ABS-CBN SUPERVISORS EMPLOYEES UNION MEMBERS v. ABS-CBN BROADCASTING CORP. G.R. No.

106518, March 11, 1999 Facts: The ABS-CBN Supervisors Union, represented by the Union Officers and ABS-CBN Broadcasting Corporation signed and concluded a collective bargaining agreement with a check-off of 10% of the sum total of all the salary increases and signing bonuses granted to the Supervisors. However, the Union members filed a complaint with the Bureau of Labor Relations against its Union Officers and ABS-CBN Broadcasting alleging that the check off provision is illegal because it was never submitted for consideration and approval to all the members at a general membership meeting called for the purpose, and prayed for its suspension. The Union Officers and ABS-CBN prayed for the dismissal of the complaint for lack of merit, arguing that the check-off provision is in accordance with the law as majority of the Union members individually executed a written authorization giving the Union officers and ABS-CBN a blanket authority to deduct subject amount. The Med-Arbiter issued an order declaring the check-off provision illegal and ordered for the refund of an amount advance by ABS-CBN as part of the 10% sum total of CBA benefits and to stop from further making advances and deductions from the union members salaries. On appeal, DOLE Undersecretary Laguesma affirmed in toto the Order of the Med-Arbiter. However, after filing of a Motion for Reconsideration, Undersecretary Laguesma reversed itself and ordered that its first decision be set aside and dismissed the complaint for lack of merit. Issue: Is the special assessment of 10% of the sum total of CBA benefits illegal? Law Applicable: Art. 241 (g), (n) and (o), and Art. 222 (b) of the Labor Code Art. 241. Rights and conditions of membership in a labor organization The following are the rights and conditions of membership in a labor organization: xxx xxx xxx (g) No officer, agent, or member of a labor organization shall collect any fees, dues or other contributions in its behalf to make any disbursement of its money or funds unless he is duly authorized pursuant to its constitution and by-laws. xxx xxx xxx (n) No special assessment or other extraordinary fees may be levied upon members of a labor organization unless authorized by a written resolution of a majority of all the members of a general membership meeting duly called for the purpose. The secretary of the organization shall record the minutes of the meeting including the list of all members present, the votes cast, the purpose of the special assessment or fees and the recipient of such assessment or fees. The record shall be attested to by the president. (o) Other than for mandatory activities under the Code, no special assessments, attorneys fees, negotiation fees or any other extraordinary fees may be checked

off from any amount due to an employee without an individual written authorization duly signed by the employee. The authorization should specifically state the amount, purpose and beneficiary of the deductions. Art. 222. Appearances and Fees xxx xxx xxx (b) No attorneys fees, negotiation fees or similar charges of any kind arising from collective bargaining negotiations or conclusion of the collective agreement shall be imposed on any individual member of the contracting union: Provided, however, that attorneys fees may be charged against union funds in an amount to be agreed upon by the parties. Any contract, agreement or arrangement of any sort to the contrary shall be null and void. Ruling: The 10% special assessment authorized in the Collective Bargaining Agreement is valid. For an order imposing a special assessment for Unions incidental expenses, attorneys fees and representation expenses to be valid, 3 requisites must be complied with namely: (1) authorization by a written resolution of the majority of all the members at the general membership meeting duly called for the purpose; (2) secretarys record of the minutes of the meeting; and (3) individual written authorization for check-off duly signed by the employee concerned. Based on the records of the case, these requisites have been complied with by the Union. A general meeting was held wherein the members agreed that a 10% special assessment from the total economic package due to every member would be checked-off for negotiation, other miscellaneous expenses and attorneys fees. The minutes of the said meeting were recorded by the Unions Secretary, Ma. Carminda Muoz and noted by its President, Herbert Rivera and that 85 of its members executed individual authorizations for check-off. Since all of the requisites are present, the validity of the 10% special assessment should be upheld. Opinion: A check-off is a process of deducting a percentage from a Union members wages for the payment of union dues and fees to be considered as funds of the Union. This policy is to ensure that the Union has ample amount of funds to continue its operation and to provide better services to its members. However, the law provides for its limitations and certain requisites must be complied with for the valid imposition of check offs. These requisites are: 1. Authorization by a written resolution of the majority of all the members at a general membership meeting duly called for the purpose; 2. Secretarys record of the minutes of the meeting; and 3. Individual written authorization for check-off duly signed by the employee concerned. Failure on the part of the Union to meet these requirements would render such imposition illegal which would be tantamount to a deprivation to an employee of his basic living wage. Any deductions already made must be reimbursed back to its members.