Proportionality of penalty in employee dismissal practice question

Pedro Cruz, a mechanic at a private refinery in Cavite, was caught by the company’s security guard attempting to bring home a small bottle of solvent, valued at ₱10, without a gate pass, in violation of a company rule prohibiting removal of company property. Pedro had worked for the company for eight years with no prior record of misconduct. The company dismissed Pedro for serious misconduct and loss of trust and confidence. Pedro argues that dismissal is too harsh a penalty given the minor value of the property and his unblemished record. Should Pedro’s dismissal be upheld? Explain.