Republic of the Philippines

Department of Labor and Employment

NATIONAL LABOR RELATIONS COMMISSION
Regional Arbitration Branch XII
Koronadal City

__________________ NLRC CASE NO. RAB (Satellite)

Complainant. ________________

- versus –

__________________
Respondents/s.
x---------------------------------------------/

VERIFIED POSITION PAPER

COME NOW the respondents unto this Honorable Commission, most

respectfully file this Verified Position Paper for the Respondents by averring
THAT:

I
PREFATORY STATEMENT

A cooperative is an autonomous and duly registered association of

persons, with a common bond of interest, who have voluntarily joined
together to achieve their social, economic and cultural needs and
aspirations by making equitable contributions to the capital required,
patronizing their products and services and accepting a fair share of risks
and benefits of the undertaking in accordance with the universally accepted
cooperative principles.1

Article XII, Section 15 of the 1987 Philippine Constitution

expressly provides that “The Congress shall create an agency to

1
‘What Is a Cooperative’, Frequently Asked Questions <https://cda.gov.ph/frequently-asked-questions/>.

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promote the viability and growth of cooperatives as instruments for
social justice and economic development.”

Furthermore, Section 2 of Republic Act No. 6938 explicitly states

that “It is the declared policy of the State to foster the creation and
growth of cooperatives as a practical vehicle for prompting self-
reliance and harnessing people power towards the attainment of
economic development and social justice. The State shall encourage
the private sector to undertake the actual formation and organization
to cooperatives and shall create an atmosphere that is conducive to
the growth and development of these cooperatives.

Towards this end, the Government and all its branches, subdivisions,
instrumentalities and agencies shall ensure the provision of technical
guidance, financial assistance and other services to enable said
cooperatives to develop into viable and responsive economic
enterprises and thereby bring about a strong cooperative movement
that is free from any conditions that might infringe upon the
autonomy or organizational integrity of cooperatives.”

xxx

Moreover, Section 3 of Republic Act No. 6938 further points out

that the goal of a cooperative is to “achieve a lawful common social or
economic end, making equitable contributions to the capital required
and accepting a fair share of the risks and benefits of the undertaking
in accordance with universally accepted cooperative principles.”

It must be emphasized that the 1987 Philippine Constitution as well

as the national laws clearly mandate all government agencies to provide a
space for cooperatives to be sustainable and become responsive economic
enterprises. The State must ensure that the goal of cooperatives which is to
achieve lawful social and economic end be attained. Additionally, the State

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together with all its instrumentalities should be conduits to elicit firm
cooperative movement that is not affected by factors that might violate the
independence and integrity of cooperatives.

II
THE PARTIES

1. ____________________, is of legal age, married and a resident of

__________________________.

2. ________________________, represented by its Chairperson,

________________________, a cooperative duly registered with the
Cooperative Development Authority, with office address at
____________________________.

III

STATEMENT OF FACTS

1. The complainant filed a case before the Department of Labor and

Employment (DOLE), Regional Office No. XII, __________________
Field Office for non-payment of minimum wage and payment of
money claims.

2. On August 3, 2021, both parties appeared before the

___________________ for a conference, applying the process of
Single-Entry Approach (SEnA).

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 3. In the said conference, the complainant was given time to present his
concerns against the respondent on wage differential and unpaid
social welfare benefits.

4. On ______________________, the National Labor Relations

Commission (NLRC), Regional Arbitration Branch XII issued an Order
directing the respondent cooperative to file a Verified Position Paper.

IV

ISSUE

Whether or not the respondent cooperative is guilty of non-payment of

minimum wage and non-payment of social welfare benefits.

DISCUSSIONS/ARGUMENTS

On October 16 and 29, 2019, two (2) strong earthquakes struck the
Province of Cotabato. On October 31, 2019, another earthquake occurred.
These calamities caused displacement, as well as damage to homes,
schools, and infrastructure. 2 Due to the impact of these earthquakes, the
respondent suffered severe economic loss.

