G.R. No. L-7905 July 30, 1955
SAN MIGUEL BREWERY, INC., petitioner, vs. NATIONAL LABOR UNION AND SAMBELA, respondents.

FACTS

On September 17, 1949, the Court of Industrial Relations (CIR) rendered a decision in a labor dispute (Case No. 271-V) between San Miguel Brewery, Inc. and the National Labor Union and Sambela, decreeing that the company should not dismiss, suspend, or transfer employees except for just cause. On April 4, 1950, the company dismissed Macario Borile, a union affiliate. Borile filed a motion in the same CIR case, alleging his dismissal was without just cause and in violation of the 1949 decision, and prayed for reinstatement with backpay. The company opposed, claiming the dismissal was for just cause. On September 11, 1953, the CIR, through Judge V. Jimenez Yanson, granted the motion to reinstate Borile with backpay from April 4, 1950, to August 27, 1952, deducting eight months for two suspension periods, and denied a contempt prayer. The company’s motion for reconsideration was affirmed by the CIR in banc on January 19, 1954, by a vote of 2 to 3 (with two judges dissenting). The company filed the present petition for review.
The company’s dismissal letter to Borile cited four causes: (1) On March 21, 1950, he left the Magnolia compound without permission while on duty, carrying a company pistol outside; (2) On January 24, 1950, he abandoned his post without permission; (3) On December 14, 1949, he conducted himself unbecomingly as a police officer during a scandal involving his two paramours inside the company compound; (4) On September 17, 1949, he made a false report about being on duty when he was actually at the Rizal Memorial Stadium. The CIR found Borile guilty of charges 1, 2, and 3, but considered each offense individually, imposing penalties of suspension (four months for the scandal and four months for taking the pistol outside) and noting a reprimand for abandonment of post, rather than dismissal. The CIR found the evidence for charge 4 insufficient. The company argued that the CIR encroached on its managerial prerogative by not considering the series of offenses as a whole warranting dismissal.

ISSUE

Whether the Court of Industrial Relations erred in ordering the reinstatement of Macario Borile, holding that the series of offenses he committed were not sufficient to constitute just cause for his dismissal.

RULING

The Supreme Court granted the petition and reversed the decision and resolution of the Court of Industrial Relations. The Court held that the CIR erred in not sustaining the company’s dismissal of Borile. Citing Manila Trading & Supply Co. vs. Zulueta, the Court ruled that an employer cannot be compelled to continue employing a person guilty of misfeasance or malfeasance whose continuance is patently inimical to the employer’s interests. The law protects labor but does not authorize oppression or self-destruction of the employer. The Court found that Borile, a member of the security force, was guilty of serious offenses (abandoning his post, taking a company pistol outside without permission, and conduct unbecoming an officer involving a scandal with two paramours) that made him unfit for his position of trust. The company acted within its rights in considering the series of offenses as a whole justifying dismissal. The exception—where dismissal is whimsical or unjustified—was not present. Therefore, the company’s dismissal of Borile was for just cause.