Title
Grand Boulevard Hotel vs. Genuine Labor Organization of Workers in Hotel
Case
G.R. No. 153664
Decision Date
Jul 18, 2003
A labor dispute involving illegal strikes, retrenchment, and termination of union members, ruled in favor of the employer due to procedural violations and financial justification.

Case Summary (G.R. No. 153664)

Collective Bargaining Agreements and Initial Dispute

On February 27, 1987, petitioner and GLOWHRAIN-Silahis executed a CBA covering July 10, 1985 to July 9, 1988. Following alleged illegal dismissals and suspensions of union members, the union filed a notice of strike on May 26, 1987. The Acting Secretary of Labor issued a status quo ante bellum order on June 4, 1987, certifying the dispute to the NLRC for arbitration and ordering employees’ return.

Notices of Strike and Return-to-Work Orders in 1990

On May 9, 1990, the union filed another strike notice over CBA violations and illegal dismissals. A May 23, 1990 status quo ante bellum order again certified the dispute to the NLRC, ordered return to work, and enjoined strike or lockout. The parties executed a third CBA on June 15, 1990, covering July 10, 1988 to July 9, 1991.

Third CBA Violations and Harassment Allegations

Union President Rogelio Soluta protested CBA violations on August 22, 1990, citing unauthorized deduction of union dues. Management responded by suspending union grievance director Apolonio Bondoc, Jr. on September 6, 1990, and counselor Francisco Pineda on September 22, 1990. The union filed contempt and strike notices in late September.

Retrenchment Announcement and Union’s Strike Vote

On October 16, 1990, petitioner’s general manager notified DOLE-NCR of a plan to retrench 171 less-senior employees over 60 days due to financial losses. The union conducted a strike-vote referendum on October 23–24, approved the strike, and informed DOLE-NCR on October 25. On October 31, DOLE-NCR issued a status quo ante bellum order certifying the dispute and enjoining any strike or lockout.

Unauthorized Strike and Management’s Dismissals

Despite the October 31 order, the union staged a picket on November 16, 1990, blocking hotel ingress and egress. Police dispersed picketers and detained union officers. Petitioner then dismissed 60 employees and two union officers effective December 6, 1990, and later dismissed additional employees, citing participation in an illegal strike and gross misconduct.

Labor Arbiter’s Decision on Illegal Strike

On February 12, 1992, Labor Arbiter Linsangan declared the November 16–29, 1990 strike illegal for non-compliance with Articles 263–264 procedural requirements, finding admitted participation by union officers. He upheld the dismissals as legal consequences of an illegal strike.

NLRC’s Affirmation and Humanitarian Assistance

On September 30, 1993, the NLRC dismissed the union’s appeal, affirming the Labor Arbiter’s illegal-strike ruling. It urged—but did not award—financial assistance equivalent to one month’s pay per year of service for humanitarian reasons, citing Supreme Court precedent that voluntary grants may be made but not enforced by award.

Court of Appeals’ Reversal and Remedies

Pursuant to St. Martin Funeral Homes v. NLRC, the CA in January 2002 g

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