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Labor Relations

Ateneo de Davao University


Based on the Book of Azucena and the lectures of Fr. Nazareno

Creation and Composition (NLRC)


Labor Relations (Art. 218)
It is essentially inter-party, which means the
employer and employees themselves must deal
with their problems in a manner mutually suits
them best
The government labor relations policy encourages
democratic and self-devised method of labormanagement relations
General Rule: Free agreement between the parties
Exception: Government intervention
The
policy
prefers
voluntary
instead
of
compulsory modes of dispute settlement
The government steps in only when the parties
themselves foil to reach an agreement to the
prejudice of public interest or one disregards the
defined rights of the other
o i.e. the employer busts the union or
commits other form of unfair labor practice
(ULP); or
o when the union blockades the company
gate
Workers Participation
SC ruled that employees or their union should be
allowed to participate in the formulation of the
code of discipline which the employees will be
told to observe
In the PAL case, the NLRC directed the company
to share with the union the prerogative to
formulate a Code of Discipline. The SC upheld
the unions objection to the implementation of the
code which the management had revised without
the unions participation.
Labor Education
Enlightenment of workers concerning their rights
and obligations is a State policy.
Conduct of labor education is an obligation of
labor organizations under Art. 249
Definitions (Article 219)
Commission the National Relation Commission
Bureau Bureau of Labor Relations and/or the Labor
Relations Division in the regional offices established
under PD No. 1 in the Department of Labor
Shelumiel Ryan B. Abapo, CPA
3-Manresa
AdDU College of Law

Board the National Conciliation and Mediation Board


(NCMB) established under EO No. 126
Council the tripartite Voluntary Artbitration Advisory
Council established under EO No. 126 as amended
Employer any person acting in the interest of an
employer, directly or indirectly. The term shall NOT
include any labor organization or any of its officers or
agents except when acting as employer
Employee Includes any person in the employ of the
employer. It shall include any individual whose work has
ceased as a result or in connection with any current
labor dispute or because of any ULP if he has not
obtained any other substantially equivalent and regular
employment
Labor Organization any union or association of
employees which exists in whole or in part for the
purpose of collective bargaining or of dealing with
employers concerning terms and conditions of
employment
Legitimate Labor Organization means any labor
organization duly registered with the DOLE and includes
any branch or local thereof
Company Union any labor organization whose
formation, function, or administration has been assisted
by any act defined as ULP by this Code
Bargaining representative a legitimate labor
organization of any officer or agent of such organization
whether or not employed by the employer
Unfair Labor Practice means any unfair labor
practice as expressly defined by the Labor Code
Labor Dispute includes 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 or employment, regardless of whether
the disputants stand in the proximate relation of
employer and employee
Managerial Employee is one vested with powers or
prerogatives to lay down and execute management
policies and/or hire, transfer, suspend, lay off, recall,
discharge, assign or discipline employees.
Supervisory Employees are those who, in the
interest of employer, effectively recommend such
managerial actions if the exercise of such
authority is not merely routinary or clerical in
nature but requires the use of independent
judgment
Rank and File Employees all employees not
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Labor Relations
Ateneo de Davao University
Based on the Book of Azucena and the lectures of Fr. Nazareno

falling within any of the above definitions


Voluntary Arbitrator any person accredited by the
Board (NCMB) as such, or any person named or
designated in the Collective Bargaining Agreement
(CBA) by the parties to act as their Voluntary Arbitrator
or one chosen, with or without the assistance of the
NCMB, pursuant to a selection procedure agreed upon
in the CBA, or any official that may be authorized by the
Secretary of DOLE to act as Voluntary Arbitrator upon
the written request and agreement of the parties to a
labor dispute
Strike any temporary stoppage of work by the
concerted action of employees as a result of an
industrial or labor dispute
Lockout means the temporary refusal of an employer
to furnish work as a result of an industrial or labor
dispute
Internal Union Dispute includes all disputes or
grievances
arising
from any violation
of
or
disagreement over any provision of the constitution and
by-laws of a union, including any violation of the rights
and conditions of union membership provided for in this
Code
Strike-breaker means any person who obstructs,
impedes, or interferes with by force, violence, coercion,
threats or intimidation any peaceful picketing by
employees during any labor controversy affecting
wages, hours, or conditions of work or in the exercise of
the right of self-organization or collective bargaining
Strike area the establishment, warehouses, depots,
plants or offices, including the sites or premises used as
runaway shops, of the employer struck against, as well
as the immediate vicinity actually used by picketing
strikers in moving to and fro before all points of
entrance to and exit from said establishment
National Labor Relations Commission (Art. 220)
Attached to the Department of Labor and
Employment (DOLE) for program and policy
coordination only
Composed of a Chairman and 23 members
o 8 members each shall be chosen among the
nominees of the workers and employers
organizations
o The Chairman and the remaining 7
remaining members shall come from the
public sector, the latter to be chosen
preferably from among the incumbent labor
Shelumiel Ryan B. Abapo, CPA
3-Manresa
AdDU College of Law

