G.R. No. 170054 January 21, 2013
Goya, Inc., hired contractual employees from PESO Resources Development Corporation (PESO) to perform temporary and occasional services in its factory in Makati. Goya, Inc. Employees Union–FFW (Union) requested for a grievance conference on the ground that the contractual workers do not belong to the categories of employees stipulated in the existing CBA.
The Union asserts that hiring of contractual employees, is not a management prerogative and in gross violation of the CBA tantamount to unfair labor practice (ULP). It noted that the contractual workers engaged have been assigned to work in positions previously handled by regular workers and Union members, in effect violating Section 4, Article I of the CBA.
The Company argued that: (a) the law expressly allows contracting and subcontracting arrangements; (b) the engagement of contractual employees did not, in any way, prejudice the Union, since not a single employee was terminated and neither did it result in a reduction of working hours nor a reduction or splitting of the bargaining unit c) Section 4, Article I of the CBA merely provides for the definition of the categories of employees and does not put a limitation on the Company’s right to engage the services of job contractors or its management prerogative to address temporary/occasional needs in its operation.