14. Labor Congress of the Philippines vs.

NLRC
GR No. 123938 May 21 1998
!"R#$ %"&"#"'N ( %avi)e *r. J.+
!,C$#+
- Private petitioners, represented by Labor Congress of the Philippines (LCP), are rank-and-file employees of respondent Empire Food
Products
- Petitioners filed a complaint against Empire, praying for money claims and direct certification of Labor Congress as their bargaining
representative
- !ct "##$ - LCP and Empire entered into a %emorandum of &greement (%!&), providing'
&) LCP is recogni(ed as the sole bargaining rep of the employees
)) *o ad+ust the ,ages of the employees
C) -educt .nion dues to the payroll
- /ov #, "##$ - LCP submitted to Empire a proposal for collective bargaining
- 0an 1#, "##" - LCP filed a complaint against Empire, alleging'
&) .nfair labor practices ( illegal lockout, dismissal)
)) .nion busting
C) violation of %!&
-) underpayment of ,ages
E) other damages
- *he Labor &rbiter ruled 2/ F&3!4 of Empire, but ordered the reinstatement of the employees ,ho resigned and those ,ho signed
5uitclaims and releases
- .pon appeal, /L4C remanded the case back to the Labor &rbiter
- *he Labor &rbiter, and &FF24%E- by /L4C, ruled that'
&) no prima facie evidence of e6istence of unfair labor practice, etc
)) Employees ,ere piece-rate ,orkers, hence not entitles to benefits
C) /ot underpaid
277.E87' ") 9hether the petitioners ,ho are piece-rate ,orkers are entitled to benefits
1) 9hether they are considered regular employees
:EL-' *hey are piece-rate ,orkers; they are entitled to benefits; they are regular employees
4&*2!' *hey are piece-rate ,orkers *hey are entitled to full back,ages, ho,ever, the amount is indeterminate, hence, there is need to
determine the varying degrees of production and days ,orked by each ,orker *hey are 4E<.L&4 E%PL!=E77 although they are
paid in piece-rate basis, based on the follo,ing factors' (a) their +ob is necessary and desirable in the usual business of Empire, (b)
petitioners ,ork for them throughout the year, their employment /!* :&32/< )EE/ -EPE/-E/* on a specific season, and ( c ) the
length of time they ,orked for Empire *hus, >,hile petitioners mode of compensation ,as on a ?per piece basis@, the status and nature
of their employment ,as that of regular employeesA
PE*2*2!/' <4&/*E-
(Prepared by' E&C %artine(, for e6clusive use of )lock B, Labor 7tandards)