When Can Employees Be Dismissed for Participating in a Strike?

G.R. Nos. 98295-99, April 10, 1996

Imagine a workplace dispute escalating into a full-blown strike. While strikes are a recognized tool for workers to voice their concerns, the law sets clear boundaries. What happens when a strike crosses the line and becomes illegal? Can employees be dismissed for participating, even if they weren’t the instigators? This case delves into the nuances of illegal strikes and the extent to which employees can be held liable for their actions.

This case, International Container Terminal Services, Inc. (ICTSI) vs. National Labor Relations Commission (NLRC), revolves around strikes staged by labor unions at ICTSI and the subsequent dismissal of employees. The Supreme Court clarifies the circumstances under which employees can be dismissed for strike-related activities, focusing on the critical distinction between mere participation and active involvement in illegal acts.

The Legal Landscape of Strikes and Employee Rights

In the Philippines, the right to strike is constitutionally protected, allowing workers to collectively withhold their services to pressure employers to address grievances. However, this right is not absolute and is governed by the Labor Code and related regulations.

Article 264(a) of the Labor Code is central to understanding the legal implications of strikes. It states that any union officer who knowingly participates in an illegal strike, and any worker or union officer who knowingly participates in the commission of illegal acts during a strike, may lose their employment status. This provision highlights a crucial distinction: union officers face stricter scrutiny, while ordinary workers are primarily liable for specific illegal acts committed during the strike.

Key terms to understand:

• Strike: A temporary stoppage of work by a body of workers to express a grievance or enforce a demand.
• Illegal Strike: A strike conducted in violation of legal requirements, such as those concerning cooling-off periods or involving prohibited activities.
• Constructive Dismissal: Occurs when an employer’s actions, while not explicitly terminating employment, render continued employment impossible, unreasonable, or unlikely.

Example: Imagine a group of employees goes on strike without providing the required notice to the Department of Labor and Employment (DOLE). This strike could be declared illegal. If, during the strike, some employees damage company property, they could face dismissal, even if the strike itself was initially for legitimate grievances.

The Case of ICTSI: Strikes, Dismissals, and Legal Battles

The narrative unfolds with ICTSI taking over operations at the Manila International Container Terminal (MICT). Following the takeover, labor disputes arose, culminating in strikes by the Aduana Skilled & Unskilled Labor Union (ADSULU) and Luzviminda Integrated Stevedoring Labor Union (LISLU).

The timeline of events includes:

• May 19, 1988: ICTSI formally signed the MICT contract with PPA.
• June 12, 1988: ICTSI took over MICT’s operations and screened PPA-MICT employees.
• August 16, 1988: ADSULU and LISLU staged their first strike, which was later declared illegal by the NLRC.
• March 1, 1989: ADSULU staged another strike, also later declared illegal.
• March 8, 1989 and April 5, 1989: ICTSI issued suspension and dismissal letters to 21 employees for insubordination and participation in an illegal strike.

The central issue was whether ICTSI’s non-absorption of certain workers constituted constructive illegal dismissal and whether the reinstatement of other workers who participated in the strike was justified.

The NLRC ruled that the non-absorption of some employees was indeed constructive illegal dismissal and ordered the reinstatement of several employees who participated in the strike, albeit without backwages for some.

ICTSI elevated the case to the Supreme Court, arguing that the NLRC had gravely abused its discretion.

The Supreme Court, in its decision, emphasized the importance of distinguishing between mere participation in a strike and active involvement in illegal acts during the strike. The Court quoted:

“[U]nion officers may be dismissed not only for their knowing participation in an illegal strike, but also for their commission of illegal acts in the course of strike, whether legal or illegal but union members may only be dismissed for their participation in the commission of illegal acts during a strike, whether legal or illegal.”

The Court found no substantial evidence that the employees ordered to be reinstated had engaged in illegal acts beyond merely participating in the strike. The Court also affirmed the NLRC’s finding that by extending the services of some employees beyond the initial cut-off period, ICTSI had effectively absorbed them, making their subsequent termination without cause illegal.

Practical Implications for Employers and Employees

This case underscores the need for employers to act cautiously when dealing with employees involved in strikes. Dismissal should only be based on clear evidence of participation in illegal acts, not simply on participation in the strike itself.

For employees, it serves as a reminder that while the right to strike is protected, engaging in violence or other illegal activities during a strike can have severe consequences, including loss of employment.

Key Lessons:

• Employers must have solid evidence of illegal acts to justify dismissing striking employees.
• Mere participation in a strike is not sufficient grounds for dismissal unless the employee is a union officer and the strike is illegal.
• Extending an employee’s service beyond a probationary period can lead to the assumption of regular employment status.

Hypothetical Example: A group of employees participates in a legal strike. During the strike, one employee throws rocks at company vehicles. Only the employee who threw the rocks can be dismissed for illegal acts, not the entire group of strikers.

Frequently Asked Questions

Q: What constitutes an illegal act during a strike?

A: Illegal acts can include violence, property damage, preventing non-striking employees from working, and violating court orders related to the strike.

Q: Can an employer dismiss all employees who participate in an illegal strike?

A: No, only union officers who knowingly participate in an illegal strike and workers who commit illegal acts during the strike can be dismissed.

Q: What is the difference between a legal and an illegal strike?

A: A legal strike complies with all procedural requirements under the Labor Code, such as providing notice to the DOLE and observing cooling-off periods. An illegal strike fails to meet these requirements or involves prohibited activities.

Q: What rights do employees have during a legal strike?

A: Employees have the right to peacefully picket and express their grievances without fear of reprisal, as long as they do not engage in illegal acts.

Q: How does constructive dismissal apply in labor disputes?

A: Constructive dismissal can occur when an employer creates a hostile work environment or makes changes to the terms of employment that force an employee to resign. In the context of a strike, it might arise if an employer unfairly targets or punishes employees for participating in protected labor activities.

Q: What should an employer do if they believe a strike is illegal?

A: The employer should seek legal advice immediately and follow the proper procedures for declaring the strike illegal, including notifying the DOLE and potentially seeking a court injunction.

ASG Law specializes in labor law and employment disputes. Contact us or email hello@asglawpartners.com to schedule a consultation.