Professional Documents
Culture Documents
Case No. 7
Case No. 7
Supreme Court
Manila
THIRD DIVISION
- versus -
PROGRESIBONG UNYON NG
MGA MANGGAGAWA SA AER,
ARNOLD VILLOTA, FELINO E.
AGUSTIN, RUPERTO M.
MARIANO II, EDUARDO S.
BRIZUELA, ARNOLD S.
RODRIGUEZ, RODOLFO MAINIT,
JR., FROILAN B. MADAMBA,
DANILO D. QUIBOY,
CHRISTOPHER R. NOLASCO,
ROGER V. BELATCHA, CLEOFAS
B. DELA BUENA, JR., HERMINIO
P. PAPA, WILLIAM A. RITUAL,
ROBERTO CALDEO, RAFAEL
GACAD, JAMES C. CAAMPUED,
ESPERIDION V. LOPEZ, JR.,
FRISCO M. LORENZO, JR.,
CRISANTO LUMBAO, JR., and
RENATO SARABUNO,
Respondents.
x---------------------------------------------x
- versus -
AUTOMOTIVE ENGINE
REBUILDERS, INC., and Promulgated:
ANTONIO T. INDUCIL,
Respondents. July 13, 2011
x -----------------------------------------------------------------------------------------------------x
DECISION
MENDOZA, J.:
Due to a dispute between the parties, both filed a complaint against each
other before the NLRC. AER accused the Unyon of illegal concerted activities
(illegal strike, illegal walkout, illegal stoppage, and unfair labor practice) while
Unyon accused AER of unfair labor practice, illegal suspension and illegal
dismissal.
Unyon’s Version
On January 8, 1999, the results of the drug test came out and the following
employees were found positive for illegal drugs: Froilan Madamba, Arnold
Rodriguez, Roberto Caldeo, Roger Bilatcha, Ruperto Mariano, Edwin Fabian, and
Nazario Madala.
Out of the seven (7) suspended employees, only Edwin Fabian and Nazario
Madala were allowed by AER to report back to work. The other five (5) suspended
employees were not admitted by AER without first submitting the required medical
certificate attesting to their fitness to work.
Meanwhile, Unyon found out that AER was moving out machines from the
main building to the AER-PSC compound located on another street. Sensing that
management was going to engage in a runaway shop, Unyon tried to prevent the
transfer of the machines which prompted AER to issue a memorandum accusing
those involved of gross insubordination, work stoppage and other offenses.
On February 2, 1999, the affected workers were denied entry into the AER
premises by order of management. Because of this, the affected workers staged a
picket in front of company premises hoping that management would accept them
back to work. When their picket proved futile, they filed a complaint for unfair
labor practice, illegal suspension and illegal dismissal.
The LA ruled, among others, that the concerned employees were suspended
from work without a valid cause and without due process. In finding that there was
illegal suspension, the LA held as follows:
This is illegal suspension plain and simple. Even if they were found
positive for drugs, they should have been caused to explain why they were
found so. It could have been that they have taken drugs as cure for ailment
under a physician’s prescription and supervision. Doubts should be in
favor of the working class in the absence of evidence that they are drug
addicts or they took prohibited or regulated drugs without any justifiable
reason at all. In fact, there is not even a showing by the company that the
performance of these employees was already adversely affected by their
use of drugs.
The LA further held that AER was guilty of illegal dismissal for refusing to
reinstate the five (5) employees unless they submit a medical certificate that they
were fit to work. Thus:
x x x Firstly, the employer has not even established that the five
employees are sick of ailments which are not curable within six months, a
burden which rests upon the employers and granting that they were sick or
drug addicts, the remedy is not dismissal but to allow them to be on sick
leave and be treated of their illness and if not cured within 6 months, that
is the time that they may be separated from employment but after
payment of ½ month’s salary for every year of service by way of separation
pay.[5]
Finally, the LA held that the concerned employees were not totally without
fault. The concerted slowdown of work that they conducted in protesting their
illegal suspension was generally illegal and unjustifiable. The LA, thus, ruled that
both parties were inpari delicto and, therefore, must suffer the consequences of the
wrong they committed.
