G.R. No. 169717. March 16, 2011.: First Division

3/14/2021 SUPREME COURT REPORTS ANNOTATED VOLUME 645 3/14/2021 SUPREME COURT REPORTS ANNOTATED VOLUME 645
* FIRST DIVISION.
539
VOL. 645, MARCH 16, 2011 539
G.R. No. 169717. March 16, 2011.* Samahang Manggagawa sa Charter Chemical Solidarity of
Unions in the Philippines for Empowerment and Reforms (SMCC-
SAMAHANG MANGGAGAWA SA CHARTER CHEMICAL Super) vs. Charter Chemical and Coating Corporation
SOLIDARITY OF UNIONS IN THE PHILIPPINES FOR
EMPOWERMENT AND REFORMS (SMCC-SUPER), quently, it validly acquired the status of a legitimate labor
ZACARRIAS JERRY VICTORIO—Union President, organization upon submission of (1) its charter certificate, (2) the
petitioner, vs. CHARTER CHEMICAL AND COATING names of its officers, their addresses, and its principal office, and
CORPORATION, respondent. (3) its constitution and by-laws—the last two requirements
having been executed under oath by the proper union officials as
Labor Law; Labor Unions; A union’s charter certificate need borne out by the records.
not be executed under oath.—As readily seen, the Sama-samang
Pahayag ng Pagsapi at Authorization and Listahan ng mga Same; Same; The inclusion of the supervisory employees in a
Dumalo sa Pangkalahatang Pulong at mga Sumang-ayon at rank-and-file union does not divest it of its status as a legitimate
Nagratipika sa Saligang Batas are not among the documents that labor organization—the doctrine in Toyota Motor Philippines v.
need to be submitted to the Regional Office or Bureau of Labor Toyota Motor Philippines Corporation Labor Union, 268 SCRA
Relations in order to register a labor organization. As to the 573 (1997), no longer holds sway under the altered state of the law
charter certificate, the above-quoted rule indicates that it should and rules applicable.—Preliminarily, we note that petitioner
be executed under oath. Petitioner union concedes and the records union questions the factual findings of the Med-Arbiter, as upheld
confirm that its charter certificate was not executed under oath. by the appellate court, that 12 of its members, consisting of
However, in San Miguel Corporation (Mandaue Packaging batchman, mill operator and leadman, are supervisory employees.
Products Plants) v. Mandaue Packing Products Plants-San Miguel However, petitioner union failed to present any rebuttal evidence
Corporation Monthlies Rank-and-File Union-FFW (MPPP-SMPP- in the proceedings below after respondent company submitted in
SMAMRFU-FFW), 467 SCRA 107 (2005), which was decided evidence the job descriptions of the aforesaid employees. The job
under the auspices of D.O. No. 9, Series of 1997, we ruled—In San descriptions indicate that the aforesaid employees exercise
Miguel Foods-Cebu B-Meg Feed Plant v. Hon. Laguesma, 331 Phil. recommendatory managerial actions which are not merely
356 (1996), the Court ruled that it was not necessary for the routinary but require the use of independent judgment, hence,
charter certificate to be certified and attested by the local/chapter falling within the definition of supervisory employees under
officers. Id. While this ruling was based on the Article 212(m) of the Labor Code. For this reason, we are
interpretation of the previous Implementing Rules constrained to agree with the Med-Arbiter, as upheld by the
provisions which were supplanted by the 1997 appellate court, that petitioner union consisted of both rank-and-
amendments, we believe that the same doctrine obtains in file and supervisory employees. Nonetheless, the inclusion of the
this case. Considering that the charter certificate is prepared aforesaid supervisory employees in petitioner union does not
and issued by the national union and not the local/chapter, it divest it of its status as a legitimate labor organization. The
does not make sense to have the local/chapter’s officers appellate court’s reliance on Toyota is misplaced in view of this
x x x certify or attest to a document which they had no Court’s subsequent ruling in Republic v. Kawashima Textile Mfg.,
hand in the preparation of. (Emphasis supplied) In accordance Philippines, Inc, 559 SCRA 386 (2008), (hereinafter Kawashima).
with this ruling, petitioner union’s charter certificate need not be In Kawashima, we explained at length how and why the Toyota
executed under oath. Conse- doctrine no longer holds sway under the altered state of the law
and rules applicable to this case.
_______________
Same; Same; Certification Elections; A labor union’s
personality cannot be collaterally attacked in a certification
election proceedings.—Petitioner union correctly argues that its
www.central.com.ph/sfsreader/session/000001782f2193b1aef659f5003600fb002c009e/t/?o=False 1/21 www.central.com.ph/sfsreader/session/000001782f2193b1aef659f5003600fb002c009e/t/?o=False 2/21
legal personality cannot be collaterally attacked in the Hakim S. Abdulwahid.

