Title
Republic vs. Namboku Peak, Inc.
Case
G.R. No. 169745
Decision Date
Jul 18, 2014
Namboku Peak and Phil-Japan cases challenged Section 17 of DO 40-03's constitutionality, barring appeals in unorganized establishments. SC ruled Section 17 unconstitutional, upheld CA's decision excluding project employees from bargaining units, and denied Secretary of Labor's standing to appeal.
A

Case Digest (G.R. No. 169745)

Facts:

Republic of the Philippines, represented by the Honorable Secretary of Labor and Employment (DOLE), petitioner, vs. Namboku Peak, Inc., respondent; and Phil-Japan Workers Union Solidarity of Unions in the Philippines for Empowerment and Reforms (PJWU‑SUPER), Med‑Arbiter Clarissa G. Beltran‑Lerios and Secretary Patricia A. Sto. Tomas of the Department of Labor and Employment, petitioners, vs. Phil‑Japan Industrial Manufacturing Corporation, respondent, G.R. Nos. 169745 and 170091, July 18, 2014, Supreme Court Second Division, Del Castillo, J., writing for the Court.

The cases were consolidated because both presented the same central question: whether Section 17, Rule VIII of Department Order No. 40‑03 (prohibiting appeal from an order granting a certification election in an unorganized establishment) conflicted with Article 259 of the Labor Code. In each matter, a Med‑Arbiter ordered certification elections; the employers (Namboku and Phil‑Japan) appealed to the Secretary of Labor, who denied relief by letter‑resolution citing Section 17, and the employers then sought certiorari relief in the Court of Appeals (CA).

In G.R. No. 169745 (Namboku), PALCEA‑SUPER filed a petition for direct certification election claiming a supermajority among the 155 rank‑and‑file employees; Namboku contended these were project employees and thus not eligible. The Med‑Arbiter (Zosima C. Lameyra) ruled the employees were regular and ordered an election (June 17, 2003). Namboku appealed to the Secretary of Labor; the Secretary issued a letter‑resolution (October 22, 2003) affirming the Med‑Arbiter and denying Namboku’s motion to defer the election based on Section 17. Namboku filed certiorari in the CA (CA‑G.R. SP No. 80603) challenging the Secretary’s disposition and the constitutionality of Section 17. The CA (March 18, 2005) granted the petition, found the employees were project employees, and declared Section 17 invalid as contrary to Article 259. The CA later denied the Secretary’s motion for reconsideration and sustained its ruling that the Secretary was a nominal party.

In G.R. No. 170091 (Phil‑Japan), PJWU‑SUPER petitioned for certification election claiming 69 of 100 rank‑and‑file were its members; Phil‑Japan argued many listed unionists were not its employees. The Med‑Arbiter (Clarissa G. Beltran‑Lerios) ordered an election (August 25, 2003), directing segregation of challenged votes. Phil‑Japan appealed to the Secretary, who declined to act pursuant to Section 17 and allowed the election to proceed. Phil‑Japan filed certiorari in the CA (CA‑G.R. SP No. 80106). The CA (January 19, 2005) reversed the Med‑Arbiter, found most of the alleged union members were not Phil‑Japan employees, and likewise declared Section 17 violative of Article 259...(Subscriber-Only)

Issues:

  • May the Secretary of Labor, as the public/quasi‑judicial respondent who rendered the decision below, invoke Rule 45 and file petitions for review on certiorari in the Supreme Court as a real party‑in‑interest?
  • Is Section 17, Rule VIII of Department Order No. 40‑03 (prohibiting appeals from orders granting certification elections in unorganized establishments) invalid as conflicting with Article 259 of the Labor Code?
  • May project employees be included in a certification election petition involving regular employees (i.e., are project and regular emplo...(Subscriber-Only)

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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