Cirtek Employees V. Cirtek Electronics
Cirtek Employees V. Cirtek Electronics
Cirtek Employees V. Cirtek Electronics
CIRTEK ELECTRONICS
G.R NO. 190515, June 6, 2011
FACTS:
Parties entered into a Memorandum of Agreement. Petitioner assailed the legality of the
MOA. Respondent-movant maintains that the Secretary of Labor cannot insist on a ruling
beyond the compromise agreement entered into by the parties; and that, as early as
February 5, 2010, petitioner Union had already filed with the Department of Labor and
Employment (DOLE) a resolution of disaffiliation from the Federation of Free Workers
resulting in the latter’s lack of personality to represent the workers in the present case.
Issues:
1. WON Secretary of Labor is empowered to give arbitral awards in the exercise of his
authority to assume jurisdiction over labor disputes.
2. WON disaffiliation from the Federation of Free Workers resulted in the Union’s
lack of personality.
Held:
1. While an arbitral award cannot per se be categorized as an agreement voluntarily
entered into by the parties because it requires the interference and imposing
power of the State thru the Secretary of Labor when he assumes jurisdiction, the
award can be considered as an approximation of a collective bargaining agreement
which would otherwise have been entered into by the parties. Hence, it has the
force and effect of a valid contract obligation between the parties.
2. A local union may disaffiliate at any time from its mother federation, absent any
showing that the same is prohibited under its constitution or rule. Such, however,
does not result in it losing its legal personality altogether. Verily, Anglo-KMU v.
Samahan Ng Mga Manggagawang Nagkakaisa Sa Manila Bay Spinning Mills At J.P.
Coats enlightens: A local labor union is a separate and distinct unit primarily
designed to secure and maintain an equality of bargaining power between the
employer and their employee-members. A local union does not owe its existence
to the federation with which it is affiliated. It is a separate and distinct voluntary
association owing its creation to the will of its members. The mere act of affiliation
does not divest the local union of its own personality, neither does it give the
mother federation the license to act independently of the local union. It only gives
rise to a contract of agency where the former acts in representation of the latter.