GR 127598; (January, 1999) (Digest)
G.R. No. 127598 January 27, 1999
Manila Electric Company, petitioner, vs. The Honorable Secretary of Labor Leonardo Quisumbing and Meralco Employees and Workers Association (MEWA), respondents.
FACTS
MERALCO is the employer and MEWA is the duly recognized labor organization of its rank-and-file employees. On September 7, 1995, MEWA informed MERALCO of its intention to re-negotiate the terms of their existing 1992-1997 Collective Bargaining Agreement (CBA) for the remaining two-year period starting December 1, 1995. MERALCO agreed and negotiations commenced. Despite meetings, the parties failed to reach an agreement, resulting in a bargaining deadlock. On April 23, 1996, MEWA filed a Notice of Strike. Conciliation by the National Conciliation and Mediation Board failed. Faced with an imminent strike, MERALCO filed an Urgent Petition on May 2, 1996, praying for the Secretary of Labor to assume jurisdiction over the dispute. The Secretary granted the petition on May 8, 1996, enjoined any acts exacerbating the situation, and directed the submission of position papers. After receiving memoranda, the Secretary of Labor issued an Order on August 19, 1996, resolving the deadlock by awarding specific terms on various economic and non-economic issues for incorporation into a new CBA for the remainder of the 1992-1997 cycle. MERALCO filed a motion for reconsideration, which was denied by the Secretary in an Order dated December 28, 1996. MERALCO then filed the present petition for certiorari.
ISSUE
Whether the Secretary of Labor, in assuming jurisdiction over the labor dispute and issuing the Orders of August 19, 1996 and December 28, 1996, acted with grave abuse of discretion.
RULING
The Supreme Court found no grave abuse of discretion on the part of the Secretary of Labor. The petition was dismissed. The Court held that the Secretary’s assumption of jurisdiction under Article 263(g) of the Labor Code was proper due to the nature of MERALCO’s business, which is imbued with public interest and vital to the national economy. The Secretary’s power to resolve the dispute includes the authority to determine the terms and conditions of employment. The Court found that the Secretary’s awards were based on the evidence and position papers submitted by the parties, considering MERALCO’s financial capacity, the necessity of maintaining industrial peace, and the welfare of the employees. The Court ruled that the Secretary did not act arbitrarily or capriciously in rendering the assailed orders.