1st Set Case #157

Liberty Flour Mills Employees vs Liberty Flour

G.R - 58768 December 29, 1989
Facts:
On February 6, 1974, respondent Philippine Labor Alliance Council (PLAC) and Liberty Flour entered into
a 3-year CBA effective January 1, 1974 providing for a daily wage increase of PhP2.00 for 1974, PhP1.00
for 1975 and PhP1.00 for 1976. The parties also agreed to establish a union shop by imposing
membership in good standing for the duration of CBA as a condition for continued employment of
workers. PLAC complained against the company for non-payment of E-COLA under P.D. 525. A similar
complaint was filed on March 4, 1975, this time by petitioners who apparently were veering away from
PLAC. Evaristo and Biascan, after organizing a union, filed for a certification election among rank-and-file
employees. PLAC then expelled the two for disloyalty and demanded their dismissal by the respondent
company, who complied on May 20, 1975. The claims for E-COLA was dismissed as it was already
absorbed by the wage increase. The termination case in relation to back wages was also dismissed.

Issue:
Whether or not E_COLA was also absorbed in the wage increases and won dismissal of Evaristo and
Biascan was illegal.

Held:
The company agreed to grant the emergency allowance even before the obligation was imposed by
government (P.D. 525). What the petitioners claim they are being made to waive is the additional
allowance but the truth is they are not entitled to because they are already enjoying the stipulated
increases.
As with the case of illegal dismissal, the CBA concluded in 1974 was certifiable and in fact certified in
April 11, 1975 while the two were dismissed on may 20, 1975. Evidence show that after the cancellation
of the registration certificate of the Federation of Democratic Labor Unions, no other union contested
the exclusive representation of the PLAC, consequently there was no more legal impediment that stood
on the way of its validity and enforceability of the provisions of the collective bargaining agreement
entered into by and between respondent corporation and respondent union. Once it was duly entered
into and signed by the parties, a collective bargaining agreement becomes effective as between the
parties regardless of won the same has been certified by the BLR.