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FILOIL REFINERY CORPORATION, petitioner, Peace Act, "(I)ndividuals employed as supervisors

vs. shall not be eligible for membership in a labor


FILOIL SUPERVISORY & CONFIDENTIAL organization of employees under their supervision
EMPLOYEES ASSOCIATION AND COURT OF but may form separate organizations their own."1
INDUSTRIAL RELATIONS, respondents. It rejected petitioner's claim against respondent
Beltran, Lacson & Associates for petitioner. association's right to bargain collectively, holding
Lanting, Morabe Law Offices for private that such was expressly granted under section 24
respondent. of the Industrial Peace Act, and asserting that "if
Congress deemed it wise for supervisors not to
have the right to strike, then it should have been so
TEEHANKEE, J.:p expressly stated as in the case of government
The present appeal questions the right of employees. Section 11 of the Industrial Peace Act
supervisors and confidential employees to organize gives government employees the right to belong to
the respondent labor association and to bargain any labor organization provided no obligation to
collectively with their employer, petitioner strike or join a strike is imposed by such labor
corporation herein, as upheld by respondent court organization. The denial to government employees
of industrial relations in its appealed orders and of the right to strike is significant in the controversy
resolution. before this Court because it manifests to all that
Respondent association is a labor organization duly Congress in enacting Republic Act No. 875 was
registered with the Department of Labor. It is aware of the implications that when supervisors
composed exclusively of the supervisory and were given the right to organize themselves into a
confidential employees of petitioner corporation. labor organization, they have correlative right to
There exists another entirely distinct labor declare a strike. In the case of supervisors, they
association composed of the corporation's rank- were enfranchised by Congress to organize
and-file employees, the Filoil Employees & Workers themselves into a labor organization and were
Association (FEWA) with which petitioner executed denied the right to strike. This means that the right
a collective bargaining agreement. This collective to strike was not denied them since no special
bargaining agreement expressly excluded from its reason obtains among the supervisors as it does
coverage petitioner's supervisory and confidential obtain among government employees."2
employees, who in turn organized their own labor The industrial court likewise dismissed petitioner's
association, respondent herein. objection against the composition of respondent
Respondent association filed on February 18, 1965 association in that it included as members technical
with the industrial court its petition for certification men and confidential employees in this wise: "(A)t
as the sole and exclusive collective bargaining this point, it may be stressed that supervisors as a
agent of all of petitioner's supervisory and general rule should form an association of their
confidential employees working at its refinery in own and should exclude all other types of
Rosario, Cavite. personnel unless a special consideration exists, like
Petitioner corporation filed a motion to dismiss the example, that they are so few in number and that
petition on the grounds of lack of cause of action there are other technical men or confidential men
and of respondent court's lack of jurisdiction over equally few in number. In the latter case, the
the subject-matter, under its claim that supervisors supervisors, technical men and confidential
are not employees within the meaning of Republic employees may be constituted into one unit."3
Act 875, the Industrial Peace Act, and that since Petitioner's motion for reconsideration of said
they are part of management, they do not have the order of May 26, 1965 was denied by respondent
right to bargain collectively although they may court en banc per its resolution dated September 7,
organize an organization of their own. 1965 which affirmed the said order. No appeal
Respondent court in its order of May 26, 1965 having been taken from the resolution, the petition
denied the dismissal motion. It ruled that under the was accordingly set for hearing and the parties
express provisions of section 3 of the Industrial submitted their stipulation of facts, stipulating inter
aliathat respondent association "has forty-seven try once more to show why such inclusion. It is
(47) members among the supervisory, technical admitted by the company that confidential
men and confidential employees of the company" employees are outside the coverage of the existing
and that "all the forty seven (47) members of the collective bargaining agreement between the
(respondent association) are being checked-off by respondent company and the rank and file union
the company for union dues pursuant to the (FEWA) by specific agreement. Since the
individual check-off authorization submitted to the confidential employees are very few and are, by
company." practice and tradition, identified with
The parties could not agree, however, on the management, the NLRB, because of such "identity
composition of the appropriate bargaining unit of interest" (Wilson & Co., 68 NLRB 84), has
with petitioner corporation proposing that the 47 allowed their inclusion in the bargaining unit of
members of respondent association should be supervisors who are likewise identified with
broken up into five (5) separate collective management. This Court, a counterpart of the
bargaining units, viz, the supervisors should form a NLRB, for same reason, should also allow the
distinct unit separate from the rest of the inclusion of the confedential employees in the
personnel who in turn would be divided into bargaining unit of supervisor except of course
separate and independent units or confidential Marcelo Bernardo who, pursuant to Order of May
employees, professional personnel, "fringe" 26, 1965, as affirmed by the Court en banc, should
employees consisting of five firemen, and twelve be excluded because he handles personnel matters
(12) office and clerical employees. for the employer."5
Evidence was received by respondent court and it Respondent court pointed out that "in fact, out of
was satisfied that executive personnel handling forty-three (43), excluding the twelve (12)
personnel matters for the employer were duly executive personnel under Groups I and II, the
excluded from respondent association. Thus, per company proposes five (5) bargaining units or eight
respondent court's order of July 23, 1966, it is (8) employees per unit. This Court will be creating
noted that "not one of the employees listed under fragmentary units which would not serve the
Groups I and II including (their supervisor) interest of industrial peace, much less in an industry
Leonardo R. Santos under Group III, is a member of indispensable to the national interest like the one
(respondent association)", since "(I)t appears that at bar, as is now obtaining in the Philippine
the personnel listed under Groups I and Group II ... National Railways, also an industry indispensable
are in the category of executives who have to the national interest (Union de Maquinistas,
supervision over the supervisors who are members Fogoneros y Motormen vs. Philippine National
of (respondent association) and that Marcelo Railways, Case No. 67-IPA), with thirteen (13)
Bernardo handles personnel matters of the unions, if it breaks up the petitioner union into five
employer ... All of them should, therefore, be (5) bargaining units. The Court is likewise aware of
excluded from the appropriate bargaining unit.4 the ineffectiveness of a small union with a scanty
Respondent court in its said order of July 23, 1966 members as bargaining unit. The breaking up of
consequently cast aside petitioner's sedulous bargaining agents into tiny units will greatly impair
objections against the inclusion of the confidential their organizational value. It has always been the
employees in the supervisors respondent policy of the United States National Labor Relations
association, thus: "(F)rom the memorandum and Board that, in deciding upon whether to include or
manifestation of the company, a persistent assault exclude a group of employees from a bargaining
against the inclusion of the confidential emloyees unit, the Board has always allowed itself to be
with supervisors under one bargaining unit would guided by the determination as to whether its
seem to be evident. Although this inclusion has action "will insure to the employees of the
already been raised in the motion to dismiss filed Company the full benefit of their right to self-
by the company and has already been resolved by organization and to collective bargaining and
the Court en banc, with no appeal to the Supreme otherwise effectuate the policies of the Act" (20
Court having been taken by the company, we shall NLRB 705). We see no reason why this Tribunal
whose basic functions are the same as that of the in the Taft-Hartley Act" must be deemed an
NLRB, should do less or otherwise depart from this expression of its intention "to follow the
sound policy."6 intendment of said Act."
Since respondent association "clearly represents Petitioner's contentions are untenable, prescinding
the majority of the employees in the appropriate from the fact of its failure to appeal in due course
bargaining unit," respondent court therefore respondent court's en banc resolution of
certified it as the sole and exclusive bargaining September 7, 1965 upholding the right of the
agent for all the employees in the unit. supervisors and confidential employees to organize
Respondent court per its resolution en banc dated respondent association and to compel petitioner to
September 15, 1966 dismissed petitioner's motion negotiate and bargain collectively with it.
for reconsideration, holding that "as to the Petitioner's argument that since supervisors form
question of the right of supervisors and part of management, to allow them to bargain
confidential employees to compel their employer collectively would be tantamount to management
to bargain collectively, this has already been bargaining with itself may be a well-turned phrase
passed upon by the Trial Court in its Order dated but ignores the dual status of a supervisor as a
May 26, 1965 which Order was affirmed by the representative of management and as an
Court en banc in a resolution dated September 7, employee.
