G.R. No. 122226 , March 25, 1998.
United Pepsi-Cola Supervisory Union (UPSU), petitioner, vs. Hon. Bienvenido E. Laguesma and Pepsi-Cola Products, Philippines, Inc., respondents.

FACTS

The case involves a petition concerning the eligibility of “route managers” of Pepsi-Cola Products Philippines, Inc. to join a labor union. The petitioner is the United Pepsi-Cola Supervisory Union (UPSU), a union of supervisory employees. The Med-Arbiter and public respondent Bienvenido E. Laguesma denied the petition for direct certification or for a certification election. The central legal issue revolves around the constitutionality of Article 245 of the Labor Code, which states that managerial employees are not eligible to join, assist, or form any labor organization.

ISSUE

The primary issue is whether Article 245 of the Labor Code, which prohibits managerial employees from joining, assisting, or forming labor organizations, is constitutional in light of Section 8, Article III of the 1987 Constitution .

RULING

Justice Davide, in his concurring and dissenting opinion, concurs with the majority that the route managers are managerial employees. However, he dissents regarding the constitutionality of Article 245 of the Labor Code. He argues that Article 245 is unconstitutional as it abridges Section 8, Article III of the Constitution . This constitutional provision guarantees 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. The intent of the Constitutional Commission, as reflected in the records, was to abrogate the law prohibiting managerial employees from joining, assisting, or forming unions. Therefore, the first sentence of Article 245 of the Labor Code must be struck down as unconstitutional. Nonetheless, due to potential conflicts of interest, managerial employees may only join, assist, or form unions of their own rank and cannot join unions of supervisory or rank-and-file employees. Since UPSU is a union of supervisory employees, the route managers, as managerial employees, cannot join or assist it. Thus, the denial of the petition for direct certification or certification election was correct. Justice Davide votes to grant the petition in part, setting aside the portion of the resolution that holds managerial employees ineligible to join any labor organization as unconstitutional, while affirming the denial of the petition for certification election.