commissioner of internal revenue vs. united philippine coconut bank
Labor Law Review |Sobreviñas | August –December 2014|Page 1
Salunga v. CIR Date: September 27, 1967 Ponente: Concepcion, J. Digest Maker: John Michael i!a
SUMMARY: Salunga resigned rom t!e "nion but was advised b# S$% t!at Section & o t!e '%A wit! (%A)L"P*PA+L" ,a closed s!o- agreement. e/isted e/isted Salunga revoed revoed !is resignation in order to ee- !is ob but t!e "nion did not allow !is members!i- to be reinstated3 !ence !is termination rom !is ob w!ic! was regretull# made b# S$% !e 'ourt !eld or Salunga3 stating t!at t!e "nion was guilt# o "LP as unions unions are are not entitl entitled ed to arbitr arbitrari aril# l# e/clu e/clude de 5uali6 5uali6ed ed a--licants a--licants or members!i members!i-3 -3 and a closed*s!o closed*s!o- -rovision -rovision would not usti# t!e em-lo#er in disc!arging3 or a union in insisting insisting u-on t!e disc!arge disc!arge o3 an em-lo#ee em-lo#ee w!om t!e union t!us reuses to admit to members!i-3 wit!out an# reasonable ground t!ereor t!ereor DOCTRINE: "LP * a closed*s!o- -rovision would not usti# t!e em-lo#er in disc!arging3 or a union in insisting u-on t!e disc!arge o3 an em-lo# em-lo#ee ee w!om w!om t!e union t!us reuse reuses s to admit admit to members!i-3 wit!out an# reasonable ground t!ereor t!ereor FACTS: 7(89: taen and derived rom earlier Labor 2 digests rom last #ear;s -ool<
San $iguel %rewer# %rewer# ,S$%. entered entered into a '%A wit! t!e (ational (ational %rewer# %rewer# and Allied )ndustries Labor "nion o t!e P!ili--ines P!ili--ines ,(%A)L"P*PA+L"3 ot!erwise nown as t!e "nion. Section & o t!e '%A ,a 'losed S!o- Agreement. Agreement. reads: =!e com-an# agrees to re5uire as a condition o em-lo#ment o t!ose worers covered b# t!is agreement w!o eit!er are members o t!e "()8( on t!e date o t!e signing o t!is agreement3 or ma# oin t!e "()8( during t!e e>ectivit# o t!is
agreement3 agreement3 t!at t!e# s!all not voluntaril# resign rom t!e "()8( earlier t!an t!irt# ,&0. da#s beore t!e e/-ir# date o t!is agreement as -rovided in Article ?))) !ereo3 -rovided3 !owever3 t!at not!ing !erein contained s!all be construed to re5uire t!e com-an# to enorce an# sanction w!atsoever against an# em-lo#ee or worer w!o ails to retain !is members!i- in t!e "()8( as !ereinbeore stated3 or an# cause ot!er t!an voluntar# resignation or non*-a#ment o regular union dues on t!e -art o said em-lo#ee or worer@
Petitioner +rancisco Salunga was a member o t!e "nion since 1B& 1B& Due to a allin alling g out wit! t!e "nion3 "nion3 !e tender tendered ed !is resignation rom t!e "nion3 w!ic! acce-ted it and transmitted it to t!e 'om-an# wit! a re5uest or t!e immediate im-lementation o said section & S$% inormed Salunga t!at !is aorementioned resignation would result in t!e termination o !is em-lo#ment3 and in view o said section3 Salunga wrote a letter to t!e "nion wit!drawing or revoing !is resignation and advising t!e "nion to contin continue ue deduct deducting ing !is mont! mont!l# l# union union dues dues Ce3 moreov moreover3 er3 urnis!ed a co-# o t!is communication to S$% !e latter3 in turn3 noti6ed t!e "nion o t!e recei-t o said co-# and t!at in view t!ereo3 we s!all not tae an# action on t!is case and s!all consider $r +rancisco Salunga still a member o #our union and continue deducting !is union dues Coweve Cowever3 r3 on Se-tem Se-tember ber E3 1F1 1F133 t!e "nion told S$% S$% t!at t!at Salunga;s members!i- could not be reinstated and insisted on !is se-aration rom t!e service3 conormabl# wit! t!e sti-ulation above*5uoted S$% sent a re-l# clari#ing t!e instructions o t!e "nion "nion to termin terminate ate t!e em-lo# em-lo#men mentt o Salung Salunga a !e "nion "nion reiterated its re5uest or im-lementation o said section &3 or w!ic! reason3 S$% noti6ed Salunga t!at3 in view o said letter and t!e aorem aorement ention ioned ed sectio section3 n3 t!e# t!e# !ave !ave to termin terminate ate !is em-lo#ment3 alt!oug! wit! regret $eanw!ile3 Salunga soug!t t!e intervention o PA+L"Gs (ational President3 'i-riano 'id3 to w!ic! t!e "nion was aHliated3 or a revi review ew o t!e t!e latt latter erGs Gs acti action on PA+L" A+L" gave gave due due cour course se to -etitionerGs re5uest or review review
