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Interphil Laboratories Employees Union FFW et al Vs. Interphil Laboratories, Inc at al

Facts:

Interphil Laboratories Employees Union-FFW is the sole and exclusive bargaining

agent of the rank- and- file employees of Interphil Laboratories, Inc- a companyengaged in the business of manufacturing and packaging pharmaceutical products.

They had a Collective Bargaining Agreement (CBA) effective from August 01, 1990

to July 31, 1993.

Prior to the expiration of the CBA, Allesandro G. Salazar, the Vice President of the

Human Resources Department of the respondent company was approached byNestor Ocampo, the union president and Hernando Clemente. Salazar told theunion officers that the matter could be discussed during formal negotiations.

March 1993- The union officers again approached Salazar. They required once

more about the CBA status and received the same reply from Salazar.

April 1993- Ocampo requested for a meeting to discuss the duration and effectivityof CBA. Salazar however, declared that it would still be premature to discuss thematter and that the company could not make a decision at a moment.

The following day all the rank- and file employees refused to follow their regular shift

work schedule:

o From 6:00 am to 6:00 pm /6:00 pm to 6:00 am

o 2:00 pm to 2:00 am

The employees stopped working and left their workplace without sealing the

containers and securing the raw materials they were working on

To minimize the damage the overtime boycott was causing the company, Salazar

immediately asked for the meeting with the union officers.

Gonzales told Salazar that the employees will return to their normal work schedule if

the company would agree to their demands as to the effectivity and duration of thenew CBA (agreement must be effective for 2 years) .

Again, Salazar told the union officers that the matter could be discussed during

formal negotiations unsatisfied with the answer the employees started to engage ina work slowdown campaign to delay the production of the company.

September 1993- respondent company filed with NLRC a petition to declare illegal

petitioner unions overtime boycott and work slowdown .It amounted toillegal strike.

October 1993, respondent company filed with National Conciliation and Mediation

Board (NCMB) an urgent request for preventive mediation aimed to help the partiesin their CBA negotiations.

January 1994- petitioner union filed with the NCMB a Notice of Strike citing

unfair labor allegedly committed by the respondent company.

February 1994- Secretary of Labor Nieves Confessor issued an order directing

respondent company to

o Immediately accept all striking workers, including the 53 terminated union

officers

o Shop stewards and union members back to work under the same termsand conditions

o To pay all the unpaid accrued year end benefits of its employees.

On the other hand, petitioner union was directed to strictly and immediately comply

with the return-to work order.

September 1995- Secretary Quisumbing approved and adopted the decision of the

Labor Arbiter Caday declaring the overtime boycott and work slowdown as illegalstrike and found out that the respondent company is guilty of unfair labor practice.

Petitioner unions reconsideration and petition for certiorari were denied.

Issue:

1. Whether or not the Secretary of Labor and Employment has a jurisdiction over laborand labor related dispute. YES.

2. Whether or not the 12 working hours violate the right of the employees to just workfor not more than 8 hours a day. NO

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3. Whether or not the overtime boycott or work slowdown by the employeesconstitutes a violation of the CBA which prohibits the union to stage a strike orengage in slowdown or interruption of work. YES

Ratio:

1. In the present case, the Secretary was explicitly granted by Article 263 of the laborCode the authority to assume jurisdiction over a labor dispute causing or likely tocause or lockout in an industry. Necessarily, this authority to assume jurisdictionover the said labor dispute must include and extend to all questions andcontroversies including cases over which the labor arbiter has exclusivejurisdiction.

2. The regular working hours shall consist of not more than eight (8) hours. It shall be7:30 am to 4:30 pm. The schedule of shift work shall be maintained; however, thecompany may change the prevailing work time at i ts discretion, should suchchange be necessary in the operations of the company. All employees shall

observe such rules as have been laid down by the company for the purposeof effecting control over working hours.The Labor Arbiter found out that therespondent company had to adopt a continuous 24-hour work daily schedule byreason of the nature of its business and the demands of its clients.

3. Because there is a contractual commitment that there shall be no strikes, walkouts,stoppage or slowdown of work, boycotts or secondary boycotts x x x or anyinterference with any of the operations of the company during CBA. The workersrefusal to adhere to the work schedule in force is a slowdown and it is inherentlyillegal activity essentially illegal even in the absence of a no-strike clause in a CBA.The court also agrees that such slowdown is generally condemned as inherentlyillicit and unjustifiable because while the employees continue to work and remain at

their positions and accept the wages paid to them. They select what part of theirallotted tasks they care to perform. In other words, they work on their own terms.

Wherefore, the petition is DENIED DUE COURSE.