24 FEBRUARY 1999, 9 AM - 12 NN
Atty. Ada D. Abad
Antonio H. Abad & Associates Law Offices


entitled to security of tenure, humane
conditions of work, and a living wage.
They shall also participate in policy and
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 the workers and
employers, recognizing the right of
labor to its just share in the fruits of
entrepreneurs to reasonable returns on
investments, and to expansion and

Why do you suppose collective bargaining is
mandated by the Constitution? Why is it so
important as to ensure that workers be collectively
given a chance to participate in the policy and Art. 211 (a), Labor Code cf. Art. 255, LC
decision-making processes, especially when it
Art. 211. Declaration of policy. -affects the terms and conditions of their work?
It is the policy of the State: (a) to promote
and emphasize the primacy of free collective
As a worker or an employee, the most ideal
bargaining and negotiations, as modes of
situation which could be envisioned is that he will be
settling labor or industrial dispute.
able to dictate the terms and conditions of his work,
even including how much he will be paid, the
manner and method by which he will work, and such
other terms and conditions. But that is not usually
the case. In practical terms, the terms and
conditions of employment are usually dictated upon
by the employer at the time of the hiring of the
employee. In a sense, the contract of employment
(if ever there is one) is in the nature of a contract of
adhesion, e.g., there is already a printed form
employment and the employee “takes it or leaves
it.” From the time of hiring, you can already note
the inherent inequality between management and
labor. Thus, in cognizance of this inherent inequality
in industrial relations, the State has provided
constitutional guarantees to correct the same.

1. Constitutional and statutory basis;
concept and




Consti., Art. 13, sec. 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
collective bargaining and negotiations,
accordance with law. They shall be

Art. 255. Exclusive bargaining
participation in policy and decisionmaking. -The
designated orselected by a majority of the
employees in an appropriate bargaining unit
shall be the exclusive representative of the
employees in such unit for the purpose of
collective bargaining. However, an individual
employee or a group of employees shall have
the right at any time to present grievances to
their employer.
Any provision of the 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, the 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.
Kiok Loy vs. NLRC, 141 SCRA 179 (1986)
Collective bargaining which is
as “negotiations
collective agreement”, is one of the

1 Definition of bargaining unit - the appropriate Dept. So much so that Art. (2) the the affinity and unity of the employees’ interests. of Labor. Caltex Refinery Empl. once it is certified as the exclusive bargaining agent. or of compensation and working conditions [Substantial or Mutual Interests rule. and is characterized as a legal obligation. 9 (April 1997). Note 1: The duty to bargain collectively exists only between the employer and the employees. 1 (q) looking towards the execution of a labor contract between the employer and the bargaining agent.) vs. Sec. 234 SCRA 517 . hours of work and all other terms and conditions of employment. However. PARTIES TO COLLECTIVE BARGAINING Basically: (a) the employer. Note 2: As regards the bargaining representative: (a) The union representative need not be an employee in the unit. NOTE: HOW TO DETERMINE THE APPROPRIATE BARGAINING UNIT San Miguel Corp. It represents all the employees in the bargaining unit. Order No. body of employees in the employer unit or any specific occupational or geographical grouping within such employer unit. Bargaining is not equivalent to an adversarial litigation where rights and obligations are delineated and remedies applied. Union Brillantes. It is a mutual resonsibility of the employer and the union. as represented by the members of the Management panel. community of interest]. the union officer must an employee in the unit. inasmuch as they are Golden Farms vs. It is simply a process of finding a reasonable solution to a conflict and harmonizing opposite positions into a fair and reasonable compromise. and to create a climate of sound and stable industrial peace. 236 SCRA 595 The fundamental factors in determining the appropriate collective bargaining unit are: (1) the will of the employees [Globe doctrine].ALEXYLLE ROSE GARSULA – CONCEPCION Page | 2 democratic frameworks under the New Labor Code. which the collective interest of all of the employees indicate to be best suited to serve the reciprocal rights and duties of the parties under the collective bargaining provision of the law. Aboitiz). during the collective bargaining negotiations. Laguesma. comprised of all or less than all of the entire body of employees. hours of “Bargaining unit” refers to a group of employees work and other terms and conditions of sharing mutual interests within a given employer unit. Rule Collective bargaining is a procedure I. the unionized contract workers cannot demand for collective bargaining with the company. as represented by the union certified as the exclusive bargaining agent/representative in a certification election called for such purpose. AHA’s simple definition: 2. Sec. (Example: Union which is certified as the exclusive bargaining agent may be represented by the officers of the federation to which it is affiliated. if requested by either party. comprised of all or less than all of the entire employment. such as the substantial similarity of work and duties. Planters Products where a company employed an independent contractor who had his own employees assigned to the plant. including proposals for adjusting any grievance or question arising under such an agreement. employees of the contractor and not of the company. vs. regarding wages. Hence. designed to stabilize the relation between labor and management. (3) . in the case of Planters Products Employees Union vs. (Mactan Workers Union vs. 2. 279 SCRA 218 (1997) (b) The union that gets the majority vote in a certification election. and executing a contract incorporating such an agreement. 249 (g) of the Labor Code makes it a ULP for the employer to reufse to “meet and convene promptly and expeditiously in good faith for the purpose of negotiating an agreement with respect to wages.A “bargaining unit” has been defined as a group of employees of a given employer. and (b) the employees. does not act for its members alone.