Labor Law Review |Sobreviñas | August –December 2014|Page 2 8n 8ctober F3 1F13 'id advised Salunga t!at PA+L" !ad ound no ground to review t!e action taen b# t!e "nion and t!at3 on t!e e/-iration o t!e 1B*da# grace granted to !im b# t!e 'om-an#3 t!e decision t!ereo to terminate !is services would tae e>ect Salunga t!en noti6ed t!e PA+L" t!at !e was a--ealing to its su-reme aut!orit# I t!e PA+L" (ational 'onvention I and re5uested t!at action on !is case be deerred until suc! time as t!e 'onvention s!all !ave acted on !is a--eal +urt!ermore3 !e ased S$% to maintain t!e stat"s #"o3 in t!e meantime !is notwit!standing3 at t!e close o t!e business !ours3 on 8ctober 1B3 1F13 Salunga was disc!arged rom t!e em-lo#ment o t!e 'om-an#3 t!roug! its assistant*secretar# and vice*-resident3 !erein res-ondent $iguel (oel Cence3 t!e com-laint in t!e ')R ')R decided in avor o Salunga Deendants ,including S$%. all guilt# o "LP 8rdered "nion to readmit -etitioner as member3 and 'om-an# to reinstate !im wit! bacwages 8( $otion or Reconsideration3 ')R reversed its earlier decision Cence3 t!is a--eal b# t!e -etitioner ISSUES/HELD: 1 J8( t!e "nion is guilt# o "LP YES 2 J8( S$% ,t!e em-lo#er. is guilt# o "LP NO RATIO:
1 )n t!e case o t!e "nion3 it was ound t!at (%A)L"P*PA+L" acted arbitraril# Alt!oug! Salunga !ad resigned rom t!e "nion and t!e latter !ad acce-ted t!e resignation3 Salunga !ad3 soon later I u-on learning t!at !is wit!drawal rom t!e "nion would result in !is se-aration rom t!e 'om-an#3 owing to t!e closed* s!o- -rovision above reerred to I revoed or wit!drawn said resignation3 and t!e "nion reused to consent t!ereto wit!out an# ust cause t!ereor !e "nion !ad not onl# acted arbitraril# in not allowing -etitioner to continue !is members!i- but t!e trial
Kudge also ound said reusal o t!e "nion oHcers to be due to !is critical attitude towards certain measures taen or sanctioned b# t!em !e record is clear t!at3 eeling deected b# t!e inaction o t!e union oHcials on !is grievances and obections to w!at !e believed were illegal disbursements o union unds3 cou-led wit! t!e act t!at !e was later removed rom !is -osition as a union steward wit!out !is nowledge3 as well as t!e act t!at t!e union did not !onor t!e -ower o attorne# e/ecuted in !is avor b# Aleandro $iranda3 a co*worer3 or t!e collection o $irandaGs indebtedness o PF000 to !im3 !e submitted !is letter o resignation rom t!e union on August 1E3 1F1 )ndeed said oHcers tried to usti# t!emselves b# c!aracteriing said criticisms as acts o dislo#alt# to t!e "nion3 w!ic!3 o course3 is not true3 not onl# because t!e criticism assailed3 not t!e "nion3 but certain acts o its oHcers3 and3 indirectl#3 t!e oHcers t!emselves3 but also because t!e constitution and b#*laws o t!e "nion e/-licitl# recognie t!e rig!t o its members to give t!eir views on all transactions made b# t!e "nion As a conse5uence3 t!e resolution a--ealed rom cannot be aHrmed wit!out3 in e>ect3 nulli#ing said rig!t w!ic!3 inde-endentl# o t!e constitution and b#*laws o t!e "nion3 is -art and -arcel o t!e reedom o s-eec! guaranteed in t!e 'onstitution o our Re-ublic3 as a condition sine #"a non to t!e sound growt! and develo-ment o labor organiations and democratic institutions Alt!oug!3 generall#3 a state ma# not com-el ordinar# voluntar# associations to admit t!ereto an# given individual3 because members!i- t!erein ma# be accorded or wit!!eld as a matter o -rivilege3 t!e rule is 5uali6ed in res-ect o labor unions !olding a mono-ol# in t!e su--l# o labor3 eit!er in a given localit#3 or as regards a -articular em-lo#er wit! w!ic! it !as a closed*s!oagreement !e reason is t!at: =M!e closed s!o- and t!e union s!o- cause t!e admission re5uirements o trade union to become afected with the public interest Liewise3 a closed s!o-3 a union s!o-3 or maintenance o members!i- clauses cause the
