Law School Noob: [CASE DIGEST] Bank of the Philippine Islands (BPI) v. BPI Employees Union

Friday, October 25, 2013

[CASE DIGEST] Bank of the Philippine Islands (BPI) v. BPI Employees Union

October 19, 2011 | G.R. No. 164301

Bank of the Philippine Islands, petitioner
BPI Employees Union - Davao Chapter - Federation of Unions in BPI Unibank, respondents

FACTS:

Two banks namely BPI and Far East Bank and Trust Company (FEBTC) merged, with BPI as the surviving corporation. On account of this merger, FEBTC employees were hired by BPI as its own employees.

BPI Employees Union-Davao Chapter - Federation of Unions in BPI Unibank is the sole and exclusive bargaining agent of BPI's rank and file employees in Davao City.

In March 2000, the BPI Employees Union invited the former FEBTC employees to a meeting regarding the Union Shop Clause (Article II, Section 2) of the existing CBA. Some of the former FEBTC employees joined the Union, while others refused. Some of those who initially joined retracted their membership. It must be noted that the former FEBTC rank-and-file employees in Davao City did not belong to any labor union at the time of the merger.

Subsequently, the Union sent notices to the former FEBTC employees who refused to join, as well as those who retracted their membership, and called them to a hearing, which they refused to attend. The president of the Union requested BPI to implement the Union Shop Clause of the CBA and to terminate those who refuse to join the Union.

ISSUE:

Whether the former FEBTC employees are covered by the Union Shop Clause in the CBA. -- YES.

HELD:

Union shop means that all new regular employees are required to join the union within a certain period for their continued employment.

The rationale for upholding the validity of union shop clause is not to protect the union for the unions sake. A strong and effective union presumably benefits all employees in the bargaining unit since such a union would be in a better position to demand improved benefits and conditions of work from the employer.

Given the foregoing, the Union Shop Clause of the CBA covers the former FEBTC employees who were hired/employed by BPI during the effectivity of the CBA. A contrary ruling would lead to an inequitable and very volatile labor situation.

In the case of former FEBTC employees who initially joined the union but later withdrew their membership, there is even greater reason for the union to request their dismissal from the employer since the CBA also contained a Maintenance of Membership Clause.

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