Title V COVERAGE Article 243. Coverage and employees’ right to self-organization.

– All persons employed in commercial, industrial and agricultural enterprises and in religious, charitable, medical, or educational institutions, whether operating for profit or not, shall have the right to self-organization and to form, join, or assist labor organizations of their own choosing for purposes of collective bargaining. Ambulant, intermittent and itinerant workers, self-employed people, rural workers and those without any definite employers may form labor organizations for their mutual aid and protection. (As amended by Batas Pambansa Bilang 70, May 1, 1980). ________ 1. ORGANIZING IN GENERAL The rights to organize and to bargain, in a general sense, are given not exclusively to employees. Even workers who are not employees of any particular employer may form their organizations to protect their interests. Under Art. 243 of this Code, the right to organize refers also to forming, joining or assisting a labor organization. Connected to Art. 246 this right carries with it the right to engage in group action, provided it is peaceful, to support the organization’s objective which is not necessarily bargaining but, simply, to aid and protect its members. But this kind of group action must be differentiated from strike which, because it is work stoppage, must observe certain regulation; otherwise, the strike may be declared illegal and its leaders may be thrown out of their jobs. 1.1 Coverage of the Right to Organize; Exceptions The right to form, join or assist a labor organization is granted to all kinds of employees of all kinds of employers—public or private, profit or non-profit, commercial or religious. Their usual form of organization is a union and the usual purpose is collective bargaining with their employers. But the seemingly all-inclusive coverage of “all persons” in Article 243 actually admits exceptions. Under Art. 245, for instance, managerial employees, regardless of the kind of organization where they are employed, may not join, assist or form any labor organization, meaning a labor union. Accordingly, managerial employees cannot, in the absence of an agreement to the contrary, be allowed to share in the concessions obtained by the labor union through collective negotiation. Otherwise, they would be exposed to the temptation of colluding with the union during the negotiations to the detriment of the employer. However, there is nothing to prevent the employer from granting benefits to managerial employees equal to or higher than those afforded to union members. Supervisors are allowed to organize, but they cannot for, join or assist a rank-and-file union. 2. RIGHT TO ORGANIZE CANNOT BE BARGAINED AWAY Although we have upheld the validity of the CBA as the law among the parties, its provisions cannot override what is expressly provided by law that only managerial employees are ineligible to join, assist or

LABOR RELATIONS form any labor organization. Therefore, regardless of the challenged employees' designations, whether they are employed as Supervisors or in the confidential payrolls, if the nature of their job does not fall under the definition of "managerial" as defined in the Labor Code, they are eligible to be members of the bargaining unit and to vote in the certification election. Their right to self-organization must be upheld in the absence of an express provision of law to the contrary. It cannot be curtailed by a collective bargaining agreement. 3. EMPLOYEES OF NONPROFIT INSTITUTIONS Under Article 243 of the Labor Code, the rank-and-file employees of non-profit medical institutions are permitted to form, organize or join labor unions of their choice for purposes of collective bargaining. If the union has complied with the requisites provided by law for calling a certification election, it is incumbent upon the DOLE Regional Director to conduct such certification election to ascertain the bargaining representative of the hospital employees. 4. EXCEPTION: COOPERATIVE EMPLOYEE-MEMBERS OF A

A cooperative is by its nature different from an ordinary business concern being run either, by persons, partnerships or corporations. Its owners and/or members are the ones who run and operate the business while the others are its employees. As above stated, irrespective of the name of shares owned by its members they are entitled to cast one vote each in deciding upon the affair of the cooperative. Their share capital earn limited interests. They enjoy special privileges as exemption from income tax and sales taxes, preferential right to supply their products to State agencies and even exemption from minimum wage laws. An employee of such a cooperative who is a member and co-owner thereof cannot invoke the right to collective bargaining for certainly an owner cannot bargain with himself or his co-owners. However, in so far as it involves cooperatives with employees who are not members or co-owners thereof, certainly such employees are entitled to exercise the rights of all workers to organization, collective bargaining, negotiations and others as are enshrined in the Constitution and existing laws of the country. In another case, the court clarified that it is the fact of ownership of the cooperative, and not involvement in the management thereof, which disqualifies a member from joining any labor organization within the cooperative. Thus, irrespective of the degree of their participation in the actual management of the cooperative, all members thereof cannot form, assist or join a labor organization for the purpose of collective bargaining. But member-employees of a cooperative may withdraw as members of the cooperative in order to join a labor union. Membership in a cooperative is voluntary; inherent in it is the right not to join. 4.1 Exception to Exception: Association, not Union While the members of a cooperative who are also its employees cannot unionize for bargaining purposes, the law does not prohibit them from forming an association for their mutual aid and protection as employees.

LABOR RELATIONS D.O. No. 40-03 allows and defines a “workers’ association” as one which is organized for the mutual aid and protection of its members or for any legitimate purpose other than collective bargaining. 5. EXCEPTION: INTERNATIONAL ORGANIZATIONS A certification election cannot be conducted in an international organization which the Philippine Government has granted immunity from local jurisdiction. The grant of such immunity is a political question whose resolution by the executive branch of government is conclusive upon the courts
(1) “International Organization” and “Specialized Agencies”—The term "international organization" is generally used to describe an organization set up by agreement between two or more states. Under contemporary international law, such organizations are endowed with some degree of international legal personality such that they are capable of exercising specific rights, duties and powers. They are organized mainly as a means for conducting general international business in which the member states have an interest. The United Nations, for instance, is an international organization dedicated to the propagation of world peace. "Specialized agencies" are international organizations having functions in particular fields. The term appears in Articles 57 and 63 of the Charter of the United Nations. (2) Principles Underlying the Grant of International Immunities to International Organizations—There are basically three propositions underlying the grant of international immunities to international organizations. These principles, contained in the ILO Memorandum are stated thus: 1) international institutions should have a status which protects them against control or interference by any one government in the performance of functions for the effective discharge of which they are responsible to democratically constituted international bodies in which all the nations concerned are represented; 2) no country should derive any national financial advantage by levying fiscal charges on common international funds; and 3) the international organization should, as a collectivity of States members, be accorded the facilities for the conduct of its official business customarily extended to each other by its individual member States. The theory behind all three propositions is said to be essentially institutional in character. "It is not concerned with the status, dignity or privileges of individuals, but with the elements of functional independence necessary to free international institutions from national control and to enable them to discharge their responsibilities impartially on behalf of all their members. The raison d'etre for these immunities is the assurance of unimpeded performance of their functions by the agencies concerned. (3) Labor’s Basic Rights Remain—The immunity of International Catholic Migration Commission (ICMC) and the International Rice Research Institution (IRRI) from local jurisdiction by no means deprives labor of its basic rights, which are guaranteed by Article II, Section 18, Article III, Section 8, and Article XIII, Section 3, of the 1987 Constitution; and implemented by Articles 243 and 246 of the Labor Code. (4) Certification Election Barred by Immunity—The immunity granted being "from every form of legal process except in so far as in any particular case they have expressly waived their immunity," it is inaccurate to state that a certification election is beyond the scope of that immunity for the reason that it is not a suit against ICMC. A certification election cannot be viewed as an independent or isolated process. It could trigger off a series of events in the collective bargaining process together with related incidents and/or concerted activities, which could inevitably involve ICMC in the "legal process," which includes “any penal, civil and administrative proceedings.” The eventuality of Court litigation is neither remote and from which international organizations are precisely shielded to safeguard them from the disruption of their functions. Clauses on jurisdictional immunity are said to be standard provisions in the constitutions of international Organizations. “The immunity covers the organization concerned, its property and its assets...”

5.1 Waiver of Immunity Waiver of its immunity is discretionary to IRRI. Without such express waiver the NLRC or its labor arbiters have no jurisdiction over IRRI even in cases of alleged illegal dismissal of any of its employees. 5.2 Foreign Workers
Foreigners, whether natural or juridical, as well as foreign corporations are strictly prohibited from engaging directly or indirectly in all forms of trade union activities. However, aliens working in the country with valid work permits may exercise the right to self-organization if they are nationals of a country that grants the same or similar rights to Filipino workers. (Art. 269)

6. EXCEPTION: RELIGIOUS OBJECTORS; IGLESIA NI CRISTO MEMBERS Under the Industrial Peace Act (1953) which preceded the Labor Code (and even under the present Code) the employer and the union could enter into a “closed shop” agreement which would compel employees to become union workers as a condition of continued employment. But in 1961 R.A. No. 3350 was passed to exempt from such compulsory union membership the followers of any religious sect (such as the Iglesia ni Cristo) whose teachings forbid membership in labor unions. The constitutionality of R.A. No. 3350 was upheld by the Supreme Court in Victoriano v. Elizalde. It may not be amiss to point out here that the free exercise of religious profession or belief is superior to contract rights. In case of conflict, the latter must, therefore, yield to the former. 6.1 Does the Exemption Still Stand? 6.2 Iglesia Ni Cristo Members May Form and Join Own Union ________ Article 244. Right of employees in the public service. – Employees of government corporations established under the Corporation Code shall have the right to organize and to bargain collectively with their respective employers. All other employees in the civil service shall have the right to form associations for purposes not contrary to law. (As amended by Executive Order No. 111, December 24, 1986). ________ 1. GOVERNMENT EMPLOYEES’ RIGHT TO ORGANIZE; LIMITATIONS The highest law of the land guarantees to government employees the right to organize and to negotiate, but not the right to strike. 1.1 Limited Purpose The extent of the government employees' right of self-organization differs significantly from that of employees in the private sector. The latter's right of self-organization, i.e., "to form, join or assist labor organizations for purposes of collective bargaining," admittedly includes the right to deal and negotiate with their respective employers in order to fix the terms and conditions of employment and also, to engage in concerted activities for the attainment of their objectives, such as strikes, picketing, boycotts. But the right of government employees to "form, join or assist employees organizations of their own choosing" under Executive Order No. 180 is not regarded as existing or available for "purposes of collective

LABOR RELATIONS bargaining," but simply "for the furtherance and protection of their interests." In other words, the right of Government employees to deal and negotiate with their respective employers is not quite as extensive as that of private employees. Excluded from negotiation by government employees are the "terms and conditions of employment...that are fixed by law," it being only those terms and conditions not otherwise fixed by law that "may be subject of negotiation between the duly recognized employees' organizations and appropriate government authorities."
Declared to be 'not negotiable' are matters "that require appropriation of funds;" e.g., increase in salary emoluments and other allowances, car plan, special hospitalization, medical and dental services, increase in retirement benefits (Sec. 3, Rule VIII), and those "that involve the exercise of management prerogatives;" e.g., appointment, promotion, assignment/detail, penalties as a result of disciplinary actions, etc. (Sec. 4, Id.) Considered negotiable are such matters as schedule of vacation and other leaves, work assignment of pregnant women; recreational, social, athletic, and cultural activities and facilities, etc. (Sec. 2, Id.). exercised in accordance with law, i.e. are subject both to "Civil Service Law and rules" and "any legislation that may be enacted by Congress," that "the resolution of complaints, grievances and cases involving government employees" is not ordinarily left to collective bargaining or other related concerted activities, but to "Civil Service Law and labor laws and procedures whenever applicable;" and that in case "any dispute remains unresolved after exhausting all available remedies under existing laws and procedures, the parties may jointly refer the dispute to the (Public Sector Labor-Management) Council for appropriate action." What is more, the Rules and Regulations implementing Executive Order No. 180 explicitly provide that since the "terms and conditions of employment in the government, including any political subdivision or instrumentality thereof and government-owned and controlled corporations with original charters are governed by law, the employees therein shall not strike for the purpose of securing changes thereof.

2. REGISTRATION
Sec. 7. Government employees' organizations shall register with the Civil Service Commission and the Department of Labor and Employment. The application shall be filed with the Bureau of Labor Relations of the Department which shall process the same in accordance with the provisions of the Labor Code of the Philippines, as amended. Applications may also be filed with the Regional Offices of the Department of Labor and Employment which shall immediately transmit the said applications to the Bureau of Labor Relations within three (3) days from receipt thereof. Sec. 8. Upon approval of the application, a registration certificate be issued to the organization recognizing it as a legitimate employees' organization with the right to represent its members and undertake activities to further and defend its interest. The corresponding certificates of registration shall be jointly approved by the Chairman of the Civil Service Commission and Secretary of Labor and Employment. (E.O. No. 180)

1.2 No Signing Bonus Employees and officers of SSS are not entitled to the signing bonus provided for in the collective negotiation agreement because the process of collective negotiations in the public sector does not encompass terms and conditions of employment requiring the appropriation of public funds. The Court reminds the Social Security Commission officials that the SSS fund is not their money 1.3 Excepted Employees Excepted from the application of Executive Order 180, however, are “members of the Armed Forces of the Philippines, including police officers, policemen, firemen, and jail guards” (Sec. 4). For reasons of security and safety, they are not allowed to unionize. A “high level employee” is one “whose functions are normally considered policy determining, managerial or one whose duties are highly confidential in nature. A managerial function refers to the exercise of powers such as: (1) to effectively recommend such managerial actions; (2) to formulate or execute management policies and decisions; or (3) to hire, transfer, lay-off, recall, dismiss, assign or discipline employees. 1.3a Professors as rank-and-file employees Professors at the University of the Philippines who are not exercising managerial or highly confidential functions are rank-and-file employees and may unionize separately from the non-academic personnel. In short, the professors, associate professors and assistant professors of the University of the Philippines are rank-and-file employees. The full professors, associate professors, assistant professors, instructors and the research, extension and professional staff may, if so minded, organize themselves into a separate collective bargaining unit. 1.4 Right to Strike
EO No. 180 also concedes to government employees, like their counterparts in the private sector, the right to engage in concerted activities, including the right to strike, the executive order is quick to add that those activities must be

3. CERTIFICATION CORPORATION

ELECTION

IN

GOVERNMENT

A certification election to choose the union that will represent the employees may be conducted by the Bureau of Labor Relations in a government corporation, whether governed by the Labor Code or the Civil Service rules. 3.1 Election of Officers in Government Unions It is quite clear from this provision that BLR has the original and exclusive jurisdiction on all inter-union and intra-union conflicts. An intra-union conflict would refer to a conflict within or inside a labor union, and an inter-union controversy or dispute, one occurring or carried on between or among unions. The subject of the case at bar, which is the election of the officers and members of the board of KMKK-MWSS, is, clearly, an intra-union conflict, being within or inside a labor union. It is well within the powers of the BLR to act upon. 4. WHEN PSLMC MAY RULE ON LEGALITY OF DISMISSAL The Public Sector Labor-Management Council, created by Executive Order No. 180 (June 1, 1987) has jurisdiction to hear charges of unfair labor practice filed by government employees against their employer, e.g., the Pamantasan ng Lungsod ng Maynila. In deciding the ULP charge the PSLMC may also rule on the complainants’ dismissal if the two issues—ULP and dismissal—are unavoidably interlinked. 5. UNION-BUSTING IN A GOVERNMENT AGENCY, U.L.P. 5.1 Even Temporary Employees May Organize

LABOR RELATIONS Even temporary employees enjoy the basic right to form organization or association for purposes not contrary to law. Under Art. 277(c) of the Labor Code, “any employee, whether employed for a definite period of not, shall beginning on his first day of service, be considered an employee for purposes of membership in any labor union.” ________ Article 245. Ineligibility of managerial employees to join any labor organization; Right of Supervisory Employees. - Managerial employees are not eligible to join, assist or form any labor organization. Supervisory employees shall not be eligible for membership in the collective bargaining unit of the rank-and-file employees but may join, assist or form separate collective bargaining units and/or legitimate labor organizations of their own. The rank-andfile union and the supervisors’ union operating within the same establishment may join the same federation or national union. (As amended by Section 18, Republic Act No. 6715, March 21, 1989 and Section 8, Republic Act No. 9481 which lapsed into law on May 25, 2007 and became effective on June 14, 2007). ________ 1. CATEGORIES OF EMPLOYEES RA 6715 which took effect on March 21, 1989 (15 days after its publication in the "Philippines Daily Inquirer") provides that although "supervisory employees shall not be eligible for membership in a labor organization of the rank and file employees," they may, however, "join, assist or form separate labor organization of their own." 2. INELIGIBILITY OF MANAGERS 2.1 Types of Managerial Employees
The term "manager" generally refers to "anyone who is responsible for subordinates and other organizational resources." As a class, managers constitute three levels of a pyramid, namely, top management, middle management, and first-line management which is also called supervisor. Below this third level are the operatives or operating employees who, we may add, are also called rank-and-file. FIRST-LINE MANAGERS — The lowest level in an organization at which individuals are responsible for the work of others is called first-line or firstlevel management. First-line managers direct operating employees only; they do not supervise other managers. Examples of first-line managers are the "foreman" or production supervisor in a manufacturing plant, the technical supervisor in a research department, and the clerical supervisor in a large office. First-level managers are often called supervisors. MIDDLE MANAGERS — The term middle management can refer to more than one level in an organization. Middle managers direct the activities of other managers and sometimes also those of operating employees. Middle managers' principal responsibilities are to direct the activities that implement their organizations' policies and to balance the demands of their superiors with the capacities of their subordinates. A plant manager in an electronics firm is an example of a middle manager. TOP MANAGERS — Composed of a comparatively small group of executives, top management is responsible for the overall management of the organization. It establishes operating policies and guides the organization's interactions with its environment. Typical titles of top managers are "chief executive officer," "president," and "senior vice-president." Actual titles vary from one organization to another and are not always a reliable guide to membership in the highest management classification. As can be seen from this description, a distinction exists between those who have the authority to devise, implement and control strategic and operational policies (top and middle managers) and those whose task is simply to ensure that such policies are carried out by the rank-and-file employees of an organization (first-level managers/supervisors). What distinguishes them from the rank-and-file employees is that they act in the interest of the employer in supervising such rank-and-file employees. "Managerial employees" may therefore be said to fall into two distinct categories: the "managers" per se, who compose the former group described above, and the "supervisors" who form the latter group. Whether they belong to the first or the second category, managers, vis-a-vis employers, are, likewise, employees.

2.2 Constitutionality of the Prohibition The question is whether the first sentence of Art. 245 of the Labor Code, prohibiting managerial employees from forming, assisting or joining any labor organization, is constitutional in light of Art. III, Sec. 8 of the Constitution which provides:
The right of the people, including those employed in the public and private sectors, to form unions, association, or societies for purposes not contrary to law shall not be abridged.

The present Article 245 is the result of the amendment of the Labor Code in 1989 by R.A. No. 6715, otherwise known as the HerreraVeloso Law. Unlike the Industrial Peace Act or the provisions of the Labor Code which it superseded, R.A. No. 6715 provides separate definitions of the terms "managerial" and "supervisory employees" (See Art. 212[m]). Although the definition of "supervisory employees" seems to have been unduly restricted to the last phrase of the definition in the Industrial Peace Act, the legal significance given to the phrase "effectively recommends" remains the same. In fact, the distinction between top and middle managers, who set management policy, and front-line supervisors, who are merely responsible for ensuring that such policies are carried out by the rank and file, is articulated in the present definition.
The rationale for this inhibition has been stated to be, because if these managerial employees would belong to or be affiliated with a Union, the latter might not be assured of their loyalty to the Union in view of evident conflict of interests. The Union can also become company-dominated with the presence of managerial employees in Union membership.

2.2a Other Opinions
Justice Puno further airs a warning: “To declare Article 245 of the Labor Code unconstitutional cuts deep into our existing industrial life and will open the floodgates to unionization at all levels of the industrial hierarchy. Such a ruling will wreak havoc on the existing set-up between management and labor. If all managerial employees will be allowed to unionize, then all who are in the payroll of the company, starting from the president, vice-president, general managers and everyone, with the exception of the directors, may go on strike or picket the employer. Company officers will join forces with the supervisors and rank-and-file.”

3. EVOLUTION OF SUPERVISORS’ RIGHT TO ORGANIZE Unlike managers, supervisors can unionize. 3.1 First Period: Under the Industrial Peace Act

LABOR RELATIONS The problem was that although the Industrial Peace Act defined a “supervisor,” it failed to define a “manager” or “managerial employee.” So the question arose: Did the word “supervisor” include “manager”? Could managers also unionize? In a case involving Caltex managers, the Court answered affirmatively. 3.2 Second Period: Under the Labor Code Before Amendment by R.A. No. 6715 This time the question was: Did ‘managerial employee” include “supervisor”? Were supervisors also banned from unionizing? Yes. The prohibition was applied to supervisors in the case of Bulletin Publishing Corp. V. Sanchez, 144 SCRA 428, decided on October 7, 1986. 3.3 Third Period: Under the Labor Code as Amended by RA 6715 R.A. No. 6715 presents a compromise formula: retain the ineligibility of managerial employees but revive the right of supervisory employees to unionize. 4. DEFINITION OF MANAGER AND SUPERVISOR Unlike in the Industrial Peace Act and the Labor Code before such amendment, the power to decide on managerial acts is now separated from the power to recommend those managerial acts, such as laying down policy, hiring or dismissing employees, etc. A supervisor has the power only to recommend while a managerial employee has the power to decide and do those acts. But to make one a supervisor, the power to recommend must not be merely routinary or clerical in nature but requires the use of independent judgment. In other words, the recommendation is (1) discretionary or judgmental (not clerical), (2) independent (not a dictation of someone else), and (3) effective (given particular weight in making the management decision). If these qualities are lacking or, worse, if the power to recommend is absent, then the person is not really a supervisor but a rank-and-file employee and therefore belongs or should belong to a rank-and-file organization. Similarly, a so-called manager, no matter how his position is titled, is not really a manager in the eyes of the law if he does not possess managerial powers (to lay down and execute management policies and/ or to hire, transfer, suspend, lay-off, recall, discharge, assign or discipline employees). If he can only recommend the exercise of any of these powers, he is only a supervisor, hence, may join, assist or form a supervisors’ organization. 5. TEST OF SUPERVISORY STATUS
The test of "supervisory" or "managerial status" depends on whether a person possesses authority to act in the interest of his employer in the matter specified in Article 212 (k) of the Labor Code and Section 1 (m) of its Implementing Rules and whether such authority is not merely routinary or clerical in nature, but requires the use of independent judgment. Thus, where such recommendatory powers as in the case at bar, are subject to evaluation, review and final action by the department heads and other higher executives of the company, the same, although present, are not effective and not an exercise of independent judgment as required by law. It is the nature of an employee's functions and not the nomenclature or title given to his job which determines whether he has rank-and-file or managerial status. Among the characteristics of managerial rank are: (1) He is not subject to the rigid observance of regular office hours; (2) His work requires the consistent exercise of discretion and judgment in its performance; (3) the output produced or the result accomplished cannot be standardized in relation to a given period of time; (4) He manages a customarily recognized department or subdivision of the establishment, customarily and regularly directing the work of other employees therein; (5) He either has the authority to hire or discharge other employees or his suggestions and recommendations as to hiring and discharging, advancement and promotion or other change of status of other employees are given particular weight; and (6) As a rule, he is not paid hourly wages nor subjected to maximum hours of work.

5.1 The Power to Recommend The power to recommend, in order to qualify an employee as a supervisor, must not only be effective but should require the use of independent judgment. It should not be merely of a routinary or clerical nature. 5.2 Examples of Ineffective or Clerical Recommendation 6. SEGREGATION OF RANK-AND-FILE AND SUPERVISORS Article 245 allows supervisory employees to form, join, or assist separate labor organizations of their own, but they are not eligible for membership in a labor organization of the rank-and-file employees. Neither may a rank-and-file join a union of supervisors. This policy of segregating the supervisors’ union from that of the rank-and-file is founded on fairness to the employees themselves. It will be doubly detrimental to the employer if the supervisors and the rank-and-file, as members of only one union, could take a common stand against the employer. 6.1 Effects of Having Mixed Membership A union whose membership is a mixture of supervisors and rank-andfile is not and cannot become a legitimate labor organization. It cannot petition for a certification election, much less ask to be recognized as the bargaining representative of employees.
The Labor Code has made it a clear statutory policy to prevent supervisory employees from joining labor organizations consisting of rank-and-file employees as the concerns which involve members of either group are normally disparate and contradictory. Clearly, based on Article 245, a labor organization composed of both rankand-file and supervisory employees is no labor organization at all. It cannot, for any guise or purpose, be a legitimate labor organization. Not being one, an organization which carries a mixture of rank-and-file and supervisory employees cannot possess any of the rights of a legitimate labor organization, including the right to file a petition for certification election for the purpose of collective bargaining. It becomes necessary, therefore, anterior to the granting of an order allowing a certification election, to inquire into the composition of any labor organization whenever the status of the labor organization is challenged on the basis of Article 245 of the Labor Code. The rationale behind the Code's exclusion of supervisors from unions of rankand-file employees is that such employees, while in the performance of supervisory functions, become the alter ego of management in the making and the implementing of key decisions at the sub-managerial level. Certainly, it would be difficult to find unity or mutuality of interests in a bargaining unit consisting of a mixture of rank-and-file and supervisory employees. And this is so because the fundamental test of a bargaining unit's acceptability is whether or not such a unit will best advance to all employees within the unit the proper exercise of their collective bargaining rights. The Code itself has recognized this, in preventing supervisory employees from joining unions of rank-and-file employees.

6 Restriction in Affiliation Clarified in De La Salle First. in the event of a strike. when they recommend action implementing management policy or ask for the discipline or dismissal of subordinates. or care and protection of the employer's property. "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. form and assist any labor organization to managerial employees. The confidential-employee rule justifies exclusion of confidential employees because in the normal course of their duties they become aware of management policies relating to labor relations. if the intent of the law is to avoid a situation where supervisors would merge with the rank and-file or where the supervisors' labor organization would represent conflicting interests. are likewise privy to sensitive and highly confidential records. CONFIDENTIAL EMPLOYEES 7. the unions of the supervisors and of the ran-and-file should be segregated.4 Cancellation of Union Registration on Ground of Inclusion of Disqualified Positions: What needs to be Proved What is essential is the nature of the employee’s function and not the nomenclature or title given to the job which determines whether the employee has rank-and-file or managerial status or whether he is a supervisory employee. It must be stressed. Moreover. then a local supervisors' union should not be allowed to affiliate with the national federation of union of rank-andfile employees where that federation actively participates in union activity in the company. persons who exercise managerial functions in the field of labor relations. 7. The doctrine of necessary implication means that what is implied in a statute is as much a part thereof as that which is expressed. 7. 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. assist or join a labor union equally applies to them. Members of the supervisory union might refuse to carry out disciplinary measures against their co-member rank-and-file employees. their interests cannot be considered identical. the disqualification of managerial employees equally applies to confidential employees.4d The Labor Nexus The broad rationale behind this rule is that employees should not be placed in a position involving a potential conflict of interests. confidential employees are similarly disqualified.4b The Metrolab and Meralco Summations: Exclusion from Bargaining unit and Closed-shop Clause Although Article 245 of the Labor Code limits the ineligibility to join. handling. the petition for certification election is not the proper forum to raise the issue of legal personality of the union. while the federation is deemed to be merely their agent.3 Third Swing: Inclusion Among Supervisors 6.2 How Many? How Few? 7. the national federation is actively involved in union activities in the company. In the area of bargaining. 6. persons who exercise managerial functions in the field of labor relations. As such. the rank-and-file employees are directly under the authority of the supervisory employees. Confidential employees are 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.2 Second Swing: Exclusion from Rank-and-File Art. the local unions are considered as the principals. the national federation might influence the supervisors' union to conduct a sympathy strike on the sole basis of affiliation. 245 of the Labor Code singles out managerial employees as ineligible to join. If these two conditions are absent. The implementing Rules state that the legal personality of the petitioner union cannot be subject to collateral attack “but may be questioned only in an independent petition for cancellation. under the doctrine of necessary implication. however. The affiliation of two local unions in a company with the same national federation is not by itself a negate-on of their independence since in relation to the employer. or have access to confidential matters of. We agree with the petitioner's contention that a conflict of interest may arise in the areas of discipline. 7. Thus. or have access to confidential matters of. are likewise privy to sensitive and highly confidential records. they assist and act in a confidential capacity to. the disposition of grievances. 245 of the Labor Code does not directly prohibit confidential employees from engaging in union activities." 6. However. the rule prohibiting supervisors from affiliating with the mother union of the rank-and-file union does not apply. the rationale behind the ineligibility of managerial employees to form. By the very nature of their functions. or other labor relations matters. that when the employee does not have access to confidential labor relations information.3 Illegal Mixed Membership Must Be Raised and Proved 7. assist or form any labor organization. Second. The needs of one are different from those of the other.4 Fourth Swing: Inclusion Among Monthly Paid Rank-and-File 6.4c Who Are Confidential Employees? Confidential employees assist and act in a confidential capacity to. or with the custody.5 Affiliation of Supervisors and Rank-and-File Unions Even in affiliating with a federation. they identify with the interests of the employer and may act contrary to the interests of the rank-and-file. Doctrine of Necessary Implication A confidential employee is one entrusted with confidence on delicate matters. 7.” To summarize. While Art.4a Limited Exclusion. Also. The peculiar role of supervisors is such that while they are not managers. 7. a petition to cancel union registration cannot be heard or decided by the Med-Arbiter but either the DOLE Regional Director for enterpriselevel or the BLR Director for national unions. collective bargaining and strikes.1 First Swing: Inclusion Among Rank-and-File 7. under the doctrine of necessary implication. there is no legal prohibition .LABOR RELATIONS 6.

