In this case, shutting down Paper Mill No.

4 was undoubtedly a business judgment arrived at in the face of the low demand for the production of industrial paper at the time. Despite an apparent reason to implement a retrenchment program as a cost-cutting measure, respondent, did not dismiss the workers affected by the closure of Paper Mill No. 4 outright but gave them an option to be transferred to posts of equal rank and pay. Retrenchment was given only as an option in case the affected employee did not want to be transferred. The Court viewed this as an indication of good faith on respondent s part since it exhausted other possible measures before retrenchment. Besides, the employer s prerogative to bring down labor costs by retrenchment must be exercised essentially as a measure of last resort, after less drastic means have been tried and found wanting. Giving the workers an option to be transferred without any diminution in rank and pay belie petitioner s allegation that the streamlining scheme was implemented as a ploy to ease out employees. Apparently, respondent implemented its streamlining or reorganization plan in good faith, not in an arbitrary manner and without violating the tenurial rights of its employees. Dannie M. Pantoja vs. SCA Hygiene Products Corporation, G.R. No. 163554, April 23, 2010.

Salazar v. Achacoso, 183 SCRA 145 F: Pursuant to the powers vested by PD 1920 and EO 1022, POEA Administrator Achacoso ordered the closure of the recruitment agency of Horty Salazar, having verified that she had no license to operate a recruitment agency. He further ordered the seizure of the documents and paraphernalias, being used or intended to be used as the means of commiting illegal recruitment. This order was enforced on 26 January 1988. Petitioner filed this suit for prohibition. Issue: May the POEA (or the Sec. of Labor) validly issue warrants of serach and seizure (or arrest ) under Art. 38 of the Labor Code?HELD: NO.The provisions of PD 1920 and EO 1022, now embodied in Art. 38 of the Labor Code, are the dying vestiges of authoritarian rule in its twilights moments. Under Art. III, Sec 2 of the 1987 Constitution, it is only judges and no other, who may issue warrants of arrest and search. The exception is in cases of deportation of illegal and undesirable aliens, whom the President of the Commissioner of Immigration may order arrested, following a final order of deportation, for the purpose of deportation. The Sec. of Labor , not being a judge. may no longer issue search or arrest warrants. Hence, the authorities must go through the judicial process. To that extent, we declare Art. 38, par. C of the Labor Code, unconstitutional and of no force and effect.&n bsp; a. Existence of probable cause. Probable cause is such facts and circumstances as would reasonably make a prudent man believe that a crime have been committed and that the documents or things sought to be searched and seized are in the possession of the person against whom the warrant is sought. Without probable cause, there can be no valid search warrant. See Pasionvda. de Garcia v. Locsin, 65 Phil. 689, (1938)