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    56 Electromat V Lagunzad - Digest

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    Nyla
    This case involves the validity of Department Order 40-03 which simplified the requirements for establishing local chapters of unions chartered by federations. The petitioner company argued D.O. 40-03 was unconstitutional as it diminished the registration requirements under the Labor Code. The lower courts dismissed the petition and affirmed the validity of D.O. 40-03. The Supreme Court ruled D.O. 40-03 was constitutional and a valid exercise of the rule-making power of the Department of Labor and Employment as it was consistent with encouraging affiliation with federations to enhance bargaining power and recognized distinctions in requirements for federations versus local chapters.

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    56 Electromat V Lagunzad - Digest

    Uploaded by

    Nyla
    188 views2 pages
    This case involves the validity of Department Order 40-03 which simplified the requirements for establishing local chapters of unions chartered by federations. The petitioner company argued D.O. 40-03 was unconstitutional as it diminished the registration requirements under the Labor Code. The lower courts dismissed the petition and affirmed the validity of D.O. 40-03. The Supreme Court ruled D.O. 40-03 was constitutional and a valid exercise of the rule-making power of the Department of Labor and Employment as it was consistent with encouraging affiliation with federations to enhance bargaining power and recognized distinctions in requirements for federations versus local chapters.

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    Electromat v Lagunzad

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    56 Electromat v Lagunzad - Digest

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    This case involves the validity of Department Order 40-03 which simplified the requirements for establishing local chapters of unions chartered by federations. The petitioner company argued D.O. 40-03 was unconstitutional as it diminished the registration requirements under the Labor Code. The lower courts dismissed the petition and affirmed the validity of D.O. 40-03. The Supreme Court ruled D.O. 40-03 was constitutional and a valid exercise of the rule-making power of the Department of Labor and Employment as it was consistent with encouraging affiliation with federations to enhance bargaining power and recognized distinctions in requirements for federations versus local chapters.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    188 views2 pages

    56 Electromat V Lagunzad - Digest

    Uploaded by

    Nyla
    This case involves the validity of Department Order 40-03 which simplified the requirements for establishing local chapters of unions chartered by federations. The petitioner company argued D.O. 40-03 was unconstitutional as it diminished the registration requirements under the Labor Code. The lower courts dismissed the petition and affirmed the validity of D.O. 40-03. The Supreme Court ruled D.O. 40-03 was constitutional and a valid exercise of the rule-making power of the Department of Labor and Employment as it was consistent with encouraging affiliation with federations to enhance bargaining power and recognized distinctions in requirements for federations versus local chapters.

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    Electromat v Lagunzad (Labor Relations)

    ELECTROMAT MANUFACTURING and RECORDING CORPORATION v LAGUNZAD G. R. No.


    172699 July 27, 2011

    Validity of DO 40‐03

    FACTS:

    The private respondent Nagkakaisang Samahan ng Manggagawa ng Electromat‐Wasto


    (union), a charter affiliate of the Workers Advocates for Struggle, Transformation and
    Organization (WASTO), applied for registration with the Bureau of Labor Relations (BLR).
    The BLR thereafter issued the union a Certification of Creation of Local Chapter (equivalent
    to the certificate of registration of an independent union), pursuant to Department Order
    No. (D.O.) 40‐03.[4]

    On October 1, 2003, the petitioner Electromat Manufacturing and Recording Corporation


    (company) filed a petition for cancellation of the union's registration certificate, for the
    union's failure to comply with Article 234 of the Labor Code. It argued that D.O. 40‐03 is an
    unconstitutional diminution of the Labor Code's union registration requirements under
    Article 234. Specifically, it assails as unconstitutional Section 2(E), Rule III of D.O. 40‐03
    which provides:

    The report of creation of a chartered local shall be accompanied by a charter certificate


    issued by the federation or national union indicating the creation or establishment of the
    chartered local.

    DECISION OF LOWER COURTS: * DOLE: dismissed the petition. * BLR Director: affirmed
    the decision of the DOLE. * CA: affirmed BLR Director.

    ISSUE: WON the Department order is constitutional or whether D.O. 40‐03 is a valid
    exercise of the rule‐making power of the DOLE.

    APPLICABLE LAWS: Article 234 states:

    ART. 234. Requirements of Registration.[13] Any applicant labor organization, association


    or group of unions or workers shall acquire legal personality and shall be entitled to the
    rights and privileges granted by law to legitimate labor organizations upon issuance of the
    certificate of registration based on the following requirements:

    (a) Fifty pesos (P50.00) registration fee;

    (b) The names of its officers, their addresses, the principal address of the labor
    organization, the minutes of the organizational meetings and the list of the workers who
    participated in such meetings;

    (c) The names of all its members comprising at least twenty percent (20%) of all the
    employees in the bargaining unit where it seeks to operate;

    (d) If the applicant union has been in existence for one or more years, copies of its annual
    financial reports; and

    (e) Four (4) copies of the constitution and by‐laws of the applicant union, minutes of its
    adoption or ratification, and the list of the members who participated in it.

    RULING: YES, constitutional.

    D.O. 40‐03 represents an expression of the government's implementing policy on trade


    unionism. It builds upon the old rules by further simplifying the requirements for the
    establishment of locals or chapters. As in D.O. 9, we see nothing contrary to the law or the
    Constitution in the adoption by the Secretary of Labor and Employment of D.O. 40‐03 as
    this department order is consistent with the intent of the

    government to encourage the affiliation of a local union with a federation or national union
    to enhance the local's bargaining power. If changes were made at all, these were those
    made to recognize the distinctions made in the law itself between federations and their local
    chapters, and independent unions; local chapters seemingly have lesser requirements
    because they and their members are deemed to be direct members of the federation to
    which they are affiliated, which federations are the ones subject to the strict registration
    requirements of the law.

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