fulache vs. absc-cbn

8/9/2019 Fulache vs. ABSC-CBN

1/23

Republic of the PhilippinesSupreme Court

Manila

SECOND DIVISION

FARLEY FULACHE, MANOLO

JABONERO, DAVID CASTILLO,

JEFFREY LAGUNZAD,

MAGDALENA MALIG-ON

BIGNO, FRANCISCO CABAS,

JR., HARVEY PONCE and ALAN

C. ALMENDRAS,

Petitioners,

- versus -

ABS-CBN BROADCASTING

CORPORATION, Respondent.

G.R. No. 1!1"

Present:

CARPIO, J., Chairperson,

BRION,

DEL CASTILLO, ABAD, and

PEREZ,JJ.

Prou!"ated:

#anuar$ %&, %'&'

(-------------------------------------------------------------------------------------- (

D E C I S I O N

BRION,J.:

T)e petition *or revie+ on certiorari&no+ e*ore us see/s to set aside t)e

de0ision%and reso!ution1o* t)e Court o* Appea!s, Nineteent) Division 2CA3

prou!"ated on 4ar0) %5, %''6 and #u!$ 6, %''6, respe0tive!$, in CA- 7.R. SP

No. '&616.8
http://sc.judiciary.gov.ph/jurisprudence/2010/january2010/183810.htm#_ftn1http://sc.judiciary.gov.ph/jurisprudence/2010/january2010/183810.htm#_ftn2http://sc.judiciary.gov.ph/jurisprudence/2010/january2010/183810.htm#_ftn3http://sc.judiciary.gov.ph/jurisprudence/2010/january2010/183810.htm#_ftn4http://sc.judiciary.gov.ph/jurisprudence/2010/january2010/183810.htm#_ftn2http://sc.judiciary.gov.ph/jurisprudence/2010/january2010/183810.htm#_ftn3http://sc.judiciary.gov.ph/jurisprudence/2010/january2010/183810.htm#_ftn4http://sc.judiciary.gov.ph/jurisprudence/2010/january2010/183810.htm#_ftn1


2/23

T#$ An%$&$d$n%'

T#$ R$()*a+a%on Ca'$.

In #une %''&, petitioners 9ar!e$ 9u!a0)e, 4ano!o #aonero, David Casti!!o,

#e**re$ La"unad, 4a"da!ena 4a!i"-on Bi"no, 9ran0is0o Caas, #r., ;arve$ Pon0e

and A!an C. A!endras 2petitioners3 and Cresente Atinen 2Atinen3 *i!ed t+o

separate 0op!aints *or re"u!ariation, un*air !aor pra0ti0e and severa! one$

0!ais 2regularization case3 a"ainst ABS-CBN Broad0astin" Corporation-Ceu

2ABS-CBN3. 9u!a0)e and Casti!!o +ere drivers


3/23


4/23

On #anuar$ &@, %''%, Laor Ariter Rendoue rendered )is

de0ision5)o!din" t)at t)e petitioners +ere re"u!ar ep!o$ees o* ABS-CBN, not

independent 0ontra0tors, and are entit!ed to t)e ene*its and privi!e"es o* re"u!arep!o$ees.

ABS-CBN appea!ed t)e ru!in" to t)e Nationa! Laor Re!ations Coission

2NLRC3 9ourt) Division, ain!$ 0ontendin" t)at t)e petitioners +ere independent

0ontra0tors, not re"u!ar ep!o$ees.?

T#$ I**$(a* D'''a* Ca'$.

While the appeal of the regularization case as pen!ing, ABS-CBN

disissed 9u!a0)e, #aonero, Casti!!o, La"unad and Atinen 2a!! drivers3 *or t)eir

re*usa! to si"n up 0ontra0ts o* ep!o$ent +it) servi0e 0ontra0tor A!e

Servi0es. T)e *our drivers and Atinen responded $ *i!in" a &o/*an% 0o+**$(a*

d'''a*2illegal !is"issal case3. T)e 0ase 2RAB >II Case No. '@-&1''-%''%3

+as !i/e+ise )and!ed $ Laor Ariter Rendoue.

In de*ense, ABS-CBN a!!e"ed t)at even e*ore t)e !aor ariter rendered )is

de0ision o* #anuar$ &@, %''% in t)e re"u!ariation 0ase, it )ad a!read$ underta/en a

0opre)ensive revie+ o* its e(istin" or"aniationa! stru0ture to address its

operationa! reuireents. It t)en de0ided to 0ourse t)rou") !e"itiate servi0e

0ontra0tors a!! drivin", essen"eria!, anitoria!, uti!it$, a/e-up, +ardroe and

se0urit$ servi0es *or ot) t)e 4etro 4ani!a and provin0ia! stations, to iprove its

operations and to a/e t)e ore e0onoi0a!!$ via!e. 9u!a0)e, #aonero,

Casti!!o, La"unad and Atinen +ere not sin"!ed out *or disissa!= as drivers, t)e$

+ere disissed e0ause t)e$ e!on"ed to a o 0ate"or$ t)at )ad a!read$ een

0ontra0ted out. It ar"ued t)at even i* t)e petitioners )ad een *ound to )ave een

i!!e"a!!$ disissed, t)eir reinstateent )ad e0oe a p)$si0a! ipossii!it$
http://sc.judiciary.gov.ph/jurisprudence/2010/january2010/183810.htm#_ftn5http://sc.judiciary.gov.ph/jurisprudence/2010/january2010/183810.htm#_ftn6http://sc.judiciary.gov.ph/jurisprudence/2010/january2010/183810.htm#_ftn5http://sc.judiciary.gov.ph/jurisprudence/2010/january2010/183810.htm#_ftn6


