Continental Steel Manufacturing
Corporation vs. Hon. Accredited
Voluntary Arbitrator Allan S. Montaño: A
Case on Bereavement Leave and Death
Benefits for Unborn Child
Case: Continental Steel Manufacturing Corporation vs. Hon. Accredited Voluntary
Arbitrator Allan S. Montaño and Nagkakaisang Manggagawa ng Centro Steel
Corporation-Solidarity of Unions in the Philippines for Empowerment and Reforms
(NMCSC-SUPER), G.R. No. 182836, October 13, 2009
Facts:
Rolando P. Hortillano (Hortillano), an employee of Continental Steel
Manufacturing Corporation (Continental Steel), filed a claim for bereavement
leave and death benefits under the Collective Bargaining Agreement (CBA)
after the death of his unborn child during labor.
The CBA provided for bereavement leave and death benefits for employees in
case of the death of their "legitimate dependents."
Continental Steel denied Hortillano's claim, arguing that the unborn child did
not have civil personality and therefore could not be considered a
"dependent."
The Accredited Voluntary Arbitrator (AVA) ruled in favor of Hortillano, finding
that the unborn child was a dependent under the CBA and that the death of
the unborn child qualified for bereavement leave and death benefits.
The Court of Appeals affirmed the AVA's decision.
Issues:
Does the death of an unborn child qualify for bereavement leave and death
benefits under the CBA?
Does an unborn child have civil personality for purposes of receiving death
benefits?
What is the proper interpretation of "death" and "dependent" under the CBA?
Ruling:
Effect of Death to Civil Personality: The Supreme Court held that the issue
of civil personality is not relevant in this case. While Article 42 of the Civil Code
states that civil personality is extinguished by death, it does not mean that
only those who have acquired juridical personality could die.
Interpretation of "Death" and "Dependent": The Court found that the CBA
provisions on bereavement leave and death benefits should be interpreted
liberally in favor of labor. The Court emphasized that the purpose of these
benefits is to provide solace and support to employees who have suffered a
loss, regardless of whether the deceased had acquired civil personality. The
Court also found that an unborn child can be considered a dependent under
the CBA, as it relies on its parents for support.
Application of Article 40 of the Civil Code: The Court acknowledged that
Article 40 of the Civil Code grants a conceived child a provisional personality
for all purposes favorable to it. However, the Court emphasized that this
provision is not applicable in this case, as the issue is not the rights of the
unborn child but the rights of the parents.
Principles Discussed:
Liberal Interpretation of Labor Laws: The Court reiterated the principle
that labor laws and CBA provisions should be interpreted liberally in favor of
labor.
Purpose of Bereavement Leave and Death Benefits: The Court
emphasized that these benefits are intended to provide support and solace to
employees who have suffered a loss, regardless of the deceased's legal status.
Unborn Child as a Dependent: The Court found that an unborn child can be
considered a dependent under a CBA, as it relies on its parents for support.
Civil Personality and Death: The Court clarified that civil personality is not a
prerequisite for death. Even an unborn child, which does not have civil
personality, can die.
Conclusion:
The Supreme Court upheld the decision of the Court of Appeals and the AVA, finding
that Hortillano was entitled to bereavement leave and death benefits based on the
death of his unborn child. The Court emphasized the importance of interpreting labor
laws and CBA provisions liberally in favor of labor and the need to recognize the grief
and loss experienced by parents upon the death of their unborn child.
This case provides a significant interpretation of Article 42 of the Civil Code, clarifying
that death is not limited to individuals who have acquired civil personality. It also
highlights the importance of considering the broader purpose of labor laws and CBA
provisions when interpreting them, particularly when it comes to providing support
and solace to employees during difficult times.
