Facts:

The case involves Carmen Arrieta as the petitioner and the National Labor Relations Commission, Central Negros Electric Cooperative, Inc. (CENECO), and Christopher Rios as the respondents. Carmen Arrieta began her employment with CENECO on January 16, 1988, as the Executive Secretary to the President and the Board of Directors, with a monthly salary of P2,360.00. On April 16, 1988, she was appointed to the same position for an indefinite period, receiving a salary increase to P3,325.00. On August 28, 1989, while still serving as Executive Secretary, she was detailed to the Engineering Department as its Secretary. By April 19, 1991, her rank was upgraded to 9-1, and her salary increased to P4,947.00. However, on December 18, 1991, CENECO's Board of Directors passed Resolution No. 5446, abolishing all positions in the 1987 plantilla and adopting a new plantilla aimed at reorganizing the cooperative's operations. Under the new plantilla, the position of Executive Secreta...

Facts:

Employment and Initial Appointments

• Carmen Arrieta was hired by Central Negros Electric Cooperative, Inc. (CENECO) on January 16, 1988, as Executive Secretary to the President and the Board of Directors under the cooperative’s 1987 plantilla.
• Assigned a grade of 7-B with a basic monthly salary of P2,360.00.
• On April 16, 1988, she was reappointed for an indefinite period as Executive Secretary to the Office of the Board of Directors.
• Her grade was upgraded to Grade 9 and Rank 9-B with an increased basic salary of P3,325.00.

Reassignment and Subsequent Salary Adjustment

• While still maintaining the perquisites and status of Executive Secretary, she was detailed to the Engineering Department as its Secretary on August 28, 1989.
• On April 19, 1991, she was further upgraded to Rank 9-1 with a revised compensation package comprising:
• A basic salary of P3,685.00.
• Additional components such as CBA (P900.00), Longevity Pay (P250.00) and other allowances (P112.00), totaling a monthly rate of P4,947.00.

Organizational Reorganization and New Plantilla

• On December 18, 1991, CENECO’s Board of Directors enacted Resolution No. 5446, which:
• Abolished all positions under the 1987 plantilla.
• Adopted a new plantilla proposed by the cooperative’s Steering Committee for Reorganization.
• Under the new plantilla:
• The Office of the Board of Directors no longer had the position of Executive Secretary.
• Positions provided were a Secretary/Stenographer with Grade 7-9 and an Assistant Secretary with Grade 5-5.
• Only Senior Linemen were eligible to petition their former rank of 9-1.

Appointment Under the New Plantilla and Subsequent Protest

• Pursuant to the reorganization, petitioner was permanently appointed as Secretary in the Engineering Department effective December 1, 1991.
• Assigned a new grade of 6-5, while her monthly salary of P4,947.00 was maintained through a revised breakdown (Basic – P3,243.80; CBA, Longevity Pay, Holiday Pay, and a Salary Differential totaling P441.20).
• Petitioner refused her new grade assignment and signed the appointment under protest.

Claims and Allegations by the Petitioner

• On January 24, 1992, petitioner sent a letter to CENECO’s General Manager demanding her restoration to her former position as Executive Secretary with Grade 9-1 and the basic salary of P3,325.00.
• After her demands were rejected:
• She filed a complaint alleging constructive dismissal.
• Claimed that the reorganization resulted in a reduction of her basic salary (an alleged drop of P81.20) and a demotion from a position of dignity (Executive Secretary) to a allegedly menial role (Department Secretary).
• Petitioner argued that the change was intended as a ploy by management to remove her by altering her rank, grade, and salary, stressing a later resolution (No. 5619, Series of 1993) which upgraded similar positions in the cooperative.

Proceedings and Developments in Labor Tribunals

• The Labor Arbiter initially ruled in favor of petitioner:
• Finding private respondents guilty of constructive dismissal.
• Ordering her reinstatement to her former or substantially equivalent position with full restoration of rank, grade, and additional damages.
• On appeal, the National Labor Relations Commission reversed the Labor Arbiter’s decision, dismissing the complaint based on findings that no constructive discharge occurred.

Context and Nature of the Reorganization

• The reorganization was undertaken to streamline operations by:
• Analyzing the staffing pattern based on educational attainment, qualifications, aptitude, and competence.
• Abolishing positions deemed no longer necessary and reassigning employees accordingly.
• The reorganization affected all employees, making petitioner’s situation part of a comprehensive personnel restructuring rather than an isolated act against her.

Issue:

Whether the organizational changes implemented by CENECO, including the abolition of the Executive Secretary position and the consequent appointment of petitioner to a new role as Department Secretary, constitute constructive dismissal.

• Does the reorganization amount to a demotion in rank, grade, and salary that forces a de facto departure from employment?

• Whether petitioner’s claim of a reduction in her basic salary and her demotion are valid given the adjustments (including salary differentials) incorporated in the new plantilla.

• Whether the reorganization and the new appointment were part of a legitimate business reorganization under management prerogative or an attempt to single out and humiliate petitioner.

• Whether petitioner’s assertion of a vested right to the previous position of Executive Secretary survives the rational, organization-wide personnel changes enacted by CENECO.

Ruling:

• (Subscriber-Only)

Ratio:

• (Subscriber-Only)

Doctrine:

• (Subscriber-Only)