Kiok%Loy%v.

%NLRC1%
Jan$22,$1986$|$Cuevas$J.$
By:$Justin$
$
SUMMARY:%Pambansang(Kilusang(Paggawa((UNION)(won(in(the(certification(election(as(
the(sole(and(exclusive(bargaining(agent(of(the(rank?and?file(employees(of(Sweden(Ice(
Cream(Plant((COMPANY).(The(Union(submitted(its(proposals(to(the(Company(and(
requested(for(its(counter?proposals,(but(the(company(ignored(the(requests.(The(case(was(
submitted(to(NLRC(for(compulsory(arbitration.(While(the(case(was(in(NLRC,(the(Company(
asked(for(several(postponements(on(several(occasions.(One(day,(when(the(Company(
asked(for(another(postponement,(the(Labor(Arbiter(denied(the(request(and(considered(
the(case(submitted(for(resolution.(The(NLRC(declared(the(Company(guilty(of(unjustified(
refusal(to(bargain,(in(violation(of(Sec.((g)(Art.(248((now(249)(of(PD(442,(as(amended.(
(
In(deciding(whether(or(not(the(company(is(guilty(of(unjustified(refusal(to(bargain,(the(
court(took(into(consideration(its(attitude(and(over?all(acts(throughout(the(bargaining(
process.(The(Court(ruled(that(the(Union(has(a(valid(cause(to(complain(against(the(
companys(attitude(indicative(of(the(failure(to(follow(what(is(enjoined(by(the(Labor(Code(
(to(bargain(in(good(faith.Collective(bargaining,(which(is(defined(as(negotiations%
towards%a%collective%agreement,%is%one%of%the%democratic%frameworks%under%the%
New%Labor%Code,%designed%to%stabilize%the%relation%between%labor%and%management%
and%to%create%a%climate%of%sound%and%stable%industrial%peace.%It%is%a%mutual%
responsibility%of%the%employer%and%the%Union%and%is%characterized%as%a%legal%
obligation.%
(
In(this(case,(it(was(pointed(out(that(the(company(made(no(counter?proposal(whatsoever.(
The(companys(conduct(conclusively(indicates(lack(of(a(sincere(desire(to(negotiate.(As(
stated(in(Bradman(v(CIR:(While(the(law(does(not(compel(the(parties(to(reach(an(
agreement,(it(does(contemplate(that(both(parties(will(approach(the(negotiation(with(an(
open(mind(and(make(a(reasonable(effort(to(reach(a(common(ground(of(agreement.(The(
Company(is(guilty(and(its(petition(should(be(dismissed.((
(

(
FACTS:%
In(a(certification(election,(the(Pambansang(Kilusang(Paggawa((UNION)(
won(and(was(certified(by(the(Bureau(of(Labor(Relations(as(the(sole(and(
exclusive( bargaining( agent( of( the( rank?and?file( employees( of( Sweden(
Ice( Cream( Plant( (COMPANY).( The( Company( filed( an( MR( which( was(
denied.(
The( Union( furnished( the( Company( with( 2( copies( of( its( proposed(
bargaining(agreement(along(with(a(request(for(a(copy(of(the(Company's(
counter?proposals.( Eliciting( no( response( from( the( company,( however,(

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
1

!KIOK!LOY,!doing!business!under!the!name!and!style!SWEDEN!ICE!CREAM!PLANT,!
petitioner,!!
vs.!
NATIONAL!LABOR!RELATIONS!COMMISSION!(NLRC)!and!PAMBANSANG!KILUSAN!NG!
PAGGAWA!(KILUSAN),!

the( Union( reiterated( its( request( for( collective( bargaining( negotiations.(

These(2(requests(were(ignored(by(the(company.(
Seeing( no( other( alternative( to( bring( the( Company( to( the( bargaining(
table,( the( Union( filed( a( Notice( of( Strike( with( the( Bureau( of( Labor(
Relations( (BLR)( on( the( ground( of( unresolved( economic( issues( in(
collective(bargaining.((
During( the( 30?day( statutory( cooling?off( period,( conciliation(
proceedings(followed(but(an(amicable(settlement(was(not(reached.(BLR(
certified(to(the(case(to(NLRC(for(compulsory(arbitration(pursuant(to(PD(
823,(as(amended.((
April( 29,( 1979( ?( The( labor( arbiter( set( the( initial( hearing,( but( the( same(
was( cancelled( and( reset( to( another( date( for( failure( of( the( parties( to(
submit(their(respective(position(papers.((
The( Union( subsequently( submitted( its( position( paper.( On( the( other(
hand,( the( company,( instead( of( submitting( its( own( position( paper,(
requested(for(a(resetting(which(was(granted.((
The( case( was( further( reset( to( May( 11,( 1979( due( to( the( withdrawal( of(
the(Companys(counsel(of(record,(Atty.(Rodolfo(Dela(Cruz.((
o Atty.( Fortunanto( Panganiban( formally( entered( his( appearance(
as( counsel( and( requested( for( another( postponement( allegedly(
for( the( purpose( of( acquainting( himself( with( the( case.( The(
company(was(only(able(to(submit(its(position(paper(on(May(28,(
1979.((17(days(after(the(date(the(case(was(reset(to)(
June( 7,( 1979( ( the( case( was( called( for( hearing,( but( the( Companys(
representative,(Mr.(Ching,(who(was(supposed(to(be(examined,(failed(to(
appear.( Atty.( Panganiban( then( requested( for( another( postponement(
(Note:( this( is( the( 4th( time( the( Company( asked( the( court( for(
postponement)((
This(request(was(denied(by(the(labor(arbiter,(ruling(that(the(Company(
has( waived( its( right( to( present( further( evidence( and,( therefore,(
considered( the( case( submitted( for( resolution.( Labor( Arbiter( Andres(
Fidelino(submitted(its(report(to(the(NLRC.(
[NLRC](declared(Sweden(Ice(Cream(Plant(guilty(of(unjustified(refusal(to(
bargain,( in( violation( of( Sec.( (g)( Art.( 248( (now( 249)( of( PD( 442,( as(
amended.( Further,( the( NLRC( found( the( Unions( draft( proposal( for( a(
collective( bargaining( agreement( reasonable,( and( declared( the( same( to(
be( the( collective( agreement( which( should( govern( the( relationship(
between(the(parties.(
Sweden(Ice(Cream(Plant(filed(a(Petition(for(Certiorari(to(annul(the(NLRC(
decision.( SC( initially( dismissed( the( petition( for( lack( of( merit,( but( the(
same(was(given(due(course(upon(MR(by(the(Company.((

(
ISSUES/HELD:(
1.(WON%THE%COMPANY%IS%GUILTY%OF%UNFAIR%LABOR%PRACTICE.%(YES)%

(
L

(
L

Collective% bargaining,% which% is% defined% as% negotiations% towards% a%

collective% agreement,% is%one%of%the%democratic%frameworks%under%the%
New%Labor%Code,%designed%to%stabilize%the%relation%between%labor%and%
management% and% to% create% a% climate% of% sound% and% stable% industrial%
peace.%It%is%a%mutual%responsibility%of%the%employer%and%the%Union%and%
is%characterized%as%a%legal%obligation.%
o Art.( 249( (g)( of( the( Labor( Code( even( makes( it( an( unfair( labor(
practice( for( an( employer( to( refuse( to( meet( and( convene(
promptly( and( expeditiously( in( good( faith( for( the( purpose( of(
negotiating( an( agreement( with( respect( to( wages,( hours( of(
work,( and( all( other( terms( and( conditions( of( employment(
including( proposals( for( adjusting( any( grievance( or( question(
arising( under( such( an( agreement( and( executing( a( contract(
incorporating(such(agreement,(if(requested(by(either(party.(
Although(its(a(mutual(obligation(for(the(parties(to(bargain,(the(employer(is(
not( bound( to( initiate( contract( negotiation.( The( following( jurisdictional(
preconditions(need(to(be(present(in(order(to(set(the(mechanics(of(collective(
bargaining(in(motion:(
1) Possession( of( the( status( of( majority( representation( of( the(
employees'(representative(in(accordance(with(any(of(the(means(of(
selection(or(designation(provided(for(by(the(Labor(Code;(
2) proof(of(majority(representation;(
3) a(demand(to(bargain(under(Article(251,(par.((a)(of(the(New(Labor(
Code(
Taking(into(consideration(the(over?all(conduct(of(the(company(in(relation(to(
the( negotiation,( the( Union( has( a( valid( cause( to( complaint( against( the(
companys(attitude(indicative(of(the(failure(to(follow(what(is(enjoined(by(the(
Labor(Code((to(bargain(in(good(faith.((
In(this(case,(it(has(been(established(that;(
respondent(Union(was(a(duly(certified(bargaining(agent;((
it(made(a(definite(request(to(bargain,(accompanied(with(a(copy(of(
the( proposed( Collective( Bargaining( Agreement,( to( the( Company(
not(only(once(but(twice(which(were(left(unanswered(and(unacted(
upon;(and((
the( Company( made( no% counter% proposal% whatsoever,( all( of(
which(conclusively(indicate(lack(of(a(sincere(desire(to(negotiate(
Such(refusal(to(make(counter(proposal,(in(relation(to(the(entire(bargaining(
process,(may(indicate(bad(faith(and(this(is(especially(true(where(the(unions(
request(for(a(counter?proposal(is(left(unanswered.(Besides,(the(Companys(
approach( and( attitude( (stalling( through( a( series( of( postponements,( non?
appearance( at( hearings,( and( undue( delay( in( submitting( financial(
statements)( lead( to( no( other( conclusion( except( that( it( is( unwilling( to(
negotiate.((

[Herald( Deliver( Carriers( Union( (PAFLU)( v( Herald( Publications]:( "unfair(

labor(practice(is(committed(when(it(is(shown(that(the(respondent(employer,(
after( having( been( served( with( a( written( bargaining( proposal( by( the(
petitioning(Union,(did(not(even(bother(to(submit(an(answer(or(reply(to(the(
said(proposal.((
This(was(reiterated(anew(in([Bradman(v(CIR](wherein(it(was(further(ruled(
that:( "while( the( law( does( not( compel( the( parties( to( reach( an( agreement,( it(
does( contemplate( that( both( parties( will( approach( the( negotiation( with( an(
open( mind( and( make( a( reasonable( effort( to( reach( a( common( ground( of(
agreement(

(
2.(WON%THE%COMPANY%WAS%DENIED%PROCEDURAL%DUE%PROCESS.%(NO)%
(
L Companys( contention( that( it( was( denied( procedural( due( process( is(
bereft(of(any(legal(and(factual(support.(As(discussed(above,(the(moves(
and( overall( behavior( of( the( Company( were( in( total( derogation( of( the(
policy( enshrined( in( the( New( Labor( Code( which( is( aimed( towards(
expediting(settlement(of(economic(disputes.(
(
3.(WON%THE%CBA%APPROVED%BY%NLRC%IS%NULL%AND%VOID%(NO)%
(
L Company( contends( that( CBA( is( null( and( void( because:( 1)( it( lacks( the(
companys( consent( and;( 2)( the( company( will( face( the( prospect( of(
closing( down( since( it( has( to( pay( a( staggering( amount( of( economic(
benefits(
L Court( said:( Such( a( stand( and( the( evidence( in( support( thereof( should(
have( been( presented( before( the( Labor( Arbiter( which( is( the( proper(
forum(for(the(purpose.((
%
%
Courts(closing(remarks:(Although(its(not(obligatory(upon(either(side(to(
accept/agree(to(the(proposals(of(the(other,(an(erring(party(should(not(be(
tolerated(and(allowed(with(impunity(to(resort(to(schemes(feigning(negotiations(
by(going(through(empty(gestures.((
Dispositive:(PETITION(DISMISSED.((
(
(
(
(
(

TABIGUE%v.%INTERCO%
December'23,'2009'||'J.'Carpio'Morales'
By:'Rose'Ann'
!
SUMMARY:($
Tabigue$et$al$filed$a$notice$of$preventive$mediation$against$INTERCO.$The$parties$
failed$ to$ settle.$ It$ was$ elevated$ to$ Voluntary$ arbitration.$ However,$ INTERCO$
provided$ a$ letter$ by$ the$ union$ president$ stating$ that$ Tabigue$ et$ al$ are$ not$
authorized.$The$case$did$not$proceed$to$voluntary$arbitration$due$to$this.$CA$and$
SC$upheld$this.$The$petitioners$were$not$authorized$to$represent$the$union,$hence$
voluntary$arbitration$shall$not$prosper.$
$
DOCTRINE:$$
The$ parties$ to$ a$ CBA$ shall$ name$ or$ designate$ their$ respective$ representatives$ to$
the$ grievance$ machinery$ and$ if$ the$ grievance$ is$ unsettled$ in$ that$ level,$ it$ shall$
automatically$ be$ referred$ to$ the$ voluntary$ arbitrators$ designated$ in$ advance$ by$
parties$to$a$CBA.$$Consequently$only$disputes$involving$the$union$and$the$company$
shall$be$referred$to$the$grievance$machinery$or$voluntary$arbitrators.$
$
The$ right$ of$ any$ employee$ or$ group$ of$ employees$ to,$ at$ any$ time,$ present$
grievances$ to$ the$ employer$ does$ not$ imply$ the$ right$ to$ submit$ the$ same$ to$
voluntary$arbitration.$
%
FACTS:%(
Petitioners( Juanito( Tabigue( and( 19( employees( of( International( Copra( Export(
Corporation((INTERCO)(filed(a(Notice(of(Preventive(Mediation(with(the(DOLE
NCMB(against(INTERCO(for(violation(of(CBA(and(failure(to(sit(on(the(grievance(
conference/meeting.(
((
It( was( elevated( to( voluntary( arbitration( after( the( parties( failed( to( reach( a(
settlement.(NCMB(set(a(date(for(them(to(agree(on(a(Voluntary(Arbitrator.((
(
Before(they(could(meet,(INTERCO(presented(before(the(NCMB(a(letter(of(Genaro(
TAN,(president(of(the(INTERCO(Employees/Laborers(Union(which(Tabigue(et(al(
are(members.(
(
The(letter(addressed(to(plant(manager(Engr.(Paterno(C.(TANGENTE(stated(that(
Tabigue(et(al(are(not(duly(authorized(by(the(board(or(the(officers(to(represent(
the( union,( hence...( all( actions,( representations( or( agreements( made( by( these(
people(with(the(management(will(not(be(honored(or(recognized(by(the(union.(
(
INTERCO( moved( to( dismiss( the( complaint( for( lack( of( jurisdiction.( Petitioners(
sent( Tan( and( Tangente( a( Notice( to( Arbitrate.( No( settlement( reached.( NCMB(
Director( Teodorico( O.( Yosores( wrote( petitioner( Alex( Bibat( and( Tangente(
regarding( the( lack( of( willingness( of( both( parties( to( submit( to( voluntary(
arbitration,( which( is( a( pre?requisite( to( submit( the( case.( Under( the( CBA,( the(

union( is( an( indispensable( party( to( a( voluntary( arbitration.( Since( Tan( informed(
INTERCO( that( the( union( had( not( authorized( the( petitioners( to( represent( it,( it(
would(be(absurd(to(bring(the(case(to(voluntary(arbitration.(
(
The( NCMB( Director( concluded( that( the( demand( of( petitioners( to( submit( the(
issues(to(voluntary(arbitration(cannot(be(granted.(MR(denied.(
(
CA( denied( appeal( as( the( NCMB( is( not( a( quasi?judicial( agency( but( merely( a(
conciliatory(body.(The(NCMBs(decisions(or(that(of(its(authorized(officer(cannot(
be( appealed( either( through( Rule( 43( or( Rule( 65( of( the( ROC.( Other( infirmities(
were( noted( like( insufficient( docket( fees,( decision( of( NCMB( not( certified,( and(
incomplete( verification( and( non?forum( shopping.( CA( denied( MR.( Petition( for(
Review(on(Certiorari(with(SC.((
(
Petitioners:(((
The( case( falls( within( the( revised( procedural( guidelines( in( the( conduct( of(
voluntary(arbitration(proceedings.(NCMB(is(a(quasi?judicial(agency.(Its(decisions(
are(appealable(to(the(CA.(Labor(cases(are(not(resolved(by(technicalities.(
((
ISSUE%%
WON(the(case(can(proceed(to(voluntary(arbitration(notwithstanding(the(lack(of(
authority(of(Tabigue(et(al(from(the(union.(No.((
(
RATIO%
[Procedural]%CA%has%no%jurisdiction;%NCMB%not%a%QJA(
Sec(7(of(Rule(43(of(ROC(provides(that(failure(to(comply(with(the(requirements(
regarding( the( payment( of( docket( fees,( etc( shall( be( sufficient( ground( for( the(
dismissal( of( the( petition.( Even( if( this( is( relaxed,( the( CAs( decision( would( be(
sustained.(Sec(9((3)(of(BP129(provides(that(the(CA(exercises(exclusive(appellate(
jurisdiction(over(all(final(judgments,(decisions,(resolutions,(orders(or(awards(of(
RTCs(and(quasi?judicial(agencies,(instrumentalities,(boards(or(commissions.(((
((
An(agency(exercises(judicial(function(where(it(has(the(power(to(determine(what(
the( law( is( and( what( the( legal( rights( of( the( parties( are,( and( then( undertakes( to(
determine(these(questions(and(adjudicate(upon(the(rights(of(the(parties.(As(per(
NCMBs(functions(under(Sec(22(of(EO(126((Reorganization(Act(of(the(Ministry(of(
Labor(and(Employment),(it(cannot(be(considered(a(quasi?judicial(agency.(
(
[Substantive]%Voluntary%arbitration%cannot%proceed%
Petitioners(argument(that(unsettled(grievances(should(be(referred(to(voluntary(
arbitration(as(per(the(CBA(does(not(lie.((The(CBA(states:(
((
In$ case$ of$ any$ dispute$ arising$ from$ the$ interpretation$ or$ implementation$ of$ this$
Agreement$ or$ any$ matter$ affecting$ the$ relations$ of$ Labor$ and$ Management,$ the$
UNION$and$the$COMPANY$agree$to$exhaust$all$possibilities$of$conciliation$through$
the$grievance$machinery.$$The$committee$shall$resolve$all$problems$submitted$to$it$

within$fifteen$(15)$days$after$the$problems$have$been$discussed$by$the$members.$$If$
the$dispute$or$grievance$cannot$be$settled$by$the$Committee,$or$if$the$committee$
failed$to$act$on$the$matter$within$the$period$of$fifteen$(15)$days$herein$stipulated,$
the$UNION$and$the$COMPANY$agree$to$submit$the$issue$to$Voluntary$Arbitration.$
Selection$ of$ the$ arbitrator$ shall$ be$ made$ within$ seven$ (7)$ days$ from$ the$ date$ of$
notification$ by$ the$ aggrieved$ party.$ $ The$ Arbitrator$ shall$ be$ selected$ by$ lottery$
from$four$(4)$qualified$individuals$nominated$by$in$equal$numbers$by$both$parties$
taken$ from$ the$ list$ of$ Arbitrators$ prepared$ by$ the$ National$ Conciliation$ and$
Mediation$Board$(NCMB).$$If$the$Company$and$the$Union(representatives$within$
ten$(10)$days$fail$to$agree$on$the$Arbitrator,$the$NCMB$shall$name$the$Arbitrator.$$
The$ decision$ of$ the$ Arbitrator$ shall$ be$ final$ and$ binding$ upon$ the$ parties.$$
However,$the$Arbitrator$shall$not$have$the$authority$to$change$any$provisions$of$
the$Agreement.$$The$cost$of$arbitration$shall$be$borne$equally$by$the$parties.$$
((
Tabigue(et(al(have(not(been(duly(authorized(to(represent(the(union.((As(held(in(
Atlas(Farms,(Inc.(v.(NLRC:(
((
x( x( x( Pursuant( to( Article( 260( of( the( Labor( Code,( the% parties% to% a% CBA% shall%
name% or% designate% their% respective% representatives( to( the( grievance(
machinery(and(if(the(grievance(is(unsettled(in(that(level,(it(shall(automatically(be(
referred(to(the(voluntary(arbitrators(designated(in(advance(by(parties(to(a(CBA.((
Consequently( only( disputes( involving( the( union( and( the( company( shall( be(
referred(to(the(grievance(machinery(or(voluntary(arbitrators.(
((
The( SC( also( did( not( agree( with( the( petitioners( that( Art.( 255( of( the( LC( (an(
individual( employee( or( group( of( employees( shall( have( the( right( at( any( time( to(
present(grievances(to(their(employer)(is(an(exception(to(the(exclusiveness(of(the(
representative(role(of(the(labor(organization/union.(The(right(of(any(employee(
or(group(of(employees(to,(at(any(time,(present(grievances(to(the(employer(does(
not(imply(the(right(to(submit(the(same(to(voluntary(arbitration.(((

!
(
(
(
(
(
(
(

Insular%Hotel%Employees%Union\NFL%v.%Waterfront%Insular%
Hotel%Davao(Sept$22$2010$|$Peralta,$J.$
By:$Paola$

(
FACTS:%
Employer((respondent):(Waterfront(Insular(Hotel(Davao(
Registered(Union:(Davao(Insular(Hotel(Free(Employees(Union((DIHFEU?NFL)(
Unregistered(Union(and(actually(the(Federation(NFL((petitioner):(Insular(Hotel(
Employees(Union?NFL((IHEU?NFL)(
(
1. Nov.(6,(2000:(Respondent(Waterfront(Insular(Hotel(Davao(sent(the(DOLE(a(
Notice% of% Suspension% of% Operations( for( a( period( of( 6( months( due( to(
severe(and(serious(business(losses.((
2. Domy( Rojas,( the( President( of( DIHFEU?NFL( (Union( 1)( sent( respondent( a(
number(of(letters(asking(management(to(reconsider(its(decision.(
3. Rojas( intimated( that( the( members( of( the( Union( were( determined( to( keep(
their( jobs( and( were( willing( to( help( respondent( by( suspending( re?
negotiations(of(the(CBA,(and(reducing(employee(benefits(such(as:(
a. Suspension(of(the(CBA(for(10(years,(No(strike(no(lock?out(shall(be(
enforced.(
b. Pay( all( the( employees( their( benefits( due,( and( put( the( length( of(
service( to( zero( with( a( minimum( hiring( rate.( Payment( of( benefits(
may(be(on(a(staggered(basis(or(as(available.(
c. Night( premium( and( holiday( pays( shall( be( according( to( law.(
Overtime(hours(rendered(shall(be(offsetted(as(practiced.(
d. Reduce(the(sick(leaves(and(vacation(leaves(to(15(days/15days.(
e. Emergency(leave(and(birthday(off(are(hereby(waived.(
f. Duty( meal( allowance( is( fixed( at(P30.00( only.( No( more( midnight(
snacks(and(double(meal(allowance.(The(cook(drinks(be(stopped(as(
practiced.(
g. We( will( shoulder( 50%( of( the( group( health( insurance( and( family(
medical(allowance(be(reduced(to(1,500.00(instead(of(3,000.00.(
h. The( practice( of( bringing( home( our( uniforms( for( laundry( be(
continued.(
i. Fixed( manning( shall( be( implemented,( the( rest( of( manpower(
requirements( maybe( sourced( thru( WAP( and( casual( hiring.(
Manpower( for( fixed( manning( shall( be( 145( rank?and?file( union(
members.(
j. Union(will(cooperate(fully(on(strict(implementation(of(house(rules(
in( order( to( attain( desired( productivity( and( discipline.( The( union(
will(not(tolerate(problem(members.(
k. The(union(in(its(desire(to(be(of(utmost(service(would(adopt(multi?
tasking(for(the(hotel(to(be(more(competitive.(
4. Jan.( 2001:( the( Union,( through( Rojas,( submitted( to( respondent( a( Manifesto(
concretizing(their(earlier(proposals.(

5.
6.
7.

8.
9.

10.

11.

12.

13.

14.

15.

After(series(of(negotiations,(the%respondent%and%Union%signed%a%MOA%for%
the% re\opening% of% the% hotel% subject% to% the% concessions% made% by% the%
Union%in%their%Manifesto.(
Respondent( downsized( its( manpower( structure( to( 100( (from( 145)( rank?
and?file( employees( in( accordance( with( the( MOA( and( a( new( pay( scale( was(
made.(
Retained( employees( individually( signed( a( "Reconfirmation% of%
Employment( which( embodied( the( new( terms( and( conditions( of( their(
continued( employment.( Each( employee( was( assisted( by( Rojas( who( co?
signed(the(document.(
June(15,(2001:(Hotel(resumed(its(business(operations.(
Aug.( 22,( 2002:( Darius% Joves% and% Debbie% Planas,% claiming% to% be% local%
officers% of% the% National% Federation% of% Labor% (NFL)% filed% a% Notice% of%
Mediation% before% the% National% Conciliation% and% Mediation% Board%
(NCMB).(The(issue(raised(was(the("Diminution(of(wages(and(other(benefits(
through(unlawful(MOA.(
a. In( the( Notice( it( was( stated( that( the( union( involved( was( DARIUS(
JOVES/DEBBIE(PLANAS(et(al,(National(Federation(of(Labor(
Aug.( 29,( 2002:( NCMB( called( Joves( and( respondent( to( a( preliminary(
conference.( In( said( conference,( the( Submission( Agreement( signed( by(
respondent( and( Joves,( assisted( by( Atty.( Cullo,( wherein( they( chose( the(
accredited( voluntary( arbitrator( (AVA( Olvida),( Joves% indicated% that% he%
represented%IHEU\NFL%instead%of%NFL.(
a. To(support(his(authority(to(file,(Joves(presented(several(SPA((from(
union(members)(w/c(were(not(notarized(and(undated.((
Sept.(2,(2002(or(4(days(after,(respondent(filed(a("Manifestation(with(Motion(
for(a(Second(Preliminary(Conference"(that(the(persons(who(filed(the(instant(
complaint( in( the( name( of( IHEU?NFL( had% no% authority% to% represent( the(
Union.(
During%the%2nd%conference,%Cullo%confirmed%that%the%case%was%filed%not%
by% the% IHEU\NFL% but% by% the% NFL.( When( asked( to( present( his( authority(
from( NFL,( Cullo( admitted( that( the( case( was( filed( by% 79% individual%
employees%and%members%of%the%Union%named%in%SPAs.%%
Respondent%filed%a%motion%to%withdraw%from%the%proceedings%arguing%
that% the% persons% who% signed% the% complaint% were% not% the% authorized%
representatives% of% the% Union% indicated% in% the% Submission% Agreement%
nor%were%they%parties%to%the%MOA.((
AVA(Olvida(denied(the(motion(to(withdraw.((
a. He(ruled(that(proper(party(complainant(was(actually(the(IHEU?NFL(
as(the(union(and(not(NFL(and(the(other(members(
b. However,(since(the(NFL(is(the(mother(federation(of(the(local(union,(
and( signatory( to( the( existing( CBA,( it( can( represent( the( union,( the(
officers,(the(members(or(union(and(officers(or(members.(
Cullo,% in% his% pleadings,( now% started% using% the% caption% Insular% Hotel%
Employess%Union\NFL,%Complainant.((

16. Respondent( demanded( inhibition( of( Olvida( for( his( bias( and( prejudice.(
Olvida( complied( and( voluntarily( inhibited( himself( out( of( delicadeza.( It(
likewise( reiterated( its( statance( that( the( members( had( no( standing( to( file(
notice(of(mediation.((
17. New( AVA( was( selected.( AVA( Montejo( (Olvidas( replacement)( decided( in(
favor(of(Cullo,((
a. Declaring(the(MOA(in(question(as(invalid(as(it(is(contrary(to(law(and(
public(policy;(
b. Declaring(that(there(is(a(diminution(of(the(wages(and(other(benefits(
of(the(Union(members(and(officers(under(the(said(invalid(MOA.(
c. Ordering( respondent( management( to( immediately( reinstate( the(
workers( wage( rates( and( other( benefits( that( they( were( receiving(
and(enjoying(before(the(signing(of(the(invalid(MOA;(
d. Ordering(the(management(respondent(to(pay(attorneys(fees.(
(
18. Upon(appeal,(CA(reversed(and(declared(the(MOA(valid(and(enforceable.((MR(
denied(hence(this(petition.((
(
(
ISSUES/HELD/RATIO:(
(
W/N% the% accredited% voluntary% arbitrator% has% jurisdiction% because% the%
Notice%of%Mediation%does%not%mention%the%name%of%the%local%union%but%only%
of%the%affiliate%federation%(NFL).%%NO,(complaint(for(mediation(was(not(filed(
by(the(Union.(
A( review( of( the( development( of( the( case( shows( that( there( has( been( much(
confusion( as( to( the( identity( of( the( party( which( filed( the( case( against(
respondent.((
o In(the(Notice(of(Mediation(filed(before(the(NCMB,(it(stated(that(the(
union( involved( was( "DARIUS( JOVES/DEBBIE( PLANAS( ET.( AL.,(
National(Federation(of(Labor."((
o In( the( Submission( Agreement,( however,( it( stated( that( the( union(
involved(was(IHEU?NFL(
While( it( is( undisputed( that( a( submission( agreement( was( signed( by(
respondent(and(IHEU?NFL,(then(represented(by(Joves(and(Cullo,(this(Court(
finds(that(there(are(two(circumstances(which(affect(its(validity:(
1. the(Notice(of(Mediation(was(filed(by(a(party(who(had(no(authority(
to(do(so;(
2. that( respondent( had( persistently( voiced( out( its( objection(
questioning( the( authority( of( Joves,( Cullo( and( the( individual(
members(of(the(Union(to(file(the(complaint(before(the(NCMB.(
Under% Section% 3,% Rule% IV% of% the% NCMB% Manual% of% Procedure,% only% a%
certified% or% duly% recognized% bargaining% agent% may% file% a% notice% or%
request%for%preventive%mediation.%

Cullo% himself% admitted,% in% a% number% of% pleadings,% that% the% case% was%
filed% not% by% the% Union% but% by% the% NFL% and% individual% members% of% the%
Union.% Therefore,( the( NCMB( had( no% jurisdiction( to( entertain( the( notice(
filed(before(it.(
Even( though( respondent( signed( a( Submission( Agreement,( it( had(
immediately( manifested( after( 4( days( its( desire( to( withdraw( from( the(
proceedings( after( it( became( apparent( that( the( Union( had( no( part( in( the(
complaint.((
Respondent(cannot(be(estopped(in(raising(the(jurisdictional(issue,(because(
it( is( basic( that( the( issue( of( jurisdiction( may( be( raised( at( any( stage( of( the(
proceedings,(even(on(appeal,(and(is(not(lost(by(waiver(or(by(estoppel.(

