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MARIWASA SIAM CERAMICS, INC., vs.

THE SECRETARY OF THE


DEPARTMENT OF LABOR AND EMPLOYMENT, et al ISSUES:
G.R. No. 183317 December 21, 2009 1) Whether or not there was failure to comply with the 20% union
membership requirement
FACTS: 2) Whether or not the withdrawal of 31 union members affected the
On May 2005, private respondent Samahan Ng Mga Manggagawa Sa petition for certification election insofar as the 30% requirement is
Mariwasa Siam Ceramics, Inc. (SMMSC-Independent) was issued a concerned
Certificate of Registration as a legitimate labor organization by the
Department of Labor and Employment (DOLE), Region IV-A. RULING
The Supreme Court DENIED the petition.
On June 2005, petitioner Mariwasa Siam Ceramics, Inc. filed a
Petition for Cancellation of Union Registration against private On the first issue, while it is true that the withdrawal of support may
respondent, claiming that the latter violated Article 234 of the Labor be considered as a resignation from the union, the fact remains that
Code for not complying with the 20% requirement and that it at the time of the union’s application for registration, the affiants
committed massive fraud and misrepresentation in violation of were members of respondent and they comprised more than the
Article 239 of the same code. required 20% membership for purposes of registration as a labor
union. Article 234 of the Labor Code merely requires a 20% minimum
The Regional Director of DOLE IV-A issued an Order granting the membership during the application for union registration. It does not
petition, revoking the registration of respondent, and delisting it mandate that a union must maintain the 20% minimum membership
from the roster of active labor unions. requirement all throughout its existence.

SMMSC-Independent appealed to the Bureau of Labor Relations. BLR On the second issue, it appears undisputedly that the 31 union
ruled in favor of the respondent, thus, they remain in the roster of members had withdrawn their support to the petition before the
legitimate labor organizations. filing of said petition. The distinction must be that withdrawals made
before the filing of the petition are presumed voluntary unless there
The petitioner appealed and insisted that private respondent failed is convincing proof to the contrary, whereas withdrawals made after
to comply with the 20% union membership requirement for its the filing of the petition are deemed involuntary. Therefore,
registration as a legitimate labor organization because of the following jurisprudence, the employees were not totally free from
disaffiliation from the total number of union members of 102 the employer’s pressure and so the voluntariness of the employees’
employees who executed affidavits recanting their union execution of the affidavits becomes suspect.
membership
The cancellation of a union’s registration doubtless has an impairing
Hence, this petition for review on certiorari under Rule 45 of the dimension on the right of labor to self-organization. For fraud and
Rules of Court. misrepresentation to be grounds for cancellation of union
registration under the Labor Code, the nature of the fraud and irregularities,especially those appearing on the face of the
misrepresentation must be grave and compelling enough to vitiate application and the supporting documents, a labor organization
the consent of a majority of union members. should be denied recognitin as a legitimate labor org.
Wherefore, inasmuch as the legal personality of respondent union
Progressive development corporation-pizza hut,petitioner had been seriously challenge,it would have been more prudent to
v.Laguesma,Undersec of labor,&NLM defendant have granted petitioners request for the suspension of proceedings
Facts in the cert election case,until the issue of the legality of the unions
registration shall have been resolved.Failure of the med-arbiter and
NLM-Katipunan filed a petition for certification election with the public respondent to heed the request constituted a grave abuse of
DOLE in behalf of the rank''n file employees of the progressive dev. discretion.
corp(pizza hut).Petitioners filed a motion to dismiss alleging fraud,
falsification and misrepresentation in the respondent. The motion San Miguel Corp. VS Mandaue
specifically alleged that a.) respondent union registration was tainted
with false, forged, double or multiple signatures of those who Facts
allegedly took part in the ratification of the respondent union's
constitution and by-laws and in the election of its officers that there -CA affirmes DOLE Undersecretary for Labor Relations, Rosalinda
were 2 sets of supposed attendees to the alleged organizational Dimapilis-Baldoz, ordering the immediate conduct of a certification
meeting that was alleged to have taken place on june26,1993. b.) election among the petitioner’s rank-and-file employees.
