RBAEU v. National Labor Relations Commission

PURISIMA, J.:

Before The Court is a Petition for Certiorari under Rule 65 of the Revised Rules of Court to nullify and set aside the Resolution of the National Labor Relations Commission, dated January 31, 1991, and the subsequent Resolution of March 26, 1991 denying petitioner's motion for reconsideration, for being tainted with grave abuse of discretion amounting to lack or excess of jurisdiction. The assailed Resolutions set aside the consolidated decision of Labor Arbiter Ricardo N. Olairez and remanded the cases to the Regional Arbitration Branch of origin for further proceedings. The Petition stems from three cases originally instituted before Sub-Regional Arbitration Branch No. 1 of the National Labor Relations Commission in Dagupan City.

The first case, NLRC Case No. 01-03-7-0049-89, was commenced by the herein petitioner, Ismael Tamayo, Sr., against Rural Bank of Alaminos, Inc. (RBAI) for illegal dismissal and damages. The second case, docketed as NLRC Case No. 01-04-7-0059-89, was filed by the herein private respondent, Rural Bank of Alaminos, Inc., against the Rural Bank of Alaminos Employees Union for unfair labor practice, declaration of illegality of strike and damages. While the third case, docketed as NLRC Case No. 01-06-0097-89, was filed by the Employees Union against the Bank, charging the latter with unfair labor practice and damages.1âwphi1.nêt As gathered by the respondent National Labor Relations Commission, the facts of the controversy litigated upon are as follows: With the appointment of one Benefredo Quinto to the position of internal auditor, which position he had held since January 1, 1976, Ismael P. Tamayo, Sr., who had been with Rural Bank of Alaminos, Inc. (RBAI for brevity) since it started operations in September of 1956, feeling shortchanged, filed on June 3, 1988 a complaint aginst RBAI for illegal dismissal.

In an effort to buy peace, that is, to settle the case amicably, RBAI agreed on a compromise agreement dated July 13, 1988 to reinstate Ismael P. Tamayo, Sr. to the position of internal auditor. Claiming that his services were not actually needed, RBAI terminated effective January 1, 1989 Ismael P. Tamayo, Sr.'s services. This led to the filing on March 27, 1989 of a complaint for illegal dismissal by Ismael P. Tamayo, Sr. against Rural Bank of Alaminos, Inc. docketed as NLRC Case No. SUB-RAB-01-03-7-0049-89.

Subsequent to its certification on December 12, 1989 as the sole bargaining agent of the employees of RBAI, the Rural Bank of Alaminos Employees Union (hereinafter called the Union) submitted sometime in February 1989 proposals with respect to salary/wage increases. RBAI's counter-proposals not (sic) acceptable to it, the Union, which had earlier filed a notice of strike on March 3, 1989, went on strike on April 3, 1989. Its position being that the strike staged by the Union is illegal and in violation of Article 248 (e) of the Labor Code, RBAI instituted a petition for the declaration of the strike as illegal and for actual damages it incurred by way of loss of earnings to the tune of P30,000.00 per day.

This petition was docketed as NLRC CASE NO. SUB-RAB-01-04-7-0059-89. The Union, assailing the alleged constructive dismissal of its members brought about or resulting from the strike, lodged against RBAI a complaint for unfair labor practice with prayer for moral and exemplary damages.

This complaint has been docketed as NLRC CASE NO. SUB-RAB-01-06-7-0097-89. The identity of the parties led the Labor Arbiter, Ricardo N. Olairez, to consolidate the three (3) aforementioned cases.

On December 14, 1989, Labor Arbiter Ricardo N. Olairez rendered a consolidated decision. With respect to Ismael P.

Tamayo's complaint for illegal dismissal against RBAI, the Labor Arbiter held that complainant, whose nature of work, that of internal auditor, was usually necessary and desirable in the business engaged in by the respondent, was a regular employee whose summary discharge from the service effective January 1, 1989, was illegal. The dismissal being illegal, complainant should have ordinarily been reinstated to his former position. However, the Labor Arbiter, finding the complainant to have reached the retirable age, opted instead to award the latter the following amounts, to wit: P63,442.56 representing full backwages/benefits; P29,822.80 as retirement pay; and P9,326.53 as attorney's fees, or a grand total of P102,591.89 plus one (1) percent interest per month until actually paid.

Regarding the bank's petition, NLRC Case No. SUB-RAB-01-04-7-0059-89, the Labor Arbiter disposed of the same by holding that the strike staged by the Union was legal and not in violation of any provision of the Labor Code. Hence, the dismissal of the petition. In the third case, NLRC CASE NO.

SUB-RAB-01-06-0097-89, the Labor Abriter held the bank accountable for the full backwages and other benefits due the Union members who he found to have been constructively dismissed during the strike. Moreover, the Labor Arbiter, on the Union's claim for damages of not less than P200,000.00, ruled that the award of P10,000.00 moral damages and P5,000.00 exemplary damages to each of the union member is in order. The Labor Arbiter disposed thus:

WHEREFORE, with all the foregoing considerations, judgment is hereby rendered as follows: 1. In the first case, we find complainant Ismael Tamayo, Sr. illegally and unjustly dismissed and we hereby order the respondent Rural Bank of Alaminos, Inc. to pay him as follows: P 63,442.56 - Total full backwages /benefits 29,822.80