Manila Diamond Hotel Ee Union Vs CA GR 140518

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Manila Diamond Hotel Ee Union vs CA GR 140518

Facts:

The Union filed a petition for a certification election, which was dismissed by the DOLE. Despite the
dismissal of their petition, the Union sent a letter to the Hotel informing the latter  of its desire to
negotiate for a collective bargaining agreement. The Hotel, however, refused to
negotiate with the Union, citing the earlier dismissal of the Union’s petition for certification by DOLE.

Failing to settle the issue, the Union staged a strike against the Hotel. Numerous
confrontations followed, further straining the relationship between the Union and the Hotel. The Hotel
claims that the strike was illegal and dismissed some employees for their participation in the
allegedly illegal concerted activity. The Union, on the other hand, accused the Hotel of illegally
dismissing the workers.

A Petition for Assumption of Jurisdiction under Article 263(g) of the Labor Code was later filed by the
Union before the Secretary of Labor. Thereafter, Secretary of Labor Trajano issued an Order directing
the striking officers and members of the Union to return to work within twenty-four (24) hours and the
Hotel to accept them back under the same terms and conditions prevailing prior to the strike.

After receiving the above order the members of the Union reported for work, but the Hotel refused to
accept them and instead filed a Motion for Reconsideration of the Secretary’s Order.

Acting on the motion for reconsideration, then Acting Secretary of Labor Español modified the  one
earlier issued by Secretary Trajano and instead directed that the strikers be reinstated only in  the
payroll.

Issue:

Whether or not payroll reinstatement is proper in lieu of actual reinstatement under Article 263(g)
of the Labor Code.

Held:

Payroll reinstatement in lieu of actual reinstatement is not sanctioned under the provision of the  said
article.

The Court noted the difference between UST vs. NLRC and the instant case. In UST case the teachers
could not be given back their academic assignments since the order of the Secretary  for them to return
to work was given in the middle of the first semester of the academic year.
The NLRC was, therefore, faced with a situation where the striking teachers were entitled to a  return to
work order, but the university could not immediately reinstate them since it would be  impracticable and
detrimental to the students to change teachers at that point in time.

In the present case, there is no similar compelling reason that called for payroll reinstatement as an
alternative remedy. A strained relationship between the striking employees and management is no
reason for payroll reinstatement in lieu of actual reinstatement.

Under Article 263(g), all workers must immediately return to work and all employers must  readmit all of
them under the same terms and conditions prevailing before the strike or lockout.

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