G.R. No. L-6158 March 11, 1954
Cebu Portland Cement Company, petitioner, vs. The Court of Industrial Relations (CIR) and Philippine Land-Air-Sea Labor Union (PLASLU), respondents.
FACTS
On December 31, 1948, respondent Philippine Land-Air-Sea Labor Union (PLASLU) filed a petition (CIR Case No. 341-V) with the Court of Industrial Relations against petitioner Cebu Portland Cement Company, submitting grievances and demands for settlement. While this case was pending, on November 20, 1950, PLASLU filed an incidental motion alleging that its member, Felix V. Valencia, the general superintendent of the company, was dismissed without just cause on November 16, 1950, and praying for his reinstatement with back pay. The cement company answered, alleging Valencia was retired along with 100 others to promote economy and efficiency pursuant to an order of the Secretary of Economic Coordination, and questioned PLASLU’s juridical personality and the CIR’s jurisdiction over the incidental case. The CIR rendered a decision ordering Valencia’s reinstatement with full back pay. The cement company’s motion for reconsideration was denied, prompting this certiorari appeal. Valencia was first assistant general superintendent from July 1939, promoted to general superintendent in November 1947, and received a promotional appointment at P12,000 per annum on May 1, 1949. In October 1950, the Secretary of Economic Coordination ordered cost reduction measures. The manager proposed reducing the general superintendent’s salary to P10,800 and recommended Valencia’s retirement “for the good of the service,” with the assistant general superintendent taking his place. The Secretary approved, ordering Valencia’s retirement effective November 16, 1950.
ISSUE
1. Whether the CIR had jurisdiction over the incidental case filed by Valencia, considering PLASLU’s registration status and the nature of the dispute.
2. Whether Valencia, as general superintendent, was an “employee” such that his dismissal constituted an industrial dispute under the CIR’s jurisdiction.
3. Whether Valencia’s separation was justified for reasons of economy and efficiency.
RULING
1. Yes, the CIR had jurisdiction. First, the registration of a labor union under Commonwealth Act No. 103 is not a prerequisite for it to appear and litigate before the CIR. Second, once the CIR acquires jurisdiction over a main case, it retains jurisdiction until the case is completely decided, including all related incidents. The original case (CIR Case No. 341-V) was properly instituted by PLASLU, and the incidental case of Valencia, a member, arose during its pendency, falling under the court’s power to take cognizance of dismissals during proceedings.
2. Yes, Valencia was an “employee” in his relation to the employer, the Cebu Portland Cement Company. While a superintendent with powers to appoint and discharge may be considered part of management in disputes between the union and the company, in his own dispute with the employer regarding his dismissal, wages, or working conditions, he is an employee. His high position in a government enterprise does not change this relation. The case properly falls under the category of an industrial dispute within the CIR’s jurisdiction.
3. No, the separation was not justified. The position of general superintendent was not abolished; only its salary was reduced. The assistant general superintendent’s position was abolished, yet its holder, Ocampo, was promoted to Valencia’s position instead of being retired. Reasons of economy may justify a salary reduction but not Valencia’s separation when his position was retained. No charge of inefficiency was filed against Valencia; the record shows greater production during his incumbency. The recommendation for retirement “for the good of the service” implied undisclosed reasons, but no charges were filed, and Valencia was given no opportunity to defend himself, making the separation illegal. The CIR’s findings of fact and conclusions of law are affirmed. The decision ordering Valencia’s reinstatement with full back pay is affirmed.
