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UST GOLDEN NOTES 2011

G.LABORRELATIONSLAW 4. Members of the AFP including the police


officers, policemen, firemen, and jail
1.RIGHTTOSELFORGANIZATION guards.(Sec.4,E.O.180)
5. Confidential Employees. (Metrolab
a.Whomayunionizeforpurposesofcollective Industries Inc. v. Confesor, G.R. No.
bargaining 108855,Feb.28,1996)
6. Employees of cooperatives who are its
Q: What is the extent of the right to self members.(BenguetElec.Coop.v.Ferrer
organization? Calleja, G.R. No. 79025, Dec. 29, 1989);
However they may form workers
A:Itincludestheright: association. (NEECO Ees Assoc. v. NLRC,
G.R.No.16066,Jan.24,2000)
1. To form, join and assist labor 7. NonEes.(RosarioBros.v.Ople,G.R.No.
organizations for the purpose of L5390,July31,1984)
collective bargaining (CB) through 8. GovtEes,includingGOCCswithoriginal
representatives of their own charters.(Arizalav.CA,G.R.Nos.43633
choosing;and 34,Sep.14,1990)
2. To engage in lawful and concerted 9. Aliens without a valid working permit or
activitiesforthepurposeofCBorfor aliens with working permits but are
theirmutualaidandprotection.(Art. nationalsofacountrywhichdonotallow
246) Filipinos to exercise their right of self
organization and to join or assist labor
Q: Who are the persons/Ees eligible to join a organizations.(Art.269ofLC;D.O.No.9
labororganization(LO)forpurposesofCB? [1997],RuleII,Sec.2)

A:Theentitiescoveredareallpersonsemployedin: b.BargainingUnit
1. Commercial industrial, and agricultural
enterprises;and Q:Whatisabargainingunit?
2. In religious, charitable, medical or
educational institutions whether A:ItisagroupofEesofagivenEr,comprisedofall
operatingforprofitornot.(Art.243) orlessthanalloftheentirebodyoftheEeswhich
thecollectiveinterestofalltheEesconsistentwith
Q: Who are the persons/Ees eligible to join a equitytotheemployer,indicatetobebestsuitedto
labororganizationformutualaidandprotection? servethereciprocalrightsanddutiesoftheparties
under the collective bargaining provisions of the
A:Thefollowingenjoytherighttoselforganization law.
formutualaidandprotection:
Q:Whatisanappropriatebargainingunit?
1. Ambulantworkers
2. Intermittentworkers A: 1.Agroupofemployees(Ees)
3. Itinerantworkers 2. Ofagivenemployer
4. Selfemployedpeople 3. Comprised of all or less than all of the
5. Ruralworkers entirebodyofEes
6. Those without and definite Ers. (Art. 4. WhichthecollectiveinterestofalltheEes
243) consistentwithequitytotheEr
5. Indicate to be best suited to serve the
Q:Whoarethepersons/Eesnotgrantedtheright reciprocalrightsanddutiesoftheparties
toselforganization: underthecollectivebargainingprovisions
ofthelaw.
A:
1. High level or Managerial Government (1)Testtodeterminetheconstituencyofan
Ees.(Sec.3,E.O.180) appropriatebargainingunit
2. Ees of International organizations with
immunities. (ICMC v. Calleja, G.R. No. Q:Whatarethefactorsconsideredindetermining
85750,Sep.28,1990) theappropriatenessofabargainingunit?
3. ManagerialEmployees.(Art.212ofLC)
A:
1. WilloftheEes.(GlobeDoctrine)

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LABOR RELATIONS LAW

2. AffinityandunityoftheEesinterest,such A:No.Whiletheexistenceofabargaininghistoryis
as substantial similarity of work and afactorthatmaybereckonedwithindetermining
duties, or similarity of compensation and the appropriate bargaining unit, the same is not
working conditions. (Substantial Mutual decisive or conclusive. Other factors must be
InterestRule) considered. The test of grouping is community or
3. Priorcollectivebargaininghistory mutuality of interests. This is so because the basic
4. Similarityofemploymentstatus.(SMCv. testofanassertedbargainingunitsacceptabilityis
Laguesma, G.R. No. 100485, Sep. 21, whetherornotitisfundamentallythecombination
1994) whichwillbestassuretoallEestheexerciseoftheir
CB rights. (Democratic Labor Assn v. Cebu
Q:Whatarethefactorsconsideredindetermining Stevedoring Company, Inc., G.R. No. L10321, Feb.
thesubstantialmutualinterestdoctrine? 28,1958)

A: 1. Similarity in the scale and manner of Q:Whatisoneunion,onecompanypolicy?
determiningearnings
2. Similarity in employment benefits, hours A:GR:ItistheproliferationofunionsinanErunit.
of work, and other terms and conditions Suchisdiscouragedasamatterofpolicyunless
ofemployment therearecompellingreasonswhichwoulddeny
3. Similarityinthekindsofworkperformed a certain class of Ees to the right to self
4. Similarity in the qualifications, skills and organization for purposes of collective
trainingofEes bargaining(CB).
5. Frequency of contract or interchange
amongtheEes XPNs:
6. Geographicalproximity 1. SupervisoryEeswhoareallowedtoform
7. Continuity and integration of production their own unions apart from the rank
processes andfileEesand
8. Common supervision and determination 2. ThepolicyshouldyieldtotherightofEes
oflaborrelationspolicy to form union for purposes not contrary
9. HistoryofCB tolaw,selforganizationandtoenterinto
10. DesiresoftheaffectedEesor CBnegotiations.
11. Extentofunionorganization
Note: Two companies cannot be treated into a single
Q:AregisteredlaborunioninUP,ONAPUP,fileda bargaininguniteveniftheirbusinessesarerelated.
petitionforcertificationelection(PCE)amongthe
Subsidiaries or corporations formed out of former
nonacademicEes.Theuniversitydidnotoppose,
divisions of a mother company following a re
however,anotherlaborunion,theAllUPWorkers
organization may constitute a separate bargaining
Union assents that it represents both academic
unit.
andnonacademicpersonnelandseekstouniteall

workers in 1 union. Do Ees performing academic
Q:UnionfiledaPCEamongtherankandfileEes
functions need to comprise a bargaining unit
of three security agencies including the Veterans
distinctfromthatofthenonacademicEes?
Security.Thelatteropposedallegingthatthethree
security agencies have separate and distinct
A: Yes. The mutuality of interest test should be
corporatepersonalities.MayasinglePCEfiledbya
takenintoconsideration.Therearetwoclassesof
labor union in the three corporations instead of
rankandfileEesintheuniversitythatis,thosewho
filing3separatepetitions?
performacademicfunctionssuchastheprofessors
andinstructors,andthosewhosefunctionarenon
A: Yes. The following are indications that the 3
academic who are the janitors, messengers, clerks
agencies do not exist and operate separately and
etc.Thus,notmuchreflectionisneededtoperceive
distinctly from each other with different corporate
that the mutuality of interest which justifies the
direction and goals: 1) Veterans Security failed to
formation of a single bargaining unit is lacking
rebut the fact that they are managed through the
between the two classes of Ees. (U.P. v. Ferrer
Utilities Management Corp with all their Ees
Calleja,G.R.No.96189,July14,1992)
drawing their salaries and wages from the said
entity; 2) that the agencies have common and
Q:Isthebargaininghistoryadecisivefactorinthe
interlockingincorporatorsandofficers;3)thatthey
determination of appropriateness of bargaining
haveasinglemutualbenefitsystemandfolloweda
unit?
single system of compulsory retirement. 4) they
could easily transfer security guards of one agency

129
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UST GOLDEN NOTES 2011

to another and back again by simply fillingup a through the Labor Relations Division shall, within 10
common proforma slip; 5) they always hold joint daysfromreceiptofthenotice,recordthefactofVRin
yearly ceremonies such as the PGA Annual Awards its roster of legitimate labor unions and notify the
Ceremony;and6)theycontinuetoberepresented laborunionconcerned.
byonecounsel.
Q:Whatarethethree(3)conditionstovoluntary
Hence, the veil of corporate fiction of the 3 recognition(VR)?
agencies should be lifted for the purpose of
allowing the Ees of the 3 agencies to form single A:VRrequires3concurrentconditions:
union.Asasinglebargainingunit,theEesneednot
file 3 separate PCE. (Philippine Scout Veterans 1. VR is possible only in an unorganized
Security and Investigation Agency v. SLE, G.R. No. establishment.
92357,July21,1993)
2. Onlyoneunionmustaskforrecognition.If
(2)VoluntaryRecognition there 2 or more unions asking to be
recognized, the Er cannot recognize any
Q: What are the 3 methods of determining the of them; the rivalry must be resolved
bargainingrepresentative? throughanelection.

A:
1. Voluntaryrecognition
2. Certificationelectionwithorwithoutrun 3. The union voluntarily recognized should
off bethemajorityunionasindicatedbythe
3. Consentelection fact that members of the bargaining unit
did not object to the projected
Q:Whatisvoluntaryrecognition(VR)? recognition. If no objection is raised, the
recognitionwillproceed,theDOLEwillbe
A:Theprocessbywhichalegitimatelaborunionis informed and CBA recognition will
recognized by the employer (Er) as the exclusive commence. If objection is raised, the
bargaining representative or agent in a bargaining recognition is barred and a certification
unit, reported with the Regional Office. (Sec. 1 election or consent election will have to
[bbb],RuleI,BookV,IRR) takeplace.

Q:WhataretherequirementsforVR? Note: In an organized establishment, voluntary
recognitionisnotpossible.ApetitiontoholdaCEhas
A: The notice of VR shall be accompanied by the tobefiledwithinthefreedomperiodwhichmeansthe
originalcopyand2duplicatecopiesofthefollowing last 60 days of the 5th year of the expiring CBA. The
reqts: petition may be filed by any Legitimate Labor
Organization(LLO),butthepetitionmusthavewritten
1. JointstatementunderoathofVR support of at least 25% of the Ees in the bargaining
unit.
2. Certificate of posting of joint statement
for 15 consecutive days in at least 2 Q:WhereandwhentofilethepetitionforVR?
conspicuous places in the establishment
ofthebargainingunit A: Within 30 days from such recognition, Er shall
submit a notice of VR with the Regional Office
3. Certificateofposting which issued the recognized labor unions
certificate of registration or certificate of creation
4. Approximate number of Ees in the ofacharteredlocal.
bargaining unit and the names of those
whosupportedtherecognition Q: What are the effects of recording of fact of
voluntaryrecognition(VR)?
5. Statementthatthelaborunionistheonly
A:
LLOoperatingwithinthebargainingunit.
1. The recognized labor union shall enjoy

Note: Where the notice of voluntary recognition is
therights,privilegesandobligationsofan
sufficient in form, number and substance and where existing bargaining agent of all the
thereisnoregisteredlaborunionoperatingwithinthe employees(Ees)inthebargainingunit.
bargaining unit concerned, the Regional Office, 2. Itshallalsobarthefilingofapetitionfor
certification election by any labor

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LABOR RELATIONS LAW

organization for a period of 1 year from Note:SomeoftheEesmaynotwanttohaveaunion;


thedateofentryofVR. hence,nounionisoneofthechoicesnamedinthe
ballot. If no union wins, the company or the
(3)CertificationElection bargaining unit remains ununionized for at least 12
months, the period is known as 12month bar. After
Q:Whatiscertificationelection(CE)? thatperiod,apetitionforaCEmaybefiledagain.

A: It is the process of determining through secret Q:Distinguishtherequisitesforapetitionfor


ballot the sole and exclusive representative of the certificationelectionbetweenanorganizedandan
Eesinanappropriatebargainingunit,forpurposes unorganizedestablishment.
ofCBornegotiation.(Sec.1[h],RuleI,BookV,IRR)
A:
Note:TheprocessiscalledCEbecauseitservesasthe Art.256.ORGANIZED Art.257.UNORGANIZED
official, reliable and democratic basis for the BLR to Bargainingagent
determine and certify the union that shall be the Present None
exclusive bargaining representative of the Ees for the Petitionfiled
purposeofbargainingwiththeEr. Hastobeaverified
Noneedtobeverified
petition
Q:Whatisthenatureofcertificationelection? FreedomPeriod
NopetitionforCEexcept
Notapplicable.No
A: A certification election is not a litigation but within60daysbeforethe
freedomperiod.Petition
merely an investigation of a nonadversarial fact expirationoftheCBA.
canbefiledanytime.
finding character in which BLR plays a part of a (SeeArt.253&253A)
disinterested investigator seeking merely to Substantialsupportrule
ascertain the desire of the employees as to the Mustbedulysupported
Nosubstantialsupport
matter of their representation. (Airline Pilots Assn by25%ofallthe
rule.
membersofthe
ofthePhilippinesv.CIR,G.R.No.L33705,April15,
appropriatebargaining
1977) Why?Intentionoflawis
unit(ABU).
tobringintheunion,to

Q:Whatisthepurposeofacertificationelection? implementpolicybehind
Percentagebase:all
Art.211(a).
membersofanABU.
A:Itisameansofdeterminingtheworkerschoice
of: Note: The approval of the PCE in an unorganized
bargainingunitisNEVERappealable,thereasonbeing
1. Whether they want a union to represent thatthelawwantstheununionizedtobeunionized.
them for collective bargaining or if they
wantnouniontorepresentthematall. Q:Should the consent signatures of at least 25%
2. And if they choose to have a union to of the Ees in the bargaining unit be submitted
represent them, they will choose which simultaneously with the filing of the petition for
among the contending unionswill be the certificationelection(PCE)?
sole and exclusive bargaining
representative of the employees in the A: No, the administrative rule requiring the
appropriatebargainingunit. simultaneous submission of the 25% consent
signatures upon the filing of PCE should not be
Q:Whataretheissuesinvolvedinacertification strictlyappliedtofrustratethedeterminationofthe
proceeding? legitimate representative of the workers.
Accordingly,theCourtheldthatthemerefilingofa
A: Certification proceedings directly involve two PCEwithinthefreedomperiodissufficientbasisfor
issues: the issuance of an order for the holding of a CE,
subjecttothesubmissionoftheconsentsignatures
1. Proper composition and constituency of within a reasonable period from such filing. (Port
thebargainingunit;and WorkersUnion ofthePhils.v.Laguesma,G.R.Nos.
2. The veracity of majority membership 9492930,Mar.18,1992)
claims of the competing unions so as to
identity the one union that will serve as Q: Who may file a petition for certification
the bargaining representative of the election(PCE)?
entirebargainingunit.
A:
1. Anylegitimatelabororganization(LLO)

131
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UST GOLDEN NOTES 2011

2. A national union or federation which has bylaws


already issued a charter certificate to its AllEeswhetherunionor
localchapterparticipatingintheCE Righttovoteisenjoyed nonunionmemberswho
3. A local chapter which has been issued a onlybyunionmembers belongtotheappropriate
chartercertificate bargainingunitcanvote
4. An Er only when requested to bargain ThewinnerinaCEisan
collectivelyinabargainingunitwhereno entity,aunion,which
registered CBA exists. (Sec. 1, Rule VIII, Winnersofunionelection becomesthe
BookV,IRRasamendedbyD.O.40F03) becomeofficersand representativeofthe
representativesofthe wholebargainingunit

uniononly thatincludeseventhe
Note:Anationalunionorfederationfilingapetitionin
membersofthedefeated
behalf of its local/chapter shall not be required to
unions.
disclose the names of the local/chapters officers and
members, but shall attach to the petition the charter
certificate it issued to its local/chapter. (Sec. 1, Rule Note: Both in CE and union election, the prescribed
VIII,BookV,IRRasamendedbyD.O.40F03) proceduresshouldbefollowed.

Q:Mayanemployeeinterveneinthepetitionfor Q:Cana"nounion"wininacertificationElection
(CE)?
certificationelection(PCE)?

A:Yes.BecausetheobjectiveinaCEistoascertain
A: Yes, for the purpose of protecting his individual
the majority representation of the bargaining
right.(Sec.1,RuleVIII,BookV,IRRasamendedby
representative,iftheEesdesiretoberepresented
D.O.4003)
at all by anyone. Hence, no union is one of the

choicesinaCE.(2006BarQuestion)
Q:WhereisPCEfiled?
AlternativeAnswer:
A: It shall be filed with the Regional Office which
issued the petitioning union's certificate of No.AnounioncannotwininaCE.Thepurposeofa
registration/certificate of creation of chartered CE is to select an excusive bargaining agent and a
local.(ImplementingRules,asamendedbyD.O.40 nounionvotewouldpreciselymeanthatthevoter
03) isnotchoosinganyofthecontendingunions.Ifthe
nounion votes constitute a majority of the valid
Q:WhoshallhearandresolvethePCE? votescast,thisfactwillall themoremeanthatno
union won in CE. A oneyear bar will consequently
A:TheMediatorArbiter. stop the holding of another CE to allow the Er to
enjoyindustrialpeaceforatleastoneyear.
Q:WhentofilePCE?
Q: In what instance may a PCE be filed outside
A: The proper time to file the PCE depends on the freedom period of acurrentCBA?
whethertheCertifiedBargainingUnithasaCBAor
not: A: As a general rule, in an establishment where
there is a CBA in force and effect, a PCE may be
1. IfithasnoCBA,thepetitionmaybefiled filed only during the freedomperiod of such CBA.
anytime outside the 12month bar But to have that effect, the CBA should have been
(certificationyear). filedandregisteredwiththeDOLE.(Art.231,253A
2. IfithasCBA,itcanbefiledonlywithinthe and256,LC).(1997BarQuestion)
th
last60daysofthe5 yearoftheCBA.
Thus,aCBAthathasnotbeenfiledandregistered
Note: Attheexpirationofthefreedomperiod,theEr with the DOLE cannot be a bar to a CE and such
shall continue to recognize the majority status of the electioncanbeheldoutsidethefreedomperiodof
incumbentbargainingagentwherenoPCEisfiled. suchCBA.

Q: Distinguish union election from certification AlternativeAnswer:


election.
APCEmaybefiledoutsidethefreedomperiodof
A: acurrentCBAifsuchCBAisanewCBAthathas
UNIONELECTION CERTIFICATIONELECTION been prematurely entered into, meaning, it was
Heldpursuanttothe Theprocessisordered entered into before the expiry date of the old
unionsconstitutionand andsupervisedbyDOLE CBA. The filing of the PCE shall be within the

132
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LABOR RELATIONS LAW

freedomperiodoftheoldCBAwhichisoutsidethe A: Yes, it is now wellsettled that Ees who have


freedom period of the new CBA that had been been improperly laid off but who have at present
prematurelyenteredinto. an unabandoned right to or expectation of re
employment,areeligibletovoteinCEs.Thus,and
Q: Are probationary employees (Ees) entitled to to repeat, if the dismissal is under question, as in
voteinaCE?Why? the case now at bar whereby a case of illegal
dismissal and/or ULP was filed,the Ees concerned
A: Yes, in a CE, all rankandfile Ees in the could still qualify to vote in the elections. (Phil.
appropriate bargaining unit (ABU) are entitled to Fruits & Vegetables Industries v. Torres, G.R. No.
vote. This principle is clearly stated inArt.255 of 92391,July3,1992)
the LC which states that the "labor organization
designatedorselectedbythemajorityoftheEesin Q:Isdirectcertification(DC)stillallowed?
such unit shall be the exclusive representative of
the Ees in such unit for the purpose of collective A: No. Even in a case where a union has filed a
bargaining(CB)." petition for CE, the mere fact that there was no
opposition does not warrant a DC. More so in a
CB covers all aspects of the employment relation casewhentherequiredproofisnotpresentedinan
and the resultant CBA negotiated by the certified appropriate proceeding and the basis of the DC is
unionbindsallEesinthebargainingunit.Hence,all the unions selfserving assertion that it enjoysthe
rankandfileEes,probationaryorpermanent,have support of the majority of the Ees, without
a substantial interest in the selection of the subjecting such assertion to the test of competing
bargaining representative. The LC makes no claims. (Samahang Manggagawa sa Permex v.
distinction as to their employment status as basis Secretary,G.R.No.107792,Mar.2,1998)
for eligibility to vote in the petition for CE. The
law refers to "all" the Ees in the bargaining unit. Q:WhatarethegroundsfordenyingthePCE?
All they need to be eligible to vote is to belong
to the "bargaining unit" (AirtimeSpecialists,Inc.v. A:
FerrerCalleja, G.R. No. 8061216, Dec. 29, 1989). 1. Thepetitioningunionorfederationisnot
(1999BarQuestion) listed in the DOLEs registry of legitimate
labor unions or that its registration
Q:Whatisdirectcertification? certificate legal personality has been
revokedorcancelledwithfinality
A: It is the process whereby the MedArbiter 2. Failure of a local chapter or national
directly certifies a labor organization of an union/federation to submit a duly issued
appropriate bargaining unit (ABU) of a company charter certificate upon filing of the
after a showing that such petition is supported by petition
atleastamajorityoftheEesinthebargainingunit. 3. Thepetitionwasfiledbeforeorafterthe
FREEDOM PERIOD of a duly registered
Q: Does the failure of SAMAFIL (an independent CBA; provided that the 60day period
union) to prove its affiliation with NAFLUKMU based on the original CBA shall not be
federation affect its right to file a PCE as an affectedbyanyamendment,extensionor
independentunion? renewaloftheCBA;(contractbarrule)
4. The petition was filed within 1 year from
A:No,asaLLO,ithastherighttofileaPCEonits entry of voluntary recognition or within
own beyond question. Its failure to prove its thesameperiodfromavalidcertification,
affiliation with the NAFLUKMU cannot affect its consentorrunoffelectionandnoappeal
right to file said PCE as an independent union. At ontheresultsofthecertification,consent
the most, its failure will result in an ineffective or runoff election is pending; (12month
affiliationwithNAFLUKMU.Despiteaffiliation,the bar;certificationyearbarrule)
localunionremainsthebasicunitfreetoservethe 5. A duly certified union has commenced
commoninterestofallitsmembersandpursueits and sustainednegotiations with the Er in
own interests independently of the federation. accordancewithArt.250oftheLCwithin
(Samahan ng mga Manggagawa sa Filsystems v. the1yearperiod.(negotiationbarrule)
SLE,G.R.No.128067,June5,1998) 6. There exists a bargaining deadlock which
had been submitted to conciliation or
Q: May illegally dismissed Ees of the company arbitration or had become the subject of
participateinthecertificationelection(CE)? avalidnoticeofstrikeorlockouttowhich
an incumbent or certified bargaining
agentisaparty.(deadlockbarrule)

133
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UST GOLDEN NOTES 2011

7. In case of an organized establishment, ng Manggagawa sa Pacific Plastic vs. Laguesma,


failure to submit the 25% support reqt G.R.No.111245,Jan.31,1997)andthatthelawis
forthefilingofthePCE. indisputablypartialtotheholdingofaCE.(Western
8. Nonappearance of the petitioner for 2 Agusanvs.TrajanoG.R.No.65833,May6,1991)
consecutive scheduled conferences
before the medarbiter despite due At any rate, UNIDAD completed all the reqts for
notice,and union registration on July 14,2001,andlegitimate
9. AbsenceofErEerelationshipbetweenall union status was accorded on July 15, 2000, or at
themembersofthepetitioningunionand least10daysbeforethescheduleddateforholding
the owner of the establishment where theCE.(2001BarQuestion)
theproposedbargainingunitissoughtto
berepresented.(Sec.14[a],RuleVIII,Book Q:Whatismeantbycontractbarrule?
V,IRR,asamendedbyD.O.40F03)
A: Contractbar rule means that while a valid and
Q: What is a prohibited ground for the registeredCBAissubsisting,theBLRisnotallowed
denial/suspension of the petition for certification toholdanelectioncontestingthemajoritystatusof
election? the incumbent union except during the 60day
period immediately prior to its expiration, which
A: The inclusion as union members of Ees outside periodiscalledthefreedomperiod.
the bargaining unit. Said Ees are automatically
deemed removed from the list of membership of Note: Intheabsenceofsuchtimelynoticeorfilingof
saidunions. petition, the contract executed during the automatic
renewalperiodisabartoCE.
Q: Does the filing of a petition to cancel the
There shall be no amendment, alteration, or
petitioners registration cause the suspension or
terminationofanyoftheprovisionsoftheCBAexcept
dismissalofthepetitionforcertificationelection? togivenoticeofonepartysintentiontoamend,alter
and terminate the provisions within the freedom
A:No.ToserveasagroundfordismissalofaPCE, period.
the legal personality of the petitioner should have
beenrevokedorcancelledwithfinality. Q: What are the requirements in order to invoke
thecontractbarrule?
Q: UNIDAD, a labor organization claiming to
represent the majority of the rank and file A:TheexistingCBAmust:
workers of BAGSAK Toyo Manufacturing Corp.
(BMTC), filed a petition for CE during the 1. Beinwritingandsignedbyallcontracting
freedom period obtaining in said corp. parties
Despite the opposition thereto by SIGAW 2. Contain the terms and conditions of
Federation on the ground that UNIDAD was not employment
possessedwithalltheattributesofaduly 3. Cover employees in an appropriate
registeredunion,theMedArbiterissuedanorder bargainingunit
calling for a CE on July 25, 2001. This order was 4. Beforareasonableperiodorduration
promulgated and served on the parties on July 5. Beratified
12, 2001. On July 14, 2001, UNIDAD submitted 6. BeregisteredwiththeBLR;and
and served the required documents for its 7. The violation of the contract bar rule or
registration as an independent union, which the existence of a duly registered CBA
documentswereapprovedbytheDOLEonJuly15, mustbespeciallypleadedasadefense.
2001.
Q:Whatistheeffectofaninvalidorunregistered
During the elections, UNIDAD won over SIGAW. CBA?
SIGAWquestionedUNIDAD'svictoryonthe
ground that UNIDAD was not a duly registered A: There is no bar and therefore a certification
union when it filed the petition for a CE. Shall electionmaybeheld.
SIGAWscaseprosperornot?Why?
Note: Registration of CBA only puts into effect the
A: No, SIGAW's case will not prosper. The contractbarrulebuttheCBAitselfisvalidandbinding
application of technicalities of procedural reqts evenifunregistered.
in CE disputes will serve no lawful objective or
purpose. It is a statutory policy that no obstacles Q: What are the exceptions to the contract bar
shouldbeplacedontheholdingofaCE,(Samahang rule?