The inclusion as union members of employees outside the bargaining unit shall not be a ground for the cancellation of the registration of the union. (As amended by Batas Pambansa Bilang 70. Concept of unfair labor practice and procedure for prosecution thereof. 9481 which lapsed into law on May 25. (Introduced as new provision by Section 9.4e New CBA may include employees excluded from old CBA. 2007 and became effective on June 14. The right to form labor organization is twin to the right to engage in concerted activities. . CONCEPT OF UNFAIR LABOR PRACTICE As noted at the start of Book V a major aim of labor relations policy is industrial democracy whose realization is most felt in free collective bargaining or negotiation over terms and conditions of employment. It includes at least two rights: (1) the right to form.against confidential employees from forming. that the right to self-organization is granted not only to employees but to “workers. assisting. join or assist labor organizations. During the pendency of such administrative proceeding. exemplary and other forms of damages. having been first obtained in the preceding paragraph. coerce. Consequently. employer or nonemployer. The “labor organization” may be a union or association of employees. Republic Act No. unfair labor practices are not only violations of the civil rights of both labor and management but are also criminal offenses against the State which shall be subject to prosecution and punishment as herein provided. the running of the period of prescription of the criminal offense herein penalized shall be considered interrupted: Provided.” whether workers or not. 6715. 7. or joining a union. first of all. ________ 1. They shall resolve such cases within thirty (30) calendar days from the time they are submitted for decision. which may include claims for actual. finally. however. must organize themselves. subject to the provisions of Article 264 of this Code. Non-abridgment of right to self-organization. discriminate against or unduly interfere with employees and workers in their exercise of the right to self-organization. Expired CBA may be Modified. If LABOR RELATIONS abridged in the workplace. including their right to bargain collectively and otherwise deal with each other in an atmosphere of freedom and mutual respect. unionist or non-unionist—may abridge these rights. the conceptual mother and the formidable fortress of the prohibition expounded in the next three articles. (As amended by Batas Pambansa Bilang 70. ________ 1. – It shall be unlawful for any person to restrain.” whether employed or not. they may now freely join a labor organization of the rank-and-file or that of the supervisory union. depending on their rank. And they are free to change their agreement: people excluded before may be included now. 2007). Said employees are automatically deemed removed from the list of membership of said union. But for bargaining negotiation to be true and meaningful. attorney’s fees and other affirmative relief. moral.) by saying not what it is but what it includes. Recovery of civil liability in the administrative proceedings shall bar recovery under the Civil Code. May 1. Subject to the exercise by the President or by the Secretary of Labor and Employment of the powers vested in them by Articles 263 and 264 of this Code. Republic Act No. Under RA 6715. March 21. is both (in mixed metaphors). ________ Title VI UNFAIR LABOR PRACTICES Chapter I CONCEPT Article 247. the abridgment is termed ULP (unfair labor practice). SECURITY GUARDS MAY JOIN RANK-AND-FILE OR SUPERVISORS UNION Under the old rules. join. are inimical to the legitimate interests of both labor and management. 1980). – Unfair labor practices violate the constitutional right of workers and employees to self-organization. No “person”—inside or outside of government. 1989). or vice versa. the employees. In fact. Its purposes may be collective bargaining (as stated in this Article) or dealing with the employer [as stated in Article 212(g)]. that the final judgment in the administrative proceedings shall not be binding in the criminal case nor be considered as evidence of guilt but merely as proof of compliance of the requirements therein set forth. and (2) the right to engage in lawful concerted activities. the right to form associations or societies is a right of the “people. disrupt industrial peace and hinder the promotion of healthy and stable labor-management relations. ________ Article 246. as mentioned in Article 212(g). shall be under the jurisdiction of the Labor Arbiters. ________ Article 245-A. or assist labor organizations for the purpose of collective bargaining through representatives of their own choosing and to engage in lawful concerted activities for the same purpose or for their mutual aid and protection. security guards were barred from joining a labor organization of the rank-and-file. constitutionally speaking. 1980 and later further amended by Section 19. Article 246. It is worth noting.O. the civil aspects of all cases involving unfair labor practices. 8. not just Renewed The employer and the union in an enterprise may negotiate and agree whom to cover in their CBA. No criminal prosecution under this Title may be instituted without a final judgment finding that an unfair labor practice was committed. Effect of inclusion as members of employees outside the bargaining unit. Because selforganization is a prerequisite—the lifeblood—of industrial . Such right shall include the right to form. May 1. The Labor Arbiters shall give utmost priority to the hearing and resolution of all cases involving unfair labor practices. CONCEPT OF THE RIGHT TO SELF ORGANIZATION This is a key article that offers an inclusionary definition of the right to self-organization (S.

247 ULP has civil as well as criminal aspects. restrain or coerce employees in the exercise of their rights to self-organization. The criminal charge. PROSECUTION OF U. Unfair labor practices of employers. dominate. Under Art.L. The victim of the offense is not just the workers as a body and the well-meaning employers who value industrial peace. proof beyond reasonable doubt is needed to convict in the criminal case of ULP. but the State as well. Without that element.” Art. If the ULP is committed by a labor organization the parties liable are those mentioned in Art. 248(i) by stating that violation of a CBA is unfair labor practice only if the violation is gross in character. no matter how unfair. Nothing in this Code or in any other law shall stop the parties from requiring membership in a recognized collective bargaining agent as a condition for employment. states Art. But such judgment will not serve as evidence of ULP in the criminal case. x x x that unfair labor practice cases involve violations of a public right or policy. 290) ________ Chapter II UNFAIR LABOR PRACTICES OF EMPLOYERS Article 248. 248(f) referring to dismissing or prejudicing an employee giving testimony under this Code [regardless of the subject of the testimony]. there is employer-employee relationship between the offender and the offended. when committed by the employer. the right to organize which is available only to employees in relation to their employer. to be prosecuted like criminal offenses whereas a breach of an obligation of the employer to his employee is only a contractual breach to be redressed like an ordinary contract or obligation.P. A showing of prejudice to public interest is not a requisite for ULP charges to prosper. unfair labor practice. 249. 2. (c) To contract out services or functions being performed by union members when such will interfere with. To prosecute ULP as criminal offense is not possible until after finality of judgment in the labor case. therefore. partnership. specifically in Articles 248 and 261 for an employer and Article 249 for a labor organization. except those employees who are already members of another union at the time of the signing of the collective bargaining agreement. and any act intended to weaken or defeat the right is regarded by law as an offense. The offense prescribes in one year. 212(k) emphatically defines “unfair labor practice” as “any unfair labor practice as expressly defined in this Code. although the offender may either be an employer or a labor organization.2 Prejudice to Public Interest not an Element of U. including the giving of financial or other support to it or its organizers or supporters. finding that the respondent indeed committed unfair labor practice. 289. The prohibited acts. it does not mean an unfair practice by labor but a practice unfair to labor.L. The same article defines the penalty of fine and/ or imprisonment. The only possible exception is Art. it follows that not every unfair act is “unfair labor practice. assist or otherwise interfere with the formation or administration of any labor organization. the penalty shall be imposed upon the guilty officers of a corporation.” ULP. hours of work and other terms and conditions of employment in order to encourage or discourage membership in any labor organization. a counteraction to. (e) To discriminate in regard to wages.1 Elements Commission of unfair labor practice at the enterprise level needs the presence of certain elements: first. the act done is expressly defined in the Code as an act of unfair labor practice. Under Art. . The first element is required because ULP is negation of. to be prosecuted in the same manner as a criminal offense. Art. A consideration of the entire law on the matter clearly discloses the intention of the lawmaker to consider acts which are alleged to constitute unfair labor practices as violations of the law or offenses. falls under the concurrent jurisdiction of the Municipal or Regional Trial Court. The reason for the distinction between an unfair labor practice case and a mere violation of an employer of its contractual obligation towards an employees is. Literally. (b) To require as a condition of employment that a person or an employee shall not join a labor organization or shall with-draw from one to which he belongs. 261 amplifies Art. 1. Employees of an appropriate bargaining unit who are not members of the recognized collective bargaining agent may be assessed a reasonable fee equivalent to the dues and other fees paid by members 1. has a limited. the criminal charge must be proved independently from the labor case. – It shall be unlawful for an employer to commit any of the following unfair labor practice: (a) To interfere with. (Art. Stripped of legalese. the right to self-organize has been enshrined in the Constitution.P. The offense is technically called “unfair labor practice” (ULP). while only substantial evidence is required in labor case in the NLRC. commonly connotes anti-unionism. The reason for this provision is that the commission of an unfair labor practice is an offense against a public right or interest and should be prosecuted in the same manner as a public offense. (d) To initiate. association or entity. It refers only to acts opposed to worker’s right to organize. The second element is that the act done is prohibited by the Code. The civil aspect may include liability for damages and these may be passed upon by a labor arbiter. Because ULP is and has to be related to the right to self-organization and to the observance of the CBA. technical meaning because it is a labor relations concept with a statutory definition. are all related to the worker’s self-organizational right and to the observance of a collective bargaining agreement (CBA). restrain or coerce employees in the exercise of their right to self-organization. is not unfair labor practice as legally defined. and second. the act.LABOR RELATIONS democracy. Thus. No organizational right can be negated or assailed if employer-employee relationship is absent in the first place. Moreover. 228. it should be stressed. the attack to this constitutional right is considered a crime which therefore carries both civil and criminal liabilities.

3 Grant of Profit-Sharing Benefits to Non-Union Members Management has the prerogative to regulate. 2. specific denomination of the act is not necessary to prosecute ULP. functioning or administration. 3.L. CHARGE Before an employee may be considered aggrieved by an alleged unfair labor practice (ULP) by an employer. either as a matter of procedure or of substantive law. This flows from the established rule that labor law does not authorize the substitution of the judgment of the employer in the conduct of its business. with the consent of the employer. It is the company’s prerogative to promote its employees to managerial positions. Workers shall enjoy adequate protection against acts of anti-union discrimination in respect of their employment. NO U. (As amended by Batas Pambansa Bilang 130. They did not assume the status of strikers. or as a refusal to bargain.1 Personnel Movements As a rule. In resolving the question of whether or not an employer committed the act charged in the complaint. with the object of placing such organisations under the control of employers or employers' organisations. that the individual authorization required under Article 242. the act charged as ULP must fall under the prohibition of Art. They cannot. (g) To violate the duty to bargain collectively as prescribed by this Code. ILO CONVENTION NO. transfer or even demote its employees to other positions when the interests of the company reasonably demand it. The provisions of the preceding paragraph notwithstanding. It should not be prevented from doing so. it is the prerogative of the company to promote.LABOR RELATIONS of the recognized collective bargaining agent. or even as a combination of any or all of these. productive and profitable operation of their business. (h) To pay negotiation or attorney’s fees to the union or its officers or agents as part of the settlement of any issue in collective bargaining or any other dispute. 248 (acts of the employer) or 249 (acts of the union). although private respondent was transferred to a lower position. what is important is that it constituted an unfair labor practice. In particular. (b) cause the dismissal of or otherwise prejudice a worker by reason of union membership or because of participation in union activities outside working hours or. acts which are designed to promote the establishment of workers' organisations under the domination of employers or employers' organisations. they cannot claim that they were dismissed. 2. it must be demonstrated.P. 3. For however the employer’s conduct may be characterized. has the same full measure of control over his business as he had prior to the enactment of the Wagner Act and undiminished by the amended Act. if such non-union members accept the benefits under the collective bargaining agreement: Provided. Nor are his rights of selection and discharge of his employees wrested from him by the Act. August 21.: ILLUSTRATIVE INSTANCES OF VALID EXERCISE OF MANAGEMENT RIGHTS The law on “unfair labor practices” is not intended to deprive employers of their fundamental right to prescribe and enforce such rules as they honestly believe to be necessary to the proper. Article 2 1. 3. Workers' and employers' organisations shall enjoy adequate protection against any acts of interference by each other or each other's agents or members in their establishment.P.2 Acceptance of Mass Resignation Acceptance of a voluntary resignation is not ULP. authorized or ratified unfair labor practices shall be held criminally liable. associations or partnerships who have actually participated in. only the officers and agents of corporations. it is of no consequence. (f) To dismiss. A promotion which is manifestly beneficial to an employee should not give rise to a gratuitous speculation that such a promotion was made simply to deprive the union of the membership of the promoted employee. how the act is denominated—whether as a restraint. Such management prerogative may be availed of without fear of any liability so long as it is exercised in good faith for the advancement of . therefore. CONDITIONS PRECEDENT TO U.L. 98 Article 1 1. firstly. Furthermore. validly claim that the company committed unfair labor practice. Unless there are instances which directly point to interference by the company with the employees' right to self-organization. interference or coercion. or a discriminatory discharge. paragraph (o) of this Code shall not apply to the nonmembers of the recognized collective bargaining agent. all aspects of employment. according to its discretion and judgment. shall be deemed to constitute acts of interference within the meaning of this Article. When the pilots voluntarily terminated their employment relationship with the company. or (i) To violate a collective bargaining agreement. ________ 1. Rothenberg stresses that an employer. Such protection shall apply more particularly in respect of acts calculated to-(a) make the employment of a worker subject to the condition that he shall not join a union or shall relinquish trade union membership. discharge or otherwise prejudice or discriminate against an employee for having given or being about to give testimony under this Code. Managerial positions are offices which can only be held by persons who have the trust of the corporation and its officers. the transfer of private respondent should be considered as within the bounds allowed by law. 1981). or to support workers' organisations by financial or other means. In a Philippine Airlines case the court said that the pilots’ "protest retirement/resignation" was not a concerted activity which was protected by law. his original rank and salary remained undiminished. 3. Nonetheless. The only condition imposed upon this control is that it must not be exercised so as to effect a violation of the Act and its several prohibitions. that the injured party comes within the definition of “employee” as that term is defined by the Code. within working hours. subject to the provisions of his contract with his employees. 2. and secondly.

While the presence of this mere suspicion neither takes the place of evidence that the employer's conduct was improperly motivated nor dispenses with the requirement of proof of the fact. (6) discrimination because of testimony. where the attendant circumstances.3 Prohibiting Organizing Activities A rule prohibiting solicitation of union membership in company property is unlawful if it applies to non-working time as well as to working time. Even Before Union is Registered An employer who interfered with the right to self-organization before the union is registered can be held guilty of ULP.2 U. The free will of management to conduct its own business affairs to achieve its purpose cannot be denied. 3.5 Issuance of Rules or Policy Every business enterprise endeavors to increase its profits. The remedy is an action for reinstatement with backwages and damages. determining the validity of an employer’s act involves an appraisal of his motives.4 Forced Vacation Leave Where the vacation leave without pay. is neither malicious. Hence. and obtain his participation on a voluntary basis. Where majority of the employees live on the premises of the employer and cannot be reached by any means or procedures practically available to union organizers. it has been held to be no answer to a charge of unfair labor practice that the fruits of espionage were not used. assure him that no reprisal would take place. DETERMINATION OF VALIDITY Necessarily.1 Interrogation . (7) violation of duty to bargaining. 5.L. (2) “yellow dog” condition. vengeance or come kindred human frailty to use his or their access to employees’ quarters and affairs for the purpose of spying upon fellow employees and reporting back to the employer.LABOR RELATIONS the employers' interest and not for the purpose of defeating or circumventing the rights of employees under special laws or valid agreement and are not exercised in a malicious. We have held that unfair labor practice cases are not. and (9) violation of CBA. subject to compromises. the employer must communicate to the employee the purpose of the questioning. (5) discrimination. oppressive. however subtly it may be accomplished. an employer does not commit an unfair labor practice by discharging employees who engaged in a slowdown. when coupled with other facts which in themselves. acts of an employer under Art. However. it may adopt or devise means designed towards that goal.6 Taking Action Against Slowdown Employees have the right to strike. oppressive or vindictive.P. might have been inadequate to support an adverse finding against the employer. or other agents. 5. 248 are: (1) Interference. Even as the law is solicitous of the welfare of the employees. the employer may be required to permit non-employee union organizers to come within its premises. It is plainly evident that such conduct on the employer’s part. such suspicion. vindictive or wanton manner or out of malice or spite. in view of the public interest involved. 5. Inasmuch as the “pressure” results more from the employees’ apprehension than from the employer’s purpose in spying and the use of its result.P. the failure of the employer to ascribe a valid reason therefor may justify an inference that his unexplained conduct in respect of the particular employee or employees was inspired by the latter's union membership or activities. which the employer requires employees to take in view of the economic crisis. in order to solicit employees. 4.P. In addition. An employer may treat freely with an employee and is not obliged to support his actions with a reason or purpose. 5. 3. 5.: INTERFERENCE (ART. an employer does not violate the act by discharging only some of the employees who participate in the slowdown where he discharges them to serve as an “example” to stop the slowdown and not for discriminatory reasons. it must also protect the right of an employer to exercise what are clearly management prerogatives. in the absence of showing that the illegal dismissal was dictated by anti-union motives. harsh. 248[a]) In summarized form. questioning must also occur in a context free from employer hostility to union organization and must not itself be coercive in nature. In order that the questioning of an employee concerning his union activities would not be deemed coercive. 3. the nine U. even if their object is a pay increase which is lawful.L. Moreover.L. Persistent interrogation of employees to elicit information as to what had happened at union meetings and the identity of the active union employees was held as violative of organizational rights of employees. (4) company unionism. constitutes interference with the employee’s exercise of their rights. but they have no right to continue working on their own terms while rejecting the standards desired by their employer. This device consists of using one or a small group of employees. FIRST U. In the process.5 Espionage and Surveillance One form of “pressure” which some over-eager employers sometimes use is the practice of spying upon employees. (3) contracting out. (8) paid negotiation. may suffice to sustain a finding that the employer's action violated the prohibition of the Act. inspired by profit opportunism. ULP is not committed. However. coupled with an intimate connection between the employer's action and the union affiliations or activities of the particular employee or employees taken as a whole raise a suspicion as to the motivation for the employer's action.4 Violence or Intimidation An employer unlawfully coerced employees by directing two individuals to his office at gun point on the day of representation election after the individuals had informed the employer that they were on the premises to vote in the election. 5. the history of employer's past conduct and like considerations. the same does not constitute an unfair labor practice as would be a valid ground for strike.

5. made about 6 weeks after the strike started. and the “closure” is calculated to defeat the workers’ organizational right.10 Successor Employer. does constitute an unfair labor practice. it may be proven by circumstantial evidence. directly or indirectly. expressly or by innuendo. Unlawful surveillance was properly found where supervisors were present near the place where union meeting was being held to check the names of employees leaving the meeting. and a new building to work in. (5) The “totality of conduct” doctrine—the letters of the company president to the individual strikers should not be considered by themselves alone but should be read in the light of the preceding and subsequent circumstances.9b Assumption of Obligations by New Company 5.P. if it is. All the above-detailed activities are unfair labor practices because they tend to undermine the concerted activity of the employees.L.L. so they would abandon the strike and return to work. However." "free coffee and occasional movies. as the result of their support for the union. to camouflage the fact that it has been making profits. 5. to a group of strikers in a restaurant to the effect that if the strikers returned to work. or is owned by the same people. but against the background of and in conjunction with collateral circumstances. there is no need to consider the applicability of the rule that labor contracts being in personam are not enforceable against the transferee. A lockout. accident insurance.P. constitutes unfair labor practice.9a Sale in Bad Faith Where the sale of a business enterprise was attended with bad faith. cessation of operations. then." "overtime" pay for "work performed in excess of eight hours. with the employer or his representative urging the employees to cease union activity or cease striking. of unfair labor practice. is often very difficult. consequently. and which made no effort to allow the employees’ attempt to exercise their right to self-organization and collective bargaining. However. commits unfair labor practice. and it is not necessary that there be direct evidence that any employee was in fact intimidated or coerced by statements of threats of the employer if there is a reasonable inference that anti-union conduct of the employer does have an adverse effect on self-organization and collective bargaining.6 Economic Inducements A violation results from an employer’s announcement of benefits prior to a representation election. 5. or for the purpose of inducing striking employees to return to work. 5.8 Mass Layoff Amounting to U. unless it is expressed. It is irrational to suppose that a purchaser of a manufacturing enterprise is not aware of the labor-management situation in the firm he bought. Proof of the employer’s state of mind. 5. there is no closure because the “closed” department or company reappeared although under a new name. 5. and the employer's statement. (4) Test of interference or coercion—The test of whether an employer has interfered with and coerced employees within the meaning of subsection (a) (1) is whether the employer has engaged in conduct which it may reasonably be said tends to interfere with the free exercise of employees' rights under section 3 of the Act. wage increases given for the purpose of mollifying employees after the employer has refused to bargain with the union.LABOR RELATIONS When an employer engages in surveillance or takes steps leading his employees to believe it is going on. the evidence must establish that the purpose thereof was to interfere with the employees’ exercise of their rights. Piercing the Corporate Veil Closure is likewise not legal and the employees cannot be separated if. and even threatening the employees that they would lose their jobs if they did not cease affiliation with the union. the closure may be declared a “subterfuge” and the doctrine of . the employer's promises of benefits in return for the strikers' abandonment of their strike in support of their union." whereby the culpability of an employer's remarks has to be evaluated not only on the basis of their implicit implications. actual or threatened.7 Employer’s Expression of Opinion. The letters should be interpreted according to the "totality of conduct doctrine. a violation results because the employees come under threat of economic coercion or retaliation for their union activities. The latter is in the position of tort-feasor having been a party likewise responsible for the damage inflicted on the members of the aggrieved union and therefore cannot justly escape liability. where it is intended to induce the employees to vote against the union. in fact.9 Lockout or Closure Amounting to U. profit-sharing. otherwise new employees would be engaged to perform their jobs. for instance. as a means of dissuading the employees from exercising their rights under the Act is clearly an unfair labor practice. The rule is that it is unlawful for the employer to threaten its employees with moving or shutting down the plant and consequent loss of employment. but were to be appraised against the background of and in conjunction with collateral circumstances. If the “new” company is. they were guilty of strike-breaking and/or unionbusting and. However. they would receive new benefits in the form of hospitalization. form and join labor organizations are the following acts: the offer of a Christmas bonus to all "loyal" employees of a company shortly after the making of a request by the union to bargain. to hold an employer who actually or who threatens to lock out his employees guilty of a violation of the Act. Totality of Conduct Doctrine The doctrine holds that the culpability of employer’s remarks was to be evaluated not only on the basis of their implications. A company’s capital reduction efforts. an activity to which they are entitled free from the employer's molestation. An employer which closed its business to put an end to a union’s activities. (1) Letter to individual employees—It is an act of interference for the employer to send a letter to all employees notifying them to return to work at a time specified therein. (2) Strike-breaking—When the respondent company offered reinstatement and attempted to "bribe" the strikers with "comfortable cots. were an unfair labor practice which can neither be countenanced nor condoned. Individual solicitation of the employees or visiting their homes. and to justify the mass lay-off of its employees especially union members. An honest closing of one’s plant is not a violation of the Act." and "arrangements" for their families. calculated or employed to interfere with the employees’ rights under the Act. actual or threatened. engaging in the same business as the closed company or department. It is well-settled rule that while a representation election is pending. (3) Acts violative of right to organize—Violative of the right to organize. the conferral of employee benefits for the purpose of inducing the employees to vote against a union is unlawful.

is a relocation motivated by anti-union animus rather than for business reasons. This takes the form of soliciting membership. THIRD U.: “YELLOW DOG” CONDITION (ART. the typical yellow dog contract is an at-will employment agreement which contains. The doctrine applies when the corporate fiction is used to defeat public convenience. or where the corporation is so organized and controlled and its affairs are so conducted as to make it merely an instrumentality. 248[b]) Contract provisions whereby an employee agrees that during the period of his employment he will not become a member of a labor union have been outlawed in the United States. 7.: COMPANY-DOMINATION OF UNION (ART. (2) employee formation on outright demand or influence by employer. (b) Financial support to the union. the new company will be treated as a continuation or successor of the one that closed.L. This fiction of corporate entity can only be disregarded in certain cases such as when it is used to defeat public convenience. upon joining a labor union. or defend crime. To disregard said separate juridical personality of a corporation. protect fraud. (c) Employer encouragement and assistance. An employer’s contracting out of work is itself an unfair labor practice where motivated by a desire to prevent his employees from organizing and selecting a collective bargaining representative. he will quit his employment. permitting union activities during working time or coercing employees to join the union by threats of dismissal or demotion. (2) a promise by the employee not to join a labor union. The members or stockholders of the corporation will be considered as the corporation. protect fraud. the separated employees will have to be employed in the “new” firm because in the first place they should not have been separated at all. but the term is also used to describe a plant removed to a new location in order to discriminate against employees at the old plant because of their union activities. In such cases. Runaway shop refers to business relocation animated by anti-union animus. If such be the case. and the contracting out must not have been resorted to to circumvent the law or must not have been the result of malicious or arbitrary action. LABOR RELATIONS Resorting to a runaway shop is a U. but the term is also used to describe a plant removed to a new location in order to discriminate against employees at the old plant because of their union activities.successor employer will be applied. the legal fiction that a corporation is an entity with a juridical personality separate and distinct from its members or stockholders may be disregarded. the early removal is an unfair labor practice. As we have previously held.P.: CONTRACTING OUT (ART. justify wrong. 248[d]) Domination of a labor union usually manifests in the following forms: (a) Initiation of the company union idea.P. FOURTH U. is not ULP. 248[c]) Contracting out itself. It is one wherein the employer moves its business to another location or it temporarily closes its business for anti-union purposes. or defend crime.L. Mere ownership by a single stockholder or by another corporation of all or nearly all of the capital stock of a corporation is not of itself sufficient ground for disregarding the separate corporate personality. An employer commits unfair labor practice if he defrays the union expenses or pays the attorney’s fees to the attorney who drafted the constitution and by-laws of the union. justify wrong. agency. when valid grounds therefore exist. the corporation will be considered as a mere association of persons. The “yellow dog” contract is a promise exacted from workers as a condition of employment that they are not to belong to.2 Runaway Shop . a union during their period of employment. This may further occur in three styles: (1) outright formation by the employer or his representatives. as well as by Federal legislation. the following three provisions: (1) a representation by the employee that he is not a member of a labor union. or when it is made as a shield to confuse the legitimate issues or where a corporation is the mere alter ego or business conduit of a person. the company can determine in its best business judgment whether it should contract out the performance of some of its work for as long as the employer is motivated by good faith. liability will attach directly to the officers and stockholders.1 Contracting out restricted by CBA 7. An American scheme. (3) a promise by the employee that. Immediately granting the union exclusive recognition as a bargaining agent without determining whether the union represents the majority of employees is an illegal form of assistance amounting to unfair labor practice.” Under the doctrine of piercing the veil of corporate entity. or escape his statutory duty to bargain collectively with his employees’ bargaining representative. Moreover. It is immaterial that the relocation is accompanied by a transfer of title to a new employer who is an alter ego of the original employer.L. it is the ill intention that makes it so. and (3) managerially motivated formation by employees. or attempt to foster. (d) Supervisory assistance. Sameness of business is not reason enough to show run-away shop to pierce the veil of separate corporate entity. that is. A "runaway shop" in this sense. 6. in addition to the usual provisions for employment.P. by legislation in some states. the wrongdoing must be clearly and convincingly established. A “runaway” shop is defined as an industrial plant moved by its owners from one location to another to escape union labor regulations or state laws. An employer was held to have unlawfully aided a union by assisting its attempt to secure authorization cards from employees and by executing a contract with such union when it was not the authorized representative of the employees. 8. conduit or adjunct of another corporation. A "runaway shop" is defined as an industrial plant moved by its owners from one location to another to escape union labor regulations or state laws. The “successor employer” ruling is an enforcement of the legal recourse called “piercing the veil of corporate entity. that is. A labor union is company-dominated where it appears that key officials of the company have been forcing employees belonging to a rival labor union to join 7. rid himself of union men. it has been held that where a plant removal is for business reasons but the relocation is hastened by anti-union motivation.L. SECOND U.P.

FIFTH U.5 Discrimination by Blacklisting A blacklist has been defined as “a list of persons marked out for special avoidance. Retrenchment very heart of one's employment. to constitute an unfair labor practice. 9.” When it is resorted to by a combination of employers to prevent employment of employees for union activities. In its broad sense. by the Company. after they had presented demands for the improvement of the working conditions despite its alleged retrenchment policy.L. cannot be considered as intended to encourage or discourage Union-membership.LABOR RELATIONS the former under pain of dismissal should they refuse to do so. 9. 34 the uneven application of its marketing plan by respondent company is patently an act of discrimination. the discrimination committed by the employer must be in regard to the "hire or tenure of employment or any term or condition of employment to encourage or discourage membership in any labor organization. and (3) the discharge of a wife due to the union activities of the husband. Due process of law demands nothing less. the discrimination is unlawful. (b) where the salary adjustments were granted to employees of one of its nonunionized branches although it was losing in its operations. of a promise not to destroy company property and not to commit acts of reprisal against the Unionmembers who did not participate in the strike. Thus. it has been held that unless the action of the employers in combining or in passing communications among themselves for the purpose of excluding unwanted workers from employment. the right differs from and should not be confused with the manner in which such right is exercised.: DISCRIMINATION (ART. the requirement by the Company is actually an act of self-preservation and designed to insure the maintenance of peace and order in the Company premises. and (c) the total salary adjustments given every ten of its unionized employees would not even equal the salary adjustments given one employee in the nonunionized branch. considered as an unfair labor practice under Art. and that. For instance. 248[e]) What the law prohibits is discrimination to encourage or discourage membership in a labor organization. Thus. unfair labor practices in the form of discriminatory dismissal were found where only unionists were permanently dismissed while nonunionists were not. (2) the discharge of an employee due to the union activities of the wife.1 Discrimination in Work Quota Considered in the light of the anti-union attitude exhibited by respondent company in transferring union president Leones from the main office in Manila to Cebu when the union was still being organized.3 Discrimination in Layoff or Dismissal Even where business conditions justified a layoff of employees. the excluded employee possesses no right of action because the employers’ community of interest acts both to justify the combination and to privilege the communication.7 Test of Discrimination For the purpose of determining whether or not a discharge is discriminatory. and which act was found by the NLRC as constituting unfair labor practice and union-busting in connection with the application for clearance to terminate Leones filed by respondent company.6 Indirect Discrimination It is a well settled rule of law that what is prohibited to be done directly shall not be allowed to be accomplished indirectly. to be actionable. have attended the election of officers of the former union. the fact that the employee is engaged in union activities at the time will not lie against the employer and prevent him from the exercise of his business judgment to discharge an employee for cause. constitutes a libel or slander (and according to some decisions the defamation. from the strikers returning to work. must be malicious). the company engages the services of new laborers. While the right of strikes at the very heart of an employer to dismiss an employee is conceded in a valid retrenchment. The fact that a lawful cause for discharge is available is not a defense where the employee is actually discharged because of his union activities. the following acts have been held unfair labor practices: (1) the dismissal of a laborer in account of union activities of his brother. it may give rise to a right of action for damages by the employees prejudice under Article 28 of the new Civil Code. it is necessary that the underlying reason for the discharge be established. Where circumstances establish a discriminatory motive on the part of the employer.2 Discrimination in Bonus Allocation or Salary Adjustments There is unfair and unjust discrimination in the granting of salary adjustments where the evidence shows that (a) the management paid the employees of the unionized branch. the assignment of a just cause will be unavailing. They are not necessarily discrimination classifiable as ULP. however that is. Discouraging membership in a labor organization includes not only discouraging adhesion to union membership but also discouraging participation in union activities such as legitimate strike. 248(e) of the Labor Code. These are valid differentiations that recognize differences in job requirements or contributions. or where a list of insolvent or untrustworthy persons is published by a commercial agency or mercantile association. antagonism or enmity on the part of those who prepare the list. or those among whom it is intended to circulate. 9. Under the Industrial Peace Act. But discrimination is not the same as differentiation or classification. as where a trade union ‘blacklists’ workmen who refuse to conform to its rules. Aside from constituting an unfair labor practice.P. after dismissal of the aforesaid officers of the rival labor union. it may be a proper measure for the protection of employers. 9. Labor is a person's means of livelihood. He cannot be deprived of his labor or work without due process of law. It should not be oppressive and abusive since it affects one's person and property. 9. Taking the circumstances surrounding the prescribing of that condition. that hey officials of the company. it may constitute unfair labor practice. ." The exaction. it is common management practice to classify jobs and grant them varying levels of pay benefits package. that officers and members of the rival union were dismissed allegedly pursuant to a retrenchment policy of the company. If the discharge is actually motivated by a lawful reason. in the sense of the employer’s circulating a list of former employees of notorious laziness or negligence in the performance of their duties or of incorrigible propensity to create trouble in the place of employment.4 Discrimination in Regularization 9. Where the purpose is to influence the union activity of employees. 9. as well as its legal counsel. If it can be established that the true and basic inspiration for the employer’s act is derived from the employees’ union affiliations or 9.

rather than by the rule of preponderance of evidence as in any ordinary civil cases. a union security clause essentially requires membership in the union so that an employee may retain his job and the union’s existence is assured. It prevents situation where non-union members enrich themselves at the expense of union members.10c Advantages and Disadvantages of Closed-Shop Agreement A closed-shop agreement is advantageous because it— a. It is implicit in the freedom of association ordained by the Constitution. An interference that the discharge of an employee was motivated by his union activity must be based upon evidence. Modified Union Shop: Employees who are not union members at the time of signing the contract need not join the union. By holding out to loyal members a promise of employment in the closed-shop. The requirement applies to present and future employees. Despite variations and limitations. A closed-shop agreement is an agreement whereby an employer binds himself to hire only members of the contracting union who must continue to remain members in good standing to keep their jobs. whether union members or not. Exclusive Bargaining Shop: The union is recognized as the exclusive bargaining agent for all employees in the bargaining unit. Substantial evidence has been defined as such relevant evidence as a reasonable mind might accept as adequate to support a conclusion. It is true that disaffiliation from a labor union is not open to legal objection. 9. an arrangement which does not require union membership as a condition of employment. But this Court has laid down the ruling that a closed shop is a valid form of union security." It adds membership and compulsory dues.8 Constructive Discharge Where the employer prohibits employees from exercising their rights under the Act. A Question of Fact The question of whether an employee was discharged because of his union activities is essentially a question of fact as to which the findings of the Court of Industrial Relations are conclusive and binding if supported by substantial evidence considering the record as a whole.” The above variations are opposite of open shop. is unavailing. it welds group solidarity. there is discrimination when certain employees are obliged to join a particular union. It is the policy of the State to promote unionism to enable the workers to negotiate with management on the same level and with more persuasiveness than if they were to individually and independently bargain for the improvement of their respective conditions. Bargaining for Members Only: The union is recognized as the bargaining agent only for its own members Agency Shop: An agreement whereby employees must either join the union or pay the union as exclusive bargaining agent a sum equal to that paid by the members.10 Valid Discrimination: Union Security Clause There is a form of encouragement of union membership which is not considered ULP.10a Kinds of Union Security Agreements Closed-shop: Only union members can be hired by the company and they must remain as union members to retain employment in the company. which may be remedies in an unfair labor practice proceeding. 9.9 Discharge Due to Union Activity. “Union security” is a generic term which is applied to and comprehends “closed shop. 9. not upon mere suspicion.10b Validity of Closed-Shop Agreement 9. This is so because the Industrial Court is governed by the rule of substantial evidence. Maintenance of Membership Shop: No employee is compelled to join the union. direct or circumstantial. remain in good standing in the union. It is for this reason that the law has sanctioned stipulations for the union shop and the closed shop as a means of encouraging the workers to join and support the labor union of their own choice as their representative in the negotiation of their demands and the protection of their interest vis-a-vis the employer. and the employee quits as a result of the prohibition. whatever its semblance of validity. It is indeed compulsory union membership whose objective is to assure continued existence of the union. . Prevents non-union workers from sharing in the benefits of the union’s activities without also sharing its obligations. b. on pain of discharge." There is no question that these purposes could be thwarted if every worker were to choose to go his own separate way instead of joining his co-employees in planning collective action and presenting a united front when they sit down to bargain with their employers. it is a valid kind of “discrimination. To this end. but to retain employment must become union members after a certain period. But it is discrimination favouring unionism. a constructive discharge occurs. but all workers hired thereafter must join. Union Shop: Nonmembers may be hired. Another term for agency shop agreement is “maintenance of treasury shop. This is directed against “free rider” employees who benefits from union activities without contributing financially to union support. as a condition of employment. In a sense.” The employer is not guilty of unfair labor practice if it merely complies in good faith with the request of the certified union for the dismissal of employees expelled from the union pursuant to the union security clause in the collective bargaining agreement. 9. 9.” “maintenance of membership” or any other form of agreement which imposes upon employees the obligation to acquire or retain union membership as a condition affecting employment.” “union shop. collective bargaining and negotiations and peaceful concerted actions including the right to strike in accordance with law. the Constitution guarantees to them the rights "to self-organization. the assignment by the employer of another reason.LABOR RELATIONS activities. It means such evidence which affords a substantial basis from which the fact in issue can be reasonably inferred. but all present or future members must. This is where Management and Union enter into a collective bargaining agreement containing a union security clause. It is "the most prized achievement of unionism. Increases the strength and bargaining power of labor organizations. and such provision in a collective bargaining agreement is not a restriction of the right of freedom of association guaranteed by the Constitution. It is a very effective form of union security agreement.

