3. Honda Phils., Inv. Vs. SamahanngMalayangManggagawasa Honda Facts: 1.

A Collective Bargaining Agreement (CBA) was forged between petitioner Honda and respondent union SamahanngMala angManggagawasa Honda. !. CBA (effective until !""")# the compan would maintain the present practice in the implementation of the 1$ th month pa % shall grant 1&th month pa % computed on the same basis as computation of 1$ th month pa and shall continue the practice of granting% in its discretion% financial assistance to covered emplo ees in 'ecember of each ear% of not less that 1""( of basic pa . $. 1))*# the two parties started re+negotiations for the & th and ,th ears of their CBA. However the tal-s bogged down. a. .he union filed a /otice of Stri-e on the ground of bargaining deadloc-. b. Honda thereafter filed a /otice of 0oc-out. c. 'ole intervened and ordered both parties to cease and desist from committing acts that would aggravate the issue in which the complied. &. 1)))# 1nion filed !nd /otice of Stri-e on the ground of unfair labor practice alleging that Honda illegall contracted out wor- to the detriment of the wor-ers. Again '203 intervened and the stri-ing emplo ees were ordered to return to wor-. ,. /ovember !!% 1)))# management of Honda issues a memorandum announcing its new computation of 1$ th and 1&th month pa to be granted to all its emplo ees wherein the $1 da long stri-e shall be considered unwor-ed da s for purposes of computing said benefits. a. /ew formula# the amt e4uivalent to 151! of the emplo ees6 basic salar shall be deducted from these bonuses% with a commitment however that in the event that the stri-e is declared legal% Honda shall pa thamt deducted. b. .he union opposed the pro+rated computation of the bonuses. i. Matter brought to the Bureau of 7or-ing Conditions8'3C9S92/# invalidated computation. CA affirmed. ISSUE: 72/ the pro+rated computation of the 1$ th month pa and the other bonuses in 4uestion is valid and lawful: /2. RA I!: .he said pro+rated computation violates the provision of CBA. A CBA refers to the negotiated contract between labor organi;ation and the emplo er concerning wages% hours of wor- and all other terms and conditions of emplo ment in a bargaining unit. 9t also violates the provision of <' /o. *,1 which provided the minimum 1$ th month pa re4uired b law that it shall not be less that 151! of the total basic salar earned b an emplo ee within a calendar. .he act has ripened into practice and therefore cannot be eliminated% withdrawn% reduces and diminished% Honda did not adduce evidence to show that the 1$ th month and the 1&th month and financial assistance benefits were previousl sub=ect to deductions or pro+rating or that these were dependent upon the compan 6s financial standing.

"E#ISI!$: instant petition '3/93'. 'ecision of CA affirmed.