Title
San Jose City Electric Service Cooperative, Inc. vs. Ministry of Labor and Employment
Case
G.R. No. 77231
Decision Date
May 31, 1989
Employees of an electric cooperative who are also member-consumers cannot form labor unions for collective bargaining, as they are co-owners; non-member-consumer employees retain the right to organize.

Case Digest (G.R. No. 77231)
Expanded Legal Reasoning Model

Facts:

  • Petition for Direct Certification Election: On July 29, 1986, MAGKAISA-ADLO, a legitimate labor organization, filed a petition for direct certification election with the Department of Labor and Employment (DOLE) Regional Office No. III in San Fernando, Pampanga. The petition sought to represent 54 rank-and-file employees of SAJELCO, alleging that 62% of the employees supported the petition, no certification election had been held in the past 12 months, and no other union existed in the bargaining unit.
  • SAJELCO’s Opposition: SAJELCO opposed the petition, arguing that the employees seeking representation were also member-consumers of the cooperative. They contended that these employees, as members of the General Assembly, had dual roles (employees and members) and could not fairly represent themselves in collective bargaining. SAJELCO also cited its By-laws, which provide that only member-consumers or their immediate family members could be employed by the cooperative.
  • Med-Arbiter’s Order: On September 5, 1986, the Med-Arbiter granted the petition for direct certification election, ruling that the employees, despite being member-consumers, were still employees under the Labor Code and entitled to the right to self-organization.
  • Appeal to the Bureau of Labor Relations: SAJELCO appealed the Med-Arbiter’s decision, reiterating its argument that the dual roles of employees as member-consumers made collective bargaining ineffective. The Bureau of Labor Relations dismissed the appeal and upheld the Med-Arbiter’s decision.
  • Certiorari Petition: SAJELCO filed a petition for certiorari with the Supreme Court, seeking to reverse the Bureau of Labor Relations’ order. Meanwhile, a direct certification election was conducted on April 13, 1987, where 30 out of 43 employees voted in favor of MAGKAISA-ADLO.
  • Solicitor General’s Comment: The Solicitor General supported SAJELCO’s position, arguing that employees who are also member-consumers cannot bargain with themselves and that such employees are akin to co-owners who are ineligible to form or join labor unions.

Issues:

The primary issue in this case is whether employees of an electric cooperative who are also member-consumers can organize themselves for purposes of collective bargaining.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

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