Professional Documents
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Labor Relations DIGESTS
Labor Relations DIGESTS
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Labor Relations Cases villadolid digests
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Labor Relations Cases villadolid digests
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Labor Relations Cases villadolid digests
Issue: Whether the NLRC has jurisdiction over the nature hence it is the SEC who has jurisdiction over
complaint filed by the petitioner for illegal dismissal and not the Labor Arbiter.
On appeal, the NLRC reversed the Labor Arbiter
HELD: NO and ruled that the case was one which involved a
Under P.D. No. 902-A, it is the Securities and Exchange labor dispute, thus the NLRC has jurisdiction to
Commission and not the NLRC that has original and resolve the case
exclusive jurisdiction over cases involving the removal
from employment of corporate officers. Under the said Issue: Whether the NLRC has jurisdiction over the
decree, the SEC has the exclusive and original controversy and not the SEC
jurisdiction to hear and decide cases involving
Controversies in the election or appointments of HELD: YES
directors, trustees, officers or managers of such The NLRC has jurisdiction over the case. The fact that
corporations, partnerships or associations. the parties involved in the controversy are all
stockholders and the corporation does not necessarily
It has been ruled that a corporate officers dismissal is place the dispute within the jurisdiction of SEC. In order
always a corporate act and/or an intra-corporate that the SEC can take cognizance of a case, the
controversy and that nature is not altered by the reason controversy must pertain to factors such as the status or
or wisdom which the Board of Directors may have in relationship of the parties or the nature of the question
taking such action. Evidently, this intra-corporate that is the subject of their controversy. Furthermore, it
controversy must be place under the specialized does not necessarily follow that every conflict between
competence and expertise of the SEC. corporation and its stockholders can only be resolve by
the SEC.
The fact that petitioner sought payment of his
backwages, other benefits, as well as damages and In the CAB, the claim for unpaid wages and separation
attorney's fees in his complaint for illegal dismissal will pay involves a labor dispute. It does not involve an
not operate to prevent the SEC from exercising its intra-corporate matter, even when it is between a
jurisdiction under PD 902-A. As to the contention of stockholder and a corporation. It relates to an ER-EE
Espino that PAL is estopped from questioning the relationship which is distinct from the corporate
jurisdiction of the NLRC, it is well-settled that jurisdiction relationship of one with the other. Therefore, since the
over the subject matter is conferred by law and the complaint of Movilla involves a labor dispute, it is the
question of lack of jurisdiction may be raised anytime NLRC which has jurisdiction over the CAB.
even on appeal.
WHEREFORE, PETITION IS DENIED
WHERFORE, PETITION IS DENIED
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Labor Relations Cases villadolid digests
Issue: Whether it is the court of general jurisdiction and Labor Arbiter ordered petitioner to pay Vega P2,000
not the Labor Arbiter that has exclusive jurisdiction over as financial assistance. Both parties assailed said
the recovery of unpaid salaries, separation and damages decision of the Labor Arbiter. The NLRC set aside
the decision of the Labor Arbiter and ordered SMC to
HELD: NO pay complainant the amount of P60,000
SC ruled that the Labor Arbiter has exclusive jurisdiction
over the case. Jurisdiction over the subject matter is Issue: Whether the Labor Arbiter and the Commission
conferred by the sovereign authority which organizes the has jurisdiction over the money claim filed by private
court; and it is given by law. Jurisdiction is never respondent
presumed; it must be conferred by law in words
that do not admit of doubt. HELD: NO
The Labor Arbiter and the Commission has no
Under the Labor Code, the NLRC has the exclusive jurisdiction over the money claim of Vega.
jurisdiction over claims, money or otherwise, arising
from ER-EE relations, except those expressly excluded The court ruled that the money claim of private
therefrom. The claim for the said prize unquestionable respondent Vega arose out of or in connection with his
arose from an ER-EE relation and, therefore, falls within employment with petitioner. However, it is not enough
the coverage of P.D. 1691, which speaks of all claims to bring Vegas money claim within the original and
arising from ER-EE relations, unless expressly excluded exclusive jurisdiction of Labor Arbiters.
by this Code. To hold that Tumalas claim for the prize
should be passed upon by the regular courts of justice In the CAB, the undertaking of petitioner SMC to grant
would be to sanction split jurisdiction and multiplicity of cash awards to employees could ripen into an
suits which are prejudicial to the orderly of enforceable contractual obligation on the part of
administration of justice. petitioner SMC under certain circumstances. Hence, the
issue whether an enforceable contract had arisen
WHEREFORE, PETITION IS GRANTED. between SMC and Vega, and whether it has been
breached, are legal questions that labor legislations
cannot resolved because its recourse is the law on
SAN MIGUEL CORP. vs NLRC (1988) contracts.
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Labor Relations Cases villadolid digests
he received a letter ordering him to report back for of Free Workers (FFW).
work since his request was disapproved. He decided An investigation was conducted due to reports
not to report back because of the considerable that Soco was carrying on his union activities during
expenses already incurred in Manila. Hence, he working hours. It appears that on January 1979,
received a application for a clearance to terminate Soco was ordered to deliver ice cream at Imperial
on the ground of resignation/or abandonment. Hotel and Your Goody Mart, but he deviated from his
Suario failed to file his opposition because he was usual route and went to his co-employee, who was
busy taking up the review then off duty. The personnel officer advised Soco to
During the 1st week of December 1976, Suario report to his office to explain his unauthorized
went to respondent BPI but was verbally informed deviation but Soco did not comply. MERCO wrote to
that he was already dismissed. He wrote a letter to FFW asking for a grievance conference but Soco
the respondent bank requesting for a written and refused to attend in his belief that such in
formal advise as to his real status. The lawyers of unnecessary. Hence, MERCO suspended Soco for 5
BPI replied that his services is terminated. days for violation of Company Rule No. 19(a).
Therefore, Suario filed a complaint for separation On February 13, 1979, Soco, after making
pay, damages and attorneys fees against the BPI on deliveries of ice cream, went to the Office of the
the ground that he was illegally dismissed. SPFL Union. The Manager of MERCO saw the
The Labor Arbiter ordered BPI to pay Suarios company vehicle parked along the street. He called
claim for separation pay. His claim for damages and two of his co-employees and took out the rotor of
attorneys fee were dismissed for lack of merit the van. When Soco came out of the building, he
On appeal, NLRC affirmed the decision of the was unable to start the engine and called for
Labor Arbiter company assistance. Again, he was advised to report
to the office to explain but refused to do so. He also
Issue1: Whether NLRC has no authority to entertain refused to attend in the grievance conference.
claims for moral and other forms of damages Soco filed a complaint for Unfair Labor Practice
HELD:NO against MERCO alleging that the 5 days suspension
P.D. 1691, a decree which substantially reenacted Article imposed on him was on account of his union
217 of the Labor Code in its original form, nullified P.D. activities. On the other hand, MERCO filed an
1367 and restored to the Labor Arbiters and the NLRC application for clearance to terminate the services
their jurisdiction to award all kinds of damages in cases of Soco. These 2 cases were consolidated and tried
arising from ER-EE relationship. jointly as agreed by the contending parties
The Regional Director granted MERCOs
Issue2: Whether petitioner Suario is entitled to his application to terminate employment of petitioner
claim for moral damages and dismissed the Socos complaint for unfair labor
HELD: NO practice
Although it is already settled that Labor Arbiters are On appeal, the Deputy Minister of Labor affirmed
allowed to award moral and other forms of damages Petitioner Soco argued that under Policy No. 6 of
arising from ER-EE relations, it is consistently ruled that the Ministry of Labor and Employment (MOLE), the
in the absence of a wrongful act or omission or of fraud Regional Director has no jurisdiction to hear and
or bad faith, moral damages cannot be awarded decide unfair labor practice cases because such
belongs to the Conciliation Section of the Regional
The SC did not find any bad faith or fraud on the part of Office of the MOLE. In short, such cases should be
the bank officials who denied the petitioners request for first resolved by the Labor Arbiter and not the
6 months leave of absence without pay. He was merely Regional Director. Furthermore, Soco asserts that
given personal assurances which could be reconsidered the Deputy Minister of Labor violated the
in later developments. There is no evidence that they constitutional provision of security of tenure of
meant to deceive the petitioner. employees and that assuming that he violated the
company rule, he cannot be dismissed because his
Therefore, the fact that petitioners request was denied, violation only minimal and did not hamper the
does not entitle him to damages. operations of MERCO.
WHEREFORE, PETITION DENIED. Issue1: Whether the Regional Director has no authority
to decide the unfair labor practice cases
HELD1: NO
SOCO vs MERCANTILE CORP. OF DAVAO (1987) After voluntarily submitting a cause and encountering an
adverse decision on the merits, its too late for the loser
FACTS: to question the jurisdiction or the power of the court.
