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UNIVERSITY OF SAN JOSE-RECOLETOS

SCHOOL OF LAW

COURSE OUTLINE FOR LABOR LAW 2

*Refer to the Labor Code and the Implementing Rules

I.

Introduction

  • a. Purpose and Elements of Labor Law

  • b. Social Justice

  • c. Branches of Labor Law

  • d. Sources of Labor Law

  • e. Worker’s Rights v. Management Prerogative

II.

Right to Self-Organization

DOLE Department Order No. 9. [21 June 1997], and Department Order No. 40, [17 February 2003], Rule II Republic Act No. 9481 (25 May 2007)

  • a. Constitutional Provisions

  • b. Coverage

    • 1. Rank and File Employees

    • 2. Supervisory Employees

Atlas Lithographic vs. Usec Laguesma, 205 SCRA 12

  • 3. Security Guards Philips Industrial Development vs. NLRC, 210 SCRA 339

  • 4. Alien Employees

  • c. Exclusion

    • 1. Government Employees

    • 2. Employees of Government-owned and Controlled Corporations with Original Charters

    • 3. Members of a Cooperative Benguet Electric Cooperative vs. Calleja, 180 SCRA 740 Republic of the Philippines represented by SSS vs. Asia Pro Cooperative, G.R. No. 172101, 23 Nov 2007

    • 4. Managerial Employees Sim vs. NLRC, 534 SCRA 515 [2007]

    • 5. Confidential Employees: Doctrine of Necessary Implication Philips Industrial Development vs. NLRC, 210 SCRA 339 Golden Farms vs. Sec. of Labor, 234 SCRA 517 Sugbuanon Rural Bank vs. NLRC, 324 SCRA 425 [2000] Tunay n aPagkakaisang Manggagawa sa Asia Brewery vs. Asia Brewery, G.R. No. 162025, 03 August 2010 De la Salle Univ. vs. DLSU-Employees Assn., 330 SCRA 363 [2000] San Miguel Corp. Supervisors and Exempt Union vs. Laguesma, 277 SCRA 370 [1997]

    • 6. Employees of International Organizations German Agency for Technical Cooperation (GTZ) vs. CA, GR No. 152318, 16 April 2009

III.

Labor Organization

DOLE Department Order No. 9. [21 June 1997], and

Department Order No. 40, [17 February 2003], Rule III Republic Act No. 9481 (25 May 2007)

  • a. Definitions

  • 1. Labor Organization

  • 2. Legitimate Labor Organization

  • 3. Company Union

  • 4. Legitimate Workers’ Association

  • b. Rationale for Unionization

  • c. Union registration and procedure

  • 1. Independent union, requirements for organization

  • 2. Affiliation with federation or national union, requirements for organization Chartered Local

San Miguel Corp [Mandaue PPP] vs. Mandaue Packing Products Plants San Miguel Corporation Monthlies and Rank-and-File Union FFW, 467 SCRA 107 [2005]

  • 3. Attestation Requirements

SMCC-SUPER vs. Charter Chemical and Coating Corp., GR 169717, 16 March 2011.

  • 4. Action by the Bureau of Labor Relations

  • 5. Reportorial Requirements

  • 6. Cancellation

  • 7. Voluntary Cancellation

Takata (Philippines) Corporation vs Bureau of Labor Relations and Salamat, G.R. No. 196276, June 04, 2014

 

Cases:

 

Mariwasa Siam Ceramics vs. Secretary of Labor, GR 183317, 21 December 2009

Eagle Ridge Golf and Country Club vs. Court of Appeals and EREU, G.R. No. 178989, 18 March 2010

The Heritage Hotel Manila vs. NUWHRAIN HHMSC), G.R. No. 178296, 12 January 2011 Rural Bank of Alaminos Employees Union vs. NLRC, 317 SCRA 669 (1999)

San Miguel Employees Union-PTGWO vs. San Miguel Packaging Products Employees Union PDMP, 533 SCRA 125 [2007]

SAMMA-LIKHA vs. SAMA Corp., G.R. No. 167141, 13 Mar 2009

Legend International Resorts vs. Kilusang Manggagawang Legenda, GR 169754, 23 February 2011.

  • d. Rights and conditions of membership

  • 1. Direct election and tenure of officers

Cruz vs. Calleja, 188 SCRA 520

  • 2. Payment of membership dues and other assessments

Palacol vs. Calleja, 182 SCRA 710

  • 3. Attorney’s Fees

Gabriel vs. Secretary of Labor, 328 SCRA 247 [2000]

  • e. Right to Disaffiliate from Mother Union Volkschel Labor Union vs. BLR, 137 SCRA 42 Philippine Skylanders Inc. vs. NLRC, G.R. 127374, 31 Jan. 2002 Cirtek Employees Labor Union FFW vs. Cirtek Electronics, GR 190516, 06 June 2011

IV.

