gr_124630_1999

QUISUMBING, J.:

Asserting grave abuse of discretion amounting to lack or excess of jurisdiction, petitioners seek to annul the Resolutions1 of public respondent National Labor Relations Commission ("NLRC")2 promulgated on October 23, 1995 and January 16, 1996. The relevant factual and procedural antecedents of the case, as culled from the records, are as follows: Petitioners are regular workers of private respondent Cotabato Timberland Co. Inc. ("CTCI" for brevity) who were initially hired to perform milling and pilling [sic] works [sic] at EX-ARANETA by M & S Company, a sister company of CTCI.

Thereafter, EX-ARANETA was closed and the sawmill operation of M & S Company was transferred to private respondent TIMEX. SAWMILL, a subsidiary of respondent CTCI where Melchor Borbon is the Administrative Manager. The transfer was done sometime in July, 1989.3 The production and manufacture of plywood and veneer involves the following steps: (1) rebucking; (2) peeling; (3) drying; (4) splicing; (5) gluing; (6) pressing; (7) sizing; (8) putty application; (9) [s]andering; and (10) finishing [(]ibid.).

However, there are allegedly other odd jobs independent from the main plywood production or manufacturing operations, which require manpower, like the milling, piling and bundling of logs (sic) ends or sawn lumber in small scale, as well as clearing and hauling of firewood or waste firewood (ibid., Affidavit of Esperidion Tagalo, p. 1). In mid-1989, CTCI experienced an abnormal rise in demand for its plywood and other lumber products.

CTCI's regular workers could not allegedly cope with this demand, and this in turn led to an increased need for additional manpower on the part of CTCI to enable it to meet such demand (CTCI's Position Paper, p. 3).4 The hiring of herein [p]etitioners was facilitated through Teddy Arabi, who was tapped and hired by private respondent CTCI to recruit [p]etitioners under strict instructions. Majority of herein [p]etitioners are neighbors, friends and provincemates of Teddy Arabi.

In short, [p]etitioners were engaged, briefed and instructed by CTCI before the commencement of their respective works.

Teddy Arabi never maintained an office in private respondent's company since his main task is simply to recruit, under strict instruction, additional workers as the need arises.5 Respondent Teddy Arabi was allegedly provided office space within the Timex sawmill premises, but had no equipment, tools, and capital of his own to carry on his work; CTCI lent him the tools and equipment to undertake his milling, piling and bundling work (CTCI's Position Paper, Joint Affidavit of Geronimo Bala and Romeo Enriquez, p. 1, and Affidavit of Melchor Borbon, p. 1).

Work activities and schedules pertaining [to] sawmill manning and (sic) operations as well as other aspects of work of the complainants were set by CTCI, through administrative personnel like Geronimo M. Bala (Complainants' Position Paper, Annex K), Romeo Enriquez, a foreman/supervisor; Malone L. Paquiao, sawmill manager; and respondent Melchor D. Borbon, administrative manager (Teddy Arabi's Position Paper, p. 2 and Exhs. A, B, C & D; CTCI's Position Paper, Annex 3).

The complainants worked on shifting, initially, in three (3) shifts - 7:00 a.m. to 3:00 p.m.; then, 3:00 p.m. to 11:00 p.m.; and finally, 11:00 p.m.

to 7:00 a.m. (Complainants' Position Paper, p. 4 and Exh.

K). Subsequently, however, in January 1990, when demand for CTCI wood products was reduced, CTCI decided to cut the number of shifts to only two (CTCI's Position Paper, Affidavit of Teofilo Navales, p. 1).

Respondent Teddy Arabi appeared to have been paid by CTCI on the basis of sawmill production and/or number of workers or time used in a certain job or area of operation (ibid., Annexes 1 to 10-B, inclusive, [sic] of Affidavit of Esperidion Tagalog). The former respondent [sic] in turn paid the complainant[s] their wages, at the rate of P35.00 daily starting July 1989 and P50.00 daily, starting April 1990 (Complainants' Position Paper, p. 3), which they continued to have (sic) up to the time this case was filed on 17 October 1994 (ibid., pp. 3-4).

It appears that aside from said basic wages, the complainants were not paid anything else.6 Considering that herein [p]etitioners were exploited and underpaid, Teddy Arabi was also tasked by private respondent CTCI to double as an "enforcer" to sweet talk, threaten or silence any worker who would inquire or question their unconscionably P50.00 per day wage rate and other unpaid labor standards benefits. For effectivity and faster communication, private respondent CTCI provided Teddy Arabi and his brother Ronie (also an employee of CTCI) with hand-held radios so that the latter could immediately contact the former whenever some (sic) problem (sic) arises (sic) from among (sic) the workers in the work premises.

