LABOR RELATIONS

I.

Nature, purpose and scope of the subject matter

CONSTITUTIONAL BASIS
Article 2, Section 18. The State affirms labor as a primary social economic force. It shall
protect the rights of workers and promote their welfare.
Article 3, Section 8. The right of the people, including those employed in the public and
private sectors, to form unions, associations, or societies for purposes not contrary to law shall not
be abridged.
Article 13, Section 3. The State shall afford full protection to labor, local and overseas,
organized and unorganized, and promote full employment and equality of employment
opportunities for all. It shall guarantee the rights of all workers to self-organization, collective
bargaining and negotiations, and peaceful concerted activities, including the right to strike in
accordance with law. They shall be entitled to security of tenure, humane conditions of work, and a
living wage. They shall also participate in policy and decision-making processes affecting their
rights and benefits as may be provided by law. The State shall promote the principle of shared
responsibility between workers and employers and the preferential use of voluntary modes in
settling disputes, including conciliation, and shall enforce their mutual compliance therewith to
foster industrial peace. The State shall regulate the relations between workers and employers,
recognizing the right of labor to its just share in the fruits of production and the right of enterprises
to reasonable returns to investments, and to expansion and growth.
The State shall:
1. Afford full protection to labor
a. Local and overseas
b. Organized and unorganized
2. Promote full employment and equality of employment opportunities for all
3. It shall guarantee the rights of ALL workers to the following:
a. Labor Relations
i. Self-organization
ii. Collective bargaining and negotiations
iii. Peaceful concerted activities, including the right to strike in accordance with law
b. Labor Standards
i. Security of tenure
ii. Humane conditions of work
iii. Living wage
c. Others
i. Participation in policy and decision making processes affecting their rights and
benefits as may be provided by law
4. Promote the principle of shared responsibility between workers and employers
5. Promote the preferential use of voluntary modes in settling disputes, including conciliation, and
shall enforce their mutual compliance therewith to foster industrial peace.
6. Regulate the relations between workers and employers, recognizing the right of labor to its just
share in the fruits of production and the right of enterprises to reasonable returns of investments,
and to expansion and growth.

II.

Understanding Labor Relations, its meaning

Labor standards is anchored in labor legislation. It is a substantive right of the

employee. Labor relations is the procedure to follow to guard such right. It is procedural.
III.

Labor Relations: Labor Standards: Labor Legislations

Labor relations defines the status, rights and duties, and the institutional mechanisms that
govern the individual interactions of the employer, employee, or their representatives
Labor standards sets out the minimum terms, conditions and benefits of employment that
employers must provide or complied with and the employees are entitled as a matter of legal right.
Labor legislation the promotion of the welfare of the people, the adoption by the government of
measures calculated to insure economic stability of all the component elements of society thru the
maintenance of proper economic and social equilibrium in the interrelations of the members of the
community, constitutionally, thru the adoption of measures legally justifiable, or extraconstitutionally, thru the exercise of powers underlying the existence of all governments, on time
honored principle of salus populi esta suprema lex. (Calalang vs Williams)
How these three fields work and relate each other?
GR: The provisions of the Labor Code cannot be invoked if there is no employee-employer
relationship.
Except:
1. Indirect employers liability you can implead agency and establishment in direct and
indirect employer. They are solidary liable to the money claims of the aggrieved employee.
Indirect employers defense is to prove that it has fully paid the security agency.
2. Misuse of POEA license found under the Labor Code only and not on other laws.
3. Illegal recruitment
Test in determining EER
The four-fold test is composed of four elements. This test is the yardstick to determine employeremployee relationship:
(1) selection and engagement of the employee;
(2) payment of wages;
(3) power of dismissal; and
(4) power to control employer controls the manners, means and method by which the work is to
be achieved.
Dinglasan and Jardin Case - relationship between jeepney owners/operators on one hand and
jeepney drivers on the other under the boundary system is that of employer-employee and not of
lessor-lessee. The jeepney operators are controlling the manners, means and methods by which
work is to be accomplished.
Pakyaw basis considered as employees because they are using the facilities of the company
which dictates the manners, means and methods by which work is to be accomplished.
Brotherhood vs Zamora considering the length of time, it could justifiably be concluded that they
are employees of the company. Employer has the power to control the employees conduct with
respect to the means and methods by which the work is to be accomplished.
Three instances how an employee can be considered as a regular employee

1. If the employee is performing service/work that is usually necessary and desirable to the
business of the employer and there is no agreement to the contrary, he is considered a
regular employee on the first day of work.
2. Even if he is performing work that is desirable and necessary to the business of the
employer, there is a probationary period signed in the contract in not more than 6 months,
he is not considered a regular employee outright. However, if the probationary last for more
than 6 months, he is considered as a regular employee.
3. If the employee is rendering services/continuously suffering/working for a period of 1 year,
the employee is considered a regular employee.
IV.

