Labor

RELATIONS
 LABOR RELATIONS S M I L E N O T ES ☺ |2

relationship which can only be resolved by reference to the Labor Code, other labor
PART I - STATE POLICIES ON LABOR RELATIONS
statutes, or their collective bargaining agreement.

A. Voluntary/democratic modes of dispute settlement

003 Portillo vs. Rudolf Lietz, Inc. G.R. No. 196539. October 10, 2012.
Facts
1. Labor dispute
• The issue in this case is whether Portillo’s money claims for unpaid salaries may be
• “Labor dispute” includes any controversy or matter concerning terms or conditions
offset against respondents’ claim for liquidated damages for breach of the “Goodwill
of employment or the association or representation of persons in negotiating, fixing,
Clause” or the “Non-Compete Clause”.
maintaining, changing or arranging the terms and conditions of employment,
Held
regardless of whether the disputants stand in the proximate relation of employer
• The “Goodwill Clause” or the “Non-Compete Clause” is a contractual undertaking
and employee.1
effective after the cessation of the employment relationship between the parties. In
accordance with jurisprudence, breach of the undertaking is a civil law dispute, not
001 San Miguel Corp. Employees Union-PTGWO vs. Bersamira G.R. No. 87700. June 13, 1990.
a labor law case. It is clear, therefore, that while the jurisdiction over Portillo’s claim
Facts
is vested in the labor arbiter, the jurisdiction over Lietz Inc.’s claim rests on the
• It is SanMig’s submission that no employer-employee relationship exists between
regular courts.
itself and the contractual workers of Lipercon and D’Rite. As such, a labor dispute
• Simply, the labor tribunal in an employee’s claim for unpaid wages is without
cannot allegedly exist between them.
authority to allow the compensation of such claims against the post-employment
Held
claim of the former employer for breach of a post-employment condition. The labor
• The Court held that a labor dispute can nevertheless exist “regardless of whether the
tribunal does not have jurisdiction over the civil case of breach of contract.
disputants stand in the proximate relationship of employer and employee” provided
the controversy concerns, among others, the terms and conditions of employment
2. Preferred modes of dispute settlement
or a “change” or “arrangement” thereof. Put differently, and as defined by law, the
• The State shall promote the principle of shared responsibility between workers and
existence of a labor dispute is not negated by the fact that the plaintiffs and
employers and the preferential use of voluntary modes in settling disputes, including
defendants do not stand in the proximate relation of employer and employee.
conciliation, and shall enforce their mutual compliance therewith to foster industrial
peace.2
002 Halagueña vs. PAL G.R. No. 172013. October 2, 2009.
Facts Declaration of Policy
• Here, the petitioners’ primary relief is the annulment of a provision in the CBA, which • It is the policy of the State to:
allegedly discriminates against them for being female flight attendants. (a) promote and emphasize the primacy of free collective bargaining,
Held including voluntary arbitration, mediation and conciliation, as modes of
• The subject of litigation is incapable of pecuniary estimation, exclusively cognizable setting labor or industrial disputes;
by the RTC. Being an ordinary civil action, the same is beyond the jurisdiction of labor (b) promote free trade unionism as an instrument for the enhancement of
tribunals. The said issue cannot be resolved solely by applying the Labor Code. democracy and the promotion of social justice and development;
Rather, it requires the application of the Constitution, labor statutes, law on (c) foster the free and voluntary organization of labor movement;
contracts, and the CEDAW, which is within the jurisdiction of trial courts, a court of (d) promote the enlightenment of workers concerning their rights and
general jurisdiction. obligations as union members and as employees;
• Not every dispute between an employer and employee involves matters that only (e) provide an administrative machinery for the expeditious settlement of
labor arbiters and the NLRC can resolve in the exercise of their adjudicatory or quasi- labor or industrial disputes;
judicial powers. The jurisdiction of labor arbiters and the NLRC under Article 217 of (f) ensure a stable but dynamic and just industrial peace; and
the Labor Code is limited to disputes arising from an employer-employee

1
Labor Code (LC), Art. 219 (l)
2
CONST., Art. XIII, Sec. 3., par. 3
 LABOR RELATIONS
(g) ensure the participation of workers in decision and policy-making
processes affecting their rights, duties and welfare.3
004 Kiok Loy vs. NLRC No. L-54334. January 22, 1986.
Facts
• It has been indubitably established that (1) respondent Union was a duly certified
bargaining agent; (2) it made a definite request to bargain, accompanied with a copy
of the proposed Collective Bargaining Agreement, which were left unanswered and
unacted upon; and (3) the Company made no counter proposal whatsoever.
Held
• Collective bargaining which is defined as negotiations towards a collective
agreement, is one of the democratic frameworks under the Labor Code, designed to
stabilize the relation between labor and management and to create a climate of
sound and stable industrial peace. It is a mutual responsibility of the employer and
the Union and is characterized as a legal obligation. So much so that the Labor Code
makes it an unfair labor practice for an employer to refuse “to meet and convene …
for the purpose of negotiating an agreement with respect to wages, hours of work,
and all other terms and conditions of … if requested by either party.”
005 Scout Ramon V. Albano Memorial College vs. Noriel No. L-48347. October 3, 1978.
Facts
• The petitioner argues that a certification election cannot be conducted due to the
inability of private respondent to come up with the required signatures when the
petition was first filed.
Held
• A certification election for the collective bargaining process is the fairest and most
effective way of determining which labor organization can truly represent the
working force. No better device can assure the institution of industrial democracy
with the two parties to a business enterprise, management and labor, establishing a
regime of self-rule.
• The Bureau of Labor Relations, in the exercise of sound discretion, may order a
certification election notwithstanding the failure to meet the 30% requirement.
Once that requisite is complied with, however, the Code makes clear that “it shall be
mandatory for the Bureau to conduct a certification election.”
• There is another infirmity from which the petition suffers. It was filed by the
employer, the adversary in the collective bargaining process. Precisely, the
institution of collective bargaining is designed to assure that the other party, labor,
is free to choose its representative. Sound policy dictates that as much as possible,
3 6
LC, Art. 218 A
7
4
LC, Art. 218 B
5
LC, Art. 224
S M I L E N O T ES ☺ |3
management is to maintain a strictly hands-off policy. For if it does not, it may lend
itself to the legitim ate suspicion that it is partial to one of the contending unions.
Collective bargaining
• To encourage a truly democratic method of regulating the relations between the
employers and employees by means of agreements freely entered into through
collective bargaining, no court or administrative agency or official shall have the
power to set or fix wages, rates of pay, hours of work or other terms and conditions
of employment, except as otherwise provided by the Labor Code.4
• Who has jurisdiction over cases arising from the interpretation or implementation of
CBAs and those arising from the interpretation or enforcement of company
personnel policies?
o The Labor Arbiter by referring the same to the grievance machinery and
voluntary arbitration as may be provided in said agreements. 5
• Process of Voluntary Arbitration
o Jurisdiction over other labor disputes6
▪ The Voluntary Arbitrator or panel of Voluntary Arbitrators, upon
agreement of the parties, shall hear and decide all other labor
disputes including unfair labor practices and bargaining
deadlocks.
o Procedures7
▪ The Voluntary Arbitrator shall have the power to hold hearings,
receive evidences and take whatever action is necessary to
resolve the issue including efforts to effect a voluntary
settlement between parties.
▪ All parties to the dispute shall be entitled to attend the
arbitration proceedings.
▪ Unless the parties agree otherwise, it shall be mandatory for the
Voluntary Arbitrator to render an award or decision within (20)
days from the date of submission of the dispute to voluntary
arbitration.
▪ The award or decision of the Voluntary Arbitrator shall contain
the facts and the law on which it is based. It shall be final and
executory after (10) days from receipt of the copy of the award
or decision.
▪ Upon motion of any interested party, the Voluntary Arbitrator or
the Labor Arbiter in the region where the movant resides, in case
of the absence or incapacity of the Voluntary Arbitrator, for any
reason, may issue a writ of execution requiring either the sheriff
LC, Art. 262
LC, Art. 262 A
 LABOR RELATIONS S M I L E N O T ES ☺ |4

or any public official whom the parties may designate to execute Exception
the final decision, order or award. in case union busting, where the
o Cost of voluntary arbitration and Voluntary Arbitrator’s fee 8 existence of the union is
▪ The parties to a CBA shall provide a proportionate sharing threatened, the 15-day cooling-
scheme on the cost of voluntary arbitration. The fixing of fee of off period shall not apply and the
Voluntary Arbitrators shall take into account the following union may take action
factors: immediately
1. Nature of the case;
▪ During the cooling-off period, it shall be the duty of the Ministry
2. Time consumed in hearing the case;
to exert all efforts at mediation and conciliation to effect a
3. Professional standing of the Voluntary Arbitrator;
4. Capacity to pay of the parties; and voluntary settlement. Should the dispute remain unsettled, the
labor union may strike or the employer may declare a lockout.
5. Fees provided for in the Revised Rules of Court.
o Requisite of strikes
▪ A decision to declare a strike must be approved by a majority of
• Strikes, picketing and lockouts9
the total union membership in the bargaining unit concerned,
o It is the policy of the State to encourage free trade unionism and free
obtained by secret ballot in meetings or referenda.
collective bargaining. Workers shall have the right to engage in concerted
o Requisite of Lockouts
activities for purposes of collective bargaining or for their mutual benefit
▪ A decision to declare a lockout must be approved by a majority
and protection.
of the board of directors of the corporation or association or of
o General Rule
the partners in a partnership, obtained by secret ballot.
▪ The right of legitimate labor organizations to strike and picket
▪ The decision shall be valid for the duration of the dispute based
and of employers to lockout, consistent with the national
on substantially the same grounds considered when the strike or
interest, shall continue to be recognized and respected.
lockout vote was taken. The union or the employer shall furnish
o Exception
the Ministry the results of the voting at least 7 days before the
▪ No labor union may strike and no employer may declare a
intended strike or lockout, subject to the cooling-off period
lockout on grounds involving inter-union and intra-union
herein provided.
disputes.
o Motu Proprio
o Cooling-off period
▪ When, in his opinion, there exists a labor dispute causing or likely
to cause a strike or lockout in an industry indispensable to the
Bargaining Deadlocks Unfair Labor Practice
national interest, the Secretary of Labor and Employment may
Who may file
assume jurisdiction over the dispute and decide it or certify the
duly certified or recognized duly certified or recognized
bargaining agent may file a notice bargaining agent, or in the same to the Commission for compulsory arbitration. Such
of strike or the employer may file absence thereof, by any assumption or certification shall have the effect of automatically
a notice of lockout legitimate labor organization in enjoining the intended strike or lockout.
behalf of its members ▪ If one has already taken place, all striking or locked out
With whom to file employees shall immediately return-to-work and the employer
With the Ministry shall immediately resume operations and readmit all workers
When to file under the same terms and.
General Rule ▪ The Secretary of Labor and Employment or the Commission may
at least 30 days before the
seek the assistance of law enforcement agencies to ensure
intended date thereof 15 days
compliance with this provision.

8 9
LC, Art. 262 B LC, Art. 263
 LABOR RELATIONS
o Hospitals
▪ Strikes and lockouts in hospitals, clinics and similar medical
institutions shall, to every extent possible, be avoided, and all
serious efforts be exhausted to minimize, if not prevent, their
adverse effects on life and health.
▪ In labor disputes adversely affecting the continued operation of
such hospitals, clinics or medical institutions, it shall be the duty
of the striking union or locking-out employer to provide and
maintain an effective skeletal workforce of medical and other
health personnel, whose movement and services shall be
unhampered and unrestricted, as are necessary to insure the
proper and adequate protection of the life and health of its
patients.
▪ In such cases, the Secretary of Labor and Employment may
immediately assume, within (24) hours from knowledge of the
occurrence of such a strike or lockout, jurisdiction over the same
or certify it to the Commission for compulsory arbitration.
▪ The President of the Philippines shall not be precluded from
determining the industries that, in his opinion, are indispensable
to the national interest, and from assuming jurisdiction over any
such labor dispute in order to settle or terminate the same.
o Voluntary Arbitration
▪ Before or at any stage of the compulsory arbitration process, the
parties may opt to submit their dispute to voluntary arbitration.
o Final and Executory
▪ The decision of the President, the Secretary of Labor and
Employment, the Commission or the voluntary arbitrator shall
be final and executory (10) calendar days after receipt thereof
by the parties
• Prohibited activities 10
o No labor organization or employer shall declare a strike or lockout without
first:
1. having bargained collectively or
2. without first having filed the notice required or
3. without the necessary strike or lockout vote obtained and
reported to the Ministry.
o No strike or lockout shall be declared after assumption of jurisdiction by
the President or the Minister or after certification or submission of the
dispute to compulsory or voluntary arbitration or during the pendency of
cases.
10
LC, Art. 264
11
LC, Art. 99
S M I L E N O T ES ☺ |5
o Reinstatement
▪ Any worker whose employment has been terminated as a
consequence of any unlawful lockout shall be entitled to
reinstatement with full back wages.
o Lost Employment
Union Officer Union Member
knowingly participates in an illegal knowingly participates in the
strike commission of illegal acts during a
knowingly participates in the strike
commission of illegal acts during a
strike
o Mere participation of a worker in a lawful strike shall not constitute
sufficient ground for termination of his employment, even if a replacement
had been hired by the employer during such lawful strike.
o No person shall obstruct, impede, or interfere with any peaceful picketing
or shall aid or abet such obstruction or interference.
o No employer shall use or employ any strike-breaker, nor shall any person
be employed as a strike-breaker.
o The police force shall keep out of the picket lines unless actual violence or
other criminal acts occur therein: Provided, That nothing herein shall be
interpreted to prevent any public officer from taking any measure
necessary to maintain peace and order, protect life and property, and/or
enforce the law and legal order.
o No person engaged in picketing shall commit any act of violence, coercion
or intimidation or obstruct the free ingress to or egress from the
employer’s premises for lawful purposes, or obstruct public
thoroughfares.
• Regional minimum wages 11
o The minimum wage rates for agricultural and non-agricultural employees
and workers in each and every region of the country shall be those
prescribed by the Regional Tripartite Wages and Productivity Boards. (
• Creation of Regional Tripartite Wages and Productivity Boards12
o The Regional Tripartite Wages and Productivity Boards shall have the
power to determine and fix minimum wage rates applicable in their
regions and to issue the corresponding wage orders, subject to guidelines
issued by the Commission.
12
LC, Art. 122
 LABOR RELATIONS
• Wage Order13
o Any party aggrieved by the Wage Order may appeal such to the
Commission within (10) days from the publication of such order. It shall be
mandatory for the Commission to decide such appeal within (60) days from
the filing thereof.
• Wage Distortion14
o Where the application of any prescribed wage increase results in
distortions of the wage structure within an establishment, the employer
and the union shall negotiate to correct the distortions. Any dispute arising
from wage distortions shall be resolved through the grievance procedure
and, if it remains unresolved, through voluntary arbitration. Such dispute
shall be decided by the voluntary arbitrators within (10) calendar days
from the time said dispute was referred to voluntary arbitration.
Resort to grievance machinery
• Cases arising from the interpretation or implementation of collective bargaining
agreements and those arising from the interpretation or enforcement of company
personnel policies shall be disposed of by the Labor Arbiter by referring the same to
the grievance machinery and voluntary arbitration as may be provided in said
agreements.15
• Visitorial power16
o General Rule
▪ The Secretary of Labor and Employment or his duly authorized
representative is hereby empowered to inquire into the financial
activities of legitimate labor organizations upon the filing of a
complaint under oath and duly supported by the written consent
of at least (20%) of the total membership of the labor
organization concerned and to examine their books of accounts
and other records to determine compliance or non-compliance
with the law.
o Exception
▪ Such inquiry or examination shall not be conducted during the
(60)-day freedom period nor within the thirty (30) days
immediately preceding the date of election of union officials.
13
LC, Art. 123
14
LC, Art. 124
15
LC, Art. 224 C
16
LC, Art. 274
17
LC, Art. 224 C
S M I L E N O T ES ☺ |6
Conciliation and Mediation
• The Labor Arbiter shall entertain only cases endorsed to him for compulsory
arbitration by the Bureau or by the Regional Director with a written notice of such
indorsement or non-indorsement. The indorsement or non-indorsement of the
Regional Director may be appealed to the Bureau within (10) working days from
receipt of the notice.
Voluntary Arbitration
• Cases arising from the interpretation or implementation of collective bargaining
agreements and those arising from the interpretation or enforcement of company
personnel policies shall be disposed of by the Labor Arbiter by referring the same to
the grievance machinery and voluntary arbitration as may be provided in said
agreements.17
3. Non-interference by government
• To encourage a truly democratic method of regulating the relations between the
employers and employees by means of agreements freely entered into through
collective bargaining, no court or administrative agency or official shall have the
power to set or fix wages, rates of pay, hours of work or other terms and conditions
of employment, except as otherwise provided by the Labor Code.18
B. Trade unionism
• It is the policy of the State to promote free trade unionism as an instrument for the
enhancement of democracy and the promotion of social justice and development
and to foster the free and voluntary organization of a strong and united labor
movement.19
C. Worker enlightenment
• It is the policy of the State to promote the enlightenment of workers concerning their
rights and obligations as union members and as employees. 20
• All unions are authorized to collect reasonable membership fees, union dues,
assessments and fines and other contributions for labor education and research,
mutual death and hospitalization benefits, welfare fund, strike fund and credit and
cooperative undertakings.21
18
LC, Art. 218 B
19
LC, Art. 218 b & c
20
LC, Art. 218 d
21
LC, Art. 292 a
 LABOR RELATIONS
D. Adequate machinery for expeditious dispute settlement
• All persons shall have the right to a speedy disposition of their cases before all
judicial, quasi-judicial, or administrative bodies.22 It is the policy of the State to
provide an adequate administrative machinery for the expeditious settlement of
labor or industrial disputes.23
• Technicalities 24
o In any proceeding before the Commission or any of the Labor Arbiters, the
rules of evidence shall not be controlling. The Commission and its
members and the Labor Arbiters shall use every and all reasonable means
to ascertain the facts in each case speedily and objectively and without
regard to technicalities of law or procedure, all in the interest of due
process. In any proceeding before the Commission or any Labor Arbiter,
the parties may be represented by legal counsel.
• Mandatory Periods25
o To ensure speedy labor justice, the periods provided within which
decisions should be rendered shall be mandatory. For this purpose, a case
shall be deemed submitted for decision upon the filing of the last pleading
or memorandum.
o Upon expiration of the corresponding period, a certification stating why a
decision or resolution has not been rendered within the said period shall
be issued and a copy thereof served upon the parties.
o Despite the expiration of the applicable mandatory period, the officials
shall see to it that the case or matter shall be decided or resolved without
any further delay.
• Prescribing Procedures and Sanctions to Ensure Speedy Disposition of Administrative
Cases26
o Period For Deciding Cases or Incidents
▪ Unless a different period is fixed by special law, all contested
cases shall be decided within (30) days from the date of
submission for resolution.
▪ Where the officer’s action is only recommendatory to his
immediate superior or head of office, he shall submit his
recommendation within (20) days from date of submission of the
case for resolution. The approving officer shall have (10) days
from submission to decide the case or incident.
▪ A case or incident is deemed submitted for resolution upon
expiration of the period for filing the last pleading required.
▪ Every officer charged with the resolution of cases shall submit to
his immediate superior, within (10) days following the end of
22
CONST., Art. III, Sec. 16
23
LC, Art. 218 e
24
LC, Art. 221
S M I L E N O T ES ☺ |7
every month, a sworn Statement declaring that all cases
submitted to him have been decided within the prescribed
period.
▪ Only one motion for reconsideration shall be allowed, which
shall be decided within (15) days from date of submission for
resolution. No other pleading shall be allowed.
o Abbreviation of Proceedings
▪ All administrative agencies are hereby directed to adopt the
following provisions:
• Rules encouraging the parties and their counsels to
enter into amicable settlement, compromise, and
arbitration;
• Rules adopting the mandatory use of affidavits in lieu
of direct testimonies and the preferred use of
depositions whenever practicable and convenient;
• Rules requiring the parties to submit in addition to the
memorandum, position paper, or last pleading
required of them, a draft of the decision they seek,
stating clearly and distinctly the facts and the law upon
which it is based.; and
• Rules avoiding postponements of hearings or trials and
other dilatory tactics which the parties or their
counsels might employ.
o Applicability
▪ In accordance with Section 2, Chapter 1, Book VII of the
Administrative Code, these regulations shall, unless otherwise
provided by special laws, apply to government agencies,
including any department, bureau, board, office, commission,
authority or officer of the National Government authorized by
law or executive order to adjudicate cases.
▪ These regulations shall not apply to the Congress, the Judiciary,
the Constitutional Commissions, military establishments in all
matters relating exclusively to Armed Forces personnel, the
Board of Pardons and Parole, and state universities and colleges.
25
LC, Art. 227 i
26
EO 26 (1992)
 LABOR RELATIONS
E. Industrial Peace & Tripartism
• It is the policy of the State to ensure a stable but dynamic and just industrial peace.27
Tripartism in labor relations is hereby declared a State policy. Towards this end,
workers and employers shall, as far as practicable, be represented in decision and
policy-making bodies of the government.28
o The Secretary of Labor and Employment may call a national, regional, or
industrial tripartite conference of representatives of government, workers
and employers for the consideration and adoption of voluntary codes of
principles designed to promote industrial peace. In calling such
conference, the Secretary of Labor and Employment may consult with
accredited representatives of workers and employers.
• The Ministry shall help promote and gradually develop labor-management
cooperation programs at appropriate levels of the enterprise based on the shared
responsibility and mutual respect in order to ensure industrial peace and
improvement in productivity, working conditions and the quality of working life. 29
• National Labor Relations Commission30
o There shall be a National Labor Relations Commission which shall be
attached to the Department of Labor and Employment.
Five (5) members
each shall be chosen from among the nominees of the workers and
employers organizations, respectively. The Chairman and the four (4)
remaining members shall come from the public sector, with the latter to
be chosen from among the recommendees of the Secretary of Labor and
Employment.
o Upon assumption into office, the members nominated shall divest
themselves of any affiliation with the federation or association to which
they belong.
o The Commission may sit en banc or in five (5) divisions, each composed of
three (3) members. The Commission shall sit en banc only for purposes of
promulgating rules and regulations and formulating policies affecting its
administration and operations. Of the five (5) divisions, the first, second
and third divisions shall handle cases coming from the National Capital
Region and the parts of Luzon; and the fourth and fifth divisions, cases
from the Visayas and Mindanao.
o The concurrence of two (2) Commissioners of a division shall be necessary
for the pronouncement of judgment or resolution. Whenever the required
membership in a division is not complete and the concurrence of (2)
27
LC, Art. 218 f
28
LC, Art. 275
29
LC, Art. 277 g
30
LC, Art. 213
31
LC, Art. 120
32
LC, Art. 121 2
S M I L E N O T ES ☺ |8
commissioners cannot be obtained, the Chairman shall designate such
number of additional Commissioners from the other divisions.
• Creation of National Wages and Productivity Commission 31
o There is hereby created a National Wages and Productivity Commission.
o The Commission shall have the power to formulate policies and guidelines
on wages, incomes and productivity improvement at the enterprise,
industry and national levels.32
• Employees’ Compensation Commission33
o To initiate, rationalize, and coordinate the policies of the employees’
compensation program, the Employees’ Compensation Commission is
hereby created.
F. Worker participation in decision and policy making processes
affecting rights, duties and welfare
General Rule
• It is the policy of the State to ensure the participation of workers in decision and
policy-making processes affecting their rights, duties and welfare.34
• Exclusive bargaining representation35
o The labor organization designated or selected by the majority of the
employees in an appropriate collective bargaining unit shall be the
exclusive representative of the employees in such unit for the purpose of
collective bargaining. However, an individual employee or group of
employees shall have the right at any time to present grievances to their
employer.
o Workers shall have the right to participate in policy and decision-making
processes of the establishment where they are employed insofar as said
processes will directly affect their rights, benefits and welfare. For this
purpose, workers and employers may form labor-management councils:
Provided, That the representatives of the workers in such labor-
management councils shall be elected by at least the majority of all
employees in said establishment.
• Labor-Management Committee36
o A business enterprise or its employees, through their authorized
representatives, may initiate the formation of a labor-management
committee that shall be composed of an equal number of representatives
33
LC, Art. 176
34
LC, Art. 218
35
LC, Art. 255
36
R.A. No. 6971, Sec. 5
 LABOR RELATIONS
from the management and from the rank-and-file employees who shall
have equal voting rights: Provided, That at the request of any party, the
National Wages and Productivity Commission shall provide the necessary
studies, technical information and assistance, and expert advice.
o In business enterprises with duly recognized or certified labor
organizations
▪ The representatives of labor shall be those designated by the
collective bargaining agent(s) of the bargaining unit(s).
o In business enterprises without duly recognized or certified labor
organizations
▪ The representatives of labor shall be elected by at least a
majority of all rank-and-file employees who have rendered at
least six (6) months of continuous service.
006 Philippine Airlines, Inc. vs. NLRC G.R. No. 85985. August 13, 1993.
Facts
• PAL asserts that when it revised its Code on March 15, 1985, there was no law which
mandated the sharing of responsibility therefor between employer and employee.
Held
• Even in the absence of clear provision of law, the exercise of management
prerogatives was never considered boundless. Thus, in Cruz vs. Medina, it was held
that management’s prerogatives must be without abuse of discretion.
• A close scrutiny of the objectionable provisions of the Code reveals that they clearly
have repercussions on the employees’ right to security of tenure as they may result
in the deprivation of an employee’s means of livelihood which is a property right.
• Verily, a line must be drawn between management prerogatives regarding business
operations per se and those which affect the rights of the employees. In treating the
latter, management should see to it that its employees are at least properly informed
of its decisions or modes of action.
Exception
1. Management Prerogatives
• The State recognizes the indispensable role of the private sector, encourages private
enterprise, and provides incentives to needed investments.
However, the State shall also regulate the relations between workers and employers,
recognizing the right of labor to its just share in the fruits of production and the right
of enterprises to reasonable returns on investments, and to expansion and growth.
37
37
CONST., Art. II, Sec. 20 and Art. XIII, Sec. 3, par. 4
S M I L E N O T ES ☺ |9
2. Definition and scope
007 Chu vs. National Labor Relations Commission G.R. No. 106107 June 2, 1994.
Facts
• The petitioner argues that he cannot be transferred to another position because the
“Special Contract of Employment” clearly stated the position for which he was to be
employed under and such constituted a waiver on the part of the private respondent
to transfer or re-assign petitioner to any other position in the company.
Held
• An owner of a business enterprise is given considerable leeway in managing his
business because it is deemed important to society as a whole that he should
succeed. Our law, therefore, recognizes certain rights as inherent in the
management of business enterprises. These rights are collectively called
management prerogatives or acts by which one directing a business is able to control
the variables thereof so as to enhance the chances of making a profit. In short, the
elbow room in the quest for profits.
• An employee’s right to security of tenure does not give him such a vested right in his
position as would deprive the company of its prerogative to change his assignment
or transfer him where he will be most useful. When his transfer is not unreasonable,
nor inconvenient, nor prejudicial to him, and it does not involve a demotion in rank
or a diminution of his salaries, benefits, and other privileges, the employee may not
complain that it amounts to a constructive dismissal.
008 San Miguel Brewery Sales Force Union (PTGWO) vs. Ople G.R. No. 53515. February 8, 1989.
Facts
• The union assails the CDS scheme of San Miguel because the same would reduce the
take home pay of salesmen and truck helpers. This was because the scheme enabled
San Miguel to sell its beer products directly to wholesalers through its sales offices.
Held
• The CDS is a valid exercise of management prerogatives. Except as limited by special
laws, an employer is free to regulate, according to his own discretion and judgment,
all aspects of employment. Every business enterprise endeavors to increase its
profits. In the process, it may adopt or devise means designed towards that goal.
Even as the law is solicitous of the welfare of the employees, it must also protect the
right of an employer to exercise what are clearly management prerogatives. The free
will of management to conduct its own business affairs to achieve its purpose cannot
be denied. So long as a company’s management prerogatives are exercised in good
faith for the advancement of the employer’s interest and not for the purpose of
defeating or circumventing the rights of the employees under special laws or under
valid agreements, this Court will uphold them.
 LABOR RELATIONS
009 Philippine Airlines, Inc. vs. NLRC G.R. No. 85985. August 13, 1993. SUPRA
Facts
• PAL asserts that when it revised its Code on March 15, 1985, there was no law which
mandated the sharing of responsibility therefor between employer and employee.
Held
• Even in the absence of clear provision of law, the exercise of management
prerogatives was never considered boundless. Thus, in Cruz vs. Medina, it was held
that management’s prerogatives must be without abuse of discretion.
• A close scrutiny of the objectionable provisions of the Code reveals that they clearly
have repercussions on the employees’ right to security of tenure as they may result
in the deprivation of an employee’s means of livelihood which is a property right.
• Verily, a line must be drawn between management prerogatives regarding business
operations per se and those which affect the rights of the employees. In treating the
latter, management should see to it that its employees are at least properly informed
of its decisions or modes of action.
010 Union of Filipro Employees-Drug, Food and Allied Industries Unions Kilusang Mayo Uno vs.
Nestlé Philippines, Inc. G.R. No. 158930-31. August 22, 2006.
Facts
• Nestle was of the view that unilateral grants, one-time company grants, company
initiated policies (Retirement Plan) are not proper subjects of CBA negotiations and
shall be excluded. The union held a contrary view and filed a case for unfair labor
practice against Nestle.
Held
• Employers are accorded rights and privileges to assure their self-determination and
independence and reasonable return of capital. This mass of privileges comprises
the so-called management prerogatives. In this connection, the rule is that good faith
is always presumed. As long as the company’s exercise of the same is in good faith
to advance its interest and not for purpose of defeating or circumventing the rights
of employees under the law or a valid agreement, such exercise will be upheld.
• Nestlé’s inclusion in its Position Paper of its proposals affecting other matters
covered by the CBA contradicts the claim of refusal to bargain or bargaining in bad
faith.
S M I L E N O T E S ☺ | 10
3. Limits
011 SHS Perforated Materials, Inc. vs. Diaz G.R. No. 185814. October 13, 2010.
Facts
• The issue at bar is whether or not withholding of an employee’s wages is included
within the ambit of management prerogatives.
Held
• Although management prerogative refers to “the right to regulate all aspects of
employment,” it cannot be understood to include the right to temporarily withhold
salary/wages without the consent of the employee. To sanction such an
interpretation would be contrary to Article 116 of the Labor Code, which states that
withholding of an employee’s wages by an employer may only be allowed in the form
of wage deductions under the circumstances provided in Article 113 of the Labor
Code.
012 Supreme Steel Corporation vs. Nagkakaisang Manggagawa ng Supreme Independent
Union (NMS-IND-APL) G.R. No. 185556. March 28, 2011.
Facts
• Despite the fact that the CBA prohibits the hiring by the company of contractual
employees except in the warehouse and packing section, Supreme Steel still hired
contractual employees.
Held
• Jurisprudence recognizes the right to exercise management prerogative. Labor laws
also discourage interference with an employer’s judgment in the conduct of its
business. For this reason, the Court often declines to interfere in legitimate business
decisions of employers. The law must protect not only the welfare of employees, but
also the right of employers. However, the exercise of management prerogative is not
unlimited. Managerial prerogatives are subject to limitations provided by law,
collective bargaining agreements, and general principles of fair play and justice.
• It is a familiar and fundamental doctrine in labor law that the CBA is the law between
the parties and compliance therewith is mandated by the express policy of the law.
If the terms of a CBA are clear and there is no doubt as to the intention of the
contracting parties, the literal meaning of its stipulation shall prevail. Moreover, the
CBA must be construed liberally rather than narrowly and technically and the Court
must place a practical and realistic construction upon it. Any doubt in the
interpretation of any law or provision affecting labor should be resolved in favor of
labor.
 LABOR RELATIONS S M I L E N O T E S ☺ | 11

013 PLDT vs. Paguio G.R. No. 152689. October 12, 2005.
Facts
• Due to the fact that Paguio sent a letter to his immediate supervisor criticizing the
criteria for performance by PLDT, he was transferred to an inferior position.
Held
• While jurisprudence holds that, except as limited by special laws, an employer is free
to regulate, according to his own discretion and judgment, all aspects of
employment, management prerogatives are not without limits. While it may be
conceded that management is in the best position to know its operational needs, the
exercise of management prerogative cannot be utilized to circumvent the law and
public policy on labor and social justice. That prerogative accorded management
should not defeat the very purpose for which our labor laws exist: to balance the
conflicting interests of labor and management. By its very nature, management
prerogative must be exercised always with the principles of fair play and justice. In
particular, the employer must be able to show that the transfer is not unreasonable,
inconvenient or prejudicial to the employee; nor does it involve a demotion in rank
or a diminution of his salaries, privileges and other benefits. The employer bears the
burden of proving that the transfer of the employee has complied with the foregoing
test.