arbiters
Upon assumption into office, the members
nominated by the workers and employers
organizations shall divest themselves of any
affiliation with or interest in the federation or
association to which they belong
It may sit en banc or in 8 divisions each
composed of 3 members
o Shall sit en banc only for purposes of
1. promulgating rules and regulations
governing the hearing and disposition
of cases before any of its divisions
and regional branches
2. formulating policies affecting its
administration and operations
3. to allow cases within the jurisdiction
of any division to be heard and decide
by another division; and
4. to recommend the appointment of a
labor arbiter
Shall exercise its adjudicatory and all other
powers, functions, and duties through its
divisions
Of the 8 divisions, the 1st-6th divisions shall
handle cases coming from the NCR and
other parts of Luzon
7th and 8th divisions on cases from Visayas
and Mindanao
The divisions of the Commission shall have
exclusive appellate jurisdiction over cases
within their respective territorial jurisdiction
The concurrence of 2 commissioners of a
division shall be necessary for the
pronouncement of a judgment or resolution
When the required membership in a division
is not complete and the concurrence of 2
commissioners cannot be obtained, the
Chairman
shall
designate
additional
Commissioners from other divisions as may
be necessary
The
Chairman
shall
be
the
Presiding
st
Commissioner of the 1 Division and the 7 other
members from the public sector shall be the
Presiding Commissioners of the 2nd to 8th divisions
o In case of the absence or incapacity of the
Chairman, the Presiding Commissioner of
the 2nd division shall be Acting Chairman
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Labor Relations
Ateneo de Davao University
Based on the Book of Azucena and the lectures of Fr. Nazareno

o The Chairman, aided by the Executive Clerk


of the Commission, shall have exclusive
administrative
supervision
over
the
Commission and its regional branches and
all its personnel, including the Labor
Arbiters
The Commission and its 8 divisions shall be
assisted by the Commission Attorneys (CA) in its
appellate and adjudicatory functions whose terms
shall be coterminous with the Commissioners with
whom they are assigned
o The Commission Attorneys shall be
members of the Philippine Bar with at least
1 year experience or exposure in the field of
labor-management relations
o Receive annual salaries and be entitled for
allowances and benefits falling under Salary
Grade 26
o There shall be as many CAs as may be
necessary to the effective and efficient
operation of the Commission but in no case
more than 3 be assigned to the Office of the
Chairman and each Commissioner
o No Labor Arbiter shall be assigned to
perform the functions of the CA nor detailed
to the office of any Commissioner
Headquaters, Branches, and Provincial Extention
Units (Article 221)
The Commission and its 1st to 6th divisions shall
have their main offices in Metro Manila
The 7th and 8th divisions in Cebu City and Cagayan
de Oro, respectively
Shall establish as many regional branches as
there are regional offices of the DOLE, subregional branches or provincial extension units
There shall be as many labor arbiters as may be
necessary for the effective and efficient operation
of the Commission
Appointment and Qualifications (Article 222)
The Chairman and other Commissioners shall
be members of the Philippine Bar and
o must have been engaged in the practice of
law in the Philippines for at least 15 years
with at least 5 years experience or
exposure in the field of labor-management
Shelumiel Ryan B. Abapo, CPA
3-Manresa
AdDU College of Law