Respondent Mercantile Corp is engaged in the In the CAB, in the initial hearing conducted by the
sale and distribution of Ice Cream in Davao. Regional Director, it was agreed by the parties to
Petitioner, who was employed as driver of consolidate the 2 cases considering that both cases
respondents delivery van, was the President MERCO concern the same parties and the issues involved are
Employees Labor Union, an affiliate of the Federation interrelated. Petitioner Soco obviously accepted the
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jurisdiction of the Regional Director by presenting his acquired jurisdiction over the DOA. Hence, its
evidence. By having asked for affirmative relief, without decision was null and void. It also pointed out that
challenging the Regional Director's power to hear and try the attachment of its property would jeopardize its
his complaint for unfair labor practice, he cannot governmental functions to the prejudice of the public
rightfully now challenge the resolution made in said good
cases by the same Director, based on the latter's alleged NLRC --- dismissed the petition for injunction
lack of jurisdiction. for lack of basis and a Temporary Stay of Execution
is issued for a period of 2 months but not extendible.
Issue2: Whether petitioner can avail the security of DOA charges NLRC for grave abuse of discretion
tenure for refusing to quash the writ of execution. It argued
HELD2: that money claims against the Department falls
It is the prerogative of an employer company to under the exclusive jurisdiction of the Commission
prescribe reasonable rules and regulations necessary or on Audit. Further, the DOA asserts that the NLRC
proper for the conduct of its business and to provide has disregarded the cardinal rule on the non-
certain disciplinary measures in order to implement said suability of the State.
rules and to assure that the same would be complied NLRC, on the other hand, argue that petitioner has
with. A rule prohibiting employees from using company impliedly waived its immunity from suit by concluding a
vehicles for private purpose without authority from service contract with Sultan Security Agency
management is, from our viewpoint, a reasonable one.
Issue: Whether the DOA can be sued
The Court is not unmindful of the fact that petitioner
has, as he says, been employed with petitioner HELD:
Company for eighteen (18) years. On this singular Under the Constitution, it says that the State cannot be
consideration, the Court deems it proper to afford sued without its consent. This simply means that a
some equitable relief to petitioner due to the past sovereign is exempt from suit on the ground that there
services rendered by him to MERCO. Thus, it is but can be no legal right as against the authority that makes
appropriate that petitioner should be given by the law on which the right depends. This doctrine is also
respondent MERCO, separation pay, equivalent to one called the royal prerogative of dishonesty because it
month salary for every year of his service to said grants the State the prerogative to defeat any legitimate
Company. claim against it by simply invoking its non-suability
WHEREFORE, PETITION IS DENIED but MERCO is This rule is not really absolute for it does not say that
nevertheless, ordered to grant Soco his separation state may not be sued under any circumstances. The
pay. States consent may be given expressly or impliedly.
Express consent may be made through a general law or
special law. On the other hand, Implied consent is when
DEPARTMENT OF AGRICULTURE vs NLRC (1993) the State itself commences litigation, thus opening itself
to a counterclaim, or when it enters into a contract
FACTS:
In the CAB, the claims of the security guards arising
Petitioner DOA and Sultan Security Agency from the Contract for Service, clearly constitute money
entered into a contract for security services to be claims. Under Act No. 3083, a general law, the State
provided by the latter to the said government entity. consents and submits to be sued upon any moneyed
In September 13, 1990, several guards of the Sultan claim involving liability arising from contract, express or
Security Agency filed a complaint for underpayment implied. However, the money claim must first be
of wages, non-payment of 13th month pay, uniform brought to the Commission on Audit
allowances, night shift differential pay, holiday pay
and overtime pay, as well as for damages against WHEREFORE, PETITION IS GRANTED
the DOA and the Sultan Security Agency before the
Regional Arbitration Branch in Cagayan De Oro City
The Labor Arbiter found DOA jointly and HAGONOY WATER DISTRICT vs NLRC (1988)
severally liable with Sultan Agency for the payment
of money claim of the guards FACTS:
The Labor Arbiter issued a Writ of Execution
commanding the City Sheriff to enforce and execute Private Respondent Dante Villanueva was
the judgment against the DOA and Sultan. The City employed as service foreman by petitioner Hagonoy
Sheriff levied on execution 3 motor vehicles of the when he was indefinitely suspended and thereafter
DOA dismissed for abandonment of work and conflict of
Petitioner DOA filed a petition for injunction, interest
prohibition and mandamus, with prayer for Villanueva filed a complaint for illegal dismissal,
preliminary injunction with the NLRC Cagayan De illegal suspension and underpayment of wages and
Oro. It argued that the writ of execution was emergency cost of living allowance against Hagonoy
effected without the Labor Arbiter having duly with the Ministry of Labor and Employment in San
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Fernando, Pampanga
Petitioner Hagonoy moved for dismissal on the
ground of lack of jurisdiction. Being government
entity, its personnel are governed by the provisions
of the Civil Service Law and not by the Labor Code.
And the protests concerning the lawlessness of
dismissal from service fall within the jurisdiction of
the Civil Service Commission and not the Ministry of
Labor and Employment.
The Labor Arbiter rendered a decision on favor of
Villanueva
NLRC affirmed the decision of the Labor Arbiter.
A Writ of Execution was issued by the Labor
Arbiter to garnish petitioner Hagonoys deposits with
the planters Development Bank.
Hagonoy filed a Motion to Quash the Writ of
Execution with Application for Writ of Preliminary
Injunction. NLRC denied the application.
HELD: YES
The Labor Arbiter, in asserting that it has jurisdiction
over the employees of Hagonoy, relied on P.D. No. 198,
known as Provincial Water Utilities Act of 1973 which
exempts employees of water districts from the
application of the Civil Service Law. However, the Labor
Arbiter failed to take into account that P.D. 1479 wiped
away the said exemption
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HELD: YES Midas Touch Food Corp. vs NLRC and Iris Fe Isaac
A party, who failed to appeal on time from a decision of (1996)
the Labor Abiter to the NLRC, may still participate in a
separate appeal timely filed by the adverse party by a Facts:
Motion for Reconsideration of the NLRC decision. In the Respondent Iris Fe Isaac was dismissed as operations
CAB, there is no question that respondents failed to file a manager by petitioner for alleged lack of self confidence.
timely appeal from the decision of the Labor Arbiter. Respondent filed a complaint for illegal dismissal before
Hence, having lost the right to appeal, the respondent the Labor Arbiter which rendered a decision in favor of
may choose to file a Motion for Reconsideration instead. petitioner finding the said dismissal to be valid. However,
petitioner was ordered to pay the complainants there
separation pay, etc. Both parties appealed to the NLRC
St. Martin Funeral Homes vs. NLRC and B. Aricayos and the decision of the Labor Arbiter was reversed, this
(1998) time ruling in favor of Isaac. Hence, petitioner elevated
the case to the SC assailing the decision of the NLRC.
Facts:
P. respondent was dismissed from work by petitioner for Issue: Whether the petitioner may avail the special civil
allegedly misappropriating P38,000.00. Hence, a action for certiorari?
complaint was filed for illegal dismissal before the NLRC.
Petitioner argued that respondent was not its employee. Held: YES
The Labor Arbiter ruled in favor of petitioner declaring The rule requiring motion for reconsideration before filing
that no employer-employee relationship between the a petition for certiorari admits of certain exceptions,
parties and therefore his office had no jurisdiction over among which is the finding that under the circumstances
the case. On appeal, the NLRC set aside the questioned of the case, a motion for reconsideration would be
decision and remanding the case to the labor arbiter for useless.
immediate appropriate proceedings.
In this case, the Supreme Court found it quite impossible
Issue: Whether or not the decision of the NLRC are for the NLRC to reverse itself under the foregoing facts
appealable to the Court of Appeals. and so, a motion for reconsideration will be deemed
useless.
Held: YES
The Supreme Court clarified and stressed that ever since Alindao vs Hon. Hoson (1996)
appeals from the NLRC to the Supreme Court were
eliminated, the legislative intendment is that the special Facts:
civil action of certiorari was and still the proper vehicle Petitioner applied for employment for Saudi Arabia
for judicial review of decisions of the NLRC. The through private respondent Hisham General Services
concurrent original jurisdiction of the Supreme Court can Contractor. She paid a placement fee of P15,000.00
be availed of only under compelling and exceptional without receipt. When she arrived in Saudi arrived in
circumstances. Saudi Arabia, she was made to work as a domestic helper.
Because of unfair working conditions, she worked at
To further explain, (1) the way to review NLRC decision several residences until she saved enough money to
is through the special civil action of certiorari under Rule return home. When she arrived in the Philippines, she filed
65; (2) the jurisdiction of such action belongs both to the with POEA a complaint against Hisham for breach of
SC and CA; but (3) in line with the doctrine of hierarchy, contract. The POEA rendered a decision suspending
of courts, the petition should be initially presented to the Hisham and to pay petitioner her money claims. Hisham
lower court of the two courts, that is the Court of appealed to the NLRC and filed a MFR with the POEA. The
Appeals. NLRC affirmed the decision of the POEA. Hisham now
argues that the order cannot be enforced because the MFR
was still pending with the POEA. Respondent POEA
Sunshine Transportation Inc. vs NLRC and R. administrator Joson find the MFR of Hisham to be
Santos (1996) meritorious. Hence, petitioner elevated this case to the SC
Facts: Issue: Whether the petitioner may avail the special civil
P. respondent Santos was dismissed from work as a bus action for certiorari without first filing a motion for
driver by Petitioner for failing to submit a written reconsideration?
explanation why he failed to report for his scheduled trip.
