Visayas Community Medical Center v.

Yballe

FACTS: The NFL is the exclusive bargaining representative of the rank-and-file employees of
MCCH (now VCMC). NAMA-MCCH-NFL is a local affiliate whose union leaders proceeded to
strike despite the fact that it is not a legitimate labor organization. The respondents in this
case are staff nurses and midwives of MCCH who actively joined and were believed to have
took part in committing illegal acts during the strike. Consequently, MCCH terminated the
union leaders of NAMA-MCCH-NFL as well as the respondents. The CA, however, found that
respondents cannot be considered to have committed illegal acts since their participation
was limited to the wearing of arm bands.

ISSUE #1: Whether or not the dismissal of the employees is valid

ISSUE #2: Whether or not they are entitled to backwages.

ISSUE #3: Whether or not theyare entitled to reinstatement.

HELD#1: No. Article 263 (a)(par 3) provides that any union officer who knowingly
participated in an illegal strike and any union officer or union member who knowingly
participates in the commission of illegal acts during a strike may be declared to have lost his
employment status. Here, the respondents merely participated in the illegal strike but did
not commit any of the illegal acts. Hence, their termination is not valid.

HELD #2: No. The principle of a “fair day’s wage for a fair day’s labor” remains as the basic
factor in determining the award of backwages. If there is no work performed by the
employee there can be no wage or pay unless the laborer was able, willing and ready to work
but was illegally locked out, suspended or dismissed or otherwise illegally prevented from
working. For this exception to apply, it is required that the strike be legal. Since the strike in
this case was illegal, the respondents cannot be awarded with backwages.

HELD #3: No. Considering that strained relations ensued, the grant of separation pay to
respondents is the alternative in lieu of reinstatement.

Jurisprudence states that the alternative relief for union members who were dismissed for
having participated in an illegal strike is the payment of separation pay in lieu of
reinstatement under the following circumstances: (a) when reinstatement can no longer be
effected in view of the passage of a long period of time or because of the realities of the
situation; (b) reinstatement is inimical to the employer’s interest; (c) reinstatement is no
longer feasible; (d) reinstatement does not serve the best interests of the parties involved;
(e) the employer is prejudiced by the workers’ continued employment; (f) facts that make
execution unjust or inequitable have supervened; or (g) strained relations between the
employer and employee.