Professional Documents
Culture Documents
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* SECOND DIVISION.
614
Same; Same; Same; As Article 246 (now 252) of the Labor Code
provides, the right to self-organization includes the right to form, join or
assist labor organizations for the purpose of collective bargaining through
representatives of their own choosing and to engage in lawful concerted
activities for the same purpose for their mutual aid and protection.—As
Article 246 (now 252) of the Labor Code provides, the right to self-
organization includes the right to form, join or assist labor organizations for
the purpose of collective bargaining through representatives of their own
choosing and to engage in lawful concerted activities for the same purpose
for their mutual aid and protection. This is in line with the policy of the
State to foster the free and voluntary organization of a strong and united
labor movement as well as to make sure that workers participate in policy
and decision-making processes affecting their rights, duties and welfare.
The right to form a union or association or to self-organization comprehends
two notions, to wit: (a) the liberty or freedom, that is, the absence of
restraint which guarantees that the employee may act for himself without
being prevented by law; and (b) the power, by virtue of which an employee
may, as he pleases, join or refrain from joining an association.
Same; Same; Same; In view of the revered right of every worker to self-
organization, the law expressly allows and even encourages the
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organization yet fall short of constituting a labor union. While every labor
union is a labor organization, not every labor organization is a labor union.
The difference is one of organization, composition and operation.
Same; Same; Same; It is incorrect to say that it is the device and no
other, which secures industrial democracy.—Collective bargaining is just
one of the forms of employee participation. Despite so much interest in and
the promotion of collective bargaining, it is incorrect to say that it is the
device and no other, which secures industrial democracy. It is equally
misleading to say that collective bargaining is the end-goal of employee
representation. Rather, the real aim is employee participation in whatever
form it may appear, bargaining or no bargaining, union or no union. Any
labor organization which may or may not be a union may deal with the
employer. This explains why a workers’ association or organization does not
always have to be a labor union and why employer-employee collective
interactions are not always collective bargaining.
616
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617
MENDOZA, J.:
The right to self-organization is not limited to unionism. Workers
may also form or join an association for mutual aid and protection
and for other legitimate purposes.
This is a petition for review on certiorari seeking to reverse and
set aside the July 4, 2013 Decision1 and the January 28, 2014
Resolution2 of the Court of Appeals (CA) in C.A.-G.R. S.P. No.
123397, which reversed the November 28, 2011 Resolution3 of the
Bureau of Labor Relations (BLR) and reinstated the April 20, 2010
Decision4 of the Department of Labor and Employment (DOLE)
Regional Director, cancelling the registration of Samahan ng
Manggagawa sa Hanjin Shipyard (Samahan) as a worker’s
association under Article 243 (now Article 249) of the Labor Code.
The Facts
On February 16, 2010, Samahan, through its authorized
representative, Alfie F. Alipio, filed an application for registration5 of
its name “Samahan ng Mga Manggagawa sa Hanjin Shipyard” with
the DOLE. Attached to the application were the list of names of the
association’s officers and members, signatures of the attendees of the
February 7, 2010
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2 Id., at p. 32.
3 CA Rollo, pp. 118-123.
4 Id., at pp. 86-91.
5 Id., at p. 31.
618
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6 Id., at p. 61.
7 Id., at pp. 62-68.
8 Id., at pp. 69-75.
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The same claim was made by Samahan in its motion to dismiss,
but it failed to adduce evidence that the remaining 63 members were
also employees of Hanjin. Its admission bolstered Hanjin’s claim
that Samahan committed misrepresentation in its application for
registration as it made an express representation that all of its
members were employees of the former. Having a definite employer,
these 57 members should have formed a labor union for collective
bargaining.11 The dispositive portion of the decision of the Dole
Regional Director, reads:
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9 Id., at p. 87.
10 Id., at p. 53.
11 Id., at pp. 86-91.
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The Ruling of the Bureau
of Labor Relations
Aggrieved, Samahan filed an appeal13 before the BLR, arguing
that Hanjin had no right to petition for the cancellation of its
registration. Samahan pointed out that the words “Hanjin Shipyard,”
as used in its application for registration, referred to a workplace and
not as employer or company. It explained that when a shipyard was
put up in Subic, Zambales, it became known as Hanjin Shipyard.
Further, the remaining 63 members signed the Sama-Samang
Pagpapatunay which stated that they were either working or had
worked at Hanjin. Thus, the alleged misrepresentation committed by
Samahan had no leg to stand on.14
In its Comment to the Appeal,15 Hanjin averred that it was a
party-in-interest. It reiterated that Samahan committed
misrepresentation in its application for registration before DOLE
Pampanga. While Samahan insisted that the remaining 63 members
were either working, or had at least worked in Hanjin, only 10
attested to such fact, thus, leaving its 53 members without any
workplace to claim.
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12 Id., at p. 91.
13 Id., at pp. 92-100.
14 Id., at p. 97.
15 Id., at pp. 101-114.
621
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16 Id., at p. 121.
