Alliance of Nationalist and Genuine Labor Organization vs. Samana 258 SCRA 371

Topic: When a local union should disaffiliate

FACTS:

Petitioner ANGLO is a duly registered labor organization while respondent Union is its affiliate. In representation of SAMANA BAY, ANGLO entered and concluded a Collective Bargaining Agreement (CBA) with Manila Bay Spinning Mills and J.P. Coats Manila Bay, Inc. (the corporations)

The Executive Committee of SAMANA BAY decided to disaffiliate from ANGLO in view of the latter’s dereliction of its duty to promote and advance the welfare of SAMANA BAY and the alleged cases of corruption involving the federation officers. Said disaffiliation was unanimously confirmed by the members of SAMANA BAY

A petition to stop remittance of federation dues to ANGLO was filed by SAMANA BAY with the BLR.The corporations, despite having been furnished copies of the union resolution relating to said disaffiliation, refused to honor the same

ANGLO counteracted by unseating all officers and board members of SAMANA BAY and appointing in their stead, a new set of officers who were duly recognized by the corporations. Disaffiliation as void considering that a CBA is still existing and the freedom period has not yet set in

ISSUE: Whether or not the disaffiliation was valid

HELD: YES

RATIO:

All employees enjoy the right to self-organization and to form and join labor organizations of their own choosing for the purpose of collective bargaining. This is a fundamental right of labor and derives its existence from the Constitution. In interpreting the protection to labor and social justice provisions of the Constitution and the labor laws, rules or regulations, we have always adopted the liberal approach which favors the exercise of labor rights.

This Court is not ready to bend this principle to yield to a mere procedural defect, to wit: failure to observe certain procedural requirements for a valid disaffiliation. Non-compliance with the procedure on disaffiliation, being premised on purely technical grounds cannot rise above the fundamental right of self- organization.

We quote, with approval, the findings of herein public respondent, that:

"x x x the resolution of the general membership ratifying the disaffiliation action initiated by the Board, substantially satisfies the procedural requirements for disaffiliation. No doubt was raised on the support of the majority of the union members on the decision to disaffiliate."

This, to our mind, is clearly supported by the evidence. ANGLO's alleged acts inimical to the interests of respondent union have not been sufficiently rebutted. It is clear under the facts that respondent union's members have unanimously decided to disaffiliate from the mother federation and ANGLO has nothing to offer in dispute other than the law prohibiting the disaffiliation outside the freedom period.

A local union has the right to disaffiliate from its mother union when circumstances warrant. Generally, a labor union may disaffiliate from the mother union to form a local or independent union only during the 60-day freedom period immediately preceding the expiration of the CBA. However, even before the onset of the freedom period, disaffiliation may be carried out when there is a shift of allegiance on the part of the majority of the members of the union

A local labor union is a separate and distinct unit primarily designed to secure and maintain an equality of bargaining power between the employer and their employee-members. A local union does not owe its existence to the federation with which it is affiliated. It is a separate and distinct voluntary association owing its creation to the will of its members. The mere act of affiliation does not divest the local union of its own personality, neither does it give the mother federation the license to act independently of the local union. It only gives rise to a contract of agency where the former acts in representation of the latter.

By SAMANA BAY's disaffiliation from ANGLO, the vinculum that previously bound the two entities was completely severed. ANGLO was divested of any and all power to act in representation of SAMANA BAY. Thus, any act performed by ANGLO affecting the interests and affairs of SAMANA BAY, including the ouster of herein individual private respondents, is rendered without force and effect.

DISPOSITIVE: Respondent WON.

DOCTRINE: All employees enjoy the right to self-organization and to form and join labor organizations of their own choosing for the purpose of collective bargaining. This is a fundamental right of labor and derives its existence from the Constitution. In interpreting the protection to labor and social justice provisions of the Constitution and the labor laws, rules or regulations, we have always adopted the liberal approach which favors the exercise of labor rights.

Non-compliance with the procedure on disaffiliation, being premised on purely technical grounds cannot rise above the fundamental right of self- organization