014 Businessday Information Systems and Services, Inc. vs. NLRC G.R. No. 103575. April 5,
1993.
Facts
• There was impermissible discrimination against the private respondents in the
payment of their separation benefits because one group was given more than the
other.
Held
• The law requires an employer to extend equal treatment to its employees. It may
not, in the guise of exercising management prerogatives, grant greater benefits to
some and less to others. Management prerogatives are not absolute prerogatives
but are subject to legal limits, collective bargaining agreements, or general principles
of fair play and justice
 LABOR RELATIONS S M I L E N O T E S ☺ | 12

mutual respect, disrupt industrial peace and hinder the promotion of

PART II - THE RIGHT TO SELF-ORGANIZATION
healthy and stable labor-management relations.
o Consequently, unfair labor practices are not only violations of the civil
A. Bases of right
rights of both labor and management but are also criminal offenses against
the State.
1. Constitution
▪ Civil Aspect
• The right of the people, including those employed in the public and private sectors,
• The civil aspects of all cases involving unfair labor
to form unions, associations, or societies for purposes not contrary to law shall not
practices, which may include claims for actual, moral,
be abridged. The State shall guarantee the rights of all workers to self-organization,
exemplary and other forms of damages, attorney’s
collective bargaining and negotiations, and peaceful concerted activities, including
fees and other affirmative relief, shall be under the
the right to strike in accordance with law. The State shall promote the principle of
jurisdiction of the Labor Arbiters.
shared responsibility between workers and employers and the preferential use of
• The Labor Arbiters shall give utmost priority to the
voluntary modes in settling disputes, including conciliation, and shall enforce their
hearing and resolution of all cases involving unfair
mutual compliance therewith to foster industrial peace.38
labor practices. They shall resolve such cases within
• The right to self-organization shall not be denied to government employees. 39
thirty (30) calendar days from the time they are
submitted for decision.
2. Labor Code
• Recovery of civil liability in the administrative
• Coverage and employees’ right to self-organization40
proceedings shall bar recovery under the Civil Code.
o All persons employed in commercial, industrial and agricultural enterprises
▪ Criminal Aspect
and in religious, charitable, medical, or educational institutions, whether
• No criminal prosecution under this Title may be
operating for profit or not, shall have the right to self-organization and to
instituted without a final judgment finding that an
form, join, or assist labor organizations of their own choosing for purposes
unfair labor practice was committed. During the
of collective bargaining.
pendency of such administrative proceeding, the
o Ambulant, intermittent and itinerant workers, self-employed people, rural
running of the period of prescription of the criminal
workers and those without any definite employers may form labor
offense shall be considered interrupted.
organizations for their mutual aid and protection.
• The final judgment in the administrative proceedings
• Non-abridgment of right to self-organization41
shall not be binding in the criminal case nor be
o It shall be unlawful for any person to restrain, coerce, discriminate against
considered as evidence of guilt but merely as proof of
or unduly interfere with employees and workers in their exercise of the
compliance of the requirements therein set forth.
right to self-organization. Such right shall include the right to form, join, or
• It shall be unfair labor practice for a labor organization, its officers, agents or
assist labor organizations for the purpose of collective bargaining through
representatives to restrain or coerce employees in the exercise of their right to self-
representatives of their own choosing and to engage in lawful concerted
organization. Only the officers, members of governing boards, representatives or
activities for the same purpose for their mutual aid and protection.
agents or members of labor associations or organizations who have actually
• Concept of unfair labor practice and procedure for prosecution thereof 42
participated in, authorized or ratified unfair labor practices shall be held criminally
o Unfair labor practices violate the constitutional right of workers and
liable.43
employees to self-organization, are inimical to the legitimate interests of
both labor and management, including their right to bargain collectively
and otherwise deal with each other in an atmosphere of freedom and

38 41
CONST., Art. III, Sec. 8; Art. XIII, Sec. 3 LC, Art. 257
39 42
CONST., Art. IX(B), Sec. 2(5) LC, Art. 258
40 43
LC, Art. 253 LC, Art. 249 1
 LABOR RELATIONS
• Prohibition against aliens; exceptions44
o General Rule
▪ All aliens, natural or juridical, as well as foreign organizations are
strictly prohibited from engaging directly or indirectly in all forms
of trade union activities.
o Exception
▪ Aliens working in the country with valid permits issued by the
Department of Labor and Employment and who’s country grants
the same or similar rights to Filipino workers, may exercise the
right to self-organization and join or assist labor organizations of
their own choosing for purposes of collective bargaining.
3. International conventions
• These are conventions which the Philippines is bound to implement by virtue of its
membership with the ILO even without ratification.
ILO Convention No. 87
(Freedom of Association & Protection of Right to Organize, 1948)
• Workers and employers, without distinction whatsoever, shall have the right to
establish and, subject only to the rules of the organisation concerned, to join
organisations of their own choosing without previous authorisation.
• They shall have the right to draw up their constitutions and rules, to elect their
representatives in full freedom, to organise their administration and activities and to
formulate their programmes. The public authorities shall refrain from any
interference which would restrict this right or impede the lawful exercise thereof.
• Such organisations shall not be liable to be dissolved or suspended by administrative
authority and shall have the right to establish and join federations and
confederations and affiliate with international organisations.
• In exercising the rights provided for in this Convention, they shall respect the law of
the land. The law of the land, however, shall not be such as to impair the guarantees
provided for in this Convention.
• The extent to which the guarantees provided for in this Convention shall apply to the
armed forces and the police shall be determined by national laws or regulations.
• Summary
o ILO Convention No. 87 talks about the rights to establish and join labor
organizations, their autonomous activities, non-interference by the State,
and right to confederate.
44
LC, Art. 269
S M I L E N O T E S ☺ | 13
ILO Convention No. 98
(Application of the Principles of the Right to Organize and Bargain Collectively, 1949)
• Workers shall enjoy adequate protection against acts of anti-union discrimination in
respect of their employment. Such protection shall apply more particularly in respect
of acts calculated to:
(a) make the employment of a worker subject to the condition that he shall
not join a union or shall relinquish trade union membership;
(b) cause the dismissal of or otherwise prejudice a worker by reason of union
membership or because of participation in union activities.
• Workers' and employers' organisations shall enjoy adequate protection against any
acts of interference by each other or each other's agents or members in their
establishment, functioning or administration.
• Acts which are designed to promote the establishment of workers' organisations
under the domination of employers, or to support workers' organisations with the
object of placing such organisations under the control of employers, shall be deemed
to constitute acts of interference.
• Measures shall be taken to encourage and promote voluntary negotiation between
employers and workers' organisations, with a view to the regulation of terms and
conditions of employment by means of collective agreements.
• The extent to which the guarantees provided for in this Convention shall apply to the
armed forces and the police shall be determined by national laws or regulations.
• This Convention does not deal with the position of public servants engaged in the
administration of the State, nor shall it be construed as prejudicing their rights or
status in any way.
• Summary
o ILO Convention No. 98 talks about protection against unfair labor
practices, prohibition against yellow dog stipulations (stipulations
forbidding employees from joining unions), and how the State should
promote collective bargaining.
International Covenant on Economic, Social and Cultural Rights
• Each State Party to the present Covenant undertakes to take steps, individually and
through international assistance and co-operation, especially economic and
technical, to the maximum of its available resources, with a view to achieving
progressively the full realization of the rights recognized in the present Covenant by
all appropriate means, including particularly the adoption of legislative measures.
• The States Parties undertake to guarantee that the rights enunciated will be
exercised without discrimination of any kind as to race, colour, sex, language,
religion, political or other opinion, national or social origin, property, birth or other
status.
 LABOR RELATIONS S M I L E N O T E S ☺ | 14

• The States Parties undertake to ensure the right of everyone to form trade unions • Why is the definition of the right to self-organization in the Constitution narrow
and join the trade union of his choice, for the promotion and protection of his compared to the definition in the Labor Code?
economic and social interests. No restrictions may be placed on the exercise of this o The definition in the Constitution is narrow because such is intended to
right other than those prescribed by law and which are necessary in a democratic cover government employees as well.
society in the interests of national security or public order or for the protection of • Unfair Labor Practice
the rights and freedoms of others. o It shall be unlawful for an employer to discriminate in regard to wages,
hours of work and other terms and conditions of employment in order to
International Covenant on Civil and Political Rights encourage or discourage membership in any labor organization. 45
• Everyone shall have the right to freedom of association with others, including the • General Rule
right to form and join trade unions for the protection of his interests. o Nothing in law shall stop the parties from requiring membership in a
• No restrictions may be placed on the exercise of this right other than those which recognized collective bargaining agent as a condition for employment.
are prescribed by law and which are necessary in a democratic society in the • Exceptions
interests of national security or public safety, public order, the protection of public 1. Except those employees who are already members of another union at the
health or morals or the protection of the rights and freedoms of others. time of the signing of the collective bargaining agreement.
2. Religious objectors. (Reyes vs. Trajano G.R. No. 84433. June 2, 1992)
B. Extent and scope of right
015 Republic Savings Bank vs. Court of Industrial Relations No. L-20303. September 27, 1967.
Facts
Right to Self-Organization
• In the case at bar, respondents wrote and published a letter to the bank president,
1 2 demanding his resignation on the grounds of immorality, nepotism, favoritism and
discrimination in the appointment and promotion of bank employees.
Right to concerted Held
Right to join a union
activities • Assuming that they acted in their individual capacities when they wrote the letter,
they were nonetheless protected, for they were engaged in a concerted activity, in
their right of self-organization that includes concerted activity for mutual aid and
Constitution Definition Labor Code Definition protection, interference with which constitutes unfair labor practice. It is not
The right of the people, including those All persons employed in commercial, necessary that union activity be involved or that collective bargaining be
employed in the public and private sectors, industrial and agricultural enterprises and in contemplated.
to form unions, associations, or societies for religious, charitable, medical, or
• The right of self-organization of employees is not unlimited, as the right of an
purposes not contrary to law shall not be educational institutions, whether operating
employer to discharge for cause is undenied.
abridged. The State shall guarantee the for profit or not, shall have the right to self-
rights of all workers to self-organization, organization and to form, join, or assist
collective bargaining and negotiations, and labor organizations of their own choosing Note
peaceful concerted activities, including the for purposes of collective bargaining. • Concerted activities contemplate acting on issues affecting many, even if the actor
right to strike in accordance with law. Ambulant, intermittent and itinerant is a lone individual.
workers, self-employed people, rural
workers and those without any definite
employers may form labor organizations for
their mutual aid and protection.

45
LC, Art. 259(e)
 LABOR RELATIONS
016 Victoriano vs. Elizalde Rope Workers’ Union No. L-25246. September 12, 1974.
Facts
• A closed shop provision is where a labor union and an employer have agreed that
the employer may employ only members of the collective bargaining union, and the
employees must continue to be members of the union for the duration of the
contract in order to keep their jobs. Republic Act No. 3350 introduced an exception,
when it added: “but such agreement shall not cover members of any religious sects
which prohibit affiliation of their members in any such labor organization”. The issue
now is whether or not such provision is constitutional.
Held
• The court held in the affirmative. The purpose of R.A. 3350 was to insure freedom of
belief and religion, and to promote the general welfare by preventing discrimination.
It may not be amiss to point out here that the free exercise of religious profession or
belief is superior to contract rights. In case of conflict, the latter must, therefore,
yield to the former.
017 Reyes vs. Trajano G.R. No. 84433. June 2, 1992.
Facts
• The INK employees voted that the employees in their bargaining unit should be
represented by "NO UNION." The respondents argue that the petitioners are
disqualified to vote because they "are not constituted into a duly organized labor
union"—"because members of the INK prohibit its followers, on religious grounds,
from joining or forming any labor organization"—and "hence, not one of the unions
which vied for certification as sole and exclusive bargaining representative.”
Held
• Logically, the right NOT to join, affiliate with, or assist any union, and to disaffiliate
or resign from a labor organization, is subsumed in the right to join, affiliate with, or
assist any union, and to maintain membership therein. The right to form or join a
labor organization necessarily includes the right to refuse or refrain from exercising
said right. The fact that a person has opted to acquire membership in a labor union
does not preclude his subsequently opting to renounce such membership.
018 Kapatiran sa Meat and Canning Division vs. Ferrer-Calleja No. L-82914. June 20, 1988.
Facts
• The issue in this case is whether or not INK members, whose religion prohibits them
from joining labor unions, have the right to form their own union.
Held
• The Court held in the affirmative. The right of members of the Iglesia ni Kristo sect
not to join a labor union for being contrary to their religious beliefs does not bar the
46
LC, Art. 219 f
47
LC, Art. 292
S M I L E N O T E S ☺ | 15
members of that sect from forming their own union. The “recognition of the tenets
of the sect should not infringe on the basic right of self-organization granted by the
constitution to workers, regardless of religious affiliation.”
Note
• R.A. 3350 has been repealed but jurisprudence regarding the right of persons
belonging to religious sects which prohibit them from joining labor unions not to join
such unions still stands.
019 Pan American World Airways, Inc. vs. Pan American Employees Association No. L-25094.
April 29, 1969.
Facts
• As a result of a strike, several labor union officers were laid off. The court ordered a
return to work order. The respondent, however, refused to reinstate the officers as
it no longer trusted them in discharging their duties.
Held
• There is both a constitutional and statutory recognition that laborers have the right
to form unions to take care of their interests vis-a-vis their employers. Their freedom
to form organizations would be rendered nugatory if they could not choose their
own leaders to speak on their behalf and to bargain for them. As such, the
respondent could not lay off the union officers as it would be infringing upon the
union’s right to choose its representatives. Moreover, there was no showing that the
officers are uncappable of discharging their duties properly.
C. Workers with right of self-organization
1. All employees
• "Employee" includes any person in the employ of an employer. It shall include any
individual whose work has ceased as a result of or in connection with any current
labor dispute or because of any unfair labor practice if he has not obtained any other
substantially equivalent and regular employment.46
• Any employee, whether employed for a definite period or not, shall, beginning on
his first day of service, be considered as an employee for purposes of membership
in any labor union.47
2. Government employees
• The civil service embraces all branches, subdivisions, instrumentalities, and agencies
of the Government, including government-owned or controlled corporations with
original charters.48
48
Constitution, Art. IX-B, Sec. 2(1)
 LABOR RELATIONS S M I L E N O T E S ☺ | 16

• E.O. No. 180 (June 1, 1987) o Unorganized unit

o All government employees can form, join or assist employees’ ▪ A duly registered employees’ organization shall be accorded
organizations of their own choosing for the furtherance and protection of voluntary recognition upon a showing that no other employees’
their interests. They can also form, in conjunction with appropriate organization is registered or is seeking registration, based on
government authorities, labor-management committees, works councils records of the Bureau of Labor Relations, and that the said
and other forms of workers’ participation schemes to achieve the same organization has the majority support of the rank-and-file
objectives. employees in the organizational unit.
o Who are excluded: o Organized unit
▪ High-level employees whose functions are normally considered ▪ Where there are two or more duly registered employees’
as policy-making or managerial or whose duties are of a highly organizations in the appropriate organizational unit, the Bureau
▪ Members of the Armed Forces of the Philippines, including of Labor Relations shall, upon petition, order the conduct of a
police officers, policemen, firemen and jail guards certification election and shall certify as the exclusive
o Government employees shall not be discriminated against in respect of representative of the rank-and-file employees in said
their employment by reason of their membership in employees’ organization unit.
organizations or participation in the normal activities of their organization. o What may be negotiated
Their employment shall not be subject to the condition that they shall not ▪ Terms and conditions of employment or improvements thereof,
join or shall relinquish their membership in the employees’ organizations. except those that are fixed by law, may be the subject of
o Government authorities shall not interfere in the establishment, negotiations between duly recognized employees’ organizations
functioning or administration of government employees’ organizations and appropriate government authorities.
through acts designed to place such organizations under the control of o Civil Service law and rules governing concerted activities and strikes in the
government authority. government service shall be observed, subject to any legislation that may
o Government employees’ organizations shall register with the Civil Service be enacted by Congress.
Commission and the Department of Labor and Employment. The
application shall be filed with the Bureau of Labor Relations. Applications 3. Supervisors
may also be filed with the Regional Offices of the Department of Labor and ▪ Supervisory employees shall not be eligible for membership in a labor organization
Employment which shall immediately transmit the said applications to the of the rank-and-file employees but may join, assist or form separate labor
Bureau of Labor Relations. organizations of their own.49
o Upon approval of the application, a registration certificate shall be issued
to the organization recognizing it as a legitimate employees’ organization Managerial Supervisory Rank and File
with the right to represent its members and undertake activities to further “Managerial employee" is “Supervisory employees” All employees not falling
and defend its interest. The corresponding certificates of registration shall one who is vested with the are those who, in the within any of the above
be jointly approved by the Chairman of the Civil Service Commission and powers or prerogatives to interest of the employer, definitions are considered
Secretary of Labor and Employment. lay down and execute effectively recommend such rank-and-file employees for
o The appropriate organizational unit shall be the employers unit consisting management policies managerial actions if the purposes of this Book.52
and/or to hire, transfer, exercise of such authority is
of rank-and-file employees unless circumstances otherwise require. The
suspend, lay-off, recall, not merely routinary or
duly registered employees’ organization having the support of the majority
discharge, assign or clerical in nature but
of the employees in the appropriate organizational unit shall be designated
discipline employees. 50 requires the use of
as the sole and exclusive representative of the employees. independent judgment.51

49 51
LC, Art. 255 Id.
50 52
LC, Art. 219 m Id.
 LABOR RELATIONS
020 Cathay Pacific Steel Corporation vs. Court of Appeals G.R. No. 164561. August 30, 2006.
Facts
• Tamondong was dismissed from service when he was elected as an officer of a labor
union on the ground that he was a managerial employee, hence, not eligible to join
such union.
Held
• Tamondong was not a managerial employee but a mere supervisory employee,
therefore, making him eligible to participate in the union activities. Supervisory
employees are those who, in the interest of the employer, effectively recommend
such managerial actions, if the exercise of such authority is not merely routinary or
clerical in nature but requires the use of independent judgment. Being a mere
supervisory employee, the Labor Code provisions regarding disqualification of a
managerial employee from joining, assisting or forming any labor organization does
not apply to him.
021 Filoil Refinery Corporation vs. Filoil Supervisory & Confidential Employees Association No.
L-26736. August 18, 1972.
Facts
• The issue in this case is whether or not supervisory employees may form a union of
their own, to which the Court held in the affirmative.
Held
• Supervisors are entitled to engage in union activities and any discrimination against
them by reason thereof constitutes an unfair labor practice. Even though they may
exercise the prerogatives of management as regards the rank and file employees,
they are indeed employees in relation to their employer, and should therefore be
entitled under the law to bargain collectively with the top management with respect
to their terms and conditions of employment.
4. Aliens
• General Rule
o All aliens, natural or juridical, as well as foreign organizations are strictly
prohibited from engaging directly or indirectly in all forms of trade union
activities without prejudice to normal contacts between Philippine labor
unions and recognized international labor centers. 53
53
LC, Art. 284
54
Id.
55
DO. 40-C-05 amending Sec. 2, Rule II, Book V of the IRR of the Labor Code
S M I L E N O T E S ☺ | 17
• Exception
o Aliens working in the country with valid permits issued by the Department
of Labor and Employment, may exercise the right to self-organization and
join or assist labor organizations of their own choosing for purposes of
collective bargaining if they are nationals of a country which grants the
same or similar rights to Filipino workers, 54 or which has ratified either ILO
convention No. 87 and ILO Convention No. 98.55
• Regulation of foreign assistance56
o No foreign individual, organization or entity may give any donations, grants
or other forms of assistance, in cash or in kind, directly or indirectly, to any
labor organization, group of workers or any auxiliary thereof without prior
permission by the Secretary of Labor.
o This prohibition shall equally apply to foreign donations, grants or other
forms of assistance, in cash or in kind, given directly or indirectly to any
employer or employer’s organization to support any activity or activities
affecting trade unions.
D. Excluded Employees/ Workers
1. Managerial Employees 57
• Managerial employees are not eligible to join, assist or form any labor organization.
022 Paper Industries Corporation of the Philippines vs. Laguesma G.R. No. 101738. April 12,
2000.
Facts
• Some employees designated as “managers” were arguing that they were, in fact, not
managerial employees and thus entitled to join and form labor unions.
Held
• The mere fact that an employee is designated “manager” does not ipso facto make
him one. Designation should be reconciled with the actual job description of the
employee, for it is the job description that determines the nature of employment.
• Where the power to hire and fire is subject to evaluation, review and final action by
the department heads and other higher executives of the company, the same,
although present, is not effective and not an exercise of independent judgment as
required by law.
56
LC, Art. 285
57
LC, Art. 255
 LABOR RELATIONS
2. Confidential Employees
023 Metrolab Industries, Inc. vs. Roldan-Confesor G.R. No. 108855. February 28, 1996.
Facts
• The main issue in the case at bar is whether the executive secretaries of the
petitioner were included in the bargaining unit of rank and file employees, or with
managerial employees, hence, excluded.
Held
• Although Article 245 of the Labor Code limits the ineligibility to join, form and assist
any labor organization to managerial employees, jurisprudence has extended this
prohibition to confidential employees or those who by reason of their positions or
nature of work are required to assist or act in a fiduciary manner to managerial
employees and hence, are likewise privy to sensitive and highly confidential records.
024 Tunay ns Pagkakisa ng Manggagawa sa Asia Brewery vs. Asia Brewery, Inc. G.R. No.
162025. August 3, 2010.
Facts
• The respondent stopped collecting union dues from some 81 employees because it
believed the same were confidential employees, hence, ineligible from joining labor
unions.
Held
• Confidential employees are excluded from the rank-and-file bargaining unit. The
rationale for their separate category and disqualification to join any labor
organization is similar to the inhibition for managerial employees because if allowed
to be affiliated with a Union, the latter might not be assured of their loyalty in view
of evident conflict of interests and the Union can also become company-
denominated with the presence of managerial employees in the Union membership.
Having access to confidential information, confidential employees may also become
the source of undue advantage. Said employees may act as a spy or spies of either
party to a collective bargaining agreement.
025 San Miguel Foods, Incorporated vs. San Miguel Corporation Supervisors and Exempt Union
G.R. No. 146206. August 1, 2011.
Facts
• The ineligibility of confidential employees to join labor unions is again at issue in the
present case.
Held
• Confidential employees are defined as those who (1) assist or act in a confidential
capacity, in regard (2) to persons who formulate, determine, and effectuate
management policies in the field of labor relations. The exclusion from bargaining
units of employees who, in the normal course of their duties, become aware of
management policies relating to labor relations is a principal objective sought to be
S M I L E N O T E S ☺ | 18
accomplished by the “confidential employee rule.” A confidential employee is one
entrusted with confidence on delicate, or with the custody, handling or care and
protection of the employer’s property. Confidential employees should be excluded
from the bargaining unit, as their access to confidential information may become the
source of undue advantage.
3. Workers-Members of a Cooperative
026 Batangas-I Electric Cooperative Labor Union vs. Young No. L-62386. November 9, 1988.
Facts
• A cooperative is by its nature different from an ordinary business concern being run
either by persons, partnerships, or corporations. Its owners and/or members are the
ones who run and operate the business while the others are its employees. The
question therefore is whether a member of the cooperative, who is at the same time
an employee, may invoke the right to collective bargaining.
Held
• The Court held in the negative, saying an owner cannot bargain with himself or his
co-owners. However, in so far as it involves cooperatives with employees who are
not members or co-owners thereof, certainly such employees are entitled to
exercise the rights of all workers to organization, collective bargaining, negotiations
and others as are enshrined in the Constitution and existing laws of the country.
4. Employees of international organizations
027 International Catholic Migration Commission vs. Calleja G.R. No. 85750. September 28,
1990.
Facts
• The present case involves the claim of immunity by the petitioners from the
application of Philippine labor laws. The unions of petitioners filed Petitions for
Certification Election among its rank and file members. After being granted the
status of a specialized agency with corresponding diplomatic privileges and
immunities, they moved for the dismissal of the petition.
Held
• The Court held that diplomatic immunity has, in fact, been granted to ICMC and IRRI
and as such, they enjoy immunities accorded to international organizations, which
determination has been held to be a political question conclusive upon the Courts in
order not to embarrass a political department of Government. ICMC's and IRRI's
immunity from local jurisdiction by no means deprives labor of its basic rights
because whenever there is any abuse of privilege, the Government is free to
withdraw the privileges and immunities accorded.
 LABOR RELATIONS
5. Effect of Including Employees Outside the Bargaining Unit
• The inclusion as union members of employees outside the bargaining unit shall not
be a ground for the cancellation of the registration of the union. Said employees are
automatically deemed removed from the list of membership of said union.58
028 Samahang Manggagawa sa Charter Chemical Solidarity of Unions in the Philippines for
Empowerment and Reforms (SMCC-Super) vs. Charter Chemical and Coating Corporation G.R.
No. 169717. March 16, 2011.
Facts
• Some supervisory employees were included with rank and file employees in a labor
union. As such, the company alleged that the union registration was defective,
hence, its petition for certification election should not be granted.
Held
• The inclusion of the supervisory employees in a rank-and-file union does not divest
it of its status as a legitimate labor organization. Moreover, a union’s personality
cannot be collaterally attacked in a certification election proceedings.
6. Non-Employees
• Ambulant, intermittent and itinerant workers, self-employed people, rural workers
and those without any definite employers may form labor organizations for their
mutual aid and protection.59
7. Sanctions for Violation of Right
• Unfair labor practices of employers60
1. To interfere with, restrain or coerce employees in the exercise of their right
to self-organization;
2. To require as a condition of employment that a person or an employee
shall not join a labor organization or shall withdraw from one to which he
belongs;
3. To contract out services or functions being performed by union members
when such will interfere with, restrain or coerce employees in the exercise
of their rights to self-organization;
4. To initiate, dominate, assist or otherwise interfere with the formation or
administration of any labor organization, including the giving of financial
or other support to it or its organizers or supporters;
5. To discriminate in regard to terms and conditions of employment in order
to encourage or discourage membership in any labor organization.
Nothing in this Code or in any other law shall stop the parties from
requiring membership in a recognized collective bargaining agent as a
condition for employment, except those employees who are already
58
LC, Art. 256
59
LC, Art. 253
S M I L E N O T E S ☺ | 19
members of another union at the time of the signing of the collective
bargaining agreement.
6. To dismiss, discharge or otherwise prejudice or discriminate against an
employee for having given or being about to give testimony under this
Code;
7. To violate the duty to bargain collectively as prescribed by this Code;
8. To pay negotiation or attorney’s fees to the union or its officers or agents
as part of the settlement of any issue in collective bargaining or any other
dispute; or
9. To violate a collective bargaining agreement.
• Only the officers and agents of corporations, associations or partnerships who have
actually participated in, authorized or ratified unfair labor practices shall be held
criminally liable.
• Unfair labor practices of labor organizations61
1. To restrain or coerce employees in the exercise of their right to self-
organization. However, a labor organization 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 against an
employee, including discrimination against an employee with respect to
whom membership in such organization has been denied or to terminate
an employee on any ground other than the usual terms and conditions
under which membership or continuation of membership is made
available to other members;
3. To violate the duty, or refuse to bargain collectively with the employer,
provided it is the representative of the employees
4. To cause or attempt to cause an employer to pay or deliver or agree to pay
or deliver any money or other things of value, in the nature of an exaction,
for services which are not performed or not to be performed, including the
demand for fee for union negotiations;
5. To ask for or accept negotiation or attorney’s fees from employers as part
of the settlement of any issue in collective bargaining or any other dispute;
or
6. To violate a collective bargaining agreement.
• Only the officers, members of governing boards, representatives or agents or
members of labor associations or organizations who have actually participated in,
authorized or ratified unfair labor practices shall be held criminally liable
60
LC, Art. 259
61
LC, Art. 260
 LABOR RELATIONS S M I L E N O T E S ☺ | 20

• Procedure in collective bargaining62

o When a party desires to negotiate an agreement, it shall serve a written
notice upon the other party with a statement of its proposals. The other
party shall make a reply thereto not later than ten (10) calendar days from
receipt of such notice;
o Should differences arise on the basis of such notice and reply, either party
may request for a conference which shall begin not later than ten (10)
calendar days from the date of request.
o If the dispute is not settled, the Board shall intervene upon request of
either or both parties or at its own initiative and immediately call the
parties to conciliation meetings. The Board shall have the power to issue
subpoenas requiring the attendance of the parties to such meetings.
o During the conciliation proceedings in the Board, the parties are prohibited
from doing any act which may disrupt or impede the early settlement of
the disputes; and the Board shall exert all efforts to settle disputes
amicably and encourage the parties to submit their case to a voluntary
arbitrator.
• Penalties 63
o Any violation of the provisions of this Code declared to be unlawful or
penal in nature shall be punished with a fine of not less than One Thousand
Pesos (P1,000.00) nor more than Ten Thousand Pesos (P10,000.00) or
imprisonment of not less than three months nor more than three years, or
both such fine and imprisonment at the discretion of the court.
o In addition to such penalty, any alien found guilty shall be summarily
deported upon completion of service of sentence.
o Any provision of law to the contrary notwithstanding, any criminal offense
punished in this Code, shall be under the concurrent jurisdiction of the
Municipal or City Courts and the Courts of First Instance.
o If the offense is committed by a corporation, trust, firm, partnership,
association or any other entity, the penalty shall be imposed upon the
guilty officer or officers of such corporation, trust, firm, partnership,
association or entity.64

62 64
LC, Art. 261 LC, Art. 304
63
LC, Art. 303
 LABOR RELATIONS S M I L E N O T E S ☺ | 21

collective bargaining registered with the Department in accordance with Rule III,
PART III - LABOR ORGANIZATION
Sections 2-C and 2-D of the Implementing Rules and Regulations.71

A. Policy
029 Cebu Seamen's Association, Inc. vs. Ferrer-Calleja G.R. No. 83190. August 4, 1992.
• It is the policy of the State65
Facts
o To promote free trade unionism as an instrument for the enhancement of
• A group of employees were registered with the SEC as a non-stock corporation and
democracy and the promotion of social justice and development;
later on with the BLR as a labor union. When the union elected a new president,
o To foster the free and voluntary organization of a strong and united labor
some members revived the non-stock corporation and ousted the union president.
movement;
They now claim that the corporation was entitled to the union dues from the
o To ensure the participation of workers in decision and policy-making
employer. The question now is whether it was the SEC or the BLR that had
processes affecting their rights, duties and welfare.
jurisdiction over the issue on union dues.
Held
B. Definitions
• The Med-Arbiter and the BLR, on appeal, not the Securities and Exchange
Commission, has jurisdiction over release of union dues by different officers claiming
1. Labor Organization
to represent a union. This is because it is the registration with BLR, not with SEC that
• "Labor organization" means any union or association of employees which exists in
makes a union a legitimate labor organization.
whole or in part for the purpose of collective bargaining or of dealing with employers
concerning terms and conditions of employment.66
6. Company Union
2. Union • "Company union" means any labor organization whose formation, function or
administration has been assisted by any act defined as unfair labor practice by this
• "Union" refers to any labor organization in the private sector organized for collective
Code.72
bargaining and for other legitimate purposes.67
• It shall be unlawful for an employer to initiate, dominate, assist or otherwise
interfere with the formation or administration of any labor organization, including
3. Workers’ Association
the giving of financial or other support to it or its organizers or supporters.73
• "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 collective
C. Union Rationale
bargaining.68

4 Legitimate Labor Organization
• "Legitimate labor organization" means any labor organization duly registered with
the Department of Labor and Employment, and includes any branch or local
thereof,69 or reported with the Department in accordance with Rules III and IV of the
Implementing Rules and Regulations.70
5. Legitimate Worker’s Association
• "Legitimate Workers' Association" refers to an association of workers organized for
mutual aid and protection of its members or for any legitimate purpose other than
030 Guijarno vs. Court of lndustrial Relations No. L-28791-93. August 27, 1973.
Facts
• The company was asked by the union to dismiss some employees based on a closed-
shop provision because the union had expelled such employees.
Held
• Generally, a state may not compel ordinary voluntary associations to admit thereto
any given individual. The rule is qualified in respect of labor unions holding a
monopoly in the supply of labor, either in a given locality, or as regards a particular
employer with which it has a closed-shop agreement. Such unions are not entitled
to arbitrarily exclude qualified applicants for membership, and a closed-shop

65 70
LC, Art. 218A b, c, & g IR, Book V, Rule I, Sec. 1 ee
66 71
LC, Art. 219 g IR, Book V, Rule I, Sec. 1 ff
67 72
IR, Book V, Rule I, Sec. 1 zz LC, Art. 219 I
68 73
IR, Book V, Rule I, Sec. 1 ccc Art. 259 d
69
LC, Art. 219 h
 LABOR RELATIONS
provision would not justify the employer in discharging, or a union in insisting upon
the discharge of an employee without any reasonable ground therefor.
D. Government Regulation
1. Union Registration
a. Definition
• "Registration" refers to the process of determining whether the application for
registration of a union or workers' association and collective bargaining agreement
complies with the documentary requirements for registration.74
031 PAFLU vs. Secretary, G.R. No. L-22228, February 27, 1969.
Facts
• After having failed to submit requirements, the registration certificate of the union
was cancelled. They now assail the process of registration as curtailing their right of
assembly.
Held
• The registration prescribed is not a limitation to the right of assembly or association,
which may be exercised with or without said registration. The latter is merely a
condition sine qua non for the acquisition of legal personality by labor organizations,
associations or unions and the possession of the “rights and privileges granted by
law to legitimate labor organizations.”
b. Requirements
• Requirements of Registratlon75
o A federation, national union or industry or trade union center or an
independent union shall acquire legal personality and shall be entitled to
the rights and privileges granted by law to legitimate labor organizations
upon issuance of the certificate of registration based on the following
requirements:
1. Fifty pesos (P50.00) registration fee;
2. The names of its officers, their addresses, the principal address
of the labor organization, the minutes of the organizational
meetings and the list of the workers who participated in such
meetings;
3. In case the applicant is an independent union, the names of all
its members comprising at least twenty percent (20%) of all the
employees in the bargaining unit where it seeks to operate;
74
IR, Book V, Rule I, Sec. 1 qq
75
LC, Art. 240
76
LC, Art. 241
S M I L E N O T E S ☺ | 22
4. If the applicant union has been in existence for one or more
years, copies of its annual financial reports; and
5. Four copies of the constitution and by-laws of the applicant
union, minutes of its adoption or ratification, and the list of the
members who participated in it.
• Chartering and Creation of a Local Chapter76
o A duly registered federation or national union may directly create a local
chapter by issuing a charter certificate indicating the establishment of the
local chapter. The chapter shall acquire legal personality only for purposes
of filing a petition for certification election from the date it was issued a
charter certificate.
o The chapter shall be entitled to all other rights and privileges of a
legitimate labor organization only upon the submission of the following
documents in addition to its charter certificate:
1. The names of the chapter's officers, their addresses, and the
principal office of the chapter; and
2. The chapter's constitution and by-laws: Provided, That where
the chapter's constitution and by-laws are the same as that of
the federation or the national union, this fact shall be indicated
accordingly.
o The additional supporting requirements shall be certified under oath by
the secretary or treasurer of the chapter and attested by its president.
• Additional Requirements for Federations or National Unions77
o If the applicant for registration is a federation or a national union, it shall,
in addition, submit the following:
1. Proof of the affiliation of at least ten (10) locals or chapters, each
of which must be a duly recognized collective bargaining agent
in the establishment or industry in which it operates, supporting
the registration of such applicant; and
2. The names and addresses of the companies where the locals or
chapters operate and the list of all the members in each.
• Equity of the Incumbent78
o All existing federations and national unions which meet the qualifications
of a legitimate labor organization and none of the grounds for cancellation
shall continue to maintain their existing affiliates regardless of the nature
of the industry and the location of the affiliates.
77
LC, Art. 244
78
LC, Art. 249
 LABOR RELATIONS S M I L E N O T E S ☺ | 23

Requirements for Registration Requirements for Registration

Independent Union79 Local Chapter80 Federation or
Worker’s Association82
The chapter shall acquire legal personality National Union81
only for purposes of filing a petition for a statement indicating the name of the the name of the applicant association, its
An independent union shall acquire legal
certification election from the date it was applicant labor union, its principal address, principal address, the name of its officers
personality and shall be entitled to the
issued a charter certificate. the name of its officers and their respective and their respective addresses;
rights and privileges granted by law to
The chapter shall be entitled to all other addresses;
legitimate labor organizations upon
rights and privileges of a legitimate labor the minutes of the organizational the minutes of the organizational
issuance of the certificate of registration.
organization only upon the submission of meeting(s) and the list of employees who meeting(s) and the list of members who
the other requirements. participated in the said meeting(s); participated therein;
the name of the applicant labor union, its the names of the chapter's officers, their the annual financial reports if the applicant the financial reports of the applicant
principal address, the name of its officers addresses, and the principal office of the union has been in existence for one or more association if it has been in existence for one
and their respective addresses, chapter; years, unless it has not collected any or more years, unless it has not collected
approximate number of employees in the amount from the members, in which case a any amount from the members, in which
bargaining unit where it seeks to operate, statement to this effect shall be included in case a statement to this effect shall be
with a statement that it is not reported as a the application; included in the application;
chartered local of any federation or national the applicant union's constitution and by-
union; laws, minutes of its adoption or ratification, the applicant's constitution and by-laws to
the minutes of the organizational and the list of the members who which must be attached the names of
meeting(s) and the list of employees who - participated in it. The list of ratifying ratifying members, the minutes of adoption
participated in the said meeting(s); members shall be dispensed with where the or ratification of the constitution and by-
the name of all its members comprising at constitution and by-laws was ratified or laws and the date when ratification was
least 20% of the employees in the - adopted during the organizational made, unless ratification was done in the
bargaining unit; meeting(s). In such a case, the factual organizational meeting(s), in which case
the annual financial reports if the applicant circumstances of the ratification shall be such fact shall be reflected in the minutes of
has been in existence for one or more years, recorded in the minutes of the the organizational meeting(s).
unless it has not collected any amount from organizational meeting(s);
-
the members, in which case a statement to the resolution of affiliation of at least ten
this effect shall be included in the (10) legitimate labor organizations, whether
application; independent unions or chartered locals,
the applicant's constitution and by-laws, each of which must be a duly certified or -
minutes of its adoption or ratification, and recognized bargaining agent in the
the list of the members who participated in The chapter's constitution and by-laws: establishment where it seeks to operate;
it. The list of ratifying members shall be Provided, That where the chapter's and
dispensed with where the constitution and constitution and by-laws are the same as the name and addresses of the companies
by-laws was ratified or adopted during the that of the federation or the national union, where the affiliates operate and the list of -
organizational meeting. In such a case, the this fact shall be indicated accordingly. all the members in each company involved.
factual circumstances of the ratification
shall be recorded in the minutes of the
organizational meeting(s).

