On 29 July 1998, respondent submitted to the Bureau of subject to the usual pre-election conference, among the

SECOND DIVISION G.R. No. 152356. August 16, 2005 Labor Relations the same documents earlier attached to monthly-paid rank-and-file employees of the Mandaue
its petition for certification. The accompanying letter, Packaging Products Plant San Miguel Corporation, with
SAN MIGUEL CORPORATION (MANDAUE signed by respondent’s president Sagun, stated that the following choices:
PACKAGING PRODUCTS PLANTS), Petitioners, vs. such documents were submitted in compliance with the
MANDAUE PACKING PRODUCTS PLANTS-SAN requirements for the creation of a local/chapter pursuant 1. MANDAUE PACKAGING PRODUCT PLANT SAN
PACKAGING PRODUCTS –SAN MIGUEL to the Labor Code and its Implementing Rules; and it MIGUEL PACKAGING PRODUCTS SAN MIGUEL
CORPORATION MONTHLIES RANK-AND-FILE UNION was hoped that the submissions would facilitate the CORPORATION MONTHLIES RANK AND FILE
– FFW (MPPP-SMPP-SMAMRFU-FFW), Respondent. listing of respondent under the roster of legitimate labor UNION–FFW (MPPP-SMPP-SMCMRFUFFW),
organizations.5 On 3 August 1998, the Chief of Labor
D E C I S I O N TINGA, J.: Relations Division of DOLE Regional Office No. VII 2. NO UNION.
issued a Certificate of Creation of Local/Chapter No. ITD.
The central question in this Petition for Review is on I-ARFBT-058/98, certifying that from 30 July 1998, Pursuant to Rule XI, Section 11.1 of the New
what date did respondent Mandaue Packing Products respondent has acquired legal personality as a labor Implementing Rules, the company is hereby directed to
Plants-San Miguel Packaging Products–San Miguel organization/worker’s association, it having submitted all submit to the office of origin the certified list of current
Corporation Monthlies Rank-And-File Union–FFW the required documents.6 employees in the bargaining unit, along with the payrolls
acquire legal personality in accordance with the covering the members of the bargaining unit for the last
Implementing Rules of the Labor Code. The matter is Opting not to file a comment on the Motion to Dismiss,7 three months prior to the issuance of this decision.
crucial since respondent filed a petition for certification respondent instead filed a Position Paper wherein it
election at a date when, it is argued, it had yet to acquire asserted that it had complied with all the necessary SO DECIDED.13
the requisite legal personality. The Department of Labor requirements for the conduct of a certification election,
and Employment (DOLE) and the Court of Appeals both and that the ground relied upon in the Motion to Dismiss These two conclusions of the DOLE were affirmed in the
ruled that respondent had acquired legal personality on was a mere technicality.8 assailed Decision of the Court of Appeals. It is now our
the same day it filed the petition for certification election. task to review whether these conclusions are warranted
The procedure employed by the respondent did not In turn, petitioner filed a Comment, wherein it reiterated under law and jurisprudence. First, we shall discuss the
strictly conform with the relevant provisions of law. But that respondent was not a legitimate labor organization aspect of respondent’s legal personality in filing the
rather than insist on an overly literal reading of the law at the time of the filing of the petition. Petitioner also petition for certification election.
that senselessly suffocates the constitutionally propounded that contrary to respondent’s objectives of
guaranteed right to self-organization, we uphold the establishing an organization representing rank-and-file First Issue: On the Acquisition of
assailed decisions and the liberal spirit that animates employees, two of respondent’s officers, namely
them. Vice-President Emannuel L. Rosell and Secretary Legal Personality by Respondent
Bathan, were actually supervisory employees. In support
Antecedent Facts of this allegation, petitioner attached various documents Statutory Provisions for Registration Of
evidencing the designation of these two officers in
The present petition assailed the Decision dated 7 June supervisory roles, as well as their exercise of various
Local/Chapter of Federation or National Union
2001 rendered by the Court of Appeals Eighth Division1 supervisory functions.9 Petitioner cited Article 245 of the
which in turn affirmed a Decision dated 22 Feburary Labor Code, which provides that supervisory employees
Before we proceed to evaluate the particular facts of this
1999 by the DOLE Undersecretary for Labor Relations, shall not be eligible for membership in a labor
10 case, it would be useful to review the statutory paradigm
Rosalinda Dimapilis-Baldoz, ordering the immediate organization of the rank-and-file employees.