Respondent filed a complaint with the Labor Arbiter for Held: YES
illegal dismissal. The Labor Arbiter ruled in favor of the It has been held that the requirement of a motion for
petitioner and dismissed the complaint. This was reconsideration may be dispensed with in the following
affirmed by the NLRC but granted Santps money claims. instances: (1) when the issue raised is one purely of law;
Unsatisfied with the decision, petitioner elevated the (2) where public interest is involved; (3) in cases of
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urgency; and (4) where special circumstances warrant that order "on the merits or in substance can no longer be
immediate or more direct action. entertained
On the other hand, among the accepted exceptions to
the rule on exhaustion of administrative remedies are: Issue: Whether the NLRC committed grave abuse of
(1) where the question in dispute is purely a legal one; discretion
and (2) where the controverted act is patently illegal or
was performed without jurisdiction or in excess of Held: YES
jurisdiction. The NLRC committed grave abuse of discretion in refusing
to take account of the fact, as shown in the record, that
The petition involves a pure question of law and the the appeal of Nolasco was late because it was not filed
challenged order is void for want of jurisdiction on the within the reglementary period
part of respondent Joson.
No acceptable reason has been advanced by Nolasco, and
none appears upon the record, to excuse his tardiness in
Metro Transit Organization vs. CA, et al. (2002) the taking of the appeal. Petitioner's opposition to the
appeal should have been sustained, and the NLRC should
Facts: never have taken cognizance of the appeal.
Respondent Ruperto Evangelista, a cash assistant in the
treasury division of the petitioner, was dismissed from
work for being alleged to be responsible for the loss of
tokens. He was terminated for lack of trust and
confidence. Evangelista filed a case for illegal dismissal.
The Labor Arbiter ruled in his favor and ordered his
reinstatement with payment of full backwages. This was PAL vs. NLRC (1989)
affirmed by the NLRC. Hence, petitioner directly filed
with the Court of Appeals a petition for certiorari under Facts:
Rule 65. The CA, on the other hand, affirmed the ruling Private respondent Dolina completed his training course
of both the labor arbiter and NLRC, holding that a motion with PAL as pilot. He was given temporary appointment for
for reconsideration is necessary before resorting to a 6 months as Limited First Officer. He applied for
petition for certioarari. regularization as First Officer and undergoes the required
psychological examination wherein his "Adaptability
Issue: Whether the petitioner may elevate the case Rating" was found to be "unacceptable" and the Pilot
before the CA without first filing a motion for Acceptance Qualifications Board finds him not qualified for
reconsideration with the NLRC? regular employment in the Company. Dolina was placed
under preventive suspension; hence he filed a complaint
Held: NO for illegal dismissal.
Generally, certiorari as a special civil action will not lie The Labor Arbiter found the dismissal of Dolina justified,
unless a motion for reconsideration is filed before the hence, PAL discontinued the payment of Dolinas salary.
respondent tribunal to allow it an opportunity to correct Dolina objected on the ground that the discontinuance an
its imputed errors. However, the following have been earlier agreement that he would be kept in the payroll
recognized as exceptions to the rule: until the case was finally resolved by arbitration. On
(1) when the issue raised is one purely of law; (2) where appeal, the NLRC affirmed the decision of the Labor
public interest is involved; (3) in cases of urgency; and Arbiter but ordered the company to continue paying
(4) where special circumstances warrant immediate or Dolinas salary since the arbitration case was not yet over.
more direct action. Issue: Whether the NLRC committed grave abuse of
On the other hand, among the accepted exceptions to discretion in holding that Dolina was entitled to his
the rule on exhaustion of administrative remedies are: salaries "until this case is finally resolved."
(1) where the question in dispute is purely a legal one; Held: YES
and (2) where the controverted act is patently illegal or The order of the NLRC to continue paying Dolina his salary
was performed without jurisdiction or in excess of was an abuse of discretion. The clause "pending final
jurisdiction. resolution of the case by arbitration" should be understood
to be limited only to the proceedings before the Labor
To dispense with a motion for reconsideration, there Arbiter, such that when the latter rendered his decision,
must a be concrete, compelling and valid reason for the the case was finally resolved by arbitration.
failure to comply with the requirement.
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Held: YES
A third party whose property has been levied upon by a
sheriff to enforce a decision against a judgment debtor is
afforded with several alternative remedies to protect its
interests. The third party may avail himself of alternative
remedies cumulatively, and one will not preclude the
third party from availing himself of the other alternative
remedies in the event he failed in the remedy first
availed of.
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FACTS:
A petition for certification election was filed by private
respondents Kampil-Katipunan on behalf of the
supervisors union, a union where the supervisory,
administrative personnel, production, accounting and
confidential employees of the petitioner were affiliated.
Petitioner opposed the petition on the ground that Kampil
Katipunan cannot represent the supervisory employees for
the purpose of collective bargaining because said Kampil
Katipunan also represents the rank-and-file employees
union. The Med-Arbiter rendered a decision in favor of the
private respondent. On appeal, the Secretary of Labor
affirmed the decision of the Med-Arbiter. Petitioner now
argue that to allow the supervisory employees to affiliate
with the Kampil Katipunan is tantamount to allowing the
circumvention of the principle of the separation of unions
under Art. 245 of the Labor Code.
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Held:
FACTS:
Petitioner SPF filed with the DOLE a petition for
certification election among the rank-and-file employees PHILIPPINE PHOSPHATE FERTILIZER CORP. vs.
of private respondent Apex Minong Co. The Med-Arbiter HON. TORRES (1974)
granted the petition and directed the holding of the
certification election. During the pre-election conference,
petitioner union objected to the inclusion in the list of FACTS:
workers prepared by Apex the following: (1) employees
occupying the positions of Supervisor I, II and III; (2) Issue:
employees under confidential/special payrolls; and (3)
employees who were not paying dues. According to Held:
petitioner, the mentioned employees were disqualified
from participating in the certification election since the
Supervisors were managerial employees while the last NATIONAL ASSOCIATION OF TRADE UNIONS vs.
two were disqualified by virtue of their non-membership HON. TORRES (1994)
in the Union and their exclusion from the benefits of the
collective bargaining agreement. After the certification of
election was conducted, respondent Union filed an FACTS:
urgent motion to open the challenged ballots. The Med- Petitioner NATU filed a petition for certification election to
Arbiter granted the motion and directed the challenged determine the exclusive bargaining representative of
ballots be opened and inventoried. Petitioner appealed to respondents bank employees occupying supervisory
the BLR wherein respondent Director Ferrer-Calleja positions. The Bank moved to dismiss on the ground that
dismissed said appeal and affirmed the decision of the said supervisory employees were actually
Med-Arbiter and ordered that the 197 ballots should be managerial/confidential employees, thus, they are
opened and canvassed. As a consequence of the opening ineligible to join, assist or form a union. The Med-Arbiter
and canvass of the challenged ballots, the Med-Arbiter granted the petition and directed the holding of the
certification election. The Bank appealed to the Secretary
Issue: Whether respondent Director committed grave of Labor. Said court partially granted the appeal ruling
abuse of discretion in not excluding the 197 employees that the Department Managers, Assistant Managers,
from voting in the certification election Branch Managers, Cashiers and Controllers are declared
managerial employees and cannot join the union of the
Held: NO supervisors.
The functions of the questioned positions are not
managerial in nature because they only execute Issue: Whether
approved and established policies leaving little or no
discretion at all whether to implement the said policies or Held:
not. The respondent Director, therefore, did not commit Petitioner concludes that subject employees are not
grave abuse of discretion in dismissing the petitioner's managerial employees but supervisors. Even assuming
appeal from the Med-Arbiter's Order to open and count that they are confidential employees, there is no legal
the challenged ballots in denying the petitioner's motion prohibition against confidential employees who are not
for reconsideration and in certifying the respondent performing managerial functions to form and join a union.