134
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MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM

LABOR RELATIONS LAW

A: bargainingwhich,despitenobleintentions,didnot
1. TheCBAisunregistered concludeinanagreementbetweentheparties.
2. TheCBAisinadequateandincomplete
3. The CBA was hastily entered into Q:Whatisdeadlockbarrule?
(Doctrineofprematureextension)
4. Withdrawal of affiliation from the A: Apetitionforcertificationelection(PCE) cannot
contracting union brought about by be entertained if, before the filing of the PCE, a
schismormassdisaffiliation bargaining deadlock to which an incumbent or
5. Contract where the identity of the certified bargaining agent is a party, had been
representative is in doubt. (ALU v. Ferrer submitted to conciliation or arbitration or had
Calleja,G.R.No.85085,Nov.6,1989) becomethesubjectofavalidstrikeorlockout.
6. CBAenteredintobetweentheErandthe
union during the pendency of a petition Q: What are the indications of a genuine
for CE (Vassar Industries Ees Union v. deadlock?
Estrella,G.R.No.L46562,Mar.31,1978)
7. CBA conducted between the Er and the A:
unionisnotbartoacertificationelection 1. Thesubmissionofthedeadlocktoathird
filed by another union and said CBA can partyconciliatororarbitrator;and
berenegotiatedattheoptionofthenew 2. The deadlock is the subject of a valid
bargainingagent.(ATUv.Hon.Noriel,G.R. noticestrikeorlockout.
No.L48367,Jan.16,1979)
8. ACBAregisteredwithfalsifiedsupporting Q:CapitolMedicalCenterEesAssociationAlliance
documents ofFilipinoWorkers(CMCEAAFW)emergedasthe
9. CBA was concluded in violation of an certifiedrepresentativeoftherankandfileEesat
orderenjoiningthepartiesfromentering Capitol Medical Center (CMC). Due to CMCs
into a CBA until the issue of refusaltobargaincollectively,CMCEAAFWfileda
representationisresolved noticeofstrikeandlateronstagedthestrikeafter
10. Petition is filed during the 60day complying with the other legal reqts. The SLE
freedomperiod. assumed jurisdiction over the case and issued an
order certifying the same to the NLRC for
Note:Basictothecontractbarruleistheproposition compulsoryarbitration.Duringalloftheseevents
thatthedelayoftherighttoselectrepresentativescan Capitol Medical Center Alliance of Concerned
bejustifiedonlywherestabilityisdeemedparamount. employees (Ees)Unified Filipino Service Workers
Excepted from the contract bar rule are certaintypes filedapetitionforCEamongtheregularrankand
of contracts which do not foster industrial stability, fileEesofCMC.ThepetitionforCEwasdismissed
such as contracts where the identity of the and the CMC was directed to negotiate with
representativeisindoubt.Anystabilityderivedfrom CMCEAAFW.WasthedismissalofthePCEproper?
such contracts must be subordinated to the Ees
freedom of choice because it does not establish the A: Yes, if the law proscribes the conduct of a CE
type of industrial peace contemplated by law. when there is a bargaining deadlock submitted to
(Firestone Tire & Rubber Company Ees Union v. conciliationorarbitration,withmorereasonshould
Estrella,G.R.No.L4551314,Jan.6,1978) itnotbeconductedif,despiteattemptstobringan
Er to the negotiation table by the certified
Q: Can the BLR certify a union as the exclusive bargaining agent, there was "no reasonable effort
bargaining representative after showing proof of ingoodfaith"ontheErtobargaincollectively.
majority representation thru union membership
cardswithoutconductinganelection? Thecircumstancesinthiscaseshouldbeconsidered
as similar in nature to a "bargaining deadlock"
A:No.The LC (In Arts. 256,257and258)provides whennoCEcouldbeheld.Thisisalsotomakesure
only for a CE as the mode for determining that no floodgates will be opened for the
theexclusivecollectivebargaining representative circumvention of the law by unscrupulous Ers to
if there is a question of representation in an prevent any certified bargaining agent from
appropriatebargainingunit.(1998BarQuestion) negotiatingaCBA.Sec.3,(RuleVIII),BookVofthe
IRRshouldbeinterpretedliberallysoastoincludea
Q:Whendoesdeadlockarise?
circumstancewhereaCBAcouldnotbeconcluded
duetothefailureofonepartytowillinglyperform
A: It arises when there is an impasse, which
its duty to bargain collectively. (Capitol Medical
presupposes reasonable effort at good faith
CenterAllianceofConcernedEesv.Laguesma,G.R.
No.118915,Feb.4,1997)

135
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UST GOLDEN NOTES 2011

votes will be declared the winner


Q:Shouldthecertificationelectionproceedingsbe provided they get the majority votes of
suspended in view of the pending case for thetotalvotescast.
cancellation of the unions certificate of
registration? Q:Whoarethechoicesinarunoffelection?

nd
A:No,thependencyofacancellationcaseisnota A:Theunionsreceivingthehighestand2 highest
ground for the dismissal or suspension of a number of the votes cast. (Sec.2, Rule X, Book V,
representation proceeding considering that a IRR)
registeredlabororganization(LO)continuestobea
legitimateoneentitledtoalltherightsappurtenant Note: No Union shall notbe achoice in the runoff
thereto until a final valid order is issued cancelling election
suchregistration.
Once a LO attains the status of a LLO it begins to (5)RerunElection
possess all of the rights and privileges granted by
law to such organizations. As such rights and Q:WhendoesRerunElectiontakeplace?
privileges ultimately affect areas which are
constitutionallyprotected,theactivitiesinwhichLO, A: 1.Ifonechoicereceivesapluralityofthe
associationsandunionsareengageddirectlyaffect voteandtheremainingchoicesresultsina
the public interest and should be zealously tie;or
protected.(ProgressiveDevtCorp.v.SLE,G.R.No. 2.Ifallchoicesreceivedthesamenumber
115077,April18,1997) ofvotes.

Q:Whatisnegotiationbarrule? Note:Inbothinstances,thenounionisalsoachoice.

A:APCEcannotbeentertainedif,beforethefiling (5)ConsentElection
of the PCE, the duly recognized or certified union
has commenced negotiations with the Er in Q:Whatisaconsentelection?
accordancewithArt.250oftheLC.
A: An election voluntarily agreed upon by the
Q:Whatiscertificationyearrule? parties, with or without the intervention by DOLE.
(Sec.1[h],RuleI,BookV,IRR)
A: No PCE may be filed within one year from the
Note: To afford an individual employeevoter an
date of a valid certification, consent, or runoff
informed choice where a local/chapter is the
electionorfromthedateofvoluntaryrecognition. petitioning union, the local/chapter shall secure its
certificate of creation at least 5 working days before
(4)RunoffElection thedateoftheconsentelection.(Sec.1,RuleVIII,Book
V,IRRasamendedbyDO40F03)
Q:Whatisarunoffelection?
Q: What are the requisites before a labor union
A:Anelectionconductedwhen: canbedeclaredawinner(doublemajorityrule)?

1. Anelectionwhichprovidesfor3ormore A:
choicesresultsinnoneofthecontending 1. Majority of the eligible voters cast their
unions receiving a majority of the valid votes.
votescast,and 2. Majorityofthevalidvotescastisforsuch
2. There are no objections or challenges union.
whichifsustainedcanmateriallyalterthe
results,provided Q:Howtodeterminethedoublemajorityrule?
3. The total number of votes for all the
contending unions is at least 50% of the A:
numberofvotescast.(Sec.1,RuleX,Book 1. Indeterminingtheeligiblevotescast(first
V,IRR) majority)includespoiledballots
4. Not one of the choices obtained the 2. In determining valid votes (second
majority of the valid votes cast (50%+ 1 majority), eliminate spoiled ballots but
secondmajority); includedthechallengedvotes.
5. The two choices which garnered the
highest votes will be voted and the one
which garners the highest number of

136
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LABOR RELATIONS LAW

Q: A certification election was conducted among RequirespetitionforCE


the rankandfile Ees of Holiday Inn Manila filedbyaunionorEr.A
Pavilion Hotel. In view of the significant number MedArbitergrantsthe
of segregated votes, contending unions, National Todeterminethesole petitionandanelection
UnionofWorkersinHotels,RestaurantsandAllied andexclusivebargaining officerisdesignatedby
agentofalltheEesinan regionaldirectorto
IndustriesManila Pavilion Hotel Chapter
appropriatebargaining supervisetheelection.
(NUWHRAINMPHC) and Holiday Inn Manila
unitforthepurposeof
Pavilion Hotel Labor Union (HIMPHLU), referred
collectivebargaining. Note:MedArbitermay
thecasebacktotheMedArbitertodecidewhich determineifthereisErEe
among those votes would be opened and tallied. relationshipandifthe
11 votes were initially segregated because they votersareeligible.
were cast by dismissed Ees, albeit the legality of ConsentElection
theirdismissalwasstillpendingbeforetheCA.6 Todeterminetheissueof
othervotesweresegregatedbecausetheEeswho majorityrepresentation
cast them were already occupying supervisory ofalltheworkersinthe
positions at the time of the election. Still 5 other appropriateCBunit
votes were segregated on the ground that they mainlyforthepurposeof
were cast by probationary Ees and, pursuant to determiningthe Heldbyagreementofthe
the existing CBA, such Ees cannot vote. administratoroftheCBA unionswithorwithout
NUHWHRAINMPHC further avers that HIMPHLU, whenthecontracting theparticipationofthe
which garnered 169 votes, should not be unionsufferedmassive MedArbiter.
immediatelycertifiedasthebargainingunit,asthe disaffiliationandnotfor
thepurposeof
opening of the 17 segregated ballots would push
determiningthe
the number of valid votes cast to 338, hence,the
bargainingagentfor
169 votes which HIMPHLU garnered would be 1
purposeofCB.
vote short of the majority which would then DirectCertification
become170. MedArbiterdirectly
ALOisdirectlycertified
certifiesthatalabor
Was HIMPHLU able to obtain the required asanappropriate
unionistheexclusiveCB
majority for it to be certified as the exclusive bargainingunitofa
representativeoftheEes
bargainingagent? companyuponshowing
ofanappropriate
thatpetitionissupported
bargainingunitwithout
A: No, it is wellsettled that under the double byatleastamajorityof
holdingaCE,butmerely
majority rule for there to be a valid certification theEesinthebargaining
onthebasisofevidence
election,majorityofthebargainingunitmusthave unit.
ofinsupportofthe
voted and the winning union must have garnered
unionsclaimthatisthe
Note:Directcertificationis
majorityofthevalidvotescast. choiceofthemajorityof
nolongerallowed.
theEes.
Following the ruling that all the probationary Ees RunOffElection
votes should be deemed valid votes while that of Takesplacebetweenthe
the supervisory Ees should be excluded, it follows unionswhoreceivedthe
thatthenumberofvalidvotescastwouldincrease. twohighestnumberof
Under Art. 256 of the LC, the union obtaining the votesinaCEwith3or
majorityofthevalidvotescastbytheeligiblevoters morechoices,wherenot
shall be certified as the sole exclusive bargaining oneoftheunions
agent of all the workers in the appropriate obtainedthemajorityof
bargainingunit.Thismajorityis50%+1,inthiscase thevalidvotescast,
providedthetotalunion
atleast170.HIMPHLUobtained169,clearlyitwas
votesisatleast50%of
not able to obtain a majority vote. (NUWHRAIN
thevotescast.
MPHCv.SLE,G.R.No.181531,July31,2009)
RerunElection
Takes place in 2
Q: Distinguish certification election, consent
instances:
election, direct certification, and runoff and re
1. Ifonechoicereceivesa
runelections. plurality of the vote
and the remaining
A: choicesresultsinatie;
Participationof or
Purpose
MedArbiter 2. If all choices received
CertificationElection the same number of

137
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UST GOLDEN NOTES 2011

votes. processedbytheLaborRelationsDivision
attheRO.
In both instances, the no
unionisalsoachoice. 2. Federations, national unions or workers
association operating in more than one
Note: Petition for cancellation of registration is not a regionItisfiledwiththeBLRoftheRO,
bar to a PCE. No prejudicial question shall be butshallbeprocessedbytheBLR.
entertained in a petition for certification election.
(D.O.4003) Q:WhatisthedutyoftheBLRafteraLOhadfiled
the necessary papers and documents for
(7)AffiliationandDisaffiliationoftheLocalUnion
registration?
fromtheMotherUnion
A:ItbecomesmandatoryfortheBLRtocheckifthe
Q:Howisalocalchaptercreated?
reqts under Art. 234 of the LC have been
sedulously complied with. If its application for
A: A duly registered federation or national union
registration is vitiated by falsification and serious
may directly create a local/ chapter by issuing a
irregularities,especiallythoseappearingontheface
chartercertificateindicatingtheestablishmentofa
oftheapplicationandthesupportingdocuments,a
local/chapter.
LO should be denied recognition as a LLO.

(ProgressiveDevtCorp.PizzaHutv.Laguesma,G.R.
1. Thechaptershallacquirelegalpersonality
No.115077,April18,1997)
only for purposes of filing a petition for
certificationelectionfromthedateitwas
Q: Within what period should the BLR act on the
issuedachartercertificate
applicationssubmittedbeforeit?
2. The chapter shall be entitled to all other
rights and privileges of a legitimate labor A: It shall act on all applications for registration
organization (LLO) only upon the within10mdaysfromreceipteitherby:
submissionofthefollowingdocumentsin
additiontoitschartercertificate: 1. Approvingtheapplicationandissuingthe
a. Names of the chapters officers, certificate of registration/acknowledging
their addresses, and the principal thenotice/report;or
officeofthechapter 2. Denyingtheapplication/noticeforfailure
b. Chaptersconstitutionandbylaws of the applicant to comply with the
c. Where the chapters constitution requirementsforregistration/notice(D.O.
and bylaws are the same as that of 4003,RuleIV,Sec.4,seriesof2003)
thefederationorthenationalunion,
this fact shall be indicated Note:Allrequisitedocumentsshallbe:
accordingly 1. Certified under oath by the secretary or
3. The genuineness and due execution of treasurer of the organization, as the case
thesupportingrequirementsshallbe: maybeand
a. Certifiedunderoathbythesecretary 2. AttestedtoitbyitsPresident.
ortreasurerofthelocal/chapter,and
b. Attestedtobyitspresident(Sec.2[e], Q:MaytheBLRreviewtheissuanceofacertificate
Rule III, Book V, IRR, as amended by ofregistration?
D.O.40F03)
A: No. The BLR has the duty to review the
Note: Under the LC and therules, the powergranted application for registration not the issuance of a
to LOs to directly create a chapter or local through certificateofregistration.
chartering is given to a federation or national union
only, not to a trade union center. (SMCEU v. San Q: Why is a lesser requirement imposed for a
Miguel Packaging Products Ees Union, G.R. No. charteredlocal?
171153,Sep.12,2007)
A:Theintentofthelawinimposinglesserreqtsin
Q:Whereistheapplicationforregistrationfiled?
the case of branch or local of a registered
federation or national union is to encourage the
A:
affiliation of a local union in order to increase the
1. Independent labor unions, chartered
local unions bargaining power respecting terms
localsorworkersassociationsItisfiled
and conditions of labor. (Progressive Devt Corp v.
with the Regional Office (RO). where the
SLE,G.R.No.96425,Feb.4,1992)
applicant principally operates. It shall be

138
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LABOR RELATIONS LAW

Q:Whataretherequirementsbeforeafederation 3. Thetotalnumberofmemberscomprising
canbeissuedacertificateofregistration? the labor union and the names of
memberswhoapprovedtheaffiliation;
A: The application for registration of federations 4. The certificate of affiliation issued by the
and national unions shall be accompanied by the federation in favor of the independently
followingdocuments: registeredlaborunion;and
5. Written notice to the employer
1. A statement indicating the name of the concerned if the affiliating union is the
applicant labor union, its principal incumbent bargaining agent. (D.O. 4003,
address,thenameofitsofficersandtheir Rule,III,Sec.7,seriesof2003)
respectiveaddresses;
Q:Whatistheeffectofaffiliation?
2. The minutes of the organizational
meeting(s) and the list of Ees who A:Thelaborunionthataffiliateswithafederationis
participatedinthesaidmeeting(s); subjecttothelawsoftheparentbodyunderwhose
authority the local union functions. The
3. The annual financial reports if the constitution, bylaws and rules of the mother
applicantunionhasbeeninexistencefor federation,togetherwiththecharteritissuestothe
1 or more years, unless it has not local union, constitutes an enforceable contract
collectedanyamountfromthemembers, between them and between the members of the
in which case a statement to this effect subordinate union inter se. Thus, pursuant to the
shallbeincludedintheapplication; constitution and bylaws, the federation has the
righttoinvestigateandexpelmembersofthelocal
4. Theapplicantunion'sconstitutionandby union. (Villar v. Inciong, G.R. No. L5028384, April
laws, minutes of its adoption or 20,1983)
ratification, and the list of the members
whoparticipatedinit.Thelistofratifying Q: May a local union disaffiliate from the
members shall be dispensed with where federation?
the constitution and bylaws was ratified
or adopted during the organizational A:
meeting(s). In such a case, the factual GR: A labor union may disaffiliate from the
circumstances of the ratification shall be mother union to form an independent union
recorded in the minutes of the only during the 60day freedom period
organizationalmeeting(s); immediately preceding the expiration of the
CBA.
5. Theresolutionofaffiliation ofatleast10
LLOs, whether independent unions or XPN: Even before the onset of the freedom
charteredlocals,eachofwhichmustbea period,disaffiliationmaystillbecarriedout,but
duly certified or recognized bargaining such disaffiliation must be effected by the
agentintheestablishmentwhereitseeks majority of the union members in the
tooperate;and bargainingunit.

6. The name and addresses of the Note:Thishappenswhenthereisasubstantialshiftin
companies where the affiliates operate allegianceonthepartofthemajorityofthemembers
and the list of all the members in each of the union. In such a case, however, the CBA
company involved. (D.O. 4003, Rule, III, continues to bind the members of the new or
Sec.2B,seriesof2003) disaffiliated and independent union up to determine
the union which shall administer the CBA may be

conducted. (ANGLOKMU v. Samahan ng
Q:Whataretherequirementsforaffiliation?
Manggagawang Nagkakaisa sa Manila Bay Spinning

MillsatJ.P.Coats,G.R.No.118562,July5,1996)
A: The report of affiliation of independently
registered labor unions with a federation or Q:Whatisthelimitationtodisaffiliation?
national union shall be accompanied by the
followingdocuments: A: Disaffiliation should be in accordance with the
1. Resolution of the labor union's board of rulesandproceduresstatedintheconstitutionand
directorsapprovingtheaffiliation; bylaws of the federation. A local union may
2. Minutes of the general membership disaffiliatewithitsmotherfederationprovidedthat
meetingapprovingtheaffiliation; thereisnoenforceableprovisioninthefederations

139
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UST GOLDEN NOTES 2011

constitution preventing disaffiliation of a local CHARTEREDLOCALUNION


union.(TropicalHutEesUnionv.TropicalHut,G.R. Independently
Unregistered
Nos.L4349599,Jan.20,1990) Registered
Howtoaffiliate?
Note: A prohibition to disaffiliate in the Federations Byapplicationofwiththe
constitutionandbylawsisvalidbecauseitisintended federationforthe
Bysigningcontractof
foritsownprotection. issuanceofacharter
affiliation
certificatetobe
Q:Whatistheeffectofcancellationofregistration submittedtotheBLR
ofafederationoranationalunion? EffectofDisaffiliationtotheunion(local)
WouldceasetobeLLO
A: Wouldnotaffectitsbeing andwouldnolonger
GR:Itshalloperatetodivestitslocals/chapters aLLOandthereforeit havethelegalpersonality
oftheirstatusasLLO. wouldcontinuetohave andtherightsand
legalpersonalityandto privilegesgrantedbylaw
XPN: Locals/chapters retain status as LLO if possesallrightsand toLLO,unlessthelocal
theyarecoveredbyadulyregisteredCBA. privilegesofLLO. chapteriscoveredbyits
dulyregisteredCBA.
Note Locals or chapters who retained status as LLO EffectofDisaffiliationtotheCBA
shall be allowed to register as independent unions. If TheCBAwouldcontinue
AnexistingCBAwould
they fail to register, they shall lose their legitimate tobevalid.Thelocal
continuetobevalidas
statusupontheexpirationoftheCBA. chapterwillnotloseits
theLOcancontinue
personality,unlessit
administeringthenCBA.
Q: PSEA is a local union in Skylander company registersanew.
which is affiliated with PAFLU. PSEA won the EntitlementtounionduesafterDisaffiliation
certification election among the rank and file Ees Unionduesmayno
oftheSkylandercompanybutitsrivalunionPSEA LOentitledtotheunion longerbecollectedas
WATU protested the results. Pending the duesandnotthe therewouldnolongerbe
resolution of such controversy, PSEA disaffiliated federationfromwhich anylaborunionthatis
with PAFLU and hence affiliated with NCW which theLOdisaffiliated. allowedtocollectsuch
wassupportedbyitsmembers.Mayalocalunion unionduesfromtheEes.
disaffiliatewithitsmotherfederationpendingthe
settlementofthestatusasthesoleandexclusive
bargainingagent? Q:Whatistheformofthedecisionofthedenialof
applicationforregistration?
A: Yes. The pendency of an election protest does
not bar the valid disaffiliation of the local union A:Itshallbe:
which was supported by the majority of its 1. Inwriting
members. 2. Stating in clear terms the reason for the
decision
The right of a local union to disaffiliate with the 3. Applicantunionmustbefurnishedacopy
federation in the absence of any stipulation in the ofsaiddecision.
constitution and bylaws of the federation
prohibiting disaffiliation is well settled. Local Q:Isthedenialofregistrationappealable?
unionsremainasthebasicunitofassociation,free
toservetheirowninterestsubjecttotherestraints A:Yes.
imposedbytheconstitutionandbylawsofnational 1. Decisions of the Regional Office shall be
federationandarefreetorenouncesuchaffiliation appealabletotheBLRandCA.
upon the terms and conditions laid down in the 2. The BLRs decisions on cases appealed
agreement which brought such affiliation to from Regional Director are final and not
existence.Inthecaseatbar,noprohibitionexisted appealabletotheSLE.
under the constitution and bylaws of the 3. Decisions of the BLR denying the
federation.Hence,theunionmayfreelydisaffiliate registration of a LO (federation or
withthefederation.(PhilippineSkylandersv.NLRC, national union) is appealable to the SLE
G.R.No.127374,Jan.31,2002) within 10 days from receipt of the
decision,ongroundsof:
Q: Distinguish between an independently a. Graveabuseofdiscretion;or
registeredandunregisteredcharteredlocalunion. b. Grossincompetence.
4. DecisionofSLEappealabletoCA.
A:

140
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LABOR RELATIONS LAW

Q: How is appeal taken with regard to denial or a. Failure to comply with any of the
cancellationofregistration? reqtsunderArt.234,237and238of
theLC.
A: b. ViolationofanyprovisionunderArt.
DENIALORCANCELLATIONOFREGISTRATION 239,LC.
ByRegionaloffice ByBLR
Transmitrecordswithin24hours 2. For federations, national or industry
fromreceiptoftheMemoofAppeal unions, trade union centers Only
BLRwilldecideonthe members of the labor organization (LO)
SLEdecidesonthematter
matterwithin20days concerned may file if the grounds are
within20daysfrom
fromreceiptofthe actions involving violations of Art. 241,
receiptofrecords
records subjecttothe30%rule.
AppealtoCAviaRule65
Q:Whatistheeffectofcancellationofregistration
Note: Appeal is by memo of appeal within 10 days
if the cancellation is made in the course of the
fromreceiptofnotice.
proceedings?
Q:Whocancelsthecertificateofregistration?
A: Where a labor union is a party in a proceeding
and later it loses its registration permit in the
A: The certificate of registration of any LLO,
course or during the pendency of the case, such
whethernationalorlocal,maybecancelledbythe
union may continue as party without need of
BLR, after due hearing, only on the grounds
substitution of parties, subject however to the
specifiedinArt.239.(asamendedbyR.A.9481)
understanding that whatever decision may be
Q:Whatistheeffectofapetitionforcancellation renderedwillbebindingonlyuponthosemembers
orofunionregistration? oftheunionwhohavenotsignifiedtheirdesireto
withdrawfromthecasebeforeitstrialanddecision
A: It shall not suspend the proceedings for onthemerits.
certification election (CE) nor shall it prevent the
filingofCE. Note: Rationale: Principle of agency is applied the
Eesaretheprincipals,andtheLOismerelyanagentof
the former, consequently, the cancellation of the
Incaseofcancellation,nothinghereinshallrestrict
unionsregistrationwouldnotdeprivetheconsenting
the right of the union to seek just and equitable
memberEesoftheirrighttocontinuethecaseasthey
remediesintheappropriatecourts.
areconsideredastheprincipals.
Q: Where is a petition for cancellation of
Q:Whatarethegroundsforcancellationofunion
registration or application for voluntary
registration?
dissolutionfiled?

A:
A:
1. Misrepresentation, false statement or
1. For legitimate independent labor unions,
fraudinconnectionwiththe:
local/chapter and workers association
a. Adoption or application of the
It shall be filed with the Regional Office
constitution and bylaws or
which issued its certificate of registration
amendmentsthereto
orcreation.
b. Minutesofratificationand
2. For federations, national or industry and
c. Listofmemberswhotookpartinthe
tradeunioncentersItshallbefiledwith
ratification;
the BLR. (Sec. 1, Rule XIV, Book V, IRR as
d. Electionofofficers
amendedbyD.O.40F03)
e. Minutes of the election of officers

and
Q: Who may file a petition for cancellation of
f. Listofvoters(Art.239asamended)
registration?

A: 2. Voluntary dissolution by the members.
1. For legitimate individual labor union, (asamendedbyR.A.9481)
charteredlocalandworkersassociation
Note:Apronouncementastothelegalityofthestrike
Any partyininterest may file a petition
isnotwithinthemeaningofArt.239oftheLC.
for cancellation of registration if the

groundis:

141
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VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE Facultad de Derecho Civil
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UST GOLDEN NOTES 2011

Q: What are the prohibited grounds for Rule V, Book V, IRR, as amended by D.O.
cancellationofunionregistration? 40F03)
A:
1. TheinclusionasunionmemberofEeswho Note:Failuretosubmitreportorialrequirementsisno
are outside the bargaining unit shall not longer a ground for cancellation but shall subject the
be a ground to cancel the union erring officers or members to suspension, expulsion
registration. The ineligible Ees are from membership, or any appropriate penalty (Art.
automatically deemd removed from the 242A,asinsertedbyR.A.9481).
list of membership of the union as.(Art.
245AasamendedbyRA9481) Q:Whatisthesuccessorininterestdoctrine?
2. The affiliation of the rankandfile and
A:
supervisory unions operating within the
GR: It is when an Er with an existing CBA is
same establishment to the same
succeeded by another Er, the successorin
federationornationalunionshallnotbea
interest who is the buyer in good faith has no
ground to cancel registration of either
liability to the Ees in continuing employment
union. (Sec. 6, Rule XIV, Book V, as
and the bargaining agreement because these
insertedbyD.O.40F03)
contractsareinpersonam.

Q: How is voluntary cancellation of registration


XPNs:
made?
1. When the successorininterest expressly

assumesanobligation;
A: Registration may be cancelled by the
2. The sale is a device to circumvent the
organizationitselfprovided:
obligation;or

3. Thesaleortransferismadeinbadfaith.
1. At least of its general membership

votes to dissolve the organization, in a
(a)SubstitutionaryDoctrine
meetingdulycalledforthatpurpose;and
Q:Whatisthesubstitutionarydoctrine?
2. An application to cancel registration is
thereaftersubmittedbytheboardofthe A: It is where there occurs a shift in the Ees union
organization,attestedbyitspresident. allegiance after the execution of a collective
bargaining (CB) contract with the Er, the Ees can
Q: What are the reportorial requirements change their agent (labor union) but the CB
required to be submitted by a legitimate labor contract which is still subsisting continues to bind
organization(LLO)? the Ees up to its expiration date. They may
however, bargain for the shortening of said
A: The following documents are required to be expirationdate.
submittedtoBLRbytheLLOconcerned:
Note: The Er cannot revoke the validly executed CB
1. Within 30 days from adoption or contract with their Er by the simple expedient of
ratification of the constitution and by changing their bargaining agent. The new agent must
laws(CBL)oramendmentsthereto: respectthecontract.(BenguetConsolidatedInc.v.BCI
a. CBLoramendmentsthereto EesandWorkersUnionPAFLU,G.R.No.L24711,April
b. Minutesofratification 30,1968)
c. Listofmemberswhotookpartinthe
ratification of the constitution and Itcannotbeinvokedtosupportthecontentionthata
bylaws; newlycertifiedCBagentautomaticallyassumesallthe
2. Within 30 days from date of election or personalundertakingsoftheformeragentliketheno
appointment: strikeclauseintheCBAexecutedbythelatter.
a. Listofelectedandappointedofficers
(8)UnionDuesandSpecialAssessments
and agents entrusted with the

handingofunionfunds
(a)UnionDues
b. Minutesofelectionofofficers

c. Listofvoters
Q:Whatareuniondues?
3. Annual financial report within 30 days

afterthecloseofeveryfiscalyear
A:Theseareregularmonthlycontributionspaidby
4. List of members at least once a year or
the members to the union in exchange for the
wheneverrequiredbytheBureau.(Sec.1,

142
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM

LABOR RELATIONS LAW

benefits given to them by the CBA and to finance Q: What are the requisites for a valid levy of
theactivitiesoftheunioninrepresentingtheunion. specialassessmentorextraordinaryfees?
Q:Whatischeckoff?
A:
A:ItisamethodofdeductingfromanEespayata 1. Authorization by a written resolution of
prescribed period, the amounts due the union for themajorityofallmembersatthegeneral
fees,finesandassessments. membership meeting duly called for that
purpose;
Deductionsforunionservicefeesareauthorizedby 2. Secretarys record of the minutes of the
law and do not require individual checkoff meeting,whichmustincludethe:
authorizations. a. Listofmemberspresent
b. Votescast
Q:Whatisthenatureandpurposeofcheckoff? c. Purposeofthespecialassessments
d. Recipientofsuchassessments;
A:Unionduesarethelifebloodoftheunion.
3. Individualwrittenauthorization tocheck
off duly signed by the Ee concerned to
All unions are authorized to collect reasonable
levysuchassessments.
membership fees, union dues, assessments and

fines and other contributions for labor education
Q: What is the effect of failure to strictly comply
and research, mutual death and hospitalization
therequirementssetbylaw?
benefits, welfare fund, strike fund and credit and

cooperativeundertakings.(Art.277[a])
A: It shall invalidate the questioned special
Q:Whataretherequisitesofavalidcheckoff? assessments. Substantial compliance of the
requirementsisnotenoughinviewofthefactthat
A: the special assessment will diminish the
GR: No special assessments, attys fees, compensationofunionmembers.(Palacolv.Ferrer
negotiationfeesoranyotherextraordinaryfees Calleja,G.R.No.85333,Feb.26,1990)
maybecheckedofffromanyamountduetoan
employee (Ee) without individual written Q:Whohasjurisdictionovercheckoffdisputes?
authorizationdulysignedbytheEe.
A: Being an intraunion dispute, the Regional
Theauthorizationshouldspecificallystatethe: Director of DOLE has jurisdiction over check off
1. Amount disputes.
2. Purpose&
Q:Distinguishcheckofffromspecialassessments.
3. Beneficiaryofthededuction.