that governs the establishment and acquisition of legal
conduct of a certification election among the petitioner’s personality by a local/chapter of a labor organization.
rank-and-file employees, as prayed for by respondent. On 20 August 1998, petitioner filed a petition to cancel
The applicable rules have undergone significant
The following facts are culled from the records. the union registration of respondent. However, this
amendments in the last decade, thus a recapitulation of
petition was denied, and such denial was subsequently
the framework is in order.
On 15 June 1998, respondent, identifying itself as an affirmed by the Court of Appeals in a decision that has
affiliate of Federation of Free Workers (FFW), filed a since become final.11
The Labor Code defines a labor organization as any
petition for certification election with the DOLE Regional union or association of employees which exists in whole
Office No. VII. In the petition, respondent stated that it In the meantime, on 15 September 1998, Med-Arbiter
or in part for the purpose of collective bargaining or of
sought to be certified and to represent the permanent Manit issued an Order dismissing respondent’s petition
dealing with employers concerning terms and conditions
rank-and-file monthly paid employees of the petitioner.2 for certification election. The sole ground relied upon for
of employment,14 and a "legitimate labor organization" as
The following documents were attached to the petition: the dismissal was the Med-Arbiter’s Opinion that as of
any labor organization duly registered with the DOLE,
(1) a Charter Certificate issued by FFW on 5 June 1998 the date of filing of the petition on 15 June 1998,
including any branch or local thereof.15 Only legitimate
certifying that respondent as of that date was duly respondent did not have the legal personality to file the
labor organizations may file a petition for certification
certified as a local or chapter of FFW; (2) a copy of the said petition for certification election.12 No discussion was
election.16
constitution of respondent prepared by its Secretary, adduced on petitioner’s claims that some of respondent’s
Noel T. Bathan and attested by its President, Wilfred V. officers were actually supervisory employees.
Article 234 of the Labor Code enumerates the
Sagun; (3) a list of respondent’s officers and their requirements for registration of an applicant labor
respective addresses, again prepared by Bathan and Respondent promptly appealed the 15 September 1998
organization, association, or group of unions or workers
attested by Sagun; (4) a certification signifying that Order to the DOLE. On 22 February 1999, DOLE
in order that such entity could acquire legal personality
respondent had just been organized and no amount had Undersecretary Rosalinda Dimapilis-Baldoz rendered a
and entitlement to the rights and privileges granted by
yet been collected from its members, signed by Decision reversing the Order. Undersecretary Baldoz
law to legitimate labor organizations. These include a
respondent’s treasurer Chita D. Rodriguez and attested concluded that respondent acquired legal personality as
registration fee of fifty pesos (₱50.00); a list of the
by Sagun; and (5) a list of all the rank-and-file monthly early as 15 June 1998, the date it submitted the required
names of the members and officers, and copies of the
paid employees of the Mandaue Packaging Products documents, citing Section 3, Rule VI of the New Rules
constitution and by-laws of the applicant union.17
Plants and Mandaue Glass Plant prepared by Bathan Implementing the Labor Code (Implementing Rules)
and attested by Sagun.3 which deems that a local/chapter acquires legal
However, the Labor Code itself does not lay down the
personality from the date of filing of the complete
procedure for the registration of a local or chapter of a
The petition was assigned to Mediator-Arbiter Achilles V. documentary requirements as mandated in the
labor organization. Such has been traditionally provided
Manit of the DOLE Regional Office No. VII, and docketed Implementing Rules. The DOLE also ruled that the
instead in the Implementing Rules, particularly in Book V
as Case No. R0700-9806-RU-013.4 contention that two of respondent’s officers were actually
thereof. However, in the last decade or so, significant
supervisors can be threshed out in the pre-election
amendments have been introduced to Book V, first by
On 27 July 1998, petitioner filed a motion to dismiss the conferences where the list of qualified voters is to be
Department Order No. 9 which took effect on 21 June
