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LAW 114

LABOR
RELATIONS
MIDTERMS
BRIES, CABALLA, PROVISIONS + CASE SUMMARIES +
NOTES FROM THE LECTURES,
LOPEZ, C., PUA, THE AZUCENA COMMENTARY,
& VILLARAMA AND THE C2015 REVIEWER
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I. INTRODUCTION . but the Secretary of Labor issued order for the UIC to readmit
the employees in the same terms and conditions prevailing in
A. Definitions/ Classification the employment before the strike. When arbitrators ruled that
12 employees were to be excluded, they gave the employees a
1. Labor Law - statutes, regulations, and jurisprudence choice: either to remain as confidential employees, or as
governing the relations between capital and labor by providing members of the Union. The employees asserted that they can
for certain employment standards and a legal framework for remain as both. UIC terminated their employments.
negotiating, adjusting, and administering those standards
H: UIC is not allowed to terminate these employments.
2. Labor Standards - the least terms and conditions of Exercise of management prerogatives is recognized, but
employment that employers must comply with and to which subject to exceptions, as when the Secretary of Labor
employees are entitled as a matter of legal right assumes jurisdiction over labor disputes involving industries
indispensable to the national interest (Art 263 (g), Labor Code).
3. Labor Relations - status, rights, and duties, and the
international mechanisms that govern the collective and E. Balancing of Interests - Art. XIII, Sec. 3, par. 4, supra
individual and collective interactions, of employers, employees,
or their representatives The State recognizes 2 competing rights that must be
balanced (Art.XIII, Sec.3):
4. Welfare/ Social Legislation - those laws that provide 1. Right to labor to its just share in the fruits of
particular kinds of protection or benefits to society or production
segments thereof in furtherance of social justice 2. Right to enterprises to reasonable returns on
investments, expansion, and growth
B. Justification/ Basis/ Ultimate Goal: Labor Legislation
II. STATE POLICY: LABOR RELATIONS .
Justification: Social Justice
Calalang v. Williams - neither communism, nor despotism, nor A. Voluntary/Democratic Method of Dispute Settlement
atomism nor anarchy, but the humanization of laws and the
equalization of social and economic forces by the State so that The State shall promote:
justice in its rational and objectively secular conception may at • Principle of shared responsibility between ERs and EEs
least be approximated. • Use of voluntary modes in settling disputes
Basis: Police Power • Primacy of free collective bargaining and negotiation
It shall enforce mutual compliance on the part of the worker
C. 7 Cardinal Rights of Workers (ON STH WaP) and employer to foster industrial peace.
1. Self-Organization
1987 Const. Art XIII, Sec.3, par. 3, supra
2. Collective bargaining and Negotiation
3. Peaceful concerted activities incl. the right to Strike
LC, Art. 217. A. It is the policy of the State: (a) To promote and
4. Security of Tenure
emphasize the primacy of free collective bargaining and
5. Humane conditions of work
negotiations, including voluntary arbitration, mediation and
6. Living Wage
conciliation, as modes of settling labor or industrial disputes;
7. Participate in policy and decision-making processes
affecting their rights and benefits
LC, Art. 217. Declaration of Policy. B. To encourage a truly
democratic method of regulating the relations between the
D. Management Prerogative
employers and employees by means of agreements freely
entered into through collective bargaining, no court or
1987 Const. Art. XIII, Sec. 3, pars. 3 and 4 administrative agency or official shall have the power to set or
fix wages, rates of pay, hours of work or other terms and
The State shall promote the principle of shared responsibility conditions of employment, except as otherwise provided under
between workers and employers and the preferential use of this Code
voluntary modes in settling disputes, including conciliation,
and shall enforce their mutual compliance therewith to foster LC, Art. 3. Declaration of basic policy - The State shall afford
industrial peace. protection to labor, promote full employment, ensure equal
work opportunities regardless of sex, race or creed and
The State shall regulate the relations between workers and regulate the relations between workers and employers. The
employers, recognizing the right of labor to its just share in the State shall assure the rights of workers to self- organization,
fruits of production and the right of enterprises to reasonable collective bargaining, security of tenure, and just and humane
returns to investments, and to expansion and growth. conditions of work.

UNIVERSITY OF IMMACULATE CONCEPTION INC. ESTATE OF NELSON DULAY v. ABOITIZ JEBSEN MARITIME
v. SEC. OF LABOR (2005) (2012)
D: Exercise of management prerogatives is recognized, subject D: It is only in the absence of a CBA that parties may opt to
to exceptions. submit the dispute to either the NLRC or to voluntary
arbitration. The policy of the state is to promote voluntary
F: UIC and Union submitted for voluntary arbitration the issue arbitration as a mode of settling labor disputes.
of whether or not to include certain employees in the collective
bargaining unit. Pending resolution, the Union went on strike,
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F: A seaman died after the completion of his contract. His litigious proceeding and, as far as practicable, shall be free
widow claimed for death benefits through the grievance from technicalities of law and procedure, provided only that in
procedure stated in the CBA. Company claimed that RA 8042 every case, the exclusive bargaining agent enjoys the majority
vested jurisdiction in the NLRC/LA, not the VA. support of all the employees in the bargaining unit.

H: Although RA 8042 is a special law governing OFWs, it has C. Worker Enlightenment


no specific provision on disputes involving interpretation of a
CBA. On the other hand, Arts. 217(c) and 261 of the LC are very The State shall promote the enlightenment of workers
specific in stating that VAs have jurisdiction. While the special concerning their rights and obligations as union members and
statute refers to a subject in general, the general statute treats employees.
in particular. In any case, based on the provisions of the CBA, it
is clear that the parties really intended to bring to conciliation/ Duty of labor organizations and officers to inform members of:
voluntary arbitration disputes in the interpretation of the CBA. • Union's constitution and by-laws (CBL)
• CBA
B. Trade Unionism • Prevailing labor relations system
• Rights and obligations under existing laws
Def. Trade union activities - Labor Code, Art. 276. a. Par. 2
"Trade union activities" shall mean: (ON C REA) Unions are authorized to collect contributions for labor
1. Organization, formation and administration of labor education and research, benefits, welfare fund, etc.
organization;
2. Negotiation and administration of collective LC, Art. 217. A. It is the policy of the State: (d) To promote the
bargaining agreements; enlightenment of workers concerning their rights and
3. all forms of Concerted union action; obligations as union members and as employees;
4. organizing, managing, or assisting union conventions,
meetings, Rallies, referenda, teach-ins, seminars, LC, Art. 247. (p) It shall be the duty of any labor organization
conferences and institutes; and its officers to inform its members on the provisions of its
5. any form of participation or involvement in constitution and by-laws, collective bargaining agreement, the
representation proceedings, representation elections, prevailing labor relations system and all their rights and
consent elections, union Elections; and obligations under existing labor laws.
6. other activities or actions Analogous to the foregoing.
LC, Art. 283. (a) All unions are authorized to collect reasonable
The State shall: membership fees, union dues, assessments and fines and
• Promote free trade unionism as an instrument for other contributions for labor education and research, mutual
enhancement of democracy and the promotion of social death and hospitalization benefits, welfare fund, strike fund
justice and development and credit and cooperative undertakings.
• Foster the free and voluntary organization of a strong
and united labor movement D. Adequate Machinery for Expeditious Dispute Settlement
• Promote free trade unionism through expeditious
procedures governing the choice of an exclusive The State shall provide an adequate administrative machinery
bargaining agent for the expeditious settlement of labor or industrial disputes.
Determining the exclusive bargaining agent shall be:
• A non-litigious process 1. NLRC - National Labor Relations Commission; LAs
• Free from technicalities of law and procedure 2. BLR - Bureau of Labor Relations
• By support of majority of all employees 3. NCMB - National Conciliation and Mediation Board
4. TVAAC - Tripartite Voluntary Arbitration Advisory
1987 Const., Art. III. Sec. 8. The right of the people, including Council
those employed in the public and private sectors, to form 5. AIDA - Administrative Intervention for Dispute
unions, associations, or societies for purposes not contrary to Avoidance
law shall not be abridged.
1987 Const., Art. III. Sec. 16: All persons shall have the right to
LC, Art. 217. A. It is the policy of the State: a speedy disposition of their cases before all judicial, quasi-
(b) To promote free trade unionism as an instrument for the judicial, or administrative bodies.
enhancement of democracy and the promotion of social
justice and development; Labor Code, Art. 217. A. It is the policy of the State:
(c) To foster the free and voluntary organization of a strong (e) To provide an adequate administrative machinery for the
and united labor movement; expeditious settlement of labor or industrial disputes;

LC, Art. 218. (g) "Labor organization" means any union or Labor Code, Art. 218. (a) (b) (c) (d) Definitions.
association of employees which exists in whole or in part for (a) "Commission" means the National Labor Relations
the purpose of collective bargaining or of dealing with Commission or any of its divisions, as the case may be, as
employers concerning terms and conditions of employment. provided under this Code.
(b) "Bureau" means the Bureau of Labor Relations and/or the
Book V, Rule VI, Sec. 1. Policy — It is the policy of the State to Labor Relations Divisions in the regional offices
promote free trade unionism through expeditious procedures established under Presidential Decree No. 1, in the
governing the choice of an exclusive bargaining agent. The Department of Labor.
determination of such exclusive bargaining agent is a non- (c) "Board" means the National Conciliation and Mediation
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Board established under Executive Order No. 126. first, second and third divisions shall handle cases coming
(d) "Council" means the Tripartite Voluntary Arbitration from the National Capital Region and the parts of Luzon; and
Advisory Council established under Executive Order No. the fourth and fifth divisions, cases from the Visayas and
126, as amended. Mindanao, respectively; Provided that the Commission sitting
en banc may, on temporary or emergency basis, allow cases
1. National Labor Relations Commission; Labor Arbiters within the jurisdiction of any division to be heard and decided
by any other division whose docket allows the additional
LAs and NLRC have original and exclusive jurisdiction over: workload and such transfer will not expose litigants to
1. ULP cases unnecessary additional expense. The divisions of the
2. Termination disputes Commission shall have exclusive appellate jurisdiction over
3. With claim for reinstatement, claims involving terms cases within their respective territorial jurisdictions..
and conditions of employment
4. Claims for damages arising from ER-EE relations The concurrence of two (2) Commissioners of a division shall
5. Cases arising from violation of Art. 264 (now 270) be necessary for the pronouncement of judgment or
6. All other claims arising from ER-EE relations resolution. Whenever the required membership in a division is
exceeding P5,000, regardless of claim for not complete and the concurrence of two (2) commissioners
reinstatement, EXCEPT claims for: to arrive at a judgment or resolution cannot be obtained, the
a. Employees Compensation Chairman shall designate such number of additional
b. Social Security Commissioners from the other divisions as may be necessary.
c. Medicare (should now be PhilHealth)
d. Maternity Benefits The conclusions of a division on any case submitted to it for
PLUS: decision shall be reached in consultation before the case is
7. Money claims arising from ER-EE relationship or by assigned to a member for the writing of the opinion. It shall be
virtue of any law/contract, involving Filipino workers mandatory for the division to meet for purposes of the
for overseas deployment consultation ordained herein. A certification to this effect
8. Wage distortion disputes in unorganized signed by the Presiding Commissioner of the division shall be
establishments not voluntarily settled issued and a copy thereof attached to the record of the case
9. Enforcement of compromise agreements when there and served upon the parties.
is non-compliance by any of the parties
10. Other cases as may be provided by law The Chairman shall be the Presiding Commissioner of the first
division and the four (4) other members from the public sector
A case under Art. 223 may also be lodged with a voluntary shall be the Presiding Commissioners of the second, third,
arbitrator because the law gives primacy to voluntary fourth and fifth divisions, respectively. In case of the effective
arbitration instead of compulsory arbitration. absence or incapacity of the Chairman, the Presiding
Commissioner of the second division shall be the Acting
LC, Art. 218. (a) "Commission" means the National Labor Chairman.
Relations Commission or any of its divisions, as the case may
be, as provided under this Code. The Chairman, aided by the Executive Clerk of the Commission,
shall have administrative supervision over the Commission
LC, Art. 219. National Labor Relations Commission. There and its regional branches and all its personnel, including the
shall be a National Labor Relations Commission which shall be Executive Labor Arbiters and Labor Arbiters.
attached to the Department of Labor and Employment for
program and policy coordination only, composed of a The Commission, when sitting en banc shall be assisted by the
Chairman and fourteen (14) Members. same Executive Clerk and, when acting thru its Divisions, by
said Executive Clerks for the second, third, fourth and fifth
Five (5) members each shall be chosen from among the Divisions, respectively, in the performance of such similar or
nominees of the workers and employers organizations, equivalent functions and duties as are discharged by the Clerk
respectively. The Chairman and the four (4) remaining of Court and Deputy Clerks of Court of the Court of Appeals.
members shall come from the public sector, with the latter to
be chosen from among the recommendees of the Secretary of LC, Art. 223. Jurisdiction of the Labor Arbiters and the
Labor and Employment. Commission. a. Except as otherwise provided under this Code,
the Labor Arbiters shall have original and exclusive jurisdiction
Upon assumption into office, the members nominated by the to hear and decide, within thirty (30) calendar days after the
workers and employers organizations shall divest themselves submission of the case by the parties for decision without
of any affiliation with or interest in the federation or extension, even in the absence of stenographic notes, the
association to which they belong. following cases involving all workers, whether agricultural or
non-agricultural:
The Commission may sit en banc or in five (5) divisions, each 1) Unfair labor practice cases;
composed of three (3) members. Subject to the penultimate 2) Termination disputes;
sentence of this paragraph, the Commission shall sit en banc 3) If accompanied with a claim for reinstatement, those
only for purposes of promulgating rules and regulations cases that workers may file involving wages, rates of pay,
governing the hearing and disposition of cases before any of hours of work and other terms and conditions of
its divisions and regional branches, and formulating policies employment;
affecting its administration and operations. The Commission 4) Claims for actual, moral, exemplary and other forms of
shall exercise its adjudicatory and all other powers, functions, damages arising from the employer-employee relations;
and duties through its divisions. Of the five (5) divisions, the 5) Cases arising from any violation of Article 264 of this
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Code, including questions involving the legality of strikes grievance procedure and/or voluntary arbitration.
and lockouts; and The Bureau shall have fifteen (15) working days to act on labor
6) Except claims for Employees Compensation, Social cases before it, subject to extension by agreement of the
Security, Medicare and maternity benefits, all other claims parties.
arising from employer-employee relations, including those
of persons in domestic or household service, involving an 4. Tripartite Voluntary Arbitration Advisory Council (TVAAC)
amount exceeding five thousand pesos (P5,000.00)
regardless of whether accompanied with a claim for Voluntary Arbitrators (VAs) have original and exclusive
reinstatement. jurisdiction over:
1. All unresolved grievances arising from the
b. The Commission shall have exclusive appellate jurisdiction interpretation or implementation of the CBA
over all cases decided by Labor Arbiters. 2. Grievances arising from the interpretation or
enforcement of company personnel policies not
c. Cases arising from the interpretation or implementation of settled within 7 days from submission to the CBA's
collective bargaining agreements and those arising from the grievance machinery
interpretation or enforcement of company personnel policies CBA violations that are NOT gross in character shall no longer
shall be disposed of by the Labor Arbiter by referring the same be treated as ULP but as grievances.
to the grievance machinery and voluntary arbitration as may Gross violations: flagrant and/or malicious refusal to
be provided in said agreements. comply with the economic provisions

Upon agreement of the parties, VAs may also hear and decide
2. National Conciliation and Mediation Board (NCMB) all other labor disputes including unfair labor practices and
bargaining deadlocks.
LC, Art. 212. (c) "Board" means the National Conciliation and
Mediation Board established under Executive Order No. 126. LC, Art. 218. (a), supra p. 3

LC, Art. 256. Procedure in collective bargaining - The following LC, Art. 266. Grievance machinery and voluntary arbitration.
procedures shall be observed in collective bargaining: The parties to a Collective Bargaining Agreement shall include
(c) If the dispute is not settled, the Board shall intervene upon therein provisions that will ensure the mutual observance of its
request of either or both parties or at its own initiative and terms and conditions. They shall establish a machinery for the
immediately call the parties to conciliation meetings. The adjustment and resolution of grievances arising from the
Board shall have the power to issue subpoenas requiring interpretation or implementation of their Collective Bargaining
the attendance of the parties to such meetings. It shall be Agreement and those arising from the interpretation or
the duty of the parties to participate fully and promptly in enforcement of company personnel policies.
the conciliation meetings the Board may call;
(d) During the conciliation proceedings in the Board, the All grievances submitted to the grievance machinery which are
parties are prohibited from doing any act which may not settled within seven (7) calendar days from the date of its
disrupt or impede the early settlement of the disputes; and submission shall automatically be referred to voluntary
(e) The Board shall exert all efforts to settle disputes arbitration prescribed in the Collective Bargaining Agreement.
amicably and encourage the parties to submit their case For this purpose, parties to a Collective Bargaining Agreement
to a voluntary arbitrator. shall name and designate in advance a Voluntary Arbitrator or
panel of Voluntary Arbitrators, or include in the agreement a
3. BLR; Labor Relations Division procedure for the selection of such Voluntary Arbitrator or
panel of Voluntary Arbitrators, preferably from the listing of
The BLR has original and exclusive authority to act on: qualified Voluntary Arbitrators duly accredited by the Board. In
1. all inter-union and intra-union conflicts case the parties fail to select a Voluntary Arbitrator or panel of
2. all disputes, grievances or problems arising from or Voluntary Arbitrators, the Board shall designate the Voluntary
affecting labor-management relations in all Arbitrator or panel of Voluntary Arbitrators, as may be
workplaces necessary, pursuant to the selection procedure agreed upon in
EXCEPT those arising from CBA interpretation/implementation the Collective Bargaining Agreement, which shall act with the
same force and effect as if the Arbitrator or panel of
LC, Art. 218. (b) "Bureau" means the Bureau of Labor Relations Arbitrators has been selected by the parties as described
and/or the Labor Relations Divisions in the regional offices above.
established under Presidential Decree No. 1, in the Department
of Labor. LC, Art. 267. Jurisdiction of Voluntary Arbitrators or panel of
Voluntary Arbitrators. The Voluntary Arbitrator or panel of
LC, Art. 232. The Bureau of Labor Relations. The Bureau of Voluntary Arbitrators shall have original and exclusive
Labor Relations and the Labor Relations Divisions in the jurisdiction to hear and decide all unresolved grievances
regional offices of the Department of Labor, shall have original arising from the interpretation or implementation of the
and exclusive authority to act, at their own initiative or upon Collective Bargaining Agreement and those arising from the
request of either or both parties, on all inter-union and intra- interpretation or enforcement of company personnel policies
union conflicts, and all disputes, grievances or problems referred to in the immediately preceding article. Accordingly,
arising from or affecting labor-management relations in all violations of a Collective Bargaining Agreement, except those
workplaces, whether agricultural or non- agricultural, except which are gross in character, shall no longer be treated as
those arising from the implementation or interpretation of unfair labor practice and shall be resolved as grievances under
collective bargaining agreements which shall be the subject of the Collective Bargaining Agreement. For purposes of this
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article, gross violations of Collective Bargaining Agreement (b) the name of the certified bargaining agent, or the
shall mean flagrant and/or malicious refusal to comply with employee representative duly designated in writing by a
the economic provisions of such agreement. majority of the employees where there is no collective
bargaining agent;
The Commission, its Regional Offices and the Regional (c) the number of employees affected by the potential or
Directors of the Department of Labor and Employment shall ongoing dispute; and
not entertain disputes, grievances or matters under the (d) a brief description of the potential or ongoing dispute.
exclusive and original jurisdiction of the Voluntary Arbitrator or
panel of Voluntary Arbitrators and shall immediately dispose 3. Upon receipt of the REQUEST, the Office of the Secretary
and refer the same to the Grievance Machinery or Voluntary shall forthwith notify the parties and invite them for
Arbitration provided in the Collective Bargaining Agreement. conference.

LC, Art. 268. Jurisdiction over other labor disputes - The The conference for REQUESTS coming from the National
Voluntary Arbitrator or panel of Voluntary Arbitrators, upon Capital Region, Regions III, IV-A or IV-B shall be held at the
agreement of the parties, shall also hear and decide all other Office of the Secretary of Labor and Employment unless the
labor disputes including unfair labor practices and bargaining Secretary otherwise directs. The conference for REQUESTS
deadlocks. coming from the other regions shall be conducted by the
Regional Director for the Secretary.
5. Administrative Intervention for Dispute Avoidance (AIDA)
4. The Office of the Secretary or the Regional director, in the
Summary: The ER/ SEBA/ EEs' representative may bring a proper case, shall proceed to intervene after the parties shall
request for intervention any potential/ongoing dispute which: have manifested that;
a. is a live and active dispute (a) they voluntarily submit their potential or ongoing dispute
b. may lead to strike/lockout/ massive labor unrest to intervention by the Office of the Secretary of Labor and
c. is not the subject of any complaint/ notice of Employment;
strike or lockout at the time of the request (b) there is no pending notice of strike or lockout or any
The secretary/ regional director shall intervene after the related complaint in relation with their potential or
parties manifest that they voluntarily submit the dispute, shall ongoing dispute;
refrain from any strike/ lockout/ stoppage/ complaint, and (c) they shall refrain from any strike or lockout or any form of
shall abide by the agreement reached. If the intervention fails, work stoppage or from filing any related complaint while
the parties may avail of the other remedies in the Labor Code. the Secretary's intervention is in effect; and
(d) they shall abide by the agreement reached, whose terms
AIDA - DOLE Circular No. 1, s. 2006 may be enforced through the appropriate writs issued by
In line with the objectives of the Republic Act No. 9285, the Secretary of Labor and Employment.
Executive Order No. 523 dated 07 April 2006, and the mandate
of the Department of Labor and Employment to promote All agreements settling the dispute shall be in writing and
industrial peace, this administrative procedure for the signed by the parties as well as the official who mediated the
voluntary settlement of labor disputes is hereby established. dispute.

1. Either or both the employer and the certified collective 5. The parties and officials or employees of the Department of
bargaining agent (or the representative of the employees Labor and Employment who took part in the intervention
where there is no certified bargaining agent) may voluntarily proceedings shall not testify in any court or body regarding the
bring to the Office of the Secretary of Labor and Employment, disclosures, submissions or positions made by the parties in
through a REQUEST FOR INTERVENTION, any potential or these proceedings.
ongoing dispute defined below.
6. If the intervention fails, either or both parties may avail
A potential or ongoing dispute refers to: themselves of the remedies provided under the Labor Code.
(a) a live and active dispute; Alternatively, the parties may submit their dispute to the Office
(b) that may lead to a strike or lockout or to massive labor of the Secretary for voluntary arbitration.
unrest; and
(c) is not the subject of any complaint or notice of strike or Such voluntary arbitration shall be limited to the issues
lockout at the time a REQUEST FOR INTERVENTION is defined in the parties' submission to voluntary arbitration
made. agreement and shall be decided on the basis of the parties'
position papers and submitted evidence.
This recourse is separate from the established dispute
resolution modes of mediation, conciliation and arbitration The Office of the Secretary shall resolve the dispute within
under the Labor Code, and is an alternative to other voluntary sixty (60) days from the parties' submission of the dispute for
modes of dispute resolution such as the voluntary submission resolution.
of a dispute to the Regional Director for mediation, to the
National Conciliation and Mediation Board (NCMB) for E. Industrial Peace
preventive mediation, or to the intervention of a regional or The State shall:
local tripartite peace council for the same purpose. • Ensure a stable but dynamic and just industrial peace
• Promote the principle of shared responsibility between
2. All REQUESTS shall be in writing and filed with the Office of workers and employees
the Secretary. A REQUEST shall state: • Promote the use of voluntary modes of settling disputes
(a) the name and address of the employer;
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DOLE shall help promote and gradually develop labor- III. RIGHT TO SELF-ORGANIZATION .
management cooperation programs based on shared
responsibility and mutual respect. A. Basis of Right to Self-Organization

LC, Art. 217.A. It is the policy of the State: (f) To ensure a 1. ILO Conventions
stable but dynamic and just industrial peace
ILO Convention No. 87 (Freedom of Association & Protection
LC, Art. 283. (g) The Ministry shall help promote and gradually of Right to Organize)
develop, with the agreement of labor organizations and Summary: Outlines the rights of both worker and employers to
employers, labor-management cooperation programs at “join organisations of their own choosing without previous
appropriate levels of the enterprise based on the shared authorisation.”
responsibility and mutual respect in order to ensure industrial • Rights are also extended to the organizations to draw
peace and improvement in productivity, working conditions up rules and constitutions, vote for officers, and
and the quality of working life. organize administrative functions without interference
from public authorities.
1987 Const., Art. XIII. Sec. 3 par. 3: The State shall promote
• Organizations are required, in the exercise of these
the principle of shared responsibility between workers and
rights, to respect the law of the land. In turn, the law of
employers and the preferential use of voluntary modes in
the land, “shall not be such as to impair, nor shall it be
settling disputes, including conciliation, and shall enforce their so applied as to impair, the guarantees provided for in
mutual compliance therewith to foster industrial peace. this Convention.”
• These provisions are applied to both armed forces and
F. Worker Participation in Decision and Policy Making
police forces only as determined by national laws and
Processes Affecting Rights, Duties and Welfare
regulations, and do not supersede previous national
laws that reflect the same rights for such forces.
The State shall ensure participation of workers in decision and
• All ILO members must give effect to the following
policy-making processes affecting their rights, duties and
provisions.
welfare.
ILO Convention No. 98 (Application of the Principles of the
Workers shall have the right to participate in policy and
Right to Organize and Bargain Collectively
decision-making processes of the establishment where they
Summary: Workers must be protected against discrimination
are employed insofar as they will directly affect their rights,
for joining a union, particularly conditions of employers to not
benefits, and welfare.
join a union, dismissal or any other prejudice for having union
membership or engaging in union activities.
Workers and employers may form labor-management
• Both workers and employers' organizations should not
councils. Representatives shall be elected by majority of all
be interfered in their own establishment, functioning or
employees.
administration. Employers are prohibited from
dominating unions through "financial or other means".
LC, Art.217. A. It is the policy of the State: (g) To ensure the
participation of workers in decision and policy-making • Each ILO member must give effect to these provisions
processes affecting their rights, duties and welfare. through appropriate machinery, such as a government
watchdog. It requires that the law promotes "the full
LC, Art. 261. Par. 2. Exclusive bargaining representation and development and utilisation of machinery for voluntary
workers’ participation in policy and decision-making - Any negotiation" between worker organisations and
provision of law to the contrary notwithstanding, workers shall employer groups to regulation employment "by means
have the right, subject to such rules and regulations as the of collective agreements.
Secretary of Labor and Employment may promulgate, to • "National law can provide different laws for the police
participate in policy and decision-making processes of the and armed forces, and the Convention does not affect
establishment where they are employed insofar as said laws that existed when an ILO member ratifies the
processes will directly affect their rights, benefits and welfare. Convention. Article 6 gives an exemption for "the
For this purpose, workers and employers may form labor- position of public servants engaged in the
management councils: Provided, That the representatives of administration of the State".
the workers in such labor-management councils shall be
elected by at least the majority of all employees in said 2. US Laws
establishment.
National Labor Relations Act (Wagner Act)
LC, Art. 283. (g) The Ministry shall help promote and gradually Purposes (according to the National Labor Relations Board):
develop, with the agreement of labor organizations and • Protect the rights of employees and employers
employers, labor- management cooperation programs at • Encourage collective bargaining
appropriate levels of the enterprise based on the shared • Curtail certain private sector labor and management
responsibility and mutual respect in order to ensure industrial practices, which can harm the general welfare of workers,
peace and improvement in productivity, working conditions businesses and the U.S. economy.
and the quality of working life. Key principles:
• Encouraging practice & procedure of collective bargaining
1987 Const., Art. XIII. Sec. 3 par. 2, 3rd sentence: They shall • Protecting the exercise by workers of full freedom of
also participate in policy and decision-making processes association, self-organization, and designation of
affecting their rights and benefits as may be provided by law. representatives of their own choosing, for the purpose of
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negotiating the terms and conditions of their employment fruits of production and the right of enterprises to reasonable
or other mutual aid or protection returns to investments, and to expansion and growth.
- Created the National Labor Relations Board, with similar
powers and functions to the NLRC 1987 Const., Art. IX(B), Sec. 2(5). The right to self-
- Listed unfair labor practices committed by employers organization shall not be denied to government employees.

US Labor Management Relations Act of 1947 (Taft-Heartley NUEVA ECIJA ELECTRIC COOP (NEECOI) EMPLOYEES ASSO. v.
Act) NLRC (2000)
- Restricted the activities and power of labor unions D: Unfair labor practices violate the constitutional rights of
- Amended the Wagner Act by adding unfair labor practices workers and employees to self-organization, are inimical to
committed by labor organizations the legitimate interests of both labor and management
(including their right to bargain collectively and otherwise deal
3. Philippine Sources with each other in an atmosphere of freedom and mutual
respect), and disrupt industrial peace and hinder the
a. 1987 Constitution promotion of healthy and stable labor-management relations.
As the conscience of the government, it is the Court’s sworn
The 1935 and 1973 Constitutions did not contain any labor- duty to ensure that none trifles with labor rights.
specific provisions, but they both contained provisions on
freedom of expression/assembly and freedom of association, F: NEECO I’s Policy 3-33 ordered employees to apply for either
rights with which the right to self-organization is connected. retirement, resignation or separation from service. Petitioners
filed a case for illegal dismissal and unfair labor practice,
The 1987 Constitution contains provisions specifically alleging that management singled out union officers, active
pertaining to labor members and past members. The LA awarded them exemplary
• Affirming labor as a primary economic force. (Art. II, or moral damages for this reason, but the NLRC deleted the
Sec. 18). awards after NEECO I’s appeal.
• Freedom of expression and assembly, and freedom of
association (Art. III, Secs. 4, 8). H: The Court affirmed moral damages as proper but reduced
• 7 Cardinal Rights (Art. XIII, Sec. 3) them because of excessiveness.
• Employees of both private and public sectors enjoy the
right to self-organization (Art. IX-B, Sec. 2(5)) b. Labor Code

1987 Const., Art. II, Sec. 18. The State affirms labor as a LC, Art. 249. Coverage and employees’ right to self-
primary social economic force. It shall protect the rights of organization. All persons employed in commercial, industrial
workers and promote their welfare. and agricultural enterprises and in religious, charitable,
medical, or educational institutions, whether operating for
1987 Const., Art. III, Sec. 4. No law shall be passed abridging profit or not, shall have the right to self-organization and to
the freedom of speech, of expression, or of the press, or the form, join, or assist labor organizations of their own choosing
right of the people peaceably to assemble and petition the for purposes of collective bargaining. Ambulant, intermittent
government for redress of grievances. and itinerant workers, self- employed people, rural workers and
those without any definite employers may form labor
1987 Const., Art. III, Sec. 8. The right of the people, including organizations for their mutual aid and protection.
those employed in the public and private sectors, to form
unions, associations, or societies for purposes not contrary to LC, Art. 250. Right of employees in the public service.
law shall not be abridged. Employees of government corporations established under the
Corporation Code shall have the right to organize and to
1987 Const., Art. XIII, Sec. 3. The State shall afford full bargain collectively with their respective employers. All other
protection to labor, local and overseas, organized and employees in the civil service shall have the right to form
unorganized, and promote full employment and equality of associations for purposes not contrary to law.
employment opportunities for all. Relate to: 1987 Constitution, Art. IX-B, Sec. 2(1) The civil
service embraces all branches, subdivisions, instrumentalities,
It shall guarantee the rights of all workers to self-organization, and agencies of the Government, including government-owned
collective bargaining and negotiations, and peaceful concerted or controlled corporations with original charters.
activities, including the right to strike in accordance with law.
They shall be entitled to security of tenure, humane conditions LC, Art. 251. Ineligibility of managerial employees to join any
of work, and a living wage. They shall also participate in policy labor organization; right of supervisory employees. Managerial
and decision-making processes affecting their rights and employees are not eligible to join, assist or form any labor
benefits as may be provided by law. organization. Supervisory employees shall not be eligible for
membership in the collective bargaining unit of the rank-and-
The State shall promote the principle of shared responsibility file employees but may join, assist or form separate collective
between workers and employers and the preferential use of bargaining units and/or legitimate labor organizations of their
voluntary modes in settling disputes, including conciliation, own. The rank and file union and the supervisors' union
and shall enforce their mutual compliance therewith to foster operating within the same establishment may join the same
industrial peace. federation or national union.
Relate to: LC, Art. 218 m. “Managerial employee” is one who is
The State shall regulate the relations between workers and vested with the powers or prerogatives to lay down and
employers, recognizing the right of labor to its just share in the execute management policies and/or to hire, transfer,
UP LAW C2017 LABOR 2 (PROF. DAWAY) MIDTERMS REVIEWER | 8

suspend, lay-off, recall, discharge, assign or discipline B. Extent and Scope of Right
employees. Supervisory employees are those who, in the
interest of the employer, effectively recommend such The right to self-organization encompasses 2 rights:
managerial actions if the exercise of such authority is not 1. Right to form, join, or assist labor organizations for
merely routinary or clerical in nature but requires the use of the purpose of collective bargaining through duly
independent judgment. All employees not falling within any of chosen representatives
the above definitions are considered rank- and-file employees 2. Right to engage in lawful concerted activities for the
for purposes of this Book. same purpose, for mutual aid and protection
What constitutes “abridgement” of this right?
Book V, Rule II - To “restrain, coerce, discriminate against, or unduly interfere”
COVERAGE OF THE RIGHT TO SELF-ORGANIZATION with the exercise of the right

