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(a) To promote and emphasize the primacy of free collective bargaining (d) "Council" means the Tripartite Voluntary Arbitration Advisory Council
and negotiations, including voluntary arbitration, mediation and established under Executive Order No. 126, as amended.
conciliation, as modes of settling labor or industrial disputes;
(e) "Employer" includes any person acting in the interest of an employer,
(b) To promote free trade unionism as an instrument for the enhancement directly or indirectly. The term shall not include any labor organization or
of democracy and the promotion of social justice and development; any of its officers or agents except when acting as employer.
(c) To foster the free and voluntary organization of a strong and united (f) "Employee" includes any person in the employ of an employer. The term
labor movement; shall not be limited to the employees of a particular employer, unless the
Code so explicitly states. It shall include any individual whose work has
(d) To promote the enlightenment of workers concerning their rights and ceased as a result of or in connection with any current labor dispute or
obligations as union members and as employees; because of any unfair labor practice if he has not obtained any other
substantially equivalent and regular employment.
(e) To provide an adequate administrative machinery for the expeditious
settlement of labor or industrial disputes; (g) "Labor organization" means any union or association of employees
which exists in whole or in part for the purpose of collective bargaining or
(f) To ensure a stable but dynamic and just industrial peace; and of dealing with employers concerning terms and conditions of
employment.
(g) To ensure the participation of workers in decision and policy-making
processes affecting their rights, duties and welfare. (h) "Legitimate labor organization" means any labor organization duly
registered with the Department of Labor and Employment, and includes
B. To encourage a truly democratic method of regulating the relations any branch or local thereof.
between the employers and employees by means of agreements freely
entered into through collective bargaining, no court or administrative (i) "Company union" means any labor organization whose formation,
agency or official shall have the power to set or fix wages, rates of pay, function or administration has been assisted by any act defined as unfair
hours of work or other terms and conditions of employment, except as labor practice by this Code.
otherwise provided under this Code. (As amended by Section 3, Republic
Act No. 6715, March 21, 1989). (j) "Bargaining representative" means a legitimate labor organization
whether or not employed by the employer.
ART. 212. Definitions. - (a) "Commission" means the National Labor
Relations Commission or any of its divisions, as the case may be, as (k) "Unfair labor practice" means any unfair labor practice as expressly
provided under this Code. defined by the Code.
(b) "Bureau" means the Bureau of Labor Relations and/or the Labor (l) "Labor dispute" includes any controversy or matter concerning terms
Relations Divisions in the regional offices established under Presidential and conditions of employment or the association or representation of
Decree No. 1, in the Department of Labor. persons in negotiating, fixing, maintaining, changing or arranging the
terms and conditions of employment, regardless of whether the disputants
(c) "Board" means the National Conciliation and Mediation Board stand in the proximate relation of employer and employee.
established under Executive Order No. 126.
(m) "Managerial employee" is one who is vested with the powers or exit from said establishment. (As amended by Section 4, Republic Act No.
prerogatives to lay down and execute management policies and/or to hire, 6715, March 21, 1989).
transfer, suspend, lay-off, recall, discharge, assign or discipline employees.
Supervisory employees are those who, in the interest of the employer,
PRESENT LABOR RELATIONS POLICY
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. All employees not falling within any of the above METHODS OF DISPUTE SETTLEMENT, ARTICLE 211 (a)(b)
definitions are considered rank-and-file employees for purposes of this • To promote and emphasize the primacy of free collective
Book. bargaining and negotiations, including voluntary arbitration,
mediation and conciliation, as modes of settling labor or industrial
(n) "Voluntary Arbitrator" means any person accredited by the Board as disputes
such or any person named or designated in the Collective Bargaining • To promote free trade unionism as an instrument for the
Agreement by the parties to act as their Voluntary Arbitrator, or one enhancement of democracy and the promotion of social justice
chosen with or without the assistance of the National Conciliation and and development
Mediation Board, pursuant to a selection procedure agreed upon in the
Collective Bargaining Agreement, or any official that may be authorized by RATIONALE FOR VOLUNTARY DISPUTE SETTLEMENT
the Secretary of Labor and Employment to act as Voluntary Arbitrator • Labor relations are characterized by its inter-party nature. It is
upon the written request and agreement of the parties to a labor dispute. due to this inter-party nature that voluntary settlement is
preferred.
(o) "Strike" means any temporary stoppage of work by the concerted action • Labor relations encourage a truly democratic method of regulating
of employees as a result of an industrial or labor dispute. the relations between the employers and employees by means of
agreements freely entered into through collective bargaining
(p) "Lockout" means any temporary refusal of an employer to furnish work • Free agreement among the parties is the general rule while
as a result of an industrial or labor dispute. government intervention is the exception.
• Note: there is symmetry in the law with respect to Article 211—
(q) "Internal union dispute" includes all disputes or grievances arising from A(a) with respect to B(b)
any violation of or disagreement over any provision of the constitution and
by laws of a union, including any violation of the rights and conditions of
union membership provided for in this Code.
(1) To promote free trade unionism as an instrument for the maintained that they cannot as they are not under the scope of the
enhancement of democracy and the promotion of social justice Industrial Peace Act. Despite conciliation efforts and advise by
and development the NCMB that they cannot be recognized as the broadcasting
(2) To foster the free and voluntary organization of a strong and company is not included in the Industrial Peace Act, they staged a
united labor movement; strike. This prompted the company to file for damages and
preliminary injunction. Petitioner was subsequently dismissed
WORKER ENLIGHTENMENT, ARTICLES 211 (d), 277 (a), 241 (p) from the company and he alleged that he was illegally dismissed
(1) To promote the enlightenment of workers concerning their rights since prior clearance is needed from the Secretary before the
and obligations as union members and as employees; dismissal of employees or cessation of business.
(2) All unions are authorized to collect reasonable membership fees,
union dues, assessments and fines and other contributions for HELD:
labor education and research, mutual death and hospitalization Technically speaking, no clearance was obtained by private respondent
benefits, welfare fund, strike fund and credit and cooperative from the then Secretary of Labor, the last step towards full compliance
undertakings. with the requirements of law on the matter of dismissal of employees.
(3) It shall be the duty of any labor organization and its officers to However, the rationale behind the clearance requirement was fully met.
inform its members on the provisions of its constitution and by- The Secretary of Labor was apprised of private respondent's intention to
laws, collective bargaining agreement, the prevailing labor terminate the services of petitioner. This in effect is an application for
relations system and all their rights and obligations under existing clearance to dismiss petitioner from employment. The affirmance of the
labor laws. restrictive condition in the dispositive portion of the labor arbiter's decision
in NLRC Case Nos. 0021 and 0285 by the Secretary of Labor and the
For this purpose, registered labor organizations may assess Office of the President of the Philippines, signifies a grant of authority to
reasonable dues to finance labor relations seminars and other dismiss petitioner in case the strike is declared illegal by the Court of First
labor education activities. Instance of Bulacan. Consequently and as correctly stated by the Solicitor
General, private respondent acted in good faith when it terminated the
Any violation of the above rights and conditions of membership employment of petitioner upon a declaration of illegality of the strike by
shall be a ground for cancellation of union registration or the Court of First Instance of Bulacan. Moreover, the then Secretary of
expulsion of officers from office, whichever is appropriate. At least Labor manifested his conformity to the dismissal, not once, but twice. In
thirty percent (30%) of the members of a union or any member or this regard, the mandatory rule on clearance need not be applied.
members specially concerned may report such violation to the
Bureau. The Bureau shall have the power to hear and decide any The strike staged by the union in 1972 was a futile move. The law then
reported violation to mete the appropriate penalty. enforced, Republic Act 875 specifically excluded respondent company
from its coverage. Even if the parties had gone to court to compel
Criminal and civil liabilities arising from violations of above rights recognition, no positive relief could have been obtained since the same was
and conditions of membership shall continue to be under the not sanctioned by law. Because of this, there was no necessity on the part
jurisdiction of ordinary courts. of private respondent to show specific acts of petitioner during the strike to
justify his dismissal.