17 Id., at p. 122.
18 Id., at p. 121.
19 Id.
20 Id., at p. 123.
21 Id.
622
22
On October 14, 2010, Hanjin filed its motion for reconsideration.
In its Resolution,23 dated November 28, 2011, the BLR affirmed
its September 6, 2010 Decision, but directed Samahan to remove the
words “Hanjin Shipyard” from its name. The BLR explained that the
Labor Code had no provision on the use of trade or business name in
the naming of a worker’s association, such matters being governed
by the Corporation Code. According to the BLR, the most equitable
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Unsatisfied, Samahan filed a petition for certiorari25 under Rule
65 before the CA, docketed as C.A.-G.R. S.P. No. 123397.
In its March 21, 2012 Resolution,26 the CA dismissed the petition
because of Samahan’s failure to file a motion for reconsideration of
the assailed November 28, 2011 Resolution.
On April 17, 2012, Samahan filed its motion for reconsideration27
and on July 18, 2012, Hanjin filed its comment28 to oppose the same.
On October 22, 2012, the CA issued a resolution granting Samahan’s
motion for reconsideration and
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36
the association were ambulant, intermittent or itinerant workers.
At any rate, the CA was of the view that dropping the words
“Hanjin Shipyard” from the association name would not prejudice or
impair its right to self-organization because it could adopt other
appropriate names. The dispositive portion reads:
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36 Id., at p. 278.
37 Rollo, pp. 29-30.
38 Id., at p. 12.
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39 Id., at p. 15.
40 Comment, id., at pp. 50-73.
41 Reply, id., at pp. 96-102.
626
Section 3. The State shall afford full protection to labor, local and
overseas, organized and unorganized, and promote full employment and
equality of employment opportunities for all. It shall guarantee the rights
of all workers to self-organization, collective bargaining and negotiations,
and peaceful concerted activities, including the right to strike in accordance
with law. x x x
[Emphasis supplied]
And Section 8, Article III of the 1987 Constitution also states:
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[Emphasis supplied]
As Article 246 (now 252) of the Labor Code provides, the right
to self-organization includes the right to form, join or
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628
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vision in the Labor Code that states that employees with definite
employers may form, join or assist unions only.
The Court cannot subscribe either to Hanjin’s position that
Samahan’s members cannot form the association because they are
not covered by the second sentence of Article 243 (now 249), to wit:
form, join, or assist labor organizations of their own choosing for purposes
of collective bargaining. Ambulant, intermittent and itinerant workers,
self-employed people, rural workers and those without any definite
employers may form labor organizations for their mutual aid and
protection. (As amended by Batas Pambansa Bilang 70, May 1, 1980)
[Emphasis supplied]
Further, Article 243 should be read together with Rule 2 of
Department Order (D.O.) No. 40-03, Series of 2003, which
provides:
RULE II
COVERAGE OF THE RIGHT TO SELF-ORGANIZATION
Section 1. Policy.—It is the policy of the State to promote the free and
responsible exercise of the right to self-organization through the
establishment of a simplified mechanism for the speedy registration of labor
unions and workers associations, determination of representation status and
resolution of inter/intra-union and other related labor relations disputes.
Only legitimate or registered labor unions shall have the right to represent
their members for collective bargaining and other pur-
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Clearly, there is nothing in the foregoing implementing rules
which provides that workers, with definite employers, cannot form
or join a workers’ association for mutual aid and
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634
Based on the foregoing, the Court concludes that
misrepresentation, to be a ground for the cancellation of the
certificate of registration, must be done maliciously and deliberately.
Further, the mistakes appearing in the application or at-
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The policy underlying the prohibition in Section 18 against the
registration of a corporate name which is “identical or deceptively or
confusingly similar” to that of any existing corporation or which is
“patently deceptive” or “patently confusing” or “contrary to existing
laws,” is the avoidance of fraud upon the public which would have
occasion to deal with the entity concerned, the evasion of legal
obligations and duties, and the reduction of difficulties of
administration and supervision over corporations.60
For the same reason, it would be misleading for the members of
Samahan to use “Hanjin Shipyard” in its name as it
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60 Lyceum of the Philippines, Inc. v. Court of Appeals, G.R. No. 101897, March
5, 1993, 219 SCRA 610, 615.
637
could give the wrong impression that all of its members are
employed by Hanjin.
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The change of name of a labor organization shall not affect its legal
personality. All the rights and obligations of a labor organization under its
old name shall continue to be exercised by the labor organization under its
new name.
Thus, in the directive of the BLR removing the words “Hanjin
Shipyard,” no abridgement of Samahan’s right to self-organization
was committed.
WHEREFORE, the petition is PARTIALLY GRANTED. The
July 4, 2013 Decision and the January 28, 2014 Resolution of the
Court of Appeals are hereby REVERSED and SET ASIDE. The
September 6, 2010 Resolution of the Bureau of Labor Relations, as
modified by its November 28, 2011 Resolution, is REINSTATED.
SO ORDERED.
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** Per Special Order No. 2222 dated September 29, 2015.
*** Designated acting member per Special Order No. 2223 dated September 29,
2015.
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