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Labor 2 Midterms Reviewer PART ONE – LABOR RELATIONS POLICY A.

CONSTITUTION
Art III. 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. Art XIII. 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. duration of the strike or lockout. In such cases, therefore, the Secretary of Labor and Employment may immediately assume, within twenty four (24) hours from knowledge of the occurrence of such a strike or lockout, jurisdiction over the same or certify it to the Commission for compulsory arbitration. For this purpose, the contending parties are strictly enjoined to comply with such orders, prohibitions and/or injunctions as are issued by the Secretary of Labor and Employment or the Commission, under pain of immediate disciplinary action, including dismissal or loss of employment status or payment by the locking-out employer of backwages, damages and other affirmative relief, even criminal prosecution against either or both of them. The foregoing notwithstanding, the President of the Philippines shall not be precluded from determining the industries that, in his opinion, are indispensable to the national interest, and from intervening at any time and assuming jurisdiction over any such labor dispute in order to settle or terminate the same. Art. 124. Standards/Criteria for minimum wage fixing. (5) In cases where there are no collective agreements or recognized labor unions, the employers and workers shall endeavor to correct such distortions. Any dispute arising therefrom shall be settled through the National Conciliation and Mediation Board and, if it remains unresolved after ten (10) calendar days of conciliation, shall be referred to the appropriate branch of the National Labor Relations Commission (NLRC). It shall be mandatory for the NLRC to conduct continuous hearings and decide the dispute within twenty (20) calendar days from the time said dispute is submitted for compulsory arbitration. Art. 257. Petitions in unorganized establishments. In any establishment where there is no certified bargaining agent, a certification election shall automatically be conducted by the Med-Arbiter upon the filing of a petition by a legitimate labor organization. (As amended by Section 24, Republic Act No. 6715, March 21, 1989)

B. STATUTORY 1. METHODS OF DISPUTE SETTLEMENT

Art. 211. Declaration of Policy. (a) To promote and emphasize the primacy of free collective bargaining and negotiations, including voluntary arbitration, mediation and conciliation, as modes of settling labor or industrial disputes; (b) To promote free trade unionism as an instrument for the enhancement of democracy and the promotion of social justice and development; Art. 263. Strikes, picketing and lockouts. (g) When, in his opinion, there exists a labor dispute causing or likely to cause a strike or lockout in an industry indispensable to the national interest, the Secretary of Labor and Employment may assume jurisdiction over the dispute and decide it or certify the same to the Commission for compulsory arbitration. Such assumption or certification shall have the effect of automatically enjoining the intended or impending strike or lockout as specified in the assumption or certification order. If one has already taken place at the time of assumption or certification, all striking or locked out employees shall immediately return-to-work and the employer shall immediately resume operations and readmit all workers under the same terms and conditions prevailing before the strike or lockout. The Secretary of Labor and Employment or the Commission may seek the assistance of law enforcement agencies to ensure compliance with this provision as well as with such orders as he may issue to enforce the same. In line with the national concern for and the highest respect accorded to the right of patients to life and health, strikes and lockouts in hospitals, clinics and similar medical institutions shall, to every extent possible, be avoided, and all serious efforts, not only by labor and management but government as well, be exhausted to substantially minimize, if not prevent, their adverse effects on such life and health, through the exercise, however legitimate, by labor of its right to strike and by management to lockout. In labor disputes adversely affecting the continued operation of such hospitals, clinics or medical institutions, it shall be the duty of the striking union or locking-out employer to provide and maintain an effective skeletal workforce of medical and other health personnel, whose movement and services shall be unhampered and unrestricted, as are necessary to insure the proper and adequate protection of the life and health of its patients, most especially emergency cases, for the

1.

KIOK LOY VS. NLRC AND PAMBANSANG KILUSAN NG PAGGAWA (CUEVAS: G.R. NO. L-54334, JANUARY 22, 1986) Collective bargaining which is defined as negotiations towards a collective agreement, is one of the democratic frameworks under the New Labor Code, designed to stabilize the relation between labor and management and to create a climate of sound and stable industrial peace. It is a mutual responsibility of the employer and the Union and is characterized as a legal obligation. So much so that Article 249, par. (g) 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, hours of work, and all other terms and conditions of employment including proposals for adjusting any grievance or question arising under such an agreement and executing a contract incorporating such agreement, if requested by either party. While it is a mutual obligation of the parties to bargain, the employer, however, is not under any legal duty to initiate contract negotiation. The mechanics of collective bargaining is set in motion only when the following jurisdictional preconditions are present, 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; (2) proof of majority representation; and (3) a demand to bargain under Article 251, par. (a) of the New Labor Code . ... all of which preconditions are undisputedly present in the instant case.

2.

MANILA DIAMOND HOTEL EMPLOYEES’ UNION VS. CA, THE SECRETARY OF LABOR AND EMPLOYMENT, AND THE MANILA DIAMOND HOTEL (AZCUNA: G.R. NO. 140518, DECEMBER 16, 2004)

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Labor 2 Midterms Reviewer Whether the CA erred in ruling that the Secretary did not commit any grave abuse of discretion in ordering payroll reinstatement in lieu of actual reinstatement. This question is answered by the nature of Article 263(g). As a general rule, the State encourages an environment wherein employers and employees themselves must deal with their problems in a manner that mutually suits them best. This is the basic policy embodied in Article XIII, Section 3 of the Constitution, which was further echoed in Article 211 of the Labor Code. Hence, a voluntary, instead of compulsory, mode of dispute settlement is the general rule. However, Article 263, paragraph (g) of the Labor Code, which allows the Secretary of Labor to assume jurisdiction over a labor dispute involving an industry indispensable to the national interest, provides an exception in ART 263 (g) that “If a strike has already taken place at the time of assumption or certification, all striking or locked out employees shall immediately return to work and the employer shall immediately resume operations and readmit all workers under the same terms and conditions prevailing before the strike or lockout.” This provision is viewed as an exercise of the police power of the State. A prolonged strike or lockout can be inimical to the national economy and, therefore, the situation is imbued with public necessity and involves the right of the State and the public to selfprotection. Under Article 263(g), all workers must immediately return to work and all employers must readmit all of them under the same terms and conditions prevailing before the strike or lockout. This Court must point out that the law uses the precise phrase of “under the same terms and conditions,” revealing that it contemplates only actual reinstatement. This is in keeping with the rationale that any work stoppage or slowdown in that particular industry can be inimical to the national economy. It is clear that Article 263(g) was not written to protect labor from the excesses of management, nor was it written to ease management from expenses, which it normally incurs during a work stoppage or slowdown. It was an error on the part of the Court of Appeals to view the assumption order of the Secretary as a measure to protect the striking workers from any retaliatory action from the Hotel. This Court reiterates that this law was written as a means to be used by the State to protect itself from an emergency or crisis. It is not for labor, nor is it for management. This Court has always recognized the “great breadth of discretion” by the Secretary once he assumes jurisdiction over a labor dispute. However, payroll reinstatement in lieu of actual reinstatement is a departure from the rule in these cases and there must be showing of special circumstances rendering actual reinstatement impracticable, or otherwise not conducive to attaining the purpose of the law in providing for assumption of jurisdiction by the Secretary of Labor and Employment in a labor dispute that affects the national interest. None appears to have been established in this case. Even in the exercise of his discretion under Article 236(g), the Secretary must always keep in mind the purpose of the law. Time and again, this Court has held that when an official by-passes the law on the asserted ground of attaining a laudable objective, the same will not be maintained if the intendment or purpose of the law would be defeated. 2. TRADE UNIONISM
movement;

3.

WORKER ENLIGHTENMENT

Art. 211. Declaration of Policy. (d) To promote the enlightenment of workers concerning their rights and obligations as union members and as employees; Art. 277. Miscellaneous provisions. a. All unions are authorized to collect reasonable membership fees, union dues, assessments and fines and other contributions for labor education and research, mutual death and hospitalization benefits, welfare fund, strike fund and credit and cooperative undertakings.(As amended by Section 33, Republic Act No. 6715, March 21, 1989) Art. 241. Rights and conditions of membership in a labor organization. (p) It shall be the duty of any labor organization and its officers to inform its members on the provisions of its constitution and by-laws, collective bargaining agreement, the prevailing labor relations system and all their rights and obligations under existing labor laws.

3. VICTORIA VS. INCIONG AND FAR EAST BROADCASTING COMPANY, INC. (FERNAN: G.R. NO. L-49046 JANUARY 26, 1988) The strike staged by the union in 1972 was a futile move. The law then enforced, Republic Act 875 specifically excluded respondent company from its coverage. Even if the parties had gone to court to compel recognition, no positive relief could have been obtained since the same was not sanctioned by law. Because of this, there was no necessity on the part of private respondent to show specific acts of petitioner during the strike to justify his dismissal. This is a matter of responsibility and of answerability. Victoria, as a union leader, must see to it that the policies and activities of the union in the conduct of labor relations are within the precepts of law and any deviation from the legal boundaries shall be imputable to the leader. He bears the responsibility of guiding the union along the path of law and to cause the union to demand what is not legally demandable, would foment anarchy which is a prelude to chaos. Victoria should have known and it was his duty to impart this imputed knowledge to the members of the union that employees and laborers in non- profit organizations are not covered by the provisions of the Industrial Peace Act and the Court of Industrial Relations has no jurisdiction to entertain petitions of labor unions or organizations of said non-profit organizations for certification as the exclusive bargaining representatives of said employees and laborers. As a strike is an economic weapon at war with the policy of the Constitution and the law at that time, a resort thereto by laborers shall be deemed to be a choice of remedy peculiarly their own and outside of the statute, and as such, the strikers must accept all the risks attendant upon their choice. If they succeed and the employer succumbs, the law will not stand in their way in the enjoyment of the lawful fruits of their victory. But if they fail, they cannot thereafter invoke the protection of the law for the consequences of their conduct unless the right they wished vindicated is one which the law will, by all means, protect and enforce. 4. SANTA ROSA COCA-COLA PLANT EMPLOYEES UNION VS. COCACOLA BOTTLERS PHILS., INC. (CALLEJO, SR.: G.R. NOS. 164302-03; JANUARY 24, 2007) The law makes a distinction between union members and union officers. A worker merely participating in an illegal strike may not be terminated from employment. It is only when he commits illegal acts during a strike that he may be declared to have lost employment status. For knowingly participating in an illegal strike

Art. 211. Declaration of Policy. b. To promote free trade unionism as an instrument for the enhancement of democracy and the promotion of social justice and development; c. To foster the free and voluntary organization of a strong and united labor

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Labor 2 Midterms Reviewer or participating in the commission of illegal acts during a strike, the law provides that a union officer may be terminated from employment. The law grants the employer the option of declaring a union officer who participated in an illegal strike as having lost his employment. It possesses the right and prerogative to terminate the union officers from service. Union officers are duty-bound to guide their members to respect the law. If instead of doing so, the officers urge the members to violate the law and defy the duly constituted authorities, their dismissal from the service is just penalty or sanction for their unlawful acts. The officers’ responsibility is greater than that of the members. Here, the law required respondents to follow a set of mandatory procedures before they could go on with their strike. But obviously, rather than call on their members to comply therewith, respondents were the first ones to violate the same. Officers normally mean those who hold defined offices. An officer is any person occupying a position identified as an office. An office may be provided in the constitution of a labor union or by the union itself in its CBA with the employer. An office is a word of familiar usage and should be construed according to the sense of the thing. Since the jurisdiction of shop stewards and the supervisors includes the determination of the issues arising from the interpretation or even implementation of a provision of the CBA, or from any order or memorandum, circular or assignments issued by the appropriate authority in the establishment, they are part and parcel of the continuous process of grievance resolution designed to preserve and maintain peace among the employees and their employer. They occupy positions of trust and laden with awesome responsibilities. In this case, instead of playing the role of “peacemakers” and grievance solvers, the petitioners-shop stewards participated in the strike. Thus, like the officers and directors of the Union who joined the strike, petitioners-shop stewards also deserve the penalty of dismissal from their employment.
Five (5) members each shall be chosen from among the nominees of the workers and employers organizations, respectively. The Chairman and the four (4) remaining members shall come from the public sector, with the latter to be chosen from among the recommendees of the Secretary of Labor and Employment. Upon assumption into office, the members nominated by the workers and employers organizations shall divest themselves of any affiliation with or interest in the federation or association to which they belong. The Commission may sit en banc or in five (5) divisions, each composed of three (3) members. Subject to the penultimate sentence of this paragraph, the Commission shall sit en banc only for purposes of promulgating rules and regulations governing the hearing and disposition of cases before any of its divisions and regional branches, and formulating policies affecting its administration and operations. The Commission shall exercise its adjudicatory and all other powers, functions, and duties through its divisions. Of the five (5) divisions, the first, second and third divisions shall handle cases coming from the National Capital Region and the parts of Luzon; and the fourth and fifth divisions, cases from the Visayas and Mindanao, respectively; Provided that the Commission sitting en banc may, on temporary or emergency basis, allow cases within the jurisdiction of any division to be heard and decided by any other division whose docket allows the additional workload and such transfer will not expose litigants to unnecessary additional expense. The divisions of the Commission shall have exclusive appellate jurisdiction over cases within their respective territorial jurisdictions. [As amended by Republic Act No. 7700]. The concurrence of two (2) Commissioners of a division shall be necessary for the pronouncement of judgment or resolution. Whenever the required membership in a division is not complete and the concurrence of two (2) commissioners to arrive at a judgment or resolution cannot be obtained, the Chairman shall designate such number of additional Commissioners from the other divisions as may be necessary. The conclusions of a division on any case submitted to it for decision shall be reached in consultation before the case is assigned to a member for the writing of the opinion. It shall be mandatory for the division to meet for purposes of the consultation ordained herein. A certification to this effect signed by the Presiding Commissioner of the division shall be issued and a copy thereof attached to the record of the case and served upon the parties. The Chairman shall be the Presiding Commissioner of the first division and the four (4) other members from the public sector shall be the Presiding Commissioners of the second, third, fourth and fifth divisions, respectively. In case of the effective absence or incapacity of the Chairman, the Presiding Commissioner of the second division shall be the Acting Chairman. The Chairman, aided by the Executive Clerk of the Commission, shall have administrative supervision over the Commission and its regional branches and all its personnel, including the Executive Labor Arbiters and Labor Arbiters. The Commission, when sitting en banc shall be assisted by the same Executive Clerk and, when acting thru its Divisions, by said Executive Clerks for the second, third, fourth and fifth Divisions, respectively, in the performance of such similar or equivalent functions and duties as are discharged by the Clerk of Court and Deputy Clerks of Court of the Court of Appeals. (As amended by Section 5, Republic Act No. 6715, March 21, 1989) Art. 214. Headquarters, Branches and Provincial Extension Units. The Commission and its First, Second and Third divisions shall have their main offices in Metropolitan Manila, and the Fourth and Fifth divisions in the Cities of Cebu and Cagayan de Oro, respectively. The Commission shall establish as many regional branches as there are regional offices of the Department of Labor and Employment, sub-regional branches or provincial extension units. There shall be as many Labor Arbiters as may be necessary for the effective and efficient operation of the Commission. Each regional branch shall be headed by an Executive Labor Arbiter. (As amended by Section 6, Republic Act No. 6715, March 21, 1989) Art. 215. Appointment and Qualifications. The Chairman and other

CONTINENTAL CEMENT CORPORATION LABOR UNION VS. CONTINENTAL CEMENT CORPORATION AND THE DEPUTY MINISTER OF LABOR (GANCAYCO: G.R. NO. 51544 AUGUST 30, 1990) The officers had the duty to guide their members to respect the law. Instead, they urged them to violate the law and defy the duly constituted authorities. Their responsibility is greater than that of the members. Their dismissal from the service is a just penalty for their unlawful acts. It is within the power of the NLRC to order the removal of the officers of petitioner. This is provided for in the labor law. Art. 242. (p) “The Bureau shall have the power to hear and decide any reported violation and to mete out the appropriate penalty.” The officers of petitioner misinformed the members and led them into staging an illegal strike. If the NLRC is to attain the objective of the Labor Code to ensure a stable but dynamic and just industrial peace, the removal of undesirable labor leaders must be effected. 4. MACHINERY DISPUTE SETTLEMENT

5.

Art. 211 (e) To provide an adequate administrative machinery for the expeditious settlement of labor or industrial disputes Art. 213. National Labor Relations Commission. There shall be a National Labor Relations Commission which shall be attached to the Department of Labor and Employment for program and policy coordination only, composed of a Chairman and fourteen (14) Members.

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The Commission shall have the power and authority: a. Salaries. rules and regulations. statement of accounts.Claims for actual. where it is trivial or where further proceedings by the Commission are not necessary or desirable. may cause grave or irreparable damage to any party or render ineffectual any decision in favor of such party: Provided. 6715. The Executive Labor Arbiters and Labor Arbiters shall also be appointed by the President.The Commission shall have exclusive appellate jurisdiction over all cases decided by Labor Arbiters.Unfair labor practice cases. h.If accompanied with a claim for reinstatement. The Chairman and the other Commissioners. rules and regulations. 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.(As amended by Section 8. 6715. and dismiss any matter or refrain from further hearing or from determining the dispute or part thereof. March 21. adjourn its hearings to any time and place. and d. respectively.Termination disputes. rates of pay. moral. whether agricultural or nonagricultural: b.Cases arising from any violation of Article 264 of this Code. March 21. The Chairman. Republic Act No. unless sooner removed for cause as provided by law or become incapacitated to discharge the duties of their office. 217. 1989) Art. Indirect contempt shall be dealt with by the Commission or Labor Arbiter in the manner prescribed under Rule 71 of the Revised Rules of Court. if it be a Labor Arbiter. contracts. if not restrained or performed forthwith.000. including disrespect toward said officials. However. subject to the Civil Service Law. appoint the staff and employees of the Commission and its regional branches as the needs of the service may require.To conduct investigation for the determination of a question. 6715. papers. March 21. agreements. involving an amount exceeding five thousand pesos (P5. with at least three (3) years experience or exposure in the field of labor-management relations: Provided. upon recommendation of the Secretary of Labor and Employment and shall be subject to the Civil Service Law. amend. and be entitled to the same allowances and benefits as that of an Assistant Regional Director of the Department of Labor and Employment. or to answer as a witness or to subscribe an affidavit or deposition when lawfully required to do so. with at least five (5) years experience or exposure in the field of labormanagement relations. Republic Act No. and shall preferably be residents of the region where they are to hold office. 1989) Chapter II POWERS AND DUTIES Art. and g. direct parties to be joined in or excluded from the proceedings. Appointment to any vacancy shall come from the nominees of the sector which nominated the predecessor. and to testify in any investigation or hearing conducted in pursuance of this Code. matter or controversy within its jurisdiction. 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.00) regardless of whether accompanied with a claim for reinstatement. The Labor Arbiters shall receive an annual salary at least equivalent to. and others as may be material to a just determination of the matter under investigation. e. or both.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. or by a fine not exceeding one hundred pesos (P100) or imprisonment not exceeding one (1) day. the Labor Arbiters shall have original and exclusive jurisdiction to hear and decide.Labor 2 Midterms Reviewer 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. refer technical matters or accounts to an expert and to accept his report as evidence after hearing of the parties upon due notice. even in the absence of stenographic notes. Judgment of the Commission on direct contempt is immediately executory and unappealable. those cases that workers may file involving wages. 216. (As amended by Section 7. 1989) Art.To promulgate rules and regulations governing the hearing and disposition of cases before it and its regional branches. allowances and benefits of the aforementioned officials. conduct its proceedings or any part thereof in public or in private. shall the provision of this Article result in the diminution of existing salaries. offensive personalities toward others.Cases arising from the interpretation or implementation of collective bargaining agreements and those arising from the interpretation or enforcement of company personnel policies shall be disposed of by the Labor Arbiter by referring the same to the grievance machinery and voluntary arbitration as may be provided in said agreements. The Executive Labor Arbiters shall receive an annual salary at least equivalent to that of an Assistant Regional Director of the Department of Labor and Employment and shall be entitled to the same allowances and benefits as that of a Regional Director of said Department. March 21. 218. benefits and other emoluments in accordance with law. i.To hold any person in contempt directly or indirectly and impose appropriate penalties therefor in accordance with law. c.To administer oaths. benefits and other emoluments. the following cases involving all workers. The Chairman and members of the Commission shall receive an annual salary at least equivalent to. the division Presiding Commissioners and other Commissioners shall be appointed by the President. 6715. or both. hours of work and other terms and conditions of employment. The Secretary of Labor and Employment shall. and upgrade their current salaries. c. issue subpoenas requiring the attendance and testimony of witnesses or the production of such books. proceed to hear and determine the disputes in the absence of any party thereto who has been summoned or served with notice to appear. including questions involving the legality of strikes and lockouts. correct. including those of persons in domestic or household service. Republic Act No. SOBREVIÑAS [2nd Sem 2011-2012] 4 . the Executive Labor Arbiters and Labor Arbiters shall hold office during good behavior until they reach the age of sixty-five years. d.Except claims for Employees Compensation. and (As amended by Section 10. however. or a member thereof. Social Security. 1989) e. subject to confirmation by the Commission on Appointments. Powers of the Commission. 6715. defect or irregularity whether in substance or in form. 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 by such person of a bond on condition that he will abide by and perform the judgment of the Commission should the appeal be decided against him. Jurisdiction of the Labor Arbiters and the Commission. as well as those pertaining to its internal functions and such rules and regulations as may be necessary to carry out the purposes of this Code. March 21. summon the parties to a controversy. (As amended by Section 10. or waive any error. Republic Act No. 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 PROF. 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. exemplary and other forms of damages arising from the employer-employee relations. (As amended by Section 9. In no case. all other claims arising from employer-employee relations. or refusal to be sworn. if it be the Commission. a. within thirty (30) calendar days after the submission of the case by the parties for decision without extension. and be entitled to the same allowances and benefits as those of the Presiding Justice and Associate Justices of the Court of Appeals.Except as otherwise provided under this Code. give all such directions as it may deem necessary or expedient in the determination of the dispute before it. Republic Act No. in consultation with the Chairman of the Commission. 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. f. 1989) b. records. Medicare and maternity benefits.

and only after a finding of fact by the Commission. 1981) Art. Batas Pambansa Bilang 130. Appearances and Fees. together with a reasonable attorney’s fee. in support of the allegations of a complaint made under oath. SOBREVIÑAS [2nd Sem 2011-2012] 5 . Any provision of law to the contrary notwithstanding. 1989). and j. The Commission or any Labor Arbiter shall have the power to ask the assistance of other government officials and qualified private citizens to act as compulsory arbitrators on cases referred to them and to fix and assess the fees of such compulsory arbitrators.No attorney’s fees. that attorney’s fees may be charged against union funds in an amount to be agreed upon by the parties. 1989) Art. machinery. (As amended by Presidential Decree No. to justify the Commission in issuing a temporary injunction upon hearing after notice. 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. Republic Act No. August 21. The parties to a Collective Bargaining Agreement shall include therein provisions that will ensure the mutual observance of its terms and conditions. prohibited or unlawful act. any Commissioner. charged with the duty to protect complainant’s property: Provided.That prohibited or unlawful acts have been threatened and will be committed and will be continued unless restrained. 220. 1989) Art. Technical rules not binding and prior resort to amicable settlement. a substantial and irreparable injury to complainant’s property will be unavoidable. material. the Labor Arbiter shall exert all efforts towards the amicable settlement of a labor dispute within his jurisdiction on or before the first hearing. In any proceeding before the Commission or any Labor Arbiter. however. and the fees provided in the Rules of Court. but no injunction or temporary restraining order shall be issued on account of any threat. at any time during working hours. place or premises.] (Repealed by Section 16. 6715. March 21. 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. 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. the said complainant and surety submitting themselves to the jurisdiction of the Commission for that purpose. or any person. The same rule shall apply to the Commission in the exercise of its original jurisdiction. The Bureau shall have fifteen (15) working days to act on labor cases before it. as the case may be. upon a hearing to assess damages. whether agricultural or nonagricultural. or include in the agreement a procedure for the selection of PROF.If they represent themselves. for any information or data concerning any matter or question relative to the object of the investigation. may. including all reasonable costs. negotiation fees or similar charges of any kind arising from any collective bargaining agreement shall be imposed on any individual member of the contracting union: Provided. building.That the public officers charged with the duty to protect complainant’s property are unable or unwilling to furnish adequate protection. laborer. h. association or organization making the threat or committing the prohibited or unlawful act or actually authorizing or ratifying the same after actual knowledge thereof. 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. the time consumed in hearing the case. on all inter-union and intra-union conflicts. 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. all in the interest of due process. such a temporary restraining order may be issued upon testimony under oath. any Presiding Commissioner or Commissioner or any Labor Arbiter to exercise complete control of the proceedings at all stages. Any contract. Republic Act No. the rules of evidence prevailing in courts of law or equity shall not be controlling and it is the spirit and intention of this Code that the Commission and its members and the Labor Arbiters shall use every and all reasonable means to ascertain the facts in each case speedily and objectively and without regard to technicalities of law or procedure. 222. greater injury will be inflicted upon complainant by the denial of relief than will be inflicted upon defendants by the granting of relief. 1980) Art.That as to each item of relief to be granted. the professional standing of the arbitrators. Art. taking into account the nature of the case. except against the person or persons. (As amended by Section 11.That complainant has no adequate remedy at law. and testimony in opposition thereto. May 1. However. implement. (As amended by Section 10. Ocular inspection. the financial capacity of the parties. Republic Act No. 219. Such hearing shall be held after due and personal notice thereof has been served. In any proceeding before the Commission or any of the Labor Arbiters. in such manner as the Commission shall direct. 6715. appliance or any object therein. and ask any employee. expense or damage caused by the improvident or erroneous issuance of such order or injunction. to all known persons against whom relief is sought. including any work. grievances or problems arising from or affecting labor-management relations in all workplaces. Compulsory arbitration. that if a complainant shall also allege that. or c. of which hearing. parties to a Collective Bargaining Agreement shall name and designate in advance a Voluntary Arbitrator or panel of Voluntary Arbitrators. g. if sustained. to the effect: f. a. subject to extension by agreement of the parties. and all disputes. 6715. Grievance machinery and voluntary arbitration. if offered. 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. 260.If they represent their organization or members thereof. shall have original and exclusive authority to act. with opportunity for cross-examination. i. March 21. March 21. Bureau of Labor Relations. 1691. ship or vessel. 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. unless a temporary restraining order shall be issued without notice. Labor Arbiter or their duly authorized representatives. except those arising from the implementation or interpretation of collective bargaining agreements which shall be the subject of grievance procedure and/or voluntary arbitration. conduct an ocular inspection on any establishment. at their own initiative or upon request of either or both parties. d. 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. 226. sufficient. 221.Labor 2 Midterms Reviewer testimony of witnesses. The Chairman. agreement or arrangement of any sort to the contrary shall be null and void. further. For this purpose. (As amended by Section 14. Art. 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. The Bureau of Labor Relations and the Labor Relations Divisions in the regional offices of the Department of Labor.That substantial and irreparable injury to complainant’s property will follow.Non-lawyers may appear before the Commission or any Labor Arbiter only: b. complainant and surety shall have reasonable notice. the parties may be represented by legal counsel but it shall be the duty of the Chairman.

277. gross violations of Collective Bargaining Agreement shall mean flagrant and/or malicious refusal to comply with the economic provisions of such agreement. Art. (g).any other aspects of employer-employee relations concerning the promotion of harmony and understanding between the parties. or the Director of the Bureau of Labor Relations or Med-Arbiter. INC. NLRC. c.the extent and results of the methods of collective bargaining in the determination of terms and conditions of employment. upon agreement of the parties. The Secretary of Labor shall also inquire into the causes of industrial unrest and take all the necessary steps within his power as may be prescribed by law to alleviate the same. INDUSTRIAL PEACE 6. its Regional Offices and the Regional Directors of the Department of Labor and Employment shall not entertain disputes. Art. g. and i. working conditions and the quality of working life.the growth of associations of employees and the effect of such associations upon employer-employee relations. d. as may be necessary. the periods provided in this Code within which decisions or resolutions of labor relations cases or matters should be rendered shall be mandatory. b. SOBREVIÑAS [2nd Sem 2011-2012] 6 . Miscellaneous provisions. shall no longer be treated as unfair labor practice and shall be resolved as grievances under the Collective Bargaining Agreement. PHILIPPINE AIRLINES. the exercise of management prerogatives was never considered boundless. the Executive Labor Arbiter. labor-management cooperation programs at appropriate levels of the enterprise based on the shared responsibility and mutual respect in order to ensure industrial peace and improvement in productivity. 255. 6715. Jurisdiction over other labor disputes. Republic Act No. workers and employers may form labor-management councils: Provided. even in the absence of said clear provision of law. (As amended by Section 33. f. 1989. 261. Accordingly. 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. It is circumscribed PROF. an individual employee or group of employees shall have the right at any time to present grievances to their employer. 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 was no law which mandated the sharing of responsibility therefor between employer and employee. 211 (f) To ensure a stable but dynamic and just industrial peace. and shall from time to time recommend the enactment of such remedial legislation as in his judgment may be desirable for the maintenance and promotion of industrial peace. it was only on March 2. Art.the methods which have been tried by employers and associations of employees for maintaining mutually satisfactory relations. h. labormanagement committees may be formed voluntarily by workers and employers for the purpose of promoting industrial peace. For this purpose. workers shall have the right. without prejudice to any liability which may have been incurred as a consequence thereof. Study of labor-management relations. (PAL) VS. 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. In case the parties fail to select a Voluntary Arbitrator or panel of Voluntary Arbitrators. benefits and welfare.the relevance of labor laws and labor relations to national development. 6715. or the Regional Director. However. NO. 277. Despite the expiration of the applicable mandatory period. (Incorporated by Batas Pambansa Bilang 130. March 21. LA ORTIGUERRA AND PALEA (MELO: G. The Voluntary Arbitrator or panel of Voluntary Arbitrators. 6715. Upon expiration of the corresponding period. Indeed. To ensure the participation of workers in decision and policymaking processes affecting their rights. 6.the possibilities for the adoption of practical and effective methods of labor-management cooperation. that the law explicitly considered it a State policy "to ensure the participation of workers in decision and policy-making processes affecting the rights. a certification stating why a decision or resolution has not been rendered within the said period shall be issued forthwith by the Chairman of the Commission. as the case may be. or the Regional Director. Any provision of law to the contrary notwithstanding. August 21. March 21. the Board shall designate the Voluntary Arbitrator or panel of Voluntary Arbitrators. The Secretary of Labor shall have the power and it shall be his duty to inquire into: a. 273. 1989) collective bargaining and other voluntary arrangements. or the Labor Arbiter. preferably from the listing of qualified Voluntary Arbitrators duly accredited by the Board. (i) To ensure speedy labor justice. Republic Act No. 85985 AUGUST 13. see to it that the case or matter shall be decided or resolved without any further delay.(Incorporated by Section 33. Exclusive bargaining representation and workers’ participation in policy and decision-making. except those which are gross in character. with the agreement of labor organizations and employers. 1989) 5. to participate in policy and decision-making processes of the establishment where they are employed insofar as said processes will directly affect their rights. e. WORKER PARTICIPATION IN DECISION-MAKING Art 211. 1989) Art. 1993) Art. For purposes of this article. duties and welfare. 262. pursuant to the selection procedure agreed upon in the Collective Bargaining Agreement." However. For this purpose. shall also hear and decide all other labor disputes including unfair labor practices and bargaining deadlocks. with the approval of RA 6715 that amended Art 211 of the LC. the aforesaid officials shall.Labor 2 Midterms Reviewer such Voluntary Arbitrator or panel of Voluntary Arbitrators. Art. The Department of Labor and Employment shall endeavor to enlighten and educate the workers and employers on their rights and responsibilities through labor education with emphasis on the policy thrusts of this Code. 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. 1981) (h) In establishments where no legitimate labor organization exists. duties and welfare. (As amended by Section 22. Jurisdiction of Voluntary Arbitrators or panel of Voluntary Arbitrators. a case or matter shall be deemed submitted for decision or resolution upon the filing of the last pleading or memorandum required by the rules of the Commission or by the Commission itself. and a copy thereof served upon the parties. The Commission.the existing relations between employers and employees in the Philippines. Republic Act No. or the Director of the Bureau of Labor Relations or Med-Arbiter. (g) The Ministry shall help promote and gradually develop.desirable industrial practices which have been developed through Whether management may be compelled to share with the union or its employees its prerogative of formulating a code of discipline PAL asserts that when it revised its Code in 1985. 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. violations of a Collective Bargaining Agreement. subject to such rules and regulations as the Secretary of Labor and Employment may promulgate.R. Art. March 21.the possible ways of increasing the usefulness and efficiency of collective bargaining for settling differences.

The need to induce industries to invest in the countryside. clinics or medical institutions. a collective bargaining agreement. the employer should see to it that its employees are at least properly informed of its decision or modes of action in order to attain a harmonious labor-management relationship and enlighten the workers concerning their rights. are indispensable to the national interest. b. a line must be drawn between management prerogatives regarding business operations per se and those which affect the rights of employees. 99. FEBRUARY 22. as employees. Art.Effects on employment generation and family income. MANILA ELECTRIC COMPANY VS. under pain of immediate disciplinary action. In such cases. It has the ultimate determination of whether services should be performed by its personnel or contracted to outside agencies. In line with the national concern for and the highest respect accorded to the right of patients to life and health.The prevailing wage levels. i. NO. to every extent possible. if not prevent. an itemized listing of their labor component. however legitimate. industrial peace cannot be achieved if the employees are denied their just participation in the discussion of matters affecting their rights. and Jurisprudence also provides adequate limitations. d. QUISUMBING AND MERALCO EMPLOYEES AND WORKERS ASSOCIATION (YNARES-SANTIAGO: G." While an "obligation" was not yet founded in law when the Code was formulated. Absent proof that management acted in a malicious or arbitrary manner. e. 124. such that the employer must be motivated by good faith and the contracting out should not be resorted to circumvent the law or must not have been the result of malicious or arbitrary actions. SOBREVIÑAS [2nd Sem 2011-2012] 7 . Moreover. specifying the names of their workers and employees below the managerial level.Fair return of the capital invested and capacity to pay of employers. by labor of its right to strike and by management to lockout.Wage adjustment vis-à-vis the consumer price index. Hiring of workers is within the employer’s inherent freedom to regulate and is a valid exercise of its management prerogative subject only to special laws and agreements on the matter and the fair standards of justice. it shall be the duty of the striking union or locking-out employer to provide and maintain an effective skeletal workforce of medical and other health personnel. even criminal prosecution against either or both of them. even before Article 211 of the LC was amended by RA 6715. 6727. conditions make such local differentiation proper and necessary to effectuate the purpose of this Title. Art. including learners. f. not only by labor and management but government as well. corporation. Thus. The wages prescribed in accordance with the provisions of this Title shall be the standard prevailing minimum wages in every region. "(d) To promote the enlightenment of workers concerning their rights and obligations . the President of the Philippines shall not be precluded from determining the industries that. company.The equitable distribution of income and wealth along the imperatives of economic and social development. and in treating the latter. Any person. all striking or locked out employees shall immediately return-to-work and the employer shall immediately resume operations and readmit all workers under the same terms and conditions prevailing before the strike or lockout. For this purpose. . Regional minimum wages. WAGE FIXING such orders as he may issue to enforce the same. In the determination of such regional minimum wages. provinces or localities if in the judgment of the Regional Board. for the duration of the strike or lockout. June 9. The minimum wage rates for agricultural and non-agricultural employees and workers in each and every region of the country shall be those prescribed by the Regional Tripartite Wages and Productivity Boards. (g) When. These wages shall include wages varying with industries. The Secretary of Labor and Employment or the Commission may seek the assistance of law enforcement agencies to ensure compliance with this provision as well as with PROF. jurisdiction over the same or certify it to the Commission for compulsory arbitration. Such assumption or certification shall have the effect of automatically enjoining the intended or impending strike or lockout as specified in the assumption or certification order. be avoided.The needs of workers and their families. the Regional Board shall. most especially emergency cases. and from intervening at any time and assuming jurisdiction over any such labor dispute in order to settle or terminate the same. in his opinion. Standards/Criteria for minimum wage fixing. among other relevant factors. prohibitions and/or injunctions as are issued by the Secretary of Labor and Employment or the Commission. While there should be mutual consultation. partnership or any other entity engaged in business shall file and register annually with the appropriate Regional Board. Contracting out of services is an exercise of business judgment or management prerogative. strikes and lockouts in hospitals. 7. including dismissal or loss of employment status or payment by the locking-out employer of backwages. Republic Act No. (As amended by Section 3. it was already declared a policy of the State. clinics and similar medical institutions shall. and j. c. . apprentices and disabled/handicapped workers who were hired under the terms prescribed in the employment contracts. the contending parties are strictly enjoined to comply with such orders. The management cannot be denied the faculty of promoting efficiency and attaining economy by a study of what units are essential for its operation. as are necessary to insure the proper and adequate protection of the life and health of its patients. In labor disputes adversely affecting the continued operation of such hospitals. and their corresponding salaries and wages. The foregoing notwithstanding. eventually deference is to be paid to what management decides. the Court will not interfere with the exercise of judgment by an employer. consider the following: a. 1989). 263.R.The cost of living and changes or increases therein. If one has already taken place at the time of assumption or certification. 7. The regional minimum wages to be established by the Regional Board shall be as nearly adequate as is economically feasible to maintain the minimum standards of living necessary for the health. 127598. their adverse effects on such life and health. The law already sufficiently regulates this matter. Indeed. However. To promote free trade unionism as an instrument for the enhancement of democracy and the promotion of social justice and development. 211. h. Art. be exhausted to substantially minimize. efficiency and general well-being of the employees within the framework of the national economic and social development program. the Secretary of Labor and Employment may assume jurisdiction over the dispute and decide it or certify the same to the Commission for compulsory arbitration. Commission and the National Statistics Office. in his opinion. and all serious efforts. the attainment of a harmonious labor-management relationship and the already existing state policy of enlightening workers concerning their rights as employees demand no less than the observance of transparency in managerial moves affecting employees' rights.The demand for living wages. g. the Secretary of Labor and Employment may immediately assume. or the general principles of fair play and justice.Labor 2 Midterms Reviewer by limitations found in law. it must be duly established that the prerogative being invoked is clearly a managerial one. there exists a labor dispute causing or likely to cause a strike or lockout in an industry indispensable to the national interest. through the exercise. therefore. within twenty four (24) hours from knowledge of the occurrence of such a strike or lockout. (b).Improvements in standards of living. Art. 2000) The employer is allowed to contract out services for six months or more. whose movement and services shall be unhampered and unrestricted. damages and other affirmative relief.

impede. 4. The pendency of a dispute arising from a wage distortion shall not in any way delay the applicability of any increase in prescribed wage rates pursuant to the provisions of law or wage order. LABOR INJUNCTION Art. Prohibited activities. That complainant has no adequate remedy at law.Labor 2 Midterms Reviewer Where the application of any prescribed wage increase by virtue of a law or wage order issued by any Regional Board results in distortions of the wage structure within an establishment. except as otherwise provided in Articles 218 and 264 of this Code. even if a replacement had been hired by the employer during such lawful strike. That substantial and irreparable injury to complainant’s property will follow. a. the employer and the union shall negotiate to correct the distortions. if offered. the employers and workers shall endeavor to correct such distortions. a wage distortion shall mean a situation where an increase in prescribed wage rates results in the elimination or severe contraction of intentional quantitative differences in wage or salary rates between and among employee groups in an establishment as to effectively obliterate the distinctions embodied in such wage structure based on skills. coercion. takay. and 5. 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 labor organization or employer shall declare a strike or lockout without first having bargained collectively in accordance with Title VII of this Book or without first having filed the notice required in the preceding Article or without the necessary strike or lockout vote first having been obtained and reported to the Ministry. in such manner as the Commission shall direct. 254. 1989) property are unable or unwilling to furnish adequate protection. greater injury will be inflicted upon complainant by the denial of relief than will be inflicted upon defendants by the granting of relief. Any dispute arising therefrom shall be settled through the National Conciliation and Mediation Board and. association or organization making the threat or committing the prohibited or unlawful act or actually authorizing or ratifying the same after actual knowledge thereof. charged with the duty to protect complainant’s property: Provided. threats or intimidation. (As amended by Section 10. if it remains unresolved after ten (10) calendar days of conciliation. including all reasonable costs. if sustained. if not restrained or performed forthwith. any peaceful picketing by employees during any labor controversy or in the exercise of the right to selforganization or collective bargaining. That the public officers charged with the duty to protect complainant’s PROF. Any dispute arising from wage distortions shall be resolved through the grievance procedure under their collective bargaining agreement and. That prohibited or unlawful acts have been threatened and will be committed and will be continued unless restrained. or shall aid or abet such obstruction or interference. June 1. shall receive not less than the prescribed wage rates per eight (8) hours of work a day. All recognized learnership and apprenticeship agreements shall be considered automatically modified insofar as their wage clauses are concerned to reflect the prescribed wage rates. such a temporary restraining order may be issued upon testimony under oath. and testimony in opposition thereto.No employer shall use or employ any strike-breaker. violence. if it remains unresolved. except against the person or persons. 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. pakyaw or task basis. such dispute shall be decided by the voluntary arbitrators within ten (10) calendar days from the time said dispute was referred to voluntary arbitration. or interfere with. and only after a finding of fact by the Commission. Injunction prohibited. (As amended by Republic Act No. No strike or lockout shall be declared after assumption of jurisdiction by the President or the Minister or after certification or submission of the dispute to compulsory or voluntary arbitration or during the pendency of cases involving the same grounds for the strike or lockout. 218. including officers and personnel of the New Armed Forces of the Philippines or the Integrated National Police. 6727. As used herein. unless a temporary restraining order shall be issued without notice. length of service. with opportunity for cross-examination. including those who are paid on piecework. 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. 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. Any worker whose employment has been terminated as a consequence of any unlawful lockout shall be entitled to reinstatement with full backwages. d.No person shall obstruct. to all known persons against whom relief is sought. March 21. in support of the allegations of a complaint made under oath. or armed 8. 1982) Art. or other logical bases of differentiation. (e) 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. SOBREVIÑAS [2nd Sem 2011-2012] 8 . Unless otherwise agreed by the parties in writing. sufficient. 2. shall be referred to the appropriate branch of the National Labor Relations Commission (NLRC). 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. by force. 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. c. together with a reasonable attorney’s fee. to the effect: 1. 6715. prohibited or unlawful act. through voluntary arbitration. 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. 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. may cause grave or irreparable damage to any party or render ineffectual any decision in favor of such party: Provided. that if a complainant shall also allege that. but no injunction or temporary restraining order shall be issued on account of any threat. That mere participation of a worker in a lawful strike shall not constitute sufficient ground for termination of his employment. 264. In cases where there are no collective agreements or recognized labor unions. or a proportion thereof for working less than eight (8) hours. 3. upon a hearing to assess damages. Republic Act No. of which hearing. further. Powers of the Commission.No public official or employee. 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. b. All workers paid by result. complainant and surety shall have reasonable notice. That as to each item of relief to be granted. Any union officer who knowingly participates in an illegal strike and any worker or union officer who knowingly participates in the commission of illegal acts during a strike may be declared to have lost his employment status: Provided. nor shall any person be employed as a strike-breaker. (As amended by Batas Pambansa Bilang 227. however. the said complainant and surety submitting themselves to the jurisdiction of the Commission for that purpose. a substantial and irreparable injury to complainant’s property will be unavoidable. Such hearing shall be held after due and personal notice thereof has been served. June 9. 1989) Art. to justify the Commission in issuing a temporary injunction upon hearing after notice. It shall be mandatory for the NLRC to conduct continuous hearings and decide the dispute within twenty (20) calendar days from the time said dispute is submitted for compulsory arbitration.

