‘LRTA not liable for workers’ dismissal’

The Court of Appeals overturned a ruling of the National Labor Relations Commission (NLRC) finding the Light Rail Transit Authority (LRTA) jointly liable with Metro Transit Organization Inc. for the dismissal of 211 employees who took part in a strike in July 2000 and ordering them to pay P229 million in separation pay and back wages.

In an 18-page decision penned by Associate Justice Marlene Gonzales-Sison, the CA’s 13th Division ruled that the dismissed workers were actually employees of Metro Transit and not of LRTA.

Metro Transit was the former operator of the Light Rail Transit (LRT) Line 1 which runs from Baclaran to Monumento in Caloocan City.

The appellate court noted that in the case of LRTA vs. Venus, et al, the Supreme Court held that employment in LRTA should be governed only by civil service rules, and not the Labor Code as it is a government-owned and controlled corporation.

The appellate court said Metro Transit was organized under the Corporation Code and only became a government-owned and controlled corporation after it was acquired by LRTA.

According to the CA, Metro Transit has no original charter. As such, it is the Department of Labor and Employment (DOLE) and not the NLRC which has jurisdiction over it.

The appellate court stressed that the LRTA cannot be held liable for the dismissed employees of Metro Transit.

“Since the facts of the instant case are relatively the same as that of the above case except for the individual complainants, the ruling of the Supreme Court should prevail. The labor-arbiter never assumed jurisdiction over petitioner LRTA, hence, the decision rendered against the latter was a patent nullity,” the CA said.

Court records show that the case stemmed from the complaint filed by regular rank-and-file employees of Metro Transit and LRTA accusing the two corporations of illegal dismissal.

Prior to the controversy, LRTA and Metro Transit entered into a contract for the management and operation of the Metro Manila Light Rail Transit System.

On July 25, 2000, the Pinag-isang Lakas ng Manggagawa ng Metro-National Federation of Workers Union - Kilusang Mayo Uno (Piglas-NFWU-KMU) staged a strike after negotiations of their collective bargaining agreement reached a deadlock.

The strike paralyzed the operation of the LRT 1 System, prompting then Labor Secretary Bienvenido Laguesma to assume jurisdiction over the dispute.

The Labor Department subsequently issued a return to work order, directing striking employees to report to their work immediately and for Metro Transit and LRTA to accept them back under the same terms and conditions of employment prior to the strike.

However, on July 28, 2000, LRTA informed Metro Transit that its board of directors has passed a resolution allowing the expiration of their agreement and directing the LRTA to take over the operations and maintenance of the LRT Line 1.

The employees alleged that they were dismissed from work without just cause and due process.

The NLRC later ruled in favor of the strikers.