In a dispute over union leadership, the Supreme Court clarified that a federation’s constitution strictly governs the eligibility of its officers. The Court affirmed the nullification of an election where an employee of the Federation of Free Workers (FFW) was elected as National Vice-President, as the FFW’s constitution explicitly prohibits staff members from holding positions on its Governing Board. This decision underscores the importance of adhering to internal union rules and ensuring that election processes are conducted in accordance with those rules, to maintain the integrity and proper governance of labor organizations.

When Internal Union Rules Trump Election Results: Who Decides the Qualifications for Leadership?

The case of Atty. Allan S. Montaño v. Atty. Ernesto C. Verceles arose from a contested election within the Federation of Free Workers (FFW). Atty. Montaño, an employee of the FFW Legal Center and president of the FFW Staff Association, was elected as the National Vice-President of FFW. However, his eligibility was challenged by Atty. Verceles, a delegate to the convention and president of an affiliate union, who argued that Atty. Montaño’s candidacy violated the FFW Constitution and By-Laws. The core legal question revolved around the interpretation and application of the FFW’s internal rules regarding the qualifications for holding office within the federation. The dispute highlighted a conflict between the election results, reflecting the will of the convention delegates, and the explicit provisions of the FFW’s constitution, which seemingly disqualified Atty. Montaño.

The FFW COMELEC initially informed Atty. Montaño that he was not qualified due to Section 76 of Article XIX and Section 25(a) of Article VIII of the FFW Constitution and By-Laws. Despite this, the convention delegates allowed his candidacy, and he was elected. Atty. Verceles protested, leading to a petition before the Bureau of Labor Relations (BLR) to nullify the election. The BLR dismissed the petition, finding that Section 26 of Article VIII was the applicable provision and that Atty. Montaño met its requirements. However, the Court of Appeals (CA) reversed the BLR’s decision, agreeing that Section 26 of Article VIII applied but ruling that Atty. Montaño did not meet its qualification requirements. Specifically, the CA argued that as a legal assistant employed by FFW, Atty. Montaño was considered a confidential employee and thus ineligible to join the FFW Staff Association, a rank-and-file union of FFW.

The Supreme Court took a different approach, focusing on the authority of the FFW COMELEC to interpret and enforce the federation’s constitution. The Court noted that the FFW COMELEC is vested with the power to screen candidates, determine their qualifications, and promulgate rules concerning the conduct of elections. Under the Rules Implementing the Labor Code, the Committee has the power to prescribe rules on the qualification and eligibility of candidates and such other rules as may facilitate the orderly conduct of elections. The Court emphasized that the FFW Constitution and By-laws are clear: no member of the Governing Board shall at the same time perform functions of the rank-and-file staff. This prohibition, found in Section 76, Article XIX, was the basis for the FFW COMELEC’s initial disqualification of Atty. Montaño.

The Court cited Section 76, Article XIX of the FFW Constitution and By-laws, which states: “Except as otherwise provided in this Constitution, no Member of the Governing Board shall at the same time be an employee in the staff of the Federation.” The Court noted that at the time of his nomination and election, Atty. Montaño was the head of FFW Legal Center and the President of FFW Staff Association. Even after being elected, he continued to perform his functions as a staff member of FFW, and no evidence was presented to show that he tendered his resignation. Based on this, the Court found that the FFW COMELEC was correct in disqualifying Atty. Montaño.

The Court acknowledged that the CA erred in declaring the FFW Staff Association illegitimate, as this amounted to a proscribed collateral attack. However, the Court affirmed the CA’s ultimate finding that Atty. Montaño was disqualified, albeit for a different reason: his violation of the FFW Constitution and By-Laws’ prohibition on federation employees sitting on the Governing Board. This decision underscores the primacy of internal union rules in determining the eligibility of candidates for union office. The Federation/Union’s Constitution and By-Laws govern the relationship between and among its members. They are akin to ordinary contracts in that their provisions have obligatory force upon the federation/ union and its member. What has been expressly stipulated therein shall be strictly binding on both. The Court emphasized that the FFW COMELEC’s interpretation of these rules should be respected unless it is shown to have committed grave abuse of discretion.

