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Philippine Supreme Court Jurisprudence > Year 1989 > May 1989 Decisions > G.R. No. 77282 May 5, 1989
ASSOCIATEDLABORUNIONSv.PURAFERRERCALLEJA,ETAL.:
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SECONDDIVISION
[G.R.No.77282.May5,1989.]
ASSOCIATEDLABORUNIONS(ALU),Petitioner,v.HON.PURAFERRERCALLEJA,asDirector
oftheBureauofLaborRelations,MinistryofLaborandEmploymentPHILIPPINESOCIAL
SECURITYLABORUNION(PSSLU)SOUTHERNPHILIPPINESFEDERATIONOFLABOR(SPFL)
andGAWTRADING,INC.,Respondents.
RomeoS.Occea,LeonardU.Sawal,EdgemeloC.RosalesandErnestoCarreonfor
Petitioner.
HenrickF.GingoyonforrespondentSPFL.
WenifredoL.OrculloforrespondentSouthernPhilippinesFederationofLabor.
MiguelA.Enrique,Jr.forrespondentGAWTrading,Inc.
SYLLABUS
2. ID. ID. CERTIFICATION IS VOIDED FOR FAILURE TO SHOW UNION ENJOYED MAJORITY
REPRESENTATION. The unusual promptitude in the recognition of petitioner union by respondent
company as the exclusive bargaining representative of the workers in GAW Trading, Inc. under the
fluid and amorphous circumstances then obtaining, was decidedly unwarranted and improvident. It
bears mention that even in cases where it was the then Minister of Labor himself who directly
certifiedtheunionasthebargainingrepresentative,thisCourtvoidedsuchcertificationwherethere
was a failure to properly determine with legal certainty whether the union enjoyed a majority
representation. In such a case, the holding of a certification election at a proper time would not
necessarily be a mere formality as there was a compelling reason not to directly and unilaterally
certifyaunion.
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personswhoaresupposedtorepresentthemislimited.
4.ID.ID.ANNULMENTONGROUNDTHATCONTRACTWILLNOTPROMOTEINDUSTRIALSTABILITY.
Anotherpotentreasonforannullingthedisputedcollectivebargainingagreementisthefindingof
respondentdirectorthatonehundredeightyone(181)ofthetwohundredeightyone(281)workers
who"ratified"thesamenow"stronglyandvehementlydenyand/orrepudiatetheallegednegotiation
and ratification of the CBA." 10 Although petitioner claims that only seven (7) of the repudiating
groupofworkersbelongtothetotalnumberwhoallegedlyratifiedtheagreement,neverthelesssuch
unsubstantiated contention weighed against the factual findings of the respondent director cannot
negatethefactthatthecontrovertedcontractwillnotpromoteindustrialstability.
5. ID. ID. PROCEDURAL RULES NOT STRICTLY APPLIED IN LABOR CASES. At this juncture,
petitioner should be reminded that the technical rules of procedure do not strictly apply in the
adjudication of labor disputes. 12 Consequently, its objection that the evidence with respect to the
aforesaid repudiation of the supposed collective bargaining agreement cannot be considered for the
first time on appeal to the Bureau of Labor Relations should be disregarded, especially considering
theweightysignificancethereof.
6. ID. ID. CONTRACT BAR RULE: INAPPLICABLE WHERE PETITION FOR CERTIFICATION WAS
ALREADYPENDINGWHENDISPUTEDAGREEMENTWASFILED.Additionally,theinapplicabilityofthe
contract bar rule is further underscored by the fact that when the disputed agreement was filed
before the Labor Regional Office on May 27, 1986, a petition for certification election had already
been filed on May 19, 1986. Although the petition was not supported by the signatures of thirty
percent(30%)oftheworkersinthebargainingunit,thesamewasenoughtoinitiatesaidcertification
election.
