G.R. No. 206795, September 16, 2019
Foodbev International and Lucila S. Dela Cruz, Petitioners, v. Noli C. Ferrer, Jever Belardo, Felix Galela, Romeo Siscar, Michael Baldesco, Rico Academia, Eduardo Dela Cruz, Ryan Aquino, Gaudencio Pario, Mark Trapago, Mair Gomez, Nagkakaisang Manggagawa ng Foodbev International, Richard Eroles and Bernadette Belardo, Respondents.

FACTS

Petitioner Foodbev International is a partnership providing after-sales support for specialized equipment. Respondents are its rank-and-file employees and members of the Samahan ng Nagkakaisang Manggagawa ng Foodbev International Central, a labor union established on May 31, 2008. Respondent Bernadette Belardo is a managerial employee. After the union’s establishment, Foodbev’s president, Lucila Dela Cruz, threatened to close the company if union activities persisted. Management asked union members to voluntarily resign in exchange for benefits or to submit apology letters. Union members who did not resign were subjected to a difficult written examination; those who failed were considered guilty of violating company rules. Subsequently, several union-member ice cream machine technicians were served a memorandum requiring them to explain an incident involving a cockroach-infested machine they installed, after which they were terminated for gross negligence. The terminated employees, along with other union members, filed complaints for unfair labor practice and illegal dismissal. Following the filing of complaints, respondents received various memoranda for alleged infractions, including absences on the days they filed complaints. Management verbally instructed several respondents to report to Equipment Masters International (EMI), another corporation owned by the Dela Cruz family, and later posted a memo reassigning them. On August 4, 2008, several respondents were placed on preventive suspension. On the same day, Lucila Dela Cruz’s daughters, who were part of management, confronted respondents at the office gate and at a restaurant, hurled invectives, forcibly removed their uniforms, and told them they were no longer needed. Bernadette Belardo was also fired on the same day after being cursed at by management. Multiple complaints for illegal dismissal, unfair labor practice, non-payment of benefits, and claims for damages were filed and eventually consolidated.

ISSUE

The primary issue is whether the respondents were illegally dismissed and whether Foodbev International committed unfair labor practices.

RULING

The Supreme Court ruled that the respondents were illegally dismissed and that Foodbev International committed unfair labor practices. The Court found that the dismissals were not based on just or authorized causes but were motivated by the respondents’ union activities. The series of actions taken by management—including threats of closure, coercive resignation offers, discriminatory examinations, trumped-up charges, punitive transfers, and the hostile confrontations on August 4, 2008—constituted a concerted effort to discourage union membership and activity, in violation of the Labor Code. The Court affirmed the awards for full backwages, separation pay in lieu of reinstatement, moral and exemplary damages, and attorney’s fees. The claim for unpaid salaries during the period of illegal suspension was also granted.