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  • 15 Bankard Inc v. NLRC

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    Bhianca Ruth Mauricio
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    Bankard Inc. implemented a voluntary resignation program with separation pay for employees and contracted an outside agency to handle its needs after many employees resigned. The Supreme Court ruled that outsourcing is not an unfair labor practice unless it is proven that the employer intended to reduce union membership or interfere with employees' right to organize. Since Bankard's program was a valid exercise of business judgment and there was no evidence of ill intent to weaken the union, outsourcing the work of resigned employees was allowed.

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    Bankard Inc. implemented a voluntary resignation program with separation pay for employees and contracted an outside agency to handle its needs after many employees resigned. The Supreme Court ruled that outsourcing is not an unfair labor practice unless it is proven that the employer intended to reduce union membership or interfere with employees' right to organize. Since Bankard's program was a valid exercise of business judgment and there was no evidence of ill intent to weaken the union, outsourcing the work of resigned employees was allowed.

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    © All Rights Reserved
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    12 views1 page

    15 Bankard Inc v. NLRC

    Uploaded by

    Bhianca Ruth Mauricio
    Bankard Inc. implemented a voluntary resignation program with separation pay for employees and contracted an outside agency to handle its needs after many employees resigned. The Supreme Court ruled that outsourcing is not an unfair labor practice unless it is proven that the employer intended to reduce union membership or interfere with employees' right to organize. Since Bankard's program was a valid exercise of business judgment and there was no evidence of ill intent to weaken the union, outsourcing the work of resigned employees was allowed.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
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    Bankard Inc. v.

    NLRC
    G.R. No. 171664
    March 6, 2013

    FACTS:
    Petitioner implemented a program to enhance its efficiency, inviting the employees to resign
    with separation pay. When majority availed the program, the petitioner contracted an agency
    to handle its needs.

    ISSUE:
    Whether or not outsourcing is an unfair labor practice

    RULING:
    No. Nothing proves that the program was intended to reduce union membership or encourage
    the employees to disassociate themselves from the Union. In the absence of any showing that
    Bankard was motivated by ill will, bad faith or malice, or that it was aimed at interfering with its
    employees’ right to self-organize, it cannot be said to have committed an act of unfair labor
    practice. Contracting out of services is an exercise of business judgment or management
    prerogative.

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