Paper Industries Corporation of the Philippines v

Laguesma
April 12, 2000| De Leon, Jr., J. | Topic: Excluded Employees Managerial
Petitioner: Paper Industries Corporation of the Philippines
Respondents:
Hon. Bienvenido Laguesma, USec of Labor
and Employment, Hon. Henry Pabel, Dir. Of DOLE Reg Office
No. XI and/or the Representation Officer of the Industrial
Relations Division, PCOP-BISLIG Supervisory and Technical
Staff Employees Union, Associated Labor Union and
Federation of Free Workers

FACTS:
Petitioner is engaged in the manufacture of paper and timber
products.
Has over 9000 employees, 944 of whom are
supervisory and technical staff employees. Around
487 of them are signatory members of PICOPBISLIG Supervisory and Technical Staff Employees
Union (PBSTSEU)
PBSTSEU instituted a Petition for Certification Election to
determine the sole and exclusive bargaining agent for CBA
purposes
The initial hearing of the petition was postponed. Meanwhile,
Federation of Free Workers (FFW) and Associated Labor
Union (ALU) filed their respective petitions for intervention
which was later granted by Med-Arbiter Arturo Gamolo.
Certification election among PICOPs supervisory and
technical staff employees in Surigao was held. The ballot
has 4 choices: (1) PBSTSEU; (2) FFW; (3) ALU; (4) no union.
PICOP objected to the inclusion of some section heads and
supervisors in the list of voters
Because of the reorganization, the positions were
reclassified as managerial employees
Section heads and supervisors, now called section
managers and unit managers head the sections and
independent units comprising each department.

These section managers and unit managers have

authority to hire and hire; as managerial employees,
they are ineligible to form or join any labor org
Med-Arbiter Phibun Pura issued an Order holding that
supervisors and section heads of the petitioner are
managerial employees and are excluded from the list of
voters for the certification election
Then USec Laguesma issued the Order declaring that the
subject employees are supervisory employees eligible to
vote in the certification election.
ISSUE: W/N subject supervisors and section heads are eligible
to vote during the certification election YES
PICOP: Section Heads and Supervisors, who have been
designated as Section Managers and Unit Managers were
converted to managerial employees under the
decentralization and reorganization program. They have the
authority to hire and fire employees, rendering them
ineligible for union membership under LC 245.
Ratio:
[United Pepsi-Cola Supervisory Union v Laguesma]
Managerial employees are ranked as Top, Middle, and First
Line Managers.
Top and Middle Managers have the authority to
devise, implement and control strategic and
operational policies
First Line Managers are tasked to ensure that such
policies are carried out by the rank and file
employees of an organization
Managerial employees then fall in two categories: Managers
per se who are Top and Middle Managers; and Supervisors
composed of First-Line Managers. Designation of manager
does not ipso facto make him one, it should be reconciled
with the actual job description which determines the nature
of employment.

The concerned supervisory employees and section heads are

not actually managerial but only supervisory employees. The
alleged authority to hire and fire is not supreme but merely
advisory. Any action taken by them on matters relative to
hiring, promotion, transfer, suspension and termination of

employees is still subject to confirmation and approval of

their superior.