Title
Phimco Industries, Inc. vs. Phimco Industries Labor Association
Case
G.R. No. 170830
Decision Date
Aug 11, 2010
PHIMCO and PILA's CBA renewal deadlock led to a strike. SC ruled the strike illegal due to blocked access but found dismissals unlawful, awarding nominal damages for due process violations.

Case Summary (G.R. No. 170830)

Factual Background

During the negotiation for a collective bargaining agreement set to expire on December 31, 1994, PHIMCO and PILA reached a deadlock. PILA filed a Notice of Strike with the National Conciliation and Mediation Board (NCMB) on March 9, 1995, initiating a process that led to a strike vote and subsequent strike beginning on April 21, 1995. PHIMCO, concerned about the strike's impact, sought a temporary restraining order against the strikers. After dismissing 36 union members for alleged illegal acts during the strike, PILA filed a complaint for unfair labor practice with the National Labor Relations Commission (NLRC).

NLRC Ruling

The NLRC initially sided with PILA, ruling that the actions of the strikers did not constitute an illegal blockade and dismissing the charges against them. On March 2, 1999, the NLRC affirmed the reinstatement of the dismissed workers and awarded them back wages, ruling that their picketing was lawful.

Court of Appeals Ruling

PHIMCO filed a petition for certiorari in the Court of Appeals (CA), which was subsequently dismissed. The CA affirmed the NLRC’s findings that the strike had been conducted peacefully and not obstructively, thereby rejecting PHIMCO's claims.

The Petition and Respondents' Position

PHIMCO contended that the strike was illegal, highlighting violations of Article 264(e) of the Labor Code, including blocking access to the workplace. Respondents argued that the issues raised were factual and within the purview of the labor courts to determine.

Core Issue

The essential legal question was whether the CA correctly ruled that the NLRC did not commit grave abuse of discretion in determining that the strike was lawful.

Our Ruling on the Strike’s Validity

The Supreme Court found in favor of PHIMCO, declaring the strike illegal. It specified that for a strike to be considered valid, it must adhere to the procedural prerequisites outlined in Article 263 of the Labor Code, which the respondents satisfied. However, despite procedural compliance, the strike was rendered illegal due to the means employed—specifically, that the picketing obstructed ingress and egress to the company premises, thus violating Article 264(e).

Evidence of Illegal Picketing

The evidence, including photographs and affidavits, substantiated PHIMCO’s claims that the union's actions effectively blocked access to the workplace. Testimonies indicated that managers and employees were consistently denied entry, reinforcing the conclusion that the strike was not conducted in a lawful manner as required by labor laws.

Intimidation and Blocking of Access

The Court elaborated that intimidation could manifest not only through overt threats but also through the creation of an atmosphere that deters non-striking employees from crossing the picket line. The testimony and evidence revealed that respondents engaged in actions that unlawfully prevented entry and exit from company premises, constituting a breach of labor regulations.

Liabilities of Union Officers and Members

The Supreme Court underscored that union officers who knowingly participate in an illegal strike could be dismissed, as per Article 264(a) of the Labor Code. The evidence identified specific union officials as having participated in the illegal acts that led to the obstruction of access, which warranted dismissal.

Due Process Violations by PHIMCO

Howev

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