1965. The Company did not appeal this resolution If indeed the supervisor is absolutely
to the Supreme Court. Hence, this matter, as far as undistinguishable from management, then he
we are concerned, has already been resolved. We would be beyond removal or dismissal, for as
find it, therefore, unnecessary to pass upon the respondent association counters, "how can
same again," and that it found no sufficient management remove or dismiss itself?"
justification to alter or modify the trial court's As stated for the Court by the now Chief Justice
order upholding the appropriateness of the in AG & P Co. of Manila, Inc. vs. C.I.R.,8 section 3 of
bargaining unit. On this latter point, Judge the Industrial Peace Act "explicitly provides that
Salvador, while concurring with the supervisors' "employees" and this term includes supervisors
right of self-organization and collective bargaining, "shall have the right to self-organization, and to
cast a dissenting vote on the ground that the form, join or assist labor organizations of their own
Industrial Peace Act did not contemplate nor choosing for the purpose of collective bargaining
provide for supervisors and confidential employees through representations of their own choosing and
to be under one bargaining unit and as to to engage in concerted activities for the purpose of
"executive personnel" who have supervision over collective bargaining and other mutual aid or
the supervisors being excluded from any protection" and that "individuals employed as
representation, urged that "another supervisors' supervisors ... may form separate organizations of
unit must be created for these executive their own". Indeed, it is well settled that "in
personnel." The second point is not in contention relation to his employer," a foreman or supervisor
at bar since the "executive personnel" concerned "is an employee within the meaning of the Act" ...
have not appealed their exclusion. For this reason, supervisors are entitled to engage
In this appeal, petitioner pursues anew its in union activities and any discrimination against
contention that supervisors form part of them by reason thereof constitutes an unfair labor
management and are not considered as employees practice."
entitled to bargain collectively, arguing that "as Petitioner's arguments go in reality to the wisdom
supervisors form part and parcel of management, it and policy of the Industrial Peace Act which
is absurd for management to bargain collectively expressly grants supervisors the right to organize
with itself." Petitioner further argues that under and bargain collectively, which are beyond the
the American concept, supervisors are not Court's power of review. Thus, the argument that
considered employees and that since our Congress "it is axiomatic in the law of self-interest that an
copied verbatim the Taft-Hartley Act's definition of employer must give a "better deal" to those who
supervisor,7 its act of "incorporating the definition act in his interest and in whom he has trust and
confidence. These are the supervisors and inclusion of the confidential employees in the
confidential employees"9 and that "In the United supervisors' association for as admitted by
States there was a move to have a part of the petitioner itself, supra, the supervisors and
supervisory group to be aligned with labor. But the confidential emplyees enjoy its trust and
enactment of the Taft-Hartley Act put an end to confidence. Thisidentity of interest logically calls
this move." 10 for their inclusion in the same bargaining unit and
So with petitioner's thesis that "(T)o then give at the same time fulfills the law's objective of
supervisors the right to compel employers to insuring to them the full benefit of their right to
bargain would in effect align labor and self-organization and to collective bargaining,
management together against stockholders and which could hardly be accomplished if the
bondholders (capital) and inexorably tilt the respondent association's membership were to be
balance of power in favor of these hitherto broken up into five separate ineffective tiny units,
confliction forces. This is contrary to the nature and as urged by petitioner.
philosophy of free enterprise." 11 This further Respondent court's action not being vulnerable to
serves to point up the validity and rationale of the challenge as being arbitrary or capricious is
Industrial Peace Act's provision, since the therefore sustained, in line with the Court's
supervisors and confidential employees, even consistent rulings that the industrial court "enjoys
though they may exercise the prerogatives of a wide discretion in determining the procedure
management as regards the rank and file necessary to insure the fair and free choice of
employees are indeed employees in relation to bargaining representations by employees," and
their employer, the company which is owned by that its action "in deciding upon an appropriate
the "stockholders and bondholders (capital)" in unit for collective bargaining purposes is
petitioner's own words, and should therefore be discretionary ... and (that) its judgment in this
entitled under the law to bargain collectively with respect is entitled to almost complete finality,
the top management with respect to their terms unless its action is arbitrary or capricious" 12 and
and conditions of employment. that absent any grave abuse of discretion as to
Petitioner's argument that the express provisions justify the Court's intervention, "this Court has
of section 3 of our Industrial Peace Act must give repeatedly upheld the exercise of the Court of
way to the intendment of the Taft-Hartley Act Industrial Relations in matters concerning the
which exempts employers from the legal obligation representation of employee groups." 13
to recognize and negotiate with supervisors is ACCORDINGLY, the orders and resolution appealed
tenuous and groundless. The language of our own from are hereby affirmed and the petition at bar is
statute is plain and unambiguous and admits of no dismissed. No pronouncement as to costs.
other interpretation.
The other principal ground of petitioner's appeal SAN MIGUEL CORPORATION, petitioner,
questioning the confidential employees' inclusion vs.
in the supevisors bargaining unit is equally THE HONORABLE BIENVENIDO E. LAGUESMA and
untenable. Respondent court correctly held that NORTH LUZON MAGNOLIA SALES LABOR UNION-
since the confidential employee are very few in INDEPENDENT, respondents.
number and are by practice and tradition identified Siguion Reyna, Montecillo & Ongsiako for
with the supervisors in their role as representives petitioner.
of management vis-a-vis the rank and file E.N.A. Cruz & Associates for private respondent.
employee such identity of interest has allowed
their inclusion in the bargaining unit of supervisors-
managers for purposes of collective bargaining in PUNO, J.:
turn as employees in relation to the company as Petitioner San Miguel Corporation (SMC) prays that
their employer. the Resolution dated March 19, 1991 and the
No arbitrariness or grave abuse of discretion can be Order dated April 12, 1991 of public respondent
attributed against respondent court's allowing the Undersecretary Bienvenido E. Laguesma declaring
respondent union as the sole and exclusive ABUSE OF DISCRETION WHEN HE
bargaining agent of all the Magnolia sales IGNORED AND TOTALLY
personnel in northern Luzon be set aside for having DISREGARDED PETITIONER'S VALID
been issued in excess of jurisdiction and/or with AND JUSTIFIABLE GROUNDS WHY
grave abuse of discretion. THE ERROR MADE IN GOOD FAITH
On June 4, 1990, the North Luzon Magnolia Sales BY PETITIONER'S COUNSEL BE
Labor Union (respondent union for brevity) filed CORRECTED, AND INSTEAD RULED:
with the Department of Labor a petition for A
certification election among all the regular sales THAT PRIVATE RESPONDENT IS "THE SOLE AND
personnel of Magnolia Dairy Products in the North EXCLUSIVE BARGAINING AGENT FOR ALL THE
Luzon Sales Area. 1 REGULAR SALES OFFICES OF MAGNOLIA DAIRY
Petitioner opposed the petition and questioned the PRODUCTS, NORTH LUZON SALES AREA",
appropriateness of the bargaining unit sought to be COMPLETELY IGNORING THE ESTABLISHED
represented by respondent union. It claimed that BARGAINING HISTORY OF PETITIONER SMC.
its bargaining history in its sales offices, plants and B
warehouses is to have a separate bargaining unit THAT PETITIONER IS ESTOPPED FROM
for each sales office. QUESTIONING THE "AGREEMENT" ENTERED INTO
The petition was heard on November 9, 1990 with AT THE HEARING ON
petitioner 9 NOVEMBER 1990, IN CONTRAVENTION OF THE
being represented by Atty. Alvin C. Batalla of the ESTABLISHED FACTS OF THE CASE AND THE
Siguion Reyna law office. Atty. Batalla withdrew APPLICABLE LAW ON THE MATTER.
petitioner's opposition to a certification election We find no merit in the petition.
and agreed to consider all the sales offices in The issues for resolution are: (1) whether or not
northern Luzon as one bargaining unit. At the pre- respondent union represents an appropriate
election conference, the parties agreed inter alia, bargaining unit, and (2) whether or not petitioner is
on the date, time and place of the consent bound by its lawyer's act of agreeing to consider
election. Respondent union won the election held the sales personnel in the north Luzon sales area as
on November 24, 1990. In an Order dated one bargaining unit.
December 3, 1990, 2 Mediator-Arbiter Benalfre J. Petitioner claims that in issuing the impugned
Galang certified respondent union as the sole and Orders, public respondent disregarded its collective
exclusive bargaining agent for all the regular sales bargaining history which is to have a separate
personnel in all the sales offices of Magnolia Dairy bargaining unit for each sales office. It insists that
Products in the North Luzon Sales Area. its prior collective bargaining history is the most
Petitioner appealed to the Secretary of Labor. It persuasive criterion in determining the
claimed that appropriateness of the collective bargaining unit.
Atty. Batalla was only authorized to agree to the There is no merit in the contention.
holding of certification elections subject to the A bargaining unit is a "group of employees of a
following conditions: (1) there would only be one given employer, comprised of all or less than all of
general election; (2) in this general election, the the entire body of employees, consistent with
individual sales offices shall still comprise separate equity to the employer, indicate to be the best
bargaining units. 3 suited to serve the reciprocal rights and duties of
In a Resolution dated March 19, 1991, 4 public the parties under the collective bargaining
respondent, by authority of the Secretary of Labor, provisions of the law." 5
denied SMC's appeal and affirmed the Order of the The fundamental factors in determining the
Med- Arbiter. appropriate collective bargaining unit are: (1) the
Hence this petition for certiorari. will of the employees (Globe Doctrine); 6 (2) affinity
Petitioner claims that: and unity of the employees' interest, such as
THE HONORABLE UNDERSECRETARY substantial similarity of work and duties, or
LAGUESMA ACTED WITH GRAVE similarity of compensation and working conditions
(Substantial Mutual Interests Rule); (3) prior We are not persuaded. As discussed earlier, the
collective bargaining history; and (4) similarity of collective bargaining history of a company is not
employment status. 7 decisive of what should comprise the collective
Contrary to petitioner's assertion, this Court has bargaining unit. Insofar as the alleged "mistake" of
categorically ruled that the existence of a prior the substitute lawyer is concerned, we find that
collective bargaining history is neither decisive nor this mistake was the direct result of the negligence
conclusive in the determination of what constitutes of petitioner's lawyers. It will be noted that Atty.
an appropriate bargaining unit. 8 Ona was under the supervision of two (2) other
Indeed, the test of grouping is mutuality or lawyers, Attys. Jacinto de la Rosa, Jr. and George C.