5/23


6/23

T)e petitioners oved *or re0onsideration, 0ontendin" t)at 9u!a0)e,

#aonero, Casti!!o and La"unad are entit!ed to reinstateent and *u!! a0/+a"es,

sa!ar$ in0reases and ot)er CBA ene*its as +e!! as &1t)

ont) pa$, 0as) 0onversiono* si0/ and va0ation !eaves, edi0a! and denta! a!!o+an0es, edu0ationa! ene*its

and servi0e a+ards. Atinen appeared to )ave een e(0!uded *ro t)e otion and

t)ere +as no s)o+in" t)at )e sou")t re0onsideration on )is o+n.

ABS-CBN !i/e+ise oved *or t)e re0onsideration o* t)e de0ision,

reiteratin" t)at 9u!a0)e, #aonero, Casti!!o and La"unad +ere independent

0ontra0tors, +)ose servi0es )ad een terinated due to redundan0$= t)us, no

a0/+a"es s)ou!d )ave een a+arded. It *urt)er ar"ued t)at t)e petitioners +ere

not entit!ed to t)e CBA ene*its e0ause t)e$ never 0!aied t)ese ene*its in t)eir

position paper e*ore t)e !aor ariter +)i!e t)e NLRC *ai!ed to a/e a 0!ear and

positive *indin" t)at t)at t)e$ +ere part o* t)e ar"ainin" unit= neit)er +as t)ere

eviden0e to support t)is *indin".

T)e NLRC reso!ved t)e otions *or re0onsideration on 4ar0) %8,

%''?&'$ reinstatin" t)e t+o separate de0isions o* t)e !aor ariter dated #anuar$

&@, %''%,&&andApri! %&, %''1,&%respe0tive!$. T)us, on t)e re"u!ariation issue,

t)e NLRC stood $ t)e ru!in" t)at t)e petitioners +ere re"u!ar ep!o$ees entit!ed

to t)e ene*its and privi!e"es o* re"u!ar ep!o$ees. On t)e i!!e"a! disissa! 0ase,

t)e petitioners, +)i!e re0o"nied as re"u!ar ep!o$ees, +ere de0!ared disissed

due to redundan0$. T)e NLRC denied t)e petitioners se0ond otion *or

re0onsideration in its order o* 4a$ 1&, %''? *or ein" a pro)iited p!eadin".&1

T#$ CA P$%%on and D$&'on


7/23

T)e petitioners +ent to t)e CA t)rou") a petition *or certiorariunder Ru!e

?5 o* t)e Ru!es o* Court.&8 T)e$ 0)ar"ed t)e NLRC +it) "rave ause o*

dis0retion in: 2&3 den$in" t)e t)e ene*its under t)e CBA= 2%3 *indin" noeviden0e t)at t)e$ are part o* t)e 0opan$s ar"ainin" unit= 213 not reinstatin"

and a+ardin" a0/+a"es to 9u!a0)e, #aonero, Casti!!o and La"unad= and 283

ru!in" t)at t)e$ are not entit!ed to daa"es and attorne$s *ees.

ABS-CBN, on t)e ot)er )and, uestioned t)e propriet$ o* t)e petitioners

use o* a certioraripetition. It ar"ued t)at t)e proper reed$ *or t)e petitioners +as

an appea! *ro t)e reinstated de0isions o* t)e !aor ariter.

In its de0ision o* 4ar0) %5, %''6,&5t)e appe!!ate 0ourt rus)ed aside ABS-

CBNs pro0edura! uestion, )o!din" t)at t)e petition +as usti*ied e0ause t)ere is

no p!ain, speed$ or adeuate reed$ *ro a *ina! de0ision, order or reso!ution o*

t)e NLRC= t)e reinstateent o* t)e !aor ariters de0isions did not ean t)at t)e

pro0eedin"s reverted a0/ to t)e !eve! o* t)e ariter. It !i/e+ise a**ired t)e

NLRC ru!in" t)at t)e petitioners se0ond otion *or re0onsideration is a pro)iited

p!eadin" under t)e NLRC ru!es.&?

On t)e erits o* t)e 0ase, t)e CA ru!ed t)at t)e petitioners *ai!ed to prove

t)eir 0!ai to CBA ene*its sin0e t)e$ never raised t)e issue in t)e 0opu!sor$

aritration pro0eedin"s, and did not appea! t)e !aor ariters de0ision +)i0) +as

si!ent on t)eir entit!eent to CBA ene*its. T)e CA *ound t)at t)e petitioners

*ai!ed to s)o+ +it) spe0i*i0it$ )o+ Se0tion & 2Appropriate Bar"ainin" nit3 and

t)e ot)er provisions o* t)e CBA app!ied to t)e.

On t)e i!!e"a! disissa! issue, t)e CA up)e!d t)e NLRC de0ision reinstatin"

t)e !aor ariters Apri! %&, %''1 ru!in".&@T)us, t)e drivers J 9u!a0)e, #aonero,

Casti!!o and La"unad J +ere not i!!e"a!!$ disissed as t)eir separation *ro t)e

servi0e +as due to redundan0$= t)e$ )ad not presented an$ eviden0e t)at ABS-


8/23

CBN aused its prero"ative in 0ontra0tin" out t)e servi0es o* drivers. E(0ept *or

separation pa$, t)e CA denied t)e petitioners 0!ai *or a0/+a"es, ora! and

e(ep!ar$ daa"es, and attorne$s *ees.