while the application for registration of the charter was supposed to
have been approved in the organizational meeting held on much less, -Federation of Free Workers (FFW/ respondent) filed a petition for
c.) application for registration of the charter was supposed to have certification election with the DOLE Regional Office No. VII. It sought
been approved in the organizational meeting held on 1993, the to be certified and to represent the permanent rank-andfile monthly
charter cert issued by the federation KATIPUNAN was dated 1993 or paid employees of the petitioner. The following documents were
1 day prior to the formation of the chapter, thus, there were serious attached to the petition: (1) a Charter Certificate certifying that
falsities in the dates of the issuance of the charter cert and the respondent as of that date was duly certified as a local or chapter of
organization meeting of the alleged chapter. d.) voting was not FFW; (2) a copy of the constitution of respondent prepared by its
conducted by secret ballot in violation of atr. 241,sec(c) of the labor Secretary, Noel T. Bathan and attested by its President, Wilfred V.
code (e) the constitution & by laws submitted. Sagun; (3) a list of respondent’s officers and their respective
Issue addresses, again prepared by Bathan and attested by Sagun; (4) a
Challege the legal personality of the respondent union. certification signifying that respondent had just been organized and
Ruling no amount had yet been collected from its members, signed by
The court held that to determine the validity of labor unions art.234 respondent’s treasurer Chita D. Rodriguez and attested by Sagun;
requiremets of registration must be complied with. If its application and (5) a list of all the rank-and-file monthly paid employees of the
for registration is vitiated by falsification and serious Mandaue Packaging Products Plants and Mandaue Glass Plant
prepared by Bathan and attested by Sagun. -SMC (Petitioner) filed a -Respondent submitted to the Bureau of Labor Relations the same
motion to dismiss the petition for certification election on the sole documents earlier attached to its petition for certification. The
ground that herein respondent is not listed or included in the roster accompanying letter, signed by respondent’s president Sagun, stated
of legitimate labor organizations based on the certification issued by that such documents were submitted in compliance with the
the Officer-In representative, then right to be represented by a requirements for the creation of a local/chapter pursuant to the
bargaining agent should not be denied to other members of the Labor Code and its Implementing Rules; and it was hoped that the
bargaining unit.” submissions would facilitate the listing of respondent under the
roster of legitimate labor organizations.The Chief of Labor Relations
HELD Division of DOLE Regional Office No. VII issued a Certificate of
Creation of Local/Chapter No. ITD. I-ARFBT-058/98, certifying that
1. NO. Ratio EFFECT NON-PARTICIPIATION PREVIOUS ELECTION. No from 30 July 1998, respondent has acquired legal personality as a
law, administrative rule or precedent prescribes forfeiture of the labor organization/worker’s association, it having submitted all the
right to vote by reason of neglect to exercise the right in past required documents.
certification elections.
San Miguel VS Laguesma
2. NO. Ratio RELIGION/PAST NON-PARTICIPATION. Neither law, FACTS:
administrative rule nor jurisprudence requires that only employees
affiliated with any labor organization may take part in a certification In the case of San Miguel Corporation Supervisors and Exempt Union
election. On the contrary, the plainly discernible intendment of the v. Laguesma, the Court held that even if they handle confidential data
law is to grant the right to vote to all bona fide employees in the regarding technical and internal business operations, supervisory
bargaining unit, whether they are members of a labor organization employees 3 and 4 and the exempt employees of petitioner San
or not. Miguel Foods, Inc. are not to be considered confidential employees,
because the same do not pertain to labor relations, particularly,
6.3. negotiation and settlement of grievances. Consequently, they were
allowed to form an appropriate bargaining unit for the purpose of
CERTIFICATION ELECTIONPROCESS collective bargaining. The Court also declared that the employees
belonging to the three different plants of San Miguel Corporation
1. The Union as Initiating Party ART. 212. Definitions. -(h) “Legitimate Magnolia Poultry Products Plants in Cabuyao, San Fernando, and Otis,
labor organization” means any labor organization duly registered having community or mutuality of interests, constitute a single
with the Department of Labor and Employment, and includes any bargaining unit.