Appropriate Bargaining Unit

Department Order No. 9. [21 June 1997], and Department Order No. 40, [17 February 2003] Republic Act No. 9481 [25 May 2007]

  • a. Bargaining unit defined

    • 1. Determination of appropriate bargaining unit

    • 2. General: Community of Interest Exception: Globe Doctrine -- Desire of Employees

3.

Ineligibility of Managerial Employees to Join any Labor Organization; Right of Supervisory Employees

  • 4. Effect of Inclusion as Members of Employees Outside the Bargaining Unit

  • V. Certification Election Department Order No. 9. [21 June 1997], and Department Order No. 40, [17 February 2003], RVIII Republic Act No. 9481 (25 May 2007)

    • a. Role of Employer during certification elections

    • b. Other kinds of recognition of employee representatives excluding certification elections

      • 1. Direct certification

      • 2. Voluntary recognition

      • 3. Consent election

  • c. Certification Election and Procedure

    • 1. Definition and nature of CE Exclusive Bargaining Representative NUHRWRAIN Manila Pavilion Hotel Chapter vs. Sec. of Labor, GR No. 181531, 31 July 2009 Mariwasa Siam Ceramics vs. Sec of Labor et al, GR 183317, 12/21/09

    • 2. Who may, and where to, file petition for CE

  • i.

    Challenging the petition for CE

    Toyota Motors vs. Toyota MPC Labor Union, 268 SCRA 571

    ii.

    Tagaytay Highlands Intl Golf Club, Inc. vs Tagaytay Highlands Employees Union PGTWO, 395 SCRA 699 [22 Jan 2003] Filing of petition for cancellation of Union’s registration: ULP?

    iii.

    Form and content of petition

    • 3. When to file petition for CE

    i.

    If unorganized establishment

    ii.

    If organized establishment

    o

    o

    No duly registered CBA

    With duly registered CBA

    • Contract bar rule - only during freedom period FVC Labor Union-PGTWO vs. Samasamang Nagkakaisang Mangggagawasa FVC-SIGLO, GR 176249, 27 November 2009

    • One year bar rule

    • Deadlock bar rule

    • d. Denial of Petition for Certification Election

      • 1. Grounds

      • 2. Appellate Procedure

  • e. Procedure in the Conduct of the Certification Elections

    • 1. Raffle and Pre-election Conference

    • 2. Qualification of Voters

  • NUHRWRAIN Manila Pavilion Hotel Chapter vs. Sec. of Labor, BLR, Holiday Inn Mnaila Pavilion Hotel Labor Unino and Acesite Phils.Hotel Corp., GR No. 181531, 31 July 2009

     

    3.

    Voting proper

    4.

    Challenging the Votes

    5.

    Canvass of Votes

    6.

    Certification of Collective Bargaining Agent

    • f. Run-off Elections

     
    • g. Failure of Elections

    VI.

    Inter-union and Intra-Union Disputes

    DOLE Department Order No. 40-03, series of 2003

    • a. Definition

     
     

    DLSU vs. DLSU Employees Association. G.R. No. 169254, 23 August 2012

    • b. Effects of pendency of inter- or intra-union disputes

    • c. Who may file?

     
    • d. Where to file?

    VII.

    Collective Bargaining

    Department Order No. 9. [21 June 1997], and

    Department Order No. 40, [17 February 2003]

    • a. Duty to bargain collectively

     

    1.

    Definition

    2.

    Kinds of Bargaining:

    3.

    When duty to bargain exists/begins

     

    i.

    No CBA

    ii.

    Existence of a CBA

     

    4.

    Effect of Refusal to Bargain

     

    Divine Word Univ. vs. NLRC, 213 SCRA 759 Colegio de San Juan de Letran vs. Assn of Employees and Faculty of Letran, 340 SCRA 587 [2000]

     

    5.

    When duty to bargain ceases

    6.

    Standard of conduct required

     

    Standard Chartered Bank Employees Union (NUBE) vs. Secretary Nieves

    Confesor and Standard Chartered Bank, GR No. 11497, 16 June 2004 Insular Life Assurance Employees-NATO vs. Insular Life Assurance Ltd., 76 SCRA 50

    • b. Bargainable Issues

     
    • c. Bargaining Deadlock

     

    1.

    When is there a deadlock in collective bargaining

     

    Capitol Medical Center Alliance of Concerned Employees vs. Laguesma, 267 SCRA 503 (1997)

     

    2.

