# 7 LABOR

CEBU METAL CORPORATION V Gregorio Robert Saliling (DONNA )

Facts:
This is a petition for review on certiorari under Rule 45 of the Rules of Court seeking the reversal of the Decision dated 18
February 2002, and the Resolution dated 27 June 2002, rendered by the Court of Appeals in CA-G.R. SP No. 66480, which
annulled and set aside the decision dated 9 October 2000, and resolution 1 dated 2 July 2001, of the National Labor Relations
Commission (NLRC) in NLRC Case No.V-000840-99. In its decision, the NLRC reversed and set aside the decision dated 27
May 1999 of Labor Arbiter Jesus N. Rodriguez, Jr. in favor of complainant employees, herein respondents Gregorio Saliling,
Elias Bolido, Manuel Alquiza and Benjie Amparado.
Respondent (Cebu Metal Corporation) is a corporation engage in buying and selling of scrap iron. In the Bacolod Branch, it has
three regular (3) employees holding such positions as Officer-in-Charge, a scaler and a yardman, whose salaries are paid
directly by its main office in Cebu while others are undertaking PAKIAO work in the unloading of scrap iron for stockpiling.
A mon g th o se wo rke rs who p re se n te d fo r wo rk in th e un loa d ing o f scra p iro n in t he a re a a re t he
une mpl oye d pe r s ons or tr i s ic a d dr i ve r s s ta ndi ng by i n the vi ci ni ty some of w hom a re the her e i n
c ompla i na nts . A s co mp en sa t io n fo r t he ir se rvice s, t he se wo rke rs in clu d ing th e he re in co mp la ina n t s
a re pa id a t th e ra t e of P1 5 .0 0 pe r to n fo r wh ich ea ch p e rso n ca n un loa d at le a st t wo (2 ) to th re e (3 )
t on s p e r h ou r o r can e a rn a t le a st P 24 0 .0 0 to P3 60 . 00 in e ig h t (8 ) ho u rs if wo rk is o n ly ava ilab le
wh ich pa ymen t n ece ssa ri ly in clud e s co st of livin g a llo wa n ce (CO L A ) a nd 13 t h - mon t h p ay.
Th e Ba co lod b u yin g st a t io n is ma in ly a st o ckya rd wh e re scra p me ta l de live re d by it s sup p lie rs a re
st o ckp ile d . Th e su p p ly of scrap me t a l is no t st e ad y a s it d ep en d s up on man y f a ct o rs, su ch a s
a va ila b ilit y of su p p lie s, p rice , co mp e t it ion an d de man d a mo ng o th e rs. Th e re a re th e ref o re (sic)
in st an ce s wh en in a sin g le we e k , o ne o r t wo t ru cks of scrap me t a l a re de live re d wh ile t he re a re
we e ks whe n n ot a sin g le t ru ck o f scrap met a l a re d e live red alt ho u gh t he re ma y a lso be we e ks whe n
q u ite a n u mb e r of t ru cks are d e live red t o t he st o ckya rd Th e a rriva ls of t he se t ru cks a nd t he de live rie s
o f scra p me ta l a re no t re g u la r an d t he sche du le s of d e live r ie s t o th e st o ckya rd a re no t kn o wn b ef o re
h an d b y th e re sp on d en t (pe t it io ne r co mpa n y).
Th e u n lo a de rs h ire d b y th e re sp on d en t to u nlo ad t he scrap me t a l f ro m th e se t ru cks are ba sica lly
sea so na l wo rke rs. Th e y a re h ired on ly wh en e ve r t he re a re t ru cks o f sup p lie rs of scra p me ta l t ha t
d e live r scra p me ta l to th e ya rd of th e re sp o nd en t an d th e se t ru cks ha pp en n ot to ha ve an y
a cco mp a n yin g t ru ck b o ys. Who e ve r a re a va ila b le an d who e ve r a re will ing to h e lp un loa d o n a
p a rt icu la r o cca sio n a re h ire d t o un loa d .
O n 10 Ja nu a ry 1 99 7, re spo nd en t co mp la in an t s f ile d a Co mp la in t be fo re th e Reg io na l A rb it ra t io n
B ran ch No V I , B aco lod Cit y f o r u nd e rpa yme n t of wa g e s an d no n -p ayme n t of th e fo llo win g b en e f it s: 1 )
1 3 t h mon t h p a y; 2 ) ho lid a y pa y; a nd 3 ) se rvice in cen t ive lea ve pa y.
O n 6 Ma rch 1 99 8, re sp on de n t co mp la in a nt s man if e ste d t ha t t he y we re in clu d ing in th e ir co mp la in t
a ga in st p et it io ne r co mp an y, th e cla im fo r ille ga l d ismissa l. S uch b e la t ed f iling wa s a lleg ed to h a ve
b ee n d ue t o t he f a ct t ha t th e y we re o n ly d ismisse d af t e r th e f iling o f th e ir co mp la in t .
O n 2 7 Ma y 19 99 , t he La bo r A rb ite r re nd e red a d e cision fo r Re sp o nd en t Ce bu Met a l Co rp o ra t io n ,
t h rou gh it s ma na ge r, MA RL O N RA DE N, is h e re b y o rde re d to REI NS TATE co mp la in an t s t o t he ir f o rme r
p osit io n s wit h b a ckwa g e s li mit ed t o o ne (1 ) yea r a nd 13 t h mon t h p ay, E RA an d COL A . I n ca se
re in sta t e men t is n o lo ng e r fe a sib le, co mp la in a nt s a re to be g ive n se pa ra t io n p a y e qu iva len t t o f if t ee n
(1 5 ) da ys to b e g iven f o r eve ry yea r o f se rvice . .