Union as the sole and exclusive bargaining A confidential employee is one entrusted with confidence
representative of the rank-and-file employees of on delicate matters, or with the custody, handling, or care
respondent Apex . and protection of the employer's property. While Art. 245
As regards the employees in the confidential payroll, the of the Labor Code singles out managerial employees as
petitioner has not shown that the nature of their jobs is ineligible to join, assist or form any labor organization,
classified as managerial except for its allegation that under the doctrine of necessary implication, confidential
they are considered by management as occupying employees are similarly disqualified.
managerial positions and highly confidential. Neither can
payment or non-payment of union dues be the
determining factor of whether the challenged employees MERALCO vs. HON. QUISUMBING (1999)
should be excluded from the bargaining unit since the
union shop provision in the CBA applies only to newly FACTS:
hired employees but not to members of the bargaining A petition for certification election was filed by the labor
unit who were not members of the union at the time of organization of staff and technical employees of MERALCO
the signing of the CBA. It is, therefore, not impossible for seeking to represent regular employees of MERALCO.
employees to be members of the bargaining unit even MERALCO contended that those in the Patrol Division and
though they are non-union members or not paying union Treasury Security Service Section, since these employees
dues. are tasked with providing security to the company, they
are not eligible to join the rank and file bargaining unit.
GOLDEN FARMS INC. vs. HON. FERRER-CALLEJA The Med-Arbiter ruled that having been excluded from the
(1989) existing Collective Bargaining Agreement for rank and file
employees, these employees have the right to form a
FACTS: union of their own, except those employees performing
The National Federation of Labor (NFL) filed a petition managerial functions. The Secretary of Labor affirmed said
for certification election in behalf of certain employees order.
and foreman of petitioner before the DOLE. Petitioner
opposed said petition arguing that Issue: Whether security guards may join rank-and-file or
supervisors union
The NFL appealed but it was dismissed. Hence, it re-filed
the petition for certification which was also dismissed. Held:
Under the old rules, security guards were barred from
joining a labor organization of the rank and file, under RA
Issue: 6715, they may now freely join a labor organization of the
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rank and file or that of the supervisory union, depending not provided in the CBA
on their rank. By accommodating supervisory When renegotiation of the CBA was approaching,
employees, the Secretary of Labor must likewise apply the management wrote to the Union that it was willing
the provisions of RA 6715 to security guards by to consider including the union members in the profit-
favorably allowing them free access to a labor sharing scheme provided that the negotiations would
organization, whether rank and file or supervisory, in be concluded prior to December 1987
recognition of their constitutional right to self- Sometime later, the company distributed the
organization. profit-sharing benefit not only to the managers and
supervisors but also to all rank-and-file employees not
covered by the CBA because they were excluded from
the definition of bargaining unit.
This caused the respondent Union to file a notice
MARIANO vs. ROYAL INTEROCEAN LINES (1961) of strike alleging that petitioner was guilty of unfair
labor practice because the union were discriminated
FACTS against in the grant of the profit sharing benefits
Petitioner Ermidia A. Mariano was a Issue: Whether the grant by management of profit
stenographer-typist and filing clerk of respondent sharing benefits to its non-union member employees is
when she was dismissed from work. She sent a letter discriminatory against its workers who are union members
to the managing directors of the company in HK and amounts to ULP?
through its manager in the Philippines, respondent
J.V. Kamerling. In the letter, she complained about Held: NO. Petition Granted
Kamerlings inconsiderate and untactful attitude There can be no discrimination committed by petitioner as
towards the employees under him and the clients of the situation of the union employees are different and
the company. Kamerling adviced petitioner that her distinct from the non-union employees. Discrimination
letter had been forwarded to the managing directors per se is not unlawful. There can be no discrimination
in HK and that said directors believed that it was where the employees concerned are not similarly situated.
impossible to maintain her in the company.
Petitioner sought reconsideration of her dismissal The grant by petitioner of profit sharing benefits to the
from the managing directors in HK but received no employees outside the "bargaining unit" falls under the
answer to any of her 5 letters. ambit of its managerial prerogative. It appears to have
The Company finally offered a compromise been done in good faith and without ulterior motive. More
settlement with the petitioner whereby she would so when as in this case there is a clause in the CBA where
be paid a sum equivalent to 6 months salary, the employees are classified into those who are members
provided that she would sign a quitclaim embodying of the union and those who are not. In the case of the
a provision that she would release the company from union members, they derive their benefits from the terms
any liability arising from her employment. Not and conditions of the CBA contract which constitute the
satisfied with the compromise, the petitioner filed a law between the contracting parties. Both the employer
complaint for unfair labor practice against the and the union members are bound by such agreement.
company. The CIR rendered judgment holding the
company guilty of unfair labor practice and ordered
them to reinstate petitioner to her former position. PHIL. GRAPHIC ARTS INC. vs. NLRC (1988)
The company filed with the SC a petition to
review the decision of the CIR. The SC ruled in favor FACTS:
of the company. Hence, this appeal.
In October 1984, petitioner corporation was forced
Issue: Whether the petitioner was guilty of unfair labor by economic circumstances to require its workers to
practice in dismissing the respondent go on mandatory vacation leave in batches of seven or
nine for periods ranging from 15, 30, to 45 days. The
Held: NO. Petition Denied. workers were paid while on leave but the pay was
As the respondent's dismissal has no relation to union charged against their respective earned leaves.
activities and the charges filed by her against the As a result, the private respondents filed
petitioner had nothing to do with or did not arise from complaints for unfair labor practice and discrimination.
her union activities, the dismissal did not constitute
Unfair Labor Practice. Despite the employees right to self Issue: Whether the forced vacation leave without pay
organization, the employer still retains his inherent right constitutes unfair labor practice
to discipline his employees, his normal prerogrative to
hire or dismiss them. In this case, the court ruled that Held: NO. Petition Granted
the dismissal of the employee was unjustified, but the There was no unfair labor practice in this case. Private
employer did not commit Unfair Labor Practice because respondents never questioned the existence of an
the act has no union connection. economic crisis but, in fact, admitted its existence. There
is basis for the petitioner's contentions that the reduction
of work schedule was temporary, that it was taken only
WISE AND CO. INC. vs. WISE AND CO. INC. after notice and consultations with the workers and
EMPLOYEES UNION (1989) supervisors, that a consensus was reached on how to deal
with deteriorating economic conditions and reduced sales
FACTS: and that the temporary reduction of working days was a
more humane solution instead of a retrenchment and
The management issued a Memorandum Circular reduction of personnel. The petitioner further points out
introducing a profit-sharing scheme for its managers that this is in consonance with the CBA between the
and supervisors. employer and its employees.
Respondent Union wrote to petitioner to ask that
the union members be allowed to participate in the Likewise, the forced leave was enforced neither in a
profit-sharing program. The management denied the malicious, harsh, oppressive, vindictive nor wanton
request on the ground that such participation was
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manner, or out of malice or spite. Hence, ULP is not (downsizing) of its employees and operations
committed. Petitioner applied for clearance to terminate the
services of a number of employees pursuant to its
retrenchment program. Respondent union filed a
complaint of illegal lockout against the petitioner.
Respondent Union filed a complaint for ULP.
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Labor Relations Cases villadolid digests
one location to another to escape union labor regulations Issue: Whether the Company is guilty of discriminatory
or state laws, but the term is also used to describe a acts in the selection of employees to be retrenched
plant removed to a new location in order to discriminate
against employees at the old plant because of their union Held: YES.
activities. It is one wherein the employer moves its The retrenchment undertaken by the Company is valid.
business to another location or it temporarily closes its However, the manner in which this is exercised should not
business for anti-union purposes. be tainted with abuse of discretion. Labor is a person's
means of livelihood. He cannot be deprived of his labor or
In this case, Ionics was not set up for the purpose of work without due process of law. The retrenchment of
transferring the business of Complex. At the time the employees who belong to a particular union, with no
labor dispute arose, Ionics was already existing as an satisfactory justification why said employees were singled
independent company. It cannot, therefore, be said that out, constitutes ULP.
the temporary closure in Complex and its subsequent
transfer of business to Ionics was for anti-union In this case, the Company had indeed been discriminatory
purposes. in selecting the employees who were to be retrenched. All
We, likewise, disagree with the Union that there was in of the retrenched employees are officers and members of
this case an illegal lockout/illegal dismissal. Lockout is the NAFLU. It leads Us to conclude that the firm had been
the temporary refusal of employer to furnish work as a discriminating against membership in the NAFLU, an act
result of an industrial or labor dispute. It may be which amounts to interference in the employees' exercise
manifested by the employer's act of excluding employees of their right of self-organization. This interference is
who are union members. considered an act of ULP
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Labor Relations Cases villadolid digests
In Villar v. Inciong, we held that "petitioners, although Federation of Labor Union (NAFLU). Because of the
entitled to disaffiliation from their union and to form a expulsion, petitioners were dismissed by the
new organization of their own must however, suffer the Corporation upon the unions demand.
consequences of their separation from the union under Both the Labor Arbiter and the NLRC found the
the security clause of the CBA" CBA and theunion security clause valid and considered
the termination of petitioners justified.
Petitioners argue that their dismissal is not valid
because they did not affiliate with the NAFLU. They
claim that there is a connivance between respondents
Company and Union in their illegal dismissal in order
to avoid the payment of separation pay by respondent
company.
Held: NO
The mere act of seeking help from the NAFLU cannot
constitute disloyalty as contemplated in the Collective
Bargaining Agreement. At most it was an act of self-
preservation of workers who, driven to desperation found
shelter in the NAFLU who took the cudgels for them.
