Wednesday, August 28, 2013

Samahang Manggagawa sa Permex (SMP) vs. Secretary of Labor

Samahang Manggagawa sa Permex (SMP) vs. Secretary of Labor
GR No. 107792, March 2, 1998

Facts:
The employees of Permex Producer and Exporter Corporation voted "No Union" during the January 15, 1991 certification election (CE).
On March 11, 1991, the SMP, which is composed of some employees of Permex Producer, was registered with the Department of Labor and Employment (DOLE).
On August 16, 1991, SMP requested Permex Producer to recognize SMP as the sole and exclusive bargaining representative of the employees of Permex Producer.
On October 19, 1991, Permex Producer recognized SMP, and because of such recognition, Permex entered into a collective bargaining agreement (CBA) with SMP on December 1, 1991. The CBA was ratified on December 9 & 10, 1991 by the majority of the rank and file employees of Permex. On December 13, 1991, such CBA was certified by the DOLE.
On February 25, 1992, the National Labor Federation (NFL) filed a petition for CE, but was dismissed. NFL's appeal led to its inclusion in the options for CE. SMP moved for reconsideration.

Issue:
Whether support by the majority of the employees makes a CBA entered by a union valid and binding

Held: No, it does not.
It is not enough that a union has the support of the majority of the employees. It is equally important that everyone in the bargaining unit be given the opportunity to express himself.

This is especially so because, in this case, the recognition given to the union came barely ten (10) months after the employees had voted "no union" in the certification election conducted in the company. As pointed out by respondent Secretary of Labor in his decision, there can be no determination of a bargaining representative within a year of the proclamation of the results of the certification election. Here the results, which showed that 61% of the employees voted for "no union," were certified only on February 25, 1991 but on December 1, 1991 Permex Producer already recognized the union and entered into a CBA with it.

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