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DECISION
ABAD , J : p
This case is about a) the consequences of an illegally staged strike upon the
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employment status of the union o cers and its ordinary members and b) the right of
reinstated union members to go back to work pending the company's appeal from the
order reinstating them.
The Facts and the Case
C. Alcantara & Sons, Inc., (the Company) is a domestic corporation engaged in
the manufacture and processing of plywood. Nagkahiusang Mamumuo sa Alsons-SPFL
(the Union) is the exclusive bargaining agent of the Company's rank and le employees.
The other parties to these cases are the Union officers 1 and their striking members. 2
The Company and the Union entered into a Collective Bargaining Agreement
(CBA) that bound them to hold no strike and no lockout in the course of its life. At some
point the parties began negotiating the economic provisions of their CBA but this
ended in a deadlock, prompting the Union to le a notice of strike. After efforts at
conciliation by the Department of Labor and Employment (DOLE) failed, the Union
conducted a strike vote that resulted in an overwhelming majority of its members
favoring it. The Union reported the strike vote to the DOLE and, after the observance of
the mandatory cooling-off period, went on strike.
During the strike, the Company led a petition for the issuance of a writ of
preliminary injunction with prayer for the issuance of a temporary restraining order
(TRO) Ex Parte 3 with the National Labor Relations Commission (NLRC) to enjoin the
strikers from intimidating, threatening, molesting, and impeding by barricade the entry
of non-striking employees at the Company's premises. The NLRC rst issued a 20-day
TRO and, after hearing, a writ of preliminary injunction, enjoining the Union and its
o cers and members from performing the acts complained of. But several attempts
to implement the writ failed. Only the intervention of law enforcement units made such
implementation possible. Meantime, the Union led a petition 4 with the Court of
Appeals (CA), questioning the preliminary injunction order. On February 8, 1999 the
latter court dismissed the petition. The Union did not appeal from such dismissal. IScaAE
The Company, on the other hand, led a petition with the Regional Arbitration
Board to declare the Union's strike illegal, 5 citing its violation of the no strike, no
lockout, provision of their CBA. Subsequently, the Company amended its petition to
implead the named Union members who allegedly committed prohibited acts during
the strike. For their part, the Union, its o cers, and its affected members led against
the Company a counterclaim for unfair labor practices, illegal dismissal, and damages.
The Union also assailed as invalid the service of summons on the individual Union
members included in the amended petition.
On June 29, 1999 the Labor Arbiter rendered a decision, 6 declaring the Union's
strike illegal for violating the CBA's no strike, no lockout, provision. As a consequence,
the Labor Arbiter held that the Union o cers should be deemed to have forfeited their
employment with the Company and that they should pay actual damages of
P3,825,000.00 plus 10% interest and attorney's fees. With respect to the striking Union
members, nding no proof that they actually committed illegal acts during the strike,
the Labor Arbiter ordered their reinstatement without backwages. The Labor Arbiter
denied the Union's counterclaim for lack of merit.
On June 29, 1999 the terminated Union members promptly led a motion for
their immediate reinstatement but the Labor Arbiter did not act on the same. At any
rate, the Company did not reinstate them. Both parties appealed 7 the Labor Arbiter's
decision to the NLRC. The Company impugned the Labor Arbiter's decision insofar as it
ordered the reinstatement of the terminated Union members. The Union, on the other
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hand, questioned the declaration of illegality of the strike as well as the dismissal of its
officers and the order for them to pay damages.
On November 8, 1999 the NLRC rendered a decision, 8 a rming that of the Labor
Arbiter insofar as the latter declared the strike illegal, ordered the Union o cers
terminated, and directed them to pay damages to the Company. The NLRC ruled,
however, that the Union members involved, who were identi ed in the proceedings held
in the case, should also be terminated for having committed prohibited and illegal acts.