National Labor Relations Commission

a. Composition of NLRC

The National Labor Relations Commission (NLRC) is a quasi-judicial agency attached to

the Department of Labor and Employment (DOLE) for program and policy coordination only. It was
created under Presidential Decree No. 442, otherwise known as the Labor Code of the
Philippines, as amended, which took effect on November 1, 1974. It took over the functions of the
Court of Industrial Relations and the Ad Hoc NLRC created under Presidential Decree No. 21. The
NLRC is the principal government agency that hears and decides labor-management disputes. It
is tasked to promote and maintain industrial peace by resolving labor and management disputes
involving both local and overseas workers through compulsory arbitration after mandatory
conciliation mediation conferences failed. This is in consonance with the mission of the NLRC to
resolve labor disputes in the fairest, quickest, least expensive and most effective way possible.
b. Tripartite Representation to the NLRC
The Commission Proper of the NLRC is tripartite in representation. Under R.A. No. 9347,
the Commission Proper has eight (8) Divisions, each is composed of three (3) members with the
Presiding Commissioner representing the government sector and the other two members
representing the workers and the employers sectors. Of the eight (8) Divisions, the First, Second,
Third, Fourth, Fifth and Sixth Divisions handle cases coming from the National Capital Region and
other parts of Luzon, and the Seventh and Eight Divisions, cases from the Visayas and Mindanao,
respectively.
The Chairman, aided by the Executive Clerk of the Commission, has exclusive
administrative supervision over the NLRC, its regional arbitration branches and all its personnel,
including the Labor Arbiters. The Commission Proper sits en banc only for purposes of
promulgating rules and regulations governing the hearing and disposition of cases, and
formulating policies affecting its administration and operations.
The Commission Proper sitting en banc may, on temporary or emergency basis, allow
cases within the jurisdiction of any Division to be transferred to and be heard and decided by any
other Division which docket may allow additional workload and such transfer will not expose
litigants to unnecessary additional expense. The Commission Proper through its Divisions have
exclusive appellate jurisdiction over all cases decided by Labor Arbiters at the
Regional/SubRegional Arbitration Branches.
The First, Second, Third, Fourth, Fifth, and Sixth Divisions have their respective offices in
the National Capital Region, while the Seventh and Eighth Divisions in the cities of Cebu and
Cagayan de Oro, respectively. The Chairman is the Presiding Commissioner of the First Division.
In case of the effective absence or incapacity of the Chairman, the Presiding Commissioner of the
Second Division shall be the Acting Chairman.
c. Appointment of Chairman and Commissioners of NLRC

