Agreement is binding on the parties for the period

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Unformatted text preview: individual
 contracts
 of
 employment

 o BUT
 if
 the
 agreement
 merely
 fixes
 wages
 and
 working
 conditions,
the
employer
may
enter
into
particular
contracts
 • 3. 4. 1
 5. 6. with
 his
 employees
 even
 though
 both
 are
 bound
 by
 the
 general
contract
as
to
wages
and
working
conditions
 Enforceability
against
transferee
or
enterprise
 • Purchase
of
assets
 o Unless
 expressly
 assumed,
 labor
 contracts,
 such
 as
 CBA
 are
 not
 enforceable
 against
 a
 transferee
 of
 an
 enterprise,
 labor
 contracts
being
in
personam
 o As
 a
 general
 rule,
 there
 is
 no
 law
 requiring
 a
 bona
 fide
 purchaser
 of
 assets
 of
 an
 on‐going
 concern
 to
 absorb
 in
 its
 employ
the
employees
of
the
latter
 o Sundowner
Development
Corp
v.
Drilon
 Hotel
Mabuhay
was
to
be
ejected
for
non‐payment
 of
rentals.
Mabuhay
asked
Syjuco
to
find
a
buyer
of
 its
 assets.
 Sundowner
 Development
 bought
 the
 assets.
 The
 union
 of
 Mabuhay
 demanded
 that
 the
 employees
be
retained
by
the
employer
 Absorption
of
the
employees
of
Mabuhay
may
not
be
 imposed
on
petitioner.
In
the
deed
of
assignment,
it
is
 specifically
 stated
 therein
 that
 “in
 no
 way
 involves
 any
 assumption
 or
 undertaking
 of
 any
 debts
 or
 liabilities”.
The
liabilities
alluded
to
means
monetary
 liability
+
 any
other
obligation/liability
arising
from
 the
operation
of
its
business.
 • Exceptions
 o Parties
 are
 liable
 to
 the
 employees
 if
 the
 transaction
 between
the
parties
is
colored
or
clothed
with
bad
faith
 • Merger
and
consolidation
 o Under
 Corp
 Code,
 surviving
 or
 consolidated
 corporation
 shall
 be
 responsible
 and
 liable
 for
 all
 the
 liabilities
 and
 obligations
of
each
of
the
constituent
corporations
 • Wiley
doctrine
 o The
disappearance
by
merger
of
a
corporate
employer
which
 has
entered
into
a
CBA
with
a
union
does
not
automatically
 terminate
 all
 rights
 of
 the
 employees
 covered
 by
 the
 agreement,
 even
 though
 the
 merger
 is
 for
 genuine
 business
 reasons
 o A
 duty
 to
 arbitrate
 arising
 from
 a
 CBA
 survives
 the
 employer’s
ceasing
to
do
business
as
a
separate
entity
 after
 its
merger
with
a
substantially
large
corporation,
so
as
to
be
 binding
on
the
larger
corporation,
where
relevant
similarity
 and
continuity
of
operations
across
the
change
in
ownership
 is
 evidenced
 by
 the
 wholesale
 transfer
 of
 the
 smaller
 corporation’s
employees
to
the
larger
corporation.
 o Duty
 to
 arbitrate
 DOES
 NOT
 survive
 where
 there
 is
 lack
 of
 any
substantial
continuity
in
the
business
enterprise
 Change
of
bargaining
agent;
substitutionary
doctrine
 • How
does
disaffiliation
affect
the
CBA?
 • Agreement
 is
 binding
 on
 the
 parties
...
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This document was uploaded on 03/11/2014.

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