llora motors, inc. vs. drilon, 179 scra 175(1989)

7/25/2019 Llora Motors, Inc. vs. Drilon, 179 SCRA 175(1989)

1/19

VOL. 179, NOVEMBER 7, 1989

175

Llora Motors, Inc. vs. Drilon

G.R. No. 82895. Nove!er 7, 1989."

LLOR# MO$OR%, IN&. an'(or &ON%$#N$INO RLO$#, )R., *etitioners, vs. +ON.R#N-LIN DRILON in is ca*acit/ as te %ecretar/ o0 te De*artent o0 La!or an'E*lo/ent, +ON. D#NIEL M. L%, DOMINGO +. #3#N$# an' O%R N. #BELL#,in teir ca*acit/ as &oissioners o0 te National La!or Relations &oission

4NLR&, Manila, %econ' Division, +ON. RIRDO N. OL#IRE, in is ca*acit/ as teLa!or #r!iter o0 te Re6ional #r!itration Branc No. I, %an ernan'o, La nion an'3RIMI$IVO #LVI#R, res*on'ents.

La!or Relations La!or #r!iters De 3rocess # 0oral or trial t/*e earin6 is not atall ties essential to 'e *rocess Reireents satis:e' ;ere *arties are a?it res*ect tote :rst isse, *etitioners alle6e tat 0ailre !/ te La!or #r!iter to con'ct a 0oralearin6, *rior to ren'ition o0 @'6ent, reslte' in violation o0 teir constittionalri6t to 'e *rocess. ?e 'o not a6ree. $is &ort as el' in te *ast tat a 0oral

or trialAt/*e earin6 is not at all ties an' in all instances essential to 'e *rocess,te reireents o0 ;ic are satis:e' ;ere *arties are a


2/19

" $+IRD DIVI%ION.

17C

17C

%3REME &OR$ RE3OR$% #NNO$#$ED


*t 0or;ar' !/ *etitioners st 0ail.

%ae %ae Retireent !ene:ts ?en retireent !ene:ts a/ accre&o*lsor/ an' contri!tor/ caracter on te *art o0 !ot te e*lo/er an' tee*lo/ee.>E=aination o0 #rticle 287 a!ove so;s tat entitleent to retireent!ene:ts a/ accre eiter 4a n'er e=istin6 la;s or 4! n'er a collective!ar6ainin6 a6reeent or oter e*lo/ent contract. It is at once a**arent tat#rticle 287 'oes not itsel0 *r*ort to i*ose an/ o!li6ation *on e*lo/ers to set* a retireent scee 0or teir e*lo/ees over an' a!ove tat alrea'/

esta!lise' n'er e=istin6 la;s. In oter ;or's, #rticle 287 reco6niFes tat e=istin6la;s alrea'/ *rovi'e 0or a scee !/ ;ic retireent !ene:ts a/ !e earne' oraccre' in 0avor o0 e*lo/ees, as *art o0 a !roa'er social secrit/ s/ste tat*rovi'es not onl/ 0or retireent !ene:ts !t also 'eat an' 0neral !ene:ts,*eranent 'isa!ilit/ !ene:ts, sicness !ene:ts an' aternit/ leave !ene:ts. #s iscoon *lace no;le'6e, te %ocial %ecrit/ #ct *rovi'es 0or retireent !ene:ts;ic essentiall/ consist o0 te ri6t to receive a ontl/ *ension 0or te rest o0 tecovere' e*lo/ees li0e *rovi'e' tat 41 sc e*lo/ee a' *ai' at least onen're' t;ent/ 412H ontl/ contri!tions *rior to retireent an' 42 asreace' te a6e o0 si=t/ 4CH /ears 4i0 is salar/ is less tan 3HH.HH a ont or C5/ears. $e retireent scee ere esta!lise' is co*lsor/ an' contri!tor/ in

caracter on te *art o0 !ot te e*lo/er an' te e*lo/ee, !ace' * !/criinal sanctions an' a'inistere' !/ a lar6e an' ela!orate !reacrac/.