FACTS:
Held: YES
The act of compelling employees to sign an instrument
indicating that the employer observed labor standards
provisions of law when he might have not, together with
the act of terminating or coercing those who refuse to
cooperate with the employer's scheme constitutes unfair
labor practice. The first act clearly preempts the right of
the hotel's workers to seek better terms and conditions
of employment through concerted action. In not giving
positive testimony in favor of her employer, petitioner
had reserved not only her right to dispute the claim and
proffer evidence in support thereof but also to work for
better terms and conditions of employment.
FACTS:
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FACTS:
Collective bargaining which is defined as negotiations Petitioner San Miguel Corporation Employees
towards a collective agreement, is one of the democratic Union entered into a CBA with private respondent San
frameworks under the New Labor Code, designed to Miguel Corporation (SMC)
stabilize the relation between labor and management It provides that the agreement SHALL REMAIN IN
and to create a climate of sound and stable industrial FORCE AND EFFECTIVE until 1992, and the terms of
peace. It is a mutual responsibility of the employer and the agreement shall be for 5 years. from 1989 to
the Union and is characterized as a legal obligation. 1992.
For purposes of business expansion, the SMC
would undergo with reconstructing, the magnolia and
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Labor Relations Cases villadolid digests
the Feeds and livestock Division were spun-off and mandate salary increases.
become two separate and distinct corporation. But The union filed a complaint with the NLRC alleging
the CBA remain in forced and effective. that private respondent's act of promise clearly
During the negotiation the petitioner union constitutes act of unfair labor practice through
insisted that the bargaining unit of SMC should still bargaining in bad faith."
include the employees of the spun-off corporations,
which is the MAGNOLIA and SMFI and that the Labor Arbiter: denied the complaint for lack of merit.
renegotiation terms of the CBA shall be effective NLRC: affirmed the LA
ONLY for the remaining period of 2 years.
On the other hand the SMC contended that the Issue: WON the act of the private respondent constitute
members or employees WHO HAD MOVED TO unfair labor practice through bargaining in BAD FAITH.
MAGNOLIA AND SMFI, SHALL AUTHOMATICALLY
CEASED TO BE PART OF THE BARGAINING UNIT at Held: NO
the SMC, and that the CBA shall be effective for The Court ruled that under Article 252 it states that the
3years in accordance with ART.253-A duty to bargain "does not compel any party to agree to a
Unable to agree with these issues of bargaining proposal or make any concession." Thus, petitioner union
unit and duration of the CBA, petitioner union may not validly claim that the proposal embodied in the
declared a deadlock and filed a notice of strike. Minutes of the negotiation forms part of the CBA that it
finally entered into with private respondent.
Held:
Spin-off of Magnolia and San Miguel Foods Companies And by making such promise, private respondent may not
from the San Miguel Corporation as separate corporate be considered in bad faith or at the very least, petitioner
entities. Existing CBA included all four divisions. During union had, under the law, the right and the opportunity to
the renewal or renegotiation for two years on the insist on the fulfillment of the private respondent's
economic provisions, spin-off corporations were already promise by demanding its incorporation in the CBA.
in existence. The Union insisted that the employees of "Because the proposal was never embodied in the CBA,
the spun-off corporations were still to be considered as the promise has remained just that, a promise, the
part of the appropriate bargaining unit. implementation of which cannot be validly demanded
under the law."
Considering the spin-off, the companies would
consequently have their respective and distinctive
concerns in terms of the nature of work, wages, hours of
work and other conditions of employment. The interests NEW PACIFIC TIMBER vs. NLRC (1988)
of the employees in different companies would perforce
differ. SMC is engaged in beer manufacturing; Magnolia FACTS:
with manufacturing and processing of dairy products; SM
Foods with production of feeds and processing of The National Federation of Labor (NFL) was
chicken. The nature of the products and sales of certified as the sole and exclusive bargaining
business may require diff. Skills which must necessarily representative of all the regular rank-and-file
be commensurated by different compensation packages; employees of New Pacific Timber & Supply Co., Inc.
different volumes of work and working conditions. It NFL started to negotiate for the employees in the
would then be best to have separate bargaining units for bargaining unit. However, the same was allegedly met
different companies where the employees can bargain with stiff resistance by petitioner Company, so that the
separately accdg. to their needs and working conditions. former was prompted to file a complaint for ULP on
the ground of refusal to bargain collectively.
Labor Arbiter: issued an order declaring (a)
SAMAHANG MANGGAGAWA SA TOP FORM herein petitioner Company guilty of ULP; and (b) the
MANUFACTURING UNITED WORKERS OF THE CBA proposals submitted by the NFL as the CBA
PHILS. (SMTFM-UWP) vs. NLRC (1998) between the regular rank-and-file employees in the
bargaining unit and petitioner Company.
FACTS: NLRC: dismissed the complaint for lack of merit.
A "Petition for Relief" was filed in behalf of 186 of
Petitioner Samahang Manggagawa sa Top Form the private respondents "Mariano J. Akilit and 350
was the certified collective bargaining representative others". In their petition, they claimed that they were
of all regular rank and file employees of private "wrongfully excluded from enjoying the benefits under
respondent Top Form Manufacturing Philippines, Inc. the CBA since the agreement with NFL and petitioner
At the subsequent collective bargaining Company limited the CBA's implementation to only the
negotiations, the union insisted on the incorporation 142 rank-and-file employees enumerated."
in the (CBA) of the union proposal on "automatic NLRC declared that the 186 excluded employees
across-the-board wage increase." "form part and parcel of the then existing rank-and-
There was a Wage Order granting an increase of file bargaining unit" and were, therefore, entitled to
P17.00 per day in the salary of workers. This was the benefits under the CBA.
followed by another Wage Order providing for a Petitioners argues that the private respondents are
P12.00 daily increase in salary. not entitled to the benefits under the CBA because
The union requested the implementation of said employees hired after the term of a CBA are not
wage orders. However, they demanded that the parties to the agreement, and therefore, may not
increase be on an across-the-board basis. claim benefits thereunder, even if they subsequently
Private respondent refused to accede to that become members of the bargaining unit.
demand. Instead, it implemented a scheme of As for the term of the CBA, petitioner maintains
increases purportedly to avoid wage distortion. that Article 253 of the Labor Code refers to the
The union, wrote private respondent a letter continuation in full force and effect of the previous
reiterated that it had agreed to "retain the old CBA's terms and conditions. By necessity, it could not
provision of CBA" on the strength of private possibly refers to terms and conditions which, as
respondent's "promise and assurance" of an across- expressly stipulated, ceased to have force and effect.
the-board salary increase should the government
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Labor Relations Cases villadolid digests
Issue: WON the private respondent are entitled to the may result in the deprivation of an employees means of
benefits under the CBA. livelihood which is a property right.
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Labor Relations Cases villadolid digests
paid administrative, technical, confidential and petitioner was certified as the sole and exclusive
supervisory employees of Triumph International. bargaining representative of all the regular rank-and-file
employees of Barbizon Philippines, Inc. (formerly
Issue: Whether or not the public respondent gravely Philippine Lingerie Corporation).
abused its discretion in ordering the immediate holding
of a certification election among the workers sought to BUKLOD was certified as the sole and exclusive
be represented by the respondent union. bargaining representative of all the rank-and-file
employees of Barbizon Phils (former PLC)
Held: While the CBA was still in force, several
Where the supervisory employees sought to be employees organized themselves into the
represetned by the union are actually NOT INVOLVED Nagkakaisang Supervisors Ng Barbizon Philippines,
in policy making, and their recommendatory powers are Inc. (NSBPI) and the Nagkakaisang Excluded
not even instantly effective since they are subject to Monthly Paid Employees Ng Barbizon, Philippines, Inc.
review by at least three (3) managers (dept. mgr., (NEMPEBPI) allegedly because they were excluded
personnel mgr. And general manager), then it is evident from the coverage of the existing CBA between
that these employees doe not possess managerial petitioner Barbizon and BUKLOD.
status. Petitioner Barbizon alleged that the petitions for
certification election filed by the Nagkakaisang
The fact that their work designations are either Supervisor ng Barbizon Philippines, Inc. NAFLU
managerial or supervisory is of no moment, (NSBPI) must necessarily fail because the employees
considering that it is the nature of their functions designated as "supervisors" cannot legally form a
and NOT SAID NOMENCLATURES which determines supervisors' union. Being part of the rank and file,
their respective status. petitioner avers that said employees belong to the
"employer wide unit," which is the appropriate
bargaining unit of all its rank and file employees and
A careful examination of the records of this case reveals
which is represented by the BUKLOD.
no evidence that rules out the commonality or
The Secretary of Labor granted the petition for
community of interest among the rank-and-file members
certification election filed by NSBPI
of the petitioners, and the herein declared rank-and-file
members of the respondent union. Instead of forming
ISSUE: Whether the Undersecretary of Labor committed
another bargaining unit, the law requires them to be
grave abuse of discretion in granting NSBPI's petition for
members of the existing one. The ends of unionism
certification election
are better served if all the rank-and-file members
with substantially the same interests and who
HELD: YES
invoke their right to self-organization are part of a
It has been the policy of the BLR to encourage the
single unit so they can deal with their ER with
formation of an employer unit unless circumstances
JUST ONE AND YET POTENT VOICE. The Ees
otherwise require. In other words, one employer
bargaining power with management is
enterprise constitutes only one bargaining unit. The more
strengthened thereby.
solid the employees are, the stronger is their bargaining
capacity.
