Case Summary (G.R. No. 79025)
Procedural Background
On June 21, 1985, BWLU-ADLO petitioned the BLR med-arbiter for direct certification as sole and exclusive bargaining representative of BENECO’s 214 rank-and-file employees, alleging overwhelming support (92.5%) and absence of any existing collective bargaining representative or agreement.
Opposition and Preliminary Motions
BELU opposed, claiming prior certification by a 1980 med-arbiter order and pending NLRC cases raising bargaining deadlock and unfair labor practice issues, which it argued barred any new representation question. BENECO moved to dismiss, contending that its employee-members and co-owners of the cooperative are ineligible to form or join labor organizations.
Med-Arbiter’s Order on Voter Eligibility
On September 2, 1985, the med-arbiter granted the petition but confined the electorate to 37 rank-and-file employees who were neither members nor co-owners of the cooperative. BENECO and BELU appealed; both appeals were dismissed for lack of merit by the BLR and by a subsequent Supreme Court minute resolution (G.R. No. 74209, April 28, 1986).
Certification Election and Protest
A certification election was held on October 1, 1986. Despite prior limitation to 37 eligible voters, 83 employees voted, and BELU secured 49 valid votes. BENECO protested the inclusion of member-consumers as voters; the med-arbiter dismissed the protest on February 17, 1987. On June 23, 1987, Director Ferrer-Calleja affirmed the order and certified BELU as exclusive bargaining agent.
Petition for Certiorari before the Supreme Court
BENECO filed a petition for certiorari alleging grave abuse of discretion by the BLR director. The Solicitor General supported BENECO’s position. The Supreme Court gave due course on April 19, 1989 and required memoranda.
Issue
Did the BLR director gravely abuse discretion by certifying BELU when ineligible cooperative members had participated in the certification election?
Governing Law
– 1987 Philippine Constitution: right to self-organization and collective bargaining
– Labor Code (Presidential Decree No. 442), Art. 256: valid certification elections require at least a majority of all eligible voters; the union with the majority of valid votes is certified exclusive bargaining agent.
– Presidential Decree No. 175: special nature and privileges of cooperatives
Respondents’ Arguments
The BLR director and BELU maintained that employee-members do not exercise managerial powers and remain rank-and-file; thus they retain constitutional rights to self-organization and collective bargaining. BELU further warned that excluding nominal cooperative members could encourage employers to dilute union rights through minor stock or profit-sharing schemes.
Supreme Court’s Analysis
The Court reaffirmed its ruling in Cooperative Rural Bank of Davao City, Inc. v. Ferrer-Calleja (G.R. No. 77951, September 26, 1988) and related cases:
– A cooperative’s members are co-owners. An owner cannot bargain with himself or co-owners; hence, member-employees are ineligible to join or assist a labor organization for collective bargaining with
Case Syllabus (G.R. No. 79025)
Procedural Background
- June 21, 1985: BWLU-ADLO filed a petition for direct certification as sole and exclusive bargaining representative of all rank-and-file employees of BENECO at Alapang, La Trinidad, Benguet.
- Opposition by BELU: Claimed prior certification (October 20, 1980 med-arbiter order) and pending NLRC cases on bargaining deadlock and unfair labor practice.
- BENECO’s motion to dismiss: Argued it is a nonprofit cooperative; employee-members are co-owners and thus ineligible to form or join labor organizations.
- September 2, 1985 med-arbiter order: Gave due course to petition but restricted electorate to 37 rank-and-file employees who were non-members and non-owners.
- March 25, 1986: NLRC dismissed appeals by BELU and BENECO for lack of merit.
- April 28, 1986: SC dismissed BENECO’s certiorari (G.R. No. 74209) for lack of merit.
- October 1, 1986: Certification election held; BENECO protested eligibility of member-consumers to vote.
- February 17, 1987: Med-arbiter dismissed BENECO’s protest, citing prior SC ruling in G.R. No. 74209.
- June 23, 1987: BLR Director Ferrer-Calleja affirmed med-arbiter’s order, certifying BELU.
- April 19, 1989: SC docketed the instant certiorari petition (G.R. No. 79025) and required memoranda.
Facts
- BENECO employed 214 rank-and-file workers; 198 (92.5%) supported BWLU-ADLO’s petition.
- No certification election or collective bargaining agreement existed in the preceding 12 months.
- Med-arbiter found only 37 employees who were neither members nor co-owners of the cooper