2(f)]. workers and employers shall. BAUTISTA AND FEATI UNIVERSITY FACULTY CLUB-PAFLU (ZALDIVAR: G. (p) "Lockout" means any temporary refusal of an employer to furnish work as a result of an industrial or labor dispute.Labor 2 Midterms Reviewer person. or interferes with by force. (g) "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 concerning terms and conditions of employment. changing or arranging the terms and conditions of employment. introduce or escort in any manner. The term shall not be limited to the employees of a particular employer. "strike" [Sec. PROF. It shall include any individual whose work has ceased as a result of or in connection with any current labor dispute or because of any unfair labor practice if he has not obtained any other substantially equivalent and regular employment. including the sites or premises used as runaway shops. (q) "Internal union dispute" includes all disputes or grievances arising from any violation of or disagreement over any provision of the constitution and by laws of a union. NO. warehouses. 6715. Tripartism and tripartite conferences. or one chosen with or without the assistance of the National Conciliation and Mediation Board. SEC 1 BOOK V IMPLEMENTING RULES Article. 126. (r) "Strike-breaker" means any person who obstructs. 9. or industrial tripartite conference of representatives of government. in the interest of the employer. or work in place of the strikers. It will be noted that in defining the term "employer" the Act uses the word "includes". A methodical variation in terminology is manifest. (As amended by Executive Order No. threats. 275. That nothing herein shall be interpreted to prevent any public officer from taking any measure necessary to maintain peace and order. 2. STATUTORY REFERENCE – 212. 2(g)]. protect life and property. 1966) We find no merit in this claim in the University's claims that it is not an employer within the contemplation of Republic Act No. 1989). because it is not an industrial establishment. In calling such conference. fixing. . Section 22. 2(i)]. regional. (e) "Employer" includes any person acting in the interest of an employer. In using the word "includes" and not "means". rather. Republic Act No. 875. "company union" [Sec. recall. transfer. 2 (d)]. (k) "Unfair labor practice" means any unfair labor practice as expressly defined by the Code. it must have been the result of a deliberate and purposeful act. (c) "Board" means the National Conciliation and Mediation Board established under Executive Order No. or intimidation any peaceful picketing affecting wages. (l) "Labor dispute" includes any controversy or matter concerning terms and conditions of employment or the association or representation of persons in negotiating. The police force shall keep out of the picket lines unless actual violence or other criminal acts occur therein: Provided. coercion or intimidation or obstruct the free ingress to or egress from the employer’s premises for lawful purposes. or obstruct public thoroughfares. or any official that may be authorized by the Secretary of Labor and Employment to act as Voluntary Arbitrator upon the written request and agreement of the parties to a labor dispute. including any violation of the rights and conditions of union membership provided for in this Code. 1982) RA 8791. hours or conditions of work or in the exercise of the right of self-organization or collective bargaining. more so when we consider that as legislative records show. discharge. (As amended by Section 4. call a national. (h) "Legitimate labor organization" means any labor organization duly registered with the Department of Labor and Employment. and not the word "means" which the Act uses in defining the terms "court" [Sec. DECEMBER 27. directly or indirectly. (i) "Company union" means any labor organization whose formation. (f) "Employee" includes any person in the employ of an employer. 2(k)]. Supervisory employees are those who. March 21. suspend. Congress did not intend 8. Towards this end. 111.R. (m) "Managerial employee" is one who is vested with the powers or prerogatives to lay down and execute management policies and/or to hire. December 24. The term shall not include anylabor organization or any of its officers or agents except when acting as employer. depots. impedes. coercion. plants or offices. (n) "Voluntary Arbitrator" means any person accredited by the Board as such or any person named or designated in the Collective Bargaining Agreement by the parties to act as their Voluntary Arbitrator. lay-off. (b) "Bureau" means the Bureau of Labor Relations and/or theLabor Relations Divisions in the regional offices established under Presidential Decree No.The banking industry is hereby declared as indispensable to the national interest and. 6715. regardless of whether the disputants stand in the proximate relation of employer and employee. which it also used in defining "employee". 2(l)] and "lock-out" [Sec. (d) "Council" means the Tripartite Voluntary Arbitration Advisory Council established under Executive Order No. and includes any branch or local thereof. Strikes and Lockouts. 1989) DEFINITION OF TERMS 1. "labor organization" [Sec. 875 had been meticulously and painstakingly drafted and deliberated upon. 2(a)]. unless the Code so explicitly states. March 21. Republic Act No. (As amended by Section 32. as far as practicable. as well as the immediate vicinity actually used by picketing strikers in moving to and fro before all points of entrance to and exit from said establishment. Definitions. However. [Sec. assign or discipline employees. June 1. effectively recommend such managerial actions if the exercise of such authority is not merely routinary or clerical in nature but requires the use of independent judgment. pursuant to a selection procedure agreed upon in the Collective Bargaining Agreement. Republic Act No. workers and employers for the consideration and adoption of voluntary codes of principles designed to promote industrial peace based on social justice or to align labor movement relations with established priorities in economic and social development. shall bring in. in the Department of Labor. Tripartism in labor relations is hereby declared a State policy. (s) "Strike area" means the establishment. All employees not falling within any of the above definitions are considered rank-and-file employees for purposes of this Book. function or administration has been assisted by any act defined as unfair labor practice by this Code. 2(e)]. maintaining. This variation and distinction in terminology and phraseology cannot be presumed to have been the inconsequential product of an oversight. any strike or lockout involving banks. the President of the Philippines may at any time intervene and assume jurisdiction over such labor dispute in order to settle or terminate the same. TRIPARTISM Art. (o) "Strike" means any temporary stoppage of work by the concerted action of employees as a result of an industrial orlabor dispute. and "representative" [Sec. 1. SOBREVIÑAS [2nd Sem 2011-2012] 9 . as the case may be. any individual who seeks to replace strikers in entering or leaving the premises of a strike area. and/or enforce the law and legal order. 1986) e. 2(h)]. of the employer struck against. "legitimate labor organization [Sec. if unsettled after seven (7) calendar days shall be reported by the Bangko Sentral to the secretary of Labor who may assume jurisdiction over the dispute or decide it or certify the sane to the National Labor Relations Commission for compulsory arbitration. be represented in decision and policy-making bodies of the government. from time to time. (a) "Commission" means the National Labor Relations Commission or any of its divisions. violence. L-21278. 126. "supervisor" [Sec. as amended. as provided under this Code. 212. the Secretary of Labor and Employment may consult with accredited representatives of workers and employers. "unfair labor practice" [Sec. notwithstanding the provisions of any law to the contrary. SIGNIFICANCE – ME ANS AND INCLUDES FEATI UNIVERSITY VS.No person engaged in picketing shall commit any act of violence. (j) "Bargaining representative" means a legitimate labororganization whether or not employed by the employer. The Secretary of Labor and Employment or his duly authorized representatives may. (As amended by Batas Pambansa Bilang 227. 2(m)].

still it is included in the term "employer". being the "person acting in the interest of the employer. The University engaged the services of the professors. except the Government and any of its political subdivisions. vs. firstly. the term employer is defined as follows: An employer is one who employs the services of others. C. It shall include any individual whose work has ceased as a result of or in connection with any current labor dispute or because of any unfair labor practice if he has not obtained any other substantially equivalent and regular employment. however. NO. business. L-22951 AND L-22952. BAUTISTA AND FEATI UNIVERSITY FACULTY CLUB-PAFLU (ZALDIVAR: G. secondly. In this case Cathy Ng. 2-c. ALLIED FREE WORKERS' UNION (PLUM) VS.C. The term encompasses those that are in ordinary parlance "employers. et al. The lexical definition is "one who employs. unless the Code so explicitly states. Even if the University may be considered as a lessee of services under a contract between it and the members of its Faculty. These are the very elements constituting an employer-employee relationship. educational institutions are not included. 146267. who may be held jointly and severally liable for the obligations of the corporation to its dismissed employees. directly or indirectly (Sec.R. industry. L-21278. Under the particular facts of this case. FEBRUARY 17. in her capacity as manager and responsible officer of NYK. Its organizational structure and operational system is no different from other commercial entities on the same line. which held that since a corporation is an artificial person. TEVES. And that it really is engaged in business is shown by the fact that it had arrastre and stevedoring contracts with other shipping firms in Iligan City. as per allegation of the University itself. The Social Security Act defines employer as "any person. directly or indirectly. and paid them compensation or salary for their services. Conformably with our ruling in A. and (3) the Government and any political subdivision or instrumentality thereof insofar as the right to strike for the purpose of securing changes or modifications in the terms and conditions of employment is concerned (Section 11). COMMON TERMS A. "Employee" includes any person in the employ of an employer. 875 does not give a comprehensive but only a complementary definition of the term "employer". AFWU appears to be more of a distinct and completely autonomous business group or association. the Act itself specifically enumerated those who are not included in the term "employer". (e) "Employer" includes any person acting in the interest of an employer. EMPLOYER Article 212. 2(c)]. (2) anyone acting in the capacity of officer or agent of such labor organization [Sec. "Running through the word `employ' is the thought that there has been an agreement on the part of one person to perform a certain service in return for compensation to be paid by an employer. is the employer. : G. B. it must have an officer who can be presumed to be the employer. Angat River Workers' Union (PLUM). Pursuant to prevailing jurisprudence. 1966) Republic Act No. has a contract with the latter for teaching services. instructor or teacher in the teaching staff of the University.R." 10. Under none of the above definitions may the University be excluded. 9. PROF. and the legal representative of the deceased employer" and "includes the owner or lessee of a factory or establishment or place of work or any other person who is virtually the owner or manager of the business carried on in the establishment or place of work but who. Ransom Labor Union-CCLU v. 4th ed. An employer includes any person acting in the interest of an employer. 875. 618). to hire. the thought that he is under agreement to perform some service or services for another is predominant and paramount. AND CIR (BENGZON. domestic or foreign." In other words the corporation. It was AFWU. natural or juridical. is the manager of NYK. JANUARY 31. through its officers. albeit for one semester only. DECEMBER 27. What the Court finds apropos is our disquisition in A. provided them work.R. and (4) had the power to discipline and dismiss them. and. The term shall not include any labor organization or any of its officers or agents except when acting as employer. to engage one's service. Ransom. When you ask how a man is employed. NLRC. COMPAÑIA MARITIMA. admittedly. Rep. she falls within the meaning of an "employer" as contemplated by the Labor Code." What is commonly meant by "employer"? The term "employer" has been given several acceptations. Among these statutory exemptions.Labor 2 Midterms Reviewer to give a complete definition of "employer". branches or instrumentalities. incorporated or not.P. (2) paid their wages. NO. EMPLOYEE Art212. especially so if it is considered that every professor. which (1) selected and hired the laborers. cannot be exonerated from her joint and several liability in the payment of monetary award to private respondent. SOBREVIÑAS [2nd Sem 2011-2012] 10 . for reason that there is an independent contractor in the same. public or private." The Workmen's Compensation Act defines employer as including "every person or association of persons. has ruled that those educational institutions that are not operated for profit are not within the purview of Republic Act No. 1967 The facts strongly indicate that it is AFWU itself who is the "employer" of those laborers. Cathy Ng. 11. It even has its own bill collectors and trucking facilities. including corporations owned or controlled by the Government. in the technical sense only. NYK INTERNATIONAL KNITWEAR AND/OR CATHY NG VS." and "to employ" is "to provide work and pay for." The Minimum Wage Law states that "employer includes any person acting directly or indirectly in the interest of the employer in relation to an employee and shall include the Government and the government corporations". one for whom employees work and who pays their wages or salaries (Black Law Dictionary. is not the direct employer of laborers employed there.. one who uses. however. Congress intended the term to be understood in a broad meaning because. NOS. The term shall not be limited to the employees of a particular employer. or for any other reason. they can be included in the term "employer". There is no legal impediment for a union to be an "employer". Act 875). namely: (1) a labor organization (otherwise than when acting as an employer). one who engages or keeps in service." In The Angat River Irrigation System. or what is his employment. hence. 3. This Court. FEATI UNIVERSITY VS. 2003) Anent petitioners’ assertion that they cannot be solidarily liable in this case as there was no malice or bad faith on their part has no leg to stand on. the statutory definition includes not only "a principal employer but also a person acting in the interest of the employer". p. J. but rather that such definition should be complementary to what is commonly understood as employer. or activity of any kind and uses the services of another person who is under his orders as regards the employment. NLRC AND PUBLICO (QUISUMBING: G. who carries in the Philippines any trade. (3) exercised control and supervision over them. undertaking.

the retirement of an employee does not. 1992) A group of deck officers organized the Cebu Seamen's Association. PRODUCERS BANK OF THE PHILIPPINES VS. Hence. Malayang Manggagawa sa Esso. as well as an effective inducement for remaining with the corporation. also. who are free to choose whichever position suits their conscience. C. INC. as being limited to the employees of particular employer. the members themselves become the real parties in interest and it is for them. D. SEAMEN'S ASSOCIATION OF THE PHILS. releasing him from the burden of worrying for his financial support. 1998) Producers Bank asserts since the employees have retired. 875 defines as any union or association of employees which exist. SOBREVIÑAS [2nd Sem 2011-2012] 11 . however. the status of an employee entitled to the protection of the Labor Code. NO. LEGITIMATE LABOR ORGANIZATION "Legitimate labor organization" means any labor organization duly registered with the Department of Labor and Employment. NOVEMBER 16. In other words. CALLEJA. In ordering therein the “reinstatement” of said employees with “back wages from the date of their dismissal to the date of their reinstatement. The BLR correctly ruled that SAPI. the reinstatement was with back wages for the lay-off period. In the case at bar. when an employee has retired but his benefits under the law or the CBA have not yet been given. to accept or reject individually the fruits of the litigation. The same group registered the organization with the BLR as Seamen's Association of the Philippines (SAPI). AUGUST 4. NO. coupled with the “seniority or other rights and privileges”. 1977) This Court cannot subcribe to the restrictive interpretation made by the court below of the term "labor organization. 1954 and of its dispositive part. insofar as their rights under the Labor Code are concerned. rather than for the union. it is obvious that the resolution intended to restore the employees to their status immediately prior to their dismissal. and are a form of reward for his loyalty. Retirement results from a voluntary agreement between the employer and the employee whereby the latter after reaching a certain age agrees to sever his employment with the former. L-21120. 15. When the retired employees were requesting that their retirement benefits be granted. It must be borne in mind that the retirement scheme was part of the employment package and the benefits to be derived herefrom constituted. 83190. (Section 2(j). vs. It is intended to help the employee enjoy the remaining years of his life. PHILIPPINE AIR LINES. The emphasis of Industrial Peace Act is clearly on the pourposes for which a union or association of employees established rather than that membership therein should be limited only to the employees of a particular employer. a continuing consideration for services rendered. the accumulated sick leave privileges and the transportation allowance during the lay-off period. which made it a legitimate labor organization with rights and privileges granted under the Labor Code.R. the CIR treated said employees as if they had not been absent from work and had been uninterruptedly working during the lay-off period. and not with the SEC." It cannot be overemphasized likewise that labor dispute can exist "regardless of whether the disputants stand in the proximate relation of employer and employee. registered with its office. as it were.a. Rights and privileges at what time? Certainly. E. Hence. affect his employment status especially when it involves all rights and benefits due to him.R.R. and includes any branch or local thereof. for the purpose of prosecuting his claims." The absence of the condition which the court below would attach to the statutory concept of a labor organization. R. one of which is the protection of the labor union. the Union no longer had the personality to file the complaint for them. the former and not the latter association is entitled to the release and custody of union fees with Aboitiz Shipping and other shipping companies with whom it had an existing CBA. CIR AND AIR LINES PILOTS ASSOCIATION OF THE PHILIPPINES (GOMEZ GROUP) (CASTRO: G. NO. whether or not employed by the employer or employeewhom he represents. NLRC AND PRODUCERS BANK EMPLOYEES ASSOCIATION (ROMERO: G. not after their reinstatement. a non-stock corporation. 1967) Insofar as the Christmas bonus. To put it differently. Trite to say. NO. The aforementioned clause must be considered in the light of the entire context of the resolution of July 13. since these must be protected as though there had been no interruption of service. we recognized that while the individual complainants are the real party in interest in issues involving monetary claims and benefits. In Esso Philippines. as a consequence of which no employee-employer relationship exists anymore between it and the employees. in whole or in part. the union. INC. he still retains. is quite evident from the law. is not the same association as CSAI. VS. L-33705 APRIL 15. for the purpose of the collective bargaining or dealing with employers concerning terms and conditions of employment. the legitimate labor union. This contention is untenable. It is the registration of the organization with the BLR. 875). CEBU SEAMEN'S ASSOCIATION. the representations of the Union which may result in prejudice to the interests of any of its individual members in the final judgment being sought to be executed should yield to the individual decisions of the said members themselves. 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 concerning terms and conditions of employment. but. attached to the status of the employees when they were dismissed.” 13.. the PAL’s contention is clearly devoid of merit. FEBRUARY 28. Thus. VS. AIR LINE PILOTS ASSOCIATION OF THE PHILIPPINES (GASTON GROUP) VS. the corporation. the payment of their back wages during the period of their lay-off — thus referring necessarily to a period of time preceding their reinstatement — and the retention of “their seniority or other rights and privileges”.A 875 "representative" is define as including "a legitimate labor organization or any officer or agent of such organization. under Section 2(h) of R. it directed. in itself. they were not pleading for generosity but were merely demanding that their rights. 118069. Inc. NACUA (MEDIALDEA: G. Hence.A. but at the time of their aforementioned dismissal. The very essence of retirement is the termination of the employer-employee relationship.R. and without prejudice to their seniority or other rights and privileges”. PHILIPPINE AIR LINES EMPLOYEES ASSOCIATION AND COURT OF INDUSTRIAL RELATIONS (CONCEPCION: G. (CSAI). as embodied in the CBA. and registered it with the SEC. Inc. 14." which Section 2(e) of R. is not denied its right to sue on behalf of its members: “We see no legal impediments to considering this particular matter of retirement benefits to be within the ambit of Our consistent holding that when it comes to individual benefits accruing to members of a union from a favorable final judgment of any court./DOMINICA C. COMPANY UNION PROF. be recognized. not only their reinstatement.Labor 2 Midterms Reviewer 12.

tenure and conditions of their employment and the arrangement of those terms are thus involved bringing the matter within the purview of a labor dispute. does exist herein is evident. the terms and conditions of employment or a "change" or "arrangement" thereof. and that their default in paying the amortizations for their cars was brought about by their illegal dismissal from work by the petitioner as punishment for their participation in the illegal strike. BASIS OF RIGHT 19. including the giving of financial or other support to it or its organizers or supporters. S. 1987 Constitution Art XIII Sec. organized and unorganized. dispute.R. associations. CONSTITUTION 1987 Constitution Art III Sec. but a civil. for the purpose of negotiating the conditions of employment are also involved. false statement. 87700. therefore. Put differently. in which case the union is divested of the status of a legitimate labor organization. join. Again.S VENTURES INTERNATIONAL V S. SAN MIGUEL CORPORATION EMPLOYEES UNION-PTGWO VS. NLRC. changing or arranging the terms and conditions of employment. dominate. 8 of the Constitution and Art. NO. what the Union seeks is to regularize the status of the employees contracted by Lipercon and D'Rite in effect. 18. the existence of a labor dispute is not negatived by the fact that the plaintiffs and defendants do not stand in the proximate relation of employer and employee. Terms. 875. rather than employee-employer relations. A. SanMig. The Court said that to decertify a union it is not enough to show that the union includes ineligible employees in its membership. local and overseas. NUNEZ. BERSAMIRA AND SAN MIGUEL CORPORATION (MELENCIOHERRERA: G. or. and promote full employment and equality of employment opportunities for all. the Union also seeks to represent those workers. on the one hand. regardless of whether the disputants stand in the proximate relation of employer and employee. Hence. and SanMig's cause's of action in the Court below are inextricably linked with those issues. Unfair labor practices of employers. a labor dispute can nevertheless exist "regardless of whether the disputants stand in the proximate relationship of employer and employee" provided the controversy concerns. be said to exist.R. FEATI UNIVERSITY VS. for the purpose of collective bargaining. VILLENA. 246 of the Labor Code. ARMAS. SOBREVIÑAS [2nd Sem 2011-2012] 12 . the registration may be canceled or the union may be decertified as the bargaining unit. for its part. Neither can it be denied that the controversy below is directly connected with the labor dispute already taken cognizance of by the NCMB-DOLE. as defined by the law. Once registered with the DOLE.R. NO. to form unions. 1991) The respondents alleged that there is a labor dispute between them and Nestle. That a labor dispute. whether or not SanMig's contracts with Lipercon and D'Rite constitute "labor-only" contracting and. shall not be abridged. the matter of representation falls within the scope of a labor dispute.S VENTURES LABOR UNION (2008) The right to form. 1990) While it is SanMig's submission that no employer-employee relationship exists between itself. who have signed up for Union membership. that they be absorbed into the working unit of SanMig. 85197 MARCH 18. they would not have been dismissed from work and they would not have defaulted in the payment of their amortizations. resists that Union demand on the ground that there is no employer-employee relationship between it and those workers and because the demand violates the terms of their CBA. Article 248. a union is considered a legitimate labor organization endowed with the right and privileges granted by law to such organization. and the question of representation. PART 2: WORKER RIGHT TO SELF-ORGANIZATION 1. Section 3 of the Constitution and such right. and as defined by law. 16. Obvious then is that representation and association. This matter definitely dwells on the working relationship between said employees vis-a-vis SanMig. NESTLÉ PHILIPPINES. LABOR DISPUTE "Labor dispute" includes any controversy or matter concerning terms and conditions of employment or the association or representation of persons in negotiating. L-21278. in the alternative. In fact. whether or not the Union can lawfully represent the workers of Lipercon and D'Rite in their demands against SanMig in the light of the existing CBA. among other documents. including those employed in the public and private sectors. or assist a union is specifically protected by Art. – It shall be unlawful for an employer to commit any of the following unfair labor practice: (d) To initiate. INC. F. DECEMBER 27. or societies for purposes not contrary to law shall not be abridged. 17. While a certificate of registration confers a union with legitimacy with the concomitant right to participate in or ask for certification election in a bargaining unit. It must also be shown that there was misrepresentation. is not a labor. the injunction sought by SanMig was precisely also to prevent such representation. PROF. function or administration has been assisted by any act defined as unfair labor practice by this Code. VILLANUEVA. assist or otherwise interfere with the formation or administration of any labor organization. tenure or condition of employment" or "representation. whether or not the notice of strike was valid and the strike itself legal when it was allegedly instigated to compel the employer to hire strangers outside the working unit. such as the adoption or ratification of the constitution and by-laws or amendments thereto and the minutes of ratification of the constitution or by-laws. Further. Paragraph (1) of Article 212 of the Labor Code defines a labor dispute. JUNE 13. among others. Nestlé's demand for payment of the private respondents' amortizations on their car loans. and the contractual workers of Lipercon and D'Rite on the other. — those are issues the resolution of which call for the application of labor laws. NO. III. according to Art. At bottom. It involves debtor-creditor relations. fixing. BAUTISTA AND FEATI UNIVERSITY FACULTY CLUB-PAFLU (ZALDIVAR: G. as contemplated by Republic Act No. Sec. there was a labor dispute between the University and the Faculty Club.Labor 2 Midterms Reviewer "Company union" means any labor organization whose formation." The facts show that the controversy between the University and the Faculty Club involved terms and conditions of employment. in fact. Whether or not the Union demands are valid. If they had not participated in the strike. VS. or fraud in connection with the application for registration and the supporting documents. the return of the cars to the company. KUA AND SOLIDUM (GRIÑO-AQUINO: G. 3 The State shall afford full protection to labor. 8 The right of the people. a regular employer-employee relationship may. XIII. 1966) The test of whether a controversy comes within the definition of "labor dispute" depends on whether the controversy involves or concerns "terms. maintaining.

any employee shall PROF. no distinction shall be made on the basis of the political. Such constitutional guarantees should not be lightly taken much less easily nullified. Whereas it is essential to promote the development of friendly relations between nations. Corollary to this right is the prerogative not to join. Furthermore. B. however. security of tenure and just and humane conditions of work. both among the peoples of Member States themselves and among the peoples of territories under their jurisdiction. 1973 Constitution Art IV Sec. Provided. Right of Supervisory Employees. or educational institutions. rural workers and those without any definite employers may form labor organizations for their mutual aid and protection. Whereas disregard and contempt for human rights have resulted in barbarous acts which have outraged the conscience of mankind. whether operating for profit or not. Art 244 Right of Employees in the Public Service. Provided. self-employed people. Whereas a common understanding of these rights and freedoms is of the greatest importance for the full realization of this pledge. such as race. Ambulant. and the advent of a world in which human beings shall enjoy freedom of speech and belief and freedom from fear and want has been proclaimed as the highest aspiration of the common people. property. to rebellion against tyranny and oppression. as well as foreign organizations are strictly prohibited from engaging directly or indirectly in all forms of trade union activities without prejudice to normal contacts between Philippine labor unions and recognized international labor centers. Article IV of the Philippine Constitution provides that the right to form associations or societies for purposes not contrary to law shall not be abridged. Art 245 Ineligibility of Managerial Employees to Join any Labor Organization. to secure their universal and effective recognition and observance. The State shall promote the principle of shared responsibility between workers and employers and the preferential use of voluntary modes in settling disputes. intermittent and itinerant workers. 7 The right to form associations or societies for purposes not contrary to law shall not be abridged. to become a union member. and a living wage. The State shall regulate the relations between workers and employers. charitable. non-self-governing or under any other limitation of sovereignty. Therefore THE GENERAL ASSEMBLY proclaims THIS UNIVERSAL DECLARATION OF HUMAN RIGHTS as a common standard of achievement for all peoples and all nations. industrial and agricultural enterprises and in religious. The rank and file union and the supervisors’ union operating within the same establishment may join the same federation or national union. including the right to strike in accordance with law. be considered as such. without distinction of any kind. Whereas it is essential. justice and peace in the world. as a rule. 21. political or other opinion. This right is more pronounced in the case of labor. recognizing the right of labor to its just share in the fruits of production and the right of enterprises to reasonable returns on investments and to expansion and growth. Article 2. national or social origin. not only signify the intent to become one. shall have the right to self-organization and to form. as a last resort. or assist labor organizations of their own choosing for purposes of collective bargaining. assist or form separate collective bargaining units and/or legitimate labor organizations of their own. NATIONAL UNION OF BANK EMPLOYEES V MINSTER OF LABOR (1981) Section 7. and shall enforce their mutual compliance therewith to foster industrial peace. 1935 Constitution Art III Sec. that aliens working in the country with valid permits issued by the Department of Labor and Employment. That said aliens are nationals of a country which grants the same or similar rights to Filipino workers. and peaceful concerted activities. Article II specifically declares that the State shall assure the rights of workers to self-organization. trust. Whether employed for a definite period or not. Employees have the right to form. They shall be entitled to security of tenure. keeping this Declaration constantly in mind. Section 9. Employees of government corporations established under the Corporation Code shall have the right to organize and bargain collectively with their respective employers. national and international. language. religion. in co-operation with the United Nations. an employee must. affiliate with or assist a labor union. shall strive by teaching and education to promote respect for these rights and freedoms and by progressive measures. 20. Therefore. Supervisory employees shall not be eligible for membership in the collective bargaining unit of the rank-and-file employees but may join. STATUTORY Art 243. humane conditions of work. but also take some positive steps to realize that intent. UNIVERSAL DECLARATION OF HUMAN RIGHTS PREAMBLE Whereas recognition of the inherent dignity and of the equal and inalienable rights of all members of the human family is the foundation of freedom. including conciliation. All aliens. colour. beginning on his first day of service. Exceptions. A healthy respect for the freedom of association demands that acts imputable to officers or members be not easily visited with capital punishments against the association itself" C. collective bargaining and negotiations. further. whether it be independent. in the dignity and worth of the human person and in the equal rights of men and women and have determined to promote social progress and better standards of life in larger freedom. They shall also participate in policy and decision-making processes affecting their rights and benefits as may be provided by law. 6 The right to form associations or societies for purposes not contrary to law shall not be abridged. collective bargaining. medical. that human rights should be protected by the rule of law. Art 269 Prohibition Against Aliens. Managerial employees are not eligible to join. for purposes of membership in a labor union. UST FACULTY UNION V BITONIO (1999) Self-organization is a fundamental right guaranteed by the Philippine Constitution and the Labor Code.. sex. All other employees in the civil service shall have the right to form associations for purposes not contrary to law. if man is not to be compelled to have recourse. Whereas the peoples of the United Nations have in the Charter reaffirmed their faith in fundamental human rights. join. natural or juridical. SOBREVIÑAS [2nd Sem 2011-2012] 13 . join or assist labor organizations for the purpose of collective bargaining or for their mutual aid and protection. the promotion of universal respect for and observance of human rights and fundamental freedoms.Labor 2 Midterms Reviewer It shall guarantee the rights of all workers to self-organization. assist or form any labor organization. Coverage and Employees Right to Self-Organization. All persons employed in commercial. may exercise the right to self-organization and join or assist labor organizations of their own choosing for purposes of collective bargaining. birth or other status. Now. Whereas Member States have pledged themselves to achieve. to the end that every individual and every organ of society. Everyone is entitled to all the rights and freedoms set forth in this Declaration. jurisdictional or international status of the country or territory to which a person belongs.

and if it can be inferred that the employer adopted the said act to yield adverse effects on the free exercise to right to self-organization or on the right to collective bargaining of the employees. Non-abridgment of right to self-organization. EXTENT AND SCOPE OF RIGHT International Covenant on Civil and Political Rights Article 22 1. 22. Coverage and Employees Right to Self-Organization. the fact that some of respondent PIGLAS union’s members were also members of the old rank and file union. Workers and employers. ULP under Article 248(a) in connection with Article 243 of the Labor Code is committed. Whether employed for a definite period or not. may determine to what extent they would guarantee the economic rights recognized in the present Covenant to non-nationals. 25. self-employed people. is not a ground for cancelling the new union’s registration.CONSTITUTION AND BY- 23. SOBREVIÑAS [2nd Sem 2011-2012] 14 . Nothing in this article shall authorize States Parties to the International Labour Organisation Convention of 1948 concerning Freedom of Association and Protection of the Right to Organize to take legislative measures which would prejudice. subject to the provisions of Article 264 of this Code. The States Parties to the present Covenant undertake to guarantee that the rights enunciated in the present Covenant will be exercised without discrimination of any kind as to race. STANDARD CHARTERED BANK OF EMPLOYEES UNION V CONFESSOR Under the International Labor Organization Convention (ILO) No. join. any employee shall be considered as such. Social and Cultural Rights Article 2 1. industrial and agricultural enterprises and in religious. Such right shall include the right to form. to the maximum of its available resources. Everyone shall have the right to freedom of association with others. Ambulant. REYES V TRAJANO (1992) Guaranteed to all employees or workers is the "right to selforganization and to form. for purposes of membership in a labor union. religion. Article 8 1. charges of this nature should be clearly established by evidence and the surrounding circumstances. Consequently. birth or other status. 87 FREEDOM OF ASSOCIATION AND PROTECTION OF THE RIGHT TO ORGANIZE to which the Philippines is a signatory. or educational institutions. rural workers and those without any definite employers may form labor organizations for their mutual aid and protection. UST FACULTY UNION V BITONIO (IN RELATION TO ARTICLE 277 C OF THE LC) Self-organization is a fundamental right guaranteed by the Philippine Constitution and the Labor Code. charitable. or to apply the law in such a manner as to prejudice. HERITAGE HOTEL V PINAGISANG (2009) The charge that a labor organization committed fraud and misrepresentation in securing its registration is a serious charge and deserves close scrutiny. All persons employed in commercial. colour. shall have the right to self-organization and to form. the HHE union. sex. political or other opinion. the labor union acquires none of the rights accorded to registered organizations. coerce. public order (ordre public). discriminate against or unduly interfere with employees and workers in their exercise of the right to self-organization. join or assist labor organizations for the purpose of collective bargaining or for their mutual aid and protection. No restrictions may be placed on the exercise of this right other than those which are prescribed by law and which are necessary in a democratic society in the interests of national security or public safety. including the right to form and join trade unions for the protection of his interests. whether operating for profit or not. join. without distinction whatsoever. 3. This article shall not prevent the imposition of lawful restrictions on members of the armed forces and of the police in their exercise of this right. intermittent and itinerant workers. Each Member of the International Labour Organization for which this Convention is in force undertakes to take all necessary and appropriate measures to ensure that workers and employers may exercise freely the right to organize. No restrictions may be placed on the exercise of this right other than those prescribed by law and which are necessary in a democratic society in the interests of national security or public order or for the protection of the rights and freedoms of others. 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. the guarantees provided for in that Convention. or assist labor organizations of their PROF. medical. If an employer interferes in the selection of its negotiators or coerces the Union to exclude from its panel of negotiators a representative of the Union. with a view to achieving progressively the full realization of the rights recognized in the present Covenant by all appropriate means. without distinction whatsoever. Art 243. 2. . Each State Party to the present Covenant undertakes to take steps.It shall be unlawful for any person to restrain." Workers’ and employers’ organizations shall have the right to draw up their constitutions and rules. III. Article 11. to job organizations of their own choosing without 42 previous authorization. 2. to elect their representatives in full freedom to organize their administration and activities and to formulate their programs. It is serious because once such charge is proved. shall have the right to establish and. "workers and employers. Developing countries. with due regard to human rights and their national economy. concerned. including particularly the adoption of legislative measures. On the charge of dual unionism. for the promotion and protection of his economic and social interests. beginning on his first day of service. the protection of public health or morals or the protection of the rights and freedoms of others. national or social origin. The right of any person to join an organization also includes the right to leave that organization and join another one. especially economic and technical. to join organizations of their own choosing without previous authorization. Art 246. ILO Convention No. Employees have the right to form.Labor 2 Midterms Reviewer International Covenant on Economic. subject only to the rules of the organization concerned. join. 87 Article 2. The States Parties to the present Covenant undertake to ensure: (a) The right of everyone to form trade unions and join the trade union of his choice. subject only to the rules of the organization concerned. individually and through international assistance and co-operation. shall have the right to establish and. property. or assist labor organizations of their own choosing for purposes of collective bargaining. 3. language. subject only to the rules of the organization 24. II. WORKER QUALIFICATION LAW AND REQUIRED ACTION --.

even if not intended. The State shall afford full protection to labor. by reason of union security agreements. GOVERNMENT CORPORATION EMPLOYEES Art. " (Sec. Employees of government corporations established under the Corporation Code shall have the right to organize and to bargain collectively with their respective employers. 3. The fact that a person has opted to acquire membership in a labor union does not preclude his subsequently opting to renounce such membership. rural workers and those without any definite employers may form labor organizations for their mutual aid and protection. join. It shall guarantee the rights of all workers to self-organization. WORKERS WITH RIGHT OF SELF-ORGANIZATION 1987 Constitution Art III Sec. VS. industrial and agricultural enterprises and in religious. Right of employees in the public service. so also. 1. intermittent and itinerant workers. Ambulant. That is an indictment of the gravest character. 1987 Constitution Art XIII Sec. The fact that they would be paid but not be allowed to work is. (As amended by Executive Order No. aside from being privileged communication protected by the constitutional guarantee on free speech. Articles 243. 26. self-employed people. TRAJANO Article 244 was already amended by BP Blg 70. but to respondent union equally. including the right to strike in accordance with law. The State shall regulate the relations between workers and employers. SUPERVISORS PROF. would be to call into question their undeniable right to choose their leaders. (As amended by Batas Pambansa Bilang 70.Labor 2 Midterms Reviewer own choosing for purposes of collective bargaining. It shall include any individual whose work has ceased as a result of or in connection with any current labor dispute or because of any unfair labor practice if he has not obtained any other substantially equivalent and regular employment. The right to form or join a labor organization necessarily includes the right to refuse or refrain from exercising said right. and shall enforce their mutual compliance therewith to foster industrial peace. medical. including conciliation. Under the Art. the laborers in this particular union would thus be confronted with the sad spectacle of the leaders of their choice condemned as irresponsible. the result. whether operating for profit or not. devoid of any factual basis. All persons employed in commercial. which assures the employees' right "to self-organization and to form. to add to the infamy that would thus attach to them necessarily. May 1. Logically. or societies for purposes not contrary to law shall not be abridged. or be dispossessed of their right to work and of being impeded to pursue a modest means of livelihood. to form unions. December 24. If petitioner were to succeed in their unprecedented demand. charitable. 30. INC. 244. KAPATIRAN SA MEAT AND CANNING DIVISION VS. or educational institutions. 212. They shall also participate in policy and decision-making processes affecting their rights and benefits as may be provided by law. ALL EMPLOYEES Art. affiliate with. possibly even constituting a menace to the operations of the enterprise. and a living wage. or be dismissed from work. The right of the people. 243. Coverage and employees’ right to self-organization. Rep. Their freedom organizations would be rendered nugatory if they could not choose their own leaders to speak on their behalf and to bargain for them. 27. the right NOT to join. The freedom of association also means freedom not to associate. 8. and to disaffiliate or resign from a labor organization. 111. OF LABOR (1981) Luna’s protests could be treated as union activity by the Industrial Peace Act. associations. local and overseas. including those employed in the public and private sectors.. 248 and Omnibus Rules of the LC Rule II Sec. 1. 1980) Art. recognizing the right of labor to its just share in the fruits of production and the right of enterprises to reasonable returns on investments and to expansion and growth. or assist labor organizations of their own choosing for purposes of collective bargaining. NICANOR REYES MEDICAL FOUNDATION. His actuations as such should therefore be considered as legitimate exercise of the employees' right to self-organization and as an activity for their mutual aid and protection. PAN-AMERICAN WORLD AIRWAYS INC V. MEMBERS – RELIGIOUS GROUP 29. A. ELIZALDE WORKERS UNION [RA 3350] was intended to serve the secular purpose of advancing the constitutional right to the free exercise of religion. affiliate with. does not bar the members of that sect from forming their own union. or assist any union. humane conditions of work. They shall be entitled to security of tenure." This is made plain by no less than three provisions of the Labor Code of the Philippines. C. and peaceful concerted activities. 3. unless the Code so explicitly states. is subsumed in the right to join. The term shall not be limited to the employees of a particular employer. Act 875). to repeat. shall have the right to self-organization and to form. B. The State shall promote the principle of shared responsibility between workers and employers and the preferential use of voluntary modes in settling disputes. NON-PROFIT ORGANIZATION 28. It is self-evident that just as no one should be denied the exercise of a right granted by law. organize or join labor unions of their choice for purposes of collective bargaining. Definitions. What is worse. and to maintain membership therein. 244. and promote full employment and equality of employment opportunities for all. organized and unorganized. SOBREVIÑAS [2nd Sem 2011-2012] 15 . PAN-AMERICAN EMPLOYEES ASSOCIATION (1969) There is both a constitutional and statutory recognition that laborers have the right to form unions to take care of their interests vis-a-vis their employers. there is no doubt that rank and file employees of non-profit medical institutions are now permitted to form. collective bargaining and negotiations. UNION OF SUPERVISORS (RB) – NATU V SEC. IV. join or assist labor organizations of their own choosing and to engage in concerted activities for the purpose of collective bargaining and other mutual aid and protection . VICTORIANO VS. which added the phrase “whether operating for profit or not”. FEU-DR. CALLEJA The right of members of the Iglesia ni Kristo sect not to join a labor union for being contrary to their religious beliefs. who must be treated as such with all the respect to which they are legitimately entitled. or assist any union. (f) "Employee" includes any person in the employ of an employer. no one should be compelled to exercise such a conferred right. 1986) D. by averting a situation where certain persons be refused work.. All other employees in the civil service shall have the right to form associations for purposes not contrary to law.

the SC said that they are union officers. the company which is owned by the stockholders and bondholders (capital) and should therefore be entitled under the law to bargain collectively with the top management with respect to their terms and conditions of employment. III. or from any order or memorandum. discharge. E. All aliens. Designations should be reconciled with the actual job description. The job description of the petitioner does not contain the power to lay down policies not to hire. SECURITY GUARDS 37. circumstances enumerated in Sections (a) and (c) of Article 239 of above-quoted Article 239 of the Labor Code. implement and control strategic and operational policies while the task of First-Line Managers is simply to ensure that such policies are carried out by the rank-and-file employees of an organization. 212. they are part and parcel of the continuous process of grievance resolution designed to preserve and maintain peace among the employees and their employer. Book IV of the "Rules to Implement the Labor Code" (Implementing Rules). SOBREVIÑAS [2nd Sem 2011-2012] 16 .” a foreman or supervisor “is an employee within the meaning of the *Industrial Peace Act+. circular or assignments issued by the appropriate authority in the establishment. “managers” are divided into three: top-level managers. further. Nor is the guarantee of organizational right in Art. 6715. UNITED PEPSI COLA VS. assist or form any labor organization. (m) "Managerial employee" is one who is vested with the powers or prerogatives to lay down and execute management policies and/or to hire. Instead. The mere fact that an employee is designated as a “manager” does not make him one. TAGAYTAY HIGHLANDS While Article 245 expressly prohibits supervisory employees from joining a rank-and-file union. That said aliens are nationals of a country which grants the same or similar rights to Filipino workers. Prohibition against aliens. III. suspend. PAPER INDUSTRIES CORPORATION VS. however. 1989) Art.The “managers” per se composed of Top and Middle Managers.Effect of registration. as well as foreign organizations are strictly prohibited from engaging directly or indirectly in all forms of trade union activities without prejudice to normal contacts between Philippine labor unions and recognized international labor centers: Provided. his function includes only efficient planning. It is quite clear that the jurisdiction of shop stewards and the supervisors includes the determination of the issues arising from the interpretation or even implementation of a provision of the CBA. III. 2. may exercise the right to self-organization and join or assist labor organizations of their own choosing for purposes of collective bargaining: Provided. as this ground is restricted to managerial employees.” For this reason. Section 8 infringed by a ban against managerial employees forming a union. 33. NLRC The dismissal of the petitioner in this case is not justified on ground of loss of confidence. SANTA ROSA COCA-COLA PLANT EMPLOYEES UNION VS. and “management functions” translated to directing the activities of Med Reps. LAGUESMA As held in United Pepsi-Cola Supervisory Union vs. 2. Thus. right of supervisory employees. “managerial employees” therefore fall in two (2) categories. In this case. 269. 245. in the interest of the employer. After a certificate of registration is issued to a union. exceptions. LAGUESMA When read in relation to this definition in Art. which section reads: 5.. middle managers. transfer.Labor 2 Midterms Reviewer Art. 32." 35. Definitions. lay-off. Section 8 of the fundamental law. TAGAYTAY HIGHLANDS VS. All employees not falling within any of the above definitions are considered rank-and-file employees for purposes of this Book. and first-line managers. Under this distinction. Laguesma. unless such inclusion is due to misrepresentation. SAMSON VS. Managerial employees are not eligible to join. In fine. Ineligibility of managerial employees to join any labor organization. Republic Act No. and. Supervisory employees shall not be eligible for membership in a labor organization of the rank-and-file employees but may join. petitioners-shop stewards also deserve the penalty of dismissal from their employment. 6715. RIGHT 34. Top and Middle Managers have the authority to devise. it does not provide what would be the effect if a rank-and-file union counts supervisory employees as members. supervisors are entitled to engage in union activities and any discrimination against them by reason thereof constitutes an unfair labor practice. Supervisory employees are those who. March 21. Supervisors and confidential employees. even though they may exercise the prerogatives of management as regards the rank and file employees. it will be seen that Art. SECRETARY OF LABOR PROF. FILOIL SUPERVISORY AND CONFIDENTIAL EMPLOYEES ASSOCIATION It is well settled that “in relation to his employer. natural or juridical. Such legal personality cannot thereafter be subject to collateral attack. or discipline employees. the petitioners-shop stewards participated in the strike. VS. The inclusion in a union of disqualified employees is not among the grounds for cancellation. 1989) 1. TEST 31. ALIENS Art. namely: 1. recall. The labor organization or workers' association shall be deemed registered and vested with legal personality on the date of issuance of its certificate of registration. It may be questioned only in an independent petition for cancellation in accordance with Section 5 of Rule V. INC. (As amended by Section 18. transfer. FILOIL REFINERY CORP. MANILA ELECTRIC CO. VS. As to the shop stewards who contend that they are merely union members and not union officers. like the officers and directors of petitioner Union who joined the strike. assign. false statement or fraud under the F. The right guaranteed in Art. instead of playing the role of "peacemakers" and grievance solvers. COCA-COLA BOTTLERS PHILS. (As amended by Section 29. assign or discipline employees. They occupy positions of trust and laden with awesome responsibilities. Section 8 is subject to the condition that its exercise should be for purposes "not contrary to law. That aliens working in the country with valid permits issued by the Department of Labor and Employment. recall. suspend. the “supervisors” composed of First-Line Managers. effectively recommend such managerial actions if the exercise of such authority is not merely routinary or clerical in nature but requires the use of independent judgment. discharge. 212(m). 245 faithfully carries out the intent of the Constitutional Commission in framing Art. but may be questioned only in an independent petition for cancellation in accordance with these Rules. March 21. 36. assist or form separate labor organizations of their own. Republic Act No. auditing and control. are indeed employees in relation to their employer. lay off. its legal personality cannot be subject to collateral attack.

