1.d benguet electric coop. v. ferrer-calleja

7/21/2019 1.d Benguet Electric Coop. v. Ferrer-Calleja

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G.R. No. 79025. December 29, 1989.

BENGUET ELECTRIC COOPERATIVE, INC., petitioner,

vs.

ON. PURA !ERRER"CALLE#A, D$rec%or o& %'e B(re)( o& L)bor Re*)%$o+, )+- BENECO EPLO/EE

LABOR UNION, respondents.

E.L. Gayo & Associates for petitioner.

CORTE, J.:

On June 21, 1985 Beneco Worker's Labor Union-ssociation o! "e#ocratic Labor Or$ani%ations &ereina!ter

re!erred to as BWLU- "LO( )*ed a petition !or direct certi)cation as te so*e and e+c*usive bar$ainin$

representative o! a** te rank and )*e e#p*oees o! Ben$uet *ectric ooperative, /nc. &ereina!ter re!erred to as

B0O( at *apan$, La rinidad, Ben$uet a**e$in$, inter a*ia, tat B0O as in its e#p*o to undred and

!ourteen &213( rank and )*e e#p*oees4 tat one undred and ninet-ei$t &198( or 92.5 o! tese e#p*oees

ave supported te )*in$ o! te petition4 tat no certi)cation e*ection as been conducted !or te *ast 12 #onts4

tat tere is no e+istin$ co**ective bar$ainin$ representative o! te rank and )*e e#p*oees sou$t to represented

b BWLU- "LO4 and, tat tere is no co**ective bar$ainin$ a$ree#ent in te cooperative.

n opposition to te petition as )*ed b te Beneco #p*oees Labor Union &ereina!ter re!erred to as BLU(

contendin$ tat it as certi)ed as te so*e and e+c*usive bar$ainin$ representative o! te sub6ect orkers

pursuant to an order issued b te #ed-arbiter on October 27,19874 tat pendin$ reso*ution b te 0ationa*

Labor e*ations o##ission are to cases it )*ed a$ainst B0O invo*vin$ bar$ainin$ dead*ock and un!air

*abor practice4 and, tat te pendenc o! tese cases bars an representation uestion.

B0O, on te oter and, )*ed a #otion to dis#iss te petition c*ai#in$ tat it is a non-pro)t e*ectric

cooperative en$a$ed in providin$ e*ectric services to its #e#bers and patron-consu#ers in te it o! Ba$uio

and Ben$uet :rovince4 and, tat te e#p*oees sou$t to be represented b BWLU-"LO are not e*i$ib*e to !or#,

6oin or assist *abor or$ani%ations o! teir on coosin$ because te are #e#bers and 6oint oners o! te

cooperative.

On ;epte#ber 2, 1985 te #ed-arbiter issued an order $ivin$ due course to te petition !or certi)cation e*ection.

( e#p*oees o are not #e#bers and

itout an invo*ve#ent in te actua* onersip o! te cooperative. e dispositive portion o! te #ed-arbiter's

order is as !o**os?

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restrainin$ order, docketed as H.. 0o. >3279, ic te ;upre#e ourt dis#issed !or *ack o! #erit in a #inute

reso*ution dated pri* 28, 198G.

e ordered certi)cation e*ection as e*d on October 1, 198G. :rior to te conduct tereo! B0O's counse*

verba** #ani!ested tat Ite cooperative is protestin$ tat e#p*oees o are #e#bers-consu#ers are bein$

a**oed to vote en . . . te are not e*i$ib*e to be #e#bers o! an *abor union !or purposes o! co**ective

bar$ainin$4 #uc *ess, to vote in tis certi)cation e*ection.I Eo**o, p. 28F. :etitioner sub#itted a certi)cation

soin$ tat on* !our &3( e#p*oees are not #e#bers o! B0O and insisted tat on* tese e#p*oees are

e*i$ib*e to vote in te certi)cation e*ection. anvass o! te votes soed tat BLU $arnered !ort-nine &39( o!

te ei$t-tree &8=( Iva*idI votes cast.

erea!ter B0O !or#a*i%ed its verba* #ani!estation b )*in$ a :rotest. @indin$, a#on$ oters, tat te issue

as to eter or not #e#ber-consu#ers o are e#p*oees o! B0O cou*d !or#, assist or 6oin a *abor union

as been ansered in te air#ative b te ;upre#e ourt in H.. 0o. >3279, te #ed-arbiter dis#issed te

protest on @ebruar 1>, 198>. On June 2=, 198>, Bureau o! Labor e*ations &BL( director :ura @errer-a**e6a

air#ed te #ed-arbiter's order and certi)ed BLU as te so*e and e+c*usive bar$ainin$ a$ent o! a** te rank and

)*e e#p*oees o! B0O.

