Asia Brewery v. (Tpma)

DEL CASTILLO, J.:

In cases of compulsory arbitration before the Secretary of Labor pursuant to Article 263(g) of the Labor Code, the financial statements of the employer must be properly audited by an external and independent auditor in order to be admissible in evidence for purposes of determining the proper wage award. This Petition for Review on Certiorari assails the Court of Appeal's (CA) October 6, 2005 Decision1 and the February 17, 2006 Amended Decision2 in CA-G.R. SP Nos. 80839, and 83168 which modified the January 19, 2004 Decision3 of the Secretary of Labor in OS-AJ-0042-2003. Factual Antecedents The antecedents are aptly summarized by the CA: Respondent union Tunay Na Pagkakaisa ng mga Manggagawa sa Asia (TPMA) is a legitimate labor organization, certified as the sole and exclusive bargaining agent of all regular rank and file employees of petitioner corporation Asia Brewery, Incorporated (ABI).

The petitioner corporation, on the other hand, is a company engaged in the manufacture, sale and distribution of beer, shandy, glass and bottled water products. It employs about 1,500 workers and has existing distributorship agreements with at least 13 companies. Respondent union and petitioner corporation had been negotiating for a new collective bargaining agreement (CBA) for the years 2003-2006 since the old CBA expired last July 2003.

After about 18 sessions or negotiations, the parties were still unable to reconcile their differences on their respective positions on most items, particularly on wages and other economic benefits. On October 21, 2003, the Respondent union declared a deadlock. On October 27, 2003, Respondent union filed a notice of strike with the National Conciliation and Mediation Board (NCMB), docketed as NCMB-RB-IV-LAG- NS-10-064-03.

However, the parties did not come to terms even before the NCMB. On November 18, 2003, Respondent union conducted a strike vote. Out of the 840 union members, 768 voted in favor of holding a strike.

On November 20, 2003, petitioner corporation then petitioned the Secretary of the Department of Labor and Employment (DOLE) to assume jurisdiction over the parties' labor dispute, invoking Article 263 (g) of the Labor Code. In answer, Respondent union opposed the assumption of jurisdiction, reasoning therein that the business of petitioner corporation is not in dispensable to the national interest. On December 2, 2003, Respondent union filed before the Court of Appeals a petition for injunction, docketed as CA-G.R. SP No. 80839, which sought to enjoin the respondent Secretary of Labor from assuming jurisdiction over the labor dispute, or in the alternative, to issue a temporary restraining order, likewise to enjoin the former from assuming jurisdiction.

On December 19, 2003, the public respondent, through Undersecretary/Acting Secretary Manuel G. Imson, issued an order assuming jurisdiction over the labor dispute between the Respondent union and petitioner corporation. The pertinent portions of the said order read: x x x x "

WHEREFORE, based on our considered determination that the current labor dispute is likely to adversely affect national interest, this Office hereby ASSUMES JURISDICTION over the labor dispute between the ASIA BREWERY, INCORPORATED and the TUNAY NA PAGKAKAISA NGMANGGAGAWA SA ASIA pursuant to Article 263 (g) of the Labor Code, as amended. Accordingly, any strike or lockout in the Company, whether actual or impending, is hereby enjoined. Parties are hereby directed to cease and desist from taking any action that might exacerbate the situation. x x x x "To expedite the resolution of this dispute, the parties are directed to submit in three (3) copies, their Position Papers within ten (10) days from receipt of this Order and another five (5) days from receipt of the said position papers to submit their Reply. "1. The Company shall be required to provide: "a. Complete Audited Financial Statements for the past five (5) years certified as to its completeness by the Chief Financial Comptroller or Accountant; "b. Projected Financial Statements of the Company for the next three (3) years; "c. CBA history as to economic issues; and "d. The average monthly salary of the employees in this bargaining unit. "2. The Union is required to provide an itemized summary of their CBA demands with financial costing and sample CBA's (if any) in similarly situated or comparable bargaining units. "In the interest of speedy labor justice, this Office will entertain no motion for extension or postponement. "The appropriate police authority is hereby deputized to enforce this Order in case of defiance or the same is not forthwith obeyed. "SO ORDERED." x x x x On January 19, 2004, respondent union filed another petition for certiorari with the Court of Appeals, docketed as CA-G.R. SP No. 81639,imputing bad faith and grave abuse of discretion to the Secretary of Labor. Respondent union prayed therein for the nullification of the order of assumption of jurisdiction and the declaration that petitioner corporation is not an industry indispensable to the national interest. In the meantime, in a decision dated January 19, 2004, Secretary of Labor Patricia Sto. Tomas resolved the deadlock between the parties. As summarized in a later resolution, the public respondent granted the following arbitral awards: (1) WAGE INCREASES as follows: First Year = ₱18.00 Second Year = 15.00 Third Year = 12.00 Total =