Capitol Medical Center V Trajano

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Capitol Medical Center., petitioner, vs. Hon.

Cresenciano B. Trajano and Capitol Medical


Center Employees Association-AFW,
respondents.
GR No. 155690, June 30, 2005
Germaine Suzette C. Austero
Case No. 234 - LaborRev

DOCTRINES:

Collective Bargaining: The pendency of a petition for cancellation of union registration


does not preclude collective bargaining.

Jurisdiction of the Secretary DOLE: The discretion to assume jurisdiction may be exercised
by the Secretary of Labor and Employment without the necessity of prior notice or hearing
given to any of the parties.

FACTS:

Capitol Medical Center, Inc. is a hospital and Capitol Medical Center Employees
Association-Alliance of Filipino Workers, is a duly registered labor union acting as the
certified collective bargaining agent of the rank-and-file employees of petitioner hospital.

On October 2, 1997, the union, through its president, sent the petitioner a letter requesting
a negotiation of their CBA. In its reply, the petitioner refused to bargain with the
respondent and challenged the union’s legitimacy. Subsequently, the petitioner filed a
petition for cancellation of the respondent’s certificate of registration before the Bureau of
Labor Relations.

On October 29, 1997, the respondent filed a notice of strike with the National Conciliation
and Mediation Board, alleging that the petitioner’s refusal to bargain constitutes unfair
labor practice. On November 28, 1997, the respondent staged a strike.

On December 4, 1997, former Labor Secretary Leonardo Quisumbing issued an order


assuming jurisdiction over the labor dispute and ordering all striking workers to return to
work and the management to resume normal operations.

1
Meantime, on October 1, 1998, the Regional Direction issued an Order denying the petition
for cancellation of respondent union’s certificate of registration.

The CA rendered a decision affirming the Labor Secretary’s Order and denied the
petitioner’s motion for reconsideration.

ISSUES:

1. WON the petition for cancellation of respondent’s union certificate of registration


involves a prejudicial question that should first be settled before the Secretary of
Labor could order parties to bargain collectively. (NO)
2. WON the Secretary of Labor may practice his powers without observing the
requirements of due process. (YES)

RULING:

1.

The petition for cancellation of the respondent’s certificate of registration does not involve
a prejudicial question.

The Secretary of Labor ruled that the pendency of a petition for cancellation of union
registration does not preclude collective bargaining. Moreover,as mentioned earlier, the RD
issued an order denying the petition for cancellation of respondent’s certificate of
registration during the pendency of the case before the CA. This order became final and
executory on June 3, 1999.

2.

In Magnolia Poultry Employees Union v Sanchez, the Court held that the discretion to assume
jurisdiction may be exercised by the Secretary of Labor and Employment without the
necessity of prior notice or hearing given to any of the parties. The rationale for his primary
assumption of jurisdiction can justifiably rest on his own consideration of the exigency of
the situation in relation to the national interests.

Hence, the petition for review on certiorari is DENIED.

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