VOL.

237,OCTOBER14,1994 621
AssociatedLaborUnionsvs.LetrondoMontejo
*
G.R.No.111988.October14,1994.

ASSOCIATED LABOR UNIONS (ALU)TUCP in behalf of its

members at AMS FARMING CORPORATION, petitioner, vs.
VOLUNTARY ARBITRATOR ROSALINA LETRONDO
MONTEJOandAMSFARMINGCORPORATION,respondents.

Labor Relations Voluntary Arbitration Interpretation of CBA

Voluntary Arbitrator denied members of the petitioner union substantial
justiceasaresultoferroneousinterpretationoftheCBA.Weholdthatit
is and that, in denying petitioners claim, respondent Voluntary Arbitrator
denied members of petitioner union substantial justice as a result of her
erroneousinterpretationoftheCBA,therebyjustifyingjudicialreview.
Local Government Administrative Law The Sangguniang Kabataan
(SK)ispartofthelocalgovernmentstructure.TheSangguniangKabataan
(SK)ispartofthelocalgovernmentstructure.TheLocalGovernmentCode
(Rep. Act No. 7160) creates in every barangay a Sangguniang Kabataan
composed of a chairman, seven (7) members, a secretary and a treasurer.
The chairman and the seven members are elected by the Katipunan ng
Kabataan, which is composed of citizens of the Philippines residing in the
barangayforatleastsix(6)months,whoarebetweentheagesof15and21
andwhoareregisteredasmembers.ThechairmanoftheSKisanexofficio
member of the Sangguniang Barangay with the same powers, duties,
functions and privileges as the regular members of the Sangguniang
Barangay. The president of the Pederasyon ng mga Sangguniang Kabataan,
which is composed of the SK chairmen of the sangguniang kabataan of the
barangays in the province, city, or municipality, is an exofficio member of
the Sangguniang Panlalawigan, Sangguniang Panlungsod, and Sangguniang
Bayan.
Same Same The election for members of the SK may properly be
considered local election.As the Solicitor General points out, the
election for members of the SK may properly be considered a local
electionwithinthemeaningofArt.VII,sec.3oftheCBAandthedayon
whichitisheldtobeaholiday,therebyentitlingpetitionersmembersatthe
AMSFarmingCorp.tothepaymentofholidayonsuchday.

_______________

*SECONDDIVISION.
 622

622 SUPREMECOURTREPORTSANNOTATED

AssociatedLaborUnionsvs.LetrondoMontejo

Same Same December 4, 1992 was declared as a special day

holiday throughout the country on the occasion of the Sangguniang
Kabataan Elections.It is not true that December 4, 1992 was not a
nonworkingholiday.Itwasanonworkingholidayandthiswasannouncedin
the media. In Proclamation No. 118 dated December 2, 1992 President
Ramos declared the day as a special day throughout the country on the
occasion of the Sangguniang Kabataan Elections and enjoined all local
governmentunitsthroughtheirrespectiveChiefLocalExecutives[to]extend
all possible assistance and support to ensure the smooth conduct of the
generalelections.
SameSameA special day is a special holiday, as provided by
theAdministrativeCodeof1987.Aspecialdayisaspecialholiday,as
provided by the Administrative Code of 1987. On the other hand, the term
general elections means, in the context of SK elections, the regular
electionsformembersoftheSK,asdistinguishedfromthespecialelections
forsuchofficers.
SameSameSuch election is a regular national election and the day
setforitsholding,aholiday.Moreover,thefactthatonlythosebetween15
and21takepartintheelectionformembersoftheSKdoesnotmakesuch
election any less a regular local election. The Constitution provides, for
example,forthesectoralrepresentativesintheHouseofRepresentativesof,
among others, women and youth. Only voters belonging to the relevant
sectors can take part in the election of the representatives. Yet it cannot be
deniedthatsuchelectionisaregularnationalelectionandthedaysetforits
holding,aholiday.
Same Same Labor Law Holiday Pay Interpretation of CBA
December 4, 1992 was holiday for which holiday pay should be paid by
respondentemployer.Consequently,whetherinthecontextoftheCBAor
the Labor Code, December 4, 1992 was a holiday for which holiday pay
shouldbepaidbytherespondentemployer.

PETITIONforcertioraritosetasideadecisionofaVoluntary
Arbitrator.

ThefactsarestatedintheopinionoftheCourt.
Seno,MendozaandAssociatesforpetitioner.
Castro,Enriquez,Carpio,GuillenandAssociatesforprivate
respondent.

