REPUBLIC OF THE PHILIPPINESDEPARTMENT OF LABOR AND EMPLOYMENTNATIONAL LABOR RELATIONS COMMISSION

NATIONAL CAPITAL REGIONQUEZON CITY

ERICK S. SARTE, ETAL.,Complainants,

-vers us-NLRC NCR Case No. L2-L5596-1-3

(Hon. Labor Arbiter Jaime M. Reyno)

BITMICRO NETWORKSINTERNATIONAL, INC., ETAL.,

Respondents.

POSITION PAPER

COXIPLAINANTS, throLrglt tlte L.tnrlctsirlncrl ct,ttttst'1,

rcsl,cctfLrlly sLrbnrit thcir Posilion I'apcl lor Ilrr'L-onsir]t'ration ol llrisHorroral.lc Off it-c, .,ind i1r sLrPpr)ri lh(,re()1, starLr,:

NATURE OF THE CASE

This is a Conrplirir.rt ior constluclivc tlisnrissal filctl lrr lhi'eomPlain.rnts al+]ilrst thc r-csPontlenLs. Conrpl.rin.rrrts prav iirr, arr11,

as uill Lrc shou'n lrcltunrlr.r, art. tlulv enlillr(1 to LlrL'ir clainrs iorpa\'rrcnt of backrla1]cs, rcilrsl.rlcmcni an,.1,,/or' lr.rYDrt nl of sr'Piraliottp;r\, p.rVmcnt oi othcl i.llrp1oYfircnt bcnc[its, nr(]r.rl iDll r:r,.'rtil-,l.rrrtlanr.r11.s, .rrd attolnc\"s iccs ior conrpcllinll tlrr,m to litignl('.rrrlprol(..t lh(.ir i1r t(.r('sls.

THE PARTIES

CorrPiainarls arc errrplol llL's oi Ilitr.rli.ro \ctit orkLrternational, lr.tc. ivho \vcrL- constrLtctivt'Ii r]isnrissctl frot.t.t

cmploYmenI somt'lir.ne in Seplt,nrbi:r 2013. Thc! nt.tY Lre serrCrl rr'illrthc lcgal proccsscs ol this Ilonor.rbli'Offiic throtrgh llrr: irrrtlcrsiplrrt'tlcounsel, u,ilh irrltlrr:ss .,it iho 5rh Lilo()r lntrlmuros Colpor.tle Plaza,

Rcr'ole furs Sir.eet, Intramuros, l\lartil.i.

Rcspon,.1cnt Bitnicro Nr.,tivorlis Inlcrlr.rli()n.rl, ln, (LItt'"Comp,,rnr'" or "Biimicro") is a donr('stia c(rrpoftrtion orgitnizt'il attrlc\istinll rur(ler Philip-pine larrs. lnclivicltral lcsponrlcnls lrlr. StcI,hcnR. Uriartt: ("NIr. Uriartc") ancl I\1r. Zophtrr Santt'("\lr. Santir') arc thcPresirlent;rntl Chief Opcratinl; Officcr (COO), respecrivel\', oi thcConrp;rll', ancl arc inrplc.rciccl in thcir p('rsolr.rl cap.rcitit's itr vit'l'oithe altcrldant bacl faitl-r snrrouncling, llre prcscnt case, as ir'ill Lr,:'

clis.usser.l lrt,reurttler'. Rtsponclents nrirl l)c s('r\'cd rlith the lcgalpro(-rss(,s of this HonoraL,le L)ffiec al thcil o[licc ac]clrcss.rt thL' I(.lt

Floor, Nct S(lLr.rre Brril(1ing, I ' AYe nur. coIrrr.,r' 2Er' Strcr:t, BoniiarioClobal Clilr', Taguig Cilr'.

STATEMENT OF THE FACTS AND CASE

l. In tht aoLns(. of ils br,rsincss, .rncl on yarious rlatcs, thecor'nplilii ranls u,ert hirtcl as onrplovtts of Bilmicro.

2. Plior to thc tinc tlrat thc\ u,cre constnrelir,('l\' (lisnlissc(lironr cnrp]oYr-rcn[, ar)]l-r]rlilil'r.lrts F,r'icli Strrtr:, ]-i,rl rcnee Salazar anJ\ocnri: \1.rkro-Sal.rz.rr hi.lrl llri: rcspccti,,r. positiolr! oi EngLntt,ri r;Dircct()r - ,\CFi, F,irginccring L)irc.lor ,\SlC and Engrrrtcrrrrgl)iri,ctor ,\SIC. I lttl lcLr. .115o p.rrt oi thc ConrP.rnt's IrrojealNlanaqt,nrenl Cornrnittce (l'\1C), or flre l\(,\ nrnDnij('rs t,tslL'.l iLr

overst,e tlrc tiar'-lo-ilar' opcrntions oi thc ( onrp.trrr'. ()n thL' olht'rltiin11, ll.tc othe r eorrplnirr.rnls occufrit,il \,,1r-iou5 l)ositions in thcItt irr,, r'in t D, l .rrlnr'' rl ,,1, l-ilrrri. r',,.

J. Prior to thc 1rrcsent controvers\, tht, emplotees ancl llrclran.rgcnr(.1rt cnjovcal a hi,rrrronious rvolking rt:lationshipr. In f.rat, llrr,onlv contcnlioLrs issue ihirt happcncil 11,1-1,11111' 11:;15 llrc rlclat inri:lcirsing lhe Februan' 2013 sal.rr ies of lhr. em f.lo,, er-.s lor a [t rv t],rls.

4. Thc Presellt colltro\'elsY stenlnlcd frotrl ;rtl it-th.r-r:or1'or'lte

tlisp.ute rr:garrling tht'cotrtrol oi lhc'Cor.n1.,arlr l'r' corlll'r'tirlil i'L' li''ri:of m.tr.r.igr.,ntcnt. Spccificallr', ccrtair.l itltliriclttrlls lri'lorrqitlc to

IJitmic(r NL-trrotks, Irrc. ("8\l-US-\"), Bitrrricro's parcrrt cotrrl.rtrr irthc Unitccl Stirics o[ .'\tttcricit, ttilrllt']r itrclivitlual tcspotrtlr-'trLs \lt's.ts.Uriartr. antl Sanlt', u'crc lt\ ill!, to \\'r('sI aollll()l ilr',.'r t]lL' (itlrttllltlrfroLr lltt'c\isting rlt,rn.tllr'llretrl lrLl b\ lll(' C()lllp,rir\''s Prt'si.llrrl ,rrld

Chicf lr\ccutivc Ollict:r (CE()), \lr. Iio [3r'Lrrt' ("N1r' lSrtrcc").

Urior'tu na Lcl\', cor-rlplititt.tltts \\ cr'(l c.lugl-ll irl t]rc rlitltllt' oi thc

contlolers\', t,hich t'r'ettttlall-r'tcstrllt-rl ill tl.lL'ir.ollstrLralivt'tlisrlliss.rlfronr cmploynr,.'nt.

5. lrr tht'ir' foint Afiitl'rvii, cotrtPlaitratrls Erie l' S'rrtc'

Ld\r'rr'r-rcc S.rlazar antl Nocltrc \1.rtco-Sal.l7.lr 11al-r'.lt(l(l tht' l.rctLtal

iinieced(.nls thdt evelttLti'tllv restrltt:t1 iu llle'ir toustrttciiye ,.1i:rlliss.il

from crnplot ntcnt. Th('ir loirtt Allitlavit rciltls.l-. iolli,u's:

"6. Someiime in the laitei porlion of M.r]'21)13, rve n'cre

inforlnr.:tl by Mr. Rey l-1. ISruce ('Mr. Ilruce'), the Presitlcni anl1

CEO of Bihricr.o, that the PMC u,ill be super.viscrl bv ]vh. Slcphen

Il. Urialtc ('Mr. Uriarte'), Executivc Vice-l)l es iclenL, Cerrcral

Counsel arcl Corporate Secretary of Bitnicro Networks, lnc. ('BNI-USA'), Bitmicro's palent conPany in thc UniLecl States of Amelica.We lealned that Mr. Uriarte was sent by BNI-USA to assist inimproving thc intemal proccdures within Bihnicro, inclutlitig, butr-rilt lir-[itec] to ihe PMC and lhe llngill(rirlg DePartmcllt As such,

Mr. Uliartc shuttled betwcen Bitmicro antl BNI-USA at varioustirnes.

