Topic: Confidential
Employees
FACTS:
Private
respondent Metro Drug Corporation Employees Association-Federation of Free
Workers (hereinafter referred to as the Union) is a labor organization
representing the rank and file employees of petitioner Metrolab Industries,
Inc. (hereinafter referred to as Metrolab/MII) and also of Metro Drug, Inc.
The Collective Bargaining Agreement (CBA) between Metrolab and the Union expired. The negotiations for a new CBA, however, ended in a deadlock.
The Union filed a notice of strike against Metrolab and Metro Drug Inc.
The parties failed to settle their dispute despite the conciliation efforts of the National Conciliation and Mediation Board.
SECRETARY OF LABOR Ruben D. Torres: issued an assumption order of jurisdiction over the entire labor dispute at Metro Drug, Inc. - Metro Drug Distribution Division and Metrolab Industries Inc.
SECRETARY OF LABOR: issued an order resolving all the disputed items in the CBA and ordered the parties involved to execute a new CBA.
The Union filed a Motion for Reconsideration (MR).
During the pendency of the MR, Metrolab laid off 94 of its rank and file employees.
The Union filed a motion for a cease and desist order to enjoin Metrolab from implementing the mass layoff, alleging that such act violated the prohibition against committing acts that would exacerbate the dispute as specifically directed in the assumption order.
Metrolab contended that the layoff was temporary and in the exercise of its management prerogative.
Thereafter, on various dates, Metrolab recalled some of the laid off workers on a temporary basis due to availability of work in the production lines.
ACTING SEC. OF LABOR Nieves Confesor: a resolution declaring the layoff of Metrolabs 94 rank and file workers illegal and ordered their reinstatement with full backwages.
After exhaustive negotiations, the parties entered into a new CBA. The execution, however, was without prejudice to the outcome of the issues raised in the reconsideration and clarification motions submitted for decision to the Secretary of Labor.
The Union filed a motion for execution. Metrolab opposed.
Hence, the present petition for certiorari with application for issuance of a Temporary Restraining Order.
ISSUES:
1. Whether or not public respondent Labor
Secretary committed grave abuse of discretion and exceeded her jurisdiction in
declaring the subject layoffs instituted by Metrolab illegal on grounds that
these unilateral actions aggravated the conflict between Metrolab and the Union
who were, then, locked in a stalemate in CBA negotiations.
2. Whether or not the Public Respondent
Secretary of DOLE gravely abused her discretion in including executive
secretaries as part of the bargaining unit of the rank and file employees
RULING:
1.
NO,
because the Secretary of Labor is expressly given the power under the Labor
Code to assume jurisdiction and resolve labor disputes involving industries
indispensable to national interest. The
disputed injunction is subsumed under this special grant of authority.
Art. 263 (g) of the
Labor Code specifically provides that:
xxx xxx xxx
(g) When, in his opinion, there exists a
labor dispute causing or likely to cause a strike or lockout in an industry
indispensable to the national interest, the Secretary of Labor and Employment
may assume jurisdiction over the dispute and decide it or certify the same to
the Commission for compulsory arbitration. Such assumption or certification
shall have the effect of automatically enjoining the intended or impending strike
or lockout as specified in the assumption or certification order. If one has already taken place at the
time of assumption or certification, all striking or locked out employees shall
immediately return to work and the employer shall immediately resume operations
and readmit all workers under the same terms and conditions prevailing before
the strike or lockout. The
Secretary of Labor and Employment or the Commission may seek the assistance of
law enforcement agencies to ensure compliance with this provision as well as with such orders as he
may issue to enforce the same.
2. NO, because Article I (b) of the 1988-1990
CBA provides:
b)Close Shop. - All Qualified Employees must
join the Association immediately upon regularization as a condition for
continued employment. This
provision shall not apply to: (i) managerial employees who are excluded from
the scope of the bargaining unit; (ii) the auditors and executive secretaries
of senior executive officers, such as, the President, Executive Vice-President,
Vice-President for Finance, Head of Legal, Vice-President for Sales, who are excluded from membership in the
Association; and (iii) those
employees who are referred to in Attachment I hereof, subject, however, to the
application of the provision of Article II, par. (b) hereof. Consequently, the
above-specified employees are not required to join the Association as a
condition for their continued employment.
On the other hand,
Attachment I provides:
Exclusion from the
Scope of the Close Shop Provision
The following
positions in the Bargaining Unit are not covered by the Close Shop provision of
the CBA (Article I, par. b):
1. Executive Secretaries of Vice-Presidents,
or equivalent positions.
2. Executive Secretary of the Personnel
Manager, or equivalent positions.
3. Executive Secretary of the Director for
Corporate Planning, or equivalent positions.
4. Some personnel in the Personnel
Department, EDP Staff at Head Office, Payroll Staff at Head Office, Accounting
Department at Head Office, and Budget Staff, who because of the nature of their
duties and responsibilities need not join the Association as a condition for
their employment.
5. Newly-hired secretaries of Branch Managers
and Regional Managers.
Both Metro Drug and
Metrolab read the exclusion of managerial employees and executive secretaries
as exclusion from the bargaining unit. They
point out that managerial employees are lumped under one classification with
executive secretaries, so that since the former are excluded from the
bargaining unit, so must the latter be likewise excluded.
The exclusion of
managerial employees, in accordance with law, must therefore still carry the
qualifying phrase from the bargaining unit in Article I (b)(i) of the 1988-1990
CBA. In the same manner, the
exclusion of executive secretaries should be read together with the qualifying
phrase are excluded from membership in the Association of the same Article and
with the heading of Attachment I. The
latter refers to Exclusions from Scope of Close Shop Provision and provides
that [t]he following positions in Bargaining Unit are not covered by the close
shop provision of the CBA.
The basis for the
questioned exclusions, it should be noted, is no other than the previous CBA
between Metrolab and the Union. If
Metrolab had undergone an organizational restructuring since then, this is a
fact to which we have never been made privy. In any event, had this been
otherwise the result would have been the same. To repeat, we limited the exclusions
to recognize the expanded scope of the right to self-organization as embodied in the Constitution.
The Court concurs
with Metrolab contention that executive secretaries of the General Manager and
the executive secretaries of the Quality Assurance Manager, Product Development
Manager, Finance Director, Management System Manager, Human Resources Manager,
Marketing Director, Engineering Manager, Materials Manager and Production
Manager, who are all members of the company’s Management Committee should not
only be exempted from the closed-shop provision but should be excluded from
membership in the bargaining unit of the rank and file employees as well on
grounds that their executive secretaries are confidential employees, having access to vital labor information.
Confidential employees
cannot be classified as rank and file.
The nature of employment of confidential employees is quite distinct
from the rank and file, thus, warranting a separate category. Excluding confidential employees from
the rank and file bargaining unit, therefore, is not tantamount to
discrimination.
DISPOSITIVE: Metrolab Industries
Inc. partially won. The executive secretaries of petitioner Metrolabs General
Manager and the executive secretaries of the members of its Management
Committee are excluded from the bargaining unit of petitioners rank and file
employees.
DOCTRINE: Although Article 245
of the Labor Code limits the ineligibility to join, form and assist any labor
organization to managerial employees, jurisprudence has extended this
prohibition to confidential employees or those who by reason of their positions
or nature of work are required to assist or act in a fiduciary manner to
managerial employees and hence, are likewise privy to sensitive and highly
confidential records.
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