Title
National Labor Union, Inc. vs. Court of Industrial Relations
Case
G.R. No. 46598
Decision Date
Oct 14, 1939
Labor union appeals court rulings after strikers' sabotage led to dismissal; public utility exempt from strike-breaker ban, contract unresolved.

Case Summary (G.R. No. 159402)

Background of the Dispute

The Petitioner seeks a judicial review of the Court of Industrial Relations' decision rendered on December 20, 1938, which the Petitioner contends is contrary to law, the weight of evidence, and violates its rights. The Petitioner raised several issues: the Court’s failure to hold the Manila Gas Corporation in contempt for employing strikebreakers, to permit strikers to return to work under prior conditions, and to order the strikers back to work given the ongoing nature of the dispute.

Employment of Strikebreakers

The central allegation by the Petitioner is that the Manila Gas Corporation violated section 19 of Commonwealth Act No. 103, which prohibits the hiring of strikebreakers during a labor dispute without court permission. However, an amendment to this provision allows for exemptions for public utilities. The Court determined that as Manila Gas Corporation functions as a public utility, it was not in violation of this prohibition when it employed strikebreakers during the strike. As such, the Court of Industrial Relations did not err in finding no contempt.

Just Causes for Dismissal

The Court also evaluated whether the Industrial Relations Court correctly refrained from ordering the Manila Gas Corporation to reinstate the strikers. Evidence showed that the strikers engaged in acts of sabotage against the company—such actions constituted just cause for dismissal. The Court referenced Article 1586 of the Civil Code, which allows for dismissal without cause under specific conditions, and concluded that the strikers’ actions significantly breached their implied contractual obligations, allowing the employer to terminate their employment based on these breaches.

Nature of the Strike

The strike was labeled illegal due to the violent and sabotage actions undertaken by the strikers, which hindered the company's operation and created public safety risks. Thus, the Court assessed that the strikers had forfeited their right to return to work due to the unlawful nature of their strike actions, ultimately reinforcing the company's right to engage other workers in compliance with public service obligations.

Impact of Employment Contract

Regarding a separate contract entered into between the Manila Gas Corporation and another union, it was established that the petitioners' strike and their noncompliance with the contract negated any rights associated with it. Despite the at

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