245 of old Labor Code. or their suggestions and recommendations as to hiring and firing and as to the promotion or any other change of status of other employees are given particular weight. Their primary duty consists of the management of the establishment in which they are employed or of a department or subdivision thereof 2. 39. to act as its representatives. managerial employees are supposed to be on the side of the employer. NOT an exercise of INDEPENDENT JUDGMENT as required by law. Now they may join either the union of the rank and file or of the supervisors. which is in effect RECOMMENDATORY in character. LAGUESMA. (Rationale of previous exclusion: Potential conflict of interest. divided loyalty). In the collective bargaining process. frequently considered is the employee’s necessary access to confidential labor relations information. Test 38. 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. 2. and final decision of the management 41. 330 SCRA 460 (00) As a ground for dismissal. MANAGERIAL AND CONFIDENTIAL EMPLOYEES – 212(M). NLRC. transfer. However. Assist or act in a confidential capacity 2. Confidential relationship must exist between the employee and his supervisor. 82 Art. and the supervisor must handle the prescribed responsibilities relating to labor relations. It is the same reason that impelled this Court to consider the position of confidential employees as included in the disqualification found in Art. The employer is not assured of such protection if these employees themselves are union members. Collective bargaining in such a situation can become one-sided. 277 SCRA 370 (97) Confidential employees: 1. implement and control strategic and operational policies First-Line Managers – ensure that such policies are carried out by the rank-and-file employees Power. field personnel. and FINAL ACTION by department heads and other higher executives of the company. 245 as if the disqualification of confidential employees were written in the provision. and both must be met if an employee is to be considered a confidential employee. SAN MIGUEL CORPORATION SUPERVISORS AND EXEMPT UNION V. and to see to it that its interests are well protected. 245 limits the ineligibility to join. – The provisions of the Title [Title I – Working Conditions and Rest Periods] shall apply to employees in all establishment and undertakings whether for profit or not. suspend. for it is the job description that determines the nature of employment. 552 SCRA 284 (08) While Art. 330 SCRA 295 (00) The mere fact that an employee is designated “manager” does not ipso facto make him one. domestic helpers. SUGBUANON RURAL BANK. and workers who are paid by results as determined by the Secretary of Labor in appropriate regulations. Prohibition and Rationale 43. in the interest of the employer. 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. form and assist any labor organization to managerial employees. As used herein. are likewise privy to sensitive and highly confidential records. review. The two criteria above are cumulative. Although Art. PAPER INDUSTRIES CORP. “managerial employees” refer to those whose primary duty consists of the management of the establishment in which they are employed or of a department or subdivision thereof. recall. and effectuate management policies in the field of labor relations. Persons who formulate. V. form and assist any labor organization to managerial employees. discharge. managerial employees. An important element of the “confidential employee rule” is the employee’s need to use labor relations information. 245 limits the ineligibility to join. All employees not falling within any of the above definitions are considered rank-and-file employees for purposes of this Book. the implementation rules insofar as it disqualifies security employees from joining labor organizations of the rank and file. OF THE PHILIPPINES V. METROLAB INDUSTRIES. 82. depending on their rank. the term “trust and confidence” is restricted to managerial employees. Managerial employees: Top and Middle Managers – have the authority to devise. They have the authority to hire or fire other employees of lower rank. ROLDAN-CONFESSOR. effectively recommend such managerial action if the exercise of such authority is not merely routinary or clerical in nature but requires the use of independent judgment. REVIEW. this privilege is not absolute but subject to limitations imposed by law.Labor 2 Midterms Reviewer As for security employees. V. which was erroneously “carried over” in RA 6715’s IRR) and RA 6715. LAGUESMA. INC. 254 SCRA 182 (96) SC recognizes the exercise of management prerogatives and often declines to interfere with the legitimate business decisions of the employer. are likewise privy to sensitive and highly confidential records. If confidential employees could unionize in order to bargain for 1. and to other officers or members of the managerial staff. Coverage. “Field personnel” shall refer to non-agricultural employees who regularly perform their duties away from the principal place of business or branch office of the employer and whose actual hours of work in the field cannot be determined with reasonable certainty. is SUBJECT TO EVALUATION. assign or discipline employees. lay-off. is null and void. Supervisory employees are those who. WORKERS WITH NO RIGHT OF SELF-ORGANIZATION = COLLECTIVE BARGAINING A. A key question PROF. determine. SOBREVIÑAS [2nd Sem 2011-2012] 17 . persons in the personal service of another. Managerial employee – 3 conditions must concur: 1. STANDARD CHARTERED BANK. 212(m). LAGUESMA. 40. INC. V. They customarily and regularly direct the work of two or more employees therein 3. 42. Designation should be reconciled with the actual job description of the employee. members of the family of the employer who are dependent on him for support. Bank cashiers and HR staff are confidential employees. Art. 324 SCRA 425 (00) NOT managerial employees if they only have recommendatory powers subject to evaluation. SAMSON V. for not being germane to the purposes of EO 111 (annulled the provision from Art. STANDARD CHARTERED BANK EMPLOYEES UNION V. “Managerial employee” is one who is vested with the powers or prerogatives to lay down and execute management policies and/or hire. but not to governmental employees.

1980) Art. self-employed people. certainly such employees are entitled to exercise the rights of all workers to organization. The right to join an organization necessarily includes the equivalent right not to join the same. PROF. Ferrer-Calleja. power to control the worker’s conduct. MACTAN WORKERS UNION V. or unless the acts complained of hinge on a question of interpretation or implementation of ambiguous provisions of an existing collective bargaining agreement. or both such fine and imprisonment at the discretion of the court. VII. PARTY PROTECTED 49. 46. 243. 249. with the latter assuming primacy in the overall consideration. INC. Obviously. PEPSI COLA PRODUCTS V. Since the persons involved are not employees of the company. intermittent and itinerant workers. 248(A). May 1. The raison d’etre of labor unions: it is not to be forgotten that what is entitled to constitutional protection is labor. CENTRAL NEGROS ELECTRIC COOPERATIVE. NON-ABRIDGMENT OF RIGHT – 246. they cannot invoke the right to collective bargaining for “certainly an owner cannot bargain with himself or his co -owners. et al. v. Penalties. charitable. NON-EMPLOYEES – 243 Art. 44. nor to be certified as bargaining agent can be recognized. shall have the right to self-organization and to form. 248. Inc. BENGUET ELECTRIC COOPERATIVE. payment of wages by whatever means 3.000 or imprisonment of not less than 3 months nor more than 3 years. 312 SCRA 104 (99) A confidential employee is one entrusted with confidence on delicate matters. While Art. which disqualifies a member from joining any labor organization within the cooperative. Coverage and Employees’ Right to Self-organization. (As amended by BP 70. industrial and agricultural enterprises and in religious. or educational institutions. Unfailr Labor Practices of Employers (a) To interfere with. the court held that an employee of 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 coowners. they are not entitled to the constitutional right to join or form a labor organization for purposes of collective bargaining. 264 of this Code. 288. 201 SCRA 584 (91) Membership in the cooperative is on a voluntary basis. no right to organize for purposes of bargaining. under the doctrine of necessary implication. handling. 47. – It shall be unlawful for any person to restrain. coerce. V. REPUBLIC PLANTERS BANK GENERAL SERVICES EMPLOYEES UNION – NATU V. Hence. 45 SCRA 577 (72) The benefits of a CBA extend to the laborers and employees in the collective bargaining unit. Ambulant. whether operation for profit or not. or assist labor organizations of their own choosing for purposes of collective bargaining. REPUBLIC V. then they could be governed by their own motives rather than the interest of the employers. Ferrer-Calleja. However. including those who do not belong to the chosen bargaining labor organization. The latter are merely the instrumentalities through which their welfare may be promoted and fostered. CALLEJA. not labor organizations. join. SEC. unionization of confidential employees for the purpose of collective bargaining would mean the extension of the law to persons or individuals who are supposed to act "in the interest of the employers. in so far as it involves cooperatives with employees who are not members or co-owners thereof. ABOITIZ. v. If these managerial employees would belong to or be affiliated with a Union. an owner-member cannot bargain collectively with the cooperative of which he is also the owner because an owner cannot bargain with himself. any violation of the provisions of this Code declared to be unlawful or penal in nature shall be punished with a fine of not less than P1. INC. 180 SCRA 740 (89) As members of the cooperative they are co-owners thereof. negotiations and others as are enshrined in the Constitution and existing laws of the country. medical. or more specifically the working men and women. Moreover. they might jeopardize that interest which they are duty-bound to protect. It represents all the employees in such a bargaining unit. and not involvement in the management thereof. 264 SCRA 637 (96) If the union members are not employees. OF DOLE. 288. or with the custody. Unfair Labor Practices of Labor Organizations (a) To restrain or coerce employees in the exercise of their right to selforganization. when the terms and surrounding circumstances show otherwise. SOBREVIÑAS [2nd Sem 2011-2012] 18 . Such right shall include the right to form. 245 singles out managerial employee as ineligible to join. the latter might not be assured of their loyalty to the Union in view of evident conflict of interests. C. However. subject ot the provisions of Art. SECRETARY OF LABOR. VI. The Union can also become company dominated with the presence of managerial employees in Union membership (same as Metrolab) B. WORKER / MEMBER OF COOPERATIVE 45. – All persons employed in commercial. It is not farfetched that in the course of collective bargaining.) It is the fact of ownership of the cooperative. 1980) 48. 538 SCRA 659 (07) Employer-employee relationship: . rural workers and those without any definite employers may form labor organizations for their mutual aid and protection. discriminate against or unduly interfere with employees and workers in their exercise of the right to self-organization. confidential employees are similarly disqualified. LAGUESMA. (As amended by BP 70. join. 246. May 1.must concur 1.000 nor more than P10. As such. 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 for their mutual aid and protection. Non-abridgment of Right to Self-Organization. The existence of an employer-employee relationship cannot be negated by expressly repudiating it in a contract. or care and protection of the employer's property. selection and engagement of the workers 2. assist or form any labor organization. – Except as otherwise provided in this Code. V.Labor 2 Midterms Reviewer advantages for themselves. Inc. collective bargaining. 249(A). withdrawal therefrom cannot be restricted unnecessarily. 290 Art. The labor union that gets the majority vote as the exclusive bargaining representative does not act for its members alone.” (Cooperative Rural Bank of Davao City. restrain or coerce employees in the exercise of their right to self-organization Art. ASIAPRO COOPERATIVE. In Cooperative Rural Bank of Davao City. a labor organization shall have the right to prescribe its own rules with respect to the acquisition or retention of membership Art. power of dismissal 4.

can accomplish better. – Offenses penalized under this Code and the rules and regulations issued pursuant thereto shall prescribe in 3 years." The emphasis of Industrial Peace Act is clearly on the purposes for which a union or association of employees established rather than that membership therein should be limited only to the employees of a particular employer. therefore. BP 70) Art.” 52. SOBREVIÑAS [2nd Sem 2011-2012] 19 . based on this provision [Article 245. STA LUCIA EAST V SECRETARY OF LABOR Article 212(g) of the Labor Code defines a labor organization as “any union or association of employees which exists in whole or in part for the purpose of collective bargaining or of dealing with employers concerning terms and conditions of employment. Labor organization means ay union or association of employees which exists in whole or in part for the purpose of collective bargaining or of dealing with employers concerning terms and conditions of employment h.A. All unfair labor practice arising from Book V shall be filed with the appropriate agency within 1 year from accrual of such unfair labor practice. Offenses. a labor union exists in whole or in part for the purpose of collective bargaining or of dealing with employers concerning terms and conditions of employment. truly speaking. 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. Under Section 2(h) of R." 54. SAN MIGUEL CORP V SAN MIGUEL A legitimate labor organization is defined as “any labor organization duly registered with the Department of Labor and Employment. or what they may be entitled to under the law. AIRLINE PILOTS ASSOCIATION V CIR PROF. but an investigation of a non-adversary. To promote free trade unionism as an instrument for the enhancement of democracy and the promotion of social justice and development c. free men. shall be under the concurrent jurisdiction of the Municipal or City Courts and the Courts of First Instance. LABOR ORGANIZATION . LABOR ORGANIZATION I. Precisely. Since the will of the members is personified by its board of directors or trustees. a labor organization composed of both rank-and-file and supervisory employees is no labor organization at all.UNIONS 1. fact finding character in which the Court of Industrial Relations plays the part of a disinterested investigator seeking merely to ascertain the desires of employees as to the matter of their representation. Legitimate labor organizations have exclusive rights under the law which cannot be exercised by non-legitimate B. in whole or in part. Definition of Legitimate Labor Organization: Section 2(e) of R. 53. Necessitous men are not. any criminal offense punished in this Code. any alien found guilty shall be summarily deported upon completion of service of sentence. As individual components of a union possessed of a distinct and separate corporate personality. To foster the free and voluntary organization of a strong and united labor movement d. and includes any branch or local thereof. for the purpose of the collective bargaining or dealing with employers concerning terms and conditions of employment. the decisions it makes should accordingly bind them. will submit to any terms that the crafty may impose upon them. (As amended by Sec. Any applicant labor organization shall acquire legal personality and shall be entitled to the rights and privileges granted by law to legitimate labor organizations upon issuance of the certificate of registration. Union members’ individual acceptance of the award and the resulting payments made by company does not operate as a ratification of the DOLE Secretary’s award. whether or not employed by the employer or employee whom he represents. respondent’s members should realize that in joining the organization. DUNLOP V SEC OF LABOR "Clearly. 3.Labor 2 Midterms Reviewer In addition to such penalty. through persuasive and coercive power gained as a group. they submit to the will of the majority of the members in order that they may derive the advantages to be gained from the concerted action of all. LABOR ORGANIZATION IN GENERAL A. an organization which carries a mixture of rank-and-file and supervisory employees cannot possess any of the rights of a legitimate labor organization. Legitimate labor organization means any labor organization duly registered with the DOLE and includes any branch or local thereof. PART THREE. 875 defines "labor organization" as any union or association of employees which exist. they shall be forever barred. but to answer a present emergency. Registration requirements are intended to afford a measure of protection to unsuspecting employees who may be lured into joining unscrupulous or fly-by-night unions whose sole purpose is to control union funds or use the labor organization for illegitimate ends. It cannot. Not being one. the Regional Office or Bureau shall issue in favor of the applicant labor organization a certificate indicating that it is included in the roster of legitimate labor organization. UST V SAMAHANG MANGGAGAWA Acceptance of award or benefit by individual members is not a waiver of the union’s claim. It becomes necessary. otherwise. and are involved in activities directly affecting matters of public interest. Labor Code]. 51. the labor organization. To promote enlightenment of employees concerning their rights and obligations as union members and as employees Certification proceeding is not a litigation.A 875 "representative" is define as including "a legitimate labor organization or any officer or agent of such organization." It cannot be overemphasized likewise that labor dispute can exist "regardless of whether the disputants stand in the proximate relation of employer and employee. anterior to the granting of an order allowing a certification election. they have surrendered a portion of their individual freedom for the benefit of all the other members. POLICY – ART 211 Declaration of Policy b. 50. 290.” The mandate of the Labor Code is to ensure strict compliance with the requirements on registration because a legitimate labor organization is entitled to specific rights under the Labor Code. Any provision of the law to the contrary notwithstanding. nor a waiver of their right to receive further benefits.” Upon compliance with all the documentary requirements. What the individual employee may not do alone. for any guise or purpose. as for example obtain more favorable terms and conditions of work. be a legitimate labor organization. DEFINITIONS ART 212 Definitions g. including the right to file a petition for certification election for the purpose of collective bargaining.

234-A. their addresses. Section 1 (j). Book V of the Implementing Rules requires that the application should be signed by at least twenty percent (20%) of the employees in the appropriate bargaining unit and be accompanied by a sworn statement of the applicant union that there is no certified bargaining agent or. of its annual financial reports. UNION FUNCTION AND RATIONALE 59.00) registration fee. or as a means to subvert valid commitments. that the application is filed during the last sixty (60) days of the agreement. (c) The names of all its members comprising at least twenty 20% percent of all the employees in the bargaining unit where it seek to operate. LEGITIMATE LABOR ORGANIZATION 55.A federation. The acquisition of rights by any union or labor organization. the minutes of its adoption or ratification and the list of the members who participated in it. one of which is the right to be certified as the exclusive representative of all the employees in an appropriate collective bargaining unit for purposes of collective bargaining. In addition. The latter is merely a condition sine qua non for the acquisition of legal personality by labor unions and the possessions of rights and privileges granted by law. the minutes of the organizational meeting and the list of the workers who participated in such meetings. The constitution does not guarantee these rights and privileges. including the giving of financial or other support to it or its organizers or supporters 4. local or affiliate thereof. COMPANY UNION ART 212 Definitions i. Said freedoms may still be exercised with or without registration. assist or otherwise interfere with the formation or administration of labor organization. o All requisite documents and papers shall be certified under oath by the secretary or the treasurer of the organization. REQUIREMENTS AND RATIONALE – 234. STA LUCIA EAST V SECRETARY OF LABOR (SUPRA) 56. 60. Company union means any labor organization whose formation. PHILIPPINE ASSOCIATION OF FREE LABOR UNIONS V. much less legal personality. SECRETARY OF LABOR. (ccc) Worker’s association refers to an association of workers organized for the mutual aid and protection of its members or for any legitimate purpose other than collective bargaining. Under Article 234 (Requirements of Registration): o Any applicant labor organization. Rule 1. through concerted effort and activity. (d) If the applicant has been in existence for one or more years. And under Article 235 (Action on Application) o The Bureau shall act on all applications for registration within thirty (30) days from filing. it continues as such until its certificate of registration is cancelled or revoked in an independent action for cancellation." Rule I. which are mere statutory creations. That is why it is given personality and recognition in concluding collective bargaining agreements. C. Requirements of registration. national union or industry or trade union center or an independent union shall acquire legal personality and shall be entitled to the rights and privileges granted by law to legitimate labor organizations upon issuance of the certificate of registration based on the following requirements: (a) Fifty pesos (P50. the principal address of the labor organization. 58. particularly the right to file a petition for certification election. the minutes of the organizational meetings and the list of the workers who participated in such meetings. Section 4 of Rule II. COASTAL SUBIC V DOLE Once a labor union attains the status of a legitimate labor organization. But if it is made use of as a subterfuge. copies. . the legal personality of a labor organization cannot be collaterally attacked. 2. (b) The names of its officers. and (e) Four copies of the constitution and by-laws of the applicant union. for it tends to undermine the harmonious relations between management and labor. function or administration has been assisted by any act defined as unfair labor practice by this code. A labor organization acquires legitimacy only upon registration with the BLR. the principal address of the labor organization. CEBU SEAMAN’S ASSOC V FERRER-CALLEJA It is the registration of the organization with the BLR and not with the SEC which made it a legitimate labor organization with rights and privileges granted under the Labor Code. dominate. To initiate. GUIJARNO V CIR The function of a labor union is to assure that Constitution’s fundamental objectives for labor would be achieved. and attested to by its president. as the case may be. UNITED SEAMAN’S UNION OF THE PHILS V DAVAO SHIPOWNERS A labor organization is wholesome if it serves its legitimate purpose of promoting the interests of labor without unnecessary labor disputes.00) registration fee. first and foremost. Book V of the Implementing Rules likewise defines a legitimate labor organization as "any labor organization duly registered with the DOLE and includes any branch. PROF. 57. 2. their addresses. ART 248 Unfair labor practices of employers d. where there is an existing collective bargaining agreement duly submitted to the DOLE. 27 SCRA 40 (69) The requirement of registration does NOT curtail the freedoms of assembly and association. It is the instrumentality through which an individual laborer who is helpless as against a powerful employer may. WORKERS ASSOCIATION Implementing Rules Book 5. SOBREVIÑAS [2nd Sem 2011-2012] 20 .Labor 2 Midterms Reviewer unions. it defeats its own purpose. (b) The names of its officers. 237 Article 234. 3. achieve the goal of economic well-being 61. PROGRESSIVE DEVT CORP V SECRETARY OF LABOR Article 212(h) defines a legitimate labor organization as "any labor organization duly registered with the DOLE and includes any branch or local thereof. association or group of unions or workers shall acquire legal personality and shall be entitled to the rights and privileges granted by law to legitimate labor organizations upon issuance of the certificate of registration based on the following requirements: (a) Fifty-pesos (P50. depends on whether or not the labor organization has attained the status of a legitimate labor organization.

if the applicant for registration is a federation or a national union. MANDAUE. If the union's application is infected by falsification and like serious irregularities. 1981 and Section 1. the Bureau is not mandated to accept just any purported charter certificate matter how spurious it is in appearance. S.S. V. supporting the registration of such applicant federation or national union. it becomes mandatory for the BLR to check if the requirements under Art. It is evident based on this rule that the local/chapter acquires legal personality from the date of the filing of the complete documentary requirements. Article 237. no such period of evaluation is provided in Department Order No. ILO Convention No. ETC. In contrast. under it such local/chapter is deemed to acquire legal personality “from the date of filing” of the documents enumerated under Section 1. The States Parties to the present Covenant undertake to ensure: (b) The right of trade unions to establish national federations or confederations and the right of the latter to form or join international tradeunion organizations. each of which must be a duly recognized collective bargaining agent in the establishment or industry in which it operates. 467 SCRA 107 (05) The rule applicable to the case is Department Order No. and the principal office of the chapter. (As amended by Batas Pambansa Bilang 130. the names of all its members comprising at least twenty percent (20%) of all the employees in the bargaining unit where it seeks to operate. a union should be denied recognition as a legitimate labor organization. in addition to the requirements of the preceding Articles. 48.Labor 2 Midterms Reviewer (c) In case the applicant is an independent union. in ascertaining whether or not to recognize and register the local/chapter. 9481 which lapsed into law on May 25. 2007 and became effective on June 14. Article 234-A. August 21. especially those appearing on the face of the application and its attachments. provided that where the local/chapter's constitution and by-laws is the same as that of the federation or national union. (As inserted by Section 2. their addresses. Republic Act No. and (b) The names and addresses of the companies where the locals or chapters operate and the list of all the members in each company involved. the Regional Office or Bureau shall issue in favor of the local/chapter a certificate indicating that it is included in the roster of legitimate labor organizations. while respondent declared that it should only be 455. VENTURES. complied with. 8. 2007 and became effective on June 14. For example. On the other hand. Chartering and creation of a local chapter. the Bureau or Regional Office should not look 62. and the list of the members who participated in it. Additional requirements for federations or national unions. 63. V SEC. The chapter shall be entitled to all other rights and privileges of a legitimate labor organization only upon the submission of the following documents in addition to its charter certificate: (a) The names of the chapter’s officers. deny recognition to the local/chapter. this fact shall be indicated accordingly. Upon compliance with all the documentary requirements. – A local/chapter constituted in accordance with Section 1 of this Rule shall acquire legal personality from the date of filing of the complete documents enumerated therein. All the foregoing supporting requirements shall be certified under oath by the Secretary or Treasurer of the local/chapter and attested by its President. 2007). and more importantly. 1. it still cannot be denied that the latter would have more than complied with the registration requirement. 64. However. DOLE. International Covenant on Economic. 2007). Even if the total number of rankand-file employees of petitioner is 528. Notwithstanding the amendments. 608 SCRA 706 (09) The alleged failure of respondent to indicate with mathematical precision the total number of employees in the bargaining unit is of no moment. copies of its annual financial reports.A duly registered federation or national union may directly create a local chapter by issuing a charter certificate indicating the establishment of the local chapter. 9. The additional supporting requirements shall be certified under oath by the secretary or treasurer of the chapter and attested by its president. insofar as the Bureau is obliged to adjudge the authenticity of the documents required to be submitted. which takes place only after the Bureau of Labor Relations or its Regional Offices has undertaken an evaluation process lasting up until thirty (30) days. a labor organization is deemed to have acquired legal personality only on the date of issuance of its certificate of registration. 7-8 ICESCR Art. and (e) Four copies of the constitution and by-laws of the applicant union. Chartering and creation of a local chapter — A duly registered federation or national union may directly create a local/chapter by submitting to the Regional Office or to the Bureau two (2) copies of the following: a) A charter certificate issued by the federation or national union indicating the creation or establishment of the local/chapter. It further provides when the local/chapter acquires legal personality: Section 3. ETC. Book V. this fact shall be indicated accordingly. especially as it was able to comply with the 20% minimum membership requirement. it shall. Acquisition of legal personality by local chapter. 8 (b) (c). Subject to Article 238. 9481 which lapsed into law on May 25. minutes of its adoption or ratification. It is empowered to ascertain whether the submitted charter certificate is genuine. Arts. it still is good policy to maintain that per Department Order No. the duty of the Bureau of Labor Relations to recognize the local/chapter upon the submission of the documentary requirements is not ministerial.S. SAN MIGUEL CORPORATION V. (c) The right of trade unions to function freely subject to no limitations other than those prescribed by law and which are necessary in a democratic society in the interests of national security or public order or for the protection of the rights and freedoms of others. 234 of the Labor Code have been sedulously PROF. The chapter shall acquire legal personality only for purposes of filing a petition for certification election from the date it was issued a charter certificate. and the principal office of the local/chapter. 559 SCRA 425 (08) The registration or the recognition of a labor union after it has submitted the corresponding papers is not ministerial on the part of the BLR. After a labor organization has filed the necessary registration documents. VENTURES. their addresses. and not from the issuance of a certification to such effect by the Regional Office or Bureau. . 9 for the application of a local/chapter. and (b) The chapter’s constitution and by-laws: Provided. Republic Act No. within which period it approves or denies the application. (c) The local/chapter's constitution and by-laws. Rule VI. (b) The names of the local/chapter's officers. submit the following: (a) Proof of the affiliation of at least ten (10) locals or chapters. 9 which states: Section 1. Social and Cultural Rights – Art. That where the chapter’s constitution and by-laws are the same as that of the federation or the national union. and if finding that said certificate is fake. S. SOBREVIÑAS [2nd Sem 2011-2012] 21 . MARIWASA ETC. (d) If the applicant union has been in existence for one or more years.

However. 65. there was no mention of a trade union center as being among the labor organizations allowed to charter. Mere affiliation does not divest the local union of its own personality. and attested to by its president. DOLE. V. Under Article 235 (Action on Application): "The Bureau shall act on all applications for registration within thirty (30) days from filing. ETC. Hence. Section 3. much less said personality. section 4 of Rule II. it did not yet possess any legal personality. since the requisites for acquisition of legal personality under Section 3. 205 SCRA 802 (92) Ordinarily. which initiates the creation of the local/chapter. It is a separate and distinct voluntary association owing its creation to the will of its members. still makes no mention of a "trade union center. PROF. Rationale: The registration prescribed in is not a limitation to the right of assembly or association. which may be exercised with or without said registration. is a reasonable regulation for the benefit of the members of the organization. the obligation to submit financial statements. and the books of accounts all of which are certified under oath by the secretary or treasurer.. the local or chapter does not become a legitimate labor organization. although not truly accredited agents of the union the purport to represent. A local union does not owe its existence to the federation with which it is affiliated. including the right to seek certification as the sole and exclusive bargaining agent in the appropriate employer unit. It is the submission of these documents. the legal personality of a labor organization cannot be collaterally attacked. The latter is merely a condition sine qua non for the acquisition of legal personality by labor organizations. in the absence of any independent action for cancellation of registration against either APSOTEU or ALU. local unions are considered principals while the federation is deemed to be merely their agent. Book V of the Implementing Rules requires that the application should be signed by at 20% of the employees in the appropriate bargaining unit and be accompanied by a sworn statement of the applicant union that there is no certified bargaining agent or. already in possession of legal personality. In doing so. local or chapter of a federation. V. In regular order. Rule VI of Department Order No. PROGRESSIVE DEVELOPMENT CORPORATION V. Article 234 now includes the term trade union center. and unless and until their registrations are cancelled. ETC. the unions are entitled to exercise the rights and privileges of a legitimate labor organization. 507 SCRA 300 (06) A chartered local union acquires legal personality through the charter certificate issued by a duly registered federation or national union. for the possession and exercise of which registration is required to protect both labor and the public against abuses. and attested to by its president. especially if doing so affirms the constitutionally guaranteed right to self-organization. fraud. A local or chapter therefore becomes a legitimate labor organization only upon submission of the following to the BLR: 1) A charter certificate. Book V of the Implementing Rules. 67. labor laws are generally construed liberally in favor of labor. huge amounts of money due to them or to the organization. as the case may be. SAN MIGUEL CORPORATION. which are mere statutory creations. Furthermore. a labor organization acquires legitimacy only upon registration with the BLR. associations and unions of workers are engaged affect public interest." Even in the most recent amendment of the implementing rules. as a condition for the non-cancellation of a certificate of registration. and reported to the Regional Office in accordance with the rules implementing the Labor Code. Absent compliance with these mandatory requirements. constitution and by-laws to the Regional Office or Bureau. each continues to possess a separate legal personality. namely Article 234-A. Such requirement is a valid exercise of the police power. 66. which is then free to file on its own a petition for certification election. certified under oath by the Secretary or Treasurer of the local/chapter and attested by the President. Rationale: The intent of the law in imposing lesser requirements in the case of a branch or local of a registered federation or national union is to encourage the affiliation of a local union with a federation or national union in order to increase the local union's bargaining powers respecting terms and conditions of labor. but interestingly. In addition. some of the aforementioned requirements for registration are no longer required. within 30 days from its issuance by the labor federation or national union. All requisite documents and papers shall be certified under oath by the secretary or the treasurer of the organization. or impostors who pose as organizers. because the activities in which labor organizations. It could be properly said that at the exact moment respondent was filing the petition for certification. along with the names of the local/chapter’s officers. which should be protected." The Constitution does not guarantee these rights and privileges. 533 SCRA 125 (07) We find no legal justification to support the conclusion that a trade union center is allowed to directly create a local or chapter through chartering. Once a labor union attains the status of a legitimate labor organization. Hence. considering that the same generally solicits funds or membership. it continues as such until its certificate of registration is cancelled or revoked in an independent action for cancellation. it is the federation or national union. It only gives rise to a contract of agency. and 2) The constitution and by-laws. It then submits this charter certificate. on behalf of its members. LAGUESMA. SOBREVIÑAS [2nd Sem 2011-2012] 22 . 9 had not yet been complied with. the provision indicating the procedure for chartering or creating a local or chapter. a statement on the set of officers." Moreover. of such local or chapter. where the former acts in representation of the latter. which vests legal personality in the local/chapter. The provisions governing union affiliation are found in Rule II. as the case may be. Yet there are peculiar circumstances in this case that allow the Court to rule that respondent acquired the requisite legal personality at the same time it filed the petition for certification election. upon submission of the requirements as enumerated in Article 234. associations or unions and the possession of the "rights and privileges granted by law to legitimate labor organizations. neither does it give the mother federation the license to act independently of the local union. It issues a charter certificate indicating the creation or establishment of the local/chapter. where there is an existing collective agreement duly submitted to the DOLE. that the application is filed during the last sixty (60) days of the agreement. But when an unregistered union becomes a branch. SAN MIGUEL. As such principals. as well as oftentimes collects. the Court acknowledges that the strict letter of the procedural rule was not complied with.Labor 2 Midterms Reviewer beyond the authenticity and due execution of the documentary requirements for the creation of the local/chapter. COASTAL SUBIC ETC.

The employees' withdrawal from a labor union made before the filing of the petition for certification election is presumed voluntary. It must also be shown that there was misrepresentation. PHOENIX IRON AND STEEL CORPORATION V. set of officers and books of accounts submitted by the local and chapter must likewise comply with these requirements. this Court is not a trier of facts. VENTURES. among other documents.S. After a labor organization has filed the necessary registration documents. Absent compliance with these mandatory requirements. but may be questioned only in an independent petition for cancellation in accordance with these Rules. which we again quote as follows: "(c) The local or chapter of a labor federation or national union shall have and maintain a constitution and by-laws. Book V of the Implementing Rules: Sec. the procedure governing the reporting of independently registered unions. of such local or chapter. Not only is the issuance of any false statement and misrepresentation a ground for cancellation of registration (see Article 239 (a). The records of the case are devoid of such evidence. S. the registration may be canceled or the union may be decertified as the bargaining unit. or fraud in connection with the application for registration and the supporting documents. Allegations thereof should be compounded with supporting circumstances and evidence. especial those appearing on the face of the application and its attachments. federations or national unions shall be observed. it is also a ground for a criminal charge of perjury. its legal personality cannot be subject to collateral attack.00 registration fee) becomes the Bureau's basis for approval of the application for registration. within 30 days from its issuance by the labor federation or national union. It may be questioned only in an independent petition for cancellation in accordance with Section 5 of Rule V.Labor 2 Midterms Reviewer In the case at bar. While a certificate of registration confers a union with legitimacy with the concomitant right to participate in or ask for certification election in a bargaining unit. 533 SCRA 125 (07) The Implementing Rules stipulate that a labor organization shall be deemed registered and vested with legal personality on the date of issuance of its certificate of registration. a union should be denied recognition as a legitimate labor organization. proceedings before the National Labor Relations Commission are not covered by the technical rules of evidence and procedure. and attested to by the president is apparent. 234 of the Labor Code. said that to decertify a union. as the case may be. V. while withdrawal after the filing of such petition is considered to be involuntary and does not affect the same. They likewise afford a measure of protection to unsuspecting employees who may be lured into joining unscrupulous or fly-by-night unions whose sole purpose is to control union funds or to use the union for dubious ends. QUESTION OF LEGITIMACY 69. VENTURES. V. the rationale for requiring that the submitted documents and papers be certified under oath by the secretary or treasurer.Effect of registration. SECRETARY OF LABOR. In the case of union affiliation with a federation (as in this case). SAN MIGUEL. in which case the union is divested of the status of a legitimate labor organization. false statement. A direct challenge to the legitimacy of a labor organization based on fraud and misrepresentation in securing its certificate of registration is a serious allegation which deserves careful scrutiny. 70. Once a certificate of registration is issued to a union. as provided in Art. the documentary requirements are found in Rule II. The inclusion of the certification and attestation requirements will in a marked degree allay the apprehensions of the employer. such as fraud and misrepresentation in connection with the adoption or ratification of the union's constitution and like documents. Furthermore. FURUSAWA V. 559 SCRA 425 (08) Once registered with the DOLE. S. 239 (a) 16 of the Labor Code. and 2) The constitution and by-laws. ETC. In the case of union registration. Among the grounds for cancellation is the commission of any of the acts enumerated in Art. Book V of the Implementing Rules. 221. but an investigation of a fact-finding and nonadversarial character. The labor organization or workers' association shall be deemed registered and vested with legal personality on the date of issuance of its certificate of registration.” Since the "procedure governing the reporting of independently registered unions" refers to the certification and attestation requirements contained in Article 235. paragraph 2. 71. It is not covered by the technical rules of evidence. SAN MIGUEL CORPORATION. Findings of PROF. such as the adoption or ratification of the constitution and by-laws or amendments thereto and the minutes of ratification of the constitution or by-laws. has in previous cases. The submission of the required documents (and payment of P50. and this doctrine applies with greater force in labor cases. 3. 244 SCRA 173 (95) A local or chapter becomes a legitimate labor organization only upon submission of the following to the BLR: 1) A charter certificate. The Court. (c) and (d)). it follows that the constitution and by-laws. as the case may be. The certification and attestation requirements are preventive measures against the commission of fraud. Thus. and the books of accounts all of which are certified under oath by the secretary or treasurer. If the union's application is infected by falsification and like serious irregularities. SOBREVIÑAS [2nd Sem 2011-2012] 23 . 68. it becomes mandatory for the BLR to check if the requirements under Art. ETC. The issuance of the certificate of registration evidently shows that FEU-IND has complied with the requirements of Art. SECRETARY OF LABOR. ETC. a union is considered a legitimate labor organization endowed with the right and privileges granted by law to such organization. The same rationale for requiring the submission of duly subscribed documents upon union registration exists in the case of union affiliation.S. Such legal personality cannot thereafter be subject to collateral attack. the local or chapter does not become a legitimate labor organization. 5. set of officers and books of accounts. 282 SCRA 635 (97) The presentation of the xerox copy of the certificate of registration to support its claim of being a duly registered labor organization instead of the submission of the original certificate is not a fatal defect to the organization conferred by its registration with DOLE. a statement on the set of officers. Section 3 (e). and attested to by its president. The issuance to the Union of Certificate of necessarily implies that its application for registration and the supporting documents thereof are prima facie free from any vitiating irregularities. the failure of the secretary of PDEU-Kilusan to certify the required documents under oath is fatal to its acquisition of a legitimate status. A certification proceeding is not a litigation in the sense that the term is ordinarily understood. it is not enough to show that the union includes ineligible employees in its membership. 234 of the Labor Code have been sedulously complied with. ETC. For reporting purposes.

