Malayang Samahan NG Mga Manggagawa Sa M. Greenfield v. Ramos
Malayang Samahan NG Mga Manggagawa Sa M. Greenfield v. Ramos
Malayang Samahan NG Mga Manggagawa Sa M. Greenfield v. Ramos
•THIRD DMSION.
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436 SUPREME COURT REPORTS ANNOTATED
Malayang Samahan ng mga Manggagawa
sa M Greenfield vs. Ramos
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Commissioner Veloso inhibited himself from the case because the counsel
for the petitioners was his former classmate in law school. The First
Division was thus left with only one commissioner. Since the law requires
the concurrence of two commissioners to arrive at a judgment or resolution,
the Commission was constrained to temporarily designate a commissioner
from another division to complete the First Division. There is nothing
irregular at all in such a temporary designation for the law empowers the
Chairman to make temporary assignments whenever the required
concurrence is not met. The law does not say that a commissioner from the
first division cannot be temporarily assigned to the second or third division
to fill the gap or vice versa. The territorial divisions do not confer exclusive
jurisdiction to each division and are merely designed for administrative
efficiency.
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Same; Same; Same; Same; Even assuming that a federation had valid
grounds to expel union officers, due process requires that these union
officers be accorded a separate hearing by the company.- While
respondent company may validly dismiss the employees expelled by the
union for disloyalty under the union security clause of the collective
bargaining agreement upon the recommendation by the union, this dismissal
should not be done hastily and summarily thereby eroding the employees'
right to due process, self-organization and security of tenure. The
enforcement of union security clauses is authorized by law provided such
enforcement is not characteriz.ed by arbitrariness, and always with due
process. Even on the assumption that the federation had valid grounds to
expel the union officers, due process requires that these union officers be
accorded a separate hearing by respondent company.
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dispute when the company dismisses the union officers from work without
the benefi.t of a separate notice and hearing; Notwithstanding the fact that
the dismissal was at the instance of a labor federation which undertook to
hold the companyfree from any liability resulting from such a dismissal, the
company may still be held liable if it was remiss in its duty to accord the
would-be dismissed emplayees their right to be heard on the matter. - In its
decision, public respondent also declared that if complainants (herein
petitioners) have any recourse in law, their right of action is against the
federation and not against the company or its officers, relying on the
findings of the Labor Secretary that the issue of expulsion of petitioner
union officers by the federation is a purely intra-union matter. Again, such a
contention is untenable. While it is true that the issue of expulsion of the
local union officers is originally between the local union and the federation,
hence, intra-union in character, the issue was later on converted into a
termination dispute when the company dismissed the petitioners from work
without the benefit of a separate notice and hearing. As a matter of fact, the
records reveal that the termination was effective on the same day that the
termination notice was served on the petitioners, xxx Thus, notwithstanding
the fact that the dismissal was at the instance of the federation and that it
undertook to hold the company free from any liability resulting from such a
dismissal, the company may still be held liable if it was remiss in its duty to
accord the would-be dismissed employees their right to be heard on the
matter.
Same; Same; Same; Same; Jurisdiction; The issue of whether or not the
federation had reasonable grounds to expel the petitioner union officers is
properly within the original and exclusive jurisdiction of the Bureau of
Labor Relations, being an intra-union conflict.-Although the issue of
whether or not the federation had reasonable grounds to expel the petitioner
union officers is properly within the original and exclusive jurisdiction of the
Bureau of Labor Relations, being an intra-union conflict, this Court deems it
justifiable that such issue be nonetheless ruled upon, as the Labor Arbiter
did, for to remand the same to the Bureau of Labor Relations would be to
intolerably delay the case.
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resulting to injuries to both sides, the union and management." The evidence
on record show that the violence cannot be attributed to the striking
employees alone for the company itself employed hired men to pacify the
strikers. With violence committed on both sides, the management and the
employees, such violence cannot be a ground for declaring the strike as
illegal.
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NLRC and Isetann Department Store (G.R. No. 117040, January 27, 2000),
the Court ruled that an employee who is dismissed, whether or not for just
or authorized cause but without prior notice of his termination, is entitled to
full backwages from the time he was terminated until the decision in his case
becomes final, when the dismissal was for cause; and in case the dismissal
was without just or valid cause, the backwages shall be computed from the
time of his dismissal until his actual reinstatement. In the case at bar, where
the requirement of notice and hearing was not complied with, the aforecited
doctrine laid down in the Serrano case applies.
PURISIMA, J.:
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- and-
xxx xxx
'Rollo, p. 29.