certification election proceedings. As we explained in Kawashima:
541
Except when it is requested to bargain collectively, an employer is
a mere bystander to any petition
VOL. 645, MARCH 16, 2011 541
540
Samahang Manggagawa sa Charter Chemical Solidarity of
Unions in the Philippines for Empowerment and Reforms
540 SUPREME COURT REPORTS ANNOTATED (SMCC-Super) vs. Charter Chemical and Coating
Corporation
Super) vs. Charter Chemical and Coating Corporation January 13, 2000 Decision2 of the Department of Labor and
Employment (DOLE) in OS-A-6-53-99 (NCR-OD-M-9902-
019) and the September 16, 2005 Resolution3 denying
for certification election; such proceeding is non-adversarial and
petitioner union’s motion for reconsideration.
merely investigative, for the purpose thereof is to determine
Factual Antecedents
which organization will represent the employees in their collective
On February 19, 1999, Samahang Manggagawa sa
bargaining with the employer. The choice of their representative
Charter Chemical Solidarity of Unions in the Philippines
is the exclusive concern of the employees; the employer cannot
for Empowerment and Reforms (petitioner union) filed a
have any partisan interest therein; it cannot interfere with, much
petition for certification election among the regular rank-
less oppose, the process by filing a motion to dismiss or an appeal
and-file employees of Charter Chemical and Coating
from it; not even a mere allegation that some employees
Corporation (respondent company) with the Mediation
participating in a petition for certification election are actually
Arbitration Unit of the DOLE, National Capital Region.
managerial employees will lend an employer legal personality to
On April 14, 1999, respondent company filed an Answer
block the certification election. The employer’s only right in the
with Motion to Dismiss4 on the ground that petitioner
proceeding is to be notified or informed thereof.
union is not a legitimate labor organization because of (1)
failure to comply with the documentation requirements set
PETITION for review on certiorari of the decision and
by law, and (2) the inclusion of supervisory employees
resolution of the Court of Appeals.
within petitioner union.5
The facts are stated in the opinion of the Court.
Med-Arbiter’s Ruling
Josefina D. David for petitioner.
On April 30, 1999, Med-Arbiter Tomas F. Falconitin
King, Capuchino, Tan and Associates for respondent.
issued a Decision6 dismissing the petition for certification
DEL CASTILLO, J.: election. The Med-Arbiter ruled that petitioner union is not
The right to file a petition for certification election is a legitimate labor organization because the Charter
accorded to a labor organization provided that it complies Certificate, “Sama-samang Pahayag ng Pagsapi at
with the requirements of law for proper registration. The Authorization,” and “Listahan ng mga Dumalo sa
inclusion of supervisory employees in a labor organization Pangkalahatang Pulong at mga Sumang-ayon at
seeking to represent the bargaining unit of rank-and-file Nagratipika sa Saligang Batas” were not
employees does not divest it of its status as a legitimate
labor organization. We apply these principles to this case. _______________
This Petition for Review on Certiorari seeks to reverse
2 Id., at pp. 74-75.
and set aside the Court of Appeal’s March 15, 2005
3 Id., at p. 38.
Decision1 in CA-G.R. SP No. 58203, which annulled and set
aside the 4 Id., at pp. 214-223.
5 Id. at pp. 215-220.
6 Id., at pp. 40-50.
_______________
542
1 Rollo, pp. 29-36; penned by Associate Justice Estela M. Perlas-
Bernabe and concurred in by Associate Justices Elvi John S. Asuncion and
542 SUPREME COURT REPORTS ANNOTATED Samahang Manggagawa sa Charter Chemical Solidarity of
(SMCC-Super) vs. Charter Chemical and Coating
Corporation
Corporation
immediate implementation. Under Section 7, Rule XI of
executed under oath and certified by the union secretary D.O. No. 9, series of 1997, a motion for intervention
and attested to by the union president as required by involving a certification election in an unorganized
Section 235 of the Labor Code7in relation to Section 1, Rule establishment should be filed prior to the finality of the
VI of Department Order (D.O.) No. 9, series of 1997. The decision calling for a certification election. Considering that
union registration was, thus, fatally defective. petitioner union filed its petition only on February 14,
The Med-Arbiter further held that the list of 1999, the same was filed out of time.
membership of petitioner union consisted of 12 batchman, On motion for reconsideration, however, the DOLE
mill operator and leadman who performed supervisory reversed its earlier ruling. In its January 13, 2000
Decision, the DOLE found that a review of the records
functions. Under Article 245 of the Labor Code, said
supervisory employees are prohibited from joining indicates that no certification election was previously
petitioner union which seeks to represent the rank-and-file conducted in respondent company. On the contrary, the
employees of respondent company. prior certification election filed by Pinag-isang Lakas
Manggagawa sa Charter Chemical and Coating
As a result, not being a legitimate labor organization,
Corporation was, likewise, denied by the Med-Arbiter and,
petitioner union has no right to file a petition for
certification election for the purpose of collective on appeal, was dismissed by the DOLE for being filed out of
bargaining. time. Hence, there was no obstacle to the grant of