**e$in$ tat te BL director co##itted $rave abuse o! discretion a#ountin$ to *ack or e+cess o! 6urisdiction

B0O )*ed te instant petition !or certiorari. /n is o##ent te ;o*icitor Henera* a$reed it B0O's

stance and praed tat te petition be $iven due course. /n vie o! tis respondent director erse*! as reuired

b te ourt to )*e a o##ent. On pri* 19, 1989 te ourt $ave due course to te petition and reuired te

parties to sub#it teir respective #e#oranda.

e #ain issue in tis case is eter or not respondent director co##itted $rave abuse o! discretion in

certi!in$ respondent BLU as te so*e and e+c*usive bar$ainin$ representtative o! te rank and )*e e#p*oees o!

B0O.

Under rtic*e 25G o! te Labor ode E:res. "ecree 332F to ave a va*id certi)cation e*ection, Iat *east a #a6orit

o! a** e*i$ib*e voters in te unit #ust ave cast teir votes. e *abor union receivin$ te #a6orit o! te va*id

votes cast sa** be certi)ed as te e+c*usive bar$ainin$ a$ent o! a** orkers in te unit.I :etitioner B0O

asserts tat te certi)cation e*ection e*d on October 1, 198G as nu** and void since #e#bers-e#p*oees o!

petitioner cooperative o are not e*i$ib*e to !or# and 6oin a *abor union !or purposes o! co**ective bar$ainin$

ere a**oed to vote terein.

espondent director and private respondent BLU on te oter and sub#it tat #e#bers o! a cooperative o

are a*so rank and )*e e#p*oees are e*i$ib*e to !or#, assist or 6oin a *abor union Eo##ent o! espondent

"irector, p. 34 o**o, p. 1254 o##ent o! BLU, pp. 9-174 o**o pp. 99-177F.

e ourt )nds te present petition #eritorious.

e issue o! eter or not e#p*oees o! a cooperative are ua*i)ed to !or# or 6oin a *abor or$ani%ation !or

purposes o! co**ective bar$ainin$ as a*read been reso*ved and c*ari)ed in te case o! Cooperative Rural Bank of

Davao City, Inc. vs. Ferrer Calleja, et al.EH.. 0o. >>95, ;epte#ber 2G,1988F and reiterated in te cases

o!Batanas!Electric Cooperative La"or #nion v. $oun, et al.EH.. 0os. G2=8G, >7887 and >35G7 0ove#ber 9,

1988F and %an ose City Electric %ervice Cooperative, Inc. v. 'inistry of La"or an( E)ploy)ent, et al. EH.. 0o.

>>2=1, Ca =1, 1989F erein te ourt ad stated tat te ri$t to co**ective bar$ainin$ is not avai*ab*e to an

e#p*oee o! a cooperative o at te sa#e ti#e is a #e#ber and co-oner tereo!. Wit respect, oever, to

e#p*oees o are neiter #e#bers nor co-oners o! te cooperative te are entit*ed to e+ercise te ri$ts to

se*!-or$ani%ation, co**ective bar$ainin$ and ne$otiation as #andated b te 198> onstitution and app*icab*e

statutes.

espondent director ar$ues tat to den te #e#bers o! petitioner cooperative te ri$t to !or#, assist or 6oin a

*abor union o! teir on coice !or purposes o! co**ective bar$ainin$ ou*d a#ount to a patent vio*ation o! teir

ri$t to se*!-or$ani%ation. ;e points out tat?

*beit a person assu#es a dua* capacit as rank and )*e e#p*oee and as #e#ber o! a certain

cooperative does not #i*itate, as in te instant case, a$ainst isAer e+ercise o! te ri$t to se*!-

or$ani%ation and to co**ective bar$ainin$ $uaranteed b te onstitution and Labor ode

because, i*e so doin$, eAse is actin$ in isAer capacit as rank and )*e e#p*oee tereo!. /t

#a be added tat i*e te e#p*oees concerned beca#e #e#bers o! petitioner cooperative,

teir status e#p*o#ent as rank and )*ers o are ired !or )+ed co#pensation ad not can$ed.


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e sti** do not actua** participate in te #ana$e#ent o! te cooperative as said !unction is

entrusted to te Board o! "irectors and to te e*ected or appointed oicers tereo!. e are not

vested it te poers and prero$atives to *a don and e+ecute #ana$eria* po*icies4 to ire,

trans!er, suspend, *a-o, reca**, discar$e, assi$n or discip*ine e#p*oees4 andAor to eective*

reco##end suc #ana$eria* !unctions Eo##ent o! espondent "irector, p. 34 o**o, p. 125.F

:rivate respondent BLU concurs it te above contention o! respondent director and, additiona**, c*ai#s tat

since #e#bersip in petitioner cooperative is on* no#ina*, te rank and )*e e#p*oees o are #e#bers

tereo! sou*d not be deprived o! teir ri$t to se*!-or$ani%ation.

e above contentions are untenab*e. ontrar to respondents' c*ai#, te !act tat te #e#bers-e#p*oees o!

petitioner do not participate in te actua* #ana$e#ent o! te cooperative does not #ake te# e*i$ib*e to !or#,

assist or 6oin a *abor or$ani%ation !or te purpose o! co**ective bar$ainin$ it petitioner. e ourt's ru*in$ in

te "avao it case tat #e#bers o! cooperative cannot 6oin a *abor union !or purposes o! co**ective bar$ainin$

as based on te !act tat as #e#bers o! te cooperative te are co-oners tereo!. s suc, te cannot invoke

te ri$t to co**ective bar$ainin$ !or Icertain* an oner cannot bar$ain it i#se*! or is co-oners.I

