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[SCOTY'S DEPARTMENT STORE v. NENA MICALLER](https://www.lawyerly.ph/juris/view/c3747?user=fbGU2WFpmaitMVEVGZ2lBVW5xZ2RVdz09)
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99 Phil. 762

[ G.R. No. L-8116, August 25, 1956 ]

SCOTY'S DEPARTMENT STORE, ET AL., PETITIONERS VS. NENA MICALLER, RESPONDENT.

D E C I S I O N

BAUTISTA ANGELO, J.:

This is a petition for  review of an order issued  by Hon. Jose  S.  Bautista,  Associate  Judge, Court of Industrial Relations, finding respondents, now petitioners, guilty of unfair labor practice and imposing upon  them a fine of P100, at  the same time ordering  them to  reinstate petitioner, now respondent, Nena  Micaller, with back  pay from December  1,  1953 until her  actual  reinstatement, which was affirmed by the court en banc in its resolution of August 14,  1954.

Nena Micaller was employed as a salesgirl in the Scoty's Department Store situated at 615 Escolta, Manila.  This store was owned and operated by Yu Ki  Lam,  Richard Yang, Yu Si Kiao and  Helen Yang.  Pursuant to section 5(&)  of  the  Industrial Peace  Act, Nena Micaller  filed charges of unfair labor practice  against  her above employers alleging that she was dismissed by them because of her membership in the National Labor Union and that, prior to her separation, said employers had been questioning their employees regarding their  membership  in  said union and had interfered with their right to organize under the law.

The employers denied the charge.   They claimed  that the complainant was dismissed  from the service  because of her misconduct and  serious disrespect to the management and her co-employees so much  so that  several criminal  charges were filed against her with the city  fiscal ¦of Manila who, after investigation, filed  the  corresponding informations against her and the same  are now pending trial in  court.

After due hearing, where both parties presented  their respective evidence, the court found  the  following facts: Prior  to November, 1953,  Nena Micaller was   earning P4.80 a day. After every New Year, she was given  from P180 to P200 as bonus whereas  the other employees  were only given P60.  For three consecutive years, 1950, 1951 And 1952, she was  given a  first prize for being the  best seller, the most  cooperative and  most honest employee. One week before October  12, 1953, she organized  a union .among the employees of the store which was latter affiliated with the National Labor Union.   Later, the National Labor Union sent a  petition to the store containing ten demands and so Nena was called  by the management for questioning and, in the  manager's office, Yu Ki  Lam, Richard Yang, Yu  Si  Kiao and  Helen Yarig asked her who were the members of  the  union, but she pretended not to know them.  On October 18,  1953, Richard Yang and Yu  Si Kiao, together with  a  brother-in-law, went to the house of Nena and there again questioned  her  regarding her union membership. On  October 19, Nena  was brought by  her employers to the  house of their  counsel, Atty. Joaquin Yuseco, and there she was  again questioned regarding her union activities and was even made to  sign a paper of  withdrawal  from the union.   In the night of October 19, the manager of the Store, Yu Ki Lam, asked each and  every employee whether they were members of the union  threatening to close the store if they would not dissolve the union.  On October 31, the union gave notice to strike to the management.  Upon receipt of this notice, the management hired temporary employees equal in number to the old.  The new employees  were affiliated with another labor union.

On November  28, 1953, an information for threats was filed against  Nena Micaller before the  municipal  court. This case  was dismissed. Another information was  filed against Nena Micaller for slander.  She  was sentenced to pay a fine of P50 but  the  decision was appealed to the court of first instance.  A  third information for slander was filed  against her  before the same  court.  And on November 30, she was dismissed for "insulting the owner of the store,  Yu Ki Lam, on November 5, and for talking to the girls inside the store  during business hours."   And on the strength of these facts the court found respondents,. now petitioners, guilty of unfair labor  practice and ordered them to pay  a fine of P100.

Petitioners now contend  that the industrial court erred in finding (1) that Nena Micaller was dismissed because of her membership in  the National Labor Union and her union  activities;  (2) that petitioners  have committed unfair labor practice; and (3) that petitioners can be legally punished  by  a fine of P100.

