United Pepsi Cola v. Laguesma

United Pepsi Cola v. Laguesma (1998) Petitioners: Petitioners: UNITED PEPI!C"L# UPE$%I"$& UNI"N (UPU) Respondents: Respondents: '"N. '"N. IEN IEN%E %ENI NID" D" E. L#U L#UE E*# *# and and PEP PEPI! I!C" C"L# L# P$"D P$"DUC UCT T++ P'ILIPPINE+ INC. Ponente: Ponente: *END",# Topic: Topic: E-luded Emplo/ees0o23e2s 4 *anage2ial Emplo/ees Emplo/ees FACTS: FACTS: T5e UPU is a union o6 supe2viso2/ emplo/ees. "n *a25 7+ 199+ t5e union 6iled a petition 6o2 e2ti6iation eletion on e5al6 o6  t5e 2oute manage2s at Pepsi!Cola P2oduts P5ilippines+ P5ilippines+ In. Its petition ;as denied / t5e med!a2ite2 and+ on appeal+ / t5e e2eta2/ o6 Lao2  and Emplo/ment ("LE)+ on t5e g2ound t5at t5e 2oute manage2s a2e manage2ial emplo/ees and+ t5e2e6o2e+ ineligile 6o2 union meme2s5ip unde2 t5e 6i2st sentene o6 #2t. 7< (now ( now 255) 255) o6 t5e Lao2 Code+ ;5i5 p2ovides: Ineligibility of managerial employees to join any labor organization; right of  o supervisory employees. employees. 4 *anage2ial emplo/ees a2e not eligile to =oin+ assist o2 6o2m an/ lao2 o2gani>ation. upe2viso2/ emplo/ees s5all not e elig eligi ile le 6o2 6o2 mem meme2 e2s5 s5ip ip in a lao lao22 o2ga o2gani ni>a >ati tion on o6 t5e t5e 2an3 2an3!a !and nd!6i !6ile le emplo/ees ut ma/ =oin+ assist o2 6o2m sepa2ate lao2 o2gani>ations o6 t5ei2  o;n. ?T5e 2an3 and 6ile union and t5e supe2viso2s@ union ope2ating ;it5in t5e same estalis5ment ma/ =oin t5e same 6ede2ation o2 national union .] T5e Union 2oug5t t5is suit 5allenging t5e validit/ o6 t5e o2de2s o6 "LE. Its petition ;as dismissed / t5e T5i2d Division 6o2 la3 o6 s5o;ing t5at "LE ommitted g2ave ause o6 dis2etion. T5e Union 6iled a motion 6o2 2eonside2ation+ p2essing 6o2 2esolution its ontention t5at t5at t5e t5e 6i2s 6i2stt sent senten ene e o6 #2t. 2t. 7< 7< o6 t5e t5e Lao Lao22 Code Code++ so 6a2 6a2 as it del dela2 a2es es manage2ial emplo/ees to e ineligile to 6o2m+ assist o2 =oin unions+ ont2avenes  #2t. III+ etion etion 8+ o6 t5e Constitution: Constitution: T5e 2ig5t o6 t5e people+ inluding t5ose emplo/ed in t5e puli and p2ivate o seto2 seto2s+ s+ to 6o2m 6o2m union unions+ s+ assoi assoiati ation ons+ s+ o2 soiet soietie ies s 6o2 t5e pu2po pu2poses ses not ont2a2/ to la; s5all not e a2idged. T5us+ t5e petition ;as 2e6e22ed to t5e Cou2t en an. ISSUES: oN t5e 2oute manage2s at Pepsi!Cola a2e manage2ial emplo/ees &E. Ai2st+ t5e Cou2t distinguis5ed et;een t5e lasses o6 manage2s in an o o2gani>ation. Citing t5e des2iption 62om tone2 B an3el+ *anagement 11 (198)+ a distintion e-ist et;een t5ose ;5o 5ave t5e aut5o2it/ to devise+ implement and ont2ol st2ategi and ope2ational poliies (top and middle manage2s) and t5ose ;5ose tas3 is simpl/ to ensu2e t5at su5 polies a2e

