Title
Liberty Cotton Mills Workers Union vs. Liberty Cotton Mills, Inc.
Case
G.R. No. L-33987
Decision Date
Sep 4, 1975
Workers disaffiliated from PAFLU, leading to unjustified dismissal; Supreme Court ruled disaffiliation valid, ordered reinstatement, and held PAFLU liable for back wages.

Case Summary (G.R. No. L-34948-49)

Factual Background

The Union adopted its Constitution and By-Laws on January 1, 1959, and entered into a Collective Bargaining Agreement (CBA) with Liberty Cotton Mills on October 1, 1959. The CBA recognized PAFLU as the sole bargaining agent for the Union’s members and included a Union Security Clause mandating continuous union membership for employment. The CBA was amended on February 28, 1964, further solidifying the relation between the Union and PAFLU.

Events Leading to Disaffiliation

On March 13, 1964, union officers expressed dissatisfaction concerning PAFLU's legal representation in an unfair labor practice (ULP) case. On May 17, 1964, thirty-two of the thirty-six members disaffiliated from PAFLU, citing grievances regarding the federation's support. The Union formally requested that the company direct dues collection to its own treasurer post-disaffiliation.

PAFLU's Response to Disaffiliation

In response, PAFLU issued a letter to Liberty Cotton Mills, asserting that the disaffiliation was inconsistent with the existing CBA and designated the actions of the disaffiliating members as disloyalty. Subsequently, PAFLU requested the termination of the five petitioners who were instrumental in the disaffiliation.

Termination of Employment

Following PAFLU's recommendation, Liberty Cotton Mills terminated the employment of the petitioners on May 30, 1964. The petitioners sought reinstatement through a complaint for unfair labor practice with the Court of Industrial Relations, which ultimately dismissed their complaint but recommended their reinstatement.

Legal Issues Presented

The petitioners raised significant legal questions, including the validity of the disaffiliation from PAFLU, whether such disaffiliation constituted disloyalty warranting expulsion from both the Union and subsequent termination, and if PAFLU had the authority to expel local union members under its Constitution and By-Laws.

Analysis of Collective Bargaining Agreement

The Supreme Court analyzed the CBA and noted that PAFLU served as a bargaining agent, while the Union remained a distinct entity capable of disaffiliation. The court highlighted that the right to disaffiliate, as supported by the Union’s Constitution, was inherent and could not be construed as disloyalty, especially considering the members' collective dissatisfaction with PAFLU's representation.

Ruling on Disaffiliation and Dismissal

The dismissal of the petitioners was found to be unjustified. The justices noted that the majority's disaffiliation indicated a legitimate exercise of their rights as union members. Despite the PAFLU's claims, the court determined that the retraction of disaffiliation happened post-dismissal, and thus did not affect the validity of the initial disaffiliation.

Conclusion and Dire

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