369 Phil. 617
ROMERO, J.:
Pagpalain's contentions are without merit.
- DEPARTMENT ORDER NO. 9, SERIES OF 1997, ISSUED BY PUBLIC RESPONDENT SECRETARY OF LABOR IS NULL AND VOID FOR BEING CONTRARY TO PUBLIC POLICY LAID DOWN BY THE SUPREME COURT IN PROTECTION TECHNOLOGY, INC. V. SECRETARY OF LABOR (G.R. NO. 117211, 1 MARCH 1995) AND PROGRESSIVE DEVELOPMENT CORP. V. SECRETARY OF LABOR (G.R. NO. 96425, 4 FEBRUARY 1992);
- DEPARTMENT ORDER NO. 9, SERIES OF 1997, OF PUBLIC RESPONDENT SECRETARY OF LABOR CANNOT ALTER THE REQUIREMENTS OF ARTICLES 241(H) AND (J) OF THE LABOR CODE OF THE PHILIPPINES, NOR CAN IT PREVAIL OVER THE RULINGS OF THE SUPREME COURT, WHICH FORM PART OF THE LAW OF THE LAND.
Art. 234. Requirements of registration.- Any applicant labor organization, association or group of unions or workers shall acquire legal personality and shall be entitled to the rights and privileges granted by law to legitimate labor organizations upon issuance of the certificate of registration based on the following requirements:As can be gleaned from the above, the Labor Code does not require the submission of books of account in order for a labor organization to be registered as a legitimate labor organization. The requirement that books of account be submitted as a requisite for a registration can be found only in Book V of the Omnibus Rules Implementing the Labor Code, prior to its amendment by Department Order No. 9, Series of 1997. Specifically, the old Section 3(e), Rule II, of Book V provided that `[t]he local or chapter of a labor federation or national union shall have and maintain a constitution and by-laws, set of officers and books of accounts. For reporting purposes, the procedure governing the reporting of independently registered unions, federations or national unions shall be observed."
(a) Fifty pesos (P50.00) registration fee;
(b) The names of its officers, their addresses, the principal address of the labor organization, the minutes of the organizational meetings and the list of the workers who participated in such meetings;
(c) The names of all its members comprising at least twenty percent (20%) of all the employees in the bargaining unit where it seeks to operate;
(d) If the applicant union has been in existence for one or more years, copies of its annual financial reports; and
(e) Four (4) copies of the constitution and by-laws of the applicant union, minutes of its adoption or ratification, and the list of the members who participated in it.
(a) A charter certificate issued by the federation or national union indicating the creation or establishment of the local/chapter;Since the Department Order No. 9 has done away with the submission of books of account as a requisite for registration, Pagpalain's only recourse now is to have said order declared null and void. It premises its case on the principles laid down in Progressive and Protection Technology. First, Pagpalain maintains that Department Order No. 9 is illegal, allegedly because it contravenes the above-mentioned rulings of this Court. Citing Article 8 of the Civil Code, which provides that "[j]udicial decisions applying or interpreting the laws or the Constitution shall form a part of the legal system of the Philippines," Pagpalain declares the two cases part of the law of the land which, under the third paragraph of Article 7 of the Civil Code,[5] may not be supplanted by mere regulation.
(b) The names of the local/chapter's officers, their addresses, and the principal office of the local/chapter;
(c) The local/chapter's constitution and by-laws; provided that where the local/chapter's constitution and by-laws is the same as that of the federation or national union, this fact shall be indicated accordingly.