T)e petitioners oved *or re0onsideration, ut t)e CA denied t)e otion in a

reso!ution prou!"ated on #u!$ 6, %''6.&6 ;en0e, t)e present petition.

T#$ P$%%on

T)e petitioners 0)a!!en"e t)e CA ru!in" on ot) pro0edura! and sustantive

"rounds. As pro0edura! uestions, t)e$ suit t)at t)e CA erred in: 2&3 a**irin"

t)e NLRC reso!ution +)i0) reversed its o+n de0ision= 2%3 sustainin" t)e NLRC

ru!in" t)at t)eir se0ond otion *or re0onsideration is a pro)iited p!eadin"= 213 not

ru!in" t)at ABS-CBN aditted in its position paper e*ore t)e !aor ariter t)at

t)e$ +ere eers o* t)e ar"ainin" unit as t)e atter +as not raised in its appea!

to t)e NLRC= and, 283 not ru!in" t)at not+it)standin" t)eir *ai!ure to appea! *ro

t)e *irst de0ision o* t)e Laor Ariter, t)e$ 0an sti!! parti0ipate in t)e appea! *i!ed

$ ABS-CBN re"ardin" t)eir ep!o$ent status.

On t)e sustantive aspe0t, t)e petitioners 0ontend t)at t)e CA "rave!$ erred

in: 2&3 not 0onsiderin" t)e eviden0e suitted to t)e NLRC on appea! to o!ster

t)eir 0!ai t)at t)e$ +ere eers o* t)e ar"ainin" unit and t)ere*ore entit!ed to

t)e CBA ene*its= 2%3 not orderin" ABS-CBN to pa$ t)e petitioners sa!aries,

a!!o+an0es and CBA ene*its a*ter t)e NLRC )as de0!ared t)at t)e$ +ere re"u!ar

ep!o$ees o* ABS-CBN= 213 not ru!in" t)at under e(istin" urispruden0e, t)e

position o* driver 0annot e de0!ared redundant, and t)at t)e petitioners-drivers

+ere i!!e"a!!$ disissed= and, 283 not ru!in" t)at t)e petitioners +ere entit!ed to

daa"es and attorne$s *ees.
http://sc.judiciary.gov.ph/jurisprudence/2010/january2010/183810.htm#_ftn18http://sc.judiciary.gov.ph/jurisprudence/2010/january2010/183810.htm#_ftn18


9/23

T)e petitioners ar"ue t)at t)e NLRC reso!ution o* 4ar0) %8, %''?& +)i0)

set aside its oint de0ision o* De0eer &5, %''8%'and reinstated t)e t+in

de0isions o* t)e !aor ariter,%&)ad t)e e**e0t o* prou!"atin" a ne+ de0ision

ased on issues t)at +ere not raised in ABS-CBNs partia! appea! to t)eNLRC. T)e$ suit t)at t)e NLRC s)ou!d )ave a!!o+ed t)eir se0ond otion *or

re0onsideration so t)at it a$ e a!e to euita!$ eva!uate t)e parties Fconflicting

#ersions of the factsG instead o* den$in" t)e otion on a ere te0)ni0a!it$.

On t)e uestion o* t)eir CBA 0overa"e, t)e petitioners 0ontend t)at t)e CA

erred in not 0onsiderin" t)at ABS-CBN aditted t)eir eers)ip in t)e

ar"ainin" unit, *or no+)ere in its partia! appea! *ro t)e !aor ariters de0ision

in t)e re"u!ariation 0ase did it a!!e"e t)at t)e petitioners *ai!ed to prove t)at t)e$

are eers o* t)e ar"ainin" unit= instead, t)e 0opan$ stood $ its position t)at

t)e petitioners +ere not entit!ed to t)e CBA ene*its sin0e t)e$ +ere independent

0ontra0tors


10/23

ne+s tea= Pon0e and A!endras, to s)oot s0enes and events +it) t)e use o*

0aeras o+ned $ ABS-CBN= 4a!i"-on Bi"no, as studio produ0tion assistant and

assistant editorTR a0)ine re0order. As produ0tion assistants,t)e petitioners suit t)at t)e$ are ran/-and-*i!e ep!o$ees 20itin" in support o*

t)eir position t)e Courts ru!in" inABS-CBN Broa!casting Corp. #. Nazareno%13

+)o are entit!ed to sa!ar$ in0reases and ot)er ene*its under t)e CBA. Re!$in" on

t)e Courts ru!in" inNe $acific %i"&er an! Suppl' Co"pan', (nc. #. NLRC,%8 t)e$ posit t)at to e(0!ude t)e *ro t)e CBA F+ou!d 0onstitute undue

dis0riination and +ou!d deprive t)e o* onetar$ ene*its t)e$ +ou!d ot)er+ise

e entit!ed to.)

As t)eir *ina! point, t)e petitioners ar"ue t)at even i* t)e$ +ere not a!e to

prove t)at t)e$ +ere eers o* t)e ar"ainin" unit, t)e CA s)ou!d not )ave

disissed t)eir petition. K)en t)e CA a**ired t)e ru!in"s o* ot) t)e !aor

ariter and t)e NLRC t)at t)e$ are re"u!ar ep!o$ees, t)e CA s)ou!d )ave ordered

ABS-CBN to re0o"nie t)eir re"u!ar ep!o$ee status and to "ive t)e t)e sa!aries,

a!!o+an0es and ot)er ene*its and privi!e"es under t)e CBA.

