CASE DIGEST: LOPEZ SUGAR CORPORATION v. Sec. of Labor [NACUSIP and CAILO]

LOPEZ SUGAR CORPORATION

VS

Sec. of Labor

[NACUSIP and CAILO]

247 SCRA 1

[August 1995]

Facts

-The Med-Arbiter, sustained by the Secretary of Labor and Employment, has ruled that Art. 257 is mandatory and give him no other choice than to conduct a certification election upon the receipt of the corresponding petition.

“Art. 257. Petitions in unorganized establishments. -In any establishment where there is no certified bargaining agent, a certification election shall automatically be conducted by the Med-Arbiter upon the filing of a petition by a legitimate labor organization.”

-National Congress of Unions in the Sugar Industry of the Philippines-TUCP (“NACUSIP-TUCP”) filed with the Department of Labor and Employment (“DOLE”) a petition for direct certification or for certification election to determine the sole and exclusive collective bargaining representative of the supervisory employees of herein petitioner, Lopez Sugar Corporation (“LSC”). NACUSIP-TUCP averred that it was a legitimate national labor organization; that LSC was employing 55 supervisory employees, the majority of whom were members of the union; that no other labor organization was claiming membership over the supervisory employees; that there was no existing collective bargaining agreement covering said employees; and that there was no

legal impediment either to a direct certification of NACUSIP-TUCP or to the holding of a certification election.

-LSC contended it. NACUSIP-TUCP submitted Charter Certificate No. 003-89, dated 20 July 1989, of the NACUSIP-TUCP Lopez Sugar Central Supervisory Chapter.

-LSC appealed to the DOLE and asseverated that the order was a patent nullity and that the Med-Arbiter acted with grave abuse of discretion, Sec. of Labor denied it. Petition for certiorari was filed.

Issue

WON the certification election should push through

Held

No, because the labor organization is not legitimate. It was held in Progressive Development Corporation vs. Secretary, Department of Labor and Employment:

“But while Article 257 cited by the Solicitor General directs the automatic conduct of a certification election in an unorganized establishment, it also requires that the petition for certification election must be filed by a legitimate labor organization. Article 212(h) defines a legitimate labor organization as ‘any labor organization duly registered with the DOLE and includes any branch or local thereof.’ Rule 1, Section 1(j), Book V of the Implementing Rules likewise defines a legitimate labor organization as ‘any labor organization duly registered with the DOLE and includes any branch, local or affiliate thereof .’ “

Indeed, the law did not reduce the Med-Arbiter to an automaton which can instantly be set to impulse by the mere filing of a petition for certification election. He is still tasked to satisfyhimself that all the conditions of the law are met, and amongthe legal requirements is that the petitioning union must be legitimate labor organization in good standing.

The petition for certification election, in the case at bench, was filed by the NACUSIP-TUCP, a national labor organization duly registered with the DOLE. The legitimate status of NACUSIPTUCP might be conceded; being merely, however, an agent for the local organization (the NACUSIP-TUCP Lopez Sugar Central Supervisory Chapter), the federation’s bona fide status alone would not suffice. The local chapter, as its principal, shouldalso be a legitimate labor organization in good standing.

Accordingly, in Progressive Development, we elucidated: “In the case of union affiliation with a federation, the documentary requirements are found in Rule II, Section 3(e), Book V of the Implementing Rules, which we again quote as follows:

“‘(c ) The local or chapter of a labor federation or national union shall have and maintain a constitution and by laws, set of officers and books of accounts. For reporting purposes, the procedure governing the reporting of independently registered unions, federations or national unions shall be observed.’ “Since the ‘procedure governing the reporting independently registered unions’ refers to the certification and attestation requirements contained in Article 235, paragraph 2, it follows that the constitution and by-laws, set of officers and books of accounts submitted by the local and chapter must likewise comply with these requirements. The same rationale for requiring the submission of duly subscribed documents upon union registration exists in the case of union affiliation. Moreover, there is greater reason to exact compliance with the certification and attestation requirements because, as previously mentioned, several requirements applicable to independent union registration are no longer required in the case of the formation a local or chapter. The policy of the law in conferring greater bargaining power upon labor unions must be balanced with the policy of providing preventive measures against the commission of fraud.

“A local or chapter therefore becomes a legitimate labor organization only upon submission of the following to theBLR:

“1) A charter certificate, within 30 days from its issuance by the labor federation or national union, and

“2) The constitution and by-laws, a statement on the set of officers, and the books of accounts all of which are certified under oath by the secretary or treasurer, as the case may be, of such local or chapter, and attested to by its president.

“Absent compliance with these mandatory requirements, the local or chapter does not become legitimate labor organization.”

The only document extant on record to establish the legitimacy of the NACUSIP-TUCP Lopez Sugar Central Supervisory Chapter is a charter certificate and nothing else.

Disposition

WHEREFORE, the assailed Decision of the Secretary of Labor, dated 06 March 1990, affirming that of the Med-Arbiter, is ANNULLED and SET ASIDE. The petition for certification election is dismissed. No costs.