1. Complex Electronics Employees Association vs.
NLRC
GR. No. 121315.
July 19,
1999
KAPUNAN, J.:
FACTS:
Complex Electronics Corporation was engaged in the
manufacture of electronic products. It was actually a subcontractor of
electronic products where its customers gave their job orders, sent their own
materials and consigned their equipment to it.
The rank and file workers of Complex were organized
into a union known as the Complex Electronics Employees Association
Complex received a facsimile message from Lite-On
Philippines Electronics Co., requiring it to lower its price by 10%. Complex
informed its Lite-On personnel that such request of lowering their selling
price by 10% was not feasible as they were already incurring losses at the
present prices of their products.Complex regretfully informed the employees
that it was left with no alternative but to close down the operations of the
Lite-On Line
retrenchment will not take place until after 1 month
try to prolong the work for as many people as
possible for as long as it can
retrenchment pay as provided for by law i.e.
half a month for every year of service in accordance with Article 283 of the
Labor Code of Philippines.
Complex filed a notice of closure of the Lite-On Line
with the Department of Labor and Employment (DOLE) and the retrenchment of the
ninety-seven (97) affected employees.
Union
filed a notice of strike with the National Conciliation and Mediation Board
In
the evening of April 6, 1992, the machinery, equipment and materials being used
for production at Complex were pulled-out from the company premises and
transferred to the premises of Ionics Circuit, Inc. (Ionics) at Cabuyao,
Laguna.
Fearful that the machinery, equipment and materials
would be rendered inoperative and unproductive due to the impending strike of
the workers, the customers ordered their pull-out and transfer to Ionics
Complex was compelled to cease operationsIonics
contended that it was an entity separate and distinct from Complex and had been
in existence since July 5, 1984 or eight (8) years before the labor dispute
arose at Complex. Like Complex, it was also engaged in the semi-conductor
business where the machinery, equipment and materials were consigned to them by
their customers
President of Complex was also the President of
Ionics, the latter denied having Qua as their owner since he had no recorded
subscription of P1,200,00.00 in Ionics as claimed by the Union. Ionics further
argued that the hiring of some displaced workers of Complex was an exercise of
management prerogatives.
complaint was, thereafter, filed with the Labor
Arbitration Branch of the NLRC for unfair labor practice, illegal
closure/illegal lockout, money claims for vacation leave, sick leave, unpaid
wages, 13th month pay, damages and attorney's fees. The Union alleged that the
pull-out of the machinery, equipment and materials from the company premises,
which resulted to the sudden closure of the company was in violation of Section
3 and 8, Rule XIII, Book V of the Labor Code of the Philippines and
the existing CBA
Labor Arbiter: reinstate the 531 above-listed
employees to their former position; charge of slowdown strike filed by
respondent Complex against the union is hereby dismissed for lack of merit.
NLRC: pay 531 complainants equivalent to one month
pay in lieu of notice and separation pay equivalent to one month pay for every
year of service and a fraction of six months considered as one whole year.
Issue: Whether or not there is a ULP.
Ruling. NO.
A "runaway shop" is defined as an
industrial plant moved by its owners from one location to another to escape
union labor regulations or state laws, but the term is also used to describe a
plant removed to a new location in order to discriminate against employees at
the old plant because of their union activities.
·
It is one wherein the employer moves its business to
another location or it temporarily closes its business for anti-union purposes
·
relocation motivated by anti-union animus rather
than for business reasons
·
Ionics was not set up merely for the purpose of
transferring the business of Complex. At the time the labor dispute arose at
Complex, Ionics was already existing as an independent company.
·
The Union failed to show that the primary reason for
the closure of the establishment was due to the union activities of the
employees.
·
The mere fact that one or more corporations are owned
or controlled by the same or single stockholder is not a sufficient ground for
disregarding separate corporate personalities.
No illegal lockout/illegal dismissal
·
closure, therefore, was not motivated by the union
activities of the employees, but rather by necessity since it can no longer
engage in production without the much needed materials, equipment and
machinery.
·
The determination to cease operation is a prerogative
of management that is usually not interfered with by the State as no employer
can be required to continue operating at a loss simply to maintain the workers
in employment.
·
personal liability of Lawrence Qua- absence of malice
or bad faith, a stockholder or an officer of a corporation cannot be made
personally liable for corporate liabilities.
·
We see no valid and cogent reason why petitioner
should not be likewise sanctioned for its failure to serve the mandatory
written notice. Under the attendant facts, we find the amount of P5,000.00, to
be just and reasonable.