255 declares. Such legal personality is acquired from the filing of the complete documentary requirements enumerated in Section 1. To sue and be sued in its registered name. certified under oath by the Secretary or Treasurer of the local/chapter and attested by the President. 6715. Rule VI. Failure to comply with the above requirements shall not be a ground for cancellation of union registration but shall subject the erring officers or members to suspension. 395 SCRA 103 (03) PROF.The following are documents required to be submitted to the Bureau by the legitimate labor organization concerned: (a) Its constitution and by-laws. Rights of legitimate labor organizations. directly and exclusively used for their lawful purposes. 72. with its annual audited financial statements. (b) Its list of officers. gifts. the minutes of ratification. To veer away from such goal would be contrary. are generally accorded not only great respect but even finality. and (d) Its list of members at least once a year or whenever required by the Bureau. Book IV of the "Rules to Implement the Labor Code" (Implementing Rules) which section reads: Sec. To be certified as the exclusive representative of all the employees in an appropriate bargaining unit for purposes of collective bargaining. 242. 3. The Union’s reliance on Art. . it is the federation or national union. 73. INC. 5. local or foreign. especially if doing so affirms the constitutionally guaranteed right to self-organization. including grants. already in possession of legal personality. welfare and other projects not contrary to law. To own property. which initiates the creation of the local/chapter. 4. To be furnished by the employer. It may be questioned only in an independent petition for cancellation in accordance with Section 5 of Rule V. TAGAYTAY HIGHLANDS INTERNATIONAL GOLF CLUB. upon written request. The inclusion in a union of disqualified employees is not among the grounds for cancellation. SAN MIGUEL CORPORATION V. constitution and by-laws to the Regional Office or Bureau. housing. such as the BLR. which are actually. for the use and benefit of the labor organization and its members. Republic Act No. expulsion from membership. (c) Its annual financial report within thirty (30) days after the close of every fiscal year. Reportorial requirements. minutes of the election of officers. 2007). However. It then submits this charter certificate. only the labor organization designated or selected by the majority of the employees in an appropriate collective bargaining unit is the exclusive representative of the employees in such unit for the purpose of collective bargaining. Admittedly. 1989) Article 242-A. TAGAYTAY HIGHLANDS EMPLOYEES UNION. It issues a charter certificate indicating the creation or establishment of the local/chapter. MANDAUE. 2007 and became effective on June 14. March 21. labor laws are generally construed liberally in favor of labor. 467 SCRA 107 (05) It is thus very clear that the issuance of the certificate of registration by the Bureau or Regional Office is not the operative act that vests legal personality upon a local/chapter under Department Order No. including cooperative. RIGHTS OF LEGITIMATE LABOR ORGANIZATION – 242. A legitimate labor organization shall have the right: 1." The philosophy is to avoid fragmentation of the bargaining unit so as to strengthen the employees’ bargaining power with the management. donations and contributions they may receive from fraternal and similar organizations. SOBREVIÑAS [2nd Sem 2011-2012] 24 . should be considered to have already acquired juridical personality which may not be assailed collaterally. INC. and 6. Art. The labor organization or workers' association shall be deemed registered and vested with legal personality on the date of issuance of its certificate of registration. MANILA DIAMOND HOTEL EMPLOYEES ASSOCIATION. (As amended by Section 17. 395 SCRA 699 (03) After a certificate of registration is issued to a union. or amendments thereto. unless such inclusion is due to misrepresentation. and the list of members who took part in the ratification of the constitution and by-laws within thirty (30) days from adoption or ratification of the constitution and by-lam or amendments thereto. the manner by which respondent was deemed to have acquired legal personality by the DOLE and the Court of Appeals was not in strict conformity with the provisions of Department Order No. INTERNATIONAL CONTAINER SERVICES. including the balance sheet and the profit and loss statement. It bears noting that the goal of the DOLE is geered towards "a single employer wide unit which is more to the broader and greater benefit of the employees working force. within thirty (30) calendar days from the date of receipt of the request. inimical and repugnant to the objectives of a strong and dynamic unionism. Such legal personality cannot thereafter be subject to collateral attack. RA 9481 which lapsed into law on May 25. which is then free to file on its own a petition for certification election. Notwithstanding any provision of a general or special law to the contrary. 242 (a) must be read in relation to Article 255. its legal personality cannot be subject to collateral attack. or within sixty (60) calendar days before the expiration of the existing collective bargaining agreement. The Court acknowledges that the strict letter of the procedural rule was not complied with. 2. 9. 9. 4. To undertake all other activities designed to benefit the organization and its members. 494 SCRA 195 (06) As Art. after the union has been duly recognized by the employer or certified as the sole and exclusive bargaining representative of the employees in the bargaining unit. or during the collective bargaining negotiation. having been validly issued a certificate of registration. endowments. To act as the representative of its members for the purpose of collective bargaining. PHILIPPINE DIAMOND HOTEL V. along with the names of the local/chapter's officers. 242 (a) [A legitimate labor organization shall have the right to act as representative of its members for the purpose of collective bargaining] is misplaced for not every legitimate labor organization possesses the rights mentioned therein. but may be questioned only in an independent petition for cancellation in accordance with these Rules. The exemptions provided herein may be withdrawn only by a special law expressly repealing this provision. The union. V. shall be free from taxes. 75. the income and the properties of legitimate labor organizations. which have acquired expertise because their jurisdiction is confined to specific matters. real or personal. false statement or fraud under the circumstances enumerated in Sections (a) and (c) of Article 239 of the Labor Code. ACEDERA V. 74. Yet there are peculiar circumstances in this case that allow the Court to rule that respondent acquired the requisite legal personality at the same time it filed the petition for certification election. 5. In regular order. duties and other assessments.Labor 2 Midterms Reviewer fact of administrative agencies and quasi-judicial bodies. 242-A Art. (As inserted by Section 7. or any appropriate penalty. which vests legal personality in the local/chapter. Effectof registration. and list of voters within thirty (30) days from election. It is the submission of these documents.

and continues to be recognized as such until its certificate of registration is successfully impugned and thereafter cancelled or revoked in an independent action for cancellation. Books of account are kept and handled by bookkeepers (employees) of the company or agency. The Union’s reliance on Art." The philosophy is to avoid fragmentation of the bargaining unit so as to strengthen the employees’ bargaining power with the management.. ordinarily. Corollarily. SECRETARY OF DOLE. would have had no real opportunity to levy and collect dues and fees from its members which need to be recorded in the books of account. 242 SCRA 99 (95) Although the federation with which the Union is affiliated submitted documents purporting to show that the latter had offered books of account to support its (the Union's) application for registration as a legitimate labor organization. No. In generally accepted accounting practice. SOBREVIÑAS [2nd Sem 2011-2012] 25 . 6715 (1989) — it is that only a legitimate labor organization may exercise the right to be certified as the exclusive representative of all the employees in an appropriate collective bargaining unit for purposes of collective bargaining. SAN MIGUEL CORPORATION. it continues to be recognized as such until its certificate of registration is cancelled or revoked in an independent action for cancellation. INC. a person whose interests are already represented will not be permitted to do the same except when there is a suggestion of fraud or collusion or that the representative will not act in good faith for the protection of all interests represented by him. PDMP is granted all the rights and privileges appurtenant to a legitimate labor organization.. only the labor organization designated or selected by the majority of the employees in an appropriate collective bargaining unit is the exclusive representative of the employees in such unit for the purpose of collective bargaining. A union must comply with all the requirements of registration as a legitimate labor organization before it may enjoy the fruits of its certification election victory and before it may exercise the rights of a legitimate labor organization. That APCWU acted in a representative capacity "for and in behalf of its Union members and other employees similarly situated. It bears to emphasize that what is being directly challenged is the personality of respondent as a legitimate labor organization and not that of PDMP. SAN MIGUEL ETC." a generous description considering the sheet of paper in fact submitted by the Union. 359 SCRA 386 (08) If there is one constant precept in our labor laws — be it Commonwealth Act No. No. Statements of accounts or financial reports. This authority includes the power to represent its members for the purpose of enforcing the provisions of the CBA. V. NLRC. 37P. PHILIPPINE DIAMOND HOTEL AND RESORT. 442 (1974). prepared by external independent auditors (certified public accountants). such as a union. ledgers and other accounting books (which are registered with the Bureau of Internal Revenue) containing a record of individual transactions wherein monies are received and disbursed by an establishment or entity." the title of the case filed by it at the Labor Arbiter’s Office so expressly states. even if they contain no detailed or extensive entries as yet. entries are made on such books on a day-to-day basis (or as close thereto as is possible). CORNISTA V. The dismissal of the APCWU case does not by itself show the existence of fraud or collusion or a lack of good faith on the part of APCWU. merely summarize such individual transactions as have been set out in the books of account and are usually prepared at the end of an accounting period. much less informative sources of cash flow information. having been organized for less than a year before its application for registration with the BLR. 5. 875 (1953). EFFECT OF NON-REGISTRATION 80. The point is that the applicant local or chapter must demonstrate to the BLR that it is entitled to registered status because it has in place a system for accounting for members' contributions to its fund even before it actually receives dues or fees from its members.D.e. The controlling intention is to minimize the risk of fraud and diversion in the course of the subsequent formation and growth of the Union. 36 R. 77. PROTECTION TECHNOLOGY. financial statements may be audited statements.) No. inimical and repugnant to the objectives of a strong and dynamic unionism. REPUBLIC V. The Union is a closed shop union. 76. Books of account are quite different in their essential nature from financial statements. Statements of account and financial reports do not set out or repeat the basic data (i. For this reason. what had been actually submitted to the BLR by the Union was a mere "financial statement. 79. It bears noting that the goal of the DOLE is geered towards "a single employer wide unit which is more to the broader and greater benefit of the employees working force. transact. 78. MANILA DIAMOND HOTEL EMPLOYEES UNION. No. ETC. therefore.Labor 2 Midterms Reviewer A labor union is one such party authorized to represent its members under Article 242(a) of the Labor Code which provides that a union may act as the representative of its members for the purpose of collective bargaining. 213 (1936). Registration is a condition sine qua non for the acquisition of legal personality by a labor organization and the exercise of the rights and privileges granted by law to legitimate labor organizations. While a party acting in a representative capacity.A.A. There must be clear and convincing evidence of fraud or collusion or lack of good faith independently of the dismissal. 504 SCRA 659 (06) A labor union's function is to represent its members.O. ETC. Non-submission of such books of account certified by and attested to by the appropriate officer is a ground which the employer can invoke legitimately to oppose a petition for certification election filed by the local or chapter concerned. The Compromise Agreement was ratified by 282 Union members representing a majority of its entire 529 membership. it was the only one with legal authority to negotiate. the former consist of journals. 242 (a) [A legitimate labor organization shall have the right to act as representative of its members for the purpose of collective bargaining] is misplaced for not every legitimate labor organization possesses the rights mentioned therein. upon the other hand. Such accounting books can and must be submitted to the BLR. It can file an action or enter into compromise agreements on behalf of its members. may be permitted to intervene in a case. commonly corresponding to the fiscal year of the establishment or entity concerned. The ratification of the Compromise Agreement by the majority of the Union members necessarily binds the minority. V. 111 (1986) 38 or R. PROF. It is immaterial that the Union. and enter into any agreement with the Bank. 242 (a) must be read in relation to Article 255. 494 SCRA 195 (06) As Art. 255 declares. INC. Art. the individual transactions) on which they are based and are. 533 SCRA 125 (07) Once a union acquires legitimate status as a labor organization. To veer away from such goal would be contrary. V.i. Executive Order (E.e. KAWASHIMA.

certified under oath by the Secretary or Treasurer of the local/chapter and attested by the President. LOVINA. 82 SCRA 280 (78) As long as an applicant union complies with all the legal requirements for registration. Such is the general rule. the issue here was whether or not the union had legal personality at the time it filed the petition for certification election. VII on July 24. What is asked in the questionnaire may be secured by other means. and it was hoped that the submissions would facilitate the listing of respondent under the roster of legitimate labor organizations.Labor 2 Midterms Reviewer The statutory and regulatory provisions defining the requirements of registration of legitimate labor organizations are an exercise of the overriding police power of the state designed for the protection of workers against potential abuses by unions and federations of unions that recruit them. In this case. to submit the enumerated documentary requirements to the Regional Office or Bureau for the specific purpose of creating the local/chapter. but not for the specific purpose of creating the local/chapter. which is then free to file on its own a petition for certification election. 9. The decision of the Labor Relations Division in the regional office denying registration may be appealed by the applicant union to the Bureau within 10 days from receipt of notice thereof. An investigation to be conducted by the Secretary of Labor need not take the form of a questionnaire. 83.All requisite documents and papers shall be certified under oath by the secretary or the treasurer of the organization. Action on application. The Court acknowledges that the strict letter of the procedural rule was not complied with. 86 P 313 (51) Section 3 of Commonwealth Act 213 provides that after the filing of an application to register and operate as a legitimate labor organization. It suffices then to order that petitioner Union be registered. The accompanying letter. He or his representative should conduct and complete that investigation within a reasonable time. as the case may be. 9 had not yet been complied with. 1998. 234. ACTION OR DENIAL OF APPLICATION AND REMEDY – 235-236 Art. SUGBUANON RURAL BANK. INC. 236. True enough. stated that the documents were submitted in compliance with the requirements for the creation of a local/chapter. Denial of registration. V. Nothing is said therein that prohibits such automatic conduct of the certification election if the management appeals on the issue of the validity of the union's registration. a chapter of a national federation. 82. which initiates the creation of the local/chapter. SOBREVIÑAS [2nd Sem 2011-2012] 26 . Yet there are peculiar circumstances in this case that allow the Court to rule that respondent acquired the requisite legal personality at the same time it filed the petition for certification election. there was no attempt made by the national federation. 9. The failure of the officials of the petitioner's union to answer or fill out the questionnaire is no lawful excuse or reason for the respondent to neglect the performance of his duty of conducting and completing the investigation required by section 3 of Commonwealth Act 213. already in possession of legal personality. SAN MIGUEL CORPORATION. It is the submission of these documents. VASSAR INDUSTRIES EMPLOYEES UNION V. Petitioner corporation sought to dismiss the petition on the sole ground that the union was not listed or included in the roster of legitimate labor organizations as released by DOLE Regional Office No. It is claimed that this investigation has not been completed or accomplished because of the union's failure to fill out a questionnaire. filed a petition for certification election. Rule VI. However. PROF. Such legal personality is acquired from the filing of the complete documentary requirements enumerated in Section 1. the manner by which respondent was deemed to have acquired legal personality by the DOLE and the Court of Appeals was not in strict conformity with the provisions of Department Order No. The Bureau shall act on all applications for registration within thirty (30) days from filing. it becomes the BLR’s ministerial duty to register the union. 324 SCRA 425 (00) One of the rights of a legitimate labor organization under Article 242(b) of the Labor Code is the right to be certified as the exclusive representative of all employees in an appropriate bargaining unit for purposes of collective bargaining. which vests legal personality in the local/chapter. he shall issue a permit therefor upon payment of the registration fee of five pesos. and attested to by its president. ETC. since the requisites for acquisition of legal personality under Section 3. Having complied with the requirements of Art. Art. However. appeal. on July 29. the Secretary of Labor "shall conduct an investigation of the activities of the applying labor organization and if. UMALI V. It could be properly said that at the exact moment respondent was filing the petition for certification. along with the names of the local/chapter's officers. The union then submitted the charter certificate along with the other documentary requirements to the Regional Office. V. 467 SCRA 107 (05) Background: The respondent union. 6. ESTRELLA. constitution and by-laws to the Regional Office or Bureau. or the local/chapter for that matter. Rule VI of Department Order No. but for filing the petition for certification election. 81. 84. In regular order. Admittedly. on such investigation. It did however issue a charter certificate to the putative local/chapter. 1998. 235. Thus. Article 257 of the Labor Code mandates that a certification election shall AUTOMATICALLY be conducted by the Med-Arbiter upon the filing of a petition by a legitimate labor organization. ETC. it is our view that respondent union is a legitimate labor union. labor laws are generally construed liberally in favor of labor. signed by union president. it is the submission of these same documents that operates to vest legal personality on the local/chapter. Ruling: The court cited jurisprudence to say that the issuance of the certificate of registration by the Bureau or Regional Office is not the operative act that vests legal personality upon a local/chapter under Department Order No. SAN MIGUEL CORPORATION. 9. there being no legal obstacle to such a step and the duty of the Bureau of Labor Relations being clear. It then submits this charter certificate. especially if doing so affirms the constitutionally guaranteed right to self-organization. it shall appear that the applicant is entitled to registration. LAGUESMA. It could also be discerned that the intention of the Labor Code and its Implementing Rules that only those labor organizations that have acquired legal personality are capacitated to file petitions for certification elections. the federation in question did not submit any of these documentary requirements to the Regional Office or Bureau. Rule VI of Department Order No. Thus. the union submitted to the BLR the same documents earlier attached to its petition for certification. it did not yet possess any legal personality. these same documents were submitted by the local/chapter to the Regional Office as attachments to its petition for certification election. Under Section 3. It issues a charter certificate indicating the creation or establishment of the local/chapter. it is the federation or national union.

SOBREVIÑAS [2nd Sem 2011-2012] 27 . Article 238-A. Cancellation of registration.Labor 2 Midterms Reviewer III. Republic Act No. (As amended by Section 16. false statement or fraud under the circumstances enumerated in Sections (a) to (c) of Article 239 of the Labor Code.A petition for cancellation of union registration shall not suspend the proceedings for certification election nor shall it prevent the filing of a petition for certification election. the minutes of ratification. 2007). No qualification requirements for candidacy to any position shall be imposed other than membership in good standing in subject labor organization. That this provision shall apply only to a legitimate labor organization which has submitted the financial report requirements under this Code: Provided. only on the grounds specified in Article 239 hereof. the minutes of ratification. (As amended by Section 16. 8. moneys and PROF. 86. the nature of the fraud and misrepresentation must be grave and compelling enough to vitiate the consent of a majority of union members. No person who has been convicted of a crime involving moral turpitude shall be eligible for election as a union officer or for appointment to any position in the union.The following may constitute grounds for cancellation of union registration: (a) Misrepresentation. 2007 and became effective on June 14. or. any question of major policy affecting the entire membership of the organization. may be cancelled by the Bureau. The funds of the organization shall not be applied for any purpose or object other than those expressly provided by its constitution and by-laws or those expressly authorized by written resolution adopted by the majority of the members at a general meeting duly called for the purpose. whether national or local. CANCELLATION OF UNION CERTIFICATE REGISTRATION 238-238-A. 6. No officer. and the list of voters. should be considered as having acquired juridical personality which may not be attacked collaterally. disbursement. (c) Voluntary dissolution by the members. false statement or fraud in connection with the adoption or ratification of the constitution and by-laws or amendments thereto. 85. 12. 2007). The members shall determine by secret ballot. The officers of any labor organization shall not be paid any compensation other than the salaries and expenses due to their positions as specifically provided for in its constitution and by-laws. false statements or fraud in connection with the election of officers. to our mind. Republic Act No. provide a valid reason to cancel respondent's certificate of registration. 3. excessive or oppressive fine and forfeiture be imposed. 10. Every payment of fees. 6715. dues. 9481 which lapsed into law on May 25. No labor organization shall knowingly admit as members or continue in membership any individual who belongs to a subversive organization or who is engaged directly or indirectly in any subversive activity. 608 SCRA 706 (09) For the purpose of de-certifying a union such as respondent. (b) Misrepresentation. March 21. or in a written resolution duly authorized by a majority of all the members at a general membership meeting duly called for the purpose. IV. whichever comes earlier: Provided. agent or member of a labor organization shall collect any fees. Every income or revenue of the organization shall be evidenced by a record showing its source. 6715. 5. V SECRETARY OF LABOR. 9. to which they or their union is affiliated. (As amended by Section 5. 596 SCRA 92 (09) The inclusion in the union of disqualified employees is not among the grounds for cancellation of registration. Grounds for cancellation of union registration. For fraud and misrepresentation to be grounds for cancellation of union registration under the Labor Code. and the list of members who took part in the ratification. together with the appointive officers or agents who are entrusted with the handling of funds. in which case. No arbitrary or excessive initiation fees shall be required of the members of a legitimate labor organization nor shall arbitrary. the list of voters. place and purpose of such payment. 239 Article 238. 9481 which lapsed into law on May 25. The members shall directly elect their officers. Such record or receipt shall form part of the financial records of the organization. Republic Act No. 2007 and became effective on June 14. management. Any irregularities in the approval of the resolutions shall be a ground for impeachment or expulsion from the organization. or failure to submit these documents together with the list of the newly elected-appointed officers and their postal addresses to the BLR. . MARIWASA ETC. . CLUP-SLECC and its Affiliates Workers Union. unless the nature of the organization or force majeure renders such secret ballot impractical. including those of the national union or federation. that failure of any labor organization to comply with the periodic financial reports required by law and such rules and regulations promulgated thereunder six (6) months after the effectivity of this Act shall automatically result in the cancellation of union registration of such labor organization. it must be shown that there was misrepresentation. 2. The members shall be entitled to full and detailed reports from their officers and representatives of all financial transactions as provided for in the constitution and by-laws of the organization. within thirty (30) calendar days after the election of officers or from the occurrence of any change in the list of officers of the labor organization. custody or control of the funds. The treasurer of any labor organization and every officer thereof who is responsible for the account of such organization or for the collection. 2007). the board of directors of the organization may make the decision in behalf of the general membership. Thus. March 21. false statement or fraud in connection with the adoption or ratification of the constitution and by-laws or amendments thereto. having been validly issued a certificate of registration. The cancellation of a union's registration doubtless has an impairing dimension on the right of labor to selforganization. (As amended by Section 3. Effect of a petition for cancellation of registration. DOLE. minutes of the election of officers. nothing herein shall restrict the right of the union to seek just and equitable remedies in the appropriate courts. Republic Act No. (As inserted by Section 4.. The secretary or any other responsible union officer shall furnish the Secretary of Labor and Employment with a list of the newly-elected officers. In case of cancellation. and every expenditure of its funds shall be evidenced by a receipt from the person to whom the payment is made. which shall state the date. LUCIA ETC. 9481 which lapsed into law on May 25. The proper procedure for SLECC [the employer] is to file a petition for cancellation of certificate of registration of CLUP-SLECC and its Affiliates Workers Union and not to immediately commence voluntary recognition proceedings with SMSLEC. 1989) 4. Article 239. The bare fact that two signatures appeared twice on the list of those who participated in the organizational meeting would not. 241. dues or other contributions by a member shall be evidenced by a receipt signed by the officer or agent making the collection and entered into the record of the organization to be kept and maintained for the purpose. STA. Republic Act No.The certificate of registration of any legitimate labor organization. further. after due deliberation. UNION-MEMBER RELATIONS – 241 Art. 2007 and became effective on June 14. the minutes of the election of officers. Any action involving the funds of the organization shall prescribe after three (3) years from the date of submission of the annual financial report to the Department of Labor and Employment or from the date the same should have been submitted as required by law. 1989) 11. by secret ballot at intervals of five (5) years. unless such inclusion is due to misrepresentation. or other contributions in its behalf or make any disbursement of its money or funds unless he is duly authorized pursuant to its constitution and by-laws. 7. V SEC. The minutes of the meeting and the list of participants and ballots cast shall be subject to inspection by the Secretary of Labor or his duly authorized representatives. Rights and conditions of membership in a labor organization. in connection with the election of officers. after due hearing. The following are the rights and conditions of membership in a labor organization: 1.

All the foregoing supporting requirements shall be certified under oath by the Secretary or the Treasurer of the local/chapter and attested to by its President. At least thirty percent (30%) of the members of a union or any member or members specially concerned may report such violation to the Bureau. The books of accounts and other records of the financial activities of any labor organization shall be open to inspection by any officer or member thereof during office hours. The rendering of such account shall be made: 1.Labor 2 Midterms Reviewer other properties of the organization. Miscellaneous provisions. for purposes of membership in a labor union. be considered but the agent of its members for the purpose of securing for them fair and just wages and good working conditions and is subject to the obligation of giving the members as its principals all information relevant to union and labor matters entrusted to it. and (c)The local/chapter's constitution and by-laws. As already discussed above. shall render to the organization and to its members a true and correct account of all moneys received and paid by him since he assumed office or since the last day on which he rendered such account. Corollary to this right is the prerogative not to join. It shall be unfair labor practice for a labor organization. The record shall be attested to by the president. Any employee. Therefore. V. ISSUES 1. To restrain or coerce employees in the exercise of their right to self-organization. securities and other properties of the organization entrusted to his custody or under his control. and of all bonds. 2. A. as indicated in this part of the syllabus. 13. It shall be the duty of any labor organization and its officers to inform its members on the provisions of its constitution and by-laws. 318 SCRA 185 (99) Whether employed for a definite period or not. B. SOBREVIÑAS [2nd Sem 2011-2012] 28 . purpose and beneficiary of the deduction. Unfair labor practices of labor organizations. and 16. For this purpose. CIR. agents or representatives: a. and the principal office of the local/chapter. a labor organization shall have the right to prescribe its own rules with respect to the acquisition or retention of membership. the union leadership in the case at bar was recreant in its duty towards the union members in apparently having failed to disclose to the union members the full situation of their judgment credit against respondent. 30 SCRA 917 (69) Just as this Court has stricken down unjust exploitation of laborers by oppressive employers. the votes cast. 15. Note: Read the case over and over again. a corollary of the first. negotiation fees or any other extraordinary fees may be checked off from any amount due to an employee without an individual written authorization duly signed by the employee. attorney’s fees. so will it strike down their unfair treatment by their own unworthy leaders. The union has been evolved as an organization of collective strength for the protection of labor against the unjust exactions of capital. The intent of the law in imposing less requirements in the case of a branch or local of a registered federation or national union is to encourage the affiliation of a local union with a federation or national union in order to increase the local union's bargaining powers respecting terms and conditions of labor. their addresses. ETC. collective bargaining agreement. to organize their administration and activities and to formulate their programmes. ETC. Any violation of the above rights and conditions of membership shall be a ground for cancellation of union registration or expulsion of officers from office. (As amended by Section 33. the other. Upon vacating his office. Fair dealing is equally demanded of unions as well as of employers in their dealings with employees. the purpose of the special assessment or fees and the recipient of such assessment or fees. not only signify the intent to become one. HEIRS OF CRUZ V. However. 533 SCRA 125 (07) A duly registered federation or national union may directly create a local or chapter by submitting to the DOLE Regional Office or to the BLR two copies of the following: (a)A charter certificate issued by the federation or national union indicating the creation or establishment of the local/chapter. Provided. BITONIO. The public authorities shall refrain from any interference which would restrict this right or impede the lawful exercise thereof. Admission and Retention of Membership – 249 (a) 277 (c) Art. whichever is appropriate. That where the local/chapter's constitution and by-laws is the same as that of the federation or national union. Other than for mandatory activities under the Code. 87. NATURE OF RELATIONSHIP 88. At least once a year within thirty (30) days after the close of its fiscal year. SAN MIGUEL CORPORATION. No special assessment or other extraordinary fees may be levied upon the members of a labor organization unless authorized by a written resolution of a majority of all the members in a general membership meeting duly called for the purpose. whether employed for a definite period or not. CONSTITUTION AND BY-LAWS 87. (b)The names of the local/chapter's officers. shall. beginning on his first day of service. to become a union member. SAN MIGUEL. but couldn’t find anything else related to constitution and by-laws. its officers. 2. 277. The Constitution enjoins the State to afford protection to labor. 249. At such other times as may be required by a resolution of the majority of the members of the organization. A. and arises out of two factors: "one is the degree of dependence of the individual employee on the union organization. c. 14. beginning on his first day of service. Republic Act No. the prevailing labor relations system and all their rights and obligations under existing labor laws. any employee shall be considered as such.Art. which is fiduciary in nature. and 3. affiliate with or assist a labor union. this fact shall be indicated accordingly. as a rule. The account shall be duly audited and verified by affidavit and a copy thereof shall be furnished the Secretary of Labor. an employee must. 3 1. to elect their representatives in full freedom. no special assessments. The authorization should specifically state the amount." The union may. be considered as an employee for purposes of membership in any labor union. is the comprehensive power vested in the union with respect to the individual. The Bureau shall have the power to hear and decide any reported violation to mete the appropriate penalty. but also take some positive steps to realize that intent. The procedure for union membership is PROF. registered labor organizations may assess reasonable dues to finance labor relations seminars and other labor education activities.SACTIH Art. ILO CONVENTION NO. UST FACULTY UNION V. The secretary of the organization shall record the minutes of the meeting including the list of all members present. but equally important is the requirement of fair dealing between the union and its members. Criminal and civil liabilities arising from violations of above rights and conditions of membership shall continue to be under the jurisdiction of ordinary courts. Workers' and employers' organizations shall have the right to draw up their constitutions and rules. 6715) 89.

invoke the rights of those who seek admission for the first time. compelling mandate the adoption by the labor union of such corrective and remedial measures in keeping with its laws and regulations. are not intra-union matters and. CIR. an employee whom the union thus refuses to admit to membership. lest by its folly and inaction. 4 SCRA 487 (62) Bugay’s affiliation with the Kapisanan was never terminated. 21 SCRA 216 (67) Although. b. Prudence and equity. Consequently. a state may not compel ordinary voluntary associations to admit thereto any given individual. i. or a union in insisting upon the discharge of. redress must first be sought within the organization itself in accordance with its constitution and by-laws. were the petitioners to be charged and investigated according to the local union's constitution. it becomes bound by the laws and regulations of the parent organization. he may. March 21. disaffiliation and filing a petition for certification election. have engaged in and are engaging in ULP. 91. is the right of self-preservation. And pursuant to the security clause of the new CBA. Inherent in every labor union. and can not arbitrarily he denied readmission. as well as the dictates of law and justice. for its preservation and continued existence. therefore. In the case at bar. at least. Petitioners would be in a far worse position had this procedure been followed. the labor union crumble and fall. it is well settled that union shops are not entitled to arbitrarily exclude qualified applicants for membership. Thus. It is true that the decisions both of the CIR and SC do not contain any statement that the charges preferred by the officers of the union against him which resulted in his expulsion were "trumped up" or fabricated. the employer shall furnish the worker whose employment is sought to be terminated a written notice containing a statement of the causes for termination and shall afford the latter ample opportunity to be heard and to defend himself with the assistance of his representative if he so desires in accordance with company rules and regulations promulgated pursuant to guidelines set by the Department of Labor and Employment. Nonetheless. 121 SCRA 444 (83) That PAFLU [the federation] had the authority to investigate petitioners on the charges filed by their co-employees in the local union and after finding them guilty at charged. the petitioners were charged by the officers of the Amigo Employees Union-PAFLU themselves who were also members of the Board of Directors of said local union. The burden of proving that the termination was for a valid or authorized cause shall rest on the employer. the Court finds. the employer shall not terminate the services of an employee except for a just cause or when authorized by this Title. to expel them from the roll of membership of the Amigo Employees Union-PAFLU is clear under the constitution of the PAFLU to which the local union was affiliated. However. VILLAR V. it has been held that this requirement is not absolute but yields to exception under varying circumstances. March 21. In effect. generally.e. or any organization for that matter. who have the requisite qualifications. he has suffered moral damages. the resolution in question never had any valid effect on his union PROF. and so holds. PAFLU was justified in applying said security clause. An employee who becomes a union member acquires the rights and the concomitant obligations that go with this new status and becomes bound by the union’s rules and regulations. and a closed-shop provision would not justify the employer in discharging. In cases of regular employment. Even under the assumption that the proceedings against Bugay were regular. when they seek the disintegration and destruction of the very union to which they belong. therefore. by their act and conduct. INCIONG. in case of intra-union disputes. 1989) Art. and to his other benefits or their monetary equivalent computed from the time his compensation was withheld from him up to the time of his actual reinstatement. Surely. It should be observed that the main basis of Bugay's action is his claim that because of the ULP committed by the officers of defendant union as found by the CIR and the SC. therefore. It is true that under the Implementing Rules and Regulations of the Labor Code. or that said officers acted maliciously or in bad faith. because membership therein may be accorded or withheld as a matter of privilege. Republic Act No. 6715. When members of a labor union. reiterating the same clause in the old CBA. The closed shop and the union shop cause the admission requirements of trade union to become affected with the public interest. (As amended by Section 34. 92. with more reason may the law and the courts exercise the coercive power when the employee involved is a long standing union member. petitioners admit in their petition that two (2) of the six (6) charges. 277 (b) Art. KAPISANAN NG MGA MANGGAGAWA SA MRR. 90. 1989) membership. that the Kapisanan. Discipline – Due Process Rules – 279. SOBREVIÑAS [2nd Sem 2011-2012] 29 . Miscellaneous provisions. Recognized and salutary is the principle that when a labor union affiliates with a mother union. he is entitled to all the rights and obligations appertaining to every member of the Kapisanan Union actions. 2. RA 6715. 279. It is undisputable that herein petitioners were members of the Amigo Employees Union at the time said union war affiliated with PAFLU. 277.Labor 2 Midterms Reviewer usually embodied in the union’s constitution and by-laws. BUGAY V. but the fact remains that the two courts have found that his expulsion was illegal because of the irregularities committed in his investigation. without any reasonable ground therefor. Thus. they thereby forfeit their rights to remain as members of the union which they seek to destroy. sow the seeds of dissension and strife within the union. must be taken by the chapters within a period of ten days from the time they receive the resolution. are cognizable by PAFPLU. inclusive of allowances. Any decision taken by the employer shall be without prejudice to the right of the worker to contest the validity or legality of his dismissal by filing a complaint with the regional branch of the National Labor Relations Commission. they are bound by the laws and regulations of PAFLU. whether favorable or otherwise. If said unions may be compelled to admit new members. SALUNGA V. Considering that he has been unduly and discriminatorily deprived of such rights and obligations. Subject to the constitutional right of workers to security of tenure and their right to be protected against dismissal except for a just and authorized cause and without prejudice to the requirement of notice under Article 283 of this Code. The Secretary of the Department of Labor and Employment may suspend the effects of the termination pending resolution of the dispute in the event of a prima facie finding by the appropriate official of the Department of Labor and Employment before whom such dispute is pending that the termination may cause a serious labor dispute or is in implementation of a mass lay-off. the rule is qualified in respect of labor unions holding a monopoly in the supply of labor. An employee who is unjustly dismissed from work shall be entitled to reinstatement without loss of seniority rights and other privileges and to his full backwages. Security of tenure. under the aforesaid principle. they would have been tried by a trial committee of three (3) elected among the members of the Board who are themselves the accusers. (As amended by Section 33. it was found that not only has he not been given an opportunity to defend himself but his expulsion was not submitted to the different chapters of the union as required by its constitution and by-laws. hence.

It could not have been a certification election either. Republic Act No. because representation was not the issue. we invalidated the local union elections held at the wrong date without prior notice to members and conducted without regard for duly prescribed ground rules. ETC. Second. 157 SCRA 203 (88) That 51 of the 56 disenfranchised voters were not yet union members at the time of the election of union officers because their names do not appear in the records of the Union does not have a leg to stand on. the sole and exclusive bargaining agent of the employees in the appropriate bargaining unit. No person who has been convicted of a crime involving moral turpitude shall be eligible for election as a union officer or for appointment to any position in the union. CALLEJA. TANCINCO V. 318 SCRA 185 (99) A union election is held pursuant to the union’s constitution and bylaws. Bitonio (99)): An election is held to be void because of certain irregularities: First. By no legal fiat was such assembly transformed into a union activity by the participation of some union members. 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. 241. We held that the proceedings were rendered void by the lack of due process — undue haste. b. as indicated in the memorandum sent to all faculty members by Fr. Unquestionably. lack of adequate safeguards to ensure integrity of the voting. (As amended by Section 16. It was merely a convocation of faculty clubs. their act of joining the election by casting their votes is a clear manifestation of their intention to join the union. k. 1996 election cannot properly be called a union election. if he had been guilty of any. only members of the union can participate in the election of union officers. And Third. Rights and conditions of membership in a labor organization. In this case. BITONIO. an employee belonging to the appropriate bargaining unit but who is not a member of the union cannot vote in the union election. as mandated by Sections 1 and 2 of Article IX of the USTFU's CBL. The members shall directly elect their officers. 94.union members in the election aggravated its irregularity. in the affirmative case. purported election was not done by secret PROF. UST FACULTY UNION V. Director. Second. A union election should be distinguished from a certification election. it must be assumed that they did this with knowledge of his life and character. Third. The following are the rights and conditions of membership in a labor organization: c. Specifically. Election Officers – Qualifications. good morals or public policy. a. OP. and the right to vote in it is enjoyed only by union members. and the absence of the notice of the dates of balloting. as long as they are not contrary to law. the October 4. the October 4. The question however of eligibility to vote may be determined through the use of the payroll and employee's status during the applicable payroll period. Bureau of Labor Relations. Thus. because the procedure laid down in the USTFU's CBL for the election of officers was not followed. where people have elected a man to office. It was in fact a gathering that was called and participated in by management and non. In both elections. to which they or their union is affiliated. The officers of any labor organization shall not be paid any compensation other than the salaries and expenses due to their positions as specifically provided for in its constitution and by-laws. As such. as well as Article 241 (c) of the Labor Code. through secret ballot. and that they disregarded of forgave his faults or misconduct. there are procedures to be followed. together with the appointive officers or agents who are entrusted with the handling of funds. SOBREVIÑAS [2nd Sem 2011-2012] 30 . the union’s constitution and bylaws should be upheld.union members. Voters List 93. there was no commission on elections to oversee the election. Rodel Aligan. union affairs and elections cannot be decided in a nonunion activity. by secret ballot at intervals of five (5) years. all employees belonging to the appropriate bargaining unit can vote. Tenure and Compensation – 241 (c) (f) (k) Art. Submission of the employees names with the BLR as qualified members of the union is not a condition sine qua non to enable said members to vote in the election of union's officers. No qualification requirements for candidacy to any position shall be imposed other than membership in good standing in subject labor organization. including those of the national union or federation. within thirty (30) calendar days after the election of officers or from the occurrence of any change in the list of officers of the labor organization. However. The October 4. a union member who likewise belongs to the appropriate bargaining unit is entitled to vote in said election. Manner of Election. In a certification election. Disqualification Candidate 95. They embody a covenant between a union and its members and constitute the fundamental law governing the members' rights and obligations. 584 SCRA 684 (09) Doctrine: (Citing UST v. the assembly was not a union meeting. 1989) f. Any irregularities in the approval of the resolutions shall be a ground for impeachment or expulsion from the organization. the purported election was not done by secret balloting. March 21. there was no commission on elections to oversee the election as mandated by their CBL. Verily. It was not convened in accordance with the provision on general membership meetings as found in Article VIII of the USTFU's CBL. the reverse is not always true. Article IX of the USTFU's CBL.Labor 2 Midterms Reviewer 3. 96. UST. unless otherwise authorized by the constitution and bylaws of the union. V. Therefore. or in a written resolution duly authorized by a majority of all the members at a general membership meeting duly called for the purpose. 1996 assembly was not called by the USTFU. 1996 election was tainted with irregularities because of the following reasons. The secretary or any other responsible union officer shall furnish the Secretary of Labor and Employment with a list of the newly-elected officers. 6715. TRAJANO. as amended. In Rodriguez v. The importance of a union’s constitution and bylaws (CBL) cannot be overemphasized. Court held: Absent overriding considerations to the contrary. considering that none of the parties insisted on the use of the payroll period-list as voting list and considering further that the 51 remaining employees were correctly ruled to be qualified for membership. MANALAD V. in violation of Section 6. 174 SCRA 322 (89) Doctrine: Case: Court was asked to disqualify a candidate already elected for an alleged failure to follow a previous resolution of the court. UST. ETC. First. the secretary general of the University of Santo Tomas. the will of the majority in the latter elections should be respected. The minutes of the meeting and the list of participants and ballots cast shall be subject to inspection by the Secretary of Labor or his duly authorized representatives. It is true that under article 242(c) of the Labor Code. for purposes of collective bargaining. which is the process of determining. and the proper procedure for such election was not followed. it was a mere convocation and not convened in accordance with the Union’s Constitution and By-Laws (CBL). The participation of non. by whichparticular labor organization. assembly was not called by the Union.

Republic Act No. 6715. 274 Art. and not call for a referendum to decide the issue. i. HALILI V. after due deliberation. Every income or revenue of the organization shall be evidenced by a record showing its source. negotiation fees or any other extraordinary fees may be checked off from any amount due to an employee without an individual written authorization duly signed by the employee. 241. in which case. (k). 99. as well as Article 241 (c) of the Labor Code. 4. March 21. as prayed for. The following are the rights and conditions of membership in a labor organization: b. securities and other properties of the organization entrusted to his custody or under his control. j. and c. which shall state the date. KAPISANAN NG MANGGAGAWANG PINAGYAKAP (KMP) V. The treasurer of any labor organization and every officer thereof who is responsible for the account of such organization or for the collection. Election Invalid 98. No officer. That this provision shall apply only to a legitimate labor organization which has submitted the financial report requirements under this Code: Provided. moneys and other properties of the organization. whichever comes earlier: Provided. TRAJANO 134 SCRA 236 (85) Doctrine: The remedy against erring union officers is not referendum but union expulsion. attorney’s fees. should have meted out the appropriate penalty on them. The following are the rights and conditions of membership in a labor organization: d. agent or member of a labor organization shall collect any fees. The Secretary of Labor and Employment or his duly authorized representative is hereby empowered to inquire into the financial activities of legitimate labor organizations upon the filing of a complaint under oath and duly supported by the written consent of at least twenty percent (20%) of the total membership of the labor organization concerned and to examine their books of accounts and other records to determine compliance or non-compliance with the law and to prosecute any violations of the law and PROF. 241. CIR 136 SCRA 112 (85) Doctrine: The retainer's contract between a lawyer and the Union was considered anomalous and even illegal as well as unethical since the contract was executed only between the lawyer and the officers of the Union chosen by about 125 members only . lack of adequate safeguards to ensure integrity of the voting. 5. in violation of their CBL. Expulsion Remedy 97. Any action involving the funds of the organization shall prescribe after three (3) years from the date of submission of the annual financial report to the Department of Labor and Employment or from the date the same should have been submitted as required by law. Union Funds – 241 (b). (As amended by Section 16. The rendering of such account shall be made: a. that failure of any labor organization to comply with the periodic financial reports required by law and such rules and regulations promulgated thereunder six (6) months after the effectivity of this Act shall automatically result in the cancellation of union registration of such labor organization. and absence of notice of the dates of balloting will render the proceedings void. If the union officers (also petitioners) were guilty of the alleged acts imputed against them (falsification and misrepresentation). said public respondent pursuant to Article 242 of the New Labor Code and in the light of Our ruling in Duyag vs. Any irregularities in the approval of the resolutions shall be a ground for impeachment or expulsion from the organization. the board of directors of the organization may make the decision in behalf of the general membership. Upon vacating his office. The books of accounts and other records of the financial activities of any labor organization shall be open to inspection by any officer or member thereof during office hours. unless the nature of the organization or force majeure renders such secret ballot impractical. At least once a year within thirty (30) days after the close of its fiscal year. DIRECTOR BUREAU OF LABOR RELATIONS 165 SCRA 239 (88) Doctrine: An election attended by undue haste. Every payment of fees. custody or control of the funds. The authorization should specifically state the amount. Visitorial power. The members shall determine by secret ballot. only 14% of the total membership of 897 was represented. further. d. At such other times as may be required by a resolution of the majority of the members of the organization. dues. or other contributions in its behalf or make any disbursement of its money or funds unless he is duly authorized pursuant to its constitution and by-laws. purpose and beneficiary of the deduction. h. (l). It was not a contract with the general membership. maintained for the purpose. Rights and conditions of membership in a labor organization. (g). and of all bonds. no special assessments. The officers of any labor organization shall not be paid any compensation other than the salaries and expenses due to their positions as specifically provided for in its constitution and by-laws. Art. any question of major policy affecting the entire membership of the organization. xxx Other than for mandatory activities under the Code. place and purpose of such payment.e. c. A union election is held pursuant to the union’s constitution and bylaws. (o). Inciong. The account shall be duly audited and verified by affidavit and a copy thereof shall be furnished the Secretary of Labor. and every expenditure of its funds shall be evidenced by a receipt from the person to whom the payment is made. 274.. to expel them from the Union. shall render to the organization and to its members a true and correct account of all moneys received and paid by him since he assumed office or since the last day on which he rendered such account. g. m. management. b. dues or other contributions by a member shall be evidenced by a receipt signed by the officer or agent making the collection and entered into the record of the organization to be kept and o. SOBREVIÑAS [2nd Sem 2011-2012] 31 . The funds of the organization shall not be applied for any purpose or object other than those expressly provided by its constitution and bylaws or those expressly authorized by written resolution adopted by the majority of the members at a general meeting duly called for the purpose. i. (i). 1989) k. (j). RODRIGUEZ V. and the right to vote in it is enjoyed only by union members. Free and honest elections are indispensable to the enjoyment by employees and workers of their constitutionally protected right to selforganization. l. (h). or in a written resolution duly authorized by a majority of all the members at a general membership meeting duly called for the purpose. MAJOR POLICY MATTER – 241 (D) Art. disbursement. The minutes of the meeting and the list of participants and ballots cast shall be subject to inspection by the Secretary of Labor or his duly authorized representatives. Rights and conditions of membership in a labor organization.Labor 2 Midterms Reviewer balloting. The members shall be entitled to full and detailed reports from their officers and representatives of all financial transactions as provided for in the constitution and by-laws of the organization. (m). Such record or receipt shall form part of the financial records of the organization.

