PAFLU vs.

Bureau of Labor Relations

Fernando, Acting C.J. (August 21, 1976)

Facts:

On February 27, 1976, Philippine Blooming Mills Company, Inc. held a certification election on
who would be the exclusive bargaining agent of all its employees. The National Federation of Free Labor
Unions (NAFLU) won, with 429 votes as against the 419 votes of the Philippine Association of Free Labor
Unions (PAFLU). 4 votes were cast wherein no union was preferred. The Director of Labor Relations,
Carmelo Noriel, then certified NAFLU as the exclusive bargaining agent of Philippine Blooming Mills
Company, Inc.’s employees.

Despite winning by a majority, which is what is required under the Rules and Regulations
implementing the Labor Code, to be the sole and exclusive bargaining agent, PAFLU sought to invoke the
doctrine in Allied Workers Association of the Philippines vs. Court of Industrial Relations, wherein spoiled
ballots should be counted in determining the valid votes cast. As there were 17 spoiled ballots, PAFLU
argued that there was grave abuse of discretion by Director Noriel in certifying NAFLU.

Issue: Whether or not the doctrine in Allied Workers Association of the Philippines vs. Court of Industrial
Relations should be applied in this case?

Held: No, it should not.

Ratio:

First off, only 10 of the spoiled ballots were for PAFLU, so even if they were all counted, PAFLU
would still lose with 424 votes to 429 for NAFLU.

The essence of the certification process is to give every labor organization the opportunity in a
free and honest election to be the exclusive CBA of employees. PAFLU was given a fair election, and lost.
In the US, it is also the rule that only a majority of all valid ballots will be needed to win the election.

As the country is on a wide-scale industrialization project, a stable structure of law and order in
the productive sector is needed, that need it best attained through a collective bargaining regime.
Requiring an absolute majority to be obtained by the valid CBA would unnecessarily protract the process
and frustrate the goal looked to.

No fault of a grave or serious character can be imputed to Director Noriel as the case of Allied
Workers Association of the Philippines vs. Court of Industrial Relations was promulgated under the
Industrial Peace Act. The Labor Code superseded the Industrial Peace Act, and the present relative
majority rule should be first proved to be in repugnant to the Labor Code, which was not done.

High repute must also be given to the contemporaneous construction placed by the executive
officials entrusted with applying the statute. The Rules and Regulations implementing the Labor Code
were issued by Secretary Ople of the Department of Labor and took effect in 1975, the Labor Code
taking effect in 1974. There was more than enough time for a serious study of such regulations to avoid
any inconsistency with the Labor Code.