University of San Carlos Labor Standards Midterm Case Digests 12 Singer Sewing Machine vs NLRC () 193 SCRA 271

F acts: S inger Machine Collectors Union Baguio filed a petition for direct certification as the sole and exclusivebargaining agent of all collectors of S inger S ewing Machine. The company opposed the petition mainlybecause the union members are not employees but independent contractors as evidenced by the collectionagency agreement which they signed.Med -A rbiter ruled that there exists an employee employer relationship and granted the certification electionwhich was affirmed by S ec. Drilon. The company files the present petition on the determination of therelationship. The union insist that the provisions of the Collection A greement belie the company union members are independent contractors. Issue: WON there exists an employer employee relationship between the parties. H eld: Respondents are not employees of the company.The present case calls for the application of the control test, which if not satisfied, would lead to theconclusion that no employee employer relationship exists. I f the union members are not employees, no rightto organize for the purpose of bargaining or as a bargaining agent cannot be recognized.The following elements are generally considered in the determination of the relationship: the selection andengagement of the employee, payment of wages, power of dismissal and the power to control theemployee which is the most important element.The nature of the relationship between a company and its collecting agents depends on the circumstances of each particular relationship. Not all collecting agents are employees and neither are all collecting

agentsindependent contractors. The agreement confirms the status of the collecting agents as independentcontractor. The re q uirement that collection agents utilize only receipt forms and report forms issued by thecompany and that reports shall be submitted at least once a week is not necessarily an indication of controlover the means by which the job collection is to be performed. E ven if report re q uirements are to be calledcontrol measures, any control is only with respect to the end result of the collection since the re q uirementsregulate the things to be done after the performance of the collection job or the rendition of service.The plain language of the agreement reveals that the designation as collection agent does not create anemployment relationship and that the applicant is to be considered at all times as an independent contractor.The court finds that since private respondents are not employees of the company, they are not entitled tothe constitutional right to form or join a labor organization for the purposes of collective bargaining. There isno constitutional and legal basis for their union to be granted their petition for direct certification .