petition for certification election on the sole ground that determined. The dispositive portion of the DOLE
1997, and again by Department Order No. 40 dated 17
herein respondent is not listed or included in the roster of Decision stated:
February 2003. The differences in the procedures laid
legitimate labor organizations based on the certification down in these various versions are significant. However,
issued by the Officer-In-Charge, Regional Director of the WHEREFORE, the appeal is GRANTED. The order
since the instant petition for certification was filed in
DOLE Regional Office No. VII, Atty. Jesus B. Gabor, on dated 15 September 1999 of the Med-Arbiter is
1998, the Implementing Rules, as amended by
24 July 1998. REVERSED and SET ASIDE. Accordingly, let the
Department Order No. 9, should govern the resolution of
records of the case be remanded to the office of origin
this petition.18
for the immediate conduct of certification election,
Preliminarily, we should note that a less stringent In contrast, an independent union seeking registration is mandated to accept just any purported charter certificate
procedure obtains in the registration of a local or chapter further required under Dept. Order No. 90 to submit the matter how spurious it is in appearance. It is empowered
than that of a labor organization. Undoubtedly, the intent number and names of the members, and annual financial to ascertain whether the submitted charter certificate is
of the law in imposing lesser requirements in the case of reports.27 genuine, and if finding that said certificate is fake, deny
a branch or local of a registered federation or national recognition to the local/chapter.
union is to encourage the affiliation of a local union with Section 3, Rule VI of Department Order No. 9 provides
a federation or national union in order to increase the when the local/chapter acquires legal personality. However, in ascertaining whether or not to recognize and
local union's bargaining powers respecting terms and register the local/chapter, the Bureau or Regional Office
conditions of labor.19 This policy has remained consistent Section 3. Acquisition of legal personality by local should not look beyond the authenticity and due
despite the succeeding amendments to Book V of the chapter. – A local/chapter constituted in accordance with execution of the documentary requirements for the
Omnibus Implementing Rules, as contained in Section 1 of this Rule shall acquire legal personality from creation of the local/chapter as enumerated under
Department Orders Nos. 9 and 40. the date of filing of the complete documents enumerated Section 1, Rule VI, Book V of Department Order No. 9.
therein. Upon compliance with all the documentary Since the proper submission of these documentary
The case of Progressive Development Corp. v. Secretary requirements, the Regional Office or Bureau shall issue requirements is all that is necessary to recognize a
of Labor,20 applying Section 3, Rule II, Book V of the in favor of the local/chapter a certificate indicating that it local/chapter, it is beyond the province of the Bureau or
Implementing Rules, in force before 1997, ruled that "a is included in the roster of legitimate labor organizations. Regional Offices to resort to other grounds as basis for
local or chapter therefore becomes a legitimate labor denying legal recognition of the local/chapter. For
organization only upon submission of the following to the It is evident based on this rule that the local/chapter example, Department Order No. 9 does not require the
BLR: (1) a charter certificate, within thirty (30) days from acquires legal personality from the date of the filing of local/chapter to submit the names of its members as a
36
its issuance by the labor federation or national union; the complete documentary requirements, and not from condition precedent to its registration. It therefore would
and (2) The constitution and by-laws, a statement of the the issuance of a certification to such effect by the be improper to deny legal recognition to a local/chapter
set of officers, and the books of accounts all of which are Regional Office or Bureau. On the other hand, a labor owing to questions pertaining to its individual members
certified under oath by the secretary or treasurer, as the organization is deemed to have acquired legal since the local/chapter is not even obliged to submit the
case may be, of such local or chapter, and attested to by personality only on the date of issuance of its certificate names of its individual members prior to registration.
