THE COURT of Appeals (CA) has upheld a ruling in favor of GMA Network, Inc. and Scenarios, Inc. issued by the the National Labor Relations Commission-Sixth Division (NLRC).

The case was originally filed by members of the Scenarios, Inc. Employees Union (SIEU).

In a decision dated July 31, 2017, the Fifth Division of the appellate court rejected the Petition for Certiorari filed by Ruben Dela Cruz Fausto, Marvin Condino, Rodrigo P. Mangalindan, Restituto R. Lopez, Hernando R. Santos seeking the reversal of the NLRC ruling that rejected their illegal dismissal complaint.

The petitioners are former employees of Scenarios, Inc., a production, promotions, advertising and management firm for radio and television programs, stage plays, concerts, and entertainment.

The former employees claimed that the NLRC committed “grave abuse of discretion amounting to lack or excess of jurisdiction in finding that the closure of the [Scenarios, Inc.] is legal, hence, the dismissal of complaint for illegal dismissal.”

The petitioners first sought relief from the NLRC alleging unfair labor practices on the part of GMA and Scenarios.

The Court, however, ruled that the petition “has no merit.”

“As a management prerogative, the closure of an establishment is ordinarily not interfered with by the State, on the ground that no business undertaking must be required to continue operating simply because it has to maintain its workers in employment,” the CA said.

The appellate court also said that the NLRC did not commit grave abuse in rejecting the petitioners’ appeal. “By grave abuse of discretion is meant capricious and whimsical exercise of judgment as is equivalent to lack of jurisdiction. Mere abuse of discretion is not enough,” the CA added.

Associate Justice Magdangal M. de Leon was the author of the 14-page decision. Concurring were Associate Justices Franchito N. Diamante and Zenaida T. Galapate-Laguilees. — Kristine Joy V. Patag