Enables union to charge exorbitant dues and initiation fees. The employee's acceptance of benefits resulting from a collective bargaining agreement justifies the deduction of agency fees from his pay and the union's entitlement thereto. as with closed-shop provisions. restraint of trade.10d Valid Dismissal Because of Application of Union Security Clause Union security clauses in collective bargaining agreements. f. Act No. Sometimes harsh and onerous. notice and hearing prior to dismissal. 9. Corollary. and will not be deemed to authorize by implication any dismissal of employees already working before the agreement was made.10i Closed-Shop. But it is disadvantageous as it— a. nor their dissatisfaction with its terms and conditions would justify breach thereof or the formation by them of a union of their own. length of service. etc. Neither their ignorance of. join or assist labor organizations of their own choosing. c. 1[6]). Denies to non-union workers equal opportunity for employment.10h Employer in Good Faith Not Liable 9. (2) employees already in the service and already members of a labor union or unions other than the majority union at the time the closedshop agreement took effect. from employees who are not union members. 9. 9. d. 875) as well as by the Constitution (Art.10g Liability of Union to Pay Wages and Fringe Benefits of Illegally Dismissed Employee 9. Even if the union members were unaware of the closed-shop stipulation in the CBA. 3. except the following: (1) any employee who at the time the closed-shop agreement takes effect is a bona fide member of religious organization which prohibits its members from joining labor unions on religious grounds. they were bound by it. etc. This provision is an indirect restriction on the right of an employee to selforganization.10e Dismissal Pursuant to Closed-Shop Clause Must Clearly Appear in Contract In order to validly dismiss an employee by force of the union security clause. are valid and binding. Enables labor organizations effectively to enforce collective agreements. Intra-union Matter becomes Termination Dispute with Employer Although a union security clause in a CBA may be validly enforced and that dismissal pursuant thereto may likewise be valid. that is. (3) Confidential employees who are excluded from the rank-and-file bargaining unit. It is well settled in this jurisdiction that. "closed shop" provisions in a collective bargaining agreement "apply only to persons to be hired or to employees who are not yet members of any labor organization" and that said provisions of the agreement are not applicable to those already in the service at the time of its execution. e. but quasi-contractual. there should be a clear and unequivocal statement that the loss of the status of a member of good standing in the union shall be a cause for dismissal. if freely and voluntarily entered into. a right guaranteed by the Industrial Peace Act (sec. this does not erode the fundamental requirement of due process. deriving from the established principle that nonunion employees may not unjustly enrich themselves by benefiting from employment conditions negotiated by the bargaining union. dismissals pursuant to union security clauses are valid and legal subject only to the requirement of due process.10f Due Process Required in Enforcing Union Security Clause. the legal basis of the union's right to agency fees is neither contractual nor statutory. To hold that the employees in a company who are members of a minority union may be compelled to disaffiliate from their union and join the majority or contracting union. The reason behind the enforcement of union security clauses which is the sanctity and inviolability of contracts cannot override one's right to due process. f. e. Thus. b. LABOR RELATIONS Union shop. should be strictly construed against the existence of union shop. may be required to pay an agency fee. 9. The collection of agency fees in an amount equivalent to union dues and fees. Rep.c.10j Agency Fee Instead of Union Membership The employees who are benefitting from the CBA. the dismissal of an employee by the company pursuant to a labor union's demand in accordance with a union security agreement does not constitute unfair labor practice. Eliminates the lowering of standards caused by competition with non-union workers. since it is a joint and several contract of the members of the union entered into by the union as their agent. III. A written authorization from the non-union employee is imposed. In this aspect. sec. Creates harmonious relations between the employer and employee. Facilitates the use of labor organizations by unscrupulous union leaders for the purpose of extortion. . without being members of the bargaining union. is recognized by Article 248 (e) of the Labor Code. d. It is a solemn pronouncement of a policy that while an employee is given the right to join a labor organization. Interferes with the freedom of contract and personal liberty of the individual worker. in the absence of a manifest intent to the contrary. and (4) employees excluded from the closed-shop by express terms of the agreement. g. 9. would render nugatory the right of all employees to self organization and to form. Compels employers to discharge all non-union workers regardless of efficiency. such right should only be asserted in a manner that will not spell the destruction of the same organization The law requires loyalty to the union on the part of its members in order to obtain to the full extent its cohesion and integrity. To Whom Not Applicable All employees in the bargaining unit covered by a closed-shop agreement are subject to its terms. such provisions should not be extended beyond the explicit coverage of their terms. Prevents the weakening of labor organizations by discrimination against union members. Results in monopolistic domination of employment by labor organizations. Facilitates the collection of dues and the enforcement of union rules. This is so because a union member who is employed under an agreement between the union and his employer is bound by the provisions thereof.

14. 13. An employee acting alone in pursuing a group interest may be said to be doing a concerted activity which the employer may not curtail. the subject of Title I of Book III. on the other hand. NINTH U.L. It shall be unlawful for an employer to refuse to pay or reduce the wages and benefits.3 Order to Bargain. the record must show that the restrained misconduct was an issue in the case. the Court may. rests on the parties’ “duty to bargain. Under Article 248. It is a punishable act of ULP for the employer to pay the union or any of its officers or agents any negotiation fee or attorney’s fee as part of settlement in collective bargaining or any labor dispute.1 Cease and Desist Order To support a cease and desist order.P. 248 refers to violating the duty to bargain. The order may usually direct the full reinstatement of the discharged employees to their substantially equivalent position without prejudice to their seniority and other rights and privileges. 248[f]) BECAUSE OF LABOR RELATIONS 11. that there was a finding of fact of said misconduct and such finding of fact was supported by evidence. interference or coercion.4 Disestablishment 10. CASES The law protects not only the employees’ right to form. together with the act of terminating or coercing those who refuse to cooperate with the employer's scheme constitutes unfair labor practice. They both speak of employee’s filing a complaint or giving testimony. the right to self-organization will be indirectly defeated because the employees will fear their employer’s reprisal. A cease and desist order is not invalidated because the act complained of was voluntarily discontinued prior to or during the course of the proceedings. Articles 118 and 248 are related.L. it should be recalled. EIGHT U. But the subject of complaint or testimony under Article 118 is limited to matters about wages. Retaliatory measures. discharge or in any manner discriminate against any employee who has filed any complaint or instituted any proceeding under this Title or has testified or is about to testify in such proceedings. Retaliation is wrong.” The duty to bargain. But if the act complained of happened so long a time that there is no longer any threat or probability of a recurrence. the subject testified to is any issue covered by the Code. the act of compelling employees to sign an instrument indicating that the employer observed labor standards provisions of law when he might have not. The first act clearly preempts the right of the hotel's workers to seek better terms and conditions of employment through concerted action. Without doubt. discharge. See Articles 252 and 253 12. 14. therefore.1 Refusal to Testify Clearly.: DISCRIMINATION TESTIMONY (ART. It is ethically reprehensible. SEVENTH U. Article 248 considers it an unfair labor practice which. The law zealously shields them from corruption. But such violation. or assist labor organizations but also their right to testify on matters covered by the Code.P.P. the noncompliance amounts to ULP. and the agency fee is recognition of the agent’s efforts. it is ULP “to dismiss.2 Labor Standards Violation May Lead to a Srike Art. 10. 118. Thus. If this right is not protected. a cease and desist order will not be justified. it should also be recalled. to constitute ULP.L. Mandated CBA Likewise. Implementation is still part of the bargaining process which. 10. the efforts to justify petitioner's dismissal — on top of the private respondent's scheme of inducing his employees to sign an affidavit absolving him from possible violations of the Labor Code — taints with evident bad faith and deliberate malice petitioner's summary termination from employment. It logically follows that noncompliance with the agreement is non-observance of good faith in bargaining.: VIOLATION OF THE DUTY TO BARGAIN (ART. or otherwise prejudice or discriminate against an employee for having given or being about to give testimony under this Code.L. 248[i]) After a CBA is concluded. requires good faith. 246) and reiterated in Article 263(b). against his employee's right to institute concerted action for better terms and conditions of employment. and more than that.L. . 14. must be “gross. The fee is collectible only from employees deriving economic benefits from the unionnegotiated CBA. Both articles likewise speak of retaliation by the employer. 261. Concerted activity does not always require a number of people acting in unison. And yet.2 Affirmative Order The Court does not only have the power to issue negative or prohibitive orders but also affirmative or positive orders. 14. it violates the right to engage in concerted activity. under Art.P. but must confine its injunction orders to specific act or acts which are related to past misconduct. issue an affirmative order to compel the respondent to “bargain” with the bargaining agent. when an employer has failed or refused to bargain with the proper bargaining agent of his employees. 14.: VIOLATION OF THE CBA (ART. The union served as agent of the employees. SIXTH U. By protecting the employee’s right to testify. 248[g]) The seventh ULP act under Art. the law therefore shields the workers’ right to self-organization from indirect assault by the employer. is a legal reason for employees to hold a strike. join. And good faith implies faithful observance of what has been agreed upon. 263. The pivotal question in any case where unfair labor practice on the part of the employer is alleged is whether or not the employer has exerted pressure. Employer’s reprisal against a testifying employee is ULP because.P. 248[h]) Self-organization and collective bargaining are treasured rights of workers. its implementation follows. RELIEF IN U.” according to Art. To do so is not unlawful.: PAID NEGOTIATION (ART. a right included in the right to self-organize (Art. in the form of restraint. The Court is not authorized to issue blank cease and desist orders. furthermore. in addition to the usual cease and desist orders.The justification of collecting agency fee is the union’s accomplishment in having negotiated a CBA in behalf of the employees.

in the nature of an exaction. repeated or widespread activities by such supervisory employee in affront of the rights of the body of employees was deemed ample justification for ascribing knowledge and blame to the employer. 1981). However. (d) To cause or attempt to cause an employer to pay or deliver or agree to pay or deliver any money or other things of value. ________ Chapter III UNFAIR LABOR PRACTICES OF LABOR ORGANIZATIONS Article 249. 1.P. (e) To ask for or accept negotiation or attorney’s fees from employers as part of the settlement of any issue in collective bargaining or any other dispute. for members of one union over members of another union. NOT SUBJECT TO COMPROMISE Unfair labor practice cases are not. UNION-INDUCED DISCRIMINATION The law forbids as ULP union attempts to cause an employer to grant advantages for union members over non-members.L. Unfair labor practices of labor organizations. was not ordinarily and n absence of proof of actual authority held to be sufficient to convict an employer of an unfair labor practice. in certain cases.1 Coercing Participation in Strike The provision is violated by a union’s restraining or coercing an employee in the exercise of his right to refuse to participate in or recognize a strike. its officers.Where the employer had initiated. 17. RESTRAINT OR COERCION BY LABOR ORGANIZATION. . his failure to prevent continuation of the course of conduct or his failure to renounce any connection or affinity therewith. This deliberate omission is “the equivalent of license of labor organization to engage in those practices which. violation is committed when a union threatens employees with bodily harm in order to force them to strike.P. a labor organization may interfere in the employees’ right to self-organization as long as the interference does not amount to restraint or coercion. an order directing the employer to withdraw all recognition from the dominated labor union and to disestablish the same. (c) To violate the duty. (As amended by Batas Pambansa Bilang 130. a labor organization shall have the right to prescribe its own rules with respect to the acquisition or retention of membership. members of governing boards. the similarity between the past attitude or policy of the employer and that of the offending supervisory employee might. . representatives or agents or members of labor associations or organizations who have actually participated in. LABOR RELATIONS (b) To cause or attempt to cause an employer to discriminate against an employee. dominated or assisted in or interfered with the formation or establishment of any labor organization or contributed financial or other support to it. agents or representatives: (a) To restrain or coerce employees in the exercise of their right to self-organization. 2. The Union should not. EMPLOYER’S RESPONSIBILITY FOR U. But “interference” is left out. Interference by a labor organization is not ULP because interfering in the exercise of the right to organize is itself a function of selforganizing. the Court may issue. for members of the union executive board over more senior employees. Employer’s past policy and attitude: It has been held that. including the demand for fee for union negotiations. among other things. The provisions of the preceding paragraph notwithstanding. however. the charges should include all acts of unfair labor practice committed against any and all members of the Union during that period. whether improvident or deliberate on the employee’s part.” In other words. U. for union members in good standing over suspended or expelled members. based upon acts committed during the same period of time. continued. for union members over permit holders. in view of the public interest involved. in addition to a cease and desist order. subject to compromises.P. or refuse to bargain collectively with the employer. 15. The relation between capital and labor are not merely contractual. ACTS BY SUBORDINATE OFFICIALS Knowledge by the employer of the employee’s improper acts: Where it was established that the employer was aware of the employee’s wrongdoing. Similarly. 249(a) parallels with Art. INTERFERENCE BY UNION IS NOT ULP A labor organization commits ULP when it restrains or coerces employees in their right to self-organization. 16. They are so impressed with the public interest that labor contracts must yield to the common good. Continuity of improper conduct by employee: A single utterance by a supervisory employee. invited the imputation of fault and responsibility to the employer.L. only the officers. including discrimination against an employee with respect to whom membership in such organization has been denied or to terminate an employee on any ground other than the usual terms and conditions under which membership or continuation of membership is made available to other members. provided it is the representative of the employees. 248(a). authorized or ratified unfair labor practices shall be held criminally liable. at the hands of an employer.L. IN A GIVEN PERIOD SHOULD BE INCLUDED IN SINGLE CHARGE When a labor union accuses an employer of acts of unfair labor practice allegedly committed during a given period of time. August 21. U. This provision of Art. be indicative of a concert of effort between the two. or for members of one local over members of another local. would constitute actionable unfair labor practices by way of “interference. upon the dismissal of the charges first preferred. or (f) To violate a collective bargaining agreement.It shall be unfair labor practice for a labor organization. for services which are not performed or not to be performed. ________ 1. be allowed to split its cause of action and harass the employer with subsequent charges.

health and safety. Collective bargaining includes four related but distinguishable processes: (1) negotiation between representatives of the management and the union over “wages. it shall serve a written notice upon the other party with a statement of its proposals. ________ 1. who have the requisite qualifications. In spite of employee assertions that these so-called featherbedding practices are directly related to job security. The other party shall make a reply thereto not later than ten (10) calendar days from receipt of such notice. the Board shall intervene upon request of either or both parties or at its own initiative and immediately call the parties to conciliation meetings. is qualified in the case of labor unions holding a monopoly in the supply of labor. and judiciousness.” (2) the execution of a written contract embodying the terms agreed upon. and other terms of employment. without any reasonable ground therefor. Consequently. ________ . 249(d) refers to featherbedding. prudence.The forbidden discrimination may refer to terms of hiring or firing. 249(c) is intended to insure that unions approach the bargaining table with the same attitude of willingness to agree as the Act requires of management. and legality. – In the absence of an agreement or other voluntary arrangement providing for a more expeditious manner of collective bargaining. 250. FEATHERBEDDING ARRANGEMENTS AND MAKE-WORK Art. which he forthwith withdrew or revoked. 4. It shall be the duty of the parties to participate fully and promptly in the conciliation meetings the Board may call. 2. the parties are prohibited from doing any act which may disrupt or impede the early settlement of the disputes. Duty to bargain collectively in the absence of collective bargaining agreements. most courts at common law found these practices to be economically wasteful and without any legitimate employee justification. however. March 21. qualified applicants may not be arbitrarily excluded from membership and their admission may not be barred by unreasonable rules. It is a mutual responsibility of the employer and the Union and is characterized as a legal obligation. either in a given locality. or as regards a particular employer by reason of a closed-shop or similar agreements. Surely. much less their own members. that union security clauses are also governed by law and by principles of justice. (As amended by Section 20. The Court stresses. however. and consequently from her job.1 Arbitrary Use of Union Security Clause The broad rule is that the union has the right to determine its membership and to prescribe the conditions for the acquisition and retention thereof.2 Not Disloyalty to Ask Help from Another Union 3. (3) negotiation of any question arising as to the interpretation or application of the contract. or a union in insisting upon the discharge of. hours. who. This rule. (b) Should differences arise on the basis of such notice and reply. he may. and a closed-shop provision would not justify the employer in discharging. “Featherbedding” is the name given to employee practices which create or spread employment by “unnecessarily” maintaining or increasing the number of employees used. fairness. except with a high sense of responsibility. if said unions may be compelled to admit new members. with more reason may the law and the courts exercise the coercive power when the employee involved is a long standing union member. an employee whom the union thus refuses to admit to membership.1 Definition Collective bargaining or negotiations towards a collective agreement is a democratic framework to stabilize the relation between labor and management and to create a climate of sound and stable industrial peace. for personal or impetuous reasons or for causes foreign to the closedshop agreement and in a manner characterized by arbitrariness and whimsicality. and cannot arbitrarily he denied readmission. owing to provocations of union officers.The following procedures shall be observed in collective bargaining: (a) When a party desires to negotiate an agreement. either party may request for a conference which shall begin not later than ten (10) calendar days from the date of request. or in benefits. A union violates its duty to bargain collectively by entering negotiations with a fixed purpose of not reaching an agreement or signing a contract. Union security clauses cannot be used by union officials against an employer. fair play. 6715. A union member may not be expelled from her union. REFUSAL TO BARGAIN ULP under Art. at least. and 2. NATURE OF COLLECTIVE BARGAINING 1. in layoff. (d) During the conciliation proceedings in the Board. LABOR RELATIONS Title VII COLLECTIVE BARGAINING AND ADMINISTRATION OF AGREEMENTS ART. admission to membership may not be compelled. Republic Act No. it shall be the duty of employer and the representatives of the employees to bargain collectively in accordance with the provisions of this Code. 1989). In such case. invoke the rights of those who seek admission for the first time. The Board shall have the power to issue subpoenas requiring the attendance of the parties to such meetings. .4 Needless to say. or the amount of time consumed. was impelled to tender his resignation. It is well settled that labor unions are not entitled to arbitrarily exclude qualified applicants for membership. to work on a particular job. in seniority. ________ Article 251. and (e) The Board shall exert all efforts to settle disputes amicably and encourage the parties to submit their case to a voluntary arbitrator. Procedure in collective bargaining. (c) If the dispute is not settled.

JURISDICTIONAL PRECONDITIONS OF COLLECTIVE BARGAINING . The notion that workers are entitled to participate in setting the terms under which they are to work is inherent in collective bargaining. It requires both parties. but not much later in other countries. 4. are the employer and the employees represented by their labor union. Moreover—and this is very important—it provides an orderly procedure by which each side can seek to present to the other the best possible case for the satisfaction of its particular demands. In common usage as well as in legal terminology. Where neither party is an “employer” nor an "employee" of the other. where the process of collective bargaining has an equally long history. it is not. A CBA. refers to a contract executed upon request of either the employer or the exclusive bargaining representative incorporating the agreement reached after negotiations with respect to wages. and “consent assures stability because parties who have accepted an agreement will live by its terms. where there is no duty to bargain collectively the refusal to bargain violates no right. working men sought to protect themselves against the harsh effects of new machines. 2.” 2. when an existing agreement is validly opened for negotiations. it does not end with the execution of an agreement. it must yield to the common good. Quezon on November 21. who first used it in 1891 in her study on “The Cooperative Movement in Great Britain. Article. from the area of unilateral to the area of bilateral decisionmaking. The duty to bargain collectively arises only between the “employer” and its “employees”.3 Strength of the Collective Bargaining Method Collective bargaining is also a means of ensuring worker’s participation in decision-making. is not merely contractual in nature but impressed with public interest. approved by President Elpidio Quirino on June 17. 1953). including proposals for adjusting any grievances or questions arising under such agreement. an ordinary contract to which is applied the principles of law governing ordinary contracts. no such duty would exist. both where they differ and where they are identical. as used in Article 252 of the Labor Code. be it only wages.2 Adoption in the Philippines In the Philippines the idea of collective bargaining first gained formal and official recognition through Commonwealth Act No. it is customary and helpful to distinguish negotiation of contracts (the “legislative” phase of the union-employer relationship). giving due consideration to the context in which it is negotiated and purpose which it is intended to serve. The parties. that defined collective bargaining and outlined its procedure. administration of contracts (the “executive phase). EMERGENCE OF COLLECTIVE BARGAINING First in Great Britain. and a rule of law is substituted for absolute authority. to collective bargaining as traditionally understood.2 Rationale By “collective bargaining” the employee shares through his chosen representatives in fixing the conditions under which he works.” In non-English speaking countries. While the terms and conditions of a CBA constitute the law between the parties. PARTIES TO COLLECTIVE BARGAINING A CBA is more than a contract. Stability is an important element in employment. new divisions of labor and new intensities of competition by forming organizations capable of representing their interests as a group vis-à-vis employees and the State. But it is the Industrial Peace Act (RA No. 3. to deal with each other with open and fair minds and sincerely endeavor to fight the obstacles in the process to stabilize employer-employee relationship. and interpretation or application of contracts (the “judicial” phase). hours of work and all other terms and conditions of employment. 213. 875. It is a continuous process. it is a generalized code to govern a myriad of cases which the draftsmen wholly anticipate. Needless to add. It provides an opportunity for the exchange of information tending to enhance the understanding of the parties for each other problems and objectives. 1. and the courts must place a practical and realistic construction upon it. it must be construed liberally rather than narrowly and technically. then.1a CBA Defined 2. It covers the whole employment relationship and prescribes the rights and duties of the parties. However. the emphasis was placed on the term “collective agreement” because during the early period the workers aimed not so much at establishing the procedure of bargaining itself as at having such agreements recognized and enforced as legally binding contracts.LABOR RELATIONS (4) negotiation over the terms of a new contract or proposed modifications. 1. 1936. collective bargaining denotes negotiations looking forward to a collective agreement. thus. 1. as a labor contract within the contemplation of Article 1700 of the Civil Code of the Philippines which governs the relations between labor and capital. however.1 Originator A collective bargaining agreement (CBA). particularly on the European continent. approved by President Manuel L. Collective bargaining is a system made up of a set of continuous processes. new methods of production. It elicits the consent of those who will have to live under the terms of any agreement derived from the bargaining process. The bargaining representative of the employees is an entity—the union—and not the officers of the union. the employer and duly authorized representatives of employees. 212. even the most rudimentary form of collective bargaining involves a transfer of certain issues. The credit for coining the expression belongs to Beatrice Webb. (j) "Bargaining representative" means a legitimate labor organization whether or not employed by the employer. As such.

This is the basic reason the bargaining procedure is governed primarily by agreement of the parties. an employer is not in default respecting the duty to bargain until a request therefor has been made. 211) and allows the parties to devise their bargaining rules (Art. Having the right to demonstration of this fact. ULP Where a majority representative has been designated. or enterprise level. Section 4. [for the employer] as a refusal of collective bargaining. 6. namely: (1) possession of the status of majority representation of the employees' representative in accordance with any of the means of selection or designation provided for by the Labor Code. the collective bargaining should begin within the 12 months following the determination and certification of the employees’ exclusive bargaining representative. No. benefits and other terms and conditions of work for all employees covered in the bargaining unit. together with its proposals for collective bargaining. industry. notwithstanding the repudiation of the union by a majority of its employees before the expiration of the one-year period. The structure may consist of an association representing employers. however. or even a whole industry. it is ULP for one of the unions to stage a strike and demand that the employer sit down with it for collective bargaining. It is essential to the right of a putative bargaining agent to represent the employees that it be the delegate of a majority of the employees and. conversely. Small employers in highly competitive and labor-intensive fields may find it easier to operate with uniformity of labor cost. In the presence of validly agreed procedure. The employer's right is however to reasonable proof. (2) proof of majority representation. . The Philippines so far has tried only enterprise-level. The rule is the same whether the union lost its majority as a result of the employer’s unfair labor practices or through no fault of the employer.A recognized or certified labor union that desires to negotiate with its employer shall submit such intention in writing to the employer. It is necessary however. is not under any legal duty to initiate contract negotiation. An employer’s duty to recognize and bargain collectively with a union as the collective bargaining representative of his employees does not arise until after the union requests the employer to bargain. Multi-employer bargaining provides both management and unions with significant cost savings in negotiation of labor agreements. or it may be composed of only a few employers who bargain as a group.” The employer’s duty to bargain during the certification year has been held to extend throughout the entire year. A union which has been certified by the NLRB as a bargaining representative for a particular unit enjoys an irrefutable presumption of a majority status for one year.O. Employee turnover does not constitute “unusual circumstances” shortening the period. It is cheaper to negotiate one master multi-employer agreement than a number of single-employer agreements. financially weak employers. it is not an 'unfair labor practice' for an employer to refuse to negotiate until the asserted bargaining agent has presented reasonable proof of majority representation. Competitive pressures are the dominant forces that encourage both unions and employers to enter into multi-employer or industry-wide bargaining relationships. The mechanics of collective bargaining is set in motion only when the following jurisdictional preconditions are present.While it is a mutual obligation of the parties to bargain. 4. Hence. 5. Procedure in single enterprise bargaining . there continues to be a presumption in favor of a union majority. an employer is under duty to bargain collectively only when the bargaining agent is representative of the majority of the employees. (a) of the New Labor Code. to deal and negotiate with the minority representative. the unit structure is described as a multi-employer bargaining unit. that such demand be made in good faith and not merely as a pretext or device for delay or evasion. On the union side. WHEN BARGAINING SHOULD BEGIN If the three jurisdictional preconditions are present. an employer commits an unfair labor practice by refusing to bargain with the union during its certification year. Absent unusual circumstances. absent special circumstances. and agree on wages. 251). This period is known as the “certification year. or through an association. and (3) a demand to bargain under Article 251. .1 Rationale of Multi-employer Bargaining When a number of employees join forces for purposes of collective bargaining.Any voluntarily recognized or certified labor union may demand negotiations with its employer for terms and conditions of work covering employees in the bargaining unit concerned. D. schedule the number and frequency of meetings. though the The recognized or certified labor union and its employer may adopt such procedures and processes they may deem appropriate and necessary for the early termination of their negotiations. LABOR RELATIONS presumption is rebuttable. 40-03 supplements the codal provisions: Section 3. or decentralized bargaining. The multi-employer unit is particularly advantageous to both sides in industries composed of many small. When single enterprise bargaining available. SINGLE ENTERPRISE BROADLY DESCRIBED BARGAINING PROCEDURE The law gives primacy to free collective bargaining (Art.1 Bargaining with Minority Union. A natural consequence of these principles is that the employer has the right to demand of the asserted bargaining agent proof of its representation of its employees. 7. 7. it is an unfair labor practice. MULTI-EMPLOYER BARGAINING Collective bargaining may take place at the national. the employer. the Labor Code procedure applies suppletorily only. They shall name their respective representatives to the negotiation. where there exists a legitimate issue as to which of several unions is the legitimate representative of employees. par. Following the expiration of the one-year certification period.

