Title
Liberal Labor Union vs. Philippine Can Co.
Case
G.R. No. L-4834
Decision Date
Mar 28, 1952
Union's strike declared illegal for bypassing CBA grievance steps, failing to escalate dispute to CIR before action. SC upheld CIR ruling.
A

Case Digest (G.R. No. 42288)

Facts:

  • Background of the Dispute
    • A labor dispute arose between the Liberal Labor Union (petitioner) and the Philippine Can Company (respondent).
    • A case concerning this dispute was filed in the Court of Industrial Relations, designated as case No. 229-V.
  • Collective Bargaining Agreement
    • The parties entered into a Collective Bargaining Agreement on February 26, 1949.
    • The Agreement established a detailed grievance procedure to settle labor disputes, which involved:
      • Submission of any worker’s grievance to a grievance committee composed of six members (three representing the union and three representing the company).
      • If unresolved by the committee, the grievance was to be elevated to a conference between top officials of both the union and management.
      • Should the dispute still not be settled, the matter would then be submitted to the Court of Industrial Relations for adjudication.
  • Incidents Leading to the Strike
    • On the same day that the Collective Bargaining Agreement was executed, the respondent reduced the wages of seven unionized workers by P.50.
    • The petitioning union promptly protested the wage reduction:
      • Initially, the protest was directed to the assistant manager, who claimed no involvement.
      • The protest was then reiterated to the general manager, who promised a discussion by management.
      • When the union’s representatives inquired later, they were informed that the reduction could not be rectified as it did not appear in the payroll, and that management would deny the grievance if brought to court.
  • Failure in the Grievance Procedure
    • The grievance procedure expressly required that complaints be first presented to a grievance committee.
    • The union had designated its representatives, but the respondent failed to designate its own, thereby nullifying the committee’s proper formation.
  • The Strike and Subsequent Petition
    • Due to the respondent’s failure to comply with the agreed procedure, the union staged a strike on March 14, 1949.
    • The union then filed a petition seeking:
      • A declaration that the strike was legal and justified.
      • An order directing the respondent to restore the previous wage rates and refund the deducted amounts.
  • Court Proceedings and Developments
    • Initially, after several days of trial, Judge Jose S. Bautista, with concurrence from Judge Modesto Castillo, ruled that the strike was legal and justified, given the respondent’s failure in forming a proper grievance committee.
    • On a motion for reconsideration, the decision was reversed in a subsequent resolution dated March 15, 1951, authored by Presiding Judge Arsenio S. Roldan and concurred by Judges Juan L. Lanting and Vicente Jimenez Yanzon.
    • The revised decision declared the strike illegal and affirmed the respondent’s right not to continue employing those responsible for the strike.
    • The petition for review was ultimately filed challenging this reversal.

Issues:

  • Legality of the Strike
    • Whether the strike staged by the liberal labor union on March 14, 1949, was legal under the terms of the Collective Bargaining Agreement.
  • Compliance with the Agreed Grievance Procedure
    • Whether the union’s failure to submit its grievance first to a grievance committee and then to the conference of top officials before resorting to a strike constituted a violation of the Agreement.
    • Whether the respondent’s failure to nominate its representatives to the grievance committee excused the union from following the mandatory steps outlined.
  • Additional Misconduct During the Strike
    • Whether the acts of coercion, force, intimidation, physical violence, sabotage, and the use of obscene language by union officials and members further compounded the illegality of the strike.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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