DORELCO Employees Union-ALU-TUCP v. Don Orestes Romualdez Electric Cooperative, Inc., G.R. No. 240130 (Resolution), [March 15, 2021]

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DORELCO Employees Union-ALU-TUCP v. Don Orestes Romualdez Electric Cooperative, Inc., G.R. No. 240130 (Resolution), [March 15, 2021]

SECOND, LOPEZ, M. 

 

Timeliness of Appeal; CBA provision on Voluntary Arbitration; Mediation

 

The 10-day period in Article 276 of the Labor Code should be understood as the time within which the adverse party may move for reconsideration from the voluntary arbitrator's decision. This provides an opportunity for the party adversely affected by the voluntary arbitrator's decision to seek recourse before resorting to the court. After the resolution of the motion for reconsideration, the aggrieved party may appeal to the CA within 15 days from notice, by a petition for Review under Rule 43, of the Rules of Court. 

 

In 2012, the DORELCO Employees Union-ALU TUCP (Union) and Don Orestes Romualdez Electric Cooperative, Inc. (Company) submitted a dispute regarding salary adjustments under the collective bargaining agreement to arbitration before the National Conciliation and Mediation Board (NCMB). During this period, several employees retired, some of whom refused to sign quitclaims to receive their retirement benefits pending the arbitration's resolution. The voluntary arbitrator eventually ruled in favor of the employees, ordering the Company to pay salary increases for the years 2010 and 2011. The Company complied with the ruling and paid the retirement benefits, including salary differentials, to the retired employees who had not signed quitclaims. 

Later, the Union sought arbitration again to determine if the retired employees who had signed quitclaims were entitled to the same salary adjustments. The arbitrator ruled against them, stating that the quitclaims barred their claim for salary increases. Dissatisfied, the Union appealed to the Court of Appeals (CA), but the CA dismissed the petition, citing procedural grounds and the finality of the arbitrator's decision. The CA denied reconsideration, prompting the Union to file a petition for review before the Supreme Court. The main issue is the timeliness of the Union's appeal from the voluntary arbitrator's decision. Union argues that the proper period to appeal to the CA should be 15 days from receipt of the denial of the motion for reconsideration. Company maintains that the period to appeal is only 10 days from notice.

 

Whether or not the proper period to appeal to the CA should be 15 days from receipt of the denial of the motion for reconsideration. 

YES. The Supreme Court granted the Union's petition. The Court clarified that the 10-day period mentioned in Article 276 of the Labor Code allows aggrieved parties to file a motion for reconsideration before appealing to the CA within 15 days.  Thus, the proper period to appeal the voluntary arbitrator's decision to the CA is 15 days from receipt of the denial of the motion for reconsideration. The 10-day period in Article 276 of the Labor Code should be understood as the time within which the adverse party may move for reconsideration. After the resolution of the motion for reconsideration, the aggrieved party may appeal to the CA within 15 days from notice. This interpretation is in line with the principle of exhaustion of administrative remedies and provides an opportunity for the party adversely affected by the voluntary arbitrator's decision to seek recourse before resorting to the court. The Union filed its appeal within the prescribed period. CA erred in dismissing the petition solely on procedural grounds. Therefore, the case was remanded to the CA for a proper resolution on the merits.

 

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