    Economic v. Non-economic Provisions

     

    San Miguel Food vs. SMC Employees Union PTGWO, 535 SCRA 133

    [2007].

     

    3.

    Remedies

    VIII.

    Collective Bargaining Agreement

    Department Order No. 9. [21 June 1997], and

    Department Order No. 40, [17 February 2003]

    • a. Definition - B5 R1 S1 (jj), IRR Davao Integrated Port Stevedoring vs. Abarquez, 220 SCRA 197 PT&T vs. NLRC, 245 SCRA 193 [1995]

    • b. Contents

      • 1. Mandatory Subjects

        • i. Effect of Substandard Contract RFM Corp Flour Division vs. KAMPI-NAFLU-KMU, GR No. 162324, 04 February 2009

    ii.

    Grievance Procedure and Voluntary Arbitration

    San Miguel Corp. vs. NLRC, 204 SCRA 1 (1999)

    iii.

    No Strike, No Lockout Clause

    MalayangSamahanngmgaManggagawasa M Greenfield vs. Ramos, 326 SCRA 428 [2000]

    • 2. Union dues v. Agency fees/Special Assessments; Check-off Palacol vs. Calleja, 26 Feb. 1990 Holy Cross of Davao vs. Joaquin, 263 SCRA 358 [18 Oct 1996]

    • 3. Union Security Clauses: Nature and Kinds Bank of the Philippine Islands vs. BPI Employees Union - Davao Chapter - Federation of Unions in BPI Unibank, G.R. No. 164301, 10 August 2010 Olvido vs. CA, 536 SCRA 81 [2007] Inguillo vs. First Philippines Scales, Inc., 588 SCRA 471 [2009] PICOP Resources, Inc. (PRI) vs. AnacletoTañeca. al, G.R. No. 160828, 09 August 2010

    • 4. Signing bonus Caltex Refinery vs. Brillantes, 279 SCRA 218

    • 5. Interpretation in favor of Labor

    BPI vs. BPI Employees Union Metro Manila, G.R. No. 175678, 22 August 2012

    Philippine Journalist Inc. vs. Journal Employees Union, G.R. No. 192601, 26 June 2013 MMPSEU vs. Mitsubishi Motors Phils Corp., G.R. No. 175773, 17 June

    2013

    NUWHRAIN - Philippine Plaza Chapter Vs. Philippines Plaza Inc., G.R.

    No. 177524, 23 July 2014

    • c. Signing and Ratification ALU vs. Ferrer-Calleja, 173 SCRA 178

    • d. Effect

      • 1. With respect to Successor-Employer E. Razon vs. Secretary of Labor, 222 SCRA 1 Metrobank Union vs. NLRC, 226 SCRA 268

      • 2. With respect to a change in exclusive bargaining agent - Substitutionary Doctrine Benguet Consolidated vs. BCI EEs Union, 23 SCRA 465.

    • e. Procedure in registration of CBA

    • f. Scope of the agreement; Who may avail of benefits - San Miguel Brewery New Pacific Timber vs. NLRC, 328 SCRA 404 [2000]

    • g. Duration of the CBA

      • 1. Economic provisions of the CBA: 3 years GMC-ILU vs. General Milling Corporation/General Milling Corporation vs. GMC-ILU, et al., G.R. Nos. 183122/183889, 15 June 2011.

      • 2. Representation question: 5 years FVC LU-PTGWO vs .SANAMA-FVC-SIGLO, GR 176249, 27 Nov 2009.

      • 3. Retroactivity Union of Filipro Employees vs. NLRC, 23 SCRA 465 Manila Electric Company vs. Quisumbing, 302 SCRA 173 (1999) Manila Electric Company vs. Quisumbing, 326 SCRA 172 [2000]

    IX.

    Unfair Labor Practices

    • a. Concept

    • b. Test to determine ULP Insular Life Assurance Co. Ltd., Employees Association-NATU vs. Insular Life Assurance Co., Ltd., 37 SCRA 244 [1971] De Leon vs. NLRC, 358 SCRA 274 [2001]

    • c. Unfair Labor Practices of Employers

      • 1. Interference in the right to self-organization Hacienda Fatima vs. National Federation of Sugarcane Workers-Food and General Trade, G.R. No. 149440, 28 January 2003 Prince Transport, Inc. vs. Garcia, et al. G.R. No. 167291, 12 January
        2011 T & H Shopfitters Corporation/ Gin Queen Corporation et. al. vs. T & H Shopfitters Corporation/Gin Queen Workers Union, et. al., G.R. No. 191714, 26 February 2014, J. Mendoza.