In the case at bar, there is no dispute that the petitioner
is the exclusive bargaining representative of the rank- However, the "one union one company" rule is not
and-file employees of Triumph International. without exception. The exclusion of the subject employees
from the rank-and-file bargaining unit and the CBA is
indefinitely a "compelling reason" for it completely
BARBIZON PHILS INC. vs. NAGKAKAISANG deprived them of the chance to bargain collectively with
SUPERVISOR NG BARBIZON PHILS (1996) petitioner and are thus left with no recourse but to group
themselves into a separate and distinct bargaining unit
FACTS: and form their own organization.
Petitioner Phil. Lingerie Corp. (now Barbizon The usual exception, of course, is where the employer unit
Philippines Inc.) filed a petition for certification has to give way to the other units like the craft unit, plant
election among its rank-and-file employees. As a unit, or a subdivision thereof; the recognition of these
consequence thereof, 2 unions sought recognition: exceptions takes into accountant the policy to assure
(1) PHILIPPINE LINGERIE WORKERS UNION-ALAB employees of the fullest freedom in exercising their rights.
and Otherwise stated, the one company-one union policy must
(2) BUKLOD NG MANGGAGAWA NG PHILIPPINE yield to the right of the employees to form unions or
LINGERIE CORPORATION associations for purposes not contrary to law, to self-
PLW Union moved for the exclusion of a number organization and to enter into collective bargaining
of employees who were allegedly holding negotiations, among others, which the Constitution
supervisory positions. guarantees.
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built and set up by Acrylic should be considered as and file workers of Dacongcogon.
an extension or expansion of the facilities of Respondent NSFW moved to dismiss the petition
respondent Company. In other words, it is the on the grounds that the petition was filed out of time
petitioner's contention that Acrylic is part of the and that there is a deadlocked of CBA negotiation
Indophil bargaining unit; that the creation of the
Indophil Acrylic is a device of respondent Indophil Med-Arbiter: denied the Motion to Dismiss and direct the
Textile to evade the application of the CBA between conduct of a certification election among rank-and-file
the union and the company to Acrylic people. employees
On the other hand, respondent Indophil Textile BLR: set aside the order of the Med-Arbiter and ruled in
submits that it is a juridical entity separate and favor of respondent
distinct from Acrylic and cited the case of Diatagon
Labor Federations vs. Ople, which ruled that 2 Issue: Whether the BLR committed grave abuse of
corporations cannot be treated as single bargaining discretion?
unit even if their business are related.
Held: NO. Petition Denied.
Voluntary Arbitrator: ruled in favor of the respondent The Deadlock Bar Rule simply provides that a petition for
and found that the provision in the CBA between certification election can only be entertained if there is no
Indophil Textile Inc. and Indophil Textile Union does not pending bargaining deadlock submitted to conciliation or
extend to the employees of Indophil Acrylic Corp arbitration or had become the subject of a valid notice of
strike or lockout. The principal purpose is to ensure
Issue: Whether the voluntary arbitrator committed stability in the relationship of the workers and the
grave abuse of discretion in failing to disregard the management.
corporate entity of Indophil Acrylic
It is a rule in this jurisdiction that only a certified CBA
Held: NO i.e., an agreement duly certified by the BLR may serve as
Acrylic Indophil Corporation cannot be considered an a bar to certification elections.
extension of Indophil Corporation, as to cover in one
bargaining unit all employees thereof. Note separate This rule simply provides that a petition for certification
corporate entities: doctrine of piercing the veil of election or a motion for intervention can only be
corporate entity not applied. entertained within sixty days prior to the expiry date of an
existing collective bargaining agreement. Otherwise put,
The fact that the businesses of private respondent and the rule prohibits the filing of a petition for certification
Acrylic are related, that some of the employees of the election during the existence of a CBA except within the
private respondent are the same persons manning and freedom period, as it is called, when the said agreement is
providing for auxilliary services to the units of Acrylic, about to expire. The purpose, obviously, is to ensure
and that the physical plants, offices and facilities are stability in the relationships of the workers and the
situated in the same compound, it is our considered management by preventing frequent modifications of any
opinion that these facts are not sufficient to justify the CBA earlier entered into by them in good faith and for the
piercing of the corporate veil of Acrylic. stipulated original period.
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involved is defective as it was not duly submitted in There is a deadlock when there is a complete blocking or
accordance with the Implementing Rules. xxx There is stoppage resulting from the action of equal and opposed
no proof tending to show that the CBA has been posted forces . . . . The word is synonymous with the word
in at least 2 conspicuous places in the establishment at impasse, which . . "presupposes reasonable effort at good
least 5 days before its ratification and that it has been faith bargaining which, despite noble intentions, does not
ratified by the majority of the employees in the conclude in agreement between the parties."
bargaining unit. While it is true that, in the case at bench, one year had
lapsed since the time of declaration of a final certification
Issue: Whether the contract-bar rule is applicable in this result, and that there is no collective bargaining deadlock,
case? public respondent did not commit grave abuse of
discretion when it ruled in respondent union's favor since
HELD: NO the delay in the forging of the CBA could not be attributed
Wind no reversible error in the challenged decision of to the fault of the latter.
respondent director. A careful consideration of the facts
culled from the records of this case, yields the conclusion If the law proscribes the conduct of a certification election
that the collective bargaining agreement in question is when there is a bargaining deadlock submitted to
indeed defective hence unproductive of the legal effects conciliation or arbitration, with more reason should it not
attributed to it by the former director in his decision be conducted if, despite attempts to bring an employer to
which was subsequently and properly reversed. the negotiation table by the "no reasonable effort in good
faith" on the employer certified bargaining agent, there
To be a bar to a certification election, the CBA must be was to bargain collectively. It is only just and equitable
adequate in that it comprise substantial terms and that the circumstances in this case should be considered
conditions of employment as similar in nature to a "bargaining deadlock" when no
certification election could be held.
FACTS: FACTS:
Respondent CMC Employees Assoc.-Alliance of National Federation of Labor Union (NAFLU) was
Filipino Workers filed a petition for certification declared by the BLR the exclusive bargaining agent of
election among the rank-and-file employees of the all rank-and-file employees of Viron Garments
Capitol Medical Center (CMC). After the election, More than 4 years after, another union, KAMPIL-
respondent union was held as the sole and exclusive Katipunan, filed with the BLR a petition for
bargaining representative of the rank and file certification election with the support of more than
employees at CMC. 30% of the workers VIRON.
Respondent Union invited the CMC to the Despite NAFLUs opposition, the Med-Arbiter
bargaining table by submitting its economic proposal ordered the holding of a certification election, citing
for a CBA. However, CMC refused to negotiate and the fact that since the certification of NAFLU in 1981
instead challenged the unions legal personality as the sole bargaining agent, no CBA has been
through a petition for cancellation of the certificate concluded.
of registration. Respondent union was left with no NAFLU appealed, contending that at the time the
other recourse but to file a notice of strike against petition for certification election was filed, it was in the
CMC for ULP. This eventually led to a strike. process of collective bargaining with VIRON; that in
In the meantime, petitioner Capitol Medical fact a deadlock in negotiations prompted it to file a
Center Employees-Unified Filipino Service Workers notice of strike; that these circumstances barred a
filed a petition for certification election among the petition for certification election, pursuant to the Rules
rank-and-file employees of the CMC. It alleged in its Implementing the Labor Code.
petition that a certification election can now be
conducted as more that 12 months have lapsed since BLR: upheld NAFLUs contentions and dismissed the
the last certification election was held and that no petition for certification election.
CBA was executed before.
Respondent union opposed the petition and Issue: Whether KAMPILs petition for certification election
moved for its dismissal. It contended that it is the is barred by the alleged bargaining deadlock between
certified bargaining agent of the rank-and-file NAFLU and VIRON
employees of the CMC Hospital. HELD: NO
Petitioner claims that since there is no evidence For a bargaining deadlock to bar a petition for certification
on record that there exists a CBA deadlock, the law election, such deadlock must have been submitted to
allowing the conduct of a certification election after conciliation or arbitration, or must have been the subject
twelve months must be given effect in the interest of of a valid strike or lockout notice before not after the
the right of the workers to freely choose their sole filing of the petition for certification election.
and exclusive bargaining agent
The records do not show that there was a bargaining
The Secretary of Labor: dismissed the petition for deadlock prior to the filing of the petition for certification
certification election and directed CMC to negotiate a election. When NAFLU was proclaimed the exclusive
CBA with respondent union bargaining representative of all VIRON employees up to
when KAMPIL filed its petition for certification election or a
Issue: Whether there is a bargaining deadlock between period of more than four (4) years, no collective
CMC and respondent union, before the filing of petitioner bargaining agreement was ever executed, and no deadlock
of a petition for certification election ever arose from negotiations between NAFLU and VIRON
resulting in conciliation proceedings or the filing of a valid
HELD: NONE strike notice. In the case, the strikes and submission to
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compulsory arbitration took place after the filing of the The ballots provided for 2 choices: (a) TUPAS; (b)
petition for certification election TUEU-OLALIA; and (c) NO UNION.