its president."21 of registration,28 which takes place only after the Bureau
of Labor Relations or its Regional Offices has Certainly, when a local/chapter applies for registration,
The submission by the local/chapter of duly certified undertaken an evaluation process lasting up until thirty matters raised against the personality of the federation or
books of accounts as a prerequisite for registration of the (30) days, within which period it approves or denies the national union itself should not be acted upon by the
local/chapter was dropped in Department Order No. 9,22 application.29 In contrast, no such period of evaluation is Bureau or Regional Office, owing to the preclusion of
a development noted by the Court in Pagpalain Haulers provided in Department Order No. 9 for the application of collateral attack. Instead, the proper matter for evaluation
v. Hon. Trajano,23 wherein it was held that the previous a local/chapter, and more importantly, under it such by the Bureau or Regional Office should be limited to
doctrines requiring the submission of books of accounts local/chapter is deemed to acquire legal personality whether the local/chapter is indeed a duly created
as a prerequisite for the registration of a local/chapter "from the date of filing" of the documents enumerated affiliate of the national union or federation.
"are already passé and therefore, no longer under Section 1, Rule VI, Book V.
applicable."24 Parenthetically, under the present Implementing Rules
Apart from promoting a policy of affiliation of local unions as amended by Department Order No. 40, it appears that
Department Order No. 40, now in effect, has eased the with national unions,30 there is a practical reason for the local/chapter (or now, "chartered local") acquires
requirements by which a local/chapter may acquire legal sanctioning a less onerous procedure for the registration legal personality upon the issuance of the charter
personality. Interestingly, Department Order No. 40 no of a local/chapter, as compared to the national union. certificate by the duly registered federation or national
longer uses the term "local/chapter," utilizing instead The local/chapter relies in part on the legal personality of union.37 This might signify that the creation of the
"chartered local," which is defined as a "labor the federation or national union, which in turn, had chartered local is within the sole discretion of the
organization in the private sector operating at the already undergone evaluation and approval from the federation or national union and thus beyond the review
enterprise level that acquired legal personality through Bureau of Legal Relations or Regional Office. In fact, a or interference of the Bureau of Labor Relations or its
the issuance of a charter certificate by a duly registered federation or national union is required, upon Regional Offices. However, Department Order No. 40
federation or national union, and reported to the registration, to establish proof of affiliation of at least ten also requires that the federation or national union report
Regional Office."25 Clearly under the present rules, the (10) locals or chapters which are duly recognized as the the creation of the chartered local to the Regional Office.
first step to be undertaken in the creation of a chartered collective bargaining agent in the establishment or
local is the issuance of a charter certificate by the duly industry in which they operate; and the names and Acquisition by Respondent of Legal Personality
registered federation or national union. Said federation or addresses of the companies where the locals or chapters
national union is then obligated to report to the Regional operate and the list of all the members in each of the We now proceed to determine if and when the
Office the creation of such chartered local, attaching companies.31 Once the national union or federation respondent acquired legal personality under the
thereto the charter certificate it had earlier issued.26 acquires legal personality upon the issuance of its procedure laid down by the rules then in effect,
certificate or registration,32 its legal personality cannot be Department Order No. 9, that is.
