Takata Corp. v.

BLR and SALAMAT

June 4, 2014
TOPIC IN SYLLABUS: Cancellation of Union Certificate Registration - Grounds

G.R. No. 196276

Peralta, J.

SUMMARY: Takata Corp. filed with DOLE to cancel the certificate of union registration of SALAMAT
(Union) due to their misrepresentation, false statements, and fraud. Takata claims that only 68 of the 119
members attended the organizational meeting; less than 20% of 369 employees.
SC held that 20% requirement does not apply to Art 234 (b) or to those who joined the org. meeting. 20%
only applies to 234 (c) or all employees in the bargaining unit. The Pangalan ng mga Kasapi ng Unyon
showed 119 names; more than 20% of 396. No proof that members did not understand what they were
signing. The two repeated names is not a valid ground for cancellation because they do not constitute grave
misrepresentation.
FACTS:
July 7, 2009 Takata Corp filed with DOLE a petition for cancellation of Certificate of Union
Registration of respondent SALAMAT (Union)
They alleged that SALAMAT was guilty of misrepresentation, false statements, and fraud with
respect to the number of those who participated in their organizational meeting, the adoption
and ratification of its Constitution and by-laws, and in the election of its officers.
Takatas contentions
o In the May 1, 2009 organizational meeting, only 68 signed the attendance sheet out of 396
rank-and-file employees.1
o Pangalan ng mga Kasapi ng Unyon (PKU) bore no signatures of the 119 members and
that the employees were not given sufficient information on the document they signed.
o The document Sama-Samang Pahayag ng Pagsapi (SPP) was not submitted at the time of
application for union registration
o 119 members were only 117
o total number of employees as of May 1, 2009 was 470, not 396.
DOLE
DOLE Director Atty. Ricardo Martinez granted petition for cancellation
68 is less than 20% of 396 hence, short of union registration requirement
The attendance sheet containing the names and signatures of 68 members contradicted list of names
in the PKU
SPP was not attached to the application for registration; only submitted in the petition for
certification election
*Bukluran ng Manggagawang Pilipino (BMP) Paralegal Officer Domingo Mole filed an appeal on behalf of
SALAMAT to BLR. Later, the counsel of SALAMAT filed own appeal w/ BLR.
Takata opposed on ground of forum shopping.
Bureau of Labor Relations:
Reversed DOLE Director
Takata failed to prove the deliberate and malicious misrepresentation of number of r-a-f employees
List of employees who participated in the organizational meeting is a separate and disctinct
requirement from list of names comprising at least 20% of employees in the bargaining unit
No evidence that employees assailed their inclusion in the list of union members
ISSUES:

68 is only 17% of 396

Lopez, Catherine Nicole

CASE #32

W/N SALAMAT committed misrepresentation, false statements, or fraud as a ground for

cancelling their registration? NO
W/N SALAMAT is guilty of forum shopping? - NO

HELD:

It does not appear in Art 2342 (b) that attendees in the organizational meeting must compirse at least
20% of the bargaining unit
Only in Art 234 (c) that requires the names of all its members comprising at least twenty percent
(20%) of all the employees in the bargaining unit where it seeks to operate. Clearly, the 20%
minimum requirement pertains to the employees membership in the union and not to the list of
workers who participated in the organizational meeting.
(b) and (c) provide for separate requirements.
Total number of employees was 396: 20% of which is about 79. The 119 member who signed the
PKU sufficiently complied with the 20% requirement.
The 68 members who attended the org meeting was enough to constitute a quorum to validly ratify
their Constitution and its by-laws of the union.
For fraud and misrepresentation to be a grounds for cancellation under Art 2393, nature must be
grave and compelling enough to vitiate consent of a mojority of union members
No proof as to the lack of information given to those who signed PKU. No member came forward
to deny their membership in SALAMAT. Signing the SPP show their strengthening of desire to joing
union.
The two repeated names cannot be considered misrepresentation absent any showing that
SALAMAT did so deliberately to increase union membership.
Even if the employees were 470, instead of 396, 117 (without two repeated names) is still more than
20%

Re: Atty Mole

BMP officer Mole no longer authorzed to file appeal on behalf of Union because his services were
already terminated at that time. Such appeal considered not to have been filed at all. Hence, no forum
shopping.

2ART.

234. Requirements of Registration. - A federation, national union or industry or trade union center or an independent union
shall acquire legal personality and shall be entitled to the rights and privileges granted by law to legitimate labor organizations upon
issuance of the certificate of registration based on the following requirements:
(a) Fifty pesos (P50.00) registration fee;
(b) The names of its officers, their addresses, the principal address of the labor organization, the minutes of the organizational
meetings and the list of the workers who participated in such meetings;
(c) In case the applicant is an independent union, the names of all its members comprising at least twenty percent (20%) of all the
employees in the bargaining unit where it seeks to operate;
(d) If the applicant union has been in existence for one or more years, copies of its annual financial reports; and
(e) Four copies of the constitution and by-laws of the applicant union, minutes of its adoption or ratification, and the list of the
members who participated in it."
3 ART. 239. Grounds for Cancellation of Union Registration. - The following may constitute grounds for cancellation of union
registration:
(a) Misrepresentation, false statement or fraud in connection with the adoption or ratification of the constitution and by-laws or
amendments thereto, the minutes of ratification, and the list of members who took part in the ratification;
(b) Misrepresentation, false statements or fraud in connection with the election of officers, minutes of the election of officers, and the
list of voters;
xx
Lopez, Catherine Nicole

CASE #32