Title
Soriano vs. Atienza
Case
G.R. No. 68619
Decision Date
Mar 16, 1989
Workers dismissed after union expulsion under CBA; SC upheld NLRC, ruling no unfair labor practice or financial assistance due to company's good faith compliance.

Case Digest (G.R. No. 182434)
Expanded Legal Reasoning Model

Facts:

  • Parties and Nature of the Case
    • Complainants: Lourdes Soriano, Dorotea Tamaca, Asuncion Vera, Marciana de los Reyes, Evelyn Dacallas, Yolanda Villanueva, Antonio Dabe, Zoraida Delantar, Anita Dana, and Anacurita Navarro.
    • Respondents:
      • Private – Shellwood Industries Philippines, Incorporated; Ramon Panique (company president and owner).
      • Union – Concepcion Nuguid (former president of Samahan ng Malayang Manggagawa sa Shellwood Industries).
    • Claims: Illegal dismissal, unfair labor practice, and moral damages.
  • Chronology of Key Events
    • February 5, 1981 – A compromise agreement is reached between the union and the company wherein Shellwood Industries agreed to give P20,000.00 as financial assistance in consideration of the union’s withdrawal of a pending case (Case No. NCR-FSD-J5-662-79).
    • April 4, 1982 – During a general union meeting, questions arose regarding the disposition of the P20,000.00; instead of answering, Concepcion Nuguid tendered her written resignation.
    • April 5, 1982 – The resignation of Nuguid was formally and unconditionally accepted through a board resolution.
    • Subsequent Period – Following Nuguid’s resignation, the union remained dormant for more than three months.
  • Union Reorganization and Subsequent Actions
    • July 13, 1982 – The remaining union officers convened a meeting and passed three resolutions:
      • Affiliation of the local union with the National Federation of Labor.
      • Delegation of labor-relations powers to the federation.
      • Formation of a steering committee to serve as the union’s board of officers.
    • August 5, 1982 – The National Federation of Labor notified Shellwood Industries about the new union structure and the affiliation.
    • July 29, 1982 – In a general union meeting conducted by Nuguid, a resolution was approved to expel the complainants and to request the company to terminate their services, in line with the collective bargaining agreement (CBA).
    • August 16, 1982 – The ten complainants were dismissed from service following the union’s request.
  • Decisions of the Labor Arbiter and the NLRC
    • October 28, 1983 – Labor Arbiter Pelagio A. Carpio issued a decision ordering:
      • Immediate reinstatement of the complainants as regular employees without backwages.
      • Extension of financial assistance equivalent to six months’ salaries (while dismissing the claims for unfair labor practice and moral damages).
    • On Appeal – The NLRC affirmed the reinstatement order but deleted the award of financial assistance on the ground that it lacked both legal and factual basis.
  • Petition for Certiorari and Grounds of Contention
    • Sole Issue Raised: Whether the NLRC gravely abused its discretion in deleting the financial assistance award.
    • Petitioners’ Arguments:
      • The company had full knowledge of Concepcion Nuguid’s resignation and, consequently, her lack of authority to represent the union.
      • The dismissal, effected pursuant to Nuguid’s request, culminated in an illegal dismissal, thereby entitling the complainants to financial assistance for their sufferings and damages.
    • Public Respondents’ Defense:
      • The award of financial assistance has no legal basis since no law mandates such grant and it is inconsistent with the order of reinstatement without backwages.
      • The company acted in good faith, complying with the clear provisions of the CBA and the union request, thereby relieving it of any bad faith allegations.

Issues:

  • Whether the NLRC gravely abused its discretion by deleting the award of financial assistance granted by the Labor Arbiter.
  • Whether Concepcion Nuguid, having tendered her resignation and lost her legitimate authority, had the capacity to authorize the dismissal of the complainants.
  • Whether the company acted in bad faith by dismissing the complainants based on a request purportedly made by a union leader who was no longer duly authorized.
  • Whether the deletion of the financial assistance contradicts the principles of legal and factual evidence as applied in collective labor relations under the CBA.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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