Why exclude confidential employees from labor organizations?

By the very nature of their functions, they assist and act in a confidential capacity to, or have access to confidential matters of, persons who exercise managerial functions in the field of labor relations. (Hence, there is a fiduciary and confidential relationship between manager and employer.) It is not far-fetched that in the course of Collective Bargaining, they might jeopardize that interest which they are duty bound to protect. (Metrolab Industries Inc. v. Roldan-Confessor; G.R. No. 108855) Employees should not be placed in a position involving a potential conflict of interests. Management should not be required to handle labor relations matters through employees who are represented by the union with which the company is required to deal and who in the normal performance of their duties may obtain advance information of the company’s position with regard to contract negotiations, the disposition of grievances, or other labor relations matters. (San Miguel Supervisors and Exempt Union v. Laguesma; G.R. No. 110399)

The disqualification of managerial and confidential employees from joining a bargaining unit for rank and file employees is already well-entrenched in jurisprudence. While Article 245 of the Labor Code limits the ineligibility to join, form and assist any labor organization to managerial employees, jurisprudence has extended this prohibition to confidential employees or those who by reason of their positions or nature of work are required to assist or act in a fiduciary manner to managerial employees and hence, are likewise privy to sensitive and highly confidential records. (Standard Chartered Bank Employees Union v SCB; G.R. No. 161933)

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