Department of Labor and Employment’s Ruling petitioner union’s petition for certification election, viz.:
On July 16, 1999, the DOLE initially issued a Decision8 “WHEREFORE, the motion for reconsideration is hereby
in favor of respondent company dismissing petitioner GRANTED and the decision of this Office dated 16 July 1999 is
union’s appeal on the ground that the latter’s petition for MODIFIED to allow the certification election among the regular
certification election was filed out of time. Although the rank-and-file employees of Charter Chemical and Coating
DOLE ruled, contrary to the findings of the Med-Arbiter, Corporation with the following choices:
that the charter certificate need not be verified and that 1. Samahang Manggagawa sa Charter Chemical-Solidarity of
there was no independent evidence presented to establish Unions in the Philippines for Empowerment and Reform (SMCC-
respondent company’s claim that some members of SUPER); and
petitioner union were holding supervisory positions, the 2. No Union.
DOLE sustained the dismissal of the petition for Let the records of this case be remanded to the Regional Office
certification after it took judicial notice that another union, of origin for the immediate conduct of a certification election,
i.e., Pinag-isang Lakas Manggagawa sa Charter Chemical subject to the usual pre-election conference.
and Coating Corporation, previously filed a petition for SO DECIDED.”9
certification election on January 16, 1998. The Decision
granting the said petition became final and executory on
_______________
September 16, 1998 and was remanded for
9 Id., at p. 75.
_______________
544
7 PRESIDENTIAL DECREE No. 442, as amended.
8 Rollo, pp. 52-54.
544 SUPREME COURT REPORTS ANNOTATED
543 Samahang Manggagawa sa Charter Chemical Solidarity of
VOL. 645, MARCH 16, 2011 543
(SMCC-Super) vs. Charter Chemical and Coating company[‘s] petition was already settled with finality and barred
Corporation from being re-litigated.
II
Court of Appeal’s Ruling Whether x x x the Honorable Court of Appeals committed grave
On March 15, 2005, the CA promulgated the assailed abuse of discretion tantamount to lack of jurisdiction in holding
Decision, viz.: that the alleged mixture of rank-and-file and supervisory
employee[s] of petitioner [union’s] membership is [a] ground for
“WHEREFORE, the petition is hereby GRANTED. The the cancellation of petitioner [union’s] legal personality and
assailed Decision and Resolution dated January 13, 2000 and dismissal of [the] petition for certification election.
February 17, 2000 are hereby [ANNULLED] and SET ASIDE. III
SO ORDERED.”10 Whether x x x the Honorable Court of Appeals committed grave
abuse of discretion tantamount to lack of jurisdiction in holding
In nullifying the decision of the DOLE, the appellate that the alleged failure to certify under oath the local charter
court gave credence to the findings of the Med-Arbiter that certificate issued by its mother federation and list of the union
petitioner union failed to comply with the documentation membership attending the organizational meeting [is a ground]
requirements under the Labor Code. It, likewise, upheld for the cancellation of petitioner [union’s] legal personality as a
the Med-Arbiter’s finding that petitioner union consisted of labor organization and for the dismissal of the petition for
both rank-and-file and supervisory employees. Moreover, certification election.12
the CA held that the issues as to the legitimacy of
petitioner union may be attacked collaterally in a petition Petitioner Union’s Arguments
for certification election and the infirmity in the Petitioner union claims that the litigation of the issue as
membership of petitioner union cannot be remedied to its legal personality to file the subject petition for
through the exclusion-inclusion proceedings in a pre- certification election is barred by the July 16, 1999
election conference pursuant to the ruling in Toyota Motor Decision of the DOLE. In this decision, the DOLE ruled
Philippines v. Toyota Motor Philippines Corporation Labor that petitioner union complied with all the documentation
Union.11 Thus, considering that petitioner union is not a requirements and that there was no independent evidence
legitimate labor organization, it has no legal right to file a presented to prove an illegal mixture of supervisory and
petition for certification election. rank-and-file employees in petitioner union. After the
promulgation of this Decision, respondent company did not
Issues move for reconsideration, thus, this issue must be deemed
settled.
I
Petitioner union further argues that the lack of
Whether x x x the Honorable Court of Appeals committed grave
verification of its charter certificate and the alleged illegal
abuse of discretion tantamount to lack of jurisdiction in granting
composition of its membership are not grounds for the
the respondent [company’s] petition for certiorari (CA G.R. No. SP
dismissal of a petition
No. 58203) in spite of the fact that the issues subject of the
respondent
_______________
_______________
12 Rollo, pp. 12-13.
10 Id., at p. 36.
546
11 335 Phil. 1045; 268 SCRA 573 (1997).
545
VOL. 645, MARCH 16, 2011 545 Unions in the Philippines for Empowerment and Reforms
Samahang Manggagawa sa Charter Chemical Solidarity of (SMCC-Super) vs. Charter Chemical and Coating
Unions in the Philippines for Empowerment and Reforms (SMCC- Corporation
Super) vs. Charter Chemical and Coating Corporation

