Labor Law II

LEX LEONUM FRATERNITAS
1968
LABOR LAW II
PART I
INTRODUCTORY MATERIALS
Section 1. Introduction
1.1
Statutory Source and Interpretation
Statutory provisions of the Labor Code are construed liberally in favor

or EEs, unless otherwise intended by or patent from the language of
the statute itself. (Caltex Filipino Managers and Supervisors Assistant vs.
CIR)
1.2
Definitions
ER and EE
Art. 212 :
An ER Any person acting in the interest of the ER, directly or
indirectly. The term shall not include any labor organization or
any of its officers except when acting as an ER.
EE Any person in the employ of an ER. The term shall not be
limited to the EEs of a particular ER, unless this Code explicitly
states. It shall include any individual whose work has ceased as
a result or in connection with any current labor dispute or
because of fair labor practice if he has not obtained any other
substantially equivalent or regular employment.
Labor Organization and Legitimate Labor Organization
1. Art. 212 :
Labor Organization Any union for association of EEs which
exists for the purpose of collective bargaining or of dealing with
Es concerning terms and conditions of employment.
Legitimate Labor Organization Any labor organization
duly registered with the DOLE that includes any branch or local.
2. A local chapter becomes a legitimate labor organization
only upon submission of:
ACADEMIC ADVISERS: Political: Atty. Martinez ; Labor: Atty. Lorenzo ; Taxation: Atty. Cabaneiro ;
Criminal : Atty. Loyola ; Commercial : Atty. Loyola ;
Remedial: Atty. Perez ; Civil: Atty. Vista ; Legal Ethics: Atty. Loyola
Compiled and Edited by: Vice Amorsolo R. Camara Jr. and Nico Lagman
Through the indispensable efforts of San Beda and San Sebastian Brods

1968
A. Charter certificate within 30 days from its issuance by the

laborfederation or national union.
B. Constitution and by-laws, statement on set of officers, and
books of accounts which are certified under oath by
secretary or treasurer, and attended to by its president.
(Phoenix Iron vs. Secretary of Labor and Employment)
Labor Dispute
1. Art. 212 : Any controversy or matter concerning terms and
conditions of employment or the association or representation of
persons in negotiating, fixing, maintaining, changing or
arranging terms and conditions of employment, regardless of
whether the disputants stand in the proximate relation of ER and
EE.
2. What is the test to determine whether a labor controversy
comes within the definition of labor dispute?
It depends on whether it involves or concerns terms, conditions of
employment or representation. (Azucena)
1.3 Labor Relations Policy
1. What is the policy of the state with respect to the trade
unionism, collective bargaining and labor relations?
It is the policy of the State to :
A. Promote and emphasize the primacy of free Collective
bargaining
and
negotiations,
including
voluntary
arbitration, mediation and conciliation, as modes of
settling labor and industrial disputes.
B. Promote free trade unionism as an instrument for the
enhancement of democracy and the promotion of social
justice and development.
C. Promote the Enlightenment of workers concerning their
rights and obligations as union members and as EEs.
D. To provide an adequate administrative Machinery for the
expeditious settlement of labor or industrial peace.
E. To ensure a stable but dynamic and just Industrial peace.
F. To ensure the participation of Workers in Decision and
policy-making processes affecting their rights, duties and
welfare.
G. To encourage free trade Unionism and free collective
bargaining. (Art. 263)

1968
Collective bargaining Negotiations towards a collective

agreement designed to stabilize the relation between labor and
management and to create a climate of sound and stable
industrial peace. (Kiok Loy vs. NLRC)
The Secretary of Labor shall have the power and duty to inquire
into aspects of ER-EE relations concerning the promotion of
harmony and understanding between the parties. (Art. 273)
A line must be drawn between policies which are purely
business-oriented and those which affect the rights of EEs.
Workers and ERs shall, as far as practicable, be represented in
decision and policy-making bodies of the government. The
Secretary of Labor and Employment or his duly authorized
representatives
may
call
a
tripartite
conference
of
representatives of government, workers and EEs for the
consideration and adoption of voluntary codes of principles
designed to promote industrial peace or to align labor
movement relations with established priorities in economic and
social development. (Art. 275) (ME vs. CUPID)
Section 2. Right to Self-Organization

2.1
Constitutional Basis of Right
1. Art. III, Sec. 8, Const. : The right of the people, including those
employed in the public or private sectors, to form unions,
associations, or societies for purposes not contrary to law shall
not be abridged.
2. Art. XIII, Sec. 3, Const. : The State 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.
2.2 Coverage
I. Art. 243 : Coverage and EEs right to self-organization

1. All persons employed in commercial, industrial and agricultural
enterprises and in religious, charitable, medical, or educational
institutions --- whether operating for profit or not, shall have the
right to self-organization and to form, join or assist labor
organizations of their own choosing for purposes of collective
bargaining.
2. Ambulant, intermittent and itinerant workers, self-employed
people, rural workers and those without definite ERs may form
labor organizations for their mutual aid and protection.
II. Art. 244 : Rights of EEs in the public service

1968
1. EEs of government corporations established under the

Corporation Code shall have the right to organize and bargain
collectively with their respective ERs.
2. All other EEs in the civil service shall have the right to form
associations for the purposes not contrary to law.
III. Art. 245 :
1. Managerial EEs are not eligible to join, assist, or form any

labor organization.
2. Supervisory EEs shall not be eligible for membership in a
labor organization of the rank-and-file EEs but may join, assist
or form separate labor organizations of their own.
2.3 Extent and Scope of Right
I. Art. 246 : Non-abridgement of right to self-organization It
shall be unlawful for any person to :
1. Restrain
2. Coerce
3. Discriminate against or
4. Unduly interfere with EEs and the workers in their exercise of
the right to self-organization
II. The right to self-organization includes the right not to form or join a
union (Reyes vs. Trejano) However, by virtue of the operation or
enforcement of a closed shop clause in a CBA, an ER may be
compelled on pain of dismissal, to become a member of a labor union.
(Alcantara)
III. May an ER impose as condition for employment that the applicant
shall not join a labor organization or shall withdraw from the one he
belongs to?
No. Such a condition partakes of the nature of a yellow dog contract
and constitutes an unfair labor practice. It is interference with the
individuals right to self-organization. (Alcantara)
2.4 Workers with Right to Self-Organization for Purposes of
Collective Bargaining
All EEs
1. Art. 243 : All persons employed in commercial, industrial and
agricultural enterprises and in religious, charitable, medical, or
educational institutions whether operating for profit or not, shall
have the right to self-organization and to form, join or assist
labor organizations of their own choosing for purposes of
collective bargaining.

1968
2. The Macho hair Saloon refused to bargain with the union of the
barbershop composed of 8 barbers on the ground that the shop
was a service establishment and the number of the barbers was
less than 10. Is the contention tenable?
No. The law does not fix the minimum number of EEs for the
exercise of the right to self-organization and the right extends to all
types of establishments. (Alcantara)
3. The faculty members of a non-profit school converted their club
into a labor union. Is this allowed?
Yes. Even EEs in non-profit or religious organizations are entitled to
exercise this right. (Alcantara)
A. RELIGION
The right of the members of the Iglesia ni Kristo sect not to join a labor
union for being contrary to their religious beliefs does not bar the
members of that sect from forming their own union. (Kapatiran vs.
Calleja)
Government Corporation EEs

Art. 244 :
EEs
shall
their
Rights of EEs in the public service

of government corporations under the Corporation Code
have the right to organize and bargain collectively with
respective ERs.
Supervisors
1. Art. 245 : Supervisory EEs shall not be eligible for membership in a labor
organization of the rank-and-file EEs but may join, assist or form separate
labor organizations of their own.
[Supervisory EEs] Those, who, in the interest of the ER,

effectively recommend such managerial actions if in the exercise of
such authority is not merely routinary or clerical in nature but requires
the use of independent judgment. (Art. 212) The criterion which
determines whether a particular EE is within the definition of a statute
is the character of the work performed rather than the title or
nomenclature of position held. (NSRC vs. NLRC)
3. If the recommendation of the teacher area supervisor is subject to
evaluation, review and final approval of the principal, is the teacher a
supervisory EE?
No. This is merely ineffective or clerical recommendation. (Laguna

Colleges vs. CIR)

1968
4. Supervisors were given the job of either to assist the foreman if

the effective dispatch of manpower and equipment or execute
and coordinate work plans emanating from his supervisors. Are
these supervisors supervisory personnel?
No. They only execute approved and established policies leaving
little or no discretion at all whether to implement the said policies
or not. (Southern Philippines Federation vs. Calleja)
A. RIGHT TO ORGANIZE and LIMITATION

1. A supervisory union cannot represent the professional/technical
and confidential EEs whose positions are more of the rank and
file than supervisory. The professional/technical EEs may join
the existing rank and file union, or form a union separate and
distinct from the existing union organized by the rank and file
EEs. The intent of the law is to avoid a situation where
supervisors would merge with the rank and file, or where the
supervisors labor organization would represent conflicting
interests. (Philippine Phosphate vs. Torres)
2. The union of supervisory personnel affiliated with a national
federation. The local union of rank and file was also affiliated
with the said national federation. Is this allowed?
No. A local supervisors union should not be allowed to affiliate with
a national federation of union of rank and file EEs. Supervisors
should be given an occasion to bargain together with the rank and
file against the interests of the ER regarding terms and conditions
of employment. (Atlas Litographic vs. Laguesma)
Aliens
Art. 269 : Aliens working in the country with valid permits issued by
the DOLE, may exercise the right of self-organization and join or assist
labor organizations of their own choosing for purposes of collective
bargaining, provided, that said aliens are nationals of a country which
grants the same or similar rights to Filipino workers.
Security Guards
Security guards may join rank and file or supervisors union depending
on their rank. (MERALCO vs. Secretary of Labor and Employment)
2.5 Workers with no Right of Self-organization

1968
Managerial and Confidential EEs

1. Art. 245 : Managerial EEs are not eligible to join, assist, or from
any labor organization.
[Managerial EEs Those whose primary duty consists of the
management of the establishment of which they are employed or
of a department or subdivision thereof, and to other officers and
members of the managerial staff. (Art. 82)]
2. The nature of the job determines whether the EEs fall under the
definition of managerial. A managerial EE is one who is
vested with powers of prerogatives to lay down and execute
management policies and/or hire, transfer, suspend, lay-off,
recall discharge, assign or discipline EEs or to effectively
recommend such managerial actions. (SPFL vs. Calleja) The
rationale for this is that the union is not assured the loyalty of
managerial EEs in view of evident conflict of interests or that
the union can become company-dominated with the presence of
managerial EEs in the membership. (Golden Farms vs. Calleja)
3. Confidential EEs are also prohibited from forming unions. (Pier8
Arrastre vs. Confesor) Having access to confidential information,
they may become a source of undue advantage. They may act
as spies of either party to a CBA. These include accounting
personnel, radio and telephone operators and confidential
secretaries. (Golden Farms vs. Calleja)
4. The major patrons duties include taking complete charge and
command of the ship and performing the responsibilities of the
ship captain; the minor patron also commands the vessel, plying
the limits of island waterway, ports and estuaries. Are they
eligible to join or form a union?
No. The exercise of discretion and judgment in directing a ships
course is managerial in nature. (Association of Marine Officers vs.
Laguesma)
Worker/Member of Cooperative
The right to forming or joining a labor organization for purposes of
collective bargaining is not available to an EE of a cooperative who at
the same time is a member and co-owner thereof. It is the fact of
ownership of the cooperative and not the involvement in the
management thereof, which disqualifies a member from joining any
labor organization within the cooperative with respect however, to

1968
EEs who are neither members or co-owners, they are entitled to the
rights of self-organization for purposes of collective bargaining
(Benguet Electric vs. Ferrer-Calleja). However, a member/owner has the
right to withdraw as owner of the cooperative for purposes of joining
the union (Central Negros Electric vs. Of DOLE).
Non-EEs
Art. 243 : Ambulant, intermittent and itinerant workers, self-employed
people, rural workers and those without definite ERs may form labor
organizations for their mutual aid and protection. However, they are
not entitled to the constitutional right to join or form a labor
organization for purposes of collective bargaining. (Singer vs. Drilon)
2.6 Part Protected
It is well-settled doctrine that the benefits of a CBA extend to the
laborers and EEs in the collective bargaining unit, including those
who do not belong to the chosen bargaining labor organization. (MWU
vs. Aboitiz)
2.7 Sanctions for Violation of Right
1. Art. 248 : It shall be unlawful for an ER to interfere with,
restrain or coerce EEs in the exercise of their right to selforganization.
2. Art. 249 : It shall be unfair labor practice for a labor
organization, its officers, agents and representatives to restrain
or coerce EEs in the exercise of their rights to self-organization.
3. Art. 288 : Penalty
Fine of not less than P1,000.00 nor more than P10,000.00
Imprisonment of not less than 3 months nor more than 3
years, or
Both, at the discretion of the court.
In addition to such penalty, any alien found guilty shall be summarily
deported upon completion of service.
Any provision of the law to the contrary notwithstanding any

criminal offense punished under this Code shall be under the
concurrent jurisdiction of the Municipal or City Courts and the RTC.
4. Art. 289 : If the offense is committed by a corporation, trust,
firm, partnership, association or any other entity, the penalty
shall be imposed upon the guilty officer or officers of such
corporation, trust, firm, partnership, association or entity.
Section 3. Labor Organization


1968
3.1 Policy
Sec. 211 : It is a policy of the State to :
1. Promote free trade unionism as an instrument for the
enhancement of democracy and the promotion of social justice
and development.
2. Foster the free and voluntary organization of a strong and united
labor movement.
3.2 Labor Organization - Unions
Definitions
A. LABOR ORGANIZATION
Art. 212 : Any union or association of EEs which exist for the purpose
of collective bargaining or of dealing with ERs concerning terms and
conditions of employment.
B. LOCAL UNION
Sec. 1, Rule I, Book V, IRRs : Any labor organization operating at
the enterprise level.
C. NATIONAL UNION FEDERATION

Sec. 1, Rule I, IRRs : Any labor organization with at least 10 locals
or chapters each of which must be duly recognized bargaining agent.
D. LEGITIMATE LABOR ORGANIZATION

Art. 212 : Any labor organization duly registered with the DOLE, and
includes any branch or local thereof.
D.1 Dole Registration Basis

A labor organization acquires legitimacy only upon registration with
the DOLE. (Progressive Development vs. Secretary of Labor and
Employment) A SEC registration cannot suffice. (Cebu Seamens
Association vs. Ferrer-Calleja)
E. COMPANY UNION

1968
Art. 212 : Any labor organization whose information, function or

administration has been assisted by any act defined as ULP by this
Code.
3.3 Union Rationale
When is a labor organization wholesome? A labor organization is
wholesome if it serves its legitimate purpose of promoting the
interests of labor without unnecessary labor disputes. That is why it is
given personality and recognition in concluding CBAs. but if it is made
use as a subterfuge, or as a means to subvert valid commitments, it
defeats its own purpose, for it tends to undermine the harmonious
relations between management and labor. (United Seamens Union vs.
Davao Shipowners Association)
3.4 Labor Union and Government Regulation
Union Registration and Procedure Requirements

What are the requirements
organization? Art. 234 :
for
registration
of
labor
Any applicant labor organization shall acquire legal personality and

shall be entitled to rights and privileges of legitimate labor
organizations upon issuance of a certificate of registration upon
submission of the following requirements:
A. Registration Fee
B. Names of its officers, addresses, principal address of the
organization, minutes of meetings and list of workers who participated
in meetings.
C. Names of all its members comprising at least 20% of all its EEs in
the bargaining unit.
D. Copies of annual financial reports if union has been in existence for
more than 1 year.
E. Copies of constitution and by-laws.
Sec. 3, Rule II, Book V, IRRs : Sworn statement by applicant union
that there is no certified bargaining agent in bargaining unit
concerned. When there is an existing CBA duly submitted to the DOLE,
a sworn statement that the application for registration was filed during
the last 60 days of the agreement.
The application and all accompanying documents shall be
verified under oath by the secretary or the treasurer as the case
may be, and attested to by the president. (Id.)
II. What are the additional requirements for federations or
national unions?
A. Proof of affiliation of at least 10 local chapters.
Each of which must be a duly recognized collective bargaining

agent in the establishment or industry in which it operates.

1968
B. Names and addresses of the companies where the

locals or the chapters operate and list of all the
members in each company involved.
III. What is the period for action on application? 30 days from

filing (Art. 235)
A. REQUIREMENT AND RATIONALE

Registration is a condition sine qua non for the acquisition of legal
personality by a labor organization. (Protection Technology vs.
Secretary of Labor and Employment) However, it is not a limitation on
the right of assembly or association which may be exercised with or
without said registration. (PAFLU vs. Sec. of Labor) The statutory and
regulatory provisions of defining the requirements 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 that recruit them. (Protection Technology vs. Sec. of Labor) or
fly-by-night unions whose sole purpose is to control union for dubious
ends. (Phoenix Iron vs. Sec. of Labor and Employment)
Action or Denial of Application, and Remedy

1. Sec. 6, Rule II, Book V, IRRs : Any applicant union may
appeal to the Bureau the denial of registration by the Regional
Office, or to the secretary if the denial is by the Bureau, within
10 calendar days from receipt of such decision on grounds of :
A. grave abuse of discretion ; and
B. gross incompetence
The appeal shall be filed in the Regional Office/Bureau which
shall cause the transmittal of records to the Bureau/Secretary
within 5 calendar days from receipt of the appeal.
The Bureau/Secretary shall decide the appeal within 20 calendar
days from receipt of the records of the case.
2. Can the Regional Office/Bureau exercise discretion in the
registration of the applicant union?
No. As long as the applicant union complies with all the legal
requirements for registration, it becomes the Offices/Bureaus
ministerial duty to do register the union. (Vassar vs. Estrella)
Effects on Freedom of Association

1968
While disaffiliation from a labor union is not open to legal

objection, since it is implicit in the freedom of association
ordained in the Constitution, a closed shop agreement is
a valid form of union security and is not a restriction of
the right of freedom of association guaranteed by the
Constitution.
Rights of Legitimate Labor Organization [REFOSAF]
I. What are the rights of legitimate labor organization?
A. Act as Representative of its members in collective bargaining
B. To be certified as the Exclusive representative of all the EEs in an
appropriate collective bargaining unit for purposes of collective
bargaining.
C. To be furnished by the ER, upon written request, with its annual
audited financial statements, including the balance sheet and the
profit and loss statement, within 30 calendar days from the date of
receipt of request
After the union has been duly recognized by the ER or certified
as the sole and exclusive bargaining representative of the EEs
in the bargaining unit, or
Within 60 calendar days before the expiration of the existing
CBA, or
During the collective bargaining negotiation.
D. To own property for the use and benefits of the labor organization
and its members.
E. To sue and be sued in its registered name.
F. To undertake all other Activities designed to benefit the organization
and its members.
G. Its income and properties which are directly and exclusively used for their
lawful purposes, shall be free from taxes, duties and other assessments. The
exemptions provided herein may be withdrawn only be a special law
expressly repealing this provision. (REFOSAF)
II. Can the union effect a compromise of the money claims of

workers?
Money claims due to laborers cannot be the object of settlement or
compromise effected by a union or counsel without the specific
individual consent of each laborer concerned. (Kaisahan ng mga
Manggagawa sa La Campana vs. Sarmiento)
III. May a union waive a right of union members to reinstatement
provided for in an NLRC decision?