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a22ied a22ied out / t5e 2an3!and!6 2an3!and!6ile ile emplo/ees emplo/ees o6 an o2gani>a o2gani>ation tion (6i2st!level (6i2st!level manage manage2s0s 2s0sup upe2v e2viso iso2s) 2s).. 5at 5at disti distingu nguis5 is5es es t5em t5em 62om 62om t5e t5e 2an3!a 2an3!and nd 6ile 6ile emplo/ees is t5at t5e/ at in t5e inte2est o6 t5e emplo/e2 in supe2vising su5 2an3!and!6ile emplo/ees. Managerial eplo!ees eplo!ees a! t"ere#ore $e said to #all #all into into two two disti istinc nctt cate catego gori ries es:: t"e t"e ana anage gers rs per se and t"e t"e s%per&isors. Re: proced%ral iss%e  iss%e  4 Citi Citing ng Nasipit Lumber Co. v. NLRC + t5e Union a2gues t5at t5e t;o p2evious dete2minations made / t5e "LE (5olding t5at 2oute manage2s ;e2e manage2ial emplo/ees) do not 5ave t5e e66et o6  res judicata in judicata in t5is ase+ eause lao2 2elations p2oeedings a2e non! litig litigiou ious s and summa summa2/ 2/ in natu2 natu2e e ;it5o ;it5out ut 2ega2d 2ega2d to legal legal te5ni te5nial aliti ities. es. Nasipit Lumber Co. Co . involved a lea2ane to dismiss an emplo/ee issued / t5e t5e Depa Depa2t 2tme ment nt o6 Lao Lao22. T5e T5e Fues Fuesti tion on ;as ;as ;5et ;5et5e 5e22 in a sus suseF eFue uent nt p2oeeding 6o2 illegal dismissal+ t5e lea2ane ;as res judicata. judicata. In 5olding it ;as not+ t5is Cou2t made it lea2 t5at it ;as 2e6e22ing to lao2 2elations p2o p2oee eedin dings o6 a non!a on!ad dve2s ve2sa a2/ 5a2 5a2a ate te2. ut t5e t5e dot dot2i 2ine ne o6 res  judicata e2tainl/  judicata e2tainl/ applies to adve2sa2/ administ2ative p2oeedings. #s ea2l/ as 19G 19G++ in Brillantes v. Castro+ Castro+ t5e Cou2t sustained t5e dismissal o6 an ation / a t2ial ou2t on t5e asis o6 a p2io2 administ2ative dete2mination o6  t5e same ase / t5e age #dminist2ation e2vie+ appl/ing t5e p2iniple o6 res judicata. judicata. --- #t t5e ve2/ least+ t5e p2iniple o6 6inalit/ o6 administ2ative dete dete2m 2min inat atio ion n omp ompel els s 2esp 2espe ett 6o2 6o2 t5e t5e 6ind 6indin ing g o6 t5e t5e "LE "LE t5at t5at 2out 2oute e manage2s a2e manage2ial emplo/ees as de6ined / la; in t5e asene o6  an/t5ing to s5o; t5at su5 dete2mination is ;it5out sustantial evidene to suppo2t it. 'n t"e erits( t"e Co%rt #o%nd t"at t"e )o$ e&al%ation ade $! t"e Secr Secret etar ar! ! o# *a$o *a$orr is s%pp s%ppor orte ted d $! s%$s s%$sta tant ntia iall e&id e&iden ence ce.. Unli3e supe2viso2s ;5o asiall/ me2el/ di2et ope2ating emplo/ees in line ;it5 set tas3s assigned to t5em+ 2oute manage2s a2e 2esponsile 6o2 t5e suess o6  t5e t5e omp ompan an/H /Hs s main main line line o6 usi usine ness ss t52o t52oug ug5 5 mana manage geme ment nt o6 t5ei t5ei2  2  2esp 2espe eti tive ve sale sales s team teams. s. u5 u5 mana manage geme ment nt nee neess ssa2 a2il il/ / invo involv lves es t5e t5e planning+ di2etion+ ope2ation and evaluation o6 t5ei2 individual teams and a2eas ;5i5 t5e ;o23 o6 supe2viso2s does not entail. T5e 2oute manage2s annot t5us possil/ e lassi6ied as me2e supe2viso2s eause t5ei2 ;o23 does does not not onl/ onl/ invo involv lve+ e+ ut ut goes goes 6a2 6a2 e/o e/ond nd++ t5e t5e simp simple le di2e di2et tio ion n o2  supe2vision o6 ope2ating emplo/ees to aomplis5 o=etives set / t5ose aove t5em. T5e/ a2e not me2e 6untiona2ies ;it5 simple ove2sig5t 6untions ut usiness administ2ato2s in t5ei2 o;n 2ig5t.  #2tile 717(m) +now 2,-+ sa/s 2,-+ sa/s t5at supe2viso2/ emplo/ees a2e t5ose ;5o+ in t5e inte2est o6 t5e emplo/e2+ emplo/e2+ e66etivel/ 2eommend su5 manage2ial ations i6 t5e e-e2ise o6 su5 aut5o2it/ is not me2el/ 2outina2/ o2 le2ial in natu2e natu2e ut 2eFui 2eFui2es 2es t5e use o6 indepe independe ndent nt =udgm =udgmen ent. t. T5us+ T5us+ t5ei2 t5ei2 onl/ onl/ po;e2 is to 2eommend. Ce2tainl/+ t5e 2oute manage2s in t5is ase mo2e t5an t5an me2e me2el/ l/ 2eo 2eomm mmen end d e66e e66et tiv ive e mana manage geme ment nt ati ation on.. T5e/ T5e/ pe26 pe26o2 o2m m ope2at ope2atio ional nal++ 5uman 5uman 2esou2 2esou2e+ e+ 6inan 6inanial ial and ma23et ma23eting ing 6unti 6untions ons 6o2 6o2 t5e