But as stated earlier, it is Department Order No. 9 that subject to collateral attack.33
governs in this case. Section 1, Rule VI thereof At the onset, the arguments raised by petitioner on this
prescribes the documentary requirements for the The fact that the local/chapter acquires legal personality point are plainly erroneous. Petitioner cites the case of
creation of a local/chapter. It states: from the moment the complete documentary Toyota Motor Philippines v. Toyota Motor Philippines
requirements are submitted seems to imply that the duty Corporation Labor Union,38 and the purported holding
Section 1. Chartering and creation of a local chapter — A of the Bureau or Regional Office to register the therein that "[if] it is true that at the time of the filing of the
duly registered federation or national union may directly local/chapter is merely ministerial. However, in petition, the said registration certificate has not been
create a local/chapter by submitting to the Regional Progressive Development Corporation v. Laguesma,34 approved yet, then, petitioner lacks the legal personality
Office or to the Bureau two (2) copies of the following: the Court, in ruling against a petition for certification filed to file the petition."39 However, an examination of the
by a chapter, held that the mere submission of the case actually reveals that the cited portion was lifted
a) A charter certificate issued by the federation or documentary requirements does not render ministerial from one of the antecedent rulings of the Med-Arbiter in
national union indicating the creation or establishment of the function of the Bureau of Labor Relations in that case which had not even been affirmed or reinstated
the local/chapter; according due recognition to the labor organization.35 by the Court on review.40 Moreover, such pronouncement
Still, that case was decided before the enactment of made prior to the enactment of Department Order No. 9
(b) The names of the local/chapter's officers, their Department Order No. 9, including the aforestated squarely contradicts Section 3, Rule VI thereof, which
addresses, and the principal office of the local/chapter; Section 3. Should we consider the said 1997 provides that legal personality of the local/chapter is
amendments as having obviated our characterization in vested upon the submission of the complete
(c) The local/chapter's constitution and by-laws; provided Progressive of the Bureau’s duty as non-ministerial? documentary requirements.
that where the local/chapter's constitution and by-laws is
the same as that of the federation or national union, this Notwithstanding the amendments, it still is good policy to It is also worth noting that petitioner union in Toyota was
fact shall be indicated accordingly. maintain that per Department Order No. 9, the duty of an independent labor union, and not a local/chapter, and
the Bureau of Labor Relations to recognize the under Department Order No. 9, independent labor
All the foregoing supporting requirements shall be local/chapter upon the submission of the documentary unions, unlike local/chapters, acquire legal personality
certified under oath by the Secretary or Treasurer of the requirements is not ministerial, insofar as the Bureau is only upon issuance of the certificate of registration by the
local/chapter and attested by its President. obliged to adjudge the authenticity of the documents Bureau or Regional Office. Still, petitioner cites in its
required to be submitted. For example, the Bureau is not
favor Section 5, Rule V of Dept. Order No. 9, which Thus, in order to ascertain when respondent acquired no need for a separate set of by-laws to be submitted by
states that "the labor organization or workers’ legal personality, we only need to determine on what respondent.
association shall be deemed registered and vested with date the Regional Office or Bureau received the
legal personality on the date of issuance of its certificate complete documentary requirements enumerated under The Court likewise sees no impediment in deeming
of registration." Again, the citation is obviously Section 1, Rule VI of Department Order No. 9. There is respondent as having acquired legal personality as of 15
misplaced, as respondent herein is a local/chapter, the no doubt that on 15 June 1998, or the date respondent June 1998, the fact that it was the local/chapter itself,
acquisition of its legal personality being governed instead filed its petition for certification election, attached thereto
and not the FFW, which submitted the documents
by Section 3, Rule VI. were respondent’s constitution, the names and required under Section 1, Rule VI of Department Order
addresses of its officers, and the charter certificate No. 9. The evident rationale why the rule states that it is
It is thus very clear that the issuance of the certificate of issued by the national union FFW. The first two of these the federation or national union that submits said
registration by the Bureau or Regional Office is not the documents were duly certified under oath by documents to the Bureau or Regional Office is that the
operative act that vests legal personality upon a respondent’s secretary Bathan and attested to by creation of the local/chapter is the sole prerogative of the
local/chapter under Department Order No. 9. Such legal president Sagun.41 federation or national union, and not of any other entity.
personality is acquired from the filing of the complete Certainly, a putative local/chapter cannot, without the
documentary requirements enumerated in Section 1, It may be noted though that respondent never submitted imprimatur of the federation or national union, claim
Rule VI. Admittedly, the manner by which respondent a separate by-laws, nor does it appear that respondent affiliation with the larger unit or source its legal
was deemed to have acquired legal personality by the ever intended to prepare a set thereof. Section 1(c), Rule personality therefrom.
