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United Pepsi

The petitioner, a union of supervisory employees, filed a petition for a certification election on behalf of route managers at Pepsi-Cola Products Philippines, Inc. However, the petition was denied on the grounds that route managers are managerial employees who are ineligible to join unions under Article 245 of the Labor Code. The petitioner challenged this, arguing Article 245 violates the constitutional right to form unions. The Supreme Court ruled that Article 245 does not violate the constitution. While the constitution guarantees the right to form unions, this right is subject to lawful restrictions. Article 245 rationally prohibits managerial employees from joining unions due to conflicts of interest that could arise or risks of company domination of unions.

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Dennis Soloren
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115 views1 page

United Pepsi

The petitioner, a union of supervisory employees, filed a petition for a certification election on behalf of route managers at Pepsi-Cola Products Philippines, Inc. However, the petition was denied on the grounds that route managers are managerial employees who are ineligible to join unions under Article 245 of the Labor Code. The petitioner challenged this, arguing Article 245 violates the constitutional right to form unions. The Supreme Court ruled that Article 245 does not violate the constitution. While the constitution guarantees the right to form unions, this right is subject to lawful restrictions. Article 245 rationally prohibits managerial employees from joining unions due to conflicts of interest that could arise or risks of company domination of unions.

Uploaded by

Dennis Soloren
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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UNITED PEPSI-COLA SUPERVISORY UNION (UPSU),vs.HON. BIENVENIDO E. LAGUESMA FACTS: Petitioner is a union of supervisory employees.

It appears that on March 20, 1995 the union filed a petition for certification election on behalf of the route managers at Pepsi-Cola Products Philippines, Inc. However, its petition was denied by the med-arbiter and, on appeal, by the Secretary of Labor and Employment, on the ground that the route managers are managerial employees and, therefore, ineligible for union membership under the first sentence of Art. 245 of the Labor Code, which provides: 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. Supervisory employees shall not be eligible for membership in a labor organization of the rank and- file employees but may join, assist or form separate labor organizations of their own. Petitioner filed a motion for reconsideration, pressing for resolution its contention that the first sentence of Art. 245 of the Labor Code, so far as it declares managerial employees to be ineligible to form, assist or join unions, contravenes Art. III, 8 of the Constitution which provides: The right of the people, including those employed in the public and private sectors, to form unions, associations, or societies for purposes not contrary to law shall not be abridged. ISSUES: Whether or not Art. 245, insofar as it prohibits managerial employees from forming, joining or assisting labor unions, violates Art. III, 8 of the Constitution. RULING: NO. The real intent of Art. III, 8 is evident in Lerums proposal. The Commission intended the absolute right to organize of government workers, supervisory employees, and security guards to be constitutionally guaranteed. By implication, no similar absolute constitutional right to organize for labor purposes should be deemed to have been granted to top-level and middle managers. Nor is the guarantee of organizational right in Art. III, 8 infringed by a ban against managerial employees forming a union. The right guaranteed in Art. III, 8 is subject to the condition that its exercise should be for purposes "not contrary to law." In the case of Art. 245, there is a rational basis for prohibiting managerial employees from forming or joining labor organizations In Bulletin Publishing Co., Inc. v. Hon. Augusto Sanchez, this Court elaborated on this rationale, thus: The rationale for this inhibition has been stated to be, because if these managerial employees would belong to or be affiliated with a Union, the latter might not be assured of their loyalty to the Union in view of evident conflict of interests. The Union can also become company-dominated with the presence of managerial employees in Union membership.

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