FVC Labor Union- Philippine Transport and General Workers Organization  Med-Arbiter: Dismissed PCE for being filed
ed PCE for being filed outside freedom period counted
(FVCLU-PTGWO) v Sama-Samang Nagkakaisang Manggagawa sa FVC
Solidarity of Independent and General Labor Organizations (SANAMA-FVC-
SIGLO)
Nov 27, 2009|Brion, J.| Collective Bargaining Agreement; Terms of Contract
Digester: Anna Mickaella Lingat
SUMMARY: FVCLU-PTGWO is the bargaining agent of the rank-and-file employees
of FVC Philippines Incorporated. It signed a five-year CBA, which was renegotiated
and hence, extended by 4 months. On January 21, 2003 or nine days before the
expiration of the original CBA term, SANAMA-SIGLO filed a PCE, but this was
opposed by FVCLU-PTGWO because it was outside the freedom period or 60 days
prior to the expiration of the renegotiated CBA, which is on May 31, 2003. Although
SANAMA-SIGLO eventually desisted from pursuing the case, the Court held that the
PCE was seasonably filed by SANAMA-SIGLO because the amendment of the CBA
did not extend the extension of the union’s exclusive bargaining status, which remained
effective only until January 31, 2003.
DOCTRINE: While the parties may agree to extend the CBAs original five-year term
together with all other CBA provisions, any such amendment or term in excess of five
years will not carry with it a change in the unions exclusive collective bargaining status.
By express provision of the Article 253-A, the exclusive bargaining status cannot go
beyond five years and the representation status is a legal matter not for the workplace
parties to agree upon. Despite an agreement for a CBA with a life of more than five
years, either as an original provision or by amendment, the bargaining unions exclusive
bargaining status is effective only for five years and can be challenged within sixty (60)
days prior to the expiration of the CBAs first five years.
FACTS:
 Petitioner FVCLU-PTGWO is the recognized bargaining agent of the rank-and-file
employees of the FVC Philippines Incorporated. It signed a five-year CBA with the
company (from February 1, 1998 to January 30, 2003).
 At the end of the third year of the five-year term and pursuant to the CBA,
FVCLU-PTGWO and the company entered into a renegotitation of the CBA and
modified the CBA’s duration.
o Art XXV, Sec 2 of the renegotiated CBA provides that this re-negotiation
agreement shall take effect beginning February 1, 2001 and until May 31, 2003,
extending the original five-year period of the CBA by 4 months.
 On January 21, 2003, 9 days before the January 30, 2003 expiration of the
originally-agreed CBA term, Sama-samang Nagkakaisang sa FVC-Solidarity of
Independent and General Labor Organizations (SANAMA-SIGLO) filed before
DOLE a petition for certification election for the same rank-and-file covered by
FVCLU-PTGWO.
o FVCLU-PTGWO moved to dismiss the petition on the ground that the
certification election petition was filed outside the freedom period or outside
the 60 days before the expiration of the CBA on May 31, 2003.
from the May 31, 2003 expiry date of the amended CBA.
 DOLE Secretary Tomas: reversed Med-Arbiter and ordered the conduct of
certification election. FVCLU-PTGWO moved for the reconsideration.
 DOLE Acting Secretary Imson: granted MR; dismissed PCE.
o The amended CBA, which extended the representation aspect of the original
CBA by 4 months, had been ratified by members of the bargaining unit some
of whom later organized themselves as SANAMA-SIGLO.
o Since these SANAMA-SIGLO members fully accepted and in fact received the
benefits arising from the amendments, they also accepted the extended term of
the CBA and cannot now file a petition for certification election based on the
original CBA expiration date.
o MR denied.
 CA: ruled in favor of SANAMA-SIGLO; reversed DOLE’s order.
o While the parties may renegotiate the other provisions (economic and non-
economic) of the CBA, this should not affect the five-year representation
aspect of the original CBA.
o If the duration of the renegotiated agreement does not coincide with but rather
extends the original five-year term, the same will not adversely affect the right
of another union to challenge the majority status of the incumbent bargaining
agent within 60 days before the lapse of the original five-year term of the CBA.
o In the event that a new union wins in the certification election, such union is
required to honor and administer the renegotitated CBA throughout the excess
period.
RULING: Dismissed petition. Affirmed CA’s decision, but nevertheless declare that no
certification election can be enforced as this petition has effectively been abandoned.