Rights and conditions of membership in a labor organization. purpose. (As amended by Presidential Decree No. The following are the rights and conditions of membership in a labor organization: n. the purpose of the special assessment or fees and the recipient of such assessment or fees. 103. PACIFIC BANKING CORPORATION V. and In cases where the employer is authorized by law or regulations issued by the Secretary of Labor and Employment. CALLEJA 182 SCRA 710 (90) Doctrine: No check-offs from any amount due employees may be effected without individual written authorizations duly signed by the employees specifically stating the amount. 1980) Art. including all funds. Wage deduction. a. SOBREVIÑAS [2nd Sem 2011-2012] 32 .Labor 2 Midterms Reviewer the union constitution and by-laws: Provided. particularly the handling of their funds. The amount awarded in the CBA is not part of the union funds. Union Dues – 113 Art. 100. DIRECTOR BUREAU OF LABOR RELATIONS 165 SCRA 239 (88) Doctrine: A resolution increasing union dues which does not bear the signature of at least 2/3 of the members of the council. a. b. or 2. 113 Art. May 1. The secretary of the organization shall record the minutes of the meeting including the list of all members present. attorney’s fees. in cases where the right of the worker or his union to check-off has been recognized by the employer or authorized in writing by the individual worker concerned. Source – Payment – Attorney’s Fees – 222 cf. INCIONG 98 SCRA 522 (81) Doctrine: A Labor Official has the power to expel Union officers and to enforce strictly the law and regulations governing trade unions even if that course of action would curtail the so-called union autonomy and freedom from government interference. in his own behalf or in behalf of any person. Appearances and Fees. arbitrary and oppressive. In cases where the worker is insured with his consent by the employer. In cases where the employer is authorized by law or regulations issued by the Secretary of Labor and Employment. 101. It is money of the employees b. March 21. If they represent their organization or members thereof. If they represent their organization or members thereof. 222. Other than for mandatory activities under the Code. If they represent themselves. the votes cast. and the deduction is to recompense the employer for the amount paid by him as premium on the insurance. that attorney’s fees may be charged against union funds in an amount to be agreed upon by the parties. No attorney’s fees. 6. agreement or arrangement of any sort to the contrary shall be null and void. The following are the rights and conditions of membership in a labor organization: n. (As amended by Presidential Decree No. However. PALACOL V. negotiation fees or similar charges of any kind arising from any collective bargaining agreement shall be imposed on any individual member of the contracting union: Provided. (O). CLAVE 128 SCRA 112 (84) Doctrine: The Attorney’s fees of the lawyer who assisted the union president in negotiating the CBA cannot be deducted from the monetary benefits awarded in a CBA. Non-lawyers may appear before the Commission or any Labor Arbiter only: 1. shall make any deduction from the wages of his employees. in cases where the right of the worker or his union to check-off has been recognized by the employer or authorized in writing by the individual worker concerned. No special assessment or other extraordinary fees may be levied upon the members of a labor organization unless authorized by a written resolution of a majority of all the members in a general membership meeting duly called for the purpose. Article 222 ordains that union funds should be used for the payment of attorney’s fees. In cases where the worker is insured with his consent by the employer. so as to forestall 104. 113. Art. 102. 222. RI (c) Art. The record shall be attested to by the president. 1989) Book V. For union dues. March 21. Any contract. 1. Book V. (As amended by Section 31. that attorney’s fees may be charged against union funds in an amount to be agreed upon by the parties. 113. No employer. Examination Book –274. No attorney’s fees. 241. 1691. negotiation fees or any other extraordinary fees may be checked off from any amount due to an employee without an individual written authorization duly signed by the employee. 222. no special assessments. Rule 1. The authorization should specifically state the amount. Definition of Terms (c) “Audit Examiner” refers to an officer of the Bureau or Labor Relations Division of the Regional Office authorized to conduct an audit or examination of the books of accounts. and beneficiary PROF. Republic Act No. RODRIGUEZ V. 6715. assets and other accountabilities of a legitimate labor organization and workers association. DUYAG V. May 1. the votes cast. and e. Appearances and Fees. the purpose of the special assessment or fees and the recipient of such assessment or fees. 105. No special assessment or other extraordinary fees may be levied upon the members of a labor organization unless authorized by a written resolution of a majority of all the members in a general membership meeting duly called for the purpose. or 2. However. 1989) abuses and venalities. c. Implementing Rules. negotiation fees or similar charges of any kind arising from any collective bargaining agreement shall be imposed on any individual member of the contracting union: Provided. Republic Act No. shall make any deduction from the wages of his employees. in his own behalf or in behalf of any person. 274. It is necessary and desirable that the Bureau of Labor Relations and the Ministry of Labor should exercise close and constant supervision over labor unions. The Secretary of Labor and Employment or his duly authorized representative is hereby empowered to inquire into the financial activities of legitimate labor organizations upon the filing of a complaint under oath and duly supported by the written consent of at least twenty percent (20%) of the total membership of the labor organization concerned and to examine their books of accounts and other records to determine compliance or non-compliance with the law and to prosecute any violations of the law and the union constitution and by-laws: Provided. 241 (n) Art. Any contract. The record shall be attested to by the president. 1691. b. That such inquiry or examination shall not be conducted during the sixty (60)-day freedom period nor within the thirty (30) days immediately preceding the date of election of union officials. Sec. Rights and conditions of membership in a labor organization. 1980) Art. d. o. purpose and beneficiary of the deduction. Non-lawyers may appear before the Commission or any Labor Arbiter only: 1. If they represent themselves. The secretary of the organization shall record the minutes of the meeting including the list of all members present. No employer. Wage deduction. except: a. contrary to the requirements of the union constitution and by-laws is invalid and will be struck down as illegal and void. SOURCE – PAYMENT – SPECIAL ASSESSMENT = 241 (N). b. 241. a. and the deduction is to recompense the employer for the amount paid by him as premium on the insurance. For union dues. 6715. (As amended by Section 31. Visitorial power. That such inquiry or examination shall not be conducted during the sixty (60)-day freedom period nor within the thirty (30) days immediately preceding the date of election of union officials. except: c. agreement or arrangement of any sort to the contrary shall be null and void.

there are exceptions to the applicability of this doctrine. for instance. it becomes incumbent upon them to seek the aid of the BLR. they should be resorted to before recourse can be made to the appropriate administrative or judicial body. 6) when irreparable damage will be suffered.” Any violation of the above rights and conditions shall be a ground for cancellation of union registration or expulsion of an officer from office. CONTINENTAL CEMENT. Hence. They misinformed their members and led the union to commit an illegal strike. The BLR was empowered to rule on the same to avoid further delay of the case. VENGCO V. No deduction can be made from the salaries of the concerned employees other than those mandated by law. There was proper application by the MedArbiter of the exception to the rule of exhaustion of administrative remedies. 2) when the administrative body is in estoppel. DIOKNO V CACDAC. SOBREVIÑAS [2nd Sem 2011-2012] 33 . 189 SCRA 134 (90) The officers of the union have the duty to guide their members to respect the law. 107. 108. 526 SCRA 440 (07) As a general rule. the officers of the union urged their members to violate the law and defy the duly constituted authorities. purpose and beneficiary of the deduction. 113. A party with an administrative remedy must not merely initiate the prescribed administrative procedure to obtain relief. GABRIEL V. In this case. the prevailing labor relations system and all their rights and obligations under existing labor laws. before a party is allowed to seek the intervention of the court. attorney's fees. This is in accord with the constitutional principle of the State affording full protection to labor. attorneys fees and representation expenses are valid if they satisfy the requirements under Art. DIAMONON V DOLE. The question asked in the plebiscite. SARAPAT V SALANGA. SEC. Clearly. practical and convenient solution to a labor problem. Art. TRAJANO 173 SCRA 155 (89) Doctrine: It is very clear from the above-quoted provision that attorney's fees may not be deducted or checked off from any amount due to an employee without his written consent except for mandatory activities under the Code. Their responsibility is greater than that of the members. 182 SCRA 710 (90) Doctrine: The provisions for the check off regarding the 10% special assessment for union incidental expenses. ABS-CBN. besides not being explicit. granted under a collective bargaining agreement (CBA). a special assessment cannot be validly deducted by a labor union from the lump-sum pay of its members. 7. 538 SCRA 324 (07) Hearings and resolutions of labor disputes are not governed by the strict and technical rules of evidence and procedure observed in the regular courts of law. ETC. GALVADORES V. 8. 8) when strong public interest is involved. purpose and beneficiary of the deduction. notwithstanding its "compulsory" nature. negotiation fees or any other extraordinary fees may be checked off from any amount due to an employee without an individual written authorization duly signed by the employee. But this case never reached its conclusion in view of the parties' agreement. However. The benefits awarded to the employees still formed part of the collective bargaining negotiations although placed already under compulsory arbitration. Technical rules of procedure are not applicable in labor cases. no special assessment. speedy. but may apply only by analogy or in a suppletory character. 327 SCRA 282 (00) When the Constitution and By-Laws of Union dictate the remedy for internal dispute. 4) when there is urgent need for judicial intervention. the BLR was justified in taking cognizance of the case to resolve the issue of the propriety of the litigation expenses upon which the 5% special assessment fee was based. OF LABOR 328 SCRA 247 (00) Doctrine: The Art. CBA. Even though the issue initially raised on appeal was limited to the Order of the DOLE-NCR Regional Director to hold a general membership meeting. cannot be held valid. made without valid individual authorizations. 9) when the subject of the proceeding is private land. A mandatory activity has been defined as a judicial process of settling dispute laid down by the law. The amicable settlement entered into by the management and the union cannot be considered as a mandatory activity under the Code. 421 (p) provides that “it shall be the duty of any PROF. ENFORCEMENT AND REMEDIES – PROCEDURE JURISDICTION (EXHAUSTION OF INTERNAL REMEDIES) AND SANCTIONS: 111. To insist on the contrary is to render their exhaustion of remedies within the union as illusory and vain. 7) when there is no other plain. Among the established exceptions are: 1) when the question raised is purely legal. The premature invocation of court intervention is fatal to one’s cause of action. TRAJANO 144 SCRA 138 (86) Doctrine: No check-offs from any amounts due employees may be effected without individual written authorizations duly signed by the employee specifically stating the amount. CONTINENTAL CEMENT CORP LABOR UNION V. 10) in quo warranto proceedings. it is a precondition that he should have availed of all the means of administrative processes afforded him.Labor 2 Midterms Reviewer of the deduction. consideration of the issue became necessary to arrive at a just decision and complete resolution of the case. V. 112. The authorization should specifically state the amount. 3) when the act complained of is patently illegal.24(o) provides: Other than for mandatory activities under the Code. labor organization and its officers to inform its members on the provisions of its constitution and by-laws. and 11) where the facts show that there was a violation of due process. 2) secretary's record of the minutes of the meeting. when there is a need to attain substantial justice and an expeditious. Their dismissal from service is a just penalty for their unlawful acts. ABS-CBN. The facts of the case sustain the finding that the private respondents were deprived of due process. The check-off (made to pay atty’s fees). assumed that there was no dispute relative to attorney's fees. 5) when the claim involved is small. The compulsory arbitration is not the "mandatory activity" under the Code which dispenses with individual written authorizations for check-offs. 106. Hence. It is true that the union filed a claim for emergency cost of living allowance and other benefits before the Ministry of Labor. UNION INFORMATION 110. and 3) individual written authorization for check-off duly signed by the employee concerned. 241 namely: 1) authorization by a written resolution of the majority of all the members at the general membership meeting duly called for the purpose. but also 109. ETC. and adequate remedy.

3. 127 SCRA 268 (84) The issue that was raised in this case was WON a supervisor’s union may affiliate with a federation with which unions of rank-and-file EEs of the same ER are also affiliated. and free also to renounce the affiliation for mutual welfare upon the terms laid down in the agreement which brought it into existence. V. free to serve their own interests subject to the restraints imposed by the constitution and by-laws of the national federation. 134 SCRA 236 (85) In this case.e. However. it has been held that this requirement is not absolute but yields to exception under varying circumstances. His failure to seek recourse before the National convention on his complaint against private respondents taints his action with prematurity. Salesmen Association (FFW). Supervisory employees shall not be eligible for membership in the collective bargaining unit of the rank-and-file employees but may join. The essential purpose was the affiliation of the local unions into a common enterprise to increase by collective action the common bargaining power in respect of the terms and conditions of labor. as prayed for. The SC held that If the union officers were guilty of the alleged acts imputed against them. Right of Supervisory Employees. notwithstanding the failure of the local union to comply with the procedural requirements that would make it a legitimate labor organization. But if the complainants had done so the board of directors would in effect be acting as respondent investigator and judge at the same time. Ineligibility of Managerial Employees to Join any Labor Organization. Inc. the Med-Arbiter ordered the holding of a referendum. 318 SCRA 68 (99) As enunciated in the case of Liberty Cotton Mills Workers Union v Liberty Cotton Mills Inc. should have meted out the appropriate penalty on them. in case of intraunion disputes.. Director Trajano however affirmed in toto the order of the Med-Arbiter. V CIR. assist or form any labor organization. by collective action. subject to the restraints imposed by the Constitution and By-laws of the Association. ADAMSON AND ADAMSON INC. particularly where property rights of the members are involved. Inc. 2. 114. to expel them from the Union. it will not be insisted upon. RULE – AFFILIATION – COMPARE: 245-A AND CASES ART. Such right is based on the ground that as separate and voluntary associations. not only did petitioner fail to comply with Section 2. to secure justice for themselves. In this case. there are times when without succor and support local unions may find it hard. SOBREVIÑAS [2nd Sem 2011-2012] 34 . local unions do not owe their creation and existence to the national federation to which they are affiliated but. Private respondents claimed that the MedArbiter erred in calling a referendum to decide the issue. nothing was heard of petitioner’s complaint against private respondents on the latter’s alleged unauthorized and illegal disbursement of union funds. 375 SCRA 369 (02) The sole essence of affiliation is to increase. The constitution and by-laws of the union provide that charges for any violations thereof shall be filed before the said board. to be conducted under the supervision of the BLR. i. There could be no employer influence on rank-and-file organizational activities nor could there be any rank and file influence on the supervisory function of the supervisors because of the representation sought to be proscribed. NATURE OF RELATIONSHIP 117. the common bargaining power of local unions for the effective enhancement and protection of their interests. unaided by other support groups. have their own respective constitutions and by-laws. Both sent their separate proposals for collective bar agreements with their employer. and free also to renounce the affiliation upon the terms laid down in the agreement which brought such affiliation into existence. Rule VIII. to the will of their members. The SC decided in the affirmative and discussed the basic principle that. redress must first be sought within the organization itself in accordance with its constitution and by-laws. “The locals are separate and distinct units primarily designed to secure and maintain the equality of bargaining power between the employer and their employee-member in the economic struggle for the fruits of the joint productive effort of labor and capital.. as a condition to the right to invoke the aid of a court 9. instead. PHILIPPINE SKYLANDERS V NLRC. the mother union.Managerial employees are not eligible to join. VILLAR V INCIONG. 245. A case in point would be Kapisanan ng mga Manggagawa sa MRR v Hernandez wherein the complaint was filed against the union and its incumbent officers. The same is true even if the local union is not a legitimate labor organization. . They are separately and independently registered of each other. and not call for a referendum to decide the issue. ENFORCEMENT AND REMEDIES – PROCEDURE AND SANCTIONS: REMEDY 115. Liberty Cotton Mills. free to serve their own and the commoninterest of all. They claim that the appropriate action should be the expulsion of the union officers. some of whom were members of the board of directors. and the association of the locals into the national union was in the furtherance of the same end. had the status of an agent while the local union remained the basic unit of the association free to serve the common interest of all its members subject only to the restraints imposed by the constitution and by-laws of the association. Admittedly. assist or form separate PROF. where exhaustion of remedies within the union itself would practically amount to a denial of justice or would be illusory or vain. The right of a local union to disaffiliate from its mother federation was upheld in the landmark case of Liberty Cotton Mills Workers Union vs. EFFECT.” The Adamson and Adamson Supervisory Union and the Adamson and Adamson. to decide on the issue of whether to expel or suspend the union officers from their respective positions. To follow the procedure indicated would be a farce under the circumstances. KAPISANAN NG MANGGAGAWANG PINAGYAKAP V TRAJANO. The mother federation is a mere agent and the local chapter/union is the principal. Yet the local unions remain the basic units of association. the public respondent pursuant to Article 242 of the New Labor Code and in the light of the ruling in Duyag vs. FILIPINO PIPE AND FOUNDRY CORPORATION.Labor 2 Midterms Reviewer pursue it to its appropriate conclusion before seeking judicial intervention. Book V of the Implementing Rules of the Labor Code but he also did not exhaust the remedies set forth by the Constitution and by-laws of both unions. Inciong. 121 SCRA 444 (83) It is true that under the IRR of the Labor Code. Yet the locals remained the basic units of association. acting for and behalf of its affiliate. In the National Convention of PACIWU and NACUSIP.LEGAL PERSONALITY 118. PURPOSE 116.. UNION AFFILIATION 1.

are separate and distinct.. The rank and file union and the supervisors' union operating within the same establishment may join the same federation or national union ART. TROPICAL HUT FOOD MARKET. MEDICAL CENTER V. Said employees are automatically deemed removed from the list of membership of said union. 128. 2. authorization. LOCAL UNION DISAFFILIATION 1. BLR [75 SCRA 162 (1977)] Once disaffiliation has been demonstrated beyond doubt. and (b) the R&F employees work under the direct supervision of the members of the supervisors’ union. INC. NLRC [224 SCRA 410 (1993)] The right of a local union to disaffiliate from a federation in the absence of any provision in the federation’s constitution preventing disaffiliation of a local union is legal. DE LA SALLE UNIV. Yet the local unions remain the basic units of association.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. is free to serve the interest of all its members including the freedom to disaffiliate when circumstances warrant. STATUTORY BASIS – 248 (E) 119. PHILIPPINE SKYLANDERS. Remittance of dues by ER to union/fed. in accordance with the constitutional guarantee of freedom of association. LAGUESMA [294 SCRA (1998)] For the prohibition (for supervisory union and R&F union affiliating with the same national fed) to apply. BLR [137 SCRA 42 (85)] Local union may lawfully renounce its affiliation with the national federation. VI. Such PROF.Labor 2 Midterms Reviewer collective bargaining units and/or legitimate labor organizations of their own. SC held no ULP). they must suffer the consequences of their separation from the union under the security clause of the CBA (i. NLRC [ 375 SCRA 369 (2002)] Upheld the legality of disaffiliation of the local union from the mother federation. SOBREVIÑAS [2nd Sem 2011-2012] 35 . the national fed has no right to collect union dues from the members of the local union. dismissal from employment). is good only as long as they remain members of the union concerned. Also – The Union security clause in the CBA cannot be used to justify the dismissal of members of the union when the local union disaffiliated from the mother federation. V. After having disaffiliated. INC. This right is consistent with the constitutional guarantee of freedom of association. a certification election is the most expeditious way of determining which union should be the exclusive bargaining representative of the employees. MALAYANG SAMAHAN NG MGA MANGGAGAWA SA GREENFIELD V. TROPICAL HUT EMPLOYEES UNION V. are more identified with the interests of the employer.e. being a separate and voluntary association. (In this case. free to serve their own interests subject to the restraints imposed by the constitution and by-laws of the national federation. RAMOS [326 SCRA 428 (2000)] Disaffiliation is not an act of disloyalty against the mother federation. and such provision in a CBA is not a restriction of the right of freedom of association guaranteed by the Constitution. Effect of Inclusion as Members of Employees Outside the Bargaining Unit. when they recommend action implementing management policy or ask for the discipline or dismissal of subordinates. thus. being a separate and voluntary association. UNION SECURITY A. A local union. As to effect. ATLAS LITHOGRAPHIC V. In addition. A local union has the right to disaffiliate from its mother union or declare its autonomy. run counter to the interests of the rank-and-file. . formed independently. 121. they identify with the interests of the employer and may act contrary to the interests of the rank-and-file. VOLKSCHEL LABOR UNION V. NATURE RIGHT DISAFFILIATION 122. The performance of those functions may. the rank-and-file employees are not directly under the supervisors who comprise the supervisors' union) FVS: Adamson & Atlas cases are not good law anymore as they had been modified by Art 245 (as amended by RA 9481) 120. SUPRA [121 SCRA 444 (1983)] Employees have the right to disaffiliate from their union and form a new organization of their own. A closed shop is a valid form of union security. LAGUESMA [205 SCRA 12 (1992)] Supervisors’ union and R&F unions of the same company. PHILIPPINE LABOR ALLIANCE COUNCIL V. even if declared irrevocable. VILLAR V. the supervisors must have direct authority over the rank-and-file employees. 124. ALEX FERRER V. however. 127. and free also to renounce the affiliation upon the terms laid down in the agreement which brought such affiliation into existence. [181 SCRA 173 (1990)] The right of a local union to disaffiliate from its mother federation is well-settled. CBA imposes dismissal only in case an employee is expelled from the union for joining another federation or for forming another union or who fails or refuses to maintain membership therein. On role of supervisor vis-à-vis conflict of interest: o The interests of supervisors on the one hand. is conditioned on the individual check-off authorization of the union members. A local union. 123. and the rank-andfile employees on the other. CIR [127 SCRA 268 (1984)] Unions formed independently by supervisory and rank-and-file employees of a company may legally affiliate with the same national federation. RULE – LEGALITY ACT – DISAFFILIATION 125. ADAMSON & ADAMSON V. B. it is not enough that the supervisory union and the rank-and-file union are affiliated with a single federation. 126. 245-A. o The peculiar role of supervisors is such that while they are not managers. are allowed to affiliate with the same national federation where: (a) the federation actively participates in union activity in the company. filed ULP case against the ER for being excluded from CB negotiation. the fed. being recommendatory in nature. The federation ceases to have any personality to represent the local union in the CBA negotiation (in this case. INCIONG. The functions of supervisors. is free to serve the interests of all its members including the freedom to disaffiliate or declare its autonomy from the federation to which it belongs when circumstances warrant.

the employer needs only to determine and prove that: (1) the union security clause is applicable. Definitions: union shop – when all new regular employees are required to join the union within a certain period as a condition for their continued employment. closed-shop – an enterprise in which. Declaration of Policy. ALABANG COUNTRY CLUB. NLRC. V. union shop – when all new regular employees are required to join the union within a certain period as a condition for their continued employment. 130. the union gains more members and strengthens its position against other unions who may wish to claim majority representation. or who thereafter become members. 248. must be members of respondent union: PROF. It is inapplicable to those already in the service who are members of another union. paragraph (o) of this Code shall not apply to the non-members of the recognized collective bargaining agent. 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. except in a very limited sense namely. It shall be unlawful for an employer to commit any of the following unfair labor practice: x x x e. 134. (2) the union is requesting for the enforcement of the union security provision in the CBA. To discriminate in regard to wages. TYPES OF UNION SECURITY PROVISIONS Art. remains a member in good standing of a union entirely comprised of or of which the employees in interest are a part. NATIONAL UNION OF WORKERS IN HOTELS. 211. NLRC. FIRST PHILIPPINE SCALES. becomes. the dismissal from employment based on the same is recognized and accepted in our jurisdiction. that the laborers. the maintenance of membership shop. D. VALIDITY AGREEMENT AND AFFECT ON FREEDOM OF CHOICE 131. V. To hold otherwise would render minority unions at a grave disadvantage and force their members to disaffiliate with them to join the majority union and render nugatory the right of employees to self-organization. or who thereafter become members. NLRC [545 SCRA 351 (2008)] Enforcement of a union security clause in the CBA is another valid ground for termination of employment. the maintenance of treasury shop. . It is the policy of the State: x x x c." "union shop.. “Union security” is a generic term. SUPRA Enforcement of a union security clause in the CBA is another valid ground for termination of employment. must maintain union membership as a condition for continued employment until they are promoted or transferred out of the bargaining unit or the agreement is terminated. which is applied to and comprehends “closed shop. V. and check-off provisions are valid forms of union security and strength. 915). The closed shop. GUIJARNO V. ALABANG COUNTRY CLUB. who are union members as of the effective date of the agreement. must maintain union membership as a condition for continued employment until they are promoted or transferred out of the bargaining unit or the agreement is terminated. B. INC. no person may be employed in any or certain agreed departments of the enterprise unless he or she is. Anakan Lumber Co. To foster the free and voluntary organization of a strong and united labor movement. 133. Art 248(e) of the LC recognizes the effectivity of a union shop clause. NLRC [567 SCRA 291 (2008)] "Union security" is a generic term which is applied to and comprehends "closed shop. INC. INC. except those employees who are already members of another union at the time of the signing of the collective bargaining agreement. RIZAL LABOR UNION V RIZAL CEMENT CO (17 SCRA 858) The following CBA provisions does not establish a closed shop. Unfair labor practices of employers. This practice strengthens the union and prevents disunity in the bargaining unit within the duration of the CBA with the threat of expulsion from the union and consequent termination of employment. employees and workers engaged by the company after the signing of the agreement. RATIONALE – 211 (C) C.” “union shop. 129. They do not constitute ULP nor are they violations of the freedom of association clause of the Constitution 132.107 Phil. the union shop. SUPRA [545 SCRA 351 (08) ] Enforcement of a union security clause in the CBA is another valid ground for termination of employment. ETC. that the individual authorization required under Article 242. by agreement between the ER and his EEs or their representatives. In terminating the employment of an employee by enforcing the union security clause. hours of work and other terms and conditions of employment in order to encourage or discourage membership in any labor organization. which are both held valid by the SC. [688 SCRA 471 (2009)] While Arts. ALABANG COUNTRY CLUB. maintenance of membership shop – when employees.. et al. the preferential shop. TANDUAY DISTILLERY LABOR UNION V. CIR [52 SCRA 307 (1973)] A closed shop provision in a CBA must not be given a retroactive effect so as to preclude its being applied to employees in the service (citing Confederated Sons of Labor v. 135. and. and (3) there is sufficient evidence to support the union’s decision to expel the employee from the union. V. INGUILLO ET. maintenance of membership shop – when employees who are union members as of the effective date of the agreement. A closed shop agreement that is allowed under the Industrial Peace Act should apply to persons to be hired or to employees who are not yet members of any labor organization. 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 of the recognized collective bargaining agent. INC. V. 282-285 of LC did not mention as ground the enforcement of the Union Security Clause in the CBA. for the duration of the agreement. SOBREVIÑAS [2nd Sem 2011-2012] 36 . CBA here has union shop and maintenance of membership shop provisions.Labor 2 Midterms Reviewer Art. 136." "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. AL. NLRC [149 SCRA 470 (1987)] Art 249 (e) of the Labor Code specifically recognizes the closed shop arrangement as a form of union security.” “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. if such non-union members accept the benefits under the collective bargaining agreement: Provided.

ALABANG COUNTRY CLUB V NLRC Enforcement of a union security clause in the CBA is another valid ground for termination of employment. "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. (2) the union is requesting for the enforcement of the union security provision in the CBA. reserves its right to accept or reject where they fail to meet its requirements. A closed shop provision may not justify the termination by the employer of an employee who is arbitrarily refused membership to the union without any reasonable ground. This practice strengthens the union and prevents disunity in the bargaining unit within the 138. Sec. but who. EX: As the GR is inconsistent with Art279 of the Labor Code as amended by RA 6715. etc. or those hired or employed subsequently thereto. hours of work and other terms and conditions of employment in order to encourage or discourage membership in any labor organization. Such agreement sanctioned under Industrial Peace Act. GREENFIELD V RAMOS (326 SCRA 428) While the union security clauses embodied in the CBA may be validly enforced and that dismissals pursuant thereto may likewise be valid. resign or are expelled therefrom. COVERAGE – WORKER INCLUSION AND EXCLUSION Art. To hold otherwise would render minority unions at a grave disadvantage and force their members to disaffiliate with them to join the majority union and render nugatory the right of employees to self-organization.) The EMPLOYER agrees not to have in its employ nor to hire any new employee or laborer unless he is a member of good standing of the UNION. however. GUIJARNO V CIR (52 SCRA 307) A closed shop provision in a CBA must not be given a retroactive effect so as to preclude its being applied to employees in the service… under the Industrial Peace Act it should apply to persons to be hired or to employees who are not yet members of any labor organization and not to those already in the service who are members of another union.” does not clearly state that maintenance of membership in the Union is a condition of continuous employment in the Company. Kapisanan ng mga Manggagawa ng Alak v Hamilton Distillery Co: In the absence of a manifest intent to the contrary. It shall be unlawful for an employer to commit any of the following unfair labor practice: e. plants. while they were members of respondent union. 1-d). docks. 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 of the recognized collective bargaining agent. 142. 143. 141. An employer is not considered guilty of unfair labor practice if it merely complied 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. INQUILLO V FIRST PHILS (68 SCRA 471) In terminating the employment of an employee by enforcing the Union Security Clause. the stipulation to this effect must be so clear and unequivocal as to leave no room for doubt thereon (eg. that the individual authorization required under Article 242. thereafter. if such nonunion members accept the benefits under the collective bargaining agreement: Provided. warehouses. 144. employees and all technical helps that the EMPLOYER may require. working therefor on or before said date. G. under a collective bargaining agreement.Labor 2 Midterms Reviewer The EMPLOYER agrees in all its branches. this. Freeman Shirt Mfg v CIR: A closed-shop agreement has been considered as one form of union security whereby only union members can be hired and workers must remain union members in good standing as a condition to continued employment. 248. Cases Cited in Guijarno: Confederated Sons of Labor v Anakan Lumber Co: Without a provision to the effect that the EEs must continue to remain members in good standing of respondent union to keep their jobs. provided such new employee or laborer meets the qualifications required by the EMPLOYER. (Article 1. Unfair labor practices of employers. where is adjudged. paragraph (o) of this Code shall not apply to the non-members of the recognized collective bargaining agent. The UNION agrees to furnish at all time the laborers. In order that an employer may be deemed bound. MALAYANG SAMAHAN V M. NATIONAL UNION OF WORKERS IN HOTELS V NLRC (567 SCRA 291) 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. except those employees who are already members of another union at the time of the signing of the collective bargaining agreement. SOBREVIÑAS [2nd Sem 2011-2012] 37 . EMPLOYER. “employees must continue to remain members in good standing of respondent union to keep their jobs…) 137. (Article VII. and (3) there is sufficient evidence to support the union's decision to expel the employee from the union or company. to dismiss employees for nonunion membership. To discriminate in regard to wages. quarries. the employer needs only to determine and prove that: (1) the union security clause is applicable. sec. F. and a bona fide holder of a UNION (NWB) card. 4. backwages and other benefits must be awarded from the date of the LA’s decision up to the time the order is actually carried out. units. 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. the company may not be ordered to grant either backwages or financial assistance in the form of separation pay as a form of penalty. OLVIDO V CA (536 SCRA 73) GR: When an employer merely complied 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 CBA. 139. 5. subsec. apply to persons to be hired or to employees who are not yet members of any labor organization. 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. does not erode the fundamental requirement of due process. MANILA CORDAGE CO V CIR (78 SCRA 398) The CBA provision stating that: “Both parties agree that all employees of the COMPANY who are already members of the UNION at the time of the signing of this AGREEMENT shall continue to remain members of the UNION for the duration of this AGREEMENT. however. a(4). IMPLEMENTATION – OBLIGATION AND LIABILITIES 140. the CBA does not establish a closed-shop proviso and therefore does not affect the right of the company to retain those already PROF. Sec.

1989) Art. INTERNATIONAL ACTIVITIES OF UNIONS Art. teach-ins. rural workers. 270. the employer needs only to determine and prove that: (1) the union security clause is applicable. as well as foreign organizations are strictly prohibited from engaging directly or indirectly in all forms of trade union activities without prejudice to normal contacts between Philippine labor unions and recognized international labor centers: Provided. without prior permission by the Secretary of Labor. organizing. HOLY CROSS A check-off is a process or device whereby the employer. which include the right to labor. (As amended by Section 29. 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. That said aliens are nationals of a country which grants the same or similar rights to Filipino workers. further. in cash or in kind. may exercise the right to self-organization and join or assist labor organizations of their own choosing for purposes of collective bargaining: Provided. 113. referenda. SOBREVIÑAS [2nd Sem 2011-2012] 38 . rallies. negotiation and administration of collective bargaining agreements. except: b. group of workers or any auxiliary thereof. consent elections. deducts union dues or agency fees from the latter's wages and remits them directly to the union. or other special assessments and extraordinary fees. and (3) there is sufficient evidence to support the union’s decision to expel the employee from the union. but quasi-contractual. or assisting union conventions. This prohibition shall equally apply to foreign donations. any form of participation or involvement in representation proceedings. 269. These requisites constitute just cause for terminating an employee based on the CBA’s union security provision. In terminating the employment of an employee by enforcing the union security clause. The legal basis of check-off is thus found in statute or in contract. in his own behalf or in behalf of any person. exceptions. including the mandatory reporting of the amounts of the donations or grants. representation elections. VII. managing. grants or other forms of assistance. seminars. "Trade union activities" shall mean: 1. other activities or actions analogous to the foregoing. and the like: Provided. All aliens. union elections. however. a resolution approved and adopted by a majority to the union members at a general meeting will suffice when the right to check-off has been recognized by the employer. Employer is bound to exercise caution in terminating the services of his employee especially so when it is made upon the request of a labor union pursuant to the CBA. natural or juridical. b. organization. 271. the projects or activities proposed to be supported. Applicability to farm tenants and rural workers. conferences and institutes. formation and administration of labor organization. the Secretary of Agrarian Reform shall exercise the powers and responsibilities vested by this Title in the Secretary of Labor. For union dues. or on prior authorization from its employees. deriving from the established principle that non-union employees may not unjustly enrich themselves by benefiting from employment conditions negotiated by the bargaining union. (2) the union is requesting for the enforcement of the union security provision in the CBA. 149. 1. 146. all forms of concerted union action. DEL PILAR ACADEMY V DEL PILAR ACADEMY EES UNION (553 SCRA 590) [PREVAILING DOCTRINE] The collection of agency fees in an amount equivalent to union dues and fees. organization or entity may give any donations. meetings. PART 4: PRECONDITIONS TO COLLECTIVE BARGAINING. c. Employers should therefore respect and protect the rights of their employees. 2. shall make any deduction from the wages of his employees. or other forms of assistance. grants or other forms of assistance. That in appropriate cases. in cases where the right of the worker or his union to checkoff has been recognized by the employer or authorized in writing by the individual worker concerned. the legal basis of the union's right to agency fees is neither contractual nor statutory. Statutory limitations on check-offs generally require written authorization from each employee to deduct wages. in relation to trade union activities. In this aspect. is recognized by Article 248(e) of the Labor Code No requirement of written authorization from the non-union employees is necessary if the non-union employees accept the benefits resulting from the CBA. H. Republic Act No. grants. 6715. That aliens working in the country with valid permits issued by the Department of Labor and Employment. Prohibition against aliens. APPROPRIATE BARGAINING UNIT AND MAJORITY STATUS A. Others (Sir’s Additional Cases) 145. 4. directly or indirectly. Art. FINANCIAL SECURITY – AGENCY SHOP Art. Wage deduction. such as cooperatives. Dismissals must not be arbitrary and capricious…Due process must be observed because it affects not only his position but also his means of livelihood . in cash or in kind. No employer. from employees who are not union members. credit unions and institutions engaged in research. 148. DEFINITION AND ROLE IN LAW PROF. The Secretary of Labor shall promulgate rules and regulations to regulate and control the giving and receiving of such donations. NATIONAL BREWERY V SAN MIGUEL BREWERY (8 SCRA 805) [SUPERSEDED] The fact whatever benefits the majority union obtains from the ER accrued to its members as well as to non-members alone does not justify the collection of agency fee from nonmembers. on agreement with the union recognized as the proper bargaining representative. and 6. however. CARIÑO V NLRC For the company to inquire into the lawfulness of the acts of the Union in this regard the expulsion of its members does NOT constitute interference in the administration of Union affairs. and their duration. including collection of reasonable assessments in connection with mandatory activities of the union. education or communication. to any labor organization. Regulation of foreign assistance. No foreign individual. 3.Labor 2 Midterms Reviewer duration of the CBA with the threat of expulsion from the union and consequent termination of employment the union gains more members and strengthens its position against other unions who may wish to claim majority representation. March 21. The provisions of this Title pertaining to foreign organizations and activities shall be deemed applicable likewise to all organizations of farm tenants. The benefits of a CBA are extended to all employees regardless of their membership in the union because to withhold the same from the non-members would be to discriminate against them. 147. the specific recipients thereof. APPROPRIATE BARGAINING UNIT 1. 5. given directly or indirectly to any employer or employer’s organization to support any activity or activities affecting trade unions.

CORPORATE ENTITIES 155. SAN MIGUEL CORP V LAGUESMA (236 SCRA 595) [HISTORY] The collective bargaining history of a company is not decisive of what should comprise the collective bargaining unit. Factors considered in determining proper bargaining unit: will of employees (Globe Doctrine). seasonal and probationary employees". SCOUTS VETERANS SECURITY AND INVESTIGATING AGENCY V TORRES (244 SCRA 682) 150. Inc. For this purpose. the dissimilarity in the nature of the work and duties as well as in the compensation and working conditions of the academic and non-academic personnel dictate the separation of these two categories of employees for purposes of collective bargaining. Republic Act No. or where a corporation is the mere alter ego or business conduit of a person. an individual employee or group of employees shall have the right at any time to present grievances to their employer. the employer shall continue to recognize the majority status of the incumbent bargaining agent where no petition for certification election is filed. Republic Act No. 255. which the collective interests of all the employees. when a verified petition questioning the majority status of the incumbent bargaining agent is filed before the Department of Labor and Employment within the sixty-day period before the expiration of the collective bargaining agreement. 157. best serve all the employees in the exercise of their bargaining rights. a proper bargaining unit maybe said to be a group of employees of a given employer.. agency. protect fraud. BENGUET CONSOLIDATED AND BALATOC MINING CO V BOBOK LUMBERJACK ASSOCN (103 PHIL 1150) [GEOGRAPHY] Prime element in determining whether a group of employees constitute a proper bargaining unit is whether it will. PHIL DIAMOND HOTEL AND RESORT V MANILA DIAMOND HOTEL EES UNION (494 SCRA 195) [SIZE –COMPOSITION] 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 (both the members and non-members of the union) in such unit for the purpose of collective bargaining. 156. 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. 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. (As amended by Section 23. 256. INDOPHIL TEXTILE MILLS WORKERS UNION V CALICA (205 SCRA 697) The fact that the businesses of private respondent and Acrylic are related. 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. PROF. and employment status. to participate in policy and decision-making processes of the establishment where they are employed insofar as said processes will directly affect their rights. that the total number of votes for all contending unions is at least fifty percent (50%) of the number of votes cast. However. March 21. offices and facilities are situated in the same compound. such as substantial similarity of work and duties or similarity of compensation and working conditions. conduit or adjunct of another corporation. March 21. and that the physical plants. 158. prior collective bargaining history. SOBREVIÑAS [2nd Sem 2011-2012] 39 . benefits and welfare. To have a valid election. or defend crime. is not a justification for disregarding their separate personalities. 1989) The dichotomy of interests. 2. 6715. 3. indicate to be best suited to serve reciprocal rights and duties of the parties under the collective bargaining provisions of the law. PHIL. 1989) Art. 152. DETERMINATION OF APPROPRIATE BARGAINING UNIT A. or when it is made as a shield to confuse the legitimate issues. When an election which provides for three or more choices results in no choice receiving a majority of the valid votes cast. UP V FERRER-CALLEJA (211 SCRA 451) [IN GENERAL – STANDARD TEST] The test of the grouping is community of mutuality of interests because 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. (As amended by Section 22. comprised of all or less than all of the entire body of employees. at least a majority of all eligible voters in the unit must have cast their votes. Representation issue in organized establishments. without inequity to the employer. such as temporary. justify wrong. that some of the employees of the private respondent are the same persons manning and providing for auxilliary services to the units of Acrylic. However. Any provision of law to the contrary notwithstanding. or where the corporation is so organized and controlled and its affairs are so conducted as to make it merely an instrumentality. BELYCA CORPORATION V CALLEJA According to Rothenberg. an individual employee or group of employees shall have the right at any time to present grievances to their employer. 153. 6715. DIATOGON LABOR FEDERATION V OPLE (101 SCRA 534) The fact that their businesses are related and that the 236 employees of Georgia Pacific International Corporation were originally employees of Lianga Bay Logging Co. 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. subject to such rules and regulations as the Secretary of Labor and Employment may promulgate. a run-off election shall be conducted between the labor unions receiving the two highest number of votes: Provided. LUCIA V SEC DOLE (596 SCRA 92) Employees in two corporations cannot be treated as a single bargaining unit even if the businesses of the two corporations are related.Labor 2 Midterms Reviewer Art. At the expiration of the freedom period. affinity and unity of employee's interest. Exclusive bargaining representation and workers’ participation in policy and decision-making. In organized establishments. The doctrine of piercing the veil of corporate fiction applies when the corporate fiction is used to defeat public convenience. it is our considered opinion that these facts are not sufficient to justify the piercing of the corporate veil of Acrylic. workers and employers may form labor-management councils: Provided. consistent with equity to the employer. workers shall have the right. Factors – Unit Determination 151. Separation between camps and the different kinds of work in each all militate in favor of the present system since the problem and interest of the worker are peculiar in each camp or department. STA. 154.

all PSVSIA Detachment Commanders were instructed to get in touch with the officers not only of PSVSIA but also of GVM and ASDA.Composition 165. DE LA SALLE UNIVERSITY V DE LA SALLE UNIVERSITY EES ASSOC (330 SCRA 363) Previous agreements do not bar any renegotiation for any future CBA. 134 SCRA 82 (85) The holding of a certification election is a statutory policy that should not be circumvented. 160. If a union asks the employer to voluntarily recognize it. and relying on the “globe doctrine” the employees in the Caloocan shop should be given a chance to vote on whether their group should be separated from that represented by the mechanical department labor union. 164. but for the purpose of permitting the employees in each of the several categories to select the group which each chooses as a bargaining unit. SAN MIGUEL EES UNION V CONFESSOR (262 SCRA 81) In determining an appropriate bargaining unit. During the freedom period. 2. and ordered a plebiscite held for that purpose. not for the purpose of allowing the group receiving an over all majority of votes to represent all employees. INC. GVM and ASDA employees have a single Mutual Benefit System and followed a single system of compulsory retirement.Labor 2 Midterms Reviewer The doctrine of piercing the corporate veil applies in this case as the three agencies in the case at bar failed to rebut the fact that they are (1) managed through the Utilities Management Corporation with all of their employees drawing their salaries and wages from said entity. a lot of changes having occurred in the work environment. if there is an existing union. the Globe Doctrine properly applies In view of its findings and the history of union representation in the railway company. direct certification has been discontinued as the method for selecting the exclusive bargaining agent. GENERAL RUBBER AND FOOTWEAR CORP V BUREAU OF LABOR RELATIONS (155 SCRA 283) Previous agreements preventing the monthly paid employees from joining the rank and file union or from forming their own union cannot bind subsequent unions from forming their bargaining units because it is a curtailment of their right to organize. these can be threshed out during the pre-election conferences. required skills. (3) that the PSVSIA.a practice designated as the "Globe doctrine. The fact that there are no competing Unions should not affect the freedom of choice (EEs can always choose ‘No Union’). 5. MECHANICAL DEPT LABOR UNION V CIR (24 SCRA 925) Considering the differences in functions. 3. the companies would consequently have their respective and distinctive concerns in terms of the nature of work. SOBREVIÑAS [2nd Sem 2011-2012] 40 . is a relocation motivated by antiunion animus rather than for business reasons. and that four of respondent’s officers are no longer connected with petitioner have no effect on the Court’s ruling that a certification election should be immediately conducted with respondent as one of the available choices. V. ASSOCIATED LABOR UNION. indicating that bargaining units had been formed through separation of new units from existing ones whenever plebiscites had shown the workers’ desires to have their own representatives. UNIT SEVERANCE AND GLOBE DOCTRINE – INDSUTRIAL/CRAFT UNIONS 161. KAPISANAN NG MANGGAGAWA SA MANILA RAILROAD CO V YARD CREW UNION RAILROAD ENG’G DEPT UNION (109 PHIL 113) Because of the modern complexity of the relation between both employer and union structure. 286 SCRA 692 (98) New union. 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. 162. 4.a certification which the employer has no authority to give for it is the employees' prerogative. Changes . SAMAHANG MANGGAGAWA SA PERMEX V. A “runaway shop” in this sense. COMPLEX ELECTRONICS V NLRC (310 SCRA 403) The mere fact that one or more corporations are owned or controlled by the same or single stockholder is not a sufficient ground for disregarding separate corporate personalities. Considering the spin-offs. it in effect asks the employer to certify it as its bargaining representative of the employees . could not be the exclusive bargaining representative by virtue of employer recognition. It becomes necessary to give consideration to the express will or desire of the employees . (4) that the security guards of one agency could easily transfer from one agency to another and then back again by simply filling-up a common pro forma slip called "Request for Transfer". (2) that the agencies have common and interlocking incorporators and officers. SECRETARY OF LABOR. wages. Interests of employees in the different companies perforce differ. It is one wherein the employer moves its business to another location or it temporarily closes its business for anti-union purposes. GEORGE AND PETER LINES. SAN MIGUEL CORP V SAN MIGUEL ETC (467 SCRA 107) The allegation that the bargaining unit that respondent sought to represent is no longer the same because of the dynamic nature of petitioner’s business. (6) In emergencies." which sanctions the holding of a series of elections. 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. If there are matters that have arisen since the filing of the petition that serve to delay or cancel the election. EFFECT PRIOR AGREEMENT 163. (5) always hold joint yearly ceremonies such as the "PGA Annual Awards Ceremony". 4. EFFECT ONE UNION ONLY 167. 159. not the employer's to determine whether they want a union to represent them. 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. community of interest and working conditions in Rolling Stones (Caloocan Shop) and those of the other units. By EO 111. the parties may not only renew the existing CBA but may also propose and discuss modifications or amendments thereto. PURPOSE PROF. it becomes difficult to determine from the evidence alone which of the several claimant groups forms a proper bargaining unit. EMPLOYER CERTIFICATION – EMPLOYER VOLUNTARY 166. hours of work and other conditions of employment. the test of grouping is mutuality or commonality of interests.

