364 Phil. 402
PURISIMA, J.:
"WHEREFORE, ABOVE PREMISES CONSIDERED, and pursuant to Article 263 (g) of the Labor Code, as amended, this office hereby assumes jurisdiction over the dispute at Phimco Industries, Inc.On July 12, 1995, petitioner brought the present petition; theorizing, that:
Accordingly, all the striking workers, except those who have been handed down termination papers on June 26, 1995, are hereby directed to return to work within twenty-four (24) hours from receipt of this Order and for the Company to accept them back under the same terms and conditions prevailing prior to the strike.
The parties are further ordered to cease and desist from committing any act that will aggravate the situation.
To expedite the resolution of this dispute, the parties are directed to submit their position papers and evidence within ten (10) days from receipt of this Order.
SO ORDERED."[4]
THE HONORABLE ACTING SECRETARY JOSE BRILLANTES ACTED WITH GRAVE ABUSE OF DISCRETION AMOUNTING TO LACK OR EXCESS OF JURISDICTION IN ISSUING THE ASSAILED ORDER.On July 31, 1995, two weeks after the filing of the Petition, the public respondent issued another Order[6] temporarily holding in abeyance the implementation of the questioned Order dated July 7, 1995 for a period of thirty (30) day; directing, as follows:II
THE HONORABLE ACTING SECRETARY JOSE BRILLANTES ACTED WITH GRAVE ABUSE OF DISCRETION AMOUNTING TO LACK OR EXCESS OF JURISDICTION WHEN HE WENT BEYOND THE BASIS FOR ASSUMPTION OF JURISDICTION UNDER ART. 263 OF THE LABOR CODE."[5]
"WHEREFORE, PREMISES CONSIDERED, the implementation of our Order dated 7 July 1995 is hereby temporarily held in abeyance for a period of thirty (30) days effective from receipt thereof pending the private negotiations of the parties for the settlement of their labor dispute. Thereafter, both the Union and the Company are directed to submit to this Office the result of their negotiations for our evaluation and appropriate action.The pivotal issue here is: whether or not the public respondent acted with grave abuse of discretion amounting to lack or excess of jurisdiction in assuming jurisdiction over subject labor dispute.
SO ORDERED."[7]
"(g) When, in his opinion, there exist a labor dispute causing or likely to cause a strike or lockout in an industry indispensable to the national interest, the Secretary of Labor and Employment may assume jurisdiction over the dispute and decide it or certify the same to the Commission for compulsory arbitration x x x.""The Labor Code vests in the Secretary of Labor the discretion to determine what industries are indispensable to the national interest. Accordingly, upon the determination by the Secretary of Labor that such industry is indispensable to the national interest, he will assume jurisdiction over the labor dispute in the said industry."[8] This power, however, is not without any limitation. In upholding the constitutionality of B.P. 130 insofar as it amends Article 264 (g)[9] of the Labor Code, it stressed in the case of Free telephone Workers Union vs. Honorable Minister of Labor and Employment, et al.,[10] the limitation set by the legislature on the power of the Secretary of Labor to assume jurisdiction over a labor dispute, thus:
"Batas Pambansa Blg. 130 cannot be any clearer, the coverage being limited to "strikes or lockouts adversely affecting the national interest."[11]In this case at bar, however, the very admission by the public respondent draws the labor dispute in question out of the ambit of the Secretary's prerogative, to wit:
"While the case at bar appears on its face not to fall within the strict categorization of cases imbued with "national interest", this office believes that the obtaining circumstances warrant the exercise of the powers under Article 263 (g) of the Labor Code, as amended."[12]The private respondent did not even make any effort to touch on the indispensability of the match factory to the national interest. It must have been aware that a match factory, though of value, can scarcely be considered as an industry "indispensable to the national interest" as it cannot be in the same category as "generation and distribution of energy, or those undertaken by banks, hospitals, and export-oriented industries."[13] Yet, the public respondent assumed jurisdiction thereover, ratiocinating as follows:
"For one, the prolonged work disruption has adversely affected not only the protagonists, i.e., the workers and the Company, but also those directly and indirectly dependent upon the unhampered and continued operations of the Company for their means of livelihood and existence. In addition, the entire community where the plant is situated has also been placed in jeopardy. If the dispute at the Company remains unabated, possible loss of employment, not to mention consequent social problems, might result thereby compounding the unemployment problem of the country."It is thus evident from the foregoing that the Secretary's assumption of jurisdiction grounded on the alleged "obtaining circumstances" and not on a determination that the industry involved in the labor dispute is one indispensable to the "national interest", the standard set by the legislature, constitutes grave abuse of discretion amounting to lack of or excess of jurisdiction. To uphold the action of the public respondent under the premises would be stretching too far the power of the Secretary of Labor as every case of a strike or lockout where there are inconveniences in the community, or work disruptions in an industry though not indispensable to the national interest, would then come within the Secretary's power. It would be practically allowing the Secretary of Labor to intervene in any Labor dispute at his pleasure. This is precisely why the law sets and defines the standard: even in the exercise of his power of compulsory arbitration under Article 263 (g) of the Labor Code, the Secretary must follow the law. For "when an overzealous official by-passes the law on the pretext of retaining a laudable objective, the intendment or purpose of the law will lose its meaning as the law itself is disregarded"[15]
Thus we cannot be unmindful of the possible dire consequences that might ensue if the present dispute is allowed to remain unresolved, particularly when an alternative dispute resolution mechanism obtains to dispose of the differences between the parties herein.[14]