DOLE and the Court of Appeals was not in strict VI, Book V of Department Order No. 9 provides that the
conformity with the provisions of Department Order No. submission of both a constitution and a set of by-laws is In the ordinary course, it should have been FFW, and not
9. Nonetheless, are the deviations significant enough for required, or at least an indication that the local/chapter is respondent, which should have submitted the subject
the Court to achieve a different conclusion from that adopting the constitution and by-laws of the federation or documents to the Regional Office. Nonetheless, there is
made by the DOLE and the Court of Appeals? national union. A literal reading of the provision might no good reason to deny legal personality or defer its
indicate that the failure to submit a specific set of by-laws conferral to the local/chapter if it is evident at the onset
In regular order, it is the federation or national union, is fatal to the recognition of the local/chapter. A more that the federation or national union itself has already
already in possession of legal personality, which initiates critical analysis of this requirement though is in order, through its own means established the local/chapter. In
the creation of the local/chapter. It issues a charter especially as it should apply to this petition. this case, such is evidenced by the Charter Certificate
certificate indicating the creation or establishment of the dated 9 June 1998, issued by FFW, and attached to the
local/chapter. It then submits this charter certificate, By-laws has traditionally been defined as regulations, petition for certification election. The Charter Certificate
along with the names of the local/chapter’s officers, ordinances, rules or laws adopted by an association or expressly states that respondent has been issued the
constitution and by-laws to the Regional Office or corporation or the like for its internal governance, said certificate "to operate as a local or chapter of the
Bureau. It is the submission of these documents, including rules for routine matters such as calling [FFW]". The Charter Certificate expressly acknowledges
certified under oath by the Secretary or Treasurer of the meetings and the like.42 The importance of by-laws to a FFW’s intent to establish respondent as of 9 June
local/chapter and attested by the President, which vests labor organization cannot be gainsaid. Without such 1998.44 This being the case, we consider it permissible
legal personality in the local/chapter, which is then free to provisions governing the internal governance of the for respondent to have submitted the required
file on its own a petition for certification election. organization, such as rules on meetings and quorum documents itself to the Regional Office, and proper that
requirements, there would be no apparent basis on how respondent’s legal personality be deemed existent as of
In this case, the federation in question, the FFW, did not the union could operate. Without a set of by-laws which 15 June 1998, the date the complete documents were
submit any of these documentary requirements to the provides how the local/chapter arrives at its decisions or submitted.
Regional Office or Bureau. It did however issue a charter otherwise wields its attributes of legal personality, then
certificate to the putative local/chapter (herein every action of the local/chapter may be put into legal Second Issue: On the Alleged Presence
respondent). Respondent then submitted the charter controversy.
certificate along with the other documentary Of Supervisory Employees as
requirements to the Regional Office, but not for the However, if those key by-law provisions on matters such
specific purpose of creating the local/chapter, but for as quorum requirements, meetings, or on the internal Officers of the Respondent
filing the petition for certification election. governance of the local/chapter are themselves already
provided for in the constitution, then it would be feasible The second issue hinges on a point of some controversy
It could be properly said that at the exact moment to overlook the requirement for by-laws. Indeed in such and frequent discussion in recent years. Petitioner claims
respondent was filing the petition for certification, it did an event, to insist on the submission of a separate error in the common pronouncement in the assailed
not yet possess any legal personality, since the document denominated as "By-Laws" would be an decisions that the matter concerning the two officers who
requisites for acquisition of legal personality under undue technicality, as well as a redundancy. are allegedly supervisory employees may be threshed
Section 3, Rule VI of Department Order No. 9 had not out during pre-election conferences. Petitioner cites the
yet been complied with. It could also be discerned that An examination of respondent’s constitution reveals it cases of Toyota Motors and Progressive Development
the intention of the Labor Code and its Implementing sufficiently comprehensive in establishing the necessary Corporation-Pizza Hut v. Ledesma45 wherein the Court