ART. 215. Appointment and Qualifications. - The Chairman and other Commissioners shall
be members of the Philippine Bar and must have engaged in the practice of law in the Philippines
for at least fifteen (15) years, with at least five (5) years experience or exposure in the field of
labor-management relations, and shall preferably be residents of the region where they are to hold
office. The Executive Labor Arbiters and Labor Arbiters shall likewise be members of the Philippine
Bar and must have been engaged in the practice of law in the Philippines for at least seven (7)
years, with at least three (3) years experience or exposure in the field of labor-management
relations: Provided, However, that incumbent Executive Labor Arbiters and Labor Arbiters who
have been engaged in the practice of law for at least five (5) years may be considered as already
qualified for purposes of reappointment as such under this Act. The Chairman and the other
Commissioners, the Executive Labor Arbiters and Labor Arbiters shall hold office during good
behavior until they reach the age of sixty-five years, unless sooner removed for cause as provided
by law or become incapacitated to discharge the duties of their office.
The Chairman, the division Presiding Commissioners and other Commissioners shall be
appointed by the President, subject to confirmation by the Commission on Appointments.
Appointment to any vacancy shall come from the nominees of the sector which nominated the
predecessor. The Executive Labor Arbiters and Labor Arbiters shall also be appointed by the
President, upon recommendation of the Secretary of Labor and Employment and shall be subject
to the Civil Service Law, rules and regulations.
The Secretary of Labor and Employment shall, in consultation with the Chairman of the
Commission, appoint the staff and employees of the Commission and its regional branches as the
needs of the service may require, subject to the Civil Service Law, rules and regulations, and
upgrade their current salaries, benefits and other emoluments in accordance with law. (As
amended by Section 7, Republic Act No. 6715, March 21, 1989).
d. Scope of Powers of NLRC
1. Rule-Making Power
Rule VIII of the Revised Rules of the National Labor Relations Commission on appeal,
provides:
SECTION 1. (a) Appeal. Decision or orders of a labor Arbiter shall be final and executory
unless appealed to the Commission by any or both of the parties within ten (10) calendar
days from receipt of notice thereof.
Under the above-quoted provisions of the Revised NLRC Rules, the decision appealed
from in this case has become final and executory and can no longer be subject to appeal.
( Rizal Empire Insurance group vs NLRC)
2. Power to Issue Compulsory Processes
To administer oaths, summon the parties to a controversy, issue subpoenas requiring the
attendance and testimony of witnesses or the production of such books, papers, contracts,
records, statement of accounts, agreements, and others as may be material to a just
determination of the matter under investigation, and to testify in any investigation or hearing
conducted in pursuance of this Code. (Article 218b, Labor Code)
3. Power to Investigate and Hear Disputes
To conduct investigation for the determination of a question, matter or controversy within its
jurisdiction, proceed to hear and determine the disputes in the absence of any party thereto

who has been summoned or served with notice to appear, conduct its proceedings or any
part thereof in public or in private, adjourn its hearings to any time and place, refer technical
matters or accounts to an expert and to accept his report as evidence after hearing of the
parties upon due notice, direct parties to be joined in or excluded from the proceedings,
correct, amend, or waive any error, defect or irregularity whether in substance or in form,
give all such directions as it may deem necessary or expedient in the determination of the
dispute before it, and dismiss any matter or refrain from further hearing or from determining
the dispute or part thereof, where it is trivial or where further proceedings by the
Commission are not necessary or desirable. (Article 218b, Labor Code)
4. Contempt Power
"(d) To hold any person in contempt directly or indirectly and impose appropriate penalties
therefor in accordance with law.
A person guilty of misbehavior in the presence of or so near the Chairman or any member
of the Commission or any Labor Arbiter as to obstruct or interrupt the proceedings before
the same, including disrespect toward said officials, offensive personalities toward others,
or refusal to be sworn or to answer as a witness, or to subscribe an affidavit or deposition
when lawfully required to do so, may be summarily adjudged in direct contempt by said
officials and punished by fine not exceeding five hundred pesos (P500) or imprisonment not
exceeding five (5) days, or both if it be the Commission or a member thereof, or by a fine
not exceeding one hundred pesos (P100) or imprisonment not exceeding one (1) day, or
both if it be a Labor Arbiter.
The person adjudged in direct contempt by a Labor Arbiter may appeal to the Commission
and the execution of the judgment shall be suspended pending the resolution of the appeal
upon the filing of such person of a bond on a condition that he will abide by and perform the
judgment of the Commission should the appeal be decided against him. Judgment of the
Commission on direct contempt is immediately executory and unappealable. Indirect
contempt shall be dealth with by the Commission or Labor Arbiter in the manner prescribed
under Rule 71 of the Revised Rules of Court. (RA 6715; March 21, 1989)

