G.R. No. 123950 February 27, 1998
GREENHILLS PRODUCTS, INC. and/or JESSIE YU, petitioners, vs. NATIONAL LABOR RELATIONS COMMISSION and BUENAVENTURA F. ABAJO, respondents.

FACTS

Private respondent Buenaventura F. Abajo was employed by petitioner Greenhills Products Inc. (GPI) from August 1985 until his dismissal in September 1988. In June 1988, he was allegedly offered by the company’s Assistant Production/Preparation Manager, Ruben Godornes, to be the president of a union the company intended to organize, which Abajo refused. During the 60-day freedom period from August 14 to October 14, 1988, Abajo actively campaigned for the Association of Labor Union (ALU). On September 3, 1988, he was summoned to the office of company owner Jessie Yu, who directed him to withdraw his ALU membership. Upon his refusal, his services were terminated on grounds that his honesty, sincerity, and loyalty had become suspect. Petitioners contended that Abajo was dismissed for loss of trust and confidence due to alleged missing furniture parts and samples entrusted to him, which were reportedly sold to a certain Roberto Caramelo. The Labor Arbiter initially dismissed the complaint for illegal dismissal and unfair labor practice for lack of merit but ordered payment of indemnity. The NLRC reversed this decision, declaring the dismissal illegal and the petitioners guilty of unfair labor practice, awarding backwages, separation pay, and attorney’s fees.

ISSUE

Whether the dismissal of Buenaventura F. Abajo was illegal and constituted unfair labor practice.

RULING

Yes, the dismissal was illegal and constituted unfair labor practice. The Supreme Court affirmed the NLRC decision, subject to the deletion of the attorney’s fees award. The employer failed to prove just cause for dismissal and disregarded procedural and substantive due process. Abajo was not furnished the required two written notices before termination. The alleged loss of trust and confidence was not supported by substantial evidence; the missing properties were not sufficiently established, and no investigation pinpointed Abajo’s responsibility. The Court found the charges to be a ploy to justify termination due to Abajo’s union activities, noting the dismissal occurred during the freedom period when he was campaigning for ALU. The guidelines for loss of confidence were not met, as it was used as a subterfuge for an unjustified cause. However, the award of attorney’s fees was deleted for lack of legal and factual basis, as the NLRC decision did not state the reasons for such an award in its text.