G.R. No. L-2936 December 23, 1949
TIDE WATER ASSOCIATED OIL COMPANY, petitioner, vs. VICTORY EMPLOYEES AND LABORERS’ ASSOCIATION and ARSENIO C. ROLDAN, et al., Judges of Court of Industrial Relations, respondents.

FACTS

Guillermo Bautista, a checker with 18 years of service at Tide Water Associated Oil Company, was dismissed on July 15, 1948, for violating the company’s “first come, first served” delivery rule by switching the delivery order of gasoline between two customers. The Victory Employees and Laborers’ Association filed a petition for his reinstatement in the pending dispute before the Court of Industrial Relations (CIR). The CIR ordered Bautista’s reinstatement without back pay, considering the punishment excessive. The company appealed, arguing the dismissal was justified under Article 300 of the Code of Commerce for breach of trust.

ISSUE

Whether the CIR gravely abused its discretion in ordering the reinstatement of Bautista by reducing the penalty of dismissal imposed by the company.

RULING

No. The Supreme Court affirmed the CIR’s order. The CIR has the recognized power to correct excessive punishments in labor cases. The Court found no grave abuse of discretion, as the CIR’s findings showed Bautista’s violation was not a breach of trust. The rule had been relaxed before with management instruction, his immediate superior had knowledge and tacitly acquiesced, and Bautista had a long service record with no prior infractions. The penalty of dismissal was deemed too harsh under these circumstances, and reinstatement without back pay was appropriate.

AI Generated by Armztrong.