for certification election under Section 11, Rule XI of D.O. the ruling in Toyota Motor Philippines vs. Toyota Motor
No. 9, series of 1997, as amended, nor are they grounds for Philippines Labor Union14 continues to be good case law.
the cancellation of a union’s registration under Section 3, Thus, the illegal composition of petitioner union nullifies
Rule VIII of said issuance. It contends that what is its legal personality to file the subject petition for
required to be certified under oath by the local union’s certification election and its legal personality may be
secretary or treasurer and attested to by the local union’s collaterally attacked in the proceedings for a petition for
president are limited to the union’s constitution and by- certification election as was done here.
laws, statement of the set of officers, and the books of
accounts. Our Ruling
Finally, the legal personality of petitioner union cannot
be collaterally attacked but may be questioned only in an The petition is meritorious.
independent petition for cancellation pursuant to Section 5, The issue as to the legal personality of
Rule V, Book IV of the Rules to Implement the Labor Code petitioner union is not barred by the July
16, 1999 Decision of the DOLE.
and the doctrine enunciated in Tagaytay Highlands
A review of the records indicates that the issue as to
International Golf Club Incoprorated v. Tagaytay
petitioner union’s legal personality has been timely and
Highlands Employees Union-PTGWO.13
consistently raised by respondent company before the Med-
Respondent Company’s Arguments
Respondent company asserts that it cannot be precluded Arbiter, DOLE, CA and now this Court. In its July 16, 1999
from challenging the July 16, 1999 Decision of the DOLE. Decision, the DOLE found that petitioner union complied
The said decision did not attain finality because the DOLE with the documentation requirements of the Labor Code
subsequently reversed its earlier ruling and, from this and that the evidence was insufficient to establish that
decision, respondent company timely filed its motion for there was an illegal mixture of supervisory and rank-and-
file employees in its membership. Nonetheless, the petition
reconsideration.
for certification election was dismissed on the ground that
On the issue of lack of verification of the charter
another union had previously filed a petition for
certificate, respondent company notes that Article 235 of
certification election seeking to represent the same
the Labor Code and Section 1, Rule VI of the Implementing
bargaining unit in respondent company. Upon motion for
Rules of Book V, as amended by D.O. No. 9, series of 1997,
expressly requires that the charter certificate be certified reconsideration by petitioner union on January 13, 2000,
under oath. the DOLE reversed its previous ruling. It upheld the right
It also contends that petitioner union is not a legitimate of petitioner union to file the subject petition for
labor organization because its composition is a mixture of certification election because its previous decision was
supervisory and rank-and-file employees in violation of
Article 245 of the Labor Code. Respondent company _______________
maintains that
14 Supra note 11.
_______________ 548
13 443 Phil. 841; 395 SCRA 699 (2003).

