Belyca Corporation v. Calleja

Topic:  Appropriate Bargaining Unit: Law and Definition

FACTS:

In the instant case, private respondent Associated Labor Union (ALU)-TUCP, seeks direct certification as the sole and exclusive bargaining agent of all the rank-and-file workers of the livestock and agro division of petitioner BELYCA Corporation engaged in piggery, poultry raising and the planting of agricultural crops such as corn, coffee and various vegetables. Private respondents in their petition allege the following:

(1) that there is no existing collective bargaining agreement between the respondent employer, petitioner herein, and any other existing legitimate labor unions;

(2) that there had neither been a certification election conducted in the proposed bargaining unit within the last twelve (12) months prior to the filing of the petition nor a contending union requesting for certification as the sole and exclusive bargaining representative in the proposed bargaining unit;

(3) that more than a majority of respondent employer's rank-and-file employees/workers in the proposed bargaining unit or one hundred thirtyeight (138) as of the date of the filing of the petition, have signedmembership with the ALU-TUCP and have expressed their written consent and authorization to the filing of the petition; and

(4) that in response to petitioner union's two letters to the proprietor/General Manager of respondent employer, dated April 21, 1986 and May 8, 1986, requesting for direct recognition as the sole and exclusive bargaining agent of the rank-and-file workers, respondent employer has locked out 119 of its rank-and-file employees in the said bargaining unit and had dismissed earlier the local union president, vice-president and three other active members of the local unions for which an unfair labor practice case was filed by petitioner union against respondent employer.

Belyca, on the other hand, alleged in its position paper the following:

(1) that due to the nature of its business, very few of its employees are permanent, the overwhelming majority of which are seasonal and casual and regular employees;

(2) that of the total 138 rank-and-file employees who authorized, signed and supported the filing of the petition: (a) 14 were no longer working as of June 3, 1986; (b) 4 resigned after June, 1986; (c) 6 withdrew their membership from petitioner union; (d) 5 were retrenched on June 23, 1986; (e) 12 were dismissed due to malicious insubordination and destruction of property and; (f) 100 simply abandoned their work or stopped working;

(3) that the 128 incumbent employees or workers of the livestock section were merely transferred from the agricultural section as replacement for those who have either been dismissed, retrenched or resigned; and

(4) that the statutory requirement for holding a certification election has not been complied with by the union. The petitioner contends that the bargaining unit must include all the workers in its integrated business concerns ranging from piggery, poultry, to supermarts and cinemas so as not to split an otherwise single bargaining unit into fragmented bargaining units.

ISSUE: WON the proposed bargaining unit by Belyca is an appropriate bargaining unit.

HELD:  No.

According to Rothenberg, a proper bargaining unit maybe said to be a group of employees of a given employer, comprised of all or less than all of the entire body of employees, which the collective interests of all the employees, consistent with equity to the employer, indicate to be best suited to serve reciprocal rights and duties of the parties under the collective bargaining provisions of the law.

This Court has already taken cognizance of the crucial issue of determining the proper constituency of a collective bargaining unit. Among the factors considered in Democratic Labor Association v. Cebu Stevedoring Co. Inc. (103 Phil 1103[1958]) are: "(1) will of employees (Glove Doctrine); (2) affinity and unity of employee's interest, such as substantial similarity of work and duties or similarity of compensation and working conditions; (3) prior collective bargaining history; and (4) employment status, such as temporary, seasonal and probationary employees".

Under the circumstances of that case, the Court stressed the importance of the fourth factor and sustained the trial court's conclusion that two separate bargaining units should be formed in dealing with respondent company, one consisting of regular and permanent employees and another consisting of casual laborers or stevedores. Otherwise stated, temporary employees should be treated separately from permanent employees. But more importantly, this Court laid down the test of proper grouping, which is community and mutuality of interest.

It is beyond question that the employees of the livestock and agro division of petitioner  corporation perform work entirely different from those performed by employees in the supermarts and cinema. Among others, the noted difference  are: their working conditions, hours of work, rates of pay, including the categories of their positions and employment status. To lump all the employees of petitioner in its integrated business concerns cannot result in an efficacious bargaining unit comprised of constituents enjoying a community or mutuality of interest

DISPOSITIVE: Calleja won. Petition Dismissed.

DOCTRINE:

Factors to consider to determine an appropriate bargaining unit:

(1) will of employees (Glove Doctrine);

(2) affinity and unity of employee's interest, such as substantial similarity of work and duties or similarity of compensation and working conditions;

(3) prior collective bargaining history; and

(4) employment status, such as temporary, seasonal and probationary employees".