The Union led a petition for certiorari 9 with the CA, questioning the NLRC
decision. Finding merit in the petition, the CA rendered a decision on March 20, 2002, 1 0
annulling the NLRC decision and reinstating that of the Labor Arbiter. The Company and
the Union with its o cers and members led separate petitions for review of the CA
decision in G.R. 155109 and 155135, respectively. TaISDA
During the pendency of these cases, the affected Union members led with the
Labor Arbiter a motion for reinstatement pending appeal by the parties and the
computation of their backwages based on the CA decision. After hearing, the Labor
Arbiter issued a resolution dated November 21, 2002, 1 1 holding that due to the delay in
the resolution of the dispute and the impracticability of reinstatement owing to the fact
that the relations between the terminated Union members and the Company had been
severely strained by the prolonged litigation, payment of separation pay to such Union
members was in order. The Labor Arbiter thus approved the computation and payment
of their separation pay and denied all their other claims.
Both parties appealed the Labor Arbiter's resolution 1 2 to the NLRC. Initially, in its
resolution dated April 30, 2003, 1 3 the NLRC declared the Labor Arbiter's resolution of
November 21, 2002 void for lack of factual and legal basis but ordered the Company to
pay the affected employees' accrued wages and 13th month pay considering the
Company's refusal to reinstate them pending appeal. On motion for reconsideration by
both parties, however, the NLRC issued a resolution on August 29, 2003, 1 4 modifying
its earlier resolution by deleting the grant of accrued wages and 13th month pay to the
subject employees, thus denying their motion for computation.
Upon the Union's petition for certiorari 1 5 with the CA, questioning the NLRC's
denial of the terminated Union members' claim for separation pay, accrued wages, and
other bene ts, the CA rendered a decision on February 24, 2005, 1 6 dismissing the
petition. The CA ruled that the reinstatement pending appeal provided under Article 223
of the Labor Code contemplated illegal dismissal or termination cases and not cases
under Article 263. Thus, the CA ruled that the resolution ordering the reinstatement of
the terminated Union members and the payment of their wages and other bene ts had
no basis. Aggrieved, the Union sought intervention by this Court.
The Issues Presented
The issues presented in these cases are:
1. Whether or not the NLRC properly acquired jurisdiction over the persons of
the individual Union members impleaded in the case;
2. Whether or not the Union staged an illegal strike;
3. Assuming the strike to be illegal, whether or not the impleaded Union
members committed illegal acts during the strike, justifying their termination from
employment;
4. Whether or not the terminated Union members are entitled to the payment
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of backwages on account of the Company's refusal to reinstate them, pending appeal
by the parties, from the Labor Arbiter's decision of June 29, 1999; and
5. Whether or not the terminated Union members are entitled to accrued
backwages and separation pay. IcSEAH
The Court nds no compelling reason to depart from the ndings of the Labor
Arbiter, the NLRC, and the CA regarding the illegality of the strike. Social justice is not
one-sided. It cannot be used as a badge for not complying with a lawful agreement.
Three . Since the Union's strike has been declared illegal, the Union o cers can,
in accordance with law be terminated from employment for their actions. This includes
the shop stewards. They cannot be shielded from the coverage of Article 264 of the
Labor Code since the Union appointed them as such and placed them in positions of
leadership and power over the men in their respective work units. DAcaIE
As regards the rank and le Union members, Article 264 of the Labor Code
provides that termination from employment is not warranted by the mere fact that a
union member has taken part in an illegal strike. It must be shown that such a union
member, clearly identified, performed an illegal act or acts during the strike. 2 0
Here, although the Labor Arbiter found no proof that the dismissed rank and le
Union members committed illegal acts, the NLRC found following the injunction hearing
in NLRC IC M-000126-98 that the Union members concerned committed such acts, for
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which they had in fact been criminally charged before various courts and the
prosecutors' o ce in Davao City. Since the CA held that the existence of criminal
complaints against the Union members did not warrant their dismissal, it becomes
necessary for the Court to go into the records to settle the issue.
The striking Union members allegedly committed the following prohibited acts:
a. They threatened, coerced, and intimidated non-striking employees,
officers, suppliers and customers;
b. They obstructed the free ingress to and egress from the company
premises; and
c. They resisted and de ed the implementation of the writ of
preliminary injunction issued against the strikers.
