Pepsi-Cola Products Phil, Inc. v CA a.

PD 1083 does not specifically mention Dipolog as one of the

Nov 24, 2004 | Callejo, Sr, J | Petition for review | Dissolution places where Muslim holidays are observed, it is nevertheless a
part of Zamboanga del Norte and the autonomous region in
Petitioner: Pepsi-Cola Products Philppines, Inc. Mindanao where such Muslim holidays are observed.
Respondent: PCEWU (Union of PCDP (Pepsi-Cola Distributors of the Phil)) b. PD 1083 only provided for 5 days however, the Regional
legislative assembly for Region 12 had passed legislation
Summary: PCEWU had claims against PCDP for OT pay. They went to trial. providing for 3 more
When it was in the NLRC, both parties filed a MR. Pending resolution of said c. However, employees were not able to prove a similar
motions, PCDP was transferred to PCPPI. NLRC then dismissed the complaint legislation for region 9 hence Muslim holidays are not
because of the dissolution of the PCDP. SC said that it was wrong for NLRC to applicable to them
dismiss it because it still had 3 years pursuant to Sec. 122 5. Respondents appealed to NLRC. NLRC affirmed w/ modifications
a. Respondent had been giving OT pay during Muslim holidays. It
has been a company policy.
Doctrine: The termination of the life of a corporate entity does not by itself
b. 3 holidays considered by ELA aside from the 5 given in PD
cause the extinction or diminution of the rights and liabilities of such entity. If 1083 were not customarily observed by Filipino Muslims
the three year extended life has expired without a trustee or receiver having hence, these should not be included in the computation
been expressly designated by the corp, within that period, the BoD (or trustees) c. OT pay only for rank-and-file
itself, may be permitted to so continue as “trustees” by legal implication to 6. PCDP filed MR. The Employees also filed MR
complete the corporate liquidation 7. Pending resolution of said motions, ownership of Pepsi-Cola
bottling plants was transferred to Petitioner Products Philippines,
Inc. (PCPPI)
a. NLRC directed the parties to file their respective pleadings
FACTS:
concerning the respondent’s existence as a corporate entity
1. Pepsi-Cola Products Phil., Inc. Employees and Workers Union (PCEWU)
b. PCDP alleged that it had ceased to exist and that it is winding
is a labor union of the employees of Pepsi-Cola Distributors of the Phil.
up
(PCDP). PCEWU filed a complaint against PCDP for payment of
8. NLRC dismissed the complaint of PCEWU for the reason that, with
overtime services rendered by 53 members who were employed as
the cessation and dissolution of the corp existence of the PCDP,
salesmen, warehousemen, truck helpers, route salesmen, route sales
rendering any judgment is incapable of execution
workers, distributors, etc, on the 8 days duly-designated as Mulim
9. CA: annulled the judgment of the NLRC. CA declared that PCDP was still
holidays for calendar year 1985, in their respective places of
in existence when the complaint was filed, and that the supervening
assignment, namely: Iligan City, Tubod, Lanao Del Norte and Dipolog
dissolution of the corp. did not warrant the dismissal of the complaint.
2. PCEWU alleged that in the previous years they had been paid OT pay
Every corp is given 3 years to wind up its affairs. CA reinstated the
for the 8 Muslim holidays. PCEWU appended to its position paper the ff
decision of ELA
a photocopy of the applicable provisions of PD 1083; a certification
10. Petitioner PCCPI now filed this instant petition
from the Regional Autonomous Gov’t of Region 12-A, attesting to the 8
Muslim holidays observed in the said region in calendar year 1985; and
ISSUE: WON the complaint should be dismissed because PCDP was acquired by
the individual computation of the OT claim of each of the worker.
petitioner here – NO
3. PCDP maintained that there were only 5 Muslim holidays under the
Muslim Code. And that under the law the cities of Cagayan de Oro and
RULING: Partially Granted. The NLRC is directed to resolve, with reasonable
Dipolog are not included in observing the holidays and such were
dispatch, the motions for reconsideration of the parties of its decision.
applicable to Muslims. Moreover, assuming that they are entitled, only
rank-and-file employees and not the managerial employees should
RATIO:
benefit from it.
4. Executive Labor Arbiter (ELA) rendered a decision in favor of PCEWU
1. CA is correct. Sec. 122 of the Corp Code, a corp whose corporate
ordering PCDP to pay claims of its workers
existence is terminated in any manner continues to be a body corporate
for 3 years after its dissolution for purposes of prosecuting and
 defending suits by and against it and to enable it to settle and close its
affairs, culminating in the disposition and distribution of its remaining
assets. It may, during the 3 year term, appoint a trustee or a receiver
who may act beyond that period.
2. The termination of the life of a corporate entity does not by itself cause
the extinction or diminution of the rigths and liabilities of such entity. If
the 3 year extended life has expired w/o a trustee or receiver having
been expressly designated by the corp, w/in that period, the BoD (or
trustees) itself, may be permitted to so continue as “trustees” by legal
implication to complete the corporate liquidation.
3. However, agree with Petitioners that setting aside the NLRC and
reinstating the ELA is null and void for lack of jurisdiction
4. CA has no appellate jurisdiction over the issue of whether the decision
of the NLRC is correct or not. The only issued in the CA was WON NLRC
commited grave abuse of discretion in dismissing the complaint simply
and merely because PCDP was acquired by Petitioner here.