By Atty. Julius Gregory B. Delgado

JULIUS USON VS. PLDT EMPLOYEES CREDIT COOPERATIVE, INC., ET AL., G.R. NO. 253149 (FEBRUARY 8,
2023): DISMISSAL OF THE GENERAL MANAGER OF A COOPERATIVE, NOT A LABOR DISPUTE BUT AN
INTRA-COOPERATIVE DISPUTE COGNIZABLE BY THE COOPERATIVE DEVELOPMENT AUTHORITY

Petitioner Julius Uson (“petitioner Uson”) has been a member and held various positions at the
PLDT Employees Credit Cooperative, Inc. (“PECCI”). On 10 October 2013, PECCI’s Board of Directors
passed a resolution appointing petitioner Uson as Acting General Manager. His appointment as General
Manager was formalized by the Board of Directors on 19 May 2014. On 21 May 2014, PECCI released a
Management Advisory announcing petitioner Uson’s promotion as General Manager. Petitioner Uson’s
tenure as General Manager began on 22 May 2014 and his appointment was ratified by the PECCI
Representative General Assembly on 28 March 2015. However, on 17 April 2017, the Board of Directors
declared all appointive positions, including that of the General Manager, vacant. This contentious Board
Resolution was approved by the majority of the incumbent Directors. On 20 April 2017, a Letter was
sent to petitioner Uson requiring him to turn over all PECCI’s properties which were in his possession or
control. Thereafter, a Memorandum naming Santos, Siy, Dawis and Navarra as the newly appointed
Directors of PECCI, was circulated.
Petitioner Uson filed a complaint for Illegal Dismissal with the National Labor Relations
Commission. Respondents PECCI and the newly appointed Directors, in their Position Paper, alleged that
the matter is within the jurisdiction of the Cooperative Development Authority being an intra-
cooperative dispute. The Labor Arbiter ruled that petitioner Uson is a regular employee and awarded
him monetary compensation. Both parties filed their appeal before the NLRC proper with petitioner
Uson praying for modification of his money claims and prayed for reinstatement. NLRC affirmed with
modification the ruling of the Labor Arbiter and dismissed the appeal of respondent PECCI. In a Petition
for Certiorari, the Court of Appeals reversed and set aside the rulings of the Labor Arbiter and the NLRC
stating that they have no jurisdiction over the dispute and that the subject matter, being an intra-
cooperative dispute between petitioner Uson and incumbent Directors, should be lodged with the CDA.
The Supreme Court held that PECCI is a cooperative that is registered with the CDA and existing
under the laws of the Republic of the Philippines. The Cooperative Code is the law that governs
cooperatives. Therefore, the Cooperative Code applies to PECCI, its officers, members, and any inter-
cooperative dispute that may arise. Based on the Cooperative Code, disputes are generally settled
through conciliation or mediation mechanisms embodied in the by-laws of the cooperatives and in
applicable laws. If the conciliation or mediation fails, the matter shall be settled by voluntary arbitration
before the CDA.
The Court also held that the cases cited by petitioner Uson is inapplicable as the subject thereof
was an employee not an officer of the Cooperative. To be considered an officer of the Cooperative, the
following must concur: 1) the office must be created by the charter or by the by-laws of the cooperative;
and 2) the officer must be elected by the board of directors. In the case at bar, petitioner Uson’s
position as General Manager was created by the By-Laws of PECCI, and he was elected as General
Manager by the PECCI Board of Directors. Consequently, petitioner Uson’s dismissal from office is an
intra-cooperative dispute which is beyond the jurisdiction of the labor tribunals. No less than PECCI’s By-
Laws expressly provides that a General Manager is an officer of PECCI. Likewise, it provides that PECCI’s
Board of Directors has the power to appoint the General Manager to a full-time position and to fix the
General Manager’s compensation and tenure. Hence, being cognizable by the CDA, the Labor Arbiter

and the NLRC did not have jurisdiction over the subject matter and their rulings are considered null and
void.