18. Volkschel Labor Union vs. BLR G.R. No.
L-45824 June 19, 1985
Facts: Petitioner was once affiliated with the Associated Labor Union for Metal Workers.
However, both unions, using the name Volkschel Labor Union Associated Labor Union for
Metal Workers, jointly entered into a collective bargaining agreement with respondent
companies. Later on, majority of petitioner's members decided to disaffiliate from respondent
federation in order to operate on its own as an independent labor group pursuant to Article 241
(formerly Article 240) of the Labor Code of the Philippines, the pertinent portion of which reads:
incumbent affiliates of existing federations or national unions may disaffiliate only for the
purpose of joining a federation or national union in the industry or region in which it properly
belongs or for the purpose of operating as an independent labor group. Accordingly, a resolution
was adopted and signed by petitioner's members revoking their check-off authorization in favor
of ALUMETAL and notices thereof were served on ALUMETAL and respondent companies.
ALUMETAL which wrote respondent companies advising them to continue deducting union
dues and remitting them to said federation, respondent companies sought the legal opinion of the
respondent Bureau as regards the controversy between the two unions. The Med-Arbiter
rendered a Resolution which in effect found the disaffiliation legal but at the same time gave the
opinion that, petitioner's members should continue paying their dues to ALUMETAL in the
concept of agency fees. From the said Resolution, of the Med-Arbiter both petitioner and
respondent ALUMETAL appealed to the Director of respondent Bureau. Petitioner' contended
that the Med-Arbiter's opinion to the effect that petitioner's members remained obligated to pay
dues to respondent ALUMETAL was inconsistent with the dispositive finding that petitioner's
disaffiliation from ALUMETAL was valid. ALUMETAL, on the other hand, assailed the
Resolution in question asserting that the disaffiliation should have been declared contrary to law.
Issues:
1 Whether or not a local union has the right to disaffiliate from its mother union.
2 Whether or not companies have the right to effect union dues collections despite revocation by
the employees of the check-off authorization
Ruling:
1 A local union, being a separate and voluntary association, is free to serve the interest of all its
members including the freedom to disaffiliate when circumstances warrant. This right is
consistent with the Constitutional guarantee of freedom of association (Article IV, Section 7,
Philippine Constitution). Petitioner contends that the disaffiliation was not due to any
opportunists motives on its part. Rather it was prompted by the federation's deliberate and
habitual dereliction of duties as mother federation towards petitioner union. Employees'
grievances were allegedly left unattended to by respondent federation to the detriment of the
employees' rights and interests. 2 Under Section 3, Article I, of the CBA, the obligation of the
respondent companies to deduct and remit dues to ALUMETAL is conditioned on the individual
check-off authorization of petitioner's members, In other words, ALUMETAL is entitled to
receive the dues from respondent companies as long as petitioner union is affiliated with it and
respondent companies are authorized by their employees (members of petitioner union) to deduct
union dues. Without said affiliation, the employer has no link to the mother union. The
obligation of an employee to pay union dues is coterminous with his affiliation or membership.
"The employees' check-off authorization, even if declared irrevocable, is good only as long as
they remain members of the union concerned." 7 A contract between an employer and the parent
organization as bargaining agent for the employees is terminated by the disaffiliation of the local
of which the employees are members