Decision: Existence of prior bargaining history is neither decisive nor conclusive in determination of an appropriate bargaining unit. The fact that their work designations are either managerial or supervisory is of no moment. The Ees bargaining power with management is strengthened thereby. and the herein declared rank-and-file members of the respondent union. skills and training of employees. Calleja.” 2. A careful examination of the records of this case reveals no evidence that rules out the commonality or community of interest among the rank-and-file members of the petitioners. hours of work.ALEXYLLE ROSE GARSULA – CONCEPCION Page | 3 prior collective bargaining history.2 Generally -. San Miguel vs. Laguesma. and (11) extent of union organization. then it is evident that these employees doe not possess managerial status. Land-Air-Sea Labor Union vs. CIR. (8) common supervision and determination of collective bargaining. (4) similarity in the qualifications. we defined the bargaining unit as the “legal collectivity for purposes of collective bargaining purposes whose members have substantially mutual bargaining interests in terms and conditions of employment as will assure to all employees their collective bargaining rights. re: each sales office/plant/warehouse to be considered a separate bargaining of interest The determinative factor in finding out what kind of workers may properly constitute an appropriate bargaining unit is the SUBSTANTIAL SIMILARITY OF WORK AND DUTIES. and (4) similarity of employment status. on the ground of prior bargaining history.. (6) geographic proximity. composed of all or less than all of the employees which the collective interest of all of the employees indicate to be best suited to serve the reciprocal rights and duties of the parties under the collective bargaining provision of the law. personnel mgr. 268 SCRA 571 (1997) According to Rothenberg. And general manager). (9) history of collective bargaining. considering that it is the nature of their functions and NOT SAID NOMENCLATURES which determines their respective status. Ferrer-Calleja. vs. This is so because the basic test of a bargaining unit’s acceptability is whether it will best assure to all the employees concerned of the exercise of their collective bargaining rights. the law requires them to be members of the existing one. Instead of forming another bargaining unit. (5) frequency of contact or interchange between the employees. Phil. In Belyca Corporation vs. the Board will look to the following factors: (1) similarity in scale and manner of determining earnings. (2) similarity in employments benefits. 236 SCRA 595 Facts: Petition for CE of North Luzon Magnolia Sales Force. (3) similarity in the kind of work performed. 176 In making judgments about “community of interests”. . an appropriate bargaining unit is a group of employees of a given employer. (10) desires of the affected employees. Confesor. The ends of unionism are better served if all the rank-and-file members with substantially the same interests and who invoke their right to selforganization are part of a single unit so they can deal with their ER with JUST ONE AND YET POTENT VOICE. mgr. The most efficatious bargaining unit is one which is comprised of workers enjoying COMMUNITY OR MUTUALITY OF INTERESTS. and their recommendatory powers are not even instantly effective since they are subject to review by at least three (3) managers (dept. and other terms and conditions of employment. contra: SMC Employees Union vs. seeking to represent all regular sales personnel of Magnolia in the North Luzon area. 181 SCRA 119 Where the supervisory employees sought to be represetned by the union are actually NOT INVOLVED in policy making. (7) continuity or integration of production processes. the more decisive being the mutuality or community of interest in terms of the employment conditions and type of work performed. Toyota MP Labor Union. This was opposed by the company. 110 Phil. Pagkakaisa ng Manggagawa sa Triumph vs. Toyota Motor Phils. 262 SCRA 81 [1996] .

Supervisory employees shall not be eligible for membership in a labor organization of the rank-and-file employees. During the renewal or renegotiation for two years on the economic provisions. It would not be in the interest of sound mgmt. Another union (UAW) intervened. Certainly there is commonality in interests of all workers: they are all interested in the progress of their company and in each worker sharing the fruits of their endeavors equitably and generously. Three unions contended that it would be most feasible to have separate bargaining units.ALEXYLLE ROSE GARSULA – CONCEPCION Page | 4 2. It is only when. Variety of tasks is to be expected. hours of work and other conditions of employment.-labor relations if each group of employees were to be allowed to form their own separate bargaining unit. right of supervisory employees. SM Foods with production of feeds and processing of chicken. such difference is not substantial as to warrant the formation of separate unions. assist or form labor union. and was shown by negotiation of plant-wide agreement (not CBA). – Managerial employees are not eligible to join. punch press operators. 6715 Globe Doctrine employees -- desire of The desires of the employees are relevant to the determination of the appropriate bargaining unit. . Skills which must necessarily be commensurated by different compensation packages. but not controlling under this jurisdiction. wages. all other considerations being equally balanced.4 One Company One Union. SMC is engaged in beer manufacturing. While there may be differences in the nature of their individual jobs. different volumes of work and working conditions. 2. Ineligibility of managerial employees to join any labor organization. Labor Code. Decision: Considering the spin-off. Globe Machine. the determining factor would be the desire of the employees themselves. the determining factor would be the desire of the employees themselves. It would then be best to have separate bargaining units for different companies where the employees can bargain separately accdg. The interests of the employees in different companies would perforce differ. LECTURE: The proliferation of unions in a single employer unit is discouraged as a matter of policy unless there are compelling reasons which would deny a certain class of employees the right to self-org. The Union insisted that the employees of the spun-off corporations were still to be considered as part of the appropriate bargaining unit. Article 245. 3 NLRB 294 [1937] Three AFL unions representing different categories of employees (metal polishers and buffers. the companies would consequently have their respective and distinctive concerns in terms of the nature of work. NLRB ruled that in such a case where all other considerations being equally balanced. No company could possibly have all employees performing exactly the same work. Existing CBA included all four divisions. supervisory are prohibited from joining rank-andfile. UAW contended that the interrelational and interdependence of the various units constitute proof of feasibility of one company-one union policy. Magnolia with manufacturing and processing of dairy products. 174 SCRA 388 It is natural in almost all fairly sized corporations to have different groups of workers discharging different functions.3 Spin-off of Magnolia and San Miguel Foods Companies from the San Miguel Corporation as separate corporate entities. to their needs and working conditions. BLR. Thus: Managerial employees are prohibited by law to join. modifications under Rep. No. spin-off corporations were already in existence. Act. but may join. claiming representation of all production and maintenance workers. and that there was a previous bargaining history of separate units. Philtranco vs. others) of Globe Machine filed petitions for CE. for purposes of collective bargaining. assist or form any labor organization. The nature of the products and sales of business may require diff. assist or form separate labor organizations of their own.

