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FERNANDO, J.:
The failure of respondent Court of Industrial Relations to order the reinstatement of petitioners to
their employment gave rise to this appeal by way of certiorari. The need for resort to this Court could
have been obviated had there been no such marked inattention to the authoritative principle that a
closed-shop provision of a collective bargaining contract is not to be applied retroactively for, at the
time the decision was rendered on November 2, 1967 and its affirmance by a resolution of
respondent Court en banc on January 22, 1968, such a doctrine was controlling and did call for
application. So it was indicated in the leading case of Confederated Sons of Labor v. Anakan
Lumber and Co.,1 a 1960 decision. As a matter of law then, the stand of petitioners is well-nigh
impregnable. It would follow that their appeal must be sustained and respondent Court must be
reversed.
Three unfair labor practice cases for unlawful dismissal allegedly based on legitimate union activity
were filed against respondent Central Santos Lopez Co., Inc. and respondent United Sugar Workers
Union-ILO, with eight of the present petitioners as complainants in the first,2 six of them in the
second,3 and five, in the third.4 There was a consolidated hearing and a consolidated decision not
only for convenience, but also due to there being hardly any difference as to the nature of the
alleged grievance and the defense of management. There was no question about the expulsion from
respondent labor union of the former. In view of a closed-shop provision in the then existing
collective bargaining contract, respondent Central Santos Lopez Co., Inc. assumed it had to dismiss
them. So it was noted in the decision of the then associate Judge Joaquin M. Salvador of
respondent Court. Thus: "The respondent company, in its answer, alleged that the only reason for
the dismissal of the complainants herein is because their said dismissal was asked by the USWU-
ILO of which union respondent company has a valid and existing collective bargaining contract with
a closed-shop provision to the effect that those laborers who are no longer members of good
standing in the union may be dismissed by the respondent company if their dismissal is sought by
the union; that respondent company has never committed acts of unfair labor practice against its
employees or workers much less against the complainants herein but that it has a solemn obligation
to comply with the terms and conditions of the contract; and that a closed-shop agreement is
sanctioned under this jurisdiction for such kind of agreement is expressly allowed under the
provisions of Republic Act 875 known as the Industrial Peace Act and the dismissal of complainants
is merely an exercise of a right allowed by said law."5 There was no question, however, as to
petitioners having been employed by such respondent Company long before the collective
bargaining contract, the first instance noted being that of Resurrecion Diaz, who was in the service
as far back as 1928;6 Santiago Bañez, as far back as 1929;7 Dimas Bocbocila, as far back as
1933;8 Simeon Bernil, as far back as 1935;9 Aurelio Alamon, as far back as 1936; 10 Valentin
Guijarno, as far back as 1937; 11 Benito Guavez, as far back as 1938; 12 Raymundo Alamon, as far
back as 1939; 13 Eleuterio Boblo, Nicolas Alamon, Sofronio Conclara, Adriano Biñas and Federico
Bosque, as far back as 1947; 14 Herminigildo de Juan and Nicolas Casumpang, as far back as
1948; 15 Agosto Pulmones, as far back as 1949; 16 and Feliciano Belgira, as far back as 1954. 17
In the decision of respondent Court, there was an acknowledgment of the prior existence of such
employment relationship. Nonetheless, the conclusion reached, both by the trial judge and then by
respondent Court en bancwas that the dismissal was justifiable under the closed-shop provision of
the collective bargaining agreement. Hence, this petition for review, which, as noted at the outset, is
impressed with merit.
1. The authoritative doctrine that a closed-shop provision in a collective bargaining agreement is not
to be given a retroactive effect so as to preclude its being applied to employees already in the
service, is traceable, as set forth in the opening paragraph of this opinion, to the leading case
of Confederated Sons of Labor v. Anakan Lumber Co. 18decided in April of 1960. In discussing the
particular stipulation in the contract, it was made clear in the opinion of the then Justice, later Chief
Justice, Concepcion: "In order that an employer may be deemed bound, under a collective
bargaining agreement, to dismiss employees for non-union membership, the stipulation to this effect
must be so clear and unequivocal as to leave no room for doubt thereon. An undertaking of this
nature is so harsh that it must be strictly construed, and doubts must be resolved against the
existence of "closed shop"." 19 Less than a year later, to be more precise, on January 28, 1961,
in Freeman Shirt Manufacturing Co., Inc. v. Court of Industrial Relations, 20 this Court, speaking
through Justice Gutierrez David, went further. Thus: "The closed-shop agreement authorized under
sec. 4, subsec. a(4) of the Industrial Peace Act above quoted should however, apply to persons to
be hired or to employees who are not yet members of any labor organization. It is inapplicable to
those already in the service who are members of another union. To hold otherwise, i. e., that the
employees in a company who are members of a minority union may be compelled to disaffiliate from
their union and join the majority or contracting union, would render nugatory the right of all
employees to self-organization and to form, join or assist labor organizations of their own choosing, a
right guaranteed by the Industrial Peace Act (sec. 3, Rep. Act No. 875) as well as by the Constitution
(Art. III, sec. 1[6])." 21 Thereafter, in Kapisanan Ng Mga Mangagagawa Ng Alak v. Hamilton Distillery
Company, 22 this Court, again speaking through the former, minced no words in characterizing a
stipulation that would allow a dismissal of those already employed as "null and void." 23 In 1967, this
time already elevated to his position as head of the Court, Chief Justice Concepcion in Salunga v.
Court of Industrial Relations 24did stress that while "generally, a state may not compel ordinary
voluntary associations to admit thereto any given individual, because membership therein may be
accorded or withheld as a matter of privilege, the rule is qualified in respect of labor unions holding a
monopoly in the supply of labor, either in a given locality, or as regards a particular employer with
which it has a closed-shop agreement. ... ." 25 He continued: "Consequently, it is well settled that
such unions are not entitled to arbitrarily exclude qualified applicants for membership, and a closed-
shop provision would not justify the employer in discharging, or a union in insisting upon the
discharge of, an employee whom the union thus refuses to admit to membership, without any
reasonable ground therefor. Needless to say, if said unions may be compelled to
admit new members, who have the requisite qualifications, with more reason may the law and the
courts exercise the coercive power when the employee involved is a long standing union member,
who, owing to provocations of union officers, was impelled to tender his resignation, which he
forthwith withdrew or revoked. Surely, he may, at least, invoke the rights of those who seek
admission for the first time, and can not arbitrarily be denied re-admission." 26
Nothing can be clearer therefore than that this Court looks with disfavor on a provision of this
character being utilized as an excuse for the termination of employment. To complete the picture,
mention should be made of Elegance, Inc. v. Court of Industrial Relations, 27 where this Court,
through the present Acting Chief Justice Makalintal, harked back to Freeman Shirt Manufacturing
Co., Inc. v. Court of Industrial Relations 28 to stress the point of non-retroactivity. What should be
immediately apparent, but unfortunately respondent Court seemed to have closed its eyes to it, is
that when the decision was rendered by the trial judge on November 2, 1967 and affirmed with the
Court sitting en banc on January 22, 1968, the controlling doctrine to which deference ought to have
been paid was that petitioners should not have been dismissed.
2. Nor is there anything unusual in this Court's adherence with remarkable consistency to such a
basic doctrine. The obligation was categorically imposed on the State, under the 1935 Constitution,
to "afford protection to labor, especially to working women and minors ... ." 29 That is to carry out the
purpose implicit in one of the five declared principles, namely, the promotion of social justice "to
insure the well-being and economic security of all the people ... ." 30 It is then the individual
employee, as a separate, finite human being, with his problems and his needs, who must be
attended to. He is the beneficiary of the concern thus made manifest by the fundamental law. The
present Constitution is even more explicit on the matter. The principle that the State shall promote
social justice is categorically based on the concept of insuring "the dignity, welfare, and security of all
the people." 31 Insofar as the provision on the State affording protection to labor is concerned, it is
further required to "promote full employment and equality in employment, ensure equal work
opportunities regardless of sex, race, or creed, and regulate the relations between workers and
employers. The State shall assure the rights of workers to self-organization, collective bargaining,
security of tenure, and just and humane conditions of work." 32 Where does that leave a labor union,
it may be asked. Correctly understood, it is nothing but the means of assuring that such fundamental
objectives would be achieved. It is the instrumentality through which an individual laborer who is
helpless as against a powerful employer may, through concerted effort and activity, achieve the goal
of economic well-being. That is the philosophy underlying the Industrial Peace Act. 33 For, rightly
has it been said that workers unorganized are weak; workers organized are strong. Necessarily then,
they join labor unions. To further increase the effectiveness of such organizations, a closed-shop
has been allowed. 34 It could happen, though, that such a stipulation which assures further weight to
a labor union at the bargaining table could be utilized against minority groups or individual members
thereof. There are indications that such a deplorable situation did so manifest itself here.
Respondent Court, it would appear, was not sufficiently alert to such a danger. What is worse, it paid
no heed to the controlling doctrine which is merely a recognition of a basic fact in life, namely, that
power in a collectivity could be the means of crushing opposition and stifling the voices of those who
are in dissent. The right to join others of like persuasion is indeed valuable. An individual by himself
may feel inadequate to meet the exigencies of life or even to express his personality without the right
to association being vitalized. It could happen though that whatever group may be in control of the
organization may simply ignore his most-cherished desires and treat him as if he counts for naught.
The antagonism between him and the group becomes marked. Dissatisfaction if given expression
may be labeled disloyalty. In the labor field, the union under such circumstances may no longer be a
haven of refuge, but indeed as much of a potential foe as management itself. Precisely with the
Anakan doctrine, such an undesirable eventuality has been sought to be minimized, if not entirely
avoided. There is no justification then, both as a matter of precedent and as a matter of principle, for
the decision reached by respondent Court.
3. Now as to the remedy to which petitioners are entitled. Clearly, they should be reinstated with
back pay. In Salunga v. Court of Industrial Relations, 35 reinstatement was ordered but it was the
labor union that was held liable for the back wages. That is a rule dictated by fairness because
management, in this case respondent Central Santos Lopez Company, Inc., would not have taken
the action it did had it not been for the insistence of the labor union seeking to give effect to its
interpretation of a closed-shop provision. As we decided then, so do we now. These words of the
Chief Justice in Salunga carry persuasion: "Just the same, having been denied re-admission into the
Union and having been dismissed from the service owing to an unfair labor practice on the part of
the Union, petitioner is entitled to reinstatement as member of the Union and to his former or
substantially equivalent position in the Company, without prejudice to his seniority and/or rights and
privileges, and with back pay, which back pay shall be borne exclusively by the Union. In the
exercise of its sound judgment and discretion, the lower court may, however, take such measures as
it may deem best, including the power to authorize the Company to make deductions, for petitioner's
benefit, from the sums due to the Union, by way of check off or otherwise, with a view to executing
this decision, and, at the same time effectuating the purposes of the Industrial Peace Act." 36
WHEREFORE, the decision of respondent Court of November 2, 1967 and the resolution of
respondent Court en banc sustaining the same of January 2, 1968 are hereby reversed. Respondent
Central Lopez Co., Inc. is hereby ordered to reinstate petitioners to the positions they occupied prior
to their illegal dismissal, with back wages to be paid by respondent United Sugar Workers Union-
ILO, deducting therefrom whatever wages they may have earned in the meanwhile. With costs
against private respondents.
Makalintal, Actg. C.J., Castro, Teehankee, Makasiar, Antonio and Esguerra, JJ., concur.
Barredo, J., took no part.
Zaldivar, J., is on leave.
Footnotes
1 107 Phil. 915.
2 The eight complainants in Case No. 81-ULP-Iloilo now L-28791, are the following:
Valentin Guijarno, Herminigildo de Juan, Nicolas Casumpang, Eleuterio Boblo,
Benito Guavez, Arsenio Jemena, Dimas Bocbocila and Nicolas Alamon.
3 The six complainants in Case No. 88-ULP-Iloilo, now L-28792, are the following:
Ismael Billones, Raymundo Alamon, Santiago Bañes, Sofronio Conclara, Adriano
Biñas and Aurelio Alamon.
4 The five complainants in Case No. 89-ULP-Iloilo, now L-28793, are the following:
Simeon Bernil, Resurrecion Diaz, Feliciano Belgira, Federico Bosque and Agosto
Pulmones.