79 82
IR, Book V, Rule III, Sec. 2 A IR, Book V, Rule III, Sec. 2 C
80
LC, Art. 241
81
IR, Book V, Rule III, Sec. 2 B
 LABOR RELATIONS
• Labor organizations operating within an identified industry may also apply for
registration as a federation or national union within the specified industry by
submitting to the Bureau the same set of documents. 83
• Application for registration of a workers' association operating in more than one
region shall be accompanied, in addition to the requirements, by a resolution of
membership of each member association, duly approved by its board of directors. 84
032 San Miguel Corp. Employees Union v. SM Packing, 533 SCRA 125 (2007)
Facts
• The issue at bar is whether or not a trade union center has the capacity to create a
local chapter through chartering.
Held
• The Court held in the negative. The term trade union center was never mentioned
under the Labor Code in identifying the labor organizations allowed to charter a
chapter or local. Since under the pertinent status and applicable implementing rules,
the power granted to labor organizations to directly create a chapter or local through
chartering is given to a federation or national union, then a trade union center is
without authority to charter directly.
033 Progressive Development Corp. v. Secretary of Labor, 205 SCRA 802 (1992)
Facts
• The company here contends that the local chapter has to follow the requirement of
submitting a list of the names of all its members comprising at least 20% of the
employees in the bargaining unit before it can be considered as a legitimate labor
organization.
Held
• The Court held that such requirement only applies to independent unions and not to
local chapters. The intent of the law in imposing lesser requirements in the case of
a branch or local of a registered federation or national union is to encourage the
affiliation of a local union with a federation or national union in order to increase the
local union's bargaining powers respecting terms and conditions of labor.
83
IR, Book V, Rule III, Sec. 2 B
84
IR, Book V, Rule III, Sec. 2 D
85
IR, Book V, Rule IV, Sec. 4
86
LC, Art. 242
87
IR, Book V, Rule IV, Sec. 5
S M I L E N O T E S ☺ | 24
034 Takata (Philippines) Corporation v. BLR, G.R. No. 196276, June 4, 2014
Facts
• The union’s registration is sought to be cancelled on the ground that the list of
workers who participated in the organizational meeting did not comprise 20% of the
employees in the bargaining unit it sought to represent.
Held
• It does not appear in the Labor Code that the attendees in the organizational
meeting must comprise 20% of the employees in the bargaining unit. Clearly, the
20% minimum requirement pertains to the employees’ membership in the union and
not to the list of workers who participated in the organizational meeting.
c. Action on Application
• The Bureau shall act on all applications for registration or notice of change of name,
affiliation, merger and consolidation within ten (10) days from receipt either by:
(a) approving the application and issuing the certificate of
registration/acknowledging the notice/report; or
(b) denying the application/notice for failure of the applicant to comply with
the requirements for registration/notice.85
• All requisite documents and papers shall be certified under oath by the secretary or
the treasurer of the organization, as the case may be, and attested to by its
president.86
• Where the documents supporting the application are incomplete, the Regional
Office or the Bureau shall, within five (5) days from receipt of the application/notice,
notify the applicant/labor organization complete the same within thirty (30) days
from receipt of notice. Where the applicant/labor organization concerned fails to
complete the requirements, the application shall be denied, without prejudice to
filing a new application or notice.87
• The notice of the Regional Office or the Bureau denying the application shall be in
writing stating in clear terms the reasons for the denial or return. 88 The same may
be appealed to the Bureau within ten (10) days from receipt of notice thereof. 89
• The memorandum of appeal shall be filed with the Regional Office or the Bureau that
issued the denial/return of notice. The memorandum of appeal together with the
complete records of the application shall be transmitted by the Regional Office to
the Bureau or by the Bureau to the Office of the Secretary, within twenty-four (24)
hours from receipt of the memorandum of appeal. The Bureau or the Office of the
Secretary shall decide the appeal within twenty (20) days from receipt of the records
of the case.90
88
IR, Book V, Rule IV, Sec. 6
89
LC, Art. 243
90
IR, Book V, Rule IV, Sec. 7
 LABOR RELATIONS S M I L E N O T E S ☺ | 25

Who issued denial Transmitted to f. Rights of Legitimate Labor Organization95

Regional office → Bureau • A legitimate labor organization shall have the right:
Bureau → Office of the Secretary 1. To act as the representative of its members for the purpose of collective
bargaining;
d. Effect of Registration 2. To be certified as the exclusive representative of all the employees in an
• The labor union or workers' association shall be deemed registered and vested with appropriate bargaining unit for purposes of collective bargaining;
legal personality on the date of issuance of its certificate of registration or certificate 3. To be furnished by the employer, upon written request, with its annual
of creation of chartered local. Such legal personality may be questioned only through audited financial statements, within thirty (30) calendar days from the
an independent petition for cancellation of union registration, and not by way of date of receipt of the request, after the union has been duly recognized by
collateral attack in petition for certification election proceedings 91 the employer or certified as the sole and exclusive bargaining
• The report of creation of a chartered local shall be accompanied by a charter representative in the bargaining unit, or within sixty (60) calendar days
certificate issued by the federation or national union indicating the creation or before the expiration of the existing collective bargaining agreement, or
establishment of the chartered local.92 during the collective bargaining negotiation;
4. To own property, real or personal, for the use and benefit of the labor
035 Legend International Resorts Limited v. Kilusang Manggagawa ng Legenda, G.R. organization and its members;
No.169754, February 23, 2011 5. To sue and be sued in its registered name; and
Facts 6. To undertake all other activities designed to benefit the organization and
• The company moved to dismiss a petition for certification election filed by the union, its members, including cooperative, housing, welfare and other projects
alleging that the latter is not a legitimate labor organization because its membership not contrary to law.
is a mixture of rank and file and supervisory employees. • The income and the properties of legitimate labor organizations, including grants,
Held endowments, gifts, donations and contributions they may receive from fraternal and
• An order to hold a certification election is proper despite the pendency of the similar organizations, local or foreign, which are actually, directly and exclusively
petition for cancellation of the registration certificate of the respondent union. used for their lawful purposes, shall be free from taxes, duties and other
Moreover, the legitimacy of the legal personality may not be subject to a collateral assessments. The exemptions provided herein may be withdrawn only by a special
attack but only through a separate action instituted particularly for the purpose of law expressly repealing this provision.
assailing it. Once a certificate of registration is issued to a union, its legal personality
cannot be subject to a collateral attack. 036 Acedera v. International Container Terminal Services, Inc., G.R. No. 146073, January 13,
2003
e. Acquisition of Legal Personality Facts
• Employees sought to intervene in a case against the employer regarding the divisor
Independent Union93 Local Chapter94 used in computing their wages. The motion to intervene was denied on the ground
The chapter shall acquire legal personality that those employees were already represented by the union in the case.
only for purposes of filing a petition for Held
An independent union shall acquire legal
certification election from the date it was • A labor union a party authorized to represent its members under Article 242(a) of
personality and shall be entitled to the
issued a charter certificate. the Labor Code which provides that a union may act as the representative of its
rights and privileges granted by law to
The chapter shall be entitled to all other members for the purpose of collective bargaining. A person whose interests are
legitimate labor organizations upon
rights and privileges of a legitimate labor already represented will not be permitted to do the same except when there is
issuance of the certificate of registration.
organization only upon the submission of
suggestion of fraud or collusion or that the representative will not act in good faith
the other requirements.
for the protection of all interests represented by him.

91 94
IR, Book V, Rule IV, Sec. 8 LC, Art. 241
95
92
IR, Book V, Rule III, Sec. 2 par E LC, Art. 251
93
IR, Book V, Rule III, Sec. 2 A
 LABOR RELATIONS
g. Effects on Non-Registration96
• The labor union or workers' association shall be deemed registered and vested with
legal personality on the date of issuance of its certificate of registration or certificate
of creation of chartered local.
• Such legal personality may be questioned only through an independent petition for
cancellation of union registration in accordance with Rule XIV of these Rules, and not
by way of collateral attack in petition for certification election proceedings under
Rule VIII.
037 Tropical Hut Employees Union v. Tropical Hut Food Market, Inc., 181 SCRA 173 (1990)
Facts
• When the local union disaffiliated from the mother union, the company enforced the
union security clause and dismissed the members of the local union.
Held
• The right of a local union to disaffiliate from its mother federation is well-settled. A
local union, being a separate and voluntary association, is free to serve the interest
of all its members including the freedom to disaffiliate when circumstances warrant.
• When the local union withdrew from the old federation to join a new federation, it
was merely exercising its primary right to labor organization for the effective
enhancement and protection of common interests. In the absence of enforceable
provisions in the federation’s constitution preventing disaffiliation of a local union,
a local may sever its relationship with its parent.
2. Cancellation of Union Certificate of Registration
• Cancellation of Registration97
o The certificate of registration, whether national or local, may be cancelled
by the Bureau, after due hearing, only on the following grounds:
▪ Grounds for Cancellation of Union Registration:98
(a) 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, and the list of members who
took part in the ratification;
(b) Misrepresentation, false statements or fraud in
connection with the election of officers, minutes of the
election of officers, and the list of voters;
(c) Voluntary dissolution by the members.
96
IR, Book V, Rule IV, Sec. 8
97
LC, Art. 245
98
LC, Art. 247
99
LC, Art. 246
S M I L E N O T E S ☺ | 26
• Effect of a Petition for Cancellation of Registration99
o 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.
• Rights and Conditions of Membership in a Labor Organization100
o Every income or revenue of the organization shall be evidenced by a record
showing its source, and every expenditure shall be evidenced by a receipt.
Such record or receipt shall form part of the financial records of the
organization.
o Any action involving the funds of the organization shall prescribe after
three (3) years from the date of submission of the annual financial report
to the Department of Labor and Employment or from the date the same
should have been submitted as required by law, whichever comes earlier.
o That failure of any labor organization to comply with the periodic financial
reports required by law six (6) months after the effectivity of this Act shall
automatically result in the cancellation of union registration of such labor
organization.
o Any violation of the rights and conditions of membership shall be a ground
for cancellation of union 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 report such
violation to the Bureau. The Bureau shall have the power to hear and
decide any reported violation to mete the appropriate penalty. Criminal
and civil liabilities arising from violations of above rights and conditions of
membership shall continue to be under the jurisdiction of ordinary courts.
• Voluntary Cancellation of Registration101
o The registration of a legitimate labor organization may be cancelled by the
organization itself when at least two-thirds of its general membership
votes, in a meeting duly called for that purpose to dissolve the
organization. An application to cancel registration should thereafter be
submitted by the board of the organization, attested to by the president
thereof.
• Cancellation Proceedings102
o This refers to the legal process leading to the revocation of the legitimate
status of a union or workers' association.
100
LC, Art. 250
101
LC, Art. 248
102
IR, Book V, Rule I, Sec. 1(g)
 LABOR RELATIONS
• Procedure for Cancellation103
o Where to File
▪ Subject to the requirements of notice and due process, the
registration may be cancelled upon the filing of an independent
complaint or petition for cancellation.
Who Where to File
Independent labor unions chartered
Regional Director
local and workers' association
Federations, national or industry
Bureau Director
unions and trade union centers
o Who May File
▪ Any party-in-interest may commence a petition for cancellation
of registration, except in actions involving violations of Art. 250,
(Rights and Conditions of Membership in a Labor Organization)
which can only be commenced by members of the labor
organization concerned.
o Grounds for Cancellation
(a) 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, the list of
members who took part in the ratification of the constitution
and by-laws or amendments thereto, the minutes of ratification,
the list of members who took part in the ratification;
(b) failure to submit the documents mentioned in the preceding
paragraph within thirty (30) days from adoption or ratification of
the constitution and by-laws or amendments thereto;
(c) misrepresentation, false statements or fraud in connection with
the election of officers, minutes of the election of officers, the
list of voters, failure to submit these documents together with
the list of the newly elected or appointed officers and their
postal address within thirty (30) days from election;
(d) failure to submit the annual financial report to the Bureau within
thirty (30) days after the close of every fiscal year and
misrepresentation, false entries or fraud in the preparation of
the financial report;
(e) acting as a labor contractor or engaging in the "cabo" system, or
otherwise engaging in any activity prohibited by law;
103
IR, Rule XIV
S M I L E N O T E S ☺ | 27
(f) entering into collective bargaining agreements which provide for
terms and conditions of employment below minimum standards
established by law;
(g) commission of any of the acts enumerated under Article 250 of
the Labor Code; provided that no petition for cancellation based
on this ground may be granted unless supported by at least thirty
(30%) percent of all the members of the respondent labor
organization;
(h) asking for or accepting attorney's fees or negotiation fees from
the employer;
(i) other than for mandatory activities under the Labor Code,
checking off special assessments or any other fees without duly
signed individual written authorizations of the members;
(j) failure to submit list of individual members to the Bureau once a
year or whenever required by the Bureau;
(k) failure to comply with the requirements of registration.
o Action on the Petition
▪ The petition shall be resolved by the Regional Director unless the
petition is based on paragraphs (d) and (j) in which case the
petition shall be acted upon by the Bureau Director.
038 Air Phil. Corp. v. BLR, 492 SCRA 243 (2006);
Facts
• The union here was a mixture of both rank and file members as well as supervisory
employees. As such, an issue arose as to whether or not its certification of
registration may be cancelled on that ground.
Held
• The Court held in the negative. For the purpose of de-certifying a union, it is not
enough to establish that the rank-and-file union includes ineligible employees in its
membership. The rule under Article 245 of the Labor Code barring supervisory
employees from joining the union of rank-and-file employees is not a ground for
cancellation of union registration.
 LABOR RELATIONS
039 S.S. Ventures International, Inc. v. S.S. Ventures Labor Union, G.R. No. 161690, July 23,
2008;
Facts
• The certificate of registration of the union was sought to be cancelled on the ground
that there were handwritten statements of 82 employees saying that there were
unwilling or harassed signatories to the attendance sheet of the organizational
meeting.
Held
• The employees’ withdrawal from a labor union made before the filing of the petition
for certification election is presumed voluntary, while withdrawal after the filing of
such petition is considered to be involuntary and does not affect the same.
Therefore, if a withdrawal from union membership done after a petition for
certification election has been filed does not vitiate such petition, is it but logical to
assume that such withdrawal cannot work to nullify the registration of the union.
040 Mariwasa Siam Ceramics, Inc. v. The Secretary of the Department of Labor and
Employment, et al., G.R. No. 183317, December 21, 2009;
Facts
• The company insists that the union failed to comply with the 20% union membership
requirement for its registration because of the disaffiliation of 102 employees who
executed affidavits recanting their union membership.
Held
• In the instant case, the affidavits of recantation were executed after the identities of
the union members became public. The logical conclusion, therefore, following
jurisprudence, is that the employees were not totally free from the employer’s
pressure, and so the voluntariness of the employees’ execution of the affidavits
becomes suspect. As such, the withdrawal cannot work to nullify the registration of
the union.
041 The Heritage Hotel Manila v. National Union of Workers in the Hotel, Restaurant and Allied
Industries-Heritage Hotel Manila Supervisors Chapter (NUWHRAIN-HHMSC), G.R. No. 178296,
January 12, 2011;
Facts
• The issue at bar is whether upon determination of the presence of the grounds
enumerated for cancellation of registration, the Duty of the Regional Director
becomes ministerial to cancel the same.
Held
• The Court held in the negative. The provisions of the Labor Code give the Regional
Director ample discretion in dealing with a petition for cancellation of a union’s
104
LC, Art. 284
S M I L E N O T E S ☺ | 28
registration. It is sufficient to give the Regional Director license to treat the late filing
of required documents as sufficient compliance with the requirements of the law.
042 Takata (Philippines) Corporation v. BLR, G.R. No. 196276, June 4, 2014 SUPRA
Facts
• The union’s registration is sought to be cancelled on the ground that the list of
workers who participated in the organizational meeting did not comprise 20% of the
employees in the bargaining unit it sought to represent.
Held
• It does not appear in the Labor Code that the attendees in the organizational
meeting must comprise 20% of the employees in the bargaining unit. Moreover,
after the issuance of the certificate of registration, the labor organization’s
registration could be assailed only though a direct cancellation of registration
proceedings. For fraud and misrepresentation to be grounds for cancellation of
union registration under Article 239 of the Labor Code, the nature of the fraud and
misrepresentation must be grave and compelling enough to vitiate the consent of a
majority of union members.
E. International Activities of Union
• Prohibition Against Aliens; Exceptions104
o General Rule
▪ All aliens, natural or juridical, as well as foreign organizations are
strictly prohibited from exercising the right to self-organization
without prejudice to normal contacts between Philippine labor
unions and recognized international labor centers.
o Exception
▪ Aliens working in the country with valid permits issued by the
Department of Labor and Employment, may exercise the right to
self-organization if such aliens are nationals of a country which
grants the same or similar rights to Filipino workers.
• Regulations of Foreign Assistance105
(a) No foreign individual, organization or entity may give any donations, grants
or other forms of assistance to any labor organization, group of workers or
any auxiliary thereof in relation to trade union activities, without prior
permission by the Secretary of Labor.
"Trade union activities" shall mean:
(1) organization, formation and administration of labor
organization;
105
LC, Art. 285
 LABOR RELATIONS
(2) negotiation and administration of collective bargaining
agreements;
(3) all forms of concerted union action;
(4) organizing, managing, or assisting union conventions, meetings,
rallies, referenda, teach-ins, seminars, conferences and
institutes;
(5) any form of participation or involvement in representation
proceedings, representation elections, consent elections, union
elections; and
(6) other activities or actions analogous to the foregoing.
(b) This prohibition shall equally apply to foreign donations, grants or other
forms of assistance to any employer or employer's organization to support
any activity or activities affecting trade unions.
(c) The Secretary of Labor shall promulgate rules and regulations to regulate
and control the giving and receiving of such donations, grants, or other
forms of assistance, including the mandatory reporting of the amounts of
the donations or grants, the specific recipients thereof, the projects or
activities proposed to be supported, and their duration.
• Applicability to Farm Tenants and Rural Workers106
o The provisions pertaining to foreign organizations and activities shall be
deemed applicable likewise to all organizations of farm tenants, rural
workers and the like. However, in appropriate cases, the Secretary of
Agrarian Reform shall exercise the powers and responsibilities vested in
the Secretary of Labor.
F. Union – Member Relations
• Rights and Conditions of Membership in a Labor Organization107
(a) No arbitrary or excessive initiation fees shall be required nor shall
arbitrary, excessive or oppressive fine and forfeiture be imposed;
(b) The members shall be entitled to full and detailed reports of all financial
transactions as provided for in the constitution and by-laws of the
organization;
(c) The members shall directly elect their officers in the local union, as well as
their national officers in the national union or federation to which they or
their local union is affiliated, by secret ballot at intervals of five (5) years.
▪ No qualification requirement for candidacy to any position shall
be imposed other than membership in good standing in subject
labor organization.
106
LC, Art. 286
S M I L E N O T E S ☺ | 29
(d) The members shall determine by secret ballot, after due deliberation, any
question of major policy affecting the entire membership of the
organization, unless the nature of the organization or force majeure
renders such secret ballot impractical, in which case, the board of directors
of the organization may make the decision;
(e) No labor organization shall knowingly admit as members or continue in
membership any individual who belongs to a subversive organization or
who is engaged directly or indirectly in any subversive activity; (No longer
in force since the crime of subversion has been abolished)
(f) No person who has been convicted of a crime involving moral turpitude
shall be eligible for election as a union officer or for appointment to any
position in the union;
(g) No officer, agent or member of a labor organization shall collect any fees,
dues, or other contributions in its behalf or make any disbursement of its
money or funds unless he is duly authorized pursuant to its constitution
and by-laws;
(h) Every payment of fees, dues or other contributions by a member shall be
evidenced by a receipt signed by the officer or agent making the collection
and entered into the record of the organization to be kept and maintained
for the purpose;
(i) The funds of the organization shall not be applied for any purpose or object
other than those expressly provided by its constitution and by-laws or
those expressly authorized by written resolution adopted by the majority
of the members at a general meeting duly called for the purpose;
(j) Every income or revenue of the organization shall be evidenced by a record
showing its source, and every expenditure shall be evidenced by a receipt.
Such record or receipt shall form part of the financial records of the
organization.
Any action involving the funds of the organization shall prescribe after
three (3) years from the date of submission of the annual financial report
to the Department of Labor and Employment or from the date the same
should have been submitted as required by law, whichever comes earlier.
That failure of any labor organization to comply with the periodic financial
reports required by law six (6) months after the effectivity of this Act shall
automatically result in the cancellation of union registration of such labor
organization;
(k) The officers of any labor organization shall not be paid any compensation
other than the salaries and expenses due to their positions as specifically
provided for in its constitution and by-laws, or in a written resolution duly
107
LC, Art. 250
 LABOR RELATIONS
authorized by a majority of all the members at a general membership
meeting duly called for the purpose.
The minutes of the meeting and the list of participants and ballots cast
shall be subject to inspection by the Secretary of Labor or his duly
authorized representatives. Any irregularities in the approval of the
resolutions shall be a ground for impeachment or expulsion from the
organization;
(l) The treasurer of any labor organization and every officer thereof who is
responsible for the account of such organization or for the collection,
management, disbursement, custody or control of the funds, moneys and
other properties of the organization, shall render to the organization and
to its members a true and correct account of all moneys received and paid
by him since he assumed office or since the last day on which he rendered
such account, and of all bonds, securities and other properties of the
organization entrusted to his custody or under his control. The rendering
of such account shall be made:
(1) At least once a year within thirty (30) days after the close of its
fiscal year:
(2) At such other times as may be required by a resolution of the
majority of the members of the organization; and
(3) Upon vacating his office.
The account shall be duly audited and verified by affidavit and a copy
thereof shall be furnished the Secretary of Labor.
(m) The books of accounts and other records of the financial activities of any
labor organization shall be open to inspection by any officer or member
thereof during office hours;
(n) No special assessment or other extraordinary fees may be levied upon the
members of a labor organization unless authorized by a written resolution
of a majority of all the members in a general membership meeting duly
called for the purpose.
(o) Other than for mandatory activities under the Code, no special
assessments, attorney's fees, negotiation fees or any other extraordinary
fees may be checked off from any amount due to an employee without an
individual written authorization duly signed by the employee. The
authorization should specifically state the amount, purpose and
beneficiary of the deduction; and
(p) It shall be the duty of any labor organization and its officers to inform its
members on the provisions of its constitution and by-laws, collective
108
LC, Art. 260
S M I L E N O T E S ☺ | 30
bargaining agreement, the prevailing labor relations system and all their
rights and obligations under existing labor laws.
• For this purpose, registered labor organizations may assess reasonable dues to
finance labor relations seminars and other labor education activities.
• Any violation of the above rights and conditions of membership shall be a ground for
cancellation of union 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 report such violation to the Bureau. The
Bureau shall have the power to hear and decide any reported violation to mete the
appropriate penalty.
• Criminal and civil liabilities arising from violations of above rights and conditions of
membership shall continue to be under the jurisdiction of ordinary courts.
• Unfair Labor Practices of Labor Organizations108
o It shall be unfair labor practice for a labor organization, its officers, agents
or representatives:
(a) To restrain or coerce employees in the exercise of their right to
self- organization. However, a labor organization shall have the
right to prescribe its own rules with respect to the acquisition or
retention of membership;
043 UST Faculty Union v. Bitonio, G.R. No. 131235, November 16, 1999
Facts
• Petitioners claim that the numerous anomalies allegedly committed by the private
respondents during the latter’s incumbency impelled the election of the new set of
union officers.
Held
• Members’ frustration over the performance of the union officers, as well as their
fears of a “fraudulent” election to be held under the latter’s supervision, could not
justify the disregard of the union’s constitution and by-laws. The union’s constitution
and by-laws are the fundamental laws that govern the relationship between and
among the members of the union. It is where the rights, duties and obligations,
powers, functions and authority of the officers as well as the members are defined.
It is the organic law that determines the validity of acts done by any officer or
member of the union.
 LABOR RELATIONS
1. Admission and Discipline of Members
• A labor organization shall have the right to prescribe its own rules with respect to
the acquisition or retention of membership.109
• No arbitrary or excessive initiation fees shall be required of the members of a
legitimate labor organization nor shall arbitrary, excessive or oppressive fine and
forfeiture be imposed.110
• No labor organization shall knowingly admit as members or continue in membership
any individual who belongs to a subversive organization or who is engaged directly
or indirectly in any subversive activity. 111
• Any employee, whether employed for a definite period or not, shall, beginning on
his first day of service, be considered as an employee for purposes of membership
in any labor union.112
044 Salunga v. CIR, 21 SCRA 216 (1967);
Facts
• Salunga was refused admission in the union due to his critical attitude towards
certain measures taken by the union as he had been criticizing and objecting to what
he believed were illegal or irregular disbursements of union funds.
Held
• General Rule
o A state may not compel ordinary voluntary associations to admit thereto
any given individual, because membership therein may be accorded or
withheld as a matter of privilege.
• Exception
o The rule is qualified in respect of labor unions holding a monopoly in the
supply of labor, either in a given locality or as regards a particular employer
with which it has a closed-shop agreement. The reason is that the closed
shop and the union shop cause the admission requirements of trade
unions to become affected with public interest.
• It is well settled that labor unions are not entitled to arbitrarily exclude qualified
applicants for membership, and a closed-shop provision would not justify the
employer in discharging, or a union in insisting upon the discharge of, an employee
whom the union thus refuses to admit to membership, without any reasonable
ground therefor. Needless to say, if said unions may be compelled to admit new
members who have the requisite qualifications, with more reason may the law and
the courts exercise the coercive power when the employee involved is a long
standing union member who, owing to provocations of union officers, was impelled
to tender his resignation, which he forthwith withdrew or revoked.
109
LC, Art. 260
110
LC, Art. 250 a
111
LC, Art. 250 e
112
LC, Art. 292 c
S M I L E N O T E S ☺ | 31
045 Villar v. Inciong, 121 SCRA 444 (1983)
Facts
• The Company and the union entered into a CBA with a union security clause. Hence,
the company dismissed Villar et al. for non-union membership upon their expulsion
from the general membership of the union.
Held
• A closed shop is a valid form of union security, and such provision in a collective
bargaining agreement is not a restriction of the right of freedom of association
guaranteed by the Constitution.
Due Process
046 Bugay v. Kapisanan ng mga Manggagawa sa MRR, 4 SCRA 487 (1962)
Facts
• Charges for disloyalty and conduct unbecoming a union member were filed against
Bugay and he was expelled from the union. As a result, he filed a charge for unfair
labor practice against the union.
Held
• The Court found that Bugay did not have sufficient opportunity to defend himself.
Such proceedings, being violative of the elementary rule of justice and fair play,
cannot give validity to any act done pursuant thereto.
2. Election of Officers
• The members shall directly elect their officers in the local union, as well as their
national officers in the national union or federation to which they or their local union
is affiliated, by secret ballot at intervals of five (5) years.
o No qualification requirement for candidacy to any position shall be
imposed other than membership in good standing in subject labor
organization.113
o No person who has been convicted of a crime involving moral turpitude
shall be eligible for election as a union officer or for appointment to any
position in the union.114
• Election of Officers of Labor Unions and Workers Associations115
o Conduct of Election of Union Officers; Procedure in the Absence of
Provisions in the Constitution and By-laws
(a) within sixty (60) days before the expiration of the term of the
incumbent officers, the president of the labor organization shall
constitute a committee on election to be composed of at least
113
LC, Art. 250 c
114
LC, Art. 250 f
115
IR, Book V, Rule XII
 LABOR RELATIONS S M I L E N O T E S ☺ | 32

three (3) members who are not running for any position in the
election, provided that if there are identifiable parties within the
labor organization, each party shall have equal representation in
the committee;
(b) upon constitution, the members shall elect the chairman of the
committee from among themselves, and case of disagreement,
the president shall designate the chairman;
(c) within ten (10) days from its constitution, the committee shall,
among others, exercise the following powers and duties:
(1) set the date, time and venue of the election;
(2) prescribe the rules on the qualification and eligibility
of candidates and voters;
(3) prepare and post the voters' list and the list of qualified
candidates;
(4) accredit the authorized representatives of the
contending parties;
(5) supervise the actual conduct of the election and
canvass the votes to ensure the sanctity of the ballot;
(6) keep minutes of the proceedings;
(7) be the final arbiter of all election protests;
(8) proclaim the winners; and
(9) prescribe such other rules as may facilitate the orderly
conduct of election.
o Dispute Over Conduct of Election of Officers
▪ Where the terms of the officers have expired and its officers
failed or neglected to do so call for an election of new officers,
or where the constitution and by-laws do not provide for the
manner by which the election can be called or conducted and
the intervention of the Department is necessary, at least thirty
percent (30%) of the members of the labor organization may file
a petition for the conduct of election.
Who Where to File
Regional Office that issued
Independent labor unions
its certificate of registration
chartered local and workers'
or certificate of creation of
association
chartered local.
Federations, national or Bureau or the Regional
industry unions and trade Office but shall be heard and
union centers resolved by the Bureau.
▪ This rule shall also apply where a conduct of election is an
alternative relief or necessary consequence of a petition for
nullification/impeachment/expulsion of officers.
o Applicability of the Provisions of the Labor Organization's Constitution and
By-laws
▪ Where the conduct of election of officers is ordered by the Med-
Arbiter, the Bureau or Office of the Secretary, the rules and
regulations governing the filing of candidacies and conduct of
election under the constitution and by-laws of the labor
organization may be applied in the implementation of the
decision, or new and additional rules may be adopted as agreed
upon by the parties
▪ The entire proceedings shall be presided by the Election Officer
from the Labor Relations Division of the Regional Office or the
Bureau. He/She shall act as the COMELEC referred to in the labor
organization's constitution and by-laws.
No qualification requirement for candidacy to any position shall be
imposed other than membership in good standing in subject labor
organization.116
Qualifications
No person who has been convicted of a crime involving moral
turpitude shall be eligible for election as a union officer or for
appointment to any position in the union.117
Manner of election By secret ballot118
Tenure 5 years119
Compensation Shall not be paid any compensation other than the salaries and
expenses due to their positions as specifically provided for in its
constitution and by-laws, or in a written resolution duly authorized
by a majority of all the members.120
Local unions: Members of the local union
Who may vote
National union or federation: Members of affiliated unions
047 Tancinco v. Calleja, 157 SCRA 203 (1988)
Facts
• Here, a question on the eligibility of voters arose from the fact that some employees
were not yet union members at the time of election.
Held
• Submission of the employee’s names with the BLR as qualified members of the union
is not a condition sine qua non to enable said members to vote in the election of
union’s officers. It is true that under the Labor Code only members of the union can

