SIS Employees and Workers Union (SIS-EWU) is the exclusive bargaining representative of the rank-and-file employees of SIS Corporation. The Collective Bargaining Agreement between SIS Corporation and SIS-EWU contains a union security clause that requires all rank-and-file employees of the company to be union members in good standing as a condition for employment. Yolanda, the treasurer of SIS-EWU, was accused of, and thereafter, found guilty of malversation of union funds by the union’s Disciplinary Committee. She was thus expelled from the union. Aggrieved, Yolanda appealed the decision. In the meantime, the president of SIS-EWU went to SIS’s Human Resource Department (HRD) and asked that Yolanda be dismissed from employment. However, Jun, the HRD manager of SIS, explained that the company cannot terminate Yolanda on such ground. He further advised the union to settle the matter with the Labor Relations Division of the Department of Labor and Employment, which has jurisdiction over intra-union disputes. Is Jun correct? Explain.
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Yes, Jun is correct. The company cannot terminate Yolanda while her union expulsion remains pending appeal. Under labor law (Alabang Country Club v. NLRC), enforcing a union security clause requires that the expulsion decision be final,
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Quick check
Under the doctrine in Alabang Country Club v. NLRC, why was Jun correct in refusing to dismiss Yolanda pursuant to the union security clause?
An employer cannot validly terminate an employee under a union security clause while the employee's expulsion from the union remains unfinalized and pending internal appeal.
Under Article 232 of the Labor Code, which agency or division has jurisdiction over controversies arising from expulsion from union membership?
Disputes regarding expulsion from union membership constitute intra-union disputes falling under the jurisdiction of the Labor Relations Division of DOLE.
Which of the following is an essential requisite for an employer to validly terminate an employee pursuant to a union security clause?
Terminating an employee under a union security clause requires an applicable clause, a union demand, and a final expulsion decision supported by evidence and due process.
What is the legal effect if an employer prematurely terminates an employee based on a union expulsion decision that is still pending appeal?
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Why did HR Manager Jun correctly advise the union to elevate the expulsion controversy to the Labor Relations Division of DOLE?
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Learn more about these topics
1. Union Security Clause
A union security clause in a collective bargaining agreement requires employees to maintain union membership in good standing as a condition of continued employment. While enforcing a union security clause is recognized as a valid ground for termination, an employer cannot automatically dismiss an employee upon the union's request. To validly terminate employment under a union security clause, three essential requisites must concur: the union security clause is applicable, the bargaining union requests its enforcement, and there is sufficient evidence supporting the union's decision to expel the employee.
2. Intra-Union Jurisdiction
Under Article 232 of the Labor Code, intra-union disputes fall under the original and exclusive jurisdiction of the Bureau of Labor Relations and DOLE regional offices. An intra-union dispute encompasses conflicts between a labor organization and its members, including controversies arising from expulsion, disciplinary action, and violations of the union's constitution and by-laws. Because employers must remain neutral in internal union affairs, disputes concerning the validity of a member's expulsion must be adjudicated before DOLE labor relations officers rather than resolved unilaterally by management.
3. Procedural Due Process
The enforcement of a union security clause must strictly adhere to procedural due process to prevent arbitrary dismissals. An expulsion decision by a union disciplinary body does not warrant immediate termination if the affected employee has seasonably appealed pursuant to the union's constitution. Until the intra-union appeal is resolved and the expulsion becomes final, the employee retains union membership in good standing. Terminating an employee based on an unfinalized expulsion decision violates due process, exposing the employer to liability for illegal dismissal.