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[Labor2] | [CBA Contract Duration and Renewal] 1

[Digest maker]

FVCLU-PTGWO v SANAMA-FVC-SIGLO
[GR NO. 176249] | [27 Nov 2009] | [Brion, J.]
Petitioner: FVC Labor Union Philippine Transport and General Workers Organization
(FVCLU-PTGWO)
Respondent: Sama-samang Nagkakaisang Manggagawa sa FVC-Solidarity of
Independent and General Labor Organizations

FACTS
Petitioner, the recognized bargaining agent of the rank-and-file employees of
the FVC Philippines, Incorp. signed a 5-yr CBA. At the end of the 5-yr term and
pursuant to the CBA, petitioner and the company entered into the renegotiation
of the CBA
Among the provisions modified is the duration, extending the original
5-yr period by 4 months
Nine days before the expiration of the originally-agreed five-year CBA term,
respondent SANAMA-SIGLO filed before the DOLE a petition for certification
election for the same unit covered by petitioners CBA.
Petitioner moved to dismiss on the ground that the certification was
filed outside the freedom period (outside 60 days)
Med-Arbiter Arturo Cosuco approved the petition on the ground that it was filed
outside the freedom period. SANAMA-SIGLO appealed to the SOLE Patricia Sto.
Tomas, who sustained SANAMA-SIGLOs position. She ordered the conduct of a
certification election.
DOLE Acting Sec Manuel Imson granted petitioners MR. He held that the
amended CBA extending the original period had been ratified by members of
the bargaining unit, some of whom organized themselves as SANAMA-SIGLO.
Since these members fully accepted and received the benefits from such
amendments, Acting Secretary opined that they also accepted the extended
period and cannot now file a petition for certification election based on the
original CBA expiration date.
SANAMA-SIGLOs MR to SOLE was denied.
CA found SANAMA-SIGLOs petition meritorious, setting aside the SOLE decisions
and reinstated the earlier ruling calling for a certification election.
The parties may renegotiate the other provisions of the CBA and should
not affect the 5-yr representation of the original CBA. If the
renegotiated period exceeds the original 5-year term, it would not
affect the right of another union to challenge the majority status within
60 days before the lapse of the original 5-yr term.
In case a new union wins in the certification election, such union is
required to honor and administer the renegotiated CBA throughout the
excess period.

ISSUE
1. WON the renegotiation of the period of the period effectively changed
the start of freedom period as to that of the end of the new term which
is beyond the 5-year period NO
RATIO
1. WON No.
a. Although SANAMA-SIGLO had abandoned their desire to contest the
representative status, the court deemed it necessary to resolve the issue.
b. LC 253-A provides that no petition questioning the majority status of the
incumbent bargaining agent shall be entertained and no certification
election shall be conducted outside of the 60-day freedom period. 1
c. FVCLU-PTGWO avers that in view of the renegotiated term, its exclusive
representation status should be fully in step with such term. When the
term of the CBA was extended, its exclusive bargaining status was
similarly extended so that the freedom period for the filing of a petition for
certification election should be counted back from the expiration of the
amended CBA term.
d. SC held that FVCLU-PTGWOs position is correct with respect to the
original 5-year term. While the parties may agree to extend the original 5-
year term together with all other CBA provisions, any amendment or term
in excess of 5 years will not carry with it a change in the unions exclusive
collective bargaining status.
e. LC 253-A expressly provides that the exclusive bargaining status cannot
go beyond 5 years and the representation is a legal matter. Despite an
agreement for a CBA with a life of more than 5 years, either as an original
provision or by amendment, the bargaining unions exclusive bargaining
status is effective only for 5 years and can be challenged within 60 days
prior to the expiration of the CBAs first 5 years.
f. However, if the parties enter into a contract with a term which does not
coincide with 5-year term, and such agreement is ratified by majority of
the members in the bargaining unit, the contract is valid and legal. But
the same will not affect the right of another union to challenge the
majority status of the incumbent bargaining agent within 60 days before
the lapse of the original 5-year term of the CBA.
g. The negotiated extension of the CBA term has no legal effect on FVCLU-
PTGWOs exclusive bargaining representation status which remained
effective only for 5 years ending on the original expiry date.

1 Terms of a collective bargaining agreement. Any Collective Bargaining Agreement that the parties
may enter into, shall, insofar as the representation aspect is concerned, be for a term of five (5) years.
No petition questioning the majority status of the incumbent bargaining agent shall be entertained and
no certification election shall be conducted by the Department of Labor and Employment outside of the
sixty day period immediately before the date of expiry of such five-year term of the Collective
Bargaining Agreement. All other provisions of the Collective Bargaining Agreement shall be
renegotiated not later than three (3) years after its execution.

Any agreement on such other provisions of the Collective Bargaining Agreement entered into within six
(6) months from the date of expiry of the term of such other provisions as fixed in such Collective
Bargaining Agreement, shall retroact to the day immediately following such date. If any such
agreement is entered into beyond six months, the parties shall agree on the duration of retroactivity
thereof. In case of a deadlock in the renegotiation of the collective bargaining agreement, the parties
may exercise their rights under this Code.
[Labor2] | [CBA Contract Duration and Renewal] 3
[Digest maker]

DECISION
Challenged decision and CA resolution is affirmed. But no certification
election can be enforced because of the abandonment of the petition.

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