Bargaining in bad faith

1st DIVISION G.R. No. L-32387 August 19, 1975 NATIONAL DEVELOPMENT COMPANY, vs NDC EMPLOYEES AND WORKERS' UNION and COURT OF INDUSTRIAL RELATIONS, MAKASIAR, J.: petition for certiorari

1. Where the state or a government entity descends to the level of a private enterprise by entering into contracts with private individuals or firms, it divests itself of its sovereign character and its immunity from suits.
2. The complaint primarily charges the petitioner NDC with unfair labor practice—bargaining in bad faith. It is the allegation of the complaint which determines the jurisdiction of the court.
3. A refusal to comply with the terms of a collective bargaining agreement constitutes bargaining in bad faith and an unfair labor practice (Majestic & Republic Theaters Employees Association [PAFLU] vs. CIR, et. al., L-1260, Feb. 28, 1962, 4 SCRA 457, 462).
4. The rule regarding exhaustion of administrative remedies is not absolute (Dauan vs. Secretary of Agriculture and Natural Resources, L-19547, Jan. 31, 1967, 19 SCRA 223; Gravador vs. Mamigo, L-24989, July 21, 1967, 20 SCRA 742; Milleres vs. Subido, L-23281, Aug. 10, 1967, 20 SCRA 954). The rule may be relaxed where the protestant has no other recourse (Sta. Maria vs. Lopez, L-30773, Feb. 18, 1970, 31 SCRA 637), or where there are circumstances indicating the urgency of judicial intervention (Gonzales vs. Hechanova, L-21897, Oct. 22, 1963, 9 SCRA 230; Abaya vs. Villegas, L-25641, Dec. 17, 1966, 18 SCRA 1034; Mitra vs. Subido, L-21691, Sept. 15, 1967, 21 SCRA 127).

In the present case, considering that the company had closed all avenues for the union to secure favorable action on its demand, ... primary resort to grievance procedures is not logical and proper.