%ae %ae %ae $erination 3a/ &on'itions in or'er tat *a/ents n'er aretireent *lan a/ !e cre'ite' a6ainst te terination *a/.>?at nee's to !estresse', o;ever, is tat %ection 1J o0 I*leentin6 Rle I, lie #rticle 287 o0 teLa!or &o'e, 'oes not *r*ort to reire Kterination *a/ to !e *ai' to an


3/19

e*lo/ee ;o a/ ;ant to retire !t 0or ;o no a''itional retireent *lan a'!een set * !/ *rior a6reeent ;it te e*lo/er. $s, %ection 1J itsel0 s*eas o0an e*lo/ee K;o is retire' *rsant to a !onaA:'e retireent *lan or inaccor'ance ;it te a**lica!le in'ivi'al or collective a6reeent or esta!lise'e*lo/er *olic/. ?at %ection 1J o0 I*leentin6 Rle I a/ !e seen to !e sa/in6

is tat ;ere terination *a/ is oter;ise *a/a!le to an e*lo/ee n'er ana**lica!le *rovision o0 te La!or &o'e, an' an a''itional or consensal retireent*lan e=ists, ten *a/ents n'er sc retireent *lan a/ !e cre'ite' a6ainst teterination *a/ tat is 'e, s!@ect, o;ever, to certain con'itions. $esecon'itions are 4a tat *a/ents n'er te a''itional retireent *lan cannot avete e


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#lviar cannot !e @sti:e' eiter as 4a''itional retireent !ene:ts or as terination*a/ an' ence constitte' an act ;itot or in e=cess o0 @ris'iction.

3E$I$ION 0or certiorari ;it *reliinar/ in@nction to revie; te resoltion o0 te

National La!or Relations &oission.

$e 0acts are state' in te o*inion o0 te &ort.

a!es #ssociates La; OPce 0or *etitioners.

rancisco $. Gal!erto an' +!erto M. $taan, %r. consel an' $*as ROIRe*resentatives 0or #lviar.

ELI&I#NO, ).

$e s!@ect o0 te *resent 3etition 0or &ertiorari ;it 3reliinar/ In@nction is teResoltion1 'ate' 2H )anar/ 1988 o0 te *!lic res*on'ent National La!orRelations &oission 4KNLR&, in NLR& &ase No. R#BAIAHH9CA85 4entitle' K3riiAtivo V. #lviar, co*lainant, verss Llora Motors, Inc., an'(or

1 Rollo, **. 55A58.

178

178




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&onstantino &arlota, res*on'ents.

%oetie in %e*te!er o0 19C8, *rivate res*on'ent 3riitivo V. #lviar !e6an is

e*lo/ent ;it *etitioner Llora Motors, Inc. #s a trc 'river, Mr. #lviar ren'ere'services to te co*an/ ei6t 48 ors a 'a/ 4e=l'in6 overtie seven 'a/s a;ee, an' 0or is la!or receive' a salar/ co*te' on a *er tri* !asis *lseer6enc/ cost o0 livin6 allo;ance 4E&OL#. #t te tie e sto**e' ;orin6 on 19#*ril 1985, Mr. #lviar ;as C5 /ears o0 a6e.

On 28 Octo!er 1985, *rivate res*on'ent #lviar :le' ;it NLR& Re6ional #r!itrationBranc No. 1 4%an ernan'o, La nion a co*laint2 4'ocete' as NLR& &ase No.R#BAIAHH9CA85 0or K%e*aration 3a/ an' NonA3a/ent o0 Dail/ ?a6es a6ainst*etitioners Llora Motors an' &onstantino &arlota, )r., te co*an/ ana6er. In a

3osition 3a*er e :le' in s**ort o0 is co*laint, Mr. #lviar claie' entitleentto, aon6 oter tin6s, E&OL# n'er*a/ents 0ro Nove!er 1982 * to #*ril1985 in te aont o0 3J,7H9.5J as ;ell as Kretireent !ene:ts, co*te' at oneAal0 onts *a/ 0or ever/ /ear o0 service.

