SMCEU-PTGWO vs. SMPPEU-PDMP

A trade union center cannot directly create a local or chapter through chartering; thus, a local purportedly created by it cannot avail of the relaxed registration requirements for chartered locals and must comply with the 20% membership requirement prescribed for independent unions.

SMCEU-PTGWO was the incumbent bargaining agent for the regular monthly-paid rank-and-file employees of three San Miguel Corporation (SMC) divisions. PDMP, a registered trade union center, issued Charter Certificate No. 112 to SMPPEU-PDMP, which subsequently filed petitions for certification election. SMCEU-PTGWO sought the cancellation of SMPPEU-PDMP’s registration, alleging fraud and non-compliance with the 20% membership requirement under Article 234(c) of the Labor Code, and asserting that PDMP, as a trade union center, could not directly create a local or chapter.

• Incumbent Bargaining Agent: SMCEU-PTGWO represented the regular monthly-paid rank-and-file employees of the San Miguel Corporate Staff Unit (SMCSU), San Miguel Brewing Philippines (SMBP), and San Miguel Packaging Products (SMPP) for 20 years.
• Creation of Respondent: PDMP, a registered trade union center, issued Charter Certificate No. 112 to SMPPEU-PDMP on June 15, 1999. Respondent submitted the requisite documents to the BLR and was issued a Certificate of Creation of Local or Chapter on July 6, 1999.
• Certification Election Petitions: Respondent filed three separate petitions for certification election to represent SMPP, SMCSU, and SMBP, which were dismissed for fragmenting a single bargaining unit.
• Petition for Cancellation: Petitioner filed a petition to cancel respondent's registration, alleging fraud, falsification, and non-compliance with the 20% membership requirement under Art. 234(c) of the Labor Code, and asserting that PDMP, as a trade union center, could not directly create a local or chapter.
• Lower Court Findings: The DOLE-NCR Regional Director found no fraud but canceled the registration for failure to meet the 20% membership requirement, calculating the membership based on the entire bargaining unit across three divisions. The BLR and the Court of Appeals reversed, holding that a chartered local is exempt from the 20% requirement and that PDMP could directly charter a local.

• 20% Membership Requirement: Petitioner argued that respondent must submit names of members comprising at least 20% of the employees in the bargaining unit to acquire legal personality under Art. 234(c) of the Labor Code.
• Bargaining Unit Scope: Petitioner maintained that the 20% membership must be based on all employees across the three SMC divisions as defined in the CBA, not just the SMPP division.
• Trade Union Center Limitation: Petitioner insisted that PDMP, as a trade union center, is not a federation or national union and therefore cannot directly create a local or chapter through chartering.

• Exemption as Chartered Local: Respondent countered that as a chartered local, it is not required to submit the 20% membership requirement under Department Order No. 9.
• Capacity to Charter: Respondent argued that PDMP, although a trade union center, is a legitimate labor organization possessing the rights and privileges to act as a representative, including the capacity to directly create a local or chapter.

• Chartering by Trade Union Center: Whether a trade union center can directly create a local or chapter through chartering under the Labor Code and its Implementing Rules.
• 20% Membership Requirement: Whether a local purportedly chartered by a trade union center is exempt from the 20% membership requirement for registration as an independent union.

• Chartering by Trade Union Center: A trade union center cannot directly create a local or chapter. The Labor Code and its Implementing Rules expressly grant the power to charter locals only to a "duly registered federation or national union." Applying the principle of expressio unius est exclusio alterius, the specific enumeration of federations and national unions excludes trade union centers from the exercise of this power.
• 20% Membership Requirement: Because PDMP could not validly charter a local, SMPPEU-PDMP cannot claim the relaxed registration requirements applicable to chartered locals. It must comply with the more stringent rules for independent unions, including the 20% membership requirement under Art. 234(c) of the Labor Code, which it failed to satisfy.

• Expressio Unius Est Exclusio Alterius — The expression of one thing is the exclusion of another. When certain persons or things are specified in a law, an intention to exclude all others from its operation is inferred. Applied to hold that the express grant of chartering power to federations and national unions excludes trade union centers.
• Collateral Attack on Union Registration — The legal personality of a legitimate labor organization cannot be subject to a collateral attack; it may be questioned only in an independent petition for cancellation. PDMP's legitimacy as a labor organization could not be collaterally attacked in a proceeding challenging the local's registration.
• Registration Requirements for Chartered Locals vs. Independent Unions — A chartered local created by a duly registered federation or national union is exempt from the 20% membership requirement applicable to independent unions, as established in Progressive Development Corporation v. Secretary, DOLE.

• "If its intent were otherwise, the law could have so easily and conveniently included 'trade union centers' in identifying the labor organizations allowed to charter a chapter or local. Anything that is not included in the enumeration is excluded therefrom, and a meaning that does not appear nor is intended or reflected in the very language of the statute cannot be placed therein."
• "Therefore, since under the pertinent status and applicable implementing rules, the power granted to labor organizations to directly create a chapter or local through chartering is given to a federation or national union, then a trade union center is without authority to charter directly."

• Progressive Development Corporation v. Secretary, Department of Labor and Employment, G.R. No. 96425, 4 February 1992 — Followed. Established that when an unregistered union becomes a branch, local, or chapter, some registration requirements for independent unions (such as the 20% membership requirement) are no longer necessary.
• Pagpalain Haulers, Inc. v. Trajano, 369 Phil. 618 (1999) — Followed. Upheld the validity of Department Order No. 9, finding no inconsistency between it and the Labor Code regarding registration requirements.
• Tagaytay Highlands International Golf Club Incorporated v. Tagaytay Highlands Employees Union-PGTWO, 443 Phil. 841 (2003) — Followed. Held that once a certificate of registration is issued, a union's legal personality cannot be subject to collateral attack.

• Article 234, Labor Code — Enumerates the requirements for registration of an independent labor organization, including the 20% membership requirement. Applied to require respondent to comply with these stringent rules because it was not validly chartered.
• Article 234-A, Labor Code (RA 9481) — Provides that a "duly registered federation or national union" may directly create a local chapter. Cited to reinforce the legislative intent to exclude trade union centers from the power to charter.
• Section 1, Rule VI, Book V, Implementing Rules (D.O. No. 9) — Provides that a "duly registered federation or national union" may directly create a local/chapter. Applied to determine that PDMP, as a trade union center, was not authorized to charter a local.
• Section 5, Rule V, Book V, Implementing Rules — Provides that a labor organization's legal personality cannot be subject to collateral attack. Applied to protect PDMP's legitimacy from collateral challenge.

Ynares-Santiago, Chairperson; Austria-Martinez; Nachura; Reyes