GR NO. 197309; ACE NAVIGATION CO. INC., v.

FERNANDEZ;
OCTOBER 10, 2012; J. BRION.
FACTS:
This is a case for claim of disability benefits, with prayer for mora
and exemplary damages, plus attorney’s fees. Respondent Fernandez is a
seaman.
Petitioner company moved to dismiss the case, contending that the
labor arbiter had no jurisdiction over the dispute. The case, instead, should
have been within the jurisdiction of a voluntary arbitrator or a panel of
arbitrators pursuant to Section 29 of the POEA Standard Employment
Contract (POEA-SEC) since the parties are covered by a CBA.
Fernandez opposed, alleging that the complaint involves a money
claim, hence, the LA has jurisdiction.
Compulsory Arbitration ruling: Denied the motion to dismiss. Ruled that
the LA had jurisdiction pursuant to Section 10, RA 8042, as amended.
NLRC: Agreed with the above ruling. Additionally, it ruled that the denial
of a motion to dismiss is an interlocutory order, hence, unappealable.
Case was remanded back to the LA. Petitioner’s MR was denied. Hence,
the filing of petition for certiorari with the CA.
CA: Denied the petition. Availed of the wrong remedy. The dismissal of
the motion was interlocutory, hence, unappeallable. Opined that the LA
has jurisdiction. It found that the CBA did not express in an unequivocal
language the submission of a case to voluntary arbitration. Hence, this
petition.
ISSUE:
Whether or not the LA has jurisdiction over this case.
RULING:
No. Voluntary arbitration should have governed this case. The SC’s
bases were Section 3, Article XIII of the 1987 Constitution (re: shared
responsibility), Articles 260, 261 and 262 of the Labor Code and Section 29
of the POEA-SEC.
The mentioned laws all boils down to the conclusion that the VA or
panel of VA has original and exclusive jurisdiction over the case.
Also, perusal of pertinent CBA provisions clearly shows
unequivocal or unmistakable language that the parties mandatorily
require themselves to submit to grievance procedure any dispute or cause
of action they may have against each other.
 It is settled that when the parties have validly agreed on a procedure
for resolving grievances and to submit a dispute to voluntary arbitration,
then that procedure should be strictly observed.