$e co*laint ;as o**ose' !/ *etitioners ;o, in teir o;n 3osition 3a*er,J alle6e'tat all o0 te e*lo/ent !ene:ts claie' !/ *rivate res*on'ent #lviar a'alrea'/ !een 0ll/ *ai'. On te atter o0 retireent !ene:ts, it ;as conten'e' tatMr. #lviar a' not !een 'isisse' !/ Llora Motors, !t tat KQsoetie in te earl/*art o0 1985, Q#lviar so;e' tter lac o0 interest in is ;or Qan' ;ol' !e a!sent

0or no a**arent reason tat KQin te eantie, $rc No. 8H2, assi6ne' toco*lainant, lai' i'le an' !ecase o0 nonAse 0or soetie, it 'eteriorate' soseriosl/ tat in te last ;ee o0 #*ril o0 1985, Mr. #lviar re*orte' 0or ;or an';as ten in0ore' tat K;ile $rc 8H2 as not !een rea!ilitate' as /et, e col'act as relie0 'river tat Kco*lainant 'i' not lie to !e a relie0 'river in teeantie 0or since ten e 'i' not re*ort 0or ;or an' tat Kit ;as co*lainant;o a!an'one' is ;or since te last ;ee o0 #*ril 1985 an' never re*orte' sinceten. Neiter a'

2 I'., *. 15.

I'., **. 1AJH.


6/19

J I'., **. 1CA22.

179


179


Mr. #lviar !een retire', *etitioners claie', K0or te si*le reason tat res*on'entcor*oration 'oes not ave an/ retireent *lan = = = Qor an/ collective !ar6ainin6a6reeent ;it te e*lo/ees 0or no nion e=ists ;itin te co*an/ !ecase tee*lo/ees, 'rivers incl'e', receive' ore tan te stan'ar' !ene:ts 0or teirla!or. 3etitioners conten'e' 0rter tat Krecor's ;ill so; tat co*lainant a'receive' retireent !ene:ts 0ro te %ocial %ecrit/ %/ste ;en e retire'tere0ro in 198.

Mr. #lviar, in is *lea'in6s s!itte' !e0ore te La!or #r!iter, 'i' not controvert

*etitioners alle6ations o0 a!an'onent an' nonA'isissal. Mr. #lviar tere si*l/alle6e' tat in #*ril o0 1985, e Kretire' 0ro te service 'e to is ol' a6e o0 C5/ears.

On 27 )anar/ 1987, te res*on'ent La!or #r!iter ren'ere' a Decision,5 te'is*ositive *ortion o0 ;ic rea'

K?+EREORE, *reises all consi'ere', ;e ere!/ or'er te res*on'ents to *a/co*lainants 3riitivo #lviar, as 0ollo;s

1.

3J,7H9.5J


7/19

>

n*ai' E&OL# 'i

Retireent !ene:ts 40or 17 /ears

31J,C95.J

.


8/19

1,JC9.5

>

1HS attorne/s 0ees

31C,1CJ.87

>

$otal a;ar'

an' to *a/ co*lainant le6al interest on te total a;ar' to !e co*on'e'annall/ a0ter ten 41H 'a/s 0ro recei*t o0 tis 'ecision.

Res*on'ents are :nall/ or'ere' to *a/ co*lainant tro6 tis Re6ional#r!itration Branc OPce or *resent *roo0 o0 co*liance ;it tis or'er ;itin ten41H 'a/s 0ro recei*t ereo0.

%O ORDERED.


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#n a**eal ;as s!seentl/ inter*ose' ;it *!lic res*on'ent NLR&, *etitionerstere claiin6 tat te/ a' !een 'enie' 'e *rocess !/ te La!or #r!iter, ;o a'ren'ere' @'6ent in NLR& &ase No. R#BA1AHH9CA85 ;itot :rst con'ctin6 0oralearin6s terein. In a''ition, *etitioners, reitA

5 I'., **. J2AJC.

18H

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eratin6 tat *rivate res*on'ent #lviar a' neiter !een 'isisse' nor retire' !/ te

co*an/, estione' te *ro*riet/ o0 te 39,985.8H a;ar' o0 retireent !ene:ts.