Section 1. Policy. - It is the policy of the State to promote the LC, Art. 252. Non-abridgment of right to self-organization. It
free and responsible exercise of the right to self-organization shall be unlawful for any person to restrain, coerce,
through the establishment of a simplified mechanism for the discriminate against or unduly interfere with employees and
speedy registration of labor unions and workers associations, workers in their exercise of the right to self-organization. Such
determination of representation status and resolution of right shall include the right to form, join, or assist labor
inter/intra-union and other related labor relations disputes. organizations for the purpose of collective bargaining through
Only legitimate or registered labor unions shall have the right representatives of their own choosing and to engage in lawful
to represent their members for collective bargaining and other concerted activities for the same purpose for their mutual aid
purposes. Workers' associations shall have the right to and protection, subject to the provisions of Article 264 of this
represent their members for purposes other than collective Code.
bargaining.
REYES v. TRAJANO (1992)
Section 2. Who may join labor unions and worker's D: The right to self-organization includes the right to organize
associations. - All persons employed in commercial, industrial or affiliate with a labor union, and subsumed in it is the right
an agricultural enterprises, including employees of not to join, affiliate with, or assist, and to disaffiliate and resign
government owned or controlled corporations without original from a labor organization.
charters established under the Corporation Code, as well as
employees of religious, charitable, medical or educational F: The 141 votes of the petitioners who are members of Iglesia
institutions whether operating for profit or not, shall have teh ni Kristo (INK) were excluded since such was agreed upon by
right to self-organization and to form, join or assist labor the competing unions in the pre-election conference. INK
unions for purposes of collective bargaining: provided, which prohibits its followers from joining labor organizations
however, that supervisory employees shall not be eligible for filed a petition to cancel the election.
membership in a labor union of the rank-and-file employees
but may form, join or assist separate labor unions of their own. H: The Court ruled in favor of the INK members. See doctrine.
Managerial employees shall not be eligible to form, join or
assist any labor unions for purposes of collective bargaining.
KAPATIRAN v. CALLEJA (1988)
D: Religious affiliation cannot obstruct the exercise of workers’
Alien employees with valid working permits issued by the
right to self-organization. The recognition of the tenets of the
Department may exercise the right to self-organization and
sect should not infringe on the basic right of self-organization
join or assist labor unions for purposes of collective
granted by the constitution to workers, regardless of religious
bargaining if they are nationals of a country which grants the
affiliation.
same or similar rights to Filipino workers, as certified by the
Department of Foreign Affairs, or which has ratified either ILO
F: TUPAS wanted to pressure Universal Robina into signing a
Convention No. 87 and ILO Convention No. 93.
new CBA with it. When a new contender for bargaining unit,
NEW ULO, was formed, TUPAS filed a petition challenging the
For purposes of this section, any employee, whether employed
order for a certification election, alleging irregularity, since
for a definite period or not, shall beginning on the frist day of
NEW ULO’s INC members, who form the majority, had not been
his/her service, be eligible for membership in any labor
involved in any collective bargaining in the past.
organization.
H: While the court upheld INC members’ right not to join a
All other workers, including ambulant, intermittent and other
labor union for being contrary to their religious beliefs in
workers, the self-employed, rural workers and those without
Victoriano vs. Elizalde Rope Workers’ Union, the same decision
any definite employers may form labor organizations for their
does not bar the said members from forming their own union.
mutual aid and protection and other legitimate purposes
except collective bargaining. (As amended by DO 40-C-05.)
PAN-AM WORLD AIRWAYS, INC. v. PAN-AM EMPLOYEES
c. Pre-Labor Code ASSN. (1969)
D: Right to organize includes the right to choose their own
i. Commonwealth Act No. 103, creating the CIR leaders to speak on their behalf and bargain for them.

ii. Industrial Peace Act (RA 875 of 1953) F: Airline employees union filed a notice of strike. The
President of the Philippines certified the strike as being an
industrial dispute affecting the national interest. The union
members did not want to resume the work unless its officers
UP LAW C2017 LABOR 2 (PROF. DAWAY) MIDTERMS REVIEWER | 9

were likewise included in the return-to-work order. Company General rule: all workers enjoy the right to self-organization,
refused to include the officers, alleging that the strike was regardless of whether they are employed in the private or
illegal, being offensive to a no-strike clause in the CBA. public sector (1987 Const., Art. III, Sec. 8).
NOTE: The right to self-organize and the right to form, join, or
H: Union officials have the right to feel offended by the fact assist labor organizations (Art. 250) are DIFFERENT.
that, while they will be paid their salaries, they would not be • ALL persons may organize for a lawful purpose.
considered as fit persons to perform the duties pertaining to • But NOT all persons may form labor organizations.
the positions held by them. The greater offense is to the labor There are persons whom the law and/or
movement itself, more specifically to the right of self- jurisprudence do not allow to form labor
organization. There is both a constitutional and statutory organizations for purposes of collective bargaining
recognition that laborers have the right to form unions to take (e.g. managerial employees).
care of their interests vis-a-vis their employers. Their freedom • Any employee is eligible for membership in a labor
organizations would be rendered nugatory if they could not organization beginning on the FIRST day of his/her
choose their own leaders to speak on their behalf and to service (Book V, Rule II, Sec. 2).
bargain for them.
1987 Constitution
C. Covered Employees/ Workers
Art III, Section 8. The right of the people, including those
CATEGORY NATURE OF RIGHT BASIS employed in the public and private sectors, to form unions,
Persons employed associations, or societies for purposes not contrary to law
in commercial, shall not be abridged.
industrial, and
agricultural Art XIII, Section 3. The State shall afford full protection to
enterprises labor, local and overseas, organized and unorganized, and
For purposes of collective
Persons employed promote full employment and equality of employment
bargaining
in religious, Art. opportunities for all.
charitable, 249;
medical, or FEU- It shall guarantee the rights of all workers to self-organization,
educational NRMF collective bargaining and negotiations, and peaceful
institutions v. concerted activities, including the right to strike in accordance
Ambulant, Trajano with law. They shall be entitled to security of tenure, humane
intermittent, and conditions of work, and a living wage. They shall also
itinerant workers participate in policy and decision-making processes affecting
For purpose of mutual aid and their rights and benefits as may be provided by law.
Self-employed
protection
Rural workers
Those without any The State shall promote the principle of shared responsibility
definite employers between workers and employers and the preferential use of
Gov't corporate For purpose of collective Art. voluntary modes in settling disputes, including conciliation,
employees bargaining 250; EO and shall enforce their mutual compliance therewith to foster
Other employees 180; industrial peace.
in the civil service Const.
For lawful purposes other The State shall regulate the relations between workers and
(excluding gov't Art. IX-
than collective bargaining employers, recognizing the right of labor to its just share in the
corporate B, Sec.
employees) 2 fruits of production and the right of enterprises to reasonable
returns to investments, and to expansion and growth.
Art.
251;
Book V, Rule II, Sec. 2. Who may join labor unions and
Art.
LIMITED right – CANNOT join worker's associations. - All persons employed in commercial,
218(m);
labor organization of the rank- industrial an agricultural enterprises, including employees of
Book V,
Supervisory and-file employees; CAN join, government owned or controlled corporations without original
Rule I,
assist or form separate labor charters established under the Corporation Code, as well as
Sec. 1
organizations of their own employees of religious, charitable, medical or educational
(xx),
(hh), institutions whether operating for profit or not, shall have teh
(nn) right to self-organization and to form, join or assist labor
unions for purposes of collective bargaining: provided,
For purpose of collective
however, that supervisory employees shall not be eligible for
bargaining, but ONLY if:
membership in a labor union of the rank-and-file employees
- Working in the Philippines
Arts. but may form, join or assist separate labor unions of their
with valid permits issued by
Aliens 275, own. Managerial employees shall not be eligible to form, join
the DOLE
276 or assist any labor unions for purposes of collective
- Nationals of a country which
bargaining.
grants same or similar rights
to Filipino workers
Alien employees with valid working permits issued by the
EO 111;
Department may exercise the right to self-organization and
Security guards Meralco
join or assist labor unions for purposes of collective
v. Sec.
bargaining if they are nationals of a country which grants the
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same or similar rights to Filipino workers, as certified by the branches, subdivisions, instrumentalities, and agencies of the
Department of Foreign Affairs, or which has ratified either ILO Government, including government- owned or controlled
Convention No. 87 and ILO Convention No. 93. corporations with original charters.

For purposes of this section, any employee, whether employed (5) The right to self-organization shall not be denied to
for a definite period or not, shall beginning on the frist day of government employees.
his/her service, be eligible for membership in any labor
organization. Book V, Rule II, Sec. 2, par. 1, supra p. 9

All other workers, including ambulant, intermittent and other EO No. 180 Summary:
workers, the self-employed, rural workers and those without • Applies to gov't EEs but not to members of the Armed
any definite employers may form labor organizations for their Forces, including police officers, policemen, fireman,
mutual aid and protection and other legitimate purposes and jail guards
except collective bargaining. (As amended by DO 40-C-05.) • Grants to covered government employees, like their
counterparts in the private sector, the right to engage
1. Rule in concerted activities. However, these concerted
activities must be in accordance with law, i.e. both
LC, Art 249. Coverage and employees right to self- Civil Service Law and rules and any legislation that
organization. All persons employed in commercial, industrial may be enacted by Congress.
and agricultural enterprises and in religious, charitable, • Created a Public Sector Labor-Management Council
medical, or educational institutions, whether operating for to which parties may jointly refer to settle disputes
profit or not, shall have the right to self-organization and to which remain unresolved after exhausting all
form, join, or assist labor organizations of their own choosing available remedies under existing laws and
for purposes of collective bargaining. Ambulant, intermittent procedures
and itinerant workers, self-employed people, rural workers and • Originally, EO No. 180 granted covered government
those without any definite employers may form labor employees the right to strike. However, this was
organizations for their mutual aid and protection. subsequently prohibited by the Civil Service
Commission’s Memorandum Circular No. 6. So now,
FEU-DR NICANOR REYES MED FOUNDATION INC v. TRAJANO government employees covered by EO No. 180 may
(1987) organize, unionize, and negotiate employment
D: Art. 244 was amended, now granting employees of non- conditions fixed by law, but they cannot strike.
stock, non-profit institutions the right to form, join, and
organize labor unions of their choice 3. Supervisory Employees

F: As early as 1976, respondent AFW had filed a petition for In the interest of the employer, supervisory employees
certification election before the Ministry of Labor. Back then, it effectively recommend managerial actions, and the exercise of
had to be denied by virtue of Art. 244 of the Labor Code, which such authority is not routinary or clerical but requires the use
prohibited EEs of non-stock, non-profit medical institutions of independent judgment (Art. 218(m); Bk. V, Rule I, Sec. 1(xx))
from joining a union. During the pendency of appeal, Art 244
was amended. They are not allowed to join labor organizations of the rank-
and-file employees but may join, assist or form separate labor
H: Incumbent upon Director to conduct a certification election organizations of their own (Art. 251).
to determine their exclusive bargaining representative.
LC, Art. 251. supra p. 7
2. Government Corporate Employees LC, Art 218(m). supra p. 7

GOV'T CORPORATE EMPLOYEES GOV'T EMPLOYEE Book V, Rule I, Sec 1


- EEs of gov't corporations - EEs of all branches,
formed under the Corporation subdivisions, (xx) “Supervisory employee” refers to an emokiyee who, in the
Code and duly registered with instrumentalities, and interest of the employer, effectively recommends managerial
the SEC agencies of the actions and the exercise of such authority is not routinary or
- Governing labor relations law: government, including clerical but requires the use of independent judgment
Labor Code GOCCs with original
charters from Congress (nn) “Rank-and-file employee” refers to an employee whose
- Governing labor relations functions are neither managerial nor supervisory in nature
law: E.O. No. 180
(hh) “Managerial employee” refers to an employee who is
LC, Art. 250. Right of employees in the public service. vested with powers or prerogatives to lay down and execute
Employees of government corporations established under the management policies or to hire, transfer, suspend, layoff,
Corporation Code shall have the right to organize and to recall, discharge, assign or discipline employees.
bargain collectively with their respective employers. All other
employees in the civil service shall have the right to form HOLY CHILD CATHOLIC SCHOOL v. SANTO TOMAS AND
associations for purposes not contrary to law. HCCS TELU PIGLAS (2013)
D: Commingling of supervisory employees and rank-and-file
1987 Constitution employees in one labor organization does not affect the org's
Art IX-B, Section 2. (1) The civil service embraces all legitimacy and its right to file petition for certification election.
UP LAW C2017 LABOR 2 (PROF. DAWAY) MIDTERMS REVIEWER | 11

F: PIGLAS filed a petition for certification election. The to self-organization and join or assist labor organizations of
employer Holy Child opposed this, saying that the union is an their own choosing for purposes of collective bargaining:
illegitimate labor organization because of the a) commingling Provided, further, That said aliens are nationals of a country
of teaching and non-teaching personnel and that b) the union which grants the same or similar rights to Filipino workers.
is comprised of supervisory employees and rank and file
employees. LC, Art. 276. Regulation of foreign assistance. - (a) No foreign
individual, organization or entity may give any donations,
H: Ordered two certification elections to be held—one for the grants or other forms of assistance, in cash or in kind, directly
teaching personnel and another for non-teaching personnel. or indirectly, to any labor organization, group of workers or any
auxiliary thereof, such as cooperatives, credit unions and
TAGAYTAY HIGHLANDS INT’L GOLF CLUB INC v. TAGAYTAY institutions engaged in research, education or communication,
HIGHLANDS EMPLOYEES UNION (2003) in relation to trade union activities, without prior permission by
D: The inclusion in a union of disqualified employees is not the Secretary of Labor.
among the grounds for cancellation, unless such inclusion is "Trade union activities" shall mean:
due to misrepresentation, false statement or fraud (Art. 239) (1) organization, formation and administration of labor
organization;
F: THEU-PTGWO filed a petition for certification election. (2) negotiation and administration of collective bargaining
THIGCI opposed THEU’s petition because of the list of union agreements;
members submitted, 71 out of 192 signatories to the petition (3) all forms of concerted union action;
were actual rank-and-file employees (4) organizing, managing, or assisting union conventions,
meetings, rallies, referenda, teach-ins, seminars,
H: While Art 245 expressly prohibits supervisory employees conferences and institutes;
from joining rank- and-file unions, it does not provide for the (5) any form of participation or involvement in
effect if a rank-and-file union counts supervisory employees representation proceedings, representation elections,
among its members, or vice-versa. It is necessary, before consent elections, union elections; and
granting an order allowing cert elec, to inquire into the (6) other activities or actions analogous to the foregoing.
composition of any labor org when its status is challenged by (b) This prohibition shall equally apply to foreign donations,
Art 245. grants or other forms of assistance, in cash or in kind, given
directly or indirectly to any employer or employer’s
NOTE: Now, Art. 251-A (introduced by RA 9481) provides the organization to support any activity or activities affecting
effect of such an inclusion: "The inclusion as union members trade unions.
of employees outside the bargaining unit shall not be a ground
for the cancellation of the registration of the union. Said (c) The Secretary of Labor shall promulgate rules and
employees are automatically deemed removed from the list of regulations to regulate and control the giving and receiving of
membership of said union." such donations, grants, or other forms of assistance, including
the mandatory reporting of the amounts of the donations or
4. Aliens grants, the specific recipients thereof, the projects or activities
proposed to be supported, and their duration.
General rule (Art. 275): all aliens and foreign organizations are
strictly prohibited from engaging in trade union activities and Bk. V, Rule 2, Sec. 2, par. 1., 3rd sentence: Who may join labor
giving donations, grants, or other forms of assistance to an unions and worker's associations. – Alien employees with
employers or employers’ organization. valid working permits issued by the Department may exercise
• Exception: aliens may exercise the right to self- the right to self-organization and join or assist labor unions
organization and join or assist labor organizations for for purposes of collective bargaining if they are nationals of a
purposes of collective bargaining. Requisites: country which grants the same or similar rights to Filipino
o Working in the country with valid permits workers, as certified by the Department of Foreign Affairs, or
issued by the Secretary of Labor which has ratified either ILO Convention No. 87 and ILO
o They are nationals of countries which Convention No. 93.
1. Grants the same or similar rights to Filipino
workers, as certified by DFA, or 5. Security Guards
2. Ratified ILO Conventions No. 87 and 98
EO 111 prohibits “armed persons,” which presumably include
security guards, from bringing in, introducing, or escorting
Art. 276 does NOT prohibit foreign individuals, organizations,
individuals seeking to replace strikers in entering or leaving
or entities from giving assistance to labor organizations/
the premises of a strike area, or working in place of the strikers
workers’ groups/ auxiliaries in relation to trade union
activities. It allows them to give assistance, but only with prior EO 111 (Dec 24, 1986)
permission from the Secretary of Labor. “While therefore under the old rules, security guards were
barred from joining a labor organization of the rank and file,
under RA 6715, they may now freely join a labor organization
Labor Code, Art. 275. Prohibition against aliens; exceptions. -
of the rank and file or that of the supervisory union, depending
All aliens, natural or juridical, as well as foreign organizations
on their rank. By accommodating supervisory employees, the
are strictly prohibited from engaging directly or indirectly in all
Secretary of Labor must likewise apply the provisions of RA
forms of trade union activities without prejudice to normal
6715 to security guards by favorably allowing them free
contacts between Philippine labor unions and recognized
access to a labor organization, whether rank and file or
international labor centers: Provided, however, That aliens
supervisory, in recognition of their constitutional right to self-
working in the country with valid permits issued by the
organization.”
Department of Labor and Employment, may exercise the right
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MANILA ELECTRIC CO. v. SEC. (1991) LC, Art. 251, supra p. 7


D: EO 111 eliminated the disqualification of security guards.
While therefore under the old rules, security guards were LC, Art 82. Coverage. As used herein, “managerial employees”
barred from joining a labor organization of the rank and file, refer to those whose primary duty consists of the
under RA 6715, they may now freely join a labor organization management of the establishment in which they are employed
of the rank and file or that of the supervisory union, depending or of a department or subdivision thereof, and to other officers
on their rank. or members of the managerial staff.

F: Security guards were not allowed to participate in the LC, Art. 218 (m), supra p. 7
certification election.
Book V, Rule II, Sec. 2., supra p. 9
H: The IRR of RA 6715, insofar as they disqualify security
guards from joining a rank and file organization are null and Book V, Rule I, Sec. 1 (hh), (xx), (nn), supra p. 10
void, for being not germane to the object and purposes of EO
111 and RA 6715 upon which such rules purportedly derive PAPER INDUSTRIES CORP v. LAGUESMA (2000)
statutory moorings. D: 2 kinds of managerial employees: managerial per se and
supervisors. Where such power, recommendatory in character,
D. Excluded Employees/ Workers is subject to evaluation, review and final action by the dept
CATEGORY REASON FOR EXCLUSION BASIS heads and other higher executives in the company is not an
There would be a conflict of exercise of independent judgment as required by law.
Arts. 251,
interest because their
88, F: 3 labor organizations (PBSTSEU, FFW and ALU) were vying
Managerial interests are more aligned
218(m); to be the sole and exclusive bargaining agent of the
with those of the employer
RA 9481 supervisory and technical staff employees of PICOP. During
than of the employees.
Same rationale as the pre-election conference, PICOP questioned the inclusion
Juris- of some section heads and supervisors in the list of voters,
managerial employees
Confidential prudence, claiming that under the reorganization program, they are now
(“doctrine of necessary
infra considered as managerial employees, with the right to hire
implication”)
An owner cannot bargain and fire, thus disqualified from joining any labor organization.
with himself or his co-
owners; not completely Juris- H: The job description of the subject employees show that
Members of a they were not holding managerial but supervisory positions.
excluded – they may form prudence,
cooperative
organizations which are not infra
unions, for the purpose of AD GOTHONG MFG v. SEC CONFESOR (1999)
mutual aid and protection D: Elements to be a member of the managerial staff – primary
Those organizations have duty consists of the performance of work directly related to
been granted immunity management policies; customarily and regularly exercises
from local jurisdiction by Juris- discretion and independent judgment in the performance of
Employees of his functions; regularly and directly assists in the
the Philippine government, prudence,
international orgs management of the establishment; does not devote more than
so Philippine laws don’t infra
apply to them vis-à-vis 20% of his time to work other than those described above.
their employees.
Not completely excluded – Art. 249; F: Yap and Plaza were allowed to vote in the certification
they may form labor Bk. V, election but only on the condition that their votes be
Non-employees organizations, but only for Rule 2, considered challenged because they were supervisory
the purpose of mutual aid Sec. 2, employees.
and protection par. 3
H: They were rank-and-file employees because they did not
1. Managerial Employees exercise any action which would require independent thinking
MANAGERIAL SUPERVISORY to be a managerial employee.
- Includes other officers or - In the interest of the
members of the managerial employer, effectively 2. Confidential Employees
staff recommend managerial
- Primary duty: management actions Employees who by the nature of their functions
of the establishment in which - Exercise of authority 1. Assist or act in a confidential capacity, and
they are employed or of a requires the use of 2. Have access to confidential matters of persons who
department or subdivision independent judgment formulate, determine, and effectuate management
thereof - Test: W/N recommendation policies in the field of labor relations
- Vested with the powers or is: • Do NOT constitute a distinct category with regard to
prerogatives to: - Discretionary or the right to self-organization
- Lay down and execute judgmental (not clerical) • May attach to a managerial position or a non-
management policies - Independent (not a managerial position (e.g. it has been held that legal
- Hire, transfer, suspend, dictation of someone else) secretaries, although they are neither managers no
lay-off, recall, discharge, - Effective (given particular supervisors, are confidential employees)
assign or discipline weight in making the NOTE: Excluded by jurisprudential rule. Nowhere in the law.
employees management decision)
UP LAW C2017 LABOR 2 (PROF. DAWAY) MIDTERMS REVIEWER | 13

TUNAY NA PAGKAKAISA NG MANGGAGAWA SA ASIAN owner cannot bargain with himself or his co-owners"
BREWERY v. ASIAN BREWERY INC (2010)
D: Extended prohibition to confidential employees - those who F: Several employees were part of the Central Negros Electric
by reason of positions or nature of work are required to assist Cooperative, Inc. and chose to withdraw their membership
or act in a fiduciary manner to managerial employees and are from the cooperative, to join CENECO Union of Rational
likewise privy to sensitive and highly confidential records. Employees for purposes of a CBA. Withdrawal was opposed by
cooperative.
F: ABI’s management stopped deducting union dues from
eighty-one (81) employees (secretaries, quality control, etc), H: Membership in the cooperative is on voluntary basis — the
believing that their membership in BLMA-INDEPENDENT right to join an organization necessarily includes right not to
violated the CBA. BLMA-INDEPENDENT claimed that ABI’s join.
actions restrained the employees’ right to self-organization.
4. Employees of International Organizations
H: They are rank-and-file employees eligible for inclusion in
the union, after ABI was unable to clearly show that they fell International Organization
under the category of confidential employees (excluded from • Organization set up by agreement by 2 or more
unions, along with managerial employees. states, endowed with some degree of international
legal personality, such that they are capable of
PEPSI COLA v. SEC OF LABOR (1999) exercising specific rights, duties and powers.
D: In collective bargaining, managerial employees are • e.g. UN, International Rice Research Institute,
supposed to be on the side of the employer. The employer is International Catholic Migration Commission
not assured of such protection if these employees are union Specialized Agency
members. Confidential = managerial by doctrine of necessary • An international organization with a function in a
implication. particular field.

F: Pepsi Cola Employee’s Organization-UOEF (Union) was part According to the ILO, there are 3 reasons for granting
of a federation, which included rank-and-file employee unions. international organizations immunity from local jurisdiction
Pepsi sought to revoke the charter affiliation of the Union (International Catholic Migration Commission v. Calleja):
because Union was composed of managers and supervisors. 1. International institutions should have a status which
protects them against control or interference by any
H: Managers and supervisors cannot form part of federation one government in the performance of functions for
with rank-and-file employees because it would lead to a the effective discharge of which they are responsible
conflict of interest in collective bargaining. to democratically constituted international bodies in
which all the nations concerned are represented.
STANDARD CHARTERED BANK EMPLOYEES UNION 2. No country should derive any national financial
v. SCB (2008) advantage by levying fiscal charges on common
D: Jurisprudence has extended the prohibition to confidential international funds.
employees. 3. The international organization should, as a collectivity
of States members, be accorded the facilities for the
F: Whether certain employees (bank's Chief Cashiers and conduct of its official business customarily extended
Assistant Cashiers, personnel of the Telex Department and HR to each other by its individual member States.
staff) are confidential employees and such should be excluded The grant of immunity from local jurisdiction is a political
from the appropriate bargaining unit? question whose resolution by the Executive Branch is
conclusive upon the courts.
H: Absent any proof that Chief Cashiers and Asst Cashiers,
personnel of the Telex department and 1 HR Staff have INTERNATIONAL CATHLOIC MIGRATION COMMISSION
mutuality of interest with other rank and file employees, then v. CALLEJA (1990)
they are excluded from bargaining unit. D: Diplomatic immunity is to shield the affairs of international
organizations, in accordance with international practice, from
3. Workers-Members of a Cooperative political pressure or control by the host country to the
prejudice of member States of the organization, and to ensure
Employees of a cooperative who are also members or co- the unhampered performance of their functions.
owners thereof cannot invoke the right to collective
bargaining. However, they may form organizations for the F: TUPAS is petitioning for a certification election among the
purpose of mutual aid and protection. employees of ICMC while in IRRI, Kapisanan is asking for the
same. Both organizations opposed on the ground that as
Employees of a cooperative who are not members or co- international organizations, they have diplomatic immunity.
owners thereof may exercise the rights to self-organization,
collective bargaining, and other rights enshrined in the H: IRRI and ICMC have diplomatic immunity.
Constitution and existing laws.

CENECO v. DOLE (1991)


D: "Employees who at the same time are members of an
electric cooperative are not entitled to form or join unions for
purposes of collective bargaining agreement, for certainly an
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5. Non-Employees LC Art. 252 refers to unfair labor practices committed by


employers. It enumerates 9 ULPs, which can be grouped into 4
Under Art. 249, the right to form labor organizations is also categories:
enjoyed by the ff. non-employees, but only for the purpose of
mutual aid and protection (as opposed to collective CATEGORY ULP NOTES
bargaining): e.g. Dismissal of union
1. Ambulant, intermittent, and itinerant workers members upon their refusal
2. Self-employed people to give up their membership,
3. Rural workers Right to self- under the pretext of
4. Those without any definite employers org retrenchment; Dismissal of
Interference an employee due to her
LC, Art. 249, last sentence: Ambulant, intermittent and with having joined a union, under
itinerant workers, self-employed people, rural workers and the pretext of inefficiency
those without any definite employers may form labor Interference may constitute
organizations for their mutual aid and protection. Formation/
ULP even if committed
admin of
before the union is formally
labor org
SINGER SEWING MACHINE CO v. DRILON (1993) registered.
D: If the control test is not satisfied, there exists no employer- Discrimination is NOT the
employee relationship. If union members are not employees, same as differentiation/
no right to organize for purposes of bargaining, or to be classification.
certified as such bargaining agent. There are valid
T&C of differentiations due to
F: SIMACUB filed a petition for direct certification as sole and employment different job requirements or
exclusive bargaining agent of collectors of the Company. The contributions, e.g.
latter opposed it on the ground that the union members are management classifies jobs
not their employees but are independent contractors. Discrimination and grants them different
in regard to pay or benefits.
H: Union members, as collecting agents, are independent ULP consists in employer’s
contractors and have no right to self-organization for the retaliation against employee.
purpose of collective bargaining. Employer’s motive is
EE who immaterial.
E. Party Protected testifies Nature of employee’s
testimony is immaterial (may
What is entitled to constitutional protection is labor, or more or may not be true; may or
specifically the working men and women, not labor may not be union- related)
organizations. The latter are merely the instrumentalities Duty to
through which their welfare may be promoted and fostered bargain Self-explanatory
Violation of
(Mactan Workers Union v. Aboitiz). collectively
CBA Self-explanatory
The labor union that gets the majority vote as the exclusive Membership/
bargaining representative does not act for its members alone. withdrawal
It represents all the employees in such a bargaining unit as condition Self-explanatory
(Mactan Workers Union v. Aboitiz). of
employment
MACTAN WORKERS UNION v. ABOITIZ (1972) ULP when motivated by
D: Benefits of a collective bargaining agreement extend to the desire to:
laborers and employees in the collective bargaining unit, - Prevent employees from
including those who do not belong to the chosen bargaining organizing and selecting a
labor organization. collective bargaining
representative
Contracting
F: Cebu Shipyard & Engineering Works, Inc. (CSEWI) and Attitude - Get rid of union members
out services/
Associated Labor Union (ALU) had a profit-sharing agreement towards labor - Escape duty to bargain
functions of
with the workers in the CBA (share of 10% of the net organization collectively
members
proceeds). Mactan Workers Union (MWU) was another union NOT ULP if done for
of workers in Cebu Shipping Lines. MWU filed a money claim business reasons, such as:
because they were not given their 10% profit-share by ALU. - Decline in business
- Inadequacy of
H: MWU entitled to share in profit-sharing agreement. equipment
- Need to reduce cost
F. Sanctions for Violations of Right Payment of
Giving financial support to
negotiation/
the union is tantamount to
When it comes to the exercise and protection of the right to attorney’s
company domination of
self-organization, an organization doesn’t necessarily have to fees as part
union.
be a union (it can be an association) and its purpose doesn’t of settlement
necessarily have to be collective bargaining (it can just be for
mutual aid and protection) (Art. 252).
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LC Art. 255 refers to unfair labor practices committed by labor OFFENSE FILIPINO ALIEN
organizations. It enumerates 6 ULPs, which can be grouped 1. Same fine,
into 3 categories: 1. Fine (Php1,000-
imprisonment, or
Php10,000)
fine/imprisonment
Violation of 2. Imprisonment (3
CATEGORY ULP NOTES combo as a Filipino
LC provisions mos- 3yrs), or
In the exercise e.g. union threatens violator, and
Restraint/c 3. Both fine and
of their right to employees with bodily harm 2. Summary
oercion of imprisonment
self- or loss of their jobs in order to deportation
employees
organization force them to strike 1. Fine (Php1,000-
Violation of
Duty to Php10,000)
provisions of
bargain Self-explanatory 2. Imprisonment (3
Violation of Art. 270 Same as Filipino
collectively mos- 3yrs), or
(prohibited
CBA Self-explanatory 3. Both fine and
activities)
A union member can’t be imprisonment
expelled from the union and 1. Same fine,
then dismissed: imprisonment, or
Discriminate - For personal reasons Violation of fine/imprisonment
against - For causes not included in Title VII 1. Fine (Php1,000- combo as a Filipino
employee the closed-shop (strikes and Php10,000) violator
agreement, if any lockouts and 2. Imprisonment (3 2. Immediate and
- In an arbitrary or whimsical foreign mos- 3yrs), or summary deportation
manner involvement 3. Both fine and 3. Permanently barred
Practice of creating/ in trade union imprisonment from re- entering the
spreading employment by activities) country (Exception:
Pay/deliver using more employees or special permission
Causing or from President)
money or other taking more time than is
requesting
things of value necessary for a particular job.
employer to
for services It’s a ULP because it’s Prosecution under Art. 278 precludes prosecution for the same
not performed considered economically act under the RPC, and vice versa.
wasteful. This is called
“featherbedding”. Regular courts have jurisdiction over criminal actions under
This is not only unlawful, but Art. 278, which punishes violations of Art. 270.
immoral, because the union is All criminal offenses punished in the Labor Code shall be
Pay under the concurrent jurisdiction of the ff.:
basically selling out. The
negotiation or 1. Municipal Courts
resulting CBA would probably
attorney’s fees 2. City Courts
be a “sweetheart contract,”
as part of 3. Courts of First Instance
i.e. doesn’t substantially
settlement
improve employees’ wages
and benefits. LC, Art. 252. Non-abridgment of right to self-organization. It
shall be unlawful for any person to restrain, coerce,
Criminal liability for ULPs differs depending on who discriminate against or unduly interfere with employees and
participated in, authorized, and ratified ULPs: workers in their exercise of the right to self-organization. Such
right shall include the right to form, join, or assist labor
WHO COMMITTED ULP? WHO IS CRIMINALLY LIABLE? organizations for the purpose of collective bargaining through
Employer 1. Officers representatives of their own choosing and to engage in lawful
2. Agents concerted activities for the same purpose for their mutual aid
Labor organization 1. Officers and protection, subject to the provisions of Article 264 of this
2. Members of governing Code.
boards
3. Representatives LC, Art. 254. Unfair labor practices of employers. It shall be
4. Agents unlawful for an employer to commit any of the following unfair
5. Members labor practice:
1) To interfere with, restrain or coerce employees in the
LC Art. 270 enumerates 5 prohibited activities, which can be exercise of their right to self-organization;
summarized as follows: (LP BAO) 2) To require as a condition of employment that a person or
1. Unlawful strike or Lockout an employee shall not join a labor organization or shall
2. Obstruction/interference with peaceful Picketing withdraw from one to which he belongs;
3. Strike-Breaker
4. Unnecessary involvement of public official/employee LC, Art. 255. Unfair labor practices of labor organizations. It
or Armed person shall be unfair labor practice for a labor organization, its
5. Obstruction of ingress/egress officers, agents or representatives:
1) To restrain or coerce employees in the exercise of their
Filipinos and aliens/foreigners are punished similarly (but not right to self- organization. However, a labor organization
exactly the same) for violations of the right to self-organize. shall have the right to prescribe its own rules with respect
to the acquisition or retention of membership;
2) To cause or attempt to cause an employer to discriminate
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against an employee, including discrimination against an reinstatement with full backwages. Any union officer who
employee with respect to whom membership in such knowingly participates in an illegal strike and any worker or
organization has been denied or to terminate an employee union officer who knowingly participates in the commission of
on any ground other than the usual terms and conditions illegal acts during a strike may be declared to have lost his
under which membership or continuation of membership employment status: Provided, That mere participation of a
is made available to other members; worker in a lawful strike shall not constitute sufficient ground
for termination of his employment, even if a replacement had
LC, Art. 294. Penalties. Except as otherwise provided in this been hired by the employer during such lawful strike.
Code, or unless the acts complained of hinge on a question of
interpretation or implementation of ambiguous provisions of (2) No person shall obstruct, impede, or interfere with, by force,
an existing collective bargaining agreement, any violation of violence, coercion, threats or intimidation, any peaceful
the provisions of this Code declared to be unlawful or penal in picketing by employees during any labor controversy or in the
nature shall be punished with a fine of not less than One exercise of the right to self-organization or collective
Thousand Pesos (P1,000.00) nor more than Ten Thousand bargaining, or shall aid or abet such obstruction or
Pesos (P10,000.00) or imprisonment of not less than three interference.
months nor more than three years, or both such fine and
imprisonment at the discretion of the court. (3) No employer shall use or employ any strike-breaker, nor
shall any person be employed as a strike-breaker.
In addition to such penalty, any alien found guilty shall be
summarily deported upon completion of service of sentence. (4) No public official or employee, including officers and
Any provision of law to the contrary notwithstanding, any personnel of the New Armed Forces of the Philippines or the
criminal offense punished in this Code, shall be under the Integrated National Police, or armed person, shall bring in,
concurrent jurisdiction of the Municipal or City Courts and the introduce or escort in any manner, any individual who seeks to
Courts of First Instance. replace strikers in entering or leaving the premises of a strike
area, or work in place of the strikers. The police force shall
LC, Art. 295. Who are liable when committed by other than keep out of the picket lines unless actual violence or other
natural person. If the offense is committed by a corporation, criminal acts occur therein: Provided, That nothing herein shall
trust, firm, partnership, association or any other entity, the be interpreted to prevent any public officer from taking any
penalty shall be imposed upon the guilty officer or officers of measure necessary to maintain peace and order, protect life
such corporation, trust, firm, partnership, association or entity. and property, and/or enforce the law and legal order. (As
amended by Executive Order No. 111, December 24, 1986)
LC, Art. 278. Penalties.
(1) Any person violating any of the provisions of Article 264 of (5) No person engaged in picketing shall commit any act of
this Code shall be punished by a fine of not less than one violence, coercion or intimidation or obstruct the free ingress
thousand pesos (P1,000.00) nor more than ten thousand to or egress from the employer’s premises for lawful purposes,
pesos (P10,000.00) and/or imprisonment for not less than or obstruct public thoroughfares.
three months nor more than three (3) years, or both such fine
and imprisonment, at the discretion of the court. Prosecution IV. LABOR ORGANIZATION .
under this provision shall preclude prosecution for the same
act under the Revised Penal Code, and vice versa. A. Policy
• Promote free trade unionism as an instrument for the
(2) Upon the recommendation of the Minister of Labor and
enhancement of democracy and the promotion of
Employment and the Minister of National Defense, foreigners
social justice and development
who violate the provisions of this Title shall be subject to
• Foster free and voluntary organization of a strong and
immediate and summary deportation by the Commission on
united labor movement
Immigration and Deportation and shall be permanently barred
• Ensure participation of workers in decision and
from re-entering the country without the special permission of
policy-making processes affecting their rights, duties,
the President of the Philippines.
and welfare
in rel. to LC, Art. 270. Prohibited activities. • Determination of exclusive bargaining agent shall be
non-litigious and free from technicalities of law and
(1) No labor organization or employer shall declare a strike or procedure.
lockout without first having bargained collectively in
accordance with Title VII of this Book or without first having LC, Art. 217 A (a), (b), (c), (g); and 217 B
filed the notice required in the preceding Article or without the A. It is the policy of the State:
necessary strike or lockout vote first having been obtained and (a) To promote and emphasize the primacy of free collective
reported to the Ministry. bargaining and negotiations, including voluntary
arbitration, mediation and conciliation, as modes of
No strike or lockout shall be declared after assumption of settling labor or industrial disputes;
jurisdiction by the President or the Minister or after (b) To promote free trade unionism as an instrument for the
certification or submission of the dispute to compulsory or enhancement of democracy and the promotion of social
voluntary arbitration or during the pendency of cases involving justice and development
the same grounds for the strike or lockout. (c) To foster the free and voluntary organization of a strong
and united labor movement
Any worker whose employment has been terminated as a (g) To ensure the participation of workers in decision and
consequence of any unlawful lockout shall be entitled to policy-making processes affecting their rights, duties and
welfare.
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B. To encourage a truly democratic method of regulating the acquired legal personality through the issuance of a
relations between the employers and employees by means of charter certificate by a duly registered federation or
agreements freely entered into through collective bargaining, national union, and reported to the Regional Office in
no court or administrative agency or official shall have the accordance with Rule III, Section 2-E of these Rules.
power to set or fix wages, rates of pay, hours of work or other D.O. 40-B-03 amendment for this reads:
terms and conditions of employment, except as otherwise (i) “Chartered Local” refers to a labor organization in the
provided under this Code private sector operating at the enterprise level that
acquired legal personality through registration with the
Book V, Rule VI, Sec. 1. Policy – It is the policy of the State to Regional Office in accordance with Rule III, Section 2-E of
promote free trade unionism through expeditious procedures these Rules.
governing the choice of an exclusive bargaining agent. The
determination of such exclusive bargaining agent is a non- 1. Labor Organization
litigious proceeding and, as far as practicable, shall be free
from technicalities of law and procedure, provided only that in LC, Art. 218 (g), supra
every case, the exclusive bargaining agent enjoys the majority Book V, Rule I, Sec. 1 (cc), supra
support of all the employees in the bargaining unit
Union
B. Definition: Labor Organizations/ Unions Book V, Rule I, Sec. 1 (zz) , supra