NLRC Ruling
Both parties filed their respective appeals with the NLRC. The concerned
employees argued that the LA erred in 1) not awarding backwages to them during
the period of their suspension; 2) not holding that AER is guilty of unfair labor
practice; and 3) not holding that they were illegally dismissed from their
jobs.[6] AER, on the other hand, claimed that the LA erred in finding that there was
illegal dismissal and in ordering the reinstatement of the concerned employees
without backwages.[7]
On March 5, 2002, the NLRC issued a Resolution[8] modifying the LA
decision by setting aside the order of reinstatement as it found no illegal dismissal.
The NLRC, however, considered only three (3) out of the eighteen
concerned employees, (18) namely: Froilan Madamba, Ruperto Mariano, and
Roberto Caldeo because their names were commonly identified in the LA decision
and in the concerned employees’ position paper as those employees who were
allegedly illegally suspended.
It wrote that these three (3) employees were validly suspended because they
were found positive for illegal drugs in the drug test conducted by AER.
Management was just exercising its management prerogative in requiring them to
submit a medical fit-to-work certificate before they could be admitted back to
work. The drug test was found to be not discriminatory because all employees of
AER were required to undergo the drug test. Neither was the drug test related to
any union activity.
Finally, the NLRC ruled that the concerned employees had no valid basis in
conducting a strike. Considering that the concerted activity was illegal, AER had
the right to immediately dismiss them.
ARGUMENTS
PUBLIC RESPONDENT ACTED WITH GRAVE ABUSE OF DISCRETION IN
HOLDING THAT THERE ARE ONLY THREE (3) REMAINING
COMPLAINANTS IN THE CASE FILED BY THE PETITIONERS.
The CA Ruling
SO ORDERED.[10]
The CA, however, agreed with the NLRC on the legality and validity of the
suspension. The CA wrote:
The complainants who tested positive for illegal drugs were validly
suspended under the company rules. The Employee’s Handbook of
Company Rules and Regulations prohibit employees from reporting for
work under the influence of intoxicating liquor and drugs.
With the finding that the petitioners tested positive for illegal drugs,
AER merely exercised their management prerogative to require a medical
certificate that said employees were already fit to work before they can be
admitted back to work.
The CA further ruled that both parties were guilty of unfair labor practice. It
stated that the hostile attitude of AER towards its workers and vice-versa started
when the workers began organizing themselves into a union. AER tried to have a
runaway shop when it transferred some of its machinery from the main building to
the AER-PSC office located on another street on the pretext that the main building
was undergoing renovation. AER also prevented its employees, even those who
were excluded from its complaint, from going back to work for allegedly staging
an illegal strike. On the other hand, the concerted work slowdown staged by the
concerned employees as a result of their alleged illegal suspension was unjustified.
Hence, both parties were found by the CA to bein pari delicto and must bear the
consequences of their own wrongdoing.
SO ORDERED.[12]
GROUNDS
FOR UNYON:
FOR AER:
AER’s Position
AER argues that the reinstatement of those employees who tested positive
for drugs and refused to submit their respective medical certificate certifying that
they were fit to work, violated AER’s rules and regulations, and the law in general
because it would allow the sheltering of drug addicts in company premises.
AER likewise insists that the drug test that it conducted was not related to
any union activity because the test covered all employees. The drug test was part of
company rules and guidelines designed to instill discipline and good behavior
among its employees as contained in its Employees Manual Company Rules and
Regulations. AER also claims that it simply exercised its employer’s prerogative in
requiring a medical certificate from the affected employees.
Finally, AER avers that the complaining employees, who did not report back
to work despite their medical certificate attesting that they were fit to work,
committed willful disobedience. AER claims that the complaining employees
violated their agreement with the DOLE-National Conciliation and Mediation
Board (NCMB) dated January 25, 1999. AER likewise contends that
the complaining employees are deemed to have lost their employment status when
they engaged in unlawful activities such as abandonment of work, stoppage of
work and the commission of attempted theft involving its boring machine. Hence,
the termination of their employment was valid.
Unyon’s Position
Unyon argues that the complaint it filed indicated that there were 32
complainants who signed the complaint. Out of the 32, six (6) executed waivers
and quitclaims leaving 26 complainants, not 3 as claimed by AER.