A:
XPNs:
Checkoff SpecialAssessment
1. FormandatoryactivitiesundertheLC
Howapproved
2. Foragencyfees
(UnionDues)
3. Whennonmembersoftheunionavailof Byobtainingtheindividual Bywrittenresolution
thebenefitsoftheCBA: writtenauthorizationduly approvedbymajorityof
a. Nonmembers may be assessed signedbytheEewhich allthemembersatthe
unionduesequivalenttothatpaidby mustspecify: meetingcalledforthat
unionmembers; 1. Amount purpose.
b. Only by board resolution approved 2. Purpose
by majority of the members in 3. Beneficiary
general meeting called for the Exceptiontosuchrequirement
purpose.

(b)SpecialAssessments

Q: What are special assessments or extraordinary
fees?

A:Theseareassessmentsforanypurposeorobject
other than those expressly provided by the labor
organizationsconstitutionandbylaws.

143
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE Facultad de Derecho Civil
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ


UST GOLDEN NOTES 2011

(Agencyfees) UnionDues AgencyFee


Notnecessarywhen: Isdeductedfromnon
1. Formandatoryactivities Isdeductedfrom membersofthe
undertheLC membersforthe bargainingagent(union)
2. Foragencyfees paymentofuniondues fortheenjoymentofthe
3. Whennonmembersof benefitsundertheCBA.
theunionavailofthe Maynotbededucted
benefitsoftheCBA: Maybedeductedfrom
fromthesalariesofthe
a. Saidnonmembers Noexception;written thesalaryoftheEes
unionmemberswithout
maybeassessed resolutionismandatory withouttheirwritten
thewrittenconsentof
unionduesequivalent inallinstances. consent.
theworkersaffected.
tothatpaidbyunion
members;
b. OnlybyBoard 2.RIGHTTOCOLLECTIVEBARGAINING
resolutionapproved
bymajorityofthe Q:Whatiscollectivebargaining(CB)?
membersingeneral
meetingcalledforthe A:
purpose
1. It is the process of negotiation by an
organization or group of workmen, in
Q: Are Ees who are members of another union behalfofitsmembers,withtheemployer
consideredfreeriders? (Er), concerning wages, hours of work,
and other terms and conditions of
A: No. When the union bids to become the
employmentand
bargaining agent, it voluntarily assumes the

responsibilityofrepresentingalltheEes.
2. Thesettlementofdisputesbynegotiation

between an Er and the representative of


(9)AgencyFees
hisemployees(Ee)


Q:Whatisanagencyfee?
3. It is the obligation to meet and convene

promptly and expeditiously in good faith


A:Itisanamountequivalenttouniondues,whicha
for the purpose of negotiating an
nonunion member pays to the union because he
agreement with respect to wages, hours
benefitsfromtheCBAnegotiatedbytheunion.
of work and all other terms and
conditions of employment including
Note:AgencyfeecannotbeimposedonEesalreadyin
the service and are members of another union. If a proposals for adjusting any grievances or
closed shop agreement cannot be applied to them, questions arising under such agreement
neither may an agency fee, as a lesser form of union and executing a contract incorporating
security, be imposed to them. Payment by nonunion such agreements if requested by either
membersofagencyfeesdoesnotamounttoanunjust partybutsuchdoesnotcompelanyparty
enrichment basically the purpose of such dues is to to agree to a proposal or to make any
avoid discrimination between union and nonunion concession.(Art.252,LC)
members.
Note:
Q:WhataretherequisitesforassessmentofAgency GR:Nocourtoradministrativeagencyorofficial
fees(Art.248[e],LC)? shallhavethepowertosetorfixwages,ratesof
pay,hoursofwork,orothertermsandconditions
A: ofemployment
1. Theemployeeispartofthebargainingunit
2. Heisnotamemberoftheunion XPNs:AsotherwiseprovidedundertheLC:
3. HepartookofthebenefitsoftheCBA
1. National Wages and Productivity
Note:TheindividualauthorizationrequiredunderArt. CommissionandRTWPBastowagefixing.
242, par. O of the LC shall not apply to the non (Art.99and122,LC)
members of the recognized collective bargaining 2. NCMB and NLRC as to wage distortion.
agent. (Art.124,LC)
3. SLE and President of the Philippines as to
Q:Distinguishunionduesfromagencyfees. certification and assumption of powers
overlabordisputes.(Art.236[g],LC)
A:

144
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM

LABOR RELATIONS LAW

Q:Whatisthepurposebehindthisrule? Note: The certification of the CBA by the BLR is not


required to make such contract valid. Once it is duly
A: It is to encourage a truly democratic method of enteredintoandsignedbytheparties,aCBAbecomes
regulatingtherelationsbetweentheemployersand effectiveasbetweenthepartieswhetherornotithas
employeesbymeansofagreementsfreelyentered been certified by the BLR. (Liberty Flour Mills Ees
intothroughCB. Association v. Liberty Flour Mills, G.R. Nos. 5876870,
Dec.29,1989)

Q:WhoarethepartiestoaCB?
Q:Whatisazipperclause?


A:
A: It is a stipulation in a CBA indicating that issues
1. Employer
that could have been negotiated upon but not
2. Employees, represented by the exclusive
contained in the CBA cannot be raised for
bargainingagent
negotiationwhentheCBAisalreadyineffect.


Q: What are the jurisdictional preconditions in
A CBA is not an ordinary contract but one impressed
collectivebargaining?
with public interest, only provisions embodied in the
CBA should be so interpreted and complied with.
A: Where a proposal raised by a contracting party does
1. Possession of the status of majority not find print in the CBA, it is not a part thereof and
representation of the employees the proponent has no claim whatsoever to its
representative in accordance with any of implementation. (SMTFMUWP v. NLRC , G.R. No.
the means of selection or designation 113856,Sept.7,1998)
providedfortheLaborCode
2. Proofofmajorityrepresentation Q:Whenshallbargainingcommence?
3. AdemandtobargainunderArt.250(a)of
the LC. (Kiok Loy v. NLRC, G.R. No. L A: It commences within 12 months after the
54334,Jan.22,1986) determinationandcertificationoftheEesexclusive
bargainingrepresentative.(certificationyear)
a.DutytoBargainCollectively
Q:WhatistheprocedureinCB?
Q: When does the duty of the employer (Er) to
bargaincollectivelyarise? A:Whenapartydesirestonegotiateanagreement:

A:OnlyaftertheunionrequeststheErtobargain.If 1. It shall serve a written notice upon the
thereisnodemand,theErcannotbeindefault. otherpartywithastatementofproposals
2. Reply by the other party shall be made
Note: Where a majority representative has been within10dayswithcounterproposals
designated, it is an ULP for the Er, as a refusal to 3. In case of differences, either party may
collectively bargain, to deal and negotiate with the request for a conference which must be
minority representative to the exclusion of the heldwithin10calendardaysfromreceipt
majorityrepresentative. ofrequest

4. If not settled, NCMB may intervene and
Wherethereisalegitimaterepresentationissue,there
encourage the parties to submit the
isnodutytobargaincollectivelyonthepartoftheEr
(LakasngmgaManggagawangMakabayanv.Marcelo
disputetoavoluntaryarbitrator
Enterprises,G.R.No.L38258,Nov.19,1982) 5. If not resolved, the parties may resort to
any other lawful means (either to settle
Q: What is a collective bargaining agreement the dispute or submit it to a voluntary
(CBA)? arbitrator).

A: It is a contract executed upon request of either Note:DuringtheconciliationproceedingintheNCMB,
the parties are prohibited from doing any act which
theErortheexclusivebargainingrepresentativeof
may disrupt or impede the early settlement of
theEesincorporatingtheagreementreachedafter
disputes.(Art.250[d],LC)
negotiationswithrespecttowages,hoursofwork,

terms and conditions of employment, including
Q:WhatarethestagesinCB?
proposals for adjusting any grievance or questions

undertheagreement.
A:

145
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VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE Facultad de Derecho Civil
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UST GOLDEN NOTES 2011

1. Preliminary process: Sending a written 2. Parties cannot stipulate terms and


notice for negotiation which must be conditions of employment which are
clearandunequivocal below the minimum reqts prescribed by
2. Negotiationprocess. law.
3. Execution process: The signing of the
agreement Q:Mayeitherpartybargaintoanimpasse?
4. Publication for at least 5 days before
ratification A:Itdepends:
5. Ratification by the majority of all the
workers in the bargaining unit 1. Where the subject of a dispute is a
represented in the negotiation (not mandatory bargaining subject, either
necessaryincaseofarbitralaward) party may bargain to an impasse as long
6. Registrationprocess. ashebargainsinGF.
7. Administration process: The CBA shall be
jointly administered by the management 2. Where the subject is nonmandatory, a
andthebargainingagentforaperiodof5 party may not insist in bargaining to the
years. point of impasse. His instance may be
8. InterpretationandApplicationprocess. construedasevasionofdutytobargain.

Q: Does a petition for cancellation of a unions Q:Whatisthetestofbargaininginbadfaith?
certificate of registration involve a prejudicial
questionthatshouldfirstbesettledbeforeparties A: There is no perfect test of good faith (GF) in
couldberequiredtocollectivelybargain? bargaining. The GF or BF is an inference to be
drawnfromthefactsandislargelyamatterforthe
A: No. A pending cancellation proceeding is not a NLRCsexpertise.ThechargeofBFshouldberaised
bartosetmechanicsforcollectivebargaining(CB). whilethebargainingisinprogress.
Ifacertificationelectionmaystillbeheldevenifa
petition for cancellation of a unions registration is Note:WiththeexecutionoftheCBA,BFcannolonger
pending,moresothattheCBprocessmayproceed. be imputed upon any of the parties thereto. All
The majority status of the union is not affected by provisions in the CBA are supposed to have been
the cancellation proceedings. (Capitol Medical jointly and voluntarily incorporated therein by the
Centerv.Trajano,G.R.No.155690,June30,2005) parties. This is not a case where private respondent
exhibited an indifferent attitude towards CB because
Q: What is the duty to bargain collectively when the negotiations were not the unilateral activity of
thereisnoCBA? petitionerunion.TheCBAisgoodenoughthatprivate
respondent exerted reasonable effort of GF
A:Itistheperformanceofamutualobligation: bargaining. (Samahang Manggagawa sa Top Form
ManufacturingUnited Workers of the Phils v. NLRC,
G.R.No.113856,Sept.7,1998)
1. To meet and convene promptly and
expeditiouslyingoodfaith(GF)
2. For the purpose of negotiating an Q: Does an Ers steadfast insistence to exclude a
agreement with respect to wages, hours particular substantive provision in the
of work and all other terms and negotiations for a CBA constitute refusal to
conditionsofemployment bargainorbargaininginBF?
3. Including proposals for adjusting any
grievances or questions arising under A: No. This is no different from a bargaining
suchagreement;and representatives perseverance to include one that
4. To execute a contract incorporating such they deem of absolute necessity. Indeed, an
agreements if requested by either party. adamantinsistenceonabargainingpositiontothe
(Art.252) point where the negotiations reach an impasse
doesnotestablishbadfaith.Obviously,thepurpose
Q:Whatarethelimitationstothedutytobargain ofCBisthereachingofanagreementresultingina
collectively? contract binding on the parties; but the failure to
reach an agreement after negotiations have
A: continued for a reasonable period does not
1. Such duty does not compel any party to establish a lack of good faith. The statutes invite
agree to a proposal or to make any and contemplate a collective bargaining contract,
concession. but they do not compel one. The duty to bargain
does not include the obligation to reach an

146
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM

LABOR RELATIONS LAW

agreement. While the law makes it an obligation of the existing agreement during the 60
for the Er and the Ees to bargain collectively with dayperiodand/oruntilanewagreement
each other, such compulsion does not include the isreachedbytheparties.(Art.253,LC)
commitmenttoprecipitatelyacceptoragreetothe
proposals of the other. All it contemplates is that Q:WhatistheautomaticrenewalclauseofCBAs?
both parties should approach the negotiation with
anopenmindandmakereasonableefforttoreach A:AlthoughaCBAhasexpired,itcontinuestohave
a common ground of agreement. (Union of Filipro legaleffectsasbetweenthepartiesuntilanewCBA
Ees v. Nestle Phils., G.R. Nos. 15893031, Mar. 3, hasbeenenteredinto(Pier & Arrastre Stevedoring
2008) Services, Inc. v. Confessor, G.R. No. 110854,
February 13, 1995). This is so because the law
Q:Whatisadeadlock? makes it a duty of the parties to keep the status
quo and to continue in full effect the terms and
A: It is synonymous with impasse or a standstill conditions of the existing agreement until a new
which presupposes reasonable effort at GF agreementisreachedbytheparties.(Art.253,LC).
bargaining but despite noble intentions does not (2008BarQuestion)
concludeanagreementbetweentheparties.
Q:Whatmaybedoneduringthe60dayfreedom
Q: In case of deadlock in the renegotiationof the period?
CBA, what are the actions that may be taken by
theparties? A:
1. A labor union may disaffiliate from the
A:Thepartiesmay: mother union to form a local or
independentuniononlyduringthe60day
1. Call upon the NCMB to intervene for the freedom period immediately preceding
purpose of conducting conciliation or theexpirationoftheCBA.
preventivemediation; 2. Eitherpartycanserveawrittennoticeto
2. Referthematterforvoluntaryarbitration terminate or modify agreement at least
orcompulsoryarbitration; 60dayspriortoitsexpirationperiod.
3. Declare a strike or lockout upon 3. A petition for certification election may
compliance with the legal reqts (This befiled.
remedyisaremedyoflastresort).
Q:WhentofileCBA?
Q: May economic exigencies justify refusal to
bargain? A:Within30daysfromexecutionofCBA.

A: No. An employer is not guilty of refusal to Q:Whataretherequirementsforregistration?
bargain by adamantly rejecting the unions
economicdemandswhereheisoperatingataloss, A: The application for CBA registration shall be
on a low profit margin, or in a depressed industry, accompaniedbytheoriginaland2duplicatecopies
as long as he continues to negotiate. But financial ofthefollowingreqts:
hardship constitutes no excuse for refusing to
bargaincollectively. 1. CBA
2. A statement that the CBA was posted in
Q: What is the duty to bargain collectively when at least 2 conspicuous places in the
thereisaCBA? establishment concerned for at least 5
daysbeforeitsratification
A: 3. Statement that the CBA was ratified by
1. When there is a CBA the duty to bargain the majority of the Ees in the bargaining
collectively shall also mean that neither unit.
party shall terminate nor modify such
agreementduringitslifetime. Note: The following documents must be certified
2. Eitherpartycanserveawrittennoticeto under oath by the representative of the Er and the
terminate or modify the agreement at labor union. No other document shall be required in
least60dayspriortoitsexpirationdate. theregistrationoftheCBA.
3. Itshallbethedutyofbothpartiestokeep
the status quo and to continue in full Q:Whatisasingleenterprisebargaining?
forceandeffectthetermsandconditions

147
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE Facultad de Derecho Civil
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ


UST GOLDEN NOTES 2011

A: It involves negotiation between one certified


laborunionandoneEr.Anyvoluntarilyrecognized 3. Those not made within 6 months, the
or certified labor union may demand negotiations parties may agree to the date of
with its Er for terms and conditions of work retroaction.
coveringEesinthebargainingunitconcerned.
Note: This rule applies only if there is an existing
Q:WhatisamultiErbargainingscheme? agreement. If there isno existing agreement, there is
no retroactive effect because the date agreed upon
A: It involves negotiation between and among shallbethestartoftheperiodofagreement.
severalcertifiedlaborunionsandErs.
Art. 253A on retroactivity does not apply if the
Q:WhatisthedurationofaCBA? provisions were imposed by the SLE by virtue of
arbitration. It applies only if the agreement was

voluntarilymadebytheparties.
A:

1. Withrespecttotherepresentationaspect
Q:MaytheeconomicprovisionsofanexistingCBA
(referstotheidentityandmajoritystatus
be extended beyond the 3 year period as
of the union that negotiated the CBA as
prescribed by law in the absence of a new
the exclusive bargaining representative):
agreement?
5years
2. Withrespecttoallotherprovisions(refers A:Yes.Undertheprincipleofholdover,untilanew
to the rest of the CBA, economic as well CBAhasbeenexecutedbyandbetweentheparties,
as noneconomic provisions other than they are duty bound to keep the status quo and
representationalprovisions):3yearsafter mustcontinueinfullforceandeffectthetermsand
theexecutionoftheCBA
conditionsoftheexistingagreement.Thelawdoes
notprovideforanyexceptionorqualificationasto
Q:WhataretheeconomicprovisionsofaCBA? which of the economic provisions of the existing
agreement are to retain force and effect.
A: Therefore, it must be encompassing all the terms
1. Wages and condition in the said agreement. (New Pacific
2. Familyplanning Timberv.NLRC,G.R.No.124224,Mar.17,2000)
3. Effectivityoftheagreement
4. Other terms and conditions of Q: Mindanao Terminal Company and respondent
employment union has an existing CBA which was about to
expire. Thus, negotiations were held regarding
Q: What are the noneconomic provisions of a certain provisions of the CBA which resulted in a
CBA? deadlock. Thus the union filed a notice of strike.
During the conference called by the NCMB the
A: companyandtheunionwereabletoagreeonall
1. Coverageofthebargainingunit of the provisions of the CBA except for one.
2. Unionsecurityclauses However, the last unresolved provision was
3. Management prerogatives and/or subsequently settled but no CBA was signed.
rights/responsibilitiesofemployees Hence,intherecordsoftheMediationArbiter,all
4. Grievance machinery and voluntary issues were settled before the lapse of the 6
arbitration monthperiodaftertheexpirationoftheoldCBA.
5. Nostrikenolockoutprovision DoesthesigningoftheCBAdeterminethedateit
wasenteredintowithinthe6monthperiod?
Q:Whatistheeffectivityandretroactivitydateof
othereconomicprovisionsoftheCBA? A:No.ThesigningoftheCBAdoesnotdetermine
whethertheagreementwasenteredintowithinthe
A: 6 month period from the date of expiration of the
1. If the CBA is the very first for the old CBA. In the present case, there was already a
bargainingunit,thepartieshavetodecide meeting of the minds between the company and
theCBAeffectivitydate. the union prior to the end of the 6 month period
after the expiration of the old CBA. Hence, such
2. Thosemadewithin6monthsafterdateof meeting of the mind is sufficient to conclude that
expiry of the CBA are subject to anagreementhasbeenreachedwithinthe6month
automatic retroaction to the day period as provided under Art. 253A of the LC.
immediatelyfollowingthedateofexpiry.

148
LABORLAWTEAM:
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LABOR RELATIONS LAW

(MindanaoTerminalandBrokerageServicesInc.,v. Q: Does the agreement violate the 5 year


Confessor,G.R.No.111809,May5,1997) representation limit as provided under Art. 253A
oftheLC?
Q:WhenistheeffectivityofaCBAarbitralaward
concludedbeyond6monthsfromtheexpirationof A:No.Forunderthesaidarticle,therepresentation
theoldCBA? limit of the exclusive bargaining agent applies only
when there is an existing CBA in full force and
A:TheCBAarbitralawardsgranted6monthsfrom effect. In this case, the parties agreed to suspend
theexpirationofthelastCBAshallretroacttosuch the CBA and put in abeyance the limit on
time agreed upon by both the Er and the union. representation.(Riverav.Espiritu,G.R.No.135547,
Absent such agreement as to retroactivity, the Jan.23,2002)
awardshallretroacttothe1stdayafterthe6month
period following the expiration of the last day of b.MandatoryprovisionsoftheCBA
the CBA should there be one. In the absence of a
CBA, the SLEs determination of the date of Q:WhatarethemandatoryprovisionsoftheCBA?
retroactivity as part of his discretionary powers
over arbitral award shall control. (Manila Electric A:
Company v. Quisumbing, G.R. No. 127598, Feb. 22 1. Grievancemachinery
andAug.1,2000) 2. Voluntaryarbitration
3. Wages
Q: PAL was suffering from a worsened financial 4. Hoursofwork
condition resulting to a retrenchment which 5. Familyplanning
downsized its labor force by more than 1/3 6. Ratesofpay
thereby affecting numerous union members. 7. Mutualobservanceclause
Hence, the union wenton strike. The PAL offered
that shares of stock be transferred to its Ees but Note: In addition, the BLR requires the CBA should
the union refused. Thus, PAL claimed it has no includeaclearstatementofthetermsoftheCBA.
alternative left but to close. Hence, the union Ersdutytobargainislimitedtomandatorybargaining
PALEA offered that the CBA be suspended for 10 subjects; as to other matters, he is free to bargain or
yearsandtowaivesomeoftheeconomicbenefits not.
in the CBA provided they remain the certified
bargaining agent. PAL agreed and resumed Q: How are cases arising from the
operations. Is the agreement to suspend the CBA Interpretation or implementation of CBAs
for 10 years abdicated the workers right to handledanddisposed?
bargain?
A: They are disposed through the grievance
A:No.TheprimarypurposeofaCBAistostabilize machinery and if not resolved by the grievance
labormanagement relations in order to create a machinery,throughvoluntaryarbitration.(1995Bar
climateofasoundandstableindustrialpeace.The Question)
assailedagreementwastheresultofthevoluntary
CB negotiations undertaken in the light of severe Q:Whatisgrievance?
financialsituationfacedbyPAL.
A:Itisanyquestionbyeithertheemployerorthe
Q: Is the agreement in conflict with Art. 253A of union regarding the interpretation or
theLC? implementation of any provision of the CBA or
interpretation or enforcement of company
A:No.Thereisnoconflictbetweentheagreement personnelpolicies.(Sec.1[u],RuleI,BookV,IRR)
and Art. 253Aof the LCfor the latter hasa 2fold
purpose namely: a) to promote industrial stability Q: What provisions must the parties include in a
and predictability and b) to assign specific time CBA?
tables wherein negotiations become a matter of
right and requirement. In so far as the first A:
purpose, the agreement satisfies the first purpose. 1. Provisions that will ensure the mutual
Asregardthesecondpurpose,nothinginArt.253A observanceofitstermsandconditions.
prohibits the parties from waiving or suspending 2. A machinery for adjustment and
the mandatory timetables and agreeing on the resolutionofgrievancesarisingfromthe:
remediestoenforcethesame. a. Interpretation/implementation of
theCBAand

149
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UST GOLDEN NOTES 2011

b. Interpretation/ enforcement of daysfromreceipt,VA/paneldesignatedin


company personnel policies. (Art. the CBA shall commence arbitration
260,par.1). proceedings
2. If the CBA does not designate or if the
(1)GrievanceProcedure parties failed to name the VA/panel, the
regional branch of NCMB appoints
Q:Whatisgrievancemachinery? VA/panel

A: It refers to the mechanism for the adjustment (2)VoluntaryArbitration
and resolution of grievances arising from the
interpretation or enforcement of company Q:Whatisvoluntaryarbitration?
personnel policies. It is part of the continuing
processofcollectivebargaining(CB). A: It refers to the mode of settling labor
managementdisputesbywhichthepartiesselecta
Note: It is a must provision in any CBA and no competent,trainedandimpartialthirdpersonwho
collectiveagreementcanberegisteredintheabsence shall decide on the merits of the case and whose
ofsuchprocedure. decision is final and executory. (Sec.1 [d], Rule II,
NCMBRevisedProceduralGuidelinesintheConduct
Q:Howisgrievancemachineryestablished? ofVoluntaryArbitrationProceedings,Oct.15,2004)

A: Q: What is the difference between compulsory
1. Agreementbytheparties andvoluntaryarbitration?
2. Agrievancecommitteecomposedofat
least 2 representatives each from the A: Compulsory arbitrationisa systemwherebythe
members of the bargaining unit and the parties to a dispute are compelled by the
employer, unless otherwise agreed upon government to forego their right to strike and are
bythepartiesshallbecreatedwithin10 compelledtoaccepttheresolutionoftheirdispute
daysfromthesigningofCBA rd
through arbitration by a 3 party. The essence of
arbitrationremainssincearesolutionofadisputeis
Note: Although Art. 260 of the Labor Code mentions arrived at by resort to a disinterested third party
parties to a CBA, itdoes not meanthata grievance whose decision is final and binding on the parties,
machinerycannotbesetupinaCBAlessenterprise.In but in compulsory arbitration, such a third party is
anyworkplacewheregrievancecanarise,agrievance normallyappointedbythegovernment.
machinerycanbeestablished.

Under voluntary arbitration, on the other hand,


Q:Whatisgrievanceprocedure?
referral of a dispute by the parties is made,

pursuant to a voluntary arbitration clause in their


A: It refers to the internal rules of procedure
collective agreement, to an impartial third person
establishedbythepartiesintheirCBAwhichusually
for a final and binding resolution. Ideally,
consists of successive steps starting at the level of
arbitration awards are supposed to be complied
thecomplainantandhisimmediatesupervisorand
withbybothpartieswithoutdelay,suchthatonce
ending, when necessary, at the level of the top
an award has been rendered by an arbitrator,
union and company officials and with voluntary
nothing is left to be done by both parties but to
arbitrationastheterminalstep.
complywiththesame.Afterall,theyarepresumed

to have freely chosen arbitration as the mode of


Q: What will happen to grievances submitted to
settlement for that particular dispute. Pursuant
the grievance machinery which are not settled
thereto, they have chosen a mutually acceptable
within 7 calendar days from the date of their
arbitrator who shall hear and decide their case.
submission?
Above all, they have mutually agreed to be bound

by said arbitrator's decision. (Luzon Devt Bank v.


A:Theyshallautomaticallybereferredtovoluntary
AssnofLuzonDevtBankEes,G.R.No.120319,Oct.
arbitration prescribed in the CBA. (Art. 260, par.2,
6,1995)
LaborCode)

Q:Whatisthebasisforvoluntaryarbitrationand
Eitherpartymayservenoticeupontheotherofits
itsrationale?
decisiontosubmittheissuetovoluntaryarbitration

(VA):
A: The State shall promote the principle of shared
1. If the party upon whom such notice is
responsibilitybetweenworkersandemployersand
served fails/refuses to respond within 7

150
LABORLAWTEAM:
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MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM

LABOR RELATIONS LAW

the preferential use of voluntary modes in settling


disputes, including conciliation, and shall enforce A:
their mutual compliance therewith to foster 1. Failuretomeetandconvene
industrialpeace(Sec.3,Art.XIII,1987Constitution). 2. Evading the mandatory subjects of
bargaining.
(3)NoStrikeNoLockoutClause 3. Bad faith in bargaining (boulwarism),
including failure to execute the CBA if
Q:WhendoestheNoStrikeNoLockoutclausein requested
theCBAapply? 4. GrossviolationoftheCBA
5. SurfaceBargaining
A: The no strikeno lockout clause in the CBA 6. Blueskybargaining
applies only to economic strikes. It does not apply
toULPstrikes.Hence,ifthestrikeisfoundedonan Note:ViolationsofCBA,exceptthosewhicharegross
unfair labor practice of the employer, a strike in character, shall no longer be treated as ULP but a
declared by the union cannot be considered a grievanceunderCBA.(Art.261,LC,Silvav.NLRC,G.R.
violationofthenostrikeclause.(MasterIronLabor No.110226,June191997)
Unionv.NLRC,G.R.No.92009,Feb.17,1993)
Q:Whenisthererefusaltobargain?
(4)LaborManagementCouncil
A:Aunionviolatesitsdutytobargaincollectivelyby
Q: What is the role of the Department of Labor entering negotiations with a fixed purpose of not
and Employment in the creation of Labor reachinganagreementorsigningacontract.
ManagementCouncils?
Q:Whatisfeatherbedding/makeworkactivities?
A:TheDepartmentshallpromotetheformationof
labormanagement councils in organized and A:Itreferstothepracticeoftheunionoritsagents
unorganized establishments to enable the workers incausingorattemptingtocauseanemployer(Er)
to participate in policy and decisionmaking to pay or deliver or agree to pay or deliver money
processes in the establishment, insofar as said or other things of value, in the nature of an
processes will directly affect their rights, benefits exaction, for services which are not performed or
and welfare, except those which are covered by not to be performed, as when a union demands
collective bargaining agreements or are traditional that the Er maintain personnel in excess of the
areasofbargaining. lattersrequirements.