LC, Art. 217 A (a), (b), (c), (g), supra p. 16 Workers Association
Book V, Rule I, Sec. 1 (ccc), supra
LC, Art. 218 (g), (h), (i), (j)
(g) "Labor organization" means any union or association of C. Union Rationale
employees which exists in whole or in part for the purpose
of collective bargaining or of dealing with employers The union is nothing but the means of assuring that the
concerning terms and conditions of employment. fundamental objectives of the State (promoting full
(h) "Legitimate labor organization" means any labor employment and equality in employment, ensuring equal work
organization duly registered with the Department of Labor opportunities, etc.) laid down in the Constitution would be
and Employment, and includes any branch or local achieved. It is the instrumentality through which the employer
thereof. can achieve the goal of economic well-being.
(i) "Company union" means any labor organization whose
formation, function or administration has been assisted GUIJARNO v. CIR (1973)
by any act defined as unfair labor practice by this Code.
D: When the union itself oppresses the laborers, laborers
(j) "Bargaining representative" means a legitimate labor
should be given protection against it the same way it is being
organization whether or not employed by the employer.
protected against oppressive employers. Unions are for
employees’ protection.
Book V, Rule I, Sec. 1 (cc) (ee)
(cc) "Registration Proceedings" refer to proceedings involving
F: Petitioners were dismissed by Central Santos Lopez Co,
the application for registration of labor organizations.
due to a closed shop provision (the employer can dismiss a
(ee) "Hearing Officers" are officers appointed/designated in the
laborer if he is terminated from the union) which was
Regional Office and authorized to hear and decide cases
prevailing at the time of their dismissal, but not when they
under Section 2 of Republic Act No. 6715 and whose
were hired.
decision is appealable to the Commission.
H: Illegal dismissal. The provision should not be applied
D.O. 40- B-03, s. 2004 - amended Rule I, Sec. 1(i), infra and
retroactively.
Rule III, Sec. 2(e), infra p. 20
D. Government Regulation:
Omnibus Rules, Book V, Rule I, Sec. 1 (ff) (zz) (ccc) (t) (i)
Implementing the Policy on Trade Unionism
(ff) “Legitimate Workers’ Association” refers to an association
of workers organized for mutual aid and protection of its
1987 Const., Art. III. Sec. 16: All persons shall have the right to
members or for any legitimate purpose other than
collective bargaining registered with the Department in a speedy disposition of their cases before all judicial, quasi-
judicial, or administrative bodies.
accordance with Rule III, Sections 2 of these Rules.
(zz) “Union” refers to any labor organization in the private
LC, Art. 217 A (b) (c), supra p. 16
sector organized for collective bargaining and for other
legitimate purposes.
Book V, Rule VI, Sec. 1, supra p. 17
(ccc) “Workers’ Association” refers to an association of
workers organized for the mutual aid and protection of its
members or for any legitimate purpose other than ELECTROMAT v. HON. LAGUNZAD (2011)
collective bargaining D: It is government policy to encourage the affiliation of a local
(t) “Exclusive Bargaining Representative” refers to a legitimate union with a federation or national union to enhance the
labor union duly recognized or certified as the sole and local's bargaining power
exclusive bargaining representative or agent of all the
employees in a bargaining unit. F: Electromat argued that D.O. 40-03 (which reduces
(i) “Chartered Local” refers to a labor organization in the requirements for local chapters) was an unconstitutional
private sector operating at the enterprise level that reduction of the LC union registration requirement.
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H: D.O. valid, expresses government policy of promoting case a statement to this effect shall be included in
unionism. the application
5. the applicant's constitution and by-laws, minutes of
1. Union Registration: Procedure its adoption or ratification, and the list of the
members who participated in it. The list of ratifying
a. Requirements members shall be dispensed with where the
constitution and by-laws was ratified or adopted
For federations, national unions, or industry or trade union during the organizational meeting. In such a case, the
center or an independent union (Art. 240): factual circumstances of the ratification shall be
1. P50.00 recorded in the minutes of the organizational
2. Names of officers, addresses, principal address of the meeting(s).
labor organization, minutes of the organizational For federations and national unions:
meetings, and list of workers who participated in the 1. Statement indicating the name of the applicant labor
meetings union, its principal address, the name of its officers
3. If independent union, the name of all members and their respective addresses;
comprising at least 20% of all the employees in the 2. Minutes of the organizational meetings and the list of
bargaining unit employees who participated in the said meetings;
4. If union has been in existence for one or more years, 3. If it has been in existence for one or more years,
the copies of its annual financial reports Annual financial reports. Unless it has not collected
5. Four copies of the Constitution and by-laws of the any amount from the members, in which case a
applicant union, minutes of its adoption of statement to this effect shall be included in the
ratification, and the list of the members who application;
participated in it. 4. The applicant union's constitution and by-laws,
Additional requirements for federations or national unions: minutes of its adoption or ratification, and the list of
1. Proof of the affiliation of at least 10 locals or chapters the members who participated in it.
supporting the registration of such applicant 5. The list of ratifying members shall be dispensed with
federation or national union. The locals or chapters where the constitution and by-laws was ratified or
must be a duly recognized collective bargaining agent adopted during the organizational meetings. In such a
in the establishment or industyry where it operates. case, the factual circumstances of the ratification
2. Names and addresses of the companies where the shall be recorded in the minutes of the organizational
locals or chapters operate, and the list of all the meetings.
members in each company. 6. The resolution of affiliation of at least 10 legitimate
For local chapters (Art. 234-A): labor organizations, whether independent unions or
1. Names of chapter’s officers, addresses, and the chartered locals
principal office of the chapter 7. The name and addresses of the companies where the
2. The chapter’s constitution and by-laws. If these are affiliates operate and the list of all the members in
the same as the Constitution and by-laws of the each company involved.
federation or national union, such fact shall be 8. Labor organizations operating within an identified
indicated. industry may also apply for registration as a
3. Charter certificate from the registered federation or federation or national union within the specified
national union. industry by submitting to the Bureau the same set of
4. The requirements shall be certified under oath by the documents.
secretary or treasurer of the chapter and attested by For workers’ associations:
its president. 1. The name of the applicant association, its principal
address, the name of its officers and their respective
Requirements under the Implementing Rules: addresses;
Note: There is no conflict between the requirements under the 2. The minutes of the organizational meeting(s) and the
Labor Code and the Implementing Rules. They have just been list of members who participated therein;
separately listed down in the Implementing Rules. 3. The financial reports of the applicant association if it
has been in existence for one or more years, unless it
For independent labor unions: has not collected any amount from the members, in
1. Name of the applicant labor union, principal address, which case a statement to this effect shall be
name of its officers, their respective addresses, included in the application;
approximate number of employees in the bargaining 4. The applicant's constitution and by-laws to which
unit where it seeks to operate, with a statement that it must be attached the names of ratifying members,
is not reported as a chartered local of any federation the minutes of adoption or ratification of the
or national union. constitution and by-laws and the date when
2. the minutes of the organizational meetings and the ratification was made, unless ratification was done in
list of employees who participated in the said the organizational meeting(s), in which case such fact
meetings shall be reflected in the minutes of the organizational
3. the name of all its members comprising at least 20% meeting(s).
of the employees in the bargaining unit For chartered local:
4. the annual financial reports if the applicant has been 1. The names of the local/chapter’s officers, their
in existence for one or more years, unless it has not addresses, and the principal office of the local
collected any amount from the members, in which chapter, and
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2. The chapter’s constitution and by-laws, provided, that privileges of a legitimate labor organization only upon the
where the chapter’s constitution and by- laws are the submission of the following documents in addition to its
same as that of the federation or the national union, charter certificate:
this fact shall be indicated accordingly. (a) The names of the chapter's officers, their addresses, and
3. Charter certificate issued by a duly-registered the principal office of the chapter; and
federation or national union. (b) The chapter's constitution and by-laws:
4. The documents shall be certified under oath by the
secretary or treasurer of the local/chapter and Provided, That where the chapter's constitution and by-laws
attested to by its President. are the same as that of the federation or the national union,
this fact shall be indicated accordingly.
• Local chapters acquire legal personality ONLY for the
purposes of filing a petition for certification election The additional supporting requirements shall be certified
from the date it was issued a charter certificate. under oath by the secretary or treasurer of the chapter and
• Local unions are considered principals while the attested by its president.
federation is the agent. Mere affiliation does not
divest the local union of its own personality. The LC, Art. 243. Additional requirements for federations or
mother federation cannot does not automatically national unions. Subject to Article 238, if the applicant for
have license to act independently of the local union. registration is a federation or a national union, it shall, in
• The Bureau of Labor Relations shall act on all addition to the requirements of the preceding Articles, submit
applications for registration within 30 days from the following:
filing. It may approve the application and issue the (a) Proof of the affiliation of at least ten (10) locals or
certification or deny the application for failure to chapters, each of which must be a duly recognized
comply with requirements. collective bargaining agent in the establishment or
• If the requirements are incomplete, the Regional industry in which it operates, supporting the registration
Office or the Bureau shall notify the applicant of such applicant federation or national union; and
concerned of the necessary requirements within 5 (b) The names and addresses of the companies where the
days from receipt of application. The applicant must locals or chapters operate and the list of all the members
complete the requirements within 30 days from in each company involved
receipt of notice.
• The denial of the petition for registration may be LC, Art. 241. Action on application – The Bureau shall act on
appealed by the applicant to the Bureau within 10 all applications for registration within thirty (30) days from
days from receipt of notice. The appeal shall be filing. All requisite documents and papers shall be certified
decided within 20 days from receipt of the records of under oath by the secretary or the treasurer of the
the case. organization, as the case may be, and attested to by its
president.
LC, Art. 240 (as amended by RA 9481), Requirements of
Registration – A federation, national union or industry or trade LC, Art. 218 (b) “Bureau” means the Bureau of Labor Relations
union center or an independent union shall acquire legal and/or the Labor Relations Divisions in the regional offices
personality and shall be entitled to the rights and privileges established under Presidential Decree No. 1, in the Department
granted by law to legitimate labor organizations upon of Labor.
issuance of the certificate of registration based on the
following requirements: Book V, Rule III, Sec. 2 – Requirements for application.
(a) Fifty pesos (P50.00) registration fee; A. The application for registration of an independent labor
(b) The names of its officers, their addresses, the principal union shall be accompanied by the following documents:
address of the labor organization, the minutes of the 1) the name of the applicant labor union, its principal
organizational meetings and the list of the workers who address, the name of its officers and their respective
participated in such meetings; addresses, approximate number of employees in the
(c) In case the applicant is an independent union, the names bargaining unit where it seeks to operate, with a
of all its members comprising at least twenty percent statement that it is not reported as a chartered local of
(20%) of all the employees in the bargaining unit where it any federation or national union;
seeks to operate; 2) the minutes of the organizational meeting(s) and the list
(d) If the applicant union has been in existence for one or of employees who participated in the said meeting(s);
more years, copies of its annual financial reports; and 3) the name of all its members comprising at least 20% of
(e) Four copies of the constitution and by-laws of the the employees in the bargaining unit;
applicant union, minutes of its adoption or ratification, and 4) the annual financial reports if the applicant has been in
the list of the members who participated in it existence for one or more years, unless it has not
collected any amount from the members, in which case a
LC, Art. 240-A. Chartering and Creation of a Local Chapter- A statement to this effect shall be included in the
duly registered federation or national union may directly create application;
a local chapter by issuing a charter certificate indicating the 5) the applicant's constitution and by-laws, minutes of its
establishment of the local chapter. The chapter shall acquire adoption or ratification, and the list of the members who
legal personality only for purposes of filing a petition for participated in it. The list of ratifying members shall be
certification election from the date it was issued a charter dispensed with where the constitution and by-laws was
certificate. ratified or adopted during the organizational meeting.

(b) The chapter shall be entitled to all other rights and In such a case, the factual circumstances of the ratification
UP LAW C2017 LABOR 2 (PROF. DAWAY) MIDTERMS REVIEWER | 20

shall be recorded in the minutes of the organizational 1. 20% Membership requirement


meeting(s).
LC, Art. 240, supra p. 19
B. The application for registration of federations and national
unions shall be accompanied by the following documents: MARIWASA SIAM CERAMICS v. SEC. OF LABOR (2009)
1) a statement indicating the name of the applicant labor D: The 20% requirement is reckoned at the time of application
union, its principal address, the name of its officers and for union registration. Those who resign after the union’s
their respective addresses; registration has been granted are still counted in the
2) the minutes of the organizational meeting(s) and the list membership requirement.
of employees who participated in the said meeting(s);
3) the annual financial reports if the applicant union has F: Mariwasa wanted to disqualify SMMSC-Independent as an
been in existence for one or more years, unless it has not active labor union for failing to comply with the 20%
collected any amount from the members, in which case a membership requirement—some members presented
statement to this effect shall be included in the affidavits claiming they were forced to join. Two signatures
application; also repeated themselves on the union membership list, and
4) the applicant union's constitution and by-laws, minutes of four were no longer connected with Mariwasa.
its adoption or ratification, and the list of the members
who participated in it. The list of ratifying members shall H: At the time of the filing of the petition, the union was
be dispensed with where the constitution and by-laws composed of more than 20% of Mariwasa employees. The fact
was ratified or adopted during the organizational that two names appeared twice is not necessarily fraud or
meeting(s). In such a case, the factual circumstances of misrepresentation—and the affidavits were clearly prepared in
the ratification shall be recorded in the minutes of the advance and do not identify those who allegedly forced them
organizational meeting(s); to join. Withdrawals made after the granting of the registration
5) the resolution of affiliation of at least ten (10) legitimate are presumed to be made fraudulently.
labor organizations, whether independent unions or
chartered locals, each of which must be a duly certified or 2. Registration Proceeding
recognized bargaining agent in the establishment where it
seeks to operate; and Omnibus Rules, Book V, Rule I, Sec 1 (qq)
6) the name and addresses of the companies where the (qq) “Registration” refers to the process of determining
affiliates operate and the list of all the members in each whether the application for registration of a union or workers’
company involved. Labor organizations operating within association and collective bargaining agreement complies
an identified industry may also apply for registration as a with the documentary requirements for registration prescribed
federation or national union within the specified industry in Rules III, IV, and XVII of these Rules.
by submitting to the Bureau the same set of documents.
1st Mode: Issuance of Union Registration
C. The application for registration of a workers’ association
shall be accompanied by the following documents:
LC, Arts. 240 and 241, supra p. 19
1) the name of the applicant association, its principal
Book V, Rule III, Sec. 2(A), supra p. 19
address, the name of its officers and their respective
addresses;
2nd Mode: Union Affiliation
2) the minutes of the organizational meeting(s) and the list
of members who participated therein;
LC Art. 240-A, supra p. 19
3) the financial reports of the applicant association if it has
been in existence for one or more years, unless it has not
Omnibus Rules, Book V, Rule 1, Sec. 1(a)
collected any amount from the members, in which case a
(a) “Affiliate” refers to an independent union affiliated with a
statement to this effect shall be included in the
federation, national union or a chartered local which was
application;
subsequently granted independent registration but did not
4) the applicant's constitution and by-laws to which must be
attached the names of ratifying members, the minutes of disaffiliate from its federation, reported to the Regional Office
and the Bureau in accordance with Rule III, Sections 6 and 7 of
adoption or ratification of the constitution and by-laws
these Rules
and the date when ratification was made, unless
ratification was done in the organizational meeting(s), in
Book V, Rule III, Sec. 2 (e) as amended by DO 40-B-03, sec. 3;
which case such fact shall be reflected in the minutes of
DO 40-F-03
the organizational meeting(s).
E. A duly-registered federation or national union may directly
D. Application for registration of a workers' association
create a local/chapter by issuing a charter certificate
operating in more than one region shall be accompanied, in
indicating the establishment of the local/chapter. The
addition to the requirements in the preceding subsection, by a
local/chapter shall acquire legal personality only for purposes
resolution of membership of each member association, duly
of filing a petition for certification election from the date it was
approved by its board of directors.
issued a charter certificate.
E. The report of creation of a chartered local shall be
The local/chapter shall be entitled to all other rights and
accompanied by a charter certificate issued by the federation
privileges of a legitimate labor organization only upon the
or national union indicating the creation or establishment of
submission of the following documents in addition to its
the chartered local.
charter certificate:
a. the names of the local/chapter’s officers, their addresses,
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and the principal office of the local chapter, and denying the application for registration/returning the notice of
b. the chapter’s constitution and by-laws, provided, that change of name, affiliation, merger or consolidation shall be in
where the chapter’s constitution and by-laws are the writing stating in clear terms the reasons for the denial or
same as that of the federation or the national union, this return. The denial may be appealed to the Bureau if denial is
fact shall be indicated accordingly. The genuineness and made by the Regional Office or to the Secretary if denial is
due execution of the supporting requirements shall be made by the Bureau, within ten (10) days from receipt of such
certified under oath by the secretary or treasurer of the notice, on the ground of grave abuse of discretion or violation
local/chapter and attested to by its President. of these Rules.

a. Effect of Affiliation with a National Union Section 7. Procedure on appeal. The memorandum of appeal
shall be filed with the Regional Office or the Bureau that issued
COASTAL SUBIC BAY V. DOLE (2006) the denial/return of notice. The memorandum of appeal
D: Affiliation gives rise to a relationship of agency, where the together with the complete records of the application for
national union is the agent, and the local one is the principal. registration/notice of change of name, affiliation, merger or
Thus local unions exercise the rights and privileges of a consolidation, shall be transmitted by the Regional Office to
legitimate labor organization, including the right to seek the Bureau or by the Bureau to the Office of the Secretary,
certification as the sole and exclusive bargaining agent. within twenty-four (24) hours from receipt of the
memorandum of appeal. The Bureau or the Office of the
F: CBSTI-RFU and CSBTI-SU filed separate petitions for Secretary shall decide the appeal within twenty (20) days from
certification election before the Med-Arbiter. The rank-and-file receipt of the records of the case.
union insists that it is a legitimate labor organization having
been issued a charter certificate by the ALU, and the PROGRESSIVE DEV. CORP-PIZZA HUT v. LAGUESMA (1997)
supervisory union by the APSOTEU. The Company opposed. D: Local union must first comply with statutory requirements
in order to exercise their right. After a labor organization has
H: RFU and SU cannot obtain the status of legitimate labor filed the necessary papers and documents for registration, it
organizations as long as they are affiliated with their national becomes mandatory for the Bureau of Labor Relations to
unions. There is a common set of officers, creating possible check if the requirements under Art. 234 have been complied
conflict of interest among said officers. with.

b. Action on Application F: NLM-Katipunan filed a petition for certification. Progressive


Dev. Corp. filed multiple motions to dismiss alleging fraud,
LC, Art. 241, supra p. 19 falsification and misrepresentation in the chapter membership
list and the dates of issuance of the charter certification and
LC, Art. 242 - Denial of registration; appeal. The decision of organizational meeting.
the Labor Relations Division in the regional office denying
registration may be appealed by the applicant union to the H: Remanded to Med-Arbiter to look into the allegations of
Bureau within ten (10) days from receipt of notice thereof. fraud and possible cancellation of certificate.

Omnibus Rules, Book V, Rule IV, Sec. 4-7 c. Effect of Registration

Section 4. Action on the application/notice. The Regional Book V, Rule IV, Sec. 8. Effect of registration - The labor union
Office or the Bureau, as the case may be, shall act on all or workers’ association shall be deemed registered and vested
applications for registration or notice of change of name, with legal personality on the date of issuance of its certificate
affiliation, merger and consolidation within ten (10) days from of registration or certificate of creation of chartered local. Such
receipt either by: (a) approving the application and issuing the legal personality may be questioned only through an
certificate of registration/acknowledging the notice/report; or independent petition for cancellation of union registration in
(b) denying the application/notice for failure of the applicant to accordance with Rule XIV of these Rules, and not by way of
comply with the requirements for registration/notice. collateral attack in petition for certification election
proceedings under Rule VIII.
Section 5. Denial of Application/Return of Notice. Where the
documents supporting the application for registration/notice Acquisition of Legal Personality/Statutory Paradigm
of change of name, affiliation, merger and consolidation are
incomplete or do not contain the required certification and LC, Arts. 240 and 240-A, supra p. 19
attestation, the Regional Office or the Bureau shall, within five Book V, Rule III, Sec. 2 (e) as amended, supra p. 21
(5) days from receipt of the application/notice, notify the
applicant/labor organization concerned in writing of the SM MANDAUE PACKAGING v. MANDAUE PACKAGING (2005)
necessary requirements and complete the same within thirty D: Applying D.O. 9, upon compliance with all the documentary
(30) days from receipt of notice. Where the applicant/labor requirements, the Regional Office or Bureau shall issue in
organization concerned fails to complete the requirements favor of the local/chapter a certificate indicating that it is
within the time prescribed, the application for registration shall included in the roster of legitimate labor organizations.
be denied, or the notice of change of name, affiliation, merger
and consolidation returned, without prejudice to filing a new F: Respondent union led a petition for certification election
application or notice. with DOLE, submitting the required documents, including a
Charter Certificate issued by the Federation. It submitted the
Section 6. Form of Denial of Application/Return of Notice; same on to the Bureau of Labor Relations for the creation of a
Appeal. The notice of the Regional Office or the Bureau local chapter. Mandaue asserts that the union was not a
UP LAW C2017 LABOR 2 (PROF. DAWAY) MIDTERMS REVIEWER | 22

legitimate labor organization at the time of filing the Petition based on facts borne on record.
for Certification Election.
F: Dispute between the union and ICTSI on what should be the
H: Union is a legitimate labor organization. Its legal divisor for computing wages. The petitioners (employees)
personality relies partly on that of the national union, which wanted to intervene in the case because they are the ones
was already evaluated and approved by the BLR. who will benefit or suffer from the decision. They were denied.

d. Rights of Legitimate Labor Organization H: petitioners are well-represented by the union. The union
has the right to represent its members according to the LC.
LC, Art. 248 - Rights of legitimate labor organizations.
A legitimate labor organization shall have the right: e. Rights of Workers and Employers Organizations
a. To act as the representative of its members for the
purpose of collective bargaining; MINETTE BAPTISTA v. ROSARIO VILLANUEVA ET AL. (2013)
b. To be certified as the exclusive representative of all the D: Workers’ and employers’ organizations shall have the right
employees in an appropriate bargaining unit for purposes to draw up their constitutions and rules to elect their
of collective bargaining; representatives in full freedom, to organize their
c. To be furnished by the employer, upon written request, administration and activities and to formulate their programs.
with its annual audited financial statements, including the
balance sheet and the profit and loss statement, within F: Union members filed impeachment complaint against the
thirty (30) calendar days from the date of receipt of the union president. The members were expelled from the union
request, after the union has been duly recognized by the and terminated from their employment.
employer or certified as the sole and exclusive bargaining
representative of the employees in the bargaining unit, or H: Company not guilty of ULP. Members violated the
within sixty (60) calendar days before the expiration of the provisions of the union’s constitution and by-laws when they
existing collective bargaining agreement, or during the filed petitions for impeachment against their union officers
collective bargaining negotiation; and for audit before the DOLE without first exhausting all
d. To own property, real or personal, for the use and benefit internal remedies available within their organization.
of the labor organization and its members
e. To sue and be sued in its registered name; and; f. Effect of Non-Registration
f. To undertake all other activities designed to benefit the
organization and its members, including cooperative, • The legal personality of a labor union or workers’
housing, welfare and other projects not contrary to law. association may only be questioned through an
independent petition for cancellation.
Notwithstanding any provision of a general or special law to • It may not be questioned through a collateral attack
the contrary, the income and the properties of legitimate labor in a petition for certification election.
organizations, including grants, endowments, gifts, donations
and contributions they may receive from fraternal and similar
Book V, Rule IV, Sec. 8, supra p. 21
organizations, local or foreign, which are actually, directly and
exclusively used for their lawful purposes, shall be free from
ABARIA v. NLRC (2011)
taxes, duties and other assessments. The exemptions
provided herein may be withdrawn only by a special law D: Not being a labor organization, NAMA is not entitled to
expressly repealing this provision. those rights granted to a legitimate labor organization under
Art. 241, which are: (a.) to act as representative of its
members for the purpose of CB, (b.) to be certified as the
SAN MIGUEL FOODS v. LAGUESMA (1996)
exclusive representative of all the employees in an appropriate
D: A union is an entity separate and distinct from its members
CB unit for purposes of CB.
and officers. It is the right of legitimate labor organizations to
be certified as the exclusive representative of all the
F: Intra-union dispute between NAMA-MCCH-NHL (Nava’s
employees in an appropriate collective bargaining unit for
group are members) and the federation NFL(exclusive
purposes of collective bargaining.
bargaining rep of MCCHI rank-and-file employees) because of
NFL’s decision to disaffiliate with KMU. Nava’s group
F: Union filed a petition for certification with the Med-Arbiter. submitted CB proposals to the company, demanding it
San Miguel opposed this, saying that there was a previous negotiate with them directly. Because of this, the company
application involving the same party, issues, and relief. Union suspended collection of union fees. The union also suspended
replied that the first application was denied for failure to meet the membership of Nava’s group. Nava’s group wore red
one of the requirements (the charter certificate), as at the time armbands to work, which were taken by MCCHI as a strike.
it was filed, there were two contending sets of officers, and DOLE issued certifications that NAMA is not registered, thus
that an application can be filed again as soon as that is met. not a legitimate labor organization. Thus, their Notice to Strike
was deemed not filed. They staged a strike that led to the
H: Second petition for certification is valid. Union acquires termination of Nava and the other union members.
personality upon issuance of the certificate of registration.
H: MCCHI is not guilty of unfair labor practices when it refused
ACEDERA v. INTERNATIONAL CONTAINER to negotiate with Nava’s group. Only legitimate labor
TERMINAL SERVICES (2003) organizations may enter into CB negotiations, file Notice to
D: For a member of a class to be permitted to intervene in a Strike and avail of other rights under LC. The strike was illegal,
representative action, fraud or collusion or lack of good faith hence their dismissals were valid.
on the part of the representative must be proven. It must be
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2. Cancellation of Union Certificate of Registration further, That an application to cancel registration is thereafter
submitted by the board of the organization, attested to by the
Grounds for cancellation: president thereof.
a) Misrepresentation, false statement or fraud (MFSF) in
adoption or ratification of the CBL or amendments LC, Art. 247 (j), last two paragraphs. Every income or revenue
thereto, the minutes of ratification, and the list of of the organization shall be evidenced by a record showing its
members who took part in the ratification; source, and every expenditure of its funds shall be evidenced
b) MFSF - election of officers, minutes of the election of by a receipt from the person to whom the payment is made,
officers, and the list of voters; which shall state the date, place and purpose of such
c) Voluntary dissolution by the members. payment. Such record or receipt shall form part of the financial
records of the organization. Any action involving the funds of
The certificate of registration may be cancelled by the Bureau the organization shall prescribe after three (3) years from the
after due hearing, based only on the aforementioned grounds. date of submission of the annual financial report to the
Department of Labor and Employment or from the date the
A petition for cancellation of a union registration does not same should have been submitted as required by law,
suspend the proceedings for certification election. It also does whichever comes earlier: Provided, That this provision shall
not prevent the filing of a petition for certification election. apply only to a legitimate labor organization which has
submitted the financial report requirements under this Code:
The registration of a legitimate labor organization may be Provided, further, that failure of any labor organization to
cancelled by the organization itself. comply with the periodic financial reports required by law and
• At least 2/3 of its general membership must vote, in a such rules and regulations promulgated there under six (6)
meeting duly called for that purpose months after the effectivity of this Act shall automatically
• An application to cancel must then be submitted by result in the cancellation of union registration of such labor
the board of the organization organization;

Failure to submit reportorial requirements shall not be a LC Art. 248-A. Reportorial Requirements – The following are
ground for cancellation of union registration but shall subject documents required to be submitted to the Bureau by the
the erring officers or members to suspension, expulsion from legitimate labor organization concerned:
membership, or any appropriate penalty. (a) Its constitution and by-laws, or amendments thereto, the
minutes of ratification, and the list of members who took
Failure of any labor organization to comply with the periodic part in the ratification of the constitution and by-laws
financial reports six (6) months after the effectivity of RA 6715 within thirty (30) days from adoption or ratification of the
shall automatically result in the cancellation of union constitution and by-laws or amendments thereto;
registration of such labor organization. (b) Its list of officers, minutes of the election of officers, and
list of voters within thirty (30) days from election;
LC, Art. 244. Cancellation of Registration – The certificate of (c) Its annual financial report within thirty (30) days after the
registration of any legitimate labor organization, whether close of every fiscal year; and
national or local, may be cancelled by the Bureau, after due (d) Its list of members at least once a year or whenever
hearing, only on the grounds specified in Article 239 hereof. required by the Bureau.

