ZAMBRANO v.

PHILIPPINE CARPET
Definition of Unfair Labor Practice | 21 June 2017 | J. Mendoza

Nature of Case: Petition for review on certiorari

Digest maker: Africa

FACTS:
Petitioners, who are employees of the respondent Philippine Carpet, filed a
complaint alleging that their dismissal constituted unfair labor practice as it
involved mass dismissal of all the union officers and members.
They further alleged that the cessation of the business due to losses was a mere
pretence to transfer its operations to its wholly-owned controlled corporation
(Phil. Carpet). To support this, they claimed that some of the job orders of
regular clients were transferred to Phil. Carpet, and that several machines were
transferred to the premises of the latter.
LA dismissed the complaint, which was then affirmed by the NLRC and CA, hence this
petition.

ISSUE/S & RATIO:

WON their dismissal constituted unfair labor practice. — NO
Unfair labor practice refers to acts that violate the workers' right to organize.
An employer may only be held liable for unfair labor practice if it can be shown
that his acts affect in whatever manner the right of his employees to self--
organize.
In order to show that employer committed ULP, substantial evidence is required to
support claim. Substantial evidence has been defined as such relevant evidence as a
reasonable mind might accept as adequate to support a conclusion.
In this case, petitioners did not identify the acts of Phil Carpet which, they
claimed, constituted unfair labor practice. They did not even point out the
specific provisions which Phil Carpet violated. As far as the evidence is
concerned, there is no showing that that the closure of the company was an attempt
at union-busting.

RULING: petition is DENIED. The January 8, 2016 Decision and April 11, 2016
Resolution of the Court of Appeals in CAG.R. SP No. 140663, are AFFIRMED in toto.

NOTE:
The Court ruled that the petitioners were terminated for an authorised cause on the
ground of closure of business.
Closure of business is the reversal of fortune of the employer whereby there
complete cessation of business operations and/or an actual lockingup of the doors
of establishment, usually due to financial losses.
3 requirements are necessary for a valid cessation of business operations: (a)
service of a written notice to the employees and to the DOLE at least one month
before the intended date thereof; (b) the cessation of business must be bona fide
in character; and (c) payment to the employees of termination pay amounting to one
month pay or at least onehalf month pay for every year of service, whichever is
higher.
In this case, Phil Carpet continuously incurred losses starting 2007, as shown by
the Audited Financial Statements which were offered in evidence by the petitioners
themselves.