On 2H )anar/ 1988, *!lic res*on'ent NLR& isse' te 'is*te' Resoltion,aPrin6 te 'ecision o0 te La!or #r!iter an' or'erin6 'isissal o0 te a**eal. #Motion 0or Reconsi'eration ;as 'enie' on 28 Marc 1988.C

$e 3etition at !ar raises t;o 42 *rinci*al isses 41 ;eter or not *etitioners a'!een 'enie' 'e *rocess o0 la; !/ te La!or #r!iter an' 42 ;eter or not *rivateres*on'ent #lviar is le6all/ entitle' to receive retireent !ene:ts 0ro *etitioners,

is 0orer e*lo/ers.

?it res*ect to te :rst isse, *etitioners alle6e tat 0ailre !/ te La!or #r!iter tocon'ct a 0oral earin6, *rior to ren'ition o0 @'6ent, reslte' in violation o0teir constittional ri6t to 'e *rocess. ?e 'o not a6ree. $is &ort as el' in te*ast tat a 0oral or trialAt/*e earin6 is not at all ties an' in all instancesessential to 'e *rocess,7 te reireents o0 ;ic are satis:e' ;ere *arties are


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a


11/19

#ll tol', te 'e *rocess ar6ent *t 0or;ar' !/ *etitioners st 0ail.

In res*ect o0 te secon' an' *rinci*al isse, it is r6e' !/ *etitioners tat te a;ar'

o0 retireent !ene:ts to *rivate res*on'ent #lviar is i*ro*er, tere !ein6 nocontractal or stattor/ !asis 0or sc a;ar'.

Or La!or &o'e as onl/ one article tat 'eals ;it te s!@ect o0 Kretireent 0rote service. #rticle 287 o0 te &o'e rea's as 0ollo;s

K#rticle 287. Retireent.>#n/ e*lo/ee a/ !e retire' *on reacin6 teretireent a6e esta!lise' in te &ollective Bar6ainin6 #6reeent or otera**lica!le e*lo/ent contract.

In case o0 retireent, te e*lo/ee sall !e entitle' to receive sc retireent!ene:ts as e a/ ave earne' n'er e=istin6 la;s an' an/ collective !ar6ainin6or oter a6reeent. 4Italics s**lie'

E=aination o0 #rticle 287 a!ove so;s tat entitleent to retireent !ene:ts a/accre eiter 4a n'er e=istin6 la;s or 4! n'er a collective !ar6ainin6 a6reeentor oter e*lo/ent contract. It is at once a**arent tat #rticle 287 'oes not itsel0

*r*ort to i*ose an/ o!li6ation *on e*lo/ers to set * a retireent scee 0orteir e*lo/ees over an' a!ove tat alrea'/ esta!lise' n'er e=istin6 la;s. Inoter ;or's, #rticle 287 reco6niFes tat e=istin6 la;s alrea'/ *rovi'e 0or a scee!/ ;ic retireent !ene:ts a/ !e earne' or accre in 0avor o0 e*lo/ees, as*art o0 a !roa'er social secrit/ s/ste tat *rovi'es not onl/ 0or retireent!ene:ts !t also 'eat an' 0neral !ene:ts, *eranent 'isa!ilit/ !ene:ts, sicness!ene:ts an' aternit/ leave !ene:ts.12 #s is coon*lace no;le'6e, te %ocial%ecrit/ #ct *rovi'es 0or retireent !ene:ts ;ic essentiall/ consist o0 te ri6t toreceive a ontl/ *ension 0or te rest o0 te covere' e*lo/ees li0e *rovi'e' tat

12 %ee %ocial %ecrit/ #ct, Re*!lic #ct No. 11C1 4e


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182

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41 sc e*lo/ee a' *ai' at least one n're' t;ent/ 412H ontl/

contri!tions *rior to retireent an' 42 as reace' te a6e o0 si=t/ 4CH /ears 4i0is salar/ is less tan 3HH.HH a ont or C5 /ears. $e retireent scee ereesta!lise' is co*lsor/ an' contri!tor/ in caracter on te *art o0 !ot tee*lo/er an' te e*lo/ee, !ace' * !/ criinal sanctions an' a'inistere' !/ alar6e an' ela!orate !reacrac/.

