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Chico-NAzario | September 12, 2007
Doctrine:

 
3Ê   
|etition is the incumbent bargaining unit for the monthy paid rank and file
employees of three divisions of San Miguel (SMCSU, SMB|, And SM||
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 Is registered as a chapter of |ambansang Diwa ng Manggagawang |ilipino.
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  After acquiring legal personality, respondent filed three separate petitions for
certification election to represent SM||, SMCSU and SMB|, all of which were dismissed on the
ground that they fragmented a single bargaining unit.
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 They filed a petition with DOLE-NCR seeking the cancellation of Respondent͛s
registration and its dropping from the rolls of legitimate labor organizations.
÷Ê   
 Fraud, falsification, non-compliance with registration requirements.
÷Ê Not a labor organization, but a trade union center, and could not directly create a local
or chapter.
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0

 
-hile the allegations of fraud and misrepresentation were dismissed,
hethey found the respondent did not comply with the 20% membership requirement and
ordered the cancellation of its certificate of registration.
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Respondent successfully defended itself by arguing that as a chartered local
union, they are not required to submit the number of employees, and such has no basis in the
rules.
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 BLR ruling affirmed.

G 
-as respondent required to submit the 20% membership list?

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‰ES, based on Art 234 (c of the Labor Code. It also must be based not on a single
division but on all three divisions because they were all part of one bargaining unit.
3Ê c
 ‰ES.
÷Ê Legitimate labor union is defined as ͞any labor organization duly registered with the
DOLE and includes Y
Y Y 

.͟
÷Ê Implementing Rules procedure for creating a union can be by: a Affiliation of an
independent union b direct creation through chartering
÷Ê Direct Creation is done by submitting a charter certificate, names of officers, by-laws.
÷Ê |




. -hen an unregistered union becomes a branch, local,
or chapter, some of the aforementioned requirements for registration are no longer
necessary or compulsory. They do not have to submit a list of employees and names of
its members comprising 20% of the bargaining units. (The intent was to encourage
filiation of a local union with federation or national union
÷Ê |YYY Y
 YY . No inconsistency between LC and DO 9.
÷Ê Affiliation does not require submitting a list of members, but registering as an
independent union does.
3Ê A trade union center cannot create a local or chapter.
3Ê Although |DM| as a trade union center is a legitimate labor organization, it has no power to
directly create a local or chapter. SM||EU-|DM| cannot be created under the more lenient
requirements for chartering, but must have complied with the more stringent rules for creation
and regulation of an independent union, including the 20% membership requirement.