We  are afraid that  we cannot now look into points 1 and 2 for they involve questions of fact.  The industriar court has  made a careful analysis of the evidence and has found that petitioners have really subjected complainant and her co-employees to a series of questioning regarding^ their membership in the union or their union activities which in  contemplation of  law are deemed acts constituting unfair labor practice  [Section 4, (a)  (4), Republic Act No.  875].  This  finding  is binding upon this  Court following well-known precedents.[1]

Our law on this point is of recent enactment and so we may  find difficulty  in determining what acts or circumstances may constitute unfair labor practice within its  purview for lack of appropriate precedents.   However, there are many American cases that  may be resorted to where an employer charged with  discriminatory dismissal has been  found guilty of unfair labor practice under similar circumstances and was  given the corresponding sanction. One of such cases, which in our opinion  is on all  fours with the present, is NLRB vs. Harris-Woodson Co. (CCA-4, 1947,  179 F  2d 720)  where the following was held:

"As  to  the  Board's finding of interference, there  is abundant evidence of the questioning of employees as to membership in the onion and of  anti-union expressions  by the company's superintendent made in such a way as to discourage union membership. The rule  with respect thereto is well settled and  was stated by us recently in the case of NLRB vs. Norfolk-Southern Bus  Corpn., 159 Fed 2d 518, where we said:

'Questioning of employees concerning  union membership and activities and  disparaging remarks by  supervisory employees made in such a way as to hamper  the exercise of free choice on the part of  the employees, have been uniformly condemned as a violation of the Act. H. V. Heinz  Co. vs. NLRB, 311  US 514, 518, 61 S. Ct. 320, 85 L Ed 309;  Virginia Electric  & Power  Co. vs. NLRB, 4 Cir., 132  F. 2d 390,  392-395; NLRB  vs. Baltimore Transit Co., 4 Cir., 240 F 2d  51, 56; Piedmont Shirt Co.  w. NLRB, 4 Cir., 133 F 2d 738'

"As  to  the  discharge  of Edna  B.  Elder, the  president  of the union,  it appears that she was discharged  in the Spring  of 1945 at  the time when the question of union  representation was becoming acute.  The Company contends that  the ground of the discharge was insubordinate language  and conduct, and evidence of a controversy between  the employer and the superintendent  of the company was introduced.  The Board took the view, however, that this was not the  true reason for the discharge, but  only  a pre-text.  It was  shown that Mrs. Elder was a  competent and efficient employee with a long record of faithful service, and  that controversies and even quarrels between the employees and  the superintendent  had  not theretofore led to  discharge. According to Mrs. Elder's  testimony,  which was accepted  by  the Board, the controversy was of a very minor character and  furnished  no sufficient justification for the peremptory discharge of an efficient employee with a  long  record of  service.  Under such  circumstances, the Board may very well have concluded that the true reason for the discharge was other than the one given, and  was to be  found in the position  Mrs. Elder held in the union and her activity in its  behalf. This is  all the more reasonable  in view of  the manifest anti-union bias of  the company's  officers and superintendent and of  the controversy with  regard to the recognition of the union which had just been revived  . . "

The  next  question to be determined  is whether the industrial court is justified in imposing  a fine not only upon Yu Ki  Lam, who was  the manager of  the store,  but also upon Richard Yang, Yu Si Kiao  and Helen  Yang, who were mere  owners  thereof but had  no  participation  in its  management.  Petitioners  contend  that section  25  of Republic  Act No. 875 being penal in  character should be strictly construed in  favor of the accused and in that sense their guilt can only be established by clear and positive evidence and  not merely  be presumptions or  inferences as was done by the industrial court.   In other words, it is contended  that the  evidence as regards  unfair labor practice with reference to the three above-named petitioners is not  clear enough to serve  as basis of their conviction for  unfair labor practice and  the fine  imposed upon them is unjustified.

This question requires a little digression on the  issue of whether the Court of Industrial Relations has jurisdiction to impose  the  penalties  prescribed in section  25 of Republic  Act  No. 875.

"Sec.  25. Penalties. Any person who violates the provisions  of section three of this Act shall be  punished by a fine of not less than one hundred pesos  nor more than one thousand pesos, or by imprisonment of not less than one month nor more than  one year, or by both such fine  and imprisonment, in the discretion of the Court.

"Any  other violation  of  this Act which is declared  unlawful shall be punished by a fine of not less than fifty pesos  nor more than five hundred pesos for each offense."

The  above provision is general in nature for it does not  specify  the court  that may act when  the violation charged calls for the imposition of the  penalties therein provided.  It merely  states that they may be imposed in the discretion of the court."  Does the word "Court" employed  therein refer to the Court of  Industrial Relations under section 2 (a.)  of the same Act which provides that, "Court" means the  Court  of  Industrial Relations  *  *  * unless  another Court shall  be  specified?"

