Benguet Electric Cooperative v.

Ferrer-Calleja
Dec. 29, 1989

Doctrine: The right to collective bargaining is not available to an employee of a cooperative who
at the same time is a member and co-owner thereof.

In a petition for direct certification, BWLU-ADLO contended that it was the sole and exclusive
bargaining representative of all rank and file employees of BENECO. BELU opposed the
petition contending that it was certified as the sole and exclusive bargaining representative of
the subject workers. BENECO filed a motion to dismiss contending that the employees sought
to be represented by BWLU-ADLO were ineligible to form, join, or assist labor organizations
because they are members and joint owners of the cooperative. Pursuant to an order by the
med-arbiter, an certification election was conducted which was limited to 37 employees who
were found to be eligible to cast their vote. In the actual election, however, 89 “valid” votes were
casted where BELU garnered 49 of these votes. BLR director affirmed and certified BELU as
the sole and exclusive bargaining agent of all rank and file employees of BENECO.

BENECO filed the present petition alleging that the BLR director committed grave abuse of
discretion in affirming and certifying BELU because the election is null and void. BENECO
alleged that some of the member-employees who are ineligible to participate in the election also
casted their votes.

Is the election null and void due to the participation of members of the cooperative who are not
eligible to vote? YES

The right to collective bargaining is not available to an employee of a cooperative who at the
same time is a member and co-owner thereof. BELU contended that the members of the
cooperative do not actually participate in the actual management of the cooperative. Thus,
prohibiting these members to join the union is a deprivation of their right to self-organization.
The contention is untenable. The fact that the members-employees do not participate in actual
management of the cooperative does not make them eligible to be part of the labor organization
for the purpose of collective bargaining. As they are also co-owners of the cooperative, they
cannot invoke the right to collective bargaining for certainly an owner cannot bargain with
himself or his co-owners. It is the fact of ownership of cooperative, and not involvement in the
management thereof which disqualifies a member from joining any labor organization within the
cooperative.

The election was  null and void. The Regional Office No. 1 of San Fernando, La Union is hereby
directed to immediately conduct new certification election proceedings among the rank and file
employees of the petitioner who are not members of the cooperative.