Benguet Electric Cooperative, Inc.

vs

Hon. Pura Ferrer-Calleja, and BENECO Employees Labor Union

G.R. No. 79025 Dec. 29, 1989

Facts:

Beneco Worker’s Labor Union-Association of Democratic Labor Organizations (BWLU-ADLO)

filed a petition for direct certification as the sole and exclusive bargaining representative of all
rank and file employees of Benguet Electric Cooperative, Inc.(BENECO).

The petition was opposed by the Beneco Employees Labor Union(BELU) claiming that it was
certified as the sole and exclusive bargaining representative of the subject workers pursuant to an
order issued by the med-arbiter in 1980; that there are 2 cases pending filed against BENECO;
and that the pendency of these cases barred any representation question.

BENECO filed a motion to dismiss the petition contending that as a non-profit electric
cooperative, the employees sought to be represented by BWLU-ADLO were not eligible to form,
join or assist labor organizations since they are members and joint owners of the cooperative.

The med-arbiter issued an order giving due course to the petition for certification, limiting the
election, however, among the rank and file employees who are non-members and without
involvement in the actual ownership of the cooperative. The med-arbiter also found that there are
only 37 members who are not members and without any involvement in the actual ownership of
the cooperative.

BELU and BENECO appealed from this order but was dismissed for lack of merit. BENECO
also filed a petition for certiorari which was likewise dismissed.

On Oct. 1, 1986, the certification election was held. Canvass of the votes showed that BELU
garnered 49 of the 83 “valid” votes cast.

BENECO formalized its verbal manifestation, wherein they protested the fact that member-
consumers were allowed to vote even though they were not eligible to be members if any labor
union for purposes of collective bargaining, by filing a Protest. Said protest was dismissed by the
med arbiter, and the order was affirmed by Bureau of Labor Relations director Pura Ferrer-
Calleja and even certified BELU as the sole and exclusive bargaining agent of all rank and file
employees of BENECO.

These then led BENECO to file this petition for certiorari.

Issue: Whether or not the certification election is valid?

Held:

No. Art. 256 (now 268) of the Labor Code provides that: “To have a valid, election, at least a
majority of all eligible voters in the unit must have cast their votes. The labor union receiving the
majority of the valid votes cast shall be certified as the exclusive bargaining agent of all workers
in the unit . . .”

In the order issued by med-arbiter Elnora Balleras, she made a specific finding that there are only
37 employees of BENECO who are not members of the cooperative and who are the only
employees eligible to form or join a labor union for purposes of collective bargaining.

However, the minutes of the certification election show that a total of 83 employees were
allowed to vote. Even those not eligible were allowed to vote. In this case, it cannot be
determined whether or not BELU was duly elected by the eligible voters of the bargaining unit
since even employees who are ineligible to join labor union within the cooperative because of
their membership therein were allowed to vote in the certification election.