DECISION
REGALADO,J.:
Petitioner Associated Labor Unions (ALU, for brevity) instituted this special civil action for certiorari
andprohibitiontooverturnthedecisionoftherespondentdirector1datedDecember10,1986,which
ordered the holding of a certification election among the rankandfile workers of the private
respondent GAW Trading, Inc. The averments in the basic petition therefor, which succinctly but
sufficientlydetailtherelevantfactualantecedentsofthisproceeding,justifytheirbeingquotedinfull,
thus:jg c : c h a n r o b le s .c o m.p h
"1.TheAssociatedLaborUnions(ALU)thruitsRegionalVicePresidentTeofanioC.Nunez,inaLetter
dated May 7, 1986 (ANNEX C) informed GAW Trading, Inc. that majority of the latters employees
have authorized ALU to be their sole and exclusive bargaining representative, and requested GAW
TradingInc.,inthesameLetterforaconferencefortheexecutionofaninitialCollectiveBargaining
Agreement(CBA)
"2. GAW Trading Inc. received the Letter of ALU aforesaid on the same day of May 7, 1986 as
acknowledged thereunder and responded (sic) ALU in a Letter dated May 12, 1986 (Annex D)
indicating its recognition of ALU as the sole and exclusive bargaining agent for the majority of its
employees and for which it set the time for conference and/or negotiation at 4:00 P.M. on May 12,
1986atthePillsburyOffice,AboitizBuilding,JuanLunaStreet,CebuCity
"3. On the following day of May 13, 1986, per Transmittal Letter on even date (ANNEX E) ALUs
ChairmanoftheNegotiatingPanelfurnishedGAWTradingInc.ten(10)finalcopiesoftheCollective
BargainingAgreementforComment,orotherwise,forsigning
"4.OnMay15,1986,ALUinbehalfofthemajorityoftheemployeesofGAWTradingInc.andGAW
TradingInc.signedandexecutedtheCollectiveBargainingAgreement(ANNEXF)....
May1989Jurisprudence
"5.Inthemeantime,atabout1:00P.M.ofMay9,1986,theSouthernPhilippinesFederationofLabor
G.R. No. 40062 May 3, 1989 MONTELIBANO
(SPFL)togetherwithNagkahiusangMamumuosaGAW(NAMGAW)undertooka...Strike...afterit
ESGUERRAv.COURTOFAPPEALS,ETAL.
failed to get the management of GAW Trading Inc. to sit for a conference respecting its demands
G.R. No. L36343 May 4, 1989 REPUBLIC OF THE presented at 11:00 A.M. on the same day in an effort to pressure GAW Trading Inc. to make a
PHIL.v.JULIANB.DELAROSA,ETAL. turnaboutofitsstandingrecognitionofALUasthesoleandexclusivebargainingrepresentativeofits
employees, as to which strike GAW Trading Inc. filed a petition for Restraining Order/Preliminary
G.R.No.47491May4,1989GALICANOGOLLOYv. Injunction,datedJune1,1986(AnnexU)andwhichstrikeLaborArbiterBonifacioB.Tumamakheld
COURTOFAPPEALS,ETAL. asillegalinaDecisiondatedAugust5,1986(ANNEXI)
G.R. No. 49677 May 4, 1989 TRADE UNIONS OF "6. On May 19, 1986, GAW Lumad Labor Union (GALLUPSSLU) Federation . . . filed a Certification
THE PHILIPPINES AND ALLIED SERVICES v. NATIONAL Electionpetition(ANNEXJ),but,asfoundbyMedArbiterCandidoM.Cumbainits(sic)Orderdated
HOUSINGCORPORATION,ETAL. June11,1986(ANNEXK),withouthavingcomplied(sic)thesubscriptionrequirementforwhichitwas
merely considered an intervenor until compliance thereof in the other petition for direct recognition
G.R. No. L55336 May 4, 1989 BENJAMIN
as bargaining agent filed on May 28, 1986 by Southern Philippines Federation of Labor (SPFL) as
VALLANGCA,ETAL.v.COURTOFAPPEALS,ETAL.
foundinthesameOrder(ANNEXK)
G.R. No. 76209 May 4, 1989 REPUBLIC OF THE
PHIL.v.COURTOFAPPEALS,ETAL. 7. In the meantime, the Collective Bargaining Agreement executed by ALU and GAW Trading Inc.
(ANNEXF)wasdulyfiledonMay27,1986withtheMinistryofLaborandEmploymentinRegionVII,
G.R.No.77686May4,1989PEOPLEOFTHEPHIL. CebuCity
v.SEDANALEGARBES,ETAL.