#rticle 287 o0 te La!or &o'e also reco6niFes tat e*lo/ers an' e*lo/ees a/,!/ a collective !ar6ainin6 or oter a6reeent, set * a retireent *lan in a''itionto tat esta!lise' !/ te %ocial %ecrit/ la;, !t *rescri!es at te sae tie tatsc consensal a''itional retireent *lan cannot !e sstitte' 0or or re'ce te

retireent !ene:ts availa!le n'er te co*lsor/ scee esta!lise' !/ te%ocial %ecrit/ la;. %c is te trst o0 te secon' *ara6ra* o0 #rticle 287 ;ic'irects tat te e*lo/ee sall !e entitle' to receive retireent !ene:ts earne'Kn'er e=istin6 la;s an' an/ collective !ar6ainin6 or oter a6reeent.

It is also i*ortant ere to e=aine %ections 1 an' 1J o0 Rle, I, Boo VI o0 teRles an' Re6lations I*leentin6 te La!or &o'e 4erea0ter, KI*leentin6 RleI. I*leentin6 Rle I 'eals ;it !ot terination o0 services an' retireent,!ein6 entitle' K$erination o0 E*lo/ent an' Retireent. Bt %ections 1 an' 1Jo0 I*leentin6 Rle I are te onl/ *rovisions ;ic 'eal ;it retireent atters.

n'er %ection 1 ;ic *rovi'es as 0ollo;s

K%ec. 1. Retireent.>In te a!sence o0 an/ collective !ar6ainin6 a6reeent oroter a**lica!le a6reeent concernin6 ters an' con'itions o0 e*lo/ent ;ic*rovi'es 0or retireent at an ol'er a6e, an e*lo/ee a/ !e retire' *on reacin6te a6e o0 si=t/ 4CH /ears. 4Italics s**lie'


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;ere an a''itional retireent *lan as !een esta!lise' !/ a collective !ar6ainin6a6reeent, or oter a**lica!le a6reeent 4or, n'er %ection 1J, an Kesta!lise'e*lo/er *olic/, !t sc *lan 0ails to s*eci0/ anoter, ol'er, a6e o0 retireent,an e*lo/ee a/ retire, an' a/ in trn !e retire' !/ is e*lo/er, *on reacin6

a6e si=t/ 4CH.

$at tere ;as soe con0sion in te in' o0 te La!or

18


18


#r!iter in te case at !ar !et;een Kterination *a/ an' Kretireent !ene:ts;ol' see entirel/ *ossi!le *rivate res*on'ent #lviar initiall/ ase' 0orKse*aration *a/ an' te La!or #r!iter a;ar'e' i Kretireent !ene:ts. $atcon0sion ;as *era*s 'e to te La!or #r!iters citin6 %ection 1J o0 I*leentin6Rle I, ;ic rea's as 0ollo;s

K%ec. 1J. Retireent !ene:ts.>4a #n e*lo/ee ;o is retire' *rsant to a !onaA:'e retireent *lan or in accor'ance ;it te a**lica!le in'ivi'al or collectivea6reeent or esta!lise' e*lo/er *olic/ sall !e entitle' to all te retireent!ene:ts *rovi'e' terein or to terination *a/ eivalent at least oneAal0 ontsalar/ 0or ever/ /ear o0 service, ;icever is i6er, a 0raction o0 at least si= 4Conts !ein6 consi'ere' as one ;ole /ear.

4! ?ere !ot te e*lo/er an' te e*lo/ee contri!te to te retireent *lan,a6reeent or *olic/, te e*lo/ers total contri!tion tereto sall not !e less tante total terination *a/ to ;ic te e*lo/ee ;ol' ave !een entitle' a' tere!een no sc retireent 0n'. In case te e*lo/ers contri!tion is less tan te


14/19

terination *a/ te e*lo/ee is entitle' to receive, te e*lo/er sall *a/ te'e:cienc/ *on te retireent o0 te e*lo/ee.

