Case Digest (G.R. No. 94045)
Facts:
Petitioner Central Negros Electric Cooperative, Inc. (CENECO) sought certiorari to annul the June 6, 1990 order of then Acting Secretary of Labor Bienvenido E. Laguesma directly certifying CENECO Union of Rational Employees (CURE) as sole bargaining representative after a med-arbiter had ordered a certification election. CURE had sought renegotiation of a CBA that expired March 31, 1990; 259 of 362 union members approved withdrawal from the cooperative in a December 9, 1989 resolution, CENECO denied the withdrawals by Resolution No. 90, CURE filed for direct recognition or certification election supported by 282 of 388 rank-and-file employees, the med-arbiter ordered an election, and the Secretary modified that order by direct certification, prompting this petition.
Issues:
- Are the withdrawing employee-members entitled to form or join CURE for purposes of collective bargaining notwithstanding prior membership in the cooperative?
- Did the med-arbiter have jurisdiction to determine the legality of the employees' withdrawal from membership in the cooperative in a representation proceeding?
- Did the Secretary commit grave abuse of discretion in directly certifying CURE without a certification election?
Ruling:
The Court annulled and set aside the Secretary's direct certification of CURE and ordered the med-arbiter to conduct a certification election with CURE and No Union as the choices. The Court held that the med-arbiter had jurisdiction to determine the legality of the withdrawals and that the withdrawing employees were entitled to join CURE; however, direct certification was improper under Executive Order No. 111 and applicable precedents favoring certification elections.
Ratio:
The Court found CENECO had submitted the membership-withdrawal issue to the med-arbiter by invoking it in its motion to dismiss and was estopped from denying that forum; the cooperative's Articles and By-Laws permitted withdrawal upon compliance with board-prescribed terms and no proof of noncompliance was shown. The Court held that the right of employees to self-organization and the State policy favoring free collective bargaining outweighed the cooperative voting interest of a small number of member-employees, and that the prohibition in Batangas I Electric Cooperative Labor Union v. Romeo A. Young did not bar withdrawal to join a union. Finally, the Court reasoned that Executive Order No. 111 eliminated the direct certification route under Article 257 such that a certification election remains the proper democratic method to determine majority representation.
Doctrine:
- The med-arbiter in representation cases has the power to determine who are eligible voters and the legality of union membership incident to Article 256 proceedings.
- Employees who are member-employees of an electric cooperative may withdraw their membership in accordance with the cooperative's governing rules and thereafter join a labor union for collective bargaining purposes.
- Direct certification as a method of selecting an exclusive bargaining agent is discontinued by Executive Order No. 111, and certification elections are the preferred method.
- A party that invokes a tribunal's jurisdiction and obtains an adverse ruling is estopped from later denying that tribunal's jurisdiction.