G.R. No. 237036 , July 08, 2020
Aboitiz Power Renewables, Inc./Tiwi Consolidated Union (APRI-TCU) on behalf of Fe R. Rubio, Ma. Victoria A. Belmes, Eleanore D. Dalde, Ricardo B. Competente, and Vicente A. Mirandilla; APRI-Tiwi Employees Labor Union (APRI-TIELU) on behalf of Virgilio G. Macinas, Roy D. Dacullo, Arnel C. Repotente, and Jaime B. Sarilla; and APRI-Tiwi Geothermal Power Plant Professional/Technical Employees Union-Dialogwu (APRI-TGPPPTEU-D) on behalf of Vener I. Dela Rosa, Arvid G. Muni, Alvin Y. Salonga, Alvin M. Enguero, Ma. Blanca I. Falcon, and Salve V. Lizardo, Petitioners, vs. Aboitiz Power Renewables, Inc., Michael B. Pierce, Atty. Martin John Yasay, Juan Felipe Alfonso, Arnel Sumagui, Wilfredo G. Sarmago, and Roberto L. Urbano, Respondents.

FACTS

Petitioners are three unions representing former employees of respondent Aboitiz Power Renewables, Inc. (APRI), a corporation operating the Tiwi Geothermal Power Plant. On September 16, 2013, APRI informed employees at a town hall meeting of a redundancy program due to declining steam production and the adoption of a new Oracle Enterprise Business Suit system. Affected employees were individually met, given a Notice of Redundancy dated September 20, 2013, and informed their employment would terminate on October 20, 2013. They were made to sign a Release, Waiver and Quitclaim and given an option to sign a letter choosing not to report for work until the effective termination date. They received separation pay (computed as one month basic salary per year of service for May 26, 2009 to May 31, 2011, and 1.5 months per year from June 1, 2011 onward, plus converted unused leaves, pro-rated 13th month pay, salary for September 21 to October 20, 2013, and last pay) and an additional P400,000.00 special assistance. Some employees also tendered voluntary resignations and received similar benefits. The employees filed complaints for illegal dismissal, unfair labor practice (union busting), and other claims, arguing APRI failed to comply with redundancy notice requirements, presented no evidence justifying redundancy, failed to show overmanning or proof of declining steam production, failed to show criteria for selecting employees for redundancy, and that the removal was union busting as it occurred during union negotiations. APRI countered the dismissal was valid due to redundancy, complied with notice requirements, provided separation pay and additional assistance, used fair criteria from a right-sizing study, and acted in good faith, and that resignations were voluntary.

ISSUE

Whether the dismissal of the employees on the ground of redundancy was valid.

RULING

Yes. The Supreme Court affirmed the Court of Appeals and NLRC rulings that the dismissal was valid. The redundancy program was implemented in good faith due to legitimate business reasons: declining steam production and the implementation of a new Oracle system that streamlined operations. APRI complied with legal requirements: it provided written notices to the affected employees and the Department of Labor and Employment at least one month prior to termination, paid separation pay exceeding statutory requirements (including an additional P400,000.00 special assistance), and applied fair and reasonable criteria in selecting positions for redundancy. The claim of unfair labor practice was not substantiated, as the mere timing of the redundancy during union negotiations, without substantial evidence of union busting, is insufficient to establish unfair labor practice. The resignations of some employees were also found to be voluntary.