·
2. Oceanic Air
Products Inc., vs. CIR
GR. No. L-18704. January 31, 1963
CONCEPCION, J.:
Facts:
Complainant union was organized on April 25, 1958 and registered in the
Department of labor on May 5, 1958, while respondent union was organized on May
2, 1958 and registered in the said office on June 16, 1958. On June 12, 1958,
complainant union sent by registered mail a letter to the president of
respondent company containing several demands for the improvement of the
working conditions of the employees of said company. Management did not answer
said letter of complainant union.
On July 3, 1958, after Mr. Suy, the production manager, received another
copy of the letter of demands of complainant union, Mr. Narciso Chan, the
president of respondent company dismissed Jorge de Guia, president of
complainant union; Cosme Laureano, vice-president; Domingo Nanong,
secretary-treasurer; Nemesio de Guia, board member; Bonifacio Baligasay, board
member, Leon Acebar and Salvador Gajudo, members of said union. The other
officers, Maximo Benedicto, auditor, Federico Pineda and Adelaido Zaragoza disaffiliated
from complainant union and joined respondent union.
In their answers, respondent union denied the material allegations of
the prosecutor's complaint, while respondent company also denied the material
allegations of said complaint, and averred that both Leon Acebar and Salvador
Gajudo would have been dismissed a long time ago for laziness, insubordination
and sleeping while on duty but were given all the chances to reform but
continued to do so; that respondent company admitted the dismissal by its president
Narciso Chan on July 3, 1958 of Jorge de Guia, Bonifacio Balignasay, Cosme
Laureano, Domingo Nanong, Nemesio de Guia, Salvador Gajudo and Leon Acebar
because the firm was losing, besides the fact that their services were
unsatisfactory; that two months before July 3, 1958 they were given warnings to
reform themselves and at the same time to look for other places to go as the
firm was losing and at the time of their dismissal one month separation pay was
offered to each and every one of them.
Issue:
Whether
the dismissal will tantamount to ULP
Ruling:
Lower
Court: To dismiss its employees especially the officers and members of
complainant union who are militant and dynamic after the organization of the
same is something that smacks of unfair labor practice. In labor parlance that
is union-busting. If respondent company dismissed said complainants before the
organization of complainant union, there would have been neither misgivings nor
suspicion as to its ulterior motives. But when its management dismissed said
complainants after the organization of their union and after they had sent a
letter of demands for the improvement of the working conditions of the
employees of the company, that is the legendary last straw that broke the
camel's back. In fine, respondent company is guilty of union-busting.
We
are fully in agreement with this conclusion.
3.
AHS/Philippines Employee Union vs. NLRC
GR. No. 73721. March 30, 1987
FERNAN, J.:
Facts:
Petitioner
AHS/Philippines Employees Union [FFW] was the recognized collective bargaining
agent of the rank-and-file employees of private respondent AHS/Philippines
Inc., a company engaged in the sale of hospital and laboratory equipment and
Berna and Pharmaton products. A collective bargaining agreement [CBA] was
concluded between the parties for the period commencing December 1, 1981 to
November 30, 1984.
On July 26, 1984, Petitioner union filed a
notice of strike with the Bureau of Labor Relations, listing as ground therefor
unfair labor practice consisting in: 1] diminution of benefits, 2] union
busting, 3] illegal termination and 4] harassment. 2 A second notice of strike
was thereafter filed on August 3, 1984 on substantially the same grounds and
the additional charges of refusal to bargain, violation of the CBA and
dismissal of union officers and members.
petitioner
union struck. A picket was staged at private respondent company’s premises at
Pasong Tamo in Makati.
When
the conciliation meetings conducted by the Bureau of Labor Relations proved
unavailing, private respondent company filed a petition to declare the strike
illegal. 4 After issues had been joined with petitioner union’s submission of
its position paper, hearings ensued before Labor Arbiter.
LA
rendered a decision declaring the strike staged by petitioner union illegal and
ordering the lifting of the picket established in the premises of private
respondent company. All the officers of the union who joined and were
responsible for the declaration of said strike were deemed to have lost their
employment status, while the other non-officer employees who symphathized and
joined the strike were ordered reinstated to their former or equivalent
positions without strike duration pay, or paid separation pay or the economic
package offered by the company, whichever is higher, in case reinstatement was
not possible.
