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    San Miguel Brewery Sales Force Union

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    The case involved a dispute between a union representing sales employees of San Miguel Corporation and the corporation over the implementation of a new marketing scheme called the Complementary Distribution System. The union claimed the scheme violated their collective bargaining agreement and would reduce sales commissions. The court ruled the scheme was a valid exercise of management prerogative and did not violate the agreement.

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    San Miguel Brewery Sales Force Union

    Uploaded by

    hello_hoarder
    91 views1 page
    The case involved a dispute between a union representing sales employees of San Miguel Corporation and the corporation over the implementation of a new marketing scheme called the Complementary Distribution System. The union claimed the scheme violated their collective bargaining agreement and would reduce sales commissions. The court ruled the scheme was a valid exercise of management prerogative and did not violate the agreement.

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    labstan

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    The case involved a dispute between a union representing sales employees of San Miguel Corporation and the corporation over the implementation of a new marketing scheme called the Complementary Distribution System. The union claimed the scheme violated their collective bargaining agreement and would reduce sales commissions. The court ruled the scheme was a valid exercise of management prerogative and did not violate the agreement.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    91 views1 page

    San Miguel Brewery Sales Force Union

    Uploaded by

    hello_hoarder
    The case involved a dispute between a union representing sales employees of San Miguel Corporation and the corporation over the implementation of a new marketing scheme called the Complementary Distribution System. The union claimed the scheme violated their collective bargaining agreement and would reduce sales commissions. The court ruled the scheme was a valid exercise of management prerogative and did not violate the agreement.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    CASE: San Miguel vs.

    Ople
    SAN MIGUEL BREWERY SALES FORCE UNION (PTGWO), petitioner, vs. HON. BLAS F. OPLE, as Minister of Labor and SAN MIGUEL
    CORPORATION, respondents.
    FACTS
    -On April 17, 1978, a collective bargaining agreement was entered into by San Miguel Corporation Sales Force Union (PTGWO), and the
    private respondent, San Miguel Corporation(SMC) allowing employees with the appropriate bargaining unit to be entitled to a basic
    monthly compensation plus commission based on sales.
    -On September 1979, SMC introduced a marketing scheme called Complemetary Distribution System" (CDS) whereby its beer products
    were offered for sale directly to wholesalers through San Miguel's sales offices.
    -PTGWO then filed a complaint for unfair labor practice on the ground that it violates the collective bargaining agreement as it would
    reduce the take home pay of the salesmen and their truck helpers for the company would be unfairly competing with them.
    Minister of Labor: dismissed the petition upheld that CDS was a valid exercise of management prerogative.
    ISSUE: Whether or not the CDS violates the collective bargaining agreement? NO.
    RULING:
    CDS was a valid exercise of management prerogatives
    Except as limited by special laws, an employer is free to regulate, according to his own discretion and judgment, all aspects of
    employment, including hiring, work assignments, working methods, time, place and manner of work, tools to be used, processes to be
    followed, supervision of workers, working regulations, transfer of employees, work supervision, lay-off of workers and the discipline,
    dismissal and recall of work.
    Every business enterprise endeavors to increase its profits. In the process, it may adopt or devise means designed towards that goal.
    Even as the law is solicitous of the welfare of the employees, it must also protect the right of an employer to exercise what are clearly
    management prerogatives. The free will of management to conduct its own business affairs to achieve its purpose cannot be denied.
    CDS was not an indirect way of busting the union
    So long as a company's management prerogatives are exercised in good faith for the advancement of the employer's interest and not for
    the purpose of defeating or circumventing the rights of the employees under special laws or under valid agreements, this Court will uphold
    them.
    San Miguel Corporation's offer to compensate the members of its sales force who will be adversely affected by the implementation of the
    CDS by paying them a so-called "back adjustment commission" to make up for the commissions they might lose as a result of the CDS
    proves the company's good faith and lack of intention to bust their union.

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