Case Digest Topic: Union Registration Requirements
Case Digest Topic: Union Registration Requirements
Case Digest Topic: Union Registration Requirements
FA C TS:
From 1987 to 1997 (20 years), Petitioner is a certified bargaining agent o f th e th r e e d iv is io n s of Sa n Mig u e l
C o r p or a tio n ( SMC ) a n d in a ll o ffic e s a n d p la n ts o f SMC . W h ile r e s p o n d en t is r e g is te r e d a s c h a p te r o f
Pambansang Diwa ng Manggagawang Pilipino (PDMP).
Respondent, after Certificate of Creation of Local Chapter has been issued by BLR, filed three separate petitions for certification
election to represent SMPP, SMCSU and SMBP before Med-Arbiter of DOLE NCR but said petitions were dismissed on ground
that the separate petitions fragmented a single bargaining unit. Petitioner filed with DOLE NCR petition seeking the cancellation
of respondent registration and its dropping from the rolls of legitimate Labor Organizations. Petitioner alleged respondent of
committing fraud and falsification, and non-compliance with registration requirements in obtaining its certificate of registration and
violated Articles 239 (a), (b) and (c) and 234 (c) of Labor Code AND PDMP is not a legitimate labor organization but a trade
union center thus it cannot create a local or chapter.
DOLE-NCR Regional Director Lim found that respondent did not comply with the 20% membership requirement and
ordered the cancellation of its certificate of registration and removal from the roll of legitimate labor organizations and
dismissed other allegations. Thus, respondent appealed to BLR. On the other hand, BLR reversed the decision of DOLE-NCR
Director ruling that Respondent should not be removed from roll of legitimate labor organizations. And, the motion for
reconsideration has been denied. On appeal to CA, dismissed the petition and affirmed the decision of BLR.
Petition for certiorari has been filed. And, petitioner alleged that respondent, in order to be legitimate, must submit a list of
members comprising at least 20% of employees in bargaining unit as provided in Article 234(c) of Labor Code. The 20%
requirement for registration of respondent must be based on the numbers of ALL THREE DIVISIONS of company and in all
offices and not on a single division of SMC since they are all part of one bargaining unit. Hence, respondent failed to comply
such requirement since the membership is only based on the number of employees of single division only not from all divisions.
ISSUE:
WON Respondent did comply requirements to be a legitimate Labor organization.
RULING:
NO. Respondent failed to comply with the requirements set forth by law in order to be a legitimate labor organization for the
following: Petitioner claims that Section 3 of the Implementing Rules, as amended by Department Order No. 9, violated Article
234 of the Labor Code when it provided for less stringent requirements for the creation of a chapter or local. Article 234 of
the Labor Code provides that an independent labor organization acquires legitimacy only upon its registration with the BLR: xxx
3) The names of all its members comprising at least twenty percent (20%) of all the employees in the bargaining unit where it
seeks to operate; xxx The foregoing pertains to the registration of an independent labor organization, association or group of
unions or workers.
However, the creation of a branch, local or chapter is treated differently. This Court declared that when an unregistered union
becomes a branch, local or chapter, some of the aforementioned requirements for registration are no longer necessary or
compulsory. Whereas an applicant for registration of an independent union is mandated to submit, among other things, the
number of employees and names of all its members comprising at least 20% of the employees in the bargaining unit
where it seeks to operate, as provided under Article 234 of the Labor Code and Section 2 of Rule III, Book V of the
Implementing Rules, the same is no longer required of a branch, local or chapter. The intent of the law in imposing less
requirements in the case of a branch or local of a registered federation or national union is to encourage the affiliation of a local
union with a federation or national union in order to increase the local unions bargaining powers respecting terms and conditions
of labor.
Although PDMP as a trade union center is a legitimate labor organization, it has no power to directly create a local or
chapter. Thus, SMPPEU-PDMP cannot be created under the more lenient requirements for chartering, but must have complied
with the more stringent rules for creation and registration of an independent union, including the 20% membership requirement.