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Lichauco, Picazo and Agcaoili For Petitioner. Mauro Rovillos Respondents

The Supreme Court denied the motion for reconsideration filed by Republic Bank regarding a previous decision that found the Bank guilty of unfair labor practices. The Court rejected the Bank's arguments that: 1) It was denied due process because it was found liable under multiple provisions of the Industrial Peace Act instead of just the single provision cited in the complaint. 2) It did not present evidence to prove the employees were not engaged in a protected concerted activity because the complaint did not allege a specific provision. 3) It could not be found to have refused to bargain because the employees did not follow the grievance procedure in their collective agreement, as they were not members of that union. 4) Back wages should be mitigated, which is an issue

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81 views

Lichauco, Picazo and Agcaoili For Petitioner. Mauro Rovillos Respondents

The Supreme Court denied the motion for reconsideration filed by Republic Bank regarding a previous decision that found the Bank guilty of unfair labor practices. The Court rejected the Bank's arguments that: 1) It was denied due process because it was found liable under multiple provisions of the Industrial Peace Act instead of just the single provision cited in the complaint. 2) It did not present evidence to prove the employees were not engaged in a protected concerted activity because the complaint did not allege a specific provision. 3) It could not be found to have refused to bargain because the employees did not follow the grievance procedure in their collective agreement, as they were not members of that union. 4) Back wages should be mitigated, which is an issue

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G.R. No.

L-20303

October 31, 1967

REPUBLIC SAVINGS BANK (now REPUBLIC BANK), petitioner,


vs.
COURT OF INDUSTRIAL RELATIONS, ROSENDO T. RESUELLO, BENJAMIN JARA,
FLORENCIO ALLASAS, DOMINGO B. JOLA, DIOSDADO S. MENDOZA, TEODORO DE LA
CRUZ, NARCISO MACARAEG, and MAURO A. ROVILLOS, respondents.
Lichauco, Picazo and Agcaoili for petitioner.
Mauro Rovillos respondents.
RESOLUTION
CASTRO, J.:
The petitioner Republic Bank has filed a motion for reconsideration of our decision of September 27,
1967.
First. It is argued that as the complaint in this case charges violation of section 4(a) (5) of the
Industrial Peace Act, this Court is without power to find the Bank guilty of violation of any other
provision of section 4(a), and that as it was in fact held liable not only under paragraph (5) but also
under paragraphs (1) and (6) of section 4(a), it was denied its constitutional right to due process.
"The decision has departed from the issue defined in the complaint and answer."
This argument has no merit. The question is whether the Bank committed the act charged in the
complaint. If it did, it is of no consequence, either as a matter of procedure or of substantive law,
what the act is denominated whether as a restraint, interference or coercion, as some members
of the Court believe it to be, or as a discriminatory discharge as other members think it is, or as a
refusal to bargain as some other members view it, or even as a combination of any or all of
these.1 For howsoever it may be characterized, the Bank's conduct in discharging the respondent
employees constituted an unfair labor practice.
In the leading case of National Labor Relations Board v. Mackay Radio & Telegraph Company,2 the
claim was similarly made that the company was found guilty of an unfair labor practice which was
not within the issues upon which the case was tried. According to the company, it was summoned to
answer a complaint that it discriminated by discharging five strikers, and that after all the evidence
was in, the complaint was withdrawn and a new one was filed charging it this time with refusal to reemploy the strikers. But, it was said, when the National Labor Relations Board made its findings it
reverted to the original position that what the company did was not a failure to employ but a wrongful
discharge.
In rejecting the contention, the United States Supreme Court said:
The position is highly technical. All parties to the proceeding knew from the outset that the
thing complained of was discrimination against certain men by reason of their alleged union
activities. . . . The respondent further argues that, when the amended complaint was filed
and the original one withdrawn, the charge it had to meet was a refusal to re-employ; that the
phrase "re-employ" means "employ anew;" that if the Board had found a failure to employ the
five men because of discrimination forbidden by the Act, the findings would have followed the
complaint, whereas the Board, in its conclusions of fact, referred to respondent's action as

