GR 75704; (July, 1989) (Digest)
G.R. No. 75704 July 19, 1989
RUBBERWORLD (PHILS.), INC. and ELPIDIO HIDALGO, petitioners, vs. THE NATIONAL LABOR RELATIONS COMMISSION (THIRD DIVISION) and NESTOR MALABANAN, respondents.
FACTS
Petitioner Rubberworld (Phils.), Inc. employed respondent Nestor Malabanan in 1978, promoting him to production scheduler in 1980. In 1983, he was transferred to the Inventory Control Section as a stock clerk. In April 1984, a financial audit revealed significant discrepancies between the actual year-end inventory and the stock card records. An investigation by the section head, Noel Santiago, followed, which recommended Malabanan’s dismissal for gross neglect. The Human Resources Division conducted a reinvestigation and affirmed this recommendation, leading to Malabanan’s termination on June 6, 1984.
Malabanan filed a complaint for illegal dismissal and unfair labor practice, alleging his dismissal was due to his union membership and activities. The Labor Arbiter dismissed the complaint for lack of merit, finding insufficient proof of union membership or unfair labor practice. The National Labor Relations Commission (NLRC) reversed this decision on appeal, ordering Malabanan’s reinstatement with full backwages. The company filed this petition for certiorari, arguing the NLRC committed grave abuse of discretion.
ISSUE
The issues are: (1) whether Malabanan’s dismissal constituted unfair labor practice, and (2) whether a just and valid cause existed for his dismissal.
RULING
The Supreme Court dismissed the petition but modified the NLRC’s award. On the first issue, the Court upheld the Labor Arbiter’s finding that no unfair labor practice was committed. The allegation of dismissal due to union activity is a question of fact requiring substantial evidence. Malabanan failed to provide adequate proof of his union membership or the union’s existence, and no union support was evident in the proceedings. Thus, the employer did not interfere with the right to self-organization.
On the second issue, the Court found no valid cause for dismissal. The alleged gross neglect was not substantiated as a dismissible offense. The audit discrepancies, even if attributable to Malabanan, constituted a first infraction not amounting to willful neglect or serious damage justifying termination. His prior promotion indicated satisfactory performance. The penalty of dismissal was disproportionate and unduly harsh. Management’s prerogative must be exercised without abuse of discretion, considering the worker’s livelihood. The law regards labor with compassion, and a less punitive penalty should suffice where the misstep is not severe. Consequently, while the dismissal was illegal, reinstatement was ordered to the position of stock clerk, not production scheduler, with three years of backwages.