GR 113290; (August, 1995) (Digest)
G.R. Nos. 113290-91, August 3, 1995
Pedro O. Palmeria, Sr. vs. National Labor Relations Commission, Coca-Cola Bottlers Philippines, Inc., and Lipercon Services, Inc.
FACTS
Petitioner Pedro O. Palmeria, Sr. was hired by respondent Coca-Cola Bottlers Philippines, Inc. (CCBPI) in 1977. In 1984, CCBPI entered into a service contract with co-respondent Lipercon Services, Inc., after which petitioner was made to appear as a Lipercon employee. He was dismissed on February 15, 1986. The Executive Labor Arbiter found CCBPI guilty of illegal dismissal, awarding separation pay and backwages computed at his 1986 daily wage of P36.00, but denied reinstatement. The NLRC affirmed, holding reinstatement inappropriate due to the protracted litigation and perceived animosity between the parties, making separation pay the “better, more prudent alternative.”
ISSUE
The primary issue is whether the NLRC committed grave abuse of discretion in denying reinstatement and in using the 1986 wage rate for computing monetary awards.
RULING
Yes, the NLRC gravely abused its discretion. The Supreme Court emphasized that security of tenure is a constitutional guarantee implemented by Article 279 of the Labor Code, which mandates reinstatement and full backwages for an illegally dismissed employee. Reinstatement is the principal relief intended to restore the employee to his former position without loss of seniority rights. The NLRC’s justification for denying reinstatement—based on litigious confrontation and potential animosity—constituted a disregard of this mandatory legal rule. The existence of strained relations is not a blanket justification to avoid reinstatement; it must be substantiated by evidence that such relations are of such severity that reinstatement is no longer viable. The NLRC’s speculative reasoning about filled positions and “torqued perceptions” did not meet this standard.
Regarding the computation of monetary awards, the Court upheld the use of the salary rate at the time of illegal dismissal (P36.00/day). The claim for recomputation based on the current salary of regular CCBPI employees was correctly denied, as backwages are computed from the time compensation was withheld until actual reinstatement based on the rate at the time of dismissal, subject to adjustments for mandated wage increases during the period of litigation. The claim for moral and exemplary damages was also properly denied for lack of evidence that the dismissal was attended by bad faith, fraud, or oppressive conduct.