7. Sometirne in the earlv Poltion ol June 2013, t^,'e

rr.:ct'iycrl an oificial arrnouncemcllt lron-r tlle nlallagemenl lhat Mr.

Ilrucc rn,ill be leplacctl as CEO oi IJNI USA.

8. lowarrls the encl of June 2013, r'"'c weLe instrucleLl by

Mr. Uliarie to stop the clevcl()pmenL of ihe Company's next

genelatiorl proclucts. Insteacl, he ittsiructecl us to focus all our'

aLtention in supPol-t of thc uPcoming Product leleases ancl lnilitnr)'proclucts. We complied with his difectives.

9. Sometime in the miclclle of fuly 2013, Mr. Uriarteinstluctecl us io participatc in a teleconference call. Dudrg the

saicl teleconfcrence call, Mr. Urinrte lrcntioncd thirt Lhcr.'will bc a'eler:p cliligence' review to be conduclcd to\Tards the encl oi the

I A .opi, of Lhe.loint Aili(lavit ot comPlainants Lri.k S.rt(', I-a\\ ren.e S.rlazar and Noetr. NTileo-

Salazar is aita.h.i hcrer ilh as -Anncx ",^"

month b)'Mr. Lolenzo Salhi ('Mr. Sall.ri'), who nighi hitrself or

through other Parties, bring in atlLlitiollal invcstmellts io BNI-

USA. Mr. Uriarte sPecifically ir-rstructecl us io'holtl nothing back'

ancl to cliscuss all iechnical issues atrtl Llelails to Mr' Saihi Mr'Uriartc specifically excluded from lhc rreelinl1 tlr(' atlendarlce oi

the Companv's Chicf :lechnolog)' Oificer (Cl()) anrl VP for'

Engineering, Mr. Ilicl<y tsmcc. At lhis Poilrt, we rrotell that M1

Salhi previously worl<eL1 .1s an execulive for a comPetitor of the

Conrpany.

10 At around this timc, Mr" Bruce Ievealecl to us lhat

ihele is an ongoing clispule in BNI-US. Hc revealccl bhat his

lesignation as Chairnran of the BNT US Boar.l of Directors as

o,rrro.rnce.l lo us bv M1-. Urial te - was not true. Mr. Bruce f LII ther

rrentionecl that he was fiautlulentlv removed flom the Boartl

thlough the malcious actiol1s of Mr. Uriarte. Mr. Bruce further

LljscloseLl tllal Lhere ar'e pcntling cases bcFore thc conlPt'tcnt courts

of California questioning the legalitY oI the actiorls iakcn Lrv a

certain group of inveslors-

11. On 26 July 2013, Mr. Zophar Sante ('Nh. Sallte'), the

VP for Markrting of BNI USA, weni to thc ComparlY's officc in the

Philippines antl allangetl a mecting with us- Mr. Uriarte anLl Ml '

Dave Shapowal ('Mr'. Shapowal'), CEO of BNI-USA, iikewisejoinerl ihe meeting remotely via telePhone conJerence. \{e were

informecl that BNI-USA is contemPlating of imPlementing a

lempor,lr\ rclrrttclltrPlll d l lnpol'. a. 'o\ra.llr'n 'l''lnemplovment where the employees lvill uot receive an) seParation

pal'- for the emplove,.:s r ihe I'hilippincs, and lhat ihey alre'rrl)

had a lisi of aLioirlisirative staff r"'ho will be seParaiecl from the

ser'\.ice. Mr'. Sante further rncniioneel ihili lhcY will use lhc

r'anking that u,e pr'eparerl Ior rcwar'cls and reienlion in order k)

gcncrate list oF enginecrs r'vho n'il] likewisc Lrc scParaied From thc

iervice. At this poinl, we trenlioned to Mr. Sankl our con'crl1 th']t

we are not autholized io illlPlemelrt anv rctrenchlreni on oul

or\'11.

12 In the meantime, the schc,-1ulecl corlference urith

Mcssrs. Uriarte ancl Saihi pushecl ihlough on 30 July 2013' ()tr

saicl rlaLe, we presentecl to Mr. Uriarte the letter coning Flom Mr'Bruce reminding us of our uon clisclosure obligations io ihe

Ciompany. MI. Udarte iSnored the letter and inslead clcnanLleLl

that we should respond to all the cluestiolts thai mav Lre asl<c(1

clulin g the' clecp diligence' exa lrlinaiioll. Il o\^'-'vcr, !v-' comPl icd

r,r,ith our unclcriakings in ihe Non Disclosure Agrccnrcni antl tlitlnoi reveal any c,:lnficlcniial inforrration tu Mr. Salhi

13. Our clecision not l(r Llisclosc confidcrrtial iniornlaiioilto MI. Salhi tlirl r-tot sit rn'ell h,ith Ml. Uriarie. llc then attcnlPtcdlo irltirnidatc us into followirlg his orllcrs, csPcciallv to re\'.,11

company secrets to thirtl Parties. fina111', he cartsed undue

clisruPtion in thc oPerations of lhe Company ancl Pulled lhe

rliflercnt tearn learlers fr()m t1r"i. 1r,ork slaLions ir1 order to have a

plivaic Lliscussion. Because of the confusion, Mr. Salhi irimseifclecirlerl not to concluct the 't1eep ciillgence' until the intl.a-co1'porate Llispute has been seitied.

14- In the early po1'tion of August 2013, Mr. Bruccirrfoflr-red us that Mr. Cunanan llas been apPoinied as the Officcrirr Charge (OIC) oI Bihnicro until such time tllat;t neu,Presirlentcan bc appointed. He also informcrl us tliat Mr. Uriarte will nolongcr supervise the PMC.

15. On 30 August 2011, Mr. Shapou,al issued an email tL)

all employees thal M1. Uli.irte is ihe new Ptcsidcnt ol llitrn:.ro.N4t. I]r'uce replicrl lhal he is still ihe Plesitlent of Bitmicro.

16. By i:his lirne, all the emplol,ees of BiLnicro becamecoifuseLl as io which group oI officers and board of rlirectors krfollolr,. This caused unclue work Llisruptiors anrl affectccl tlreclcliver-y of services to the Company's clients. li becarrc appalcntto everyone that the intla-colporate dispute in ihe BNI USA hasbeen forcibly brought to Bitmicro. Worse, it became apparent thatBNI-USA, aciir-rg through Mr. UIiarte, is using the Filipinoemplovees as unwitLing }rawns in Lhe saicl tlispute.

17. The emplovecs'salaries lor the secontl half ol August2(113 were cielayed. The reason prov[1crl \\,as lhat there \,\,as

allegeclly no signatory.lvailable to release thc iLlnds.

18. On 03 September 201J, Mr. Cunanan asscmblcd allerrploYees where hc arnnounceal th.ii thele is no uprlate when oursalaries can be paicl by Bitmiclo as BNI-USA allegerllv failcrl krremit ihe paymcnts clue to the Co rpany. Mr- Cunairan likewisemeniioned the possibility that the Company wili be placerl oncompany holiclay.

19. On the same clate, Mr. Santc also assemblerl thecr,rployees to cliscuss BNI USA'S siLlc in ihc conlrovelst,. Duringthe confercnce, Mr. Sante lari,.1 clorvn ihe Iollorving con(litionsb-.fore ihc crrployees can receive iheir salarics: (a) thc cmplol'ccs\n',i11 not take instructio,rs fiorn Mr. Cur-rar-rar-r; ancl (b) thelingineering Directols will sign il lettel of suppoli in favor o[ thealleged ne\,\, managcrrcnt.

20. Eventuallr,, on 05 Scptcmbef 2013, thc emplovccsreccivccl their salaries for the seconcl half of August 2t113. Whilethc eniployees Ieceivecl iheir salaries lor the second half of August2013, the Company dicl not rernit our conh'ibutions tlue io iheclifferent gove xnent agencies (i.e., the BIR, SSS, I,hilHealth, I,ag-Ibig), ancl pay the premiums clue to the Conrpany's I IMOp1'ovic1er, anLi thus, some employees were unabl,- to avail ol thcirl lMO benefits.

