Philippine Supreme Court Jurisprudence > Year 2013 > January 2013 Decisions > G.R. No. 160138 : January 16, 2013 - AUTOMOTIVE ENGINE REBUILDERS, INC. (AER), ANTONIO T. INDUCIL, LOURDES T. INDUCIL, JOCELYN T. INDUCIL AND MA. CONCEPCION I. DONATO, Petitioners, v. PROGRESIBONG UNYON NG MGA MANGGAGAWA SA AER, ARNOLD VILLOTA, FELINO E. AGUSTIN, RUPERTO M. MARIANO II, EDUARDO S. BRIZUELA, ARNOLD S. RODRIGUEZ, RODOLFO MAINIT, JR., FROILAN B. MADAMBA, DANILO D. QUIBOY, CHRISTOPHER R. NOLASCO, ROGER V. BELATCHA, CLEOFAS B. DELA BUENA, JR., HERMINIO P. PAPA, WILLIAM A. RITUAL, ROBERTO CALDEO, RAFAEL GACAD, JAMES C. CAAMPUED, ESPERIDION V. LOPEZ, JR., FRISCO M. LORENZO, JR., CRISANTO LUMBAO, JR., AND RENATO SARABUNO, RESPONDENTS.; G.R. NO. 160192 - PROGRESIBONG UNYON NG MGA MANGGAGAWA SA AER, ARNOLD VILLOTA, FELINO E. AGUSTIN, RUPERTO M. MARIANO II, EDUARDOS. BRIZUELA, ARNOLD S. RODRIGUEZ, RODOLFO MAINIT, JR., FROILAN B. MADAMBA, DANILO D. QUIBOY, CHRISTOPHER R. NOLASCO, ROGER V. BELATCHA, CLEOFAS B. DELA BUENA, JR., HERMINIO P. PAPA, WILLIAM A. RITUAL, ROBERTO CALDEO, RAFAEL GACAD, JAMES C. CAAMPUED, ESPERIDION V. LOPEZ, JR., FRISCO M. LORENZO, JR., CRISANTO LUMBAO, JR., AND RENATO SARABUNO, Petitioners, v. AUTOMOTIVE ENGINE REBUILDERS, INC., AND ANTONIO T. INDUCIL, RESPONDENTS. :

For resolution is the Motion for Partial Reconsideration filed by Progresibong Unyon Ng Mga Manggagawa Sa AER (Unyon) which questioned the Court's July 13, 2011 Decision insofar as it failed to award backwages to fourteen (14) of its members. The decretal portion of the decision reads:chanroblesvirtualawlibrary

WHEREFORE, the petition are DENIED. Accordingly, the complaining employees should be be reinstated without backwages. � If reinstatement is no longer feasible, the concerned employees should be given separation pay up to the date set for their return in lieu of reinstatement.¹ςrνl1

In arriving at said determination, the Court found out both parties were at fault or in pari delicto and must bear the consequences of their own wrongdoing.²ςrνl1 Thus, it decreed that the striking employees must be restored to their respective positions prior to the illegal strike and illegal lockout.cralawlibrary

Records disclose that this labor controversy started when both parties filed charges against each other, blaming the other party for violating labor laws. Thirty-two (32) employees filed and signed a complaint,3 dated February 18, 1999, against Automotive Engine Rebuilders, Inc. (AER). The complaint prayed that AER be declared guilty of Unfair Labor Practices, Illegal Dismissal, Illegal Suspension, and Run-away shop; that the complainants be reinstated; and that they be paid "full backwages and without loss of seniority rights and privileges, payment of wages during suspension, plus moral and exemplary damages and attorney's fees.”⁴ςrνl1

The names of the 32 complaining employees are as follows:

1. Felino Agustin
   
2. Ruperto Mariano II
   
3. Eduardo Brizuela
   
4. Otilio Rabino
   
5. Arnold Rodriguez
   
6. Froilan Madamba
   
7. Ferdinand Flores
   
8. Jonathan Taborda
   
9. Rodolfo Mainit, Jr.
   
10. Danilo Quiboy
    
11. Christopher Nolasco
    
12. Roger Belatcha
    
13. Claud Moncel
    
14. Cleofas dela Buena, Jr.
    
15. Edwin Mendoza
    
16. Herminio Papa
    
17. Oscar Macaranas
    
18. William Ritual
    
19. Roberto Caldeo
    
20. Rafael Gacad
    
21. James Caampued
    
22. Esperidion Lopez, Jr.
    
23. Frisco Lorenzo, Jr.
    
24. Bernardino Acosta, Jr.
    
25. Benson Pingol
    
26. Tammy Punsalan
    
27. Edward Ferrancol
    
28. Crisanto Lumbao, Jr.
    
29. Arnold Villota
    
30. Menching Mariano, Jr.
    
31. Carlos Carolino
    
32. Renato Sarabuno

Out of the 32, six (6) resigned and signed waivers and quitclaims, namely:

1. Oscar Macaranas
   
2. Bernardino Acosta
   
3. Ferdinand Flores
   
4. Benson Pingol
   
5. Otillo Rabino
   
6. Jonathan Taborda

On the other hand, the earlier complaint5 filed by AER against Unyon and eighteen (18) of its members for illegal concerted activities prayed that, after notice and hearing, judgment be rendered as follows:

1. Finding respondents guilty of unfair labor practice and illegal concerted activity;
2. Finding respondents guilty of abandonment of work, serious misconduct, gross disrespect, commission of felonies against the complainant and their respective officers, threats, coercion and intimidation;
3. Penalizing complainants with dismissal and/or termination of employment; and
4. Adjudging respondents to be jointly and solidarily liable to complainant for moral damages in the sum of P500,000.00, exemplary damages in the sum of P500,000.00 and attorney's fees and costs.

The names of the 18 workers charged with illegal strike by AER are as follows:

1. Felino Agustin
   
2. Eduardo Brizuela
   
3. Otilio Rabino
   
4. Ferdinand Flores
   
5. Jonathan Taborda
   
6. Rodolfo Mainit, Jr.
   
7. Christopher Nolasco
   
8. Claud Moncel
   
9. Cleofas dela Buena
   
10. Herminio Papa
    
11. Oscar Macaranas
    
12. William Ritual
    
13. Rafael Gacad
    
14. James Caampued
    
15. Benson Pingol
    
16. Frisco Lorenzo, Jr.
    
17. Bernardino Acosta, Jr.
    
18. Esperidion Lopez, Jr.

AER likewise suspended seven (7) union members who tested positive for illegal drugs, namely:

1. Froilan Madamba
   
2. Arnold Rodriguez
   
3. Roberto Caldeo
   
4. Roger Bilatcha
   
5. Ruperto Mariano
   
6. Edwin Fabian
   
7. Nazario Madala

Out of the seven (7) suspended employees, only Edwin Fabian and Nazario Madala were allowed by AER to report back to work. The other five (5) suspended employees were not admitted by AER without first submitting the required medical certificate attesting to their fitness to work.cralawlibrary

On August 9, 2001, after the parties submitted their respective position papers,⁶ςrνl1 the Labor Arbiter (LA) rendered a decision⁷ςrνl1 in favor of Unyon by directing AER to reinstate the concerned employees but without backwages effective October 16, 2001. Both parties filed their respective appeals⁸ςrνl1 with the National Labor Relations Commission (NLRC).cralawlibrary

On March 5, 2002, the NLRC issued its Resolution⁹ςrνl1 modifying the LA decision by setting aside the order of reinstatement as it ruled out illegal dismissal. The NLRC likewise ruled that the concerned employees had no valid basis in conducting a strike. On April 19, 2002, Unyon filed a motion for reconsideration¹⁰ςrνl1 insisting, among others, that AER was guilty of unfair labor practice, illegal suspension and illegal dismissal. Unyon also argued that since AER charged only 18 of the 32 employees with illegal strike, the employees who were not included in the said charge should have been admitted back to work by AER. Unyon also claimed that there was no allegation that these employees, who were not included in AER's charge for illegal strike, were involved in the January 28, 1999 incident.¹¹ςrνl1