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ompan/+ all o6 ;5i5 involve t5e la/ing do;n o6 ope2ating poliies 6o2  t5emselves and t5ei2 teams. Ao2 e-ample+ ;it5 2espet to ma23eting+ 2oute manage2s+ in ao2dane ;it5 .1.1.1 to .1.1.9 o6 t5e $oute *anage2s o Des2iption+ a2e 5a2ged+ among ot5e2 t5ings+ ;it5 e-panding t5e deale2s5ip ase o6 t5ei2 2espetive sales a2eas+ maintaining t5e good;ill o6 u22ent deale2s+ and dist2iuting t5e ompan/Hs va2ious p2omotional items as t5e/ see 6it. It is di66iult to see 5o; supe2viso2s an e given su5 2esponsiilit/ ;5en t5is involves not =ust t5e 2outine supe2vision o6 ope2ating emplo/ees ut t5e p2otetion and e-pansion o6 t5e ompan/Hs usiness vis!a!vis its ompetito2s. o 5ile 2oute manage2s do not appea2 to 5ave t5e po;e2 to 5i2e and 6i2e people (t5e evidene s5o;s t5at t5e/ onl/ 2eommended o2 endo2sed t5e ta3ing o6 disiplina2/ ation against e2tain emplo/ees)+ t5is is eause t5is is a 6untion o6 t5e 'uman $esou2es o2 Pe2sonnel Depa2tment o6 t5e ompan/. #nd neit5e2 s5ould it e p2esumed t5at =ust eause t5e/ a2e given set en5ma23s to ose2ve+ t5e/ a2e ipso 6ato supe2viso2s. #deFuate ont ont2o 2oll met5 met5od ods s (as (as emo emodi died ed in su5 su5 on onep epts ts as *an *anag agem emen entt / "=e "=et tiv ives es ?*" ?*"J J and and pe2 pe26o 6o2m 2man ane e app2 app2ai aisa sals ls) ) ;5i5 5i5 2eFu 2eFui2 i2e e a delineation o6 t5e 6untions and 2esponsiilities o6 manage2s / means o6  2ead/ 2e6e2ene a2ds as 5e2e+ 5ave long een 2eogni>ed in management as e66etive tools 6o2 3eeping usinesses ompetitive. oN oN t5e 6i2st 6i2st senten sentene e o6 #2t. 7< o6 t5e Lao2 Lao2 Code+ Code+ p2o5i p2o5iit iting ing manage manage2ia 2iall empl emplo/ o/ee ees s 62om 62om 6o2m 6o2min ing+ g+ assi assist stin ing g o2 =oin =oinin ing g an/ an/ lao lao22 o2ga o2gani ni>a >ati tion on++ is unonstitutional unonstitutional in lig5t o6 #2t. III+ e. 8 o6 t5e Constitution Constitution o N"+ it is not  unonstitutional. o T5e Cou2t 2o3e do;n t5is issue into t52ee Fuestions. First: First: oN manage2ial emplo/ees 5ave a 2ig5t o6 sel6!o2gani>ation p2io2 to t5e Lao2 Code o &E+ &E+ ;it5 ;it5 2esp 2espe ett to supe supe2v 2vis iso2 o2s. s. T5e T5e Indu Indust st2i 2ial al Pea Peae e #t ($# ($# 8) 8) de6ined: (3) upe2viso2 means an/ pe2son 5aving aut5o2it/ in t5e inte2est o6  

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an emplo/e2 emplo/e2++ to 5i2e+ 5i2e+ t2ans6e2 t2ans6e2++ suspend+ suspend+ la/!o66 la/!o66++ 2eall+ 2eall+ dis5a2ge+ dis5a2ge+ assign+ 2eommend+ o2 disipline ot5e2 emplo/ees+ o2 2esponsil/ to di2e di2et t t5em t5em++ and and to ad=u ad=ust st t5ei t5ei22 g2ie g2ieva van nes es++ o2 e66e e66et tiv ivel el/ / to 2eom 2eommen mend d su5 su5 ats+ ats+ i6+ i6+ in onne onnetio tion n ;it5 ;it5 t5e 6o2ego 6o2egoing ing++ t5e e-e2ise o6 su5 aut5o2it/ is not o6 a me2el/ 2outina2/ o2 le2ial natu2e ut 2eFui2es t5e use o6 independent independent =udgment. T5e 2ig5t o6 supe2viso2s to 6o2m t5ei2 o;n o2gani>ations ;as a66i2med: EC. K. Emplo/eesH $ig5t to el6!"2gani>ation. !! Emplo/ees s5all 

5ave t5e 2ig5t to sel6!o2gani>ation and to 6o2m+ =oin o2 assist lao2  o2gani o2gani>at >atio ions ns o6 t5ei2 t5ei2 o;n o;n 5oosi 5oosing ng 6o2 6o2 t5e pu2pos pu2pose e o6 olle olleti tive ve a2gai a2gainin ning g t52oug t52oug5 5 2ep2es 2ep2esen entat tative ives s o6 t5ei2 t5ei2 o;n 5oosi 5oosing ng and and to enga engage ge in on one2 e2te ted d ati ativi viti ties es 6o2 6o2 t5e t5e pu2p pu2pos ose e o6 oll olle eti tive ve a2g a2gai aini ning ng and and ot5e2 t5e2 mutu mutual al aid aid and and p2ot p2ote eti tion on.. Indi Indivi vidu dual als s emplo/ed as supe2viso2s s5all not e eligile 6o2 meme2s5ip in a