commonality of interests. The employees sought to Nograles. There is nothing in the records to show
be represented by the collective bargaining agent that these two (2) counsels were likewise
must have substantial mutual interests in terms of unavailable at that time. Instead of deferring the
employment and working conditions as evinced by hearing, petitioner's counsels chose to proceed
the type of work they perform. therewith. Indeed, prudence dictates that, in such
In the case at bench, respondent union sought to case, the lawyers allegedly actively involved in
represent the sales personnel in the various SMC's labor case should have adequately and
Magnolia sales offices in northern Luzon. There is sufficiently briefed the substitute lawyer with
similarity of employment status for only the regular respect to the matters involved in the case and the
sales personnel in the north Luzon area are specific limits of his authority. Unfortunately, this
covered. They have the same duties and was not done in this case. The negligence of its
responsibilities and substantially similar lawyers binds petitioner. As held by this Court in
compensation and working conditions. The the case of Villa Rhecar Bus v. De la Cruz: 10
commonality of interest among he sales personnel . . . As a general rule, a client is
in the north Luzon sales area cannot be gainsaid. In bound by the mistakes of his
fact, in the certification election held on November counsel. Only when the application
24, 1990, the employees concerned accepted of the general rule would result
respondent union as their exclusive bargaining in serious injustice should an
agent. Clearly, they have expressed their desire to exception thereto be called for.
be one. In the case at bench, petitioner insists that each of
Petitioner cannot insist that each of the sales office the sales offices in northern Luzon should be
of Magnolia should constitute only one bargaining considered as a separate bargaining unit for
unit. What greatly militates against this position is negotiations would be more expeditious. Petitioner
the meager number of sales personnel in each of obviously chooses to follow the path of least
the Magnolia sales office in northern Luzon. Even resistance. It is not, however, the convenience of
the bargaining unit sought to be represented by the employer that constitutes the determinative
respondent union in the entire north Luzon sales factor in forming an appropriate bargaining unit.
area consists only of approximately Equally, if not more important, is the interest of the
9
fifty-five (55) employees. Surely, it would not be employees. In choosing and crafting an appropriate
for the best interest of these employees if they bargaining unit, extreme care should be taken to
would further be fractionalized. The adage "there is prevent an employer from having any undue
strength in number" is the very rationale advantage over the employees' bargaining
underlying the formation of a labor union. representative. Our workers are weak enough and
Anent the second issue, petitioner claims that Atty. it is not our social policy to further debilitate their
Batalla was merely a substitute lawyer for Atty. bargaining representative.
Christine Ona, who got stranded in Legaspi City. In sum, we find that no arbitrariness or grave abuse
Atty. Batalla was allegedly unfamiliar with the of discretion can be attributed to public
collective bargaining history of its establishment. respondents certification of respondent union as
Petitioner claims it should not be bound by the the sole and exclusive bargaining agent of all the
mistake committed by its substitute lawyer.
regular Magnolia sales personnel of the north unite all UP rank-and-file employees in one union,
Luzon sales area. it declared its assent to the holding of the election
WHEREFORE, premises considered, the challenged provided the appropriate organizational unit was
Resolution and Order of public respondent are first clearly defined. It observed in this connection
hereby AFFIRMED in toto, there being no showing that the Research, Extension and Professional Staff
of grave abuse of discretion or lack of jurisdiction. (REPS), who are academic non-teaching personnel,
SO ORDERED. should not be deemed part of the organizational
UNIVERSITY OF THE PHILIPPINES, petitioner, unit.
vs. For its part, the University, through its General
HON. PURA FERRER-CALLEJA, Director of the Counsel, 6 made of record its view that there
Bureau of Labor Relations, Department of Labor should be two (2) unions: one for academic, the
and Employment, and THE ALL U.P. WORKERS' other for non-academic or administrative,
UNION, represented by its President, Rosario del personnel considering the dichotomy of interests,
Rosario, respondent. conditions and rules governing these employee
groups.
NARVASA, C.J.: Director Calleja ruled on the matter on August 7,
In this special civil action of certiorari the University 1990. 7 She declared that "the appropriate
of the Philippines seeks the nullification of the organizational unit . . should embrace all the
Order dated October 30, 1990 of Director Pura regular rank-and-file employees, teaching and non-
Ferrer-Calleja of the Bureau of Labor Relations teaching, of the University of the Philippines,
holding that "professors, associate professors and including all its branches" and that there was no
assistant professors (of the University of the sufficient evidence "to justify the grouping of the
Philippines) are . . rank-and-file employees . . ;" non-academic or administrative personnel into an
consequently, they should, together with the so- organization unit apart and distinct from that of
called non-academic, non-teaching, and all other the academic or teaching personnel." Director
employees of the University, be represented by Calleja adverted to Section 9 of Executive Order
only one labor organization. 1 The University is No. 180, viz.:
joined in this undertaking by the Solicitor General Sec. 9. The appropriate
who "has taken a position not contrary to that of organizational unit shall be the
petitioner and, in fact, has manifested . . that he is employer unit consisting of rank-
not opposing the petition . . ." 2 and-file employees, unless
The case 3 was initiated in the Bureau of Labor circumstances otherwise require.
Relations by a petition filed on March 2, 1990 by a and Section 1, Rule IV of the Rules
registered labor union, the "Organization of Non- Implementing said EO 180 (as amended by
Academic Personnel of UP" (ONAPUP). 4 Claiming SEC. 2, Resolution of Public Sector Labor
to have a membership of 3,236 members Management Council dated May 14,
comprising more than 33% of the 9,617 persons 1989, viz.:
constituting the non-academic personnel of UP- xxx xxx xxx
Diliman, Los Baos, Manila, and Visayas, it sought For purposes of registration, an
the holding of a certification election among all appropriate organizational unit may
said non-academic employees of the University of refer to:
the Philippines. At a conference thereafter held on xxx xxx xxx
March 22, 1990 in the Bureau, the University d. State universities or colleges,
stated that it had no objection to the election. government-owned or controlled
On April 18, 1990, another registered labor union, corporations with original charters.
the "All UP Workers' Union," 5 filed a comment, as She went on to say that the general intent
intervenor in the certification election proceeding. of EO 180 was "not to fragmentize the
Alleging that its membership covers both academic employer unit, as "can be gleaned from the
and non-academic personnel, and that it aims to
definition of the term "accredited also a dichotomy between various levels of the
employees' organization," which refers to: teaching or academic staff;
. . a registered organization of the 3) Among the non-teaching employees composed
rank-and-file employees as defined of Administrative Staff and Research personnel,
in these rules recognized to only those holding positions below Grade 18
negotiate for the employees in an should be regarded as rank-and-file, considering
organizational unit headed by an that those holding higher grade positions, like
officer with sufficient authority to Chiefs of Sections, perform supervisory functions
bind the agency, such as . . . . . . including that of effectively recommending
state colleges and universities. termination of appointments or initiating
The Director thus commanded that a certification appointments and promotions; and
election be "conducted among rank-and-file 4) Not all teaching personnel may be deemed
employees, teaching and non-teaching" in all four included in the term, "rank-and-file;" only those
autonomous campuses of the UP, and that holding appointments at the instructor level may
management appear and bring copies of the be so considered, because those holding
corresponding payrolls for January, June, and July, appointments from Assistant Professor to
1990 at the "usual pre-election conference . . ." Associate Professor to full Professor take part, as
At the pre-election conference held on March 22, members of the University Council, a policy-making
1990 at the Labor Organizational Division of the body, in the initiation of policies and rules with
DOLE, 8 the University sought further clarification respect to faculty tenure and promotion. 9
of the coverage of the term, "rank-and-file" The ONAPUP quite categorically made of record its
personnel, asserting that not every employee could position; that it was not opposing the University's
properly be embraced within both teaching and proferred classification of rank-and file employees.
non-teaching categories since there are those On the other hand, the "All UP Workers' Union"
whose positions are in truth managerial and policy- opposed the University's view, in a Position Paper
determining, and hence, excluded by law. presented by it under date of October 18, 1990.
