G.R. No.
L-53515 February 8, 1989 of the assailed marketing technique is the effort of
the company to compensate whatever loss the
workers may suffer because of the new plan over
SAN MIGUEL BREWERY SALES FORCE UNION
and above than what has been provided in the
(PTGWO), petitioner,
collective bargaining agreement. To us, this is one
vs.
indication that the action of the management is
HON. BLAS F. OPLE, as Minister of Labor and SAN MIGUEL
devoid of any anti-union hues. (pp. 24-25, Rollo.)
CORPORATION, respondents.
The dispositive part of the Minister's Order reads:
Lorenzo F. Miravite for petitioner.
WHEREFORE, premises considered, the notice of
Isidro D. Amoroso for New San Miguel Corp. Sales Force Union.
strike filed by the petitioner, San Miguel Brewery
Sales Force Union-PTGWO is hereby dismissed.
Siguion Reyna, Montecillo & Ongsiako for private respondent. Management however is hereby ordered to pay an
additional three (3) months back adjustment
commissions over and above the adjusted
commission under the complementary distribution
system. (p. 26, Rollo.)
GRIÑO-AQUINO, J.:
The petition has no merit.
This is a petition for review of the Order dated February 28, 1980 of
the Minister of Labor in Labor Case No. AJML-069-79, approving the
private respondent's marketing scheme, known as the "Complementary Public respondent was correct in holding that the CDS is a valid
Distribution System" (CDS) and dismissing the petitioner labor union's exercise of management prerogatives:
complaint for unfair labor practice.
Except as limited by special laws, an employer is
On April 17, 1978, a collective bargaining agreement (effective on May free to regulate, according to his own discretion
1, 1978 until January 31, 1981) was entered into by petitioner San and judgment, all aspects of
Miguel Corporation Sales Force Union (PTGWO), and the private employment, including hiring, work assignments,
respondent, San Miguel Corporation, Section 1, of Article IV of which working methods, time, place and manner of
provided as follows: work, tools to be used, processes to be
followed, supervision of workers, working
regulations, transfer of employees, work
Art. IV, Section 1. Employees within the supervision, lay-off of workers and the discipline,
appropriate bargaining unit shall be entitled to a dismissal and recall of work. ... (NLU vs. Insular La
basic monthly compensation plus commission Yebana Co., 2 SCRA 924; Republic Savings Bank
based on their respective sales. (p. 6, Annex A; p. vs. CIR 21 SCRA 226, 235.) (Perfecto V.
113, Rollo.) Hernandez, Labor Relations Law, 1985 Ed., p. 44.)
(Emphasis ours.)
In September 1979, the company introduced a marketing scheme
known as the "Complementary Distribution System" (CDS) whereby its Every business enterprise endeavors to increase its profits. In the
beer products were offered for sale directly to wholesalers through San process, it may adopt or devise means designed towards that goal. In
Miguel's sales offices. Abbott Laboratories vs. NLRC, 154 SCRA 713, We ruled:
The labor union (herein petitioner) filed a complaint for unfair labor ... Even as the law is solicitous of the welfare of
practice in the Ministry of Labor, with a notice of strike on the ground the employees, it must also protect the right of an
that the CDS was contrary to the existing marketing scheme whereby employer to exercise what are clearly
the Route Salesmen were assigned specific territories within which to management prerogatives. The free will of
sell their stocks of beer, and wholesalers had to buy beer products management to conduct its own business affairs to
from them, not from the company. It was alleged that the new achieve its purpose cannot be denied.
marketing scheme violates Section 1, Article IV of the collective
bargaining agreement because the introduction of the CDS would
reduce the take-home pay of the salesmen and their truck helpers for So long as a company's management prerogatives are exercised in
the company would be unfairly competing with them. good faith for the advancement of the employer's interest and not for
the purpose of defeating or circumventing the rights of the employees
under special laws or under valid agreements, this Court will uphold
The complaint filed by the petitioner against the respondent company them (LVN Pictures Workers vs. LVN, 35 SCRA 147; Phil. American
raised two issues: (1) whether the CDS violates the collective Embroideries vs. Embroidery and Garment Workers, 26 SCRA 634; Phil.
bargaining agreement, and (2) whether it is an indirect way of busting Refining Co. vs. Garcia, 18 SCRA 110). San Miguel Corporation's offer
the union. to compensate the members of its sales force who will be adversely
affected by the implementation of the CDS by paying them a so-called
In its order of February 28, 1980, the Minister of Labor found: "back adjustment commission" to make up for the commissions they
might lose as a result of the CDS proves the company's good faith and
lack of intention to bust their union.
... We see nothing in the record as to suggest that
the unilateral action of the employer in
inaugurating the new sales scheme was designed WHEREFORE, the petition for certiorari is dismissed for lack of merit.
to discourage union organization or diminish its
influence, but rather it is undisputable that the SO ORDERED.
establishment of such scheme was part of its
overall plan to improve efficiency and economy
and at the same time gain profit to the highest.
While it may be admitted that the introduction of
new sales plan somewhat disturbed the present
set-up, the change however was too insignificant
as to convince this Office to interpret that the
innovation interferred with the worker's right to
self-organization.
Petitioner's conjecture that the new plan will sow
dissatisfaction from its ranks is already a
prejudgment of the plan's viability and
effectiveness. It is like saying that the plan will not
work out to the workers' [benefit] and therefore
management must adopt a new system of
marketing. But what the petitioner failed to
consider is the fact that corollary to the adoption
