Académique Documents
Professionnel Documents
Culture Documents
Laguesma
G.R. No. 110399 | August 15, 1997
Petitioners: San Miguel Corporation Supervisors And Exempt Union & Ernesto L. Ponce (President)
Respondent: Hon. Bienvenido E. Laguesma (DOLE Undersecretary), Hon. Danilo L. Reynante (Med-Arbiter) & San
Miguel Corporation
Ponente: J. Romero
Summary: SMC Supervisors and Exempt Union filed before DOLE a Petition for Certification Election among the
supervisors and exempt employees of the SMC Magnolia Poultry Products Plants of Cabuyao, San Fernando and
Otis. Med-Arbiter Reynante then ordered their conduct of certification as one bargaining unit. But San Miguel
appealed with DOLE contending that (1) the 3 separate plants should not be grouped into one bargaining unit, and
(2) supervisory levels 3 and 4 (S3 & S4) should be excluded because these positions are confidential in nature. After
2 Motion for Reconsiderations, Undersecretary Laguesma applied Philips Industrial Development, Inc. v. NLRC which
declared confidential employees ineligible from forming or joining a labor union. He ordered S3, S4 and the so-called
exempt employees to be excluded from those participating in the certification election, and directed the conduct of
separate certification elections in each of the 3 plants.
The SC held that S3, S4 and the exempt employees do not fall within the term confidential employees who may be
prohibited from joining a union. To be a confidential employee, 2 criteria must be met: he (1) assists or acts in a
confidential capacity, (2) to persons who formulate, determine, and effectuate management policies in the field of
labor relations. In other words, he must have necessary access to confidential information with respect to his
employers labor relations policies. In the case at bar, S3, S4 and the exempt employees handle confidential
information which relate to product formulation, product standards and product specification which concerns the
employers internal business operations and not to the field of labor relations. Moreover, SC held that the employees
of the 3 plants constitute an appropriate single bargaining unit for they have community or mutuality of interest,
performing work of the same nature and receiving the same wages and compensation although belonging to 3
different plants of the Magnolia Poultry Division of San Miguel.
FACTS:
San Miguel Corporation Supervisors and Exempt Union (SMC Union) filed before DOLE a Petition for
Certification Election among the supervisors and exempt employees of the SMC Magnolia Poultry Products
Plants of Cabuyao (Laguna), San Fernando (Pampanga) and Otis (Pandacan, Manila).
o Med-Arbiter Reynante issued an Order ordering their conduct of certification as one bargaining unit.
Appeal: San Miguel Corp. then filed with the DOLE a Notice of Appeal pointing out Med-Arbiters error in
grouping together all 3 separate plants into one bargaining unit, and in including supervisory levels 3 and 4
whose positions are confidential in nature.
o Undersecretary Laguesma: granted. Ordered the remand of the case to the Med-Arbiter for determination of
the true classification of each of the employees sought to be included in the appropriate bargaining unit.
st
S3, S4 and the exempt employees are NOT vested with the powers and prerogatives to lay down and execute
management policies and/or to hire, transfer, suspend, layoff, recall, discharge or dismiss employees.
o They are therefore not qualified to be classified as managerial employees who under Art. 245 of the Labor
Code, are not eligible to join, assist or form any labor organization.
o Under the same Article, they are not allowed membership in a labor organization of the rank-and-file
employees BUT may join, assist or form separate labor organizations of their own.
SUB-ISSUE: If they are not confidential employees, do the employees of the 3 plants constitute an appropriate single
bargaining unit. YES.
RATIO:
The employees in the instant case have community or mutuality of interest. which is the standard in
determining the proper constituency of a collective bargaining unit.
o They all belong to the Magnolia Poultry Division of San Miguel Corporation. Although they belong to 3
different plants, they perform work of the same nature, receive the same wages and compensation, and
most importantly, share a common stake in concerted activities. The fact that the 3 plants are located in 3
different places is immaterial.
Moreover, separate bargaining units in the 3 different plants of the division will fragmentize the employees of the
said division, thus greatly diminishing their bargaining leverage. This will clearly frustrate the provisions of the
Labor Code and the mandate of the Constitution.
DECISION: WHEREFORE, the the assailed Order or Undersecretary Laguesma is hereby SET ASIDE and the Order
of the Med-Arbiter is REINSTATED under which a certification election among the supervisors (level 1 to 4) and
exempt employees of the San Miguel Corporation Magnolia Poultry Products Plants of Cabuyao, San Fernando, and
Otis as one bargaining unit is ordered conducted.