623

VOL.237,OCTOBER14,1994 623
AssociatedLaborUnionsvs.LetrondoMontejo
MENDOZA,J.:

ThisisapetitionforcertioraritosetasidethedecisiondatedJuly19,
1993ofpublicrespondentVoluntaryArbitratorRosalinaLetrondo
Montejo insofar as it dismissed the claim of petitioners members
for holiday pay for December 4, 1992, which had been declared a
specialdayfortheholdingofSangguniangKabataanelection.
Thefactsareasfollows:
On December 27, 1990, petitioner Associated Labor Unions
(ALU)TUCP and private respondent AMS Farming Corporation
enteredintoafiveyearCollectiveBargainingAgreementbeginning
November 1, 1990 and ending midnight of October 31, 1995. The
CBA covers the regular dailypaid rankandfile employees of
private respondent AMS Farming Corp. at Sampao, Kapalong,
DavaodelNorteandMagatos,Asuncion,DavaodelNorte.
Art.VII,sec.3oftheCBAprovides:

New Year, Maundy Thursday, Good Friday, Araw ng Kagitingan, 1st of

May,12thofJune,ArawngDabaw,4thofJuly,LastSundayofAugust,1st
of November, 30th of November, 25th of December, 30th of December and
thedaysdesignatedbylawforholdingreferendumandlocal/nationalelection
shall be considered paid regular holidays. Consequently, they shall receive
their basic pay even if they do not work on those days. Any employee
required to work on these holidays shall be paid at least TWO HUNDRED
PERCENT (200%) of his daily wage. Covered employees performing
overtime work on these days shall be entitled to another THIRTY
PERCENT(30%)overtimepay.Itisunderstoodhowever,thatanycovered
employeewhoshallbeabsentformorethanonedayimmediatelypreceding
thepaidholidayshallnotbeentitledtotheholidaypay.

The President of the Philippines declared December 4, 1992 a

specialdayfortheholdingofelectionforSangguniangKabataan
(SK) throughout the nation. Employees covered by the CBA
subsequentlyfiledclaimsforthepaymenttothemofholidaypayfor
that day. Private respondent, however, refused their claims on the
groundthatDecember4,1992wasnotaregularholidaywithinthe
contemplationoftheCBA.

624

624 SUPREMECOURTREPORTSANNOTATED
AssociatedLaborUnionsvs.LetrondoMontejo

Thematterwaseventuallysubmittedtovoluntaryarbitration.Atthe
conference held on February 19, 1993, the parties agreed, among
otherthings,tosubmitthefollowingissue:

Is the Sangguniang Kabataan Election Day considered a regular holiday for

purposesofsaidSection3,ArticleVIIoftheCBA?

In connection with this issue, they agreed that the Sangguniang

KabataanElectionDaywasaholidayasdecreedbythePresidentof
thePhilippines.
Thepartiespresentedpositionpapersandthereaftersubmittedthe
caseforresolution. 1
On July 19, 1993, public respondent rendered an Award in
which, while holding employees who had become regular
employees on November 1, 1990 entitled to salary increases under
the CBA, nonetheless dismissed their claim for holiday pay for
December 4, 1992 on the ground that the Sangguniang Kabataan
electionbyanystretchoftheimaginationcannotbeconsideredasa
localelectionwithinthemeaningofCBAbecausenotallpeoplecan
voteinthesaidelectionbutonlythequalifiedyouths.Accordingto
theVoluntaryArbitrator,Alocalelectionisgenerallyunderstood
to mean the election by the people of their local leaders like the
governors, mayors, members of the provincial and municipal
councils,andbarangayofficials.Andwhenalocalelectionisheld,
thedayisdeclaredanonworkingholiday.Thisisourexperiencein
local and national elections. In the case of the Sangguniang
Kabataan (SK) elections, it was a working holiday. Except for the
qualifiedyouthfulvoters,noteverybodynoticedsaidelectionasnot
everyonevotedinthesaidelection.
Hence this petition, the only issue in which is whether the
electionfortheSangguniangKabataanonDecember4,1992wasa
local/nationalelectionwithinthecontemplationofArt.VII,sec.3
oftheCBAsoastoentitlepetitionersmembers,whoareemployed
at the AMS Farming Corp. to the payment of holiday pay for that
day.
We hold that it is and that, in denying petitioners claim,
respondentVoluntaryArbitratordeniedmembersofpetitioner

_______________

1Rollo,p.22.