5 Decision, Annex A of Petition, 34.
6 Ibid, 27.
7 Ibid, 19.
8 Ibid, 11.
9 Ibid, 20.
10 Ibid, 18.
11 Ibid, 5.
12 Ibid, 6.
13 Ibid, 15.
14 Ibid, 8, 12, 13, 17 and 24.
15 Ibid, 4 and 12.
16 Ibid, 25.
17 Ibid, 23. Petitioner Arsenio Jemena did not specify his date of employment, and
petitioner Ismael Billones was not presented as a witness, but it would appear that no
question as to their having been in the employment at the time of the collective
bargaining contract could seriously be raised.
18 107 Phil. 915.
19 Ibid, 919.
20 L-16561, January 28, 1961, 1 SCRA 353.
21 Ibid, 356.
22 L-18112, October 30, 1962, 6 SCRA 367.
23 Ibid, 372. Cf. Findlay Millar Timber Co. v. Phil. Land-Air-Sea Labor Union, L-
18217 and L-18222, September 29, 1962, 6 SCRA 227; United States Lines Co. v.
Associated Watchmen & Security Union, L-15508, June 29, 1963, 8 SCRA 326;
National Brewery & Allied Industries Labor Union of the Phil. v. San Miguel Brewery,
Inc., L-18170, August 31, 1963, 8 SCRA 805; Phil. Steam Navigation Co. v. Phil.
Marine Officers Guild, L-20667 and L-20669, October 29, 1965, 15 SCRA 174; Rizal
Labor Union v. Rizal Cement Co., Inc., L-19779, July 30, 1966, 17 SCRA 858.
24 L-22456, September 27, 1967, 21 SCRA 216.
25 Ibid, 222-223.
26 Ibid, 223. Cf. Seno v. Mendoza, L-20565, November 29, 1967, 21 SCRA 1124.
27 L-24096, April 20, 1971, 38 SCRA 382.
28 L-16561, January 28, 1961, 1 SCRA 353.
29 Art. XIV, Sec. 6.
30 Art. II, Sec. 5 of the 1935 Constitution.
31 Art. II, Sec. 6 of the revised Charter reads in full: "The State shall promote social
justice to ensure the dignity, welfare, and security of all the people. Towards this end,
the State shall regulate the acquisition, ownership, use, enjoyment, and disposition of
private property, and equitably diffuse property ownership and profits."
32 Art. II, Sec. 9 of the revised Constitution.
33 Republic Act No. 875 (1953).
34 A proviso in Sec. 4, par. (a)(4) reads as follows: "That nothing in this Act or in any
other Act or statute of the Republic of the Philippines shall preclude an employer
from making an agreement with a labor organization to require as a condition of
employment membership therein, if such labor organization is the representative of
the employees as provided in Section twelve, but such agreement shall not cover
members of any religious sects which prohibit affiliation of their members in any such
labor organization." As amended by Republic Act No. 3350 (1961).
35 L-22456, September 27, 1967, 21 SCRA 216.
36 Ibid, 225..
________________________________________________________________________________
2. ELECTROMAT MANUFACTURING and G. R. No. 172699
RECORDING CORPORATION,
Petitioner,
- versus -
Present:
CARPIO, J.,
HON. CIRIACO LAGUNZAD, in his capacity as Chairperson,
Regional Director, National Capital Region,
Department of Labor and Employment; LEONARDO-DE CASTRO,*
and HON. HANS LEO J. CACDAC, in his BRION,
capacity as Director of Bureau of Labor
Relations, Department of Labor and PERALTA,** and
Employment, PEREZ, JJ.
Public Respondents.
Promulgated:
NAGKAKAISANG SAMAHAN NG
MANGGAGAWA NG ELECTROMAT-WASTO, July 27, 2011
Private Respondent.
x----------------------------------------------------------------------------------------x
DECISION
BRION, J.:
We resolve the present petition for review on certiorari[1] assailing the decision[2] and the
resolution[3] of the Court of Appeals (CA) dated February 3, 2006 and May 11, 2006, respectively,
rendered in CA G.R. SP No. 83847.
The Antecedents
The BLR thereafter issued the union a Certification of Creation of Local Chapter (equivalent to the
certificate of registration of an independent union), pursuant to Department Order No. (D.O.) 40-03.[4]
On October 1, 2003, the petitioner Electromat Manufacturing and Recording Corporation (company)
filed a petition for cancellation of the unions registration certificate, for the unions failure to comply
with Article 234 of the Labor Code. It argued that D.O. 40-03 is an unconstitutional diminution of the
Labor Codes union registration requirements under Article 234.
On November 27, 2003, Acting Director Ciriaco A. Lagunzad of the Department of Labor and
Employment (DOLE)-National Capital Region dismissed the petition.[5]
In the appeal by the company, BLR Director Hans Leo J. Cacdac affirmed the dismissal.[6] The
company thereafter sought relief from the CA through a petition for certiorari, contending that the
BLR committed grave abuse of discretion in affirming the unions registration despite its non-
compliance with the requirements for registration under Article 234 of the Labor Code. It assailed the
validity of D.O. 40-03 which amended the rules of Book V (Labor Relations) of the Labor Code. It
posited that the BLR should have strictly adhered to the union registration requirements under the
Labor Code, instead of relying on D.O. 40-03 which it considered as an invalid amendment of the
law since it reduced the requirements under Article 234 of the Labor Code. It maintained that the
BLR should not have granted the unions registration through the issuance of a Certification of
Creation of Local Chapter since the union submitted only the Charter Certificate issued to it by
WASTO.
The CA Decision
In its decision rendered on February 3, 2006,[7] the CA Tenth Division dismissed the petition and
affirmed the assailed BLR ruling. It brushed aside the companys objection to D.O. 40-03, and its
submission that D.O. 40-03 removed the safety measures against the commission of fraud in the
registration of unions. It noted that there are sufficient safeguards found in other provisions of the
Labor Code to prevent the same.[8] In any event, it pointed out that D.O. 40-03 was issued by the
DOLE pursuant to its rule-making power under the law.[9]
The company moved for reconsideration, arguing that the unions registration certificate was invalid
as there was no showing that WASTO, the labor federation to which the union is affiliated, had at
least ten (10) locals or chapters as required by D.O. 40-03. The CA denied the motion,[10] holding
that no such requirement is found under the rules. Hence, the present petition.
The Case for the Petitioner
The company seeks a reversal of the CA rulings, through its submissions (the petition [11] and the
memorandum[12]), on the ground that the CA seriously erred and gravely abused its discretion in
affirming the registration of the union in accordance with D.O. 40-03. Specifically, it assails as
unconstitutional Section 2(E), Rule III of D.O. 40-03 which provides:
The report of creation of a chartered local shall be accompanied by a charter
certificate issued by the federation or national union indicating the creation or
establishment of the chartered local.
The company points out that D.O. 40-03 delisted some of the requirements under Article 234 of the
Labor Code for the registration of a local chapter. Article 234 states:
ART. 234. Requirements of Registration.[13] Any applicant labor organization,
association or group of unions or workers shall acquire legal personality and shall be
entitled to the rights and privileges granted by law to legitimate labor organizations
upon issuance of the certificate of registration based on the following requirements:
(a) Fifty pesos (P50.00) registration fee;
(b) The names of its officers, their addresses, the principal address
of the labor organization, the minutes of the organizational
meetings and the list of the workers who participated in such
meetings;
(c) The names of all its members comprising at least twenty percent
(20%) of all the employees in the bargaining unit where it seeks
to operate;
(d) If the applicant union has been in existence for one or more
years, copies of its annual financial reports; and
(e) Four (4) copies of the constitution and by-laws of the applicant
union, minutes of its adoption or ratification, and the list of the
members who participated in it.
The company contends that the enumeration of the requirements for union registration under the law
is exclusive and should not be diminished, and that the same requirements should apply to all labor
unions whether they be independent labor organizations, federations or local chapters. It adds that in
making a different rule for local chapters, D.O. 40-03 expanded or amended Article 234 of the Labor
Code, resulting in an invalid exercise by the DOLE of its delegated rule-making power. It thus posits
that the unions certificate of registration which was issued in violation of the letters of Article 234 of
the Labor Code[14] is void and of no effect, and that the CA committed grave abuse of discretion
when it affirmed the unions existence.
The Case for the Union
In a Resolution dated January 16, 2008,[15] the Court directed union board member Alex Espejo, in
lieu of union President Roberto Beltran whose present address could not be verified, to furnish the
Court a copy of the union comment/opposition to the companys motion for reconsideration dated
February 22, 2006 in CA G.R. SP No. 83847, which the union adopted as its comment on the
present petition.[16]
Through this comment/opposition,[17] the union submits that the company failed to show that
the CA committed reversible error in upholding the registration certificate issued to it by the BLR.
Citing Castillo v. National Labor Relations Commission,[18] it stressed that the issuance of the
certificate by the DOLE agencies was supported by substantial evidence, which should be entitled to
great respect and even finality.
The Courts Ruling
We resolve the core issue of whether D.O. 40-03 is a valid exercise of the rule-making
power of the DOLE.
We rule in the affirmative. Earlier in Progressive Development Corporation v. Secretary,
Department of Labor and Employment,[19] the Court encountered a similar question on the validity of
the old Section 3, Rule II, Book V of the Rules Implementing the Labor Code[20] which stated:
Union affiliation; direct membership with a national union. - The affiliate of a
labor federation or national union may be a local or chapter thereof or an
independently registered union.
a) The labor federation or national union concerned shall issue a charter
certificate indicating the creation or establishment of a local or chapter,
copy of which shall be submitted to the Bureau of Labor Relations within
thirty (30) days from issuance of such charter certificate.
xxxx
e) The local or chapter of a labor federation or national union shall have and
maintain a constitution and by-laws, set of officers and books of
accounts. For reporting purposes, the procedure governing the reporting
of independently registered unions, federations or national unions shall
be observed.
Interpreting these provisions of the old rules, the Court said that by force of law,[21] the local
or chapter of a labor federation or national union becomes a legitimate labor organization upon
compliance with Section 3, Rule II, Book V of the Rules Implementing the Labor Code, the only
requirement being the submission of the charter certificate to the BLR. Further, the Court noted that
Section 3 omitted several requirements which are otherwise required for union registration, as
follows:
1) The requirement that the application for registration must be signed by
at least 20% of the employees in the appropriate bargaining unit;
2) The submission of officers addresses, principal address of the labor
organization, the minutes of organization meetings and the list of the
workers who participated in such meetings;
3) The submission of the minutes of the adoption or ratification of the
constitution and by-laws and the list of the members who participated in
it.[22]
Notwithstanding these omissions, the Court upheld the governments implementing policy
expressed in the old rules when it declared in Progressive Development
Undoubtedly, the intent of the law in imposing lesser requirements in the case of a
branch or local of a registered federation or national union is to encourage the
affiliation of a local union with a federation or national union in order to increase the
local unions bargaining powers respecting terms and conditions of labor.[23]
It was this same Section 3 of the old rules that D.O. 40-03 fine-tuned when the DOLE amended the
rules on Book V of the Labor Code, thereby modifying the governments implementing policy on the
registration of locals or chapters of labor federations or national unions. The company now assails
this particular amendment as an invalid exercise of the DOLEs rule-making power.
We disagree. As in the case of D.O. 9 (which introduced the above-cited Section 3 of the old rules)
in Progressive Development, D.O. 40-03 represents an expression of the governments implementing
policy on trade unionism. It builds upon the old rules by further simplifying the requirements for the
establishment of locals or chapters. As in D.O. 9, we see nothing contrary to the law or the
Constitution in the adoption by the Secretary of Labor and Employment of D.O. 40-03 as this
department order is consistent with the intent of the government to encourage the affiliation of a local
union with a federation or national union to enhance the locals bargaining power. If changes were
made at all, these were those made to recognize the distinctions made in the law itself between
federations and their local chapters, and independent unions; local chapters seemingly have lesser
requirements because they and their members are deemed to be direct members of the federation to
which they are affiliated, which federations are the ones subject to the strict registration requirements
of the law.
In any case, the local union in the present case has more than satisfied the requirements the
petitioner complains about; specifically, the union has submitted: (1) copies of the ratified CBL; (2)
the minutes of the CBLs adoption and ratification; (3) the minutes of the organizational meetings; (4)
the names and addresses of the union officers; (5) the list of union members; (6) the list of rank-and-
file employees in the company; (7) a certification of non-existence of a CBA in the company; (8) the
resolution of affiliation with WASTO and the latters acceptance; and (9) their Charter Certificate.
These submissions were properly verified as required by the rules. In sum, the petitioner has no
factual basis for questioning the unions registration, as even the requirements for registration as an
independent local have been substantially complied with.