"(g) When, in his opinion, there exists a labor dispute causing or likely to cause a strike or lockout in an industry indispensable to the national interest, the Secretary of Labor and Employment may assume jurisdiction over the dispute and decide it or certify the same to the Commission for compulsory arbitration. Such assumption or certification shall have the effect of automatically enjoining the intended or impending strike or lockout as specified in the assumption or certification order. If one has already taken place at the time of assumption or certification, all striking or locked out employees shall immediately return to work and the employer shall immediately resume operations and readmit all workers under the same terms and conditions prevailing before the strike or lockout. The Secretary of Labor and Employment or the Commission may seek the assistance of law enforcement agencies to ensure compliance with this provision as well as with such orders as he may issue to enforce the same.From the text and the tenor of the law, it is clear as daylight that the secretary's assumption of jurisdiction over a labor dispute is meant to be used sparingly and only if the national interest demands it. He, like everyone else, must respect labor's paramount right to stage concerted activities.xxx xxx xxx
"The foregoing notwithstanding, the President of the Philippines shall not be precluded from determining the industries that, in his opinion, are indispensable to the national interest, and from intervening at any time and assuming jurisdiction over any such labor dispute in order to settle or terminate the same."
"The production and publication of telephone directories, which is the principal activity of GTE, can scarcely be described as an industry affecting the national interest. GTE is a publishing firm chiefly dependent on the marketing and sale of advertising space for its not inconsiderable revenues. Its services, while of value, cannot be deemed to be in the same category of such essential activities as 'the generation or distribution of energy' or those undertaken by 'banks, hospitals, and export-oriented industries.' It cannot be regarded as playing as vital a role in communication as other mass media. The small number of employees involved in the dispute, the employer's payment of 'Pl0 million in income tax alone to the Philippine Government,' and the fact that the 'top officers of the union were dismissed during the conciliation process,' obviously do not suffice to make the dispute in the case at bar one 'adversely affecting the national interest."The Secretary Is Vested with Broad Powers
"xxx If the Court of Industrial Relations is granted authority to find a solution in an industrial dispute and such solution consists in the ordering of employees to return back to work, it cannot be contended that the Court of Industrial Relations does not have the power of jurisdiction to carry that solution into effect. And of what use is its power of conciliation and arbitration if it does not have the power and jurisdiction to carry into effect the solution it has adopted. Lastly, if the Court of Industrial Relations has the power to fix the terms and conditions of employment, it certainly can order the return of the workers with or without backpay as a term or condition of the employment."The most obvious of these powers is the automatic enjoinment of an impending strike or lockout or the lifting thereof if one has already taken place. Assumption of Jurisdiction always coexists with an order for workers to return to work immediately and for employers to readmit all, workers under the same terms and conditions prevailing before the strike or lockout. Defiance of a return-to-,work order produces forfeiture of 'workers' employment.[10] Thus, not only does it diminish the right of labor to strike; it also limits the prerogatives of management to hire workers under its own terms and conditions.[11]
"WHEREAS, Proclamation No. 1081 dated Sept. 21, 1972, was issued by me because of a grave national emergency now prevailing throughout the country which has been brought about by the activities of groups of men now actively engaged in a criminal conspiracy to seize political power and state power in the Philippines in order to take over the Government by force and violence, the extent of which has now assumed the proportion of an actual war against our people and their legitimate Government; andGeneral Order No. 5, which was accompanied by Letter of Instructions No. 368, specifically detailed the vital industries or firms referred to, as follows:
"WHEREAS, in order to restore the tranquility and stability of the nation in the quickest possible manner, it is necessary to prohibit the inhabitants of the country from doing certain acts of undertaking certain activities such as rallies, demonstrations, picketing or strikes in certain vital industries, and other forms of group actions which would cause hysteria or panic among the populace or would incense the people against their legitimate Government, or would generate sympathy for the radical and lawless elements, or would aggravate the already critical political and social turmoil now prevailing throughout the land;
"NOW, THEREFORE, I, Ferdinand E. Marcos, Commander-in-Chief of all the Armed Forces of the Philippines, and pursuant to Proclamation No. 1081 dated Sept. 21, 1972, do hereby order that henceforth and until otherwise ordered by me or by my duly designated representative, all rallies, demonstrations and other forms of group actions by persons within the geographical limits of the Philipppines, including strikes and picketing in vital industries such as in companies engaged in the manufacture or processing as well as in the distribution of fuel gas, gasoline, and fuel or lubricating oil, in companies engaged in the production or processing of essential commodities or products for exports, and in companies engaged in banking of any kind, as well as in hospitals and in schools and colleges, are strictly prohibited and any person violating this order shall forthwith be arrested and taken into custody and held for the duration of the national emergency or until he or she is otherwise ordered released by me or by my duly designated representative."
