gr_205685_2015

Republic of the Philippines SUPREME COURT Manila THIRD DIVISION G.R. Nos. 205685-86 June 22, 2015 EMMANUEL H. BERALDE, HAYDEE B. OCHE, EDGAR E. FERNANDEZ, RONALD M. DUMADAUG, WENCESLAO L. CAMPORENDONDO, OCTAVE BRENDAN N. MARTINEZ, AVELINA C. NAVA, ALSADOM P. CIRILO, OSCAR H. GALARAGA, IGNACIO R. ALMARIO, JR., MISAMBO D. LLEJES, ERNESTO M. MOVILLA, SR., RONALD R. PANUGALING, NICHOLS M. SULTAN, SR., FRANCISCO M. VELASCO, SAMUEL G. WENCESLAO, EDMONDO B. ELECCION, SANNY L. ABDUL, JOEL T. AUTIDA, ANTONIO C. BAG-O, RODOLFO C. BARTIDO, NECTOR B. BASILISCO, GREGORIO Y. CANAMO, TOMAS M. CANSECO, REYSALVIO M. CARREON, ALEJANDRO A. CELIS, EMERISA S. BLANCADA, FELIX E. BUGWAT, RENIE N. BURGOS, DESIDERIO C. CABONITA, RICARDO P. DAG-UMAN, RUBEN B. DAVIDE, FELIPE G. DEMETILA, EDUARDO B. DIAL, EFREN L. ENCALLADO, GETULIO A. GOHIL, GUMERSINDO C. HAPE, DOMINGO M. LABTON, ARNOLD B. LIM, LEONARDO G. LOPEZ, SR., ALBINO M. LECERNAS, JOEL B. LUMERAN, MARTIN C. MAGLINTE, FOL A. MALAYA, ALFREDO D. MARAVILLAS, MARTINO R. MENDEZ, MAURO B. NAVAREZ, JR., CARLITO R. NAVARRO, AGUSTIN C. NOTARTE, JR., GONZALO G. OCHE, CARLITO G. OTOM, WALTER S. PANOY, ALEJANDRO T. PADOJAN, SR., GLESERIA L. PELDEROS, WILSON C. RODRIGUEZ, ARMAN A. ROSALINDA, ISIDRO M. RUSGAL, ISMAEL M. SANDANG, SR., WEA MAE B. SALATAN, EDWIN L. SARDIDO, PAULINO T. SEDIMO, CESARIO A. TANGARO, PABLITO B. TAYURAN, EDUARDO D. TUBURAN, ARMANDO I. VARGAS, JR., RENATO E. LUMANAS, WILFREDO C. PAUSAL, ALFREDO R. RAMIS, JOSE V. TUGAP, MANUEL G. WENCESLAO, MARIO D. ALBARAN, EDGAR P. ALSADO, SANTOS T. AMADO, JR., CHRISBEL A. ANG, BERNARDO C. AYUSTE, JR., RONALD B. BARTIDO, REYNALDO R. BAURA, SR., ANGELITO A. BIMBO, REYNALDO N. CAPUL, SONNY M. DAVIDE, REYNALDO A. LANTICSE, SR., MARIO M. LIMPIO, ARGIE A. OTOM, DANILO V. PABLIO, CARLITO H. PELLERIN, DANILO L. QUIMPAN, MARK ANTHONY M. SALATAN, DANTE S. SERAFICA, BUENVENTURA J. TAUB, JENRITO S. VIA, ROMULO A. LANIOHAN, JORGE L. QUIMPAN, ANTONIO C. SALATAN, ARLON C. AYUSTE, ERNESTO P. MARAVILLAS, DANIEL B. ADONA, and WILFREDO M. ALGONES, Petitioners, vs. LAPANDAY AGRICULTURAL AND DEVELOPMENT CORPORATION (GUIHING PLANTATION OPERATIONS), RICA REGINA L. DA VILA (Chairman), EDWIN T. FABREGAR, JR.

(VP-Banana Production); GERARDO IGNACIO B. ONGKIKO, (Senior VP-HR), CELSO S. SANCHEZ (Production Manager); and JESSEPEHINE 0. ALEGRE (Area Administrative Manager), Respondents. x - - - - - - - - - - - - - - - - - - - - - - - x PRESCO A. FUENTES and BRIAN TAUB, Petitioners, vs. LAPANDAY AGRICULTURAL AND DEVELOPMENT CORPORATION, (GUIHING PLANTATION OPERATIONS) RICA REGINA L. DAVILA, Chairman; EDWIN T. FABREGAR, JR., VP-Banana Production; GERARDO IGNACIO B. ONGKIKO, CELSO S. SANCHEZ, Production Manager, Respondents.

