The Hercules Industries V SOLE

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The Hercules Industries, Inc. vs.

SOLE

Facts:

Hercules Industries, Inc. (company) is a corporation which employs more or less 180 employees. Private
respondent National Federation of Labor (NFL) filed a petition for CE, alleging that the existing CBA is
already bound to expire and that it enjoys more than 20% of the rank-and-file employees. MA: issued an
order for the conduct of a CE with the choices: 1. NFL; 2. Hercules Employees Labor Union (HELU); 3.
No union.

Pre-election conference: company charged that the list of voters included 98 scabs (contract replacement
workers?); 16 capatazes (boss, foreman, overseer); 8 security guards; and 9 managerial employees. MA:
deleted in the list of voters the managerial employees, security guards and the strike employees who have
executed a deed of quitclaim and voluntarily accepted separation pay. NFL: appealed the order to the
BLR, alleging that the MA still allowed for the voting of the 98 contract replacement workers, among
others. Pending resolution of NFL’s appeal, however, the CE took place.

BLR: granted the appeal of NFL; rendered the CE as null and void, and ordered a new CE minus the 98
scab replacement.CE took place, and NFL won as the SEBA of company’s rank-and-file. MA afterwards
certified the result. Company: filed an MR/appeal with DOLE.DOLE: denied the petition. Hence, this
petition.

ISSUE The pivotal issue in this case is whether or not the petitioner, Hercules Industries, Inc., as
employer, may question the validity of the certification election among its rank-and-file employees.

Held:

In a long line of decisions, this Court has undeviatingly ruled that the employer is not a party to a
certification election which is the sole or exclusive concern of the workers (Rizal Workers Union v.
Ferrer-Calleja, 186 SCRA 431). In the choice of their collective bargaining representative, the
employer is definitely an intruder. His participation, to put it mildly, deserves no encouragement
(Consolidated Farms, Inc. v. Noriel, 84 SCRA 469; Filipino Metals Corp. v. Ople, 107 SCRA 211)

- The employer is not a party to a CE which is the sole or exclusive concern of the workers. In the
choice of their collective bargaining representative, the employer is definitely an intruder.
o The only instance when the employer may be involved in that process is when it is
obliged to file a petition for CE on its workers’ request to bargain collectively pursuant to
Art. 258 of the LC. After the order for a CE issues. The employer’s involvement ceases,
and it becomes a neutral bystander.
o Case at hand: while employees never requested the company to bargain collectively, still,
they did not object to the result of the CE.
- Petitioner’s challenge against the validity of the CE is devoid of any merit.
o Petitioner: no notice of CE had been issued, no copies were given to it, nor posted in
conspicuous places, the payroll was not used as basis for voters’ list, and that only 15 of
the 98voters signed their names showing that they actually voted.
o These allegations are all belied by the minutes of the pre-election conference which
showed that company was duly notified of the conference and attended the same. The
minutes of the CE show that the list of voters was copied from the payroll. The same
minutes also certified that “the CE just concluded was conducted in the most just, honest
and (free) manner without untoward happening.” And that “we certify that the result
above is true and correct”. This refutes company’s allegation that only 15 of the 98
workers signed the master list to show that they actually voted again.
o Besides, there is no showing that the company protested the conduct of the CE. Book V,
Rule VI sec. 3 of the Omnibus Rules states:
“Sec. 3. The Representation officer may rule on any on-the-spot question arising
from the conduct of the election. The interested party may however, file a protest
with the representation officer before the close of the proceedings.
Protests not so raised are deemed waived. Such protests shall be contained in the
minutes of the proceedings.”
- On the basis of the election minutes, which are the only relevant and competent evidence on
the conduct of the election, the MA did not err in declaring the NFL as the duly elected
bargaining agent of the company’s rank and file workers.

Petition Dismissed.

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