be a legitimate labor organization. It is essential to the right of a putative bargaining agent to represet the employees that it be the delegate of a majority of the employees. in the interest of the employer. including right to hire. supra. NLRC: A managerial employee is one whose: (a) primary duties consists of performance of work directly related to management policies.ALEXYLLE ROSE GARSULA – CONCEPCION Page | 5 Indophil Textile Mills Workers Union vs. 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. Company ignored the request. 12 Nov. 3. 251. Kiok Loy vs. Lakas Manggagawa Marcelo. The provisions obviously allows more than one union in the company. assist or form unions. 3. anterior to the granting of an order allowing for a CE. (d) does not devote 20% of his time to work other than those described above. and conversely. (c) regularly and directly assists in the management of the establishment. Union filed a case for ULP after notice of strike. 268 SCRA 571 (1997) A labor organization composed of both rank-and-file and supervisory employees is no labor organization at all. 252.2 When exists/begins – a) duty to bargain In the absence of a CBA Art. It becomes necessary therefore. Calica. Supervisory employees: those who. it shall be the duty of the employer and the representatives of the employees to bargain collectively in accordance with the provisions of this Code. 1982 vs. (b) customarily and regularly exercises discretion and independent judgment relative thereto. effectively recommend managerial actions if the exercise of such authority is not merely routinary or clerical in nature but require the use of independent judgment.1 Defined: Art. Duty to bargain collectively in the absence of collective bargaining agreements. -. 205 SCRA 697 Acrylic Indophil Corporation cannot be considered an extension of IndophilCorporation. Labor Code. In relation to: Managerial employees: one who is vested with powers or prerogatives to lay down an dexecute management policies. to inquire into the composition of any labor organization whenever the status of the labor org is challenged on the basis of Art. NLRC. lay-off and recall. -. It cannot. FerrerCalleja. Labor Code. for any guise or purpose. AN . cannot have the right to file a petition for CE for purposes of collective bargaining. suspend. Toyota MP Labor Union. Knitjoy Manufacturing vs.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 THE WAGES. Sweden Ice cream company. Villuga vs. Toyota Motor Phils. NLRC for Union and declared the proposals as the CBA. Meaning of duty to bargain collectively. and consequently. as to cover in one bargaining unit all employees thereof. but bars them from membership in the rank-and-file. 214 SCRA 174 Article 245 of Labor Code expressly allows for supervisory employees who are not performing managerial functions to join. Duty to bargain collectively 3. transfer. 245 of the Labor Code.In the absence of an agreement or other voluntary arrangement providing for a more expeditious manner of collective bargaining. Company given CBA proposals and request for counter-proposal. vs. with an already certified union. but such duty does not compel any party to agree to a proposal or to make any concession. Note separate corporate entities: doctrine of piercing the veil of corporate entity not applied.

The employer’s right is however subject to reasonable proof only. EITHER PARTY CAN SERVE A WRITTEN NOTICE TO TERMINATE OR MODIFY THE AGREEMENT AT LEAST SIXTY (60) DAYS PRIOR TO ITS EXPIRATION DATE. A similar argument has already been disregarded in the case of KIOK LOY. -.To violate the duty to bargain collectively as prescribed by this Code. Duty to bargain collectively when there exists a collective bargaining agreement. 213 SCRA 759 Petitioner’s contention that the Union’s proposal may not be unilaterally imposed on it on the ground that a CBA is a contract where in the consent of both parties is indispensable. Having the right to demonstration of this fact. FFW. b) With the existence of a CBA only during freedom period Art.ALEXYLLE ROSE GARSULA – CONCEPCION Page | 6 EMPLOYER IS UNDER DUTY TO BARGAIN COLLECTIVELY ONLY WHEN THE BARGAINING AGENT IS REPRESENTATIVE OF THE MAJORITY OF THE EMPLOYEES. It shall be the duty of each party to keep the status quo and to continue in full force and effect the terms and conditions of the existing CBA during the 60-day period. (Lopez Sugar vs. Hence. 30 Aug. 1990) Note 3: In both instances however. Divine Word Univ. 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 60day period and/or until a new agreement is reached by the parties. 248 (g) Art. vs.When there is a collective bargaining agreement. e. 258 (g). Unfair labor practices of employers. HOWEVER. NLRC. or until a new CBA is reached. and/or until a new agreement is reached by the parties. However. Thus. NLRC. is devoid of merit. 253. the duty to bargain collectively is therefore an obligation of both the employer and the employees/union. either party can serve a written notice to terminate or modify the agreement at least 60 days prior to the expiration day. 248 (g).g. 192 SCRA 414). the law provides for anAUTOMATIC RENEWAL CLAUSE. Labor Code. the union’s draft CBA proposals may unilaterally be imposed upon the employer as the collective bargaining agreement to govern their relationship. depiste the lapse of the effectivity of the old CBA. vs. Note 2: As regards CBA about to expire. Note 1. If the employer is guilty of violating the duty to bargain collectively in good faith. 3. that the terms and conditions of the existing CBA shall continue to be in full force and effect during the sixty-day freedom period (Union of Filipro Ees. A natural consequence of this is that the employer has the right to demand of the asserted bargaining agent proof of its representation of its employees. the duty to bargain collectively shall also mean that neither party shall terminate nor modify such agreement during its lifetime.3 Effect of refusal to bargain constitutes ULP under Art. the employer may be held guilty of ULP under Art.. it is not ‘unfair labor practice’ for an employer to refuse to negotiate until the asserted bargaining agent has presented reasonable proof of majority representation. the duty to bargain collectively shall also mean that neither party shall terminate or modify such agreement during its lifetime. where the SC upheld the order of the NLRC declaring the union’s draft CBA proposal as the collective agreement . the law considers the same as continuing in full force and effect until a new CBA is executed. and not merely as a pretext or device for delay or evasion. Furthermore. Labor Code. When there is a collective bargaining agreement. It is necessary however that the demand be made in good faith. -. the case of Divine Word.