relations; and
o preferably be residents of the region where
they shall hold office
The Labor Arbiters shall be members of the
Philippine Bar and
o Must have been engaged in the practice of
law in the Philippines for at least 10 years,
with at least 5 years experience or
exposure in the field of labor-management
relations
The Chairman and other Commissioners and the
Labor Arbiters shall hold office during good
behavior until they reach the age of 65 unless
sooner removed for cause provided by law, or
incapacitated to discharge the duties of their
office
o The President of the RP may extend the
services of the Commissioners and Labor
Arbiters up to the maximum age of 70
years upon the recommendation of the
Commission
The
Chairman,
the
Division
Presiding
Commissioners, and other Commissioners shall
be appointed by the President
o Appointment to any vacancy in a specific
division shall come only from nominees of
the
sector
which
nominated
the
predecessor
o The Labor Arbiter shall be appointed by the
President upon recommendation of the
Commission en banc to a specific
arbitration branch preferably in the region
where they are residents, subject to Civil
Service Law, rules and regulations
o The Labor Arbiters who are presently
holding office in the region where they are
residents shall be deemed appointed
thereat
Salaries, Benefits, and Emoluments (Article 223)
The Chairman and members of the Commission
shall have the same rank, receive annual salary
equivalent to, and be entitled to the same
allowances, retirement and benefits as those of
the Presiding Justice and Associate Justices of the
CA
Labor Arbiters shall have the same rank, receive
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Labor Relations
Ateneo de Davao University
Based on the Book of Azucena and the lectures of Fr. Nazareno

an annual salary equivalent to an entitled to the


same allowances, retirement, and other benefits
and privileges as those of the Judges of the RTC
Overview of the NLRC
The NLRC is the principal government agency that
hears and decides labor-management disputes
The countrys labor court
It is independent from DOLE
Attached to the DOLE only for purposes of
policy coordination
It functions as a court, but the law wants the
NLRC to be more expeditious and less tied to
technical rules than regular courts
Has regional arbitration branches or RABs
Labor Arbiters are the NLRC representatives in the
countrys various regions
They arbitrate and decide disputes between
parties
Decisions may be brought up or appealed
to the NLRC Division comprising the
arbiters region
Original Jurisdiction of NLRC
Petition for injunction
Certified cases or those national interest labor
disputes certified or referred to the NLRC for
compulsory arbitration under Art. 227
o The certification of the case to the NLRC
stops the conduct of a strike or lockout
even if there is objection to the certification
order of the DOLE Secretary
o The certification order is issued to protect
the
peoples
interest,
compels
the
continuation of business operation
o Non-compliance is an illegal act
Chapter II Power and Duties
Jurisdiction of Labor Arbiters and the Commission
(Article 224)
Compulsory Arbitration the process of settlement
of labor disputes by a government agency that has the
authority to investigate and make an award which is
binding on all the parties
Labor Arbiter is clothed with the original and
Shelumiel Ryan B. Abapo, CPA
3-Manresa
AdDU College of Law

exclusive authority to conduct compulsory


arbitration
When the LA rendered his decision, the case is
considered finally resolved by arbitration
The NLRC, through its Divisions, conducts
compulsory arbitration only in national interest
cases certified or referred to it by the DOLE
Secretary
Cases
under
the
Original
and
Exclusive
Jurisdiction of Labor Arbiters (Article 224, 1-6)
(Additional, 7-10)
1. Unfair labor practices (ULP) cases
2. Termination disputes
3. Cases filed accompanied with a claim for
reinstatement
4. Claims for actual, moral, exemplary, and other
forms of damages arising from employeremployee relationships
5. Claims arising from any violation on Article 278
6. Claims
arising
from
employer-employee
relationship including those of persons in
domestic or household service, involving an
amount exceeding P5,000 regardless whether
accompanied with a claim for reinstatement,
EXCEP claims for Employees Compensation,
Social Security, Medicare, and maternity benefits
7. Money claims arising out of employer-employee
relationship or by virtue of any law or contract,
involving
Filipino
workers
for
overseas
deployment, including claims for actual, moral,
exemplary, and other forms of damages
8. Wage
distortion
disputes
in
unorganized
establishments not voluntarily settled by the
parties in pursuant to Art. 124
9. Enforcement of compromise agreements when
there is non-compliance by any of the parties,
pursuant to Art. 233
10. Other cases as may be provided by law
Although the first 6 cases fall under the original
and exclusive jurisdiction of labor arbiters, these
cases can by agreement of the parties, be
presented to and decided with finality by a
voluntary arbitrator or panel of voluntary
arbitrators
The law prefers or gives primacy to
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Labor Relations
Ateneo de Davao University
Based on the Book of Azucena and the lectures of Fr. Nazareno