Dissatisfied,
petitioners appealed the labor arbiter’s ruling to the NLRC. Dismissed
Issue:
Whether
or not the the petitioner is illegally dismissed tainted with anti-unionism
Ruling:
Concededly,
retrenchment to prevent losses is considered a just cause for terminating
employment 22 and the decision whether to resort to such move or not is a
management prerogative. 23 Basic, however, in human relations is the precept
that "every person must, in the exercise of his rights, and in the
performance of his duties, act with justice, give everyone his due and observe
honesty and good faith."
"Basically,
the right of an employer to dismiss an employee differs from and should not be
confused with the manner in which such right is exercised. It must not be
oppressive and abusive since it affects one’s person and property."
In
the case at bar, respondent company offered to pay the 31 dismissed employees
one month salary in lieu of the one [1] month written notice required by law.
This practice was allowed under the Termination Pay Laws 26 whereby if the
employee is dismissed on the basis of just cause, the employer is not required
to serve advance written notice based on the number of years the employee has
served the employer, nor is the employer required to grant termination pay. It
is only where the dismissal is without just cause that the employer must serve
timely notice on the employee, otherwise the employer is obliged to pay the
required termination compensation, except where other applicable statutes
provide a different remedy. 27 Otherwise stated, it was the employer’s failure
to serve notice upon the employee, not the cause for the dismissal, that
rendered the employer answerable for terminal pay. 28 Thus, notice may effectively
be substituted by payment of the termination pay.
Under the New Labor Code, however, even if the dismissal is based on a just
cause under Art. 284, the one-month written notice to both the affected
employee and the Minister of Labor is required, on top of the separation pay.
Hence, unlike in the old termination pay laws, payment of a month’s salary
cannot be considered substantial compliance with the provisions of Art. 284 of
the Labor Code. Since the dismissal of the 31 employees of the Pharmaceutical
Division of respondent company was effected in violation of the above-cited
provision, the same is illegal.
Needless
to say, in the absence of a showing that the illegal dismissal was dictated by
anti-union motives, the same does not constitute an unfair labor practice as
would be a valid ground for a strike. The remedy is an action for reinstatement
with backwages and damages. Nevertheless, We take this actuation of respondent
company as evidence of the abusive and oppressive manner by which the
retrenchment was effected. And while the lack of proper notice could not be a
ground for a strike, this does not mean that the strike staged by petitioner
union was illegal because it was likewise grounded on a violation by respondent
company of the CBA, enumerated as an unfair labor practice under Art. 249 [i]
of the Labor Code.
4. Bataan
Shipyard and Engineering Co., Inc. vs. NLRC
G.R. No. 78604 May 9, 1988
GANCAYCO, J.:
Facts:
Petitioner
Bataan Shipyard & Engineering Co., Inc. (BASECO) is a corporate entity duly
organized under the laws of the Philippines. Its principal office is in Port
Area, Manila. On the other hand, private respondent National Federation of
Labor Unions (NAFLU) is a labor organization registered with the Department of
Labor and Employment. The Company has around a thousand employees in its
payroll and more than a hundred of them belong to the said labor organization.
The
Company filed with the herein respondent National Labor Relations Commission an
application for the retrenchment of 285 of its employees on the ground that the
firm had been incurring heavy losses. In the meantime, some employees who had
been on sick leave earlier were considered retrenched. All of those so
retrenched happen to be officers and members of the NAFLU.
Issue:
Whether
or not the action to retrenched employee tantamount to ULP
Ruling:
It is not disputed that the retrenchment undertaken by the Company is
valid. However, the manner in which this prerogative is exercised should not be
tainted with abuse of discretion. Labor is a person's means of livelihood. He
cannot be deprived of his labor or work without due process of law. Retrenchment
very heart of one's employment. While the right of strikes at the very heart of
an employer to dismiss an employee is conceded in a valid retrenchment, the
right differs from and should not be confused with the manner in which such
right is exercised. It should not be oppressive and abusive since it affects
one's person and property. Due process of law demands nothing less.
Under the circumstances obtaining in this case, We are inclined to
believe that the Company had indeed been discriminatory in selecting the employees
who were to be retrenched. All of the retrenched employees are officers and
members of the NAFLU. The record of the case is bereft of any satisfactory
explanation from the Company regarding this situation. As such, the action
taken by the firm becomes highly suspect. It leads Us to conclude that the firm
had been discriminating against membership in the NAFLU, an act which amounts
to interference in the employees' exercise of their right of self-organization.