_ )1 On0q5ept.mbcf2dlt.Mr.Br...rr,,..nt,o-..,1,.",.,,n,,,lroli,r,,1 *1r,.1. h,ok c. t-cl o,r lhe ...ri, t .l.,r.. rr,,, il r,, r"pLe.r_;"r j; i',.

2i. --b-e(rLr.,rtlv I e rr, u .r.,r.ag-r r.1. r. Lt J). Vr. \.rr.r,|r,,Ll .' r.'r\r I ,,1, oL.-,r, tl c oif:._ $.,Jr _ l.\r . I )l^t,..H,.a ..r.rLi,rr.,.-.their concerns. Ver.y few ASIC ancl ,fSC'",l.rp1.u""r- *"."ll]Oll-*, :l-,1 .rhe

rreering. We tearnecl rt .l, .r,it-i,,13 tir" :;nijDreeling, Ms. Martorillas le.l a signature .anrpnign kr shoh,sulpori to tlle nel,!, tranagclrent. It h,as also announce.l that tit-.-.rl.rf;,-, r^,I Lr-.1.r,.,,1r ,,r,.t r,.-,.!1 ,,rI1,t,..,f ,.., fr,..\ !^r| _ Er .l.r allc..lr. . e \l . i,.,. r\ (l,r\

23- I, Erick Sartc, was informecj by Mr.. Sar_rte tl_rat I u,as,r,,1 wpl,.,ln-,o. e rr tlrn.Lror.,.n.,, ,,,.r.,,g.

'a'..r'i... 1.,r.tlrc t.r..l Ir:,r ., \.o p nber 201 r Orr.y tlro.i e. rulo....\\ | o -'Br .ltH t( t. cf -ulp,.rt ror .1r..r,..r|n r,..rtl. r.r. rrt *.'r. ,..,i,1Lheil saialies- As such. we rJirl nor receive our sa;fie(

W, ^-ub-cr.ru

,lr J-. ..r-., ll .rt rr_ ?_t,ion. ,..rt(., un,ll,r,i6Cir ,.-ur.,r .1.. Or,jcr i...lr,i.. t rl. . r,1.;, 1,,., ;,,,lr, s--r.rn,e or.r l...ltl,,r. ., J(,.-t ..rirr..,O..l..t.rlt,,,r.i.,.t,*r I

l r tlr- ..1 Lp,r l. h ]lr,|dr. , ,, ,,, .. ,,.i. ., V. r ,,.,....' ,r.1'ul. V d.. .,, L1,r- ,.. r-t..rirr.. 1., -J . tLt..r ,,.., .,E, .;,..tcorrLrol Lo repr.eseniatives of BNI_USA.

, .26: On 30 September 2013, the Company l.etnittccl ihe--rlar'.* -.r" llr. .e,o .r l.rri o[ -pp crnuer ]01 I r r..* al,,irr. ,,. ,.

ll:1" *1.:'q,"J ,rre tet.e. oi \-pDor ror rl. rrea m.rrr,rg. rrr. n!^er( paiLi llrl.ir.Jl."i-- W\..li,rI]ot fc.L.:\. or.r. \..l,rr-e\_

_:7 Ur,,r,,r rlr* -r!\ ,nan.t:,, t1ent. thc t.lcw \. rur \ hu. r,l-rveri .irr-.ru, tH,J ,l.rt ^ lt l. . r rl,l,,-,. _ rr. r, i, r,,..1 irr", r_,proviciell caD enter the office. l.he list rlid not inclucle tlle ASIC

engineers iud the linginecr.ing Directot.s.

_ 28. On 03 Octob(:I2013, Mr. SaDte mei h,iilr thc ASICIFrtBirr.. rrrrp D.te(t,,.. JtrrJ \,r. I.. o .,-Lr. rl.rt t,r- ,,.,. \-rl\ rl,r r ,-.a.,t.:I.!. t.ll.,.rrt,,.rl ,,.rJr.r.h.lll1,..rt\1..,r.-r,r.,,.implemented as onlv six (6) to ten (10) ASiC erigincers will beretained. Mr. Sante nlentionccl that we will be the ones who willcl-roosc these inclivicluals. Ml. Sante further aclmitte.l tl.tat asTleasuler., he is in chalge wjtll the luncl ciisbursemeni anriI'rrrll.o.rcll llr.rLlt. cmP,61qc- wlr. wrrc p.r ,l r,.ir..,l,rr.er "v..nLictenlin( d bv uffice'Doliti.s

29. W" tl..or,]"a tllai on 04 ()ctobci.2[]13, Mr. SaDte hclLl a'P:/,/A )drty .. tl,.tt.l..i L, -.,., I ,.nrJ,,,.-,* wrr..r. ,r,.1 i". : . ,rLlDl\-'r[ h. lt, r'..n n.rn.rg. tn..... I\Ls.,t.l. i.,r,.,iI.. \:/ -. 1,..,.r/\\Ir r g r...-..]].l t..rr ,ltrr .-,rt ,r .\-U,, i,(. - Al.rirr \.

were not invitccl.

30. On saitl clate, Mr. Sante announcccl that the companlholirlay has been lilicrl anrl the emplovccs arc directell toinrrretliatelv repori ior work. Unlortunately, u,hcrl thc ASIC andASG employccs (inclucling oursclvcs) tried io repor.i for rvorl< on08 October 2013, the new security guarrls refusecl their cntr.\, to theI l.v.. er rg *.,r\ ..'p.1. I .r-.,t. u. *ere r. e,rir..tr'. t,. tlcllccreation Room where we \ /aited for Mr. Sante.

31. In our meeting, Mr. Sante infolmed us that thcre is nogualantee that the Company u,ill be able to pay our salaries, an(lwe \^.ele instea(l askecl to iake a leaYe of abser1ce it1 tile lrcalttintennrl just coilsumc ou1 exisling leavc cleclils.

32. On thc salne r1av, Mr. SanLc Llemanderl thai an upLlatcIor all the upcomjng producis of the Comparly. lle alsomeniiorlcd that Ms. Martorillas u/ill lrow be the ncu, Heatl of thePMC. lhcreafler, Ms. Martorill.rs irlformc(l us that th(,enginccring clireciols ancl mnnagers \^/ho userl kr lcacl tlte ;)1ojs115(inclucling oursclves) were alrcarlv replacea{ nert, managcrshandpicked by the new I-nanagcment. We tlemantltcl that the newmanagement shoulcl issue a merloranalum regarcling ourclcmotion blrt thev retused b do so.

33. On 16 October 2013, ancl afLer rnuch clelay, ra,,e tinal11began to receive our salaries, this time for ihe first half of C)ctober2013.

34. Olr 20 Ocbber 2013, Mr. Sanlc invit-.!l us for a

meeting at his office. During thc nreeting, Mr. Santc insit ucLcll Lrs

to take a forcecl leave oi absencc u,hilc Ite n,as illlege(lly.rsscrlinghis influence and auihotitt (^,cr thc cnginet,ritllj gl()Llps. llelncntioneLl thai wc were'r,er't inllucnti.rl' lo the ollter etrplol.ccs.He ner-riioneri that u,e will iust Lrc rrotiiiell u,hen \,!,e carl rctuflr to\,,/olk. Starting thc saitl c1ate, wc r{,clc not allo\'\,e11 to eDicr thcoffice plemises.

35. In view of our colisbuctive clismissal frontemployment, sometime in ihe latter po1'tion of Ocbbcr 2013, 1.,e

filecl a Complaint for illegal (constructive) clismissal against thcComP.lny Lrcfore the National T-abor Tlelations Cornnission(N1-RC).

36. On 02 Deceurber 2013, we receir,etl text mcssagcsstaling that wc arc r,lirectecl to rcpori For h,o|k thr: lollorn,ing rlar,,03 December 2013.

37- As insirucLerl, r/e reportcll for wolk on 03 Deccmbcr2013. We were initiall,v mei by Messrs. Elrvin Salazar.(rvho u,asrccenlly promoiccl to L)irectol ol Firgineering) anrl Marlon Vcrclan(a l-nnrlpickecl ASIC Marragel clulir-rg ihc pizza pariy) for a

brieting. They mentionell that since on1\, a hancllul of engineers

ara,n('rrl(,Ll ior su1.1.r,v1, rlc l illonlr L.c giren i.rsks to Lre.rsslgrrr,Ll

irorn iime io timc. Thrl stelcrl ihal !\e lllouLrl iusi kel.p LrLrrsthr,sblrs! in the nreanli]lre.