1968
No, the waiver of reinstatement, must be regarded as a personal right

which must be exercised personally by workers themselves. (Jag vs.
NLRC)
A. EFFECT OF NON-REGISTRATION
Union, must comply with all the requirements of registration as a
legitimate labor organization. (Protection Technology vs. Sec. of Labor &
Employment). However, if the union has filed application for
registration and has submitted all the legal requirements, the fact that
it does not yet have the certificate of registration will not annul the
designation of the labor union as sole bargaining agent by the virtue
of a certification election since the defect is not fatal. (UE Automotive
EEs vs. Noriel)
Cancellation of the Union Certificate Registration
I. What are the grounds for its cancellation of union

registration by the Bureau?
1. Misrepresentation, false statement or fraud by the union with
respect to the required documents submitted to the Bureau.
2. Failure to submit the documents within 30 days from adoption or
ratification of the constitution and by-laws or amendments
thereto.
3. Misrepresentation, false statements or fraud in connection with
the election of officers, minutes of the elections and list of voters
of failure to submit these documents within 30 days from
election [or from the occurrence of any change in the list of
officers of the labor organization (Art. 241)].
4. Failure to submit annual financial report within 30 days after
closing of fiscal year and misrepresentation of fraud in the
preparation of the financial report.
5. Acting as labor contractor of cabo system.
6. Entering into CBAs which provide terms and conditions of
employment below minimum standards.
7. Asking for or accepting attorneys fees or negotiation fees from
ERs.
8. Other than for mandatory activities under this Code, Checking of
special assessment or other fees without duly signed individual
written authorization of members.

1968
9. Failure to submit list of individual members once a year or when

required (MACED MALL)
II. If a union declares an illegal strike, is this a good ground for
cancellation of union registration?
No. While Art .239 provides the phrase acting as a labor contractor
or otherwise engaging in any activity prohibited by law, this phrase
refers to an activity partaking the nature of a labor contractor. Thus,
an illegal strike is not one of the grounds for cancellation of
registration. (Itogon-Sayoc vs Sangilo-Itogin Workers Union)
3.5 International Activities of Union Prohibition and Regulation
I. What activities by aliens are prohibited?

All aliens, whether natural or juridical 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. The prohibition does not apply to the formation of labor
organizations by aliens working in the country with valid working
permits. (Art. 269)
Trade Union Activities shall mean :
1. organization
formation
and
administration
of
labor
organizations;
2. negotiation and administration of CBAs;
3. all forms of concerted union action;
4. organizing, managing or assisting union action;
5. any form of participation or involvement in representation
proceedings, representation elections, union elections; and
6. other analogous activities. (Art. 270)]
II. What activities by aliens are regulated?

No foreign individual, organization or entity may give any form
of assistance, in cash or in kind directly or indirectly, to any labor
organization, group of workers or any auxiliary thereof, such as
cooperatives, credit unions and institutions engaged in research,
education or communication, in relation to trade union activities,
without prior permission by the Sec. of Labor
This prohibition also applies to foreign donations or other forms
of assistance, in cash or in kind, given directly or indirectly to
any ER or ERs organization to support any activity or activities
affecting trade unions.
III. The strike declared by Union M has reached its 60 th day. Taking pity
on the hungry and sick strikers, B and G, French missionaries,

1968
distributed food and drinks to the strikers. Has any one committed any
illegal act?
Yes. B and G, distributing food and drinks to the strikers violated the
prohibition against aliens from engaging directly or indirectly in all
forms of trade union activities. The term trade union activities
includes all forms of concerted union actions and analogous activities.
(Alcantara)
3.6 Union-Member Relations
Nature of Relationship
The union may 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. (Heirs of Cruz vs. CIR)
Rights of Union Members

Summarize the basic rights of union members :
1. Political right Members right to vote and be voted for,
subject
to
lawful
provisions
on
qualifications
and
disqualifications.
2. Deliberative and decision-making right Members right to
participate in deliberations on major policy questions and decide
them by secret ballot.
3. Right over money matter Members right against excessive
fees, right against unauthorized collection of contributions or
unauthorized disbursements; the right to require adequate
records of income and expenses and the right of access to
financial records; the right to vote on proposed special
assessments and be deducted a special assessment only with
the members written authorization.
4. Right to information Members right to be informed about
the organizations constitution and by-laws and the CBA and
about labor laws.
Issues
A. ADMISION AND DISCIPLINE OF MEMBERS
1. Art. 249 : A labor organization shall have the right to prescribe
its own rules and with respect to the acquisition or retention of
membership.

1968
2. Art. 277 : Any EE, whether employed for a definite period or

not, shall, beginning on his 1 st day of service, be considered an
EE for purposes of membership in any labor union.
A. 1. Admission
1. Labor unions are not entitled to arbitrarily exclude qualified
applicants for membership, and a closed-up provision would not
justify the ER in discharging, or a union in insisting upon the
discharge of it, an EE whom the union refuses to admit to
membership, without any reasonable ground therefor. Thus,
while generally the State may not compel the union to admit the
individual as a member, this scenario is not an exception to that
general rule. (Salunga vs. CIR)
2. The unions constitution and by-laws provides that no individual
who previously belonged to another union may be admitted as
member thereof. Is this provision valid?
No. While a union is in general free to select its own members, it
cannot impose arbitrary and discriminatory conditions for
admission to membership. It is very clear that the provision
discriminates against an individual for having exercised his right to
self-organization. (Alcantara)
3. The union constitution and by-laws provides that only EEs with 2
years service in the company are eligible for membership
therein. Is the provision valid?
No. The provision is an unreasonable restriction on the workers
exercise of his right to self-organization. It would have those who
have less than 2 years of service without representation in
bargaining with the ER. (Alcantara)
A. 2 Due Process Rules

1. An officer or a member of a labor union is entitled to due
process before he can be expelled. The member of the labor
union may be expelled only for a valid cause and by following
the procedure outlined in the constitution and by-laws of the
union. (Kapisanan ng mga Mangagawa vs. Bugay)
2. The union constitution and by-laws provides that a member may
be expelled from the union upon a vote of 2/3 of all the
members. Is the rule valid?
No. The expulsion of a union member cannot be made to depend
upon the whims and caprices of cp-members. It must be founded
on some just and serious grounds. (Alcantara)
3. 5 regular EEs were dismissed allegedly pursuant to a union
security clause. They had previously been expelled from the

1968
union for attempting to oust the union leadership, but they were
not given an opportunity to explain their side. The company also
did not conduct an investigation into the matter. Is the dismissal
of the EEs lawful?
No. The union should have given them an opportunity to explain
their side before expelling them. And the company should have
complied with procedural due process before dismissing them.
(Ferrer vs. NLRC)
B. ELECTION OFFICERS QUALIFICATION, TENURE AND
COMPENSATION
Give the rules of the Labor Code governing union officers :
1. The members shall directly elect their officers, including those of

the national union or federation, to which they or their union is
affiliated, by secret ballot at intervals of 5 years.
No qualification requirements for candidacy to any position shall
be imposed other than membership in good standing.
No person who has been convicted of a crime involving moral
turpitude shall be eligible for election or appointment as a union
officer. [Moral turpitude Act of baseness, vileness or
depravity in the private of social duties which a men owes to his
fellowmen, or to society in general. (Tak vs. Republic)
The officers of any labor organization shall not be paid by
compensation other than the salaries and expenses due their
positions as specifically provided in the constitution and by-laws,
or in a written resolution duly authorized by the majority of all
the members at a general membership meeting duly called fort
he purpose.
o Any irregularity in the approval of the resolution shall be a
ground for impeachment or expulsion from the
organization. (Art. 241)
B.1 Voters List

Submission of the EEs names with the BLR as qualified members of
the union not a condition sine qua non to enable said members to vote
in the election of union officers. Question of eligibility to vote may be
determined through the use of applicable payroll period and EEs
status. (Tancinco vs. Ferrer-Calleja)
B.2 Disqualification of Candidates

Disqualification of winning candidates will not automatically result in
the assumption of office of those who garnered the second highest
number of votes. (Manalad vs. Trajano)

1968
B.3 Expulsion Remedy

Remedy against erring union officers is not referendum but union
expulsion. However, re-election of union officers and non-election of
complaining union members is convincing show of faith on union
officers leadership. (KMP vs. Trajano)
B.4 Election Invalid

1. Free and honest elections are indispensable to the enjoyment of
EEs and workers of their right to self-organization. This right will
be diluted if the election is not fairly and honestly conducted.
Thus, elections for union officers attended by grave irregularities
are invalid. (Rodriguez vs. BLR)
2. Will failure to comply with the technical requirements or
formalities in relation to the election of union officers invalidate
the election? No, as long as it does not appear that such failure
resulted in the deprivation of any substantial right or prerogative
of anyone or caused the perpetration of fraud or other serious
anomaly, or preclude the expression and ascertainment of the
popular will in the choice of officers. (Timbungco vs. Castro)
B.5 Qualification of Union Officers

Atty. R won a big case for the union at the University of the West. He
became very popular with the union members that they elected him
as union president. Is this allowed?
No. Atty. R is not an EE of the University. He is disqualified from
becoming an officer of any union therein. (Alcantara)
C. MAJOR POLICY MATTER

1. Art. 241 : The members shall determine by secret ballot, after
due deliberation, any question of major policy affecting the
entire membership of the organization, unless the nature of the
organization or force majeure renders such secret ballot
impractical.
In which case the board of directors of the organization may
make the decision in behalf of the general membership.
2. Z, a member of a union was surprised to know that the union
had disaffiliated with the national federation. Has Z any ground
to complain?
Yes. As union member, he has the right to participate, by secret
ballot, to determine any question of major policy affecting the
entire membership. Disaffiliation is a major policy issue. (Alcantara)

1968
D. UNION FUNDS
Give the rules of the Labor Code governing union funds :
1. The members shall be entitled to full and detailed reports from

their officers and representatives of all financial transactions.
2. No officer, agent or member of a labor organization shall collect
any fees, dues or other contributions in its behalf or make any
disbursement of funds unless he is duly authorized by the
constitution and by-laws.
3. Every payment of fees, dues or other contributions by a member
shall be evidences by a receipt signed by the officer or member
making the collection and entered into the record of the
organization.
4. 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 a majority of the members at a
general meeting duly called for the purpose.
5. Every income or revenue of the organization shall be evidenced
by a record showing its source or by a receipt from the person to
whom payment is made.
6. Any action involving the funds of legitimate labor organization
shall prescribe after 3 years from date of submission of the
annual financial report to the DOLE or from date the same
should have been submitted, whichever comes earlier.
7. The treasurer shall render 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. The
account shall be duly audited and verified by affidavit and a
copy shall be rendered by the DOLE. The rendering of the
account shall be made :
a. At least once a year and within 30 days after the close of
its fiscal year.
b. At such other times as may be required by a resolution of
the majority of the members of the organization.
c. Upon vacating his office.
8. The books of accounts and other financial records shall be open
to inspection by any officer or member thereof during office
hours.
9. 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 membership meeting
duly called for the purpose.
a. The secretary shall record the minutes of the meeting
which shall be attested by the president.

1968
10.
Other than for mandatory activities under this Code, no
special assessments, attorneys fees, negotiation fees or any
other extraordinary fees may be checked off from the amount
due to an EE without an individual written authorization duly
signed by the EE.
11.
The Sec. of Labor or his duly authorized representative is
hereby empowered to inquire into the financial activities of the
legitimate labor organization upon filing of a complaint under
oath and duly supported by a written consent of at least 20% of
the total membership to determine compliance with the law.
a. Such inquiry shall not be conducted during the 60-day
freedom period within the 30 days immediately preceding
the date of election of the union officials.
D.1 Source-Payment-Attorneys Fees

1. Payment of attorneys fees is an obligation of the union and not
of the EEs. Money of EEs are not to be used to pay attorneys
fees of a lawyer. (Pacific Bank vs. Clave)
2. Atty. S was hired by a union to assist its president in negotiating
a CBA. After the execution of the CBA, Atty. S sought to collect
his attorneys fees out of the benefits due to the EEs by virtue
of the agreement. Is this proper?
No. Atty. Ss claims for attorneys fees should be satisfied out of the
funds of the union. (ALU vs. NLRC)
D.2 Source-Payment-Special Assessment

1. Written resolution of a majority of all members of the union at a
general membership meeting, required for validity of levy of a
special assessment. (Palacol vs. Ferrer-Calleja)
2. The law does not require that disauthorization must be in
individual form. (Id.)
3. The Board of Directors of a union passed a resolution assisting
every union member of P2.00 to be used in the purchase of a
birthday gift for the courageous lawyer of the union. The union
members refused to pay assessment. Is the refusal justified?
Yes. The assessment was not authorized by a written resolution of
a majority of all the members at a general membership meeting for
the purpose.
4. At a general membership meeting, a majority of the members of
the union voted for a written resolution assessing each member
P5.00. A member who did not vote affirmatively and did not
execute an individual written authorization refused to pay the
same. Is his refusal justified?

1968
No. He is bound by the resolution. However, the absence of a

written check-off authorization means that the assessment cannot
be deducted by the ER from his wages or other amounts due him,
but he is still obliged to pay the same. (Alcantara)
E. MANDATORY ACTIVITY
Art. 214 : Other than for the mandatory activities under the Code : no
special assessment, attorneys fees, negotiation fees or any other
extraordinary fees may be checked off from any amount due to an EE
without an individual written authorization duly signed by the EE.
E.1 Definition
What is a mandatory activity? Judicial process of settling dispute
laid down by law. (Vengco vs. Trajano)
E.2 CBA Negotiation

1. Placement of re-negotiation for a CBA under compulsory process
does not make it a mandatory activity as to authorize checkoff from EEs salary for attorneys fees without written, signed
authorization. (Galvadores vs. Trajano)
2. May a union collect union service fee for its appearance in
labor proceeding?
Yes. This is in accordance with the liberalized scheme and theory of
representation for labor. (RCPI vs. Sec. of Labor and Employment)
F. UNION INFORMATION
Art. 241 : It shall be the duty of any labor organization and its officers
to inform its members on the :
1. Provisions of its constitution and by-laws.
2. CBA
3. Prevailing labor relations system and
4. All their rights and obligations under existing labor laws.
For this purpose, registered labor organizations may assess
reasonable dues to finance labor relations seminars and other labor
education activities. (Responsibility of officers for dissemination of
union information and for respect of the law is greater than that of the
members. (NLU vs. Continental Cement)

1968
Enforcement and Remedies Procedure and Sanctions

1. Art. 241 : Any violation of the above rights and conditions of
membership shall be a ground for cancellation of union
registration or expulsion of officer from office, whichever is
appropriate. At least 30% of all the members or any member or
members especially concerned may report such violation to the
Bureau.
Criminal and civil liabilities arising from violations of above
rights and conditions of membership shall continue to be under
the jurisdiction of ordinary courts.
2. When is the 30% requirement not needed? When such
violation directly affects only 1 or 2 members, then only 1 or 2
members would be enough to report such violation and seek
redress. (Kapisanan ng mga Manggagawa vs. Bugay)
A. JURISDICTION EXHAUSTION INTERNAL REMEDIES

I. In case of intra-union disputes, redress must first be sought within
the organization itself in accordance with its constitution and by-laws.
(Villar vs. Inciong)
II. What are the exceptions to the exhaustion of internal

remedies?
1.
2.
3.
4.
5.
6.
Futility of intra-union remedies.

Improper expulsion procedure.
Undue delay in appeal as to constitute substantial injustice.
When action is for damages.
Lack of jurisdiction of the investigating body.
When action of administrative agency is patently illegal,
arbitrary and oppressive.
7. When issue involves is a pure question of law.
8. Where administrative agency has already prejudged the case.
9. Where the administrative, agency was practically given an
opportunity to act on the case but did not. (Azucena)
3.7 Union Affiliation, Local and Parent Union Relations
I. Sec. 3, Rule II, Book V, IRRs : An affiliate of a labor federation or
national union may be a local or an independently registered union.
RULES:
1. The labor federation or national union shall issue a charter

certificate which shall be submitted to the Bureau within 30 days
from issuance.
2. An independently registered union shall be considered an
affiliate after submission to the Bureau of the contract or
agreement of affiliation within 20 days after its execution.

