Galang v. Boie Takeda Chemicals

JARDELEZA, J.:

This is a petition for review on certiorari1under Rule 45 of the Revised Rules of Court filed by Ernesto M. Galang and Ma. Olga Jasmin Chan (petitioners) from the Court of Appeals' (CA) Decision2 dated February 26, 2008 (CA Decision) and the Resolution3 dated July 28, 2008 (collectively, Assailed Decision) in CA-G.R. SP No. 96861. In the Assailed Decision, the CA affirmed the National Labor Relations Commission (NLRC) Decision4 dated March 7, 2006 reversing the Labor Arbiter's ruling that petitioners were illegally dismissed, viz: WHEREFORE, premises considered, the instant Petition is hereby DENIED.

Accordingly, the assailed March 7, 2006 Decision of the NLRC as well as the October 25, 2006 Resolution denying Petitioners' Motion for Reconsideration are AFFIRMED. SO ORDERED.5(Emphases in the original.) Statement of Facts Respondent pharmaceutical company Boie Takeda Chemicals, Inc. (BTCI) hired petitioners Ernesto Galang and Ma. Olga Jasmin Chan in August 28, 1975 and July 20, 1983, respectively.6 Through the years, petitioners rose from the ranks and were promoted to Regional Sales Managers in 2000.

Petitioners held these positions until their separation from BTCI on May 1, 2004.7 As Regional Sales Managers, they belong to the sales department of BTCI. They primarily managed regional sales budget and target, and were responsible for market share and company growth within their respective regions. Within the organizational hierarchy, they reported to the National Sales Director.8 In 2002, when the National Sales Director position became vacant (after the retirement of Melchor Barretto), petitioners assumed and shared (with the general manager) the functions and responsibilities of this higher position, and reported directly to the General Manager.9 In February 2003, the new General Manager, Kazuhiko Nomura (Nomura), asked petitioners to apply for the position of National Sales Director.10 Simultaneously, Nomura also asked Edwin Villanueva (Villanueva) and Mimi Escarte, both Group Product Managers in the marketing depatiment, to apply for the position of Marketing Director.

All four employees submitted themselves to interviews with the management. In the end, Nomura hired an outsider from Novartis Company as Marketing Director, while the position of National Sales Director remained vacant.11 Later, however, petitioners were informed that BTCI promoted Villanueva as National Sales Director effective May 1,2004.12 BTCI explained that the appointment was pursuant to its management prerogative, and that it arrived at such decision only "after careful assessment of the situation, the needs of the position and the qualifications of the respective candidates."13 The promotion of Villanueva as the National Sales Director caused ill-feelings on petitioners' part.14 They believed that Villanueva did not apply for the position; has only three years of experience in sales; and was reportedly responsible for losses in the marketing depmiment.15 Petitioners further resented Villanueva's appointment because they heard that the appointment was made only because he threatened to leave the office along with the company's top cardio-medical doctors.16 After Villanueva's promotion, petitioners claimed that Nomura threatened to dismiss them from office if they failed to perform well under the newly appointed National Sales Director.17 This prompted petitioners to inquire if they could avail of early retirement package due to health reasons.

Specifically, they requested Nomura if they could avail of the early retirement package of 150% plus 120% of monthly salary for every year of service tax free, and full ownership of service vehicle tax free.18 They claimed that this is the same retirement package given to previous retirees namely, former Regional Sales Director Jose Sarmiento, Jr. (Sarmiento), and former National Sales Director Melchor Barretto.19 Nomura, however, insisted that such retirement package does not exist20 and Sarmiento's case was exceptional since he was just a few years shy from the normal retirement age.21 On April 28, 2004, petitioners intimated their intention to retire in a joint written letter of resignation22 dated April 28, 2002 (sic) to Nomura, effective on April 30, 2004. Thereafter, petitioners received their retirement package and other monetary pay from BTCI. Chan received two checks23 in the total amount of P2, 187,236.6424 computed as follows: 1) Retirement pay (P70,000.00 x 120% x 21years) = P1,764,000.00 2) Salaries from May to December 2004 (P70,000.00 x 8 mos.) = P560,000.00 3) Allowances (from May to December 2004) = P69,328.00 4) Rice Subsidy (April-December) = P6,000.00 5) Conversion of Leave Credits (138 days) = P461,833.00 6) 13th month pay (pro-rata) = P35,000.00