Title
Supreme Court
Labor Congress of the Philippines vs. National Labor Relations Commission
Case
G.R. No. 123938
Decision Date
May 21, 1998
Petitioners, piece-rate employees, filed labor complaints against Empire Food Products for unfair labor practices, illegal dismissal, and underpayment. The Supreme Court ruled in their favor, declaring illegal dismissal, awarding back wages, separation pay, and statutory benefits, and remanding for exact computation.

Case Digest (G.R. No. 123938)
Expanded Legal Reasoning Model

Facts:

  • Parties and Background
    • Petitioners: Ninety-nine (99) rank-and-file employees of Empire Food Products represented by the Labor Congress of the Philippines (LCP).
    • Respondents: Empire Food Products (employer), Gonzalo Kehyeng and Evelyn Kehyeng (management), National Labor Relations Commission (NLRC).
    • Initial claims:
      • Money claims and violations of labor standards (NLRC RAB-III-10-1817-90).
      • Direct certification petition of LCP as bargaining representative (Case No. R0300-9010-RU-005).
  • Procedural History
    • October 23, 1990 – Memorandum of Agreement (MOA) signed:
      • LCP recognized as sole and exclusive bargaining agent; provisional withdrawal of NLRC case; wage adjustment; union-dues check-off; agreement to negotiate CBA.
      • MOA approved by Mediator-Arbiter on October 24, 1990.
    • January 23, 1991 – Petitioners filed complaint for unfair labor practice, illegal lockout/dismissal, union busting, underpayment of wages, and damages (NLRC RAB-III-01-1964-91).
    • April 14, 1992 – Labor Arbiter’s Decision: dismissed private respondents from all charges except technical violation for failing to keep payroll records; directed reinstatement of complainants.
    • July 21, 1992 – NLRC Resolution: vacated Decision, remanded for further proceedings, noting overlooked testimonies and lack of dispositive portion.
    • July 27, 1994 – Labor Arbiter’s Second Decision: dismissed complaint for lack of proof of unfair labor practice, held petitioners abandoned their work (based on single-day absence), denied damages.
    • March 29, 1995 – NLRC Resolution: affirmed Labor Arbiter’s dismissal in toto; denied reconsideration on October 31, 1995.
    • December 1995 – Petitioners filed special civil action for certiorari under Rule 65 before the Supreme Court.
    • Office of the Solicitor General (OSG) intervened, supporting petitioners on the issue of abandonment and non-reinstatement.

Issues:

  • Did the NLRC gravely abuse its discretion by ignoring favorable evidence, applicable jurisprudence, and due process?
  • Were petitioners deprived of constitutional rights to self-organization, security of tenure, protection of labor, and just conditions of work?
  • Were petitioners illegally dismissed or constructively dismissed by being deemed to have abandoned their work?
  • Are petitioners entitled to reinstatement (or separation pay), back wages, statutory benefits, damages, and attorneys’ fees?

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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