2) each labor union in the employer unit. 7. Multi-employer bargaining may not only overlook the needs of various employee groups. (d) During the course of negotiations. that the parties take into account before opting for multi-employer units. however. addressed to its corresponding exclusive bargaining agent or employer. 4) the duration of the collective bargaining agreements. 2) the scope and coverage of the negotiations and the agreement. – The duty to bargain collectively means the performance of a mutual obligation to meet and convene promptly and expeditiously in good faith for the purpose of negotiating an agreement with respect to wages. entered into by each labor union with their respective employers. No. if any.Two (2) signed copies of collective bargaining agreement reached through multiemployer bargaining shall be posted for at least five ( 5) days in two conspicuous areas in each workplace of the employer units concerned. which shall contain the following: 1) the names of the labor unions who desire to avail of multi-employer bargaining. Procedure in multi-employer bargaining. consenting employers and the corresponding legitimate labor unions shall discuss and agree on the following: 1) the manner by which negotiations shall proceed. 40-03) Section 5. but also ignore particular requirements of individual employers. the effect of the negotiations on current agreements or conditions of employment among the parties. To arrive at multi-employer agreements is much more difficult than to arrive at single-employer contracts. When multi-employer bargaining available.O. . The expanded size of the unit composed of many heterogeneous groups leads to intensive intraorganizational bargaining both on the union’s and on the employer’s side. It shall be the duty of both parties to keep the status quo and to continue in full force and effect the terms and conditions of the existing agreement during the 60-day period and/or until a new agreement is reached by the parties. No. Legitimate labor unions who are members of the same registered federation. or industry union are exempt from execution of this written agreement. 7. the multi-employer unit is based primarily on the consent of the firms involved. shall accompany said notice. other considerations than costs. such as intraorganizational issues. Section 7. However. . (a) Legitimate labor unions who desire to negotiate with their employers collectively shall execute a written agreement among themselves. or the certificates of registration of the federation. national. Said collective bargaining agreement shall affect only those employees in the bargaining units who have ratified it. 3) the fact that each corresponding legitimate union is any incumbent exclusive bargaining agent.LABOR RELATIONS There are.O. 4) the duration of the current collective bargaining agreement. Meaning of duty to bargain collectively. ________ Article 252. if any.A legitimate labor union(s) and employers may agree in writing to come together for the purpose of collective bargaining. What may be readily acceptable to one employer may be considered as financially disastrous by another.Multi-employer bargaining may be initiated by the labor unions or by the employers. (b) only employers with counterpart legitimate labor unions who are incumbent bargaining agents may participate and negotiate in multi-employer bargaining. Section 6. either party can serve a written notice to terminate or modify the agreement at least sixty (60) days prior to its expiration date. Said notice shall indicate the following: 1) the names of the employers who desire to avail of multi-employer bargaining. 40-03 multi-employer bargaining is purely optional for employers and unions. (b) The legitimate labor unions who desire to bargain with multi-employers shall send a written notice to this effect to each employer concerned. At times. entered into by each employer with the counterpart legitimate labor union. and (c) only those legitimate labor unions who pertain to employer units who consent to multi-employer bargaining may participate in multi-employer bargaining. Negotiations may commence only with regard to respective employers and labor unions who consent to participate in multi-employer bargaining. or industry union. Posting and registration of collective bargaining agreement. Duty to bargain collectively when there exists a collective bargaining agreement. The written agreement stated in the preceding paragraph.4 Optional Under D. . ________ Article 253. these intra-organizational pressures may lead to lengthy delays in negotiations and even to breakdown of bargaining. and 3) where appropriate. Employers who agree to group themselves or use their existing associations to engage in multiemployer bargaining shall send a written notice to each of their counterpart legitimate labor unions indicating their desire to engage in multi-employer bargaining. . (c) Each employer or concerned labor union shall express its willingness or refusal to participate in multi-employer bargaining in writing. provided: (a) only legitimate labor unions who are incumbent exclusive bargaining agents may participate and negotiate in multi-employer bargaining. The same collective bargaining agreement shall be registered with the Department in accordance with the following Rule. 3) the fact that each of the labor unions are the incumbent exclusive bargaining agents for their respective employer units. hours of work and all other terms and conditions of employment including proposals for adjusting any grievances or questions arising under such agreement and executing a contract incorporating such agreements if requested by either party but such duty does not compel any party to agree to a proposal or to make any concession. – When there is a collective bargaining agreement. national. the duty to bargain collectively shall also mean that neither party shall terminate nor modify such agreement during its lifetime.2 Multi-employer Bargaining Procedure (D. Unlike other bargaining units. 2) their corresponding legitimate labor organizations.

the CBA remains in full force and effect. but also must recognize the union for the purpose of collective bargaining. additionally. if requested. 2. the new employer need not bargain with the incumbent union. the NLRB looks to the totality of circumstances to determine whether there has been a substantial and material alteration in the employing enterprise.” That means that an acquiring employer is a successor to the bargaining obligations of his predecessor if there is a continuity in the business operation. the duty to bargain means all of the above and. IN BARGAINING: FAILURE OR REFUSAL TO MEET AND CONVENE An employer is guilty of an unfair labor practice in refusing to bargain with the representative of a majority of his employees. the transferor’s duty to recognize and bargain with an incumbent union devolves upon the transferee as “successor employer. even if they are not all members of the union.2 Selling the Company If an employer is guilty of unfair labor practice when he directly discharges his employees to forestall a demand for collective bargaining. In addition. During the 60-day period and until a new agreement is reached. and in good faith. including failure or refusal to execute the collective agreement. The limitations or reservations of the duty are that it does not compel any party to agree to a proposal or to make a concession. DUTY TO BARGAIN DEFINED The law contemplates and defines two situations when the duty to bargain exists: Situation one. For Situation One. and (2) to execute a contract incorporating such agreement if requested by either party. FIRST U. he certainly should not be allowed to evade responsibility if he indirectly causes that discharge by selling to a company that he knows is unwilling to accept his employees. 2. Since a collective bargaining agreement does not define all the rights and obligations of the employer and his employees. as long as he continues to negotiate. either party may notify the other in writing that it desires to terminate or modify the agreement.6 Acts not Deemed Refusal to Bargain .” but also under the subsection making it an “unfair labor practice” to: “interfere with. The basic rule is that if the transfer of assets and employees from one employer to another leaves intact the identity of the employing enterprise. (2) evading the mandatory subjects of bargaining. expeditious. negotiation of grievances is part and parcel of the bargaining process. The purposes of the meeting and convening are: (1) to negotiate an agreement on the subjects of: LABOR RELATIONS The duty to bargain extends beyond the period of contract negotiations. an employer must not only meet and confer with the union which represents his employees. and hence is not a mandatory subject of bargaining 2. To bargain in good faith. 252). 2. The failure of refusal of an employer to bargain collectively with his employees constitutes an enjoinable unfair labor practice not only under the subdivision of the Act dealing expressly with “collective bargaining.5 Do Economic Exigencies Justify Refusal to Bargain? An employer has been held not guilty of a refusal to bargain by adamantly rejecting the union’s economic demands where he is operating at a loss.P. and (4) gross violation of the CBA. But 60 days before the CBA expires. or in a depressed industry. 2. It does not always coincide with the 60-day period mentioned in Articles 253-A and 256 pertaining to “freedom period” to resolve representation contest between unions 1.L. The law therefore provides for automatic renewal or extension of the CBA. and applies to labor-management relations during the term of the agreement.4 Conversion to Independent Franchise or Operation A decision to withdraw capital from a company-operated facility and relinquish the operating control to an independent dealership lies very much at the core of entrepreneurial control. 253 refers to submission of proposals to renegotiate the nonrepresentational provisions of the CBA. 2. Only a high degree of enterprise continuity will justify imposing obligations under a contract with the union to which the new employer was not a party. where a CBA exists (Art. restrain or coerce employees in the exercise” of their guaranteed rights. he must recognize the union as the bargaining representative of all the employees in the appropriate bargaining unit. the parties are dutybound to keep the status quo. 2. This 60-day period under Art.1 Unresolved Petition for Union Cancellation (a) wages. on the theory that refusal by an employer to bargain collectively with his employees constitutes “interference” with the latter’s right of self-organization.3 Successor Employer: Continuity and Identity In making the determination as to whether an employer is successor. If there is a substantial and material alteration in the employing enterprise. the obligation not to terminate or modify the CBA during its lifetime.________ 1. For Situation Two. when there is yet no collective bargaining agreement (Art. A mere change in ownership of a business is insufficient to alter a union’s status as bargaining representative. The kind of compliance required is prompt. on a low profit margin. the duty to bargain means in essence the mutual obligation of the employer and the employees’ majority union to meet and convene.1 Four Forms of ULP in Bargaining (1) failure to meet and convene. (b) hours of work. and Situation two. and (c) all other terms and conditions of employment including proposals for adjusting grievances or questions arising under such agreement. 253). (3) bad faith in bargaining.

and all other terms and conditions of employment. Under our Labor Code.P.L. SECOND U. or incidental impact is insufficient to render a subject a mandatory subject of bargaining. Neither is the duty to bargain violated where: (1) there is no request for bargaining. and other terms and conditions of employment. (5) the demand for recognition and bargaining is made within the year following a certification election in which the clear choice was no union and no ad interim significant change has taken place in the unit. Where. the employer has no obligation to bargain until he is notified that the illegal strike has been terminated. (7) Transfer. as to other matters. however designated. (2) the union seeks recognition for an inappropriately large unit. (3) refusal to bargain during period of illegal strike.LABOR RELATIONS The duty to bargain is not violated by: (1) adoption of an adamant bargaining position in good faith. (5) Pensions and retirement plans. particularly when the company is operating at a loss. may indicate bad faith and this is especially true where the Union’s request for a counter proposal is left unanswered.” as used in 29 USCS Sec. designed to stabilize the relation between labor and management and to create a climate of sound and stable industrial peace.8 Non-reply to Proposal. substantial evidence is required to support the claim. etc. (4) Bonuses. so much so that Article 248 of the Labor Code makes it an unfair labor practice for an employer to refuse "to meet and convene promptly and expeditiously in good faith for the purpose of negotiating an agreement with respect to wages. (10) Work rules and regulations. 2. On the other hand. in order for a matter to be subject to mandatory collective bargaining. We agree with the pronouncement that it is not obligatory upon either side of a labor controversy to precipitately accept or agree to the proposals of the other. (3) Vacations and holidays. (8) Lay-offs. 2. 3. there is no obligation or duty on the employer’s part to enter into negotiations until the demanded proof is presented pending the certification proceedings. But an erring party should not be tolerated and allowed with impunity to resort to schemes feigning negotiations by going through empty gestures.” 3.” They are statutory or “mandatory” proposals. Since the passage of the Taft-Hartley Act.7 Alleged Interference in the Selection of the Union’s Negotiation Panel In order to show that the employer committed ULP under the Labor Code. the employer has demanded additional proof or acquisition of an official certification of bargaining agency. has been held to include not only compensation but also other emoluments of value furnished by the employer to his employees. 158(d). An employer’s refusal to negotiate a mandatory subject of bargaining is an unfair labor practice although the employer has every desire to reach agreement and earnestly and in all good faith bargains to that end. (3) the union seeks to represent some persons who are excluded from the Act. 2. direct. the National Labor Relations Board has held that industrial pensions. an employer’s duty to bargain is limited to the mandatory bargaining subjects. (9) Employee workloads.1 Wages and Employment Conditions The term “wages. capable of being expressed in terms of money. A mere remote. “wage” refers to remuneration or earnings. “A company’s refusal to make counter proposal if considered in relation to the entire bargaining process. hours.” Moreover. including merit increases. hours of work. The following are examples of matters considered as mandatory subjects of bargaining: (1) Wages and other types of compensation. It is a legal obligation. If a union engages in an illegal strike. group insurance. unless it can be established that the demand lacks in good faith and is intended as an obstruction to negotiations. IN BARGAINING: EVADING THE MANDATORY SUBJECTS It is the obligation of the employer and the employees’ representative to bargain with each other with respect to “wages. (2) Working hours and working days. pursuant to an honest doubt. he is free to bargain or not to bargain. (6) Seniority. and merit increases all are matters about which employers must bargain collectively. (11) Rent of company houses. (2) refusal to bargain over demands for commission of unfair labor practices. (4) the rank-and-file unit includes supervisors or inappropriate otherwise. (6) the union makes unlawful bargaining demands. including work shifts.8a Repetition in Divine Word University . the Court added in the same case that “it is not obligatory upon either side of a labor controversy to precipitately accept or agree to the proposals of the other. Substantial evidence has been defined as such relevant evidence as a reasonable mind might accept as adequate to support a conclusion. it must materially or significantly affect the terms or conditions of employment. But an erring party should not be tolerated and allowed with impunity to resort to schemes feigning negotiations by going through empty gestures. CBA Imposed on Employer Collective bargaining.

it has been held that a bargaining impasse may be reached over a non-mandatory bargaining subject although that subject is not the sole cause for the parties’ failure to agree.2a Code of Conduct Work rules and regulations are commonly compiled into a booklet usually called “Code of Discipline” or “Code of Conduct. 3. However.5 Arbitration. 3. But an employer’s obligation to enter into a collective bargaining agreement does not require that the employer enter into an unalterable obligation for an extended period of time. Thus. on the inclusion of a provision outside the scope of the statutory bargaining subjects. 3. it may be discussed if both parties agree. Even if the negotiating party thumbs down the other party’s proposals. that are proper subjects of collective bargaining. we do not necessarily find to be the best method of resolving a wage dispute. However.4 Union Discipline Clause An employer may bargain to an impasse over his proposal that the union eliminate a piecework ceiling imposed by a union rule which subjects members to discipline for exceeding the production quota. employee discipline.9 Non-mandatory Subjects An employer cannot insist. even if he acts in good faith. Hardly may the employer contend that they are “non-negotiable” matters. either party may bargain to an impasse as long as he bargains in good faith.6 No-Lockout Clause. When a subject under discussion is not mandatory. an employer’s insistence that its decisions regarding hiring and tenure of employment should not be reviewable by arbitration is not a refusal to bargain. Strike-Vote. Employer rules concerning coffee breaks. the company may keep its position artificially low while the union presents an artificially high position. Hence. 3. An employer bargains to an impasse over a non-mandatory bargaining subject when he refuses to reach any agreement with the union unless the union capitulates to him on that subject.7 Signing Bonus Signing bonus is a grant motivated by goodwill created when a CBA is successfully negotiated and signed between the employer and the union. even though some of the matters covered by the clause are “conditions of employment” which are mandatory subjects of bargaining under 29 USCS Sec. on the fear that a "Solomonic" solution cannot be avoided. a matter involving relations between employees and their unions. Where goodwill does not exist.8 No Duty to Agree Even on Mandatory Subjects The Act does not compel agreements between employers and employees. It may lead to the danger too that neither of the parties will engage in principled bargaining. an employer’s adamant insistence on a bargaining position is not necessarily a refusal to bargain in good faith. but a strike or lockout may not be used to compel a negotiation or agreement. constitute a mandatory subject of collective bargaining. no ULP—as long as the negative reply can be explained in good faith. to the point of creating a bargaining impasse. and neither party is legally obligated to yield even on a mandatory bargaining subject.3 Management Prerogatives Clause An employer does not commit an unfair labor practice by insisting. as are plant safety rules and general regulations. smoking. Where the subject of the dispute is a mandatory bargaining subject. to the point of a bargaining impasse. . LABOR RELATIONS An employer may lawfully bargain to an impasse over his proposal that the collective bargaining agreement include an arbitration clause or a no-strike clause which prohibits the employees from striking during the life of the agreement. a "middle ground approach" instead promotes a "play safe" attitude that leads to more deadlocks than to successfully negotiated CBAs. it is lawful to insist on the inclusion of a provision in a collective bargaining agreement if the provision is within the scope of a statutory subject of bargaining. “Solomonic” Approach We take note of the "middle ground" approach employed by the Secretary in this case which. 158(d). forming part of terms and conditions of employment. Clause Fixing Contractual Term An employer’s statutory duty to bargain requires him to negotiate over the union’s proposal that their agreement include a clause binding him not to lock out the employees. therefore. 3. on the inclusion in the contract of a management prerogatives clause. there is no violation of the duty to bargain—hence. An employer’s refusal to bargaining over the duration of the contract to be entered into is also an unfair labor practice. no signing bonus need be given. if the reason behind a signing bonus is absent. On the other hand. 3. 3. Company rules relating to safety and work practices come within the meaning of the phrase “other terms and conditions of employment” as used in the Act and.(12) Union security arrangements. the payment of a signing bonus cannot be justified and any order for such payment. Thus.2 Workloads and Work Rules Employee workloads are a mandatory subject of bargaining. and therefore not a mandatory bargaining item.” Such dos and don’ts for employees of the enterprise are work rules. constitutes grave abuse of discretion. and many collective bargaining agreements contain a clause permitting termination or modification by either party upon prescribed notice. an employer’s insistence to the point of a bargaining impasse on the union’s withdrawal of fines imposed on memberemployees who crossed a picket line around the employer’s plant is an unlawful refusal to bargain. 3. since the right not to withdraw fines is an internal union affairs. rather than encourage agreement. Without the goodwill. Merely finding the midway point between the demands of the company and the union. and "splitting the difference" is a simplistic solution that fails to recognize that the parties may already be at the limits of the wage levels they can afford. The duty to bargain does not obligate a party to make concessions or yield a position fairly held. why ask for a signing bonus? In contractual terms. to our mind. and dress are also mandatory subjects of bargaining. lunch periods.1a Wage Agreement. a signing bonus is justified by and is the consideration paid for the goodwill that existed in the negotiations that culminated in the signing of a CBA. or No-Strike Clause In short. 3. 3.

the parties’ good faith in negotiations.L. The above rulings do not mean that non-mandatory subjects cannot be proposed or that the proponent cannot demand serious discussion of such proposal. It may also arise because of lack of good faith in bargaining. IN BARGAINING: BAD FAITH Bargaining deadlock may be precipitated not only by hard-line positions on mandatory or non-mandatory subjects. 3. more than formal replies which constitute in effect a refusal to treat with the union. presupposes reasonable effort at good faith bargaining which. Over a non-mandatory subject. The essence of voluntary arbitration. such evasion is ULP. whether a bargaining impasse exists is a matter of judgment dependent on such factors as the bargaining history. AN employer cannot be guilty of a refusal to bargain if the union is not itself bargaining in good faith. on the other hand.While most matters that might be discussed or proposed in collective bargaining are likely to bear some relation. the duty to bargain does not end with the negotiation of the agreement. and other terms and conditions of employment. rather than compulsion of law. the agreeing party. In the NLRB’s view. Stated in another way. a device to constrain the parties to end an impasse and go back to the negotiation table. What the rulings forbid is the posture of making settlement on a non-mandatory subject a precondition to the discussion or settlement of a mandatory subject. is charged with the compulsory arbitration of certain labor cases. after all. otherwise his insistence can be construed as bargaining in bad faith. frequently becomes a problem in itself. and there is no occasion to consider the issue of good faith if a party refuses even to negotiate in fact about any of the mandatory subjects. grandstanding of a negotiator.11 When Is There Deadlock or Impasse? A bargaining impasse over an issue exists where good faith bargaining on the part of the parties has failed to resolve the issue and there are no definite plans for further efforts to break the deadlock.” not all proposals that somehow respond to a problem that is customarily bargained about may themselves be insisted upon to impasse. In fact. The law (Art. Bargaining may proceed smoothly—and this is the wish of most negotiation panels—but it may also be marred by insinuations. 4. Although the union's petition was for "compulsory arbitration. It signals rather the need to continue the bargaining with the assistance of a third party as conciliator or arbitrator whose first aim is to get the parties back to the negotiating table and help them craft a win-win solution. even if tenuous. There is nothing in the law that prohibits these labor arbiters from also acting as voluntary arbitrators as long as the parties agree to have him hear and decide their dispute. and apparently irreconcilable bargaining positions. strike/ lockout is supposed to be a method of resolving an impasse. “Impasse. the length of the negotiations. At this point of bargaining scenario. THIRD U. the 4.11b Strike or Lockout in Case of Deadlock The adamant insistence on a bargaining position to the point where the negotiations reach an impasse does not establish bad faith. that a matter is submitted for arbitration. the parties do not make the subject a mandatory topic of future bargaining." the subsequent agreement of petitioner to submit the matter for arbitration in effect made the arbitration a voluntary one. or imprecise wording of a stipulation. under Art. while meant to be a solution. hours. misunderstandings.” within the meaning of the federal labor laws. 3. autocratic or arrogant stance. The duty to bargain collectively may be violated without a general failure of subjective good faith. deadlock may occur anytime for various reasons such as unacceptability of a proposal or counter proposal. is binding. Moreover. It does not matter that the person chosen as arbitrator is a labor arbiter who. By once bargaining and agreeing on a permissive subject of bargaining. Deadlock develops. Neither can bad faith be inferred from a party’s insistence on the inclusion of a particular substantive provision unless it concerns trivial matters or is obviously intolerable.1 Determination of Good Faith . It requires a sincere effort to reach agreement. It may be construed as evasion of the duty to bargain. and it is no answer to the charge of refusal to bargain in good faith that the insistence on the disputed clause was not the sole cause of the failure to agree or that agreement was not reached with respect to other disputed clauses. and more than a willingness to enter upon a sterile discussion of union-management differences. A party may refuse to enter into a collective bargaining contract unless it includes a desired provision as to a matter which is a mandatory subject of collective bargaining. Good-faith bargaining demands more than sterile and repetitive discussion of formalities precluding actual negotiation. The question as to what are mandatory and what are merely permissive subjects of collective bargaining is of significance on the right of a party to insist on his position to the point of stalemate. the ruling means that bargaining to the point of deadlock may or may not amount to bargaining in bad faith depending on whether the insistence refers to a mandatory or a non-mandatory subject of bargaining. and the contemporaneous understanding of the parties as to the state of negotiations. is that it is by agreement of the parties. If a non-mandatory subject is proposed and agreed upon.P.10 Bargaining to the Point of Impasse: Not necessarily Bad Faith LABOR RELATIONS importance of the issue or issues as to which there is disagreement. 217 of the Labor Code. a party may not insist on bargaining to the point of impasse. Strike/ lockout presents a major deviation from the preferred smooth route of bargaining. 263) recognizes bargaining deadlock as a valid reason to declare a strike or lockout.11a Duty to Bargain When There Is Deadlock or Impasse Deadlock does not mean the end of bargaining. despite noble intentions. The reason is that the duty to bargain requires meeting and convening on terms and conditions of employment but does not require assent to the other party’s proposals. 3. does not conclude in an agreement between the parties. to “wage. although it does not require agreement itself. 3. But strike/ lockout. but a refusal to contract unless the agreement covers a matter which is not a mandatory subject is in substance a refusal to bargain about matters which are mandatory subjects of collective bargaining. by itself.

All provisions in the CBA are supposed to have been jointly and voluntarily incorporated therein by the parties. was to deal with the Union through the employees. However.3b Bad Faith: Inflexible Demands. It requires more than a willingness to enter upon a sterile discussion of union-management differences. these were then translated into specific proposals. The aim.3 Instances of Bad Faith: Delay of. Repeated shifts in position and attitude on the part of an employer whenever a tentative agreement is reached are evidence of a refusal to bargain collectively in good faith. The resolution of surface bargaining allegations never presents an easy issue. or other ways of changing the contents or phraseology of contents of the expiring 4. the charge should be raised while the bargaining is in progress. Surface bargaining is defined as "going through the motions of negotiating" without any legal intent to reach an agreement. When the bargaining is finished and the CBA has been executed voluntarily by the parties. The National Labor Relations Board of the United States reported that “lack of good faith is indicated where the employer engages in unfair labor practices while bargaining with the union. or where it institutes a wage cut by unilateral action and without consulting the majority representative.2 When Can Bargaining in Bad Faith Occur? Bargaining in bad faith is considered ULP under Art. in a word. 4. 4. To do less that is required by the standards of good faith and conduct is a refusal to bargain collectively and violates the spirit and intent of the Act. 141 SCRA 179. Blue Sky Bargaining . Negotiations An unwarranted delay in negotiations may be evidence of bad faith on the part of the employer. This is not a case where private respondent exhibited an indifferent attitude towards collective bargaining because the negotiations were not the unilateral activity of petitioner union. The second sentence of Article 253 explicitly refers to serving a written notice “to terminate or modify” the agreement.” which means a sophisticated pretense in the form of apparent bargaining. With the execution of the CBA. Collective bargaining is not simply an occasion for purely formal meetings between management and labor while each maintains an attitude of “take it or leave it. The CBA is proof enough that private respondent exerted "reasonable effort at good faith bargaining. the company's refusal to make counter-proposal to the union's proposed CBA is an indication of its bad faith. It involves the question of whether an employer’s conduct demonstrates an unwillingness to bargain in good faith or is merely hard bargaining. We have already indicated that one of the central tenets of "the Boulware approach" is that the "product" or "firm. But if one will be charged with bargaining in bad faith. the Company refused to change its position simply because the Union disagreed with it. As negotiations approached. NLRC. 248(g). The duty is not discharged by merely meeting together or simply manifesting a willingness to talk. Strike Amid Negotiation 4. The Company announced in negotiations that it rejected the usual “horse trading” approach to bargaining. cannot serve as basis of holding the management guilty of bad faith in bargaining or in implementing their contract as signed. the prior adjudication of bad faith on an earlier occasion is not itself substantial evidence of present bad faith. does not satisfy the statutory duty to bargain. or Imposing Time Limit on. at bottom. a charge of bargaining in bad faith is too late and untenable.3c Bad Faith: Boulwarism. where many conferences had been held during the period. A fair criterion of good faith in collective bargaining requires that the parties involved deal with each other with open and fair mind and sincerely endeavor to overcome obstacles or difficulties existing between them to the end that employment relations may be established and obstruction to the free flow of commerce prevented. 186 (1986). and usually such intent can only be inferred from the totality of the challenged party’s conduct both at and away from the bargaining table. to convince them that the Company. whose cost and effectiveness were researched in order to determine an attractive bargaining offer within the Company's means. fair offer" must be marketed vigorously to the "consumers" or employees. There is no per se test of good faith in bargaining. and not the Union.4 Not Bad Faith to Propose Modifications to the Expiring CBA It is not bad-faith bargaining when a party proposes modifications to the expiring CBA. bulletins.” Though willing to accept Union suggestions based on facts it might have overlooked.” but presupposes a desire to reach an ultimate agreement to enter into a collective bargaining contract. where it engages in dilatory tactics during negotiations. is their true representative.3a Bad Faith: Surface Bargaining. 4.LABOR RELATIONS The crucial question whether or not a party has met his statutory duty to bargain in good faith typically turns on the facts of the individual case. Modification may mean addition to. Mere pretended bargaining will not suffice. likewise. the Company would use its local management personnel on the desires of the work force on the type and level of benefits. neither must the mind be hermetically sealed against the thought of entering into an agreement. not being part of the signed contract. “Surface bargaining. Take-It-or-Leave-It Bargaining The new plan was threefold. the question of good faith may be a question of credibility. an employer has been held not guilty of bad faith for failing to complete a collective bargaining contract during a 3-year period." The union’s proposal. 4.” Nonetheless. subtraction from. do not agree that the Union is guilty of ULP for engaging in blue-sky bargaining or making exaggerated or unreasonable proposals. with each side eventually compromising initial unreasonable positions. x x x We. rather than with the employees through the Union. letters. Good faith or bad faith is an inference to be drawn from the facts and is largely a matter for the NLRB’s expertise. the Company then attempted to "sell" its proposals to its employees and the general public through a publicity campaign in plant newspapers. even though the employer had insisted on a no-strike clause and had raised wages during negotiations for the purpose of meeting competition. The determination of whether a party has engaged in unlawful surface bargaining is usually a difficult one because it involves. it advertised its initial proposals as “fair” and “firm. a question of the intent of the party in question. bad faith bargaining can no longer be imputed upon any of the parties thereto. To some degree. television and radio announcements and personal contacts. Shifting Bargaining Positions. As the Court held in the case of Kiok Loy v. It has also been held that an employer cannot reject a union’s acceptance of the employer’s counter offer on the ground that the union had earlier rejected the offer. An employer’s proposals which could not be offered with any reasonable expectation that they would be accepted by the union constitute surface bargaining.

5. But at this stage the collective bargaining process is not yet over. 6. and the duty to bargain is still operative because such duty further requires faithful adherence to the contractual provisions. to enable the workers to clearly inform themselves of its provisions. addresses. The arbitral award may result from voluntary arbitration under Art. It is iniquitous to receive benefits from a CBA and later on disclaim its validity.L. but the posting is for the information of. is to ask for and be furnished with the employer’s annual audited financial statements. under Art. The court ruled that these requirements being mandatory. In one case.A. They cannot receive benefits under provisions favorable to them and later insist that the CBA is void simply because other provisions turn out not to the liking of certain employees. Negotiation precisely contemplates proposals and counter-proposals. It does not connote a one-direction movement. Relevant information or data may include information concerning the employees in the bargaining unit. In any of those situations the CBA still needs to be posted in two conspicuous places in the workplace. attested by the union president. Refusal to provide relevant information after the same has been requested constitutes per se violation of the duty to bargain. and delivered. The proper ratifying group is not just the majority union but the majority of all the workers in the bargaining unit represented in the negotiation. the CBA has to be registered with the DOLE regional office. The agreement negotiated by the employees’ bargaining agent should be ratified or approved by the majority of all the workers in the bargaining unit.P. The collective agreement. upon request of the bargaining representative. having been properly ratified. Moreover. An employer is under a duty.1 Unwritten or Unsigned Agreement American courts have held that a collective bargaining agreement is valid though not reduced to writing or signed. Such refusal is an unfair labor practice 7. 7. Multi-employer collective bargaining agreements shall be filed with the Bureau. that the CBA had been duly posted and ratified. Implementation should follow. But we do not declare the CBA invalid or void considering that the employees have enjoyed benefits from it. as required by the Implementing Rules and Regulations. or concerning the financial status of the employer. or vice-versa. the employees affected. is supplying of information to the other party. FOURTH U.2 When Ratification Not Needed Ratification of the CBA by the employees in the bargaining unit is not needed when the CBA is a product of an arbitral award by appropriate government authority or by a voluntary arbitrator. What was excluded from the old CBA may be proposed for inclusion in the forthcoming CBA. The Implementing Rules require posting of the CBA in two conspicuous places for five days. if the violation is “gross. and not ratification by.1 Invalid Ratification .4 Unratified but Implemented The parties to a collective agreement are required to furnish copies to the appropriate Regional Office with accompanying proof of ratification by the majority of all the workers in the bargaining unit. Certiorari on proper grounds is available. does not mean that the arbitral award is beyond question. if neither party requests a written instrument. To require ratification of the CBA in case of arbitral awards will be inconsistent with the nature of arbitration as a dispute-settlement device.” 6. and seniority standing. Violation of the contract amounts to ULP. the CBA submitted to the MOLE did not carry the sworn statement of the union secretary. including the balance sheet and the profit and loss statement. sealed. MANDATORY 6. such as their names.B. 242 one of the rights of a legitimate labor organization which is certified as the exclusive bargaining agent. should be registered with the DOLE Regional Office where the bargaining union is registered or where it principally operates. This was not done in the case at bar. 231 requires the registration within thirty (3) calendar days from execution of the agreement. 263(g).262 or from the secretary’s assumption of jurisdiction or certification of the dispute to the NLRC. The preceding comment. Art. But whichever way it is proposed to go. and a method to expedite the process. 6.5 Giving of Information Part of good-faith bargaining. It should be recalled that under Art.2 Effect of Signing on Other Disputes 8. the negotiations are over. the proposed changes require honest explanation. RATIFICATION REQUIREMENTS BY THE CBU. IN BARGAINING: GROSS VIOLATION OF THE CONTRACT At this stage. EXECUTION OF CONTRACT A party to a collective bargaining may be required to sign a contract where the agreement has been reached by the parties and only one party’s refusal to execute a contract is preventing its being carried into effect. however. 6. the CBA was not posted for at least five days in two conspicuous places in the establishment before ratification. especially where needed to substantiate claims of inability to pay. Such information is crucial in bargaining. as required by law. Moreover. REGISTRATION OF C. The ratification and the manner of doing it are mandatory. 7.3 Ratified but Unsigned Lack of the purely ministerial act of signing the formal contract did not obviate the fact that there was a binding contract.LABOR RELATIONS CBA. to provide information relevant to the issues at the bargaining table. 4. the document has been signed. non-compliance therewith rendered the said CBA ineffective.