(
(
W/N%the%individual%employees%and%members%of%the%UNION%had%standing%to%
file%the%complaint%before%the%NCMB.%(NO(
Tabigue(v.(International(Copra(Export(Corporation(citing(Atlas(Farms,(Inc.(v.(
NLRC(is(instructive:(
(
Pursuant( to( Article( 260( of( the( Labor( Code,( the( parties( to( a( CBA( shall(
name( or( designate( their( respective( representatives( to( the( grievance(
machinery( and( if( the( grievance( is( unsettled( in( that( level,( it( shall(
automatically( be( referred( to( the( voluntary( arbitrators( designated( in(
advance( by( parties( to( a( CBA.( Consequently,( only% disputes% involving%
the% union% and% the% company% shall% be% referred% to% the% grievance%
machinery%or%voluntary%arbitrators.(
(
W/N% the% federation% NFL% had% standing% to% file% the% complaint% before% the%
NCMB.((NO(
In(Coastal(Subic(Bay(Terminal,(Inc.(v.(DOLE,(SC(pronounced(that((
o A( local( union( does( not( owe( its( existence( to( the( federation( with(
which( it( is( affiliated.( It( is( a( separate( and( distinct( voluntary(
association( owing( its( creation( to( the( will( of( its( members.( Mere%
affiliation% does% not% divest% the% local% union% of% its% own%
personality,% neither% does% it% give% the% mother% federation% the%
license%to%act%independently%of%the%local%union.(
Even( granting( that( petitioner( Union( was( affiliated( with( NFL,( still( the(
relationship( between( that( of( the( local( union( and( the( affiliated( labor(
federation(or(national(union(with(is(that(of(an(agency,(where(the(local(is(the(
principal( and( the( federation( the( agency.( Being% merely% an% agent% of% the%
local%union,%NFL%should%have%presented%its%authority%to%file%the%Notice%
of%Mediation.%
As(provided(under(the(NCMB(Manual(of(Procedures,(only(a(certified(or(duly(
recognized(bargaining(representative(and(an(employer(may(file(a(notice(of(
mediation,(declare(a(strike(or(lockout(or(request(preventive(mediation.(The(

CBA(recognizes(that(DIHFEU?NFL(is(the(exclusive(bargaining(representative(
of(all(permanent(employees.(%
o The( inclusion( of( the( word( "NFL"( after( the( name( of( the( local( union(
merely( stresses( that( the( local( union( is( NFL's( affiliate.( It( does(
notmean( that( the( local( union( cannot( stand( on( its( own.( The( local(
union( owes( its( creation( and( continued( existence( to( the( will( of( its(
members(and(not(to(the(federation(to(which(it(belongs.(The(spring(
cannot(rise(higher(than(its(source,(so(to(speak.%
RE:(IHEU?NFL:%
o It(is(not(a(registered(labor(organization(but(respondent(is(estopped(
from( questioning( its( existence( since( it( did( not( raise( this( issue(
before(the(NCMB(%

(
(
W/N%respondent%was%really%suffering%from%serious%losses.((YES(
Cullos( reliance( on( the( denial( by( the( Wage( Board( of( respondents( petition(
from( exemption( from( a( Wage( Order( is( misplaced( since( said( petition( was(
denied( because( the( financial( statements( then( submitted( by( respondents(
were(not(audited.((
In( this( case,( respondent( submitted( its( audited( financial( statements( which(
show( that( for( the( years( 1998,( 1999,( until( September( 30,( 2000,( its( total(
operating(losses(amounted(to(P48,409,385.00.(Based(on(the(foregoing,(the(
CA( was( not( without( basis( when( it( declared( that( respondent( was( suffering(
from(impending(financial(distress.(
(
W/N%the%MOA%was%an%invalid%dimunition%of%benefits%prohibited%under%Art.%
100.((NO(
The( prohibition( against( elimination( or( diminution( of( benefits( set( out( in(
Article(100(of(the(Labor(Code(is(specifically(concerned(with(benefits(already(
enjoyed(at(the(time(of(the(promulgation(of(the(Labor(Code.(Article(100(does(
not,( in( other( words,( purport( to( apply( to( situations( arising( after( the(
promulgation(date(of(the(Labor(Code.(
Even( assuming( arguendo( that( Article( 100( applies( to( the( case( at( bar,( this(
Court(agrees(with(respondent(that(the(same(does(not(prohibit(a(union(from(
offering(and(agreeing(to(reduce(wages(and(benefits(of(the(employees.((
(
In( Rivera$ v.$ Espiritu,$ Court( ruled( that( right% to% free% collective% bargaining,%
after%all,%includes%the%right%to%suspend%it.%In(said(case,(it(was(held(that:(
o A( CBA( is( a( contract( executed( upon( request( of( either( the( employer(
or( the( exclusive( bargaining( representative( incorporating( the(
agreement(reached(after(negotiations(with(respect(to(wages,(hours(
of( work( and( all( other( terms( and( conditions( of( employment,(
including( proposals( for( adjusting( any( grievances( or( questions(
arising(under(such(agreement.((

The( primary( purpose( of( a( CBA( is( the( stabilization( of( labor?
management( relations( in( order( to( create( a( climate( of( a( sound( and(
stable( industrial( peace.( In( construing( a( CBA,( the( courts( must( be(
practical(and(realistic(and(give(due(consideration(to(the(context(in(
which(it(is(negotiated(and(the(purpose(which(it(is(intended(to(serve.(
The(assailed(PAL?PALEA(agreement%was%the%result%of%voluntary%
collective% bargaining% negotiations% undertaken% in% the% light% of%
the% severe% financial% situation% faced% by% the% employer,% with% the%
peculiar% and% unique% intention% of% not% merely% promoting%
industrial%peace%at%PAL,%but%preventing%the%latters%closure(
In(the(instant(case,(it(was(PALEA,(as(the(exclusive(bargaining(agent(
of(PALs(ground(employees,(which(voluntarily(entered(into(the(CBA(
with(PAL.(It(was(also(PALEA(that(voluntarily(opted(for(the(10?year(
suspension( of( the( CBA.( Either( case( was( the( unions( exercise( of( its(
right( to( collective( bargaining.( The% right% to% free% collective%
bargaining,%after%all,%includes%the%right%to%suspend%it(

(
Lastly,( this( Court( is( not( unmindful( of( the( fact( that( DIHFEU?NFL's(
Constitution( and( By?Laws( specifically( provides( that( "the( results( of( the(
collective( bargaining( negotiations( shall( be( subject( to( ratification( and(
approval(by(majority(vote(of(the(Union(members(at(a(meeting(convened,(or(
by(plebiscite(held(for(such(special(purpose."(
o Accordingly,( there( was( no( need( for( the( MOA( to( be( ratified( by( the(
members(of(the(Union((because(not(a(CBA)(
o However,( despite( this( non?ratification,( EEs( individually( signed(
contracts( denominated( as( "Reconfirmation( of( Employment( with(
the(assistance(by(their(president,(Rojas.(Therefore(EEs(are(aware(of(
the(MOA.((
o 87( union( members( signed( said( Reconfirmation( contract( and( 71( of(
them( are( allegedly( being( represented( by( Cullo.( Court( notes( that(
contract( was( freely( entered( into( by( the( EEs( and( MOA( is( deemed(
impliedly(ratified(by(them,(
o Having( enjoyed( the( benefit( under( said( contract( and( MOA( (not(
losing(their(jobs)(it(would(now(be(iniquitous(for(them(to(renege(on(
their(agreement.(

(
Petition(DENIED((
(
(
(
(
(

Divine% Word% University% of% Tacloban% v% SoLE% and% Divine% Word% University%
Employees%Union\ALU%
September(11,(1992(|(Romero,(J.(
By:(Cate(Alegre(
$
SUMMARY:% The( university( refused( to( acknowledge( the( proposals( of( the( union,( but(
instead(filed(a(petition(for(certification(election((questioning(the(validity(of(the(union.)(SC(
held( that( while( the( union( was( partly( at( fault( for( not( making( collective( bargaining(
proposals( sooner,( the( university( through( its( actions( evidently( had( no( intention( of(
bargaining(with(it.(
(
DOCTRINE:%The(university(may(not(validly(assert(that(its(consent(should(be(a(primordial(
consideration( in( the( bargaining( process.( By( its( acts,( no( less( than( its( inaction( which(
bespeak( its( insincerity,( it( has( forfeited( whatever( rights( it( could( have( asserted( as( an(
employer.$

%
FACTS:%%
Sep.( 6,( 1984,( Divine( Word( University( Employees( Union( (Union)( was( certified( as( the(
sole(and(exclusive(bargaining(agent(of(the(Divine(Word(University((DWU).(
March( 7,( 1985( ( The( Union( submitted( its( collective( bargaining( proposals.( DWU(
requested( a( preliminary( conference,( but( the( Unions( resigned( vice( president( Brigido(
Urminita( withdrew( the( CBA( proposals.( The( preliminary( conference( was( then(
cancelled.(
March( 11( 1988( ?( after( almost( 3( years,( the( Union,( now( affiliated( with( the( Associated(
Labor( Union( (ALU),( requested( a( conference( with( DWU( to( continue( the( collective(
bargaining(negotiations.(DWU(remained(silent(
The(Union(filed(with(the(NCMB(a(notice%of%strike((grounds:(bargaining(deadlock(and(
ULP,(specifically,(refusal(to(bargain,(discrimination(and(coercion(of(employees)(
This( led( to( conferences( and( the( May( 10( agreement( between( the( parties( where( the(
union( will( submit( CBA( proposals( and( parties( will( determine( the( members( of( the(
bargaining(unit(
However( before( the( May( 10( agreement( as( concluded,( DWU( filed( a( petition% for%
certification%election%(PCE)(with(the(DOLE.(When(the(Union(submitted(its(bargaining(
proposals,(DWU(ignored(them.(((
SoLE( Drilon( assumed( jurisdiction( and( ordered( all( workers( to( report( back( to( work(
within(24(hours(and(the(management(to(accept(them(
o SAME(DAY:(Med?Arbiter(Milado(acted(on(the(PCE(and(issued(an(order(directing(
the( conduct( of( a( certification( election( to( be( participated( by( the( union( and( no(
union.(This(was(held(in(abeyance(by(the(Sec.(of(Labor.(
SoLE:( the( non?conclusion( of( a( CBA( within( 1( year( doesnt( automatically( authorize( the(
holding(of(a(certification(election(when(it(appears(that(a(bargaining(deadlock(issue(has(
been( submitted( to( conciliation.( It( barred( the( Med?Arbiter( from( entertaining( the( PCE(
and(ordered(the(parties(to(enter(into(a(CBA(by(adopting(the(Unions(proposals(
DWU(filed(and(MR(and(the(Union(filed(a(second%notice%of%strike((grounds:(violation(of(
return?to?work(order(and(ULP)(
Acting%SoLE((dela(Serna(dismissed(the(MR(
o The( Unions( proposals( were( not( validly( withdrawn( and( only( 3/8( members( of(
the( Executive( Board( of( the( Union( signed( the( withdrawal.( Hence( DWU( is( not(
exculpated(from(the(duty(to(bargain(with(the(Union(

o The(surreptitious(filing(of(the(petition,(and(cunningly(entering(into(an(
agreement(which(required(the(union(to(submit(a(renewed(CBA(proposal(is(
patently(negotiating(in(bad(faith.(The(university(should(have(timely(raised(the(
issue(of(representation(if(it(believed(that(such(issue(was(valid.(
o DWU(should(be(in(default(and(the(SoLE(may(rightfully(impose(the(Unions(CBA(
proposals(

%
ISSUES/HELD:((
WON(the(CBA(proposals(can(be(unilaterally(imposed(in(this(case?(YES(
(
RATIO:%
Art.(258(of(the(LC(and(Rule(V(Book(V(Sec.(3(of(the(IRR(states(that:(in(the(absence(of(a(
collective(bargaining(agreement,(an(employer(who(is(requested(to(bargain(collectively(
may( file( a( petition( for( certification( election( any( time( except( upon( a( clear( showing(
that(one(of(these(two(instances(exists:((a)(the(petition(is(filed(within(1(year(from(the(
date( of( issuance( of( a( final( certification( election( result;( or( (b)( when% a% bargaining%
deadlock% had% been% submitted% to% conciliation% or% arbitration% or% had% become% the%
subject%of%a%valid%notice%of%strike%or%lockout.((
While( the( petition( for( certification( election( was( filed( by( the( university( in( a( timely(
manner( (after( almost( 4( years( from( the( time( of( the( certification( election),( the%
Secretary%of%Labor%found%that%a(bargaining%deadlock%existed.%
There(is(a%deadlock(when(there(is(a("complete(blocking(or(stoppage(resulting(from(the(
action(of(equal(and(opposed(forces;(as,(the(deadlock(of(a(jury(or(legislature."(The(word(
is(synonymous(with(the(word(impasse,(which("presupposes(reasonable(effort(at(good(
faith( bargaining( which,( despite( noble( intentions,( does( not( conclude( in( agreement(
between(the(parties."%
There( was( no% "reasonable% effort% at% good% faith% bargaining"% on% the% part% of% the%
university.(Its(indifferent(attitude(towards(collective(bargaining(inevitably(resulted(in(
the(failure(of(the(parties(to(arrive(at(an(agreement.(While(collective(bargaining(should(
be( initiated( by( the( union,( there( is( a( corresponding( responsibility( on( the( part( of( the(
employer( to( respond( in( some( manner( to( such( acts.( This( is( clear( from( Art.( 250(a)2( of(
the(LC.(%
o An( hour( before( the( start( of( the( May( 10( conference,( it( surreptitiously( filed( the(
petition(for(certification(election(to(preempt(the(conference%
o Belated( questioning( of( the( status( of( the( said( union.( In( the( May( 10( agreement,(
the(university(agreed("to(sit(down(and(determine(the(number(of(employees(that(
will( represent( their( bargaining( unit."( This( clearly( indicates( that( the( university(
recognized(the(union(as(the(bargaining(representative(of(the(employees(and(is,(
therefore,(estopped(from(questioning(the(majority(status(of(the(said(union.((
BUT% the% Union% was% not% entirely% blameless.( It( remained( passive( for( 3( years.( Only(
after(it(affiliated(with(ALU(that(it,(through(ALU,(requested(a(conference(for(the(purpose(
of(collective(bargaining.%

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
2!

ART.! 250.! Procedure! in! collective! bargaining.! ! The! following! procedures!

shall!be!observed!in!collective!bargaining: !
(a)!When!a!party!desires!to!negotiate!an!agreement,!it!shall!serve!a!written!
notice! upon! the! other! party! with! a! statement! of! its! proposals.! The! other!
party!shall!make!a!reply!thereto!not!later!than!10!calendar!days!from!receipt!
of!such!notice. !xxx!

o The% May% 10% Agreement% may% as% well% be% considered% the% written% notice% to%
bargain%under(Art.(250(a)(which(set(the(motion(for(collective(bargaining.%
HOWEVER% SC% is% not% inclined% to% rule% that% there% has% been% a% deadlock% in% the%
collective%bargaining%process.%%
o There(has(not(been(a("reasonable(effort(at(good(faith(bargaining"(on(the(part(of(
the(university.%
o While(the(Court(recognizes(that(technically,(the(university(has(the(right(to(file(
the( petition( for( certification( election( as( there( was( no( bargaining( deadlock( to(
speak(of,(to(grant(its(prayer(that(the(herein(assailed(Orders(be(annulled(would(
put(an(unjustified(premium(on(bad(faith(bargaining.%
Hence,(the(universitys%contention(that(the(unions(proposals(may(not(be(unilaterally(
imposed( on( it( on( the( ground( that( a( collective( bargaining( agreement( is( a( contract(
wherein(the(consent(of(both(parties(is(indispensable(is(devoid%of%merit.%
SC(applied(Kiok(Loy(v.(NLRC3(since(the(facts(therein(have(also(been(established(in(this(
case:((a)(the(union(is(the(duly(certified(bargaining(agent;((b)(it(made(a(definite(request(
to( bargain( and( submitted( its( collective( bargaining( proposals,( and( (c)( the( university(
made(no(counter(proposal(whatsoever%
o "a(company's(refusal(to(make(counter(proposal(if(considered(in(relation(to(the(
entire( bargaining( process,( may( indicate( bad( faith( and( this( is( especially( true(
where(the(Union's(request(for(a(counter(proposal(is(left(unanswered."%

(
(
(
(
(
(
(
(
(
(
(
(
(
(

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
3

!SC!upheld!the!order!of!the!NLRC!declaring!the!union's!draft!CBA!proposal!as!
the! collective! agreement! which! should! govern! the! relationship! between! the!
parties.!

COLEGIO% DE% SAN% JUAN% DE% LETRAN% vs.% ASSOCIATION% OF% EMPLOYEES% AND%
FACULTY%OF%LETRAN%

7.

March( 27,( 1996?( before( the( NCMB( the( parties( met( to( discuss( the(
grounds(rules(for(the(negotiation.((
8. March(29,(1996?(union(received(a(letter(from(Letran(dismissing(Ambas(
for( insubordination.(The( union( amended( its( notice( of( strike( to( include(
Ambas(dismissal.(
9. April( 20,( 1996?( both( parties( again( discussed( the( ground( rules( for( the(
CBA( renegotiation( but( petitioner( stopped( the( negotiations( after( it(
purportedly( received( information( that( a( new( group( of( employees( had(
filed(a(petition(for(certification(election.((
10. June( 18,( 1996?( union( finally( struck.( SOLE( assumed( jurisdiction( and(
ordered(employees(to(get(back(to(work(and(for(Letran(to(accept(them(
back.( Striking( members( were( admitted( except( Ambas.( SOLE( declared(
Letran(guilty(of(ULP.(
(

G.R.(No.(141471|(September(18,(2000|(Kapunan.(
Digest(by(Ian.(
(
Summary:%The(union(filed(a(case(for(ULP(against(Letran(when(the(latter(refused(
to( bargain/( re?negotiate( the( CBA( in( lieu( of( a( petition( for( certification( election(
filed(by(rival(union.(The(SC(ruled(against(Letran(and(held(that(the(mere(filing(of(
a(petition(for(certification(election(does(not(ipso(facto(justify(the(suspension(of(
the(negotiation(by(the(employer.(The(petition(must(comply(with(the(provisions(
of(the(Labor(Code.(The(SC(also(held(that(there(was(ULP(when(Letran(unilaterally(
suspended( the( ongoing( negotiations( for( a( new( CBA.( Lastly,( Letran( was( held( in(
violation( of( the( employees( right( to( self?organization( when( it( terminated( the(
union(president.((

Issue:(WON(Letran(is(guilty(of(ULP.((
Held:%Yes.(
Ratio:%%

1.

Facts:%%
1.
2.

3.
4.

5.

6.

December(1992?(union(initiated(a(renegotiation(of(its(CBA(with(Letran(
for(the(last(2(years(of(the(CBAs(5?year(life(from(1989?94.((
The( new( officers( wanted( to( continue( the( renegotiation( but( Letran(
refused,(claiming(that(the(CBA(was(already(prepared(for(signing(by(the(
parties.(The(disputed(CBA(was(submitted(to(a(referendum(but(this(was(
rejected(by(the(union(members.(
Letran(then(accused(the(union(officers(of(bargaining(in(bad(faith(before(
the(NLRC.(The(LA(ruled(in(favor(of(petitioner(but(this(was(reversed(by(
the(NLRC.(
January(1996?(union(notified(the(NCMB(of(its(intention(to(strike(due(to(
Letrans(non?compliance(with(the(NLRC(order(to:(
a. Delete(the(name(of(Atty.(Federico(Leyness(as(the(unions(legal(
counsel;(and(
b. Engage(in(bargaining(
January( 18,( 1996?( parties( agreed( to( disregard( the( CBA( and( start(
negotiation( on( a( new( 5?year( CBA( starting( 1994?1999.( The( unions(
proposals( were( submitted( to( the( Board( of( Trustees( for( its( approval.((
Further,( the( unions( president,( ( Eleanor( Ambas( was( informed( that( her(
shift(was(changed(from(M?F(to(Tue?Sat.(Ambas(protested(and(requested(
manangement(to(submit(the(issue(to(a(grievance(machinery(under(the(
old(CBA.((
March(13,(1996?(due(to(petitioners(inaction,(the(union(filed(a(notice(of(
strike.(

2.

The( duty( to( bargain( is( defined( under( Article( 2524.( Noteworthy( in( the(
definision(is(the(requirement(on(both(parties(of(the(performance(of(the(
mutual( obligation( to( meet( and( convene( promptly( and( expeditiously( in(
good( faith( for( the( purpose( of( negotiating( an( agreement.( Undoubtedly,(
the(union(lived(up(to(this(requisite(when(it(presented(its(proposals(for(
the( CBA( to( petitioner( on( February( 7,( 1996.( On( the( other( hand,(
petitioner(devised(ways(and(means(in(order(to(prevent(the(negotiation.((
Petitioner's( utter( lack( of( interest( in( bargaining( with( the( union( is(
obvious(in(its(failure(to(make(a(timely(reply(to(the(proposals(presented(
by( the( latter.( More( than( a( month( after( the( proposals( were( submitted(
bythe(union,(petitioner(still(had(not(made(any(counter?proposals.(This(
inaction(on(the(part(of(petitioner(prompted(the(union(to(file(its(second(
notice(of(strike(on(March(13,(1996.(Petitioner(could(only(offer(a(feeble(
explanation(that(the(Board(of(Trustees(had(not(yet(convened(to(discuss(
the( matter( as( its( excuse( for( failing( to( file( its( reply.( This( is( a( clear(
violation(of(Article(2505(of(the(Labor(Code(governing(the(procedure(in(

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
4( Art.( 252.( Meaning( of( duty( to( bargain( collectively.( ?( The( duty( to( bargain( collectively(

means( the( performance( of( a( mutual( obligation( to( meet( and( convene( promptly( and(
expeditiously(in(good(faith(for(the(purpose(of(negotiating(an(agreement(with(respect(to(
wages,( hours( of( work( and( all( other( terms( and( conditions( of( employment( including(
proposals( for( adjusting( any( grievances( or( questions( arising( under( such( agreement( and(
executing(a(contract(incorporating(such(agreements(if(requested(by(either(party(but(such(
duty(does(not(compel(any(party(to(agree(to(a(proposal(or(to(make(any(concession.((
5(

Art.( 250.( Procedure( in( collective( bargaining.( ?( The( following( procedures( shall( be(

3.

4.

5.

6.
7.

collective(bargaining.((
The( company's( refusal( to( make( counter?proposal( to( the( union's(
proposed(CBA(is(an(indication(of(its(bad(faith.(Where(the(employer(did(
not(even(bother(to(submit(an(answer(to(the(bargaining(proposals(of(the(
(
union,(there(is(a(clear(evasion(of(the(duty(to(bargain(collectively. In(the(
case( at( bar,( petitioner's( actuation( show( a( lack( of( sincere( desire( to(
negotiate(rendering(it(guilty(of(unfair(labor(practice.((
The( claim( of( the( petitioner( that( there( was( a( pending( petition( for(
certification( election( is( unavailing.( In( order( to( allow( the( employer( to(
validly( suspend( the( bargaining( process( there( must( be( a( valid( petition(
for( certification( election( raising( a( legitimate( representation( issue.(
Hence,( the( mere( filing( of( a( petition( for( certification( election( does( not(
ipso$ facto$ justify( the( suspension( of( negotiation( by( the( employer.( The(
petition(must(first(comply(with(the(provisions(of(the(Labor(Code(and(its(
Implementing( Rules.( Foremost( is( that( a( petition( for( certification(
election( must( be( filed( during( the( sixty?day( freedom( period.( The(
"Contract( Bar( Rule"( under( Section( 3,( Rule( XI,( Book( V,( of( the( Omnibus(
Rules(Implementing(the(Labor(Code.((
In( the( case( at( bar,( the( lifetime( of( the( previous( CBA( was( from(
1989?1994.( The( petition( for( certification( election( by( ACEC,( allegedly( a(
legitimate( labor( organization,( was( filed( with( the( Department( of( Labor(
and( Employment( (DOLE)( only( on( May( 26,( 1996.( Clearly,( the( petition(
was(filed(outside(the(sixty?day(freedom(period.(Hence,(the(filing(thereof(
was(barred(by(the(existence(of(a(valid(and(existing(collective(bargaining(
agreement.( Consequently,( there( is( no( legitimate( representation( issue(
and,( as( such,( the( filing( of( the( petition( for( certification( election( did( not(
constitute(a(bar(to(the(ongoing(negotiation.((
Concerning( the( issue( on( the( validity( of( the( termination( of( the( union(
president,( we( hold( that( the( dismissal( was( effected( in( violation( of( the(
employees'(right(to(self?(organization.((
To(justify(the(dismissal,(petitioner(asserts(that(the(union(president(was(
terminated( for( cause,( allegedly( for( insubordination( for( her( failure( to(
comply( with( the( new( working( schedule( assigned( to( her,( and( pursuant(
to( its( managerial( prerogative( to( discipline( and/or( dismiss( its(
employees.(While(we(recognize(the(right(of(the(employer(to(terminate(
the(services(of(an(employee(for(a(just(or(authorized(cause,(nevertheless,(
the(dismissal(of(employees(must(be(made(within(the(parameters(of(law(
and(pursuant(to(the(tenets(of(equity(and(fair(play.The(employer's(right(

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

8.

(
(
(
%
%
(
(
(
(
(

observed(in(collective(bargaining:((

(a)(When(a(party(desires(to(negotiate(an(agreement,(it(shall(serve(a(written(notice(upon(
the( other( party( with( a( statement( of( its( proposals.( The( other( party( shall( make( a( reply(
thereto(not(later(than(ten((10)(calendar(days(from(receipt(of(such(notice.((

to( terminate( the( services( of( an( employee( for( just( or( authorized( cause(
(
must(be(exercised(in(good(faith. More(importantly,(it(must(not(amount(
to(interfering(with,(restraining(or(coercing(employees(in(the(exercise(of(
their( right( to( self?organization( because( it( would( amount( to,( as( in( this(
case,(unlawful(labor(practice(under(Article(248(of(the(Labor(Code.((
The( factual( backdrop( of( the( termination( of( Ms.( Ambas( leads( us( to( no(
other(conclusion(that(she(was(dismissed(in(order(to(strip(the(union(of(a(
leader(who(would(fight(for(the(right(of(her(co?workers(at(the(bargaining(
table.(Ms.(Ambas,(at(the(time(of(her(dismissal,(had(been(working(for(the(
petitioner( for( ten( (10)( years( already.( In( fact,( she( was( a( recipient( of( a(
loyalty( award.( Moreover,( for( the( past( ten( (10)( years( her( working(
schedule(was(from(Monday(to(Friday.(However,(things(began(to(change(
when( she( was( elected( as( union( president( and( when( she( started(
negotiating( for( a( new( CBA.( Thus,( it( was( when( she( was( the( union(
president( and( during( the( period( of( tense( and( difficult( negotiations(
when( her( work( schedule( was( altered( from( Mondays( to( Fridays( to(
Tuesdays(to(Saturdays.(When(she(did(not(budge,(although(her(schedule(
was(changed,(she(was(outrightly(dismissed(for((
alleged(insubordination.((
(
(

General%Milling%Corp.%v.%CA%
February$11,$2004$|$Quisumbing,$J.(
By:$Jadd$
$
SUMMARY:%

Two( months( before( the( 1988( CBA( expired,( GMC( received( union( withdrawal(
letters(from(GMC?ILU(members.(GMC?ILU(sent(a(proposed(CBA(1(day(before(the(
expiration.(GMC(did(not(send(a(counter?proposal.(GMC(also(refused(to(act(on(the(
union's(request(for(grievance(procedures(after(GMC(dismissed(a(union(member(
for( incompetence.( The( union( filed( a( ULP( complaint( for( refusal( to( bargain(
collectively,(interference(with(the(right(to(self?organization,(and(discrimination.(
The( LA( dismissed( the( complaint( and( recommended( a( petition( for( certification(
election.( The( NLRC( initially( set( aside( the( LA's( decision( and( ordered( GMC( to(
abide(by(the(proposed(CBA(draft(from(the(expiration(of(the(1988(CBA.(However,(
the( NLRC( granted( GMC's( MR( and( reversed( itself.( The( CA( reinstated( the( first(
NLRC( decision( ordering( GMC( to( abide( by( the( proposed( CBA( draft.( SC( denied(
GMC's(petition(for(certiorari,(holding(that(the(CA(could(impose(the(terms(of(the(
draft( CBA( because( fairness,( equity,( and( social( justice( would( be( defeated( if( the(
old( terms( subsisted( due( to( GMC's( delaying( tactics.( GMC( was( also( found( to( be(
guilty( of( the( ULPs( of( refusing( to( collectively( bargain( and( interfering( with( the(
right(to(self?organization.(
(
DOCTRINE:%
A( proposed( draft( CBA( may( be( imposed( where( a( party( abuses( the( grace( period(
by( purposely( delaying( the( bargaining( process( and( the( terms( are( found( to( be(
reasonable.(
(
The(old(CBA(subsists(until(a(new(one(is(agreed(upon(except(where(there(is(bad(
faith,(such(as(the(abuse(of(the(grace(period(by(purposely(delaying(the(bargaining(
process.(
(
FACTS:%
Parties:(
o Petitioner((GMC((General(Milling(Corporation)(
o Respondents:(
! Public(Respondent((Court(of(Appeals(
! Private(Respondents:(
The( Union( ( GMC?ILU( (General( Milling(
Corporation?Independent(Labor(Union)(
Rito(Mangubat((Union(officer(
April(28,(1989((GMC(and(the(union(concluded(a(CBA.(
o Includes(provision(for(a(3?year(representation(term.(
o Effectivity((3(years(retroacting(to(December(1,(1988(
o Expiry((November(30,(1991(

As( early( as( October( 1991( ( GMC( received( letters( (collective( and(
individual)(from(workers(stating(their(withdrawal(from(the(union(due(
to(religious(affiliation(and(personal(differences.(
November( 29,( 1991( (1( day( before( expiration)( ( The( union( sent( a(
proposed(CBA(and(requested(for(a(counter?proposal(w/in(10(days.(
GMC(did(not(send(a(counter?proposal.(
December( 16,( 1991( ( GMC( wrote( to( 2( union( officers( (Rito( Mangubat(
and(Victor(Lastimoso)(explaining(that(it(felt(no(basis(to(negotiate(with(a(
non?existent( union( but( also( expressing( willingness( to( dialogue( on(
common(concerns.(
December( 19,( 1991( ( Rito( and( Victor( wrote( a( letter( of( this( date,(
disclaiming( any( mass( disaffiliation( or( resignation,( and( submitted( a(
manifesto( signed( by( union( members( to( the( effect( that( they( did( not(
withdraw.(
January(13,(1992((GMC(dismissed(a(union(member((Marcia(Tumbiga)(
for(incompetence.(
o Despite( the( unions( protest( and( request( for( grievance(
procedures,(GMC(told(them(to(refer(to(the(December(16,(1991(
Letter.(
July( 2,( 1992( ( The( union( filed( a( ULP( complaint( for:( (1)( refusal( to(
bargain( collectively;( (2)( interfering( with( the( right( to( self?organization;(
and((3)(discrimination.(
LA( dismissed( the( complaint( and( recommended( a( petition( for(
certification(election.(
January( 30,( 1998( ( NLRC( set( aside( the( LAs( decision,( ordering( GMC( to(
abide( by( the( proposed( CBA( draft( beginning( from( the( end( of( the( first(
CBA.(
October(6,(1998((NLRC(reversed(itself(and(granted(GMCs(MR.(
July( 19,( 2000( ( CA( granted( the( unions( petition( for( certiorari( and(
reinstated(the(first(NLRC(decision.(
GMC(goes(up(to(the(SC(through(a(petition(for(certiorari.(