1968
3. All existing labor federations or national unions are required to

submit a list of their affiliates, their addresses and including the
names and addresses of their respective officials.
4. The local or chapter of a labor federation or national union shall
maintain a constitution and by-laws, set of officers and books of
accounts.
5. No person who is not an EE or worker of the company or
establishment where an independently registered union,
affiliate, local or chapter of a national federation or national
union operates shall henceforth be elected or appointed as an
officer of such union, affiliate, local or chapter.
Affiliation; Purpose of; Nature of relations
A. NATURE OF RELATIONSHIP
The mother union is merely an agent of the local union. (NAFLU vs.
Noriel)
B. EFFECT LEGAL PERSONALITY

Affiliation by a duly registered local union with a national union or
federation does not make the local union lose its legal personality.
Furthermore, notwithstanding affiliation, the local union remains the
basic unit to serve the common interest of all its members. (Adamson
vs. CIR)
Local Union Disaffiliation

A. NATURE RIGHT DISAFFILIATION
The right of a local union to disaffiliate from its mother union is
consistent with the constitutional guarantee of freedom of association.
(Volkschel Labor Union vs. BLR)
B. RULE LEGALITY ACT - DISAFFILIATION

The validity of the legal union disaffiliation is to be determined
on the basis of the provisions of the constitution and by-laws of the
local union with respect to the process of disaffiliation. (Liberty Cotton
Mills Workers Union vs. Liberty Cotton Mills)

1968
C. MINORITY DISAFFILIATION
Generally, a labor union may disaffiliate from the mother union
only during the 60-day period immediately preceding the expiration of
the CBA (Tanduay vs. NLRC). However, a mere minority cannot file a
petition for a union disaffiliation, even within the prescribed 60-day
period before the expiry of an existing CBA. (Villar vs. Inciong)
D. EFFECT OF DISAFFILIATION SUBSTITUTIONARY

DOCTRINE
What is the substitutionary doctrine? EEs cannot revoke the
validly executed CBA with their ER by the simple expedient of
changing their bargaining agent. (NAFLU vs. Noriel) Thus, the CBA
continued to bind the members of the new of disaffiliated and
independent union up to the CBAs expiration date. (Associated
Workers Union vs. NLRC) However, the substitutionary doctrine is not
applicable to the personal undertaking of the deposed union i.e. nostrike stipulation. (Benguet Consolidated vs. PAFLU)
Section 4. The Appropriate Bargaining Unit

4.1 Law and Definition
Define the appropriate bargaining unit : Group of EEs of a
given ER, comprised of all or less than all of the entire body of EEs,
consistent wit the equity to the ER, indicated to be the best suited to
serve the reciprocal rights and duties of the parties under the
collective bargaining provisions of the law. (SMC vs. Laguesma) Within
one unit there may be one or more unions, but for bargaining with the
ER only one union the majority of incumbent union should
represent the whole bargaining unit. (Azucena)
4.2 Determination of Appropriate Bargaining Unit
Factors Unit Determination

The fundamental factors in determining the appropriate
collective bargaining unit are : [W A P E]
1. Will of the EEs.
2. Affinity and unity of the EEs interest, such as substantial
similarity of work and duties, or similarity in compensation and
working conditions.
3. Prior collective bargaining history.
4. Similarity of employment status,
probationary and seasonal EEs.
such
as
temporary,

1968
Among these factors, the Supreme Court has consistently ruled

that the test of grouping is mutuality or commonality of interests. The
EEs 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 perform. (SMC vs.
Laguesma) In this respect, the basic test of an asserted bargaining
units acceptability is whether or not it is fundamentally the
combination which will best assure to all the EEs the exercise of their
collective bargaining rights. (Belyca vs. Ferrer-Calleja)
1. In making judgments about community of interest in these different
settings, the Bureau of Labor and Relation will look to such factors as :
1. Similarity in the scale and manner of determining

earnings.
2. Similarity in employment benefits, hours of work, and
other terms and conditions of employment.
3. Similarity in the kinds of work performed.
4. Similarity in the qualifications, skills and training of EEs.
5. Frequency of contact or interchange among the EEs.
6. Geographic proximity.
7. Continuity or integration of production processes.
8. Common supervision and determination of labor-relations
policy. History of collective bargaining.
9. Extent of union organization. (Azucena)
2. A cigar manufacturing company has 7 departments, namely

administrative, raw leaf, cigar, cigarette, engineering and
garage, dispensary and sales. May the rank-and-file in the
administrative, sales and dispensary be grouped separately from
the rank-and-file of the other departments?
Yes. They are engaged in work different from those performed in
the other departments. Thus, they have a community of interest
different from that of the other departments. (Alhambra vs. PAFLU)
3. Golden Farm has 2 sets of EEs : monthly-paid clerical workers
and daily-paid agricultural workers. May the monthly-paid EEs
constitute a separate bargaining unit?
Yes. The monthly-paid EEs have very little in common with the
daily-paid EEs in terms of duties and obligations, working
conditions, salary rates, and skills. (Golden Farms vs. Sec. of Labor)
4. May the non-academic personnel of UP be joined with the
academic personnel?
No. The 2 groups do not have community or mutuality of interests.
(UP vs. Ferrer-Calleja)
Unit Severance and the Globe Doctrine

1968
What is the Globe Doctrine? The relevancy of the wishes of the

EEs concerning their inclusion or exclusion from a proposed
bargaining unit is inherent in the basic right of self-organization. While
the desire of EEs with respect to their inclusion in bargaining unit is
not controlling it is a factor which would be taken into consideration in
reaching a decision.
Single or ER Unit is Favored

1. It has been the policy of the Bureau to encourage the
information of an ER unit unless circumstances otherwise
require. The proliferation of unions in an ER unit is discouraged
as a matter of policy unless there are compelling reasons which
would deny a certain class of EEs the right to self-organization
for purposes of collective bargaining. (Philtranco vs. BLR)
2. It is proposed in a certification election that the professors of L.
College be grouped into 2 units : high school and college
professor. The proposal is based on the fact that the rules
governing the 2 are different, that the set up of the 2
departments are different and that the manner of their payment
is different. This proposal is opposed on the following grounds :
that the 2 departments are under the control of only 1 board of
trustees; that they are housed in the same building; that there is
but 1 cashier and registrar for the 2 departments; that there are
teachers who are teaching in both departments; that the
elementary department would be left without a bargaining
representative; and that there are only 130 teachers involved in
the proceedings. How many bargaining units should there be?
The facts show community of interests of the teachers in the
college and high school departments. Beside, the establishment of
separate units would leave the elementary teachers without a
bargaining representative. And considering that there are only 130
teachers, the division of the bargaining unit dissipate their strength
for collective bargaining purposes. Finally, the ER would be
contending with 2 different unions vying for each other for better
benefits to gain more members. (Laguna College vs. CIR)
Two Companies with Related Businesses

Two corporations cannot be treated as a single bargaining unit
even if their business are related. (Diatogon vs. Ople) However, when if
in reality, the companies constitute a single business entity i.e. 3
corporations acting as security agencies were under the same
management and had interlocking incorporators and officers, the veil
of corporate fiction may be lifted for the purpose of allowing the EEs
to form a single union and be part of a single bargaining unit. (PSVSIA
vs. Torres)

1968
Section 5. Union Representation : Establishing Union

Majority Status
5.1 Pre-condition ER-EE Relationship
The duty to bargain collectively exists only between the ER and its
EEs. When there is no duty to bargain collectively, it is not proper to
hold certification election in connection therewith. (PLUM vs. Compania
vs. Maritima)
5.2 Methods of Establishing Majority Status
Elections Certification Election ; Consent Election ;

and Run-Off Election
Define certification election, consent election, and run-off
1. Certification Election Process of determining through secret
ballot, the sole and exclusive bargaining agent of the EEs in an
appropriate bargaining unit, for purposes of collective
bargaining. (Certification proceedings directly involve two
issues):
a. proper composition and constituency of the bargaining
unit; and
b. validity of majority representation claims of the asserted
bargaining representative or of competitive bargaining
representative. (Azucena)
2. Consent Election Election voluntarily agreed upon by the
parties to determine the issue of majority representation of all
the workers in the appropriate bargaining unit.
3. Run-Off Election between the labor unions receiving the 2
highest number of voted when a certification election which
provides for 3 or more choices results in no choice receiving a
majority of the valid votes cast.
Exclude spoiled ballots
where the total number of votes for all contending unions is at
least 50% of the number of votes cast.
Distinguish consent election from certification election : A
consent election is an agreed one; its purpose being merely to
determine the issue of majority representation of all the workers in the
appropriate collective bargaining agent of all the EEs in the
appropriate bargaining unit for the purpose of collective bargaining.
(Warren Workers Union vs. BLR)
Policy

1968
A. NO DIRECT CERTIFICATION
Direct certification is no longer allowed as a method of selecting
the bargaining agent. Where a union has a filed petition for
certification election, the mere fact that no opposition is made does
not warrant a direct certification. (CENECO vs. Sec. of Labor)
B. EFFECT OF ONE UNION ONLY

Certification election is the best and most appropriate means of
ascertaining the will of the EEs as to their choice of an exclusive
bargaining representative. That there are no competing unions
involved should not alter that principle, the freedom of choice of the
EEs being the primordial consideration besides the fact that the EEs
can still choose between union and no union. (George and Peter
Lines vs. ALU)
C. ONE-UNION, ONE-COMPANY POLICY

Give a brief description on the one-union, one-company
policy : The proliferation of unions in an ER unit is discouraged as a
matter of policy unless compelling reasons exist which deny a certain
and distinct class of EEs the right to self-organization for purposes of
collective bargaining. (Pagkakaisa ng mga Manggagawa sa triumph vs.
Ferrer-Calleja)
D. RATIONALE
The holing of a certification election is based on a statutory
policy that cannot be circumvented. The workers must be allowed to
freely express their choice in a determination where everything is
open to their sound judgment and the possibility of fraud and
misrepresentation is eliminated. (Progressive development vs. Sec. of
Labor)
Venue of Petition
1. Sec. 1, Rule V, Book V, IRRs : A petition for certification
election may be filed with the Regional Office which has
jurisdiction over the principal office of the ER.
2. Sec. 6, Rule V, Book V, IRRs : Upon receipt of the petition, the
regional director shall assign the case to a Med-Arbiter to
appropriate action. The Med-Arbiter shall have 20-workign days
from submission of the case for resolution within which to
dismiss or grant the petition.

1968
3. In case the place of work of the EEs and the principal office of
the ER are located within the territorial jurisdiction of different
regional offices, may the workers file the application in their
place of work?
Yes. The word jurisdiction as used in the provision refers to
venue, and venue touches more to the convenience of the parties
rather substance of the case. Since the worker is more
economically disadvantaged, the nearest government machinery to
settle a labor dispute must be placed at his immediate disposal.
(Cruzvale vs. Laguesma)
5.3 Certification Election
Union as Initiating Party

A. ORGANIZED ESTABLISHMENT
1. Under what conditions may the Med-Arbiter automatically
order a certification election by secret ballot in an
organized establishment?
a. Petition questioning the majority status of the incumbent
bargaining agent is filed before the DOLE within the 60day freedom period.
b. Such petition is verified.
c. The petition is supported by the written consent of at least
25% of all EEs in the bargaining unit : (Art. 256)
2. In case there are 3 or more unions contending in a certification
election, what will happen if no union receives a majority of the
valid votes cast?
Provided that the total number of votes of all contending unions is
at least 50% of the number of votes cast [that is, the contending
unions got more votes than the vote for no union], a run-off
election will be conducted between the 2 unions with the highest
number of votes. (Alcantara)
3. A certification election was held between 3 contending unions,
A, B and C. Of the 50 eligible voters, only 500 actually cast their
votes. A got 220 votes, B got 242 votes and C got 30 votes,
while the rest of the ballots were considered spoiled. How do you
determine the majority vote in the certification election ?
The majority vote in the certification election is 50% plus 1 of the
valid votes cast. Spoiled ballots are excluded. (Id.)

1968
A.1 Definition
What is an organized establishment? It is a firm or company
where the EE have selected an exclusive bargaining representative or
where there is a CBA duly submitted to the DOLE. (Sec. 6, Rule V, Book
V, IRRs)
Freedom period
1. When may a petition for certification be filed in an
organized establishment? A petition for certification election
may be filed during the last 60 days (freedom period) of the
CBA. Any petition filed before or after the 60-day freedom period
shall be dismissed outright. (Sec. 3, Rule V, Book V, IRRs)
2. Is the freedom period affected by any amendment,
extension or renewal of the CBA? No. The 60-day freedom
period based on the original CBA, shall not be affected by any
amendment, extension or renewal of the CBA for purposes of
certification election. (Sec. 6, Rule V, Book V, IRRs)
3. May a new CBA executed by the incumbent exclusive
bargaining representative and the company, and ratified
during the 60-day freedom period be considered a bar to
the certification election? No. The representation case shall
not be adversely affected by a CBA registered before or during
the last 60 days of a subsisting agreement or during the
pendency of the representation case. (Sec. 4, Rule V, Book V,
IRRs)
A.3 Filing Party

1. Among the legal requirements before a petition for certification
election may be ordered by the Med-Arbiter is that the
petitioning union must be a legitimate labor organization in good
standing. (Lopez Sugar vs. Sec. of Labor)
2. May a federation file such a petition in behalf of its
chapter or local? The mother federation may file a petition for
certification as agent of the local or chapter provided both the
mother federation and the local or chapter is a legitimate labor
organization. (Progressive Development vs. Sec. of Labor)
A.4 Signature verification

It is the Director of Labor Relations, rather than a union that is
required to determine whether there has been compliance with the
requirement that at least 25% of all the EEs in the bargaining
consented in writing to the holding of a certification election. (Todays
Knitting vs. Noriel)

1968
A.5 Substantial Support

1. What percentage of the EEs should support the petition
for certification election in an organized establishment?
The required number is 25% of all the EEs in the bargaining
unit.
2. Is there a need simultaneous submission of the
signatures together with the petition for certification
election? No. The mere filing of a petition for certification
election within the freedom period is sufficient basis for the
issuance of an order for holding of a certification election subject
to the submission of the consent signatures within a reasonable
period of time. (PWUP vs. Laguesma)
3. May a certification election be called by the Med-Arbiter
although the 25% statutory requirement has not been
complied with? Yes. Even conceding that the statutory
requirement of 25% is not strictly complied with, the Med-Arbiter
is still empowered to order that the certification election be held
precisely for the purpose of ascertaining which of the contending
labor organizations shall be the exclusive bargaining agent. The
requirement then is relevant only when it becomes mandatory in
conduct a certification election. (CMC vs. Laguesma) Once the
statutory requirement is met, it is mandatory for the Med-Arbiter
to conduct a certification election. (Belyca vs. Ferrer-Calleja) In all
other instances, however, the discretion ought to be ordinarily
exercised in favor of a petition for a certification election. (CMC
vs. Laguesma)
4. The NFSW filed a petition for certification election. It was
contended however by another union that more than 20% of the
membership of NFSW disaffiliated and thus the union cannot
meet the 25% support requirement. Should the petition be
dismissed?
If there is a y reasonable doubt as to whom the EEs have chosen
as their representative for the purpose of collective bargaining, the
Bureau shall order a certification election by secret ballot. To hold
otherwise would violate the liberal approach constantly followed in
labor litigation. (VICMICO vs. Noriel)
A.6 Motion for Intervention Support

Under the law, the requisite written consent of at least 25% of
the workers in the bargaining unit applies to petition for certification
election only, and not to motions for intervention. (PAFLU vs. FerrerCalleja)
Unorganized Establishments

1968
Art. 257 : 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.
A. FILING PERIOD
When may a petition for certification be filed in an
unorganized establishment? A petition for certification election
may be filed at any time. (Sec. 3, Rule V, Book V, IRRs)
ER as Initiating Party
Art. 258 : When requested to bargain collectively, an ER may
petition the Bureau for an election. If there is no existing CBA in the
unit, the Bureau shall, after hearing, order a certification election. The
certification case shall be decided within 20 working days, and the
certification election shall be conducted within the 20 working days
from the decision.
A. ROLE ER
ER has no role in certification election except when asked to
bargain collectively under the Bystander Rule. (Philippine fruits
and vegetable Industries vs. Torres) It was a well-settled rule that ER
has no standing to question a certification election since it is the sole
concern of the workers. (PTTC vs. Laguesma)
Conducting Agency
1. Art. 226 : The Bureau of Labor Relations and the Labor
Relations Divisions in the regional offices of the DOLE shall have
exclusive and original authority to act, at their own initiative or
upon request of either or both parties, on all inter-union and
intra-union conflicts, and all disputes, grievances or problems
arising from or affecting labor-management relations in all
workplaces whether agricultural or non-agricultural, except
those arising from the implementation or interpretation of CBAs
which shall be subject of grievance procedure and/or voluntary
arbitration.
2. The practice of the Board referring certification cases to the
TUCP, a private entity, is not sanctioned by the Labor Code.
(PLUM vs. Noriel)
Nature of Proceeding

1968
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. (PWUP vs. Laguesma) It is not
litigation in a sense. It is a mere investigation of a non-adversary factfinding character in which the BLR of the DOLE plays the part of a
disinterested investigator seeking merely to ascertain the desires of
the EEs as to the matter of their representative. (Airline Pilots
Association vs. CIR)
Certification Election Process and Procedures

Sec. 1, Rule VI, Book V, IRRs : The Regional Division, shall cause
the necessary posting of offices at least 5 working days before the
actual date of election in 2 most conspicuous places in the company
premises.
A.1 Waiver
The execution of an agreement to waive the mandatory 5 days
posting election notices binds the parties thereto by the doctrine of
estoppel. (JISSCOR vs. Torres)
B. VOTING LIST AND VOTER

B.1 All EEs
1. Only EEs who are directly employed by the ER and working
along the activities to which the ER is engaged and linked by EREE relationship are qualified to participate in the certification
election irrespective of the period of their employment.
(Eastland Manufacturing vs. Noriel)
2. Are EEs prohibited by their religion to be members of a
labor organization be allowed to vote in a certification
election? Yes. The plainly discernible intendment of the law is to
grant the right to vote to all bona fide EEs in the bargaining
unit, whether they are members of a labor organization or not.
(Reyes vs. Trajano)
B.2 Dismissed EEs

EEs who have been improperly laid-off but who have a present,
unabandoned right to the expectation of reemployment, are eligible to
vote in certification elections. (Phil. Fruits and Vegetables Industries vs.
Torres)

1968
B.3 Probationary EEs

Probationary EEs in the appropriate bargaining unit are entitled
to vote. (Airtime Specialists vs. Director of Labor Relations)
C. VOTING DAY
1. Sec. 2, Rule VI, Book V, IRRs : The election shall be set
during the regular business day of the company unless
otherwise agreed upon by the parties.
2. May a party to a certification election contend that the election
was not held on a regular business day due to the occurrence of
a strike that day?
No. While it may have affected the actual performance of work, by
some EEs, it did not necessarily make said date an irregular
business day of the company. (Asian Design vs. Ferrer-Calleja)
D. PROTEST
1. When should a protest be raised?
a. On-the-spot during the conduct of the election.

b. Before the close of proceedings with the representation
officer.
Protests not so raised are deemed waived. Such protest shall be
contained in the minutes if the proceedings. (Sec. 3, Rule VI, Book
V, IRRs)
The protest should be formalized with the Med-Arbiter within 5
days after the close of the election proceedings, otherwise the protest
shall be deemed dropped. (Sec. 4, Rule VI, Book V, IRRs)
E. APPEAL
Art. 259 : Any party to an election may appeal the order or results of
the election as determined by the Med-Arbiter directly to the Sec. of
Labor and Employment on the ground that the rules and regulations
established by the Sec. have been violated.
Such appeal shall be decided within 15 calendar days.
F. ANNULMENT
Circumstances showing irregularities in the holding of the
certification election are sufficient to invalidate the same.
(Confederation of Citizens LaborUnion vs. Noriel)
5.4 Certification of Designated Majority Union