voluntary arbitration instead of compulsory


arbitration
This is the reason the law forbids a labor
arbiter from entertaining a dispute properly
belonging to the jurisdiction of a voluntary
arbitrator
The cases a labor arbiter (LA) can hear and decide
are employment-related
Employment connection is the one unifying
element running through all the cases and
disputes enumerated in Article 224
Rule as to Jurisdiction of Cases:
1. Labor Arbiter if the principal relief sought will
be resolved by applying the Labor Code or other
labor relations statute or a collective bargaining
agreement (CBA)
2. Regular Courts if the applicable law is the
general civil law, i.e. RTC
Other Cases under the jurisdiction of Labor
Arbiters
1. Unfair Labor Practices (ULP)
2. Gross violation of CBA
3. Termination disputes
a. But the original and exclusive jurisdiction
over grievances arising from interpretation
or enforcement of company personnel
policies belong to voluntary arbitrators
i. Example: If the employee is CBAcovered and terminated for alleged
violation of personnel policy, the
dispute should be heard by a
VOLUNTARY ARBITRATOR
ii. If the CBA or personnel policy is not
involved, the case should be brought
to a LABOR ARBITER
1. But even if not CBA-covered or
even if no personnel policy is
involved, the parties may, in
categorical and unequivocal
language, agree to bring the
cases
to
a
VOLUNTARY
ARBITRATOR
2. This allowed since as a rule,
voluntary
rather
than
compulsory arbitration is the
preferred mode of settling labor
Shelumiel Ryan B. Abapo, CPA
3-Manresa
AdDU College of Law

disputes
3. Even a ULP case can, by
agreement of the parties, be
brought before a voluntary
arbitrator
Corporate Disputes
If the controversy concerns the election or
appointment of directors, trustees, officers, or
managers of corporations, partnerships or
associations, jurisdiction is vested in the
Securities and Exchange Commission (SEC) (1986
SC Ruling)
This is true even though the complaint is
claiming for backwages, employment
benefits, and damages
The SEC jurisdiction over corporate disputes has
been transferred to the regular courts by the
Securities Regulations Code (RA 8799) signed into
law on July 19, 2000
Award of Damages
The legislative intent allow recovery of moral and
other forms of damages in all cases arising from
employer-employee relations
The Labor Arbiter may award to the dismissed
employee not only the reliefs provided by the
labor laws, but also the moral and other forms of
damages governed by the Civil Code
Moral Damages would be recoverable not only
where the dismissal was without authorized cause
or due process but also
Was attended by bad faith or fraud;
Constituted an act oppressive to labor; or
Was done in a manner contrary to morals,
good customs, or public policy
Also under the jurisdiction of the LA is an
employers claim for actual damages
against an employee
Since it arises from employer-employee
relationship;
and necessarily connected with the dispute
over the employees dismissal, should be
entered as a counterclaim in the illegal
dismissal case
The employers claim cannot be filed with a
regular court
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Labor Relations
Ateneo de Davao University
Based on the Book of Azucena and the lectures of Fr. Nazareno

Issuance of Injunction
Questions as to the legality of strikes or lockouts
or any form of work stoppage, including their
incidents fall within the labor arbiters jurisdiction
But the authority of the LA to issue injunctions as
ancillary remedy has been deleted by the NLRC
Rules of Procedure
Overseas Worker
RA 8042 has transferred from POEA to the Labor
Arbiters the jurisdiction over claims arising from
employer-employee
relationship
involving
Filipinos working overseas.
Claims may include termination dispute
involving OFW who worked and was
dismissed by the employer abroad
Venue
All cases which the Las have authority to hear and
decide may be filed in the Regional Arbitration
Branch (RAB) having jurisdiction over the
workplace of the complainant/petitioner
For overseas Filipino workers, the case shall be
filed before the RAB where the complainant
resides or where the principal office of the
respondents/employer is situated, at the option of
the complainant
Powers of the NLRC (Article 225)
1. To promulgate rules and regulations governing the
hearing and disposition of cases before it (NLRC)
and its regional branches, as well as those
pertaining to its internal functions and rules and
regulations as may be necessary to carry out the
purpose of the Labor Code
2. To administer oaths, summon the parties to a
controversy, issue subpoenas requiring the
attendance and testimony of witnesses or the
production of such books, papers, contracts,
records, statement of accounts, agreements, and
others as may be material to a just determination
of the matter under investigation, and to testify in
any investigation or hearing conducted in
pursuance of the Labor Code
3. To conduct investigation for the determination of
a question, matter, or controversy within its
jurisdiction, proceed to hear and determine the
Shelumiel Ryan B. Abapo, CPA
3-Manresa
AdDU College of Law

