Title
Mariwasa Ceramics, Inc. vs. Secretary, Department of Labor and Employment
Case
G.R. No. 183317
Decision Date
Dec 21, 2009
A union's legitimacy upheld as the Supreme Court dismissed claims of fraud and invalidated affidavits of recantation, affirming compliance with membership requirements.
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Case Digest (G.R. No. 183317)

Facts:

1. Union Registration and Petition for Cancellation:

  • On May 4, 2005, respondent Samahan Ng Mga Manggagawa Sa Mariwasa Siam Ceramics, Inc. (SMMSC-Independent) was issued a Certificate of Registration as a legitimate labor organization by the Department of Labor and Employment (DOLE), Region IV-A.
  • On June 14, 2005, petitioner Mariwasa Siam Ceramics, Inc. filed a Petition for Cancellation of Union Registration against SMMSC-Independent, alleging violations of Article 234 (20% membership requirement) and Article 239 (fraud and misrepresentation) of the Labor Code.

2. Regional Director’s Decision:

  • On August 26, 2005, the Regional Director of DOLE IV-A granted the petition, revoking SMMSC-Independent’s registration and delisting it from the roster of active labor unions.

3. Appeal to the Bureau of Labor Relations (BLR):

  • SMMSC-Independent appealed to the BLR, which reversed the Regional Director’s decision on June 14, 2006, reinstating the union’s registration.

4. Motion for Reconsideration and CA Petition:

  • Petitioner filed a Motion for Reconsideration, which was denied by the BLR on February 2, 2007.
  • Petitioner then filed a Petition for Certiorari with the Court of Appeals (CA), which denied the petition for lack of merit. The CA also denied petitioner’s motion for reconsideration.

5. Affidavits of Recantation:

  • Petitioner claimed that 102 employees executed affidavits recanting their union membership, which would reduce the union’s membership below the 20% requirement.
  • The affidavits alleged that the employees were forced or deceived into joining the union and expressed regret for their membership.

Issue:

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Ruling:

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Ratio:

  1. Affidavits of Recantation:

    • Retractions are viewed with disfavor and do not automatically negate prior declarations. The voluntariness of the affidavits was suspect, as they were executed after the union’s registration and under circumstances suggesting employer pressure.
    • The affidavits were standardized and lacked specific details about the alleged force or deceit, making them unreliable.

  2. 20% Membership Requirement:

    • Article 234 of the Labor Code only requires a union to have at least 20% of the employees in the bargaining unit at the time of registration. There is no requirement to maintain this percentage thereafter.
    • The union had 169 members at the time of registration, representing 32% of the rank-and-file employees, well above the 20% threshold.

  3. Misrepresentation, Fraud, or False Statements:

    • For a union’s registration to be canceled, the misrepresentation or fraud must be grave and compelling enough to vitiate the consent of the majority of union members.
    • The alleged discrepancies in the union’s documents were minor and did not constitute grounds for cancellation. The union’s compliance with the 20% requirement was sufficient to uphold its registration.

Conclusion:

The Supreme Court upheld the legitimacy of SMMSC-Independent as a labor organization, finding no merit in the petitioner’s claims. The Court emphasized the importance of protecting the right to self-organization and the need for clear and compelling evidence to cancel a union’s registration.


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