MERALCO v. Secretary of Labor and EmploymentJ. MedialdeaG.R. No. 91902TOPIC: Supervisors; Security Guards; On March 2, 1989, the Congress passed the actual RA 6715 (not the IRR), Sec. 18 of which amended Art. 245, stating that only supervisory employees are prohibited from membership in labor organizations and bargaining units of the rank-and-file. Art. 245 does not prohibit security guards and personnel from joining such organizations.FACTS: The Staff and Technical Employees of Meralco (STEAM) filed a petition for certification of election, seeking to represent non-managerial employees with pay grades VII and above, non-managerial employees in the security and patrol division, and employees within the rank-and-file who are disqualified from becoming union members of any organization within the same bargaining unit, since the Meralco Employees and Workers Association (MEWA) represents employees from pay grade I-VI. Meralco sought to dismiss since managerial employees are prohibited by law from forming or joining supervisory unions and since security guards cannot join the rank-and-file, among others.Med-Arbiter: Managerial employees cannot form, join, or assist a labor organization or the rank and file; those in Patrol and Security are tasked with providing security in the company and are not eligible to join the rank-and-bargaining unit pursuant to Sec. 2(c), Rule V, Book V of the IRR of the LC (1988).

With the enactment of RA 6715 and its IRR, the STEAM renounced its representation of the employees in the patrol and security division, as said employees were excluded from being able to join unions, along with supervisory employees, with the passage of RA 6715. The Med-Arbiter, in its Resolution, provided that non-managerial employees of the Security and Patrol Division are considered among the rank-and-file and granted the petition for certification of election, to the exclusion of supervisory employees.ISSUE: Whether or not the security guards or personnel may be lumped together with the rank-and-file union and/or the supervisory union (YES as to rank-and-file)RESOLUTION: Petition DISMISSEDA. Right of security guards to self-organize; Applicable law before was the IRR of RA 6715, with two provisions prohibiting supervisory employees and security guards from joining labor organizations and bargaining units of the rank-and-file. On Dec. 24, 1986, Pres. Cory Aquino passed EO No. 111 which eliminated the provision with regard to security guards, effectively amending Art. 245 of the Labor Code to exclude only supervisory employees from joining labor organizations

On March 2, 1989, the Congress passed the actual RA 6715 (not the IRR), Sec. 18 of which amended Art. 245, stating that only supervisory employees are prohibited from membership in labor organizations and bargaining units of the rank-and-file. Art. 245 does not prohibit security guards and personnel from joining such organizations.B. Security guards right to organize; possible consequences; RA 6715 is apt to produce divided loyalties in the faithful performance of their duties. Economic reasons would present the employees concerned with the temptation to subordinate their duties to the allegiance they owe to the union. In the event of a strike, security personnel may neglect or abandon their duties, such as protection of the employer, the control of the premises, the protection of property of the employer and the persons of its officials and employees. The Court just hopes that corresponding amendatory and suppletory laws from Congress will help avoid possible conflict of interest in security personnel.