1968
Majority Union
Art. 255 : The labor organization designed or selected by the majority
of the EEs in the appropriate collective bargaining unit shall be the
exclusive representative of the EEs in such unit for the purposes of
collective bargaining.
5.5 Bars to Certification Election
One year Bar Rule (Certification year)
A. GENERAL RULE
Sec. 3, Rule V, Book V, IRRs : No certification election may be held
within 1 year from the date of issuance of a final certification result.
The phrase final certification result means that there was an
actual conduct of election. In case where there was no certification
election conducted precisely because the first petition was dismissed,
on the ground of a defective petition, the certification year bar does
not apply. (R. Transport vs. Laguesma)
B. EXCEPTIONS
A petition for certification election may be entertained where
unusual circumstances exist. A circumstance would be unusual or out
of the ordinary if it affects the structure, functions or membership of
the contracting union i.e. the number of EEs in the appropriate
bargaining unit has more than doubled since the last certification
election. (Azucena)
Deadlock Bar Rule

What is the deadlock bar rule? A petition for certification
election can only be entertained if there is no pending bargaining
deadlock submitted to conciliation or arbitration of which has become
the subject of a valid notice of strike or lockout. (NASUCIP-TUCP vs.
Trajano)
A. NO DEADLOCK
Bargaining deadlock presupposes reasonable effort at good faith
bargaining which, despite noble intentions, does not conclude in
agreement between the parties. (Divine World vs. Sec. of Labor)

1968
Contract Bar Rule

1. What is the contract bar rule? The existence of a CBA duly
filed and submitted to the DOLE, in compliance with the
requirements and standards of the said office bars a certification
election in the collective bargaining unit except within the 60
days prior to the expiration of the life of such contract. (Foamtex
Labor Union vs. Director of Labor Relations)
2. Give the statutory recognition of the contract bar rule :
The Bureau shall not entertain any petition for certification
election which may disturb the administration of duly registered
existing CBAs affecting the parties. (Art. 232)
3. The exclusive bargaining union entered into a 5-year CBA with
the company. Because of intra-union conflict the ratified CBA
was only registered with the DOLE 3 months after it was ratified.
A month later, another union filed a petition for certification
election. The petitioning union contends that the contract was
registered beyond the 30-day period prescribed by Art. 231. Is
the petition barred by the contract bar rule?
Yes. Non-compliance with the procedural requirements of Art. 231
should not adversely affect the substantive validity of the CBA. A
CBA is more than a contract. It is highly impressed with public
interest for it is an essential instrument to promote industrial
peace. To set it aside o technical grounds is not conducive to the
public good. (TUCP vs. Laguesma)
4. Company A signed a 3-year CBA with Union X, the duly
authorized bargaining representative. The CBA was never
formally ratified by the EEs, although they all accepted and
enjoyed the benefits under the CBA. 18 months after the CBA
was signed, Union Y filed a petition for certification election. Will
the petition of Union Y prosper?
No. While there was no express ratification by the EEs, the fact that
they received the benefits is an implied ratification of the CBA. The
non-submission of a copy of the CBA to the DOLE is a mere formal
requirement which should not prevent the application of the
contract bar rule. (Alcantara)
A. DEFECTIVE CBA
The contract bar rule does not apply when the CBA which is the
basis of the rule is defective. (ALU vs. Ferrer-Calleja)
B. INCOMPLETE CONTRACT

1968
To be a bar to a certification election, the CBA must be adequate

in that it comprises substantial terms and conditions of employment.
(Buklod ng Saulog vs. Casalia)
C. HASTILY CONCLUDED CBA

1. 8 months prior to the expiration of the CBA, the company and
the union renewed the same for another 3 years. Can the
renewed CBA be set up as a bar to the holding of the
certification election?
If the CBA is prematurely renewed, such is not a bar to the holding
of a certification election. The ER and a friendly union can not by
the mere expedient of prematurely renewing their CBA, effectively
deprive the workers of their right to freely select their bargaining
agent. (General Textiles Allied Workers Association vs. Director of
Labor Relations)
2. ALU had a CBA with PASAR. Several days before the expiration of
the CBA NAFLU filed a petition for certification election. During
the pendency of the representation case, the Med-Arbiter
enjoined PASAR from entering into a CBA with any union.
However, ALU and PASAR concluded a CBA. Is the new CBA a bar
to certification election?
No. The CBA was hastily concluded, showing that the parties were
in bad faith when they concluded the CBA. (ALU vs. Ferrer-Calleja)
D. CBA THAT DOES NOT FOSTER STABILITY

More than half of the members of a union resigned from it to
form another union. It later filed a petition for certification election
within the 60-day freedom period. Meanwhile the old union and the
company entered into a new CBA. Is the contract bar rule applicable?
No. It is doubtful if any contract that may have been entered
into between ALU and the company will foster stability in the
bargaining unit in view of the substantial number of EEs that have
resigned from the old union and joined the new union. (Firestone vs.
Estrella)
E. EXCEPTION
Deviation from the contract bar rule is justified only where the
need for industrial stability is clearly shown to be the imperative.
(PWUP vs. Laguesma)

1968
F. VALIDITY OF CBA SIGNED DURING REPRESENTATIONS

DISPUTE
When a CBA is entered into at the time when a petition for certification
election had already been filed by a union and was then pending
resolution, the said CBA cannot be deemed permanent, precluding the
commencement of negotiations by another union with management.
(ATU vs. Trajano)
5.6 Suspension of Certification Election
Prejudicial Question Rule

1. United CMC Textile Workers filed a complaint for unfair labor
practice against CENTEX and PAFLU, alleging the CENTEX helped
and cooperated in the organization of PAFLU. During the
pendency of the case, PAFLU filed a petition for certification
election. May the certification election be suspended pending
the determination of the case?
Yes. Pendency of a formal charge of company domination is a
prejudicial question that bars proceedings for certification election.
(United CMC Textile Workers vs. BLR)
2. Who can file and maintain an opposition to the holding of
the certification election based on a charge of company
domination? Only the union who made the charge since it is
the entity that stands to lose and suffer prejudice by the
certification election. (Id.)
What if there is a pending unfair labor practice charge by
the ER against the union. Can this stay the certification
election? No. (Barrera vs. CIR)
3. What kind of charge of company domination will not
suspend the certification proceedings? A charge that is
flimsy, made in bad faith or filed purposely to forestall the
certification election. (Id.)
5.7 Effect of Pending Petition for Cancellation of Trade Union
registration
An order to hold a certification election is proper despite the pendency
for cancellation of the registration certificate of union which is a party
to the representation dispute. The rationale for this is that all the time
the respondent union filed its petition, it still had the legal personality
to perform such act absent an order directing a cancellation.
(Association of CA EEs vs. Ferrer-Calleja)

1968
Section 6. Collective Bargaining, Process, Procedures and

Issues
6.1 General Concepts
1. What is collective bargaining? Collective bargaining has been
defined as the process of negotiation between an ER or ERs and
the EEs organization or union to reach an agreement on the
terms and conditions of employment for a specified period. It
covers the entire range of organized relationships between ERs
and EEs represented by union, this includes the negotiation,
administration, interpretation or application of the labor
contract. (Alcantara)
2. What are the most important aims or aspects of collective
bargaining?
The most important aims are :
a. To establish industrial peace by enabling capital and labor
to resolve their disputes and controversies on terms
mutually acceptable and satisfactory to themselves.
b. To enhance industrial efficiency through speedy resolution
of labor disputes concerning fixing of wages, working
hours and other terms and conditions of contracts
incorporating such agreements, and the adjustment or
settlement of any grievance arising thereunder.
c. To establish benefits of labor higher or greater than those
fixed by law. The various aspects are :
d. The duty of the parties to bargain and negotiate on
proposals concerning wages, working hours and other
terms and conditions of employment.
e. The duty of the parties to adhere to statutory standards of
good faith, promptness and expeditious actions.
f. The duty to refrain from unilateral changes concerning
matters subject to bargaining.
g. In case there is an existing CBA, the duty to adhere
faithfully to its terms and not terminate or modify the
same during its period of effectivity. (Alcantara)
3. What is the nature and purpose of collective bargaining?
Collective bargaining is a democratic framework to stabilize the
relation between labor and management to create a climate of
sound and stable industrial peace. It is a mutual responsibility of
the ER and the union and is their legal obligation. (loy vs. NLRC)

1968
4. What are the jurisdictional preconditions of collective

bargaining?
The mechanics of collective bargaining is set in motion only when
the following jurisdictional preconditions are present :
a. Possession of the status of majority representation of the
EEs representative in accordance with any of the means
of selection or designation provided by the Labor Code.
b. Proof of majority representation.
c. Demand to bargain under Art. 250. (Id.)
6.2 Bargainable Issues
Obligation to Negotiate Mandatory Bargaining

Subjects
1. It is the obligation of the ER and the EEs representative
to bargain with each other with respect to wages hours
and other terms and conditions of employment. They are
statutory of mandatory proposals requiring the party to whom
they are made to bargain in good faith concerning them.
(Azucena) However, the law does not compel agreements
between ERs and EEs and neither party is obligated to yield
even on a mandatory bargaining subject, for as long as they
bargain in good faith. (Id.)
2. What are considered mandatory subjects of bargaining?
a. Wages and other types of compensation
b. Working hours
c. Vacations and holidays
d. Bonuses
e. Pensions and retirement plans
f. Seniority
g. Transfer
h. Lay-off
i. EEs workloads
j. Work rules and regulations
k. Rent company houses
l. Union security arrangements (Azucena)
m.No-Lockout Clause
n. Clause fixing contractual term.
Non-Mandatory Subjects
1. The right to bargain on a non-mandatory subject does not
include to right to insist on the inclusions of the non-mandatory
subject in the CBA as a condition to any agreement. (Azucena)

1968
2. Give
a.
b.
c.
some examples of non-mandatory subjects :

Management prerogative clauses.
Union discipline clause.
Arbitration, strike vote or no-strike clauses.
6.3 Bargaining Procedure
Private Procedure
Art. 251 : In the absence of the CBA, it shall be the duty of the ER and
the representatives of the EEs to bargain collectively.
Code Procedure
Describe the procedure in collective bargaining : In the absence
of an agreement or other voluntary arrangement providing for a more
expeditious manner of collective bargaining, the following procedures
shall be observed :
1. When a party desires to negotiate an agreement, it shall serve a
written notice upon the other with a statement of its proposals.
The other party shall make a reply thereto not later than 10
calendar days from the receipt of such notice.
2. Should difference arise on the basis of such notice and reply,
either party may request a conference which shall begin not
later than 10 calendar days from date of request.
3. If the dispute is not settled, the Board shall intervene upon
request of either or both parties to conciliation meetings. The
Board shall have the power to issue subpoenas requiring the
attendance of the parties to such meetings. It shall be the duty
of the parties to participate fully and promptly in the conciliation
meetings the Board may call.
4. During the conclusion proceedings in the Board, the parties are
prohibited from doing any act which may disrupt or impede the
early settlement of the dispute.
5. The Board shall exert efforts to settle disputes amicably and
encourage the parties to submit their case to voluntary
arbitration. (Art. 250)
6. The parties shall at the request of either of them, make available
such up-to-date financial information on the economic situation
of the undertaking, as is material and necessary for meaningful
negotiations. Where the disclosure of some of the information
could be prejudicial to the undertaking, its communication may
be made condition upon a commitment that it would be

1968
regarded as confidential to the extent required. (Sec. 5, Rule XIII,

Book V, IRRs)
7. Information and statements made at conciliation proceedings
shall be treated as privilege communication and shall not be
used as evidence in the Commission. Conciliators and similar
officials shall not testify in any court or body regarding any
matters taken up at conciliation proceedings conducted by them.
(Art. 233)
8. The agreement negotiated by the EEs bargaining agent should
not be ratified or approved by the majority of all the workers in
the bargaining unit. (Art. 231) [Ratification in not needed when
the CBA is a product of an arbitral award. The arbitral award
may result from voluntary arbitration or from the secretarys
assumption of jurisdiction or certification of the dispute to the
NLRC. (Azucena)]
A. NATURE OF PROCEDURE
Collective bargaining does not end with the execution of an
agreement. It is a continuous process. The duty to bargain imposes on
the parties during the term of their agreement the mutual obligation
to meet and confer promptly and expeditiously and in good faith for
the purpose of adjusting any grievances or question arising under
such agreement. (RSB vs. CIR)
Duty to Bargain
Explain the meaning of the duty to bargain effectively :
The duty to bargain collectively means the performance of a mutual
obligation to meet and confer promptly and expeditiously and 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 grievances or questions
arising under such agreement and executing a contract incorporating
such agreement if requested by either party, but such duty does not
compel any party to agree to a proposal or to make any concession.
(Art. 252) In case there is an existing collective contract, the duty shall
include the obligation to adhere faithfully to its terms and not
terminate or modify the same during its period of effectivity. (Art. 253)
6.4 The CBA
What is the CBA? It is a negotiated contract between a
legitimate labor organization and the ER concerning wages, hours of
work and all other terms and conditions of employment in a
bargaining unit, including mandatory provisions for grievances and
arbitration machineries. (Sec. 1, Rule VI, Book V, IRRs)

1968
Registration - Period, Requirements and Actions

Art. 231 : Within 30 days from the execution of a CBA the
parties shall submit copies of the same directly to the Bureau of
Regional Office of the DOLE for registration accompanied with verified
proofs of its posting in 2 conspicuous places in the place of work and
ratification by the majority of all the workers in the bargaining unit.
The Bureau of Regional Offices shall act upon the application for
registration of such CBA within 5 calendar days from the receipt
thereof. The Regional office shall furnish the Bureau with a copy of the
CBA within 5 days from its submission. The Bureau shall maintain a file
of all CBAs and other related agreements and records of settlements
of labor disputes and copies of orders, decisions of voluntary
arbitrators. The file shall be open and accessible to interested parties
under conditions prescribed by the Sec. of Labor and Employment.
Contract Beneficiaries
1. When a CBA is entered into by the union representing the EEs
and the ER, even the non-member EEs are entitled to the
benefits of the contract. (Rivera vs. SMC)
2. A CBA provides for the deduction of union dues from nonmember of the bargaining union. Is the stipulation valid?
Yes. It provides for the collection of an agency fee from the
members who accept and enjoy the benefits attained through
the efforts of the bargaining agent. The non-union members
should not be unjustly enriched at the expense of the bargaining
agent. (Alcantara)
3. How about if the stipulation was not provided for in the
CBA but was merely requested by the bargaining union
from the ER? The stipulation is still valid. EEs of an appropriate
collective bargaining unit who are not members of the
recognized collective agent may be assessed a reasonable fee
equivalent to the dues and other fees paid by members of the
recognized collective bargaining agent, if such union members
accept the benefits under the CBA. The individual authorization
required under Art. 241 shall not apply to the non-members
recognized collective bargaining agent. (Art. 248) The law does
not impose as a condition for the collection of the agency fee
that the same be provided in the CBA, the basis of the unions
right to the agency fee is quasi-contractual, not contractual.
(Alcantara)
4. The CBA negotiated by union Y provides for wages to EEs in the
production
and
maintenance
department.
To
avoid
discrimination, the company also granted the increases to EEs
in the administrative and sales department. Union Y now
demands an agency fee from the EEs of these departments. Is
such demand valid?

1968
No. In the 1st place, the EEs in the latter 2 departments do not
belong to the bargaining unit covered by the agreement. In the 2 nd
place, the wage increases were not obtained through the efforts of
union Y. (Id.)
Contract Administration and Enforcement

A. NATURE OF CONFLICT
1. While the terms and conditions of a CBA constitute the law
between the parties, it is not, however, an ordinary contract to
which is applied the principles of law governing ordinary
contracts. A CBA, as a labor contract within the contemplation of
Art. 1700, NCC which governs the relations between labor and
capital, is not merely contractual in nature but impressed with
public interest, thus it must yield to the common good. As such,
it must be construed liberally rather than narrowly and
technically, and the courts must place a practical and realistic
construction upon it, giving due consideration to the context in
which it is negotiated and the purpose which it is intended to
serve. (Davao Integrated vs. Abarquez) However, like ordinary
contracts, ignorance of its terms by either party, including the
EEs who are principals of the bargaining union, will not justify
the breach of the contract. (Manalang vs. Artex)
2. The CBA was not formally ratified by the majority of the workers
in the bargaining unit. However, the workers received and
enjoyed the benefits under the CBA. Can the EEs later on have
the contract invalidated for lack of formal ratification?
No. The EEs have already enjoyed benefits from it. They cannot
receive benefits under provisions favorable to them and later insist
that the CBA is void simply because other provisions turn out not to
the liking of certain EEs. (Planters Product vs. NLRC)
3. Are wage increases paid by the ER pursuant to laws and
wage orders compliance with the wage increases
provided for under a CBA?
No. In the absence of a provision of law or the CBA to the effect
that benefits provided by the former encompass those provided by
the latter, benefits derived from either law or a contract should be
treated as separate from each other. A CBA is a contractual
obligation imposed by law. EE benefits derived from law are
exclusive of benefits arrived through negotiation and agreement
unless otherwise provided by the agreement itself or by law.
(Meycauayan College vs. Drilon)
B. GRIEVANCE PROCEDURE DISPUTE SETTLEMENT: ISSUES
AND INDIVIDUAL GRIEVANCE

1968
1. Art. 260 : The parties to the CBA shall include therein provisions
that will ensure the mutual observance of its terms and
conditions. They shall establish machinery for the adjustment
and resolution of grievances arising from the interpretation of
their CBA and those arising from the interpretation or
enforcement of company personnel police.
All grievances submitted to the grievance machinery
which are not settled within 7 calendar days from its date of
submission shall automatically be referred to voluntary
arbitration prescribed in the CBA.
2. Art. 225 : However, an individual EE or group of EEs shall have
the right at any time to present grievances to their ER.
3. J, a member of a union has been certified as the sole and
exclusive bargaining representative of the EEs, sends a letter to
management requesting, in view of inflation, for an increase in
his wages. Is this allowed?
Yes. Although there may be an exclusive bargaining agent, an
individual EE or group of EEs have the right to present grievances
to their ER. It would have been different if J demanded for wage
increases for the other EEs. (Alcantara)
C. CONTRACT DURATION AND RENEWALS

