Inguillo Vs First Phil Scales

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HERMINIGILDO INGUILLO v.

 FIRST PHILIPPINE SCALES, Inc.


[G.R. NO. 165407 June 5, 2009]
THIRD DIVISION PERALTA, J.

FACTS:

First Philippine Scales, Inc. (FPSI), a domestic corporation engaged in the manufacturing of
weighing scales, employed Bergante and Inguillo as assemblers.

FPSI and FPSI Labor Union (FPSILU) entered into a CBA for a period of 5 years. Bergante &
Inguillo , who were members signed the CBA. The provision of CBA requires that all members
to maintain their membership with FPSILU during the lifetime of CBA. Failing to do so, and
for any causes enumerated therein, the Union Directorate and/or FPSILU Executive Council
may recommend to FPSI and employee/union members suspension or dismissal.

During the lifetime of CBA, petitioner and several FPSI employees joined another union
Nagkakaisang Lakas ng Manggagawa (NLM). Respondents terminated the services of
employees upon a “Petisyon” submitted by FPSILU.

The Labor Arbiter held that Bergante & Inguillo were not illegally dismissed. The two clearly
violated the Union Security Clause of the CBA when the joined another union and committed
acts detrimental to the interest of FPSILU and respondents.

The NLRC reversed the decision stating that respondents failed to present evidence to show
that petitioners committed acts inimical to FPSILU’s interest.

Respondents filed Motion for Reconsideration. The NLRC referred the case to Executive Labor Arbiter
and set aside the previous resolution. This time, NLRC held that petitioners were illegally dismissed as
respondents merely put in force the CBA provision on the termination of services of disaffiliating union
members upon the recommendation of the union.

The Court of Appeals dismissed the appeal and the subsequent Motion for Reconsideration.

ISSUE:

Whether the enforcement of the aforesaid Union Security Clause justified herein petitioner’s dismissal
from service.

HELD:

The Supreme Court ruled that the dismissals of petitioners were valid pursuant to the enforcement of
Union Security Clause, however did not comply with requisite procedural due process.

In enforcing the Union Security Clause in the CBA, the Court was upholding the sanctity and
inviolability of contract. But in doing, they cannot override an employee’s right to due process.

The Supreme Court provides the requisites in terminating the employment of an employee by enforcing
the Union Security Clause:
1. The Union Security Clause is applicable;
2. The Union is requesting for the enforcement of the Union Security provision in CBA;
3. There is sufficient evidence to support the union’s decision to expel the employee from the union
or company;

All the requisites have been sufficiently met, but the twin notice rule requirement was not followed. The
petitioners were dismissed by “petisyon” only. Thus, the petitioners were validly dismissed by
enforcement of Union Security Clause, were declared illegally dismissed due to absence of procedural
due process.

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