547
VOL. 645, MARCH 16, 2011 547 (SMCC-Super) vs. Charter Chemical and Coating
Corporation
(SMCC-Super) vs. Charter Chemical and Coating based on a mistaken appreciation of facts.15 From this
Corporation adverse decision, respondent company timely moved for
reconsideration by reiterating its previous arguments
before the Med-Arbiter that petitioner union has no legal

personality to file the subject petition for certification Article 235 of the Labor Code and its implementing rules.
election. It agreed with the Med-Arbiter that the Charter
The July 16, 1999 Decision of the DOLE, therefore, Certificate, Sama-samang Pahayag ng Pagsapi at
never attained finality because the parties timely moved Authorization, and Listahan ng mga Dumalo sa
for reconsideration. The issue then as to the legal Pangkalahatang Pulong at mga Sumang-ayon at
personality of petitioner union to file the certification Nagratipika sa Saligang Batas were not executed under
election was properly raised before the DOLE, the oath. Thus, petitioner union cannot be accorded the status
appellate court and now this Court. of a legitimate labor organization.
The charter certificate need not be certified We disagree.
under oath by the local union’s secretary or The then prevailing Section 1, Rule VI of the
treasurer and attested to by its president. Implementing Rules of Book V, as amended by D.O. No. 9,
Preliminarily, we must note that Congress enacted series of 1997, provides:
Republic Act (R.A.) No. 948116 which took effect on June
14, 2007.17 This law introduced substantial amendments to “Section 1. Chartering and creation of a local chapter—A
the Labor Code. However, since the operative facts in this duly registered federation or national union may directly create a
case occurred in 1999, we shall decide the issues under the local/chapter by submitting to the Regional Office or to the
pertinent legal provisions then in force (i.e., R.A. No. Bureau two (2) copies of the following:
6715,18 amending Book (a) A charter certificate issued by the federation or national
union indicating the creation or establishment of the
local/chapter;
_______________
(b) The names of the local/chapter’s officers, their addresses,
15 Upon reconsideration, the DOLE noted that the other union which and the principal office of the local/chapter; and
allegedly filed a prior petition for certification election was prevented from (c) The local/chapter’s constitution and by-laws provided that
doing so because its petition for certification election was filed out of time. where the local/chapter’s constitution and by-laws [are] the same
Thus, there was no obstacle to the conduct of a certification election in as
respondent company.
16 “An Act Strengthening the Workers’ Constitutional Right to Self- _______________
Organization, Amending for the Purpose Presidential Decree No. 442, as
gaining and Peaceful Concerted Activities, and Foster Industrial Peace and
Amended, Otherwise Known as the Labor Code of the Philippines.”
Harmony.” Effective March 21, 1989.
17 Republic v. Kawashima Textile Mfg., Philippines, Inc., G.R. No.
160352, July 23, 2008, 559 SCRA 386, 396. 19 Approved on May 24, 1989.
18 “An Act to Extend Protection to Labor, Strengthen the 20 Effective: June 21, 1997.
Constitutional Rights of Workers to Self-Organization, Collective Bar- 21 Supra note 17 at pp. 396-397.
549 550
VOL. 645, MARCH 16, 2011 549 550 SUPREME COURT REPORTS ANNOTATED
Samahang Manggagawa sa Charter Chemical Solidarity of Samahang Manggagawa sa Charter Chemical Solidarity of
Corporation
[those] of the federation or national union, this fact shall be
indicated accordingly.
19
V of the Labor Code, and the rules and regulations All the foregoing supporting requirements shall be certified
implementing R.A. No. 6715, as amended by D.O. No. 9,20 under oath by the Secretary or the Treasurer of the local/chapter
series of 1997) pursuant to our ruling in Republic v. and attested to by its President.”
Kawashima Textile Mfg., Philippines, Inc.21
In the main, the CA ruled that petitioner union failed to As readily seen, the Sama-samang Pahayag ng Pagsapi
comply with the requisite documents for registration under at Authorization and Listahan ng mga Dumalo sa
Pangkalahatang Pulong at mga Sumang-ayon at The mixture of rank-and-file and super-

Nagratipika sa Saligang Batas are not among the visory employees in petitioner union
documents that need to be submitted to the Regional Office does not nullify its legal personality as a
or Bureau of Labor Relations in order to register a labor legitimate labor organization.
organization. As to the charter certificate, the above-quoted The CA found that petitioner union has for its
rule indicates that it should be executed under oath. membership both rank-and-file and supervisory employees.
Petitioner union concedes and the records confirm that its However, petitioner union sought to represent the
charter certificate was not executed under oath. However, bargaining unit consisting of rank-and-file employees.
in San Miguel Corporation (Mandaue Packaging Products Under Article 24527 of the Labor Code, supervisory
Plants) v. Mandaue Packing Products Plants-San Miguel employees are not eligible for membership in a labor
Corporation Monthlies Rank-and-File Union-FFW (MPPP- organization of rank-and-file employees. Thus, the
SMPP-SMAMRFU-FFW),22 which was decided under the appellate court ruled that petitioner union cannot be
auspices of D.O. No. 9, Series of 1997, we ruled— considered a legitimate labor organization pursuant to
Toyota Motor Philippines v. Toyota Motor Philippines
“In San Miguel Foods-Cebu B-Meg Feed Plant v. Hon. Lagues- Corporation Labor Union28 (hereinafter Toyota).
ma, 331 Phil. 356 (1996), the Court ruled that it was not
necessary for the charter certificate to be certified and attested
_______________
by the local/chapter officers. Id. While this ruling was based
on the interpretation of the previous Implementing Rules 24 DOLE records, p. 51.
provisions which were supplanted by the 1997 25 Id., at pp. 43-44.
amendments, we believe that the same doctrine obtains in 26 Id., at pp. 25-40.
this case. Considering that the charter certificate is prepared 27 Article 245. Ineligibility of Managerial Employees to Join Any
and issued by the national union and not the local/chapter, it Labor Organization; Right of Supervisory Employees.—x x x Supervisory
does not make sense to have the local/chapter’s officers
employees shall not be eligible for membership in the collective bargaining
x x x certify or attest to a document which they had no
unit of the rank-and-file employees but may join, assist or form separate
hand in the preparation of.”23 (Emphasis supplied)
collective bargaining units and/or legitimate labor organizations of their
own. x x x
_______________ 28 Supra note 11.
22 504 Phil. 376; 467 SCRA 107 (2005). 552