(
ISSUES/HELD:(
1) (Topical)(WON(the(CA(had(jurisdiction(to(impose(the(terms(of(the(draft(
CBA(for(2(years(beginning(from(the(expiration(of(the(prior(one.((YES(
2) WON(GMC(is(guilty(of(the(ULP(of(refusing(to(collectively(bargain(and/or(
interference(with(the(right(to(self?organization((YES((both)(
(
%
RATIO:%
1) Yes,( a( proposed( draft( CBA( may( be( imposed( where( a( party( abuses( the(
grace( period( by( purposely( delaying( the( bargaining( process( because( it(
would(be(contrary(to(fairness,(equity,(and(social(justice(to(allow(the(old(
CBAs(terms(and(conditions(to(subsist(despite(the(employers(delaying(
the(negotiations.(

A) General( Rule( ( Status( quo:( Old( CBA( subsists( until( new( one( agreed(
upon.(
1. Statutory(Basis((Labor(Code(Art.(259((then(Art.(253)(
2. Limitation( ( This( presupposes( that( there( is( no( bad( faith( (in(
other(words,(all(other(things(are(equal.)(
3. Exception( ( Deviating( from( this( rule( is( warranted( where( a(
party( abuses( the( grace( period( by( purposely( delaying( the(
bargaining(process.(
a) Illustrative(cases:(
1. Kiok$Loy$v.$NLRC((1986):(
a. Situation( ( Sweden( Ice( Cream( Plant(
refused(to(submit(any(counter(proposal(to(
the( certified( bargaining( agent's( proposed(
CBA.(
b. Holding( ( The( employer( lost( the( right( to(
bargain,(and(the(SC(imposed(the(proposed(
CBA(terms.(
c. Delays((postponements,(non?appearance,(
undue(delay(in(submitting(documents(
2. Divine$Word$University$of$Tacloban$v.$SOLE((1992):(
a. Holding( ( SC( upheld( CBAs( unilateral(
imposition( because( the( employers( own(
acts( led( to( it( forfeiting( whatever( rights( it(
had(as(an(employer.(
b) In(this(case:(
1. It( would( be( unfair( to( the( union( and( its(
members( if( the( old( terms( subsisted( for( the(
remaining(2(years.(
2. The( employer( delayed( negotiations,( violating(
its( duty( to( collectively( bargain,( so( it( lost( its(
right(to(negotiate(on(the(proposed(draft(CBA.(
3. Even( if( the( instant( case( differs( from( the( 2(
illustrative( cases( in( that( there( was( no( pre?
existing( CBA( in( them,( the( rationale( still(
applies( because( holding( otherwise( would(
amount( to( letting( GMC( have( its( cake( and( eat(
it(too.(
4. Substantial( evidence( supports( the( CAs(
affirmation( of( the( NLRCs( findings( that( the(
proposed(terms(were(reasonable.(
B) On(the(acceptance(of(proposals:(
1. Generally,( parties( are( not( obliged( to( accept( or( agree( to( the(
others(proposals.(
2. However,( erring( parties( should( not( be( allowed( to( resort( with(
impunity( to( feign( negotiations( with( empty( gestures.( (Citing(
Divine$Word$University$of$Tacloban$v.$SOLE,(1992)(

a. Basis((Equity(and(fair(play.(
2) Yes,( GMC( committed( the( ULPs( of:( (1)( failing( its( duty( to( collectively(
bargain( because( it( failed( to( make( a( timely( reply( without( sufficient(
justification;( and( (2)( interfering( with( the( right( to( self?organization(
because(the(letters(of(withdrawal(came(out(during(the(cases(pendency(
at(the(LA(level.(
A) On(the(duty(to(collectively(bargain:(
1. Test((Depends(on(the(facts(of(the(case,(particularly(the(impact(
of(all(acts(as(a(whole.((Citing(Hongkong$and$Shanghai$Banking$
Corporation$Employees$Union$v.$NLRC,(1997)(
2. Concept( ( Found( in( Art.( 258( and( 259( (then( 252( only):( The(
performance( of( a( mutual( obligation( to( meet( and( convene(
promptly( and( expeditiously( in( good( faith( for( negotiating( an(
agreement.(
3. Procedure((Found(in(Labor(Code(Art.(256((then(250).(
a. Nature( ( Mandatory( because( of( the( state( interest( in(
industrial(peace.(
4. In(this(case:(GMC(
i. Failed(to(make(a(timely(reply.(
ii. Had( a( flimsy( excuse( since( its( feeling( that( the(
union( no( longer( represented( the( workers(
turned(out(to(be(baseless.(
5. GMCs(refusal(to(make(a(counter?proposal(indicated(bad(faith.(
A) On( the( interference( with( the( right( to( self?organization( ( The( CA(
correctly( held( that( the( timing( of( the( letters( showed( an( attempt( to(
cast(doubt(on(the(unions(status.(
1. The( letters( were( dated( February( to( June( of( 1993,( during( the(
pendency(of(the(case(with(the(LA.6(
(
(
(
(
(
(
(
(
(

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
6

!But!I!dont!know!what!the!Court!made!of!the!earlier!letters!(See!Fact!Bullet!#3).!!

FVC%Labor%Union%%Philippine%Transport%and%General%Workers%
Organization%v.%Sama\samang%Nagkakaisang%Manggagawa%sa%
FVC%%Solidarity%of%Independent%and%General%Labor%
Organizations%
November$27,$2009$|$Brion$$
By:$Kiko$del$Valle$$
$

SUMMARY:%FVCLU?PTGWO(and(FVC(amended(the(CBA(extending(its(
five?year(term(for(four(months.(Nine(days(before(the(expiry(of(the(
original(five?year(term,(SANAMA?SIGLO(filed(a(petition(for(certification(
election.((
%
(
DOCTRINE:% While(the(parties(may(agree(to(extend(the(CBAs(original(five?

year(term(together(with(all(other(CBA(provisions,(any(such(amendment(
or( term( in( excess( of( five( years( will( not( carry( with( it( a( change( in( the(
unions( exclusive( collective( bargaining( status.(By( express( provision( of(
the( above?quoted( Article( 253?A,( the( exclusive( bargaining( status( cannot(
go(beyond(five(years(and(the(representation(status(is(a(legal(matter(not(
for(the(workplace(parties(to(agree(upon.%
(
FACTS:%
FVCLU?PTGWO(the(recognized(bargaining(agent(of(the(rank?and?file(employees(
of(the(FVC(Philippines,(Incorporated((company)(signed(a(five?year(CBA(with(the(
company(from(February(1,(2001(to(May(31,(2003.((
(
At(the(end(of(the(3rd(year(of(the(five?year(term(and(pursuant(to(the(CBA,(FVCLU?
PTGWO( and( the( company( entered( into( the( renegotiation( of( the( CBA( and(
modified,( among( other( provisions,( the( CBAs( duration.(Article( XXV,( Section( 2( of(
the( renegotiated( CBA( provides( that( this$ reanegotiation$ agreement$ shall$ take$
effect$ beginning$ February$ 1,$ 2001$ and$ until$ May$ 31,$ 2003(thus( extending( the(
original(five?year(period(of(the(CBA(by(four((4)(months.(
(
Nine( (9)( days( before( the( January( 30,( 2003( expiration( of( the( originally?agreed(
five?year( CBA( term( (and$ four$ [4]$ months$ and$ nine$ [9]$ days$ away$ from$ the$
expiration$ of$ the$ amended$ CBA$ period),( the( respondent( Sama?Samang(
Nagkakaisang(Manggagawa(sa(FVC?Solidarity(of(Independent(and(General(Labor(
Organizations( (SANAMAaSIGLO)( filed( before( DOLE( a( petition( for( certification(
election( (PCE)( for( the( same( rank?and?file( unit( covered( by( the( FVCLU?PTGWO(
CBA.((
(
FVCLU?PTGWO( moved( to( dismiss( the( PCE( on( the( ground( that( the( certification(
election( petition( was( filed( outside( the( freedom( period( or( outside( of( the( sixty(
(60)(days(before(the(expiration(of(the(CBA.(
(

The( Mediation( Arbiter( dismissed( the( petition( on( the( ground( that( it( was( filed(
outside(the(60?day(period.((
(
SANAMA?SIGLO( appealed( to( DOLE.( DOLE( sustained( SANAMA?SIGLOs( position(
that(the(filing(of(the(petition(on(January(21,(2003(was(within(60?days(from$the$
January$30,$2003$expiration$of$the$original$CBA$term.$DOLE(ordered(the(conduct(
of(certification(election.(FVCLU?PTGWO(moved(for(reconsideration(which(DOLE(
granted.(DOLE(held(that(the(amended(CBA(had(been(ratified(by(members(of(the(
bargaining( unit( some( of( whom( later( organized( themselves( as( SANAMA?SIGLO,(
the( certification( election( applicant.(Since( these( SANAMA?SIGLO( members( fully(
accepted( and( in( fact( received( the( benefits( arising( from( the( amendments,( the(
Acting( Secretary( rationalized( that( they( also( accepted( the( extended( term( of( the(
CBA( and( cannot( now( file( a( petition( for( certification( election( based( on( the(
original( CBA( expiration( date.( SANAMA?SIGLO( moved( for( the( reconsideration(
which(the(SOLE(denied.(
(
SANAMA?SIGLO( appealed( to( the( CA.( CA( found( the( petition( meritorious,( ruling(
that(while(the(parties(may(renegotiate(the(other(provisions((economic(and(non?
economic)(of(the(CBA,(this(should(not(affect(the(five?year(representation(aspect(
of( the( original( CBA.(If( the( duration( of( the( renegotiated( agreement( does( not(
coincide( with( but( rather( exceeds( the( original( five?year( term,( the( same( will( not(
adversely( affect( the( right( of( another( union( to( challenge( the( majority( status( of(
the( incumbent( bargaining( agent( within( sixty( (60)( days( before( the( lapse( of( the(
original(five((5)(year(term(of(the(CBA.((
(
FVCLU?PTGWO( appealed( to( the( SC,( contending( that( the( extension( of( the( CBA(
term( also( changed( the( unions( exclusive( bargaining( representation( status( and(
effectively( moved( the( reckoning( point( of( the( 60?day( freedom( period( from(
January(30,(2003(to(May(30,(2003.(
(
Subsequently,(SANAMA?SIGLO(manifested(that(they(are(abandoning(their(desire(
to( contest( the( representative( status( of( FVCLU?PTGWO( since( the( July( 2006( CA(
Decision.(
%
ISSUES/HELD:%
WON( the( petition( for( certification( election( filed( by( SANAMA?SIGLO( was( filed(
beyond( the( 60?day( period( to( contest( the( representative( status( of( FVCLU?
PTGWO?(
(
RATIO:%
While( SANAMA?SIGLO( has( manifested( its( abandonment( of( its( challenge( to( the(
exclusive( bargaining( representation( status( of( FVCLU?PTGWO,( we( deem( it(
necessary(to(resolve(the(issue(as(it(will(inevitably(recur(in(the(future.(
(
Article(253?A(of(the(Labor(Code(provides:(
(

xxx( No( petition( questioning( the( majority( status( of( the( incumbent( bargaining(
agent( shall( be( entertained( and( no( certification( election( shall( be( conducted( by(
the( Department( of( Labor( and( Employment( outside( of( the( sixty( day( period(
immediately( before( the( date( of( expiry( of( such( five?year( term( of( the( Collective(
Bargaining(Agreement.(xxx(

(
Book(V,(Rule(VIII(of(the(IRR(of(the(Labor(Code(provides:((
(

Sec.( 14.(Denial( of( the( petition;( grounds.( The( Med?Arbiter( may( dismiss( the(
petition(on(any(of(the(following(grounds:(
((
x(x(x(x(
((
(b)(the(petition(was(filed(before(or(after(the(freedom(period(of(a(duly(registered(
collective( bargaining( agreement;(provided( that( the( sixty?day( period( based( on(
the( original( collective( bargaining( agreement( shall( not( be( affected( by( any(

amendment,( extension( or( renewal( of( the( collective( bargaining(

agreement.(
(
(

While(the(parties(may(agree(to(extend(the(CBAs(original(five?year(term(
together(with(all(other(CBA(provisions,(any(such(amendment(or(term(in(
excess( of( five( years( will( not( carry( with( it( a( change( in( the( unions(
exclusive(collective(bargaining(status.(By(express(provision(of(the(above?
quoted(Article(253?A,(the(exclusive(bargaining(status(cannot(go(beyond(
five( years( and( the( representation( status( is( a( legal( matter( not( for( the(
workplace( parties( to( agree( upon.(In( other( words,( despite( an( agreement(
for( a( CBA( with( a( life( of( more( than( five( years,( either( as( an( original(
provision(or(by(amendment,(the(bargaining(unions(exclusive(bargaining(
status(is(effective(only(for(five(years(and(can(be(challenged(within(sixty(
(60)(days(prior(to(the(expiration(of(the(CBAs(first(five(years.(
(
In(San$ Miguel$ Corp.$ Employees$ Union$ PTGWO,$ et$ al.$ v.$ Confesor,$ San$
Miguel$Corp.,$Magnolia$Corp.$and$San$Miguel$Foods,$Inc.:(
(
(
In( the( event( however,( that( the( parties,( by( mutual( agreement,(
enter(into(a(renegotiated(contract(with(a(term(of(three((3)(years(
or(one(which(does(not(coincide(with(the(said(five?year(term(and(
said( agreement( is( ratified( by( majority( of( the( members( in( the(
bargaining( unit,( the( subject( contract( is( valid( and( legal( and(
therefore,( binds( the( contracting( parties.(The( same( will( however(
not( adversely( affect( the( right( of( another( union( to( challenge( the(
majority( status( of( the( incumbent( bargaining( agent( within( sixty(

(60)(days(before(the(lapse(of(the(original(five((5)(year(term(of(the(
CBA.(
(
The( negotiated( extension( of( the( CBA( term( has( no( legal( effect( on( the(
FVCLU?PTGWOs( exclusive( bargaining( representation( status( which(
remained(effective(only(for(five(years(ending(on(the(original(expiry(date(
of(January(30,(2003.(Thus,(SANAMA?SIGLO(could(properly(file(a(petition(
for(certification(election(and(its(petition(was(seasonably(filed.(
(
SC( however( did( not( order( the( conduct( of( a( petition( for( certification(
election( because( of( the( manifestation( of( SANAMA?SIGLO( abandon( its(
challenge(to(the(exclusive(majority(statues(of(PTGWO.(
(
(
Digitel(Telecoms(Phil.(v.(Digitel(Employees(Union,(683(SCRA(466((2012)(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(

ROYAL%INTEROCEAN%LINES,%ET%AL.,%petitioners,%vs.%HON.%COURT%OF%
INDUSTRIAL%RELATIONS,%ET%AL.,%respondents.%
G.R.(No.(L?11745(|(October(31,(1960(
%
FACTS:%[ULP]%%
Royal(Interocean(Lines,(is(a(foreign(corporation(licensed(to(do(business(in(
the(Philippines,(with(head(office(in(Hongkong.(Its(branch(office(in(Manila(
employed(respondent(Ermidia%A.%Mariano(who(had(worked(for(the(
petitioner(since(January(5,(1932,(until(her(discharge(on(October(23,(1953.(
October,(1953:(the(respondent(and(the(manager(of(the(Manila(Branch(
(Kamerling)%developed%strained%relationship(that(led(the(former(to(
lodge(with(the(managing(director(in(Hongkong(a(complaint(against(
Kamerling.(
The(latter,(with(the(approval(of(the(head(office(in(Hongkong,(dismissed%the%
respondent(on(October(23,(1953.((
She(charged(the(petitioner(and(Kamerling(with%unfair%labor%practice%
under%section%4%(a),%subsection%5%Republic%Act%No.%875%
Court(of(Industrial(Relations(held(the(petitioner(and(Kamerling(guilty(
thereof(and(ordered(the(respondent's(reinstatement,(with(backpay(from(the(
date(of(her(dismissal.(The(petitioner(has(appealed(by(way(of(certiorari.(
%
ISSUE:%WON%Petitioner%is%guilty%of%ULP?%NO%
%
RATIO:%
The(pertinent(legal(provision(is(section(4((a),(subsection(5,(of(Republic(Act(
No.(875(which(reads(as(follows:((
o Sec.(4(Unfair(Labor(Practice,((a)(It(shall(be(unfair(practice(for(an(
employer:(.(.(.((5)(To(dismiss,(discharge,(or(otherwise(prejudice(or(
discriminate(against(an(employee(for(having(filed(charges(or(for(having(
given(or(
The(Court%of%Industrial%relations(has%construed(the(foregoing(as(
including(all%cases%where%an%employee%is%dismissed,(discharged(or(
otherwise(prejudiced(or(discriminated(against(by(reason(of(the(filing,(by(the(
latter(with(the(court(or(elsewhere(of(any(charge(against(his(employer.(
Section(4((a)(subsection(5,(is(part(of(the(Magna?Charta(of(Labor(which(has(
these(underlying(purposes:(
o 1(The(experience(under(Commonwealth(Act(No.(213(which(now(
regulates(the(subject,(has(shown(the(need%for%further%safeguards%to%
the%rights%of%workers%to%organize.((
o The(attached(bill(seeks(to(provide(these(safeguards,(following(the(
pattern(of(United(States((7(3(National(Labor(Relations(Act(with(
suitable(modifications(demanded(by(local(conditions.((Secs.(4?8.).(The(
bill(will(prevent%unfair%labor%practices(on(the(part(of(the(employers(
including(not(only(acts(of(anti?union(discrimination(but(also(those(
which(are(involved(in(the(making(of(company(unions.((

(
(
(
(
(
(
(

o The%bill%protects%the%workers%in%the%process%of%organization%and%
before%as%well%as%after%the%union%is%registered(with(the(Department(
of(Labor.((
The(provisions(of(sections(1(and(3(are(the(bases(for(the(protection(of(the(
laborers'(right(to(self?organization,(and(the(enumeration(in(section(4((of(
unfair(labor(practices),(are(nothing(more(than(a(detailed(description(of(an(
employer's(acts(that(may(interfere(with(the(right(to(self?organization(and(
collective(bargaining.(
The(American(courts,(in(interpreting(the(provision(of(the(Wagner(Act(
similar(to(section(4((a),(subsection(5,(said:((
o The(statute(goes(no(further(than(to%safeguard%the%right%of%employees%
to%self\organization%and%to%select%representatives(of(their(own(
choosing(for(collective(bargaining(or(other(mutual(protection(without(
restraint(or(coercion(by(their(employer.(That(is(fundamental(right.(
Employees(have(as(clear%a%right%to%organize%and%select%their%
representatives(for(lawful(purpose(as(the(respondent(has(to(organize(
its(business(and(select(its(own(officers(and(agents.((
Despite(the(employee's(right(to(self?organization,(the(employer(therefore(
still(retains(his(inherent(right(to(discipline(his(employees.(his(normal(
prerogative(to(hire(or(dismiss(them.(The(prohibition(is(directed(only(against(
the(use(of(the(right(to(employ(or(discharge(as(an(instrument(of(
discrimination,(interference(or(oppression(because(of(one's(labor(or(union(
activities.(
Under(subsection(5(of(section(4((a),(the(employee's((1)(having(filed(charges(
or((2)(having(given(testimony(or((3)(being(about(to(give(testimony,(are(
modified(by("under(this(Act"(appearing(after(the(last(item.(In%other%words,%
the%three%acts%must%have%reference%to%the%employees'%right%to%self\%
organization%and%collective%bargaining,(because(the(element(of(unfair(
labor(practice(is(interference(in(such(right.(
As(the(respondent's(dismissal(HAD%NO%RELATION%TO%UNION%ACTIVITIES(
and(the(charges(filed(by(her(against(the(petitioner(had(nothing(to(do(with(or(
did(not(arise(from(her(union(activities,(the(appealed(decision(is(hereby(
reversed(and(the(directness(for(the(respondent's(reinstatement(with(back(
pay(revoked.(

Ermidia% Mariano( v.% The% Royal% Interocean% Lines% (Koninkijke% Java\China\

Pakitvaart%Lijnen%N.%V.%Amsterdam)%and%J.%V.%Kamerling%
27(February(1961;(Padilla,(J.(

reconsideration( of( her( dismissal( from( HK( but( received( no( answer( to(
any(of(her(five(letters.((
4.

On( 19( December( 1953( the( company( finally( tendered( an( offer( of(
compromise(settlement(whereby(she(would(be(paid(the(sum(of(P3,108(
equivalent( to( six( months( salary,( provided( that( she( would( sign( a( quit(
claim.((

5.

Not( satisfied,( Mariano( brought( this( action( for( recovery( of( damages( in(
the(total(sum(of(P107,002.58(and(for(other(just(and(equitable(relief.(

6.

The(acting(chief(prosecutor(of(the(CIR,(at(the(Mariano's(instance,(filed(a(
complaint( for( ULP( for( having( dismissed( her( from( the( service( "for( the(
reason( that( she( wrote( a( letter( to( the( Managing( Directors( in( HK(
complaining( against( the( Kamerling's( attitude( and( behavior( to( her( and(
other( employees."( and( for( refusing( to( reinstate( her( to( her( former(
position.((

7.

CIR(found(the(company(guilty(and(ordered(reinstatement(with(backpay.(
Company(filed(this(petition(for(certiorari(to(review(with(the(SC.(

Digest(prepared(by(Jethro(Koon(
I.%Facts%(from%a%stipulation%of%facts)%
1.

Mariano( was( employed( by( Royal( Interocean( Lines( as( stenographer?

typist(and(filing(clerk(from(5(January(1932(until(the(outbreak(of(the(war(
on(8(December(1941,(when(the(employment(was(interrupted,(and(from(
1(March(1948(until(23(October(1953,(when(she(was(dismissed.(
At(the(time(of(her(dismissal,(she(was(receiving(a(basic(salary(of(
P312(and(a(high(cost(of(living(allowance(of(P206,(or(a(total(of(
P518(a(month.((

2.

On( 5( October( 1953( she( had( sent( a( letter( to( the( managing( directors( in(
HK,(coursed(through(its(manager(for(the(Phil.,(Kamerling,(complaining(
against( the( latter's( "inconsiderate( and( untactful( attitude"( towards( the(
employees(under(him(and(the(clients(in(the(Phil.((
On(19(October(1953(Kamerling(advised(Mariano(that(her(letter(
had(been(forwarded(to(the(managing(directors(of(the(appellant(
company(in(HK;((

Whether( the( company( was( guilty( of( unfair( labor( practice( in( having( dismissed(
the( Mariano( because( she( had( filed( charges( against( Kamerling( not( connected(
with(or(necessarily(arising(from(union(activities.(

In( view( of( the( contents( and( tenor( of( her( letter,( the( managing(
directors( believed( with( him( that( it( was( impossible( to( retain(
her;((

III.%Holding%

Despite(the(fact(that(they(were(justified(in(dismissing(her(and(
that( she( was( not( entitled( to( any( compensation,( out( of(
generosity( and( in( consideration( of( her( length( of( service,( the(
company( was( willing( to( grant( her( a( sum( equivalent( to( three(
months(salary;((
In( order( not( to( adversely( affect( her( chances( of( future(
employment( with( other( firms,( it( was( suggested( that( she( hand(
in(a(formal(letter(of(resignation(effective(31(October,(otherwise(
she( would( be( dismissed;( and( that( should( they( not( hear( from(
her( in( writing( until( noon( of( 23( October,( she( would( be(
considered(dismissed.((
3.

II.%Issues%

On( 23( October( 1953( Mariano( sent( a( letter( stating( that( she( was(
"compelled(to(hand(this(letter(of(resignation(severing(my(services(from(
the( Royal( Interocean( Lines( effective( October( 31st,( 1963,( much( to( my(
dislike(and(disappointment(after(being(in(their(employment(for(almost(
twenty?two( (22)( years".( However,( the( company( refused( to( accept( her(
letter( and( on( the( same( date( sent( a( letter( dismissing( her.( She( sought(

The( judgment( is( reversed,( but( the( company( is( ordered( to( pay( P3,108,( without(
interest.(No(pronouncements(as(to(costs.(
IV.%Ratio(
1.

4(a),(subsection(5,(of(RA(875(reads(as(follows:("It(shall(be(unfair(labor(
practice( for( an( employer( to( dismiss,( discharge,( or( otherwise( prejudice(
or( discriminate( against( an( employee( for( having( filed( charges( or( for(
having(given(or(being(about(to(give(testimony(under(this(Act."(

2.

Considering(the(policy(behind(the(enactment(of(the(statute,(it(is(readily(
discoverable( that( the( provisions( of( 1( and( 3( are( the( bases( for( the(
protection( of( the( laborers( right( to( self?organization,( and( the(
enumeration(in(4((of(unfair(labor(practices),(are(nothing(more(than(a(
detailed( description( of( an( employer's( acts( that( may( interfere( with( the(
right(of(self?organization(and(collective(bargaining.(

3.

Despite( the( right( to( self?organization,( the( employer( still( retains( his(
inherent( right( to( discipline( his( employees,( his( normal( prerogative( to(
hire(or(dismiss(them.(The(prohibition(is(directed(only(against(the(use(of(
the( right( to( employ( or( discharge( as( an( instrument( of( discrimination,(
interference(or(oppression(because(of(one's(labor(or(union(activities.((

4.

The(employee's((1)(having(filed(charges(or((2)(having(given(testimony(
or((3)(being(about(to(give(testimony,(are(modified(by("under(this(Act"(
appearing(after(the(last(item.(The(three(acts(must(have(reference(to(the(
employee's(right(to(self?organization(and(collective(bargaining,(because(
ULP( is( interference( in( such( right.( It( would( be( redundant( to( repeat(
"under( this( Act"( after( each( enumeration( connected( by( the( disjunctive(
conjunction("or."(

5.

Considering( that( the( dismissal( is( "not( connected( with( or( necessarily(
arising( from( union( activities"( and( does( not( constitute( unfair( labor(
practice,(Mariano(has(no(cause(of(action.(Nevertheless,(as(the(dismissal(
was(without(cause,(because(her(inefficiency(as(the(ground(or(reason(for(
her( dismissal( as( claimed( is( belied( by( the( successive( increases( of( her(
compensation,( the( amount( of( P3,108( for( six( months( salary( should( be(
paid(to(her.(

(
(
(
FRANCISCO%SALUNGA%v.%COURT%OF%INDUSTRIAL%RELATIONS%
September$27,$1967$|$C.J.$Concepcion$
By:$Perry$
(
SUMMARY:%
The(petitioner(dissatisfied(with(the(way(the(Union(was(being(run(due(to,(what(
he( believed( to( be,( several( illegal( or( irregular( disbursements( of( union( funds,(
tendered(his(resignation(from(the(Union.(The(Union(then(informed(the(Company(
of(such(resignation(and(sought(to(compel(the(Company(to(dismiss(the(petitioner(
by( virtue( of( his( resignation( from( the( Union.( The( Company( then( told( the(
petitioner(that(resigning(from(the(Union(would(result(in(the(termination(of(his(
employment.(Petitioner(then(wrote(to(the(Union(seeking(to(withdraw(or(revoke(
his( resignation.( However,( this( withdrawal( of( resignation( was( not( accepted( by(
the( Union,( which( eventually( resulted( in( his( dismissal.( Petitioner( then( filed( an(
ULP(case(against(the(Union,(the(Union(officers(and(the(Company.(
(
The(SC(found(the(Union(and(the(Union(officers(guilty(of(ULP(and(acquitted(the(
Company.(It(ruled(that(generally,(membership(in(voluntary(associations(cannot(
be(compelled(by(the(state.(However,(with(regard(to(labor(unions,(the(privilege(of(
choosing( its( members( is( qualified( because( it( is( imbued( with( public( interest.(
Therefore,(the(courts(may(compel(the(Union(to(reinstate(Petitioner(as(a(member(
of(the(Union.(
%
FACTS:%
The( petitioner( was( an( employee( of( the( Company( and( a( member( of( the( Union.(
Both( parties,( entered( into( a( CBA( which( provided,( among( others,( a( closed?shop(

agreement.(Sometime(in(1961,(the(petitioner,(due(to(his(dissatisfaction(with(the(
way( the( Union( was( being( run,( filed( his( resignation( from( the( Union,( which(
accepted( it.( The( Union( then( transmitted( it( to( the( Company( and( requested( the(
immediate( implementation( of( the( closed?shop( agreement.( The( Company( then(
informed(the(petitioner(that(his(resignation(from(the(Union(would(result(in(the(
termination(of(his(employment.(Upon(being(informed(of(that(fact,(the(petitioner(
sought(to(withdraw(his(resignation(from(the(Union.(This(request(for(withdrawal(
was(however,(not(accepted(by(the(Union(and(it(sought(to(compel(the(company(
to(terminate(the(employment(of(the(petitioner.(
(
The( petitioner( appealed( the( decision( of( the( Union( of( not( accepting( the(
withdrawal(of(his(resignation(to(the(National(President(but(his(appeal(was(not(
given( due( course.( Eventually,( the( petitioner( was( dismissed( causing( him( to( file(
ULP( charges( against( the( Union,( its( officers,( and( the( Company.( The( trial( judge(
found( all( parties( charged( guilty( of( ULP.( On( appeal( to( the( CIR( en$ banc,( the(
decision(of(the(trial(judge(was(reversed.(Hence,(this(petition(with(the(SC.(
(
%
ISSUE%/%HELD:%
WON( the( Courts( may( compel( the( Union( to( reinstate( the( petitioner( as( its(
member.(YES.(
%
RULING:%
Although(generally,(a(State(may(not(compel(ordinary(voluntary(associations(to(
admit(thereto(any(given(individual,(because(membership(therein(may(be(
accorded(or(withheld(as(a(matter(of(privilege,(the(rule(is(qualified(in(respect(of(
labor(unions(holding(a(monopoly(in(the(supply(of(labor,(either(in(a(given(locality,(
or(as(regards(a(particular(employer(with(which(it(has(a(closed?shop(agreement.(
(
The(closed?shop(agreement(and(the(union(shop(cause(the(admission(
requirements(of(the(trade(union(to(become(affected(with(public(interest.(
Likewise,(a(closed?shop,(or(union(shop,(or(maintenance(of(membership(clauses,(
cause(the(administration(of(discipline(by(unions(to(be(affected(with(public(
interest.(
(
Therefore,(such(unions(are(not(entitled(to(arbitrarily(exclude(qualified(
applicants(for(membership(and(a(closed?shop(provision(would(not(justify(the(
employer(in(discharging,(or(a(union(in(insisting(upon(the(discharge(of(and(
employee(whom(the(union(thus(refuses(to(admit(to(membership,(without(any(
reasonable(ground.(Needless(to(say,(if(said(unions(may(be(compelled(to(
admit(new(members,(who(have(the(requisite(qualifications,(with(more(reason(
may(the(law(and(the(courts(exercise(the(coercive(power(when(the(employee(
involved(is(a(long$standing$union$member,(who,(owing(to(provocations(of(union(
officers,(was(impelled(to(tender(his(resignation,(which(he(forthwith(withdrew(or(
revoked.(Surely,(he(may,(at(least,(invoke(the(rights(of(those(who(seek(admission(
for(the$first(time,(and(cannot(arbitrarily(be(denied(readmission.(

