G.R. No. 106518 - ABS-CBN Supervisors Employees Union Members vs. ABS-CBN Broadcasting Corp.

The case arose from a special civil action for certiorari seeking the reversal of an Order issued on July 31, 1992, by DOLE Undersecretary Bienvenido E. Laguesma.
The dispute centers on a collective bargaining agreement (CBA) between ABS-CBN Supervisors Employees Union and ABS-CBN Broadcasting Corporation executed on December 7, 1989, which contained a check-off provision.
The check-off provision provided that the Company would advance to the Union an amount equivalent to 10% of all salary increases and signing bonuses granted under the CBA to cover the Union’s incidental expenses, including attorney’s fees and representation expenses.

On September 19, 1990, a Complaint was filed with the Bureau of Labor Relations (DOLE-NCR, Quezon City) by petitioners challenging:

The legality of the special assessment under labor laws, specifically citing possible non-compliance with Article 241 of the Labor Code and alleged violation of the Union’s Constitution and By-Laws;
The continuation of salary deductions for this special assessment.

Respondents (Union Officers and the Company) defended the check-off provision by asserting that the majority of Union members had individually authorized the deductions.
On January 21, 1991, Med-Arbiter Rasidali C. Abdula issued an Order declaring the special assessment illegal and ordering:

Refund of the advanced amount of P500,000.00 to Union members;
The cessation of further advances and deductions;
Remittance of amounts previously deducted to the complainants and affected members;
Submission of a compliance report by the respondents.

On July 1, 1991, DOLE Undersecretary Laguesma affirmed the Med-Arbiter’s Order, thereby denying the appeal made by the respondents.
Shortly after, on July 13, 1991, respondents filed a Motion for Reconsideration, arguing the validity of the special assessment based on a precedent (Bank of the Philippine Islands Employee Union - ALU vs. NLRC).
On July 31, 1992, the Undersecretary issued an Order setting aside his earlier Decision, thereby dismissing the Complaint for lack of merit, which later became the subject of the petition for certiorari regarding alleged grave abuse of discretion.

Petitioners questioned whether the public respondent had committed grave abuse of discretion in reversing his own Decision of July 1, 1991.
They argued that the earlier Decision, being final and unappealable per Section 8, Rule VIII, Book V of the Omnibus Rules Implementing the Labor Code, should not be subject to reconsideration without first exhausting that remedy.
The petition raised issues regarding compliance with procedural and statutory requirements for implementing a check-off deduction under the Labor Code.

Whether the DOLE Undersecretary committed grave abuse of discretion in issuing the Order dated July 31, 1992, thereby reversing his own earlier Decision of July 1, 1991.
Whether the procedure requiring a motion for reconsideration as a prerequisite for judicial review under Rule 65 of the Rules of Court was correctly applied.
Whether the check-off provision in the CBA, instituting a 10% special assessment for union expenses, complied with the statutory requisites under Article 241 of the Labor Code, specifically regarding required authorizations and procedural formalities.
Whether the special assessment should be deemed illegal due to alleged non-compliance with the statutory requirements (including lack of submission for approval at a general membership meeting and non-compliance with specific provisions of Article 241).