528 UPCSU v Laguesma

March 28, 1998 G.R.. No. 122226 Mendoza, J.

Article 3, Section 8 Sigrid B. Adarlo
Petitioners: United Pepsi-Cola Supervisory Respondents: Hon. Bienvenido E. Laguesma
Union (UPSU) and Pepsi-Cola Products, Philippines, Inc.
Doctrine:
Managerial employees are prohibited from joining labor unions due to a possible conflict of
interest between being affiliated with a union and their position within the organization.

Facts:
1. UPCSU is a union of supervisory employees, who filed a petition for certification
election on behalf of route managers at Pepsi-Cola Products Phils., Inc.
2. However, the med-arbiter and the Secretary denied the petition on the ground that the
route managers are managerial employees, making them ineligible for union
membership under Art 245 of the Labor Code.
• Ineligibility of managerial employees to join any labor organization; right of
supervisory employees.— Managerial employees are not eligible to join, assist or
form any labor organization.
3. The Union brought up a suit contending the validity of the order of the Secretary of
Labor and Employment. The suit was dismissed as the Union failed to show that the
Secretary of Labor and Employment committed grave abuse of discretion.
4. The Union filed for an MR contending that first sentence of Art. 245 of the Labor Code,
contravenes Article 3, Section 8 of the Constitution.
Issue/s: Ruling:
1. WON the route managers are managerial employees 1. YES
2. WON Art. 245 violates Art. 3, Sec. 8 of the 1987 Constitution as it 2. NO
prohibits managerial employees from forming, joining or assisting
labor unions.
Rationale/Analysis/Legal Basis:
1. Managerial employees fall into two separate categories – managers per se &
supervisors.
Managers per se, also called top and middle managers, are those who are authorized
to plan, implement and control strategic and operational policies. On the other hand,
supervisors are those who are tasked to ensure that such policies are carried out by the
rank-and-file employees of the organization. As decided previously in an administrative
proceeding under the Secretary of Labor and Employment, route managers are
managerial employees. For one to be regarded as a managerial employee, there must
be a clear showing of the exercise of managerial attributes state in Art. 212 of the Labor
Code, as amended. In this case, the route managers cannot be classified as supervisors
as their work is more than simple direction or supervision of employees.

2. Art. 245 (now Article 255 of the Labor Code) separated the definitions of managerial
employees from supervisory employees.
When the Labor Code was enacted, the managerial employees were prevented from
joining unions as there might be a conflict of interest due to their loyalty to the union
and their position in the organization.