All the foregoing supporting requirements shall be certified under oath by the Secretary or Treasurer of the local/chapter and attested by its President.[4]
It is immaterial that the Union, having been organized for less than a year before the application for registration with the BLR, would have had no real opportunity to levy and collect dues and fees from its members which need to be recorded in the books of account. Such accounting books can and must be submitted to the BLR, even if they contain no detailed or extensive entries as yet. The point to be stressed is that the applicant local or chapter must demonstrate to the BLR that it is entitled to registered status because it has in place a system for accounting for members' contributions to its fund even before it actually receives dues and fees from its members. The controlling intention is to minimize the risk of fraud and diversion in the course of the subsequent formation and growth of the Union fund. [Underscoring petitioner's]To buttress its argument, Pagpalain also cites Progressive, thus:
The employer naturally needs assurance that the union it is dealing with is a bona fide organization, one which has not submitted false statements or misrepresentations to the Bureau. The inclusion of the certification and attestation requirements will in a marked degree allay these apprehensions of management. Not only is the issuance of any false statement and misrepresentation a ground for cancellation of registration (See Article 239(a), (c) and (d)); it is also a ground for a criminal charge of perjury.Finally, Pagpalain cites as indicative of public policy, the following sections of Article 241 of the Labor Code:
The certification and attestation requirements are preventive measures against the commission of fraud. They likewise afford a measure of protection to unsuspecting employees who may be lured into joining unscrupulous or fly-by-night unions whose sole purpose is to control union funds or to use the union for dubious ends. [Underscoring petitioner's]
xxx xxx xxxUnder Article 8 of the Civil Code, "[j]udicial decisions applying or interpreting the laws or the Constitution shall form a part of the legal system of the Philippines." This does not mean, however, that courts can create law. The courts exist for interpreting the law, not for enacting it. To allow otherwise would be violative of the principle of separation of powers, inasmuch as the sole function of our courts is to apply or interpret the laws, particularly where gaps or lacunae exist or where ambiguities becloud issues, but it will not arrogate unto itself the task of legislating.
(h) Every payment of fees, dues, or other contributions by a member shall be evidenced by a receipt signed by the officer or agent making the collection and entered into the record of the organization to be kept and maintained for that purpose;
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(j) Every income or revenue of the organization shall be evidenced by a record showing its source, and every expenditure of its funds shall be evidenced by a receipt from the person to whom the payment is made, which shall state the date, place and purpose of such payment. Such record or receipt shall form part of the financial records of the organization. [Underscoring petitioner's]
Art. 241. Rights and conditions of membership in a labor organization- The following are the rights and conditions of membership in a labor organization:Furthermore, Article 274 of the Labor Code empowers the Secretary of Labor or his duly authorized representative to inquire into the financial activities of legitimate labor organizations upon the filing of a complaint under oath duly supported by the written consent of 20% of the total membership of the labor organization concerned, as well as to examine their books of accounts and other records to determine compliance or non-compliance with the law. All of these provisions are designed to safeguard the funds of a labor organization that they may not be squandered or frittered away by its officers or by third persons to the detriment of its members.
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(b) The members shall be entitled to full and detailed reports from their officers and representatives of all financial transactions as provided for in the constitution and by-laws of the organization;
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(g) No officer, agent or member of a labor organization shall collect any fees, dues, or other contributions in its behalf or make any disbursement of its funds unless he is duly authorized pursuant to its constitution and by-laws;
(h) Every payment of fees, dues, or other contributions by a member shall be evidenced by a receipt signed by the officer or agent making the collection and entered into the record of the organization to be kept and maintained for the that purpose;
(i) The funds of the organization shall not be applied for any purpose or object other than those expressly provided by its constitution or by-laws or those expressly authorized by written resolution adopted by the majority of the members at a general meeting duly called for the purpose;
(j) Every income or revenue of the organization shall be evidenced by a record showing its source, and every expenditure of its funds shall be evidenced by a receipt from the person to whom the payment is made, which shall state the date, place and purpose of such payment. Such record or receipt shall form part of the financial records of the organization.
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(l) The treasurer of any labor organization and every officer thereof who is responsible for the account of such organization or for the collection, management, disbursement, custody or control of the fund, moneys and other properties of the organization, shall render to the organization and to its members a true and correct account of all the moneys received and paid by him since he assumed office or since the last day on which he rendered such account, and of all bonds, securities and other properties of the organization entrusted to his custody or under his control. The rendering of such account shall be made:
(1) At least once a year within 30 days after the close of its fiscal year;
(2) At such other times as may be required by a resolution of the majority of the members of the organization;
(3) Upon vacating his office.
The account shall be duly audited and verified by affidavit and a copy thereof shall be furnished the Secretary of Labor.
(m) The books of account and other records of the financial activities of any labor organization shall be open to inspection by any officer or member thereof during office hours;
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