G.R. No. 117211 March 1, 1995
PROTECTION TECHNOLOGY, petitioner, vs. HONORABLE SECRETARY, DEPARTMENT OF LABOR AND EMPLOYMENT, MED-ARBITER BRIGIDA C. FADRIGON and SAMAHAN NG MANGGAGAWA SA PROTECTION-ALLIANCE OF NATIONALIST AND GENUINE LABOR ORGANIZATION (SMP-ANGLO), respondents.

FACTS

On January 12, 1994, private respondent Samahan ng Manggagawa sa Protection — Alliance of Nationalist and Genuine Labor Organizations (“Union”), a newly organized union affiliated with a federation, filed a Petition for direct certification or for certification election with the DOLE. Petitioner Protection Technology Inc. (“Company”) opposed the petition, contending the Union was not a legitimate labor organization because it failed to submit its books of account (journals, ledgers, and other accounting books) to the Bureau of Labor Relations (“BLR”) upon registration, as required under the ruling in Progressive Development Corporation v. Secretary, Department of Labor and Employment. The Med-Arbiter dismissed the Union’s petition. The Union appealed to the DOLE Secretary. DOLE Undersecretary Bienvenido Laguesma set aside the Med-Arbiter’s Order, holding the requirement to submit books of account applies only to labor organizations existing for at least a year, and ordered a certification election. The Union had submitted a “Statement of Income and Expenses for the month ended September 28, 1993,” containing a single entry “Cash on hand — P590.00,” certified by its secretary and attested by its president. The Company’s motion for reconsideration was denied. The Company filed a Petition for Certiorari with the Supreme Court. Despite a Temporary Restraining Order (TRO) issued by the Court on November 9, 1994, a certification election was conducted on November 10, 1994, wherein the Union obtained 53 out of 58 valid votes. The Union thereafter argued the Petition was moot and academic.

ISSUE

Whether books of account, consisting of ledgers, journals, and other accounting books, form part of the mandatory documentation requirements for registration of a newly organized union affiliated with a federation as a legitimate labor organization.

RULING

Yes. The Supreme Court, citing Progressive Development Corporation v. Secretary, DOLE, ruled that the submission of books of account, certified under oath by the secretary or treasurer and attested to by the president, is a mandatory requirement for a local or chapter of a federation to acquire the status of a legitimate labor organization. The Court distinguished books of account from financial statements, holding that books of account consist of journals, ledgers, and other accounting books recording day-to-day transactions, while financial statements merely summarize such transactions. The “Statement of Income and Expenses” submitted by the Union was a financial statement, not the required books of account. Non-submission of such books is a legitimate ground for an employer to oppose a certification election petition. However, since a certification election had already been conducted and the Union won, the Petition for Certiorari was dismissed for being moot and academic. The Court lifted the TRO but enjoined the Union from exercising the rights and privileges of a legitimate labor organization and collective bargaining representative until it submits the required books of account, duly certified and attested, to the BLR.