Rules that only those labor organizations that have rules for its operation. Article IV establishes the ruled that the question of prohibited membership of both
acquired legal personality are capacitated to file petitions requisites for membership in the local/chapter. Articles V supervisory and rank-and-file employees in the same
for certification elections. Such is the general rule. and VI name the various officers and what their union must be inquired into anterior to the granting of an
respective functions are. The procedure for election of order allowing a certification election; and that a union
Yet there are peculiar circumstances in this case that these officers, including the necessary vote composed of both of these kinds of employees does not
allow the Court to rule that respondent acquired the requirements, is provided for in Article IX, while Article possess the requisite personality to file for recognition as
requisite legal personality at the same time it filed the XV delineates the procedure for the impeachment of a legitimate labor organization. It should be noted though
petition for certification election. In doing so, the Court these officers. that in the more recent case of Tagaytay Highlands
acknowledges that the strict letter of the procedural rule International Golf Club v. Tagaytay Highlands Employees
was not complied with. However, labor laws are Article VII establishes the standing committees of the Union,46 the Court, notwithstanding Toyota and
generally construed liberally in favor of labor, especially if local/chapter and how their members are appointed. Progressive, ruled that after a certificate of registration is
doing so affirms the constitutionally guaranteed right to Article VIII lays down the rules for meetings of the union, issued to a union, its legal personality cannot be subject
self-organization. including the notice and quorum requirements thereof. to collateral attack, but questioned only in an
Article X enumerates with particularity the rules for union independent petition for cancellation.47
True enough, there was no attempt made by the national dues, special assessments, fines, and other payments.
federation, or the local/chapter for that matter, to submit Article XII provides the general rule for quorum in There is no need to apply any of the above cases at
the enumerated documentary requirements to the meetings of the Board of Directors and of the members present because the question raised by petitioner on this
Regional Office or Bureau for the specific purpose of of the local/chapter, and cites the applicability of the point is already settled law, as a result of the denial of
creating the local/chapter. However, these same Robert’s Rules of Order43 in its meetings. And finally, the independent petition for cancellation filed by
documents were submitted by the local/chapter to the Article XVI governs and institutes the requisites for the petitioner against respondent on 20 August 1998. The
Regional Office as attachments to its petition for amendment of the constitution. ground relied upon therein was the alleged fraud,
certification election. Under Section 3, Rule VI of misrepresentation and false statement in describing itself
Department Order No. 9, it is the submission of these Indeed, it is difficult to see in this case what a set of as a union of rank and file employees when in fact, two
same documents to the Regional Office or Bureau that by-laws separate from the constitution for respondent of its officers, Emmanuel Rosell and Noel Bathan, were
operates to vest legal personality on the local/chapter. could provide that is not already provided for by the occupying supervisory positions.48 Said petition was
Constitution. These premises considered, there is clearly
denied by the Regional Director, this action was affirmed The grounds for cancellation of union registration are not
by the DOLE, the Court of Appeals, and the Supreme meant to be applied automatically, but indeed with
Court.49 The denial made by the Court of Appeals and utmost discretion. Where a remedy short of cancellation
the Supreme Court may have been based on procedural is available, that remedy should be preferred. In this
grounds,50 but the prior decisions of the Regional Director case, no party will be prejudiced if Bathan were to be
and the DOLE ruled squarely on the same issue now excluded from membership in the union. The vacancy he
raised by the petitioner. We quote from the Resolution of will thus create can then be easily filled up through the
the DOLE dated 29 December 1998: succession provision of appellee union’s constitution and
by-laws. What is important is that there is an
. . . . [The] substantive issue that is now before us is unmistakeable intent of the members of appellee union
whether or not the inclusion of the two alleged to exercise their right to organize. We cannot impose
supervisory employees in appellee union’s membership rigorous restraints on such right if we are to give
amounts to fraud, misrepresentation, or false statement meaning to the protection to labor and social justice
within the meaning of Article 239(a) and (c) of the Labor clauses of the Constitution.51
Code.