Note:Itisnotfeatherbeddingiftheworkisperformed
The Department shall promote other labor nomatterhowunnecessaryoruselessitmaybe.
management cooperation schemes and, upon its
own initiative or upon the request of both parties, Q:Whatisthesweetheartdoctrine?
may assist in the formulation and development of
programs and projects on productivity, A:ItiswhenaLOasksfororacceptsnegotiationsor
occupational safety and health, improvement of attysfeesfromemployersaspartofthesettlement
quality of work life, product quality improvement, ofanyissueinCBoranyotherdispute.
andothersimilarschemes.(Sec.1,RuleXXI,BookV,
IRR) Note:TheresultingCBAisconsideredasasweetheart
contractaCBAthatdoesnotsubstantiallyimprove
Q: How is the representative in the Management theemployeeswagesandbenefitsandwhosebenefits
CouncilSelected? arefarbelowthanthoseprovidedbylaw.

A: In organized establishments, the workers Q:Whatisblueskybargaining?
representatives to the council shall be nominated
by the exclusive bargaining representative. In A: It is defined as making exaggerated or
establishments where no legitimate labor unreasonableproposals.
organizationexists,theworkersrepresentativeshall
Note:Whetherornottheunionisengagedinbluesky
beelecteddirectlybytheemployeesatlarge.(Sec.
bargainingisdeterminedbytheevidencepresentedby
2,RuleXXI,BookV,IRR)
the union as to its economic demands. Thus, if the

unionrequiresexaggeratedorunreasonableeconomic
c.ULPinCollectiveBargaining demands,thenitisguiltyofULP.(StandardChartered
Bankv.Confessor,G.R.No.114974,June16,2004)
Q:WhataretheformsofULPinbargaining?

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UST GOLDEN NOTES 2011

Q:Whendoesboulwarismoccur? 1. Thecircumstancesunderwhichtheywere
uttered
A: It occurs when employer (Er) directly bargains 2. The history of the particular Ers labor
withtheemployee(Ee)disregardingtheunion;the relationsorantiunionbias
aim was to deal with the labor union through Ees 3. Their connection with an established
ratherthanwiththeEesthrutheunion.Ersubmits collateralplanofcoercionorinterference.
itsproposalsandadoptsatakeitorleaveitstand. (The Insular Life AssuranceNATU v. The
Insular Life Co. Ltd, G.R. No.L25291, Jan.
d.UnfairLaborPractice 30,1971)

(1)ULPofEmployers Q: Phil. Marine Officers Guild (PMOG) is a union
representing some of Philsteams officers and
Q: What are the ULP that may be committed by CebuSeamensAssociation(CSA)isanotherunion
Ers? representing some of Philsteams officers. PMOG
sentalettertoPhilsteamrequestingforCBbutthe
A: company asked the former to first prove it
1. Interference represents the majority. Simultaneously,
2. Yellowdogcondition Philsteam interrogated its captains, deck officers
3. Contractingout andengineerswhileCSAlikewisesentitsdemands
4. Companyunionism to Philsteam. The company recognized CSA as
5. Discrimination for or against union representingthemajorityandenteredintoaCBA.
membership Hence PMOG declared a strike. PMOG was
6. Discriminationbecauseoftestimony subjected to vilification and Philsteams pier
7. Violationofdutytobargain superintendent participated in the solicitation of
8. Paidnegotiation membership for CSA. Is the company guilty of
9. GrossviolationofCBA ULP?

(a)Interference A: Yes. Although the company is free to make
interrogationsastoitsEesunion,thesameshould
Q:Whatismeantbyinterference? beforalegitimatepurposeandmustnotinterfere
withtheexerciseofselforganizationotherwiseitis
A:TheactofErtointerferewith,restrainorcoerce considered as ULP. Moreover, Philsteams
Eesintheexerciseoftheirrighttoselforganization. supervisoryEesstatementthatPMOGisamoney
makingunion,whichismadetoappeartobesaid
Q:Whatisthetestofinterference? in behalf of the union and the participation of the
companys pier superintendent in soliciting
A:WhethertheErhasengagedinconductwhich,it membership for the competing union, is ULP for
mayreasonablybesaid,tendstointerferewiththe interfering with the exercise of the right to self
freeexerciseoftheEesrighttoselforganization. organization. (Philsteam and Navigation v.
Philippine Marine Officers Guild, G.R. Nos. L20667
Note:DirectevidencethatanEewasinfactintended andL20669,Oct.29,1965)
orcoercedbythestatementsofthreatsoftheErisnot
necessaryifthereisareasonableinterferencethatthe Q:Whatisalockout?
antiunion conduct of the Er does have an adverse

effect on selforganization and CB. (The Insular Life
A: It means any temporary refusal of an Er to
AssuranceNATUv. The InsularLife Co.Ltd, G.R.No.L
furnish work as a result of an industrial or labor
25291,Jan.30,1971)
dispute.(Art.212[p])


Q:Whatisthetotalityofconductdoctrine?
Q:WhendoeslockoutorclosureamounttoULP?


A:ItstatesthattheculpabilityofErsremarksisto
A: A lockout, actual or threatened, as a means of
be evaluated not only on the basis of their
dissuading the Ees from exercising their rights is
implications, but against the background of and in
clearly an ULP. However, to hold an Er guilty, the
conjunctionwithcollateralcircumstances.
evidence must establish that the purpose was to

interferewiththeEesexerciseoftheirrights.
Under this doctrine, expressions of opinion by an

Er,thoughinnocentinthemselves,frequentlywere
Q: What are other examples of acts of
heldtobeULPbecauseof:
interference?

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LABOR RELATIONS LAW


A: Q:Whatarethe3usualprovisionsunderayellow
1. Outrightandunconcealedintimidation dogcontract?
2. In order that interrogation would not be
deemedcoercive: A:
a. The Er must communicate to the Ee 1. ArepresentationbytheEethatheisnota
thepurposeofquestioning memberofalaborunion.
b. Assure him that no reprisal would 2. A promise by the Ee not to join a labor
takeplace union.
c. ObtainEeparticipationvoluntarily 3. A promise by the Ee that upon joining a
d. Must be free from Er hostility to laborunion,hewillquithisemployment.
unionorganization
e. Mustnotbecoerciveinnature (c)ContractingOut
3. IntimidatingexpressionsofopinionbyEr
Q:WhatiscontractingoutasaformofULP?
Note: An Er who interfered with the right to self
organization before a union is registered can be held A: It is to contract out services or functions being
guilty of ULP. (Samahan ng mga Manggagawa sa performed by union members when such will
BandolinoLMLC v. NLRC, G.R. No. 125195, July 17, interferewith,restrainorcoerceEesintheexercise
1997) oftheirrightstoselforganization.

It is the prerogative of the company to promote, Q: Does it mean that an Er cannot contract out
transfer or even demote its Ees to other positions work?
when the interests of the company reasonably
demand it. Unless there are circumstances which
A:
directlypointtointerferencebythecompanywiththe
GR:ContractingoutservicesisnotULPperse.
Ees right to selforganization, the transfer of an Ee

shouldbeconsideredaswithintheboundsallowedby
law. (RubberworldPhils.v.NLRC, G.R.No.75704, July XPNs:ItisULPonlywhentheff.exists:
19,1989) 1. The services contracted out are being
performedbyunionmembers;and
(b)YellowDog 2. Such contracting out interferes with,
restrains,orcoerceEesintheexerciseof
Q:Whatisayellowdogcondition? theirrighttoselforganization.

A:Itistorequireasaconditionofemploymentthat Note: When the contracting out is being done for
business reasons such as decline in business,
apersonoranEeshallnotjoinalabororganization
inadequacyofequipmentortoreducecost,thenitisa
orshallwithdrawfromonetowhichhebelongs.
validexerciseofmanagementprerogative.


Q:Whatisayellowdogcontract?
Q: Company "A" contracts out its clerical and

janitorial services. In the negotiations of its
A:Itisapromiseexactedfromworkersascondition
CBA,theunioninsistedthatthecompanymay no
of employment that they are not to belong to or
longer engage in contracting out these types of
attempt to foster a union during their period of
services, which services the union claims to be
employment.
necessaryinthecompany'sbusiness,without

prior consultation. Is the union's stand valid or
Q:Isyellowdogcontractvalid?
not?Forwhatreason(s)?


A:No.Itisnullandvoidbecause:
A: The union's stand is not valid. It is part of
1. It is contrary to public policy for it is
management prerogative to contract out any
tantamounttoinvoluntaryservitude.
work,task,joborprojectexceptthatitisanULP to
2. It is entered into without consideration
contract out services or functions performed
for Ees in waiving their right to self
by union members when such will interfere
organization.
with,restrainorcoerceEesintheexerciseoftheir
3. Ees are coerced to sign contracts
rights to selforganization. (Art.248[c]oftheLC).
disadvantageoustotheirfamily.
(2001BarQuestion)


Note: This is one of the cases of ULP that may be
Q:Whatisarunawayshop?
committedintheabsenceofanErEerelationship.

153
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UST GOLDEN NOTES 2011

A:Itisanindustrialplantmovedbyitsownersfrom or other support to it or its organizers or


onelocationtoanothertoescapelaborregulations supporters.
or State laws or to discriminate against Ees at the
oldplantbecauseoftheirunionactivities. Q: Why is company unionism/captive unionism a
formofULP?
Q:IsresortingtorunawayshopULP?
A: ItisconsideredULPbecausetheofficerswillbe
A: Yes. Where a plant removal is for business beholdentotheErsandtheywillnotlookafterthe
reasonsbuttherelocationishastenedbyantiunion interestofwhomtheyrepresent.
motivation, the early removal is ULP. It is
immaterialthattherelocationisaccompaniedbya (e)Discriminationfororagainstunionmembership
transfer of title to a new employer (Er) who is an
alteregooftheoriginalEr. Q: What is meant by discrimination as a form of
ULP?
(d)CompanyUnionism
A:Itistodiscriminateinregardtowages,hoursof
Q:Whatisacompanyunion? work and other terms and conditions of
employment in order to encourage or discourage
A: Any labor organization whose formation, membershipinanylabororganization.
functionoradministrationhasbeenassistedbyany
actdefinedasULP.(Art.212[i]) Q:WhenisadischargeofanEediscriminatory?

Q:Whataretheformsofcompanyunionism? A: For the test of determining whether or not a
discharge is discriminatory, it is necessary that the
A: underlyingreasonforthedischargebeestablished.
1. Initiationofthecompanyunionideaby:
a. Outright formation by Er or his The fact that a lawful cause for discharge is
representatives available is not a defense where the Ee is actually
b. Eeformationonoutrightdemandor discharged because of his union activities. If the
influencebyErand discharge is actually motivated by lawful reason,
c. Manageriallymotivatedformationby thefactthattheEeisengagedinunionactivitiesat
Ees thetimewilllieagainsttheErandpreventhimfrom
the exercise of business judgment to discharge an
2. Financialsupporttotheunionby: Eeforcause.(Phil.MetalFoundriesInc.v.CIR,G.R.
a. Erdefraysunionexpenses Nos.L3494849,May15,1979)
b. Pays attys feesto the attorneywho
drafted the Constitution or bylaws Q:Jobohas3hotels,theTaalVistaLodge,Manila
oftheunion. Hotel and the Pines Hotel. Among the 3, Pines
HotelhadmoreEesandtheonlyonewithalabor
3. Er encouragement assistance organization(LO).Whenthebonuswasdistributed
Immediately granting of exclusive among the 3 hotels, Pines Hotel Ees received the
recognition as bargaining agent without leastamountcomparedtotheEesofManilaHotel
determining whether the union and Taal Vista Lodge. Did the company commit
representsthemajorityoftheemployees ULP?

4. Supervisory assistance Soliciting A:Yes.Thesharingofthebonusesisdiscriminatory
membership, permitting union activities andsuchconstituteULP.ThePinesHotelEeswould
during work time or coercing Ees to join bereceivingfewerbonusescomparedtotheEesof
the union by threats of dismissal or Taal Vista Lodge and Manila Hotel where neither
demotion has a LO nor does the complainant union has a
member. Taking into account that Pines Hotel is
Q: What is meant by the act of company realizingprofitcomparedtothatofTaalVista.Same
dominationofunion? analogyappliesinthesalaryincrease.(ManilaHotel
Co. v. Pines Hotel Ees Assn, G.R. No.L30139, Sep.
A: This is to initiate, dominate, assist or otherwise 28,1972)
interfere with the formation or administration of
any labor organization including giving of financial Q:Whencantherebeavaliddiscrimination?

154
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LABOR RELATIONS LAW

A: The employer is not guilty of ULP if it merely Notwithstanding the fact that the dismissal was at
complies in good faith with the request of the theinstanceofthefederationandthatitundertook
certified union for the dismissal of employees toholdthecompanyfreefromanyliabilityresulting
expelled from the union pursuant to the union fromsuchdismissal,thecompanymaystillbeheld
securityclauseintheCBA.(Sorianov.Atienza,G.R. liable if it was remiss in its duty to accord the
No.L68619,Mar.16,1989) wouldbe dismissed Ees their right to be heard on
thematter.
Q:Aprofitsharingschemewasintroducedbythe
companyforitsmanagersandsupervisorswhoare Q: Mabeza and her coEes were asked by the
notmembersoftheunion,hencedonotenjoythe company to sign an affidavit attesting to the
benefitsoftheCBA.Therespondentunionwanted latters compliance with pertinent labor laws.
toparticipatewiththeschemebutwasdeniedby Mabeza signed the affidavit but refused to swear
the company due to the CBA. Subsequently the toitsveracitybeforetheCityprosecutor.Mabeza
company distributed the profit sharing to the then filed a LOA which was denied by
manager, supervisors and other nonunion management. After sometime, she attempted to
memberEes.Asaresulttheunionfiledanoticeof returntoworkbutthecompanyinformedhernot
strike alleging ULP. Is the nonextension of the toreportforworkandcontinuewithherunofficial
profit sharing scheme to union members leave.DidthecompanycommitULP?
discriminatoryandanULP?
A: Yes. The act of compelling an Ee to sign an
A: No. There can be no discrimination when the instrument indicating the Ers compliance with
Eesarenotsimilarlysituated.Thesituationofunion Laborlawswhichthecompanymighthaveviolated
members is different and distinct from nonunion together with the act of terminating or coercing
members because only union members enjoy the those Ees to cooperate is an act of ULP. This is
benefit under the CBA. The profit sharing scheme analogous with Art. 248 (f) of the LC which
was extended to those who do not enjoy the provides: to dismiss, discharge or otherwise
benefits of the CBA. Hence, there is no prejudice or discriminate against an Ee for having
discriminationandULPisnotcommitted.(Wiseand given or being about to give testimony under this
Co.,Inc.v.NLRC,G.R.No.L87672,Oct.13,1989) Code. For in not giving a positive testimony in
favoroftheEr,Mabezareservednotonlyherright
Q: Is dismissal of an Ee pursuant to a union to dispute the claim but also to work for better
securityclauseaformofULP? terms and condition. (Mabeza v. NLRC, G.R No.
118506,April18,1997)
A: No. Union security clauses in the CBA, if freely
andvoluntarilyenteredinto,arevalidandbinding. (f)ViolationofDutytoBargain
Thus, the dismissal of an Ee by the company
pursuant to a labor unions demand in accordance Q: What is violation of the duty to bargain as a
with a union security agreement does not kindofULP?
constitute ULP. (Malayang Samahan ng mga
Manggagawa sa M. Greenfield v. Ramos, G.R. No. A: This is the act of violating the duty to bargain
113907,Feb.28,2000) collectivelyasprescribedintheLC.

A union member who is employed under an Q:WhataretheformsofULPinbargaining?


agreement between the union and his Er is bound
by the provisions thereof since it is a joint and A:
several contract of the members of the union 1. Failureorrefusaltomeetandconvene
enteredintobytheunionastheiragent.(Manalang 2. Evading the mandatory subject of
v.ArtexDevt,G.R.No.L20432,Oct.30,1967) bargaining
3. Badfaith(BF)bargaining,includingfailure
Q: Is notice and hearing required in case an Ee is toexecutetheCBAifrequested
dismissedpursuanttoaunionsecurityclause? 4. GrossviolationoftheCBA

A: Yes. Although a union security clause in a CBA Note: A companys refusal to make counterproposal,
may be validly enforced and dismissal pursuant to if considered in relation to the entire bargaining
thereto may likewise be valid, this does not erode process, may indicate BF and this is especially true
the fundamental requirement of due process. The where the unions request for a counter proposal is
reason behind the enforcement of union security left unanswered. (Kiok Loy v. NLRC, G.R. No. L54334,
clauses which is the sanctity and inviolability of Jan.22,1986)
contractscannoterodeonesrighttodueprocess.

155
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UST GOLDEN NOTES 2011

Q:WhataretheexamplesofULPinbargaining? beingamajorityunion.(1997BarQuestion)

A: Q:Whatissurfacebargaining?
1. Delaying negotiations by discussing
unrelatedmatters A: It is the act of going through the motions of
2. Refusaltoacceptrequesttobargain negotiating without any legal intent to reach an
3. Rejecting a unions offer to prove its agreement. It involves the question of whether or
majorityclaim nottheErsconductdemonstratesanunwillingness
4. Shutdowntoavoidbargaining to bargain in good faith or is merely hard
5. Engaginginsurfacebargaining bargaining. (Standard Chartered Bank v. Confessor,
G.R.No.114974,June16,2004)
Q: Balmar Farms Ees Association (BFEA) is
affiliated with Associated Labor Union (ALU). ALU Note: Occurs when the Er constantly changes its
won in the certification election held in the positionovertheagreement.
company. Thus, ALU sent its proposal for a CBA,
(g)PaidNegotiation
butthecompanyrefusedtoactonitallegingthat
BEA is the sole and exclusive bargaining
Q:Whatismeantbypaidnegotiationasaformof
representativeandthatBFEAthroughitspresident
ULP?
had sent a letter informing the company of its
disaffiliation with ALU. Is the company guilty of A:Itistheactoftheemployertopaynegotiationor
ULPforrefusingtobargaincollectively? attys fees to the union or its officers or agents as
part of the settlement of any issue in collective
A: Yes. ALU is the certified exclusive bargaining bargainingoranyotherdispute.
representative after winning the certification
election. The company merely relied on the letter (h)GrossViolationofCBA
of disaffiliation by BFEAs president without proof
and consequently refusing to bargain collectively Q: When is the violation of CBA considered as
constitutes ULP. Such refusal by the company to ULP?
bargain collectively with the certified exclusive
bargainingrepresentativeisaviolationofitsdutyto A:OnlywhentheviolationisgrossTheremustbe
collectively bargain which constitutes ULP. (Balmar a flagrant and/or malicious refusal to comply with
Farmsv.NLRC,G.R.No.73504,Oct.15,1991) theeconomicprovisionoftheCBA.

Q: The Kilusang Kabisig, a newlyformed labor Note:AlltheULPactsmusthavearelationtotheEes


union claiming to represent a majority of the exercise of their right to selforganization. Antiunion
workers in the Microchip Corp., proceeded to orantiorganizationmotivemustbeprovedbecauseit
presentalistofdemandstothemanagementfor isadefinitionalelementofULP.
purposes of collective bargaining (CB). The
Microchips Corp.,amultinationalcorp.engagedin If violation is not gross, it is not ULP but a grievance
the production of computer chips for export, under CBA. The grossly violate phrase is an
amendmentbyR.A.6715.
declined to talk with the union leaders,
alleging that they had not as yet presented any
Q:AcomplaintforULPwasfiledbyaprosecutorof
proof of majority status. The Kilusang Kabisig
the CIR against Alhambra company, upon the
then charged Microchip Corp. with ULP, and
charges of the union that 15 of its members
declared a "wildcat" strike wherein means of
employedasdriversandhelpersarediscriminated
ingress andegress wereblocked and remote and
for being deprived of the benefits under the CBA
isolated acts of destruction and violence were
with no justifiable reason other than union
committed. Was the company guilty of an ULP
membership.IsthecompanyguiltyofULP?
when it refused to negotiate with the Kilusang
Kabisig?
A: Yes. The refusal to extend the benefits and
privileges under the CBA to Ees constitutes ULP.
A: No.ItisnotanULPnottobargainwithaunion
Failure on the part of the company to live up in
which has not presented any proof of its majority
good faith to the terms of the CBA is a serious
status. The LC imposes on an Er the duty to
violation of the duty to collectively bargain which
bargain collectively only with a legitimate labor
againamountstoULP.The15driversandhelpers
organizationdesignatedorselectedbythemajority
are found to be Ees of the company, hence, the
oftheEesinanappropriateCBunit.ItisnotaULP
benefit and privileges under the CBA should be
for an Er to ask a union requesting to bargain
collectively that such union first show proof of its

156
LABORLAWTEAM:
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LABOR RELATIONS LAW

extendedtothem.(AlhambraIndustriesv.CIR,G.R. nature of an exaction, for services which


No.L25984,Oct.30,1970) are not performed or not to be
performed, including the demand for fee
Q:WhatarethereliefsavailableinULPcases? forunionnegotiations
5. Toaskfororacceptnegotiationsorattys
A:Thefollowingreliefsmaybeavailedof: feesfromErsaspartofthesettlementof
1. Ceaseanddesistorder any issue in collective bargaining (CB) or
2. Affirmativeorder anyotherdisputeor
3. Courtmayordertheemployertobargain. 6. ToviolateaCBA.
CBAmaybeimposed.
4. Strikebyunionmembers Q:IsinterferencebyaLOanULP?

Note:ULPcasesarenotsubjecttocompromiseinview A:No,becauseinterferencebyaLOintheexercise
of the public interest involve. The relation between of the right to organize is itself a function of self
capital and labor is not merely contractual. They are organizing.
impressed with public interest that labor contracts
mustyieldtocommongood. Q:Whatareexamplesofinterferencewhichdoes
notamounttoULP?
Q: Is the commission of an ULP by an employer
subject to criminal prosecution? A:
1. Union campaigns for membership even
A: Yes,becauseULPsarenotonlyviolationsofthe amongmembersofanotherunion
civil rights of both labor and management but are 2. Filingbyaunionofapetitiontodislodge
alsocriminaloffensesagainstthe State which shall anincumbentbargainingunion
be subject to prosecution and punishment. (Art. 3. A bargaining union, through a union
247LC;SeealsoB.P.Blg.386as amendedbyR.A. security clause, requires an incoming
6715).However,thecriminalaspectcanonlybe employeetojointheunion.
filed when the decision of the labor tribunals,
finding the existence of ULP, shall have become Q:MayaunioncoerceEestojoinastrike?
finalandexecutory.(2005BarQuestion)
A:No.Aunionviolatesthelawwhen,torestrainor
(2)ULPofLaborOrganizations
coercenonstrikersfromworkingduringthestrike,
it:
Q:WhataretheULPofLOs?

A: It shall be ULP for a LO, its officers, agents or 1. Assaultsorthreatenstoassaultthem
representatives: 2. Threatensthemwiththelossoftheirjobs
3. Blockstheiringresstooregressfromthe
1. To restrain or coerce Ees in the exercise plant
of their rights to selforganization. 4. Damages nonstrikers automobiles or
However, a LO shall have the right to forcesthemoffthehighway
prescribeitsownruleswithrespecttothe 5. Physicallypreventingthemfromworking
acquisitionorretentionofmembership 6. Sabotages the Ers property in their
2. To cause or attempt to cause an Er to presence, thereby creating an
discriminate against an Ee, including atmosphereoffearorviolence
discrimination against an Ee with respect 7. Demonstrates loudly in front of a non
to whom membership in such strikers residence with signs and shouts
organization has been denied or to accusingthenonstrikerofscabbing
terminateanEeonanygroundotherthan 8. Holdingthenonstrikeruptoridicule
the usual terms and conditions under 9. Seekingpubliccondemnationofthenon
which membership or continuation of striker
membership is made available to other
members Q:Whatisacaseofunioninduceddiscrimination
3. To violate the duty, or refuse to bargain bylabororganization(LO)?
collectivelywiththeEr,provideditis the
representativeoftheEes A: This pertains to the arbitrary use of union
4. TocauseorattempttocauseanErtopay securityclause.
or deliver or agree to pay or deliver any
money or other things of value, in the A union member may not be expelled from the
union, and consequentlyfrom his job, for personal

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UST GOLDEN NOTES 2011

andimpetuousreasonsorforcausesforeigntothe
closed shop agreement. (Manila Mandarin Ees A:Yes,assumingthattheyactedintheirindividual
Unionv.NLRC,G.R.No.76989,Sep.29,1987) capacities when they wrote the letter, they were
nonethelessprotected,fortheywereengagedina
Laborunionsarenotentitledtoarbitrarilyexclude concertedactivity,intheirrightofselforganization
qualified applicants for membership and a closed that includes concerted activity for mutual aid and
shop applicants provision will not justify the protection.Anyinterferencemadebythecompany
employerindischarging,oraunionininsistingupon willconstituteasULP.
thedischargeofanemployeewhomtheunionthus
refuses to admit to membership without any Thejoininginprotestsordemands,evenbyasmall
reasonable ground thereof. (Salunga v. CIR, G.R. group of Ees, if in furtherance of their interests as
No.L22456,Sep.27,1967) such is a concerted activity protected by the
IndustrialPeaceAct.Itisnotnecessarythatunion
Q:Whenisthererefusaltobargain? activitybeinvolvedorthatcollectivebargainingbe
contemplated. (Republic Savings Bank v. CIR, G.R.
A:Aunionviolatesitsdutytobargaincollectivelyby No.L20303,Oct.31,1967)
entering negotiations with a fixed purpose of not
reachinganagreementorsigningacontract. Q:Whatisastrike?

3.RIGHTTOPEACEFULCONCERTEDACTIVITIES A:Itmeansanytemporarystoppageofworkbythe
concerted action of employees as a result of an
Q: What is the constitutional basis of strikes,
industrialorlabordispute.(Sec.1[uu],RuleI,Book
lockoutsandotherconcertedactivities?
V,IRR)

A: The State shall guarantee the rights of all
It shall comprise not only concerted work
workers to selforganization, collective bargaining
stoppages, but also slowdowns, mass leaves,
andnegotiations,andpeacefulconcertedactivities,
sitdowns, attempt to damage, destroy or sabotage
includingtherighttostrikeinaccordancewithlaw
plantequipmentandfacilities,andsimilaractivities.
(Sec.3,Art.XIII,1987Constitution).
(Samahang Manggagawa sa Sulpicion Lines v.
Note: The law does not look with favor upon strikes SulpicioLines,Inc.,G.R.No.140992,Mar.25,2004)
and lockouts because of their disturbing and
perniciouseffectsuponthesocialorderandthepublic Q:Whatisthepurposeofastrike?
interests;topreventoravertthemandtoimplement
Sec.6,Art.XIVoftheConstitution,thelawhascreated A: A strike is a coercive measure resorted to by
severalagencies,namely:theBLR,theDOLE,theLabor laborerstoenforcetheirdemands.Theideabehind
Management Advisory Board, and the CIR. (Luzon a strike is that a company engaged in a profitable
Marine Devt Union v. Roldan, G.R. No. L2660, May business cannot afford to have its production or
30,1950) activities interrupted, much less, paralyzed. (Phil.
CanCo.v.CIR,G.R.No.L3021,July13,1950)
Q:Whatisaconcertedaction?
Q:Whatisalockout?
A: It is an activity undertaken by 2 or more
employees,byoneonbehalfoftheothers. A: It means any temporary refusal of an employer
tofurnishworkasaresultofanindustrialorlabor
Q:Areallconcertedactionsstrikes? dispute.(Art.212[p])

A:Notallconcertedactivitiesarestrikes.Theymay
Q:Whatispicketing?
only be protest actions they do not necessarily

cause work stoppage by the protesters. A strike in
A:Itistheactofmarchingtoandfrotheemployers
contrast is always a group action accompanied by
premises which is usually accompanied by the
workstoppage.
display of placard and other signs, making known
thefactsinvolvedinalabordispute.
Q: The Ees wrote and published a letter to the

bank president, demanding his resignation onthe
The right to picket as a means of communicating
grounds of immorality, nepotism, favoritism and
the facts of a labor dispute is a phase of the
discrimination in the appointment andpromotion
freedomofspeechguaranteedbytheConstitution.
ofbankEes.Thebankdismissedthe8Eesonthe
If peacefully carried out, it can not be curtailed
allegedlibelousletter.WeretheEesengagedina
concertedactivity?