5. Power to Conduct Ocular Inspection

Art. 219. Ocular inspection. The Chairman, any Commissioner, Labor Arbiter or their duly
authorized representatives, may, at any time during working hours, conduct an ocular
inspection on any establishment, building, ship or vessel, place or premises, including any
work, material, implement, machinery, appliance or any object therein, and ask any
employee, laborer, or any person, as the case may be, for any information or data
concerning any matter or question relative to the object of the investigation. (Art. 219, Labor
Code)
6. Appellate Adjudicatory Power
The Commission shall have exclusive appellate jurisdiction over all cases decided by Labor
Arbiters. (Article 217b, Labor Code)
7. Original Adjudicatory Power
To enjoin or restrain any actual or threatened commission of any or all prohibited or
unlawful acts or to require the performance of a particular act in any labor dispute which, if
not restrained or performed forthwith, may cause grave or irreparable damage to any party

or render ineffectual any decision in favor of such party: Provided, That no temporary or
permanent injunction in any case involving or growing out of a labor dispute as defined in
this Code shall be issued except after hearing the testimony of witnesses, with opportunity
for cross-examination, in support of the allegations of a complaint made under oath, and
testimony in opposition thereto, if offered, and only after a finding of fact by the
Commission, to the effect:
That prohibited or unlawful acts have been threatened and will be committed and will be
continued unless restrained, but no injunction or temporary restraining order shall be issued
on account of any threat, prohibited or unlawful act, except against the person or persons,
association or organization making the threat or committing the prohibited or unlawful act or
actually authorizing or ratifying the same after actual knowledge thereof;
That substantial and irreparable injury to complainants property will follow;
That as to each item of relief to be granted, greater injury will be inflicted upon complainant
by the denial of relief than will be inflicted upon defendants by the granting of relief;
That complainant has no adequate remedy at law; and
That the public officers charged with the duty to protect complainants property are unable
or unwilling to furnish adequate protection.
Such hearing shall be held after due and personal notice thereof has been served, in such
manner as the Commission shall direct, to all known persons against whom relief is sought,
and also to the Chief Executive and other public officials of the province or city within which
the unlawful acts have been threatened or committed, charged with the duty to protect
complainants property: Provided, however, that if a complainant shall also allege that,
unless a temporary restraining order shall be issued without notice, a substantial and
irreparable injury to complainants property will be unavoidable, such a temporary
restraining order may be issued upon testimony under oath, sufficient, if sustained, to justify
the Commission in issuing a temporary injunction upon hearing after notice. Such a
temporary restraining order shall be effective for no longer than twenty (20) days and shall
become void at the expiration of said twenty (20) days. No such temporary restraining order
or temporary injunction shall be issued except on condition that complainant shall first file
an undertaking with adequate security in an amount to be fixed by the Commission
sufficient to recompense those enjoined for any loss, expense or damage caused by the
improvident or erroneous issuance of such order or injunction, including all reasonable
costs, together with a reasonable attorneys fee, and expense of defense against the order
or against the granting of any injunctive relief sought in the same proceeding and
subsequently denied by the Commission.
The undertaking herein mentioned shall be understood to constitute an agreement entered
into by the complainant and the surety upon which an order may be rendered in the same
suit or proceeding against said complainant and surety, upon a hearing to assess damages,
of which hearing, complainant and surety shall have reasonable notice, the said
complainant and surety submitting themselves to the jurisdiction of the Commission for that
purpose. But nothing herein contained shall deprive any party having a claim or cause of
action under or upon such undertaking from electing to pursue his ordinary remedy by suit
at law or in equity: Provided, further, That the reception of evidence for the application of a
writ of injunction may be delegated by the Commission to any of its Labor Arbiters who shall
conduct such hearings in such places as he may determine to be accessible to the parties
and their witnesses and shall submit thereafter his recommendation to the Commission.
(Article 218e, Labor Code As amended by Section 10, Republic Act No. 6715, March 21,
1989)

