Inguillo vs. First Phil. Scales, Inc.

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Case Name: Inguillo vs. First Philippine Scales, Inc. (FPSI) By: Tangonan
GR No. 165407 Topic: Union Security Clause
Date: 05 June 2009
FACTS:
The respondent Company employed Bergante and Inguillo as assemblers on August 1977 and September 1986,
respectively.
In 1991, the Union-1 (FPSSILU) entered into a CBA, with a duration for 5 years from 1991 to 1996.
During the lifetime of the Union-1, Begante, Inguillo and other members of the Union-1 joined another union, Union-2
(NLM).
Subsequently, Union-2 filed with the DOLE an intra-union dispute against Union-1 and the company. The MA decided
in favor of Union.
Meanwhile, the Union-1 filed a petition with the company seeking the termination of the services certain employees,
which included Inguillo, on the ground of: (1) disloyalty to the Union by separating from it and affiliating with Union-
2; (2) dereliction of duty by failing to call periodic membership meetings and to give financial reports; (3) depositing
Union funds in the names of Grutas and former Vice-President Yolanda Tapang, instead of in the name of Union-1,
care of the President; (4) causing damage to Union-1 by deliberately slowing down production, preventing the Union
to even attempt to ask for an increase in benefits from the former; and (5) poisoning the minds of the rest of the
members of the Union so that they would be enticed to join the rival union.
On May 1996, Inguillo filed with the NLRC a complaint against the Company for illegal withholding of salary and
damages.
Later, the company terminated the services of the employees mentioned in the petition. The following day, separate
complaints for illegal dismissal were filed by NLM and Inguillo which were consolidated.
The LA dismissed the complaints against those complainants that entered in an amicable settlement.The remaining
complainants were Bergante and Inguillo. In its decision, LA dismissed the complaints and declared that Bergante and
Inguillo were legally dismissed it being that they clearly violated the Union Security Clause of the CBA when they
joined Union-2.
On appeal, NLRC reversed the decision of the LA. Upon MR, the NLRC set aside its decision and held that Bergante
and Inguillo were legally dismissed. CA affirmed. Hence, this petition.
ISSUE/S: W/N the dismissal of Bergante & Inguilla was legal.
RULING: YES
Under the LC, therein provided are several provisions under which an employee may be validly terminated, namely: (a) just
causes under Art. 282; (b) authorized causes under Art. 283; (c) termination due to disease under Art. 284; and (d) termination
by the employee or resignation under Art.285. While the said provisions didnt mention as a ground the enforcement of the
Union Security Clause in the CBA, the dismissal from employment based on the same is recognized and accepted in our
jurisdiction.
In terminating the employment of an employee by enforcing the Union Security Clause, the employer needs only to determine
and prove that: (1) the union security clause is applicable; (2) the union is requesting for the enforcement of the union security
provision in the CBA; and (3) there is sufficient evidence to support the union's decision to expel the employee from the union
or company. Herein, all of the said requisites were complied with. The 1 st was complied with as the said USC was a valid
provision in the CBA.The 2nd was met when Union-1 acted on its prerogative to recommend the dismissal of the members who
failed to maintain their membership with it on the ground of, among others, joining Union-2. Lastly, the 3 rd was complied with
when Union-1 presented evid that Inguillo were its former members; Inguillo was its Sec. of Finance. Thus, it being apparent
that the petitioners herein committed acts of disloyalty to Union-1 when they failed not only to maintain their membership, but
also by disaffiliating from it, their dismissal on the ground of violation of the USC was valid and for cause.
_______________________
Union Security is a generic term, which is applied to and prehends closed shop, union shop, maintenance of membership or any other form of
agreement which imposes upon employees the obligation to acquire or retain union membership as a condition of employment.

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