Republic of the Philippines

SUPREME COURT
Manila
SECOND DIVISION
G.R. No. 9!" Septe#be$ %&' %99%
CENTR() NEGROS E)ECTRIC COOPER(TIVE' INC. *CENECO+' petitione$'
,s.
-ONOR(.)E SECRET(R/' DEP(RTMENT O0 )(.OR (ND EMP)O/MENT' an1 CENECO
UNION O0 R(TION() EMP)O/EES *CURE+' $espon1ents.
Enrique S. Tabino for petitioner.
Edmundo G. Manlapao for private respondent.

REG()(DO' J.:p
In this special ci,il action fo$ ce$tio$a$i' petitione$ Cent$al Ne2$os Elect$ic Coope$ati,e' Inc.
*CENECO+ see3s to annul the o$1e$
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issue1 b4 then (ctin2 Sec$eta$4 of )abo$ .ien,eni1o E.
)a2ues#a on 5une 6' %99!' 1ecla$in2 the p$o7ecte1 ce$tification election unnecessa$4 an1 1i$ectin2
petitione$ CENECO to continue $eco2ni8in2 p$i,ate $espon1ent CENECO Union of Rational
E#plo4ees *CURE+ as the sole an1 e9clusi,e ba$2ainin2 $ep$esentati,e of all the $an3:an1:file
e#plo4ees of petitione$;s elect$ic coope$ati,e fo$ pu$poses of collecti,e ba$2ainin2.
It appea$s f$o# the $eco$1s that on (u2ust %"' %9<=' CENECO ente$e1 into a collecti,e ba$2ainin2
a2$ee#ent >ith CURE' a labo$ union $ep$esentin2 its $an3:an1:file e#plo4ees' p$o,i1in2 fo$ a te$#
of th$ee 4ea$s $et$oacti,e to (p$il %' %9<= an1 e9ten1in2 up to Ma$ch &%' %99!. On Dece#be$ ?<'
%9<9' CURE >$ote CENECO p$oposin2 that ne2otiations be con1ucte1 fo$ a ne> collecti,e
ba$2ainin2 a2$ee#ent *C.(+.
On 5anua$4 %<' %99!' CENECO 1enie1 CURE;s $e@uest on the 2$oun1 that' un1e$ applicable
1ecisions of the Sup$e#e Cou$t' e#plo4ees >ho at the sa#e ti#e a$e #e#be$s of an elect$ic
coope$ati,e a$e not entitle1 to fo$# o$ 7oin a union.
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P$io$ to the sub#ission of the p$oposal fo$ C.( $ene2otiation' CURE #e#be$s' in a 2ene$al
asse#bl4 hel1 on Dece#be$ 9' %9<9' app$o,e1 Resolution No. &" >he$eb4 it >as a2$ee1 that ;tall
union #e#be$s shall >ith1$a>' $et$act' o$ $ecall the union #e#be$s; #e#be$ship f$o# Cent$al
Ne2$os Elect$ic Coope$ati,e' Inc. in o$1e$ to a,ail *of+ the full benefits un1e$ the e9istin2 Collecti,e
.a$2ainin2 (2$ee#ent ente$e1 into b4 an1 bet>een CENECO an1 CURE' an1 the suppose1
benefits that ou$ union #a4 a,ail *of+ un1e$ the $ene>e1 C.(.
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This >as $atifie1 b4 ?"9 of the &6?
union #e#be$s. CENECO an1 the Depa$t#ent of )abo$ an1 E#plo4#ent' .acolo1 Dist$ict' >e$e
fu$nishe1 copies of this $esolution.
-o>e,e$' the >ith1$a>al f$o# #e#be$ship >as 1enie1 b4 CENECO on 0eb$ua$4 ?=' %99! un1e$
Resolution No. 9! Afo$ the $eason that the basis of >ith1$a>al is not a#on2 the 2$oun1s co,e$e1 b4
.oa$1 Resolution No. "!?&' 1ate1 No,e#be$ ??' %9<9 an1 that sai1 $e@uest is cont$a$4 to .oa$1
Resolution No. "!&& 1ate1 Dece#be$ %&' %9<9' ...A


.4 $eason of CENECO;s $efusal to $ene2otiate a ne> C.(' CURE file1 a petition fo$ 1i$ect
$eco2nition o$ fo$ ce$tification election' suppo$te1 b4 ?<? o$ =?B of the &<< $an3:an1:file
e#plo4ees in the ba$2ainin2 unit of CENECO.
