GALAXIE STEEL WORKERS UNION (GSWU-NAFLU-KMU) VS NATIONAL LABOR RELATIONS COMMISSION, GALAXIE STEEL CORPORATION and RICARDO CHENG 504 SCRA 692 (2006)

GALAXIE STEEL WORKERS UNION (GSWU-NAFLU-KMU)

VS

NATIONAL LABOR RELATIONS COMMISSION, GALAXIE STEEL CORPORATION and RICARDO CHENG 504 SCRA 692 (2006)

The requirement of the Labor Code that notice shall be served on the workers is not complied with by the mere posting of the notice on the bulletin board.

On account of serious business losses which occurred in 1997 up to mid-1999 totaling around P127,000,000.00, Galaxie Steel Workers Union decided to close down its business operations. It thereafter filed a written notice with the Department of Labor and Employment (DOLE) informing the latter of its intended closure and the consequent termination of its employees effective August 31, 1999. It posted the notice of closure on the corporate bulletin board.

On September 8, 1999, Galaxie Steel Workers Union and Galaxie employees filed a complaint for illegal dismissal, unfair labor practice, and money claims against Galaxie. The Labor Arbiter, NLRC and the Court of Appeals were unanimous in ruling that Galaxie’s closure or cessation of business operations was due to serious business losses or financial reverses, and not because of any alleged anti-union position.

The workers’ union and employees contend that Galaxie did not serve written notices of the closure of business operations upon them, it having merely posted a notice on the company bulletin board.

ISSUE:
Whether or not the written notice posted by [Galaxie] on the company bulletin board sufficiently complies with the notice requirement under Article 283 of the Labor Code.

HELD:
The mere posting on the company bulletin board does not meet the requirement under Article 283 of ―serving a written notice on the workers.‖ The purpose of the written notice is to inform the employees of the specific date of termination or closure of business operations, and must be served upon them at least one month before the date of effectivity to give them sufficient time to make the necessary arrangements. In order to meet the foregoing purpose, service of the written notice must be made individually upon each and every employee of the company.