"8. Nevertheless, MedArbiter Candido M. Cumba in his Order of June 11, 1986 (Annex K) ruled for
G.R. No. 84895 May 4, 1989 REPUBLIC OF THE theholdingofacertificationelectioninallthebranchesofGAWTradingInc.inCebuCity,astowhich
PHIL.v.SANDIGANBAYAN,ETAL. ALU filed a Motion for Reconsideration dated June 19, 1986 (ANNEX L) which was treated as an
appealonthatquestionedOrderforwhichreasontheentirerecordofsubjectcertificationcasewas
G.R. No. L45127 May 5, 1989 PEOPLE OF THE
forwarded to the Director, Bureau of Labor Relations, Ministry of Labor and Employment, Manila
PHIL.v.AUXENCIOC.DACUYCUY,ETAL.
(ANNEXM)
G.R. No. L45656 May 5, 1989 PACIFIC BANKING
CORPORATION,ETAL.v.COURTOFAPPEALS,ETAL. "9. Bureau of Labor Relations Director Cresenciano B. Trajano, rendered a Decision on August 13,
1986(AnnexB)grantingALUsappeal(MotionforReconsideration)andsetasidethequestionedMed
G.R.No.62806May5,1989PEOPLEOFTHEPHIL. Arbiter Order of June 11, 1986 (Annex K, on the ground that the CBA has been effective and valid
v.DANILOISON andthecontractbarruleapplicable
G.R.Nos.6320809May5,1989CAMARASHOESv. "10.ButthesameDecisionofDirectorCresencianoB.Trajanowassoughtforreconsiderationbothby
KAPISANAN NG MGA MANGGAGAWA SA CAMARA SouthernPhilippinesFederationofLabor(SPFL)onAugust26,1986(ANNEXN)supplementedbythe
SHOES,ETAL. SUBMISSION OF ADDITIONAL EVIDENCE dated September 29, 1986 (ANNEX O), and Philippine
Social Security Labor Union (PSSLU) on October 2, 1986 (ANNEX P), which were opposed by both
G.R.No.70245May5,1989ELEUTERIODOMINGO
GAWTrading,Inc.onSeptember2,1986(ANNEXQ)andALUonSeptember12,1986(ANNEXR)"2
v.ALFREDOA.ROSERO,ETAL.
G.R.No.74453May5,1989AMBROCIOVENGCO, TheaforesaiddecisionofthenDirectorTrajanowasthereafterreversedbyrespondentdirectorinher
ETAL.v.CRESENCIOB.TRAJANO,ETAL. aforeciteddecisionwhichisnowassailedinthisaction.AmotionforreconsiderationofALU3appears
tohavebeendisregarded,hence,itspresentresortgroundedongraveabuseofdiscretionbypublic
G.R. Nos. 7589699 May 5, 1989 RENATO A. Respondent. c h a n r o b le s v ir t u a la wlib r a r y
VALDEZv.PEOPLEOFTHEPHIL.,ETAL.
Public respondent ordered the holding of a certification election, ruling that the "contract bar rule"
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G.R.No.76542May5,1989ANIANOMATABUENA relieduponbyherpredecessordoesnotapplyinthepresentcontroversy.Accordingtothedecision
v.COURTOFAPPEALS,ETAL. ofsaidrespondent,thecollectivebargainingagreementinvolvedhereinisdefectivebecauseit"was
notdulysubmittedinaccordancewithSectionI,RuleIX,BookVoftheImplementingRulesofBatas
G.R.No.77282May 5, 1989 ASSOCIATED LABOR PambansaBlg.130."Itwasfurtherobservedthat"(t)hereisnoprooftendingtoshowthattheCBA
UNIONSv.PURAFERRERCALLEJA,ETAL. hasbeenpostedinatleasttwoconspicuousplacesintheestablishmentatleastfivedaysbeforeits
ratificationandthatithasbeenratifiedbythemajorityoftheemployeesinthebargainingunit."
G.R. No. 78012 May 5, 1989 DELTA MOTORS
c r a la wv ir t u a 1 a wlib r a r y
CORPORATIONv.COURTOFAPPEALS,ETAL.