38. Since the saicl date, while we are repolting for workirr tlre office, 14'e are not performing any procluctive task that $,e

l{ere pre\/i()usly pcrforming for the Company. lnstead, u,e alebeing bypasscci as some oF our pcrsonncl .rlc being managerlrlirectlv b1, Mcssrs. Salazar anrl Vcrtlan. To keep ourseh'es busl',rl,e just spenll the day siurlYing anrl iraining individuallr,."

6. Thc .rLrovc-(luot(.(1 sldl(,nr(,nts \r'cr(, rorr()Lror.r[('(] Lr\

co]lrpldilr,,ilrls faylortl Pinili, Jolrn CaIlo Ldrd, \cPOmuceno Fr.urco Il,Ern.rntlr.r Alii:l Ljan1lirt.rn, lkrnrrnr:I Ltlillor.rna .rntl -\aron ]arCabLrlinrl. Sl,cal<irg on bchirlf of tlr(' r('st of ihc,.:onrpl.rin.rnts l'lrolikcu,isc- sul'li.r't rl il(rts ol rlisclinriniltion .rnLl inscnsilrilill in lhi: h.rnrlsof the responLlerts, in ll-reir' f oint Afiiclavit,r lhel tc,stified irs i.rllo\.\'s:

"1- For the most part, we were kept in the ciark as io lheexistei.e oI the saiLl irltra corporatc disPuic. I lo\'\,cvcr, bellinnirlgin Allgusl 2013, a cor-rlluer-rce ol ever-rts broltllht the ir-rtra-corporaledispuie righi ir-r fior-rt of ihe Lloolstep ol the Companr n,hc|rrepresentatives of BNI-USA, i.e., Messr-s. Stephen Ii. Urjafte ('Mr.Uriarte'), Llxecutive Vice-PresiLlent, Ceneral Counsel an(l CorporalcSccretar), of tsN1-USA, ancl Zophal Sanle ('l\'1r. Santd), thc Vl' iorMarketing of IJNI-USA, il.ieLl to asserl contlol orcr the Clompnn).

5. Specifically, sornetime in the latiel poliion of August2013, Messrs. Uriarte.lnd Sante auived at tjle Compan],'s o(ficeancl demar-rdec1 that the employees shoulLl recogr-rize the newmanagernent, ancl that ihe employees shouLi no 1or-rger r'ecognizethe old management led by Mr'. Bluce anel Mr. Cilbelt Cunanarr('Mr'. Cunar-un'), the formel lJlogr.ul Manager of I:litmi.ro. Silrcelhe emlrloyees aire not privv to the conh-oversv, lve chose lo romainncLrtral lest we be caugllt in the crossfile bcir^/een cornpctingfaciions of rranagernent.

6. Unfoltunalely, our- salalies ioI the sc'concl hall ofAogust 2(ll3 r'r,ere clel.ryecl. 'llrc' rr..asLrn provitictl nas that thcrcwas no signalory availablc rvho can rclease lhe funcls. \{,- surmise,hoWcvcr, that lhe delay was causecl bv the intra-aorporalc dispLrtc.

7. On 03 Septenber 2013, Ml. Cunanan assernblecl allenrployes5 where he announceLl thal there is no upclate l,hen oursalaries can be paid by Bihnicro as BNI-USA failed to remit the

A (op\ ol lh. Itirrl \i idn\it ol .onrfrl.rin. rtr l,i\ r],(Ll '.rn..i tl. lru.ri(, ,\rLl llif$r\,rn, ltofrDe l-.lillo ,rf.

Pi,rili, lohn f'.rrIo l.ara, Nepon,L,ccno.nd Aarcn l.y C.bulinS is,rlt.r.hcil

paymcnts Llue to il-ie Company. Mr. Cunanan also clisclosecl the

possiLrilily that ihe Compan\/ mighi be Placecl on coinPalrv hoiiLlilY

clue io Lhe unavailabiliL]' of funcls sufficicrrt lor lhc continrrctloperations of the CunPany.

9. On thc same t1;ttc, a ielephorlr' confeLt'rtcc r'r'.rs

arrangecl by lhe rlcu, rranagelllcni io ci.rriil ihe lensolls l(rr lhe

Llelay in our salaries. We wcrc inlorrlled lhet thc nc\^' ll1anagei1cnt

r,r,ill Ielease ouL salalies ploviclcrl tltt 11rs lro longel recognize ihe

o1L1 nanagenrent. Our Engincering DiIeck)rs were lil<ewise

insiructed to sign a letter of suppolt in lavol o[ the r-rew

management as condition for ihe Ielease of the luncls f,.rr- lhe

August 2013 salades, notwithsiancling the penclency of the intra-colporate clispute. We u,ere appallecl ihat the new lnanagemeni is

usirltj our harcl earnecl salaries as lcvcralie to girthcr suPpol't.

l lor,r,ever, since we wanteLl to maintaii our neuiralitv, ourEngineer-ing Dilectors LliLl not sign thc lciter of soPPor t.

10. Ott 06 Sepiember 2013, we leceivctl our salarics iot

thc sccond hall of August 2013. I kx,r,ever', thc CornPant'elitl nolremit our contributions (luc t() tl1e tliiierenl govelnnlent agcncies(/..., the BIR, SSS, PhilHealth, Pag-lbig) anrl clirl trot pav iheplcrniurrs rlue io the Companr"s l lMO Pro\ ider'. As sucl-r, r'r'e

1e;t1ne.l tl-rat sotne employees failecl to avaii oI thcir HMO berlcfits.

11. On 09 September 2013, we lealnecl ihat Mr. Bruce

imposecl a company holiclay ancl we n ete atlvised that cven if r,ve

are not requireLl to report for work, we will still be receiving oursalaries when ihe funcis become available. The saicl corllpallvholir,lal,was eveniually liftetl on 30 Septembcr 2013 \^'hcrr thL'newmanag(1nerlt \{as able to obtain a ielnPorary restrailling order(TRO) from the Coult againsi the oLl llranagemenl.

'12- C)n 13 Septcnber 2lll3, wc atienelecl a eer'lt'r'al

asscmbly helcl at thc Max's IlestaLrrant, rvhich w.rs lc,.l br Mr.5anlc.We were infoflrcci ihai thete wert at least three (i) t)('viousrneeiirlgs that werc hcld, u,irich u'c lailecl to atten.l bccausc'of lack

of frrior'notice. Wc were inforrttccl thai thosc clrPloYees r,r'ho failedto atien.l ll-ie meetings will be cotrsitlered on lcave oi abserrce

,ithout pay.

13. On 15 September 2013, the Cotrpany remittecl the

salarics for ihe first half oI SePternbcr 2013. We noterl, hou'cvcr,that only the selecl ernpk)yees r,r,ho sign the letter of suPPort irr

favor of ihe nern, rranagcment lvere pai.l iheir'srlarics. Wc tlicl llotrr.ceive orrr sa l:rries-

14. We subsequenLlt' lLtalned that tllc na\\' Irarl.lgLlllrclltrlirected ihe employecs io sigr, a elailv aiterlrlancc shcct lo.atcd at

the 7-Eleverl SLorc at the Nei Scluarc Builtlirlg irr orLler k) rcccivctheil salaries. IIowever, consi(lcrinll tl1;tt ])rost ()l ihe emPl()\'ees

have yet to reccive any salar'y lor almosi one (1) rrorrth, some of tlle

emplovees i\rere uilable to cirmpli, h/ith this ]1ew rcquirement as

lhev haYe no funds to spend for tr'allsPortatiol and mcals.

15. On 30 September 2013, the Company remittecl thc

salalies for the seconcl half of Se;,iember 2013. Once agair-t, onlv the

select employees who signed the letter of suppoft Ior thc nelv

m.rnagemcnt wele paid their salaries- We dicl llot receive oursalaries.

16 We learncl1 that on 0.1 Ociolrel 2013, Mr. Santc hclLl I'pizza palty'attcndell tr), select clrPloYees n'ho signetJ thr.'lcltel oisuppolt for thc neu/ mana6lement, plus atltliiional fivr' (5) selectecl

ASIC engincers anrl ten (10) sclected AS(! cngir-roers. !{c u'erc not

invjted to aitenLl ihe said partv. Wc lil<eu'ise learncrl iltat ihoscwho alienrlecl lhe sair'l party rverc paicl th('ir ScPiembcr 2t113

salaries, lr,hich wcrc given ihrough checks issuctl bv tht' llank olCommer'ce.

