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Guerreros Transport Services v.

Blaylock
G.R. No. L41518

June 30, 1976

Ponente

petitioners GUERRERO'S TRANSPORT SERVICES, INC.


respondents BLAYLOCK TRANSPORTATION SERVICES EMPLOYEES ASSOCIATIONKILUSAN

(BTEAKILUSAN), LABOR ARBITER FRANCISCO M. DE LOS REYES and JOSE


CRUZ
summary The Union wanted to compel the winning bidder (Guerrero) to reinstate/reemploy the members of their group who were ex-employees of the losing
bidder Blaylock. They based it on the RP-US base agreement and on the
compromise agreement made. The court adhered to the Unions petition. A
treaty has two (2) aspects as an international agreement
between states, and as municipal law for the people of each state to
observe.
Being part of municipal law, the provision of the treaty forms part of the
contract between petitioner and the U.S. Naval Base authorities.
In view of said stipulation, the new contractor is, therefore, bound to give
"priority" to the employment of the qualified employees of the previous
contractor.

facts of the case

The United states Naval Base authorities at Subic, Zambales, conducted a public bidding for a
five year contract for the right to operate and/or manage the transportation services inside
the naval base.
This bidding was won by Santiago Guerrero, owner operator of Guerrero's Transport Services,
Inc., over Concepcion F. Blaylock, the then incumbent concessionaire doing business under
the name of "Blaylock Transport Services", whose 395 employees are members of respondent
union BTEAKILUSAN.
Guerrero refused to employ the members of the union.
On January, 12, 1975, filed a complaint with the NLRC against Guerrero's Transport Services,
Inc. and Santiago Guerrero, to compel them to employ its members pursuant to Article
1, Section 2 of the RPUS Base Agreement dated May 27, 1968.
Provincial Director of the Labor Office in Zambales furnished, on August 2, 1974, a list of 46
members of respondent union BTEAKILUSAN and former drivers of the Blaylock Transport
Service, who are within the coverage of the decision of the Secretary of Labor, and requesting
petitioner to report its action on the matter directly to the Chairman, NLRC, Manila
Santiago A. Guerrero received a letter from Col. Levi L. Basilla, PC (GSC) Camp Olivas, San
Fernando, Pampanga, requesting compliance with the Order
On June 20, 1975, Labor Arbiter De los Reyes ordered the reinstatement of 129 individuals "to
their former or substantially equivalent positions without loss of seniority and other rights and
privileges"
o Guerrero says that the Orders were issued by the Labor Arbiter were without
jurisdiction.
LA declared said Orders final and executory and directed petitioner Guerrero's Transport
Services, Inc. to reinstate the 129 complainants and to pay them the amount of
P4,290.00 each as backwages
October 6, 1975, issued a TRO and required the respondents to file an answer within
10 days from notice.
At the hearing of this case on October 20, 1975, a Compromise Agreement was arrived at
by the parties wherein they agreed to submit to the Office of the Secretary of Labor
the determination of members of the respondent union BTEAKILUSAN who shall be reinstated
or absorbed by the herein petitioner in the transportation service inside the naval base,
which determination shall be considered final.
1

The determination of WON 179 employees should be admitted was based on


certain criteria1.

issue

WON Guerrero can be compelled to abide by the treaty and the compromise agreement? YES

ratio
o

o
o
o

Pursuant to Section 6 of Article I of the PhilippineU S. Labor Agreement of May 27,


1968, the United States Armed Forces undertook, consistent with military requirements, "to
provide security for employment, and, in the event certain services are contracted
out, the United States Armed Forces shall require the contractor or concessioner to
give priority consideration to affected employees for employment.
A treaty has two (2) aspects as an international agreement between states, and
as municipal law for the people of each state to observe.
o Being part of municipal law, the provision of the treaty forms part of the contract
between petitioner and the U.S. Naval Base authorities.
o In view of said stipulation, the new contractor is, therefore, bound to give "priority"
to the employment of the qualified employees of the previous contractor. It is
obviously in recognition of such obligation that petitioner entered into the
aforementioned Compromise Agreement
Under the Compromise Agreement as embodied in the Resolution of this Court dated October
24, 1975, the parties agreed to submit to the Secretary of Labor the determination as
to who of the members of the respondent union BTEAKILUSAN shall be absorbed or employed
by the herein petitioner Guerrero's Transport Services, Inc., and that such determination shall
be considered as final.
The CompromiseAgreement of the parties is more than a mere contract and has the force and
effect of any other judgment, it is, therefore, conclusive upon the parties and their privies.
For it is settled that a compromise has, upon the parties, the effect and authority of res
judicata and is enforceable by execution upon approval by the court.
Since the resolution of the NLRC of October 31, 1973 required the absorption of the applicants
subject to the conditions therein contained, and there being no showing that such conditions
were complied with, the Labor Arbiter exceeded his authority in awarding back wages to the
129 complainants.

1) that they were bona fide employees of the Blaybock Transportation Service at the time its concession expired:
2) that the appellants shall pass final screening and approval by the appropriate authorities of the U.S. Base concerned..

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