G.R. No.

L-47775 July 5, 1980

JULIAN DUYAG, ARMANDO OLIVARES, JOSE ECHEVARIA, ALEJANDRO SEVILLA and FELIMON
GUINGON, petitioners,
vs.
HON. AMANDO G. INCIONG, as Acting Director of Labor Relation CARMELO C. NORIEL, as Director
of Labor Relations, RICA R. MANALAD, HONORATO K. LEANO, EDUARDO AMPARO and SANTOS
PUERTO, respondents.

FACTS:

The plaintiffs in this case are arrastre checkers at E. Razon, Inc. in the South Harbor, Port Area, Manila as well as
bona fide members of the Associated Port Checkers and Workers Union. Meanwhile, the defendants are the officers
of the union, who, respectively, are the president (for more than twenty years), treasurer, vice-president and
auditor of the union.

The reason for this case are the unauthorized increase in their monthly union contributions, and deduction on their
midyear bonus as contribution to the union. These increases and deduction happened in the years 1972, 1973, 1975,
and 1976. Also, E. Razon remitted the employees’ profit share through the union which the union failed to distribute
completely. These actions was lead by the union president, Rica Manalad. Manalad also allowed disbursements of
retirement funds to some members without the concurrence of the required number of members. While this case
was pending, Manalad and the union treasurer, Leano, presented to the court that their actions were already ratified
by 90% of the members, the med arbiter however, though this case is already moot still chose to look in the case
since these are violations of the constitutional by laws of the union.

As the case progress, it was discovered that Manalad had other union memberships and offices assumed in other
unions and labor organization which she had questionable transactions with using their union. With the given
reasons, the Med Arbiter ordered the removal of the private respondents as officers of the union and directed them
to reimburse to the members thereof the amounts illegally collected from them.

On appeal with the Director of Labor Relations, it was reversed. The Director held that resort to intra-union remedies
is not necessary and that the five complainants have the rights and personality to institute the proceedings for the
removal of the respondents, to recover the amount illegally collected orwithheld from them and to question illegal
disbursements and expenditure of union funds.

However, the Director ruled that the power to remove the union officers rests in the members and that the Bureau
of Labor Relations generally has nothing to do with the tenure of union officers which "is a political question". The
Director further ruled that his office has jurisdiction to look into the charge of illegal disbursements of union funds.
He directed the Labor Organization Division of the Bureau to examine the books of account and financial records of
the union and to submit a report on such examination. This decision was affirmed by the Under Secretary of Labor.

ISSUE: Whether or not the Director of Labor Relations is correct in reversing the decision of the Med Arbiter?

Held:

No.

We hold that the Labor Arbiter did not err in removing the respondents as union officers. The membership of
Manalad and Puerto in another union is a sufficient ground for their removal under the constitution and by-laws of
the union. In Manalad's case, his organization of a family-owned corporation competing with. the union headed by
him renders it untenable that he should remain as union president.The petitioners are entitled to the refund of the
union dues illegally collected from them. The union should be the proper refund.bThe Director of Labor Relations
erred in holding that, as a matter of policy, the tenure of union office being a "political question is, generally, a
matter outside his Bureau's jurisdiction and should be pa upon by the union members themselves.

WHEREFORE, (1) that portion of the decision of the med-arbiter, removing respondents Manalad, Leano and Puerto
as union officers, is affirmed. (Respondent Amparo is no longer an officer of the union.)

(2) We also affirm that portion of the decision of the Director of Labor Relations, directing the Bureau's Labor
Organization Division to examine the books of accounts and records of the Associated Port Checkers and Workers
Union and to submit a report on such examination within a reasonable time.

(3) We declare that the five petitioners are entitled to a refund of the union dues illegally collected from them. The
Director of Labor Relations is ordered to require the union to make the refund within twenty days from notice to his
counsel of the entry of judgment in this case. Costs against the private respondents.