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LABOR RELATIONS LAW

evenintheabsenceofErEerelationship.(PAFLUv. Q:Whatisaslowdown?
Cloribel,G.R.No.L25878,Mar.28,1969)
A: It is a method by which ones employees,
Q:Istherighttopicketanabsoluteright? without seeking a complete stoppage of work,
retard production and distribution in an effort to
A: No, while peaceful picketing is entitled to compelcompliancebytheemployerwiththelabor
protectionasanexerciseoffreespeech,thecourts demandsmadeuponhim.
are not without power to confine or localize the
sphere of communication or the demonstration to Q: Does an overtime boycott or work
the parties to the labor dispute, including those slowdown by the employees constitute a strike
with related interests, and to insulate and hence a violation of the CBAs No strike, no
establishments or persons with no industrial lockoutclause?
connectionorhavinginteresttotallyforeigntothe
context of the dispute. (Liwayway Pub., Inc. v. A: Yes, the concept of a slowdown is a "strike on
Permanent Concrete Workers Union, G.R. No. L theinstallmentplan."Itisawillfulreductioninthe
25003,Oct.23,1981) rateofworkbyconcertedactionofworkersforthe
purpose of restricting the output of the employer
Therighttopeacefulpicketingshallbeexercisedby (Er),inrelationtoalabordispute;asanactivityby
the workers with due respect for the rights of which workers, without a complete stoppage of
others.No person engaged in picketing shall work, retard production or their performance of
commit any act of violence, coercion or duties and functions to compel management to
intimidation.Stationary picket, the use of means granttheirdemands.
like placing of objects to constitute permanent
blockade orto effectively close points of entry or Such a slowdown is generally condemned as
exitincompanypremisesareprohibitedbylaw. inherentlyillicitandunjustifiable,becausewhilethe
employees (Ees) "continue to work and remain at
Q:Whoisastrikebreaker? theirpositionsandacceptthewagespaidtothem,"
they at the same time "select what part of their
A: Any person who obstructs, impedes, or allotted tasks they care to perform of their own
interfereswithbyforce,violence,coercion,threats, volition or refuse openly or secretly, to the Er's
or intimidation any peaceful picketing affecting damage, to do other work;" in other words, they
wages, hours or conditions of work or in the "work on their own terms." (Interphil Laboratories
exercise of the right of selforganization or Ees UnionFFW v. Interphil Laboratories, Inc., G.R.
collectivebargaining.(Art.212[r]) No.142824,Dec.19,2001)

Q:Whatisastrikearea? Q:Whatarethecharacteristicsofastrike?
A:
A:Itmeanstheestablishment,warehouses,depots, 1. ExistenceofanErEerelationship
plants or offices, including the sites or premises 2. Existenceofalabordispute
usedasrunawayshops,oftheErstruckagainst,as 3. Employment relation is deemed to
well as the immediate vicinity actually used by continuealthoughinastateofbelligerent
picketing strikers in moving to and fro before all suspension
points of entrance to and exit from said 4. Temporaryworkstoppage
establishment.(Sec.1[vv],RuleI,BookV,IRR) 5. Workstoppageisdonethroughconcerted
action
Q:Whatisaninternaluniondispute? 6. The striking group is a legitimate labor
organization; in case of a bargaining
A:Itincludesalldisputesorgrievancesarisingfrom deadlock, it must be the employees sole
anyviolationofordisagreementoveranyprovision bargainingrepresentative
oftheconstitutionandbylawsofaunion,including
any violation of the rights and conditions of union Q: PAL dismissed strike leader Capt. Gaston as a
membershipprovidedforinthisLC.(Art.212[q]) result of which the Union resolved to undertake
the grounding of all PAL planes and the filing of
Q:Whatisaboycott? applications for protest retirement of members
whohadcompleted5yearsofcontinuousservice,
A: It is an attempt, by arousing a fear of loss, to and protest resignation for those who had
coerce others, against their will to withhold from rendered less than 5 years of service in the
one denominated unfriendly to labor their company. PAL acknowledged receipt of said
beneficialbusinessintercourse. letters and among the pilots whose protest

159
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UST GOLDEN NOTES 2011

resignation or retirement was accepted by PAL 1. Ifreliefissoughtagainsthimorit,and


wereEnriquezandEcarma. 2. He or it is engaged in the same industry,
trade, craft, or occupation in which such
Before their readmission, PAL required Enriquez disputeoccurs,or
and Ecarma to accept 2 conditions, namely: that 3. Hasadirectorindirectinteresttherein,or
theysignconformitytoPALsletterofacceptance 4. Is a member, officer, or agent of any
of their retirement and or resignation and that associationcomposedinwholeorinpart
theysubmitanapplicationforemploymentasnew of employees or employers engaged in
employees(Ees)withoutprotestorreservation.As suchindustry,trade,craft,oroccupation.
aresultofthistheirseniorityrightswerelost.
Q:LiwaywayPublicationInc.isasecondsublessee
Are the pilots entitled to the restoration of their of a part of the premises of the Permanent
seniorityrights? Concrete Products, Inc. It has a bodega for its
newsprintinthesubletpropertywhichitusesfor
A:No,anEehasnoinherentrighttoseniority.He its printing and publishing business. The daily
hasonlysuchrightsasmaybebasedonacontract, supply of newsprint needed to feed its printing
statute, or an administrative regulation relative plant is taken from its bodega. The Ees of the
thereto. Seniority rights which are acquired by an Permanent Concrete Products Inc. declared a
Ee through longtime employment are contractual strike against their company.The union members
and not constitutional. The discharge of an Ee picketed, stopped and prohibited Liwayways
thereby terminating such rights would not violate trucks from entering the compound to load
the Constitution. When the pilots tendered their newsprintfromitsbodega.
respective retirement or resignation and PAL
immediately accepted them, both parties mutually Does the lower court have jurisdiction to issue a
terminated the contractual employment writ of preliminary injunction considering that
relationship between them thereby curtailing there was a labor dispute between Permanent
whatever seniority rights and privileges the pilots ConcreteProducts,Inc.andtheunion?
hadearnedthroughtheyears.
A:Yes,LiwaywayPublicationInc.isnotinanyway
Q:DoestheactionoftheEesofPALfallunderthe relatedtothestrikingunionexceptforthefactthat
ambitofconcertedactionsprotectedbylaw? it is the sub lessee of a bodega in the companys
compound.
A: No, the pilots mass action was not a strike
because Ees who go on strike do not quit their The business of Liwayway is exclusively the
employment. Ordinarily, the relationship of Er and publication of magazines which has absolutely no
Ee continues until one of the parties acts to sever relation or connection whatsoever with the cause
therelationshiportheymutuallyacttoaccomplish of the strike of the union against their company,
thatpurpose.Astheydidnotassumethestatusof muchlesswiththeterms,conditionsordemandsof
rd
strikers,theirprotestretirement/resignationwas the strikers. Liwayway is merely a 3 person or an
not a concerted activity which was protected by innocent bystander. (Liwayway Pub., Inc. v.
law.(Enriquev.Zamora,G.R.No.L51382,Dec.29, Permanent Concrete Workers Union, G.R. No. L
1986) 25003,Oct.23,1981)

Q:Whatisalabordispute? Q: Because of financial problems, the company
decidedtotemporarilyshutdownitsoperationsat
A: Any controversy or matter concerning terms or the dyeing and finishing division. It notified the
conditions or representation of persons in DOLE of the shutdown. Raymund Tomaroy with
negotiating, fixing, maintaining, changing or 16 members of the union staged a picket in front
arrangingthetermsandconditionsofemployment, ofthecompanyscompound,carryingplacards.He
th
regardlessofwhetherornotthedisputantsstandin demanded a resumption of work and 13 month
the proximate relation of Ers and Ees. (Gold City pay. The company filed a petition to declare the
Integrated Port Services, Inc. v. NLRC, G.R. No. strike illegal. The union argues that they did not
103560,July6,1995) stageastrike,forconsideringthatthedyeingand
finishing division of the company was shut down,
Q: When is a person or entity considered as itcouldnothavecausedaworkstoppage.Wasthe
participatingorinterestedinalabordispute? actionoftheunionastrike?

A:

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LABOR RELATIONS LAW

A:Yes,theconcertedeffortsofthemembersofthe existenceoftheunionis
union and its supporters caused a temporary work threatened.Itmuststillobserve
stoppage.Theallegationthattherecanbenowork themandatory7daystrikeban
stoppagebecausetheoperationinthedivisionhad periodbeforeitcanstagea
been shut down is of no consequence. It bears validstrike
stressing that the other divisions were fully
operational. (Bukluran ng Manggagawa sa Q:Whatarethedifferentformsofstrike?
Clothman Knitting Corp. v. CA, G.R. No. 158158,
Jan.17,2005)
A:
1. Legal Strikeone called for a valid purpose
a.FormsofConcertedActivities
and conducted through means allowed by
Q:Whatarethetypesofstrike? law.
2. Illegal Strikeone staged for a purpose not
A: recognizedbylaw,orifforavalidpurpose,
1. Economic strike used to secure the conducted through means not sanctioned
economic demands such as higher wages bylaw.
and better working conditions for the 3. EconomicStrikeonestagedbyworkersto
workers forcewageorothereconomicconcessions
2. ULP strike protest against ULP of from the employer which he is not
management required by law to grant
(Consolidated Labor Association
Q:Distinguishbetweenaneconomicstrikeandan of the Phil. vs. Marsman, G.R. No. L
ULPstrike. 17038,July31,1964)
4. ULPStrikeonecalledtoprotestagainstthe
A: employers acts of unfair practice
ECONOMICSTRIKE ULPSTRIKE enumerated in Article 248 of the Labor
Astonature Code, as amended, including gross
Involuntarystrike;theLO is violation of the collective bargaining
Voluntarystrike forcedtogoonstrikebecause agreement(CBA)andunionbusting.
becausetheEewill oftheULPcommittedagainst 5. Slow Down Strikeone staged without the
declareastriketo thembytheEr.Itisanactof workers quitting their work but by merely
compel selfdefensesincetheEesare slackening or by reducing their normal
managementto beingpushedtothewalland workoutput.
grantitsdemands theironlyremedyistostagea 6. WildCat Strikeone declared and staged
strike without filing the required notice of strike
Whowillinitiate and without the majority approval of the
TheCBagentof recognizedbargainingagent.
theappropriate 7. Sit Down Strikeone where the workers
EithertheCBagentortheLLOin
bargainingunitcan stop working but do not leave their place
behalfofitsmembers
declarean ofwork.
economicstrike
Astothecoolingoffperiod b.Whomaydeclareastrikeorlockout
30daysfrom Q:Whomaydeclareastrikeorlockout?
noticeofstrike
beforethe A:
15daysfromthefilingofthe
intendeddateof 1. Any certified or duly recognized
noticeofstrike
actualstrike bargainingrepresentativemaydeclarea
subjecttothe7
strike in cases of bargaining deadlock
daystrikeban
and unfair labor practice. Likewise, the
Astotheexceptiontothecoolingoffperiod
employer may declare a lockout in the
Noexception Thecoolingoffperiodmaybe
samecases.
mandatory dispensedwith,andtheunion
maytakeimmediateactionin
2. In the absence of a certified or duly
Note:noticeof caseofdismissalfrom recognized bargaining representative,
strikeandstrike employmentoftheirofficers any legitimate labor organization in the
votemaybe dulyelectedinaccordancewith establishment may declare a strike but
dispensedwith; theunionsconstitutionandby only on the ground of unfair labor
theymaystrike laws,whichmayconstitute practice. (Section 2, Rule XIII Book V,
immediately unionbustingwherethe

161
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UST GOLDEN NOTES 2011

Omnibus Rules Implementing The Labor Incaseofdismissalfromemploymentof


Code,asamended). unionofficerswhichmayconstituteunion
busting, the time requirement for the
filing of the Notice of Strike shall be
c.Requisitesforavalidstrike/lockout
dispensed with but the strike vote
requirement, being mandatory in
Q:Whataretherequisitesofalawfulstrike/ character, shall in every case be
lockout? compliedwith.

A: The requirements for a valid strike or
7. Thedisputemustnotbethesubjectofan
lockoutareasfollows:
assumption of jurisdiction by the

President or the Secretary of Labor and
1. Itmustbebasedonavalidandfactual
Employment, a certification for
ground;
compulsory arbitration, or submission to

compulsoryorvoluntaryarbitrationnora
2. A strike or lockout NOTICE shall be filed
subject of a pending case involving the
with the National Conciliation and
samegroundsforthestrikeorlockout.
MediationBoard(NCMB)atleast15days
before the intended date of the strike or
lockout if the issues raised are unfair Q:Whatarethevalidgroundsfordeclaringa
labor practices, or at least 30 days strikeorlockout?
beforethe intended date thereof if the
issueinvolvesbargainingdeadlock. A: The law recognizes 2 grounds for the valid
exerciseoftherighttostrikeorlockout,namely:
3. Incasesofdismissalfromemploymentof
union officers duly elected in accordance 1. Collective Bargaining Deadlock (CBD)
with the union constitution and bylaws, economic;
which may constitute UNION BUSTING 2. UnfairLaborPractice(ULP)political
where the existence of the union is
threatened,the15daycoolingoffperiod Note:Itispossibletochangeaneconomicstrikeintoa
shall not apply and the union may take ULP strike. (Consolidated Labor Assn of the Phils. v.
actionimmediatelyafterthestrikevoteis MarsmanandCo.,G.R.No.L17038,July31,1964)
conducted and the result thereof
submitted to the Department of Labor Violations of CBA must be gross to be considered as
andEmployment. ULP.

4. A strike must be approved by a majority Q:Whatisconversiondoctrine?
vote of themembers of the Union and a
lockout must be approved by a majority A: It is when a strike starts as economic and later,
vote of the members of the Board of asitprogresses,itbecomesaULP,orviceversa.
Directors of the Corporation or
Association or of the partners in a Q:Canastrikebeconvertedintoalockout?
partnership,obtainedbysecretballotina
meetingcalledforthatpurpose. A:No,astrikecannotbeconvertedintoapureand
simple lockout by the mere expedient of filing
5. AstrikeorlockoutVOTEshallbereported beforethetrial courtanoticeofoffertoreturnto
to the NCMBDOLE Regional Branch at work during the pendency of the labor dispute
least7daysbeforetheintendedstrikeor between the union and the employer. (Rizal
lockoutsubjecttothecoolingoffperiod. Cement Workers Union v. CIR, G.R. No. L18442,
Nov.30,1962).
6. In the event the result of the
strike/lockout ballot is filed within the Q: Give examples of strike and explain their
coolingoffperiod,the7dayrequirement legality.
shall be counted from the day following
the expiration of the coolingoff A:
period. (NSFW vs. Ovejera, G.R. No. 1. Sitdown strike Characterized by a
59743,May31,1982) temporaryworkstoppageofworkerswho
seize or occupy property of the Er or
refusetovacatethepremisesoftheEr.

162
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LABOR RELATIONS LAW

Illegal Amounts to a criminal


actbecauseoftheEestrespass IllegalItisapoliticalrally
onthepremisesoftheEr
7. Quickie strikes brief and unannounced
2. Wildcat strike A work stoppage that temporaryworkstoppage
violates the labor contract and is not
authorizedbytheunion. Illegal failure to comply with notice
requirementsandetc.
Illegal Because it fails to
comply with certain reqts of Q: Two unions, joined a welga ng bayan. The
thelaw,towit:noticeofstrike, unions, led by their officers, staged a work
voteandreportonstrikevote stoppagewhichlastedforseveraldays,prompting
FILFLEX and BIFLEX Corporations to file a petition
3. SlowdownStrikeonaninstallmentplan; to declare the work stoppage illegal for failure to
an activity by which workers, without comply with procedural reqts. Whether the Ees
complete stoppage of work, retard committedanillegalworkstoppage?
productionortheirperformanceofduties
and functions to compel management to A:Yes.Ees,whohavenolabordisputewiththeirEr
granttheirdemands but who, on a day they are scheduled to work,
refuse to work and instead join a welga ng bayan
Illegal Ees work on their own commit an illegal work stoppage. There being no
terms;whiletheEescontinueto showing that the two unions notified the
work and remain in their corporations of their intention, or that they were
positionsandacceptwagespaid allowed by the corporations, to join the welga ng
tothem,theyatthesametime bayan, their work stoppage is beyond legal
select what part on their protection.(BIFLEX Phils. Inc. Labor Union (NAFLU)
allotted tasks they care to vs.FILFLEXIndustrialandManufacturingCorp.,G.R.
performontheirownvolitionor No.155679,Dec.19,2006)
refuseopenlyorsecretly
Q:Whatarethetestsindeterminingthelegalityof
4. Sympathetic strike Work stoppages of strike?
workers of one company to make
common cause with other strikers or A:Thefollowingmustconcur:
other companies without demands or 1. Purpose test the strike must be due to
grievancesoftheirownagainsttheEr either bargaining deadlock and/or the
ULP
Illegal There is no labor 2. Compliance with the procedural and
dispute between the workers substantive reqts of the law. (See
whoarejoiningthestrikersand requisitesofavalidstrike)
thelattersEr 3. Means employed test It states that a
strike may be legal at its inception but
5. Secondary strike Work stoppages of eventuallybedeclaredillegalifthestrike
workers of one company to exert is accompanied by violence which is
pressureontheirErsothatthelatterwill widespread, pervasive and adopted as a
in turn bring pressure upon the Er of matter of policy and not mere violence
another company with whom another whichissporadicwhichnormallyoccurin
unionhasalabordispute astrikearea.

Illegal There is no labor Q:Whataretheinstanceswhenastrikeorlockout
disputeinvolved. cannotbedeclared?

Note: A strike can validly take A:Nonstrikableissues:
placeonlyinthepresenceofand 1. CBAviolationsnotgrossincharacter
in relation to a labor dispute 2. Grounds involving inter/intraunion
betweenErandEe.
disputes
3. When there is no notice of strike or
6. Welga ng bayan (Cause Oriented Strikes) lockout or without the strike or lockout
A political strike and therefore there is vote
neitherabargainingdeadlocknoranyULP

163
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UST GOLDEN NOTES 2011

4. After assumption of jurisdiction by the its own initiative or upon request of


SLE anyparty.
5. After certification or submission of
dispute to compulsory or voluntary 4. FurnishtheregionalbranchoftheNCMB
arbitration or during the pendency of with a notice to conduct a strike vote, at
cases involving the same grounds for least 24hours before the meeting for
strikeorlockout such purpose (Sec. 10, Rule XXII of the
6. Labor standards cases such as wage OmnibusRulesoftheNLRC).
orders. (Guidelines governing Labor
Relations [Oct. 19, 1987] issued by Sec. 5. 7Daystrikebana7daywaitingperiod
Drilon.SeealsoArt.261,LC) before the date of the purported strike
(within which the union intending to
conduct a strike must at least submit a
Q: What are the procedural and substantive report to DOLE as to the result of the
requisitesbeforeastrikemaybedeclared? strikevote)

A: Note:TogiveDOLEanopportunitytoverify
1. Notice of strike filed with the NCMB whether the projected strike really carries
taking into consideration the coolingoff theimprimaturofthemajorityoftheunion
period members in addition to the coolingoff
period before the actual strike. (Lapanday
Note: The failure of the union to serve the Workers Union, et.al. v. NLRC, G.R. Nos.
company a copy of the notice of strike is a 9549497,Sep.7,1995)
clearviolationofSection3,RuleXXII,BookV
of the Rules Implementing the LC. The Q:Whatisacoolingoffperiod?
Constitutional precepts of due process
mandatethattheotherpartybenotifiedof A: It is the period of time given the NCMB to
the adverse action of the opposing party. mediateandconciliatetheparties.Itisthespanof
(Filipino Pipe and Foundry Corp. v. NLRC, time allotted by law for parties to settle their
G.R.No.115180,Nov.r16,1999) disputes in a peaceful manner before staging a
strikeorlockout.
2. 30/15 day Coolingoff period before the
intended date of actual strike notice of Note: Coolingoff and waiting period may be done
strike is filed with the NCMB taking into simultaneously.
consideration the coolingoff period, at
least: Q: What is the effect of noncompliance with the
requisitesofastrike?
a. 30 days before the intended strike
forbargainingdeadlocks; A:Thestrikemaybedeclaredillegal.
b. 15 days before the intended strike
forULP Q: What is the purpose of giving notice of the
conduct of a strike vote to the NCMB at least 24
3. Strikevote hoursbeforethemeetingforthesaidpurpose?
a. Thedecisiontodeclareastrikemust
be approved by a majority of the A:
total union membership in the 1. Inform the NCMB of the intent of the
bargainingunitconcerned. uniontoconductastrikevote;
b. It must be obtained by secret ballot 2. Give the NCMB ample time to decide on
throughmeetingsorreferendacalled whether or not there is a need to
forthepurpose. supervise the conduct of the strike vote
c. Its purpose is to ensure that the to prevent any acts of violence and or
intendedstrikeisamajoritydecision. irregularities;
The report on the strike vote must 3. Ample time to prepare for the
besubmittedtoDOLEatleast7days deployment of the requisite personnel.
beforetheintendedstrikesubjectto (Capitol Medical Center v. NLRC, G.R. No.
thecoolingoffperiod. 147080,April26,2005)
d. The regional branch may supervise
theconductofthesecretballotingat Q:Isanostrike/lockoutclauselegal?

164
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LABOR RELATIONS LAW

A:Yes,butitisapplicableonlytoeconomicstrikes, 2. The regional branch of the NCMB may,


not ULP strikes. As a provision in the CBA, it is a upon agreement of the parties, treat a
valid stipulation although the clause may be noticeasapreventivemediationcase.
invokedbyanemployer(Er)onlywhenthestrikeis 3. During the proceedings, the parties shall
economic in nature or one which is conducted to not do any act which may disrupt or
force wage or other concessions from the Er that impede the early settlement of the
arenotmandatedtobegrantedbythelawitself.It dispute.Theyareobliged,aspartoftheir
would be inapplicable to prevent a strike which is duty to bargain collectively in good faith
grounded on ULP. (PanayElectricCo.v.NLRC,G.R. and to participate fully and promptly in
No. 102672, Oct. 4, 1995; Malayang Samahan ng conciliation meetings called by the
mgaManggagawasaGreenfieldv.Ramos,G.R.No. regionalbranchoftheNCMB.
113907,Feb.28,2000) 4. A notice, upon agreement of the parties,
may be referred to alternative modes of
Q:Whatisapreventivemediationcase? dispute resolution, including voluntary
arbitration.
A: It involves labor disputes which are the subject
ofaformalorinformalrequestforconciliationand Q:Wasthestrikeheldbytheunionlegalbasedon
mediation assistance sought by either or both the fact that the notice of strike only contained
parties or upon the initiative of the NCMB. (Sec. 1 generalallegationsofULP?
[mm],RuleI,BookV,IRR)
A:No.RuleXIIISec.4BookVoftheImplementing
Note: The regional branch may treat the notice as RulesoftheLCprovides:IncasesofULP,thenotice
preventive mediation case upon agreement of the of strike shall as far as practicable, state the acts
parties. complainedofandtheeffortstoresolvethedispute
amicably. (Tiu v. NLRC, G.R. No. 123276, Aug. 18,
Q:Whatarethecontentsofthenoticeofstrikeor 1997)
lockout?
Q: NFSW, the bargaining agent of Central
A: Azucarera de la Carlota (CAC) rank and file
1. NameandaddressesofEr employees, filed a notice of strike based on non
th
2. Unioninvolved payment of the 13 month pay and 6 days
3. Nature of the industry to which the Er thereafter they held the strike. A day after the
belongs commencement of the strike, a report of the
4. Numberofunionmembers strikevote was filed by NFSW with MOLE. CAC
5. Workersinthebargainingunit filed a petition to declare the strike illegal due to
6. Otherrelevantdate noncompliancewiththe15daycoolingofperiod
7. In case of bargaining deadlocks: andthestrikewasheldbeforethelapseof7days
unresolved issues, written proposals of from the submission to the MOLE of the result of
the union, counterproposals of the Er thestrikevote.WasthestrikeheldbyNFSWlegal?
and proof of request for conference to
settledifferences A:No.ThecoolingoffperiodinArt.264(c)andthe
8. In case of ULP: The acts complained of, 7day strike ban after the strikevote report
and the efforts taken to resolve the prescribed in Art. 264 (f) were meant to be
dispute mandatory.Thelawprovidesthatthelaborunion
may strike should the dispute remain unsettled
Note:NCMBshallinformtheconcernedpartyincase untilthelapseoftherequisitenumberofdaysfrom
noticedoesnotconformwiththereqts. thefilingofthenotice,thisclearlyimpliesthatthe
union may not strike before the lapse of the
Q:Whatactionwilltheboardtakeonthenoticeof coolingoffperiod.Thecoolingoffperiodisforthe
strikeofstrikeorlockout? Ministry of Labor and Employment to exert all
efforts at mediation and conciliation to effect a
A: voluntarysettlement.
1. Upon receipt of notice, the regional
branchoftheBoardshallexertallefforts Themandatorycharacterofthe7daystrikebanis
at mediation and conciliation to enable manifest in the provision that in every case the
thepartiestosettlethedisputeamicably. unionshallfurnishtheMOLEwiththeresultsofthe
It shall also encourage the parties to votingatleast7daysbeforetheintendedstrike.
submit the dispute to voluntary Thisperiodistogivetimetoverifythatastrikevote
arbitration.

165
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UST GOLDEN NOTES 2011

was actually held. (NFSW v. Ovejera, G.R. No. L Q:Whataretheexceptionstothenobackwages


59743,May31,1982) ruleofstrikers?

Q:FilTransitEesUnionfiledanoticeofstrikewith A:
the BLR because of alleged ULP of the company. 1. When the Ees were illegally locked thus
Because of failure to reach an agreement the compellingthemtostageastrike
union went on strike. Several employees (Ees) 2. WhentheErisguiltyofthegrossestform
were dismissed because of the strike. The union ofULP
filedanothernoticeofstrikeallegingULP,massive 3. WhentheErcommitteddiscriminationin
dismissalofofficersandmembers,coercionofEes therehiringofstrikersrefusingtoreadmit
and violation of workers rights to self those against whom there were pending
organization. The Ministry of Labor and criminalcaseswhileadmittingnonstrikers
Employment, after assuming jurisdiction over the who were also criminally charged in
dispute, ordered all striking Ees including those court;
who were dismissed to return to work. The 4. When the workers who staged a
company however countered that no strike vote voluntary ULP strike offered to return to
had been obtained before the strike was called work unconditionally but the Er refused
andtheresultofthestrikevotewasnotreported toreinstatethem.(ManilaDiamondHotel
to Ministry of Labor and Employment. Was the vs.ManilaDiamondHotelEesUnion,G.R.
strikeheldbytheunionillegalforfailuretoholda No.158075,June30,2006)
strikevote?
d.AssumptionofJurisdictionbytheSecretaryof
A: Yes, there is no evidence to show that a strike LabororCertificationoftheLabordisputetothe
vote had in fact been taken before a strike was NLRCforcompulsoryarbitration
called. Even if there was a strike vote held, the
strike called by the union was illegal because of Q: Discuss the assumption of jurisdiction by the
nonobservance by the union of the mandatory 7 Secretary of Labor and Employment (SLE) on
day strike ban counted from the date the strike strikes/lockouts.
voteshouldhavebeenreportedtotheDOLE.(First
City Interlink Transportation Co., Inc. v. Confessor, A:
G.R.No.106316,May5,1997) 1. Discretionary
a. If in his opinion there exists a labor
Q: The company conceived and decided to dispute causing or likely to cause a
retrench its Ees and selected about 40 Ees to be strike or lockout in an industry
dismissedbecauseofthelackofwork.Becauseof indispensabletothenationalinterest.
this about 200 Ees during breaktime boarded b. He may certify the same to the NLRC
busesandwenttotheMinistryofLaborbutthey forcompulsoryarbitration
wereadvisedtoreturntowork. c. Effect Automatically enjoins the
intended or impending strike/lockout
Upon returning to the companys premises, the butifonehasalreadytakenplace,all
Ees were only allowed to stay in the canteen and striking or locked out Ees shall
were not given work because according to the immediatelyreturntoworkandtheEr
company the machines were undergoing repairs. shall immediately resume operations
Are the Ees entitled to reinstatement and and readmit all workers under the
backwages? same terms and conditions prevailing
before the strike or lockout (Trans
A:TheEesareentitledtoreinstatementbutnotto Asia Shipping Lines, Inc.Unlicensed
backwages. Both parties being in pari delicto, Crews Ees Union v. CA, G.R. No.
having conducted an illegal strike and lockout 145428,July7,2004)
respectively, there must be a restoration of the
statusquoanteandmustbringthepartiesbackto Note: Amotionforreconsiderationdoesnot
their respective positions prior to the illegal strike suspend the effects as the assumption order
andlockoutwhichshallbedonebyreinstatingthe isimmediatelyexecutory.
remaining Ees. However, it is the general rule that
strikersarenotentitledtobackwages.Theprinciple 2. Mandatory(within24hours)
of no work, no pay is applicable in view of the a. In labor disputes adversely affecting
finding of the illegality of the strike. (Philippine the continued operation of hospitals,
InterFashion,Incv.NLRC,G.R.No.L59847,Oct.18, clinicsormedicalinstitutions.
1982)

166
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LABOR RELATIONS LAW

b. Mayassumejurisdictionorcertifyitto A: No, the mere issuance of an assumption order


theNLRCforcompulsoryarbitration automaticallycarrieswithitareturntoworkorder
c. DutyofstrikingunionorlockingoutEr althoughnotexpresslystatedtherein.(TSEUFFWv.
to provide and maintain an effective CA,G.R.Nos.14301314,Dec.18,2000)
skeletal workforce of medical and
other health personnel, where Q: What is the extent of the powers of the
movement and service shall be Presidentduringstrikes/lockouts?
unhampered and unrestricted as are
necessary to insure the proper and A:
adequate protection of the life and 1. May determine the industries, which are
health of its patients most especially in his opinion indispensable to national
emergency cases for the duration of interest
thestrikeorlockout(Art.263[g]) 2. May intervene at any time and assume
jurisdictionoveranysuchlabordisputein
Q:Whatdoesthephraseunderthesameterms order to settle or terminate the same.
andconditionscontemplate? (Art.263[g])

A: Note: The decision of the President/SLE is final and
GR: It contemplates only actual reinstatement. executoryafterreceiptthereofbytheparties.
This is in keeping with the rationale that any
work stoppage or slowdown in that particular Q: May a return to work order be validly issued
industry can be inimical to the national pending determination of the legality of the
economy. strike?