116 119
LC, Art. 250 c Id.
117 120
LC, Art. 250 f LC, Art. 250 k
118
LC, Art. 250 c
 LABOR RELATIONS
participate in the election of union officers. The question however of eligibility to
vote may be determined through the use of the applicable payroll period and
employee’s status during the applicable payroll period. In the case at bar, the
employees were ruled to be qualified for membership and their act of joining the
election by casting their votes is a clear manifestation of their intention to join the
union. They must therefore be considered ipso facto members thereof.
F. Effect of election
048 Kapisanan v. Trajano, 134 SCRA 236 (1985)
Facts
• Some officers were found to have disbursed union funds. The Med-Arbiter called for
a referendum to decide the issue.
Held
• The Court held that the proper action was to mete out the penalty of expulsion and
not to call for a referendum. Moreover, the issue of referendum has become moot
and academic. The Court should never remove a public officer for acts done prior to
his present term of office. To do otherwise would be to deprive the people of their
right to elect their officers. When the people have elected a man to office, it must
be assumed that they did this with knowledge of his life and character, and that they
disregarded or forgave his faults or misconduct, if he had been guilty of any.
3. Major policy matter
• The members shall determine by secret ballot, after due deliberation, any question
of major policy affecting the entire membership of the organization, unless the
nature of the organization or force majeure renders such secret ballot impractical,
in which case, the board of directors of the organization may make the decision in
behalf of the general membership.121
4. Union funds
(a) No arbitrary or excessive initiation fees shall be required of the members of a legitimate labor
organization nor shall arbitrary, excessive or oppressive fine and forfeiture be imposed;
(b) The members shall be entitled to full and detailed reports from their officers and
representatives of all financial transactions as provided for in the constitution and by-laws of
the organization;
(c) The secretary or any other responsible union officer shall furnish the Secretary of Labor and
Employment with a list of the newly-elected officers, together with the appointive officers or
agents who are entrusted with the handling of funds within thirty (30) calendar days after the
election of officers or from the occurrence of any change in the list of officers of the labor
organization;
xxx
121
LC, Art. 250 d
S M I L E N O T E S ☺ | 33
(g) No officer, agent or member of a labor organization shall collect any fees, dues, or other
contributions in its behalf or make any disbursement of its money or funds unless he is duly
authorized pursuant to its constitution and by-laws;
(h) Every payment of fees, dues or other contributions by a member shall be evidenced by a receipt
signed by the officer or agent making the collection and entered into the record of the
organization to be kept and maintained for the purpose;
(i) The funds of the organization shall not be applied for any purpose or object other than those
expressly provided by its constitution and by-laws or those expressly authorized by written
resolution adopted by the majority of the members at a general meeting duly called for the
purpose;
(j) Every income or revenue of the organization shall be evidenced by a record showing its source,
and every expenditure shall be evidenced by a receipt. Such record or receipt shall form part
of the financial records of the organization.
Any action involving the funds of the organization shall prescribe after three (3) years from the
date of submission of the annual financial report to the Department of Labor and Employment
or from the date the same should have been submitted as required by law, whichever comes
earlier.
That failure of any labor organization to comply with the periodic financial reports required by
law six (6) months after the effectivity of this Act shall automatically result in the cancellation
of union registration of such labor organization;
(k) The officers of any labor organization shall not be paid any compensation other than the
salaries and expenses due to their positions as specifically provided for in its constitution and
by-laws, or in a written resolution duly authorized by a majority of all the members at a general
membership meeting duly called for the purpose.
The minutes of the meeting and the list of participants and ballots cast shall be subject to
inspection by the Secretary of Labor or his duly authorized representatives. Any irregularities
in the approval of the resolutions shall be a ground for impeachment or expulsion from the
organization;
(l) The treasurer of any labor organization and every officer thereof who is responsible for the
account of such organization or for the collection, management, disbursement, custody or
control of the funds, moneys and other properties of the organization, shall render to the
organization and to its members a true and correct account of all moneys received and paid by
him since he assumed office or since the last day on which he rendered such account, and of
all bonds, securities and other properties of the organization entrusted to his custody or under
his control. The rendering of such account shall be made:
(1) At least once a year within thirty (30) days after the close of its fiscal year:
(2) At such other times as may be required by a resolution of the majority of the
members of the organization; and
(3) Upon vacating his office.
The account shall be duly audited and verified by affidavit and a copy thereof shall be furnished
the Secretary of Labor.
 LABOR RELATIONS
(m) The books of accounts and other records of the financial activities of any labor organization
shall be open to inspection by any officer or member thereof during office hours;
(n) No special assessment or other extraordinary fees may be levied upon the members of a labor
organization unless authorized by a written resolution of a majority of all the members in a
general membership meeting duly called for the purpose.
(o) Other than for mandatory activities under the Code, no special assessments, attorney's fees,
negotiation fees or any other extraordinary fees may be checked off from any amount due to
an employee without an individual written authorization duly signed by the employee. The
authorization should specifically state the amount, purpose and beneficiary of the deduction;
and
• Administration of Trade Union Funds and Actions Arising Therefrom122
o Right of Union to Collect Dues and Agency Fees
▪ The incumbent bargaining agent shall continue to be entitled to
check-off and collect dues and agency fees despite the pendency
of a representation case, other inter/intra-union disputes or
related labor relations disputes.
o Visitorial Power Under
▪ The Regional or Bureau Director may inquire into the financial
activities of any legitimate labor organization and examine their
books of accounts and other records to determine compliance
with the law and the organization's constitution and by-laws.
Such examination shall be made upon the filing of a request or
complaint for the conduct of an accounts examination by any
member of the labor organization, supported by the written
consent of at least twenty (20%) percent of its total membership.
o Where to File
▪ A request for examination of books of accounts shall be filed with
the Regional Office that issued its certificate of registration or
certificate of creation of chartered local.
▪ A request for examination of books of accounts of federations or
national unions and trade union centers shall be filed with the
Bureau. Such request or complaint, in the absence of allegations
pertaining to a violation of Article 250, shall not be treated as an
intra-union dispute and the appointment of an Audit Examiner
by the Regional or Bureau Director shall not be appealable.
o Actions Arising from Article 250
▪ Any complaint or petition with allegations of mishandling,
misappropriation or non-accounting of funds in violation of
Article 250 shall be treated as an intra-union dispute. It shall be
heard and resolved by the Med-Arbiter pursuant to the
provisions of Rule XI.
122
IR, Rule XIII
S M I L E N O T E S ☺ | 34
o Prescription
▪ The complaint or petition for audit or examination of funds and
book of accounts shall prescribe within three (3) years from the
date of submission of the annual financial report to the
Department or from the date the same should have been
submitted as required by law, whichever comes earlier.
o Decision
▪ A decision granting the conduct of audit shall include the
appointment of the Audit Examiner and a directive upon him/her
to submit his/her report and recommendations within ten (10)
days from termination of audit. The decision granting the
conduct of audit is interlocutory and shall not be appealable. The
decision denying or dismissing the complaint or petition for audit
may be appealed within ten (10) days from receipt thereof.
o Pre-audit Conference
▪ Within twenty-four (24) hours from receipt of the decision
granting the conduct of audit, the Regional Director shall
summon the parties to a pre-audit conference conducted by the
Audit Examiner to determine and obtain the following:
(a) sources of funds covered by the audit;
(b) the banks and financial institutions where the labor
organization maintains its account;
(c) union books of accounts and financial statements;
(d) disbursement vouchers with supporting receipts,
invoices and other documents;
(e) income and revenue receipts;
(f) cash books;
(g) minutes of general membership meeting and board
meetings;
(h) other relevant matters and documents.
o Issuance of Subpoena
▪ The Regional Director may compel any party to appear or bring
the required financial documents in a conference or hearing
through the issuance of a subpoena ad testificandum or
subpoena duces tecum. He/She may also require the employer
concerned to issue certifications of union dues and other
assessments remitted to the union during the period of audit.
 LABOR RELATIONS S M I L E N O T E S ☺ | 35

o Conduct of Audit Examination o Decision After Audit

▪ The Med-Arbiter or the Bureau Director shall render a decision
Where books of accounts are Where no books of account are within twenty (20) days from receipt of the audit report. All
submitted, the Audit Examiner shall: submitted, the Audit Examiner shall: issues raised by the parties during the conduct of the audit shall
examine the transactions reflected examine the transactions reflected be resolved by the Med-Arbiter.
in the disbursement vouchers; in the disbursement vouchers; ▪ When warranted, the Med-Arbiter or Bureau Director shall order
determine the validity of the determine the validity of the the restitution of union funds by the responsible officer(s) in the
supporting documents attached to supporting documents attached to same decision.
the vouchers consistent with the the vouchers consistent with the o Appeal
union's constitution and by-laws, labor organization's constitution and
relevant resolutions of the union and by-laws, relevant board resolutions,
Med-Arbiter denying audit Appeal to Bureau
the Labor Code; and the Labor Code;
Med-Arbiter regarding results of audit Appeal to Bureau
trace recording and posting in the prepare working papers or
disbursement book; worksheet/s; Bureau regarding results of audit Appeal to Office of the Secretary
record observations or findings of all record and post all financial
financial transactions. transactions reflected in the cash o Period of Inquiry or Examination
vouchers in the working papers or ▪ No complaint for inquiry or examination of the financial and
worksheet/s; and book of accounts as well as other records of any legitimate labor
organization shall be entertained during the sixty (60) day
record observations or findings of all freedom period or within thirty (30) days immediately preceding
financial transactions the date of election of union officers. Any complaint or petition
. so filed shall be dismissed.
▪ The Audit Examiner shall conduct an inventory of all physical
assets acquired by the labor organization, if any, and on the basis Payment of attorney’s fees and special assessments
of his/her findings prepare his/her audited financial report or • Other than for mandatory activities under the Code, no special assessments,
statement reflecting the true and correct financial accounts and attorney's fees, negotiation fees or any other extraordinary fees may be checked off
balances of the labor organization with relevant annexes from any amount due to an employee without an individual written authorization
attached. duly signed by the employee. The authorization should specifically state the amount,
o Period of Audit purpose and beneficiary of the deduction.123
▪ The Audit Examiner shall have sixty (60) days from the date of • No attorney's fees, negotiation fees or similar charges of any kind arising from any
first pre-audit conference within which to complete the conduct collective bargaining agreement shall be imposed on any individual member of the
of audit, unless the volume of financial records warrant the contracting union. However, attorney's fees may be charged against union funds in
extension thereof. an amount to be agreed upon by the parties. Any contract, agreement or
o Audit Report arrangement of any sort to the contrary shall be null and void.124
▪ The Audit Examiner shall make a report of his/her findings to the
parties involved. 049 Gabriel v. Secretary of Labor, G.R. No. 115949, March 16, 2000
o Completion of Audit Facts
▪ A copy of the audit report shall be forwarded by the Audit • The Union decided to retain the service of an attorney as union counsel in connection
Examiner to the Med-Arbiter or the Bureau Director, as the case with the negotiations for a new CBA. As such, they approved a resolution which
may be, within ten (10) days from termination of the audit. provided an authorization for the bank to check-off attorney’s fees from the benefits
of the employees and to turn over said amount to the attorney.

123 124
LC, Art. 250 o LC, Art. 228 b
 LABOR RELATIONS S M I L E N O T E S ☺ | 36

Held • Inter/Intra-Union Disputes and Other Related Labor Relations Disputes127

• There are 3 requisites for the validity of the special assessment for union’s incidental
expenses, attorney’s fees and representation expenses. These are: Who may file
What
(1) authorization by a written resolution of the majority of all the members at complaint
the general membership meeting called for the purpose; Inter/Intra-Union Disputes
(2) secretary’s record of the minutes of the meeting; and (a) cancellation of registration of a labor organization filed by
(3) individual written authorization for check off duly signed by the employees its members or by another labor organization;
concerned. (b) conduct of election of union and workers' association
• Clearly, attorney’s fees may not be deducted or checked off from any amount due officers/nullification of election of union and workers'
association officers;
to an employee without his written consent. A written individual authorization duly
(c) audit/accounts examination of union or workers'
signed by the employee concerned is a condition sine qua non for such deduction.
association funds;
(d) deregistration of collective bargaining agreements;
5. Mandatory Activity (e) validity/invalidity of union affiliation or disaffiliation;
(f) validity/invalidity of acceptance/non-acceptance for union
050 Galvadores v. Trajano, 144 SCRA 138 (1986) membership;
Facts (g) validity/invalidity of impeachment/expulsion of union and Any legitimate
• Again the validity of check-offs for attorney’s fees without written authorization is at workers association officers and members; labor
issue. (h) validity/invalidity of voluntary recognition; organization or
Held (i) opposition to application for union and CBA registration; member(s)
(j) violations of or disagreements over any provision in a union thereof specially
• No check-offs from any amounts due employees may be effected without individual
or workers' association constitution and by-laws; concerned
written authorizations duly signed by the employees specifically stating the amount,
(k) disagreements over chartering or registration of labor
purpose and beneficiary of the deduction. organizations and collective bargaining agreements;
(l) violations of the rights and conditions of union or workers'
6. Union Information /Obligation association membership; SEIDAC
• It shall be the duty of any labor organization and its officers to inform its members (m) violations of the rights of legitimate labor organizations,
on the provisions of its constitution and by-laws, collective bargaining agreement, except interpretation of collective bargaining agreements;
the prevailing labor relations system and all their rights and obligations under (n) such other disputes or conflicts involving the rights to self-
existing labor laws.125 organization, union membership and collective bargaining:
(1) between and among legitimate labor organizations;
7. Enforcement and remedies – Intra-union disputes; jurisdiction; procedure and sanctions (2) between and among members of a union or
workers' association.
• Any violation of the rights and conditions of membership shall be a ground for
Other related Labor Relations Disputes
cancellation of union registration or expulsion of officers from office, whichever is
• Other related labor relations disputes shall include any
appropriate. At least thirty percent (30%) of the members of a union or any member
conflict between a labor union and the employer or any
or members specially concerned may report such violation to the Bureau. The
individual, entity or group that is not a labor organization or
Bureau shall have the power to hear and decide any reported violation to mete the Any party-in-
workers' association. This includes:
appropriate penalty. Criminal and civil liabilities arising from violations of above interest
(1) cancellation of registration of unions and workers
rights and conditions of membership shall continue to be under the jurisdiction of associations; and
ordinary courts.126 (2) a petition for interpleader.

125 127
LC, Art. 250 p IR, Rule XI
126
LC, Art. 250
 LABOR RELATIONS S M I L E N O T E S ☺ | 37

▪ Where the issue involves the entire membership of the labor (b) name, address and other personal circumstances of
organization, the complaint or petition shall be supported by at the respondent(s) or person(s) charged;
least thirty percent (30%) of its members. (c) nature of the complaint or petition;
▪ There can be no strike for intra-union disputes.128 (d) facts and circumstances surrounding the complaint or
petition;
o Effects of the Filing/Pendency of Inter/intra-union and Other Related Labor (e) cause(s) of action or specific violation(s) committed;
Relations Disputes (f) a statement that the administrative remedies provided
▪ The rights, relationships and obligations of the parties litigants for in the constitution and by-laws have been
against each other and other parties-in-interest prior to the exhausted or such remedies are not readily available
institution of the petition shall continue to remain during the or compliance with such administrative remedies does
pendency of the petition and until the date of finality of the not apply to complainant(s) or petitioner(s);
decision. (g) relief(s) prayed for;
▪ The filing or pendency of any inter/intra-union dispute and other (h) certificate of non-forum shopping; and
related labor relations dispute is not a prejudicial question to any (i) other relevant matters.
petition for certification election and shall not be a ground for o Raffle of the Case
the dismissal of a petition for certification election or suspension ▪ Upon the filing of the complaint or petition, the Regional
of proceedings for certification election. Director shall determine the Med-Arbiter or Hearing Officer
assigned to the case by means of a raffle.
o Where to File o Notice of Preliminary Conference
▪ The Med-Arbiter or Hearing Officer shall prepare the notice for
What Where Who preliminary conference which shall be scheduled within ten (10)
Petitions for cancellation Regional Office days from receipt of the complaint or petition.
of registration of labor that issued its o Conduct of Preliminary Conference
unions with independent certificate of ▪ The Med-Arbiter or Hearing Officer, as the case may be, shall
Resolved by the
registration, chartered registration or conduct a preliminary conference and hearing within ten (10)
Regional Director
locals and workers certificate of days from receipt of the complaint or petition. He/She shall exert
association and petitions creation of every effort to effect an amicable settlement of the dispute.
for deregistration of CBAs chartered local
Complaints or petitions
Where the parties agree to settle Where no amicable settlement is
involving federations,
Resolved by the amicably reached
national or industry Bureau
Bureau Their agreements shall be specified The Med-Arbiter or Hearing Officer,
unions, trade union
in the minutes of the conference as the case may be, shall proceed
centers
and a decision based on with the stipulation of facts,
Other inter/intra-union
compromise shall be issued by the limitation or definition of the issues,
disputes and related labor Regional Office Med-Arbiter
Med-Arbiter or the Regional clarificatory questioning and
relations disputes
Director, as the case may be, within submission of laws and
five (5) days from the date of the jurisprudence relied upon in support
o Formal Requirements of the Complaint or Petition
mandatory conference. of each other's claims and defenses
▪ The complaint or petition shall be in writing, verified under oath
and shall, among others, contain the following:
(a) name, address and other personal circumstances of
the complainant(s) or petitioner(s);

128
Filipino Pipe and Foundry Corporation vs. NLRC G.R. No. 115180.November 16, 1999.
 LABOR RELATIONS S M I L E N O T E S ☺ | 38

Conduct of Hearing Limited to 25 days from the date of preliminary conference Cancellation of Registration of Labor Organizations Due to Non-Compliance with the
Any affidavit submitted by a party to prove his/her claims or Reportorial Requirements129
defenses shall be re-affirmed by the presentation of the
Affirmation of Testimonial affiant before the Med-Arbiter. Any affidavit submitted Labor Organization failed to submit the financial reports required for five (5) consecutive
Evidence without the re-affirmation shall not be admitted in evidence, years despite notices for compliance sent
except when the adverse party admits the allegations or ↓
waives the examination of the affiant. Labor Relations Division or the Bureau may cause the institution of proceedings for
Filing of Pleadings Only within the 25 day period cancellation of its registration, upon its own initiative or upon complaint filed by any
Bureau and the Med-Arbiter or Regional Director has 20 days party-in-interest
Decision
from the date of the last hearing within which to decide ↓
Within 20 days from date of last hearing, the decision shall be Labor Relations Division of the Regional Office shall make a report of the labor
Release of Decision released to the parties personally on a date and time agreed organization's non-compliance and submit the same to the Bureau for verification
upon during the last hearing ↓
Med-Arbiter and 10 days to Bureau has 20 Bureau shall send a notice for compliance with notice to comply within ten (10) days from
Regional Director Bureau days to decide receipt thereof
Appeal
10 days to Office Office has 20 ↓
Bureau
of the Secretary days to decide Where no response is received within thirty (30) days from the release of the first notice,
Filed in the Regional Office or Bureau where the complaint or another notice for compliance shall be made
Where to File Appeal
petition originated ↓
Where no appeal is filed within the ten-day period after Where no response is again received by the Bureau within thirty (30) days from release of
Finality of Decision
receipt of the decision the second notice, the Bureau shall cause the publication of the notice of cancellation of
A reply to the appeal may be filed within 10 days from receipt registration two (2) newspapers of general circulation
Period to Reply
of the memorandum of appeal ↓
Motion for Only 1 motion for reconsideration of the decision of the Where no response is received by the Bureau within thirty (30) days from date of
Reconsideration Bureau or the Office of the Secretary shall be allowed publication it shall order the cancellation of registration of the labor organization and
Decision shall be automatically be stayed pending appeal cause its de-listing from the roster of legitimate labor organizations
Execution The decision shall be immediately executory upon issuance of
entry of final judgment
• The Bureau may conduct an investigation within the employer's premises and at the
Within 48 hours from notice of receipt of decision and finality
labor organization's last known address to verify the latter's existence.
of the decision, the entire records of the case shall be
• Where the Bureau has verified the dissolution of the labor organization, it shall order
remanded to the Bureau or Regional Office of origin for
Transmittal of Records the cancellation of registration of the labor organization and cause its de-listing from
implementation
The implementation of the decision shall not be stayed unless the roster of legitimate labor organizations.
restrained by the appropriate court • Conditions for Administrative Cancellation of Certificate of Registration
o No registration of labor organization shall be cancelled administratively by
the Bureau due to non-compliance with the reportorial requirements
unless:
(a) non-compliance is for a continuous period of five (5) years;
(b) the procedures laid down in this Rule were complied with; and
(c) the labor organization concerned has not responded to any of
the notices sent by the Bureau, or its notices were returned
unclaimed.

129
IR, Rule XV
 LABOR RELATIONS S M I L E N O T E S ☺ | 39

051 Diokno v. Cacdac, 526 SCRA 440 (2007); G. Union Chartering and Affiliation: Local and Parent Union Relations
Facts
• Who has jurisdiction to hear inter/intra-union disputes? 1. Affiliates and chartered locals, national unions and federations
Held • Affiliate130
• Under the Labor code, the Bureau of Labor Relations has the original and exclusive o Refers to an independent union affiliated with a federation, national union
jurisdiction on all inter-union and intra-union conflicts. or a chartered local which was subsequently granted independent
registration but did not disaffiliate from its federation, reported to the
052 Employees Union of Bayer Phils. v. Bayer Philippines Inc., G.R. No. 162943, December 6, Regional Office and the Bureau.
2010; • Chartered Local131
Facts o Refers to a labor organization in the private sector operating at the
• What is an intra-union dispute? enterprise level that acquired legal personality through the issuance of a
Held charter certificate by a duly registered federation or national union, and
• As defined, an Intra-Union Dispute refers to any conflict between and among union reported to the Regional Office.
members, and includes all disputes or grievances arising from any violation of or • Independent Union132
disagreement over any provision of the constitution and by-laws of a union, including o Refers to a labor organization operating at the enterprise level that
cases arising from chartering or affiliation of labor organizations or from any acquired legal personality through independent registration.
violation of the rights and conditions of union membership provided for in the Code. • National Union or Federation133
o Refers to a group of legitimate labor unions in a private establishment
053 Rodriguez v. Director, G.R. Nos. 76579-82, August 31, 1988; organized for collective bargaining or for dealing with employers
Facts concerning terms and conditions of employment for their member unions
or for participating in the formulation of social and employment policies,
• How is jurisdiction assumed by the Bureau of Labor Relations over an intra-union
standards and programs, registered with the Bureau.
dispute?
Held
2. Registration
• Jurisdiction could be assumed by the Labor Relations Director “at their own
• Registration of Labor Organizations134
initiative” or “upon request of either or both parties.”
o Where to File
054 Duyag v. Inciong, 98 SCRA 522 (1980)
Independent labor unions,
Facts Regional Office where the applicant
chartered locals, workers'
• Who has the power to removing erring officers of labor unions? associations
principally operates
Held Federations, national unions or
• The Bureau of Labor Relations has unquestionably the power to remove erring union Bureau or the Regional Offices, but
workers' associations operating in
shall be processed by the Bureau
officers under the Labor Code which provides that any violation of the rights and more than one region
conditions of union membership “shall be a ground for cancellation of union
registration or expulsion of officer from office, whichever is appropriate. At least
thirty percent (30%) of all the members of a union or any member or members
specially concerned may report such violation to the Bureau (of Labor Relations). The
Bureau shall have the power to hear and decide any reported violation to mete the
appropriate penalty”.

130 133
IR, Book V, Rule I, Sec. 1 a IR, Book V, Rule I, Sec. 1 kk
131 134
IR, Book V, Rule I, Sec. 1 j IR, Rule III
132
IR, Book V, Rule I, Sec. 1 w
 LABOR RELATIONS S M I L E N O T E S ☺ | 40

Tables reproduced here for easy reference.

Requirements for Registration Requirements for Registration

Independent Union135 Local Chapter136 Federation or
Worker’s Association138
The chapter shall acquire legal personality National Union137
only for purposes of filing a petition for a statement indicating the name of the the name of the applicant association, its
An independent union shall acquire legal
certification election from the date it was applicant labor union, its principal address, principal address, the name of its officers
personality and shall be entitled to the
issued a charter certificate. the name of its officers and their respective and their respective addresses;
rights and privileges granted by law to
The chapter shall be entitled to all other addresses;
legitimate labor organizations upon
rights and privileges of a legitimate labor the minutes of the organizational the minutes of the organizational
issuance of the certificate of registration.
organization only upon the submission of meeting(s) and the list of employees who meeting(s) and the list of members who
the other requirements. participated in the said meeting(s); participated therein;
the name of the applicant labor union, its the names of the chapter's officers, their the annual financial reports if the applicant the financial reports of the applicant
principal address, the name of its officers addresses, and the principal office of the union has been in existence for one or more association if it has been in existence for one
and their respective addresses, chapter; years, unless it has not collected any or more years, unless it has not collected
approximate number of employees in the amount from the members, in which case a any amount from the members, in which
bargaining unit where it seeks to operate, statement to this effect shall be included in case a statement to this effect shall be
with a statement that it is not reported as a the application; included in the application;
chartered local of any federation or national the applicant union's constitution and by-
union; laws, minutes of its adoption or ratification, the applicant's constitution and by-laws to
the minutes of the organizational and the list of the members who which must be attached the names of
meeting(s) and the list of employees who - participated in it. The list of ratifying ratifying members, the minutes of adoption
participated in the said meeting(s); members shall be dispensed with where the or ratification of the constitution and by-
the name of all its members comprising at constitution and by-laws was ratified or laws and the date when ratification was
least 20% of the employees in the - adopted during the organizational made, unless ratification was done in the
bargaining unit; meeting(s). In such a case, the factual organizational meeting(s), in which case
the annual financial reports if the applicant circumstances of the ratification shall be such fact shall be reflected in the minutes of
has been in existence for one or more years, recorded in the minutes of the the organizational meeting(s).
unless it has not collected any amount from organizational meeting(s);
-
the members, in which case a statement to the resolution of affiliation of at least ten
this effect shall be included in the (10) legitimate labor organizations, whether
application; independent unions or chartered locals,
the applicant's constitution and by-laws, each of which must be a duly certified or -
minutes of its adoption or ratification, and recognized bargaining agent in the
the list of the members who participated in The chapter's constitution and by-laws: establishment where it seeks to operate;
it. The list of ratifying members shall be Provided, That where the chapter's and
dispensed with where the constitution and constitution and by-laws are the same as the name and addresses of the companies
by-laws was ratified or adopted during the that of the federation or the national union, where the affiliates operate and the list of -
organizational meeting. In such a case, the this fact shall be indicated accordingly. all the members in each company involved.
factual circumstances of the ratification
shall be recorded in the minutes of the
organizational meeting(s).

135 138
IR, Book V, Rule III, Sec. 2 A IR, Book V, Rule III, Sec. 2 C
136
LC, Art. 241
137
IR, Book V, Rule III, Sec. 2 B
 LABOR RELATIONS
• Labor organizations operating within an identified industry may also apply for
registration as a federation or national union within the specified industry by
submitting to the Bureau the same set of documents. 139
• Application for registration of a workers' association operating in more than one
region shall be accompanied, in addition to the requirements, by a resolution of
membership of each member association, duly approved by its board of directors. 140
• Notice of Change of Name of Labor Organizations; Where to File
o The notice for change of name of a registered labor organization shall be
filed with the Bureau or the Regional Office where the concerned labor
organization's certificate of registration or certificate of creation of a
chartered local was issued.
• Requirements for Notice of Change of Name
o The notice for change of name of a labor organization shall be
accompanied by the following documents:
(a) proof of approval or ratification of change of name; and
(b) the amended constitution and by-laws.
• Certificate of Registration/Certificate of Creation of Chartered Local for Change of
Name
o The certificate of registration and the certificate of creation of a chartered
local issued to the labor organization for change of name shall bear the
same registration number as the original certificate issued in its favor and
shall indicate the following:
(a) the new name of the labor organization;
(b) its former name;
(c) its office or business address; and
(d) the date when the labor organization acquired legitimate
personality as stated in its original certificate of
registration/certificate of creation of chartered local.
• Report of Affiliation with Federations or National Unions; Where to File
o The report of affiliation of an independently registered labor union with a
federation or national union shall be filed with the Regional Office that
issued its certificate of registration.
• Requirements of Affiliation
o The report of affiliation of independently registered labor unions with a
federation or national union shall be accompanied by the following
documents:
(a) resolution of the labor union's board of directors approving the
affiliation;
139
IR, Book V, Rule III, Sec. 2 B
140
IR, Book V, Rule III, Sec. 2 D
S M I L E N O T E S ☺ | 41
(b) minutes of the general membership meeting approving the
affiliation;
(c) the total number of members comprising the labor union and
the names of members who approved the affiliation;
(d) the certificate of affiliation issued by the federation in favor of
the independently registered labor union; and
(e) written notice to the employer concerned if the affiliating union
is the incumbent bargaining agent.
• Notice of Merger/Consolidation of Labor Organizations; Where to File
o Notice of merger or consolidation of independent labor unions, chartered
locals and workers' associations shall be filed with and recorded by the
Regional Office that issued the certificate of registration/certificate of
creation of chartered local of either the merging or consolidating labor
organization. Notice of merger or consolidation of federations or national
unions shall be filed with and recorded by the Bureau.
• Requirements of Notice of Merger
o The notice of merger of labor organizations shall be accompanied by the
following documents:
(a) the minutes of merger convention or general membership
meeting(s) of all the merging labor organizations, with the list of
their respective members who approved the same; and
(b) the amended constitution and by-laws and minutes of its
ratification, unless ratification transpired in the merger
convention, which fact shall be indicated accordingly.
• Certificate of Registration
o The certificate of registration issued to merged labor organizations shall
bear the registration number of one of the merging labor organizations as
agreed upon by the parties to the merger.
o The certificate of registration shall indicate the following:
(a) the new name of the merged labor organization;
(b) the fact that it is a merger of two or more labor organizations;
(c) the name of the labor organizations that were merged;
(d) its office or business address; and
(e) the date when each of the merging labor organizations acquired
legitimate personality as stated in their respective original
certificate of registration.
 LABOR RELATIONS
• Requirements of Notice of Consolidation
o The notice of consolidation of labor organizations shall be accompanied by
the following documents:
(a) the minutes of consolidation convention of all the consolidating
labor organizations, with the list of their respective members
who approved the same; and
(b) the amended constitution and by-laws, minutes of its ratification
transpired in the consolidation convention or in the same
general membership meeting(s), which fact shall be indicated
accordingly.
• Certificate of Registration
o The certificate of registration issued to a consolidated labor organization
shall bear the registration number of one of the consolidating labor
organizations as agreed upon by the parties to the consolidation.
o The certificate of registration shall indicate the following
(a) the new name of the consolidated labor organization;
(b) the fact that it is a consolidation of two or more labor
organizations;
(c) the name of the labor organizations that were consolidated;
(d) its office or business address; and
(e) the date when each of the consolidating labor organizations
acquired legitimate personality as stated in their respective
original certificates of registration.
055 Progressive Development Corp. v. Secretary of Labor, 205 SCRA 802 (1992) SUPRA
Facts
• The company here contends that the local chapter has to follow the requirement of
submitting a list of the names of all its members comprising at least 20% of the
employees in the bargaining unit before it can be considered as a legitimate labor
organization.
Held
• The Court held that such requirement only applies to independent unions and not to
local chapters. Ordinarily, a labor organization acquires legitimacy only upon
registration with the BLR. But when an unregistered union becomes a branch, local
or chapter of a federation, some of the aforementioned requirements for
registration are no longer required. A local or chapter therefore becomes a
legitimate labor organization only upon submission of the following to the BLR:
(1) A charter certificate, within 30 days from its issuance by the labor
federation or national union, and
(2) The constitution and by-laws, a statement on the set of officers, and the
books of accounts all of which are certified under oath by the secretary or
treasurer, as the case may be, of such local or chapter, and attested to by
S M I L E N O T E S ☺ | 42
its president. Absent compliance with these mandatory requirements, the
local or chapter does not become a legitimate labor organization.
3. Purpose; nature of relations
056 Progressive Development Corp. v. Secretary of Labor, 205 SCRA 802 (1992) SUPRA
Facts
• The company here contends that the local chapter has to follow the requirement of
submitting a list of the names of all its members comprising at least 20% of the
employees in the bargaining unit before it can be considered as a legitimate labor
organization.
Held
• The Court held that such requirement only applies to independent unions and not to
local chapters. The certification and attestation requirements are preventive
measures against the commission of fraud. They likewise afford a measure of
protection to unsuspecting employees who may be lured into joining unscrupulous
or fly-by-night unions whose sole purpose is to control union funds or to use the
union for dubious ends. At this juncture, it is important to clarify the relationship
between the mother union and the local union. The mother union, acting for and in
behalf of its affiliate, had the status of an agent while the local union remained the
basic unit of the association. Thus, where as in this case the petition for certification
election was filed by the federation which is merely an agent, the petition is deemed
to be filed by the chapter, the principal, which must be a legitimate labor
organization. The chapter cannot merely rely on the legitimate status of the mother
union.
057 Filipino Pipe & Foundry Corp. v. NLRC, G.R. No. 115180, November 16, 1999
Facts
• The Court had the chance to reiterate the relationship between the local union and
mother federation, citing the case of Progressive Development Corp. v. Secretary of
Labor.
Held
• The Court ruled that the mother federation was a mere agent and the local
chapter/union was the principal, notwithstanding the failure of the local union to
comply with the procedural requirements that would make it a legitimate labor
organization.
 LABOR RELATIONS S M I L E N O T E S ☺ | 43

4. Affiliation of both supervisory and rank-and-file unions with one mother union When a local union should disaffiliate
• Ineligibility of Managerial Employees to Join any Labor Organization; Right of
Supervisory Employees141 059 Alliance of Nationalist and Genuine Labor Organization v. Samana, 258 SCRA 371 (1996)
Facts
Managerial Supervisory Rank and File • In view of the mother union’s dereliction of its duty to promote and advance the
Managerial employees are Supervisory employees The rank and file union welfare of the local chapter and the alleged cases of corruption involving the
not eligible to join, assist shall not be eligible for and the supervisors' union federation officers, the local union decided to disaffiliate from its mother union. The
or form any labor membership in the operating within the same mother union contended that such disaffiliation was improper, considering that a
organization. collective bargaining unit establishment may join CBA was still existing and the freedom period has not yet set in.
of the rank-and-file the same federation or
Held
employees but may join, national union.
• General Rule
assist or form separate
collective bargaining units o Generally, a labor union may disaffiliate from the mother union to form a
and/or legitimate labor local or independent union only during the 60-day freedom period
organizations of their own. immediately preceding the expiration of the CBA.
• Exception
• Effect of Inclusion as Members of Employees Outside the Bargaining Unit142 o However, even before the onset of the freedom period, disaffiliation may
o The inclusion as union members of employees outside the bargaining unit be carried out when there is a shift of allegiance on the part of the majority
shall not be a ground for the cancellation of the registration of the union. of the members of the union.
Said employees are automatically deemed removed from the list of • The mere act of affiliation does not divest the local union of its own personality,
membership of said union. neither does it give the mother federation the license to act independently of the
local union. It only gives rise to a contract of agency, where the former acts in
5. Local union disaffiliation: nature of right and legality representation of the latter.

058 National Union of Bank Employees v. Philnabank Empoyees Association, G.R. No. 174287,
August 12, 2013;
Facts
• The local union disaffiliated from its mother union. The mother union contends that
such disaffiliation was an act of disloyalty to the mother union and the general
membership.
Held
• The purpose of affiliation by a local union with a mother union or a federation is to
increase by collective action the bargaining power in respect of the terms and
conditions of labor. Yet the locals remained the basic units of association. Thus, a
local union which has affiliated itself with a federation is free to sever such affiliation
anytime and such disaffiliation cannot be considered disloyalty. In the absence of
specific provisions in the federation’s constitution prohibiting disaffiliation or the
declaration of autonomy of a local union, a local may dissociate with its parent union.

