By: Ma. Socorro U.

Marquez
Labor and Employment officer III

DOLE-Palawan Field Office

created by : cocoimarquez 05 October 2011 for Cooperatives in Palawan

 In

2002, there are 43 local manpower cooperatives registered as contractors and sub-contractors 2006, the number ballooned to 255 Self-Help Communitiesmembers as owners, users of activities/services.
created by : cocoimarquez 05 October 2011 for Cooperatives in Palawan

In

From

 The

Court upheld the Opinion which held that AN EMPLOYEE OF A COOPERATIVE WHO IS A MEMBER AND CO-OWNER THEREOF CANNOT INVOKE THE RIGHT TO COLLECTIVE BARGAINING. The Owner cannot bargain with himself or his co-owners. The employees of cooperatives who are not members co-owners are entitled to exercise the right to organize for purposes of collective bargaining.
created by : cocoimarquez 05 October 2011 for Cooperatives in Palawan

An employee-member has two distinct personalities fused into one: first, as an EMPLOYEE and second, as a MEMBERCO-OWNER. As a co-owner, is not entitled to the right to organize for the purpose of collective bargaining. (Cacdac, Hans Leo and Chato Rebecca on should D.O. No. 18-02 apply to manpower cooperatives? August 2006). In Batangas-I Electric Cooperative Labor Union vs Romeo Young; G.R. No. 62386;Bulacan II Electric Cooperative, Inc. vs Penaflor; G.R. No. 70880;Albay Electric Cooperative I vs Cresenciano B. Trajano; G.R. No. 74560; all dated 9 November 1988; San Jose City Electric Service Cooperative, Inc. known as SAJELCO vs Ministry of Labor and Employment; G.R. 77231; May 31, 1989), the Court affirmed this doctrine which involved common facts and issues on the cooperative member-employees right to organize for the purpose of collective bargaining. created by : cocoimarquez 05 October 2011 for Cooperatives in
Palawan

 CASE

FACTS: Credit Cooperative employees field a complaint for illegal dismissal with claims for premium pay on holidays and rest days, separation pay, and wage differential. ISSUE: Whether or not said member-co-owners are considered employees and thus covered by the Labor Standards law.
created by : cocoimarquez 05 October 2011 for Cooperatives in Palawan

 HELD

All these elements are present in the

case : (Four Fold Test), as follows: 1) Selection and Engagement of the worker or the power to hire; 2) The power to dismiss; 3)The payment of wages by whatever means; and 4)The power to control workers conduct. created by : cocoimarquez 05 October 2011 for Cooperatives in Control assumes primacy in the overall Palawan

 There

was no evidence presented to prove that complaints are members co-owners of the cooperative; and The complainants by virtue of their being employees are still covered by the Labor Code of the Philippines. They are entitled to the minimum wage, overtime pay, rest day, and due process before termination of employment.
created by : cocoimarquez 05 October 2011 for Cooperatives in Palawan

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sum, the Court considered membership and ownership in a cooperative as irrelevant to the case. The existence of an employeremployee relationship entitles one to the labor standards provided for under the Labor Code. This, is effect, sets aside the fused personality doctrine in cases involving labor standards compliance.
created by : cocoimarquez 05 October 2011 for Cooperatives in Palawan

 FACTS
A

OF THE CASE:

ISSUE:

shrimp processing company entered into a contract with a manpower cooperative to provide, among others, messengerial, janitorial, harvesting, sanitation, and washing services. Members of the cooperative were sent to perform said services to the company.

created : cocoimarquez 05 October Whether bymembers 2011 for Cooperatives in are regular Palawan

 HELD
The

contention of the shrimp processing company holds no basis . Using the substantial capital doctrine and right of control test , the Court found that the cooperative had no substantial capital in the form of tools, equipment, machineries, work premises and other materials to qualify created by : cocoimarquez 05 October 2011independent itself as an for Cooperatives in Palawan

 In

addition, the shrimp processing company was found to have control of the manner and method on how the work was done. Thus, the complainants were deemed employees not of the cooperative but of the shrimp processing company.
What the Court tried to impress in this case is

that labor laws find application so long as ee-er created by : cocoimarquez 05 October 2011 for Cooperatives in Palawan exists, relationship regardless of the