(
As(to(the(Company,(the(court(found(that(the(former(is(not(guilty(of(ULP(because(
it(deferred(the(discharge(of(petitioner(and(informed(him(of(the(consequences(of(
his(actions.(The(Company(gave(due(regard(to(the(petitioners(plight(and(was(not(
unfair(to(the(petitioner.(It(did(not(merely(show(commendable(understanding(
and(sympathy(towards(the(petitioner(but(even(tried(to(help(him.(The(Company(
cannot(be(blamed(for(the(petitioners(dismissal(as(it(had(the(right(to(rely(on(the(
decision(of(the(Union(of(not(accepting(the(readmission(of(the(petitioner.(
(
WHEREFORE,(the(appealed(resolution(of(the(CIR(en$banc$is(REVERSED.(
(
(
(
(
(
(
(
(
HACIENDA%FATIMA%and/or%VILLEGAS%&%SEGURA%v%NATIONAL%FEDERATION%
OF%SUGARCANE%WORKERS%(NFSW)%
January(28,(2003|Panganiban|(By(Ron(San(Juan(
Summary:%
Hacienda(workers(organized(themselves(into(a(union.((Petitioners(refused(to(sit(
down(with(the(union(for(the(purpose(of(collective(bargaining.(Instead,(
petitioners(did(not(give(the(workers(work(for(more(than(a(month.((Union(filed(
for(illegal(dismissal(and(ULP.(SC(held(that(the(workers(are(regular(employees,(
hence,(can(only(be(dismissed(for(cause.((SC(also(held(that(the(acts(of(petitioners(
constitute(ULP.(
Doctrine:%
The(respondents(refusal(to(bargain,(to(their(acts(of(economic(inducements(
resulting(in(the(promotion(of(those(who(withdrew(from(the(union,(the(use(of(
armed(guards(to(prevent(the(organizers(to(come(in,(and(the(dismissal(of(union(
officials(and(members,(one(cannot(but(conclude(that(respondents(did(not(want(a(
union(in(their(hacienda(a(clear(interference(in(the(right(of(workers(to(self?
organization.(
Facts:%

Petitioners(did(not(look(with(favor(workers(having(organized(themselves(
into(a(union.(Thus,(when(complainant(union(NFSW(was(certified(as(the(
collective(bargaining(representative(in(the(certification(elections,(petitioner(
under(the(pretext(that(the(result(was(on(appeal,(refused(to(sit(down(with(
the(union(for(the(purpose(of(entering(into(a(CBA.(Moreover,(the(workers(
including(complainants(herein(were(not(given(work(for(more(than(one(
month.(In(protest,(complainants(staged(a(strike(which(was(however(settled(
upon(the(signing(of(a(MOA.(
However,(alleging(that(NFSW(failed(to(load(the(fifteen(wagons,(petitioners(
reneged(on(its(commitment(to(sit(down(and(bargain(collectively.(Instead,(
petitioners(employed(all(means(including(the(use(of(private(armed(guards(
to(prevent(the(organizers(from(entering(the(premises.(
Moreover,(starting(September(1991,(petitioners(did(not(any(more(give(work(
assignments(to(the(complainants(forcing(the(union(to(stage(a(strike.((But(
due(to(the(conciliation(efforts(by(the(DOLE,(another(MOA(was(signed(by(the(
complainants(and(petitioners(which(provides.(
Pursuant(thereto,(the(parties(subsequently(met(for(a(Conciliation(Meeting.((
When(petitioners(again(reneged(on(its(commitment,(complainants(filed(the(
present(complaint(for(illegal(dismissal(and(ULP.(
Petitioners:(argued(respondents(refused(to(work(and(being(choosy(in(the(
kind(of(work(they(have(to(perform.((They(are(seasonal(workers,(not(regular.(
LA(ruled(for(petitioners.((NLRC(reversed.(CA(affirmed(NLRC.(

Issues/Held:%
Whether(or(not(the(respondent(workers(were(illegally(dismissed.((YES)(
Respondents(were(regular(employees(as(provided(by(Article(280(of(the(Labor(
Code.((For(respondents(to(be(excluded(from(those(classified(as(regular(
employees,(it(is(not(enough(that(they(perform(work(or(services(that(are(seasonal(
in(nature.(They(must(have(also(been(employed(only$for$the$duration$of$one$
season.(The(evidence(proves(the(existence(of(the(first,(but(not(of(the(second,(
condition.(The(fact(that(respondents(repeatedly(worked(as(sugarcane(workers(
for(petitioners(for(several(years(is(not(denied(by(the(latter.(Evidently,(
petitioners(employed(respondents(for(more(than(one(season.(Therefore,(the(
general(rule(of(regular(employment(is(applicable.(
Herein(respondents,(having(performed(the(same(tasks(for(petitioners(every(
season(for(several(years,(are(considered(the(latters(regular(employees(for(their(
respective(tasks.(Petitioners(eventual(refusal(to(use(their(services(??(even(if(they(
were(ready,(able(and(willing(to(perform(their(usual(duties(whenever(these(were(
available(??(and(hiring(of(other(workers(to(perform(the(tasks(originally(assigned(
to(respondents(amounted(to(illegal(dismissal(of(the(latter.(

Having(failed(to(provide(just(cause(for(termination,(petitioners(illegally(
dismissed(the(respondents.(
Whether(or(not(petitioners(were(guilty(of(ULP.((YES)(
Indeed,(from(respondents(refusal(to(bargain,(to(their(acts(of(economic(
inducements(resulting(in(the(promotion(of(those(who(withdrew(from(the(union,(
the(use(of(armed(guards(to(prevent(the(organizers(to(come(in,(and(the(dismissal(
of(union(officials(and(members,(one(cannot(but(conclude(that(respondents(did(
not(want(a(union(in(their(hacienda(a(clear(interference(in(the(right(of(workers(to(
self?organization.(
The( finding( of( unfair( labor( practice( done( in( bad( faith( carries( with( it( the(
sanction(of(moral(and(exemplary(damages.((
(
(
Progressive%Development%Corp.%vs%CIR%
November$29,$1977$|$Fernandez,$J.$
Sam$$
$
SUMMARY:%Complainant?employees(that(were(members(of(ACEA(were(
discriminated(against(by(PDC(by(not(giving(them(their(working(schedules,(
lessening(their(number(of(working(days(and(eventually(dismissing(them(from(
their(employment,(because(of(their(refusal(to(disaffiliate(from(ACEA(and(join(the(
Progressive(Employees(Union((a(union(allegedly(setup(by(PDC).((%
(
(
FACTS:%
In(September(1962,(Araneta(Coliseum(Employees(Association((ACEA)(a(
legitimate(labor(organization(in(behalf(of(forty?eight((48)(members,(instituted(a(
case(ULP(for(unfair(labor(practice(in(the(Court(of(Industrial(Relations(against(
Progressive(Development(Corporation((PDC),(a(domestic(business(entity(
operating(the(Araneta(Coliseum,(Jorge(Araneta,(Judy(A.(Roxas,(Manuel(B.(Jover(
and(Ramon(Llorente,(as(officers(of(the(corporation(PDC(and(Progressive(
Employees(Union((PEU),(a(labor(organization(existing(in(the(PDC.(
(
The(complaint(alleged(that(the(PDC,(through(its(officers,(initiated(a(move(to(
disauthorize(the(counsel(of(the(complainant(ACEA(from(appearing(in(a(union(
conference(with(the(respondents,(petitioners(herein;(that(the(supervisors(of(
PDC(encouraged,(and(assisted(in,(the(formation(of(the(Progressive(Employees(
Union((PEU)(and(coerced(the(employees,(particularly(the(individual(
complainants,(to(disaffiliate(from(the(complainant(union(and(to(affiliate(with(the(
PEU;(that(in(July(and(August(1962(the(respondents,(petitioners(herein,(
discriminated(against(the(individual(complainants(by(either(not(giving(them(

their(working(schedules,(lessening(their(number(of(working(days(and(eventually(
dismissing(them(from(their(employment,(because(of(their(refusal(to(disaffiliate(
from(their(union(and(join(the(Progressive(Employees(Union.((
(
PDC:(the(individual(complainants(were(merely(casuals(or(temporary(employees(
and(their(services(depended(on(the(availability(of(work(as(ushers,(usherettes,(
guards(and(janitors(when(there(were(shows,(performances(or(exhibits(at(the(
Araneta(Coliseum.(They(alleged(that(they(did(not(interfere(with(the(complainant(
union(and(in(fact(they(met(and(conferred(with(said(union's(counsel;(that(they(
did(not(initiate(nor(assist(the(PEU;(that(they(did(not(discriminate(against(the(
individual(complainants(nor(dismiss(them(as(said(complainants(were(only(
casuals(or(temporary(employees.((
(
Union:(Denied(that(the(officers(and(supervisors(of(the(corporation(PDC(initiated(
and(assisted(in(its(formation(and(claimed(that(its(organization(is(the(joint(efforts(
of(the(overwhelming(majority(of(the(employees(and(laborers(of(the(corporation(
PDC,(free(from(any(undue(influence,(interference(and/or(intimidation(from(any(
party.(The(PEU(claimed(that(the(institution(of(the(unfair(labor(practice(case(by(
the(complainants(is(a(desperate(attempt(to(unduly(delay(the(proceedings(for(
certification(election.(
(
CIR:(found(PDC(guilty(of(ULP(
%
ISSUES/HELD:%
W/N(PDC(was(guilty(of(Unfair(Labor(Practices((through(their(union(busting(
activites)?(YES.(((
(
RATIO:%
It(appears(that(the(individual(complainants,(during(show(days,(were(always(
scheduled(to(work(until(June(1962(when(they(were(not(included(in(the(schedule(
anymore.(This(virtually(amounted(to(dismissal,(without(prior(notice.(Their(not(
being(included(in(the(list(of(schedule(since(June(1962(could(only(be(the(result(of(
petitioners'(earlier(threat(of(dismissal(should(said(complainants(refuse(to(heed(
petitioners'(admonition(for(them(to(resign(from(the(ACEA.(
(
From(the(facts(of(record,(it(is(clear(that(the(individual(complainants(were(
dismissed(because(they(refused(to(resign(from(the(Araneta(Coliseum(Employees(
Association(and(to(affiliate(with(the(Progressive(Employees(Union(which(was(
being(aided(and(abetted(by(the(Progressive(Development(Corporation.(
(
The(assertion(of(the(petitioner(Progressive(Development(Corporation(and(its(
officials(that(they(have(nothing(to(do(with(the(formation(of(the(Progressive(
Employees(Union(is(not(supported(by(the(facts(of(record.(
(
The(President(then(of(the(Progressive(Employees(Union(was(Jose(Generoso,(Jr.,(
Stage(Manager(of(the(Progressive(Development(Corporation.(The(stage(

Manager,(Generoso,(has(supervisory(power(over(the(twenty?two((22)(
employees(under(him.(Generoso(was(then(the(No.(2(man(in(the(Araneta(
Coliseum,(being(an(assistant(of(the(Director(of(said(Coliseum.(While(the(
Progressive(Employees(Union(was(allegedly(organized(on(June(26,(1962,(it(was(
only(on(July(11,(1962(that(its(existence(was(publicly(announced(when(the(
management(of(the(petitioner(corporation(refused(to(meet(with(the(Araneta(
Coliseum(Employees(Association.(The(Progressive(Employees(Union(never(
collected(dues(from(its(members(and(all(their(members(are(now(regular(
employees(and(are(still(working(in(the(construction(unit(of(the(Philippine(
Development(Corporation.(There(is(evidence(that(the(Progressive(Employees(
Union(became(inactive(after(the(death(of(Atty.(Reonista(the(former(counsel(of(
the(Progressive(Development(Corporation.(This(shows(that(the(Progressive(
Employees(Union(was(organized(to(camouflage(the(petitioner(corporation's(
dislike(for(the(Araneta(Coliseum(Employees(Association(and(to(stave(off(the(
latter's(recognition.(
((

Manila!Mandarin!Employees!Union!v.!NLRC,!154!SCRA!368!
Ilaw%at%Buklod%ng%Manggagawa%(IBM)%v.%NLRC%
Narvasa,$J.$
Unfair$Labor$Practice$
(
FACTS(

The(controversy(at(bar(had(its(origin(in(the("wage(distortions"(affecting(
the(employees(of(respondent(San(Miguel(Corporation(allegedly(caused(
by(Republic(Act(No.(6727,(otherwise(known(as(the(Wage(
Rationalization(Act.(
(Upon(the(effectivity(of(the(Act(on(June(5,(1989,(the(union(known(as(
"Ilaw$at$Buklod$Ng$Manggagawa$(IBM)"((said(to(represent(4,500(
employees(of(San(Miguel(Corporation,(presented(to(the(company(a(
"demand"(for(correction(of(the("significant(distortion(in(.(.(.((the(
workers')(wages."((
o In(that("demand,"(the(Union(explicitly(invoked(Section(4((d)(of(
RA(6727(which(reads(as(follows:((d)(.(.(.(Where(the(application(
of(the(increases(in(the(wage(rates(under(this(Section(results(in(
distortions(as(defined(under(existing(laws(in(the(wage(
structure(within(an(establishment(and(gives(rise(to(a(dispute(
therein,(such(dispute(shall(first(be(settled(voluntarily(between(
the(parties(and(in(the(event(of(a(deadlock,(the(same(shall(be(
finally(resolved(through(compulsory(arbitration(by(the(
regional(branches(of(the(National(Labor(Relations(Commission(
(NLRC)(having(jurisdiction(over(the(workplace.(It(shall(be(
mandatory(for(the(NLRC(to(conduct(continuous(hearings(and(
decide(any(dispute(arising(under(this(Section(within(twenty(

(20)(calendar(days(from(the(time(said(dispute(is(formally(
submitted(to(it(for(arbitration.(The(pendency(of(a(dispute(
arising(from(a(wage(distortion(shall(not(in(any(way(delay(the(
applicability(of(the(increase(in(the(wage(rates(prescribed(under(
this(Section.(
Union(claims(that("demand(was(ignored(
When(SMC(rejected(the(reduced(proposal(of(the(UNION,(the(members(,(
on(their(own(accord,(refused(to(render(overtime(services(
The(workers(involved(also(issued(a(joint(notice:(SAMA?SAMANG(
PAHAYAG:(KAMING(ARAWANG(MANGGAGAWA(NG(POLO(BREWERY(
PAWANG(KASAPI(NG(ILAW(AT(BUKLOD(NG(MANGGAGAWA((IBM)(AY(
NAGKAISANG(NAGPASYA(NA(IPATUPAD(MUNA(ANG(EIGHT(HOURS(
WORK(SHIFT(PANSAMANTALA(HABANG(HINDI(IPINATUTUPAD(NG(
SMC(MANAGEMENT(ANG(TAMANG(WAGE(DISTORTION.(
The(Union's(position(was(that(the(workers'(refuse("to(work(beyond(
eight((8)(hours(everyday(starting(October(16,(1989"(as(a(legitimate(
means(of(compelling(SMC(to(correct("the(distortion(in(their(wages(
brought(about(by(the(implementation(of(the(said(laws((R.A.(6640(and(
R.A.(6727)(to(newly?hired(employees.((
o That(decision(to(observe(the("eight(hours(work(shift"(was(
implemented(on(October(16,(1989(by("some(800(daily?paid(
workers(,all(members(of(IBM(.(
o This(abandonment(of(the(long?standing(schedule(of(work(and(
the(reversion(to(the(eight?hour(shift(apparently(caused(
substantial(losses(to(SMC.(These(losses(occurred(despite(such(
measures(taken(by(SMC(as(organizing("a(third(shift(composed(
of(regular(employees(and(some(contractuals,"(and(appeals("to(
the(Union(members,(through(letters(and(memoranda(and(
dialogues(with(their(plant(delegates(and(shop(stewards,"(to(
adhere(to(the(existing(work(schedule.(
SMC(filed(with(the(Arbitration(Branch(of(the(National(Labor(Relations(
Commission(a(complaint(against(the(Union(and(its(members("to(declare(
the(strike(or(slowdown(illegal"(and(to(terminate(the(employment(of(the(
union(officers(and(shop(stewards.((
Then(on(December(8,(1989,(on(the(claim(that(its(action(in(the(
Arbitration(Branch(had(as(yet("yielded(no(relief,"(SMC(filed(another(
complaint(against(the(Union(and(members(thereof,(this(time(directly(
with(the(National(labor(Relations(Commission,("to(enjoin(and(restrain(
illegal(slowdown(and(for(damages,(with(prayer(for(the(issuance(of(a(
cease?and?desist(and(temporary(restraining(order.(TRO(was(issued,(but(
case(remained(pending.(

(
ISSUE/RULING%
Whether% the% workers'% abandonment% of% the% regular% work% schedule% and%

their% deliberate% and% wilful% reductoon% of% the% plant's% production% efficiency%
is%a%slowdown,%which%is%an%illegal%and%unprotected%concerted%activity.%YES%
%

Among(the(rights(guaranteed(to(employees(by(the(Labor(Code(is(that(of(
engaging(in(concerted(activities(in(order(to(attain(their(legitimate(
objectives.(Article(263(of(the(Labor(Code,(as(amended,(declares(that(in(
line(with("the(policy(of(the(State(to(encourage(free(trade(unionism(and(
free(collective(bargaining,(.(.((w)orkers(shall(have(the(right(to(engage(in(
concerted(activities(for(purposes(of(collective(bargaining(or(for(their(
mutual(benefit(and(protection."(
(A(similar(right(to(engage(in(concerted(activities(for(mutual(benefit(and(
protection(is(tacitly(and(traditionally(recognized(in(respect(of(
employers.(
The(more(common(of(these(concerted(activities(as(far(as(employees(are(
concerned(are:(strikes((the(temporary(stoppage(of(work(as(a(result(of(
an(industrial(or(labor(dispute;(picketing((the(marching(to(and(fro(at(
the(employer's(premises,(usually(accompanied(by(the(display(of(
placards(and(other(signs(making(known(the(facts(involved(in(a(labor(
dispute;(and(boycotts((the(concerted(refusal(to(patronize(an(
employer's(goods(or(services(and(to(persuade(others(to(a(like(refusal.((
On(the(other(hand,(the(counterpart(activity(that(management(may(
licitly(undertake(is(the(lockout((the(temporary(refusal(to(furnish(work(
on(account(of(a(labor(dispute,(In(this(connection,(the(same(Article(263(
provides(that(the("right(of(legitimate(labor(organizations(to(strike(and(
picket(and(of(employer(to(lockout,(consistent(with(the(national(interest,(
shall(continue(to(be(recognized(and(respected."((
The(legality(of(these(activities(is(usually(dependent(on(the(legality(of(the(
purposes(sought(to(be(attained(and(the(means(employed(therefor.(
It(goes(without(saying(that(these(joint(or(coordinated(activities(may(be(
forbidden(or(restricted(by(law(or(contract.(In(the(particular(instance(of(
"distortions(of(the(wage(structure(within(an(establishment"(resulting(
from("the(application(of(any(prescribed(wage(increase(by(virtue(of(a(law(
or(wage(order,"(Section(3(of(Republic(Act(No.(6727(prescribes(a(specific,(
detailed(and(comprehensive(procedure(for(the(correction(thereof,(
thereby(implicitly(excluding(strikes(or(lockouts(or(other(concerted(
activities(as(modes(of(settlement(of(the(issue.((
o The(provision(states(that((.(.(the(employer(and(the(union(shall$
negotiate(to(correct(the(distort?ions.(Any(dispute(arising(from(
wage(distortions(shall(be(resolved(through(the(grievance$
procedure$under$their$collective$bargaining$agreement(and,(if(it(
remains(unresolved,(through(voluntary$arbitration.(Unless(
otherwise(agreed(by(the(parties(in(writing,(such(dispute(shall(
be(decided(by(the(voluntary(arbitrator(or(panel(of(voluntary(
arbitrators(within(ten((10)(calendar(days(from(the(time(said(

dispute(was(referred(to(voluntary(arbitration.(In(cases(where(
there(are(no(collective(agreements(or(recognized(labor(unions,(
the(employers(and(workers(shall(endeavor(to(correct(such(
distortions.(Any(dispute(arising(therefrom(shall(be(settled$
through$the$National$Conciliation$and$Mediation$Board(and,(if(it(
remains(unresolved(after(ten((10)(calendar(days(of(
conciliation,(shall(be(referred$to$the$appropriate$branch$of$the$
National$Labor$Relations$Commission$(NLRC).(It(shall(be(
mandatory(for(the(NLRC(to(conduct(continuous(hearings(and(
decide(the(dispute(within(twenty((20)(calendar(days(from(the(
time(said(dispute(is(submitted(for(compulsory(arbitration.(The(
pendency(of(a(dispute(arising(from(a(wage(distortion(shall$not$
in$any$way$delay$the$applicability$of$any$increase$in$prescribed$
wage$rates(pursuant(to(the(provisions(of(law(or(Wage(Order.(x(
x(x(((((((((((x(x(x((((((((((x(x(x(
o The(legislative(intent(that(solution(of(the(problem(of(wage(
distortions(shall(be(sought(by(voluntary(negotiation(or(
abitration,(and(not(by(strikes,(lockouts,(or(other(concerted(
activities(of(the(employees(or(management,(is(made(clear(in(the(
rules(implementing(RA(6727(issued(by(the(Secretary(of(Labor(
and(Employment12(pursuant(to(the(authority(granted(by(
Section(13(of(the(Act.13(Section(16,(Chapter(I(of(these(
implementing(rules,(after(reiterating(the(policy(that(wage(
distortions(be(first(settled(voluntarily(by(the(parties(and(
eventually(by(compulsory(arbitration,(declares(that,("Any$issue$
involving$wage$distortion$shall$not$be$a$ground$for$a$
strike/lockout."(
Moreover,(the(collective(bargaining(agreement(between(the(SMC(and(
the(Union(also(prescribes(a(similar(eschewal(of(strikes(or(other(similar(
or(related(concerted(activities(as(a(mode(of(resolving(disputes(or(
controversies,(generally,(said(agreement(clearly(stating(that(settlement(
of("all(disputes,(disagreements(or(controversies(of(any(kind"(should(be(
achieved(by(the(stipulated(grievance(procedure(and(ultimately(by(
arbitration.((
o The(Union(was(thus(prohibited(to(declare(and(hold(a(strike(or(
otherwise(engage(in(non?peaceful(concerted(activities(for(the(
settlement(of(its(controversy(with(SMC(in(respect(of(wage(
distortions,(or(for(that(matter;(any(other(issue("involving(or(
relating(to(wages,(hours(of(work,(conditions(of(employment(
and/or(employer?employee(relations."((
o The(partial(strike(or(concerted(refusal(by(the(Union(members(
to(follow(the(five?year?old(work(schedule(which(they(had(
therefore(been(observing,(resorted(to(as(a(means(of(coercing(
correction(of("wage(distortions,"(was(therefore(forbidden(by(
law(and(contract(and,(on(this(account,(illegal.(

Case$remanded.$

$
$
SMC.$v.$NLRC,$304$SCRA$1$

San$ Miguel$ Corporation$ v.$ NLRC,$ Ilaw$ at$ Buklod$ ng$ Manggagawa$
(IBM)$
G.R.!No.!119293!
June!10,!2003!
Azcuna,!J.!
!
FACTS:$
Petitioner!SMC!and!respondent!IBM,!the!exclusive!bargaining!
agent! of! petitioners! dailyLpaid! rank! and! file! employees,!
executed! a! CBA! under! which! they! agreed! to! submit! all!
disputes! to! grievance! and! arbitration! proceedings.7! It! also!
included! a! mutually! enforceable! noLstrike! noLlockout!
agreement.8$
$
April!11,!1994!!IBM,!through!its!VP!Colomeda,!filed!with!the!
NCMB! a! notice! of! strike! against! petitioner! for! allegedly!
committing:! (1)! illegal! dismissal! of! union! members,! (2)! illegal!
transfer,!(3)!violation!of!CBA,!(4)!contracting!out!of!jobs!being!
performed! by! union! members,! (5)! laborLonly! contracting,! (6)!
harassment! of! union! officers! and! members,! (7)! nonL
recognition!of!dulyLelected!union!officers,!and!(8)!other!acts!of!
unfair!labor!practice.$
$
Next!day,!IBM!filed!another!notice!of!strike,!this!time!though!
its!President!Galvez!raising!similar!ground.$
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
!
!

Galvez!group!requested!the!NCMB!to!consolidate!its!notice!of!
strike! with! that! of! the! Colomeda! group,! to! which! the! latter!
opposed,! alleging! that! Galvez! lacks! authority! in! filing! the!
same.$
$
Petitioner! filed! a! Motion! for! Severance! of! Notices! of! Strike!
with!Motion!to!Dismiss,!on!the!grounds!that!the!notices!raised!
nonLstrikeable!issues!and!that!they!affected!four!corporations!
which!are!separate!and!distinct!from!each!other.$

NCMB!Director!Ubaldo!found!that!the!real!issues!involved!are!
nonLstrikeable! grounds.! He! issued! an! order! converting! their!
notices!of!strike!into!preventive!mediation.$

May!16,!1994!!Colomeda!group!filed!with!the!NCMB!a!notice!
of! holding! a! strike! vote.! This! was! opposed! by! petitioner.!
Colomeda! group! notified! the! NCMB! of! the! results! of! their!
strike! vote,! which! favored! the! holding! of! a! strike.! The! strike!
paralyzed! the! operations! of! petitioner,! causing! it! losses!
allegedly!worth!P29.98!M!in!daily!lost!production.$

May!23,!1994!!Galvez!group!filed!its!second!notice!of!strike.!
NCMB!however!found!the!grounds!to!be!mere!amplifications!
of!those!alleged!in!the!first!notice.$
$
Petitioner! filed! with! the! NLRC! a! Petition! for! Injunction.! NLRC!
resolved!to!issue!a!TRO!directing!free!ingress!and!egress!from!
petitioners! plants,! without! prejudice! to! the! unions! right! to!
peaceful! picketing! and! continuous! hearings! on! the! injunction!
case.$
$
Petitioner!entered!into!a!Memorandum!of!Agreement!(MOA)!
with! IBM,! calling! for! a! lifting! of! the! picket! lines! and!
resumption!of!work!in!exchange!of!good!faith!talks.!The!MOA,!
signed!in!the!presence!of!DOLE!officials,!expressly!stated!that!
cases! filed! in! relation! to! their! dispute! will! continue! and! will!

not!be!affected!in!any!manner!whatsoever!by!the!agreement.!
The!picket!lines!ended!and!work!was!then!resumed.$
$
November! 29,! 1994! ! NLRC! issued! the! challenged! decision,!
denying!SMCs!petition!for!injunction!for!lack!of!factual!basis.!
It!found!that!the!circumstances!at!the!time!did!not!constitute!
or!no!longer!constituted!an!actual!or!threatened!commission!
of!unlawful!acts.$
$
Hence,!this!petition.$
$

!
ISSUE:$
(1) WON! NLRC! gravely! abused! its! discretion! when! it! failed! to!
enforce,! by! injunction,! the! parties! reciprocal! obligations! to!
submit!to!arbitration!and!not!to!strike.!YES.!
(2) WON! NLRC! gravely! abused! its! discretion! in! withholding!
injunction! which! is! the! only! immediate! and! effective!
substitute! for! the! disastrous! economic! warfare! that!
arbitration!is!designed!to!avoid.!YES.!
!
HOLDING/RATIO:$

Article! 254! of! the! LC! provides! that! no! temporary! or!
permanent! injunction! or! restraining! order! in! any! case!
involving! or! growing! out! of! labor! disputes! shall! be! issued! by!
any! court! or! other! entity! except& as! otherwise! provided! in!
Articles!218!and!264.!!
!
o Under! the! first! exception,! Article! 218! (e)! of! the! Labor!
Code! expressly! confers! upon! the! NLRC! the! power! to!
enjoin!or!restrain!actual!and!threatened!commission!of!
any!or!all!prohibited!or!unlawful!acts,!or!to!require!the!
performance! of! a! particular! act! in! any! labor! dispute!
which,! if! not! restrained! or! performed! forthwith,! may!
cause! grave! or! irreparable! damage! to! any! party! or!

render!ineffectual!any!decision!in!favor!of!such!party.!!
!
o The!second!exception,!on!the!other!hand,!is!when!the!
labor! organization! or! the! employer! engages! in! any! of!
the!prohibited!activities!enumerated!in!Article!264.!
!

In!the!case!at!bar,!petitioner!sought!a!permanent!injunction!to!
enjoin! the! respondents! strike.! A! strike! is! considered! as! the!
most! effective! weapon! in! protecting! the! rights! of! the!
employees! to! improve! the! terms! and! conditions! of! their!
employment.! However,! to! be! valid,! a! strike! must! be! pursued!
within! legal! bounds.! One! of! the! procedural! requisites! that!
Article!263!of!the!Labor!Code!and!its!IRR!prescribe!is!the!filing!
of! a! valid! notice! of! strike! with! the! NCMB.! Imposed! for! the!
purpose!of!encouraging!the!voluntary!settlement!of!disputes,!
this! requirement! has! been! held! to! be! mandatory,! the! lack! of!
which!shall!render!a!strike!illegal.!
!
In! the! present! case,! NCMB! converted! IBMs! notices! into!
preventive!mediation!as!it!found!that!the!real!issues!raised!are!
nonLstrikeable.!Such!order!is!in!pursuance!of!the!NCMBs!duty!
to!exert!all!efforts!at!mediation!and!conciliation!to!enable!the!
parties! to! settle! the! dispute! amicably,! and! in! line! with! the!
state! policy! of! favoring! voluntary! modes! of! settling! labor!
disputes.! In! accordance! with! the! IRR! of! the! LC,! the! said!
conversion! has! the! effect! of! dismissing! the! notices! of! strike!
filed!by!respondent.!A!case!in!point!is!PAL&v.&Drilon,&where!the!
Court!declared!a!strike!illegal!for!lack!of!a!valid!notice!of!strike,!
in!view!of!the!NCMBs!conversion!of!the!notice!therein!into!a!
preventive!mediation!case.!!
!
Clearly,!therefore,!applying!the!aforecited!ruling!to!the!case!at!
bar,! when! the! NCMB! ordered! the! preventive! mediation,!
respondent! had! thereupon! lost! the! notices! of! strike! it! had!
filed.!Subsequently,!however,!it!still!defiantly!proceeded!with!

the!strike!while!mediation!was!ongoing,!and!notwithstanding!
the!letterLadvisories!of!NCMB!warning!it!of!its!lack!of!notice!of!
strike.!!
!
Such! disregard! of! the! mediation! proceedings! was! a! blatant!
violation! of! the! IRR,! which! explicitly! oblige! the! parties! to!
bargain! collectively! in& good& faith& and! prohibit! them! from!
impeding!or!disrupting!the!proceedings.!
!
The!NCMB!having!no!coercive!powers!of!injunction,!petitioner!
sought!recourse!from!the!public!respondent.!The!NLRC!issued!
a! TRO! only! for! free! ingress! to! and! egress! from! petitioners!
plants,!but!did!not!enjoin!the!unlawful!strike!itself.!It!ignored!
the!fatal!lack!of!notice!of!strike.!