We, thus, find no compelling justification to nullify D.O. 40-03. Significantly, the Court
declared in another case:[24]
Pagpalain cannot also allege that Department Order No. 9 is violative of public
policy. x x x [T]he sole function of our courts is to apply or interpret the laws. It does
not formulate public policy, which is the province of the legislative and executive
branches of government. It cannot, thus, be said that the principles laid down by the
Court in Progressive and Protection Technology constitute public policy on the
matter. They do, however, constitute the Courts interpretation of public policy, as
formulated by the executive department through its promulgation of rules
implementing the Labor Code. However, this public policy has itself been changed by
the executive department, through the amendments introduced in Book V of the
Omnibus Rules by Department Order No. 9. It is not for us to question this change in
policy, it being a well-established principle beyond question that it is not within the
province of the courts to pass judgments upon the policy of legislative or executive
action.
SO ORDERED.
3. TAKATA (PHILIPPINES) CORPORATION, Petitioner, v. BUREAU OF LABOR RELATIONS
AND SAMAHANG LAKAS MANGGAGAWA NG TAKATA (SALAMAT), Respondents.
DECISION
PERALTA, J.:
Before us is a petition for review on certiorari filed by petitioner TAKATA Philippines Corporation
assailing the Decision1 dated December 22, 2010 and the Resolution2 dated March 28, 2011 of the
Court of Appeals in CA-G.R. SP No. 112406.
On July 7, 2009, petitioner filed with the Department of Labor and Employment (DOLE) Regional
Office a Petition3 for Cancellation of the Certificate of Union Registration of Respondent Samahang
Lakas Manggagawa ng Takata (SALAMAT) on the ground that the latter is guilty of
misrepresentation, false statement and fraud with respect to the number of those who participated in
the organizational meeting, the adoption and ratification of its Constitution and By-Laws, and in the
election of its officers. It contended that in the May 1, 2009 organizational meeting of respondent,
only 68 attendees signed the attendance sheet, and which number comprised only 17% of the total
number of the 396 regular rank- and-file employees which respondent sought to represent, and
hence, respondent failed to comply with the 20% minimum membership requirement. Petitioner
insisted that the document “Pangalan ng mga Kasapi ng Unyon” bore no signatures of the alleged
119 union members; and that employees were not given sufficient information on the documents
they signed; that the document “Sama-Samang Pahayag ng Pagsapi” was not submitted at the time
of the filing of respondent's application for union registration; that the 119 union members were
actually only 117; and, that the total number of petitioner's employees as of May 1, 2009 was 470,
and not 396 as respondent claimed.4cralawred
Respondent denied the charge and claimed that the 119 union members were more than the 20%
requirement for union registration. The document “Sama-Samang Pahayag ng Pagsapi sa Unyon”
which it presented in its petition for certification election5 supported their claim of 119 members.
Respondent also contended that petitioner was estopped from assailing its legal personality as it
agreed to a certification election and actively participated in the pre-election conference of the
certification election proceedings.6Respondent argued that the union members were informed of the
contents of the documents they signed and that the 68 attendees to the organizational meeting
constituted more than 50% of the total union membership, hence, a quorum existed for the conduct
of the said meeting.7cralawred
On August 27, 2009, DOLE Regional Director, Atty. Ricardo S. Martinez, Sr., issued a
Decision8 granting the petition for cancellation of respondent's certificate of registration, the
dispositive portion of which reads:ChanRoblesVirtualawlibrary
WHEREFORE, from the foregoing considerations, the petition is hereby GRANTED. Accordingly, the
respondent Union Certificate of Registration No. RO400A-2009-05-01-UR-LAG, dated May 19, 2009
is hereby REVOCKED (sic) and /or CANCELLED pursuant to paragraph (a) & (b), Section 3, Rule
XIV of Department Order No. 40-03 and the Samahang Lakas ng Manggagawa ng TAKATA
(SALAMAT) is hereby delisted from the roll of legitimate labor organization of this office.9
In revoking respondent's certificate of registration, the Regional Director found that the 68
employees who attended the organizational meeting was obviously less than 20% of the total
number of 396 regular rank-and-file employees which respondent sought to represent, hence, short
of the union registration requirement; that the attendance sheet which contained the signatures and
names of the union members totalling to 68 contradicted the list of names stated in the document
denominated as “Pangalan ng mga Kasapi ng Unyon.” The document “Sama-Samang Pahayag ng
Pagsapi” was not attached to the application for registration as it was only submitted in the petition
for certification election filed by respondent at a later date. The Regional Director also found that the
proceedings in the cancellation of registration and certification elections are two different and entirely
separate and independent proceedings which were not dependent on each other.
In its Answer,13 respondent claimed that there was no forum shopping as BMP's Paralegal Officer
was no longer authorized to file an appeal on behalf of respondent as the latter's link with BMP was
already terminated and only the Union President was authorized to file the appeal; and that it
complied with Department Order No. 40-03.
On December 9, 2009, after considering respondent's Appeal Memorandum with Formal Entry of
Appearance and petitioner's Answer, the BLR rendered its Decision14 reversing the Order of the
Regional Director, the decretal portion of which reads:ChanRoblesVirtualawlibrary
WHEREFORE, the appeal is hereby GRANTED. The Decision of Regional Director Ricardo S.
Martinez, Sr., dated 27 August 2009, is hereby REVERSED and SET ASIDE.
Accordingly, Samahang Lakas Manggagawa ng TAKATA (SALAMAT) shall remain in the roster of
labor organizations.15
In reversing, the BLR found that petitioner failed to prove that respondent deliberately and
maliciously misrepresented the number of rank-and-file employees. It pointed out petitioner's basis
for the alleged non-compliance with the minimum membership requirement for registration was the
attendance of 68 members to the May 1, 2009 organizational meeting supposedly comprising only
17% of the total 396 regular rank-and-file employees. However, the BLR found that the list of
employees who participated in the organizational meeting was a separate and distinct requirement
from the list of the names of members comprising at least 20% of the employees in the bargaining
unit; and that there was no requirement for signatures opposite the names of the union members;
and there was no evidence showing that the employees assailed their inclusion in the list of union
members.
Petitioner filed a motion for reconsideration, which was denied by the BLR in a Resolution16 dated
January 8, 2010.
Undaunted, petitioner went to the CA via a petition for certiorari under Rule 65.
After the submission of the parties' respective pleadings, the case was submitted for decision.
On December 22, 2010, the CA rendered its assailed decision which denied the petition and
affirmed the decision of the BLR. Petitioner's motion for reconsideration was denied in a Resolution
dated March 29, 2011.
Hence this petition for review filed by petitioner raising the following issues, to
wit:ChanRoblesVirtualawlibrary
THE HONORABLE COURT OF APPEALS COMMITTED GRAVE AND SERIOUS ERROR IN
AFFIRMING THE DECISION OF PUBLIC RESPONDENT BLR AND NOT FINDING ANY
VIOLATION BY SAMAHANG LAKAS MANGGAGAWA SA TAKATA (SALAMAT ) OF THE RULE ON
FORUM SHOPPING IN THE FILING OF TWO VERIFIED APPEALS FOR AND ITS BEHALF. BOTH
OF THE APPEALS SHOULD HAVE BEEN DISMISSED OUTRIGHT BY PUBLIC RESPONDENT
BLR, ON GROUND OF FORUM SHOPPING.
Anent the first issue, petitioner contends that respondent had filed two separate appeals with two
different representations at two different venues, in violation of the rule on multiplicity of suits and
forum shopping, and instead of dismissing both appeals, the appeal erroneously filed before the
Labor Secretary was the one held validly filed, entertained and even granted; that it is not within the
discretion of BLR to choose which between the two appeals should be entertained, as it is the fact of
the filing of the two appeals that is being prohibited and not who among the representatives therein
possessed the authority.
We find no error committed by the CA in finding that respondent committed no forum shopping. As
the CA correctly concluded, to wit:ChanRoblesVirtualawlibrary
It is undisputed that BMP Paralegal Officer Domingo P. Mole was no longer authorized to file an
appeal on behalf of union SALAMAT and that BMP was duly informed that its services was already
terminated. SALAMAT even submitted before the BLR its “Resolusyon Blg. 01-2009” terminating the
services of BMP and revoking the representation of Mr. Domingo Mole in any of the pending cases
being handled by him on behalf of the union. So, considering that BMP Paralegal Officer Domingo P.
Mole was no longer authorized to file an appeal when it filed the Notice and Memorandum of Appeal
to DOLE Regional Office No. IV-A, the same can no longer be treated as an appeal filed by union
SALAMAT. Hence, there is no forum shopping to speak of in this case as only the Appeal
Memorandum with Formal Entry of Appearance filed by Atty. Napoleon C. Banzuela, Jr. and Atty.
Jehn Louie W. Velandrez is sanctioned by SALAMAT.18
Since Mole's appeal filed with the BLR was not specifically authorized by respondent, such appeal is
considered to have not been filed at all. It has been held that “if a complaint is filed for and in behalf
of the plaintiff who is not authorized to do so, the complaint is not deemed filed. An unauthorized
complaint does not produce any legal effect.”19cralawred
Respondent through its authorized representative filed its Appeal Memorandum with Formal Entry of
Appearance before the Labor Secretary, and not with the BLR. As the appeal emanated from the
petition for cancellation of certificate of registration filed with the Regional Office, the decision
canceling the registration is appealable to the BLR, and not with the Labor Secretary. However,
since the Labor Secretary motu propio referred the appeal with the BLR, the latter can now act on it.
Considering that Mole's appeal with the BLR was not deemed filed, respondent’s appeal, through
Banzuela and Associates, which the Labor Secretary referred to the BLR was the only existing
appeal with the BLR for resolution. There is, therefore, no merit to petitioner's claim that BLR chose
the appeal of Banzuela and Associates over Mole's appeal.
The case of Abbott Laboratories Philippines, Inc. v. Abbott Laboratories Employees Union20 cited by
petitioner is not at all applicable in this case as the issue therein is the authority of the Labor
Secretary to review the decision of the Bureau of Labor Relations rendered in the exercise of its
appellate jurisdiction over decision of the Regional Director in cases involving cancellations of
certificate of registration of labor unions. We found no grave abuse of discretion committed by the
Secretary of Labor in not acting on therein petitioner's appeal. The decision of the Bureau of Labor
Relations on cases brought before it on appeal from the Regional Director are final and executory.
Hence, the remedy of the aggrieved party is to seasonably avail of the special civil action
of certiorari under Rule 65 and the Rules of Court. In this case, after the Labor Secretary motu
propio referred respondent's appeal filed with it to the BLR which rendered its decision reversing the
Regional Director, petitioner went directly to the CA via a petition for certiorari under Rule 65.
As to the second issue, petitioner seeks the cancellation of respondent's registration on grounds of
fraud and misrepresentation bearing on the minimum requirement of the law as to its membership,
considering the big disparity in numbers, between the organizational meeting and the list of
members, and so misleading the BLR that it obtained the minimum required number of employees
for purposes of organization and registration.
And after the issuance of the certificate of registration, the labor organization's registration could be
assailed directly through cancellation of registration proceedings in accordance with Articles 238 and
239 of the Labor Code. And the cancellation of union certificate of registration and the grounds
thereof are as follows:ChanRoblesVirtualawlibrary
ART. 238. Cancellation of Registration. - The certificate of registration of any legitimate labor
organization, whether national or local, may be cancelled by the Bureau, after due hearing, only on
the grounds specified in Article 239 hereof.
ART. 239. Grounds for Cancellation of Union Registration. - The following may constitute grounds for
cancellation of union registration:
(a) Misrepresentation, false statement or fraud in connection with the adoption or ratification of the
constitution and by-laws or amendments thereto, the minutes of ratification, and the list of members
who took part in the ratification;
(b) Misrepresentation, false statements or fraud in connection with the election of officers, minutes of
the election of officers, and the list of voters;
(c) Voluntary dissolution by the members.
Petitioner's charge that respondent committed misrepresentation and fraud in securing its certificate
of registration is a serious charge and must be carefully evaluated. Allegations thereof should be
compounded with supporting circumstances and evidence.21 We find no evidence on record to
support petitioner's accusation.
Petitioner's allegation of misrepresentation and fraud is based on its claim that during the
organizational meeting on May 1, 2009, only 68 employees attended, while respondent claimed that
it has 119 members as shown in the document denominated as “Pangalan ng mga Kasapi ng
Unyon;” hence, respondent misrepresented on the 20% requirement of the law as to its membership.
