SMCEU-PTGWO v. Bersamira

Facts:

SanMig entered into contracts for merchandising services with Lipercon and D'Rite, independent contractors duly licensed by DOLE, to maintain its competitive position and in keeping with the imperatives of efficiency, business expansion and diversity of its operation. In said contracts, it was expressly understood and agreed that the workers employed by the contractors were to be paid by the latter and that none of them were to be deemed employees or agents of SanMig. There was to be no employer-employee relation between the contractors and/or its workers, on the one hand, and SanMig on the other.

Petitioner San Miguel Corporation Employees Union-PTWGO is the duly authorized representative of the monthly paid rank-and-file employees of SanMig with whom the latter executed a CBA which provides that "temporary, probationary, or contract employees and workers are excluded from the bargaining unit and, therefore, outside the scope of this Agreement."

The Union advised SanMig that some Lipercon and D'Rite workers had signed up for union membership and sought the regularization of their employment with SMC because some employees have been continuously working for SanMig for a period ranging from 6 months to 15 years and that their work is neither casual nor seasonal as they are performing work or activities necessary or desirable in the usual business or trade of SanMig. Thus, it was contended that there exists a "labor-only" contracting situation and wanted to be regularized.

The Union filed a notices of strike for unfair labor practice, CBA violations, and union busting. The two (2) notices of strike were consolidated and several conciliation conferences were held to settle the dispute before the National Conciliation and Mediation Board (NCMB) of DOLE.

Series of pickets were staged by Lipercon and D'Rite workers in various SMC plants and offices.

SMC filed a verified Complaint for Injunction and Damages before respondent Court to enjoin the Union from their acts. The Court issued a Temporary Restraining Order and set the application for Injunction for hearing. The Union filed a Motion to Dismiss which was then opposed by SanMig. The Motion was denied by the respondent Judge. The Court then issued the Order granting the application and enjoining the union from the acts thereof. Court issued the corresponding Writ of Preliminary Injunction after SanMig had posted the required bond of P100,000.00 to answer for whatever damages petitioners may sustain by reason thereof. Petitioners then sought for the nullification of the Writ before the SC while it also went to strike as some of the contractual workers were laid off. NCMB called the parties for conciliation.

Issue:

Did the respondent Court correctly assumed jurisdiction over the present controversy and properly issued the Writ of Preliminary Injunction to the resolution of that question, is the matter of whether, or not the case at bar involves, or is in connection with, or relates to a labor dispute.

Held:

While it is SanMig's submission that no employer-employee relationship exists between itself, on the one hand, and the contractual workers of Lipercon and D'Rite on the other, a labor dispute can

nevertheless exist "regardless of whether the disputants stand in the proximate relationship of employer and employee” provided the controversy concerns, among others, the terms and conditions of employment or a "change" or "arrangement" thereof. The existence of a labor dispute is not negative by the fact that the plaintiffs and defendants do not stand in the proximate relation of employer and employee.