TAGAYTAY HIGHLANDS INTERNATIONAL GOLF CLUB
INCORPORATED v TAGAYTAY HIGHLANDS EMPLOYEES
UNION-PTGWO
G.R. No. 142000 | January 22, 2003
Carpio-Morales, J. | Protacio
Summary
Respondent labor organization filed with the DOLE Mediation-
Arbitration unit a petition for certification election, which
petitioner company opposed to – one of the grounds being that
some of the members in the list included supervisors. THIGCI
submitted a list of signatories whose membership in the union was
being questioned as disqualified. The Supreme Court upheld the
certification granted to the labor organization, with a ruling that
the certification of registration cannot be subject to collateral
attack. As for the alleged supervisory employees, it wasn’t enough
that the company just place the job titles, because a description of
what they actually do is important to show that they are truly
supervisory, with effective recommendatory powers.
Doctrine
Nothing was mentioned about the alleged supervisors’ respective
duties, powers, and prerogatives that would show that they can
effectively recommend managerial actions. Citing Pepsi-Cola
Products Philippines, Inc. v Sec. of Labor (another case in the
syllabus), “The mere fact that an employee is designated manager
doesn’t necessarily make him one.”
FACTS
- THEU and PTGWO (respondents), a legitimate labor
organization said to represent majority of the rank-and-file
employees of THIGCI (petitioner) filed a petition for
certification before the DOLE Mediation-Arbitration Unit
(October 16, 1997)
o THIGCI opposed this petition on the following grounds
that the list of union members was defective and fatally
flawed
 Included names and signatures of supervisors,
resigned, terminated and AWOL employees
 Also included employees of The Country Club,
Inc, a corporation distinct and separate from
THIGCI
 Alleged that some of the signatories were
secured through fraudulent and deceitful means,
and that they actually denied and withdrew
membership
- THIGCI submitted a list of names of the only 71 actual rank-
and-file employees
o Incorporated a tabulation showing the number of
signatories to the petition whose membership was
being questioned
 “13 Supervisors of THIGCI (reason for
disqualification)”
- THEU, in its reply, asserted that it had complied with all the
requirements for valid affiliation
o It was duly granted a Certification of Affiliation by DOLE
(October 10, 1997)
o Sec. 5, Rule V of DO No. 9 provides that legitimacy of its
registration cannot be subject to collateral attack
- DOLE Med-Artiber ordered the holding of certification election
among the rank-and-file employees
o Held that THIGCI’s allegation on disqualification of
members should be properly raised in the exclusion-
inclusion proceedings at the pre-election conference
o As for allegation of fraud and deceit, it should be
coursed through an independent petition for
cancellation of union registration
o THIGCI failed to submit the job descriptions of the
questioned employees to bolster its claim that they
are disqualified
- THIGCI appealed to DOLE Secretary (THEU seeks to represent
two separate bargaining units – supervisory and rank-and-file)
o Dismissed the petition for certification election on the
ground of absence of community or mutuality of
interest
 o However, upon MR of THEU, DOLE Undersecretary set
aside the previous resolution
 Being a local chapter, the 20% membership
requirement is not necessary to acquire
legitimate status
 Names of alleged disqualified supervisory
employees should simply be removed from the
roster
o Records remanded to Office of the Med-Arbiter for
conduct of certification elections
- THIGCI filed a petition for certiorari which was referred to the
Court of Appeals
o CA denied petition and affirmed DOLE Resolution
- Hence, this petition for certiorari under Rule 45
o Petitioner argues that jurisprudence provides that “a
labor organization composed of both rank-and-file and
supervisory employees is no labor organization at
all.”
 “It is necessary to the granting of an order
allowing a certification election, to inquire into
the composition of any labor organization
whenever the status of the labor organization is
challenged”
o That without resolving the status of THEU, DOLE
Undersecretary conveniently deferred the resolution on
the serious infirmity in the membership of THEU
ISSUE
W/N the petition for certification election of respondent can
continue despite the allegations of petitioner. – YES
RATIO (most relevant to our topic is the part on lack of
mutuality of interest)
- Statutory authority for exclusion of supervisory employees in a
rank-and-file union is Art. 255 [245]
o “xxx Supervisory employees shall not be eligible for
membership in the collective bargaining unit of the rank-
and-file employees but may join, assist or form separate
collective bargaining units and/or legitimate labor
organizations of their own. xxx”
- While the provision expressly prohibits supervisory employees
from joining a rank-and-file union, it does not provide what
would be the effect if a rank-and-file union counts
supervisory employees among its members, or vice versa
- Petition fails.
- After a certification of registration is issued to a union, its
legal personality cannot be subject to a collateral attack. It
may be questioned
- Sec. 5 of Rule V, Book IV of the Implementing Rules of the
Labor Code provides for the effect of registration
o “The labor organization/workers’ association shall be
deemed registered and vested with legal personality on
the date of issuance of its certificate of registration. Such
legal personality cannot thereafter be subject to
collateral attack, but may be questioned only in an
independent petition for cancellation in accordance with
these Rules.”
- The grounds for cancellation of union registration are provided
for under Art. 247 [239]
o The inclusion in a union of disqualified employees is
not among the grounds for cancellation, unless such
inclusion is due to misrepresentation, false statement or
fraud under the circumstances enumerated in Sections
(a) and (c)
- THEU, having been validly issued a certificate of registration,
should be considered to have already acquired juridical
personality, which may not be assailed collaterally
- For the allegation of signatures acquired through fraud, false
statement and misrepresentation
o Proper procedure is a petition for cancellation of
certificate of registration, not to intervene in a petition
for certification election
- For the allegation of withdrawal of union members from
participating in certification election
o Best forum is the certification election itself – so that
they can freely express their choice in a secret ballot
- For the allegation on the lack of mutuality of interest
o THIGCI failed to present substantial evidence that the
assailed employees are actually occupying supervisory
positions
o While they submitted a list of employees with their
corresponding job titles and ranks, there is nothing
mentioned about the supervisors’ respective duties,
powers, and prerogatives that would show that they
can effectively recommend managerial actions
which require the use of independent judgment
o Pepsi-Cola Products Philippines Inc v Secretary of Labor
 The mere fact that an employee is designated
manager does not necessarily make him one.
Otherwise, there would be an absurd situation
where one can be given the title just to be
deprived of the right to be a member of the union
 What is essential is the nature of the
employee’s function and not the
nomenclature or title given

RULING
Petition denied.