345 Trans-Asia Shipping Lines v.
CA ISSUE: WON the workers should be allowed to return to their
7 July 2004
FACTS: Trans-Asia Shipping Lines, Inc. is engaged in coastwise
shipping services. The company had 2 unions (rank-and-file and
supervisors union). Both unions filed separate notices of strike with
the NCMB on the ground of ULP. To avert work stoppage, DOLE
Sec. Laguesma certified the dispute to the NLRC for compulsory
arbitration pursuant to Article 263(g) LC and enjoining any strike or
lock-out. Despite this, the unions still went on strike, paralyzing
company operations. The DOLE Sec. thus issued an Order directing
all striking workers "to return to work within 12 hours from receipt
of this Order and for the Company to accept them back under the
same terms and conditions prevailing before the strike."
Of the striking workers, 21 were dismissed by the company for
violating the directive by the DOLE Sec. not to strike. The company
consequently reinstated the 21 employees. Despite the reinstatement,
the company refused to issue the said employees' embarkation orders
to the ship assignments they had prior to the strike. Both unions
manifested their willingness to comply with the "return-to-work"
order, provided the 21 employees would also be allowed back in the
posts they held prior to the strike. The company refused, claiming
that the phrase under the same terms and conditions prevailing
before the strike refers only to salary grade, rank and seniority, but
cannot encompass the usurpation of management's prerogative to
determine where its employees are to be assigned nor to determine
their job assignments
CA: Ruled for the company. The embarkation orders could not issue
based on the DOLE Sec. order as it would constitute undue
interference with management prerogative.
previous work/ship assignments. YES
RATIO: Under Article 263 (g), when the DOLE Sec. assumes
jurisdiction over a labor dispute or certifies the same to the NLRC
for compulsory arbitration, such shall have the effect of
automatically enjoining the intended or impending strike or lockout.
If one had already taken place, all striking workers shall immediately
return to work and the employer shall immediately resume
operations and readmit all workers under the same terms and
conditions prevailing before the strike or lockout. The powers
granted to the DOLE Sec. under Article 263 (g) have been
characterized as an exercise of the police power of the State, with the
aim of promoting public good.
The most obvious of these powers is the automatic enjoining of an
impending strike/lockout or the lifting thereof if one has already
taken place. Assumption of jurisdiction over a labor dispute, or as in
this case the certification of the same to the NLRC for compulsory
arbitration, always co-exists with an order for workers to return to
work immediately and for employers to readmit all workers under
the same terms and conditions prevailing before the strike or lockout.
The CA ruled that the phrase "under the same terms and conditions
prevailing before the strike" could not encompass the usurpation of
management's prerogative to determine where its employees are to
be assigned. Case law recognizes the employer's right to transfer or
assign employees from one area of operation to another. This right,
however, is not absolute but subject to limitations imposed by law.
Article 263 (g) LC constitutes 1 such limitation.
Nature of dispute subject to Art. 263(g)
As earlier opined, Article 263 (g) of the Labor Code has been
enacted pursuant to the police power of the State. Said provision of
law requires that the powers thereunder be exercised only in labor
disputes involving industries indispensable to the national interest.
That respondent's business is of national interest is not disputed. It is
engaged in coastwise shipping services for the transportation of
passengers and cargoes. The maritime industry is indubitably imbued
with national interest. Under the circumstances, the Labor Secretary
correctly intervened in the labor dispute between the parties to this
case by certifying the same to the NLRC for compulsory arbitration
and issuing the Orders pursuant to Article 263(g).

RULING: The petition is GRANTED. The CA decision is SET

ASIDE. The Order of the DOLE Secretary is AFFIRMED.