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35 Central Azucarera de Bais Employees Union V Central Azucarera de Bais Digest

- The Central Azucarera De Bais Employees Union (CABEU-NFL) filed a complaint against Central Azucarera De Bais (CAB) for unfair labor practice after negotiations for a new collective bargaining agreement reached a deadlock. - CAB countered that it was obliged to negotiate in good faith with a newly established union, CABELA, which represented over 90% of rank-and-file workers after they disassociated from CABEU-NFL. - The Court ruled that CABEU-NFL failed to prove that CAB acted with bad faith, as CAB believed it was responding to the wishes of the vast majority of its workers by negotiating with CABELA instead

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Cara Bello Pedrealba
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336 views1 page

35 Central Azucarera de Bais Employees Union V Central Azucarera de Bais Digest

- The Central Azucarera De Bais Employees Union (CABEU-NFL) filed a complaint against Central Azucarera De Bais (CAB) for unfair labor practice after negotiations for a new collective bargaining agreement reached a deadlock. - CAB countered that it was obliged to negotiate in good faith with a newly established union, CABELA, which represented over 90% of rank-and-file workers after they disassociated from CABEU-NFL. - The Court ruled that CABEU-NFL failed to prove that CAB acted with bad faith, as CAB believed it was responding to the wishes of the vast majority of its workers by negotiating with CABELA instead

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Cara Bello Pedrealba
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35 Central Azucarera De Bais Employees Union v Central Azucarera De Bais Facts: Respondent CAB is a corporation duly organized and

existing under the laws of the Philippines. CABEU-NFL is a duly registered labor union and a certified bargaining agent of the CAB rank-and-file employees. CABEU-NFL sent CAB a proposed CBA seeking increases in the daily wage and vacation and sick leave benefits of the monthly employees and the grant of leave benefits and 13th month pay to seasonal workers. CAB agreed to maintain the production bonus incentive and special production bonus and incentives, as well as to execute a pro-rated increase of wages every time the government would mandate an increase in the minimum wage. However, the additional and separate Christmas bonuses were not granted. Thus, the CBA resulted in a deadlock. CABEU-NFL filed a complaint for unfair labor practice for respondent CABs refusal to bargain with it. CAB countered that in view of the disassociation of more than 90% of rank-and-file workers from CABEU-NFL, it was constrained to negotiate and conclude in good faith a new CBA with CABELA, the newly established union by workers who disassociated from CABEU-NFL. CAB emphasized that it declined further negotiations with CABEU-NFL in good faith because to continue with it would serve no practical purpose. In concluding a CBA with CABELA, CAB claims that it acted in the best interest of the rank-and-file workers which belied bad faith. The complaint was dismissed by the Labor Arbiter. On appeal, the NLRC reversed the decision and found CAB guilty of unfair labor practice. However, the CA reversed the NLRC decision. The Union moved for a reconsideration but it was denied by the CA. Hence, this petition. Issue: Whether or not respondent company committed an unfair labor practice for violation of its duty to bargain collectively in good faith. Held: No. For a charge of unfair labor practice to prosper, it must be shown that CAB was motivated by ill will, bad faith, or fraud, or was oppressive to labor, or done in a manner contrary to morals, good customs, or public policy, and, of course, that social humiliation, wounded feelings or grave anxiety resulted x x x in suspending negotiations with CABEU-NFL. Notably, CAB believed that CABEU-NFL was no longer the representative of the workers. It just wanted to foster industrial peace by bowing to the wishes of the overwhelming majority of its rank-and-file workers and by negotiating and concluding in good faith a CBA with CABELA. Such actions of CAB are nowhere tantamount to anti-unionism, the evil sought to be punished in cases of unfair labor practices. Basic is the principle that good faith is presumed and he who alleges bad faith has the duty to prove the same. The Court is of the view that CABEU-NFL failed to substantiate its claim of unfair labor practice to rebut the presumption of good faith. In the resolution of labor cases, this Court has always been guided by the State policy enshrined in the Constitution that the rights of workers and the promotion of their welfare shall be protected. The Court is, likewise, guided by the goal of attaining industrial peace by the proper application of the law. Thus, it cannot favor one party, be it labor or management, in arriving at a just solution to a controversy if the party has no valid support to its claims. It is not within this Courts power to rule beyond the ambit of the law.

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