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Somerville Stainless Steel Corp. vs. NLRC, et al.

SOMERVILLE STAINLESS STEEL CORPORATION, petitioner, vs. NATIONAL LABOR RELATIONS COMMISSION AND JERRY MACANDOG, REYNALDO MIRANDA, ROBERTO TAGALA, ET AL., respondents.

G.R. No. 125887 | 1998-03-11

D E C I S I O N

PANGANIBAN, J:

Not every loss incurred or expected to be incurred by an employer can justify retrenchment. The employer must prove, among others, that the losses are substantial and that the retrenchment is reasonably necessary to avert such losses.

Statement of the Case

This principle is applied by this Court in resolving this petition for certiorari under Rule 65 of the Rules of Court assailing the Resolutions of the National Labor Relations Commission 1 (NLRC) promulgated on May 9, 1996 2 and on July 18, 1996 3 in NLRC NCR CA No. 008064-94. 4 Public respondent's assailed Decision affirmed Labor Arbiter Cornelio L....