VICTORIA V. INCIONG (1988)
• Victoria was employed in Far East Broadcasting Company. He This is a matter of responsibility and of answerability. Petitioner as a union
later together with other employees organized an employee’s leader, must see to it that the policies and activities of the union in the
union. They sought recognition from the company but the latter conduct of labor relations are within the precepts of law and any deviation
from the legal boundaries shall be imputable to the leader. He bears the
responsibility of guiding the union along the path of law and to cause the DELTAVENTURES V. CABATO
union to demand what is not legally demandable, would foment anarchy 327 SCRA 521
which is a prelude to chaos. • Respondent-employees filed a case of illegal dismissal against
their employer. The labor arbiter ruled in their favor and ruled for
Petitioner should have known and it was his duty to impart this imputed the payment of backwages and reinstatement. The appeal being
knowledge to the members of the union that employees and laborers in denied, the employees sought the issuance of a writ of execution
non- profit organizations are not covered by the provisions of the Industrial to satisfy the judgment. The labor arbiter duly issued one but
Peace Act and the Court of Industrial Relations [in the case at bar, the seeing that there are not enough assets to satisfy claims, a levy
Court of First Instance] has no jurisdiction to entertain petitions of labor was made on one of the real properties. Before the auction sale
unions or organizations of said non-profit organizations for certification as could happen, petitioner files a third-party complaint as it was
the exclusive bargaining representatives of said employees and laborers. allegedly the owner of the property. The auction sale was
thereafter suspended. The petitioner then files a complaint with
MACHINERY DISPUTE SETTLEMENT, ARTICLE 211 (e) the RTC, making the same allegations in its third-party claim,
(a) To provide an adequate administrative machinery for the praying as well for injunction and damages. The employees
expeditious settlement of labor or industrial disputes; sought the dismissal of the civil case and the court then ruled in
their favor, ruling that the petitioner cannot maintain the two
ST. MARTIN’S FUNERAL HOMES V. NLRC claims both at the same time.
295 SCRA 494
• Aricayos filed against petitioner a case for illegal dismissal. He HELD:
alleged that he was employed by the company as an operations Petitioner failed to realize that by filing its third-party claim with the
manager but he wasn’t included in the payroll nor was there any deputy sheriff, it submitted itself to the jurisdiction of the Commission
contract of employment. The company on the other hand, alleged acting through the Labor Arbiter. It failed to perceive the fact that what it
that he was merely accommodated by the previous owner of the is really controverting is the decision of the Labor arbiter and not the act of
company as he was in dire need of financial assistance but when the deputy sheriff in executing said order issued as a consequence of said
records were checked, irregularities in accounts were discovered decision rendered.
and Aricayos was duly removed for misappropriating funds. The
labor arbiter ruled that there wasn’t any employer-employee Jurisdiction once acquired is not lost upon the instance of the parties but
relationship. The NLRC on appeal remanded to the arbiter the continues until the case is terminated. 23 Whatever irregularities attended
case for further proceedings. Having its motion for the issuance and execution of the alias writ of execution should be referred
reconsideration denied, Aricayos filed a petition for certiorari to to the same administrative tribunal which rendered the decision. 24 This is
the SC. because any court which issued a writ of execution has the inherent power,
for the advancement of justice, to correct errors of its ministerial officers
HELD: and to control its own processes.
All references in the amended Section 9 of B.P. No. 129 to supposed
appeals from the NLRC to the Supreme Court are interpreted and hereby The broad powers granted to the Labor Arbiter and to the National Labor
declared to mean and refer to petitions for certiorari under Rule 65. Relations Commission by Articles 217, 218 and 224 of the Labor Code can
Consequently, all such petitions should hence forth be initially filed in the only be interpreted as vesting in them jurisdiction over incidents arising
Court of Appeals in strict observance of the doctrine on the hierarchy of from, in connection with or relating to labor disputes, as the controversy
courts as the appropriate forum for the relief desired. under consideration, to the exclusion of the regular courts.
compulsory arbitration. Such assumption or certification • Tripartism in labor relations is hereby declared a State policy.
shall have the effect of automatically enjoining the Towards this end, workers and employers shall, as far as
intended or impending strike or lockout as specified in the practicable, be represented in decision and policy-making bodies
assumption or certification order. If one has already taken of the government.
place at the time of assumption or certification, all • The Secretary of Labor and Employment or his duly authorized
striking or locked out employees shall immediately return- representatives may, from time to time, call a national, regional,
to-work and the employer shall immediately resume or industrial tripartite conference of representatives of
operations and readmit all workers under the same terms government, workers and employers for the consideration and
and conditions prevailing before the strike or lockout. The adoption of voluntary codes of principles designed to promote
Secretary of Labor and Employment or the Commission industrial peace based on social justice or to align labor
may seek the assistance of law enforcement agencies to movement relations with established priorities in economic and
ensure compliance with this provision as well as with such social development. In calling such conference, the Secretary of
orders as he may issue to enforce the same. Labor and Employment may consult with accredited
o To enjoin or restrain any actual or threatened commission of representatives of workers and employers.
any or all prohibited or unlawful acts or to require the
performance of a particular act in any labor dispute which, if RATIONALE BEHIND TRIPARTISM AND WORKER PARTICIPATION
not restrained or performed forthwith, may cause grave or • The belief that a party who participates in the culmination of a
irreparable damage to any party or render ineffectual any policy has greater assurance of effectiveness of the policy and its
decision in favor of such party: Provided, That no temporary success
or permanent injunction in any case involving or growing • However, if we look at the law, a fence was built around the law—
out of a labor dispute as defined in this Code shall be in matters that affects of rights and welfare—but can the whole
issued except after hearing the testimony of witnesses, gamut of rights and welfare be catalogued?
with opportunity for cross-examination, in support of the • This fence prompts some questions like—can an employee veto
allegations of a complaint made under oath, and any policy drafted by the company or management? In PAL v.
testimony in opposition thereto, if offered, and only after a NLRC, it was held that the right exists but the employee doesn’t
finding of fact by the Commission, to the effect: have the veto power.
• It just means that the right is qualified and is not absolute. The
POINTERS FOR LIMITED INJUNCTION right only exists for those affecting their rights and welfare.
(a) If there is a labor dispute Nonetheless, they don’t have the power to veto.
(b) By the NLRC
(c) Following certain requirements
Article 13, Section 3. ART. 244. Right of employees in the public service. - Employees of
xxx It shall guarantee the rights of all workers to self-organization, government corporations established under the Corporation Code shall
collective bargaining and negotiations, and peaceful concerted activities, have the right to organize and to bargain collectively with their respective
including the right to strike in accordance with law. xxx employers. All other employees in the civil service shall have the right to
form associations for purposes not contrary to law. (As amended by
ART. 243. Coverage and employees’ right to self-organization. - All Executive Order No. 111, December 24, 1986).
persons employed in commercial, industrial and agricultural enterprises
and in religious, charitable, medical, or educational institutions, whether ART. 245. Ineligibility of managerial employees to join any labor
operating for profit or not, shall have the right to self-organization and to organization; right of supervisory employees. - Managerial employees
form, join, or assist labor organizations of their own choosing for purposes are not eligible to join, assist or form any labor organization. Supervisory
of collective bargaining. Ambulant, intermittent and itinerant workers, self- employees shall not be eligible for membership in a labor organization of
employed people, rural workers and those without any definite employers the rank-and-file employees but may join, assist or form separate labor
may form labor organizations for their mutual aid and protection. (As organizations of their own. (As amended by Section 18, Republic Act No.
amended by Batas Pambansa Bilang 70, May 1, 1980). 6715, March 21, 1989).
not, any employee shall be considered as such, beginning on his first day
ART. 245-A. Effect of inclusion as members of employees outside of service, for purposes of membership in a labor union.