neither can they be compelled to exercise such a conferred right. claiming that under the law. 171.' The law did not reduce the Med-Arbiter to an automaton which can instantly be set to impulse by the mere filing of a PCE. 3. SECRETARY OF LABOR AND EMPLOYMENT. The fact that they did not participate in previous certification elections nor the fact that they are not members of any union does not deprive them of such right. Article 212(h) defines a legitimate labor organization as 'any labor organization duly registered with the DOLE and includes any branch or local thereof. Only legitimate labor organizations may file a petition for certification election. CALIFORNIA MANUFACTURING CORPORATION V. the establishment concerned must have no certified bargaining agent. affiliate with or assist any union and to disaffiliate or resign from a labor organization is subsumed in the right to join affiliate with or assist any union. Being merely an agent for the local organization. LOPEZ SUGAR CORPORATION V. probationary or permanent. T UNION AS INITIATING PARTY 170. The Code makes no distinction as to their employment status as basis for eligibility in supporting the petition for certification election. All bona fide employees possess such right. v. 247 SCRA 1 (95) While Article 257 directs the automatic conduct of a CE in an unorganized establishment. the local union remains the basic unit free to serve the interests of its members independently of the federation. and a "legitimate labor organization" as any labor organization duly registered with the DOLE. SAN MIGUEL CORPORATION." 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. Ferrer-Calleja: In a certification election. including any branch or local thereof. an organization which carries a mixture of rank-and-file and supervisory employees cannot possess any of the rights of a legitimate labor organization. DUNLOP V. The supervisors of ER in the case at bar which constitute a bargaining unit separate and distinct from that of the rank-and-file. are entitled to vote. He is still tasked to satisfy himself that all the conditions of the law are met. should also be a legitimate labor organization in good standing. when there is no existing unit yet in a particular bargaining unit at the time a PCE is filed. for he has considerable interest in the determination of who shall represent him in negotiating the terms and conditions of his employment. The said right includes the right to refuse and refrain from exercising such right. ER's insistence on the 25% subscription requirement is clearly immaterial. ATLANTIC GULF AND PACIFIC CO. LAGUESMA. the 25% rule on the signatories does not apply. SECRETARY OF LABOR. All they need to be eligible to support the petition is to belong to the "bargaining unit. The significance of an employee’s right to vote in a certification election cannot thus be overemphasized. SAN MIGUEL. 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 shall be the exclusive representative of the employees in such unit for purposes of collective bargaining. ETC. The law refers to "all" the employees in the bargaining unit. The same has been expressly deleted by Section 24 of Republic Act No. 209 SCRA 484 (92) The right not to join. RELIGION/PAST NON-PARTICIPATION 169. Union replied." A certification election is the process of determining the sole and exclusive bargaining agent of the employees in an appropriate bargaining unit for purposes of collective bargaining. at most. The issuance of the certificate of registration by the Bureau or Regional Office is not the operative act that vests legal personality upon a local/chapter under Department Order No. its right to file a petition for certification election cannot be questioned. that is. NATIONAL UNION OF WORKERS IN HOTELS. 173. V. 467 SCRA 107 (05) The Labor Code defines a labor organization as any union or association of employees which exists in whole or in part for the purpose of collective bargaining or of dealing with employers concerning terms and conditions of employment. Its failure to prove its affiliation with NAFLU-KMU will. which is the sole and exclusive bargaining agent of all the regular rank-and-file employees of the petitioner. DOLE. INC. CERTIFICATION ELECTION – PROCESS A. FREEDOM PERIOD 175. a labor organization composed of both rank-and-file and supervisory employees is no labor organization at all. 5. whether probationary or permanent. those with existing bargaining agents. TRAJANO. ETC. ER opposed. for any guise or purpose. Otherwise stated. as its principal. Inc. SOLE. it also requires that the PCE must be filed by an LLO. Not being one. the federation's bona fide status alone would not suffice. 212 SCRA 281 (92) ER has adopted the practice of hiring project EEs when existing fabrication capacity cannot absorb increases in job orders for steel structures and other heavy construction works. have a substantial interest in the selection of the bargaining representative. Such legal personality is acquired from the filing of the complete documentary requirements enumerated in Section 1. It cannot. all rank and file employees. 172. The local chapter. 1. Hence. 6715 and is presently prescribed only in organized establishments. Definition 174. ER executed a CBA with the URFA. Article 257 of the Labor Code is applicable to unorganized labor organizations and not to establishments where there exists a certified bargaining agent which had previously entered into a collective bargaining agreement with the management. ORGANIZED ESTABLISHMENT a. 209 SCRA 606 (92) Union filed PCE among supervisory EEs. all rank-and-file employees in the appropriate bargaining unit. B. Despite affiliation. saying that the petition does not have 25% support from bargaining unit. 300 SCRA 120 (98) Under Art.Labor 2 Midterms Reviewer 168. As a legitimate labor organization.MANILA PAVILION HOTEL CHAPTER V. RESTAURANTS AND ALLIED INDUSTRIES. MANILA. SOBREVIÑAS [2nd Sem 2011-2012] 41 . This principle is clearly stated in Art. Issue: WON CE should be held without showing of 25% support. Rule VI. Held: Yes. LAKAS-NFL filed PROF. REYES V. including the right to file a petition for certification election for the purpose of collective bargaining. have no such agent. and among the legal requirements is that the petitioning union must be a legitimate labor organization in good standing. be a legitimate labor organization. V. result in an ineffective affiliation. 290 SCRA 680 (98) Petitioner Union is an independently registered labor union. Just as anyone cannot be denied the exercise of a right granted by law. LAGUESMA. 9. 594 SCRA 787 (09) As held in Airtime Specialists. SAMAHANG V. 245.

if there is any doubt as to the required number having been met. In such a case. SUBSTANTIAL SUPPORT 1. COURT OF APPEALS (2004) ART. TODAY’S KNITTING V. he had no choice but to order such certification. The existence of a duly registered CBA between ER and URFA. The fact that the list of signatures is undated does not necessarily mean that the signatures were obtained prior to the 60-day period before the expiration of the existing collective bargaining PROF. is peculiar to petitions for certification election. NATIONAL MINES AND ALLIED WORKERS UNION V. and (3) a demand to bargain under Article 251. insofar as the representation aspect is concerned. All other provisions of the Collective Bargaining Agreement shall be renegotiated not later than three (3) years after its execution. what better way is there than the holding of a certification election to ascertain which union really commands the allegiance of the rankand-file employees. this Court voided such certification where there was a failure to properly determine with legal certainty whether the union enjoyed a majority representation. ST. The said provision does not apply to the filing of petitions for certification election where the place of work of the employees and the place of principal office of the employer are located within the territorial jurisdictions of different regional offices. paragraph (a). 256 and 257 does it appear that a motion for intervention in a certification election must be accompanied by a similar written consent. E. V. There is no basis for the contention that a duty is cast on the Director to allow a rival labor organization to verify the authenticity of such signatures. Rule V. Rule V. GENERAL MILLING CORPORATION V. The law mandates that the representation provision of a CBA should last for five years. Generally. FERRER-CALLEJA (1989) The reason behind the 20% requirement is to ensure that the petitioning union has a substantial interest in the representation proceedings and that a considerable number of workers desire their representation by the said petitioning union for collective bargaining purposes. The relation between labor and management should be undisturbed until the last 60 days of the fifth year. claiming that the project employees sought to be represented by LAKAS-NFL have been regularized and are deemed included in the existing CBA with URFA. Hence. A petition for certification election shall be filed with the Regional Office which has jurisdiction over the principal office of the Employer.. The 20% requirement. C. PHILIPPINE ASSOCIATION OF FREE LABOR UNIONS V. of the New Labor Code. Issue: WON PCE should be granted.. which is the sole and exclusive bargaining representative of all the regular rank-and-file employees of the ER. be for a term of five (5) years. The petition shall be in writing and under oath. JAMES SCHOOL (2005) FORM OF PETITION – SIGNATURE VERIFICATION AND VERIFICATION OF PLEADINGS 178. – Any Collective Bargaining Agreement that the parties may enter into shall. F. ER appealed. The word "jurisdiction" as used in said provision refers to the venue where the petition for certification must be filed. CRUZ VALLE INC. Held: No. and this rule is specifically applied in certification election proceedings. which are non-litigious but merely investigative and non-adversarial in character. Not even in the Implementing Rules of the Labor Code. 177. namely. 253-A. SECRETARY OF LABOR (1993) Verification of a pleading is a formal. technical and rigid rules of procedure are not binding in labor cases. VENUE 176. JAMES SCHOOL V. it becomes mandatory on the part of the Med-Arbiter to order the holding of a certification election in an unorganized establishment. The Director having himself that the codal requisite had been met. bars any other labor organization from filing a petition for certification election except within the 60-day period prior to the expiration of the Collective Bargaining Agreement. SOBREVIÑAS [2nd Sem 2011-2012] 42 . Nowhere in ARTS.. 179. NORIEL (1977) What is required is that the petition for certification election should have in its favor "the written consent of at least 30% of all the employees in the bargaining unit”. CALLEJA (1989) We have previously held that the mechanics of collective bargaining are set in motion only when the following jurisdictional preconditions are present. not jurisdictional requisite. 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. Section 1. the courts may dispense with the requirement in the interest of justice and order of correction of the pleading accordingly. It bears mention that even in cases where it was the then Minister of Labor himself who directly certified the union as the bargaining representative. D. the mere fact that 20% of the workers in the bargaining unit signify their support to the petition by their written consent. SAMAHANG MANGGAGAWA NG ST. RATIONALE AND COMPUTATION 181.Labor 2 Midterms Reviewer a PCE and was granted. thereof. 182. the holding of a certification election at a proper time would not necessarily be a mere formality as there was a compelling reason not to directly and unilaterally certify a union. LAGUESMA (1994) Section 1. The duty then cast on the Detector of Labor Relations is to ascertain whether there has been such a compliance. At any rate. (2) proof of majority representation. There is no doubt in this case there was evidence that more than a total of two-hundred signatures were obtained by respondent Union in seeking such a certification election. 180. (1) possession of the status of majority representation by the employees' representative in accordance with any of the means of selection and/or designation provided for by the Labor Code. Book V of the Omnibus Rules Implementing the Labor Code refers only to cases where the place of work of the employees and the place of the principal office of the employer are within the same territorial jurisdiction of the Regional Office where the petition for certification election is filed. Even if verification is lacking and the pleading is formally defective. Book V of the Omnibus Rules Implementing the Labor Code: Where to file. Terms of a collective bargaining agreement. WHEN APPLIED agreement. ASSOCIATED LABOR UNION V. What is important is that the petition for certification election must be filed during the freedom period and that the 25% requirement of supporting signatures be met upon the filing thereof.

After all. WESTERN AGUSAN WORKERS UNION LOCAL 101 OF THE UNITED LUMBER AND GENERAL WORKERS OF THE PHILIPPINES VS. MOTION INTERVENTION 184. TAGAYTAY HIGHLANDS EMPLOYEES UNION (2003) Regarding the alleged withdrawal of union members from participating in the certification election. Rule V. the administrative rule requiring the simultaneous submission of the 25% consent signatures upon the filing of petition for certification election should not be strictly applied to frustrate the determination of the legitimate representative of the workers. SOBREVIÑAS [2nd Sem 2011-2012] 43 . of which it has intimate knowledge. Rule V. BUT where the petition is supported by less than 30% (now 20%) the BLR has discretion whether or not to order the holding of certification election depending on the circumstances of the case. a petition for certification election or a motion for intervention can only be entertained within sixty (60) days prior to the expiry date of such agreement. PORT WORKERS UNION OF THE PHILIPPINES V. SUBMISSION 185. EFFECT WITHDRAWAL 187.” The filing of a petition for certification election during the 60-day freedom period gives rise to a representation case that must be resolved even though a new CBA has been entered into within that period. AIRTIME SPECIALISTS.’ Suffice it to say that the will of the rank-and-file employees should in every possible instance be determined by secret ballot rather than by administrative or quasi-judicial inquiry. the Director (now the Med-Arbiter) is still empowered to order that it be held precisely for the purpose of ascertaining which of the contending labor organizations shall be the exclusive collective bargaining agent. according to the rulings of this Tribunal. A dismissed employee whose dismissal is being contested in a pending case shall be allowed to vote in the election. LAGUESMA (1992) The certification election is the most democratic and expeditious method by which the laborers can freely determine the union that shall act as their representative in their dealings with the establishment where they are working. This is all the more reason why the regulation should at best be given only a directory effect. 189. COMPLIANCE 183. TRAJANO (1991) The policy of the Labor Code is indisputably partial to the holding of a certification election so as to arrive in a manner definitive and certain concerning the choice of the labor organization to represent the workers in a collective bargaining unit. DIRECTOR OF BUREAU OF LABOR RELATIONS PURA FERRER-CALLEJA (1990) Compliance with the 30% requirement (now 20%) makes it mandatory upon the BLR to order the holding of a certification election in order to determine the exclusive-bargaining agent of the employees. HON. the Court recognized that the Bureau of Labor Relations in the exercise of sound discretion. Such representation and certification election cases are not to be taken as contentious litigations for suits but as mere investigations of a nonadversary. ought to be ordinarily exercised in favor of a petition for certification. the requirement in the rule is not found in Article 256. their votes shall be segregated and sealed in individual envelopes in accordance with Section 9 of these Rules. 5. Book V of the Omnibus Rules) 2. this Court’s following ruling is instructive: “’*T+he best forum for determining whether there were indeed retractions from some of the laborers is in the certification election itself wherein the workers can freely express their choice in a secret ballot. As long as the motion for intervention has been properly and timely filed and the intervention would not cause any injustice to anyone. may order a certification election PROF. all contested voters shall be allowed to vote. the law it seeks to implement. Rule XII. 186. it should not be denied and this is so even if the eventual purpose of the Motion for Intervention is to participate in the Certification Election. The Court has consistently ruled that "even conceding that the statutory requirement of 30% (now 25%) of the labor force asking for a certification election had not been strictly compiled with. In line with the policy.” 6. INC. fact-finding character as to which of the competing unions represents the genuine choice of the workers to be their sole and exclusive collective bargaining representative with their employer. the mere filing of a petition for certification election within the freedom period is sufficient basis for the issuance of an order for the holding of a certification election. Section 3. It means that the Bureau is left without any discretion but to order the holding of certification election. 256 and 257 that the requisite written consent of at least 20% of the workers in the bargaining unit applies to petitioners for certification election only and not to motions for intervention. TAGAYTAY HIGHLANDS INTERNATIONAL GOLF CLUB V. (Section 2.” Accordingly. However. the same does not affect the petition for certification election filed by another union. 4. In all other instances. The requirement then is relevant only when it becomes mandatory to conduct a certification election. the original applicant had already met the 20% requirement. The holding of a certification election is a statutory policy that should not be circumvented. LAGUESMA (1992) The 25% subscription is presently prescribed only in organized establishments. Conformably to said basic concept. PORT WORKERS UNION OF THE PHILIPPINES V. 8 subject to the submission of the consent signatures within a reasonable period from such filing. ORIENTAL TIN CAN LABOR UNION V. Accordingly.Labor 2 Midterms Reviewer All employees who are members of the appropriate bargaining unit sought to be represented by the petitioner at the time of the certification or consent election shall be qualified to vote. Significantly. LAGUESMA (1992) It is crystal clear from Arts. that is. SECRETARY OF LABOR (1998) Article 253-A of the Labor Code explicitly provides that the aspect of a union’s representation of the rank-and-file employees contained in the CBA shall be for a term of five (5) years and that “(n)o 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. Compliance with the said requirement need not even be established with absolute certainty. This is clearly provided for in the aforequoted Section 4. DISCRETION RULE APPLICATION 188. CALIFORNIA MANUFACTURING CORPORATION V. VS. 3. Even if an agreement has been prematurely signed by the union and the company during the freedom period. the discretion. Book V of the Omnibus Rules Implementing the Labor Code provides that “(i)f a collective bargaining agreement has been duly registered in accordance with Article 231 of the Code. Book V of the Omnibus Rules Implementing the Labor Code. those with existing bargaining agents. In case of disagreement over the voters’ list or over the eligibility of voters.

257 of the Labor Code. a certification election 195. SECRETARY OF DOLE The employer may voluntarily recognize the representation status of a union only in unorganized establishments. Petitions in unorganized establishments. 9481.A. STA. – When requested to bargain collectively. a certification election shall automatically be conducted by the Med-Arbiter upon the filing of a petition by a legitimate labor organization. Article 257 of the Labor Code provides that in any establishment where there is no certified bargaining agent. REPUBLIC VS. LAGUESMA (1992) Article 257 of the Labor code is applicable to unorganized labor organizations and not to establishments where there exists a certified bargaining agent which had previously entered into a CBA with the management. LUCIA EAST COMMERCIAL CORP. 258-A. however. under Section 12 of R. 212. (h) “Legitimate labor organization” means any labor organization duly registered with the Department of Labor and Employment. (As amended by Section 24. March 21. – In all cases. 1989) Art. filed the petition for certification election. 6715. When an employer may file petition. 9481 into the Labor Code. a new provision. not by the employees. Employer as Bystander. In this case. VS. after hearing. The Bureau shall conduct a certification election within twenty (20) days in accordance with the rules and regulations prescribed by the Secretary of Labor. (In this case. 190. nothing herein shall restrict the right of the union to seek just and equitable remedies in the appropriate courts. shall automatically be conducted by the Med-Arbiter upon the filing of a petition by a legitimate labor organization. PROF. order a certification election. The employer’s participation in such proceedings shall be limited to: (1) being notified or informed of petitions of such nature. SUGBUANON RURAL BANK. b. 9481. No. LAGUESMA (2000) One of the rights of a legitimate labor organization under Article 242(b) of the Labor Code is the right to be certified as the exclusive representative of all employees in an appropriate bargaining unit for purposes of collective bargaining. 9481 lapsed into law. The petition for certification election may be filed by any union. SECRETARY OF DOLE (2009) In petitions for certification election. whether the petition for certification election is filed by an employer or a legitimate labor organization. treats the employer merely as a bystander. STA. – In any establishment where there is no certified bargaining agent. Article 258-A. VS. If there is no existing certified collective bargaining agreement in the unit. employers have no personality to interfere with or thwart a petition for certification election filed by a legitimate labor organization. LAGUESMA (1992) Even if the petition for certification election does not carry the authorization of a majority of the rank-and file employees. inserted by Section 12 of R. 2. Rights of legitimate labor organizations. Consequently. a. Since no certified bargaining agent represented the supervisory employees. the Bureau shall. Definition 191. SOBREVIÑAS [2nd Sem 2011-2012] 44 .A. subsequent negotiations and registration of a CBA executed by SLECC with SMSLEC are void and could not bar CLUP-SLECCWA’s petition for certification election. – (e) “Employer” includes any person acting in the interest of an employer. Mandatory Election 194. – A legitimate labor organization shall have the right: (b) To be certified as the exclusive representative of all the employees in an appropriate bargaining unit for purposes of collective bargaining. 257. PT&T may be deemed an unorganized establishment within the purview of Art. LUCIA EAST CORP. states in express terms that the employer has no right to oppose a petition for certification election “in all cases. VS. Art. Art. which provides that “a petition for cancellation of union registration shall not suspend the proceedings for certification election nor shall it prevent the filing of a petition for certification election. VS. 193. Otherwise stated. 257 provides that said election should be automatically conducted upon filing of the petition. Definitions. is still unorganized. CELINE MARKETING CORP. THE EMPLOYER AS INITIATING PARTY Art. their consent is not necessary when the bargaining unit that the union seeks to represent. VS. Thus. All certification cases shall be decided within twenty (20) working days. 196. the establishment concerned must have no certified bargaining agent for the employees concerned. Republic Act No. In this case.A No. ETC. The best forum for determining whether there were indeed retractions from some of the laborers is the certification election itself wherein the workers can freely exercise their choice in a secret ballot. KAWASHIMA TEXTILE. CLUP-SLECC and its Affiliates Workers Union constituted a registered labor organization at the time that SLECC voluntarily recognized SMSLEC. the date of effectivity of R. UNORGANIZED ESTABLISHMENT Art. 242. Article 257 of the Labor Code mandates that a certification election shall automatically be conducted by the Med-Arbiter upon the filing of a petition by a legitimate labor organization. 9481 inserted Article 238-A to the Labor Code. serious doubts exist whether WAWU-ULGWP-Local 101 still represents the majority of the rank-and-file employees at the employer corporations.A. and (2) submitting the list of employees during the preelection conference should the Med-Arbiter act favorably on the petition. The term shall not include any labor organization or any of its officers or agents except when acting as employer. B. (2008) R. Article 258-A. LAGUESMA (1993) The supervisory employees of PT&T did not yet have a certified bargaining agent to represent them at the time the Union. PHILIPPINE TELEGRAPH AND TELEPHONE CORP. 192.” Furthermore. CALIFORNIA MANUFACTURING CORP. 212. 258. 2007. (SLECC) VS. A. the employer is a mere bystander and cannot oppose the petition or appeal the MedArbiter’s decision. the Med-Arbiter correctly granted the petition for certification election among the supervisory employee of petitioner PT&T because Art. the employer shall not be considered a party thereto with a concomitant right to oppose a petition for certification election. directly or indirectly. Thus. The exception to this rule happens only when the 1 employer is requested to bargain collectively.) 1 GOOD LAW: Article 258-A has trumped this exception. No.” The provision was not applied in this case because the controversy arose about six years before R. Nothing is said therein that prohibits such automatic conduct of the certification election if the management appeals on the issue of the validity of the union’s registration. No.Labor 2 Midterms Reviewer notwithstanding the failure to meet the 30% requirement. the petition for certification election was filed years before June 14. In case of cancellation. which is legitimate labor organization duly registered with the DOLE. No. an employer may petition the Bureau for an election. Art. INC. Definitions. and includes any branch or local thereof. whether the petition for certification is filed by an employer or a legitimate labor organization.

however. delegate and relinquish his arbitrational prerogatives in favor of a private person or entity or to a federation of trade unions. the holder of the third key PROF. Effect Private Agreement 200. the description of the bargaining unit and the list of eligible voters. it has no right or material interest to assail the certification election. 256. TITAN MEGABAGS INDUSTRIAL CORP. SECTION 4. be considered parties thereto with an inalienable right to oppose it. When an employer may file petition. The interested party may. Representation issue in organized establishments. If there is no existing certified collective bargaining agreement in the unit. — The Representation Officer may rule on any on-the-spot question arising from the conduct of the election. that the total number of votes for all contending unions is at least fifty percent (50%) of the number of votes cast. — The filing of a motion to postpone shall not stay the holding of the election. (Any agreement to refer a dispute to another body for settlement is not allowed) 201. SECTION 6. Certifical election and run-off – process and procedure Art. – When requested to bargain collectively. SECTION 2. Petitions in unorganized establishments. If not formalized within the prescribed period. the Court should not interfere with the discretion of the CIR (now BLR) in connection with such proceedings. the Bureau shall. Conduct of an election. At the expiration of the freedom period. — When the protest is formalized before the Med-Arbiter within five (5) days after the close of the election proceedings. Nature 199. The Bureau shall conduct a certification election within twenty (20) days in accordance with the rules and regulations prescribed by the Secretary of Labor. YOUNG MEN LABOR UNION STEVEDORES VS. 1989) Art. Republic Act No. If more than one union is involved. 6715. Protection to labor and freedom of peaceful assembly and association are guaranteed by the Constitution. After the examination of the ballot box. order a certification election. an employer may petition the Bureau for an election. March 21. SECTION 5. 1989) Art. after hearing. LAGUESMA (2004) Unless it filed a petition for a certification election pursuant to Article 258 of the Labor Code. Motion to postpone does not stay election. deplorable and censurable renunciation of the Director's adjudicatory jurisdiction in representation cases. The notices shall contain the date of election. The determination of the proceedings does not entail the entry of remedial orders or redress of rights. the Representation Officer shall lock it with three keys one of which he shall keep and the rest forthwith given one each to the employer's representative and the representative of the labor organization. (As amended by Section 23. the Representation Officer shall inspect the polling place. Representation officer may rule on any on-the-spot questions. To have a valid election. NOTRE DAME VS. and that the conduct of such proceedings should be expedited as much as possible. The Labor Code states that any party to an election may appeal the decision of the med-arbiter. which is the sole concern of the workers. – In any establishment where there is no certified bargaining agent. they should not. — The election shall be set during the regular business day of the company unless otherwise agreed upon by the parties. when a verified petition questioning the majority status of the incumbent bargaining agent is filed before the Department of Labor and Employment within the sixty-day period before the expiration of the collective bargaining agreement. names of the contending parties. — Before the actual voting commences. – In organized establishments.Labor 2 Midterms Reviewer 197. however. but culmination solely in an official designation of bargaining units and an affirmation of the employees’ expressed choice of bargaining agent. at least a majority of all eligible voters in the unit must have cast their votes. the Med-Arbiter shall decide the same within twenty (20) working days from the date of its formalization. SOBREVIÑAS [2nd Sem 2011-2012] 45 . Protest to be decided in twenty (20) working days. the employer is a bystander. All certification cases shall be decided within twenty (20) working days. (As amended by Section 24. Election conducted during regular business day. the employer has no standing to question the election. 257. a certification election shall automatically be conducted by the Med-Arbiter upon the filing of a petition by a legitimate labor organization. 198. — The Regional Division shall cause the necessary posting of notices at least five (5) working days before the actual date of election in two most conspicuous places in the company premises. While employers may rightfully be notified or informed of petitions of such nature. NATURE OF PROCEEDING A. SMC QUARRY WORKERS UNION VS. a run-off election shall be conducted between the labor unions receiving the two highest number of votes: Provided. 258. the ballot boxes and the polling booths to insure secrecy of balloting. Election – Mechanics of process RULE VI Election SECTION 1. CIR (1965) The object of the proceedings is not the decision of any alleged commission of wrong nor asserted deprivation of rights but is merely the determination of proper bargaining units and the ascertainment of the will and choice of the employees. When an election which provides for three or more choices results in no choice receiving a majority of the valid votes cast. It is a fundamental postulate that the win of the majority if given expression in an honest election with freedom on the part of the voters to make their choice. Considering that certification proceedings are investigatory in nature. 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. when a petition for certification election is filed by a legitimate labor organization. PLUM FEDERATION OF INDUSTRIAL AND AGRARIAN WORKERS V NORIEL (1982) Certification election (vis-à-vis the referring of cases to a different body to settle disputes as in this case) is the fairest and most effective way of determining which labor organization can truly represent the working force. The parties shall be given opportunity to witness the inspection proceedings. Republic Act No. ILAW AT BUKLOD NG MANGGAGAWA V DIRECTOR (1979) The Labor Code never intended that the Director of Labor Relations should abdicate. The decision may be appealed to the Bureau in the same manner and on the same grounds as provided under Rule V. Petitioner-employer was not such a party to the proceedings. SECTION 3. but a stranger which had no right to interfere therein. 6715. March 21. file a protest with the Representation Officer before the close of the proceedings. Thus. it is good policy of the employer not to have any participation or partisan interest in the choice of the bargaining representative. the employer shall continue to recognize the majority status of the incumbent bargaining agent where no petition for certification election is filed. is controlling. 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. at least in the absence of clear and patent abuse. Such protests shall be contained in the minutes of the proceedings. 4. a. B. the protest shall be deemed dropped. Protests not so raised are deemed waived. Duties of Representation Officer. Such a surrender of official functions is an anomalous. (2004) In certification elections.

Waiver 202. being the real parties-in-interest. ST. They are forbidden from influencing or hampering the employees’ rights under the law. also. Posting notice c. 203. However. (d) The ballots. RULE VII Challenges and Run-Offs SECTION 1. Marking and canvassing of votes. upon receipt of the results of the election and no protest having been filed. may question their removal from the voters’ list. The Representation Officer shall indicate on the envelope the name of the challenger and the ground of the challenge. 21. in such a manner as to create doubt or confusion or identify the voter. 204. the Med-Arbiter cannot direct the employer to furnish him/her with the list of eligible voters pending the resolution of the appeal. These envelopes shall remain sealed under the custody of the Representation Officer until after the Med-Arbiter has finally certified the winner. whether affirming or denying the appeal. that the total number of votes for all contending unions is at least fifty (50%) percent of the number of votes cast. it shall be considered spoiled. the date when the Order of the Secretary of Labor and Employment. Said labor unions were given an opportunity to make their comments and observations on the list of workers contained in the payroll and to ask or suggest the inclusion or exclusion of names therein or therefrom.Labor 2 Midterms Reviewer shall be determined by drawing of lots. (f) The union which obtained a majority of the valid votes cast by the eligible voters shall be certified as the sole and exclusive bargaining agent of all the workers in the appropriate unit. 212 (f). Preparation of ballots. the votes cast shall be counted and tabulated by the Representation Officer in the presence of the representatives of the parties. in order to have a valid election. the Representation Officer shall give each representative a certification of the result of the election and minutes of the concluded election. X x x The filing of an appeal to the SOLE from the Med-Arbiter’s Order stays its execution. They should not in any way affect. (b) If a ballot is challenged on valid grounds. and certification of the results. The provisions of the Labor Code relating to the conduct of certification elections were enacted precisely for the protection of the right of the employees to determine their own bargaining representative. the holding of a certification election by the mere convenience of filing an appeal with the labor secretary. SECTION 8. Voting list and voters PROF. their votes shall be segregated and sealed in individual envelopes in accordance with Section 9 of these Rules. for the guidance of worker-voters. at least a majority of all eligible voters in the bargaining unit must have cast their votes. a quorum existed in the certification election. X x x The motor pool. "Employee" includes any person in the employ of an employer. the 149 qualified voters should be used to determine the existence of a quorum. If the voter inadvertently spoils a ballot. in accordance with Sec. if any. Challenging of votes. and rationally. but. together with the minutes of the election. construction and transportation employees of the Tandang Sora campus had 149 qualified voters at the time of the certification election. JISSCOR INDEPENDENT UNION V TORRES (1993) Grounds of a protest may be filed on the spot or in writing with the representation officer and shall be contained in the minutes of the proceedings. However. V SEC DOLE (2009) The period of reckoning in determining who shall be included in the list of eligible voters is. shall be sealed in an envelope and signed outside by the Representation Officer and by representatives of the contending parties. Protests not so raised are deemed waived. — When an election which provides for three (3) or more choices results in no choice receiving a majority of the valid votes cast. Provided. and their motions for reconsideration were denied by the Court en banc. Since a majority or 84 out of the 149 qualified voters cast their votes. or defaced. JAMES SCHOOL V SAMAHANG MANGGAGAWA SA ST. SECTION 7. as the basis for determining who are qualified to votes subject to the approval of the lower court. The term shall not be limited to the employees of a particular employer. the Representation Officer shall segregate it from the unchallenged ballots and seal it in an envelope. although two (2) other labor unions and the Company did so. much less stay. Voters all employees Art. The court issued the corresponding order for the holding of the election and made its ruling on the question as to who were qualified to vote. becomes final and executory. This Court would be the last agency to support an attempt to interfere with a purely internal affair of labor. ACOJE WORKERS UNION V NATIONAL MINES &ALLIED WORKERS UNION (1963) The labor unions concerned agreed. he shall return it to the Representation Officer who shall destroy it and deliver him another ballot. There is no merit in the argument that the non-posting of the notice of the certification election as prescribed misled and confused the workers regarding the mechanics of the election. — (a) Any vote may be challenged for a valid cause by any observer before the voter has deposited his vote in the ballot box. all contested voters shall be allowed to vote. It shall include any individual whose work has ceased as a result of or in connection with any current labor dispute or because of any unfair labor practice if he has not obtained any other substantially equivalent and regular employment. (e) The Med-Arbiter. shall certify the winner. (c) As soon as the polls close. to the use of the Company payroll of March31. Run-off election. not only to the holding of the aforementioned election. NOTRE DAME V LAGUESMA (2004) Only the employees themselves. unless the Code so explicitly states. and petitioner did not move for a reconsideration of said ruling. Petitioner's representative then stated that it would abide by whatever ruling the court may make on the matter of inclusion and exclusion of voters. 1961. petitioner may no longer contest the accuracy of the aforementioned voters' list. If only one union is involved. SECTION 2. the voter shall make his cross or check in the square indicating "Yes" or "No". Hence. Upon completion of the canvassing. Hence. in cases where a timely appeal has been filed from the Order of the Med-Arbiter. 205. (b) If a ballot is torn. the representation officer shall motu proprio conduct a run-off election within five (5) calendar days from the close of the election between the labor unions receiving the two highest number of votes. 206. NATIONAL UNION OF WORKERS IN HOTELS. The ballots in the run-off election shall provide for two choices receiving the highest and the second highest number of the votes cast. — (a) The voter must write a cross (x) or a check (/) in the square opposite the union of his choice. Employers are strangers to these proceedings. JIU is estopped from raising that issue for it signed an agreement with JISSCOR to waive the mandatory 5 days posting of election notices d. — Ballots shall be prepared in Filipino and English along with a translation in the local dialect. and no objections or challenges have been presented which if sustained might change the results. marked. The key shall remain in the possession of the Representation Officer and the parties during the proceedings and thereafter until all the controversies concerning the conduct of the election shall have been definitely resolved. tally sheets. SOBREVIÑAS [2nd Sem 2011-2012] 46 . b. e. JAMES (2005) In case of disagreement over the voters’ list or over the eligibility of voters.

v. 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. The records further show that during the preelection conference the contending parties agreed that the election should be conducted on May 21.Labor 2 Midterms Reviewer to be no unwarranted reduction in the number of those taking part in a certification election. In organized establishments. rendering the Med-Arbiter’s August 22. Torres. it is now well-settled that employees who have been improperly laid off but who have a present. and to repeat. 209. if the dismissal is under question. When an election which provides for three or more choices results in no choice receiving a majority of the valid votes cast. 208. AIRTIME SPECIALISTS V DIRECTOR BLR (1989) In a certification election all rank-and-file employees in the appropriate bargaining unit are entitled to vote. Secretary of Labor and Employment. manifest steadfast adherence to the concept of industrial democracy. BARRERA V CIR (1981) Moreover. All they need to be eligible to support the petition is to belong to the “bargaining unit” 210. To have a valid election. V SEC DOLE (2009) In the present case. 213. and not just to determine which union won the elections. Rule VI Book V. At the expiration of the freedom period. Therefore. perhaps have affected the actual performance of works by some employees. which speaks of the labor organizations 'designated or selected for the purpose of collective bargaining by the majority of the employees in an appropriate collective bargaining unit [be the exclusive] representative of all the employees in such unit for the purpose of collective bargaining. The Code makes no distinction as to their employment status as basis for eligibility in supporting the petition for certification election. Because. 211 SCRA 95 (1992): At any rate. by virtue of a pending unfair labor practice case. at least a majority of all eligible voters in the unit must have cast their votes. the same is devoid of merit. there is PROF. a run-off election shall be conducted between the labor unions receiving the two highest number of votes: Provided. f. Art. unabandoned right to or expectation of re-employment." 211. 1986. 2006 in compliance with the directive of the Med-Arbiter after the appeal and subsequent motion for reconsideration have been denied by the SOLE. the employees concerned could still qualify to vote in the elections. which may take some time. for purposes of self-organization. (As amended by Section 23. Thus. 1989) 207. As much as possible then. legally remain as such. X x x The true importance of ascertaining the number of valid votes cast is for it to serve as basis for computing the required majority. March 21. V LAGUESMA (1993) As held in the case of Philippine Fruits and Vegetables Industries. that the total number of votes for all contending unions is at least fifty percent (50%) of the number of votes cast. including Gatbonton. when a verified petition questioning the majority status of the incumbent bargaining agent is filed before the Department of Labor and Employment within the sixty-day period before the expiration of the collective bargaining agreement. No law. 256. the day the certification election was held. the respondent Director ruled: Furthermore. Representation issue in organized establishments. some of those who are employees could possibly lose such status. thus. This was in accordance with Section 2. CONFEDERATION OF CITIZENS LABOR UNIONS V NORIEL (1980) For the integrity of the collective bargaining process to be maintained and. 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. dismissed employees are eligible or qualified voters. the employees of petitioner who participated in the strike. VOTING DAY 215. even under the guise that in the meanwhile. ASIAN DESIGN AND MANUFACTURING CORP V CALLEJA (1989) In answer to petition's contention that there being a strike on May 21. in light of the discussion above. but did not necessarily make said date an irregular business day of the company to go against the aforesaid Rule. SOBREVIÑAS [2nd Sem 2011-2012] 47 . 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. is there not in the posture taken by petitioner a contravention of what is expressly set forth in the Industrial Peace Act. deemed eligible to vote. of the IRR of the Labor Code which explicitly provides that “The election shall be set during the regular business day of the company unless otherwise agreed upon by the parties. NATIONAL UNION OF WORKERS IN HOTELS. TRANSPORT CO. have a substantial interest in the selection of the bargaining representative. REYES V TRAJANO Failure to take part in previous elections is no bar to the right to participate in future elections. and rightly so. until either the motion to declare their employment status legally terminated or their complaint for illegal dismissal is resolved by the NLRC. EASTLAND MANUFACTURING CO. 212.” The alleged strike and/or picketing of some employees at the company's premises which coincided with the actual conduct of certification election might. probationary or permanent. Effect non-participation previous election 214. All employees can participate [in certification election]. anent complainant's contention that the certification election was conducted not on regular business day. YOKOHAMA TIRES PHILIPPINES V YOKOHAMA EMPLOYEES UNION (2007) Even the new rule has explicitly stated that without a final judgment declaring the legality of dismissal. 2007 Resolution (denying the motion for reconsideration of the January 22 Order denying the appeal). were included in the list of employees in the bargaining unit submitted by the Hotel on May 25. all rank-and-file employees. not only some of them. are eligible to vote in certification elections. V NORIEL (1982) The plain language of the law certainly is controlling. The law refers to “all” the employees in the bargaining unit. said day cannot be considered a regular business day. 1986 which was. the employer shall continue to recognize the majority status of the incumbent bargaining agent where no petition for certification election is filed. The employer has no right to interfere in the election and is merely regarded as a bystander (Divine Word University of Tacloban v. R. a determined regular business day of the company. 6715. Inc. administrative rule or precedent prescribes forfeiture of the right to vote by reason of neglect to exercise the right in past cases. 213 SCRA 759 [1992]).' The law clearly contemplates all the employees. those employees are. all the workers of a collective bargaining unit should be given the opportunity to participate in a certification election. Republic Act No. on that time. as in the case now at bar whereby a case of illegal dismissal and/or unfair labor practices was filed. 2005 Order final and executor 10 days after the March 22. records show that the probationary employees. Hence.

They must be deemed to have forfeited their right to impugn the results of the election. SECRETARY OF LABOR 290 SCRA 680 (98) Petitioner is an independently registered labor union as evidenced by a Certificate of Registration. (As amended by Section 25. was filed outside the reglementary period. their failure to follow strictly the procedural technicalities regarding the period for filing their protest should not be taken against them. Rule V of the Implementing Rules of Book V of the Labor Code. Following Section 4. NATIONAL UNION V. the employees were prevented from making an intelligent and independent choice. was ever presented against the election. the union obtaining the majority of the valid votes cast by the eligible voters shall be certified as the sole and exclusive bargaining agent of all the workers in the appropriate bargaining unit. majority of the bargaining unit must have voted AND the winning union must have garnered majority of the valid votes cast. Section 10. Such appeal shall be decided within fifteen (15) calendar days.Labor 2 Midterms Reviewer g. If not formalized within the prescribed period. 1989. the legal requirement for a valid election was met. Hence. Book 5) refers to that period from the closing of the polls to the counting and tabulation of the votes as it could not have been the intention of the Implementing Rules to include in the term “close of the election proceedings” the period for the final determinatio n of the challenged votes and the canvassing since it may take a very long period of time. The late filing of the Petition for a new election can be excused under the peculiar facts of this case. In this case. Rule V of the Implementing Rules of Book V of the Labor Code is crystal clear and hardly needs any interpretation. Accordingly. petitioner’s right to file a petition for certification election on its own is beyond question. APPEAL Article 259. its failure to prove its affiliation with NAFLU-KMU cannot affect its right to file the petition for CE as an independent union. PHILIPPINE FRUITS AND VEGETABLES INDUSTRIES V. 1988. The appeal stopped the holding of any certification election. LAGUESMA (MNMPP) 267 SCRA 303 (97) Art. PROF. only formalized the same on February 20. H.” PFVI. As a legitimate labor organization. G. PROTEST PERIOD 218. 1989) 220. 256 of the Labor Code. the local union remains the basic unit free to serve the common interest of all its members and pursue its own interests independently of the federation. such CBA cannot and will not prejudice petitioner's pending representation case or render the same moot. SOBREVIÑAS [2nd Sem 2011-2012] 48 . This majority is 50% + 1. 1984 had resulted in the deprivation of any substantial right or prerogative of anyone. Also. TIMBUNGCO V. 217. Mere technicalities should not be allowed to prevail over the welfare of the workers. Appeal from certification election orders. SECRETARY OF LABOR 594 SCRA 767 (09) It is well-settled that under the so-called "double majority rule. SAMAHAN NG MANGGAGAWA SA PACIFIC PLASTIC V. oral or written. TORRES 211 SCRA 95 (92) Section 4 of Implementing Rules reads: “Where the protest is formalized before the med-arbiter within 5 days after the close of the election proceedings. Having been denied this opportunity by the betrayal committed by petitioner’s officers in the present case. after filing a manifestation of protest on election day on December 16. There was tacit acceptance of the regularity of the elections and the results thereof. What is essential is that they be accorded an opportunity to determine freely and intelligently which labor organization shall act on their behalf. there was an unresolved representation case at the time the CBA was entered between FWU and private respondent." for there to be a valid certification election. 6715. When the med-arbiter admitted and gave due course to respondent’s Petition for nullification of the election proceedings. The protest. Republic Act No. at least a majority of all eligible voters in the unit must have cast their votes. the protest shall be deemed dropped. or caused the perpetration of a fraud or other serious anomaly. precluded the expression and ascertainment of the popular will in the choice of officers. or more than two months after the close of election proceedings. no informal protest. Rule XII referring to Rule XI). The Court denied the petition holding that the Certification of Election (CE) being questioned is invalid. therefore. Under Art. considering that the employees concerned did not sleep on their rights. The decision may be appealed to the Bureau in the same manner and on the same grounds as provided under Rule 5. BUKLOD NG MANGGAGAWA NG DHL PHILIPPINES CORPORATION 434 SCRA 670 (04) The petition for nullification of the CE was filed less than a month after conduct of the election. the election officer should have deferred issuing the Certification of the results thereof. 219. Section 13 of the Implementing Rules cannot strictly be applied to the present case. Validity 216. The phrase “close of election proceeding” as used in Sections 3 and 4 of the pertinent Implementing Rules (Rule 6. The order of the Med-Arbiter dismissing petitioner's petition for certification election was seasonably appealed. but promptly acted to protect their prerogatives. it does not appear that the dispensing by the membership of the Kapisanan with certain technical requirements or formalities in relation to the election of July 15. or more importantly. Despite affiliation. CASTRO 183 SCRA 140 (90) Under the Rules Implementing the Labor Code. SAMAHAN NG MANGGAGAWA SA FILSYSTEMS V.256 of the Labor Codes provides that in order to have a valid election. DHL PHILIPPINES CORPORATION UNITED RANK AND FILE ASSOCIATIONFEDERATION OF FREE WORKERS V. 221. Any party to an election may appeal the order or results of the election as determined by the MedArbiter 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. the med-arbiter shall decide same the within 20 working days from the date of formal action. Hence.Therefore. And in that interval. March 21. The CE held shows that 62 of the 98 eligible voters included in the list of employees obtained from the SSS have cast their votes. the objection to the results of the election of officers came only after the lapse of two years after it was held. protests against elections should be formalized before the Med-Arbiter within 5 days from the close of the election proceedings and must be decided by the latter within 20 working days (Book V.

