Title
Supreme Court
University of San Agustin Employees' Union-FFW vs. Court of Appeals
Case
G.R. No. 169632
Decision Date
Mar 28, 2006
A union's strike was declared illegal after defying a labor order, resulting in officers losing employment; economic disputes were referred to arbitration per CBA.

Case Summary (G.R. No. 169632)

Background of the Case

This case arose from a dispute between the University of San Agustin and its employees represented by the USAEU-FFW Union, pertaining to a collective bargaining agreement (CBA) that included a "no strike, no lockout" clause. Striking dissatisfaction with salary negotiations, the Union declared a deadlock regarding the computation of Tuition Incremental Proceeds (TIP) and subsequently initiated a strike, contravening the terms of their CBA and an Assumption of Jurisdiction Order (AJO) issued by the Secretary of Labor and Employment (SOLE).

Strike Declaration and Legal Proceedings

Following failed negotiations and a declared deadlock, the Union filed a notice of strike which the University opposed, arguing it violated the CBA’s no strike clause. On September 19, 2003, despite being served the AJO, the Union proceeded with the strike. The University filed a Petition to Declare Illegal Strike and Loss of Employment Status with the National Labor Relations Commission (NLRC), which the SOLE subsequently addressed.

Decisions of the Secretary of Labor and Appeals Court

The SOLE ruled on April 6, 2004, dismissing the University’s petition to declare the strike illegal and affirming that the Union members retained their employment status. The University sought reconsideration, which was denied. On appeal, the Court of Appeals found the strike illegal, declaring the Union's officers to have lost their employment status, while affirming SOLE's findings on economic issues.

Union's Arguments and Legal Framework

The Union contended that the CA erred in its classification of the strike as illegal and in denying the validity of their cause for the strike. They cited a customary practice that the SOLE would provide a grace period for strikers to return to work. The Union maintained there was no clear legal justification for the CA’s ruling and argued that issues surrounding the TIP should remain under the purview of the SOLE due to jurisdictional implications, as stated in the Labor Code.

Review of Legal Interpretations

The Supreme Court emphasized the importance of adhering to legal procedures surrounding notifications and strikes, particularly regarding the AJO. It clarified that under Article 263(g) of the Labor Code, failure to adhere to an AJO results in the automatic illegalization of any strike commenced after such an order is served. The Court supported the CA’s interpretat

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