SC upholds NLRC's power to enforce CBAs in unfair labor cases

The Supreme Court upheld the National Labor Relations Commission's authority to enforce Collective Bargaining Agreements in cases involving unfair labor practices.

In a decision released on March 5, 2025, the SC Third Division supported an NLRC order directing Guagua National Colleges (GNC) to pay its employees agreed economic benefits such as rice subsidy and longevity pay but modified the computation of those benefits.

The case stemmed from negotiations in 2009 between GNC and its unions over renewed CBA terms including benefits like a rice subsidy, loyalty pay, and clothing allowance.

GNC's delay in signing the draft agreement led to union frustration and accusations of bad faith bargaining, prompting a notice of strike and intervention by the Department of Labor and Employment.

The SC clarified that while voluntary arbitrators typically handle CBA implementation, the NLRC has the authority to enforce CBA provisions when gross violations occur, such as unfair labor practices.

However, the court ruled that GNC should exclude signing bonuses from payments and cover only the five-year period (2009-2014) of the original agreement.