CENECO file1 a #otion to 1is#iss on the 2$oun1 that the$e a$e le2al const$aints to the filin2 of the
ce$tification election' citin2 the $ulin2 lai1 1o>n b4 this Cou$t in Batangas I Electric Cooperative
abor !nion vs. "omeo #. $oung'
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*.(T(NG(S case+ to the effect that Ae#plo4ees >ho at the
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sa#e ti#e a$e #e#be$s of an elect$ic coope$ati,e a$e not entitle1 to fo$# o$ 7oin unions fo$
pu$poses of collecti,e ba$2ainin2 a2$ee#ent' fo$ ce$tainl4 an o>ne$ cannot ba$2ain >ith hi#self o$
his co:o>ne$s.A
Me1:($bite$ 0eli8a$1o T. Se$apio issue1 an o$1e$'
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2$antin2 the petition fo$ ce$tification election
>hich' in effect' >as a 1enial of CENECO;s #otion to 1is#iss' an1 1i$ectin2 the hol1in2 of a
ce$tification election bet>een CURE an1 No Union.
CENECO appeale1 to the Depa$t#ent of )abo$ an1 E#plo4#ent >hich issue1 the @uestione1
o$1e$ #o1if4in2 the afo$estate1 o$1e$ of the #e1:a$bite$ b4 1i$ectl4 ce$tif4in2 CURE as the
e9clusi,e ba$2ainin2 $ep$esentati,e of the $an3:an1:file e#plo4ees of CURE.
-ence' this petition.
Petitione$ CENECO a$2ues that $espon1ent Sec$eta$4 co##itte1 a 2$a,e abuse of 1isc$etion in not
appl4in2 to the p$esent case the 1oct$ine enunciate1 in the .(T(NG(S case that e#plo4ees of an
elect$ic coope$ati,e >ho at the sa#e ti#e a$e #e#be$s of the elect$ic coope$ati,e a$e p$ohibite1
f$o# fo$#in2 o$ 7oinin2 labo$ unions fo$ pu$poses of a collecti,e ba$2ainin2 a2$ee#ent. Chile
CENECO $eco2ni8es the e#plo4ees; $i2ht to self:o$2ani8ation' it a,e$s that this is not absolute.
Thus' it opines that e#plo4ees of an elect$ic coope$ati,e >ho at the sa#e ti#e a$e #e#be$s
the$eof a$e not allo>e1 to fo$# o$ 7oin labo$ unions fo$ pu$poses of collecti,e ba$2ainin2. -o>e,e$'
petitione$ 1oes not hesitate to a1#it that the p$ohibition 1oes not e9ten1 to e#plo4ees of an
elect$ic coope$ati,e >ho a$e not #e#be$s of the coope$ati,e.
The issue' the$efo$e' actuall4 in,ol,es a 1ete$#ination of >hethe$ o$ not the e#plo4ees of
CENECO >ho >ith1$e> thei$ #e#be$ship f$o# the coope$ati,e a$e entitle1 to fo$# o$ 7oin CURE
fo$ pu$poses of the ne2otiations fo$ a collecti,e ba$2ainin2 a2$ee#ent p$opose1 b4 the latte$.
