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American President Lines vs Clave

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American President Lines vs Clave
AMERICAN PRESIDENT LINES,
Petitioner,
-versus- G.R. No. L-51641
June 29, 1982
CLAVE,.... MARITIME SECURITY UNION, etc
Respondents.
x---------------------------------------------------x

FACTS:
Petitioner (APL) entered into a contact with the Marine Security Agency for the latter to guard and protect the petitioner’s vessels while moored at the port of Manila. The contract was valid for one year from date of its execution (Jan 4, 1960). The guards were not known to APL and were paid by Petitioner handing a lump sum to the Agency whom the latter pays the guards.

Upon expiration of the term, APL executed a new contract with the Philippine Scout Veterans Security and Investigation Agency for one year.

Several individual complaints were filed against APL for unfair labor practice due to the termination of the contract. The counsel for the respondent alleged that the said termination was due to APL’s Captain Morris and the operator (Tinsay) of the Marine Security Agency.

Arbiter Lomabao found the petitioner guilty of ULP. Thus, sentencing the petitioner to reinstate the complainants and payment of three years backwages. NLRC likewise affirmed the Arbiter’s decision except to those of the retired age whom shall be given separation pay in addition to their backwages for three years.

Minister of Labor also affirms the NLRC’s decision. APL appealed to the Office of the President which was also affirmed.

ISSUE: Was there Employer-Employee Relationship between the petitioners and individual watchmen of the MSA who are alleged to be members of the Respondent Union.

HELD: NO. E-E exist when: (1) the selection and engagement of the employee; (2) the payment of wages; (3) the power of dismissal; and (4) the power to control the employee’s conduct — although the latter is the most important element.

It is the agency that recruits, hires, and assigns the work of its watchmen. Hence, a watchman can not perform any security service

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