Wefindnoreversibleerrorinthechallengeddecisionofrespondentdirector.Acarefulconsideration
G.R.Nos.7887172May5,1989PACIFICCEMENT of the facts culled from the records of this case, especially the allegations of petitioner itself as
COMPANYINC.,ETAL.v.NATIONALLABORRELATIONS hereinabove quoted, yields the conclusion that the collective bargaining agreement in question is
COMMISSION,ETAL. indeeddefective,henceunproductiveofthelegaleffectsattributedtoitbytheformerdirectorinhis
decisionwhichwassubsequentlyandproperlyreversed.
G.R.No.82363May5,1989PEOPLEOFTHEPHIL.
v.ARMANDOM.SOLARES Wehavepreviouslyheldthatthemechanicsofcollectivebargainingaresetinmotiononlywhenthe
following jurisdictional preconditions are present, namely, (1) possession of the status of majority
G.R.No.82768May5,1989PEOPLEOFTHEPHIL. representation by the employees representative in accordance with any of the means of selection
v.ANECITOL.ESTEBAL
and/or designation provided for by the Labor Code (2) proof of majority representation and (3) a
demandtobargainunderArticle251,paragraph(a),oftheNewLaborCode.4Inthepresentcase,
A.C. No. 3091 May 5, 1989 ARSENIO REYES v.
DANTETINGA the standing of petitioner as an exclusive bargaining representative is dubious, to say the least. It
may be recalled that respondent company, in a letter dated May 12, 1986 and addressed to
G.R.No.L40464May9,1989POLICARPIOVISCA petitioner, merely indicated that it was "not against the desire of (its) workers" and required
v. SECRETARY OF AGRICULTURE AND NATURAL petitioner to present proof that it was supported by the majority thereof in a meeting to be held on
RESOURCES,ETAL. the same date. 5 The only express recognition of petitioner as said employees bargaining
representativethatWeseeintherecordsisinthecollectivebargainingagreemententeredintotwo
G.R.No.44588May 9, 1989 LAURA VELASCO, ET days thereafter. 6 Evidently, there was precipitate haste on the part of respondent company in
AL.v.SERGIOA.F.APOSTOL,ETAL. recognizingpetitionerunion,whichrecognitionappearstohavebeenbasedontheselfservingclaim
of the latter that it had the support of the majority of the employees in the bargaining unit.
G.R.No.61442May9,1989MODESTOA.MAHINAY Furthermore,atthetimeofthesupposedrecognition,theemployerwasobviouslyawarethatthere
v.SANDIGANBAYAN,ETAL.
wereotherunionsexistingintheunit.Asearlierstated,respondentcompanysletterisdatedMay12,
1986 while the two other unions, Southern Philippine Federation of Labor (hereafter, SPFL) and
G.R. No. L63971 May 9, 1989 PEOPLE OF THE
PHIL.v.RICARDOC.ELESTERIO
PhilippineSocialSecurityLaborUnion(PSSLU,forshort),wentonstrikeearlieronMay9,1986.The
unusual promptitude in the recognition of petitioner union by respondent company as the exclusive
G.R. No. 73854 May 9, 1989 JOSE P. DE LA bargaining representative of the workers in GAW Trading, Inc. under the fluid and amorphous
CONCEPCIONv.PEOPLEOFTHEPHIL.,ETAL. circumstancesthenobtaining,wasdecidedlyunwarrantedandimprovident.
A.M. No. P88241 May 9, 1989 LOURDES It bears mention that even in cases where it was the then Minister of Labor himself who directly
PADOLINAv.RUBENL.HENSON,ETAL. certifiedtheunionasthebargainingrepresentative,thisCourtvoidedsuchcertificationwherethere
was a failure to properly determine with legal certainty whether the union enjoyed a majority
G.R.No.54445May12,1989PEOPLEOFTHEPHIL. representation. In such a case, the holding of a certification election at a proper time would not
v.MARIONUNAG,ETAL. necessarily be a mere formality as there was a compelling reason not to directly and unilaterally
certifyaunion.7
G.R. No. L68385 May 12, 1989 ILDEFONSO O.
ELEGADOv.COURTOFTAXAPPEALS,ETAL.
