G.R. No. 151379 - University of Immaculate Concepcion, Inc. vs. Secretary of Labor

The University of Immaculate Concepcion, Inc. (UNIVERSITY) and the UIC Teaching and Non-Teaching Personnel and Employees Union (UNION) were engaged in collective bargaining negotiations, where the UNION was the certified bargaining agent of all rank and file employees.
A dispute arose regarding the inclusion or exclusion of certain positions (secretaries, registrars, accounting personnel, guidance counselors, cashiers) in the bargaining unit.
The matter was submitted for voluntary arbitration, and on November 8, 1994, the panel of voluntary arbitrators resolved to exclude certain positions from the bargaining unit while including some accounting staff.

The UNION filed a motion for reconsideration of the exclusion decision.
While the motion was pending, the UNION filed a notice of strike on December 9, 1994, due to bargaining deadlock and unfair labor practices.
During the 30-day cooling-off period, UNIVERSITY dismissed two union members.
The UNION proceeded with the strike on January 20, 1995.
On January 23, 1995, the Secretary of Labor assumed jurisdiction over the labor dispute under Article 263(g) of the Labor Code and ordered all workers to return to work and management to accept them back under previous terms and conditions.

On February 8, 1995, the panel of voluntary arbitrators denied the UNION’s motion for reconsideration.
UNIVERSITY then informed certain individual employees (excluded from the bargaining unit) about the denial and gave them two options: resign from the UNION and remain employed as confidential employees or resign from their confidential positions and remain union members.
The individual respondents refused to resign from the UNION while holding confidential positions.
UNIVERSITY terminated these individual respondents on February 21, 1995.
In response, the UNION filed another notice of strike on March 10, 1995, citing unlawful termination.

On March 28, 1995, the Secretary of Labor reiterated the January 23, 1995 directives and ordered as follows: the termination of the individual respondents shall be suspended pending legality determination, and they must be reinstated under previous terms and conditions.
UNIVERSITY filed a motion for reconsideration, arguing that reinstatement would negate the panel of arbitrators’ final decision excluding those employees from the bargaining unit.
The Secretary denied reconsideration in Orders dated June 16, 1995, July 19, 1995, and August 18, 1995. The last order modified earlier ones by allowing payroll reinstatement (instead of physical reinstatement) pending final resolution of termination validity.

The UNIVERSITY filed a petition for certiorari with the Supreme Court, which was referred to the Court of Appeals.
On October 8, 2001, the Court of Appeals dismissed the petition for lack of merit and affirmed the Secretary of Labor’s Orders.
UNIVERSITY’s motion for reconsideration before the Court of Appeals was denied on January 10, 2002.
UNIVERSITY filed the present petition before the Supreme Court, principally contending that the Secretary of Labor erred in ordering the suspension of the termination effects and reinstatement of employees not part of the bargaining unit.

Whether the Secretary of Labor, after assuming jurisdiction over a labor dispute involving an employer and a certified bargaining agent, may lawfully order the employer to reinstate employees terminated who are not part of the bargaining unit.