AUTOMATIC RENEWAL OF CBA The parties shall continue the CBA in “full force and effect” until they reach a new agreement. the parties may exercise their rights under this Code. All other provisions of the Collective Bargaining Agreement shall be renegotiated not later than three (3) years after its execution. insofar as the representation aspect is concerned. 1994. It can be gleaned from their discussions that it was left to the parties to fix the period. then the matter of retroaction and the possible retroactive date are left to the parties. the parties shall agree on the duration of retroactivity thereof. The denial. its effectivity date is January 1. Any agreement on such other provisions of the Collective Bargaining Agreement entered into within six (6) months from the date of expiry of the term of such other provisions as fixed in such Collective Bargaining Agreement. Notably. If the CBA is the very first for the bargaining unit. renders the contractbar rule inoperative. – Any Collective Bargaining Agreement that the parties may enter into shall. on the other hand. RA No. if entered into within six (6) months from expiry of the old one. Obviously. the subject contract is valid and legal and therefore. Likewise. The parties have to decide it for themselves. it must be understood as encompassing all the terms and conditions in the said agreement. 1989). they are duty-bound to keep the status quo and to continue in full force and effect the terms and conditions of the existing agreement.1 Requirements for Registration Section 2. thus. “All other provisions: simply refers to the rest of the CBA. 9715 (March 21. the Secretary of Labor had occasion to clarify the term of the renegotiated terms of the CBA vis-a-vis the term of the bargaining agent. No petition questioning the majority status of the incumbent bargaining agent shall be entertained and no certification election shall be conducted by the Department of Labor and Employment outside of the sixty-day period immediately before the date of expiry of such five-year term of the Collective Bargaining Agreement. shall retroact to the day immediately following such date. is appealable to the Bureau within ten (10) days or to the Secretary if the denial is by the Bureau. 9. be for a term of five (5) years. the new agreement is concluded after June 30. The issue as to the term of the non-representation provisions of the CBA need not belabored especially when we take note of the Memorandum of the Secretary of Labor dated February 24. Republic Act No. In said memorandum. The same will however not adversely affect the right of another union to challenge the majority status of the incumbent bargaining agent within sixty (60) days before the lapse of the original five (5) year term of the CBA. precisely. It is clear from the above provision of law that until a new Collective Bargaining Agreement has been executed by and between the parties. (b) a statement that the collective bargaining agreement was posted in at least two (2) conspicuous places in the establishment or establishments concerned for at least five (5) days before its ratification. March 31. If any such agreement is entered into beyond six months. therefore. the framers of the law did not give a fixed term as to the effectivity of the terms and conditions of employment. The law does not provide for any exception nor qualification as to which of the economic provisions of the existing agreement are to retain force and effect. In case of a deadlock in the renegotiation of the Collective Bargaining Agreement. that the parties. March 21. and said agreement is ratified by majority of the members in the bargaining unit. . (As amended by Section 21. But if the ensuing CBA is renewal. the Code does not state any rule on the CBA’s effectivity date. Requirements for registration.LABOR RELATIONS It is believed that failure to register the CBA does not make it invalid or unenforceable. economic as well as non-economic other than representational. no outside union can enter the establishment within five (5) years and challenge the status of the incumbent union as the exclusive bargaining agent. binds the contracting parties. is the date an agreement is “concluded” or “entered into”? . if the CBA expired on December 31 and the new one is concluded on. say. however. 253-A a significant change in setting the durations or terms of a CBA at five years for the “representation aspect” and not more than three years for “all other provisions. The CBA is a contract between the parties and the parties must respect the terms and conditions of the agreement.A. Its non-registration. In the event however. 2989) has introduced through Art. by mutual agreement. The conference agreed to make the “terms and conditions” or “economic” provision of the CBA good only for three years so as to protect the economic gains of the workers. the Code offers a formula for the effectivity date. 8. When. ________ Article 253-A. Thus. No other document shall be required in the registration of collective bargaining agreements 1.The application for CBA registration shall be accompanied by the original and two (2) duplicate copies of the following documents which must be certified under oath by the representative(s) of the employer(s) and labor union(s) concerned (a) the collective bargaining agreement. modification or renegotiation of an expiring one. and (c) a statement that the collective bargaining agreement was ratified by the majority of the employees in the bargaining unit of the employer or employers concerned. if by the Regional office. EFFECTIVITY AND RETROACTIVITY OF A C.B. DURATION OF A C. Terms of a collective bargaining agreement.B. 6715. enter into a renegotiated contract with a term of three (3) years or one which does not coincide with the said 5-year term.” The “representation aspect” refers to the identity and majority status of the union that negotiated the CBA as the exclusive representative of the bargaining unit. Article 253-A provides that the ensuing agreement. The application may be denied if the supporting documents are incomplete or not verified under oath. shall retroact to the date following such expiry date. to wit: As a matter of policy the parties are encourages (sic) to enter into a renegotiated CBA with a term which would coincide (sic) with the aforesaid five (5) year term of the bargaining representative. the framers of the law wanted to maintain industrial peace and stability by having both management and labor work harmoniously together without any disturbance.A. If. the terms and conditions of employment (economic and non-economic) cannot be questioned by the employers or employees during the period of effectivity of the CBA. ________ 2.

Government intervention is the exception rather than the rule. 1982). although the former is broader than the latter because an agreement may not have all the elements of a contract. it would contradict the declared policy. is freedom at the workplace.. 1989). ________ 1. 1305 of the Civil Code's definition of "contract" as "a meeting of minds between two persons. 3.The determining point is the date the parties agreed. or (which is) more dangerous in a doubtful case than the issuing of an injunction. the parties must maintain the status quo and must continue in full force and effect the terms and conditions of the existing agreement until a new agreement is reached. the law does not specifically cover the situation where six months have elapsed but the parties have reached no agreement with respect to effectivity. There is no power the exercise of which is more delicate which requires grater caution.A. "agreement" and "contract. 253-A refers merely to an "agreement" which. then. Hence. whether temporary or permanent. Enforced by the court’s contempt powers. In this manner. The issuance of an injunction in the early phases of a strike can critically sway the balance of the economic struggle against the union. ________ 1.e. 1. only in a case involving or growing out of a labor dispute. deliberation.. it is the strong arm of equity that never ought to be extended unless to cases of great injury. benefits and welfare. as provided under Art. Exclusive bargaining representation and workers’ participation in policy and decision-making. allows management and labor to fashion the contents and incidents of their relationship. (As amended by Batas Pambansa Bilang 227. WORKERS’ PARTICIPATORY CONSTITUTIONAL MEANING RIGHT: ITS . subject to such rules and regulations as the Secretary of Labor and Employment may promulgate. we hold that any provision of law should then apply. it cannot be directed against the dispute itself. 1. the issuance of an injunction for any purpose in a labor dispute will generally tip the scales of the controversy. June 1. Article 254 announces the policy that labor disputes are generally not subject to injunction. according to Black's Law Dictionary is "a coming together of minds. true to the tenets of free enterprise system. and sound discretion. however.1 Ten-Year Suspension of CBA ________ Article 254. ________ Article 255.1 Reason of the No-Injunction Policy The labor injunction is an employer’s most effective remedy in labor dispute. not the date they signed. Another legal principle that should apply is that in the absence of an agreement between the parties. so as to be averted only by protection preventive process of injunction. any injunctive order in “non-national interest” disputes can be directed only against the illegal acts being committed in connection with the labor dispute. In this eventuality. The law. This anti-injunction policy applies even as regards wage-fixing by the wage commission or regional wage boards. basically." This is similar to Art. the injury impending or threatened. “to promote and emphasize the primacy of free collective bargaining and negotiations. 6715. for the law abhors a vacuum. – The labor organization designated or selected by the majority of the employees in an appropriate collective bargaining unit shall be the exclusive representative of the employees in such unit for the purpose of collective bargaining. Any provision of law to the contrary notwithstanding." are indeed similar. NO-INJUNCTION POLICY An injunction may require or restrain the doing of an act. the coming together in accord of two minds on a given proposition. March 21. workers shall have the right. 2. Art. to participate in policy and decision-making processes of the establishment where they are employed insofar as said processes will directly affect their rights. as provided in said section of Republic Act 875. workers and employers may form labor-management councils: Provided. where courts of law cannot afford an adequate or commensurate remedy in damages. One such provision is the principle of hold over. However narrow its scope and form. LABOR RELATIONS Moreover. an individual employee or group of employees shall have the right at any time to present grievances to their employer. as modes of settling labor or industrial disputes. If there is dispute between the parties. agreements may be oral or written. If the rule were otherwise. 1315 of the Civil Code. not upon the government. (As amended by Section 22. a valid agreement existed in this case from the moment the minds of the parties met on all matters they set out to discuss. whose premises were picketed by the strikers. under Article 211(a).B. it operates and may be executed only prospectively unless there are legal justifications for its retroactive application. Injunction prohibited. an arbitrated CBA takes on the nature of any judicial or quasijudicial award. – No temporary or permanent injunction or restraining order in any case involving or growing out of labor disputes shall be issued by any court or other entity. the law prevents the existence of a gap in the relationship between the collective bargaining parties.” The policy.2 Injunction Issued by Regular Court. However. the responsibility to solve it devolves upon them primarily. That the representatives of the workers in such labor-management councils shall be elected by at least the majority of all employees in said establishment. mediation and conciliation. except as otherwise provided in Articles 218 and 264 of this Code. When Proper Regular courts are without authority to issue injunction orders in cases involving or originating from labor disputes even if the complaint was filed by non-striking employees and the employer was also made a respondent to the action or even if the complainant was a customer of the strike-bound employer or a sister company of the strike-bound employer. including voluntary arbitration. even without any written evidence of the Collective Bargaining Agreement made by the parties. even a preliminary injunction is an effectual strike-breaking weapon because so much time ordinarily elapses between the issuance of a preliminary injunction and the time when a final decree can be reviewed on appeal. WHEN VALID 3. The court may issue an injunction. i. EXTENSION OF EFFECTIVITY OF C. As in the case of contracts. For this purpose." The two terms. The right must be clear. Republic Act No.1 Effectivity of CBA Concluded After Six Months from Expiration of Old CBA Significantly. that in the absence of a new CBA.

the law (rt. while promoting collective bargaining. Effectively voicing one’s grievance is reserved and hallowed by law. It can also handle projects and programs whoever is the proponent. duties and welfare. and collective bargaining with the employer by unionized employees. COLLECTIVE BARGAINING UNIT (CBU) DEFINED At the enterprise level there are three democratic devices.” we have seen. can deal with the employer on matters affecting the employees’ rights.1 Department’s Promotion of LMC and Other Councils Section 1. union or no union. So these are the different levels in which we hope there would be this democratic participation of workers in vital issues that affect both management and the workers. Such individual right cannot be taken away even by a union’s constitution and by-laws. There are three levels in which employees could influence management in their decision-making. The second level would be the plant or department level. Rather. Even when under investigation. the adjustment of the grievances must be consistent with the terms of the current collective bargaining contract or agreement. And the third will be the shop-floor level. benefits and welfare. benefits and welfare. Decisions made in this level usually refer to scheduling of work. the exercise of management prerogatives was never considered boundless. And it is equally misleading to say that collective bargaining is the end-goal of employee representation. etc. an LMC need not be held back by any of these. and one would be at the corporate level. 2. unassisted by any representative (Art. 3. 255 is meant to be an exception to the exclusiveness of the representative role of the labor organization. individual employees may at any time present grievances directly to the employer for adjustment without the intervention of the bargaining representative. and (from the employer’s viewpoint) less threatening method than collective bargaining. an employee can choose to handle personally his defense. It is here where administrative decisions are made. pricing and marketing policies. They reveal that the intention was to refer to participation in grievance procedures and voluntary modes of settling disputes and not to formulation of corporate programs or policies. it is incorrect to say that the device which secures industrial democracy is collective bargaining and no other. 255. second sentence. or inside or outside a union) to present grievances to their employer at any time. achievement of target quotas. but this fact does not mean that an employee can act only through the representative. It can represent employees across the enterprise. In treating the latter. it was only on March 2. INDIVIDUAL GRIEVANCE As briefly indicated above. Moreover. safety regulations. The law. 6715. Despite so much interest in and promotion of collective bargaining. Collective Bargaining is just one of the forms of employee participation. with the approval of Republic Act No. limited bargaining unit. with or without collective bargaining. instill discipline and improve productivity. American jurisprudence holds that notwithstanding a union’s obligation as exclusive bargaining representative to process the grievances of all bargaining unit employees. except those which are covered by collective bargaining agreements or are traditional areas of bargaining. It is here where the so-called operating decisions are made. acquisitions. Verily. 2. The labor organization is a representative of the collective employees. One thing it cannot and must not do is to replace a union. insofar as said processes will directly affect their rights. even in the absence of said clear provision of law. For this reason the law provides another forum— the labor-management council aside from or instead of a union. the bargaining representative must be given the opportunity to be present at the meeting between the employer and employee. For these reasons. really aims at employee participation in policy and decision-making.The crucial question is: what is the meaning or extent of the workers’ right to participate in policy and decision-making? Enlightening in this regard are the deliberations of the 1986 Constitutional Commission. to advance the cause of industrial peace. firing. reserves the right of an individual employee or group of employees (unionized or ununionized. Decisions made in this level may refer to hiring. namely: airing of grievance even by an individual employee directly to the employer anytime. the real aim is employee participation in whatever form it may appear—bargaining or no bargaining. an LMC or other forum—does not replace the individual employee’s right to pursue grievances. that the law explicitly considered it a State policy "(t)o ensure the participation of workers in decision and policy-making processes affecting the rights.1 Employees’ Participation in Formulating the Code of Discipline Indeed. statutorily embedded. It can exist where there is no union or co-exist with a union. The second sentence of Art.The Department shall promote the formation of labor-management councils in organized and unorganized establishments to enable the workers to participate in policy and decision-making processes in the establishment. This would refer to strategic policies pertaining to the mergers. WORKERS’ PARTICIPATION AS THE REAL OBJECTIVE. in short. and promotion of employees. resource allocations. LABOR RELATIONS While a labor union is hamstrung by such legal prescriptions as formal registration. form committees for myriad purposes. Creation of labor-management and other councils. 1. However. 255) explicitly preserves and respects the right of an individual employee or any group of employees to directly present grievances to their employers at any time. 1989. etc. and proffer proposals unhindered by formalities. training of new employees. management should see to it that its employees are at least properly informed of its decisions or modes action. and without subjecting the employer to liability for refusing to bargain with the union. An LMC is versatile. mandatory and non-mandatory subjects. the presence of an employees’ organization. work methods. But individual representation in dealing or bargaining with the employer is weak. participation in policy and decision-making by employees.--a union. amending Article 211 of the Labor Code. present grievances regardless of the grievant’s rank. THE LMC Article 255 deals with the crucial concept of employee participation. The LMC. is broader. disposition of profits and the like. “Dealing with the employer. whether unionized or not.. . majority status. 4. Each employee retains the right to deal with his or her employer. This is why Art. 277[b])." However. cost and quality control. freer. a line must be drawn between management prerogatives regarding business operations per se and those which affect the rights of the employees. . and vice-versa.

willingly or not. The chosen union is called the bargaining agent. 6. or (11) extent of union organization. (10) desires of the affected employees. REFERENDUM WHERE INTERESTS ARE DISSIMILAR The decision then of the Executive Labor Arbiter in merely directing the holding of a referendum “to determine the will of the service engineers. one of the important factors considered by the NLRB is the reasonable likelihood that the temporary or part-time employees will eventually become adequately identified in employment with the other members of the bargaining unit. trainee or probationary employee. (9) history of collective bargaining. 234. the one where majority of the CBU members belong. Moreover. the Board will look to such factors as: (1) similarity in the scale and manner of determining earnings.” “majority union. and the fact that contemplation of permanent tenure is subject to satisfactory completion of an initial trial period.3 Temporary or Part-Time Employees The NLRB has been upheld in excluding temporary employees from bargaining units of workers in certain jobs.1 Bargaining History Not Decisive Factor The basic test of an asserted bargaining unit's acceptability is whether or not it is fundamentally the combination which will best assure to all employees the exercise of their collective bargaining rights. In determining whether temporary or part-time employees are sufficiently identified with the regular employees.1 Desire of the Employees.” “bargaining agent. sales representatives as to their inclusion or exclusion in the bargaining unit” is the most appropriate procedure that conforms with their right to form. 5. Geographical location can be completely disregarded if the communal or mutual interests of the employees are not sacrificed. its principal being the CBU members themselves. the rationale behind the ineligibility of managerial employees to form.4 Seasonal Employees The full-time seasonal employees who have a reasonable expectation of substantial seasonal employment from year to year have been held properly included in the unit. This community of interest is reflected in groups having substantial similarity of work and duties or similarity of compensation and working conditions. the “CBU” is that group of jobs and jobholders represented by the recognized or certified union when it bargains with the employer. separately. As defined in D. since no individual factor is given by law decisive weight. so as to be properly included in the bargaining unit. or have access to confidential matters of. 5. (2) similarity in employment benefits. persons who exercise managerial functions in the field of labor relations. Or it may be less than all of these two categories. As initially explained in Art. LABOR RELATIONS relations policy. The “group” may comprise all the supervisors or. Industrial experience indicates that the most efficacious bargaining unit is one which is comprised of constituents enjoying a community of interest. (5) frequency of contact or interchange among the employees. the eligibility of probationary employees does not turn on the proportion of such employees who. the stronger its bargaining capacity. FACTORS CONSIDERED The determination of what constitutes a proper bargaining unit lies primarily in the discretion of the Bureau. are insufficient to warrant such employee’s exclusion from a bargaining unit. Within one unit there may be one or more unions. assist or join a labor union or organization. But while the determination of the appropriate collective bargaining unit (CBU) is a primary function of the Bureau. “bargaining unit” refers to a group of employees sharing mutual interests within a given employer unit. a union. comprised of all or less than all of the entire body of employees in the employer unit or any specific occupational or geographical grouping within such employer unit. it is subject to the legal requirement that proper consideration should be given to all legally relevant factors. 5. 5.” and “bargaining representative” are one and the same. provided only that each sub-group is “appropriate. all the rank-and-file population in the company. But if a single unit (only one for all supervisors or only one for all rank-and-file) is not feasible. hours of work and other terms and conditions of employment.” It is appropriate if its members share substantially common concerns and interests. 40-03 which is now the revised Book V of the Rules Implementing the Labor Code.” “bargaining union. (4) similarity in the qualifications.The collective bargaining that the law envisions occurs between the employer and the employees comprised in an “appropriate” collective bargaining unit (CBU) represented by a union. (3) similarity in the kinds of work performed. although the law prefers to have only one grouping per category in one enterprise because the more solid the unit. (8) common supervision and determination of labor- . “Representative union. The bargaining union has to be the majority union. (7) continuity or integration of production processes. As such. The basic test of an asserted bargaining unit's acceptability is whether or not it is fundamentally the combination which will best assure to all employees the exercise of their collective bargaining rights. APPROPRIATENESS OF BARGAINING UNIT. But only one union should represent the whole CBU in bargaining with the employer.O. (6) geographic proximity. The Globe Doctrine The desires of the employees are relevant to the determination of the appropriate bargaining unit. 5. but part-time seasonal employees who receive none of the fringe benefits enjoyed by full-time employees have insufficient common interest with the full-time employees to be included in the same bargaining unit.2 Exclusion of Confidential Employees By the very nature of their functions. 6. No. The bargaining unit therefore is not the same as. fail to continue to work for the employer throughout the trial period. they assist and act in a confidential capacity to. assist or join a labor union equally applies to them. and usually a bigger group than. It refers to the union that represents the CBU in bargaining or dealing with the employer. 5. the law allows subgroups as bargaining units.5 Probationary Employees The fact that an employee is given a classification such as beginner. skills and training of the employees. The relevancy of the wishes of employees concerning their inclusion or exclusion from a proposed bargaining In making judgments about “community of interest” in these different settings.

The exclusion of the subject employees from the rank-and-file bargaining unit and the CBA is definitely a “compelling reason. Considering the spin-offs. a runoff election shall be conducted between the labor unions receiving the two highest number of votes: Provided. Representation Issue in Organized Establishments. hours of work and other conditions of employment. in fact. Determining the scope or “membership” of the bargaining unit is significant and far-reaching because it leads to the determination also of: (1) the employees who can vote in the certification election. The ends of unionism are better served if all the rank-and-file employees with substantially the same interests and who invoke their right to self-organization are part of a single unit so that they can deal with their employer with just one and yet potent voice. the voters are the members of the union. That the total number of votes for all contending unions is at least fifty percent (50%) of the number of votes cast. To have a valid election. When an election which provides for three or more choices results in no choice receiving a majority of the valid votes cast. in determining an appropriate bargaining unit. in strike voting. to selforganization and to enter into collective bargaining negotiations. in CBA ratification the voters are the unit. The different companies may have different volumes of work and different working conditions. In cases where the petition was filed by a national union or federation. The usual exception. The nature of their products and scales of business may require different skills which must necessarily be commensurated by different compensation packages. wages.1 Exception to One-unit Policy The “one unit-one company” rule is not without exception. Moreover. It would then be best to have separate bargaining units for the different companies where the employees can bargain separately according to their needs and according to their own working conditions. 7. 3. or a subdivision thereof. TWO COMPANIES WITH RELATED BUSINESSES Two corporations cannot be treated as a single bargaining unit even if their businesses are related. the test of grouping is mutuality or commonality of interests. In other words. the employees of the different companies see the need to group themselves together and organize themselves into distinctive and different groups. 8. The labor union receiving the majority of the valid votes cast shall be certified as the exclusive bargaining agent of all the workers in the unit. 7. For such reason. The proliferation of unions in an employer unit is discouraged as a matter of policy unless there are compelling reasons which would deny a certain class of employees the right to self-organization for purposes of collective bargaining. when a verified petition questioning the majority status of the incumbent bargaining agent is filed by any legitimate labor organization including a national union or federation which has already issued a charter certificate to its local chapter participating in the certification election or a local chapter which has been issued a charter certificate by the national union or federation before the Department of Labor and Employment within the sixty (60)-day period before the expiration of the collective bargaining agreement. 8. the law requires them to be members of the existing one. which the Constitution guarantees. of course. While the desires of the employees with respect to their inclusion in a bargaining unit is not controlling. 9. the Med-Arbiter shall automatically order an election by secret ballot when the verified petition is supported by the written consent of at least twenty-five percent (25%) of all the employees in the bargaining unit to ascertain the will of the employees in the appropriate bargaining unit. among others. there may be several unions (majority and minority) in one bargaining unit. ________ Article 256. Interests of employees in the different companies perforce differ. The employees' bargaining power with management is strengthened thereby. Instead of forming another bargaining unit. at least a majority of all eligible voters in the unit must have cast their votes. whether union or non-union members. not just the union members. . the one company-one union policy must yield to the right of the employees to form unions or associations for purposes not contrary to law. it shall not be required to disclose the names of the local chapter’s officers and members. and (3) the employees who will be covered by the resulting CBA. plant unit. the stronger is their bargaining capacity. The employees sought to be represented by the collective bargaining agent must have substantial mutual interests in terms of employment and working conditions as evinced by the type of work they performed. the recognition of these exceptions takes into account the policy to assure employees of the fullest freedom in exercising their rights. Single plant units are presumed to be appropriate for purposes of collective bargaining.In organized establishments. 2. not all of the unit. .LABOR RELATIONS unit is inherent in the basic right to self organization. SUMMATION OF SIGNIFICANCE It is helpful to reiterate that the bargaining unit is not the same as the union. SMC is engaged in the business of the beer manufacturing. SINGLE OR “EMPLOYER UNIT” IS FAVORED It has been the policy of the Bureau of Labor Relations to encourage the formation of an employer unit unless circumstances otherwise require.1 Subsidiaries and Spun-Off Corporations Subsidiaries or corporations formed out of former divisions of a mother company following a bona fide reorganization may constitute separate bargaining units. Otherwise stated. is where the employer unit has to give way to the other units like the craft unit. Magnolia is involved in the manufacturing and processing of dairy products while SMFI is involved in the production of feeds and the processing of chicken. (2) the employees to be represented in bargaining with the employer. it is a factor which would be taken into consideration in reaching a decision. one employer enterprise constitutes only one bargaining unit. Distinguishing the CBU from the union is important because— 1. The more solid the employees are. the companies would consequently have their respective and distinctive concerns in terms of the nature of work.” for it completely deprived them of the chance to bargain collectively with petitioner and are thus left with no recourse but to group themselves into a separate and distinct bargaining unit and form their own organization. in a CE the voters are the CBU.

an employer may petition the Bureau for an election. certifying which union won. 1989 and Section 10. If there is no existing certified collective bargaining agreement in the unit. Republic Act No. 2007). 2007). 2007 and became effective on June 14. it shall not be required to disclose the names of the local chapter’s officers and members. the employer shall not be considered a party thereto with a concomitant right to oppose a petition for certification election. of the unorganized. The Bureau shall conduct a certification election within twenty (20) days in accordance with the rules and regulations prescribed by the Secretary of Labor. Whether the proceedings take place in an organized or an unorganized bargaining unit. 9481 which lapsed into law on May 25. run-off. 1989).O. It ends up with a formal and official statement of results. The employer company is “unorganized” where no union has yet been duly recognized or certified as bargaining representative. Appeal from certification election orders. The petition may be filed by any LLO. Conceivably but rarely an employer may also file a petition for a CE. DETERMINING THE BARGAINING UNION: OVERVIEW OF THE METHODS To bargain with the employer. a certification election shall automatically be conducted by the MedArbiter upon the filing of a petition by any legitimate labor organization. or consent election. March 21. In cases where the petition was filed by a national union or federation. no CBA can be entered into. the contest between unions comes at intervals of roughly four years and ten months. Employer as Bystander. including a national union or federation which has already issued a charter certificate to its local/chapter participating in the certification election or a local/chapter which has been issued a charter certificate by the national union or federation. The election is conducted under the supervision and control of DOLE officials. 257. (As amended by Section 12.” The selection of such bargaining agent may take place in an organized or an unorganized establishment. 40-03 drops the “officer or agent” as it states: “Exclusive bargaining representative means any legitimate labor union duly recognized or certified as the sole and exclusive bargaining representative or agent of all the employees in a bargaining unit. The 25% initial support indicates that the petitioner has a fair chance of winning and that the petition is not just a nuisance. the employer shall continue to recognize the majority status of the incumbent bargaining agent where no petition for certification election is filed. 2007 and became effective on June 14.” Where one casting of votes is not decisive enough to elect a union. In an unorganized establishment. In an organized establishment. ________ Article 259. and (2) submitting the list of employees during the pre-election conference should the Med-Arbiter act favorably on the petition. or a consent election is needed only when two or more unions are vying for the “office” of exclusive bargaining representative (EBR). Such appeal shall be decided within fifteen (15) calendar days. a run-off election.At the expiration of the freedom period. 6715. 6715. namely. All certification cases shall be decided within twenty (20) working days. if any. on the other hand. 9481 which lapsed into law on May 25. 9481 which lapsed into law on May 25. after hearing. the petition to hold an election may be filed anytime by any legitimate labor organization (LLO). .In any establishment where there is no certified bargaining agent.In all cases. Republic Act No. 256 speaks of an organized firm. Republic Act No. 2007). (As amended by Section 23. the employer may voluntarily recognize the bargaining agent. as amended by D. Art. Until this representation dispute is resolved. however. If there are obstacles to this. Under the Code a “bargaining representative” is defined as a “legitimate labor organization or any officer or agent of such organization whether or not employed by the employer. in other words. 1989 and Section 11. March 21. but the petition must have the written support of at least twenty-five percent (25%) of the employees in the bargaining unit. Where there is but one . The employer’s participation in such proceedings shall be limited to: (1) being notified or informed of petitions of such nature. Republic Act No. Art. the Bureau shall. the election officials may require a run-off election if certain other conditions exist. ________ Article 258-A. the objective is the same. 6715. Republic Act No. Hence. and whether the proceedings are called consent election or certification election. Petitions in Unorganized Establishments. – When requested to bargain collectively. the employees in the collective bargaining unit (CBU) can be represented by one and only one union which has to be a legitimate labor organization duly designated or selected by the employees in the CBU. ________ Article 257. (As amended by Section 25. “Organized establishment” refers to an enterprise where there exists a recognized or certified sole and exclusive bargaining agent. whether the petition for certification election is filed by an employer or a legitimate labor organization. the election is appropriately called “certification election. – Any party to an election may appeal the order or results of the election as determined by the Med-Arbiter directly to the Secretary of Labor and Employment on the ground that the rules and regulations or parts thereof established by the Secretary of Labor and Employment for the conduct of the election have been violated. No. except within 12 months from a previous CE.” The Implementing Rules. voluntary recognition is not possible. But a certification election. (As amended by Section 24. 2007 and became effective on June 14. March 21. . order a certification election. When an employer may file petition. Republic Act No. as explained below. to identify the union that will represent the employees in bargaining with the employer. ________ LABOR RELATIONS 1. A petition to hold a CE has to be filed within the “freedom period” which means the last sixty (60) days of the fifth year of the expiring CBA. ________ Article 258.

certification proceedings is not a litigation in the sense in which the term is ordinarily understood.1 Fact-Finding In labor legislation. Section 2. If no objection is raised. the recognition will lapse and a rival union may petition for a certification election.O. But VR requires three concurrent conditions. The law does not contemplate the holding of a certification election unless the preliminary inquiry shows a reasonable doubt as to which of the contending unions represents a majority. Hence. the employer and union shall submit a notice of voluntary recognition with the Regional Office which issued the recognized labor union's certificate of registration or certificate of creation of a chartered local. Second. the holding of a certification election is the most democratic method of determining the employees' choice of their bargaining representative. notify the labor union of its findings and advise it to comply with the necessary requirements. any legitimate labor organization may file a petition for certification election in the same bargaining unit represented by the voluntarily recognized union. Simply said. the rivalry must be resolved through an election. the recognition will proceed. If objection is raised. emboldened by their confidence and strengthened by their support shall fight for their rights at the conference table.LABOR RELATIONS union in the bargaining unit and there is ample proof that that union carries the majority of the employees. three methods to determine the bargaining union: (1) voluntary recognition.1 VR Under D. the union voluntarily recognized should be the majority union as indicated by the fact that members of the bargaining unit did not object to the projected recognition. Section 4. 3. Within thirty (30) days from such recognition. and a certification election or consent election will have to take place. It is the appropriate means whereby controversies and disputes on representation may be laid to rest. the law allows the employer to voluntarily recognize such union. the Regional Office shall return the notice for voluntary recognition together with all its accompanying documents without prejudice to its re-submission. therefore. Where neither the employer nor the labor union failed to complete the requirements for voluntary recognition under Section 2 of this Rule within thirty (30) days from receipt of the advisory. Effect of recording of fact of voluntary recognition. As such. All accompanying documents of the notice for voluntary recognition shall be certified under oath by the employer representative and president of the recognized labor union. through the Labor Relations Division shall.) Whenever there is doubt as to whether a particular union represents the majority of the rank-and-file employees. number and substance. FIRST METHOD: VOLUNTARY RECOGNITION (V. in turn. the recognition is barred. record the fact of voluntary recognition in its roster of legitimate labor unions and notify the labor union concerned. the DOLE will be informed and CBA negotiation will commence. First.R. Upon expiration of this one-year period. rejoice when they are able to convince the employer to voluntarily recognize and subsequently bargain with their union. it is not bound by technical rules of evidence. SECOND METHOD: CERTIFICATION ELECTION (C. the last paragraph means that the employer and the union should conclude and register a CBA within one year from the voluntary recognition. and this weight. the Regional Office shall. especially the union leaders and organizers. and (3) consent election.In unorganized establishments with only one legitimate labor organization. Action on the Notice. through their freely chosen representatives. . In an organized setting the employer cannot voluntarily recognized any new union because the law (Art. 2.Where the notice of voluntary recognition is sufficient in form. voluntary recognition is possible only in an unorganized establishment. number and substance and where there is no other registered labor union operating within the bargaining unit concerned.) The employer’s voluntary recognition of the employees’ union significantly facilitates the bargaining process. Requirements for voluntary recognition. and (d) a statement that the labor union is the only legitimate labor organization operating within the bargaining unit. Where the notice of voluntary recognition is insufficient in form. that the will of the workers may be discovered and.From the time of recording of voluntary recognition. No. There are.The notice of voluntary recognition shall be accompanied by the original copy and two (2) duplicate copies of the following documents: (a) a joint statement under oath of voluntary recognition attesting to the fact of voluntary recognition. by the unequivocal vote of the employees themselves. Entry of voluntary recognition shall bar the filing of a petition for certification election by any labor organization for a period of one (1) year from the date of entry of voluntary recognition. The employees. When and where to file. within the same period. (b) certificate of posting of the joint statement of voluntary recognition for fifteen (15) consecutive days in at least two (2) conspicuous places in the establishment or bargaining unit where the union seeks to operate. accompanied by the names of those who support the voluntary recognition comprising at least a majority of the members of the bargaining unit. otherwise. 40-03 Section 1. 3. they can select the exclusive bargaining representative that. . . but an investigation of non-adversary and fact finding character. unless a collective bargaining agreement between the employer and voluntarily recognized labor union was executed and registered with the Regional Office in accordance with Rule XVII of these Rules. within ten (10) days from receipt of the notice. . the certification election should be given every encouragement under the law. the Regional Office. rather than being inhibited and delayed. Exercising their suffrage through the medium of the secret ballot. . in the absence of a legal impediment. Voluntary recognition does away with the more tedious electoral contest between unions. (c) the approximate number of employees in the bargaining unit. the recognized labor union shall enjoy the rights. cannot be determined properly if the right to cross examination is denied. privileges and obligations of an existing bargaining agent of all the employees in the bargaining unit. 2. if there are two or more unions asking to be recognized the employer cannot recognize any of them.E. Third. 256) requires him to continue recognizing and dealing with the incumbent union as long as it has not been properly replaced by another union. only one union is asking for recognition. pursued and realized. But these grounds necessarily depend on the weight of the evidence adduced by the rival unions. or unless ten per centum of the laborers demand this election. (2) certification election with or without run-off. the employer may voluntarily recognize the representation status of such a union. Section 3. That is how union solidarity is achieved and union power is increased in the free society.

