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case, he did not see them due to his poor eyesight.[8] After HSTC found Cordero's
explanation insufficient, he was dismissed from employment through a Notice of
Termination dated March 8, 2016.[9] This prompted Cordero to file a complaint[10] for
illegal dismissal and payment of 13th month pay, separation pay, damages, and
attorney's fees against HSTC and Esguerra, as its Chief Executive Officer, [11] before
the NLRC.
For their part, HSTC and Esguerra contended that the significant losses in the oil and
petroleum products were confirmed after using a Four Point Analysis, an accepted
formula adopted in the oil shipping industry to determine oil/petroleum loss during a
sea voyage. Moreover, a suspicious event was captured and recorded by M/Tkr Angat' s
CCTV camera, showing an unknown boat navigating its way at the side of the vessel,
crew members coming out of their quarters, examining/investigating, and waving off
the boat, and the blocking/covering of the CCTV camera for three (3) hours between
December 26 and 27, 2015.[12] They maintained that Cordero, as M/Tkr Angat's
Helmsman/Watchman, was undoubtedly aware of the oil pilferage; having had a
vantage point from the bridge of the vessel, he would not have missed any boat or
vessel that will approach M/Tkr Angat from the side. Likewise, Cordero would have
seen who removed the cover of the CCTV camera that was blocked. However, despite
the incident, Cordero did not report any irregularity to HSTC.[13]
The Labor Arbiter Ruling
In a Decision[14] dated November 21, 2016, the Labor Arbiter (LA) found Cordero's
employment to have been validly terminated and thus, dismissed the complaint for lack
of merit.[15] The LA ruled that there was substantial evidence to show that Cordero
participated in the oil pilferage while navigating at sea. Hence, he committed Serious
Misconduct and Willful Breach of Trust and Confidence when he perpetrated a serious
infraction amounting to theft of property entrusted to him.[16]
Aggrieved, Cordero appealed[17] to the NLRC.
The NLRC Ruling
In a Decision[18] dated February 28, 2017, the NLRC affirmed the LA's dismissal of the
complaint[19] upon a finding that Cordero was validly dismissed for a just cause. It
explained that for failure to call out the irregularity during his duty and report the same
to HSTC, Cordero committed a dereliction of duty that amounted to Serious Misconduct.
[20] Moreover, Cordero also committed Willful Breach of Trust and Confidence, since he
was considered as a fiduciary rank-and-file employee who was entrusted with the care
and custody of HSTC's vessel and the oil it transported.[21] Finally, the NLRC found that
HSTC and Esguerra complied with the procedural due process rule in terminating
Cordero's employment, having been apprised of the charges against him and given the
opportunity to be heard.[22]
Dissatisfied,
Cordero
moved
for
reconsideration,[23]
which
was
denied
in
a
Resolution[24] dated April 27, 2017. Hence, the matter was elevated to the CA via a
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