Title
Manila Electric Co. vs. Secretary of Department of Labor and Employment
Case
G.R. No. 91902
Decision Date
May 20, 1991
MERALCO employees excluded from the existing CBA sought a separate bargaining unit. The Supreme Court upheld their right to self-organization, classifying Pay Grades VII+ as supervisory and allowing security personnel to join unions, affirming a certification election.

Case Digest (G.R. No. 91902)
Expanded Legal Reasoning Model

Facts:

  • Petition for Certification Election
    • On November 22, 1988, the Staff and Technical Employees Association of MERALCO (STEAM-PCWF) filed a petition to represent:
      • Non-managerial employees with Pay Grades VII and above
      • Non-managerial employees in the Patrol Division, Treasury Security Services Section, and Secretaries
      • Rank-and-file employees automatically disqualified from MEWA membership
    • The petition challenged exclusions under Article I, Sections 2–3 of the existing MEWA CBA for Pay Grades I–VI.
  • Proceedings Before the Med-Arbiter
    • MERALCO moved to dismiss on grounds that the claimed employees were managerial, security, secretarial, or already covered by MEWA, and that the petition lacked 20% written support.
    • On March 15, 1989, Med-Arbiter Parungo ruled excluded employees (except managerial) could form their own union and ordered a certification election.
  • Appeals and Secretary of Labor Resolution
    • MERALCO appealed; MEWA intervened contending violations of Articles 232 and 245 of the Labor Code and improper bargaining unit. STEAM-PCWF opposed.
    • FLAMES filed a separate petition on September 13, 1989, to represent Pay Grades VII–XIV; cases were consolidated.
    • On November 3, 1989, Secretary Drilon affirmed with modification:
      • Employees under MEWA-CBA Section 3 remain in existing rank-and-file unit but may choose union membership
      • Included FLAMES as an election choice
    • MERALCO’s motion for reconsideration was denied January 16, 1990.
    • MERALCO filed a petition for certiorari with the Supreme Court on February 9, 1990; a TRO was issued February 26, 1990.
  • Legislative and Organizational Developments
    • RA 6715 (effective March 21, 1989) redefined managerial, supervisory, and rank-and-file employees.
    • STEAM-PCWF renounced representation of Patrol/Treasury and Pay Grades I–VI; FLAMES limited to supervisory Pay Grades VII–XIV.
    • MERALCO acknowledged Grades VII and above as supervisory under RA 6715 definitions.

Issues:

  • Whether a separate rank-and-file bargaining unit may be established distinct from the existing MEWA unit.
  • Whether Pay Grades VII and above are rank-and-file employees eligible for R&F union representation.
  • Whether security guards may be included in a rank-and-file or supervisory union.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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