Marcopper Mining Corporation v. National Labor Relations Commission

CRUZ, J.:

The issue before us is the correct interpretation of the following provision in Article XII of the collective bargaining agreement between petitioner Marcopper Mining Corporation and private respondent National Mines and Allied Workers Union (NAMAWU): Section 1. The COMPANY agrees to grant a severance pay equivalent to twenty (20) days of base wage for every year of service to regular employees covered by this Agreement who leave the COMPANY other than for cause before qualifying for early retirement under the Retirement Plan as provided hereunder, provided, however, that an employee who voluntarily resigns from the COMPANY shall not be entitled to the benefits herein unless he has completed at least ten (10) years of services. Any dismissal on ground of illness shall be treated in accordance with the provisions of the Labor Code as amended and its implementing rules and regulations except that where an employee who has rendered ten (10) or more years of service to the COMPANY shall be entitled to the above benefit in lieu of what is provided for under the Labor Code.

This case arose when three employees of the petitioner company, namely, Calixto Gamboa, Petronio Robles and Alfredo Rances, died after serving therein for 17, 12, and 18 years respectively. Pursuant to the CBA, the petitioner paid the heirs of the deceased employees the proceeds of the group life insurance plan and the cash value of their unused vacation and sick leaves, besides waiving certain amounts owing to it by Rances and Robles. The payments are itemized as follows.1 ALFREDO B. RANCES (Group Life Insurance Proceeds) P45,700.00 (Vacation & Sick Leave Balances) 1,830.65 TOTAL