G.R. No. 111262 - San Miguel Corp. Employees Union vs. Confesor

Petitioner: San Miguel Corporation Employees Union-PTGWO, represented by its president Raymundo Hipolito, Jr.
Respondents: Hon. Ma. Nieves D. Confesor (Secretary of Labor), San Miguel Corporation (SMC), Magnolia Corporation (formerly Magnolia Plant), and San Miguel Foods, Inc. (formerly B-MEG Plant).
Nature of Case: Petition for certiorari assailing the Order of the Secretary of Labor dated February 15, 1993, involving a labor dispute at SMC.

The petitioner-union entered into a CBA with SMC on June 28, 1990, to take effect upon expiration of the previous CBA on June 30, 1989.
CBA provisions on duration:

Section 1: Binding and effective until June 30, 1992.
Section 2: Representation aspect to last five years (July 1, 1989 to June 30, 1994) with a 60-day freedom period prior to June 30, 1994.
Section 3: Sixty days prior to June 30, 1992, parties may initiate negotiations on all provisions, except representation; if no agreement, CBA remains in force until a subsequent agreement is reached.

On August 13, 1991, SMC management informed employees of restructuring for business expansion.
Effective October 1, 1991, Magnolia and Feeds and Livestock Division were spun-off forming two separate corporations: Magnolia Corporation and San Miguel Foods, Inc. (SMFI).
Notwithstanding the spin-offs, the original CBA remained in force.

After June 30, 1992, CBA renegotiated pursuant to its terms and Article 253-A of the Labor Code.
Petitioner-union insisted the bargaining unit include employees of Magnolia and SMFI and that the new CBA be effective only for two years until June 30, 1994.
SMC contended that employees who moved to Magnolia and SMFI ceased to be part of SMC’s bargaining unit and that the CBA should be effective for three years per Article 253-A.
Parties reached deadlock on September 29, 1992.
On October 2, 1992, petitioner filed a Notice of Strike. Preventive mediation failed to settle the dispute.
Strike vote conducted on November 3, 1992, with majority in favor.
On November 4, 1992, private respondents filed a petition for the Secretary of Labor to assume jurisdiction over dispute in a vital industry, which was granted on November 10, 1992.
Several conciliation meetings held without resolution.

On February 15, 1993, the Secretary of Labor ordered that the renegotiated terms of the CBA be effective for three years from June 30, 1992, and cover only SMC employees, excluding Magnolia and SMFI employees.
Petitioner-union questioned this Order via this petition for certiorari.

March 30, 1995, petitioner-union filed a motion for temporary restraining order (TRO) or preliminary injunction to enjoin certification elections in all companies, claiming Magnolia and SMFI employees are within SMC’s bargaining unit.
TRO was granted on March 29, 1995.
The Samahan ng Malayang Manggagawa-San Miguel Corporation-Federation of Free Workers (SMM-SMC-FFW) moved to intervene, citing a precedent case recognizing Magnolia’s employees’ separation from SMC bargaining unit, praying for lifting of TRO.
Efren Carreon, acting president of the SMCEU-PTGWO, petitioned for withdrawal/dismissal of the petition, questioning Raymundo Hipolito’s legal personality as union president due to his dismissal.

Whether the duration of the renegotiated terms of the CBA should be three years or only for the remaining two years aligned with the term of the bargaining agency.
Whether the bargaining unit of SMC includes the employees of Magnolia Corporation and San Miguel Foods, Inc. following their spin-off as separate corporations.