JHMC loses labor case; prexy liable for damages

BEHIND THE SCENES

Alfred P. Dizon

BAGUIO CITY -- State-owned John Hay Management Corp. lost another labor case in a string of management-related complaints. In a 24-page decision dated Jan. 5, 2015, the National Labor Relations Commission – Fourth Division upheld the NLRC-RAB-CAR resolution finding JHMC human resource assistant Ana Badon illegally suspended and awarded her back wages and moral and exemplary damages amounting to P113,463.50 and ordering her reinstatement without loss of seniority rights.

The NLRC Fourth Division upheld the NLRC-RAB-CAR’s resolution which said in part, “During the period of her illegal suspension, from Dec. 23, 2013 to Jan. 17, 2014, complainant and those dependent upon her had to survive without her usual salary.

“Her deprivation of economic compensation, during otherwise happy occasions such as Christmas and New Year, caused her mental anguish, serious anxiety and wounded feelings. Despite having been duly informed about complainant's sensitive pregnancy and threatened abortion, and in spite of the fact that the Internal Audit Office had already completed and submitted a comprehensive management and operations audit of the HRD to the JHMC board for its consideration before Oct. 14 2013 without any finding of guilt on the part of complainant, respondent Agbayani (JHMC president and CEO Dr. Jamie Eloise Agbayani) continued to harass and unlawfully order her to transfer to a position that entailed a demotion in rank and diminution in benefit, as well as strenuous physical activities of going to and fro from the ASD office at Cottage 626 to the carport area, then up again to the second floor where the supplies are stored, and moving, carrying and transferring of boxes and/or supplies to requesting departments, which are definitely prejudicial to her sensitive pregnant condition.

“Undoubtedly, complainant's unreasonable and unlawful transfer, eventual illegal suspension, and illegal constructive dismissal were attended by bad faith and constituted acts oppressive to labor, and were effected in a wanton, oppressive or malevolent manner. Hence, her award for moral and exemplary damages must be upheld.”

Badon’s 15-day suspension sprang from her refusal to comply with Special Office Order No. 29, series of 2013 dated Sept. 13, 2013 of Agbayani which ordered her to transfer as Supply Assistant, a position lower than her current position.  Soon after, respondent Agbayani issued to her a notice to explain directing her to explain within 48 hours for her non-compliance with SOO 29, in violation of Section 4.16 of the JHMC Code of Discipline and Decorum “Refusal for unjustifiable reason to be transferred to another department or workplace;” and Section 4.20 “Committing other acts of insubordination, non-attendance, or neglect of duty not embraced by other provisions.”

On Sept. 23 2013, Badon replied to the notice by explaining that her refusal to accept the transfer as due to the following, among others: 1) She is in no way knowledgeable of the position she is being transferred to; 2) The position she is to hold does not even match her current job level; 3) The nature of an audit requires constant access of both the division and the auditors to documents that need to be viewed and reviewed, which will be impossible once she is locked out of the office; 4) This seems to be the first time an audit is done on a division where its employees are transferred simultaneously to a different department; 5) The duration of the transfer is not specifically stated in the special order being served.

 On Oct. 4, 2013, Agbayani issued a second Notice to Explain dated Sept. 21 2013, directing Badon to explain why no disciplinary action should be taken against her for leaving the JHMC premises of JHMC on 17 September 2013 without filing a form for undertime, official business (0B) or pass slip.

Agbayani claimed that Badon’s leaving the office constituted a violation of Section 4.5 of the JHMC Code of Discipline and Decorum or “Refusing or failing to do assigned task or to obey official orders, instructions, or to follow established procedures without justifiable cause; and Section 4.7 Leaving work assignment during official working hours without logging out and/or without prior permission from the department head or immediate supervisor."

On the same day, Badon submitted a written explanation stating that she was on official business to the Social Security System office to follow up condonation of employee loans. Also on the same day, Atty. Michelle Regala-Niebres, JHMC vice president and chairman of the investigation committee, issued an internal memorandum directing  the members of the committee to convene the following day and investigate the complaint filed by JHMC president Agbayani against Badon for the latter's refusal to comply with the transfer order, failure to do assigned task or obey official orders, refusal to follow established procedures, leaving work assignment during official working hours without prior permission, and  other acts of insubordination.

On Oct. 29, 2013, Agbayani issued another notice to explain to Badon for continuously refusing to obey SOO 29 still in violation of JHMC rules. The following day, Badon reiterated her earlier reasons for refusing to transfer. On December 19, 2013, the investigation committee found Badon guilty of insubordination and recommended a 15-day suspension.

The following day, Agbayani issued notice of suspension without pay from December 23, 2013 to January 17, 2014. On Dec. 23, Badon filed with the NLRC a complaint for illegal suspension and constructive illegal dismissal, among others against JHMC, Agbayani, JHMC board of directors, and members of the investigation committee.

The NLRC found that Agbayani’s SOO 29 was unreasonable and unlawful. It also stated that Badon’s transfer was unlawful, unjustified, unreasonable, inconvenient and prejudicial to her. It also declared that Badon was justified in refusing to obey such unreasonable and unlawful transfer order.

The labor arbiter also ordered her to be reinstated to her former position as human resource assistant. As of present, however, JHMC has not yet reinstated her to her former position.

The NLRC found JHMC liable for payment of salaries during the suspension as well as other benefits while it held Agbayani liable for moral and exemplary damages.

It declared in its decision, “….taking into account that the flawed transfer order was initiated and issued by Respondent Jamie Eloise M. Agbayani which manifests a deceptive ploy to inflict upon the complainant an undue and unnecessary stress and trouble, the former should be held solely liable for her unjustifiable decisions and actions at the expense of the latter.

Thus, complainant should be compensated for moral damages amounting to P50,000.00. Considering further the fact that several cases have been filed against the respondent company and was deemed against finding the cause to be on account of Respondent Jamie Eloise M. Agbayani's unsound management, she should be solely charged for exemplary damages amounting to P50,000.00 to deter her from committing the same actions and remind her to make up some improvements in managing her employees.”

On the other hand, the NLRC absolved the JHMC board of directors and the members of the investigation committee from any liability stating that “their participation in all the courses taken in this case were purely in the performance of their official duty without any semblance of ill will, personal motives and bad faith."

JHMC consequently submitted a motion for reconsideration to the NLRC Fourth Division in January of this year.

Badon is represented by Atty. Seichi Ofo-ob and Atty. Cheryl Daytec-Yangot of the National Union of People’s Lawyers (NUPL) while respondents JHMC, Agbayani, the JHMC board of directors, the investigation committee are represented by the Office of the Government Corporate Counsel (OGCC), Atty. Reynaldo Agranzamendez, Atty. Ceasar Oracion, and the Espiritu Law Offices.

Badon was one of seventeen JHMC employees who filed with the Office of the President of the Philippines a complaint against Agbayani for graft and corrupt practices. However, Badon, along with several other employees, retracted their signatures from the complaint only a few days after it was filed. 

JHMC is a member of the BCDA group and is the government administrator of Camp John Hay.