SMC Quarry 2 Workers Union - February Six Movement (FSM) Local Chapter No. 1564 v. Titan Megabags Industrial Corporation
REITERATIONFacts
The Antecedents: Petitioner SMC Quarry 2 Workers Union-February Six Movement (FSM) Local Chapter No. 1564 filed a petition for certification election to represent the regular rank-and-file workers of respondent Titan Megabags Industrial Corporation. Respondent opposed, claiming the workers were employees of Stitchers Multi-Purpose Cooperative (SMC), an independent contractor engaged by respondent. Procedural History: The Med-Arbiter ruled that an employer-employee relationship existed and ordered a certification election. The Office of the DOLE Secretary affirmed this ruling. Respondent's motion for reconsideration was denied for being filed seven days late. Respondent then filed a petition for certiorari with the Court of Appeals, alleging grave abuse of discretion by the DOLE Secretary. The Petition: The Court of Appeals set aside the DOLE Secretary's resolutions and disallowed the certification election. Petitioner filed the instant petition for review on certiorari, asserting that the Court of Appeals erred in setting aside the final and executory resolutions of the DOLE Secretary and in finding that SMC was an independent contractor.
Issue(s)
Whether the Court of Appeals erred in setting aside the final and executory Resolutions of the Office of the DOLE Secretary. Whether the Court of Appeals erred in holding that SMC is an independent contractor and that no employer-employee relationship exists between respondent and members of petitioner union, thereby justifying the disallowance of a certification election.
Ruling
The petition is GRANTED. The Decision dated July 31, 2001 and the Resolution dated November 13, 2001 of the Court of Appeals are REVERSED. The Resolutions of the Office of the DOLE Secretary dated April 13, 2000 and March 19, 2001 are AFFIRMED.
Ratio Decidendi
On the issue of the Court of Appeals setting aside the DOLE Secretary's Resolutions: The Court reiterated that under Article 259 of the Labor Code, as amended, and Section 15, Rule XI, Book V of the Omnibus Rules Implementing the Labor Code, decisions of the Secretary of Labor on appeals from Med-Arbiter orders in certification election cases are final and executory, unless restrained by a court. The proper remedy for an aggrieved party is to file a timely motion for reconsideration, and then a special civil action for certiorari under Rule 65. Respondent's failure to file its motion for reconsideration seasonably was deemed jurisdictional and fatal, rendering the DOLE Secretary's resolutions final and executory. Consequently, the merits of the case could no longer be reviewed by the Court of Appeals to determine grave abuse of discretion. On the issue of the employer-employee relationship and the employer's standing in certification elections: Even if there were no procedural flaws, the Court of Appeals should have denied the petition for certiorari. The Supreme Court has consistently held that in certification elections, the employer is considered a "bystander" and has no right or material interest to assail the certification election. While employers are entitled to be notified, they should not be considered parties with an inalienable right to oppose the petition. The employer's proper stance is one of neutrality, allowing employees to freely choose their bargaining representative without undue influence or interference.
Main Doctrine
An employer is considered a "bystander" in a certification election and has no material interest or right to assail the proceedings. Failure to seasonably file a motion for reconsideration of the Secretary of Labor's resolution renders the same final and executory, precluding further review.