On t)e disissa! o* 9u!a0)e, #aonero, Casti!!o and La"unad, t)e

petitioners ipute ad *ait) on ABS-CBN +)en it ao!is)ed t)e positions o*

drivers 0!aiin" t)at t)e 0opan$ *ai!ed to 0op!$ +it) t)e reuisites o* a va!id

redundan0$ a0tion. T)e$ aintain t)at ABS-CBN did not present an$ eviden0e on

t)e ne+ sta**in" pattern as approved $ t)e ana"eent o* t)e 0opan$, and did

not even ot)er to s)o+ +)$ it 0onsidered t)e positions o* drivers super*!uous and

unne0essar$= it is not true t)at t)e positions o* drivers no !on"er e(isted e0ause

t)ese positions +ere 0ontra0ted out to an a"en0$ t)at, in turn, re0ruited *our drivers

to ta/e t)e p!a0e o* 9u!a0)e, #aonero, Casti!!o and La"unad. As *urt)er

indi0ation t)at t)e redundan0$ a0tion a"ainst t)e *our drivers +as done in ad *ait),

t)e petitioners 0a!! attention to ABS-CBNs ao!ition o* t)e position o* drivers a*ter


11/23


12/23

!on"er e t)e sue0t o* a petition *or certiorari= t)e petitioners 0annot otain *ro

t)e appe!!ate 0ourt a**irative re!ie* ot)er t)an t)ose "ranted in t)e appea!ed

de0ision. It a!so ar"ues t)at t)e NLRC did not 0oit an$ "rave ause o*

dis0retion in reinstatin" t)e t+in de0isions o* t)e !aor ariter, t)ere$ a**irin"t)at no CBA ene*its 0an e a+arded to t)e petitioners= in t)e asen0e o* an$

i!!e"a! disissa!, t)e petitioners +ere not entit!ed to reinstateent, a0/+a"es,

daa"es, and attorne$s *ees.

T#$ Co)+%' R)*n(

Ke *irst reso!ve t)e parties pro0edura! uestions.

ABS-CBN +ants t)e petition to e disissed outri")t *or its a!!e"ed *ai!ure

to 0op!$ +it) t)e reuireent o* Ru!e 85 o* t)e Ru!es o* Court t)at t)e petition

raises on!$ uestions o* !a+.%?

Ke *ind no ipropriet$ in t)e petition *ro t)e standpoint o* Ru!e 85. T)e

petitioners do not uestion t)e *indin"s o* *a0ts o* t)e assai!ed de0isions. T)e$

uestion t)e isapp!i0ation o* t)e !a+ and urispruden0e on t)e *a0ts re0o"nied $

t)e de0isions. 9or e(ap!e, t)e$ uestion as 0ontrar$ to !a+ t)eir e(0!usion *ro

t)e CBA a*ter t)e$ +ere re0o"nied as re"u!ar ran/-and-*i!e ep!o$ees o* ABS-

CBN. T)e$ a!so uestion t)e asis in !a+ o* t)e disissa! o* t)e *our drivers and

t)e !e"a! propriet$ o* t)e redundan0$ a0tion ta/en a"ainst. To reiterate t)e

esta!is)ed distin0tions et+een uestions o* !a+ and uestions o* *a0t, +e uote

)ereunder our ru!in" inNe Rural Ban* of Gui"&a +N.. (nc. #. er"ina S. A&a!

an! Rafael Susan/%@


13/23

2$ +$%$+a%$ %#$ d'%n&%on 3$%4$$n a 5)$'%on o0 *a4 and a 5)$'%on

o0 0a&%. A 5)$'%on o0 *a4 $6'%' 4#$n %#$ do)3% o+ &on%+o7$+'8 &on&$+n' %#$

&o++$&% a//*&a%on o0 *a4 o+ 9)+'/+)d$n&$ %o a &$+%an '$% o0 0a&%': o+ 4#$n

%#$ '')$ do$' no% &a** 0o+ an $6ana%on o0 %#$ /+o3a%7$ 7a*)$ o0 %#$

$7d$n&$ /+$'$n%$d, %#$ %+)%# o+ 0a*'$#ood o0 %#$ 0a&%' 3$n( ad%%$d. A

5)$'%on o0 0a&% $6'%' 4#$n a do)3% o+ d00$+$n&$ a+'$' a' %o %#$ %+)%# o+0a*'$#ood o0 0a&%' o+ 4#$n %#$ 5)$+8 n7%$' &a*3+a%on o0 %#$ 4#o*$ $7d$n&$

&on'd$+n( an*8 %#$ &+$d3*%8 o0 %#$ 4%n$''$', %#$ $6'%$n&$ and

+$*$7an&8 o0 '/$&0& ')++o)ndn( &+&)'%an&$', a' 4$** a' %#$+ +$*a%on %o

$a o%#$+ and %o %#$ 4#o*$, and %#$ /+o3a3*%8 o0 %#$ '%)a%on.

