When the parties, however, agree to deviate there from, and unqualifiedly covenant the payment of separation benefits irrespective of the employer's financial position, then the obligatory force of that contract prevails and its terms should be carried out to its full effect. If the terms of a CBA are clear and there is no doubt as to the intention of the contracting parties, the literal meaning of its stipulations shall prevail.
Clearly, the fact that the employer, with full knowledge of its financial situation, freely and voluntarily entered into such collective bargaining agreement with its employees, cannot be accepted as an excuse to clear itself of its liability to pay its employees of separation benefits under such agreement.
[2014V693] BENSON INDUSTRIES EMPLOYEES UNION-ALU-TUCP AND/OR VILMA GENON, et al. vs. BENSON INDUSTRIES, INC., G.R. No. 200746, August 06, 2014, J. Perlas-Bernabe
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