After a mature deliberation, this Court has reached the conclusion that, said provision notwithstanding, that word cannot  refer to the  Court  of Industrial  Relations for to give that  meaning  would  be violative of  the  safeguards guaranteed to every accused by our Constitution.  We refer to those which postulate that "No  person7 shall be held to answer for a criminal offense without  due process of law"  [Article III, section 1,  (15), Philippine Constitution], and that "In all criminal prosecutions the accused  *  *  * shall enjoy the right  to be  heard  by himself and  counsel, to be informed of the nature and cause of the accusation against him, to have a  speedy and public trial,  to meet the witnesses face to face, and to have compulsory process to secure the attendance  of  witnesses  in  his  behalf" [Article III,  section 1, (17)]

The procedure laid down by law to be observed by the Court of Industrial  Relations in dealing with unfair labor practice cases negates those constitutional guarantees to the accused.   And this is so because, among other things, the law provides that "the rules of  evidence prevailing in courts of law or equity shall not be controlling .and it is the spirit and intention of this Act that the Court (of Industrial Relations)  and its members and Hearing Examiners  shall  use every  and  all  reasonable  means  to ascertain the facts in each case speedily and objectively and without regard to  technicalities  of  law or procedure."  It is likewise enjoined that "the Court shall not be bound solely by the  evidence presented during the hearing but may avail itself of all other means such as (but not limited to) ocular  inspections and questioning of well-informed persons which results must be made a part of the record" [section  5  (b), Republic Act No.  875],   All  this means that an accused may be tried without the right "to  meet the witnesses  face to face" and may be convicted merely on preponderance  of  evidence and  not  beyond reasonable doubt.   This is against the due process guaranteed by our Constitution.  It may be  contended that this gap may be subserved by requiring the Court of Industrial Relations to observe  strictly the rules applicable to criminal cases to meet  the requirements of the  Constitution, but this would be tantamount to amending the law which is not within the province of the judicial  branch  of our Government.

A comparative study of the  jurisdiction of  the Court of Industrial Relations and of that of the Court of Agrarian Relations created by Republic Act No. 1267 is enlightening.  Note that both Acts (No. 875 and No.  1267)  contain a general provision  prescribing,  in  one  a penalty of "a fine of  not  less than one hundred  pesos nor more than one thousand pesos,  or by imprisonment  of not less than one month nor more than  one year, or by both such fine  and imprisonment, in the  discretion  of the Court", (section 25, Republic Act No. 875) and, in the other, a penalty of "a fine not exceeding two thousand pesos or imprisonment not exceeding one year, or both, in  this discretion of the Court" (section 14, Republic Act No. 1267), upon any person who violates any of the provisions therein specilied.   But while Republic Act No. 875, as affects in Court of Industrial Relations, is silent as to the procedure to be followed in the prosecution of the offense, Republic Act No. 1267 as affects the Court  of Agrarian Relations, provides that  "Criminal  proceedings should be  prosecuted  as in ordinary cases" (section 10).  This is a clear indication that when Congress intends  to confer criminal jurisdiction upon an administrative court,  it expressly  says so in an unmistakable  language.  Again,  Congress  has made its intention clear when it amended  the law by  eliminating entirely this criminal jurisdiction originally conferred upon the  Court of  Agrarian Relations.  This  was made manifest when  Congress  enacted Republic Act No. 1409 repealing those provisions  affecting the  criminal Act No. 1409 repealing those provisions affecting the criminal jurisdiction aforementioned  (sections 7  and 10).

It would not be amiss  to quote hereunder portions of the  legislative  record  containing  the deliberations made on  the bill  eliminating the criminal  jurisdiction  of the Court of Agrarian Relations,  which  show that the  real intent of Congress was to  place that court on the  same footing as the  Public Service Commission and the  Court of Industrial Relations by confining their jurisdiction exclusively to  civil matters:

"MR.  MARCOS. Mr.  Speaker, will  the sponsor  of the bill  yield? I should like to ask some questions regarding  the amendments of the  Committee to the Court of Agrarian Law.

"The SPEAKER. The sponsor  may yield, if  he so desires.

"MR.  FRANCISCO. With pleasure.

"MR.  MARCOS.  I should  Jike to call the attention of the distinguished  chairman of the  Committee  on Judiciary to page 3 of the bill  of the  committee which amends  section 10 of the Agrarian Court Law, Republic  Act No.  1267.  The  gentleman, in  the bill of the committee on page 3, line  11,  struck out the words 'not criminal in nature', so that it reads on line 11:

'Provided, however, That in  the hearing, investigation and  determination of any question or controversy (the gentleman struck out the words 'not criminal in  nature') and in exercising any duty and power under this Act, the court shall act according to justice and equity and substantial merits of the case without regard  to  technicalities or legal forms, etc."

Now, we find  on lines 17 and 18 that the whole sentence 'Criminal Proceedings should be prosecuted as in  ordinary  cases' was stricken out also.  There seems  to. be a  little  ambiguity,  and  from  this ambiguity arises my doubt as to the propriety of removing  from the Agrarian  Court the applicability of the rules of evidence, because if these amendments of the committee will be interpreted to mean that the Agrarian Court shall have  jurisdiction over  criminal cases  which  may  arise, then it will be  highly  improper to disregard  the  rules of evidence in Such  criminal trials.   Now, may I know from  the distinguished chairman  if the purpose  of  these amendments of the committee is to continue with the criminal jurisdiction  of the Agrarian  Court, or  to  remove  from the Agrarian Gourt such  other criminal jurisdiction?

