G.R. No. L-62386, L-70880, L-74560. November 9, 1988.
BATANGAS-I ELECTRIC COOPERATIVE LABOR UNION, petitioner, vs. ROMEO A. YOUNG, OFFICER IN CHARGE, BUREAU OF LABOR RELATIONS, AND BATANGAS-I ELECTRIC COOPERATIVE, INC., respondents. BULACAN II ELECTRIC COOPERATIVE, INC., petitioner, vs. HON. ELISEO A. PEÑAFLOR, THE CHIEF MED-ARBITER OF THE REGIONAL ARBITRATION OFFICE, BRANCH NO. III, SAN FERNANDO, PAMPANGA, HON. CRESENCIANO B. TRAJANO, THE DIRECTOR, BUREAU OF LABOR RELATIONS, MINISTRY OF LABOR AND EMPLOYMENT, MANILA, AND FEDERATION OF FREE WORKERS (BECO II COOP., INC., CHAPTER), respondents. ALBAY ELECTRIC COOPERATIVE I, petitioner, vs. CRESENCIANO B. TRAJANO, DIRECTOR, BUREAU OF LABOR RELATIONS AND FFW ALECO I CHAPTER, respondents.

FACTS

These consolidated petitions involve the common issue of whether employees of electric cooperatives, who are simultaneously members or co-owners of the cooperative, can validly form or join a labor union for collective bargaining. In G.R. No. 62386, the Batangas-I Electric Cooperative Labor Union filed a petition for certification election. The Bureau of Labor Relations (BLR) denied it, ruling that employee-members, as co-owners, cannot bargain with themselves, negating an employer-employee relationship essential for collective bargaining. In G.R. No. 70880, Bulacan II Electric Cooperative contested a BLR order for a certification election, similarly arguing its employee-members are co-owners. In G.R. No. 74560, Albay Electric Cooperative I challenged a BLR order for an election, asserting that many petition signatories were disqualified member-employees.

ISSUE

The central issue is whether employees of an electric cooperative who are also members or co-owners thereof possess the right to self-organization and collective bargaining under the Labor Code.

RULING

The Supreme Court ruled that employee-members of an electric cooperative are barred from forming or joining a labor union for collective bargaining purposes. The legal logic rests on the absence of a genuine employer-employee relationship, which is a fundamental prerequisite for collective bargaining under the Labor Code. A cooperative is a non-profit entity owned and controlled by its members. When employees are also members, they are considered co-owners of the enterprise. Consequently, they cannot logically bargain with themselves; the necessary dichotomy between management and labor does not exist. The right to self-organization under Article 243 of the Labor Code presupposes an employment relationship. However, the Court clarified that this disqualification applies only to employees who are cooperative members. Rank-and-file employees who are not members retain their full right to organize. Applying this distinction, the Court dismissed the petition in G.R. No. 62386 (Batangas), affirming the BLR’s denial of the election, as the petitioning union consisted of member-employees. In G.R. No. 70880 (Bulacan), the Court dismissed the cooperative’s petition and affirmed the BLR’s order for an election because, despite some signatories being members, the 30% subscription requirement was still met by the non-member employees. In G.R. No. 74560 (Albay), the Court granted the cooperative’s petition and reversed the BLR, as the petition for certification election was supported primarily by disqualified member-employees and failed to meet the required percentage of support