1. Art. 253-A :
a. Any CBA that the parties may enter into shall, insofar as
the representation aspect is concerned; be for a term of 5
years. No petition questioning the majority status of the
incumbent bargaining agent shall be entertained and no
certification election shall be conducted by the DOLE
outside of the 60-day period immediately before the expiry
date of the CBA.
b. All other provisions of the CBA shall be renegotiated 3
years after its execution.
c. Any agreement on such other provisions of the CBA
entered into within 6 months from the date of expiry of the
term of such other provisions in the CBA, shall retroact to
the day immediately following such date.
If any such agreement is entered into beyond 6 months, the
parties shall agree on the duration of retroactivity thereof.
2. Contract continue to have legal effects even after its expiry date,
until a new CBA is renegotiated and extended into. (Lopez Sugar
Corporation vs. FFW)

1968
4. Union A and Co. B concluded a CBA with a duration of 3 years. Upon

the expiration of the 3-year period, Co. B discontinued to benefits
under the CBA. Is this legal?
No. Art. 253 requires the parties to keep the status quo and
discontinue in full force, and effect until a new agreement is
reached. (Alcantara)
D. CBA AND 3RD PARTY APPLICABILITY
Unless expressly assumed, labor contracts such as employment
contracts and CBAs are not enforceable against a transferee of an
enterprise, labor contracts being in personam, thus binding only
between parties. As a general rule, there is no law requiring a bona
fide purchaser of assets of an ongoing concern to absorb in its employ
the EEs of the latter. However, although the purchaser of the assets
or enterprise is not legally bound to absorb in its employ the EEs of
the seller of such assets or enterprise the parties are liable to the EEs
if the colored or clothed with bad faith. (ALU vs. NLRC)
E. CBA AND THE SEC. OF LABOR AND EMPLOYMENT

May the parties be required by the Sec. of Labor and
Employment to execute a CBA embodying terms and conditions
that the latter may determine? Yes. This is pursuant to the power
of compulsory arbitration vested in the Secretary. (Art. 263)
Section 7. Unfair Labor Practice

7.1 Introductory Concepts
Give the concept of unfair labor practice under the Labor
Code :
Unfair labor practices
1. Violate the constitutional right of workers and EEs to Selforganization
2. Are inimical to the legitimate interests of both labor and
management, including their right to bargain collectively and
otherwise deal with each other in an atmosphere of freedom and
mutual respect.
3. Disrupt industrial peace.
4. Hinder the promotion of healthy and stable labor management
relations. (HIDS)
7.2 Requisite Relationship

1968
Conditions precedent to an Unfair Labor Practice

What are the conditions precedent to an unfair labor
practice charge?
1. The injured party comes within the definition of EE as that
term is defined by the Code.
2. The act charged as unfair labor practice must fall under Art. 248
or 249.
7.3 No Unfair Labor Practice : Illustrative Instances of Valid
Exercise of Management Rights
Personnel Movements
1. As a rule, it is the prerogative of the company to promote,
transfer or even demote its EEs to the other positions when the
interests of the company reasonably demand it. Unless there are
instances which directly points to interference by the company
with the EEs rights to self-organization, the transfer of an EE
should be considered as within the bounds allowed by law.
(Rubberworld vs. NLRC)
2. 9 teachers were hired by a school on a yearly basis. The nine are
members of a union. After their 2nd yearly contract, the school
refused to renew their contract on the ground that their teaching
performances were not satisfactory. Is the refusal unfair labor
practice?
No. The refusal was not by reason of their union membership but
by reason of their poor teaching performances. (Bilboso vs. Victorias
Mining)
Grant of Profit-Sharing Benefits to Non-Union

Members
It is the prerogative of management to regulate, according to its
discretion and judgment, all aspects of employment. Such
management prerogative may be availed of without fear of any
liability so long as it is exercised in good faith for the advancement of
the ERs interest and not for the purpose of defeating or circumventing
the rights of EEs under special laws or valid agreement and are not
exercised in a malicious, harsh oppressive, vindictive or wanton
manner or out of malice or spite. (Wise vs. Wise EEs Union)
Forced Vacation Leave

1968
The forced vacation leave without pay in view of the economic

crisis, being neither malicious, oppressive or vindictive, does not
constitute unfair labor practice. (Philippine Graphic vs. NLRC)
Issuance of Rules or Policy

Every business enterprise endeavors to increase its profits. In
the process, it may adopt or devise means designed towards that goal.
(SMC vs. Ople)
Taking Action Against Slowdown

EEs have the right to strike, but they have no right to continue
working while rejecting the standards desired by their ER. Hence, the
ER does not commit as unfair labor practice by discharging EEs who
engaged in slowdown, even if their object is a pay increase and
therefore is lawful. (Azucena)
EE Discipline
The dismissal of a union member because of threats made
against the life of the ER and there being evidence that more active
members of the union were retained is not an unfair labor practice.
(PTUC vs. CIR)
Closed Shop Agreements

Dismissal of an EE upon demand of a union pursuant to a closed
shop agreement is not an unfair labor practice. (Lirag Textile vs.
Blanco)
7.4 Unfair Labor Practice of ERs
Restraint, Interference or Coercion

Art. 248 : It shall be unlawful for the ER to interfere with,
restrain or coerce EEs in the exercise of their right to self-organization.
1. Although experience has shown that certain forms of conduct,
however disguised, either directly or indirectly result in actual
interference with or intimidation of EEs in exercising their rights,
to distinguish between culpable interference from an innocent
and non-interfering course of conduct is often difficult.
Interference with EE organizational rights was found where the
superintendent of the ER threatened the EEs with cutting their
pay; increasing rent of the company houses, or closing the plant

1968
if they supported the union and where the ER encouraged the

EEs to sign a petition repudiating the union. (Azucena)
A. INTERROGATION
In order that questioning of an EE concerning his union activities
would not be deemed coercive, the ER must communicate to the EE
the purpose of the questioning, assure him that no reprisal would take
place, and obtain his participation on a voluntary basis. In addition,
questioning must also occur in a context free from ER hostility to union
organization and must not itself be coercive in nature. (Id.)
B. PROHIBITING AND INTERFERING IN ORGANIZING

ACTIVITIES
Give instances of unfair labor practice in the form of prohibitions
against union organizing activities :
1. Rule prohibiting solicitation of union membership in company

property during non-working and working time. (Id.) But if the
prohibition is merely during working hours, this is not unfair
labor practice since the ER has the prerogative of promulgating
rules and enhance production within its premises during working
hours. (Alcantara)
2. Dismissal of union members upon their refusal to give up their
membership, under pretext of retrenchment due to reduced
dollar allocations. (Manila Pencil Co. vs. CIR)
3. Refusal over period of years to give salary adjustments
according to improved salary scales in the CBAs. (Benguet
Consolidated vs. BCI EEs Union)
4. Dismissal of an old EE allegedly for inefficiency, on account of
her having joined a union and engaging in union activities. (East
Asiatic vs. CIR)
5. Issuance of suspension and termination orders for EEs
participating in a verification election. (Gochangco Workers Union
vs. NLRC)
6. Dismissal of EEs who refused to resign from their union and to
affiliate with another one which was formed at the instance of
the ER. (Progressive Development vs. CIR)
7. C, the duly elected president of the union, was dismissed by the
company for allegedly threatening the lives of 4 EEs. It was
however established that he was very active in union affairs and
that he was dismissed a day after his union sent collective
bargaining proposals to the company; and that C, had no reason
to threaten the 4 EEs. (Royal Undergarment vs. CIR)

1968
8. Refusal to renew teaching contracts of teachers because of fear

of the school that there will be a strike the succeeding semester.
(Rizal-Memorial Colleges Union vs. NLRC)
C. VIOLENCE OR INTIMIDATION
Violation must have been found where the ER threatened EEs
favoring the union with force or violence. (Azucena) In another case,
the ER was found guilty of unfair labor practice when 2 EEs were
provoked into a fight by 2 recently hired EEs pursuant to a strategy of
the company designed to provide an apparent lawful cause for their
dismissal and said dismissed EEs had not figured in similar incidents
before or violated companys rules in their many years with the
company. (Visayan Bicycle vs. NLU)
D. ESPIONAGE AND SURVEILLANCE

One form of pressure which some over-eager ERs sometimes
use is the practice of spying upon EEs. Inasmuch as the pressure
results more from the EEs apprehension than from the ERs purpose in
spying, and the use of its results, it has been held to be no answer to a
charge of unfair labor practice that the fruits of espionage were not
used. When an ER engages in surveillance or takes steps leading his
EEs to believe it is going on, a violation results because the EEs come
under threat of economic coercion or retaliation for their union
activities. (Azucena)
E. ECONOMIC INDUCEMENTS
1. A violation results from an ERs announcements of benefits prior
to a representation election, where it is intended to induce the
EEs to vote against the union. (Id.)
2. While a strike is going on, the president of the company sent
each worker a letter stating among others that if the latter
returned to work, he can have his meals within the office, make
a choice whether to go home at the end of the day or to sleep
nights at the office, enjoy free coffee and occasional movies. Is
the writing of the letter unfair labor practice?
Yes. The letter tends to undermine the concerted activity of the
EEs, an activity which they are entitled free from the ERs
molestation. (Insular Life EEs Association vs. Insular Life)
F. EXPRESSION OF ANTI-UNION OPINION

If the ER evinced willingness to be guided by and to accept the
EEs choice, criticism or depreciating remarks made by the ER
concerning a particular labor union or labor unions generally did not

1968
constitute an unfair labor practice, provided, of course, the remarks

were not so hostile as to evidence or produce a coercive or
intimidating purpose or effect. (Azucena)
F.1 Totality of Conduct Doctrine

The culpability of ERs remarks were to be evaluated not only on
the basis of their implicit implications, but were the be appraised
against the background for and in conjunction with the collateral
circumstances i.e. history of particular ERs labor relations or antiunion bias or because of their connection with an established
collateral plan of coercion or interference. (Id.)
G. MASS LAY-OFF
1. A companys capital reduction efforts, a subterfuge, a deception,
to camouflage the fact that it has been making profits and to
justify mass lay-off of its EE ranks, especially of union members,
were an unfair labor practice. (Madrigal and Company vs. Zamora)
2. There is unfair labor practice in the lay-off of a bank of 65 EEs
who were active union members allegedly by reason of
retrenchment, although the bank was not suffering any losses.
(Peoples Bank vs. Peoples Bank EEs Union)
G. LOCKOUTS, CLOSURE
1. A lockout, actual or threatened, as a means of dissuading the
EEs from exercising their rights clearly an unfair labor practice.
(Azucena)
2. An ER which closes its business to put an end to a unions
activities and which made no effort to allow the EEs attempt to
exercise their right to self-organization and collective bargaining
commits unfair labor practice. (Sy Chi Junk Shop vs. Federacion
Obrero de la Industria)
3. Where there is a simulated sale as a device to merely get rid of
the EEs who were members of the union, the company is guilty
of unfair labor practice. (Moncada Bijon Factory vs. CIR) The
acquiring company created to relieve the old company of its
obligations is liable for the old companys obligations. (PLASLU
vs. Sy Indong) The doctrine of piercing the veil of corporate
identity will be utilized, to the effect, that the separateness of
corporate personality will be disregarded if it is being used to
run away from corporate obligations. (Delfin vs. Inciong)

1968
H. RUN-AWAY SHOP
The transfer of an industrial plant from one location to another
in order to discriminate against EEs at the old plant because of their
union activities. (Azucena)
I. REFUSAL TO HIRE STRIKING WORKERS

There is unfair labor practice in the refusal of ER to reinstate
strikers who abandoned their strike and who voluntarily and
unconditionally offered to return to work. (Cromwell vs. CIR)
Yellow Dog Contract

1. Art. 248 : It shall be unlawful for the ER to require as a
condition of employment that a person or an EE shall not join a
labor organization or shall withdraw from one to which he
belongs.
2. What is a yellow dog contract? It is a promise exacted from
workers a condition of employment that they do not belong to,
or attempt to foster, a union during their period of employment.
The typical yellow dog contract contains a representation by the
EE that he is not a member of a labor union and a promise by
him not to join a labor union or upon joining a union to quit his
employment. (Alcantara)
3. X, a member of a union, applied for employment with Y Co. The
union is not among the unions in the bargaining unit. He was
told by the personnel manager that he cannot be employed
unless he resigned from his union. X refuses to do so. He was not
hired. Is this unfair labor practice?
Yes. This is an example of an exaction of a yellow dog contract. The
defense that X is not yet an EE of Y is not tenable since the unfair
labor practice covered by a yellow dog contract may be
committed against a prospective EE. (Alcantara)
Contracting Work Out

1. Art. 248 : It shall be unlawful for an ER to contract out services
or functions being performed by union members when such will
interfere with, restrain or coerce EEs in the exercise of their
rights to self-organization.
2. Shell dissolved its security guard section, transferred 18 guards
to other departments and eventually dismissed them, then
contracted out to an independent security agency. Such section
was among the departments covered by the existing CBA. In the
absence of an express reservation in the CBA of Shells right to
abolish the section, did the ER commit unfair labor practice?

1968
Yes. The dissolution of a section is a violation of the CBA, the terms

of which cannot be unilaterally disregarded by either party. Shell
should have specifically reserved its right to dissolve the section; a
statement of management prerogatives couched in general terms
is not sufficient. (Shell Oil vs. Shell)
Company Dominated Union

1. Art. 248 : It shall be unlawful for an ER to initiate, dominate,
assist or otherwise interfere with the formation or administration
of any labor organization, including the giving of financial aid or
other support to it or its organizers or supporters.
2. What are the various manifestations of domination of
labor union?
a. Initiation of the company union idea.
b. Financial support to the union.
c. ER encouragement and assistance i.e. immediately
granting the union exclusive recognition as a bargaining
agent without determining majority representation.
d. Supervisory assistance i.e. solicitation of membership.
(Philippine American Cigarette Factory Union vs. Philippine
American Cigarette Factory)
Discrimination
1. Art. 248 : It shall be unlawful for an EE to discriminate in regard
to wages, hours of work, and other terms and conditions of
employment in order to encourage or discourage membership in
any labor organization. [Discouraging membership in a labor
organization includes not only discouraging adhesion to union
membership but also discouraging participation in union
activities such as a legitimate strike. (Azucena)]
2. Give some examples of discrimination resulting in unfair
labor practices :
a. Discrimination in work quota between members and nonmembers of union. (AHS/Philippines EEs Union vs. NLRC)
b. Discrimination in dissemination of bonus allocation of
salary adjustments between members and non-members
of union contrary to previous practice of dividing equally
the percentage of net profits. (Manila Hotel vs. CIR)
c. Even where business conditions justified a lay-off of EEs,
unfair labor practices in the form of discriminatory
dismissal were found where only unionists were
permanently dismissed while non-unionists were not.
(Manila Pencil vs. CIR)
d. Discrimination in regularization between old EEs who were
members of union and new EEs who were non-members.
The new EEs were immediately given permanent

1968
appointments after their hiring. (Manila Railroad vs.

Kapisanan ng mga Manggagawa sa Manila Railroad)
e. Indirect discrimination i.e. the discharge of an EE due to
the union activities of wife, brother or husband. (Azucena)
3. What is the test of discrimination to be considered unfair
labor practice? It is necessary that the underlying reason for
the discharge be established. The fact that a lawful cause for
discharge is available is not a defense where the EE is actually
discharge because of his union activities. If the discharge is
actually motivated by a lawful reason, the fact that the EE is
engaged in union activities at the time will not lie against the
ER and prevent him from the exercise of his business judgment
to discharge an EE for cause. (Id.)
4. A company considers one factor for promotion the fact that an
EE is Ilocano. Assuming this is discriminatory, is this unfair labor
practice?
No. Only such act as would interfere with the EEs right to selforganization, encourage or discourage membership in a labor
organization, or discriminate against an EE of having given or being
about to give testimony under the Code are considered unfair labor
practices. The said provisions, being penal in character, should be
strictly construed. (Alcantara)
Violation of Duty to Bargain

1. Art. 248 : It shall be unlawful for an ER to violate the duty to
bargain collectively as prescribed by this Code.
2. While the law does not compel the parties to reach an
agreement, it does contemplate that both parties will approach
the negotiation with an open mind and make reasonable effort
to reach a common ground of agreement. (Kiok Loy vs. NLRC)
3. ALU was certified as the bargaining agent of Balmar Farms.
Balmar subsequently received a letter by the president of the
union of its workers that they wanted to negotiate directly with
the company and not through ALU. Because of this, Balmar
refused to negotiate with ALU. Is this unfair labor practice?
Yes. ALYU has been certified as the exclusive bargaining agent, and
it is not for Balmar to question which group in the bargaining
representative of its workers. (Balmar farms vs. NLRC)
Testimony of EE
Art. 248 : It shall be unlawful for an ER to dismiss , discharge or
otherwise prejudice or discriminate against an EE for having given or
being about to give testimony under this Code.

1968
Negotiation or Attorneys Fees

Art. 248 : It shall be unlawful for an ER to pay negotiation of
attorneys fees to the union or its officers or agents as part of the
settlement of any issue in collective bargaining or any other dispute.
Violation of CBA
1. Art. 248 : It shall be unlawful for an EE to violate a CBA.
2. Art. 261 : Violations of a CBA, except those which are gross in
character, shall no longer be treated an unfair labor practice and
shall be resolved as grievances under the CBA.
7.5 Unfair Labor Practice of Labor Organizations
Restraint or Coercion by Labor Organization

organization to restrain or coerce EEs in the exercise of their
right to self-organization.
2. The provision is violated by a unions restraining or coercing an
EE in the exercise of his right to refuse to participate or
recognize a strike i.e. blocks their ingress and egress from the
plant or damages their automobiles. (Azucena)
Discrimination
organization to cause or attempt to cause an ER to discriminate
against an EE, including discrimination against an EE with
respect to who, membership in such organization has been
denied or to terminate an EE on any ground other than the usual
terms and conditions under which membership is made available
to other members.
2. The union may not arbitrarily use the union security clause to
unjustly discriminate against non-members of the union.
(Salunga vs. CIR)
3. Due to negligence of a mother federation in attending to a case
filed by its local against the ER, 32 out of the 36 members of the
local union signed a resolution of disaffiliation from the mother
federation. The federation demanded dismissal of the union
members pursuant to the maintenance of membership clause in
the CBA. Thereafter, the union members were dismissed. Is there
unfair labor practice?
Yes. The union members were dismissed by reason of their freedom
to disaffiliate. (Liberty Cotton Mills Workers Union vs. Liberty Cotton
Mills)

1968
4. What is the liability of the ER and the mother federation?

