STA. LUCIA EAST COMMERCIAL CORPORATION vs. HON.

SECRETARY OF LABOR AND EMPLOYMEN

T and STA. LUCIA EAST COMMERCIAL CORPORATION WORKERS ASSOCIATION (CLUP LOCAL CHA
PTER), G.R. No. 162355 CARPIO, J.: August 14, 2009
On 2001, Confederated Labor Union of the Philippines (CLUP) instituted a petitio
n for certification election among the regular rankand-file employees of Sta. Lu
cia East Commercial Corporation (THE CORPORATION) and its Affiliates. The affili
ate companies included in the petition were SLE Commercial, SLE Department Store
, SLE Cinema, Robsan East Trading, Bowling Center, Planet Toys, Home Gallery and
Essentials. On August 2001, Med-Arbiter Bactin ordered the dismissal of the pet
ition due to inappropriateness of the bargaining unit. Later CLUP in its local c
hapter under THE CORPORATION reorganized itself and reregistered as CLUP-Sta. Lu
cia East Commercial Corporation Workers Association (herein THE UNION), limiting
its membership to the rankand-file employees of Sta. Lucia East Commercial Corp
oration. On the same date, THE UNION or THE UNION filed the instant petition for
certification election. It claimed that no certification election has been held
among them within the last 12 months prior to the filing of the petition, and w
hile there is another union registered covering the same employees, namely Samah
ang Manggawa sa SLEC [SMSLEC], it has not been recognized as the exclusive barga
ining agent of [THE CORPORATIONs] employees.
On November 2001, THE CORPORATION or THE CORPORATION filed a motion to dismiss t
he petition. It averred that it has voluntarily recognized SMSLEC as the exclusi
ve bargaining agent of its regular rank-and-file employees, and that collective
bargaining negotiations already commenced between them. THE CORPORATION argued t
hat the petition should be dismissed for violating the one year and negotiation
bar rules under the Omnibus Rules Implementing the Labor Code. The CBA between S
MSLEC and the corporation was ratified by its rank-and-file employees and regist
ered with DOLE. In the meantime, on December 2001, the union filed its Oppositio
n to THE CORPORATIONS Motion to Dismiss questioning the validity of the voluntary
recognition of [SMSLEC] by [THE CORPORATION] and their consequent negotiations
and execution of a CBA. According to [THE UNION], the voluntary recognition of [
SMSLEC] by [THE CORPORATION] violated the requirements for voluntary recognition
, i.e., non-existence of another labor organization in the same bargaining unit.
It pointed out that the time of the voluntary recognition on 20 July 2001, appe
llants registration which covers the same group of employees covered by Samahang
Manggagawa sa Sta. Lucia East Commercial, was existing and has neither been canc
elled or abandoned. The Med-Arbiters Ruling Med-Arbiter Bactin dismissed THE UNIO
Ns petition for direct certification on the ground of contract bar rule. The prio
r voluntary recognition of SMSLEC and the CBA between THE CORPORATION and SMSLEC
bars the filing of THE UNIONs petition for direct certification
THE UNION raised the matter to the Secretary. The Ruling of the Secretary of Lab
or and Employment The Secretary held that the subsequent negotiations and regist
ration of a CBA executed by THE CORPORATION with SMSLEC could not bar THE UNIONs
petition. THE UNION constituted a registered labor organization at the time of T
HE CORPORATIONs voluntary recognition of SMSLEC. THE CORPORATION then filed a pet
ition for certiorari before the appellate court. The Ruling of the Appellate Cou
rt The appellate court affirmed the ruling of the Secretary Issue: Whether THE C
ORPORATIONs voluntary recognition of SMSLEC was done while a legitimate labor org
anization was in existence in the bargaining unit. Held: The petition has no mer
it. Legitimate Labor Organization Article 212(g) of the Labor Code defines a lab
or organization as "any union or association of employees which exists in whole
or in part for the purpose of collective bargaining or of dealing with employers
concerning terms and conditions of employment." Upon compliance with all the do
cumentary requirements, the Regional Office or Bureau shall issue in favor of th
e applicant labor organization a certificate indicating that it is included in t
he roster of legitimate labor organizations.6 Any applicant labor organization s
hall acquire legal personality and shall be entitled to the rights and privilege
s granted by law to legitimate
labor organizations upon issuance of the certificate of registration.7 Bargainin
g Unit The concepts of a union and of a legitimate labor organization are differ
ent from, but related to, the concept of a bargaining unit. A bargaining unit is
a "group of employees of a given employer, comprised of all or less than all of
the entire body of employees, consistent with equity to the employer, indicated
to be the best suited to serve the reciprocal rights and duties of the parties
under the collective bargaining provisions of the law." The fundamental factors
in determining the appropriate collective bargaining unit are: (1) the will of t
he employees (Globe Doctrine); (2) affinity and unity of the employees interest,
such as substantial similarity of work and duties, or similarity of compensation
and working conditions (Substantial Mutual Interests Rule); (3) prior collectiv
e bargaining history; and (4) similarity of employment status. (eto yung importa
nt) The UNIONS initial problem was that they constituted a legitimate labor organ
ization representing a nonappropriate bargaining unit. However, The union subseq
uently re-registered as THE UNION, limiting its members to the rank-andfile of T
HE CORPORATION. THE CORPORATION cannot ignore the union was a legitimate labor o
rganization at the time of THE CORPORATIONs voluntary recognition of SMSLEC. THE
CORPORATION and SMSLEC cannot, by themselves, decide whether CLUP-THE CORPORATIO
N and its Affiliates Workers Union represented an appropriate bargaining unit. T
he inclusion in the union of disqualified employees is not among the grounds for
cancellation of registration, unless such inclusion is due to misrepresentation,
false statement or fraud under the circumstances The union having been validly
issued a certificate of registration, should be considered as having acquired ju
ridical personality which may not be attacked collaterally. The proper procedure
for THE CORPORATION is to file a petition for cancellation of certificate of re
gistration of CLUP-THE CORPORATION and its Affiliates Workers Union and not to i
mmediately commence voluntary recognition proceedings with SMSLEC.