San Miguel V Laguesma

G.R. No.
110399 August 15, 1997
SAN MIGUEL CORPORATION SUPERVISORS AND EXEMPT UNION AND

ERNESTO L. PONCE, President, petitioners,
vs.
HONORABLE BIENVENIDO E. LAGUESMA IN HIS CAPACITY AS
UNDERSECRETARY OF LABOR AND EMPLOYMENT, HONORABLE DANILO L.
REYNANTE IN HIS CAPACITY AS MED-ARBITER AND SAN MIGUEL
CORPORATION, respondents.
FACTS:
Petitioner union filed before the Department of Labor and Employment (DOLE) a
Petition for Direct Certification or Certification Election among the supervisors and
exempt employees of the SMC Magnolia Poultry Products Plants of Cabuyao, San
Fernando and Otis. Med-Arbiter Danilo L. Reynante issued an Order ordering the
conduct of certification election among the supervisors and exempt employees of the
SMC Magnolia Poultry Products Plants of Cabuyao, San Fernando and Otis as one
bargaining unit.
Respondent San Miguel Corporation filed a Notice of Appeal with Memorandum on

Appeal, pointing out, among others, the Med-Arbiter's error in grouping together all
three (3) separate plants, Otis, Cabuyao and San Fernando, into one bargaining unit,
and in including supervisory levels 3 and above whose positions are confidential in
nature.
The public respondent, Undersecretary Laguesma, granted respondent company's

Appeal and ordered the remand of the case to the Med-Arbiter of origin for
determination of the true classification of each of the employees sought to be included
in the appropriate bargaining unit.
Upon petitioner-union's motion Undersecretary Laguesma granted the reconsideration

prayed for on September 3, 1991 and directed the conduct of separate certification
elections among the supervisors ranked as supervisory levels 1 to 4 (S1 to S4) and the
exempt employees in each of the three plants at Cabuyao, San Fernando and Otis.
An Order was issued by the public respondent granting the Motion, citing the doctrine
enunciated in Philips Industrial Development, Inc. v. NLRC 2 case. Said Order reads in
part:
. . . Confidential employees, like managerial employees, are not allowed to

form, join or assist a labor union for purposes of collective bargaining.
In this case, S3 and S4 Supervisors and the so-called exempt employees are
admittedly confidential employees and therefore, they are not allowed to form,
join or assist a labor union for purposes of collective bargaining following the
above court's ruling. Consequently, they are not allowed to participate in the
certification election.
ISSUES:
1. Whether or not the employees in question are confidential employees.
2. Whether the distance between the three plants disqualify their petition to be one
bargaining unit.
HELD:
1. No, they are not. Confidential employees are those who (1) assist or act in a
confidential capacity, (2) to persons who formulate, determine, and effectuate
management policies in the field of labor relations.
In the case at bar, the confidential data the questioned employees handle relate
to their functions. As held in Westinghouse Electric Corporation v. National
Labor Relations Board, "an employee may not be excluded from appropriate
bargaining unit merely because he has access to confidential information
concerning employer's internal business operations and which is not related to
the field of labor relations." The court did not classify them as confidential,
thus they may join and/or form a union.
2. No, it does not. An appropriate bargaining unit may be defined as "a group of
employees of a given employer, comprised of all or less than all of the
entire body of employees, which the collective interest of all the
employees, consistent with equity to the employer, indicate to be best
suited to serve the reciprocal rights and duties of the parties under the
collective bargaining provisions of the law."
It is readily seen that the employees in the instant case have "community or
mutuality of interests," which is the standard in determining the proper
constituency of a collective bargaining unit. It is undisputed that they all belong
to the Magnolia Poultry Division of San Miguel Corporation. This means that,
although they belong to three different plants, they perform work of the same
nature, receive the same wages and compensation, and most importantly, share
a common stake in concerted activities. Therefore, they may form one
bargaining unit.

San Miguel V Laguesma

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G.R. No.

110399 August 15, 1997

SAN MIGUEL CORPORATION SUPERVISORS AND EXEMPT UNION AND

Respondent San Miguel Corporation filed a Notice of Appeal with Memorandum on

The public respondent, Undersecretary Laguesma, granted respondent company's

Upon petitioner-union's motion Undersecretary Laguesma granted the reconsideration

. . . Confidential employees, like managerial employees, are not allowed to

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