In Visayan Electric Company Employees Union-ALU-TUCP and Casmero Mahilum v. Visayan Electric Company, Inc. (VECO), the Supreme Court affirmed the dismissal of a union president due to loss of trust and confidence and upheld the importance of adhering to procedural rules for filing petitions. The Court emphasized that failure to file a petition within the prescribed period is a jurisdictional defect that cannot be overlooked, even for a one-day delay. This ruling underscores the need for strict compliance with procedural deadlines in labor disputes and validates an employer’s right to terminate an employee for actions detrimental to the company’s interests.

When is a Delay More Than Just a Delay?: Examining Timeliness and Trust in Labor Cases

This case revolves around a labor dispute between the Visayan Electric Company (VECO) and its employees’ union, ALU-TUCP, focusing particularly on the dismissal of Casmero Mahilum, the union president. The central legal question is whether the Court of Appeals (CA) erred in dismissing the union’s certiorari petition due to a one-day delay in filing, despite the serious allegations of unfair labor practice and illegal dismissal. Further, it examines whether VECO was justified in terminating Mahilum’s employment based on loss of trust and confidence due to a published press release critical of the company.

The dispute began when the union protested VECO’s alleged non-compliance with the Collective Bargaining Agreement (CBA), leading to Mahilum’s demotion and subsequent termination. The National Labor Relations Commission (NLRC) ruled in favor of VECO, prompting the union to file a certiorari petition with the CA, which was dismissed for being filed a day late. The Supreme Court (SC) then took up the case to determine if the delay could be excused in the interest of substantial justice, and to assess the merits of the unfair labor practice and illegal dismissal claims.

The Supreme Court, in its analysis, focused on the mandatory nature of procedural rules, particularly the 60-day period for filing a certiorari petition under Section 4, Rule 65 of the 1997 Rules of Civil Procedure. The Court stated,

“[W]hen the law fixes thirty days [or sixty days as in the present case], we cannot take it to mean also thirty-one days. If that deadline could be stretched to thirty-one days in one case, what would prevent its being further stretched to thirty-two days in another case, and so on, step by step, until the original line is forgotten or buried in the growing confusion resulting from the alterations? That is intolerable.”

Building on this principle, the Court emphasized that timeliness is a jurisdictional requirement that cannot be waived lightly.

The Court also addressed the union’s argument that the delay was due to an honest mistake in calculating the deadline. It found this unconvincing, asserting that ignorance of the correct number of days in a month is not a justifiable excuse for non-compliance with procedural rules. While the Court has the power to suspend its own rules, it found no exceptional circumstances in this case that would warrant such leniency. Thus, the Court held that the CA did not err in dismissing the petition based on the procedural defect.

Turning to the substantive issues, the Court examined the allegations of unfair labor practice (ULP) and illegal dismissal. The union argued that VECO violated the CBA by not following the grievance machinery procedure in disciplining union members. However, the Court agreed with the NLRC that the specific provision in the CBA allowing the company to impose disciplinary actions based on its own rules and regulations took precedence over the general grievance procedure. This interpretation aligned with the principle that specific provisions prevail over general ones in contract interpretation. Furthermore, the Court referenced jurisprudence supporting an employer’s prerogative to instill discipline and impose penalties, including dismissal, provided the rules are fair and reasonable.

Regarding Mahilum’s dismissal, the Court determined that VECO had a just cause under Article 282(c) of the Labor Code, which allows termination for fraud or willful breach of trust. The Court emphasized that the loss of trust and confidence must be based on substantial evidence and willful intent. In this case, Mahilum, as union president, caused the publication of a press release that the company deemed libelous and damaging to its reputation. The Court quoted the relevant provision of the Labor Code:

Art. 282. Termination By Employer. – An employer may terminate an employment for any of the following causes:
(c) fraud or willful breach of trust by the employee of the trust reposed in him by his employer or duly authorized representative;

The Court found that Mahilum’s actions constituted a willful breach of trust, as he intentionally made derogatory statements against the company instead of using the proper grievance channels.

Mahilum’s position as a Customer Service Representative was also deemed to involve a high degree of responsibility and trust, given his interaction with customers and handling of company funds. The Court found that his actions undermined this trust, justifying his dismissal. The Court cited Cruz, Jr. v. CA, emphasizing that “an employer cannot be compelled to retain an employee who is guilty of acts inimical to the interests of the employer. A company has the right to dismiss its employee if only as a measure of self-protection.”

Finally, the Court affirmed that VECO complied with procedural due process by providing Mahilum with two written notices before his termination, informing him of the charges against him and the reasons for his dismissal. The Court rejected the argument that Mahilum’s length of service should mitigate the consequences of his actions, stating that longer service implies a greater responsibility to comply with company rules. The Court concluded by reiterating the importance of fairness and justice in resolving labor disputes, balancing the protection of labor with the legitimate interests of management.

FAQs

What was the key issue in this case?	The key issue was whether the CA erred in dismissing the union’s petition for being filed one day late and whether the dismissal of the union president was justified.
Why was the union’s petition dismissed by the Court of Appeals?	The petition was dismissed because it was filed one day after the 60-day reglementary period, a procedural requirement that the court deemed mandatory.
What was the reason for Mahilum’s termination?	Mahilum was terminated for loss of trust and confidence due to his involvement in publishing a press release that was deemed libelous and damaging to VECO’s reputation.
Did VECO follow proper procedure in terminating Mahilum’s employment?	Yes, the NLRC and the Supreme Court found that VECO complied with the procedural due process requirements by providing Mahilum with two written notices before his termination.
What is the significance of the CBA in this case?	The CBA was central to the dispute, particularly concerning the grievance procedure and disciplinary actions. The Court ruled that the specific provision regarding disciplinary actions prevailed over the general grievance procedure.
What is the legal basis for terminating an employee based on loss of trust and confidence?	Article 282(c) of the Labor Code allows termination for fraud or willful breach of trust, which was the basis for Mahilum’s dismissal.
Can a one-day delay in filing a petition be excused by the courts?	The Supreme Court held that the one-day delay could not be excused, as timeliness is a jurisdictional requirement that must be strictly observed.
What was Mahilum’s position in the company, and why was it relevant?	Mahilum was a Customer Service Representative, a position that involved a high degree of responsibility and trust due to his interaction with customers and handling of company funds.

The Visayan Electric case underscores the critical importance of adhering to procedural rules in legal proceedings, especially in labor disputes. It reinforces the principle that timeliness is a jurisdictional requirement that courts cannot easily overlook. Moreover, the ruling affirms an employer’s right to protect its interests by terminating employees who engage in actions that undermine trust and confidence, provided that due process is observed. The case serves as a reminder to both employers and employees to act responsibly and within the bounds of the law and their collective bargaining agreements.

For inquiries regarding the application of this ruling to specific circumstances, please contact ASG Law through contact or via email at frontdesk@asglawpartners.com.

Disclaimer: This analysis is provided for informational purposes only and does not constitute legal advice. For specific legal guidance tailored to your situation, please consult with a qualified attorney.
Source: Visayan Electric Company Employees Union-ALU-TUCP and Casmero Mahilum, Petitioners, vs. Visayan Electric Company, Inc. (VECO), Respondent., G.R. No. 205575, July 22, 2015