141 142
LC, Art. 255 LC, Art. 256
 LABOR RELATIONS S M I L E N O T E S ☺ | 44

PART IV - THE APPROPRIATE BARGAINING UNIT • Requisites of a valid election147

o At least a majority of all eligible voters in the unit must have cast their
votes. The labor union receiving the majority of the valid votes cast shall
A. Law and Definition
be certified as the exclusive bargaining agent of all the workers in the unit.
• Bargaining Unit143
o Refers to a group of employees sharing mutual interests within a given
060 Belyca Corporation v. Calleja, 168 SCRA 184 (1988)
employer unit, comprised of employees in the employer unit or any
Facts
specific occupational or geographical grouping within such employer unit.
• The dispute in this case revolves around the issue of what constitutes an appropriate
• Exclusive Bargaining Representation and Workers’ Participation in Policy and
bargaining unit.
Decision-Making144
Held
o The labor organization designated or selected by the majority of the
employees in an appropriate collective bargaining unit shall be the • A bargaining unit is a “group of employees of a given employer, comprised of all or
less than all of the entire body of employees, consistent with equity to the employer,
exclusive representative of the employees in such unit for the purpose of
indicate to be the best suited to serve the reciprocal rights and duties of the parties
collective bargaining. However, an individual employee or group of
under the collective bargaining provisions of the law.”
employees shall have the right at any time to present grievances to their
employer. • Among the factors considered in determining the proper constituency of a collective
o Workers shall have the right to participate in policy and decision-making bargaining unit are:
processes of the establishment where they are employed insofar as said (1) will of employees (Globe Doctrine);
processes will directly affect their rights, benefits and welfare. For this (2) affinity and unity of employee’s interest, such as substantial similarity of
purpose, workers and employers may form labor-management councils: work and duties or similarity of compensation and working conditions;
Provided, That the representatives of the workers in such labor- (3) prior collective bargaining history; and
management councils shall be elected by at least the majority of all (4) employment status, such as temporary, seasonal and probationary
employees in said establishment. employees.
• Representation • In any event, whether importance is focused on the employment status or the
mutuality of interest of the employees concerned “the basic test of an asserted
bargaining unit’s acceptability is whether or not it is fundamentally the combination
Organized Establishments145 Unorganized Establishments146
In organized establishments, when a In unorganized establishments with only which will best assure to all employees the exercise of their collective bargaining
verified petition questioning the majority one legitimate labor organization, the rights.
status of the incumbent bargaining agent employer may voluntarily recognize the
is filed within the sixty (60)-day period representation status of such a union.
before the expiration of the collective
bargaining agreement, the Med-Arbiter
shall automatically order an election by
secret ballot when the verified petition is
supported by the written consent of at
least twenty-five percent (25%) of all the
employees in the bargaining unit

143 146
IR, Book V, Rule 1, Sec. 1(d) IR, Rule VII
147
144
LC, Art. 267 LC, Art. 268
145
LC, Art. 268
 LABOR RELATIONS
B. Determination of Appropriate Bargaining Unit
1. Factors – Unit Determination
061 U.P. v. Ferrer-Calleja, 211 SCRA 451 (1992)
Facts
• The case involves professors and other employees performing academic functions
and whether they should be a separate bargaining unit from non-academic
employees.
Held
• The basic test of an asserted bargaining unit’s acceptability is whether or not it is
fundamentally the combination which will best assure to all employees the exercise
of their collective bargaining rights.
• The community or mutuality of interests test has provided the standard in
determining the proper constituency of a collective bargaining unit. A unit, to be
appropriate, must affect a grouping of employees who have substantial, mutual
interests in wages, hours, working conditions and other subjects of collective
bargaining
• In the present case, the formation of two separate bargaining units is the set up that
will best assure to all the employees the exercise of their collective bargaining rights.
062 San Miguel Corp. v. Laguesma, 236 SCRA 595 (1994)
Facts
• The company maintains that its collective bargaining history has shown that it always
had a separate bargaining unit for each sales office. It insists that its prior collective
bargaining history is the most persuasive criterion in determining the
appropriateness of the collective bargaining unit
Held
• The existence of a prior collective bargaining history is neither decisive nor
conclusive in the determination of what constitutes an appropriate bargaining unit.
• In-deed, the test of grouping is mutuality or commonality of interests. The
employees sought to be represented by the collective bargaining agent must have
substantial mutual interests in terms of employment and working conditions as
evinced by the type of work they perform.
• It is not the convenience of the employer that constitutes the determinative factor
in forming an appropriate bargaining unit. Equally, if not more important, is the
interest of the employees. In choosing and crafting an appropriate bargaining unit,
extreme care should be taken to prevent an employer from having any undue
advantage over the employees' bargaining representative.
S M I L E N O T E S ☺ | 45
063 San Miguel Foods, Inc. v. San Miguel Corp. Supervisors and Exempt Union, G.R. No. 146206
August 1, 2011.
Facts
• In the present case, the employees belonging to different factories all owned by the
company wanted to form a single bargaining unit. The issue now is whether or not
they should be allowed to do so.
Held
• The Court held in the affirmative. The basic test of an asserted bargaining unit’s
acceptability is whether or not it is fundamentally the combination which will best
assure to all employees the exercise of their collective bargaining rights.
2. Unit Severance and Globe Doctrine
064 Mechanical Depart Labor Union v. CIR, 24 SCRA 925 (1968)
Facts
• Again the bargaining unit’s constituency is at issue. The question is whether a new
unit should be established for a different shop under the same company.
Held
• Under the Globe doctrine (Globe Machine &' Stamping Co.), bargaining units may be
formed through separation of new units from existing ones whenever plebiscites had
shown the workers' desire to have their own representatives.
• Therefore, the Court held that the shops may each establish its own bargaining unit.
3. Size of Unit and Effect on Self-Organization
065 Filoil Refinery Corporation v. Filoil Supervisory and Confidential Employees Association, 46
SCRA 512 (1972) SUPRA
Facts
• The issue in this case is whether or not supervisory employees may form a union of
their own, to which the Court held in the affirmative.
Held
• Supervisors and confidential employees be entitled under the law to bargain
collectively with the top management with respect to their terms and conditions of
employment.
• Since the confidential employees are very few in number, such identity of interest
should allow their inclusion in the bargaining unit of supervisors-managers for
purposes of collective bargaining. This will fulfill the law’s objective of insuring to
them the full benefit of their right to self-organization and to collective bargaining,
which could hardly be accomplished if the respondent association’s membership
were to be broken up into five separate ineffective tiny units as urged by the
company.
 LABOR RELATIONS S M I L E N O T E S ☺ | 46

4. Effect of Prior Agreement
066 General Rubber and Footwear Corp. v. BLR, 155 SCRA 283 (1997)
Facts
• The company maintained that the exclusion of the respondents from the bargaining
union of the rank-and-file or from forming their own union was agreed upon by
corporation with the previous bargaining representatives. However, it was not
shown that the respondents were privy to this agreement.
Held
• Where employees were not privy to the agreement between petitioner and the
previous bargaining representatives as to their exclusion from the bargaining union
of the rank-and-file or from forming their own union, they can never bind
subsequent federations and unions because it is a curtailment of the right to self-
organization guaranteed by the labor laws.
o The Bureau shall have fifteen (15) working days to act on labor cases
before it, subject to extension by agreement of the parties.
• Med-Arbiter149
o Refers to an officer in the Regional Office or in the Bureau authorized to
hear and decide representation cases, inter/intra-union disputes and other
related labor relations disputes, except cancellation of union registration
cases.
• Where to File150
o A petition for certification election shall be filed with the Regional Office
which issued the petitioning union's certificate of registration/certificate
of creation of chartered local.
o The petition shall be heard and resolved by the Med-Arbiter.

C. Determining Agency

067 Filoil Refinery Corporation v. Filoil Supervisory and Confidential Employees Association, 46
SCRA 512 (1972) SUPRA
Facts
• The issue in this case is whether or not supervisory employees may form a union of
their own, to which the Court held in the affirmative.
Held
• The industrial court enjoys a wide discretion in determining the procedure necessary
to insure the fair and free choice of bargaining representations by employees.

• Bureau of Labor Relations148

Bureau of Labor Relations and the Labor Grievance procedure and/or voluntary
Relations Divisions arbitration
Has original and exclusive authority to act, Those arising from the implementation or
at their own initiative or upon request of interpretation of collective bargaining
either or both parties, on all inter-union agreements.
and intra-union conflicts, and all disputes,
grievances or problems arising from or
affecting labor-management relations in
all workplaces

148
LC, Art. 232
149
IR, Book V, Rule I, Sec. 1(ii)
150
IR, Rule VIII, Sec. 2
 LABOR RELATIONS
PART V - UNION REPRESENTATION:
ESTABLISHING UNION MAJORITY STATUS
A. Pre-Condition: Employer-Employee Relationship
068 Allied Free Workers Union v. Cia Maritima, 19 SCRA 258 (1967)
Facts
• The union wanted to establish a CBA with the company. The latter, however, refused
on the ground that the members of the union were employees of an independent
contractor. As such, there was no employer-employee relationship between them.
Held
• Under the law, the duty to bargain collectively arises only between the “employer”
and its “employees.” Where neither party is an employer nor an employee of the
other, no such duty would exist. Where there is no duty to bargain collectively, the
refusal to bargain violates no right.
B. Methods of Establishing Majority Status
1. Policy/Rationale
• It is the policy of the State to promote free trade unionism through expeditious
procedures governing the choice of an exclusive bargaining agent. The
determination of such exclusive bargaining agent is a non-litigious proceeding and,
as far as practicable, shall be free from technicalities of law and procedure, provided
only that in every case, the exclusive bargaining agent enjoys the majority support
of all the employees in the bargaining unit.151
• The State shall promote the principle of shared responsibility between workers and
employers and the preferential use of voluntary modes in settling disputes, including
conciliation, and shall enforce their mutual compliance therewith to foster industrial
peace.152
069 Reyes v. Trajano, 209 SCRA 484 (1992) SUPRA
Facts
• The INK employees voted that the employees in their bargaining unit should be
represented by "NO UNION." The respondents argue that the petitioners are
disqualified to vote because they "are not constituted into a duly organized labor
union"—"because members of the INK prohibit its followers, on religious grounds,
from joining or forming any labor organization"—and "hence, not one of the unions
which vied for certification as sole and exclusive bargaining representative.”
151
IR, Book V, Rule VI, Sec. 1
152
CONST., Art. XIII, Sec. 3
S M I L E N O T E S ☺ | 47
Held
• The purpose of a certification election is precisely the ascertainment of the wishes
of the majority of the employees in the appropriate bargaining unit: to be or not to
be represented by a labor organization, and in the affirmative case, by which
particular labor organization. If the results of the election should disclose that the
majority of the workers do not wish to be represented by any union, then their
wishes must be respected, and no union may properly be certified as the exclusive
representative of the workers in the bargaining unit in dealing with the employer
regarding wages, hours and other terms and conditions of employment.
070 National Mines and Allied Workers Union v. Secretary of Labor, G.R. No. 106446.
November 16, 1993.
Facts
• A contending union filed a petition for certification election during the freedom
period. The current certified bargaining agent filed a motion to dismiss on the ground
that 25% of the total number of company employees required by law to support a
petition for certification election was not met because some signatures were
falsified and disowned.
Held
• Granting that some signatures were falsified and disowned, this still leaves enough
signatures to meet the total number required by law to support a petition for
certification election. If indeed there are employees in the bargaining unit who
refused to be represented by the union, with all the more reason should a
certification election be held where the employees themselves can freely and
voluntarily express by secret ballot their choice of bargaining representative.
071 Samahang Manggagawa sa PERMEX v. Secretary of Labor, G.R. No. 107792. March 2, 1998
Facts
• Barely ten months after the employees had voted “no union” in a certification
election, a new union was formed and was voluntarily recognized by the company
as the exclusive bargaining agent. Such new union entered into a CBA with the
company but another union filed a petition for certification election.
Held
• It is not enough that a union has the support of the majority of the employees. It is
equally important that everyone in the bargaining unit be given the opportunity to
express himself. Certification election is the most effective and the most democratic
way of determining which labor organization can truly represent the working force
in the appropriate bargaining unit of a company.
 LABOR RELATIONS
2. Voluntary Recognition
• Voluntary Recognition153
o Refers to the process by which a legitimate labor union is recognized by
the employer as the exclusive bargaining representative or agent in a
bargaining unit.
• The determination of an exclusive bargaining agent shall be through voluntary
recognition in cases where there is only one legitimate labor organization operating
within the bargaining unit, or through certification, run-off or consent election.154
In unorganized establishments with only one legitimate labor
When155 organization, the employer may voluntarily recognize the
representation status of such a union
Within thirty (30) days from such recognition, the employer and
union shall submit a notice with the Regional Office which issued
Where to File156
the labor union's certificate of registration or creation of a
chartered local.
The notice of voluntary recognition shall be accompanied by the
original copy and two (2) duplicate copies of the following
documents:
(a) a joint statement attesting to the fact of voluntary
recognition;
(b) certificate of posting of the joint statement for 15
consecutive days in at least 2 conspicuous places in the
Requirements157
establishment where the union seeks to operate;
(c) the approximate number of employees in the bargaining
unit, accompanied by the names of majority of the
members in the bargaining unit who support the
voluntary recognition; and
(d) a statement that the labor union is the only legitimate
labor organization operating within the bargaining unit.
Where the notice of voluntary recognition is sufficient in form and
there is no other registered labor union operating within the
bargaining unit, the Regional Office, through the Labor Relations
Action on the Division shall, within 10 days from receipt of the notice, record the
Notice158 fact of voluntary recognition.
Where the notice of voluntary recognition is insufficient in form, the
Regional Office shall notify the labor union and advise it to comply.
Where the employer or the labor union failed to complete the
153
IR, Book V, Rule I, Sec. 1 (bbb)
154
Rule VI, Sec. 2
155
IR, Rule VII Sec. 1
156
Id.
157
IR, Rule VII Sec. 2
158
IR, Rule VII Sec. 3
S M I L E N O T E S ☺ | 48
requirements within 30 days from receipt of the advisory, the
Regional Office shall return the notice for voluntary recognition
without prejudice to its re-submission.
From the time of recording, the recognized labor union shall enjoy
Effect of
the rights, privileges and obligations of an existing bargaining agent
Recording159
of all the employees in the bargaining unit.
Effects
• Entry of voluntary recognition shall bar the filing of a petition for certification
election by any labor organization for a period of 1 year from the date of entry. Upon
expiration of this one-year period, any legitimate labor organization may file a
petition for certification election in the same bargaining unit represented by the
voluntarily recognized union, unless a collective bargaining agreement between the
employer and voluntarily recognized labor union was executed and registered.160
3. Elections
a. Certification election
• Organized Establishment161
o Refers to an enterprise where there exists a recognized or certified sole
and exclusive bargaining agent.
• In organized establishments162:
1. when a verified petition questioning the majority status of the incumbent
bargaining agent;
2. is filed by any legitimate labor organization;
3. before the Department of Labor and Employment within the sixty (60)-day
period before the expiration of the collective bargaining agreement.
• The Med-Arbiter shall automatically order an election by secret ballot when the
verified petition is supported by the written consent of at least 25% of all the
employees in the bargaining unit to ascertain the will of the employees in the
appropriate bargaining unit.
• Certification Election or Consent Election163
o Refers to the process of determining through secret ballot the sole and
exclusive representative of the employees in an appropriate bargaining
unit for purposes of collective bargaining or negotiation.
159
IR, Rule VII Sec. 4
160
IR, Book V, Rule VII, Sec. 4
161
IR, Book V, Rule I, Sec. 1 (ll)
162
LC, Art. 268
163
IR, Book V, Rule I, Sec. 1 (h)
 LABOR RELATIONS S M I L E N O T E S ☺ | 49

Certification Election Consent Election
Voluntarily agreed upon by the parties,
Ordered by the Department with or without the intervention by the
Department
b. Consent election
• Consent Election; Agreement 164
o In case the contending unions agree to a consent election, the Med-Arbiter
shall forward the records of the petition to the Regional Director for the
determination of the Election Officer by the contending unions through
raffle. The first pre-election conference shall be scheduled within 10 days
from the date of entry of agreement to conduct consent election.
• Number of Hearings; Pleadings165
o If the contending unions fail to agree to a consent election, the Med-
Arbiter may conduct as many hearings but in no case shall the conduct
thereof exceed 15 days from the date of the scheduled preliminary
conference/hearing, after which time the petition shall be considered
submitted for decision.
• Effects of Consent Election166
o Where a petition for certification election had been filed, and the parties
agree to hold a consent election, the results thereof shall constitute a bar
to the holding of a certification election for 1 year from the holding of such
consent election. Where an appeal has been filed, the running of the one-
year period shall be suspended until the decision has become final.
o Where no petition for certification election was filed but the parties
themselves agreed to hold a consent election with the intercession of the
Regional Office, the results thereof shall constitute a bar to another
petition for certification election.
c. Run-off election
• Run-off Election167
o Refers to an election between the labor unions receiving the two (2)
highest number of votes in a certification or consent election with three
(3) or more choices, where such a certified or consent results in none of
the three (3) or more choices receiving the majority of the valid votes cast;
provided that the total number of votes for all contending unions is at least
fifty percent (50%) of the number of votes cast.
1. When an election which provides for three (3) or more
choices results in none of the contending unions receiving a
When Proper168 majority of the valid votes cast;
2. and there are no objections or challenges which if sustained
can materially alter the results.
The Election Officer shall motu propio conduct a run-off election
within 10 days from the close of the election proceedings between
Motu Proprio169 the labor unions receiving the two highest number of votes;
provided, that the total number of votes for all contending unions
is at least 50% of the number of votes cast.
Notice of run-off elections shall be posted by the Election Officer at
Notice170
least five (5) days before the actual date of run-off election.
Qualification of The same voters list used in the certification election shall be used
Voters171 in the run-off election.
"No Union" shall not be a choice in the run-off election.
Choices172 The ballots in the run-off election shall provide as choices the unions
receiving the highest and second highest number of the votes cast
The labor union receiving the greater number of valid votes cast
Winner173
shall be certified as the winner.
4. Venue of Petition
• Where to File174
o A petition for certification election shall be filed with the Regional Office
which issued the petitioning union's certificate of registration/certificate
of creation of chartered local.
o The petition shall be heard and resolved by the Med-Arbiter.
072 Cruzvale Inc. v. Laguesma, 238 SCRA 389 (1994)
Facts
• The petition was sought to be dismissed on the ground that it was filed in a Regional
Office that did not have jurisdiction over the principal place of business of the
company.
Held
• The word "jurisdiction" as used in the Labor Code provision refers to the venue
where the petition for certification must be filed, not jurisdiction per se; it touches
more the convenience of the parties rather than the substance of the case.

164 170
IR, Rule VIII, Sec. 10 Id.
165 171
IR, Rule VIII, Sec. 11 IR, Rule X, Sec. 2
166 172
IR, Rule VIII, Sec. 23 IR, Rule X, Sec. 1 and 2
167 173
IR, Book V, Rule I, Sec. 1 (ss) IR, rule X, Sec. 2
168 174
IR, Rule x, Sec. 1 IR, Rule VIII, Sec. 2
169
Id.
 LABOR RELATIONS
C. Certification Election — Process175
Any legitimate labor organization may file a
Union
petition for certification election.
When requested to bargain collectively, an
employer may file a petition for certification
Who May File election with the Regional Office. If there is no
Employer existing registered collective bargaining
agreement in the bargaining unit, the Regional
Office shall, after hearing, order the conduct of a
certification election.
Regional Office which issued the petitioning union's certificate of
Where to File
registration/certificate of creation of chartered local.
Who resolves The petition shall be heard and resolved by the Med-Arbiter.
Form and Contents
A petition for certification election may be filed
General Rule
anytime.
1. Certification Year Bar Rule - when a
voluntary recognition has been entered or a
valid certification, consent or run-off
election has been conducted within 1 year
prior to the filing of the petition for
certification election;
2. Negotiation Bar Rule - when the duly
certified union has commenced and
sustained negotiations in good faith with the
When to File employer within the one year period
Exceptions referred to in the immediately preceding
paragraph;
3. Deadlock Bar Rule - when a bargaining
deadlock had been submitted to conciliation
or arbitration or had become the subject of
a valid notice of strike or lockout;
4. Contract Bar Rule - when a collective
Forced Intervenor
bargaining agreement has been registered.
Where such is registered, the petition may
be filed only within 60 days prior to its expiry
(Freedom Period).
Intervention
175
IR, Rule VIII
S M I L E N O T E S ☺ | 50
The petition shall be in writing, verified under oath by the president
of the labor organization. Where the petition is filed by a federation
or national union, it shall verified under oath by the president or its
duly authorized representative. The petition shall contain:
(a) the name of petitioner, its address, and affiliation if
appropriate, the date and number of its certificate of
registration/creation of chartered local;
(b) the name, address and nature of employer's business;
(c) the description of the bargaining unit;
(d) the approximate number of employees in the bargaining
unit;
(e) the names and addresses of other legitimate labor unions in
the bargaining unit;
(f) a statement indicating:
1. that the bargaining unit is unorganized or that there
of Petition
is no registered collective bargaining agreement
covering the employees in the bargaining unit;
2. if there exists a duly registered collective bargaining
agreement, that the petition is filed within the
freedom period; or
3. if another union had been previously recognized
voluntarily or certified in a valid certification, consent
or run-off election, that the petition is filed outside
the certification year bar rule and no appeal is
pending thereon.
(g) in an organized establishment, the signature of at least 25%
of all employees in the appropriate bargaining unit shall be
attached to the petition at the time of its filing; and
(h) other relevant facts.
Notice of
The Med-Arbiter shall prepare and serve a notice for preliminary
Preliminary
conference.
Conference
The incumbent bargaining agent shall automatically be one of the
choices in the certification election as forced intervenor.
Any legitimate labor union other than the
incumbent may file a motion for intervention
Organized
Motion for with the Med-Arbiter during the freedom period
of the collective bargaining agreement.
The motion shall be filed at any time prior to the
Unorganized
decision of the Med-Arbiter.
 LABOR RELATIONS
The Med-Arbiter shall conduct a preliminary conference within 10
days from receipt of the petition to determine the following:
Preliminary
(a) the bargaining unit to be represented;
Conference;
(b) contending labor unions;
Hearing
(c) possibility of a consent election;
(d) existence of any of the bars to certification election; and
(e) such other matters as may be relevant.
In case the contending unions agree to a consent election, the Med-
Arbiter shall enter the fact of the agreement in the minutes of the
Consent Election;
hearing. The Med- Arbiter shall then forward the records of the
Agreement
petition to the Regional Director for the determination of the
Election Officer through raffle.
If the contending unions fail to agree to a consent election, the Med-
Arbiter may conduct as many hearings but in no case shall the
Number of
conduct thereof exceed 15 days from the date of the scheduled
Hearings; Pleadings
preliminary conference/hearing, after which time the petition shall
be considered submitted for decision.
Failure to Appear The failure of any party to appear in the hearing(s) when notified or
Despite Notice to file its pleadings shall be deemed a waiver of its right to be heard.
Within 10 days from the date of the last hearing, the Med-Arbiter
shall issue a formal order granting the petition or a decision denying
Order/Decision
the same.
In organized establishments, however, no order or decision shall be
issued by the Med- Arbiter during the freedom period.
(a) the petitioner is not listed in the registry of legitimate labor
unions or that its legal personality has been revoked or
cancelled with finality;
(b) Contract Bar Rule; provided that the sixty-day period based
on the original collective bargaining agreement shall not be
Denial of the
affected by any amendment, extension or renewal;
Petition; Grounds
(c) Certification Year Bar Rule;
(d) Negotiation Bar Rule, or Deadlock Bar Rule;
(e) in case of an organized establishment, failure to submit the
25% support requirement for the filing of the petition for
certification election.
(a) All issues pertaining to the existence of employer-employee
relationship, eligibility or mixture in union membership shall
be resolved in the same order or decision;
Prohibited Grounds
(b) Any question pertaining to the validity of petitioning union's
for Denial or
certificate of registration or its legal personality, validity of
Suspension of the
registration and execution of collective bargaining
Petition
agreements shall be heard and resolved by the Regional
Director in an independent petition for cancellation of its
registration.
Release of The Med-Arbiter shall release the order or decision personally to the
Order/Decision parties on an agreed date and time.
S M I L E N O T E S ☺ | 51
When granted - shall not be subject to appeal.
Any issue may be raised by means of protest on
the conduct and results of the certification
Unorganized election.
When denied - may be appealed to the Office of
Appeal
the Secretary within ten (10) days from receipt
thereof.
The order granting or denying the petition, may
Organized be appealed to the Office of the Secretary within
ten (10) days from receipt thereof.
Where to File The memorandum of appeal shall be filed in the Regional Office
Appeal where the petition originated.
Finality of Where no appeal is filed within 10 days from receipt thereof, the
Order/Decision Med-Arbiter shall enter the finality of the order/decision.
A reply to the appeal may be filed by any party to the petition within
Period to Reply
10 days from receipt of the memorandum of appeal.
The Secretary shall have 15 days from receipt within which to decide
the appeal. The filing of the memorandum of appeal stays the
Decision of the holding of any certification election.
Secretary The decision of the Secretary shall become final and executory after
10 days from receipt thereof by the parties. No motion for
reconsideration of the decision shall be entertained.
Within 48 hours from notice of receipt of decision by the parties,
Transmittal of
the entire records shall be remanded to the Regional Office of origin
Records to the
for implementation. Implementation of the decision shall not be
Regional Office
stayed unless restrained by the appropriate court.
Where a petition for certification election had been filed, and the
parties agree to hold a consent election, the results thereof shall
constitute a bar to the holding of a certification election for one (1)
Effects of Consent
year from the holding of such consent election. Where an appeal
Election
has been filed from the results of the consent election, the running
of the one-year period shall be suspended until the decision on
appeal has become final and executory.
The representation case shall not be adversely affected by a
Effects of Early
collective bargaining agreement registered before or during the
Agreements
freedom period or during the pendency of the representation case.
 LABOR RELATIONS
Conduct of Certification Election176
Within 24 hours from receipt of the notice of entry of final judgment
granting the conduct of a certification election, the Regional
Raffle of the Case Director shall cause the raffle of the case to an Election Officer who
Posting of Notices
shall have control of the pre-election conference and election
proceedings.
Within 24 hours from receipt of the assignment, the Election Officer
shall cause the issuance of notice of pre-election conference which
shall be scheduled within 10 days from receipt of the assignment.
The pre-election conference shall set the following:
(a) date, time and place of the election, which shall not be later
than 45 days from the date of the first pre-election
conference, and shall be on a regular working day and within
Pre-election
the employer's premises, unless circumstances require
Conference
otherwise;
(b) list of eligible and challenged voters;
(c) number and location of polling places and the number of
ballots to be prepared;
(d) name of watchers or representatives and their alternates for
each of the parties during election;
(e) mechanics and guidelines of the election.
Failure of any party to appear during the pre-election conference
Waiver of Right to
despite notice shall be considered as a waiver to be present and to
be Heard
question or object to any of the agreements reached.
The Election Officer shall keep the minutes of matters raised and
Minutes of Pre- agreed upon during the pre-election conference. The pre-election
election Conference conference shall be completed within 30 days from the date of the
first hearing.
All employees who are members of the appropriate bargaining unit
sought to be represented at the time of the issuance of the order
granting the conduct of a certification election shall be eligible to
Qualification of vote.
Voters; Inclusion- An employee who has been dismissed from work but has contested
Exclusion the legality of the dismissal shall be considered a qualified voter.
Challenge of Votes
In case of disagreement over the voters' list or over the eligibility of
voters, all contested voters shall be allowed to vote. But their votes
shall be segregated and sealed in individual envelopes.
176
IR, Rule IX
S M I L E N O T E S ☺ | 52
The Election Officer shall cause the posting of notice of election at
least 10 days before the actual date of the election in 2 most
conspicuous places in the company premises. The notice shall
contain:
(a) the date and time of the election;
(b) names of all contending unions;
(c) the description of the bargaining unit and the list of eligible
and challenged voters.
The posting of the notice of election cannot be waived by the
contending unions or the employer.
Secrecy and To ensure secrecy of the ballot, the Election Officer, together with
Sanctity of the the authorized representatives, shall inspect the polling place, the
Ballot ballot boxes and the polling booths.
The Election Officer shall prepare the ballots in English and Filipino
or the local dialect, corresponding to the number of voters and a
Preparation of
reasonable number of extra ballots. All ballots shall be signed at the
Ballots
back by the Election Officer and authorized representative of each
of the contending unions and employer.
The voter must put a cross (x) or check () mark in the square
opposite the name of the union of his choice or "No Union" if he/she
does not want to be represented by any union.
Marking of Votes If a ballot is torn, defaced or left unfilled in such a manner as to
create doubt or confusion or to identify the voter, it shall be
considered spoiled. If the voter inadvertently spoils a ballot, the
Election Officer shall destroy it and give him/her another ballot.
An authorized representative of any of the contending unions and
employer may challenge a vote before it is deposited in the ballot
box only on any of the following grounds:
Challenging of
(a) that there is no employer-employee relationship between
Votes
the voter and the company;
(b) that the voter is not a member of the appropriate bargaining
unit which petitioner seeks to represent.
When a vote is properly challenged, the Election Officer shall place
the ballot in an envelope which shall be sealed. The envelopes shall
Procedure in the
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.
The Election Officer shall rule on any question relating to and raised
On-the-Spot
during the conduct of the election except on any of the grounds for
Questions
challenge specified in the immediately preceding section.
Any party-in-interest may file a protest based on the conduct or
Protest; When
mechanics of the election. Protests not so raised are deemed
Perfected
waived.
 LABOR RELATIONS S M I L E N O T E S ☺ | 53

The protesting party must formalize its protest with the Med-
Arbiter, with specific grounds, arguments and evidence, within 5
days after the close of the election proceedings. If not, the protest
shall be deemed dropped.
The votes shall be counted and tabulated by the Election Officer in
Canvassing of Votes
the presence of the representatives of the contending unions.
The election precincts shall open and close on the date and time
agreed upon during the pre-election conference. The opening and
Conduct of Election
canvass shall proceed immediately after the precincts have closed.
and Canvass of
Failure of any party or the employer or his/her/their representative
Votes
to appear during the election proceedings shall be considered a
waiver to be present and to question the conduct thereof.
The union which obtained a majority of the valid votes cast shall be
Certification of certified as the sole and exclusive bargaining agent of all the
Collective employees in the appropriate bargaining unit within 5 days from the
Bargaining Agent day of the election, provided no protest is recorded in the minutes
of the election.
Where the number of votes cast in a certification or consent
election is less than the majority of the number of eligible voters
Failure of Election
and there are no material challenged votes, the Election Officer
shall declare a failure of election.
A failure of election shall not bar the filing of a motion for the
Effect of Failure of
immediate holding of another certification or consent election
Election
within 6 months from date of declaration of failure of election.
Within 24 hours from receipt of the motion, the Election Officer
shall immediately schedule the conduct of another certification or
Action on the
consent election within 15 days from receipt of the motion and
Motion
cause the posting of the notice of certification election. The same
guidelines and list of voters shall be used in the election.
Within 24 hours from final canvass of votes, there being a valid
election, the Election Officer shall transmit the records of the case
to the Med-Arbiter who shall issue an order proclaiming the results
and certifying the union which obtained a majority of the valid
votes, under any of the following conditions:
Proclamation and
(a) no protest was filed or, even if one was filed, the same was
Certification of the
not perfected;
Result of the
(b) no challenge or eligibility issue was raised or, even if one was
Election
raised, the resolution of the same will not materially change
the results of the elections.
The winning union shall have the rights, privileges and obligations
of a duly certified collective bargaining agent from the time the
certification is issued.
1. The Union as Initiating Party
• A legitimate labor organization shall have the right to be certified as the exclusive
representative of all the employees in an appropriate bargaining unit for purposes
of collective bargaining.177
a. Organized Establishment
• Organized Establishment178
o Refers to an enterprise where there exists a recognized or certified sole
and exclusive bargaining agent.
• In organized establishments179:
1. when a verified petition questioning the majority status of the
incumbent bargaining agent;
2. is filed by any legitimate labor organization;
3. before the Department of Labor and Employment within the
sixty (60)-day period before the expiration of the collective
bargaining agreement.
o The Med-Arbiter shall automatically order an election by secret ballot
when the verified petition is supported by the written consent of at least
25% of all the employees in the bargaining unit to ascertain the will of the
employees in the appropriate bargaining unit.
o In cases where the petition was filed by a national union or federation, it
shall not be required to disclose the names of the local chapter's officers
and members.
o At the expiration of the freedom period, the employer shall continue to
recognize the majority status of the incumbent bargaining agent where no
petition for certification election is filed.
i) Petition Before Freedom Period
• Duty to Bargain Collectively When There Exists a Collective Bargaining Agreement 180
o When there is a collective bargaining agreement, the duty to bargain
collectively shall also mean that neither party shall terminate nor modify
such agreement during its lifetime. However, either party can serve a
written notice to terminate or modify the agreement at least 60 days prior
to its expiration date. It shall be the duty of both parties to keep the status
quo and to continue in full force and effect the terms and conditions of the
existing agreement during the 60-day period and/or until a new agreement
is reached by the parties.

177 180
LC, Art. 251 (b) LC, Art. 264
178
IR, Book V, Rule I, Sec. 1 (ll)
179
LC, Art. 268
 LABOR RELATIONS S M I L E N O T E S ☺ | 54

• Freedom Period181 iii) Filing Party

o When a collective bargaining agreement between the employer and a duly
recognized or certified bargaining agent has been registered, the petition
may be filed only within sixty (60) days prior to its expiry.
• Order/Decision on the Petition182
o Within 10 days from the date of the last hearing, the Med-Arbiter shall
issue a formal order granting the petition or a decision denying the same.
In organized establishments, however, no order or decision shall be issued
by the Med- Arbiter during the freedom period.
073 Atlantic Gulf and Pacific Co. Manila Inc. v. Laguesma, 212 SCRA 281 (1992)
Facts
• Just after the incumbent union entered into a CBA with the company, another union
filed a petition for certification election.
Held
• If a CBA has been duly registered, a petition for certification election or a motion for
intervention can only be entertained within sixty (60) days prior to the expiry date
of such agreement.
• Consequently, the existence of a duly registered CBA between the incumbent union
and the company bars any other labor organization from filing a petition for
certification election except within the freedom period.
ii) Petition Beyond Freedom Period
074 National Congress of Union in Sugar Industry v. Ferrer-Calleja, 205 SCRA 478 (1992)
Facts
• A petition for certification election was filed 1 year after the CBA expired.
Held
• The petition for certification election must be filed within the last sixty (60) days of
the CBA and any petition filed outside the 60-day freedom period shall be dismissed
outright.
• The purpose, obviously, is to ensure stability in the relationships of the workers and
the management by preventing frequent modifications of any collective bargaining
agreement earlier entered into by them in good faith and for the stipulated original
period.
Any legitimate labor organization may file a
Union
petition for certification election.
When requested to bargain collectively, an
employer may file a petition for certification
Who May File183 election with the Regional Office. If there is no
Employer existing registered collective bargaining
agreement in the bargaining unit, the Regional
Office shall, after hearing, order the conduct of a
certification election.
Misrepresentation by Union Officers
075 DHL Phil. Corp. United RAF Association – FFW v. Buklod ng Manggagawa, G.R. No. 152094,
July 22, 2004
Facts
• A petition for certification election was held. However, it was sought to be annulled
on the ground that the incumbent officers of the union misrepresented the union as
being an independent one when in fact it was affiliated.
Held
• The making of false statements or misrepresentations that interfere with the free
choice of the employees is a valid ground for protest. A certification election may be
set aside for misstatements made during the campaign, where
1. a material fact has been misrepresented in the campaign;
2. an opportunity for reply has been lacking; and
3. the misrepresentation has had an impact on the free choice of the
employees participating in the election.
• A misrepresentation is likely to have an impact on their free choice, if it comes from
a party who has special knowledge or is in an authoritative position to know the true
facts. This principle holds true, especially when the employees are unable to evaluate
the truth or the falsity of the assertions.

