Philippines Inter-Fashion, Inc. vs National Labor Relations Commission

G.R. No. L-59847 – 203 Phil. 23 – 117 SCRA 659 – Labor Law – Labor Relations – Illegal Strike – Backwages

In January 1980, the Philippines Inter-Fashion, Inc. decided to retrench 40 employees due to alleged lack of available work for employees. As a result, the labor union therein, the Philippine Inter-Fashion Workers Union (affiliated with the National Federation of Labor Unions {NAFLU}), staged a strike.

Philippines Inter-Fashion then filed a case of illegal strike against said employees.

In February 1980, the employees obtained a return to work order from the Minister of Labor. But instead of being accepted back to work, Philippines Inter-Fashion locked them out. As a result, the union filed a case of illegal lockout against Philippines Inter-Fashion.

In October 1980, 150 employees offered to voluntarily leave the strike and return back to work. They were admitted back by Philippines Inter-Fashion. This leaves 114 employees still on strike.

Consequently, Philippines Inter-Fashion dropped its case of illegal strike against the 150 employees it re-admitted. However, it continued its case against the remaining 114 strikers.

Eventually, the National Labor Relations Commission (NLRC) ruled that Philippines Inter-Fashion should re-admit the 114 remaining strikers and pay them three-months worth of backwages. The NLRC ruled that since Philippines Inter-Fashion re-admitted the 150 striking employees, it had, in effect, condoned the illegal strike committed by the remaining strikers.

ISSUE: Whether or not the re-admission of some strikers in an illegal strike operates as a condonation of the illegal strike as a whole.

HELD: No. There is only condonation insofar as the admitted employees are concerned or in this case, the 150 employees which were re-admitted by Philippines Inter-Fashion after said employees voluntarily offered to leave the strike.

In this case, it was not disputed that the strike by the union was illegal (not clear in the facts as to why it was illegal – it could be because there was no permit or that they continued to strike despite the return to work order). The 150 employees offered to return to work and at the same time withdrew their case of illegal lockout against their employer. On the other hand, Philippines Inter-Fashion unconditionally accepted the offer of the employees, hence this operates as a condonation on its part of the illegal strike done by the said 150 employees.

Such unconditional acceptance by Philippines Inter-Fashion does not include a condonation of the illegal strike which the remaining 114 employees continued to take part in at that time.

However, since Philippines Inter-Fashion and the union are in pari delicto (both at fault), the status quo prior to the illegal strike and illegal lockout must be sustained. Here, there was also a finding that Philippines Inter-Fashion engaged in illegal lockout. Hence, the other 114 employees must be reinstated but they are not entitled to backwages under the general rule that strikers are not entitled to their salary (save in some instances not present in this case) and under the principle of “no work, no pay.”

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