MERALCO v.

Secretary of Labor and Employment

J. Medialdea
G.R. No. 91902
TOPIC: Supervisors; Security Guards; On March 2, 1989, the Congress passed the actual RA 6715
(not the IRR), Sec. 18 of which amended Art. 245, stating that only supervisory employees are prohibited
from membership in labor organizations and bargaining units of the rank-and-file. Art. 245 does not
prohibit security guards and personnel from joining such organizations.
FACTS: The Staff and Technical Employees of Meralco (STEAM) filed a petition for certification of
election, seeking to represent non-managerial employees with pay grades VII and above, non-managerial
employees in the security and patrol division, and employees within the rank-and-file who are
disqualified from becoming union members of any organization within the same bargaining unit, since the
Meralco Employees and Workers Association (MEWA) represents employees from pay grade I-VI.
Meralco sought to dismiss since managerial employees are prohibited by law from forming or joining
supervisory unions and since security guards cannot join the rank-and-file, among others.
Med-Arbiter: Managerial employees cannot form, join, or assist a labor organization or the rank and file;
those in Patrol and Security are tasked with providing security in the company and are not eligible to join
the rank-and-bargaining unit pursuant to Sec. 2(c), Rule V, Book V of the IRR of the LC (1988).
With the enactment of RA 6715 and its IRR, the STEAM renounced its representation of the employees in
the patrol and security division, as said employees were excluded from being able to join unions, along
with supervisory employees, with the passage of RA 6715. The Med-Arbiter, in its Resolution, provided
that non-managerial employees of the Security and Patrol Division are considered among the rank-andfile and granted the petition for certification of election, to the exclusion of supervisory employees.
ISSUE: Whether or not the security guards or personnel may be lumped together with the rank-and-file
union and/or the supervisory union (YES as to rank-and-file)
RESOLUTION: Petition DISMISSED
A. Right of security guards to self-organize;
Applicable law before was the IRR of RA
6715, with two provisions prohibiting
supervisory employees and security guards
from joining labor organizations and
bargaining units of the rank-and-file.
On Dec. 24, 1986, Pres. Cory Aquino passed
EO No. 111 which eliminated the provision
with regard to security guards, effectively
amending Art. 245 of the Labor Code to
exclude only supervisory employees from
joining labor organizations
On March 2, 1989, the Congress passed the
actual RA 6715 (not the IRR), Sec. 18 of
which amended Art. 245, stating that only
supervisory employees are prohibited from
membership in labor organizations and
bargaining units of the rank-and-file. Art.

245 does not prohibit security guards and

personnel from joining such organizations.
B. Security guards right to organize;
possible consequences; RA 6715 is apt to
produce divided loyalties in the faithful
performance of their duties. Economic
reasons would present the employees
concerned with the temptation to
subordinate their duties to the allegiance
they owe to the union. In the event of a
strike, security personnel may neglect or
abandon their duties, such as protection of
the employer, the control of the premises,
the protection of property of the employer
and the persons of its officials and
employees. The Court just hopes that
corresponding amendatory and suppletory
laws from Congress will help avoid possible
conflict of interest in security personnel.