181 183
IR, Book V, Rule VIII, Sec. 3 (d) IR, Book V, Rule VIII, Sec. 1
182
IR, Rule VIII, Sec. 13, par. 1
 LABOR RELATIONS
iv) Form of Petition
The petition shall be in writing, verified under oath by the president
of the labor organization. Where the petition is filed by a federation
or national union, it shall verified under oath by the president or its
duly authorized representative. The petition shall contain:
(a) the name of petitioner, its address, and affiliation if
appropriate, the date and number of its certificate of
registration/creation of chartered local;
(b) the name, address and nature of employer's business;
(c) the description of the bargaining unit;
(d) the approximate number of employees in the bargaining
unit;
(e) the names and addresses of other legitimate labor unions in
the bargaining unit;
(f) a statement indicating:
Form and Contents
1. that the bargaining unit is unorganized or that there is
of Petition184
no registered collective bargaining agreement
covering the employees in the bargaining unit;
2. if there exists a duly registered collective bargaining
agreement, that the petition is filed within the
freedom period; or
3. if another union had been previously recognized
voluntarily or certified in a valid certification, consent
or run-off election, that the petition is filed outside the
certification year bar rule and no appeal is pending
thereon.
(g) in an organized establishment, the signature of at least 25%
of all employees in the appropriate bargaining unit shall be
attached to the petition at the time of its filing; and
(h) other relevant facts.
070 National Mines and Allied Workers Union v. Secretary of Labor, G.R. No. 106446.
November 16, 1993. SUPRA
Facts
• A contending union filed a petition for certification election during the freedom
period. The current certified bargaining agent filed a motion to dismiss on the ground
that the petition was not verified.
Held
• Verification of a pleading is a formal, not jurisdictional requisite. Generally, technical
and rigid rules of procedure are not binding in labor cases; and this rule is specifically
applied in certification election proceedings, which are non-litigious but merely
184
IR, Book V, Rule VIII, Sec. 4
185
LC, Art. 268
S M I L E N O T E S ☺ | 55
investigative and non-adversarial in character. Nevertheless, whatever formal
defects existed in the first petition were cured and corrected in the second petition
for certification election.
v) Substantial Support
• Representation Issue in Organized Establishments185
o In organized establishments, where a verified petition for certification
election is filed by any legitimate labor organization within the freedom
period, the Med-Arbiter shall automatically order an election by secret
ballot when the petition is supported by the written consent of at least
25% of all the employees in the bargaining unit to ascertain the will of the
employees in the appropriate bargaining unit.
• The Med-Arbiter may dismiss the petition when in the case of an organized
establishment, there is failure to submit the 25% support requirement for the filing
of the petition for certification election. 186
077 Port Workers Union etc. v. DOLE, 207 SCRA 329 (1992)
Facts
• The main issue in the present case is whether simultaneous submission of the 25%
consent signatures upon the filing of the petition for certification election is a
condition sine qua non before the issuance of an order for the holding of such
election.
Held
• The Court held in the negative. The administrative rule requiring the simultaneous
submission of the 25% consent signatures upon the filing of petition for certification
election should not be strictly applied to frustrate the determination of the
legitimate representative of the workers. As such, the regulation should at best be
given only a directory effect. Accordingly, the mere filing of a petition for certification
election within the freedom period is sufficient basis for the issuance of an order for
the holding of a certification election, subject to the submission of the consent
signatures within a reasonable period from such filing.
186
IR, Rule XI, Sec. 11, ll(e)
 LABOR RELATIONS S M I L E N O T E S ☺ | 56

078 Oriental Tin Can Labor Union v. Secretary of Labor, 294 SCRA 640 (1998)
Facts
• The petition for certification election was sought to be dismissed on the ground that
it was not endorsed by at least 25% of the bargaining unit since some of the
employees who initially signed the petition had allegedly withdrawn the same.
Held
• Once the percentage requirement has been reached, the employees’ withdrawal
from union membership taking place after the filing of the petition for certification
election will not affect the petition. On the contrary, the presumption arises that the
withdrawal was not free but was procured through duress, coercion or for a valuable
consideration.
• The support requirement is a mere technicality which should be employed in
determining the true will of the workers instead of frustrating the same.
vi) Forced Intervention/ Motion for Intervention
Forced The incumbent bargaining agent shall automatically be one of the
Intervenor187 choices in the certification election as forced intervenor.
Any legitimate labor union other than the
incumbent may file a motion for intervention
Organized
Motion for with the Med-Arbiter during the freedom period
Intervention188 of the collective bargaining agreement.
The motion shall be filed at any time prior to the
Unorganized
decision of the Med-Arbiter.
079 Phil. Assn. of Free Labor Union v. Calleja, 169 SCRA 491 (1989)
Facts
• A union wanted to intervene in a petition for certification election. However, its
motion for intervention was not support by 20% consent signatures of the bargaining
unit.
Held
• Under the law, the requisite written consent of at least 20% of the workers in the
bargaining unit applies to petitions for certification election only, and not to motions
for intervention.
b. Unorganized Establishment
• In unorganized establishments with only one legitimate labor organization, the
employer may voluntarily recognize the representation status of such a union. 189
• Requisites:
o There is only one union.
o It has majority representation.
080 Sugbuanon Rural Bank v. Laguesma, G.R. No. 116194, Feb. 2, 2000
Facts
• A union in an unorganized establishment was recently granted a certificate of
registration. As such, it filed a petition for certification election. The company
motioned to dismiss on the ground that it had appealed the issuance of the
certificate of registration.
Held
• Article 257 of the Labor Code mandates that a certification election shall
automatically be conducted by the Med-Arbiter upon the filing of a petition by a
legitimate labor organization. Nothing is said therein that prohibits such automatic
conduct of the certification election if the management appeals on the issue of the
validity of the union’s registration.
2. The Employer as Initiating Party/ Bystander Rule
• When an Employer May File Petition 190
o When requested to bargain collectively, an employer may petition the
Bureau for an election. If there is no existing certified collective bargaining
agreement in the unit, the Bureau shall, after hearing, order a certification
election.
• Employer as Bystander191
o Whether the petition for certification election is filed by an employer or a
legitimate labor organization, the employer shall not be considered a party
thereto with a concomitant right to oppose a petition for certification
election. The employer's participation shall be limited to:
1. being notified or informed of petitions of such nature; and
2. submitting the list of employees during the pre-election
conference should the Med-Arbiter act favorably on the petition.

187 190
IR, Book V, Rule VIII, Sec. 7 LC, Art. 270
188 191
IR, Book V, Rule VIII, Sec. 8 LC, Art. 271
189
IR, Rule VII
 LABOR RELATIONS
081 Hercules Industries, Inc. v. Secretary of Labor, 214 SCRA 129 (1992)
Facts
• After a certification election was conducted, the company appealed the results to
the DOLE.
Held
• The employer is not a party to a certification election which is the sole or exclusive
concern of the workers. In the choice of their collective bargaining representative,
the employer is definitely an intruder. The only instance when the employer may be
involved in that process is when it is obliged to file a petition for certification election
on its workers’ request to bargain collectively pursuant to Article 258 of the Labor
Code. After the order for a certification election issues, the employer’s involvement
ceases, and it becomes a neutral bystander.
3. Responsible Agency
Regional Office which issued the petitioning union's certificate of
Where to File192
registration/certificate of creation of chartered local.
Who resolves193 The petition shall be heard and resolved by the Med-Arbiter.
4. Requisite for Validity of Election/ Failure of Election
• Eligible Voter194
o Refers to a voter belonging to the appropriate bargaining unit that is the
subject of a petition for certification election.
• To have a valid election, at least a majority of all eligible voters in the unit must have
cast their votes. The labor union receiving the majority of the valid votes cast shall
be certified as the exclusive bargaining agent of all the workers in the unit. 195
Where the number of votes cast in a certification or consent
Failure of election is less than the majority of the number of eligible voters
Election196 and there are no material challenged votes, the Election Officer
shall declare a failure of election.
A failure of election shall not bar the filing of a motion for the
Effect of Failure of
immediate holding of another certification or consent election
Election197
within 6 months from date of declaration of failure of election.
192
IR, Book V, Rule VIII, Sec. 2
193
Id.
194
IR, Book V, Rule I, Sec. 1 (q)
195
LC, Art. 268
S M I L E N O T E S ☺ | 57
Within 24 hours from receipt of the motion, the Election Officer
shall immediately schedule the conduct of another certification or
Action on the
consent election within 15 days from receipt of the motion and
Motion198
cause the posting of the notice of certification election. The same
guidelines and list of voters shall be used in the election.
082 Benguet Electric Coop. Inc. v. Calleja, 180 SCRA 740 (1989)
Facts
• A cooperative is by its nature different from an ordinary business concern being run
either by persons, partnerships, or corporations. Its owners and/or members are the
ones who run and operate the business while the others are its employees. The
question therefore is whether a member of the cooperative, who is at the same time
an employee, may invoke the right to collective bargaining.
Held
• The right to collective bargaining is not available to an employee of a cooperative
who at the same time is a member and co-owner thereof. Employees who are
neither members nor co-owners of the cooperative are entitled to exercise the rights
to self-organization, collective bargaining and negotiation.
5. Nature of Proceeding
083 Port Workers Union etc. v. DOLE, 207 SCRA 329 (1992) SUPRA
Facts
• The main issue in the present case is whether simultaneous submission of the 25%
consent signatures upon the filing of the petition for certification election is a
condition sine qua non before the issuance of an order for the holding of such
election.
Held
• The Court held in the negative. A certification election is not a litigation but a mere
investigation of a non-adversary character where the rules of procedure are not
strictly applied. Technical rules and objections should not hamper the correct
ascertainment of the labor union that has the support or confidence of the majority
of the workers and is thus entitled to represent them in their dealings with
management.
196
IR, Rule IX, Sec. 17
197
IR, Rule IX, Sec. 18
198
IR, Rule IX, Sec. 19
 LABOR RELATIONS S M I L E N O T E S ☺ | 58

6. Certification Election – Process and Procedure199 c. Voters’ List

a. Effect of Private Agreement
084 PLUM Federation of Industrial and Agrarian Workers v. Noriel, 119 SCRA 299 (1982)
Facts
• A local chapter filed a petition for certification election. This was opposed by its
mother federation on the ground that under its code of ethics, the petition must be
supported by 30% consent signatures of all employees in the bargaining unit.
Held
• Dismissal of appeal from denial of request for certification election based on the
decision of a private labor organization constitutes an impairment of the freedom of
workers to choose their representative union. As such, doubt as to the required 30%
requirement being met warrants holding of certification election.
b. Posting Notice
• Election Officer200
o Refers to an officer of the Bureau or Labor Relations Division in the
Regional Office authorized to conduct certification elections, election of
union officers and other forms of elections and referenda.
The Election Officer shall cause the posting of notice of election at
least 10 days before the actual date of the election in 2 most
conspicuous places in the company premises. The notice shall
contain:
Posting of (a) the date and time of the election;
Notices201 (b) names of all contending unions;
(c) the description of the bargaining unit and the list of eligible
and challenged voters.
The posting of the notice of election cannot be waived by the
contending unions or the employer.
• Eligible Voter202
o Refers to a voter belonging to the appropriate bargaining unit that is the
subject of a petition for certification election.
All employees who are members of the appropriate bargaining unit
sought to be represented at the time of the issuance of the order
granting the certification election shall be eligible to vote.
Qualification of
An employee who has been dismissed from work but has contested
Voters; Inclusion-
the legality of the dismissal shall be considered a qualified voter.
Exclusion203
In case of disagreement over the voters' list or over the eligibility of
voters, all contested voters shall be allowed to vote. But their votes
shall be segregated and sealed in individual envelopes.
d. Dismissed employees
• An employee who has been dismissed from work but has contested the legality of
the dismissal shall be considered a qualified voter, unless his/her dismissal was
declared valid in a final judgment at the time of the conduct of the certification
election.204
086 Yokohama Tire Phil., Inc. v. Yokohama Employees Union, 539 SCRA 556 (2007)
Facts
• Some 65 dismissed employees questioned their dismissal and voted in the
certification election held. Their votes were then protested by the company.
Held
• Without a final judgment declaring the legality of dismissal, dismissed employees are
eligible to participate and vote in certification elections.

085 Jisscor Independent Union v. Torres, 221 SCRA 699 (1993)

Facts
• The certification election conducted was questioned on the ground that the posting
of notices requirement was not complied with.
Held
• Protests, not appearing in the minutes of a certification election, are deemed
waived.

199 202
IR, Rule VIII IR, Rule I, Sec. 1 (q)
200
IR, Book V, Rule I, Sec. 1 (o) 203
IR, Book V, Rule IX, Sec. 5
201
IR, Rule IX, Sec. 6 204
Id.
 LABOR RELATIONS
e. Voting Day/Venue
Within 24 hours from receipt of the assignment, the Election Officer
shall cause the issuance of notice of pre-election conference which
shall be scheduled within 10 days from receipt of the assignment.
The pre-election conference shall set the following:
(a) date, time and place of the election, which shall not be later
than 45 days from the date of the first pre-election
conference, and shall be on a regular working day and within
Pre-election
the employer's premises, unless circumstances require
Conference205
otherwise;
(b) list of eligible and challenged voters;
(c) number and location of polling places and the number of
ballots to be prepared;
(d) name of watchers or representatives and their alternates for
each of the parties during election;
(e) mechanics and guidelines of the election.
087 Asian Design and Manufacturing Corp. v. Calleja, 174 SCRA 477 (1989)
Facts
• On the day of the certification election, a strike was held in the premises of the
company. As such, the company contested the elections on the ground that such day
was no longer a “regular business day” as required by law.
Held
• The alleged strike and/or picketing which coincided with the actual conduct of
certification election did not necessarily make said date an irregular business day.
f. Conduct of Election
Within 24 hours from receipt of the notice of entry of final judgment
granting the conduct of a certification election, the Regional
Raffle of the Case206 Director shall cause the raffle of the case to an Election Officer who
shall have control of the pre-election conference and election
proceedings.
205
IR, Book V, Rule IX, Sec. 2
206
IR, Book V, Rule IX, Sec. 1
207
IR, Book V, Rule IX, Sec. 15
208
IR, Rule I, Sec. 1 (p)
S M I L E N O T E S ☺ | 59
The election precincts shall open and close on the date and time
agreed upon during the pre-election conference. The opening and
Conduct of Election
canvass shall proceed immediately after the precincts have closed.
and Canvass of
Failure of any party or the employer or his/her/their representative
Votes207
to appear during the election proceedings shall be considered a
waiver to be present and to question the conduct thereof.
088 Hercules Industries, Inc. v. Sec. DOLE, 214 SCRA 129 (1992) SUPRA
Facts
• After a certification election was conducted, the company appealed the results to
the DOLE.
Held
• Protests not so raised are deemed waived. Such protests shall be contained in the
minutes of the proceedings. The election minutes are the only relevant and
competent evidence on the conduct of the election. However, the minutes of the
certification election show that the company never protested the conduct of the
certification election.
g. Protest’ Period
• Election Proceedings 208
o Refer to the period during a certification election, consent or run-off
election and election of union officers, starting from the opening to the
closing of the polls, including the counting, tabulation and consolidation of
votes, but excluding the period for the final determination of the
challenged votes and the canvass thereof.
The Election Officer shall rule on any question relating to and raised
On-the-Spot
during the conduct of the election except on any of the grounds for
Questions209
challenge specified in the immediately preceding section.
Any party-in-interest may file a protest based on the conduct or
mechanics of the election. Protests not so raised are deemed
waived.
Protest; When
The protesting party must formalize its protest with the Med-
Perfected 210
Arbiter, with specific grounds, arguments and evidence, within 5
days after the close of the election proceedings. If not, the protest
shall be deemed dropped.
209
IR, Book V, Rule IX, Sec. 12
210
IR, Book V, Rule IX, Sec. 13
 LABOR RELATIONS S M I L E N O T E S ☺ | 60

089 Samahan ng Manggagawa v. Laguesma, 267 SCRA 303 (1997) i) Nullification of Election results
Facts
• The company failed to submit the company payroll. As such, an SSS list was used as Period to Reply215
A reply to the appeal may be filed by any party to the petition within
basis for determining the total number of eligible voters. The union appealed the 10 days from receipt of the memorandum of appeal.
election conducted on the basis of such list.
Held The Secretary shall have 15 days from receipt within which to decide
• Grounds of protests not raised before the close of the proceedings and duly the appeal. The filing of the memorandum of appeal stays the
formalized within five (5) days after the close of the election proceedings are Decision of the holding of any certification election.
Secretary216 The decision of the Secretary shall become final and executory after
deemed waived. The union here did not formalize its protest.
10 days from receipt thereof by the parties. No motion for
reconsideration of the decision shall be entertained.
h. Appeal; Period
• Appeal from Certification Election Orders211
090 United Employees Union of Gelmart Industries v. Noriel, 67 SCRA 267 (1975)
o Any party to an election may appeal the order or results of the election as
Facts
determined by the Med-Arbiter directly to the Secretary of Labor and
• A contending union did not lodge any protest concerning an alleged misprinting or
Employment on the ground that the rules and regulations or parts thereof
omission of its name in the Notice of Certification Election in the Sample Ballot.
established by the Secretary of Labor and Employment for the conduct of
Held
the election have been violated. Such appeal shall be decided within 15
• A general allegation of duress is not sufficient to invalidate a certification election; it
calendar days.
must be shown by competent and credible proof. It was not shown how the
misprinting allegedly “caused confusion in the minds of independent voters and
When granted - shall not be subject to appeal.
demoralization in the ranks of those inclined to favor the union.”
Any issue may be raised by means of protest on
the conduct and results of the certification
Unorganized election. D. Certification of Designated Majority Union
When denied - may be appealed to the Office of • Exclusive Bargaining Representative217
Appeal212 o Refers to a legitimate labor union duly recognized or certified as the sole
the Secretary within ten (10) days from receipt
thereof. and exclusive bargaining representative or agent of all the employees in a
The order granting or denying the petition, may bargaining unit.
Organized be appealed to the Office of the Secretary within
ten (10) days from receipt thereof. Organized Establishments218 Unorganized Establishments219
The labor union receiving the majority of the In any establishment where there is no
Where to File The memorandum of appeal shall be filed in the Regional Office valid votes cast shall be certified as the certified bargaining agent, a certification
Appeal213 where the petition originated. exclusive bargaining agent of all the workers election shall automatically be conducted
in the unit. by the Med-Arbiter upon the filing of a
Finality of Where no appeal is filed within 10 days from receipt thereof, the petition by any legitimate labor
Order/Decision214 Med-Arbiter shall enter the finality of the order/decision. organization.

211 216
LC, Art. 272 IR, Book V, Rule VIII, Sec. 21
212 217
IR, Book V, Rule VIII, Sec. 17 IR, Book V, Rule I, Sec. 1(t)
213
IR, Book V, Rule VIII, Sec. 18 218
LC, Art. 268
214
IR, Book V, Rule VIII, Sec. 19 219
LC, Art. 269
215
IR, Book V, Rule VIII, Sec. 20
 LABOR RELATIONS S M I L E N O T E S ☺ | 61

The union which obtained a majority of the valid votes cast shall be
Certification of certified as the sole and exclusive bargaining agent of all the
Collective employees in the appropriate bargaining unit within 5 days from the
Bargaining Agent220 day of the election, provided no protest is recorded in the minutes
of the election.
• The union is admittedly not the exclusive representative of the majority of the
employees of petitioner, hence, it could not demand from the company the right to
bargain collectively in their behalf.
E. Bars to Certification Election

Within 24 hours from final canvass of votes, there being a valid
election, the Election Officer shall transmit the records of the case
to the Med-Arbiter who shall issue an order proclaiming the results
and certifying the union which obtained a majority of the valid
votes, under any of the following conditions:
Proclamation and
(a) no protest was filed or, even if one was filed, the same was
Certification of the
not perfected;
Result of the
(b) no challenge or eligibility issue was raised or, even if one was
Election221
raised, the resolution of the same will not materially change
the results of the elections.
The winning union shall have the rights, privileges and obligations
of a duly certified collective bargaining agent from the time the
certification is issued.
091 Militante v. NLRC, 246 SCRA 365 (1995);
Facts
• The rival union contends that they were excluded from the benefits of a case ruled
in favor of their bargaining unit because they were not made parties to the case.
Held
• Where a union certified as the exclusive bargaining agent in a bargaining unit had
previously filed a case in representation not only of its members but also of the
members of a rival union, the latter’s members cannot subsequently claim that they
were not parties in the earlier case.
092 Phil. Diamond Hotel and Resort, Inc. (Manila Diamond Hotel) v. Manila Diamond Hotel
Employees Union, G.R. No. 158075, June 30, 2006
Facts
• A union staged a strike on the ground that the company refused to bargain
collectively with them.
Held
• Only the labor organization designated or selected by the majority of the employees
in an appropriate collective bargaining unit is the exclusive representative of the
employees in such unit for the purpose of collective bargaining.
1. One Year Bar/Certification year Rule
When a voluntary recognition has been entered or a valid
Certification Year
certification, consent or run-off election has been conducted within
Bar Rule222
1 year prior to the filing of the petition for certification election.
093 R. Transport Corp. v. Laguesma, G.R. No. 106830 November 16, 1993
Facts
• The union filed a petition for certification election which was denied because it did
not represent the entire bargaining unit. As such, it filed a second petition for
certification election, this time, including the entire bargaining unit. The company
sought to dismiss the petition on the ground of res judicata.
Held
• The Court held that there was no identity of parties where the first action did not
include parties essential to the bargaining unit while the second action did include
all the employees who are excluded in the first action.
• The Certification Year Bar Rule did not apply. By “final certification election result” is
meant that an actual election, that is, ballots were cast and there was counting of
votes that was conducted.
094 Kaisahan ng Manggagawang Pilipino v. Trajano, 201 SCRA 453 (1991)
Facts
• A contending union filed a petition for certification election. This was opposed by
the incumbent union on the ground of the Certification Year Bar Rule.
Held
• The Certification Year Bar Rule can have no application to the case at bar. It had
already been 4 years since the certification of the incumbent union.
2. Negotiation Bar Rule
When the duly certified union has commenced and sustained
Negotiation Bar
negotiations in good faith with the employer within the one year
Rule223
period referred to in the immediately preceding paragraph.

220 223
IR, Rule IX, Sec. 16 IR, Book V, Rule VIII, Secs. 3(b) & 14(d)
221
IR, Rule IX, Sec. 20
222
IR, Book V, Rule VIII, Sec. 3(a) & 14(c)
 LABOR RELATIONS
3. Deadlock Bar Rule
When a bargaining deadlock had been submitted to conciliation or
Deadlock Bar
arbitration or had become the subject of a valid notice of strike or
Rule224
lockout.
095 Divine Word University of Tacloban v. Sec. Of Labor and Employment, 213 SCRA 759 (1992)
Facts
• The University filed a petition for certification election. This was opposed to by the
incumbent union on the ground of the Deadlock Bar Rule.
Held
• A “deadlock” is defined as the “counteraction of things producing entire stoppage; a
state of inaction or of neutralization caused by the opposition of persons or of
factions; standstill.” There is a deadlock when there is a “complete blocking or
stoppage resulting from the action of equal and opposed forces; as, the deadlock of
a jury or legislature.”
• The word is synonymous with the word impasse which, within the meaning of the
American federal labor laws, “presupposes reasonable effort at good faith
bargaining which, despite noble intentions, does not conclude in agreement
between the parties.” A thorough study of the records reveals that there was no
“reasonable effort at good faith bargaining” specially on the part of the University.
Its indifferent attitude towards collective bargaining inevitably resulted in the failure
of the parties to arrive at an agreement.
• Although technically the University has the right to file the petition for certification
election as there was no bargaining deadlock to speak of, to grant its prayer would
put an unjustified premium on bad faith bargaining.
224
IR, Book V, Rule VIII, Sec. 3(c) &14(d)
225
IR, Book V, Rule VIII, Sec. 3(d), 14(b) & Sec. 24
226
IR, Book V, Rule VIII, Sec. 14(b)
227
IR, Book V, Rule VIII, Sec. 24
S M I L E N O T E S ☺ | 62
4. Contract Bar Rule
When a collective bargaining agreement has been registered.
Contract Bar Rule225 Where such is registered, the petition may be filed only within 60
days prior to its expiry (freedom period).
• The sixty-day period based on the original collective bargaining agreement shall not
be affected by any amendment, extension or renewal of the collective bargaining
agreement.226
• The representation case shall not be adversely affected by a collective bargaining
agreement registered before or during the last 60 days of a subsisting agreement or
during the pendency of the representation case.227
• Prohibition on Certification Election 228
o The Bureau shall not entertain any petition for certification election or any
other action which may disturb the administration of duly registered
existing collective bargaining agreements affecting the parties.
• Terms of a Collective Bargaining Agreement 229
Representation Aspect All other provisions of
Term of 5 years Term of 3 years
• No petition questioning the majority status of the incumbent bargaining agent shall
be entertained and no certification election shall be conducted outside of the
freedom period immediately before the date of expiry of such five-year term of the
Collective Bargaining Agreement.
• Any agreement on such other provisions of the Collective Bargaining Agreement
entered into within six (6) months from the date of expiry of the term of such other
provisions as fixed in such Collective Bargaining Agreement, shall retroact to the day
immediately following such date. If any such agreement is entered into beyond six
months, the parties shall agree on the duration of retroactivity thereof.
228
LC, Arts. 238
229
LC, Art. 265
 LABOR RELATIONS
• Procedure in Collective Bargaining230
o The following procedures shall be observed in collective bargaining:
(a) When a party desires to negotiate an agreement, it shall serve a
written notice upon the other party with a statement of its
proposals. The other party shall make a reply thereto not later
than 10 calendar days from receipt of such notice;
(b) Should differences arise on the basis of such notice and reply,
either party may request for a conference which shall begin not
later than 10 calendar days from the date of request;
(c) If the dispute is not settled, the Board shall intervene upon
request or at its own initiative and immediately call the parties
to conciliation meetings. The Board shall have the power to issue
subpoenas requiring the attendance of the parties to such
meetings;
(d) During the conciliation proceedings, the parties are prohibited
from doing any act which may disrupt or impede the early
settlement of the disputes; and
(e) The Board shall exert all efforts to settle disputes amicably and
encourage the parties to submit their case to a voluntary
arbitrator.
096 Colegio de San Juan de Letran v. Assoc. G.R. No. 141471, September 18, 2000
Facts
• The university refused to bargain with the incumbent union on the ground that a
petition for certification election was filed and as such, its authority to negotiate on
behalf of the employees was challenged.
Held
• In order to allow the employer to validly suspend the bargaining process there must
be a valid petition for certification election raising a legitimate representation issue.
Hence, the mere filing of a petition for certification election does not ipso facto
justify the suspension of negotiation by the employer.
• In the case at bar, the lifetime of the previous CBA had already expired. Clearly, the
petition was filed outside the freedom period. Hence, the filing thereof was barred
by the existence of a valid and existing collective bargaining agreement.
230
LC, Art. 261
231
IR, Book V, Rule XI, Sec. 3, 2nd par.
S M I L E N O T E S ☺ | 63
097 Samahan ng Manggagawa sa Permex v. Sec. of Labor, G.R. No. 107792. March 2, 1998
SUPRA
Facts
• Barely ten months after the employees had voted “no union” in a certification
election, a new union was formed and was voluntarily recognized by the company
as the exclusive bargaining agent. Such new union entered into a CBA with the
company but another union filed a petition for certification election.
Held
• The Contract Bar Rule is not applicable in this case. Excepted from the contract-bar
rule are certain types of contracts which do not foster industrial stability, such as
contracts where the identity of the representative is in doubt. Any stability derived
from such contracts must be subordinated to the employees’ freedom of choice
because it does not establish the kind of industrial peace contemplated by the law.
• Here, the new union entered into a CBA with the company when its status as
exclusive bargaining agent of the employees had not yet been established.
098 Samahan ng Manggagawa sa Pacific Plastic v. Laguesma, 267 SCRA 303 (1997) SUPRA
Facts
• A CBA was entered into while representation proceedings were pending.
Held
• The representation case shall not be adversely affected by a collective bargaining
agreement registered before or during the last 60 days of a subsisting agreement or
during the pendency of the representation case
F. Effect of Petition For Cancellation of Trade Union Registration
• The filing or pendency of any inter/intra-union dispute and other related labor
relations dispute is not a prejudicial question to any petition for certification election
and shall not be a ground for the dismissal of a petition for certification election or
suspension of proceedings for certification election. 231
099 Samahan ng Manggagawa sa Pacific Plastic v. Laguesma, 267 SCRA 303 (1997) SUPRA
Facts
• There was a pending petition for cancellation of the union’s certificate of registration
when it filed a petition for certification election.
Held
• A certification election can be conducted despite pendency of a petition to cancel
the union registration certificate. At the time the union filed its petition or
certification, it still had the legal personality to perform such act absent an order
directing its cancellation.
 LABOR RELATIONS S M I L E N O T E S ☺ | 64

Summary

When a Petition for Certification Election may be Filed

Unorganized
Organized Establishment
Establishment
With Exclusive
With Exclusive Bargaining Bargaining
Representative but without a CBA Representative
and CBA
Only 1 year after the
General Exclusive Bargaining
Rule Representative’s
Anytime except during
certification
the certification year.
Not when the Exclusive Only during the
Bargaining Representative freedom period of
has commenced and the CBA.
Exceptions sustained negotiations in
good faith.
When there is a CBA
deadlock.
Certification Year here is Certification Year here is the 1 year Freedom period is
the 1 year period from period from the Exclusive Bargaining the 60 day period
the time a certification Representative was certified on the basis before the
election or consent of a certification election or consent expiration of the 5
election was held where election held or when the voluntary year term of the
no union was certified as recognition of the Exclusive Bargaining CBA.
the Exclusive Bargaining Representative was registered.
Representative.
 LABOR RELATIONS S M I L E N O T E S ☺ | 65

B. Bargainable Issues
PART VI - COLLECTIVE BARGAINING:
• The duty to bargain collectively means the performance of a mutual obligation to
GENERAL CONCEPT, PROCEDURE AND ISSUES meet and convene promptly and expeditiously in good faith for the purpose of
negotiating an agreement with respect to:
A. General Concept 1. wages, hours of work and all other terms and conditions of employment;
2. including proposals for adjusting any grievances or questions arising under
1. Policy Declaration such agreement and executing a contract incorporating such agreements
• It is the policy of the State to promote and emphasize the primacy of free collective if requested by either party.
bargaining and negotiations, including voluntary arbitration, mediation and • But such duty does not compel any party to agree to a proposal or to make any
conciliation, as modes of settling labor or industrial disputes. 232 concession.234
• To encourage a truly democratic method of regulating the relations between the
employers and employees by means of agreements freely entered into through Mandatory Subject of Bargaining Permissible Subject of Bargaining
collective bargaining, no court or administrative agency or official shall have the Other party must negotiate over such Other party may or may not negotiate over
power to set or fix wages, rates of pay, hours of work or other terms and conditions proposal. such proposal.
of employment, except as otherwise provided under the Labor Code.233 Proponent may declare a deadlock and Proponent may not declare a deadlock and
strike or lock out to force inclusion of the strike or lock out to force inclusion of the
2. Nature and Purpose proposal in the CBA. proposal in the CBA.

100 Kiok Loy v. NLRC, 141 SCRA 179 (1986) SUPRA
Facts
• It has been indubitably established that (1) respondent Union was a duly certified
bargaining agent; (2) it made a definite request to bargain, accompanied with a copy
of the proposed Collective Bargaining Agreement, which were left unanswered and
unacted upon; and (3) the Company made no counter proposal whatsoever.
Held
• Collective bargaining which is defined as negotiations towards a collective
agreement, is one of the democratic frameworks under the Labor Code, designed to
stabilize the relation between labor and management and to create a climate of
sound and stable industrial peace. It is a mutual responsibility of the employer and
the Union and is characterized as a legal obligation.
• While it is a mutual obligation of the parties to bargain, the employer, however, is
not under any legal duty to initiate contract negotiation. The mechanics of collective
bargaining is set in motion only when the following jurisdictional preconditions are
present, namely:
(1) possession of the status of majority representation of the employees’
representative in accordance with any of the means of selection or
designation provided for by the Labor Code;
(2) proof of majority representation; and
(3) a demand to bargain.
• When there is a substantial connection between the proposal and the nature of the
employee’s work and all other terms and conditions of employment, the same is
considered a mandatory subject of bargaining.
101 Manila Fashions v. NLRC, 264 SCRA 104 (1996)
Facts
• The issue revolves around the validity of a condonation clause for the
implementation of Wage Orders agreed upon in the CBA.
Held
• A CBA provision is void where the parties, in agreeing to condone the
implementation of a Wage Order, contravene its mandate on wage increase—it is
only the Tripartite Wage Productivity Board of the DOLE that could approve
exemption of an establishment from coverage of a Wage Order.
• As in all other contracts, the parties in a CBA may establish such stipulations, clauses,
terms and conditions as they may deem convenient provided they are not contrary
to law, morals, good customs, public order or public policy.
102 Union of Filipro Employees-Drug v. Nestle, G.R. No. 158930-31, August 22, 2006 SUPRA
Facts
• Nestle was of the view that unilateral grants, one-time company grants, company
initiated policies (Retirement Plan) are not proper subjects of CBA negotiations and

