AB Corp. entered into a contract with XY Corp. whereby the former agreed to construct the research and laboratory facilities of the latter. Under the terms of the contract, AB Corp. agreed to complete the facility in $18$ months, at the total contract price of P$10$ million. XY Corp. paid $50\%$ of the total contract price, the balance to be paid upon completion of the work. The work started immediately, but AB Corp. later experienced work slippage because of labor unrest in his company. AB Corp.$$s employees claimed that they are not being paid on time; hence, the work slowdown. As of the $17$th month, work was only $45\%$ completed. AB Corp. asked for extension of time, claiming that its labor problems is a case of fortuitous event, but this was denied by XY Corp. When it became certain that the construction could not be finished on time, XY Corp. sent written notice cancelling the contract and requiring AB Corp. to immediately vacate the premises.

Can the labor unrest be considered a fortuitous event?