disputes in the absence of any party thereto who


has been summoned or served with notice to
appear, conduct its proceedings or any part
thereof in public or in private, adjourn its hearings
to any time and place, refer technical matters or
accounts to an expert and to accept his report as
evidence after hearing of the parties upon due
notice, direct parties to be joined in or excluded
from the proceedings, correct, amend, or waive
any error, defect, or irregularity whether in
substance or in form, give all such direction as it
may deem necessary or expedient in the
determination of the dispute before it, and
dismiss any matter or refrain from further hearing
or from determining the dispute or part thereof,
where it is trivial or where further proceedings by
the NLRC are not necessary or desirable; and
4. To hold any person in contempt directly or
indirectly and impose appropriate penalties
thereof in accordance with law
1. A person guilty of misbehavior in the
presence of or so near the Chairman or any
member of the NLRC or any Labor Arbiter as
to obstruct or interrupt the proceedings;
2. Including disrespect toward the said
officials,
3. Offensive personalities toward others; or
4. Refusal to be sworn or to answer as a
witness or to subscribe an affidavit or
deposition when lawfully required to do so
May be summarily adjudged in direct
contempt and punished by a fine not
exceeding P100 or imprisonment not
exceeding 1 day, or both if it be a Labor
Arbiter
The direct contempt judgment may be
appealed to the Commission and the
execution shall be suspended pending the
resolution of the appeal upon filing of such
person a bond on a condition that he will
abide by and perform the judgment of the
NLRC should the appeal be decided against
him
Judgment of the NLRC on direct contempt is
immediately executor and unappealable
5. To enjoin or restrain any actual or threatened
commission of any or all prohibited or unlawful
acts or to require the performance of a particular
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Labor Relations
Ateneo de Davao University
Based on the Book of Azucena and the lectures of Fr. Nazareno

act in any labor dispute which, if not restrained or


performed forthwith, may cause in favor of such
party Provided, That no temporary or permanent
injunction in any case involving or growing out of
a labor dispute as defined in this Code shall be
issued except after hearing the testimony of
witnesses,
with
opportunity
for
crossexamination, in support of the allegations of a
complaint made under oath, and testimony in
opposition thereto, if offered, and only after a
finding of fact by the Commission, to the effect:
1. That prohibited or unlawful acts have been
threatened and will be committed and will
be continued unless restrained, but no
injunction or temporary restraining order
shall be issued on account of any threat,
prohibited or unlawful act, except against
the person or persons, association or
organization
making
the
threat
or
committing the prohibited or unlawful act or
actually authorizing or ratifying the same
after actual knowledge thereof;
2. That substantial and irreparable injury to
complainants property will follow;
3. That as to each item of relief to be granted,
greater injury will be inflicted upon
complainant by the denial of relief than will
be inflicted upon defendants by the
granting of relief;
4. That complainant has no adequate remedy
at law; and
5. That the public officers charged with the
duty to protect complainants property are
unable or unwilling to furnish adequate
protection.
Note: The reception of evidence for the application of a
writ of injunction may be delegated by the Commission
to any of its Labor Arbiters who shall conduct such
hearings in such places as he may determine to be
accessible to the parties and their witnesses and shall
submit thereafter his recommendation to the NLRC.
Ocular Inspection (Article 226)
The Commission (NLRC), any Commissioner,
Labor
Arbiter,
or
their
duly
authorized
representative, may at anytime during working
hours, conduct an ocular inspection on any
Shelumiel Ryan B. Abapo, CPA
3-Manresa
AdDU College of Law