LC Art. 244-A. Effect of a Petition for Cancellation of Failure to comply with the above requirements shall not be a
Registration – A petition for cancellation of union registration ground for cancellation of union registration but shall subject
shall not suspend the proceedings for certification election nor the erring officers or members to suspension, expulsion from
shall it prevent the filing of a petition for certification election. membership, or any appropriate penalty.
In case of cancellation, nothing herein shall restrict the right of
the union to seek just and equitable remedies in the LC Art. 251-A. Effect of Inclusion as Members of Employees
appropriate courts Outside the Bargaining Unit – The inclusion as union members
of employees outside the bargaining unit shall not be a ground
LC, Art. 245. Grounds for Cancellation of Union Registration – for the cancellation of the registration of the union. Said
The following may constitute grounds for cancellation of union employees are automatically deemed removed from the list of
registration: membership of said union.
(a) Misrepresentation, false statement or fraud in connection
with the adoption or ratification of the constitution and Book V, Rule I, Sec. 1(g), "Cancellation Proceedings" refer to
by-laws or amendments thereto, the minutes of the legal process leading to the revocation of the legitimate
ratification, and the list of members who took part in the status of a union or workers' association.
ratification;
(b) Misrepresentation, false statements or fraud in Omnibus Rules, Book V, Rule XIV – Cancellation of
connection with the election of officers, minutes of the Registration of Labor Organizations
election of officers, and the list of voters NOTE: This rule should be reconciled with the amendments
(c) voluntary dissolution by the members introduced by RA 9841, which limits the grounds for
cancellation to the 3 mentioned above (p. 23).
LC, Art. 245-A. Voluntary Cancellation of Registration – The
registration of a legitimate labor organization may be Section 1. Where to file. - Subject to the requirements of
cancelled by the organization itself. Provided, That at least notice and due process, the registration of any legitimate
two-thirds of its general membership votes, in a meeting duly independent labor union, chartered local and workers'
called for that purpose to dissolve the organization: Provided, association may be cancelled by the Regional Director, or in
UP LAW C2017 LABOR 2 (PROF. DAWAY) MIDTERMS REVIEWER | 24

the case of federations, national or industry unions and trade F: PIGLAS filed for certification election, which was opposed
union centers, by the Bureau Director, upon the filing of an by Heritage Hotel on the grounds that the documents
independent complaint or petition for cancellation. submitted bore false information and that the union was
merely an alter ego of the old union, enjoined from holding a
Section 2. Who may file. - Any party-in-interest may certification election.
commence a petition for cancellation of registration, except in
actions involving violations of Article 241, which can only be H: Petition for cancellation denied. The discrepancies in
commenced by members of the labor organization concerned. PIGLAS’s documents (roll call growing from 90 to 128,
difference between signatures in attendance sheet and
Section 3. Grounds for cancellation. - The following shall number of those approving constitution and by-laws) could be
constitute grounds for cancellation of registration of labor clearly explained.
organizations:
(a) misrepresentation, false statement or fraud in connection HERITAGE HOTEL v. NUWHRAIN (2011)
with the adoption or ratification of the constitution and D: The protection of the constitutional rights of workers to
by-laws or amendments thereto, the minutes of self-organization and collective bargaining must be protected,
ratification, the list of members who took part in the and that cancellation of said certificate must only be as a last
ratification of the constitution and by-laws or resort.
amendments thereto, the minutes of ratification, the list of
members who took part in the ratification; F: NUWHRAIN’s petition for certification election to become
(b) failure to submit the documents mentioned in the the exclusive bargaining agent for the Heritage Hotel Manila’s
preceding paragraph within thirty (30) days from adoption supervisory employees was granted. While the pre-election
or ratification of the constitution and by-laws or conference was pending, Heritage filed a petition to have its
amendments thereto; union certificate of registration cancelled because NUWHRAIN
(c) misrepresentation, false statements or fraud in failed to submit annual financial reports and lists of its
connection with the election of officers, minutes of the members to the Bureau of Labor Relations.
election of officers, the list of voters, failure to submit
these documents together with the list of the newly H: Denied Heritage’s petition. NUWHRAIN substantially
elected or appointed officers and their postal address complied when it later submitted said reports.
within thirty (30) days from election;
(d) failure to submit the annual financial report to the Bureau
a. Grounds
within thirty (30) days after the close of every fiscal year
and misrepresentation, false entries or fraud in the
Labor Code, Art. 245, supra p. 23
preparation of the financial report;
(e) acting as a labor contractor or engaging in the "cabo"
system, or otherwise engaging in any activity prohibited • Allegation of fraud, false statements or misrepresentation
by law; must be serious because if cancelled, labor organization
(f) entering into collective bargaining agreements which would lose all their rights.
provide for terms and conditions of employment below • Registration is the act that converts a labor organization
minimum standards established by law; to a legitimate labor organization while cancellation is the
(g) commission of any of the acts enumerated under Article government’s act that divests the organization of that
241 of the Labor Code; provided that no petition for status.
cancellation based on this ground may be granted unless
supported by at least thirty (30%) percent of all the 4 REQUISITES to be met if cancellation through VOLUNTARY
members of the respondent labor organization; DISSOLUTION
(h) asking for or accepting attorney's fees or negotiation fees 1) Members’ desire to dissolve should have been voted
from the employer; through secret balloting
(i) other than for mandatory activities under the Labor Code, 2) Balloting should take place in a meeting duly called for the
checking off special assessments or any other fees purpose of deciding whether or not to dissolve the union
without duly signed individual written authorizations of 3) Vote to dissolve should represent two-thirds affirmative
the members; vote of the general membership.
(j) failure to submit list of individual members to the Bureau 4) Application for cancellation passed and submitted by the
once a year or whenever required by the Bureau; union’s governing board.
(k) failure to comply with the requirements of registration
prescribed under Rules III and IV. TAKATA CORP (PHIL) v. BLR & SALAMAT (2014)
D: The 20% minimum requirement pertains to the employees’
Section 4. Action on the petition. - The petition shall be membership in the union and not to the list of workers who
resolved by the Regional Director in accordance with Rule XI, participated in the organizational meeting. Article 240 (b) and
unless the petition is based on paragraphs (d) and (j) of the (c) provide for separate requirements, which must be
foregoing section or non-compliance with the labor submitted for the union's registration. For fraud and
organization's reportorial obligations, in which case the misrepresentation to be grounds for cancellation of union
petition shall be acted upon pursuant to the following Rule. registration under Article 245 of the Labor Code, the nature of
the fraud and misrepresentation must be grave and
HERITAGE HOTEL MANILA v. PIGLAS-HERITAGE (2009) compelling enough to vitiate the consent of a majority of
D: Charge of fraud and misrepresentation by a labor union union members.
must be clearly established by evidence and surrounding
circumstances. F: Takata Corp. filed with DOLE to cancel the certificate of
UP LAW C2017 LABOR 2 (PROF. DAWAY) MIDTERMS REVIEWER | 25

union registration of SALAMAT (Union) due to their membership;


misrepresentation, false statements, and fraud. Takata claims
that only 68 of the 119 e.) No labor organization shall knowingly admit as members
members attended the organizational meeting; less than 20% or continue in membership any individual who belongs to a
of 369 employees. subversive organization or who is engaged directly or
indirectly in any subversive activity;
H: 20% requirement does not apply to Art 234 (b) or to those
who joined the org. meeting. 20% only applies to 234 (c) or all f.) No person who has been convicted of a crime involving
employees in the bargaining unit. The “Pangalan ng mga moral turpitude shall be eligible for election as a union officer
Kasapi ng Unyon” showed 119 names; more than 20% of 396. or for appointment to any position in the union;
No proof that members did not understand what they were
signing. The two repeated names is not a valid ground for g.) No officer, agent or member of a labor organization shall
cancellation because they do not constitute grave collect any fees, dues, or other contributions in its behalf or
misrepresentation. make any disbursement of its money or funds unless he is
duly authorized pursuant to its constitution and by-laws;
E. International Activities of Union –
Prohibition and Regulation h.) Every payment of fees, dues or other contributions by a
member shall be evidenced by a receipt signed by the officer
Art. 275. Prohibition against aliens; exceptions, supra p. 11 or agent making the collection and entered into the record of
the organization to be kept and maintained for the purpose;
Art. 276. Regulation of foreign assistance, supra p. 11
i.) The funds of the organization shall not be applied for any
Art. 277. Applicability to farm tenants and rural workers. The purpose or object other than those expressly provided by its
provisions of this Title pertaining to foreign organizations and constitution and by-laws or those expressly authorized by
activities shall be deemed applicable likewise to all written resolution adopted by the majority of the members at a
organizations of farm tenants, rural workers, and the like: general meeting duly called for the purpose;
Provided, That in appropriate cases, the Secretary of Agrarian
Reform shall exercise the powers and responsibilities vested j.) Every income or revenue of the organization shall be
by this Title in the Secretary of Labor. evidenced by a record showing its source, and every
expenditure of its funds shall be evidenced by a receipt from
F. Union – Member Relations the person to whom the payment is made, which shall state
the date, place and purpose of such payment. Such record or
LC, Art. 247. Rights and conditions of membership in a labor receipt shall form part of the financial records of the
organization. – The following are the rights and conditions of organization.
membership in a labor organization:
Any action involving the funds of the organization shall
a.) No arbitrary or excessive initiation fees shall be required of prescribe after three (3) years from the date of submission of
the members of a legitimate labor organization nor shall the annual financial report to the Department of Labor and
arbitrary, excessive or oppressive fine and forfeiture be Employment or from the date the same should have been
imposed; submitted as required by law, whichever comes earlier:
Provided, That this provision shall apply only to a legitimate
b.) The members shall be entitled to full and detailed reports labor organization which has submitted the financial report
from their officers and representatives of all financial requirements under this Code: Provided, further, that failure of
transactions as provided for in the constitution and by-laws of any labor organization to comply with the periodic financial
the organization; reports required by law and such rules and regulations
promulgated thereunder six (6) months after the effectivity of
c.) The members shall directly elect their officers, including this Act shall automatically result in the cancellation of union
those of the national union or federation, to which they or their registration of such labor organization;
union is affiliated, by secret ballot at intervals of five (5) years.
No qualification requirements for candidacy to any position k.) The officers of any labor organization shall not be paid any
shall be imposed other than membership in good standing in compensation other than the salaries and expenses due to
subject labor organization. The secretary or any other their positions as specifically provided for in its constitution
responsible union officer shall furnish the Secretary of Labor and by-laws, or in a written resolution duly authorized by a
and Employment with a list of the newly-elected officers, majority of all the members at a general membership meeting
together with the appointive officers or agents who are duly called for the purpose. The minutes of the meeting and
entrusted with the handling of funds, within thirty (30) the list of participants and ballots cast shall be subject to
calendar days after the election of officers or from the inspection by the Secretary of Labor or his duly authorized
occurrence of any change in the list of officers of the labor representatives. Any irregularities in the approval of the
organization; resolutions shall be a ground for impeachment or expulsion
from the organization;
d.) The members shall determine by secret ballot, after due
deliberation, any question of major policy affecting the entire l.) The treasurer of any labor organization and every officer
membership of the organization, unless the nature of the thereof who is responsible for the account of such
organization or force majeure renders such secret ballot organization or for the collection, management, disbursement,
impractical, in which case, the board of directors of the custody or control of the funds, moneys and other properties
organization may make the decision in behalf of the general of the organization, shall render to the organization and to its
UP LAW C2017 LABOR 2 (PROF. DAWAY) MIDTERMS REVIEWER | 26

members a true and correct account of all moneys received to the acquisition or retention of membership.
and paid by him since he assumed office or since the last day
on which he rendered such account, and of all bonds, UST FACULTY UNION v. BITONIO (1999)
securities and other properties of the organization entrusted D: The Union’s CBL is the fundamental law that governs the
to his custody or under his control. The rendering of such relationship between and among the members of the union. It
account shall be made: is where the rights, duties and obligations, powers, functions
1) At least once a year within thirty (30) days after the close and authority of the officers as well as the members are
of its fiscal year; defined. It is the organic law that determines the validity of
2) At such other times as may be required by a resolution of acts done by any officer or member of the union. Without
the majority of the members of the organization; and respect for the CBL, a union as a democratic institution
3) Upon vacating his office. degenerates into nothing more than a group of individuals
governed by mob rule.
The account shall be duly audited and verified by affidavit and
a copy thereof shall be furnished the Secretary of Labor. F: A union election of USTFU officers was held during a
general assembly convened and participated in by non-USTFU
m.) The books of accounts and other records of the financial members (faculty members and even members of UST
activities of any labor organization shall be open to inspection management).
by any officer or member thereof during office hours;
H: Election is void for having been conducted in violation of
n.) No special assessment or other extraordinary fees may be the union’s Constitution and Bylaws (CBL), which is the
levied upon the members of a labor organization unless covenant the governs the relations between and among
authorized by a written resolution of a majority of all the members of the union. The collective bargaining unit of all
members in a general membership meeting duly called for the faculty members in that general assembly had no right to
purpose. The secretary of the organization shall record the suspend the provision of USTFU’s CBL.
minutes of the meeting including the list of all members
present, the votes cast, the purpose of the special assessment UST v. SAMAHANG MANGGAGAWA NG UST (2009)
or fees and the recipient of such assessment or fees. The
D: As individual components of a union possessed of a
record shall be attested to by the president.
distinct and separate corporate personality, union members
should realize that in joining the organization, they have
o.) Other than for mandatory activities under the Code, no
surrendered a portion of their individual freedom for the
special assessments, attorney’s fees, negotiation fees or any
benefit of all the other members; they submit to the will of the
other extraordinary fees may be checked off from any amount
majority of the members in order that they may derive the
due to an employee without an individual written authorization
advantages to be gained from concerted action all. Will of the
duly signed by the employee. The authorization should
members is personified by its board of directors or trustees,
specifically state the amount, purpose and beneficiary of the
and its decisions accordingly bind them
deduction; and
F: Conflict between UST and union UST (SM-UST) ensued
p.) It shall be the duty of any labor organization and its
regarding economic provisions in the CBA, so the Secretary of
officers to inform its members on the provisions of its
DOLE issued an order containing a “reasonable resolution”
constitution and by-laws, collective bargaining agreement, the
which is not in accordance with union’s demands. There is an
prevailing labor relations system and all their rights and
issue of whether or not individual acceptance of 572 out of the
obligations under existing labor laws.
619 union members of the monetary award could be
considered ratification of the DOLE Secretary’s order.
For this purpose, registered labor organizations may assess
reasonable dues to finance labor relations seminars and other
H: The acceptance did not operate as a ratification nor a
labor education activities.
waiver of their right to receive further benefits, or what they
may be entitled to The members were merely constrained to
Any violation of the above rights and conditions of
accept payment at the time. Christmas was then just around
membership shall be a ground for cancellation of union
the corner.
registration or expulsion of officers from office, whichever is
appropriate. At least thirty percent (30%) of the members of a
union or any member or members specially concerned may 1. Admission and Discipline of Members
report such violation to the Bureau. The Bureau shall have the
power to hear and decide any reported violation to mete the LC, Art 255(a), supra
appropriate penalty. LC, Art 247 (a), (e) supra p. 25
LC, Art 283. Miscellaneous provisions.
Criminal and civil liabilities arising from violations of above (a) All unions are authorized to collect reasonable
rights and conditions of membership shall continue to be membership fees, union dues, assessments and fines and
under the jurisdiction of ordinary courts. other contributions for labor education and research,
mutual death and hospitalization benefits, welfare fund,
LC, Art. 255. Unfair labor practices of labor organizations. – It strike fund and credit and cooperative undertakings.
shall be unfair labor practice for a labor organization, its
officers, agents or representatives: (c) Any employee, whether employed for a definite period or
(a) To restrain or coerce employees in the exercise of their not, shall, beginning on his first day of service, be
right to self-organization. However, a labor organization considered as an employee for purposes of membership
shall have the right to prescribe its own rules with respect in any labor union.
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VILLAR v. INCIONG (1983) 2. Election of Officers


D: A closed-shop is a valid form of union security, and a
provision therefor in a collective bargaining agreement is not a Art. 247 (c) (f) (k), supra p. 25
restriction of the right of freedom of association guaranteed
by the Constitution. Where in a closed-shop agreement it is Omnibus Rules Book V, Rule XII
stipulated that union members who cease to be in good ELECTION OF OFFICERS OF LABOR UNIONS AND WORKERS
standing shall immediately be dismissed, such dismissal does ASSOCIATIONS
not constitute an unfair labor practice Section 1. Conduct of Election of Union Officers; Procedure in
the Absence of Provisions in the Constitution and By-Laws
F: Petitioners disaffiliated themselves from the existing In the absence of any agreement among the members or any
bargaining agent in Amigo; they were then found guilty of acts provision in the constitution and by-laws of a labor union or
prejudicial and inimical to the interests of the Amigo workers’ association, the following guidelines may be adopted
Employees Union- PAFLU. Pursuant to a security clause the in the election of officers:
union demanded the petitioners’ termination from the (a) Within sixty (60) days before the expiration of the term of
company, which the company granted. the incumbent officers, the president of the labor
organization shall constitute a committee on election to
H: The Court upheld the legality of their termination.
be composed of at least three (3) members who are not
running for any position in the election, provided that if
SALUNGA v. CIR (1967) there are identifiable parties within the labor organization,
D: Generally, a state may not compel ordinary voluntary each party shall have equal representation in the
associations to admit any given individual, because committee;
membership may be accorded or withheld as a matter if (b) Upon constitution, the members shall elect the chairman
privilege, BUT the rule is qualified in respect of labor unions or of the committee from among themselves, and in case of
as regards a particular employer with which it has a closed- disagreement, the president shall designate the chairman;
shop agreement. The closed shop and the union shop cause (c) Within ten (10) days from its constitution, the committee
the admission requirements of trade unions to become shall, among others, exercise the following powers and
affected with the public interest. Unions are not entitled to duties:
arbitrarily exclude qualified applicants for membership, and a 1. Set the date, time and venue of the election;
closed-shop provision would not justify the employer in 2. Prescribe the rules on the qualification and eligibility
discharging, or a union in insisting upon the discharge of, an of candidates and voters;
employee whom the union thus refuses to admit to 3. Prepare and post the voters’ list and the list of
membership, without any reasonable ground qualified candidates;
4. Accredit the authorized representatives of the
F: Salunga wanted to resign from PAFLU, but after learning contending parties;
that resignation from PAFLU would equate to removal from 5. Supervise the actual conduct of the election and
employment (pursuant to the CBA); he wanted to withdraw canvass the votes to ensure the sanctity of the ballot;
such resignation. PAFLU refused and he was terminated by 6. Keep minutes of the proceedings;
the company as insisted by theu union. Salunga filed an unfair 7. Be the final arbiter of all election protests;
labor practices case in the CIR. 8. Proclaim the winners; and
9. Prescribe such other rules as may facilitate the
H: Salunga’s termination is unfair labor practice. Salunga is orderly conduct of election
entitled to reinstatement.
Section 2. Dispute Over Conduct of Election of Officers –
Due Process Where the terms of the officers of a labor organization have
expired and its officers failed or neglected to do so call for an
BUGAY v. KAPISANAN NG MGA MANGGAGAWA SA MRR election of new officers, or where the labor organization’s
(1962) constitution and by-laws do not provide for the manner by
D: Not being given an opportunity to defend oneself and an which the said election can be called or conducted and the
expulsion which was not submitted to the different chapters intervention of the Department is necessary, at least thirty
of the union as required by its constitution and by-laws which (30%) of the members of the labor organization may file a
subjected a person to humiliation and mental anguish with the petition for the conduct of election of their officers within the
consequent loss of good name and reputation is a sufficient Regional Office that issued its certificate of registration or
cause of action for relief of damages. certificate of creation of chartered local.

F: Bugay was charged with disloyalty and conduct In the case of federations, national or industry unions and
unbecoming of a union member and was later expelled from trade union centers, the petition shall be filed with the Bureau
the union. Bugay then filed against the Kapisanan before CIR or the Regional Office but shall be heard and resolved by the
an action for moral damages arising out of ULP allegedly Bureau.
committed by the union. CIR found the union guilty as charged
due to the irregularity of the proceedings conducted. Bugay This rule shall also apply where a conduct of election of
files an action to recover moral damages against the union officers is an alternative relief or necessary consequence of a
before CFI Manila. CFI dismissed the action due to insufficient petition for nullification of election of officers,
cause of action. impeachment/expulsion of officers, or such other petitions.

H: SC reversed the ruling and remanded the case for further Section 3. Formal Requirement and Proceedings – The formal
proceedings. requirements, processes and periods of disposition of this
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petition stated in Rule XI shall be followed in the Art. 247 (c), supra p. 25
determination of the merits of the petition and appeal.
d. Compensation
Section 4. Pre-election Conference and Conduct of Election – Art. 247. (k) supra p. 25
The appointment of an election officer and the procedures and
periods in the conduct of the pre-election conference and e. Who may vote
election proceedings prescribed in Rule IX shall also apply in Art. 247 (c) supra p. 25
the conduct of a pre-election conference and election of Only members of the union can take part in the election of
officers in any labor organization. union officers.

Section 5. Applicability of the Provisions of the Labor MANALAD v. TRAJANO (1989)


Organization’s Constitution and By-Laws – Where the D: The mere fact that a group obtained the second highest
conduct of election of officers is ordered by the Med-Arbiter, number of votes does not mean that they will thereby be
the Bureau or Office of the Secretary, the rules and regulations considered as the elected officers if the true winners are
governing the filing of candidacies and conduct of election disqualified.
under the constitution and by-laws of the labor organization
may be applied in the implementation of the decision, or new F: Petitioners sought the disqualification of their rival group
and additional rules may be adopted as agreed upon by the from the union's elections; and that they also be cited in
parties. contempt for disregarding an earlier SC resolution.

The entire proceedings shall be presided by the Election H: SC dismissed the case for being moot and academic (the
Officer from the Labor Relations Division of the Regional rival group's term had already expired).
Office or the Bureau. He/She shall act as the COMELEC
referred to in the labor organization’s constitution and by- TANCINCO v. CALLEJA (1988)
laws and obligate himself/herself to comply with his/her
D: Submission of the employees’ names with the BLR as
mandate under the decision to be implemented and the qualified union members is not an indispensable condition to
constitution and by-laws. enable them to vote in the election, and that eligibility to vote
may be determined through the use of the applicable payroll
a. Qualifications/ Disqualification period and employee's status during the applicable payroll
period.
Art 247 (c), (f) supra p. 25
- No qualification requirements for candidacy to any F: ANGLO excluded 56 employees from the list of voters which
position other than membership in good standing in Tancinco et al protested. Director Calleja excluded 51 from
the labor organization those 56 from the list, but for the reason that their names
- Must not have been convicted of a crime involving didn’t appear in the union records submitted to the Bureau of
moral turpitude Labor.

MONTANO v. VERCELES (2010) H: The SC held that the 56 should be allowed to vote
D: Under Book V, Rule XV, Sec 2 of the Labor Code Omnibus
Rules, the COMELEC (of the union) shall have the power to KAPISANAN v. TRAJANO (1985)
prescribe rules on the qualification and eligibility of
D: If herein union officers were guilty of the alleged acts
candidates and such other rules as may facilitate the orderly
imputed against them, said public respondent pursuant to
conduct of elections. FFW COMELEC has sufficient authority
Article 242 of the New Labor Code and in the light of Our ruling
to adopt its own interpretation of the explicit provisions of the
in Duyag vs. Inciong, should have meted out the appropriate
federation's constitution and by-laws. This, unless it is shown
penalty on them, i.e., to expel them from the Union, as prayed
to have committed grave abuse of discretion, its decision and
for, and not call for a referendum to decide the issue.
ruling will not be interfered with.
F: Some KMP members wanted to have their union officers
F: Atty. Montaño, union president and federation employee,
expelled after an investigation by union examiner found
was elected as FFW National Vice President. His candidacy
anomalies showing non-compliance with union rules. Med-
was assailed for violation of the CBL which prohibits
arbiter ordered that a referendum be made so that the union
federation employees from sitting in its Governing Board. The
itself may vote if the officers should be suspended or expelled.
FFW Constitution is clear that no member of the Governing
Board shall at the same time perform functions of the rank-
H: The Court held that the order was invalid MA should have
and-file staff.
meted out the appropriate penalty on them such as expulsion
and not call for a referendum to decide the issue. But issue
H: Montano is disqualified to run for the position of National
rendered moot and academic because of the re-election of the
Vice-President in view of such proscription. His election as
officers.
FFW Vice-President is null and void.
F. Shop Steward
b. Manner of Election
Art. 247 (c), supra p. 25
MIRANDA JR. v. ASIAN TERMINALS, INC (2009)
The union officers are elected directly by the members in
secret ballot voting, D: Nature of being a Shop Steward: Union position, not a
company position. Therefore, the case at bar is an intra-
c. Tenure corporate dispute to be resolved under the Med-Arbiter and
UP LAW C2017 LABOR 2 (PROF. DAWAY) MIDTERMS REVIEWER | 29

the CBA. enforce his Attorney’s lien from the said transaction. All the
aforementioned acts are by virtue of the retainer’s contract he
F: Teodorico S. Miranda, Jr. was employed by ATI as a had with the union.
Checker and assigned as the Shop Steward by union. He was
recalled from said position due to lack of trust and confidence H: The Court held that the contract was anomalous as it was
(absenteeism). He filed a case where the Med-Arbiter ruled in not a contract with the general membership for being violative
favor of him and ordered his reinstatement. Company of Art. 247 (d) of the Labor Code. The contract was executed
questioned this, claiming that this is an intra-corporate only between Atty. Pineda and the officers of the Union
dispute. chosen by about 125 members only. It was not a contract with
the general membership. Only 14% of the total membership of
H: The correct decision of the Med-Arbiter for Miranda to be 897 was represented.
reinstated can’t be enforced since
he was already retrenched and he signed quitclaims and ABARIA v. NLRC (2011) supra p. 22
waivers. D: NAMA is not the labor organization certified or designated
by the majority of the rank-and-file hospital employees to
STA. ROSA COCA-COLA PLANT EMPLOYEES UNION v. CCBP represent them in the CBA negotiations. While it is true that a
(2007) local union has the right to disaffiliate from the national
D: Shop steward is appointed by the Union and serves as federation, NAMA has not done so as there was no any effort
representative of the Union, charged with negotiating and on its part to comply with the legal requisites for a valid
adjustment of grievances of employees with the supervisor of disaffiliation during the “freedom period” or the last 60 days of
the employer. He is the representative of the Union members the last year of the CBA, through a majority vote in a secret
in a building or other workplace. His duties include the balloting in accordance with Art. 241 (d).
conduct of initial negotiations for settlement of grievances. He
is to help other members when they have concerns with the 4. Union Funds
employer or other work-related issues. He is the first person
that workers turn to for assistance or information. If someone LC, Art. 247 (a) (b) (c) (g) (h) (i) (j) (k) (l) (m) (n) (o), supra pp.
has a problem at work, the steward will help them sort it out 25-26
or, if necessary, help them file a complaint. In the performance
of his duties, he has to take cognizance of and resolve, in the LC, Art. 280 Visitorial power. The Secretary of Labor and
first instance, the grievances of the members of the Union. Employment or his duly authorized representative is hereby
empowered to inquire into the financial activities of legitimate
F: Union staged an illegal strike. Petitioners who were shop labor organizations upon the filing of a complaint under oath
stewards participated and was subsequently terminated. They and duly supported by the written consent of at least twenty
assail such termination alleging that they are mere members percent (20%) of the total membership of the labor
and not officers. organization concerned and to examine their books of
accounts and other records to determine compliance or non-
H: The petitioners are shop stewards, and validly dismissed. compliance with the law and to prosecute any violations of the
“Instead of playing the role of ‘peacemakers’ and grievance law and the union constitution and by-laws: Provided, That
solvers, they stewards participated in the strike. Thus, like the such inquiry or examination shall not be conducted during the
officers and directors of petitioner Union who joined the strike, sixty (60)-day freedom period nor within the thirty (30) days
petitioners-shop stewards also deserve the penalty of immediately preceding the date of election of union officials.
dismissal from their employment.”
Book V, Rule XIII
3. Major Policy Matter RULE XIII ADMINISTRATION OF TRADE UNION FUNDS AND
Art. 247 (d), supra p. 25 ACTIONS ARISING THEREFROM
In Art 247, general membership action is required in the
following: 247 (d) (i) (k) (n) and voluntary dissolution Section 1. Right of union to collect dues and agency fees. -
The incumbent bargaining agent shall continue to be entitled
Issues requiring a majority of members: to check-off and collect dues and agency fees despite the
1. Major policy matter pendency of a representation case, other inter/intra-union
2. Use of organization funds disputes or related labor relations disputes.
3. Compensation of union officers
4. Voluntary dissolution decided by 2/3 of general membership Section 2. Visitorial power under Article 274. - The Regional or
5. Special assessment or extraordinary fees Bureau Director may inquire into the financial activities of any
legitimate labor organization and examine their books of
HALILI v. CIR (1985) accounts and other records to determine compliance with the
D: Union members shall determine by secret ballot, after due law and the organization's constitution and by-laws. Such
deliberation, any question of major policy affecting the entire examination shall be made upon the filing of a request or
membership of the organization. If secret ballot cannot be complaint for the conduct of an accounts examination by any
done,the board of directors of the organization may make the member of the labor organization, supported by the written
decision in behalf of the general membership. consent of at least twenty (20%) percent of its total
membership.
F: Atty. Pineda sold a parcel of land belonging to the Union he
‘represents’. Atty. Pineda also Section 3. Where to file. - A request for examination of books
sought the distribution of the proceeds of the sale to the of accounts of independent labor unions, chartered locals and
Union members as well as tried to workers associations pursuant to Article 274 shall be filed
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with the Regional Office that issued its certificate of constitution and by-laws, relevant resolutions of the
registration or certificate of creation of chartered local. union and the Labor Code;
(c) trace recording and posting in the disbursement book;
A request for examination of books of accounts of federations (d) record observations or findings of all financial
or national unions and trade union centers pursuant to Article transactions.
274 shall be filed with the Bureau. Such request or complaint, Where no book of accounts are maintained by the officers of
in the absence of allegations pertaining to a violation of Article the labor organization, the Audit Examiner shall:
241, shall not be treated as an intra-union dispute and the (a) examine the transactions reflected in the disbursement
appointment of an Audit Examiner by the Regional or Bureau vouchers;
Director shall not be appealable. (b) determine the validity of the supporting documents
attached to the vouchers consistent with the labor
Section 4. Actions arising from Article 241. - Any complaint or organization's constitution and by-laws, relevant board
petition with allegations of mishandling, misappropriation or resolutions, and the Labor Code;
non-accounting of funds in violation of Article 241 shall be (c) prepare working papers or worksheet/s;
treated as an intra-union dispute. It shall be heard and (d) record and post all financial transactions reflected in the
resolved by the Med-Arbiter pursuant to the provisions of Rule cash vouchers in the working papers or worksheet/s; and
XI. (e) record observations or findings of all financial
transactions.
Section 5. Prescription. - The complaint or petition for audit or The Audit Examiner shall conduct an inventory of all physical
examination of funds and book of accounts shall prescribe assets acquired by the labor organization, if any, and on the
within three (3) years from the date of submission of the basis of his/her findings prepare his/her audited financial
annual financial report to the Department or from the date the report or statement reflecting the true and correct financial
same should have been submitted as required by law, accounts and balances of the labor organization with relevant
whichever comes earlier. annexes attached.

