Grant of Bonus per CBA

2nd DIVISION G.R. No. 180866 March 2, 2010 LEPANTO CERAMICS, INC., vs. LEPANTO CERAMICS EMPLOYEES ASSOCIATION PEREZ, J.: Petition for Review on Certiorari Rule 45

COMPANY GAVE SMALLER AMOUNT OF BONUS AND NOT IN CASH DESPITE WHAT THE CBA STATES: Findings of labor officials, who are deemed to have acquired expertise in matters within their respective jurisdictions, generally bind the Court when supported by substantial evidence, more so when findings of both the arbitrator and the Court of Appeals coincide.

An arbitrator is confined to the interpretation and application of the CBA.: his award is legitimate if it draws its essence from the CBA.

A "bonus" is a gratuity or act of liberality of the giver, given in addition to what is ordinarily received by or strictly due the recipient. It is paid to an employee for his contribution to the success of the employer’s business and the realization of profits. It is also granted to spur the employee to greater efforts for the success of the business and realization of bigger profits.

It is generally not a demandable and enforceable obligation. To be enforceable, it must have been promised by the employer and expressly agreed upon by the parties, such as this case where Christmas bonus is integrated in the CBA.

The CBA is the law between the parties and have the obligation to comply with its provisions . The CBA provides for the giving of a "Christmas gift package/bonus" without qualification. It did not state that it is dependent on the employer’s financial standing.

Business losses are a feeble ground to repudiate its obligation under the CBA. The principle of non-diminution of benefits is based on the constitutional mandate to protect the rights of workers , promote their welfare and afford labor full protection. It is presumed that Lepanto entered into the CBA voluntarily with full knowledge of its contents and commitments under the contract.

The implementation of the subject CBA provision may further deplete petitioner’s resources, but the remedy is the Court’s invalidation of the provision but in the clarification in subsequent CBA negotiations.