establishment or premises, and ask any


employee, laborer, or any person as the case may
be for any information or data concerning any
matter relative to the object of investigation
Power of the NLRC (Summary)
1. To make rules and regulations pertaining to its
functions;
2. To administer oaths and issue subpoenas and
summons;
3. To investigate, hear, and decide disputes within
its jurisdiction;
4. To hold persons in contempt;
5. To issue restraining orders and injunctions;
6. To conduct ocular inspection; and
7. To decide appealed cases
Rules of Procedure
The hearing and dispositions of cases by the NLRC
Divisions and Labor Arbiters are governed by
Rules of Procedure that the NLRC itself devises
and promulgates
The most recent is the 2011 NLRC Rules of
Procedure promulgated on May 31, 2011
Suppletory Rules
In absence of specific provisions in the NLRC Rules
or in laws like the Labor Code and its
implementing rules, the provisions of the Rules of
Court shall be applied in suppletory character
Injunctive Power
Writ of Injunction a person to do or not to do a
particular act
Article 225(e) gives exclusive and original
jurisdiction to the NLRC to hear and resolve
petitions for injunction
But injunctions or restraining orders are frowned
upon as a matter of labor relations policy. Thus,
Article 225(e) prescribes strict procedure and
requisites that must be satisfied before an
injunctive writ may issue
Where the NLRC did not follow and observe the
procedure in issuing the injunction, the writ is
illegal and void, even though the court had
jurisdiction to issue it
The issuance of temporary restraining order (TRO)
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Labor Relations
Ateneo de Davao University
Based on the Book of Azucena and the lectures of Fr. Nazareno

ex parte is not per se prohibited, but its issuance


should be characterized by care and caution
Labor Organizations
Art. 239. Requirements of registration. Any
applicant labor organization, association or group of
unions or workers shall acquire legal personality and
shall be entitled to the rights and privileges granted by
law to legitimate labor organizations upon issuance of
the certificate of registration based on the following
requirements.
a. Fifty pesos (P50.00) registration fee;
b. The names of its officers, their addresses, the
principal address of the labor organization, the minutes
of the organizational meetings and the list of the
workers who participated in such meetings;
c. The names of all its members comprising at least
twenty percent (20%) of all the employees in the
bargaining unit where it seeks to operate; (As amended
by Executive Order No. 111, December 24, 1986)
d. If the applicant union has been in existence for one
or more years, copies of its annual financial reports;
and
e. Four (4) copies of the constitution and by-laws of the
applicant union, minutes of its adoption or ratification,
and the list of the members who participated in it. (As
amended by Batas Pambansa Bilang 130, August 21,
1981)
Note: The 20% initial membership is required only if the
applicant is an independent union, not a chapter
created by a federation.
ART. 240. Chartering and Creation of a Local
Chapter. A duly registered federation or national
union may directly create a local chapter by issuing a
charter certificate indicating the establishment of the
local chapter. The chapter shall acquire legal
personality only for purposes of filing a petition for
certification election from the date it was issued a
charter certificate.
The chapter shall be entitled to all other rights and
privileges of a legitimate labor organization only upon
the submission of the following documents in addition
to its charter certificate:
Shelumiel Ryan B. Abapo, CPA
3-Manresa
AdDU College of Law

(a) The names of the chapters officers, their addresses,


and the principal office of the chapter; and
(b) The chapters constitution and by-laws: Provided,
That where the chapters constitution and by-laws are
the same as that of the federation or the national
union, this fact shall be indicated accordingly.
The additional supporting requirements shall be
certified under oath by the secretary or treasurer of the
chapter and attested by its president.
The workers right to self-organization is guaranteed
under the Constitution and the Labor Code.

Every employee, even temporary ones, except as


provided in Art. 256, is eligible for union
membership beginning on the employees first
day of work.

Labor Organization means any union or association


of employees in the private sector which exists in whole
or in part for the purpose of collective bargaining or for
dealing with empoyers concerning terms and conditions
of employment

The existence of employer-employee relationship


is essential for the exercise of the right of selforganization for purposes of collective bargaining.
Absence of such relationship affects the legality
of the union itself

Legitimate Labor Organization any labor


organization in the private sector registered or reported
with the DOLE in accordance with that provided in the
Labor Code, and includes any branch or local thereof
Workers Association an association of workers
organized for the mutual aid and protection of its
members or for any legitimate purpose other than
collective bargaining
Legitimate Workers Association any workers
association which is duly registered with the DOLE
Chartered Local a labor organization that acquired
legal personality through the issuance of a charter
8

Labor Relations
Ateneo de Davao University
Based on the Book of Azucena and the lectures of Fr. Nazareno

certificate by a duly registered federation or national


union, and reported to the Regional Office in
accordance with Rule III, Section 2-E of the Rules

with legal personality to deal with the


employer in representation of its members

Non-registration does not make a labor


organization illegitimate or illegal since
freedom of association is constitutionally
guaranteed