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lao2 lao2 o2gani>a o2gani>ation tion o6 emplo/ee emplo/ees s unde2 unde2 t5ei2 t5ei2 supe2visi supe2vision on ut ma/ 6o2m sepa2ate o2gani>ations o6 t5ei2 o;n.  #lt5oug5 it 5ad a de6inition o6 t5e te2m supe2viso2+ supe2viso2+ t5e Indust2ial Peae #t #t did not de6ine t5e te2m manage2. ut+ using t5e ommonl/!unde2stood onept o6 manage2+ as aove stated+ it is appa2ent t5at t5e la; used t5e te2m te2m supe2 supe2vis viso2s o2s to 2e6e2 2e6e2 to t5e su!g2 su!g2oup oup o6 manag manage2i e2ial al emplo/ emplo/ees ees 3no; 3no;n n as 62ont 62ont!l !lin ine e mana manage ge2s 2s.. T5e T5e ot5e ot5e22 su! su!g2 g2ou oup p o6 man manag age2i e2ial al emplo/ees+ 3no;n as manage2s pe2 se+ ;as not ove2ed. 'o;eve2+ in Calte- Ailipino *anage2s and upe2viso2s #ssoiation v. Cou2t o6 Indust2ial $elations+ t5e 2ig5t o6 all manage2ial emplo/ees to sel6!o2gani>ation ;as up5eld as a gene2al p2oposition. --- #tuall/+ t5e ase involved 62ont!line manage2s o2 supe2viso2s onl/+ as t5e plantilla o6 emplo/ees+ Fuoted in t5e main main opinio opinion: n: Ainal Ainall/ l/++ also also deeme deemed d inlu inluded ded a2e all ot5e2 ot5e2 emplo/ emplo/ees ees e-luded 62om t5e 2an3 and 6ile unions ut not lassi6ied as manage2ial o2  ot5e2;ise e-ludale / la; o2 appliale =udiial p2eedents. p2eedents. T5e *a$or *a$or Code+ Code+ p2omul p2omulgat gated ed in 19< 19< unde2 unde2 ma2tia ma2tiall la;+ la;+ d2oppe d2opped d t5e dist distin int tio ion n et; et;ee een n t5e t5e 6i2s 6i2stt and and seo seond nd su! su!g2 g2ou oups ps o6 mana manage ge2i 2ial al emplo/ee emplo/ees. s. Instead o# treating t"e ters /s%per&isor/ and /anager/ separatel!( separatel!( t"e law l%ped t"e toget"er and called t"e /anagerial eplo!ees(/ as eplo!ees(/ as 6ollo;s:  #$T.  #$T. 717. De6initions . . . . (3) *anage2ial Emplo/ee is one ;5o is 

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vest vested ed ;it5 it5 po;e po;e2s 2s o2 p2e2 p2e2og ogat ativ ives es to la/ la/ do;n do;n and and e-e e-eut ute e management poliies and0o2 to 5i2e+ t2ans6e2+ t2ans6e2+ suspend+ la/ o66+ 2eall+ dis dis5a 5a2g 2ge+ e+ assi assign gn o2 dis disip iplline ine empl emplo/ o/ee ees+ s+ o2 to e66e 66eti tive vel/ l/ 2eommend su5 manage2ial ations. #ll emplo/ees not 6alling ;it5in t5is de6inition a2e onside2ed 2an3 and 6ile emplo/ees 6o2 pu2poses o6  t5is oo3. o T5e de6in de6initi ition on s5o;s s5o;s t5at t5at it is atual atuall/ l/ a omin ominati ation on o6 t5e ommon ommonl/ l/ und unde2st e2sto ood de6i e6initi nitio ons o6 ot5 ot5 g2ou 2oups o6 manage nage2i 2ia al emplo mplo/ /ees+ ees+ g2ammatiall/ =oined / t5e p52ase and0o2. T"is general de#inition was per"aps legall! necessar! at t"at tie #or two reasons. Ai2st+ t"e ,-01 Code Code denied denied s%per& s%per&iso isors rs t"eir t"eir rig"t rig"t to sel#o sel#orga rgani3 ni3e e as t5e2eto6o2 t5e2eto6o2e e gua2an gua2antee teed d to t5em t5em / t5e Indust Indust2ia 2iall Peae Peae #t. eon eond+ d+ it   stood t"e dict dict% % in t"e t"e Calte Calte4 4 case case on its "ead "ead $! pr pro" o"i$ i$it itin ing g all all t!pe t!pes s o#  anage anagers rs #ro #ro #orin #oring g %nions %nions.. T5e e-pli e-pliit it gene2a gene2all p2o5i p2o5iit itio ion n ;as ;as ontained in t5e t5en #2t. 7e o2 (7) simpl/ t5e 2esto2ation o6 t5e 2ig5t o6 supe2viso2/ emplo/ees to o2gani>e o impl/ impl/ to 2esto2e 2esto2e t5e 2ig5t 2ig5t o6 supe2viso2/ supe2viso2/ emplo/ees emplo/ees to o2gani>e. o2gani>e. Ao2 even t5oug5 5e spo3e o6 t5e need to aolis5 #2t. 7e 5ad