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question, in any manner, his dismissal; provided, further that the matter of
the employee's dismissal under this Article may be submitted as a grievance
under Article XIII and, provided, finally, that no such written
recommendation shall be made upon the COMPANY nor shall COMPANY
be compelled to act upon any such recommendation within the period of
sixty (60) days prior to the expiry date of this Agreement conformably to
law. "
Article IX
On September 12, 1986, a local union election was held under the
auspices of the ULGWP wherein the herein petitioner, Beda
Magdalena Villanueva, and the other union officers were proclaimed
as winners. Minutes of the said election were duly filed with the
Bureau of Labor Relations on September 29, 1986.
On March 21, 1987, a Petition for Impeachment was filed with
the national federation ULGWP by the defeated candidates in the
aforementioned election.
On June 16, 1987, the federation conducted an audit of the local
union funds. The investigation did not yield any unfavorable result
and the local union officers were cleared of the charges of anomaly
in the custody, handling and disposition of the union funds.
The 14 defeated candidates filed a Petition for
Impeachment/Expulsion of the local union officers with the DOLE
NCR on November 5, 1987, docketed as NCR-OD-M-11-780-87.
However, the same was dismissed on March 2, 1988, by Med
Arbiter Renato Parungo for failure to substantiate the charges and to
present evidence in support of the allegations.
On April 17, 1988, the local union held a general membership
meeting at the Caruncho Complex in Pasig. Several union members
failed to attend the meeting, prompting the
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On June 27, 1988, the local union wrote respondent company a letter
requesting it to deduct the union fmes from the wages/salaries of
those union members who failed to attend the general membership
meeting. A portion of the said letter stated:
3 Rollo, p. 34.
4 Rollo, p. 35.
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s Ibid., p. 40.
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deduct from the salaries of the 356 union members the P50.00 fine."
6 Rollo, p. 47.
7 Ibid, p. 48.
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''Effective today, November 21, 1988, you are hereby expelled from
UNITED LUMBER AND GENERAL WORKERS OF THE PIIlLIPPINES
(ULGWP) for committing acts of disloyalty and/or acts inimical to the
interest and violative to the Constitution and bylaws of your federation.
You failed and/or refused to offer an explanation inspite of the time
granted to you.
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Bargaining Agreement."
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cordingly, we hereby serve notice upon you that we are dismissing you from
your employment with M. Greenfield, Inc., pursuant to Sections 1 and 4,
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Article II of the CBA effective immediately."
On that same day, the expelled union officers assigned in the first
shift were physically or bodily brought out of the company premises
by the company's security guards. Likewise, those assigned to the
second shift were not allowed to report for work. This provoked
some of the members of the local union to demonstrate their protest
for the dismissal of the said union officers. Some union members
left their work posts and walked out of the company premises.
On the other hand, the Federation, having achieved its objective,
withdrew the Notice of Strike filed with the NCMB.
On March 8, 1989, the petitioners filed a Notice of Strike with
the NCMB, DOLE, Manila, docketed as Case No. NCMB-NCR-NS-
03-216-89, alleging the following grounds for the strike:
(a) Discrimination
(b) Interference in union activities
(c) Mass dismissal of union officers and shop stewards
(d) Threats, coercion and intimidation
(e) Union busting
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"At this point in time, it is clear that the dispute at M. Greenfield is purely
an i ntra-union matter. No mass lay-off is evident as the terminations have
been limited to those allegedly leading the secessionist group leaving
MSMG-ULGWP to form a union under the KMU. xxx
xxx xxx xxx
SO ORDERED. "
11 Rollo, p. 937.
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By:
12 Rollo, p. 837.
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of the company.
This ruling of the NLRC is erroneous. Although this Court has
ruled that union security clauses embodied in the collective
bargaining agreement may be validly enforced and that dismissals
pursuant thereto may likewise be valid, this does not erode the
fundamental requirement of due process. The reason behind the
enforcement of union security clauses
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14 Tanduay Distillery Labor Union vs. NLRC, 149 SCRA 470 citing Victoria's
Milling Co., Inc. vs. Victorias-Manapla Workers' Organization, 9 SCRA 154.
15 G.R. No. 91086, 8 May 1990, 185 SCRA 177.
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Cotton Mills, Inc., the Court held the company liable for the
payment of backwages for having acted in bad faith in effecting the
dismissal of the employees.
"x xx Bad faith on the part of the respondent company may be gleaned from
the fact that the petitioner workers were dismissed hastily and summarily. At
best, it was guilty of a tortious act, for which it must assume solidary
liability, since it apparently chose to sununarily dismiss the workers at the
union's instance secure in the union's contractual undertaking that the union
would hold it 'free from any liability' arising from such dismissal."
Thus, notwithstanding the fact that the dismissal was at the instance
of the federation and that it undertook to hold the company free from
any liability resulting from such a dismissal, the company may still
be held liable if it was remiss in its duty to accord the would-be
dismissed employees their right to be heard on the matter.