(s culle1 f$o# the $eco$1s' it is the sub#ission of CENECO that the >ith1$a>al f$o# #e#be$ship
in the coope$ati,e an1' as a conse@uence' the e#plo4ees; ac@uisition of #e#be$ship in the union
cannot be allo>e1 fo$ the follo>in2 $easonsD
%. It >as #a1e as a subte$fu2e o$ to sub,e$t the $ulin2 in the .(T(NG(S caseD
?. To allo> the >ith1$a>al of the #e#be$s of CENECO f$o# the coope$ati,e
>ithout 7ustifiable $eason >oul1 2$eatl4 affect the ob7ecti,es an1 2oals of petitione$
as an elect$ic coope$ati,eE
&. The Sec$eta$4 of )abo$' as >ell as the Me1:($bite$' has no 7u$is1iction o,e$ the
issue of the >ith1$a>al f$o# #e#be$ship >hich is ,este1 in the National
Elect$ification (1#inist$ation *NE(+ >hich has 1i$ect cont$ol an1 supe$,ision o,e$
the ope$ations of elect$ic coope$ati,esE an1
. (ssu#in2 that the Sec$eta$4 has 7u$is1iction' CURE faile1 to e9haust
a1#inist$ati,e $e#e1ies b4 not $efe$$in2 the #atte$ of #e#be$ship >ith1$a>al to
the NE(.
The petition is 1estitute of #e$itE ce$tio$a$i >ill not lie.
Ce fi$st $ule on the alle2e1 p$oce1u$al infi$#ities affectin2 the instant case. CENECO a,e$s that the
#e1:a$bite$ has no 7u$is1iction to $ule on the issue of >ith1$a>al f$o# #e#be$ship of its e#plo4ees
in the coope$ati,e >hich' it clai#s' is p$ope$l4 ,este1 in the NE( >hich has cont$ol an1 supe$,ision
o,e$ all elect$ic coope$ati,es.
0$o# a pe$usal of petitione$;s #otion to 1is#iss file1 >ith the #e1:a$bite$' it beco#es $ea1il4
appa$ent that the sole basis fo$ petitione$;s #otion is the ille2alit4 of the e#plo4ees; #e#be$ship in
$espon1ent union 1espite the fact that the4 alle2e1l4 a$e still #e#be$s of the coope$ati,e.
Petitione$ itself a1opte1 the afo$esai1 a$2u#ent in see3in2 the 1is#issal of the petition fo$
ce$tification election file1 >ith the #e1:a$bite$' an1 the fin1in2 #a1e b4 the latte$ >as #e$el4 in
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ans>e$ to the a$2u#ents a1,ance1 b4 petitione$. -ence' petitione$ is 1ee#e1 to ha,e sub#itte1
the issue of #e#be$ship >ith1$a>al f$o# the coope$ati,e to the 7u$is1iction of the #e1:a$bite$ an1
it is no> estoppe1 f$o# @uestionin2 that sa#e 7u$is1iction >hich it in,o3e1 in its #otion to 1is#iss
afte$ obtainin2 an a1,e$se $ulin2 the$eon.
Un1e$ ($ticle ?"6 of the )abo$ Co1e' to ha,e a ,ali1 ce$tification election at least a #a7o$it4 of all
eli2ible ,ote$s in the unit #ust ha,e cast thei$ ,otes. It is appa$ent that inci1ental to the po>e$ of
the #e1:a$bite$ to hea$ an1 1eci1e $ep$esentation cases is the po>e$ to 1ete$#ine >ho the eli2ible
,ote$s a$e. In so 1oin2' it is a9io#atic that the #e1:a$bite$ shoul1 1ete$#ine the le2alit4 of the
e#plo4ees; #e#be$ship in the union. In the case at ba$' it ob,iousl4 beco#es necessa$4 to
consi1e$ fi$st the p$op$iet4 of the e#plo4ees; #e#be$ship >ith1$a>al f$o# the coope$ati,e befo$e a
ce$tification election can be ha1.
)astl4' it is petitione$ he$ein >ho is actuall4 @uestionin2 the p$op$iet4 of the >ith1$a>al of its
#e#be$s f$o# the coope$ati,e. Petitione$ coul1 ha,e b$ou2ht the #atte$ befo$e the NE( if it
>ante1 to an1. if such $e#e14 ha1 $eall4 been a,ailable' an1 the$e is nothin2 to p$e,ent it f$o#
1oin2 so. It >oul1 be absu$1 to fault the e#plo4ees fo$ the ne2lect o$ la9it4 of petitione$ in
p$otectin2 its o>n inte$ests.