At a subsequent hearing (on October 4, 1990), the Director Calleja subsequently promulgated an
University filed a Manifestation seeking the Order dated October 30, 1990, resolving the "sole
exclusion from the organizational unit of those issue" of "whether or not professors, associate
employees holding supervisory positions among professors and assistant professors are included in
non-academic personnel, and those in teaching the definition of high-level employee(s)" in light of
staff with the rank of Assistant Professor or higher, Rule I, Section (1) of the Implementing Guidelines
submitting the following as grounds therefor: of Executive Order No. 180, defining "high level
1) Certain "high-level employees" with policy- employee" as follows:
making, managerial, or confidential functions, are 1. High Level Employee is one
ineligible to join rank-and-file employee whose functions are normally
organizations under Section 3, EO 180: considered policy determining,
Sec. 3. High-level employees whose managerial or one whose duties are
functions are normally considered as highly confidential in nature. A
policy-making or managerial or managerial function refers to the
whose duties are of a highly exercise of powers such as:
confidential nature shall not be 1. To effectively
eligible to join the organization of recommend such
rank-and file government managerial actions;
employees; 2. To formulate or
2) In the University hierarchy, not all teaching and execute management
non-teaching personnel belong the rank-and file: policies and
just as there are those occupying managerial decisions; or
positions within the non-teaching roster, there is
3. To hire, transfer, 3) Considering that the law regards as a "high level"
suspend, lay-off, employee, one who performs either policy-
recall, dismiss, assign determining, managerial, or confidential functions,
or discipline the Director erred in applying only the "managerial
employees. functions" test, ignoring the "policy-determining
The Director adjudged that said teachers are rank- functions" test.
and-file employees "qualified to join unions and 4) The Director's interpretation of the law would
vote in certification elections." According to her lead to absurd results, e.g.: "an administrative
A careful perusal of the University officer of the College of Law is a high level
Code . . shows that the policy- employee, while a full Professor who has published
making powers of the Council are several treatises and who has distinguished himself
limited to academic matters, in argument before the Supreme Court is a mere
namely, prescribing courses of study rank-and-file employee. A dormitory manager is
and rules of discipline, fixing student classified as a high level employee, while a full
admission and graduation Professor or Political Science with a Ph. D. and
requirements, recommending to the several Honorary doctorates is classified as rank-
Board of Regents the conferment of and-file." 10
degrees, and disciplinary power over The motion for reconsideration was denied by
students. The policy-determining Director Calleja, by Order dated November 20,
functions contemplated in the 1990.
definition of a high-level employee The University would now have this Court declare
pertain to managerial, executive, or void the Director's Order of October 30, 1990 as
organization policies, such as hiring, well as that of November 20, 1990. 11 A temporary
firing, and disciplining of employees, restraining order was issued by the Court, by
salaries, teaching/working hours, Resolution dated December 5, 1990 conformably
other monetary and non-monetary to the University's application therefor.
benefits, and other terms and Two issues arise from these undisputed facts. One
conditions of employment. They are is whether or not professors, associate professors
the usual issues in collective and assistant professors are "high-level employees"
bargaining negotiations so that "whose functions are normally considered policy
whoever wields these powers would determining, managerial or . . highly confidential in
be placed in a situation of conflicting nature." The other is whether or not, they, and
interests if he were allowed to join other employees performing academic
the union of rank-and-file functions, 12 should comprise a collective
employees. bargaining unit distinct and different from that
The University seasonably moved for consisting of the non-academic employees of the
reconsideration, seeking to make the following University, 13 considering the dichotomy of
points, to wit: interests, conditions and rules existing between
1) UP professors do "wield the most potent them.
managerial powers: the power to rule on tenure, As regards the first issue, the Court is satisfied that
on the creation of new programs and new jobs, it has been correctly resolved by the respondent
and conversely, the abolition of old programs and Director of Bureau Relations. In light of Executive
the attendant re-assignment of employees. Order No. 180 and its implementing rules, as well
2) To say that the Council is "limited to (acting on) as the University's charter and relevant regulations,
academic matters" is error, since academic the professors, associate professors and assistant
decisions "are the most important decisions made professors (hereafter simply referred to as
in a University . . (being, as it were) the heart, the professors) cannot be considered as exercising
core of the University as a workplace. such managerial or highly confidential functions as
would justify their being categorized as "high-level 3. Establish departmental priorities
employees" of the institution. in the allocation of available funds
The Academic Personnel Committees, through for promotion;
which the professors supposedly exercise 4. Act on cases of disagreement
managerial functions, were constituted "in order to between the Chairman and the
foster greater involvement of the faculty and other members of the DAPC particularly
academic personnel in appointments, promotions, on personnel matters covered by
and other personnel matters that directly affect this Order;
them." 14 Academic Personnel Committees at the 5. Act on complaints and/or protests
departmental and college levels were organized against personnel actions made by
"consistent with, and demonstrative of the very the Department Chairman and/or
idea of consulting the faculty and other academic the DAPC.
personnel on matters directly affecting them" and The University Academic Personnel Board, on the
to allow "flexibility in the determination of other hand, performs the following functions: 19
guidelines peculiar to a particular department or 1. Assist the Chancellor in the review
college." 15 of the recommendations of the
Personnel actions affecting the faculty and other CAPC'S.
academic personnel should, however, "be 2. Act on cases of disagreement
considered under uniform guidelines and between the Dean and the CAPC.
consistent with the Resolution of the Board (of 3. Formulate policies, rules, and
Regents) adopted during its 789th Meeting (11-26- standards with respect to the
69) creating the University Academic Personnel selection, compensation, and
Board." 16 Thus, the Departmental Academic promotion of members of the
Personnel Committee is given the function of academic staff.
"assist(ing) in the review of the recommendations 4. Assist the Chancellor in the review
initiated by the Department Chairman with regard of recommendations on academic
to recruitment, selection, performance evaluation, promotions and on other matters
tenure and staff development, in accordance with affecting faculty status and welfare.
the general guidelines formulated by the University From the foregoing, it is evident that it is the
Academic Personnel Board and the implementing University Academic Personnel Committee,
details laid down by the College Academic composed of deans, the assistant for academic
Personnel Committee;" 17 while the College affairs and the chief of personnel, which formulates
Academic Personnel Committee is entrusted with the policies, rules and standards respecting
the following functions: 18 selection, compensation and promotion of
1. Assist the Dean in setting up the members of the academic staff. The departmental
details for the implementation of and college academic personnel committees'
policies, rules, standards or general functions are purely recommendatory in nature,
guidelines as formulated by the subject to review and evaluation by the University
University Academic Personnel Academic Personnel Board. In Franklin Baker
Board; Company of the Philippines vs. Trajano, 20 this
2. Review the recommendation Court reiterated the principle laid down in National
submitted by the DAPCs with regard Merchandising Corp. vs. Court of Industrial
to recruitment, selection, Relations, 21 that the power to recommend, in
performance evaluation, tenure, order to qualify an employee as a supervisor or
staff development, and promotion managerial employee "must not only
of the faculty and other academic be effective but the exercise of such authority
personnel of the College; should not be merely of a routinary or clerical
nature but should require the use of independent
judgment." Where such recommendatory powers,
as in the case at bar, are subject to evaluation, Another factor that militates against petitioner's
review and final action by the department heads espousal of managerial employment status for all
and other higher executives of the company, the its professors through membership in the
same, although present, are not effective and not departmental and college academic personnel
an exercise of independent judgment as required committees is that not all professors are members
by law. thereof. Membership and the number of members
Significantly, the personnel actions that may be in the committees are provided as follows: 25
recommended by the departmental and college Sec. 2. Membership in Committees.
academic personnel committees must conform Membership in committees may
with the general guidelines drawn up by the be made either through
university personnel academic committee. This appointment, election, or by some
being the case, the members of the departmental other means as may be determined
and college academic personnel committees are by the faculty and other academic
not unlike the chiefs of divisions and sections of the personnel of a particular
National Waterworks and Sewerage Authority department or college.
whom this Court considered as rank-and-file Sec. 3. Number of Members. In
employees in National Waterworks & Sewerage addition to the Chairman, in the
Authority vs. NWSA Consolidated Unions, 22because case of a department, and the Dean
"given ready policies to execute and standard in the case of a college, there shall
practices to observe for their execution, . . . they be such number of members
have little freedom of action, as their main function representing the faculty and
is merely to carry out the company's orders, plans academic personnel as will afford a
and policies." fairly representative, deliberative
The power or prerogative pertaining to a high-level and manageable group that can
employee "to effectively recommend such handle evaluation of personnel
managerial actions, to formulate or execute actions.
management policies or decisions and/or to hire, Neither can membership in the University Council
transfer, suspend, lay-off, recall, dismiss, assign or elevate the professors to the status of high-level
discipline employees" 23 is exercised to a certain employees. Section 6 (f) and 9 of the UP Charter
degree by the university academic personnel respectively provide: 26
board/committees and ultimately by the Board of Sec. 6. The Board of Regents shall
Regents in accordance with Section 6 of the have the following powers and
University duties . . . ;
Charter, 24 thus: xxx xxx xxx
(e) To appoint, on the (f) To approve the courses of study
recommendation of the President of and rules of discipline drawn up by
the University, professors, the University Council as hereinafter
instructors, lecturers and other provided; . . .
employees of the University; to fix Sec. 9. There shall be a University
their compensation, hours of Council consisting of the President
service, and such other duties and of the University and of all
conditions as it may deem proper; to instructors in the university holding
grant them in its discretion leave of the rank of professor, associate
absence under such regulations as it professor, or assistant professor.
may promulgate, any other The Council shall have the power to
provision of law to the contrary prescribe the courses of study and
notwithstanding, and to remove rules of discipline, subject to the
them for cause after investigation approval of the Board of Regents. It
and hearing shall have been had. shall fix the requirements for
admission to any college of the governing the relationship between the University
university, as well as for graduation and its students, and not the University as an
and the receiving of a degree. The employer and the professors as employees. It is
Council alone shall have the power thus evident that no conflict of interest results in
to recommend students or others to the professors being members of the University
be recipients of degrees. Through its Council and being classified as rank-and-file
president or committees, it shall employees.
have disciplinary power over the Be that as it may, does it follow, as public
students within the limits prescribed respondent would propose, that all rank-and-file
by the rules of discipline approved by employees of the university are to be organized
the Board of Regents. The powers into a single collective bargaining unit?