Section 6. Decision. - A decision granting the conduct of audit Section 10. Period of audit. - The Audit Examiner shall have
shall include the appointment of the Audit Examiner and a sixty (60) days from the date of first pre- audit conference
directive upon him/her to submit his/her report and within which to complete the conduct of audit, unless the
recommendations within ten (10) days from termination of volume of financial records, the period covered by the audit
audit. The decision granting the conduct of audit is and other circumstances warrant the extension thereof. In
interlocutory and shall not be appealable. The decision such a case, the Audit Examiner shall notify the Med-Arbiter or
denying or dismissing the complaint or petition for audit may the Bureau Director, as the case may be, of such fact at least
be appealed within ten (10) days from receipt thereof pursuant ten (10) days before the expiration of the sixty (60) day period.
to the provisions prescribed in Rule XI.
Section 11. Audit Report. - The Audit Examiner shall make a
Section 7. Pre-audit conference. - Within twenty-four (24) report of his/her findings to the parties involved and the same
hours from receipt of the decision granting the conduct of shall include the following:
audit, the Regional Director shall summon the parties to a pre- (a) name of the labor organization;
audit conference conducted by the Audit Examiner to (b) name of complainant(s) or petitioner(s) and
determine and obtain the following: (a) sources of funds respondent(s);
covered by the audit; (b) the banks and financial institutions (c) name of officers of the labor organization during the
where the labor organization maintains its account; (c) union period covered by the audit report;
books of accounts and financial statements; (d) disbursement (d) scope of the audit;
vouchers with supporting receipts, invoices and other (e) list of documents examined;
documents; (e) income and revenue receipts; (f) cash books; (f) audit methods and procedures adopted; and
(g) minutes of general membership meeting and board (g) findings and recommendations.
meetings; (h) other relevant matters and documents. The first
pre-audit conference shall be scheduled within ten (10) days Section 12. Completion of audit. - A copy of the audit report
from receipt by the Audit Examiner of the decision granting shall be forwarded by the Audit Examiner to the Med-Arbiter or
the conduct of an audit. the Bureau Director, as the case may be, within ten (10) days
from termination of the audit, together with the entire records
Section 8. Issuance of subpoena. - The Regional Director may of the case and all documents relative to the conduct of the
compel any party to appear or bring the required financial audit.
documents in a conference or hearing through the issuance of
a subpoena ad testificandum or subpoena duces tecum. Section 13. Decision after audit. - The Med-Arbiter or the
He/She may also require the employer concerned to issue Bureau Director shall render a decision within twenty (20)
certifications of union dues and other assessments remitted days from receipt of the audit report. All issues raised by the
to the union during the period of audit. parties during the conduct of the audit shall be resolved by the
Med-Arbiter. The decision shall be released in the same
Section 9. Conduct of audit examination. - Where book of manner prescribed in Section 15, Rule XI.
accounts are submitted by the parties, the Audit Examiner When warranted, the Med-Arbiter or Bureau Director shall
shall: order the restitution of union funds by the responsible
(a) examine the transactions reflected in the disbursement officer(s) in the same decision.
vouchers;
(b) determine the validity of the supporting documents Section 14. Appeal. - Appeal from the decision of the Med-
attached to the vouchers consistent with the union's Arbiter denying the conduct of audit and from the results of
UP LAW C2017 LABOR 2 (PROF. DAWAY) MIDTERMS REVIEWER | 31

the audit may be filed by any of the parties with the Bureau. F: PBC and PABECO had a CBA deadlock. Ministry of Labor
Decisions rendered by the Bureau after the conduct of audit in intervened and decided the terms. Attorney filed MOR. For
the exercise of its original jurisdiction may be appealed to the inaction of the Ministry, Attorney filed memorandum in Office
Office of the Secretary. Both shall be resolved in accordance of the President. Executive Secretary awarded benefits of CBA
with the provisions of Section 16, Rule XI. to employees and authorized the deduction of attorney’s fees
from the benefits awarded with the CBA
Section 15. Period of inquiry or examination. - No complaint
for inquiry or examination of the financial and book of H: SC stated that attorney’s fees cannot be deducted from
accounts as well as other records of any legitimate labor employee’s benefits but only to union funds as stated in
organization shall be entertained during the sixty (60) day Article 228 of the Labor Code.
freedom period or within thirty (30) days immediately
preceding the date of election of union officers. Any complaint KAISAHAN AT KAPATIRAN v. MANILA WATER CO. (2011)
or petition so filed shall be dismissed. D: Art. 111, LC contemplates the extraordinary concept of
attorney’s fees and that it is an exception to the declared
• Dues – payments to meet the union’s general and current policy of strict construction in the award of attorney’s fees.
obligations.
• Assessment – payments used for a special purpose, F: The issue in this case is the effect of the MOA provision that
especially if required only for a limited time attorney’s fees shall be deducted from the AA and CBA
receivables. The more significant issue in this case is the
Payment of Attorney’s Fees effect of the MOA provision that attorney’s fees shall be
LC, Art 228. Appearances and Fees. deducted from the AA and CBA receivables. The attorney’s
(a) Non-lawyers may appear before the Commission or any fees contracted under the MOA do not refer to the amount of
Labor Arbiter only: attorney’s fees awarded by the NLRC; the MOA provision on
1. If they represent themselves; or attorney’s fees does not have any bearing at all to the
2. If they represent their organization or members thereof. attorney’s fees awarded by the NLRC under Art. 111
(b) No attorney’s fees, negotiation fees or similar charges of
any kind arising from any collective bargaining agreement H: The 10% attorney’s fees awarded by the NLRC on the basis
shall be imposed on any individual member of the of Art. 111, LC accrue to the Union’s members as indemnity
contracting union: Provided, However, that attorney’s fees for damages and not to the Union’s counsel as compensation
may be charged against union funds in an amount to be for his legal services, unless, they agreed that the award shall
agreed upon by the parties. Any contract, agreement or be given to their counsel
arrangement of any sort to the contrary shall be null and as additional or part of his compensation
void.
Payment of Special Assessment
LC, Art 111. Attorney’s fees. LC, Art 247 (n), (o), supra p. 26 [in relation to Art 228 (b)]
a. In cases of unlawful withholding of wages, the culpable LC, Art. 228. Appearances and Fees.
party may be assessed attorney’s fees equivalent to ten b. No attorney’s fees, negotiation fees or similar charges of
percent of the amount of wages recovered. any kind arising from any collective bargaining agreement
b. It shall be unlawful for any person to demand or accept, in shall be imposed on any individual member of the contracting
any judicial or administrative proceedings for the recovery of union: Provided, However, that attorney’s fees may be charged
wages, attorney’s fees which exceed ten percent of the against union funds in an amount to be agreed upon by the
amount of wages recovered. parties. Any contract, agreement or arrangement of any sort to
the contrary shall be null and void.
LC, Art 247 (g) (h) (m) (n) (o) supra pp. 25-26
Special assessments – payments for a special purpose,
2 commonly accepted concepts of attorney’s fees: especially if required only for a limited time.
a. Ordinary concept – the reasonable compensation paid to a
lawyer by his client for the legal services the former renders; Requirements for validity of special assessment:
compensation is paid for the cost and/or results of legal 1. Authorization by written resolution of majority of ALL the
services per agreement or as may be assessed. members at the general membership meeting called for
b. Extraordinary concept – the indemnity for damages ordered that purpose
by the court to be paid by the 2. Secretary’s record of the minutes of the meetings attested
losing party to the winning party. to by the president.
• The instances when these (extraordinary concept) may be 3. Individual written authorization for check-off duly signed
awarded are enumerated in Art. 2208, CC, specifically in its by the employees concerned.
par. 7 on actions for recovery of wages, and is payable not to
the lawyer but to the client, unless the client and his lawyer GABRIEL v. SEC OF LABOR (2000)
have agreed that the award shall accrue to the lawyer as
D: Check-off – A process or device whereby the employer, on
additional or part of compensation.
agreement with the Union, recognized as the proper
bargaining representative, or on prior authorization from the
PACIFIC BANKING CORPORATION v. CLAVE (1984) employees, deducts union dues or agency fees from the
D: Art 222 is intended to protect the employee against latter’s wages and remits them directly to the Union.
unwarranted practices that would diminish his compensation
without his knowledge and consent. Payment of attorney’s F: Union resolution provided that 10% of total economic
fees should be deducted from the union funds not from benefits that may be secured in the new CBA to be negotiated
employees’ compensation would go to atty’s fees. Company checked off the atty’s fees
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from the individual salaries of the members, as per their activity” exception provided in Art 247 (o).
agreement.
H: SC held that benefits awarded to PLDT employees still
H: Court held that the 3rd requisite for a valid special formed part of the collective bargaining negotiations although
assessment (refer to requisites above) which is Individual placed under compulsory arbitration. The compulsory
written authorization for check-off duly signed by the arbitration is not the "mandatory activity" under the Code.
employees concerned is lacking, hence it can’t be allowed.
The reimbursement for atty’s fees is to be charged against the 6. Union Information/ Obligation
union general fund.
Art 247 (p), supra p. 26
MARIÑO v. GAMILLA (2009) • Reason for the need to inform members: To
D: The general rule is attorney’s fees, negotiation fees, and EMPOWER general membership
other similar charges may only be collected from union funds,
not from the amounts that pertain to individual union CONTINENTAL CEMENT CORP. LABOR UNION v.
members with the exception of special assessments or other CONTINENTAL CEMENT (1990)
extraordinary fees which may be levied upon or checked off D: Union officers are obliged to guide their members to
from any amount due an employee for as long as there is respect the law. The responsibility of Union officers is greater
proper authorization by the employee. than that of the members.

F: USTFU deducted a Php4.2M (10%) check-off as payment F: NLU staged a strike in violation of the no-strike policy of the
for union dues, special assessment for Labor Education Fund, State. Continental is engaged in the manufacture of cement,
and attorney’s fees from the economic benefits package thus, a vital industry. NLRC dismissed the Union officers and
awarded to union members. suspended the striking Union members.

H: The SC held that it was not a valid check-off because H: Court held that the penalties meted out were proper. Said
express consent is required from the members of the officers urged the members to violate the law and defy the
collective bargaining unit, and this consent must be obtained authorities.
in accordance with the steps outlined by law.
7. Enforcement and Remedies – Procedure Jurisdiction and
5. Mandatory Activity Sanctions
(Note: This must be deemed revised by amendments
Art 247 (o), supra p. 26 introduced by RA No. 9481 [i.e. Art 248-A] May 25, 2007)

VENGCO v. TRAJANO (1989) Art 247, last two paragraphs


D: A mandatory activity has been defined as a judicial process Any violation of the above rights and conditions of
of settling dispute laid down by the law. LC 247 (o) does not membership shall be a ground for cancellation of union
allow deduction from any amount due an employee without registration or expulsion of officers from office, whichever is
authorization except for a mandatory activity. appropriate. At least thirty percent (30%) of the members of a
union or any member or members specially concerned may
F: As part of a compromise agreement between Employeer report such violation to the Bureau. The Bureau shall have the
and Union, Timbungco, as union president, received PHP power to hear and decide any reported violation to mete the
150,000 which he distributed among the union members. appropriate penalty.
Petitioners filed a complaint against Timbungco on the
ground that he was not authorized to deduct 10% from the Criminal and civil liabilities arising from violations of above
PHP150,000 to pay for attorney’s fees. rights and conditions of membership shall continue to be
under the jurisdiction of ordinary courts.
H: The amicable settlement entered into by the management
and the union can’t be considered as a mandatory activity Art. 242-A. Reportorial Requirements. - The following are
under the Code. The case never reached its conclusion in view documents required to be submitted to the Bureau by the
of the parties’ agreement. legitimate labor organization concerned:
(a) Its constitution and by-laws, or amendments thereto, the
GALVADORES v. TRAJANO (1986) minutes of ratification, and the list of members who took
D: Other than for mandatory activities under the Code, no part in the ratification of the constitution and by-laws
special assessment, attorney's fees, negotiation fees or any within thirty (30) days from adoption or ratification of the
other extraordinary fees may be checked off from any amount constitution and by-lam or amendments thereto;
due an employee without individual written authorization duly (b) Its list of officers, minutes of the election of officers, and
signed by the employee. The authorization should specifically list of voters within thirty (30) days from election;
state the amount, purpose and beneficiary of the deduction (c) Its annual financial report within thirty (30) days after the
close of every fiscal year; and
F: Members of Union of PLDT contest the award of P1M to (d) Its list of members at least once a year or whenever
their legal counsel after the negotiations for the CBA because required by the Bureau.
there must be individual written authorization before any Failure to comply with the above requirements shall not be a
assessment may be made against their monetary benefits (Art ground for cancellation of union registration but shall subject
247 LC). PLDT and the counsel argue that the compulsory the erring officers or members to suspension, expulsion from
arbitration during negotiation falls under the “mandatory membership, or any appropriate penalty.
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LC, Art. 280, supra p. 29 - Petition for cancellation of union registration or


application for voluntary dissolution must be
LC, Arts. 294 -295, supra p. 16 filed
- Filed in the regional office which issued its
Book V, Rule XIV (as amended by D.O. 40-F-03, s. 2008), certificate of registration or creation
supra p. 24 - Done by the Regional Director
Expulsion
Book V, Rule XV (as amended by D.O. No. 40-F-03, s. 2008) • The remedy against erring union officers is not
RULE XV REGISTRY OF LABOR ORGANIZATIONS AND referendum but union expulsion.
COLLECTIVE BARGAINING AGREEMENTS • Expulsion of union officers and members must be
done with due process. It must be for a valid cause
Sec. 1. National Registry – The Bureau Shall be the national and by following proper procedure.
registry of labor organizations and collective bargaining
agreements. As such it shall: DUYAG v. INCIONG (1980)
(a) Maintain a national registry; D: Last paragraph of Art. 247 provides that any violation of the
(b) Within the month of March following the end of the rights and conditions of union membership, as enumerated in
calendar year, publish in the Department of Labor and paragraphs (a) to (p) of article 247, "shall be a ground for
Employment website the lists of labor organizations and cancellation of union registration or expulsion of officer from
federations which have complied with the reportorial office, whichever is appropriate. At least thirty percent (30%)
requirements of Rule V and delinquent labor of all the members of a union or any member or members
organizations; specially concerned may report such violation to the Bureau
(c) Publish a list of officers of labor organizations with (of Labor Relations). The Bureau shall have the power to hear
criminal conviction by final judgment; and and decide any reported violation to mete the appropriate
(d) Verify the existence of a registered labor organization penalty"
with no registered collective bargaining agreement and
which has not been complying with the reportorial F: Several charges were filed against respondent union
requirements for at least five years. The verification shall officers due to these, Labor Arbiter ordered their expulsion
observe the following process: from the union. This was reversed as the Director of Labor
Relations argues that removal of the union officers rests with
1. The Regional Office shall make a report of the labor the members.
organization's non- compliance and submit the same to the
Bureau for verification. The Bureau shall send by registered H: Under Art. 247 (second to the last paragraph), Bureau is
mail with return card to the labor organization concerned, a expressly granted the power to mete the appropriate penalty.
notice for compliance indicating the documents it failed to
submit and the corresponding period in which they were 8. Union Leave
required, with notice to comply with the said reportorial
requirements and to submit proof thereof to the Bureau within
MALAYAN EMPLOYEES ASSOCIATION – FFW
ten (10) days from receipt thereof.
v. MALAYAN INSURANCE (2010)
D: The union leave grant cannot be considered separately
Where no response is received by the Bureau within thirty (30)
from the other provisions of the CBA, particularly the provision
days from the service of the first notice, it shall send another
on management prerogatives. There is nothing in the
notice for compliance, with warning that failure on its part to
wordings of the union leave provision that removes from the
comply with the reportorial requirements within the time
company the right to prescribe reasonable rules and
specified shall cause its publication as a non-existing labor
regulations to govern the manner of availing of union leaves,
organization in the DOLE website.
particularly the prerogative to require prior approval.
2. Where no response is received by the Bureau within thirty
F: CBA of the Company and the Union, the company allows
(30) days from service of the second notice, the Bureau shall
publish the notice of non-existence of the labor union officials to avail of union leaves with pay for the
organization/s in the DOLE website. purpose of attending grievance meetings, Labor-Management
Committee meetings, annual National Labor Management
3. Where no response is received by the Bureau within thirty Conferences, labor education programs and seminars, and
(30) days from date of publication, or where the Bureau has other union activities. Eventually, the company issued a rule
requiring prior approval by the department head before
verified the dissolution of the labor organization, it shall delist
availing of the union leave. Mangalino filed for a union leave
the labor organization from the roster of legitimate labor
but was disapproved. Still, Mangalino proceeded to take the
organizations.
union leave. The Company suspended him. The Union
contends that such suspension was invalid.
Sec. 2. Repealing Clause. - All rules, regulations, issuances,
circulars and administrative orders inconsistent herewith are
H: The Court held that the suspension was valid.
repealed or modified accordingly.

Sec. 3. Effectivity. - This Order shall take effect fifteen (15) G. Union Chartering and Affiliation:
days after its publication in a newspaper of general Local and Parent Union Relations
circulation.
Cancellation of Registration: Bk. V, Rule III REGISTRATION OF LABOR ORGANIZATIONS
- There must be notice and due process
SEC. 1. Where to file. - Applications for registration of
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independent labor unions, chartered locals, workers' Labor organizations operating within an identified industry
associations shall be filed with the Regional Office where the may also apply for registration as a federation or national
applicant principally operates. It shall be processed by the union within the specified industry by submitting to the
Labor Relations Division at the Regional Office in accordance Bureau the same set of documents.
with Sections 2-A, 2-C, and 2-E of this Rule.
C. The application for registration of a workers' association
Applications for registration of federations, national unions or shall be accompanied by the following documents:
workers' associations operating in more than one region shall (a) the name of the applicant association, its principal
be filed with the Bureau or the Regional Offices, but shall be address, the name of its officers and their respective
processed by the Bureau in accordance with Sections 2-B and addresses;
2-D of this Rule. (b) the minutes of the organizational meeting(s) and the list
of members who participated therein;
SEC. 2. Requirements for application. - A. The application for (c) the financial reports of the applicant association if it has
registration of an independent labor union shall be been in existence for one or more years, unless it has not
accompanied by the following documents: collected any amount from the members, in which case a
(a) the name of the applicant labor union, its principal statement to this effect shall be included in the
address, the name of its officers and their respective application;
addresses, approximate number of employees in the (d) the applicant's constitution and by-laws to which must be
bargaining unit where it seeks to operate, with a attached the names of ratifying members, the minutes of
statement that it is not reported as a chartered local of adoption or ratification of the constitution and by-laws
any federation or national union; and the date when ratification was made, unless
(b) the minutes of the organizational meeting(s) and the list ratification was done in the organizational meeting(s), in
of employees who participated in the said meeting(s); which case such fact shall be reflected in the minutes of
(c) the name of all its members comprising at least 20% of the organizational meeting(s).
the employees in the bargaining unit;
(d) the annual financial reports if the applicant has been in D. Application for registration of a workers' association
existence for one or more years, unless it has not operating in more than one region shall be accompanied, in
collected any amount from the members, in which case a addition to the requirements in the preceding subsection, by a
statement to this effect shall be included in the resolution of membership of each member association, duly
application; approved by its board of directors.
(e) the applicant's constitution and by-laws, minutes of its
adoption or ratification, and the list of the members who E. A duly-registered federation or national union may directly
participated in it. The list of ratifying members shall be create a chartered local by submitting to the Regional Office
dispensed with where the constitution and by-laws was two (2) copies of the following:
ratified or adopted during the organizational meeting. In (a) A charter certificate issued by the federation or national
such a case, the factual circumstances of the ratification union indicating the creation or establishment of the
shall be recorded in the minutes of the organizational local/chapter;
meeting(s). (b) The names of the local/chapter’s officers, their
addresses, and the principal office of the local/chapter;
B. The application for registration of federations and national and
unions shall be accompanied by the following documents: (c) The local/chapter’s constitution and by-laws, provided
(a) a statement indicating the name of the applicant labor that where the local/chapter’s constitution and by-laws is
union, its principal address, the name of its officers and the same as that of the federation or national union, this
their respective addresses; fact shall be indicated accordingly.
(b) the minutes of the organizational meeting(s) and the list All of the foregoing supporting requirements shall be certified
of employees who participated in the said meeting(s); under oath by the Secretary or the Treasurer of the
(c) the annual financial reports if the applicant union has local/chapter and attested by its President.
been in existence for one or more years, unless it has not
collected any amount from the members, in which case a SEC. 3. Notice of change of name of labor organizations;
statement to this effect shall be included in the Where to file. - The notice for change of name of a registered
application; labor organization shall be filed with the Bureau or the
(d) the applicant union's constitution and by-laws, minutes Regional Office where the concerned labor organization's
of its adoption or ratification, and the list of the members certificate of registration or certificate of creation of a
who participated in it. The list of ratifying members shall chartered local was issued.
be dispensed with where the constitution and by-laws
was ratified or adopted during the organizational SEC. 4. Requirements for notice of change of name. - The
meeting(s). In such a case, the factual circumstances of notice for change of name of a labor organization shall be
the ratification shall be recorded in the minutes of the accompanied by the following documents:
organizational meeting(s); (a) proof of approval or ratification of change of name; and
(e) the resolution of affiliation of at least ten (10) legitimate (b) the amended constitution and by-laws.
labor organizations, whether independent unions or
chartered locals, each of which must be a duly certified or SEC. 5. Certificate of Registration/Certificate of Creation of
recognized bargaining agent in the establishment where it Chartered Local for change of name. - The certificate of
seeks to operate; and registration and the certificate of creation of a chartered local
(f) the name and addresses of the companies where the issued to the labor organization for change of name shall bear
affiliates operate and the list of all the members in each the same registration number as the original certificate issued
company involved.
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in its favor and shall indicate the following: (a) the new name respective members who approved the same; and the
of the labor organization; (b) its former name; (c) its office or amended constitution and by-laws, minutes of its ratification
business address; and (d) the date when the labor transpired in the consolidation convention or in the same
organization acquired legitimate personality as stated in its general membership meeting(s), which fact shall be indicated
original certificate of registration/certificate of creation of accordingly
chartered local.
SEC. 12. Certificate of Registration. - The certificate of
SEC. 6. Report of Affiliation with federations or national registration issued to a consolidated labor organization shall
unions; Where to file. - The report of affiliation of an bear the registration number of one of the consolidating labor
independently registered labor union with a federation or organizations as agreed upon by the parties to the
national union shall be filed with the Regional Office that consolidation.
issued its certificate of registration.
The certificate of registration shall indicate the following (a)
SEC. 7. Requirements of affiliation. - The report of affiliation the new name of the consolidated labor organization; (b) the
of independently registered labor unions with a federation or fact that it is a consolidation of two or more labor
national union shall be accompanied by the following organizations; (c) the name of the labor organizations that
documents: were consolidated; (d) its office or business address; and (e)
(a) resolution of the labor union's board of directors the date when each of the consolidating labor organizations
approving the affiliation; acquired legitimate personality as stated in their respective
(b) minutes of the general membership meeting approving original certificates of registration.
the affiliation;
(c) the total number of members comprising the labor union 1. Affiliation; Purpose; Nature of Relationship between local
and the names of members who approved the affiliation; union & federation
(d) the certificate of affiliation issued by the federation in • Agency relationship wherein the local union is the
favor of the independently registered labor union; and principal and the federation is the agent
(e) written notice to the employer concerned if the affiliating • The federation does not automatically have authority
union is the incumbent bargaining agent. to act on behalf of the local union. It must be given
authority by the local union.
SEC. 8. Notice of Merger/Consolidation of labor
organizations; Where to file. - Notice of merger or INSULAR HOTEL UNION v. WATERFRONT HOTEL (2010)
consolidation of independent labor unions, chartered locals D: the relationship between the local union and the labor
and workers' associations shall be filed with and recorded by federation or national union with which the former is affiliated
the Regional Office that issued the certificate of is generally understood to be that of agency—with the former
registration/certificate of creation of chartered local of either being the agent, and the latter being the principal, so the local
the merging or consolidating labor organization. Notice of union can still act individually, free of the federation.
merger or consolidation of federations or national unions shall
be filed with and recorded by the Bureau. F: Insular Hotel suspended operations due to business losses.
Insular Hotel and the union signed a MOA, and the hotel
SEC. 9. Requirements of notice of merger. - The notice of reopened subject to certain concessions. Later, 2 union
merger of labor organizations shall be accompanied by the members filed a Notice of Mediation with the NCMB, alleging
following documents: “diminution of benefits through unlawful MOA.” The Notice of
(a) the minutes of merger convention or general membership Mediation stated that the union involved was National
meeting(s) of all the merging labor organizations, with the Federation of Labor (NFL), which the union was affiliated with.
list of their respective members who approved the same; However, the Submission Agreement stated that the union
and involved was Insular Employees Hotel Union-NFL. In
(b) the amended constitution and by-laws and minutes of its subsequent pleadings, NFL’s legal counsel even confirmed
ratification, unless ratification transpired in the merger that the case was not filed by the union, but by NFL and the
convention, which fact shall be indicated accordingly. individual employees named in special powers of attorney
SEC. 10. Certificate of Registration. - The certificate of H: NFL had no authority to file the complaint on behalf of the
registration issued to merged labor organizations shall bear individual employees. Even granting that the union was
the registration number of one of the merging labor affiliated with NFL, the only persons allowed to file a notice of
organizations as agreed upon by the parties to the merger. mediation are certified bargaining representatives, so if the
The certificate of registration shall indicate the following: (a) federation wanted to act on behalf of the local union, it should
the new name of the merged labor organization; (b) the fact have presented proof of its authority to do so.
that it is a merger of two or more labor organizations; (c) the
name of the labor organizations that were merged; (d) its
a. Independent/local union
office or business address; and (e) the date when each of the
merging labor organizations acquired legitimate personality
Book V, Rule I, Sec. 1 (w) "Independent Union" refers to a labor
as stated in their respective original certificate of registration.
organization operating at the enterprise level that acquired
legal personality through independent registration under
SEC. 11. Requirements of notice of consolidation. - The
Article 234 of the Labor Code and Rule III, Section 2-A of these
notice of consolidation of labor organizations shall be
Rules.
accompanied by the following documents:
(a) the minutes of consolidation convention of all the
consolidating labor organizations, with the list of their
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b. Chartered local (local/chapter) d. National Union or Federation


Book V, Rule I, Sec. 1 (kk) "National Union" or "Federation"
For purposes of filing a petition for certification election, refers to a group of legitimate labor unions in a private
acquires legal personality upon issuance of a charter establishment organized for collective bargaining or for
certificate by the duly-registered federation or national union. dealing with employers concerning terms and conditions of
To be entitled to all the other rights and privileges of a employment for their member unions or for participating in the
legitimate labor organization, must also submit formulation of social and employment policies, standards and
• The names of the local/chapter’s officers, their programs, registered with the Bureau in accordance with Rule
addresses, and the principal office of the III, Section 2-B of these Rules.
local/chapter, and
• The chapter’s constitution and by-laws. If the SUGBUANON RURAL BANK v. LAGUESMA (2000)
chapter’s constitution and by-laws are the same as D: A local union maintains its separate personality despite
that of the federation or the national union, this fact affiliation with a larger national federation. One of the rights of
shall be indicated a legitimate labor organization is the right to be certified as
Trade union centers cannot issue charter certificates. The the exclusive representative of all employees in an appropriate
authority is given only to duly-registered federations and bargaining unit for purposes of collective bargaining. Under
national unions. Art 263, the med-Arbiter is mandated to automatically
conduct a certification election upon the filing of a petition by
Book V, Rule I, Sec. 1 (i) “Chartered Local” refers to a labor a legitimate labor organization.
organization in the private sector operating at the enterprise
level that acquired legal personality through registration with F: Union APSOTEU, which was affiliated with national
the Regional Office in accordance with Rule III, Section 2-E of federation TUCP, filed a petition for certification election of the
these Rules. supervisory employees of bank. Bank filed a motion to
dismiss, claiming (1) that union was represented by ALU-
SMC UNION v. SM PACKAGING (2007) TUCP, which also represented the rank-and-file employees, in
D: Since under the pertinent status and applicable violation of the principle of separation of unions, and (2) that
implementing rules, the power granted to labor organizations there is still a pending appeal on the issue of the Union’s
to directly create a chapter or local through chartering is given registration.
to a federation or national union, then a trade union center is
without authority to charter directly. H: Med Arbiter correctly ordered holding of certification
election. (1) No violation of principle of separation of unions.
F: SMCEU-PTGWO challenges the legitimacy of SMPPEU- Petition was filed by union, not ALU or TUCP. Union was
PDMP as a labor organization. SMPPEU-PDMP is registered initially assisted by ALU during its preliminary stages of
with the BLR as a “local” or “chapter” of PDMP and was issued organization. (2) Nothing in the law prohibits such automatic
a charter certificate, so it was directly chartered by PDMP. conduct if there is a pending issue on the union’s registration.
SMCEU-PTGWO claimed that PDMP was not a legitimate labor
organization but a trade union center, hence it cannot directly FILIPINO PIPE & FOUNDRY v. NLRC (1999)
create a local or chapter. D: The mother union, acting for and in behalf of its affiliate,
had the status of an agent while the local union remained the
H: PDMP cannot create a charter because it is merely a trade basic unit of the association, free to serve the common
union center. Although PDMP as a trade union center is a interest of all its members subject only to the restraints
legitimate labor organization, it has no power to directly create imposed by the constitution and by­laws of the association.
a local or chapter. Thus, SMPPEU-PDMP cannot be created (Progressive Dev’t v. SOLE)
under the more lenient requirements for chartering, but must
have complied with the more stringent rules for creation and F: National federation NLU-TUCP filed a notice of strike on
registration of an independent union, including the 20% behalf its local union. Union P a g e | 99 went on a months-
membership requirement. long strike. Consequently, employer filed a petition to declare
the strike illegal with prayer for damages, against union,
COASTAL SUBIC BAY v. DOLE (2006) supra p. 21 national federation, and federation president.
D: A local union does not owe its existence to the federation
with which it is affiliated. It is a separate and voluntary H: Strike was illegal due to lack of legal basis, but federation
association owing its creation to the will of its members. and federation president are not liable for damages. The
Hence, local unions are considered principals while the federation was merely acting as an agent of its principal, the
federation is deemed to be merely their agent. As such union. Direct and primary responsibility for the damages
principals, the unions are entitled to exercise the rights and allegedly caused by the illegal strike fall on the union, being
privileges of a legitimate labor organization, including the right the principal, and not on the federation, a mere agent which
to seek a certification election. assisted the union in filing the notice of strike. Being just an
agent, the notice of strike filed by the federation is deemed to
c. Affiliate have been filed by its principal, the union. Having dismissed
Book V, Rule I, Sec. 1 (a) "Affiliate" refers to an independent the claim for damages against the principal, the action for
union affiliated with a federation, national union or a chartered damages against the agent should also be dismissed.
local which was subsequently granted independent
registration but did not disaffiliate from its federation, 2. Supervisors and File Union Affiliation
reported to the Regional Office and the Bureau in accordance
with Rule III, Sections 6 and 7 of these Rules. • Supervisors may not join the rank and file union, but may
form its own union.
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• The rank and file union and the supervisors’ union may 3. Local Union Disaffiliation: Nature of Right and Legality
join the same federation or national union, even if they
operate within the same establishment. • A local union may disaffiliate at any time from its mother
o As long as the federation is not actively involved federation.
in the union activities in the company o As long as it is not prohibited under its
o And as long as the rank-and-file employees are Constitution and by-laws.
not directly under the supervision of the • The mere act of disaffiliation does not divest the local
supervisory employees union of its own personality.
• The inclusion as union members of employees outside the • Disaffiliation does not give the mother federation the
bargaining unit (e.g. supervisory employees in the rank- license to act independently of the local union, due to the
and-file-union) is not a ground for the cancellation of agency relationship between them.
registration of the union. Automatically removed from list. • Local unions owe their existence to the will of the
members, not to the federation which they are affiliated
Labor Code, Art. 251. supra p. 7 with.

Labor Code, Art. 251-A., supra p. 23 or infra p. 40 PHIL. SKYLANDERS v. NLRC (2002)
D: Local unions remain the basic units of association, free to
A. Principle of Separation of Unions/ Effects of Violation on serve their own interests subject to the restraints imposed by
Legitimacy of The LO the constitution and by-laws of the national federation, and
free also to renounce the affiliation upon the terms laid down
DE LA SALLE UNIVERSITY v. LAGUESMA (1998) in the agreement which brought such affiliation into existence
D: Two conditions had to concur for such affiliation to be
valid: First, the rank-and-file employees are directly under the F: Union PSEA, an affiliate of the federation PAFLU, won the
authority of supervisory employees. Second, the national certification election and became the bargaining agent of the
federation is actively involved in union activities in the company’s rank-and-file employees. A rival union,
company. PSEAWATU, filed an election protest. Pending this protest,
PSEA sent a notice of disaffiliation to PAFLU and affiliated
F: The Federation of Free Workers (FFW), a national federation itself with NCW. PAFLU contests the disaffiliation.
of labor unions, issued a certificate to DLSUMCCM
Supervisory Union Chapter recognizing it as a local chapter. H: SC held that PSEA validly disaffiliated from PAFLU and that
FFW filed on behalf of the union a petition for certification the right of local unions to separate from their mother
election among the supervisory employees of DLSU-MC. This federation on the ground that as separate and voluntary
was opposed by DLSU-MC, which claimed that the act of associations. Furthermore, there was no showing that
supervisory employees in affiliating with FFW to who the rank conditions were imposed for a valid disaffiliation.
and file employees are also affiliated is violates Art. 245.
MSMG-UWP v. RAMOS (2000)
H: SC ruled that unions formed independently by supervisory D: Being a separate and voluntary association, the Local Union
and rank and file employees of a company may validly affiliate is free to serve the interests of all its members including the
with the same national federation. freedom to disaffiliate or declare its autonomy. Such
disaffiliation cannot be considered disloyalty
ATLAS LITHOGRAPHIC v. LAGUESMA (1992)
D: Given that the rank-and-file employees are directly under F: The local union and federation had a bitter disagreement
the authority of supervisory employees and that the national due to a P50 fine imposed on several union members who
federation is actively involved in union activities in the absented from a general membership meeting. The federation
company, such prohibition is meant to prevent a conflict of placed the Local Union under a trusteeship and expelled 30
interest between the two distinct types of employees. union officers from the union and demanded their separation
from employment pursuant to the Union Security Clause. The
F: A supervisory union (ALSI-SAPPACEA-KAMPIL) was company terminated them, and a strike was held.
affiliated with a national union (Kampil-Katipunan),
which also represents the rank-and-file employees’ union. H: Court held that the federation had no valid reason to
demand their dismissal. A local union has the right to
H: The court ruled that this affiliation still runs contrary to the disaffiliate from its mother union or declare its autonomy.
intention of Art. 245 of the Labor Code, which was meant to
prevent supervisory employees from joining rank-and file 4. Sole Essence of Affiliation Vis-à-Vis the Local Union’s Right
labor unions. to Disaffiliate/ Declare Autonomy

HOLY CHILD SCHOOL v. HON. STO TOMAS (2013) supra p. 10 NUBE v. PEMA (2013)
D: The invalidity of membership of one of the organizers does D: A local union which has affiliated itself with a federation is
not make the union illegal, where the requirements of the law free to sever such affiliation anytime and such disaffiliation
for the organization thereof are, nevertheless, satisfied and cannot be considered disloyalty. In the absence of specific
met. Although such mingling must not be brought about by provisions in the federation's constitution prohibiting
misrepresentation, false statement or fraud under Article 239 disaffiliation or the declaration of autonomy of a local union, a
of the Labor Code. local may dissociate with its parent union.

