Title
Hongkong and Shanghai Banking Corp. Employees Union vs. National Labor Relations Commission
Case
G.R. No. 156635
Decision Date
Jan 11, 2016
Union's 1993 strike against HSBC declared illegal due to procedural violations; some employees unlawfully dismissed, awarded backwages, separation pay, and nominal damages.

Case Summary (G.R. No. 156635)

Prohibited Acts During Picketing

Record evidence—including affidavits, photographs, video footage, and witness testimony—established that picketers obstructed HSBC’s entry and exit points, employed intimidation and physical force, and prevented executives from leaving the premises. Such obstruction and coercion violated Article 264(e), further invalidating the strike regardless of its end purpose.

Good Faith Claim Negated by Procedural Violations

Although petitioners argued they sincerely believed the JEP constituted an unfair labor practice (ULP), their disregard of mandatory procedural requirements negated any claim of good faith. Compliance with notice, voting, and reporting rules is indispensable for a lawful strike.

Individual Liability for Officers and Members

Under Article 264(a), union officers who knowingly participate in an illegal strike lose employment status upon proof of their overt participation. Officers Dela Chica, Militante, Atanacio, and Rivera were properly held liable for leading or joining the strike. Mario T. Fermin, however, was on medical leave and not shown to have actively participated; his termination was invalid. Rank-and-file members may be dismissed only if they knowingly commit illegal acts during the strike. HSBC failed to prove such acts for the 18 identified members, rendering their dismissals unlawful.

Failure to Observe Due Process in Terminations

HSBC’s “return-to-work” and “termination” notices lacked detailed grounds, specific factual allegations, and opportunity for a meaningful written defense, falling short of the twin-notice requirement under Article 277(b). The lack of a valid first notice and subsequent hearing constituted a denial of procedural due process.

Remedies and Awards

  1. Officers and employees terminated without substantive and procedural due process are e
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