G.R. No. 102567 -68 June 27, 1994
Victorias Milling Co., Inc., petitioner, vs. National Labor Relations Commission (Fourth Division, Cebu City), Remy Aguirre, Edgardo Bastan, Romero Batolina, Danilo Durias, Efren Gozon, Raul Guadalupe, Erwin Gulmatico, Generoso Jarobel, Jaime Limaco, Paulino Lucendo, Benjamin Magdato, Remegio Mesa, Teddy Monserate, Jose Panes, Danilo Peroja, Reynaldo Publico, Jerry Rama, Roger Rendon, Ronilo Saludo, Ranulfo Tabligan, Romelo Tingson, Juanito Abonales, Hernani Alisoso, Ramon Balladares, Emmanuel Deocampo, Nestor Dignos, Rhesa Dignos, Nelson Escutido, Edison Erasmo, Alejandro Fernandez, Bonifacio Husain, Jr., Nelson Ko, Rodante Ledesma, Danilo Langrio, Alfredo Lauron, Romeo Lauron, Reynaldo Lauron, John Peter Ninoy, Gervacio Palomillo, Ricardo Peller, Jose Razonable, Mario Tolentino, Edgardo Villegas, and Francis Vargas, respondents.

FACTS

On January 8, 1981, Diosdado Dacayo and 45 other complainants filed claims against Victorias Milling Corporation and/or Pablo Espera with the Bacolod District Office of the Ministry of Labor and Employment. The claims included conversion to regular employees, declaration of Pablo Espera as a “labor only contractor,” payment of wage differentials, 13th month pay differentials, social amelioration bonus, holiday pay, service incentive leave pay, money value of fringe benefits, attorney’s fees, moral and exemplary damages, and imposition of fines. On June 17, 1981, a recommendation was made for payment of holiday pay, service incentive leave pay, 13th month pay, and deficiency in emergency living allowance. On June 18, 1981, the Assistant Regional Director issued an order adopting this recommendation. Complainants filed a motion for reconsideration, which was treated as an appeal. On March 7, 1985, Deputy Minister Vicente Leogardo, Jr., set aside the order and remanded the case to the Arbitration Branch of the NLRC in Bacolod City for compulsory arbitration, docketed as RAB VI-0149-85.
Meanwhile, on July 1, 1985, the corporation terminated the services of Juanito Abonales and 25 other workers, some of whom were complainants in RAB VI-0149-85. This led to the filing of another complaint for illegal dismissal, docketed as RAB-VI-0262-85, praying for reinstatement with backwages and payment of fringe benefits and other money claims. The two cases were consolidated.
On November 17, 1989, the Labor Arbiter rendered a decision declaring the complainants as employees of Victorias Milling Company, ordering the payment of monetary awards to specific complainants, and ordering the reinstatement of certain complainants. Both parties appealed to the NLRC. Pending appeal, complainants filed a motion for reinstatement, which the Labor Arbiter granted. The corporation refused to reinstate them, prompting a motion for contempt. On January 21, 1991, the NLRC affirmed the Labor Arbiter’s decision with modifications, ordering additional payments and reinstatement with backwages.
Victorias Milling Co., Inc., filed a petition for certiorari. On April 19, 1994, petitioner and private respondents filed a joint motion to dismiss the petition based on a compromise settlement.

ISSUE

Whether the Compromise Agreement entered into by the parties should be approved by the Court.

RULING

The Supreme Court APPROVED the Compromise Agreement and ENJOINED the parties to faithfully comply with its covenants, terms, and conditions. The Court found the agreement not to be opposed to law, morals, good custom, public order, and public policy. In line with the State policy of encouraging amicable settlement of disputes and fostering shared responsibility between labor and management, the Court sustained the agreement. The resolution was immediately executory.