the bargaining unit. The inclusion as union members of employees
outside the bargaining unit shall not be a ground for the cancellation of the Corollary to this right is the prerogative not to join, affiliate with or assist a
registration of the union. Said employees are automatically deemed labor union. Therefore, to become a union member, an employee
removed from the list of membership of said union. must, as a rule, not only signify the intent to become one, but also
take some positive steps to realize that intent. The procedure for
ART. 246. Non-abridgment of right to self-organization. - It shall be union membership is usually embodied in the union's constitution and
unlawful for any person to restrain, coerce, discriminate against or unduly bylaws. An employee who becomes a union member acquires the rights
interfere with employees and workers in their exercise of the right to self- and the concomitant obligations that go with this new status and becomes
organization. Such right shall include the right to form, join, or assist labor bound by the union's rules and regulations.
organizations for the purpose of collective bargaining through
representatives of their own choosing and to engage in lawful concerted The constitutional right to self-organization is better understood in the
activities for the same purpose for their mutual aid and protection, subject context of ILO Convention No. 87 (Freedom of Association and Protection
to the provisions of Article 264 of this Code. (As amended by Batas of Right to Organize), to which the Philippines is signatory. Article 3 of the
Pambansa Bilang 70, May 1, 1980). Convention provides that workers' organizations shall have the right to
draw up their constitution and rules and to elect their representatives in
UST FACULTY UNION V. BITONIO full freedom, free from any interference from public authorities. The
318 SCRA 186 freedom conferred by the provision is expansive; the responsibility
• Private respondents were officers of the USTFU. The recognized imposed on union members to respect the constitution and rules they
union had a CBA with the school. The secretary-general on a themselves draw up equally so. The point to be stressed is that the
relevant date announced that there would be a general assembly union's CBL is the fundamental law that governs the relationship
for the next election of union officers. The petitioners appealed between and among the members of the union. It is where the
the same with the med-arbiter, alleging that the same was not in rights, duties and obligations, powers, functions and authority of
accordance with the union’s constitution and by-laws. The med- the officers as well as the members are defined. It is the organic
arbiter issued a temporary restraining order, even so, the general law that determines the validity of acts done by any officer or
assembly still proceeded as scheduled. Members and non- member of the union. Without respect for the CBL, a union as a
members alike attended the same and petitioners were elected as democratic institution degenerates into nothing more than a group
officers. The private respondents then prayed for the nullification of individuals governed by mob rule.
of elections, being a violation of the temporary restraining order.
They likewise filed a motion to order petitioners to vacate the NATIONAL UNION OF BANK EMPLOYEES V. MINISTER OF LABOR
union office. The med-arbiter ruled in their favor and this was 110 SCRA 274
affirmed by the director. • Exclusion of certain rank-and-file employees from the collective
bargaining unit. Allegedly, this is in violation of the right to self-
HELD: organization.
Self-organization is a fundamental right guaranteed by the Philippine
Constitution and the Labor Code. Employees have the right to form, join or HELD:
assist labor organizations for the purpose of collective bargaining or for The question therefore of excluding certain rank and file employees for
their mutual aid and protection. Whether employed for a definite period or being allegedly confidential, managerial or technical does not simply
involve a definition of the bargaining unit but rather raises the fundamental
issue of coverage under or eligibility for the exercise of the workers' rights Furthermore, to uphold the order of exclusion would be to allow the
to self-organization and collective bargaining. On this score, the law on emasculation of the workers' right to self-organization and to collective
coverage and exclusion on the matter should by now be very clear. Article bargaining, statutory rights which have received constitutional recognition
244 of the Labor Code states that all persons employed in commercial, when they were enshrined in the 1973 Constitution. Indeed, the further
industrial and agricultural enterprises, including religious, charitable, rulings that 'other non-confidential employees included in the bank's list of
medical or educational institutions operating for profit shall have the right proposed exclusion be allowed to vote but the votes should be segregated
to self-organization and to form, join, or assist labor organizations for as challenged and that in case of doubt as to whether or not the position
purposes of collective bargaining. Articles 245 and 246 (ibid) provide that held by an employee is confidential in nature, the employee should be
security guards and managerial employees are not eligible to form, assist allowed to vote but his vote should be segregated as challenged' both
or join any labor organization. As defined by the Code, a managerial complete the said order's self-nullifying effects.
employee is one who is vested with powers or prerogatives to lay down and
execute management policies and/or to hire, transfer, suspend, lay-off, At the most and indeed as a policy, exclusion of confidential employees
recall, discharge, assign or discipline employees, or to effectively from the bargaining unit is a matter for negotiation and agreement of the
recommend such managerial actions. All employees not falling within this parties. Thus, the parties may agree in the CBA, to exclude certain highly
definition are considered rank and file employees for purposes of self- confidential positions from the bargaining unit. Absent such agreement,
organization and collective bargaining. coverage must be observed. In any event, any negotiation and agreement
can come after the representation issue is resolved and this is just the
It is in the light of the foregoing provisions of law that the challenged situation in the instant case.
order, in so far as it excludes all managerial and supervisory employees,
secretaries of bank officials, credit investigators, telephone operators, loan Universal Declaration of Human Rights, article 2. Everyone is entitled
security custodians, employees in the accounting, auditing, legal, trust and to all the rights and freedoms set forth in this Declaration, without
personnel departments respectively, should be modified for being either distinction of any kind, such as race, colour, sex, language, religion,
superfluous, discriminatory or simply contrary to law. The express political or other opinion, national or social origin, property, birth or other
exclusion of managerial employees in the Order is superfluous for the status. Furthermore, no distinction shall be made on the basis of the
same is already provided for by law and is presumed when the bargaining political, jurisdictional or international status of the country or territory to
unit was defined as comprising all the regular rank and file employees of which a person belongs, whether it be independent, trust, non-self-
the bank. It is also anomalous and discriminatory when it excluded governing or under any other limitation of sovereignty.
employees of the personnel department but included specific individuals
like Manuel Simibcay Primi Zamora and Carmelita Sy. Exclusion as Article 23. (1) Everyone has the right to work, to free choice of
managerial employee is not based on the personality of the employment, to just and favourable conditions of work and to protection
occupant but rather on the nature and function of the position. The against unemployment. (2) Everyone, without any discrimination, has the
exclusion of the other positions is likewise contrary to law, there being no right to equal pay for equal work. (3) Everyone who works has the right to
clear showing that they are managerial employees. The mere fact of being just and favourable remuneration ensuring for himself and his family an
a supervisor or a confidential employee does not exclude him from existence worthy of human dignity, and supplemented, if necessary, by
coverage. He must strictly come within the category of a managerial other means of social protection. (4) Everyone has the right to form and to
employee as defined by the Code. The Constitution assures to all workers join trade unions for the protection of his interests.
such rights to self-organization and collective bargaining. Exclusions, being
the exception and being in derogation of such constitutional mandate, International Covenant on Economic, Social and Cultural Rights,
should be construed in strictissimi juris. article 2. 1. 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 Association and Protection of the Right to Organize to take legislative
resources, with a view to achieving progressively the full realization of the measures which would prejudice, or apply the law in such a manner as
rights recognized in the present Covenant by all appropriate means, would prejudice, the guarantees provided for in that Convention.
including particularly the adoption of legislative measures.
International Covenant on Civil and Political Rights, article 22.
2. The States Parties to the present Covenant undertake to guarantee that 1. Everyone shall have the right to freedom of association with others,
the rights enunciated in the present Covenant will be exercised without including the right to form and join trade unions for the protection of his
discrimination of any kind as to race, colour, sex, language, religion, interests.
political or other opinion, national or social origin, property, birth or other 2. No restrictions may be placed on the exercise of this right other than
status. those which are prescribed by law and which are necessary in a
democratic society in the interests of national security or public safety,
3. Developing countries, with due regard to human rights and their public order (ordre public), the protection of public health or morals or the
national economy, may determine to what extent they would guarantee the protection of the rights and freedoms of others. This article shall not
economic rights recognized in the present Covenant to non-nationals. prevent the imposition of lawful restrictions on members of the armed
forces and of the police in their exercise of this right.
