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Case Digest in Labor II (Labor Relations) under Usec. JBJ

GOYA, Inc., vs. GOYA, Inc. Employees Union-FFW
G.R. No. 170054 January 21, 2013


Petitioner Goya, Inc. hired contractual employees from PESO Resources Development
Corporation (PESO) to perform temporary and occasional services in its factory. This prompted
respondent Goya, Inc. Employees Union – FFW to request for a grievance conference on the
ground that the contractual workers do not belong to the categories of employees stipulated in
the existing Collective Bargaining Agreement (CBA).

Respondent Union asserted that the hiring of contractual employees from PESO is not a
management prerogative and in gross violation of the CBA tantamount to unfair labor practice
(ULP). It noted that the contractual workers engaged have been assigned to work in positions
previously handled by regular workers and Union members, in effect violating Section 4, Article I
of the CBA, which only provides for three categories of employees in the Company.

The act of GOYA in hiring contractual employees as a ULP.

Labor Code of the Philippines, Title VI Unfair Labor Practices.


 Med-Arbiter dismissed the petition on the ground of inappropriate bargaining unit

 Petitioner moved for a MR with DOLE Secretary
 DOLE Secretary the order of the med-arbiter and ordered the holding of separate CE
between teaching and non-teaching personnel.
 Respondent filed a petition for certiorari before the CA.
 CA dismissed petition, affirmed the CA.
 Hence, this petition.


While the engagement of PESO is in violation of Section 4, Article I of the CBA, it does
not constitute unfair labor practice as it (sic) not characterized under the law as a gross violation
of the CBA. Violations of a CBA, except those which are gross in character, shall no longer be
treated as unfair labor practice. Gross violations of a CBA means flagrant and/or malicious refusal
to comply with the economic provisions of such agreement.

Petition is DENIED. The assailed Decision is AFFIRMED.


I agree as to the ruling that the company violated the CBA as what can be gleaned from
the clear provisions of the CBA. But the high court is still correct in holding that such act is not
tantamount to Unfair Labor Practice.
Case Digest in Labor II (Labor Relations) under Usec. JBJ

While unionism is being promoted and the participation of employees in the decision
making process of their employer is necessary to create an equilibrium, the courts should stay
vigilant on instances where the caprice of the union exceeds the rights given to them.

To recognize the fault of the company in hiring contractual employees and rectify the same
is just the right recourse and I strongly agree that to attribute such act as ULP is wanting too
much. As much that the rights of the employees are protected by the union, drawing the line
between upholding the rights and showing respect to your company is still necessary. Sometimes,
unions are to be reminded of the saying “do not bite the hands that feed you.”