1a Certification Election Differentiated from Union Election A union election is held pursuant to the union's constitution and bylaws. it does not thereby lose its representative status. will not file a PCE because it will not contest its own incumbency. The winner in a certification election is an entity. 3. the same shall be automatically consolidated with the Med-Arbiter who first acquired jurisdiction. “No Union” is one of the choices (“candidates”) named in the ballot.4 Where to File the Petition for CE A petition for certification election (PCE) shall be filed with the Regional Office which issued the petitioning union’s certificate of registration or certificate of creation of chartered local. Verily. the company pr the bargaining unit remains ununionized for at least 12 months. through secret ballot. which must be a legitimate labor organization.2 Direct Certification No Longer Allowed Even in a case where a union has filed a petition for certification election. the purpose of a certification election is to ascertain whether or not a majority of the employees wish to be represented by a labor organization and." who also claim majority status. The chapter cannot merely rely on the legitimate status of the mother union.5 When to File the Petition 3. The holding of a certification election at the proper time is not necessarily a mere formality as there was a compelling legal reason not to directly and unilaterally certify a union whose legitimacy is precisely the object of litigation in a pending cancellation case filed by certain "concerned salesmen. which becomes the representative of the whole bargaining unit that includes even the members of the defeated unions. LABOR RELATIONS command. The winners in a union election become officers and representatives of the union only. a petition for a CE may be filed again. by-laws and the list of members who supposedly ratified the same were not attested to by the union president. This amendment affirms the superiority of the certification election over the direct certification which is no longer available now under the change in said provision. when requested to bargain collectively while the majority status of the union is in doubt. After that period. and the constitution and by-laws were not verified under oath. the local union has no personality to file a petition for certification election it not being a legitimate labor organization. The filer will most likely be a union that was defeated in the CE held some five years before. so such order is not appealable. Indeed. He is still tasked to satisfy himself that all the conditions of the law are met. for purposes of collective bargaining. the holding of the CE becomes mandatory if there is no existing registered collective bargaining agreement. union affairs and elections cannot be decided in a non-union activity. However. Where the petitions are filed in different Regional Offices. 3. In a certification election. may file a PCE when it has been asked to bargain. to promote free trade unionism. Whether petitioner or intervenor. In any such petition the incumbent union is a necessary party. A union election should be distinguished from a certification election. unless otherwise authorized by the constitution and bylaws of the union.Certification proceedings directly involve only two issues: (a) proper composition and constituency of the bargaining unit. But some of the employees may not want to have a union. To make it appealable will contradict the objective stated in Article 211.3 Who Files Petition for CE Any legitimate labor organization or any employer. If “No Union” wins. the law did not reduce the Med-Arbiter to an automaton which can instantly be set to impulse by the mere filing of a petition for certification election. all employees belonging to the appropriate bargaining unit can vote. The petition should be dismissed. Such motion is governed by the same rules that apply to a PCE. A union that has no legal personality to file a petition for CE has no personality either to file a petition-in-intervention. But even so. 3. may file a petition for certification election (PCE) In an unorganized establishment one a petition is filed by a legitimate labor organization. which is the process of determining. However. the period known as the 12-month bar. Other unions which are interested in joining a certification election may file a motion for intervention. the principal. hence. a union. The petition shall be heard and resolved by the Med-Arbiter. The tenor of Article 257 is one of . In an organized establishment the incumbent bargaining agent. in which case. it remains the sole bargaining representative until it is replaced by another. the union has to be an LLO. and the right to vote in it is enjoyed only by union members. the employer usually lets the unions interplead to determine who among them will bargain with the employer. the Regional Office in which the petitions are first filed shall exclude all others. by which particular labor organization. the sole and exclusive bargaining agent of the employees in the appropriate bargaining unit. of course. the latter shall indorse the petition to the former for consolidation. The employer. But the application of Article 257 has to be initiated by a genuine petition from a legitimate labor organization. Therefore. and (b) veracity of majority membership claims of the competing unions so as to identify the one union that will serve as the bargaining representative of the entire bargaining unit. a union member who likewise belongs to the appropriate bargaining unit is entitled to vote in said election. Where the constitution. in the affirmative case. The direct certification originally allowed under Article 257 of the Labor Code has apparently been discontinued as a method of selecting the exclusive bargaining agent of the workers. and among the legal requirements is that the petitioning union must be a legitimate labor organization in good standing. If this happens. an employee belonging to the appropriate bargaining unit but who is not a member of the union cannot vote in the union election. Specifically. says Article 258. 3. If the petition for certification election was filed by the federation which is merely an agent. the mere fact that there was no opposition does not warrant a direct certification. the Med-arbiter shall automatically order the conduct of a certification election. And until so replaced it has the right to retain the recognition by the employer. instead of itself filing a petition. Where two or more petitions involving the same bargaining unit are filed in one Regional Office. the reverse is not always true. a forced intervenor. the petition is deemed to be filed by the chapter.

Similarly. the petition. If the unions fail to agree to hold a consent election. He may deny and dismiss. 3. The Med-arbiter. If it has a CBA. To serve as a ground for dismissal of a PCE.8 Action on the Petition: Denial. 3. No. no order or decision shall be issued by the Med-arbiter during the freedom period. the legal personality of the petitioner should have been revoked or cancelled “with finality.7 Action on the Petition: Hearings and Pleadings If the contending unions fail to agree to a consent election during the preliminary conference. then the PCE will no longer be heard and the unions will instead prepare for the consent election. however. (b) contending labor unions. Does the filing of a petition to cancel the petitioner’s registration cause the suspension or dismissal of the PCE? No. may allow the cancellation of scheduled hearing(s). its legitimacy may still be questioned in a separate and independent petition for cancellation to be heard and decided by the BLR Director or the Regional Director himself. But the conduct of the hearings cannot exceed fifteen (15) days from the date of the scheduled preliminary conference/ hearing. The failure of any party to appear in the hearing(s) when notified or to file its pleadings shall be deemed a waiver of its right to be heard. The Med-arbiter shall have control of the proceedings. these facts raise doubt as to its being an LLO. (e) such other matters as may be relevant for the final disposition of the case. The reason for the last-mentioned rule is that during the entire 60-day freedom period. the Med-arbiter shall issue a formal order denying or granting the petition. 3. is the approval of a PCE in an unorganized (ununionized) bargaining unit. the Med-arbiter proceeds to consider the petition. Thus. it can be filed only within the last 60 days of the fifth year of the CBA. The justification for this rule is that the employees’ opportunity to choose a bargaining agent can easily be blocked or forestalled by an employer through the simple expedience of questioning the legitimacy of the petitioner union. But even if the union is listed as LLO or is a party to a CBA. and the med-arbiter may dismiss the PCE. the union selected would be decertified and the whole election proceedings would be rendered useless and nugatory. (c) possibility of a consent election. Never appealable. up to its last day. If at the preliminary conference the unions agree to hold a consent election. however. Grounds The Med-arbiter. the last two are pertinent only to an establishment with a CBA about to expire on its fifth year. or he may grant. after due hearing may dismiss the petition on any of the following grounds: (1) Not an LLO (2) Twelve-month Bar (3) Negotiation Bar or Deadlock Bar (4) No 25% Support (5) Contract Bar. the reason being that the law wants the ununionized unionized. upon the agreement of the parties for meritorious reasons. a certification election cannot be stayed during the pendency of unfair labor practice charge against a union filed by the employer. The cancellation of any scheduled hearing(s) shall not be used as a basis for extending the 15-day period within which to terminate the same. Denial or grant of the petition is always appealable to the Secretary. the mere filing foes not. Postponements or continuances are discouraged. If it has no CBA . After that time the petition shall be considered submitted for decision. certification election may be ordered despite pendency of a petition to cancel the union’s registration certificate founded on alleged illegal strike by the union. or are controlled. NONETHELESS.8a Ground 1: Petitioner not an LLO Excepting Article 258. the door should remain open for any union to file a PCE or a motion for intervention. PCE Filed Outside the Freedom Period The first three grounds are applicable to establishments with or without a CBA. only a legitimate labor organization (LLO) can file a petition for certification election. (d) existence of any of the bars to certification election under Section3 of D. and when the court finds that said union is employer-dominated in the unfair labor practice case. Within ten (10) days from the date of the last hearing. however. the petition may be filed anytime outside the 12-month bar.” The filing or pendency of any inter/intra-union dispute and other related labor relations dispute is not a prejudicial question to any petition for certification election and shall not be a ground for the dismissal of a petition for certification election or suspension of proceedings for certification election. 3. the Med-arbiter may conduct as many hearings as he may deem necessary. by the company or employer. if the petitioning union is not listed in the DOLE’s list of LLOs or it has no CBA registered in the DOLE.6 Action on the Petition: Preliminary Conference The preliminary conference shall determine the following: (a) the bargaining unit to be represented. Suspension of Proceedings: “Company Union” Charge A complaint for unfair labor practice may be considered a prejudicial question in a proceeding for certification election when it is charged therein that one or more labor unions participating in the election are being aided. 40-03. In organized establishments.LABOR RELATIONS The proper time to file a petition for CE depends on whether the CBU has a CBA or not.O. . The reason is that the certification election may lead to the selection of an employer-dominated or company union as the employees’ bargaining representative.

and a CE should not be authorized even though no CBA has been concluded despite passage of twelve months.” The 12-month prohibition presupposes that there was an actual conduct of election i. The principal purpose is to ensure stability in the relationship of the workers and the management. One indicator that it is genuine is the submission of the deadlock to a thirdparty conciliator or arbitrator. if a union has won.e. In other words. Most probably. does the supervisors’ petition need the 25% minimum support? Neither does this bar apply if in fact there was a failure of election because less than majority of the CBU members voted. Also not barred would be a second election held among a group of employees who had not participated in the first election and had not been given the opportunity to be represented as part of the unit in the first election." If the law proscribes the conduct of a certification election when there is a bargaining deadlock submitted to conciliation or arbitration. The support requirement is explained by government policy to favor the self-organization of workers. Not the Enterprise If a company’s rank-and-file employees are unionized but the supervisors are not. A "deadlock" is the counteraction of things producing entire stoppage. Is the 12-month bar violated? Are the recognition and the CBA valid? Excepted from the contract-bar rule are certain types of contracts which do not foster industrial stability. may also prompt the NLRB to entertain a petition for an election during the certification year. does not conclude in agreement between the parties. there was no certification election conducted precisely because the first petition was dismissed. In this case. The situation takes the nature of a “deadlock bar. they are defeating the employees’ wish to have a CBA. The same bar applies if “No Union” won in the previous election. is cavorting with the employer. “Deadlock Bar” Rule. replacing the negotiating union will not help. there was to bargain collectively. 3. which "presupposes reasonable effort at good faith bargaining which. on the ground of a defective petition which did not include all the employees who should be properly included in the collective bargaining unit.LABOR RELATIONS 3. despite attempts to bring an employer to the negotiation table by the "no reasonable effort in good faith" on the employer certified bargaining agent. despite noble intentions. When Not Applicable. it must appear that a sizeable portion of the employees—at least 25%— desires to have a new union.8c Ground 3: Negotiation or Deadlock Bar Neither will a PCE prosper if the negotiation is caught in a deadlock. . a bargaining agent who failed to secure a CBA within 12 months could be suspected as a tool of management and should deserve to be replaced. The one-year rule does not apply to a unit clarification petition filed during the certification year. In a CE. Any stability derived from such contracts must be subordinated to the employees' freedom of choice because it does not establish the kind of industrial peace contemplated by the law. the certification year bar does not apply. 3. if an election had been held but not one of the unions won a PCE may be filed again but only after 12 months. But if circumstances show that the cause of not having concluded a CBA was not the union’s fault. but one a union has established itself as the employees’ representative. The word is synonymous with the word impasse. Thus. In a company still unorganized the workers should find it easy to organize. hence. the court strongly doubted that the union voluntarily recognized by the employer was really the employees’ choice. Within 12 months from that election the employer voluntarily recognized a new union and then concluded with it a CBA. the “No Union” choice won. The law does not want more than one election in a 12-month period. In that case. Ordinarily. On the other hand. A radical change in the size of a bargaining unit within a short period of time. perhaps.8d Ground 4: 25 Percent Support to PCE Article 256 requires that the petition for a CE in an organized establishment which may be filed within the “freedom period” should be supported by at least twenty-five percent (25%) of the bargaining unit. If they fail to do so. Another is that the deadlock is the subject of a valid notice of strike or lockout. To justify the disturbance. another PCE may be filed within six (6) months. it should not be so easy for another union to replace the incumbent. it was a company union. Artificial Deadlock The deadlock that bars a CE must be genuine and not a drama. Without this minimum support the challenge to the incumbent looks like a nuisance. hence. ballots were cast and there was a counting of votes. with more reason should it not be conducted if. such as contracts where the identity of the representative is in doubt. The parties should be allowed to try to resolve their deadlock. Trying to so will disturb the peace in the enterprise. An artificial deadlock—a deadlock prearranged or preserved by collusion of the employer and the majority union—is deception of the workers. The deadlock does not erase that fact that there is negotiation which is a barrier to holding a certification election. such union and the employer must within 12 months start negotiating a collective agreement. not a barrier to a petition for a CE. It is only just and equitable that the circumstances in this case should be considered as similar in nature to a "bargaining deadlock" when no certification election could be held. An election held less than a year after an invalid election is not barred. The “Deadlock Bar” Rule simply provides that a petition for certification election can only be entertained if there is no pending bargaining deadlock submitted to conciliation or arbitration or had become the subject of a valid notice of strike or lockout. the union or unions that lost can petition again for a certification election after 12 months from the last election so as to replace the unproductive bargaining agent which. The CBU. such union should not be blamed. or run-off election or from the date of entry of a voluntary recognition of the union by the employer. there is a deadlock when there is a complete blocking or stoppage resulting from the action of equal and opposed forces. raising a question as to the majority status of the certified representative. consent.8b Ground 2: The 12-month Bar (certification year bar) No petition for a CE may be filed within one year from the date of a valid certification.

again. Election Despite Lack of 25 Percent Support Even in the situation where the 25% is needed. the distinction must be that withdrawals made before the filing of the petition are presumed voluntary unless there is convincing proof to the contrary. the contract bar rule still applies. the “establishment” is considered ununionized. Article 253 of the Labor Code provides that: "it shall be the duty of both parties to keep the status quo and to continue in full force and effect the terms and conditions of the existing agreement during the 60-day period and/or until a new agreement is reached by the parties. but no evidence is presented proving the alleged surreptitious registration. obviously. the withdrawal is deemed involuntary (perhaps pressured by the employer) and it does not necessarily cause the dismissal of the petition The presumption would arise that the withdrawal was procured through duress. the freedom period is the last 60 days of the CBA’s fifth year of the representational aspect. Contract-Bar Rule Applied: Unproved Surreptitious Registration of CBA Even if the existing CBA is registered surreptitiously. as alleged by the petitioner union. Compliance with the said requirement need not even be established with absolute certainty. To clarify terms. The notice period is the last 60 days of the second or third year of the nonrepresentational provisions. in deciding whether the 25% requirement is applicable or not. the freedom period is a political event involving only the unions and the employees. The notice period is an economic event involving the employer and the bargaining union. of course.LABOR RELATIONS NO. it would not be unexpected that the opposite party would use foul means for the subject employees to withdrawal their support. Therefore. when the said agreement is about to expire. 3. coercion or for valuable consideration. because the company is considered unorganized. The contract-bar rule applies.” in contrast to the “freedom period” under Arts. the CBA must be adequate in that it comprises substantial terms and conditions of employment.8e Ground 5: PCE Filed Outside the Freedom Period. the Contract Bar This means that there exists in the bargaining unit a CBA still in effect at the time the PCE is filed. If it happened before the filing. The contract bar rule prohibits the filing of a petition for certification election during the existence of a collective bargaining agreement except within the . The reason for such distinction is that if the withdrawal or retraction is made before the filing of the petition. Otherwise put. when the said agreement is about to expire. hence the subscription requirement has not been met. 253 may be called “renegotiation notice period” or simply “notice/proposal period. Hence. the employees who are supporting the petition become known to the opposite party since their names are attached to the petition at the time of filing. as it is called. Logically." Despite the lapse of the formal effectivity of the CBA the law still considers the same as continuing in force and effect until a new CBA shall have been validly executed. 253. The Court has consistently ruled that "even conceding that the statutory requirement of 30% of the labor force asking for a certification election had not been strictly complied with. any such withdrawal or retraction shows voluntariness in the absence of proof to the contrary. it is enough that it is registered in accordance with Art. makes it easy for workers to unionize. contending labor organizations shall be the exclusive collective bargaining agent. Section 6. The “freedom period” under Articles 253-A and 256 is different from and ought not to be mistaken for the other sixty-day period mentioned in Art. Effect of Withdrawal of Signatories If a petition for a certification election lacks the 25% support because a sizeable number of union members has withdrawn their membership. whereas withdrawals made after the filing of the petition are deemed involuntary. The latter speaks of the right of the parties to propose modifications to the existing CBA. a basic objective of labor relations law. the withdrawal is presumed voluntary and it does not affect the propriety of the petition. In other words. 253-A and 256. the rule prohibits the filing of a petition for certification election during the existence of a collective bargaining agreement except within the freedom period. This requirement may be relaxed. may the petition still be granted? Or must it be dismissed? A critical fact to consider is whether the withdrawal happened before or after the filing of the petition. Contract-Bar Rule Applied: Extended CBA Under Deadlock No petition for certification election may be filed before the onset of the freedom period not after such period. as it is called. 231. is to ensure stability in the relationships of the workers and the management by preventing frequent modifications of any collective bargaining agreement earlier entered into by them in good faith and for the stipulated original period. Registered CBA To bar a certification election it is no longer necessary that the CBA be “certified”. When the withdrawal or retraction is made after the petition is filed. The two periods. Book V of the implementing Rules provides that a petition for certification election or a motion for intervention can only be entertained within sixty days prior to the expiry date of an existing collective bargaining agreement. the names of employees supporting the petition are supposed to be held secret to the opposite party. Hence the requirement for 25% support to the petition does not apply. may coincide on the fifth year of the CBA. if after. excluding. The ban spans a period of five years. the law considers the CBU involved. it becomes apparent that such employees had not given consent to the filing of the petition. The old CBA is extended until a new one is signed. The purpose. Insofar as the supervisors are concerned. In other words. however. not the whole enterprise. Moreover. This. respondent Director is still empowered to order that it be held precisely for the purpose of ascertaining which of the. the petition for CE cannot be granted. Contract-Bar Rule Not Applied: (a) Defective CBA To be a bar to a certification election. the sixty days in Art." freedom period. the last sixty (60) days of the fifth (last) year of the CBA. not the rank-and-file. The petition for CE involves only the supervisors. Whether or not the CBA was indeed surreptitiously registered is a factual matter whose determination is outside the ambit of a petition for certiorari. Rule V. as an exception to the rule that the CBA cannot be modified during its lifetime.

By allowing a PCE during the freedom period the law preserves democratic between unions. They are not reasons for the Med-arbiter to suspend hearing the PCE. it is axiomatic that the med-arbiter should determine the legality of the employees' membership in the union. In the meantime however. Once there is a determination as to the existence of such a relationship.LABOR RELATIONS (b) Referendum to Register on Independent Union This referendum is neither union disaffiliation nor severance. i. it shall be recognized and given effect on a temporary basis. precluding the commencement of negotiations by another union with the management. A CBA automatically renewed usually operates as a bar to a certification election. Order/Decision on the petition. in the same breadth. the med-arbiter can then decide the certification election case.10a Employer a Bystander. In other words. by allowing CBA renegotiation during the same freedom period. 3. 3.9 Invalid Grounds for the Denial/Suspension of the Petition Questions pertaining to the validity of petitioning union’s certificate of registration. We cannot countenance the actuation of the petitioner and the management in this case which is not conducive to industrial peace. It is absurd to suggest that the med-arbiter and Secretary of Labor cannot make their own independent finding as to the sentence of such relationship and must have to rely and wait for such a determination by the labor arbiter or NLRC in a separate proceeding.Within ten (10) days from the date of the last hearing. the said CBA cannot be deemed permanent. during. however. 9 As the authority to determine the employer-employee relationship is necessary and indispensable in the exercise of jurisdiction by the med-arbiter. Any stability derived from such contracts must be subordinated to the employees' freedom of choice because it does not establish the type of industrial peace contemplated by the law. 258-A 3. within that period a petition for CE may be entertained. 3. it was held that the union thus certified would have to respect the contract. given a situation where there is no separate complaint filed with the labor arbiter. In other words. his finding thereon may only be reviewed and reversed by the Secretary of Labor who exercises appellate jurisdiction under Article 259 of the Labor Code. Cannot Oppose PCE 3. as amended. and. the Med-arbiter can order the suspension of the renegotiation until the representation proceedings finally end.e. But if during such period a PCE is filed. such as contracts where the Identity of the representative is in doubt.10 Action on the Petition: Is the Employer a Bystander? See Art. Such a proposition is. no order or decision shall be issued by the Med-Arbiter during the freedom period. but that it may bargain with the management to shorten the life of the contract if it is too long. In so doing. For then. But it is not a bar if the employer has served notice that it will It is apparent that incidental to the power of the med-arbiter to hear and decide representation cases is the power to determine who the eligible voters are. The agreement may be continued in force if the union is certified as the exclusive bargaining representative of the workers or may be rejected and replaced in the event that the rival emerges as the winner. the med-arbiter and/or the Secretary of Labor can never decide a certification election case or any labormanagement dispute properly brought before them as they have no authority to determine the existence of an employer-employee relationship. (c) CBA Signed Before or Within Freedom Period Despite Injunctive Order A collective bargaining agreement which was prematurely renewed is not a bar to the holding of a certification election. It invalidated the hasty recognition of a union and the signing of a CBA with that union where such acts were done while there was a pending petition for certification election by another union. terminate the contract if and when the union no longer represents the majority of the employees. the Med-Arbiter shall issue a formal order granting the petition or a decision denying the same. Med-Arbiter’s Order Appealable to Secretary Does the Med-arbiter or the Secretary of Labor and Employment have the authority to determine the existence of an employer-employee relationship between the parties in a petition for certification election? All issues pertaining to the existence of employer-employee relationship or to eligibility to union membership shall be resolved in the order or decision ranting or denying the petition for certification election. Basic to the contract bar rule is the proposition that the delay of the right to select representatives can be justified only where stability is deemed paramount. to say the least.9a Authority to Decide Existence of Employer-Employee Relationship. But in a 2005 decision the Court took one step further. The law is attempting a balancing feat. those issues do not stall the PCE and they are not grounds for dismissing a PCE. . subject to the results of the certification election. or the validity of registration and execution of collective bargaining agreements shall be heard and resolved by the Regional Director in an independent petition for cancellation of the union’s registration. anomalous. The question may be asked: What would be the effect on the renegotiated CBA if a union other than the one that executed it should win the CE? In a pertinent case. Validity of CBA Signed During Representation Dispute It is true that the contract-bar rule does not apply during the “freedom period”. the Med-arbiter himself may rule on the objection if the pending union is not found in the Department’s roster of legitimate labor organizations or an alleged collective bargaining agreement is unregistered with the Department. However. it is not disallowed by law even while a CBA exists. Moreover. so as not to deprive the workers of the benefits of the said agreement.11 Action on the Petition: Approval Section 13. . In organized establishments. or its legal personality as a labor organization. or after the 60-day freedom period. the law safeguards the opportunity to possibly upgrade the employees’ employment condition. When a collective bargaining agreement is entered into at a time when the petition for certification election had already been filed by a union and was then pending resolution. But it is equally true that the petition for CE does not bar the employer and the incumbent union from renegotiating and renewing the expiring CBA. Excepted from the contract bar rule are certain types of contracts which do not foster industrial stability.. Such indecent haste in renewing the CBA despite an order enjoining them from doing so is designed to frustrate the constitutional right of the employees to self-organization. a CBA may be renegotiated before.