Ke a!so *ind no error in t)e CAs a**iration o* t)e denia! o* t)e petitioners

se0ond otion *or re0onsideration o* t)e 4ar0) %8, %''? reso!ution o* t)e NLRC

reinstatin" t)e !aor ariters t+in de0isions. T)e petitioners se0ond otion *orre0onsideration +as a pro)iited p!eadin" under t)e NLRC ru!es o* pro0edure.%6

T)e parties ot)er pro0edura! uestions dire0t!$ ear on t)e erits o* t)eir

positions and are dis0ussed and reso!ved e!o+, to"et)er +it) t)e 0ore

sustantive issues o*: 2&3 +)et)er t)e petitioners, as re"u!ar ep!o$ees, are

eers o* t)e ar"ainin" unit entit!ed to CBA ene*its= and 2%3 +)et)er

petitioners 9u!a0)e, #aonero, Casti!!o and La"unad +ere i!!e"a!!$ disissed.

T#$ C*a 0o+ CBA B$n$0%'

2$ 0nd $+% n %#$ /$%%on$+'; /o'%on'.

As re"u!ar ep!o$ees, t)e petitioners *a!! +it)in t)e 0overa"e o* t)e

ar"ainin" unit and are t)ere*ore entit!ed to CBA ene*its as a atter o* !a+ and

0ontra0t. In t)e root de0ision 2t)e !aor ariters de0ision o* #anuar$ &@, %''%3 t)at

t)e NLRC and CA a**ired, t)e !aor ariter de0!ared:

2HEREFORE, IN THE LIGHT OF THE FOREGOING, ta/in" into

a00ount t)e *a0tua! s0enario and t)e eviden0e addu0ed $ ot) parties, it is


14/23

de0!ared t)at 0op!ainants in t)ese 0ases are REGULAR EMPLOYEESo*

respondent ABS-CBN and not INDEPENDENT CONTRACTORS and t)us

)en0e*ort) t)e$ are entit!ed to t)e ene*its and privi!e"es atta0)ed to re"u!ar statuso* t)eir ep!o$ent.

T)is de0!aration uneuivo0a!!$ sett!ed t)e petitioners ep!o$ent status:

t)e$ are ABS-CBNs re"u!ar ep!o$ees entit!ed to t)e ene*its and privi!e"es o*

re"u!ar ep!o$ees. T)ese ene*its and privi!e"es arise *ro entit!eents under t)e

!a+ 2spe0i*i0a!!$, t)e Laor Code and its re!ated !a+s3, and *ro t)eir ep!o$ent

0ontra0t as re"u!ar ABS-CBN ep!o$ees, part o* +)i0) is t)e CBA i* t)e$ *a!!

+it)in t)e 0overa"e o* t)is a"reeent. T)us, +)at on!$ needs to e reso!ved as an

issuefor purposes of i"ple"entation of the !ecisionis +)et)er t)e petitioners *a!!

+it)in CBA 0overa"e.

T)e parties &-%''% CBA provided in its Arti0!e I 2S0ope o* t)e

A"reeent3 t)at:%

Se0tion &. APPROPRIATE BAR7AININ7 NIT. J T)e parties a"reet)at t)e appropriate ar"ainin" unit s)a!! e +$()*a+ +an


15/23

supervisor$ or 0on*identia! ep!o$ees= neit)er are t)e$ 0asua! nor proationar$

ep!o$ees. 4ost iportant!$, t)e !aor ariters de0ision o* #anuar$ &@, %''% J

a**ired a!! t)e +a$ up to t)e CA !eve! J ru!ed a"ainst ABS-CBNs suission t)at

t)e$ are independent 0ontra0tors. T)us, as re"u!ar ran/-and-*i!e ep!o$ees, t)e$*a!! +it)in CBA 0overa"e under t)e CBAs e(press ters and are entit!ed to its

ene*its.

Ke see no erit in ABS-CBNs ar"uents t)at t)e petitioners are not

entit!ed to CBA ene*its e0ause: 2&3 t)e$ did not 0!ai t)ese ene*its in t)eir

position paper= 2%3 t)e NLRC did not 0ate"ori0a!!$ ru!e t)at t)e petitioners +ere

eers o* t)e ar"ainin" unit= and 213 t)ere +as no eviden0e o* t)is

eers)ip. To *urt)er 0!ari*$ +)at +e stated aove, CBA 0overa"e is not on!$ a

uestion o* *a0t, ut o* !a+ and 0ontra0t. T)e *a0tua! issue is +)et)er t)e

petitioners are re"u!ar ran/-and-*i!e ep!o$ees o* ABS-CBN. T)e triuna!s e!o+

uni*or!$ ans+ered t)is uestion in t)e a**irative. 9ro t)is *a0tua! *indin"

*!o+s !e"a! e**e0ts tou0)in" on t)e ters and 0onditions o* t)e petitioners re"u!ar

ep!o$ent. T)is +as +)at t)e !aor ariter eant +)en )e stated in )is de0ision

t)at 0henceforth the' are entitle! to the &enefits an! pri#ileges attache! to regular

status of their e"plo'"ent.)Si"ni*i0ant!$, ABS-CBN itse!* posited e*ore t)is

Court t)at 0the Court of Appeals !i! not gra#el' err nor gra#el' a&use its

!iscretion hen it affir"e! the resolution of the NLRC !ate! 1arch 23, 2445

reinstating an! a!opting in toto the !ecision of the La&or Ar&iter !ate! Januar'

67, 2442 8 8 8.)1'T)is representation a!one *u!!$ reso!ves a!! t)e oe0tions J

pro0edura! or ot)er+ise J ABS-CBN raised on t)e re"u!ariation issue.