This principle holds true. The materiality of such misrepresentation is self-evident. TITAN MEGABAGS INDUSTRIAL CORPORATION 428 SCRA 524 (04) Med-Arbiter held there was ER-EE relationship so granted petition for CE filed by union. A certification election may be set aside for misstatements made during the campaign. and 3) the misrepresentation has had an impact on the free choice of the employees participating in the election. where 1) a material fact has been misrepresented in the campaign. This intent is manifested by the issuance of Dept Order No.m. Even if there was no procedural flaw. This new rule decreases or limits the appeals that may impede the selection by employees of their bargaining representative. NORIEL 116 SCRA 694 (82) The certification election is invalid because of certain irregularities such as that (1) the workers on the night shift (10p. etc. LC pertains not just to any of the med-arbiter’s orders. 15. 2. UEUGIP has little support and could not match GATCORD. the entire records of the case shall be remanded to the office of origin for implementation. Art. the employer is a bystander. and then seasonably file a special civil action for certiorari under RULE 65 of the Rules. There was also the allegations of ATU-TUCP that it couldn’t really identify all the voters who voted except for some. 225. an employer has no standing to question such election or to interfere therein. BUKLOD NG MANGGAGAWA NG DHL PHILIPPINES CORPORATION 434 SCRA 670 (04) The making of false statements or misrepresentations that interfere with the free choice of the employees is a valid ground for protest.m. especially when the employees are unable to evaluate the truth or the falsity of the assertions. if it comes from a party who has special knowledge or is in an authoritative position to know the true facts. employees already wrote letters/affidavits alleging irregularities in the elections and disfranchisement of workers as grounds to question the election . Being the sole concern of the workers. it is now clear that it does not represent the majority of the bargaining employees. which was the union NFL. the misrepresentation came from petitioner’s recognized representative. 2) an opportunity for reply has been lacking. the election must be free from the influence or reach of the company. The majority must rule in a certification election. Art. The records shows that as early as August 22 and 30. but to the order granting the petition for certification election. duties and welfare. Thus. It has no right or material interest to assail the certification election. NATIONAL FEDERATION OF LABOR V. SOBREVIÑAS [2nd Sem 2011-2012] 49 . The grievance complained of is more fancied than real. The intention of the law is to limit the grounds for appeal that may stay the holding of a certification election. and that some voters were dictated on to vote for #3. What is significant in a certification election is that employees are given the opportunity to know who shall represent them. that polling precincts were not really conducive to secrecy as they were scattered in different places outside the company premises. ANNULMENT 1. the election cannot be set aside on the fact that the UEUGIP (union) apparently had an issue as to its leadership. to 6a. 259. LAGUESMA 433 SCRA 224 (04) Unless the employer itself has filed a petition for a certification election pursuant to Article 258 of the Labor Code. I. and where no union has yet been duly recognized or certified as a bargaining representative. SECRETARY OF LABOR 287 SCRA 599 (98) The complaint in this case was that a number of employees were not able to cast their votes because they were not properly notified of the date. Interlocutory orders issued by the med-arbiter prior to the grant or denial of the petition. NOTRE DAME MEGABAGS INDUSTRIAL CORPORATION V. Upon finality of the Decision. Without a motion for reconsideration seasonably filed. an appeal of a med-arbiter’s order to hold a certification election will not stay the holding thereof where the employer company is an unorganized establishment. Not all the orders issued by a med-arbiter are appealable. to Secretary who denied appeal. shall not be appealable. GATCORD got 64% while UEUGIP got 4. upon knowing that petitioner was in fact an affiliate of the FFW. 223. 226. 259. ALLEGATIONS/GROUNDS 224. NORIEL 67 SCRA 267 (75) The results of the election cannot be set aside. in waiting sheds and in the back of vehicles. The employees wanted an independent union to represent them in collective bargaining. free from outside interference. UNITED EMPLOYEES UNION OF GELMART INDUSTRIES V. When a petition for certification election is filed by a legitimate labor organization. ER appealed. Sec. ER went to CA on certiorari. 40: Under the new rules. In certification elections. 1989. Expediting such selection process advances the primacy of free collective bargaining. The fact that the officers of petitioner especially its president. any issue arising therefrom may be raised in the appeal on the decision granting or denying the petition. the resolution becomes final and executory. owing to the affiliation of its members with respondent. misrepresented it to the voting employees as an independent union constituted a substantial misrepresentation of material facts of vital concern to those employees. the members disaffiliated from petitioner and organized themselves into an independent union. A misrepresentation is likely to have an impact on their free choice. LC IRR: the Decision or Resolution of the Secretary of the DOLE on appeal shall be final and executory. Rule XI.. However. CONFEDERATION OF CITIZENS LABOR UNION V. Although petitioner won in the election.5% of the votes. unless restrained by appropriate court. The remedy of an aggrieved party in a Decision or Resolution of Secretary of DOLE is to timely file a motion for reconsideration as a precondition for any further or subsequent remedy. In this case. LC: any party to a certification election may appeal the order of the Med-Arbiter directly to the Secretary of Labor who shall decide the same within 15 calendar days. Additionally. SMC QUARRY WORKERS UNION V. These were attached to respondent’s petition just 16 days after the election. DHL PHILIPPINES CORPORATION UNITED RANK AND FILE ASSOCIATIONFEDERATION OF FREE WORKERS V. who was clearly in a position to hold himself out as a person who had special knowledge and was in an authoritative position to know the true facts. Book V. in accordance with the State’s policy to promote and emphasize the primacy of free collective bargaining and to ensure the participation of workers in decision and policymaking processes affecting their rights. still the CA should have denied respondent’s petition for certiorari.) PROF.Labor 2 Midterms Reviewer 222. IRREGULARITIES 227. it is good policy of the employer not to have any participation or partisan interest in the choice of the bargaining representative. there being a clash between two factions in the same union. including orders granting motions for intervention issued after an order calling for a certification election.

Labor 2 Midterms Reviewer and some of those in the afternoon shift were not able to vote, so much so that out of 1,010 voters only 692 voted and about 318 failed to vote; (2) the secrecy of the ballot was not safeguarded; (3) the election supervisors were remiss in their duties and were apparently "intimidated" by a union representative and (4) the participating unions were overzealous in wooing the employees to vote in their favor by resorting to such tactics as giving free tricycle rides and T-shirts. The purpose of a certification election is to give the employees "true representation in their collective bargaining with an employer" That purpose was not achieved in the run-off election because many employees or union members were not able to vote and the employer, through apathy or deliberate intent, did not render assistance in the holding of the election. 228. TIMBUNGCO V. CASTRO 183 SCRA 140 (90) The election of officers is valid, although there is no record of the number of members who attended the meeting, the number of those who actually voted, and the number of votes obtained by each candidate, and that a COMELEC had not been formed to supervise the election. In the first place, it does not at all appear that the dispensing by the membership of the Kapisanan with certain technical requirements or formalities in relation to the election had resulted in the deprivation of any substantial right or prerogative of anyone, or caused the perpetration of a fraud or other serious anomaly, or more importantly, precluded the expression and ascertainment of the popular will in the choice of officers. In the second place, the objections to the elections of officers on July 15, 1984 have come too late, and they must be deemed to have forfeited their right to impugn the same. Under the Rules implementing the Labor Code, protests against elections should be formalized before the medarbiter within (5) days from the close of the election proceedings and must be decided by the latter within (20) working days. In this case, the protest against the election was presented to the medarbiter only after the lapse of almost (2) years after it was held. And in that interval, no informal protest, oral or written, was ever presented against the election. Indeed, there was tacit acceptance of the regularity of the elections and the results thereof, for during that period of almost (2) years, certain significant events took place without demur or objection of any sort on the part of private respondents and the rest of the members of the Kapisanan. 6. CERTIFICATION OF DESIGNATED MAJORITY UNION
Article 255. Exclusive bargaining representation and workers’ participation in policy and decision-making. 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. However, an individual employee or group of employees shall have the right at any time to present grievances to their employer. Any provision of law to the contrary notwithstanding, workers shall have the right, subject to such rules and regulations as the Secretary of Labor and Employment may promulgate, to participate in policy and decision-making processes of the establishment where they are employed insofar as said processes will directly affect their rights, benefits and welfare. For this purpose, workers and employers may form labor-management councils: Provided, 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. (As amended by Section 22, Republic Act No. 6715, March 21, 1989) Article 256. Representation issue in organized establishments. In organized establishments, when a verified petition questioning the majority status of the incumbent bargaining agent is filed before the Department of Labor and Employment within the sixty-day period before the expiration of the collective bargaining agreement, 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. To have a valid election, at least a majority of all eligible voters in the unit must have cast their votes. 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. When an election which provides for three or more choices results in no choice receiving a majority of the valid votes cast, a run-off election shall be conducted between the labor unions receiving the two highest number of votes: Provided, that the total number of votes for all contending unions is at least fifty percent (50%) of the number of votes cast. At the expiration of the freedom period, the employer shall continue to recognize the majority status of the incumbent bargaining agent where no petition for certification election is filed. (As amended by Section 23, Republic Act No. 6715, March 21, 1989) Art. 212. Definitions. j. "Bargaining representative" means a legitimate labor organization whether or not employed by the employer.

A. MAJORITY UNION 229. NATIONAL UNION, ETC V. SEC OF DOLE, 594 SCRA 767 (09) The conduct of a certification election has a two-fold objective: to determine the appropriate bargaining unit and to ascertain the majority representation of the bargaining representative, if the employees desire to be represented at all by anyone. The true importance of ascertaining the number of valid votes cast is for it to serve as basis for computing the required majority, and not just to determine which union won the elections. It is not simply the determination of who between two or more contending unions won, but whether it effectively ascertains the will of the members of the bargaining unit as to whether they want to be represented and which union they want to represent them. 230. PHIL. DIAMOND HOTEL AND RESORT, INC. V. MANILA DIAMOND HOTEL EMPLOYEES UNION, 494 SCR 195 (06) According to Article 255 of the Labor Code, only the labor organization designated or selected by the majority of the employees in an appropriate collective bargaining unit is the exclusive representative of the employees in such unit for the purpose of collective bargaining. The union respondent is not the exclusive majority of the employees of the petitioner, hence it could not demand from the petitioner the right to bargain collectively in their behalf. 231. MARICALUM MINING V. BRION, 482 SCRA 87 (06) According to Article 256 of the Labor Code, for a union to become an exclusive bargaining representative of a particular establishment, it must emerge as winner in a certification election. In the case at bar, there was no certification election held challenging the majority status of NAMAWU as the exclusive bargaining representative of petitioner’s employees. NAMAWU, therefore, remains the exclusive bargaining representative of petitioner’s employees and possesses legal standing to represent them. 232. TRADE UNIONS OF THE PHIL., V. LAGUESMA, 236 SCRA 586 (94) It is crystal clear from the records that the rank-and- file employees of private respondent's Glassware Division are, at present, represented by ILO-PHILS. Hence, petitioner's reliance on the March 22, 1990 Certification that "Transunion Corporation" has no existing collective bargaining agreement with any labor organization issued by Director

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Labor 2 Midterms Reviewer Bautista, Jr., is misplaced. Before petitioner filed a Petition for Certification election, or on November 15, 1989, Integrated Labor Organization (ILO-Phils.) was duly certified by DOLE as the sole and exclusive bargaining agent of the rank-and-file employees of Transunion Corporation-Glassware Division. The existence and filing of CBA entered into between ILO-PHILS and the employer on November 29, 1989 and confirmed in a Certification, dated April 24, 1990, issued by Director Romeo A. Young of DOLE-Region IV. The Certification of ILO-PHILS "as the sole and exclusive bargaining agent of the rank-and-file workers of Transunion-Glassware Division," means it shall remain as such during the existence of the CBA, to the exclusion of other labor organizations, including petitioner, and no petition questioning the majority status of the incumbent bargaining agent shall be entertained, nor shall certification election be conducted, outside of the fifty-day freedom period immediately before the expiry date of the five-year term of the CBA.
B. RUN-OFF ELECTION

been issued a declaration of a final certification election on February 27, 1981 but petitioner filed the petition for Cerification Election with the Bureau on April 11, 1985 or 4 years thereafter.
B. DEADLOCK BAR RULE

1. Requirements 237. NATIONAL CONGRESS OF UNIONS IN THE SUGAR INDUSTRY V. TRAJANO, 208 SCRA 18 (92) Section 3, Rule V, Book V of the Omnibus Rules Implementing the Labor Code provides: “Sec. 3. When to file- In the absence of collective bargaining agreement, duly registered in accordance with Article 231 of the Code, a petition for certification election may be filed any time. However, no certification election may be held within one year from the date of issuance of a final certification election result. Neither may a representation question be entertained if, before the filing of a petition for certification election, a bargaining deadlock to which an incumbent or certified bargaining agent is a party had been submitted to conciliation or arbitration or had become the subject of valid notice or strike or lockout. “If a collective bargaining agreement has been duly registered in accordance with Art 231 of the Code, a petition for Certification election or a motion for intervention can only be entertained within 60 days prior to the expiry date of such agreement.” The clear mandate of the aforequoted section is that a petition for certification election may be filed at any time, in the absence of collective bargaining agreement. Otherwise put, the rule prohibits the filing of a petition for certification election in the following cases: (1) During the existence of a collective bargaining agreement except within the freedom period; (2) Within one (1) year from the date of the issuance of declaration of a final certification election result; or (3) During the existence of a bargaining deadlock to which an incumbent or certified bargaining agent is a party had been submitted to conciliation or arbitration or had become the subject of valid notice or strike or lockout 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 principal purpose is to ensure stability in the relationship of the workers and the management. 2. No Deadlock 238. DIVINE WORD UNIVERSITY OF TACLOBAN V. SEC OF DOLE, 213 SCRA 759 (92) A “deadlock” is defined as the counteraction of things producing entire stoppage: a state of inaction or neutralization caused by the opposition of persons or of factions: standstill. The word is synonymous with the word impasse which, within the meaning of American federal labor laws, “presupposes reasonable effort at good faith bargaining which, despite noble intentions, does not conclude in agreement between the parties.” Be that as it may, the Court is not inclined to rule that there has been a deadlock or an impasse in the collective bargaining process. While it recognizes that technically, DWU has the right to file the petition for certification election as there was no bargaining deadlock to speak of, to grant its prayer would put an unjustified

233. NATIONAL UNION, ETC V. SEC OF DOLE, 594 SCRA 767 (09) A run-off election refers to an election between the labor unions receiving the two (2) highest number of votes in a certification or consent election with three (3) or more choices, where such a certified or consent election results in none of the three (3) or more choices receiving the majority of the valid votes cast; provided that the total number of votes for all contending unions is at least fifty percent (50%) of the number of votes cast. In this case, having determined that no majority won, conducting a run-off election is proper.
C. EFFECT OF CERTIFICATION

234. NATIONAL V. SAN MIGUEL, 85 SCR 805 (02) CAN’T LOCATE THE CASE. SEEMS NEITHER THE SCRA NOR THE YEAR CITATION IS PROPER. 7. BARS TO CERTIFICATION ELECTION A. ONE YEAR BAR RULE: PERIOD COVERED 235. R. TRANSPORT CORP. V. LAGUESMA, 227 SCRA 827 (93) nd Petitioner further argued that the 2 petition for certification election by respondent CLOP, NAFLU, and ALU-TUCP were barred st at least for a period of one year from the time the 1 petition of CLOP was dismissed. Petitioner’s contention is untenable. Section 3, Rule V, Book V of the Omnibus Rules Implementing the Labor Code provides: “Sec. 3. When to file- In the absence of collective bargaining agreement, duly registered in accordance with Article 231 of the Code, a petition for certification election may be filed any time. However, no certification election may be held within one year from the date of issuance of a final certification election result...” The phrase “final certification election result” means that there was an actual conduct of election i.e., ballots were cast and there was a counting of votes. In this case, there was no certification election precisely because the first petition was dismissed, on the ground of defective petition which did not include all the employees who should be properly included in the collective bargaining unit. 236. KAISAHAN NG MANGGAGAWANG PILIPINO V. TRAJANO, 201 SCRA 453 (91) The one-year period- known as the “certification year” during which the certified union is required to negotiate with the employer, and the certification election is prohibited has long expired. NAFLU has

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Labor 2 Midterms Reviewer premium on bad faith bargaining. The record is replete with evidence on the University’s reluctance and thinly disguised refusal to bargain with the duly certified bargaining agent, such that the inescapable conclusion is University evidently had no intention of bargaining with it.
C. CONTRACT BAR RULE

their own choosing. Also, statute aims to achieve stability. So the Board declared that the existence of a CBA will not bar an election but the winning union was subject to the existing agreement. The pragmatic approach has been followed, due note taken of varied as well as changing conditions to make it truly responsive. It’s going too far to affix to the contract bar rule the element of inflexibility. 2. Rule Statement 241. COLEGIO DE SAN JUAN DE LETRAN V ASSOCIATION OF EMPLOYEES AND FACULTY OF LETRAN (340 SCRA 587; SEPT 18, 2000) The "Contract Bar Rule" under Section 3, Rule XI, Book V, of the Omnibus Rules Implementing the Labor Code, provides that: " .… If a collective bargaining agreement has been duly registered in accordance with Article 231 of the Code, a petition for certification election or a motion for intervention can only be entertained within sixty (60) days prior to the expiry date of such agreement." The rule is based on A 232, in relation to A253, 253-A and 256 of the LC. No petition for certification election for any representation issue may be filed after the lapse of the sixty-day freedom period. The old CBA is extended until a new one is signed. The rule is that 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. Hence, the contract bar rule still applies. The purpose is to ensure stability in the relationship of the workers and the company by preventing frequent modifications of any CBA earlier entered into by them in good faith and for the stipulated original period. 242. SAMAHAN NG MGA MANGGAGAWA SA PERMEX V. SECRETARY OF LABOR (286 SCRA 692; MARCH 2, 1998) Petitioner invokes the contract-bar rule. They contend that under Arts. 253, 253-A and 256 of the Labor Code and Book V, Rule 5, §3 of its Implementing Rules and Regulations, a petition for certification election or motion for intervention may be entertained only within 60 days prior to the date of expiration of an existing collective bargaining agreement. The purpose of the rule 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. Excepted from the contract-bar rule are certain types of contracts which do not foster industrial stability, such as contracts where the identity of the representative is in doubt. 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. Such situation obtains in this case. The petitioner entered into a CBA with Permex Producer when its status as exclusive bargaining agent of the employees had not been established yet. 243. BARBIZON PHILS. V. NAGKAKAISANG SUPERVISOR (261 SCRA 738; SEPTEMBER 16, 1996) The petition for certification election cannot be deterred by the "contract-bar rule," which finds no application in the present case. The petitioning union NSBPI is not questioning the majority status of Buklod as the incumbent bargaining agent of petitioner's rank and file employees. The petition for certification election is addressed to a separate bargaining unit — the excluded employees of petitioner.

Art 232. Prohibition on Certification Election. The Bureau shall not entertain any petition for certification election or any other action which may disturb the administration of duly registered existing collective bargaining agreements affecting the parties except under Articles 253, 253-A, and 256 of this Code. (As amended by Section 15, Republic Act No. 675, march 21, 1989).

1. History 239. GENERAL MARITIME STEVEDORES OF THE PHIL. V SOUTH SEA SHIPPING LINES, 108 P 1112 (64) The National Labor-Relations Board, which is the counterpart of our CIR, regards the conflict as one which requires it to strike a balance between the desirability of achieving stability in industrial relations secured through bargaining, on the one hand, and the benefits flowing from the grant of employee full freedom in their choice of representative, on the other. The Board initially took the unqualified view that the existence of agreements was no bar to certification of bargaining representatives. This gave support to the doctrine of substitution whereby a change of representatives would alter an existing contract only by "substituting the new union for the old under its substantive terms" The Board subsequently held that a CBA of reasonable duration is "in the interest of the stability of industrial relations", a bar to certification elections. In adopting the "contract-bar policy", the Board was careful in refusing to announce an inflexible rule as to its authority, and whenever possible, it avoided a determination of the contract's effect on its power of certification election. In 1947, the Board held that it would regard a 2 year contract as a bar to an election until its expiration, because collective bargaining had: "So emerged from a stage of trial and error (that) the time has come when stability of industrial relations can better be served, without unreasonably restricting employees in their right to change representatives, by refusing to interfere with bargaining relations secured by collective agreements for 2 years' duration." In 1953, the same Board announced that: "The time has arrived when stability of labor relations can be better served, without unreasonably restricting employees in their right to change representatives, by holding as a bar collective bargaining agreements even for 5 years' duration (when) a substantial part of the industry concerned is covered by contracts with a similar term." From all this, it may be seen that the National Labor Relations Board has not adopted an iron-clad policy, rigid and fixed, but rather one to be applied according to the changing conditions and industrial practices 240. CONFEDERATION OF CITIZENS LABOR UNION V. NLRC, 60 SCRA 450 (74), FERNANDO, J. CONCURRING OPINION, PP 467-420. While the right to free and unfettered choice by employees of their exclusive bargaining representative should be respected, there are circumstances which in the interest of stability of labor relations, call for a relaxation in its observance. The contract bar rule in the US: Two competing values clashed. Statute guarantees right to bargain through representatives of

PROF. SOBREVIÑAS [2nd Sem 2011-2012]

52

The subject CBA was executed on November 28. BUKLOD NG SAULOG TRANSIT V. may order a certification election notwithstanding the failure to meet the 30% requirement The certification election is the best method of determining the will of the workers on the crucial question of who shall represent them in their negotiations with the management for a collective bargaining agreement that will best protect and promote their interests. 1990. as what petitioner did. conductors and inspectors who are members of the Buklod ñg Saulog. (PWUP) VS. there was an interunion conflict on who would succeed to the presidency of ILOPHILS. is not a bar to the holding of a certification election. It would be injudicious for us to assume. into consideration both agreements and found that the first agreement being incomplete does not bar a certification election. Conformably to said basic concept. the employee composition has substantially changed because a great number of the employees and laborers in the Pandacan Terminal unit have left their employment. of both the CLU and the ESSO that after the secret ballot election. and the Buklod ñg Saulog Transit "does not touch in substantial terms the rates of pay. INTERNATIONAL CONTAINER TERMINAL SERVICES (ICTS) March 18. PREMATURE CONTRACT 245. and then filed with DOLE for registration purposes on March 14. it was also held that a CBA. 1992 It has long been settled that the policy of the Labor Code is indisputably partial to the holding of a certification election so as to arrive in a manner definitive and certain concerning the choice of the labor organization to represent the workers in a collective bargaining unit. In the absence of any substantial evidence that DOLE officials or personnel. Inc. Book V of the Omnibus Rules Implementing the Labor Code. To set it aside on technical grounds is not conducive to the public good. 3. and is caused by other factors than the employer's refusal to bargain collectively. however. Hence." And even in the supplementary agreement. 246. it bears the blessings not only of the employer and employees concerned but even the Department of Labor and Employment. be adversely affected by a collective bargaining agreement registered before or during last 60 days of a subsisting agreement or during the pendency of the representation case. MAY 9. Against the presumption of continued majority status is the rule that such majority status does not continue forever --(1) "especially in face of an assertion and offer of proof to the contrary" (2) "in view of altered circumstances which have likely occurred in the interim" (3) "by a change in the conditions which demonstrates that a shift in sentiment actually exists among the employees. this Court recognized that the Bureau of Labor Relations in the exercise of sound discretion." The trial court took. SOBREVIÑAS [2nd Sem 2011-2012] 53 . their being admittedly rank and file employees. It was ratified on December 8. PORT WORKERS UNION OF THE PHILS. September 21. wages. hours of employment. or at least that the hopes of labor be not frustrated because of its representation by a union that does not enjoy its approval and support. albeit. or been compulsorily laid off with the approval of the CIR. 1966 Against the claim of the MME that it represents the will of the majority of the rank and file employees at the Pandacan Terminal unit. there is no clear-cut stipulation as to "rates of pay. and other conditions of employment of all the employees in the company but seeks to establish merely a grievance procedure for drivers.. It is highly impressed with public interest for it is an essential instrument to promote industrial peace. retired. 7. REGISTERED CBA PROF. 5. 1997) Rule V. covering the company's rank and file employees. i. 1956) The trial court found that the collective bargaining agreement entered into by and between the Saulog Transit. CASALLA (99 PHIL 16 . The CBA was registered by the DOLE only on May 4. This is preferable to the suppression of the voice of the workers through the prissy observance of technical rules that will exalt procedure over substantial justice. had antedated the filing date of the CBA. however. TRADE UNIONS OF THE PHILIPPINES V LAGUESMA 236 SCRA 586. advanced with vehemence. JANUARY 31. that the said CBA was filed only on April 30. More importantly. 1990. A collective bargaining agreement is more than a contract. 1990. or other conditions or employment. on the unsupported surmise that it was done to suit the law that enjoins Regional Offices of DOLE to act upon an application for registration of a CBA within five 5 days from its receipt thereof.e. NOT REGISTERED CBA 248. the presumption on regularity in the performance of official functions holds. Calleja. CITIZEN’S LABOR UNION-CCLU V CIR 18 SCRA 624. the delay in the filing of the CBA was sufficiently explained. 1994 It appears that the procedural requirement of filing the CBA within 30 days from date of execution under Article 231 was not met. as 5 days before its registration. non-compliance with the cited procedural requirement should not adversely affect the substantive validity of the CBA between ILO-PHILS and the Transunion Corp. §4 provides: The representation case shall not. This does not appear to be so in the case considering the built-in-limitation in the CBA excluding the workers sought to be represented by herein petitioner from its coverage. 1989. It is therefore sound policy that any doubt regarding the real representation of the workers be resolved in favor of the holding of the certification election. Trajano where the Court held that the representation case will not be adversely affected by a CBA registered before or during the freedom period or during the pendency of the representation case. and as to the supplementary agreement the Court held that it having been entered into after the filing of the petition for a certification election the same cannot and does not bar a certification election. which was prematurely renewed. wages. in collusion with private respondent.Labor 2 Midterms Reviewer A contract bar applies in a situation where the petition is directed towards one and the same bargaining unit. hours of employment. November 12. LAGUESMA. INCOMPLETE CONTRACT 244. SAMAHAN NG MANGGAGAWA SA PACIFIC PLASTIC V LAGUESMA (267 SCRA 307. 1989. This rule was applied in the case of ALU-TUCP v. 4. 6. Be that as it may. is the manifestation. EXCEPTION 247. It is essential that there be no collusion against this objective between an unscrupulous management and a union covertly supporting it while professing its loyalty to labor. In ALU v.

dominate. the status of the latter union must be first cleared in such a proceeding before such voting could take place B.F. as a result of which a complaint for an unfair labor practice case against the employer was filed. in itself not likely to enhance the prospect of respondent- 251. Unfair labor practices of employers. whether intended or not. It is merely to stress that such a suit should not be allowed to lend itself as a means. as to the bona fides of a labor union. V. the reason being that the votes of the members of the dominated union would not be free. the result might be to dilute or fritter away the strength of an organization bent on a more zealous defense of labor's prerogatives. a petition for certification election or a motion for intervention can only be entertained within sixty (60) days prior to the expiry date of such agreement. SOBREVIÑAS [2nd Sem 2011-2012] 54 . the contract bar rule still applies. It is management that would have an unfair labor practice case filed by it for illegal strike engaged in by some of its employees concluded. BARRERA V CIR (PAWO) GRN L-32853. September 25. UNITED CMC TEXTILE WORKERS UNION VS BLR (JULY CONVENTION) 128 SCRA 316. to prevent a truly free expression of the will of the labor group as to the organization that will represent it. Court of Industrial Relations (101 Phil. of the Omnibus Rules Implementing the Labor Code. What is settled law. March 22. Book V. before it would agree to the holding of a certification election. the union selected would be decertified and the whole election proceedings would be rendered useless and nugatory. it exactly the reverse. That is a matter of which this Court has not had an opportunity to speak on previously. 1981 If it were a labor organization objecting to the participation in a certification election of a company dominated union. D. dating from the case of Standard Cigarette Workers' Union v. until decided. PARTY AND ISSUE 253. the pendency of a formal charge of company domination is a prejudicial question that. PROF. assist or otherwise interfere with the formation or administration of any labor organization. In this case the situation is exactly the reverse. No petition for certification election for any representation issue may be filed after the lapse of the sixty-day freedom period. B. management is allowed to have its way. to prevent a truly free expression of the will of the labor group as to the organization that will represent it. Thus. decided in 1957. CCC acted accordingly and did not commit union busting. This is not to say that management is to be precluded from filing an unfair labor practice case.Labor 2 Midterms Reviewer 249. 1984 Under settled jurisprudence. The difficulties and obstacles that must be then hurdled would not be lost on the rest of the personnel. It is not only the loss of time involved. There is no valid reason then for the postponement sought. If under the circumstances disclosed. Sept 18. CONSENT ELECTION II. Rule XI. 8. 248. 1999 When a CBA has been duly registered. and when the court finds that said union is employer-dominated in the unfair labor practice case. 253-A and 256 of the Labor Code. a petition for certification election or motion for intervention may only be entertained within 60 days prior to the expiry of said agreement. EXPIRED CBA 250. provides that: If a collective bargaining agreement has been duly registered in accordance with Article 231 of the Code. GOODRICH CONFIDENTIAL AND SALARIED EMPLOYEES UNION There is novelty in the specific question raised. whether intended or not. is that if it were a labor organization objecting to the participation in a certification election of a company-dominated union. but also the fear engendered in the mind of an ordinary employee that management has many weapons in its arsenal to bring the full force of its undeniable power against those of its employees dissatisfied with things as they are. The reason is that the certification election may lead to the selection of an employerdominated or company union as the employees' bargaining representative.[8] in relation to Articles 253. if management is allowed to have its way. dating from the case of Standard Cigarette Workers' Union vs. as to whether or not a certification election may be stayed at the instance of the employer. ASSOCIATION OF INDEPENDENT UNIONS IN THE PHILS V NLRC (CENAPRO) 305 SCRA 219. Court 16 of Industrial Relations. This is not to say that management is to be precluded from filing an unfair labor practice case. COLEGIO DE SAN JUAN DE LETRAN V ASSOCIATION OF EMPLOYEES AND FACULTY OF LETRAN 340 SCRA 587. precisely calls for a different conclusion. The rule is that 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. who had not as yet made up their minds one way or the other. however. It is management that would have an unfair labor practice case filed by it for illegal strike engaged in by some of its employees concluded. 2000 The Contract Bar Rule under Section 3. as a result of which a complaint for an unfair labor practice case against tire employer was filed. the status of the latter union must be first cleared in such a proceeding before such voting could take place. The old CBA is extended until a new one is signed. decided in 1957. March 25. The reason that justifies the postponement of a certification election pending an inquiry. 252. the status of the latter union must be first cleared in such a proceeding before such voting could take place. bars proceedings for a certification election. However. Hence. pending the determination of an unfair labor practice case filed by it against certain employees affiliated with respondent-unions. is that if it were a labor organization objecting to the participation in a certification election of a companydominated union. SUSPENSION OF CERTIFICATION ELECTION A. PREJUDICIAL QUESTION Art. in itself not likely to enhance the prospect of respondent-unions. including the giving of financial or other support to it or its organizers or supporters before it would agree to the holding of a certification election. The difficulties and obstacles that must be then hurdled would not be lost on the rest of the personnel. BF GOODRICH PHILS. the result might be to dilute or fritter away the strength of an organization bent on a more zealous defense of labor's prerogatives. It shall be unlawful for an employer to commit any of the following unfair labor practice: (d) To initiate. 126). Hence. who had not as yet made up their minds one way or the other. It is merely to stress that such a suit should not be allowed to lend itself as a means. It is not only the loss of time involved. What is settled law. The unique situation before us. The rule is based on Article 232. as a result of which a complaint for an unfair labor practice case against the employer was filed.

decided in 1957. EFFECT. a procedure has been enacted to allow them to select what union shall be the recognized representative for all those in one agency. 6 and 12. It is the duty of the State to ensure industrial peace by granting everyone the opportunity to organize. A. whether national or local. 256. particularly the right to ask for certification election in a bargaining unit. Executive Order No. It is equally true. is that if it were a labor organization objecting to the participation in a certification election of a companydominated union. to which some of the workers belong. and shall enforce their mutual compliance therewith to foster industrial peace. In granting to employees in the civil service the right to organize. that the said labor organization no longer meets one or more of the requirements herein prescribed. including conciliation. The invalidity of respondent Union's registration would negate its legal personality to participate in certification election. dating from the case of Standard Cigarette Workers' Union vs. humane conditions of work. an election among the workers and employees of the company would riot reflect the true sentiment and wishes of the said workers and employees from the standpoint of their welfare and interest. KIOK LOY VS NLRC (PAMBANSANG KILUSAN NG PAGGAWA) Collective bargaining which is defined as negotiations towards a collective agreement. including voluntary arbitration. It is the policy of the State: (a) To promote and emphasize the primacy of free collective bargaining and negotiations. a certification election. March 22. The rationale for the suspension of the election proceedings has been further amplified as follows: Only a formal charge of company domination may serve as a bar to and stop a certification election. Sections 3 and 4. shall be cancelled by the Bureau if it has reason to believe. GENERAL CONCEPTS I.Labor 2 Midterms Reviewer unions. 255. Rule V and Rule VI. and all other PROF. (Sections 5. collective bargaining and negotiations. PROGRESSIVE DEVELOPMENT CORP V. appeal. recognizing the right of labor to its just share in the fruits of production and the right of enterprises to reasonable returns to investments. however. par. 180. after due hearing. ART. as modes of settling labor or industrial disputes.. as a result of which a complaint for an unfair labor practice case against tire employer was filed. It shall guarantee the rights of all workers to self-organization. is one of the democratic frameworks under the New Labor Code. CANCELLATION TRADE UNION REGISTRATION – 238 – A Art238 A . it still had the legal personality to perform such act absent an order directing a cancellation. The State shall regulate the relations between workers and employers. So much so that Article 249. They shall also participate in policy and decision-making processes affecting their rights and benefits as may be provided by law. the reason being that if there is a union dominated by the Company. POLICY DECLARATION ART XIII. UNITED CMC TEXTILE WORKERS UNION VS BLR (JULY CONVENTION) 128 SCRA 316. and peaceful concerted activities. the pendency of a formal charge of company domination is a prejudicial question that. . Hence.A. not being a legitimate labor organization. hours of work.' the reason being that its members might be overwhlemed in the voting by the other members controlled and dominated by the Company. the reason being that the votes of the members of the dominated union would not be free. LAGUESMA Once a labor organization attains the status of a legitimate labor organization it begins to possess all of the rights and privileges granted by law to such organizations. 211. including the right to strike in accordance with law. and to expansion and growth. 254.Cancellation of registration. and a living wage. What is settled law. The State shall afford full protection to labor. bars proceedings for a certification election. the status of the latter union must be first cleared in such a proceeding before such voting could take place 9. because as to the members of the company dominated union. mediation and conciliation. lex dilationes semper exhorret (The law abhors delays). 1984 Under settled jurisprudence. acquires no rights. i. 1987 CONSTITUTION LABOR Section 3. Declaration of Policy. The State shall promote the principle of shared responsibility between workers and employers and the preferential use of voluntary modes in settling disputes. This is one instance that calls for the application of the maxim. and promote full employment and equality of employment opportunities for all. Under such circumstances. SOBREVIÑAS [2nd Sem 2011-2012] 55 . Court of Industrial Relations (101 Phil. (g) 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.e. The rationale for this is that at the time the respondent union filed its petition. Rules and Regulations to Govern the Exercise of the Government Employees to Self-Organization) NB: Significant case because it recognizes the rights of government employees to self-organize. They shall be entitled to security of tenure. There is no valid reason then for the postponement sought. Registration based on false and fraudulent statements and documents confer no legitimacy upon a labor organization irregularly recognized. local and overseas. until decided. The certificate of registration of any legitimate labor organization. 126). ASSOCIATION OF COURT OF APPEALS EMPLOYEES V. It is a mutual responsibility of the employer and the Union and is characterized as a legal obligation. that the opposition to the holding of a certification election due to a charge of company domination can only be filed and maintained by the labor organization which made the charge of company domination because it is the entity that stands to lose and suffer prejudice by the certification election. organized and unorganized. a petition for certification election filed by an interested labor organization shall be dealt with a view to attaining this objective. but also the fear engendered in the mind of an ordinary employee that management has many weapons in its arsenal to bring the full force of its undeniable power against those of its employees dissatisfied with things as they are. the labor organization. designed to stabilize the relation between labor and management and to create a climate of sound and stable industrial peace. PENDING PETITION. This is especially true when it involves the ultimate respect for and protection of 257. FERRER-CALLEJA An order to hold a certification election is proper despite the pendency of the petition for cancellation of the registration certificate of the respondent union. the vote of the said members in the election would not be free. the rights of government employees.

and (3) a demand to bargain under Article 251. among others. If the terms of the CBA are clear and have no doubt upon the intention of the contracting parties. 258. SOBREVIÑAS [2nd Sem 2011-2012] 56 . the employer. It is settled that the parole evidence rule admits of exceptions. Clearly. As labor. such as the execution of the affidavits by the NASLU-FFW officers and respondent's managers. namely. It is settled that in order to ascertain the intention of the contracting parties. Thus may be discerned how crucial a certification election is. explain or add to the terms of the written agreement if he raises as an issue. however." II. on its face. That is repugnant to the concept of collective bargaining. labor and management. NATURE PURPOSE AND RULES OF INTERPRETATION 259. It is precisely because respect must be accorded to the will of labor thus ascertained that a general allegation of duress is not sufficient to invalidate a certification election. the literal meaning of its stipulation shall prevail. The judiciary then should be the last to look with tolerance at such efforts of an employer to take part in the process leading to the free and untrammeled choice of the exclusive bargaining representative of the workers. establishing a 7 regime of self-rule. management is to maintain a strictly hands-off policy. cited in the Comment of Solicitor General Mendoza: "There is another infirmity from which the petition suffers. (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. However. Precisely. (2) proof of majority representation. PI MANUFACTURING VS PI MANUFACTURING SUPERVISORS UNION To compel employers simply to add on legislative increases in salaries or allowances without regard to what is already being paid. a certification election. That is to give substance to the principle of majority rule. 260.Labor 2 Midterms Reviewer terms and conditions of employment including proposals for adjusting any grievance or question arising under such an agreement and executing a contract incorporating such agreement. SUAREZ VS NATIONAL STEEL CBA is more than a contract A CBA is more than a contract. does not contain an express prohibition of payment of retirement benefits to retrenched employees. That is to accord respect to the policy of the Labor Code. it is indispensable that they be represented by a labor organization of their choice. must be ascertained. This case certainly does not fall within the exception. and after executing the agreement. UNITED EMPLOYEES UNION OF GELMART INDUSTRIES V NORIEL The institution of collective bargaining is a prime manifestation of industrial democracy at work. SCOUT RAMON ALBANO VS NORIEL Certification Election: Concept and Purpose The same principle was again given expression in language equally emphatic in the subsequent case of Philippine Association of Free 6 Labor Unions v. It is the fairest and most effective way of determining which labor organization can truly represent the working force. is evident in the opposing interpretations of the same by the Labor Arbiter and the CA on one hand and the NLRC on the other. an intrinsic ambiguity in the written agreement or its failure to express the true intent and agreement [19] of the parties thereto. An obvious instance is where it invokes the obstacle interposed by the contract-bar rule. There must be an opportunity to determine which labor organization shall act on their behalf. That is to govern themselves in matters that really count. While it is a mutual obligation of the parties to bargain. It covers the whole employment relationship and prescribes the [18] rights and duties of the parties. It is true that there may be circumstances where the interest of the employer calls for its being heard on the matter. if the CBA imports ambiguity. one of the basic concepts of a democratic polity. the institution of collective bargaining is designed to assure that the other party. The two parties to the relationship. is not under any legal duty to initiate contract negotiation. words. make their own rules by coming to terms. is composed of a number of individuals. if requested by either party. (a) of the New Labor Code . PROF. 262. That is against the letter and spirit of welfare legislation intended to protect labor and to promote social justice. For if it does not. the Voluntary Arbitrator shall principally consider their contemporaneous and subsequent acts as well as their negotiating and contractual history and evidence of past practices. it must be shown by competent and credible proof. It was filed by the employer. especially with regard to the retirement provisions of the 1994-1996 CBA. actions and deeds -. Noriel. A party may present evidence to modify. would be to penalize employers who grant their workers more than the statutory prescribed minimum rates of increases.prior to. It is a fundamental postulate that the will of the majority given expression in an honest election with freedom on the part of the voters to make their choice. The mechanics of collective bargaining is set in motion only when the following jurisdictional preconditions are present. v. management and labor. then the parties' intention as shown by their conduct. the literal meaning of its stipulation shall prevail. That there is an apparent ambiguity or a failure to express the true intention of the parties. this would be counter-productive so far as securing the interests of labor is concerned. par. is the most appropriate means of ascertaining its will. however. 261. it is a generalized code to govern a myriad of cases which the draftsmen cannot wholly anticipate. If the terms of the CBA are clear and have no doubt upon the intention of the contracting parties. to repeat. Inc. it may lend itself to the legitimate suspicion that it is partial to one of the contending unions. No better device can assure the institution of industrial democracy with the two parties to a business enterprise. is free to choose its representative. the parties may still prove it by means of contemporaneous and subsequent acts of the parties to the agreement. LEPANTO VS LEPANTO LOCAL STAFF UNION The terms and conditions of a collective bargaining contract constitute the law between the parties. during. indisputably partial to the holding of a certification election so as to arrive in a manner definitive and certain concerning the choice of the labor organization to represent the workers in a collective bargaining unit. Employer’s Hands-off Policy There is relevance likewise to this excerpt from Monark International. Bureau of Labor Relations: "Petitioner thus appears to be woefully lacking in awareness of the significance of a certification election for the collective bargaining process. the adversary in the collective bargaining process. To resolve any doubt on the matter. Proof by Subsequent and Contemporaneous Acts While the CBA. labor. Sound policy dictates that as much as possible. is controlling.