Article 8. 3. Nothing in this article shall authorize States Parties to the International
1. The States Parties to the present Covenant undertake to ensure: Labour Organisation Convention of 1948 concerning Freedom of
(a) The right of everyone to form trade unions and join the trade union of Association and Protection of the Right to Organize to take legislative
his choice, subject only to the rules of the organization concerned, for the measures which would prejudice, or to apply the law in such a manner as
promotion and protection of his economic and social interests. No to prejudice, the guarantees provided for in that Convention.
restrictions may be placed on the exercise of this right other than those
prescribed by law and which are necessary in a democratic society in the ILO Convention No. 87: Freedom of Association and Protection of
interests of national security or public order or for the protection of the the Right to Organization.
rights and freedoms of others;
(b) The right of trade unions to establish national federations or PART I. FREEDOM OF ASSOCIATION
confederations and the right of the latter to form or join international
trade-union organizations; Article 1
(c) The right of trade unions to function freely subject to no limitations Each Member of the International Labour Organisation for which this
other than those prescribed by law and which are necessary in a Convention is in force undertakes to give effect to the following provisions.
democratic society in the interests of national security or public order or
for the protection of the rights and freedoms of others; Article 2
(d) The right to strike, provided that it is exercised in conformity with the Workers and employers, without distinction whatsoever, shall have the
laws of the particular country. right to establish and, subject only to the rules of the organisation
concerned, to join organisations of their own choosing without previous
2. This article shall not prevent the imposition of lawful restrictions on the authorisation.
exercise of these rights by members of the armed forces or of the police or
of the administration of the State. Article 3
1. Workers' and employers' organisations shall have the right to draw up
3. Nothing in this article shall authorize States Parties to the International their constitutions and rules, to elect their representatives in full freedom,
Labour Organisation Convention of 1948 concerning Freedom of to organise their administration and activities and to formulate their
programmes. this Convention by any Member shall not be deemed to affect any existing
law, award, custom or agreement in virtue of which members of the armed
2. The public authorities shall refrain from any interference which would forces or the police enjoy any right guaranteed by this Convention.
restrict this right or impede the lawful exercise thereof.
Article 10
Article 4 In this Convention the term organisation means any organisation of
Workers' and employers' organisations shall not be liable to be dissolved or workers or of employers for furthering and defending the interests of
suspended by administrative authority. workers or of employers.
Article 7 Article 12
The acquisition of legal personality by workers' and employers' 1.In respect of the territories referred to in Article 35 of the Constitution of
organisations, federations and confederations shall not be made subject to the International Labour Organisation as amended by the Constitution of
conditions of such a character as to restrict the application of the the International Labour Organisation Instrument of Amendment 1946,
provisions of Articles 2, 3 and 4 hereof. other than the territories referred to in paragraphs 4 and 5 of the said
article as so amended, each Member of the Organisation which ratifies this
Article 8 Convention shall communicate to the Director-General of the International
1. In exercising the rights provided for in this Convention workers and Labour Office with or as soon as possible after its ratification a declaration
employers and their respective organisations, like other persons or stating:
organised collectivities, shall respect the law of the land. a) the territories in respect of which it undertakes that the provisions of the
Convention shall be applied without modification;
2. The law of the land shall not be such as to impair, nor shall it be so b) the territories in respect of which it undertakes that the provisions of the
applied as to impair, the guarantees provided for in this Convention. Convention shall be applied subject to modifications, together with details
of the said modifications;
Article 9 c) the territories in respect of which the Convention is inapplicable and in
1. The extent to which the guarantees provided for in this Convention shall such cases the grounds on which it is inapplicable;
apply to the armed forces and the police shall be determined by national d) the territories in respect of which it reserves its decision.
laws or regulations.
2. The undertakings referred to in subparagraphs (a) and (b) of paragraph
2. In accordance with the principle set forth in paragraph 8 of Article 19 of 1 of this Article shall be deemed to be an integral part of the ratification
the Constitution of the International Labour Organisation the ratification of and shall have the force of ratification.
Measures appropriate to national conditions shall be taken, where 1. Declarations communicated to the Director-General of the International
necessary, to encourage and promote the full development and utilisation Labour Office in accordance with paragraph 2 of Article 35 of the
of machinery for voluntary negotiation between employers or employers' Constitution of the International Labour Organisation shall indicate --
organisations and workers' organisations, with a view to the regulation of
terms and conditions of employment by means of collective agreements. a) the territories in respect of which the Member concerned undertakes
that the provisions of the Convention shall be applied without modification;
Article 5
1. The extent to which the guarantees provided for in this Convention shall b) the territories in respect of which it undertakes that the provisions of the
apply to the armed forces and the police shall be determined by national Convention shall be applied subject to modifications, together with details
laws or regulations. of the said modifications;
2. In accordance with the principle set forth in paragraph 8 of Article 19 of c) the territories in respect of which the Convention is inapplicable and in
the Constitution of the International Labour Organisation the ratification of such cases the grounds on which it is inapplicable;
this Convention by any Member shall not be deemed to affect any existing
law, award, custom or agreement in virtue of which members of the armed d) the territories in respect of which it reserves its decision pending further
forces or the police enjoy any right guaranteed by this Convention. consideration of the position.
2. It shall come into force twelve months after the date on which the Article 10
ratifications of two Members have been registered with the Director- 1. Declarations communicated to the Director-General of the International
General. Labour Office in accordance with paragraph 4 or 5 of Article 35 of the
Constitution of the International Labour Organisation shall indicate
3. Thereafter, this Convention shall come into force for any Member twelve whether the provisions of the Convention will be applied in the territory
months after the date on which its ratification has been registered. concerned without modification or subject to modifications; when the
declaration indicates that the provisions of the Convention will be applied
Article 9 subject to modifications, it shall give details of the said modifications.
2. The Member, Members or international authority concerned may at any Under the International Labor Organization Convention (ILO) No. 87
time by a subsequent declaration renounce in whole or in part the right to FREEDOM OF ASSOCIATION AND PROTECTION OF THE RIGHT TO
have recourse to any modification indicated in any former declaration. ORGANIZE to which the Philippines is a signatory, "workers and employers,
without distinction whatsoever, shall have the right to establish and,
3. The Member, Members or international authority concerned may, at any subject only to the rules of the organization concerned, to job
time at which this Convention is subject to denunciation in accordance organizations of their own choosing without previous authorization."
with the provisions of Article 11, communicate to the Director-General a
declaration modifying in any other respect the terms of any former The aforcited ILO Conventions are incorporated in our Labor Code,
declaration and stating the present position in respect of the application of particularly in Article 243 thereof, which provides:
the Convention.
ART. 243. COVERAGE AND EMPLOYEES’ RIGHT TO SELF-
Article 11 ORGANIZATION. All persons employed in commercial, industrial
1. A Member which has ratified this Convention may denounce it after the and agricultural enterprises and in religious, charitable, medical
expiration of ten years from the date on which the Convention first comes or educational institutions whether operating for profit or not,
into force, by an act communicated to the Director-General of the shall have the right to self-organization and to form, join, or assist
International Labour Office for registration. Such denunciation shall not labor organizations of their own choosing for purposes of
take effect until one year after the date on which it is registered. collective bargaining. Ambulant, intermittent and itinerant
workers, self-employed people, rural workers and those without
2. Each Member which has ratified this Convention and which does not, any definite employers may form labor organizations for their
within the year following the expiration of the period of ten years mutual aid and protection.
mentioned in the preceding paragraph, exercise the right of denunciation
provided for in this Article, will be bound for another period of ten years and Articles 248 and 249 respecting ULP of employers and labor
and, thereafter, may denounce this Convention at the expiration of each organizations.
period of ten years under the terms provided for in this Article.