Unyon likewise avers that the dismissal of the affected employees was
unlawful for lack of valid ground and prior notice. Although it admits that some of
the complainant employees tested positive for drugs, it posits that AER should
have, at least, required those affected employees to explain why they tested
positive for drugs because it could be possible that the drug taken was a regulated
drug for an ailment and prescribed by a doctor. Therefore, prior notice or due
process was still necessary.
Unyon further asserts that the penalty for testing positive for illegal drugs
was only a 15-day suspension, which was already served by the affected
employees. It also points out that AER never imposed the policy of drug
examination on its employees before the union was organized. Clearly, AER
adopted a hostile attitude towards the workers when they organized themselves
into a union.
Lastly, Unyon claims that the penalty of outright dismissal against the
eighteen (18) employees charged with illegal strike was grossly disproportionate to
their offense.
G.R. 160192
Unyon’s Position
Unyon basically argues that there was enough proof that AER acted in bad
faith and it was guilty of illegal lock-out for preventing the affected employees
from going back to work. Hence, the complaining employees are entitled to
backwages.
AER’s Position
AER counters that there are only three (3) remaining complaining employees
who were validly suspended, namely: Froilan Madamba, Ruperto Mariano and
Roberto Caldeo. AER claims that these employees are not entitled to backwages or
even reinstatement because their separation from work was valid due to their
unlawful activities and willful disobedience. AER further states that Unyon failed
to properly file a verified position paper. Hence, the complaining employees who
failed to file a verified position paper should be excluded from the petition.
The Court agrees with the ruling of the CA that there were 32 complaining
employees who filed and signed their complaint dated February 18, 1999 for unfair
labor practice, illegal dismissal and illegal suspension.[13] Out of the 32, six (6)
undeniably resigned and signed waivers and quitclaims, leaving 26 remaining
complainant employees. Thus, the Court adopts and affirms the following CA
ruling on this matter:
This Court likewise affirms the ruling of the CA favoring the reinstatement
of all the complaining employees including those who tested positive for illegal
drugs, without backwages. The Court is in accord with the ruling of the LA and
the CA that neither party came to court with clean hands. Both were in pari
delicto.
It cannot be disputed that both parties filed charges against each other,
blaming the other party for violating labor laws. AER filed a complaint against
Unyon and its 18 members for illegal concerted activities. It likewise suspended 7
union members who tested positive for illegal drugs. On the other hand, Unyon
filed a countercharge accusing AER of unfair labor practice, illegal suspension and
illegal dismissal. In other words, AER claims that Unyon was guilty of staging an
illegal strike while Unyon claims that AER committed an illegal lockout.
AER’s fault is obvious from the fact that a day after the union filed a petition
for certification election before the DOLE, it hit back by requiring all its
employees to undergo a compulsory drug test. Although AER argues that the drug
test was applied to all its employees, it was silent as to whether the drug test was a
regular company policy and practice in their 35 years in the automotive engine
repair and rebuilding business. As the Court sees it, it was AER’s first ever drug
test of its employees immediately implemented after the workers manifested their
desire to organize themselves into a union. Indeed, the timing of the drug test was
suspicious.
Moreover, AER failed to show proof that the drug test conducted on its
employees was performed by an authorized drug testing center. It did not mention
how the tests were conducted and whether the proper procedure was employed.
The case ofNacague v. Sulpicio Lines,[15] is instructive:
Contrary to Sulpicio Lines’ allegation, Nacague was already
questioning the credibility of S.M. Lazo Clinic as early as the proceedings
before the Labor Arbiter. In fact, the Labor Arbiter declared that the S.M.
Lazo Clinic drug test result was doubtful since it is not under the
supervision of the Dangerous Drug Board.
The NLRC and the Court of Appeals ruled that Sulpicio Lines
validly terminated Nacague’s employment because he was found guilty of
using illegal drugs which constitutes serious misconduct and loss of trust
and confidence. However, we find that Sulpicio Lines failed to clearly
show that Nacague was guilty of using illegal drugs. We agree with the
Labor Arbiter that the lack of accreditation of S.M. Lazo Clinic made its
drug test results doubtful.