T#$ D'''a* o0 F)*a$, Ja3on$+o,Ca'%**o and La()nad

T)e terination o* ep!o$ent o* t)e *our drivers o00urred under )i")!$

uestiona!e 0ir0ustan0es and +it) p!ain and unadu!terated ad *ait).


16/23

T)e re0ords s)o+ t)at t)e re"u!ariation 0ase +as in *a0t t)e root o* t)e

resu!tin" ad *ait) as t)is 0ase "ave rise and !ed to t)e disissa! 0ase. irst, t)e

re"u!ariation 0ase +as *i!ed !eadin" to t)e !aor ariters de0ision1&

de0!arin" t)epetitioners, in0!udin" 9u!a0)e, #aonero, Casti!!o and La"unad, to e re"u!ar

ep!o$ees. ABS-CBN appea!ed t)e de0ision and aintained its position t)at t)e

petitioners +ere independent 0ontra0tors.

In t)e 0ourse o* t)is appea!, ABS-CBN too/ atters into its o+n )ands and

terinated t)e petitioners servi0es, 0!ear!$ disre"ardin" its o+n appea! t)en

pendin" +it) t)e NLRC. Nota!$, t)is appea! posited t)at t)e petitioners +ere not

ep!o$ees 2+)ose servi0es t)ere*ore 0ou!d e terinated t)rou") disissa! under

t)e Laor Code3= t)e$ +ere independent 0ontra0tors +)ose servi0es 0ou!d e

terinated at +i!!, sue0t on!$ to t)e ters o* t)eir 0ontra0ts. To usti*$ t)e

terination o* servi0e, t)e 0opan$ 0ited redundan0$ as its aut)oried 0ause ut

o**ered no usti*i0ator$ supportin" eviden0e. It ere!$ 0!aied t)at it +as

0ontra0tin" out t)e petitioners a0tivities in t)e e(er0ise o* its ana"eent

prero"ative.

ABS-CBNs intent, o* 0ourse, ased on t)e re0ords, +as to trans*er t)e

petitioners and t)eir a0tivities to a servi0e 0ontra0tor +it)out pa$in" an$ attention

to t)e reuireents o* our !aor !a+s= )en0e, ABS-CBN disissed t)e petitioners

+)en t)e$ re*used to si"n up +it) t)e servi0e 0ontra0tor. 1% In t)is anner, ABS-

CBN *e!! into a do+n+ard spira! o* irre0on0i!a!e !e"a! positions, a!! underta/en in

t)e )ope o* savin" itse!* *ro t)e de0ision de0!arin" its Fta!entsG to e re"u!ar

ep!o$ees.

B$ doin" a!! t)ese, ABS-CBN *or"ot !aor !a+ and its rea!ities.


17/23

It *or"ot t)at $ 0!aiin" redundan0$ as aut)oried 0ause *or disissa!, it

ip!ied!$ aditted t)at t)e petitioners +ere re"u!ar ep!o$ees +)ose servi0es, $

!a+, 0an on!$ e terinated *or t)e ust and aut)oried 0auses de*ined under t)e

Laor Code.

Li/e+ise ABS-CBN *or"ot t)at it )ad an e(istin" CBA +it) a union, +)i0)

a"reeent ust e respe0ted in an$ ove a**e0tin" t)e se0urit$ o* tenure o*

a**e0ted ep!o$ees= ot)er+ise, it ran t)e ris/ o* 0oittin" un*air !aor pra0ti0e J

ot) a 0riina! and an adinistrative o**ense.11 It sii!ar!$ *or"ot t)at an e(er0ise

o* ana"eent prero"ative 0an e va!id on!$ i* it is underta/en in "ood *ait) and

+it) no intent to de*eat or 0ir0uvent t)e ri")ts o* its ep!o$ees under t)e !a+s or

under va!id a"reeents.18

Last!$, it *or"ot t)at t)ere +as a standin" !aor ariters de0ision t)at, +)i!e

not $et *ina! e0ause o* its o+n pendin" appea!, 0annot sip!$ e disre"arded. B$

ip!eentin" t)e disissa! a0tion at t)e tie t)e !aor ariters ru!in" +as under

revie+, t)e 0opan$ uni!atera!!$ ne"ated t)e e**e0ts o* t)e !aor ariters ru!in"

+)i!e at t)e sae tie appea!!in" t)e sae ru!in" to t)e NLRC. T)is uni!atera!

ove is a dire0t a**ront to t)e NLRCs aut)orit$ and an ause o* t)e appea!

pro0ess.

A!! t)ese "o to s)o+ t)at ABS-CBN a0ted +it) patent ad *ait). A 0!ose

para!!e! +e 0an dra+ to 0)ara0terie t)is ad *ait) is t)e pro)iition a"ainst *oru-

s)oppin" under t)e Ru!es o* Court. In *oru-s)oppin", t)e Ru!es 0)ara0terie as

ad *ait) t)e a0t o* *i!in" sii!ar and repetitive a0tions *or t)e sae 0ause +it) t)e

intent o* soe)o+ *indin" a *avora!e ru!in" in one o* t)e a0tions *i!ed. 15 ABS-

CBNs a0tions in t)e t+o 0ases, as des0ried aove, are o* t)e sae 0)ara0ter,

sin0e its ovious intent +as to de*eat and render use!ess, in a roundaout +a$ and

ot)er t)an t)rou") t)e appea! it )ad ta/en, t)e !aor ariters de0ision in t)e

re"u!ariation 0ase. 9oru-s)oppin" is pena!ied $ t)e disissa! o* t)e a0tions
http://sc.judiciary.gov.ph/jurisprudence/2010/january2010/183810.htm#_ftn33http://sc.judiciary.gov.ph/jurisprudence/2010/january2010/183810.htm#_ftn34http://sc.judiciary.gov.ph/jurisprudence/2010/january2010/183810.htm#_ftn35http://sc.judiciary.gov.ph/jurisprudence/2010/january2010/183810.htm#_ftn33http://sc.judiciary.gov.ph/jurisprudence/2010/january2010/183810.htm#_ftn34http://sc.judiciary.gov.ph/jurisprudence/2010/january2010/183810.htm#_ftn35


18/23

invo!ved. T)e pena!t$ a"ainst ABS-CBN *or its ad *ait) in t)e present 0ase

s)ou!d e no !ess.

