Cirtek Employees Vs Cirtek Electronics

G.R. No.
190515 June 6, 2011
CIRTEK EMPLOYEES LABOR UNION-

FEDERATION OF FREE WORKERS Petitioner,
vs.
CIRTEK ELECTRONICS, INC., Respondent.
FACTS
On August 24, 2005, a Memorandum of Agreement (MOA)

was entered into between Cirtek Electronics and Cirtek
Employees Labor Union Federation of Free Workers.
A motion for reconsideration and supplemental motion for

reconsideration was filed by respondent, Cirtek Electronics,
Inc., of the Court’s Decision dated November 15, 2010.
Cirtek Electronics avers that petitioner Cirtek Employees

Labor Union Federation of Free Workers, in filing the
petition for certiorari under Rule 65, availed of the wrong
remedy, hence, the Court should have dismissed the
petition outright. It goes on to aver that the Court erred in
resolving a factual issue – whether the August 24, 2005
Memorandum of Agreement (MOA) was validly entered
into –, which is not the office of a petition for certiorari.
Respondent-movant further avers that the MOA1 signed by

the remaining officers of petitioner Union and allegedly
ratified by its members should have been given credence by
the Court.
Furthermore, respondent-movant maintains that the

Secretary of Labor cannot insist on a ruling beyond the
compromise agreement entered into by the parties; and that,
as early as February 5, 2010, petitioner Union had already
filed with the Department of Labor and Employment
(DOLE) a resolution of disaffiliation from the Federation of
Free Workers resulting in the latter’s lack of personality to
represent the workers in the present case.
The motion is bereft of merit.
Respondent indeed availed of the wrong remedy of

certiorari under Rule 65. Due, however, to the nature of the
case, one involving workers’ wages and benefits, and the
fact that whether the petition was filed under Rule 65 or
appeal by certiorari under Rule 45 it was filed within 15
days (the reglementary period under Rule 45) from
petitioner’s receipt of the resolution of the Court of
Appeals’ Resolution denying its motion for
reconsideration, the Court resolved to give it due course.
As Almelor v. RTC of Las Piñas, et al. 2 restates:
Generally, an appeal taken either to the Supreme Court or

the CA by the wrong or inappropriate mode shall be
dismissed. This is to prevent the party from benefiting from
one’s neglect and mistakes. However, like most rules, it
carries certain exceptions. After all, the ultimate purpose
of all rules of procedures is to achieve substantial justice as
expeditiously as possible. (emphasis and underscoring
supplied)
Respecting the attribution of error to the Court in ruling on

a question of fact, it bears recalling that a QUESTION OF
FACT arises when the doubt or difference arises as to the
truth or falsehood of alleged facts,3 while a QUESTION OF
LAW exists when the doubt or difference arises as to what
the law is on a certain set of facts.
Ineluctably, the issue involves a determination and

application of existing law, the provisions of the Labor
Code, and prevailing jurisprudence. Intertwined with the
issue, however, is the question of validity of the MOA and
its ratification which, as movant correctly points out, is a
question of fact and one which is not appropriate for a
petition for review on certiorari under Rule 45. The rule,
however, is not without exceptions, viz:
This rule provides that the parties may raise only questions
of law, because the Supreme Court is not a trier of facts.
Generally, we are not duty-bound to analyze again and
weigh the evidence introduced in and considered by the
tribunals below. When supported by substantial evidence,
the findings of fact of the CA are conclusive and binding
on the parties and are not reviewable by this Court, unless
the case falls under any of the following recognized
exceptions:
(1) When the conclusion is a finding grounded

entirely on speculation, surmises and conjectures;
(2) When the inference made is manifestly mistaken,
absurd or impossible;
(3) Where there is a grave abuse of discretion;
(4) When the judgment is based on a

misapprehension of facts;
(5) When the findings of fact are conflicting;
(6) When the Court of Appeals, in making its

findings, went beyond the issues of the case and the
same is contrary to the admissions of both appellant
and appellee;
(7) When the findings are contrary to those of the

trial court;
(8) When the findings of fact are conclusions

without citation of specific evidence on which they
are based;
(9) When the facts set forth in the petition as well as

in the petitioners' main and reply briefs are not
disputed by the respondents; and
(10) When the findings of fact of the Court of