The companys liability should be limited to reinstatement
considering that the dispute revolve around the mother
federation and its local. The mother federation at whose
instance the workers were dismissed, should be held liable for
payment of backwages. (Id.)
Refusal to Bargain
Art. 249 : It shall be unfair labor practice for a labor organization to
violate the duty, or refuse to bargain collectively with the ER, provided
it is the representative of the EEs.
Featherbedding and Make-Work Arrangements

organization to cause or attempt to cause an ER to deliver or
agree to pay or deliver any money or other things of value, in
the nature of an exaction, for services which are not performed
or not to be performed including the demand for free for union
negotiations.
2. Define featherbedding : Name given to EE practices which
create or spread employment by unnecessarily maintaining or
increasing the number of EEs used, or the amount of time
consumed to work on a particular job. (Azucena)
3. A union in a company declares a strike to compel the ER to
assign 2 checkers to 1 container. If it can be established that
only 1 checker is needed for a container, has the union
committed in unfair labor practice?
Yes. The union is guilty of featherbedding.
Negotiation Fees
Art. 249 : It shall be unfair labor practice for a labor organization to
ask for or accept negotiations or attorneys fees from the ERs as part
of the settlement of any issue in collective bargaining or any other
dispute.
Violation of CBA
organization to violate a CBA.
2. Art. 261 : Violations of a CBA, except those which are gross in
character, shall no longer be treated as unfair labor practice and

1968
shall be resolved as grievances under the CBA. {Gross

Violations of a CBA] Flagrant and/or malicious refusal to
comply with the economic provisions of such agreement.
(Alcantara)
7.6 Enforcement, Remedies and Sanctions
Parties Liable for Acts

1. Who may commit an unfair labor practice? The ER or a
labor organization may commit unfair labor practices. (Id.)
2. In case the ER committing the unfair labor practices is a
corporation, association or partnership, who may be held
criminally liable? Only the officers and agents of corporations,
associations or partnerships who have actually participated in,
authorized or ratified the unfair labor practices shall be held
criminally liable. (Art. 248)
3. Who may be held criminally liable for the unfair labor
practices committed by labor unions? Only the officers,
members of governing boards, representatives or agents or
members of labor associations or organizations who have
actually participated in, authorized or ratified the unfair labor
practices shall be held criminally liable. (Art. 249)
Prosecution and Prescriptive Period

A. CIVIL ASPECT
1. Art. 247 : Subjects to the exercise by the President or by the
Secretary of Labor and Employment of the powers vested in
them by Arts. 263 and 264 of this Code, the civil aspects of all
cases involving unfair labor practices which may include claims
for actual, moral, exemplary and other forms of damages,
attorneys fees and other affirmative relief, shall be under the
jurisdiction of the Labor Arbiters.
The Labor Arbiters shall revolve such cases within 30 days from
the time they are submitted for decision.
Recovery of civil liability in the administrative proceedings shall
bar recovery under the Civil Code.
2. Art. 290 : All unfair labor practices shall be filed with the
appropriate agency within 1 year from the accrual of such unfair
labor practice, otherwise, they shall be forever barred.
B. CRIMINAL ASPECT
1. Art. 247 : No criminal prosecution may be instituted without a
final judgment finding that an unfair labor practice was

1968
committed, having been first obtained in the administrative

proceedings. During the pendency of the administrative
proceeding, the running of the period of prescription of the
criminal offense herein penalized shall be considered
interrupted. The final judgment in the administrative proceeding
shall not be binding in the criminal case nor be considered as
evidence of guilt but merely as proof of compliance of the
requirements therein set forth.
2. Art. 290 : All unfair labor practices shall be filed with the
appropriate agency within 1 year from the accrual of such unfair
labor practice, otherwise, they shall be forever barred.
3. Art. 228 : The criminal charge shall fall under the concurrent
jurisdiction of the Municipal or regional trial Court.
4. When is an unfair labor practice deemed to be purely an
administrative offense and not a criminal act? When the
acts complained of hinges on a question of interpretation or
implementation of ambiguous provisions of an existing CBA.
(Art. 288)
Compromise
Unfair labor practice is not subject to compromise. (Gochangco
Workers Union vs. NLRC)
Relief in Unfair Labor Practice Cases

What are the various forms of relief available in unfair
labor practice cases?
1. Cease and Desist Order Order served upon such person
requiring him to cease and desist from such unfair labor
practice.
2. Affirmative order Directing full reinstatement of EE with back
pay.
3. Disestablishment Orders directing the ER to withdraw all
recognition from a company-dominated labor union and to
disestablish the same.
4. Order to bargain Affirmative order to the respondent to
bargain with the bargaining agent.
Penalties

1968
Art. 288 : Except as otherwise provided in this Code, or unless the

acts complained of hinges on a question of interpretation or
implementation of ambiguous provisions of an existing CBA, any
violation of the provisions of this Code declared to be unlawful or
penal in nature shall be punished with
1. A fine of not less than P1,000.00 nor more than P10,000.00 or
2. Imprisonment of not less than 3 months or more than 3 years ,
or
3. Both such fine and imprisonment at the discretion of the court.
In addition to such penalty, any alien found guilty shall be
summarily deported upon completion of service of sentence.
Section. 8. Union Security

8.1 Statutory Basis
Art. 248 : 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 of employment, except those EEs who
are already members of another union at the time of the signing of the
CBA.
8.2 Types Union Security Provisions
What are the different types of union security

arrangements?
1. Closed shop Agreement whereby an ER binds himself to hire
only members of the contracting union who must continue to
remain members of the union in good standing for the duration
of the agreement as a for the continued employment.
2. Union shop Only whereby an ER is permitted to employ a
union-worker, but to retain employment such worker must
become a union member after some period and maintain his
membership therein in good standing for the duration of the
agreement.
3. Maintenance and membership clause Does not require
non-members to join the union but provides that those who do
not join must maintain their membership for the duration of the
union contract, under penalty of discharge.
4. Agency shop An agreement whereby EEs must either join the
union or pay to the union as exclusive bargaining agent a sum
equal to that paid by members.
Distinguish closed shop from union shop :
* Closed shop
The ER cannot hire any worker who is not a member of the
contracting union.

1968
Membership in the contracting union is

employment and retention of employment.
condition
for
* Union shop
ER may hire worker who is not a member of the contracting
union but the worker must within a specified period after his
employment become a member of the contracting union.
Membership in the contracting union is a condition for continued
employment.
8.3 Rationale
The validity of a union security provisions is largely recognized;
it is intended to make the union strong that true collective bargaining
may be assured. Statutes recognizing the validity of closed shop
agreements have been justified on the basis of police power. The
recognition of the validity of such agreements has been held to the
most prized achievement of unionism. (Juat vs. CIR)
8.4 Validity Agreement and Effect on Freedom of Choice
A union security provision is not a restriction of the right of
freedom of association guaranteed by the Constitution. (Villar vs.
Inciong)
8.5 Contract Drafting and Interpretation of Provisions Union
Security
1. A CBA provides : The union shall have the exclusive right and
privilege to supply the company with laborers and the company
agrees to hire only such persons who are members of the union.
If the union member is expelled, is the company obliged to
terminate the EEs employment?
No. The stipulation does not establish a closed-shop agreement :
Dismissal pursuant to a closed-shop clause must clearly appear in
the CBA. (Confederated Sons of Labor vs. Anakan)
2. A CBA provides : The ER agrees to employ only members in good
standing of the union. The ER, however, reserves its rights to
accept or reject EEs where they fail to meet its requirements.
The ER agrees not to employ any new EE unless he is a member
of good standing of the union provided such new EE meets the
qualifications required by the ER. Is the ER obliged to terminate
an expelled member of the union?
No. The contract does not clearly prescribe the period within which
the EE must remain a member of good standing of the union. And it
is not clear that membership in the union is a condition for
continuation or retention of employment. Stipulations of this nature
are strictly construed; doubts are resolved against the existence of
the right to dismiss.

1968
8.6Closed Shop Agreement

1. When is a closed shop provision not applicable?
All EEs in the bargaining unit covered by a closed shop agreement
are subject to its terms, except:
a. Any EE who at the time the closed shop agreement takes
effect is a bona fide member of a religious organization
which prohibits its members from joining labor unions on
religious grounds (Victoriano vs. Elizalde Rope Workers
Union)
b. EEs already in the service and already members of a labor
union or unions other than the majority union at the time
the closed shop agreement took effect. (Sta. Cecilia
Sawmills vs. CIR)
c. Supervisors ineligible to join the majority union because of
the membership therein of EEs under their supervision.
(BISCOM vs. PAFLU)
d. EEs excluded from the closed shop by express terms of
the agreement. These exclusions applies to other types of
union security arrangements, such as the agency shop.
(National Brewery and Allied Industries Labor Union vs. SMC)
2. X union has a CBA with Y. Co. which provides The Company
undertakes not to employ anyone who is not a member of the
Union and to dismiss from employment any EE who resigns or is
expelled from the Union. Z, an EE, resigns from the union. By
reason of the agreement, he is dismissed. Is the dismissal valid?
Yes. His dismissal was effected pursuant to the closed shop
provision of the CBA. The validity of such provision is recognized.
(Just vs. CIR)
3. Union A wins over Union B in a certification election, then enters
into a CBA with the ER. The CBA contained a closed shop
provision. Is the ER obliged to dismiss the members of union?
No. The closed shop agreement cannot be enforced against EEs
who are already members of another union at the time of the
signing of the CBA. To compel the members of a minority union to
disaffiliate from their union and join the majority or contracting
union would render nugatory the right of the EEs to selforganization. (Freeman Shirt vs. CIR)
4. The Bagong Buhay Union had with the Artex Development a CBA
with a closed shop stipulation. 3 of its members affiliated
themselves with another union. When being dismissed, they
claimed they were unaware of the contents of the CBA. Is the
contention tenable?

1968
No. Neither their ignorance, nor their dissatisfaction with the CBA
would justify breach thereof or the formation by them of a union of
their own. A union member who is employed under an agreement
between the union and his ER is bound by the provisions thereof.
(Manalang vs. Artex Development)
8.7Maintenance of Membership
1. A CBA provides : Both parties agree that all EEs 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 the agreement. 3 members of the
union resigned to join a new union. They were dismissed. Is their
dismissal legal?
No. The contractual provision relied upon does not expressly
provide that membership in the union is a condition for continued
employment in order that an ER may be bound to dismiss EEs who
does not maintain their membership in the union is a condition for
continued employment. In order that an ER may be bound to
dismiss EEs who do not maintain their membership in the union,
the stipulation to this effect must be so clear as to leave no room
for doubt. An undertaking of this nature is so harsh that it must be
strictly construed and doubts must be resolved against the
existence of the right to dismiss. (Manila Cordage vs. CIR)
2. About 8 months after the execution of a CBA, some union
members joined another union and even filed a petition for
certification election. As the CBA contained a maintenance of
membership clause the bargaining agent sought the dismissal of
the EEs. Is this valid?
Yes. The union members committed acts of disloyalty. When
members seek the destruction of the organization to which they
belong, they forfeit their right to remain as members. (Tanduay
Distillery Union vs. NLRC)
3. Does the expiration of the CBA preclude the dismissal of
the guilty unionmembers?
No. The expiration of the CBA did not cleanse from them from the
acts of disloyalty. They committed such acts while the CBA was in
force. (Id.)
4. If the act of disloyalty was committed during the
freedom period, could the union security clause still be
enforced?
No. The requirement for union members to maintain their
membership is good standing ceases to be binding during the 60day freedom period immediately preceding the expiration of the
CBA. (Id.)

1968
5. X union has a CBA with Y Co., containing a maintenance of

membership clause. Due to the refusal of Z to join it, X
demanded the dismissal of Z pursuant to the clause. Is this
valid?
No. The maintenance of membership clause only applies to EEs
who are members of the contracting union at the time of the
execution of the CBA and to those who may thereafter on their own
volition join the union. (Alcantara)
8.8 Financial Security Agency Shop
Art. 248 : EEs of an appropriate collective 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, if such
non-union members accept the benefits under the CBA. The individual
authorization required under Art. 242 of this Code shall not apply to
the nonmembers of the recognized collective bargaining agent.
8.9 Liabilities of Union and ER
Liability of Union to Pay Wages and Fringe Benefits of

Illegally Dismissed EE
Where the ER compelled the EE to go on forced leave upon
recommendation of the union for alleged violation of the EE of the
closed shop agreement, the union is the party liable to pay the wages
and fringe benefits which the EE failed to receive. The ER would not
have compelled the EE were it not for the unions insistence. (Manila
Mandarin EEs Union vs. NLRC)
ER in Good Faith not Liable

Where the ER dismissed his EEs in the belief in good faith that
such dismissal was required by the closed shop provisions of the CBA
with the union, he may not be ordered to pay back compensation to
such EEs although their dismissal is illegal. (NLU vs. Zip Venetian
Blind)
Section 9 : Union Concerted Activities

9.1 Basis of Right to Engage in Concerted Activities
Art. 263 : Workers shall have the right to engage in concerted
activities for purposes of collective bargaining or for their mutual
benefit and protection. The right of legitimate labor organizations to
strike and picket and of ERs to lockout, consistent with national
interest shall continue to be recognized and respected.

1968
Policy Statement
In line with the policy of the State to encourage free trade
unionism and free collective bargaining, workers shall have the right
to engage in concerted activities for purposes of collective bargaining
or for mutual benefit and protection. A similar right to engage in
concerted activities for mutual benefit and protection is tacitly and
traditionally recognized in respect of ERs. (Ilaw at Buklod ng
Manggagawa vs. NLRC)
9.2 Strike Activity
1. Define a strike. It is a temporary stoppage of work by the
concerted action of EEs as a result of an industrial or labor
dispute. (Art. 212) A valid strike needs a labor dispute.
(Azucena)
[Labor dispute Any controversy or matter concerning terms
and conditions of employment or the association of representation
of persons in negotiation, fixing, maintaining, changing or
arranging the terms and conditions of employment, regardless of
whether or not the disputants stand in the proximate relations of
ERs and EEs. (Art. 212)
2. Fruit Canning Co. has been requiring workers to render overtime
work of 5 hours everyday for the past 6 months. Due to the
refusal of the ER to stop this practice, all the EEs refused to
work overtime and left the plant after working 8 hours during
the day. They reported for the regular work schedule the
following morning. Is this a strike?
Yes. It is a temporary stoppage of work by the concerned action of
the EEs by reason of a labor or industrial dispute. A labor dispute
includes any controversy or matter concerning terms and
conditions of employment. (Alcantara)
3. The EEs due to a dispute involving wages worked for only 8
hours a day instead of 10 hours in accordance with a practice
which had been followed for 5 years. Is the refusal of the
workers to adhere to the 10-hours work schedule a strike?
Yes. It is a limited or partial strike. (Id.)
Nature and Purpose

A strike is coercive activity resorted to by laborers to enforce
their demands. The idea behind a strike is that a company engaged in
a profitable business cannot afford to have its production or activities
interrupted, mush less, paralyzed. Because of this threat or danger of

1968
loss, the company gives in to the demand of the strikers, just so it can
maintain continuity in production. (Philippine Can Company vs. CIR)
Effect of Work Relationship

EEs who go on strike do not quit their employment. It is a mere
temporary stoppage of work. The declaration of a strike does not
amount to renunciation of the employment relation. The relationship
of ER and EE continues. (Rex Taxi vs. CIR) During a strike, the ER-EE
relationship is not terminated but merely suspended as the work
stoppage is not permanent but only temporary. The EEs status during
a strike remains but the effects of employment are suspended, hence,
a striking EE, as a rule, is not entitled to his wage during a strike.
(Azucena)
Avoidance of Strikes
1. Pacific measures must first be exhausted before strikes are to be
declared. Strikes and other coercive means of settling the
dispute are deemed justified only when peaceful alternatives
have proved unfruitful in settling the dispute. (PHILMAROA vs.
CIR)
2. The union sent demands for the dismissal of a foreman on
grounds that he maltreated an EE. The company refused to
dismiss the foreman but reopened his case in the fiscals office.
Because of the companys refusal, the union went to strike. Is
the strike legal?
No. The demand for the dismissal had been accorded the attention
it merited. (NLU vs. CIR)
Protection of Strike
What are the general protections of the right to strike?
The right to strike is given the following protections:
1. It is generally not subject to labor injunctions or restraining
order. (Art. 254)
2. EEs may not be discriminated against merely because they
have exercised the right to strike. (Art. 248)
3. The use of strike breakers is prohibited. (Art. 264)
9.3 Types, Changes and Conversion - Strikes

1968
Definitions
1. Define an economic strike Intended to forge wage and other
concessions from the ER, which is not required by law to grant.
(Consolidated Labor Association vs. Marsman) Also known as
bargaining strikes.
2. Define unfair labor practice strike Called against the unfair
labor practices of the ER, usually for the purpose of making him
desist from further committing such practices. (Azucena)
3. Define sympathetic strike One in which the striking EEs
have no demands or grievances of their own, but strike for the
purpose of property of directly or indirectly aiding others,
without direct relation to the advancement of the interest of the
strikers. (Id.)
4. What are the tests in determining the existence of an
unfair labor practice strike?
There are two tests in determining the existence of an unfair labor
practice strike:
a. Objectively, when the strike is declared in protest of unfair
labor practice which is found to have been actually
committed;
b. Subjectively, when a strike is declared in protest of what
the union believed to be unfair labor practices committed
by management, and the circumstances warranted such
belief in good faith although subsequently as not
committed. (Id.) It is not required that there be as such in
fact unfair practice committed by the ER. It suffices if such
a belief in good faith is entertained by labor as the
inducing factor for staging a strike. (Shell Oil Workers Union
vs. Shell)
Violations of CBAs except flagrant and/or malicious refusal to
comply with its economic provisions and shall not be considered
unfair labor practice and shall be strikeable. (Sec. 1, Rule XIII,
Book V, IRRs)
Change in Type
An economic strike may be converted into an unfair labor
practice strike, as when a strike for greater benefits is called off in
anticipation of negotiations and eventual agreement but is resumed
upon the commission by the ER of acts of discrimination against the
leaders of the strike. (Consolidated Labor Association vs. Marsman)
Non-Conversion Strike to Lockout

1968
A strike is not converted into a lockout by the filing of notice of

offer to return to work during pendency of dispute. (Rizal Cement
Workers Union vs. CIR)
Sympathetic Strike
Because a valid strike presupposes a labor dispute, it follows
that a sympathetic strike is illegal. (Azucena)
9.4 Lockout
Definition
Define a lockout : Lockout means that temporary refusal to any ER
to furnish work as a result of an industrial or labor dispute. (Art. 212)
It is an ERs act excluding EEs who are union members from his
business and factory premises. (Sta. Mesa Slipways vs. CIR) A valid
lockout needs a labor dispute. (Azucena)
[Labor dispute Any controversy or matter concerning terms and
conditions of employment or the association or representation of
persons in negotiating, fixing, maintaining, changing or arranging the
terms and conditions of employment, regardless of whether or not the
disputants stand in the proximate relation of ERs and EEs. (Art. 212)
Nature and Purpose

