FACTS:

This case involves a labor dispute between petitioner National Union of Workers in Hotels, Restaurants and Allied Industries (NUWHRAIN)- The Peninsula Manila Chapter (the Junta) and the NUWHRAIN - The Peninsula Manila Rank and File Chapter (the Union) against private respondent, The Peninsula Manila (the Hotel). The Union, representing approximately 800 employees of the Hotel, entered into a collective bargaining agreement (CBA) with the Hotel on December 15, 1991. However, the signing of the CBA was alleged to be tainted with irregularities, prompting the Union to file a notice of strike on the ground of a CBA deadlock. The Union claimed that the CBA was signed by its officers without consulting the general membership of the local chapter.

Subsequently, a faction of the Union conducted an impeachment proceeding and removed the incumbent officers headed by Rudolpho Genato. This faction proclaimed itself as the Interim Union Junta (the Junta). The Junta requested the Hotel to conduct a special election of officers, but the Union's national office disallowed it, alleging that the Junta was constituted illegally. Nonetheless, the Junta conducted the election and elected Melvin Cowan as their leader, but the Union's national office and the Hotel refused to recognize this new set of officers.

The Junta filed a notice of strike on August 10, 1993, citing unfair labor practices by the Hotel. However, the notice was dismissed by the National Conciliation and Mediation Board (NCMB) on the ground that it involved intra-union disputes, which fell under the jurisdiction of the appropriate office of the Department of Labor and Employment (DOLE). Despite the dismissal, the Junta filed a second notice of strike on September 9, 1993. This notice was also dismissed by the NCMB.

The Junta staged a wildcat strike on October 13 and 14, 1993, involving 15 officers and 153 members. The strike disrupted the operations of the Hotel. The Department of Labor and Employment (DOLE) Secretary certified the labor dispute to the National Labor Relations Commission (NLRC) for compulsory arbitration. Meanwhile, the med-arbiter issued an order declaring the Junta illegal and recognizing the incumbency of the Genato group. The Hotel then filed a petition in the NLRC to declare the wildcat strike illegal and dismiss the employees involved in the strike. The 15 officers of the Junta were subsequently dismissed for union disloyalty.

ISSUES:

1. Whether the strike held by the petitioners on October 13 and 14, 1993, was illegal.

2. Whether the dismissal of the 15 officers who participated in the strike was valid.

RULING:

1. The strike was declared illegal. The Supreme Court ruled that the circumstances did not warrant a belief in good faith that the Hotel committed acts of unfair labor practice (ULP) to justify the strike. The alleged ULP acts and grounds for the strike were found invalid, and the strike was held in defiance of a prohibition to strike issued by the National Conciliation and Mediation Board (NCMB).

2. The dismissal of the 15 officers was upheld as valid. The Court agreed that the employer could lawfully discharge employees for participating in an unjustifiable wildcat strike, which was an attempt to undermine the Union's position as the exclusive bargaining representative.

PRINCIPLES:

• A strike based on a "non-strikeable" ground is an illegal strike; a strike grounded on ULP is illegal if no such acts actually exist.

• Even if no ULP acts are committed, if employees believe in good faith that ULP acts exist and the circumstances warrant such belief, the resulting strike may be legal. However, the circumstances must support the belief.

• Mere claims of good faith are insufficient without circumstances warranting such belief.

• Employers can lawfully discharge employees for participating in an unjustifiable wildcat strike.

• Findings of fact by the NLRC are conclusive unless grave abuse of discretion is shown.

• A dissenting opinion is not binding as it represents the individual view of the dissenting commissioner.