Case Summary (G.R. No. 220935)
Overview of Parties and Applicable Law
MCCHI is a non-stock, non-profit organization operating Metro Cebu Community Hospital in Cebu City, owned by the United Church of Christ in the Philippines (UCCP). The NFL is the certified exclusive bargaining agent for hospital employees pursuant to collective bargaining agreements (CBAs) from 1987, 1991, and 1994. The local union, Nagkahiusang Mamumuo sa Metro Cebu Community Hospital (NAMA-MCCH-NFL), disaffiliated from NFL but lacked registration as an independent labor organization as confirmed by the Department of Labor and Employment (DOLE). Relevant law includes the 1987 Philippine Constitution, the Labor Code (especially Articles 242, 248, 253, 255, 261-264), and implementing rules on strikes and union activities.
Factual Background and Union Dispute
NAMA-MCCH-NFL, led by Perla Nava, sought to negotiate a new CBA directly with MCCHI in 1995 despite NFL’s status as the exclusive bargaining agent. MCCHI deferred negotiations due to an intra-union dispute between NFL and NAMA-MCCH-NFL, which was neither registered nor authorized to represent employees. NFL legal counsel suspended membership of several NAMA-MCCH-NFL officers for violations including disloyalty and unauthorized negotiations, based on the Federation’s constitution and by-laws. Subsequently, NAMA-MCCH-NFL conducted strike votes and engaged in picketing without lawful status or proper notice, leading to employer action.
Legality of Collective Bargaining and Union Recognition
MCCHI’s refusal to bargain with NAMA-MCCH-NFL was justified because the latter was not a duly registered labor organization nor the certified exclusive bargaining representative, criteria necessary under the Labor Code for collective bargaining rights. The Court emphasized that disaffiliation without compliance to legal requisites, such as secret balloting during the “freedom period,” does not confer independent legal personality, thus barring the local union from negotiating or declaring strikes. Intra-union disputes must be resolved independently, and employers are not obligated to deal with unrecognized groups.
Strike and Picketing Activities Declared Illegal
The strike initiated by NAMA-MCCH-NFL was deemed illegal due to: (1) the lack of legal personality and certification to represent employees; (2) failure to comply with mandatory strike notice and polling requirements; and (3) involvement in prohibited acts during the strike such as violence, intimidation, coercion, harassment of non-striking employees, and obstruction of ingress and egress to hospital premises. The Department of Labor and Employment and National Conciliation and Mediation Board records did not recognize the strike’s legality. The local government ordered demolition of strike-related obstructions classified as public nuisance, and the NLRC issued a permanent injunction against unlawful activities on hospital grounds.
Consequences for Union Officers and Employees
Under Article 264 of the Labor Code, union officers who knowingly participate in illegal strikes may be terminated, while rank-and-file workers cannot be terminated solely for participating, unless they committed illegal acts during the strike. Considering the union officers’ role in unauthorized negotiations and continuation of illegal strike activities despite warnings, their termination was valid and justified. For rank-and-file employees, the Court found no clear proof of individual commission of illegal acts, rendering their dismissal unlawful.
Rights of Dismissed Employees and Relief Measures
Although the Court recognized the illegal dismissal of rank-and-file union members, it denied back wages on the basis of the “fair day’s wage for a fair day’s labor” principle because the employees did not render service during the illegal strike. Reinstatement was deemed impractical due to the long duration of the dispute (over 15 years), strained relations, replacement of personnel, and some petitioners’ changed circumstances (including compromise agreements). Accordingly, separation pay equivalent to one month’s salary for every year of service, in lieu of reinstatement, was ordered as fair compensation.
On the Petitioners’ Certification Against Forum Shopping
The Court held that while the rule requires all petitioners to sign the certification against forum shopping, substantial compliance is sufficient when petitioners share the same interests and legal claims. The signatures of 47 out of 88 petitioners constituted substantial compliance, and the Court ruled that dropping non-signatories as parties was in error.
Application of Doctrine of Stare Decisis and Setting Aside Precedent
The petitioners cited prior jurisprudence (Bascon v. Court of Appeals) awarding back wages due to illegal dismissal involving the same strike. However, applying the recent rationale that “a fair day’s
Case Syllabus (G.R. No. 220935)
Factual Background and Parties Involved
- Metro Cebu Community Hospital, Inc. (MCCHI), presently known as Visayas Community Medical Center (VCMC), is a non-profit corporation managing a tertiary hospital in Cebu City.
- The hospital is owned by the United Church of Christ in the Philippines (UCCP) with Rev. Gregorio P. Iyoy as Administrator.
- The National Federation of Labor (NFL) was the exclusive bargaining representative of the hospital’s rank-and-file employees.
- Collective Bargaining Agreements (CBAs) were executed between MCCHI and NFL in 1987, 1991, and 1994, with duly authorized signatories representing each party.
- A local union chapter, Nagkahiusang Mamumuo sa Metro Cebu Community Hospital-National Federation of Labor (NAMA-MCCH-NFL), led by Perla Nava, attempted to negotiate a CBA independently, submitting proposals signed by union members.
- Conflict arose as NFL disavowed the local union's independent negotiation efforts, asserting it held the exclusive bargaining rights.
- MCCHI suspended the collection of union fees due to the conflict and sought to reclaim union office space, prompting protests and picketing by Nava’s group.
- NFL’s legal counsel suspended membership of several union officers who recognized a different labor organization (KMU) over NFL, leading to intra-union disciplinary actions.
- NAMA-MCCH-NFL conducted illegal strike and picketing activities without a valid Notice of Strike or proper labor organization registration, resulting in preventive suspensions, terminations, and eventually, injunctions from relevant authorities.
- Following these events, multiple dismissed employees filed complaints for illegal dismissal and unfair labor practice; decisions and appeals ensued over several years.
Legal Issues Presented
- Whether the dismissal of union officers and members involved in the illegal strike and picketing was lawful.
- Whether MCCHI committed unfair labor practices for refusing to bargain with the local union faction (NAMA-MCCH-NFL).
- The validity and legal personality of NAMA-MCCH-NFL as a legitimate labor organization.
- The legality of the strike and picketing actions conducted by the employees.
- The entitlement of dismissed employees to reinstatement, back wages, separation pay, attorney’s fees, and damages.
- The procedural propriety regarding certification against forum shopping and the joining or dropping of petitioners.
Certification Against Forum Shopping and Party Representation
- Rule requires all petitioners to sign the certification against forum shopping to maintain party status.
- Substantial compliance recognized where 47 out of 88 petitioners signed, as all shared a common interest and cause of action.
- Court ruled the CA erred when it dropped non-signatory petitioners, ordering that they continue as parties-petitioners.
- The principle that one or more petitioners may represent others in matters involving common interest was upheld.
Duty to Bargain and Legitimacy of the Labor Organization
- Article 248(g) of the Labor Code prohibits unfair labor practice including refusal to bargain collectively with a legitimate representative.
- Article 253 mandates parties keep collective bargaining agreements effective during their term and to negotiate renewal properly.
- The local union NAMA-MCCH-NFL was not a registered labor organization when it attempted collective bargaining negotiations.
- Only a duly certified and registered labor organization or exclusive representative has the legal right to bargain collectively.
- There was no valid disaffiliation of the local union fr