4c $is %ection sall a**l/ ;ere te e*lo/ee retires at te a6e o0 si=t/ 4CH /ears

or ol'er. 4Italics s**lie'

%ection 1J 4a re0ers to Kterination *a/ eivalent to at least oneAal0 41(2 ont0or ever/ /ear o0 service ;ile %ection 1J 4! entions Kterination *a/ to ;icte e*lo/ee ;ol' ave !een entitle' a' tere !een no sc retireent 0n' as;ell as Kterination *a/ te e*lo/ee is entitle' to receive. It sol' !e recalle'tat %ections 1 an' 1J are 0on' in I*leentin6 Rle I ;ic 'eals ;it !otKterination o0 e*lo/ent an' Kretireent. It is i*ortant to ee* te t;o 42conce*ts o0 Kterination *a/ an' Kretireent !ene:ts se*arate an' 'istinct 0roeac oter. $erination *a/ or se*aration *a/ is reire' to !e *ai' !/ an e*lo/er

in *articlar sitations i'enti:e' !/ te La!or &o'e itsel0 or !/ I*leentin6 RleI.1 $erination *a/ ;ere *ro*erl/ 'e an' *a/a!le

1 %ee #rticle 28 o0 te La!or &o'e 'ealin6 ;it

1. installation o0 la!or savin6 'evices

2. re'n'anc/

18J

18J




15/19

n'er soe a**lica!le *rovision o0 te La!or &o'e or n'er %ection J 4! o0I*leentin6 Rle I, st !e *ai' ;eter or not an a''itional retireent *lan as!een set * n'er an a6reeent ;it te e*lo/er or n'er an Kesta!lise'e*lo/er *olic/.

?at nee's to !e stresse', o;ever, is tat %ection 1J o0 I*leentin6 Rle I, lie#rticle 287 o0 te La!or &o'e, 'oes not *r*ort to reire Kterination *a/ to !e*ai' to an e*lo/ee ;o a/ ;ant to retire !t 0or ;o no a''itional retireent*lan a' !een set * !/ *rior a6reeent ;it te e*lo/er. $s, %ection 1J itsel0s*eas o0 an e*lo/ee K;o is retire' *rsant to a !onaA:'e retireent *lan or inaccor'ance ;it te a**lica!le in'ivi'al or collective a6reeent or esta!lise'e*lo/er *olic/. ?at %ection 1J o0 I*leentin6 Rle I a/ !e seen to !e sa/in6is tat ;ere terination *a/ is oter;ise *a/a!le to an e*lo/ee n'er ana**lica!le *rovision o0 te La!or &o'e, an' an a''itional or consensal retireent*lan e=ists, ten *a/ents n'er sc retireent *lan a/ !e cre'ite' a6ainst teterination *a/ tat is 'e, s!@ect, o;ever, to certain con'itions. $esecon'itions are 4a tat *a/ents n'er te a''itional retireent *lan cannot avete e

C. ;ere reinstateent o0 te e*lo/ee to is 0orer *osition is reire' !t isnot *ossi!le !ecase te co*an/ as close' or cease' o*erations or is 0orer*osition no lon6er e=ists at te tie o0 reinstateent 40or reasons not attri!ta!leto te 0alt o0 te e*lo/er.

185



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185


*lan.

$e res*on'ents, in 'e0en'in6 te a;ar' o0 retireent !ene:ts 6rante' !/ teLa!or #r!iter an' aPre' !/ te NLR&, invoe #llie' Investi6ation Brea, Inc. v.O*le. 1J E=aination, o;ever, o0 #llie' so;s tat res*on'ents reliance tereonis ite is*lace'. In #llie', Victoriano VelaseF a' !een an e*lo/ee o0 te#llie' Investi6ation Brea, Inc., a secrit/ 6ar' a6enc/, since 195. In 197C,avin6 reace' te a6e o0 si=t/ 4CH /ears, VelaseF s!itte' to #llie' ana**lication 0or retireent !ene:ts, ;ic a**lication ;as s!seentl/ a**rove' !/#llie', alto6 tere ;as ten no collective !ar6ainin6 a6reeent or e*lo/er*olic/ esta!lisin6 an a''itional retireent *lan 0or e*lo/ees o0 te a6enc/. #controvers/ arose in res*ect o0 te eto' a'o*te' !/ #llie' in co*tin6 teaont o0 retireent !ene:ts it a' n'ertaen to *a/ to VelaseF. Instea' o0!asin6 tat aont *on VelaseFs actal *erio' o0 e*lo/ent ;it te a6enc/4i.e., 0ro 195 to 197C, #llie' co*te' sc aont as startin6 0ro te 'ate o0e


17/19

1J 91 %&R# 2C5 41979.