Under Article 249 of the Labor Code of the Philippines, such interference is
considered an act of unfair labor Practice on the part of the Company, to wit —
ART. 249. Unfair labor practices of employers. — It shall be
unlawful for an employer to commit any of the following unfair labor practices:
(a) To interfere with, restrain or coerce employees in the exercise of
their right to self- organization.;
xxx xxx xxx
5. Phil Am
Cigar and Cigarette Factory Workers Independent Union vs. Phil AM & Cigar
Cigarette Manufacturing Co.
G.R. No. L-18364. February
28, 1963.
CONCEPCION, J.:
If
the dismissal of an employee due to the filing of unfair labor practice charge
against the employer is an undue restraint of the freedom to prefer charges for
violations of the labor laws, the dismissal of his brother owing to the
non-withdrawal of the charges of the former would be a greater and more
effective restraint upon said freedom, and, hence, constitutes an unfair labor
practice under Section 4 (a) (5), in relation to Section 4 (a) (4) of Republic
Act No. 875.
Facts:
Appeal
by certiorari of petitioner Philippine American Cigar &
Cigarette Workers Independent Union (NLU), from a decision of the Court of
Industrial Relations dismissing a complaint of said petitioner for unfair labor
practice, and ordering respondent Philippine American Cigar & Cigarette
Manufacturing Co., Inc. to reinstate Apolonio San Jose, within five (5) days
from notice of said decision, without backpay.
The
Court of Industrial Relations found "that the moving cause of Apolonio’s
dismissal was the refusal of his brother Francisco San Jose, to withdraw his
charge of unfair labor practice against the company. But" — it added
—" be that is it may, it cannot constitute an actionable offense under the
Act." Seemingly believing that, since the one dismissed by reason of said
charge of unfair labor practice was, not the complainant therein, Francisco San
Jose, but his brother Apolonio San Jose, the latter’s dismissal does not
constitute another unfair labor practice under Section 4(a) (5) of Republic Act
No. 875 , which provides that:
"(a) It shall be unfair labor practice for an employer:chanrob1es virtual
1aw library
x x x
"(5) To dismiss, discharge, or otherwise prejudice or discriminate against
an employee for having filed charges or for having given or being about to give
testimony under this Act."
Issue:
Whether
the actions of dismissal of Apolonio tantamount to ULP.
Ruling:
Yes.
if the dismissal of an employee due to the filing by him of said charges would
be and is an undue restraint upon said freedom, the dismissal of his brother
owing to the non-withdrawal of the charges of the former, would be and
constitute as much a restraint upon the same freedom. In fact, it may be
greater and more effective restraint thereto. Indeed, a complainant may be
willing to risk the hazards of a possible and even probable retaliatory action
by the employer in the form of a dismissal or another discriminatory act
against him personally, considering that nobody is perfect, that everybody
commits mistakes and that there is always a possibility that the employer may
find in the records of any employee, particularly if he has long been in the
service, some act or omission constituting a fault or negligence which may be
an excuse for such dismissal or discrimination. Yet, such complainant may not
withstand the pressure that would result if his brother or another member of
his immediate family were threatened with such action unless the charges in
question were withdrawn.
it
is a well settled rule of law that what is prohibited to be done directly shall
not be allowed to be accomplished indirectly. Thus in the Matter of Quidnick
Dye Works Inc. and Federation of Dyers, Finishers, Printers and Bleachers of
America (2 NLRB 963) it was held that the dismissal of a laborer on account of
union activities of his brother constituted an unfair labor practice.
"The
discharge of relatives of an employee who has himself been discriminately
discharged, for no other reason than the relation, is itself a discriminatory
discharge, in violation of Sec. 8 (3) of the Act. X x x where the
evidence indicated that the sole reason for the dismissal of a female employee
was that she was the wife of an employee who has been discharged. It was held
that the discharge under the circumstances was discriminatory and a violation
of the Act, even though discharged female employee was not herself a member of
any union.
6. Cainta Caholic School et. al. v. Cainta Catholic School Employees
Union
G.R.
NO. 151021.May 4, 2006
TINGA, J.:
Facts:
On
6 March 1986, a Collective Bargaining Agreement (CBA) was entered into between
Cainta Catholic School (School) and the Cainta Catholic School Employees Union
(Union) effective 1 January 1986 to 31 May 1989.
Msgr.
Mariano Balbago (Balbago) was appointed School Director in April 1987. From
this time, the Union became inactive.