We do not agree.
It does not appear in Article 234 (b) of the Labor Code that the attendees in the organizational
meeting must comprise 20% of the employees in the bargaining unit. In fact, even the Implementing
Rules and Regulations of the Labor Code does not so provide. It is only under Article 234 (c) that
requires the names of all its members comprising at least twenty percent (20%) of all the employees
in the bargaining unit where it seeks to operate. Clearly, the 20% minimum requirement pertains to
the employees’ membership in the union and not to the list of workers who participated in the
organizational meeting. Indeed, Article 234 (b) and (c) provide for separate requirements, which
must be submitted for the union's registration, and which respondent did submit. Here, the total
number of employees in the bargaining unit was 396, and 20% of which was about 79. Respondent
submitted a document entitled “Pangalan ng Mga Kasapi ng Unyon” showing the names of 119
employees as union members, thus respondent sufficiently complied even beyond the 20% minimum
membership requirement. Respondent also submitted the attendance sheet of the organizational
meeting which contained the names and signatures of the 68 union members who attended the
meeting. Considering that there are 119 union members which are more than 20% of all the
employees of the bargaining unit, and since the law does not provide for the required number of
members to attend the organizational meeting, the 68 attendees which comprised at least the
majority of the 119 union members would already constitute a quorum for the meeting to proceed
and to validly ratify the Constitution and By-laws of the union. There is, therefore, no basis for
petitioner to contend that grounds exist for the cancellation of respondent's union registration. For
fraud and misrepresentation to be grounds for cancellation of union registration under Article 239 of
the Labor Code, the nature of the fraud and misrepresentation must be grave and compelling
enough to vitiate the consent of a majority of union members.22cralawred
Petitioner's claim that the alleged union members signed documents without adequate information is
not persuasive. The one who alleges a fact has the burden of proving it and a mere allegation is not
evidence.23 In fact, we note that not one of those listed in the document denominated as “Pangalan
ng Mga Kasapi ng Unyon” had come forward to deny their membership with respondent. Notably, it
had not been rebutted that the same union members had signed the document entitled “Sama-
Samang Pahayag ng Pagsapi,” thus, strengthening their desire to be members of the respondent
union.
Petitioner claims that in the list of members, there was an employee whose name appeared twice
and another employee who was merely a project employee. Such could not be considered a
misrepresentation in the absence of showing that respondent deliberately did so for the purpose of
increasing their union membership. In fact, even if those two names were not included in the list of
union members, there would still be 117 members which was still more than 20% of the 396 rank-
and-file employees.
As to petitioner's argument that the total number of its employees as of May 1, 2009 was 470, and
not 396 as respondent claimed, still the 117 union members comprised more than the 20%
membership requirement for respondent's registration.
The bare fact that two signatures appeared twice on the list of those who participated in the
organizational meeting would not, to our mind, provide a valid reason to cancel respondent’s
certificate of registration. The cancellation of a union’s registration doubtless has an impairing
dimension on the right of labor to self-organization. For fraud and misrepresentation to be grounds
for cancellation of union registration under the Labor Code, the nature of the fraud and
misrepresentation must be grave and compelling enough to vitiate the consent of a majority of union
members.
In this case, we agree with the BLR and the CA that respondent could not have possibly committed
misrepresentation, fraud, or false statements. The alleged failure of respondent to indicate with
mathematical precision the total number of employees in the bargaining unit is of no moment,
especially as it was able to comply with the 20% minimum membership requirement. Even if the total
number of rank-and-file employees of petitioner is 528, while respondent declared that it should only
be 455, it still cannot be denied that the latter would have more than complied with the registration
requirement. 25
WHEREFORE, premises considered, the petition for review is DENIED. The Decision dated
December 22, 2010 and the Resolution dated March 29, 2011 of the Court of Appeals, in CA-G.R.
SP No. 112406, are AFFIRMED.
SO ORDERED.
Velasco, Jr., (Chairperson), Villarama, Jr.,* Mendoza, and Leonen, JJ., concur.
- versus -
Present:
CORONA, J.,
Chairperson,
THE SECRETARY OF THE DEPARTMENT OF VELASCO, JR.,
LABOR AND EMPLOYMENT, CHIEF OF THE
BUREAU OF LABOR RELATIONS, DEPARTMENT NACHURA,
OF LABOR AND EMPLOYMENT, REGIONAL PERALTA, and
DIRECTOR OF DOLE REGIONAL OFFICE NUMBER
IV-A & DEL CASTILLO,* JJ.
Promulgated:
x------------------------------------------------------------------------------------x
DECISION
NACHURA, J.:
This is a petition for review on certiorari[1] under Rule 45 of the Rules of Court, seeking to annul the
Decision[2] dated December 20, 2007 and the Resolution[3] dated June 6, 2008 of the Court of
Appeals in CA-G.R. SP No. 98332.
On May 4, 2005, respondent Samahan Ng Mga Manggagawa Sa Mariwasa Siam Ceramics, Inc.
(SMMSC-Independent) was issued a Certificate of Registration[4] as a legitimate labor organization
by the Department of Labor and Employment (DOLE), Region IV-A.
On June 14, 2005, petitioner Mariwasa Siam Ceramics, Inc. filed a Petition for Cancellation of Union
Registration against respondent, claiming that the latter violated Article 234[5] of the Labor Code for
not complying with the 20% requirement, and that it committed massive fraud and misrepresentation
in violation of Article 239[6] of the same code.The case was docketed as Case No. RO400-0506-AU-
004.
On August 26, 2005, the Regional Director of DOLE IV-A issued an Order granting the petition,
revoking the registration of respondent, and delisting it from the roster of active labor unions.
Aggrieved, respondent appealed to the Bureau of Labor Relations (BLR).
In a Decision[7] dated June 14, 2006, the BLR granted respondents appeal and disposed as follows
SO DECIDED.[8]
Petitioner filed a Motion for Reconsideration but the BLR denied it in a Resolution [9] dated February
2, 2007.
Petitioner sought recourse with the Court of Appeals (CA) through a Petition for Certiorari; but the
CA denied the petition for lack of merit.
Petitioners motion for reconsideration of the CA Decision was likewise denied, hence, this petition
based on the following grounds
The Honorable Court of Appeals seriously erred in ruling that the affidavits of
recantation cannot be given credence[;]
The Honorable Court of Appeals seriously erred when it ruled that private
respondent union did not commit misrepresentation, fraud or false statement.[10]
The petitioner insists that respondent failed to comply with the 20% union membership requirement
for its registration as a legitimate labor organization because of the disaffiliation from the total
number of union members of 102 employees who executed affidavits recanting their union
membership.
It is, thus, imperative that we peruse the affidavits appearing to have been executed by these
affiants.
____________________
Nagsasalaysay
Evidently, these affidavits were written and prepared in advance, and the pro forma affidavits were
ready to be filled out with the employees names and signatures.
The first common allegation in the affidavits is a declaration that, in spite of his hesitation, the
affiant was forced and deceived into joining the respondent union. It is worthy to note, however, that
the affidavit does not mention the identity of the people who allegedly forced and deceived the affiant
into joining the union, much less the circumstances that constituted such force and deceit. Indeed,
not only was this allegation couched in very general terms and sweeping in nature, but more
importantly, it was not supported by any evidence whatsoever.
The second allegation ostensibly bares the affiants regret for joining respondent union and
expresses the desire to abandon or renege from whatever agreement he may have signed regarding
his membership with respondent.
Simply put, through these affidavits, it is made to appear that the affiants recanted their
support of respondents application for registration.
In appreciating affidavits of recantation such as these, our ruling in La Suerte Cigar and
Cigarette Factory v. Director of the Bureau of Labor Relations[11] is enlightening, viz.
On the second issuewhether or not the withdrawal of 31 union members from NATU
affected the petition for certification election insofar as the 30% requirement is
concerned, We reserve the Order of the respondent Director of the Bureau of Labor
Relations, it appearing undisputably that the 31 union members had withdrawn their
support to the petition before the filing of said petition. It would be otherwise if the
withdrawal was made after the filing of the petition for it would then be presumed that
the withdrawal was not free and voluntary. The presumption would arise that the
withdrawal was procured through duress, coercion or for valuable consideration. In
other words, the distinction must be that withdrawals made before the filing of the
petition are presumed voluntary unless there is convincing proof to the contrary,
whereas withdrawals made after the filing of the petition are deemed involuntary.
The reason for such distinction is that if the withdrawal or retraction is made before
the filing of the petition, the names of employees supporting the petition are
supposed to be held secret to the opposite party. Logically, any such withdrawal or
retraction shows voluntariness in the absence of proof to the contrary. Moreover, it
becomes apparent that such employees had not given consent to the filing of the
petition, hence the subscription requirement has not been met.
When the withdrawal or retraction is made after the petition is filed, the employees
who are supporting the petition become known to the opposite party since their
names are attached to the petition at the time of filing. Therefore, it would not be
unexpected that the opposite party would use foul means for the subject employees
to withdraw their support.[12]
In the instant case, the affidavits of recantation were executed after the identities of the union
members became public, i.e., after the union filed a petition for certification election on May 23,
2005, since the names of the members were attached to the petition. The purported withdrawal of
support for the registration of the union was made after the documents were submitted to the DOLE,
Region IV-A. The logical conclusion, therefore, following jurisprudence, is that the employees were
not totally free from the employers pressure, and so the voluntariness of the employees execution of
the affidavits becomes suspect.
It is likewise notable that the first batch of 25 pro forma affidavits shows that the affidavits were
executed by the individual affiants on different dates from May 26, 2005 until June 3, 2005, but they
were all sworn before a notary public on June 8, 2005.
There was also a second set of standardized affidavits executed on different dates from May
26, 2005 until July 6, 2005. While these 77 affidavits were notarized on different dates, 56 of these
were notarized on June 8, 2005, the very same date when the first set of 25 was notarized.
Considering that the first set of 25 affidavits was submitted to the DOLE on June 14, 2005, it
is surprising why petitioner was able to submit the second set of affidavits only on July 12, 2005.
Accordingly, we cannot give full credence to these affidavits, which were executed under suspicious
circumstances, and which contain allegations unsupported by evidence. At best, these affidavits are
self-serving. They possess no probative value.
A retraction does not necessarily negate an earlier declaration. For this reason, retractions are
looked upon with disfavor and do not automatically exclude the original statement or declaration
based solely on the recantation. It is imperative that a determination be first made as to which
between the original and the new statements should be given weight or accorded belief, applying the
general rules on evidence. In this case, inasmuch as they remain bare allegations, the purported
recantations should not be upheld.[13]
Nevertheless, even assuming the veracity of the affidavits of recantation, the legitimacy of
respondent as a labor organization must be affirmed. While it is true that the withdrawal of support
may be considered as a resignation from the union, the fact remains that at the time of the unions
application for registration, the affiants were members of respondent and they comprised more than
the required 20% membership for purposes of registration as a labor union. Article 234 of the Labor
Code merely requires a 20% minimum membership during the application for union registration. It
does not mandate that a union must maintain the 20% minimum membership requirement all
throughout its existence.[14]
Respondent asserts that it had a total of 173 union members at the time it applied for
registration. Two names were repeated in respondents list and had to be deducted, but the total
would still be 171 union members. Further, out of the four names alleged to be no longer connected
with petitioner, only two names should be deleted from the list since Diana Motilla and T.W. Amutan
resigned from petitioner only on May 10, 2005 and May 17, 2005, respectively, or after respondents
registration had already been granted. Thus, the total union membership at the time of registration
was 169. Since the total number of rank-and-file employees at that time was 528, 169 employees
would be equivalent to 32% of the total rank-and-file workers complement, still very much above the
minimum required by law.
For the purpose of de-certifying a union such as respondent, it must be shown that there was
misrepresentation, false statement or fraud in connection with the adoption or ratification of the
constitution and by-laws or amendments thereto; the minutes of ratification; or, in connection with the
election of officers, the minutes of the election of officers, the list of voters, or failure to submit these
documents together with the list of the newly elected-appointed officers and their postal addresses to
the BLR.[15]
The bare fact that two signatures appeared twice on the list of those who participated in the
organizational meeting would not, to our mind, provide a valid reason to cancel respondents
certificate of registration. The cancellation of a unions registration doubtless has an impairing
dimension on the right of labor to self-organization. For fraud and misrepresentation to be grounds
for cancellation of union registration under the Labor Code, the nature of the fraud and
misrepresentation must be grave and compelling enough to vitiate the consent of a majority of union
members.
