DYNO NOBEL PHILIPPINES, INC. VS DWPI SUPERVISORY UNION

DYNO NOBEL PHILIPPINES, INC.

VS

DWPI SUPERVISORY UNION
535 SCRA 466 (2007)

When a Collective Bargaining Agreement provides for a mandated increase in salary, which was voluntarily agreed upon by the parties, the same shall be complied with.

Edgar Ausejo (Ausejo) was hired by Dyno Noble Philippines, Inc. (DYNO-NOBEL) as a Store Clerk. Having joined the DWPI Union (DWPIU) of the rank and file, his salary was increased by P500 per month effective January 1, 1996. Ausejo was then promoted to the position of General Stores Supervisor. As per company and union regulations Ausejo ceased to be a member of the rank and file union and joined the DWPI Supervisory Union (DWPSU). At the same time, DYNO-NOBEL started its Salary Scaling Program which was intended to structure and align the salary scales of its employees. Ausejo was evaluated to have no increase as per union regulations.

Ausejo and his former union filed a request for increase in salary to DYNO-NOBEL. Ausejo and DWPIU invoked the provisions of the Collective Bargaining Agreement (CBA), contending that he is entitled to a mandated increase of P1,150. In its reply, DYNO-NOBEL denied the motion contending that Ausejo is not anymore a member of the rank and file union. DYNO-NOBEL also contended that the increase in salary of Ausejo was reflected in his higher salary as a General Stores Supervisor.

ISSUES:
Whether or not the mandated increase of P1,150 under the CBA forged by DWPIU was already integrated into the salary of Ausejo when he assumed the position of General Stores Supervisor

HELD:
An examination of Ausejo’s Position Paper shows that he, just like the two other supervisors, received the same monthly salary for the year 1997 and 1998. Logically, in accordance with the 1996 CBA, for the year 1997, an increase of P1,050 was added to the salary of each of the three, to thereby amount to a total salary.

Clearly, the Salary Scaling Program implemented by DYNO-NOBEL was primarily intended “to restructure and align the salary scales of the employees on the basis of fairness and reasonable classification of jobs.

It is hard to believe that, considering the closeness in the time between the implementation of the Salary Scaling Program and the execution of the CBA — a difference of eighteen days — the negotiating panel of the Union would not have known the rather substantial benefits and advantages accruing to the Supervisors under the Salary Scaling Program. The purpose of the Salary Scaling Program was intended to structure the salary scales of the employees on the basis of fairness and reasonable classification of jobs. There is every reason to uphold the Program, and, to uphold the claim of Ausejo that he is entitled to the [P]1,150.00 mandated increase for 1996 upon his appointment.