The a$2u#ent of CENECO that the >ith1$a>al >as #e$el4 to sub,e$t the $ulin2 of this Cou$t in the
.(T(NG(S case is >ithout #e$it. The case $efe$$e1 to #e$el4 1ecla$e1 that e#plo4ees >ho a$e at
the sa#e ti#e #e#be$s of the coope$ati,e cannot 7oin labo$ unions fo$ pu$poses of collecti,e
ba$2ainin2. -o>e,e$' no>he$e in sai1 case is it state1 that #e#be$:e#plo4ees a$e p$ohibite1 f$o#
>ith1$a>in2 thei$ #e#be$ship in the coope$ati,e in o$1e$ to 7oin a labo$ union.
(s 1iscusse1 b4 the Solicito$ Gene$al' ($ticle I' Section 9 of the ($ticles of Inco$po$ation an1 .4:
)a>s of CENECO p$o,i1es that Aan4 #e#be$ #a4 >ith1$a> f$o# #e#be$ship upon co#pliance
>ith such unifo$# te$#s an1 con1itions as the .oa$1 #a4 p$esc$ibe.A The sa#e section p$o,i1es
that upon >ith1$a>al' the #e#be$ is #e$el4 $e@ui$e1 to su$$en1e$ his #e#be$ship ce$tificate an1
he is to be $efun1e1 his #e#be$ship fee less an4 obli2ation that he has >ith the coope$ati,e.
The$e appea$s to be no othe$ con1ition o$ $e@ui$e#ent i#pose1 upon a >ith1$a>in2 #e#be$.
-ence' the$e is no 7ust cause fo$ petitione$;s 1enial of the >ith1$a>al f$o# #e#be$ship of its
e#plo4ees >ho a$e also #e#be$s of the union.
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The alle2e1 boa$1 $esolutions $elie1 upon b4 petitione$ in 1en4in2 the >ith1$a>al of the #e#be$s
conce$ne1 >e$e ne,e$ p$esente1 no$ thei$ contents 1isclose1 eithe$ befo$e the #e1:a$bite$ o$ the
Sec$eta$4 of )abo$ if onl4 to p$o,e the $atiocination fo$ sai1 1enial. 0u$the$#o$e' CENECO ne,e$
a,e$$e1 non:co#pliance >ith the te$#s an1 con1itions fo$ >ith1$a>al' if an4. It appea$s that the
($ticles of Inco$po$ation of CENECO 1o not p$o,i1e an4 2$oun1 fo$ >ith1$a>al f$o# #e#be$ship
>hich acco$1in2l4 2i,es $ise to the p$esu#ption that the sa#e #a4 be 1one at an4 ti#e an1 fo$
>hate,e$ $eason. In a11ition' #e#be$ship in the coope$ati,e is on a ,olunta$4 basis. -ence'
>ith1$a>al the$ef$o# cannot be $est$icte1 unnecessa$il4. The $i2ht to 7oin an o$2ani8ation
necessa$il4 inclu1es the e@ui,alent $i2ht not to 7oin the sa#e.
The $i2ht of the e#plo4ees to self:o$2ani8ation is a co#pellin2 $eason >h4 thei$ >ith1$a>al f$o# the coope$ati,e #ust be allo>e1. (s pointe1 out b4
CURE' the $esi2nation of the #e#be$: e#plo4ees is an e9p$ession of thei$ p$efe$ence fo$ union #e#be$ship o,e$ that of #e#be$ship in the
coope$ati,e. The a,o>e1 polic4 of the State to affo$1 fall p$otection to labo$ an1 to p$o#ote the p$i#ac4 of f$ee collecti,e ba$2ainin2 #an1ates that
the e#plo4ees; $i2ht to fo$# an1 7oin unions fo$ pu$poses of collecti,e ba$2ainin2 be acco$1e1 the hi2hest consi1e$ation.