One is to promote industrial stability and predictability. (As amended by Section 20. The duty to bargain requires that the parties deal with each other with open and fair minds. WAIVER 264. giving due consideration to the context in which it is negotiated and purpose which it is intended to serve. The Board shall have the power to issue subpoenas requiring the attendance of the parties to such meetings. it was PALEA. It was also PALEA that voluntarily opted for the 10-year suspension of the CBA. It goes without saying. 6715. 2. Where a proposal raised by a contracting party does not find print in the CBA. PAL invested for the training of Almario to enable him to acquire a higher level of skill. SOBREVIÑAS [2nd Sem 2011-2012] 57 . hours of work and all other terms and conditions of employment. proficiency. either party may request for a conference which shall begin not later than ten (10) calendar days from the date of request. Compliance with a CBA is mandated by the expressed policy to give protection to labor. Quasi-judicial function is a term which applies to the action.In the absence of an agreement or other voluntary arrangement providing for a more expeditious manner of collective bargaining.” The primary purpose of a CBA is the stabilization of labor-management relations in order to create a climate of a sound and stable industrial peace. A sincere endeavor to overcome obstacles and difficulties that may arise. Definitely. must be apparent. (d) During the conciliation proceedings in the Board. CODE PROCEDURE ART. They signed it fully aware of the passage of R. hold hearings. The acts of public respondents in sanctioning the 10-year suspension of the PAL-PALEA CBA did not contravene the “protection to labor” policy of the Constitution. PAL expected to recover the training costs by availing of Almario’s services for at least three years. the Board shall intervene upon request of either or both parties or at its own initiative and immediately call the parties to conciliation meetings. and the courts must place a practical and realistic construction upon it. and draw conclusions from them as a basis for their official action and to exercise discretion of a judicial nature. BARGAINING PROCEDURE 1. . it is not a part thereof and the proponent has no claim whatsoever to its implementation. Inasmuch as the agreement sought to promote industrial peace at PAL during its rehabilitation.A. and (e) The Board shall exert all efforts to settle disputes amicably and encourage the parties to submit their case to a voluntary arbitrator. . Here. 251. ALMARIO VS PAL The CBA is the law between the contracting parties – the collective bargaining representative and the employer-company. In the same vein. PRIVATE PROCEDUREART. The agreement afforded full protection to labor. including conciliation to foster industrial peace. so that employer-employee relations may be stabilized and industrial strife [14] eliminated. that only provisions embodied in the CBA should be so interpreted and complied with. Pursuant to Article 260 of the Labor Code. it shall serve a written notice upon the other party with a statement of its proposals. In construing a CBA. The other party shall make a reply thereto not later than ten (10) calendar days from receipt of such notice. NCMB is not a quasijudicial body. The right to free collective bargaining. 250. 265. RIVERA VS ESPIRITU A CBA is “a contract executed upon request of either the employer or the exclusive bargaining representative incorporating the agreement reached after negotiations with respect to wages.” This is founded on the dictum that a CBA is not an ordinary contract but one impressed with public interest. Republic Act No. refuse to reimburse the costs of training without violating the principle of unjust enrichment. The goal of collective bargaining is the making of agreements that will stabilize [15] business conditions and fix fair standards of working conditions. however. that voluntarily entered into the CBA with PAL. the parties are prohibited from doing any act which may disrupt or impede the early settlement of the disputes. (c) If the dispute is not settled. after all. The other is to assign specific timetables wherein negotiations become a matter of right and requirement. (b) Should differences arise on the basis of such notice and reply. however. or technical competence so that he could efficiently discharge the position of A-300 First Officer. He cannot. as the exclusive bargaining agent of PAL’s ground employees.Labor 2 Midterms Reviewer At this juncture. it must be stressed that a CBA constitutes the law [13] between the parties when freely and voluntarily entered into. therefore. the courts must be practical and realistic and give due consideration to the context in which it is negotiated and the purpose which it is intended to serve. No. March 21. respondents posture contravenes this goal. promoted the shared responsibility between workers and employers. including proposals for adjusting any grievances or questions arising under such agreement.The following procedures shall be observed in collective bargaining: (a) When a party desires to negotiate an agreement. Procedure in collective bargaining. Given that. and the exercised voluntary modes in settling disputes. CBA provisions should be “construed liberally rather than narrowly and technically." B. The expectation of PAL was not fully realized. etc. Duty to bargain collectively in the absence of collective bargaining agreements. due to Almario’s resignation after only eight months of service following the completion of his training course. 6640. Respondents cannot invoke the beneficial provisions of the 1987 CBA but disregard the concessions it voluntary extended to petitioner. 1989). Nothing in Article 253-A. 263. said agreement satisfies the first purpose of Article 253-A. of public administrative officers or bodies. TABIGUE VS INTERNATIONAL COPRA A[n agency] is said to be exercising judicial function where [it] has the power to determine what the law is and what the legal rights of the parties are. Either case was the union’s exercise of its right to collective bargaining. C. prohibits the parties from waiving or suspending the mandatory timetables and agreeing on the remedies to enforce the same. includes the right to suspend it. In the instant case. discretion. it shall be the duty of employer and the representatives of the employees to bargain collectively in accordance with the provisions of this Code. All of its thirteen (13) officers signed the CBA with the assistance of respondent NLU. the parties to a CBA shall name or designate their respective representatives to the PROF. it has not been shown that respondent PIMASUFA was coerced or forced by petitioner to sign the 1987 CBA. who are required to investigate facts or ascertain the existence of facts. and then undertakes to determine these questions and adjudicate upon the rights of the parties. Article 253-A has a two-fold purpose. It shall be the duty of the parties to participate fully and promptly in the conciliation meetings the Board may call.

But unless grave abuse of discretion is cogently shown. reads: Art. 260. it cannot negate their wishes on matters which are purely personal and individual to them. In case the parties fail to select a Voluntary Arbitrator or panel of Voluntary Arbitrators. 269. but it is equally cogent that they should also be able to justify an appreciable increase in wages. present grievances to the employer does not imply the right to submit the same to voluntary arbitration. the forty employees freely opted to be covered by the Old Plan. It should be understood that bargaining is not equivalent to an adversarial litigation where rights and obligations are delineated and remedies applied. it is possible that this Court. No particular setup for a grievance machinery is mandated by law. fair and reasonable under the circumstances. which shall act with same force and effect as if the Arbitrator or panel of Arbitrators has been selected by the parties as described above A signing bonus may not be demanded as a matter of right. Grievance Machinery and Voluntary Arbitration. it cannot impose its will on them. The parties to a Collective Bargaining Agreement shall include therein provisions that will ensure the mutual observance of its terms and conditions. An employer cannot be held guilty of ULP for not renewing an employment contract that already expired. and (4) the power to control the employee's conduct-although the latter is the most important element. and they voluntarily exercised their choice. SOBREVIÑAS [2nd Sem 2011-2012] 58 . We observe that private respondent's detailed allegations on productivity are unrebutted. capriciousness or personal hostility on the part of such public officer. The company gave them every opportunity to choose. parties to a Collective Bargaining Agreement shall name and designate in advance a Voluntary Arbitrator or panel of Voluntary Arbitrators. may even agree with the wisdom of petitioner's claims. it shall automatically be referred to the voluntary arbitrators designated in advance by parties to a CBA. Thus. of black and white — but one of wisdom. (2) the payment of wages. 270. And unless they can clearly demonstrate bias. BRILLANTES True. pursuant to the selection procedure agreed upon in the Collective Bargaining Agreement. AMERICAN PRESIDENT LINES VS CLAVE The following elements are generally considered to determine whether an employer-employee relationship exists: (1) the selection and engagement of the employee. Although the union has every right to represent its members in the negotiation regarding the terms and conditions of their employment. as may be necessary. 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. (1) possession of the status of majority representation by the employees' representative. the Board shall designate the Voluntary Arbitrator or panel of Voluntary Arbitrators. union members have the right to demand wage increases through their collective force. as incorporated by RA 6715. 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. they should not expect their positions to be adopted in toto. (2) proof of majority representation. In this case. cogency and compromise as to what is possible. or include in the agreement a procedure for the selection of such Voluntary Arbitrator or panel of Voluntary Arbitrators. The fact is respondents did not ignore the letter sent by the union so much so that they called a meeting to discuss its demands. or some its members at least. NATURE OF PROCEDURE 266. provides for only a single grievance machinery in the company to settle problems arising from "interpretation or implementation of their collective bargaining agreement and those arising from the interpretation or enforcement of company personnel policies. 268. namely. their decision should be respected. as amended. this Court will refrain from using its extraordinary power of certiorari to strike down decisions and orders of quasi-judicial officers specially tasked by law to settle administrative questions and disputes. For this purpose. at any time. and as much its non-compliance cannot be deemed to be an act of unfair labor practice. It is simply a process of finding a reasonable solution to a conflict and harmonizing opposite positions into a fair and reasonable compromise. Article 260 of the Labor Code. In the present case. Consequently only disputes involving the union and the company shall be referred to the grievance machinery or voluntary arbitrators The right of any employee or group of employees to. but this condition is merely procedural. COLEGIO DE SAN JUAN DE LETRAN V ASSOCIATION OF EMPLOYEES AND FACULTY OF LETRAN Article 252 of the Labor Code defines the meaning of the phrase “duty to bargain collectively”. The union cannot pretend to know better. the condition for awarding it must be duly satisfied. Meaning of duty to bargain collectively. the condition sine qua non for its grant — a non-strike — was not complied with. the Court will not interfere or substitute the said officer's judgment with its own. RA 875 whenever a party serves a written notice upon the employer making some demands the latter shall reply thereto not later than 10 days from receipt thereof.Labor 2 Midterms Reviewer grievance machinery and if the grievance is unsettled in that level. When parties agree to submit unresolved issues to the secretary of labor for his resolution. If it is not agreed upon by the parties or unilaterally offered as an additional incentive by private respondent. It is understood that they defer to his wisdom and objectivity in insuring industrial peace. ASSOCIATED LABOR UNIONS (ALU) VS. CALTEX V. (3) the power of dismissal. and (3) a demand to bargain 267. 3. NATIONAL UNION OF RESTAURANT WORKERS V CIR It is true that under Sec 14. It is noteworthy that petitioner ignored this argument of private respondent and based its demand for wage increase not on the ground that they were as productive as the Shell employees. This is particularly true in the resolution of controversies in collective bargaining agreements where the question is rarely one of legal right or wrong — nay. In this case. preferably from the listing of qualified Voluntary Arbitrators duly accredited by the Board." Article 260. Rather. we cannot attribute grave abuse of discretion to public respondent. – The duty to bargain collectively means the performance of mutual obligation to meet and convene promptly and expeditiously in PROF. arbitrariness. FERRER-CALLEJA The mechanics of collective bargaining are set in motion only when the following jurisdictional preconditions are present. Article 252.

Art. While it is a mutual obligation of the parties to bargain. par. To be furnished by the employer. 6715. it shall serve a written notice upon the other party with a statement of its proposals. 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. The mechanics of collective bargaining is set in motion only when the ff. Art. 253. Procedure in collective bargaining. Duty to bargain collectively in the absence of collective bargaining agreements. it shall be the duty of employer and the representatives of the employees to bargain collectively in accordance with the provisions of this Code. jurisdictional preconditions are present. Hence. . SEC. Meaning of duty to bargain collectively. 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. based ostensibly on the revelation of Administrator Olalia that it was sourced from the confidential position given him by the company. 271. KILUSAN Article 249. 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. Foremost is that a petition for certification election must be filed during the sixty-day freedom period. The Board shall exert all efforts to settle disputes amicably and encourage the parties to submit their case to a voluntary arbitrator. March 21. hours of work. DUTY TO BARGAIN Art. It is a mutual responsibility of the employer and the Union and is characterized as a legal obligation. Should differences arise on the basis of such notice and reply. is designed to stabilize the relation between labor and management and to create a climate of sound and stable industrial peace.Labor 2 Midterms Reviewer good faith for the purpose of negotiating an agreement with respect to wages. with its annual audited financial statements." Collective bargaining which is defined as negotiations towards a collective agreement. Art. SOBREVIÑAS [2nd Sem 2011-2012] 59 . This confidential information given to Admin. Procedure in collective bargaining. and (3) a demand to bargain under Art 251. is not under any legal duty to initiate contract negotiation. Republic Act No. Olalia was made prior to theIUnion’s slowdown and defiance of the Assumption order causing it additional losses. all of which preconditions are undisputedly present in the instant case. When a party desires to negotiate an agreement. The Board shall have the power to issue subpoenas requiring the attendance of the parties to such meetings. the Board shall intervene upon request of either or both parties or at its own initiative and immediately call the parties to conciliation meetings. 250. (a) of the Labor Code . In the absence of an agreement or other voluntary arrangement providing for a more expeditious manner of collective bargaining. However. (As amended by Section 20. The following procedures shall be observed in collective bargaining: a. and all other terms and conditions of employment including proposals for adjusting any grievance or question arising under such an agreement and executing a contract incorporating such agreement. 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. 272. On the other hand. or during the collective bargaining negotiation. C. 233 of the LC prohibits the use in evidence of confidential information given during conciliation proceedings. however. after the union has been duly recognized by the employer or certified as the sole and exclusive bargaining representative of the employees in the bargaining unit. There is a requirement on both parties of the performance of the mutual obligation to meet and convene promptly and expeditiously in good faith for the purpose of negotiating an agreement. The administrator clearly breached this provision. and e. During the conciliation proceedings in the Board. the mere filing of a petition for certification election does not ipso facto justify the suspension of negotiation by the employer. Xxx In order to allow the employer to validly suspend the bargaining process there must be a valid petition for certification election raising a legitimate representation issue. d. NISSAN MOTORS V. (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 LC. petitioner devised ways and means in order to prevent the negotiation. . 1989) Art. either party may request for a conference which shall begin not later than ten (10) calendar days from the date of request. If the dispute is not settled. b.Petitioner’s utter lack of interest in bargaining with the union is obvious in its failure to make a timely reply to the proposals presented by the union. the employer. Duty to bargain collectively when there exists a collective bargaining agreement. (g) LC 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. When there is a collective bargaining agreement. if requested by either party. KIOK LOY (SWEDEN ICE CREAM PLANT) V NLRC. including the balance sheet and the profit and loss statement. 242. either party can serve a written notice to terminate or modify the agreement at least sixty (60) days prior to its expiration date. it shall serve a written notice upon the other party with a statement of its proposals. 252. The petition must first comply with the provisions of the Labor Code and its Implementing Rules. . Rights of legitimate labor organizations. namely. the duty to bargain collectively shall also mean that neither party shall terminate nor modify such agreement during its lifetime. c. The reason – Art. This is a clear violation of Article 250 of the Labor Code Article 250. The other party shall make a reply thereto not later than ten (10) calendar days from receipt of such notice. 251. within thirty (30) calendar days from the date of receipt of the request. par. The union lived up to its requisite when it presented its proposals for the CBA to petitioner. (2) proof of majority representation. upon written request. PROF. The other party shall make a reply thereto not later than ten (10) calendar days from receipt of such notice. – The following procedures shall be observed in collective bargaining: (a) When a party desires to negotiate an agreement. It shall be the duty of the parties to participate fully and promptly in the conciliation meetings the Board may call. DOLE (Topic – conciliation proceedings) The Court cannot sanction the award made by the DOLE Sec. the parties are prohibited from doing any act which may disrupt or impede the early settlement of the disputes. or within sixty (60) calendar days before the expiration of the existing collective bargaining agreement.

The NLRC correctly observed that the inclusion of the retirement plan in the collective bargaining agreement as part of the package of economic benefits extended by the company to its employees to provide them a measure of financial security after they shall have ceased to be employed in the company. Indeed. boost their morale and efficiency and promote industrial peace. however. 274. 1. negotiable. is not well-taken. it must be shown that Nestle was motivated by ill will. All it contemplates is that both parties should approach the negotiation with an open mind and make reasonable effort to reach a common ground of agreement. These grounds. vacation. gives "a consensual character" to the plan so that it may not be terminated or modified at will by either party The fact that the retirement plan is non-contributory. created in the collective bargaining agreements. nothing in the law prohibits them from doing so. not the maximum percentage. SOBREVIÑAS [2nd Sem 2011-2012] 60 . Where the employer did not even bother to submit an answer to the bargaining proposals of the union. The union failed to substantiate its claim. SAN MIGUEL CORP. there is a clear evasion of the duty to bargain collectively. declared that the Retirement Plan is consensual in character. private respondent violated the mandatory provisions of the CBA. or done in a manner contrary to morals…” in disclaiming unilateral grants as proper subjects of their CB negotiations. a friendly dialogue between labor and management as a means of maintaining industrial peace. UNIVERSITY OF SAN AGUSTIN EMPLOYEES UNION The law sets is the minimum. While the law PROF. Hence. that the employees contribute nothing to the operation of the plan. This is an indication of bad faith. if academic institutions wish to allot a higher percentage for salary increases and other benefits. For failing to exhaust all the steps in the grievance machinery and arbitration proceedings provided in the CBA. Since it was GMC which violated the duty to bargain collectively it had lost its statutory right to negotiate or renegotiate the terms and conditions of the draft CBA proposed by the union. they were acting within an area marked out by the Act as a proper sphere of collective bargaining. In abandoning the grievance proceedings and stubbornly refusing to avail of the remedies under the CBA. The duty to bargain does not include the obligation to reach an agreement. NLRC. let alone a good moral example. GENERAL MILLING CO. health and dental services. Nestle is accused of violating its duty to bargain collectively when it purportedly imposed a pre-condition (retirement benefits) to its agreement to discuss and engage in collective negotiations with the union. DEADLOCK 277. for the employees by practicing discrimination and favoritism in the appointment and promotion of certain employees on the basis of illicit relations or blood relationship with them. does not make it a non-issue in the CBA negotiations. is a valid CBA issue. rice allowances.Labor 2 Midterms Reviewer makes it an obligation for the employer and employees to bargain collectively with each other. MEANING OF DUTY 273. appear more illusory than real. would have been an appropriate forum for such negotiation. UNION OF FILIPRO EMPLOYEES) The company's contention that its retirement plan is nonnegotiable. 276. Good faith bargaining required of the Bank an open mind and a 11 sincere desire to negotiate over grievances. VS. favoritism and other management practices. Corporation’s failure to make a timely reply to the proposals presented by the union is indicative of its utter lack of interest in bargaining with the union. NESTLE PHILS 1991 (NESTLE PHILS V. In demanding that the terms of the Retirement Plan be opened for renegotiation.e. and so. as it were. 2006 Issue 1: The purpose of collective bargaining is the acquisition or attainment of the best possible covenant or terms relating to economic and non-economic benefits granted by laborers and due the employees. sick & other leaves with pay — are non-contributory benefits. UNION OF FILIPRO EMPLOYEES ETC. “bad faith or fraud. NLRC Deadlock is defined as the situation between the labor and the management of the company where there is failure in the collective bargaining negotiations resulting in a stalemate. the grievance procedure is a part of the continuous process of 12 collective bargaining. (1991 case cited) Issue 2: Allegation of Unfair Labor Practice. Even the reference to immorality was not irrelevant as it was made to support the respondents' other charge that the bank president had failed to provide wholesome working conditions. Union devised a flimsy excuse by questioning the existence of the union and the status of its membership to prevent any negotiation. i. 2008 (Motion for partial reconsideration) Failure to reach an agreement after negotiations have continued for a reasonable period does not establish a lack of good faith. the notice of strike should have been dismissed by the NLRC and union ordered to proceed with the grievance arbitration proceedings. UNIVERSITY OF SAN AGUSTIN INC V. By imputing bad faith unto the actions of Nestle. midyear bonuses. indeed. such compulsion does not include the commitment to precipitately accept or agree to the proposals of the other. It is intended to promote. V. REPUBLIC SAVINGS BANK When the respondents complained against nepotism. reward their loyalty. CA The union lived up to this obligation when it presented proposals for a new CBA to within three (3) years from the effectivity of the original CBA. Since the retirement plan has been an integral part of the CBA since 1972. almost all of the benefits that the petitioner has granted to its employees under the CBA — salary increases. 275. For a charge of ULP to prosper. the union had the burden of proof to present substantial evidence to support the allegation of ULP. the members of UFE-DFA-KMU are acting well within their rights as we have. or was oppressive to labor. 2. 13th and 14th month pay. the Union's demand to increase the benefits due the employees under said plan. Its excuse that it felt the union no longer represented the workers. But GMC failed in its duty under Article 252 to make a counter-proposal. was mainly dilatory as it turned out to be utterly baseless. V. medical and hospitalization plans. and there is even a 10% portion the disposition of which the law does not regulate. but they do not compel one.. The statutes invite and contemplate a collective bargaining contract. Union cites collective bargaining deadlock as grounds for filing notice of strike. The grievance committee. As a matter of fact. seniority pay.

Plainly put. P. if there was indeed a promise or undertaking on the part of private respondent to obligate itself to grant an automatic acrossthe-board wage increase. if an employer interferes in the selection of its negotiators or coerces the Union to exclude from its panel of negotiators a representative of the Union. SOBREVIÑAS [2nd Sem 2011-2012] 61 . contravene its mandate of wage increase – it is only the Tripartite Wage Productivity Board of the DOLE that could approve an exemption of an establishment from coverage of a Wage Order. 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. substantial evidence is required to support the claim. Such an enactment is compulsory in nature. WAIVER P. At the negotiations. RIVERA V. Likewise. considers it an unfair labor practice when an employer interferes. The circumstances that occurred during the negotiation do not show that the suggestion made by Diokno to PROF.” Thus. MINUTES OF NEGOTIATION 278. 282. WAIVER OF RIGHT 280. the question of minimum wage is not negotiable. by themselves. Parties to a CBA may not. If petitioner is a financially distressed company then it should have applied for a wage exemption so that it could meet its labor costs without endangering its viability or its very existence upon which both management and labor depend for a living. The basic premise of this argument is definitely untenable. and if it can be inferred that the employer adopted the said act to yield adverse effects on the free exercise to right to self-organization or on the right to collective bargaining of the employees. Article 252 also states that the duty to bargain “does not compel any party to agree to a proposal or make any concession. That is to assure decent living conditions. BARGAINING PROCEDURE. STANDARD CHARTERED BANK EMPLOYEES UNION VS. Substantial evidence has been defined as such relevant evidence as a reasonable mind might accept as adequate to support a conclusion. SAMAHANG MANGGAGAWA SA TOP FORM V. MANAGEMENT EMPLOYEES ASSN. It cites as basis therefor. ISSUES 283. ASSN. the duty includes “executing a contract incorporating such agreements if requested by either party. PHIL. ISSUES 281. However. BARGAINABLE ISSUES 1. The Minutes reflects the proceedings and discussions undertaken in the process of bargaining for worker benefits in the same way that the minutes of court proceedings show what transpired therein. Petitioner union’s contention that the Minutes of the collective bargaining negotiation meeting forms part of the entire agreement is pointless. set a wage lower than the minimum wage. SAMAHANG MANGGAGAWA SA TOP FORM MANUFACTURING UNITED WORKER’S OF THE PHILIPPINES VS. CONFESOR (04). it is but natural for both management and labor to adopt positions or make demands and offer proposals and counter-proposals.” If indeed private respondent promised to continue with the practice of granting across-the-board salary increases ordered by the government. However. petitioner union should have requested or demanded that such “promise or undertaking” be incorporated in the CBA. INC. in order to show that the employer committed ULP under the Labor Code. COLLEGIO DE SAN JUAN DE LETRAN V. PHIL. 27 OUTLINE) BARGAINABLE ISSUES 1. not to mention the possibility that employees may be duped or be unwittingly put in a position to accept a lower wage. nothing is considered final until the parties have reached an agreement. ESPIRITU (SUPRA. Parenthetically. It could have invoked Article 252 of the Labor Code defining “duty to bargain. one of management’s usual negotiation strategies is to “x x x agree tentatively as you go along with the understanding that nothing is binding until the entire agreement is reached. the union could have insisted on its position on the issue by refusing to enter into a CBA without the concession of such provision. AM. MANILA FASHIONS V.” Petitioner union’s assertion that it had insisted on the incorporation of the same proposal may have a factual basis considering the allegations in the aforementioned joint affidavit of its members. NLRC A CBA provision is void where the parties. Questions of minimum wages are not within the sphere of bargaining between the parties. The company’s refusal to grant the union’s demand to a provision for an across the board wage increase for wage orders did not mean it was bargaining in bad faith and it had a right to insist on its position to the point of a stalemate since this was a mandatory subject of collective bargaining being an important economic provision.Labor 2 Midterms Reviewer 3. such promise could only be demandable in law if incorporated in the CBA. D. To do so would render nugatory the purpose of a wage exemption. SUSPENSION OF BARGAINING 279. However. What the law decrees must be obeyed. AM. After all. NLRC (98). 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.” thus. 27) 5. 4. MANAGEMENT CO. not even the consent of the employees themselves suffices to defeat its operation. In fact. SUPRA Article 248(a) of the Labor Code. 284. To start with. in agreeing to condone the implementation of a Wage Order. a portion of the Minutes of the collective bargaining negotiation. restrains or coerces employees in the exercise of their right to self-organization or the right to form association. petitioner union has the means under the law to compel private respondent to incorporate this specific economic proposal in the CBA. petitioner union may not validly claim that the proposal embodied in the Minutes of the negotiation forms part of the CBA that it finally entered into with private respondent. 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. OF EMPLOYEES (SUPRA. The right to self-organization necessarily includes the right to collective bargaining. ULP under Article 248(a) in connection with Article 243 of the Labor Code is committed. SUPRA 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 a position to the point of stalemate. V. NLRC Petitioner union anchors its arguments on the alleged commitment of private respondent to grant an automatic across-the-board wage increase in the event that a statutory or legislated wage increase is promulgated. For legislation of that character proceeds on the premise that there is a fkloor below which the amount paid laibor not ffall.

when UST filed the instant petition seeking the affirmance of the DOLE Secretary’s order in its entirety which included a signing bonus which there was originally basis for and assailing only the increased amount of the signing bonus awarded. as a contract governing the employer and the employees respecting to the terms of employment. terms and conditions as they may deem convenient provided these are not contrary to law. the skills requirements and job content between forwarders’ jobs and bargaining unit jobs may be the same. hours of work. morals. 288. hours of work and all other terms and conditions in a bargaining unit.Labor 2 Midterms Reviewer Divinagracia to exclude Umali from the union’s negotiating panel is an anti-union conduct from which it can be inferred that the Bank consciously adopted such act to yield adverse effects on the free exercise of the right to self-organization and collective bargaining of the employees. including mandatory provisions for grievances and arbitration machineries (Manila Fashions v NLRC). 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. Effect of Sub-standard Contract 239(f). Until a new CBA is executed between the parties. TSPI VS. public order. including conciliation to foster industrial disputes. the CBA. 291. In the case at bar the CBA clearly states that the wage increases for the years 2001 and 2002 shall be deemed inclusive of the mandated minimum wage increases under future wage orders that may be issued. The ten year suspension of the PAL-PALEA CBA did not contravene the “protection to labor” policy of the Constitution. HONDA PHILIPPINES VS. UNIVERSITY OF IMMACULATE CONCEPCION VS. NATIONAL FEDERATION OF LABOR VS. hours of work and all other terms and conditions of employment in a collective bargaining unit. are clear and leave no doubt upon the intention of the contracting parties. CA (04) A collective bargaining agreement refers to the negotiated contract between the legitimate labor organization refers to the negotiated contract between the legitimate labor organization and the employer concerning wages. that jobs related to the contracted forwarding activities are not regular company activities and are not to be undertaken by regular employees falling within the scope of the bargaining unit but by the forwarders’ employees. where the CBA is clear and unambiguous it becomes the law between the parties and compliance therewith is mandated by express policy of law. when it signed the CBA with the company. 289. should prevail. The primary purpose of the CBA is the stabilization of labor-management relations in order to create a climate of sound and stable industrial peace. TSPI EMPLOYER’S UNION (08) The CBA is the law between the parties and they are obliged to comply with its provisions. the union agreed. it must be understood as encompassing all the terms and conditions in the said agreement. The agreement afforded full protection to labor. again implicitly by its silence and acceptance. and the exercised voluntary modes in settling disputes. RIVERA VS. In construing a CBA. Thereby. FACULTY ASSOCIATION OF MIT VS. Unless annulled. Therefore. CONTENTS a. good customs. A bonus is an act of gratuity or liberality by the giver. The law does not provide for any exception nor qualification on which economic provisions of the existing agreement are to retain its force and effect. it is considered to have unqualifiedly agreed to grant the original award to the respondent union’s members. DEFINITION 286. If the terms of the contract. As in all other contracts. as in a CBA. but their work for different purposes and for different entities completely distinguish and separate forwarder and company employees from one another. hours of work and all other terms and conditions of employment in a bargaining unit. and they may even work on the same company products. including conciliation to foster industrial peace. The CBA is the norm of conduct between the parties and compliance therewith is mandated by express policy of the law. including proposals for adjusting any grievances or questions arising under such agreement. In this sense. SECRETARY OF LABOR (02) A CBA refers to the negotiated contract between a legitimate labor organization and the employer concerning wages. COLLECTIVE BARGAINING 1. See sample CBAs b. SAMAHAN NG MALAYANG MAGGAGAWA SA HONDA (05) A collective bargaining agreement refers to the negotiated contract between a legitimate labor organization and the employer concerning wages. clauses. the courts must be practical and realistic and give due consideration to the context in which it is negotiated and the purpose which it is intended to serve. the parties to a CBA may establish such stipulations. SOBREVIÑAS [2nd Sem 2011-2012] 62 . the union accepted the forwarding arrangement. especially considering that such was undertaken previous to the commencement of the negotiation and simultaneously with Divinagracia’s suggestion that the bank lawyers be excluded from its negotiating panel. albeit implicitly. UST V UST (09) A signing bonus is a grant motivated by the goodwill generated when a CBA is successfully negotiated and signed between the employer and the union. 290. there must be clear indications of that the parties reached a meeting of the minds. or public policy. and all other terms and conditions of employment. management had already established a practice of forwarding some work in the warehouse department to service providers. Thus. CF 239 as amended 239 no longer has 239 (f) such that entering into substandard contracts is no longer a ground for cancellation of union registration Art 239 Grounds for Cancellation of Union Registration (f) Entering into collective bargaining agreements which provide terms and conditions of employment below minmum standards established by law PROF. TEMIC VS TEMIC (09) When the CBA was made between the union and management. the literal meaning of the stipulations shall control. Thus. E. 2. As in all contracts. ESPIRITU (02) A CBA is a contract executed upon the request of either the employer or the exclusive bargaining representative incorporating the agreement reached after negotiations with respect to wages. The proposed new system of faculty ranking is a contravention from of the existing provision of the CBA and thus violative of the law between the parties. 285. CA The Collective Bargaining Agreement (CBA) is a contract between the parties for the duration of its term. 287. promoted the shared responsibility between workers and employers. 292.

the parties shall agree on the duration of retroactivity thereof. 297. the minutes of ratification. false statements or fraud in connection with the election of officers. 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. false statement or fraud in connection with the adoption or ratification of the constitution and by-laws or amendments thereto. In case of a deadlock in the renegotiation of the Collective Bargaining Agreement. c. be for a term of five (5) years. SOBREVIÑAS [2nd Sem 2011-2012] 63 . 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. Republic Act No. Duration and Re-negotiation Art 253-A. the Board shall designate the Voluntary Arbitrator or panel of Voluntary Arbitrators. in fact. as may be necessary. c. be said to exist. d. Voluntary dissolution of members. whether or not the notice of strike was valid and the strike itself legal when it was allegedly instigated to compel the employer to hire strangers outside the working unit …all of these are issues the resolution of which call for the application of labor laws. A labor dispute can nevertheless exist "regardless of whether the disputants stand in the proximate relationship of employer and employee" provided the controversy concerns. and the list of voters. LUZON DEVELOPMENT BANK VS. SA MIGUEL FOODS INC. 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. whether or not the Union can lawfully represent the workers of Lipercon and D'Rite in their demands against SanMig in the light of the existing CBA. INC. It can be gleaned from their discussions that it was left to the parties to fix. or include a procedure for their selection. therefore. insofar as the representation aspect is concerned. The parties to a Collective Bargaining Agreement shall include therein provisions that will ensure the mutual observance of its terms and conditions. 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. 295. For this purpose. 1989) d. In this instance the management acted in accord with the CBA when they made employment guidelines to supplement the provisions of the CBA pursuant to a previous ruling of the SC that they were not obliged to unconditionally accept recommendees since these recommendees must still meet the required employment standard theretofore set the management. since the case of the petitioner was voluntarily submitted for voluntary arbitration by the union and the employer with the petitioner’s consent. 6715. whether or not SanMig's contracts with Lipercon and D'Rite constitute "labor-only" PROF. Jurisdiction over such issues belongs to the labor tribunals. SMC intended to have the terms of the CBA effective for three (3) years reckoned from the expiration of the old or previous CBA. false statement or fraud in connection with the adoption or ratification of the constitution and by-laws or amendments thereto. 294. March 21. the framers of the law did not give a fixed term as to the effectivity of the terms and conditions of employment. Misrepresentation. CORP VS. All other provisions of the Collective Bargaining Agreement shall be renegotiated not later than three (3) years after its execution. DAMASO III (95) The acts of the petitioner (molesting a co-employee) in this case involved a violation of the Code of Employees discipline. Taking it from the history of their CBAs. For this purpose. NAVARRO VS. the decision of the voluntary arbitrator (dismissal) was sustained. or include in the agreement a procedure for the selection of such Voluntary Arbitrator or panel of Voluntary Arbitrators. SAN MIGUEL CORP VS. 293. and general principles of fair play. Misrepresentation. among others. In case the parties fail to select a Voluntary Arbitrator or panel of Voluntary Arbitrators. (As amended by Section 21. Grievance Procedure Art 260. Consequently there was no justification for the petitioner to invoke the grievance machinery provisions of the CBA. b. (06) Management prerogative must be exercised in good faith for the advancement of the employer’s interest ad not for the purpose of defeating or circumventing the rights of the employees under special laws. Terms of a collective bargaining agreement. Grievance machinery and voluntary arbitration. by mutual agreement may enter into a renegotiated contract with a term of three (3) years or one which does not coincide with the said five (5) year term. and the list of members who took part in the ratification. valid agreements such as the individual contracts of employment and the CBA. a Memorandum from the Secretary of Labor states that the parties. The following may constitute grounds for cancellation of union registration: a. KIMBERLY-CLARK PHILS. Misrepresentation. parties to a Collective Bargaining Agreement shall name and designate in advance a Voluntary Arbitrator or panel of Voluntary Arbitrators. pursuant to the selection procedure agreed upon in the Collective Bargaining Agreement. Notably. the terms and conditions of employment or a "change" or "arrangement" thereof. CONFESOR (96) The CBA is a contract between the parties and they must respect the terms and conditions of the agreement. UNITED KIMBERLY-CLARK EMPLOYEES UNION VS. If any such agreement is entered into beyond six months. minutes of the election officers. SMC EMPLOYEES UNION – PTGWU (07) Whether or not the Union demands are valid. However. the parties may exercise their rights under this Code. Any Collective Bargaining Agreement that the parties may enter into shall. parties to a CBA shall name and designate therein a voluntary arbitrator or panel of arbitrators. the minutes of ratification. and if said agreement is ratified by majority of the members in the bargaining Art 239 as amended Art 239. and the list of member who took part in the ratification. 296. ASSOCIATION OF DEVELOPMENT BANK EMPLOYEES (95) Parties to a CBA are required to include therein provisions for a machinery for the resolution of grievances arising from the interpretation or implementation of the CBA or company personnel policies. 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. Grounds for Cancellation of Union Registration. preferably from the listing of qualified Voluntary Arbitrators duly accredited by the Board.Labor 2 Midterms Reviewer contracting and. shall retroact to the day immediately following such date. On the issue of representation. preferably from those accredited by the National Conciliation and Mediation Board (NCMB). a regular employer-employee relationship may.

including those who do not belong to the chosen bargaining labor organization. 6715. The file shall be open and accessible to interested parties under conditions prescribed by the Secretary of Labor and Employment. Republic Act No. March 21. hence including regular employees. However. PAL VS PALEA (08) “Bargaining Unit”. Regional Directors and the Commission. and Action Art. 1989) processes will directly affect their rights. an individual employee or group of employees shall have the right at any time to present grievances to their employer.Beneficiaries Art. unless the Code so explicitly states. There was not valid reason for management to refuse to negotiate in good faith with the union. Non-regular employees are members of the bargaining unit. 4. Any provision of law to the contrary notwithstanding. For this purpose. SOBREVIÑAS [2nd Sem 2011-2012] 64 . The Bureau shall also maintain a file of all collective bargaining agreements and other related agreements and records of settlement of labor disputes and copies of orders and decisions of voluntary arbitrators. It shall include any individual whose work has ceased as a result of or in connection with any current labor dispute or because of any unfair labor practice if he has not obtained any other substantially equivalent and regular employment. (As amended by Section 22. The term shall not be limited to the employees of a particular employer. The Regional Offices shall furnish the Bureau with a copy of the Collective Bargaining Agreement within five (5) days from its submission. Exclusive bargaining representation and workers’ participation in policy and decision-making. Under the CBA the benefits extend to ALL employees in a collective bargaining unit. Republic Act No. the relation between labor and management should be undisturbed until the last 60 days of the fifth year. or when public interest or national security so requires. with equity to the employer. Employees need only to be members of the bargaining unit. Registry of unions and file of collective bargaining agreements. Requirements. to participate in policy and decision-making processes of the establishment where they are employed insofar as said PROF. 231. Registration – Period. provided that no specific information submitted in confidence shall be disclosed unless authorized by the Secretary. 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. The Bureau shall keep a registry of legitimate labor organizations.000. 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.00) or in any other amount as may be deemed appropriate and necessary by the Secretary of Labor and Employment for the effective and efficient administration of the Voluntary Arbitration Program. 3. workers shall have the right. the parties shall submit copies of the same directly to the Bureau or the Regional Offices of the Department of Labor and Employment for registration. Contract Beneficiaries . (As amended by Section 15. 298. the subject contract is valid and legal therefore binds the parties. which the collective interest of all the employees. subject to such rules and regulations as the Secretary of Labor and Employment may promulgate. it is undisputable that when the union requested for a renegotiation of the economic terms of the CBA it was still the certified collective bargaining agent of the workers because it was seeking said renegotiation within 5 years from the date of effectivity of the CBa. indicates to be the best suited to serve the reciprocal rights and duties of the parties. 299.all or less than all of the entire body of employees. orders and awards of the Secretary of Labor and Employment. Hence. benefits and welfare. Within thirty (30) days from the execution of a Collective Bargaining Agreement. The Bureau shall also maintain a file and shall undertake or assist in the publication of all final decisions. 1989) Art 212 (f) "Employee" includes any person in the employ of an employer. accompanied with verified proofs of its posting in two conspicuous places in the place of work and ratification by the majority of all the workers in the bargaining unit. COURT OF APPEALS (04). Any amount collected under this provision shall accrue to the Special Voluntary Arbitration Fund. workers and employers may form labor-management councils: Provided. March 21. The Bureau or Regional Offices shall act upon the application for registration of such Collective Bargaining Agreement within five (5) calendar days from receipt thereof. The union’s proposal was also submitted within the 3 year period from the date of the effectivity of the CBA. 255.Labor 2 Midterms Reviewer unit. SUPRA Art 253A of the LC mandates that the representation provision of a CBA should last five years. The Bureau or Regional Office shall assess the employer for every Collective Bargaining Agreement a registration fee of not less than one thousand pesos (P1. or when it is at issue in any judicial litigation. GENERAL MILLING VS. 6715.

the discretion to fix the effectivity of the agreement. any provision of law should then apply. 304. holding rights through the agency of the union representative. L-24421CASTRO. What the law additionally requires is that a CBA must be renegotiated within 3 years after its execution. MARCH 17. V QUISUMBING (MEWA)302 SCRA 173MARTINEZ. 303.majority of the employees. Until a new Collective Bargaining Agreement has been executed by and between the parties. . INV. 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. 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. A CBA. and is caused by other factors than the employer's refusal to bargain collectively". V NLRC (BUAT ET AL. any exclusive interest claimed by the agent is defeasible at the will of the principal. The CBA should be effective for a term of 2 years. Another legal principle that should apply is that in the absence of an agreement between the parties. One such provision is the principle of hold over. 9. an arbitrated CBA takes on the nature of any judicial or quasi-judicial award. The law does not specifically cover the situation where no agreement has been reached with respect to the effectivity of the CBA within the 6 month period allowed. 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. They may bargain however for the shortening of said expiration date. 302. then. Duty to bargain collectively when there exists a collective bargaining agreement. DECEMBER 29. J. is the rule that such majority status does not continue forever "especially in face of an assertion and offer of proof to the contrary". MANILA ELECTRIC CO.253-A is specific to the representation aspect. 1999 It was held that there is no sufficient legal ground on the justification for the retroactive application of the disputed CBA. FACULTY ASSOCIATION OF MIT V. however. 523 SCRA 709 (2007) Until a new CBA is executed by and between the parties. The 5-year term requirement under Art. the law prevents the existence of a gap in the relationship between the collective bargaining parties. and even beyond the three-year period prescribed by law. If no agreement is reached within 6 months from the expiry date of the 3 years that follow the CBA execution. the employees can change said agent but the contract continues to bind then up to its expiration date. 253. ELISCO-ELIROL LABOR UNION V NORIEL80 SCRA 682TEEHANKEE.even during the effectivity of a CBA executed between employer and employees thru their agent. for the law abhors a vacuum.Against the presumption of continued majority status. it operates and may be executed only respectively unless there are legal justifications for its retroactive application. Thus. the duty to bargain collectively shall also mean that neither party shall terminate nor modify such agreement during its lifetime.27. or "in view of altered circumstances which have likely occurred in the interim".not anybody else .. DEPT OF LABOR. no new agreement was entered into by and between petitioner Pacific and NFL pending appeal of the decision in NLRC Case.Labor 2 Midterms Reviewer 7. 2000 When a collective bargaining contract is entered into by the union representing the employees and the employer.. 1977 The union consisting of the members-employees of an employer is the principal party to the CBA (rather than the mother union which is merely its agent) and is therefore entitled to be recognized as the sole and exclusive bargaining representative entitled to administer and enforce the collective bargaining agreement with the employer. CITIZENS LABOR UNION-CCLU V CIR (MALAYANG MANGGAGAWA SA ESSO. in the absence of a new agreement. as to its economic provisions. NO. In this eventuality.R. the law expressly gives the parties . SOBREVIÑAS [2nd Sem 2011-2012] 65 . either party can serve a written notice to terminate or modify the agreement at least sixty (60) days prior to its expiration date.)328 SCRA 173KAPUNAN. L24320. Substitution Doctrine . NOVEMBER 12. Article 253 of the Labor Code explicitly provides: ART.It must first be established whether a CBA was in effect during the time of the appeal. PROF. can be extended beyond the period stipulated therein. i. JAN. that in the absence of a new CBA. 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. CA. In the case at bar. In this manner. as an entity under the statute. NEW PACIFIC TIMBER AND SUPPLY CO. CBA AND DISAFFILIATION-SUBSTITUTION DOCTRINE 300. is the true party in interest to the contract.e. even the nonmember employees are entitled to the benefits of the contract. EFFECT EXPIRY 301. or "by a change in the conditions which demonstrates that a shift in sentiment actually exists among the employees. Justification for the doctrine . ESSO)G. 1966 It is a sound and unassailable labor practice for labor and management to conclude a new contract before the expiry date of any collective bargaining agreement in order to avoid a hiatus in management-labor relations.When there is a collective bargaining agreement. However.