FACTS: On December 1986, De La Salle University and De La Salle University Employee’s Association, which is composed of regular non-academic rank and file employees entered into a CBA. During the freedom period of such CBA, the Union initiated negotiations, which turned out to be unsuccessful. After several conciliation meetings, 5 out of 11 issues were resolved by the parties. A partial CBA was executed. The parties then entered into a Submission Agreement identifying the remaining issues for arbitration. The VA resolved the issues regarding: (1) scope of the bargaining unit; (2) union security clause; (3) security of tenure; (4) salary increases; (5) indefinite union leave, reduction of the union president’s workload, special leave, and (6)duration of the agreement. Subsequently, both parties filed their respective motions for reconsideration and then this petition for certiorari assailing the decision of the VA.
ISSUES:
1. W/N VA properly included the computer operators from the scope of the CBA and whether the employees of the College of St. Benilde were properly excluded.
2. Whether the VA correctly upheld the union shop clause.
3. Whether or not the VA correctly denied the union’s proposal for the use of the “last in-first out” method in the case of lay-off, termination due to retrenchment and transfer of employees.
4. Whether the VA correctly ruled that the university can no longer be required to grant a second round of wage increases.
5. W/N the VA correctly denied the union’s proposals on the deloading of the union president, improved leave benefits and indefinite union leave with pay.
HELD:
1. Yes. The express exclusion of the computer operators in the past does not bar any negotiations for future inclusion of the said employees in the bargaining unit. Also, as to the employees of the CSB, they were properly excluded at the two education institutions have their own separate juridical personality.
2. Yes. The right to refrain from joining labor organizations is limited. The legal protection granted to such right is withdrawn by operation of law where a labor union and an employer have agreed on a closed shop.
3. Yes. As an exercise of management prerogative, the University has the right to adopt valid and equitable grounds for terminating or transferring employees.
4. No. The financial capability of a company cannot be based on its proposed budget as such does not reflect the true financial condition of a company.
5. Yes. There was no justifiable reason for granting the same.
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