Anent petitioners contention that the federation was not a
principal party to the collective bargaining agreement between the
company and the union, suffice it to say that the matter was already
ruled upon in the Interpleader case filed by respondent company.
Med-Arbiter Anastacio Bactin thus ruled:
After a careful examination of the facts and evidences presented by the
parties, this Officer hereby renders its decision as follows:
1. ) It appears on record that in the Collective Bargaining Agreement
(CBA) which took effect on July 1, 1986, the contracting
11 90 SCRA 391.
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but it is equally well-settled that the Court will not uphold erroneous
conclusions of the NLRC as when the Court finds insufficient or
insubstantial evidence on record to support those factual findings.
The same holds true when it is perceived that far too much is
concluded, inferred or deduced from the bare or incomplete facts
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appearing of record.
In its decision, the Labor Arbiter declared that the act of
disaffiliation and declaration of autonomy by the local union was
part of its "plan to take over the respondent federation." This is
purely conjecture and speculation on the part of public respondent,
totally unsupported by the evidence. A local union has the right to
disaffiliate from its mother
union or declare its autonomy. A local union, being a separate
and voluntary association, is free to serve the interests of all its
members including the freedom to disaffiliate or declare its
autonomy from the federation to which it belongs when
circumstances warrant, in accordance with the constitutional
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With regard to the issue of the legality or illegality of the strike, the
Labor Arbiter held that the strike was illegal for the following
reasons: (1) it was based on an intra-union dispute which cannot
properly be the subject of a strike, the right to strike being limited to
cases of bargaining deadlocks and unfair labor practice (2) it was
made in violation of the "no strike, no lock-out" clause in the CBA,
and (3) it was attended 'with violence, force and intimidation upon
the persons of the company officials, other employees reporting for
work and third persons having legitimate business with the
company, resulting to serious physical injuries to several employees
and damage to company property.
On the submission that the strike was illegal for being grounded
on a non-strikeable issue, that is, the intra-union conflict between the
federation and the local union, it bears reiterating that when
respondent company dismissed the union officers, the issue was
transformed into a termination dispute and brought respondent
company into the picture. Petitioners believed in good faith that in
dismissing them upon request by the federation, respondent
company was guilty of unfair labor practice in that it violated the
petitioner's right to self-organization. The strike was staged to
protest respondent company's act of dismissing the union officers.
Even if the allegations of unfair labor practice are subsequently
found out to be untrue, the presumption of legality of the strike
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prevails.
Another reason why the Labor Arbiter declared the strike illegal
is due to the existence of a no strike, no lockout provision in the
CBA. Again, such a ruling is erroneous. A no strike, no lock out
provision can only be invoked when the strike is economic in nature,
i.e. to force wage or other concessions from the employer which he
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ganization (FFW) vs. PIC Cmp., 1 12 SCRA 440; Consolidated Labor Association
of the Philippines vs. Marsman and Co., Inc., 1 1 SCRA 589; Master Iron Labor Union
vs. NLRC, 219 SCRA 47; Phil. Metal Foundries, Inc. vs. CIR, 90 SCRA 135.
21 Decision ofthe Labor Arbiter, Rollo, p. 203.
28 Philippine Advertising Counselors, Inc. vs. National Labor Relations
Commission, 263 SCRA 395; Balayan Colleges vs. National Labor Relations
Commission, 255 SCRA 1.
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employee simply does not want to work any-more. And the burden
of proof to show that there was unjustified refusal to go back to
work rests on the employer.
In the present case, respondents failed to prove that there was a
clear intention on the part of the striking employees to sever their
employer-employee relationship. Although admittedly the company
sent three return to work notices to them, it has not been
substantially proven that these notices were actually sent and
received by the employees. As a matter of fact, some employees
deny that they ever received such notices. Others alleged that they
were refused entry to the company premises by the security guards
and were advised to secure a clearance from ULGWP and to sign a
waiver, Some employees who responded to the notice were
allegedly told to wait for further notice from respondent company as
there was lack of work.
Furthermore, this Court has ruled that an employee who took
steps to protest his lay-off cannot be said to have abandoned his
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'29 Nueva Ecija I Electric Cooperative, Inc. vs. Minister of Labor, 184 SCRA 25, 30.
30 Bontia vs. National Labor Relations Commission, 255 SCRA 167; Batangas
Laguna Tayabas Bus Company vs. NLRC, 212 SCRA 792; Jackson Building
Condominium Corporation vs. NLRC, 246 SCRA 329.
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clauses are valid and legal subject only to the requirement of due
process, that is, notice and hearing prior to dismissal. Thus, the
dismissal of an employee by the company pursuant to a labor
union's demand in accordance with a union security agreement does
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31 Tanduay Distillery Labor Union vs. NLRC, 149 SCRA 470; Seno vs. Mendoza,
21 SCRA 1124.
n 170 SCRA 69 (1989).
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