Title
Pepsi-Cola Products Philippines, Inc. vs. Secretary of Labor
Case
G.R. No. 96663
Decision Date
Aug 10, 1999
A supervisors’ union sought certification election; PEPSI contested, citing managerial status and improper affiliation. Court ruled withdrawal moot, clarified eligibility, and upheld election process.
A

Case Digest (G.R. No. 96663)

Facts:

  • Parties and Proceedings
    • Petitioners: Pepsi-Cola Products Philippines, Inc. (PEPSI).
    • Respondents: Hon. Secretary of Labor, Med-Arbiter Napoleon V. Fernando/Celenio N. Daing, and Pepsi-Cola Supervisory Employees Organization-UOEF (the Union).
    • Med-Arbiter Cases:
      • R100-9101-RU-002 – Certification Election petition.
      • R1000-9102-RU-008 – Petition to Set Aside/Cancel/Revoke Union Charter.
      • R1000-9104-RU-012 – Petition for Cancellation of Registration Certificate No. 11492-LC.
  • Chronology of Events
    • June–July 1990
      • Union files certification election petition to represent supervisors.
      • July 12, 1990: Med-Arbiter grants petition, noting Union’s affiliation with Union de Obreros Estibadores de Filipinas (federation) and two rank-and-file unions (PCLU, PEUP).
    • July–October 1990
      • July 23: PEPSI files with Bureau of Labor Relations (BLR) petition to cancel Union’s charter, alleging inclusion of managerial employees and forbidden dual affiliation under Art. 245.
      • August–September: PEPSI moves to reopen, files position paper, receives/schedules summons and pre-trial.
      • October 12: PEPSI appeals to Secretary of Labor, moves to suspend election; suspended October 18.
    • November 1990–February 1991
      • November 12, 1990: Secretary denies reconsideration of appeal.
      • PEPSI files certiorari with Supreme Court; February 6, 1991: SC grants TRO/preliminary injunction against election.
    • March–December 1991
      • Federation and OSG submit comments: argue Art. 245 does not bar supervisory local union from affiliating with federation containing rank-and-file locals.
      • Union files rejoinder; PEPSI replies and supplements, emphasizing conflicts of interest.
      • August: OSG rejoinder stresses employer’s lack of standing in certification.
      • December: SC Second Division grants PEPSI’s motion for reconsideration; case proceeds.
    • G.R. No. 103300 (Cagayan de Oro cases)
      • May 23, 1991: Med-Arbiter dismisses cancellation/revocation petitions; orders certification election among supervisors.
      • June–October: PEPSI appeals to Secretary; October 4: Secretary sustains call for election but refers cancellation petitions to regional office; motion for reconsideration denied December 12.
      • BLR issues Registration Certificate No. 11492-LC in favor of Union; PEPSI files certiorari challenging:
1) Classification of respondents as non-managerial; 2) Legality of federation affiliation; 3) Election call despite pending cancellation.
  • Union Withdrawal and Final Determination
    • September 1, 1992: Union withdraws from federation, rendering affiliation issue moot.
    • Supreme Court issues decision dismissing petitions but modifies Secretary’s October 4, 1991 order: declares Credit & Collection Managers and Accounting Managers as highly confidential employees, ineligible for supervisors’ union membership.

Issues:

  • Can a supervisors’ union affiliate with a federation that also comprises rank-and-file locals without violating Article 245 of the Labor Code?
  • Does the pendency of a petition to cancel/revoke a union’s registration certificate constitute a prejudicial question to a certification election petition?
  • Are certain positions (Route Managers, Chief Checkers, Warehouse Operations Managers, Credit & Collection Managers, Accounting Managers) managerial or confidential employees, and thus ineligible to join a supervisors’ union under Art. 245 and its necessary implication?

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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