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The inclusion in a union of disqualified employees cannot be used as a
ground for a petition for cancellation of union registration, unless such inclusion is
due to misrepresentation, false statement or fraud, in connection with the adoption
or ratification of the constitution and by-laws, the minutes of ratification, and the list
of members who took part in the ratification; or in connection with the election of
officers, minutes of the election, and the list of voters. The alleged
misrepresentation of a union by making it appear that its membership was
composed purely of rank-and-file employees is not the misrepresentation that
amounts to a ground for cancellation of registration.

The test of supervisory or managerial status depends on whether a person
possesses authority to act in the interest of his/her employer and whether such
authority is not merely routinary or clerical in nature but requires the use of
independent judgment. Policy-determining refers to policy-determination in
matters that may be the subject of negotiation between management and labor.

The prohibition in Art. 245 is not confined to a case of individual employees
(rank-and-file and supervisors) co-mingling in the same union. The prohibition
extends to a supervisors union joining a national federation the members of which
include unions of rank-and-file employees of the same employer unit. For this
extension of the prohibition in Article 245 to apply, however, two conditions must
concur: (a) the rank-and-file employees are directly under the authority of the
supervisory employees; and (b) the national federation is actively involved in union
activities in the company. Even the membership of a rank-and-file union and a
supervisory union of the same company in two separate federations with a common
set of officers was held to be prohibited co-mingling.

The prohibition to join labor organizations extends to confidential employees
or those who by reason of their positions or nature of work are required to assist or
act in a fiduciary manner to managerial employees. Two criteria must concur for an
employee to be considered a confidential employee: (a) the confidential relationship
must exist between the employee and his superior officer; and (b) the officer must
handle responsibilities relating to labor relations. A key element that must be
considered is the employees necessary access to confidential labor relations
information - access must not only be incidental but must be necessary in the
performance of the employees duties.

False statements made by union officers before and during a certification
election that the union is independent and not affiliated with a national federation
interfere with the free choice of the employees, and can be a valid ground for a
protest. A certification election may be set aside for misstatements made during
the campaign, where (1) a material fact has been misrepresented; (2) an
opportunity for reply has been lacking; and (3) the misrepresentation has had an
impact on the free choice of the employees in the election.

After a certificate of registration is issued to a union, its legal personality
cannot be subject to collateral attack. It may be questioned only in an independent
petition for cancellation.

The pendency of a petition for cancellation of a unions registration will not
suspend an ongoing certification election case. Neither will such petition for
cancellation preclude or suspend collective bargaining. The pendency of a petition
for cancellation is not a ground for the employer to refuse to bargain with the
certified bargaining agent.

The test of whether an employer has interfered with and coerced employees
in the exercise of their rights to self-organization is whether the employer has
engaged in conduct which it may reasonably be said tends to interfere with the free
exercise of the employees rights. It is not necessary that there be direct evidence
that any employee was in fact coerced. It is only necessary that there is a
reasonable inference that anti-union conduct of the employer does have an adverse
effect on self-organization and collective bargaining. Under the totality of conduct
doctrine, the culpability of the employer should be evaluated against the
background of and in conjunction with all collateral circumstances.

Report of violations of rights and conditions of union membership does not
always require the support of 30% of the union membership. A report of a violation
of rights and conditions of membership in a labor organization may be made by any
member or members especially concerned.

The State shall regulate the relations between workers and employers,
recognizing the right of labor to its just share in the fruits of production and the right

of enterprises to reasonable returns on investments. Workers shall participate in

policy and decision-making processes affecting their rights and benefits as may be
provided by law.