23 Id., at p. 400; p. 128.
551 552 SUPREME COURT REPORTS ANNOTATED

VOL. 645, MARCH 16, 2011 551 Unions in the Philippines for Empowerment and Reforms
Samahang Manggagawa sa Charter Chemical Solidarity of Corporation
Corporation Preliminarily, we note that petitioner union questions
the factual findings of the Med-Arbiter, as upheld by the
appellate court, that 12 of its members, consisting of
In accordance with this ruling, petitioner union’s charter
batchman, mill operator and leadman, are supervisory
certificate need not be executed under oath. Consequently,
employees. However, petitioner union failed to present any
it validly acquired the status of a legitimate labor
rebuttal evidence in the proceedings below after respondent
organization upon submission of (1) its charter certificate,24
company submitted in evidence the job descriptions29 of the
(2) the names of its officers, their addresses, and its
aforesaid employees. The job descriptions indicate that the
principal office,25 and (3) its constitution and by-laws26—
aforesaid employees exercise recommendatory managerial
the last two requirements having been executed under oath
actions which are not merely routinary but require the use
by the proper union officials as borne out by the records.
of independent judgment, hence, falling within the
30
definition of supervisory employees under Article 212(m) It was the Rules and Regulations Implementing R.A. No. 6715
of the Labor Code. For this reason, we are constrained to (1989 Amended Omnibus Rules) which supplied the deficiency by
agree with the Med-Arbiter, as upheld by the appellate introducing the following amendment to Rule II (Registration of
court, that petitioner union consisted of both rank-and-file Unions):
and supervisory employees. “Sec. 1. Who may join unions.—x x x Supervisory
Nonetheless, the inclusion of the aforesaid supervisory employees and security guards shall not be eligible
employees in petitioner union does not divest it of its status for membership in a labor organization of the rank-
as a legitimate labor organization. The appellate court’s and-file employees but may join, assist or form
reliance on Toyota is misplaced in view of this Court’s separate labor organizations of their own; Provided,
subsequent that those supervisory employees who are included in an
existing rank-and-file bargaining unit, upon the effectivity
_______________ of Republic Act No. 6715, shall remain in that unit x x x.
(Emphasis supplied)
29 Respondent company claimed that the batchman, mill operator and and Rule V (Representation Cases and Internal-Union Conflicts)
leadman perform, among others, the following functions: of the Omnibus Rules, viz.:
Prepares, coordinates and supervises work schedules and activities of “Sec. 1. Where to file.—A petition for certification
subordinates or helpers in their respective area of responsibility. election may be filed with the Regional Office which has
1. Recommends the reduction, increase, transfer and number of jurisdiction over the principal office of the employer. The
employees assigned to them. petition shall be in writing and under oath.
2. Sees to it that daily production schedules and outputs are Sec. 2. Who may file.—Any legitimate labor
carried on time. organization or the employer, when requested to bargain
3. Coordinates with their respective managers the needed raw collectively, may file the petition.
materials and the quality of finished products. (Rollo, p. 220) The petition, when filed by a legitimate labor
30 Article 212(m) of the Labor Code, states in part: “Supervisory organization, shall contain, among others:
employees are those who, in the interest of the employer, effectively x x x x
recommend such managerial actions if the exercise of such authority is
not merely routinary or clerical in nature but requires the use of _______________
independent judgment. x x x”
31 Supra note 17.
553
554
VOL. 645, MARCH 16, 2011 553