F: After the expiration of the CBA, PEMA-FFW (another union)


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filed a petition for Certification Election (CE). Meanwhile, due course except within the 60- day freedom period
NUBE-PEC disaffiliated with NUBE and sought independent immediately preceding the expiration of a CBA).
registration. PEMA (the previous NUBE-PEC) wrote a letter to
PNB to stop remitting the P15 to NUBE. NUBE opposed H: In this case, the SC held that such disaffiliation, no doubt
PEMA’s move to stop the remittances. was raised on the support of the majority of the union
members on the decision to disaffiliate. Non-compliance with
H: The SC affirmed disaffiliation saying that local unions have the procedure on disaffiliation, being premised on purely
a right to disaffiliate itself with the federation at any time, technical grounds cannot rise above the fundamental right of
absent any showing that the same is prohibited under its self-organization.
constitution or rule
V. THE APPROPRIATE BARGAINING UNIT .
5. Mass Disaffiliation
A. Law And Definition
• Mass disaffiliation of members from a union is valid.
• Mass disaffiliation is implicit in the freedom of Appropriate Bargaining Unit
association in the Constitution, which allows any
individual to join an organization of his choice, as in this • A group of employees sharing mutual interests within
case, to struggle for better terms and conditions in the a given employer unit
work place. Union members could disaffiliate as an • Comprised of:
exercise of their freedom of association. o all or less than all of the entire body of
employees in the employer unit; OR
PHIL. LABOR ALLIANCE COUNCIL v. BLR (1977) o any specific occupational or geographical
D: Mass disaffiliation is implicit in the freedom of association grouping within such employer unit.
in the Constitution, which allows any individual to join an • A group of employees of a given employer, comprised
organization of his choice, as in this case, to struggle for of all or less than all of the entire body of employees,
better terms and conditions in the work place. Union members which the collective interest of all employees,
could disaffiliate as an exercise of their freedom of consistent with equity to the employer, indicate to be
association best suited to serve reciprocal rights and duties of the
parties under the collective bargaining provisions of
F: Ten months before the expiry of the CBA, PLAC renegotiated the law.
it and alleged that it was ratified by an unanimous vote and
alleged that they were the sole union in the company. FFW LC, Art 261. Exclusive bargaining representation and workers’
contending 60% membership of rank and file employees and participation in policy and decision-making. The labor
disaffiliation from PLAC sought certification election. organization designated or selected by the majority of the
employees in an appropriate collective bargaining unit shall be
H: SC stated that once disaffiliation is proved beyond doubt, the exclusive representative of the employees in such unit for
certification election is the most expeditious way of the purpose of collective bargaining. However, an individual
determining the exclusive bargaining representative. An employee or group of employees shall have the right at any
exception to this rule is a contract-bar rule when the CBA is time to present grievances to their employer.
inforce for a reasonable duration but not in this case.
Full provision (Art. 261) on p. 41, infra
6. Period
LC, Art 248 Unfair Labor Practices (b) To require as a
• General rule: A labor union may only disaffiliate during the condition of employment that a person or an employee shall
60-day freedom period immediately preceding the CBA. not join a labor organization or shall withdraw from one to
o Exception: It may disaffiliate when there is a shift which he belongs
of allegiance on the part of the majority of the
members of the union. Book V, Rule I, Sec. 1 (d) “Bargaining Unit” refers to a group of
employees sharing mutual interests within a given employer
ALLIANCE OF NATIONALIST v. SAMANA (1996) unit, comprised of all or less than all of the entire body of
D: Generally, a labor union may disaffiliate from the mother employees in the employer unit or any specific occupational
union to form a local or independent union only during the 60- or geographical grouping within such employer unit.
day freedom period immediately preceding the expiration of
the CBA. However, even before the onset of the freedom BELYCA CORP. v. CALLEJA (1988)
period, disaffiliation may be carried out when there is a shift of D: In any event, whether importance is focused on the
allegiance on the part of the majority of the members of the employment status or the mutuality of interest of employees
union. concerned, the basic test of an asserted bargaining unit’s
acceptability is whether or not it is fundamentally the
F: Union SAMANA BAY decided to disaffiliate from ANGLO in combination which will best assure to all employees the
view of the latter’s dereliction of its duty to promote and exercise of their collective bargaining rights.
advance the welfare of union members. This was unanimously
approved by union members. ANGLO contends that the F: Union sought direct certification as the sole and exclusive
disaffiliation was void because the procedural requirements bargaining agent of all the rank-and-file workers of the
for a valid disaffiliation were not followed, and that it was company’s live- stock-agro division. Company contended that
made in violation of P.D. 1391 (no disaffiliation shall be given the bargaining unit must include all the workers in its
UP LAW C2017 LABOR 2 (PROF. DAWAY) MIDTERMS REVIEWER | 39

integrated business concerns (ranging from piggery and Dairy Products in North Luzon, insisting that its collective
poultry, to supermarkets and cinemas) so as not to split an bargaining history of having a separate bargaining unit for
otherwise single bargaining unit into fragmented bargaining each sales office should be the most persuasive criterion in
units. determining the appropriateness of a collective bargaining
unit.
H: Court held that rank and file employees of the livestock-
agro division fully constitute a bargaining unit that satisfies H: There is similarity of employment status since only the
both requirements of classification according to employment regular sales personnel in North Luzon are covered. There is
status and of the substantial, similarity of work and duties, substantial mutual interest since the employees have the
which ultimately assure its members the exercise of their same duties and responsibilities and substantially similar
collective bargaining rights. compensation and working conditions. Also, San Miguel
cannot insist that each sales office should constitute only one
B. Determination Of Appropriate Bargaining Unit bargaining unit because of the meager number of sales
personnel in each office.
Factors considered in determining the proper constituency of a
collective bargaining unit: 2. “Community or Mutuality of Interests” Test
1. Will of employees (Globe Doctrine)
2. Affinity and unity of employee's interest, such as SAN MIGUEL FOODS v. SMC SUPERVISORS (2011)
substantial similarity of work and duties or similarity D: There is certainly a mutuality of interest among the
of compensation and working conditions employees when their functions mesh with one another.
(Substantial-mutual Interest Test/ Community or Certain factors, such as specific line of work, working
Mutiality of Interests Test) conditions, location of work, mode of compensation, and other
3. Prior collective bargaining history relevant conditions do not affect or impede their commonality
4. Employment status, such as temporary, seasonal and of interest.
probationary employees
F: San Miguel wanted to exclude certain employees from the
OTHER FACTORS: bargaining unit. It argued that employees involved in “live”
• History, extent and type of organization of employees chicken operations should not be included in the bargaining
in other plants of the same employer or other unit of employees involved in “dressed” chicken processing.
employers in the same industry
• Skill, wages, work and working conditions of the H: There should only be 1 bargaining unit for those employees
employees involved in “dressed” chicken processing and those engaged
Desires of the employees in “live” chicken operations. Although they seem separate and
• Eligibility of the employees for membership in the distinct from each other, the specific tasks of each division
union or unions involved are actually interrelated and there exists mutuality of interests
Relationship between the unit or units proposed which warrants the formation of a single bargaining unit.
• Employer’s organization, management and operation
3. Unit Severance and Globe Doctrine
1. Factors – Unit Determination
MECHANICAL DEPT. UNION v. CIR (1968)
U.P. v. FERRER-CALLEJA (1992) D: Globe Doctrine states that the will of the employees is one
D: The "community or mutuality of interests" test has provided of the fundamental factors in determining the appropriate
the standard in determining the proper constituency of a bargaining unit.
collective bargaining unit.
F: The Mechanical Department of PNR is composed of 4 units.
F: The Director of the BLR promulgated and Order stating that MDLU represents two of these units. Samahan ng
professors, associate professors, and assistant professors Manggagawa sa Caloocan Shops seeks to be the
should be grouped with rank-and-file employees under one representative of the Shops Rolling Stocks Maintenance
collective bargaining unit. Division. CIR ordered that a plebiscite be held to determine
whether the employees at the Caloocan Shops desire that
H: The SC ruled that the community or mutuality of interests Samahan be separated from the MDLU.
which justifies the formation of a single collective bargaining
unit is wanting between the academic and nonacademic H: Court held that the application of the Globe doctrine is
personnel of the university. The formation of two separate warranted. The Caloocan shops workers have a community of
bargaining units is the set-up that will best assure to all the interest and working conditions. Moreover, they require
employees the exercise of their collective bargaining rights. special skills in the use of heavy equipment and machinery,
sufficient to set them apart from the rest of the workers.
SAN MIGUEL v. LAGUESMA (1994)
D: The existence of a prior collective bargaining history is KAIPISANAN SA MANILA RAILROAD v. YARD CREW UNION
neither decisive nor conclusive in the determination of what (1960)
constitutes an appropriate bargaining unit. D: CIR has the right of full investigation in arriving at a correct
and conclusive finding of fact in order to deny or grant the
F: SMC assailed the certification of the North Luzon Labor petitions for certification election, and one way of determining
Union as the sole and exclusive bargaining agent for all the the will or desire of the employees is what it had suggested:
regular sales personnel in all the sales offices of Magnolia plebiscite carried by secret ballot.
UP LAW C2017 LABOR 2 (PROF. DAWAY) MIDTERMS REVIEWER | 40

F: 3 unions wanted to be certified as separate bargaining units employees and can create a new bargaining unit. However, to
and in response to those petitions, CIR ordered that a prevent difficulty, to avoid confusion, etc., the Court opined
plebiscite via secret ballot be conducted to determine whether that the monthlies may join the daily-paid employees in the
the employees truly desire to be separated from the unit of the existing union. It has not been shown that NATUMPE-NATU
rest of the employees. Kapisanan opposed this Order, saying was privy to the prior agreement.
that it had already been duly certified to represent the rest of
the employees, and it had already entered into a CBA with the 7. Effect of Including Employees Outside the Bargaining Unit/
company. Mixture of R&F and Supervisory Employees

H: Court held that desire of employees is one of the factors in LC, Art. 251-A (RA 9481) Effect of Inclusion as Members of
determining the appropriate bargaining unit, and as such, a Employees Outside the Bargaining Unit. The inclusion as union
plebiscite, not another certification election, may rightfully be members of employees outside the bargaining unit shall not
conducted. be a ground for the cancellation of the registration of the
union. Said employees are automatically deemed removed
4. Size of Unit and Effect of Self-Organization from the list of membership of said union.

FILOIL REFINERY v. FILOIL SUPERVISORY (1972) SAMAHANG MANGGAGAWA SA CHARTER CHEMICAL-SUPER


D: Such inclusion fulfills the law's objective of insuring to v. CHARTER CHEMICAL & COATING CORP. (2011)
them the full benefit of their right to self-organization and to D: Comingling of rank-and-file and supervisory employees in a
collective bargaining, which could hardly be accomplished if union does not affect its status as a legitimate labor
the association's membership were to be broken up into five organization.
separate ineffective tiny units.
F: Association which includes supervisory and confidential F: SMCC-SUPER filed a petition for certification election in
employees filed a petition for certification election. Filoil 1999. CCCC opposed it on the grounds of failure to certify and
objected, arguing that supervisors and confidential employees attest to certain documentary requirements, and the
should not be in the same bargaining unit. comingling of rank- and-file and supervisory employees.

H: SC held that since the confidential employees are very few H: SC ruled in favor of the union. The comingling has no effect
in number and are by practice and tradition identified with the as the status of the union as a legitimate labor organization.
supervisors in their role as representatives of management, Pursuant to the Kawashima case (which had the same
their inclusion is proper applicable law with this case), SMCC-SUPER was not divested
of its status as a legitimate labor organization even if some of
5. CBA Coverage its members were supervisory employees.

FARLEY FULACHE v. ABS-CBN (2010) 8. Difference Between the Concept of a Union/ LLO and
D: Employees that fall within CBA coverage under the CBA’s Bargaining Unit
express terms and are entitled to its benefits. CBA coverage is
not only a question of fact, but of law and contract. STA. LUCIA EAST COMMERCIAL CORP. v. SEC. OF LABOR
(2009)
F: ABS-CBN excluded petitioners in the CBA agreement. D: The corporation and the other union cannot, by themselves,
Petitioners filed a regularization case. The LA found them to decide whether the union represented an appropriate
be regular employees. Pending appeal to the NLRC, ABS-CBN bargaining unit.
dismissed the petitioners so an illegal dismissal case was
filed. F: A local union initially applied for certification election but
was denied by the BLR for inappropriateness of the bargaining
H: The SC ruled that they were regular employees and are unit. It reorganized and re-registered. Meanwhile, the
entitled to the benefits under the CBA. These benefits and corporation voluntarily recognized another union as the
privileges arise from entitlements under the law, their bargaining representative and entered into a CBA with it.
employment contract as regular employees, part of which is
the CBA if they fall within the coverage of the agreement. H: The voluntary recognition and the ratification of the CBA
are null and void. Voluntary recognition can only be done in
6. Effect of Prior Agreement unorganized establishments. The local was a legitimate labor
org at the time of the voluntary recognition.
GENERAL RUBBER v. BLR (1997)
D: A prior agreement can never bind subsequent federations C. Determining Agency
and unions if such unions are not privy thereto, or if such
agreement is a curtailment of the right to self-organization LC, Art. 232. Bureau of Labor Relations. The Bureau of Labor
guaranteed by labor Relations and the Labor Relations Divisions in the regional
offices of the Department of Labor, shall have original and
F: The monthly-paid employees of GRFC formed NATUMPE- exclusive authority to act, at their own initiative or upon
NATU and filed a petition for direct certification. GRFC request of either or both parties, on all inter-union and intra-
opposed the petition because of a prior agreement prohibiting union conflicts, and all disputes, grievances or problems
sale. arising from or affecting labor-management relations in all
workplaces, whether agricultural or non- agricultural, except
H: The Court held that the union members are not managerial those arising from the implementation or interpretation of
UP LAW C2017 LABOR 2 (PROF. DAWAY) MIDTERMS REVIEWER | 41

collective bargaining agreements which shall be the subject of C. Methods of Establishing Majority Status
grievance procedure and/or voluntary arbitration.
1. Policy/ Rationale
The Bureau shall have fifteen (15) working days to act on labor
cases before it, subject to extension by agreement of the Promote free trade unionism:
parties. • Through expeditious procedures governing the choice of
an exclusive bargaining agent.
LC, Art. 238. Prohibition on certification election. The Bureau • Non-litigious proceeding which shall be free from the
shall not entertain any petition for certification election or any technicalities of law.
other action which may disturb the administration of duly • Free, meaning freedom from interference of the labor
registered existing collective bargaining agreements affecting organization, employer and government.
the parties except under Articles 253, 253-A and 256 of this • Employer being a mere bystander.
Code.
The purpose of a certification election is the ascertainment of
FILOIL REFINERY CORP. v. FILOIL SUPERVISORY AND the wishes of the majority of the employees in the appropriate
CONFIDENTIAL EMPLOYEES ASSN. (1972) supra p. 40 bargaining unit. The law grants the right to vote to all bona fide
D: Such inclusion fulfills the law's objective of insuring to employees in the bargaining unit, whether they are members of
them the full benefit of their right to self-organization and to a labor organization or not. (Reyes v. Trajano)
collective bargaining, which could hardly be accomplished if
the association's membership were to be broken up into five LC, Art. 261. Exclusive bargaining representation and workers'
separate ineffective tiny units. participation in policy and decision-making. The labor
organization designated or selected by the majority of the
VI. UNION REPRESENTATION: . employees in an appropriate collective bargaining unit shall be
the exclusive representative of the employees in such unit for
ESTABLISHING MAJORITY STATUS . the purpose of collective bargaining. However, an individual
employee or group of employees shall have the right at any
A. Pre-Condition: Employer-Employee Relationship time to present grievances to their employer.
ALLIED FREE WORKERS UNION v. CIA. MARITIMA (1967) Any provision of law to the contrary notwithstanding, workers
D: The duty to bargain collectively arises only between the shall have the right, subject to such rules and regulations as
"employer" and its "employees". Where neither party is an the Secretary of Labor and Employment may promulgate, to
"employer" nor an "employee" of the other, no such duty would participate in policy and decision-making processes of the
exist. establishment where they are employed insofar as said
processes will directly affect their rights, benefits and welfare.
F: CM and AFWU entered into a contract where AFWU would For this purpose, workers and employers may form labor-
do stevedoring and arrastre services for CM’s boats. AFWU management councils: Provided, That the representatives of
instituted proceedings to be certified as the sole and exclusive the workers in such labor-management councils shall be
bargaining agent in the bargaining unit composed of all the elected by at least the majority of all employees in said
laborers doing the arrastre and stevedoring work for CM establishment.
vessels in Iligan, but CM alleged there was no employer-
employee relationship. AFWU charged CM before the IC of LC, Art. 248 (b). A legitimate labor organization shall have the
unfair labor practices. CM moved for the contract to be right: (b) To be certified as the exclusive representative of all
rescinded. the employees in an appropriate bargaining unit for purposes
of collective bargaining;
H: AFWU operated as an independent contractor of CM under
the “cabo” system. Certification election is unnecessary. Bk. V, Rule VI, SEC. 1. Policy. – It is the policy of the State to
promote free trade unionism through expeditious procedures
B. Labor-Management Council governing the choice of an exclusive bargaining agent. The
determination of such exclusive bargaining agent is a non-
LC, Art. 261, Par. 2, infra litigious proceeding and, as far as practicable, shall be free
from technicalities of law and procedure, provided only that in
CIRTEK EMPLOYEES LABOR UNION-FFW v. CIRTEK every case, the exclusive bargaining agent enjoys the majority
ELECTRONICS (2011) support of all the employees in the bargaining unit.
D: LMC should not be used as an avenue for bargaining but for
the purpose of affording workers to participate in policy and LC, Art. 217A (b). It is the policy of the State: (b) To promote
decision-making. free trade unionism as an instrument for the enhancement of
democracy and the promotion of social justice and
F: Before the Sec. of Labor could rule on the a pending dispute development.
between the company and the union, the remaining officers
formed a Labor-Management Council (LMC) through which a Const. Art. XIII, SEC. 3. The State shall afford full protection to
MOA was perfected. labor, local and overseas, organized and unorganized, and
promote full employment and equality of employment
H: The agreements embodied in the MOA were not the proper opportunities for all.
subject of the LMC deliberation or procedure but of CBA
negotiations and, therefore, deserve little weight. It shall guarantee the rights of all workers to self-organization,
collective bargaining and including the right to strike in
UP LAW C2017 LABOR 2 (PROF. DAWAY) MIDTERMS REVIEWER | 42

accordance with law. They shall be entitled to security of o Majority of the workers may elect their
tenure, humane conditions of work, and a living wage. They representatives to labor-management councils
shall also participate in policy and decision-making processes which may be formed for purposes of polciy
affecting their rights and benefits as may be provided by law. formulation.
o Even though members have the right to present
The State shall promote the principle of shared responsibility their grievances to their employers, this does not
between workers and employers and the preferential use of imply their right to represent the union to
voluntary modes in settling disputes, including conciliation, voluntary arbitration. Without proper authority,
and shall enforce their mutual compliance therewith to foster the workers have no right to represent the union.
industrial peace. (J. Tabigue v. International Copra Export Corp.)

The State shall regulate the relations between workers and LC, Art. 261, supra p. 41
employers, recognizing the right of labor to its just share in the
fruits of production and the right of enterprises to reasonable J. TABIGUE v. INTERNATIONAL COPRA EXPORT CORP. (2009)
returns to investments, and to expansion and growth. D: Only disputes involving the union and the company shall be
referred to the grievance machinery or voluntary arbitrators.
SAMAHANG MANGGAGAWA SA PERMEX v. SEC. OF LABOR
(1998) F: Petitioners were members of the Union who filed Notice of
D: The employer has no authority to give direct certification to Preventive Mediation against Company for violation of the
a union for it is the employees' prerogative to determine CBA. Before they could meet, the President of the Union sent a
whether they want a union to represent them, and if so, which letter to the Company informing them the petitioners were
one it should be. never authorized by the board to represent the union.

F: A certification election was conducted among the H: The NCMB validly denied Petitioners voluntary arbitration.
employees of Permex. However, some of the employees Only disputes involving the union and the company shall be
formed SMP, later affiliated with PIILU. The company referred to the grievance machinery or voluntary arbitrators.
recognized SMP-PIILU and entered into a CBA with it. CBA While Art 255 provides the right of any employee or group of
was ratified by the employees. NFL filed a petition for employees to, at any time, present grievances to the employer,
certification election which was dismissed by Med-Arbiter but this does not imply their right to represent the union to
granted by SOLE. SMP-PIILU moved for reconsideration but voluntary arbitration.
was denied.
3. Voluntary Recognition
H: Permex should not have given voluntary recognition to
SMP-PIILU. The company did not have the power to declare Definition: Process by which a legitimate labor organization is
the union the exclusive bargaining representative of the recognized by the employer as the exclusive bargaining
workers. By virtue of EO 111, the direct certification previously representative or agent in a bargaining unit
allowed under the LC had been discontinued as a method of
selecting the exclusive bargaining agent of the workers. Also, Requisites
it is not enough that a union has the support of the majority of 1. Unorganized establishment (there is no recognized or
the employees. It is equally important that everyone in the certified sole and exclusive bargaining agent)
bargaining unit be given the opportunity to express himself. 2. Only one legitimate labor organization
Especially in this case where the employees voted No Union
but just 10 months later, supported SMP-PIILU. Procedure – see Bk. V, Rule VII, infra p. 43

REYES v. TRAJANO (1992) supra p. 8 Effects of recording the fact of voluntary recognition:
D: The purpose of a certification election is precisely the a. Recognized labor union shall enjoy the rights,
ascertainment of the wishes of the majority of the employees privileges and obligations of an existing bargaining
in the appropriate bargaining unit. If the results of the election b. Bars the filing of a petition for certification election by
should disclose that the majority of the workers do not wish to any labor organization for a period of 1 year from the
be represented by any union, then their wishes must be date of entry of voluntary recognition.
respected. The minority employees can do nothing but wait • Upon expiration of this one-year period, any LLO may
for another suitable occasion to petition for a certification file a petition for certification election in the same
election and hope that the results will be different. They may bargaining unit represented by the voluntarily
not and should not be permitted, however, to impose their will recognized union.
on the majority. o Exception: When a CBA between the
employer and voluntarily recognized labor
2. Representation Role union was executed and registered with the
Regional Office.
• On matters relating to collective bargaining - workers
MUST be represented Art. 248(c). Rights of legitimate labor organizations. A
• On matters relating to employees’ grievances - individual legitimate labor organization shall have the right: (c.) To be
employee or group of employees, in their own capacity, furnished by the employer, upon written request, with its
may deal with the employer annual audited financial statements, including the balance
• On matters relating to policy and decision-making sheet and the profit and loss statement, within thirty (30)
processes calendar days from the date of receipt of the request, after the
union has been duly recognized by the employer or certified as
UP LAW C2017 LABOR 2 (PROF. DAWAY) MIDTERMS REVIEWER | 43

the sole and exclusive bargaining representative of the together with all its accompanying documents without
employees in the bargaining unit, or within sixty (60) calendar prejudice to its re-submission.
days before the expiration of the existing collective bargaining
agreement, or during the collective bargaining negotiation; SEC. 4. Effect of recording of fact of voluntary recognition -
From the time of recording of voluntary recognition, the
Bk. V, Rule I, SEC. 1 (bbb). “Voluntary Recognition” refers to recognized labor union shall enjoy the rights, privileges and
the process by which a legitimate labor union is recognized by obligations of an existing bargaining agent of all the
the employer as the exclusive bargaining representative or employees in the bargaining unit.
agent in a bargaining unit, reported with the Regional Office in
accordance with Rule VII, Section 2 of these Rules. Entry of voluntary recognition shall bar the filing of a petition
for certification election by any labor organization for a period
Bk. V, Rule VI, SEC. 2. Determination of representation status; of one (1) year from the date of entry of voluntary recognition.
modes. - The determination of an exclusive bargaining agent Upon expiration of this one-year period, any legitimate labor
shall be through voluntary recognition in cases where there is organization may file a petition for certification election in the
only one legitimate labor organization operating within the same bargaining unit represented by the voluntarily
bargaining unit, or through certification, run-off or consent recognized union, unless a collective bargaining agreement
election as provided in these Rules. between the employer and voluntarily recognized labor union
was executed and registered with the Regional Office in
Bk. V, Rule VII. VOLUNTARY RECOGNITION accordance with Rule XVII of these Rules.

SEC. 1. When and where to file. – In unorganized STA. LUCIA EAST COMMERCIAL CORP. v. SECRETARY OF
establishments with only one legitimate labor organization, the LABOR (2009) supra p. 40
employer may voluntarily recognize the representation status D: Voluntary recognition can only be done in unorganized
of such union. Within thirty (30) days from such recognition, establishments
the employer and union shall submit a notice of voluntary
recognition with the Regional Office which issued the 4. Elections
recognized labor union’s certificate of registration or
certificate of creation of a chartered local. a. Certification Election
• Process of determining through secret ballot the sole
SEC. 2. Requirements for voluntary recognition. – The notice and exclusive representative of the employees in an
of voluntary recognition shall be accompanied by the original appropriate bargaining unit for purposes of collective
copy and two (2) duplicate copies of the following documents: bargaining or negotiation.
(a) a joint statement under oath of voluntary recognition
• Ordered by the DOLE
attesting to the fact of voluntary recognition;
• When two labor unions are competing to be the
(b) certificate of posting of the joint statement of voluntary
bargaining representative, the election is the most
recognition for fifteen (15) consecutive days in at least two (2)
democratic method to ascertain the will of the
conspicuous places in the establishment or bargaining unit
employees. (Oriental Tin Can Labor Union v. Sec. of
where the union seeks to operate;
Labor)
(c) the approximate number of employees in the bargaining
unit, accompanied by the names of those who support the • The certification election is not litigation but a mere
voluntary recognition comprising at least a majority of the investigation of a non-adversary character where the
members of the bargaining unit; rules of procedure are not strictly applied. Technical
(d) a statement that the labor union is the only legitimate labor rules and objections should not hamper the correct
organization operating ascertainment of the labor union that has the support
within the bargaining unit. of confidence of the majority of the workers and is
All accompanying documents of the notice for voluntary thus entitled to represent them in their dealings with
recognition shall be certified under oath by the employer management. (Port Workers Union v. DOLE)
representative and president of the recognized labor union.
Art. 262 (as amended by R.A. 9481). Representation Issue in
SEC. 3. Action on the Notice. - Where the notice of voluntary Organized Establishments. - In organized establishments,
recognition is sufficient in form, number and substance and when a verified petition questioning the majority status of the
where there is no other registered labor union operating within incumbent bargaining agent is filed by any legitimate labor
the bargaining unit concerned, the Regional Office, through the organization including a national union or federation which
Labor Relations Division shall, within ten (10) days from has already issued a charter certificate to its local chapter
receipt of the notice, record the fact of voluntary recognition in participating in the certification election or a local chapter
its roster of legitimate labor unions and notify the labor union which has been issued a charter certificate by the national
concerned. union or federation before the Department of Labor and
Employment within the sixty (60)-day period before the
Where the notice of voluntary recognition is insufficient in expiration of the collective bargaining agreement, the Med-
form, number and substance, the Regional Office shall, within Arbiter shall automatically order an election by secret ballot
the same period, notify the labor union of its findings and when the verified petition is supported by the written consent
advise it to comply with the necessary requirements. Where of at least twenty-five percent (25%) of all the employees in the
neither the employer nor the labor union failed to complete the bargaining unit to ascertain the will of the employees in the
requirements for voluntary recognition under Section 2 of this appropriate bargaining unit. To have a valid election, at least a
Rule within thirty (30) days from receipt of the advisory, the majority of all eligible voters in the unit must have cast their
Regional Office shall return the notice for voluntary recognition votes. The labor union receiving the majority of the valid votes
cast shall be certified as the exclusive bargaining agent of all
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the workers in the unit. When an election which provides for Postponements or continuances shall be discouraged.
three or more choices results in no choice receiving a majority Within the same 15-day period within which the petition is
of the valid votes cast, a run-off election shall be conducted heard, the contending labor unions may file such pleadings as
between the labor unions receiving the two highest number of they may deem necessary for the immediate resolution of the
votes: Provided, That the total number of votes for all petition. Extensions of time shall not be entertained. All
contending unions is at least fifty percent (50%) of the number motions shall be resolved by the Med-Arbiter in the same
of votes cast. In cases where the petition was filed by a order or decision granting or denying the petition.
national union or federation, it shall not be required to disclose
the names of the local chapter's officers and members. SEC. 23. Effects of consent election. - Where a petition for
certification election had been filed, and upon the intercession
At the expiration of the freedom period, the employer shall of the Med-Arbiter, the parties agree to hold a consent
continue to recognize the majority status of the incumbent election, the results thereof shall constitute a bar to the
bargaining agent where no petition for certification election is holding of a certification election for one (1) year from the
filed. holding of such consent election. Where an appeal has been
filed from the results of the consent election, the running of the
Bk. V, Rule I, SEC. 1 one-year period shall be suspended until the decision on
(h) "Certification Election" or "Consent Election" refers to the appeal has become final and executory.
process of determining through secret ballot the sole and
exclusive representative of the employees in an appropriate Where no petition for certification election was filed but the
bargaining unit for purposes of collective bargaining or parties themselves agreed to hold a consent election with the
negotiation. A certification election is ordered by the intercession of the Regional Office, the results thereof shall
Department, while a consent election is voluntarily agreed constitute a bar to another petition for certification election.
upon by the parties, with or without the intervention by the
Department. c. Run-Off Election
(ll) “Organized Establishment” refers to an enterprise where
there exists a recognized or certified sole and exclusive • An election between the labor unions receiving the 2
bargaining agent. highest number of votes in a certification or consent
election with 3 or more choices, where such a
Bk. V, Rules VIII and IX, - infra pp. 50-54 certified or consent results in none of the 3 or more
choices receiving the majority of the valid votes cast;
Bk. V, Rule X, infra pp. 44-45 provided that the total number of votes for all
contending unions is at least fifty percent (50%) of the
b. Consent Election number of votes cast.
Requisites:
• Definition: Process of determining through secret 1. Election provides for 3 or more choices
ballot the sole and exclusive representative of the 2. Results in none of the contending unions (no choice)
employees in an appropriate bargaining unit for receiving a majority of the valid votes cast
purposes of collective bargaining or negotiation. 3. Total number of votes for all contending unions is at
• Voluntarily agreed upon by the parties, with or without least 50% of the number of votes cast
the intervention by the DOLE. 4. There are no objections/ challenges which if
sustained can materially alter the results
Bk. V, Rule I, SEC. 1 (h), supra
LC, Art. 262, par. 1, penultimate sentence - When an election
Bk. V, Rule VIII which provides for three or more choices results in no choice
receiving a majority of the valid votes cast, a run-off election
SEC. 10. Consent Election; Agreement. - In case the shall be conducted between the labor unions receiving the two
contending unions agree to a consent election, the Med- highest number of votes: Provided, That the total number of
Arbiter shall not issue a formal order calling for the conduct of votes for all contending unions is at least fifty percent (50%) of
certification election, but shall enter the fact of the agreement the number of votes cast.
in the minutes of hearing. The minutes of the hearing shall be
signed by the parties and attested to by the Med-Arbiter. Med- Bk. V, Rule I, SEC. 1 (ss) - "Run-off Election" refers to an
Arbiter shall, immediately thereafter, forward records of the election between the labor unions receiving the two (2) highest
petition to the Regional Director or his/her authorized number of votes in a certification or consent election with
representative for the determination of the Election Officer by three (3) or more choices, where such a certified or consent
the contending unions through raffle. The first pre-election results in none of the three (3) or more choices receiving the
conference shall be scheduled within ten (10) days from the majority of the valid votes cast; provided that the total number
date of entry of agreement to conduct consent election. of votes for all contending unions is at least fifty percent (50%)
of the number of votes cast.
SEC. 11. Number of Hearings; Pleadings. - If the contending
unions fail to agree to a consent election during the Bk. V, Rule X. RUN-OFF ELECTIONS
preliminary conference, the Med-Arbiter may conduct as many
hearings as he/she may deem necessary, but in no case shall SEC. 1. When proper. - When an election which provides for
the conduct thereof exceed fifteen (15) days from the date of three (3) or more choices results in none of the contending
the scheduled preliminary conference/hearing, after which unions receiving a majority of the valid votes cast, and there
time the petition shall be considered submitted for decision. are no objections or challenges which if sustained can
The Med-Arbiter shall have control of the proceedings. materially alter the results, the Election Officer shall motu
UP LAW C2017 LABOR 2 (PROF. DAWAY) MIDTERMS REVIEWER | 45

proprio conduct a run-off election within ten (10) days from also mean that neither party shall terminate nor modify such
the close of the election proceedings between the labor unions agreement during its lifetime. However, either party can serve
receiving the two highest number of votes; provided, that the a written notice to terminate or modify the agreement at least
total number of votes for all contending unions is at least fifty sixty (60) days prior to its expiration date. It shall be the duty
(50%) percent of the number of votes cast. of both parties to keep the status quo and to continue in full
force and effect the terms and conditions of the existing
"No Union" shall not be a choice in the run-off election. agreement during the 60-day period and/or until a new
agreement is reached by the parties.
Notice of run-off elections shall be posted by the Election
Officer at least five (5) days before the actual date of run-off LC, Art. 238. supra p. 41
election.
Bk. V, Rule I, Sec. 1 (ll) “Organized Establishment” refers to an
SEC. 2. Qualification of voters. - The same voters' list used in enterprise where there exists a recognized or certified sole and
the certification election shall be used in the run-off election. exclusive bargaining agent.
The ballots in the run-off election shall provide as choices the
unions receiving the highest and second highest number of the 1) When to File
votes cast. The labor union receiving the greater number of
valid votes cast shall be certified as the winner, subject to Bk. V, Rule VIII, SEC. 3. When to file. - A petition for
Section 20, Rule IX. certification election may be filed anytime, except:
(a) [One Year Bar/ Recognition or Certification Bar Rule] when
5. Venue of Petition a fact of voluntary recognition has been entered or a valid
certification, consent or run-off election has been
Bk. V, Rule VIII, SEC 2. Where to file. - A petition for conducted within the bargaining unit within one (1) year
certification election shall be filed with the Regional Office prior to the filing of the petition for certification election.
which issued the petitioning union's certificate of Where an appeal has been filed from the order of the Med-
registration/certificate of creation of chartered local. Arbiter certifying the results of the election, the running of
the one year period shall be suspended until the decision
The petition shall be heard and resolved by the Med-Arbiter. on the appeal has become final and executory;
Where two or more petitions involving the same bargaining (b) [Negotiation Bar Rule] when the duly certified union has
unit are filed in one Regional Office, the same shall be commenced and sustained negotiations in good faith with
automatically consolidated with the Med-Arbiter who first the employer in accordance with Article 250 of the Labor
acquired jurisdiction. Where the petitions are filed in different Code within the one year period referred to in the
Regional Offices, the Regional Office in which the petition was immediately preceding paragraph;
first filed shall exclude all others; in which case, the latter shall (c) [Deadlock Bar Rule] when a bargaining deadlock to which
indorse the petition to the former for consolidation. an incumbent or certified bargaining agent is a party had
been submitted to conciliation or arbitration or had
Bk. V, Rule VII, SEC. 1. When and where to file. - In become the subject of a valid notice of strike or lockout;
unorganized establishments with only one legitimate labor (d) [Contract Bar Rule] when a collective bargaining
organization, the employer may voluntarily recognize the agreement between the employer and a duly recognized or
representation status of such union. Within thirty (30) days certified bargaining agent has been registered in
from such recognition, the employer and union shall submit a accordance with Article 231 of the Labor Code. Where
notice of voluntary recognition with the Regional Office which such collective bargaining agreement is registered, the
issued the recognized labor union’s certificate of registration petition may be filed only within sixty (60) days prior to its
or certificate of creation of a chartered local. expiry.