T)e errors and oissions do not e!on" to ABS-CBN a!one. T)e !aorariter )ise!* +)o )and!ed ot) 0ases did not see t)e tota!it$ o* t)e 0opan$s

a0tions *or +)at t)e$ +ere. ;e appeared to )ave !ind!$ a!!o+ed +)at )e "ranted

t)e petitioners +it) )is !e*t )and, to e ta/en a+a$ +it) )is ri")t )and, unind*u!

t)at t)e 0opan$ a!read$ e()iited a ad"e o* ad *ait) in see/in" to terinate t)e

servi0es o* t)e petitioners +)ose re"u!ar status )ad ust een re0o"nied. ;e

s)ou!d )ave re0o"nied t)e ad *ait) *ro t)e tiin" a!one o* ABS-CBNs

0ons0ious and purpose*u! oves to se0ure t)e u!tiate ai o* avoidin" t)e

re"u!ariation o* its so-0a!!ed Fta!ents.G

T)e NLRC, *or its part, initia!!$ re0o"nied t)e presen0e o* ad *ait) +)en it

ori"ina!!$ ru!ed t)at:

K)i!e noti0e )as een ade to t)e ep!o$ees +)ose positions +ere

de0!ared redundant, t)e e!eent o* "ood *ait) in ao!is)in" t)e positions o* t)e0op!ainants appear to e +antin". In *a0t, it reains undisputed t)at )erein

0op!ainants +ere terinated +)en t)e$ re*used to si"n an ep!o$ent 0ontra0t+it) A!e Servi0es +)i0) +ou!d a/e t)e appear as ep!o$ees o* t)e a"en0$

and not o* ABS-CBN. Su0) a0t $ itse!* 0!ear!$ deonstrates ad *ait) on t)epart o* t)e respondent in 0arr$in" out t)e 0opan$s redundan0$ pro"ra ( ( (.1?

On otion *or re0onsideration $ ot) parties, t)e NLRC reiterated its

Fpronoun0eent t)at 0op!ainants +ere i!!e"a!!$ terinated as e(tensive!$

dis0ussed in our #oint De0ision dated De0eer &5, %''8.G1@ et, in an

ine(p!i0a!e turnaround, it re0onsidered its oint de0ision and reinstated not on!$

t)e !aor ariters de0ision o* #anuar$ &@, %''% in t)e re"u!ariation 0ase, ut a!so

)is i!!e"a! disissa! de0ision o* Apri! %&, %''1.16T)us, t)e NLRC oined t)e !aor

ariter in )is error t)at +e 0annot ut 0)ara0terie as "rave ause o* dis0retion.
http://sc.judiciary.gov.ph/jurisprudence/2010/january2010/183810.htm#_ftn36http://sc.judiciary.gov.ph/jurisprudence/2010/january2010/183810.htm#_ftn37http://sc.judiciary.gov.ph/jurisprudence/2010/january2010/183810.htm#_ftn38http://sc.judiciary.gov.ph/jurisprudence/2010/january2010/183810.htm#_ftn36http://sc.judiciary.gov.ph/jurisprudence/2010/january2010/183810.htm#_ftn37http://sc.judiciary.gov.ph/jurisprudence/2010/january2010/183810.htm#_ftn38


19/23

T)e Court 0annot !eave un0)e0/ed t)e !aor triuna!s patent "rave ause o*

dis0retion t)at resu!ted, +it)out dout, in a "rave inusti0e to t)e petitioners +)o

+ere 0!aiin" re"u!ar ep!o$ent status and +ere un0ereonious!$ deprived o*

t)eir ep!o$ent soon a*ter t)eir re"u!ar status +as re0o"nied. n*ortunate!$, t)eCA *ai!ed to dete0t t)e !aor triuna!s "ross errors in t)e disposition o* t)e

disissa! issue. T)us, t)e CA itse!* oined t)e sae errors t)e !aor triuna!s

0oitted.

