G.R. No. 174641 November 11, 2008
NATIONAL MINES and ALLIED WORKERS UNION (NAMAWU), petitioner, vs. MARCOPPER MINING CORPORATION, respondent.

FACTS

On April 1, 1996, the DENR ordered the indefinite suspension of MARCOPPER’s operations for causing environmental damage. NAMAWU, the exclusive bargaining representative of MARCOPPER’s rank-and-file workers, filed a complaint on April 10, 1996, for nonpayment of wages for six months (April 12 to October 12, 1996) and separation pay due to the suspension. Labor Arbiter Pedro C. Ramos ruled in favor of NAMAWU on March 14, 2000, ordering MARCOPPER and its officers to pay wages, separation pay, and attorney’s fees. MARCOPPER appealed to the NLRC. It posted an appeal bond for three non-striking employees but filed a motion to dispense with posting a bond for 615 NAMAWU members, arguing their employment had been terminated effective March 7, 1995, due to an earlier illegal strike (a fact confirmed by a final CA decision in CA-G.R. SP No. 51059). The NLRC dismissed MARCOPPER’s appeal on February 28, 2002, for failure to post the required appeal bond for all awarded claimants. The CA granted MARCOPPER’s petition for certiorari, nullifying the NLRC’s dismissal and ordering it to give due course to the appeal. The CA found the non-filing of the bond for the 615 members justified as they were no longer employees at the time of the operational suspension. NAMAWU filed the present petition.

ISSUE

Whether the Court of Appeals erred in ruling that there was no need for MARCOPPER to post an appeal bond for the 615 NAMAWU members and in ordering the NLRC to give due course to MARCOPPER’s appeal.

RULING

The Supreme Court DENIED the petition and AFFIRMED the Court of Appeals decision. The posting of an appeal bond is mandatory for the perfection of an appeal from a Labor Arbiter’s decision involving a monetary award. However, the Court recognized that the requirement presupposes that the award is in favor of parties who are employees entitled to the benefits awarded. In this case, the 615 NAMAWU members were dismissed for cause on March 7, 1995, due to an illegal strike, and this dismissal was affirmed by a final and executory judgment (CA-G.R. SP No. 51059, affirmed by the Supreme Court). Consequently, they were no longer employees of MARCOPPER when the environmental incident occurred and operations were suspended on April 1, 1996. Therefore, the Labor Arbiter’s award of wages and separation pay to these individuals had no legal basis. Requiring MARCOPPER to post a bond to guarantee an award for persons not entitled to it would be unjust and contrary to equity. The CA correctly considered the final judgment in the illegal strike case to resolve the appeal bond issue, as it established that the 615 members had no employer-employee relationship with MARCOPPER during the relevant period. The NLRC was ordered to give due course to MARCOPPER’s appeal to determine the merits, particularly concerning the three employees for whom a bond was posted and any others similarly situated but not part of the illegal strike case.