Facts:

• The case involves La Suerte Cigar and Cigarette Factory (petitioner) and various respondents, including the Director of the Bureau of Labor Relations and labor unions.
• On April 7, 1979, the local union was granted chapter status by NATU.
• On April 16, 1979, thirty-one members withdrew their membership from NATU.
• On April 18, 1979, the local union and NATU filed a petition for direct certification, claiming 48 out of 60 sales personnel were union members, supported by 75% of the sales force.
• The petitioner contested the petition on June 13, 1979, arguing it lacked the necessary 30% support due to the withdrawal of the thirty-one members and that fourteen alleged union members were independent contractors.
• The local union argued that the fourteen were employees under the company's control.
• On August 29, 1979, the Med-Arbiter dismissed the petition, agreeing that the fourteen were independent contractors.
• The local union's motion for reconsideration was initially denied, but the Director of the Bureau of Labor Relations later reversed the Med-Arbiter's decision.
• The petitioner sought to set aside this resolution, leading to the current case.

Issue:

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Ruling:

• The Supreme Court ruled that the fourteen dealers are independent contractors, not employees of the petitioner.
• The Court held that the withdrawal of the thirty-one members prior to the filing of the petition was valid and affected the 30% requirement.
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Ratio:

• The Supreme Court's decision was based on the interpretation of dealership agreements between the company and the fourteen dealers.
• The Court applied the "control test" to determine the employer-employee relationship, noting that lack of control over work methods indicates independent contractor status.
• The agreements defined the relatio...continue reading