Title
San Miguel Corp. Employees Union-PTGWO vs. San Miguel Packaging Products Employees Union-PDMP
Case
G.R. No. 171153
Decision Date
Sep 12, 2007
A labor union's legitimacy was contested over 20% membership compliance and authority to charter locals, leading to its registration cancellation.

Case Digest (G.R. No. 171153)
Expanded Legal Reasoning Model

Facts:

  • Parties and Background
    • Petitioner SAN MIGUEL CORPORATION EMPLOYEES UNION–PHILIPPINE TRANSPORT AND GENERAL WORKERS ORGANIZATION (SMCEU-PTGWO)
      • Certified bargaining agent (1987–1997) for regular rank-and-file employees of San Miguel Corporation’s three divisions: Corporate Staff Unit (SMCSU), Brewing Philippines (SMBP) and Packaging Products (SMPP).
    • Respondent SAN MIGUEL PACKAGING PRODUCTS EMPLOYEES UNION–PAMBANSANG DIWA NG MANGGAGAWANG PILIPINO (SMPPEU-PDMP)
      • Chartered as a chapter of Pambansang Diwa ng Manggagawang Pilipino (PDMP); Charter Certificate No. 112 issued 15 June 1999.
      • Certificate of Creation of Local/Chapter (PDMP-01) issued by the Bureau of Labor Relations (BLR) on 6 July 1999.
  • Administrative Proceedings
    • SMPPEU-PDMP petitions DOLE-NCR for three certification elections covering SMPP, SMCSU and SMBP; dismissed for fragmenting one bargaining unit.
    • SMCEU-PTGWO files petition (No. NCR-OD-9908-007-IRD) on 17 August 1999 to cancel SMPPEU-PDMP’s registration for alleged fraud/falsification and non-compliance with the 20% membership requirement under Article 234(c), Labor Code.
    • DOLE-NCR Regional Director orders cancellation on 14 July 2000 for failure to show 20% membership but dismisses fraud charges.
    • BLR Decision (19 February 2001) reverses cancellation: holds (a) chartered locals need not comply with the 20% requirement; (b) PDMP, though a trade union center, is a legitimate labor organization entitled to charter locals under Department Order No. 9.
    • BLR Resolution (19 June 2001) denies SMCEU-PTGWO’s motion for reconsideration.
  • Judicial Proceedings
    • SMCEU-PTGWO files Petition for Certiorari under Rule 65 with the Court of Appeals (CA-G.R. SP No. 66200); CA Decision (9 March 2005) affirms BLR, holds no 20% requirement for chartered locals.
    • CA Resolution (16 January 2006) denies motion for reconsideration.
    • SMCEU-PTGWO elevates case to the Supreme Court by Rule 45 petition, challenging the CA’s ruling that SMPPEU-PDMP need not submit names of 20% of employees.

Issues:

  • Whether a trade union center (PDMP) may directly create a local or chapter under Department Order No. 9 without fulfilling the 20% membership requirement of Article 234(c) of the Labor Code.
  • Whether SMPPEU-PDMP validly acquired legal personality as a legitimate labor organization without submitting the names of at least 20% of the employees in the bargaining unit.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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