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LEPANTO CONSOLIDATED MINING COMPANY v.

LEPANTO LOCAL STAFF UNION


G.R. 161713 | August 20, 2008
J. Carpio

FACTS:
 Petitioner is a domestic mining corporation while respondent is the duly certified
bargaining agent od the petitioner’s employees occupying staff positions.
 Nov. 1998 – parties entered into their 4th CBA for the period of July 1 1998 to June 30
2000:
o Sec. 3 states that the Company shall continue to pay the nightshift differential for
work during the first and third shifts to all covered employees within the bargaining
unit as follows:
 First Shift (11PM to 7AM), differential pay is 20% of basic rate. Third Shift
(3PM to 11PM), differential pay is 15% of basic rate.
 For overtime work extending beyond regular shift (7AM to 3PM), no
nightshift differential added before the overtime pay is calculated.
o Sec. 9 grants longevity pay of P30 a month from 1998 onwards.
 Respondent filed a complaint with the NCMB-Cordillera Administrative Region because
petitioner failed to pay the differentials stated in the CBA.
 Ruling of Voluntary Arbitrator: Petitioner had the legal obligation to pay the longevity pay. VA
also agreed with the respondent in stating that surface workers on the regular shift who work beyond
3PM are entitled to nightshift differential pay. Section 3 of the CBA only states that nighshift
differential is excluded from the computation of overtime pay BUT does not mean it should not be
granted to the employees. BUT claim has already prescribed.
 Ruling of the Court of Appeals: Affirmed the decision of the Voluntary Arbitrator. In
addition, records show that the petitioner paid the nightshift differential of the employees
of the regular shift who worked beyond 3PM after the promulgation of the VA ruling. MR
denied.
ISSUE w/ RATIO:
Whether or not the CA erred in upholding the VA interpretation of the 4th CBA that regular shift
employees are entitled to night differential pay
NO.
 SC sustains the interpretation of the VA and the CA. The first paragraph of Sec. 3 provide
that petitioner shall pay night differential to employees in the 1st and 3rd shift BUT does
not state that workers who performed work beyond the hours of the second/regular shift
(7AM to 3PM) should not be given night differentials. It only provides that night
differential shall not be included in the computation of overtime pay.
 It is settled that in order to ascertain the intention of the parties, the VA may look into the
contractual history and evidence of past practices. Both VA and CA found that provision
in question was found in the first 3 CBAs and that during the effectivity of these CBAs,
petitioner paid the second shift employees night differential.
 CA correctly ruled that petitioner failed to present evidence that payment made before was
erroneous. In fact, it found that petitioners paid the contested night differential pay after
the ruling of the VA and upon pendency of the appeal.
WHEREFORE, we DENY the petition and AFFIRM the CA decision.

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