When Can an SSS List Be Used in a Certification Election?

G.R. No. 111245, January 31, 1997

Imagine a workplace where employees feel their voices aren’t being heard. Certification elections are the cornerstone of industrial democracy, offering a way for workers to choose their representatives. But what happens when a company refuses to provide the necessary payroll information? Can other sources, like the Social Security System (SSS) list, be used to determine eligible voters? This case explores that critical question.

In Samahan ng Manggagawa sa Pacific Plastic vs. Hon. Bienvenido Laguesma, the Supreme Court tackled the issue of using an SSS list in a certification election when the employer failed to provide the payroll. The Court’s decision provides clarity on the importance of upholding the employees’ right to choose their bargaining representatives and the circumstances under which alternative voter lists can be used.

The Legal Foundation for Certification Elections

Certification elections are governed by the Labor Code of the Philippines and its Implementing Rules. Article 256 of the Labor Code is central to this process, stating:

“Art. 256. Representation Status; Election of Incumbent Bargaining Agent. – In case of a validly filed petition for certification election, the employer shall not be allowed to file a petition questioning the majority status of the incumbent bargaining agent during the freedom period or within sixty (60) days prior to the expiration of the collective bargaining agreement.”

This provision underscores the importance of allowing employees to freely choose their bargaining agent through a certification election. To ensure a fair election, the Implementing Rules typically require the use of the company payroll to determine the list of eligible voters. This is because the payroll is considered the most accurate and reliable record of employees within the bargaining unit.

However, the rules also recognize that strict adherence to the payroll requirement can sometimes be impractical or even lead to abuse. For example, an employer might deliberately withhold the payroll to prevent a certification election from taking place. To address this potential problem, the law allows for the use of alternative sources of information, such as the SSS list, when the payroll is unavailable or unreliable. This is not a matter of preference, but rather a contingency plan to ensure the election proceeds fairly.

The Pacific Plastic Case: A Fight for Representation

The case began with a petition for certification election filed by Malayang Nagkakaisang Manggagawa ng Pacific Plastic (MNMPP). Samahan ng Manggagawa sa Pacific Plastic (SAMAHAN), another union in the company, opposed the petition. The employer, Pacific Plastic Corporation (PPC), repeatedly failed to submit the required list of rank-and-file employees.

Here’s a breakdown of the key events:

• August 24, 1990: MNMPP files a petition for certification election.
• May 6, 1991: A pre-election conference is held, and PPC is required to submit its payroll.
• June 3, 1991: PPC fails to appear at the conference, prompting a final warning from the DOLE.
• October 6, 1992: The certification election is held, using the SSS list due to PPC’s non-compliance. MNMPP wins the election.
• October 9, 1992: SAMAHAN protests the election results, citing discrepancies in the voter list and other procedural issues.

SAMAHAN argued that the use of the SSS list was a violation of the Implementing Rules, which prioritize the company payroll. They also claimed that the election was invalid because not all eligible employees participated. The Med-Arbiter dismissed SAMAHAN’s protest, and the Undersecretary of Labor affirmed the decision, leading SAMAHAN to elevate the case to the Supreme Court.

The Supreme Court, in upholding the election, emphasized the importance of ensuring that employees’ right to choose their bargaining representative is not thwarted by technicalities or employer misconduct. The Court stated:

“It bears stressing that no obstacle must be placed to the holding of certification elections, for it is a statutory policy that should not be circumvented… It is the appropriate means whereby controversies and disputes on representation may be laid to rest, by the unequivocal vote of the employees themselves. Indeed, it is the keystone of industrial democracy.”

The Court further reasoned that the unjustified refusal of the company to submit the payroll justified the use of the SSS list as the next best source of information. The Court found no substantial reason to nullify the certification election based on the use of SSS list.

Practical Implications for Employers and Unions

This case offers several important lessons for employers and unions involved in certification elections:

• Employers must comply with DOLE orders: Failure to provide required documents, such as the payroll, can lead to the use of alternative sources for voter lists.
• Alternative voter lists are acceptable in certain circumstances: When the payroll is unavailable or unreliable, the SSS list or other public records can be used.
• Timely objections are crucial: Any objections to the voter list or election procedures must be raised promptly and formalized within the prescribed timeframe.

Key Lessons:

• Employers should proactively provide accurate payroll information to avoid the use of alternative voter lists.
• Unions should be prepared to present alternative sources of information if the employer fails to cooperate.
• Parties should raise any objections promptly to avoid waiving their right to challenge the election results.

Frequently Asked Questions

Q: What is a certification election?

A: A certification election is a process by which employees vote to determine which labor union, if any, will represent them in collective bargaining with their employer.

Q: Why is the company payroll usually used to determine eligible voters?

A: The company payroll is considered the most accurate and reliable record of employees within the bargaining unit.

Q: Can an SSS list always be used in a certification election?

A: No, the SSS list is typically used only when the company payroll is unavailable or unreliable.

Q: What happens if an employer refuses to provide the payroll?

A: The DOLE can order the use of alternative sources of information, such as the SSS list, to determine eligible voters.

Q: What should a union do if it believes the voter list is inaccurate?

A: The union should raise its objections promptly and provide evidence to support its claims.

Q: What is the ‘contract bar rule’ mentioned in the case?

A: The ‘contract bar rule’ prevents a certification election from being held during the term of a valid collective bargaining agreement, except during the freedom period (the 60 days before the CBA expires).

Q: What is the role of the Med-Arbiter?

A: A Med-Arbiter is a Department of Labor and Employment (DOLE) official who mediates and arbitrates labor disputes, including election protests.

Q: What is the significance of the ‘freedom period’?

A: The freedom period is the 60-day window before the expiration of a collective bargaining agreement during which a new certification election can be held.

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