New Pacific Timber Supply Company vs.

NLRC

G.R. No. 124224

March 17, 2000

FACTS: 

The National Federation of Labor (NFL) was the sole and exclusive bargaining
representative for the rank and file employees of petitioner. NFL started to
negotiate for better terms and conditions of employment; which were met
with resistance by Petitioner Company. The NFL filed a complaint for ULP on
the ground of refusal to bargain collectively. Labor Arbiter (LA) issued an
order declaring the company guilty of ULP and ordering the CBA proposals
submitted by the NFL as the CBA between parties. Later, 186 of private
respondents claiming they were wrongfully excluded from the benefits under
the CBA filed a petition for relief. Petitioner asserts that private respondents
are not parties to the agreement and may not claim benefits thereunder. As
for the CBA, petitioner maintains that the force and effect of the CBA’s terms
are limited to only three years and cannot extend to terms and conditions
which ceased to have force and effect.

ISSUES:

1. W/N the terms of an existing CBA as to its economic provisions can be

extended beyond the period stipulated therein, even beyond the three year
period prescribed by law, in the absence of a new agreement.

2. W/N the rank and file employees hired after the term of the CBA,
considering their subsequent membership in the bargaining unit, are parties
to the agreement and may claim benefits thereunder.
HELD: 

1. Yes. It is clear from Art. 253 that until a new CBA has been executed by
and between the parties; they are duly bound to keep the status quo and to
continue in full force and effect the terms and conditions of the existing
agreement. In the case at bar, no new agreement was entered between the
parties pending appeal of the decision in the NLRC. Consequently, the
employees from to the year 1985 (after expiration of the CBA) onwards
would be deprived of a substantial amount of monetary benefits if the terms
and conditions of the CBA were not to remain in force and effect which runs
counter to the intent of the Labor Cod to curb labor unrest and promote
industrial peace.

2. Yes. When a CBA is entered into by the union representing the employees
and the employer, even the non-union members are entitled to the benefits
of the contract. A laborer can claim benefits from a CBA entered into the
company and the union of which he is a member at the time of the
conclusion of the agreement even after he has resigned from said union.
Therefore, the benefits under the CBA should be extended to those who only
became such after it expired; to exclude them would constitute undue
discrimination.