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On February 8,
CALTEX FILIPINO MANAGER AND SUPERVISORS ASSOCIATION vs 1965 the Association sent a set of proposals to the Company wherein one of the
COURT OF INDUSTRIAL RELATIONS, et.al demands was the recognition of the Association as the duly authorized bargaining
agency for managers and supervisors in the Company. To this the Company
G.R. Nos. L-30632-33 countered stating that a distinction exists between representatives of management
April 11, 1972 and individuals employed as supervisors and that it is Company's belief that
Ponente: Villamor, J
managerial employees are not qualified for membership in a labor organization;
hence, it is digested that the Association institute a certification proceeding so as
to remove any question with regard to position titles that should be included in the
NATURE OF CASE
bargaining unit. The Association felt disinclined to follow the suggestion of the
Appeal from the Resolution en Banc of the CIR
Company1 and so on February 22, 1965 the Company initiated a certification
BRIEF proceeding docketed as Case 1484-MC.
This is an appeal by the Caltex Filipino Managers and Supervisors' Association On March 8, 1965 the Association filed notice to strike.
from the resolution en banc dated May 16, 1969 of the Court of Industrial
Relations (CIR) affirming the decision dated February 26, 1969 of Associate On the basis of the strike notice filed on March 8, 1965 and in view of acts
Judge Emiliano C. Tabigne, Associate Judge Ansberto P. Paredes dissented from committed by the Company which the Association considered as constituting
the resolution of the majority on the ground that the Industrial Court in a unfair labor practice, the Association struck on April 22, 1965, after the efforts
representation case cannot take cognizance of the issue of illegality of a strike and exerted by the Bureau of Labor Relations to settle the differences between the
proceed to declare the loss of the employee status of employees inasmuch as that parties failed.
matter ought to be processed as an unfair labor practice case. Judge Tabigne's
decision covers two cases, namely, Case No. 1484-MC (1) in which he declared Because of the settlement between the parties on May 30, 1965 of some of their
the strike staged on April 22, 1965 by the Association as illegal with the disputes, the Association filed with respondent court under date of June 3, 1965 a
consequent forfeiture of the employee status of three employees (Jose J. Mapa, manifestation (to which was attached a copy of the return-to-work agreement
President of the Association; Dominador Mangalino, Vice-President and signed by the parties on May 30, 1965), to the effect that the issues in Case No.
Herminigildo Mandanas) and Case No. 4344-ULP against Caltex (Philippines), 1484-MC (1) had become moot and academic.
Inc., Ben F. Edwards W.E. Menefee which Judge Tabigne dismissed for lack of
merit and substantial evidence.
ISSUE of the CASE
FACTS Whether or not the strike staged by the Association on April 22, 1965 is illegal?
NATURE OF CASE
Petition for Certiorari
BRIEF
This is a petition for certiorari assailing the order of Med-Arbiter Designate Felix
B. Chaguile, Jr., the resolution of then Labor Secretary Franklin M. Drilonaffirming
said order on appeal and the order denying the motion for reconsideration in the case
entitled "In Re: Petition for Direct Certification as the Sole and Exclusive Collective
Bargaining Agent of Collectors of Singer Sewing Machine Company-Singer Machine
Collectors Union-Baguio (SIMACUB)" docketed as OS-MA-A-7-119-89 (IRD Case
No. 02-89 MED).
FACTS
On February 15, 1989, the respondent union filed a petition for direct certification as
the sole and exclusive bargaining agent of all collectors of the Singer Sewing Machine
Company, Baguio City branch (hereinafter referred to as "the Company").
The Company opposed the petition mainly on the ground that the union members are
actually not employees but are independent contractors as evidenced by the collection
agency agreement which they signed.
