74. Sta. Lucia East Commercial Corp V. Sec. Of Labor.docx

Case Name: Sta. Lucia East Commercial Corp v. Secretary of Labor G.R. Number: 162355 Topic: Bargaining agent and Author: certification election proceedings. Doctrine: The employer may voluntarily recognize repetition status of a union in unorganized establishments. SLECC was not an unorganized establishment when it voluntarily recognized SMSLEC. CLUP-SLECC and its affilaites filed a petition for certification election and this petition remained pending thus the voluntary recognition of SMSLEC is void and cannot bar CLUP-SLECC petition for certification election. Facts: - Confederated Labor Union of the Philippines – Sta. Lucia East Commercial Corp (CLUP-SLECC) filed a petition for certification election among the regular rank and file employees of sta. lucia east commercial corporation and its affiliates. - Med-Arbiter Bactin dismissed the petition due to inappropriateness of the bargaining unit. - CLUP-SLECC and its affiliates workers union appealed but eventually withdrew the appeal which was granted. - CLUP-SLECC and its affiliates reorganized themselves as CLUPSLECCWA limiting its membership to rank and file employees of Sta. Lucia which was issued a certificate of creation of a local chapter. - CLUP-SLECCWA filed a petition alleging that: - SLECC employs about 115 employees and that more than 20% of employees belonging to the r and f are its members. - no certification election has been held among them within the last 12 months and while there is another union registered with DOLE covering the same employees (SMSLEC) it has not been recognized as the exclusive bargaining agent of (SLECC) employees. - SLECC filed a MTD: - averred that it has voluntarily recognized SMSLEC as the exclusive bargaining agent of its r and f employees - CBA negotiations have already been commeneced between

them and that the petion should be filed for violating the 1 year and negiotation bar rules - a CBA between SMSLEC and SLECC was ratified by the r and f employees and registered with DOLE - CLUP-SLECCWA filed its opposition claiming: - assailed the validity of the voluntary recognition of the CBA - it was tainted with malice, collusion and conspiracy - Chief Leo of DOLE regional office 4 should not have approved and recorded the voluntary recognition because it is a non-existen labor organization. - Med-Aribter dismissed the petition for direction certification on the ground of contract bar rule. - the voluntary recognition of the CBA bars the filing of CLUPSLECCWAs petition for direct certification. - SMSLEC is entitled to enjoy the rights, privileges and obligations of an exclusive bargaining representative. - SoL found merit in CLUP-SLECCWAs appeal. - ruled that subsequent negotiations and registration of a CBA could not bar the petition. - CLUP-SLECCWA is a registered labor organization at the time of SLECCs voluntary recognition of SMSLEC. - SLECC filed an MR but was denied. - CA affirmed the ruling of the SoL ISSUE: WON CA COMMITTED REVERSIBLE ERROR WHEN IT AFFIRMED THESECRETARYS FINDING THAT SLECCS VOLUNTARY RECOGNITION OF SMSLEC WAS DONE WHILE A LEGITIMATE LABOR ORG WAS IN EXISTENCE IN THE BARGAINIGN UNIT? Held/Ratio Labor organization – 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. Upon compliance with all documentary requirements, the regional officer shall issue in favor of the applicant labor org a certificate indicating that it is include in the roster of legit labor orgs. It shall

acquire legal personality and entitled to rights and privileges granted by law to a legit labor org upon issuance of the certificate of registration Bargaining unit – 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 recirprocal rights and duties of the parties under the collective bargaining provisions of the law. - will of the employees - substantial similarity of work and duties or compensation and conditions - prior collective bargaining history - similarity of employment status the court said that CLUP-SLECC and its affiliates workers union initial problem was that they constituted a legit labor org representing a nonappropriate bargaining unit. However, it re-registered and limited its members to r and f of SLECC. The court said that SLECC cannot ignore that CLUP-SLECC and its affiliates was a legit labor organization at the time of SLECCs voluntary recognition of SMSLEC. Also the inclusion in the union of disqualified employees is not among the gorunds for cancellation of registration unless there is misrepresentation, false statement or fraud. Thus CLUP-SLECC and its affiliates after being issued a certificate of registration should be considered as having acquired juridical personality which may not be attacked collateraly. The proper procedure therefore is not to immediately commence voluntary recognition with SMSLEC but rather to file a petition for cancellation of registration. The employer may voluntarily recognize represtation status of a union in unorganized establishments. SLECC was not an unorganized establishment when it voluntarily recognized SMSLEC. CLUP-SLECC and its affilaites filed a petition for certification election and this petition remained pending thus the voluntary recognition of SMSLEC is void

and cannot bar CLUP-SLECC petition for certification election.