PHILIPPINE AIRLINES, INC. vs.

PHILIPPINE AIRLINES EMPLOYEES ASSOCIATION (PALEA)

G.R. No. 142399 June 19, 2007

FACTS:

On 6 February 1987, PAL and PALEA, the collective bargaining agent of the rank and file employees of
PAL, entered into a CBA that was to cover the period of 1986 – 1989. Part of said agreement required
PAL to pay its rank and file employees the 13th Month Pay (Mid-year Bonus) and Christmas Bonus.

Prior to the payment of the 13th month pay (mid – year bonus), PAL released an implementing guideline
on 22 April 1988. PALEA assailed the implementation of the foregoing guideline. PALEA, disagreeing
with PAL, filed a Complaint for unfair labor practice before the NLRC on 1 March 1989. The union
argued that "the cut-off period for regularization should not be used as the parameter for granting [the]
13thmonth pay considering that the law does not distinguish the status of employment but) the law
covers all employees."

The Labor Arbiter ruled that PAL was not guilty of unfair labor practice in withholding the grant of
the 13th Month Pay or Mid-Year Bonus.

On appeal to the NLRC, the assailed decision of the Labor Arbiter was reversed, CA affirmed and
denied PAL’s prayer for reconsideration.

On the other hand, the Securities and Exchange Commission (SEC) had mandated the rehabilitation of
PAL. On 17 May 1999, the SEC approved the "Amended and Restated Rehabilitation Plan" of PAL and
appointed a "permanent rehabilitation receiver for the latter."

ISSUE:

Whether the claim of the PALEA shall be suspended with the rehabilitation of PAL.

HELD:

Yes. The pertinent law concerning the suspension of actions for claims against corporations is
Presidential Decree No. 902-A. It provides the SEC:

Section 6(c): To appoint one or more receivers of the property, real or personal, which is the subject of
the action pending before the Commission in accordance with the pertinent provisions of the Rules of
Court in such other cases whenever necessary in order to preserve the rights of the parties-litigants
and/or protect the interest of the investing public and creditors: x x x Provided, finally, That upon
appointment of a management committee, the rehabilitation receiver, board or body, pursuant to this
Decree, all actions for claims against corporations, partnerships or associations under management or
receivership pending before any court, tribunal, board or body shall be suspended accordingly.

The term "claim," as contemplated in Sec. 6(c) of Presidential Decree No. 902-A, refers "to debts or
demands of a pecuniary nature. It means 'the assertion of a right to have money paid.'" 24 In the case at
bar, in the event that the present petition is found to be without merit, PAL will be obliged to satisfy the
pecuniary claims of PALEA – the payment of the 13th Month Pay for the particular year to all rank and
file employees whether or not regularized by 30 April 1988.

All told, this Court is constrained to suspend the progress, development and other proceedings in the
present petition.

MARCH 12, 2008 DECISION:

On 28 September 2007, however, the SEC issued an Order26 granting petitioner PAL’s request to exit from
rehabilitation after successfully stabilizing its financial operations. Hence, the suspension earlier issued by
this Court is hereby lifted, making the present Petition ripe for resolution.