Moreover!ruled!that!there!was!a!lack!of!factual!basis!in!issuing!
the!injunction.!Contrary!to!the!NLRCs!finding,!the!Court!finds!
that!at!the!time!the!injunction!was!being!sought,!there!existed!
a! threat! to! revive! the! unlawful! strike! as! evidenced! by! the!
flyers!then!being!circulated!by!the!IBMLNCR!Council!which!led!
the!union.!These!flyers!categorically!declared:!Ipaalala&nyo&sa&
management& na& hindi& iniaatras& ang& ating& Notice& of& Strike&
(NOS)& at& anumang& oras& ay& pwede& nating& muling& itirik& ang&
picket& line.& These! flyers! were! not! denied! by! respondent,! and!
were! dated! June! 19,! 1994,! just! a! day! after! the! unions!
manifestation! with! the! NLRC! that! there! existed! no! threat! of!
commission!of!prohibited!activities.!
!
Moreover,! it! bears! stressing! that! Article! 264(a)! of! the! Labor!
Code explicitly!states!that!a!declaration!of!strike!without!first!
having!filed!the!required!notice!is!a!prohibited!activity,!which!
may! be! prevented! through! an! injunction! in! accordance! with!
Article! 254.! Clearly,! public! respondent! should! have! granted!
the! injunctive! relief! to! prevent! the! grave! damage! brought!
about!by!the!unlawful!strike.!

!
Also! noteworthy! is! public! respondents! disregard! of!
petitioners! argument! pointing! out! the! unions! failure! to!
observe! the! CBA! provisions! on! grievance! and! arbitration.! In!
the!case!of!San&Miguel&Corp.&v.&NLRC,!we!ruled!that!the!union!
therein!violated!the!mandatory!provisions!of!the!CBA!when!it!
filed! a! notice! of! strike! without! availing! of! the! remedies!
prescribed!therein.!!
!
As! in! the! abovecited! case,! petitioner! herein! evinced! its!
willingness!to!negotiate!with!the!union!by!seeking!for!an!order!
from! the! NLRC! to! compel! observance! of! the! grievance! and!
arbitration! proceedings.! Respondent! however! resorted! to!
force!without!exhausting!all!available!means!within!its!reach.!
Such!infringement!of!the!aforecited!CBA!provisions!constitutes!
further! justification! for! the! issuance! of! an! injunction! against!
the!strike.!As!we!said!long!ago:!Strikes!held!in!violation!of!the!
terms! contained! in! a! collective! bargaining! agreement! are!
illegal!especially!when!they!provide!for!conclusive!arbitration!
clauses.! These! agreements! must! be! strictly! adhered! to! and!
respected!if!their!ends!have!to!be!achieved. !
!
As! to! petitioners! allegation! of! violation! of! the! noLstrike!
provision! in! the! CBA,! jurisprudence! has! enunciated! that! such!
clauses!only!bar!strikes!which!are!economic!in!nature,!but!not!
strikes!grounded!on!unfair!labor!practices.!The!notices!filed!in!
the! case! at! bar! alleged! unfair! labor! practices,! the! initial!
determination! of! which! would! entail! factLfinding! that! is! best!
left!for!the!labor!arbiters.!Nevertheless,!our!finding!herein!of!
the!invalidity!of!the!notices!of!strike!dispenses!with!the!need!
to!discuss!this!issue.!
!
The! Court! cannot! sanction! IBMs! brazen! disregard! of! legal!
requirements!imposed!purposely!to!carry!out!the!state!policy!
9

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
!

of!promoting!voluntary!modes!of!settling!disputes.!The!states!
commitment! to! enforce& mutual! compliance! therewith! to!
foster! industrial! peace! is! affirmed! by! no! less! than! our!
Constitution.! Trade! unionism! and! strikes! are! legitimate!
weapons!of!labor!granted!by!our!statutes.!But!misuse!of!these!
instruments! can! be! the! subject! of! judicial! intervention! to!
forestall!grave!injury!to!a!business!enterprise.!
!
$
$

Baptista%v%Villanueva%
July$31,$2013$|$Mendoza,$J.$
By:$AP$
$
SUMMARY:%

Petitioners(were(expelled(from(their(union(because(they(violated(a(provision(in(
their( Constitution( and( By?laws( which( prohibit( filing( of( case( in( court( before( all(
internal( remedies( are( exhausted.( They( were( expelled( from( the( union,( then(
terminated(by(RPN(pursuant(to(the(CBA(union(security(clause.(They(then(filed(a(
ULP( case( against( respondent.( LA( in( their( favour.( NLRC,( CA( and( SC( ruled( for(
respondents.(
(
DOCTRINE:%(4\fold%Test)%
Workers( and( employers( organizations( shall( have( the( right( to( draw( up( their(
constitutions(and(rules(to(elect(their(representatives(in(full(freedom,(to(organize(
their( administration( and( activities( and( to( formulate( their( programs;( RPNEUs(
Constitution( and( By?Laws( expressly( mandate( that( before( a( party( is( allowed( to(
seek( the( intervention( of( the( court,( it( is( a( pre?condition( that( he( should( have(
availed(of(all(the(internal(remedies(within(the(organization.(
(
FACTS:%
Petitioners( were( former( union( members( of( Radio( Phil( Network( Employees(
Union( (RPNEU)( which( was( the( SEBA( of( RPN( while( respondents( are( elected(
officers(and(members(of(the(same.(
(
(
Petitioners( filed( a( complaint( for( impeachment( of( their( union( president( before(
the( executive( board( of( RPN.( This( was( eventually( abandoned.( They( later( re?
lodged( the( impeachment( complaint,( this( time,( against( all( union( officers( and(
members( of( RPNEU( before( the( DOLE.( They( also( filed( various( petitions( for( an(
audit.(
(

3( complaints( were( later( filed( against( them( before( the( unions( Committee( on(
Grievance( and( Investigation( (Committee)( for( alleged( violation( of( the( unions(
Constitution(and(By?Law.(It(was(alleged,(inter(alia,(that(they(violated(Article(IX,(
Section(2.5(for(urging(or(advocating(that(a(member(start(an(action(in(any(court(
of(justice(or(external(investigative(body(against(the(Union(or(its(officer(without(
first( exhausting( all( internal( remedies( open( to( him( or( available( in( accordance(
with(the(CBL.(
(
After(investigation,(the(committee(recommended(their(expulsion(to(the(unions(
Board(of(Directors.(They(were(then(expelled.((
(
The(union(then(informed(RPN(of(the(expulsion(and(requested(the(management(
to( serve( them( notices( of( termination( in( compliance( with( their( CBAs( union(
security(clause.(They(were(then(terminated.(
(
Petitioner( filed( 3( complaints( for( ULP( against( respondents( questioning( their(
expulsion(from(the(union(and(their(subsequent(termination(from(employment.(
(
LA:( ruled( in( their( favour( and( adjudged( respondents( guilty( of( ULP( pursuant( to(
Article(249(a)(and((b)((of(the(Labor(Code.(It(clarified,(however,(that(only(union(
officers( of( the( union( should( be( held( responsible( so( it( exonerated( 6( of( original(
defendants(who(were(mere(union(members.(
NLRC:( reversed( LA.( It( dismissed( the( ULP( charge( for( lack( of( merit.( NLRC( found(
that( petitioners( filed( a( suit( calling( for( the( impeachment( of( the( officers( and(
members( of( the( Executive( Board( of( RPNEU( without( first( resorting( to( internal(
remedies(available(under(its(own(Constitution(and(By?Laws.(
CA:(affirmed.(
(
ISSUES/HELD:((
WON(respondents(are(guilty(of(ULP.(NO(
%
RATIO:%
(
ULP(concept(imbedded(in(article(247((of(LC.(
?(
commission(of(acts(that(transgress(the(workers(right(to(organize;(
?(
As(specified(in(Articles(248(and(249(of(the(Labor(Code,(the(prohibited(
acts(must(necessarily(relate(to(the(workers'(right(to(self?organization(and(to(the(
observance( of( a( CBA;( Absent( the( said( vital( elements,( the( acts( complained,(
although(seemingly(unjust,(would(not(constitute(ULP.(
(
Petitioners:( Procedure( that( should( have( been( followed( by( the( respondents( in(
resolving( the( charges( against( them( was( Article( XVII,( Settlement( of( Internal(
Disputes(of(their(Constitution(and(By?Laws,(specifically,(Section(232((
(
Said(rule(requires(members(to(put(their(grievance(in(writing(to(be(submitted(to(
their( union( president,( who( shall( strive( to( have( the( parties( settle( their(

differences(amicably.(Petitioners(maintain(that(any(form(of(grievance(would(be(
referred(only(to(the(committee(upon(failure(of(the(parties(to(settle(amicably(
%
%
SC:%Disagreed%
?(
Based( on( RPNEUs( Constitution( and( By?Laws,( the( charges( against(
petitioners( were( not( mere( internal( squabbles,( but( violations( that( demand(
proper( investigation( because,( if( proven,( would( constitute( grounds( for( their(
expulsion(from(the(union;(
?(
As( such,( Article( X( on( Investigation( Procedures( and( Appeal( Process(
where(any(charge(against(any(member(or(officer(shall(be(submitted(to(the(Board(
of( Directors( which( shall( refer( it( (if( necessary)( to( the( committee( which( shall(
forward(its(finding(and(recommendation(to(the(board,(was(properly(applied.(
(
Any( procedural( flaw( in( the( proceedings( before( the( Committee( deemed( cured(
when(petitioners(were(given(the(opportunity(to(be(heard;(
?(
In( administrative( proceedings,( the( filing( of( charges( and( giving(
reasonable( opportunity( for( the( person( so( charged( to( answer( the( accusations(
against(him(constitute(the(minimum(requirements(of(due(process;(
?(
Essence( of( due( process( is( simply( to( be( heard,( or( as( applied( to(
administrative(proceedings,(an(opportunity(to(explain(ones(side;(
%
Re:%Opportunity%to%personally%face%and%confront%accusers%
?(
Mere( absence( of( a( one?onone( confrontation( between( the( petitioners(
and( their( complainants( does( not( automatically( affect( the( validity( of( the(
proceedings(before(the(Committee.((
?(
Not(all(cases(necessitate(a(trial?type(hearing;(
%
No%ULP%
?(
Well(settled:(workers(and(employers(organizations(shall(have(the(right(
to( draw( up( their( constitutions( and( rules( to( elect( their( representatives( in( full(
freedom,( to( organize( their( administration( and( activities( and( to( formulate( their(
programs;(
?(
Here:( RPNEUs( Constitution( and( By?Laws( expressly( mandate( that(
before( a( party( is( allowed( to( seek( the( intervention( of( the( court,( it( is( a( pre?
condition( that( he( should( have( availed( of( all( the( internal( remedies( within( the(
organization;(
?(
Petitioners( were( found( to( have( violated( the( provisions( of( the( unions(
Constitution( and( By?Laws( when( they( filed( petitions( for( impeachment( against(
their( union( officers( and( for( audit( before( the( DOLE( without( first( exhausting( all(
internal(remedies(available(within(their(organization;(
o(
petitioners( expulsion( from( the( union( was( not( a( deliberate( attempt( to(
curtail(or(restrict(their(right(to(organize,(but(was(triggered(by(the(commission(of(
an( act,( expressly( sanctioned( by( Section( 2.5( of( Article( IX( of( the( unions(
Constitution(and(By?Laws;(
(

Onus%probandi%(for%ULP%charge%to%prosper)%rests%upon%the%party%alleging%it%
to%prove%or%substantiate%such%claims%by%the%requisite%quantum%of%evidence%
?(
In( labor( cases,( as( in( other( administrative( proceedings,( substantial(
evidence( or( such( relevant( evidence( as( a( reasonable( mind( might( accept( as(
sufficient(to(support(a(conclusion(is(required;(
?(
Indubitable( that( all( the( prohibited( acts( constituting( unfair( labor(
practice(should(materially(relate(to(the(workers'(right(to(self?organization;(
?(
Here:( petitioners( failed( to( discharge( the( burden( required( to( prove( the(
charge(of(ULP(against(the(respondents;(
o(
Petitioners( were( not( able( to( establish( how( they( were( restrained( or(
coerced(by(their(union(in(a(way(that(curtailed(their(right(to(self?organization.((
o(
The( records( likewise( failed( to( sufficiently( show( that( the( respondents(
unduly( persuaded( management( into( discriminating( against( petitioners.( other(
than( to( bring( to( its( attention( their( expulsion( from( the( union,( which( in( turn,(
resulted(in(the(implementation(of(their(CBA'(s(union(security(clause.(
(

T&H%Shopfitters%Corp.%V.%T&H%Shopfitters%Corp.%Workers%
Union10%
February$26,$2014|$MENDOZA,$J.$
By:$Justin$
$
SUMMARY:%(
(

(
FACTS:%
On( September( 7,( 2004,( the( T&H( Shopfitters( Corporation/( Gin( Queen(
Corporation( workers( union( (THS?GQ( Union)( filed( their( Complaint( for(
Unfair( Labor( Practice( (ULP)( by( way( of( union( busting,( and( Illegal(
Lockout,( with( moral( and( exemplary( damages( and( attorneys( fees,(
against(T&H(Shopfitters(Corporation((T&H(Shopfitters)(and(Gin(Queen(
Corporation(before(the(Labor(Arbiter((LA).(
1st( ( CAUSE:( In( their( desire( to( improve( their( working( conditions,(
respondents(and(other(employees(of(held(their(first(formal(meeting(on(
November(23,(2003(to(discuss(the(formation(of(a(union.(The(following(

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
10

!T!&!H!SHOPFITTERS!CORPORATION/GIN!QUEEN!CORPORATION,!STINNES!HUANG,!
BEN!HUANG!and!ROGELIO!MADRIAGA,!Petitioners,!!
vs.!
T!&!H!SHOPFITTERS!CORPORATION/GIN!QUEEN!WORKERS!UNION,!ELPIDIO!
ZALDIVAR,!DARI!OS!GONZALES,!WILLIAM!DOMINGO,!BOBBY!CASTILLO,!JIMMY!M.!
PASCUA,!GERMANO!M.!BAJO,!RICO!L.!MANZANO,!ALLAN!L.!CALLORINA,!ROMEO!
BLANCO,!GILBERT!M.!GARCIA,!CARLOS!F.!GERILLO,!EDUARDO!A.!GRANDE,!
EDILBRANDO!MARTICIO,!VIVENCIO!SUSANO,!ROLANDO!GARCIA,!JR.,!MICHAEL!
FABABIER,!ROWELL!MADRIAGA,!PRESNIL!TOLENTINO,!MARVIN!VENTURA,!
FRANCISCO!RIVARES,!PLACIDO!TOLENTINO!and!ROLANDO!ROMERO,!Respondents.!

day,(seventeen((17)(employees(were(barred(from(entering(petitioners(
factory( premises( located( in( Castillejos,( Zambales,( and( ordered( to(
transfer( to( T&H( Shopfitters( warehouse( at( Subic( Bay( Freeport( Zone(
(SBFZ)( purportedly( because( of( its( expansion.( Afterwards,( the( said(
seventeen( (17)( employees( were( repeatedly( ordered( to( go( on( forced(
leave(due(to(the(unavailability(of(work.(
Respondents( contended( that( the( affected( employees( were( not( given(
regular( work( assignments,( while( subcontractors( were( continuously(
hired(to(perform(their(functions.(Respondents(sought(the(assistance(of(
the( National( Conciliation( and( Mediation( Board.( Subsequently,( an(
agreement( between( petitioners( and( THS?GQ( Union( was( reached.(
Petitioners( agreed( to( give( priority( to( regular( employees( in( the(
distribution(of(work(assignments.(Respondents(averred,(however,(that(
petitioners( never( complied( with( its( commitment( but( instead( hired(
contractual( workers.( Instead,( Respondents( claimed( that( the( work(
weeks(of(those(employees(in(the(SBFZ(plant(were(drastically(reduced(to(
only(three((3)(days(in(a(month.(
2nd( CAUSE:( On( March( 24,( 2004,( THS?GQ( Union( filed( a( petition( for(
certification( election( and( an( order( was( issued( to( hold( the( certification(
election(in(both(T&H(Shopfitters(and(Gin(Queen.((
On( October( 10,( 2004,( petitioners( sponsored( a( field( trip( to( Iba,(
Zambales,( for( its( employees.( The( officers( and( members( of( the( THS?GQ(
Union(were(purportedly(excluded(from(the(field(trip.(On(the(evening(of(
the( field( trip,( a( certain( Angel( Madriaga,( a( sales( officer( of( petitioners,(
campaigned(against(the(union(in(the(forthcoming(certification(election.(
When(the(certification(election(was(scheduled(on(October(11,(2004,(the(
employees( were( escorted( from( the( field( trip( to( the( polling( center( in(
Zambales(to(cast(their(votes.(The(remaining(employees(situated(at(the(
SBFZ(plant(cast(their(votes(as(well.(Due(to(the(heavy(pressure(exerted(
by(petitioners,(the(votes(for(no(union(prevailed.(
3rD( CAUSE:( A( memorandum( was( issued( by( petitioner( Ben( Huang(
(Huang),( Director( for( Gin( Queen,( informed( its( employees( of( the(
expiration( of( the( lease( contract( between( Gin( Queen( and( its( lessor( in(
Castillejos,( Zambales( and( announced( the( relocation( of( its( office( and(
workers(to(Cabangan,(Zambales.((
When(the(respondents,(visited(the(site(in(Cabangan,(discovered(that(it(
was( a( talahiban( or( grassland.( The( said( union( officers( and( members(
were(made(to(work(as(grass(cutters(in(Cabangan,(under(the(supervision(
of(a(certain(Barangay(Captain(Greg(Pangan.(Due(to(these(circumstances,(
the(employees(assigned(in(Cabangan(did(not(report(for(work.(The(other(
employees( who( likewise( failed( to( report( in( Cabangan( were( meted( out(
with(suspension.(
In(its(defense,(Petitioners(also(stress(that(they(cannot(be(held(liable(for(
ULP( for( the( reason( that( there( is( no( employer?employee( relationship(
between(the(former(and(respondents.(Further,(Gin(Queen(avers(that(its(

decision( to( implement( an( enforced( rotation( of( work( assignments( for(
respondents(was(a(management(prerogative(permitted(by(law,(justified(
due(to(the(decrease(in(orders(from(its(customers,(they(had(to(resort(to(
cost( cutting( measures( to( avoid( anticipated( financial( losses.( Thus,( it(
assigned( work( on( a( rotational( basis.( It( explains( that( its( failure( to(
present( concrete( proof( of( its( decreasing( orders( was( due( to( the(
impossibility( of( proving( a( negative( assertion.( It( also( asserts( that( the(
transfer(from(Castillejos(to(Cabangan(was(made(in(good(faith(and(solely(
because(of(the(expiration(of(its(lease(contract(in(Castillejos.(It(was(of(the(
impression( that( the( employees,( who( opposed( its( economic( measures,(
were(merely(motivated(by(spite(in(filing(the(complaint(for(ULP(against(
it.(
(
ISSUES/HELD:(
1.(Whether%or%not%ULP%acts%were%committed%by%petitioners%against%
respondents.%
ULP(were(committed(by(petitioners(against(respondents.Petitioners(are(being(
accused(of((violations(of(paragraphs((a),((c),(and((e)(of(Article(257((formerly(
Article(248)(of(the(Labor(Code,13(to(wit:(
Article$257.$Unfair$labor$practices$of$employers.It$shall$be$unlawful$for$an$
employer$to$commit$any$of$the$following$unfair$labor$practices:$
(a)$To$interfere$with,$restrain$or$coerce$employees$in$the$exercise$of$their$right$to$
selfaorganization;$
x$x$x$x$
$To$contract$out$services$or$functions$being$performed$by$union$members$when$
such$will$interfere$with,$restrain,$or$coerce$employees$in$the$exercise$of$their$right$
to$selfaorganization;$
x$x$x$x$
(e)$To$discriminate$in$regard$to$wages,$hours$of$work,$and$other$terms$and$
conditions$of$employment$in$order$to$encourage$or$discourage$membership$in$any$
labor$organization.$x$x$x$

The(questioned(acts(of(petitioners,(namely:(1)(sponsoring(a(field(trip(to(
Zambales(for(its(employees,(to(the(exclusion(of(union(members,(before(
the(scheduled(certification(election;(2)(the(active(campaign(by(the(sales(
officer(of(petitioners(against(the(union(prevailing(as(a(bargaining(agent(
during(the(field(trip;(3)(escorting(its(employees(after(the(field(trip(to(the(
polling(center;(4)(the(continuous(hiring(of(subcontractors(performing(
respondents(functions;(5)(assigning(union(members(to(the(Cabangan(
site(to(work(as(grass(cutters;(and(6)(the(enforcement(of(work(on(a(

rotational(basis(for(union(members,(taken(together,(reasonably(support(
an(inference(that,(indeed,(such(were(all(orchestrated(to(restrict(
respondents(free(exercise(of(their(right(to(self?organization.((

The(Court(is(of(the(considered(view(that(petitioners(undisputed(actions(
prior(and(immediately(before(the(scheduled(certification(election,(while(
seemingly(innocuous,(unduly(meddled(in(the(affairs(of(its(employees(in(
selecting(their(exclusive(bargaining(representative.((

Dispositive:(CA(Ruling(Affirmed.(Except:(ATTYs(fees(deleted((
(
$
Toyota%Motors%Workers%Association%v.%NLRC%
October(19,(2007(||(J.(Velasco(
By:(Rose(Ann(
%
FACTS:%%
The( Union( is( a( legitimate( labor( organization( duly( registered( DOLE.( It( filed( a(
petition( for( certification( election( among( the( Toyota( rank( and( file( employees(
with(the(NCMB.((The(certification(election(was(conducted.(Med?Arbiter(Lameyra(
certified(the(Union(as(the(SEBA(of(all(the(Toyota(rank(and(file(employees.(Toyota(
challenged(said(Order(via(an(appeal(to(the(DOLE(Secretary.(((
((
In( the( meantime,( the( Union( submitted( its( CBA( proposals( to( Toyota,( but( the(
latter(refused(to(negotiate(in(view(of(its(pending(appeal.(Thus,(the(Union(filed(a(
notice(of(strike(with(the(NCMB.(NCMB?NCR(converted(the(notice(of(strike(into(a(
preventive( mediation( case( on( the( ground( that( the( issue( of( whether( or( not( the(
Union(is(the(SEBA(of(all(Toyota(rank(and(file(employees(was(still(unresolved(by(
the(DOLE(Secretary.(
((
On( February( 21,( 2001,( 135( Union( officers( and( members( failed( to( render( the(
required(overtime(work,(and(instead(marched(to(and(staged(a(picket(in(front(of(
the( BLR( office( in( Intramuros,( Manila.( ( More( than( 200( employees( staged( mass(
actions(on(February(22(and(23,(2001(in(front(of(the(BLR(and(the(DOLE(offices,(to(
protest(the(partisan(and(anti?union(stance(of(Toyota.((
(
Due( to( the( deliberate( absence( of( a( considerable( number( of( employees( on(
February( 22( to( 23,( 2001,( Toyota( experienced( acute( lack( of( manpower( in( its(
manufacturing( and( production( lines,( and( was( unable( to( meet( its( production(
goals(resulting(in(huge(losses(of(PhP(53,849,991.(
((
Toyota(sent(individual(letters(to(some(360(employees(requiring(them(to(explain(
why(they(should(not(be(dismissed(for(their(obstinate(defiance(of(the(companys(

directive( to( render( overtime( work( on( February( 21,( 2001,( for( their( failure( to(
report(for(work(on(February(22(and(23,(2001,(and(for(their(participation(in(the(
concerted( actions( which( severely( disrupted( and( paralyzed( the( plants(
operations.((
(
The( Union( filed( with( the( NCMB( another( notice( of( strike( for( union( busting(
amounting(to(unfair(labor(practice.(
(
The( Union( nonetheless( submitted( an( explanation( in( compliance( with( the((
notices(sent(by(Toyota(to(the(erring(employees.(The(Union(members(explained(
that( their( refusal( to( work( on( their( scheduled( work( time( for( two( consecutive(
days(was(simply(an(exercise(of(their(constitutional(right(to(peaceably(assemble(
and(to(petition(the(government(for(redress(of(grievances.(It(further(argued(that(
the(demonstrations(staged(by(the(employees(could(not(be(classified(as(an(illegal(
strike(or(picket,(and(that(Toyota(had(already(condoned(the(alleged(acts(when(it(
accepted(back(the(subject(employees.((
((
Toyota( terminated( the( employment( of( 227( employees( for( participation( in(
concerted(actions(in(violation(of(its(Code(of(Conduct(and(for(misconduct(under(
Article(282(of(the(Labor(Code.((
(
In(reaction(to(the(dismissal(of(its(union(members(and(officers,(the(Union(went(
on(strike(on(March(17,(2001.(From(March(28,(2001(to(April(12,(2001,(the(Union(
intensified(its(strike(by(barricading(the(gates(of(Toyotas(Bicutan(and(Sta.(Rosa(
plants.( The( strikers( prevented( workers( who( reported( for( work( from( entering(
the(plants.((
(((
(On(March(29,(2001,(Toyota(filed(a(petition(for(injunction(with(a(prayer(for(the(
issuance( of( a( TRO( with( the( NLRC.( It( sought( free( ingress( to( and( egress( from( its(
Bicutan( and( Sta.( Rosa( manufacturing( plants.( ( NLRC( issued( a( TRO( against( the(
Union,(ordering(the(removal(of(barricades(and(all(forms(of(obstruction(to(ensure(
free(ingress(to(and(egress(from(the(companys(premises.(((
((
Meanwhile,( Toyota( filed( a( petition( to( declare( the( strike( illegal( with( the( NLRC(
arbitration(branch.(
((
On( April( 10,( 2001,( the( DOLE( Secretary( assumed( jurisdiction( over( the( labor(
dispute( and( issued( an( Order( certifying( the( labor( dispute( to( the( NLRC.( In( the(
Order(the(DOLE(Secretary(gave(a(return(to(work(directive(and(likewise(ordered(
Toyota(to(accept(the(returning(employees(under(the(same(terms(and(conditions(
obtaining( prior( to( the( strike( or( at( its( option,( put( them( under( payroll(
reinstatement.( The( parties( were( also( enjoined( from( committing( acts( that( may(
worsen(the(situation.(
((
The(Union(ended(the(strike.(The(union(members(and(officers(tried(to(return(to(
work(but(were(told(that(Toyota(opted(for(payroll?reinstatement(authorized(by(

the(Order(of(the(DOLE(Secretary.(
((
In(the(meantime,(the(Union(filed(an(MR(of(the(DOLE(Secretarys(April(10,(2001(
certification(Order.(SOLE(denied.(A(petition(for(certiorari(was(filed(in(the(CA.(
(((
Meanwhile,( on( May( 23,( 2001,despite( the( issuance( of( the( DOLE( Secretarys(
certification( Order,( several( payroll?reinstated( members( of( the( Union( staged( a(
protest(rally(in(front(of(Toyotas(Bicutan(Plant(bearing(placards(and(streamers(in(
defiance(of(the(April(10,(2001(Order.(
((
Then,( on( May( 28,( 2001,( around( 44( Union( members( staged( another( protest(
action( in( front( of( the( Bicutan( Plant.( At( the( same( time,( some( 29( payroll?
reinstated(employees(picketed(in(front(of(the(Santa(Rosa(Plants(main(entrance,(
and(were(later(joined(by(other(Union(members.(
((
On( June( 5,( 2001,( notwithstanding( the( certification( Order,( the( Union( filed(
another(notice(of(strike.(The(DOLE(Secretary(directed(the(second(notice(of(strike(
to(be(subsumed(in(the(April(10,(2001(certification(Order.(
((
CA( dismissed( the( Unions( petition( for( certiorari( assailing( the( DOLE( Secretarys(
April(10,(2001(Order.(
((
(Subsequently,(the(NLRC(declared(the(strikes(staged(by(the(Union(on(February(
21(to(23,(2001(and(May(23(and(28,(2001(as(illegal.(Reasons:((
(
failed( to( comply( with( the( procedural( requirements( of( a( valid( strike(
under(Art.(263(of(the(Labor(Code.(
(
for( staging( strikes( after( the( DOLE( Secretary( assumed( jurisdiction( over(
the(Toyota(dispute(
((
CA( affirmed( NLRC( with( a( modification,( however,( of( deleting( the( award( of(
severance(compensation(to(the(dismissed(Union(members.(
((
However,(in(its(Resolution,(the(CA(modified(its(decision(by(reinstating(severance(
compensation(to(the(dismissed(employees(based(on(social(justice.(
(
ISSUE%%
WON(the(strikes(conducted(were(illegal(strikesYES(
WoN(the(Union(Officers(are(liableYES(
WoN(the(participating(Union(members(are(liableYES(
WoN(separation(pay(may(be(granted??NO(
(
RATIO%
THE( ALLEGED( PROTEST( RALLIES( IN( FRONT( OF( THE( OFFICES( OF( BLR( AND(
DOLE( SECRETARY( AND( AT( THE( TOYOTA( PLANTS( CONSTITUTED( ILLEGAL(
STRIKES(
February(2001(Strikes:(ILLEGAL(

