5.metropolitan Bank and Trust Company v. NLRC, G. R. No.

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MBTC v NLRC, GR No.

152928, June 18, 2009

Prepared by: BAUTISTA, ARNOLD C.

TOPIC : CONSTRUCTION IN FAVOR OF LABOR

FACTS
Felipe Patag and Bienvenido Flora were former employees of Metrobank who
availed of the bank’s compulsory retirement plan in February and April 1998,
respectively. Both of them received their respective retirement benefits as
provided under the 1995 Officers’ Benefits Memorandum.

Early in 1998, Collective Bargaining Agreement (CBA) negotiations were on-


going between Metrobank and its rank and file employees for the period 1998-
2000. Both of them wrote letters to the bank requesting that their retirement
benefits be computed at the new rate should there be an increase thereof in
anticipation of possible changes in officers’ benefits after the signing of the new
CBA with the rank and file.

Metrobank did not reply to their requests.

The records show that since the 1986-1988 CBA, and continuing with each
CBA concluded thereafter with its rank and file employees, Metrobank would
issue a Memorandum granting similar or better benefits to its managerial
employees or officers, retroactive to January 1st of the first year of
effectivity of the CBA.

The compulsory retirement benefit for officers was increased from 185% to
200% effective January 1, 1998, but with the condition that the benefits shall
only be extended to those who remain in service as of June 15, 1998.

Subsequent letters were sent to the Bank requesting for adjustments in their
retirement benefits. In its letter-reply dated September 17, 1998, Metrobank’s
First Vice-President Paul Lim, Jr. informed Patag and Flora of their ineligibility
to the improved officers’ benefits as they had already ceased their employment
and were no longer officers of the bank as of June 15, 1998.

On Sept. 25, 1998, a consolidated complaint was filed with the Labor Arbiter.
This was dismissed and appealed to the NLRC which ruled in their favor.

1
Metrobank elevated the matter to the CA through a Petition for Certiorari. The
CA dismissed the same and affirmed the NLRC Resolution. An MR was filed
but was likewise, denied.

Hence, a Petition for Review on Certiorari under Rule 45 was filed.

ISSUE
Whether or not petitioners Patag and Flora are entitled to additional retirement
benefits.

RULING
Yes. The Court dismissed MBTC’s averment that the CA’s ruling would result
in unfair discrimination of other retirees who did not file cases for retirement
adjustments. The right to file a labor complaint or assert a cause of action
against an employer is a personal right of each employee. It is most certainly
not dependent on whether or not other employees similarly situated would also
file a case against the employer. If there are other employees in the same boat
as respondents who decided, for whatever reason, not to demand payment of the
improved benefits,that would be their prerogative and their own look out. It
should not prejudice respondents or ban them from asserting their rights and
pursuing their legal remedies against petitioner.

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