BPI vs BPI Employees Union

BPI vs BPI Employees Union

G.R. No.175678

August 22, 2012

DOCTRINE:  Art. 1702, NCC: in case of doubt, all labor legislation and all labor contracts shall be construed in favor of the safety and decent living of the laborer a. Any doubt or ambiguity in the contract between management and the union members should be resolved in favor of the latter.

FACTS:

Respondent Bank of the Philippine Islands Employees Union-Metro Manila (BPIEU-MM), a legitimate labor organization and the sole and exclusive bargaining representative of all the regular rank-and-file employees of petitioner BPI in Metro Manila and petitioner BPI have an existing Collective Bargaining Agreement (CBA), 3 which took effect on April 1, 2001. The CBA provides for loan benefits and relatively low interest rates. Thereafter, petitioner issued a "no negative data bank policy"5 for the implementation/availment of the manpower loans which the respondent objected to, thus, resulting into labor-management dialogues. Unsatisfied with the result of those dialogues, respondent brought the matter to the grievance machinery and afterwards, the issue, not having been resolved, the parties raised it to the Voluntary Arbitrator.

In his decision, the Voluntary Arbitrator found merit in the respondent's cause.  Aggrieved, petitioner appealed the case to the CA via Rule 43, but the latter affirmed the decision of the Voluntary Arbitrator with the modification that the award of attorney's fees be deleted. Petitioner filed a motion for reconsideration, but it was denied in a Resolution.

ISSUE: 

Whether or not the “No NDB policy” violates the CBA.

HELD: 

Yes, the policy violates the CBA. The CBA contains no provision on the “no negative data bank policy” as a prerequisite in the entitlement of the benefits it set forth for the employees T&Cs for availment are plain and clear, all they need is proper implementation to reach their objective Although it can be said that petitioner is authorized to issue rules and regulations pertinent to the availment and administration of the loans under the CBA, the additional rules and regulations, however, must not impose new conditions which are not contemplated in the CBA and should be within the realm of reasonableness.

The “no negative data bank policy” is a new condition which is never contemplated in the CBA and at some points, unreasonable to the employees because it provides that a. before an employee or his/her spouse can avail of the loan benefits under the CBA, the said employee or his/her spouse must not be listed in the negative data bank, or b. if previously listed therein, must obtain a clearance at least one year or six months as the case may be, prior to a loan application. 

Negotiations between an employer and a union transpire before they agree on the T&Cs contained in the CBA. If the petitioner, indeed, intended to include a “no negative data bank policy” in the CBA, it should have presented such proposal to the union during the negotiations. To include such policy after the effectivity of the CBA is deceptive and goes beyond the original agreement between the contracting parties.

No NDB policy is intended to exact a high standard of conduct from its employees. However, the terms and conditions of the CBA must prevail. Petitioner can propose the inclusion of the said policy upon the expiration of the CBA, during the negotiations for a new CBA, but in the meantime, it has to honor the provisions of the existing CBA. Art. 1702, NCC: in case of doubt, all labor legislation and all labor contracts shall be construed in favor of the safety and decent living of the laborer a. Any doubt or ambiguity in the contract between management and the union members should be resolved in favor of the latter. No doubt, in this case, that the welfare of the laborers stands supreme Petition DENIED.

 

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