XPN: Payroll reinstatement in lieu of actual A: Yes. Where the return to work order is issued
reinstatement but there must be showing of pending the determination of the legality of the
special circumstances rendering actual strike, it is not correct to say that it may be
reinstatement impracticable, or otherwise not enforced only if the strike is legal and may be
conducivetoattainingthepurposeofthelawin disregardedifillegal.Precisely,thepurposeofthe
providing for assumption of jurisdiction by the return to work order is to maintain the status quo
SLE in a labor dispute that affects the national whilethedeterminationisbeingmade.(Sarmiento
interest. (Manila Diamond Hotel Ees Union v. v.Tuico,G.R.Nos.7527173,June27,1988)
SLE,G.R.No.140518,Dec.16,2004)
e.NatureofAssumptionOrderorCertification
Q:WhatareissuesthattheSLEmayresolvewhen Order
heassumesjurisdictionoveralabordispute?
Q: What is the nature of the power of SLE under
A: Art.263(g)?
1. IssuessubmittedtotheSLEforresolution
and such issues involved in the labor A:Theassumptionofjurisdictionisinthenatureof
dispute itself. (St. Scholasticas College v. a police power measure. This is done for the
Torres,G.R.No.100158,June2,1992) promotionofthecommongoodconsideringthata
2. SLE may subsume pending labor cases prolonged strike or lockout can be inimical to the
before LAs which are involved in the national economy. The SLE acts to maintain
dispute and decide even issues falling industrial peace. Thus, his certification for
under the exclusive and original compulsory arbitration is not intended to impede
jurisdictionofLAssuchasthedeclaration the workers right to strike but to obtain a speedy
of legality or illegality of strike (Intl. settlementofthedispute.(PhiltreadWorkersUnion
Pharmaceuticals v. SLE, G.R. Nos. 92981 v.Confesor,G.R.No.117169,Mar.12,1997)
83,Jan.9,1992)
Art.263(g)doesnotinterferewiththeworkersright
Note: Power of SLE is plenary and discretionary. (St. to strike but merely regulates it, when in the
Lukes Medical Center v. Torres, G.R. No. 99395, June exercise of such right national interest will be
29,1993) affected. The LC vests upon the SLE the discretion
to determine what industries are indispensable to
Q:IsitnecessaryfortheSLEtoissueareturnto nationalinterest.
workorderinanassumptionorder?
Q: What is the nature of assumption and
certificationordersoftheSecretaryofLabor?

167
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UST GOLDEN NOTES 2011

meetings were conducted but to no avail so the


A: The underlying principle embodied in Art. 264 union staged a strike while the company
(g) on the settlement of labor disputes is that terminated 383 union members from service
assumptionandcertificationordersareexecutorin pursuanttoitsredundancyprogram.Pursuantto
character and are strictly complied with by the Art. 263(g) of the LC the SLE certified the labor
parties even during the pendency of any petition dispute for compulsory arbitration. Accordingly
questioning their validity. This extraordinary the SLE enjoined the strike staged by the union
authoritygiventotheSecretaryofLaborisaimedat andallstrikingworkersweredirectedtoreturnto
arriving at a peaceful and speedy solution to labor work within 24 hours except for those who were
disputes,withoutjeopardizingnationalinterests. terminatedduetoredundancy.

Q: A notice of strike was filed by the PSBA Ees WastheSLEcorrectinexceptingfromthereturn
UnionFFW,allegingunionbusting,coercionofEes toworkorderthosewhowereterminateddueto
and harassment on the part of PSBA. The redundancy?
conciliation being ineffective, the strike pushed
through.AcomplaintforULPandforadeclaration A: No, Art. 263(g) is clear and unequivocal in
of illegality of the strike with a prayer for stating that all striking or lockout Ees shall
preliminary injunction was filed by PSBA against immediately return to work and the Er shall
theunion. immediately resume operations and readmit all
workers under the same terms and conditions
While the cases were pending, a complaint was prevailing before the strike or lockout. Records of
filedintheRTCofManilabysomePSBAstudents the case would show that the strike occurred one
againstPSBAandtheunion,seekingtoenjointhe day before the members of the union were
union and its members from picketing and from dismissed due to alleged redundancy. Thus the
barricading themselves in front of the schools abovementioned article directs that the Er must
main gate. A TRO was then issued by the RTC, readmit all workers under the same terms and
which the union opposed on the ground that the conditions prevailing before the strike. (PLDT v.
case involves a labor dispute over which the RTC Manggagawa ng Komunikasyon sa Pilipinas, G.R.
had no jurisdiction. The Acting SLE later on No.162783,July14,2005)
assumed jurisdiction over the labor dispute and
ordered the striking Ees to return to work. Was f.EffectofdefianceofAssumptionorCertification
the SLE correct in ordering the striking Ees to Order
returntowork?
Q:Whatistheeffectofdefiancetothereturnto
A: Yes. In the opinion of the Acting SLE, the labor workorder?
dispute adversely affected the national interest,
affecting as it did 9,000 students. He is authorized A:Itshallbeconsideredanillegalactcommittedin
by law to assume jurisdiction over the labor the course of the strike or lockout and shall
dispute, after finding that it adversely affected the authorizetheSLEortheNLRC,asthecasemaybe,
nationalinterest.Thispowerisexpresslygrantedby to enforce the same under pain or loss of
Art.263(g)oftheLC,asamendedbyB.P.Blg.227. employment status or entitlement to full
employment benefits from the lockingout Er or
Q:DoestheRTChavejurisdictiontodecideonthe backwages, damages and/or other positive and/or
casefiledbythePSBAstudents? affirmative reliefs, even to criminal prosecution
against the liable parties. (Sec. 6, Rule IX, of the
A: No, the RTC was without jurisdiction over the New Rules of Procedure of the NLRC; St.
subject matter of the case filed by some PSBA Scholasticas College v. Torres, G.R. No. 100158,
students, involving as it does a labor dispute over June2,1992)
whichthelaboragencieshadexclusivejurisdiction.
That the regular courts have no jurisdiction over g.IllegalStrike
labor disputes and to issue injunctions against
strikes is wellsettled. (PSBA v. Noriel, G.R. No. Q:Whenisastrikeillegal?
80648,Aug.15,1988)
A:
Q: Members of the union learned that a 1. Contrary to specific prohibition of law,
redundancy program would be implemented by such as strike by employees (Ees)
thecompany.ThereuponitfiledaNoticeofstrike performinggovernmentalfunctions;
on the grounds of ULP. A number of conciliation 2. Violatesaspecificreqtoflaw;

168
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LABOR RELATIONS LAW

3. Declaredforanunlawfulpurpose,suchas Q: What is the rule on reinstatement of striking


inducingtheemployer(Er)tocommitULP workers?
againstnonunionEes;
4. Employsunlawfulmeansinthepursuitof A:Strikingemployeesareentitledtoreinstatement,
its objective, such as widespread regardless of whether or not the strike was the
terrorismofnonstrikers; consequence of the employers ULP because while
5. Declared in violation of an existing out on strike, the strikers are not considered to
injunction; haveabandonedtheiremployment,butratherhave
6. Contrary to an existing agreement, such only ceased from their labor; the declaration of a
as a no strike clause or conclusive strikeisnotarenunciationofemploymentrelation.
arbitrationclause
Q:Whoarenotentitledtoreinstatement?
Q:Whatisgoodfaith(GF)strikedoctrine?
A:
A:Astrikemaybeconsideredlegalwheretheunion 1. Union officers who knowingly participate
believedthatthecompanycommittedULPandthe intheillegalstrike
circumstances warranted such belief in GF, 2. Any striker or union who knowingly
although subsequently such allegations of ULP are participates in the commission of illegal
found out as not true. (Bacus v. Ople, GR No. L actsduringthestrike
56856, Oct. 23, 1984, Peoples Industrial and
CommercialEesandOrganization(FFW)v.Peoples Note:Thoseunionmemberswhohavejoinedanillegal
Industrial and Commercial Corp., G.R. No.37687, strike but have not committed any illegal act shall be
Mar.15,1982) reinstatedbutwithoutbackwages.

Q: What is the effect of the GF of strikers on the Theresponsibilityfortheillegalactscommittedduring
legalityofstrike? the strike must be on an individual and not on a
collectivebasis.(FirstCityInterlinkTransportationCo.,
Inc.v.Confesor,G.R.No.106316,May5,1997)
A:

GR:AstrikegroundedonULPisillegalifnosuch
Q: Are strikers entitled to their backwages or
actsactuallyexist.
strikedurationpay?


XPN:EvenifnoULPactsarecommittedbythe
A:
Er,iftheEesbelieveinGFthatULPactsexistso
GR:No,evenifsuchstrikewaslegal.
as to constitute a valid ground to strike, then

the strike held pursuant to such belief may be
XPN:
legal. Where the union believed that the Er
1. Where the strikers voluntarily and
committed ULP and the circumstances
unconditionallyofferedtoreturntowork,
warrantedsuchbeliefinGF,theresultingstrike
but the employer refused to accept the
may be considered legal although,
offerworkersareentitledtobackwages
subsequently, such allegations of ULP were
fromthedatetheirofferwasmade
found to be groundless. (NUWHRAINInterim
2. Whenthereisareturntoworkorderand
Juntav.NLRC,G.R.No.125561,Mar.6,1998)
the Ees are discriminated against other
(1)LiabilityofOfficersoftheUnionandOrdinary Ees, workers are entitled to back wages
Workers fromthedateofdiscrimination
3. IncaseofaULPstrike,inthediscretionof
Q: Should separation pay and backwages be theauthoritydecidingthecase

awardedtotheparticipantsofanillegalstrike?
Q:Whatistheruleinstrikesinhospitals?
A: No backwages will be awarded to union
membersasapenaltyfortheirparticipationinthe A:
illegalstrike.Asfortheunionofficers,forknowingly 1. It shall be the duty of the striking
participating in an illegal strike, the law mandates employees or lockingout employer to
that a union officer may be terminated from provideandmaintainaneffectiveskeletal
employmentandtheyarenotentitledtoanyrelief. workforce of medical and health
(GoldCityIntegratedPortServices,Inc.v.NLRC,G.R. personnelforthedurationofthestrikeor
No.86000,Sep.21,1990) lockout.
2. SLE may immediately assume jurisdiction

within 24 hours from knowledge of the

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UST GOLDEN NOTES 2011

occurrence of such strike or lockout A: When an employer accedes to the peaceful


certify it to the NLRC for compulsory settlement brokered by the NLRC by agreeing to
arbitration. accept all employees who had not yet returned to
work, it waives the issue of the illegality of the
Q:Moreorless1400Eesofthecompanystageda strike. (Reformist Union v. NLRC, G.R. No.
masswalkout,allegedlywithoutanybodyleading 120482,Jan.27,1997)
them as it was a simultaneous, immediate and
unanimous group action and decision, to protest j.Injunctions
thenonpaymentoftheirsalariesandwages.The
MinisterofLaborandEmploymentwhofoundthe Q:Whatisaninjunction?
strike to be illegal granted the clearance to
terminate the employment of those who were A: Itisanorderorawritthatcommandsaperson
instigatorsintheillegalstrike.Wasthedecisionof to do or not to do a particular act. It may be a
the Minister of Employment in granting the positive (mandatory) or a negative (prohibitory)
clearancecorrect? command.

A: No, a mere finding of the illegality of a strike (1)RequisitesforLaborInjunctions


shouldnotbeautomaticallyfollowedbywholesale
dismissal of the strikers from their employment. Q:Maythecourtorquasijudicialentityissueany
While it is true that administrative agencies injunctionduringstrikes/lockouts?
exercisingquasijudicialfunctionsarefreefromthe
A:GR:Nocourtorentityshallenjoinanypicketing,
rigiditiesofprocedure,itisequallywellsettledthat
strikeorlockout,oranylabordispute.
avoidance of technicalities of law or procedure in
ascertaining objectively the facts in each case
XPN:
should not, however, cause denial of due process.
1. When prohibited or unlawful acts are
(Bacusv.Ople,G.R.No.L56856,Oct.23,1984)
beingorabouttobecommittedthatwill

causegraveorirreparabledamagetothe
Q: 2 days after the union struck, the SLE ordered
complainingparty.(Art.218[e])
the striking workers to return to work within 24
2. Onthegroundofnationalinterest
hours. But the striking union failed to return to
3. The SLE or the NLRC may seek the
workandinsteadtheycontinuedtheirpickets.As
assistanceoflawenforcementagenciesto
a result, violence erupted in the picket lines. The
ensure compliance with this provision as
service bus ferrying nonstriking workers was
well as with such orders as he may issue
stonedcausinginjuriestoitspassengers.Threats,
toenforcethesame(Art.263[g])
defamation,illegaldetention,andphysicalinjuries

also occurred. The company was directed to
(2)InnocentBystanderRule
acceptback all striking workers, except theunion

officers, shop stewards, and those with pending
Q: What must an innocent bystander satisfy
criminal charges. Was the SLE correct in not
beforeacourtmayenjoinalaborstrike?
including the union officers, shop stewards and

thosewithpendingcriminalchargesinthereturn
A:Theinnocentbystandermustshow:
toworkorder?

1. Compliancewiththegroundsspecifiedin
A:No,toexcludeunionofficers,shopstewardsand
Rule58oftheRulesofCourt,and
thosewithpendingcriminalchargesinthedirective
2. That it is entirely different from, without
tothecompanytoacceptbackthestrikingworkers
any connection whatsoever to, either
without first determining whether they knowingly
party to the dispute and, therefore, its
committed illegal acts would be tantamount to
interestsaretotallyforeigntothecontext
dismissal without due process of law. (Telefunken
thereof. (MSF Tire & Rubber v. CA, G.R.
Semiconductors Ees UnionFFW v. SLE, G.R. No.
128632,Aug.5,1999)
122743&127215,Dec.12,1997)

Q:MaytheRTCtakecognizanceofthecomplaint
(2)WaiverofIllegalityofStrike
where the same is but an incident of a labor

dispute?
Q: When is there a waiver of the illegality of a

strikebytheemployer? rd
A: No, where the subject matter of the 3 party

claim is but an incident of the labor case, it is a


matter beyond the jurisdiction of the RTC, such

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LABORLAWTEAM:
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LABOR RELATIONS LAW

courtshavenojurisdictiontoactonlaborcasesor
various incidents arising therefrom, including the
executionofdecisions,awardsororders.

Aparty,byfilingits3rdpartyclaimwiththedeputy
sheriff, it submitted itself to the jurisdiction of the
NLRCactingthroughtheLA.

The broad powers granted to the LA and to the
NLRCbyArt.217,218and224oftheLCcanonlybe
interpreted as vesting in them jurisdiction over
incidents arising from, in connection with or
relatingtolabordisputes,asthecontroversyunder
consideration, to the exclusion of the regular
courts.TheRTC,beingacoequalbodyoftheNLRC,
hasnojurisdictiontoissueanyrestrainingorderor
injunctiontoenjointheexecutionofanydecisionof
the latter. (Deltaventures v. Cabato, G.R. No.
118216,Mar.9,2000)

Q:TheemployerfiledwiththeRTCacomplaintfor
damages with preliminary mandatory injunction
againsttheunion,themainpurposeofwhichisto
dispense the picketing of the members of the
union.Theunionfiledamotiontodismissonthe
groundoflackofjurisdiction.TheRTCdeniedthe
motion to dismiss and enjoined the picketing, it
said that mere allegations of ErEe relationship
does not automatically deprive the court of its
jurisdiction and even the subsequent filing of
charges of ULP, as an afterthought, does not
deprive it of its jurisdiction. Was the issuance by
theRTCoftheinjunctionproper?

A:No,theconcertedactiontakenbythemembers
of the union in picketing the premises of the
departmentstore,nomatterhowillegal,cannotbe
regarded as acts not arising from a labor dispute
over which the RTCs may exercise jurisdiction.
(SamahangManggagawangLibertyCommercialv.
Pimentel,G.R.No.L78621,Dec.2,1987)

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UST GOLDEN NOTES 2011

H.PROCEDUREANDJURISDICTION 8. Wage distortion disputes in unorganized


establishments not voluntarily settled by
1.LABORARBITER thepartiespursuanttoRA6727
9. Enforcement of compromise agreements
a.Jurisdiction when there is noncompliance by any of
Q:Whatisthedistinctionbetweenthejurisdiction the parties pursuant to Art. 227 of the
of the labor arbiter (LA) and the National Labor LaborCode(LC),asamended;and
RelationsCommission(NLRC)? 10. Othercasesasmaybeprovidedbylaw

A: Note: Although the provision speaks of exclusive and
1. The NLRC has exclusive appellate originaljurisdictionofLAs,thecasesenumeratedmay
jurisdictiononallcasesdecidedbytheLA. instead be submitted to a voluntary arbitrator by
2. The NLRC does not have original agreementofthepartiesunderArt.262oftheLC.The
jurisdiction on the cases over which the lawprefersvoluntaryovercompulsoryarbitration.
LAhaveoriginalandexclusivejurisdiction.
3. The NLRC cannot have appellate Q:Whatisthenatureofthecaseswhichthelabor
jurisdiction if a claim does not fall within arbiter(LA)mayresolve?
the exclusive original jurisdiction of the
LA. A: The cases that an LA can hear and decide are
employment related. Where no ErEe relationship
Q: What is the nature of jurisdiction of labor existsbetweenthepartiesandnoissueisinvolved
arbiters(LAs)? which may be resolved by reference to the LC,
other labor statutes, or any collective bargaining
A:Itisoriginalandexclusive.LAshavenoappellate agreement, it is the RTC that has jurisdiction.
jurisdiction. (Lapanday Agricultural Devt. Corp v. CA, G.R. No.
112139,Jan.31,2000)
Q:Whatarethecasesfallingunderthejurisdiction
oflaborarbiters(LAs)? TheLAhasjurisdictionovercontroversiesinvolving
Ers and Ees only if there is a reasonable causal
A: Exclusive and original jurisdiction to hear and connectionbetweentheclaimassertedandtheEr
decidethefollowingcasesinvolvingallworkers: Ee relations. Absent such link, the complaint is
cognizable by the regular court. (Eviota v. CA, G.R.
1. ULPcases No.152121,July29,2003)
2. Terminationdisputes
3. If accompanied with a claim for Q: Do labor arbiters exercise concurrent
reinstatement, those that workers file jurisdictionwiththeNLRC?
involving wages, rates of pay, hours of
work and other terms and conditions of A:Yes,withrespecttocontemptcases.
employment
4. Claims for actual, moral, exemplary and Q: What are the cases referred to grievance
other forms of damages arising from Er machineryandvoluntaryarbitration?
Eerelations
A:Disputesarisingfromthe:
5. Cases arising from any violation of Art.

264, including questions involving the
1. Interpretation or implementation of the
legalityofstrikesandlockouts;
CBA
6. Except claims for Employment
2. Interpretation or enforcement of
Compensation, Social Security, Philhealth
companypersonnelpolicies
and maternity benefits, all other claims

arising from ErEe relations, including
Q: What is the extent of the jurisdiction of the
those of persons in domestic or
labor arbiter (LA) if there are unresolved matters
household service, involving an amount
arisingfromtheinterpretationoftheCBA?
exceeding P5000 regardless of whether

accompanied with a claim for
A:
reinstatement
GR:LAshavenojurisdictionoverunresolvedor
7. Monetary claims of overseas contract
unsettled grievances arising from the
workersarisingfromErEerelationsunder
interpretation or implementation of the CBA
the Migrant Workers Act of 1995 as
and those arising from the interpretation or
amendedbyRA10022
enforcementofcompanypersonnelpolicies.

172
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PROCEDURE AND JURISDICTION

City Water District v. Buat, G.R. No.


XPN:Actualterminationdisputes 104389,May27,1994)
7. The aggregate money claim does not
Note: Where the dispute is just in the interpretation, exceed P5000 and without claim for
implementation or enforcement stage of the reinstatement(RajahHumabonHotel,Inc.
termination, it may be referred to the grievance v. Trajano, G.R. Nos. 10022223, Sep.14,
machinery set up by the CBA or by voluntary 1993)
arbitration. Where there was already actual 8. Claim of employee (Ee) for cash prize
termination, i.e., violation of rights, it is already under the Innovation Program of the
cognizable by the LA. (Maneja v. NLRC, G.R. No. company, although arising from ErEe
124013,June5,1998)
relationship, is one requiring application

of general civil law on contracts which is
Q: Does the use of the word may in the
within the jurisdiction of the regular
provisions of the Grievance Procedure allow the
courts(SMCv.NLRC,G.R.No.80774,May
alternativeofsubmittingthecasebeforethelabor
31,1988)
arbiter(LA)?
9. Cause of action based on quasidelict or

tort which has no reasonable connection
A: Yes. The use of the word may shows the
with any of the claims enumerated in
intention of the parties to reserve the right to
Art.217oftheLC(Ochedav.CA, G.R.No.
submit the illegal termination dispute to the
85517,Oct.16,1992)
jurisdiction of the LA, rather than to a voluntary
10. Complaint arising from violation of
arbitrator.Petitionervalidlyexercisedhisoptionto
training agreement (Singapore Airlines v.
submithiscasetoaLAwhenhefiledhiscomplaint
Pano,G.R.No.L47739,June22,1983)
before the proper government agency. In other
words, the CA is correct in holding that voluntary Q: FASAP, the sole and exclusive bargaining
abitration is mandatory in character if there is a representative of the flight attendants, flight
specific agreement between the parties to that stewardsandpursersofPAL,andrespondentPAL
effect.Itmustbestressedhoweverthat,inthecase entered into a CBA incorporating the terms and
at bar, the use of the word may shows the conditions of their agreement for the years 01
intention of the parties to reserve the right of 05. Sec. 144, Part A of the CBA provides that
recourse to LAs. (Vivero v. CA, G.R. No. 138938, compulsoryretirementshallbe55forfemalesand
Oct.24,2000) 60 for males. They filed an action with the RTC
claiming that the CBA provision is discriminatory
Q:Whatarethecaseswhichdonotfallunderthe andhenceunconstitutional.TheRTCissuedaTRO.
jurisdictionofthelaborarbiters(LA)? The appellate court ruled that the RTC has no
jurisdictionoverthecaseatbar.WhetherRTChas
A:LAshavenojurisdictionovertheff: jurisdictionoverthepetitioners'actionchallenging
the legality of the provisions on the compulsory
1. Foreign governments (JUSMAGPhils. v.
retirementagecontainedintheCBA?
NLRC,G.R.No.108813,Dec.15,1994)

2. Intl agencies (Lasco v. NLRC, G.R. Nos.
A: Yes. The subject of litigation is incapable of
109095109107,Feb.23,1995)
pecuniaryestimation,exclusivelycognizablebythe
3. Intracorporate disputes which fall under
RTC, pursuant to Sec. 19 (1) of BP Blg. 129, as
P.D. 902A and now falls under the
amended.Beinganordinarycivilaction,thesameis
jurisdictionoftheregularcourtspursuant
beyondthejurisdictionoflabortribunals.
to the new Securities Regulation Code

(Nacpil v. IBC, G.R. No. 144767, Mar. 21,
Not every controversy or money claim by an
2002)
employee (Ee) against the employer (Er) or vice
4. Executing money claims against
versa is within the exclusive jurisdiction of the LA.
government(DeptofAgriculturev.NLRC,
Actions between Ees and Er where the ErEe
G.R.No.104269,Nov.11,1993)
relationship is merely incidental and the cause of
5. Cases involving GOCCs with original
action precedes from a different source of
charters which are governed by civil
obligationiswithintheexclusivejurisdictionofthe
servicelaw,rulesorregulations(Art.IXB,
regularcourt.Here,theErEerelationshipbetween
Sec.2,No.1,1987Constitution)
the parties is merely incidental and the cause of
6. Localwaterdistrict(TanjayWaterDistrict
action ultimately arose from different sources of
v.Gabaton,April17,1989) except where
obligation, i.e., the Constitution and CEDAW.
NLRC jurisdiction is invoked (Zamboanga
(Halaguena vs. PAL Incorporated, G.R. No. 172013,
Oct.2,2009)

173
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UST GOLDEN NOTES 2011

A:
Q: Who has the exclusive appellate jurisdiction 1. Theappealisperfected:
overallcasesdecidedbyLaborArbiters? a. Filed within the reglementary period
providedinSec.1ofthisRules
A:TheNLRC. b. Verified by the appellant himself in
accordancewithSec.4,Rule7ofthe
Q:Whatistheeffectofperfectionofanappealon RulesofCourt,asamended
execution? c. In the form of a memorandum of
appealwhichshallstatethegrounds
A: The perfection of an appeal shall stay the relied upon and the arguments in
execution of the decision of the Labor Arbiter on support thereof, the relief prayed
appeal,exceptexecutionforreinstatementpending for,andwithastatementofthedate
appeal. the appellant received the appealed
decision,resolutionororder
Note:TheprovisionofArt.223isclearthatanaward d. In 3 legibly typewritten or printed
by the LA for reinstatement shall be immediately copies
executor even pending appeal and the posting of a e. Accompaniedby(i)proofofpayment
bondbytheemployershallnotstaytheexecutionfor of the required appeal fee; (ii)
reinstatement.(PioneerTexturizingCorp.v.NLRC,G.R. posting of a cash or surety bond as
No.118651,Oct.16,1997) providedinSec.6ofthisRule;(iii)a
certificate of nonforum shopping;
b.Effectofselfexecutingorderofreinstatementon and (iv) proof of service upon the
backwages otherparties.

Q: May dismissed employees (Ees) collect their 2. Merenoticeofappealwithoutcomplying
wages during the period between the Labor withtheotherrequisitesaforestatedshall
Arbiters (LAs) order of reinstatement pending not stop the running of the period for
appeal and the NLRC decision overturning that of perfectinganappeal.
theLA?
Q: Is the posting of an appeal bond required for
A: Yes. Par. 3 of Art. 223 of the Labor Code
theperfectionofanappealfromaLaborArbiters
provides that the decision of the LA reinstating a
(LAs)decisioninvolvingmonetaryaward?
dismissed or separated Ee, insofar as the

reinstatement aspect is concerned, shall
A:Yes.IncasethedecisionoftheLAortheRegional
immediatelybeexcutory,pendingappeal.
Director involves a monetary award, an appeal by
the employer may be perfected only upon the
Even if the order of reinstatement of the LA is
postingofabond.(Sec.6,RuleVI,NLRC2005Rules
reversed on appeal, it is obligatory on the part of
ofProcedure)
theemployer(Er)toreinstateandpaythewagesof

the dismissed Ee during the period of appeal until
Q:Whataretheformsoftheappealbond?
reversalbythehighercourt.Ontheotherhand,if

theEehasbeenreinstatedduringtheappealperiod
A: It shall either be in the form of cash deposit or
and such reinstatement order is reversed with
suretybondequivalentinamounttothemonetary
finality, the Ee is not required to reimburse
award, exclusive of damages and attorney's fees.
whatever salary he received for he is entitled to
(Sec.6,RuleVI,NLRC2005RulesofProcedure)
such, more so if he actually rendered services

during the period. (Pfizer v. Velasco, G.R. No.
Q:Whomayissueasuretybond?
177467,March9,2011)

Unless there is a restraining order, it is ministerial A: It shall be issued by a reputable bonding
upon the LA to implement the order of companydulyaccreditedbytheCommissionorthe
reinstatement and it is mandatory on the Er to SC,andshallbeaccompaniedbyoriginalorcertified
complytherewith.(Garciav.PAL,G.R.No.164856, truecopiesof:
Jan.20,2009)
1. A joint declaration under oath by the Er,
c.RequirementstoperfectappealtoNLRC his counsel, and the bonding company,
attestingthatthebondpostedisgenuine,
Q:HowisanappealfromLAtoNLRCperfected? andshallbeineffectuntilfinaldisposition
ofthecase.

