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Question 4

IV.

(Question IV, Labor Law, 2018 Bar Exam)

Natasha Shoe Company adopted an organizational streamlining program that resulted in the retrenchment of 550 employees in its main plant. After having been paid their separation benefits, the retrenched workers demanded payment of retirement benefits under a CBA between their union and management. Natasha Shoe Company denied the workers’ demand.

(a) What is the most procedurally peaceful means to resolve this dispute? (2.5%)

(b) Can the workers claim both separation pay and retirement benefits? (2.5%)

Suggested Answer:

(a)

Endorsing the dispute to the grievance machinery is the most procedurally peaceful means to resolve the issue considering Natasha Shoe Company is an organized establishment. If the issue remains unresolved, the dispute may be submitted for voluntary arbitration.

(b) Yes. Answer

Under labor law jurisprudence, employees are entitled to both separation pay and retirement pay unless there is an express stipulation against recovering both, such as in an employment contract, company policy, collective bargaining agreement, or any other employment agreement. Rule

In the case at bar, there is no express stipulation that the workers are prohibited from recovering both separation pay and retirement pay. Apply

Thus, the workers may claim both separation pay and retirement benefits. Conclusion

..

(Notice: The suggested answers simulate those that a bar examinee may provide, and thus specific citations are not provided. Notwithstanding, in the reviewers, the bar exam question is answered under the appropriate topic which discusses the concepts and principles, as well as provide for specific citations. Accordingly, please refer to it on the reviewer or in the Library.)

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