and duties of the President of the A "bargaining unit" has been defined as a group of
University, in addition to those employees of a given employer, comprised of all or
specifically provided in this Act shall less than all of the entire body of employees, which
be those usually pertaining to the the collective interest of all the employees,
office of president of a university. consistent with equity to the employer, indicate to
It is readily apparent that the policy-determining be the best suited to serve the reciprocal rights and
functions of the University Council are subject to duties of the parties under the collective bargaining
review, evaluation and final approval by the Board provisions of the law. 28
of Regents. The Council's power of discipline is Our labor laws do not however provide the criteria
likewise circumscribed by the limits imposed by the for determining the proper collective bargaining
Board of Regents. What has been said about the unit. Section 12 of the old law, Republic Act No.
recommendatory powers of the departmental and 875 otherwise known as the Industrial Peace Act,
college academic personnel committees applies simply reads as follows: 29
with equal force to the alleged policy-determining Sec. 12. Exclusive Collective
functions of the University Council. Bargaining Representation for Labor
Even assuming arguendo that UP professors Organizations. The labor
discharge policy-determining functions through the organization designated or selected
University Council, still such exercise would not for the purpose of collective
qualify them as high-level employees within the bargaining by the majority of the
context of E.O. 180. As correctly observed by employees in an appropriate
private respondent, "Executive Order No. 180 is a collective bargaining unit shall be
law concerning public sector unionism. It must the exclusive representative of all
therefore be construed within that context. Within the employees in such unit for the
that context, the University of the Philippines purpose of collective bargaining in
represents the government as an employer. 'Policy- respect to rates of pay, wages, hours
determining' refers to policy-determination in of employment, or other conditions
university mattes that affect those same matters of employment; Provided, That any
that may be the subject of negotiation between individual employee or group of
public sector management and labor. The reason employees shall have the right at
why 'policy-determining' has been laid down as a any time to present grievances to
test in segregating rank-and-file from management their employer.
is to ensure that those who lay down policies in Although said Section 12 of the Industrial Peace Act
areas that are still negotiable in public sector was subsequently incorporated into the Labor
collective bargaining do not themselves become Code with minor changes, no guidelines were
part of those employees who seek to change these included in said Code for determination of an
policies for their collective welfare." 27 appropriate bargaining unit in a given case. 30 Thus,
The policy-determining functions of the University apart from the single descriptive word
Council refer to academic matters, i.e. those "appropriate," no specific guide for determining
the proper collective bargaining unit can be found An enlightening appraisal of the
in the statutes. problem of defining an appropriate
Even Executive Order No. 180 already adverted to bargaining unit is given in the 10th
is not much help. All it says, in its Section 9, is that Annual Report of the National Labor
"(t)he appropriate organizational unit shall be the Relations Board wherein it is
employer unit consisting of rank-and-file emphasized that the factors which
employees, unless circumstances otherwise said board may consider and weigh
require." Case law fortunately furnishes some in fixing appropriate units are: the
guidelines. history, extent and type of
When first confronted with the task of determining organization of employees; the
the proper collective bargaining unit in a particular history of their collective bargaining;
controversy, the Court had perforce to rely on the history, extent and type of
American jurisprudence. In Democratic Labor organization of employees in other
Association vs. Cebu Stevedoring Company, plants of the same employer, or
Inc., decided on February 28, 1958, 31 the Court other employers in the same
observed that "the issue of how to determine the industry; the skill, wages, work, and
proper collective bargaining unit and what unit working conditions of the
would be appropriate to be the collective employees; the desires of the
bargaining employees; the eligibility of the
agency" . . . "is novel in this jurisdiction; however, employees for membership in the
American precedents on the matter abound . . (to union or unions involved; and the
which resort may be had) considering that our relationship between the unit or
present Magna Carta has been patterned after the units proposed and the employer's
American law on the subject." Said the Court: organization, management, and
. . . Under these precedents, there operation. . . .
are various factors which must be . . In said report, it is likewise
satisfied and considered in emphasized that the basic test in
determining the proper constituency determining the appropriate
of a bargaining unit. No one bargaining unit is that a unit, to be
particular factor is itself decisive of appropriate, must affect a grouping
the determination. The weight of employees who have substantial,
accorded to any particular factor mutual interests in wages, hours,
varies in accordance with the working conditions and other
particular question or questions that subjects of collective bargaining
may arise in a given case. What are (citing Smith on Labor Laws, 316-
these factors? Rothenberg mentions 317; Francisco, Labor Laws, 162). . . .
a good number, but the most The Court further explained that "(t)he test of the
pertinent to our case are: (1) will of grouping is community or mutuality of interests.
the employees (Globe Doctrine); (2) And this is so because 'the basic test of an asserted
affinity and unit of employees' bargaining unit's acceptability is whether or not it is
interest, such as substantial fundamentally the combination which will best
similarity of work and duties, or assure to all employees the exercise of their
similarity of compensation and collective bargaining rights' (Rothenberg on Labor
working conditions; (3) prior Relations, 490)." Hence, in that case, the Court
collective bargaining history; and (4) upheld the trial court's conclusion that two
employment status, such as separate bargaining units should be formed, one
temporary, seasonal probationary consisting of regular and permanent employees
employees. . . . and another consisting of casual laborers or
xxx xxx xxx stevedores.
Since then, the "community or mutuality of academic, i.e., janitors, messengers, typists, clerks,
interests" test has provided the standard in receptionists, carpenters, electricians, grounds-
determining the proper constituency of a collective keepers, chauffeurs, mechanics,
bargaining unit. In Alhambra Cigar & Cigarette plumbers; 32 and two, the group made up of those
Manufacturing Company, et al. vs. Alhambra performing academic functions, i.e., full professors,
Employees' Association (PAFLU), 107 Phil. 23, the associate professors, assistant professors,
Court, noting that the employees in the instructors who may be judges or government
administrative, sales and dispensary departments executives and research, extension and
of a cigar and cigarette manufacturing firm perform professorial staff. 33 Not much reflection is needed
work which have nothing to do with production to perceive that the community or mutuality of
and maintenance, unlike those in the raw lead interests which justifies the formation of a single
(malalasi), cigar, cigarette, packing (precintera) and collective bargaining unit is wanting between the
engineering and garage departments, authorized academic and non-academic personnel of the
the formation of the former set of employees into university. It would seem obvious that teachers
a separate collective bargaining unit. The ruling in would find very little in common with the
the Democratic Labor Association case, supra, was University clerks and other non-academic
reiterated in Philippine Land-Air-Sea Labor Unit vs. employees as regards responsibilities and
Court of Industrial Relations, 110 Phil. 176, where functions, working conditions, compensation rates,
casual employees were barred from joining the social life and interests, skills and intellectual
union of the permanent and regular employees. pursuits, cultural activities, etc. On the contrary,
Applying the same "community or mutuality of the dichotomy of interests, the dissimilarity in the
interests" test, but resulting in the formation of nature of the work and duties as well as in the
only one collective bargaining units is the case compensation and working conditions of the
of National Association of Free Trade Unions vs. academic and non-academic personnel dictate the
Mainit Lumber Development Company Workers separation of these two categories of employees
Union-United Lumber and General Workers of the for purposes of collective bargaining. The
Phils., G.R. No. 79526, December 21, 1990, 192 formation of two separate bargaining units, the
SCRA 598. In said case, the Court ordered the first consisting of the rank-and-file non-academic
formation of a single bargaining unit consisting of personnel, and the second, of the rank-and-file
the Sawmill Division in Butuan City and the Logging academic employees, is the set-up that will best
Division in Zapanta Valley, Kitcharao, Agusan Norte assure to all the employees the exercise of their
of the Mainit Lumber Development Company. The collective bargaining rights. These special
Court reasoned: circumstances, i.e., the dichotomy of interests and
Certainly, there is a mutuality of concerns as well as the dissimilarity in the nature
interest among the employees of and conditions of work, wages and compensation
the Sawmill Division and the Logging between the academic and non-academic
Division. Their functions mesh with personnel, bring the case at bar within the
one another. One group needs the exception contemplated in Section 9 of Executive
other in the same way that the Order No. 180. It was grave abuse of discretion on
company needs them both. There the part of the Labor Relations Director to have
may be difference as to the nature ruled otherwise, ignoring plain and patent realities.
of their individual assignments but WHEREFORE, the assailed Order of October 30,
the distinctions are not enough to 1990 is hereby AFFIRMED in so far as it declares the
warrant the formation of a separate professors, associate professors and assistant
bargaining unit. professors of the University of the Philippines as
In the case at bar, the University employees may, rank-and-file employees. The Order of August 7,
as already suggested, quite easily be categorized 1990 is MODIFIED in the sense that the non-
into two general classes: one, the group composed academic rank-and-file employees of the University
of employees whose functions are non- of the Philippines shall constitute a bargaining unit
to the exclusion of the academic employees of the roster of rank and file employees submitted by St.
institution i.e., full professors, associate James, which did not include the names of the 84
professors, assistant professors, instructors, and voters. Med-Arbiter Falconitin also ruled that since
the research, extension and professorial staff, who the construction projects have ceased, some of the
may, if so minded, organize themselves into a workers were no longer entitled to vote in the
separate collective bargaining unit; and that, certification election. Finally, Med-Arbiter
therefore, only said non-academic rank-and-file Falconitin ruled that even if the 84 workers were to
personnel of the University of the Philippines in be included in the 179 rank and file employees of
Diliman, Manila, Los Baos and the Visayas are to St. James, the total number of voters would be
participate in the certification election. 263. Thus, the 84 votes cast would not be sufficient
SO ORDERED. to constitute a majority of all eligible voters to have
St. James vs. Samahan GR No. 151326 a valid certification election. The dispositive
The Case portion of the Order reads:

Before the Court is a petition for review[1] assailing WHEREFORE, premises


the 5 September 2001 Decision and 3 January 2002 considered, the certification election
Resolution of the Court of Appeals[2] in CA-G.R. SP protest is hereby given due course.