branch or local thereof. Charge, Regional Director of the DOLE
Regional Office No. VII, Atty. Jesus B. Gabor. A certification election was conducted. On the date of the election,
petitioner filed the Omnibus Objections and Challenge to Voters,
questioning the eligibility to vote by some of its employees on the
grounds that some employees do not belong to the bargaining unit It held that while the existence of a bargaining history is a factor that
which respondent seeks to represent or that there is no existence of may be reckoned with in determining the appropriate bargaining unit,
employer-employee relationship with petitioner. the same is not decisive or conclusive. Other factors must be
considered. The test of grouping is community or mutuality of
Based on the results of the election, the Med-Arbiter issued the interest. This is so because the basic test of an asserted bargaining
Order stating that since the Yes vote received 97% of the valid votes unit’s acceptability is whether or not it is fundamentally the
cast, respondent is certified to be the exclusive bargaining agent of combination which will best assure to all employees the exercise of
the supervisors and exempt employees of petitioner's Magnolia their collective bargaining rights. Certainly, there is a mutuality of
Poultry Products Plants in Cabuyao, San Fernando, and Otis. interest among the employees. Their functions mesh with one
another. One group needs the other in the same way that the
On appeal, the then Acting DOLE Undersecretary, in the Resolution, company needs them both. There may be differences as to the nature
affirmed the Order of the Med-Arbiter. of their individual assignments, but the distinctions are not enough
to warrant the formation of a separate bargaining unit.
CA affirmed the Resolution of DOLE Undersecretary with
modification stating that those holding the positions of Human The Court affirms the finding of the CA that there should be only one
Resource Assistant and Personnel Assistant are excluded from the bargaining unit for the employees in Cabuyao, San Fernando, and
bargaining unit. Otis of Magnolia Poultry Products Plant involved in dressed chicken
processing and Magnolia Poultry Farms engaged in live chicken
Hence, this petition by the San Miguel Foods operations. Certain factors, such as specific line of work, working
conditions, location of work, mode of compensation, and other
ISSUE: W/N CA departed from jurisprudence when it expanded the relevant conditions do not affect or impede their commonality of
scope of the bargaining unit. interest. Although they seem separate and distinct from each other,
the specific tasks of each division are actually interrelated and there
RULING: No. In San Miguel vs Laguesma, the Court explained that the exists mutuality of interests which warrants the formation of a single
employees of San Miguel Corporation Magnolia Poultry Products bargaining unit.
Plants of Cabuyao, San Fernando, and Otis constitute a single
bargaining unit, which is not contrary to the one-company, one-union Acedera v International Container Services
policy. An appropriate bargaining unit is defined as a group of FACTS:
employees of a given employer, comprised of all or less than all of Jerry Acedera, et al. are employees of International Container
the entire body of employees, which the collective interest of all the Terminal Services, Inc. (ICTSI) and are members of Associated Port
employees, consistent with equity to the employer, indicate to be Checkers & Workers Union-International Container Terminal Services,
best suited to serve the reciprocal rights and duties of the parties Inc.(APCWU-ICTSI), a duly registered labor organization. ICTSI
under the collective bargaining provisions of the law. entered into a five-year Collective Bargaining Agreement (CBA) with
APCWU which reduced the employees· work days from 304 to 250 whose interests are already represented will not be permitted to do
days a year. the same except when there is a suggestion of fraud or collusion or
that there representative will not act in good faith for the protection
The Wage Board decreed wage increases in NCR which affected ICTSI. of all interests represented by him.
Upon the request of APCWU to compute the actual monthly increase
in the employee’s salary by multiplying the mandated increase by 2. Acedera et al. cite the dismissal of the case filed by ICTSI, first by
365days and dividing by12 months, ICTSI stopped using 304 days as the Labor Arbiter, and later by the Court of Appeals. The dismissal of
divisor and started using 365 days to determine the daily wage. the case does not, however, by itself show the existence of fraud or
collusion or a lack of good faith on the part of APCWU.
Later on, ICTSI entered into a retrenchment program which
prompted APCWU to file a complaint before the Labor Arbiter (LA) 3. There must be clear and convincing evidence of fraud or collusion
for ICTSI·s use of 365 days, instead of 250 days, as divisor in the o lack of good faith independently of the dismissal. This, Acedera et
computation of wages. Acedera et al. filed a Motion to Intervene al. failed to proffer. Acedera et al. likewise express their fear that
which was denied by the LA. On appeal, National Labor Relations APCWU would not prosecute the case diligently because of its
Commission (NLRC) affirmed LA·s decision. Acedera et al. filed a “sweetheart relationship" with ICTSI. There is nothing on record,
petition for certiorari to the Court of Appeals (CA) which was however, to support this alleged relationship which allegation
dismissed. surfaces a a mereafterthought because it was never raised early on.