The challenged votes were those cast by the 141
INK members. They were segregated and excluded
LA SUERTE CIGAR & CIGARETTE FACTORY vs. from the final count because the competing unions
DIRECTOR OF THE BLR (1983) agreed earlier that the INK members should not be
allowed to vote because they are not members of any
FACTS: union and refused to participate in the previous
certification election.
The La Suerte Cigar and Cigarette Factory The INK employees protested the exclusion of
Provincial and Metro Manila Sales Force Association their votes. They filed a petition to cancel the election
applied for and was granted chapter status by the alleging that it was not fair and the result thereof did
National Association of Trade Unions (NATU) not reflect the true sentiments of the majority of the
Sometime later, 31 local union members signed employees.
a joint letter withdrawing their membership in NATU. TUEU-OLALIA opposed the petition. It contended
The local union and NATU filed a petition for that petitioners do not have legal personality to
certification election. protest the results of the election because they are not
The company opposed on the ground that it was members of either the contending unions, but of the
not supported by at least 30% (now 25%) of the INK which prohibits its followers to, on religious
proposed bargaining unit because (a) of the alleged grounds, from joining or forming any labor
48 members of the local union, 31 had withdrawn organization.
prior to the filing of the petition, and (b) 14 of the
alleged members of the union were not employees of Med-Arbiter: seeing no merit in the INK employees
the company but were independent contractors. The petition, certified the TUEU-OLALIA as the sole and
BLR director denied the companys objection exclusive bargaining agent of the rank-and-file employees.
BLR: denied the appeal of the petitioner
Issue: Whether the withdrawal of 31 unions from NATU
affected the petition for certification election insofar as Issue: Whether the INK members may vote in the
the 30% requirement is concerned certification election
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Protests filed by the company and three other was paid on a daily basis through petty cash vouchers.
unions against the results of the election on the After more than 1 year of service, De Leon
ground that the certification election was marred by requested to be included in the payroll of regular
massive fraud and irregularities because number of workers. Companys response was to dismiss him from
employees were not able to cast their votes because his employment. De Leon demanded reinstatement
they were not properly notified of the date but company refused repeatedly.
De Leon filed a complaint for illegal dismissal,
Labor Secretary: denied the petition to annul the reinstatement & payment of backwages
election and instead certified petitioner NFL as the sole LA: found for De Leon & declared the dismissal as
and exclusive bargaining representative of the rank-and- illegal. He ruled that De Leon was not a mere casual
file employees of private respondent HPI. employee but a regular employee.
NLRC: reversed LA. MR denied. Hence, this
However, on motion of HPI, the Secretary of appeal.
Labor, reversed his resolution. NFLs MR was denied.
Hence, this petition ISSUE: WON De Leon was mere casual employee
Held: NO, reversal of the decision was erroneous
Issue: Whether the DOLE should not have given due
course to private respondent's petition for annulment of Under Art. 281 of the LC, the primary standard of
the results of the certification election. determining a regular employment is the reasonable
connection bet. the particular activity performed by the
HELD: employee in relation to the usual business or trade of the
The SC ruled in favor of the NFL. The workers in this employer. Also, if the employee has been performing the
case were denied this opportunity. Not only were a job for at least 1 year, even if the performance is not
substantial number of them disfranchised, there were, in continuous or merely intermittent, the law deems the
addition, allegations of fraud and other irregularities repeated & continuing need for its performance as
which put in question the integrity of the election. sufficient evidence for the necessity if not indispensability
Workers wrote letters and made complaints protesting of that activity to the business.
the conduct of the election. The Report of Med-Arbiter
Pura who investigated these allegations found the In this case, the records reveal that De Leons tasks
allegations of fraud and irregularities to be true. assigned to him included not only the painting of building
as claimed by the respondent but also cleaning & oiling
The SC invalidated the certification election upon a machines, even operating a drilling machine & other odd
showing of disfranchisement, lack of secrecy in the jobs.
voting and bribery. The workers' right to self- - A regular employee, Tanque, attested in his
organization as enshrined in both the Constitution and affidavit that De Leon worked w/ him as
Labor Code would be rendered nugatory if their right to maintenance man when there was no painting job.
choose their collective bargaining representative were
- In its comment, company confirmed the veracity
denied. Indeed, the policy of the Labor Code favors the
of De Leons claim when it admitted that he was
holding of a certification election as the most conclusive
occasionally instructed to do other odd things in
way of choosing the labor organization to represent
connection w/ the maintenance while he was
workers in a collective bargaining unit. In case of doubt,
waiting for materials he would need in his job or
the doubt should be resolved in favor of the holding of a
when he had finished early the one assigned to
certification election.
him
The law demands that the nature & entirety of the
activities performed by the employee be considered.
Furthermore, the petitioner performed his work of
painting & maintenance activities during his
employment which lasted for more than 1 year, until
early Jan., 1983 when he demanded to be regularized
but was dismissed.
The fact that he was rehired weeks after shows that
it can not be denied that his activities as regular
painter & maintenance man still exist.
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HELD: NO
The Court finds that the acts of the defendants were not
such as to disturb the public peace at the place. There was
no clear and present danger of destruction to life or
property or of other forms of breach of the peace.
FACTS:
Liwayway Publications, Inc. was the 2 nd sub-lessee of
the premises of the respondent Permanent Concrete
Products, Inc, in Manila
The EEs of Permanent Concrete declared a strike. For
unknown reason, they picketed, stopped and
prohibited Liwayways truck from entering the
compound to load newsprint from its bodega. The
union members also intimidated the and threatened to
harm the Liwayways EEs who were in the truck.
Liwayway filed an action for damages and injunction
against the union in the CFI Manila
CFI: issued preliminary injunction and award damages
to the ER.
The union contends that the CFI has no jurisdiction
over the case because the case arose out of labor
dispute and that their picketing is an extension of
freedom of speech guaranteed by the Constitution
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FACTS:
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Petitioner Company hired the private respondent Salazar contended that he was given appointments for
Luzviminda Petilla as clerk typist effective December specific project since 1974 up to 1984. Hence, he has
15, 1986 until January 16, 1987. The Co. gave her become a REGULAR EE and not a PROJECT EE who
an extension up to June 30, 1987. may be terminated only for a lawful cause.
On June 22, 1987 her services were terminated
without notice or investigation. Hence, she filed a Issue: Whether Salazar is considered a regular EE
complaint for illegal dismissal.
Petitioner Co. argues mainly that the private HELD: YES
respondent's appointment was TEMPORARY and A non-project EE is entitled to regular employment if he
hence she may be terminated at will. has rendered service for more than 10 years. As such he
can not be terminated unless for just cause.
Issue: Whether the dismissal is valid?
There are 3 types of non-project employees;
HELD: NO 1. Probationary; 2. Regular; and 3. Casual
An employment may only be said to be TEMPORARY
where it has been fixed for a specific undertaking the Based on the action form filed by the petitioner he is
completion and the nature of services to be performed is considered as probationary who after 6 months have
SESONAL and the employment is for the duration of the achieve a regular status.
season.
FACTS: FACTS:
Petitioner Eugenio De Jesus, was a carpenter for the Respondent Doroteo R. Alegre was engaged as athletic
respondent Philippine National Construction director by Brent School, Inc. for a fixed and specific
Corporation. While on duty, he vomited blood and term of five (5) years,
was treated at the Company clinic. After 3months, Subsequent subsidiary agreements reiterated the
he reported back, but he was no longer accepted. same terms and conditions, including the expiry date,
De Jesus filed a complaint for reinstatement with as those contained in the original contract.
backwages and payment legal benefits. 3 months before the expiration of the stipulated
The Company contended that De Jesus was hired as period, Alegre was terminated on the ground of
a PROJECT EMPLOYEE and his separation was due to
the completion of the project.
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TERMINATION OF EMPLOYMENT:
Consequences of Termination
FACTS:
Petitioner Cruz had been an ER of PLDT for 16 years
as an installer/repairman when he was terminated.
It appears that sometime in August 1985, Cruz and
co-repairman Moldera was instructed to repair
installations located at 325 Acacia Lane, Mandaluyong.
According to PLDT, the telephone numbers installed on
the said address were actually reinstalled and
functioning at 323 Acacia Lane, Mandaluyong. This
out-move of the telephone was considered illegal by
the company there being no service order. Hence,
Cruz was dismissed on the ground of fraud and serious
misconduct.