The respondent Med-Arbiter, finding that there exists an employer-employee used for the purpose of avoiding a co-mingling of personal funds of the agent with the
relationship between the union members and the Company, granted the petition for money collected on behalf of the Company. Likewise, the use of standard report forms
certification election. as well as the regular time within which to submit a report of collection are intended to
The respondents insist that the provisions of the Collection Agency Agreement belie facilitate order in office procedures. Even if the report requirements are to be called
the Company's position that the union members are independent contractors. To prove control measures, any control is only with respect to the end result of the collection
that union members are employees, it is asserted that they "perform the most desirable since the requirements regulate the things to be done after the performance of the
and necessary activities for the continuous and effective operations of the business of collection job or the rendition of the service.
the petitioner Company" (citing Article 280 of the Labor Code). They add that the The monthly collection quota is a normal requirement found in similar contractual
termination of the agreement by the petitioner pending the resolution of the case agreements and is so stipulated to encourage a collecting agent to report at least the
before the DOLE "only shows the weakness of petitioner's stand" and was "for the minimum amount of proceeds. In fact, paragraph 5, section b gives a bonus, aside
purpose of frustrating the constitutionally mandated rights of the members of private from the regular commission every time the quota is reached. As a requirement for the
respondent union to self-organization and collective organization." They also contend fulfillment of the contract, it is subject to agreement by both parties. Hence, if the
that under Section 8, Rule 8, Book No. III of the Omnibus Rules Implementing the other contracting party does not accede to it, he can choose not to sign it. From the
Labor Code, which defines job-contracting, they cannot legally qualify as independent records, it is clear that the Company and each collecting agent intended that the former
contractors who must be free from control of the alleged employer, who carry take control only over the amount of collection, which is a result of the job performed.
independent businesses and who have substantial capital or investment in the form of The Court finds that since private respondents are not employees of the Company, they
equipment, tools, and the like necessary in the conduct of the business. are not entitled to the constitutional right to join or form a labor organization for
purposes of collective bargaining. Accordingly, there is no constitutional and legal
ISSUE/s OF THE CASE basis for their "union" to be granted their petition for direct certification.
Whether or not petitioners are entitled to right to self-organization? SUPREME COURT RULING
COURT RATIONALE OF THE ABOVE CASE WHEREFORE, the Order dated June 14,1989 of Med-Arbiter Designate Felix
B. Chaguile, Jr., the Resolution and Order of Secretary Franklin M. Drilondated
The present case mainly calls for the application of the control test, which if not November 2, 1989 and December 14, 1989, respectively are hereby REVERSED and
satisfied, would lead us to conclude that no employer-employee relationship exists. SET ASIDE. The petition for certification election is ordered dismissed and the
Hence, if the union members are not employees, no right to organize for purposes of temporary restraining order issued by the Court on December 21, 1989 is made
bargaining, nor to be certified as such bargaining agent can ever be recognized. The permanent.
following elements are generally considered in the determination of the employer-
employee relationship; "(1) the selection and engagement of the employee; (2) the
payment of wages; (3) the power of dismissal; and (4) the power to control the
employee's conduct — although the latter is the most important element"
(Mafinco Trading Corporation v. Ople, 70 SCRA 139 [1976]; Development Bank of
the Philippines v. National Labor Relations Commission, 175 SCRA 537 [1989];
Rosario Brothers, Inc. v. Ople, 131 SCRA 72 [1984]; Broadway Motors Inc. v. NLRC,
156 SCRA 522 [1987]; Brotherhood Labor Unity Movement in the Philippines v.
Zamora, 147 SCRA 49 [1986]).
The requirement that collection agents utilize only receipt forms and report forms
issued by the Company and that reports shall be submitted at least once a week is not
necessarily an indication of control over the means by which the job of collection is to
be performed. The agreement itself specifically explains that receipt forms shall be
FACTS
The “CHALLENGED” votes of 141 INK members were segregated and excluded
from the final count in virtue of an agreement between the competing unions,
reached at the pre-election conference, that the INK members should not be
allowed to vote "because they are not members of any union and refused to
participate in the previous certification elections.