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PROCEDURE AND JURISDICTION

2. AnindemnityagreementbetweentheEr Note: The mere filing of a motion to reduce bond


appellantandbondingcompany; withoutcomplyingwiththerequisitesinthepreceding
3. Proof of security deposit or collateral paragraphsshallnotstoptherunningoftheperiodto
securingthebond:provided,thatacheck perfectanappeal(Sec.6,RuleVI,NLRC2005Rulesof
shall not be considered as an acceptable Procedure).
security;
4. A certificate of authority from the Q: Company "A", within the reglementary
InsuranceCommission; period,appealed the decision of a Labor Arbiter
5. CertificateofregistrationfromtheSEC; directing the reinstatement of an Ee and
6. Certificate of authority to transact surety awarding backwages. However, A's cash bond
businessfromtheOfficeofthePresident; wasfiledbeyondthe ten day period. Shouldthe
7. Certificate of accreditation and authority NLRCentertaintheappeal?Why?
fromtheSC;and
A:No,theNLRCshouldnotentertaintheappeal,as
8. A notarized board resolution or
the same was not perfected for failure to file a
secretary's certificate from the bonding
bond. In ABA vs. NLRC, G.R. No.122627, July 18,
company showing its authorized
1999, the SC ruled: "An appeal bond is
signatoriesandtheirspecimensignatures.
necessary...the appeal may be perfected only
(Sec. 6, Rule VI, NLRC 2005 Rules of
upon the posting of cash or surety bond issued
Procedure)
by a reputable bonding company duly accredited

Note: The appellant shall furnish the appellee with a
bytheCommissionintheamountequivalenttothe
certifiedtruecopyofthesaidsuretybondwithallthe monetary award in the judgment appealed from."
abovementionedsupportingdocuments. (2001BarQuestion)

Q: What is the period within which a cash or Q: Is a motion for reconsideration (MR) of the
suretybondshallbevalidandeffective? NLRC decision required before certiorari may be
availedof?
A: From the date of deposit or posting, until the
A:Yes.AMRisrequiredtoenableNLRCtocorrect
case is finally decided, resolved or terminated, or
its mistakes. If no MR is filed, NLRCs decision
theawardsatisfied.Thisconditionshallbedeemed
becomesfinalandexecutory.
incorporated in the terms and conditions of the
suretybond,andshallbebindingontheappellants
Q:WhatistheremedyincaseofdenialoftheMR?
and the bonding company. (Sec. 6, Rule VI, NLRC
2005RulesofProcedure) A:Ifthemotionisdenied,theaggrievedpartymay
file a petition for certiorari not later than 60 days
Q:Whatistheeffectifthebondisverifiedbythe fromnoticeofthejudgment,orderorresolution.In
NLRCtobeirregularornotgenuine? case a motion for reconsideration or new trial is
timely filed, whether such motion is required or
A: The Commission shall cause the immediate not,the60dayperiodshallbecountedfromnotice
dismissal of the appeal, and censure or cite in of the denial of said motion. No extension of time
contempt the responsible parties and their to file the petition shall be granted except for
counsels, or subject them to reasonable fine or compelling reason and in no case exceeding 15
penalty. (Sec.6, Rule VI, NLRC 2005 Rules of days.(Sec.4,Rule65,RulesofCourt.)
Procedure)
Q:Whatistheeffectifnoserviceofsummonswas
Note: The appellee shall verify the regularity and
made?
genuineness of the bond and immediately report any
irregularitytotheNLRC.
A: Intheabsenceofserviceofsummonsoravalid

waiver thereof, the hearings and judgment
Q:Maythebondbereduced?
renderedbythelaborarbiterisnullandvoid.

A:
Q:Whatiscompulsoryarbitration?
GR:No.
A:Theprocessofsettlementoflabordisputesbya
XPN: On meritorious grounds, and only upon the government agency which has the authority to
posting of a bond in a reasonable amount in investigate and make an award binding on all the
relationtothemonetaryaward. parties.

175
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UST GOLDEN NOTES 2011

Q:CantheLaborArbiter(LA)conductcompulsory
arbitration? 2.NATIONALLABORRELATIONSCOMMISSION
(NLRC)
A: Yes. Under the Labor Code, it is the LA who is
clothed with the authority to conduct compulsory Q:WhatistheNLRC?
arbitration on cases involving termination disputes
[Art.217,P.D.442,asamended].(PALv.NLRC,G.R. A: It is an administrative body with quasijudicial
No.55159,Dec.22,1989) functionsandtheprincipalgovernmentagencythat
hearsanddecideslabormanagementdisputes;itis
Q:Whataretherulesonvenueoffilingcases? attachedtotheDOLEsolelyforprogramandpolicy
coordinationonly.
A:
1. All cases which the Labor Arbiters (LAs) Q: How are the powers and functions of theNLRC
have authority to decide may be filed in allocated?
the Regional Arbitration Branch (RAB)
having jurisdiction over the workplace of A:
thecomplainant/petitioner. 1. EnBanc
a. Promulgating rules and regulations
Note: Workplace is understood to be the and governing the hearings and
placeorlocalitywheretheemployee(Ee)is disposition of cases before any of its
regularlyassignedwhenthecauseofaction divisionsandregionalbranches.
arose.ItshallincludetheplacewheretheEe b. Formulating policies affecting its
issupposedtoreportbackafteratemporary administrationandoperations.
detail,assignmentortravel. c. Ontemporaryoremergencybasis,to
In case of field Ees, as well as ambulant or allow cases within the jurisdiction of
itinerant workers, their workplace is where
anydivisiontobeheardanddecided
theyare
by any other division whose docket
a.Regularlyassigned
b. Supposed to regularly receive their
allows the additional workload and
salariesandwages suchtransferwillnotexposelitigants
c.Receivetheirworkinstructionsfrom tounnecessaryadditionalexpense.
d. Reporting the results of their 2. Division(8Divisionswith3members)
assignmenttotheiremployers(Er) a. Adjudicatory;
b. All other powers, functions and
2. Where 2 or more RABs have jurisdiction duties;
over the workplace, the first to acquire c. Exclusive appellate jurisdiction over
jurisdictionshallexcludeothers. cases within their respective
territorialjurisdiction.
3. Improper venue when not objected to
before filing of position papers shall be Q: Does an individual Commissioner have
deemedwaived. adjudicatorypower?

4. Venue may be changed by written A: No. The law lodges the adjudicatory power on
agreement of the parties or when the each of the eight divisions, not on the individual
NLRCortheLAsoorders,uponmotionby commissioners nor on the whole commission. The
theproperpartyinmeritoriouscases. division is a legal entity, not the person whosits
in it. Hence, an individual commissioner has no
5. ForOverseasContractWorkerswherethe adjudicatory power, although of course, he can
complainant resides or where the concurordissentindecidingacase.
principal office of the respondent Er is
located,attheoptionofthecomplainant. a.Jurisdictions

Note: The Rules of Procedure on Venue is Q: What are the two kinds of jurisdiction of the
merely permissive, allowing a different NLRC?
venue when the interest of substantial
justice demands a different one. (Dayag v. A:
Canizares,GR.No.124193,Mar.6,1998) 1. ExclusiveOriginalJurisdiction
a. Certified labor disputes causing or
likely to cause a strike or lockout in
anindustryindispensabletonational

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PROCEDURE AND JURISDICTION

interest, certified to it by the validjudgment.


Secretary of Labor or the President
forcompulsoryarbitration Note:Whenevertherequiredmembershipin
b. Injunction in ordinary labor disputes a division is not complete and the
to enjoin or restrain any actual or concurrence of the Commissioners to arrive
threatened commission of any or all at judgment or resolution cannot be
prohibited or unlawful acts or to obtained, the Chairman shall designate such
require the performance of a number of additional Commissioners from
particular act in any labor dispute theotherdivisionsasmaybenecessary.

which,ifnotrestrainedorperformed
2. It shall be mandatory for the division to
forthwith, may cause grave or
meetforpurposesofconsultation.
irreparabledamagetoanyparty

c. Injunction in strikes or lockouts
Note: The conclusion of a division on any
underArt.264oftheLaborCode(LC)
case submitted to it for decision should be
d. Contemptcases reached in consultation before the case is
2. ExclusiveAppellateJurisdiction assignedto a member forthewritingof the
a. All cases decided by the Labor opinion.
Arbiters under Art. 217(b) of the LC
and Sec. 10 of R.A.8042 (Migrant 3. Acertificationthataconsultationhasbeen
WorkersAct);and conducted, signed by the presiding
b. Cases decided by the Regional commissioner of the division, shall be
OfficesofDOLEintheexerciseofits issued(copyattachedtotherecordofcase
adjudicatory function under Art.129 andservedupontheparties).
of the LC over monetary claims of
workersamountingtonotmorethan Q:WhatarethequalificationsoftheChairmanand
P5000andnotaccompaniedbyclaim theCommissioners?
forreinstatement.
A:
Q:WhatisthecompositionoftheNLRC? 1. MemberofthePhilippineBar
2. Engaged in the practice of law in the
A: Philippinesforatleast15years
1. Chairman 3. Atleast5yearsexperienceorexposurein
2. 23Members handlinglabormanagementrelations
a. 8memberseach,shallbechosenonly 4. Preferably a resident of the region where
from among the nominees of the heistoholdoffice
workers and employers (Er)
organizationrespectively. Q: What are the qualifications of an Executive
b. The Chairman and the 7 remaining LaborArbiter?
members shall come from the public
sector, with the latter to be chosen A:
preferably from among the 1. MemberofthePhilippineBar
incumbentLaborArbiters. 2. Engaged in the practice of law in the
c. Upon assumption into office, the Philippinesforatleast10years
members nominated by the workers 3. Atleast5yearsexperienceorexposurein
and Ers organization shall divest handlinglabormanagementrelations
themselves of any affiliation with or
interest in the federation or Q: What is the term of office of the Chairman,
associationtowhichtheybelong. CommissionersandLaborArbiters(LAs)?

Note: There is no need for the Commission on A: They shall hold office duringgood behavior until
Appointments to confirm the positions in the NLRC. theyreachtheageof65unlessremovedforcauses
Suchrequirementhasnoconstitutionalbasis.(Calderon as provided by law or become incapacitated to
v.Carale,GR.No.91636,April23,1992)
dischargethefunctionofhisoffice.


Q:HowdoestheNLRCadjudicatecases?
Provided, however, that the President of the

Philippines may extend the services of the
A:
Commissioners and LAs up to the maximum age of
1. The NLRC adjudicates cases by division. A
70 years upon the recommendation of the
concurrence of 2 votes is needed for a

177
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UST GOLDEN NOTES 2011

Commissionenbanc.
A:Theappealshouldnotprosper.TheSC,inmany
Q: Some disgruntled members of Bantay cases, has ruled that decisions made by the NLRC
Labor Union filed with the Regional Office of the maybebasedonpositionpapers.Inthequestion,it
DOLE a written complaint against their union isstatedthatthepartiesagreedtosubmitthecase
officers for mismanagement of union funds. The for resolution after the submission of position
Regional Director (RD) did not rule in the papers and evidence. Given this fact, the striker
complainants' favor. Not satisfied, the membersofBcannotnowcomplainthattheywere
complainants elevated the RDs decision to the denied due process. They are in estoppel. After
NLRC. The union officers moved to dismiss on the voluntarily submitting a case and encountering an
groundoflackofjurisdiction.Aretheunionofficers adversedecisiononthemerits,itistoolateforthe
correct?Why? loser to question the jurisdiction or power of the
court. A party cannot adopt a posture of double
A:Yes,theunionofficersarecorrectinclaimingthat dealing. (Marquez vs. Secretary of Labor, G.R. No.
the NLRC has no jurisdiction over the appealed 80685,March16,1989).(2001BarQuestion)
ruling of the RD. in Barles v. Bitonio, G.R. No.
120220,June16,1999,theSCruled: Q: Is barangay conciliation available in labor
cases?
Appellate authority over decisions of the RD
involvingexaminationofunionaccountsisexpressly A: No. Labor cases are not subject to barangay
conferred on the Bureau of Labor Relations (BLR) Conciliation since ordinary rules of procedure are
under the Rule of Procedure on Mediation merely suppletory in character visvis labor
Arbitration. disputes which are primarily governed by labor
laws. (Montoya v. Escayo, G.R. No. 8221112,Mar.
Sec. 4. Jurisdiction of the BLR (b) The BLR shall 21,1989)
exercise appellate jurisdiction over all cases
originating from the RD involving complaints for Q:WhatarethepowersoftheNLRC?
examinationofunionbooksofaccounts.
A:
The language of the law is categorical. Any 1. Rule making power promulgation of
additional explanation on the matter is rulesandregulations:
superfluous."(2001BarQuestion) a. Governing disposition of cases
before any of its division/regional
Q:Company"A"andUnion"B"couldnotresolve offices.
their negotiations for a new CBA. After b. Pertainingtoitsinternalfunctions
conciliation proceedings b e f o r e t h e NCMB c. Asmaybenecessarytocarryoutthe
proved futile, Bwentonstrike.Violenceduring purposesoftheLaborCode.
the strike prompted A to file charges against 2. Power to issue compulsory processes
strikermembers of B for their illegal acts. The (administer oaths, summon parties, issue
SLE assumed jurisdiction, referred the strike to subpoenas)
the NLRC and issued a returntowork order. 3. Power to investigate matters and hear
The NLRC directedthe parties to submit their disputes within its jurisdiction
respective position papers and documentary (adjudicatory power original and
evidence. At the initial hearing before the NLRC, appellatejurisdictionovercases)
the parties agreed to submit the case for 4. Contemptpower
resolution after the submission of the position 5. OcularInspection
papersandevidence. 6. Powertoissueinjunctionsandrestraining
orders
Subsequently, the NLRC issued an arbitral award
resolving the disputed provisions of the CBA and b.EffectofNLRCreversalofLaborArbitersorderof
ordered the dismissal of certain strikers for reinstatement
having knowingly committed illegal acts during
the strike. The dismissed employees elevated Q: May dismissed employees (Ees) collect their
their dismissal to the CA claiming that they wages during the period between the Labor
were deprived of their right to due process and Arbiters (LAs) order of reinstatement pending
that the affidavits submitted by A were self appeal and the NLRC decision overturning that of
serving and of no probative value. Should the theLA?
appeal prosper? State the reason(s) for your
answerclearly.

178
LABORLAWTEAM:
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PROCEDURE AND JURISDICTION

A: Yes. Par. 3 of Art. 223 of the Labor Code appeal or petition for certiorari. (Ginete v. Sunrise
provides that the decision of the LA reinstating a ManningAgency,G.R.No.142023,June21,2001)
dismissed or separated Ee, insofar as the
reinstatement aspect is concerned, shall Q: What is an injunction or a temporary
immediatelybeexcutory,pendingappeal. restrainingorder(TRO)?

Even if the order of reinstatement of the LA is A: Orders which may require, forbid, or stop the
reversed on appeal, it is obligatory on the part of doingofanact.ThepoweroftheNLRCtoenjoinor
theemployer(Er)toreinstateandpaythewagesof restrain the commission of any or all prohibited or
the dismissed Ee during the period of appeal until unlawfulactsunderArt.218ofLaborCodecanonly
reversalbythehighercourt.Ontheotherhand,if beexercisedinalabordisputes.
theEehasbeenreinstatedduringtheappealperiod
and such reinstatement order is reversed with Note: A restraining order is generally regarded as an
finality, the Ee is not required to reimburse ordertomaintainthesubjectofcontroversyinstatus
whatever salary he received for he is entitled to quountilthehearingofanapplicationforatemporary
such, more so if he actually rendered services injunction. (BF Homes v. Reyes, G.R. No. L30690
during the period. (Pfizer v. Velasco, G.R. No. November19,1982)
177467,March9,2011)
Q:WhomayissueaTRO?
c.RequirementstoperfectappealtoCourtof
Appeals A:
1. President(Art.263[g])
Q: Is judicial review of the NLRCs decision 2. SecretaryofLabor(Art.263[g])
available? 3. NLRC(Art.218)

A: Yes, through petitions for certiorari (Rule 65) Note: Art. 218 of the Labor Code limits the grant of
which should be initially filed with the CA in strict injunctive power to the NLRC. The LA is excluded
observance of the doctrine on the hierarchy of statutorily. Hence, no NLRC Rules can grant him that
courts as the appropriate forum for the relief power.
desired.TheCAisprocedurallyequippedtoresolve
unclear or ambiguous factual finding, aside from Q: What is the procedure for the issuance of
the increased number of its component divisions. restrainingorder/injunction?
(St.MartinFuneralHomev.NLRC,G.R.No.130866,
Sep.16,1998) A:
1. Filingofaverifiedpetition
Q: Within what period should the petition for 2. Hearingafterdueandpersonalnoticehas
certioraribefiledwiththeCourtofAppeals? been served in such manner as the
Commissionshalldirectto:
A: Under Section 4, Rule 65 (as amended by A.M. a. All known persons against whom
No.00203SC)oftheRulesofCivilProcedure,the reliefissought
petition must be filed within sixty (60) days from b. Also the Chief Executive or other
notice of the judgment or from notice of the public officials of the province or
resolution denying the petitioners motion for city within which the unlawful acts
reconsideration. This amendment is effective have been threatened or
September1,2000,butbeingcurativemaybegiven commercial charged with the duty
retroactiveapplication.(Narzolesv.NLRC,G.R.No. to protect the complainants
141959,Sep.29,2000) property.
3. Reception at the hearing of the
The period within which a petition for certiorari testimonies of the witnesses with
againstadecisionoftheNLRCmaybefiledshould opportunity for crossexamination, in
be computed from the date counsel of record of support of the allegations of the
the party receives a copy of the decision or complaint made under oath as well as
resolution,andnotfromthedatethepartyhimself testimonyinoppositionthereto.
receives a copy thereof. Article 224 of the Labor 4. Finding of fact of the Commission to the
Code,whichrequiresthatcopiesoffinaldecisions, effectthat:
orders or awards be furnished not only the partys a. Prohibited or unlawful acts have
counselofrecordbutalsothepartyhimselfapplies been threatened and will be
totheexecutionthereofandnottothefilingofan committed,orhavebeenandwillbe
continued unless restrained, but no

179
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UST GOLDEN NOTES 2011

injunction or TRO shall be issued on 4. POEA


account of any threat, prohibited or 5. OWWA
unlawful act, except against the 6. SSSECC
persons, association or organization 7. RTWPB
makingthethreatorcommittingthe 8. NWPC
prohibitedorunlawfulactoractually 9. Regular courts over intracorporate
authorizing or ratifying the same disputes.

afteractualknowledgethereof.
Q:Whoisamediatorarbiter?
b. The substantial and irreparable

injurytothecomplainantsproperty.
Note: Irreparable Injury an injury
A: An officer in the Regional Office or Bureau
which cannot be adequately authorized to hear, conciliate and decide
compensated in damages due to the representation cases or assist in the disposition of
natureoftheinjuryitselforthenature intraorinteruniondisputes.
of the right or property injured or
when there exist no pecuniary Q: What kinds of cases fall within BLRs
standard for the measurement of jurisdiction?
damages.
c. That as to each item of relief to be A: The BLR has original and exclusive jurisdiction
granted, greater injury will be over:
inflicted upon the complainant by
the denial of the relief than will be 1. Interuniondisputes
inflicteduponthedefendantsbythe 2. Intrauniondisputes
grantingoftherelief. 3. Otherrelatedlaborrelationsdisputes
d. That complainant has no adequate
remedyatlaw Q: What is the coverage of inter/intraunion
Note: Adequate remedy one that disputes?
affords relief with reference to the
matter in controversy and which is A:Theyshallinclude:
appropriate to the particular
circumstances of the case if the 1. Conduct or nullification of election of
remedyisspecificallyprovidedby law. unionandworkersassociationofficers
(PALv.NLRC,GR.No.120567,Mar.20, 2. Audit/accounts examination of union or
1998)
workersassociationfunds
e. Thatpublicofficerschargedwiththe
3. Deregistration of collective bargaining
duty to protect complainants
agreements(CBAs)
property are unable or unwilling to
4. Validity/invalidity of union affiliation or
furnishadequateprotection.
disaffiliation
5. Postingofabond.
5. Validity/invalidity of acceptance/ non

acceptanceforunionmembership
3.BUREAUOFLABORRELATIONS(BLR)MED
6. Validity/invalidityofvoluntaryrecognition
ARBITERS
7. Opposition to application for union or

CBAregistration
a.Jurisdiction
8. Violations of or disagreements over any

provision of the constitution and bylaws


Q: What is covered by the BLRs jurisdiction and
ofunionorworkersassociation
functions?
9. Disagreements over chartering or

registration of labor organizations or the


A: The BLR no longer handles all labor
registrationofCBAs;
management disputes; rather its functions and
10. Violations of the rights and conditions of
jurisdictionarelargelyconfinedto:
membership in a union or workers
1. Unionmatters
association;
2. Collectivebargainingregistryand
11. Violationsoftherightsoflegitimatelabor
3. Laboreducation.
organizations(LLO),exceptinterpretation

ofCBAs;
Note:Jurisdictionoverlabormanagementproblemsor
12. Validity/invalidity of impeachment/
disputesisalsoexercisedbyotheroffices:
1. DOLERegionalOffices
expulsion/suspension or any disciplinary
2. OfficeoftheSecretaryofLabor action meted against any officer and
3. NLRC member, including those arising from

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PROCEDURE AND JURISDICTION

noncompliance with the reportorial 5. Lackofjurisdictionoftheinvestigatingbody;


requirementsunderRuleV; action for the administrative agency is
13. Such other disputes or conflicts involving patentlyillegal,arbitraryandoppressive;
the rights to selforganization, union 6. Issueispurelyaquestionoflaw;
membershipandCB 7. Where the administrative agency had
a. BetweenandamongLLOand alreadyprejudgedthecase;and
b. Between and among members of a 8. Where the administrative agency was
practically given the opportunity to act on
unionorworkersassociation.(Sec.1,
thecasebutitdidnot.
Rule XI, Book V, IRR as amended by

D.O.40F03)
Q: May a decision in an inter/intraunion dispute

beappealedfrom?
Q: What is covered by the phrase other related

laborrelationsdisputes?
A:Yes.


A:
Q:Withinwhatperiodmayanappealtoadecision
1. Anyconflictbetween:
of the medarbiter or regional director in an
a.Alaborunionandtheemployer(Er);or
inter/intrauniondisputebefiled?
b.Alaborunionandagroupthatisnota

labororganization(LO);or
A: The decision may be appealed by any of the
c. Alaborunionandanindividualwhois
parties within 10 days from receipt thereof. (Sec.
notamemberofsuchunion
16,RuleXI,D.O.4003)
2. Cancellationofregistrationofunionsand
workersassociationsfiledbyindividual/s Q:Towhomisthedecisionappealable?
other than its members, or group that is
notaLO. A:Thedecisionisappealabletothe:
3. ApetitionforInterpleaderinvolvinglabor 1. Bureau of Labor Relations (BLR): if the
relations. (Sec. 2, Rule XI, Book V, IRR as case originated from the MedArbiter or
amendedbyD.O.40F03) RegionalDirector;
2. SLE:ifthecaseoriginatedfromtheBLR.
Q:Whomayfileacomplaintorpetitioninvolving
intra/interuniondisputes? Q: What is the extent of the Bureau of Labor
Relations(BLRs)authority?
A: A legitimate labor organization or its members.
(Sec.5,RuleXI,D.O.4003) A:
1. Itmayholdareferendumelectionamong
Q: What if the issue involves the entire the members of a union for the purpose
membership? ofdeterminingwhetherornottheydesire
tobeaffiliatedwithafederation.
A:Thecomplaintmustbesignedbyatleast30%of
theentiremembershipoftheunion. 2. ButtheBLRhasnoauthorityto:

Q:Whatiftheissueinvolvesamemberonly? a. Order a referendum among union
memberstodecidewhethertoexpel
A: Only the affected member may file the orsuspendunionofficers.
complaint.(Sec.5,RuleXI,D.O.4003) b. Forward a case to the Trade Union
Congress of the Philippines for
Note:
arbitrationanddecision.
GR:Redressmustfirstbesoughtwithintheunion

itself in accordance with its constitution and by
Q: Is Katarungang Pambarangay applicable to
laws
labordisputes?
XPNs:
1. Futilityofintraunionremedies; A: No. Art. 226 of the LC grants original and
2. Improperexpulsionprocedure; exclusive jurisdiction over the conciliation and
3. Undue delay in appeal as to constitute mediationofdisputesgrievancesorproblemsinthe
substantialinjustice; regionalofficesoftheDOLE.ItistheBureauandits
4. Theactionisfordamages; divisions (now the NCMB) and not the Barangay
Lupong Tagapamayapa which are vested by law
with original and exclusive authority to conduct

181
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UST GOLDEN NOTES 2011

conciliation and mediation proceedings on labor 3. Towhomappealable


controversies before endorsement to the a. BLRifthecaseoriginatedfromthe
appropriatelaborarbiterforadjudication. MedArbiter/RegionalDirector.
b. SLEifthecaseoriginatedfromthe
Note: ConciliationMediation is now done by the BLR.
NCMB,notBureauLaborRelations. 4. Where Filed Regional Office or to the
BLR, where the complaint originated
Q: What are the administrative functions of the (records are transmitted to the BLR or
BureauLaborRelations(BLR)? Sec. within 24 hours from the receipt of
the memorandum of appeal). (Rule XI,
A: D.O.4003)
1. Regulationofthelaborunions
2. Keepingtheregistryoflaborunions
3. MaintenanceofafileoftheCBA 4.NATIONALCONCILIATIONANDMEDIAITON
4. Maintenanceofafileofallsettlementsor BOARD(NCMB)
final decisions of the SC, CA, NLRC and
otheragenciesonlabordisputes Q: What are the alternative modes of settlement
oflabordisputeunderArt.211oftheLaborCode?
Q: What are the effects of filing or pendency of
inter/intrauniondisputeandotherlaborrelations A:
disputes? 1. VoluntaryArbitration
2. Conciliation
A: 3. Mediation
1. Therightsrelationshipsandobligationsof
thepartylitigantsagainsteachotherand a.Conciliationvs.Mediation
other partiesininterest prior to the
institution of the petition shall continue Q:WhatisConciliatonandMediation?
to remain during the pendency of the
petitionanduntilthedateofthedecision A:
rendered therein. Thereafter, the rights, CONCILIATION MEDIATION
relationshipsandobligationsoftheparty Is conceived of as a Isamildintervention
litigants against each other and other mild form of by a neutral third
partiesininterest shall be governed by intervention by a party
thedecisionordered. neutralthirdparty
The conciliator The conciliator
2. The filing or pendency of any inter/intra Mediator, relying on mediator, whereby
union disputes is not a prejudicial his persuasive hestartsadvisingthe
question to any petition for certification expertise, who takes parties or offering
an active role in solutions or
election, hence it shall not be a ground
assisting parties by alternatives to the
for the dismissal of a petition for
trying to keep problems with the
certification of election or suspension of disputants talking, end in view of
the proceedings for the certification of facilitating other assisting them
election.(Sec.3,RuleXI,DO4003) procedural niceties, towards voluntarily
carrying messages reaching their own
Q: State the rules on appeal in intra/interunion back and forth mutually acceptable
disputes. between the parties, settlement of the
andgenerallybeinga dispute
A: goodfellowwhotries
1. FormalRequirements to keep things calm
a. Underoath and forwardlooking
b. Consistofamemorandumofappeal. inatensesituation
c. Based on either of the following It is the process Itiswhena3rdparty
grounds: whereadisinterested studies each side of
i. Graveabuseofdiscretion 3rd party meets with the dispute then
ii. Grossviolationoftherules management and makes proposals for
iii. Withsupportingargumentsand labor, at their the disputants to
requestorotherwise, consider. The
evidence
during a labor mediator cannot
2. Period within 10 days from receipt of
dispute or in make an award nor
decision.

182
LABORLAWTEAM:
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MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM

PROCEDURE AND JURISDICTION

collective bargaining renderadecision of the problem, a request may be filed in the


conferences, and by form of consultation, notice of preventive
coolingtempers,aids mediationornoticeofstrike/lockout.
in reaching an
agreement Q: Where can a request for Conciliation and
Mediationbefiled?