In this case, we agree with the BLR and the CA that respondent could not have possibly
committed misrepresentation, fraud, or false statements. The alleged failure of respondent to
indicate with mathematical precision the total number of employees in the bargaining unit is of no
moment, especially as it was able to comply with the 20% minimum membership requirement. Even
if the total number of rank-and-file employees of petitioner is 528, while respondent declared that it
should only be 455, it still cannot be denied that the latter would have more than complied with the
registration requirement.
WHEREFORE, the petition is DENIED. The assailed December 20, 2007 Decision and the
June 6, 2008 Resolution of the Court of Appeals are AFFIRMED. Costs against petitioner.
SO ORDERED.
Only the local union may invoke the union security clause in the CBA.
The controversy between ESPI and the respondents originated from the Federation's act of expelling
the union officers and demanding their dismissal from ESPI. Thus, to arrive at a proper resolution of
this case, one question to be answered is whether the Federation may invoke the union security
clause in the CBA.
"Union security is a generic term, which is applied to and comprehends 'closed shop,' 'union shop,'
'maintenance of membership,' or any other form of agreement which imposes upon employees the
obligation to acquire or retain union membership as a condition affecting employment. There is union
shop when all new regular employees are required to join the union within a certain period as a
condition for their continued employment. There is maintenance of membership shop when
employees, who are union members as of the effective date of the agreement, or who thereafter
become members, must maintain union membership as a condition for continued employment until
they are promoted or transferred out of the bargaining unit, or the agreement is terminated. A closed
shop, on the other hand, may be defined as an enterprise in which, by agreement between the
employer and his employees or their representatives, no person may be employed in any or certain
agreed departments of the enterprise unless he or she is, becomes, and, for the duration of the
agreement, remains a member in good standing of a union entirely comprised of or of which the
employees in interest are a part."21
Before an employer terminates an employee pursuant to the union security clause, it needs to
determine and prove that: (1) the union security clause is applicable; (2) the union is requesting the
enforcement of the union security provision in the CBA; and (3) there is sufficient evidence to
support the decision of the union to expel the employee from the union.22
In this case, the primordial requisite, i.e., the union is requesting the enforcement of the union
security provision in the CBA, is clearly lacking. Under the Labor Code, a chartered local union
acquires legal personality through the charter certificate issued by a duly registered federation or
national union and reported to the Regional Office.23 "A local union does not owe its existence to the
federation with which it is affiliated. It is a separate and distinct voluntary association owing its
creation to the will of its members. Mere affiliation does not divest the local union of its own
personality, neither does it give the mother federation the license to act independently of the local
union. It only gives rise to a contract of agency, where the former acts in representation of the latter.
Hence, local unions are considered principals while the federation is deemed to be merely their
agent."24
The union security clause in the CBA between ESPI and the local union provides:
SECTION 1. Union Shop. All regular, permanent employees covered by this Agreement who are
members of the UNION as of the date of effectivity of this Agreement as well as any employees who
shall subsequently become members of the UNION during the lifetime of this Agreement or any
extension, thereof, shall as a condition of continued employment, maintain their membership in the
UNION during the term of this Agreement or any extension thereof.
xxxx
SECTION 3. The COMPANY shall terminate the services of any concerned employee when so
requested by the UNION for any of the following reasons:
a. Voluntary Resignation from the Union during the term of this Agreement or any extension thereof;
b. Non-payment of membership fee, regular monthly dues, mutual aid benefit and other
assessments submitted by the UNION to the COMPANY;
c. Violation of the UNION Constitution and Bylaws. The UNION shall furnish the COMPANY a copy
of their Constitution and Bylaws and any amendment thereafter.
d. Joining of another Union whose interest is adverse to the UNION, AWATU, during the lifetime of
this Agreement.
e. Other acts which are inimical to the interests of the UNION and AWATU.25
There is no doubt that the union referred to in the foregoing provisions is the Ergonomic Systems
Employees Union or the local union as provided in Article I of the CBA.26 A perusal of the CBA
shows that the local union, not the Federation, was recognized as the sole and exclusive collective
bargaining agent for all its workers and employees in all matters concerning wages, hours of work,
and other terms and conditions of employment. Consequently, only the union may invoke the union
security clause in case any of its members commits a violation thereof. Even assuming that the
union officers were disloyal to the Federation and committed acts inimical to its interest, such
circumstance did not give the Federation the prerogative to demand the union officers' dismissal
pursuant to the union security clause which, in the first place, only the union may rightfully invoke.
Certainly, it does not give the Federation the privilege to act independently of the local union. At
most, what the Federation could do is to refuse to recognize the local union as its affiliate and revoke
the charter certificate it issued to the latter. In fact, even if the local union itself disaffiliated from the
Federation, the latter still has no right to demand the dismissal from employment of the union officers
and members because concomitant to the union's prerogative to affiliate with a federation is its right
to disaffiliate therefrom which the Court explained in Philippine Skylanders, Inc. v. NLRC,27viz:
The right of a local union to disaffiliate from its mother federation is not a novel thesis unillumined by
case law. In the landmark case of Liberty Cotton Mills Workers Union vs. Liberty Cotton Mills, Inc.,
we upheld the right of local unions to separate from their mother federation on the ground that as
separate and voluntary associations, local unions do not owe their creation and existence to the
national federation to which they are affiliated but, instead, to the will of their members. The sole
essence of affiliation is to increase, by collective action, the common bargaining power of local
unions for the effective enhancement and protection of their interests. Admittedly, there are times
when without succor and support local unions may find it hard, unaided by other support groups, to
secure justice for themselves.
Yet the local unions remain the basic units of association, free to serve their own interests subject to
the restraints imposed by the constitution and bylaws of the national federation, and free also to
renounce the affiliation upon the terms laid down in the agreement which brought such affiliation into
existence.28
In sum, the Federation could not demand the dismissal from employment of the union officers on the
basis of the union security clause found in the CBA between ESPI and the local union.
A strike is deemed illegal for failure to take a strike vote and to submit a report thereon to the
NCMB.
A strike is the most powerful weapon of workers in their struggle with management in the course of
setting their terms and conditions of employment. As such, it either breathes life to or destroys the
union and its members.29
Procedurally, for a strike to be valid, it must comply with Article 27830 of the Labor Code, which
requires that: (a) a notice of strike be filed with the NCMB 30 days before the intended date thereof,
or 15 days in case of unfair labor practice; (b) a strike vote be approved by a majority of the total
union membership in the bargaining unit concerned, obtained by secret ballot in a meeting called for
that purpose; and (c) a notice be given to the NCMB of the results of the voting at least seven days
before the intended strike. These requirements are mandatory, and the union's failure to comply
renders the strike illegal.31
The union filed a notice of strike on 20 February 2002.32 The strike commenced on 21 February
2002.33The strike vote was taken on 2 April 200234 and the report thereon was submitted to the
NCMB on 4 April 2002.35 Indeed, the first requisite or the cooling-off period need not be observed
when the ground relied upon for the conduct of strike is union-busting.36 Nevertheless, the second
and third requirements are still mandatory. In this case, it is apparent that the union conducted a
strike without seeking a strike vote and without submitting a report thereon to the DOLE. Thus, the
strike which commenced on 21 February 2002 was illegal.
Liabilities of union officers and members
Article 279(a)37 of the Labor Code provides:
Art. 279. Prohibited activities. - (a) x x x
xxxx
Any union officer who knowingly participates in an illegal strike and any worker or union officer who
knowingly participates in the commission of illegal acts during a strike may be declared to have lost
his employment status: Provided, That mere participation of a worker in a lawful strike shall not
constitute sufficient ground for termination of his employment, even if a replacement had been hired
by the employer during such lawful strike.
In the determination of the consequences of illegal strikes, the law makes a distinction between
union members and union officers. The services of an ordinary union member cannot be terminated
for mere participation in an illegal strike; proof must be adduced showing that he or she committed
illegal acts during the strike. A union officer, on the other hand, may be dismissed, not only when he
actually commits an illegal act during a strike, but also if he knowingly participates in an illegal
strike.38
In the present case, respondents-union officers stand to be dismissed as they conducted a strike
despite knowledge that a strike vote had not yet been approved by majority of the union and the
corresponding strike vote report had not been submitted to the NCMB.
With respect to respondents-union members, the petitioners merely alleged that they committed
illegal acts during the strike such as obstruction of ingress to and egress from the premises of ESPI
and execution of acts of violence and intimidation. There is, however, a dearth of evidence to prove
such claims. Hence, there is no basis to dismiss respondents-union members from employment on
the ground that they committed illegal acts during the strike.
While it is true that the award of back wages is a legal consequence of a finding of illegal dismissal,
in G & S Transport Corporation v. Infante,39 the Court pronounced that the dismissed workers are
entitled only to reinstatement considering that they did not render work for the employer during the
strike, viz:
With respect to back wages, the principle of a "fair day's wage for a fair day's labor" remains
as the basic factor in determining the award thereof. If there is no work performed by the
employee there can be no wage or pay unless, of course, the laborer was able, willing and ready to
work but was illegally locked out, suspended or dismissed or otherwise illegally prevented from
working. While it was found that respondents expressed their intention to report back to work, the
latter exception cannot apply in this case. In Philippine Marine Officers' Guild v. Compañia Maritima,
as affirmed in Philippine Diamond Hotel and Resort v. Manila Diamond Hotel Employees Union, the
Court stressed that for this exception to apply, it is required that the strike be legal, a situation
that does not obtain in the case at bar.40 (emphases supplied)
Thus, in the case at bar, respondents-union members' reinstatement without back wages suffices for
the appropriate relief. Fairness and justice dictate that back wages be denied the employees who
participated in the illegal concerted activities to the great detriment of the employer.41
Nevertheless, separation pay is made an alternative relief in lieu of reinstatement in certain
circumstances, like: (a) when reinstatement can no longer be effected in view of the passage of a
long period of time or because of the realities of the situation; (b) reinstatement is inimical to the
employer's interest; (c) reinstatement is no longer feasible; (d) reinstatement does not serve the best
interests of the parties involved; (e) the employer is prejudiced by the workers' continued
employment; (f) facts that make execution unjust or inequitable have supervened; or (g) strained
relations between the employer and employee.42
Given the lapse of considerable time from the occurrence of the strike, the Court rules that the award
of separation pay of one (1) month salary for each year of service, in lieu of reinstatement, is in
order. This relief strikes a balance between the respondents-union members who may not have
known that they were participating in an illegal strike but who, nevertheless, have rendered service
to the company for years prior to the illegal strike which caused a rift in their relations, and the
employer who definitely suffered losses on account of respondents-union members' failure to report
to work during the illegal strike.
WHEREFORE, the petition is PARTIALLY GRANTED. The 21 September 2010 Decision and 14
January 2011 Resolution of the Court of Appeals in CA-G.R. SP No. 102802
are AFFIRMED with MODIFICATIONin that petitioners are hereby ORDERED to pay each of the
above-named individual respondents, except union officers who are hereby declared validly
dismissed, separation pay equivalent to one (1) month salary for every year of service. Whatever
sums already received from petitioners under any release, waiver or quitclaim shall be deducted
from the total separation pay due to each of them.
SO ORDERED.
9. SAN MIGUEL FOODS, INC.-CEBU B-MEG FEED PLANT, petitioner, vs. HON. BIENVENIDO
E. LAGUESMA, Undersecretary of DOLE and ILAW AT BUKLOD NG MANGGAGAWA
(IBM), respondents.
DECISION
HERMOSISIMA, JR., J.:
This is a petition for certiorari under Rule 65 to review and set aside two Resolutions of
Mediator-Arbiter Achilles V. Manit, dated January 5, 1994 and April 6, 1994, and the affirmation
Order on appeal of the public respondent, Undersecretary Bienvenido E. Laguesma of the
Department of Labor and Employment. The petition below was entitled: In Re: Petition for Direct
Certification as the Sole and Exclusive Bargaining Agent of All Monthly Paid Employees of SMFI-
Cebu B-Meg Feeds Plant, docketed as OS-MA-A-3-51-94 (RO700-9309-RU-036).
The essential facts are not disputed.
