BARGAINING UNIT

1st DIVISION STA. LUCIA EAST COMMERCIAL CORP., VS. SECRETARY OF LABOR AND EMPLOYMENT etc. GR162355 AUGUST 14, 2009 G.R. No. 162355 CARPIO, J.: petition for review

1. Legitimate Labor Organization: Article 212(g) of the Labor Code defines a labor organization as
“any union or association of employees which exists in whole or in part for the purpose of collective bargaining or of dealing with employers concerning terms and conditions of employment.”

The DOLE Regional Office of Bureau of Labor Relations issues the applicant labor organization who complies with all the statutory requirements a Certificate that it is included in the roster of legitimate labor organizations. The union's legal personality vests upon the issuance of the certificate of registration, and entitles it to the rights and privileges granted by law to legitimate labor organizations.

2. Bargaining Unit : The concepts of a union and of a legitimate labor organization are different from, but related to, the concept of a bargaining unit. In San Miguel Corporation v. Laguesma,the COurt said:

A bargaining unit is a “group of employees of a given employer, comprised of all or less than all of the entire body of employees, consistent with equity to the employer, indicated to be the best suited to serve the reciprocal rights and duties of the parties under the collective bargaining provisions of the law.”

The following factors determine the appropriateness of a collective bargaining unit:
(1) the will of the employees (Globe Doctrine);
(2) affinity and unity of the employees’ interest, such as substantial similarity of work and duties, or similarity of compensation and working conditions (Substantial Mutual Interests Rule);
(3) prior collective bargaining history: note that the COurt has consistently held that this factor is not decisive or conclusive in determining an appropriate bargaining unit ; and
(4) similarity of employment status.

However, employees in two corporations cannot be treated as a single bargaining unit even if the businesses of the two corporations are related.[9]

3. A Legitimate Labor Organization Representing An Inappropriate Bargaining Unit: CLUP-SLECC and its Affiliates Workers Union’s initial problem was that they constituted a legitimate labor organization representing a non-appropriate bargaining unit. However, it subsequently re-registered as CLUP-SLECCWA, limiting its members to the rank-and-file of SLECC. SLECC cannot ignore that CLUP-SLECC and its Affiliates Workers Union was a legitimate labor organization at the time of SLECC’s voluntary recognition of SMSLEC. SLECC and SMSLEC cannot, by themselves, decide whether CLUP-SLECC and its Affiliates Workers Union represented an appropriate bargaining unit.

4. The inclusion in the union of disqualified employees is not a grounds for cancellation of registration, unless such inclusion is due to misrepresentation, false statement or fraud under the enumerations in Sections (a) to (c) of Article 239 of the Labor Code. CLUP-SLECC and its Affiliates Workers Union, having been validly issued a certificate of registration, have acquired juridical personality which may not be attacked collaterally. The proper procedure for SLECC is to file a petition for cancellation of certificate of registration of CLUP-SLECC and its Affiliates Workers Union. But it cannot immediately commence voluntary recognition proceedings with SMSLEC.

5. SLECC’s Voluntary Recognition of SMSLEC: The employer may voluntarily recognize the representation status of a union only in an unorganized establishment.CLUP-SLECC and its Affiliates Workers Union filed a petition for certification election on 27 February 2001 and remained pending as of 20 July 2001. SLECC’s voluntary recognition of SMSLEC on 20 July 2001, the subsequent negotiations and resulting registration of a CBA executed by SLECC and SMSLEC are void and cannot bar CLUP-SLECCWA’s present petition for certification election.

6. Employer’s Participation in a Petition for Certification Election: the employer is a mere bystander and cannot oppose the petition or appeal the Med-Arbiter’s decision. The exception is when the employer is requested to bargain collectively.