Key Takeaway: The Importance of Finality in Labor Decisions and the Rights of Seafarers to Disability Benefits

OSM Maritime Services, Inc. and/or Mailyn Perena Borillo v. Nelson A. Go, G.R. No. 238128, February 17, 2021

Imagine a seafarer, far from home, battling a debilitating illness that threatens their livelihood. For Nelson A. Go, this was not just a scenario but a reality that led him to seek justice and compensation from his employer. This case delves into the crucial issue of whether a seafarer’s illness is work-related and the subsequent entitlement to disability benefits, a matter that can significantly impact the lives of many Filipino seafarers.

Nelson A. Go, a seasoned seafarer, found himself incapacitated by Meniere’s Disease, an illness that both his employer’s and his personal physicians confirmed. The central legal question in this case was whether Go’s condition was work-related, thus entitling him to full disability benefits as per his Collective Bargaining Agreement (CBA). The Supreme Court’s ruling not only addressed Go’s plight but also set a precedent for how similar cases might be handled in the future.

Legal Context

In the Philippines, the rights of seafarers are governed by a combination of statutes, such as the Labor Code, and specific regulations like the Philippine Overseas Employment Administration-Standard Employment Contract (POEA-SEC). The POEA-SEC outlines the conditions under which seafarers may be entitled to disability benefits, including a schedule of disability allowances based on the severity of the impairment.

Key to this case is the concept of work-related illness. According to Section 20(B)(4) of the 2010 POEA-SEC, certain illnesses are presumed to be work-related unless proven otherwise. Meniere’s Disease, affecting the inner ear and causing severe dizziness and hearing loss, falls under this presumption.

The Collective Bargaining Agreement (CBA) between seafarers and their employers plays a pivotal role. The CBA is considered the law between the parties, and its provisions on disability compensation are binding. For instance, Go’s CBA stipulated that a seafarer declared permanently disabled due to an occupational injury or disease could be entitled to full compensation, which in his case was US$90,000.

Another critical legal principle is the finality of labor decisions. If a party fails to appeal a labor arbiter’s decision on a specific issue, that decision becomes final and executory. This principle was central to the Supreme Court’s decision in Go’s case.

Case Breakdown

Nelson A. Go had been working as an oiler/motorman for OSM Maritime Services, Inc. since 2009. In December 2015, while on board the M/V Trinity Arrow, Go suffered from dizziness, vomiting, and chest pain, leading to his diagnosis with sub-acute myocardial infarction and new onset hypertension. He was repatriated and treated by the company-designated physician, Dr. Nicomedes Cruz, who initially diagnosed him with Meniere’s Disease but later declared it non-work-related.

Go, however, sought a second opinion from Dr. Radentor Viernes, who found his condition to be work-related and work-aggravated, stating that the nature of Go’s job exposed him to health hazards that contributed to his illness. This conflicting medical assessment led Go to file a complaint for permanent and total disability benefits.

The journey through the courts began with the Labor Arbiter (LA), who ruled in Go’s favor, awarding him US$3,366 plus attorney’s fees. Go appealed to the National Labor Relations Commission (NLRC), seeking the full US$90,000 as per the CBA. The NLRC, however, denied his appeal, asserting that Meniere’s Disease was not work-related.

Undeterred, Go took his case to the Court of Appeals (CA), which reversed the NLRC’s decision, granting him the full disability benefits. The CA reasoned that the LA’s finding on the work-relatedness of Go’s illness was final since OSM Maritime Services did not appeal that aspect of the LA’s decision.

The Supreme Court upheld the CA’s decision, emphasizing the principle of finality in labor decisions. The Court noted:

“The consequence of petitioners’ failure to appeal the Decision of the LA to the NLRC is that the latter may only limit its review on the issues raised before it. All other matters, including the issue of work relation to the illness, are final.”

The Court also highlighted the binding nature of the CBA, stating:

“It is a fundamental doctrine in labor law that the CBA is the law between the parties and they are obliged to comply with its provisions.”

Practical Implications

This ruling underscores the importance of the finality of labor decisions and the binding nature of CBAs. For seafarers, it reinforces their right to full disability benefits if their illness is deemed work-related and they are permanently unfit for sea duties.

For employers, this case serves as a reminder to carefully consider their appeal strategies in labor disputes. Failing to appeal a decision can result in certain issues becoming final and executory, potentially leading to unfavorable outcomes.

Key Lessons:

• Seafarers should ensure they have a clear understanding of their CBA provisions regarding disability benefits.
• Employers must be diligent in appealing labor decisions that they disagree with to avoid issues becoming final.
• Conflicting medical assessments should be resolved promptly, ideally through a third doctor if necessary, to avoid prolonged disputes.

Frequently Asked Questions

What is considered a work-related illness for seafarers?

A work-related illness for seafarers is one that arises from or is aggravated by the nature of their work, as outlined in the POEA-SEC. Certain illnesses are presumed work-related unless proven otherwise.

How does a seafarer prove that their illness is work-related?

Seafarers can prove work-relatedness through medical certificates from their personal physicians or, ideally, through a third doctor’s assessment if there are conflicting opinions from the company-designated physician.

What happens if an employer does not appeal a labor arbiter’s decision?

If an employer does not appeal a specific issue in a labor arbiter’s decision, that issue becomes final and executory, meaning it cannot be contested in subsequent appeals.

Can a seafarer receive full disability benefits even if their condition does not merit a Grade 1 disability?

Yes, if the seafarer’s CBA stipulates full compensation for permanent disability due to an occupational injury or disease, and they are deemed permanently unfit for sea duties, they can receive full benefits regardless of the disability grade.

What should seafarers do if they face a similar situation?

Seafarers should consult with a labor lawyer to understand their rights under the CBA and the POEA-SEC. They should also seek a second medical opinion if they disagree with the company-designated physician’s assessment.

ASG Law specializes in labor and employment law. Contact us or email hello@asglawpartners.com to schedule a consultation.