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YSS Employees V YSS Laboratories

The court ruled in favor of the Secretary of Labor in two issues regarding a labor dispute between YSS Laboratories and its employee union YSSEU. The Secretary validly certified the dispute for compulsory arbitration under the Labor Code and did not err by ordering the reinstatement of retrenched employees pending determination of the validity of their termination. The Secretary has broad authority and discretion to resolve disputes expeditiously in order to promote industrial peace and prevent harm to the national economy. The company must comply with return-to-work orders even if simultaneously challenging their validity.

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348 views1 page

YSS Employees V YSS Laboratories

The court ruled in favor of the Secretary of Labor in two issues regarding a labor dispute between YSS Laboratories and its employee union YSSEU. The Secretary validly certified the dispute for compulsory arbitration under the Labor Code and did not err by ordering the reinstatement of retrenched employees pending determination of the validity of their termination. The Secretary has broad authority and discretion to resolve disputes expeditiously in order to promote industrial peace and prevent harm to the national economy. The company must comply with return-to-work orders even if simultaneously challenging their validity.

Uploaded by

Marc Virtucio
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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343 YSS Employees v YSS Laboratories

December 4, 2009; Chico-Nazario, J

FACTS:
YSS Laboratories is a domestic corporation engaged in the pharmaceutical business. YSSEU is the sole and
exclusive bargaining representative of the rank and file employees of YSS Laboratories.
YSS Labs implemented a retrenchment program which affected 11 employees; 9 of which were officers and
members of YSSEU
Claiming discrimination and union-busting, after the necessary strike vote was taken , YSSEU staged a strike on
20 April 2001
conciliation proceedings were futile; Sec of Labor certified the labor dispute to the NLRC for compulsory
arbitration
o all striking workers were thereby directed to return to work within 24 hours from their receipt of the said
Order, and YSS Laboratories to accept them under the terms and conditions prevailing before the strike
YSS Laboratories, however, refused to fully comply with the directive: the 9 union officers and members who were
previously terminated from service pursuant to a valid retrenchment should be excluded from the operation of the
return-to-work order
o YSSEU, moved that YSS Laboratories be cited for contempt for refusing to admit the 18 workers
o Sec of Labor: pending determination of the validity of the retrenchment and illegal strike cases, reinstate
all
YSS Laboratories, petition for certiorari before the CA
o CA reversed Sec of Labor orders: YSS Laboratories validly carried out its retrenchment program, which
effectively severed the concerned employees employment with the company

ISSUES:
WoN Sec erred in certifying labor dispute to the NLRC for compulsory arbitration (NO)
WoN retrenched employees should be excluded from operation of return-to-work order (NO)

RATIO:
Orders of the Secretary of Labor, certifying the labor dispute involving the herein parties to the NLRC for
compulsory arbitration, and enjoining YSSEU to return to work and YSS Laboratories to admit them under the
same terms and conditions prevailing before the strike, were issued pursuant to LC 263(g)

LC 263 (g) and 264 have been enacted pursuant to the police power of the State, which has been defined as
the power inherent in a government to enact laws, within constitutional limits, to promote the order, safety,
health, morals and general welfare of society

incumbent upon Sec of Labor to bring about soonest, a fair and just solution to the differences between the
employer and the employees, so that the damage such labor dispute might cause upon the national interest may
be minimized as much as possible, if not totally averted, by avoiding stoppage of work or any lag in the activities of
the industry or the possibility of those contingencies that might cause detriment to the national interest

YSS Laboratories vigorous insistence on the exclusion of the retrenched employees from the coverage of the
return-to-work order seriously impairs the authority of the Secretary of Labor to forestall a labor dispute that he
deems inimical to the national economy. The Secretary of Labor is afforded plenary and broad powers, and is
granted great breadth of discretion to adopt the most reasonable and expeditious way of writing finis to the labor
dispute.

there is no showing that the assailed orders were issued in an arbitrary or despotic manner. The
Secretary of Labor acts to maintain industrial peace. His certification for compulsory arbitration is not intended to
interfere with the managements rights but to obtain a speedy settlement of the dispute.

the underlying principle embodied in LC 263(g) on the settlement of labor disputes -- that
assumption and certification orders are executory in character and are to be strictly complied
with by the parties, even during the pendency of any petition questioning their validity

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