It was raised only in petitioners-appellants· reply to ICTSI’s comment
LA: denied motion to intervene in the petition at bar, the last pleading submitted to this Court, which
NLRC: affirmed LA’s decision was filed on June 20, 2001 or more than 42 months after petitioners-
CA: dismissed appeal Appellants filed their Complaint-in-Intervention with Motion to
Intervene with the Labor Arbiter.
ISSUE/S:
1. Whether or not Acedera et al. have no legal right to intervene in To reiterate, for a member of a class to be permitted to intervene in
the case as their intervention was a superfluity a representative action, fraud or collusion or lack of good faith on the
part of the representative must be proven. It must be based on facts
borne on record.
RULING: YES, there is unfair labor practice.
Mere assertions, as what petitioners-appellants proffer, do not
1. That APCWUacted in a representative capacity "for and in behalf suffice.
of its Union members and other employees similarly situated, the
title of the case filed by it at the Labor Arbiters Office so expressly Minette Baptista v Rosario Villanueva
states. While a party acting in a representative capacity, such as a FACTS:
union, may be permitted to intervene in a case, ordinarily, a person
Petitioners and other members of the union filed impeachment rules to elect their representatives in full freedom, to organize their
complaint against all the union officers and members of RPNEU and administration and activities and to formulate their programs. In this
audit before the DOLE for suspicion of union mismanagement. case, RPNEU’s Constitution and By-Laws expressly mandate that
Thereafter, complaints, were filed against petitioners and several before a party is allowed to seek the intervention of the court, it is a
others for alleged violation of the union’s Constitution and By-Laws pre-condition that he should have availed of all the internal remedies
and violation of Section 2.5 of Article IX for urging or advocating that within the organization. Petitioners were found to have violated the
a member start an action in any court of justice or external provisions of the union’s Constitution and By-Laws when they filed
investigative body against the Union or its officer without first petitions for impeachment against their union officers and for audit
exhausting all internal remedies open to him or available in before the DOLE without first exhausting all internal remedies
accordance with the CBL. Petitioners and their group denied the available within their organization. This act is a ground for expulsion
charges imputed against them and contested the procedure adopted from union membership. Thus, petitioners’ expulsion from the union
by the Committee in its investigation. was not a deliberate attempt to curtail or restrict their right to
organize, but was triggered by the commission of an act, expressly
The Committee submitted their recommendation of expulsion from sanctioned by the union’s Constitution and By-Laws.
the union to RPNEU’s Board of Directors which the latter affirmed
and they were served expulsion notice. And their employment was Unfortunately, petitioners failed to discharge the burden required to
terminated in compliance with their CBA’s union security clause. prove the charge of ULP against the respondents. Aside from their
self-serving allegations, petitioners were not able to establish how
Petitioners filed complaints for ULP against the respondents they were restrained or coerced by their union in a way that curtailed
questioning legality of their expulsion from the union and their their right to self-organization. The records likewise failed to
subsequent termination from employment. LA ruled in favor of the sufficiently show that the respondents unduly persuaded
petitioners and adjudged the respondents guilty of ULP pursuant to management into discriminating against petitioners. other than to
Article 249 (a) and (b) of the Labor Code. NLRC, on appeal, dismissed bring to its attention their expulsion from the union, which in turn,
the case for lack of merit. CA sustained the NLRC Decision. resulted in the implementation of their CBA’ s union security clause.
As earlier stated, petitioners had the burden of adducing substantial
evidence to support its allegations of ULP, which burden they failed
to discharge. In fact, both the NLRC and the CA found that petitioners
ISSUE: Whether or not the labor organization is guilty of unfair labor were unable to prove their charge of ULP against the respondents.
practice when it expels members pursuant to the Union’s CBL.
