Tagaytay Highlands International Golf Club Incorporated V Tagaytay Highlands Employees Union.docx

TAGAYTAY HIGHLANDS INTERNATIONAL GOLF CLUB INCORPORATED v TAGAYTAY HIGHLANDS EMPLOYEES UNION-PTGWO G.R. No. 142000 | January 22, 2003 Carpio-Morales, J. | Protacio Summary Respondent labor organization filed with the DOLE MediationArbitration unit a petition for certification election, which petitioner company opposed to – one of the grounds being that some of the members in the list included supervisors. THIGCI submitted a list of signatories whose membership in the union was being questioned as disqualified. The Supreme Court upheld the certification granted to the labor organization, with a ruling that the certification of registration cannot be subject to collateral attack. As for the alleged supervisory employees, it wasn’t enough that the company just place the job titles, because a description of what they actually do is important to show that they are truly supervisory, with effective recommendatory powers. Doctrine Nothing was mentioned about the alleged supervisors’ respective duties, powers, and prerogatives that would show that they can effectively recommend managerial actions. Citing Pepsi-Cola Products Philippines, Inc. v Sec. of Labor (another case in the syllabus), “The mere fact that an employee is designated manager doesn’t necessarily make him one.” FACTS - THEU and PTGWO (respondents), a legitimate labor organization said to represent majority of the rank-and-file employees of THIGCI (petitioner) filed a petition for certification before the DOLE Mediation-Arbitration Unit (October 16, 1997) o THIGCI opposed this petition on the following grounds that the list of union members was defective and fatally flawed

Included names and signatures of supervisors, resigned, terminated and AWOL employees  Also included employees of The Country Club, Inc, a corporation distinct and separate from THIGCI  Alleged that some of the signatories were secured through fraudulent and deceitful means, and that they actually denied and withdrew membership THIGCI submitted a list of names of the only 71 actual rankand-file employees o Incorporated a tabulation showing the number of signatories to the petition whose membership was being questioned  “13 Supervisors of THIGCI (reason for disqualification)” THEU, in its reply, asserted that it had complied with all the requirements for valid affiliation o It was duly granted a Certification of Affiliation by DOLE (October 10, 1997) o Sec. 5, Rule V of DO No. 9 provides that legitimacy of its registration cannot be subject to collateral attack DOLE Med-Artiber ordered the holding of certification election among the rank-and-file employees o Held that THIGCI’s allegation on disqualification of members should be properly raised in the exclusioninclusion proceedings at the pre-election conference o As for allegation of fraud and deceit, it should be coursed through an independent petition for cancellation of union registration o THIGCI failed to submit the job descriptions of the questioned employees to bolster its claim that they are disqualified THIGCI appealed to DOLE Secretary (THEU seeks to represent two separate bargaining units – supervisory and rank-and-file) o Dismissed the petition for certification election on the ground of absence of community or mutuality of interest 

-

-

-

-

-

o However, upon MR of THEU, DOLE Undersecretary set aside the previous resolution  Being a local chapter, the 20% membership requirement is not necessary to acquire legitimate status  Names of alleged disqualified supervisory employees should simply be removed from the roster o Records remanded to Office of the Med-Arbiter for conduct of certification elections THIGCI filed a petition for certiorari which was referred to the Court of Appeals o CA denied petition and affirmed DOLE Resolution Hence, this petition for certiorari under Rule 45 o Petitioner argues that jurisprudence provides that “a labor organization composed of both rank-and-file and supervisory employees is no labor organization at all.”  “It is necessary to the granting of an order allowing a certification election, to inquire into the composition of any labor organization whenever the status of the labor organization is challenged” o That without resolving the status of THEU, DOLE Undersecretary conveniently deferred the resolution on the serious infirmity in the membership of THEU

ISSUE W/N the petition for certification election of respondent can continue despite the allegations of petitioner. – YES RATIO (most relevant to our topic is the part on lack of mutuality of interest) - Statutory authority for exclusion of supervisory employees in a rank-and-file union is Art. 255 [245] o “xxx Supervisory employees shall not be eligible for membership in the collective bargaining unit of the rankand-file employees but may join, assist or form separate

-

-

-

-

-

collective bargaining units and/or legitimate labor organizations of their own. xxx” While the provision expressly prohibits supervisory employees from joining a rank-and-file union, it does not provide what would be the effect if a rank-and-file union counts supervisory employees among its members, or vice versa Petition fails. After a certification of registration is issued to a union, its legal personality cannot be subject to a collateral attack. It may be questioned Sec. 5 of Rule V, Book IV of the Implementing Rules of the Labor Code provides for the effect of registration o “The labor organization/workers’ association shall be deemed registered and vested with legal personality on the date of issuance of its certificate of registration. Such legal personality cannot thereafter be subject to collateral attack, but may be questioned only in an independent petition for cancellation in accordance with these Rules.” The grounds for cancellation of union registration are provided for under Art. 247 [239] o The inclusion in a union of disqualified employees is not among the grounds for cancellation, unless such inclusion is due to misrepresentation, false statement or fraud under the circumstances enumerated in Sections (a) and (c) THEU, having been validly issued a certificate of registration, should be considered to have already acquired juridical personality, which may not be assailed collaterally For the allegation of signatures acquired through fraud, false statement and misrepresentation o Proper procedure is a petition for cancellation of certificate of registration, not to intervene in a petition for certification election For the allegation of withdrawal of union members from participating in certification election o Best forum is the certification election itself – so that they can freely express their choice in a secret ballot

-

For the allegation on the lack of mutuality of interest o THIGCI failed to present substantial evidence that the assailed employees are actually occupying supervisory positions o While they submitted a list of employees with their corresponding job titles and ranks, there is nothing mentioned about the supervisors’ respective duties, powers, and prerogatives that would show that they can effectively recommend managerial actions which require the use of independent judgment o Pepsi-Cola Products Philippines Inc v Secretary of Labor  The mere fact that an employee is designated manager does not necessarily make him one. Otherwise, there would be an absurd situation where one can be given the title just to be deprived of the right to be a member of the union  What is essential is the nature of the employee’s function and not the nomenclature or title given

RULING Petition denied.