But an unregistered labor organization does


not possess the rights mentioned in Article
250

Independent Union refers to the creation or


formation of new union arising from the unification of
two or more unions
Affiliate refers to an independent union affiliated with
a federation or national union or a chartered local which
was subsequently granted independent registration but
did not disaffiliate from its federation, reported to the
Regional Office, and the Bureau in accordance with Rule
III, Sections 6 and 7 of the Rules
Merger the process where a local organization
absorbs another
Union any labor organization in the private sector
organized for collective bargaining and for other
legitimate purposes
Independent union a labor organization operating
at the enterprise level that acquired legal personality
through independent registration
National Union or Federation a group of legitimate
labor unions in a private establishment organized for
collective bargaining or for dealing with employers
concerning the terms and conditions of employment for
their member union or for participating in the
formulation of policies and standards, and programs,
registered with the Bureau of Labor Relations
Consolidation the creation or formation of a new
union arising from the unification of 2 or more unions

Not every labor organization is a union


Workers association is NOT a union

Not every union is a legitimate labor organization


(LLO)

It is the fact of being registered with the


DOLE that makes a labor organization
legitimate in the sense that it is clothed

Shelumiel Ryan B. Abapo, CPA


3-Manresa
AdDU College of Law

Art. 250. Rights of legitimate labor organizations.


A legitimate labor organization shall have the right:
a. To act as the representative of its members for the
purpose of collective bargaining;
b. To be certified as the exclusive representative of all
the employees in an appropriate bargaining unit for
purposes of collective bargaining;
c. To be furnished by the employer, upon written
request, with its annual audited financial statements,
including the balance sheet and the profit and loss
statement, within thirty (30) calendar days from the
date of receipt of the request, after the union has been
duly recognized by the employer or certified as the sole
and exclusive bargaining representative of the
employees in the bargaining unit, or within sixty (60)
calendar days before the expiration of the existing
collective bargaining agreement, or during the
collective bargaining negotiation;
d. To own property, real or personal, for the use and
benefit of the labor organization and its members;
e. To sue and be sued in its registered name; and
f. To undertake all other activities designed to benefit
the
organization
and
its
members,
including
cooperative, housing, welfare and other projects not
contrary to law.
Notwithstanding any provision of a general or special
law to the contrary, the income and the properties of
legitimate labor organizations, including grants,
endowments, gifts, donations and contributions they
may receive from fraternal and similar organizations,
local or foreign, which are actually, 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 by
9

Labor Relations
Ateneo de Davao University
Based on the Book of Azucena and the lectures of Fr. Nazareno

a special law expressly repealing this provision. (As


amended by Section 17, Republic Act No. 6715, March
21, 1989)
Creation and Registration Methods
Article 239 specifies 5 Requirements for issuance
of the certificate of registration of an applicant
labor organization, association, or group of unions
The Implementing Rules, as modified by D.O. No.
40-03,
segregate
the
requirements
for
independent union, local/chapter, federation or
national union, and workers association
A union at the enterprise level may be created
either by
Independent registration
Is obtained by the union organizers in
an enterprise through their own
action instead of through issuance of
a charter by a federation or national
union
The union created and registered has
a legal personality of its own and is
called independent union
Chartering
Takes place when a duly registered
federation or national union issues a
charter to a union in an enterprise
and registered the charter with the
Regional Office or the Bureau of Labor
Relations
The union recipient of the charter is
called a chapter, local or chartered
local.
It has no legal personality of its own
as long as it has not availed itself of
independent registration
The charter certificate issued by a
federation or national union, together
with
supporting
documents
evidencing the establishment of such
local/chapter, is filed with the DOLE
regional office
Applications for registration of independent
unions,
charter
locals
and
workers
association are filed with the Labor Relations
Division of the DOLE Regional Office where the
applicant union principally operates
Shelumiel Ryan B. Abapo, CPA
3-Manresa
AdDU College of Law

Denial of registration by the DOLE Regional


Director is appealable to the BLR Director
and from there to the Court of Appeals
Applications for federations and national
unions, though received at the regional offices,
are filed with and processed by the national office
of the Bureau of Labor Relations itself because
they operate in more than 1 region
Denial of application filed by the BLR is
appealable to the DOLE Secretary and from
there to the CA if certiorari is justifiable

