G.R. No. 145428, July 7 2004
Facts of the Case: The petitioner and private respondents were embroiled in a labor dispute which unfortunately resulted to a strike and dismissal of several employees. In order to prevent further damage and halt work stoppage, the Secretary of Labor issued a reinstatement orders instructing the petitioner to readmit the dismissed employees under terms and conditions prevailing before the strikes. The petitioner contended that the subject reinstatement orders constitute a clear encroachment upon management's prerogatives.
Issue: Is the reinstatement order valid?
Ruling: The reinstatement order is valid as it was issued pursuant to Art. 263 of the Philippine Labor Code which empowers the Secretary of Labor to acquire jurisdiction over labor disputes involving an industry inimical to national interest. The maritime industry in which the context of this labor dispute occurs is clearly such and any disruption and work stoppage therein will adversely affect trade, commerce and transportation in the country. This is a clear legal basis for the exercise of the Secretary's power in this case. Moreover, management prerogative is not absolute and Art. 263 provided the limitation to the exercise of this prerogative. Under this provision, the Secretary of Labor is given great breath of discretion to provide solution to a labor dispute of this kind at the soonest. Hence, in this case, management prerogative must therefore give way to promote the general welfare.
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