Lapanday vs NLRC
The result of the strike vote was then submitted to the NCMB on
Facts:
Lapanday Agricultural and Development Corporation (LADECO) and Cadeco
Argo Development Phils Inc. are sister companies engaged in the production
of bananas. Their agricultural establishments are located in Davao City. They
agreed to a CBA with Lapanday Workers Union (Union). Said union is the
duly certified bargaining agent of the rank and file employees and is
affiliated with the KMU-ANGLO.
Before the expiration of the CBA, the management policies were initiated by
the sister companies which changed the relationship of the parties.
A labor-management meeting was held on August 2, 1988 where the labor
group represented by its President Arquilao Bacolod, and its legal counsel
raised unfair labor practices such as coercion of employees, intimidation of
the union members and union busting. They agreed to allow its members to
attend the seminar for the rank-and-file employees. But, the Union
directed its members not to attend the seminars and picketed the premises
of the Philippine Eagle Protectors to show their displeasure on the hiring of
the guards.
The Union filed on August 25, 1988, a Notice of Strike with the National
Conciliation and Mediation Board (NCMB) accusing the company of the
same issues raised during the August 2, 1988 labor-management meeting. A
conciliation conference was called for where it was agreed that union
officers would attend the HDIR seminar deleting the discussion on KMU-
ANGLO and guidelines governing the guards would be established.
On September 8, 1988, Danilo Martinez, a member of the Board of Directors
of the Sister companies charged the Union with economic sabotage through
slowdown to which they filed charges against the Union and its members
for illegal strike, unfair labor practice and damages, with prayer for
injunction.
City Mayor Rodrigo Duterte intervened but the dialogues proved fruitless as
sister companies refused to withdraw the cases earlier filed with the Union.
Thereafter, a strike vote was conducted among the members of the Union
and those in favor of the strike won overwhelming support from the
workers.
October 10, 1988. Two days later, or on October 12, 1988, the Union struck.
The gunman was later identified as Eledio Samson, an alleged member of
the new security forces of sister companies. This incident resulted to:
most of the members of the Union refused to report for work
they did not comply with the quota system adopted by the
management to bolster production output
there were allegations that the Union instructed the workers to
reduce their production to thirty per cent (30%).
Tomas Basco and 25 other workers, filed a complaint for unfair labor
practice and illegal suspension against LADECO.
Another complaint for unfair labor practice and illegal dismissal was filed by
the Union, together with Arquilao Bacolod and 58 other complainants.
These cases were heard by Labor Arbiter Newton Sancho.
With the case filed by the sister companies, Labor Arbiter Antonio
Villanueva ruled that the Union staged an illegal strike and declared the
employees listed as respondents in the complaint to have lost their
employment status with Lapanday Agricultural and Development
Corporation and Cadeco Agro Development Philippines, Inc.; and ordered
respondents (petitioners in this case) to desist from further committing an
illegal strike.
Petitioners appealed the Villanueva decision to public respondent NLRC.
Before the NLRC could resolve the appeal on the Villanueva decision, Labor
Arbiter Sancho rendered a decision in the two (2) cases filed by the Union
against private
respondents LADECO and CADECO declaring LADECO and CADECO guilty of
unfair labor practices and illegal dismissal and ordered the reinstatement of
the dismissed employees of private respondents, with backwages and other
benefits. It considered the refusal of the workers to report for work on
September 9, 1988, justified by the circumstance then prevailing which is
the killing of Danilo Martinez on September 8,1988.
NLRC upheld the decision of Labor Arbiter Villanueva. The Union filed its MR
but to no avail. Hence, this petition claiming that NLRC gravely abused its
discretion in: a) declaring that their activities, from September 9, 1988 to
October 12, 1988, were strike activities; and b) declaring that the strike
staged on October 12, 1988 was illegal.
ISSUE: Whether strike staged on October 12, 1988 illegal
HELD: Yes, as it was held within the seven (7) day waiting period provided
for by paragraph (f), Article 263 of the Labor Code, as amended. The haste
in holding the strike prevented the Department of Labor and Employment
from verifying whether it carried the approval of the majority of the union
members. Hence, there was no grave abuse of discretion committed.
employer shall furnish the Ministry the results of the votingat least seven (7)
days before the intended strike or lockout subject to the cooling-off period
herein provided.
Article 264 of the same Code reads:
Art. 264. Prohibited activities. (a) No labor organization or employer shall
declare a strike or lockout without first having bargained collectively in
accordance with Title VII of this Book or without first having filed the notice
required in the preceding Article or without the necessary strike or lockout
vote first having been obtained and reported to the Ministry.

RATIO: The applicable laws are Articles 263 and 264 of the Labor Code, as
amended by E.O. No. 111, dated December 24, 1986.
Paragraphs (c) and (f) of Article 263 of the Labor Code, as amended by E.O.
111, provides:
(c) In cases of bargaining deadlocks, the duly certified or recognized
bargaining agent may file anotice of strike or the employer may file, notice
of lockout with the Ministry at least 30 days before the intended date
thereof. In cases of unfair labor practice, the notice shall be 15 days and in
the absence of a duly certified or recognized bargaining agent, the notice of
strike may be filed by any legitimate labor organization in behalf of its
members. However, in case of dismissal from employment of union officers
duly elected in accordance with the union constitution and by-laws, which
may constitute union busting where the existence of the union is
threatened, the 15-daycooling-off period shall not apply and the union may
take action immediately.
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. . . . Any union officer who knowingly participates in an illegal strike and any
worker or union officer who knowingly participates in the commission of
illegal acts during a strike may be declared to have lost his employment
status: Provided that mere participation of a worker in a lawful strike shall
not constitute sufficient ground for termination of his employment, even if
a replacement had been hired by the employer during such lawful strike.
(emphasis ours).
DISPOSITIVE: The petition is dismissed for failure to show grave abuse of
discretion on the part of the public respondent. Costs against the
petitioners.

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(f) A decision to declare a strike must be approved by a majority of the total

union membership in the bargaining unit concerned, obtained by secret
ballot in meetings or referenda called for that purpose. A decision to declare
a lockout must be approved by a majority of the board of directors of the
corporation or association or of the partners in a partnership, obtained by
secret ballot in a meeting called for that purpose. The decision shall be valid
for the duration of the dispute based on substantially the same grounds
considered when the strike or lockout vote was taken. The Ministry may, at
its own initiative or upon the request of any affected party, supervise the
conduct of secret balloting. In every case, the union or the