GR L 31276; (September, 1982) (Digest)
G.R. No. L-31276 September 9, 1982
NATIONAL LABOR UNION, petitioner, vs. COURT OF INDUSTRIAL RELATIONS, EVERLASTING MANUFACTURING, ANG WO LONG and BENITO S. ESTANISLAO, respondents.
FACTS
The National Labor Union filed an unfair labor practice charge against Everlasting Manufacturing and its general manager, Benito Estanislao, after the company dismissed 21 union members on July 8, 1963, shortly after concluding a collective bargaining agreement. The complaint alleged the dismissals were a pretext to avoid the CBA and bust the union, with operations continuing using 24 new, non-union workers. Respondent Ang Wo Long, who purchased the business from Estanislao, was later included as a party, claiming no employer-employee relationship existed with the dismissed workers and thus no obligation to honor the prior CBA.
The Court of Industrial Relations initially found both respondents guilty of unfair labor practice and ordered reinstatement with back wages. However, upon motion for reconsideration, the court en banc reopened the case and later issued an order finding only the absent Benito Estanislao guilty and dismissing the case against Ang Wo Long. The union’s motion for reconsideration was denied, prompting this petition for review.
ISSUE
Whether respondent Ang Wo Long should be held jointly and severally liable with Benito Estanislao for unfair labor practice and the consequent payment of back wages to the illegally dismissed employees.
RULING
Yes. The Supreme Court reversed the CIR’s exoneration of Ang Wo Long. The legal logic rests on the principle of successor liability in labor relations and the substantial evidence of Ang Wo Long’s direct participation in the unfair labor practice. The Court found the circumstances—the immediate dismissal of all union members after the CBA, the continuation of the same business operations under the same premises and name using non-union workers, and Ang Wo Long’s role as the new proprietor—inescapably led to the conclusion that the dismissals were intended to break the union and evade the CBA. Since Ang Wo Long continued the business operations and benefited from the illegal act, he cannot escape liability. The Court held him jointly and severally liable with Estanislao. Considering the lapse of time, the Court awarded three years of back wages without qualification. Reinstatement was also ordered, subject to the employees’ certification of physical fitness by a government physician.