Atlas Lithographic v LaguesmaJanuary 6, 1992J. Gutierrez

SUMMARY: Supervisory employees affiliated with a national labor organization that also represents the rank-and-file employees in the same company. PCE filed by the national labor organization was opposed citing A245 of the LC. The SC held that the supervisors cannot affiliate with a national federation of labor organizations which includes the rank-and-file employees which are subordinates of these supervisors.

DOCTRINE:The prohibition by the law is not confined to supervisors joining a rank-and-file local union. It extends to a supervisors' local union applying for membership in a national federation the members of which include local unions of rank-and-file employees.

FACTS: July 16, 1990 - supervisory, administrative personnel, production, accounting and confidential employees of ALSI affiliated with Kaisahan ng Manggagawang Pilipino (Kampil-Katipunan), a national labor organization. The local union became ALSI-SAPPACEA-KAMPIL (supervisors union).

Kampil-Katipunan filed on behalf of the supervisors union a petition for certification election so that it could be the sole and exclusive bargaining agent of the supervisory employees.

Opposition to the PCE filed. As per Article 245 of the Labor Code, Kampil-Katipunan cannot represent the supervisory employees for collective bargaining purposes because it also represents the rank-and-file employees' union.

ISSUE and RATIO: WON, under A245 of the LC, a local union of supervisory employees may be allowed to affiliate with a national federation of labor organizations of rank-and-file employees and which national federation actively represents its affiliates in collective bargaining negotiations with the same employer of the supervisors and in the implementation of resulting collective bargaining agreements.

SC: Under the Industrial Peace Act of 1953, the employees are classified into (1) managerial (2) supervisors and (3) rank-and-file. Supervisors could join a union but not a union of rank-and-file employees.

Under the Labor Code (PD 442) enacted in 1974, classification is managerial and rank-and-file employees. The category of supervisors and their right to organize under were not recognized. In Bulletin Publishing Corporation vs. Sanchez, the SC held that the superseding labor law has removed from supervisors the right to unionize among themselves. As per Sec11, Rule II, Book V of the Omnibus Rules implementing PD 442, the supervisory unions existing since the effectivity of the New Code ceased to operate as such and the members who did not qualify as managerial employees under A212 (k) became eligible to form, to join or assist a rank-and-file union.

RA 6715 revised the Labor Code in March 1989. Reclassification into (1) managerial (2) supervisors and (3) the rank-and-file. Supervisory employees are once again recognized. Reason behind this recognition of the right of supervisors to organize provided that they shall not join or assist in the organization of rank-and-file employees. The interests and functions of supervisors and rank-and-file employees are separate and distinct.

Supervisory ee are allowed to form their own union but are not allowed to join r&f ee because of conflict of interests

The peculiar role of supervisors = while not managers, recommend action implementing company policy or ask for discipline of ee = identify with the managements interest

Case at bar

There is a conflict of interest

conflict of interest may arise in the areas of discipline collective bargaining and strikes.

Discipline Members of the supervisory union might refuse to carry out disciplinary measures against their co-member rank-and-file employees.

CB These two also have different needs in bargaining.

STRIKESWhen a strike is held, the national federation might influence the supervisors' union to conduct a sympathy strike on the sole basis of affiliation.

Adamson not appAdamson case is inapplicable.1. The rank-and-file in that case are not directly under the supervisors who comprise the supervisors' union. a. Here, directly under

2. The national union in Adamson also did not actively represent its local chapters.a. Here, the fed was even the one which filed pet for cert ele

Thus, if the law intended to avoid a situation where supervisors would merge with the rank-and-file or where the supervisors' labor organization would represent conflicting interests, then a local supervisors' union should not be allowed to affiliate with the national federation of union of rank-and-file employees where that federation actively participates in union activity in the company.

The SC also held that the prohibition is not confined to supervisors joining a rank-and-file local union. It extends to a supervisors' local union applying for membership in a national federation the members of which include local unions of rank-and-file employees.

DISPOSITIVE: Petition is granted. The private respondent is disqualified from affiliating with a national federation of labor organizations which includes the petitioner's rank-and-file employees.