An additional infirmity of the collective bargaining agreement involved was the failure to post the
G.R.No.74075May12,1989PEOPLEOFTHEPHIL. same in at least two (2) conspicuous places in the establishment at least five days before its
v.BERNABEMACASINAG ratification.8Petitionersrationalizationwasthat"(b)ecauseoftherealexistenceoftheillegalstrike
staged by SPFL in all the stores of GAW Trading, Inc. it had become impossible to comply with the
G.R. No. 74461 May 12, 1989 JUAN ASONG v. postingrequirementinsofarastherealizationofitspurposeisconcernedastherewerenoimpartial
INTERMEDIATEAPPELLATECOURT,ETAL. membersoftheunitwhocouldbeapprisedoftheCBAscontents."9Thisjustificationispuerileand
unacceptable.
c h a n r o b le s la wlib r a r y : r e d
G.R.No.77588May12,1989PEOPLEOFTHEPHIL.
v.JUNEC.SANCHEZ Inthefirstplace,thepostingofcopiesofthecollectivebargainingagreementistheresponsibilityof
theemployerwhichcaneasilycomplywiththerequirementthroughameremechanicalact.Thefact
G.R. No. 78277 May 12, 1989 SAN MIGUEL
thattherewere"noimpartialmembersoftheunit"isimmaterial.Thepurposeoftherequirementis
CORPORATION v. NATIONAL LABOR RELATIONS
precisely to inform the employees in the bargaining unit of the contents of said agreement so that
COMMISSION,ETAL.
they could intelligently decide whether to accept the same or not. The assembly of the members of
G.R. No. 81006 May 12, 1989 VICTORINO C. ALU wherein the agreement in question was allegedly explained does not cure the defect. The
FRANCISCOv.WINAIPERMSKUL,ETAL. contract is intended for all the employees and not only for the members of the purported
representative alone. It may even be said that the need to inform the nonmembers of the terms
G.R.No.82278May12,1989EMELINDASUNGA,ET thereofismoreexigentandcompellingsince,inalllikelihood,theircontactwiththepersonswhoare
AL. v. NATIONAL LABOR RELATIONS COMMISSION, ET supposed to represent them is limited. Moreover, to repeat, there was an apparent and suspicious
AL. hurry in the formulation and finalization of said collective bargaining accord. In the aforementioned
letter where respondent company required petitioner union to present proof of its support by the
G.R. No. 82506 May 12, 1989 CONSTRUCTION employees, the company already suggested that petitioner ALU at the same time submit the
SERVICESOFAUSTRALIAPHILIPPINES,INC.,ETAL.v. proposals that it intended to embody in the projected agreement. This was on May 12, 1986, and
AMADOP.PERALTA
promptlyonthefollowingdaythenegotiatingpanelfurnishedrespondentcompanyfinalcopiesofthe
desiredagreementwhich,withequaldispatch,wassignedonMay15,1986.
G.R. No. 83748 May 12, 1989 FLAVIO K.
MACASAET & ASSOCIATES, INC. v. COMMISSION ON
AUDIT,ETAL. Another potent reason for annulling the disputed collective bargaining agreement is the finding of
respondentdirectorthatonehundredeightyone(181)ofthetwohundredeightyone(281)workers
G.R.No.L33695May15,1989MANUFACTURERS who"ratified"thesamenow"stronglyandvehementlydenyand/orrepudiatetheallegednegotiation
BANK&TRUSTCO.v.DIVERSIFIEDINDUSTRIES,INC., and ratification of the CBA." 10 Although petitioner claims that only seven (7) of the repudiating
ETAL. groupofworkersbelongtothetotalnumberwhoallegedlyratifiedtheagreement,neverthelesssuch
unsubstantiated contention weighed against the factual findings of the respondent director cannot
G.R. No. L37165 May 15, 1989 PRIMITIVO negatethefactthatthecontrovertedcontractwillnotpromoteindustrialstability.TheCourthaslong
NEPOMUCENOv.BENJAMINSALAZAR sincedeclaredthat: jg c : c h a n r o b le s .c o m.p h
DELOSOv.SANDIGANBAYAN,ETAL.
BothpetitionerandprivaterespondentGAWTrading,Inc.allegethattheemployeesofthelatterare
A.M. No. 6484Ret May 15, 1989 IN RE: now enjoying the benefits of the collective bargaining agreement that both parties had forged.