Cornelio Caguiat, Ruben Tungapalan, and Eufracio Rabusa depicted the above
prohibited acts in their a davits and testimonies. The Sheriff of the NLRC said in his
Report 2 1 that, in the course of his implementation of the writ of injunction, he observed
that the striking employees blocked the exit lane of the Alson drive with their tent.
Tungapalan, a non-striking employee, identified the Union members who threatened and
coerced him. Indeed, he led criminal actions against them. Lastly, the photos taken of
the strike show the strikers, properly identi ed, committing the acts complained of.
These constitute substantial evidence in support of the termination of the subject
Union members.
The mere fact that the criminal complaints against the terminated Union
members were subsequently dismissed for one reason or another does not extinguish
their liability under the Labor Code. Nor does such dismissal bar the admission of the
a davits, documents, and photos presented to establish their identity and guilt during
the hearing of the petition to declare the strike illegal. The technical grounds that the
Union interposed for denying admission of the photos are also not binding on the
NLRC. 2 2
Four . The terminated Union members contend that, since the Company refused
to reinstate them after the Labor Arbiter rendered a decision in their favor, the Company
should be ordered to pay them their wages during the pendency of the appeals from
the Labor Arbiter's decision. acHITE
It will be recalled that after the Labor Arbiter rendered his decision on June 29,
1999, which decision ordered the reinstatement of the terminated Union members, the
latter promptly led a motion for their reinstatement pending appeal. But the Labor
Arbiter did not for some reason act on the motion. As it happened, after about four
months or on November 8, 1999, the NLRC reversed the Labor Arbiter's reinstatement
order. It cannot be said, therefore, that the Company had resisted a standing order of
reinstatement directed at it at this point.
Of course, on March 20, 2002 the CA restored the Labor Arbiter's reinstatement
order. And this prompted the affected Union members to again le with the Labor
Arbiter a motion for their reinstatement pending appeal. But, acting on the motion, the
Labor Arbiter resolved at this point that reinstatement was no longer practicable
because of the severely strained relation between the company and the terminated
Union members. In place of reinstatement, the Labor Arbiter ordered the Company to
pay them their separation pays.
Both parties appealed the Labor Arbiter's above ruling 23 to the NLRC. But, as it
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turned out the NLRC did not also favor reinstatement. It instead ordered the Company
to pay the terminated Union members their accrued wages and 13th month pay
considering its refusal to reinstate them pending appeal. On motion for
reconsideration, however, the NLRC reconsidered and deleted altogether the grant of
accrued wages and 13th month pay. The Union appealed the NLRC ruling to the CA on
behalf of its terminated members but the CA denied their appeal.
The CA denied reinstatement for the reason that the reinstatement pending
appeal provided under Article 223 of the Labor Code contemplated illegal dismissal or
termination cases and not cases under Article 264. But this perceived distinction does
not find support in the provisions of the Labor Code.
The grounds for termination under Article 264 are based on prohibited acts that
employees could commit during a strike. On the other hand, the grounds for
termination under Articles 282 to 284 are based on the employee's conduct in
connection with his assigned work. Still, Article 217, which de nes the powers of Labor
Arbiters, vests in the latter jurisdiction over all termination cases, whatever be the
grounds given for the termination of employment. Consequently, Article 223, which
provides that the decision of the Labor Arbiter reinstating a dismissed employee shall
immediately be executory pending appeal, cannot but apply to all terminations
irrespective of the grounds on which they are based.
Here, although the Labor Arbiter failed to act on the terminated Union members'
motion for reinstatement pending appeal, the Company had the duty under Article 223
to immediately reinstate the affected employees even if it intended to appeal from the
decision ordaining such reinstatement. The Company's failure to do so makes it liable
for accrued backwages until the eventual reversal of the order of reinstatement by the
NLRC on November 8, 1999, 2 4 a period of four months and nine days. cACTaI
Five . While it is true that generally the grant of separation pay is not available to
employees who are validly dismissed, there are, in furtherance of the law's policy of
compassionate justice, certain circumstances that warrant the grant of some relief in
favor of the terminated Union members based on equity.