Samahang Manggagawa sa Charter Chemical Solidarity of Samahang Manggagawa sa Charter Chemical Solidarity of
Unions in the Philippines for Empowerment and Reforms Unions in the Philippines for Empowerment and Reforms (SMCC-
(SMCC-Super) vs. Charter Chemical and Coating Super) vs. Charter Chemical and Coating Corporation
Corporation
(c) description of the bargaining unit which shall
ruling in Republic v. Kawashima Textile Mfg., Philippines, be the employer unit unless circumstances otherwise
Inc.31 (hereinafter Kawashima). In Kawashima, we require; and provided further, that the appropriate
explained at length how and why the Toyota doctrine no bargaining unit of the rank-and-file employees shall
longer holds sway under the altered state of the law and not include supervisory employees and/or security
rules applicable to this case, viz.: guards.” (Emphasis supplied)
By that provision, any questioned mingling will prevent an
R.A. No. 6715 omitted specifying the exact effect any otherwise legitimate and duly registered labor organization from
violation of the prohibition [on the co-mingling of exercising its right to file a petition for certification election.
supervisory and rank-and-file employees] would bring Thus, when the issue of the effect of mingling was brought to
about on the legitimacy of a labor organization. the fore in Toyota, the Court, citing Article 245 of the Labor Code,
as amended by R.A. No. 6715, held:
“Clearly, based on this provision, a labor organization of rank-and-file employees has not been mingled with supervisory
composed of both rank-and-file and supervisory employees employees—was removed. Instead, what the 1997 Amended
is no labor organization at all. It cannot, for any guise or Omnibus Rules requires is a plain description of the bargaining
purpose, be a legitimate labor organization. Not being one, unit, thus:
an organization which carries a mixture of rank-and- Rule XI
file and supervisory employees cannot possess any of Certification Elections
the rights of a legitimate labor organization, x x x x
including the right to file a petition for certification Sec. 4. Forms and contents of petition.—The petition shall be
election for the purpose of collective bargaining. It in writing and under oath and shall contain, among others, the
becomes necessary, therefore, anterior to the granting of following: x x x (c) The description of the bargaining unit.
an order allowing a certification election, to inquire In Pagpalain Haulers, Inc. v. Trajano, the Court had occasion
into the composition of any labor organization to uphold the validity of the 1997 Amended Omnibus Rules,
whenever the status of the labor organization is although the specific provision involved therein was only Sec. 1,
challenged on the basis of Article 245 of the Labor Rule VI, to wit:
Code. “Section 1. Chartering and creation of a local/chapter.
x x x x —A duly registered federation or national union may
In the case at bar, as respondent union’s membership list directly create a local/chapter by submitting to the Regional
contains the names of at least twenty-seven (27) Office or to the Bureau two (2) copies of the following: a) a
supervisory employees in Level Five positions, the union charter certificate issued by the federation or national
could not, prior to purging itself of its supervisory employee union indicating the creation or establishment of the
members, attain the status of a legitimate labor local/chapter; (b) the names of the local/chapter’s officers,
organization. Not being one, it cannot possess the requisite their addresses, and the principal office of the local/chapter;
personality to file a petition for certification election.” and (c) the local/ chapter’s constitution and by-laws;
(Emphasis supplied) provided that where the local/chapter’s constitution and by-
In Dunlop, in which the labor organization that filed a petition laws is the same as that of the federation or national union,
for certification election was one for supervisory employees, but in this fact shall be indicated accordingly.
which the membership included rank-and-file employees, the
556
Court
555 556 SUPREME COURT REPORTS ANNOTATED

VOL. 645, MARCH 16, 2011 555 Unions in the Philippines for Empowerment and Reforms (SMCC-
Samahang Manggagawa sa Charter Chemical Solidarity of Super) vs. Charter Chemical and Coating Corporation
Super) vs. Charter Chemical and Coating Corporation All the foregoing supporting requirements shall be
certified under oath by the Secretary or the Treasurer of the
reiterated that such labor organization had no legal right to file a local/chapter and attested to by its President.”
certification election to represent a bargaining unit composed of which does not require that, for its creation and registration, a
supervisors for as long as it counted rank-and-file employees local or chapter submit a list of its members.
among its members. Then came Tagaytay Highlands Int’l. Golf Club, Inc. v.
It should be emphasized that the petitions for certification Tagaytay Highlands Employees Union-PGTWO in which the core
election involved in Toyota and Dunlop were filed on November issue was whether mingling affects the legitimacy of a labor
26, 1992 and September 15, 1995, respectively; hence, the 1989 organization and its right to file a petition for certification
Rules was applied in both cases. election. This time, given the altered legal milieu, the Court
But then, on June 21, 1997, the 1989 Amended Omnibus Rules abandoned the view in Toyota and Dunlop and reverted to its
was further amended by Department Order No. 9, series of 1997 pronouncement in Lopez that while there is a prohibition against
(1997 Amended Omnibus Rules). Specifically, the requirement the mingling of supervisory and rank-and-file employees in one
under Sec. 2(c) of the 1989 Amended Omnibus Rules—that the labor organization, the Labor Code does not provide for the effects
petition for certification election indicate that the bargaining unit thereof. Thus, the Court held that after a labor organization has
been registered, it may exercise all the rights and privileges of a The legal personality of petitioner union
legitimate labor organization. Any mingling between supervisory cannot be collaterally attacked by respon-
and rank-and-file employees in its membership cannot affect its dent company in the certification election
legitimacy for that is not among the grounds for cancellation of its proceedings.
registration, unless such mingling was brought about by Petitioner union correctly argues that its legal
misrepresentation, false statement or fraud under Article 239 of personality cannot be collaterally attacked in the
the Labor Code. certification election proceedings. As we explained in
In San Miguel Corp. (Mandaue Packaging Products Plants) v. Kawashima:
Mandaue Packing Products Plants-San Miguel Packaging
Products-San Miguel Corp. Monthlies Rank-and-File Union-FFW, “Except when it is requested to bargain collectively, an
the Court explained that since the 1997 Amended Omnibus Rules employer is a mere bystander to any petition for certification
does not require a local or chapter to provide a list of its members, election; such proceeding is non-adversarial and merely
it would be improper for the DOLE to deny recognition to said investigative, for the purpose thereof is to determine which
local or chapter on account of any question pertaining to its organization will represent the employees in their collective
individual members. bargaining with the employer. The choice of their representative
More to the point is Air Philippines Corporation v. Bureau of is the exclusive concern of the employees; the employer cannot
Labor Relations, which involved a petition for cancellation of have any partisan interest therein; it cannot interfere with, much
union registration filed by the employer in 1999 against a rank- less oppose, the process by filing a motion to dismiss or an appeal
and-file labor organization on the ground of mixed membership: from it; not even a mere allegation that some employees
the Court therein reiterated its ruling in Tagaytay Highlands participating in a petition for certification election are actually
that the inclusion in a union of disqualified employees is not managerial employees will lend an employer legal personal-
among the grounds for cancellation, unless such inclusion is due
to misrepresentation, false statement or fraud under the _______________
circumstances enumerated in Sections (a) and (c) of Article 239 of