Parenthetically, if an employer interferes in the selection of its negotiators
Article 12 or coerces the Union to exclude from its panel of negotiators a
1. The Director-General of the International Labour Office shall notify all representative of the Union, and if it can be inferred that the employer
Members of the International Labour Organisation of the registration of all adopted the said act to yield adverse effects on the free exercise to right to
ratifications, declarations and denunciations communicated to him by the self-organization or on the right to collective bargaining of the employees,
Members of the Organisation. ULP under Article 248(a) in connection with Article 243 of the Labor Code
is committed.
2. When notifying the Members of the Organisation of the registration of
the second ratification communicated to him, the Director-General shall EXTENT AND SCOPE OF RIGHT
draw the attention of the Members of the Organisation to the date upon
which the Convention will come into force. ART. 243. Coverage and employees’ right to self-organization. - All
persons employed in commercial, industrial and agricultural enterprises
STANDARD CHARTERED BANK EMPLOYEES UNION V. CONFESSOR and in religious, charitable, medical, or educational institutions, whether
432 SCRA 308 operating for profit or not, shall have the right to self-organization and to
form, join, or assist labor organizations of their own choosing for purposes
HELD: of collective bargaining. Ambulant, intermittent and itinerant workers, self-
employed people, rural workers and those without any definite employers rendered nugatory if they could not choose their own leaders to speak on
may form labor organizations for their mutual aid and protection. (As their behalf and to bargain for them.
amended by Batas Pambansa Bilang 70, May 1, 1980).
If petitioner were to succeed in their unprecedented demand, the laborers
ART. 246. Non-abridgment of right to self-organization. - It shall be in this particular union would thus be confronted with the sad spectacle of
unlawful for any person to restrain, coerce, discriminate against or unduly the leaders of their choice condemned as irresponsible, possibly even
interfere with employees and workers in their exercise of the right to self- constituting a menace to the operations of the enterprise. That is an
organization. Such right shall include the right to form, join, or assist labor indictment of the gravest character, devoid of any factual basis. What is
organizations for the purpose of collective bargaining through worse, the result, even if not intended, would be to call into question their
representatives of their own choosing and to engage in lawful concerted undeniable right to choose their leaders, who must be treated as such with
activities for the same purpose for their mutual aid and protection, subject all the respect to which they are legitimately entitled. The fact that they
to the provisions of Article 264 of this Code. (As amended by Batas would be paid but not be allowed to work is, to repeat, to add to the
Pambansa Bilang 70, May 1, 1980). infamy that would thus attach to them necessarily, but to respondent
union equally.
PAN-AMERICAN WORLD AIRWAYS V. PAN-AMERICAN EMPLOYEES
ASSOCIATION UST FACULTY UNION V. BITONIO
27 SCRA 1202 Supra
• Refusal of the company to admit back to work the union officers
who resorted to a strike upon failure to come up with a concrete WORKER QUALIFICATIONS
agreement.
Article 277 (c). Any employee, whether employed for a definite period or
HELD: not, shall, beginning on his first day of service, be considered as an
The moment management displays what in this case appears to be grave employee for purposes of membership in any labor union. (As amended by
but unwarranted distrust in the union officials discharging their functions Section 33, Republic Act No. 6715).
just because a strike was resorted to, then the integrity of the collective
bargaining process itself is called into question. It would have been UST FACULTY UNION V. BITONIO
different if there were a rational basis for such fears, purely speculative in Supra
character. The record is bereft of slightest indication that any danger,
much less one clear and present, is to be expected from their return to WORKERS WITH RIGHT TO SELF-ORGANIZATION
work. Necessarily, the union officials have the right to feel offended by the
fact that, while they will be paid their salaries in the meanwhile they would ALL EMPLOYEES
not be considered as fit persons to perform the duties pertaining to the
positions held by them. Far from being generous such an offer could ART. 243. Coverage and employees’ right to self-organization. - All
rightfully, be considered insulting. persons employed in commercial, industrial and agricultural enterprises
and in religious, charitable, medical, or educational institutions, whether
The greater offense is to the labor movement itself, more specifically to the operating for profit or not, shall have the right to self-organization and to
right of self-organization. There is both a constitutional and statutory form, join, or assist labor organizations of their own choosing for purposes
recognition that laborers have the right to form unions to take care of their of collective bargaining. Ambulant, intermittent and itinerant workers, self-
interests vis-a-vis their employers. Their freedom organizations would be employed people, rural workers and those without any definite employers
may form labor organizations for their mutual aid and protection. (As imposes, in the same breath, upon the employee the duty to join
amended by Batas Pambansa Bilang 70, May 1, 1980). associations. The law does not enjoin an employee to sign up with any
association.
Article 212. xxx (f) "Employee" includes any person in the employ of an
employer. The term shall not be limited to the employees of a particular The right to refrain from joining labor organizations recognized by Section
employer, unless the Code so explicitly states. It shall include any 3 of the Industrial Peace Act is, however, limited. The legal protection
individual whose work has ceased as a result of or in connection with any granted to such right to refrain from joining is withdrawn by operation of
current labor dispute or because of any unfair labor practice if he has not law, where a labor union and an employer have agreed on a closed shop,
obtained any other substantially equivalent and regular employment. by virtue of which the employer may employ only member of the collective
bargaining union, and the employees must continue to be members of the
VICTORIANO V. ELIZALDE ROPE WORKERS UNION union for the duration of the contract in order to keep their jobs. Thus
59 SCRA 54 Section 4 (a) (4) of the Industrial Peace Act, before its amendment by
Republic Act No. 3350, provides that although it would be an unfair labor
HELD: practice for an employer "to discriminate in regard to hire or tenure of
Both the Constitution and Republic Act No. 875 recognize freedom of employment or any term or condition of employment to encourage or
association. Section 1 (6) of Article III of the Constitution of 1935, as well discourage membership in any labor organization" the employer is,
as Section 7 of Article IV of the Constitution of 1973, provide that the right however, not precluded "from making an agreement with a labor
to form associations or societies for purposes not contrary to law shall not organization to require as a condition of employment membership therein,
be abridged. Section 3 of Republic Act No. 875 provides that employees if such labor organization is the representative of the employees". By
shall have the right to self-organization and to form, join of assist labor virtue, therefore, of a closed shop agreement, before the enactment of
organizations of their own choosing for the purpose of collective bargaining Republic Act No. 3350, if any person, regardless of his religious beliefs,
and to engage in concerted activities for the purpose of collective wishes to be employed or to keep his employment, he must become a
bargaining and other mutual aid or protection. What the Constitution and member of the collective bargaining union. Hence, the right of said
the Industrial Peace Act recognize and guarantee is the "right" to form or employee not to join the labor union is curtailed and withdrawn.
join associations. Notwithstanding the different theories propounded by
the different schools of jurisprudence regarding the nature and contents of To that all-embracing coverage of the closed shop arrangement, Republic
a "right", it can be safely said that whatever theory one subscribes to, a Act No. 3350 introduced an exception, when it added to Section 4 (a) (4)
right comprehends at least two broad notions, namely: first, liberty or of the Industrial Peace Act the following proviso: "but such agreement
freedom, i.e., the absence of legal restraint, whereby an employee may act shall not cover members of any religious sects which prohibit
for himself without being prevented by law; and second, power, whereby an affiliation of their members in any such labor organization".
employee may, as he pleases, join or refrain from Joining an association. It Republic Act No. 3350 merely excludes ipso jure from the
is, therefore, the employee who should decide for himself whether he application and coverage of the closed shop agreement the
should join or not an association; and should he choose to join, he himself employees belonging to any religious sects which prohibit
makes up his mind as to which association he would join; and even after affiliation of their members with any labor organization. What the
he has joined, he still retains the liberty and the power to leave and cancel exception provides, therefore, is that members of said religious
his membership with said organization at any time. It is clear, therefore, sects cannot be compelled or coerced to join labor unions even
that the right to join a union includes the right to abstain from joining any when said unions have closed shop agreements with the employers;
union. Inasmuch as what both the Constitution and the Industrial Peace that in spite of any closed shop agreement, members of said religious
Act have recognized, and guaranteed to the employee, is the "right" to join sects cannot be refused employment or dismissed from their jobs on the
associations of his choice, it would be absurd to say that the law also sole ground that they are not members of the collective bargaining union.