Both LA and NLRC arrived at the conclusion that said
EE should be dismissed although with financial
assistance (10K). This was questioned by the PLDT
HELD: YES
The dismissal of Cruz was valid. PLDT complied with
procedural due process prior to termination of Cruz for
violation of company rules involving what can be
considered fraud and dishonesty.
FACTS:
Private respondents were all employed as teachers on
probationary basis by petitioner Pines City
Educational Center.
Said teachers signed contracts of employment with
petitioner for a fixed duration. Due to the expiration of
the contracts and their poor performance as teachers,
they were notified of not to renew their contracts
anymore.
The teachers filed a complaint for illegal dismissal
LA: ruled in favor of the teachers and ordered their
reinstatement and to pay their full backwages and
other benefits and privileges without qualification and
deduction from the time they were dismissed up to
their actual reinstatement.
NLRC: affirmed the LA
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his unjust dismissal to actual reinstatement should be with the penalty higher than suspension of fifteen (15)
deducted from such backwages. When the law does not days and the erring employee requests for an
provide, the court shall not improvise. investigation of the incident. Wenphil alleges that
Mallare did not ask for investigation, hence waived his
The order for their reinstatement and payment of full right to the investigation.
backwages and other benefits and privileges from the
time they were dismissed up to their actual Issue: Whether Mallare was denied due process, hence
reinstatement is proper, conformably with Article 279 of entitled to indemnity
the Labor Code, as amended by RA 6715 which took
effect on March 21, 1989. HELD: YES
The contention of Wenphil is untenable.
HOWEVER, in ascertaining the total amount of
backwages payable to them, we go back to the rule prior In the CAB, Mallare received an official notice of his
to the Mercury Drug rule that the total amount derived termination 4 days later after he was dismissed. His
from employment elsewhere by the employee from the refusal to explain his side cannot be considered as a
date of dismissal up to the date of reinstatement, if any, waiver of his right to an investigation. Although in the
should be deducted therefrom. We restate the Personnel Manual, it states that an erring employee must
underlying reason that employees should not be request for an investigation it does not thereby mean that
permitted to enrich themselves at the expense of their the ER is thereby relieved of the duty to conduct an
employer. To this extend, our ruling in Alex Ferrer, et al. investigation before dismissing its EE.
vs. NLRC is hereby modified.
The failure of petitioner to give private respondent the
BUSTAMANTE vs. NLRC (1996) benefit of a hearing before he was dismissed constitutes
an infringement of his constitutional right to due process
Pines City Ruling Abandoned of law and equal protection of the laws.
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We do not agree with the ruling of the NLRC that Applying this to the case at bar, we hold that the amount
indemnity is incompatible with the award of backwages. of separation pay which respondent members of the Lubat
These two awards are based on different considerations. and Luris groups should receive is one-half () their
Backwages are granted on grounds of equity to workers respective average
for earnings lost due to their illegal dismissal from work. monthly pay during the last season they worked multiplied
On the other hand, the award of indemnity is meant to by the number of years they actually rendered service,
vindicate or recognize the right of an employee to due provided that they worked for at least six months during a
process which has been violated by the employer. given year.
In the CAB, the ER failed to comply with the provisions The formula that petitioner company proposes, wherein a
of Article 283 of the Labor Code which requires an year of work is equivalent to actual rendered for 303 days,
employer to serve a notice of dismissal upon the is both unfair and inapplicable, considering that Articles
employees sought to be terminated and to the 283 and 284 provide that in connection with separation
Department of Labor, at least one month before the pay, a fraction of at least six months shall be considered
intended date of termination. Hence, it is liable to pay one whole year. Under these provisions, an employee who
indemnity to petitioners. Thus, we find that the NLRC worked for only six months in a given year which is
committed grave abuse of discretion in deleting the certainly less than 303 days is considered to have
award of indemnity. worked for one whole year.
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equivalent to one (1) month's salary for every year of RTC: finds in favor of Brion and ordered SDA to pay
service, in addition to the backwages. the retirement benefits
CA: reversed RTC and ordered the dismissal of Brions
complaint.
HYATT TAXI SERVICES vs. CATINOY (2001)
Issue: Whether Brion is entitled to retirement benefits
FACTS: HELD: YES. We find for petitioner.
2 union officers, Catinoy and Saturnino, had a fight
inside the union office, an act that violates company Retirement has been defined as a withdrawal from office,
rules and union by-laws. The union executive board public station, business, occupation, or public duty. It is
decided to place them on indefinite suspension and the result of a bilateral act of the parties, a voluntary
requested the company, Hyatt Taxi Services Inc., to agreement between the employer and the employee
implement it. The company place the 2 on whereby the latter, after reaching a certain age, agrees
preventive suspension for 30 days and/or consents to sever his employment with the former.
Catinoy, aggrieved by the preventive suspension In this connection, the modern socio-economic climate has
since he was not the aggressor, filed a complaint for fostered the practice of setting up pension and retirement
illegal suspension. After the lapse of 30 days, he plans for private employees, initially through their
reported to work but was not allowed to resume his voluntary adoption by employers, and lately, established
duties. He amended his complaint to include by legislation. Pension schemes, while initially
constructive dismissal humanitarian in nature, now concomitantly serve to secure
LA: found the Hyatt taxi to be guilty of illegal loyalty and efficiency on the part of employees, and to
preventive suspension and illegal constructive increase continuity of service and decrease the labor
dismissal turnover by giving to the employees some assurance of
Hyatt and the union appealed to the NLRC security as they approach and reach the age at which
NLRC: affirmed LA.. HOWEVER, upon MFR, the NLRC earning ability and earnings are materially impaired or at
deleted the award of backwages because there was an end.
no concrete showing that the complainant was
constructively dismissed Art. 287. Retirement. Any employee may be retired
CA: reinstated the LAs decision upon reaching the retirement age established in the
collective bargaining agreement or other applicable
Issue: Whether the private respondent was employment contract.
constructively dismissed In case of retirement, the employee shall be entitled to
receive such retirement benefits as he may have earned
HELD: YES. CA affirmed. under existing laws and any collective bargaining
Preventive suspension beyond 30 days amounts to agreement and other agreements
constructive dismissal. It shows that respondent was not
taken back by petitioner Hyatt after the 30-day From the above, it can be gleaned that employer and
suspension period. Clearly, constructive dismissal had employee are free to stipulate on retirement benefits, as
already set in when the suspension went beyond the long as these do not fall below the floor limits provided by
maximum period allowed by law. law.
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Respondent Minister of Labor ruled that the phaseout to have then already accrued. As Romeos complaint was
of the two departments was arbitrary and ordered filed not later than 3 months only after such rejection,
UE to pay all affected faculty members of the College there is no question that his action has prescribed,
Secretarial Education and the High School whatever prescriptive period is applied.
Department a separation pay. In addition to the
termination pay, the University is likewise directed to FULL BACKWAGES
pay retirement benefits to all affected faculty - wages from the time of illegal termination up to the actual
members who, in accordance with the collective reinstatement
bargaining agreement, are retireable prior to or at 1. Mercury Drug vs. NLRC
the time of the phase-out."
- 3 years pay without qualification and deduction
Petitioner arguesns that the award of separation pay
pursuant to the Termination Pay Law necessarily 2. Ferrer vs. NLRC
excludes retirement benefits. - wages from time of illegal dismissal to actual
reinstatement MINUS earnings elsewhere
Issue: Whether the Minister of Labor and Employment (earnings from the new job while case is
committed grave abuse of discretion in awarding both pending)
retirement benefits and separation pay to the faculty 3. Osmalik Bustamante vs. NLRC
members affected by the phase-out. - wages from the time of illegal dismissal up to
actual reinstatement without any deductions.
HELD: NO. We rule for the respondents.
Separation pay arising from a forced termination of
employment and benefits given as a contractual right
due to many years of faithful service are not necessarily
exclude each other.
FACTS:
Romeo Hughes, a bus driver, met an accident when
the bus he was driving was hit by a train. His ER
sued the railroad company. Romeo was absolved of
contributory negligence but suspended by his ER
Soon after the judgment was rendered against the
railroad company, he renewed his drivers license
and asked for reinstatement. But he was asked to
wait until the criminal case was decided.
When the criminal case was dismissed, he repeated
his request for reinstatement but it was ignored
Romeos lawyer made a formal demand in writing
but it was denied by the ER. Hence, Romeo filed a
formal complaint
Regional Director: dismissed the complaint on the
ground that it was filed beyond the prescriptive
period prescribe in Art. 291 counted from the date of
collision.
HELD: NO
Since a 'cause of action' requires, as essential elements,
not only a legal right of the plaintiff and a correlative
obligation of the defendant but also 'an act or omission
of the defendant in violation of said legal right,' the
cause of action does not accrue until the party obligated
refuses, expressly or impliedly, to comply with its duty.
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