Bitter labor disputes, especially strikes, always generate a throng of odium and
abhorrence that sometimes result in unpleasant, although unwanted, consequences. 2 5
Considering this, the striking employees' breach of certain restrictions imposed on their
concerted actions at their employer's doorsteps cannot be regarded as so inherently
wicked that the employer can totally disregard their long years of service prior to such
breach. 26 The records also fail to disclose any past infractions committed by the
dismissed Union members. Taking these circumstances in consideration, the Court
regards the award of nancial assistance to these Union members in the form of one-
half month salary for every year of service to the company up to the date of their
termination as equitable and reasonable.
WHEREFORE , the Court DENIES the petition of the Nagkahiusang Mamumuo sa
Alsons-SPFL and its o cers and members in G.R. 155135 for lack of merit, and
REVERSES and SETS ASIDE the decision of the Court of Appeals in CA-G.R. SP 59604
dated March 20, 2002. The Court, on the other hand, GRANTS the petition of C.
Alcantara & Sons, Inc. in G.R. 155109 and REINSTATES the decision of the National
Labor Relations Commission in NLRC CA M-004996-99 dated November 8, 1999. TAIDHa
Footnotes
1.The officers of the Union are the following: Felixberto Irag, Joshua Barredo, Edilberto
Demetria, Romulo Lungay, Bonerme Maturan, Eduardo Campuso, Gilberto Gabronino,
Cirilo Mino, Roberto Abonado, Fructoso Cabahog, Alfredo Tropico, Hector Estuita,
Eduardo Capuyan, Alejandro Harder, Jaime Montederamos, Reynaldo Limpajan, Ernesto
Cuario, Edgar Monday, Herminio Robillo, Matroil delos Santos, Raul Cantiga, Rudy
Anadon, Bonifacio Salvador, Florente Seno, Warlito Monte, Pedro Esquierdo, Danilo
Mejos, Bartolome Castillanes, Saturnino Cagas, Eduardo Larena, Ermelando Basadre,
Elpidio Libranza, Teddy Suelo, Tranquilino Orallo, Manolito Sabellano, Primitivo Garcia,
Jose Amoylin, Carlos Baldos, Carmelito Tobias and Juanito Aldepolla.
2.These are Ludivicio Abad, Ricardo Alto, Feliciano Amper, Roberto Andrade, Julio Anino, Pedro
Aquino, Romeo Araneta, Constancio Arnaiz, Justino Ascano, Ernesto Baino, Jesus
Beritan, Diosdado Bongabong, Carilito Cal, Rolando Capuyan, Aurelio Carin, Angelito
Castañeda, Leonaro Casurra, Filemon Cesar, Romeo Comprado, Ramon Constantino,
Roy Constantino, Samuel dela Llana, Rosaldo Dagondon, Bonifacio Dinagudos, Jose
Eboran, Francisco Empuerto, Nestor Endaya, Ernesto Estilo, Vicente Fabroa, Ramon
Fernando, Samson Fulgueras, Sulpecio Gagni, Fervie Galvez, Eduardo Genelsa, Tito
Guades, Armando Gucila, Ernesto Hotoy, Wencislao Inghug, Epifanio Jarabay, Alexander
Judilla, Alfredo Lesula, Benito Magpusao, Eddie Mansanades, Arguilao Mantica, Silverio
Maranian, Ricardo Maturan, Antonio Melargo, Arsenio Melicor, Lauro Montenegro, Leo
Mora, Ronaldo Naboya, Mario Namoc, Gerwino Natividad, Juanito Nisnisan, Primo
Oplimo, Edgardo Ordiz, Patrocino Ortega, Mario Patan, Jesus Patoc, Manuel Piape,
Alberto Pielago, Nicasio Plaza, Fausto Quibod, Procopio Ramos, Rosendo Sajol, Patricio
Solomon, Mario Salvaleon, Bonifacio Sigue, Jaime Sucuahi, Alex Tauto-an, Claudio Tirol,
Jose Tolero, Alfredo Toralba, Eusebio Tumulak, Hermes Villacarlos, Saturnino Yagon
and Edilberto Yambao.
3.Docketed as NLRC IC M-000126-98.
26.Rollo (G.R. 155109), p. 1011. Some of them were hired as early as 1972.