RIGHT TO SELF-ORGANIZATION – Extent and Scope of Right
INK members filed a petition to cancel the election alleging that it "was not fair"
ALEXANDER REYES, ALBERTO M. NERA, EDGARDO M. GECA, and
and the result thereof did "not reflect the true sentiments of the majority of the
138 others,
employees.
vs
CRESENCIANO B. TRAJANO, as Officer-in-Charge, Bureau of Labor
Med-Arbiter saw no merit on the petition because INK members do not possess
Relations, Med. Arbiter PATERNO
any legal personality to institute this present cause of action since they were not
ADAP, and TRI-UNION EMPLOYEES UNION, Et. Al.
parties to the petition for certification election. INK members appealed to Bureau
of Labor Relations.
G.R. No. 84433
June 02, 1992
Bureau of Labor Relations sustained the decision of Med-Arbiter. Hence, this
Ponente: Narvasa, C.J.
case.
Article 248 (a) declares it to be an unfair labor practice for an employer, among
others, to "interfere with, restrain or coerce employees in the exercise of their right
to self-organization.
Article 249 (a) makes it an unfair labor practice for a labor organization to
"restrain or coerce employees in the exercise of their rights to self-organization.
Neither law, administrative rule nor jurisprudence requires that only employees
affiliated with any labor organization may take part in a certification election. On
the contrary, the plainly discernible intendment of the law is to grant the right
to vote to all bona fide employees in the bargaining unit, whether they are
members of a labor organization or not.
The right NOT to join, affiliate with, or assist any union, and to disaffiliate or
resign from a labor organization, is subsumed in the right to join, affiliate
with, or assist any union, and to maintain membership therein. The right to
form or join a labor organization necessarily includes the right to refuse or refrain
from exercising said right. It is self-evident that just as no one should be denied
the exercise of a right granted by law, so also, no one should be compelled to
exercise such a conferred right.
Considering that (a) the TUPAS solicited certification election was strictly
Let, therefore, the certification election proceed without delay, with the following
as choices:chanrob1es virtual 1aw library confined to the rank-and-file employees who are paid on a daily or piece-rate
basis, (b) the results of the election must also necessarily confine the certified
1. Knitjoy Monthly Employees Union (KMEU); and union’s representation to the group it represents and (c) the issue of the plight of
the monthly-paid employees was still pending, KNITJOY and CFW clearly acted
2. No Union. with palpable bad faith and malice in including within the scope of the new CBA
these monthly-paid employees. Thus was effected a conspiracy to defeat and
suppress the right of the KMEU and its members to bargain collectively and
ISSUE of the CASE negotiate for themselves, to impose upon the latter a contract the negotiation for
which they were not even given notice of, consulted or allowed to participate in,
Whether the petitioner KNITJOY’s monthly-paid regular rank-and-file employees and to oust from the BLR the pending appeal on the certification issue. In the
can constitute an appropriate bargaining unit separate and distinct from the latter case, KNITJOY and CFW are guilty of contumacious conduct. It goes
existing unit composed of daily or piece-rate paid regular rank-and-file without saying then that the new CBA cannot validly include in its scope or
employees.
coverage the monthly-paid rank-and-file employees of KNITJOY. It does not bar
the holding of a certification election to determine their sole bargaining agent, and
COURT RATIONALE ON THE ABOVE CASE the negotiation for and the execution of a subsequent CBA between KNITJOY
and the eventual winner in said election. Section 4, Rule V, Book V of the Rules
No. Implementing the Labor Code expressly provides
The suggested bias of the Labor Code in favor of the one company-one union SUPREME COURT RULING
policy, anchored on the greater mutual benefits which the parties could derive, WHEREFORE, the instant petitions are DISMISSED. However, the challenged
especially in the case of employees whose bargaining strength could undeniably decision of public respondent of 1 December 1987 is modified to include in the
be enhanced by their unity and solidarity but diminished by their disunity, division choices for the certification election petitioner Confederation of Filipino Workers
and dissension, is not without exceptions.
(CFW) and the Knitjoy Monthly Employees Association and Confederation of
Citizens Labor Unions (KMEU-CCLU).