The above-cited pronouncement by Bureau of Labor
We rule in the negative. Relations Director Benedicto Ernesto R. Bitonio, Jr. in
BLR-A-C-41-11-11-98 was affirmed by the Court of
Under the law, a managerial employee is "one who is Appeals and the Supreme Court. Hence, its
vested with powers or prerogatives to lay down and pronouncement affirming, notwithstanding the questions
execute management policies and/or to hire, transfer, on the employment status of Rossell and Bathan, the
suspend, layoff, recall, discharge, assign or discipline legitimacy of the respondent, stands as a final ruling
employees." A supervisory employee is "one who, in the beyond the ambit of review, thus warranting the Court’s
interest of the employer, effectively recommends respect. There may be a difference between this case,
managerial actions if the exercise of such which involves a petition for certification election, and the
recommendatory authority is not merely routinary or other case, which concerns a petition for cancellation.
clerical in nature but requires the use of independent However, petitioner opposes the petition for certification
judgment.’" Finally, "all employees not falling within the election on the ground of the illegitimacy of respondent,
definition of managerial or supervisory employee are owing to the alleged supervisory nature of the duties of
considered rank-and-file employees". It is also Rossell and Bathan. That matter has already been
well-settled that the actual functions of an employee, not settled in the final disposition of the petition for
merely his job title, are determinative in classifying such cancellation, and thus cannot be unsettled by reason of
employee as managerial, supervisory or rank and file. this present petition.

In the case of Emmanuel Rossell, appellant’s evidence Effect of Respondent’s Manifestation

shows that he undertakes the filling out of evaluation
reports on the performance of mechanics, which in turn Of Subsequent Developments
are used as basis for reclassification. Given a ready and
standard form to accomplish, coupled with the nature of A final note. In its Memorandum, petitioner alleges that
the evaluation, it would appear that his functions are the bargaining unit that respondent sought to represent
more routinary than recommendatory and hardly leave is no longer the same because of the dynamic nature of
room for independent judgment. In the case of Noel petitioner’s business, a lot of changes having occurred in
Bathan, appellant’s evidence does not show his job title the work environment, and that four of respondent’s
although it shows that his recommendations on officers are no longer connected with petitioner.52
disciplinary actions appear to have carried some weight Assuming that these manifestations are true, they have
on higher management. On this limited point, he may no effect on the Court’s ruling that a certification election
qualify as a supervisory employee within the meaning of should be immediately conducted with respondent as
the law. This may, however, be outweighed by his other one of the available choices.
functions which are not specified in the evidence.
Petitioner’s bare manifestations adduce no reason why
Assuming that Bathan is a supervisory employee, this the certification election should not be conducted
does not prove the existence of fraud, false statement or forthwith. If there are matters that have arisen since the
misrepresentation. Because good faith is presumed in all filing of the petition that serve to delay or cancel the
representations, an essential element of fraud, false election, these can be threshed out during the
statement and misrepresentation in order for these to be pre-election conferences. Neither is the fact that some of
actionable is intent to mislead by the party making the respondent’s officers have since resigned from petitioner
representation. In this case, there is no proof to show of any moment. The local/chapter retains a separate
that Bathan, or appellee union for that matter, intended to legal personality from that of its officers or members that
mislead anyone. If this was appellee union’s intention, it remains viable notwithstanding any turnover in its
would have refrained from using a more precise officers or members.
description of the organization instead of declaring that
the organization is composed of ‘rank and file monthlies’. WHEREFORE, the Petition is DENIED. Costs against
Hence, the charge of fraud, false statement or petitioner.
misrepresentation cannot be sustained.
SO ORDERED.
Appellant’s reliance on the Toyota case must be
tempered by the peculiar circumstances of the case. Puno, (Chairman), Austria-Martinez, Callejo, Sr., and
Even assuming that Bathan, or Rossel for that matter, Chico-Nazario, JJ., concur.
are supervisory employees, the Toyota case cannot
certainly be given an interpretation that emasculates the
right to self-organization and the promotion of free trade
unionism. We take administrative notice of the realities in
union organizing, during which the organizers must take
their chances, oftentimes unaware of the fine distinctions
between managerial, supervisory and rank and file
employees.