Labor Dispute
probationary, or contract employees and workers are excluded from the bargaining
SAN MIGUEL CORPORATION EMPLOYEES UNION-PTGWO, DANIEL
S.L. BORBON II, HERMINIA REYES, MARCELA PURIFICACION, ET
AL., petitioners,
vs.
HON. JESUS G. BERSAMIRA, IN HIS CAPACITY AS PRESIDING
JUDGE OF BRANCH 166, RTC, PASIG, and SAN MIGUEL
CORPORATION, respondents.
186 SCRA 496 | G.R. No. 87700
June 13, 1990
Ponente: Melencio-Herrera, J.
NATURE OF CASE
Writ of Certiorari
BRIEF
Before the Court is an appeal from the Decision of RTC Branch 166 of Pasig where
the petitioners’ plea is that the Writ of Preliminary Injunction was issued without
or in excess of jurisdiction and with grave abuse of discretion, a labor dispute being
involved.
FACTS
San Miguel Corporation entered into contracts for merchandising services with
Lipercon and D’Rite companies, both independent contractors duly licensed by
DOLE, to maintain its competitive position, and in keeping with the imperatives of
efficiency, business expansion and diversity of operation. In the contracts, it was
expressly agreed that the workers employed by the contractors were not to be
deemed employees or agents of San Miguel. Thus, no employer-employee
relationship.
Later on, San Miguel executed a CBA which specifically provides that “temporary,
unit and therefore, outside the scope of this Agreement.”
The Union, petitioner, advised San Miguel that some of the workers of Lipercon
and D’Rite had signed up for union membership and sought regularization. The
Union alleged that some the workers have been continuously working for San
Miguel for a period ranging from 6 months to 15 years, and that the nature of their
work is neither casual nor seasonal.
Strikes were held and a series of pickets were held for the reason that the Union
failed to receive any favourable response from San Miguel. Thereafter, San Miguel
filed a complaint for Injunction and Damages before the RTC of Pasig to enjoin the
Union to prevent the peaceful and normal operations of the former. The Union filed
a Motion to Dismiss but was subsequently denied by the RTC reasoning that the
absence of employer-employee relationship negates the existence of labor dispute.
Thus, the RTC issued Orders enjoining the Union from commiting acts that disrupt
the operations of San Miguel.
ISSUE/s of the CASE
Whether or not there is a labor dispute between San Miguel and the Union?
ACTION OF THE COURT
SC: The decision of the RTC is SET ASIDE.
COURT RATIONALE ON THE ABOVE CASE
A labor dispute includes any controvery or matter concerning terms and conditions
of employment or the association or representation of persons in negotiating, fixing,
maintaining, changing, or arranging the terms and conditions or employment,
regardless of whether the disputants stand in the proximate relation of employer and
employee.
What the Union seeks is to regularize the status of the employees contracted by
Liparcon and D’Rite and that they be absorbed into the working unit of San Miguel.
In this wise, the matter dwells on the working relationship between the said
employees and San Miguel. Terms, tenure and conditions of their employment and
the arrangement of those terms are thus involved bringing the matter within the
purview of a labor dispute. Further, the Union also seeks to represent the workers,
who have signed for union membership, for the purpose of collecting bargaining.
Obvious then is that representation and association, for the purpose of negotiating
the conditions of employment are also involved. In fact, the injunction sought by
San Miguel was precisely also to prevent such representation. Again, the matter of
representation falls squarely within the ambit of a labor dispute.

As the case is indisputably linked with a labor dispute, jurisdiction belongs to labor
tribunals.

SUPREME COURT RULING

WHEREFORE, the Writ of Certiorari is GRANTED. The Orders of the Regional
Trial Court of Pasig is SET ASIDE.

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