Labor Law Review |Sobreviñas | August –December 2014|Page & administration o discipline by unions to be afected with the public interest .@
'onse5uentl#3 it is well settled t!at suc! unions are not entitled to arbitraril# e/clude 5uali6ed a--licants or members!i-3 and a closed*s!o- -rovision would not usti# t!e em-lo#er in disc!arging3 or a union in insisting u-on t!e disc!arge o3 an em-lo#ee w!om t!e union t!us reuses to admit to members!i-3 wit!out an# reasonable ground t!ereor (eedless to sa#3 i said unions ma# be com-elled to admit new members3 w!o !ave t!e re5uisite 5uali6cations3 wit! more reason ma# t!e law and t!e courts e/ercise t!e coercive -ower w!en t!e em-lo#ee involved is a long standing union member3 w!o3 owing to -rovocations o union oHcers3 was im-elled to tender !is resignation3 w!ic! !e ort!wit! wit!drew or revoed Surel#3 !e ma#3 at least3 invoe t!e rig!ts o t!ose w!o see admission or t!e 6rst time3 and cannot arbitraril# be denied readmission 2 +or S$%3 !owever3 it was !eld t!at it did not engage in "LP )t was s!own t!at S$% itsel was even reluctant I i not unwilling I to disc!arge t!e -etitioner J!en t!e "nion 6rst inormed S$% o Salunga;s resignation and urged im-lementation o section & o t!e bargaining contract3 S$% advised Salunga o t!e -rovision3 t!ereb# intimating t!at !e !ad to wit!draw !is resignation in order to ee- !is em-lo#ment %esides3 S$% noti6ed t!e "nion t!at it ,S$%. would not tae an# action on t!e case and would consider Salunga still a member o t!e "nion J!en t!e latter3 t!ereater3 insisted on -etitionerGs disc!arge3 S$% still demurred and e/-lained it was not taing sides and t!at its stand was -rom-ted merel# b# !umane considerations3 s-ringing rom t!e belie t!at -etitioner !ad resigned rom t!e "nion wit!out realiing its e>ect u-on !is em-lo#ment And3 as t!e "nion reiterated its demand3 S$% noti6ed -etitioner t!at it !ad no ot!er alternative but to terminate !is em-lo#ment3 and dismissed !im rom t!e service3 alt!oug! wit! regret
"nder t!ese circumstances3 S$% was not unair to t!e -etitioner 8n t!e contrar#3 it did not merel# s!ow a commendable understanding o and s#m-at!# or !is -lig!t )t even tried to !el- !im3 alt!oug! to suc! e/tent onl# as was consistent wit! its obligation to rerain rom interering in -urel# internal a>airs o t!e "nion At t!e same time3 S$% could not sael# in5uire into t!e motives o t!e "nion oHcers3 in reusing to allow Salunga to wit!draw !is resignation )nasmuc! as t!e true motives were not maniest3 wit!out suc! in5uir#3 and Salunga !ad concededl# tendered !is resignation o !is own ree will3 t!e arbitrar# nature o t!e decision o said oHcers was not suc! as to be a--arent and to usti# t!e com-an# in regarding said decision unreasonable "-on t!e ot!er !and3 S$% cannot be blamed or assuming t!e contrar#3 or Salunga !ad a--ealed to t!e (ational 8Hcers o t!e PA+L" and t!e latter !ad sustained t!e "nion S$% was t!ereore usti6ed in -resuming t!at t!e PA+L" !ad in5uired into all relevant circumstances3 including t!e motives o t!e "nion 8Hcers )n 6nding t!e com-an# guilt# o "LP3 t!e trial Kudge elt t!at San $iguel s!ould !ave waited or t!e action o t!e national convention beore issuing t!e notice o dismissal Cowever3 t!e record does not s!ow t!at -etitioner was -reudiced b# San $iguel;s ailure to maintain t!e stat"s #"o3 ater t!e "nion !ad been sustained b# said oHcers )n act3 -etitioner did not even tr# to establis! t!at !e !ad submitted to San $iguel I as !e !as not introduced in t!e lower court I satisactor# -roo t!at an a--eal !ad reall# been taen b# !im to t!e aorementioned 'onvention