Lockout is recognized as a valid weapon of management in
collective bargaining. It may be declared to bring pressure upon the
union, where a impasse has arisen during bargaining negotiations or
where the union commits unfair labor practices, subject to statutory
requirements. (Azucena)
Effect of Work Relationship

Strike and lockout are similar in the sense that they connote
temporary stoppage of work. The relationship of ER and EE continues.
(Id.)
9.5 Legality of Strike or Lockout
What are the 6 factors affecting the legality of strike or a
lockout?
An illegal strike or lockout is one which :
1. Is contrary to a specific prohibition of law;
2. Violates a specific requirement of law;
3. Declared for an unlawful purpose
4. Employs unlawful means;

1968
5. Declared in violation of an existing injunction;

6. Contrary to an existing agreement (Azucena)
Contrary to Specific Prohibition of Law

Government EEs have the right to organize but they do not
have the right to strike. Since the terms and conditions of government
EEs are fixed by law, government workers cannot use the same
weapons employed by workers in the private sector to secure
concessions from their EEs. (SSEA vs. CA)
Procedural Requirements [N, C, SV, 7]

What are the procedural requisites for a strike to enjoy
the protection of law?
1. A notice of strike or lockout with the required contents, should
be filed with the DOLE, specifically the regional branch of the
National Conciliation and Mediation Board, copy furnished the ER
or the union, as the case may be. (Art. 263)
2. A cooling off period must be observed i.e. a time gap is
required to cool off tempers between the filing of notice and the
actual execution of the strike or lockout; the cooling off period is
30 days in case of bargaining deadlock and 15 days in case of
unfair labor practice. However, in cases of dismissal from
employment of union officers duly elected in accordance with
the union constitution and by-laws, which may constitute union
busting where the existence of the union is threatened, the
cooling off period need not be observed. (Id.)
3. During the cooling-off period, the NCMB mediates and
conciliates the parties. They are not allowed to do any act which
may disrupt or impede the early settlement of the dispute. A
part of their duty to bargain, they are obliged to participate fully
and promptly in the NCMB meetings. (Id.)
4. Before a strike or lockout may actually be started, a strike vote
or lockout vote should be taken by secret balloting, with 24-hour
prior notice to the NCMB. The decision to declare a strike
requires the secret ballot approval of the majority of the total
union membership in the bargaining unit concerned. Similarly, a
lockout needs the secret ballot concurrence of majority of the
directors or partners. (Id.)
5. The result of the strike or lockout vote should be reported to the
NCMB at least 7 days before the intended strike or lockout,
subject to the cooling off period. (Id.) This is intended to give the
DOLE an opportunity to verify whether the projected strike or
lockout really carries the imprimatur of the majority of union

1968
members or board of directors, as the case may be. A strike or

lockout held within 7-day waiting period is plainly illegal.
(Lapanday Workers Union vs. NLRC)
6. No strike or lockout may be declared on grounds involving interunion and intra-union disputes. (Id.)
7. No strike or lockout shall be declared without the labor
organization or the ER first having bargained collectively i.e.
exhaustion of grievance procedure before declaration of strike.
(Art. 264)
8. No strike or lockout shall be declared after assumption of
jurisdiction by the President of the Secretary of Labor. (Art. 263)
9. No strike or lockout shall be declared after certification or
submission of the dispute to compulsory or voluntary arbitration,
nor may a strike or lockout be declared during the pendency of
cases involving the same grounds for the strike or lockout.
(Azucena)
10.
Non-observance of procedural requirement makes strike
illegal. (NFSW vs. Ovejera)
Economic and Unfair Labor Practice Strike

1. The Labor Code recognizes only two valid grounds for the
declaration of a strike. The 2 are :
a. collective bargaining deadlock; and
b. ERs unfair labor practice.
A strike not based on any of these 2 causes is necessarily
tainted with illegality. (Azucena)
2. When does a deadlock arise? A deadlock arises when there is
an impass which presupposes reasonable effort at good faith
bargaining which, despite noble intentions, does not conclude
the agreement between the parties. Where for instance, the ER
never made any serious efforts to respond to proposals from the
union, it cannot be maintained that a deadlock arose. (Divine
Word University vs. Secretary of Labor)
3. Legality of strike is not dependent upon the ability of
management to grant demands. If said demands cannot be
granted for being unjust or unreasonable, the only consequence
should be their rejection and not the punishment of the workers
who presented them. (Caltex vs. PLO)
Give some examples of strike having a lawful purpose.
1. Strike incident to collective bargaining. (Id.)

1968
2. Self-defenses i.e. strike held against the formation of a company

dominated union. (Davao Free Workers vs. CIR)
3. Strike against ERs unfair labor practice. (Zamboanga Wood
Products vs. NLRC)
4. Unfair labor practice strike in good faith, although such acts by
the ER were not found to be unfair labor practices. (Pepsi-Cola
Labor Union vs. NLRC)
5. Strike to compel recognition of and bargaining with majority
union. (Caltex Filipino Managers and Supervisors Association vs.
CIR) [However, a strike for union recognition is through a
certification election. (Azucena)
Give some examples of strikes with no lawful purposes:
1. Strike due to rearrangement of office. (Reliance Surety vs. NLRC)
2. Strike due to companys sales evaluation policy (GTE Directories
vs. Sanchez)
3. Strike to compel removal of an EE not due to violation of union
security arrangement. (Azucena)
4. Salary distortion under the Wage Rationalization Act (IBM vs.
NLRC)
5. Inter-union or intra-union dispute. (Art. 263)
6. Strike to compel company to produce bank statements to show
actual financial condition of the company. What the union may
only require are up-to-date financial information normally
submitted to relevant government agencies such as balance
sheets and financial statements. (Sec. 5, Rule XIII, Book V, IRRs)
Means and Methods

1. Even if the purpose of a strike is valid, the strike may be held
invalid where the means employed are illegal. (United Seamens
Union of the Philippines vs. Davao Shipowners Association) The
use of violence, intimidation, restraint or coercion in carrying out
concerted activities, which are injurious to the rights of property,
or to particular individuals make a strike illegal. (Liberal Labor
Union vs. Phil. Can Co.) However, minor disorders will not suffice
to make a strike illegal (Insular Life EEs Assn.vs. Insular Life)
2. The strike by a union in a gasoline company was attended with
violence in 4 or 5 occasions. The strike is sought to be declared
illegal on grounds that it was attended by violence. Is this
allegation tenable?

1968
It depends on the factual circumstance of the case. If the acts of

violence are not pervasive, and the responsibility for the acts are
individual, then the strike may be considered still legal. (Shell Oil
Workers Union vs. Shell)
3. If some management officials were unable to leave the premises
because of a strike, may the strikers be held guilty of illegal
detention?
No. The detention was not done in criminal intent. While no doubt
to be deplored, such conduct cannot be made a basis for a finding
of criminal guilt. (People vs. Barba)
Injunction
A. RULE ON INJUNCTIONS
As a general rule, labor disputes are not subject to injunction.
However, the protective force of the law will be applied when
prohibited or unlawful acts are being or about to be committed that
will cause grave or irreparable damage to the complaining party.
(Azucena)
B. REQUIREMENTS OF VALID INJUNCTION

Art. 218 :
1. Unlawful acts are being committed or threatened to be

committed.
2. The act, if not enjoined or if not performed forthwith, may cause
grave or irreparable damage.
3. Witnesses must be heard an opportunity for cross-examination
provided.
4. The complaint is made under oath.
5. As to each item of relief, the injury to the complainant will be
greater by its denial than to defendant by its grant.
6. Complainant has no adequate remedy at law.
7. Public officers are unwilling or unable to do their duty to
adequately protect complainants property.
C. TEMPORARY RESTRAINING ORDER

1968
The Code allows the issuance of a temporary restraining order

without prior notice to other parties concerned. The issuance is
predicated on complainants testimony or petition under oath that
unless the order is issued without notice, substantial or irreparable
injury to complainants property will be unavoidable. A temporary
restraining order, however, automatically expires after 20 days. (Id.)
D. JURISDICTION TO ISSUE INJUNCTION

Lies not with the regular courts but with the Commission. (Maria
Cristina Fertilizer Plant EEs Assn. Vs. Tandayag) However, regular courts
may issue injunction if it is to prevent strikers from preventing to
lawful movement of 3rd parties. (Republic Flour Mill Workers Assn. vs.
Reyes)
E. INJUNCTION IN NATIONAL INTEREST CASES

When is a strike enjoined by the assumption of jurisdiction of the
president or the Secretary of Labor and Employment?
A strike or lockout is prohibited after assumption of jurisdiction by the
President or the Secretary of Labor :
1. in industries indispensable to the national interest; or

2. after certification or submission of the dispute to compulsory or
voluntary arbitration. (Art. 264) The Code vests the President
and the Secretary of Labor almost unlimited discretion as to
what industries may be considered indispensable to national
interest. (Azucena)
E.1 Power to Assume Jurisdiction Constitutional

Art. 263 and 264 have been enacted pursuant to the police
power to the State. It is an inherent power of the State which does not
need to be expressly conferred by the Constitution. (Union of Filipro
EEs vs. Nestle)
E.2 Certification of Labor Dispute : Automatic Injunction

Such assumption of the Secretary or certification to the NLRC for
compulsory arbitration has the effect of automatically enjoining the
intended or ongoing strike or lockout as specified in the assumption or
certification order. (Azucena) Their assumption or certification order is
immediately effective even without a return-to-work order. (Union of
Filipro EEs vs. Nestle) A strike that is undertaken despite the issuance
by the Secretary of Labor of an assumption or certification order
becomes a prohibited activity and thus illegal. (Zamboanga Wood
Products vs. NLRC) Not only union officers but also union members
who defy return-to-work order are subject to dismissal for participation
in an illegal act. (St. Scholasticas College vs. Torres)

1968
E.3 Effect of Certification for Compulsory Arbitration

The certification for compulsory arbitration overrides under
unresolved proceedings before the NLRC. Proceedings in the injunction
and unfair labor practice cases filed by the ER necessarily have to be
suspended to await the outcome of the compulsory arbitration
proceedings. (Bagong Bayan Realty vs. Ople)
E.4 Incidental Issues

May the Secretary of Labor, in the exercise of his jurisdiction
under Article 263 (g) takes cognizance which is merely incidental to
the labor dispute over which he has assumed jurisdiction? Yes,
provided said issue in involved in the labor dispute itself or otherwise
submitted to him for resolution. (St. Scholasticas College vs. Torres)
Agreement of the Parties

1. A no strike prohibition in a CBA is applicable only to economic
strikes. An unfair labor practice strike is not covered and workers
may go on strike based on the unfair labor practice despite the
no-strike provision. (Master Iron Labor Union vs. NLRC)
2. Is no-strike clause binding on the newly certified
bargaining agent? No. This is a personal undertaking of the
old certified bargaining agent which does not bind the newly
certified bargaining agent. (Benguet Consolidated vs. BCI EEs
Union)
3. There is no violation by the union of the no-strike clause if the
work stoppage was not initiated or supported by the union.
(Azucena)
4. About 1,400 EEs of a company staged a mass walk-out. The
strike was staged without prior notice and in violation of the nostrike clause. It is not however disputed that the company did
not pay the salaries of the EEs for 2 months. In the exercise of
his power of compulsory arbitration, may the Secretary of Labor
declare the strike illegal?
Even on the assumption that the illegality of the strike is
predicated on its violation of the lack of notice of strike and the nostrike clause, still the automatic finding of the illegality of strike
finds no authoritative support in the light of the attending
circumstances. (Bacus vs. Ople)
9.6 Employment of Strike breakers and Role of Peace Officers
during Strikes

1968
Art. 264 :
1. No ER shall use or employ any strike-breaker, nor shall any

person be employed as a strike-breaker.
2. No public official or EE including officers and personnel of the
AFP or the PNP, or armed person, shall bring in, introduce or
escort any individual who seeks to replace strikers in entering or
leaving the premises of a strike are, or work in place of strikers.
The police force shall keep out of the picket lines unless actual
violence or other criminal acts occur.
9.7 Improved Offer Balloting
What is meant by improved or reduced offer balloting?

1. Strike In an effort to settle a strike, the DOLE shall conduct a
referendum by secret balloting on the improved offer of the ER
on or before the 30 th day of the strike. When at least a majority
of union members vote to accept the improved offer, the striking
workers shall immediately return to work and the ER shall
thereupon readmit them upon signing of the agreement.
2. Lockout In case of a lockout, the DOLE shall also conduct a
referendum by secret balloting on the reduced offer of the union
on or before the 30th day of the lockout. When at least a majority
of the board of directors or trustees or the partners holding the
controlling interest in the case of partnership vote to accept the
reduced offer, the workers shall immediately return to work and
the ER shall thereupon readmit them upon signing of the
agreement. (Art. 265)
9.8 Picketing, Slowdown and other Concerted Activities
A. DEFINITION
Define picketing Walking or patrolling in the vicinity of a
place of business involved in a labor dispute and, by word of mouth,
banner or placard, undertaking to inform the public concerning the
dispute. Picketing includes stationing persons at the site of the labor
dispute for the purpose of exercising coercion or intimidation on other.
However, the requirement of the law is that the picket must be a
moving picket. (Azucena)
B. PICKETING AND LIBEL LAWS

The mere fact that the language employed by the picketers is
far from being courteous and polite does not give rise to a cause for
libel and damages. (PCIB vs. Philnabank EEs Assn.)

1968
C. ER-EE RELATIONSHIP
Absence of an ER-EE relationship does not make picketing illegal.
(De Leon vs. NLU)
D. RESTRICTIONS
1. Art. 264 : No person engaged in picketing shall commit any act
of violence, coercion or intimidation or obstruct the free ingress
to or egress from the ERs premises for lawful purposes, or
obstruct public thoroughfares.
2. A picketing labor union has no right to prevent EEs of another
company from getting in and out of its rented premises,
otherwise it will be held liable for damages against an innocent
by-stander. (Liwayway vs. Permanent Concrete Workers Union)
3. Picketing as a concerted activity is subject to the same
limitations as strike, particularly as to lawful purpose and lawful
means. Like the freedom of expression in general, it has limits.
Thus, to the extent that it is an instrument of coercion rather
than of persuasion, it cannot rightfully be entitled to the
protection associated with free speech. (Security Bank EEs Union
vs. Security Bank)
E. PROHIBITED ACTIVITIES
Art. 264 : No person shall obstruct, impede or interfere with by
force, violence, coercion, threats or intimidation any peaceful picketing
by EEs during any labor controversy or in the exercise of the right of
self-organization or collective bargaining, or shall aid or abet such
obstruction or interference.
F. POWER OF COURTS TO CONFINE PICKETING

While peaceful picketing is entitled to protection as an exercise
of free speech, courts are not without power to confine or localize the
sphere of communication or the demonstration to the parties to the
labor dispute, including those with related interest, and to insulate
establishments or persons with no industrial connection or having
interest totally foreign to the context of the dispute. (PAFLU vs.
Cloribel)
Slowdown
1. Define slowdown. Method by which ones EEs, without seeking a
complete stoppage of work, retard production and distribution in

1968
an effort to compel compliance by the ER with the labor

demands made upon by him. (Azucena)
2. Slowdown is considered inherently illicit and unjustifiable
because while the EEs continue to work and remain at their
positions and accept wages from them, they at the same time
select what part of their allocated task they care to perform of
their own volitions or refuse openly or secretly to the ERs
damage to the other work. (IBM vs. NLRC)
Boycott
1. Define boycott : It is the concerted refusal to patronize an ERs
goods and services and to persuade others to a like refusal. (Id.)
2. Is a boycott lawful? EEs may lawfully exert economic pressure
on their ER by means of a boycott, provided they act peaceably
and honestly. (Alcantara)
9.9 Consequences of Concerted Actions
Strikers Retention or Loss of Employment

Does participation in a strike mean loss of employment for
the worker?
A mere participation of a worker in a lawful strike shall not constitute
sufficient ground for termination of his employment, even if a
replacement had been hired by the ER during such lawful strike. (Art.
264) However, if the strike is illegal.:
1. The union officer who knowingly participated in an illegal strike;
and
2. Any worker or union officer who knowingly participates in the
commission of illegal acts during a strike may be declared to
have lost their employment status.
An ordinary striking worker cannot be terminated for mere
participation in an illegal strike. There must be proof that he
committed illegal acts during a strike. (INPORT vs. NLRC)
Who Declares Loss of Employment Status

The law grants the ER the option of declaring loss of
employment status. (Id.)