No. 60197. The Court of Appeals sustained the
Decision of the Department of Labor and Accordingly, judgment is
Employment (DOLE) directing the opening of the hereby rendered, declaring the
challenged ballots cast during the certification certification election for the rank
election. and file employees of
respondent/protestant St. James
School of Quezon City conducted on
The Antecedent Facts June 26, 1999, a failure; and null and
void ab initio.
The Samahang Manggagawa sa St. James School of
Quezon City (Samahang Manggagawa) filed a SO ORDERED.[4]
petition for certification election to determine the
collective bargaining representative of the motor
pool, construction and transportation employees of Samahang Manggagawa appealed to the Secretary
St. James School of Quezon City (St. James). On 26 of Labor. In its Decision[5] dated 5 May 2000, the
June 1999, the certification election was held at the DOLE[6] reversed the ruling of Med-Arbiter
DOLE office in Intramuros, Manila. There were 149 Falconitin. The DOLE ruled that Samahang
eligible voters and 84 voters cast their votes. St. Manggagawa seeks to represent the non-academic
James filed a certification election protest personnel or the rank and file employees from the
challenging the 84 votes. St. James alleged that it motor pool, construction and transportation
had 179 rank and file employees, none of whom departments, and not all the rank and file
voted in the certification election. St. James argued employees of St. James. According to the DOLE,
that those who voted were not its regular Med-Arbiter Falconitin erred in including all the
employees but construction workers of an rank and file employees of St. James, whether
independent contractor, Architect Conrado Bacoy teaching or non-teaching personnel, in the
(Architect Bacoy). computation of the total number of employees.
The DOLE ruled that the list submitted by St. James
In an Order dated 6 January 2000,[3] Med-Arbiter contained only the administrative, teaching and
Tomas F. Falconitin (Med-Arbiter Falconitin) ruled office personnel of the school. The dispositive
that at the time of the certification election, the 84 portion of the Decision reads:
voters were no longer working at St. James. Med-
Arbiter Falconitin supported his ruling using the
WHEREFORE, the appeal is employees of Architect Bacoy, an independent
hereby GRANTED and the order contractor.
dated 06 January 2000 of the Med-
Arbiter is REVERSED and SET ASIDE. St. James may no longer question the
In lieu thereof, an order is hereby validity of the formation of the labor union.
issued directing the Election Officer,
Lilibeth Cagara, DOLE-National The records[13] show that prior to the
Capital Region to open and canvass holding of the certification election, St. James filed
the 84 challenged ballots within ten a petition for cancellation of Samahang
(10) days from receipt hereof, Manggagawas union registration. Among the
subject to usual notice and grounds cited in the petition was the lack of
representation by the parties and employer-employee relationship between St.
thereafter to issue the James and Samahang Manggagawas members. The
corresponding certification of the Med-Arbiter recommended the cancellation of the
results. union registration. DOLE Regional Director IV
Romeo Young (Director Young) adopted the Med-
SO DECIDED.[7] Arbiters recommendation and cancelled Samahang
Manggagawas union registration. Samahang
Manggagawa filed an appeal before the Bureau of
St. James filed a motion for reconsideration. The Labor Relations (BLR). In its Decision[14] dated 22
DOLE[8] denied the motion in its 19 June 2000 January 1998, the BLR[15]reversed Director Youngs
Resolution.[9] St. James filed a special civil action Decision. In its Resolution[16] of 12 February 1998,
before the Court of Appeals. the BLR denied St. James motion for
reconsideration. St. James filed a special civil action
In a Decision[10] dated 5 September 2001, the Court before the Court of Appeals. The case was
of Appeals dismissed the petition and ruled that docketed as CA-G.R. SP No. 50918. In its 9 February
the DOLE did not commit grave abuse of discretion 2001 Decision,[17] the Court of Appeals dismissed
in reversing the ruling of Med-Arbiter Falconitin. In St. James petition and affirmed the BLRs Decision.
its 3 January 2002 Resolution,[11] the Court of The Court of Appeals ruled that the construction
Appeals denied St. James motion for workers are actually St. James regular employees in
reconsideration. its motor pool, construction and transportation
Hence, the petition before this Court. departments. The Court of Appeals also ruled that
Architect Bacoy is a labor-only contractor and thus
The Issues an agent of St. James, which is the real employer.

St. James questions the validity of the St. James filed a petition for certiorari
formation of the labor union and the validity of the before this Court. The case was docketed as G.R.
certification election.[12] No. 149648. In a Resolution dated 10 October
2001, this Court denied the petition for St. James
error in the choice or mode of appeal.[18] The
The Ruling of the Court Courts 10 October 2001 Resolution closed any
issue on the validity of the formation of the labor
The petition has no merit. union.

The Validity of the Formation of the Labor Union The Validity of the Certification Election

St. James argues that majority of the members of Section 13, Rule XII, Book V of the Omnibus Rules
Samahang Manggagawa are not its employees but Implementing the Labor Code (Omnibus Rules)
provides:
Bacoy. St. James also alleges that it has 570 rank
Section 13. Proclamation and and file employees in all its campuses. Even if the
certification of results by election 84 voters are its employees, the votes do not
officer; when proper. Upon constitute a majority vote of its rank and file
completion of the canvass there employees because the quorum should be based
being a valid election, the election on its 570 rank and file employees.
officer shall proclaim and certify as
winner the union which obtained a We cannot sustain the argument.
majority of the valid votes cast
under any of the following St. James has five campuses the Philamlife and
conditions: Scout Alcaraz, Quezon City campuses which are
pre-schools; the Paraaque City and Calamba,
a) No protest had been Laguna campuses which offer elementary,
filed or, even if one was secondary and college education; and the Tandang
filed, the same was not Sora, Quezon City campus which offers elementary
perfected within the five- and secondary education.[19]
day period for perfection
of the protest; The members of Samahang Manggagawa are
employees in the Tandang Sora campus. Under its
b) No challenge of constitution and by-laws, Samahang Manggagawa
eligibility issue was raised seeks to represent the motor pool, construction
or even if one was raised, and transportation employees of the Tandang Sora
the resolution of the campus.[20] Thus, the computation of the quorum
same will not materially should be based on the rank and file motor pool,
change the result. construction and transportation employees of the
Tandang Sora campus and not on all the employees
For this purpose, the election in St. James five campuses.
officer shall immediately issue the
corresponding certification, copy Section 2, Rule XII, Book V of the Omnibus
furnished all parties, which shall Rules provides:
form part of the records of the case.
The winning union shall have the Section 2. Qualification of
rights, privileges and obligations of a voters; inclusion-exclusion
duly certified collective bargaining proceedings. All employees who are
representative from the time the members of the appropriate
certification is issued. The bargaining unit sought to be
proclamation and certification so represented by the petitioner at the
issued shall not be appealable. time of the certification or consent
election shall be qualified to vote. A
dismissed employee whose
dismissal is being contested in a
According to St. James, the certification pending case shall be allowed to
election was conducted without quorum. St. James vote in the election.
alleges that it has 179 rank and file employees in its
Quezon City Campus. When the certification In case of disagreement over
election was held, none of these qualified rank and the voters list or over the eligibility
file employees cast their votes because they were of voters, all contested voters shall
all on duty in the school premises. The 84 voters be allowed to vote. However, their
who cast their votes are employees of Architect votes shall be segregated and sealed
in individual envelopes in Francisco D. Alas for respondent Associated Labor
accordance with Section 9 of these Unions-TUCP.
Rules.
PARAS, J.:
This is a petition for certiorari and prohibition with
preliminary injunction seeking to annul or to set
The motor pool, construction and transportation aside the resolution of the Bureau of Labor
employees of the Tandang Sora campus had 149 Relations dated November 24, 1986 and denying
qualified voters at the time of the certification the appeal, and the Bureau's resolution dated
election. Hence, the 149 qualified voters should be January 13, 1987 denying petitioner's motion for
used to determine the existence of a quorum. reconsideration.
Since a majority or 84 out of the 149 qualified The dispositive portion of the questioned
voters cast their votes, a quorum existed in the resolution dated November 24, 1986 (Rollo, p. 4)
certification election. reads as follows:
WHEREFORE, in view of all the
foregoing considerations, the Order
is affirmed and the appeal
St. James further alleges that the names of the 84 therefrom denied.
voters are not on the list of its rank and file Let, therefore, the pertinent records
employees. On this score, we sustain the factual of the case be remanded to the
finding of the DOLE that the list submitted by St. office of origin for the immediate
James consists of its administrative, teaching and conduct of the certification election.
office personnel. These administrative, teaching The dispositive portion of the resolution dated
and office personnel are not members of January 13, 1987 (Rollo, p. 92) reads, as follows:
Samahang Manggagawa. They do not belong to the WHEREFORE, the Motion for
bargaining unit that Samahang Manggagawa seeks Reconsideration filed by respondent
to represent. Hence, the list submitted by St. James Belyca Corporation (Livestock Agro-
may not be used as basis to determine the Division) is hereby dismissed for lack
members of Samahang Manggagawa. of merit and the Bureau's Resolution
dated 24 November 1986 is
WHEREFORE, we DENY the petition. affirmed. Accordingly, let the
We AFFIRM the 5 September 2001 Decision and records of this case be immediately
the 3 January 2002 Resolution of the Court of forwarded to the Office of origin for
Appeals in CA-G.R. SP No. 60197. the holding of the certification
elections.