For the union panel: usually the officers of the union are members of the panel. 2. In the context of its quest for profits. there being a quorum to transact business.1 Appointment of the members of the respective panels. the constitutional guarantee of the workers’ right to collective bargaining is an implicit cognizance of the inherent inequality in the economic relationship between labor and management. Where a representation question or dispute has arisen in the unit. 1. the disposition and direction of which is entirely within management prerogatives. Note however that despite this. depending upon the By-laws of the corporation. B. and this is especially true where the Union’s request for the counter-proposal is left unanswered. may indicate bad faith.but note that this must all be done in accordance with law. Divine Word may not validly assert that its consent should be a primordial consideration in the bargaining process. in its quest for PROFITS. Board of Directors/Trustees give authority by way of a resolution passed and approved during a regular meeting. Hence. In the context of a depressed economy such as ours. and hence. in threshing out the conditions and terms of their employment. profits could not be had. Hence. By its acts. if considered in relation to the entire bargaining process. requirements 2. a company’s refusal to make counter proposals. Thus.” While it is not obligatory for either party to precipitately accept or agree to the proposals of the other. the Union usually maximizes their proposals (“SUNTOK SA BUWAN”). . As stated in Kiok Loy. As intimated earlier. there is no gainsaying the fact that without the worker’s efforts. this is where the bargaining power and the relative strength of the Union comes in. and the lack of employment opportunities. the Company will – as much as possible – not want to give anything more than that which is mandated by law.4 On the other hand. Usually. 3. Thus. it is but just that they should be given their equitable share in the profits. On the other hand. Upon actual loss of majority status of the bargaining representative without fault of the employer. When duty to bargain ceases 1. Submission of Proposals Composition of Panels. employer-employee relationships may thus be subject to abuses by management. in cognizance that these proposals will usually be whittled down during the negotiation proper. no less that its inaction which bespeck of its sincerity. Thus. COLLECTIVE BARGAINING NEGOTIATIONS A PRACTICAL GUIDE IN HANDLING CBA NEGOTIATIONS As had been intimated earlier.ALEXYLLE ROSE GARSULA – CONCEPCION Page | 7 which should govern the relationship between the parties. it has forfeited whatever rights it could have asserted as an employer. an erring party should not be tolerated and allowed with impunity to resort to schemes feigning negotiations by going through empty gestures. It is in pursuance of the better terms and conditions of their employment that the Union would seek vast improvements therein. Management controls and owns the capital. That case is applicable because of the similarities: (a) the union made a definite request to bargain and submitted its bargaining proposals. the workers are economically dependent upon capital. in the submission of their proposals. (b) the University made no counter-proposal whatsoever. by whose authority For the management panel: by authority of the President or the Board of Directors/Trustees. This is in turn. the weaker of the two. the Company will usually maintain a very conservative stand. where the employees stand on a more or less equal footing with the employer. or 2. duly given authority by their own Board. the State regulates the relationship through the promulgation and implementation of laws which are intended to protect the interests of labor. One such right is thus collective bargaining. collective bargaining allows for a means toward the ideal laissez faire condition. backed up by its constitutional rights to strike and to undertake concerted activities --.

” Signing of the Common Minutes 3.2 3.10 Venue. 3. The common minutes must be faxed at least one (1) day immediately prior to the next scheduled meeting. 3.6 “The following documents may considered as the working documents of the CBA negotiations: (a) Original CBA.4 Both panels should appoint respective recording secretary. of such postponement within twenty four (24) hours. Recorder: to ensure the recording of the minutes of each meeting or conference. frequency and time meetings of . 3. such notice should be addressed to the President of the Union or the recorder. 3. in writing. and (b) three [3] members for the Union Panel. Should the Union request for a postponement. Existing CBA proposals of Union and Mechanics: The Union recording secretary may fax their minutes to the Management recording secretary who will make the common minutes. (b) Proposals of the Union for a new CBA. 3. such notice should be addressed to Chairman or Recorder of the Management panel.3 3.9 Recording of the Minutes Discussion OR Postponement It may be agreed by both panels that should a postponement be necessary.ALEXYLLE ROSE GARSULA – CONCEPCION Page | 8 2.8 Related expenses “It was agreed that expenses for the collective bargaining negotiations pertaining to merienda.g. shall be for the account of the Management. The minutes are useful later. any correction. their (The recording secretary for the Institute shall be Ms.” Recess Recess during negotiations shall be allowed upon request of either panel. to inform the other panel. Quorum “The quorum for business to be transacted shall be at least: (a) three [3] members for the Management Panel. as the 3.3 Identification of Chairman and Recorder Both recording secretaries shall consult with each other and make the common minutes for the past meeting.2 Presentation of the appropriate Special Power of Attorney while the recording secretary for the Union panel shall be Ms. that they will enumerate the agenda for discussion on the next meeting.” 3. Ara Mina). or Both panels may agree to follow the order provided in the Working Documents (CBA 1996) in accordance with the above priority. Order of Negotiations Both panels may agree to discuss noneconomic provisions first (inclusive of political and union rights).1 rules What will be considered Working Documents e. in case there arises a question of the interpretation and/or implementation of the CBA provisions. Chairman: note that it is only the chairman that can bind their respective panel. Hence.7 Setting of the Agenda In order that the discussions per meeting will be both fast and productive. both panel should agree that before adjournment of each meeting. prior to the discussion on all economic provisions.5 (on The common minutes should all be signed before the actual start of the negotiations. and (c) Counter-proposals of the Management shall be considered as references. Rosanna Roces. 2. Determination of ground 1st mtg. 3. should the Management request for a postponement. amendments or modifications to the common minutes must be made prior to the start of the negotiations. in order that the Union may review the same..

Am. rice allowances. For legislation of that character proceeds from the premise that THERE IS A FLOOR BELOW WHICH THE AMOUNT PAID LABOR SHOULD NOT FALL. Such an enactment is compoulsory in nature. nonnegotiable. It is understandable why it is so. As a matter of fact. That is to assrue decent living conditions. health and dental services. should the same be deemed necessary under the circumstances. parties to a CBA shall name and designate in . Meaning of duty to bargain collectively. this is considered time-in. a strike in violation of its terms will be illegal. 193 SCRA 504 (1991) The company’s contention that the retirement plan being noncontributory and hence.. but such duty does not compel any party to agree to a proposal or to make any concession. Mgmt. 252. As regards minimum standards provided by the Labor Code and effect of substandard contract Phil. MORE PLAINLY PUT. What are Bargainable Issues . sick and other leaves with pay.m. 51 SCRA 98 (1971) There is an area placed beyond the sphere of bargaining between the parties. If the definition includes ULP as subject to the grievance procedure. boost their morale and efficiency. Included therein is the question of minimum wages. mid-year bonuses.Art. seniority pay. 260.1 Mandatory Subjects a. LC Art. Nestle Phils. The NLRC correctly observed that the inclusion of the retirement plan in the CBA 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. Ees. vs. Labor Code.g. b. every Friday at 10:00 a. medical and hospitalization plans. is not well-taken. NOTE: By entering into a subminimum contract. 13th and th 14 month pay.ALEXYLLE ROSE GARSULA – CONCEPCION Page | 9 Usually better to set it at a particular day and time. vacation. and (c) what is to be considered as a “grievance”. The time frame per each meeting may be extended by mutual consent of both parties. such as salary increases. are noncontributory. 4.. Phil. It is as simple as that. 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.e. Am. reward their loyalty. Assn. 252. (b) procedure at plant level. LC). and promote industrial peace. that the employees do not contribute anything to the operation of the plan) does not make it a non-issue in CBA negotiations. all grievances submitted to the grievance machinery which are not settled within 7 calendar days from the date of its submission shall automatically be referred to voluntary arbitration prescribed in the CBA (Art. almost all of the benefits which the company has granted to its employees are non-contributory. LC). e. For this purpose. -. vs. not even the consent of the employees themselves suffices to defeat its operation.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 the wages. 4. Note that for union members. THE QUESTION OF MINIMUM WAGES IS NOT NEGOTIABLE. The fact that the retirement plan is non-contributory (i. PROCEDURE UNDER THE LAW AFTER GRIEVANCE MACHINERY PLANT LEVEL: Under the Labor Code. NLRC. Grievance procedure voluntary arbitration and The grievance machinery as provided in the CBA usually defines the following: (a) composition of the panel. there arises a cause of action on the part of the affected employees to DECERTIFYthe Union (Article 239. What the law decrees must be obeyed. gives “a consensual character” to the plan so that it may not be terminated or modified at will by either party.

