JULIE G. CHUA, ELEANOR C. GO
and JOSEPHINE T. LOBENDINO,
                                      Petitioners,

NATIONAL LABOR RELATIONS COMMISSION,
HON. OSWALD B. LORENZO, CHINA AIRLINES,
LTD. and K.Y. CHANG,
                                                          Respondents.
 
 

On October 29, 1986, private respondent K.Y. Chang, then District Manager of Manila Branch Office, sent a Memorandum[4] to Rebecca Veloso, Head of Ticketing Section, informing her that "in order to prevent and arrest further losses, Management has decided to temporarily close its (T)icketing (S)ection." Similar notices were likewise sent to herein petitioners,[5] and to the Department of Labor and Employment[6] [DOLE], notifying them that petitioners "will be temporarily laid-off from employment effective October 30, 1986." Thereafter, China Airlines decided to permanently close said TicketingSection.[7] Thus, on November 5, 1986, it sent the corresponding notices to the petitioners,[8] advising them that their recent lay-off from employment will be considered permanent effective one [1] month from receipt of such notice. A manifestation informing the DOLE of this impending retrenchment was likewise filed on November 11, 1986.[9]

Nearly three years later, or on October 9, 1989, petitioners sued China Airlines and K.Y. Chang before the Labor Arbiter for unfair labor practice and illegal dismissal with claims for reinstatement, backwages, damages, and attorneys fees. The Labor Arbiter dismissed petitioners' charges, declaring that "the retrenchment (was) validly effected."[10] Nevertheless, the Labor Arbiter directed China Airlines to pay petitioners' "retirement and/or separation pay benefits", to wit: [a] Eleanor Go  P372,730.00; [b] Julie Chua  P100,000.00; and [c] Josephine Lobendino  P54,000.00.[11] In addition, the Labor Arbiter also ordered China Airlines to pay attorneys fees to the petitioners in the amount of P52,673.00, or ten [10] percent of the aggregate monetary awards.

Dissatisfied, petitioners appealed to the National Labor Relations Commission (NLRC), which declared that the retrenchment was "validly effected in good faith".[12] Petitioners filed a motion for reconsideration,[13] but the same was denied.[14] Hence, this petition assailing the decision of the NLRC for having been allegedly rendered with grave abuse of discretion.

We note that the instant petition principally questions the findings of the NLRC that China Airlines suffered business losses for six consecutive years from 1980 to 1985.[15] In fact, petitioners argue that China Airlines could not have suffered "serious financial losses" then because, in 1984, the latter even granted a "whooping" 35% salary increased to its Manila Branch Office employees.[16] We are of the opinion, however, that China Airlines' magnanimity in increasing the salary of its employees in one of its several branch offices, does not disprove the fact that it suffered business losses in its worldwide operations. As the NLRC observed:

What else, can the complainants ask to show that the company is losing aside from the closure of the Regional Office for Northeast Asia, in Tokyo, Japan; the reduced personnel in Jeddah Saudi Arabia from thirty [30] to three [3]; Dubai, United Arab Emirates, from ten [10] to two [2]; the Regional Office for the Americas in San Francisco, California and the Regional Office in Europe, were likewise closed; instead, a Paris branch was established with only five [5] employees.[17]

With respect to petitioners' contention that the closure of the Ticketing Section was unwarranted as the Manila Branch Office "has always been making money for China Airlines",[20] suffice it to state that management has the prerogative to choose which department or section of its business is to be closed for economic reasons.[21] And the exercise of such prerogative if done in good faith to advance the employer's interests, as in this case, will always be upheld.[22]

In view of the foregoing, We find no grave abuse of discretion on the part of NLRC in upholding the validity of the retrenchment of the petitioners.

WHEREFORE, the instant petition is hereby DISMISSED and the decision of the NLRC is AFFIRMED in toto.

SO ORDERED.

Narvasa, C.J., Davide, Jr., Melo and Panganiban, JJ., concur.

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Endnotes