Case Title Philippine Phosphate Fertilizer Corp. vs.

Torres
G.R. no. 98050
Main Topic Due Process
Other Related Topic Labor Code; Labor Unions
Date: March 17, 1994

DOCTRINES

1. Labor Law; Due Process; The essence of the due process is simply an opportunity to be
heard, or as applied to administrative proceedings, an opportunity to explain one’s side or
an opportunity to seek a reconsideration of the action or ruling complained of.

2. Labor Unions; A supervisory union cannot represent the professional/technical and

confidential employees of petitioner whose positions we find to be more of the rank and
file than supervisory.

3. R.A. 6715; Classification of employees; enacted March 1989, employees were thereunder
reclassified into three (3) groups, namely: (a) managerial employees, (b) supervisory
employees, (c) rank and file employees. The category of supervisory employees is once
again recognized in the present law.

4. Labor Code, Art. 212; Supervisory employee defined. – Art. 212, par. (m), of the Labor
Code, as amended, provides that “(s)upervisory employees are those who, in the interest
of the employer, effectively recommend such managerial actions if the exercise of such
authority is not merely routinary or clerical in nature but requires the use of independent
judgement.” The definition of managerial employees is limited to those having authority
to hire and fire, while those who only recommend effectively the hiring or firing or
transfer of personnel are considered closer to rank and file employees. The exclusion
therefore of mid-level executives from the category of managers has brought about a
third classification, the supervisory employees. The peculiar role of supervisors is such
that while they are not managers, when they recommend action implementing
management policy or ask for the discipline or dismissal of subordinates, they identify
with the interests of the employer and may act contrary to the interests of the rank and
file.

5. Labor Unions; Labor Code, Art. 245; as amended by R.A. No. 6715, to wit: x x x x
Managerial employees are not eligible to join, assist or form any labor organization.
Supervisory employees shall not be eligible for membership in a labor organization of the
rank and file employees but may join, assist or form separate labor organizations of their
own.
 FACTS:
Philippine Phosphate Fertilizer Corporation (PHILPHOS); Petitioner;
Assails the decision of the Secretary of Labor of August 7, 1990; affirming the order of the
Mediator-Arbiter of March 28, 1990 which directed the immediate conduct of a certification
election among the supervisory, professional or technical, and confidential employees of the
petitioner corporation.

Philphos Movement for Progress, Inc. (PMPI); Respondent;

On July 7, 1989 filed with the Department of Labor and Employment a petition for certification
election among the supervisory employees of the petitioner.

The petition for certification election filed by PMPI was not opposed by PHILPHOS.

PHILPHOS, submitted a position paper with the Mediator-Arbiter that its management
welcomed the creation of a supervisory employees’ union provided the necessary requisite of
law were properly observed.

Petitioner prayed for the exclusion of its superintendents and professional/technical employees
from the PMPI supervisory union.

Mediator-Arbiter Rodolfo S. Milado, issued an order directing and holding of a certification

election among the supervisory employees of petitioner, excluding therefrom the superintendents
and the professional and technical employees.

PMPI filed an amended petition with the Mediator-Arbiter that the professional/technical and
confidential employees of PHILPHOS be included as members. The petition was affirmed by the
Mediator-Arbiter, and Secretary of Labor through Undersecretary Bienvenido Laguesma.

Under the Labor Code, Article 212, Supervisory employee defined – “(s)upervisory employees
are those who, in the interest of the employer, effectively recommend such managerial actions if
the exercise of such authority is not merely routinary or clerical in nature but requires the use of
independent judgement.”

Personnel records showed that there are 125 supervisors and 271 professional/technical
employees, where 150, of the 271employees, are being supervised.
ISSUE:
Main Issue: Whether or not petitioner was denied due process in the proceedings before
respondent Mediator-Arbiter?

Sub Issue: Whether or not the professional/technical and confidential employees may validly join
PMPI union which is composed of supervisors?
HELD:
Main Issue:
No. Petitioner was not denied due process in the proceeding, because the essence of due process
is simply an opportunity to be heard or, as applied to administrative proceedings, an opportunity
to explain one’s side or an opportunity to seek a reconsideration of the action or ruling
complained of.

Sub Issue:
No, because under the Labor Code of the Philippines the professional/technical employees of
petitioner are classified as Rank and File employees. However, confidential employees are
included in the supervisory union. The petitioner showed no proof or compelling reason to
exclude them.

Petition is GRANTED. The decision of Secretary of Labor and Mediator-Arbiter is set aside.
Professional/Technical employees of PHILPHOS are declared disqualified from affiliating with
PMPI.