While(the(facts(in(Philippine(Blooming(Mills(Employees(Organization(are(similar(
in(some(respects(to(that(of(the(present(case,(the(Union(fails(to(realize(one(major(
difference:(there(was(no(labor(dispute(in(Philippine(Blooming(Mills(Employees(
Organization.( In( the( present( case,( there( was( an( on?going( labor( dispute( arising(
from(Toyotas(refusal(to(recognize(and(negotiate(with(the(Union,(which(was(the(
subject(of(the(notice(of(strike(filed(by(the(Union(on(January(16,(2001.(
(
Applying( pertinent( legal( provisions( and( jurisprudence,( the( protest( actions(
undertaken(by(the(Union(officials(and(members(on(February(21(to(23,(2001(are(
not( valid( and( proper( exercises( of( their( right( to( assemble( and( ask( government(
for( redress( of( their( complaints,( but( are( illegal( strikes( in( breach( of( the( Labor(
Code.((
(
The(Unions(position(is(weakened(by(the(lack(of(permit(from(the(City(of(Manila(to(
hold( rallies.( The( purported( reason( for( these( protest( actions( was( to( safeguard(
their(rights(against(any(abuse(which(the(med?arbiter(may(commit(against(their(
cause.( However,( the( Union( failed( to( advance( convincing( proof( that( the( med?
arbiter(was(biased(against(them.(What(comes(to(the(fore(is(that(the(decision(not(
to(work(for(two(days(was(designed(and(calculated(to(cripple(the(manufacturing(
arm(of(Toyota.(It(becomes(obvious(that(the(real(and(ultimate(goal(of(the(Union(is(
to(coerce(Toyota(to(finally(acknowledge(the(Union(as(the(sole(bargaining(agent(
of( the( company.( This( is( not( a( legal( and( valid( exercise( of( the( right( of( assembly(
and(to(demand(redress(of(grievance.(
((
The( Union( failed( to( comply( with( the( following( requirements( for( a( valid( strike:(
(1)( a( notice( of( strike( filed( with( the( DOLE( 30( days( before( the( intended( date( of(
strike,(or(15(days(in(case(of(unfair(labor(practice;((2)(strike(vote(approved(by(a(
majority( of( the( total( union( membership( in( the( bargaining( unit( concerned(
obtained( by( secret( ballot( in( a( meeting( called( for( that( purpose;( and( (3)( notice(
given( to( the( DOLE( of( the( results( of( the( voting( at( least( seven( days( before( the(
intended(strike.(These(requirements(are(mandatory(and(the(failure(of(a(union(to(
comply(with(them(renders(the(strike(illegal.(The(evident(intention(of(the(law(in(
requiring( the( strike( notice( and( the( strike?vote( report( is( to( reasonably( regulate(
the( right( to( strike,( which( is( essential( to( the( attainment( of( legitimate( policy(
objectives(embodied(in(the(law.((
((
Moreover,(the(February(2001(strikes(are(in(blatant(violation(of(Sec.(D,(par.(6(of(
Toyotas( Code( of( Conduct( which( prohibits( inciting( or( participating( in( riots,(
disorders,(alleged(strikes(or(concerted(actions(detrimental(to([Toyotas](interest.(
The(penalty(for(the(offense(is(dismissal.(The(Union(and(its(members(are(bound(
by( the( company( rules,( and( the( February( 2001( mass( actions( and( deliberate(
refusal(to(render(regular(and(overtime(work(on(said(days(violated(these(rules.((
(
March?April(2001(Strikes:(ILLEGAL(
They( were( initially( legal( as( the( legal( requirements( were( met.( However,( when(
the(Union(barricaded(the(gates(of(the(Bicutan(and(Sta.(Rosa(plants(and(blocked(

the( free( ingress( to( and( egress( from( the( company( premises,( these( strikes( were(
illegal( because( unlawful( means( were( employed.( The( acts( of( the( Union( officers(
and(members(are(in(palpable(violation(of(Art.(264(e),(which(proscribes(acts(of(
violence,( coercion,( or( intimidation,( or( which( obstruct( the( free( ingress( to( and(
egress(from(the(company(premises.((
(
May(2001(Strikes:(ILLEGAL(
The( Union( asserts( that( the( rallies( held( on( May( 23( and( 28,( 2001( could( not( be(
considered(strikes,(as(the(participants(were(the(dismissed(employees(who(were(
on(payroll(reinstatement.(It(concludes(that(there(was(no(work(stoppage.(
(
SC:( While( it( may( be( conceded( that( there( was( no( work( disruption( in( the( two(
Toyota( plants,( the( fact( still( remains( that( the( Union( and( its( members( picketed(
and( performed( concerted( actions( in( front( of( the( Company( premises.( This( is( a(
patent(violation(of(the(assumption(of(jurisdiction(and(certification(Order(of(the(
DOLE(Secretary,(which(ordered(the(parties(to(cease(and(desist(from(committing(
any( act( that( might( lead( to( the( worsening( of( an( already( deteriorated( situation.(
While( there( are( no( work( stoppages,( the( pickets( and( concerted( actions( outside(
the(plants(have(a(demoralizing(and(even(chilling(effect(on(the(workers(inside(the(
plants( and( can( be( considered( as( veiled( threats( of( possible( trouble( to( the(
workers( when( they( go( out( of( the( company( premises( after( work( and( of(
impending(disruption(of(operations(to(company(officials(and(even(to(customers(
in(the(days(to(come.(((
(
UNION( OFFICERS( ARE( LIABLE( FOR( UNLAWFUL( STRIKES( OR( ILLEGAL( ACTS(
DURING(A(STRIKE(
Art.( 264(a)( sanctions( the( dismissal( of( a( union( officer( who( knowingly(
participates(in(an(illegal(strike(or(who(knowingly(participates(in(the(commission(
of(illegal(acts(during(a(lawful(strike.(
((
The( Union( officials( were( in( clear( breach( of( Art.( 264(a)( when( they( knowingly(
participated(in(the(illegal(strikes(held(from(February(21(to(23,(2001,(from(March(
17(to(April(12,(2001,(and(on(May(23(and(28,(2001.(((
((
MEMBERS(LIABILITY(DEPENDS(ON(PARTICIPATION(IN(ILLEGAL(ACTS(
(Art.( 264(a)( of( the( Labor( Code( provides( that( a( member( is( liable( when( he(
knowingly( participates( in( an( illegal( act( during( a( strike.( While( the( provision( is(
silent(on(whether(the(strike(is(legal(or(illegal,(we(find(that(the(same(is(irrelevant.(
As(long(as(the(members(commit(illegal(acts,(in(a(legal(or(illegal(strike,(then(they(
can(be(terminated.(However,(an(ordinary(striking(worker(cannot(be(terminated(
for(mere(participation(in(an(illegal(strike.((
((
No(precise(meaning(was(given(to(the(phrase(illegal(acts((committed(in(a(strike).(
It(may(encompass(a(number(of(acts(that(violate(existing(labor(or(criminal(laws,(
such(as(the(following:(
((

(1)(Violation(of(Art.(264(e)(of(the(Labor(Code(which(provides(that([n]o(person(
engaged(in(picketing(shall(commit(any(act(of(violence,(coercion(or(intimidation(
or(obstruct(the(free(ingress(to(or(egress(from(the(employers(premises(for(lawful(
purposes,(or(obstruct(public(thoroughfares;(
(2)(Commission(of(crimes(and(other(unlawful(acts(in(carrying(out(the(strike;(and(
(3)( Violation( of( any( order,( prohibition,( or( injunction( issued( by( the( DOLE(
Secretary( or( NLRC( in( connection( with( the( assumption( of(
jurisdiction/certification(Order(under(Art.(263(g)(of(the(Labor(Code.(
(
This( enumeration( is( not( exclusive( and( it( may( cover( other( breaches( of( existing(
laws.(
((
After( a( scrutiny( of( the( records,( the( 227( employees( indeed( joined( the( February(
21,(22,(and(23,(2001(rallies(and(refused(to(render(overtime(work(or(report(for(
work.((
(
Anent( the( March( 28( to( April( 12,( 2001( strikes,( evidence( is( ample( to( show(
commission(of(illegal(acts(like(acts(of(coercion(or(intimidation(and(obstructing(
free(ingress(to(or(egress(from(the(company(premises.(The(strikers(badmouthed(
people(coming(in(and(shouted(invectives(such(as(bakeru(at(Japanese(officers(of(
the( company.( The( strikers( even( pounded( the( vehicles( of( Toyota( officials.( More(
importantly,( they( prevented( the( ingress( of( Toyota( employees,( customers,(
suppliers,( and( other( persons( who( wanted( to( transact( business( with( the(
company.( These( were( patent( violations( of( Art.( 264(e)( of( the( Labor( Code,( and(
may(constitute(crimes(under(the(RPC(such(as(threats(or(coercion(among(others.(
(
Lastly,( the( strikers,( though( on( payroll( reinstatement,( staged( protest( rallies( on(
May( 23,( 2001( and( May( 28,( 2001( which( are( patent( violations( of( the( April( 10,(
2001(assumption(of(jurisdiction/certification(Order(issued(by(the(SOLE,(which(
proscribed( the( commission( of( acts( that( might( lead( to( the( worsening( of( an(
already(deteriorated(situation.(Art.(263(g)(is(clear(that(strikers(who(violate(the(
assumption/certification(Order(may(suffer(dismissal(from(work.((
(
SEPARATION(PAY(CANNOT(BE(GRANTED(IN(THIS(CASE(
GENERAL(RULE:(when(just(causes(for(terminating(the(services(of(an(employee(
under( Art.( 282( of( the( Labor( Code( exist,( the( employee( is( not( entitled( to(
separation( pay.( The( apparent( reason( behind( the( forfeiture( of( the( right( to(
termination( pay( is( that( lawbreakers( should( not( benefit( from( their( illegal( acts.(
The( dismissed( employee,( however,( is( entitled( to( whatever( rights,( benefits( and(
privileges( [s/he]( may( have( under( the( applicable( individual( or( collective(
bargaining( agreement( with( the( employer( or( voluntary( employer( policy( or(
practice(or(under(the(Labor(Code(and(other(existing(laws.((
(
One( exception( where( separation( pay( is( given( even( though( an( employee( is(
validly(dismissed(is(when(the(court(finds(justification(in(applying(the(principle(
of(social(justice(well(entrenched(in(the(1987(Constitution.(In(PLDT(v.(NLRC,(the(

Court( laid( down( the( rule( that( severance( compensation( shall( be( allowed( only(
when(the(cause(of(the(dismissal(is(other(than(serious(misconduct(or(that(which(
reflects(adversely(on(the(employees(moral(character.((
((
Explicit( in( PLDT( are( two( exceptions:( serious( misconduct( (which( is( the( first(
ground(for(dismissal(under(Art.(282)(or(acts(that(reflect(on(the(moral(character(
of(the(employee.((
((
A(painstaking(review(of(case(law(renders(obtuse(the(Unions(claim(for(separation(
pay.( In( a( slew( of( cases,( this( Court( refrained( from( awarding( separation( pay( or(
financial( assistance( to( union( officers( and( members( who( were( separated( from(
service(due(to(their(participation(in(or(commission(of(illegal(acts(during(strikes.(
(
(
(

Phil%Blooming%Mills%Employment%Org%(PBMEO)%v%PBM%Co.%Inc.%%%
June$5,$1973;$Makasiar,$J.:$
By:$Paola$

FACTS:%
1. PBMEO(is(a(legitimate(labor(union(composed(of(the(employees(of(PBM(Co.(
393(members(joined(the(demonstration(at(issue.(
2. On( March( 1,( 1969,( they( decided( to( stage( a( mass% demonstration% at%
Malacaang%on%March%4,%1969,%in%protest%against%alleged%abuses%of%the%
Pasig%police,(to(be(participated(in(by(workers(in(the(first(shift((6(AM(to(2(
PM),(as(well(as(those(in(the(second((7(AM(to(4(PM)(and(third((8(AM((5PM)(
shifts.(The(company(was(informed(of(the(proposed(demonstration.(
3. On(March(2,(1969,(PBM(Co.(allegedly(learned(of(the(demonstration.(
4. March( 3:( A( meeting( was( again( held( between( department( heads( for( the(
union(and(the(management(was(called(by(the(company(on(March(3,(asking(
that( the( union( panel( confirm( or( deny( the( mass( demonstration.( It( was(
confirmed(by(the(union(spokesperson(Pacu.(
a. Pacu,( informed( management( that( the( demonstration( cannot( be(
cancelled( because( it( has( already( been( agreed( upon( and( explained(
that( it( had( nothing( to( do( with( the( company( bec.( the( union( had( no(
quarrel(with(the(management.((
b. Management( informed( that( the( demonstration( is( an( inalienable(
right( granted( by( the( constitution,( but( emphasized( that( the(
demonstration(should(not(unduly(prejudice(the(normal(operations(
of(the(company.(
c. The( company( suggested( that( the( first( shift( from( 6am?2pm( should(
report(to(work(in(order(to(avoid(loss(or(damage(to(the(firm.(
d. They( warned( that( those( in( the( 1st( and( 2nd( shift( who( participate(
without( filing( for( leave,( and( who( fail( to( report( on( the( day( of( the(
demonstration( shall( be( dismissed( for( violating% the% no% strike% no%
lockout% policy% provision% in% the% CBA% tantamount% to% an% illegal%
strike.%%

e.

The( union( countered( that( it( was( too( late( to( change( their( plans(
sinche(the(demonstration(will(be(held(the(following(morning.%
5. March(4,(1969:(Adviser(of(PBMEO,(Mr.(Aniston,(sent(PBM(Co(a(cablegram(to(
Company(received(9:50(AM(reiterating(request(excuse(day(shift(employees(
joining(demonstration(march(
6. Because( preparations( had( been( made,( the( union( proceeded( with( the(
demonstration((400(union(members(went(to(the(protest)(
7. Complaint(was(filed(by(the(company(to(the(CIR(for(violation(of(section(4(a)?
6,( in( relation( to( sections( 13( and( 14( of( RA( 875( (Act( to( Promote( Industrial(
Peace)(and(their(CBA.(
8. (In(their(answer,(PBMEO(said(that:(
a. They(did(not(violate(CBA(because(they(notified(PBM(Co.(prior(to(the(
demonstration((
b. (That( the( mass( demonstration( was( a( valid( exercise( of( their(
constitutional( right( of( free( speech( against( the( abuses( of( Pasig(
policemen.(
c. That(their(demonstration(was(not(a(declaration(of(strike(because(it(
was(not(directed(against(PBM(Co.((
9. CIR:% PBMEO% was% guilty% of% bargaining% in% bad% faith,% and% its% officers(
Florencio,( Rufino,( Marioano,( Asecion,( Bonifacio,( Benjamin,( Nicanor( and(
Rodulfo( (petitioners( here)( were( held( directly( responsible( for( perpetrating(
the( ULP,( thus( they( were( dismissed.( Decision( was( allegedly( received( on(
September(22,(1969.(
10. An(MR(was(filed(on(September(29.(The(company(argues(that(under(the(CIR(
Rules(of(Court,(the(petitioners(had(5(days(to(file(MR,(and(since(it(was(filed(2(
days(late,(the(MR(should(be(dismissed.(
11. CIR( on( MR:( dismissed( for( being( filed( beyond( the( reglementary( period.(
Decision(was(appealed(to(the(SC.(
(
%
ISSUES/HELD/RATIO:(
(
W/N(the(Union(was(engaged(in(ULP(for(holding(the(demonstration(%NO.%
The( court( went( into( a( lengthy( discussion( about( rights( and( freedoms,(
but(it(highlighted(that(in(the(hierarchy(of(civil(liberties,(the(rights(of(free(
expression( and( assembly( occupy( a( preferred( position( as( they( are(
essential( to( the( preservation( and( vitality( of( our( civil( and( political(
institutions( []( [And]( that( while( the( Bill( of( Rights( also( protects(
property(rights,(the%primacy%of%human%rights%over%property%rights%is%
recognized.((
(Because( there( freedoms( are( delicate( and( vulnerable,( as( well( as(
supremely(precious(in(our(society(and(the(threat(of(sanctions(may(deter(
their(exercise(almost(as(potently(as(the(actual(application(of(sanctions,(
they( need( breathing( space( to( survive,( permitting( government(
regulation(only(with(narrow(specificity.(

Property(and(property(rights(can(be(lost(thru(prescription;(but(human(
rights( are( imprescriptible.( If( human( rights( are( extinguished( by( the(
passage(of(time,(then(the(Bill(of(Rights(is(a(useless(attempt(to(limit(the(
power(of(government(and(ceases(to(be(an(efficacious(shield(against(the(
tyranny(of(officials,(of(majorities,(of(the(influential(and(powerful,(and(of(
oligarchs(?(political,(economic(or(otherwise.(
In(the(hierarchy(of(civil(liberties,(the%rights%of%free%expression%and%of%
assembly% occupy% a% preferred% position% as% they% are% essential% to% the%
preservation%and%vitality%of%our%civil%and%political%institutions;(and(
such( priority( "gives( these( liberties( the( sanctity( and( the( sanction( not(
permitting(dubious(intrusions.(
The(superiority(of(these(freedoms(over(property(rights(is(underscored(
by(the(fact(that(a(mere%reasonable%or%rational%relation%between%the%
means% employed% by% the% law% and% its% object% or% purpose( ( that( the(
law( is( neither( arbitrary( nor( discriminatory( nor( oppressive( ( would(
suffice(to(validate%a%law%which%restricts%or%impairs%property%rights.(
On( the( other( hand,( a( constitutional( or( valid( infringement( of( human(
rights(requires(a(more(stringent(criterion,(namely(existence(of(a(grave(
and( immediate( danger( of( a( substantive( evil( which( the( State( has( the(
right(to(prevent.(
The( CIR,( after% opining( that( the( mass( demonstration( was( not% a%
declaration% of% strike,( concluded( that( by( their( concerted( act( and( the(
occurrence( temporary( stoppage( of( work,( [sic]( PBMEO( is( guilty( of(
bargaining(in(bad(faith.(HOWEVER,(the(CIR%is%incorrect(
o The( demonstration( was( against( the( abusive( Pasig( policemen,(
not( against( PBM( Co.( Thus,( they( were( merely( exercising(
freedom( of( expression( in( general( and( of( the( right( of( assembly(
and( of( petition( of( redress( of( grievances( in( particular( [before(
the( Chief( Executive,( the( proper( government( agency,( against(
abusive(policemen](
o As(a(matter(of(fact,(it(was(the(duty(of([PBM(Co](to(protect(its(
employees(from(the(harassment(of(the(police(officers.(It(was(to(
the(interest(of([PBM(Co](to(rally(in(defense(of,(and(take(up(the(
cudgels(for(its(employees(so(that(they(could(report(to(work(free(
from(harassment.(
o The( pretension( of( their( employer( that( it( would( suffer( loss( or(
damage( by( reason( of( the( absence( of( its( employees( from( 6( AM(
to(2(PM(is(a(plea(for(the(preservation(merely(of(their(property(
rights( []( Material( loss( can( be( repaired( or( adequately(
compensated.( The( debasement( of( the( human( being( ( broken(
in( morale( and( brutalized( in( spirit( ( can( never( be( fully(
evaluated(in(monetary(terms.(The(wounds(fester(and(the(scars(
remain( to( humiliate( him( to( his( dying( day,( even( as( he( cries( in(
anguish(for(retribution,(denial(of(which(is(like(rubbing(salt(on(
bruised(tissues.((

o
o
o

To(regard(the(demonstration(against(police(officers,(not(against(
the(employer,(as(evidence(of(bad(faith(in(collective(bargaining(
and( hence( a( violation( of( the( collective( bargaining( agreement(
and( a( cause( for( the( dismissal( from( employment( of( the(
demonstrating( employees,( stretches% unduly% the% compass% of%
the%collective%bargaining%agreement,(is%"a%potent%means%of%
inhibiting%speech"(
According(to(CIR(the(CBA(fixes(the(work(shift(of(the(employees(
and(as(such(it(imposes(a(duty(on(part(of(employees(to(observe(
working(hours.(This%strained%construction,%denying%right%to%
stage% a% mass% demonstration% against% police% abuses% during%
working%hours,%constitutes%a%virtual%tyranny%over%the%mind%
and%life%of%workers.%(
(
Injunction% by% court% of% the% mass% demonstration% would% be%
trenching%upon%freedom%of%expression%of%workers.%(
PBM( Co( claims( that( there( was( no( need( for( all( workers( to(
participate(in(the(demonstration,(to(avoid(loss(or(damage(to(th(
firm.( ( This( stand( fails% to% appreciate% that% the% condition% sine%
qua% non% of% an% effective% demonstration% especially% by% the%
labor% union,% is% the% complete% unity% of% its% members% as% well%
as% their% total% presence% at( the( demonstration( site( in( order( to(
generate(maximum(sympathy(for(the(validity(of(their(cause(but(
also(immediate(action(from(the(government(agency(concerned.(
At( any( rate,( Union( notified( PBM( Co( 2( days( prior( to(
demonstration.( There( was( a( lack( of( human( understanding( or(
compassion( on( the( part( of( the( firm( in( rejecting( the( request( of(
the( Union( for( excuse( from( work( for( the( day( shifts( in( order( to(
carry(out(its(mass(demonstration(

(
W/N(PBM(Co.(is(guilty(of(ULP((YES.%(
The% company% is% actually% the% one% guilty% of% unfair% labor% practice.(
Because(refusal(on(the(part(of(the(company(to(permit(all(employees(to(
join( the( demonstration,( and( the( subsequent( dismissal( of( the( 8(
petitioners(constituted(an(unconstitutional%restraint%on%the%freedom%
of% expression,% assembly,% and% freedom% to% petition% for% redress% of%
grievances.((
o The(Company(committed(an(unfair(labor(practice(as(defined(in(
Section( 4(a?1)( in( relation( to( section( 3( of( the( Industrial( Peace(
Act.( Sec( 3( guarantees( the( right% of% employees% to% engage% in%
concerted%activities%for%%mutual%aid%or%protection,%while(
4(a?1)( makes( it( a( ULP( for( an( employer( to( interfere% with,%
restrain% or% coerce% employees% in% the% exercise% of% rights%
granted%in%Sec.%3.(
o Obviously,( the( facts( show( that( the( demonstration( staged( was(
for( their( mutual( aid( and( protection,( and( the( company( with( its(

threat( of( dismissal( on( the( employees( committed( an( act(

interfering(with(the(exercise(of(this(right.(
Further,(the(CIR(failed%to%make%any%finding%as%to%the%fact%of%
losses% actually% sustained% by% the% firm.( This( can( only( mean(
that( firm( did( not( sustain( damage:( no( evidence( to( show( it( lost(
expected( profits,( or( that( penalties( were( exacted( by( customers(
whose(orders(could(not(be(filled(that(day.((
The(SC(held(that(on(the(contrary,(the(company(saved(a(sizable(
amount(in(the(form(of(wages(for(its(hundreds(of(workers,(cost(
of( fuel,( water( and( electric( consumption( for( that( day( [which(
could( amply( compensate( unrealized( profits( or( damage( that(
day](lol(

(
W/N(dismissal(of(the(8(leaders(valid(NO.%%
The(dismissal(of(the(8(leaders(is(also(contrary(to(the(principles(of(social(
justice( enunciated( in( the( Constitution( [promotion( of( social( justice( to(
insure(economic(security(of(all(people;(and(protection(to(labor](
(
Further,( the( violation( of( the( employees( constitutional( right( divested(
the( CIR( of( jurisdiction,( and( as( a( consequence,( its( judgment( is( null( and(
void(and(confers(no(rights.(
(
Does( the( fact( that( the( MR( was( filed( 2( days( late( defeat( the( rights( if( the(
employees(%NO.(
The(rules(of(procedure(here(were(promulgated(by(the(CIR(pursuant(to(
legislative(legislation.(
According( to( the( SC,( the( constitution( is( superior( to( any( statute( or(
subordinate(rules.(The(court(highlighted(that(the(rights(involved(in(this(
case(were(the(rights(of(free%expression,%assembly%and%petition.(
o It(is(an(accepted(principle(that(the(SC(has(the(inherent(power(to(
suspend( its( own( rules( or( to( except( a( particular( case( from( its(
operation,(whenever(the(purposes(of(justice(require.(
o The( suspension( of( the( provision( involved( (Sec( 15)( is( also(
authorized( by( the( CIR( charter,( which( enjoins( the( CIR( to( act(
according( to( justice( and( equity( and( substantial( merits( of( the(
case,(without(regard(to(technicalities(or(legal(forms(
o These( doctrines( have( been( upheld( in( Kapisanan$ v$ Hamilton,$
Palma$v$Oreta.(
(
Even( if( the( CIR( orders( were( to( be( given( effect,( the( dismissal( or(
termination(of(the(8(leaders(is(harsh(for(a(1(day(absence(in(work.(The%
appropriate% penaltyif% any% at% all% is% deservedshould% have% been%
to%charge%the%one%day%absence%against%vacation%or%sick%leave.%
Management( has( shown( not( only( lack( of( good?will( or( good( intention,(
but( a( complete( lack( of( sympathetic( understanding( of( the( plight( of( its(

laborers( who( claim( that( they( are( being( subjected( to( indignities( by( the(
local(police.(
(
Dismissed( 8( employees( should( be( reinstated( with( full( back( pay( from( date( of(
separation(from(service(
(
(

!
!
!
!
!
Biflex%Phils%Inc%Labor%Union%(NAFLU)%v.%Filflex%Industrial%and%Biflex%Phils.%
Inc.%
December(19,(2006(/(Carpio?Morales,(J.(
Digest(by(Cate(Alegre(

(
Summary%
There(was(a(welga$ng$bayan.(Two(labor(unions,(on(the(date(such(welga(was(held(joined(in(
and( conducted( work( stoppage( and( prevented( ingress( and( egress( at( their( office.(
Management( claimed( that( such( work( stoppage( was( illegal.( SC( sided( with( management(
claiming( what( the( union( did( was( in( the( nature( of( sympathy( strike,( did( not( follow( the(
proper( procedure( in( staging( a( strike,( and( assuming( arguendo( that( the( procedural( rules(
were(followed,(the(act(of(preventing(ingress(and(egress(was(also(illegal(
%
Doctrine%
Employees( who( have( no( labor( dispute( with( their( employer( but( who,( on( a( day( they( are(
scheduled( to( work,( refuse( to( work( and( instead( join( a(welga$ ng$ bayan(commit( an( illegal(
work( stoppage.( Even( if( petitioners( joining( the(welga$ ng$ bayan(were( considered( merely(
as(an(exercise(of(their(freedom(of(expression,(the(exercise(of(such(rights(is(not(absolute.(
For(the(protection(of(other(significant(state(interests(such(as(the("right(of(enterprises(to(
reasonable(returns(on(investments,(and(to(expansion(and(growth"(enshrined(in(the(1987(
Constitution(must(also(be(considered.(The(legality(of(a(strike(is(determined(not(only(by(
compliance(with(its(legal(formalities(but(also(by(the(means(by(which(it(is(carried(out.%

FACTS:%
The( unions( involved( in( this( case( were( Biflex( (Phils)( Inc.( Labor( Union( and( Filflex(
Industrial( and( Manufacturing( Labor( Union( (Petitioners),( which( are( affiliated( with(
National(Federation(of(Labor(Unions((NAFLU).(
o Unions(are(the(respective(collective(bargaining(agents(of(the(employees(of(the(
corporations(
Biflex( (Phils.)( Inc.( and( Filflex( Industrial( and( Manufacturing( Corporation(
(Respondents)(are(sister(companies(engaged(in(garment(business.(They(are(situated(
in(one(big(compound(and(have(a(common(entrance(
October( 24,( 1990( ( a( welga( ng( bayan( was( staged( to( protest( the( oil( price( hike.(
Petitioners(also(staged(a(work(stoppage(to(join(the(welga(which(lasted(for(several(days.((
o October(31((?(Respondents(filed(a(petition(to(declare(the(work(stoppage(illegal(
for(failure(to(comply(with(procedural(requirements(

 November( 13,( 1990( ( upon( resumption( of( operations,( Petitioners( claimed( that( they(
were(illegally(locked(out(by(the(respondents.(
o Respondents( were( slighted( by( their( no?show( and( as( a( punishment( they( were(
barred(from(the(company(premises(
o They( placed( tents,( tables( and( chairs( in% front% of% the% main% gate( because( these(
were(for(the(convenience(of(union(members(who((check(everyday(if(they(will(be(
allowed(to(go(back(to(work((basically(saying(that(they(didnt(conduct(a(strike)(
Respondents( ( the( work( stoppage( was( illegal( since( they( failed( to( comply( with( the(
following:((1)(filing(of(notice(of(strike;((2)(securing(a(strike(vote,(and((3)(submission(of(
a(report(of(the(strike(vote(to(the(Department(of(Labor(and(Employment(
LA( ( strike( was( illegal!( Respondents( then( terminated( the( employment( of( petitioners(
union(members(
NLRC((reversed(
CA((reversed(NLRC(and(reinstated(LA(
(
ISSUE:(WON(the(strike(was(illegal?(YES(
(
RATIO%
Stoppage( of( work( due( to(welga$ ng$ bayan(is( in( the( nature( of( a( general( strike,( an(
extended(sympathy(strike.(It(affects(numerous(employers(including(those(who(do(not(
have( a( dispute( with( their( employees( regarding( their( terms( and( conditions( of(
employment.(
o Even( if( petitioners( joining( the(welga$ ng$ bayan(were( considered( merely( as( an(
exercise( of( their( freedom( of( expression,( freedom( of( assembly( or( freedom( to(
petition( the( government( for( redress( of( grievances,( the( exercise( of( such( rights( is(
not(absolute.(
o The(right(of(enterprises(to(reasonable(returns(on(investments(and(to(expansion(
and(growth(which(is(enshrined(in(the(1987(Constitution(must(also(be(considered.(
There( being( no( showing( that( petitioners( notified( respondents( of( their( intention,( or(
that( they( were( allowed( by( respondents,( to( join( the(welga$ ng$ bayan,( their( work(
stoppage(is(beyond(legal(protection.(
Even(assuming(arguendo$that(in(staging(the(strike,(petitioners(had(complied(with(legal(
formalities,% the% strike% would% just% the% same% be% illegal,% for% by% blocking% the% free%
ingress%to%and%egress%from%the%company%premises,(they(violated(Article(264(e)(of(
the(Labor(Code(which(provides(that("[n]o(person(engaged(in(picketing(shall((obstruct(
the( free( ingress( to( or( egress( from( the( employers( premises( for( lawful( purposes,( or(
obstruct(public(thoroughfares."(
In( fine,( the( legality( of( a( strike( is( determined( not( only( by( compliance( with( its( legal(
formalities(but(also(by(the(means(by(which(it(is(carried(out.(Article(264((a)(of(the(Labor(
Code(provides:(
.( .( .( Any(union% officer(who(knowingly( participates( in( an( illegal( strike(and( any(
worker(or(union(officer(who(knowingly(participates(in(the(commission(of(illegal(
acts( during( a( strike(may(be( declared( to( have( lost( his( employment(
status:(Provided,(That(mere(participation(of(a(worker(in(a(lawful(strike(shall(not(
constitute( sufficient( ground( for( termination( of( his( employment,( even( if( a(
replacement(had(been(hired(by(the(employer(during(such(lawful(strike.((
In(Gold$City$Integrated$Port$Service,$Inc.$v.$National$Labor$Relations$Commission,22(this(
Court,(passing(on(the(use(of(the(word("may"(in(the(immediately(quoted(provision,(held(
that( "[t]he( law( .( .( .( grants( the( employer( the( option( of( declaring( a( union( officer( who(
participated( in( an( illegal( strike( as( having( lost( his( employment."( Reinstatement( of( a(

striker(or(retention(of(his(employment,(despite(his(participation(in(an(illegal(strike,(is(a(
management(prerogative(which(this(Court(may(not(supplant.(
(
(
(

!
Hyatt!Enterprises,!588!SCRA!497!
!
!
!
!

