Title
Ilocos Sur Electric Cooperative, Inc. vs. National Labor Relations Commission
Case
G.R. No. 106161
Decision Date
Feb 1, 1995
Engr. Sabio, ISECO manager, criticized Bautista's expenses, was dismissed without cause. NLRC ruled illegal dismissal; Supreme Court upheld reinstatement with backwages.
A

Case Summary (G.R. No. 106161)

Background of the Case

Engr. Egdon Sabio was employed as the Manager of the Engineering Department at ISECO beginning in May 1982. He was relieved of his duties on June 10, 1989, and subsequently terminated on July 1, 1989, based on a board resolution citing serious misconduct. The conflict arose shortly after Sabio raised concerns regarding the excessive travel expenditures of his superior, Atty. Efren Bautista, during which Bautista spent substantial time away from the cooperative's operations.

Summary of Events Leading to Dismissal

On June 8, 1989, Sabio communicated discrepancies in Bautista's expenses to the ISECO Board. Following this, Bautista pressured Sabio to resign, even offering a vacation leave—both of which Sabio declined. He sent an apology letter to Bautista, reaffirming his compliance with cooperative regulations. Subsequently, Bautista issued a memo relieving Sabio from his managerial post, followed by another requiring Sabio to justify his actions related to grave misconduct charges.

Findings and Recommendations from the Ad Hoc Committee

Despite Sabio’s denials, an ad hoc committee formed by Bautista accused him of multiple infractions, including unauthorized communication and solicitation of support for Bautista's dismissal. The committee noted a loss of trust in Sabio, recommending his dismissal. ISECO's Board adopted this recommendation, terminating Sabio's employment retroactively to July 1, 1989.

Legal Proceedings Initiated by Sabio

In response to his termination, Sabio filed a complaint for illegal dismissal with the National Labor Relations Commission (NLRC). The Labor Arbiter ruled in favor of Sabio, asserting that his termination lacked due process. The ruling ordered his reinstatement and awarded him back wages and damages.

Jurisdictional Claims

The petitioners contested the NLRC's jurisdiction, citing Presidential Decree No. 269, which they argued granted the National Electrification Administration (NEA) authority to oversee management decisions in electric cooperatives. However, the court noted that the NEA does not possess jurisdiction over employee dismissal cases, which fall within the purview of labor arbiters as outlined in the Labor Code.

Analysis of Dismissal Grounds

The petitioners asserted the dismissal was justified under management prerogative as per Article 283 of the Labor Code; however, the

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