G.R. NO. 125792 -

Ruling

WHEREFORE, premises considered, xxx PAL is hereby ordered to pay the following complainants separation pay at the rate of one month salary for every year of service, thus: 1.) Manuel F. Parenas - P17,264.75 2.) Daniel Gaco -37,982.45 3.) Rodolfo Siaron -31,076.55 4.) Alfredo C. Montilla -31,076.55 5.) Romulo S. Castro - 27,623.60 6.) Elsa C. Castro - 31,076.55 7.) Marcelo Paragas - 44,888.35 8.) Romulo Parane - 13,411.80 9.) Rafael Sanchez - 31,076.55 10.) Inocencio Alcantara - 51,794.25 11.) Reynaldo Paraiso - 17,264.75 12.) Roberto Geronimo - 58,700.15 13.) Nomer E. Pescante - 24,170.65 14.) Benedicto Santos - 55,247.20 15.) Alberto Tomas - 20,717.70 16.) Bonifacio Bayeta, Jr. - 27,623.60 17.) Danilo Rodriguez - 27,623.60 18.) Carleto de la Cruz - 44,888.35 19.) Rafael Bequio - 20,717.70 20.) Eduardo Sitjar - 20,717.70 21.) Ruben M. Tanseco - 20,717.70 22.) Teodoro K. Discaya - 44,888.35 23.) Ernesto Evardone - 48,341.30 24.) Arnulfo Lavilla - 10,358.85 25.) Glecerio Elabarin - 27,623.60 26.) Marcelino Caneda - 27,623.60 27.) Epifanio Galibo - 20,717.70 28.) Benjamin Gandalera - 58,700.15 29.) Lino B. Dagohoy - 27,623.60 30.) Avelino Mullet - 27,623.60 31.) Jimmy M. Cordero - 20,717.70 32.) Ivanhoe Magno - 41,435.40 33.) Felix V. Catindoy - 24,170.65 34.) Ruben Daluz - 37,982.45 35.) Abenir R. Yarra - 41,435.40 36.) Santiago Cortes Jr. - 24,170.65 37.) Armando P. Lucido - 24,170.65 38.) Alberto Montilla - 34,529.50 39.) Renerio Capon - 17,264.75 40.) Leonardo Barroso - 6,905.90 41.) Ireneo Frondozo - 62,153.10 42.) Dionesio Banares - 24,170.65 43.) Marcelo Marzan - 20,717.70 44.) Alfredo Sta. Maria - 55,247.20 45.) Bernardo Mamaril - 13,811.80 46.) Carlos Delloro - 44,888.35 47.) Alcon de la Torre - 24,170.65 48.) Florentino Pestijo - 24,170.65 "The complaints of Edwin Pilapil, Pedro Bermas, and Orlando Orpiada against Stellar Industrial Services, Inc., are dismissed for lack of merit." On appeal, the National Labor Relations Commission (NLRC) [3] affirmed the labor arbiters Decision in this wise: [4] "WHEREFORE, except insofar as Stellar Industrial Services, Inc. is held jointly and severally liable with Philippine Airlines for the payment of complainants separation benefits, the Decision appealed from is hereby AFFIRMED." However, acting on the Motions for Reconsideration separately filed by petitioner and STELLAR, the NLRC modified its earlier Decision and ruled: [5] "WHEREFORE, our July 13, 1994 decision is hereby modified in that the separation pay adjudged in this case is hereby declared to be the sole liability of [Petitioner] Philippine Airlines, Inc." The Facts The undisputed facts of this case, as summarized by the solicitor general, are as follows: [6] "Sometime in 1977, PAL, a local air carrier, entered into a service agreement with STELLAR, a domestic corporation engaged, among others, in the business of job contracting janitorial services (PAL and STELLARs Agreement, Annex 1 of PALs Position Paper, Annex "F", id.). "Pursuant