"refusal to reinstate to employment" and as a discharge; and the argument is that the
findings do not follow the pleading.
A review of the record shows that at no time during the hearings was there any
misunderstanding as to what was the basis of the Board's complaint. The entire evidence,
pro and con, was directed to the question whether, when the strike failed and the men
desired to come back and were told that the strike would be forgotten and that they might
come back in a body save for eleven men who were singled out for different treatment, six of
whom, however, were treated like everyone else, the respondent did in fact discriminate
against the remaining five because of union activity. While the respondent was entitled to
know the basis of the complaint against it, and to explain its conduct, in an effort to meet that
complaint, we find from the record that it understood the issue and was afforded full
opportunity to justify the action of its officers as innocent rather than discriminatory.3
Second. Still, it is insisted that because the complaint did not allege violation of section 4 (a) (1), the
Bank did not present evidence which, it is claimed, it had all the time to prove that in writing the
letter the respondent employees were not at all engaged in a concerted activity but were merely out
to aid one who at the time was fighting for the control of the Bank. But even if this case were to be
decided strictly on section 4(a) (5) grounds, still the Bank is not excused from its duty to come
forward with the evidence it claims it has, to prove that the respondent employees were not in fact
engaged in a protected activity. For indeed it is now settled that violations of paragraphs (2), (3), (4),
(5), and (6) are also violations of section 4 (a) (1), as section 4 is in fact intended to secure the right
of self-organization, as declared in section 3, to form, join or assist labor organizations to bargain
collectively and to engage in concerted activities for the purpose of collective bargaining and other
mutual aid or protection.4
Third. It is further contended that the Bank could not be found guilty of a refusal to bargain because
the respondent employees, in the first instance, did not follow the grievance procedure outlined in
the collective bargaining agreement with the R.S.B. Employees Union, which called for the creation
of a union committee to take up grievances with the Bank's representative.
The argument is fallacious. It assumes the existence of a specific procedure for the handling of
grievances when the fact is that no specific procedure governs the present case because the
respondent employee do not belong to one union. They are officer of different unions from three
bargaining units in the Bank. As a group they are governed by no collective bargaining with the
Bank. Yet they were engaged in a concerted activity, interference with which is an unfair labor
practice.5
Indeed, the finding of refusal to bargain is based on the Bank's failure to process its own grievance
what it considered was the employees' libel in giving undue publicity to their grievances
through a grievance commitee meeting. As stated in the main decision in this case, not even the
Bank's judgment that the respondent employees committed libel could excuse it from its duty to
bargain collectively, which includes the adjustment of grievances.
Furthermore, even assuming that the respondent employees failed to observe procedure, the Bank
was not thereby justified in unilaterally discharging them. At most such failure could justify the Bank
in ignoring their demand.
Fourth. Finally, invoking the ruling in Philippine Air Lines v. Philippine Air Lines Employees
Association6 the Bank pleads for a mitigation of backwages. Indeed, the amounts which the
respondent employees have or could have earned during the period for which the backwages are
granted should be deducted. With respect to actual earnings, deductions are allowed because of the

law's abhorrence for double compensation, and with respect to money which an employee could
have earned, deductions are founded on the employee's duty to mitigate and diminish his loss.
However, the plea should be addressed to the Court of Industrial Relations when this case is
remanded to it for execution of the judgment. The only issue here is the illegality of the dismissal of
the employees. As this Court explained in the PAL case, the question of deduction becomes relevant
and material only after the dismissal is finally decided to be illegal.
ACCORDINGLY, the motion for reconsideration is denied.
Concepcion, C.J., Reyes, J.B.L., Dizon, Makalintal, Bengzon, J.P., Zaldivar, Sanchez, Angeles and
Fernando, JJ.,concur.

Footnotes
1

Cf . United States v. Lim San, 87 Phil. 273, 278-281.

304 U.S. 333 (1937).

Id. at 349-350.

NLRB v. Express Publishing Co., 312 U.S 426 (1941).

NLRB v. Phoenix Mutual Life Ins. Co., 167 F.2d 983 (7th Circ. 1948).

60 O. G. 8269 (1960).

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