The attendance of any from any collective bargaining third party or the exclusion of any negotiations or conclusion of the witness from the proceedings shall collective agreement shall be imposed be determined by the VA or VA on any individual member of the panel. disputes including unfair labor purpose and beneficiary of the deduction. 241. (n) 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 of a general membership meeting duly called for the purpose. Rights and conditions of membership in a labor organization – (g) No officer. 261. -. whichever is appropriate. except those which are gross in character. union dues. (h) Every payment of fees. receive evidence and take office. Labor Code. 260. that attorneys fees may parties. its Regional Offices and the Regional Directors of the Department of Labor & Employment shall not entertain disputes. shall no longer be treated as unfair labor practice and shall be resolved as grievances under the CBA. The hear and decide all other labor authorization should specifically state the amount. The Commission. xxx Any violation of the above rights and conditions of membership shall be a ground for the cancellation The VA shall have the power to hold of union registration or expulsion of officer from hearings. The record shall be attested to by the president. 222 (b). it shall be mandatory for the VA or the VA panel to render an award or decision within 20 calendar days from the date of submission of the dispute to VA. xxx voluntary settlement between the parties. attorneys fees. LC). c. The VA or panel of VAs shall have original and exclusive jurisdiction to hear and decide all unresolved grievances arising from the jurisdiction to hear and decide all unresolved grievances arising from the interpretation or implementation of the CBA and those arising from the interpretation or enforcement of company personnel policies. 262. if any. be charged against union funds in an amount to be agreed upon by . including efforts to effect a report such violation to the Bureau. Appearances and fees. Unless the parties agree otherwise. the purpose of the special assessment or fees and the recipient of such assessment or fees. Hearings may be adjourned contracting union. no special assessments. shall also authorization duly signed by the employee. 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. LC). 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. grievances or matters under the exclusive and original jurisdiction of the VA or VA panel and shall immediately dispose and refer the same to the Grievance Machinery or Voluntary Arbitration (o) Other than for mandatory activities under the Code. Labor Code. upon employee. or include in the agreement a procedure for the selection of such VA or panel of VAs. The secretary of the organization shall record the minutes of the meeting including the list of all members present. the votes cast. for cause or upon agreement by the however. Gross violations of the CBA shall mean flagrant and/or malicious refusal to comply with the economic provisions of the agreement (Art. Violations of a CBA. agent or member of a labor organization shall collect any fees. LC). provided in the CBA (Art. Provided.(b) All parties to the dispute shall be No attorneys fees. negotiation fees or entitled to attend the arbitration similar charges of any kind arising proceedings.A L E X Y L L E R O S E G A R S U L A – C O N C E P C I O N P a g e | 10 advance a Voluntary Arbitrator or panel of Voluntary Arbitrators. without an individual written agreement of the parties. practices (ULPs) and bargaining deadlocks (Art. At least thirty whatever action is necessary to percent (30%) of all the members of a union or any resolve the issue/s subject to the member or members specifically concerned may dispute. negotiation fees or any other extraordinary fees may be checked off from any amount due to an The VA or VA panel. special assessment Art. preferably from a listing of qualified VAs duly accredited by the Board. Art.

Metal Foundries case) When the CBA provides for a conclusive arbitration clause. (Union of Filipro vs. Union security clauses (union shop/closed shop. and that the procedure for imposition of special assessment provided by the Labor Code was not followed. It is therefore to the mutual interest of both parties that the business of the company will continue without inconvenience to the public. suspend. even during the effectivity of the CBA. Metal Foundries case).” b.No Lock-out clause Example: “MANAGEMENT and UNION agree that the way to preserve job security and improve the welfare of the employees is to increase the goodwill xxx. to transfer. 2. including but not limited to the exclusive right to hire and appoint employees subject to such reasonable rules and regulations it may prescribe. The Union. boycotts. only a union director recorded the minutes and not the secretary. Nestle Phils. 90 SCRA 135) Palacol vs. in which case.2 Other non-mandatory subjects a. held local membership meetings on different occasion. (PHIL. MANAGEMENT agrees that there shall be no lock-out during the effectivity of this CBA. MANAGEMENT is not precluded from exercising its management prerogatives. the Union may still strike if the company commits ULP as enumerated in Article 248 of the Labor Code. stoppage. Worse. (Phil. already overturned and modified by the new rules which reverts back to the Phil. General rule: A “No strike . Management clause prerogatives “The above provisions notwithstanding. d. UNION agrees that there shall be no strike. but not to ULP strikes.No Lock-out clause” applies only to economic strikes. dismiss or impose any form of disciplinary action upon its employees. 1990 THE SPECIAL ASSESSMENT IN THIS CASE WAS DECLARED INVALID. especially so that there had been subsequent disauthorizations by the majority of the union members. for purchase of vehicles and other items needed for the benefit of the officers and general membership. agent from the lumpsum pay of its members granted under the CBA. No Strike . contrary to the legal procedure. agreement or arrangement of any sort to the contrary shall be null and void. Calleja. In other words. The “No Strike-No Lockout Clause” is not an infringement or undue restriction of the constitutional right to strike. 26 Feb. during the effectivity of this CBA. It submitted only minutes of said meetings when what is required is a written resolution adopted at the general meeting. slowdown. METAL FOUNDRIES VS. and as such. and not to ULP strike. or such other matters relative to the conduct of the business of the company. Exception: (but this is no longer controlling.) 4. Any contract. Allocation thereof at discretion of Union President. MANAGEMENT and UNION agree as follows: 1. no record of votes or list of members present. walk-outs. Special assessment was for purposes of putting up a cooperative and credit union. even ULP strikes are subject to the no-strike no lock-out clause. CIR. and for payment of services rendered by union members. demote. A special assessment cannot be validly deducted by the Union certified as coll. on different dates and various venues. layoff. because said clause is applicable only to ECONOMIC STRIKES.) Example 1: “MANAGEMENT agrees to require as a condition of employment for those employees within the . xxx whether sympathetic or general.A L E X Y L L E R O S E G A R S U L A – C O N C E P C I O N P a g e | 11 the parties. barg. etc.

