G.R. No. L-16992, December 23, 1961
Atlantic Gulf & Pacific Co. of Manila, Inc., petitioner, vs. Court of Industrial Relations and A.G. & P. Employees & Workers’ Union (PAFLU), respondents.

FACTS

Felipe Mercado, an employee of Atlantic Gulf & Pacific Co. (AG&P) since 1928 and a foreman supervisor, was an active member and auditor of the respondent PAFLU-affiliated union. He participated in union activities, including serving as a watcher in a certification election in July 1958. On October 24, 1958, Mercado attempted to take two brushes and a hammer handle (total value: P3.00) from the company compound, informing the gateman he intended to use them at a cemetery and return them the next day. He left the items with the gateman upon advice to secure a pass. On October 28, 1958, AG&P dismissed Mercado for this alleged theft.
The union filed an unfair labor practice case, contending the dismissal was pretextual and the true cause was Mercado’s union activities. AG&P defended the dismissal as a legitimate response to attempted theft. The Court of Industrial Relations (CIR) found AG&P guilty of unfair labor practice, ordered Mercado’s reinstatement with back wages, and affirmed this decision en banc.

ISSUE

Whether the Court of Industrial Relations committed a grave abuse of discretion in finding that AG&P dismissed Felipe Mercado due to his union activities, thereby committing an unfair labor practice.

RULING

The Supreme Court affirmed the CIR decision, holding no grave abuse of discretion. The ruling is anchored on the CIR’s factual findings, which are conclusive unless unsupported by evidence. The Court found substantial evidence supporting the CIR’s conclusion that the stated cause for dismissal was a mere pretext. Key factors included: Mercado’s 30-year service and admitted efficiency; the disproportionate penalty compared to another employee merely suspended for a more serious theft allegation; the lack of a proper investigation or hearing for Mercado; and, crucially, evidence of anti-union animus. This animus was demonstrated by testimony that AG&P’s shop superintendent had previously labeled the union as communist and compared Mercado to Huk leader Luis Taruc shortly before the dismissal.
The Court rejected AG&P’s argument that Mercado, as a supervisor, could be dismissed for union activity. Under Republic Act No. 875 , supervisors are considered “employees” with the right to self-organization, and discrimination based on union affiliation constitutes unfair labor practice. The petition was denied for lack of merit.