MERALCO v. Sec. of Labor

Facts:

The Staff and Technical Employees Association of MERALCO (STEAM-PCWF) is the labor organization of staff and technical employees of MERALCO.

STEAM-PCWF filed a petition for certification election, seeking to represent regular employees of MERALCO who are: (a) non-managerial employees with Pay Grades VII and above; (b) non-managerial employees in the Patrol Division, Treasury Security Services Section, Secretaries who are automatically removed from the bargaining unit; and (c) employees within the rank and file unit who are automatically disqualified from becoming union members of any organization within the same bargaining unit. According to them, "while there exists a duly-organized union for rank and file employees in Pay Grade I-VI, which is the MERALCO Employees and Worker's Association (MEWA) which holds a valid CBA for the rank and file employees,1 there is no other labor organization except STEAM-PCWF claiming to represent the MERALCO employees.

MERALCO moved to dismiss the petition filed by STEAM-PCWF. Med-Arbiter ruled that having been excluded from the existing Collective Bargaining Agreement for rank and file employees, these employees have the right to form a union of their own, except those employees performing managerial functions. MERALCO appealed, MEWA filed an appeal-in-intervention, and STEAM-PCWF opposed such appeal. The Secretary of Labor affirmed the decision of the Med-Arbiter. MERALCO’s motion for reconsideration was denied, thus this petition.

Issues:

Respondent secretary acted with grave abuse of discretion and/or in excess of jurisdiction amounting to lack of jurisdiction in ruling that:

I. Another rank-and-file bargaining unit can be established independent, distinct and separate from the existing rank-and-file bargaining unit.

II. The employees from pay grades vii and above are rank-and-file employees.

III. The security guards or personnel may be lumped together with the rank-and-file union and/or the supervisory union.

Held:

Employees from Pay Grades VII and up have been recognized and accepted as supervisory. On the other hand, those employees who have been automatically disqualified have been directed by the Secretary of Labor to remain in the existing labor organization for the rank and file. STEAM-PCWF, and FLAMES would therefore represent supervisory employees only. In this regard, the authority given by the Secretary of Labor for the establishment of two labor organizations for the rank and file will have to be disregarded.

While therefore under the old rules, security guards were barred from joining a labor organization of the rank and file, under RA 6715, they may now freely join a labor organization of the rank and file or that of the supervisory union, depending on their rank. By accommodating supervisory employees, the Secretary of Labor must likewise apply the provisions of RA 6715 to security guards by favorably allowing them free access to a labor organization, whether rank and file or supervisory, in recognition of their constitutional right to self-organization. Economic reasons would present the employees concerned with the temptation to subordinate their duties to the allegiance they owe the union of which they are members, aware as they are that it is usually union action that obtains for them increased pecuniary benefits. Thus, in the event of a strike declared by their union, security personnel may neglect or outrightly abandon their duties, such as protection of property of their employer and the persons of its officials and employees, the control of access to the employer's premises, and the maintenance of order in the event of emergencies and untoward incidents.

Employees of the Patrol Division, Treasury Security Services Section and Secretaries may freely join either the labor organization of the rank and file or that of the supervisory union depending on their employee rank. Disqualified employees covered by Sec. 3, Art. I of the MEWA-CBA, shall remain with the existing labor organization of the rank and file.