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    BPI v. BPI Employees Union

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    marites ongtengco
    The Supreme Court ruled that the issuance of the "no negative data bank policy" by BPI was not valid. [1] The CBA between BPI and the Union contained no provision allowing such a policy, and BPI could not unilaterally impose new conditions not contemplated in the CBA. [2] The policy was unreasonable as it prevented employees from accessing loan benefits if they were previously listed in the negative data bank. [3] In cases of doubt, labor contracts must be construed in favor of the workers' welfare and decent living. Therefore, the Court affirmed the lower court's ruling in favor of the Union.

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    BPI v. BPI Employees Union

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    marites ongtengco
    719 views2 pages
    The Supreme Court ruled that the issuance of the "no negative data bank policy" by BPI was not valid. [1] The CBA between BPI and the Union contained no provision allowing such a policy, and BPI could not unilaterally impose new conditions not contemplated in the CBA. [2] The policy was unreasonable as it prevented employees from accessing loan benefits if they were previously listed in the negative data bank. [3] In cases of doubt, labor contracts must be construed in favor of the workers' welfare and decent living. Therefore, the Court affirmed the lower court's ruling in favor of the Union.

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    The Supreme Court ruled that the issuance of the "no negative data bank policy" by BPI was not valid. [1] The CBA between BPI and the Union contained no provision allowing such a policy, and BPI could not unilaterally impose new conditions not contemplated in the CBA. [2] The policy was unreasonable as it prevented employees from accessing loan benefits if they were previously listed in the negative data bank. [3] In cases of doubt, labor contracts must be construed in favor of the workers' welfare and decent living. Therefore, the Court affirmed the lower court's ruling in favor of the Union.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    719 views2 pages

    BPI v. BPI Employees Union

    Uploaded by

    marites ongtengco
    The Supreme Court ruled that the issuance of the "no negative data bank policy" by BPI was not valid. [1] The CBA between BPI and the Union contained no provision allowing such a policy, and BPI could not unilaterally impose new conditions not contemplated in the CBA. [2] The policy was unreasonable as it prevented employees from accessing loan benefits if they were previously listed in the negative data bank. [3] In cases of doubt, labor contracts must be construed in favor of the workers' welfare and decent living. Therefore, the Court affirmed the lower court's ruling in favor of the Union.

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    University of the Philippines College of Law

    AYA, E

    Topic CBA – Liberal Construction/In Case of Doubt


    Case No. G.R. No. 175678 / August 22, 2012
    Case Name Bank of the Philippine Islands v. BPI Employees Union
    Ponente PERALTA, J.

    RELEVANT FACTS

    BPIEU-MM (“Union”) and BPI have an existing Collective Bargaining Agreement (CBA), which provides for
    loan benefits and relatively low interest rates.

    BPI issued a "no negative data bank policy” for the implementation/availment of the manpower loans which the
    respondent objected to, thus, resulting into labor-management dialogues. Unsatisfied with the result of those
    dialogues, respondent brought the matter to the grievance machinery and afterwards, the issue, not having been
    resolved, the parties raised it to the Voluntary Arbitrator.

    Arbitrator: In favor of the Union.


    - The imposition of the NO NEGATIVE DATA BANK as a new condition for the implementation and
    availment of the manpower loan benefits by the employees evidently violates the CBA.

    CA: Affirmed.

    BPI’s arguments:
    1. The "No NDB policy" is a valid and reasonable requirement that is consistent with sound banking
    practice and is meant to inculcate among officers and employees of the petitioner the need for fiscal
    responsibility and discipline, especially in an industry where the element of trust is paramount.
    2. The "No NDB policy" does not violate the parties' Collective Bargaining Agreement.
    3. The "No NDB policy" conforms to existing BSP regulations and circulars, and to safe and sound banking
    practices.

    ISSUE AND RATIO DECIDENDI

    Issue Ratio
    W/N the issuance of the “no NO.
    negative data bank policy”
    was valid 1. A CBA refers to the negotiated contract between a legitimate labor
    organization and the employer concerning wages, hours of work and all other
    terms and conditions of employment in a bargaining unit, including mandatory
    provisions for grievances and arbitration machineries. As in all other contracts,
    there must be clear indications that the parties reached a meeting of the minds.
    Therefore, the terms and conditions of a CBA constitute the law between the
    parties.

    2. The CBA in this case contains no provision on the "no negative data
    bank policy" as a prerequisite in the entitlement of the benefits it set forth
    for the employees. Although BPI is authorized to issue rules and regulations
    pertinent to the availment and administration of the loans under the CBA, the
    additional rules and regulations, however, must not impose new conditions
    which are not contemplated in the CBA and should be within the realm of
    reasonableness.
    University of the Philippines College of Law
    AYA, E

    3. The "no negative data bank policy" is a new condition which is never
    contemplated in the CBA and at some points, unreasonable to the employees
    because it provides that before an employee or his/her spouse can avail of the
    loan benefits under the CBA, the said employee or his/her spouse must not be
    listed in the negative data bank, or if previously listed therein, must obtain a
    clearance at least one year or six months as the case may be, prior to a loan
    application.

    4. If BPI intended to include a "no negative data bank policy" in the CBA, it
    should have presented such proposal to the union during the negotiations. To
    include such policy after the effectivity of the CBA is deceptive and goes
    beyond the original agreement between the contracting parties.

    5. Article 1702 of the New Civil Code provides that, in case of doubt, all
    labor legislation and all labor contracts shall be construed in favor of the
    safety and decent living of the laborer. Thus, this Court has ruled that any
    doubt or ambiguity in the contract between management and the union
    members should be resolved in favor of the latter. Therefore, there is no
    doubt, in this case, that the welfare of the laborers stands supreme.

    RULING

    WHEREFORE, the Petition for Review under Rule 45 of the Revised Rules of Court, dated January 20, 2007, of
    petitioner Bank of the Philippine Islands, is hereby DENIED and the Court of Appeals' Decision and Resolution,
    dated June 8, 2006 and November 29, 2006, respectively, are hereby AFFIRMED.

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