Echo 2000 Commercial Corporation

ECHO 2000 COMMERCIAL CORPORATION vs. OBRERO FILIPINO-ECHO 2000 CHAPTERCLO, G.R. No.
214092
FACTS: Echo is a provider of warehousing management and delivery services. In 2008, Somido
was made a Warehouse Checker, while Cortes, a Forklift Operator.
In January of 2009, the respondents and their co-workers formed Obrero Pilipino-Echo 2000
Commercial Chapter (Union). Cortes was elected as Vice-President while Somido became an
active member. The respondents claimed that the Union's President, Secretary and one of the
board members were subsequently harassed, discriminated and eventually terminated from
employment by Echo.
7
In May of 2009, Echo received information about shortages in peso value arising from the
movement of products to and from its warehouse. After an immediate audit, Echo suspected that
there was a conspiracy among the employees in the warehouse. Since an uninterrupted
investigation was necessary, Echo, in the exercise of its management prerogative, decided to reassign the staff. The respondents were among those affected.
On July 7, 2009, a memorandum was issued informing the respondents of their transfer to the
Delivery Section, which was within the premises of Echo's warehouse. The transfer would entail
no change in ranks, status and salaries. In response, Somido wrote a letter indicating his refusal
to be promoted as a "Delivery Supervisor." He explained that he was already happy as a
Warehouse Checker. Further, he was not ready to be a Delivery Supervisor since the position was
sensitive and required more expertise and training, which he did not have.
Cortes similarly declined Echo's offer of promotion claiming that he was contented in his post
then as a Forklift Operator. He also alleged that he would be more productive as an employee if
he remained in his post. He also lacked prior supervisory experience.
On July 16, 2009, petitioners, sans consent of the respondents, informed the latter of their
assignments/designations, effective July 17, 2009, as Delivery Supervisors. Echo alleged that the
respondents did not perform the new duties assigned to them. Hence, they were each issued a
memorandum, dated July 16, 2009, requiring them to explain in writing their failure to abide with
the new assignments.
On July 18, 2009, Echo clarified through a memo that the respondents were designated as
"Delivery Coordinators" and not "Supervisors." Thereafter, successive memoranda were issued
by Echo to the respondents, who refused to acknowledge receipt and comply with the directives
therein. The Memoranda dated July 20, 2009 suspended them without pay for five days for their
alleged insubordination. The Memoranda dated August 8, 2009 informed them of their
termination from employment, effective August 15, 2009, by reason of their repeated refusal to
acknowledge receipt of Echo's memoranda and flagrant defiance to assume the duties of
Delivery Coordinators.
LA: LA Hernandez dismissed the respondents' complaint for reasons stated below: (a) the claims
of union-busting, harassment and discrimination were not supported by evidence; (b) no
promotions occurred as the duties of the Delivery Supervisors/Coordinators were merely
reportorial in nature and not indicative of any authority to hire, fire or change the status of other
employees; and (c) Echo properly exercised its management prerogative to order the transfer,
and this was done without intended changes in the ranks, salaries, status or places of
assignment of the respondents.
NLRC: Reversed LAs ruling. NLRC declared petitioners guilty of unfair labor practice and illegal
dismissal of the [respondents]. [The petitioners] are ordered to immediately reinstate [the
respondents] to their previous positions without loss of seniority rights and other
privileges/benefits.
The NLRC explained that at the time of the farmer's dismissal, they had been employed by Echo
for several years since 2002 and 2004, respectively. There were no prior untoward incidents.
However, things changed when the Union was formed. When the two did not agree to be
transferred, they were terminated for insubordination, a mere ploy to lend a semblance of
legality to a pre-conceived management strategy.
CA ffirmed in toto the NLRC's ruling.

ISSUES:
(1) Were respondents illegally suspended and terminated, hence, entitled to payment of
their money claims, damages and attorney's fees?
(2) Echo and its officers are guilty of unfair labor practice?
RULING:
1. YES. The offer of transfer is, in legal contemplation, a promotion, which the respondents
validly refused. Such refusal cannot be the basis for the respondents' dismissal from
service. The finding of unfair labor practice and the award of moral and exemplary
damages do not however follow solely by reason of the dismissal.
An employee is not bound to accept a promotion, which is in the nature of a gift or reward.
Refusal to be promoted is a valid exercise of a right. Such exercise cannot be considered in
law as insubordination, or willful disobedience of a lawful order of the employer, hence, it
cannot be the basis of an employee's dismissal from service.
In the case at bench, a Warehouse Checker and a Forklift Operator are rank-and-file
employees. On the other hand, the job of a Delivery Supervisor/Coordinator requires the
exercise of discretion and judgment from time to time. Specifically, a Delivery
Supervisor/Coordinator assigns teams to man the trucks, oversees the loading of goods,
checks the conditions of the trucks, coordinates with account specialists in the outlets
regarding their delivery concerns, and supervises other personnel about their performance
in the warehouse. A Delivery Supervisor/Coordinator's duties and responsibilities are
apparently not of the same weight as those of a Warehouse Checker or Forklift Operator.
Hence, despite the fact that no salary increases were effected, the assumption of the post
of a Delivery Supervisor/Coordinator should be considered a promotion. The respondents'
refusal to accept the same was therefore valid.
Notwithstanding the illegality of the respondents' dismissal, the Court finds no sufficient
basis to award moral and exemplary damages.
A dismissal may be contrary to law but by itself alone, it does not establish bad faith to
entitle the dismissed employee to moral damages. The award of moral and exemplary
damages cannot be justified solely upon the premise that the employer dismissed his
employee without just or authorized cause.
In the instant case, the right not to accept an offered promotion pertained to each of the
respondents. However, they exhibited disrespectful behavior by their repeated refusal to
receive the memoranda issued by Echo and by their continued presence in their
respective areas without any work output.
2. NO. Unfair labor practices violate the constitutional right of workers and employees to selforganization, are inimical to the legitimate interests of both labor and management,
including their right to bargain collectively and otherwise deal with each other in an
atmosphere of freedom and mutual respect, disrupt industrial peace and hinder the
promotion of healthy and stable labor-management relations.
The respondents allege that their transfer/promotion was intended to deprive the Union of
leadership and membership. They claim that other officers were already dismissed. The
foregoing, however, lacks substantiation. Unfair labor practice is a serious charge, and the
respondents failed to show that the petitioners conclusively interfered with, restrained, or
coerced employees in the exercise of their right to self-organization.

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ECHO 2000 COMMERCIAL CORPORATION vs. OBRERO FILIPINO-ECHO 2000 CHAPTERCLO, G.R. No.

CA ffirmed in toto the NLRC's ruling.

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