the condition for awarding it must be duly satisfied. the condition sine qua non for its grant – a non-strike – was not complied with. Employees of the COMPANY who at the signing of this Agreement are members of the UNION and those who subsequently become members thereof shall maintain their membership with the UNION for the duration of this Agreement as a condition of employment. will not apply to employees who are already members of another union at the time of the effectivity of the CBA. Employees of an appropriate collective bargaining unit who are not members of the recognized collective bargaining agent may be assessed a reasonable fee vs. However.” During negotiations. Section 2. the signing bonus was not accepted by the Company. it is a situation where both parties have reached a point beyond which there is no longer any compromise. paragraph (o) of this Code shall not apply to the nonmembers of the recognized collective bargaining agent. Example 2: c. If it is not agreed upon by the parties. Unfair labor practices of employers. STANDSTILL. or unilaterally offered as an additional incentive by the company.” NOTE: A Union security clause cannot have any retroactive effect under Article 248 of the Labor Code. hours of work. xxx” equivalent to the dues and other fees paid by members of the recognized collective bargaining agent. does not conclude in an agreement between the parties. that the individual authorization required under Article 242. Brillantes. ART. In the present case. a signing bonus may not be demanded as a matter of right.It shall be unlawful for an employer to commit any of the following unfair labor practice: xxx (e) To discriminate in regard to wages. 279 SCRA 218 Although proposed by petitioner UNION. . . and that they shall not voluntarily resign from the union earlier than 60 days prior to expiration of this Agreement.A L E X Y L L E R O S E G A R S U L A – C O N C E P C I O N P a g e | 12 bargaining unit who are either members of the ABC FEDERATION on the date of the effectivity of this CBA. and as such. unacceptable. except those employees who are already members of another union at the time of the signing of the collective bargaining agreement. Signing bonus: “Section 1. presupposes reasonable effort at good faith bargaining which. a state of inaction or of neutralizaiton caused by the opposition of persons or factions.. Members of the Union who cease to be members of the UNION in good standing by reason of resignation or expulsion shall not be retained in the employment of the COMPANY. Caltex Refinery Assn. a signing bonus is not a benefit which may be demanded under the law. Rather. The word is synonymous to an “impasse”. which in labor relations law. 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. as clearly explained by the respondent Company. Bargaining Deadlock 5.g. despite noble intentions. e. 248. or may join the union during the effectivity of this Agreement.1 When is there a deadlock collective bargaining in Deadlock is defined as “the counteraction of things producing an entire stoppage. it is now claimed by petitioner Union under the principle of “maintenance of existing benefits” of the old CBA. and other terms and conditions of employment in order to encourage or discourage membership in any labor organization. 5. Besides. if such non-union members accept the benefits under the collective agreement: Provided.

with more reason should it not be conducted if. statutory duty to bargain collectively. Strikes. viz: “A ‘deadlock’ is xxx the counterclaim of things producing entire stoppage. Rule I. It is only just vote was considered. THUS. despite noble intentions. respondent union. In cases of unfair labor practice. despite attempts to bring an employer to the negotiation table by the certified bargaining agent. must be approved by a majority of there was proof that the certified the total union membership in the bargaining agent.Notice of strike or notice of lock-out 30day cooling-period and 7-day strike ban.. This is what is strikingly different between the Kaisahan case and the (f) A decision to declare a strike case at bench for in the latter case. SECTION C. the union or the employer circumstances in this case should shall furnish the (Department) be considered as similar in nature the results of the volting at least to a “bargaining deadlock” when seven days before the intended no certification election could be date of strike or lockout. TO BARGAIN 5.e. ITS DUTY COLLECTIVELY. the notice of strike may be filed by any legitimate labor organization in behalf of its members. obtained had taken an action to legally coerce by secret ballot in meetings or the employer to comply with its referenda called for that purpose. there was “no reasonable effort in good faith” on the part of the employer to bargain collectively. There is a deadlock when there is a complete blocking or stoppage resulting from the action of equal and opposed forces xxx. Secretary of Labor and Employment. This is also to make sure that to the cooling-off period herein no floodgates will be opened for the provided. subject held. COLLECTIVE BARGAINING AGREEMENT 3. 263 (c). in case of dismissal from employment of union officers duly elected in accordance with the union constitution and bylaws. Definition of CIRCUMSTANCE. Xxx. E. -. 9. RULE V. the period of notice shall be 15 days and in the absence of a duly certified or recognized bargaining agent. charging the employer with unfair the duration of the dispute based on labor practice and conducting a strike substantially the same grounds in protest against the employer'’ considered when the strike or lockout refusal to bargain. does not conclude in agreement between the parties. the duly certified or recognized bargaining agent may file a notice of strike or the employer may file a notice of lock-out with the Ministry (Department) at least 30 days before the intended date thereof. Labor Code. – (pp) “Collective bargaining CBA COULD NOT BE CONCLUDED agreement” refers to the negotiated contract DUE TO THE FAILURE OF ONE between a legitimate labor organization and PARTY TO WILLINGLY PERFORM the employer concerning wages. xxx. Laguesma. hours of .’” If the law proscribes the conduct of a certification election when there is a bargaining deadlock submitted to conciliation or arbitration. BOOK V OF THE IMPLEMENTING RULES SHOULD 1. Art. 267 SCRA 503 (1997) In the case of Divine Word University of Tacloban vs. In every and equitable that the case. we had the occasion to define what a deadlock is.(c) In cases of bargaining deadlocks. picketing and lock-outs. Xxx The decision shall be valid for i.G. The word is synonymous with the word impasse. Definition – BE INTERPRETED LIBERALLY SO AS TO INCLUDE A Dept. the 15-day cooling off period shall not apply. WHERE A terms. which may constitute union busting where the existence of the union is threatened. bargaining unit concerned. and the union may take action accordingly. which xxx ‘presupposes reasonable effort at good faith bargaining which. However.2 Remedies . Order No. circumvention of the law by unscrupulous employers to prevent any certified bargaining agent from negotiating a CBA.A L E X Y L L E R O S E G A R S U L A – C O N C E P C I O N P a g e | 13 Capitol Medical Center Alliance of Concerned Employees vs.

