PHILIPPINE GRAPHIC ARTS INC. v.

NATIONAL LABOR RELATIONS COMMISSION

G.R. No. 80737
September 29, 1988
Gutierrez, Jr., J.

Facts: The petitioner corporation was forced by economic circumstances to require its workers to go on
mandatory vacation leave for periods ranging from 15, 30, to 45 days. The workers were paid while on
leave. The private respondents filed complaints for unfair labor practice and discrimination.

The Labor Arbiter dismissed the complaint. Thereafter, private respondents filed an appeal with the
National Labor Relations Commission (NLRC) which affirmed the arbiter's decision.

Hence this petition

Issue: Whether the forced vacation leave implemented on the employees constitutes an unfair labor
practice?

Held: No. There is basis for the petitioner's contentions: (1) that the reduction of work schedule was
temporary; (2) that it was taken only after notice and consultations with the workers and supervisors;
(3) that a consensus was reached on how to deal with deteriorating economic conditions and reduced
sales and; (4) that the temporary reduction of working days was a more humane solution instead of a
retrenchment and reduction of personnel.

Therefore, the forced leave was enforced neither in a malicious, harsh, oppressive, vindictive nor
wanton manner, or out of malice or spite. As the records show, petitioners instituted the forced leave
due to economic crisis. The decision to resort to forced leaves was, under the circumstances, a
management prerogative.