Me#be$ship in an elect$ic coope$ati,e >hich #e$el4 ,ests in the #e#be$ a $i2ht to ,ote 1u$in2 the annual #eetin2 beco#es too t$i,ial an1
insubstantial ,is:a:,is the p$i#o$1ial an1 #o$e i#po$tant constitutional $i2ht of an e#plo4ee to 7oin a union of his choice. .esi1es' the &9! e#plo4ees
of CENECO' so#e of >ho# ha,e ne,e$ been #e#be$s of the coope$ati,e' $ep$esent a ,e$4 s#all pe$centa2e of the coope$ati,e;s total #e#be$ship
of '!!!. It is inconcei,able ho> the >ith1$a>al of a ne2li2ible nu#be$ of #e#be$s coul1 a1,e$sel4 affect the business conce$ns an1 ope$ations of
CENECO.
Ce $ule' ho>e,e$' that the 1i$ect ce$tification o$1e$e1 b4 $espon1ent Sec$eta$4 is not p$ope$. .4
,i$tue of E9ecuti,e O$1e$ No. %%%' >hich beca#e effecti,e on Ma$ch ' %9<=' the 1i$ect ce$tification
o$i2inall4 allo>e1 un1e$ ($ticle ?"= of the )abo$ Co1e has appa$entl4 been 1iscontinue1 as a
#etho1 of selectin2 the e9clusi,e ba$2ainin2 a2ent of the >o$3e$s. This a#en1#ent affi$#s the
supe$io$it4 of the ce$tification election o,e$ the 1i$ect ce$tification >hich is no lon2e$ a,ailable no>
un1e$ the chan2e in sai1 p$o,ision.
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Ce ha,e sai1 that >he$e a union has file1 a petition fo$ ce$tification election' the #e$e fact that no
opposition is #a1e 1oes not >a$$ant a 1i$ect ce$tification.
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In sai1 case >hich has si#ila$ featu$es
to that at ba$' >he$ein the $espon1ent Ministe$ 1i$ectl4 ce$tifie1 the union' >e hel1 thatD
... (s pointe1 out b4 petitione$ in its petition' >hat the $espon1ent Ministe$
achie,e1 in $en1e$in2 the assaile1 o$1e$s >as to #a3e a #oc3e$4 of the
p$oce1u$e p$o,i1e1 un1e$ the la> fo$ $ep$esentation cases becauseD ... *c+ .4
1i$ectl4 ce$tif4in2 a Union >ithout sufficient p$oof of #a7o$it4 $ep$esentation' he has
in effect a$$o2ate1 unto hi#self the $i2ht' ,este1 natu$all4 in the e#plo4ee;s to
choose thei$ collecti,e ba$2ainin2 $ep$esentati,e. *1+ -e has in effect i#pose1
upon the petitione$ the obli2ation to ne2otiate >ith a union >hose #a7o$it4
$ep$esentation is un1e$ se$ious @uestion. This is hi2hl4 i$$e2ula$ because >hile the
Union en7o4s the blessin2 of the Ministe$' it 1oes not en7o4 the blessin2 of the
e#plo4ees. Petitione$ is the$efo$e un1e$ th$eat of bein2 hel1 liable fo$ $efusin2 to
ne2otiate >ith a union >hose $i2ht to ba$2ainin2 status has not been le2all4
establishe1.
Chile the$e #a4 be so#e factual ,a$iances' the $ationale the$ein is applicable to the p$esent case
in the sense that it is not alone sufficient that a union has the suppo$t of the #a7o$it4. Chat is
e@uall4 i#po$tant is that e,e$4one be 2i,en a 1e#oc$atic space in the ba$2ainin2 unit conce$ne1.
The #ost effecti,e >a4 of 1ete$#inin2 >hich labo$ o$2ani8ation can t$ul4 $ep$esent the >o$3in2
fo$ce is b4 ce$tification election.
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C-ERE0ORE' the @uestione1 o$1e$ fo$ the 1i$ect ce$tification of $espon1ent CURE as the
ba$2ainin2 $ep$esentati,e of the e#plo4ees of petitione$ CENECO is he$eb4 (NNU))ED an1 SET
(SIDE. The #e1:a$bite$ is he$eb4 o$1e$e1 to con1uct a ce$tification election a#on2 the $an3:an1:
file e#plo4ees of CENECO >ith CURE an1 No Union as the choices the$ein.
SO ORDERED.
Melencio%&errera 'C(airperson)* +aras and +adilla* JJ.* concur.
Sarmiento* J.* is on leave.
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