PHASE 1: Negotiation Phase
PHASE 2: Administration Phase
PHASE 3: Re-negotiation Phase
G.R. No. L-20303 September 27, 1967
REPUBLIC SAVINGS BANK (now REPUBLIC
BANK), petitioner,
vs.
COURT OF INDUSTRIAL RELATIONS, ROSENDO T.
RESUELLO, BENJAMIN JARA, FLORENCIO ALLASAS,
DOMINGO B. JOLA, DIOSDADO S. MENDIOLA,
TEODORO DE LA CRUZ, NARCISO MACARAEG and
MAURO A. ROVILLOS, respondents.
Lichauco, Picaso & Agcaoili and R. Santayana for petitioner.
G. E. Fajardo for respondents.
CASTRO, J.:
The vital issue in this case is whether the dismissal of the eight (8)
respondent employees by the petitioner Republic Bank
(hereinafter referred to as the Bank) constituted an unfair labor
practice within the meaning and intendment of the Industrial
Peace Act (Republic Act 875). The Court of Industrial Relations
(CIR) found it did and its decision is now on appeal before us. The
Bank maintains that the discharge was for cause.
The Bank had in its employ the respondents Rosendo T. Resuello,
Benjamin Jara, Florencio Allasas, Domingo B. Jola, Diosdado S.
Mendiola, Teodoro de la Cruz, Narciso Macaraeg and Mauro A.
Rovillos. On July 12, 1958 it discharged Jola and, a few days after
(July 18, 1958), the rest of respondents, for having written and
published "a patently libelous letter . . . tending to cause the
dishonor, discredit or contempt not only of officers and employees
of this bank, but also of your employer, the bank itself."
The letter referred to was a letter-charge which the respondents
had written to the bank president, demanding his resignation on
the grounds of immorality, nepotism in the appointment and
favoritism as well as discrimination in the promotion of bank
employees. The letter, dated July 9, 1958, is hereunder reproduced
in full:
Mr. Ramon Racelis
President, Republic Savings Bank
M a n i l a
"Dear Mr. President:
We, the undersigned, on behalf of all our members and
employees of the Republic Savings Bank, who have in our
hearts only the most honest and sincere motive to
conserve and protect the interest of the institution and its
200,000 depositors, do hereby, demand the much
needed resignation of His Excellency, Mr. Ramon Racelis
as President and Member of the Board of Directors of the
Bank.
Mr. President, you have already, in so many occasions,
placed the Bank on the verge of danger, that now we
deem it right and justifiable for you to leave this Bank
and let other more capable presidents continue the work
you have not well accomplished.
In the above instance, we are presenting charges which in
our humble contention properly justifies incapacity on
your part to continue and assume the position as top
executive of the huge institution:
(1) That you Mr. President, have tolerated and
practiced immorality in this Bank. We have been
expecting you to do something about this
malpractice which is very disgraceful and affects
the morale of the hundreds of your employees.
But so far, Mr. President, you have just let this
thing passed through. As a matter of fact, you
have even promoted these women like Misses
Pacita Mato and Edita Castro. These women are
of questionable characters, Mr. President, and
should have had no place in the Bank as
managers or even as mere employees. We know
Mr. President, because it is an open secret in the
Bank, that you have illicit relations with one of
them — Miss Edita Castro. As top officer and as
father of the employees of the Bank, you have
shown this bad example to your employees. Mr.
President, we are really ashamed of you.
(2) That you have allowed the practice of
nepotism in this Bank. You have employed
relatives of yours like Honorio Ravida;
Bienvenido Ravida; Antonio Racelis; Jesus
Antonio; and Argentina Racelis. Not only that
Mr. President. You have also given those nieces
and nephews of yours good positions at the
expense of the more capable employees. Mr.
President, if we have to mention all of them, one
page will not be enough.
(3) With regards to promotion, you have given
more preferences to your close relatives. When
the Bank advocated the sending of pensionados
to States, you have only limited your choice
among your nieces, nephews, and querida,
namely, Miss Argentina Racelis, Mr. Jesus
Antonio, Miss Edita Castro, and her brother-in-
law, Mr. Pedro Garcia, Jr. In doing this, Mr.
President, you have only lowered the reputation
and standing of the Republic Savings Bank.
There is really no sense in sending high school
and B.S.E. graduates to States to study advanced
banking. Because of this silly decision, it took
one pensionado six months and cost the Bank a
total of P10,000.00 just to study Christmas
savings. That subject is very simple; one need
not go to States to study savings; that you know
full well, Mr. President. The reason why you sent
Miss Castro to States was because you were also
there. Are we not right?
(4) That you Mr. President, tolerated and still
tolerating grave dishonesty in this Bank as
evidenced by the following irregularities and
anomalies;
(a) In one of our branches, around
P200,000.00 was mulcted and
embezzled by a certain Maximo
Donado by doctoring the ledgers and
records of that particular office. To the
present, the amount is still increasing
and some more are being dug up from
the records everyday ever since its
discovery in February 1957. In this case
you dismissed Mr. M. Donado,
immediately. But this was all that you
did. If you have to go back to the
history of the case, you will find out
that your beloved nieces and nephews
are also involved having been
managers of that particular office.
Another nephew, the Vice President-
Operations, then Vice President,
Personnel, was also involved for valid
reasons that he did not even shift this
particular employee to other branches
or departments since the beginning
when it has been the policy of the Bank
to reshuffle its personnel. If you want
to know why your good nephew did not
transfer this employee, we will tell you.
"Your good nephew has eaten too many
baskets of delicious alimango." Mr.
President, if there is someone to be
blamed in this particular case, it is your
good nephews and nieces for their
gross negligence.
(b) Aside from the one mentioned
above, we have also Mr. Rodolfo
Francisco, who in April 1955,
maliciously withdraw (sic) P970.00 in
two withdrawal slips from the account
of one depositor in one of our
provincial offices, inserting his name as
co-depositor in the savings account
ledger.
(c) In January 1958, Mr. Jose de los
Santos expended and approved
representation expense in the amount
of P300.00 in one of our provincial
offices.
(d) Mr. Federico M. Dabu, the ex-
cashier and now Personnel Manager,
incurred a shortage in the amount of
P1,240.00 in the course of the audit on
August 3, 1954.