17- Undel the ne\{ managemenl, nelv secrrr-iiY gual-cls

wcre cleployecl ancl were i1-6Lluctecl thaL or-tly selcctetl emp1o1'ccs

cnumerateLl in a ljst provicled will be allou,ed to enter ihe otlice.

18. IJventually, all emplovees were rlircctell to rcPort forwork beginning on 08 Ociober 2013. Horn'ever, sillce our nanles

were not inclucleci in the list provitlctl io the sccuritv guarcls, u'e

\{ere not allowcrl to entel our n,or-kPlace. insteaLl, u'e wel-e

reclireclerl lo ihe Recleation Roo[r Locatet] al the 19t' Floor of ihe

Net Scluarc Buil1ing l{hefe wc \,\'e] c lrrct bt' Mr'. Satrtc. Mr. Sdntc

infolmetl us that if we /isir lo rcpori i,:rL u',.rrl<, r'r'c nla\'llo so Lrut

there is no guarantee that r'r,c will be paicl our saiatics. llc instcil!1

rncntioneLl thai we may take a leavc of absence insteatl, if l{c1 ,antecl, Lrui \\,iil-rout pay.

19. Tt was therelore clear that 1\,e are no 1L)nget welcome

io wolk for thc new n-rana5;emcni ancl that they want to lay us Lrll

without provicling a1ly mutually acceptaLrle severancc PackageSirnply put, the employees who dicl ttot manifest lheir suPPort tolhe neu, rnanager-nent (espccially tliose who Llid llot sign tlle lellcrof support) are being forced io resigu f|orn ernPlo\rlrerll.

2l). Because of ihe insensible an.L dis.rirrlinaior'\' acts

colrmittcd b), the new LlaLlallement of Biimicro lccl bl Messrs.

Uriarte anLl Sante, sornctime ir-r Ocblrcr 2013, tv,.: joirrctl tl'lc lesl ollhc tliscriminartetl emplo)'ees u,ho lilc.l a Ciruplairrt for illegal(conslrucLive) dismissal againsi the Corrpanv belorc the Naiicrtral

T-abor Ilelations Cornnrission (Nl-RC).

21. ln ihe meantime, on 16 Octobcr 2013, ancl after n-iuch

delay, wc finaliy began to leccive our salalies. Howevel, we ditlnot receivc our salaries fol September 2013 on the same Llatc- lnfaci, some ernployees received thcir SePtembet'2013 salaries orll)' i]lDecember'2013, while some recciveLl iheir SePtcmlrer 2013 salaries

(]rl\ in ].rrLr.rr\' 2l)11.

12. I\'t'scrrtlr, nhilt rr,-' ,rre r.|()riirrg ior lolk irrl tht'

Cr)mp.rL1\', \\'illr lhe.x.cpii(xr oi n ic\r .rllL-rtL'(J ('nlfl()\ees, lll(rsl ijjLrs \\'cIC rlltr'r'l! Llircctcd to \\'iit i()r insIIIr(Ii{IIIs lr(rnr ilrir rl!r\rrrr.lrli:rgenl('lll th.t mr\ Lre gi\ rlll ir()nl lirrre t(r tinl. LlrriL)rilrrr.ll!'l\ '

\\'. nr. {)nl\ L.ring gir,-'rr t.lsli\ lh.i.l['rrrrtritlc lllr- sro]),'Lri LrLrl jrrt'

rlr'saripliorr. \\'L,L-sc, sorttt ,.'ntllrr\ L'r's \\ r'rr' (r\ r11 rt'l()r lirril l(ir !\ ,rrli\\'ith rlothing else to (1o."

6. I3ec.rrtsc of ihe abttvc st.lted .lcts clcar r.liscrirllilratiolr,insensibiljLr ot rlisdain, as ivt'll as thc otrllillht tlclrrrltirrrr ;rrrl\'vithholding oI sillalics and beucfits strffcrecl lr-v co lll plil illill-r l\ ;rl flrr'hancls of ihe 1.rew r'r'rilniiilcme ni lecl bv irtclit iclrraI lesfoll(lenLs Nl.'ssrs

Uri.rrte ancl Sanli', r:ontl,lainalrls iilc(l tltc pr!'sclrt cilsc oI ill(]1jill

(constlLrctivc) clisnrissal.

7. Eilorts lit artivc ul ittr .rtlriL-aLrlt' sclt]('lll('llt bt'ltrlt' lllisHonoriil,le Oiiir'1, plolL'rl fLrtile. -l'ltus, the p,rrtiL's u't't'c rlirt'clt'cl Iirsinr u ltan<rrrslv file fhcir l.(rspcLtivt' l)ositiLrtt lllpt'r. l lcrlee, tllisI)osition Ptrpcr for ihc conrpl.rin.rnls.

ARGUMENTS

I.

COMPLAINANTS WERE CONSTRUCTIVELYDISMISSED FROM EMPLOYMENT.

I I.

Col\{PLAINANTS ARE ENTITLED 'l O PAYNIEN I OFBACI(WAGES, REINSTATEMENT AND/ORSEPARATION PAY, OTHER MONETARY CLAIMS,MORAL AND EXEMPLARY DAMAGES, ANDATTORNEY'S FEES.

I II.

INDIVIDUAI, RESPONDENTS MESSRS. URIARTEAND SANTE SHOULD BE HELD SOLIDARILYLIABLE WITH THE RESPONDENT COMPANY FORALL OF THE COMPLAINANTS' CLAIMS.

DISCUSSION

I. Complainantsrrereconstructivelydismissed from employment.

Tht,Suprt:rrt: Court h;rs hclcl that wlrcn thc conrlitions in thr.:

ilotkpl.'ice.rtc ri:ntlcrt rl inrpossil)lt l,t' llrc r.rrPlolr.lr'so.l5 Lo l('.r\'(,t]r(,elrployer, rvilh no clroiL-i' but tr) tclnrinirt(. l-ris r.nrPlor rrt.nl, suclromplovec is tlcr:mr:tl kl havr: Lrr.:r:n clisnrisscrl fronr cnrplovnrr-,nt. I'lrisis thc esse ncr: of tlrr: rloctlinc,or-l c()r'rstrua ti\'(, rlisnrissal.

C()lrstlLrati\'(, rlisnrissll or' aonstrLrcli\ (. rlisclr.rlqr, lr.rs lrr.eirclclinctl .rs .r quiLting br.'c;rrrsc conliltuccl r'n.tPlor r.tterrt is lt,r'rtir'rctlinpossiblr:, Lrrrre.rsonable or trnlikelr'.r C.olrstrLrcLi\'r. alisl.nissal e\islsas .ir.r invoIunt;rrv rcsit]1r.rtion on thc f..rrl of thc cnrplovcc rlLrc to thclaslr, hostilc ancl Lurfaviual,lc conrlitions set bt, thc cnrplor, cr. it is anaicl .rmounting to rlismissal but nraclt: to appc.rr as i[ it rvt:ri: nol .r

ilisnrissal in tlislluisc.r l'hus, lhcrc is constnrctivc clisnriss.rl rvlrcnlhcrc is an act of ck:.rl rlisclinrin.rtior-r, inscnsihililr or rlisrlain on tlrr.|-rt'tt l of tlrr: r'nrplor r.r' l, h it lr has bc( onrt, loo rrnbe,r r .r blr, ,rs Io lrrl\ r. .r]r

enrPJglgil ilith no L:]roict, brrl lo ftrrr,go conIirrrt,t] r,r'l]rlot nrcnt.' llrt'{alrg(, l()r' a()lrstnrLtivL. ,-lisriissal is rlhctlrcl a reasonaL.lt, pt'r:on irr

tlrc, tlrployte's Posilion rvoulrl lLrcl conrpcllctl to qirc uf hiscnr l,lov nrt,n l rrnd t,r lhi: p rt.r a ilinll ( il.aLuls l.l uaL.5. '