It is clear, therefore, that the assailed Act, far from infringing the GOVERNMENT CORPORATION EMPLOYEES
constitutional provision on freedom of association, upholds and
reinforces it. It does not prohibit the members of said religious ART. 244. Right of employees in the public service. - Employees of
sects from affiliating with labor unions. It still leaves to said government corporations established under the Corporation Code shall
members the liberty and the power to affiliate, or not to affiliate, have the right to organize and to bargain collectively with their respective
with labor unions. If, notwithstanding their religious beliefs, the members employers. All other employees in the civil service shall have the right to
of said religious sects prefer to sign up with the labor union, they can do form associations for purposes not contrary to law. (As amended by
so. If in deference and fealty to their religious faith, they refuse to sign up, Executive Order No. 111, December 24, 1986).
they can do so; the law does not coerce them to join; neither does the law
prohibit them from joining; and neither may the employer or labor union SUPERVISORS
compel them to join. Republic Act No. 3350, therefore, does not violate the
constitutional provision on freedom of association. ART. 245. Ineligibility of managerial employees to join any labor
organization; right of supervisory employees. - Managerial employees
KAPATIRAN SA MEAT AND CANNING DIVISION V. CALLEJA are not eligible to join, assist or form any labor organization. Supervisory
162 SCRA 367 employees shall not be eligible for membership in a labor organization of
the rank-and-file employees but may join, assist or form separate labor
HELD: organizations of their own. (As amended by Section 18, Republic Act No.
After deliberating on the petition and the documents annexed thereto, We 6715, March 21, 1989).
find no merit in the Petition. The public respondent did not err in
dismissing the petitioner's appeal in BLR Case No. A-12-389-87. This ART. 245-A. Effect of inclusion as members of employees outside
Court's decision in Victoriano vs. Elizalde Rope Workers' Union, 59 SCRA 54, the bargaining unit. The inclusion as union members of employees
upholding the right of members of the IGLESIA NI KRISTO sect not to join outside the bargaining unit shall not be a ground for the cancellation of the
a labor union for being contrary to their religious beliefs, does not bar the registration of the union. Said employees are automatically deemed
members of that sect from forming their own union. The public respondent removed from the list of membership of said union.
correctly observed that the "recognition of the tenets of the sect ... should
not infringe on the basic right of self-organization granted by the ART. 212. (m) "Managerial employee" is one who is vested with the
constitution to workers, regardless of religious affiliation." powers or prerogatives to lay down and execute management policies
and/or to hire, transfer, suspend, lay-off, recall, discharge, assign or
The fact that TUPAS was able to negotiate a new CBA with ROBINA within discipline employees. Supervisory employees are those who, in the interest
the 60-day freedom period of the existing CBA, does not foreclose the right of the employer, effectively recommend such managerial actions if the
of the rival union, NEW ULO, to challenge TUPAS' claim to majority status, exercise of such authority is not merely routinary or clerical in nature but
by filing a timely petition for certification election on October 13, 1987 requires the use of independent judgment. All employees not falling within
before TUPAS' old CBA expired on November 15, 1987 and before it any of the above definitions are considered rank-and-file employees for
signed a new CBA with the company on December 3, 1987. As pointed out purposes of this Book.
by Med-Arbiter Abdullah, a "certification election is the best forum in
ascertaining the majority status of the contending unions wherein the (g) "Labor organization" means any union or association of employees
workers themselves can freely choose their bargaining representative thru which exists in whole or in part for the purpose of collective bargaining or
secret ballot." Since it has not been shown that this order is tainted with of dealing with employers concerning terms and conditions of
unfairness, this Court will not thwart the holding of a certification election. employment.
WORKERS WITH NO RIGHT OF SELF-ORGANIZATION • The Secretary, in deciding the dispute between the union and
employer, held that executive secretaries are included in the
MANAGERIAL AND CONFIDENTIAL EMPLOYEES bargaining unit composed of rank-and-file employees.
ART. 212. (m) "Managerial employee" is one who is vested with the HELD:
powers or prerogatives to lay down and execute management policies Although Article 245 of the Labor Code limits the ineligibility to join, form
and/or to hire, transfer, suspend, lay-off, recall, discharge, assign or and assist any labor organization to managerial employees, jurisprudence
discipline employees. Supervisory employees are those who, in the interest has extended this prohibition to confidential employees or those who by
of the employer, effectively recommend such managerial actions if the reason of their positions or nature of work are required to assist or act in a
exercise of such authority is not merely routinary or clerical in nature but fiduciary manner to managerial employees and hence, are likewise privy to
requires the use of independent judgment. All employees not falling within sensitive and highly confidential records.
any of the above definitions are considered rank-and-file employees for
purposes of this Book. The rationale for this inhibition has been stated to be, because if these
managerial employees would belong to or be affiliated with a Union, the
TEST latter might not be assured of their loyalty to the Union in view of evident
conflict of interests. The union can also become company-dominated with
SAN MIGUEL CORPORATION SUPERVISORS AND EXEMPT UNION V. the presence of managerial employees in Union membership. It may
LAGUESMA likewise be the source of undue advantage wherein these employees may
15 AUGUST 1997 act as spies for either party to a collective bargaining activity.
Furthermore, in the collective bargaining process, managerial employees
HELD: are supposed to be on the side of the employer, to act as its
Not every position labeled by management as confidential automatically representatives, and to see to it that its interest are well protected. The
becomes disqualified from union membership. Legal definition must be employer is not assured of such protection if these employees themselves
applied. are union members. Collective bargaining in such a situation can become
one-sided. It is the same reason that impelled this Court to consider the
In unionization context, confidential employees are limited to those who: position of confidential employees as included in the disqualification found
1. Assist or act in a confidential capacity in Art. 245 as if the disqualification of confidential employees were written
2. To persons who formulate, determine, and effectuate cumulative, in the provision. If confidential employees could unionize in order to
bargain for advantages for themselves, then they could be governed by Contrary to respondents' claim, the fact that the members-employees of
their own motives rather than the interest of the employers. Moreover, petitioner do not participate in the actual management of the cooperative
unionization of confidential employees for the purpose of collective does not make them eligible to form, assist or join a labor organization for
bargaining would mean the extension of the law to persons or individuals the purpose of collective bargaining with petitioner. The Court's ruling in
who are supposed to act "in the interest of the employers. It is not the Davao City case that members of cooperative cannot join a labor union
farfetched that in the course of collective bargaining, they might jeopardize for purposes of collective bargaining was based on the fact that as
that interest which they are duty-bound to protect… members of the cooperative they are co-owners thereof. As such, they
cannot invoke the right to collective bargaining for "certainly an owner
WORKER/MEMBER OF COOPERATIVE cannot bargain with himself or his co-owners." [Cooperative Rural Bank of
Davao City, Inc. v. Ferrer-Calleja, et al., supra]. It is the fact of ownership
• An employee of a cooperative who is also a member and co-owner of the cooperative, and not involvement in the management thereof, which
cannot invoke the right to collective bargaining, for certainly an disqualifies a member from joining any labor organization within the
owner cannot bargain with himself and his co-owners cooperative. Thus, irrespective of the degree of their participation in the
• However, in so far as it involves cooperatives with employees or actual management of the cooperative, all members thereof cannot form,
members thereof, such employees are entitled to collective assist or join a labor organization for the purpose of collective bargaining.
bargaining negotiations and such rights which are enshrined in the
Constitution and existing laws IF MEMBERS/CO-OWNERS OF A COOPERATIVE ARE PROHIBITED FROM
• But even as regards employees who are members of the JOINING AND FORMING LABOR ORGANIZATIONS, THEN IT FOLLOWS
cooperative, their incapacity to bargain doesn’t stop them from THAT STOCKHOLDERS/EMPLOYEES OF A CORPORATION MAY
forming their organization which isn’t a union LIKEWISE BE PROHIBITED FROM FORMING OR JOINING LABOR
ORGANIZATIONS. TRUE OR FALSE?