232 234
LC, Art. 218(A) (a) LC, Art. 263
233
LC, Art. 218(B)
 LABOR RELATIONS
shall be excluded. The union held a contrary view and filed a case for unfair labor
practice against Nestle.
Held
• The purpose of collective bargaining is the acquisition or attainment of the best
possible covenants or terms relating to economic and non-economic benefits
granted by employers and due the employees.
• The characterization unilaterally imposed by Nestlé on the Retirement Plan cannot
operate to divest the employees of their “vested and demandable right over existing
benefits voluntarily granted by their employer.”
103 Samahan ng Manggagawa sa Top Form Manufacturing v. NLRC, 295 SCRA 171 (1998)
Facts
• The union proposed an automatic across-the-board wage increase provision which
was, however, dropped on the strength of the representation of the Company that
it would grant such increase even if it was not in the CBA.
Held
• A CBA is not an ordinary contract but one impressed with public interest. Only
provisions embodied in the CBA should be so interpreted and complied with—where
a proposal raised by a contracting party does not find print in the CBA, it is not a part
thereof and the proponent has no claim whatsoever to its implementation.
C. Bargaining Procedure235
It is the policy of the State to promote and emphasize the primacy of
collective bargaining, either through single enterprise level
Policy negotiations or through the creation of a mechanism by which
different employers and recognized or certified labor unions in their
establishments bargain collectively.
The parties shall, at the request of either of them, make available
such financial information on the economic situation of the
Disclosure of undertaking as is material and necessary for negotiations. Where the
Information disclosure could be prejudicial to the undertaking, its communication
may be made condition upon a commitment that it would be
regarded as confidential.
When Single Enterprise Bargaining Available
Any voluntarily recognized or certified labor union may demand negotiations with its
employer for terms and conditions of work covering employees in the bargaining unit
concerned.
235
IR, Book V, Rule XVI
S M I L E N O T E S ☺ | 66
Procedure in Single Enterprise Bargaining
A recognized or certified labor union that desires to negotiate with its employer shall submit
such intention in writing together with its proposals for collective bargaining.
The parties may adopt such procedures they may deem appropriate for the early
termination of their negotiations. They shall name their representatives, schedule the
number and frequency of meetings, and agree on wages, benefits and other terms and
conditions of work for all employees covered in the bargaining unit.
When Multi-Employer Bargaining Available
A legitimate labor union(s) and employers may agree in writing to come together for the
purpose of collective bargaining, provided:
(a) only legitimate labor unions who are incumbent exclusive bargaining agents may
participate and negotiate in multi- employer bargaining;
(b) only employers with counterpart legitimate labor unions who are incumbent
bargaining agents may participate and negotiate in multi-employer bargaining; and
(c) only those legitimate labor unions who pertain to employer units who consent to
multi-employer bargaining may participate in multi-employer bargaining.
Procedure in Multi-Employer Bargaining
Multi-employer bargaining may be initiated by the labor unions or by the employers.
(a) Legitimate labor unions who desire to negotiate with their employers collectively
shall execute a written agreement among themselves, which shall contain the
following:
1) the names of the labor unions who desire to avail of multi- employer
bargaining;
2) each labor union in the employer unit;
3) the fact that each of the labor unions are the incumbent exclusive bargaining
agents for their respective employer units;
4) the duration of the collective bargaining agreements, if any, entered into by
each labor union with their respective employers.
Legitimate labor unions who are members of the same registered federation,
national, or industry union are exempt from execution of this written agreement.
(b) The legitimate labor unions who desire to bargain with multi- employers shall send a
written notice to this effect to each employer concerned. The written agreement or
the certificates of registration of the federation, national, or industry union, shall
accompany said notice.
Employers who agree to group themselves or use their existing associations to engage
in multi-employer bargaining shall send a written notice to each of their counterpart
legitimate labor unions indicating their desire to engage in multi-employer
bargaining. Said notice shall indicate the following:
 LABOR RELATIONS
1) the names of the employers who desire to avail of multi- employer bargaining;
2) their corresponding legitimate labor organizations;
3) the fact that each corresponding legitimate union is any incumbent exclusive
bargaining agent;
4) the duration of the current collective bargaining agreement, if any, entered
into by each employer with the counterpart legitimate labor union.
(c) Each employer or concerned labor union shall express its willingness or refusal to
participate in multi-employer bargaining in writing, addressed to its corresponding
exclusive bargaining agent or employer. Negotiations may commence only with
regard to respective employers and labor unions who consent to participate in multi-
employer bargaining;
(d) During the course of negotiations, consenting employers and the corresponding
legitimate labor unions shall discuss and agree on the following:
1) the manner by which negotiations shall proceed;
2) the scope and coverage of the negotiations and the agreement; and
3) where appropriate, the effect of the negotiations on current agreements or
conditions of employment among the parties.
2 signed copies of collective bargaining agreement shall be posted for
Posting and at least 5 days in 2 conspicuous areas in each workplace of the
Registration of employer units concerned. Said collective bargaining agreement shall
Collective affect only those employees in the bargaining units who have ratified
Bargaining it.
Agreement The same collective bargaining agreement shall be registered with
the Department.
1. Private Procedure
• In the absence of an agreement or other voluntary arrangement providing for a more
expeditious manner of collective bargaining, it shall be the duty of employer and the
representatives of the employees to bargain collectively in accordance with the
provisions of the Labor Code.236
2. Labor Code Procedure
• Procedure in Collective Bargaining237
o The following procedures shall be observed in collective bargaining:
(f) When a party desires to negotiate an agreement, it shall serve a
written notice upon the other party with a statement of its
236
LC, Art. 262
237
LC, Art. 261
238
LC, Art. 268
S M I L E N O T E S ☺ | 67
proposals. The other party shall make a reply thereto not later
than 10 calendar days from receipt of such notice;
(g) Should differences arise on the basis of such notice and reply,
either party may request for a conference which shall begin not
later than 10 calendar days from the date of request;
(h) If the dispute is not settled, the Board shall intervene upon
request or at its own initiative and immediately call the parties
to conciliation meetings. The Board shall have the power to issue
subpoenas requiring the attendance of the parties to such
meetings;
(i) During the conciliation proceedings, the parties are prohibited
from doing any act which may disrupt or impede the early
settlement of the disputes; and
(j) The Board shall exert all efforts to settle disputes amicably and
encourage the parties to submit their case to a voluntary
arbitrator.
• In organized establishments238
o At the expiration of the freedom period, the employer shall continue to
recognize the majority status of the incumbent bargaining agent where no
petition for certification election is filed.
• Prohibition on Certification Election239
o The Bureau shall not entertain any petition for certification election or any
other action which may disturb the administration of duly registered
existing collective bargaining agreements affecting the parties.
104 Caltex Refinery Employees Association v. Brillantes, 279 SCRA 218 (1997)
Facts
• When a bargaining dead-lock arose, the SOLE took jurisdiction. The union contends
that the SOLE committed grave abuse of discretion because it largely adopted the
proposals of the company.
Held
• It should be understood that bargaining is not equivalent to an adversarial litigation
where rights and obligations are delineated and remedies applied. It is simply a
process of finding a reasonable solution to a conflict and harmonizing opposite
positions into a fair and reasonable compromise. When parties agree to submit
unresolved issues to the secretary of labor for his resolution, they should not expect
their positions to be adopted in toto. It is understood that they defer to his wisdom
and objectivity in insuring industrial peace. And unless they can clearly demonstrate
bias, arbitrariness, capriciousness or personal hostility on the part of such public
239
LC, Art. 238
 LABOR RELATIONS
officer, the Court will not interfere or substitute the said officer’s judgment with its
own.
3.Conciliation/preventive mediation
• Information and statements made at conciliation proceedings shall be treated as
privileged communication and shall not be used as evidence in the Commission.
Conciliators and similar officials shall not testify in any court or body regarding any
matters taken up at conciliation proceedings conducted by them. 240
• E.O. 251, Sec. 4
o National Conciliation and Mediation Board
▪ A National Conciliation and Mediation Board is hereby created
and shall absorb the conciliation mediation and voluntary
arbitration functions of the Bureau of Labor of Relations. It shall
be an attached agency under the administrative supervision of
the Secretary of Labor and Employment.
o The Board shall have the following functions:
(a) Formulate policies, programs, standards, procedures, manuals
of operation and guidelines pertaining to effective mediation
and conciliation of labor disputes;
(b) Perform preventive mediation and conciliation functions;
(c) Coordinate and maintain linkages with other sectors of
institutions, and other government authorities concerned with
matters relative to the prevention and settlement of labor
disputes;
(d) Formulate policies, plans, programs, standards, procedures,
manuals of operation and guidelines pertaining to the promotion
of cooperative and non-adversarial schemes, grievance
handling, voluntary arbitration and other voluntary modes of
dispute settlements;
(e) Administer the voluntary arbitration program; maintain/update
a list of voluntary arbitrations; compile arbitration awards and
decisions;
(f) Provide counselling and preventive mediation assistance
particularly in the administration of collective agreement;
awards and decisions;
(g) Monitor and exercise technical supervision over the Board
programs being implemented in the regional offices; and
(h) Perform such other functions as may be provided by law or
assigned by the Secretary.
240
LC, Art. 239
241
IR, Book V, Rule XXII, Sec. 1
S M I L E N O T E S ☺ | 68
o Tripartite Voluntary Arbitration Advisory Council
▪ A Tripartite Voluntary Arbitration Advisory Council is hereby
created and attached to the National Conciliation and Mediation
Board. The Tripartite Voluntary Arbitration Advisory Council shall
advise the National Conciliation Board on matters pertaining to
the promotion of voluntary arbitration as the preferred mode of
dispute settlement.
105 Tabigue v. International Copra Export Corp., G.R. No. 183335, December 23, 2009
Facts
• The nature and functions of the National Conciliation and Mediation Board is at
issue.
Held
• Given NCMB’s functions, it cannot be considered a quasi-judicial agency. An agency
is said to be exercising judicial function where it has the power to determine what
the law is and what the legal rights of the parties are, and then undertakes to
determine these questions and adjudicate upon the rights of the parties. Quasi-
judicial function is a term which applies to the action, discretion, etc. of public
administrative officers or bodies, who are required to investigate facts or ascertain
the existence of facts, hold hearings, and draw conclusions from them as a basis for
their official action and to exercise discretion of a judicial nature.
• Conciliation of Labor-Management Disputes241
o The board may, upon request or upon its own initiative, provide
conciliation-mediation services to labor disputes other than notices of
strikes or lockouts. Conciliation cases which are not subjects of notices of
strike or lockout shall be docketed as preventive mediation cases.
• Action on Notice242
o Upon receipt of the notice, the regional branch of the Board shall exert all
efforts at mediation and conciliation to enable the parties to settle the
dispute amicably. The regional branch of the Board may, upon agreement
of the parties, treat a notice as a preventive mediation case. It shall also
encourage the parties to submit the dispute to voluntary arbitration.
o During the proceedings, the parties shall not do any act which may disrupt
or impede the early settlement of the dispute. They are obliged to bargain
collectively in good faith and to participate fully and promptly in the
conciliation meetings called by the regional branch of the Board.
o A notice, upon agreement of the parties, may be referred to alternative
modes of dispute resolution, including voluntary arbitration.
242
IR, Book V, Rule XXII, Sec. 9
 LABOR RELATIONS
106 NUWHRAIN-APL-IUF Dusit Hotel Nikko Chapter v. CA, G.R. No. 163942, November 11, 2008
Facts
• The Union staged a concerted violation of the Hotel’s Grooming Standards which
resulted in the temporary cessation and disruption of the Hotel’s operations.
Held
• By shaving their heads and cropping their hair, the Union officers and members
violated the Implementing Rules of the Labor Code. This rule prohibits the
commission of any act which will disrupt or impede the early settlement of the labor
disputes that are under conciliation.
4. Duty to Bargain
• Duty to Bargain Collectively in the Absence of Collective Bargaining Agreements243
o In the absence of an agreement or other voluntary arrangement providing
for a more expeditious manner of collective bargaining, it shall be the duty
of employer and the representatives of the employees to bargain
collectively in accordance with the provisions of the Labor Code.
• Meaning of Duty to Bargain Collectively244
o The duty to bargain collectively means the performance of a mutual
obligation to meet and convene promptly and expeditiously in good faith
for the purpose of negotiating an agreement with respect to:
1. wages, hours of work and all other terms and conditions of
employment;
2. including proposals for adjusting any grievances or questions
arising under such agreement and executing a contract
incorporating such agreements if requested by either party.
o But such duty does not compel any party to agree to a proposal or to make
any concession.
• Duty to Bargain Collectively When There Exists a Collective Bargaining Agreement 245
o When there is a collective bargaining agreement, the duty to bargain
collectively shall also mean that neither party shall terminate nor modify
such agreement during its lifetime. However, either party can serve a
written notice to terminate or modify the agreement at least 60 days prior
to its expiration date. It shall be the duty of both parties to keep the status
quo and to continue in full force and effect the terms and conditions of the
existing agreement during the 60-day period and/or until a new agreement
is reached by the parties.
• Rights of Legitimate Labor Organizations246
o A legitimate labor organization shall have the right to be furnished by the
employer, upon written request, with its annual audited financial
243
LC, Art. 262
244
LC, Art. 263
245
LC, Art. 264
S M I L E N O T E S ☺ | 69
statements, including the balance sheet and the profit and loss statement,
within sixty (60) calendar days before the expiration of the existing
collective bargaining agreement, or during the collective bargaining
negotiation.
• Unfair Labor Practices of Employers247
o It shall be unlawful for an employer to violate the duty to bargain
collectively.
107 P.I. Mfg. Inc. v. P.I. Mfg. Supervisors’ and Foremen Association, 543 SCRA 613 (2008)
Facts
• Due to a Wage Order, a wage distortion was created. As such, the union and the
company entered into a CBA fixing such wage distortion. The union now contends
that the CBA was in violation of the Wage Order.
Held
• The duty to bargain requires that the parties deal with each other with open and fair
minds. A sincere endeavor to overcome obstacles and difficulties that may arise, so
that employer-employee relations may be stabilized and industrial strife eliminated,
must be apparent. The union cannot invoke the beneficial provisions of the CBA but
disregard the concessions it voluntary extended to the company. The goal of
collective bargaining is the making of agreements that will stabilize business
conditions and fix fair standards of working conditions.
108 Colegio de San Juan de Letran v. Assoc., G.R. No. 141471, September 18, 2000
Facts
• Letran argues that the authority of the union to negotiate on behalf of the employees
was challenged when a rival union filed a petition for certification election. As such,
it refused to bargain with it.
Held
• An employer’s utter lack of interest in bargaining with the union is a clear violation
of Article 250 of the Labor Code governing the procedure in collective bargaining,
and a company’s refusal to make counter-proposal to the union’s proposed CBA is
an indication of its bad faith.
246
LC, Art. 251
247
LC, Art. 259
 LABOR RELATIONS S M I L E N O T E S ☺ | 70

109 Faculty Association of MAPUA v CA, G.R. No. 164060. June 15, 2007. 2. Registration
Facts • Registry of Unions and File of Collective Bargaining Agreements 250
• A new ranking system was agreed upon in the CBA by the union and MAPUA. o The Bureau shall keep a registry of legitimate labor organizations and shall
However, MAPUA unilaterally changed the ranking system. also maintain a file of all collective bargaining agreements and other
Held related agreements and records of settlement of labor disputes and copies
• Until a new CBA is executed by and between the parties, they are duty-bound to of orders and decisions of voluntary arbitrators or panel of voluntary
keep the status quo and to continue in full force and effect the terms and conditions arbitrators. The file shall be open and accessible to interested parties
of the existing agreement. The law does not provide for any exception nor provided that no specific information submitted in confidence shall be
qualification on which economic provisions of the existing agreement are to retain disclosed unless:
its force and effect. Therefore, it must be understood as encompassing all the terms 1. authorized by the Secretary, or
and conditions in the said agreement. 2. when it is at issue in any judicial litigation, or
3. when public interest or national security so requires.
D. The Collective Bargaining Agreement o Within 30 days from the execution of a Collective Bargaining Agreement,
the parties shall submit copies of the same directly to the Bureau or the
1. Definition/Contents Regional Offices of the Department of Labor and Employment for
• Collective Bargaining Agreement248 registration accompanied with verified proofs of its posting in two
o Refers to the contract between a legitimate labor union and the employer conspicuous places in the place of work and ratification by the majority of
concerning wages, hours of work, and all other terms and conditions of all the workers in the bargaining unit. The Bureau or Regional Offices shall
employment in a bargaining unit. act upon the application for registration within 5 calendar days from
• Grievance Machinery and Voluntary Arbitration249 receipt thereof. The Regional Offices shall furnish the Bureau with a copy
o The parties to a Collective Bargaining Agreement shall include therein of the Collective Bargaining Agreement within 5 days from its submission.
provisions that will ensure the mutual observance of its terms and
conditions. They shall establish a machinery for the adjustment and
resolution of grievances arising from the interpretation or implementation
of their Collective Bargaining Agreement and those arising from the
interpretation or enforcement of company personnel policies.
o All grievances submitted to the grievance machinery which are not settled
within 7 calendar days from the date of its submission shall automatically
be referred to voluntary arbitration prescribed in the Collective Bargaining
Agreement.
o For this purpose, parties to a Collective Bargaining Agreement shall name
and designate in advance a Voluntary Arbitrator or panel of Voluntary
Arbitrators, or include in the agreement a procedure for the selection of
such Voluntary Arbitrator or panel of Voluntary Arbitrators, preferably
from the listing of qualified Voluntary Arbitrators duly accredited by the
Board.
o In case the parties fail to select a Voluntary Arbitrator or panel of Voluntary
Arbitrators, the Board shall designate the Voluntary Arbitrator or panel of
Voluntary Arbitrators, as may be necessary, pursuant to the selection
procedure agreed upon in the Collective Bargaining Agreement.

248 250
IR, Book V, Rule I, Sec. 1(j) LC, Art. 237
249
LC, Art. 273
 LABOR RELATIONS
When to File251 Within 30 days from execution of a collective bargaining agreement.
The parties shall submit 2 duly signed copies of the agreement to the
Regional Office which issued the certificate of registration/certificate
of creation of chartered local of the labor union-party to the
agreement.
Where the certificate of creation of the concerned chartered local
Where to File252
was issued by the Bureau, the agreement shall be filed with the
Regional Office which has jurisdiction over the place where it
principally operates.
Multi-employer collective bargaining agreements shall be filed with
the Bureau.
The application for registration shall be accompanied by the original
and 2 duplicate copies of the following which must be certified under
oath by the representative(s) of the employer(s) and labor union(s)
concerned:
(a) The collective bargaining agreement;
(b) A statement that the collective bargaining agreement was
Requirements for posted in at least two (2) conspicuous places in the
Registration253 establishment or establishments concerned for at least five (5)
days before its ratification; and
(c) A statement that the collective bargaining agreement was
ratified by the majority of the employees in the bargaining unit
of the employer or employers concerned.
No other document shall be required in the registration of collective
bargaining agreements.
Payment of The certificate of registration shall be issued by the Regional Office
Registration Fee254 upon payment of the prescribed registration fee.
• Effect of non-registration of the CBA
o Non-registration does not bring into effect the contract bar rule, meaning,
a petition for certification election may be filed. However, the CBA is fully
enforceable between the parties.
3. Beneficiaries
• Exclusive Bargaining Representation and Workers' Participation In Policy and
Decision-Making255
o The labor organization designated or selected by the majority of the
employees in an appropriate collective bargaining unit shall be the
exclusive representative of the employees in such unit for the purpose of
collective bargaining. However, an individual employee or group of
251
IR, Book V, Rule XVII, Sec. 1
252
IR, Book V, Rule XVII, Sec. 1
253
IR, Book V, Rule XVII, Sec. 2
S M I L E N O T E S ☺ | 71
employees shall have the right at any time to present grievances to their
employer.
o Workers shall have the right to participate in policy and decision-making
processes of the establishment where they are employed insofar as said
processes will directly affect their rights, benefits and welfare. For this
purpose, workers and employers may form labor-management councils:
Provided, That the representatives of the workers in such labor-
management councils shall be elected by at least the majority of all
employees in said establishment.
110 Mactan Workers Union v. Aboitiz, 45 SCRA 577 (72)
Facts
• There were two contending unions. One of them entered into a CBA with the
company. However, the profit sharing bonus was not being delivered to the other
union.
Held
• It is a well-settled doctrine that the benefits of a collective bargaining agreement
extend to the laborers and employees in the collective bargaining unit, including
those who do not belong to the chosen bargaining labor organization.
4. Minutes of Negotiation
111 Samahan ng Manggagawa sa Top Form Manufacturing v. NLRC, 295 SCRA 171 (1998)
SUPRA
Facts
• The union proposed an automatic across-the-board wage increase provision which
was, however, dropped on the strength of the representation of the Company that
it would grant such increase even if it was not in the CBA.
Held
• A CBA is not an ordinary contract but one impressed with public interest. Only
provisions embodied in the CBA should be so interpreted and complied with—where
a proposal raised by a contracting party does not find print in the CBA, it is not a part
thereof and the proponent has no claim whatsoever to its implementation.
5. Interpretation, Administration and Enforcement
• Basic Rules in the administration/implementation of the CBA
1. The CBA may not provide for substandard benefits.
2. The provisions of the CBA should be interpreted in accordance with their
literal meaning.
254
IR, Book V, Rule XVII, Sec. 3
255
LC, Art. 267
 LABOR RELATIONS
112 Norkis Free and Independent Workers Union v. Norkis Trading Co., G.R. No. 157098; June
30, 2005
Facts
• There was a stipulation in the CBA that in the event that a law is enacted increasing
minimum wage, an across-the-board increase shall be granted according to the
provisions of the law. However, when a Wage Order was issued, such across-the-
board increase was not implemented.
Held
• Stipulations in a contract must be read together, not in isolation from one another.
When the terms of its clauses are clear and leave no room for doubt as to the
intention of the contracting parties, it would not be necessary to interpret those
terms, whose literal meanings should prevail.
• The Wage Order was intended to fix a new minimum wage only, not to grant across-
the-board wage increases to all employees.
113 University of San Agustin, Inc. v. USAEU-FFW, G.R. No. 177594, July 23, 2009.
Facts
• There was a dispute regarding the meaning of “salary increases.” The union argues
that “salary increases” include not only to the increase in salary but also to
corresponding increases in other benefits.
Held
• It is a familiar and fundamental doctrine in labor law that the CBA is the law between
the parties and they are obliged to comply with its provisions. If the terms of a
contract, in this case the CBA, are clear and leave no doubt upon the intention of the
contracting parties, the literal meaning of their stipulations shall control.
a. Nature
114 Pantranco North Express, Inc. v. NLRC, 259 SCRA 161 (1996)
Facts
• There was a 25-year compulsory retirement provision in the CBA. When one of the
employees retired, he filed an action for illegal dismissal against the company.
Held
• A CBA is not an ordinary contract. “As a labor contract which governs the relations
between labor and capital, it is not merely contractual in nature but impressed with
public interest, thus it must yield to the common good. As such, it must be construed
liberally rather than narrowly and technically, and the courts must place a practical
and realistic construction upon it, giving due consideration to the context in which it
is negotiated and purpose which it is intended to serve.”
256
LC, Art. 274
S M I L E N O T E S ☺ | 72
• Being a product of negotiation, the CBA intended the provision on compulsory
retirement to be beneficial to the employees-union members, including herein
private respondent. When he ratified the CBA with the union, he not only agreed to
the CBA but also agreed to conform to and abide by its provisions. Thus, it cannot be
said that he was illegally dismissed.
115 Dole Phils. Inc. v. Pawis ng Makabayang Obrero, G.R. No. 146650, January 13, 2003
Facts
• There was a dispute as to whether the meal allowance in the CBA should be given
exactly after three hours or more than three hours of overtime work.
Held
• The disputed provision of the CBA is clear and unambiguous. The terms are explicit
and the language of the CBA is not susceptible to any other interpretation. The CBA
is the norm of conduct between the company and the union and compliance
therewith is mandated by the express policy of the law.
• As such, the meal allowance should be given after exactly three hours of overtime
work.
b. Grievance Procedure
• Grievance
o Any dispute between the employer and the union regarding:
▪ Interpretation or implementation of the CBA; or
▪ Interpretation or enforcement of company personnel policies.
• Jurisdiction of Voluntary Arbitrators and Panel of Voluntary Arbitrators 256
o The Voluntary Arbitrator or panel of Voluntary Arbitrators shall have
original and exclusive jurisdiction to hear and decide all unresolved
grievances arising from the interpretation or implementation of the
Collective Bargaining Agreement and those arising from the interpretation
or enforcement of company personnel policies.
o Accordingly, violations of a Collective Bargaining Agreement, except those
which are gross in character, shall no longer be treated as unfair labor
practice and shall be resolved as grievances under the Collective
Bargaining Agreement. Gross violations of Collective Bargaining
Agreement shall mean flagrant and/or malicious refusal to comply with the
economic provisions of such agreement.
o The Commission, its Regional Offices and the Regional Directors of the
Department of Labor and Employment shall not entertain disputes,
grievances or matters under the exclusive and original jurisdiction of the
Voluntary Arbitrator or panel of Voluntary Arbitrators and shall
 LABOR RELATIONS
immediately dispose and refer the same to the Grievance Machinery or
Voluntary Arbitration provided in the Collective Bargaining Agreement.
116 USAEU-FFW v. CA, G.R. No. 169632, March 28, 2006
Facts
• The parties commenced negotiations for the economic provisions of the CBA. When
they reached a deadlock, the union staged a strike despite a no strike/no lockout
clause in the existing CBA.
Held
• The main purpose of management and labor in adopting a procedure in the
settlement of their disputes is to prevent a strike or lockout. Thus, this procedure
must be followed in its entirety if it is to achieve its objective.
Jurisdiction of the Secretary of Labor
Before strike or lockout After a strike or lockout
When the Secretary of Labor assumes If a strike has already taken place at the time
jurisdiction over a labor dispute in an of assumption of jurisdiction or
industry indispensable to national interest certification, all striking or locked out
or certifies the same to the NLRC for employees shall immediately return to work
compulsory arbitration, such assumption or and the employer shall immediately resume
certification shall have the effect of operations and readmit all workers under
automatically enjoining the intended or the same terms and conditions prevailing
impending strike or lockout. before the strike or lock-out.
• The Secretary of Labor’s jurisdiction over labor disputes must include and extend to
all questions and controversies arising therefrom, including cases over which the
Labor Arbiter has exclusive jurisdiction.
117 Atlas Farm, Inc. v. NLRC, G.R. No. 142244, November 18, 2002
Facts
• Two employees who were removed from service filed an action for illegal dismissal
against the company. The company sought to dismiss the same for failure to comply
with the grievance machinery.
Held
• General Rule
o Labor arbiters have original and exclusive jurisdiction over termination
disputes.
• Exception
o The Voluntary Arbitrator or panel of voluntary arbitrators shall have
original and exclusive jurisdiction to hear and decide all unresolved
grievances arising from the interpretation or implementation of the
257
LC, Art. 265
S M I L E N O T E S ☺ | 73
Collective Bargaining Agreement and those arising from the interpretation
or enforcement of company personnel policies.
o The Commission, its Regional Offices and the Regional Directors of the
Department of Labor and Employment shall not entertain disputes,
grievances or matters under the exclusive and original jurisdiction of the
Voluntary Arbitrator or panel of Voluntary Arbitrators and shall
immediately dispose and refer the same to the grievance Machinery or
Arbitration provided in the Collective Bargaining Agreement.
• But the petitioner cannot arrogate into the powers of Voluntary Arbitrators the
original and exclusive jurisdiction of Labor Arbiters over unfair labor practices,
termination disputes, and claims for damages, in the absence of an express
agreement between the parties.
c. Contract Ambiguity
118 Holy Cross of Davao College, Inc. v. Holy Cross Faculty Union-KAMAPI, G.R. No. 156098;
June 27, 2005
Facts
• There was a dispute regarding the interpretation of a grant-in-aid program provision
in the CBA.
Held
• Any doubt or ambiguity in the contract (CBA) between management and the union
members should be resolved in favor of labor. This is pursuant to Article 1702 of the
Civil Code which provides: “In case of doubt, all labor legislation and all labor
contracts shall be construed in favor of the safety and decent living for the laborer.”
• Contracts which are not ambiguous are to be interpreted according to their literal
meaning and not beyond their obvious intendment; The terms and conditions of a
collective bargaining contract constitute the law between the parties.
d. Contract Duration and Renewal
• Terms of a Collective Bargaining Agreement 257
Representation Aspect All other provisions of
Term of 5 years Term of 3 years
• No petition questioning the majority status of the incumbent bargaining agent shall
be entertained and no certification election shall be conducted outside of the
freedom period immediately before the date of expiry of such five-year term of the
Collective Bargaining Agreement.
 LABOR RELATIONS
• Any agreement on such other provisions of the Collective Bargaining Agreement
entered into within six (6) months from the date of expiry of the term of such other
provisions as fixed in such Collective Bargaining Agreement, shall retroact to the day
immediately following such date. If any such agreement is entered into beyond six
months, the parties shall agree on the duration of retroactivity thereof.
Example
CBA Took Effect November 1, 2014
“All other Provisions” Expiry Date October 31, 2017
Representational Term Expiry Date October 31, 2019
• Duty to Bargain Collectively When There Exists a Collective Bargaining Agreement 258
o When there is a collective bargaining agreement, the duty to bargain
collectively shall also mean that neither party shall terminate nor modify
such agreement during its lifetime. However, either party can serve a
written notice to terminate or modify the agreement at least 60 days prior
to its expiration date.
• Term of Representation Status; Contract Bar Rule259
o The representation status of the incumbent exclusive bargaining agent
which is a party to a duly registered collective bargaining agreement shall
be for a term of 5 years from the date of the effectivity of the collective
bargaining agreement. No petition questioning the majority status of the
incumbent exclusive bargaining agent or petition for certification election
filed outside of the sixty-day period immediately preceding the expiry date
of such five-year term shall be entertained by the Department.
o The five-year representation status shall not be affected by a subsequent
collective bargaining agreement executed between the same bargaining
agent and the employer during the same five-year period.
• Re-negotiation of Collective Bargaining Agreements260
o All provisions of a collective bargaining agreement, except the
representation status of the incumbent bargaining agent shall, as a matter
of right, be renegotiated not later than 3 years after its execution.
o The re-negotiated collective bargaining agreement shall be ratified and
registered with the same Regional Office where the preceding agreement
was registered. The same requirements and procedure in the registration
of collective bargaining agreements prescribed in the preceding rules shall
be applied.
258
LC, Art. 264
259
IR, Book V, Rule XVII, Sec. 7
260
IR, Book V, Rule XVII, Sec. 8
S M I L E N O T E S ☺ | 74
• General Rule
o It shall be the duty of both parties to keep the status quo and to continue
in full force and effect the terms and conditions of the existing agreement
during the 60-day period and/or until a new agreement is reached by the
parties.261
• Exception
o When the terms of the CBA are specifically time bound.
Example
CBA Expiry Date October 31, 2017
If within 6 months from
October 31, 2017, meaning until New CBA takes effect on
April 30, 2018, the parties November 1, 2017
agree on a new CBA
If within 6 months from
October 31, 2017, meaning until New CBA takes effect according to
April 30, 2018, the parties Date Agreed upon by the parties
did not agree on a new CBA
119 New Pacific Timber v. NLRC, G.R. No. 124224, March 17, 2000
Facts
• The issue at bar is whether the term of economic provisions can be extended beyond
the period stipulated, and even beyond the 3-year period prescribed by law, in the
absence of a new agreement.
Held
• Until a new Collective Bargaining Agreement has been executed by and between the
parties, they are duty-bound to keep the status quo and to continue in full force and
effect the terms and conditions of the existing agreement. The law does not provide
for any exception nor qualification as to which of the economic provisions of the
existing agreement are to retain force and effect; therefore, it must be understood
as encompassing all the terms and conditions in the said agreement.
261
LC, Art. 264
 LABOR RELATIONS
120 Rivera v. Espiritu, G.R. No. 135547, January 23, 2002
Facts
• The parties agreed to suspend the CBA for 10 years, on the condition that the
company will continue to recognize the union as the certified bargaining agent of its
employees.
Held
• Under Article 253-A of the Labor Code, the representation limit for the exclusive
bargaining agent applies only when there is an extant CBA in full force and effect. In
the instant case, the parties agreed to suspend the CBA and put in abeyance the limit
on the representation period.
Note on Rivera vs Espiritu
• The ruling creates a loophole in the law which labor unions may abuse. With the
present situation, labor unions can virtually become permanent bargaining agents of
their bargaining units as long as they suspend the CBA. As such, no new labor unions
may represent their bargaining units and no petition for certification elections may
be filed. This is clearly contrary to the policy of the State to promote and emphasize
the primacy of free collective bargaining and negotiations. The ruling contemplates
a situation where unions cannot become the certified bargaining agent of their
respective units even if they hold majority representation, simply because effectivity
of the current CBA has been suspended.
121 Meralco v. Sec. Quisimbing G.R. No. 127598, August 1, 2000
Facts
• The issue at bar is the retroactive effect of the arbitral award in favor of the union.
Held
• The Court held that the arbitral award in this case be made to retroact to the first
day after the six-month period following the expiration of the last day of the CBA.
This is because the Court cannot ignore the enormous cost that MERALCO will have
to bear as a consequence of the full retroaction of the arbitral award to the date of
expiry of the CBA, and the inevitable effect that it would have on the national
economy. On the other hand, under the policy of social justice, the law bends over
backward to accommodate the interests of the working class on the humane
justification that those with less privilege in life should have more in law. Balancing
these two contrasting interests, the Court turned to the dictates of fairness and
equitable justice and thus arrived at a formula that would address the concerns of
both sides.
S M I L E N O T E S ☺ | 75
e. CBA and 3rd Party Liability
122 Associated Labor Unions v. NLRC, 204 SCRA 913 (1991)
Facts
• Caltex bought MOPI. The union is now asserting that its CBA with MOPI was binding
on Caltex.
Held
• Unless expressly assumed, labor contracts such as employment contracts and
collective bargaining agreements are not enforceable against a transferee of an
enterprise, labor contracts being in personam, thus binding only between the
parties. As a general rule, there is no law requiring a bona fide purchaser of assets of
an on-going concern to absorb in its employ the employees of the latter. However,
although the purchaser of the assets or enterprise is not legally bound to absorb in
its employ the employees of the seller of such assets or enterprise, the parties are
liable to the employees if the transaction between the parties is colored or clothed
with bad faith. The sale or disposition must be motivated by good faith as an element
of exemption from liability.
f. CBA and Disaffiliation
123 Elisco-Elirol Labor Union v. Noriel, 80 SCRA 682 (1977)
Facts
• The local union disaffiliated from its mother union and wanted to continue enforcing
the current CBA even though the same was entered into between the company and
the mother union.
Held
• The Court applied the “substitutionary” doctrine.
o Even during the effectivity of a collective bargaining agreement executed
between employer and employees thru their agent, the employees can
change said agent but the contract continues to bind them up to its
expiration date. They may bargain however for the shortening of said
expiration date.
o The majority of the employees is the true party in interest to the contract,
holding rights through the agency of the union representative. Thus, any
exclusive interest claimed by the agent is defeasible at the will of the
principal.
 LABOR RELATIONS S M I L E N O T E S ☺ | 76

g. Jurisdiction of Voluntary Arbitrators

• Voluntary Arbitrator
1. Any person accredited by the NCMB as such; or
2. Any person named or designated in the CBA by the parties; or
3. One chosen by the parties pursuant to a selection procedure agreed upon
in the CBA.
• Jurisdiction of Voluntary Arbitrators and Panel of Voluntary Arbitrators 262
o The Voluntary Arbitrator or panel of Voluntary Arbitrators shall have
original and exclusive jurisdiction to hear and decide all unresolved
grievances arising from the interpretation or implementation of the
Collective Bargaining Agreement and those arising from the interpretation
or enforcement of company personnel policies.
o Accordingly, violations of a Collective Bargaining Agreement, except those
which are gross in character, shall no longer be treated as unfair labor
practice and shall be resolved as grievances under the Collective
Bargaining Agreement. Gross violations of Collective Bargaining
Agreement shall mean flagrant and/or malicious refusal to comply with the
economic provisions of such agreement.
o The Commission, its Regional Offices and the Regional Directors of the
Department of Labor and Employment shall not entertain disputes,
grievances or matters under the exclusive and original jurisdiction of the
Voluntary Arbitrator or panel of Voluntary Arbitrators and shall
immediately dispose and refer the same to the Grievance Machinery or
Voluntary Arbitration provided in the Collective Bargaining Agreement.
• Jurisdiction over other Labor Disputes263
o The Voluntary Arbitrator or panel of Voluntary Arbitrators, upon
agreement of the parties, shall also hear and decide all other labor disputes
including unfair labor practices and bargaining deadlocks.