Conciliation is conceived of as a mild form of A:Aninformalorformalrequestforconciliation
intervention by a neutral third party, the and mediation service can be filed at the NCMB
ConciliatorMediator, relying on his persuasive Central Office or any of its Regional Branches.
expertise, who takes an active role in assisting There are at present fourteen (14) regional
parties by trying to keep disputants talking, offices of the NCMB which are strategically
facilitating other procedural niceties, carrying located all over the country for the convenient
messages back and forth between the parties, useofprospectiveclients.
and generally being a good fellow who tries to
keepthingscalmandforwardlookinginatense b.PreventiveMediation
situation.
Q:WhatisPreventiveMediationCases?
rd
It is the process where a disinterested 3 party
meetswithmanagementandlabor,attheirrequest A: Refer to the potential labor disputes which
orotherwise,duringalabordisputeorincollective are the subject of a formal or informal request
bargaining conferences, and by cooling tempers, for conciliation and mediation assistance sought
aidsinreachinganagreement. byeitherorbothpartiesorupontheinitiativeof
theNCMBtoavoidtheoccurrenceofactuallabor
Mediationisamildinterventionbyaneutralthird disputes.
party, the ConciliatorMediator, whereby he starts
advising the parties or offering solutions or Q: What are the valid issues for a notice of
alternativestotheproblemswiththeendinviewof strike/lockoutorpreventivemediationcase?
assisting them towards voluntarily reaching their
ownmutuallyacceptablesettlementofthedispute. A: A notice of strike or lockout maybe filed on
ground of unfair labor practice acts, gross
rd
It is when a 3 party studies each side of the violation of the CBA, or deadlock in collective
disputethenmakesproposalsforthedisputantsto bargaining. A complaint on any of the above
consider.Themediatorcannotmakeanawardnor ground must be specified in the NCMB Form or
renderadecision. theproperformusedinthefilingofcomplaint.

Q:WhatistheLegalBasisofConciliationand In case of preventive mediation, any issue
Mediation? maybebroughtbeforetheNCMBCentralOffice
oritsregionalofficesforconciliationandpossible
A:Article13,Section3,ofourNewConstitution settlementthroughaletter.Thismethodismore
provides: preferable than a notice of strike/lockout
The State shall promote xxx the preferential because of the nonadversarial atmosphere that
use of voluntary modes of setting disputes pervadesduringtheconciliationconferences.
including conciliation and shall ensure mutual
compliance by the parties thereof in order to Q: What advantage can be derived from
fosterindustrialpeace. conciliationandmediationservices?

Note: A similar provision is echoed in the A: Conciliation and mediation is non
Declaration of Policy under Article 211 (a) of the litigious/nonadversarial, less expensive, and
LaborCode,asamended. expeditious. Under this informal setup, the
parties find it more expedient to fully ventilate
Q:WhocanavailofConciliationandMediation their respective positions without running
ServicesoftheNCMB? around with legal technicalities and, in the
course thereof, afford them a wider latitude of
A:Anypartytoalabordispute,eithertheunion possibleapproachestotheproblem.
or management, may seek the assistance
of NCMB or any of its Regional Branches by Q: Are the parties bound by the agreement
means of formal request for conciliation and enteredintobythem?
preventive mediation. Depending on the nature

183
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE Facultad de Derecho Civil
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UST GOLDEN NOTES 2011

A: It is the submission of a dispute to an impartial


A:Certainly,thepartiesareboundtohonorany person for determination on the basis of evidence
agreement entered into by them. It must be andargumentsoftheparties.Thearbitersdecision
pointed out that such an agreement came into orawardisenforceableuponthedisputants.Itmay
existenceasaresultofpainstakingeffortsamong be voluntary (by agreement) or compulsory
the union, management, and the Conciliator (requiredbystatutoryprovision).(LuzonDevtBank
Mediator.Therefore,itisonlylogicaltoassume v. Assn of Luzon Devt Bank Employees, G.R. No.
that the Conciliator assigned to the case has to 120319,Oct.6,1995)
followupandmonitortheimplementationofthe
agreement. Q:Canthecourtfixresorttovoluntaryarbitration
(VA)?
Q: Is conciliation and mediation service still
possibleduringactualstrikeorlockout? A:ResorttoVAdispute,shouldnotbefixedbythe
court but by the parties relying on their strengths
A: Definitely, it is possible to subject an actual andresources.
strikeoractuallockouttocontinuingconciliation
and mediation services. In fact, it is at this Q:Whoarethepartiestolaborrelationscases?
criticalstagethatsuchconciliationandmediation
services by fully given a chance to work out A:
possible solution to the labor dispute. With the 1. Employeesorganization
ability of the ConciliatorMediator to put the 2. Management
parties at ease and place them at a cooperative 3. Thepublic
mood, the final solutions of all the issues
involvedmayyetbeeffectedandsettled. Note: Employer and Ees are active parties while the
publicandtheStatearepassiveparties.(Poquiz,2006,
Q:Whenthedisputehasalreadybeenassumed p.3)
or certified to the NLRC, is it also possible to
remandthesametoconciliationandmediation Q:Whatistheconceptoftripartism?
services?
A:Itistherepresentationof3sectors.Theseare:
A: Yes, the parties are not precluded from 1. Thepublicorthegovernment
availing the services of an NCMB Conciliator 2. Theemployers
Mediator as the duty to bargain collectively 3. Theworkers
subsists until the final resolution of all issues inpolicymakingbodiesofthegovt.
involved in the dispute. Conciliation is so
pervasive in application that, prior to a Q: Can workers insist that they be represented in
compulsory arbitration award, the parties are thepolicymakinginthecompany?
encouraged to continue to exhaust all possible
avenues of mutually resolving their dispute, A: No. Such kind of representation in the policy
especially through conciliation and mediation making bodies of private enterprises is not
services. ordained, not even by the Constitution. What is
provided for is workers participation in policy and
Q: What benefit can the parties have in decisionmaking process directly affecting their
appearingduringconciliationconferences? rights,benefits,andwelfare.

A: Generally speaking, any party appearing 5.DOLEREGIONALDIRECTORS
during scheduled conciliation conferences has
the advantage of presenting its position on the a.SmallMoneyClaims
labor controversy. The issue raised in the
complaint can be better ventilated with the Q: What is the rule on the recovery of simple
presence of the concerned parties. Moreover, moneyclaims?
the parties can observe a norm of conduct
usuallyfollowedinlikeforum. A:
1. The aggregate money claim of each
c.Artbitration employee (Ee) or househelper (HH) does
notexceedP5,000.
Q:Whatisarbitration? 2. TheclaimispresentedbyanEeorperson
employed in the domestic or household
serviceorHH.

184
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM

PROCEDURE AND JURISDICTION

3. TheclaimarisesfromErEerelationship. andother
4. The claimant does not seek laborlaws
reinstatement.

Note: In the absence of any of the ff. requisites, it is
the labor arbiter (LA) who shall have the jurisdiction
over the claims arising from ErEe relations, except Enforcement
Allotherclaims
claims for Ees compensation, SSS, Philhealth, and oflabor Limitedto
arisingfromEr
maternity benefits, pursuant to Art.217 of the Labor legislationin monetaryclaims
Eerelations
Code. general
LAdecidescase
The proceedings before the Regional Office shall be within30
summaryandnonlitigiousinnature. Proceedingis Initiatedby calendardays
anoffshootof sworncomplaints after
Q:WhatistheadjudicatorypoweroftheRegional routine filedbyany submissionof
Director(RD)? inspections interestedparty thecasebythe
partiesfor
A: The RD or any of his duly authorized hearing decision
officerisempoweredthroughsummaryproceeding Jurisdictional 1)Allother
and after due notice, to hear and decide cases reqts: claimsarising
involving recovery of wages and other monetary 1)Complaint fromErEe
claimsandbenefits,includinglegalinterests. arisesfromErEe relations
relationship

2)Including
Q:Anairlinewhichfliesboththeinternationaland
2)Claimantisan thoseof
domestic routes requested the SLE to approve the Eeorperson personsin
policy that all female flight attendants upon employedin domesticor
reaching age 40 with at least 15 years of service domesticor household
shall be compulsorily retired; however, flight No
household service
attendantswhohavereachedage40buthavenot jurisdictional
serviceoraHH
worked for 15 years will be allowed to continue reqts
3)Complaint 3)Involvingan
workinginordertoqualifyforretirementbenefits, doesNOTinclude amount
but in no case will the extension exceed 4 years. aclaimfor exceeding
Does the SLE have the authority to approve the reinstatement P5,000
policy?
4)Aggregate 4)Whetheror
A: Yes. Art.132 (d) of the Labor Code provides that moneyclaimof not
theSLEshallestablishstandardsthatwillensurethe EACHclaimant accompanied
safety and health of women employees including doesnotexceed withaclaimfor
the authority to determine appropriate minimum P5,000 reinstatement
age and other standards for retirement or Appealableto
SLE(Incase
termination in special occupations such as those of
compliance Appealableto Appealableto
flightattendantsandthelike.(1998BarQuestion)
orderisissued NLRC NLRC
byRegional
Q: What is the difference between the power of Office)
SecretaryofLaborandEmployment(SLE),Regional
Director(RD)andLaborArbiter(LA)? 6.DOLESECRETARY

A: a.VisitorialandEnforcementPowers
Art.128
Art.129 Art.217(a)(6)
VPandEPof
RD LA Q:Whatarethe3kindsofpowersoftheSecretary
SLE
ofLaborandEmployment(SLE)?
Inspectionof

establishments
andissuance A:
Adjudicationof LAexercises 1. Visitorialpowers
ofordersto
Eesclaimsfor originaland 2. Enforcementpowers
compel
wagesand exclusive 3. Appellateorpowertoreview
compliance
benefits jurisdiction
withlabor
standards, Q:Whatconstitutevisitorialpower?
wageorders

185
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE Facultad de Derecho Civil
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ


UST GOLDEN NOTES 2011

A: 4. Require Ers to keep and maintain such


1. Access to employers records and employmentrecordsasmaybenecessary
premisesatanytimeofthedayornight, in aid to the visitorial and enforcement
wheneverworkisbeingundertaken powers
2. Tocopyfromsaidrecords 5. Conduct hearings within 24 hours to
3. Question any employee and investigate determinewhether:
any fact, condition or matter which may a. An order for stoppage of work or
be necessary to determine violations or suspension of operations shall be
whichmayaidintheenforcementofthe liftedornot;and
Labor Code and of any labor law, wage b. Er shall pay employees concerned
order, or rules and regulation issued their salaries in case the violation is
pursuantthereto. attributabletohisfault.(Asamended
by RA 7730; Guico v. Secretary, G.R.
Q: Give 4 instances where the visitorial power of No.131750,Nov.16,1998)
theSLEmaybeexercisedundertheLaborCode.
Q:WhataretheviolationsunderArt.128?
A:Powerto:
A:
1. Inspect books of accounts and records of 1. Obstruct, impede, delay or otherwise
any person or entity engaged in renderineffectivetheordersoftheSLEor
recruitment and placement, require it to hisauthorizedrepresentatives
submit reports regularly on prescribed 2. Any government employee found guilty
forms and act in violations of any of,orabuseofauthority,shallbesubject
provisions of the LC on recruitment and to administrative investigation and
placement.(Art.37) summarydismissalfromservice.
2. Have access to employers records and
premises to determine violations of any Q:Whatarethelimitationstoothercourts?
provisions of the LC on recruitment and
placement.(Art.128) A: Inrelationtoenforcementordersissuedunder
3. Conduct industrial safety inspections of Art.128,noinferiorcourtorentityshall:
establishments.(Art.165)
4. Inquire into the financial activities of 1. Issue temporary or permanent injunction
legitimate labor organizations (LLO) and orrestrainingorderor
examinetheirbooksofaccountsuponthe 2. Assumejurisdictionoveranycase
filing of the complaint under oath and
dulysupportedbythewrittenconsentof Q: What are the instances when enforcement
at least 20% of the total membership of powermaynotbeused?
theLOconcerned.
A:
Q:Whatisenforcementpower? 1. Case does not arise from the exercise of
visitorialpower
A:ItisthepoweroftheSLEto: 2. WhenErEerelationshipceasedtoexistat
thetimeoftheinspection
1. Issuecomplianceorders 3. If employer contests the finding of the
2. Issue writs of execution for the Labor Regulation Officer and such
enforcement of their orders, except in contestable issue is not verifiable in the
cases where the employer (Er) contests normalcourseofinspection
thefindingsofthelaborofficerandraise
issues supported by documentary proof b.PowertoSuspendEffectsofTerminationArt.277
which were not considered in the course (b),LC
ofinspection
3. Order stoppageof work or suspension of Q: Does the DOLE Secretary have the power to
operationwhennoncompliancewiththe suspendtheeffectsoftermination?
laworimplementingrulesandregulations
poses grave and imminent danger to A:Yes,underArticle277(b)oftheLaborCode,the
health and safety of workers in the Secretary of Labor may suspend the effects of the
workplace terminationpendingresolutionofthedisputeinthe
event of a prima facie finding by the appropriate

186
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM

PROCEDURE AND JURISDICTION

official of the Department of Labor and Q: Who will designate the voluntary arbitrator
Employment before whomsuch dispute is pending (VA)/panelincasethepartiesfailtoselectone?
that the termination may cause serious labor
disputeorisinimplementationofamasslayoff. A:ItistheNCMBthatshalldesignatetheVA/panel
based on the selection procedure provided by the
CBA. (Manila Central Line Free Workers Union v.
7.VOLUNTARYARBITRATORS Manila Central Line Corp., G.R. No. 109383, June
15,1998)
a.SubmissionAgreement
Q: May Labor Arbiters (LA) be designated as
Q:Howisarbitrationinitiated? voluntaryarbitrators(VA)?

A: A:Yes.ThereisnothinginthelawthatprohibitsLAs
1. Submission agreement Where the fromalsoactingasVAsaslongasthepartiesagree
partiesdefinethedisputestoberesolved tohavehimhearanddecidetheirdispute.(Manila
2. Demand notice Invoking collective Central Line Free Workers Union v. Manila Central
agreementarbitrationclause LineCorp.,G.R.No.109383,June15,1998)

Q:Whoisavoluntaryarbitrator(VA)? Q: What falls under the jurisdiction of Voluntary
Arbitrators(VA)?
A:
1. Any person accredited by the NCMB as A: Generally, the arbitrator is expected to decide
such only those questions expressly delineated by the
2. Any person named or designated in the submission agreement. Nevertheless, the
CBAbythepartiestoactastheirVA arbitrator can assume that he has the necessary
3. One chosen with or without the power to make a final settlement since arbitration
assistance of the NCMB, pursuant to a is the final resort for the adjudication of the
selection procedure agreed upon in the disputes. (Ludo and Luym Corp. v. Saornido, G.R.
CBA No.140960,Jan.20,2003)
4. Anyofficialthatmaybeauthorizedbythe
SLEtoactasVAuponthewrittenrequest Q:WhatcasesarewithinthejurisdictionofVA?
and agreement of the parties to a labor
dispute.(Art.212[n]) A:Originalandexclusivejurisdictionover:

Q:Whatarethepowersofavoluntaryarbitrator? 1. All unresolved grievances arising from
the:
A: a. Implementation or interpretation of
1. Holdhearings theCBA
2. Receiveevidence b. Interpretation or enforcement of
3. Take whatever action necessary to companypersonnelpolicies
resolve the dispute including efforts to
effect a voluntary settlement between 2. Wage distortion issues arising from the
parties.(Art.262A) application of any wage orders in
organizedestablishments
Q: How is a voluntary arbitrator (VA)/panel
chosen? 3. Those arising from interpretation and
implementation of productivity incentive
A: programsunderR.A.6971
1. The parties in a CBA shall designate in
advance a VA/panel, preferably from the 4. ViolationsofCBAprovisionswhicharenot
listingofqualifiedVAsdulyaccreditedby grossincharacterarenolongertreatedas
theNCMB,or ULP and shall be resolved as grievances
2. Includeintheagreementaprocedurefor undertheCBA
the selection ofsuch VA or panel of VAs,
preferably from the listing of qualified Note:GrossviolationofCBAprovisionsshall
VAs duly accredited by the NCMB. mean flagrant and/or malicious refusal to
(Art.260,par.3) comply with the economic provisions of
suchagreement.

187
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VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE Facultad de Derecho Civil
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ


UST GOLDEN NOTES 2011

5. Anyotherlabordisputesuponagreement A:GR:DecisionsofVAarefinalandexecutoryafter
by the parties including ULP and 10 calendar days from receipt of the copy of the
bargainingdeadlock.(Art.262) awardordecisionbytheparties.(Art.262A)

Q: May the NLRC and DOLE entertain XPNs:
disputes/grievances/matters under the exclusive 1. AppealtotheCAviaRule43oftheRules
and original jurisdiction of the voluntary of Court within 15 days from the date of
arbitrator? receipt of VAs decision. (Luzon Devt
Bank v. Assn of Luzon Devt Bank Ees,
A:No.Theymustimmediatelydisposeandreferthe G.R.No.120319,Oct.6,1995)
same to the grievance machinery or voluntary 2. If decision of CA is adverse to a party,
arbitrationprovidedintheCBA appeal to the SC via Rule 45 on pure
questionsoflaw.
The parties may choose to submit the dispute to
voluntary arbitration proceedings before or at the Note:AVAbythenatureofherfunctionsactsinquasi
stageofcompulsoryarbitrationproceedings. judicial capacity. There is no reason why the VAs
decisions involving interpretation of law should be
Q: What is the effect of the award of voluntary beyond the SCs review. Administrative officials are
arbitrator(VA)? presumedtoactinaccordancewithlawandyettheSC
will not hesitate to pass upon their work where a
A:ThedecisionorawardoftheVAactingwithinthe question of law is involved or where a showing of
abuseofauthorityordiscretionintheirofficialactsis
scope of its authority shall determine the rights of
properly raisedin petitions for certiorari. (Continental
thepartiesandtheirdecisionsshallhavethesame
MarbleCorporationv.NLRC,G.R.No.L43825,May9,
legal effects as judgment of the courts. Such 1988)
mattersonfactandlawareconclusive.
Q: PSSLU had an existing CBA with Sanyo Phils.,
Q: Are both the employer and the bargaining Inc. which contains a union security clause which
representative of the employees required to go provides that: all members of the union covered
through the grievance machinery in case a by this agreement must retain their membership
grievancearises? ingoodstandingintheunionasconditionofhis/
her continued employment with the company.
A: Yes, because it is but logical, just and equitable On account of antiunion activities, disloyalty and
that whoever is aggrieved should initiate for joining another union, PSSLU expelled 12
settlement of grievance through the grievance employees (Ees) from the Union. As a result,
machinery. To impose compulsory procedure on PSSLU recommended the dismissal of said Ees
employersalonewouldbeoppressiveofcapital. pursuant to the union security clause. Sanyo
approvedtherecommendationandconsideredthe
Q: Who has jurisdiction over actual termination said Ees dismissed. Thereafter, the dismissed Ees
disputes and complaints for illegal dismissal filed filed with the Arbitration Branch of the NLRC a
byworkerspursuanttotheunionsecurityclause? complaintforillegaldismissal.

A: The Labor Arbiter and not the grievance Does the voluntary arbitrator (VA) have
machinery. jurisdictionoverthecase?

Q:Whatisthenatureofthepowerofavoluntary A: No, the VA has no jurisdiction over the case.
arbitrator? Although the dismissal of the Ees concerned was
made pursuant to the union security clause
A:Arbitratorsbythenatureoftheirfunctions,act provided in the CBA, there was no dispute
inaquasijudicialcapacity(BP129,asamendedby whatsoever between PSSLU and Sanyo as regards
R.A. 9702); where a question of law is involved or the interpretation or implementation of the said
thereisabuseofdiscretion,courtswillnothesitate union security clause. Both PSSLU and Sanyo are
topassuponreviewoftheiracts. united and have come to an agreement regarding
the dismissal of the Ees concerned. Thus there is
b.Rule43,RulesofCourt no grievance between the union and management
whichcouldbebroughttothegrievancemachinery.
Q: Are decisions of voluntary arbitrators (VAs) The dispute is between PSSLU and Sanyo, on the
appealable? one hand, and the dismissed union members, on
the other hand. The dispute therefore, does not

188
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM

PROCEDURE AND JURISDICTION

involve the interpretation or implementation of a Darbys counsel considered that issue as having
CBA. (Sanyo Philippines Workers UnionPSSLU v. dual aspects and intended in his own mind to
Canizares,G.R.No.101619,July8,1992) submit only one of those aspects to the VA, if he
did, however, he failed to reflect his thinking and
Q: X was employed as telephone operator of intent in the arbitration agreement. (Sime Darby
Manila Midtown Hotel. She was dismissed from Phils.v.Magsalin,G.R.No.90426,Dec.15,1989)
her employment for committing the following
violations of offenses subject to disciplinary Q:Apalisok,productionchiefforRPNStation,was
actions, namely: falsifying official documents and dismissed due to her alleged hostile, arrogant,
culpable carelessnessnegligence or failure to disrespectful, and defiant behavior towards the
follow specific instructions or established Station Manager. She informed RPN that she is
procedures. X then filed a complaint for illegal waiving her right to resolve her case through the
dismissalwiththeArbitrationbranchoftheNLRC. grievance machinery as provided in the CBA. The
The Hotel challenged the jurisdictionof the Labor voluntary arbitrator (VA) resolved the case in the
Arbitrator (LA) on the ground that the case falls employees(Ees)favor.
within the jurisdictional ambit of the grievance
procedure and voluntary arbitration under the Onappeal,theCAruledinfavorofRPNbecauseit
CBA. considered the waiver of petitioner to file her
complaint before the grievance machinery as a
DoestheLAhavejurisdictionoverthecase? relinquishment of her right to avail herself of the
aidoftheVA.TheCAsaidthatthewaiverhadthe
A: Yes, the LA has jurisdiction. The dismissal of X effect of resolving an otherwise unresolved
doesnotcallfortheinterpretationorenforcement grievance, thus the decision of the VA should be
ofcompanypersonnelpoliciesbutisatermination setasideforlackofjurisdiction.Istherulingofthe
dispute which comes under the jurisdiction of the CAcorrect?
LA. The dismissal of X is not an unresolved
grievance.Neitherdoesitpertaintointerpretation A: No. Art. 262 of the Labor Code provides that
ofcompanypersonnelpolicy.(Manejav.NLRC,G.R. uponagreementoftheparties,theVAcanhearand
No.124013,June5,1998) decideallotherlabordisputes.

Q: Sime Darby Salaried Employees (Ees) Contrary to the finding of the CA, voluntary
AssociationALU (SDSEAALU) wrote petitioner arbitration as a mode of settling the dispute was
Sime Darby Pilipinas (SDP) demanding the notforceduponrespondents.Bothpartiesindeed
implementationofaperformancebonusprovision agreed to submit the issue of validity of the
identical to the one contained in their own CBA dismissalofpetitionertothejurisdictionoftheVA
with SDP. Subsequently, SDP called both by the Submission Agreement duly signed by their
respondent SDEA and SDEAALU to a meeting respective counsels. The VA had jurisdiction over
wherein the former explained that it was unable thepartiescontroversy.
togranttheperformancebonus.Inaconciliation
meeting, both parties agreed to submit their TheEeswaiverofheroptiontosubmithercaseto
dispute to voluntary arbitration. Their agreement grievance machinery did not amount to
toarbitratestated,amongotherthings,thatthey relinquishing her right to avail herself of voluntary
were"submittingtheissueofperformancebonus arbitration.(Apalisokv.RPN,G.R.No.138094,May
tovoluntaryarbitration." 29,2003)

Doesthevoluntaryarbitrator(VA)havethepower 8.COURTOFAPPEALS
topassuponnotonlythequestionofwhetherto
grant the performance bonus or not but also to Q: Is judicial review of the NLRCs decision
determinetheamountthereof? available?

A:Yes,intheiragreementtoarbitrate,theparties A: Yes, through petitions for certiorari (Rule 65)
submitted to the VA the issue of performance which should be initially filed with the CA in strict
bonus.Thelanguageoftheagreementtoarbitrate observance of the doctrine on the hierarchy of
may be seen to be quite cryptic. There is no courts as the appropriate forum for the relief
indication at all that the parties to the arbitration desired.TheCAisprocedurallyequippedtoresolve
agreement regarded the issue of performance unclear or ambiguous factual finding, aside from
bonusasatwotieredissue,onlyonetierofwhich the increased number of its component divisions.
wasbeingsubmittedtoarbitration.Possibly,Sime

189
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE Facultad de Derecho Civil
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ


UST GOLDEN NOTES 2011

(St.MartinFuneralHomev.NLRC,G.R.No.130866, resolution appealed from. (Sea Power Shipping


Sep.16,1998) Enterprises, Inc. v. CA, G.R. No. 138270, June 28,
2001)
Note:Rule65,Section1,RulesofCourt
Note:Rule45,Section1,RulesofCourt:
Petition for CertiorariWhen any tribunal, board or
officerexercisingjudicialorquasijudicialfunctionshas FilingofpetitionwithSupremeCourt.Apartydesiring
actedwithoutorinexcessofitsorhisjurisdiction,or toappealbycertiorarifromajudgment,finalorderor
with grave abuse of discretion amounting to lack or resolution of the Court of
excess of jurisdiction, and there is no appeal, or any Appeals,theSandiganbayan,theCourtofTaxAppeals,
plain, speedy, and adequate remedy in the ordinary the Regional Trial Court or other courts, whenever
course of law, a person aggrieved thereby may file a authorized bylaw, may file withthe Supreme Court a
verifiedpetitioninthepropercourt,allegingthefacts verified petition for review on certiorari. The petition
withcertaintyandprayingthatjudgmentberendered may include an application for a writ of preliminary
annulling or modifying the proceedings of such injunctionorotherprovisionalremediesandshallraise
tribunal,boardorofficer,andgrantingsuchincidental only questions of law, which must be distinctly set
reliefsaslawandjusticemayrequire. forth. The petitioner may seek the same provisional
remediesbyverifiedmotionfiledinthesameactionor
The petition shall be accompanied by a certified true proceedingatanytimeduringitspendency.
copy of the judgment, order or resolution subject
thereof, copies of all pleadings and documents Q:GivethepolicyoftheSupremeCourtregarding
relevant and pertinent thereto, and a sworn appealsinlaborcases.
certificationofnonforumshoppingasprovidedinthe
thirdparagraphofsection3,Rule46. A: The Supreme Court is very strict regarding
appeals filed outside the reglementary period for
Q: Within what period should the petition for filingthesame.Toextendtheperiodoftheappeal
certioraribefiledwiththeCourtofAppeals? is to delay the case, a circumstance which could
give the employer the chance to wear out the
A: Under Section 4, Rule 65 (as amended by A.M. efforts and meager resources of the worker that
No.00203SC)oftheRulesofCivilProcedure,the the latter is constrained to give up for less than
petition must be filed within sixty (60) days from whatisduehim.(FirestoneTireandRubberCo.of
notice of the judgment or from notice of the the Philippines v. FirestoneTire and Rubber Co.
resolution denying the petitioners motion for EmployeesUnion,G.R.No.75363,Aug.4,1992)
reconsideration. This amendment is effective
September1,2000,butbeingcurativemaybegiven 10.PRESCRIPTIONOFACTIONS
retroactiveapplication.(Narzolesv.NLRC,G.R.No.
141959,Sep.29,2000) Q:Givetherulesasregardstheprescriptiveperiod
providedforintheLaborCode(LC).
The period within which a petition for certiorari
againstadecisionoftheNLRCmaybefiledshould A:
be computed from the date counsel of record of SUBJECT PRESCRIPTIVEPERIOD
the party receives a copy of the decision or Offensespenalized
resolution,andnotfromthedatethepartyhimself 3years
undertheLC
receives a copy thereof. Article 224 of the Labor One(1)yearfrom
Code,whichrequiresthatcopiesoffinaldecisions, accrualofsuchULP;
orders or awards be furnished not only the partys ULP
otherwiseforever
counselofrecordbutalsothepartyhimselfapplies barred(Art.290)
totheexecutionthereofandnottothefilingofan 3yearsfromthetime
appeal or petition for certiorari. (Ginete v. Sunrise thecauseofaction
MoneyClaims
ManningAgency,G.R.No.142023,June21,2001) accrued;otherwise
foreverbarred
9.SUPREMECOURT Withinone(1)year
fromthedateof
Allmoneyclaims
Q:Howdoesapartyappealfromajudgment,or effectivity,in
accruingpriortothe
finalorderorresolution,oftheCourtofAppeals? accordancewithIRR;
effectivityoftheLC
otherwise,theyshall
A: A party desiring to appeal may file with the foreverbebarred
Supreme Court a verified petition for review on Workmens Dec.31,1974shallbe
Compensationclaims filednotlaterthanMar.
certiorari under Rule 45 within fifteen (15) days
accruingpriortothe 31,1975beforethe
from notice of the judgment, final order or

190
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM

PROCEDURE AND JURISDICTION

effectivityoftheLCand appropriateregional
betweenNov.1,1974 officesofthe
Dec.31,1974 DepartmentofLabor.
(Art.291)
4years.Itcommences
torunfromthedateof
formaldismissal.
IllegalDismissalCases
(Mendozav.NLRC,G.R.
No.122481,Mar.5,
1998)

191
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE Facultad de Derecho Civil
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