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Philippine Skylanders Vs NLRC

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Philippine Skylanders vs NLRC

GR 127374

Facts:

In November 1993 the Philippine Skylanders Employees Association (PSEA), a local labor union affiliated
with the Philippine Association of Free Labor Unions (PAFLU), won in the certification election
conducted among the rank and file employees of Philippine Skylanders, Inc. (PSI). Its rival union,
Philippine Skylanders Employees Association-WATU (PSEA-WATU) immediately protested the result of
the election before the Secretary of Labor.

Several months later, PSEA sent PAFLU a notice of disaffiliation.

PSEA subsequently affiliated itself with the National Congress of Workers (NCW), changed its name to
Philippine Skylanders Employees Association – National Congress of Workers (PSEA-NCW), and to
maintain continuity within the organization, allowed the former officers of PSEA-PAFLU to continue
occupying their positions as elected officers in the newly-formed PSEA-NCW.

On 17 March 1994 PSEA-NCW entered into a collective bargaining agreement with PSI which was
immediately registered with the Department of Labor and Employment.

Meanwhile, apparently oblivious to PSEA’s shift of allegiance, PAFLU Secretary General Serafin Ayroso
wrote Mariles C. Romulo requesting a copy of PSI’s audited financial statement. On 30 July 1994 PSI
through its personnel manager Francisco Dakila denied the request citing as reason PSEA’s disaffiliation
from PAFLU and its subsequent affiliation with NCW.

Issue: WON PSEA’s disaffiliation is legitimate.

Held:

At the outset, let it be noted that the issue of disaffiliation is an inter-union conflict the jurisdiction of
which properly lies with the Bureau of Labor Relations (BLR) and not with the Labor Arbiter.

We upheld the right of local unions to separate from their mother federation on the ground that as
separate and voluntary associations, local unions do not owe their creation and existence to the national
federation to which they are affiliated but, instead, to the will of their members. Yet the local unions
remain the basic units of association, free to serve their own interests subject to the restraints imposed
by the constitution and by-laws of the national federation, and free also to renounce the affiliation upon
the terms laid down in the agreement which brought such affiliation into existence.

There is nothing shown in the records nor is it claimed by PAFLU that the local union was expressly
forbidden to disaffiliate from the federation nor were there any conditions imposed for a valid
breakaway. As such, the pendency of an election protest involving both the mother federation and the
local union did not constitute a bar to a valid disaffiliation.

It was entirely reasonable then for PSI to enter into a collective bargaining agreement with PSEA-NCW.
As PSEA had validly severed itself from PAFLU, there would be no restrictions which could validly hinder
it from subsequently affiliating with NCW and entering into a collective bargaining agreement in behalf
of its members.
Policy considerations dictate that in weighing the claims of a local union as against those of a national
federation, those of the former must be preferred. Parenthetically though, the desires of the mother
federation to protect its locals are not altogether to be shunned. It will however be to err greatly against
the Constitution if the desires of the federation would be favored over those of its members. That, at
any rate, is the policy of the law. For if it were otherwise, instead of protection, there would be
disregard and neglect of the lowly workingmen.

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