On September 24, 1993, a petition for certification election among the monthly-paid employees
of the San Miguel Foods, Inc.-Cebu B-Meg Feeds Plant was filed by private respondent labor
federation Ilaw at Buklod ng Manggagawa (IBM, for brevity) before Med-Arbiter Achilles V. Manit,
alleging, inter alia, that it is a legitimate labor organization duly registered with the Department of
labor and Employment (DOLE) under the Registration Certificate No. 5369-IP. SMFI-Cebu B-Meg
Feeds Plant (SMFI, for brevity), herein petitioner, is a business entity duly organized and existing
under the laws of the Philippines which employs roughly seventy-five (75) monthly paid employees,
almost all of whom support the present petition. It was submitted in said petition that there has been
no certification election conducted in SMFI to determine the sole and exclusive bargaining agent
thereat for the past two years and that the proposed bargaining unit, which is SMFIs monthly paid
employees, is an unorganized one. It was also stated therein that petitioner IBM (herein private
respondent) has already complied with the mandatory requirements for the creation of its local or
affiliate in SMFIs establishment.
On October 25, 1993, herein petitioner SMFI filed a Motion to Dismiss the aforementioned
petition dated September 24, 1993 on the ground that a similar petition remains pending between
the same parties for the same cause of action before Med-Arbiter Achilles V. Manit.
SMFI was referring to an evidently earlier petition, docketed as CE CASE NO R0700-9304-RU-
016, filed on April 28, 1993 before the office of Med-Arbiter Manit. Indeed, both petitions involved the
same parties, cause of action and relief being prayed for, which is the issuance of an order by the
Med-Arbiter allowing the conduct of a certification election in SMFIs establishment. The contention is
that the judgment that may be rendered in the first petition would be determinative of the outcome of
the second petition, dated September 24, 1993.
On December 2, 1993, private respondent IBM filed its Opposition to SMFIs Motion to Dismiss
contending, among others, that the case referred to by SMFI had already been resolved by Med-
Arbiter Manit in his Resolution and Order date July 26, 1993[1] and September 2,
1993,[2] respectively, wherein IBMs first petition for certification election was denied mainly due to
IBMs failure to comply with certain mandatory requirements of the law. This denial was affirmed by
the Med-Arbiter in another Order dated November 12, 1993[3] wherein the Resolutions dated July 26,
1993 and September 2, 1993 were made to stand. Thus, IBM argues that there having been no
similar petition pending before Med-Arbiter Manit, another petition for certification election may be
refiled as soon as the said requirements are met. These requirements were finally satisfied before
the second petition for certification election was brought on September 24, 1993.
On January 5, 1994, Med-Arbiter Manit, this time, granted the second petition for certification
election of private respondent IBM in this wise:
Let, therefore, a certification election be conducted among the monthly paid rank and file
employees of SMFI-CEBU B-MEG FEEDS PLANT at Lo-oc, Mandaue City. The choices
shall be: YES-for IBM AT SMFI-CEBU B-MEG; and NO-for No Union.
The parties are hereby notified of the pre-election conference which will take place
on January 17, 1994 at 3:00 oclock in the afternoon to set the date and time of the election
and to thresh out the mechanics thereof. On said date and time the respondent is directed
to submit the payroll of its monthly paid rank and file employees for the month of June 1993
which shall be the basis for the list of the eligible voters. The petitioner is directed to be
ready to submit a list of the monthly paid rank and file employees of SMFI-CEBU B-MEG
FEEDS PLANT when the respondent fails to submit the required payroll.
SO ORDERED.[4]
Petitioner SMFI appealed the foregoing Order to the Secretary of Labor and Employment
alleging that the Med-Arbiter erred in directing the conduct of certification election considering that
the local or chapter of IBM at SMFI is still not a legitimate labor organization with a right to be
certified as the exclusive bargaining agent in petitioners establishment based on two
grounds: (1) the authenticity and due execution of the Charter Certificate submitted by IBM in favor
of its local at SMFI cannot yet be ascertained as it is still now known who is the legitimate and
authorized representative of the IBM Federation who may validly issue said Charter Certificate; and
(2) a group of workers or a local union shall acquire legal personality only upon the issuance of a
Certificate of Registration by the Bureau of Labor Relations under Article 234 of the Labor Code,
which IBM at SMFI did not possess.
In a resolution dated April 6, 1994, public respondent Undersecretary Bienvenido Laguesma, by
authority of the Secretary of Labor and Employment, denied petitioners appeal, viz.:
WHEREFORE, the appeal is hereby denied for lack of merit and the Order of the Med-
Arbiter is hereby affirmed.
Let the records of this case be forwarded to the Regional Office of origin for the immediate
conduct of certification election subject to the usual pre-election conference.
SO RESOLVED.[5]
Thereafter, a Motion for Reconsideration was filed which was also denied by the public
respondent in his Order dated May 24, 1994.[6]
Hence, the instant petition interposing the following justifications:
1) THE HONORABLE UNDERSECRETARY BIENVENIDO E. LAGUESMA GRAVELY
ABUSED HIS DISCRETION WHEN HE ARBITRARILY RULED THAT A LOCAL
OR CHAPTER OF A LABOR FEDERATION, LIKE RESPONDENT IBM, NEED
NOT OBTAIN A CERTIFICATE OF REGISTRATION FROM THE BUREAU OF
LABOR RELATIONS TO ACQUIRE LEGAL PERSONALITY, WHEN ARTICLE
234 OF THE LABOR CODE OF THE PHILIPPINES AND SECTION 3 OF RULE
II OF BOOK V OF THE RULES IMPLEMENTING THE LABOR CODE, AS
AMENDED, CLEARLY PROVIDES THAT A GROUP OF WORKERS OR A
LOCAL UNION SHALL ACQUIRE LEGAL PERSONALITY ONLY UPON THE
ISSUANCE OF THE CERTIFICATE OF REGISTRATION BY THE BUREAU OF
LABOR RELATIONS. AND,
2) THE HONORABLE UNDERSECRETARY BIENVENIDO E. LAGUESMA GRAVELY
ABUSED HIS DISCRETION WHEN HE PREMATURELY AND ARBITRARILY
RULED THAT RESPONDENT IBM IS A LEGITIMATE LABOR ORGANIZATION
WHEN THE AUTHENTICITY AND DUE EXECUTION OF THE CHARTER
CERTIFICATE SUBMITTED BY RESPONDENT IBM CANNOT YET BE
ASCERTAINED BECAUSE IT IS STILL NOT KNOWN WHO ARE THE
LEGITIMATE OFFICERS OF THE IBM FEDERATION WHO MAY VALIDLY
ISSUE SAID CHARTER CERTIFICATE AS THE CASE FILED TO RESOLVE
THE ISSUE ON WHO ARE THE LEGITIMATE OFFICERS OF THE IBM
FEDERATION IS STILL PENDING RESOLUTION BEFORE THIS
HONORABLE SUPREME COURT.[7]
The petition has no merit.
Petitioner asserts that IBM at SMFI is not a legitimate labor organization notwithstanding the
fact that it is a local or chapter of the IBM Federation. This is so because under Article 234 of the
Labor Code, any labor organization shall acquire legal personality upon the issuance of the
Certificate of Registration by the Bureau of Labor Relations.
We do not agree.
I
Article 212(h) of the Labor Code defines a legitimate labor organization as any labor
organization duly registered with the Department of Labor and Employment, and includes any
branch or local thereof.
It is important to determine whether or not a particular labor organization is legitimate since
legitimate labor organizations have exclusive rights under the law which cannot be exercised by non-
legitimate unions, one of which is the right to be certified as the exclusive representative of all the
employees in an appropriate collective bargaining unit for purposes of collective bargaining. These
rights are found under Article 242 of the Labor Code, to wit:
ART. 242. Rights of legitimate organizations.--A legitimate labor organization shall have the
right:
(a) To act as the representative of its members for the purpose of collective bargaining;
(b) To be certiified as the exclusive representative of all the employees in an appropriate collective
bargaining unit for purposes of collective bargaining;
(c) To be furnished by the employer, upon written request, with his annual audited financial
statements, including the balance sheet and the profit and loss statement, within thirty (30) calendar
days from the date of receipt of the request, after the union has been duly recognized by the
employer or certified as the sole and exclusive bargaining representative of the employees in the
bargaining unit, or within sixty (60) calendar days before the expiration of the existing collective
bargaining agreement, or during the collective bargaining negotiation;
(d) To own property, real or personal, for the use and benefit of the labor organization and its
members;
(e) To sue and be sued in its registered name; and
(f) To undertake all other activities designed to benefit the organization and its members, including
cooperative, housing welfare and other projects not contrary to law.
x x x x x x x x x."
The pertinent question, therefore, must be asked: When does a labor organization acquire
legitimacy?
Ordinarily, a labor organization attains the status of legitamacy only upon the issuance in its
name of a Certificate of Registration by the Bureau of Labor Relations pursuant to Articles 234 and
235 of the Labor Code, viz.:
ART. 234. Requirements of registration.--Any applicant labor organization, association or
group of unions or workers shall acquire legal personality and shall be entitled to the rights
and privileges granted by law to legitimate labor organizations upon issuance of the
certificate of registration based on the following requirements:
(a) Fifty pesos (P50.00) registration fee;
(b) The names of its officers, their addresses, the principal address of the labor organization, the
minutes of the organizational meetings and the list of the workers who participated in such meetings;
(c) The names of all its members comprising at least twenty percent (20%) of all the employees in
the bargaining unit where it seeks to operate;
(d) If the applicant union has been in existence for one or more years, copies of its annual financial
reports; and
(e) Four (4) copies of the constitution and by-laws of the applicant union, minutes of its adoption or
ratification, and the list of the members who participated in it.
ART. 235. Action on application. -- The Bureau shall act on all applications for registration
within thirty (30) days from filing.
All requisite documents and papers shall be certified under oath by the secretary or the
treasurer of the organization, as the case may be, and attested to by its president.
The foregoing procedure is not the only way by which a labor union may become legitimate,
however. When an unregistered union becomes a branch, local or chapter of a federation, some of
the aforementioned requirements for registration are no longer required.[8] Section 3, Rule II, Book V
of the Implementing Rules of the Labor Code governs the procedure for union affiliation, the relevant
portions of which provide:
Sec. 3. Union Affiliation: Direct Membership with National Union. An affiliate of a labor
federation or national union may be a local or chapter thereof or an independently
registered union.
(a) The labor federation or national union concerned shall issue a chapter certificate
indicating the creation or establishment of a local or chapter, copy of which shall be
submitted to the Bureau of Labor Relations within thirty (30) days from issuance of such
charter certificate.
(b) An independently registered union shall be considered an affiliate of a labor federation
or national union after submission to the Bureau of the contract or agreement of affiliation
within thirty (30) days after its execution.
xxxxxxxxx
(e) The local or chapter of a labor federation or national union shall have and maintain a
constitution and by-laws, set of officers and book of accounts. For reporting purposes, the
procedure governing the reporting of independently registered unions, federations or
national unions shall be observed.
Paragraph (a) refers to a local or chapter of a federation which did not undergo the rudiments of
registration while paragraph (b) refers to an independently registered union which affiliated with a
federation. Implicit in the foregoing differentiation is the fact that a local or chapter need not be
independently registered. By force of law (in this case, Article 212 [h]), such local or chapter
becomes a legitimate labor organization upon compliance with the aforementioned provisions of
Section 3[9] (a) and (e), without having to be issued a Certificate of Registration in its favor by the
BLR.
The cases of Lopez Sugar Corporation v. Secretary of Labor and Employment,[10] Phoenix Iron
and Steel Corporation v. Secretary of Labor and Employment,[11] and Protection Technology, Inc. v.
Secretary, Department of Labor and Employment,[12] all going back to our landmark holding
in Progressive Development Corporation v. Secretary, Department of Labor and
Employment,[13] unequivocably laid down the rule, thus:
A local or chapter therefore becomes a legitimate labor organization only upon submission
of the following to the BLR:
1) A charter certificate, within 30 days from its issuance by the labor federation or
national union, and
2) The constitution and by-laws, a statement on the set of officers, and the books
of accounts all of which are certified under oath by the secretary or
treasurer, as the case may be, of such local or chapter, and attested to by its
president.
Absent compliance with these mandatory requirements, the local or chapter does not
become a legitimate labor organization.
Corollarily, the satisfaction of all these requirements by the local or chapter shall vest upon it the
status of legitimacy with all its concomitant statutory privileges, one of which is the right to be
certified as the exclusive representative of all the employees in an appropriate bargaining unit.
In the case at bench, public respondent Bienvenido E. Laguesma, in affirming the finding of the
Med-Arbiter that IBM at SMFI is a legitimate labor organization,[14] made the following material
pronouncements amply supported by the records:
[t]he resolution of the issue raised by the respondent on whether or not petitioner is a
legitimate labor organization will depend on the documents submitted by the petitioner in
the second petition.