      • 2. Refusal to Bargain Collectively Divine World vs. Secretary of Labor, 213 SCRA 759 [1992]

      • 3. Gross violation of the CBA Employees Union of Bayer Phils.vs. Bayer Philippines, GR No. 162943, 06 Dec 2010. Tabangao Shell Refinery Employees Association vs. Pilipinas Shell Petroleum Corporation, G.R. No. 170007, 07 April 2014.

  • d. Unfair Labor Practices of Labor Organizations

    • 1. Interference in the Employee’s Right to Self-organization, or Discrimination Salunga vs. Court of Industrial Relations, 21 SCRA 216 (1967) Manila Mandarin Employees Union vs. NLRC, 154 SCRA 368 (1987)

  • e. When not ULP General Santos Coca-cola Plant Free Workers Union-TUPAS vs. Coca Cola Botters et al., GR 178647, 13 February 2009 Manila Mining Corp. Employees Association, et al. vs

  • ..

    Manila Mining corp, et

    al., G.R. Nos. 178222-23, 29 September 2010

    • X. Strikes, Picketing, and Lock-outs Dept. Order No. 9 [1997], Rule XXII, Secs. 1-14 Department Order No. 40, [17 February 2003]

      • a. Constitutional Basis and Definition Gold City Integrated Port Services vs. NLRC, 245 SCRA 627 [1995] Lapanday Workers Union vs. NLRC, 248 SCRA 95 [1995] Great Pacific Life Employees Union vs. Grepalife, 303 SCRA 113 [1999]

    Association of Independent Unions in the Phils. Vs. NLRC, 305 SCRA 21 (1999)

    Alex Q. Naranjo, et al. vs. Biomedica Health Care, Inc., et al. G.R. No. 193789,

    19 September 2012

    • b. Who may declare a strike or lock-out; when it may be declared

    • c. Requisites for valid strike or lock-out: First City Interlink vs. Roldan-Confesor, 272 SCRA 124 [1997] Pilipino Telephone Corp vs. Pilipino Telephone Ees Assn. (PILTEA), 525 SCRA 361 [2007] Toyota Motor Phils. Workers Association.(TMPCWA) vs. NLRC, 537 SCRA 171 [2007]

      • 1. Lawful purpose

    i.

    Economic strike/lock-out; Deadlock defined

    Capitol Medical Center Alliance vs. Laguesma, supra., 267 SCRA

    • 503 [1997]

    ii.

    ULP strike/lock-out

    Rural Bank of Alaminos Employees Union vs. NLRC, 317 SCRA

    • 669 (1999)

    BiflexPhils. Labor Union (NAFLU) vs. FilflexInd’l and Mfg., 511

    SCRA 247 [2007]

    Manila Diamond Hotel vs. Manila Diamond Hotel Employees

    Union, G.R. No. 158075, 30 June 2006

    Abaria vs. NLRC, G.R. No. 154113. 07 December 2011.

    MalayangManggagawangStayfast, Inc. vs. NLRC, G.R. No.

    155306, 28 August 2013

    Park Hotel, et al. vs. Manolo Soriano, et al. G.R. No.171118. 10

    September 2012

    • 2. Lawful means

    i.

    Guidelines on Removal of Illegal Blockades at Factory Gates,

    DOLE Memorandum dated 22 October 1987

    ii.

    Guidelines for the Conduct of INP/AFP Personnel during

    Strikes, Lock-outs and Labor Disputes in General, ffective 22

    October 1987

    Dept. Order No. 9, Rule 22, Secs. 10-13

    Phil. Marine Officers Guild vs. Compania Maritima, 22 SCRA 113

    United Seamens Union of the Philippines vs. Davao Shipowners

    Asso., 20 SCRA 1226

    Almira vs. B.F. Goodrich, 58 SCRA 1290

    Ilaw at BuklodManggagawa vs. NLRC, 198 SCRA 586

    MalayangSamahanngmgaManggagawasa M Greenfield vs.

    iii.

    Ramos, 326 SCRA 428 [2000]

    Liability of Union officers and members in illegal strikes

    Allied Banking Corp. vs. NLRC, 258 SCRA 724 [1996]

    C. Alcantara& Sons, Inc. vs. Court of Appeals / NAMAAL-SPFL), et

    al. vs. C. Alcantara & Sons, Inc., et al. / NAMAAL-SPFL, et al. vs. C.

    Alcantara& Sons, Inc., et al., G.R. No. 155109/G.R. No.

    155135/G.R. No. 179220, 29 September 2010.

