NEECO

The Board of Directors of the company adopted Policy No. 3-33, which set the guidelines for
NEECO I’s retirement benefits. Accordingly, all regular employees were ordered to accomplish
Form 87, which were applications for either reinstatement, resignation, or separation from
service. It was established during the trial that the approval of the employees application for
retirement was not done in succession according to the list, but according to the choice of the
company, and for which, complainants were singled out from the list because they were union
officers, past officers and active members of the complainant Association. Hence, moral
damages are being claimed.
Held: Yes, moral damages may be granted. A cooperative promotes the welfare of its own
members. The economic benefits filter to the cooperative members. They help promote
economic democracy and support community development. The dismissal of cooperative
members, merely because they are members of such, can be a ground for awarding moral
damages. (no other issues in this case relating to cooperatives but this. The other issue relates to
appeal)

Oca
During the National Convention of PTGWO (Union), Dinglasan, Jr. was elected National
President while Roberto M. Oca, Jr. was elected National Executive Vice President. The 2
however did not go along well. The groups of Dinglasan and Oca held their respective
conventions at different venues and elected their own set of officers. Another faction surfaced
when a group, headed by Rullamas, claims that it wants to secede from the faction of Dinglasan.
Held: Elementary is the rule that the Constitution and By-laws of an organization serve as a
contract that binds its members. The call for "a special Board meeting to fix the special
convention" made by the National Secretary, Johnny Oca, was anomalous since only the
National President of the Union was empowered to call a special Board Meeting. Both
conventions however violate the provision in the by-laws providing for a 60 day period after the
Convention within which the election must be made. Hence, both invalid.
However, the decision of the Labor Director ordering the parties to “secure new
registration certificates as Philippine Transport and General Workers Organization PTGWO-Oca
and Philippine Transport and General Workers Organization PTGWO-Dinglasan” is without
basis. No provision in the Labor Code sanctions such an act. For the cancellation of a labor
union's certificate of authority under Article 239 of the Labor Code, the causes provided therein
must be substantially proved, with the requisite notices given and hearings held.