GOLDEN FARMS, INC.

, petitioner,
vs.
HON. PURA FERRER-CALLEJA, ET AL., respondents.
G.R. No. 78755, July 19, 1989

FACTS:
The case began with a petition for election filed by the herein private
respondents, the National Federation of Labor (respondent union). Such
petition was opposed by the herein petitioners, Golden Farms Inc. (the
company), on two ground (1) that the members of the respondent union
were amongst those prohibited by the law to join (managerial employees and
confidential employees), assists or constitute a union for the purpose of
collective bargaining and (2) that there was an existing Collective Bargaining
Unit already constituted. The Med-Arbiter who had jurisdiction over the case
ruled to deny the petition for certification election but ordered the company
to negotiate for a supplemental collective bargaining agreement (CBA) on
the ground that some of the members of the respondent union although
vested with a managerial title were performing only rank and file duties
hence should be included in the CBA.
The company then manifested that
the CBA currently in effect specifically excluded certain employees from
being covered and further manifested that allowing these prohibited
employees to be part of the CBA would be detrimental to the employers
because these prohibited employees hold undue advantage over the
employers.

ISSUE:
Are managerial and confidential employees allowed to form a labor union for
the purpose of collective bargaining?

RULING:
No. The Court pointed out that these employees are disqualified by the code
in joining, assisting or constituting labor unions for the purpose of collective
bargaining because of the following grounds: (1) if managerial employees
would belong to or would be affiliated with a Union, the latter might not be
assured of their loyalty to the union in view of the evident conflict of interest
or that the union can be company dominated with the presence of
managerial employees in Union membership, and (2) confidential employees
such as accounting personnel, radio and telegraph operators, who having

access to confidential information, may become the source of undue

advantage. These confidential employees may act as spies of either party to
a collective bargaining agreement. Hence they cannot be included in the CBA
formed by the recognized Bargaining Unit of the Company. Furthermore, the
Court cited specific provisions of the existing CBA excluding the prohibited
employees from joining and being covered by the CBA.
The petition was granted. The ruling of the Med-Arbiter as affirmed by the
respondent is declared to be without force and effect.