It
was only in 10 September 1993 that the Union held an election of officers,
the School retired Llagas and Javier, who had rendered more than twenty
(20) years of continuous service, pursuant to Section 2, Article X of the CBA,
to wit:
An employee may be retired, either upon application by the employee
himself or by the decision of the Director of the School, upon reaching the age
of sixty (60) or after having rendered at
least twenty (20) years of service to the School the last three (3)
years of which must be continuous.
Three
(3) days later, the Union filed a notice of strike with the National
Conciliation and Mediation Board (NCMB).
On
8 November 1993, the Union struck and picketed the School's entrances.
Issue:
Whether
or not the school is guilty of ULP by invoking the compulsory retirement pursuant
to CBA upon the attempt to reactivate the union.
Ruling:
Yes. It is not difficult to see the anti-union bias of the school. One
of the first acts of private respondent Msgr. Balbago immediately after his
assumption of office as school director was to ask for a moratorium on all
union activities. With the union in inactive status, the school felt secure and
comfortable but when the union reactivated, the school became apprehensive and
reacted by retiring the union's two topmost officers by invoking the provisions
of the CBA. When the union furnished the school, through counsel, a copy of a
proposed CBA on 3 November 1993, the school in a cavalier fashion ignored it on
the pretext that the union no longer enjoyed the majority status among the
employees x x x
The appellate court concluded that the retirement of the two (2) union
officers was clearly to bust the reactivated union.
Having established that the School committed unfair labor practice, the
Court of Appeals declared that the "no-strike, no-lockout clause" in
the CBA was not violated when the union members staged a strike from 8 to 12
November 1993. It further held that
minor disorders or isolated incidents of perceived coercion attending the
strike do not categorize it as illegal:
x
Nonetheless, the premise warrants considering whether management may be
precluded from retiring an employee whom it is entitled to retire upon a
determination that the true cause for compulsory retirement is the employee's
union activities.
The law and this Court frowns upon unfair labor practices by management,
including so-called union-busting. Such illegal practices will not be sustained
by the Court, even if guised under ostensibly legal premises. But with respect
to an active unionized employee who claims having lost his/her job for union
activities, there are different considerations presented if the termination is
justified under just or authorized cause under the Labor Code; and if
separation from service is effected through the exercise of a duly accorded
management prerogative to retire an employee. There is perhaps a greater
imperative to recognize the management prerogative on retirement than the
prerogative to dismiss employees for just or authorized causes. For one, there
is a greater subjectivity, not to mention factual dispute, attached to the
concepts of just or authorized cause than retirement which normally contemplates
merely the attainment of a certain age or a certain number of years in the
service. It would be easier for management desirous to eliminate pesky union
members to abuse the prerogative of termination for such purpose since the
determination of just or authorized cause is rarely a simplistic question, but
involves facts highly prone to dispute and subjective interpretation.
7. BPI vs. BPI
Employees et.al.,
G.R. No. 164301 : October
19, 2011
LEONARDO-DE CASTRO, J.:
Facts: Bank of the
Philippine Islands (BPI) moves for reconsideration of the Supreme Court’s
Decision dated August 10, 2010, holding that former employees of the Far East
Bank and Trust Company (FEBTC) “absorbed” by BPI pursuant to the two banks’
merger in 2000 were covered by the Union Shop Clause in the then existing
collective bargaining agreement (CBA) of BPI with respondent BPI Employees
Union-Davao Chapter-Federation of Unions in BPI Unibank (the Union).
The Union Shop Clause involved in the controversy provided in part,
thus: “New employees falling within the bargaining unit as defined in Article I
of this Agreement, who may hereafter be regularly employed by the Bank shall,
within thirty (30) days after they become regular employees, join the Union as
a condition of their continued employment.”
In seeking the reversal of August 10, 2010 Decision, petitioner insists
that FEBTC employees cannot be considered new employees as BPI merely stepped
into the shoes of FEBTC as an employer purely as a consequence of the merger.
Issue: Whether or not the
“absorbed” FEBTC employees fell within the definition of “new employees” under
the Union Shop Clause.
Ruling: Yes. Although
by virtue of the merger BPI steps into the shoes of FEBTC as a successor
employer as if the former had been the employer of the latter’s employees from
the beginning it must be emphasized that, in reality, the legal consequences of
the merger only occur at a specific date, i.e., upon its
effectivity which is the date of approval of the merger by the SEC.