THE HERITAGE HOTEL MANILA (OWNED AND OPERATED BY GRAND
PLAZA HOTEL CORPORATION) vs. PINAG-ISANG GALING AT LAKAS NG
MGA MANGGAGAWA SA HERITAGE MANILA (PIGLAS-HERITAGE)
RULING: No. It is well-settled that workers’ and employers’
organizations shall have the right to draw up their constitutions and G.R. No. 177024, October 30, 2009
In 2003, another union, herein respondent Pinag-Isang
Abad, J.: Galing at Lakas ng mga Manggagawa sa Heritage Manila (PIGLAS),
was formed by certain rank and file employees of petitioner at a
DOCTRINES: The Labor Code and its implementing rules do not meeting. PIGLAS was issued its registration certificate by the DOLE-
require that the number of members appearing on the documents in NCR in 2004. HHE later on adopted a resolution for its dissolution and
question should completely dovetail. For as long as the documents then filed a petition for cancellation of its union registration.
and signatures are shown to be genuine and regular and the PIGLAS filed a petition for certification election which
constitution and by-laws democratically ratified, the union is deemed petitioner opposed alleging that the new union’s officers and
to have complied with registration requirements. members were also those who comprised the old union. Petitioner
Labor laws are liberally construed in favor of labor especially likewise alleged that PIGLAS was formed to circumvent the CA’s
if doing so would affirm its constitutionally guaranteed right to self- injunction earlier issued. The Med-Arbiter nevertheless granted the
organization. petition for certification election.
The right of any person to join an organization also includes Petitioner filed a petition to cancel PIGLAS’ registration,
the right to leave that organization and join another one. claiming that the documents submitted with the union’s application
for registration bore the following false information:
FACTS: The Heritage Hotel Employees Union (HHE) was formed in (a) The List of Members showed that the PIGLAS union had 100 union
2000 by certain rank and file employees of herein petitioner Heritage members;
Hotel Manila, to which the Department of Labor and Employment- (b) The Organizational Minutes said that 90 employees attended the
National Capital Region issued a certificate of registration. HHE filed meeting on
a petition for certification election which petitioner opposed on the December 10, 2003;
ground that HHE misrepresented itself to be an independent union, (c) The Attendance Sheet of the meeting of December 10, 2003 bore
when in fact it was a local chapter of the National Union of Workers the signature of
in Hotel and Restaurant and Allied Industries (NUWHRAIN). It was 127 members who ratified the union’s Constitution and By-Laws; and
also alleged that such omitted disclosure was intentional because (d) The Signature Sheet bore 128 signatures of those who attended
petitioner’s supervisors union was already affiliated with it. that meeting.
Petitioner also filed a petition to cancel the union’s registration Petitioner alleged that the misrepresentation was evidenced
certificate. The Med-Arbiter nevertheless granted HHE’s petition for by the discrepancy in the number of union members appearing in the
certification election. application and the list as well as the number of signatories to the
Petitioner appealed to the Secretary of Labor but it was denied as attendance and signature sheets. The minutes reported only 90
well as its motion for reconsideration, prompting petitioner to file a employees attended the meeting. Petitioner also alleged that 33
petition for certiorari with the Court of Appeals. The CA issued a writ members of PIGLAS were members of HHE, which is in violation of
of injunction against the holding of HHE’s certification election until the policy against dual unionism.
the petition for cancellation of its registration shall have been DOLE-NCR denied petitioner’s petition to cancel PIGLAS’
resolved with finality. registration because the discrepancies in the number of members in
the application’s supporting documents were not material and did signed the attendance sheet, it cannot be assumed that all those who
not constitute misrepresentation. The dual unionism is also not a attended approved of such. Any member had the right to hold out
ground for canceling registration, since the members of HHE simply and refrain from ratifying those documents or to simply ignore the
exercised their right to self-organization and freedom of association process. The Labor Code and its implementing rules do not require
when they joined PIGLAS. The Bureau of Labor Relations affirmed the that the number of members appearing on the documents in
DOLE-NCR, by reasoning that PIGLAS’ organization meeting lasted for question should completely dovetail. For as long as the documents
12 hours. Thus, it was possible for the number of attendees to have and signatures are shown to be genuine and regular and the
increased as the meeting progressed. Besides, the union only needed constitution and by-laws democratically ratified, the union is deemed
50 members of the total of 250 employees in the bargaining unit to to have complied with registration requirements.