(d) the names of contending labor unions which shall appear as follows: petitioner union/s in the order in which their petitions were filed. The order granting the conduct of a certification election in an organized establishment and the decision dismissing or denying the petition. but never appealable is the approval of any PCE in an enterprise still ununionized.The order granting the conduct of a certification election in an unorganized establishment shall not be subject to appeal. . May a certification election be held legally upon petition of Union B while a petition for CE by Union A is pending on appeal at the Office of the Secretary? No. if necessary.LABOR RELATIONS The order granting the conduct of a certification election shall state the following: (a) the name of the employer or establishment. the Election Officer shall note such fact in the minutes. the Med-Arbiter shall enter the finality of the order/decision in the records of the case and cause the transmittal of the records of the petition to the Regional Director. Period to Reply. shall deprive the nonappearing party or the employer of its right to be furnished notices of subsequent pre-election conferences and to attend the same.Within forty-eight (48) hours from notice of receipt of decision by the parties and finality of the decision. In all cases. which shall be scheduled within ten (10) days from receipt of the assignment. may be appealed to the Office of the Secretary within ten (10) days from receipt thereof. or where necessary. Section 4. the appeal should first be resolved. Minutes of pre-election conference. The pre-election conference shall set the mechanics for the election and shall determine. In short. 3. . Section 19. .The Election Officer shall cause the posting of notice of election at least ten (10) days before the actual date of the election in two (2) most conspicuous places in the company premises. unless circumstances require otherwise. . Posting of Notices. however. Within twenty-four (24) hours from receipt of the appeal. .12 Appeal of Order Granting or Denying Petition Section 17. time and place of the election. including the reason for refusal to sign the same. the Election Officer shall cause the issuance of notice of preelection conference upon the contending unions and the employer. (d) name of watchers or representatives and their alternates for each of the parties during election. Appeal. Where to file appeal. whether in an organized or unorganized establishment. . Section 22. the Regional Director shall cause the raffle of the case to an Election Officer who shall have control of the pre-election conference and election proceedings. and (e) a directive upon the employer and the contending union(s) to submit within ten (10) days from receipt of the order. (c) a statement that none of the grounds for dismissal enumerated in the succeeding paragraph exists. as the case may be.13 Conducting the CE 3. Any issue arising therefrom may be raised by means of protest on the conduct and results of the certification election. (b) names of all contending unions. (e) mechanics and guidelines of the election. Decision of the Secretary. The decision of the Secretary shall become final and executory after ten (10) days from receipt thereof by the parties. 3. the certified list of employees in the bargaining unit. Section 21. the Regional Director shall cause the transmittal thereof together with the entire records of the case to the Office of the Secretary. . specifically stating the grounds relied upon by the appellant with the supporting arguments and evidence.Within twenty-four (24) hours from receipt of the assignment for the conduct of a certification election. Nothing herein. Section 6. The reason is sound and simple: the law wants to unionized the ununionized. Transmittal of records to the Regional Office. which shall not be later than forty-five (45) days from the date of the first pre-election conference. The pre-election conference shall be completed within thirty (30) days from the date of the first hearing. Where any of the parties refuse to sign the minutes. Implementation of the decision shall not be stayed unless restrained by the appropriate court. forced intervenor. . The appeal shall be verified under oath and shall consist of a memorandum of appeal. No motion for reconsideration of the decision shall be entertained. and shall be on a regular working day and within the employer's premises. Section 2. the entire records of the case shall be remanded to the Regional . (c) number and location of polling places or booths and the number of ballots to be prepared with appropriate translations. Section 20. Raffle of the case.The Secretary shall have fifteen (15) days from receipt of the entire records of the petition within which to decide the appeal. among others.13a Pre-election Conference Section 1. the following: (a) date.The memorandum of appeal shall be filed in the Regional Office where the petition originated. Section 18.Where no appeal is filed within the ten-day period. denial of any petition for CE is always appealable. Section 3. (c) the description of the bargaining unit and the list of eligible and challenged voters. Waiver of right to be heard.The Election Officer shall keep the minutes of matters raised and agreed upon during the pre-election conference.Failure of any party to appear during the pre-election conference despite notice shall be considered as a waiver to be present and to question or object to any of the agreements reached in said pre-election conference. Finality of Order/Decision. The filing of the memorandum of appeal from the order or decision of the Med-Arbiter stays the holding of any certification election. (b) list of eligible and challenged voters. . the payrolls covering the members of the bargaining unit for the last three (3) months prior to the issuance of the order Office of origin for implementation. The parties shall acknowledge the completeness and correctness of the entries in the minutes by affixing their signatures thereon. copy furnished the contending unions and the employer. . The notice shall contain: (a) the date and time of the election.Within twenty-four (24) hours from receipt of the notice of entry of final judgment granting the conduct of a certification election. The reply shall be filed directly with the Office of the Secretary. the parties shall be furnished a copy of the minutes. and no union.A reply to the appeal may be filed by any party to the petition within ten (10) days from receipt of the memorandum of appeal. (b) the description of the bargaining unit. Pre-election conference. .

affiliate with.". 3. by which particular labor organization. have the right to vote. Secrecy and sanctity of the ballot." Collective bargaining covers all aspects of the employment relation and the resultant CBA negotiated by the certified union binds all employees in the bargaining unit. and to repeat. shall be the exclusive representative of the employees in such unit for the purpose of collective bargaining. . On the contrary. Section 8. After all. the unjustified refusal of a company to submit the payroll in its custody. the information required to be included therein and the duration of posting cannot be waived by the contending unions or the employer. . All they need to be eligible to support the petition is to belong to the "bargaining unit. In Philippine jurisprudence it is now settled that employees who have been improperly laid off but who have a present. The list of voters should be based on the employer-certified list of employees in the CBU or payrolls. The law refers to "all" the employees in the bargaining unit. despite efforts to make it produce it. inclusion-exclusion. But their votes shall be segregated and sealed in individual envelopes in accordance with Sections 10 and 11 of this Rule. all rank-and-file employees. are being denied the right of self-organization and collective bargaining. The minority employees — who wish to have a union represent them in collective bargaining — can do nothing but wait for another suitable occasion to petition for a certification election and hope that the results will be different. 255 of the Labor Code which states that the "labor organization designated or selected by the majority of the employees in an appropriate bargaining unit . and to maintain membership therein. the plainly discernible intendment of the law is to grant the right to vote to all bona fide employees in the bargaining unit. affiliate with. not one of the unions which vied for certification as sole and exclusive bargaining representative. shall before the start of the actual voting. “It should ideally be the payroll which should have been used for the purpose of the election. all contested voters shall be allowed to vote. is subsumed in the right to join. corresponding to the number of voters and a reasonable number of extra ballots.” Only the employees who are directly employed by the employer and working along the activities to which the employer is engaged and linked by employer-employee relationship are qualified to participate in the certification election. or assist any union. and no union may properly be certified as the exclusive representative of the workers in the bargaining unit in dealing with the employer regarding wages. They may not and should not be permitted. INK Believers May Vote In the CE all members of the unit. Hence. with minimum interference on the part of the other contracting party (indirect employer). The purpose of a certification election is precisely the ascertainment of the wishes of the majority of the employees in the appropriate bargaining unit: to be or not to be represented by a labor organization. This principle is clearly stated in Art. If majority of the unit members do not want a union.13b Conducting the CE: The Voters One of the matters the pre-election conference threshes out is the list of voters." is specious. If the employer does not submit the list or payrolls. and in the affirmative case. no one should be compelled to exercise such a conferred right. The respondents' argument that the petitioners are disqualified to vote because they "are not constituted into a duly organized labor union" — "but members of the INK which prohibits its followers. the right NOT to join. inspect the polling place. so also. are eligible to vote in certification elections. from joining or forming any labor organization" — and "hence. on religious grounds. In case of disagreement over the voters' list or over the eligibility of voters. Even the list of employees submitted to the SSS may be used as basis to comprise the list of voters for the CE. not being laborers or employees of the latter.To ensure secrecy of the ballot.The Election Officer shall prepare the ballots in English and Filipino or the local dialect. Neither law. However. the Election Officer. All ballots shall be signed at the back by the Election Officer and authorized representative of each of the contending unions and employer. are not qualified to participate therein. Preparation of ballots. and to disaffiliate or resign from a labor organization.13c Conducting the CE: The Voting Section 7. 10 Thus. hours and other terms and conditions of employment. Section 5. It is self-evident that just as no one should be denied the exercise of a right granted by law. the employees concerned could still qualify to vote in the elections. 3. probationary or permanent. The Code makes no distinction as to their employment status as basis for eligibility in supporting the petition for certification election. then their wishes must be respected. however. the SSS list is a public record whose regularity is presumed.LABOR RELATIONS The posting of the notice of election. Union membership is not a prerequisite. compelled resort to the SSS list as the next best source of information. if the dismissal is under question. the union may submit its own list. The right to form or join a labor organization necessarily includes the right to refuse or refrain from exercising said right. or assist any union. the ballot boxes and the polling booths. If the results of the election should disclose that the majority of the workers do not wish to be represented by any union. Failure or refusal to sign the Probationary Employee In a certification election all rank-and-file employees in the appropriate bargaining unit are entitled to vote. to impose their will on the majority — who do not desire to have a union certified as the exclusive workers' benefit in the bargaining unit — upon the plea that they. “irrespective of the period of their employment. together with the authorized representatives of the contending unions and the employer. as expressed in the CE. whether union members or not.” Employees of an independent contractor who undertakes to do a piece of work for his account and responsibility. Dismissed Employee An employee who has been dismissed from work but has contested the legality of the dismissal in a forum of appropriate jurisdiction at the time of the issuance of the order for the conduct of a certification election shall be considered a qualified voter. whether they are members of a labor organization or not. as in the case now at bar whereby a case of illegal dismissal and/or unfair labor practice was filed. the minority workers. Logically. unabandoned right to or expectation of re-employment. The fact that a person has opted to acquire membership in a labor union does not preclude his subsequently opting to renounce such membership.All employees who are members of the appropriate bargaining unit sought to be represented by the petitioner at the time of the issuance of the order granting the conduct of a certification election shall be eligible to vote. have a substantial interest in the selection of the bargaining representative. Qualification of voters. administrative rule nor jurisprudence requires that only employees affiliated with any labor organization may take part in a certification election. unless his/her dismissal was declared final judgment at the time of the conduct of the certification election. . such majority decision must be respected.

In no case. The ballots and the tally sheets shall be sealed in an envelope and signed by the Election Officer and the representatives of the contending unions and transmitted to the Med-Arbiter.13f Failure of Election: Motion for a Remedial Election Section 17. If the voter inadvertently spoils a ballot. (b) no challenge or eligibility issue was raised or. together with the minutes and results of the election. (b) that the voter is not a member of the appropriate bargaining unit which petitioner seeks to represent. there being a valid election. Effect of failure of election. Section 11. even if one was filed. . The sealed envelope shall then be signed by the Election Officer and the representatives of the contending unions and employer. . . Action on the motion. Section 18.An authorized representative of any of the contending unions and employer may challenge a vote before it is deposited in the ballot box only on any of the following grounds: (a) that there is no employer-employee relationship between the voter and the company. Protest. shall the election officer rule on any of the grounds for challenge specified in the immediately preceding section. the Election Officer shall declare a failure of election in the minutes of the election proceedings. Failure of any party or the employer or his/her/their representative to appear during the election proceedings shall be considered a waiver to be present and to question the conduct thereof. the protest shall be deemed dropped. the exercise of which is their sole prerogative. the Med-Arbiter shall declare such fact in the order. however.Any party-in-interest may file a protest based on the conduct or mechanics of the election. the Election Officer shall place the ballot in an envelope which shall be sealed in the presence of the voter and the representatives of the contending unions and employer. and the ground for the challenge. The envelopes shall be opened and the question of eligibility shall be passed upon only if the number of segregated voters will materially alter the results of the election. but a brazen interference as well with the employees right to self-organization. It is the employee’s right to hold a certification election. Proclamation and certification of the result of the election. . Such protests shall be recorded in the minutes of the election proceedings. privileges and obligations of a duly certified collective bargaining agent from the time the certification is issued. It is not only an act of arrogance.The election precincts shall open and close on the date and time agreed upon during the pre-election conference.The Election Officer shall rule on any question relating to and raised during the conduct of the election. the Election Officer shall immediately schedule the conduct of another certification or consent election within fifteen (15) days from receipt of the motion and cause the posting of the notice of certification election at least ten (10) days prior to the scheduled date of election in two (2) ULP in Relation to Election The employer deserves our strongest condemnation for ignoring the petitioners' request for permission for some time out to attend to the hearing of their petition before the med-arbiter. Conduct of election and canvass of votes. he/she shall return it to the Election Officer who shall destroy it and give him/her another ballot. Section 13.When a vote is properly challenged. within five (5) days after the close of the election proceedings. The winning union shall have the rights.A failure of election shall not bar the filing of a motion for the immediate holding of another certification or consent election within six (6) months from date of declaration of failure of election. the resolution of the same will not materially change the results of the elections. It is unfair labor practice for the company to suspended the workers on the ground of "abandonment of work" on the day on which the pre-election conference had been scheduled.13d Conducting the CE: Canvassing of Votes The voting shall close on the date and time agreed upon in the preelection conference. within the same period from receipt of the minutes and results of election. it shall be considered spoiled. On-the-spot questions. under any of the following conditions: (a) no protest was filed or. defaced or left unfilled in such a manner as to create doubt or confusion or to identify the voter. contrary to the prohibition of the Labor Code against unfair labor practices. Section 14.Within twenty-four (24) hours from receipt of the motion. provided no protest is recorded in the minutes of the election. . Procedure in the challenge of votes. 3.The voter must put a cross () or check () mark in the square opposite the name of the union of his choice or "No Union" if he/she does not want to be represented by any union. If not recorded in the minutes and formalized within the prescribed period. with specific grounds. . 3. within twenty-four (24) hours from the completion of the canvass. Where the election is conducted in more than one region. the Election Officer shall transmit the records of the case to the MedArbiter who shall. consolidation of results shall be made within fifteen (15) days from the conduct thereof. . Section 15. Section 9. Marking of votes. Certification of Collective Bargaining Agent. Within twenty-four (24) hours from final canvass of votes. Section 19. . issue an order proclaiming the results of the election and certifying the union which obtained a majority of the valid votes cast as the sole and exclusive bargaining agent in the subject bargaining unit.The union which obtained a majority of the valid votes cast shall be certified as the sole and exclusive bargaining agent of all the employees in the appropriate bargaining unit within five (5) days from the day of the election. The Election Officer shall indicate on the envelope the voter's name. Canvassing shall immediately follow. .13e Who Wins in CE: Proclamation and Certification Section 20. when perfected. Section 10.Where the number of votes cast in a certification or consent election is less than the majority of the number of eligible voters and there are no material challenged votes." 3. Protests not so raised are deemed waived.The votes shall be counted and tabulated by the Election Officer in the presence of the representatives of the contending unions. the union or employer challenging the voter. The protesting party must formalize its protest with the Med-Arbiter.LABOR RELATIONS ballots shall be considered a waiver thereof and the Election Officer shall enter the fact of such refusal or failure in the records of the case as well as the reason for the refusal or failure to sign. the same was not perfected within the five-day period for perfection of the protest. Canvassing of votes. Failure of election. even if one was raised. . If a ballot is torn. Section 12. Upon completion of the canvass. . arguments and evidence. Section 16. Where majority of the valid votes cast results in "No Union" obtaining the majority. Challenging of votes. . the Election Officer shall give each representative a copy of the minutes of the election proceedings and results of the election. The opening and canvass shall proceed immediately after the precincts have closed. A company commits unfair labor practice where it issued suspension and termination orders while the employees are in the midst of a certification election preliminary to a labor management conference "to normalize employer-employee relations. The Election Officer shall note all challenges in the minutes of the election and shall be responsible for consolidating all envelopes containing the challenged votes.

Protest by Employer The manner in which the election was held could make the difference between industrial strife and industrial harmony in the company. provided.1 Exclusive Bargaining Agent Represents Even the Minority Union On the part of the union that won in the certification election. Qualification of voters. Effects of consent election.O. The same guidelines and list of voters shall be used in the election. 3. 4. to find out which union should serve as the bargaining agent.. Collective bargaining contemplates the representation of the collective bargaining interests of all the employees in the particular bargaining unit by a properly selected bargaining agent.13g Run-off Election Section 1. The difference is that a certification is ordered by the Department while a consent election is voluntarily agreed upon by the parties. the running of the one-year period shall be suspended until the decision on appeal has become final and executory. orderly and credible.The same voters' list used in the certification election shall be used in the run-off election. 40-E-03 (dated 30 November 2005) 3. does not lose its character as a lawful labor organization entitled to protection under Article 246 which makes it unlawful for any person to abridge the right to self-organization. constitutes the agent as the representative of all the employees within the particular bargaining unit. Where an appeal has been filed from the results of the consent election. THIRD METHOD: CONSENT ELECTION Like a CE. the Election Officer shall motu propio conduct a run-off election within ten (10) days from the close of the election proceedings between the labor unions receiving the two highest number of votes. . and No Union. When proper. the parties agree to hold a consent election. not one of the unions obtained the majority ofthe valid votes. namely: 1. However. . But certainly an employer has an abiding interest in seeing to it that the election is clean. 5. the exclusive bargaining agent of all the workers in the bargaining unit. It represents even the members of the minority union.1 Effect of Consent Election Section 23. The selection of a bargaining agent by a majority of such employees. if there is one. Section 2. although the union has every right to represent its members in the negotiation regarding the terms and conditions of their employment. THE WINNER REPRESENTATIVE AS SOLE AND EXCLUSIVE To summarize. e. and there are no objections or challenges which if sustained can materially alter the results. The Act provides that such bargaining agent shall be the “exclusive” representative of the employees. The ballots in the run-off election shall provide as choices the unions receiving the highest and second highest number of the votes cast.g.When an election which provides for three (3) or more choices results in none of the contending unions receiving a majority of the valid votes cast. its purpose is the same. the majority union).. and upon the intercession of the Med-Arbiter. peaceful.3 Is the Bargaining Union a Majority Union? 4. Two or more unions are involved in a consent election.e. and is certified as. . 5. 3. But it cannot resort to work stoppage or strike because strike is reserved. the results thereof shall constitute a bar to another petition for certification election.Where a petition for certification election had been filed. Union One. And like certification election. under express provisions of the Act.LABOR RELATIONS most conspicuous places in the establishment. the results thereof shall constitute a bar to the holding of a certification election for one (1) year from the holding of such consent election. that the total number of votes for all contending unions is at least fifty (50%) percent of the number of votes cast. Rule IX. with or without the intervention of the Department. The labor union receiving the greater number of valid votes cast shall be certified as the winner. Where no petition for certification election was filed but the parties themselves agreed to hold a consent election with the intercession of the Regional Office. it becomes. Union Two. the election presented a least three choices. 4.” 3. It can even engage in peaceful concerted activity. a run-off election is proper if five concurrent conditions exist.14 Appeal to Secretary as to Election Result—See D. . although a loser in the election. subject to Section 20. The term “exclusive” was interpreted under the original Act to mean that the employer must treat with the representative to the exclusion of all other claiming bargaining agents. Notice of run-off elections shall be posted by the Election Officer at least five (5) days before the actual date of run-off election. a valid election took place because majority of the CBU members voted. No.15 Election Irregularities. "No Union" shall not be a choice in the run-off election. (see also Article 255) May a minority union charge the employer with ULP? Yes. 2. namely. 5. meaning there are at least two union “candidates. This duty obligates the majority union to serve the interest of all members of the whole bargaining unit without hostility or discrimination. under Article 263. 5. it cannot negate their wishes on matters which are purely personal and individual to them. What can the minority do? The minority union. there is no unresolved challenge of voter or election protest. consent election may take place in an unorganized or organized establishment. the total number of votes for all the unions is at least 50% of the valid votes cast. 5. the Duty of Fair Representation What if the majority union neglects the interest of the employees in the minority union? The majority union in such case will be violating its duty of fair representation. It can file an individual or group complaint for ULP. to an exclusive bargaining representative (i.2 Protection and Capacity of the Loser. What an employer is prohibited from doing is to interfere with the conduct of the certification election for the purpose of influencing its outcome.

This is also in consonance with the principle enunciated in the Labor Code that all doubts should be resolved in favor of the worker. Article 256 therefore does not support Article 255. are merely suppletory and can neither contradict nor undermine the terms found in the CBA.A.1 Construing the Contract The CBA being a contract. the aggrieved party has the right to go to court for redress. however. 261 which limits that kind of ULP to “gross violations” only. “contract negotiations are the legislative process of collective bargaining. parties to a Collective Bargaining Agreement shall name and designate in advance a Voluntary Arbitrator or panel of Voluntary Arbitrators. 248 considers as unfair labor practice any act that violates an existing collective bargaining agreement. CBA provisions should be "construed liberally rather than narrowly and technically. Compliance with a CBA is mandated by the expressed policy to give protection to labor. Grievance machinery and voluntary arbitration. and the courts must place a practical and realistic construction upon it. they are incongruent. .The parties to a Collective Bargaining Agreement shall include therein provisions that will ensure the mutual observance of its terms and conditions. if the terms of the contract are clear. They shall establish a machinery for the adjustment and resolution of grievances arising from the interpretation or implementation of their Collective Bargaining Agreement and those arising from the interpretation or enforcement of company personnel policies.B. pursuant to the selection procedure agreed upon in the Collective Bargaining Agreement. It is a means to an end. or include in the agreement a procedure for the selection of such Voluntary Arbitrator or panel of Voluntary Arbitrators. the execution of a contract does not complete collective bargaining.The minority union’s entitlement to protection gains greater force and respect if it is remembered that the bargaining union does not always comprise the numerical majority in the bargaining unit. The intention of the parties is primordial. Piece rates and work The provisions of the collective bargaining agreement must be respected since its terms and conditions "constitute the law between the parties. But this law must be related to Art. the day-to-day working out of plant problems is its administrative or judicial aspects. In the same vein. The intent of the parties should be ascertained by considering relevant provisions of the said CBA. In other words. 5. that only provisions embodied in the CBA should be so interpreted and complied with. Any doubts or ambiguity in the contract between management and the union members should be resolved in the light of Article 1702 of the Civil Code that: In case of doubt. Unilaterally formulated rules and policy can neither contradict nor undermine the CBA provisions. the Board shall designate the Voluntary Arbitrator or panel of Voluntary Arbitrators. in fact. CONTRACT ADMINISTRATION AS PART OF THE DUTY TO BARGAIN Collective bargaining is not an end in itself. ________ Title VII-A GRIEVANCE MACHINERY AND VOLUNTARY ARBITRATION Article. It goes without saying. such as the rules on trips abroad formulated by petitioner [school] a few months before Legaspi’s application. 2. For this purpose. Art. In the event that an obligation therein imposed is not fulfilled. LAW BETWEEN THE PARTIES In pursuing their claim for retirement benefits under the CBA. containing as it does the agreed terms of employment of the employee with his employer. and the letting of subcontracts. which shall act with the same force and effect as if the Arbitrator or panel of Arbitrators has been selected by the parties as described above. There will be ambiguities in the agreement to be clarified and gaps be filled. The result may be a bargaining agent that does not carry the mandate of the majority of the employees. job content. But contracts which are not ambiguous are to be interpreted according to their literal meaning and should not be interpreted beyond their obvious intendment." This is founded on the dictum that a CBA is not an ordinary contract but one impressed with public interest. All grievances submitted to the grievance machinery which are not settled within seven (7) calendar days from the date of its submission shall automatically be referred to voluntary arbitration prescribed in the Collective Bargaining Agreement. unilaterally imposed orders or rules qualifying the terms contained in the agreement are subordinate to the CBA. However narrowly it may canalize its course. Since the collective bargaining agreement is considered the law between the parties. the rules embodied in the Civil Code on interpretation of contracts should govern.4 May the Bargaining Agent Represent Retired Employees? LABOR RELATIONS assignments frequently require day-to-day adjustments. At most. all labor legislation and all labor contracts shall be construed in favor of the safety and decent living for the laborer. In case the parties fail to select a Voluntary Arbitrator or panel of Voluntary Arbitrators. preferably from the listing of qualified Voluntary Arbitrators duly accredited by the Board." Those who are entitled to its benefits can invoke its provisions. C. but if the words appear to be contrary to the evident intention of the parties. as may be necessary. Strengthening the binding force of the CBA.. ________ 1. therefore. the claimant retirees are represented by the union of which they were former members. Article 256 requires. for a union to win a CE. the literal meaning of the stipulations shall control. only a majority of the valid votes cast. periodic decisions must be made concerning such matters as shop rules. the duty to bargain continues into the contract administration stage. Article 256 requires only majority of the valid votes cast. giving due consideration to the context in which it is negotiated and purpose which it is intended to serve. Whereas Article 255 requires selection by majority of the unit members. such rules. which is the making of collective agreements stabilizing employment relations for a period of time with results advantageous both to the worker and the employer. In effect. 260. 2.2 Proposal Contained in Minutes but Not in the CBA Itself . 2. The majority of the valid votes may be lesser that the majority of the employees in the bargaining unit. the latter shall prevail over the former.

they would be exposed to the temptation of colluding with the union during the negotiations to the detriment of the employer. be allowed to share in the concessions obtained by the labor union through collective negotiation. even after he has resigned from said union. BINDING EFFECT OF AGREEMENT A collective bargaining agreement entered into by officers of a union.4 Wiley Doctrine The disappearance by merger of a corporate employer which has entered into a collective bargaining agreement with a union does not automatically terminate all rights of the employees covered by the agreement. They cannot obtain indirectly what they cannot do directly. 5. Effects of merger or consolidation. the separate existence of the other constituent corporations ceases. against the individual union members in matters that affect them peculiarly.2 Managers Not Entitled to CBA Benefits. Section 80. 5. A labor contract merely creates an action in personally and does not create any real right which should be respected by third parties. since it is a joint and several contract of the members of the union entered into by the union as their agent.1 Persons Entitled to Benefits It is true that whatever benefits the majority union obtains from the employer accrue to its members as well as to non-members. managerial employees cannot. There can be no conflict of interest where the employer himself voluntarily agrees to grant such benefits to managerial employees.LABOR RELATIONS A proposal mentioned in the negotiation but not embodied in the collective bargaining contract itself is not part of the CBA. as agent of the members. 4. 5." and "a union member who is employed under an agreement between the union and his employer is bound by the provisions thereof.3 Merger and Consolidation Merger takes place when two or more corporations join into a single corporation which is one of the merging corporations. the employer may enter into particular contracts of employment with his employees even though both are bound by the general contract as to wages and working conditions. But if the agreement merely fixes wages and working conditions. cannot claim the benefits contained in the CBA negotiated by the workers under them. who are not allowed to unionize to bargain collectively with the employer. However. LAW DEEMED WRITTEN IN CONTRACT 5. as a zipper does. 3. 4. In short. As a general rule. . This conclusion draws its force from the right of an employer to select his employees and to decide when to engage them as protected under our Constitution. Consolidation occurs when two or more corporations join into a new single corporation. the members of the labor union are precluded from entering into individual contracts of employment.The merger or consolidation shall have the following effects: xxx 5. 4. there is no law requiring a bona fide purchaser of assets of an on-going concern to absorb in its employ the employees of the latter. at least equivalent to those provided in the CBA. The surviving or consolidated corporation shall be responsible and liable for all the liabilities and obligations of each of the constituent corporations in the same manner as if such surviving or consolidated corporation had itself incurred such liabilities or obligations. he was told that those who are not covered by the CBA would nevertheless be entitled to benefits which would be. and against the union in matters that affect the entire membership or large classes of its members. action or proceeding brought by or against any of such constituent corporations may be prosecuted by or against the surviving or consolidated corporation. Exception Managers.” It is a stipulation in a CBA indicating that issues that could have been negotiated but not contained in the CBA cannot be raised for negotiation when the CBA is already in effect. the CBA is a complete agreement.3 “Zipper Clause” A device to forestall negotiation proposals after the CBA has been signed is the “zipper clause. ENFORCEABILITY ENTERPRISE AGAINST TRANSFEREE OF 5. negotiation is closed. labor contracts such as employment contracts and collective bargaining agreements are not enforceable against a transferee of an enterprise. Only thus could its validity insofar as some of its provisions are concerned be assured. . Otherwise. The rights of creditors or liens upon the property of any of such constituent corporations shall not be impaired by such merger or consolidation. It cannot serve as basis of a charge of violating the CBA or of bargaining in bad faith. (n) 4. except that of the consolidated corporation. In the case at bar. there is nothing to prevent the employer from granting benefits to managerial employees equal to or higher than those afforded to union members. at the beginning of petitioner's employment. 2. It is even conceded that a laborer can claim benefits from a collective bargaining agreement entered into between the company and the union of which he is a member at the time of the conclusion of the agreement. and an employer." The rule is that unless expressly assumed. and the same can only be restricted by law through the exercise of the police power. the parties are liable to the employees if the transaction between the parties is colored or clothed with bad faith.3 Effect of Collective Agreement on the Individual Contracts of Employment When a collective agreement is concluded between a labor union and an employer.2 Exceptions Although the purchaser of the assets or enterprise is not legally bound to absorb in its employ the employers of the seller of such assets or enterprise. labor contracts being in personam. Accordingly. thus binding only between the parties. even though the merger is for genuine business reasons. if not higher. gives rise to valid enforceable contractual relations. in the absence of an agreement to the contrary. and any pending claim. That private respondents made such a promise to petitioner is not denied by them. For the benefits of a collective bargaining agreement are extended to all employees regardless of their membership in the union because to withhold the same from the nonmembers would be to discriminate against them.1 Purchase of Assets The principle is thus well-settled that an existing law enters into and forms part of a valid contract without the need for the parties expressly making reference to it. the separate existence of all the constituent corporations ceases.

the procedures in administration of wages. where relevant similarity and continuity of operations across the change in ownership is evidenced by the wholesale transfer of the smaller corporation’s employees to the larger corporation’s plant. benefits. cannot renege on their collective bargaining contract. of the State policy to encourage voluntary arbitration of all other labor-management disputes. The expansion of the original and exclusive jurisdiction of voluntary arbitrators to include questions arising from the interpretation and enforcement of company personnel policies has the effect of widening the meaning and interpretation of a grievance to include a situation where there is no collective bargaining agent and no CBA. is the rules and regulations governing disciplinary actions. promotions. It does not survive where there is lack of any substantial continuity of identity in the business enterprise before and after a change. or where the union abandons its right to arbitration by failing to make its claims known. But a duty to arbitrate arising from collective bargaining agreement does not survive in every case in which the ownership or corporate structure of an enterprise is changed. any exclusive interest claimed by the agent is defeasible at the will of the principal. 7. holding rights through the agency of the union representative.” If the term grievance is to be applied in the loose or generic sense. the "substitutionary" doctrine only provides that the employees cannot revoke the validly executed collective bargaining contract with their employer by the simple expedient of changing their bargaining agent. cannot be invoked to support the contention that a newly certified collective bargaining agent automatically assumes all the personal undertakings — like the no-strike stipulation here — in the collective bargaining agreement made by the deposed union. the contract continues to bind them up to its expiration date. (Emphasis supplied) Stated otherwise. The grievance machinery under the agreement is the very heart of industrial self0government. It is intended to promote friendly dialogue between labor and management as a means of maintaining industrial peace. If a contractual duty to arbitrate survives the employer’s merger into another corporate employer. not of the other unions which possess distinct personalities. Personnel policies are guiding principles stated in broad. GRIEVANCES .1 By-passing the Grievance Machinery: ULP All grievances arising from the implementation or interpretation of the collective bargaining agreement and/or interpretation and enforcement of company personnel policies are compulsorily subject to the grievance of machinery. however. long-range terms that express the philosophy or beliefs of an organization’s top authority regarding personnel matters. the employee must exhaust all the remedies available to him under such contract. the justification 9 for said doctrine was: xxx that the majority of the employees. SUBSTITUTIONARY DOCTRINE How does disaffiliation affect the CBA? The agreement is binding on the parties for the period therein specified. so as to be binding on the larger corporation. therefore. Upholding the requirement. thru their new bargaining agent. when there occurs a shift in employees' union allegiance after the execution of a bargaining contract with their employer. may bargain for the shortening of the contract period. In view. question as to the effect of the merger on the rights of the employees covered by the agreement—the former employees of the merged employer—are arbitrable if questions as to those rights would have been arbitrable before the merger. The "substitutionary" doctrine. BBWU was the agent of the employees. a duty to arbitrate arising from a collective bargaining agreement survives the employer’s ceasing to do business as a separate entity after its merger with a substantially large corporation. except of course to negotiate with management for the shortening thereof. however. it could not have validly bound also all the other rival unions existing in the bargaining units in question. because the grievance procedure is part of the continuous process of collective bargaining. the only consideration involved was the employees' interest in the existing bargaining agreement. They deal with matters affecting efficiency and well-being of employees and include. CHANGE OF BARGAINING AGENT. The employees cannot revoke the validly executed collective bargaining contract with their employer by the simple expedient of changing their bargaining representative. The new agent.Under the Wiley doctrine. When BBWU bound itself and its officers not to strike. any dispute or controversy respecting terms and conditions of employment which an employee or group of employees may present to the employer can be a grievance. LABOR RELATIONS A grievance is defined as “any question by either the employer or the union regarding the interpretation or application of the collective bargaining agreement or company personnel policies or any claim by either party that the other party is violating any provision of the CBA or company personnel policies. Before an aggrieved employee may resort to the courts to enforce his individual rights under a bargaining contract.. The agent's interest never entered the picture. 6. even without a union or CBA.. To consider UNION contractually bound to the no-strike stipulation would therefore violate the legal maxim that res inter alios nec prodest nec nocet.. And it is in the light of this that the phrase "said new agent would have to respect said contract" must be understood. however. among others. Refusal or failure to do so is an unfair labor practice. The usual source of grievances. It only means that the employees. transfer and other personnel movements which are usually not spelled out in the collective agreement. In formulating the "substitutionary" doctrine. it is submitted that a grievance may be brought directly to voluntary arbitration without 7. as an entity under the statute. the Court has ruled that the grievance procedure provided in the CBA should be adhered to by the parties. Thus. In fact. May a grievance be brought to voluntary arbitration without passing through the grievance procedure under the CBA? This appears to be proscribed by the Labor Code which directs the parties to a CBA to establish a grievance machinery for the adjustment and resolution of grievances arising from the interpretation or enforcement of company personnel policies. and the employees change their bargaining representative. And a court should not entertain any complaint by an aggrieved employee until proper use has been made of the contract grievance procedure agreed upon by employer and the bargaining representative. is the true party in interest to the contract. Thus.