    Club Filipino, Inc., et al. vs. Benjamin Bautista, et al., G.R. No.

    168406, 14 January 2015

    • 3. Compliance with Procedural Requirements

    i.

    Strike Vote/Lock-out Vote

    ii.

    Notice of Strike/Lock-out

    San Miguel Corporation vs. NLRC, 304 SCRA 1 [1999]

    Filipino Pipe and Foundry Corp. vs. NLRC, 318 SCRA 68 [1999]

    iii.

    Cooling-off period

    Economic strike: 30 days

    ULP strike: 15 days

    Exceptions

    iv.

    Seven-day Strike Ban

    National Fedn.of Sugar Workers vs. Ovejera, 114 SCRA 354

    First City Interlink vs. Roldan-Confesor, 272 SCRA 124 [1997]

    v.

    Conciliation proceedings (Dept. Order 9, R22, S6)

    GTE Directories vs. Sanchez, 197 SCRA 452

    San Miguel Corp vs. NLRC, 403 SCRA 418 [10 June 2003]

    vi.

    Improved Offer Balloting

    • 4. Good faith strike People’s Indl. &Comml. (FFW) vs. PICC, 15 March 1982 Phil. Metal Foundries vs. CIR, 90 SCRA 135 Grand Boulevard Hotel vs. Genuine Labor Organizations of Workers in Hotel Restaurant and Allied Industries, G.R. No. 1534664, 18 July 2003

    • 5. Liability of company who fails to immediately reinstate the union member for participating in an illegal strike; extent of backwages. C. Alcantara and Sons vs Court of Appeals and NagkahiusangMamumuo SaAlsons-SPFL, G.R. No. 155109, 14 March 2012

    • d. Effect of a no strike/no lock-out clause in CBA Phil. Metal Foundries vs. CIR, 90 SCRA 135 Master Iron Labor Union vs. NLRC, 17 Feb. 1993

    • e. Assumption of Jurisdiction by Secretary of Labor or Certification of the labor dispute to the NLRC for Compulsory Arbitration Saulog Transit vs. Lazaro, 128 SCRA 591

    Telefunken Semi-conductors Ees Union-FFW vs. CA, 348 SCRA 565 [2000]

    • 1. Discretion of the Secretary FEATI University vs. Bautista, 18 SCRA 1191

    Extent of discretion:

    e termination aspect of a labor dispute University of Immaculate Concepcion, Inc. vs. Secretary of Labor,

    e termination aspect of a labor dispute

    University of Immaculate Concepcion, Inc. vs. Secretary of Labor, et al., G.R.

    No. 151379, 14 Jan. 2009

    e termination aspect of a labor dispute University of Immaculate Concepcion, Inc. vs. Secretary of Labor,

    ed

    Cirtek Employees Labor Union FFW vs. Cirtek Electronics, GR 190515, 15

    November 2010.

    e termination aspect of a labor dispute University of Immaculate Concepcion, Inc. vs. Secretary of Labor,

    tatements as basis for decision regarding wage

    increases

    Asia Brewery vs. TunaynaPagkakaisang Manggagawasa Asia, G.R. 171594-96,

    18 September 2013

    • 2. Nature and Effect of Assumption and Certification Orders

    Intl. Pharma. vs. Sec. of Labor, 205 SCRA 59

    e termination aspect of a labor dispute University of Immaculate Concepcion, Inc. vs. Secretary of Labor,

    ual reinstatement during strike proceedings

    Manila Diamond Hotel Employees’ Union vs. Court of Appeals, et al.,

    G.R. No. 140518, 12/16/2004

    • 3. Effect of Defiance of Return-to-Work Orders

    St. Scholastica’s College vs. Hon. Ruben Torres, 210 SCRA 565

    Allied Banking Corp. vs. NLRC, supra. 258 SCRA 724 [1996]

    Solidbank vs. Gamier et al, GR 159460, 15 Nov 2010; Solidbank vs.

    Solidbank Union et al., GR 159461, 15 Nov 2010

    • f. Picketing and other forms of Concerted Activities

      • 1. Nature of picketing

    MSF Tire and Rubber vs. Court of Appeals, 311 SCRA 784 [1999]

    Sta. Rosa Coca-Cola Plant EEs Union vs. Coca-Cola Bottlers Phils. Inc.,

    512 SCRA 437 [2007]

    • 2. Limitations:

      • i. Moving picket

    ii.

    Must not affect neutral parties

    Liwayway Publications vs. Permanent Concrete Workers Union, 23 Oct.

    1981

    iii.

    Private homes not allowed

    iv.

    Without violence and intimidation

    • 3. Other forms of concerted activities