YSS%Employees%Union%v.%YSS%Laboratories%
December$4,$2009$|$ChicoaNazario,$J.(
By:$Jadd$
$
SUMMARY:%

YSS(implemented(a(retrenchment(program(to(avoid(increasing(business(losses.(
YSS( terminated( the( services( of( 11( employees( (including( union( members( and(
officers)( when( no( one( availed( of( early( retirement.( The( Union( staged( a( strike(
after( the( NCMB( supervised( the( strike( vote.( After( the( NCMBs( conciliation(
proceedings( failed,( the( SOLE( certified( the( dispute( to( the( NLRC( for( compulsory(
arbitration,(and(issued(a(return(to(work(order.(YSS(refused(to(readmit(9(union(
officers(and(members(alleging(a(valid(retrenchment(and(illegal(strike.(The(SOLE(
found( for( the( Union( and( ordered( their( readmission,( but( the( CA( reversed( the(
SOLE.( The(SC(reversed(the(CA,(and(granted(the(Unions(Petition(for(Review(on(
Certiorari,(holding(that(YSS(should(readmit(all(striking(employees,(including(the(
retrenched(ones,(because(allowing(the(employer(to(decide(which(strikers(should(
be( admitted( back( to( work( would( strip( the( certification/AJO( of( the( necessary(
coercive(power(and(violate(their(compulsory(and(executory(nature.(
(
DOCTRINE:%
Employers(are(not(allowed(to(determine(which(strikers(should(be(covered(by(a(
return?to?work?order(because(it(is(compulsory(and(executory,(aimed(at(serving(
the(national(interest(by(preserving(the(status(quo(ante(and(industrial(peace.(
(
FACTS:%
The( Union( (YSS( EU)( is( a( duly?registered( labor( organization,( and( is( the(
SEBA(of(YSS(rank?and?file(employees.(
YSS(implemented(a(retrenchment(program(to(avoid(increasing(business(
losses.(

11( employees11( were( affected,( and( allegedly( chosen( in(

accordance( with( the( companys( reasonable( standards( as(
established.( 4( were( union( officers12( while( 5( were( union(
members13.(
o At( first,( they( were( given( the( option( to( avail( of( YSS( early(
retirement(program.(
o When( no( one( availed( of( early( retirement,( YSS( exercised( its(
option( to( terminate( their( services( based( on( Art.( 289( (then(
283).(
March(19,(2001((Copies(of(the(termination(notices(were(served(on(the(
DOLE.(
March(20,(2001((Copies(of(the(termination(notices(were(served(on(the(
employees(concerned.(
April( 20,( 2001( ( The( Union( staged( a( strike( after( the( strike( vote( was(
taken(under(the(NCMBs(supervision.(
The(NCMBs(conciliation(proceedings(were(unsuccessful.(
May(11,(2001((SOLE(certified(the(dispute(to(the(NLRC(for(compulsory(
arbitration.(The(RTWO((Return(to(Work(Order)(directed(the(employees(
to( return( to( work( within( 24( hours( from( receipt,( and( directed( YSS( to(
accept(them(under(pre?strike(terms(and(conditions.14(
o YSS(refused(to(comply.(
! YSS( Urgent( MR( argued( that( the( 9( union( officers( and(
members( should( be( excluded( due( to( valid(
retrenchment(and(participating(in(an(illegal(strike.(
o The(Union(moved(to(cite(YSS(in(contempt.(
June( 9,( 2001( ( The( SOLE( found( for( the( Union,( ordering( YSS( to(
immediately( accept( back( to( work( the( 9( retrenched( employees( and( 9(
union(officers(who(allegedly(initiated(the(strike,(or(otherwise(reinstate(
them(in(the(payroll(if(actual(reinstatement(was(not(possible.(
November( 26,( 2001( ( The( CA( granted( YSS( Petition( for( Certiorari,( and(
reversed(the(SOLEs(orders,(finding(that(there(was(a(valid(retrenchment(
and(that(the(strike(was(illegal.(
o

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
(Resie(Santos,(Edwin(Perona,(Rogelio(Salmorin,(Joselina(Victoria,(Dominador(Monterola,(Jacqueline(
Tubale,( Loreto( Esteves,( Jetner( Argamaso,( Teofilo( Pagaduan,( Jr.,( Bernardita( Mesias( and( Alexander(
Reig.(
12 (Secretary(?(Joselina(Victoria,(Auditor(?(Edwin(Perona,(Rogelio(Salmorin(?(PRO,(Teofilo(Pagaduan,(Jr.(
?(Board(Member(
13 (Resie(Santos,(Dominador(Monterola,(Jacqueline(Tubale,(Loreto(Esteves,(Jetner(Argamaso(
14 ( CONSIDERING( THESE( PREMISES,( this( Office( hereby( certifies( the( labor( dispute( at( [YSS(
Laboratories]( to( the( [NLRC]( for( compulsory( arbitration,( pursuant( to( Article( [269](g)( of( the( Labor(
[Code],(as(amended.(
All( striking( workers( are( hereby( directed( to( return( to( work( within( twenty( four( (24)( hours( from(
receipt(of(this(Order(and(for(the(Company(to(accept(them(back(under(the(same(terms(and(conditions(
of(employment(prior(to(the(strike.(
The( parties( are( further( directed( to( cease( and( desist( from( committing( any( act( which( might( further(
worsen(the(situation.(
Let(the(entire(records(of(this(case(be(forwarded(to(the(NLRC(for(its(appropriate(action.(
11

August(29,(2002((The(CA(denied(the(Unions(MR.(
The( Union( goes( up( to( the( SC( through( a( Petition( for( Review( on(
Certiorari.(

(
ISSUES/HELD:(WON(the(retrenched(employees(should(be(part(of(the(return(to(
work(order?((YES(
(
RATIO:%
Yes,(the(retrenched(employees(should(be(part(of(the(RTWO.(YSS(failed(to(show(
that( the( SOLE( gravely( abused( its( discretion( by( issuing( the( orders( in( an(
arbitrary/despotic( manner.( The( national( interest( is( served( by( preserving( the(
status(quo(ante(and(industrial(peace(pending(determination(of(the(main(issues,(
which(is(why(the(orders((AJO,(RTWO)(are(compulsory(and(executory.(
1) Character( of( SOLEs( labor( dispute( powers:( Plenary( and( broad,( with(
wide( latitude( of( discretion( to( adopt( the( most( expeditious( and(
reasonable(way(to(resolve(the(issue.((Citing(Telefunken$Semiconductors$
Employees$Union$v.$CA((2000))(
2) On(the(Assumption(of(Jurisdiction((AJO)(
A) Character( ( The( assumption( of( jurisdiction( in( Art.( 269(g)( is( the(
States( exercise( of( police( power( for( the( common( good.( (Citing(
Phimco$ Industries,$ Inc.$ v.$ Acting$ Secretary$ of$ Labor$ Brillantes(
(1999))(
1. Police(Power(
a. Definition((A(government's(inherent(power(to(enact(laws(
to( promote( society's( order,( safety,( health,( and( general(
welfare,(within(constitutional(limits.(
b. Character( ( Inherent( and( does( not( need( explicit(
constitutional( basis.( (Citing( Philtread$ Workers$ Union$
(PTWU)$v.$Confesor((1997))(
B) Purpose( of( granting( the( assumption( of( jurisdiction( power( to( the(
SOLE( ( Enable( the( SOLE( to( quickly,( fairly,( and( justly( resolve( the(
dispute( to( minimize( or( avert( damage( to( the( national( interest( by(
avoiding( work( stoppage( or( industrial( activity( lag,( or( even( just( the(
threat(of(such.((Citing(Telefunken$Semiconductors$Employees$Union$
v.$CA((2000))(
C) Effects( upon( the( strike/lockout( (Citing( TransaAsia$ Shipping$ Lines,$
Inc.aUnlicensed$ Crews$ Employees$ UnionaAssociated$ Labor$ Unions$
(TasliaAlu)$v.CA((2004)):(
i. If(it(has(not(yet(taken(place((Automatically(enjoined(
ii. If( it( has( taken( place( ( Striking( workers( return( to( work,( and(
employer(shall(immediately(resume(operations(and(readmit(all(
workers( under( the( same( terms( and( conditions( prevailing(
before(the(strike/lockout.(
3) On(Compulsory(Arbitration(Certification(

4)

5)

6)

7)

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A) Purpose( ( Quick( dispute( resolution,( not( interference( with(

management(rights.(
B) Regarding( the( dynamics( between( the( SOLE( and( labor( arbiters( as(
seen( in( Art.( 269(g)( ( The( provision( means( for( shared( jurisdiction(
between(the(SOLE(and(labor(arbiters,(subject(to(certain(conditions.(
Otherwise,(the(SOLE(would(not(be(able(to(effectively(and(efficiently(
dispose( of( the( primary( dispute,( and( there( might( be( conflicting(
rulings.( This( interpretation( of( the( provision( breathes( life( into( it,(
rather( than( defeating( it.( (Citing( International$ Pharmaceuticals,$ Inc.$
v.$SOLE,(1999)(
On(Return(to(Work(Orders(
A) Character((Compulsory(and(executory.(
B) Effect((Must(be(obeyed(until(set(aside.((Citing(PALEA$v.$PAL,(1971)(
C) Basis((A(courts(exercise(of(its(compulsory(arbitration(power.(
On(Grave(Abuse(of(Discretion(
A) Definition((Capricious(and(whimsical(exercise(of(judgment.(
B) Effect((Equivalent(to(lack(of(jurisdiction.(
C) Requisite( ( So( patent( and( gross( as( to( amount( to( an( evasion( of( a(
positive(duty(or(to(a(virtual(refusal(to(perform(a(duty(enjoined(by(
law,(or(to(act(at(all(in(contemplation(of(law,(as(where(the(power(is(
exercised(in(an(arbitrary(and(despotic(manner(by(reason(of(passion(
or( personal( hostility.( (Citing( Philtread$ Workers$ Union$ (PTWU)$ v.$
Confesor,((1997))(
In(this(case:(There(was(no(grave(abuse(of(discretion.(
A) YSS( failed( to( prove( that( the( SOLE( issued( the( orders( in( an(
arbitrary/despotic(manner.(
B) The( orders( were( issued( to( preserve( the( status( quo( ante( and(
industrial( peace( while( the( main( issues( (retrenchment( validity( and(
strike( legality)( were( being( decided( in( the( proper( forum.( This(
protects( the( common( good( because( a( continued( strike( is( against(
the(employer(and(employees(interest.(
C) YSS( assertion( of( the( retrenchments( validity( and( the( strikes(
illegality( as( grounds( for( not( accepting( certain( employees( violates(
the( compulsory( and( executory( character( of( AJOs( and( compulsory(
arbitration(certifications.(
D) YSS(must(readmit(all(striking(employees.(
Allowing( the( employer( to( decide( which( strikers( should( be( admitted(
back( to( work( would( strip( the( certification/AJO( of( the( necessary(
coercive(power.(

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Solid!Bank,!634!SCRA!554!

Phimco%v.%Pila%
2010$August$11$|$Brion,$J.$
By:$Jocs$Dilag$
$
SUMMARY:%

Union(filed(NOS,(conducted(a(strike(vote,(submitted(the(results(to(NCMB(and(35(
days(later,(staged(a(strike.(ER(dismissed(10(Union(officers(&(36(mems(for(illegal(
acts(committed(during(the(strike.(SC(held(strike(illegal.(Even(if(Union(complied(
w/( the( procedural( requirements( of( a( valid( strike,( the( strike( is( illegal( for( the(
illegal( acts( committed( when( they( blocked( the( free( ingress( to( and( egress( from(
companys( premises( and( picket( attended( with( intimidation.( Art( 264/278(a)(
makes(a(distinction(on(the(liabilities(of(participating(workers(and(Union(officers(
(see(below).(In(this(case,(the(participating(Union(officers(and(members(stand(to(
be(dismissed.(
(
DOCTRINE:%(Strikes,%Lockouts,%and%Picketing)%
While( the( right( of( employees( to( publicize( their( dispute( falls( within( the(
protection(of(freedom(of(expression(and(the(right(to(peaceably(assemble(to(air(
grievances,( these( rights( are( by( no( means( absolute.( Protected% picketing% does%
not%extend%to%blocking%ingress%to%and%egress%from%the%company%premises.((
(
Pickets(may(not(aggressively(interfere(with(the(right(of(peaceful(ingress(to(and(
egress(from(the(employers(shop(or(obstruct(public(thoroughfares;(picketing%is%
not% peaceful% where% the% sidewalk% or% entrance% to% a% place% of% business% is%
obstructed(by(picketers(parading(around(in(a(circle(or(lying(on(the(sidewalk.(
(
Article(264(e)(of(the(Labor(Code(tells(us(that(picketing(carried(on(with(violence,(
coercion( or( intimidation( is( unlawful.( According( to( American( jurisprudence,(
what( constitutes% unlawful% intimidation% depends% on% the% totality% of% the%

circumstances.(Force$threatened$is$the$equivalent$of$force$exercised.(There(may(
be(unlawful(intimidation(without(direct(threats(or(overt(acts(of(violence.(Words(
or(acts(which(are(calculated(and(intended(to(cause(an(ordinary(person(to(fear(an(
injury(to(his(person,(business(or(property(are(equivalent(to(threats.(
(
FACTS:%
CBA(was(about(to(expire(so(Phimco,(manufacturer(of(matches((posporo)(&(
PILA(negotiated(for(its(renewal,(which(resulted(in(a(deadlock(on(economic(
issues:(disagreements(on(salary(increases(and(benefits.(
Mar% 1995:( PILA( filed( w/( NCMB( a( Notice( of( Strike( on( the( ground( of( the(
bargaining(deadlock.((
Mar.16:(Union(conducted(a(strike(vote(?(majority(voted(in(favor(of(strike(
Mar.17:(Union(filed(strike(vote(results(w/(NCMB.(
Apr.21:(Union(staged(a(strike.((
May( 3:( Phimco( filed( w/( NLRC( a( petition( for( preliminary( injunction( and(
TRO,(to(enjoin(the(strikers(from(preventing(the(ingress(and(egress(of(non?
striking( EEs( into(and( from( the( company( premises.( ex?parte( TRO( issued,(
valid(for(20(days(
June( 23:( Phimco( sent( a( letter( to( 36( Union( members,( directing( them( to(
explain( within( 24( hours( why( they( should( not( be( dismissed( for( the( illegal(
acts(they(committed(during(the(strike.((
June(26:(These(36(Union(members(were(informed(of(their(dismissal.(
Union(filed(a(complaint(for(ULP(and(illegal(dismissal((Case(1).(
Acting( SOLE( Brillantes( assumed( jurisdiction,( and( issued( return?to?work(
order( for( all( the( striking( employees( (except( those( 36( terminated)( and( for(
Phimco(to(re?admit(them.(Union(ended(strike(on(the(same(day.(
Phimco(filed(a(petition(to(declare(strike(illegal(w/(prayer(for(the(dismissal(
of( PILA( officers( and( members( who( knowingly( participated( in( the( illegal(
strike( (Case( 2):( strikers( prevented( ingress( to( and( egress,( paralyzing(
companys(operations.((
Respondents( filed( their( position( paper:( They( complied( with( all( the( legal(
requirements(for(staging(strike,(put(up(no(barricade,(and(conducted(strike(
peacefully,(in(an(orderly(and(lawful(manner,(without(incident.((
LA((Case(2):(Illegal(strike;(prohibited(acts(committed(during(the(strike(by(
blocking( ingress( and( egress( of( companys( premises( and( preventing( the(
non?striking(EEs(from(reporting(for(work.((
NLRC:(Set(aside(LA.(Union(conducted(a(peaceful(moving(picket.(
LA((Case(1):(Illegal(dismissal.(Reinstatement(w/(backwages.((
NLRC:(Consolidated(2(cases.(Ruled(in(favor(of(Union.(Case(2:(not(an(illegal(
blockade,(did(not(obstruct(ingress(and(egress,(moving(picket(was(moving.(
Case(1:(striking(EEs(not(given(ample(opportunity(to(explain(their(side.((
Without( waiting( for( the( result( of( MR,( Phimco( elevated( its( case( to( CA(
through(a(petition(for(certiorari(under(Rule(65.(
CA:( Dismissed( petition( (in( favor( of( Union).( Hence,( present( petition( for(
review(on(certiorari.(

(
(
ISSUES/HELD:((
WoN(Unions(strike(was(legal(%NO(
(
RATIO:%
In( the( present( case,( Union( fully( satisfied( the( legal( procedural( requirements(
for(staging(a(strike.(However,(despite%the%validity%of%the%purpose%of%a%strike%
and% compliance% with% the% procedural% requirements,% a% strike% may% still% be%
held%illegal.((
(

Commission(of(Prohibited(Acts(
A(strike(may(still(be(held(illegal(where%the%means%employed%are%illegal,(as(
provided(under(Art.264((now(278)((e):(
No$person$engaged$in$picketing$shall$commit$any$act$of$violence,$coercion$or$
intimidation$ or$ obstruct$ the$ free$ ingress$ to$ or$ egress$ from$ the$ employer's$
premises$for$lawful$purposes,$or$obstruct$public$thoroughfares.$

(
Based(on(SCs(examination(of(the(evidence,(it(found(the(strike(illegal.1(While(
the( strike( undisputedly( had( not( been( marred( by( actual( violence( and( patent(
intimidation,( the% picketing% that% Union% undertook% as% part% of% its% strike%
activities%effectively%blocked%the%free%ingress%to%and%egress%from%Phimcos%
premises,% thus% preventing% non\striking% EEs% and% company% vehicles% from%
entering.(In(this(manner,(the(picketers(violated(Art.264/278(e).(
While( a( strike% focuses% on% stoppage% of% work,( picketing( focuses( on(
publicizing(the(labor(dispute(and(its(incidents(to(inform(the(public(of(what(is(
happening(in(the(company(struck(against.((((
(
(See$ doctrine)$ While( the( right( of( employees( to( publicize( their( dispute( falls(
within( the( protection( of( freedom( of( expression( and( the( right( to( peaceably(
assemble( to( air( grievances,( these( rights( are( by( no( means( absolute.((Protected(
picketing(does(not(extend(to(blocking(ingress(to(and(egress(from(the(company(
premises.((
$
As$applied.$
That% the% picket% was% moving,% was% peaceful% and% was% not% attended% by%
actual% violence% may% not% free% it% from% taints% of% illegality% if% the% picket%
effectively%blocked%entry%to%and%exit%from%the%company%premises.(
Significantly,( the( photographs% taken% of% the% strike% area,% capturing% the%
strike% in% its% various% stages% and% showing% how% the% strikers% actually%
conducted%the%picket,%validated%the%testimonies%adduced.(While(the(picket(is(
moving,( the( movement% was% in% circles,% very% close% to% the% gates,% with% the%
strikers% in% a% hand\to\shoulder% formation% without% a% break% in% their% ranks,(
thus(preventing(non?striking(workers(and(vehicles(from(coming(in(and(getting(
out.((Supported% by% actual% blocking% benches% and% obstructions,( what( the(
union( demonstrated( was( a( very( persuasive( and( quietly( intimidating( strategy(
whose(chief%aim%was%to%paralyze%the%operations%of%the%company,%not%solely%
by% the% work% stoppage% of% the% participating% workers,% but% by% excluding% the%
company% officials% and% non\striking% employees% from% access% to% and% exit%
from% the% company% premises.((No( doubt,( the( strike( caused( the( company(
operations( considerable( damage.( The( blockade( even( went( to( the( point( of(
causing(the(build(up(of(traffic(in(the(immediate(vicinity(of(the(strike(area.((
(
Intimidation((see(doctrine)(
Art.264/278(e)(likewise(provides(that(picketing%carried%on%with%violence,%
coercion% or% intimidation% is% unlawful.( The( manner( in( which( the( respondent(
union( officers( and( members( conducted( the( picket% had% created% such% an%

intimidating% atmosphere( that( non?striking( employees( and( even( company(

vehicles(did(not(dare(cross(the(picket(line,(even(with(police(intervention.2(Those(
who(dared(cross(the(picket(line(were(stopped.(The(testimonies(of(non?striking(
employees,(who(were(prevented(from(gaining(entry(into(the(company(premises,(
and(confirmed(no(less(by(two(officers(of(the(union,(are(on(record.(
((
Liabilities(of(union(officers(and(members(
As( explained( in( Samahang$ Manggagawa$ sa$ Sulpicio$ Lines,$ Inc.aNAFLU$ v.$
Sulpicio$Lines,$Inc.,$the(effects(of(illegal(strikes,(outlined(in(Art.264/278(a),(make(
a(distinction(between(participating(workers(and(union(officers.(The%services%of%
an%ordinary%striking%worker%cannot%be%terminated%for%mere%participation%
in% an% illegal% strike;% proof% must% be% adduced% showing% that% he% or% she%
committed% illegal% acts% during% the% strike.( The( services( of( a( participating(
union( officer,( on( the( other( hand,( may( be( terminated,( not( only( when( he(
actually( commits( an( illegal( act( during( a( strike,( but( also( if( he( knowingly(
participates(in(an(illegal(strike.((
In(all(cases,(the(striker%must%be%identified.(Substantial%evidence,(available(
under( the( attendant( circumstances,( suffices( to( justify( the( imposition( of( the(
penalty(of(dismissal.(
In(the(present(case,(the(10(respondent(Union(officers(stand(to(be(dismissed(
as(participating( union( officers,( while( the( 37( respondent( Union( members( stand(
to( be(dismissed( for( their( illegal( acts( in( the( conduct( of( the( unions( strike( as(
Phimco( was( able( to( individually( identify( them(thru( the( affidavits( of( co?
employees((Panis(and(Ortiz)(and(Personnel(Manager(Cinco,(and(photographs.((((
((
Phimco(failed(to(observe(due(process%
Phimco(violated(the(twin?notice(requirements(of(due(process(under(LC(when(
it( dismissed( the( respondents:( (1)( a( written( notice( specifying( the( grounds( for(
termination( and(giving( the( employee( a( reasonable( opportunity( to( explain( his(
side(and( (2)( another( written( notice( indicating( that,( upon( due( consideration( of(
all( circumstances,( grounds( have( been( established( to( justify( the( employer's(
decision(to(dismiss(the(employee.(
In( the( present( case,( it( does( not( appear( that( the( Union( officers( were(
specifically( informed( of( the( charges( against( them( and( given( the( chance( to(
explain( and( present( their( side.( As( to( the( Union( members,( only( 36( Union(
members(were(notified(of(the(charges(against(them,(but(they(were(not(given(an(
ample(opportunity(to(be(heard(and(to(defend(themselves.(
Therefore,( apply( Agabon( ruling:( Employer,( despite( the( just( cause( for(
dismissal,( must( pay( the( dismissed( workers( nominal( damages( (P30K)( as(
indemnity(for(the(violation(of(the(workers(right(to(statutory(due(process.((
(
(

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STA%ROSA%COCA\COLA%PLANT%EMPLOYEES%UNION,%et%al.%V.%COCA\COLA%
BOTTLERS%PHILS.,%INC.(
January$24,$2007$|$Callejo,$Sr.,$J.$

Prof.$Sobrevias$for$CocaaCola$Bottlers.$$
$
SUMMARY:% When( the( negotiation( for( CBA( reached( an( impasse,( the( union,( by(
virtue(of(the(mayors(permit,(conducted(a(picketing(where(union(members(and(
officers( left( their( works( for( 3( hrs( and( marched( to( and( fro( on( the( side( of( the(
highway.( The( company( filed( a( case( to( declare( the( activity( as( a( strike( and( an(
illegal(one(at(that.(The(contention(is(on(whether(the(said(acts(constitute(a(strike.(
The(SC(ruled(that(it(was(a(strike(and(not(a(mere(picketing,(using(the(definition(of(
a(strike(in(the(LC.(
%
DOCTRINE:%Art.(212,(LC(defines(strike(as(a(temporary(stoppage(of(work(by(the(
concerted( action( of( employees( as( a( result( of( an( industrial( or( labor( dispute.(In(
Bangalisan$ v.$ Court$ of$ Appeals,(the( Court( ruled( that( the( fact( that( the(
conventional( term( strike( was( not( used( by( the( striking( employees( to( describe(
their( common( course( of( action( is( inconsequential,( since( the( substance( of( the(
situation,( and( not( its( appearance,( will( be( deemed( to( be( controlling.( (The( term(
strike(encompasses(not(only(concerted(work(stoppages,(but(also(slowdowns,(
mass( leaves,( sit?downs,( attempts( to( damage,( destroy( or( sabotage( plant(
equipment(and(facilities,(and(similar(activities.(.(.(what(is(definitive(of(whether(
the(action(staged(by(petitioners(is(a(strike(and(not(merely(a(picket(is(the(totality(
of(the(circumstances(surrounding(the(situation.$
%
FACTS:%
The( Sta.( Rosa( Coca?Cola( Plant( Employees( Union( (Union)( is( the( SEBA( of( the(
regular( daily( paid( workers( and( the( monthly( paid( non?commission?earning(
employees(of(the(Coca?Cola(Bottlers(Philippines,(Inc.((Company)(in(its(Sta.(Rosa,(
Laguna(plant.(
(
Upon(the(expiration(of(the(CBA,(the(Union(informed(the(Company(of(its(desire(to(
renegotiate( its( terms.( The( CBA( meetings( commenced( on( July( 26,( 1999,( where(
the(Union(and(the(Company(discussed(the(ground(rules(of(the(negotiations.(The(
Union( insisted( that( representatives( from( the( Alyansa( ng( mga( Unyon( sa( Coca?
Cola( be( allowed( to( sit( down( as( observers( in( the( CBA( meetings.( The( Union(
officers(and(members(also(insisted(that(their(wages(be(basedon(their(work(shift(
rates.( For( its( part,( the( Company( was( of( the( view( that( the( members( of( the(
Alyansa( were( not( members( of( the( bargaining( unit.( The( Alyansa( was( a( mere(
aggregate( of( employees( of( the( Company( in( its( various( plants;( and( is( not( a(
registered(labor(organization.(Thus,(an(impasse(ensued.(
(
On(August(30,(1999,(the(Union,(its(officers,(directors(and(six(shop(stewards(filed(
a( Notice( of( Strike( with( the( NCMB.( The( Company( filed( a( Motion( to( Dismiss(
alleging(that(the(reasons(cited(by(the(Union(were(not(valid(grounds(for(a(strike.(
The(Union(then(filed(an(Amended(Notice(of(Strike.(

(
Meanwhile,(the(Union(decided(to(participate(in(a(mass(action(organized(by(the(
Alyansa( in( front( of( the( Companys( premises.( 106( Union( members,( officers( and(
members(of(the(BoD,(and(shop(stewards,(individually(filed(applications(for(leave(
of( absence( for( September( 21,( 1999.( Certain( that( its( operations( in( the( plant(
would( come( to( a( complete( stop( since( there( were( no( sufficient( trained(
contractual( employees( who( would( take( over,( the( Company( disapproved( all(
leave( applications( and( notified( the( applicants( accordingly.( A( day( before( the(
mass(action,(some(Union(members(wore(gears,(red(tag(cloths(stating("YES(KAMI(
SA(STRIKE"(as(headgears(and(on(the(different(parts(of(their(uniform,(shoulders(
and(chests.(
(
The(Office(of(the(Mayor(issued(a(permit(to(the(Union,(allowing(it("to(conduct(a(
mass( protest( action( within( the( perimeter( of( the( Coca?Cola( plant( on( September(
21,(1999(from(9:00(a.m.(to(12:00(noon."(Thus,(the(Union(officers(and(members(
held(a(picket(along(the(front(perimeter(of(the(plant(on(September(21,(1999.(All(
of( the( 14( personnel( of( the( Engineering( Section( of( the( Company( did( not( report(
for(work,(and(71(production(personnel(were(also(absent.(As(a(result,(only(one(of(
the( three( bottling( lines( operated( during( the( day( shift.( All( the( three( lines( were(
operated(during(the(night(shift(with(cumulative(downtime(of(five((5)(hours(due(
to( lack( of( manning,( complement( and( skills( requirement.( The( volume( of(
production(for(the(day(was(short(by(60,000(physical(cases(versus(budget.(
(
On( October( 13,( 1999,( the( Company( filed( a( Petition( to( Declare( Strike( Illegal(
alleging(that(the(mass(concerted(action(was(clearly(a(strike(and(since(the(Union(
did(not(observe(the(requirements(mandated(by(law,(i.e.,(strike(vote,(cooling?off(
period(and(reporting(requirements,(the(strike(was(therefore(illegal.(The(NCMB(
recommended( that( the( Notice( of( Strike( of( the( Union( be( converted( into( a(
preventive( mediation( case.( After( conciliation( proceedings( failed,( the( parties(
were(required(to(submit(their(respective(position(papers.(LA(declared(the(strike(
illegal.(NLRC(affirmed(LA.(CA(dismissed(petition.(
(
The(Union(answered(by(alleging(that(it(was(not(a(strike(but(just(a(valid(exercise(
of( their( right( to( picket,( which( is( part( of( the( right( of( free( expression( as(
guaranteed(by(the(Constitution.((
%
LA:%the(mass(leave(was(a(strike(under(art.(212,(LC:(
1)(Union(itself(admitted(that(on(the(said(date,(members(and(officers(did(not(
report( for( work.( Instead,( they( all( assembled( in( front( of( the( Sta.( Rosa( Plant(
and(picketed(the(premises.(Very(clearly,(there(was(a(concerted(action(here(
on(the(part(of(the(respondents(brought(about(a(temporary(stoppage(of(work(
at(two(out(of(three(bottling(lines(at(the(Sta.(Rosa(Plant(
2)(It(is(evident(that(respondents(concerted(activity(resulted(in(a(temporary(
stoppage(of(work(at(the(Sta.(Rosa(Plant(of(the(company(
3)(Such(concerted(activity(by(respondents(was(by(reason(of(a(labor(dispute(

The( strike( was( illegal( since( there( was( no( showing( that( the(Union(conducted( a(
strike(vote,(observed(the(prescribed(cooling?off(period,(much(less,(submitted(a(
strike(vote(to(the(DOLE(within(the(required(time.(Consequently,(for(knowingly(
participating(in(the(illegal(strike,(the(individual(petitioners(were(considered(to(
have(lost(their(employment(status.(
NLRC%and%CA:%affirmed(LA.(
(
ISSUES:%
1. WON(the(mass(action(was(a(strike?((YES(
2. If(in(the(affirmative,(was(it(legal(?(NO(
3. WON( the( individual( officers( and( shop( stewards( of( petitioner(Union(be(
dismissed(from(their(employment?(((YES((
RATIO:%
The%mass%action%was%a%strike%
Union:( It( was( not( a( strike( but( a( picket,( a( valid( exercise( of( their( constitutional(
right(to(free(expression(and(assembly.(It(was(a(peaceful(mass(protest(action(to(
dramatize(their(legitimate(grievances(against(respondent.(
They( did( not( intend( to( have( work( stoppage( as( they( knew( beforehand(
that(there(was(no(bottling(operation(scheduled(on(that(day.(
They(applied(for(leaves(of(absences.(
They( obtained( a( mayors( permit( and( they( faithfully( complied( with( the(
conditions(therein.(
They( merely( marched( to( and( fro( at( the( side( of( the( highway,( did( not(
block(ingress(or(egress(of(companys(premises.(
Request(to(hold(the(activity(for(4(hrs(was(reduced(to(3(hrs(and(they(all(
went(back(to(work(after.(
IBM?KMU( in( San( Fernando( Plant( staged( simultaneous( walkout( from(
work(and(there(the(SOLE(declared(the(walkout(as(a(mass(action(and(not(
a( strike.( Coca?Cola( accepted( the( SOLEs( decision.( It( should( likewise(
apply(here.(
SC:(It(was(a(strike(and(not(a(mere(picket.(The(factual(findings(of(LA(that(it(was(a(
strike(which(was(affirmed(by(both(the(NLRC(and(CA(are(conclusive(to(the(SC.(
(
Strike:( Art.( 212,( LC( defines( strike(as( a( temporary( stoppage( of( work( by( the(
concerted(action(of(employees(as(a(result(of(an(industrial(or(labor(dispute.((The(
fact(that(the(conventional(term(strike(was(not(used(by(the(striking(employees(
to( describe( their( common( course( of( action( is( inconsequential,( since( the(
substance( of( the( situation,( and( not( its( appearance,( will( be( deemed( to( be(
controlling.(The(term(strike(encompasses(not(only(concerted(work(stoppages,(
but( also( slowdowns,( mass( leaves,( sit?downs,( attempts( to( damage,( destroy( or(
sabotage( plant( equipment( and( facilities,( and( similar( activities.( (Bangalisan( vs(
CA)(
%
Picketing:( involves( merely( the( marching( to( and( fro( at( the( premises( of( the(
employer,( usually( accompanied( by( the( display( of( placards( and( other( signs(

making( known( the( facts( involved( in( a( labor( dispute.((As( applied( to( a( labor(
dispute,(to(picket(means(the(stationing(of(one(or(more(persons(to(observe(and(
attempt( to( observe.(The( purpose( of( pickets( is( said( to( be( a( means( of( peaceable(
persuasion.(
(
Labor% dispute:( includes( any( controversy( or( matter( concerning( terms( or(
conditions( of( employment( or( the( association( or( representation( of( persons( in(
negotiating,(fixing,(maintaining,(changing(or(arranging(the(terms(and(conditions(
of( employment,( regardless( of( whether( the( disputants( stand( in( the( proximate(
relation(of(employer(and(employee.(
ICAB,% there( was( a( labor( dispute.( The( basic( elements( of( a( strike( are( present( in(
this( case:( 106( members( of( petitioner(Union,( whose( respective( applications( for(
leave(of(absence(on(September(21,(1999(were(disapproved,(opted(not(to(report(
for(work(on(said(date,(and(gathered(in(front(of(the(company(premises(to(hold(a(
mass( protest( action.( Petitioners( deliberately( absented( themselves( and( instead(
wore(red(ribbons,(carried(placards(with(slogans(such(as:(YES(KAMI(SA(STRIKE,(
PROTESTA( KAMI,( SAHOD,( KARAPATAN( NG( MANGGAGAWA( IPAGLABAN,(
CBA?WAG( BABOYIN,( STOP( UNION( BUSTING.( They( marched( to( and( fro( in(
front( of( the( companys( premises( during( working( hours.((Thus,( petitioners(
engaged( in( a( concerted( activity( which( already( affected( the( companys(
operations.(The(mass(concerted(activity(constituted(a(strike.(Mayors(permit(is(
not( conclusive( evidence( that( their( action/activity( did( not( amount( to( a( strike.(
The(Mayors(description(of(what(activities(petitioners(were(allowed(to(conduct(
is( inconsequential.( What( is( definitive( of( whether( the( action( staged( by(
petitioners(is(a(strike(and(not(merely(a(picket(is(the(totality(of(the(circumstances(
surrounding(the(situation.(
%
On%the%illegality%of%the%strike%
Art.(263(states(the(requirements(for(a(strike(to(be(valid15.(The(said(requirements(
are(MANDATORY.(In(the(case(at(bar,(the(union(totally(ignored(the(requirements.(
(
There(is(no(showing(that(respondents(had(observed(the(prescribed(cooling?off(
period,(conducted(a(strike(vote,(much(less(submitted(a(strike(vote(report(to(the(
Department( of( Labor( within( the( required( time.( .( .( the( intention( of( the( law( in(
requiring(the(strike(notice(and(strike?vote(report(as(mandatory(requirements(is(
to(reasonably(regulate(the(right(to(strike(which(is(essential(to(the(attainment(of(
legitimate(policy(objectives(embodied(in(the(law.(Verily,(substantial(compliance(
with(a(mandatory(provision(will(not(suffice.(Strict(adherence(to(the(mandate(of(
the(law(is(required.((
(

