FIRST GENERAL MARKETING CORPORATION AND/OR JOSE UY, PETITIONERS, VS. NATIONAL LABOR RELATIONS COM­MISSION (FIRST DIVISION), ADELAIDA SAN MIGUEL, MARY ESCALADA, ANECITA DIZON, LU…

This petition for certiorari seeks to review the decision
dated November 22, 1990 of the respondent, National Labor Relations Commission
(NLRC), in NLRC NCR Case No. 00-12-05131-88 which reversed the decision dated
August 7, 1989 of the Labor Arbiter.

Jose Uy owned and controlled three (3) garment companies, namely
Paramount Gloves Phils., Inc., State Garment Company, and First General
Marketing Corporation (FGMC). In March,
1988, the Paramount and FGMC were merged to enable Uy to meet the rising volume
of pur­chase orders and export demands.

By agreement dated March 16, 1988 between Jose Uy and ANGLO
(Alliance of Nationalist and Genuine Labor Organizations), the workers of
Paramount were absorbed by FGMC. The
private respondents, who were regular cutters at Paramount, were assigned as
“temporary trim­mers” in FGMC’s finishing section. Later, Uy asked them to sign probationary
contracts with FGMC either as sewers or cutters, to exclude them from the new
compa­ny’s bargaining unit.

On November 21, 1988, they were discharged without notice. On December 15, 1988, they filed a complaint
against FGMC and Uy for illegal dismissal (NLRC NCR Case No. 00-12-05131-88).

On August 7, 1989, Labor Arbiter Donato Quinto rendered a
decision dismissing the complaint on the ground that when the complainants were
required to work with respondent FGMC as temporary trimmers, they knew that
their hiring was seasonal in character, hence, it could not ripen into
permanent or regular employment.

On appeal to the NLRC, the Commission on November 22, 1990,
reversed the Labor Arbiter. It held
that the merger agreement compelled the respondents, FGMC and Uy, to respect
the permanent status of the complainants. They could not be dismissed without cause. The seasonal demand of respondents for workers was not a lawful
cause to dismiss the complainants who have always been consid­ered permanent,
rather than seasonal, workers at Para­mount. The respondents were directed to reinstate them to their former
positions with full backwages.

FGMC and/or Jose Uy filed the present petition for certiorari
with a prayer for the issuance of a prelimi­nary injunction, to restrain the
enforcement and/or implementation of the questioned NLRC decision and its
resolutions. The petition alleged that:

1. there was neither
testimo­nial nor documentary evidence prov­ing the private respondents’ allega­tion
of illegal dismissal; and

2. there was no violation
of their right to due process.

Furthermore, Uy had already sold all his share holdings in FGMC
two months before the contracts of the private respondents expired, hence, he
had no privity with FGMC at the time the private respondents were terminated.

The petition has no merit.

The agreement between Jose Uy and ANGLO dated March 16, 1988
clearly stated that:

“Seksyon 1. Na ang
kumpanya at ang Unyon ay nagkasundo na ang mga Manggagawa sa Tri-Star na ang
mga pangalan ay nakalakip sa kasunduang ito at lahat ng manggaga­wa ng
PARAMOUNT GLOVES PHILS., INC. ay sasaklawin at mapapasailalim bilang mga
regular na Manggagawa sa FIRST GENERAL MARKETING at kasapi ng Unyon sa ilalim
ng ANGLO. (Inter­pretation: That the company and the union agree that
the workers of Tri-Star whose names are attached to this agreement and all
workers of PARAMOUNT GLOVES PHILS., INC.
will be covered and will fall under
regular employees of FIRST GENERAL MARKETING and members of the union
under ANGLO.)

“Seksyon 2. Benepisyo
– Lahat ng mga benepisyo na matatanggap ng mga Manggagawa sa kanikaniyang
dating Pabrika ay ipagpapatuloy at ang mga benepisyo na nakuha sa CBA ng FIRST
GENERAL MARKETING ay ibibi­gay, at tatamasahin ng mga Manggagawa na
masasaklaw.” (All of the benefits to be
received by the workers from their respective
compa­nies shall continue and the bene­fits derived from
the CBA of FIRST GENERAL MARKETING shall be given and enjoyed by the covered
workers – translation ours.)

Jose Uy signed the agreement as President and General Manager of
both Paramount Gloves Phils. Inc. and FGMC. Therefore, he is estopped from disclaiming any liability under it. The probationary employment con­tracts which
the private respondents were made to sign on May 23, 1988, a week after
the execution of the merger agreement on March 16, 1988, violated the terms of
the merger agreement and the employees’ right to security of tenure.

WHEREFORE, finding no grave abuse of discretion in the
decision of the National Labor Relations Commission, the petition for certiorari
is DISMISSED. Costs against the
petitioners.

SO ORDERED.

Cruz, (Chairman), Bellosillo, and
Quiason, JJ., concur.