625

VOL.237,OCTOBER14,1994 625
AssociatedLaborUnionsvs.LetrondoMontejo

unionsubstantialjusticeasaresultofhererroneousinterpretationof
2
theCBA,therebyjustifyingjudicialreview.
First. The Sangguniang Kabataan (SK) is part of the local
government structure. The Local Government Code (Rep. Act No.
7160)createsineverybarangayaSangguniangKabataancomposed 3
ofachairman,seven(7)members,asecretaryandatreasurer. The
chairman and the seven members are elected by the Katipunan ng
Kabataan,whichiscomposedofcitizensofthePhilippinesresiding
inthebarangayforatleastsix(6)months,whoarebetweentheages
4
of15and21andwhoareregisteredasmembers. Thechairmanof
theSKisanexofficio member of the Sangguniang Barangay with
the same powers, duties, functions and privileges
5
as the regular
members of the Sangguniang Barangay. The president of the
Pederasyon ng mga Sangguniang Kabataan, which is composed of
the SK chairmen of the sangguniang kabataan of the barangays in
the province, city, or municipality, is an ex officio member of the
Sangguniang Panlalawigan,
6
Sangguniang Panlungsod, and
SangguniangBayan.
Hence, as the Solicitor General points out, the election for
members of the SK may properly be considered a local election
within the meaning of Art. VII, sec. 3 of the CBA and the day on
which it is held to be a holiday, thereby entitling petitioners
members at the AMS Farming Corp. to the payment of holiday on
suchday.
Second.TheVoluntaryArbitratorheld,however,thattheelection
formembersoftheSKcannotbeconsideredalocalelectionasthe
election for Governors, Vice Governors, Mayors and Vice Mayors
and the various local legislative assemblies (sanggunians) because
theSKelectionisparticipatedinonlybytheyouthwhoarebetween
theagesof15and21andforthisreasonthedayisnotanonworking
holiday.
To begin with, it is not true that December 4, 1992 was not a
nonworkingholiday.Itwasanonworkingholidayandthiswas

_______________

2Maranaw Hotels and Resorts Corporation v. Court of Appeals, et al., G.R. No.

103215,November6,1992,215SCRA501,505.
3423(a).

4Id.,424.

5Id.,430.

6Id.,438(a).

626

626 SUPREMECOURTREPORTSANNOTATED
AssociatedLaborUnionsvs.LetrondoMontejo
7
announcedinthemedia. InProclamationNo.118datedDecember
2, 1992 President Ramos declared the day as a special day
throughout the country on the occasion of the Sangguniang
Kabataan Elections and enjoined all local government units
through their respective Chief Local Executives [to] extend all
possibleassistanceandsupporttoensurethesmoothconductofthe
generalelections.
A special day is a special
8
holiday, as provided by the
AdministrativeCodeof1987. Ontheotherhand,thetermgeneral
elections means, in the context of SK elections, the regular
electionsformembersoftheSK,asdistinguishedfromthespecial
9
electionsforsuchofficers.
Moreover,thefactthatonlythosebetween15and21takepartin
theelectionformembersoftheSKdoesnotmakesuchelectionany
lessaregularlocalelection.TheConstitutionprovides,forexample,
for the sectoral representatives in the House of Representatives of,
10
among others, women and youth. Only voters belonging to the
 10
among others, women and youth. Only voters belonging to the
relevantsectorscan take part in the election of the representatives.
Yet it cannot be denied that such election is a regular national
electionandthedaysetforitsholding,aholiday.
Third. Indeed, the CBA provision in question merely reiterates
thelegalprovisiononpaidholidays.Thus,theLaborCodeprovides:

ART.94.Righttoholidaypay.(a)Everyworkershallbepaidhisregular
dailywageduringregularholidaysexceptinretailandserviceestablishments
regularlyemployinglessthanten(10)workers
(b) The employer may require an employee to work on any holiday but
such employee shall be paid a compensation equivalent to twice his regular
rateand
(c)AsusedinthisArticle,holidayincludes:NewYearsDay,Maundy
Thursday, Good Friday, the ninth of April, the first of May, the twelfth of
June, the fourth of July, the thirtieth of November, the twentyfifth and the
thirtiethofDecember,andthedaydesignatedby

_______________

7E.g.,ExceptinManila,BulacanAllsSetforSKelections,ThePhilippineStar,pp.1&

12,Dec.3,1992.
8Bk.1,Ch.7,26(2).

9Cf.Yiguezv.COMELEC,30SCRA328,331(1969).

10CONST.,ART.VI,5(1)(2).

627

VOL.237,OCTOBER18,1994 627
Peoplevs.Rejano

lawforholdingageneralelection.

As already explained, the phrase general election means regular

localandnationalelections.
Consequently, whether in the context of the CBA or the Labor
Code, December 4, 1992 was a holiday for which holiday pay
shouldbepaidbyrespondentemployer.
WHEREFORE, the decision dated July 19, 1993 of public
respondent Rosalina LetrondoMontejo, insofar as it dismissed
petitioners claim for holiday pay, is SET ASIDE and private
respondentisORDEREDtopaypetitionersmemberstheirregular
holidaypayforDecember4,1992inaccordancewithArt.VII,sec.
3oftheCollectiveBargainingAgreement.
SOORDERED.

Narvasa(C.J.,Chairman),Padilla,RegaladoandPuno,JJ.,
concur.

Judgmentsetaside.

Note.Avoluntaryarbitratormayordergrantofbenefitsaspart
of his authority to interpret a CBA. (Davao Integrated Port
 StevedoringServicesvs.Abarquez,220SCRA197[1993])

o0o

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