be carried on, the proper recourse would have been
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to demand that this be included in the 2009 Collective Bargaining Agreement.

III

Respondent is liable to pay moral and exemplary damages. In Nueva Ecija Electric Cooperative, Inc. v. National
Labor Relations Commission:[73]

Unfair labor practices violate the constitutional rights of workers and employees to self-
organization, are inimical to the legitimate interests of both labor and management, including their
right to bargain collectively and otherwise deal with each other in an atmosphere of freedom and
mutual respect; and disrupt industrial peace and hinder the promotion of healthy and stable labor-
management relations. As the conscience of the government, it is the Courts sworn duty to ensure
that none trifles with labor rights.

For this reason, we find it proper in this case to impose moral and exemplary damages on private
respondent.[74]

WHEREFORE, the Petition is GRANTED. The Decision of the Court of Appeals dated January 30, 2015 and
the Resolution dated July 27, 2015 in CA-GR. SP No. 05950 are SET ASIDE. Respondent Universal Robina
Corporation. Sugar Division - Southern Negros Development Corporation is GUILTY of unfair labor practice
and is ORDERED to pay each of the petitioners the wage increase of P16.00 for the years 2007 and 2008; and to
pay SONEDCO Workers Free Labor Union moral damages in the amount of P100,000.00; and exemplary
damages in the amount of P200,000.00.

SO ORDERED.

Carpio, (Chairperson), Del Castillo, and Mendoza, JJ., concur.

Brion, J., on leave.

[1] Rollo, pp. 15-59. The Petition was filed under Rule 45 of the Rules of Court.

[2] Id. at 61-70. The Decision, docketed as CA-G.R. SP No. 05950, was penned by Associate Justice Renato C.

Francisco and concurred in by Associate Justices Gabriel T. Ingles and Pamela Ann Abella Maxino of the
Eighteenth Division, Court of Appeals, Cebu City.

[3] Id. at 73-75. The Resolution was penned by Associate Justice Renato C. Francisco and concurred in by

Associate Justices Gabriel T. Ingles and Pamela Ann Abella Maxino of the Eighteenth Division, Court of
Appeals, Cebu City.

[4] Id. at 70.

[5] Id. at 63.

[6] Id. at 157.

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[7] Id. at 62-63.

[8] Id. at 144.

[9] Id. at 148.

[10] Id. at 176.

[12] Id. at 153, Letter of SONEDCO dated August 15, 2003.

[13] Id. at 177-179.

[14] Id. at 64.

[15] Id. at 24.

[16] Id. at 25.

[17] Id. at 207.

[18] Id. at 64.

[19] Id.

[20] Id. at 25.

[20] Id. at 64.

[21] Id.

[22] Id. at 69.

[23] Id.at 64-65.

[24] Id.

[25] Id. at 107-124. The Decision was penned by Labor Arbiter Romulo P. Sumalinog.

[26] Id. at 120.

[27] Id. at 93-104. The Decision dated October 29, 2010, penned by Commissioner Aurelio D. Menzon and

concurred in by Commissioners Julie C. Rendoque and Violeta Ortiz-Bantug.

[29] Id. at 99.

[30] Id. at 103.

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[31] Id. at 61-70.

[32] Id. at 15-59.

[33] Id. at 273.

[34] Id. at 284-293.

[35] Id. at 28.

[36] Id. at 28-29.

[37] Id. at 30.

[38] Id. at 34.

[39] Id.

[40] Id. at 284-292, Comment.

[41] Id. at 288.

[42] Id. at 289.

[43] Id.

[44] Id. at 67-68.

[45] Culili v. Eastern Telecommunications Philippines, Inc., 657 Phil. 342, 361 (2011) [Per J. Leonardo-De Castro,

First Division].

[46] 657 Phil. 342 (2011) [Per J. Leonardo-De Castro, First Division].

[47] Id. at 361.

[48] Rollo, pp. 198-236.

[49] Id. at 202.

[50] Id. at 203.

[50] 245 Phil. 293 (1988) [Per J. Cruz, First Division].

[51] Id. at 299.

[52] Rollo, p. 205.

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[53] Id.

[54] Id. at 256-262.

[56] Id. at 260-261.

[57] Id. at 150.

[58] Id. at 150-152.

[59] Id. at 153.

[60] Rollo, p. 187.

[61] Id. at 187-188.

[62] 254 Phil. 46 (1989) [Per J. Paras, Second Division].

[63] Id. at 55.

[64] Rollo, pp. 144-147.

[65] Id. at 148.

[66] Rollo p. 186.

[67] Id. at 197.

[68] Id. at 176.

[69] Id. at 187-188.

[70] Id. at 69.

[71] Id.

[72] 356 Phil. 480 (1998) [Per J. Romero, Third Division].

[72] Id. at 490-491.

[73] 380 Phil 44-60 (2000) [Per J. Quisumbing, Second Division].

[74] Id. at 57-58.

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