Requirements for Registration


A. Independent Labor Organization (RNMNAC)
a. Registration Fee
b. Name of the applicant union, its principal address,
names and addresses of its officers, approximate
number of employees in the bargaining unit
where it seeks to operate, with a statement that it
is not reported as a chartered local of any
federation or national union
c. Minutes of the organizational meeting; list of
workers who participated in the meetings
d. Names of all its members comprising at least 20%
of all the employees in the bargaining unit
e. Annual financial report if the applicant has been
in existence for 1 or more years, unless it has not
collected any amount from the member, in which
case a statement to this effect shall be included
f. Constitution and by-laws (CBL) minutes of its
adoption and ratification, and the list of the
members who participated in it; (list of ratifying
members may be dispensed with where the CBL
was ratified or adopted during the organization
meeting --- factual circumstance of the ratification
shall be recorded in the meeting
All required documents shall be certified under
oath by the Secretary or Treasurer and attested
by the President
1 original copy and 2 duplicates copies of all
documents accompanying the application or
notice shall be submitted to the Regional Office or
the Bureau
B. Federation/National Union
In addition to a, b, c, e, and f of the requirement for
Independent union:
a. Resolution of affiliation of at least 10 LLOs
whether independent or chartered locals (all duly
10

Labor Relations
Ateneo de Davao University
Based on the Book of Azucena and the lectures of Fr. Nazareno

recognized collective bargaining agents)


b. Names and addresses of the companies where
the affiliates operate plus list all members in each
company involved
Labor organizations operating within an identified
industry may also apply for registration as a
federation or national union within the specified
industry by submitting to the Bureau the same
set of documents
C. Workers Association (RNMFC)
a. Registration Fee
b. Name of the applicant association, its principal
address, the name of its officers and their
respective addresses
c. Minutes of the organizational meetings, and
names of individual members who attended such
meetings
d. Financial reports of the applicant association if it
has been in existence for one or more years,
unless it has not collected any amount from the
members, in which case a statement to this effect
shall be included in the application
e. Constitution and By-laws (CBL) with names of
ratifying members, the minutes of adoption or
ratification of the CBL, and the date when
ratification was made, unless ratification was
done in the meeting, in which case such fact shall
be reflected in the minutes
Application for registration of a workers
association operating in more than 1 region shall
be accompanied, in addition to the requirements
in the preceding subsection by a resolution of
membership of each member
D. Chartered Local
a. A charter certificate issued by the federation or
national union indicating the creation or
establishment of the local/chapter;
b. The names of the local/chapters officers, their
addresses, and the principal office of the
local/chapter; and
c. The local/chapters constitution and by-laws
(CBL), provided that where the local/chapters
CBL is the same as that of the federation or
national union, this fact shall be indicated
accordingly
Must Submit 2 copies
Certified under oath by the Secretary or the
Treasurer of the local/chapter and attested by its
Shelumiel Ryan B. Abapo, CPA
3-Manresa
AdDU College of Law

President
Requirements
in
case
of
Merger/Consolidation/Affiliation
1. Affiliation
A. Affiliation
a. Where to File
i. Report of affiliation shall be filed with
the Regional Office which issued its
certificate od registration
b. Requirements
i. Resolution of the labor unions board
of directors approving the affiliation
ii. Minutes of the general membership
meeting approving the affiliation
iii. Total number of members and names
of members who approved the
affiliation
iv. Certificate of affiliation issued by the
federation
in
favor
of
the
independently registered labor union
v. Written notice to the employer
concerned if the affiliation union is
the incumbent bargaining agent
B. Merger
a. Where to File
i. Notice of merger of the independent
labor unions, chartered locals, and
workers association shall be filed
with the Regional Office that issued
the certificate of registration
ii. Notice of merger of federation shall
be filed and recorded with the Bureau
b. Requirements
i. Minutes of merger convention or
general membership meetings of all
the merging labor organizations with
the list of their respective members
who approved the same
ii. Amended constitution and by-laws
and minutes of its ratification, unless
transpired in the convention, which
fact shall be indicated
C. Consolidation
a. Where to File
i. Notice of consolidation of the
independent labor unions, chartered
locals, and workers association shall
11

Labor Relations
Ateneo de Davao University
Based on the Book of Azucena and the lectures of Fr. Nazareno

be filed with the Regional Office that


issued the certificate of registration of
consolidation of federation shall be
filed
ii. Notice recorded with the Bureau
b. Requirements
i. Minutes of consolidation convention
of
all
consolidating
labor
organizations, with the list of their
respective members who approved
the same
ii. Amended constitution and by-laws,
minutes of its ratification transpired in
the consolidation convention or in the
same general membership meetings,
which
fact
shall
be
indicated
accordingly

Shelumiel Ryan B. Abapo, CPA


3-Manresa
AdDU College of Law

12