Unorganized Establishment

Art. [242] 251

Art. [257] 269 Petitions in Unorganized Establishments

Case No. 2.

Celine Marketing Corp. vs. Laguesma, 205 SCRA 849 (GR No. 97568, Feb. 4, 1992)

CELINE MARKETING CORPORATION, petitioner,

vs.
HON. BIENVENIDO E. LAGUESMA, UNDERSECRETARY OF LABOR AND EMPLOYMENT and CONFEDERATION
OF FILIPINO WORKERS (CFW), respondents.

Jesus C. Gentiles for petitioner.

Ponente: GRIO-AQUINO, J.:

FACTS:

Confederation of Filipino Workers (or CFW) filed a petition that it be certified as the exclusive bargaining agent of all the
rank-and-file employees of Celine Marketing Corp.

The petition was amended to include all the rank-and file employees of Celine Marketing Corp. in its outlets at
Landmark-Makati; Shoppesville-Greenhills; SM-North; Ginza-Esperanza-Shoe Mart; SM Car Park-Celine Marketing; Gold
Crest-Makati, etc. comprising more or less 100 employees.

Celine Marketing Corp. moved to dismiss the petition on the grounds that the CFW had not been authorized by a majority
of the rank-and file employees, and that it failed to submit a copy of the charter certificate issued to the local union.

At the hearing before the Labor Arbiter, CFW submitted a xerox copy of the charter certificate issued to its local union,
"Celine Marketing Corp. Workers Chapter-CFW

Celine Marketing Corp. moved to strike it from the records for non-production of the original and for lack of proof that the
organizational documents of the union had been filed with the Bureau of Labor Relations. Med-Arbiter dismissed the
petition on those grounds.

CFW appeared the order to the Sec. of Labor and Employment, who, through Undersecretary Bienvenido Laguesma,
granted the appeal.

A new order is entered directing the conduct of a certification election among the rank-and-file employees of Celine
Marketing Corporation/Ginza Esperanza, and all its outlets at Landmark-Makati; Shoppesville-Greenhills: SM-North. Ginza
Esperanza Shoe Mart, SM-Car Park-Celine Marketing; Gold Crest-Makati-Celine Makati; Greenbelt-Celine; Makati Ginza
Esperanza-Tesoro Building; Mabini-Celine Mabini; Escolta-Celine Escolta; Escolta Ginza Esperanza Escolta with the
following choices:

1. CFW-Celine Marketing Corp. Workers Chapter: and

2. No Union.

Then forwarded the same to the Office of origin for the conduct of certification election.

However, Celine Marketing Corporation filed a petition for certiorari to review the resolution of Undersecretary ordering
the holding of a certification election on the grounds that:
 1. The Undersecretary of Labor & Employment erred in setting aside the Med-Arbiter's order despite the failure of the
CFW to comply with the mandatory requirements in Section 3. Rule II. Book V of the Omnibus Rules and Regulations
of the Labor Code as amended.

SECTION 3. Union affiliation; direct membership with national union. An affiliate of a labor federation or
national union may be a local or chapter thereof or an independently registered union.

(a) The labor federation or national union concerned shall issue a charter certificate indicating the creation or
establishment of a local or chapter, copy of which shall be submitted to the Bureau of Labor Relations within
thirty (30) days from issuance of such charter certificate.

(b) An independently registered union shall be considered an affiliate of a labor federation or national union
after submission to the Bureau of the contract or agreement of affiliation within thirty (30) days after its
execution.

(c) All existing labor federations or national unions are required to submit a list of all their affiliates, their
addresses and including the names and addresses of their respective officials, to the Bureau within thirty (30)
days from effectivity of these Rules.

(d) All existing labor federations or national unions with direct members are required to organize said members
into locals or chapters in their respective companies or establishments within sixty (60) days from effectivity of
these Rules.

(e) The local or chapter of a labor federation or national union shall have and maintain constitution and by-
laws, set of officers and books of accounts. For reporting purposes, the procedure governing the reporting of
independently registered unions, federations or national unions shall be observed.

(f) No person who is not an employee or worker of the company or establishment where an independently
registered union, affiliate, local or chapter of a labor federation or national union operates shall henceforth be
elected or appointed as an officer of such union, affiliate, local or chapter.
ISSUE:

W/N the petition for certification election can be filed by CFW in behalf of Celine Marketing Corporation despite the fact
that CFW is not authorized by a majority of the rank-and file employees, and that it failed to submit a copy of the charter
certificate issued to the local union.

RULING:

Yes, CFW can file a petition for certification election.

Even if there is an absence of the authority from majority of rank-and-file employee of Celine Marketing Corp. for CFW to
file a petition for certification election, the authorization of a majority of the rank-and file employees or their consent is
not necessary when the bargaining unit that the union seeks to represent, is still unorganized. The petition for
certification election may be filed by any union, not by the employees.

Thus, Article 257 of the Labor Code, as amended by R.A. 6715, provides:

Art. 257. Petitions in unorganized establishments. In any establishment where there is no certified bargaining
agent, a certification election shall automatically be conducted by the Med-Arbiter upon the filing of a petition by a
legitimate labor organization.

The law assumes that the union (here the CFW) is the real party in interest in a petition for certification election. Anyway,
the certification election itself is the appropriate forum for the employees to express their choice of a bargaining
representative or none at all.