As shorr,r'r .rbole, tlte fitaLs ,,lnal ailcLlnrslanaes ol llrer c.rst,

dcfironstr.]tc LhaI lht, yrrtscnt casc is a tcxtbook r-'ranrplt' ol a iorcer]cluilting bcctruse thc crrrplovcr has rcndcretl continrrcrl clrplo\'nrcrlto bc, impossiblc, Lrrr(..rsonablL- or urlikclr'.

firsl, thc nc\! nl.r'r.rpJ('nrcnt of thc (lolnp.int, Llnrlcr thr.sl(,\\,ar(lshiP of l\lcssrs. Uliartc dnrl S,nt(,, h.r(1 tollrrnitlt,rl .r,-ls olclisr riminatiorr, irscnsibilitv anrl ,-lisdain, u,hich w t,rc inie n,.1r,Ll Lrr

conrpel lhclompl.rinants to forcgo LorlinLrc(l cnrPlor nrcnl.

r Srd I'hilippnrc Iapan A(tive Carbon Corporation v Naliural l.bor Relniions (lomnrission, 171

SCIIA 16.1 (l989); Suldao v. Ci.rech Syste.r Cofstr uciion, hrc., 506 SCRA 256 (2006)I Aguilar v. BLirger Machnle Hol.lings Corp., 506 SCRA 266 (2006).5 Soliman Securily SeNi.es, Inc. v. Court ot Appeals, 38,1SCRA 5la (2001). Siemens Philippines, Li.. v. Donringo, 560 SCRA 86 (2008).

h [lrlrr,i,/r: .Srl/r's l\in'rlrorrsc L.lilr r'. N1 /i(.,: tlri: SuPrcmc CorrrlproYiclctl thi: forcgoing tcst to dL,tcrnline tlre existencc ol ( onslrLleii\ o

rl isnrissal:

"Thr icsi ()l c()nsilucli\L, tlisrrrss.rl is \\hrlll.r. rr:.r:L,ueLr]l'

prrson in Lhc erttplolct,'s pLrsiliorr rr,rLrlcl h:rrL' lclt ci,url.c'lLe.l tL,

gi\'c Lrl) hir posili()n un!l(,r thc ei|t unrsLrrlrr,s. lL i5 ifr .rat

n I(j!ntin!l hr rJisnriss,rl btlt nl.rrl(r t() rfrfrrilr .r5 ii it \\r'tu' r,,t lnt,rct, llrc,::rrrflor,.,r'\\h(jis.(jrrstru.li\'.lr 11i:rlisrL'tl nrar lr..rllouL'rltir kccf (rn colrln!. i() \\'r)r'k Cr)nstrLr(ii\'r, \li\rr)i's.rl i! th!'rrl()rr .r

riisnrissel in .lisgrrisr. llrt' 1.rn lr'cogniu r's ;ncl rirsLrlr r: llrissitLr.rti()n in i.rr or- oi empkrr ccs rr orrlcr hr frr)t('at lh('ir rillhls .rrrilintcrcsts irom th(r a(nrrciYc .rr ts (jl iht trnPl,^ t'r'."

Applvinll tht: fori:11oin11 tcst to the preselrt..rse, il is cviLlcnl th.rttlre conrplail.rr.rts \'\:r-r'c ror.rstructir,ilt' clisnrissc,-1 fri:rri t'ntplot nrent.

Anr lt..tsona[-,lc pcrso]r \vl.ros(, s.ll.llics \\'crc Lurrlulv uilhlrr'lcl .rrr.1

rlelaYetl, r\'ho i\,as cornPellr-,tl lo rrrrr-lcrgo il f()r'cr'LI l('i'l\ c o1 .lbs('n(eu,ithout p,lv ancl lithout ilrl\ \illi!l rc.rsort, itnrl \\'h() \\',is sttbit'ttt'cl loa scrils of acls oI h.tr.tssr-nt,nl .rnr] rlisct-inrinalirrn Lrr'caLts,' olpcICeiVe(l lot.rltY to the ol.1 ntanager)r.'nl, \\'()Lrlrl h.tr e L,t't'n

co]npcll('(l to riiYe LrP his ;,ositiorr urrrl,.'r'tltr'r-irL-unrstanrt's ol lhL'

c.,l5t.

Srcold, tht: rlcrrrotion of complainanls Flricl< Saltt', L.r\\'rclrccSalirz.rl ancl Noenre r\1ateo Saltrzar, n'ho \\'err Llr-rccr'('nronioLlsl\'

removell frtrm bei;rg rnerttbels ol the PN'IC, .ln(l \\'h() !\'er-e L)\ PilsscLlirs Erlgirleerin!! Director s [r1, nl6re juniot m.]naljcrs (i.r:., Nlessrs. li .r'itr

Sal.rzar anrl \[allorr \rcrrlan) rvho aLe rrou' c]irc,-tlt man.ruing tltt'ir-IesPeati\ (. tcir|ns, .lfiloLllrt(]11 lo constrLrcli\ e rlisDriss.rl.

ll is .irionralic th.ri Llrere is Llcnroti(ln trIren att emplovcc. is

.rppointcrl k) ii positiorr rt,sulting kr a diminution in dutiesresponsibilities, status or rank which ma or mav not involve a

reduction il salary.s Dt,nrotion inlolrt's .r situation in ir'hir-h an

crrrPkrYci' is |r'lcllatctl kr a suborclinatC or lcss itttfiortatnt fo:itiorlconstituting a rt-clLrction to a lorrcr gtarlt'or rattk, rvith a rot.rcs;-rrrtttlirlg

tlcclo.rsc in tlulics .rral rcs[)onsil)i]itics.'i

r 547 SCRA 220,216 (2008).$ BautisLa v. CivilSeNice CoNnrission, G.R. No.185215,lLrl 22,2010.e l inio v. Cour t of ADDcals. 521SCl{A 533 (2001.

Ir.t Nolkls 'l'r itr;q CLt., lttc. t'. ('ttilo, L) tll(' SLIPl.e lllc Corrrt has

ru1c,-1 Llrele ist:onstrilclive Llisrlissal \\'hc1r ittt otllPlovce ll,rs Lrt't'tl

lk'tttotecl ftottr ltis forttrer positirttt, its u lrctl lllt'rc is a ri'tlltttir.rrr irl Ilisr.1utit's.rnrl lt:s ponsi[.ilitit s. lhLrs:

"ln this case, wlile the transler of Iesporrclurt from C|eclit arrtl

Collection Manager io M.uketing Assisiant clicl not resull jll the

recluctioli of his sal;uv, lhere was a reduction in his cluties arrr'l

respol$ibilities which amountecl to a demotion talltamount to a

constructrvc disrrrissal as correctll, held by the NLITC and the CA.

A conpaaisoll itl the nature oI r'vor'k of thcsc Lu'o l-rosihons shor,r's a

grcat clifference. As Crerlit anll Collection Manager, resPon(lcnt \\t1s

clotherl with all the rluties anLl l:esPonsllrililies of a m.rrtgeria1elnployee. He coulcl rlcvise ar-ie1 implcrrcni actioll plans k) meei his

objeciives and exercise inclcpentlent juclgmerri in resoh ing protrlenlaccoullts. llehad lrowcr amd conlrol over NICls, Ilranch ConhoL

Oificels (l3COs) aml Cashiels unel:r his supelvisiotr, an.l he ;.r-ovit1ctltllern hai[ing iD ihe pelfor'mance ot their resPeclive wolks. further,he h;rtl the authority to eisure Ieserves iir the NlCs, LICC)s ancl Cashielsir-r case of exparsiou, reassigirnent ancl/or termination. There is no

doulrt ihat said position of Creclil ancl Collcction Manager entails greal

cluties ind responsibilities and invoh,es lliscretionafy powcrs. In lact,

cven in peLitionels' pleaclings, tl-rey repeatecll,\/ stated thal lhe positi()n

ir-rvolvecl a high degree oi respor-rsibility rcquiring trust ancl conJitlence

as itrelates closely to the filurcial intelest ol the corrp;urY.

