Caurdanetaan Piece Workers Union vs. Laguesma and Corfarm Grains, Inc. G.R. No.

113542 (24 February 1998) FACTS: Caurdanetaan Piece Workers Union has 92 members who worked as cargador at the warehouse and rice mills of Confarm at Umingan, Pangasinan since 1982. - They loaded and unloaded and piled sacks of palay from the warehouse to the cargo trucks and those brought by cargo trucks for delivery to different places. - They were paid by Confarm on a piece-rate basis. When Confarm had denied some benefits to these cargadores, they had organised a union. Upon its formation, Confarm had barred its members from working with them and replaced them with non-members of the union sometime in the middle of 1992. On 9 July 1992, the Union had filed a petition for certification election before the Regional Office No. I of the Department of Labor and Employment, San Fernando, La Union. On 16 November 1992, Caurdanetaan Piece Workers Union had filed a complaint for illegal dismissal, unfair labour practice, refund of illegal deductions, payment of wage differentials, various pecuniary benefits provided by laws, damages, legal interest, reinstatement and attorneys fees against Corfarm. On 24 November 1992, Labour Arbiter Ricardo Olairez had directed the 2 parties to submit their position paper on or before 14 December 1992, and to appear for hearing on the said date. - Only the Caurdanetaan Piece Workers Union had showed up and submitted its position paper on 3 December 1992. On 18 March 1993, Med-Arbiter Sinamar E. Limos issued an Order granting the petition for the certification election earlier filed by the Union. - However, Undersecretary Bienvendo Laguesma had dismissed the petition for certification election of the Union for lack of employer-employee relationship. - The Union had filed a motion for reconsideration, but was denied by Laguesma.

ISSUE: Whether an employer-employee relationship exists between Caurddanetaan Piece Workers Union and Cofarm Grains, Inc. HELD: To determine the existence of an employer-employee relationship, this Court has consistently applied the four-fold test which has the following elements: (1) the power to hire, (2) the payment of wages, (3) the power to dismiss, and (4) the power to control -- the last being the most important element The Court considers the cargadores as regular employees. Basing from the facts, the Court has deemed that the Union members had worked as cargadores for Corfarm. They loaded, unloaded and piled sacks of palay from the warehouses to the cargo trucks and from the cargo trucks to the buyers. - This work is directly related, necessary and vital to the operations of Corfarm. - Moreover, Corfarm did not even allege, much less prove, that the Union members have substantial capital or investment in the form of tools, equipment, machineries, [and] work premises, among others. - Lastly, Corfarm had wielded the power of dismissal over the Union members (an important element of the four-fold test). Hence, the workers are not independent contractors and an employer-employee relationship exists between the Union and Corfarm.