18C

18C



*lo/ee ;o is retire' *rsant to a !onaA:'e retireent *lan or in accor'ance ;itte a**lica!le in'ivi'al or collective a6reeent or esta!lise' e*lo/er *olic/sall !e entitle' to all te retireent !ene:ts *rovi'e' terein or to terination *a/eivalent to at least oneAal0 ont salar/ 0or ever/ /ear o0 service, ;icever isi6er, a 0raction o0 at least si= 4C onts !ein6 consi'ere' as one ;ole /ear.rter it ;as state' T$is *osition taen !/ *!lic res*on'ents sares ;it te*rinci*le tat social le6islation sol' !e inter*rete' in 0avor o0 ;orers in te li6to0 te &onstittional an'ate tat te %tate sall a;ic is te 6enerall/ acce*te' o'e o0co*tation in retireent *lans>col' ar'l/ !e re6ar'e' as erel/ ar!itrar/ orca*ricios. $s, ;ile #llie' a' no collective !ar6ainin6 a6reeent or siilare*lo/ent contract esta!lisin6 a *lan n'er ;ic e*lo/ees col' retire, itsa**roval o0 VelaseFs a**lication, alto6 nilateral an' *ossi!l/ a' oc,s**lie' te necessar/ consensal !asis. In te instant case, Llora Motorsconsistentl/ resiste' te 'ean' 0or se*aration *a/ or retireent !ene:ts !/*rivate res*on'ent #lviar, *recisel/ *ointin6 to te 0act tat tere ;as no collective!ar6ainin6 a6reeent or oter contractal !asis or an/ Kesta!lise' e*lo/er

*olic/ tat conte*late' te 6rant o0 sc retireent !ene:ts.

&learl/, tere ;as in te instant case no consensal !asis 0or te reire' *a/ento0 a''itional retireent !ene:ts.1C $e La!or #r!iter an' te NLR& a' not'eclare' *rivate res*on'ent #lviar to ave !een ille6all/ 'isisse' !/ *etitioners.Neiter ;as tere an/ *retense on te *art o0 *rivate res*on'ent #lviar tat la!orAsavin6 'evices a' !een installe', or tat re'n'anc/ or retrencent or cessation


18/19

o0 o*erations a' occrre' in Llora Motors or tat e ;as aicte' !/ soe'isa!lin6 'isease, or tat, !ein6 entitle' to reinstateent, e col' not !ereinstate' to is ol' *osition. n'er tese circstances, te *ortion o0 te La!or#r!iters a;ar' ;ic reA

15 91 %&R# at 2C8A2C9.

1C $at is, in a''ition to te retireent !ene:ts *rovi'e' !/ te %ocial %ecrit/ #ct.

187


187


ire' *etitioners to *a/ an aont eivalent to a al0 onts *a/ 0or ever/ /earo0 service o0 Mr. #lviar cannot !e @sti:e' eiter as 4a''itional retireent !ene:tsor as terination *a/ an' ence constitte' an act ;itot or in e=cess o0

@ris'iction.

?+EREORE, te Decision o0 te La!or #r!iter 'ate' 27 )anar/ 1987 an' teResoltion o0 te National La!or Relations &oission 'ate' 2H )anar/ 1988 inNLR& &ase No. R#BAIAHH9CA85 are ere!/ %E$ #%IDE an' a ne; 'ecision sall !e

entere' REUIRING *etitioners to *a/ *rivate res*on'ent 3riitivo #lviar teaont o0 3J,7H9.5J 0or n*ai' E&OL# 'i


19/19

llora motors, inc. vs. drilon, 179 scra 175(1989)

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