BENGUET ELECTRIC COOPERATIVE V. CALLEJA • False, while cooperatives may exercise some of the rights and
180 SCRA 740 privileges given to ordinary corporations provided under existing
laws, such cooperatives enjoy other privileges not granted to the
HELD: latter. Similarly, members of cooperatives have rights and
The issue of whether or not employees of a cooperative are qualified to obligations different from those of stockholders of ordinary
form or join a labor organization for purposes of collective bargaining has corporations. It was precisely because of the special nature of
already been resolved and clarified in the case of Cooperative Rural Bank of cooperatives, that the Court held in the Davao City case that
Davao City, Inc. vs. Ferrer Calleja, et al. [G.R. No. 7795, September 26,1988] members-employees thereof cannot form or join a labor union for
and reiterated in the cases of Batangas-Electric Cooperative Labor Union v. purposes of collective bargaining.
Young, et al. [G.R. Nos. 62386, 70880 and 74560 November 9, 1988] and • Following the abovementioned rationale, it was held in Rural Bank
San Jose City Electric Service Cooperative, Inc. v. Ministry of Labor and of Davao City, “A cooperative ... is by its nature different from an
Employment, et al. [G.R. No. 77231, May 31, 1989] wherein the Court had ordinary business concern being run either by persons,
stated that the right to collective bargaining is not available to an partnerships, or corporations. Its owners and/or members are the
employee of a cooperative who at the same time is a member and co- ones who run and operate the business while the others are its
owner thereof. With respect, however, to employees who are neither employees. As above stated, irrespective of the number of shares
members nor co-owners of the cooperative they are entitled to exercise the owned by each member they are entitled to cast one vote each in
rights to self-organization, collective bargaining and negotiation as deciding upon the affairs of the cooperative. Their share capital
mandated by the 1987 Constitution and applicable statutes. earn limited interest. They enjoy special privileges as-exemption
from income tax and sales taxes, preferential right to supply their
activities for the same purpose for their mutual aid and protection, subject (f) To dismiss, discharge or otherwise prejudice or discriminate against an
to the provisions of Article 264 of this Code. (As amended by Batas employee for having given or being about to give testimony under this
Pambansa Bilang 70, May 1, 1980). Code;
ART. 248. Unfair labor practices of employers. - It shall be unlawful (g) To violate the duty to bargain collectively as prescribed by this Code;
for an employer to commit any of the following unfair labor practice:
(h) To pay negotiation or attorney’s fees to the union or its officers or
(a) To interfere with, restrain or coerce employees in the exercise of their agents as part of the settlement of any issue in collective bargaining or any
right to self-organization; other dispute; or
(b) To require as a condition of employment that a person or an employee (i) To violate a collective bargaining agreement.
shall not join a labor organization or shall withdraw from one to which he
belongs; The provisions of the preceding paragraph notwithstanding, only the
officers and agents of corporations, associations or partnerships who have
(c) To contract out services or functions being performed by union actually participated in, authorized or ratified unfair labor practices shall
members when such will interfere with, restrain or coerce employees in the be held criminally liable. (As amended by Batas Pambansa Bilang 130,
exercise of their rights to self-organization; August 21, 1981).
(d) To initiate, dominate, assist or otherwise interfere with the formation or ART. 249. Unfair labor practices of labor organizations. - It shall be
administration of any labor organization, including the giving of financial or unfair labor practice for a labor organization, its officers, agents or
other support to it or its organizers or supporters; representatives:
(e) To discriminate in regard to wages, hours of work and other terms and (a) To restrain or coerce employees in the exercise of their right to self-
conditions of employment in order to encourage or discourage organization. However, a labor organization shall have the right to
membership in any labor organization. Nothing in this Code or in any other prescribe its own rules with respect to the acquisition or retention of
law shall stop the parties from requiring membership in a recognized membership;
collective bargaining agent as a condition for employment, except those
employees who are already members of another union at the time of the (b) To cause or attempt to cause an employer to discriminate against an
signing of the collective bargaining agreement. Employees of an employee, including discrimination against an employee with respect to
appropriate bargaining unit who are not members of the recognized whom membership in such organization has been denied or to terminate
collective bargaining agent may be assessed a reasonable fee equivalent to an employee on any ground other than the usual terms and conditions
the dues and other fees paid by members of the recognized collective under which membership or continuation of membership is made available
bargaining agent, if such non-union members accept the benefits under to other members;
the collective bargaining agreement: Provided, that the individual
authorization required under Article 242, paragraph (o) of this Code shall (c) To violate the duty, or refuse to bargain collectively with the employer,
not apply to the non-members of the recognized collective bargaining provided it is the representative of the employees;
agent;
(d) 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
533 SCRA 125 Bureau of Labor Relations (BLR) as Seamen's Association of the
Philippines (SAPI). It is the registration of the organization with the BLR
• Petitioner is the incumbent bargaining agent of rank-and-file and not with the SEC which made it a legitimate labor organization with
employees of SMC’s three divisions. The respondent has been rights and privileges granted under the Labor Code.
issued a charter as a labor union. Respondent sought to be
certified as the bargaining agent of the same type of employees UNION FUNCTION AND RATIONALE
like those of petitioner. Petitioner filed for the cancellation of
registration and listing as labor organization of respondent. UNITED SEAMAN’S UNION V. DAVAO SHIPOWNERS ASSN.
Among other allegations, petitioner alleged that respondent is a 20 SCRA 1226
trade union and not a legitimate labor organization.
HELD:
HELD: A labor organization is wholesome if it serves its legitimate purpose of
A legitimate labor organization is defined as "any labor organization duly promoting the interests of labor without unnecessary labor disputes. That
registered with the Department of Labor and Employment, and includes is why it is given personality and recognition in concluding collective
any branch or local thereof." The mandate of the Labor Code is to ensure bargaining agreements. But if it is made use of as a subterfuge, or as a
strict compliance with the requirements on registration because a means to subvert valid commitments, it defeats its own purpose, for it
legitimate labor organization is entitled to specific rights under the Labor tends to undermine the harmonious relations between management and
Code, and are involved in activities directly affecting matters of public labor. The situation does not deserve any approving sanction from the
interest. Registration requirements are intended to afford a measure of Court.
protection to unsuspecting employees who may be lured into joining
unscrupulous or fly-by-night unions whose sole purpose is to control union GUIJARNO V. CIR
funds or use the labor organization for illegitimate ends. Legitimate labor 52 SCRA 307
organizations have exclusive rights under the law which cannot be
exercised by non-legitimate unions, one of which is the right to be certified HELD:
as the exclusive representative of all the employees in an appropriate The obligation was categorically imposed on the State, under the 1935
collective bargaining unit for purposes of collective bargaining. The Constitution, to "afford protection to labor, especially to working women
acquisition of rights by any union or labor organization, particularly the and minors..." That is to carry out the purpose implicit in one of the five
right to file a petition for certification election, first and foremost, depends declared principles, namely, the promotion of social justice "to insure the
on whether or not the labor organization has attained the status of a well-being and economic security of all the people…" It is then the
legitimate labor organization. individual employee, as a separate, finite human being, with his problems
and his needs, who must be attended to. He is the beneficiary of the
CEBU SEAMAN’S ASSOCIATION V. FERRER-CALLEJA concern thus made manifest by the fundamental law. The present
212 SCRA 50 Constitution is even more explicit on the matter. The principle that the
State shall promote social justice is categorically based on the concept of
HELD: insuring "the dignity, welfare, and security of all the people." Insofar as the
As stated in the findings of fact in the questioned resolution of Director provision on the State affording protection to labor is concerned, it is
Pura Ferrer-Calleja, on October 23, 1950, a group of deck officers further required to "promote full employment and equality in employment,
organized the Cebu Seamen's Association, Inc., (CSAI), a non-stock ensure equal work opportunities regardless of sex, race, or creed, and
corporation and registered it with the Securities and Exchange regulate the relations between workers and employers. The State shall
Commission (SEC). The same group registered the organization with the assure the rights of workers to self-organization, collective bargaining,
security of tenure, and just and humane conditions of work." Where does legal personality and shall be entitled to the rights and privileges granted
that leave a labor union, it may be asked. Correctly understood, it is by law to legitimate labor organizations upon issuance of the certificate of
nothing but the means of assuring that such fundamental objectives would registration based on the following requirements:
be achieved. It is the instrumentality through which an individual laborer
who is helpless as against a powerful employer may, through concerted (a) Fifty pesos (P50.00) registration fee;
effort and activity, achieve the goal of economic well-being. That is the
philosophy underlying the Industrial Peace Act. For, rightly has it been said
(b) The names of its officers, their addresses, the principal address of the
that workers unorganized are weak; workers organized are strong.