Unfortunately, another catastrophe occurred on calendar years

2020 and 2021. President Rodrigo Duterte declared and extended the
state of calamity in the Philippines due to Corona Virus Disease 2019
(Covid-19).3 The Covid-19 pandemic lockdown had an immediate and
2
‘Philippines: Mindanao Earthquake Final Report N° MDRPH036’, reliefweb (23 June 2021)
<https://reliefweb.int/report/philippines/philippines-mindanao-earthquake-final-report-n-mdrph036>.
3
Extending the Period of the State of Calamity throughout the Philippines Due to Corona Virus Disease 2019
Declared under Proclamation No. 929, S. 2020 (n 2).

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negative impact on employers as well as the employees. 4 It is reported
that employees in the private sector experienced significant pressures on
their financial security with almost half of having either their hours of work
reduced or their pay cut. 5

As the lead agency in the development and regulation of

cooperatives, the Cooperative Development Authority (CDA) conducted
an online survey to all types and categories of reporting cooperatives in
the country.6 The survey aims to ascertain the effect of COVID-19
pandemic to their business operation and their provision of services to the
members, as well as to the community. 7 The only survey also tackled the
challenges that the cooperative will face under the “new normal”. 8

With One Thousand Two Hundred Forty-Five (1245) cooperatives

as respondents, the online survey of the Cooperative Development
Authority (CDA) shows that 91.7% of the respondents’ business operation
were affected by the outbreak or pandemic. 9

In addition, according to the said online survey of the Cooperative

Development Authority (CDA), the problems that almost all cooperatives
encountered in this pandemic are decline in the productivity through work
from home, reduction of working hours, lack of cash for operations,
reduction of employees, and decline in the marketing transactions of the
cooperative products. 10 Most cooperatives also experienced decrease in
production and some businesses were closed. 11

4
‘The Philippines and COVID-19: Impact on the Private Sector’, UN Women Asia and the Pacific (2020)
<https://asiapacific.unwomen.org/en/digital-library/publications/2020/08/the-philippines-and-covid-19-impact-
on-the-private-sector>.
5
Ibid.
6
‘EFFECT OF COVID-19 AMONG COOPERATIVES’, Republic of the Philippines Cooperative Development Authority.
7
Ibid.
8
Ibid.
9
Ibid.
10
Ibid.
11
Ibid.

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 Having encountered several problems in the operation and
marketing of the cooperative, some measures were undertaken by the
cooperatives to guarantee the continuous delivery of services to its
members.12 In fact, the cooperative extended the grace periods and
moratoriums to the loan payment of the members. 13 Also, the
cooperatives aid its members to avail assistance from the government
like the Department of Labor and Employment (DOLE), Social Security
System (SSS), and other. 14

All the above-mentioned trials were experienced and hurdled by the

respondent as well. Due to the effects of this unprecedented COVID-19
pandemic there is a significant decline in the marketing transactions of its
products and the lack of cash for the operations of the respondent is
substantial.

The respondent is doing its best to cope and to recover from the
effects of the pandemic to its business, however, it would just need time
and hopefully the cooperation of all its members. Also, a significant
amount of asset of the respondent is also used for health and sanitation
of the members and all its premises. This is in consonance to the
minimum health protocols imposed by the local and the national
government and to help combat the covid-19 virus.

In the instant case, the complainant alleges that there is a non-

payment of the minimum wage and non-payment of social welfare
benefits committed by the respondent. The respondent avers that this
claim is baseless, unjust and has no leg to stand on.
It must be highlighted that in the case of Jr hauling Services
versus Solamo, G.R. No. 214294, the Supreme Court ruled that “In this
regard, it is a well-established rule that the party-litigant who alleges
the existence of a fact or thing necessary to establish his/her claim
12
Ibid.
13
Ibid.
14
Ibid.

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has the burden of proving the same by the amount of evidence
required by law, which, in labor proceedings, is substantial evidence,
or "such relevant evidence as a reasonable mind might accept as
adequate to support a conclusion.”

Moreover, in the case of Ebuenga versus Southfield Agencies,

Inc., citing Tenazas v. R. Villegas Taxi Transport, 731 Phil. 217, 229
(2014) [Per J. Reyes, First Division]: , the Supreme Court ruled that "It is
an oft-repeated rule that in labor cases, as in other administrative and
quasi-judicial proceedings, 'the quantum of proof necessary is
substantial evidence, or such amount of relevant evidence which a
reasonable mind might accept as adequate to justify a conclusion.'
'[T]he burden of proof rests upon the party who asserts the
affirmative of an issue.”