From Notes: tripartite representation of the NLRC: 3 representatives from the employer, employee
and public sector. Which means that the 3 sectors are equally represented in the composition of
the NLRC.
8 from the labor/workers sector
8 from the employers/management sector
8 from public sector including the Chairman
RA 9377 on June 24, 2006 composition of the NLRC
Chairman and 23 members
NLRC shall be composed of 8 divisions each shall have 3 members
1st, 2nd, 3rd, 4th, 5th, and 6th divisions will have exclusive jurisdiction in NCR. Its office is in Banawe,
Metro Manila
7th division has exclusive appellate jurisdiction in Visayas (Cebu City)
8th division has exclusive appellate jurisdiction in Mindanao (Cagayan de Oro)
The chairman of the commission shall be the presiding commissioner of the 1 st division. The 7
members of the public sector will be the presiding commissioners of the 2 nd, 3rd, 4th. 5th,6th, 7th, 8th
respectively.
The chairman presides. In case he is absent, the presiding commissioner of the 2 nd division will act
as a chairman.
7 powers of the NLRC
1. Rule making power
2. Power to issue compulsory processes
3. To investigate and hear dispute
4. Conduct ocular inspection
5. Appellate adjudicatory power
6. Original adjudicatory power
Rizal empire insurance group vs NLRC rules of NLRC are revised almost every 3 years.
it is still valid and has the force and effect of law.
Compulsory process document to compel the attendance of any person (subpoena)
Doces ticum document under your possession
Ad testificatum present your self
Doces ticum ad testificatum present the document and testify on it.
Power of contempt act of disobedience against the court. By setting up against the
authority
2 forms
Direct by unlawful acts against the NLRC officers. Chairman, any commissioner or labor
arbiter may summarily hold for any act of misbehavior that may interrupt the proceedings or
offensive acts towards others; or refusal to be sworn or to answer as witness, to subscribe
under sworn to any affidavit or deposition when required.
Indirect failure of the person to perform the requirements or what has been ordered by the
commission
Penalty direct contempt fine not more than 500 or imprisonment of not more than 5
days.
- Indirect contempt not more than 100 or imprisonment of not more than 1 day.

Decision of the NLRC on direct contempt is final and unappealable

Indirect contempt
1. Misbehavior of any officer/employee in the official function or during official
transaction
2. Resistance to a lawful order or decision
3. Abuse or unlawful action intended to disrupt the proceedings if not constituting
direct contempt
4. Failure to obey subpoena issued or compulsory processes
5. Usurpation of authority of the attorney or representative of the party
6. Other analogous instances
No imprisonment but has fine
If committed to the Chairman indirect contempt 1,000 fine for every
instances. If committed to the labor arbiter 500 everyday for every
count/instances of indirect contempt
In case of insolvency or refusal to pay, there is subsidiary imprisonment to
execute the decision.
Power to investigate
Appellate adjudicatory power
Original adjudicatory power
1. In cases involving industries that are dispensable to national interest (if
certified by the secretary of labor)
2. All cases for petition for injunction and issuance of temporary restraining
order.
V.

THE LABOR ORGANIZATION

Labor organization means any union or association of employees which exists in whole or
in part for the purpose of collective bargaining or of dealing with employers covering terms and
conditions of employment.
2 broad purposes:
1. collective bargaining
2. dealing with employers
Common- concerned with terms and conditions of employment
Collective bargaining to bargain collectively. A right acquired after being registered with
DOLE. It becomes a Legitimate Labor Organization (LLO)
LLO exclusive to a labor union registered with DOLE
Dealings with the employer generic description of interaction between the employee and
employer.
Group/union of employees has a right that can be exercised even without the union
registration.
Rights of union members:
1. political right right to vote and be voted for
2. deliberative and decision making right right of members to participate in the
deliberation and to vote by secret ballot
3. right to money matters

a. right to unauthorized collection

b. collection of excessive fees
c. disbursement of funds
d. require adequate records
e. access to financial records
f. right to vote for officer of company
g. propose special assessment
h. right to be deducted on
4. right to information right to know the rules/regulation constitution and by laws. Right to
be informed of the provisions of the CBA. Basic policies and provision of union.
Mere employee without being necessary a union member has the right to present directly
his grievances to the employer.
May an employee be compelled to join LO?
GR: no. art 277 LC. Employees cannot be compelled to join LO
Except: in case of closed shop agreement
Effect: all employees in CBA must join the ruling union otherwise, it is a valid ground for
termination
Except: in case of religious grounds/objections
Kapatiran vs Calleja/ victorino vs elizalde
Even if there is a closed shop agreement, they cannot be compelled to join a union
due to religious conviction. However if they want to form a union, they can.
May an LO be compelled to admit an employee?
GR: NO. it depends upon the unions constitution and by laws/acquisition and retention of
employees
Disqualified from appointment as officers of the union:
1. those employees who belongs to a subversive organization. Engage directly in
subversive activity.
Subversive organization organization to over throw the government
Disqualified to be officers and members
2. convicted of a crime involving moral turpitude one characterized by a conduct that
is considered contrary to community standards of justice, honesty, or good morals.
- contrary to modesty, justice, honesty and good morals
- inspired or motivated of committing the crime.
- mala ense parricide, homicide, murder
* even if you are convicted of crimes involving moral turpitude, that will only disqualify
you to become an officer but not necessarily a member.
Who are entitled to unionized?
Art. 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)
Ambulant not stationed in one office
Intermittent not continuous/seasonal
Itinerant broader than ambulant
Who cannot unionized?