A close scrutiny of the records shows that at the time of the filing of the subject petition on
24 September 1993 by the petitioner Ilaw at Buklod ng Manggagawa, for and in behalf of
its local affiliate IBM at SMFI-CEBU B-MEG, the latter has been clothed with the status
and/or character of a legitimate labor organization. This is so, because on 19 July 1993,
petitioner submitted to the Bureau of Labor Relations (BLR), this Department, the following
documents: charter certificate, constitution and by-laws, names and addresses of the union
officers and a certification of the unions secretary on the non-availability of the unions
Books of Accounts. Said documents (except the charter certificate) are certified under oath
and attested to by the local unions secretary and President, respectively.[15]
Petitioner SMFI does not dispute the fact that IBM at SMFI has complied with the second set of
requirements, i.e., constitution, by-laws, et. al. What is controverted is the non-compliance with the
requirement as to the charter certificate which must be submitted to the BLR within thirty (30) days
from its issuance by the labor federation. While the presence of a charter certificate is conceded,
petitioner maintains that the validity and authenticity of the same cannot yet be ascertained as it is
still not known who is the legitimate and authorized representative of the IBM Federation who may
validly issue said charter certificate in favor of its local, IBM at SMFI. According to petitioner, there
are two (2) contending sets of officers of the IBM Federation at the time the charter certificate was
issued in favor of IBM at SMFI, the faction of Mr. Severino O. Meron and that of Mr. Edilberto B.
Galvez.
On this point, public respondent, in upholding the legitimate status of IBM at SMFI, backed up
by the Solicitor General, had this to say:
The contention of the respondent that unless and until the issue on who is the legitimate
national president, of the Ilaw at Buklod ng Manggagawa is resolved, the petitioner cannot
claim that it has a valid charter certificate necessary for it to acquire legal personality is
untenable. We wish to stress that the resolution of the said issue will not in any way affect
the validity of the charter certificate issued by the IBM in favor of the local union. It must be
borne in mind that the said charter certificate was issued by the IBM in its capacity as a
labor organization, a juridical entity which has a separate and distinct legal personality from
its members. When as in this case, there is no showing that the Federation acting as a
separate entity is questioning the legality of the issuance of the said charter certificate, the
legality of the issuance of the same in favor of the local union is presumed. This,
notwithstanding the alleged controversy on the leadership of the federation.[16]
We agree with this position of the public respondent and the Solicitor General. In addition,
private respondents Comment to this petition indicates that in the election of officers held to
determine the representatives of IBM, the faction of Mr. Meron lost to the group of Mr. Edilberto
Galvez, and the latter was acknowledged as the duly elected IBM National President.[17]Thus, the
authority of Mr. Galvez to sign the charter certificate of IBM at SMFI, as President of the IBM
Federation,[18] can no longer be successfully questioned. A punctilious examination of the records
presents no evidence to the contrary and petitioner, instead of squarely refuting this point, skirted the
issue by insisting that the mere presence of two contending factions in the IBM prevents the
issuance of a valid and authentic charter certificate in favor of IBM at SMFI. This averment of
petitioner simply does not deserve any merit.
II
In any case, this Court notes that it is petitioner, the employer, which has offered the most
tenacious resistance to the holding of a certification election among its monthly-paid rank-and-file
employees. This must not be so, for the choice of a collective bargaining agent is the sole concern of
the employees.[19] The only exception to this rule is where the employer has to file the petition for
certification election pursuant to Article 258[20] of the Labor Code because it was requested to
bargain collectively,[21] which exception finds no application in the case before us. Its role in a
certification election has aptly been described in Trade Unions of the Philippines and Allied Services
(TUPAS) v. Trajano,[22] as that of a mere by-stander. It has no legal standing in a certification
election as it cannot oppose the petition or appeal the Med-Arbiters orders related thereto. An
employer that involves itself in a certification election lends suspicion to the fact that it wants to
create a company union.[23] This Court should be the last agency to lend support to such an attempt
at interference with a purely internal affair of labor.[24]
While employers may rightfully be notified or informed of petitions of such nature, they should
not, however, be considered parties thereto with the concomitant right to oppose it. Sound policy
dictates that they should maintain a strictly hands-off policy.[25]
It bears stressing that no obstacle must be placed to the holding of certification elections,[26] for
it is a statutory policy that should not be circumvented.[27] The certification election is the most
democratic and expeditious method by which the laborers can freely determine the union that shall
act as their representative in their dealings with the establishment where they are working.[28] It is the
appropriate means whereby controversies and disputes on representation may be laid to rest, by the
unequivocal vote of the employees themselves.[29] Indeed, it is the keystone of industrial
democracy.[30]
III
Petitioner next asseverates that the Charter Certificate submitted by the private respondent was
defective in that it was not certified under oath and attested to by the organizations secretary and
President.
Petitioner is grasping at straws. Under our ruling in the Progressive Development
Corporation[31] case, what is required to be certified under oath by the secretary or treasurer and
attested to by the locals president are the constitution and by-laws, a statement on the set of officers,
and the books of accounts of the organization. The charter certificate issued by the mother union
need not be certified under oath by the secretary or treasurer and attested to by the locals president.
IV
Petitioner, in its Reply to public respondents Comment, nevertheless calls the attention of this
court to the fact that, contrary to the assertion of private respondent IBM that it is a legitimate labor
federation and therefore has the capacity and authority to create a local or chapter at SMFI, the
Chief of the Labor Organizations Division of the Bureau of Labor Relations Manila had allegedly
issued a certification last January 17, 1995 to the effect that private respondent is not a legitimate
labor federation.[32]
This is a factual issue which petitioner should have raised before the Med-Arbiter so as to allow
the private respondent ample opportunity to present evidence to the contrary. This Court is definitely
not the proper venue to consider this matter for it is not a trier of facts. It is noteworthy that petitioner
did not challenge the legal personality of the federation in the proceedings before the Med-
Arbiter. Nor was this issue raised in petitioners appeal to the Office of the Secretary of Labor and
Employment. This matter is being raised for the first time in this petition. An issue which was neither
alleged in the pleadings nor raised during the proceedings below cannot be ventilated for the first
time before this Court. It would be offensive to the basic rule of fair play, justice and due
process.[33] Certiorari is a remedy narrow in its scope and inflexible in character. It is not a general
utility tool in the legal workshop.[34] Factual issues are not a proper subject for certiorari, as the
power of the Supreme Court to review labor cases is limited to the issue of jurisdiction and grave
abuse of discretion.[35] It is simply unthinkable for the public respondent Undersecretary of Labor to
have committed grave abuse of discretion in this regard when the issue as to the legal personality of
the private respondent IBM Federation was never interposed in the appeal before said forum.
V
Finally, the certification election sought to be stopped by petitioner is, as of now, fait
accompli. The monthly paid rank-and-file employees of SMFI have already articulated their choice as
to who their collective bargaining agent should be. In the certification election held on August 20,
1994,[36] the SMFI workers chose IBM at SMFI to be their sole and exclusive bargaining agent. This
democratic decision deserves utmost respect. Again, it bears stressing that labor legislation seeks in
the main to protect the interest of the members of the working class. It should never be used to
subvert their will.[37]
WHEREFORE, the petition is DENIED. Costs against petitioner.
SO ORDERED.
Bellosillo, Vitug, and Kapunan, JJ., concur.
Padilla (Chairman), J., no part, on account of interests in San Miguel Group of companies.
11. MINETTE BAPTISTA, BANNIE EDSEL SAN MIGUEL, and MA. FEDAYON, Petitioners,
vs.
ROSARIO VILLANUEVA, JANETTE ROLDAN, DANILO OLAYVAR, ONOFRE ESTRELLA,
CATALINO LEDDA, MANOLO GUBANGCO, GILBERT ORIBIANA, CONSTANCIO SANTIAGO,
RUTH BAYQUEN, RUBY CASTANEDA, ALFRED LANDAS, JR., ROSELYN GARCES, EUGENE
CRUZ, MENANDRO SAMSON, FEDERICO MUNOZ and SALVADOR DIWA, Respondents.
DECISION
MENDOZA, J.:
This Petition for Review on Certiorari1 under Rule 45 of the 1997 Rules of Civil Procedure filed by
Minette Baptista, Bannie Edsel San Miguel and Ma. Fe Dayon (petitioners) assails the March 9,
2010 Decision2 and the December 1, 2010 Resolution3 of the Court of Appeals (CA) in CA-G.R. SP
No. 105027, which affirmed the March 31, 2008 Decision4 of the National Labor Relations
Commission (NLRC) dismissing the complaint for Unfair Labor Practice (ULP) filed against the
named respondents.
The Facts
Petitioners were former union members of Radio Philippines Network Employees Union (RPNEU), a
legitimate labor organization and the sole and exclusive bargaining agent of the rank and file
employees of Radio Philippines Network (RPN), a government-sequestered corporation involved in
commercial radio and television broadcasting affairs, while the respondents were the union’s elected
officers and members.
On April 26, 2005, on suspicion of union mismanagement, petitioners, together with some other
union members, filed a complaint for impeachment of their union president, Reynato Siozon, before
the executive board of RPN, which was eventually abandoned. They later re-lodged the
impeachment complaint, this time, against all the union officers and members of RPNEU before the
Department of Labor and Employment (DOLE). They likewise filed various petitions for audit
covering the period from 2000 to 2004.5
Thereafter, two (2) written complaints, dated May 26, 2005 and May 27, 2005, were filed against
petitioners and several others for alleged violation of the union’s Constitution and By-Laws.6 Months
later, on September 19, 2005, a different group of union members filed a third complaint against
petitioners and 12 others,7 before the Chairman of RPNEU’s Committee on Grievance and
Investigation (the Committee) citing as grounds the "commission of an act which violates RPNEU
Constitution and By-Laws, specifically, Article IX, Section 2.2 for joining or forming a union outside
the sixty (60) days period and Article IX, Section 2.5 for urging or advocating that a member start an
action in any court of justice or external investigative body against the Union or its officer without first
exhausting all internal remedies open to him or available in accordance with the CBL."8 These
complaints were, later on, consolidated.9
Thereafter, petitioners received a memorandum notice from Jeric Salinas, Chairman of the
Committee, requesting them to answer the complaint and attend a hearing scheduled on October 3,
2005.10 Petitioners and their group, through an exchange of communications with the Committee,
denied the charges imputed against them and contested the procedure adopted by the Committee in
its investigation. On November 9, 2005, the Committee submitted their recommendation of expulsion
from the union to RPNEU’s Board of Directors.11 On December 21, 2005, the RPNEU’s Board of
Directors affirmed the recommendation of expulsion of petitioners and the 12 others from union
membership in a Board Resolution No. 018-2005.12 Through a Memorandum,13 dated December 27,
2005, petitioners were served an expulsion notice from the union, which was set to take effect on
December 29, 2005. On January 2, 2006, petitioners with the 12 others wrote to RPNEU’s President
and Board of Directors that their expulsion from the union was an ultra vires act because the
Committee failed to observe the basic elements of due process because they were not given the
chance to physically confront and examine their complainants.14
In a letter, dated January 24, 2006, RPNEU’s officers informed their company of the expulsion of
petitioners and the 12 others from the union and requested the management to serve them notices
of termination from employment in compliance with their CBA’s union security clause.15 On February
17, 2006, RPN HRD Manager, Lourdes Angeles, informed petitioners and the 12 others of the
termination of their employment effective March 20, 2006, enforcing Article II, Section 216 also known
as the union security clause of their current CBA.17
Aggrieved, petitioners filed three (3) separate complaints for ULP against the respondents, which
were later consolidated,18 questioning legality of their expulsion from the union and their subsequent
termination from employment.
In a decision,19 dated April 30, 2007, the Labor Arbiter (LA) ruled in favor of the petitioners and
adjudged the respondents guilty of ULP pursuant to Article 249 (a) and (b) of the Labor Code. The
LA clarified that only the union officers of RPNEU could be held responsible for ULP, so they
exonerated six (6) of the original defendants who were mere union members. The LA also ordered
the reinstatement of petitioners as bonafide members of RPNEU. The decretal portion reads:
WHEREFORE, premises above considered, a decision is being issued declaring union officers Ruth
Bayquen, Ruby Castañeda, Alfred Landas, Roce Garces, Board of Directors Federico Muñoz,
Janette Roldan, Rosario Villanueva, Menandro Samson, Salvador Diwa and Eugene Cruz guilty of
unfair labor practice for violating Article 249, paragraph A and B of the Labor Code. Respondents
are also ordered to cease and desist from further committing unfair labor practice and order the
reinstatement of the complainants as bonafide members of the union.
