1st Set Case #157Liberty Flour Mills Employees vs Liberty FlourG.R - 58768 December 29, 1989Facts:On February 6, 1974, respondent Philippine Labor Alliance Council (PLAC) and Liberty Flour entered into a 3-year CBA effective January 1, 1974 providing for a daily wage increase of PhP2.00 for 1974, PhP1.00 for 1975 and PhP1.00 for 1976. The parties also agreed to establish a union shop by imposing membership in good standing for the duration of CBA as a condition for continued employment of workers. PLAC complained against the company for non-payment of E-COLA under P.D. 525. A similar complaint was filed on March 4, 1975, this time by petitioners who apparently were veering away from PLAC. Evaristo and Biascan, after organizing a union, filed for a certification election among rank-and-file employees. PLAC then expelled the two for disloyalty and demanded their dismissal by the respondent company, who complied on May 20, 1975. The claims for E-COLA was dismissed as it was already absorbed by the wage increase. The termination case in relation to back wages was also dismissed.

Issue:Whether or not E_COLA was also absorbed in the wage increases and won dismissal of Evaristo and Biascan was illegal.

Held:The company agreed to grant the emergency allowance even before the obligation was imposed by government (P.D. 525). What the petitioners claim they are being made to waive is the additional allowance but the truth is they are not entitled to because they are already enjoying the stipulated increases.As with the case of illegal dismissal, the CBA concluded in 1974 was certifiable and in fact certified in April 11, 1975 while the two were dismissed on may 20, 1975. Evidence show that after the cancellation of the registration certificate of the Federation of Democratic Labor Unions, no other union contested the exclusive representation of the PLAC, consequently there was no more legal impediment that stood on the way of its validity and enforceability of the provisions of the collective bargaining agreement entered into by and between respondent corporation and respondent union. Once it was duly entered into and signed by the parties, a collective bargaining agreement becomes effective as between the parties regardless of won the same has been certified by the BLR.