C)r-r the other hantl, the i,volk of a Marl<ciing Assislant is clcrical innatule, which docs not ir-rvolve thc cxcrcisc ol arrv cliscrclion Sucl, job

entrlils rnerc dala gathering or-r vital markctirtg ini,:rl tra tiolrs rele!ani k)

petitionels' molorcycles ancl nrakirrg ref.orts L(r his dilcctsupelnjsor. I L: is a mere staJT r'r'rernbcl-ill the oiliao of thc Senior Vice-

Presiclcnt for Marketing. \Mrilc petitionels claim that lhe Posilion of a

Markcting Assistant covels a h,ielc arca as comparcLl u,ilh ihe Posiliolrof Cleclit ;rnrl Colleciion Manager, the latlet is reposerl wilh manageli;tI

cluties in ovcrsecing petitioners' busirrcss in his assignccl area, ul]ikeihe folmel in which he melely collatcs raw data. 'lhesc t\{'o Positiollsare not of the same ievel of autho ty.

There is conshuctive disnissal lvherr aLr cuPloYees FLlllcii()ns,

whicl-r r'ver'e oliginallv supervisor'Y in natllr-c, rt'er'e r't'tlucccl;arl,:l such

reLlLlction is not glounclccl on valicl g'ountis such as genuitlc business

necessiLy."

ro C.lt. l5tl730, Feb. ll, 2008.

II. Complainants are entitled topayment of backwages, reinstatementand/or separation pay, other monetaryclaims, moral and exemplary damages,and a ttorneJz's fees.

-\rticlc 279 o[ lhc L.rbor Co,-le Provir-lcs that arr r:nrPloyi,c rylro i:runjustlv rlisrrisse,.l Ir'orri u,ork sh.rl] Lrt L,ntitlcrl to rcinst,rlenrcrrlivitlroui loss of sr'r-rioritv rights antl otltL.r prir il,..gcs ancl to ltis itrllbackrvallcs, inclu:irt,oi.rlkrl.rnces, anrl to Iris otht.r lrr.nciils Lr. llrcirIrolrct.rrY cclrrirtltnt compLltc(l irorr tlrr. tinrc his t-oDrPr.nsitr()r \\(r:Withht.lrl il1rnr lrinr ufr i() th(,tinrc Lrf his n.tLr.rl rcinsL.rt|r]r(,nt.

ln tlris easc, it n.rs frovt rr througlr sLrL)st.lrLi.rl cvidcnLc lh,it ttrcaorlrplililrar.rts \\'(,rc colrshuctiYc[t rlisr.nisscrl IroIr rrtrgrlor trrcnl.Accorciingh', the\.art, ullilltd to thc tt,iri rcmc,-lies o1' p.rlnri:nt ofL-,acktlagcs and reir'rstiltenrerrt to their folmcr' |osition, ol oi thclc is

strnincrl tclatioltsl.tip $p11ygi]11 thr: partics, p.r\,lrrcnt of scl)irr.rtit,r [].r!ctltrivalcnt Lo llr('ir onc (I) nonth's p.rl ior c\'(,r'\'\ (..1r'()f tcr\ i.r,.l

R(,ilstaltemcnt rcstor('s Il](, (,ntPIo\ (,r' l hrr u as Lrnjrrslltrlisrrrisscrl to thr-. posilion lxrn rvhirh hc ir',rs rcnrolcrl.Lr On tlrr.othcr hant1, backl'lrgcs is.r 1-orm Lr1 r'elicf lhat r(.5tor(.s ihc ina()nl(. ilr.rtt'as lost bv rc.rson of tlrr' unlarvfLLl ,.listrrissal.rr

'l'hcse twirr r,.,rrrt-clics - rcinslatL,nlt,ltl antl p.rvlrt,lt ,..r1

bacLr,,ages nral<r: tlrr.. clisrnisstcl emplot cr-, tvltole again, tvhLr eanthen Iook forrvarrl to cor.tlinrLr-.cl cr.riprlovnri:nt. Thus, thL:sc [u,irrcrrrr-:clies giYC nrearin[] anrl substancL: to tlrr. constitution.rl r'iglrl ollabor to si.curiti of terrrrrc. Thc tivo foIr'rs of rr:lit:f.rrr: rlistinct.rnrlsep.rrdfrr, one Irorrr tht. ol]rt:r. llrourllr llrt' rlrnnt oi It,inst,rltllrt'Dt(:onrln()ltl\ r'arrics t ilh it .rn .l\\'illrl rrl bacl<rr',rqt's- thlir'ri,lPpr()pri,,ltcncss or non-ar,.ril.rlrilit_r'ol or.tt,r.lot,s Liol raIr'r rr ith it tlrtinappreplj;1111q15s or non=rr.rilaL.ilitl ol lhe olhcr I

Conrpl.rin.rnLs .rrr. likt,w ise cntillcrl lLr p.r\ nrclrt of nror..rl antlcrcnrfrl.rrt d.rnraqes. To ivan-ant thc .rrvirr-tl oi nroral .rrrrl i,rcnrf,l.rrt

I' A copy oI the ttlblc outliniDg the complainaots' respective lerrgths of tenure .1r)d Lrst snl.rry rat.sis auached herewith as Annex "C"

'r Santos v. NLRC, C R. No. 76721, Sept 21,1987.tl Buhair v Court or Appoals, 383 SCRA 602 (2002).IL,a'rq^i-rrA A7rr.rNrr _fHriI ARdFa.nFu,rrHanNr\rEN,Tc^N.ar<Fc7 a/rao.l.,l)

clanrages, the act oi an crrrplovcl in illcgallY clisrrrissrng ,,1

lernlinalir-rg an r'rplovcc must Lrc.rttcnclccl b1, bad iaith, iraLrrl orconstitu[('i]n act opplcssiVC to labor or in.r manncL th.rt is contralY tolarr', ntotirls, goorl custonrs, or prublic polict,. Thus:

"Nli,r'al rlarrrerlcs err: ri'crrr cr.rlrli' onll rr h. rc thL tlisrnisr:l oiilrt,t-nrf.hree \\nr.rtl!,n(1.(l Ir\ I.iJ t.rjth (lr ir;llrl, rrr a(irstilLrt(rl ,rn

,1al oPl)tr'ssi\r i() lJLn)r, !)r rr.r: rlLruc irr .r rll.rnrrrr r(rlrlr.rr\ rr,

rrrtrrals,,:ooil rlritonrs !)r pLrL,l , 1, I , . I ',, rl.. .1. nr.r,,, s rrr Lri

,r\'.rrLlcLl 0l]lr ii ilie.lisltrir\rl \\'n5etlrctt(l iI .r \\ rnt(,l], (jIpf!ssi\ !Lrr m.rli,r o tnt ])itr nr,t." i

Beenusr: of thc i:aplicious ;rncl lrich-handtil nt;tnncr, xnti-lalrorartc{ oppres5i111, frautlulent anal in utL(.r batl faillt itclLl.tliolts oll

tesprontlcnts, cotnpl;rinants sLrI[ere(] LrL.smirchetl repulniiori, soci.rlhunrili.riion, ;rrricLr', r-estlcssrcss anrl slccplr:ss nillhts, .rnrl pl.l.c(1 .llrinrlr,liblr, nraul< ir.t rvhat uscrl to be p1-e111j5111g .rnrl skt rocl<ctirtr,,careels ir'r Lhc CC)mparrr'. Lich coDrPl.rin,rnt is t ntillt,r{ fo nror',rlrl.rrritg,.'s in lht, alroLlnt oi no lr:ss t]ran IlrrcL' IIrrnrlrctl IlrorrsanrlPi:sos (1r300,000.iJ0).

Frrrtlrerrrori:, conrPl.rin.rrls shorrltl Lrr, ltrvarrlt,.l ctclrfll.tltrl.rnr.tgcs in orrler to rlctcr othr.lr cnrplolcrs fl ol.lt .t(l()pling silttil,llr.levious at:ts .,rnrl serve ils .in e\alrple to thc pLrblic thdt no m.rttcr11e11, por,,,t:rfrrl an rml,lovcr nriilht bc, it shoLrlrl lollorr,tht.r.ulc of l.rr'.Also, public policv rlictatcs that the l,anton anrl nr.ilr.,r. olr-.n[ ;rtLi[uclocott.ln-rille(l bv rcsl,oncll:nts shoulci Lrt srrppressetl. Flence, lhr-'tru,.u-rlof t'xctttPlarv rl.rnragr:s in lhc ar)r()unl oi anroLrlrl oI no lcss than Thrct,Hunrlrctl ll-rorrs,ind I'csos (l'300,000.00) for. r..rt:h .()nrpl.rin.rrt is

Pro Pcr.

