G.R. No. 75704 - Rubberworld , Inc. vs. National Labor Relations Commission

Respondent Nestor Malabanan was employed by Rubberworld (Phils.), Inc. as an ordinary clerk beginning September 25, 1978.
In May 1980, he was promoted to the position of production scheduler with a corresponding salary increase, signifying recognition of his performance.
On September 1, 1983, he was transferred to the Inventory Control Section as a stock clerk, a move that later became central to disputes over his capabilities and duties.

On April 6, 1984, a Financial Audit Report from the company's Internal Audit Department revealed significant material variances between the year-end actual inventory and the records maintained in the Cards (SC)/EDP Control Records.
In response to these discrepancies, Noel Santiago, the Section Head of the Inventory Control Section, was tasked to investigate the issue at the request of Elpidio Hidalgo, the Plant I General Manager.
Following his investigation, Santiago submitted a report recommending the dismissal of Malabanan based on the discrepancies observed in the stock cards.

Rubberworld (Phils.), Inc., after a reinvestigation by its Human Resources Division which confirmed Santiago’s recommendation, dismissed Malabanan on June 6, 1984.
On June 16, 1984, Malabanan, along with complainant Jonathan Transmil, filed a complaint for unfair labor practice and illegal dismissal. They alleged:

That they were members of the monthly salaried employees’ union affiliated with TUPAS.
That the company forced them to disaffiliate from the union, and their refusal to resign from it led to their dismissal.

The petitioner (Rubberworld) denied these allegations, contending that the dismissal was due to Malabanan’s gross and habitual neglect of duty rather than his union affiliation.

The Labor Arbiter issued a decision on January 30, 1985, dismissing the complaint for lack of merit.
Malabanan appealed the adverse decision, and on June 17, 1986, the National Labor Relations Commission (NLRC) reversed the Labor Arbiter’s decision:

The NLRC found merit in reinstating Malabanan based on findings that his dismissal was unjust and possibly tainted with unfair labor practices.
The NLRC directed the reinstatement of Malabanan as production scheduler, with full backwages, maintaining his seniority rights.

Subsequent motions for reconsideration by Rubberworld were denied on July 23, 1986.
On September 3, 1986, Rubberworld filed a petition for certiorari, challenging the NLRC’s decision on the grounds of grave abuse of discretion and lack of jurisdiction.

The complainant’s evidence regarding union membership was largely based on his affidavit and that of his father, with no corroborative evidence from the union itself.
There were inconsistencies in his allegations, particularly his failure to be supported by the union he claimed to be a member of, as he instead solicited the support of another union (PAFLU).
The petitioner argued that any transfer of position (from production scheduler to stock clerk) was simply a matter of company prerogative and did not necessarily imply interference with union activities.

Whether the dismissal of respondent Malabanan was tainted with an unfair labor practice, specifically in relation to the alleged interference with his union membership.

The contention examined if the transfer to a lower position was intended as a punitive measure against union affiliation.
It questionned if the evidence provided by Malabanan regarding his union membership was sufficient and credible.

Whether there existed a just and valid cause for the dismissal of respondent Malabanan under the provisions of the Labor Code.

The issue considered whether Malabanan’s alleged gross and habitual neglect of duty (inaccurate posting in the stock cards) justified his dismissal.
It examined if the disciplinary action was proportionate to the offense and consistent with management prerogatives and legal standards.