UNITED POLYRESINS INC v. PINUELA union to expel the employee from the union.

union to expel the employee from the union. With respect to the last requisite, there is no
Union Security - Implementation| 31 July 2017 | J. Del Castillo
Nature of Case: Petition for Review on Certiorari
Digest maker: Africa
SUMMARY: Pinuela who was former president of PORFA was expelled on the ground of
misappropriation of funds and violation of the union’s constitution. Due to the union
security clause, his employment was terminated by UPI, prompting Pinuela to file an illegal
dismissal case. SC ruled in his favour on ground that his expulsion from the union is without
support, and as a consequence, his dismissal from the company is without just cause.
DOCTRINE: When an employer exercises its power to terminate an employee by enforcing
the union security clause, it needs to determine and prove the following: (1) the union
security clause is applicable; (2) the union is requesting for the enforcement of the union
security provision in the CBA; and (3) there is sufficient evidence to support the decision of
the union to expel the employee from the union. With respect to the last requisite
sufficient evidence to support the expulsion and Pinuela was not properly informed of the
accusations against him.
ISSUE/S & RATIO:
1. WON respondent was illegally dismissed. — YES
- Pinuela was expelled from the union on the ground of misappropriation of funds and
wilful violation of their union’s constitutional provision. However, these provisions refer to
impeachment and recall of union officers, and not expulsion from union membership.
- The only provision authorizing removal from the union is found in Article X, Section 6, that
is, on the ground of failure to pay union dues, special assessments, fines, and other
mandatory charges.
- On the other hand, those who are disqualified from membership are subversives or persons
who profess subversive ideas; persons convicted of crime involving moral turpitude; and
persons who aren’t company’s employees. In this case, although Pinuela was charged with
estafa, a crime involving moral turpitude, he was not yet convicted.

FACTS: - Pinuela was then illegally dismissed for lack of just cause.
1. Pinuela was employed in United Polyresins Inc (UPI). He then became a member of
Polyresins Rank and File Association (PORFA) and was elected as a president. It was
provided in the CBA that UPI shall grant 300k to PORFA for establishment of a cooperative RULING: CA decision affirmed.
and that this loan shall be due at the expiration of the CBA.
2. When Pinuela received the financial records from the former union President, he hired an
accountant to conduct an audit. It was found that there are discrepancies in the documents
and that union’s finances were not properly documented.
3. Days before the expiration of the CBA, UPI, Pinuela, and other union officers met to
discuss proposed new CBA, but UPI refused in light of the unpaid 300k. The latter also said
that if the amount would not be paid, it shall be deducted from the union members’
salaries.
4. An election was then held in the union. During the investigation conducted by new
officers, Pinuela admitted that there were no more funds as they were used for the
prosecution of cases during his incumbency. It was also discovered that PORFA’s bank
account had already been closed.
5. New officers issued a resolution expelling Pinuela from PORFA on the ground of
misappropriating the union funds. Consequently, UPI terminated Pinuela’s employment in
light of the Union Security Clause. The latter then filed an illegal dismissal.
6. CA: When an employer exercises its power to terminate an employee by enforcing the
union security clause, it needs to determine and prove the following: (1) the union security
clause is applicable; (2) the union is requesting for the enforcement of the union security
provision in the CBA; and (3) there is sufficient evidence to support the decision of the