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Art.( 263( of( the( Labor( Code( must( be( observed:( (a)( a( notice( of( strike( filed( with( the( DOLE( 30( days( before( the(
intended(date(thereof,(or(15(days(in(case(of(unfair(labor(practice;((b)(strike(vote(approved(by(a(majority(of(the(total(
union(membership(in(the(bargaining(unit(concerned(obtained(by(secret(ballot(in(a(meeting(called(for(that(purpose,(
(c)(notice(given(to(the(DOLE(of(the(results(of(the(voting(at(least(seven(days(before(the(intended(strike.(
(

15

Aside(from(the(above(infirmity,(the(strike(staged(by(respondents(was,(further,(in(
violation(of(the(CBA16.(The(union(had(not(referred(their(issues(to(the(grievance(
machinery( as( a( prior( step.( Instead,( they( chose( to( go( on( strike( right( away,(
thereby(bypassing(the(required(grievance(procedure(dictated(by(the(CBA.(
%
On%shop%stewards%being%considered%as%officers%
Under( Section( 501(a)( and( (b)( of( the( Landrum( Griffin( Act( of( 195917,(shop(
stewards( are( officers( of( the(Union.( Admittedly,( there( is( no( similar( provision( in(
the( Labor( Code( of( the(Philippines;( nonetheless,( petitioners( who( are( shop(
stewards(are(considered(union(officers:(
(
Officers(normally(mean(those(who(hold(defined(offices.((An(officer(is(any(person(
occupying( a( position( identified( as( an( office.((An( office( may( be( provided( in( the(
constitution(of(a(labor(union(or(by(the(union(itself(in(its(CBA(with(the(employer.(
The( unions( constitution( and( by?laws( define( the( position( of( a( shop( steward.18(
Likewise,(sec.(6,(rule(19,(book(5(of(the(Implementing(rules(of(the(LC(provides(the(
duties(of(a(shop(steward.(
(
Thus,(a(shop(steward(is(appointed(by(the(Union(in(a(shop,(department,(or(plant(
serves(as(representative(of(the(Union,(charged(with(negotiating(and(adjustment(
of(grievances(of(employees(with(the(supervisor(of(the(employer.(
(

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
(SECTION(1,(Art.(VI(?((The(UNION(agrees(that(there(shall(be(no(strike,(walkout,(stoppage(or(slowdown(of(work,(
boycott,(secondary(boycott,(refusal(to(handle(any(merchandise,(picketing,(sitdown(strikes(of(any(kind,(sympathetic(
or( general( strike,( or( any( other( interference( with( any( of( the( operations( of( the( COMPANY( during( the( term( of( this(
Agreement,(so(long(as(the(grievance(procedure(for(which(provision(is(made(herein(is(followed(by(the(COMPANY.(
!

16

17

!Sec.!501!(a)!!!!!The!officers,!agents,!shop!stewards,!and!other!representatives!of!a!labor!organization!occupy!positions!
of!trust!in!relation!to!such!organization!and!its!members!as!a!group.!It!is,!therefore,!the!duty!of!each!such!person,!taking!
into!account!the!special!problems!and!functions!of!a!labor!organization,!to!hold!its!money!and!property!solely!for!the!
benefit! of! the! organization! and! its! members! and! to! manage,! invest,! and! expend! the! same! in! accordance! with! its!
constitution!and!bylaws!and!any!resolutions!of!the!governing!bodies!adopted!thereunder,!to!refrain!from!dealing!with!
such! organization! as! an! adverse! party! in! any! matter! connected! with! his! duties! and! from! holding! or! acquiring! any!
pecuniary!or!personal!interest!which!conflicts!with!the!interest!of!such!organization,!and!to!account!to!the!organization!
for! any! profit! received! by! him! in! whatever! capacity! in! connection! with! transactions! conducted! by! him! or! under! his!
direction!on!behalf!of!the!organization.!A!general!exculpatory!resolution!of!a!governing!body!purporting!to!relieve!any!
such!person!of!liability!for!breach!of!the!duties!declared!by!this!section!shall!be!void!as!against!public!policy.!
(b)!!!!!!!!When!any!officer,!agent,!shop!steward,!or!representative!of!any!labor!organization!is!alleged!to!have!violated!the!
duties!declared!in!subsection!(a)!of!this!section!and!the!labor!organization!or!its!governing!board!or!officers!refuse!or!
fail!to!sue!or!recover!damages!or!secure!an!accounting!or!other!appropriate!relief!within!a!reasonable!time!after!being!
requested!to!do!so!by!any!member!of!the!labor!organization,!such!member!may!sue!such!officer,!agent,!shop!steward,!
or! representative! in! any! district! court! of! the! United! States! or! in! any! State! court! of! competent! jurisdiction! to! recover!
damages!or!secure!an!accounting!or!other!appropriate!relief!for!the!benefit!of!the!labor!organization.!
(

18

!SECTION!6.!Shop&Stewards.&The!UNION!shall!certify!a!total!of!eight!(8)!shop!stewards!and!shall!inform!management!of!
the!distribution!of!these!stewards!among!the!departments!concerned.!Shop!Stewards,!union!officers!and!members!or!
employees!shall!not!lose!pay!for!attending!UnionLManagement!Labor!dialogues,!investigations!and!grievance!meetings!
with!management.!

The( jurisdiction( of( shop( stewards( and( the( supervisors( includes( the(
determination( of( the( issues( arising( from( the( interpretation( or( even(
implementation(of(a(provision(of(the(CBA,(or(from(any(order(or(memorandum,(
circular( or( assignments( issued( by( the( appropriate( authority( in( the(
establishment.((In( fine,( they( are( part( and( parcel( of( the( continuous( process( of(
grievance( resolution( designed( to( preserve( and( maintain( peace( among( the(
employees( and( their( employer.((They( occupy( positions( of( trust( and( laden( with(
awesome(responsibilities.(
(
In(this(case,(instead(of(playing(the(role(of("peacemakers"(and(grievance(solvers,(
the( petitioners?shop( stewards( participated( in( the( strike.( Thus,( like( the( officers(
and( directors( of( petitioner( Union( who( joined( the( strike,( petitioners?shop(
stewards(also(deserve(the(penalty(of(dismissal(from(their(employment.(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(

Sukhothai% Cuisine% and% Restaurant% v.% CA,% NLRC,% Philippine% Labor% Alliance%
Council% (PLAC)% Local% 460% Sukhothai% Restaurant% Chapter,% and% 29% workers%
(6%officers%of%the%Union,%23%members)%
17(July(2006;(Austria?Martinez,(J.(
Digest(prepared(by(Jethro(Koon(
Union,( on( the( ground( of( ULP( by( petitioner,( particularly( union?busting,( filed( a(
Notice( of( Strike,( then( conducted( a( Strike( Vote( and( reported( the( same( to( the(
NCMB((in(short(they(followed(the(procedure).(However,(the(issue(which(was(the(
SM(of(the(Notice(and(Vote(were(submitted(to(voluntary(arbitration.(During(the(
pendency(of(the(arbitration,(petitioner(terminated(2(union(members(which(lead(
to(the(Union(conducting(a(wildcat( strike%6%months%after,(re\filed%a%notice%of%
strike( and( without( conducting( a( vote,( then( reporting( the( results( to( the( NCMB,(
conducted(an(actual(strike.(

9.

June% 25,% 1999:% Notice% of% Strike% was% refilled.( Protest( turned( into( a(
sit?down(strike(

10. June(26,(1999:(Strike(was(converted(to(actual(strike(
11. Petitioner(filed(a(complaint(for(Illegal%Strike%with(NLRC((
12. LA:% Declared% strike% illegal,( union( officers( and( members( validly(
terminated(
Dec( 3( and( 11s( Notice( and( Vote( referred( to( a( dispute(
submitted% for% arbitration,% so% it% cannot% apply% to% a% strike% 6%
months% later.( Union( failed% to% comply% with% mandatory%
requisites%for%strike.(
13. NLRC:%Reversed%LA,%dismissed(the(complaint(and(ordered(workers(to(
return(to(work(and(for(Sukhothai(to(accept(them.((

Strike(was(illegal:(no(strike(or(lockout(can(be(made(during(the(pendency(of(the(
case.( Even( if( the( ground( is( for( union?busting,( only( the( 15?day( cool?off( period(
may(be(dispensed(with(and(not(the(other(requirements.(

Petitioner% is% guilty% of% union\busting% and( violated( their( Dec(

10(agreement(not(to(terminate(during(pendency(of(arbitration.((
Dec% 3% and% 11s% Notice% and% Vote% are% applicable% to% the% June%
24,%25,%26%strike%since%same%issues%of%ULP%are(involved.((

I.(Facts(
1.

2.

March% 1998:% Majority( of( the( EEs( of( petitioner( organized( themselves(
into( a( union( which( affiliated( with( Phil.( Labor( Alliance( Council( (PLAC)(
and( was( designated( as( PLAC( Local( 460( Sukhothai( Restaurant( Chapter.(
(Union)(
Dec% 3,% 1998:% The( Union( filed% a% Notice% of% Strike% with( the( NCMB( on(
ground(of(ULP(particularly(act(of(harassment,(fault?finding,(and(union?
busting(through(coercion(and(interference(with(union(affairs.(

3.

Dec% 10,% 1998:% A( conciliation% conference( was( held( and( both( parties(
agreed(that(there(would(be(no(termination(of(services(of(respondents(
during(the(pendency(of(the(case((

4.

Dec%11,%1998:%A%Strike%Vote%under(the(supervision(of(NCMB(personnel(
was(held(

5.

Dec(21,(1998:(Results(of(the(Strike(Vote(were(submitted(to(NCMB.((

6.

Jan%21,%1998:%Parties(entered(into(a(Submission%Agreement%agreeing(
to( submit( the( issue( of( ULP( (which( is( the( subject( matter( of( the( Notice(
and(Strike(Vote)(for(voluntary(arbitration((to(prevent(the(strike)(

7.

Mar% 24,% 1999:% Petitioner( through( its( president( Garcia( dismissed% a%

union% member% for( alleged( petty( quarrel( with( a( co?EE( in( Feb.( Union(
filed(a(complaint(for(Illegal(Dismissal.(

8.

June% 24,% 1999:% Petitioner( again( relieved( a( union( member( from( post(
(cook).( Unions( VP( protested( to( Garcia( the( termination.( Shortly%
thereafter,%Union%staged%a%wildcat%strike.(

II.(Issues(
WON(strike(staged(by(Union(was%illegal%%YES(
WON( private( respondents( are( deemed( to( have( lost( their( employment( by(
committing(illegal(acts(during(the(strike((YES(
III.(Unions(arguments(
1.

Filing( of( the( Notice( on( Dec( 3( and( the( Strike( Vote( on( Dec( 11,( the(
submission( to( NCMB( of( the( results( and( the( observation( of( the( 15( day(
cooling( off( period( in( case( of( ULP,( all( satisfy( the( mandatory(
requirements(under(Art(269(of(the(LC(and%are%applicable%to%the%June%
1999%strike,%as(per(Art(269((f)((decision(to(strike(valid(for(the(duration(
of(the(dispute)(

2.

Even( assuming( that( they( cannot( be( applied( to( the( June( strike,( since(
petitioner( was( guilty( of( union?busting,( union% can% take% action%
immediately%(

IV.(Ratio(
1.

Undisputed(is(the(fact(that(when(Union(staged(the(strike(in(June(1999,(
voluntary%arbitration%between%the%parties%was%ongoing.%The(issues(
to(be(resolved(there(were(the(same(issues(stated(in(the(Notice(of(Strike(
of(Dec(3,(1998.((

2.

Art%270(a)(second(paragraph(of(the(LC(states(that(no(strike(or(lockout(
shall( be( declared( after% submission% of% the% dispute% to% voluntary%

arbitration% or% during% pendency% of% cases% involving% the% same%

grounds%for%the%strike%or%lockout%(see(LC(for(whole(provision)(
The( rationale( for( the( prohibition:( once( jurisdiction( over( labor(
dispute(is(acquired(by(competent(authority,(jurisdiction(should(
not(be(interfered(with(by(applying(the(coercive(processes(of(a(
strike.((

before%the%intended%strike%or%lockout.%(
In(sum:(if(there(is(union?busting(the(requirements(of(1)(notice;(
2)( strike( vote;( 3)( 7( day( report( period( ( cannot( be( dispensed(
with.((
5.

Policy(of(the(state(to(promote(and(emphasize(primacy%of%free(
collective( bargaining( and( negotiations,% including% voluntary%
arbitration,% mediation,% and% conciliation% as% modes% of%
settling%labor%or%industrial%disputes.%Relations(between(ERs(
and( EEs( rest( on( essentially( voluntary( basis( and( industrial(
peace(cannot(be(secured(by(compulsion(of(law.((
3.

270(provides(for(illegal(activities(during(the(strike.((
Jurisprudence( have( also( provided( for( some( activities( that( are(
prohibited( like( shouting( slanderous( and( scurrilous( words,(
unnecessary( and( obscene( language,( libelous( remarks,( abusive(
and(threatening(language,(formation(of(human(cordon(to(block(
ways,( coercing( others( to( prevent( them( from( working,(
threatening( bodily( harm,( where( EEs( hijacked( ERs( bus,(
destruction( of( company( property,( use( of( Molotov( bombs,( etc.(
(See(FN(31(in(SCRA(for(more(activities)(

The( dismissals( of( the( 2( union( members( which( allegedly( triggered( the(
wildcat(strike(are%not%sufficient%grounds%to%justify%radical%recourse%
on%part%of%the%Union(
The( questions( regarding( their( dismissal( are( connected( to( the(
alleged( breach( of( the( guarantee,( and( other( incidents( of( ULP(
which( should( have( been( raised( in( the( voluntary( arbitration(
which(was(commenced(precisely(to(address(said(issues.(((
Other( recourse( of( the( Union:( could( also( have( just( instituted(
illegal( dismissal( cases,( or( submitted( it( to( the( grievance(
machinery( under( their( CBA,( or% to% just% terminate% the%
voluntary% arbitration% case% and% complete% the% mandatory%
procedure%for%lawful%strike.%(

4.

Union% was( aware( of( the( fact( of( the( pendency( of( the( arbitration(
proceedings,(and(thus(it(cannot%invoke%good%faith%as%a%defense.%(

5.

With(all(these(considerations:((Strike(was(ILLEGAL.((

As( to( the( second( argument( of( the( Union( re:( ULP( so( we( can( dispense( with( the(
requirements.((
1.

It(is(only(the(15?day(cooling(off(period(that(may(be(dispensed(with.((

2.

Art%269%(f)%should%be%read%with%Sec%3,%Rule%XXII,%Book%V%of%the%IRR%
which( states( that( in( case( of( union?busting,( 15( day( cooling( off( period(
shall(not(apply(and(union(may(take(action(immediately(after%the%strike%
vote%is%conducted%and%results%are%submitted%to%NCMB.%(

3.

NCMB(Primer(on(Strike,(Picketing(and(Lockout(also(provides(the(same(
wording.((

4.

IRR% clarifies% Art% 269(c)% of( the( LC( in( that( union( may( strike(
immediately( in( case( of( union( busting( provided( that( strike% vote% is%
conducted%and%the%results%submitted%in%every%case%at%least%7%days%

Even( if( the( strike( was( declared( as( valid( because( the( objective( was(
lawful,( strike( may( be( declared( invalid( where( the( means( employed( are(
illegal(

6.

For( the( union% officers:( knowingly( participating( in( an( illegal( strike( is(
ground( for( dismissal;( also( when( he( commits( illegal( acts.( For( union%
members:(Substantial(proof%or(evidence(is(that(they(committed(illegal(
acts(is(enough(to(justify(imposition(of(penalty(of(dismissal.((

7.

In(this(case,(evidence(on(record(show(that(the(respondents((both(union(
officers(6)(and(23(members)(engaged(in(illegal(acts(during(the(strike((
Intimidation(and(harassment(of(customers(to(discourage(them(
from( patronizing( petitioner,( waving( their( arms( and( shouting(
Nilagyan(naming(ng(lason(ang(pagkain(dyan!,((
discredited(the(reputation(of(the(establishment(
Angry( and( unruly( behavior( calculated( to( cause( commotion(
affecting(nearby(establishments(in(the(mall(
Openly( cursing( and( using( abusive( language( towards( the(
management.(
Preventing( non?strikers( from( entering,( plus( deliberate(
blocking(their(movements(inside(the(restaurant(
And( even( shouting( Granada!( causing( panic( among( the(
customers( (it( was( the( Union( President( Emmanuel( Cayno( who(
shouted(

LIWAYWAY%PUBLICATIONS,%INC.%v.%PERMANENT%CONCRETE%WORKERS%
UNION,%et%al%
October$23,$1981$|$J.$Guerrero$

By:$Perry$
(
SUMMARY:%
The( striking( union( prevented( the( employees( of( the( plaintiff,( Liwayway(
Publications(from(entering(the(bodega(that(the(latter(was(leasing.(Other(than(the(
fact( that( the( bodega( of( the( plaintiff( and( the( workplace( of( the( members( of( the(
striking(union(are(in(the(same(premises,(there(is(no(other(connection(between(
the(plaintiff(and(the(striking(union.(Therefore,(the(plaintiff(sought(the(issuance(
of(a(permanent(injunction(against(the(striking(union(to(prevent(the(latter(from(
preventing(the(former(from(accessing(its(bodega.(
(
The( SC( ruled( that( the( plaintiff( is( entitled( to( such( relief.( The( right( to( strike( is(
necessarily(subsumed(in(the(freedom(of(speech(guaranteed(by(the(Constitution.(
However,( the( exercise( of( the( right( is( not( without( limitations.( The( Courts( may(
intervene(and(regulate(the(right(to(protect(innocent(bystanders(or(those(who(
have(no(industrial(connection(or(have(an(interest(totally(foreign(to(the(dispute(
of(the(striking(union(and(its(company.(
%
FACTS:%
The(Plaintiff(is(leasing(the(premises(of(the(Permanent(Concrete(Products(in(Sta.(
Mesa.(The(premises(of(the(plaintiff(is(separated(from(the(premises(of(the(Lessor?
Corporation(by(a(concrete(wall(and(has(its(own(entrance(and(road(leading(to(the(
national(road.(Moreover(the(distance(between(the(two(entrances(is(more(or(less(
200(meters.(
(
On(10(September(1964,(the(employees(of(the(lessor?corporation(staged(a(strike(
against(the(corporation.(However(for(unknown(reasons,(the(striking(employees(
prevented( the( truck( of( the( plaintiff( from( entering( the( compound( and(
intimidated(and(threatened(its(employees(with(bodily(harm.(The(plaintiff(made(
repeated( demands( to( the( defendants( to( stop( their( actions( and( allow( them( to(
access( their( bodega.( However,( their( demands( were( left( unheeded( prompting(
them(to(bring(an(action(with(the(CFI(for(the(issuance(of(an(injunction.(
(
The(Respondent(moved(to(dismiss(the(action(of(the(plaintiff(alleging(that(the(CFI(
had( no( jurisdiction.( They( alleged( that( it( was( the( Court( of( Industrial( Relations(
who( had( exclusive( jurisdiction( since( this( is( a( labor( dispute( involving( ULP.(
Moreover(it(alleged(that(the(plaintiff(had(no(cause(of(action(as(it(was(not(the(real(
party(in(interest.(
(
The(Court(denied(the(motion(to(dismiss(filed(by(the(defendants(and(rendered(a(
decision(in(favor(of(the(plaintiff.(It(declared(permanent(the(writ(of(preliminary(
injunction( and( ordered( the( defendants( to( pay( damages.( The( defendants( bring(
this(matter(to(the(SC(seeking(the(reversal(of(the(decision(of(the(CFI.(
(
ISSUE%/%HELD:%
WON(had(jurisdiction(over(the(case(at(bar.(YES.(

Corollarily,(WON(this(case(involves(or(has(arisen(out(of(a(labor(dispute.(NO.(
%
RULING:%
The(SC(points(out(that(the(plaintiff(is(not(in(any(way(related(to(the(striking(union(
except(for(the(fact(that(it(is(the(lessee(of(a(bodega(in(the(companys(compound.(
The(business(of(the(plaintiff(has(absolutely(no(connection(whatsoever(with(the(
cause(of(the(strike(of(the(union(against(their(company,(much(less(with(the(terms,(
conditions( or( demands( of( the( strikers.( The( plaintiff,( being( an( innocent(
bystander,(is(entitled(to(protection(by(the(regular(courts.(
(
The( SC( notes( that( the( right( to( picket( is( a( phrase( of( the( freedom( of( speech(
guaranteed(by(the(Constitution.(However,(the(right(is(not(an(absolute(one.(The(
courts( are( not( without( power( to( confine( or( localize( the( sphere( of(
communication(or(the(demonstration(to(the(parties(to(the(labor(dispute,(and(to(
insulate( establishments( or( persons( with( no( industrial( connection( or( having(
interest( totally( foreign( to( the( context( of( the( dispute.( Thus,( the( right( may( be(
regulated( at( the( instance( of( third( parties( or( innocent( bystanders.( If( the( law(
fails( to( afford( said( protection,( men( will( endeavor( to( safeguard( their( rights( by(
their(own(might,(take(the(law(in(their(own(hands,(and(commit(acts(which(lead(to(
breaches(of(the(law.(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(

MSF%TIRE%AND%RUBBER,%INC.%vs.%CA%and%PHILTREAD%TIRE%
WORKERS%UNION%

MENDOZA;(August(5,(1999(
SUMMARY:%
During(the(pendency(of(the(labor(dispute(between(the(union(and(
Philtread,(Philtread(entered(into(a(MOA(with(Siam(Tyre(hereby(its(plant(
and(equipment(would(be(sold(to(a(new(company,(MSF(Tire(80%(of(which(
would(be(owned(by(Siam(Tyre(and(20%(by(Philtread,(while(the(land(on(
which(the(plant(was(located(would(be(sold(to(another(company,(60%(of(
which(would(be(owned(by(Philtread(and(40%(by(Siam(Tyre.((As(the(
union(refused(to(desist(picketing(outside(the(plant,(MSF(Tire(filed(a(
complaint(for(injunction(asserting(its(status(as(an(innocent(bystander.((
SC(held(the(petitioner(is(not(an(innocent(bystander(because(its(
personality(is(closely(linked(to(Philtread.(
DOCTRINE:%
The(right(may(be(regulated(at(the(instance(of(third(parties(or(innocent(
bystanders( if( it( appears( that( the( inevitable( result( of( its( exercise( is( to(
create( an( impression( that( a( labor( dispute( with( which( they( have( no(
connection( or( interest( exists( between( them( and( the( picketing( union( or(
constitute(an(invasion(of(their(rights.(
Thus,(an(innocent(bystander,(who(seeks(to(enjoin(a(labor(strike,(must(
satisfy(the(court(that(aside(from(the(grounds(specified(in(Rule(58(of(the(
Rules( of( Court,( it( is( entirely( different( from,( without( any( connection(
whatsoever(to,(either(party(to(the(dispute(and,(therefore,(its(interests(are(
totally(foreign(to(the(context(thereof.(((
FACTS:%

A( labor( dispute( arose( between( Philtread( Tire( and( Rubber(

Corporation( (Philtread)( and( private( respondent,( Philtread( Tire(
Workers(Union((Union)(
Union( filed( a( notice( of( strike( in( the( National( Conciliation( and(
Mediation( Board( charging( Philtread( with( unfair( labor( practices( for(
allegedly(engaging(in(union?busting(for(violation(of(the(provisions(of(
the(collective(bargaining(agreement.((

Thereafter,( they( picketed( and( assembled( outside( the( gate( of(

Philtreads(plant.((
Philtread,(on(the(other(hand,(filed(a(notice(of(lockout.((
The( Secretary( of( Labor( assumed( jurisdiction( over( the( labor( dispute(
and(certified(it(for(compulsory(arbitration.((
During% the% pendency% of% the% labor% dispute,% Philtread% entered%
into% a% Memorandum% of% Agreement% with% Siam% Tyre% Public%
Company%Limited%(Siam%Tyre)%whereby%its%plant%and%equipment%
would% be% sold% to% a% new% company,% herein% petitioner,% 80%% of%
which% would% be% owned% by% Siam% Tyre% and% 20%% by% Philtread,%
while%the%land%on%which%the%plant%was%located%would%be%sold%to%
another% company,% 60%% of% which% would% be% owned% by% Philtread%
and%40%%by%Siam%Tyre.%(
Petitioner( then( asked( respondent( Union( to( desist( from( picketing(
outside(its(plant.((
As(the(respondent(Union(refused(petitioners(request,(petitioner(filed(
a(complaint(for(injunction(with(damages(before(the(RTC(Makati.((
Respondent( Union( moved( to( dismiss( the( complaint( alleging( lack( of(
jurisdiction(on(the(part(of(the(trial(court.((
RTC(denied(petitioners(application(for(injunction(and(dismissed(the(
complaint.(
However,( on( petitioners( motion,( the( trial( court( reconsidered( its(
order(and(granted(an(injunction.(
The( respondent( Union( filed( a( petition( for( certiorari$ and( prohibition(
before(the(CA.((
CA( ruled( in( favor( of( respondent( Union,( hence,( petitioner( filed( this(
petition(asserting(that(its$status$as$an$innocent$bystander$entitled$it$
to$a$writ$of$injunction.(
ISSUE:% Whether( or( not( petitioner( has( shown( a( clear( legal( right( to( the(
issuance( of( a( writ( of( injunction( under( the( innocent( bystander( rule.(
(NO)%

HELD:%Petition(denied.(
In( Philippine$ Association$ of$ Free$ Labor$ Unions$ (PAFLU)$ v.$ Cloribel,( this(
Court,( through( Justice( J.B.L.( Reyes,( stated( the( innocent( bystander( rule(

as(follows:(The(right(to(picket(as(a(means(of(communicating(the(facts(of(a(
labor( dispute( is( a( phase( of( the( freedom( of( speech( guaranteed( by( the(
constitution.((If(peacefully(carried(out,(it(can(not(be(curtailed(even(in(the(
absence(of(employer?employee(relationship.(
The(right(is,(however,(not(an(absolute(one.((While%peaceful%picketing%is%
entitled%to%protection%as%an%exercise%of%free%speech,%we%believe%the%
courts% are% not% without% power% to% confine% or% localize% the% sphere% of%
communication% or% the% demonstration% to% the% parties% to% the% labor%
dispute,% including% those% with% related% interest,% and% to% insulate%
establishments%or%persons%with%no%industrial%connection%or%having%
interest%totally%foreign%to%the%context%of%the%dispute.%
Thus%the%right%may%be%regulated%at%the%instance%of%third%parties%or%
innocent% bystanders% if% it% appears% that% the% inevitable% result% of% its%
exercise%is%to%create%an%impression%that%a%labor%dispute%with%which%
they% have% no% connection% or% interest% exists% between% them% and% the%
picketing%union%or%constitute%an%invasion%of%their%rights.(
Thus,(an(innocent(bystander,(who(seeks(to(enjoin(a(labor(strike,(must(
satisfy(the(court(that(aside(from(the(grounds(specified(in(Rule(58(of(the(
Rules( of( Court,( it( is( entirely( different( from,( without( any( connection(
whatsoever(to,(either(party(to(the(dispute(and,(therefore,(its(interests(are(
totally(foreign(to(the(context(thereof.(((
In( the( case( at( bar,( petitioner( cannot% be% said% not% to% have% such%
connection%to%the%dispute.$$
As( correctly( observed( by( the( appellate( court:( we( find( that( the(
negotiation,( contract( of( sale,( and( the( post( transaction( between(
Philtread,( as( vendor,( and( Siam( Tyre,( as( vendee,( reveals( a( legal( relation(
between(them(which,(in(the(interest(of(petitioner,(we(cannot(ignore.((To(
be( sure,( the( transaction( between( Philtread( and( Siam( Tyre,( was( not( a(
simple( sale( whereby( Philtread( ceased( to( have( any( proprietary( rights(
over(its(sold(assets.((On(the(contrary,(Philtread(remains(as(20%(owner(of(
private( respondent( and( 60%( owner( of( Sucat( Land( Corporation( which(
was( likewise( incorporated( in( accordance( with( the( terms( of( the(
Memorandum( of( Agreement( with( Siam( Tyre,( and( which( now( owns( the(

land( were( subject( plant( is( located.( This,( together( with( the( fact( that(
private( respondent( uses( the( same( plant( or( factory;( similar( or(
substantially( the( same( working( conditions;( same( machinery,( tools,( and(
equipment;(and(manufacture(the(same(products(as(Philtread,(lead(us(to(
safely(conclude(that(private(respondents(personality(is(so(closely(linked(
to(Philtread(as(to(bar(its(entitlement(to(an(injunctive(writ.(((
(