G.R. No. L-77818 August 3, 1988
NATIONAL ASSOCIATION OF FREE TRADE UNIONS (NAFLU-TUCP), petitioner, vs. BUREAU OF LABOR RELATIONS (BLR) and SOUTHERN PHILIPPINES FEDERATION OF LABOR (SPFL), respondents, PACIFIC CEMENT COMPANY, INC. (PACEMCO), employer.

FACTS

On June 6, 1986, the National Association of Free Trade Unions (NAFLU-TUCP) obtained a direct certification as the exclusive bargaining agent for the workers of Pacific Cement Co. (PACEMCO) from the med-arbiter, based on its claim that no other union was seeking representation. However, within the same freedom period, on June 20, 1986, the Southern Philippines Federation of Labor (SPFL) filed a petition for a certification election, supported by signatures of 168 workers representing over 60% of the rank-and-file employees. NAFLU opposed this petition, invoking its prior direct certification.
The med-arbiter reversed his earlier order and authorized a certification election on August 11, 1986. The Bureau of Labor Relations sustained this order on appeal, emphasizing the workers’ constitutional right to choose their bargaining representative. NAFLU’s motion for reconsideration was denied, prompting it to file a petition for certiorari with the Supreme Court, arguing grave abuse of discretion.

ISSUE

Whether a direct certification of a labor union preempts and precludes the holding of a certification election subsequently petitioned for by another union within the freedom period.

RULING

The Supreme Court dismissed the petition, ruling that a direct certification does not preclude a certification election when a reasonable doubt exists regarding the true majority choice of the workers. The Court examined the original Article 257 of the Labor Code, which allowed direct certification but mandated a certification election if there was “any reasonable doubt” as to the employees’ chosen representative. The circumstances generated such reasonable doubt. The subsequent petition by SPFL, supported by a majority of workers—including some who had initially supported NAFLU—and allegations that the initial manifestation for NAFLU was obtained through a suspicious grant of a food subsidy, created sufficient uncertainty to justify the med-arbiter’s reversal and the order for an election.
The Court further noted that Executive Order No. 111, effective March 4, 1987, had amended the Labor Code, discontinuing direct certification as a method and affirming the certification election as the primary mechanism. Moreover, the case was rendered moot and academic. The ordered certification election was held on March 9, 1987, resulting in SPFL’s victory with 201 of 212 votes. SPFL was subsequently certified and had already negotiated and concluded a collective bargaining agreement with PACEMCO. The Court stressed that the certification election is the most democratic method for workers to freely select their bargaining agent, and a union confident of worker support should not resist it.