een ta3en a;a/ / #2t. 7ing t5e 2ig5t o6 all manage2ial emplo/ees emplo/ees to o2gani>e+ despite t5e 6at t5at t5e Indust2ial Peae  #t did not e-p2essl/ p2ovide 6o2 t5e 2ig5t o6 top and middle manage2s to o2gani>e. I6 Le2um ;as a;a2e o6 t5e Calte- ditum+ t5en 5is insistene on t5e use o6 t5e te2m supe2viso2/ emplo/ees ould onl/ mean t5at 5e ;as e-luding ot5e2 manage2ial emplo/ees 62om 5is p2oposal. I6+ on t5e ot5e2  5and+ 5e ;as not a;a2e o6 t5e Calte- statement sustaining t5e 2ig5t to o2gani>e to top and middle manage2s+ t5en t5e mo2e s5ould 5is 2epeated use o6 t5e te2m supe2viso2/ emplo/ees e ta3en at 6ae value+ as it 5ad een de6ined in t5e t5en Indust2ial Peae #t. o  #t all events+ t5at t5e 2est o6 t5e Commissione2s unde2stood 5is p2oposal to 2e6e2 solel/ to supe2viso2s and not to ot5e2 manage2ial emplo/ees is lea2  62om t5e 6ollo;ing aount o6 Commissione2 oaFuin . e2nas+ ;5o ;2ites: In p2esenting t5e modi6iation on t5e 19K and 19K te-ts+ Commissione2  Eulogio $. Le2um e-plained t5at t5e modi6iation inluded t52ee atego2ies o6 ;o23e2s: (1) gove2nment emplo/ees+ (7) supe2viso2/ emplo/ees+ and (K) seu seu2i 2it/ t/ gua2 gua2ds ds.. Le2u Le2um m made made o6 2eo 2eo2d 2d t5e t5e e-pl e-pli iit it inte intent nt to 2epe 2epeal al p2ovisions o6 P.D. <<7+ t5e Lao2 Code. T5e p2ovisions 2e6e22ed to ;e2e:  #$T.  #$T. 7<. eu2it/ gua2ds and ot5e2 pe2sonnel emplo/ed 6o2 t5e p2otetion and seu2it/ o6 t5e pe2son+ p2ope2ties and p2emises o6 t5e emplo mplo/ /e2s e2s s5a s5all not e eli eligi gile 6o2 6o2 meme2s5 e2s5ip ip in a lao ao2  o2gani>ation.  #$T.  #$T. 7ation. T"ird +t"e ain %estion: %estion: oN t5e p2esent an against manage2ial emplo/ees is unonstitutional o N"+ it is not not unons unonstit tituti utiona onal. l. #2til #2tile e 7< +now 255  255  is t5e 2esult o6 t5e amendment o6 t5e Lao2 Code in 1989 / $.#. No. G1+ ot5e2;ise 3no;n as t5e 'e22e2a!%eloso 'e22e2a!%eloso La;. La;. Unli3e t5e Indust2ial Peae #t o2 t5e p2ovisions o6 t5e Lao2 Code ;5i5 it supe2seded+ $.#. No. G1 p2ovides sepa2ate de6ini de6initio tions ns o6 t5e te2ms te2ms mana manage2 ge2ial ial and supe2 supe2vis viso2/ o2/ emplo emplo/e /ees+ es+ as 6ollo;s: o  #$T.  #$T. 717 +now 2,-. 2,-. efinitions. efinitions. . . .(m) manage2ial emplo/ee is one ;5o is vested ;it5 po;e2s o2 p2e2ogatives to la/ do;n and e-eute management poliies and0o2 to 5i2e t2ans6e2+ suspend+ la/ o66+ 2eall+ dis5a2ge+ assign o2  disipline emplo/ees. upe2viso2/ emplo/ees a2e t5ose ;5o+ in t5e inte2est o6 t5e emplo/ emplo/e2 e2++ e66e e66etiv tivel/ el/ 2eomm 2eommend end su5 su5 manag manage2i e2ial al atio ations ns i6 t5e e-e2ise o6 su5 aut5o2it/ is not me2el/ 2outina2/ o2 le2ial in natu2e ut 