After the signing by the panels. 2 & 5: (See also: B5 R9 S1. hours of work and all other terms and conditions of employment in a bargaining unit. and the courts must place a practical and realistic construction upon it. Labor Code. (a) Statement that the collective bargaining agreement was posted in at least two conspicuous places in the establishment at least five (5) days before its ratification. IRR) Section 1.2 The collective bargaining agreement should be signed by the members of both panels.The Bureau shall keep a registry of legitimate labor organizations. Art.1 2. is not merely contractual in nature but is impressed with public interest. Rules and Regulations. including mandatory provisions for grievances and arbitration machineries. except that the requirement of ratification and proof thereof shall be dispensed with.5 Note however that a CBA is valid even without certification. Such proof shall consist of copies of the following documents certified under oath by the union secretary and attested to by the union president. Section 5. A CBA. it must be construed liberally rather than narrowly and technically.00). “Collective bargaining agreement” refers to the negotiated contract between a legitimate labor organization and the employer concerning wages. 2. The Bureau shall have twenty (20) dyas within which to resolve the appeal and its decision shall be final and executory. it is not an ordinary contract to which is applied the principles of law governing ordinary contracts. Rule XVI. Signing and ratification 2.4 If certified CBA. Secs. a majority of the employees covered by the appropriate bargaining unit should ratify the same. B5 R1 S1 (jj). Thus. 231. -. Such copies of the agreement shall be accompanied with verified proof of posting in two conspicuous places in the work place and of ratification by the majority of all the workers of the bargaining unit. as a labor contract within contemplation of Art.000. 1700 of the Civil Code. -. giving due consideration to the context in which it is negotiated and the purpose which it is intended to serve.The decision of the Regional Director granting or denying an action to declare the registration ineffectual may be appealed to the Bureau on the ground of grave abuse of discretion within ten (10) days from receipt of the parties of a copy thereof. contract bar rule applies and operates as a bar to a representation question. the Commission or the Voluntary Arbitrator. -. Appeal. Registry of unions and file of collective agreements. Section 2. 220 SCRA 197 (1993) While the terms and conditions of a CBA constitute the law between the parties. As such. Davao Integrated Port Stevedoring vs. The Regional Office shall retain one (1) copy of the agreement for its file and transmit one (1) copy thereof tot he Bureau within five (5) calendar days from its registration. 9 (April 1997). 3. 2.Where the agreement results from an arbitration award.A L E X Y L L E R O S E G A R S U L A – C O N C E P C I O N P a g e | 14 work and all other terms and conditions of employment in a bargaining unit. 1. The Regional Office shall issue a certification of registration within five (5) calendar days from receipt of the agreement and the proofs of posting and ratification as required herein. Impl. the same shall be registered in accordance with the immediately preceding section.3 Note the posting requirement in at least two conspicuous places in the establishment at least five (5) days before its ratification 2. and (b) Statement that the collective bargaining agreement was ratified by the majority of the employees in the bargaining unit. – The parties to a collective bargaining agreement shall submit to the appropriate Regional Office two (2) duly signed copies thereof within thirty (30) calendar days from execution. Registration of collective bargaining agreement. it must yield to the common good. 2. and will be considered as binding upon the parties. The Bureau shall also . The Regional Office shall assess the employer for every collective bargaining agreement a registration fee of one thousand pesos (P1. Registration of agreement resulting from awards by the Secretary. Procedure in registration of CBA Dept. Abarquez. Order No.

Rule XIV.2 Representation question and the contract-bar rule Dept. Order No. or (b) The documents supporting its registration are falsified. the representation issue may be questioned by another union. 9.A L E X Y L L E R O S E G A R S U L A – C O N C E P C I O N P a g e | 15 maintain a file of all collective bargaining agreements and other related agreements and records of settlement of labor disputes. there is no proof tending to show that the CBA has been posted in at least 2 conspicuous places in the company at least 5 days prior to the ratification. Hence: IF NOT CERTIFIED AND FILED WITH THE BLR. 5. (same as Dept. Duration of the CBA (Art. who may avail of benefits Natl. 9. Brewers and Allied Industries Labor Union vs. 5. -. provided that no specific information submitted in confidence shall be disclosed unless authorized by the Secretary. Secs. be renegotiated not later than three (3) years after its execution. If any such provisions are . secs. or when it is at issue in any judicial litigation or when public interest or national security so requires. – Notwithstanding its registration. as a matter of right. secs. Rule XIV. 253-A. xxx 4. fraudulent or tainted with misrepresentation. 3-4) Article 253-A. sec. 3 All other provisions of said agreement shall. 9. and copies of orders. Moreover. Perusal of the facts show that the CBA was defective.3 Retroactivity – Dept. (CONTRACT BAR RULE)NO PETITION QUESTIONING THE MAJORITY STATUS OF THE INCUMBENT EXCLUSIVE BARGAINING REPRESENTATIVE SHALL BE ENTERTAINED AND NO CERTIFICATION ELECTION SHALL BE CONDUCTED BY THE DEPARTMENT OUTSIDE OF THE SIXTY-DAY PERIOD IMMEDIATELY BEFORE THE DATE OF EXPIRY OF SUCH FIVE-YEAR TERM. Dept. 9. ALU vs. Order No. 173 SCRA 178 CONTRACT BAR RULE DOES NOT APPLY WHERE THE CBA WAS NOT DULY SUBMITTED IN ACCORDANCE WITH LAW. and decisions of voluntary arbitrators. sec. and that there was precipitate haste in recognizing the union based on an unsubstantiated and self-serving claim that it represented the majority of the employees in the bargaining unit. and that the same was ratified by a majority of the members of the union. otherwise.The representation status of the incumbent exclusive bargaining representative which is a party to a duly registered collective bargaining agreement shall be for a term of five (5) years. Note that the Labor union’s representation was in itself questionable. a collective bargaining agreement shall not constitute a bar to a certification election where it is found in appropriate proceedings before the Regional Director that any of the following conditions exist: (a) The agreement contains provisions lower than the standards fixed by law. Dept. 9. unit are covered. The files shall be open and accessible to interested parties subject to conditions prescribed by the Secretary of Labor and Employment. Order No. Scope of the agreement. Section 4. contract-bar rule. Order No. Exception to the contract bar rule. Term of representation status of agreement. Rule XIV. San Miguel Brewery All employees in the barg. Moreover. 3 Any agreement on such other provisions entered into within six (6) months from the date of expiry of such provisions shall retroact to the day immediately following such date. Rule XIV. 3-4 Section 3.1 Economic provisions of the CBA term of 3 yrs. Rule XIV. and hence unproductive of the legal effects of a certified CBA. 3-4) 5. there was an apparent and suspicious hurry in the formulation and finalization of the CBA. regardless of their membership or nonmembership in the union. Order No. 5. discrimination. Ferrer-Calleja. Labor Code. cf.