Because of this set-up, complaining workers usually do not anymore pursue their labor claims against CTCI with the Department of Labor and Employment. This has been the modus operandi of private respondent CTCI. Petitioners continued working as workers/laborers at TIMEX SAWMILL and were working under the full control and supervision of CTCI's personnel such as [c]heckers, [y]ard [m]asters, [c]lerk[s], [a]uditors, [f]ormen (sic) and [s]upervisors.

Eventually, the working conditions thereat became uncontrollable and Teddy Arabi became helpless in controlling the worker's demands. On May 26, 1994, a letter-complaint was filed by [a] group of disgruntled workers with the DOLE, Region IX Office, Zamboanga City for unpaid Labor Standards benefits due them. Thereafter, their group of complainants were continuously harassed and intimidated by management people and [were told] that if they will pursue their complaints, their services will be terminated and no benefits whatsoever shall be paid them.

Fortunately, private respondent CTCI managed to convince Teddy Arabi to intercede in this problem and subsequently, an amicable settlement was effected between CTCI and the complaining workers.

CTCI paid a total of P223,531.25 as settlement to (sic) the claims of the workers. However, CTCI, with ill-motives, maliciously made it appear in the signed quitclaims of the complaining workers that Teddy Arabi was the workers' employer and the one who paid their claims. However, the checks were issued in the name of CTCI.

Thereafter on June 17, 1994, [p]etitioners were warned verbally by Admin[istration] Personnel that allegedly (sic) top management has been dissatisfied with their work performance and production output results and that very soon their services will be terminated.ℒαwρhi৷ Eventually, [p]etitioners were barred from entering the main gate of respondent CTCI on July 31, 1994 by the company security guards when they reported for work. Petitioners were informed by the guards that they were already terminated effective that day and should not anymore report for work. Evidently, [p]etitioners' termination was without notice and without the observance of due process required under the Labor Code and the Constitution.

Thus, [p]etitioners, in search for justice filed their respective complaints with the NLRC Regional Arbitration Branch 9, Zamboanga City, for the (sic) illegal dismissal and other monetary claims. On May 17, 1995, Executive Labor Arbiter Rhett Julius Plagata rendered a decision in favor of herein [p]etitioners and against private respondent CTCI. The dispositive portion therof (sic) provided, and we [q]uote:

WHEREFORE, in view of the foregoing considerations, judgment is hereby rendered in the above-entitled case (1) Ordering Cotabato Timberland Company, Inc., through its president, manager, treasurer, cashier, or other proper officer, to pay the complainants the following awards in the following sums: (a) For each of Jang Lim, Wilfredo Mariga, Amil Maulana, Rolando Santos, Marciano Victoriano, Jr., Sherilyn Taupan, Dabo Dela Santos, Celso Araneta, Felix Baguio, Aneceto Las Pinas, Vicente Escalicas, Nestor Varona, Razel Taupan, Vicente Wong, Carlos Babiga, Benjamin Estrallado, Zaldyvar Juaini, Roger Mostero, Florante Amis, Augusto Reyes, Jr., Victoria Gomez, Murside Hadjirol, Sandra Sincay, Minda Latip, Han Ammang, Edison Sincay, Titing Arasad, Omar Bayan, Maritess Verdon, Abraham Bayan, Rodelyn Del Rosario, Jefferson Sincay, Sagga Salian, Cherry Emmang, Baning Elias, Tessie Bait-it, Elecio Paradaz, Jr., Moid Sahiron, Eddie Elias, Esmeralda Doble, Adayan Sukamo, Myla Mostero, Allan Pablan, Mahadum Mohammad, Jun Salcedo, Brando Diaz, Rolando Montejo, Abs Tapsi, Jakarta Suba, Wenceslao Alayan, Constancio Cativida, Restia Gomez, Nukkiya Servandi, Sandy Sincay, Jahirin Maulana, Mariam Daris, Aley Sajiin, Nursida Lahaman, Rahim Bayan, Salson Ibboh, Bausan Salian, Jimmylito Ayco, Maribeth Limba, Tatah de la Cruz, Jalsum Ibboh, Endang Tondo, Nuralyn Yarte, Tatah Solomon, Lacaya Abutan, Chelton Emmang, Boy Sahira, Eddie Cadion, Armando Dela Cruz, Susana Arabejo, Tatah Jose, Darwesa Salcedo, Hussein Ammang Ibrahim Elias, Marry Sadjail, Kemelde Okoy, Elias Paragas, and Maulay Taupan, Amelia Degarbis, John Okoy, and Luditha Talbobo: Separation Pay P7,432.80 Indemnity 1,000.00 Unpaid Wages 1,288.35 Wage Differentials 46,213.75 Night Shift Differential 705.26 Service Incentive Leave Pay 1,500.00 13th Month pay 9,493.12 Cost of Litigation and Attorney's Fees 6,772.32 Total