32 Id., at pp. 402-407.
the Labor Code.
558
557

VOL. 645, MARCH 16, 2011 557
Samahang Manggagawa sa Charter Chemical Solidarity of Unions in the Philippines for Empowerment and Reforms (SMCC-
Unions in the Philippines for Empowerment and Reforms (SMCC- Super) vs. Charter Chemical and Coating Corporation
ity to block the certification election. The employer’s only right in

All said, while the latest issuance is R.A. No. 9481, the 1997
the proceeding is to be notified or informed thereof.
Amended Omnibus Rules, as interpreted by the Court in
Tagaytay Highlands, San Miguel and Air Philippines, had The amendments to the Labor Code and its
already set the tone for it. Toyota and Dunlop no longer hold sway implementing rules have buttressed that policy even
in the present altered state of the law and the rules.”32 [Underline more.”33
supplied] WHEREFORE, the petition is GRANTED. The March
15, 2005 Decision and September 16, 2005 Resolution of
The applicable law and rules in the instant case are the
the Court of Appeals in CA-G.R. SP No. 58203 are
same as those in Kawashima because the present petition
REVERSED and SET ASIDE. The January 13, 2000
for certification election was filed in 1999 when D.O. No. 9,
Decision of the Department of Labor and Employment in
series of 1997, was still in effect. Hence, Kawashima
OS-A-6-53-99 (NCR-OD-M-9902-019) is REINSTATED.
applies with equal force here. As a result, petitioner union
No pronouncement as to costs.
was not divested of its status as a legitimate labor
SO ORDERED.
organization even if some of its members were supervisory
employees; it had the right to file the subject petition for Corona (C.J., Chairperson), Velasco, Jr., Leonardo-De
certification election. Castro and Perez, JJ., concur.
3/14/2021 SUPREME COURT REPORTS ANNOTATED VOLUME 645
Petition granted, judgment and resolution reversed and

set aside.
Note.—After a certificate of registration is issued to a

union, its legal personality cannot be subject to collateral
attack. (Tagaytay Highlands International Golf Club
Incorporated vs. Tagaytay Highlands Employees Union-
PGTWO, 395 SCRA 699 [2003])
For the purpose of de-certifying a union, it is not enough
to establish that the rank-and-file union includes ineligible
employees in its membership—it must be shown that there
was misrepresentation, false statement or fraud in
connection with the adoption or ratification of the
constitution and by-laws or amendments thereto, the
minutes of ratification, or in connection with the election of
officers, minutes of the election of officers, the list of voters,
or failure to submit these docu-
_______________
33 Id., at p. 408.
559
VOL. 645, MARCH 16, 2011 559

Corporation
ments together with the list of newly elected-appointed

officers and their postal addresses to the Bureau of Labor
Relations. (Air Philippines Corporation vs. Bureau of Labor
Relations, 492 SCRA 243 [2006])
——o0o——
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3/14/2021 SUPREME COURT REPORTS ANNOTATED VOLUME 645 3/14/2021 SUPREME COURT REPORTS ANNOTATED VOLUME 645

VOL. 645, MARCH 16, 2011 539

legal personality cannot be collaterally attacked in the Hakim S. Abdulwahid.

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13 443 Phil. 841; 395 SCRA 699 (2003).

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Pangkalahatang Pulong at mga Sumang-ayon at The mixture of rank-and-file and super-

22 504 Phil. 376; 467 SCRA 107 (2005). 552

551 552 SUPREME COURT REPORTS ANNOTATED

VOL. 645, MARCH 16, 2011 553

555 556 SUPREME COURT REPORTS ANNOTATED

circumstances enumerated in Sections (a) and (c) of Article 239 of

558 SUPREME COURT REPORTS ANNOTATED

ity to block the certification election. The employer’s only right in

Petition granted, judgment and resolution reversed and

Note.—After a certificate of registration is issued to a

VOL. 645, MARCH 16, 2011 559

ments together with the list of newly elected-appointed

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