Case Summary (G.R. No. 171153)
Procedural History
• July 6, 1999: BLR issues certificate of creation for SMPPEU-PDMP as a local chapter.
• August 17, 1999: SMCEU-PTGWO petitions DOLE-NCR to cancel respondent’s registration for fraud, non-compliance with 20% membership requirement, and misrepresentation.
• July 14, 2000: DOLE-NCR orders cancellation of SMPPEU-PDMP’s registration for failing to meet the 20% threshold.
• February 19, 2001: BLR reverses, holding that chartered locals need not comply with the 20% rule and that PDMP may directly charter a local under Department Order No. 9.
• March 9, 2005: Court of Appeals affirms the BLR decision.
• January 16, 2006: CA denies reconsideration.
• September 12, 2007: Supreme Court grants SMCEU-PTGWO’s Rule 45 petition.
Issue
Whether a trade union center–chartered local like SMPPEU-PDMP must satisfy the 20% membership requirement and whether PDMP (a trade union center) may directly create a local chapter under Department Order No. 9.
Applicable Law
• 1987 Constitution (freedom of association, social justice)
• Labor Code of the Philippines, Articles 234(c) (registration requirements), 239 (grounds for cancellation), 242 (rights of legitimate labor organizations), 212(h) (definition of legitimate labor organization)
• Implementing Rules Book V, Department Order No. 9 (1997), Department Order No. 40 series (2003–2005)
• Supreme Court Rule 45 (petition for certiorari)
Ruling
The petition is GRANTED. The CA decision of March 9, 2005 is REVERSED and SET ASIDE. The Certificate of Registration of SMPPEU-PDMP is CANCELLED, and it is DROPPED from the roster of legitimate labor organizations.
Rationale
- Chartered Locals vs. Independent Unions
– Under Department Order No. 9, only a duly registered federation or national union may directly create a local chapter by filing a charter certificate, officers’ list, and constitution and by-laws.
– Article 234(c) 20% membership requirement applies exclusively to independent unions seeking initial registration, not to chapters of federations or national unions. - Expressio Unius Est Exclusio Alterius
– Department Order No. 9 expressly limits direct chartering authority to federations and national unions. The omission of “trade union center” excludes it from chartering powers. - Trade Union Center Legitimacy
– PDMP’s status as a duly registered
Case Syllabus (G.R. No. 171153)
Antecedent Facts
- Petitioner SMCEU-PTGWO has been the certified bargaining agent (1987–1997) for all regular monthly-paid rank-and-file employees of San Miguel Corporation’s three divisions (SMCSU, SMBP, SMPP), including the Laguna plant.
- Respondent SMPPEU-PDMP was issued Charter Certificate No. 112 by its parent organization PDMP on June 15, 1999, and obtained a Certificate of Creation of Local (PDMP-01) from the BLR on July 6, 1999.
- SMPPEU-PDMP filed three separate certification-election petitions covering each division; DOLE-NCR dismissed them for fragmenting a single bargaining unit.
- On August 17, 1999, SMCEU-PTGWO petitioned DOLE-NCR to cancel SMPPEU-PDMP’s registration, alleging fraud, misrepresentation, non-compliance with Articles 239(a)–(c) and 234(c) of the Labor Code, and asserting that PDMP (a trade union center) lacked power to charter a local directly.
- DOLE-NCR dismissed fraud allegations but found SMPPEU-PDMP failed the 20% membership requirement under Article 234(c), ordered its certificate canceled and removal from legitimate-union rolls.
- SMPPEU-PDMP appealed to the Bureau of Labor Relations (BLR); on February 19, 2001, the BLR reversed cancellation, holding (a) chartered locals need not meet the 20% rule, and (b) PDMP, as a registered trade union center with Certificate No. FED-11558-LC, could directly create a chapter.
- BLR denied SMCEU-PTGWO’s motion for reconsideration on June 19, 2001; SMCEU-PTGWO filed a Rule 65 certiorari petition (CA-G.R. SP No. 66200) in the Court of Appeals.
- The Court of Appeals, on March 9, 2005, affirmed the BLR: SMPPEU-PDMP validly chartered, no 20%-membership requirement; denied reconsideration on January 16, 2006.
- SMCEU-PTGWO filed a Rule 45 petition in the Supreme Court, challenging CA’s refusal to require SMPPEU-PDMP to submit names of 20% of employees and impugning PDMP’s power to charter.
Procedural History
- DOLE-NCR Regional Director’s Order (July 14, 2000): cancellation for non-compliance with 20% rule.
- BLR Decision (Feb. 19, 2001): reversed cancellation, upheld chartering by PDMP, dispensed with 20% membership.
- BLR Resolution (June 19, 2001): denied petitioner’s reconsideration.
- CA De