RETIREMENTOFJUSTICERAMONB.BRITANICO However, We cannot find sufficient evidence of record to support this contention. The only evidence
citedbypetitioneristhesupposedpaymentofunionfeesbysaidemployees,apremisetootenuous
G.R. No. 76671 May17, 1989 SUSANA SALIDO v. to sustain the desired conclusion. Even the actual number of workers in the respondent company is
COURTOFAPPEALS,ETAL. notclearfromtherecords.Saidprivaterespondentclaimsthatitistwohundredeightyone(281)13
but petitioner suggests that it is more than that number. The said parties should be aware that this
G.R. No. 29759 May 18, 1989 NATIVIDAD DEL Court is not an adjudicator of facts. Worse, to borrow a trite but apt phrase, they would heap the
ROSARIOVDA.DEALBERTOv.COURTOFAPPEALS,ET OssaofconfusionuponthePelionofuncertaintyandstillexpectadefinitiverulingonthematterthus
AL. confounded.
G.R. No. L51333 May 18, 1989 RAMONA R.
Additionally, the inapplicability of the contract bar rule is further underscored by the fact that when
LOCSIN,ETAL.v.VICENTEP.VALENZUELA,ETAL.
the disputed agreement was filed before the Labor Regional Office on May 27, 1986, a petition for
certificationelectionhadalreadybeenfiledonMay19,1986.Althoughthepetitionwasnotsupported
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G.R. No. 70493 May 18, 1989 GLAN PEOPLES bythesignaturesofthirtypercent(30%)oftheworkersinthebargainingunit,thesamewasenough
LUMBER AND HARDWARE, ET AL. v. INTERMEDIATE toinitiatesaidcertificationelection.
APPELLATECOURT,ETAL.
WHEREFORE,theorderofthepublicrespondentfortheconductofacertificationelectionamongthe
G.R. No. 81314 May 18, 1989 EAGLE SECURITY
rankandfileworkersofrespondentGAWTradingInc.isAFFIRMED.Thetemporaryrestrainingorder
AGENCY, INC. v. NATIONAL LABOR RELATIONS
issuedinthiscasepursuanttotheResolutionofMarch25,1987isherebylifted.
COMMISSION,ETAL.
G.R.No.82318May18,1989GILBERTOM.DUAVIT SOORDERED.
v.COURTOFAPPEALS,ETAL.
MelencioHerrera,Paras,PadillaandSarmiento,JJ.,concur.
G.R. No. 84051 May 19, 1989 FRANCISCO
BERGADO,ETAL.v.COURTOFAPPEALS,ETAL.
Endnotes:
G.R.No.85815May19,1989ELENOT.REGIDOR,
JR.,ETAL.v.WILLIAMCHIONGBIAN,ETAL.
G.R.Nos.7429193May23,1989PEOPLEOFTHE 3.Ibid.,11AnnexS,Petition.
PHIL.v.OSCARLAMOSA,ETAL.
4.KiokLoyv.NationalLaborRelationsCommission,141SCRA179,185(1986).
G.R.Nos.7829094May23,1989NATALIAREALTY
CORPORATIONv.PROTACIORANCHUVALLEZ,ETAL. 5.Rollo,9,34AnnexD,Petition.
G.R. No. 81957 May 23, 1989 PHILIPPINE
6.Ibid.,37.
VETERANSBANKv.COURTOFAPPEALS,ETAL.
G.R.No.33166May29,1989A.D.GUERRERO,ET 10.Ibid.,27.
AL.v.MERCEDESP.JUNTILLA,ETAL.
11.FirestoneTire&RubberCompanyEmployeesUnion,etc.v.Estrella,etc.,Et.Al.81
G.R.No.67195May 29, 1989 HEIRS OF EUGENIA
SCRA49,54(1978).
V. ROXAS, INC., ET AL. v. INTERMEDIATE APPELLATE
COURT,ETAL.
12.Art.221,LaborCode,asamended.
G.R.No.76048May29,1989PEOPLEOFTHEPHIL.
v.BONIFACIOPIGON 13.Rollo,175176.
G.R.No.82007May30,1989FELIPERELUCIOIII, BacktoHome|BacktoMain
ETAL.v.CATALINOMACARAIG,JR.,ETAL.
G.R. Nos. 3283637 May 31, 1989 DANIEL
VICTORIO,ETAL.v.COURTOFAPPEALS,ETAL. QUICKSEARCH
G.R.Nos.L5097475May31,1989JUANCASTRO,
ETAL.v.COURTOFAPPEALS,ETAL.
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