ART. 218 Citibank Vs CA
ART. 218 Citibank Vs CA
ART. 218 Citibank Vs CA
CA
GR No: 108961 Date: Nov 27, 1998
Ponente: Pardo, J.
Doctrine: Labor Dispute - It "includes any controversy or matter concerning terms or conditions
of employment or the association or representation of persons in negotiating, fixing, maintaining,
changing or arranging the terms and conditions of employment, regardless of whether the
disputants stand in the proximate relation of employer and employee."
FACTS: Citibank and El Toro Security Agency, Inc. (hereafter El Toro) entered into a contract
for the latter to provide security and protective services to safeguard and protect the bank's
premises.
Under the contract, El Toro obligated itself to provide the services of security guards to
safeguard and protect the premises and property of Citibank against theft, robbery or any other
unlawful acts committed by any person or persons, and assumed responsibility for losses and/or
damages that may be incurred by Citibank due to or as a result of the negligence of El Toro
or any of its assigned personnel. Citibank renewed the security contract with El Toro yearly until
it expired. Then, Citibank Integrated Guards Labor Alliance-SEGA-TUPAS/FSM (hereafter
CIGLA) filed with the National Conciliation and Mediation Board(NCMB) a request for
preventive mediation based on Unfair labor practice; Dismissal of union officers/members; and
Union busting.
CIGLA converted its request for preventive mediation into a notice of strike for failure of the
parties to reach a mutually acceptable settlement of the issues, which it followed with a
supplemental notice of strike alleging as supplemental issue the mass dismissal of all union
officers and members. Citibank
filed with the Regional Trial Court, Makati, a complaint for injunction and damages. CIGLA
filed with the trial court a motion to dismiss the complaint. The motion alleged that:
c) There were pending cases/labor disputes between the guards and the bank at the different
agencies of the Department of Labor and Employment (DOLE).
d) The bank was guilty of forum shopping in filing the complaint with the Regional Trial Court
after submitting itself voluntarily to the jurisdiction of the different agencies of the DOLE.
LA/RTC/NLRC RULING: Trial court denied respondent CIGLA's motion to dismiss
Respondent's Contention:
There is EE-ER relationship between Citibank and the security guards
ISSUE/S: WON the case involves a labor dispute? (Is there a labor dispute between Citibank
and the security guards, members of respondent CIGLA, regardless of whether they stand in the
relation of employer and employees?)
HELD: No. Article 212, paragraph l of the Labor Code provides the definition of a "labor
dispute". It "includes any controversy or matter concerning terms or conditions of employment
or the association or representation of persons in negotiating, fixing, maintaining, changing or
arranging the terms and conditions of employment, regardless of whether the disputants stand in
the proximate relation of employer and employee."
El Toro was an independent contractor. Thus, no EE-ER existed between Citibank and the security guard
members of the union in the security agency who were assigned to secure the bank's premises and property.
Hence, there was no labor dispute and no right to strike against the bank. The dispute involved is
a civil one and the jurisdiction over the subject matter of the complaint lies with the regional trial
court.