What as emphasized by this Court is that in no case should there be a period in which no agreement would govern at all. But nowhere in the said pronouncement did We rule that every CBA contracted after the expiry date of the previous CBA must retroact to the day following such date. at 425 In the aforecited case. We are convinced that the CBA formulated by public respondent is fair. Jurisdiction of Voluntary Arbitrators or panel of Voluntary Arbitrators. the parties shall agree on the duration of retroactivity. it is proper to rule that in the case at bar. the Court only pointed out that. then non-strikeable and must be referred to the grievance machinery. the immediate effects of the mandated wage increase on the fringe benefits such as the 13th and 14th month pay. is not unmindful of these. Violations of the CBA (Art. it is not right for union members to argue that they cannot be covered by the past and the new CBAs both containing the same closed-shop agreement for acts committed during the interregnum. if not the highest in the industry. reasonable and just. the petitioner failed to establish that public respondent committed grave abuse of discretion in not giving the CBA a retrospective effect.The Voluntary Arbitrator or panel of voluntary arbitrators shall have original and exclusive jurisdiction to hear and decide all unresolved grievances arising from 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. except those which are gross in character. overtime premium. Petitioner claims that because of the prospective effect of the CBA. all requirements for registration prescribed under the two immediately preceding sections shall be complied with. Accordingly. -. Petitioner did not succeed in overcoming the presumption of regularity in the performance of the public respondent’s functions. the parties may exercise their rights under the Code. the clear and unmistakable terms of Articles 253 and 253-A must be deemed controlling. Nevertheless. 6. leaves. For purposes of this article. In case of a deadlock in the renegotiation of the agreement. If gross. If not gross. there being no new agreement reached. Even if the resolution fell short of meeting the numerous demands of the union.2 Exception: Strikeable issue when there is gross and flagrant refusal to comply with the economic provisions of the CBA Article 261. union members were deprived of substantial amount of monetary benefits which they could have enjoyed had the CBA be given retroactive effect. etc. This would include backwages. Hence: 6. 192 SCRA 397. the automatic renewal clause provided for by the law which is deemed incorporated in all CBAs. is one of the highest. Hence. said CBA still entitles the Nestle workers and employees reasonable compensation and benefits which. provides the reason why the new CBA can only be given a prospective effect. Union of Filipro Employees vs. In case of renegotiation.A L E X Y L L E R O S E G A R S U L A – C O N C E P C I O N P a g e | 16 entered into beyond six months. and right to differential pay. whichever is applicable. Even if prospective in effect. non-strikeable. then ULP and the union may strike.1 Generally: Grievances arising from interpretation or implementation of the CBA is no longer considered ULP and hence. NLRC. except payment of the registration fee. Articles 253 and 253-A mandate the 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 prior to the expiration of the old CBA and/or until a new agreement is reached by the parties. shall no longer be treated as unfair labor practices and shall be resolved as reviances under the Collective Bargaining Agreement. Consequently. Must be referred to grievance machinery and voluntary arbitrators 6. in the opinion of this Court. 261) Question: Is the violation of the CBA provisions a ULP as to allow the union to strike? Answer: It depends on whether the violation is gross in character or not. gross violations of the Collective Bargaining Agreement shall mean flagrant and/or malicious refusal to comply with the economic provisions of such . Labor Code. This Court. violations of a Collective Bargaining Agreement.

Secretary of Labor. enforceable against the successor-employer. But the substitutionary doctrine applies only E. had the corresponding obligation to pay them their respective separation pay. Effect: (w/ respect to successor. to whom employer) years of service had been rendered by its suddenly jobless employees. Substitutionary Doctrine Benguet Consolidated vs. not to the new SCRA 1 agent which is not bound by the purely personal undertakings of the displaced agent A CBA is a contract in “new employees”. The old employer. 7. 23 SCRA 465 The employees cannot revoke the validly executed CBA with their employer by the simple expedient of changing their bargaining representative. the successor-employer has the right to consider them 8.A L E X Y L L E R O S E G A R S U L A – C O N C E P C I O N P a g e | 17 agreement. General rule: . b) Liability arises because of new owner’s participation in defeating the rights of the employees. An innocent transferee of a business concern has no liability to the employees either with respect to continuing them in employment or with respect to the past ULP of previous owner. The CBA is binding for the period specified therein. Exceptions to above general rule: a) By virtue of obligations assumed under the contract. he is treated as in the same position of a tortfeasor. Razon vs. 222 to the employees of the unit. BCI Ees Union. In rehiring the workers of the old employer. but the new agent may bargain for the shortening of the period. not like the “no-strike clause” in the CBA. and therefore. In such instance.