All employees of civil service

Except: employees of GOCCs with original charter covered by the civil service
code may only form association for their own mutual aid and protection but they
cannot form union, strike, CBA or unlawful act. However, GOCCs without original
charter formed under the corporation code and covered by the Labor Code of the
Philippines may engage lawful concerted activities such as strike and may form
union for the purpose of CBA.
Managerial employees are not eligible to join, assist or form any labor
organization.
Supervisory employees shall not be eligible for membership in a labor
organization of the rank-and-file employees but may join, assist or form separate
labor organizations of their own.
Cooperative owners cannot but employees can.
Religious objectors
Members of AFP, PNP, jail guards cannot join but can form, assist, join separate
labor organization of their own for mutual aid and protection.

Original charter covered by civil service:

- Sss
- Local water districts
- MWSS
- PNB
- PCSO
- PDIC
- GSIS
- PNR
- PAGCOR
- NIA
Without original charter formed under the corporation code:
- NASECO
- PTV14
- IBC13
- RPN9
Managerial power to hire, fire, suspend etc. depends on the power vested in him.
Supervisor makes him effectively recommend policies to the management. But cannot execute
outright. There is a need for approval of the management.
Confidential employees cannot join union/ disqualified
Confidential employees are those who:
(1) assist or act in a confidential capacity [integral part of the job]
(2) to persons who formulate, determine, and effectuate management policies in the field of labor
relations. (Nature of Access Test)
The two criteria are cumulative, and both must be met if an employee is to be considered a
confidential employee that is, the confidential relationship must exist between the employees
and his supervisor, and the supervisor must handle the prescribed responsibilities relating to labor
relations. [San Miguel Supervisors and Exempt Union v. Laguesma, 1997]
Rationale of Exclusion ofConfidential Employees
Employees should not be placed in a position involving a potential conflict of interests.
By the very nature of their functions, they assist and act in a confidential capacity to, or have
access to confidential matters of, persons who exercise managerial functions in the field of labor

relations. (Thus there is a fiduciary and confidential relationship between manager and employer.)
It is not far-fetched that in the course of CB, they might jeopardize that interest which they are duty
bound to protect. [Metrolab Industries Inc. v. Roldan-Confessor, 1996]
Globe Doctrine: Concept
(a) practice designated as the "Globe doctrine," which sanctions the holding of a series of
elections, not for the purpose of allowing the group receiving an over all majority of votes to
represent all employees, but for the specific purpose of permitting the employees in each of the
several categories to select the group which each chooses as a bargaining unit. [Kapisanan ng
mga Manggagawa sa Manila Road Co. v. Yard Crew Union , 1960]
Rationale for the Globe Doctrine
Highly skilled or specialized technical workers may choose to form their own bargaining unit
because they may be in better position to bargain with the employer considering the market value
of their skills.
Security guards may join labor union of rank and file and labor union of managerial.
In Dec 1986, President Aquino issued EO No. 111 which eliminated the provision on the
disqualification of security guards and with that security guards were thus free to join a rank and
file organization. Under the old rule, security guards were barred from joining labor organizations
of the rank-and-file but under RA 6715, they may now freely join a labor organization with the rankand-file or the supervisory union, depending on their rank. [Manila Electric Co. v.Sec. of Labor,
1991]
WHO CANNOT FORM, JOIN, OR ASSIST LABOR ORGANIZATIONS
(1) Managerial employees
(2) Confidential employees
(3) Non-employees
(4) Member-employee of a cooperative
(5) Employees of international organizations
(6) High-level government employees
(7) Members of the AFP, police officers, policemen, firemen and jail guards
Collective bargaining exercise only after becoming legitimate labor organization by registration
with DOLE
Definitions
Bargaining Unit refers to a group of employees sharing mutual interests within a given employer
unit, 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. [Book V, Rule 1,
Sec1(d)]
Appropriate Bargaining Unit
A group of employees of a given employer comprised of all or less than all of the entire body of
employees, which the collective interests of all the employees indicate to be best suited to serve
reciprocal rights and duties of the parties consistent with equity to the employer. [Belyca Corp. vs
Calleja, 1988]
Legitimate labor organization "Legitimate labor organization" means any labor organization duly
registered with the Department of Labor and Employment, and includes any branch or local
thereof. [Art 212 (f)]
Labor union should be formed with the goal to bargain collectively. Ready to represent the
bargaining unit.
How do you determine CBU?