Appeals are premised on the supposed absence of
evidence and contradicted by the evidence on record.
(emphasis and underscoring supplied)
In the present case, the findings of the Secretary of Labor

and the appellate court on whether the MOA is valid and
binding are conflicting, the former giving scant
consideration thereon, and the latter affording it more
weight.
As found by the Secretary of Labor, the MOA came about

as a result of the constitution, at respondent’s behest, of the
Labor-Management Council (LMC) which, he reminded
the parties, should not be used as an avenue for bargaining
but for the purpose of affording workers to participate in
policy and decision-making. Hence, the agreements
embodied in the MOA were not the proper subject of the
LMC deliberation or procedure but of CBA negotiations
and, therefore, deserving little weight.
The appellate court, held, however, that the Secretary did
not have the authority to give an arbitral award higher than
what was stated in the MOA. The conflicting views drew
the Court to re-evaluate the facts as borne by the records,
an exception to the rule that only questions of law may be
dealt with in an appeal by certiorari under Rule 45.
As discussed in the Decision under reconsideration, the

then Acting Secretary of Labor Manuel G. Imson acted
well within his jurisdiction in ruling that the wage increases
to be given are ₱10 per day effective January 1, 2004 and
₱15 per day effective January 1, 2005, pursuant to his
power to assume jurisdiction under Art. 263 (g)4 of the
Labor Code.
While an arbitral award cannot per se be categorized as an

agreement voluntarily entered into by the parties because it
requires the interference and imposing power of the State
thru the Secretary of Labor when he assumes jurisdiction,
the award can be considered as an approximation of a
collective bargaining agreement which would otherwise
have been entered into by the parties. Hence, it has the
force and effect of a valid contract obligation between the
parties.5
In determining arbitral awards then, aside from the MOA,

courts considered other factors and documents including, as
in this case, the financial documents6 submitted by
respondent as well as its previous bargaining history and
financial outlook and improvements as stated in its own
website.7
The appellate court’s ruling that giving credence to the

"Pahayag" and the minutes of the meeting which were not
verified and notarized would violate the rule on parol
evidence is erroneous. The parol evidence rule, like other
rules on evidence, should not be strictly applied in labor
cases. Interphil Laboratories Employees Union-FFW v.
Interphil Laboratories, Inc. 8 teaches:
[R]eliance on the parol evidence rule is misplaced. In labor

cases pending before the Commission or the Labor Arbiter,
the rules of evidence prevailing in courts of law or equity
are not controlling. Rules of procedure and evidence are not
applied in a very rigid and technical sense in labor cases.
Hence, the Labor Arbiter is not precluded from accepting
and evaluating evidence other than, and even contrary to,
what is stated in the CBA. (emphasis and underscoring
supplied)
On the contention that the MOA should have been given

credence because it was validly entered into by the parties,
the Court notes that even those who signed it expressed
reservations thereto. A CBA (assuming in this case that the
MOA can be treated as one) is a contract imbued with
public interest. It must thus be given a liberal, practical and
realistic, rather than a narrow and technical construction,
with due consideration to the context in which it is
negotiated and the purpose for which it is intended.9
As for the contention that the alleged disaffiliation of the

