Monday, December 19, 2016

FILOIL REFINERY CORP V. FILOIL SUPERVISORY & CONFIDENTIAL EMPLOYEES ASSOCIATION GR NO. L-26736


Topic: Workers with right to self organization; supervisors

FACTS:
1.     Respondent association is a labor organization duly registered with the Department of Labor. It is composed exclusively of the supervisory and confidential employees of petitioner corporation. There exists another entirely distinct labor association composed of the corporation's rank-and-file employees, the Filoil Employees & Workers Association (FEWA) with which petitioner executed a collective bargaining agreement. This collective bargaining agreement expressly excluded from its coverage petitioner's supervisory and confidential employees, who in turn organized their own labor association, respondent herein.
2.     Respondent association filed on February 18, 1965 with the industrial court its petition for certification as the sole and exclusive collective bargaining agent of all of petitioner's supervisory and confidential employees working at its refinery in Rosario, Cavite.
3.     Petitioner corporation filed a motion to dismiss the petition on the grounds of lack of cause of action and of respondent court's lack of jurisdiction over the subject-matter, under its claim that supervisors are not employees within the meaning of Republic Act 875, the Industrial Peace Act, and that since they are part of management, they do not have the right to bargain collectively although they may organize an organization of their own.
4.     CIR: denied the dismissal motion. It ruled that under the express provisions of section 3 of the Industrial Peace Act, "(I)ndividuals employed as supervisors shall not be eligible for membership in a labor organization of employees under their supervision but may form separate organizations their own."
5.     Hence, this petition.


ISSUE/S: WON the supervisors (and confidential employees) has right to self organization?

RULING: YES, they (both) do.
Petitioner's arguments go in reality to the wisdom and policy of the Industrial Peace Act which expressly grants supervisors the right to organize and bargain collectively, which are beyond the Court's power of review. Thus, the argument that "it is axiomatic in the law of self-interest that an employer must give a "better deal" to those who act in his interest and in whom he has trust and confidence. These are the supervisors and confidential employees"  and that "In the United States there was a move to have a part of the supervisory group to be aligned with labor. But the enactment of the Taft-Hartley Act put an end to this move." 

1.     So with petitioner's thesis that "(T)o then give supervisors the right to compel employers to bargain would in effect align labor and management together against stockholders and bondholders (capital) and inexorably tilt the balance of power in favor of these hitherto confliction forces. This is contrary to the nature and philosophy of free enterprise." This further serves to point up the validity and rationale of the Industrial Peace Act's provision, since the supervisors and confidential employees, even though they may exercise the prerogatives of management as regards the rank and file employees are indeed employees in relation to their employer, the company which is owned by the "stockholders and bondholders (capital)" in petitioner's own words, and should therefore be entitled under the law to bargain collectively with the top management with respect to their terms and conditions of employment.
2.     Petitioner's argument that the express provisions of section 3 of our Industrial Peace Act must give way to the intendment of the Taft-Hartley Act which exempts employers from the legal obligation to recognize and negotiate with supervisors is tenuous and groundless. The language of our own statute is plain and unambiguous and admits of no other interpretation.
3.     The other principal ground of petitioner's appeal questioning the confidential employees' inclusion in the supevisors bargaining unit is equally untenable. Respondent court correctly held that since the confidential employee are very few in number and are by practice and tradition identified with the supervisors in their role as representives of management vis-a-vis the rank and file employee such identity of interest has allowed their inclusion in the bargaining unit of supervisors-managers for purposes of collective bargaining in turn as employees in relation to the company as their employer.
4.     No arbitrariness or grave abuse of discretion can be attributed against respondent court's allowing the inclusion of the confidential employees in the supervisors' association for as admitted by petitioner itself, supra, the supervisors and confidential emplyees enjoy its trust and confidence. Thisidentity of interest logically calls for their inclusion in the same bargaining unit and at the same time fulfills the law's objective of insuring to them the full benefit of their right to self-organization and to collective bargaining, which could hardly be accomplished if the respondent association's membership were to be broken up into five separate ineffective tiny units, as urged by petitioner.

DISPOSITIVE: Filoil supervisors and confidential employees won.


DOCTRINE: Section 3 of the Industrial Peace Act "explicitly provides that "employees" — and this term includes supervisors — "shall have the right to self-organization, and to form, join or assist labor organizations of their own choosing for the purpose of collective bargaining through representations of their own choosing and to engage in concerted activities for the purpose of collective bargaining and other mutual aid or protection" and that "individuals employed as supervisors ... may form separate organizations of their own". Indeed, it is well settled that "in relation to his employer," a foreman or supervisor "is an employee within the meaning of the Act" ... For this reason, supervisors are entitled to engage in union activities and any discrimination against them by reason thereof constitutes an unfair labor practice."

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