"For the guidance of workers and employers, some of whom have been led into filing notices of strikes and lockouts even in vital industries, you are hereby instructed to consider the following as vital industries and companies or firms under PD 823 as amended:When Republic Act 6715 took effect and General Order No. 5 was repealed, there was no more listing of industries indispensable to national interest. The labor and employment secretary was given discretion in determining which industries would qualify as such. But the discretion cannot be abused. It is subject to judicial review.
1. Public Utilities:
A. Transportation:
1) All land, air and water companies or firms engaged in passenger, freight or tourist transport;
2) All brokerage, arrastre, warehousing companies or firms;
B. Communications:
1) Wire or wireless telecommunications such as telephone, telegraph, telex, and cable companies or firms;
2) Radio and television companies or firms;
3) Print Media companies;
4) Postal and messengerial service companies;
C. Companies engaged in electric, light, gas, steam and water power generation and
distribution and sanitary service companies;
D. Other Public Utilities:
1) Ice and Refrigeration plants
2. Companies or firms engaged in the manufacture or processing of the following essential
commodities:
A. Animal feeds
B. Cement
C. Chemicals and fertilizers
D. Drugs and medicines
E. Flour
F. Products which are classified as essential commodities in the list of National Economic and Development Authority except the following: rice, corn, some basic cuts of meat, cooking oil, laundry soap, lumber and plywood, galvanized iron sheets, writing pads and notebooks.
G. Iron, steel, copper, tin plates and other basic mineral products;
H. Milk
I. Newsprint
J. Tires
K. Sugar
L. Textile and garments
3. Companies engaged in the production and processing of products for export which are holders of Central Bank or Board of Investment Certificate of Export Orientation, including hotels and restaurants classified as three (3), four (4) or five (5) star by the Department of Tourism;
4. Companies engaged in exploration, development, mining, smelting or refining of coal, oil, iron, copper, gold, and other minerals;
5. Companies or firms engaged in banking, including:
A. Commercial Banks
B. Savings Banks
C. Development Banks
D. Investment Banks
E. Rural Banks
F. Savings and Loans Associations
G. Cooperative Banks
H. Credit Unions
6. Companies or firms which are actualy engaged in government infrastructure projects and in activities covered by Defense contracts;
7. Hospitals as defined in Section 2, Rule 1-A, Book III of the Rules and Regulations Implementing the Labor Code of the Philippines;
8. Schools and Colleges duly recognized by the Government.
The Secretary of Labor may include in/or exclude from the above list any industry, firm, or company as the national interest, national security, or general welfare may require."
"While the case at bar appears on its face not to fall within the strict categorization of cases imbued with 'national interest', this Office believes that obtaining circumstances warrant the exercise of the powers under Article 263 (g) of the Labor Code, as amended.These excuses fail to show how petitioner falls within the category of "industries indispensable to national interest." The allegation of the public respondent that the "match industry like the textile or garment industry may be classified as export-oriented" is sufficiently rebutted by petitioner's simple argument pointing out that its export is very negligible and would not qualify under the definition of "export-oriented industries" in Section 14, Book V, Rule XIII of the Omnibus Rules Implementing the Labor Code.[15] Besides, such allegation does not appear to be supported by the secretary, who in his assailed Order, found that petitioner's business was not an industry indispensable to national interest.
"For one, the prolonged work disruption has adversely affected not only the direct protagonists, i.e., the workers and the Company, but also those directly and indirectly dependent upon the unhampered and continued operations of the Company for their means of livelihood and existence. In addition, the entire community where the plant is situated has also been placed in jeopardy. If the dispute at the Company remains unabated, possible loss of employment, not to mention consequent social problems, might result thereby compounding the unemployment problem of the country.
"Thus, we cannot be unmindful of the possible dire consequences that might ensue if the present dispute is allowed to remain unresolved, particularly when an alternative dispute resolution mechanism obtains to dispose of the differences between the parties herein."