comply with the 20% membership requirement. Petitioner filed a The discrepancy in the list of members (showing only 100
petition for certiorari with the Court of Appeals but it was denied as members) and the signature and attendance sheets (showing 127 or
well as petitioner’s motion for reconsideration. Hence, this petition 128 members) submitted is immaterial. A comparison of the
for review under Rule 45. documents shows that except for six members, the names found in
the list are also in the attendance and signature sheets. PIGLAS more
ISSUES: (1) Whether or not the union made fatal misrepresentation than complied with the 20% requirement since only 50 employees
in its application for union registration out of 250 employees in the bargaining unit were required to
(2) Whether or not dual unionism is a ground for canceling a union’s unionize.
registration. Labor laws are liberally construed in favor of labor especially
if doing so would affirm its constitutionally guaranteed right to self-
HELD: (1) NO. Petitioner has no evidence of the alleged organization. PIGLAS union’s supporting documents reveal the
misrepresentation. The discrepancies alone cannot be taken as unmistakable yearning of petitioner company’s rank and file
indication that PIGLAS misrepresented the information contained in employees to organize. This yearning should not be frustrated by
these documents. Charges of fraud and misrepresentation should be inconsequential technicalities.
clearly established by evidence and surrounding circumstances (2) NO. The right of any person to join an organization also includes
because once it is proved, the labor union acquires none of the rights the right to leave that organization and join another one. HHE union
accorded to registered organizations. ceased to exist, its certificate of registration being already cancelled.
The discrepancies can be explained. While it appears that in The Heritage Hotel Manila v NUWHRAIN-HHMSC
the minutes of the December 10, 2003 organizational meeting, only ACTS:
90 employees responded to the roll call at the beginning, it cannot be
assumed that such number could not grow to 128 as reflected on the The respondent’s petition for certification election was granted.
signature sheet for attendance. The meeting lasted 12 hours from Petitioner then discovered that respondent had failed to submit to
11:00am to 11:00pm. There is no evidence that the meeting hall was the Bureau of Labor Relations (BLR) its annual financial report for
locked up to exclude late attendees. As to the fact that only 127 several years and the list of its members since it filed its registration
members ratified the union’s constitution and by-laws when 128 papers in 1995. Consequently, it filed a Petition for Cancellation of
Registration of respondent, on the ground of the non-submission of right and privileges granted by law to a legitimate labor organization,
the said documents. Petitioner prayed that respondent’s Certificate particularly the right to participate in or ask for certification election
of Creation of Local/Chapter be cancelled and its name be deleted in a bargaining unit. Thus, the cancellation of a certificate of
from the list of legitimate labor organizations. It further requested registration is the equivalent of snuffing out the life of a labor
the suspension of the certification election proceedings. organization. For without such registration, it loses – as a rule – its
Nevertheless, the certification election pushed through and the rights under the Labor Code.
respondent won.

The Regional Director of DOLE-NCR and DOLE Secretary both held


that constitutionally guaranteed freedom of association and right of Furthermore, that the Labor Code’s provisions on cancellation of
workers to self-organization outweighed respondent’s union registration and on reportorial requirements have been
noncompliance with the statutory requirements to maintain its recently amended by Republic Act (R.A.) No. 9481, An Act
status as a legitimate labor organization. Strengthening the Workers’ Constitutional Right to Self-Organization,
Amending for the Purpose Presidential Decree No. 442, As Amended,
ISSUE: Otherwise Known as the Labor Code of the Philippines, which says
that failure to file financial reports and list of union members shall
Whether or not the failure to comply with the statutory not be a ground for cancellation of union registration but shall
requirement(filing financial reports and the list of its members) subject the erring officers or members to suspension, expulsion from
sufficient ground for the cancellation of registration of the membership, or any appropriate penalty.
respondent as a labor union.

HELD:

No, the non-compliance should not be a ground for the cancellation.


Articles 238 and 239 of the Labor Code provide that failure to file
financial reports and the list of its members are grounds for the
cancellation of Union Organization. However, consideration must be
taken of the fundamental rights guaranteed by Article XIII, Section 3
of the Constitution, i.e., the rights of all workers to self-organization,
collective bargaining and negotiations, and peaceful concerted
activities. Labor authorities should bear in mind that registration
confers upon a union the status of legitimacy and the concomitant

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