Title
Abaria vs. National Labor Relations Commission
Case
G.R. No. 154113
Decision Date
Dec 7, 2011
A local union's illegal strike led to dismissals; court ruled officers' dismissals valid, members entitled to separation pay, no unfair labor practice by hospital.
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Case Digest (G.R. No. 154113)

Facts:

Background and Parties Involved:
Metro Cebu Community Hospital, Inc. (MCCHI), later known as Visayas Community Medical Center (VCMC), is a non-stock, non-profit corporation operating a tertiary medical institution in Cebu City. The National Federation of Labor (NFL) was the exclusive bargaining representative of MCCHI's rank-and-file employees. Disputes arose when a local union, Nagkahiusang Mamumuo sa Metro Cebu Community Hospital (NAMA-MCCH-NFL), attempted to negotiate a new Collective Bargaining Agreement (CBA) without the endorsement of the NFL.

Events Leading to the Dispute:
In December 1995, Perla Nava, president of NAMA-MCCH-NFL, submitted a CBA proposal to MCCHI, which was rejected due to lack of NFL endorsement. A conflict emerged between the local union and the NFL, with MCCHI refusing to negotiate directly with NAMA-MCCH-NFL. In February 1996, NFL suspended several union members for disloyalty, leading to protests and picketing by the local union. MCCHI declared the strike illegal and terminated union leaders and members who participated in the strike.

Legal Proceedings:
The Department of Labor and Employment (DOLE) declared NAMA-MCCH-NFL’s strike illegal due to its lack of legal personality as a registered labor organization. The National Labor Relations Commission (NLRC) upheld the dismissals, but the Court of Appeals modified the decision, awarding separation pay to some employees.

Issue:

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Ruling:

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Ratio:

  1. Substantial Compliance with Forum Shopping Rule: The Court held that the certification against forum shopping signed by the majority of petitioners substantially complied with the rule, as the petitioners shared a common cause of action.
  2. Unfair Labor Practice: A local union that is not registered or has not validly disaffiliated from its mother union cannot demand collective bargaining. MCCHI’s refusal to negotiate with NAMA-MCCH-NFL was justified.
  3. Illegal Strike Participation: Union officers who knowingly participated in an illegal strike can be dismissed, while ordinary members cannot be dismissed unless they committed illegal acts during the strike.
  4. Separation Pay in Lieu of Reinstatement: Separation pay is appropriate in cases involving illegal strikes when reinstatement is no longer feasible due to strained relations or the passage of time.

Disposition

The Court denied the petition in G.R. No. 187861 and partially granted the petitions in G.R. Nos. 154113, 187778, and 196156. Separation pay equivalent to one month’s salary for every year of service was awarded to union members, and attorney’s fees of P50,000 were granted. The case was remanded to the Executive Labor Arbiter for recomputation of separation pay.


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