The other claims are hereby denied for lack of factual and legal basis.
SO ORDERED.20
Undaunted, the respondents appealed the LA decision to the NLRC.
In its Decision,21 dated March 31, 2008, the NLRC vacated and set aside the LA decision and
dismissed the complaint for ULP for lack of merit. The NLRC found that petitioners filed a suit calling
for the impeachment of the officers and members of the Executive Board of RPNEU without first
resorting to internal remedies available under its own Constitution and By-Laws. The NLRC likewise
decreed that the LA’s order of reinstatement was improper because the legality of the membership
expulsion was not raised in the proceedings and, hence, beyond the jurisdiction of the LA.22 The fallo
of the NLRC decision reads:
WHEREFORE, the partial appeal filed by the respondents is GRANTED. The decision, dated 30
April 2007 is VACATED and SET ASIDE. The complaint is dismissed for lack of merit.
SO ORDERED.23
Petitioners filed for a motion for reconsideration, but the NLRC denied it in its Resolution,24 dated
May 30, 2008.
The CA, in its March 9, 2010 Decision, sustained the NLRC decision. The CA stated that the
termination of employment by virtue of a union security clause was recognized in our jurisdiction. It
explained that the said practice fortified the union and averted disunity in the bargaining unit within
the duration of the CBA. The CA declared that petitioners were accorded due process before they
were removed from office. In fact, petitioners were given the opportunity to explain their case and
they actually availed of said opportunity by submitting letters containing their arguments.25
Petitioners moved for reconsideration, but the CA likewise denied the same in its December 1, 2010
Resolution,26The CA expounded:
Anent petitioners’ charge of ULP against respondents, the records are barren of proof to sustain
such charge. What remains apparent is that petitioners were expelled from the union due to their
violation of Section 2.5 of Article IX of the CBL which punishes the act of "urging or advocating that a
member start an action in any court of justice or external investigative body against the Union or any
of its officer, without first exhausting all internal remedies open to him or available in accordance with
the Constitution and By-Laws of Union." As petitioners’ expulsion was pursuant to the union’s CBL,
We absolve respondents of the charges of ULP absent any substantial evidence to sustain it.
The importance of a union’s constitution and bylaws cannot be overemphasized. They embody a
covenant between a union and its members and constitute the fundamental law governing the
member’s rights and obligations. As such, the union’s constitution and bylaws should be upheld, as
long as they are not contrary to law, good morals or public policy. In Diamonon v. Department of
Labor and Employment, the High Court affirmed the validity and importance of the provision in the
CBL of exhaustion of administrative remedies, viz:
When the Constitution and by-laws of both unions dictated the remedy for intra-union dispute, such
as petitioner’s complaint against private respondents for unauthorized or illegal disbursement of
union funds, this should be resorted to before recourse can be made to the appropriate
administrative or judicial body, not only to give the grievance machinery or appeals’ body of the
union the opportunity to decide the matter by itself, but also to prevent unnecessary and premature
resort to administrative or judicial bodies. Thus, a party with an administrative remedy must not
merely initiate the prescribed administrative procedure to obtain relief, but also pursue it to its
appropriate conclusion before seeking judicial intervention.27
Thus, petitioners advance the following
GROUNDS/ARGUMENTS IN SUPPORT OF THE PETITION
1. WITH DUE RESPECT, THE HONORABLE COURT OF APPEALS MISERABLY FAILED
TO APPRECIATE THE REAL ISSUE IN THIS CASE.
2. WITH DUE RESPECT, THE DECISION AND RESOLUTION ARRIVED AT BY THE
HONORABLE COURT OF APPEALS ARE NOT IN ACCORD WITH LAW AND
APPLICABLE JURISPRUDENCE, THEREBY GRAVELY ABUSING ITS DISCRETION
AMOUNTING TO LACK OR IN EXCESS OF JURISDICTION.28
Petitioners submit that the respondents committed ULP under Article 289 (a) and (b) of the Labor
Code.29 They insist that they were denied substantive and procedural due process of law when they
were expelled from the RPNEU.
The petition is bereft of merit.
The primary concept of ULP is embodied in Article 247 of the Labor Code, which provides:
Article 247. Concept of unfair labor practice and procedure for prosecution thereof.––Unfair labor
practices violate the constitutional right of workers and employees to self-organization, are inimical to
the legitimate interests of both labor and management, including their right to bargain collectively
and otherwise deal with each other in an atmosphere of freedom and mutual respect, disrupt
industrial peace and hinder the promotion of healthy and stable labor-management relations.
In essence, ULP relates to the commission of acts that transgress the workers’ right to organize. As
specified in Articles 248 and 249 of the Labor Code, the prohibited acts must necessarily relate to
the workers' right to self-organization and to the observance of a CBA.30 Absent the said vital
elements, the acts complained, although seemingly unjust, would not constitute ULP.31
In the case at bench, petitioners claim that the respondents, as union officers, are guilty of ULP for
violating paragraphs (a) and (b) of Article 249 of the Labor Code, to wit:
ART. 249. UNFAIR LABOR PRACTICES OF LABOR ORGANIZATIONS.- It shall be unfair labor
practice for a labor organization, its officers, agents or representatives:
(a) To restrain or coerce employees in the exercise of their rights to self-organization.
However, a labor organization shall have the right to prescribe its own rules with respect to
the acquisition or retention of membership:
(b) To cause or attempt to cause an employer to discriminate against an employee, including
discrimination against an employee with respect to whom membership in such organization
has been denied or to terminate an employee on any ground other than the usual terms and
conditions under which membership or continuation of membership is made available to
other members;
Petitioners posit that the procedure that should have been followed by the respondents in resolving
the charges against them was Article XVII, Settlement of Internal Disputes of their Constitution and
By-Laws, specifically, Section 232 thereof, requiring members to put their grievance in writing to be
submitted to their union president, who shall strive to have the parties settle their differences
amicably. Petitioners maintain that any form of grievance would be referred only to the committee
upon failure of the parties to settle amicably.33
The Court is not persuaded.
Based on RPNEU’s Constitution and By-Laws, the charges against petitioners were not mere
internal squabbles, but violations that demand proper investigation because, if proven, would
constitute grounds for their expulsion from the union. As such, Article X, Investigation Procedures
and Appeal Process of RPNEU’s Constitution and By-Laws, which reads –
SECTION 1. Charge against any member or officer of the Union shall be submitted to the Board of
Directors (BOD) in writing, which shall refer the same, if necessary, to the committee on Grievance
and Investigation. The Committee shall hear any charge and subsequently, forward its finding and
recommendation to the BOD. The BOD has the power to approve or nullify the recommendation of
the Committee on Grievance and Investigation based on the merit of the appeal.
was correctly applied under the circumstances.
Besides, any supposed procedural flaw in the proceedings before the Committee was deemed cured
when petitioners were given the opportunity to be heard. Due process, as a constitutional precept, is
satisfied when a person was notified of the charge against him and was given an opportunity to
explain or defend himself. In administrative proceedings, the filing of charges and giving reasonable
opportunity for the person so charged to answer the accusations against him constitute the minimum
requirements of due process.34 The essence of due process is simply to be heard, or as applied to
administrative proceedings, an opportunity to explain one’s side, or an opportunity to seek a
reconsideration of the action or ruling complained of.35 It cannot be denied that petitioners were
properly notified of the charges filed against them and were equally afforded the opportunity to
present their side.
Next, petitioners point out that they were not given the opportunity to personally face and confront
their accusers, which were violative of their right to examine the complainants and the supposed
charges against them.36
Petitioners’ contention is without merit. Mere absence of a one-onone confrontation between the
petitioners and their complainants does not automatically affect the validity of the proceedings before
the Committee. Not all cases necessitate a trial-type hearing.37 As in this case, what is indispensable
is that a party be given the right to explain one’s side, which was adequately afforded to the
petitioners.
It is well-settled that workers’ and employers’ organizations shall have the right to draw up their
constitutions and rules to elect their representatives in full freedom, to organize their administration
and activities and to formulate their programs.38 In this case, RPNEU’s Constitution and By-Laws
expressly mandate that before a party is allowed to seek the intervention of the court, it is a pre-
condition that he should have availed of all the internal remedies within the organization. Petitioners
were found to have violated the provisions of the union’s Constitution and By-Laws when they filed
petitions for impeachment against their union officers and for audit before the DOLE without first
exhausting all internal remedies available within their organization. This act is a ground for expulsion
from union membership. Thus, petitioners’ expulsion from the union was not a deliberate attempt to
curtail or restrict their right to organize, but was triggered by the commission of an act, expressly
sanctioned by Section 2.5 of Article IX of the union’s Constitution and By-Laws.1âwphi1
For a charge of ULP against a labor organization to prosper, the onus probandi rests upon the party
alleging it to prove or substantiate such claims by the requisite quantum of evidence.39 In labor
cases, as in other administrative proceedings, substantial evidence or such relevant evidence as a
reasonable mind might accept as sufficient to support a conclusion is required.40 Moreover, it is
indubitable that all the prohibited acts constituting unfair labor practice should materially relate to the
workers' right to self-organization.41
Unfortunately, petitioners failed to discharge the burden required to prove the charge of ULP against
the respondents. Aside from their self-serving allegations, petitioners were not able to establish how
they were restrained or coerced by their union in a way that curtailed their right to self-organization.
The records likewise failed to sufficiently show that the respondents unduly persuaded management
into discriminating against petitioners. other than to bring to its attention their expulsion from the
union, which in turn, resulted in the implementation of their CBA' s union security clause. As earlier
stated, petitioners had the burden of adducing substantial evidence to support its allegations of
ULP,42 which burden they failed to discharge. In fact, both the NLRC and the CA found that
petitioners were unable to prove their charge of ULP against the respondents.
It is axiomatic that absent any clear showing of abuse, arbitrariness or capriciousness, the findings of
fact by the NLRC, especially when affirmed by the CA, as in this case, are binding and conclusive
upon the Court.43 Having found none, the Court finds no cogent reason to deviate from the
challenged decision.
WHEREFORE, the petition is DENIED. The March 9, 2010 Decision and the December 1, 2010
Resolution of the Court of Appeals in CA-G.R. SP No. 105027 are AFFIRMED.
SO ORDERED.
JOSE CATRAL MENDOZA
Associate Justice
16
All covered employees not otherwise disqualified herein shall become and remain members in
good standing of the UNION. Any employee whose membership in the UNION is terminated shall
likewise be deemed terminated from the COMPANY.
30Tunay na Pagkakaisa ng Manggagawa sa Asia Brewery v. Asia Brewery, Inc., G.R. No. 162025,
August 3, 2010, 626 SCRA 376, 388.
31
General Santos Coca-Cola Plant Free Workers Union-Tupas v. Coca-Cola Bottlers Phils., Inc.
(General Santos City), G.R. No. 178647, February 13, 2009, 579 SCRA 414, 419, citing Philcom
Employees Union v. Philippine Global Communication, 527 Phil. 540, 557 (2006).
32
SECTION 2. Any grievance shall be made in writing and submitted to the President three (3) days
from the day the incident happened who shall the[n] call the members involved and shall undertake
to have the parties settle their differences amicably.
33
SECTION 3. In the event of failure to settle the grievance amicably, the President shall refer the
matter to the Grievance Committee, which shall investigate the grievance, observing procedural due
process in the investigation.
34
Cayago v. Lina, 489 Phil. 735, 750-751 (2005).
35
Libres v. NLRC, 367 Phil. 181, 190 (1999).
36
Rollo, p. 490.
37
Mariveles Shipyard Corp. v. Court of Appeals, 461 Phil. 249, 265 (2003); Columbus Philippines
Bus Corp. v. National Labor Relations Commission, 417 Phil. 81, 98 (2001).
38 Article 3, ILO Convention No. 87.
39UST Faculty Union v. University oj'5)a111o Tomas. G.R. No. 180892. April 7. 2009, 584 SCRA
648, 662.
40
Standard Chartered Bank Employees Union (NUBE) v. Confesor, 4 76 Phil. 346, 36 7 (2004 ).
41
Great Pacific Life Employees Union v. Great Pacific Life Assurance Corporation. 362 Phil. 452,
464 (1999).
42
Tiu v. National Labor Relations Commission, 343 Phil. 478, 485 (1997).
43
Acevedo v. Advanstar Company, Inc. 511 Phil. 279.287 (2005)