Facts:

• The case involves the Philippine Long Distance Telephone Company (PLDT) as the petitioner and Voluntary Arbitrator Alberto Montemayor, along with employees Ma. Emma J. Totesora, Miricar A. Marcos, and Maria Lourdes U. Macabenta as respondents.
• Totesora and Marcos, regular Traffic Operators, were dismissed for allegedly making unauthorized long-distance calls from Davao to Manila.
• Totesora claimed she allowed longer conversations without timing the call, while Marcos admitted to making a free call to her brother.
• PLDT found their explanations unsatisfactory and terminated their employment.
• Macabenta, allegedly on probationary status, was dismissed for not meeting minimum requirements for regular employment.
• Macabenta contended she had been continuously employed since April 1985 and should have been regularized before her termination on June 17, 1986.
• The union representing the dismissed employees and PLDT agreed to submit their disputes to voluntary arbitration.
• Arbitrator Montemayor issued a resolution on February 14, 1989, stating Totesora and Marcos violated company regulations but recommended a transfer instead of dismissal.
• He found Macabenta's dismissal unjustified and recommended her reinstatement.
• PLDT's motion for reconsideration was denied, leading to a petition for certiorari.

Issue:

• (Unlock)

Ruling:

• The Supreme Court granted the petition in part.
• The reinstatement of Totesora and Marcos was set aside.
• The reinstatement of Macab...(Unlock)

Ratio:

• The Court held that the Voluntary Arbitrator gravely abused his discretion by ordering the reinstatement of Totesora and Marcos due to their actions constituting valid grounds for dismissal based on dishonesty.
• The Court emphasized that dishonesty undermines the trust essential in their roles, particularly when it threatens the company's core operations.
• The fraudulent handling of long-di...continue reading