Sonedco Workers Free Labor Union (SWOFLU) / Renato Yude, et al. Vs.

Universal
RobinaCorporation, Sugar Division-Southern Negros Development
Corporation (SONEDCO) G.R. No. 220383. October 5, 2016
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), thenthe exclusive bargaining representative of URC-SONEDCO's
rank-and-file employees, entered into aCollective Bargaining Agreement (2002 Collective
Bargaining Agreement) effective January 1, 2002 toDecember 31, 2006.
5
Under the 2002 Collective Bargaining Agreement, rank-and-file employees wereentitled to a
wage increase of P14.00/day for 2002 and P12.00/day for the succeeding years until 2006.On
May 17, 2002, days after the 2002 Collective Bargaining Agreement was signed, a certification
electionwas conducted. SONEDCO Workers Free Labor Union won and replaced PACIWU-
TUCP as the exclusivebargaining representative.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 benefitsURC-SONEDCO asked the employees who
wished to avail themselves of these-benefits to sign anacknowledgment 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 [CollectiveBargaining Agreement] shall
only be effective January 1, 2008.Lower Courts however erred in ruling that respondent did not
commit unfair labor practice, the NationalLabor 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 underArticle 259(g) of the Labor
Code.The wording of the waivers shows a clear attempt to limit petitioners' bargaining power by
making themwaive the negotiations for 2007 and 2008. In stipulating that the collective
bargaining agreement that wouldbe entered into would only be effective the year following the
2008 waiver, respondent limited when thecollective bargaining agreement could be deemed
effective. In other words, respondent asked petitioners toforego any benefits they might have
received under a collective bargaining agreement in exchange for thecompany-granted benefits.
The Supreme Court finds respondent Universal Robina Corporation. Sugar Division - Southern
NegrosDevelopment Corporation is
GUILTY
of unfair labor practice and is
ORDERED
to pay each of thepetitioners the wage increase of P16.00 for the years 2007 and 2008; and to
pay SONEDCO WorkersFree Labor Union moral damages in the amount of P100,000.00; and
exemplary damages in the amountof P200,000.00.
Doctrine
An employer who refuses to bargain with the union and tries to restrict its bargaining power is
guilty ofunfair labor practice. In determining whether an employer has not bargained in good
faith, the totality of allthe acts of the employer at the time of negotiations must be taken into
account.