Whether the amendment of the CBA extending its term carry with it an
extension of the union’s exclusive bargaining status? – NO
Whether a PCE may be filed within the freedom period of the original CBA? -
YES
 PETITIONER’S ARGUMENTS:
o The extension of the CBA term also changed the unions exclusive bargaining
representation status and effectively moved the reckoning point of the 60-day
freedom period from January 30 to May 30, 2003.
o Thus, when the term of the CBA was extended, its exclusive bargaining status
was similarly extended so that the freedom period for the filing of a PCE
should be counted back from the expiration of the amended CBA term.
o SANAMA-SIGLO is estopped from questioning the extension of the CBA
term under the amendments because its members are the very same ones who
approved the amendments, including the expiration date of the CBA, and who
benefited from these amendments.
o The representation petition had been rendered moot by a new CBA it entered
into with the company covering the period June 1, 2003 to May 31, 2008.
 SANAMA-SIGLO abandoned their desire to contest the representative status of  Despite an agreement for a CBA with a life of more than five years, either as an
FVCLU-PTGWO. original provision or by amendment, the bargaining unions exclusive
o Since the promulgation of the CA decision (three years after the PCE was bargaining status is effective only for five years and can be challenged within
filed), the local leaders of SANAMA-SIGLO had stopped reporting to the sixty (60) days prior to the expiration of the CBAs first five years.
federation office or attending meetings. The SANAMA-SIGLO counsel, who  San Miguel Corp Employees Union PTGWO v Confesor: In the event however, that the
is also the national president, is no longer in the position to pursue the present parties, by mutual agreement, enter into a renegotiated contract with a term of
case because the local union and its leadership had given up.  three (3) years or one which does not coincide with the said five-year term and said
o A new CBA had already been signed up by FVCLU-PTGWO and the agreement is ratified by majority of the members in the bargaining unit, the subject
company. contract is valid and legal and therefore, binds the contracting parties. The same
 Nevertheless, the Court still deemed it necessary to resolve the question of law will however not adversely affect the right of another union to challenge the
raised since this exclusive representation status will inevitably recur in the future. majority status of the incumbent bargaining agent within sixty (60) days before the
lapse of the original five (5) year term of the CBA.
 Art 253-A of the Labor Code provides:
o Terms of a collective bargaining agreement. Any Collective Bargaining As applied in this case:
Agreement that the parties may enter into, shall, insofar as the representation  The CBA was originally signed for a period of five years (expires on January 30,
aspect is concerned, be for a term of five (5) years. No petition questioning the 2003), with a provision for a renegotiation of the CBAs other provisions at the end
majority status of the incumbent bargaining agent shall be entertained and no of the 3rd year. Thus, prior to January 30, 2001, the workplace parties sat down for
certification election shall be conducted by the Department of Labor and renegotiation but instead of confining themselves to the economic and non-
Employment outside of the sixty day period immediately before the date of economic CBA provisions, also extended the life of the CBA for another four
expiry of such five-year term of the Collective Bargaining Agreement. All other months.
provisions of the Collective Bargaining Agreement shall be renegotiated not  This negotiated extension of the CBA term has no legal effect on the FVCLU-
later than three (3) years after its execution. PTGWOs exclusive bargaining representation status which remained effective only
o Any agreement on such other provisions of the Collective Bargaining for 5 years ending on the original expiry date of January 30, 2003.
Agreement entered into within six (6) months from the date of expiry of the  Hence, sixty days prior to this date, or starting December 2, 2002, SANAMA-
term of such other provisions as fixed in such Collective Bargaining SIGLO could properly field a PCE.
Agreement, shall retroact to the day immediately following such date. If any  Its petition filed on January 21, 2003 or 9 days before the expiration of the CBA
such agreement is entered into beyond six months, the parties shall agree on was seasonable filed.
the duration of retroactivity thereof. In case of a deadlock in the renegotiation
of the collective bargaining agreement, the parties may exercise their rights
under this Code.
 This provision is implemented through Book V, Rule VIII, Sec 14(b):
o Sec. 14. Denial of the petition; grounds. The Med-Arbiter may dismiss the
petition on any of the following grounds: x x x x
o (b) the petition was filed before or after the freedom period of a duly
registered collective bargaining agreement; provided that the sixty-day period
based on the original collective bargaining agreement shall not be affected by
any amendment, extension or renewal of the collective bargaining agreement.
 While the parties may agree to extend the CBAs original five-year term
together with all other CBA provisions, any such amendment or term in
excess of five years will not carry with it a change in the unions exclusive
collective bargaining status.
 By express provision of the Article 253-A, the exclusive bargaining status cannot go
beyond five years and the representation status is a legal matter not for the
workplace parties to agree upon.