University of Immaculate Concepcion Inc v.

Sec of Labor

Azcuna|Jan 14 2005
Management Prerogative : Exceptions

Facts:
• Collective Bargaining Negotiations. The University and the Union agreed on
collective bargaining proposals but one item was left unresolved: the inclusion to the
union of certain positions in the school (secretaries, registrars, accounting personnel,
guidance counselors) The issue was submitted for voluntary arbitration, but the said
panel ruled to exclude such positions in the union except for the accounting clerks
and other staff members.

• Motion for Reconsideration/Two Notices of Strike. The union then moved for
reconsideration. While the case was pending, they filed a notice of strike over
bargaining deadlock and unfair labor practice. During the 30 day cooling off period,
two union members were dismissed. The union then filed another notice of strike

• Assumption of Jurisdiction by the Secretary of Labor/Decision on the Motion

for Recon. Pursuant to Art 263(g) of the Labor Code, the Secretary assumed
jurisdiction of the dispute. All workers were directed to return to work under the same
conditions and the parties were ordered to desist from committing acts that may
exacerbate the situation. However, the previous motion for reconsideration filed by
the union was denied by the arbitrators. The university furnished copies of the
decision to the concerned employees

• Root of case at bar/Third notice of strike. The University told the employees
they could not retain status as confidential employees if they remained members of
the Union. The employees opposed and remained steadfast in their claim they could
remain as members of the union. They then file a third notice of strike over the
termination of the employees, contending that this was done in violation of the
Secretary of Justice’s orders. The latter issued an order reiterating this.

• Defense/Motions for Reconsideration. The University claimed that the Secretary

of Justice’s orders (reinstatement) would render nugatory the decision of the
voluntary arbitrators (exclusion of concerned employees to the union). However,
their motion was denied on the ground that the decision of the voluntary arbitrators
did not vest the University with the power to terminate the employees. The university
filed 2 more motions for recon, all were denied. However, the last motion modified
the decision ordering the actual reinstatement and instead changed it to payroll
reinstatement.

• Court of Appeals. (Petition for certiorari with the SC was referred to the CA). Affirmed the
Secretary of Labor

Issues:

1. WON the Sec of Labor can take cognizance of an issue involving employees
who are not part of the Union.

Yes. Metrolab Industries v Roldan-Confessor: the court recognizes the exercise of

management prerogative and often declines to interfere with the legitimate business
 decisions of an employer in keeping with Art XIII sec 3 of the Constitution. Exception: PAL
v NLRC. Not absolute and subject to exceptions like when it involves industries
indispensable to the national interest under A 263 LC. The Sec of Labor did not exceed
her jurisdiction when she ordered the suspension of termination. A 263 of the Labor Code
seeks to curb the substantive evil of exacerbating a labor dispute in detriment to the
national interest.

* The issue stopped being that of the employees being members of the union or not, the Court focused on
the duty to prevent/stop acts committed during the pendency of a labor dispute that can give rise to further
contentious issues and increase the tension between the parties. (act of exacerbation)

Held: Decision of the Court of Appeals upheld

1987 Consti. Art XIII. Section 3: (Par 4 : Balancing of Interests)

….. The State shall regulate the relations between workers and employers,
recognizing the right of labor to its just share in the fruits of production and the right of
enterprises to reasonable returns to investments, and to expansion and growth.