SO ORDERED. No further motion shall hereafter be
BELYCA CORPORATION, petitioner, entertained.
vs. The antecedents of the case are as follows:
DIR. PURA FERRER CALLEJA, LABOR RELATIONS, On June 3, 1986, private respondent Associated
MANILA, MINISTRY OF LABOR AND Labor Union (ALU)-TUCP, a legitimate labor
EMPLOYMENT; MED-ARBITER, RODOLFO S. organization duly registered with the Ministry of
MILADO, MINISTRY OF LABOR AND Labor and Employment under Registration
EMPLOYMENT, REGIONAL OFFICE NO. 10 AND Certificate No. 783-IP, filed with the Regional Office
ASSOCIATED LABOR UNION (ALU-TUCP), No. 10, Ministry of Labor and Employment at
MINDANAO REGIONAL OFFICE, CAGAYAN DE ORO Cagayan de Oro City, a petition for direct
CITY, respondents. certification as the sole and exclusive bargaining
Soriano and Arana Law Offices for petitioner. agent of all the rank and file employees/workers of
The Solicitor General for public respondent. Belyca Corporation (Livestock and Agro-Division), a
duly organized, registered and existing corporation
engaged in the business of poultry raising, piggery Respondent employer, on the other hand, alleged
and planting of agricultural crops such as corn, in its position paper, among others, (1) that due to
coffee and various vegetables, employing the nature of its business, very few of its
approximately 205 rank and file employees are permanent, the overwhelming
employees/workers, the collective bargaining unit majority of which are seasonal and casual and
sought in the petition, or in case of doubt of the regular employees; (2) that of the total 138 rank-
union's majority representation, for the issuance of and-file employees who authorized, signed and
an order authorizing the immediate holding of a supported the filing of the petition (a) 14 were no
certification election (Rollo, p. 18). Although the longer working as of June 3, 1986 (b) 4 resigned
case was scheduled for hearing at least three after June, 1986 (c) 6 withdrew their membership
times, no amicable settlement was reached by the from petitioner union (d) 5 were retrenched on
parties. During the scheduled hearing of July 31, June 23, 1986 (e) 12 were dismissed due to
1986 they, however, agreed to submit malicious insubordination and destruction of
simultaneously their respective position papers on property and (f) 100 simply abandoned their work
or before August 11, 1986 (rollo. p. 62). or stopped working; (3) that the 128 incumbent
Petitioner ALU-TUCP, private respondent herein, in employees or workers of the livestock section were
its petition and position paper alleged, among merely transferred from the agricultural section as
others, (1) that there is no existing collective replacement for those who have either been
bargaining agreement between the respondent dismissed, retrenched or resigned; and (4) that the
employer, petitioner herein, and any other existing statutory requirement for holding a certification
legitimate labor unions; (2) that there had neither election has not been complied with by the union
been a certification election conducted in the (Rollo, p. 26).
proposed bargaining unit within the last twelve The Labor Arbiter granted the certification election
(12) months prior to the filing of the petition nor a sought for by petitioner union in his order dated
contending union requesting for certification as August 18, 1986 (Rollo, p. 62).
the. sole and exclusive bargaining representative in On February 4, 1987, respondent employer Belyca
the proposed bargaining unit; (3) that more than a Corporation, appealed the order of the Labor
majority of respondent employer's rank-and-file Arbiter to the Bureau of Labor Relations in Manila
employees/workers in the proposed bargaining (Rollo, p. 67) which denied the appeal (Rollo, p. 80)
unit or one hundred thirty-eight (138) as of the and the motion for reconsideration (Rollo, p. 92).
date of the filing of the petition, have signed Thus, the instant petition received in this Court by
membership with the ALU-TUCP and have mail on February 20, 1987 (Rollo, p. 3).
expressed their written consent and authorization In the resolution of March 4, 1987, the Second
to the filing of the petition; (4) that in response to Division of this Court required respondent Union to
petitioner union's two letters to the proprietor/ comment on the petition and issued a temporary
General Manager of respondent employer, dated restraining order (,Rollo, p. 95).
April 21, 1986 and May 8, 1 986, requesting for Respondent union filed its comment on March 30,
direct recognition as the sole and exclusive 1987 (Rollo, p. 190); public respondents filed its
bargaining agent of the rank-and-file workers, comment on April 8, 1987 (Rollo, p. 218).
respondent employer has locked out 119 of its On May 4, 1987, the Court resolved to give due
rank-and-file employees in the said bargaining unit course to the petition and to require the parties to
and had dismissed earlier the local union president, submit their respective memoranda within twenty
vice-president and three other active members of (20) days from notice (Rollo, p. 225).
the local unions for which an unfair labor practice The Office of the Solicitor General manifested on
case was filed by petitioner union against June 11, 1987 that it is adopting the comment for
respondent employer last July 2, 1986 before the public respondents as its memorandum (Rollo, p.
NLRC in Cagayan de Oro City (Rollo, pp. 18; 226); memorandum for respondent ALU was filed
263).<re||an1w> on June 30, 1987 (Rollo, p. 231); and memorandum
for petitioner, on July 30, 1987 (Rollo, p. 435).
The issues raised in this petition are: the right at any time
I to present grievances
WHETHER OR NOT THE PROPOSED to their employer.
BARGAINING UNIT IS AN According to Rothenberg, a proper bargaining unit
APPROPRIATE BARGAINING UNIT. maybe said to be a group of employees of a given
II employer, comprised of all or less than all of the
WHETHER OR NOT THE STATUTORY entire body of employees, which the collective
REQUIREMENT OF 30% (NOW 20%) interests of all the employees, consistent with
OF THE EMPLOYEES IN THE equity to the employer, indicate to be best suited
PROPOSED BARGAINING UNIT, to serve reciprocal rights and duties of the parties
ASKING FOR A CERTIFICATION under the collective bargaining provisions of the
ELECTION HAD BEEN STRICTLY law (Rothenberg in Labor Relations, p. 482).
COMPLIED WITH. This Court has already taken cognizance of the
In the instant case, respondent ALU seeks direct crucial issue of determining the proper
certification as the sole and exclusive bargaining constituency of a collective bargaining unit.
agent of all the rank-and-file workers of the Among the factors considered in Democratic Labor
livestock and agro division of petitioner BELYCA Association v. Cebu Stevedoring Co. Inc. (103 Phil
Corporation (Rollo, p. 232), engaged in piggery, 1103 [1958]) are: "(1) will of employees (Glove
poultry raising and the planting of agricultural Doctrine); (2) affinity and unity of employee's
crops such as corn, coffee and various vegetables interest, such as substantial similarity of work and
(Rollo, p. 26). But petitioner contends that the duties or similarity of compensation and working
bargaining unit must include all the workers in its conditions; (3) prior collective bargaining history;
integrated business concerns ranging from piggery, and (4) employment status, such as temporary,
poultry, to supermarts and cinemas so as not to seasonal and probationary employees".
split an otherwise single bargaining unit into Under the circumstances of that case, the Court
fragmented bargaining units (Rollo, p. stressed the importance of the fourth factor and
435).<re||an1w> sustained the trial court's conclusion that two
The Labor Code does not specifically define what separate bargaining units should be formed in
constitutes an appropriate collective bargaining dealing with respondent company, one consisting
unit. Article 256 of the Code provides: of regular and permanent employees and another
Art. 256. Exclusive consisting of casual laborers or stevedores.
bargaining Otherwise stated, temporary employees should be
representative.The treated separately from permanent employees. But
labor organization more importantly, this Court laid down the test of
designated or proper grouping, which is community and
selected by the mutuality of interest.
majority of the Thus, in a later case, (Alhambra Cigar and Cigarette
employees in an Manufacturing Co. et al. v. Alhambra Employees'
appropriate collective Association 107 Phil. 28 [1960]) where the
bargaining unit shall employment status was not at issue but the nature
be exclusive of work of the employees concerned; the Court
representative of the stressed the importance of the second factor
employees in such otherwise known as the substantial-mutual-
unit for the purpose interest test and found no reason to disturb the
of collective finding of the lower Court that the employees in
bargaining. However, the administrative, sales and dispensary
an individual departments perform work which has nothing to
employee or group of do with production and maintenance, unlike those
employee shall have in the raw leaf, cigar, cigarette and packing and
engineering and garage departments and therefore cinemas. To lump all the employees of petitioner in
community of interest which justifies the format or its integrated business concerns cannot result in an
existence as a separate appropriate collective efficacious bargaining unit comprised of
bargaining unit. constituents enjoying a community or mutuality of
Still later in PLASLU v. CIR et al. (110 Phil. 180 interest. Undeniably, the rank and file employees
[1960]) where the employment status of the of the livestock-agro division fully constitute a
employees concerned was again challenged, the bargaining unit that satisfies both requirements of
Court reiterating the rulings, both in Democratic classification according to employment status and
Labor Association v. Cebu Stevedoring Co. Inc. of the substantial similarity of work and duties
supra and Alhambra Cigar and Cigarette Co. et al. which will ultimately assure its members the
v. Alhambra Employees' Association (supra) held exercise of their collective bargaining rights.
