SMC v NLRC

FACTS: San Miguel Corporation (SMC), which allegedly needed to trea!line it

operation due to "nancial loe hut down o!e o# it plant and declared $$
poition a redundant% Cone&uently, the private repondent union (SMC'()
"led everal grievance cae #or the aid retrenched e!ployee, praying #or the
redeploy!ent o# the aid e!ployee to the other diviion o# the co!pany%
)uring the grievance proceeding, however, !ot o# the e!ployee were
redeployed, while other accepted early retire!ent% A a reult, only *+
e!ployee re!ained when the partie proceeded to the third level o# the
grievance procedure% The private repondent "led with the National Conciliation
and Mediation ,oard (NCM,) o# the )epart!ent o# La-or and '!ploy!ent
().L') a notice o# tri/e% 0etitioner, on the other hand, !oved to di!i the
notice o# tri/e, -ut the NCM, #ailed to act on the !otion% 0etitioner SMC "led a
co!plaint with the repondent NLRC praying #or the di!ial o# the notice o#
tri/e, and an order co!pelling the repondent union to u-!it to grievance and
ar-itration the iue lited in the notice o# tri/e, and the recovery o# the
e1pene o# litigation% Repondent NLRC ca!e out with a !inute reolution
di!iing the co!plaint% Aggrieved -y the reolution, petitioner #ound it way
to thi Court via the preent petition%
2n the cae under conideration, the ground relied upon -y the private
repondent union are non3tri/ea-le% Their ground appear !ore illuory than
real% The Court held that the violation o# the C,A i chargea-le againt the
private repondent union% The Supre!e Court granted the intant petition%
SMC'(30T45. wa directed to co!plete the third level o# the 4rievance
0rocedure and proceed with the Ar-itration proceeding i# neceary%
2SS(': 5.N T6'R' 2S A 72.LAT2.N .F A N. STR28' CLA(S'%
6'L): Collective ,argaining )eadloc/ i de"ned a 9the ituation -etween the
la-or and the !anage!ent o# the co!pany where there i #ailure in the
collective -argaining negotiation reulting in a tale!ate%: The ituation i non3
e1itent in the preent cae ince there i a ,oard aigned on the third level
(Step ;) o# the grievance !achinery to reolve the con<icting view o# the
partie% 2ntead o# a/ing the conciliation decide the con<ict, petitioner declared
a deadloc/, and therea#ter, "led a notice o# tri/e% For #ailing to e1haut all the
tep in the grievance !achinery and ar-itration proceeding provided in the
Collective ,argaining Agree!ent, the notice o# tri/e hould have -een
di!ied -y the NLRC and private repondent union ordered to proceed with the
grievance and ar-itration proceeding%
2n a-andoning the grievance proceeding and tu--ornly re#uing to avail o# the
re!edie under the C,A, private repondent(union) violated the !andatory
proviion o# the C,A%
0etitioner (e!ployer) having evinced it willingne to negotiate the #ate o# the
re!aining e!ployee a=ected , there i no ground to utain the notice o# tri/e
o# the union%
56'R'F.R', the intant petition i here-y 4RANT')% 0etitioner San Miguel
Corporation and private repondent San Miguel Corporation '!ployee (nion 3
0T45. are here-y directed to co!plete the third level (Step ;) o# the 4rievance
0rocedure and proceed with the Ar-itration proceeding i# neceary%