Compulsory Arbitration Voluntary Arbitration

Labor Arbiter Grievance Machinery
↓ ↓
NLRC Voluntary Arbitrator
↓ ↓
Court of Appeals Court of Appeals
↓ ↓
Supreme Court Supreme Court

262
LC, Art. 274
263
LC, Art. 275
 LABOR RELATIONS
PART VII - UNFAIR LABOR PRACTICE
A. In General
1. Definition and General Concept
• Concept of Unfair Labor Practice and Procedure for Prosecution Thereof264
o Unfair labor practices violate the constitutional right of workers and
employees to self-organization, are inimical to the legitimate interests of
both labor and management, including their right to bargain collectively
and otherwise deal with each other in an atmosphere of freedom and
mutual respect, disrupt industrial peace and hinder the promotion of
healthy and stable labor-management relations.
o Consequently, unfair labor practices are not only violations of the civil
rights but are also criminal offenses against the State.
o Subject to the exercise by the President or by the Secretary of Labor, the
civil aspects of all cases involving unfair labor practices, which may include
claims for actual, moral, exemplary and other forms of damages,
attorney's fees and other affirmative relief, shall be under the jurisdiction
of the Labor Arbiters.
o The Labor Arbiters shall give utmost priority to the hearing and resolution
of all cases involving unfair labor practices which shall be resolved within
30 calendar days.
o Recovery of civil liability in the administrative proceedings shall bar
recovery under the Civil Code.
o No criminal prosecution may be instituted without a final judgment finding
that an unfair labor practice was committed having been first obtained.
During the pendency of such administrative proceeding, the running of the
period of prescription of the criminal offense shall be interrupted.
o The final judgment in the administrative proceedings shall not be binding
in the criminal case nor be considered as evidence of guilt but merely as
proof of compliance of the requirements set forth.
• Unfair Labor Practice violates:
1. Right to self-organization;
2. Right to converted activities;
3. Right to collectively bargain.
124 Culili v. Eastern Telecommunications Philippines, Inc., G.R. No. 165381, February 9, 2011
Facts
• The issue in this case is whether the contracting out of services being performed by
union members per se amounts to unfair labor practice.
264
LC, Art. 258
S M I L E N O T E S ☺ | 77
Held
• “Unfair labor practice” refers to acts that violate the workers’ right to organize. An
employer may only be held liable for unfair labor practice if it can be shown that his
acts affect in whatever manner the right of his employees to self-organize.
• There is no showing that the company was motivated by ill will, bad faith or malice,
or that it was aimed at interfering with its employees right to self-organize.
125 Galaxie Steel Workers Union v. NLRC, G.R. No. 165757, October 2006
Facts
• The company closed down, causing the union members to lose their employment.
Held
• Unfair labor practice relate to the workers’ right to self-organization and to the
observance of Collective Bargaining Agreement without which relation the acts, no
matter how unfair, are not deemed unfair labor practices.
126 Sterling Products International, Inc. v. Secretary of Labor, 7 SCRA 446 (1963)
Facts
• An independent contractor who was dismissed from service filed a case for unfair
labor practice against the company.
Held
• Where an employee has not been connected with any labor organization, nor has he
ever attempted to join or assist one, or to contribute thereto, the company cannot
be considered as having committed an unfair labor practice in dismissing him.
2. Requisites
a. Employer-Employee Relationship
127 American President Lines Inc. v. Clave, 114 SCRA 826
Facts
• The question is whether or not an employer-employee relationship is a requisite for
the claim of unfair labor practice.
Held
• When there is no employer-employee relationship between the company and the
union, it should necessarily follow that the company cannot be guilty of unfair labor
practice. Unfair labor practice may be committed only within the context of an
employer-employee relationship.
 LABOR RELATIONS
b. Act must be specifically defined in the law
Unfair Labor Practices of Employers265
To interfere with, restrain or coerce
employees in the exercise of their right to self-
organization;
To require as a condition of employment that
a person or an employee shall not join a labor
organization or shall withdraw from one to
which he belongs;
To contract out services being performed by
union members when such will interfere with,
restrain or coerce employees in the exercise
of their right to self-organization;
To initiate, dominate, assist or otherwise
interfere with the formation or
administration of any labor organization,
including the giving of financial or other
support to it or its organizers or supporters;
To discriminate in regard to wages, hours of
work and other terms and conditions of
employment in order to encourage or
discourage membership in any labor
organization.
Nothing in law shall stop the
parties from requiring
General
membership in a recognized
Rule
collective bargaining agent as a
condition for employment
Except those employees who
Exceptions are already members of
another union at the time of the
265
LC, Arts. 259
266
LC, Art. 260
Unfair Labor Practices of Labor
Organizations266
To restrain or coerce employees in the
exercise of their right to self- organization.
However, a labor organization shall have
the right to prescribe its own rules with
respect to the acquisition or retention of
membership;
To cause or attempt to cause an employer
to discriminate against an employee,
including discrimination against an
employee with respect to whom
membership in such organization has
been denied or to terminate an employee
on any ground other than the usual terms
and conditions under which membership
or continuation of membership is made
available to other members;
S M I L E N O T E S ☺ | 78
signing of the collective
bargaining agreement.
Religious Objectors.
Employees of an appropriate bargaining
unit who are not members of the
recognized collective bargaining agent
may be assessed a reasonable fee
equivalent to the dues and other fees
paid by members of the recognized
collective bargaining agent, if such non-
union members accept the benefits
under the collective bargaining
agreement: Provided, That the
individual authorization required shall
not apply to the non-members of the
recognized collective bargaining agent;
To dismiss, discharge or otherwise prejudice
or discriminate against an employee for
having given or being about to give testimony;
To violate the duty, or refuse to bargain
To violate the duty to bargain collectively; collectively with the employer, provided it
is the representative of the employees;
To cause or attempt to cause an employer
to pay or deliver or agree to pay or deliver
any money or other things of value, in the
nature of an exaction, for services which
To pay negotiation or attorney's fees to the are not performed or not to be performed,
union or its officers or agents as part of the including the demand for fee for union
settlement of any issue in collective negotiations;
bargaining or any other dispute; or To ask for or accept negotiation or
attorney's fees from employers as part of
the settlement of any issue in collective
bargaining or any other dispute; or
To violate a collective bargaining
To violate a collective bargaining agreement.
agreement.
Only the officers, members of governing
Only the officers and agents of corporations, boards, representatives or agents or
associations or partnerships who have members of labor associations or
actually participated in, authorized or ratified organizations who have actually
unfair labor practices shall be held criminally participated in, authorized or ratified
liable. unfair labor practices shall be held
criminally liable.
 LABOR RELATIONS
3. Burden of proof
128 Tiu v. NLRC, G.R. No. 123276. August 18, 1997.
Facts
• The notice of strike filed by the union contained general allegations that
management committed unfair labor practices by its gross violation of the economic
provisions in their CBA.
Held
• It is not enough that the union believes that the employer committed acts of unfair
labor practice when the circumstances clearly negate even a prima facie showing to
warrant such a belief.
129 Central Azucarera De Bais Employees Union-NFL v. Central Azucarera De Bais, Inc., G.R.
No. 186605, November 17, 2010
Facts
• Management believed that the union was no longer the representative of the
workers. As such, it refused to negotiate with it and instead, negotiated with a newly
founded union.
Held
• For a charge of unfair labor practice to prosper, it must be shown that management
was motivated by ill will, bad faith, or fraud, or was oppressive to labor, or done in a
manner contrary to morals, good customs, or public policy, and, of course, that social
humiliation, wounded feelings or grave anxiety resulted in suspending negotiations
with the union.
130 Union of Filipro Employees-DFA-KMU v. Nestle Philippines, Inc., G.R. Nos. 158930-31.
SUPRA
Facts
• Nestle was of the view that unilateral grants, one-time company grants, company
initiated policies (Retirement Plan) are not proper subjects of CBA negotiations and
shall be excluded. The union held a contrary view and filed a case for unfair labor
practice against Nestle.
Held
• There is no per se test of good faith in bargaining. Good faith or bad faith is an
inference to be drawn from the facts. To some degree, the question of good faith
may be a question of credibility. The effect of an employer’s or a union’s individual
actions is not the test of good-faith bargaining, but the impact of all such occasions
or actions, considered as a whole, and the inferences fairly drawn therefrom
collectively may offer a basis for the finding of good or bad faith.
267
LC, Arts. 259(a)
268
LC, Art. 292(g) & (h)
S M I L E N O T E S ☺ | 79
4. Interpretation
131 Caltex Filipino Managers and Supervisors Assn. v. CIR, 44 SCRA 350 (1972)
Facts
• The Company had interfered with the Union by resorting to discriminatory acts,
terminating employees, and spying on union activities.
Held
• In order to attain the laudable objectives of the Labor Code calculated to safeguard
the rights of employees, the provisions thereof should be liberally construed in favor
of employees and strictly against the employer, unless otherwise intended by or
patent from the language of the statute itself.
5. Inter-relations of UPL Acts
132 Republic Savings Bank v. CIR, 21 SCRA 226 (1967) SUPRA
Facts
• In the case at bar, respondents wrote and published a letter to the bank president,
demanding his resignation on the grounds of immorality, nepotism, favoritism and
discrimination in the appointment and promotion of bank employees.
Held
• Assuming that they acted in their individual capacities when they wrote the letter,
they were nonetheless protected, for they were engaged in a concerted activity, in
their right of self-organization that includes concerted activity for mutual aid and
protection, interference with which constitutes unfair labor practice. It is not
necessary that union activity be involved or that collective bargaining be
contemplated.
B. Acts Violative of Right to Self-Organization
1. Interference, Restraint and Coercion
• It shall be unlawful for an employer to interfere with, restrain or coerce employees
in the exercise of their right to self-organization.267
• Miscellaneous Provisions268
o The Ministry shall help promote and gradually develop. with the
agreement of labor organizations and employers, labor-management
cooperation programs at appropriate levels of the enterprise based on
shared responsibility and mutual respect in order to ensure industrial
peace and improvement in productivity. working conditions and the
quality of working life.
 LABOR RELATIONS
o In establishments where no legitimate labor organization exists. labor-
management committees may be formed voluntarily by workers and
employers for the purpose of promoting industrial peace. The Department
of Labor and Employment shall endeavor to enlighten and educate the
workers and employers on their rights and responsibilities through labor
education with emphasis on the policy thrusts of this Code.
133 Hacienda Fatima v. National Federation of Sugarcane Workers-Food, G.R. No. 149440,
January 28, 2003
Facts
• When the laborers formed a union, management refused to negotiate with it and
did not give the workers work for one month.
Held
• From management’s refusal to bargain, to their acts of economic inducements
resulting in the promotion of those who withdrew from the union, the use of armed
guards to prevent the organizers to come in, and the dismissal of union officials and
members, one cannot but conclude that they did not want a union in their
hacienda—a clear interference in the right of the workers to self-organization.
a. Interrogation
134 Scoty’s Department Store v. Micaller, G.R. No. L-8116, August 25, 1956
Facts
• Management asked each and every employee whether they were members of the
union and threatened to close the store if they would not dissolve the union.
Held
• Questioning of employees concerning union membership and activities and
disparaging remarks by supervisory employees made in such a way as to hamper the
exercise of free choice on the part of the employees, have been uniformly
condemned as unfair labor practice.
135 Philippine Steam Navigation Co. v. Phil. Marine Officers Guild, 15 SCRA 174 (1965)
Facts
• Management admitted questioning its employees regarding their union
membership but alleges that they did so to ascertain majority representation.
Held
• The rule in this jurisdiction is that subjection by the company of its employees to a
series of questioning regarding their membership in the union or their union
activities, in such a way as to hamper the exercise of free choice on their part,
constitutes unfair labor practice.
S M I L E N O T E S ☺ | 80
b. Speech, Espionage, Economic Coercion
136 The Insular Life Assurance Co. Ltd., Employees Assn. v. Insular Life Assurance Co. Ltd., No.
L-25291. January 30, 1971.
Facts
• The company sent its employees individual letters containing promises of benefits
and threats to obtain replacements for the striking employees.
Held
• Free Speech and Economic coercion
o These letters are not protected by the free speech provisions of the
Constitution. The free speech protection under the Constitution is
inapplicable where the expression of opinion by the employer of his agent
contains a promise of benefit, or threats, or reprisal.
• Espionage
o The act of the company in spying on the activities of the union members is
considered unjustifiable interference in the union activities and is unfair
labor practice.
• It is an unfair labor practice for an employer operating under a collective bargaining
agreement to negotiate or attempt to negotiate with his employees individually in
connection with changes in the agreement. And the basis of the prohibition
regarding individual bargaining with the strikers is that although the union is on
strike, the employer is still under obligation to bargain with the union as the
employees’ bargaining representative.
c. Concerted Activities
137 Philippine Blooming Mills Employees Organization v. Philippines Blooming Mills, Co., 51
SCRA 189 (1973)
Facts
• There was a demonstration held by the union before the Malacanang against alleged
abuses of some Pasig policemen, not against their employer.
Held
• Said demonstration was purely and completely an exercise of their freedom of
expression in general and of their right of assembly and of petition for redress of
grievances in particular before appropriate governmental agency, the Chief
Executive, against the police officers of the municipality of Pasig.
• To regard the demonstration as a violation of the collective bargaining agreement
and a cause for the dismissal is "a potent means of inhibiting speech" and therefore
inflicts a moral as well as mortal wound on the constitutional guarantees of free
expression, of peaceful assembly and of petition.
 LABOR RELATIONS
138 Republic Savings Bank v. CIR, G.R. No. L-20303, September 27, 1967. SUPRA
Facts
• In the case at bar, respondents wrote and published a letter to the bank president,
demanding his resignation on the grounds of immorality, nepotism, favoritism and
discrimination in the appointment and promotion of bank employees.
Held
• Assuming that they acted in their individual capacities when they wrote the letter,
they were nonetheless protected, for they were engaged in a concerted activity, in
their right of self-organization that includes concerted activity for mutual aid and
protection, interference with which constitutes unfair labor practice. It is not
necessary that union activity be involved or that collective bargaining be
contemplated.
2. Non-Union Membership or Withdrawal from Membership as a condition of Employment
(yellow-dog contract)
• It shall be unlawful for an employer to require as a condition of employment that a
person or an employee shall not join a labor organization or shall withdraw from one
to which he belongs.269
139 Visayan Stevedore Trans. Co. v. CIR, 19 SCRA 426 (1967)
Facts
• Management told the union members to quit their union in order to retain their
employment.
Held
• Where the workers not admitted to work were union members and the company
branch manager had told them directly that severance of their connection with the
union was the remedy if they wanted to continue working with the company, there
was unfair labor practice.
3. Contracting out to Discourage Unionism
• It shall be unlawful for an employer to contract out services of functions being
performed by union members when such will interfere with, restrain or coerce
employees in the exercise of their right to self-organization.270
269
LC, Art. 259(b)
270
LC, Art. 259(c)
S M I L E N O T E S ☺ | 81
140 Bankard, Inc. v. NLRC, G.R. No. 171664, March 6, 2013
Facts
• The question is whether contracting out services of functions being performed by
union members constitutes unfair labor practice per se.
Held
• Contracting out of services is an exercise of business judgment or management
prerogative. Absent any proof that management acted in a malicious or arbitrary
manner, the Court will not interfere with the exercise of judgment by an employer.
4. Company Domination of Union
• It shall be unlawful for an employer to initiate, dominate, assist or otherwise
interfere with the formation or administration of any labor organization, including
the giving of financial or other support to it or its organizers or supporters.271
141 Progressive Development Corp. v. CIR, 80 SCRA 434 (1977)
Facts
• The number of regular employees had been reduced substantially through the
management scheme of freeze-hiring policy on positions vacated by regular
employees.
Held
• True, the program might have affected the number of union membership, but it does
not necessarily follow that management indeed purposely sought such result. In the
absence of any showing that management was motivated by ill will, bad faith or
malice, or that it was aimed at interfering with its employees’ right to self-organize,
it cannot be said to have committed an act of unfair labor practice.
• The law on unfair labor practices is not intended to deprive employers of their
fundamental right to prescribe and enforce such rules as they honestly believe to be
necessary to the proper, productive and profitable operation of their business.
5. Discrimination to Encourage/ Discourage Unionism
• It shall be unlawful for an employer to discriminate in regard to wages, hours of work
and other terms and conditions of employment in order to encourage or discourage
membership in any labor organization. 272
• General Rule
o Nothing in law shall stop the parties from requiring membership in a
recognized collective bargaining agent as a condition for employment.
271
LC, Art. 259(d)
272
LC, Art. 259(e)
 LABOR RELATIONS
• Exceptions
1. Except those employees who are already members of another union at the
time of the signing of the collective bargaining agreement.
2. Religious objectors. (Reyes vs. Trajano G.R. No. 84433. June 2, 1992)
a. Valid discrimination: union security clause – requisites
142 Alabang Country Club, Inc. v. NLRC, 545 SCRA 351 (2008)
Facts
• Some union officers were removed from the union because of malversation of union
funds. They were then terminated by the company due to a union security clause.
Held
• There is union shop when all new regular employees are required to join the union
within a certain period as a condition for their continued employment. Termination
of employment by virtue of a union security clause embodied in a CBA is recognized
and accepted in our jurisdiction. This practice strengthens the union and prevents
disunity in the bargaining unit within the duration of the CBA.
• In terminating the employment of an employee by enforcing the union security
clause, the employer needs only to determine and prove that:
(1) the union security clause is applicable;
(2) the union is requesting for the enforcement of the union security provision
in the CBA; and
(3) there is sufficient evidence to support the union’s decision to expel the
employee from the union.
• These requisites constitute just cause for terminating an employee based on the
CBA’s union security provision.
143 Del Monte v. Zaldivar, G.R. No. 158620, 11 October 2006
Facts
• A union member was terminated due to a union security clause. However, due
process for his termination was not followed.
Held
• A CBA provision for a closed-shop is a valid form of union security and it is not a
restriction on the right or freedom of association guaranteed by the Constitution.
However, even if the dismissal of an employee is conditioned not on the grounds for
termination under the Labor Code, but pursuant to the provisions of a CBA, it still is
necessary to observe substantive due process in order to validate the dismissal.
S M I L E N O T E S ☺ | 82
144 BPI v. BPI Employees Union –Davao Chapter, Federation of Unions in BPI Unibank, G.R. No.
164301, August 10, 2010 & October 19, 2011
Facts
• Two banks merged into one. The other bank had a union security clause in their CBA.
As such, it is argued that the absorbed employees should join the union pursuant to
the union security clause.
Held
• General Rule
o The rule is that unless expressly assumed, labor contracts such as
employment contracts and collective bargaining agreements are not
enforceable against a transferee of an enterprise, labor contracts being in
personam, thus binding only between the parties.
• Exception
o Even if it is so, it does not follow that the absorbed employees should not
be subject to the terms and conditions of employment obtaining in the
surviving corporation.
o In voluntary mergers, absorption of the dissolved corporation’s employees
or the recognition of the absorbed employees’ service with their previous
employer may be demanded from the surviving corporation if required by
provision of law or contract.
o The effect or consequence the merger should be limited to what they
actually agreed to—the effect should not be stretched so far as to exempt
the absorbed employees from the existing CBA terms, company policies
and rules which apply to employees similarly situated.
• All employees in the bargaining unit covered by a Union Shop Clause in their CBA
with management are subject to its terms. However, under law and jurisprudence,
the following kinds of employees are exempted from its coverage, namely:
1. employees who at the time the union shop agreement takes effect are
bona fide members of a religious organization which prohibits its members
from joining labor unions on religious grounds;
2. employees already in the service and already members of a union other
than the majority at the time the union shop agreement took effect;
3. confidential employees who are excluded from the rank and file bargaining
unit;
4. and employees excluded from the union shop by express terms of the
agreement.
 LABOR RELATIONS
b. Collection of agency fees
• Employees of an appropriate bargaining unit who are not members of the recognized
collective bargaining agent may be assessed a reasonable fee equivalent to the dues
and other fees paid by members of the recognized collective bargaining agent, if such
non- union members accept the benefits under the collective bargaining agreement:
Provided, That the individual authorization required shall not apply to the non-
members of the recognized collective bargaining agent.273
145 Del Pilar Academy et al., v. Del Pilar Academy Employees Union, G.R. No. 170112, April 30,
2008
Facts
• The question is whether the Union is entitled to collect agency fees from non-union
members.
Held
• The collection of agency fees in an amount equivalent to union dues and fees, from
employees who are not union members, is recognized by Article 248(e) of the Labor
Code, thus: Employees of an appropriate collective bargaining unit who are not
members of the recognized collective bargaining agent may be assessed reasonable
fees equivalent to the dues and other fees paid by the recognized collective
bargaining agent, if such non-union members accept the benefits under the
collective bargaining agreement. Provided, That the individual authorization
required under Article 241, paragraph (o) of this Code shall not apply to the non-
members of recognized collective bargaining agent.
6. Retaliation: Testimony Against Employer/Indirect discrimination
• It shall be unlawful for an employer to dismiss, discharge or otherwise prejudice or
discriminate against an employee for having given or being about to give
testimony.274
146 H.G. Henares & Sons v. National Labor Union, G.R. No. 17535, December 28, 1961
Facts
• There is reason to believe that an employee was dismissed from work because
testifying unfavorably against the company in another unfair labor practice case then
pending.
Held
• It shall be unlawful for an employer to dismiss, discharge or otherwise prejudice or
discriminate against an employee for having given or being about to give testimony.
273
LC, Art. 259(e)
274
LC, Art. 259(f)
S M I L E N O T E S ☺ | 83
147 Mabeza v. NLRC, G.R. No. 118506, April 18, 1997
Facts
• The company was subjected to an inspection which produced adverse results. In an
effort to refute such findings, employees were asked by the management to sign an
instrument attesting to the company’s compliance with minimum wage and other
labor standard provisions of law.
Held
• The act of compelling employees to sign an instrument indicating that the employer
observed labor standards provisions of law when he might have not, together with
the act of terminating or coercing those who refuse to cooperate with the
employer’s scheme, constitutes unfair labor practice.
148 Itogon-Suyoc Mines, Inc. v. Baldo, G.R. No. 17739, December 24, 1964.
Facts
• Employees were dismissed because of their membership with the union and for
having testified against the company in a certification election case.
Held
• It shall be unlawful for an employer to dismiss, discharge or otherwise prejudice or
discriminate against an employee for having given or being about to give testimony.
7. Illegal Exaction Featherbedding
• It shall be unfair labor practice for a labor organization, its officers, agents or
representatives to cause or attempt to cause an employer to pay or deliver or agree
to pay or deliver any money or other things of value, in the nature of an exaction, for
services which are not performed or not to be performed, including the demand for
fee for union negotiations.275
8. Management Prerogative and Unfair Labor Practices
149 Shell Oil Workers Union v. Shell Co. of the Phils. Ltd., 39 SCRA 276 (1971)
Facts
• The company wanted to dissolve its security guard section even though its existence
was assured by the CBA.
Held
• What was stipulated in an existing collective bargaining contract certainly precluded
the company from carrying out what otherwise would have been within its
prerogative if to do so would be violative thereof.
275
LC, Art. 260(d)
 LABOR RELATIONS
150 San Miguel Corp. Employees Union v. Bersamira, 186 SCRA 496 (1990). SUPRA
Facts
• The company laid off contractual workers of Lipercon and D’Rite who wanted to join
a union.
Held
• The Court recognizes the proprietary right of the company to exercise an inherent
management prerogative and its best business judgment to determine whether it
should contract out the performance of some of its work to independent
contractors. However, the rights of all workers to self-organization, collective
bargaining and negotiations, and peaceful concerted activities, including the right to
strike in accordance with law equally call for recognition and protection. Those
contending interests must be placed in proper perspective and equilibrium.
C. Acts Violative of Right to Collective Bargaining
1. Violation of Duty to Bargain
Unfair Labor Practices of Labor
Unfair Labor Practices of Employers276
Organizations277
To violate the duty, or refuse to bargain
To violate the duty to bargain collectively. collectively with the employer, provided it
is the representative of the employees.
• In the absence of an agreement or other voluntary arrangement providing for a more
expeditious manner of collective bargaining, it shall be the duty of employer and the
representatives of the employees to bargain collectively in accordance with the
provisions of the Labor Code. 278
• The duty to bargain collectively means the performance of a mutual obligation to
meet and convene promptly and expeditiously in good faith for the purpose of
negotiating an agreement with respect to wages, hours of work and all other terms
and conditions of employment including proposals for adjusting any grievances or
questions arising under such agreement and executing a contract incorporating such
agreements if requested by either party but such duty does not compel any party to
agree to a proposal or to make any concession.279
• When there is a collective bargaining agreement, the duty to bargain collectively
shall also mean that neither party shall terminate nor modify such agreement during
its lifetime.280
o However, either party can serve a written notice to terminate or modify
the agreement at least 60 days prior to its expiration date. It shall be the
276
LC, Arts. 259
277
LC, Art. 260
278
LC, Art. 262
S M I L E N O T E S ☺ | 84
duty of both parties to keep the status quo and to continue in full force
and effect the terms and conditions of the existing agreement during the
60-day period and/or until a new agreement is reached by the parties.
151 Shell Oil Workers Union v. Shell Co. of the Phils. Ltd., 39 SCRA 276 (1971). SUPRA
Facts
• The company wanted to dissolve its security guard section even though its existence
was assured by the CBA.
Held
• The company, in failing to manifest fealty to what was stipulated in an existing
collective bargaining contract, was guilty of an unfair labor practice.
152 General Milling Corp. v. CA, G.R. 146728, February 11, 2004
Facts
• The company had received collective and individual letters from workers who stated
that they had withdrawn from their union membership. Believing that the union no
longer had standing to negotiate a CBA, the company did not send any counter-
proposal.
Held
• The law mandates that the representation provision of a CBA should last for five
years. The relation between labor and management should be undisturbed until the
last 60 days of the fifth year. Hence, it is indisputable that when the union requested
for a renegotiation, it was still the certified collective bargaining agent of the
workers.
• Where the employer did not even bother to submit an answer to the bargaining
proposals of the union, there is a clear evasion of the duty to bargain collectively.
153 Central Azucarera De Bais Employees Union-NFL v. Central Azucarera De Bais, Inc., G.R.
No. 186605, November 17, 2010. SUPRA
Facts
• Management believed that the union was no longer the representative of the
workers. As such, it refused to negotiate with it and instead, negotiated with a newly
founded union.
Held
• Unlike in General Milling Corp. v CA, the Court here found that the company believed
that the union was no longer the representative of the workers. It just wanted to
foster industrial peace by bowing to the wishes of the overwhelming majority of its
rank and file workers and by negotiating and concluding in good faith a CBA with the
279
LC, Art. 263
280
LC, Art. 264
 LABOR RELATIONS S M I L E N O T E S ☺ | 85

new union. Such actions of CAB are nowhere tantamount to anti-unionism, the evil 2. Negotiation or Attorney’s Fees
sought to be punished in cases of unfair labor practices.
Unfair Labor Practices of Labor
Unfair Labor Practices of Employers281
154 St. John Colleges, Inc. v. St. John Academy Faculty and Employees Union, G.R. No. 167892, Organizations282
October 27, 2006 To pay negotiation or attorney's fees to the To ask for or accept negotiation or
Facts union or its officers or agents as part of the attorney's fees from employers as part of
settlement of any issue in collective the settlement of any issue in collective
• The Union alleged that the closure of the high school while a bargaining deadlock
bargaining or any other dispute; or bargaining or any other dispute; or
was pending was done in bad faith to get rid of the Union and render useless any
decision on the CBA deadlock.
3. Gross Violation of Collective Bargaining Agreement
Held
• The employer cannot unilaterally close its establishment on the pretext that the
Unfair Labor Practices of Labor
demands of its employees are excessive. Neither party is obliged to give-in to the Unfair Labor Practices of Employers283
Organizations284
other’s excessive or unreasonable demands during collective bargaining. The
To violate a collective bargaining
remedy in such case is to refer the dispute to the proper tribunal for resolution. To violate a collective bargaining agreement.
agreement.

155 Union of Fillipro Employees – DFA v. Nestle Phil. Inc., G.R. No. 158930, March 3, 2008.
SUPRA
Facts
• Nestle was of the view that unilateral grants, one-time company grants, company
initiated policies (Retirement Plan) are not proper subjects of CBA negotiations and
shall be excluded. The union held a contrary view and filed a case for unfair labor
practice against Nestle.
Held
• The Labor Code imposed as a mutual obligation on both parties the duty to bargain
collectively.
• The characterization by an employer on the Retirement Plan cannot operate to
divest the employees of their vested and demandable right over existing benefits
voluntarily granted by their employer. However, the consensual nature of the
Retirement Plan neither gives the union members the unfettered right nor the
unbridled prerogative to demand more than what the company can viably give.
• The Voluntary Arbitrator or panel of Voluntary Arbitrators shall have original and
exclusive jurisdiction to hear and decide all unresolved grievances arising from the
interpretation or implementation of the Collective Bargaining Agreement and those
arising from the interpretation or enforcement of company personnel policies
referred to in the immediately preceding article.285
• Violations of a Collective Bargaining Agreement, except those which are gross in
character, shall no longer be treated as unfair labor practice and shall be resolved as
grievances under the Collective Bargaining Agreement. Gross violations of Collective
Bargaining Agreement shall mean flagrant and/or malicious refusal to comply with
the economic provisions of such agreement.286
• The Commission, its Regional Offices and the Regional Directors of the Department
of Labor and Employment shall not entertain disputes, grievances or matters under
the exclusive and original jurisdiction of the Voluntary Arbitrator or panel of
Voluntary Arbitrators and shall immediately dispose and refer the same to the
Grievance Machinery or Voluntary Arbitration provided in the Collective Bargaining
Agreement.287

281 285
LC, Arts. 259 LC, Art. 274
286
282
LC, Art. 260 Id.
287
283
LC, Arts. 259 Id.
284
LC, Art. 260
 LABOR RELATIONS
156 Arellano University Employees and Workers Union v. CA, G.R. No. 139940, September 19,
2006
Facts
• The University disregarded the Union officer’s request to deduct penalties from its
members who were absent and without justifiable reasons during union meetings.
Held
• To constitute unfair labor practice violations of the CBA must be gross. Gross
violation of the CBA, under Article 261 of the Labor Code, means flagrant and/or
malicious refusal to comply with the economic provisions thereof.
• The refusal of the University was justified because the CBA required as condition for
valid check-off prior submission to the management of individual authorization.
157 San Miguel Foods, Inc. v. SMC Employees Union-PTGWO, 535 SCRA 133 (2007)
Facts
• The Union charges the company to have violated the grievance machinery provision
in the CBA.
Held
• The grievance machinery provision in the CBA is not an economic provision, hence,
there was no unfair labor practice.
158 Employees Union of Bayer Phils. v. Bayer Philippines Inc., G.R. No. 162943, December 6,
2010
Facts
• While an existing CBA was in force, management entered into a new CBA with
another union.
Held
• When a valid and binding CBA had been entered into by the workers and the
employer, the latter is behooved to observe the terms and conditions thereof
bearing on union dues and representation, and if the employer grossly violates its
CBA with the duly recognized union, the former may be held administratively and
criminally liable for unfair labor practice.
S M I L E N O T E S ☺ | 86
D. Motive, Conduct and Proof
1. Employer Motive and Proof
159 Phil. Metal Foundries, Inc. v. CIR, 90 SCRA 135 (1979)
Facts
• It is admitted by the company that it accepted the invitation of an employee for a
grievance conference. Yet, two hours after it accepted the letter of invitation, it
dismissed such employee without prior notice and/or investigation.
Held
• Such dismissal is undoubtedly an unfair labor practice committed by the company.
Although a man’s motive, like his intent, is “as much a fact as the state of his
digestion”, evidence of such fact may consist both direct testimony by one whose
motive is in question and of inferences of probability drawn from the totality of other
facts.
• A no strike clause prohibition in a Collective Bargaining Agreement is applicable only
to economic strikes.
2. Totality of Evidence
160 Royal Undergarment Corporation of the Phil. v. CIR, 186 SCRA 278 (1990)
Facts
• When an employee joined a union, his employment was terminated.
Held
• It has previously been indicated that an employer may treat freely with an employee
and is not obliged to support his actions with a reason or purpose. However, where
the attendant circumstances, the history of the employer’s past conduct and like
considerations, coupled with an intimate connection between the employer’s action
and the union affiliations or activities of the particular employee or employees taken
as a whole raise a suspicion as to the motivation for the employer’s action, the failure
of the employer to ascribe a valid reason therefor may justify an inference that his
unexplained conduct in respect of the particular employee or employees was
inspired by the latter’s union membership or activities
 LABOR RELATIONS S M I L E N O T E S ☺ | 87

E. Enforcement, Remedies and Sanctions 2. Parties Liable for Acts

1. Parties Against Whom ULP Committed a. Employer

• Unfair labor practices are not only violations of the civil rights of both labor and • Only the officers and agents of corporations, associations or partnerships who have
management but are also criminal offenses against the State.288 actually participated in, authorized or ratified unfair labor practices shall be held
criminally liable.294
Unfair Labor Practices of Labor
Unfair Labor Practices of Employers289
Organizations290 b. Labor Organization
Only the officers and agents of corporations, Only the officers, members of governing • Only the officers, members of governing boards, representatives or agents or
associations or partnerships who have boards, representatives or agents or members of labor associations or organizations who have actually participated in,
actually participated in, authorized or ratified members of labor associations or authorized or ratified unfair labor practices shall be held criminally liable. 295
unfair labor practices shall be held criminally organizations who have actually
liable. participated in, authorized or ratified
161 National Labor Union v. CIR, 116 SCRA 417 (1982)
unfair labor practices shall be held
criminally liable. Facts
• There was conspiracy between the old owner and the new owner to boot out
• Employer291 members of the union for union activity.
o Includes any person acting in the interest of an employer, directly or Held
indirectly. The term shall not include any labor organization or any of its • Both the new and old employers are jointly and severally liable to the employees.
officers or agents except when acting as employer.
• Employee292 3. Prosecution and Prescriptive Period
o Includes any person in the employ of an employer. The term shall not be
limited to the employees of a particular employer, unless the Labor Code a. Civil Aspect
so explicitly states. It shall include any individual whose work has ceased • Money Claims 296
as a result of or in connection with any current labor dispute or because of o All money claims arising from employer-employee relations accruing shall
any unfair labor practice if he has not obtained any other substantially be filed within 3 years from the time the cause of action accrued,
equivalent and regular employment. otherwise they shall be forever barred.
• Labor organization293
o Means any union or association of employees which exists in whole or in b. Criminal Aspect
part for the purpose of collective bargaining or of dealing with employers • Only the officers and agents of corporations, associations or partnerships who have
concerning terms and conditions of employment. actually participated in, authorized or ratified unfair labor practices shall be held
criminally liable.297
• Offenses298
o Offenses penalized under this Code and the rules and regulations issued
pursuant thereto shall prescribe in three (3) years.

288 294
LC, Art. 258 LC, Arts. 259
289
LC, Arts. 259 295
LC, Art. 260
290 296
LC, Art. 260 LC, Art. 306
291 297
LC, Art. 219(e) LC, Arts. 259
292
LC, Art. 219(f) 298
LC, Art. 305
293
LC, Art. 219(g)
 LABOR RELATIONS S M I L E N O T E S ☺ | 88

o All unfair labor practice shall be filed with the appropriate agency within 1 o Any provision of law to the contrary notwithstanding, any criminal offense
year from accrual of such unfair labor practice; otherwise, they shall be punished in this Code shall be under the concurrent jurisdiction of the
forever barred. Municipal or City Courts and the Courts of First Instance.
• Who are Liable When Committed by Other Than Natural Person300
4. Compromise o If the offense is committed by a corporation, trust, firm, partnership,
association or any other entity, the penalty shall be imposed upon the
162 CCLC E.G. Gochangco Workers Union v. NLRC; 161 SCRA 656 (1988) guilty officer or officers of such corporation, trust, firm, partnership,
Facts association or entity.
• Employees dismissed through unfair labor practices were made to sign waivers of
rights and interests.
Held
• Unfair labor practice cases are not, in view of the public interest involved, subject to
compromises.

5. Remedies and Sanctions

a. Civil Remedies

163 Quadra v. CA, G.R. No. 147593, July 31, 2006

Facts
• The question is whether an employee dismissed in bad faith is entitled to moral
damages.
Held
• A dismissed employee is entitled to moral damages when the dismissal is attended
by bad faith or constitutes an act oppressive to labor or is done in a manner contrary
to good morals, good customs or public policy. Exemplary damages may be awarded
if the dismissal is effected in a wanton, oppressive or malevolent manner.

b. Penal Remedies
• Penalties 299
o Except as otherwise provided in the Labor Code, or unless the acts
complained of hinge on a question of interpretation or implementation of
ambiguous provisions of an existing collective bargaining agreement, any
violation of the provisions of the Labor Code declared to be unlawful or
penal in nature shall be punished with a fine of not less than P1 ,000.00
nor more than P10,000.00, or imprisonment of not less than three months
nor more than three years, or both such fine and imprisonment at the
discretion of the court.
o In addition to such penalty, any alien found guilty shall be summarily
deported upon completion of service of sentence.

299 300
LC, Art. 303 LC, Art. 304