After the denial of their motion for reconsideration, Unyon and the concerned employees filed a petition¹²ςrνl1 before the Court of Appeals (CA). Unyon reiterated its argument that AER should admit back to work those excluded from its list of 18 employees charged with illegal strike.¹³ςrνl1

On June 27, 2003, the CA rendered a decision,¹⁴ςrνl1 the dispositive portion of which reads, as follows:chanroblesvirtualawlibrary

WHEREFORE, premises considered, the petition is GRANTED. Respondents are hereby directed to reinstate the petitioners effective immediately but without backwages, except those who were tested positive for illegal drugs and have failed to submit their respective medical certificates.

On October 1, 2003, ruling on the motion for partial reconsideration filed by Unyon, the CA rendered the assailed Amended Decision,¹⁵ςrνl1 ordering the immediate reinstatement of all the suspended employees without backwages. Thus,

WHEREFORE, the partial motion for reconsideration is GRANTED insofar as the reinstatement of the suspended employees is concerned. This Court's decision dated June 27, 2003 is hereby MODIFIED. Private respondents are hereby directed to reinstate all petitioners immediately without backwages.

Unsatisfied, both parties filed the present consolidated petitions. Unyon argued that the CA erred in not awarding backwages to the suspended employees who were ordered reinstated. AER, on the other hand, argued that the CA erred in ordering the reinstatement of the suspended employees.cralawlibrary

On July 13, 2011, this Court rendered a decision,¹⁶ςrνl1 the dispositive portion of which reads, as follows:chanroblesvirtualawlibrary

WHEREFORE, the petitions are DENIED. Accordingly, the complaining employees should be reinstated without backwages. If reinstatement is no longer feasible, the concerned employees should be given separation pay up to the date set for their return in lieu of reinstatement.

Unyon filed the subject Motion for Partial Reconsideration¹⁷ςrνl1 questioning the Court's July 13, 2011 Decision insofar as it failed to award backwages to fourteen (14) of its members.cralawlibrary

Unyon argues that backwages should have been awarded to the 14 employees who were excluded from the complaint filed by AER and that the latter should have reinstated them immediately because they did not have any case at all.cralawlibrary

AER was directed to file its comment. Its Comment,¹⁸ςrνl1 however, failed to address the issue except to say that the motion for partial reconsideration was pro-forma.cralawlibrary

After going over the records again, the Court holds that only nine (9) of the fourteen (14) excluded employees deserve to be reinstated immediately with backwages.cralawlibrary

Records disclose that thirty-two (32) employees filed a complaint for illegal suspension and unfair labor practice against AER. Out of these 32 workers, only eighteen (18) of them were charged by AER with illegal strike leaving fourteen (14) of them excluded from its complaint. The names of these 14 employees are as follows:chanroblesvirtualawlibrary

1. Ruperto Mariano II
   
2. Arnold Rodriguez
   
3. Froilan Madamba
   
4. Danilo Quiboy
   
5. Roger Belatcha
   
6. Edwin Mendoza
   
7. Roberto Caldeo
   
8. Tammy Punsalan
   
9. Edward Ferrancol
   
10. Crisanto Lumbao, Jr.
    
11. Arnold Villota
    
12. Menching Mariano, Jr.
    
13. Carlos Carolino
    
14. Renato Sarabuno

Technically, as no charges for illegal strike were filed against these 14 employees, they cannot be among those found guilty of illegal strike. They cannot be considered in pari delicto. They should be reinstated and given their backwages.cralawlibrary

Out of these 14 employees, however, five (5) failed to write their names and affix their signatures in the Membership Resolution¹⁹ςrνl1 attached to the petition filed before the CA, authorizing Union President Arnold Villota to represent them. It must be noted that Arnold Villota signed as the Affiant in the Verification and Certification by virtue of the Membership Resolution.²⁰ςrνl1 The names of these 5 employees are:

1. Edwin Mendoza
   
2. Tammy Punzalan
   
3. Edward Ferrancol
   
4. Menching Mariano, Jr.
   
5. Carlos Carolina
   

Because of their failure to affix their names and signatures in the Membership Resolution, Edwin Mendoza, Tammy Punzalan, Edward Ferrancol, Menching Mariano, Jr. and Carlos Carolina cannot be granted the relief that Unyon wanted for them in its Motion for Partial Reconsideration. Only the following nine (9) employees who signed their names in the petition can be granted the relief prayed for therein, namely:

1. Ruperto Mariano II
   
2. Arnold Rodriguez
   
3. Froilan Madamba
   
4. Danilo Quiboy
   
5. Roger Belatcha
   
6. Roberto Caldeo
   
7. Crisanto Lumbao, Jr.
   
8. Arnold Villota
   
9. Renato Sarabuno

These excluded nine (9) workers, who signed their names in their petition before the CA, deserve to be reinstated immediately and granted backwages. It is basic in jurisprudence that illegally dismissed workers are entitled to reinstatement with backwages plus interest at the legal rate.²¹ςrνl1

As stated in the Amended Decision of the CA, which the Court effectively affirmed after denying the petition of both parties, the reinstatement shall be "without prejudice to the right of private respondent AER to subject them for further medical check-up to determine if subject petitioners are drug dependents."²²ςrνl1

WHEREFORE, the Motion for Partial Reconsideration filed by Progresibong Unyon Ng Mga Manggagavva Sa AER is GRANTED only insofar as the nine (9) employees are concerned, namely: Ruperta Mariano II, Arnold Rodriguez, Froilan Madamba, Danilo Quiboy, Roger Belatcha, Roberto Caldeo, Crisanto Lumbao, Jr., Arnold Villota, and Renata Sarabuno.cralawlibrary

Accordingly, the July 13, 2011 Decision is hereby MODIFIED in that the aforementioned nine (9) workers are entitled to be reinstated and granted backwages with interest at the rate of six percent (6%) per annum which shall be increased to twelve percent (12%) after the finality or this judgment.cralawlibrary

SO ORDERED.

Sereno, C.J., Carpio, Velasco, Jr., (Chairperson), and Abad, JJ., concur.cralawlibrary

Endnotes:

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¹ςrνl1 Rollo (G.R. No. 160138). p. 253.cralawlibrary

²ςrνl1 Id. at 245.cralawlibrary

³ςrνl1 Rollo (G.R. No. 160138), pp. 121-126; (G.R. No. 160192), pp. 115-120.cralawlibrary

⁴ςrνl1 Rollo (G.R. No. 160138), pp. 121-122.cralawlibrary

⁵ςrνl1 Rollo (G.R. No. 160192), pp. 139-144.cralawlibrary

⁶ςrνl1 Id. at 40-58.cralawlibrary

⁷ςrνl1 Id. at 69-73.cralawlibrary

⁸ςrνl1 Id. at 74-92.cralawlibrary

⁹ςrνl1 Id. at 93-101.cralawlibrary

¹⁰ςrνl1 Id. at 102-114.cralawlibrary

¹¹ςrνl1 Id. at 109.cralawlibrary

¹²ςrνl1 Id. at 123-145.cralawlibrary

¹³ςrνl1 Id. at 139.cralawlibrary

¹⁴ςrνl1 Id. at 24-32..cralawlibrary

¹⁵ςrνl1 Id. at 33-34.cralawlibrary

¹⁶ςrνl1 Id. at 237-259.cralawlibrary

¹⁷ςrνl1 Id. at 260-266.cralawlibrary

¹⁸ςrνl1 Rollo (G.R. No. 160138), pp. 263-268.cralawlibrary

¹⁹ςrνl1 Rollo (G.R. No. 160192), pp. 116-117.cralawlibrary

²¹ςrνl1 Session Delights Ice Cream and Fast Foods v. CA, G.R. No. 172149, February 8, 2010, 612 SCRA 10, 24.cralawlibrary

²²ςrνl1 CA Amended Decision, rollo (G.R. No. 160138), p. 50.