Manila Electric Company v. Secretary of Labor and Employment

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Manila Electric Company v.

Secretary of Labor and Employment


May 20, 1991

Doctrine: Security guards may now join labor organizations, dependning on their rank.

On November 22, 1988, the Staff and Technical Employees Association of MERALCO
(STEAM-PCWF), a labor organization of staff and technical employees of MERALCO, filed a
petition for certification election, seeking to represent regular employees of MERALCO. 

MERALCO moved for the dismissal of the petition on the grounds that the employees
sought to be represented by petitioner are either 
 managerial [according to MERALCO employees with SG VII and above are managerial]
who are prohibited by law from forming or joining supervisory union, 
 security services personnel who are prohibited from joining or assisting the rank-and-file
union, 
 secretaries who do not consent to the petitioner’s representation and whom petitioner
cannot represent, and 
 rank-and-file employees represented already by the certified or duly recognized
bargaining representative of the only rank-and-file bargaining unit in the company.

Are employees with pay grade  VII  and up managerial? NO

Employees belonging to Pay Grades VII and up are supervisory. In fact the petition itself of
petitioner Manila Electric Company on page 9, paragraph 3 of the petition stated as follows, to
wit: There was no need for petitioner to prove that these employees are not rank-and-file. As
adverted to above, the private respondents admit that these are not the rank-and-file but  the
supervisory employees, whom they seek to represent. 
In fact, although employees with Pay Grade XV carry the Rank of Department
Managers, these employees only enjoy the Rank Manager but their recommendatory powers
are subject to evaluation, review and final action by the department heads and other higher
executives of the company. 

Can security guards join rank-and-file or supervisors union? YES

While under the old rules security guards were barred from joining a labor organization of the
rank and file, under RA 6715, they may now freely join a labor organization of the rank and file
or that of the supervisory union, depending on their rank.

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