Favila v. Second Of The Division Of The National Labor Relations Commission

KAPUNAN, J.:

The main issue in this case is whether the NLRC gravely abused its discretion in entertaining private respondent corporation's supplemental motion for reconsideration which was filed one and a half (1 1/2) months after its motion for reconsideration. Petitioners are all former employees of private respondent Pagdanan Timber Products, Inc. (PTPI), a domestic corporation which used to operate under a Timber License Agreement (TLA). As a result of the passage of Republic Act No. 7611 (The Strategic Environmental Plan for Palawan Act) on June 19, 1992, the Department of Environment and Natural Resources (DENR) issued Department Administrative Order No. 45 series of 1992 declaring a moratorium on all commercial logging in Palawan and canceling the private respondent's TLA.

Consequently, PTPI was compelled to put most of its employees on forced leave in the early part of 1993. On May 22, 1993, PTPI entered into a Memorandum of Understanding with the DENR to convert its TLA into a community-based forest management. Under the same Memorandum of Understanding, PTPI was supposed to give first priority to the payment of salaries and benefits of its employees from the proceeds of the sale of the remaining logs and lumber of PTPI.

After the first batch of employees was paid, no further payment was made to the other employees. After conciliation proceedings failed, the matter was forwarded to the Labor Arbiter for compulsory arbitration. Only the petitioners, however, appeared for the initial mandatory conference held on March 10, 1995 despite notice to both parties.

On March 21, 1995, the Labor Arbiter issued an order requiring the parties to submit their position papers on or before the next hearing set on May 22, 1995. Only petitioners showed up for the scheduled hearing on May 22, 1995, however. While petitioners submitted their position paper on April 19, 1995, private respondent never submitted its position paper.

After the hearing on May 22, 1995, the case was considered submitted for decision. On June 21, 1995, the Labor Arbiter rendered a decision in favor of petitioners.

WHEREFORE, premises considered, judgment is hereby rendered ordering respondent Pagdanan Timber Products, Inc. to pay all complainants the following: 1. Unpaid wages P118,422.00 2. Separation pay 259,028.00 3. Credit Union Shares 102,000.00 4. Cooperative Shares 22,813.00 5. Unused Annual Leave 16,616.50 6. 13th month pay 11,512.00 Total Claims