SMB Sales Vs OPLE

process, it may adopt or devise means designed towards that goal.
So
long as a company's management prerogatives are exercised in good
faith for the advancement of the employer's interest and not for the
FIRST DIVISION purpose of defeating or circumventing the rights of the employees
under special laws or under valid agreements, this Court will uphold
them (LVN Pictures Workers vs. LVN, 35 SCRA 147; Phil.
[G.R. No. 53515. February 8, 1989.]
American Embroideries vs. Embroidery and Garment Workers, 26
SCRA 634; Phil. Re ning Co. vs. Garcia, 18 SCRA 110). San Miguel
SAN MIGUEL BREWERY SALES FORCE UNION Corporation's offer to compensate the members of its sales force
(PTGWO), petitioners, vs. HON. BLAS F. OPLE, as who will be adversely affected by the implementation of the CDS,
Minister of Labor and SAN MIGUEL by paying them a so-called "back adjustment commission" to make
CORPORATION, respondents. up for the commissions they might lose as a result of the CDS,
proves the company's good faith and lack of intention to bust their
union.
Lorenzo F . Miravite for petitioner.
Isidro D. Amoroso for New San Miguel Corp. Sales Force
Union. DECISION
Siguion Reyna, Montecillo & Ongsiako for respondent.
GRIÑO-AQUINO, J :
SYLLABUS
p
This is a petition for review of the Order dated February 28,

1. LABOR LAW; MANAGEMENT PREROGATIVE, 1980 of the Minister of Labor in Labor Case No. AJML-069-79,
VALIDLY EXERCISED IN approving the private respondent's marketing scheme, known as the
CASE AT BAR. — Public respondent was correct in holding that "Complementary Distribution System" (CDS), and dismissing the
the CDS is a valid exercise of management prerogatives: " Except as petitioner labor union's complaint for unfair labor practice.
limited by special laws, an employer is free to regulate, according On April 17, 1978, a collective bargaining agreement
to his own discretion and judgment, all aspects of employment, (effective on May 1, 1978 until January 31, 1981) was entered into
including hiring, work assignments, working methods, time, place by petitioner San Miguel Corporation Sales Force Union (PTGWO),
and manner of work, tools to be used, processes to be followed, and the private respondent, San Miguel Corporation, Section 1, of
supervision of workers, working regulations, transfer of employees, Article IV of which provided as follows:
work supervision, lay-off of workers and the discipline, dismissal
and recall of work. . . . (NLU vs. Insular La Yebana Co., 2 SCRA "Art. IV, Section 1. Employees within the appropriate
924; Republic Savings Bank vs. CIR, 21 SCRA 226, 235.)" bargaining unit shall be
(Perfecto V. Hernandez, Labor Relations Law, 1985 Ed., p. 44.)
Every business enterprise endeavors to increase its pro ts. In the
CD Technologies Asia, Inc. © 2018 cdasiaonline.com
entitled to a basic monthly compensation plus commission however was too insigni cant as to convince this O ce to
based on their respective sales." (p. 6, Annex A; p. 113, interpret that the innovation interfered with the worker's
Rollo.) right to self-organization.
In September 1979, the company introduced a marketing "Petitioner's conjecture that the new plan will sow
scheme known as the "Complementary Distribution System" (CDS) dissatisfaction from its ranks is already a prejudgment of
whereby its beer products were offered for sale directly to the plan's viability and effectiveness. It is like saying that
wholesalers through San Miguel's sales offices. the plan will not work out to the workers' [bene t] and
The labor union (herein petitioner) filed a complaint for therefore management must adopt a new system of
unfair labor practice in the Ministry of Labor, with a notice of strike marketing. But what the petitioner failed to consider is the
on the ground that the CDS was contrary to the existing marketing fact that corollary to the adoption of the assailed marketing
scheme whereby the Route Salesmen were assigned speci c technique is the effort of the company to compensate
territories within which to sell their stocks of beer, and wholesalers whatever loss the workers may suffer because of the new
had to buy beer products from them, not from the company. It was plan over and above than what has been provided in the
alleged that the new marketing scheme violates Section 1, Article IV collective bargaining agreement. To us, this is one
of the collective bargaining agreement because the introduction of indication that the action of the management is devoid of
the CDS would reduce the take-home pay of the salesmen and their any anti-union hues." (pp. 24-25, Rollo.) The dispositive
truck helpers for the company would be unfairly competing with part of the Minister's Order reads:
them. cdll
"WHEREFORE, premises considered, the notice of strike

The complaint led by the petitioner against the respondent led by the petitioner, San
company raised two issues: (1) whether the CDS violates the Miguel Brewery Sales Force Union-PTGWO is hereby
collective bargaining agreement, and (2) whether it is an indirect dismissed. Management however is hereby ordered to pay
way of busting the union. an additional three (3) months back adjustment
In its order of February 28, 1980, the Minister of Labor commissions over and above the adjusted commission
found: under the complementary distribution system." (p. 26,
Rollo.)
". . . We see nothing in the record as to suggest that the
unilateral action of the employer in inaugurating the new The petition has no merit. LLphil
sales scheme was designed to discourage union Public respondent was correct in holding that the CDS is a
organization or diminish its in uence, but rather it is valid exercise of management prerogatives:
undisputable that the establishment of such scheme was
part of its overall plan to improve e ciency and economy "Except as limited by special laws, an employer is free to
and at the same time gain pro t to the highest. While it regulate, according to his own discretion and judgment, all
may be admitted that the introduction of new sales plan aspects of employment, including hiring, work
somewhat disturbed the present set-up, the change assignments, working methods, time, place and manner of

work, tools to be used, processes to be followed,
supervision of workers, working regulations, transfer of
employees, work supervision, lay-off of workers and the
discipline, dismissal and recall of work. . . . (NLU vs.
Insular La Yebana Co., 2 SCRA 924;
Republic Savings Bank vs. CIR, 21 SCRA 226, 235.)"
(Perfecto V. Hernandez, Labor Relations Law, 1985 Ed.,
p. 44.) (Emphasis ours.)
Every business enterprise endeavors to increase its profits. In
the process, it may adopt or devise means designed towards that
goal. In Abott Laboratories vs. NLRC, 154 SCRA 713, We ruled:
". . . Even as the law is solicitous of the welfare of the
employees, it must also protect the right of an employer to
exercise what are clearly management prerogatives. The
free will of management to conduct its own business
affairs to achieve its purpose cannot be denied."
So long as a company's management prerogatives are
exercised in good faith for the advancement of the employer's
interest and not for the purpose of defeating or circumventing the
rights of the employees under special laws or under valid
agreements, this Court will uphold them (LVN Pictures Workers vs.
LVN, 35 SCRA 147; Phil. American Embroideries vs. Embroidery
and Garment Workers, 26 SCRA 634; Phil. Re ning Co. vs. Garcia,
18 SCRA 110). San Miguel Corporation's offer to compensate the
members of its sales force who will be adversely affected by the
implementation of the CDS, by paying them a so-called "back
adjustment commission" to make up for the commissions they might
lose as a result of the CDS, proves the company's good faith and lack
of intention to bust their union. cdrep
WHEREFORE, the petition for certiorari is dismissed for

lack of merit.
SO ORDERED.
Narvasa, Cruz, Gancayco and Medialdea, JJ., concur.

SMB Sales Vs OPLE

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process, it may adopt or devise means designed towards that goal.

This is a petition for review of the Order dated February 28,

"WHEREFORE, premises considered, the notice of strike

CD Technologies Asia, Inc. © 2018 cdasiaonline.com

WHEREFORE, the petition for certiorari is dismissed for

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