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    (1.) San Miguel Brewery Sales Force Union (Digest)

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    Dom Robinson Baggayan
    The union alleged that San Miguel Corporation's new "Complementary Distribution System" marketing scheme violated their collective bargaining agreement by reducing salesmen's commissions and take-home pay. The Supreme Court ruled that the new system was a valid exercise of the company's managerial prerogative since it was implemented in good faith to advance business interests, not defeat employee rights. The company's offer to pay affected salesmen additional commissions showed it acted in good faith without intent to undermine the union.

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    © All Rights Reserved
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    (1.) San Miguel Brewery Sales Force Union (Digest)

    Uploaded by

    Dom Robinson Baggayan
    55 views1 page
    The union alleged that San Miguel Corporation's new "Complementary Distribution System" marketing scheme violated their collective bargaining agreement by reducing salesmen's commissions and take-home pay. The Supreme Court ruled that the new system was a valid exercise of the company's managerial prerogative since it was implemented in good faith to advance business interests, not defeat employee rights. The company's offer to pay affected salesmen additional commissions showed it acted in good faith without intent to undermine the union.

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    (1.) San Miguel Brewery Sales Force Union(Digest)

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    The union alleged that San Miguel Corporation's new "Complementary Distribution System" marketing scheme violated their collective bargaining agreement by reducing salesmen's commissions and take-home pay. The Supreme Court ruled that the new system was a valid exercise of the company's managerial prerogative since it was implemented in good faith to advance business interests, not defeat employee rights. The company's offer to pay affected salesmen additional commissions showed it acted in good faith without intent to undermine the union.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    55 views1 page

    (1.) San Miguel Brewery Sales Force Union (Digest)

    Uploaded by

    Dom Robinson Baggayan
    The union alleged that San Miguel Corporation's new "Complementary Distribution System" marketing scheme violated their collective bargaining agreement by reducing salesmen's commissions and take-home pay. The Supreme Court ruled that the new system was a valid exercise of the company's managerial prerogative since it was implemented in good faith to advance business interests, not defeat employee rights. The company's offer to pay affected salesmen additional commissions showed it acted in good faith without intent to undermine the union.

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    © All Rights Reserved
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    San Miguel Brewery Sales Force Union(PTGWO) vs. Hon.

    Blas Ople
    G.R. No. L-53515, February 8, 1989

    FACTS:

    For 3 years, a collective bargaining agreement was being im


    plemented by San Miguel Corporation Sales Force Union (PTGW
    O), and San Miguel Corporation. Section 1, of Article IV of
    which provided “Employees within the appropriate bargainin
    g unit shall be entitled to a basic monthly compensation pl
    us commission based on their respective sales.”

    Then, the company introduced a marketing scheme known as “C


    omplementary Distribution System”(CDS) whereby its beer products
    were offered for sale directly to wholesalers through San Migue
    l’s Sales Offices.

    The union alleged that the new marketing scheme violates Se


    c 1, Art IV of the CBA because the introduction of the CDS would
    reduce the take home pay of the salesmen.

    ISSUE:

    Whether or not the new marketing scheme should be upheld co


    nsidering that the act was unilaterally made by the employer.

    RULING:

    Yes, because it is a valid exercise of managerial prerogati


    ve. So long as a company’s management prerogatives are exercised
    in good faith for the advancement of the employer’s interest an
    d not for the purpose of defeating or circumventing the rights o
    f the employees under special laws or under valid agreements, th
    is Court will uphold them. San Miguel Corporation’s offer to com
    pensate the members of its sales force who will be adversely aff
    ected by the implementation of the CDS by paying them a so-
    called “back adjustment commission” to make up for the commissio
    ns they might lose as a result of the CDS proves the company’s g
    ood faith and lack of intention to bust their union.

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