Case Summary (G.R. No. 203060)
Background of Certification Election
On November 11, 1996, the union filed a Petition for Certification Election with DOLE–NCR. DOLE–NCR denied it for non-compliance with procedural requirements and for fragmenting petitioner’s workforce.
Cash Remittance Dispute
On June 2, 1997, cashier Francis Mendoza failed to remit ₱71,692.50. Mendoza implicated union president Kimpo, who claimed ignorance of remittance procedures. Mendoza was suspended; Kimpo reassigned.
Refusal to Bargain and Strike Call
Union notified the hotel of its Notice to Bargain a CBA “for its members only.” Hotel refused recognition without DOLE certification. Union then called a strike vote and filed a Notice of Strike on September 29, 1997, alleging unfair labor practices.
Picketing and Physical Obstruction
Beginning November 29, 1997, the union and allied NUWHRAIN picketed, obstructing ingress and egress, holding noise barrages, threatening guests, exploding firecrackers. Supervisors Agustin, Junio, and de Leon joined and were later dismissed.
DOLE and NLRC Proceedings
– December 1, 1997: Hotel secured an injunction before NLRC; NLRC issued TRO on December 8, 1997 directing strikers to cease obstruction.
– December 1997–January 1998: NCMB and DOLE efforts at conciliation and compulsory arbitration failed.
– April 15, 1998: DOLE Secretary certified dispute to NLRC and ordered reinstatement of strikers.
– April 30, 1998: Acting DOLE Secretary modified order, requiring only reinstatement to payroll and consolidation of cases.
NLRC and Court of Appeals Decisions
– November 19, 1999 NLRC: Declared strike illegal; union officers and members lost employment status; dismissed all related complaints.
– November 21, 2002 CA: Affirmed illegality and officers’ loss of status; reversed loss of status for union members; ordered their reinstatement with backwages.
Strike Illegality Under the Constitution and Labor Code
Section 3, Article XIII of the 1987 Constitution guarantees the right to strike “in accordance with law.” Article 264 of the Labor Code prohibits strike during pending ULP cases and acts of violence or obstruction. Photos and ocular reports showed blockade of entrances, noise barrage, threats, and violence—acts rendering the strike illegal.
Lack of Exclusive Bargaining Representation
Article 255 limits collective bargaining to the majority-designated labor organization. The union, not being certified, could not lawfully demand a CBA even “for its members,” lest it fragment the workforce and weaken collective strength.
Commission of Illegal Acts by Strikers
Under Article 264(e), picketing that obstructs ingress/egress or uses coercion is illegal. The union’s tactics—blockades, placards, threats, firecrackers—constituted obstruction and intimidation.
Employment Status Consequences
Article 264(a)(3) provides that any union officer who knowingly participates in an illegal strike, and any worker who commits illegal acts during a strike, loses employment status. Ordinary strikers lose status only upon proof of specific illegal acts.
Backwages Policy
Case Syllabus (G.R. No. 203060)
Facts
- The Manila Diamond Hotel Employees Union was registered on August 19, 1996, and on November 11, 1996 filed a petition for certification election with DOLE-NCR, which was denied for non-compliance with Section 2, Rule V, Book V of the Implementing Rules of the Labor Code and for fragmenting the bargaining unit.
- On June 2, 1997, cashier Francis Mendoza failed to remit ₱71,692.50; he attributed the shortfall to union president José Leonardo B. Kimpo. Mendoza was suspended for one week; Kimpo, unaware of remittance rules, was reassigned to Cost Control on July 14, 1997.
- Through Kimpo, the union served a Notice to Bargain for a collective bargaining agreement (CBA). The Hotel refused recognition because the union lacked DOLE certification. The union threatened concerted activities if rebuffed.
- On September 18, 1997 the union called a strike vote; on September 29 it filed a Notice of Strike with the National Conciliation and Mediation Board (NCMB), alleging unfair labor practices (ULP) and harassment.
- NCMB conciliation conferences were held October 6, 13, and 20, and November 20, 1997. The parties agreed in principle to a consent election in January 1998 if the union followed legal procedure.
- On November 29, 1997, the union and the National Union of Workers in the Hotel, Restaurant and Allied Industries (NUWHRAIN) initiated a sudden strike. Supervisors Agustin, Junio, and De Leon joined the picket line.
- The Hotel filed for injunctive relief with the NLRC on December 1, 1997. Agustin, Junio, and De Leon were terminated for participating in the strike and each filed complaints for illegal dismissal.
- An NLRC ocular inspection confirmed that strikers blocked free ingress and egress; on December 8, 1997 the NLRC issued a temporary restraining order (TRO). Strikers refused to dismantle their tents; removal led to clashes and injuries on December 10. NCMB and Department of Tourism conciliation failed.
- The Hotel petitioned the NLRC on January 28, 1998 to declare the strike illegal. DOLE Secretary Trajano (April 15) and Acting Secretary Español (April 30) assumed jurisdiction, certified the dispute for compulsory arbitration, directed the Hotel to reinstate strikers to payroll, and consolidated pending cases.
Procedural History
- DOLE-NCR denied the union’s certification-election petition (1996).
- NCMB conducted conciliations and a