Title
Macleod and Co. of the Philippine vs. Progressive Federation of Labor
Case
G.R. No. L-7887
Decision Date
May 31, 1955
A labor union protested the illegal termination of 38 employees by Macleod & Company, leading to a strike. The Court ruled the termination unlawful, ordering reinstatement with back wages, minus earnings during termination.
A

Case Summary (G.R. No. 81961)

Background of the Dispute

On April 18, 1952, the Progressive Federation of Labor sent a letter to Macleod & Company detailing grievances and demands for improved labor conditions. In reply, on May 2, 1952, Macleod notified the thirty-eight laborers that their services would be terminated on June 1, 1952, unless they agreed to work for another entity, specifically the Davao Stevedore Terminal Company. The union sought an injunction from the Court of Industrial Relations to prevent this termination, citing potential injustices and irreparable harm.

Legal Arguments Presented by Petitioner

MacLeod’s position was that they could terminate employment upon thirty days’ notice, relying on Article 302 of the Code of Commerce, which allowed such action without needing to establish the legitimacy of the labor union. They argued that the thirty-eight workers did not have fixed contracts of employment, thus justifying the terminations.

Legal Principles and Ruling on Termination

The Court rejected the petitioner’s reliance on Article 302, highlighting that it had been repealed by the new Civil Code. It underscored that labor relations are subject to considerations of public interest and social justice, which go beyond mere contract law. Given the context that the union's grievances were ignored, the Court found that the notice of termination was without justification as it contravened Section 19 of Commonwealth Act No. 103, which protects employees when a labor union presents grievances.

Ruling on the Right to Wages During Strike

The second issue at hand was whether the strikers were entitled to wages during the strike. Generally, the rule is that strikers do not receive wages for days not worked. However, the Court recognized that the thirty-eight laborers were essentially locked out rather than voluntarily choosing to strike. The company’s notice of termination left them no option but to stop working.

Unfair Labor Practices and Reinstatement

The Court also noted that the company employed tactics that could be interpreted as

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