The Court also addressed several procedural issues raised by Atty. Montaño. It rejected his claim that the BLR lacked jurisdiction, noting that the BLR and Regional Directors of DOLE have concurrent jurisdiction over intra-union disputes. It also dismissed his argument that the petition was prematurely filed, finding that Atty. Verceles had exhausted the remedies available within the union. Finally, the Court held that Atty. Montaño’s allegation regarding the certification against forum shopping was raised too late, as it was only presented in his motion for reconsideration of the CA’s decision.

While the specific term of office in question had expired, rendering the immediate issue moot, the Court deemed it necessary to resolve the case due to the potential for repetition and the importance of clarifying the interpretation of the FFW Constitution & By-laws. This decision serves as a guide for future elections and ensures that the FFW’s internal rules are consistently applied. By upholding the FFW COMELEC’s authority and emphasizing the binding nature of internal union rules, the Court reinforced the principles of union self-governance and democratic processes within labor organizations.

FAQs

What was the key issue in this case?	The key issue was whether Atty. Montaño was qualified to run for FFW National Vice-President, given his position as an FFW employee and the restrictions in the FFW Constitution and By-Laws. The Supreme Court ultimately ruled that he was not qualified due to the constitutional prohibition.
Why did the FFW COMELEC initially disqualify Atty. Montaño?	The FFW COMELEC disqualified Atty. Montaño based on Section 76, Article XIX of the FFW Constitution and By-Laws, which prohibits members of the Governing Board from also being employees of the federation. His position as head of the FFW Legal Center conflicted with this provision.
What was the main basis for the Supreme Court’s decision?	The Supreme Court primarily based its decision on the FFW Constitution and By-Laws, particularly the prohibition in Section 76, Article XIX. It emphasized the binding nature of these internal rules and the authority of the FFW COMELEC to interpret them.
Did the Court agree with the Court of Appeals’ reasoning?	The Court agreed with the CA’s ultimate finding that Atty. Montaño was disqualified but disagreed with the CA’s reasoning regarding the legitimacy of the FFW Staff Association. The Supreme Court found the CA’s declaration of illegitimacy was a proscribed collateral attack.
What is the significance of the FFW Constitution and By-Laws in this case?	The FFW Constitution and By-Laws were central to the case as they established the rules and qualifications for holding office within the federation. The Court emphasized that these rules are binding on all members and must be strictly followed.
Why did the Supreme Court address the case even though the term of office had expired?	The Supreme Court addressed the case despite its mootness because the issue was capable of repetition and it was important to clarify the interpretation of the FFW Constitution & By-laws. This would ensure credible future elections and protect the interests of FFW affiliate unions.
What is the role of the Bureau of Labor Relations (BLR) in this type of dispute?	The BLR has jurisdiction over intra-union disputes, including those involving the conduct or nullification of union elections. The BLR’s role is to ensure that elections are conducted fairly and in accordance with applicable laws and the union’s constitution.
What does this case teach us about union governance?	This case underscores the importance of adhering to internal union rules and ensuring that election processes are conducted in accordance with those rules. It reinforces the principles of union self-governance and democratic processes within labor organizations.

The Supreme Court’s decision in Montaño v. Verceles serves as a reminder of the importance of adhering to the internal rules of labor organizations and respecting the authority of election committees. By upholding the FFW COMELEC’s interpretation of the federation’s constitution, the Court has reinforced the principles of union self-governance and democratic processes within labor organizations, providing clarity for future elections and ensuring the integrity of union leadership.

For inquiries regarding the application of this ruling to specific circumstances, please contact ASG Law through contact or via email at frontdesk@asglawpartners.com.

Disclaimer: This analysis is provided for informational purposes only and does not constitute legal advice. For specific legal guidance tailored to your situation, please consult with a qualified attorney.
Source: Atty. Allan S. Montaño v. Atty. Ernesto C. Verceles, G.R. No. 168583, July 26, 2010