2010 Labor Law, Q15

Samahang Manggagawa ng Terracota, a union of supervisory employees at Terracota Inc., recently admitted a member of the company’s managerial staff, A, into the union ranks.
Should A be a member of the supervisory union? Explain. (2%)
Assuming that A is ineligible to join the union, should the registration of Samahang Manggagawa ng Terracota be cancelled? Explain. (3%)

Quick check

What is the statutory rule under Article 255 of the Labor Code regarding managerial employees and labor unions?

Under R.A. 9481, what is the legal effect when a managerial employee is admitted into a supervisory labor union?

Which of the following constitutes an exclusive statutory ground for cancelling a labor union's registration under Article 247?

How does Philippine labor law define a managerial employee for purposes of union ineligibility?

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What action should be taken if a rival union files a petition to cancel a union's registration based solely on commingling?

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1. Managerial Employee Disqualification
Under Article 255 of the Labor Code, managerial employees are explicitly disqualified from joining, assisting, or forming any labor organization. A managerial employee is defined as one who is vested with powers or prerogatives to lay down and execute management policies, hire, transfer, suspend, lay off, recall, discharge, assign, or discipline employees. Because managerial employees represent management's interest, allowing them into union ranks creates an inherent conflict of interest that subverts the collective bargaining process.

2. Commingling of Ranks
Inclusion of ineligible employees in a labor union—often referred to as commingling—does not invalidate the union's registration. Under Article 256 of the Labor Code, as amended by Republic Act No. 9481, the commingling of rank-and-file, supervisory, or managerial employees in a labor organization is no longer a legal ground for cancelling union registration. Instead, any ineligible employee included in the union's membership roster is automatically deemed removed from membership by operation of law.

3. Exclusive Cancellation Grounds
Article 247 of the Labor Code establishes an exclusive list of grounds for the cancellation of union registration, which is strictly limited to misrepresentation, false statements, or fraud in connection with the adoption or ratification of the constitution and bylaws, the election of officers, or the creation of a charter leaf. Statutory grounds for cancellation are exclusive and strictly construed. Labor tribunals cannot cancel a union's registration for administrative mix-ups or the improper admission of disqualified members.

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