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2eFui2es t5e use o6 independent =udgment. #ll emplo/ees not 6alling ;it5in an/ o6 t5e aove aove de6initi de6initions ons a2e onside2e onside2ed d 2an3!and 2an3!and!6ile !6ile emplo/ees emplo/ees 6o2  pu2poses o6 t5is oo3.  #lt5oug5 t5e de6inition de6inition o6 supe2viso2/ emplo/ees seems to 5ave een undul/ undul/ 2est2ited 2est2ited to t5e last p52ase p52ase o6 t5e de6inition de6inition in t5e Indust2ial Indust2ial Peae Peae  #t+ t5e legal signi6iane given to t5e p52ase e66etivel/ 2eommends 2emains t5e same. In 6at+ t5e distintion et;een top and middle manage2s+ ;5o set manageme management nt poli/ poli/++ and 62ont!line 62ont!line supe2viso supe2viso2s+ 2s+ ;5o a2e me2el/ me2el/ 2esponsile 6o2 ensu2ing t5at su5 poliies a2e a22ied out / t5e 2an3 and 6ile+ is a2tiulated in t5e p2esent de6inition. 5en 2ead in 2elation to t5is de6inition in #2t. 717(m)+ it ;ill e seen t5at #2t. 7< 6ait56ull/ a22ies out t5e inte intent nt o6 t5e t5e Cons Consti titu tuti tion onal al Comm Commis issi sion on in 62am 62amin ing g #2t. 2t. III+ III+ 8 o6 t5e t5e 6undamental la;. No2 is t5e gua2antee o6 o2gani>ational 2ig5t in #2t. III+ 8 in62inged / a an against manage2ial emplo/ees 6o2ming a union. T5e 2ig5t gua2anteed in #2t. III+ 8 is su=et to t5e ondition t5at its e-e2ise s5ould e 6o2 pu2poses not ont ont2a 2a2/ 2/ to la; la;. In t5e t5e ase ase o6 #2t. #2t. 7<+ 7<+ t5e2 t5e2e e is a 2ati 2ation onal al asi asis s 6o2  6o2  p2o p2o5ii 5iiti tin ng mana anage2i ge2ia al emp emplo/ lo/ees ees 62om 2om 6o2m 6o2miing o2 =oinin ning lao ao2  o2gani>ations. #s ustie Davide+ 2.+ 2.+ 5imsel6 a onstitutional ommissione2+ ommissione2+ said in 5is ponenia in !hilips Industrial evelopment" Inc. v. NLRC : NLRC : In Bulletin !ublishing Co." Inc. v. #on. $ugusto %anchez + %anchez + t5is Cou2t 

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elao2ated on t5is 2ationale+ t5us: . . . T5e 2ationale 6o2 t5is in5iition 5as een een stated stated to e+ eau eause se i6 t5ese t5ese manage manage2ia 2iall emplo/ emplo/ees ees ;ould elong to o2 e a66iliated ;it5 a Union+ t5e latte2 mig5t not e assu2ed o6 t5ei2 lo/alt/ to t5e Union in vie; o6 evident on6lit o6  inte2ests. T5e Union an also eome ompan/!dominated ;it5 t5e p2esene o6 manage2ial emplo/ees in Union meme2s5ip. To e su2e su2e++ t5e t5e Cou2 Cou2tt in !hilips Industrial   ;as dealing ;it5 t5e 2ig5t o6  on6idential emplo/ees to o2gani>e. ut t5e same 2eason 6o2 den/ing t5em t5e 2ig5t to o2gani>e =usti6ies even mo2e t5e an on manage2ial emplo/ees 62om 6o2ming unions.

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In t5e United tates+ as ustie PunoHs sepa2ate opinion notes+ supe2viso2s 5ave no 2ig5t to 6o2m unions. T5e/ a2e e-luded 62om t5e de6inition o6 t5e te2m emplo/ee in etion 7(K) o6 t5e Lao2!*anagement $elations #t o6 19<. T5e 2ationale 6o2  e-luding supe2viso2s in t5e United tates is given in t5e $epo2t o6 t5e Committee on Eduation and Lao2 o6 t5e U.. 'ouse o6 $ep2esentatives+ Fuoted in t5e U up2eme Cou2t ase o6  NLRB  NLRB v. Bell $erospace Co. (19<): Co.  (19<): upe2viso2s a2e management people. T5e/ 5ave distinguis5ed t5emselves o in t5ei t5ei22 ;o23 ;o23.. T5e/ T5e/ 5ave 5ave demo demons nst2 t2a ated ted t5ei t5ei22 ail ailit it/ / to ta3e ta3e a2e a2e o6  t5emselves ;it5out depending upon t5e p2essu2e o6 olletive ation. No one 6o2ed t5em to eome supe2viso2s. T5e/ aandoned t5e olletive seu seu2i 2it/ t/ o6 t5e t5e 2an3 2an3 and and 6ile 6ile volu volunt nta2 a2il il/ /+ ea eaus use e t5e/ t5e/ eli eliev eved ed t5e t5e oppo2tunities t5us opened to t5em to e mo2e valuale to t5em t5an su5

