Title
Coca-Cola FEMSA Philippines, Inc. vs. Central Luzon Regional Sales Executive Union of Coca-Cola San Ferdo Plant
Case
G.R. No. 233300
Decision Date
Sep 3, 2020
Coca-Cola challenged a union's registration, alleging managerial employees were ineligible members. Courts upheld the union, ruling inclusion of ineligible members isn't grounds for cancellation.

Case Digest (G.R. No. 230519)
Expanded Legal Reasoning Model

Facts:

  • Parties and Background
    • Coca-Cola FEMSA Philippines, Inc.
      • A domestic corporation engaged in the manufacturing of carbonated drinks and other beverages.
    • Central Luzon Regional Sales Executive Union of Coca-Cola San Fernando Plant
      • A legitimate labor organization established to represent the sales executives of Coca-Cola in the Central Luzon region (including Pampanga, Bataan, Zambales, and Tarlac).
  • Petition for Cancellation and Allegations
    • Filing of the Petition
      • On January 21, 2016, Coca-Cola filed a petition for cancellation of the union’s registration with the DOLE Regional Office in San Fernando, Pampanga.
    • Grounds Alleged by Coca-Cola
      • Alleged that the union’s membership included managers who are ineligible to join, assist, or form any labor organization.
      • Claimed that the sales executives, previously classified as supervisory, were now imbued with managerial and executive functions following the acquisition and subsequent reorganization effected by Coca-Cola FEMSA (the parent company).
  • Transformation in Job Functions
    • Job Function Changes
      • A shift from a supervisory role to one that included business planning, performance management, project implementation, cost management, hiring, managing, training, and decision-making in disciplinary actions.
    • Managerial vs. Supervisory Functions
      • Coca-Cola argued that these new functions amounted to managerial roles, thus rendering those union members ineligible under labor laws.
      • The union, however, maintained that its members were mere supervisors whose recommendations (such as in hiring or termination) required final approval by the Human Resources Department or higher management.
  • Administrative and Judicial Proceedings
    • DOLE Regional Office Decision (May 25, 2016)
      • The petition for cancellation was denied.
      • The office held that the mere inclusion of members from outside the bargaining unit was not a sufficient ground for cancellation, as such ineligible employees would be automatically removed from the union’s member list per Section 6, Rule XIV of DOLE Order 40-F-03-08.
    • Bureau of Labor Relations (BLR) Resolution (August 10, 2016)
      • Affirmed the decision of the DOLE Regional Office.
    • Court of Appeals (CA) Proceedings
      • Coca-Cola filed a petition for certiorari under Rule 65 with the CA, challenging the administrative decisions.
      • The CA dismissed the petition on both procedural grounds (failure to file a motion for reconsideration) and substantive grounds (absence of any valid ground under Article 239 [now Article 247] of the Labor Code for cancellation).
    • Subsequent Petition Before the Supreme Court
      • Coca-Cola raised the issue on appeal through a petition under Rule 45, which later became the subject matter of the current review.

Issues:

  • Procedural Issue
    • Whether the failure to file a motion for reconsideration before resorting to a petition for certiorari—despite some enumerated exceptions—rendered Coca-Cola’s petition procedurally defective.
  • Substantive Issue
    • Whether the inclusion of employees (allegedly performing managerial functions) within the union membership constituted valid grounds for cancellation of the union’s registration under the Labor Code.
    • Whether the provision under Section 6, Rule XIV of DOLE Order 40-F-03-08, which mandates the automatic removal of ineligible employees from the union membership, precludes cancellation based on the alleged inclusion.
  • Scope of Judicial Review
    • Whether the appellate courts (CA and subsequently the Supreme Court) should review findings of fact made by administrative agencies (DOLE Regional Office and BLR) or limit their review to errors of law in the petition.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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