Philacor v. Laguesma

Posted: May 1, 2015 in case digests, labor relations
Tags: , ,

Philacor v. Laguesma

 (By Yul on 28 February 2015)


  • The Genuine Organization of Workers in Hotel, Restaurant and Allied Industries (GLOWHRAIN) filed with the Department of Labor and Employment (DOLE) a petition for certification election among the supervisory employees of Philacor. However, this was opposed by the latter, asserting that the questioned employees are managerial employees exercising managerial powers, functions and prerogatives whose decisions were instantly effective and not merely recommendatory, and further asserted, that the alleged issue of whether petitioning employees are managerial employees constituted a prejudicial question, which should be resolved before any further proceedings could continue.
  • Eventually, the concerned Med-Arbiter issued an order directing the holding of a certification election among the supervisory employees of Philacor.
  • Philacor filed a Motion to exclude the questioned employees before the Office of the SOLE. Sec. Laguesma affirmed the Mid-Arbiter’s decision.
  • Subsequently, Philacor’s Motion for Reconsideration modified SOLE’s decision by finding that the employees occupying the job titles of “Production Supervisor,” “Superintendent Production” and “Production Manager” are managerial employees imbued with managerial prerogatives, and therefore are ineligible to participate in the certification election among the supervisory employees.
  • Consequently, the GLOWHRAIN filed a motion for reconsideration, which challenged the authenticity of the job descriptions submitted by Philacor, alleging that the same are irregular having been issued only for the purpose of buttressing petitioner’s motion for reconsideration, which was granted by Sec. Laguesma. Thus, the filing of Philacor’s Petition.

Issue: Whether the petitioning employees are supervisory employees eligible to form a supervisory union.

Held: Yes. Secretary Laguesma is correct in its findings that the questioned employees are supervisory employees and are eligible to form a supervisory union.

Ratio: The Labor Code was further amended by Republic Act No. 6715. Section 4 of the said Republic Act, amended Article 212 (m), which now contains separate definitions for managerial and supervisory employees, to wit:

“(m) Managerial employee is one who is vested with powers or prerogatives to lay down and execute management policies and/or to hire, transfer, suspend, lay-off, recall, discharge, assign or discipline employees. Supervisory employees are those who, in the interest of the employer, effectively recommend such managerial actions if the exercise of such authority is not merely routinary or clerical in nature but requires the use of independent judgment. (Underscoring supplied).”

No evidence was presented by Philacor to bolster its claim that petitioning employees exercised the power to shorten employees’ probationary period and the power to change the status of or dismiss a casual employee.

As to the power to discipline, suspend and discharge employees, the SC finds that the petitioning employees merely enforce the company rules and regulations against erring employees. But they are not the one who conducts investigation and imposes penalty.

They do not lay down and execute management policies nor have the power to hire, but merely recommend such management actions.

PHILACOR belatedly presented the job descriptions of the Production Supervisor, Superintendent (Production) and Manager (Production) to show that indeed petitioning employees are exercising managerial powers and prerogatives.

Fallo: The petition is DENIED. The Order dated March 30, 1992 of respondent Undersecretary of Labor and Employment is AFFIRMED.



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