Eooperative ura* Bank o! "avao it, /nc. v. @errer-a**e6a, et a*., supraF. /t is te !act o! onersip o! te

cooperative, and not invo*ve#ent in te #ana$e#ent tereo!, ic disua*i)es a #e#ber !ro# 6oinin$ an *abor

or$ani%ation itin te cooperative. us, irrespective o! te de$ree o! teir participation in te actua*

#ana$e#ent o! te cooperative, a** #e#bers tereo! cannot !or#, assist or 6oin a *abor or$ani%ation !or te

purpose o! co**ective bar$ainin$.

espondent union !urter c*ai#s tat i! no#ina* onersip in a cooperative is Ienou$ to take aa te

constitutiona* protections aorded to *abor, ten tere ou*d be no indrance !or e#p*oers to $rant, on a

sce#e o! $enerous pro)t sarin$, stock bonuses to teir e#p*oees and terea!ter c*ai# tat since teir

e#p*oees are not stocko*ders Eo! te corporationF, a*beit in a #ini#a* and invo*untar #anner, te are no

a*so co-oners and tus disua*i)ed to !or# unions.I o a**o tis, BLU ar$ues, ou*d be Ito a**o te

Kood$ates o! destruction to be opened upon te ri$ts o! *abor ic te onstitution endeavors to protect and

ic e*!are it pro#ises to pro#ote.I Eo##ent o! BLU, p. 174 o**o, p. 177F.

e above contention o! respondent union is based on te erroneous presu#ption tat #e#bersip in a

cooperative is te sa#e as onersip o! stocks in ordinar corporations. Wi*e cooperatives #a e+ercise so#e o!

te ri$ts and privi*e$es $iven to ordinar corporations provided under e+istin$ *as, suc cooperatives en6o

oter privi*e$es not $ranted to te *atter E;ee ;ections 3, 5, G, and 8, :res. "ecree 0o. 1>54 ooperative ura*Bank o! "avao it v. @errer-a**e6a, supraF. ;i#i*ar*, #e#bers o! cooperatives ave ri$ts and ob*i$ations

dierent !ro# tose o! stocko*ders o! ordinar corporations. /t as precise* because o! te specia* nature o!

cooperatives, tat te ourt e*d in te "avao it case tat #e#bers-e#p*oees tereo! cannot !or# or 6oin a

*abor union !or purposes o! co**ective bar$ainin$. e ourt e*d tat?

cooperative ... is b its nature dierent !ro# an ordinar business concern bein$ run eiter b

persons, partnersips, or corporations. /ts oners andAor #e#bers are te ones o run and

operate te business i*e te oters are its e#p*oees. s above stated, irrespective o! te

nu#ber o! sares oned b eac #e#ber te are entit*ed to cast one vote eac in decidin$ upon

te aairs o! te cooperative. eir sare capita* earn *i#ited interest. e en6o specia*

privi*e$es as-e+e#ption !ro# inco#e ta+ and sa*es ta+es, pre!erentia* ri$t to supp* teir

products to ;tate a$encies and even e+e#ption !ro# te #ini#u# a$e *as.

n e#p*oee tere!ore o! suc a cooperative o is a #e#ber and co-oner tereo! cannot

invoke te ri$t to co**ective bar$ainin$ !or certain* an oner cannot bar$ain it i#se*! or is

co-oners.

/t is i#portant to note tat, in er order dated ;epte#ber 2, 1985, #ed-arbiter *nora . Ba**eras #ade a speci)c

)ndin$ tat tere are on* tirt-seven &=>( e#p*oees o! petitioner o are not #e#bers o! te cooperative and

o are, tere!ore, te on* e#p*oees o! petitioner cooperative e*i$ib*e to !or# or 6oin a *abor union !or

purposes o! co**ective bar$ainin$ Enne+ II o! te :etition, p. 124 o**o, p. 22F.


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rtic*e 25G o! te Labor ode provides, a#on$ oters, tat?

o ave a va*id, e*ection, at *east a #a6orit o! a** e*i$ib*e voters in te unit #ust ave cast teir

votes. e *abor union receivin$ te #a6orit o! te va*id votes cast sa** be certi)ed as te

e+c*usive bar$ainin$ a$ent o! a** orkers in te unit . . . E/ta*ics supp*ied.F

/n tis case it cannot be deter#ined eter or not respondent union as du* e*ected b te e*i$ib*e voters o!

te bar$ainin$ unit since even e#p*oees o are ine*i$ib*e to 6oin a *abor union itin te cooperative because

o! teir #e#bersip terein ere a**oed to vote in te certi)cation e*ection. onsiderin$ te !ore$oin$, te

ourt )nds tat respondent director co##itted $rave abuse o! discretion in certi!in$ respondent union as te

so*e and e+c*usive bar$ainin$ representative o! te rank and )*e e#p*oees o! petitioner cooperative.

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1.d benguet electric coop. v. ferrer-calleja

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