that among the factors to be considered are: II
employment status of the employees to be It is undisputed that petitioner BELYCA Corporation
affected, that is the positions and categories of (Livestock and Agro Division) employs more or less
work to which they belong, and the unity of two hundred five (205) rank-and-file employees
employees' interest such as substantial similarity of and workers. It has no existing duly certified
work and duties. collective bargaining agreement with any
In any event, whether importance is focused on the legitimate labor organization. There has not been
employment status or the mutuality of interest of any certification election conducted in the
the employees concerned "the basic test of an proposed bargaining unit within the last twelve
asserted bargaining unit's acceptability is whether (12) months prior to the filing of the petition for
or not it is fundamentally the combination which direct certification and/or certification election
will best assure to all employees the exercise of with the Ministry of Labor and Employment, and
their collective bargaining rights (Democratic Labor there is no contending union requesting for
Association v. Cebu Stevedoring Co. Inc. supra) certification as the sole and exclusive bargaining
Hence, still later following the substantial-mutual representative in the proposed bargaining unit.
interest test, the Court ruled that there is a The records show that on the filing of the petition
substantial difference between the work for certification and/or certification election on
performed by musicians and that of other persons June 3, 1986; 124 employees or workers which are
who participate in the production of a film which more than a majority of the rank-and-file
suffice to show that they constitute a proper employees or workers in the proposed bargaining
bargaining unit. (LVN Pictures, Inc. v. Philippine unit had signed membership with respondent ALU-
Musicians Guild, 1 SCRA 132 [1961]). TUCP and had expressed their written consent and
Coming back to the case at bar, it is beyond authorization to the filing of the petition. Thus, the
question that the employees of the livestock and Labor Arbiter ordered the certification election on
agro division of petitioner corporation perform August 18, 1986 on a finding that 30% of the
work entirely different from those performed by statutory requirement under Art. 258 of the Labor
employees in the supermarts and cinema. Among Code has been met.
others, the noted difference are: their working But, petitioner corporation contends that after
conditions, hours of work, rates of pay, including June 3, 1986 four (4) employees resigned; six (6)
the categories of their positions and employment subsequently withdrew their membership; five (5)
status. As stated by petitioner corporation in its were retrenched; twelve (12) were dismissed for
position paper, due to the nature of the business in illegally and unlawfully barricading the entrance to
which its livestock-agro division is engaged very petitioner's farm; and one hundred (100) simply
few of its employees in the division are permanent, abandoned their work.
the overwhelming majority of which are seasonal Petitioner's claim was however belied by the
and casual and not regular employees (Rollo, p. Memorandum of its personnel officer to the 119
26). Definitely, they have very little in common employees dated July 28, 1986 showing that the
with the employees of the supermarts and employees were on strike, which was confirmed by
the finding of the Bureau of Labor Relations to the to unorganized establishments under Art. 257, of
effect that they went on strike on July 24, 1986 the Labor Code, to which the BELYCA Corporation
(Rollo, p. 419). Earlier the local union president, belong (Ass. Trade Unions (ATU) v. Trajano, G.R.
Warrencio Maputi; the Vice-president, Gilbert No. 75321, June 20, 1988).) More than that, any
Redoblado and three other active members of the doubt cast on the authenticity of signatures to the
union Carmen Saguing, Roberto Romolo and petition for holding a certification election cannot
Iluminada Bonio were dismissed and a complaint be a bar to its being granted (Filipino Metals Corp.
for unfair labor practice, illegal dismissal etc. was v. Ople 107 SCRA 211 [1981]). Even doubts as to
filed by the Union in their behalf on July 2, 1986 the required 30% being met warrant holding of the
before the NLRC of Cagayan de Oro City (Rollo, p. certification election (PLUM Federation of
415).<re||an1w> The complaint was amended Industrial and Agrarian Workers v. Noriel, 119 SCRA
on August 20, 1986 for respondent Union to 299 [1982]). In fact, once the required percentage
represent Warrencio Maputi and 137 others requirement has been reached, the employees'
against petitioner corporation and Bello Casanova withdrawal from union membership taking place
President and General Manager for unfair labor after the filing of the petition for certification
practice, illegal dismissal, illegal lockout, etc. (Rollo, election will not affect said petition. On the
p. 416). contrary, the presumption arises that the
Under Art. 257 of the Labor Code once the withdrawal was not free but was procured through
statutory requirement is met, the Director of Labor duress, coercion or for a valuable consideration (La
Relations has no choice but to call a certification Suerte Cigar and Cigarette Factory v. Director of
election (Atlas Free Workers Union AFWU PSSLU the Bureau of Labor Relations, 123 SCRA 679
Local v. Noriel, 104 SCRA 565 [1981]; Vismico [1983]). Hence, the subsequent disaffiliation of the
Industrial Workers Association (VIWA) v. Noriel, six (6) employees from the union will not be
131 SCRA 569 [1984]) It becomes in the language counted against or deducted from the previous
of the New Labor Code "Mandatory for the Bureau number who had signed up for certification
to conduct a certification election for the purpose elections Vismico Industrial Workers Association
of determining the representative of the (VIWA) v. Noriel 131 SCRA 569
employees in the appropriate bargaining unit and [1984]).<re||an1w> Similarly, until a decision,
certify the winner as the exclusive bargaining final in character, has been issued declaring the
representative of all employees in the unit." strike illegal and the mass dismissal or
(Federacion Obrera de la Industria Tabaquera y retrenchment valid, the strikers cannot be denied
Otros Trabajadores de Filipinas v. Noriel, 72 SCRA participation in the certification election
24 [1976]; Kapisanan Ng Mga Manggagawa v. notwithstanding, the vigorous condemnation of the
Noriel, 77 SCRA 414 [1977]); more so when there is strike and the fact that the picketing were attended
no existing collective bargaining agreement. by violence. Under the foregoing circumstances, it
(Samahang Manggagawa Ng Pacific Mills, Inc. v. does not necessarily follow that the strikers in
Noriel, 134 SCRA 152 [1985]); and there has not question are no longer entitled to participate in the
been a certification election in the company for the certification election on the theory that they have
past three years (PLUM Federation of Industrial automatically lost their jobs. (Barrera v. CIR, 107
and Agrarian Workers v. Noriel, 119 SCRA 299 SCRA 596 [1981]). For obvious reasons, the duty of
[1982]) as in the instant case. the employer to bargain collectively is nullified if
It is significant to note that 124 employees out of the purpose of the dismissal of the union members
the 205 employees of the Belyca Corporation have is to defeat the union in the consent requirement
expressed their written consent to the certification for certification election. (Samahang Manggagawa
election or more than a majority of the rank and Ng Via Mare v. Noriel, 98 SCRA 507 [1980]). As
file employees and workers; much more than the stressed by this Court, the holding of a certification
required 30% and over and above the present election is a statutory policy that should not be
requirement of 20% by Executive Order No. 111 circumvented. (George and Peter Lines Inc. v.
issued on December 24, 1980 and applicable only
Associated Labor Unions (ALU), 134 SCRA 82
[1986]).
Finally, as a general rule, a certification election is
the sole concern of the workers. The only
exception is where the employer has to file a
petition for certification election pursuant to Art.
259 of the Labor Code because the latter was
requested to bargain collectively. But thereafter
the role of the employer in the certification process
ceases. The employer becomes merely a bystander
(Trade Union of the Phil. and Allied Services
(TUPAS) v. Trajano, 120 SCRA 64 [1983]).
There is no showing that the instant case falls
under the above mentioned exception. However, it
will be noted that petitioner corporation from the
outset has actively participated and consistently
taken the position of adversary in the petition for
direct certification as the sole and exclusive
bargaining representative and/or certification
election filed by respondent Associated Labor
Unions (ALU)-TUCP to the extent of filing this
petition for certiorari in this Court. Considering that
a petition for certification election is not a litigation
but a mere investigation of a non-adversary
character to determining the bargaining unit to
represent the employees (LVN Pictures, Inc. v.
Philippine Musicians Guild, supra; Bulakena
Restaurant & Caterer v. Court of Industrial
Relations, 45 SCRA 88 [1972]; George Peter Lines,
Inc. v. Associated Labor Union, 134 SCRA 82 [1986];
Tanduay Distillery Labor Union v. NLRC, 149 SCRA
470 [1987]), and its only purpose is to give the
employees true representation in their collective
bargaining with an employer (Confederation of
Citizens Labor Unions CCLU v. Noriel, 116 SCRA 694
[1982]), there appears to be no reason for the
employer's objection to the formation of subject
union, much less for the filing of the petition for a
certification election.
PREMISES CONSIDERED, (a) the petition is
DISMISSED for lack of merit (b) resolution of the
Bureau of Labor Relations dated Nov. 24, 1986 is
AFFIRMED; and the temporary restraining order
issued by the Court on March 4, 1987 is LIFTED
permanently.
SO ORDERED.

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