In other words, the obligation of BPI to pay the salaries and benefits
of the former FEBTC employees and its right of discipline and control over them
only arose with the effectivity of the merger. Concomitantly, the obligation of
former FEBTC employees to render service to BPI and their right to receive
benefits from the latter also arose upon the effectivity of the merger.
Hence, what is material is that all of these legal consequences of the
merger took place during the life of an existing and valid CBA between BPI and
the Union wherein they have mutually consented to include a Union Shop Clause.
8. Manalang
et.al., vs. Artex Development Co.
G.R. No. L-20432.October 30,
1967
CASTRO, J.:
Facts:
After due trial, Presiding Judge
Bautista rendered judgment finding that the petitioners were not aware of the
existence of the collective bargaining agreement, much less of its closed-shop
provision, and holding, in consequence that they were not bound by it. The
decision observed that the provision in question was "merely a cloak to
cover the discriminatory dismissal of the complaints, due to their union
activities in forming another union, which the company did not like." The
Company was ordered to reinstate the petitioners, with back wages from the date
of their dismissal and "all the rights and privileges formerly
appertaining thereto". The BBLU was ordered to readmit them to active
membership therein.
Issue:
Whether
or not the union members are bound to the closed-shop stipulation in the CBA
despite their unawareness.
Ruling:
Even if the union members were unaware of the closed-shop stipulation in
the CBA, they are bound by it. Neither their ignorance of, nor their
dissatisfaction with its terms and conditions would justify breach thereof or
the formation by them of a union of their own. This is so because a union
member who is employed under an agreement between the union and his employer is
bound by the provisions thereof since it is a joint and several contract of the
members of the union entered into by the union as their agent.
9. Tanduay
Distillery Labor Union vs. NLRC
GR. No. L-75037. April 30, 1987
GUTIERREZ, JR.:
Facts: On March 11,1980, Tanduay
Distillery, Inc. (TDI) and Tanduay Distillery Labor Union (TDLU) entered into a
Collective Bargaining Agreement (CBA) for three (3) years from July 1,1979 to
June 30,1982. The CBA contained a union security clause, which provided:
"All workers who are or may during the effectivity of this Contract,
become members of the union in accordance with its Constitution and By-Laws
shall, as a condition of their continued employment, maintain membership in
good standing in the union for the duration of the agreement." In October
1980, while the CBA was still in effect, a number of TDLU members joined
another union, the Kaisahan ng Manggagawang Pilipino (KAMPIL) and organized its
local chapter in TDI. Soon thereafter, KAMPIL filed a petition for
certification election to determine union representation in TDI. TDLU required
those who disaffiliated to explain why TDLU should not be punished for
"disloyalty" to the TDLU. At the same time TDLU created a committee
to investigate its erring members. All of the latter were given a chance to
explain their side. Thereafter, the TDLU, upon recommendation of the Committee,
expelled the disaffiliating members from TDLU and demanded that TDI terminate
their employment since they had lost their membership with TDLU. Acting on said
request, TDI terminated the employment of the disaffiliating union members.
Issue: Whether or not TDI was
justified in terminating private respondent's employment based on TDLU's demand
to enforce the union security clause of the CBA
Ruling: The employer did nothing
but to put in force their agreement when it separated the disaffiliating union
members upon the recommendation of the union. Such a stipulation is not only
necessary to maintain loyalty and preserve the integrity of the union but is allowed
by the Magna Carta of Labor when it provided mat while it is recognized that an
employee shall have the right to self-organization, it is at the same time
postulated that such rights shall not injure the right of the labor
organization to prescribe its own rules with respect to the acquisition or
retention of membership therein.
This provision is an indirect restriction on the right of an employee to
self-organization. It is a solemn pronouncement of a policy that while an
employee is given the right to join a labor organization, such right should
only be asserted in a manner that will not spell the destruction of the same
organization. The law requires loyalty to the union on the part of its members
in order to obtain to the full extent its cohesion and integrity. There is
nothing improper in the disputed provisions of the collective bargaining
agreement entered into between the parties. Having ratified that CBA and being
then members of the TDLU, the private respondents owe fealty and are required
under the Union Security clause to maintain their membership in good standing
with it during the term thereof, a requirement which ceases to be binding only
during the 60-day freedom period immediately preceding the expiration of the
CBA. In Villar vs. Indong (121 SCRA 444), we held that "petitioners,
although entitled to disaffiliation from their union and to form a new
organization of their own, must, however, suffer the consequences of their
separation from the union under the security clause of the CBA."
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