In the payroll of the complainant, from January 1, 2020 until July 15,
2021, attached herein as Annex 1-1, Annex 1-2, Annex 1-3, Annex 1-4,
Annex 1-5, Annex 1-6, Annex 1-7, Annex 1-8, Annex 1-9, Annex 1-10,
Annex 1-11, Annex 1-12, Annex 1-13, Annex 1-14, Annex 1-15, Annex
1-16, Annex 1-17, Annex 1-18, Annex 1-19, Annex 1-20, Annex 1-21,
Annex 1-22, Annex 1-23, Annex 1-24, Annex 1-25, Annex 1-26, Annex
1-27, Annex 1-28, Annex 1-29, Annex 1-30, Annex 1-31, Annex 1-32,
Annex 1-33, Annex 1-34, Annex 1-35, Annex 1-36 and Annex 1-37, it
can be clearly seen that the respondent provided minimum wage to the
complainant.

The attached payroll serves as evidence that the allegation of the

complainant as to the non-payment of the minimum wage is an utter lie.
The complainant clearly fails to prove his claim and is not substantial to
justify a conclusion or to support his claim.
The complainant further claims non-payment of social welfare
benefits. The respondent appeals to the compassion of this Honorable
Commission, that due to the calamities experienced and still experiencing
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by the cooperative, it is really doing its best to meet all its obligations. In
fact, the respondent already had a meeting with the Social Security System
(SSS), during the last week of October and the respondent made
arrangements with the SSS.

The respondent being a cooperative is not really a money-making

business or its purpose is not to for profit but to serve the economic, social,
cultural and spiritual development of its members. In order to attain this
purpose, the respondent is imploring this Honorable Commission to dismiss
this unfair and unwarranted complaint.

Furthermore, the complainant, instead of helping the cooperative to

recover from the effects of all the catastrophe, the complainant decided to
take money from the cooperative. In the incident report, attached herein as
“Annex 2”, the cashier of the respondent cooperative reported to the
Philippine National Police that the complainant was entrusted by the
respondent to withdraw money in the amount of Two Hundred Twenty
Thousand Pesos (Php 220,000) from the BDO Unibank last July 7, 2021.
However, instead of remitting the whole amount to the cashier of the
respondent cooperative, the complainant only remitted the amount of One
hundred Twenty Thousand Pesos (Php 120,000).

This prompted the respondent cooperative to conduct an

investigation. Currently, every penny matters to the survival and continuous
operation of the cooperative. A criminal act such as this on the part of the
complainant only added to the burden already being hurdled by the
respondent cooperative.

A letter, attached herein as “Annex 3”, addressed to the complainant

was written by the manager of the respondent cooperative. The letter
asked the complainant to cooperate and explain the withdrawal from the
BDO Unibank that transpired last July 7, 2021. Unfortunately, the
complainant, failed to provide a justifiable reason for the theft and non-
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remittance of the amount of One Hundred Thousand Pesos (Php
100,000.00).

From the foregoing facts, it can be seen that the complainant is not
an upstanding member of the cooperative. The complainant failed to prove
by substantial evidence that the respondent is guilty of the allegations.
Despite of all these, the respondent is still willing to sit and have a dialogue
with the complainant, to thresh out all the issues, considering that the
complainant is a member of the respondent cooperative.

It can be gleaned that the actions of the complainant only furthered

the problems and hardships experienced by the respondent cooperative
due to the pandemic. On the other hand, the respondent cooperative is
doing its best to meet all its obligations and to serve its purpose for the
benefit of the members despite of its losses and difficulties cause by this
unprecedented pandemic.

PRAYER

WHEREFORE, premises considered, it is most respectfully prayed of

this Honorable Commission to dismiss the instant complaint for being
baseless and utter lack of merit.

Other reliefs just and equitable under the premises are likewise
prayed for.

Respectfully submitted. __________________, Philippines,

November 14, 2021.

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