Title
Bagong Pagkakaisa ng Manggagawa ng Triumph International vs. Secretary of the Department of Labor and Employment
Case
G.R. No. 167401
Decision Date
Jul 5, 2010
CBA deadlock led to strike; Labor Secretary intervened, ordered return-to-work. Union officers dismissed for defying orders; wage increase awarded. SC upheld dismissal, jurisdiction, and wage decision.

Case Summary (G.R. No. 167401)

Antecedents

The union and the company had a CBA that expired on July 18, 1999, and the union proposed a substantial wage increase during negotiations, which were met with counteroffers from the company. This deadlock led to the union filing a notice of strike on October 15, 1999. Following failed mediation attempts, the company responded with a notice of lockout, and the union consequently went on strike. The Labor Secretary intervened on January 27, 2000, directing the workers to return within 24 hours. Despite attempts by some employees to report for work, union members hindered their entry, leading to subsequent orders and rejections of returning employees, particularly targeting union leaders.

Labor Secretary’s Decision

The Labor Secretary resolved the wage negotiations by granting a wage increase of P48.00, distributed over three years. The union later petitioned for reconsideration, arguing that the awards were insufficient and that their officers were wrongfully dismissed. The company sought the dismissal of the union’s petition based on the latter's refusal to comply with the return-to-work order.

Court of Appeals' Decision

The Court of Appeals (CA) found merit in parts of the union’s arguments, affirming the Labor Secretary’s wage increase but ruling that the dismissal of union officers required further examination. The CA argued that the Labor Secretary erred by not addressing the legality of the dismissals, citing previous court rulings that included questions of dismissal under the jurisdiction of the Labor Secretary in matters like strikes.

G.R. No. 167401 - Union's Arguments

The union’s petition focused on the CA’s confirmation of the wage increase as inadequate and the validation of Trinidad's dismissal. They contended that the company's financial conditions did not justify the Labor Secretary’s award and that Trinidad’s dismissal was based on insufficient evidence, contending it was discriminatory since other union members had accepted settlements.

G.R. No. 167407 - Company’s Arguments

In contrast, the company argued the CA overstepped its authority by addressing the dismissal issue, which it asserted was outside the Labor Secretary's jurisdiction. Additionally, they maintained that the union's actions during the strike were illegal and justified dismissals.

Court's Ruling on Wage Award

The Supreme Court upheld the CA’s decision regarding the Labor Secretary's wage award, observing that the determinants for the wage increase were rooted in prevailing market conditions and economic circumstances. The court emphasized respect for administrative interpretations made by the Labor Secretary and noted the recent successful negotiations indicating acceptance of past awards.

Court's Ruling on Dismissals

The court ruled on the dismissals, concluding that while the CA appropriately recognized the Labor Secretary's error in not addressing the dismi

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