4 litmus test to determine propriety of BU:

Test to determine the constituency of an appropriate bargaining unit
(WAPE)
(1) Will of the Employees (Globe Doctrine)
Globe stamping machine vs NLRB even if employees are from different units, they can still form
a bargaining unit if that is their will. The test is the will of the employees(desire).
(2) Affinity & unity (Community) of Employees interest, such as substantial similarity of works and
duties or similarity of compensation & working conditions employees from same dept., unit are
joined together without a community of interest.
(3) Prior CB history previous bargaining history
(4) Employment status (i.e. temporary, seasonal, & probationary. [UP v. Ferrer-Calleja, 1992 citing
Democratic Labor Assoc v. Cebu Stevedoring Co.] ) and geographical location.
Among the four test, the most common is the community of interest the most prevalent.
GR: no prohibition on private sector to form union. If curtailed it will be unfair labor practice. It is
enshrined in the constitution.
Exclusive bargaining representative before a labor organization becomes EBR, it should first be
a legitimate labor organization. It should be registered with DOLE.
By independent registration, it must comply with the legal requirements.
Requirements of independent registration:
1. P50 registration fee;
2. The names of its officers, their addresses, the principal address of the labor organization,
the minutes of the organizational meetings and the list of the workers who participated in
such meetings;
3. Names of members of labor union comprising at least 20% of all the employees in the
Bargaining Unit where it seeks to operate;
4. If the applicant is Labor union in existence for 1 year submit copies of its annual financial
report;
5. Four (4) copies of the constitution and by-laws of the applicant union, minutes of its
adoption or ratification, and the list of the members who participated in it.
Most crucial requirement is #3 a union applying for registration in order to become a legitimate
labor organization should comply with the 20% requirement in so far as independent registration is
concerned.
What are the methods in determining EBR?
1. Voluntary recognition employer has the discretion to recognize as EBR the only LO
existing in the collective bargaining unit. Provided such LO carries the majority of the votes.
If the employer is not convinced if the Lo can carry the majority representation of the
organization, employer may opt for certification of election in order to determine the true will
of the employees.
2. Certification Election most decisive among all methods of EBR
- Done through the process of secret ballot voting among the employees in the
Bargaining unit through the intervention of the mid arbiter sent by DOLE
- To emerge as an EBR it must garner the majority vote of all the employees in the
bargaining unit.
- Consent election comes first then cert election
- Run-off election option after a failed cert election.
- In the process of run-off election, the mid arbiter conducts election between the
two most highest voted union
- Until such time that majority vote is achieved, the process shall be repeated
again and again.

- If the result is not achieved, the remedy is through consent election

3. Consent Election self made method devised by contending unions themselves to
determine which among them truly caries the majority representation of the bargaining unit.
Certification election vs consent election
In certification election, the decision comes from the employees themselves through secret
balloting while in consent election, the decision comes from the union themselves which is made
without secrecy.
In certification election, it is inevitably conducted with the presence of mid arbiter while consent
election can be done with or without the mid arbiter from DOLE.
Voluntary recognition decision of the employer
Certification Election by the employees
Consent Election by the unions themselves
Federation or national union powers
1. to confer legitimate status to labor union that does not qualify unions may offer itself by way
of chartering to be attached on a federation or national union.
Charter certificate is issued to labor organization to be presented to DOLE within 30 days from
execution thereof in order to become legitimate labor organization. However, the moment the
federation revokes the certification, its LLO will cease.
LLO the process is affiliation in which a legitimate labor organization attaches itself in the
association of LLO with duly registered federation or national union.
Unregistered labor organization called chartering or charterd locale
LLO affiliation called affiliate (connection, augmentation of power)
Affiliate organization may disaffiliate with federation or national union if there is conflict of interest.
A duly registered labor union need not be granted a chartered certificate