INDUSTRIES-HERITAGE HOTEL MANILA

SUPERVISORS CHAPTER (NUWHRAINHHMSC) G.R. No. 178296, January

12, 2011
FACTS:
The respondents petition for certification election was granted. Petitioner then discover
ed that respondent had failed to submit to the Bureau of Labor Relations (BLR) its annu
al financial report for several years and the list of its members since it filed its registratio
n papers in 1995. Consequently, it filed a Petition for Cancellation of Registration of resp
ondent, on the ground of the non-submission of the said documents. Petitioner prayed t
hat respondents Certificate of Creation of Local/Chapter be cancelled and its name be d
eleted from the list of legitimate labor organizations. It further requested the suspension
of the certification election proceedings. Nevertheless, the certification election pushed t
hrough and the respondent won.
The Regional Director of DOLE-NCR and DOLE Secretary both held that constitutionall
y guaranteed freedom of association and right of workers to self-organization outweighe
d respondents noncompliance with the statutory requirements to maintain its status as
a legitimate labor organization.
ISSUE:
Whether or not the failure to comply with the statutory requirement(filing financial repo
rts and the list of its members) sufficient ground for the cancellation of registration of th
e respondent as a labor union.

HELD:
No, the non-compliance should not be a ground for the cancellation. Articles 238 and 23
9 of the Labor Code provide that failure to file financial reports and the list of its membe
rs are grounds for the cancellation of Union Organization. However, consideration must
be taken of the fundamental rights guaranteed by Article XIII, Section 3 of the Constitut
ion, i.e., the rights of all workers to self-organization, collective bargaining and negotiati
ons, and peaceful concerted activities. Labor authorities should bear in mind that registr
ation confers upon a union the status of legitimacy and the concomitant right and privile
ges granted by law to a legitimate labor organization, particularly the right to participate
in or ask for certification election in a bargaining unit. Thus, the cancellation of a certific
ate of registration is the equivalent of snuffing out the life of a labor organization. For wi
thout such registration, it loses as a rule its rights under the Labor Code.

Furthermore, that the Labor Codes provisions on cancellation of union registration and
on reportorial requirements have been recently amended by Republic Act (R.A.) No. 94
81, An Act Strengthening the Workers Constitutional Right to Self-Organization, Amen

ding for the Purpose Presidential Decree No. 442, As Amended, Otherwise Known as the
Labor Code of the Philippines, which says that failure to file financial reports and list of
union members shall not be a ground for cancellation of union registration but shall sub
ject the erring officers or members to suspension, expulsion from membership, or any a
ppropriate penalty.