1968
No Financial Assistance to Dismissed Strikers

Financial assistance is not required to be given to a worker who
participated in an illegal strike. (Chua vs. NLRC)
Strike on Good Faith Belief that Company Committed

Unfair Labor Practice
Strikers who conducted an illegal strike on the good-faith belief
that the company had committed unfair labor practice, which turns
out to be false, do not forfeit their employment. They are entitled to
reinstatement. (Ferrer vs. CIR)
Strike not Marked with Good Faith

Strikers who conducted a strike which is illegal and not marked
with good faith forfeit their employment. (Reliance Surety vs. NLRC)
Application of the Pari-Delicto Rule
Is the pari-delicto rule applicable in strikes and lockouts?
Yes. When the parties are in pari delicto the EEs having staged an
illegal strike and the ER having declared an illegal lockout such
situation warrants the restoration of the status quo ante and brining
back the parties to their respective positions before the illegal strike
and illegal lockout through reinstatement, without backwages, of the
dismisses EEs. (Philippine Inter-Fashion vs. NLRC)
Backwages
1. In an economic strike, the strikers are not entitled to backwages
on the principle that a fair days wage accrues only for a fair
days labor. (SMB vs. NLU) For an unfair labor practice strike,
the right of the workers to receive backpay depends on whether
they are voluntary or involuntary strikers. If they are involuntary
strikers, they are entitled to backpay. (Macleod vs. Progressive
Federation of Labor) However, when they are voluntary strikers,
that is, they were not discriminatorily dismissed by the ER, then
they are generally not entitled to backpay, except when they
voluntary offer to return to work and the ER refuses to readmit
them. (Cromwell EEs Assn. vs. CIR)
2. Are EEs who are unable to work by reason of a lockout validly
declared by the ER entitled to wages corresponding to the period
of the lockout?
No. The refusal of the ER to furnish work is unlawful. And since the
EEs did not render any service, they should not get paid; this in
accordance with the no wok no pay rule. (Alcantara)

1968
ERs Right to Hire Replacement during Strike

Discuss the principles governing the hiring of worker
replacements during a strike? During the pendency of an economic
strike, the ER may hire replacements on a permanent basis and is not
bound to discharge such permanent replacements in the event that
the strikers decide to resume their employment. (Consolidated Labor
Assn. vs. Marsman) On the other hand, while replacements may also be
hired by the ER to take the places left vacant by the EEs engaged in
unfair labor practice strike, such replacements are not permanent and
the ER under a duty to dismiss them as soon as the strikers request
reinstatement in their previous position. (Insular Life EEs Assn. vs.
Insular Life)
Damages
Union officers may not be vicariously held liable for illegal act of
strikers. The rule of vicarious liability no longer applies. (Benguet
Consolidated vs. BCI EEs Assn.)
Section 10. Remedies

What are the different remedies available in labor
disputes?
1. Grievance procedure In adjustment of complaint following
steps prescribed in the CBA or company policy.
2. Conciliation Process where a disinterested 3 rd party meets
with management and labor, at their request or otherwise,
during a labor dispute or in collective bargaining conferences,
and by cooling tempers, aids in reaching an agreement.
3. Mediation A 3rd party studies each side of the dispute then
makes proposal for the disputants to consider, but a mediator
cannot render an award.
4. Enforcement or compliance order An act of the Secretary of
Labor in the exercise of his visitorial or administrative authority
to enforce labor laws, polices, plans, programs, rules and
regulations.
5. Certification of bargaining representatives Determination
of which union shall represent EEs in collective bargaining. This
is handled by Med-Arbiters of DOLE.
6. Arbitration The submission of a dispute to an impartial
determination on the basis of impartial evidence and arguments
of the parties.
7. Assumption of jurisdiction An authority vested by law to the
Secretary of Labor or the President to decide a dispute causing

1968
or likely to cause a strike or lockout in an industry indispensable

to the national interest.
8. Certification to NLRC An action of the Secretary of Labor
empowering the NLRC to compulsorily arbitrate a dispute
causing or likely to cause a strike or lockout in an industry
indispensable to the national interest.
9. Injunction An extraordinary remedy and is not favored in
labor law. As a general law, an injunction or a restraining order
to prevent or stop the doing of an act is avoided in resolving a
labor dispute because the state policy and aim is to encourage
the parties to use the non-judicial processes of negotiation and
compromise, mediation and arbitration.
10.
Judicial action Complaint with regular court in cases
falling under its jurisdiction i.e. criminal case of unfair labor
practice.
11.
Appeal Process by which an order, decision or award is
elevated to a higher authority, on specified grounds, so that the
order, decision or award may be modified or set aside and a new
one issued.
12.
Judicial review No law allows appeal from decision of
the Secretary of Labor or of the NLRC, or of a voluntary
arbitrator. In these cases, the special civil action of certiorari,
prohibition and mandamus may be lodged with the Supreme
Court.
13.
Compromise settlement In any stage of these
settlement processes, the labor dispute may be resolved by the
parties through a compromise agreement, provided the
agreement is freely entered into and is not contrary to law,
moral or public policy. (Azucena)
What cases fall under the exclusive and original jurisdiction of
labor arbiters? Labor arbiters shall have exclusive and
original jurisdiction to hear and decide within 30 working
days after submission of the case by the parties for
decision without extension the following cases involving
all workers, whether agricultural or non-agricultural :
1. Unfair labor practices.
2. Termination disputes.
3. If accompanied with a claim for reinstatement, those cases that
workers may file involving wages, rates of pay, hours of work
and other terms and conditions of employment.
4. Claims for actual, moral and exemplary and other forms of
damages arising form the ER-EE relations.
5. Cases arising from any violation of Art. 264 of this Code,
including questions involving the legality of strikes and lockouts.

1968
6. Except claims for EEs compensation, social security, medicare

and maternity benefits, all other claims arising from ER-EE
relations, including those of persons in domestic or household
service, involving an amount exceeding P5,000.00 whether or
not accompanied with a claim for reinstatement.
Does service of notice of hearing upon respondent confer
jurisdiction of the former? No. Notices of hearings are not
summonses. In the absence of service of summons or a valid
waiver thereof, the hearings and judgment rendered by the
Labor Arbiter are null and void. (Larkins vs. NLRC)
Do labor arbiters have jurisdiction to hear and decide
claims for damages arising from unfair labor practices?
Yes. The civil aspects of all cases involving unfair labor practices,
which may include claims for actual, moral, exemplary and other
forms of damages, attorneys fees and other affirmative reliefs,
shall be under the jurisdiction of the labor arbiters. (Art. 247)
Does the Regional Director of the DOLE have jurisdiction
to hear and decide money claims of workers? Yes. He is
empowered through summary procedure, to hear money claims
and benefits, including legal interest, owing to a househelper
provided the complaint does not include a claim for
reinstatement and the aggregate money claims of each EE or
househelper does not exceed. (Art. 129)
How are disputes arising from wage distortions settled?
When there is a CBA, through the grievance procedure and, if it
remains unresolved, through voluntary arbitration. When there is
no CBA, the dispute shall be settled through the NCMB and, if it
remains unresolved after 10 calendar days of conciliation, shall
be referred to the appropriate branch of the NLRC. (Art. 124)
Cases not falling under the jurisdiction of labor arbiters:
1. Civil action to collect sum of money owed by the EE to the ER.
(Georg Gortjahm vs. Isnani)
2. Action for damages for breach of contractual stipulations. (DaiIchi Electronis vs. Villarama)
3. Tortious acts by the president of a company against EEs.
(Medina vs. Bartolome)
4. Replevin case to recover fishing vessel from striking crew
members. (Basaya vs. Militante)
5. Civil case to annul the public auction sale of several properties
of the ER used to pay liabilities to the EEs on the ground that
the properties were owned by 3 rd parties. (Manliguez vs. CA) In
contrast to the Pucan vs. Bengzon case, what was being
questioned was not the writ of executions issued by the DOLE
but the ownership over the property in question. (Alcantara)

1968
6. Suit filed by an independent contractor. (Cabe vs. Tumang)

7. Intra-company disputes. (Dy vs. NLRC)
Cases falling under the jurisdiction of the labor arbiters:
1. Legality of strikes and lockouts. (Samahang Manggagawa ng
Liberty Commercial Center vs. Pimentel)
2. Suit for damages from picketing that accompany a strike. (NFL
vs. Eisma)
3. Complaint arising from implementation of union security clause.
(Sanyo Philippines Workers Union vs. Canizares)
May an illegally dismissed EE still file a civil case for tort
against the ER if he was already awarded damages in the
illegal dismissal case that he filed with the labor arbiter?
No. The judgment of the labor arbiter granting the illegally
dismissed EE separated pay operated as a bar to his subsequent
action for a tort against the ER if he was already awarded damages
in the illegally dismissed EE separation pay operated as a bar to his
subsequent action for the recovery of damages before the regular
court under the doctrine of res judicata. (Primero vs. IAC)
In his complaint with the labor arbiter for illegal
dismissal, A sought payment for holiday pay and the 13 th
month pay and holiday pay even if he did not prove that
he was paid these benefits?
Yes. The claimants allegation which need not be supported by
evidence unless it is an essential part of the cause of action. The
burden of proving that payment of said benefits have been made
rests with the ER. (Seaborne Carriers vs. NLRC)
May the labor arbiter increase the original award it made
after its decision was rendered final and executory by a
dismissal of the NLRC of an appeal with respect to the
said case?
Yes. The backwages merely correspond to the period of dismissal
when the case was originally heard by the labor arbiter.
Recomputation is necessary to arrive at a just and proper
determination of the monetary awards. (Industrial Timber vs. NLRC)
May the labor arbiter adjudicate on claims not alleged in
the complaint?
Yes, provided the claims are made in the complaints position paper.
But claims for wage differentials are not made in the complaint or
in the position paper cannot be passed upon. (DBP vs. NLRC)

1968
May the labor arbiter decide the case on the basis of a

supplemental position paper submitted after the parties
have filed their position papers and agreed to consider
the case submitted for the decision?
No. After submitting the case for decision, the parties shall not be
allowed to allege facts not referred to and any cause of action not
included in the complaint or position papers, affidavits and other
documents. (Manebo vs. NLRC)
Does the labor arbiter have jurisdiction over a claim of an
EE of the SEAFDEC-AQD an international organization?
No. Being an international organization SEAFDEC-AQD enjoys
functional independence and freedom from control of the state in
whose territory its office is located. (SEAFDEC-AQD vs. NLRC)
How about JUSMAG? No. The act of hiring cannot be
considered a waiver of the foreign states immunity from suit.
(JUSMAG vs. NLRC)
Does the Med-Arbiter have jurisdiction over inter-union
conflicts? Yes. The decision of the Med-Arbiter is appealable to
the Secretary of Labor. (Pepsi Cola Sales and Advertising Union vs.
Secretary of Labor)
May a legally dismissed EE be entitled to receive moral
and exemplary damages? Yes, provided the dismissal is
effected in an anti-social and oppressive manner. (Quisaba vs.
Sta. Ines Veneer and Plywood)
What matters falls under the exclusive and original
jurisdiction of voluntary arbitrators provided for in a
CBA?
Unresolved grievances arising from the:
1. Interpretation or implementation of the CBA and those
arising from the interpretation of enforcement of company
personnel policies;
2. Interpretation and enforcement of company personnel
policies; and
3. All other disputes including unfair labor practices and
bargaining deadlocks submitted to them by agreement of
the parties. (Art. 262)
Within what period should a complaint for unfair labor
practice, illegal dismissal and money claims be filed with
the labor arbiters?
1. Unfair labor practice 1 year from accrual thereof (Art. 290)
2. Illegal dismissal 4 years from accrual thereof (Art. 1146, NCC)

1968
3. Money claims 3 years form the time the cause of actions

accrues (Art. 291)
Give the effect of the pendency of a money claim before
the labor arbiter on criminal and civil actions arising from
or based on the same cause of action?
Money claims shall be filed independently of the criminal action
that may be instituted in the proper courts.
Pending the final determination of the merits of the money
claims, no civil action arising from the same cause of action shall
be filed with any court. (Art. 292)
Are the technical rules of evidence followed
proceedings before labor arbiters? No. (Art. 221)
in
May non-lawyers appear before labor arbiters? Non

lawyers may appear before labor arbiters only if they represent
themselves or their organizations or members thereof. (Art. 222)
What are the grounds so that decisions of labor arbiters
are appealable?
Decisions of labor arbiters are appealable within 10 calendar
days to the NLRC on the following grounds:
1. If there is prima facie evidence of abuse of discretion on

the part of the labor arbiter.
2. If the decision, order or award was secured through fraud
or coercion, including graft and corruption.
3. If made purely on questions of law.
4. If serious errors in the findings of facts are raised which
would cause grave or irreparable damage or injury to the
appellant. (Art. 223)
How is appeal perfected? Filing by the appellant with the
labor arbiter his memorandum of appeal, copy furnished the
appellee, and the payment of the appeal within 10 calendar
days. (Vir-Jen Shipping vs. NLRC)
Is order of reinstatement of a labor arbiter stayed by an
appeal? Yes, for any information or date concerning any matter
or question relative to the object of the investigation. (Art. 219)
May the NLRC order the reinstatement of workers who did
not appeal from a decision of the labor arbiter ordering
payment of separation pay in lieu of reinstatements? No.
An appellee who has not himself appealed cannot obtained from
the appellate court below. (SMI Fish Industries vs. NLRC)

1968
Is the decision of the NLRC appealable to the Secretary of

Labor? No. Decisions of the NLRC before the Supreme Court by
means of a petition for certiorari. (Alcantara)
May the NLRC consider evidence submitted for the first
time on appeal? Yes. (Bristol Laboratories vs. NLRC)
Does the NLRC exercise any original jurisdiction? Yes. In
cases of labor disputes certified to it by the Secretary of Labor
for compulsory arbitration and it can also entertain positions for
injunction. (Id.)
Is PD 1508, the Katarungang Pambarangay
applicable to labor cases? No. (Montoya vs. Escayo)
Law,
Give the scope of visitorial powers of the Secretary of

Labor and Employment and regional directors under Art.
128 of the Labor Code?
The visitorial power provided for under Art. 128 is confined to
checking compliance with labor standard laws, then the regional
director must order the necessary rectifications. However, this does
not include adjudication of money claims clearly within the ambit of
the labor arbiters authority under Art. 217 of the Labor Code.
(Ong vs. Parel)
If a party submits to the jurisdiction of a labor tribunal
and obtains an unfavorable judgment, can later on
question the jurisdiction of the said tribunal?
No. When a party has voluntarily submitted to the jurisdiction of a
court tribunal, he cannot later on, if he gets an unfavorable
judgment adopt an inconsistent posture and attack the latters
jurisdiction. (Tijam vs. Sibonghanoy)
Is the reinstatement aspect of the decision of the labor
arbiter self-executory even pending appeal?
No. There must be a writ of execution which may be issued by the
Labor Arbiter motu proprio or on motion of an interested party.
(Maranaw Hotel vs. NLRC)
Do courts or administrative bodies have the power to set
or fix rates of pay, wages, hours of work and other terms
and conditions of employment?
As a rule, courts and administrative bodies cannot fix the terms
and conditions of employment because what is being promoted is
collective bargaining. (Alcantara)
Section 11. Choice Questions on Public Sector EEs


1968
1. J, a supervisor of Casino Filipino was dismissed by

PAGCOR due to loss of confidence. He filed a case for
damages with the RTC. PAGCOR filed a motion to dismiss
on ground of lack of jurisdiction of the RTC to hear
thecase. Is the ground valid?
Yes. The case involving whether J was illegally dismissed falls under
the jurisdiction of the Merits Systems Protection Board and the Civil
Service Commission. The claim for damages was merely incidental
to the illegal dismissal. (PAGCOR vs. CA)
2. Is the case not cognizable by the labor arbiter? No.
PAGCOR is a GOCC with an original charter. (Id.)
3. What is GOCC with original charter? It is a GOCC with a
legislative charter i.e. PAGCOR and DBP. (Alcantara)
4. May EEs of the government go on strike and may the
latter declare a lockout? No. The terms and conditions of
government EEs are fixed by law and thus they are prohibited
from using the normal instruments available to private sector
EEs. However, under Sec. 13 of EO 180, the terms and
conditions or improvements thereof not fixed by law may be the
subject of negotiations between duly recognized EEs
organizations and appropriate government authorities. (Id.)
5. Assuming that EEs of GOCCs with original charters
cannot go on strike, may they nevertheless from unions
and petition for certification election?
Yes. Although they are covered by civil service laws, they are
guaranteed the right to self-organization. Under EO 180, where
there are two or more duly registered EEs organizations in the
appropriate bargaining unit, the BLR shall, upon petition order the
conduct of certification election and certify the winner as the
exclusive representative of the rank-and-file EEs in the said
organizational unit. (TUPAS vs. NHA)
6. Some 800 public school teachers
classes and instead converged at
protest the non-payment of their
action lawful? No. EEs in the public
right to strike. (MPSTA vs. Laguio)
did not conduct their

Liwasang Bonifacio to
benefits. Is the mass
service do not have the
7. The NHC is 100% government-owned organized in

accordance with EO 399, the Uniform Charter of
Government Corporations. Are its EEs covered by the
provisions of the Labor Code?
Yes. The NHC is incorporated under and pursuant to a general
legislation and not by an act of Congress or by special law. (TUPAS
vs. NHC)

1968
8. The Public Sector Management Council has jurisdiction to hear

charges of unfair labor practice filed by a government EE against
their ER. In deciding the unfair labor practice charge, the PSLMC
may also rule on the complainants dismissal if the two issues
are unavoidably linked. (PLM vs. CSC)

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LEX LEONUM FRATERNITAS

Statutory Source and Interpretation

Statutory provisions of the Labor Code are construed liberally in favor

LEX LEONUM FRATERNITAS

A. Charter certificate within 30 days from its issuance by the

LEX LEONUM FRATERNITAS

Collective bargaining Negotiations towards a collective

Section 2. Right to Self-Organization

Constitutional Basis of Right

I. Art. 243 : Coverage and EEs right to self-organization

LEX LEONUM FRATERNITAS

1. EEs of government corporations established under the

1. Managerial EEs are not eligible to join, assist, or form any

LEX LEONUM FRATERNITAS

Government Corporation EEs

Rights of EEs in the public service

[Supervisory EEs] Those, who, in the interest of the ER,

No. This is merely ineffective or clerical recommendation. (Laguna

LEX LEONUM FRATERNITAS

4. Supervisors were given the job of either to assist the foreman if

A. RIGHT TO ORGANIZE and LIMITATION

LEX LEONUM FRATERNITAS

Managerial and Confidential EEs

LEX LEONUM FRATERNITAS

Any provision of the law to the contrary notwithstanding any

Section 3. Labor Organization

LEX LEONUM FRATERNITAS

C. NATIONAL UNION FEDERATION

D. LEGITIMATE LABOR ORGANIZATION

D.1 Dole Registration Basis

LEX LEONUM FRATERNITAS

Art. 212 : Any labor organization whose information, function or

Union Registration and Procedure Requirements

Any applicant labor organization shall acquire legal personality and

Each of which must be a duly recognized collective bargaining

LEX LEONUM FRATERNITAS

B. Names and addresses of the companies where the

III. What is the period for action on application? 30 days from

A. REQUIREMENT AND RATIONALE

Action or Denial of Application, and Remedy

Effects on Freedom of Association

LEX LEONUM FRATERNITAS

While disaffiliation from a labor union is not open to legal

II. Can the union effect a compromise of the money claims of

LEX LEONUM FRATERNITAS

No, the waiver of reinstatement, must be regarded as a personal right

Cancellation of the Union Certificate Registration

I. What are the grounds for its cancellation of union

LEX LEONUM FRATERNITAS

9. Failure to submit list of individual members once a year or when

I. What activities by aliens are prohibited?

II. What activities by aliens are regulated?

LEX LEONUM FRATERNITAS

Rights of Union Members

LEX LEONUM FRATERNITAS

2. Art. 277 : Any EE, whether employed for a definite period or

A. 2 Due Process Rules

LEX LEONUM FRATERNITAS

1. The members shall directly elect their officers, including those of

B.1 Voters List

B.2 Disqualification of Candidates

LEX LEONUM FRATERNITAS

B.3 Expulsion Remedy

B.4 Election Invalid