Union from the FFW during the pendency of the case
resulted in the FFW losing its personality to represent the
Union, the same does not affect the Court’s upholding of
the authority of the Secretary of Labor to impose arbitral
awards higher than what was supposedly agreed upon in
the MOA. Contrary to respondent’s assertion, the
"unavoidable issue of disaffiliation" bears no significant
legal repercussions to warrant the reversal of the Court’s
Decision.
En passant, whether there was a valid disaffiliation is a

factual issue. Besides, the alleged disaffiliation of the
Union from the FFW was by virtue of a Resolution signed
on February 23, 2010 and submitted to the DOLE Laguna
Field Office on March 5, 2010 – two months after the
present petition was filed on December 22, 2009, – hence,
it did not affect FFW and its Legal Center’s standing to file
the petition nor this Court’s jurisdiction to resolve the
same.
At all events, the issue of disaffiliation is an intra-union

dispute which must be resolved in a different forum in an
action at the instance of either or both the FFW and the
Union or a rival labor organization, not the employer.
An intra-union dispute refers to any conflict between and

among union members, including grievances arising from
any violation of the rights and conditions of membership,
violation of or disagreement over any provision of the
union’s constitution and by-laws, or disputes arising from
chartering or disaffiliation of the union.
Indeed, as respondent-movant itself argues, a local union
may disaffiliate at any time from its mother federation,
absent any showing that the same is prohibited under its
constitution or rule. Such, however, does not result in it
losing its legal personality altogether. Verily, Anglo-KMU
v. Samahan Ng Mga Manggagawang Nagkakaisa Sa
Manila Bay Spinning Mills At J.P. Coats11 enlightens:
A local labor union is a separate and distinct unit primarily

designed to secure and maintain an equality of bargaining
power between the employer and their employee-members.
A local union does not owe its existence to the federation
with which it is affiliated. It is a separate and distinct
voluntary association owing its creation to the will of its
members. The mere act of affiliation does not divest the
local union of its own personality, neither does it give the
mother federation the license to act independently of the
local union. It only gives rise to a contract of agency where
the former acts in representation of the latter.
Whether then, as respondent claims, FFW "went against the

will and wishes of its principal" (the member-employees)
by pursuing the case despite the signing of the MOA, is not
for the Court, nor for respondent to determine, but for the
Union and FFW to resolve on their own pursuant to their
principal-agent relationship.
WHEREFORE, the motion for reconsideration of this

Court’s Decision of November 15, 2010 is DENIED.
SO ORDERED.

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G.R. No.

190515 June 6, 2011

CIRTEK EMPLOYEES LABOR UNION-

On August 24, 2005, a Memorandum of Agreement (MOA)

A motion for reconsideration and supplemental motion for

Cirtek Electronics avers that petitioner Cirtek Employees

Respondent-movant further avers that the MOA1 signed by

Furthermore, respondent-movant maintains that the

The motion is bereft of merit.

Respondent indeed availed of the wrong remedy of

Generally, an appeal taken either to the Supreme Court or

Respecting the attribution of error to the Court in ruling on

Ineluctably, the issue involves a determination and

(1) When the conclusion is a finding grounded

(3) Where there is a grave abuse of discretion;

(4) When the judgment is based on a

(5) When the findings of fact are conflicting;

(6) When the Court of Appeals, in making its

(7) When the findings are contrary to those of the

(8) When the findings of fact are conclusions

(9) When the facts set forth in the petition as well as

(10) When the findings of fact of the Court of

In the present case, the findings of the Secretary of Labor

As found by the Secretary of Labor, the MOA came about

As discussed in the Decision under reconsideration, the

While an arbitral award cannot per se be categorized as an

In determining arbitral awards then, aside from the MOA,

The appellate court’s ruling that giving credence to the

[R]eliance on the parol evidence rule is misplaced. In labor

On the contention that the MOA should have been given

As for the contention that the alleged disaffiliation of the

En passant, whether there was a valid disaffiliation is a

At all events, the issue of disaffiliation is an intra-union

An intra-union dispute refers to any conflict between and

A local labor union is a separate and distinct unit primarily

Whether then, as respondent claims, FFW "went against the

WHEREFORE, the motion for reconsideration of this

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