D. Certification Election - Process i) Petition Before Freedom Period

Bk. V, Rules VIII and IX, - infra pp. 50-53; Bk. V, Rule X, supra It’s called Freedom Period because any legitimate labor
organization may freely contest the majority status of the
1. Union as Initiating Party incumbent bargaining agent during this period.

LC, Art. 248 (b). Rights of legitimate labor organizations. A Art. 259, supra
legitimate labor organization shall have the right: (b) To be
certified as the exclusive representative of all the employees in Art. 262, supra p. 43
an appropriate bargaining unit for purposes of collective
Bk. V, Rule VIII, SEC. 3(d), supra
bargaining;
Last sentence: "Where such collective bargaining agreement is
Bk. V, Rule VIII, SEC. 1. Who may file. infra p. 46 registered, the petition may be filed only within sixty (60) days
prior to its expiry."
a. Organized Establishment
Bk. V, Rule VIII, SEC. 13, Par. 1. Order/Decision on the petition.
LC, Art. 262, supra p. 43 - Within ten (10) days from the date of the last hearing, the
Mediator-Arbiter shall formally issue a ruling granting or
LC, Art. 259. Duty to bargain collectively when there exists a denying the petition, except in organized establishments
collective bargaining agreement. - When there is a collective where the grant of the petition can only be made after the
bargaining agreement, the duty to bargain collectively shall lapse of the freedom period.
UP LAW C2017 LABOR 2 (PROF. DAWAY) MIDTERMS REVIEWER | 46

ATLANTIC GULF AND PACIFIC CO. MANILA INC. v. A national union or federation filing a petition in behalf of its
LAGUESMA (1992) local/chapter shall not be required to disclose the names of
D: Existing CBA with the ER and the SEBA bars any other labor the local/chapter’s officers and members, but shall attach to
organization from filing a petition for certification election the petition the charter certificate it issued to its local/chapter.
except within the 60-day period prior to the expiration of the
CBA. When requested to bargain collectively in a bargaining unit
where no registered collective bargaining agreement exists, an
F: Atlantic Gulf has an existing CBA with URFA, the SEBA of all employer may file a petition for certification election with the
RAF employees of Atlantic Gulf. Another union, LAKAS-NFL, Regional Office. If there is no existing registered collective
filed a PCE with the BLR to be certified as the SEBA of all non- bargaining agreement in the bargaining unit, the Regional
regular project employees which the DOLE approved. Atlantic Office shall, after hearing, order the conduct of a certification
Gulf appealed the approval of the PCE. Subsequently, 691 of election.
the employees which LAKAS-NFL sought to represent were
regularized. The remaining employees who weren’t DHL PHIL. CORP. UNITED RAF ASSOCIATION-FFW v. BUKLOD
regularized staged a strike. Atlantic Gulf, in a conciliation NG MANGGAGAWA (2004)
proceeding, regularized the remaining employees provided D: A certification election may be set aside for misstatements
that they rendered a service of at least one year. made during the campaign where: 1) a material fact has been
Subsequently, the first set of regularized employees were misrepresented in the campaign; 2) an opportunity for reply
admitted to URFA. Atlantic Gulf appealed the decision of the has been lacking; and 3) the misrepresentation has had an
DOLE, stating that the bargaining unit which LAKAS-NFL impact on the free choice of the employees participating in the
sought to represent ceased to exist following the election.
regularization of employees.
F: Officers of petitioner allegedly misrepresented that it is an
H: The existence of a duly registered CBA between the Atlantic independent union prior to the certification election.
Gulf and URFA, which is the sole and exclusive bargaining
representative of all the regular RAF employees of the H: The fact that the officers of petitioner especially its
petitioner including the regular project employees with more president, misrepresented it to the voting employees as an
than one year of service, bars any other labor organization independent union constituted a substantial
from filing a petition for certification election except within the misrepresentation of material facts of vital concern to those
60-day period prior to the expiration of the CBA. employees.

ii) Petition Beyond Freedom Period 3) Form of Petition


• in writing
NATIONAL CONGRESS OF UNIONS IN THE SUGAR INDUSTRY • verified under oath
v. FERRER-CALLEJA (1992) o by president of filing LO
D: Petitions filed beyond the freedom period should be o by president/ authorized representative of
dismissed outright. filing national union/ federation
o owner/president/authorized officer of ER
F: One year after expiry of the CBA and after NFSW had a
deadlock on the extended CBA with company, NACUSIPTUCP Bk. V, Rule VIII, SEC. 4. Form and contents of petition. - The
filed a petition for certificate election. NFSW filed a motion to petition shall be in writing, verified under oath by the president
dismiss for being filed beyond the freedom period. of petitioning labor organization. Where a federation or
national union files a petition in behalf of its local or affiliate,
H: Having been filed outside the 60day freedom period or a the petition shall be verified under oath by the president or its
period of more than one (1) year after the CBA expired, the duly authorized representative of the federation or national
petition for certification election should have been dismissed union. In case the employer files the petition, the owner,
outright. The purpose, obviously, is to ensure stability in the president or any corporate officer, who is authorized by the
relationships of the workers and the management by Board of Directors, shall verify the petition. The petition shall
preventing frequent modifications of any collective bargaining contain the following:
agreement earlier entered into by them in good faith and for a) the name of petitioner, its address, and affiliation if
the stipulated original period. appropriate, the date and number of its certificate of
registration. If the petition is filed by a federation or
2) Filing Party national union, the national president or his/her duly
authorized representative shall certify under oath as to the
Who may file? existence of its local/chapter in the establishment and
1. Any legitimate labor organization attaching thereto the charter certificate or a certified true
• including a national union/ federation that has issued copy thereof. If the petition is filed by a local/chapter, it
a charter certificate to the local, or the local itself shall attach its charter certificate or a certified true copy
2. Employer, when requested to bargain collectively in a thereof;
bargaining unit where no registered CBA exists. b) the name, address and nature of employer's business;
Note: Bystander rule, infra p. 48 c) the description of the bargaining unit;
d) the approximate number of employees in the bargaining
Bk. V, Rule VIII, SEC. 1. Who may file. - Any legitimate labor unit;
organization, including a national union or federation that has e) the names and addresses of other legitimate labor unions
issued a charter certificate to its local/chaper or the in the bargaining unit;
local/chapter itself, may file a petition for certification election. f) a statement indicating any of the following
UP LAW C2017 LABOR 2 (PROF. DAWAY) MIDTERMS REVIEWER | 47

circumstances: petition. - II. The Med-Arbiter shall dismiss the petition on any
(1) that the bargaining unit is unorganized or that there is of the following grounds: (e) In case of an organized
no registered collective bargaining agreement covering the establishment, failure to submit the twenty-five percent (25%)
employees in the bargaining unit; support requirement upon the filing of the petition;
(2) if there exists a duly registered collective bargaining
agreement, that the petition is filed within the sixty-day ORIENTAL TIN CAN LABOR UNION v. SEC OF LABOR (1998)
freedom period of such agreement; or D: Once the required percentage requirement has been
(3) if another union had been previously recognized reached, employees’ withdrawal from union membership after
voluntarily or certified in a valid certification, consent or the filing of the petition for certification election will not affect
run-off election, that the petition is filed outside the one- the petition.
year period from date of recording of such voluntary
recognition or conduct of certification or run-off election F: OCTWU-FFW filed a petition for certification election
and no appeal is pending thereon. accompanied by the “authentic signatures” of 25% of the
g) in an organized establishment, the signature of at least employees/workers in the bargaining unit. OCTLU opposed
twenty-five percent (25%) of all employees in the because some of the employees who initially signed the
appropriate bargaining unit shall be attached to the petition had allegedly withdrawn in writing such support prior
petition at the time of its filing; and to the filing.
h) other relevant facts.
H: 25% requirement under Art. 256 (now 262) was met. The
NATIONAL MINES AND ALLIED WORKERS UNION v. SEC. OF requirement is a mere technicality and the withdrawal from
LABOR (1993) union membership after the filing will not affect the petition.
D: Technical rules of procedure are generally not binding in
labor cases especially in certification elections, which are PORT WORKERS UNION v. DOLE (1992)
non-litigious but merely investigative and non-adversarial in D: The administrative rule requiring the simultaneous
character. submission of the 25% consent signatures upon filing of
petition for certification election should not be strictly applied
F: 38 days before expiration of CBA, FFW-SMQCC filed a to frustrate the determination of the legitimate representative
petition for certification election which was opposed by of the workers. Mere filing of a petition for certification
NAMAWU on the ground that the required consent of 25% was election within freedom period is sufficient basis for the
not met, petition wasn’t verified, and that De Pedro had no issuance of an order for the holding of a certification election,
personality to file the petition. subject to submission of the consent signatures within a
reasonable period from filing.
H: Although De Pedro was president of NAMAWU, he had
already disaffiliated with it and joined FFW. Verifcation is a F: SAMADA submitted consent signatures (25%) 11 days after
formal, not jurisdictional requirement which defect will nullify filing petition for certification election. PEALU submitted
petition. Technical rules of procedure are generally not consent signatures 35 days after filing petition.
binding in labor cases especially in certification elections,
which are non-litigous but merely investigative and non- H: Dismissal of petition for non-compliance with 25% consent
adversarial in character. Removing the 49 allegedly signatures was incorrect.
falsified/disowned signatures supporting the petition, there
were still a total of 92 employees, out of 300 sought to be 5) Effect of Members’ Retraction on Petition
represented. Hence, 25% requirement was still met. On the
issue of its being “undated”, what’s important is that it was EAGLE RIDGE GOLF AND COUNTRY CLUB v. CA (2010)
filed during the freedom period and the 25% was met. D: Withdrawal after filing PCE is deemed involuntary and does
not affect the cert. elec. Withdrawal of union membership
4) Substantial Support/ Simultaneous Submission (directory) does not affect union registration.
• Not found in Art. 262, so at best, it should be given
only a directory effect. [Port Workers Union v. DOLE] F: Eagle Ridge Employees organized a union then filed a
petition for certification election after registering with DOLE.
LC, Art. 262, supra p. 43 Eagle Ridge alleged that there was fraud wrt the number of
members, because 6 employees expressed desire to withdraw
Bk. V, Rule VIII, Sec. 4(g), supra from the union. Without them, union does not fulfill 20%
requirement under Art 234(c).
Bk. V, Rule VIII, Sec. 14(e). Denial of the petition; Grounds. -
The Mediator-Arbiter may dismiss the petition on any of the H: Withdrawal of six member­employees from the Union
following grounds: (e) Where a duly certified union has affects neither Union’s registration nor its petition for
commenced and sustained negotiations with the employer in certification election, as their affidavits of retraction were
accordance with Article 250 of the Labor Code within the one- executed after the Union’s petition for certification election
year period referred to in Section 14.d of this Rule, in case of had been filed.
an organized establishment, or where there exists a bargaining
deadlock which has been submitted to conciliation or 6) Forced Intervention/Motion for Intervention
arbitration failure of has become the subject of a valid notice
Book V, Rule VIII
of strike or lockout where an incumbent or certified bargaining
Section 7. Forced Intervenor. - The incumbent bargaining
agent is a party
agent shall automatically be one of the choices in the
certification election as forced intervenor.
1997 Impl. Rules - Rule XI, SEC. 11, ll (e). Action on the
UP LAW C2017 LABOR 2 (PROF. DAWAY) MIDTERMS REVIEWER | 48

Art. 264-A. Employer as Bystander. – In all cases, whether the


Section 8. Motion for Intervention. - When a petition for petition for certification election is filed by an employer or a
certification election was filed in an organized establishment, legitimate labor organization, the employer shall not be
any legitimate labor union other than the incumbent considered a party thereto with a concomitant right to oppose
bargaining agent operating within the bargaining unit may file the petition for certification election. The employer’s
a motion for intervention with the Med-Arbiter during the participation in such proceedings shall be limited to: 1) being
freedom period of the collective bargaining agreement. The notified or informed of petitions of such nature; and 2)
form and contents of the motion shall be the same as that of a submitting the list of employees during the pre-election
petition for certification election. conference should be the Med-Arbiter act favorably on the
petition (As amended by Rep. Act 9481)
In an unorganized establishment, the motion shall be filed at
any time prior to the decision of the Med-Arbiter. The form and Book V, Rule VIII Sec 1. (par 2) A national union or federation
contents of the motion shall likewise be the same as that of a filing a petition in behalf of it local/chapter shall not be
petition for certification election. The motion for intervention required to diclose the names of the local/chapter’s officers
shall be resolved in the same decision issued in the petition for and members, but shall attach to the petition the charter
certification election. certificate it issued to its local/chapter.

PHIL ASSN OF FREE LABOR UNION v. CALLEJA (1989) HERCULES INDUSTRIES INC v. SEC OF LABOR (1992)
D: The 20% requirement is peculiar to petitions for certification D: Employer is not a party to a certification election, which is
election. the sole/exclusive concern of the workers. In the choice of
their collective bargaining representative, the employer is an
F: Samahan filed a petition for certification election. PAFLU intruder. Only instance it may be involved: obliged to file a
filed a motion to intervene, accompanied by a written consent petition for certification election in behalf of workers.
of 20% of the R&F employees of HICC. KAMAPI likewise filed
its motion to intervene, but unaccompanied by a similar F: Following a certification election, Hercules Industries, Inc.,
written consent. filed an appeal alleging several procedural infirmities in the
conduct of said certification election.
H: Requisite written consent does not apply to motion for
intervention. KAMAPI was allowed to participate in the H: Employer is not allowed to question validity of certification
certification election. election of R&F employees.

b. Unorganized Establishment PHIL SCOUTS ETC v. TORRES (1993)


D: Employer’s role in a certification election is that of a mere
LC, Art. 248, supra p. 22 bystander. It has no legal standing in a certification election
as it cannot oppose the petition or appeal the MedArbiter's
LC, Art. 263. Petitions in unorganized establishments. In any orders related thereto.
establishment where there is no certified bargaining agent, a
certification election shall automatically be conducted by the F: Labor Union filed a petition for Certification Election among
Med-Arbiter upon the filing of a petition by a legitimate labor the employees of three security agencies that they collectively
organization. called PGA. The agencies allege that they are three separate
and distinct entities.
LC, Art. 264. When an employer may file petition. When
requested to bargain collectively, an employer may petition the H: They are in a single business entity so no need to file 3
Bureau for an election. If there is no existing certified collective separate petitions. Except where employer has to file a
bargaining agreement in the unit, the Bureau shall, after petition for certification election because of a request to
hearing, order a certification election. bargain collectively, it has nothing to do with a certification
election, which is the sole concern of the workers.
All certification cases shall be decided within twenty (20)
working days. 3. Grounds for Denial of the Petition

The Bureau shall conduct a certification election within twenty The Med-Arbiter may dismiss on the ff. grounds:
(20) days in accordance with the rules and regulations 1. Petitioner not listed in the registry, or legal personality has
prescribed by the Secretary of Labor. been revoked/cancelled
2. Contract bar rule
Book V, Rule I 3. One year bar/ recognition or certification bar rule
Sec 1 (ll). “Organized Establishment” refers to an enterprise 4. Negotiation bar rule
where there exists a recognized or certified sole and exclusive 5. Failure to submit 25% support requirement
bargaining agent.
Book V, Rule VIII
2. The Employer as Initiating Party/Bystander Rule Section 14. Denial of the petition; Grounds. - The Med-Arbiter
may dismiss the petition on any of the following grounds:
ER's participation in cert. election proceedings limited to:
1. being notified or informed of petitions (a) the petitioner is not listed in the Department's registry of
2. submitting the list of EEs during pre-election conference legitimate labor unions or that its legal personality has been
revoked or cancelled with finality in accordance with Rule XIV
LC, Art. 264, supra of these Rules;
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days from the date of the last hearing, the Med-Arbiter shall
(b) the petition was filed before or after the freedom period of a issue a formal order granting the petition or a decision denying
duly registered collective bargaining agreement; provided that the same. In organized establishments, however, no order or
the sixty-day period based on the original collective bargaining decision shall be issued by the Med-Arbiter during the freedom
agreement shall not be affected by any amendment, extension period.
or renewal of the collective bargaining agreement;
The order granting the conduct of a certification election shall
(c) the petition was filed within one (1) year from entry of state the following:
voluntary recognition or a valid certification, consent or run-off (a) the name of the employer or establishment;
election and no appeal on the results of the certification, (b) the description of the bargaining unit;
consent or run-off election is pending; (c) a statement that none of the grounds for dismissal
enumerated in the succeeding paragraph exists;
(d) a duly certified union has commenced and sustained (d) the names of contending labor unions which shall appear
negotiations with the employer in accordance with Article 250 as follows: petitioner union/s in the order in which their
of the Labor Code within the one-year period referred to in petitions were filed, forced intervenor, and no union; and
Section 14.c of this Rule, or there exists a bargaining deadlock (e) a directive upon the employer and the contending union(s)
which had been submitted to conciliation or arbitration or had to submit within ten (10) days from receipt of the order,
become the subject of a valid notice of strike or lockout to the certified list of employees in the bargaining unit, or
which an incumbent or certified bargaining agent is a party; where necessary, the payrolls covering the members of
the bargaining unit for the last three (3) months prior to
(e) in case of an organized establishment, failure to submit the the issuance of the order.
twenty-five percent (25%) support requirement for the filing of
the petition for certification election. Section 14, supra p. 48
Section 15, supra
4. Prohibited Grounds for Denial
6. Requisites for Validity of Election/Failure of Election
Book V, Rule VIII
Section 15. Prohibited grounds for the denial/suspension of LC, Art. 262, supra p. 43
the petition. - All issues pertaining to the existence of
employer-employee relationship, eligibility or mixture in union Book V, Rule I
membership raised before the Med-Arbiter during the Sec 1, (q) "Mobilization fee" means the amount charged by a
hearing(s) and in the pleadings shall be resolved in the same licensee or authority holder from its foreign employer-
order or decision granting or denying the petition for principal/partner to cover costs of recruitment, processing and
certification election. Any question pertaining to the validity of documentation of its recruits for overseas employment.
petitioning union's certificate of registration or its legal
personality as a labor organization, validity of registration and Rule IX
execution of collective bargaining agreements shall be heard Section 17. Failure of election. - Where the number of votes
and resolved by the Regional Director in an independent cast in a certification or consent election is less than the
petition for cancellation of its registration and not by the Med- majority of the number of eligible voters and there are no
Arbiter in the petition for certification election, unless the material challenged votes, the Election Officer shall declare a
petitioning union is not found in the Department's roster of failure of election in the minutes of the election proceedings.
legitimate labor organizations or an existing collective
bargaining agreement is unregistered with the Department. Section 18. Effect of failure of election. - A failure of election
shall not bar the filing of a motion for the immediate holding of
5. Responsible Agency another certification or consent election within six (6) months
from date of declaration of failure of election.
LC, Art. 232, supra p. 40
Section 19. Action on the motion. - Within twenty-four (24)
LC, Art. 238, supra p. 41 hours from receipt of the motion, the Election Officer shall
immediately schedule the conduct of another certification or
LC, Art. 262, supra p. 43 consent election within fifteen (15) days from receipt of the
motion and cause the posting of the notice of certification
LC, Art. 263, supra p. 48 election at least ten (10) days prior to the scheduled date of
election in two (2) most conspicuous places in the
LC, Art. 265. Appeal from certification election orders. Any establishment. The same guidelines and list of voters shall be
party to an election may appeal the order or results of the used in the election
election as determined by the Med-Arbiter directly to the
Secretary of Labor and Employment on the ground that the BENGUET ELECTRIC COOP INC v. CALLEJA (1989)
rules and regulations or parts thereof established by the D: The right to collective bargaining is not available to an
Secretary of Labor and Employment for the conduct of the employee of a cooperative who, at the same time, is a member
election have been violated. Such appeal shall be decided and co-owner thereof.
within fifteen (15) calendar days. (As amended by Section 25,
Republic Act No. 6715, March 21, 1989). F: A certification election was won by BELU. BENECO
contends that the employees who voted were
Book V, Rule VIII members/owners of the cooperative – thus, the certification
Section 13. Order/Decision on the petition. - Within ten (10) election was null and void for allowing non-qualified
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employees to vote. the notice of preliminary conference and petition for


certification election shall be posted in at least two
H: upheld BENECO’s claim and declared that the certification conspicuous places in the establishment.
election was void.
Sections 7-8, supra pp. 47-48
a. Double Majority Rule
Section 9. Preliminary Conference; Hearing. - The Med-Arbiter
1. Majority of the bargaining unit must have voted; AND shall conduct a preliminary conference and hearing within ten
2. The winning union must have garnered majority of the (10) days from receipt of the petition to determine the
valid votes cast. following:
(a) the bargaining unit to be represented;
NUWHRAI-MANILA PAVILION HOTEL CHAPTER (b) contending labor unions;
v. SEC OF LABOR (2009) (c) possibility of a consent election;
D: Double majority rule – For a valid cert elec, majority of the (d) existence of any of the bars to certification election under
bargaining unit must have voted AND winning union must Section 3 of this Rule; and
have garnered majority of the valid votes cast. (e) such other matters as may be relevant for the final
disposition of the case.
F: A certification election was conducted among the R&F
employees of Holiday Inn Manila Pavilion Hotel. Out of the 353 Section 10. Consent Election; Agreement. - In case the
employees in the voters list, NUWHRAIN received 151 while contending unions agree to a consent election, the Med-
HIMPHLU garnered 169. NUWHRAIN filed a petition praying Arbiter shall not issue a formal order calling for the conduct of
for the opening of the segregated ballots and that HIMPHLU certification election, but shall enter the fact of the agreement
not be declared as the sole and bargaining unit. in the minutes of the hearing. The minutes of the hearing shall
be signed by the parties and attested to by the Med-Arbiter.
H: Only those votes cast by probationary employees should be The Med-Arbiter shall, immediately thereafter, forward the
opened while declaring that a run-off election is in order since records of the petition to the Regional Director or his/her
HIMPHLU did not obtain the required majority vote. authorized representative for the determination of the Election
Officer by the contending unions through raffle. The first pre-
7. Nature of Proceeding election conference shall be scheduled within ten (10) days
from the date of entry of agreement to conduct consent
election.
PORT WORKERS UNION v. DOLE (1992) supra p. 48
D: The certification election is not litigation but a mere Section 11. Number of Hearings; Pleadings. - If the contending
investigation of a non-adversary character where the rules of unions fail to agree to a consent election during the
procedure are not strictly applied. preliminary conference, the Med-Arbiter may conduct as many
hearings as he/she may deem necessary, but in no case shall
8. Certification Election – Process and Procedure the conduct thereof exceed fifteen (15) days from the date of
the scheduled preliminary conference/ hearing, after which
Book V, Rule VIII: CERTIFICATION ELECTION time the petition shall be considered submitted for decision.
The Med-Arbiter shall have control of the proceedings.
Section 1. Who may file. - supra p. 46 Postponements or continuances shall be discouraged.

Section 2. Where to file; Section 3. When to file. - supra p. 45 Within the same 15-day period within which the petition is
heard, the contending labor unions may file such pleadings as
Section 4. Form and contents of petition. - supra p. 47 they may deem necessary for the immediate resolution of the
petition. Extensions of time shall not be entertained. All
Section 5. Raffle of the case. - Upon the filing of the petition, motions shall be resolved by the Med-Arbiter in the same
the Regional Director or any of his/her authorized order or decision granting or denying the petition.
representative shall allow the party filing the petition to
personally determine the Med-Arbiter assigned to the case by Section 12. Failure to appear despite notice. - The failure of
means of a raffle. Where there is only one Med-Arbiter in the any party to appear in the hearing(s) when notified or to file its
region, the raffle shall be dispensed with and the petition shall pleadings shall be deemed a waiver of its right to be heard.
be assigned to him/her. The Med-Arbiter, however, when agreed upon by the parties for
meritorious reasons may allow the cancellation of scheduled
Section 6. Notice of preliminary conference. - Immediately hearing(s). The cancellation of any scheduled hearing(s) shall
after the raffle of the case or receipt of the petition, the same not be used as a basis for extending the 15-day period within
shall be transmitted to the Med-Arbiter, who shall in the same which to terminate the same.
instance prepare and serve upon the petitioning party a notice
for preliminary conference. The first preliminary conference Sections 13-15, supra p. 49
shall be scheduled within ten (10) days from receipt of the
petition. Section 16. Release of Order/Decision within ten (10) days
from the last hearing - The Med-Arbiter shall release his/her
Within three (3) days from receipt of the petition, the Med- order or decision granting or denying the petition personally to
Arbiter shall cause the service of notice for preliminary the parties on an agreed date and time.
conference upon the employer and incumbent bargaining
agent in the subject bargaining unit directing them to appear Section 17. Appeal. - The order granting the conduct of a
before him/her on a date, time and place specified. A copy of
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certification election in an unorganized establishment shall not Section 24. Effects of early agreements. - The representation
be subject to appeal. Any issue arising therefrom may be case shall not be adversely affected by a collective bargaining
raised by means of protest on the conduct and results of the agreement registered before or during the last sixty (60) days
certification election. of a subsisting agreement or during the pendency of the
The order granting the conduct of a certification election in an representation case.
organized establishment and the decision dismissing or Section 25. Non-availability of Med-Arbiter. - Where there is
denying the petition, whether in an organized or unorganized no Med-Arbiter available in the Regional Office by reason of
establishment, may be appealed to the Office of the Secretary vacancy, prolonged absence, or excessive workload as
within ten (10) days from receipt thereof. determined by the Regional Director, he/she shall transmit the
entire records of the case to the Bureau, which shall within
The appeal shall be verified under oath and shall consist of a forty-eight (48) hours from receipt assign the case to any
memorandum of appeal, specifically stating the grounds relied Med-Arbiter from any of the Regional Offices or from the
upon by the appellant with the supporting arguments and Bureau.
evidence.
Book V, Rule IX: CONDUCT OF CERTIFICATION ELECTION
Section 18. Where to file appeal. - The memorandum of appeal
shall be filed in the Regional Office where the petition Section 1. Raffle of the case. - Within twenty-four (24) hours
originated, copy furnished the contending unions and the from receipt of the notice of entry of final judgment granting
employer, as the case may be. Within twenty-four (24) hours the conduct of a certification election, the Regional Director
from receipt of the appeal, the Regional Director shall cause shall cause the raffle of the case to an Election Officer who
the transmittal thereof together with the entire records of the shall have control of the pre-election conference and election
case to the Office of the Secretary. proceedings.

Section 19. Finality of Order/Decision. - Where no appeal is Section 2. Pre-election conference. - Within twenty-four (24)
filed within the ten-day period, the Med-Arbiter shall enter the hours from receipt of the assignment for the conduct of a
finality of the order/decision in the records of the case and certification election, the Election Officer shall cause the
cause the transmittal of the records of the petition to the issuance of notice of pre-election conference upon the
Regional Director. contending unions and the employer, which shall be scheduled
within ten (10) days from receipt of the assignment.
Section 20. Period to Reply. - A reply to the appeal may be
filed by any party to the petition within ten (10) days from The pre-election conference shall set the mechanics for the
receipt of the memorandum of appeal. The reply shall be filed election and shall determine, among others, the following:
directly with the Office of the Secretary. a. date, time and place of the election, which shall not be
later than forty-five (45) days from the date of the first
Section 21. Decision of the Secretary. - The Secretary shall pre-election conference, and shall be on a regular working
have fifteen (15) days from receipt of the entire records of the day and within the employer's premises, unless
petition within which to decide the appeal. The filing of the circumstances require otherwise;
memorandum of appeal from the order or decision of the Med- b. list of eligible and challenged voters;
Arbiter stays the holding of any certification election. c. number and location of polling places or booths and the
number of ballots to be prepared with appropriate
The decision of the Secretary shall become final and executory translations, if necessary;
after ten (10) days from receipt thereof by the parties. No d. name of watchers or representatives and their alternates
motion for reconsideration of the decision shall be entertained. for each of the parties during election;
e. mechanics and guidelines of the election.
Section 22. Transmittal of records to the Regional Office. -
Within forty-eight (48) hours from notice of receipt of decision Section 3. Waiver of right to be heard. - Failure of any party to
by the parties and finality of the decision, the entire records of appear during the pre-election conference despite notice shall
the case shall be remanded to the Regional Office of origin for be considered as a waiver to be present and to question or
implementation. Implementation of the decision shall not be object to any of the agreements reached in said pre-election
stayed unless restrained by the appropriate court. conference. Nothing herein, however, shall deprive the non-
appearing party or the employer of its right to be furnished
Section 23. Effects of consent election. - Where a petition for notices of subsequent pre-election conferences and to attend
certification election had been filed, and upon the intercession the same.
of the Med-Arbiter, the parties agree to hold a consent
election, the results thereof shall constitute a bar to the Section 4. Minutes of pre-election conference. - The Election
holding of a certification election for one (1) year from the Officer shall keep the minutes of matters raised and agreed
holding of such consent election. Where an appeal has been upon during the pre-election conference. The parties shall
filed from the results of the consent election, the running of the acknowledge the completeness and correctness of the entries
one-year period shall be suspended until the decision on in the minutes by affixing their signatures thereon. Where any
appeal has become final and executory. of the parties refuse to sign the minutes, the Election Officer
shall note such fact in the minutes, including the reason for
Where no petition for certification election was filed but the refusal to sign the same. In all cases, the parties shall be
parties themselves agreed to hold a consent election with the furnished a copy of the minutes.
intercession of the Regional Office, the results thereof shall
constitute a bar to another petition for certification election. The pre-election conference shall be completed within thirty
(30) days from the date of the first hearing.
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the voter and the company;


Section 5. Qualification of voters; inclusion-exclusion. - All (f) that the voter is not a member of the appropriate
employees who are members of the appropriate bargaining bargaining unit which petitioner seeks to represent.
unit sought to be represented by the petitioner at the time of
the issuance of the order granting the conduct of a Section 11. Procedure in the challenge of votes. - When a vote
certification election shall be eligible to vote. An employee who is properly challenged, the Election Officer shall place the
has been dismissed from work but has contested the legality ballot in an envelope which shall be sealed in the presence of
of the dismissal in a forum of appropriate jurisdiction at the the voter and the representatives of the contending unions and
time of the issuance of the order for the conduct of a employer. The Election Officer shall indicate on the envelope
certification election shall be considered a qualified voter, the voter's name, the union or employer challenging the voter,
unless his/her dismissal was declared valid in a final judgment and the ground for the challenge. The sealed envelope shall
at the time of the conduct of the certification election. then be signed by the Election Officer and the representatives
of the contending unions and employer. The Election Officer
In case of disagreement over the voters' list or over the shall note all challenges in the minutes of the election and
eligibility of voters, all contested voters shall be allowed to shall be responsible for consolidating all envelopes containing
vote. But their votes shall be segregated and sealed in the challenged votes. The envelopes shall be opened and the
individual envelopes in accordance with Sections 10 and 11 of question of eligibility shall be passed upon only if the number
this Rule. of segregated voters will materially alter the results of the
election.
Section 6. Posting of Notices. - The Election Officer shall
cause the posting of notice of election at least ten (10) days Section 12. On-the-spot questions. - The Election Officer shall
before the actual date of the election in two (2) most rule on any question relating to and raised during the conduct
conspicuous places in the company premises. The notice shall of the election. In no case, however, shall the election officer
contain: rule on any of the grounds for challenge specified in the
(a) the date and time of the election; immediately preceding section.
(b) names of all contending unions;
(c) the description of the bargaining unit and the list of eligible Section 13. Protest; when perfected. - Any party-in-interest
and challenged voters. may file a protest based on the conduct or mechanics of the
election. Such protests shall be recorded in the minutes of the
The posting of the notice of election, the information required election proceedings. Protests not so raised are deemed
to be included therein and the duration of posting cannot be waived.
waived by the contending unions or the employer.
The protesting party must formalize its protest with the Med-
Section 7. Secrecy and sanctity of the ballot. - To ensure Arbiter, with specific grounds, arguments and evidence, within
secrecy of the ballot, the Election Officer, together with the five (5) days after the close of the election proceedings. If not
authorized representatives of the contending unions and the recorded in the minutes and formalized within the prescribed
employer, shall before the start of the actual voting, inspect period, the protest shall be deemed dropped.
the polling place, the ballot boxes and the polling booths.
Section 14. Canvassing of votes. - The votes shall be counted
Section 8. Preparation of ballots. - The Election Officer shall and tabulated by the Election Officer in the presence of the
prepare the ballots in English and Filipino or the local dialect, representatives of the contending unions. Upon completion of
corresponding to the number of voters and a reasonable the canvass, the Election Officer shall give each representative
number of extra ballots. All ballots shall be signed at the back a copy of the minutes of the election proceedings and results
by the Election Officer and authorized representative of each of of the election. The ballots and the tally sheets shall be sealed
the contending unions and employer. Failure or refusal to sign in an envelope and signed by the Election Officer and the
the ballots shall be considered a waiver thereof and the representatives of the contending unions and transmitted to
Election Officer shall enter the fact of such refusal or failure in the Med-Arbiter, together with the minutes and results of the
the records of the case as well as the reason for the refusal or election, within twenty-four (24) hours from the completion of
failure to sign. the canvass.