PERALTA,J.: This is a Petition for Review on Certiorari under Rule 45 of the Rules of Court seeking the reversal of the Consolidated Decision1 dated June 29, 2012 and Consolidated Resolution2 dated November 14, 2012 of the Court of Appeals-Cagayan de Oro City in CA-G.R. SP No. 035883 and CA-G.R. SP No. 04646.4 The facts, as culled from the records, are as follows: Lapanday Agricultural and Development Corporation (Lapanday) is engaged in the business of Banana plantation and exporting of the same to its clientele abroad. Petitioners are employees in the said corporation. Between the years 1992-1994, Lapanday retrenched and paid separation pay to some of its employees in a downsizing effort.

Thereafter, Lapanday allegedly re-hired some of their former employees with a promise that the land they worked on will be eventually turned-over to them, since the land was covered by the Comprehensive Agrarian Reform Program (CARP). The employees including several of the petitioners agreed to be retrenched and re-hired. Sometime in 1999, Lapanday again retrenched all its employees and offered to pay separation pay for their years of service.

Meanwhile, the land was not turned-over to them as promised since the Department of Agrarian Reform (DAR) issued an Order Dated February8, 1999, exempting said land from the coverage of the CARP. On March 29, 1999, Lapanday and the employees, including petitioners, signed a new employment contract. However, upon learning of the DAR's order of exemption, the employees filed a petition to revoke said order.

On January 4, 2008, Lapanday issued a Notice of Termination to all its employees, including herein petitioners. In the said notice of termination, it was stated that the company is instituting a retrenchment program pursuant to Section 5, Article 1 of the Collective Bargaining Agreement (CBA) to prevent losses as a result of the dramatical increase in production costs and lower productivity. The termination date for all employees was effective February 4, 2008.

Several employees signed the notice, in the hopes of getting their separation pay and other benefits. Petitioners, however, claimed that their separation pay was not given to them. They further alleged that those who refused to sign the notice were not allowed to enter the work premises unless they would sign the notice.

Lapanday, on the other hand, claimed that despite its financial predicament, separation pay was offered to its employees. Hence, without any recourse, petitioners filed a complaint for illegal dismissal. Emmanuel Beralde, et al. filed their Complaint on February 5, 2008,5 while Fuentes and Taub filed their Complaint on October 6, 2008.6 Lapanday claimed that in 2006, it was beset with financial reverses due to very low productivity, an onslaught of banana diseases, the adverse effects of the imposition of the aerial spraying ban, the reduction of leased areas due to CARP, the refusal of the landowners to renew petitioner's lease contracts, increase in production costs, and the extraordinary fluctuation in foreign exchange.

They averred to have implemented numerous saving measures; however, its financial condition continued to decline, thus, they opted to implement a retrenchment program. Lapanday further claimed that it consulted with the employee's union (Samahan Manggagawa ng Lapanday Guihing-SAMALAG), and filed the required notice with the Department of Labor and Employment (DOLE) before the implementation of said program. CA-G.R. SP No. 035887 On August 15, 2008, in NLRC RAB XI-02-00135-08,8 the Labor Arbiter rendered a Decision9 which reads, thus:

WHEREFORE, foregoing considered, judgment is hereby rendered as follows: 1. Dismissing the complaint for illegal dismissal and unfair labor practice; 2. Declaring that the retrenchment is valid; and 3. Ordering respondent LAPANDAY AGRICULTURAL AND DEVELOPMENT CORPORATION to pay complainants the sum of EIGHT MILLION TWO HUNDRED EIGHTY-SIX THOUSAND ONE HUNDRED SEVENTY-FOUR AND 53/100 PESOS (₱8,286,174.53) representing their separation pays. SO ORDERED.10 Undaunted, before the NLRC, petitioners insisted that they were illegally dismissed. On September 22, 2009, the NLRC reversed and set aside the appealed decision.11 The dispositive portion reads, thus: WHEREFORE, foregoing premises considered, the appealed decision is Reversed and Set Aside. In lieu thereof, a new judgment is rendered declaring the complainants, less Presco Fuente and Brian Taub, to have been illegally dismissed from employment, and thus ordering respondent Lapanday Agricultural Development Corporation to reinstate the said complainants to their former positions without loss of seniority rights and other privileges and to pay them full backwages from the dates they were dismissed until they are actually reinstated plus attorney's fees equivalent to ten (10%) percent of the aggregate monetary award due them, subject to computation by the Regional Arbitration Branch of origin during execution proceedings. SO ORDERED.12 Lapanday filed a motion for reconsideration, but the NLRC denied the same in a Resolution13 dated February 12, 2010. CA-G.R. SP No. 0464614 Meanwhile, in NLRC RAB XI-10-00881-08,15 the Labor Arbiter rendered a Decision16 dated July 30, 2009, which reads: WHEREFORE, foregoing premises considered, judgment is hereby rendered declaring the dismissal of complainants Presco A. Fuentes and Brina Taub as illegal: Accordingly, Lapanday Agricultural Development Corporation (Guihing Plantation Operation), represented by its authorized officers, is hereby (ordered) to pay complainants' backwages, to wit: 1. Presco A. Fuentes - ₱160,632.21 2. Brian M. Taub - ₱160,632.21