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C A

r o l l o ,

p p .

2 7 - 2 8 .

I n o rde rin g t he re in st a te me nt of re sp on de n t co mp la in an t s, t he La bo r A rb it e r f ou nd th e m t o h ave b ee n

il leg a lly dism issed f ro m th e ir e mp lo yme n t wit h p et it io ne r co mp an y. Re ga rd in g t he se con d issu e wh ich
is il leg a l d ismissa l, we f in d th e sa me me rit o riou s. Und e r A rt icle 2 80 of t he L ab o r Co de , co mp la in an t s
a re re gu la r e mp lo yee s sin ce t he y a re e n ga ge d t o pe rf o rm act ivit ie s wh ich a re ne ce ssa ry an d
d esi rab le in th e u sua l b usin e ss o r t ra de o f t he e mp lo ye r. Co mp la ina n t s jo b of lo ad in g, u n lo ad in g an d
st o ckp il ing scra p iro n is n ece ssa ry an d p a rt o f th e b u sin e ss of re spo nd en t . S in ce co mp la in an t s we re
d ismisse d wit ho u t ca u se an d du e p ro ce ss o f la w, t he y a re en t it led to re in sta t e men t wit h ba ck wa g e s
li mit ed t o o ne (1 ) yea r.
A gg rie ved , pe t it ion e r co mpa n y a pp ea le d t he f o reg o ing de cision to th e NL RC. I n a De cision 2 [1 2 ]
p ro mu lga t ed on 9 O ct ob e r 20 00 , th e Fo u rt h Divisio n of th e NL RC re ve rse d an d se t asid e th e ru lin g of
t he La bo r A rb ite r. I n ste ad , th e Co mmissio n h e ld th at re sp on d en t co mp la ina n t s we re no t re gu la r
e mp lo ye e s o f pe t it ion e r co mp an y, t hu s, th e y co u ld n ot ha ve be en il leg a lly dism issed . The ord e r o f
re ve rsa l wa s b a se d o n th e Co mmissio n s f ind in g t ha t t he pe tt y ca sh vou ch e rs sub m it te d b y p et it io ne r
co mpa n y con f ir med th e f act th at un loa d e rs we re p a id on p a kiao o r t a sk b asis at P1 5. 00 pe r met ric
t on . The Co m missio n f u rth e r ra t io na lize d t ha t wit h th e irre g u la r n at u re of th e wo rk in vo lved , t he
st op pa g e an d re su mp t io n o f wh ich de pe nd ed so le ly on t he ava ilab il it y o r su pp ly of scrap me t a l, it
n ece ssa rily fo llo ws th a t af t e r t he job of u n lo ad in g wa s co mp let e d an d u n lo a de rs we re p a id t he
con t ra ct p rice , t he la t t e r s wo rkin g re la t io n sh ip wit h pe t it ion e r co mp an y le g a lly e nd ed . The y we re
t he n f re e to o ff e r th e ir se rvice s to o th e rs. A s a n asid e, th e Co mmissio n o b se rve d t ha t it wa s
e rro ne ou s fo r th e L ab o r A rb it e r to ru le o n th e q ue st ion of wh e th e r o r no t re sp o nd en t co mp la ina n t s
we re ille ga lly dism issed sin ce t he co mp la in t f iled o n 1 0 Jan u a ry 19 97 fa ile d to in clud e su ch ma tt e r.
To be su re , th e co mp la in t me re ly i mpu t ed t he fo llo win g ca u se s o f act ion : 1 ) u nd e rpa yme nt o f wa ge s;
a nd 2 ) no n -pa ymen t of a ) 13 t h mon t h pa y; b ) h o lida y pa y; an d c) se rvice in ce n t ive lea ve p ay. No whe re
wa s t he mat t e r of il leg a l d ismissa l writ t e n on t he sa me . Th e issu e wa s f o rma lly b ro ug h t u p on ly o n 6
Ma rch 19 98 , via a Ma n ife st at io n , lo n g a f te r t he f ilin g of t he pa rt ie s re spe ct ive po sit ion p ap e rs.
I n vie w o f t he a bo ve , th e Co mmiss ion de cla red th at re sp on d en t co mp la in a nt s in va lid ly ra ised th e
issu e of ille ga l d ismissa l in t he po sit io n p ap e r th e y f iled b ef o re t he L ab o r A rb it e r.
I n a De cision da te d 1 8 Fe b rua ry 2 00 2, th e Cou rt of A pp ea ls an nu lle d a nd se t asid e t he a ssa iled
d ecisio n of t he NL RC. Sa id De cisio n wa s gro un de d e xclu sive ly on th e a rg u men t th a t th e Co mm ission
co mmit t e d g ra ve a bu se o f d iscret io n in re ve rsin g an d set t in g a sid e t he De cisio n o f t he L ab o r A rb ite r
sin ce pe t it io n e r co mp an y d id no t ma ke an issue ou t of t he La bo r A rb it e r s a ct io n in ru lin g on a cau se
o f a ct io n , i.e . , il leg a l dismissa l, no t spe cif ica lly st at e d in t he co mp la int . St a te d d iff e ren t ly, t he NL RC
g ra ve ly ab u se d it s discre t io n in ru lin g o n an issue th a t wa s a lleg ed ly n ot ra ise d o n ap pe a l b ef o re it .
WHE RE FO RE , fo re go in g pre mise s con sid e red , th e PE TI TI O N HAV I NG ME RI T is h e re b y GI V E N DUE
CO URS E . RE S ULTA NTLY, t he ch a llen ge d d ecisio n o f P ub lic Re sp on d en t Na t ion a l L ab o r Re la t ion s
Co mmiss ion is h e re b y A NNUL LE D A ND SE T AS I DE A ND THE JUDG ME N T O F THE L AB O R ARB I TE R.
I SS UE S :
1.

