National Association of Trade Unions (NATU) v. Republic Planters Bank Digest, G. R. No. 93468

NATU v Republic
G. R. No. 93468, December 29, 1994


Facts of the Case:

Petitioner NATU filed a petition for certification election to determine the exclusive bargaining agent of its supervisory employees.  The bank (Private respondent) moved to dismiss the petition alleging that the supervisory employees are actually managerial employees hence prohibited from joining unions.  The Med Arbiter granted the petition but the decision was modified by the Sec. of Labor on the ground that the ff employees are deemed as managerial and/or confidential employees and are therefore ineligible to join or form labor unions (Dept. Managers,  Asst. Managers,  branch Cashiers and Controllers).

ISSUE :  W/N the Department Managers, Assistant Managers, Branch Managers/OICs, Cashiers and Controllers of respondent Bank are managerial and/or confidential employees hence ineligible to join or assist the union of petitioner.


RULING:
The subject employees are supervisory and not managerial.  As provided under 212 of the Philippine Labor Code,  a Managerial employee is;

a)   One vested with power to lay down and execute management policies,  or to hire,                   transfer,  suspend, lay off, recall, discharge,  assign or discipline employees, and 

b)  One vested with both the power or prerogative.

Like Branch Managers, Cashiers and Controllers, Department Managers do not possess the power to lay down policies nor to hire, transfer, suspend, lay off, recall, discharge, assign or discipline employees. They occupy supervisory positions, charged with the duty among others to "recommend proposals to improve and streamline operations.

On one hand, a confidential employee is one entrusted with confidence on delicate matters, or with the custody, handling, or care and protection of the employer's property.

Therefore only the Branch Managers/OICs, Cashiers and Controllers of respondent bank who are deemed as confidential employees are ineligible to join or assist petitioner NATU-Republic Planters Bank Supervisors Chapter, or join, assist or form any other labor organization

Doctrine of Necessary Implication
The disqualification of managerial employees from joining a union is due to the evident conflict of interest as they are supposed to be on the side of the management.  As to confidential employees,  their disqualification is due to the undue advantage they possess.
Branch managers/Cashiers/Controllers are all considered confidential employees and hence disqualified from joining a labor organization.  Do note that this is not applicable to all banks in general.

* The blogger is also graduate of Industrial Relations major in Human Resource Management hence Labor Relations is a topic within her sphere of interest.