BPI v. BPI Employees (G.R. No. 164301; August 10, 2010)

CASE DIGEST: Bank of the Philippine Islands v. BPI Employees Union Davao Chapter. BPI v. BPI Employees (G.R. No. 164301; August 10, 2010).

FACTS: BPI and FEBTC entered into a plan of merger where FEBTC absorbed FEBTC, including its employees. The existing CBA of BPI has a union shop clause where all new employees are required to join the exclusive bargaining agent as a condition for their continued employment.

Some of the absorbed employees from FEBTC refused to join the union for the reason that they are not considered new employees.

ISSUE: Are absorbed employees in case of a merger considered new employees for the purposes of a union shop clause?

HELD: Yes. The Union Shop Clause in the CBA simply states that "new employees" who during the effectivity of the CBA "may be regularly employed" by the Bank must join the union within thirty (30) days from their regularization. There is nothing in the said clause that limits its application to only new employees who possess non-regular status, meaning probationary status, at the start of their employment. Petitioner likewise failed to point to any provision in the CBA expressly excluding from the Union Shop Clause new employees who are "absorbed" as regular employees from the beginning of their employment. What is indubitable from the Union Shop Clause is that upon the effectivity of the CBA, petitioner new regular employees (regardless of the manner by which they became employees of BPI) are required to join the Union as a condition of their continued employment.