Section 36 of R.A. No. 9165 provides that drug tests shall be
performed only by authorized drug testing centers. Moreover, Section 36
also prescribes that drug testing shall consist of both the screening test and
the confirmatory test. Section 36 of R.A. No. 9165 reads:
Drug testing shall consist of both the screening test and the
confirmatory test; the latter to be carried out should the screening test turn
positive. The employee concerned must be informed of the test results
whether positive or negative.
As to the mechanics of the test, the law specifies that the procedure
shall employ two testing methods, i.e., the screening test and the
confirmatory test, doubtless to ensure as much as possible the
trustworthiness of the results. But the more important consideration lies in
the fact that the tests shall be conducted by trained professionals in access-
controlled laboratories monitored by the Department of Health (DOH) to
safeguard against results tampering and to ensure an accurate chain of
custody.
The law is clear that drug tests shall be performed only by
authorized drug testing centers. In this case, Sulpicio Lines failed to prove
that S.M. Lazo Clinic is an accredited drug testing center. Sulpicio Lines
did not even deny Nacague’s allegation that S.M. Lazo Clinic was not
accredited. Also, only a screening test was conducted to determine if
Nacague was guilty of using illegal drugs. Sulpicio Lines did not confirm
the positive result of the screening test with a confirmatory test. Sulpicio
Lines failed to indubitably prove that Nacague was guilty of using illegal
drugs amounting to serious misconduct and loss of trust and
confidence. Sulpicio Lines failed to clearly show that it had a valid and
legal cause for terminating Nacague’s employment. When the alleged valid
cause for the termination of employment is not clearly proven, as in this
case, the law considers the matter a case of illegal dismissal. (Emphases
supplied)
Regarding AER’s contention that the affected workers abandoned their jobs,
the Court has thoroughly reviewed the records and found no convincing proof that
they deliberately abandoned their jobs. Besides, this Court has consistently
declared in a myriad of labor cases that abandonment is totally inconsistent with
the immediate filing of a complaint for illegal dismissal.
In any event, the penalty of dismissal imposed by AER against the striking
employees, who, by the way, only staged a one day walkout, was too severe. The
pronouncement in the case of Tupas Local Chapter No. 979 v. NLRC[16] is worth
reiterating:
Neither respondent commission's decision nor the labor arbiter's
decision as affirmed with modification by it cites any substantial facts or
evidence to warrant the terribly harsh imposition of the capital penalty of
dismissal and forfeiture of employment on twenty-two of forty-four
workers for having staged the so-called one-day (more accurately, a one-
morning) "sitdown strike" on August 19, 1980 to inform respondent
employer of their having formed their own union and to present their just
requests for allowances, overtime pay and service incentive leave
pay. Prescinding from respondent commission's misappreciation of the
facts and evidence and accepting for the nonce its factual conclusion that
the petitioners staged a one-morning sit-down strike instead of making a
mass representation for the employer to recognize their newly formed
union and negotiate their demands, respondent commission's decision is
not in consonance with the constitutional injunction that the Court has
invariably invoked and applied to afford protection to labor and assure the
workers' rights to self-organization, collective bargaining, security of
tenure and just and humane conditions of work. The said decision
likewise is not in accordance with settled and authoritative doctrine and
legal principles that a mere finding of the illegality of a strike does not
automatically warrant a wholesale dismissal of the strikers from their
employment and that a premature or improvident strike should not be
visited with a consequence so severe as dismissal where a penalty less
punitive would suffice. Numerous precedents to this effect have been cited
and reaffirmed x x x.
x x x x.
It must also be noted that there were no injuries during the brief walkout.
Neither was there proof that the striking workers inflicted harm or violence upon
the other employees. In fact, the Police Memorandum[18] dated January 29,
1999 reported no violent incidents and stated that all parties involved in
the January 28, 1999 incident were allowed to go home and the employees
involved were just given a stern warning.
Like management, the union and the affected workers were also at fault for
resorting to a concerted work slowdown and walking out of their jobs of protest for
their illegal suspension. It was also wrong for them to have forced their way to the
AER-PSC premises to try to bring out the boring machine. The photos[19] shown by
AER are enough proof that the picketing employees prevented the entry and exit of
non-participating employees and possibly AER’s clients. Although the union’s
sudden work stoppage lasted a day, it surely caused serious disturbance and tension
within AER’s premises and could have adversely affected AER’s clients and
business in general.