THE CO URT O F A PP E AL S E RRE D I N HOL DI NG THAT THE NATI O NA L L AB O R RE LATI O NS

CO MMI S S I O N FO U RTH DIV I S I O N, CEB U CI TY HA D NO A UTHO RI TY TO DIS MI S S P RIVATE
RE SP O NDE NTS CL A I MS FO R I LL E GA L DI S MIS S AL AND O THE R MO NE Y CL A I MS;

2.

THE CO URT O F A PP E AL S E RRE D I N HOL DI NG THAT THE NATI O NA L L AB O R RE LATI O NS

CO MMI S S I O N FO URTH DIV I S I O N, CE B U CI TY HA D NO A UTHO RI TY TO RE VE RS E THE L AB O R
A RB I TE RS DE CI S IO N; a nd

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S e e

n o t e

3 .

3.

THE CO URT O F A PP E AL S E RRE D I N G RA NTI NG THE PE TI TI O N FO R CE RTI O RA RI I N CA G . R. S P.

NO . 66 48 0 A ND I N A NNUL I NG (sic) THE DE CIS I O N O F THE NATI O NA L LA B O R RE L ATIO NS
CO MMI S S I O N.
RULI NG : We f ind me rit in t he pe t it ion .
I t wa s p la in e rro r f o r t he Cou rt o f Ap pe a ls t o a nn u l an d se t asid e t he d ecisio n of t he NL RC on th e
lo ne rea son th at th e la t te r d ismisse d P et it io ne r s ap pe a l o n th e b asis of an issue no t ra ised by
P riva t e Re sp on d en t in it s ap pe a l. A p a in st a kin g re vie w of t he de cisio n of th e NL RC wi ll rea d ily re ve a l
t ha t t he Co mmissio n s f ind in g t ha t re spo nd e nt co mp la in an t s we re n ot reg u la r e mp lo ye e s wa s t he
ra iso n d ' t re f o r th e su b se qu e nt t u rna ro un d of th e sta t e o f a ffa irs.
Wh a t th e NL RC ma de u se o f t o re ve rse th e La bo r A rb it e r s de cisio n wa s p re cise ly th e co n clu sio n of
t he la t te r t ha t re spo nd en t co mp la in an t s we re reg u la r e mp lo yee s o f p et it io ne r co mp an y. A cco rd in g to
t he Co mmiss ion , su ch co n clu sion wa s p re d icat e d me re ly o n t he con sid e ra t io n th a t re sp on de n t
co mp la in a nt s we re pe rf o rmin g a ct ivit ie s n ece ssa ry a nd d esira b le t o th e b usin e ss o r t ra de of t he i r
e mp lo ye r. B ase d on t he fa ct s o f t he ca se an d t he e vide n ce p re se nt e d by th e p a rt ie s to t he ca se a t
b a r, ho we ve r, th e NL RC a rrived a t a d ive rg en t con clu sion , wh ich we f u lly ag re e in .
I t is in te re st ing to n ot e t ha t t he La bo r A rb it e r h ad g iven cred en ce a nd p rob a t ive va lu e t o t he P et t y
