June 1, 1972 the United States Naval Authorities (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 Guerreros 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 BTEA-Kilusan
(January 1, 1973) Santiago Guerrero, after the commencement of its operation,
refused to employ the members of the respondent union.
(January 12, 1975) The latter filed a complaint with the National Labor Relations
Commission (NLRC Case No. 214) against Guerreros Transport Services, Inc. and
Santiago Guerrero to compel them to employ its members pursuant to Article 1,
Sec. 2 of the RP-US Base Agreement dated May 27, 1968.
March 13, 1973 This case was dismissed by the NLRC upon Guerreros motion to
dismiss on jurisdictional grounds, there being no employer-employee relationship
between the parties.
March 26, 1973 Respondent union appealed before the Secretary of the Department
of Labor, who, instead o f deciding the appeal, remanded the case for review to the
NLRC which, subsequently summoned both parties to a series of conferences.
October 11, 1973 NLRC issued a resolution ordering Guerreo

"to absorb all the complainants who filed their applications on or

before the deadline" set by Guerrero "on 15 November 1972 except
those who may have derogatory records with the U.S. Naval Authorities
in Subic, Zambales"
directing the Officer-in-charge of the provincial office of the
Department of Labor in Olongapo City to "oversee the preparation of
the list of those qualified for absorption in accordance with this
resolution.

Petitioner appealed to Secretary of Labor Blas F. Ople

December 27, 1973 Secretary Ople affirmed the said resolution.
January 22, 1974 Guerrero appealed the decision to the President of the
Philippines
July 9, 1974 The President, through Assistant Executive Secretary Ronaldo B.
Zamora, returned the case to the Secretary of Labor for appropriate action
on the appeal, it appearing, that the same does not involve national interest.

August 2, 1974 Provincial Director of the Labor Office in Zambales furnished

Guerrero a list of forty-six (46) members of respondent union BTEA-KILUSAN
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.
Guerrero received a letter dated September 24, 1974 from Col. Levi L.
Basilla, PC (GSC) Camp Olivas, San Fernando, Pampanga, requesting
compliance with the Order dated July 19, 1974 of the NLRC in NLRC Case No.
214.
October 4, 1974 Guerrero informed Col. Basilia that he had substantially
complied with the decision of the Secretary of Labor affirming the NLRC
Resolution of [October 31, 1974] in NLRC Case No. 214, and that any
apparent non-compliance therewith was attributable to the individual
complainants who failed to submit themselves for processing and
examination as requested by the authorities of the U.S. Naval Base in Subic,
Zambales, preparatory to their absorption by petitioner.
January 18, 1975 Acting Executive Secretary Roberto V. Reyes, pursuant to
Section 10 of Presidential Decree No. 21, directed the Chief of Constabulary
to arrest the executive officers of Guerreros Transport Services, Inc.
February 20, 1975 Guerreros Transport Services informed Secretary Reyes
that

it has substantially complied with the NLRC Resolution of October 31,

1975
o as out of those listed by the Regional Labor Director, only a few
passed the examination given and some of those who passed
failed to comply with the final requirements of the U.S. Naval
Base Authority;
o that only those who passed and complied with the requirements
of the U.S. Naval Base Authority were extended appointments as
early as December 16, 1974, but none of them, for evident lack
of interest, has reported for work.

March 26, 1975

In his first endorsement, Secretary Zamora required the Secretary of

Labor to verify Guerrero's Transport Services allegations.
Labor Arbiter Francisco M. de los Reyes, upon a motion for execution
filed by respondent union, issued an Order stating that "upon the

finality thereof and by way of implementing any writ of execution that

might be issued in this case, further hearings shall be held to
determine the members of respondent union who are entitled to
reinstatement in accordance with the basic guidelines finally
determined in this case."
June 20, 1975 Respondent 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".
July 16,1975 respondent BTEA-KILUSAN filed a Motion for Issuance of Writ of
Execution with respondent Labor Arbiter

but this was objected to by petitioner contending that the Labor

Arbiter has no jurisdiction over NLRC Case No. 214 and,
therefore, his proceedings and orders resulting therefrom are null
and void.

September 1, 1975 the Provincial Director of the Zambales Labor Office,

pursuant to the directive of the Secretary of Labor, and the NLRC Resolution
dated October 21, 1975 submitted a detailed information to the Assistant
Secretary of the Department of Labor on petitioner's compliance, "to enable
the Department of Labor to formally close" NLRC Case No. 214.
On September 25, 1975, respondent Labor Arbiter, acting on the motion for
execution filed by respondent union BTEA-KILUSAN, and finding that both the
Orders, dated March 26 and June 20, 1975, have not been appealed pursuant
to Article 223 of the Labor Code, 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, or a total
of P592,110.00 as back wages covering the period from August 22, 1974 to
September 20, 1975.22
On September 26, 1975, respondent Labor Arbiter issued a writ directing the
respondent Deputy Sheriff of Manila levy on the moneys and/or properties of
petitioner, 23 and on the same date respondent Sheriff immediately serve
said writ on petitioner who was given a period of five (5) days within which to
comply therewith.
October 6, 1975 Guerreros Transport Services instituted the present petition

for certiorari and prohibition with preliminary injunction

Supreme Court, on the same day, issued a temporary restraining

order and required the respondents to file an answer within ten
(10) days from notice.

October 11, 1975 Respondent Labor Arbiter De los Reyes and Sheriff Jose
Cruz filed their Comment by way of answer to the petition, explaining the
legal justifications of their action on the premises
October 11, 1975 Respondent union filed a motion to lift the temporary
restraining order of October 6, 1975
October 15, 1975 lifted

October 20, 1975 At the hearing, a Compromise Agreement was arrived at by

the parties wherein they agreed to submit to the Office of t he Secretary of
Labor the determination of members of the respondent union BTEA-KILUSAN
who shall be reinstated or absorbed by the herein petitioner in the
transportation service inside the naval base, which determination shall be
considered final.
This Court approved this agreement and enjoined "all the parties to strictly
observe the terms thereof.
This agreement is deemed to have superseded the Resolution of the National
Labor Relations Commission of October 31, 1973, as affirmed by the
Secretary of Labor on December 27, 1973.