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435
435
436
436
can validly reduce the regular number of working days. The said
bulletin states that a reduction of the number of regular working
days is valid where the arrangement is resorted to by the employer
to prevent serious losses due to causes beyond his control, such as
when there is a substantial slump in the demand for his goods or
services or when there is lack of raw materials.
Same; Same; Permitting reduction of work and pay at the
slightest indication of losses would be contrary to the States policy
to afford protection to labor and provide full employment.A close
examination of petitioners financial reports for 1997-1998 shows
that, while the company suffered a loss of P3,645,422.00 in 1997, it
retained a considerable amount of earnings and operating income.
Clearly then, while Linton suffered from losses for that year, there
remained enough earnings to sufficiently sustain its operations. In
business, sustained operations in the black is the ideal but being in
437
437
TINGA, J.:
This is a petition for review under Rule 45 of the Rules
of
1
Civil Procedure seeking the reversal of the Decision of the
Court of Appeals promulgated
on 12 December 2003 as well
2
as its Resolution promulgated on 2 April 2004 denying
petitioners motion for reconsideration.
This case originated from a labor complaint filed before
the National Labor Relations Commission (NLRC) in which
herein respondents contended that petitioner Linton
Commercial Company, Inc. (Linton) had committed illegal
reduc_______________
Rollo, pp. 68-77. Penned by Court of Appeals Justice Romeo A.
Id., at p. 79.
438
438
Id., at p. 13.
CA Records, p. 34.
Rollo, p. 80.
Id., at p. 81.
Id., at p. 82.
Id., at p. 83.
439
439
11
12
13
14
440
16
17
18
19
441
that the caption of the petition did not include the NLRC as
party respondent, which made for another jurisdictional
defect. The rest of its arguments were merely a reiteration of
its arguments before the NLRC.
In reversing
the NLRC, the Court of Appeals, in its
22
Decision dated 12 December 2003 ruled that the failure to
indicate all the names of petitioners in the caption of the
petition was not violative of the Rules of Court because the
records of the case showed that there were sixty-eight (68)
original complainants who filed the complaint before the
Arbitration Branch of the NLRC. The appellate court
likewise considered the quitclaims and release documents as
ready documents which did not change the fact that the 21
workers were impelled to sign the same. The appellate court
gave no credence to the said quitclaims, considering the
economic disadvantage that would be suffered by the
employees. The appellate court also noted that the records
did not show that the 21 workers desisted from pursuing the
petition and that the waivers and
_______________
20
21
22
Supra note 1.
442
442
Id., at p. 72.
24
25
Id., at p. 76.
443
443
27
Id., at p. 79.
28
444
30
304; 310 SCRA 26, 58 (1999) citing Contech Construction Technology &
Development Corp. v. Court of Appeals, 211 SCRA 692, 695-697, 23 July
1992.
31
32
445
34
92067, 22 March 1991, 195 SCRA 567, 573, reiterating Asia Banking
Corporation v. Walter E. Olsen & Co., 48 Phil 529.
35
Rollo, p. 210.
446
446
Commission, G.R. No. 86657, 23 October 1989, 178 SCRA 667, 670.
39
Sps. Ampeloquio, Sr., et al. v. Court of Appeals, 389 Phil. 13; 333
447
448
P3,645,422.00
in 1997, it retained a46considerable amount of
45
earnings and operating income. Clearly then, while
Linton suffered from losses for that year, there remained
enough earnings to sufficiently sustain its operations. In
business, sustained operations in the black is the ideal but
being in the red is a cruel reality. However, a year of
financial losses would not warrant the immolation of the
welfare of the employees, which in this case was done
through a reduced workweek that resulted in an unsettling
diminution of the periodic pay for a protracted period.
Permitting reduction of work and pay at the slightest
indication of losses would be contrary to the States policy
to
47
afford protection to labor and provide full employment.
_______________
42
Rollo, p. 107.
43
Id., at p. 176.
44
45
Id.,
at
p.
128.
Retained
earnings
(beginning)
for
1997:
P6,501,823.17.
47
449
Tanjuan v. Phil. Postal Savings Bank, Inc., 457 Phil. 993, 1009; 411
450
- 12. Benedicto
P16,368.30
Bagan
15,775.50
2. Francisco
Racasa
15,678.00
3. Dante
Escarlan
16,348.80
5. Rodolfo
Olinar
15,990.00
6. Daniel
Custodio
16,302.00
16,302.00
8. B. Pilapil
15,947.10
9. Donato
Bonete
15,561.00
15,990.00
11. Cesar
Ragonon
15,892.50
_______________
cane
Planters
Association,
Inc.
v.
National
Labor
Relations
Commission, 357 Phil. 110, 120; 296 SCRA 108, 119, 25 September 1998.
51
CA Rollo, p. 36.
451
451
- 36. Nestor M.
16,200.60
Bonete
15,705.30
16,458.00
- 38. Alberto
15,678.00
Lagman
16,660.80
- 39. Rolando
15,678.00
Torres
15,678.00
27. Jayoma A.
- 40. Rolindo
15,561.00
Cualquiera
16,068.00
28. Ramon
Olinar III
- 41. Armando
15,678.00
Lima
16,426.80
29. Saturnino C.
- 42. Alfredo
Ebaya
15,919.80
Selapio
16,060.20
30. Nicanor L. de
- 43. Martin V.
Castro
16,614.00
Villacampa
15,939.30
31. Eduardo
Gonzales
16,263.00
32. Isagani
Gonzales
- 45. Dante
16,469.70
Escarlan
15,912.00
33. Thomas
Andrab, Jr.
- 46. M. Durano
15,912.00
16,614.00
34. Minieto
Durano
35. Ernesto
Vallente
15,997.80
16,302.00
52
The special civil action of certiorari being the proper vehicle for
judicial review of decisions of the NLRC: See St. Martin Funeral Home v.
National Labor Relations Commission, 356 Phil. 811; 295 SCRA 494
(1998).
452
452
_______________
54
Supra note 51. Made by the Research and Information Unit of the