Title
Associated Labor Unions vs. Ferrer-Calleja
Case
G.R. No. 85085
Decision Date
Nov 6, 1989
ALU contested NAFLU's certification election petition after PASAR's CBA expired. SC ruled NAFLU's petition valid, dismissing ALU's claims, emphasizing workers' right to self-organization.

Case Summary (G.R. No. 85085)

Applicable Law

The case revolves around the interpretation of the Labor Code of the Philippines, particularly Articles 256 and 257, regarding the conditions for holding certification elections in organized establishments. Article 256 provides the framework for representation issues where a certified bargaining agent already exists, while Article 257 pertains specifically to unorganized establishments.

Background of the Case

Prior to this case, the collective bargaining agreement (CBA) between ALU and PASAR expired on April 1, 1987. On March 23, 1987, NAFLU filed a petition for a certification election, claiming no election had occurred within the previous twelve months, which triggered legal contention regarding representation. Initially, the Med-Arbiter dismissed NAFLU’s petition on April 21, 1987, but this dismissal was subsequently overturned in May 1987, establishing a stay against PASAR and ALU entering a new CBA until the representation issue was resolved.

Procedural History

Petitioner ALU finalized negotiations for a new CBA with PASAR on July 24, 1987, and the agreement was ratified on July 28, 1987, despite the ongoing representation dispute. The Bureau of Labor Relations later ordered a certification election among the rank-and-file employees, a move challenged by both parties leading to this petition for certiorari on grounds of procedural impropriety and misapplication of law regarding union representation and election standards.

Main Issues

The critical issue at hand is whether the contract bar rule applies when a CBA was hastily concluded in defiance of the Med-Arbiter's directive against such action until the representation issue was settled. Petitioner argues that according to Article 257 of the Labor Code, a certification election is unnecessary as ALU had established majority support.

Court's Analysis and Ruling

The Court dismissed ALU’s petition, emphasizing that certification proceedings do not adhere to strict legal formalities but instead focus on fact-finding for the purpose of ascertaining employee preferences regarding union representation. It clarified that Article 257 concerning support signatures applies only in unorganized settings and ruled that where a certified bargaining agent exists, the petition for certification simply requires timely filing.

The Court noted that NAFLU’s petition was filed within the prescribed freedom period, rendering the contract bar rule inapplicable, as the CBA initiated by ALU was not certified when concluded. Furthermore, it stated that entering a new CBA while a certification election was pending and while under a Med-Arbiter's directive constituted bad faith and undermined the employees'

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