Gokongwei v. National Labor Relations Commission

BELLOSILLO, J.:

This petition for certiorari under Rule 65 of the Rules of Court, as amended, assails the 8 July 1994 Decision of public respondent National Labor Relations Commission (NLRC) affirming the Labor Arbiter's decision which held that private respondent Wilfredo M. Baron was constructively dismissed from employment hence should be reinstated and paid his back wages and 13th month pay. It likewise assails the 9 September 1994 Resolution of the NLRC maintaining that private respondent was constructively dismissed. Petitioner Consolidated Food Corporation (CFC) is a domestic corporation engaged in the sale of food products, e.g., Presto Ice Cream, with petitioner John Gokongwei as its President, Victorio V. Fadrilan Jr. as General Manager, and Jaime S. Abalos as Unit Manager for Northern Luzon.

Private respondent Wilfredo M. Baron was a Bonded Merchandiser at CFC since November 1985 and received commendations for being a consistent member of the "millionaires group," a title given to provincial salesmen who filled sales quotas in their assigned areas. in March and December 1989, and February and April 1990, he was given commendations by Gen.

Mgr. Victorio V. Fadrilan Jr. and Unit Mgr. Jaime S. Abalos for his good performance in sales.1 Thereafter, he was assigned as Acting Section Manager for Northern Luzon (NL) - 2 Area covering Baguio City, La Trinidad and Benguet.

He was tasked, among others, to deliver for sale CFC Presto Ice Cream Products to stores and outlets in Baguio City, make inventories thereof, replace or retrieve bad orders or damaged ice cream stocks, and to handle funds in relation to his functions. He received a basic salary of P3,300.00 per month plus commissions averaging monthly at P30,000.00 or one percent (1%) of his sales.2 On 16 July 1990 a killer earthquake hit Baguio City causing severe damage in the area. Power lines were cut off and the roads to and from the city became impassable.

Hence, the Presto ice cream products in the possession of customers and sales outlets in Baguio were damaged and became bad orders. On 1 August 1990 Unit Mgr. Abalos issued an Action Plan for NL-2 Area approved by Gen.

Mgr. Fadrilan Jr. which provided among others the cut-off audit of Sec. Mgr. Wilfredo M. Baron to determine accountabilities that should be liquidated on account of non-sales operations due to fortuitous event, and a plan for the reorganization of the Northern Luzon Sections (NL-1, 3 and 4) to create only one (1) section from the existing outlets.

It was proposed that Baron start with at least fifty (50) freezers to immediately service and develop potential outlets in the assigned area.3 On 15 August 1990 the Field Audit Group of CFC conducted an audit on the accountabilities of Baron that reflected a shortage of P1,985.12 in the cash purchase fund and expense allowance fund. on 8 October 1990 Unit Mgr. Abalos requested a field audit of the area to further evaluate private respondent's exposure, particularly on sales account, freezer and bad orders stocks.4 On 15 October 1990 Unit Mgr.

Abalos issued a Memorandum directing Baron to temporarily stop routing in his assigned areas until such time that the complete audit of the customers' bad orders stocks within the area had been finished. Thereafter, Unit Mgr. Abalos issued another memorandum ordering the turnover of accountabilities of Baron to Branch Mgr.

Josedario Calura, who should take over the route operation of Baguio City effective 15 October 1990 as private respondent's presence would be required in the audit being conducted on bad orders stocks caused by the earthquake.

On 1 December 1990 the Field Audit Group submitted its report declaring that the quantity of bad orders stocks per Bad Orders Summary Sheets (BOSS) prepared by Baron was higher than the total quantity of bad orders stocks per confirmed customers' listings. Some customers claimed through written statements that Baron did not totally dispose of their bad orders stocks but instead loaded some in his truck. They could not, however, recall the quantity of bad orders stocks taken private respondent.

These findings tended to indicate that Baron's funds presented for audit as of 15 August 1990 could have been manipulated to replace good stocks and/or cash with customers' bad orders stocks. the following discrepancies were noted: a. Probable BO stocks returned to warehouse were in excess of truck BO stocks.

Cases Pieces Amount BO initially presented per audit as of August 15, 1990 - covered by BOSS Nos. 24379-80 dated August 1, 1990 642 841 87,202.27 Should be good stocks as of August 15, 1990 that would have turned B.O. and returned to warehouse (See Schedule II) 216 111 22,461.71 Excess BO returned to warehouse