seu2it/. It seems ;2ong+ and it is ;2ong+ to su=et people o6 t5is 3ind+ ;5o 5ave demonst2ated t5ei2 initiative+ t5ei2 amition and t5ei2 ailit/ to get a5ead+ to t5e leveling p2oesses o6 senio2it/+ uni6o2mit/ and standa2di>ation t5at t5at t5e up2e up2eme me Cou2t Cou2t 2eog 2eogni> ni>es es as eing eing 6undam 6undament ental al p2in p2inipl iples es o6  unionism. (.I. Case Co. v. National Lao2 $elations oa2d+ K71 U.. KK7+ 88 L.Ed. G7+ G< . Ct. G (199<). It is ;2ong 6o2 t5e 6o2emen+ 6o2 it disou2ages t5e t5ings in t5em t5at made t5em 6o2emen in t5e 6i2st plae. Ao2 t5e same 2eason+ t5at it disou2ages t5ose est Fuali6ied to get a5ead+ it is ;2ong 6o2 indust2/+ and pa2tiula2l/ 6o2 t5e 6utu2e st2engt5 and p2odutivit/ o6 ou2 ount2/ 7A8I7E( 9( conc%rring and dissenting: •

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I onu2 ;it5 t5e ma=o2it/ t5at t5e 2oute manage2s o6 p2ivate 2espondent Pepsi! Cola P2oduts P5ilippines+ In. a2e manage2ial emplo/ees. 'o;eve2+ I 2espet6ull/ sumit t5at ont2a2/ to t5e ma=o2it/Hs 5olding+ #2tile 7< o6 t5e Lao2 Code is unonstitutional+ unonstitutional+ as it a2idges etion 8+ #2tile III o6 t5e Constitution. --It is t5en induital/ lea2 62om t5e 6o2egoing t5at t5e intent o6 t5e Constitutional Commi Commissi ssion on ;as ;as to a2og a2ogate ate t5e la; p2o5i p2o5iiti iting ng manag manage2i e2ial al emplo/ emplo/ees ees 62om 62om  =oining+ assisting+ o2 6o2ming unions o2 lao2 o2gani>ations. o2gani>ations. In t5is 2ega2d+ t5e2e is asolutel/ no need to deip5e2 t5e intent o6 t5e 62ame2s o6 t5e 198 Constitution vis!a!vis #2tile 7< (o2iginall/ 7ations+ t5e 6i2st sentene t5en o6  t5e p2esent #2tile 7< o6 t5e Lao2 Code must e st2u3 do;n as unonstitutional. 'o;eve2+ due to an ovious on6lit o6 inte2est ! eing losel/ identi6ied ;it5 t5e inte2ests o6 management in vie; o6 t5e in5e2ent natu2e o6 t5ei2 6untions+ duties and 2esponsiilities !! manage2ial emplo/ees ma/ onl/ e eligile to =oin+ assist o2 6o2m unions o2 lao2 o2gani>ations o6 t5ei2 o;n 2an3+ and not t5ose o6 t5e supe2viso2/ emplo/ees no2 t5e 2an3!and!6ile emplo/ees. In t5e instant ase+ t5e petitione2Hs name !! United Pepsi!Cola upe2viso2/ Union (UPU) !! induital/ attests t5at it is a union o6 supe2viso2/ emplo/ees. In lig5t o6  t5e ea2lie2 disussion+ t5e 2oute manage2s ;5o a2e manage2ial emplo/ees+ annot  =oin o2 assist UPU.

P%no( 9.( separate conc%rring:

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it5 due 2espet+ I do not sus2ie to t5e vie; t5at setion 8+ #2tile III o6 t5e Constitution a2ogated #2tile 7< o6 t5e Lao2 Code. # te-tual anal/sis o6 setion 8+ #2tile III o6 t5e Constitution ;ill not =usti6/ t5is onlusion. it5 due 2espet+ t5e 2eso2t / *2. ustie Davide to t5e delie2ations o6 t5e Constitutional Commission does not su66ie. It is gene2all/ 2eogni>ed t5at deates and ot5e2 p2oeedings in a onstitutional onvention a2e o6 limited value and a2e an unsa6e guide to t5e intent o6 t5e people. Notal/+ 5o;eve2+ #2tile 7< does not asolutel/ disFuali6/ manage2ial emplo/ees 62om e-e2ising t5ei2 2ig5t o6 assoiation. 5at it p2o5iits is me2el/ t5e 2ig5t to =oin lao2 o2gani>ations. *anage2ial emplo/ees ma/ 6o2m assoiations o2 o2gani>ations so long as t5e/ a2e not lao2 o2gani>ations. T5e 62eedom o6 assoiation gua2anteed unde2 t5e Constitution 2emains and 5as not een totall/ a2ogated / #2tile 7<. To dela2e #2tile 7< o6 t5e Lao2 Code unonstitutional uts deep into ou2 e-isting indust indust2ia 2iall li6e li6e and ;ill ;ill open open t5e 6lood 6loodgat gates es to union unioni>a i>atio tion n at all level levels s o6 t5e indust2ial 5ie2a25/. u5 a 2uling ;ill ;2ea3 5avo on t5e e-isting set!up et;een management and lao2. I6 all manage2ial emplo/ees ;ill e allo;ed to unioni>e+ t5en all ;5o a2e in t5e pa/2oll o6 t5e ompan/+ sta2ting 62om t5e p2esident+ vie! p2esident+ gene2al manage2s and eve2/one+ ;it5 t5e e-eption o6 t5e di2eto2s+ ma/ go on st2i3e o2 pi3et t5e emplo/e2. Compan/ o66ie2s ;ill =oin 6o2es ;it5 t5e supe2viso2s and 2an3!and!6ile. *anagement and lao2 ;ill eome a solid p5alan;it5 a2gaining 2ig5ts t5at ould e en6o2ed against t5e o;ne2 o6 t5e ompan/. T5e asi opposing 6o2es in t5e indust2/ ;ill not e management and lao2 ut t5e ope2ating g2oup on t5e one 5and and t5e sto35olde2 and ond5olde2 g2oup on t5e ot5e2. T5e indust2ial p2olem de6ined in t5e Lao2 Code omes do;n to a ontest ove2 a 6ai2 division o6 t5e g2oss 2eeipts o6 indust2/ et;een t5ese t;o g2oups. #nd t5is ;ill e2tainl/ 2ing ill!e66ets on ou2 eonom/. T5e 62ame2s o6 t5e Constitution ould not 5ave intended a ma=o2 up5eaval o6 ou2  lao2 lao2 and and soio soio!e !eono onomi mi  s/stem s/stems. s. T5ei2 T5ei2 inten intentt annot annot e made made to ove22i ove22ide de sustantial poli/ onside2ations and 2eate asu2d o2 impossile situations. situations.

