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[Confidential Employees – Doctrine of Necessary o 18 of these affected employees are QA Sampling

Implication] Inspectors/Inspectresses and Machine Gauge

10 TUNAY NA PAGKAKAISA NG MGA MANGGAGAWA V. ASIA Technician who formed part of the Quality Control Staff.
BREWERY INC o 20 checkers are assigned at the Materials Dept. of the
August 3, 2010 | Villarama, J. | Administration Division, Full Goods Dept. of the
Brewery Division and Packaging Division.
Doctrine: Confidential employees are defined as those who: o The rest are secretaries/clerks directly under their
(1) assist or act in a confidential capacity, respective division managers.
(2) to persons who formulate, determine, and effectuate  BLMA-INDEPENDENT brought the matter to the grievance
management policies in the field of labor relations. machinery. As the parties failed to amicably settle the
The two (2) criteria are cumulative, and both must be met if an controversy, BLMA-INDEPENDENT lodged a complaint before
employee is to be considered a confidential employee—that is, the the NCMB.
confidential relationship must exist between the employee and his VA: The subject employees are eligible for inclusion within the
supervisor, and the supervisor must handle the prescribed bargaining unit represented by BLMA-INDEPENDENT.
responsibilities relating to labor relations. The exclusion from  The positions of the subject employees qualify under the rank-
bargaining units of employees who, in the normal course of their and-file category because their functions are merely routinary
duties, become aware of management policies relating to labor and clerical.
relations is a principal objective sought to be accomplished by the  The positions occupied by the checkers and secretaries/clerks
“confidential employee rule.” in the different divisions are not managerial or supervisory.
 With respect to QA Sampling Inspectors/Inspectresses and
Facts: Machine Gauge Technician, ABI failed to establish with
 Respondent Asia Brewery, Inc. (ABI) entered into a CBA, sufficient clarity their basic functions as to consider them
effective for 5 years (Aug. 1, 1997 to July 31, 2002), with Bisig Quality Control Staff who were excluded from the coverage of
at Lakas ng mga Manggagawa sa Asia-Independent (BLMA- the CBA.
INDEPENDENT), the exclusive bargaining representative of CA: reversed the VA
ABI’s rank-and-file employees.  The 81 employees are excluded from and are not eligible for
 On Oct. 3, 2000, ABI and BLMA-INDEPENDENT signed a inclusion in the bargaining unit.
renegotiated CBA effective from Aug. 1, 2000 to 31 July 2003.
o Article I1 of the CBA defined the scope of the BLMA-INDEPENDENT filed a MR.
bargaining unit.
 Subsequently, a dispute arose when ABI’s management In the meantime, a certification election was held on Aug. 10,
stopped deducting union dues from 81 employees, believing 2002 wherein petitioner Tunay na Pagkakaisa ng Manggagawa
that their membership in BLMA-INDEPENDENT violated the sa Asia (TPMA) won. As the incumbent bargaining representative
CBA. of ABI’s rank-and-file employees, petitioner filed with the CA an
omnibus MR of the decision and intervention.

Both motions were denied by the CA. Hence, this appeal

1 Section 1. Recognition. … The UNION shall not represent or accept for by certiorari (Rule 45) filed by petitioner.
membership employees outside the scope of the bargaining unit herein defined.
Section 2. Bargaining Unit. The bargaining unit shall be comprised of all regular
rank-and-file daily-paid employees of the COMPANY. However, the following
jobs/positions shall be excluded from the bargaining unit: Issue:
6. Confidential and Executive Secretaries 1. W/N the secretaries/clerks in this case are confidential
12. Purchasing and Quality Control Staff employees?
2. W/N checkers as “quality control staff” are confidential their formulas" which are considered `trade secrets'. Such
employees? allegations of respondent must be supported by evidence.
3. W/M ABI’s unilateral act of stopping the deduction of union  Confidential employees are defined as those who (1) assist
dues from subject employees constitute unfair labor or act in a confidential capacity, (2) to persons who formulate,
practice since it restrains the worker’s right to self determine, and effectuate management policies in the field of
organization? labor relations. The two (2) criteria are cumulative, and both
Held: must be met if an employee is to be considered a confidential
1. NO. employee - that is, the confidential relationship must exist
 Although Article 245 of the Labor Code limits the ineligibility to between the employee and is supervisor, and the supervisor
join, form and assist any labor organization to managerial must handle the prescribed responsibilities relating to labor
employees, jurisprudence has extended this prohibition to relations. The exclusion from bargaining units of employees
confidential employees or those who by reason of their who, in the normal course of their duties, become aware of
positions or nature of work are required to assist or act in a management policies relating to labor relations is a principal
fiduciary manner to managerial employees and hence, are objective sought to be accomplished by the "confidential
likewise privy to sensitive and highly confidential records. employee rule."
Confidential employees are thus excluded from the rank-and- 3. NO.
file bargaining unit.  For a charge of unfair labor practice to prosper, it must be
 The rationale for their separate category and disqualification shown that ABI was motivated by ill will, "bad faith, or fraud, or
to join any labor organization is similar to the inhibition for was oppressive to labor, or done in a manner contrary to
managerial employees because if allowed to be affiliated with morals, good customs, or public policy, and, of course, that
a Union, the latter might not be assured of their loyalty in view social humiliation, wounded feelings or grave anxiety resulted
of evident conflict of interests and the Union can also become x x x".
company-denominated with the presence of managerial  Considering that the herein dispute arose from a simple
employees in the Union membership. Having access to disagreement in the interpretation of the CBA provision on
confidential information, confidential employees may also excluded employees from the bargaining unit, respondent
become the source of undue advantage. Said employees may cannot be said to have committed unfair labor practice that
act as a spy or spies of either party to a collective bargaining restrained its employees in the exercise of their right to self-
agreement organization, nor have thereby demonstrated an anti-union
 In this case, perusal of the job descriptions of these stance.
secretaries/clerks reveals that their assigned duties and Dispositive
responsibilities involve routine activities of recording and WHEREFORE, the petition is GRANTED. The Decision dated
monitoring. ABI failed to indicate who among these November 22, 2002 and Resolution dated January 28, 2004 of the
secretaries/clerks have access to confidential data relating to Court of Appeals in CA-G.R. SP No. 55578 are hereby REVERSED
management policies that could give rise to potential conflict and SET ASIDE. The checkers and secretaries/clerks of respondent
of interest with their Union membership company are hereby declared rank-and-file employees who are
2. NO. eligible to join the Union of the rank-and-file employees.
 Again, the job descriptions of these checkers plainly showed
that they perform routine and mechanical tasks preparatory to No costs.
the delivery of the finished products. No evidence was
presented by the respondent to prove that these daily-paid SO ORDERED.
checkers actually form part of the company's Quality Control Notes
Staff who as such "were exposed to sensitive, vital and Insert notes
confidential information about [company's] products" or "have
knowledge of mixtures of the products, their defects, and even