"MR.  FRANCISCO. The  purpose  of  the  committee is to  remove completely from the Agrarian Oourt  any jurisdiction over  criminal matters.

"MR.  MARCOS. I see.  Now, does this  refer only to criminal jurisdiction referred to on page 3, lines 2  and 3, which reads as follows:

'The  Court  shall have  concurrent jurisdiction with the Court of First Instance over employer and farm employee  or labor under Republic Act  Numbered  Six hundred two and over landlord and tenant  involving violations of the Usury Law  (Act No.  2655, as Amended)  and  of inflicting penalties provided therefore.'

Or does it refer to other cases of criminal jurisdiction?

"MR.  FRANCISCO.  It  refers to all  cases  of  criminal jurisdiction. As proof of that, the gentleman from Ilocos Norte will please note that section 8 of the bill seeks the repeal  of Section 14 of  the law. "Mr.  Marcos. Yes, in  short, therefore,. the Agrarian Court  is deprived of all cases of criminal jurisdiction.

"MR.  FRANCISCO. The gentleman is  correct

"Mr.  Marcos. And the  only jurisdiction  that this Agrarian Court will retain, therefore, will be civil jurisdiction.  Is that  right?

"MR.  FRANCISCO. As far as the nature involved, is civil, yes.

"MR.  MARCOS. Other  than criminal?

"MR.  FRANCISCO. Yes.

"MR.  MARCOS. That is as provided for in the Tenancy Law.

"MR.  FRANCISCO. The gentleman is correct."

"Mr.  Cuenco. According, to the exposition of the gentleman on this bill last night, which was quite convincing, the court that  is sought  to  be established  by this bill will exercise quasi-judicial function and this court will be similar in nature to the Public Service Commission and to the  Court of Industrial Relations. Am  I right?

"MR.  FRANCISCO. The gentleman is correct

"Mr. Cuenco. So, strictly speaking, there  is no necessity to put here a proviso that this court shall  have no jurisdiction over proceedings criminal in nature.

"MR.  FRANCISCO. But we have to  introduce such an  amendment in view of the provisions of Republic Act No. 1267 which gives the Court of Agrarian Relations criminal jurisdiction.  We  are removing by this act  the criminal jurisdiction of  the Agrarian Court.

"Mr. Cuenco.  But I will go further than that.  Inasmuch as this is a new court  whose functions  are not yet known to our people and to the bar, will  not  the  gentleman entertain an  amendment to Section  1, on page 1, line  8, after the  word "justice" that will reads  as follows: 'Provided, however, That this court  shall  exercise no jurisdiction over proceedings criminal in  nature",  just to avoid confusion?

"MR.  FRANCISCO. The committee will  be willing to entertain  such an amendment."  (Congressional  Record, House  of Representatives, No. 10, July  20, 1955, pp. 3778-5779; 3780.)  (Italics supplied.)

In  conclusion, our considered opinion is that the power to impose the  penalties provided for in section 25 of Republic Act No.  875 is lodged in ordinary courts, and not in the Court of Industrial Relations, notwithstanding the definition of the word "Court" contained in section 2 (a) of said Act.  Hence, the  decision  of the industrial court in so far as it  imposes fine of P100 upon  petitioners is illegal  and should be nullified.

Wherefore,  the decision appealed  from is  modified by eliminating the fine of P100 imposed upon petitioners.   In all other respects, the same is affirmed, without pronouncement as  to  costs.

Bengzon,  Padilla, Montemayor,  Labrador,   Concepcion, Reyes, J. B. L. Endencia, and Felix, JJ., concur.



[1] Barwill Bros. vs.  Generoso, 38  Off. Gaz., 2721;  Central Azucarrera vs.  Court, 40 Off. Gaz., 3rd  Sup., 319; Del Rosario vs Benguet, 40 Off. Gaz.,  4466; Elks Club vs. Rovira, 45 Off. Gaz., 3829;Kaisahan  vs. Gotamco Sawmill, 45  Off. Gaz., Sup.  to No. 9, 147;Yellow Taxi vs. Manila Yellow Taxicab, 45 Off. Gaz., 4856; LeyteLand Trans, vs. Leyte Farmers, 45 Off. Gaz.,  4862; Batangas vs.Bagong Pagkakaisa, 46 Off.  Gaz.,  4236; Dee C. Chuan vs Court,86  PhiL, 365, 47 Off. Gaz., 3476,

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