Title
Supreme Court
Allied Banking Corp. vs. National Labor Relations Commission
Case
G.R. No. 116128
Decision Date
Jul 12, 1996
A labor dispute arose over a failed CBA renewal, leading to strikes defying a return-to-work order. The Supreme Court upheld the employees' dismissal for non-compliance, rejecting back wages and reinstatement claims.

Case Summary (G.R. No. 116128)

Applicable Law

The applicable law in this case includes provisions from the Labor Code of the Philippines, specifically Article 263(g), which pertains to the assumption of jurisdiction by the Secretary of Labor over labor disputes, and Article 264(a), which governs the legality of strikes and the conditions under which employees may be terminated for participating in strikes.

Case Background

The conflict arose following the expiration of the collective bargaining agreement on June 30, 1984, where the union and the bank could not agree on wage increases, prompting the union to file a notice of strike. Minister of Labor Blas Ople intervened, issuing orders that led to a return-to-work order, although subsequent strikes ensued, which members of the union—including the respondents—participated in. The bank asserted that the strikes violated the Secretary of Labor’s orders, leading to dismissals for allegedly abandoning their jobs following multiple warnings and return-to-work notices.

Labor Arbiter’s Decision

The Labor Arbiter concluded that the strikes were declared illegal as they occurred despite a valid return-to-work order in place. Consequently, union officers were found to have lost their employment status for participating in these illegal acts. However, for the non-officer employees, their dismissal was deemed invalid since they did not commit any illegal actions during the strikes. The Arbiter ordered reinstatement of those employees along with back wages.

NLRC and Supreme Court Review

The NLRC later upheld the Labor Arbiter's ruling regarding the illegal dismissal of the union officers but found that the non-officer employees should be reinstated. The Supreme Court, however, found that dismissals resulting from the employees' defiance of return-to-work orders were valid and thus affirmed the NLRC’s findings while rejecting its remand regarding back wages, as it was inconsistent with the ruling of valid dismissal.

Legal Principles and Findings

The Supreme Court articulated that mere participation in an illegal strike does not automatically lead to dismissal unless it involves defiance of a lawful order. The return-to-work order is non-discretionary and must be adhered to by the employees during the pendency of labor disputes. The

...continue reading

Analyze Cases Smarter, Faster
Jur is a legal research platform serving the Philippines with case digests and jurisprudence resources. AI digests are study aids only—use responsibly.