Ca sh Vou che rs sub mit t e d b y th e re spo n de n t s. The pe tt y ca sh vou ch e rs sho w th a t co mp la in an t s a re
n ot p a id on ho u rly o r da ily b a sis as t he y wou ld like th is o ff ice to b elie ve bu t on p a kiao o r t a sk ba sis
a t P1 5. 00 p e r me t ric to n . The re is n o b asis t he n fo r co mp la in a nt s t o cla im th a t t he y a re un de rpa id
sin ce t he re is no min i mu m wa ge in th is t yp e o f wo rk. Co mp la in a nt s e a rn in g s de pe nd up on t he ir o wn
d ilig en ce a nd sp ee d in u n lo ad in g a nd st o ckp ilin g scra p iro n . Mo re imp o rt an t ly, it d ep en d s up on th e
a va ila b ilit y of scrap iro n to be un lo ad ed a nd sto ckp iled .
Th e re can b e n o il leg a l d ismissa l to spe a k of . Be sid e s, co mp la in a nt s can n ot cla im re g u la rit y in t he
h irin g eve ry t ime a t ru ck co me s lo ad ed wit h scrap me t a l. Th is is co n f irme d in t he P et t y ca sh Vou ch e rs
wh ich a re in th e na me s o f d iffe re n t le a de rs wh o a pp o rt ion t he a mou n t e a rn e d a mo ng h is me mb e rs.
Fin a lly, th e jud g men t of t he Co mmissio n th a t th e L ab o r A rb it e r act ed in co rre ct ly in ru lin g on a cau se
o f act ion , i. e . , il leg a l d ismissa l, no t sp e cif ica lly st at e d in t he co mp la in t , did no t co n st itu t e g ra ve
a bu se o f d iscre t io n on it s p a rt . I t s de cisio n simp ly exp re ssed an ob se rvat io n , to wit :
NL RC s p osit io n in t re at in g th e ma t t e r of t he no n -in clu sio n of t he issue o f il leg a l d ismissa l in th e
co mp la in t me re ly a s an a dd - on , ad jun ct o r a su p p le me n t t o it s f ind in g t ha t re spo n de n t co mp la in an t s
we re no t reg u la r e mp lo yee s o f p et it io ne r co mp an y.
WHE RE FO RE , in vie w o f th e fo reg o ing , t he in sta n t p et it io n is G RANTE D . Th e De cision d at ed 1 8
Fe b ru a ry 2 00 2, a nd th e Re so lu t io n da te d 27 Ju n e 2 00 2 , b ot h ren d e re d by t he Cou rt o f A pp ea ls in CA G . R. S P No . 66 48 0 , are he re b y RE VE RS E D a nd S E T AS I DE . A cco rd in g ly, th e De cisio n of t he NL RC
d at ed 9 O ct o be r 2 00 0 is REI NS TATE D . Co st s a ga in st re sp on de n t co mp la ina n t .