Title
Sta. Cecilia Sawmills, Inc. vs. Court of Industrial Relations
Case
G.R. No. L-19273-74
Decision Date
May 25, 1964
Labor dispute over unjust dismissal; court granted 3 months' back pay instead of reinstatement due to sawmill closure, citing financial losses.

Case Summary (G.R. No. L-19273-74)

Petitioner’s Motion for Reconsideration

In its motion for reconsideration, the petitioner contends that the order mandating the reinstatement of 113 laborers is impractical due to the claimed impossibility of reinstatement and the financial losses that such an order would impose on the petitioner. The court recognized these concerns and, in lieu of reinstatement, ordered that the affected laborers be compensated with three months' back pay. The ruling suggests that while the petitioner may experience financial strain due to these payments, it is a necessary consequence of the unlawful dismissal of employees.

Denial of the Motion for Reconsideration

The court ultimately denied the motion for reconsideration filed by Sta. Cecilia Sawmills, Inc. It highlighted that the three months' pay ordered was a direct consequence of the company’s actions in dismissing the employees without just cause. The court emphasized that the penalties incurred due to the unlawful termination are justified to uphold workers' rights and ensure they are compensated for their unlawful dismissal.

Respondent Union’s Motion for Reconsideration

The Tagkawayan Labor Union also filed a motion for reconsideration, arguing against the decision that limited compensation to three months' wages rather than demanding the reinstatement of the employees. The union's primary argument centered around the lack of evidence presented at trial regarding the alleged closure of the sawmills operated by the petitioner, which they claimed negated the basis for denying reinstatement.

Court's Analysis on the Matter

The court addressed the respondent's concerns by indicating that the absence of evidence concerning the closure of the sawmills was likely due to the trial’s focus on other pertinent issues, particularly the question of whether member employees could be removed based on affiliation with a specific labor union under a closed-shop agreement. The court noted that the issue of closure was not relevant at the trial's inception.

Justification for Variance from Initial Ruling

Despite the limitations of evidence presented during the trial, the court acknowledged the factual basis provided post-decision that demonstrated the petitioner's business losses justified the operational cessation of the sawmills. This rational

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