Galaxie Steel Worker’s Union, et al (individual employees) v.

NLRC, Galaxie Steel Corp, and Ricardo

Cheng (October 17, 2006) Carpio-Morales

Facts:
1. Galaxie Steel Corp. is engaged in manufacturing of re-bars and steel billets for high-rise buildings.
2. It experienced serious business losses from 1997-1999 amounting to P127M and decided to close
down its business.
3. Closure:
a. Galaxie filed written notice with DOLE of closure and termination of employees effective
Aug 31, 1999.
b. Posted the notice of closure on the corporate bulletin board.
4. Petitioners Union and employees filed complaint for ID, ULP and money claims.
a. ID: failed to comply with procedural requirements
b. ULP: closure followed after petition for certification election
5. LA decision: closure was valid; but ordered payment of sep pay, 13th month, and vacation and
sick credit leaves.
6. NLRC: upheld dismissal and reversed award of money claims; closure was valid due to serious
business losses. But, directed Galaxie to grant financial assistance equal to amout of those who
executed quitclaims.
7. CA: upheld.

Issue before SC:

WON Galaxie guilty of ULP for closing business operations shortly after the union filed petition for
certification election. (NO)

Other issues:
WON posting on company bulletin board was sufficient notice. (NO)
WON entitled to separation pay. (NO)

SC:
1. Lower courts unanimous in ruling that closure was due to serious financial losses. SC will not
modify such factual findings. No ULP.
a. Supported by audited financial statements showing losses
b. No evidence provided that closure was due to anti-union stance
c. The coinciding of petition for certification election and closure of business was
insufficient to comprise ULP.
2. Definition of ULP: Unfair labor practice refers to acts that violate the workers’ right to organize
and are defined in Articles 248 and 261 of the Labor Code. The prohibited acts relate to the
workers’ right to self-organization and to the observance of Collective Bargaining Agreement
without which relation the acts, no matter how unfair, are not deemed unfair labor practices.

Re Other Issues:
1. Denial of separation pay was valid since non-payment was allowed under LC for closure due to
serious financial losses.
2. However, mere posting of written notice of closure on the bulletin board was insufficient. Must
be individual notice to each employee. Compliance with substantive but with procedural
infirmity makes company liable for nominal damages (P20,000 awarded per worker).