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Francisco Salunga v. CIR, San Miguel Brewery, Inc.

and NABAILUP-PAFLU
GR. No. L-22456, September 27, 1967

Facts:
Petitioner is an employee of San Miguel Brewery, Inc. and a member of PAFLU. Petitioner by
being a member of PAFLU adheres to its collective bargaining agreement that upon resignation
from latter he would be forfeiting his position in the company. Due to open criticism by
petitioner against the union, he has been treated badly and teased by the members of the
latter, which prompt his resignation. The Union accepted the resignation and transmitted it to
the company. The company informed petitioner of the consequence of resignation which
prompted the latter to withdraw the resignation. The union did not accept his withdrawal and
urged company to implement the collective agreement. Petitioner notified the union that it was
appealing to the PAFLU National Convention, hence urging to defer his case pending appeal.
Notwithstanding such appeal, he was given notice of dismissal. Hence, petitioner filed for unfair
labor practice against PAFLU, the company and etc. The trial judge ruled that the union and
company has committed unfair labor practice, but upon motion by respondents to the CIR, the
latter reversed the decision. Hence, this appeal to the Court.

Issue:
Whether or not CIR committed error in judgment in not rendering PAFLU and the company
guilty of unfair labor practice as ruled by the trial court

Ruling:
The appeal is well taken. Although, petitioner had resigned from the Union and the latter had
accepted the resignation, the former had, soon latter – upon learning that his withdrawal would
result in separation from the company, withdrawn said resignation. The refusal to consent by
the union was without just cause, furthermore upon the facts, the refusal is based due to his
critical attitude towards measures taken by them. It should be noted that the CIR did not
reverse these findings over even question the accuracy thereof. The officers of the union even
admitted to such when they branded petitioner as disloyal to the union.
Although, generally, a state may not compel ordinary voluntary associations to admit thereto
any given individual, because membership therein may be accorded or withheld as a matter of
privilege, the rule is qualified in respect of labor unions holding a monopoly in the supply of
labor, either in a given locality, or as regards a particular employer with which it has a closed-
shop agreement.
Consequently, it is well settled that such unions are not entitled to arbitrarily exclude qualified
applicants for membership, and a closed-shop provision would not justify the employer in
discharging, or a union in insisting upon the discharge of, an employee whom the union thus
refuses to admit to membership, without any reasonable ground therefor.
We cannot agree, however, with the finding of the trial Judge to the effect that the Company
was guilty of unfair labor practice. It even tried to help him, although to such extent only as was
consistent with its obligation to refrain from interfering in purely internal affairs of the Union. In
finding, this notwithstanding, that the Company is guilty of unfair labor practice, the trial Judge
seemed to have been unduly influenced by the fact that the former had dismissed the
petitioner despite his announced intention to appeal from the decision of the Union and that of
the Officers of PAFLU to its "Supreme authority", namely, the PAFLU's "National Convention". In
other words, said Judge felt that the Company should have waited for the action of the national
convention before issuing the notice of dismissal.
Just the same, having been denied readmission into the Union and having been dismissed from
the service owing to an unfair labor practice on the part of the Union, petitioner is entitled to
reinstatement as member of the Union and to his former or substantially equivalent position in
the Company, without prejudice to his seniority and/or rights and privileges, and with back pay,
which back pay shall be borne exclusively by the Union.
With this modification, the aforementioned decision of the trial Judge is hereby affirmed in all
other respects, and the appealed resolution of the Court of Industrial Relations en banc is
reversed, with costs against respondents, except the Company.

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