144 Manila Mandarin EU V NLRC

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Manila Mandarin EU v. NLRC G.R. No.

L-76989
September 29, 1987 Gutierrez, Jr., J.
UNFAIR LABOR PRACTICE ACTS
SUMMARY:
Based on a remark made by Beloncio during a heated discussion to a waitress who happened to be the union steward,
MMEU expelled her from the union on the ground of acts inimical to interest of the union. Thus, pursuant to a union
security clause, MMEU sought her dismissal. The hotel placed her on forced leave. Beloncio then filed a complaint for
ULP and ID. LA found the union guilty of ULP. NLRC modified (aside from the liability, there was no mention of what
the modifications were). MMEU questioned NLRC’s jurisdiction, stating that the matter was purely an intra-union
dispute. SC affirmed the LA and NLRC, stating that the matter was not purely intra-union, since it involves the
interpretation of the CBA, as well as the issue of the legality of the dismissal. Where the dispute is not purely intraunion
but involves an interpretation of the CBA and WoN there was an illegal dismissal, the NLRC has jurisdiction.
FACTS:
 Melba Beloncio, an asst. head waitress at the hotel’s coffee shop, and who has been employed by the hotel since
1976, was expelled from the MMEU for acts allegedly inimical to the interests of the union. Based on a union
security clause1, MMEU demanded Beloncio’s dismissal, to which the hotel acceded by placing her under forced
leave. 2 days before the effectivity thereof, Beloncio filed a complaint for ULP and illegal dismissal against the
Hotel and the MMEU before the NLRC.
 LA: MMEU guilty of ULP when it demanded Beloncio’s separation. It was ordered to pay all the wages and
fringe benefits due to Beloncio from the time she was placed on forced leave until her actual reinstatement, 30k as
exemplary damages, and 10k as attys fees.
 NLRC: modified. MMEU to pay wages, benefits, plus 10% thereof as attys fees. Hotel ordered to reinstate
Beloncio and to pay whatever service charges may be due her, to be held in escrow.

ISSUES: WoN NLRC has jurisdiction.

PETITIONER’S ARGUMENT/S: NLRC has no jurisdiction. Present controversy involves intra-union conflicts.
Moreover, it should not be held liable for the payment of Beloncio’s salary, fringe benefits and 10% attys fees.

HELD:
1. Yes.
 No GAD in finding that the dispute is not purely intra-union but involves an interpretation of the CBA provision
and WoN there was illegal dismissal.
 Under the CBA, membership in the union may be lost through expulsion only if there is non-payment of dues or a
member organizes, joins or forms another labor organization. The charge of disloyalty against Beloncio arose
from her emotional remark to a waitress who happened to be a union steward, “Wala akong tiwala sa Union
ninyo”, which was made in the course of a heated discussion re: Beloncio’s efforts to improve the bus boy’s
attitude towards his work.
 As the LA and SolGen stated, if the only question is the legality of the expulsion, then undoubtedly, the issue is
cognizable by the BLR. But, since it extended to Beloncio’s dismissal or steps leading thereto, it would
necessarily subject the acts of the Hotel on the recommended dismissal to scrutiny, i.e. WoN the dismissal
violates the CBA, which would certainly be ULP. (See art. 250(b) for the specific ULP committed by the union).
Art. 217 also provides that NLRC has OEJ over ULP cases.

Other Issues:
 Re: reason for dismissal and lack thereof (only on leave): SC held that findings of fact made by quasi-judicial
agencies, when based on substantial evidence, should be given finality.

1
Section 2(b). “Members of the Union who cease to be such members and/or who fail to maintain their membership in good standing therein by reason of their
resignation from the Union, and/or by reason of their expulsion from the Union , in accordance with the Constitution and ByLaws of the Union, for nonpayment
of union dues and other assessment, for organizing, joining or forming another labor organization shall, upon written notice of such cessation of membership or
failure to maintain membership in the Union and upon written demand to the company by the Union, be dismissed from employment by the Company after complying
with the requisite due process requirement; xxx”
 Re: liability: Hotel would not have placed Beloncio on forced leave were it not for the union’s insistence to dismiss
her, with the union even filing for a notice of strike. Moreover, under the CBA, “the Union shall hold the Company
free and blameless from any and all liabilities that may arise" should the employee question the dismissal, as has
happened in the CAB.
 SC also stressed that while a closed- shop agreement is a valid form of union security, and is not a restriction of the
right of freedom of association, union security clauses are also governed by law and principles of justice, fair play,
and legality. Union security clauses cannot be used by union officials against an employer, much less their own
members, except with a high sense of responsibility, fairness, prudence, and judiciousness.
 A union member may not be expelled from her union, and consequently from her job, for personal or impetuous
reasons or for causes foreign to the closedshop agreement and in a manner characterized by arbitrariness and
whimsicality.
This is especially true in the case of Beloncio. Union membership does not entitle waiters, janitors, and other workers
to be sloppy in their work, inattentive to customers, and disrespectful to supervisors. The Union should have
disciplined its erring and troublesome members instead of causing so much hardship to a member who was only doing
her work for the best interests of the employer, all its employees, and the general public whom they serve.

Petition DISMISSED.

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