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ELECTROMAT MANUFACTURING v.

LAGUNZAD  Before the CA, Electromat argued that DO 40-03 removed the safety measures placed by
172699/ JULY 27, 2011 / BRION, J./ LABOR II – Government regulation: implementing the policy on trade LC 234 (240) against the commission of fraud in the registration of unions/
unionism/RLAurellano  CA: Petition dismissed, BLR ruling affirmed. There are sufficient safeguards in the LC
NATURE Petition for review on certiorari of the decision and resolution of the CA  Before the SC, Electromat argues:
PETITIONER Electromat Manufacturing and Recording Corporation o DO 40-03 delisted some requirements found in LC 234 (240)
RESPONDENTS Hon. Ciriaco Lagunzad, Regional Director, NCR, DOLE, Hon. Hans Leo  The enumeration of these requirements is exclusive, and should not be diminished
Cacdac, Director, BLR, and Nagkakaisang Samahan ng Manggagawa ng  The same requirements should apply to all labor unions whether they be
Electromat-WASTO independent labor orgs, federations, or local chapters.
 Thus, DO 40-03 amended LC 234 (240) which Is an invalid exercise of rule-making
SUMMARY. Private respondent union applied for a certificate of registration with the BLR.  Union argues that the issuance of the certificate was supported by substantial evidence,
Being a charter affiliate of a national union, they submitted requirements in accordance with and should be entitled great respect
DO 40-03, which reduced the requirements found in LC 234 (240). Petitioner company filed a
petition for cancellation, assailing DO 40-03 for being an invalid exercise of rule-making ISSUES & RATIO.
power. SC upheld the validity of DO 40-03, as such is an expression of public policy in 1. WON DO 40-03 is a valid exercise of rule-making power – YES
recognizing the distinctions between national unions, local chapters, and independent DO 40-04 is an expression of the government’s implementing policy on trade
unions. unionism, which is this: ‘the intent of the law in imposing lesser requirements in the
DOCTRINE. The intent of the law in imposing lesser requirements in the case of a branch or case of a branch or local of a registered federation or national union is to encourage
local of a registered federation or national union is to encourage the affiliation of a local the affiliation of a local union with a federation or national union in order to increase
union with a federation or national union in order to increase the local union’s bargaining the local union’s bargaining powers respecting terms and conditions of labor3’
powers respecting terms and conditions of labor
The changes implemented by DO 40-03 were made to recognize the distinctions made in
FACTS. the law itself between federations and their local chapters, and independent unions; local
 Private respondent Nagkakaisang Samahan ng Manggagawa ng Electromat-WASTO chapters seemingly have lesser requirements because they and their members are
(union), a charter affiliate of Workers Advocates for Struggle (WASTO), applied for deemed to be direct members of the federation to which they are affiliated, which
registration with the Bureau of Labor Relations (BLR). federations are the ones subject to the strict registration requirements of the law.
o BLR issued the union a Certification of Creation of Local Chapter (which is a certificate
of registration for affiliated unions) Do 40-03 being an expression of public policy by the executive department, it is not for the
 Electromat Manufacturing (Electromat) filed a petition for cancellation of the union’s Court to question this change in policy.
registration certificate, claiming that
o The union failed to comply with then LC 234 (now LC 240)1 In addition, the union substantially complied with the requirements for registration.
o DO 40-032 unconstitutionally diminished the requirements laid out by LC 234 (240) Therefore, the issuance of their certificate of registration is proper.
 DOLE-NCR Regional Director Lagunzad dismissed the petition. BLR Director Cacdac
affirmed the dismissal
DECISION.
Petition denied for lack of merit. CA decision affirmed.
1LC 240. Requirements of Registration.—Any applicant labor organization, association or group of
unions or workers shall acquire legal personality and shall be entitled to the rights and privileges .
granted by law to legitimate labor organizations upon issuance of the certificate of registration
based on the following requirements:
(a) Fifty pesos (P50.00) registration fee;
(b) The names of its officers, their addresses, the principal address of the labor organization, the
minutes of the organizational meetings and the list of the workers who participated in such
meetings;
(c) The names of all its members comprising at least twenty percent (20%) of all the employees in
the bargaining unit where it seeks to operate;
(d) If the applicant union has been in existence for one or more years, copies of its annual financial
reports; and
(e) Four (4) copies of the constitution and by-laws of the applicant union, minutes of its adoption or
ratification, and the list of the members who participated in it
2DO 40-03 amended the requirements in LC 234 (240) by removing some requirements for charter 3From Progressive Development v. SOLE, which upheld the validity of DO 9-97. DO 9-97 created
affiliates of national unions/federations. Sec. 3, Rule II, Book V of the LC IRR, which reduced the requirements for charter/affiliate unions.

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