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BISIG MANGGAGAWA SA TRYCO v. NLRC

FACTS:

The petitioners are employees of Tryco Pharma Corporation (Tryco), a manufacturer of veterinary medicines, and members of Bisig Manggagawa sa Tryco (BMT), the exclusive bargaining representative of the rank-and-file employees. Tryco and the petitioners signed separate Memoranda of Agreement (MOA) implementing a compressed workweek schedule. The MOA specified the regular working hours from Monday to Friday, stating that no overtime pay shall be due for work rendered during those hours. However, if an employee is required to work beyond the specified time, they shall be entitled to overtime pay. In March 1997, Tryco received a letter from the Bureau of Animal Industry regarding the location of their production site. Tryco issued a memorandum directing the petitioners to report to the company's plant site in Bulacan, but the petitioners refused. BMT declared a strike in protest. The petitioners filed complaints against Tryco for illegal dismissal, underpayment of wages, nonpayment of overtime pay, service incentive leave, and refusal to bargain. The Labor Arbiter, NLRC, and CA ruled in favor of Tryco, stating that the transfer order was within management prerogative and did not amount to constructive dismissal or unfair labor practices. The petitioners filed a petition for review.

ISSUES:

    • Whether there was dismissal or illegal dismissal of the individual petitioners.
    • Whether the private respondents committed acts of unfair labor practice.
    • Whether the petitioners are entitled to their money claims, damages, litigation costs, and attorney's fees.

  4. Whether the transfer orders of the petitioners amounts to unfair labor practice

  5. Whether the Memorandum of Agreement (MOA) is enforceable and binding against the petitioners

RULING:

  1. The Supreme Court opined that the transfer orders did not amount to constructive dismissal. The court held that the transfer of employees, when not unreasonable, inconvenient, or prejudicial to the employee and does not involve a demotion in rank or diminution of salaries, benefits, and other privileges, is generally not considered a constructive dismissal. In this case, the transfer orders did not result in a demotion or reduction of salaries, benefits, or privileges, and the inconvenience caused was deemed incidental and not a valid reason to disobey the orders. Therefore, the transfers were within the management prerogative of the employer and did not constitute constructive dismissal. The court also found no evidence to support the claim that the Bureau of Animal Industry conspired with the respondents to effect the transfers.

  2. The transfer of members does not paralyze the union, as the union was not deprived of the petitioners' membership. Furthermore, there was no showing of intention to interfere with the petitioners' right to organize. Thus, the transfer orders do not amount to unfair labor practice.

  3. The MOA is enforceable and binding against the petitioners. The waiver of overtime pay in the MOA is allowable under D.O. No. 21, as long as certain conditions are met to protect the interest of the employees.

PRINCIPLES:

  • Findings of fact of labor officials, supported by substantial evidence, are generally accorded respect and finality.

  • The employer has the right to transfer and reassign employees according to the requirements of the business, as long as it is not unreasonable, inconvenient, or prejudicial to the employee and does not involve a demotion or reduction in salaries, benefits, or privileges.

  • Mere incidental inconvenience or hardship caused by a transfer is not sufficient to claim constructive dismissal.

  • The burden is on the employer to prove that the transfer is for valid and legitimate grounds.

  • Baseless accusations and misrepresentations made by litigants or counsel will not be tolerated.

  • Unfair labor practice refers to acts that violate workers' right to organize. Acts that are unfair, but do not interfere with this right, are not considered unfair labor practices.

  • Waivers of overtime pay are allowed under certain conditions set by the Department of Labor and Employment (DOLE).

  • The terms of a Memorandum of Agreement should be implemented as they are written if there is no room for interpretation.