(c) If no settlement is reached. who are bound to accept the decision. He has no general character to administer justice for a community which transcends the parties. Above all. to an impartial third person for a final and binding resolution. The parties to a CBA will decide on the number of arbitrators who may hear a dispute only when the need for it arises. 1 The essence of arbitration remains since a resolution of a dispute is arrived at by resort to a disinterested third party whose decision is final and binding on the parties. nothing is left to be done by both parties but to comply with the same. Under voluntary arbitration. the same may be referred immediately to the grievance committee. 7. voluntary arbitration as a mode of settling the dispute was not forced upon respondents. circular or assignment issued by the appropriate authority in the establishment. they are presumed to have freely chosen arbitration as the mode of settlement for that particular dispute. Even the law itself does not specify the number of arbitrators. Contrary to the finding of the Court of Appeals.3 Structure and Procedure In the absence of applicable provision in the collective bargaining agreement. panel of voluntary arbitrators. In effect. Upon receipt thereof. Section 2. on the other hand. copy thereof furnished the board or the voluntary arbitrator or panel of voluntary arbitrators named or designated in the collective bargaining agreement. while that in compulsory is labor arbiter. Procedure in handling grievances. In Philippine context. a grievance committee shall be created within ten (10) days from signing of the collective bargaining agreement.2 Waiver of Grievance Machinery Procedure and Submission to VA Article 262 of the Labor Code provides that upon agreement of the parties. pursuant to a voluntary arbitration clause in their collective agreement. and it is best accomplished in a hearing conducted by three arbitrators. Where the collective bargaining agreement does not so designate. the voluntary arbitrator can hear and decide all other labor disputes. Where the issue involves or arises from the interpretation or implementation of a provision in the collective bargaining agreement. but in compulsory arbitration. Both parties indeed agreed to submit the issue of validity of the dismissal of petitioner to the jurisdiction of the voluntary arbitrator by the Submission Agreement duly signed by their respective counsels. Voluntary arbitration has been defined as a contractual proceeding whereby the parties to any dispute or controversy. as may be necessary. arbitration awards are supposed to be complied with by both parties without delay. 7. or from any order. The committee shall be composed of at least two (2) representatives each from the members of the bargaining unit and the employer. the parties are afforded the latitude to decide for themselves the composition of the grievance machinery as they find appropriate to a particular situation.In the absence of a specific provision in the collective bargaining agreement or existing company practice prescribing for the procedures in handling grievance. The shop steward. The notice shall state the issue or issues to be arbitrated. the grievance shall be referred to the grievance committee which shall have ten (10) days to decide the case. the employee and his immediate supervisor shall exert efforts to settle the grievance at their level. either party may serve notice upon the other of its decision to submit the issue to voluntary arbitration. cost is not the only consideration. . memorandum. such a third party is normally appointed by the government.1 Voluntary Arbitration: A Private Judicial System A voluntary arbitrator “is not a public tribunal imposed upon the parties by a superior authority which the parties are obliged to accept.2 Voluntary Arbitration: A Master Procedure 8.” The primary function of voluntary labor arbitration is to provide (1) a process for the orderly disposition of disputes and (2) a foundation for stable labor-management relations.Where grievance remains unresolved. referral of a dispute by the parties is made.LABOR RELATIONS passing through the grievance machinery. If the party upon whom the notice is served fails or refuses to respond favorably within seven (7) days from receipt thereof. Pursuant thereto. 8. and such issue cannot be resolved at the level of the shop steward or the supervisor. Labor arbitration is the reference of a labor dispute to a third party for determination on the basis of evidence and arguments presented by such parties. Compulsory arbitration is a system whereby the parties to a dispute are compelled by the government to forego their right to strike and are compelled to accept the resolution of their dispute through arbitration by a third party. or when the parties inadvertently failed to include a grievance machinery provision in their CBA. He is rather part of a system of selfgovernment created by and confined to the parties. which shall have the same force and effect as if the parties have selected the arbitrator. The employee’s waiver of her option to submit her case to grievance machinery did not amount to relinquishing her right to avail herself of voluntary arbitration. they have mutually agreed to de bound by said arbitrator's decision. in order to obtain a speedy and inexpensive final disposition of the matter involved. they have chosen a mutually acceptable arbitrator who shall hear and decide their case. the voluntary arbitrator or panel of voluntary arbitrators designated in the collective bargaining agreement shall commence voluntary arbitration proceedings. . As the voluntary arbitrator had jurisdiction over the parties' controversy. the regional branch of the Board shall designate the voluntary arbitrator or panel of voluntary arbitrators. who shall thereafter commence arbitration proceedings in accordance with the proceeding paragraph. In instances where parties fail to select a voluntary arbitrator or panel of voluntary arbitrators. the shop steward shall immediately bring the complaint to the employee's immediate supervisor. Ideally. Submission to voluntary arbitration. 8. (b) If the grievance is valid. After all. In this matter. the shop steward shall verify the facts and determine whether or not the grievance is valid. such that once an award has been rendered by an arbitrator. discussion of the second issue is no longer necessary. The jurisdiction of a VA is stated in Articles 261 and 262 while that of an LA is in Article 217. the “judge” in voluntary arbitration is called arbitrator. especially when the latter has been proven to be ineffective in the past. the following shall apply: (a) An employee shall present this grievance or complaint orally or in writing to the shop steward. full deliberation on the issues is another. the board shall call the parties and appoint a voluntary arbitrator or . The representatives from among the members of the bargaining unit shall be designated by the union. select a judge of their own choice and by consent submit their controversy to him for determination. VOLUNTARY ARBITRATION Section 3. unless otherwise agreed upon by the parties. Their alternatives — whether to have one or three arbitrators — have their respective advantages and disadvantages.

bargaining deadlocks. settled. ARBITRABLE DISPUTES In the field of labor relations. 262. The preferred method of selection is by mutual agreement of the parties. DISTINGUISHED FROM A COURT OF LAW Court of Law Formal Follow precedents Rules of evidence observed Decisions may be appealed to the higher court Hear a great variety of Arbitration Informal Not obliged Not observed No comparable appeal recourse Hear only industrial . is a non-technical and relatively inexpensive procedure for obtaining a quick solution to industrial disputes by persons who have specialized knowledge of labor management relations. for a period of time. A holder of at least a Bachelor’s Degree in any field of behavioral or applied sciences or equivalent educational training short of a Bachelor’s Degree. involving such matters as the interpretation and application of the contract. if the parties so desire. JURISDICTION OF L. usually during the life of the CBA). AND V. Alternative methods include the selection or appointment by an administrative agency like the NCMB. Jurisdiction of Voluntary Arbitrators or panel of Voluntary Arbitrators. upon agreement of the parties. and a bargaining deadlock or impasse has arisen.The Voluntary Arbitrator or panel of Voluntary Arbitrators shall have original and exclusive jurisdiction to hear and decide all unresolved grievances arising from the interpretation or implementation of the Collective Bargaining Agreement and those arising from the interpretation or enforcement of company personnel policies referred to in the immediately preceding article. the disputants submit to an impartial outsider for settlement the collective bargaining issue which they had been unable to settle by themselves. of labor-management relation. 261.A. ________ Article. Money claims. noted for impartiality. 9. or resolved through voluntary arbitration. The choice is usually influenced by the trust in the person’s fairness and knowledge of the dynamics. A person of good moral character. Jurisdiction over other labor disputes. its Regional Offices and the Regional Directors of the Department of Labor and Employment shall not entertain disputes. and even questions about existence or absence of employer-employee relationship. Contract interpretation disputes are disputes arising under an existing collective bargaining agreement.e. At least five (5) years experience in the field of Labor-Management relations. cases before the labor arbiter or Secretary of Labor or the NLRC) A dispute pending in voluntary arbitration (or compulsory arbitration. Where there is an existing agreement to arbitrate such disputes. and (2) contractinterpretation disputes. probity. either a sole arbitrator or a panel of arbitrators or Arbitration Board.The Voluntary Arbitrator or panel of Voluntary Arbitrators. Accordingly. They must be read as a whole and each Article of the Code reconciled one The following are the minimum criteria for accreditation as voluntary arbitrator: 1. whether or not aided by conciliators. strike or lockout. Completion of a training course on voluntary arbitration conducted by the Board. shall also hear and decide all other labor disputes including unfair labor practices and bargaining deadlocks. gross violations of Collective Bargaining Agreement shall mean flagrant and/or malicious refusal to comply with the economic provisions of such agreement. 11. . Contract negotiation disputes are disputes as to the terms of a collective bargaining agreement. except those which are gross in character. . violations of a Collective Bargaining Agreement. in sum. 4. Parties in general may choose between the use of a temporary (when a dispute is already at hand. The Commission. ________ Article. For purposes of this article. may be resolved by the parties—with finality—by availing themselves of voluntary arbitration. arbitration applies to two kinds of disputes: (1) contract-negotiation disputes.LABOR RELATIONS In labor-management relations voluntary arbitration is a master procedure. grievances or matters under the exclusive and original jurisdiction of the Voluntary Arbitrator or panel of Voluntary Arbitrators and shall immediately dispose and refer the same to the Grievance Machinery or Voluntary Arbitration provided in the Collective Bargaining Agreement. HOW VOLUNTARY ARBITRATOR IS CHOSEN A voluntary arbitrator is chosen by the parties themselves (preferably accredited by the NCMB). A Filipino citizen residing in the Philippines. shall no longer be treated as unfair labor practice and shall be resolved as grievances under the Collective Bargaining Agreement. and has not been civilly. ________ 1. The aforecited provisions of law cannot be read in isolation or separately. 10. 3.” 2.. and 5. As a master procedure voluntary arbitration takes precedence over other dispute settlement devices (i. for that matter) cannot be the subject of a strike or lockout notice.A. Any and all kinds of labor disputes may be submitted to. 2. Arbitration of contract negotiation disputes is often known as arbitration of “interest. employment termination. WHO MAY ARBITRATOR BE ACCREDITED AS VOLUNTARY cases Services of a lawyer is essential due to complexity disputes Not essential Arbitration.” while arbitration of contract interpretation disputes is known as arbitration of “grievance” or “rights. specific) or permanent arbitrator (before a dispute arises. including law. They have also a choice as to the number of arbitrators. criminally and administratively adjudged guilty of any offense involving moral turpitude as evidenced by a duly sworn affidavit. or alleged violation of its provisions.

violations of a collective bargaining agreement. however. 262. The jurisdiction of Voluntary Arbitrator or Panel of Voluntary Arbitrators is provided for in Arts. the line manager or supervisor as to the scope of their activities. Hence. . Policies are valuable in fixing definite objectives for the organization. upon agreement of the parties.” “Rules.LABOR RELATIONS with the other. . is to be dismissed for lack of jurisdiction and referred to the concerned NCMB Regional Branch for appropriate action. that: 1. the following cases involving all workers. 261 and 262. . .” “Procedures” Policies are formulated by management even before a company opens for business in order to guide the men in the operational level. better known as rules and procedures. Jurisdiction of Labor Arbiters . 261. and 262 of the Labor Code. Voluntary Arbitrators or Panel of Voluntary Arbitrators. if filed with a labor arbiter.1 Jurisdiction over Termination Disputes The preference or bias of the law in favor of voluntary arbitration justifies the view that employment termination disputes. . As shown in the above contextual and wholistic analysis of Articles 217. . . It need not be mentioned that the parties to a CBA are the union and the company." It is further provided in said article that the parties to a CBA shall name or designate their respective representatives to the grievance machinery and if the grievance is not settled in that level. the National Labor Relations Commission correctly ruled that the Labor Arbiter had no jurisdiction to hear and decide petitioner's money-claim-underpayment of retirement benefits. the termination of petitioner is not an unresolved grievance. 217. Jurisdiction of Labor Arbiters . . . They promote uniformity of action and prevent conflicting decisions especially as regards labor matter. The jurisdiction of the Labor Arbiter and Voluntary Arbitrator or Panel of Voluntary Arbitrators over the cases enumerated in Articles 217. . The labor disputes referred to in the same Article 262 can include all those disputes mentioned in Article 217 over which the Labor Arbiter has original and exclusive jurisdiction. except those which are gross in character. B. and 262 indicates. . Minor policies. as the controversy between the parties involved an issue "arising from the interpretation or implementation" of a provision of the collective bargaining agreement. can possibly include money claims in one form or another. Article 261 of the Labor Code which grants to voluntary arbitrators original and exclusive jurisdiction to hear and decide all unresolved grievances arising from the interpretation or implementation of the collective bargaining agreement and those arising from the interpretation or enforcement of company personnel policies. Procedures are made to specify ways or methods of carrying out policies and rules. B. authority and responsibility. A. . . 2. are cognizable by a voluntary arbitrator and not a labor arbiter. only disputes involving the union and the company shall be referred to the grievance machinery or voluntary arbitrators.1a “Policies. The Voluntary Arbitrator or Panel of Voluntary Arbitrators has original and exclusive jurisdiction over the controversy under Article 261 of the Labor Code. it shall automatically be referred to the voluntary arbitrators designated in advance by the parties to a CBA of the union and the company. Art. Such termination cases." In the case at bar. Art. Article 260 further provides that the parties to a CBA shall name or designate their respective representative to the grievance machinery and if the grievance is unsettled in that level. Article 260 of the Labor Code on grievance machinery and voluntary arbitrator states that "(t)he parties to a Collective Bargaining Agreement shall include therein provisions that will ensure the mutual observance of its terms and conditions. how to do it. to wit: Art. and not the Labor Arbiter. xxx (c) Cases arising from the interpretation or implementation of collective bargaining agreement and those arising from the interpretation or enforcement of company procedure/policies shall be disposed of by the Labor Arbiter by referring the same to the grievance machinery and voluntary arbitrator as may be provided in said agreement.” Company policies must be issued by top management which is responsible for making major policies that are by nature companywide in application. it shall automatically be referred to voluntary arbitrators (or panel of voluntary arbitrators) designated in advance by the parties. An analysis of the provisions of Articles 217. 261 and 262 of the Labor Code as indicated above. It must be emphasized that the jurisdiction of the Voluntary Arbitrator or Panel of Voluntary Arbitrators under Article 262 must be voluntarily conferred upon by both labor and management. shall no longer be treated as unfair labor practice and shall be resolved as grievances under the Collective Bargaining Agreement. Jurisdiction over other labor disputes. . The phrase "Except as otherwise provided under this Code" refers to the following exceptions: A. 4. 2. They shall establish a machinery for the adjustment and resolution of grievances arising from the interpretation or implementation of their Collective Bargaining Agreement and those arising from the interpretation or enforcement of company personnel policies. Rules are specific guides intended to govern conduct and action of operating supervisors and employees in the performance of their designated activities. can exercise jurisdiction over any and all disputes between an employer and a union and/or individual worker as provided for in Article 262. . arising from CBA or personnel policy implementation. . Policy statements are also needed to allow subordinate executives to make fair and consistent decisions on recurrent problems. and when to do it. and that of the Voluntary Arbitrator or Panel of Voluntary Arbitrators in Article 261. shall also hear and decide all other labor disputes including unfair labor practices and bargaining deadlocks. Note the phrase "unresolved grievances. Accordingly. are the extension of major policies and are usually formulated by minor executives or department managers. — The Voluntary Arbitrator or panel of Voluntary Arbitrators. 2. 217. and to enable them to arrive at sound decisions. 3. The original and exclusive jurisdiction of Labor Arbiters is qualified by an exception as indicated in the introductory sentence of Article 217 (a). A procedure tells what work or task to do. (a) Except as otherwise provided under this Code the Labor Arbiter shall have original and exclusive jurisdiction to hear and decide . . It can thus be deduced that only disputes involving the union and the company shall be referred to the grievance machinery or voluntary arbitrators. . A close reading of Article 261 indicates that the original and exclusive jurisdiction of Voluntary Arbitrator or Panel of Voluntary Arbitrators is limited only to: . The cases where the Labor Arbiters have original and exclusive jurisdiction are enumerated in Article 217. unresolved grievances arising from the interpretation or implementation of the Collective Bargaining Agreement and those arising from the interpretation or enforcement of company personnel policies . 261.

procedures in the hearing and it sometimes contains considerable details of the arbitrator’s authority and other matters which the parties wish to control. However. his power may be more sharply defined in the submission agreement.1 The Submission Agreement. Extent of Arbitrator’s Authority Although the contract may establish the breadth of the arbitrator’s power and the limits of his authority. they are likewise free to agree where that help may come from. While the submission agreement mentioned only the determination of the date or regularization. the parties may opt to submit their dispute to voluntary arbitration. Unsubstantiated conclusions of bad faith and unjustified refusal to re-employ petitioners.LABOR RELATIONS 2. it is even doubtful if the CBA provision on re-employment fits into the accepted notion of an economic provision of the CBA.” It is used where there is no previous agreement to arbitrate. the ultimate question of whether respondent employees are entitled to higher benefits. as well as unresolved grievances arising from the interpretation and implementation of the productivity incentive programs under RA 6971. The National Labor Relations Commission. once and for all. It bears stressing that the underlying reason why this case arose is to settle. since arbitration is the final resort for the adjudication of disputes. Upon agreement of the parties. Before or at any stage of the compulsory arbitration process. to hear and decide wage distortion issues arising from the application of any wage orders in organized establishments. the arbitrator can assume that he has the necessary power to make a final settlement since arbitration is the final resort for adjudication of disputes. are “gross” in character. the arbitrator is expected to decide those questions expressly stated and limited in the submission agreement. 217 (a-1). to our mind. Jurisdiction of voluntary arbitrator or panel of voluntary arbitrators. Generally. law and jurisprudence give the voluntary arbitrator enough leeway of authority as well as adequate prerogative to accomplish the reason for which the law on voluntary arbitration was created – speedy labor justice. namely: (1) gross violation of the CBA. the arbitrator is expected to decide only those questions expressly delineated by the submission agreement. 4. It is thus essential to stress that the Voluntary Arbitrator had plenary jurisdiction and authority to interpret the agreement to arbitrate and to determine the scope of hs own authority subject only. it often names the arbitrator. Demand or Notice of Intent to Arbitrate is more applicable to rights dispute because collective agreements are required under RA 6715 to provide for a grievance procedure and a voluntary arbitration clause with respect to disputes arising from the application or interpretation of the agreement. They shall also have exclusive and original jurisdiction. 3. For a ULP case to be cognizable by the Labor Arbiter. arbitration may be initiated unilaterally by one party by serving upon the other a written demand or notice of intent to arbitrate. AND (2) the violation pertains to the economic provisions of the CBA. The issue of regularization should be viewed as two-tiered issue. the parties jointly formulate in writing the specific issues to be decided by the arbitrator.2 Jurisdiction over CBA Violations CBA violations not constituting ULP are likewise cognizable by a voluntary arbitrator if not resolved through the grievance machinery. still. 2. The Submission. Submission is more appropriate in interest disputes since collective agreement generally do not provide for the arbitration of such disputes that may arise in the future. Sometimes the arbitrator is asked by the parties to help them frame the issue on the basis of the written grievance or the case as presented. following Art. sufficient details supporting the conclusion of bad faith and unjust refusal to re-employ petitioners must be indicated. If the violations. HOW VOLUNTARY ARBITRATION IS INITIATED Voluntary arbitration may be initiated either by 1) a Submission or 2) by a Demand or Notice invoking a collective agreement arbitration clause. the allegations in the complaint should show prima facie the concurrence of two things. . To require them to file another action for payment of such benefits would certainly undermine labor proceedings and contravene the constitutional mandate providing full protection to labor. And if they need help. Submission is sometimes called a “Stipulation” or an “Agreement to Arbitrate. Although evidentiary matters are not required (and even discouraged) to be alleged in complaint. The law wants the industrial players to resolve their differences by and among themselves as much as possible. the arbitrator will assume that he has the power to make a final settlement.3 Other Cases Section 4. Thus. Frequently. its regional branches and Regional Directors of the Department of Labor and Employment shall not entertain disputes. 3. which must be signed by both parties. In general. describes an existing dispute. any other labor dispute may be submitted to a voluntary arbitrator or panel of voluntary arbitrators. are to be heard and decided by a labor arbiter. It is a personnel policy dispute within the jurisdiction of a VA. Nevertheless. and the NLRC to exercise its appellate jurisdiction.4 Dispute over Company’s Drug Abuse Policy A union’s petition to enjoin implementation of the company’s drug policy is a labor dispute beyond RTC’s jurisdiction. to the certiorari jurisdiction of this Court. there is an “agreement to arbitrate” future dispute that may arise under and during the term of the CBA. If a dispute is covered by such an arbitration clause. these are to be treated as unfair labor practice which.The voluntary arbitrator or panel of voluntary arbitrators shall have exclusive and original jurisdiction to hear and decide all grievances arising from the implementation or interpretation of the collective bargaining agreements and those arising from the interpretation or enforcement of company personnel policies which remain unresolved after exhaustion of the grievance procedure. in a proper case. Sometimes both instruments are used in a case. 2. however. Submission is often entered into after the dispute has materialized and the issues can already be defined. grievances or matters under the exclusive and original jurisdiction of the voluntary arbitrator or panel of voluntary arbitrators and shall immediately dispose and refer the same to the appropriate grievance machinery or voluntary arbitration provided in the collective bargaining agreement. Furthermore. POWERS OF THE ARBITRATOR The study of collective bargaining agreements discloses different types of arbitration clauses with varying degrees of power granted to . However. do not constitute gross violation of the CBA for purposes of lodging jurisdiction with the Labor Arbiter and the NLRC.

It is contrary to public policy. ________ Article. On the other hand. order or award.the arbitration. attendance of witnesses and proof documents and other evidences. Hearing may be adjourned for cause or upon agreement by the parties.2 No Power to Add To or Subtract From the Contract Some arbitration clauses limit the arbitrator’s power to an interpretation and application of the contract and further specifically provide that he “shall have no power to add to or subtract from the contract. Moreover. It is without factual support in view of its language. fact-finding and other modes of discovery. it shall be mandatory for the Voluntary Arbitrator or panel of Voluntary Arbitrators to render an award or decision within twenty (20) calendar days from the date of submission of the dispute to voluntary arbitration. It shall be final and executory after ten (10) calendar days from receipt of the copy of the award or decision by the parties. . for some relationship to be shown between the matter in dispute and the provisions of the contract. This type of clause grants the arbitrator jurisdiction to hear and determine practically any matter in dispute between the parties. It is common. The attendance of any third party or the exclusion of any witness from the proceedings shall be determined by the Voluntary Arbitrator or panel of Voluntary Arbitrators. . then arbitration is needed before court suits for breach of the contract may be filed. receive evidences and take whatever action is necessary to resolve the issue or issues subject of the dispute. 4. his power is conferred by the CBA. there is an unauthorized amendment or alteration thereof. All parties to the dispute shall be entitled to attend the arbitration proceedings. The arbitrator is confined to interpretation and application of the CBA. Upon motion of any interested party. and 7. etc. he does not sit to dispense his own brand of industrial justice. 6. if: 1. It is mistakenly based on a crucial assumption which concededly is a nonfact. It is so unfounded in reason and fact. and any other indicia of the parties' intention. It is unlawful. Procedures. It is so unconnected with the working and purpose of the agreement. may issue a writ of execution requiring either the sheriff of the Commission or regular courts or any public official whom the parties may designate in the submission agreement to execute the final decision.. 4. It is said that an arbitral award does not draw its essence from the CBA. 5. he has wide latitude in exercising his authority. the authority of an arbitrator embraces or covers the following: 1. Unless the parties agree otherwise. its context. especially in fashioning an appropriate remedy. 5. As a general rule. 3. arbitrary or capricious. 3. Such clauses clearly state the parties’ intention that the arbitrator will be empowered only to interpret the contract but not add to or modify it. and his duty with respect to that agreement is to settle disputes arising thereunder by applying and interpreting that agreement. hence. the Voluntary Arbitrator or panel of Voluntary Arbitrators or the Labor Arbiter in the region where the movant resides. however. The arbitrator’s authority is contractual rather than judicial in nature. for any reason.The Voluntary Arbitrator or panel of Voluntary Arbitrators shall have the power to hold hearings. 2. in case of the absence or incapacity of the Voluntary Arbitrator or panel of Voluntary Arbitrators. Incidental authority to perform all acts necessary to an adequate discharge of his duties and responsibilities like setting and conduct of hearing.1 Arbitrator’s Interpretation of CBA The contract clause that gives the arbitrator the broadest scope of power is commonly known as the “disputes” clause. It ignores or abandons the plain language of the contract. 4. ________ 1. 262-A. Special power in aid of his general contractual authority like the authority to determine arbitrability of any particular dispute and to modify any provision of existing agreement upon which a proposed change is submitted for arbitration. he is not necessarily limited to matters specifically stated in the contract. He sits to settle disputes at the plant level—disputes which require for their solution knowledge of the custom and practices of a particular factory or of a particular industry as reflected in particular agreements. 2. reopening of hearing. This power may be very limited or unusually broad in scope. including efforts to effect a voluntary settlement between parties. General authority to investigate and hear the case upon notice of the parties and to render an award based on the contract and record of the case. FUNCTIONS OF ARBITRATOR The labor arbitrator under a collective bargaining agreement is an indispensable agency in the continuous collective bargaining process. The award or decision of the Voluntary Arbitrator or panel of Voluntary Arbitrators shall contain the facts and the law on which it is based.1 Power to Arbitrate Any Dispute LABOR RELATIONS But so long as an arbitrator is not arbitrary. 5. COMPLIANCE WITH DUTY TO ARBITRATE If a CBA requires settlement of disputes “exclusively” by the arbitration. the power and authority of arbitrators in labor dispute cases is derived from and limited by the terms of the parties’ agreement.

2 Review of Award by Certiorari The voluntary arbitrator no less performs a state function pursuant to a governmental power delegated to him under the provisions therefor in the Labor Code and he falls. Failure on the part of the voluntary arbitrator to render a decision. order or award within the prescribed period. 1-95. just like those of the quasi-judicial agencies. It is not Rule 65 because a petition for certiorari under that Rule lies only where there is “no appeal” and no plain. however. He also has a responsibility to society. grave abuse of discretion. The fact that his functions and powers are provided for in the Labor Code does not place him within the exceptions to said Sec. 4. 4. not 65 The mode of appeal from VA to the CA is therefore Rule 43 of the 1997 Rules of Procedure. His conduct should be above reproach. and his ethics must be on the same high level as the code that governs the conduct of judicial tribunals.1 Motion for Reconsideration* Section 7.appealable to the NLRC. the Court of Appeals must be deemed to have concurrent jurisdiction with the Supreme Court. As a matter of policy. therefore. 129. In cases that the recommended sanction is de-listing. Inspite of statutory provisions making 'final' the decisions of certain administrative agencies. 4. Since in effect. The fixing of fee of Voluntary Arbitrators.LABOR RELATIONS Nonetheless. There is no reason why herdecisions involving interpretation of law should be beyond this Court's review. resolution or award of the voluntary arbitrator or panel of voluntary arbitrators shall be final and executory after ten (10) calendar days from receipt of the copy of the award or decision by the parties and it shall not be subject of a motion for reconsideration. certiorari not being a substitute for lost appeal. shall take into account the following factors: (a) Nature of the case. and the procedural rules of appropriate agencies like the NCMB Procedural Guidelines in Conduct of Voluntary Arbitration Proceedings. within the contemplation of the term "instrumentality" in the aforequoted Sec. 9 since he is a quasi-judicial instrumentality as contemplated therein. EXCEPTIONS AWARD GENERALLY The decisions of voluntary arbitrators must be given the highest respect and as a general rule must be accorded a certain measure of finality. in line with the procedure outlined in Revised Administrative Circular No. he is a judge.P.The decision. In effect.3 Findings of Facts of a Voluntary Arbitrator ________ Article. WHO DETERMINES THE ARBITRATION PROCEDURES In practice. 4. The result is that a voluntary arbitral award may be modified and set aside only upon the same grounds on which a decision of the NLRC itself may be modified or set aside. 9 of B. this Court shall henceforth remand to the Court of Appeals petitions of this nature for proper disposition. the directives of the arbitrator. the parties to a CBA may waive the arbitration covenants of the agreement. 3. . violation of due process. and other agreements of the parties. voluntary arbitration of labor cases use procedures based on the Labor Code as amended by RA 6715 and its Implementing Rules. A fortiori. . 262-B. This is especially true where the arbitrator chosen by the parties enjoys the first rate credentials. it shall be unlawful for the voluntary arbitrator to refuse or fail to turn over to the board. or erroneous interpretation of the law were brought to our attention. order. this equates the award or decision of the voluntary arbitrator with that of the regional trial court. (b) Time consumed in hearing the case.The parties to a Collective Bargaining Agreement shall provide therein a proportionate sharing scheme on the cost of voluntary arbitration including the Voluntary Arbitrator’s fee. we have taken cognizance of petitions questioning these decisions where want of jurisdiction. by the Supreme Court. the decision or award of the voluntary arbitrator or panel of arbitrators should likewise be appealable to the Court of Appeals. and (e) Fees provided for in the Revised Rules of Court. A voluntary arbitrator by the nature of her fucntions acts in quasi-judicial capacity. The remedies of appeal and certiorari are mutually exclusive and not alternative or successive. ETHICAL STANDARDS OF ARBITRATORS An arbitrator is obliged to maintain a high level of professional ethics in his relationship with the parties and the appointing agencies. be sufficient ground for the Board to discipline said voluntary arbitrator. shall upon complaint of a party. speedy and adequate remedy in the ordinary course of law. for its further disposition. Consequently. denial of substantial justice. . (d) Capacity to pay of the parties. 4. Certiorari under Rule 65 cannot be allowed when a party to a case fails to appeal a judgment despite the availability of that remedy. pursuant to the guidelines issued by the Secretary. Finality of Award/Decision. resolution. but their conduct must clearly show that intention. 2. Cost of voluntary arbitration and Voluntary Arbitrator’s fee. that this respect precludes the exercise of judicial review over their decisions. It is not correct. ________ The Labor Code and its Implementing Rules thus clearly reflect the important public policy of encouraging recourse to voluntary arbitration and of shortening the arbitration process by rendering the arbitral award non. VOLUNTARY ARBITRATION FINAL. the records of the case within ten (10) calendar days from demand thereof. whether shouldered wholly by the parties or subsidized by the Special Voluntary Arbitration Fund. (c) Professional standing of the Voluntary Arbitrator. the CBA. Administrative officials are presumed to act in accordance with law and yet we do hesitate to pass upon their work where a question of law is involved or where a showing of abuse of authority or discretion in their official acts is properly raised in petitions for certiorari. in a petition for certiorari from that award or decision.2a From VA to CA: Mode of Appeal is Rule 43. boards and commissions enumerated therein.

Master your semester with Scribd & The New York Times

Special offer for students: Only $4.99/month.

Master your semester with Scribd & The New York Times

Cancel anytime.