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SIS Employees and Workers Union (SIS-EWU) is the exclusive bargaining representative of the rank-and-file employees of SIS Corporation. The…

2026 Bar Exam · Labor Law & Social Legislation · Question 12 · Essay

The question

SIS Employees and Workers Union (SIS-EWU) is the exclusive bargaining representative of the rank-and-file employees of SIS Corporation. The Collective Bargaining Agreement between SIS Corporation and SIS-EWU contains a union security clause that requires all rank-and-file employees of the company to be union members in good standing as a condition for employment. Yolanda, the treasurer of SIS-EWU, was accused of, and thereafter, found guilty of malversation of union funds by the union’s Disciplinary Committee. She was thus expelled from the union. Aggrieved, Yolanda appealed the decision. In the meantime, the president of SIS-EWU went to SIS’s Human Resource Department (HRD) and asked that Yolanda be dismissed from employment. However, Jun, the HRD manager of SIS, explained that the company cannot terminate Yolanda on such ground. He further advised the union to settle the matter with the Labor Relations Division of the Department of Labor and Employment, which has jurisdiction over intra-union disputes. Is Jun correct? Explain.

Held

Yes, Jun is correct that SIS Corporation cannot dismiss Yolanda solely on the union's request without following the proper procedure and that the intra-union dispute regarding Yolanda's expulsion should be settled with the Labor Relations Division of the Department of Labor and Employment, under Article 232 of the Labor Code and Rule XI, Sections 1 and 4 of the DOLE Issuances.

Explanation

The Department of Labor and Employment (DOLE), through its Bureau of Labor Relations and regional Labor Relations Divisions, has original and exclusive jurisdiction over all intra-union disputes, including the validity or invalidity of expulsion of union members or officers, as well as disputes involving union membership rights. This means that conflicts arising within a union, such as Yolanda's expulsion for malversation of union funds, must be resolved by the Labor Relations Division or the Med-Arbiter designated by DOLE, not directly by the employer.

The union security clause in a Collective Bargaining Agreement (CBA) may require all rank-and-file employees to be union members in good standing as a condition of employment. If a union member is expelled, the union may request the employer to enforce the clause by terminating the employee. However, the employer cannot summarily dismiss the employee without ensuring that the union's expulsion decision is supported by sufficient evidence and that the employee is afforded due process, including written notices and an opportunity to be heard.

The employer's role is to verify that the union's expulsion decision complies with due process and is justified. The employer cannot act solely on the union's request without independently determining the sufficiency of evidence and observing procedural safeguards. Moreover, intra-union disputes, such as challenges to expulsion, must be settled through the proper DOLE channels before the employer can lawfully terminate employment based on the union security clause.

Application to the facts

In this case, Yolanda was expelled from the union after being found guilty of malversation by the union's Disciplinary Committee. She appealed the decision. However, the sources do not establish whether the appeal suspends the effectivity of the expulsion or whether the expulsion is already final for purposes of the union security clause. The president of SIS-EWU requested SIS Corporation's HRD to dismiss Yolanda based on the union security clause. Jun, the HRD manager, correctly explained that the company cannot dismiss Yolanda on that ground yet because the intra-union dispute about her expulsion must first be resolved by the Labor Relations Division of DOLE, which has exclusive jurisdiction over such matters.

Jun's advice to settle the matter with the Labor Relations Division is consistent with the law that intra-union disputes, including the validity of expulsion, are within DOLE's exclusive authority. The employer must wait for the final resolution of the intra-union dispute before enforcing the union security clause to terminate Yolanda's employment. Furthermore, even if the expulsion is upheld, the employer must observe due process by giving Yolanda written notices and an opportunity to be heard before dismissal.

  • a constitutional provision is among the sources and controls over any conflicting statute
This is general legal information, not legal advice.