Title
Ilaw at Buklod ng Manggagawa vs. National Labor Relations Commission
Case
G.R. No. 81852-53
Decision Date
Mar 5, 1993
Union members protested a 10% deduction from CBA benefits and were expelled; courts ruled jurisdiction over intra-union disputes lies with labor relations bodies, not NLRC.

Case Digest (G.R. No. 81852-53)
Expanded Legal Reasoning Model

Facts:

  • Background of the Parties and the Collective Bargaining Process
    • Petitioner: ILAW AT BUKLOD NG MANGGAGAWA (IBM), a duly-registered labor union, serves as the sole and exclusive bargaining representative of all daily-paid workers at the Metro Manila plants of San Miguel Corporation (SMC).
    • December 3, 1986: The petitioner and SMC entered into a Memorandum of Agreement on a Collective Bargaining Agreement (CBA).
  • Ratification of Resolutions and Approval Process
    • December 7, 1986:
      • The National Council of the petitioner convened a general meeting to ratify the CBA.
      • Prior to the general meeting, a special meeting was held where all present members unanimously passed “Resolusyon Blg. 265, Serye 1986”, agreeing to submit the resolution to the general membership for final approval.
    • At the general assembly attended by 2,243 members:
      • The resolution was presented for approval.
      • Voting results showed 2,107 in favor and 36 against.
    • Outcome of the Assembly:
      • The 1986 CBA was ratified by the membership.
      • Under the adopted resolution, each union member was assessed an amount of P1,098.00 to be deducted from the lump sum of P10,980.00 payable under the CBA.
  • Emergence of the Dispute
    • Private respondents, who opposed the deduction, protested and refused to sign the authorization slip for the said deduction.
    • January 6, 1987:
      • The petitioner passed a resolution expelling the private respondents from the union.
      • SMC held in trust the assessed amount (P1,098.00) corresponding to each private respondent.
  • Initiation of Legal Proceedings
    • January 8, 1987:
      • Private respondents Antonio Magsipoc and Abundio Ibasco filed a complaint (NLRC-NCR Case No. 1-092-87) before the Arbitration Branch of the NLRC for the alleged illegal and exorbitant deduction and illegal expulsion.
    • February 1987:
      • Similar complaint filed by private respondents Carlos Villarante and Bienvenido Ramirez (Case No. 00-02-00731-87).
    • January 29, 1987:
      • The petitioner filed a motion to dismiss Case No. 1-092-87, arguing lack of jurisdiction of the NLRC.
    • February 4, 1987:
      • Labor Arbiter Manuel Asuncion issued an order denying the motion to dismiss.
    • Consolidation and Proceedings:
      • The two cases were consolidated under the cognizance of the Labor Arbiter.
      • While private respondents submitted their position papers, the petitioner refused to participate further in the proceedings.
  • Decisions and Resolutions Issued
    • May 29, 1987:
      • The Labor Arbiter rendered a decision declaring the assessment illegal.
      • Orders were given:
        • Petitioner and SMC were to return the assessed amount of P1,098.00 to each private respondent.
ii. The expulsion of the private respondents was declared null and void. iii. The petitioner was enjoined from expelling members who objected to the deduction.
  • Subsequent NLRC Actions:
    • October 12, 1987: NLRC issued a resolution affirming the Labor Arbiter’s decision and dismissed the petitioner’s appeal.
    • January 11, 1988: A motion for reconsideration filed by the petitioner was denied in another NLRC resolution.
  • Central Issue Raised on Appeal
    • Petitioner’s Assigned Errors:
      • Jurisdiction over the person of the petitioner union.
      • Jurisdiction over the nature of the action.
      • Determination that the sum assessing the deduction amounts to a wage deduction and an attorney’s fee.
    • Focus on the Second Assigned Error:
      • The crux of the controversy centered on whether the NLRC properly assumed jurisdiction over an intra-union dispute.

Issues:

  • Jurisdiction Over Intra-Union Disputes
    • Whether the NLRC had the authority to assume jurisdiction over disputes that are internal to the labor union, particularly in view of the provision granting exclusive jurisdiction to the Bureau of Labor Relations and its Labor Relations Divisions for intra-union matters.
  • Nature of the Dispute and Its Subject Matter
    • Whether the issues raised—specifically, the imposition of a special assessment (deduction) from the CBA differential pay and the expulsion of union members—constitute an “internal union dispute” within the meaning of the Labor Code.
    • Whether such intra-union disputes fall outside the jurisdiction of the NLRC, regardless of the merits of the claims raised.
  • Characterization of the Special Assessment
    • Whether the amount deducted (P1,098.00) should legally be considered a wage or merely an internal union fee.
    • The implications of labeling the deduction as an “attorney’s fee” on the jurisdictional power and authority of the NLRC in such matters.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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