Title
Asian Transmission Corp. vs. National Labor Relations Commission
Case
G.R. No. 88725
Decision Date
Nov 22, 1989
ATC workers defied a return-to-work order, staged a strike, and lost reinstatement rights; Supreme Court annulled NLRC's reinstatement order, ruling defiance forfeits employment claims.

Case Digest (G.R. No. 88725)
Expanded Legal Reasoning Model

Facts:

  • Parties and Proceedings
    • Asian Transmission Corporation (ATC) is the petitioner, while the respondents include the National Labor Relations Commission (NLRC), its Commissioners, and the Bisig ng Asian Transmission Labor Union (BATLU), among others.
    • The case is an offshoot of two earlier Supreme Court decisions (G.R. Nos. 75271-73 and 77567, both decided on June 27, 1988) that dealt with substantially the same controversy and parties.
  • Return-to-Work Order and Subsequent Developments
    • A return-to-work order was first issued by the Ministry of Labor and Employment on June 3, 1986 and was reiterated on June 13, 1986 and November 24, 1986.
    • The order was grounded on the principle that while the order did not bestow an absolute right, it imposed an obligation upon workers; compliance was necessary for job retention and for the resumption of company operations.
    • The order was intended to benefit those workers who complied by returning to work, irrespective of pending determinations on the legality of the strike.
  • Employee Conduct and Employer Response
    • Despite being notified of the directive, forty-four employees staged a strike and engaged in picketing, thereby defying the return-to-work order.
    • The employer (ATC) accepted the returning workers who complied with the directive but refused to readmit the striking employees.
    • The NLRC subsequently issued a resolution (January 13, 1987) ordering ATC to either accept or reinstate the defiant workers on its payroll immediately.
  • Judicial Developments and Further Orders
    • The Supreme Court, in its decisions and resolutions (including those on February 22, 1989), clarified that the return-to-work order benefits only those workers who complied with it.
    • The Court emphasized that the order imposes a duty rather than a discretionary right; noncompliance, such as the act of striking, results in forfeiture of the workers’ right to reinstatement and corresponding payment for work.
    • On remand, BATLU filed a motion for execution on behalf of the workers seeking readmission. The NLRC’s Third Division granted this motion on June 13, 1989, ordering the readmission of thirty-four workers (a reduction from the original forty-four).
  • Petitioner’s Contentions and Litigatory Motions
    • ATC petitioned for the annulment of the NLRC Resolution of June 13, 1989, contending that the readmission should not extend to workers who defied the order.
    • The petitioner also moved for a show-cause order against the respondents for allegedly subverting or violating the Supreme Court’s earlier decisions and resolutions.
    • The respondents’ interpretation focused on upholding mandatory compliance, while ATC argued that those who engaged in the strike had effectively abandoned their employment rights.

Issues:

  • Validity of the Return-to-Work Order
    • Whether a return-to-work order may be validly issued by the NLRC and the Ministry of Labor and Employment pending the final determination of the legality or illegality of the strike.
    • Whether such an order imposes a mandatory duty on workers rather than conferring a discretionary right.
  • Consequences of Noncompliance with the Order
    • Whether workers who defied the return-to-work order by engaging in a restrained strike and picketing consequently forfeited their right to reinstatement and payment for work not performed.
    • Whether the employer’s refusal to readmit these defiant employees is legally justified under the established principles enunciated by the earlier Supreme Court decisions.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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