8it%g( 9.( separate +conc%rring and dissenting  to w"o ;ap%nan( Pangani$an and <%is%$ing( 99. conc%r  •

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T5e manage2ial level is t5e sou2e+ as ;ell as p2es2ies t5e ompliane+ o6 2oad mandates ;5i5+ in t5e 6ield o6 lao2 2elations+ a2e to e a22ied out t52oug5 t5e ne-t 2an3 o6 emplo/ees 5a2ged ;it5 atuall/ seeing to t5e spei6i pe2sonnel ation 2eFui2ed. In 6ine+ t5e 2eal aut5o2it/+ su5 as in 5i2ing o2 6i2ing o6 emplo/ees+ omes 62om management and e-e2ised / means o6 inst2utions+ given in gene2al te2ms+ / t5e manage2ial emplo/eesM t5e supe2viso2/ emplo/ees+ alt5oug5 ostensil/ 5olding t5at po;e2+ in t2ut5+ 5o;eve2+ onl/ at in oediene to t5e di2etives 5anded do;n to t5em. T5e latte2 unit+ unli3e t5e 6o2me2+ annot e onside2ed t5e alte2 ego o6 t5e o;ne2 o6 ente2p2ise. --T5e duties and 2esponsiilities o6 t5e meme2s o6 petitione2 union+ s5o;n / t5ei2  =o des2iption --- onve/ no mo2e t5an t5ose t5at a2e aptl/ onsigned to t5e supe2viso2/ g2oup / t5e 2elativel/ small unit o6 manage2ial manage2ial emplo/ees.

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I sumit+ ;it5 due 2espet+ t5at t5e meme2s o6 petitioning union+ not 2eall/ eing manage2ial emplo/ees in t5e t2ue sense o6 t5e te2m+ a2e not disFuali6ied 62om 6o2ming o2 =oining lao2 o2gani>ations unde2 #2tile 7< o6 t5e Lao2 Code. --T5e 2est2ition emodied in #2tile 7< o6 t5e Lao2 Code is not ;it5out p2ope2  2ationale. Conededl/+ t5e p2o5iition to 6o2m lao2 o2gani>ations on t5e pa2t o6  manage2ial emplo/ees na22o;s do;n t5ei2 62eedom o6 assoiation. T5e ve2/ natu2e o6 manage2ial 6untions+ 5o;eve2+ s5ould p2elude t5ose ;5o e-e2ise t5em 62om ta3ing ta3ing a position position adve2se adve2se to t5e inte2est inte2est t5e/ a2e ound to se2ve and p2otet. p2otet. T5e me2e oppo2tunit/ to unde2mine t5at inte2est an validl/ e 2est2ained. To sa/ t5at t5e 2ig5t o6 manage2ial emplo/ees to 6o2m a lao2 o2gani>ation ;it5in t5e onte-t and amit o6 t5e Lao2 Code s5ould e deemed totall/ sepa2ale 62om t5e 2ig5t to a2gain olletivel/ is not =usti6ied / 2elated p2ovisions o6 t5e Code. I 6ind it 5a2d to elieve t5at t5e 6undamental la; ould 5ave envisioned t5e use / manage2ial emplo/ees emplo/ees o6 oe2ive means against t5ei2 o;n emplo/e2s ove2 matte2s ent2usted / t5e latte2 to t5e 6o2me2. 5eneve2 t2ust and on6idene is a ma=o2  aspet o6 an/ 2elations5ip+ a on6lit o6 inte2est on t5e pa2t o6 t5e pe2son to ;5om t5at t2ust and on6idene is 2eposed must e avoided and ;5en+ un6o2tunatel/+ it does still a2ise its ontainment an 2ig5tl/ e de2eed.