United Polyresins Inc V. Pinuela.docx

UNITED POLYRESINS INC v. PINUELA Union Security - Implementation| 31 July 2017 | J. Del Castillo Nature of Case: Petition for Review on Certiorari Digest maker: Africa

union to expel the employee from the union. With respect to the last requisite, there is no sufficient evidence to support the expulsion and Pinuela was not properly informed of the accusations against him. ISSUE/S & RATIO: 1. WON respondent was illegally dismissed. — YES

SUMMARY: Pinuela who was former president of PORFA was expelled on the ground of misappropriation of funds and violation of the union’s constitution. Due to the union security clause, his employment was terminated by UPI, prompting Pinuela to file an illegal dismissal case. SC ruled in his favour on ground that his expulsion from the union is without support, and as a consequence, his dismissal from the company is without just cause.

Pinuela was expelled from the union on the ground of misappropriation of funds and wilful violation of their union’s constitutional provision. However, these provisions refer to impeachment and recall of union officers, and not expulsion from union membership.

- The only provision authorizing removal from the union is found in Article X, Section 6, that

DOCTRINE: When an employer exercises its power to terminate an employee by enforcing the union security clause, it needs to determine and prove the following: (1) the union security clause is applicable; (2) the union is requesting for the enforcement of the union security provision in the CBA; and (3) there is sufficient evidence to support the decision of the union to expel the employee from the union. With respect to the last requisite

is, on the ground of failure to pay union dues, special assessments, fines, and other mandatory charges.

- On the other hand, those who are disqualified from membership are subversives or persons who profess subversive ideas; persons convicted of crime involving moral turpitude; and persons who aren’t company’s employees. In this case, although Pinuela was charged with estafa, a crime involving moral turpitude, he was not yet convicted.

- Pinuela was then illegally dismissed for lack of just cause. FACTS: 1. Pinuela was employed in United Polyresins Inc (UPI). He then became a member of Polyresins Rank and File Association (PORFA) and was elected as a president. It was provided in the CBA that UPI shall grant 300k to PORFA for establishment of a cooperative RULING: CA decision affirmed. and that this loan shall be due at the expiration of the CBA. 2. When Pinuela received the financial records from the former union President, he hired an accountant to conduct an audit. It was found that there are discrepancies in the documents and that union’s finances were not properly documented. 3. Days before the expiration of the CBA, UPI, Pinuela, and other union officers met to discuss proposed new CBA, but UPI refused in light of the unpaid 300k. The latter also said that if the amount would not be paid, it shall be deducted from the union members’ salaries. 4. An election was then held in the union. During the investigation conducted by new officers, Pinuela admitted that there were no more funds as they were used for the prosecution of cases during his incumbency. It was also discovered that PORFA’s bank account had already been closed. 5. New officers issued a resolution expelling Pinuela from PORFA on the ground of misappropriating the union funds. Consequently, UPI terminated Pinuela’s employment in light of the Union Security Clause. The latter then filed an illegal dismissal. 6. CA: When an employer exercises its power to terminate an employee by enforcing the union security clause, it needs to determine and prove the following: (1) the union security clause is applicable; (2) the union is requesting for the enforcement of the union security provision in the CBA; and (3) there is sufficient evidence to support the decision of the