Title
Soco vs. Mercantile Corporation of Davao
Case
G.R. No. L-53364-65
Decision Date
Mar 16, 1987
Employee dismissed for unauthorized use of company vehicle for union activities; Supreme Court upheld dismissal but granted separation pay for 18 years of service.

Case Digest (G.R. No. 77539)
Expanded Legal Reasoning Model

Facts:

  • Parties Involved
    • Petitioner: Domiciano Soco, who was employed as a driver for Mercantile Corporation of Davao (MERCO) and also served as the President of the MERCO Employees Labor Union (MELU), an affiliate of the Federation of Free Workers (FFW).
    • Private Respondent: Mercantile Corporation of Davao, a company engaged in the sale and distribution of ice cream.
    • Other Respondent: The Honorable Amado G. Inciong, Deputy Minister of Labor, who later affirmed the disciplinary order.
  • Employment and Union Activity
    • Soco’s Role: As a driver, Soco’s duties included delivering ice cream using the company vehicle.
    • Union Leadership: Soco was actively involved in union activities, including efforts to transfer his union’s affiliation from FFW to Southern Philippines Federation of Labor (SPFL).
    • Company Rule: Company Rule No. 19(a) prohibited the use of the company vehicle for personal or unauthorized union purposes, prescribing a suspension for the first offense and dismissal for subsequent violations.
  • Chronology of Infractions and Disciplinary Proceedings
    • First Infraction (January 1979)
      • On January 25, 1979, Soco deviated from his usual delivery route to visit a co-employee during off-duty hours, an act linked to his union activities.
      • Responding to reports, the personnel officer investigated and summoned Soco to provide an explanation, but he did not comply.
      • On January 30, 1979, when MERCO called for a grievance conference via the FFW, Soco refused to participate, expressing his belief that such a conference was unnecessary.
      • MERCO imposed a suspension of five (5) days effective February 15, 1979, for violating the company rule.
  • Second Infraction (February 1979)
    • On February 13, 1979, during his delivery assignments, Soco went to the office of the SPEL Union instead of following his assigned route.
    • In the presence of union officials and company personnel, the MERCO manager inspected the company vehicle and discovered irregularities.
    • Again, Soco was summoned to explain his unauthorized deviation but failed to do so.
    • Following these events, on February 14, 1979, Soco filed a complaint for unfair labor practice against MERCO, alleging that his discipline—initially a five-day suspension—was a pretext tied to his union activities.
  • Consolidation of Cases and Administrative Proceedings
    • MERCO simultaneously filed an application for clearance to terminate Soco’s employment and responded to the unfair labor practice complaint.
    • The two cases (termination clearance and the unfair labor practice complaint) were consolidated and tried jointly by the Regional Director of the Ministry of Labor.
    • On May 21, 1979, the Regional Director granted MERCO’s application to terminate Soco’s employment, upheld the preventive suspension, and dismissed the unfair labor practice complaint.
  • Judicial Review and Intervention
    • Soco appealed the decision, which led to the review by the Deputy Minister of Labor.
    • On October 25, 1979, the Deputy Minister affirmed the Regional Director's decision.
    • Soco then filed a petition for certiorari challenging the administrative orders on grounds of grave abuse of discretion and alleged lack of jurisdiction, citing Policy Instruction No. 6 of the Ministry of Labor and Employment regarding jurisdiction over unfair labor practice cases.

Issues:

  • Jurisdictional Challenge
    • Whether the Regional Director had proper jurisdiction to hear and decide the unfair labor practice complaint, given that Policy Instruction No. 6 allegedly vests exclusive original jurisdiction in the Conciliation Section of the Ministry of Labor.
    • Whether Soco’s voluntary submission to the jurisdiction of the Regional Director constituted a waiver of any subsequent jurisdictional challenge.
  • Legitimacy of the Disciplinary Sanction
    • Whether the dismissal and termination of Soco’s employment were justified based on the evidence of his violation of Company Rule No. 19(a) on two separate occasions.
    • Whether the disciplinary measures imposed were proportionate given Soco’s long tenure (18 years) and the alleged minimal damage caused by his actions.
  • Procedural and Substantive Fairness
    • Whether Soco’s failure to attend scheduled grievance conferences or present explanations invalidated the disciplinary proceedings.
    • Whether the administrative findings, being supported by substantial evidence, effectively precluded a reexamination on appeal.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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