Section 9. Marking of votes. - The voter must put a cross ( x ) Where the election is conducted in more than one region,
or check (✓) mark in the square opposite the name of the consolidation of results shall be made within fifteen (15) days
union of his choice or "No Union" if he/she does not want to be from the conduct thereof.
represented by any union
Section 15. Conduct of election and canvass of votes. - The
If a ballot is torn, defaced or left unfilled in such a manner as to election precincts shall open and close on the date and time
create doubt or confusion or to identify the voter, it shall be agreed upon during the pre-election conference. The opening
considered spoiled. If the voter inadvertently spoils a ballot, and canvass shall proceed immediately after the precincts
he/she shall return it to the Election Officer who shall destroy it have closed. Failure of any party or the employer or
and give him/her another ballot. his/her/their representative to appear during the election
proceedings shall be considered a waiver to be present and to
Section 10. Challenging of votes. - An authorized question the conduct thereof.
representative of any of the contending unions and employer
may challenge a vote before it is deposited in the ballot box Section 16. Certification of Collective Bargaining Agent. - The
only on any of the following grounds: union which obtained a majority of the valid votes cast shall be
(e) that there is no employer-employee relationship between certified as the sole and exclusive bargaining agent of all the
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employees in the appropriate bargaining unit within five (5) b. Posting Notice
days from the day of the election, provided no protest is
recorded in the minutes of the election. When? At least 10 days before date of election
Where? 2 most conspicuous places in company premises
Sections 17-19, supra p. 49 What? (a) the date and time of the election;
(b) names of all contending unions;
Section 20. Proclamation and certification of the result of the (c) the description of the bargaining unit and the
election. - Within twenty-four (24) hours from final canvass of list of eligible and challenged voter
votes, there being a valid election, the Election Officer shall The posting of the notice of election, the information required
transmit the records of the case to the Med-Arbiter who shall, to be included therein and the duration of posting CANNOT BE
within the same period from receipt of the minutes and results WAIVED by the contending unions or the employer.
of election, issue an order proclaiming the results of the
election and certifying the union which obtained a majority of Book V, Rule 1, Sec 1 (o) "Election Officer” refers to an officer
the valid votes cast as the sole and exclusive bargaining agent of the Bureau or Labor Relations Division in the Regional Office
in the subject bargaining unit, under any of the following authorized to conduct certification elections, election of union
conditions: officers and other forms of elections and referenda in
accordance with Rule XII, Sec 2-5 of these Rules.
(a) no protest was filed or, even if one was filed, the same was
not perfected within the five-day period for perfection of the Book V, Rule IX, Sec 6, supra p. 52
protest;
JISSCOR INDEPENDENT UNION v. TORRES (1993)
(b) no challenge or eligibility issue was raised or, even if one
D: Waiver of posting notice covered by doctrine of estoppel.
was raised, the resolution of the same will not materially
change the results of the elections.
F: Two unions and management entered into an agreement
setting the date and time of the certification election and
The winning union shall have the rights, privileges and waiving the mandatory 5-day posting requirement. After the
obligations of a duly certified collective bargaining agent from election, the losing union filed a protest citing, among others,
the time the certification is issued. the lack of posting.
Where majority of the valid votes cast results in "No Union"
H: Losing union estopped from raising the issue because 1) it
obtaining the majority, the Med-Arbiter shall declare such fact
was not indicated in the minutes, and 2) it entered into the
in the order.
agreement.
a. Effect of Private Agreement
c. Voter’s List
Any agreement which impairs the freedom of the workers to
voice out their choice of the union to represent them shall not
Employees who are members of the
be upheld. (PLUM Federation v. Noriel)
appropriate bargaining unit sought to be
ELIGIBLE represented by the petitioner at the time of the
PLUM FEDERATION OF INDUSTRIAL AND AGRARIAN
issuance of the order granting the conduct of a
WORKERS v. NORIEL (1982)
certification election.
D: In case of doubt as to the required number having met, An employee who has been dismissed from
there would be no better way to ascertain which union really work but has contested the legality of the
commands the allegiance of the R&F workers than the holding dismissal at the time of the issuance of the
of a certification election. order for the conduct of a certification election,
unless his/her dismissal was declared valid in
F: PLUM Federation and PTGWO are members of the Trade a final judgment at the time of the conduct of
Union Congress of the Philippines. PLUM filed for cert elec for QUALIFIED
the certification election.
R&F employees of the Manila Jockey Club Inc. PTGWO - Employees illegally dismissed are still eligible
intervened, alleging a violation the “No Union Raiding Clause” to vote until either the motion to declare their
of the TUCP Code of Ethics and PLUM’s failure to meet the employment status legally terminates or the
minimum number of required R&F workers. compliant for illegal dismissal is resolved by
the NLRC. (R. Transport Corp. v. Laguesma)
H: Ordered certification election, saying that a certification One whose votes are being challenged on the
election is the fairest and most effective way of determining following grounds:
which labor organization can truly represent the working (a) that there is no ER-EE relationship between
force.
the voter and the company.
(b) that the voter is not a member of the
appropriate bargaining unit which petitioner
CONTESTED seeks to represent.
Shall be allowed to vote, but their votes shall
be segregated and sealed in individual
envelopes. The envelopes shall be opened and
the question of eligibility shall be passed upon
only if the number of segregated voters will
materially alter the results of the election.
UP LAW C2017 LABOR 2 (PROF. DAWAY) MIDTERMS REVIEWER | 54

Book V, Rule IX, Sec 5, supra p. 52 contested by the ER for being cast after their dismissal.
Book V, Rule I, Sec 1 (q), supra p. 49
H: Votes should be considered. Section 2, Rule XII of the
R. TRANSPORT CORP v. LAGUESMA (1993) Omnibus Rules clearly allows such EEs to participate in
D: If dismissal is under question, (i.e. a case of illegal certificate elections.
dismissal and/or unfair labor practices was filed) the
employees concerned could still qualify to vote in the e. Voting Day/Venue
elections.
• Regular working day
F: CLOP filed petition for certification election which was • Not later than 45 days from 1st pre-elec. conference
joined by a petition by NAFLU and ALU-TUCP. R. Transport • Within ER's premises, lest circumstances provide
filed motion to suspend proceedings as there were cases otherwise
involving participation of CLOP members in a strike and/or
their illegal dismissal, which Transport claimed affected their Book V, Rule IX Sec 2, supra p. 52
qualification to vote.
ASIAN DESIGN AND MFG CORP v. DIR CALLEJA AND
H: Dismissed Transport’s petition, as illegally dismissed SOUTHERN PHIL FED. OF LABOR-KMU (1989)
employees are still eligible to vote until the motion to declare D: Certification election and illegal strike are independent
their employment status legally terminates, or the complaint issues. Election shall be set during the regular business day of
for illegal dismissal is resolved by the NLRC. the company unless otherwise agreed upon.

d. Dismissed Employees F: On May 19 (regular business day), factory workers of


ADMACOR held a strike. Company filed petition to declare the
Book V, Rule IX, Sec 5. supra p. 52 certification election as null and void on the ground of the
strike by workers on the day of the certification election. Said
Art 283 (2) Closure of establishment and reduction of day cannot be considered a regular business day as required
personnel. - The employer may also terminate the employment by law.
of any employee due to the installation of labor-saving
devices, redundancy, retrenchment to prevent losses or the H: Denied petition to declare certification election null and
closing or cessation of operation of the establishment or void. Strike did not necessarily make said date an irregular
undertaking unless the closing is for the purpose of business day.
circumventing the provisions of this Title, by serving a written
notice on the workers and the Ministry of Labor and f. Conduct of Election
Employment at least one (1) month before the intended date
thereof. In case of termination due to the installation of labor- • Within 24 hours from receipt of the notice of entry of
saving devices or redundancy, the worker affected thereby final judgment granting the conduct of a certification
shall be entitled to a separation pay equivalent to at least his election, the Regional Director shall cause the raffle of
one (1) month pay or to at least one (1) month pay for every the case to an Election Officer who shall have control
year of service, whichever is higher. In case of retrenchment to of the pre-election conference and election
prevent losses and in cases of closures or cessation of proceedings.
operations of establishment or undertaking not due to serious
• The election precincts shall open and close on the
business losses or financial reverses, the separation pay shall
date and time agreed upon during the pre-election
be equivalent to one (1) month pay or at least one-half (1/2)
conference. The opening and canvass of votes shall
month pay for every year of service, whichever is higher. A
proceed immediately after the precincts have closed.
fraction of at least six (6) months shall be considered one (1)
• Failure of any party or the employer or his/her/their
whole year.
representative to appear during the election
Book V, Rule 2 • Proceedings shall be considered a waiver to be
Sec 2. Who may join labor unions and worker's associations. present and to question the conduct thereon.
xxx Alien employees with valid working permits issued by the
Department may exercise the right to self-organization and Book V, Rule IX, Secs. 1 & 15 supra pp. 51, 52
join or assist labor unions for purposes of collective
bargaining if they are nationals of a country which grants the HERCULES INDUSTRIES INC. v. SEC DOLE (1992) supra p. 48
same or similar rights to Filipino workers, as certified by the D: ER not a party to a certification election, which is the
Department of Foreign Affairs, or which has ratified either ILO sole/exclusive concern of the workers. In the choice of their
Convention No. 87 and ILO Convention No. 93.xxx collective bargaining representative, the employer is an
intruder and only instance it may be involved is when obliged
YOKOHAMA TIRE PHIL v. YOKOHAMA EMPLOYEES UNION to file a petition for certification election in behalf of EEs. After
(2007) order for certification election issues, ER’s involvement ceases
D: A dismissed EE but has contested the legality of dismissal and becomes neutral bystander.
at the time of the issuance of the order for the conduct of a
certification election shall be considered a qualified voter,
unless dismissal was declared valid in a final judgment at the
time of the conduct of the certification election.

F: The votes of 78 EEs in a certification election were being


UP LAW C2017 LABOR 2 (PROF. DAWAY) MIDTERMS REVIEWER | 55

g. Protest Period
H: At the latest, SAMAHAN’s objection to the use of the SSS
CHALLENGING OF VOTES should have been raised during the elections and formalized
Who may Authorized representative of any of the in its election protest.
challenge? contending unions and the employer
Why? • No ER-EE relationship h. Appeal; Period
• Voter not part of the bargaining unit
Procedure • Election Officer shall place the ballot in PETITION GRANTED DISMISSED/DENIED
an envelope which shall be sealed in the UNORGANIZED - Not subj to appeal - May be appealed
presence of the contending unions and - Any issue may be to the Office of the
employer. raised by means of Secretary within 10
• Envelopes shall be opened and the protest on the days from receipt
question of eligibility shall be passed conduct and results
upon only if the number of segregated of the certification
voters will materially alter the results of ORGANIZED May be appealed to May be appealed to
the election. Secretary within 10 Secretary within 10
days from receipt days from receipt
On-the spot questions Who may appeal? Any party to an election
• questions raised during conduct of election Subject of appeal Order or results as determined by M.Arb.
• may be decided by Election Officer (except grounds On what grounds? Rules and regulations for the conduct of
for challenging Votes) elections have been violated
Form of appeal - Verified under oath
PROTEST - consists of a memorandum of appeal,
Who may file? Any party-in-interest specifically stating the grounds relied
Subject Conduct or mechanics of the election upon by the appellant with the
Where to file Med-Arbiter supporting arguments and evidence
Period Within 5 days after the close of the election Where to file - Regional office where the petition
proceedings originated
• The phrase "close of election - Within 24 hours from receipt of appeal,
proceedings" refers to that period from Regional Director shall cause transmittal
the closing of the polls to the counting thereof to the Office of the Secretary
and tabulation of the votes and does not Effect of filing Stays the holding of any certification
cover the period for the final election
determination of the challenged votes Decision of the - 15 days from receipt of entire records
and the canvass thereof. (Phil. Fruits and Secretary - Final and executory 10 days after
Vegetable Industries v. Torres) receipt by the parties
• Grounds of protests not raised before the - No MR shall be entertained
close of the proceedings and duly If no appeal filed Med-Arb shall enter the finality of the
formalized within 5 days after the close order/decision in the records of the case
of the election proceedings are deemed and cause the transmittal of the records
waived. (Samahan ng Manggagawa v. to the Regional Director
Laguesma)
LC, Art. 265, supra p. 49
Book V, Rule IX Secs. 10 – 13 supra p. 52 Book V, Rule VIII, Secs. 17 – 21 supra pp. 50-51

Book v, Rule 1, Sec. 1 (p) "Election Proceedings" refer to the PHIL FRUITS AND VEGETABLE INDUSTRIES INC v. TORRES
period during a certification election, consent or run-off (1992)
election and election of union officers, starting from the D: Requisites
opening to the closing of the polls, including the counting, (1) The protest must be filed with the representation officer
tabulation and consolidation of votes, but excluding the period and made of record in the minutes of the proceedings before
for the final determination of the challenged votes and the the close of election proceedings, and
canvass thereof. (2) The protest must be formalized before the Med-Arbiter
within five (5) days after the close of the election proceedings
SAMAHAN NG MANGGAGAWA v. USEC LAGUESMA AND
MNMPP (1997) F: A certification election was held among the regular and
D: Grounds of protests not raised before the close of the seasonal workers of PFVII subject to challenge with regard to
proceedings and duly formalized within five (5) days after the the qualification to vote of some 194 workers. PFVII filed a
close of the election proceedings are deemed waived. manifestation alleging that the list of eligible voters were
posted a day short of the five-day posting requirement. More
F: Company failed to provide the list of all R&F EEs acc to the than two months after the election was held, PFVII formally
last 3 months’ payroll so list of R&F EEs provided by SSS was filed a Protest.
used in the conduct of a Certification Election. Losing Union,
SAMAHAN, only contested the validity of the SSS list for the H: Protest was filed beyond the reglementary period.
first time in appeal after Med-Arbiter dismissed their election
protest.
UP LAW C2017 LABOR 2 (PROF. DAWAY) MIDTERMS REVIEWER | 56

i. Nullification of Election Results employees. The other workers who are not members are at a
serious disadvantage, because if the same shall be allowed,
UNITED EMPLOYEES UNION OF GELMART INDUSTRIES v. employees who are non-union members will be economically
NORIEL (1975) impaired and will not be able to negotiate their terms and
D: General allegation of duress is not sufficient to invalidate a conditions of work, defeating the purpose of collective
certification election; it must be shown by competent and bargaining.
credible proof.
F. Bars to Certification Election
F: Union seeks to nullify the certificate election due to
procedural infirmities and irregularities i.e. UEUGIP’S name LC, Art. 238—Prohibition on certification election. The Bureau
was willfully deleted and replaced by a non-contending party shall not entertain any petition for certification election or any
Philippine Social Security Labor Union (PSSLU) in notice of other action which may disturb the administration of duly
certificate election and sample ballot. registered existing collective bargaining agreements affecting
H: Cert Elec should not be nullified. The grievance spoken of is the parties except under Articles 253, 253-A and 256 of this
more fancied than real, the assertion of confusion and Code. (also supra p. 41)
demoralization based on conjecture rather than reality
LC, Art. 256—Procedure in Collective Bargaining
The following procedures shall be observed in collective
j. Where no petition for CE is filed: Effect bargaining:

LC, Art. 259, supra p. 45 (a) When a party desires to negotiate an agreement, it shall
LC, Art. 262, supra p. 43 serve a written notice upon the other party with a statement of
its proposals. The other party shall make a reply thereto not
E. Certification of Designated Majority Union later than ten (10) calendar days from receipt of such notice;

Requisites (a) The union must have obtained a majority of (b) Should differences arise on the basis of such notice and
the valid votes cast. reply, either party may request for a conference which shall
(b) No protest was filed or, even if one was filed, begin not later than ten (10) calendar days from the date of
the same was not perfected within the five- request.
day period for perfection of the protest.
(c) No challenge or eligibility issue was raised (c) If the dispute is not settled, the Board shall intervene upon
or, even if one was raised, the resolution of request of either or both parties or at its own initiative and
the same will not materially change the immediately call the parties to conciliation meetings. The
results of the elections. Board shall have the power to issue subpoenas requiring the
Effect The winning union shall have the rights, attendance of the parties to such meetings. It shall be the duty
privileges and obligations of a duly certified of the parties to participate fully and promptly in the
collective bargaining agent from the time the conciliation meetings the Board may call;
certification is issued.
(d) During the conciliation proceedings in the Board, the
LC, Art. 261, supra p. 41 parties are prohibited from doing any act which may disrupt or
LC, Art. 262, supra p. 43 impede the early settlement of the disputes; and

Book V, Rule 1, Sec 1 (t) "Exclusive Bargaining Representative" (e) The Board shall exert all efforts to settle disputes amicably
refers to a legitimate labor union duly recognized or certified and encourage the parties to submit their case to a voluntary
as the sole and exclusive bargaining representative or agent of arbitrator. (As amended by Section 20, Republic Act No. 6715,
all the employees in a bargaining unit. March 21, 1989)

Book V, Rule IX, Secs. 16, 20 supra pp. 52-53 LC, Art. 259 - Duty to bargain collectively when there exists a
collective bargaining agreement, supra p. 45.
PHIL DIAMOND HOTEL v. MANILA DIAMOND HOTEL
LC Art. 259-A—Terms of A Collective Bargaining Agreement.
EMPLOYEES UNION (2006)
Any Collective Bargaining Agreement that the parties may
D: Art. 242(a) states that one of the rights of a legitimate labor
enter into shall, insofar as the representation aspect is
organizations is to act as representative of its members for
concerned, be for a term of five (5) years. No petition
the purpose of collective bargaining—this must be read in questioning the majority status of the incumbent bargaining
connection with Art. 255, which states that only the labor
agent shall be entertained and no certification election shall be
organization designated or selected by the majority of the
conducted by the Department of Labor and Employment
employees in an appropriate collective bargaining unit is the
outside of the sixty-day period immediately before the date of
exclusive representative of the employees in such unit for the
expiry of such five-year term of the Collective Bargaining
purpose of collective bargaining.
Agreement. All other provisions of the Collective Bargaining
Agreement shall be renegotiated not later than three (3) years
F: Union filed a petition for certification election for the
after its execution. Any agreement on such other provisions of
representation of its members only. The company refused, so
the Collective Bargaining Agreement entered into within six (6)
the union went on strike, which resulted in violence.
months from the date of expiry of the term of such other
provisions as fixed in such Collective Bargaining Agreement,
H: Union’s contention that it was bargaining on behalf only of
shall retroact to the day immediately following such date. If
its members would only fragment the rank-and-file
UP LAW C2017 LABOR 2 (PROF. DAWAY) MIDTERMS REVIEWER | 57

any such agreement is entered into beyond six months, the accordance with Article 250 of the Labor Code within the one-
parties shall agree on the duration of retroactivity thereof. In year period referred to in Section 14(c) of this Rule, or there
case of a deadlock in the renegotiation of the Collective exists a bargaining deadlock which had been submitted to
Bargaining Agreement, the parties may exercise their rights conciliation or arbitration or had become the subject of a valid
under this Code. notice of strike or lockout to which an incumbent or certified
bargaining agent is party
LC, Art. 262, supra p. 43
3. Deadlock Bar Rule
Book V, Rule VIII, Sec. 3, supra p. 45
Book V, Rule VIII, Sec. 3(c) When to file. - A petition for
Book V, Rule VIII, Sec. 14, supra p. 48 certification election may be filed anytime, except: c) when a
bargaining deadlock to which an incumbent or certified
1. One Year Bar/Recognition or Certification Bar Rule bargaining agent is a party had been submitted to conciliation
or arbitration or had become the subject of a valid notice of
Book V, Rule VIII, Sec. 3(a) When to file. - A petition for strike or lockout;
certification election may be filed anytime, except: (a) when a
fact of voluntary recognition has been entered or a valid Book V, Rule VIII, Sec. 14(d) Denial of the petition; Grounds. -
certification, consent or run-off election has been conducted The Mediator-Arbiter may dismiss the petition on any of the
within the bargaining unit within one (1) year prior to the filing following grounds: xxx (d) a duly certified union has
of the petition for certification election. Where an appeal has commenced and sustained negotiations with the employer in
been filed from the order of the Med-Arbiter certifying the accordance with Article 250 of the Labor Code within the one-
results of the election, the running of the one year period shall year period referred to in Section 14(c) of this Rule, or there
be suspended until the decision on the appeal has become exists a bargaining deadlock which had been submitted to
final and executory; conciliation or arbitration or had become the subject of a valid
notice of strike or lockout to which an incumbent or certified
Book V, Rule VIII, Sec. 14(c) Denial of the petition; Grounds. - bargaining agent is party
The Mediator-Arbiter may dismiss the petition on any of the
following grounds: (c) the petition was filed within one (1) year DIVINE WORD UNIVERSITY v. SEC OF LABOR (1992)
from entry of voluntary recognition or a valid certification, D: In the absence of a CBA, an employer who is requested to
consent or run-off election and no appeal on the results of the bargain collectively may file a petition for certification election
certification, consent or run-off election is pending any time except upon a clear showing that one of these two
instances exists: (a) the petition is filed within one year from
KAISAHAN NG MANGGAGAWANG PILIPINO v. TRAJANO the date of issuance of a final certification election result or
(1991) (b) when a bargaining deadlock had been submitted to
D: Absent proof to establish any of the exemptions under Sec conciliation or arbitration or had become the subject of a valid
3 (deadlock), there exists no prohibition on filing a petition for notice of strike or lockout.
a certification election.
F: The union was proclaimed the bargaining unit of the
F: NAFLU was proclaimed sole and exclusive bargaining agent university employees. After 3 years of submitting CB
of Viron employees in 1981. After 4 years, KAMPIL filed a proposals to the university and being ignored, the union filed a
petition for certification election. NAFLU opposed, saying the notice of strike. Conferences held after the filing led to the
petition is barred, as a deadlock has been reached by NAFLU agreement that the union would submit CB proposals again.
and Viron in its collective bargaining. An hour before the agreement was concluded, the university
filed a petition for certification election. The union opposed
H: No bar to petition. 4 years had passed and no CBA had this, alleging a bargaining deadlock.
been passed, allowing a petition for certification election to be
granted anew. H: No bargaining deadlock in the CB process as there was no
“reasonable effort at good faith bargaining” on the part of the
R. TRANSPORT CORP. v. LAGUESMA (1993) supra p. 54 university, so it has the right to file the petition for certification
D: If the dismissal of employees is under question, the election, BUT to grant this would put an unjustified premium
employees concerned could still qualify to vote in the on bad faith bargaining.
elections.
SAN MIGUEL CORP. v. NLRC (1999)
2. Negotiation Bar Rule D: A CB Deadlock is “the situation between the labor and the
management of the company where there is failure in the
Book V, Rule VIII, Sec. 3(b) - A petition for certification election collective bargaining negotiations resulting in a stalemate”. All
may be filed anytime, except: (b) when the duly certified union remedies must be exhausted before one is proclaimed by
has commenced and sustained negotiations in good faith with either party.
the employer in accordance with Article 250 of the Labor Code
within the one year period referred to in the immediately F: SMC retrenched some of its employees. The union filed
preceding paragraph grievance cases, and the grievance procedure laid down in the
CBA was followed. Before the grievance proceedings finished,
Book V, Rule VIII, Sec. 14(d) Denial of the petition; Grounds. - SMC notified the union that the employees who could not be
The Mediator-Arbiter may dismiss the petition on any of the redeployed would be terminated. The union filed a notice of
following grounds: xxx (d) a duly certified union has strike on the ground of bargaining deadlock and violation of
commenced and sustained negotiations with the employer in the CBA. SMC sought to dismiss the notice, and to have the
UP LAW C2017 LABOR 2 (PROF. DAWAY) MIDTERMS REVIEWER | 58

parties continue with the proceeding. absurd situation where the union members will be forced to
maintain membership by virtue of the union security clause
H: Proceedings should continue. No bargaining deadlock—the under the CBA and, thereafter, support another union while
union has not yet exhausted its remedies under the CBA. The filing a petition for certification election.
violation of the CBA is chargeable against the union because it
was the party which abandoned the grievance procedure in F: Dequilla, et al. were members of NAMAPRI (bargaining
the CBA. agent of PICOP R&F employees) terminated by PICOP due to
alleged acts of disloyalty when they signed authorization in
4. Contract Bar Rule support of the petition for cancellation of the rival union
before the freedom period. PICOP claims this was in violation
LC, Art. 238, supra p. 41 or 56 of the union security clause of the CBA.
LC, Art. 259, supra p. 45
LC, Art. 259-A, supra p. 56 H: Mere signing of the authorization before the freedom period
LC, Art. 256, supra p. 56 is not valid proof of disloyalty, or sufficient ground to
terminate the employment, as the petition itself was actually
Book V, Rule VIII, Sec. 3(d)—Denial of the petition; Grounds. A filed during the freedom period
petition for certification election may be filed anytime, except:
(d) when a collective bargaining agreement between the G. Suspension of CE: Prejudicial Question
employer and a duly recognized or certified bargaining agent
has been registered in accordance with Article 231 of the Section 3. Effects of the filing/pendency of inter/intra-union
Labor Code. Where such collective bargaining agreement is and other related labor relations disputes, par. 2 - The filing or
registered, the petition may be filed only within sixty (60) days pendency of any inter/intra-union dispute and other related
prior to its expiry. labor relations dispute is not a prejudicial question to any
petition for certification election and shall not be a ground for
Book V, Rule VIII, Sec. 14(d) The Mediator-Arbiter may dismiss the dismissal of a petition for certification election or
the petition on any of the following grounds: xxx (b) the suspension of proceedings for certification election.
petition was filed before or after the freedom period of a duly-
registered collective bargaining agreement; provided that the LINGKOD MANGGAGAWA NG RUBBERWORLD
sixty-day period based on the original collective bargaining v. RUBBERWORLD (2007)
agreement shall not be affected by any amendment, extension D: Upon appointment of a management committee, the
or renewal of the collective bargaining agreement; rehabilitation receiver, board or body, all actions for claims
against corporations under managements or receivership
Book V, Rule VIII, Sec. 24—Effects of Earlier Agreements. The pending before any court, tribunal, board or body shall be
representation case shall not be adversely affected by a suspended. Allowing labor cases to proceed defeats the
collective bargaining agreement registered before or during purpose of the automatic stay and encumbers management
the last sixty (60) days of a subsisting agreement or during the committee’s time and resources
pendency of the representation case.
F: Rubberworld filed a Notice of Temporary Partial Shutdown
COLEGIO DE SAN JUAN DE LETRAN V. ASSOC. (2000) due to severe financial crisis. Bisig (had CBA with
D: For the employer to validly suspend bargaining processes, Rubberworld) went on strike, speeding up the shutdown.
there must be a valid petition for certification election raising Petitioner union filed a complaint against Rubberworld,
a legitimate representation issue. Mere filing of petition for alleging it filed a petition for certification election during the
certification election does not justify suspension of freedom period granted by the DOLE Regional Director. While
negotiations by employer. the complaint was pending, Rubberworld filed a petition with
the SEC which granted that all actions for claims against
F: Union wanted to continue renegotiating CBA. Letran Rubberworld be suspended. LA still rendered decision finding
claimed it was already prepared for signing. Union rejected the Rubberworld liable for ULP and ordering the payment of
unsigned CBA. Letran accused union of bargaining in bad P27M.
faith. Union and Letran started negotiations on a new CBA.
Letran suspended negotiations upon learning that another H: LA decision void for violating the suspension order, which
labor union had filed a petition for certification election. Union mandates the suspension of all actions for claims against a
corporation under a management committee by the SEC.
H: Letran is guilty of ULP by refusing to bargain with union.
Suspension of negotiations due to another union’s filing of H. Opposition
petition for certification election was not valid. The other
union’s filing of petition for certification election did not bar PROTECTION TECHNOLOGY V. SEC. OF LABOR (1995)
the negotiations because it was filed after the 60-day freedom D: The union must first submit its books of accounts before it
period. may exercise the rights of a legitimate labor organization.
Non-submission of the books of account certified by and
4. a. When not a bar attested to by the appropriate officer is a ground which the
employer can invoke to oppose a petition for certification
PICOP v. DEQUILLA (2011) election filed by the local or chapter concerned.
D: An existing CBA does not serve as a bar for a filing of a
certification election. When there is a representational issue, F: Union filed a petition for certification election. Company
the status quo provision for the need to await the creation of a opposed on the ground that the Union failed to submit its
new agreement will not apply. Otherwise, it will create an books of account with the BLR at the time it was registered as
UP LAW C2017 LABOR 2 (PROF. DAWAY) MIDTERMS REVIEWER | 59

a legitimate labor organization.

H: Failure of the secretary of union to certify the required


documents under oath prevents its acquisition of a legitimate
status.

I. Effect of Petition for Cancellation


of Trade Union Registration

Labor Code, Art. 244-A—Effect of a Petition for Cancellation of


Registration. A petition for cancellation of union registration
shall not suspend the proceedings for certification election nor
shall it prevent the filing of a petition for certification election.

In case of cancellation, nothing herein shall restrict the right of


the union to seek just and equitable remedies in the
appropriate courts. (As amended by RA 9481); also supra p. 23

SAMAHAN NG MANGGAGAWA SA PACIFIC PLASTIC


v. LAGUESMA (1997)
D: Certification election can be conducted despite pendency of
a petition to cancel the union registration certificate.

F: MNMPP filed a petition for certification election. Samahan


countered by seeking the cancellation of MNMPP’s union
registration. The Secretary of Labor ordered the holding of a
certification election. Pacific Plastic failed to provide the list of
its rank and file employees despite repeated warnings, so an
employee list from SSS was used. MNMPP got the most
votes. Samahan claimed that the proceedings for the
cancellation of MNMPP’s union registration was a prejudicial
question.

H: Not a prejudicial question. Certification election valid. At


the time MNMPP filed its petition for certification, it still had
the legal personality to perform such act absent an order
directing its cancellation.

AIR PHILS. CORP. v. BLR (2006)


D: To de-certify a union, it is not enough to establish that the
rank-and-file union includes ineligible employees in its
membership. Art. 239 (a) and (c) states that it must be shown
that there was misrepresentation, false statement or fraud in
connection with the adoption or ratification of the constitution
and by-laws or amendments thereto, the minutes of
ratification, etc.

F: APFLA, after it was duly registered with DOLE, filed a


petition for certification election, which it later won. Air Phil
filed for the cancellation of APFLA’s registration, alleging that
its membership is not made up purely of rank-and-file
employees, but includes supervisory employees.

H: APFLA registration cannot be cancelled. Art. 245 re: barring


supervisory employees from joining the union of rank-and-file
employees is not a ground for cancellation of union
registration.