The in pari delicto doctrine in labor cases is not novel to us. It has been
applied in the case of Philippines Inter-Fashion, Inc. v NLRC,[20] where the Court
held:
The Court approves the stand taken by the Solicitor General that
there was no clear and unequivocal waiver on the part of petitioner and on
the contrary the record shows that it tenaciously pursued its application
for their dismissal, but nevertheless in view of the undisputed findings of
illegal strike on the part of the 114 employees and illegal lockout on
petitioner's part, both parties are in pari delicto and such situation warrants
the restoration of the status quo ante and bringing the parties back to the
respective positions before the illegal strike and illegal lockout through the
reinstatement of the said 114 employees, as follows:
Likewise, the in pari delicto doctrine was applied in the case of First City
Interlink Transportation Co. Inc. v The Honorable Secretary,[21] thus:
3) Petitioner substantially complied with the Return to Work Order.
The medical examination, NBI, Police and Barangay Clearances as well as
the driver's and conductor's/conductress licenses and photographs
required as conditions for reinstatement were reasonable management
prerogatives. However, the other requirements imposed as condition for
reinstatement were unreasonable considering that the employees were not
being hired for the first time, although the imposition of such
requirements did not amount to refusal on the part of the employer to
comply with the Return to Work Order or constitute illegal lockout so as to
warrant payment of backwages to the strikers. If at all, it is the employees'
refusal to return to work that may be deemed a refusal to comply with the
Return to Work Order resulting in loss of their employment status. As both
the employer and the employees were, in a sense, at fault or in pari
delicto, the nonreturning employees, provided they did not participate in
illegal acts; should be considered entitled to reinstatement. But since
reinstatement is no longer feasible, they should be given separation pay
computed up to March 8, 1988 (the date set for the return of the employees)
in lieu of reinstatement. [Emphases and underscoring supplied]
In the case at bar, since both AER and the union are at fault or in pari
delicto, they should be restored to their respective positions prior to the illegal
strike and illegal lockout. Nonetheless, if reinstatement is no longer feasible, the
concerned employees should be given separation pay up to the date set for the
return of the complaining employees in lieu of reinstatement.
SO ORDERED.
WE CONCUR:
ANTONIO T. CARPIO
Associate Justice
ATTESTATION
I attest that the conclusions in the above Decision had been reached in
consultation before the case was assigned to the writer of the opinion of the
Court’s Division.
PRESBITERO J. VELASCO, JR.
Associate Justice
Chairperson, Third Division
CERTIFICATION
Pursuant to Section 13, Article VIII of the Constitution and the Division
Chairperson’s Attestation, I certify that the conclusions in the above Decision had
been reached in consultation before the case was assigned to the writer of the
opinion of the Court’s Division.
RENATO C. CORONA
Chief Justice
Designated as additional member in lieu of Associate Justice Diosdado M. Peralta per Special Order No. 1029
dated June 30, 2011.
Designated as additional member of the Third Division per Special Order No. 1028 dated June 21, 2011.
[1]
Rollo (G.R. No. 160138), pp. 49-50. Penned by Associate Justice Eliezer R. De Los Santos with Associate
Justice Romeo A. Brawner and Associate Justice Regalado E. Maambong, concurring.
[2]
Id. at 103-108.
[3]
Id. (G.R. No. 160192), pp. 69-73.
[4]
Id. at 71-72.
[5]
Id. at 72-73.
[6]
Id. at 74-79.
[7]
Id. at. 80-92.
[8]
Id. at 93-100.
[9]
Id. at 24-32.
[10]
Id. at 31-32.
[11]
Id. at 29-30.
[12]
Id. at 34.
[13]
Id. at 115-120.
[14]
Section 6, Rule 3, Revised Rules of Court.
[15]
G.R. No. 172589, August 8, 2010, 627 SCRA 254.
[16]
224 Phil. 26 (1985).
[18]
Rollo (G.R. No. 160138), pp. 51-52.
[19]
Id. at 62-63.
[20]
203 Phil. 23 (1982).
[21]
338 Phil. 635 (1997).