Clonr pla ilr,in ls irrc lil(c\\ ist, cnliLlc,d to .riLoln(,\'s ir,,-,s ,rni1 tlrt,(:o5ts ol- sLlil prrrsLrant kr..\rliL-lt. l20t ol llrL'(liril (-oLit,. Il is \\'r,llscltlc(1 ih.rt (Ir .,rIti()n institLrt('(] l()r' tltI r(,ao\ |,r\ (rl \\'.tgcs, rrr r,, hr,rr dri(rrnplo\ LiLi is lorcerl h) litignt(, .Irrl cotrsorlur-'r-rtlr', ir-tcLll litigatione\l)enscs to fr()tcct lhtir rights arcl intcrcsls, thc gr.]]rt of .,itlolnc\"sices is Icllir lly jr:stifialrlo.

IIl. Ir.rclividual respondents Messrs.Uriarte and Sante should be hcld

i:'Spartan Sc.urilv & Detective Al,en.y, If.. v NLIIC,2lISCRA 528(lrl92).

solidarily liablecompany for all of

rvith the respondentcomplainants' claims

Firrallr,, it is respreclfullY sLrbrriltcrl th,rt in,.li!i(1Lr.rl re5pon(lcntsNIL'ssrs. Lriarte ancl Santc shoLrl.l L.r, Irelrl solirlarilv liaLrlr, uith lhcrcsPonrlt'nI a()1]1palr\r for all o1 compl.linants' elaims. \\'hile it is

.r!ll]lilie(l tirat thc Companr. anrl Nlcssrs. Uri.,rrlc alrLl S.rlltc h.rYcscf.lr.rtc anr-l ,:listini:t pcrson.r Iitit:s, thcir s('pirrirt(, 1)(,r'sonalilir.s nrLrsl

l.',r. l,ic,rccrl in vicu'of thc attcnLlant b.rd faith surrountlinl,, llrr,P11.5i.11i

casc. As crplaincd it'r r\ttrort llutl Projtct (lorltc,rttiotr r,. N/ 1l( : '

"A colpol-ale otficer is not pelsonally liable for ihe morleyclaims of lhe clischargeLl corPorilte employees ur-rless hc actc.l !\,illlcviLlent malice and bacl faith in telrrinating tirL.iI emploYrrcDt."

.\s rliscussr-'tl .rbor e, tlrc indir itlual rt,sPorrlcnts \1r'ssrs. L liarttanrl S.rnl(' ilele llre mlniprrl,rlire horrrl: lh,rt tilectirclr' [],r\e(l tlrt,\val lor eorrrprlainant's illt.rlal tlisnissal. Tht.ir nr,rnipul.rtion olaorrlrlainants'constitution.rl and st.rtutor\,rillhts to s(].Lrrit\'ol tenLrrr,

is Lrttcrir'. tlctcstabli:. Sr-rclr lrich-lrancieal i,ralions shoultl not bcignorcr-I. l'hr:r.shoulcl not bt allorvtrl k) cs..rp(' Iiabilitv Irv hidinllru nde,r LIrc cloak oI cor poratt' fiction.

PRAYER

I{HEREFORE, it is rcspeL liLrlh plalt,il Llrat ,rlt('r rlu(' noti.('anil lrcaring, jtl(lgment l.e ft,rtlcreti in iar r.rI ol !onrl)l(lin(rlrts .r'rLl

.rg.r irsl rt'slrorttlerits as lol]ows:

l. Dcr-lalin1l that thr: r:olnplainanls u,crc consirLrclivcllcl isr.r.r isst,cl l'roln cllplo\.nrurti

2. Orclcrinll ri.spontlrnts to rcinstatc compl.rinants 1o lheir'folnlcr posili(ms r'r,ithoul loss of scnioritv ri;Shts.rntl othe rpriviltgc,s, ol if llrclc i: strainr:tl r'clationship, to parst,paration [).rY irr the.]Dr()unl ()l ()n('(l) nronlh': Pa\ torc!t,rt t t,;rI oi scrvice;

L! C It. No. I 11733,l.1n 2, 1997.

3. Ordcring resporrrlt'r'tts to ]oinll\' .ir-rLl st'i crallr' l-,arcottt;.lninants' Iul l L-,rckn.i1s:, itrt lttsivr-' ol' alloilatrtt's,otht.r L,cnciils ar.rd,/or llrcir nronel.lry ctluivalr.:ni;

:1. Orrlc:ring rcspontlenls lo iointll autl sevelnllt' paiconrPlainants thc dmoLIrL of Ihrt't' HLrtttlrt'il I'lr0rts.rtltlI']t sos (1']3t)0,00t).t)0) cach bi u,av of nroral clart.ia,u,r's arrrl

Three IlLrnclrecl lhousanrl Pt,:r,s (l)100,000.00) cach Lrl

rlat oI crt'rrrl-,lalt. tlanr.r11cs; lrntl

-. Orileriri,, responrlcnls lo jointlv anrl st'r r't allt patcompl,r ir-rirrls tlr(' .rroLrrl t'11 rt ir,.t lr.'n L lo I ()",, oi t]tr' lolalDr()lr(,i.I \' a\rnrLl I)\' rr at ol- aitolnet 's [,r's.

Othr-:r' rclicls, jrrst arttl ccluit.rblt:, arc likcl ise pra\ ('rl lor'.

City of Nlanila for (]ur:zori Cit\', l+ FcbrLrar\' 2011.

ATTY. BIENVENIDO A. C[RI]O, IIt.Crrrrrrsr'1 li,r' lltL' l o)t!l)ltlirnfil5

57'F Iniramu ros ( lrrpor;r tt' IJl.tzit

Il(r(olIt()s Stre (. t, Intr.rnruxrs, \ l.r n illr

PTli No. 07219+7 /2.11.2011/Tacrrrong C itvIBP No. E17{701 I.1)1.20I31SLrltan Kuilar-aI

Roll No. 3-1758

-\'lCLE Compliance No. I\' (l(ll955E

Issucc{ April 1 1, 20I3

Copl Iitrrnislrt'r1:

BITMICITO N ETWOITI(SINTERNATIONAL, INC., [T ,,1L.

lo. 1,,.,. \,.1 .1,..r, ltrri.lirrl3,d \r'cn uc aorrr(,r 2(9t,Slr(.clBonif.rcio Clobal Citr', Taguig Citr

si n, l,ft,,n. 1)n{irr l2)

REPUBLIC OF THE PHILIPPINESDEPARTMENT OF LABOR AND EMPLOYMENTNATIONAL LABOR RELATIONS COMMISSION

NATIONAL CAPITAL REGIONQUEZON CITY

ERICK S. SARTE, ET AL.,Complainants,

BITMICRO NETWORKSINTERNATIONAL, INC., ETAL.,

Respondents.- - -- - - - - - - - - - - - - - - - - -x

-versus-NLRC NCR Case No. 12-15596-13

(Hon. Labor Arbiter Jaime M. Reyno)

x----

POSITION PAPER

COMPLAINANTS, throtrglt Llrc utrtlcrsigtrctl,-oLtrr:cl,r-csl,cttlLrlly subr-nit tlrcir Position I).rPcr lor tltc cottsitler.rti()r'r oi lllisHonor.rblr-, ()il'ici., .rrrl in \Llpfr()rt ilr(,r('()1, sL.rt(':

NATURE OF THE CASE

l'his is a Conrpl.rint [oI constlLrctivc tlistttissal fi]cd bt' thr:

conrplairrirrris .rp,.rir'rst thr' tt:sponr-1cnls. C.ttrttyrlaitrarrts Pr.rl lor, .lrlLl,

as rlill [,c sliorvn ]rcrcunrl,.'r, trrc rlrtlt crtlitlt'tl to tht'it clairtts torprivnlL.nI o1 backu,.tgt's, r'c ilrst.i tc ]lelrl aLr,.1,rot 1,.rt rttcttt Lrf st'paralitltlpii\, Pa\'1lenl oi o[her errrPlovnrcrrt bctrelils, ttrotal art,-1 cre tlpl,lrrrlanragcs, .ur(l .rltoln('\'s iu's ior conrp,-'llin,q tlllnt to litirlati' ,rrrLi

Pr(Jicci lhei r ilrll,rcsls.