T)e inusti0e 0oitted on t)e petitioners


20/23

&. Con*irin" t)at petitioners 9ARLE 9LAC;E, 4ANOLO

#ABONERO, DA>ID CASTILLO, #E99RE LA7NZAD,

4A7DALENA 4ALI7-ON BI7NO, 9RANCISCO CABAS, #R.,;AR>E PONCE and ALAN C. AL4ENDRAS are

re"u!arep!o$ees o* ABS-CBN BROADCASTIN7

CORPORATION, and de0!arin" t)e entit!ed to a!! t)e ri")ts,

ene*its and privi!e"es, in0!udin" CBA ene*its, *ro t)e tie t)e$

e0ae re"u!ar ep!o$ees in a00ordan0e +it) e(istin" 0opan$

pra0ti0e and t)e Laor Code=

%. De0!arin" i!!e"a! t)e disissa! o* 9u!a0)e, #aonero, Casti!!o

and La"unad, and orderin" ABS-CBN to iediate!$ reinstate t)e

to t)eir *orer positions +it)out !oss o* seniorit$ ri")ts +it) *u!!

a0/+a"es and a!! ot)er onetar$ ene*its, *ro t)e tie t)e$ +ere

disissed up to t)e date o* t)eir a0tua! reinstateent=

1. A+ardin" ora! daa"es o* P&'','''.'' ea0) to 9u!a0)e,

#aonero, Casti!!o and La"unad= and,

8. A+ardin" attorne$s *ees o* &'H o* t)e tota! onetar$ a+ard

de0reed in t)is De0ision.

Costs a"ainst t)e respondent.

SO ORDERED.ARTURO D. BRION

Asso0iate #usti0e

2E CONCUR:


21/23

ANTONIO T. CARPIO

Asso0iate #usti0e

Chairperson

MARIANO C. DEL CASTILLO

Asso0iate #usti0e

ROBERTO A. ABAD

Asso0iate #usti0e

JOSE P. PEREZ

Asso0iate #usti0e

ATTESTATION

I attest t)at t)e 0on0!usions in t)e aove De0ision )ad een rea0)ed in

0onsu!tation e*ore t)e 0ase +as assi"ned to t)e +riter o* t)e opinion o* t)e Courts

Division.

ANTONIO T. CARPIO Asso0iate #usti0e

Chairperson

CERTIFICATION

Pursuant to Se0tion &1, Arti0!e >III o* t)e Constitution, and t)e Division

C)airpersons Attestation, it is )ere$ 0erti*ied t)at t)e 0on0!usions in t)eaove De0ision )ad een rea0)ed in 0onsu!tation e*ore t)e 0ase +as assi"ned to

t)e +riter o* t)e opinion o* t)e Courts Division.

REYNATO S. PUNO


22/23

C)ie* #usti0e

& Rollo, pp. 16-@6= 9i!ed pursuant to Ru!e 85 o* t)e Ru!es o* Court.% (!. at -%%= penned $ Asso0iate #usti0e A$ C. Laaro-#avier and 0on0urred in $ Asso0iate #usti0e Papio A.

Aarintos and Asso0iate #usti0e 9ran0is0o P. A0osta.1 (!. at pp.1%-11.8 arle' ulache, et al. #. NLRC, et al.5(!. at &%@-&1'= Petition, Anne( FE.G?(!. at &1&-&@1= Petition, Anne( F9.G@(!. at &61-&&= Petition, Anne( F;.G6LABOR CODE, Arti0!e %61.

Rollo, pp. %68-%= Petition, Anne( F#.G&'(!. at 1''-1&'= Petition, Anne( FM.G&&Supranote 5.&%Supranote @.&1Rollo, pp. 1&&-1&%= Petition, Anne( FL.G&8(!. at 1&1-1?&.&5Supranote %.&?T)e %''5 Revised Ru!es o* Pro0edure o* t)e Nationa! Laor Re!ations Coission, Ru!e >II, Se0tion &5.&@Supranote @.&6Supranote 1.&Supranote &'.%'Supranote .%&Dated #anuar$ &@, %''% and Apri! %&, %''1.%%Rollo, pp. &1-%68= Petition, Anne( FI.G%17.R. No. &?8&5?, Septeer %?, %''?, 5'1 SCRA %'8.%87.R. No. &%8%%8, 4ar0) &@, %''', 1%6 SCRA 8'8.%5Rollo, pp. 1%-88?.%?SECTION &. 9i!in" o* petition +it) Supree Court. - A part$ desirin" to appea! $ certiorari*ro a ud"ent or

*ina! order or reso!ution o* t)e Court o* Appea!s, t)e Sandi"ana$an, t)e Re"iona! Tria! Court or ot)er 0ourts

+)enever aut)oried $ !a+, a$ *i!e +it) t)e Supree Court a veri*ied petition *or revie+ on certiorari. T)e

petition s)a!! raise on!$ uestions o* !a+ +)i0) ust e distin0t!$ set *ort).%@7.R. No. &?&6&6, Au"ust %', %''6, 5?% SCRA 5'1.%6Supranote &.%Rollo, p. %[email protected]'Coent, p. %, 7round No. III= rollo, p. 11.1&Supranote 5.1%Rollo,p. &8= CA De0ision, p. ?, !ast para"rap).

11LABOR CODE, Arti0!e %[email protected] 1iguel Breer' Sales orce Union-$%GW9 #. 9ple, 7.R. No. 515&5, 9eruar$ 6, &6, &@' SCRA %5.15irst $hilippine (nternational Ban* #. Court of Appeals, 7.R. No. &&568, #anuar$ %8, &?, %5% SCRA %5.1?Rollo,p. %%= 4RC #oint De0ision, p. , para"rap) &.1@(!.at 1', NLRC reso!ution dated 4ar0) %8, %''?, p. &', par. &.16(!. at 1'= NLRC reso!ution dated 4ar0) %8, %''?, p. &', dispositive portion.1 LABOR CODE, Arti0!e %@.8':a' $ro!ucts, (nc. #. CA, 7.R. No. &?%8@%, #u!$ %6, %''5, 8?8 SCRA 588.8&Liton;ua Group of Ca"panies #.


23/23

fulache vs. absc-cbn

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