General-Mills-v.-Torres

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GENERAL MILLING CORPORATION and EARL TIMOTHY CONE, petitioners,

vs.
HON. RUBEN D. TORRES, in his capacity as Secretary of Labor and Employment, HON.
BIENVENIDO E. LAGUESMA, in his capacity as Acting Secretary of Labor and Employment,
and BASKETBALL COACHES ASSOCIATION OF THE PHILIPPINES, respondents.

Facts:
- DOLE NCR issued Alien Employment Permit for Earl Timothy Cone, a US Citizen as a sports
consultant and assistant coach for General Milling Corporation (GMC).
- GMC and Cone then entered into a contract of employment as coach of GMC’s basketball team.
Then board of Special Inquiry of the Commission on Immigration and Deportation approved
Cone’s application for a change of admission status from temporary to visitor to pre-arranged
employee.
- GMC requested for renewal of Cone’s Alien employment permit and requested to be allowed to
employee Cone as a full-fledged coach.
- DOLE granted the request.
- Basketball Coaches Association of the Philippines (BCAP) appealed the issuance of the alien
employment permit to the Secretary of Labor who cancelled the said permit because there was no
showing that no other person can perform what he is doing and employing him would redound to
public interest.

Issue:
- W/N Sec of Labor gravely abused his discretion when he revoked petitioner Cone’s alien
employment permit and Section 6 (c), Rule XIV, Book I of the Omnibus Rules Implementing the
Labor Code is null and void as it is in violation of the enabling law as the Labor Code does not
empower respondent Secretary to determine if the employment of an alien would redound to
national interest.

Ruling:
- No abuse of discretion.
- The Supreme Court found that GMC’s claim that hiring of foreign coach is management
prerogative false.
- Art. 40 of the Labor code states that an employer seeking employment of an alien must first
obtain an employment permit from the Department of Labor subject to the statutory requirement
of alien employment permit.
- The labor code requires alien employment permits to enter into a contract for employment, hence,
GMC cannot claim that the Secretary’s decision is tantamount to impairment of obligations of
contracts.
- The labor code empowers the secretary to determine as to the availability of the services of a
person in the Philippines and it likewise empowers the Labor Secretary to determine as to the
availability of the services of a “person in the Philippines who is competent, able and willing at
the time of the application to perform the services for which an alien is desired.”, thus, making
the GMC's contention that Secretary of labor should have deferred to the findings of Commission
on Immigration and Deportation as to the necessity of employing Cone without basis.

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