Sime Darby Pilipinas, Inc. v. Deputy Administrator Buenaventura C.Magsalin, Et Al., 259 Phil. 658, 180 SCRA 177, G.R. No. 90426, December 15, 1989

 

Competence-Competence (Kompetenz-Kompetenz) Principle; Plenary Jurisdiction and Authority to Determine Scope of On Authority; !ule "#"($)% "nd par# and !ule "#&% Special AD! !ules; Article '(')% odel *a + Sime Darby Pilipinas, Inc. v. Deputy Administrator Buenaventura C.Magsalin, et  al.%% ", Phil# ,.% './ SC!A '00% 1#!# 2o# /&"%Decem3er ',% '. al. 4acts5 On 13 June 1989, petitioner Sime Darby and private respondent Sime Darby Employees  Association (SDEA) eecuted a !ollective "ar#ainin# A#reement (!"A) providin#, amon# ot$ers, t$at%  Article &, Section 1' A perormance bonus s$all be #ranted, t$e amount o  $ic$ *is+ to be determined by t$e !ompany dependin# on t$e return o *sic+ capital investment as relected in t$e annual inancial statement' On - July 1989, private respondent SDEA iled it$ t$e .ational !onciliation and /ediation "oard (.!/") an ur#ent re0uest or preventive conciliation beteen private respondent and petitioner, or  t$e reason t$at petitioner ailed to #rant t$e perormance bonus correspondin# to t$e iscal year  19881989, on t$e #round t$at t$e or2ers perormance durin# said period did not 4ustiy t$e aard o suc$ bonus' On 1 Au#ust 1989, t$e parties ere called to a conciliation meetin# and in suc$ meetin#, bot$ parties a#reed to submit t$eir dispute to voluntary vol untary arbitration' On 1- Au#ust 1989, t$e 5oluntary Arbitrator issued an aard $ic$ declared respondent union entitled to a perormance bonus e0uivalent to -67 o t$e mont$ly basic pay o its members'

6ssues5 (1') $et$er $et$er or not t$e 5o 5oluntar luntary y Arbitrat Arbitrator or acted it$ #rave abuse o discretion discretion or it$out it$out or in ecess o 4urisdiction in passin# upon bot$ t$e 0uestion o $et$er or not a perormance bonus is to be #ranted by petitioner Sime Darby to t$e private respondents and t$e urt$er  0uestion o t$e amount t$ereo' (') $et$er $et$er or not t$e aard by t$e Arbitrato Arbitratorr o a perormance perormance bonu bonus s amountin# to seven seventy ty ive percent (-67) o t$e basic mont$ly salary o members o private respondent union itsel  constituted a #rave abuse o discretion or an act it$out or in ecess o 4urisdiction'

7eld5 6' t is t$us essential to stress t$at t$e 5oluntary Arbitrator $ad plenary 4urisdiction and aut$ority to interpret t$e a#reement to arbitrate and to determine t$e scope o $is on aut$ority sub4ect only, in a pr prop oper er case, case, to t$ t$e e certiorari  4urisdiction   4urisdiction o t$is !ourt' $e Arbitrator, as already indicated, vieed $is aut$ority as embracin# not merely t$e determination o t$e abstract 0uestion o $et$er  or not a perormance bonus as to be #ranted but also, in t$e airmative case, t$e amount t$ereo' :it$ou :it $outt doubt, doubt, t$e Sime Sime Darby Darby Employ Employees ees Assoc Associat iation ion is entitl entitled ed to peror perorman mance ce bonus' bonus' $is $is

 

conclusion arises rom an analysis o t$e imperative terms o t$e !"A provision on production bonus'

66# $e aard by t$e Arbitrator o a perormance bonus amountin# to seventy ive percent (-67) o t$e basic mont$ly salary o members o private respondent union itsel does not constitute a #rave abuse o discretion or an act it$out or in ecess o 4urisdiction' $e aard o a 5oluntary Arbitrator  is inal and eecutory ater ten (1;) calendar days rom receipt o t$e aard by t$e parties'  $e ed or t$e iscal year 19881989' t s$ould also be noted t$at t$e relevant !"A provision does not speciy a minimum rate o return on investment (=O) $ic$ must be reali>ed beore beor e any particular particular amount amount o bonus may or s$ould be declared declared by t$e company' company' $e 5o 5olunta luntary ry  Arbitrator also too2 into account, a#ain in an indirect manner, t$e perormance o Sime Darbys employees by reerrin# in $is aard to Bt$e total labor cost incurred by t$e !ompanyB'