labor organization, the minutes of the organizational meetings and the list
Necessarily then, they join labor unions. To further increase the
of the workers who participated in such meetings;
effectiveness of such organizations, a closed-shop has been allowed. It
could happen, though, that such a stipulation which assures further weight
to a labor union at the bargaining table could be utilized against minority (c) In case the applicant is an independent union, the names of all its
groups or individual members thereof. There are indications that such a members comprising at least twenty percent (20%) of all the employees in
deplorable situation did so manifest itself here. Respondent Court, it would the bargaining unit where it seeks to operate;
appear, was not sufficiently alert to such a danger. What is worse, it paid
no heed to the controlling doctrine which is merely a recognition of a basic (d) If the applicant union has been in existence for one or more years,
fact in life, namely, that power in a collectivity could be the means of copies of its annual financial reports; and
crushing opposition and stifling the voices of those who are in dissent. The
right to join others of like persuasion is indeed valuable. An individual by
(e) Four copies of the constitution and by-laws of the applicant union,
himself may feel inadequate to meet the exigencies of life or even to
minutes of its adoption or ratification, and the list of the members who
express his personality without the right to association being vitalized. It
participated in it.
could happen though that whatever group may be in control of the
organization may simply ignore his most-cherished desires and treat him
ART. 234-A. Chartering and Creation of a Local Chapter. - A duly
as if he counts for naught. The antagonism between him and the group
registered federation or national union may directly create a local chapter
becomes marked. Dissatisfaction if given expression may be labeled
by issuing a charter certificate indicating the establishment of the local
disloyalty. In the labor field, the union under such circumstances may no
chapter. The chapter shall acquire legal personality only for purposes of
longer be a haven of refuge, but indeed as much of a potential foe as
filing a petition for certification election from the date it was issued a
management itself. Precisely with the Anakan doctrine, such an
charter certificate.
undesirable eventuality has been sought to be minimized, if not entirely
avoided. There is no justification then, both as a matter of precedent and
as a matter of principle, for the decision reached by respondent Court. The chapter shall be entitled to all other rights and privileges of a
legitimate labor organization only upon the submission of the following
LABOR UNION AND GOVERNMENT REGULATION documents in addition to its charter certificate:
UNION REGISTRATION AND PROCEDURE (a) The names of the chapter's officers, their addresses, and the principal
office of the chapter; and
REQUIREMENTS
(b) The chapter's constitution and by-laws: Provided, That where the
ART. 234. Requirements of registration. - A federation, national union chapter's constitution and by-laws are the same as that of the federation or
or industry or trade union center or an independent union shall acquire the national union, this fact shall be indicated accordingly.
its members. Mere affiliation does not divest the local union of its own Implementing Rules, which we again quote as follows: "(c) The local or
personality, neither does it give the mother federation the license to act chapter of a labor federation or national union shall have and maintain a
independently of the local union. It only gives rise to a contract of agency, constitution and by-laws, set of officers and books of accounts. For
where the former acts in representation of the latter. Hence, local unions reporting purposes, the procedure governing the reporting of independently
are considered principals while the federation is deemed to be merely their registered unions, federations or national unions shall be observed" (emphasis
agent. As such principals, the unions are entitled to exercise the rights supplied).
and privileges of a legitimate labor organization, including the right to seek
certification as the sole and exclusive bargaining agent in the appropriate Since the "procedure governing the reporting of independently registered
employer unit. unions" refers to the certification and attestation requirements contained in
Article 235, paragraph 2, it follows that the constitution and by-laws, set of
RATIONALE officers and books of accounts submitted by the local and chapter must
likewise comply with these requirements. The same rationale for requiring
PHOENIX IRON AND STEEL CORP. V. SEC. OF LABOR the submission of duly subscribed documents upon union registration
244 SCRA 173 exists in the case of union affiliation. Moreover, there is greater reason to
exact compliance with the certification and attestation requirements
HELD: because, as previously mentioned, several requirements applicable to
In the case of union registration, the rationale for requiring that the independent union registration are no longer required in the case of the
submitted documents and papers be certified under oath by the secretary formation of a local or chapter. The policy of the law in conferring greater
or treasurer, as the case may be, and attested to by the president is bargaining power upon labor unions must be balanced with the policy of
apparent. The submission of the required documents (and payment of providing preventive measures against the commission of fraud.
P50.00 registration fee) becomes the Bureau's basis for approval of the
application for registration. Upon approval, the labor union acquires legal CONSTITUTION; BY-LAWS
personality and is entitled to all the rights and privileges granted by the
law to a legitimate labor organization. The employer naturally needs UST FACULTY UNION V. BITONIO
assurance that the union it is dealing with is a bona-fide organization, one Supra
which has not submitted false statements or misrepresentations to the
Bureau. The inclusion of the certification and attestation requirements will HELD:
in a marked degree allay these apprehensions of management. Not only is The point to be stressed is that the union's CBL is the fundamental law
the issuance of any false statement and misrepresentation a ground for that governs the relationship between and among the members of the
cancellation of registration (see Article 239 (a), (c) and (d)); it is also a union. It is where the rights, duties and obligations, powers, functions and
ground for a criminal charge of perjury. 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
The certification and attestation requirements are preventive measures member of the union. Without respect for the CBL, a union as a
against the commission of fraud. They likewise afford a measure of democratic institution degenerates into nothing more than a group of
protection to unsuspecting employees who may be lured into joining individuals governed by mob rule.
unscrupulous or fly-by-night unions whose sole purpose is to control union
funds or to use the union for dubious ends. SAN MIGUEL CORPORATION V. MANDAUE
467 SCRA 107
In the case of union affiliation with a federation, the documentary
requirements are found in Rule II, Section 3 (e), Book V of the HELD:
By-laws has traditionally been defined as regulations, ordinances, rules or EFFECT ON CONSTITUTION: STATUTORY GUARANTEE OF FREEDOM OF
laws adopted by an association or corporation or the like for its internal ASSOCIATION
governance, including rules for routine matters such as calling meetings
and the like. The importance of by-laws to a labor organization cannot be PHIL. ASSOCIATION OF FREE LABOR UNIONS V. SEC. OF LABOR
gainsaid. Without such provisions governing the internal governance of the 27 SCRA 40
organization, such as rules on meetings and quorum requirements, there
would be no apparent basis on how the union could operate. Without a set HELD:
of by-laws which provides how the local/chapter arrives at its decisions or The theory to the effect that Section 23 of Republic Act No. 875 unduly
otherwise wields its attributes of legal personality, then every action of the curtails the freedom of assembly and association guaranteed in the Bill of
local/chapter may be put into legal controversy. Rights is devoid of factual basis. The registration prescribed in paragraph
(b) of said section is not a limitation to the right of assembly or
However, if those key by-law provisions on matters such as quorum association, which may be exercised with or without said registration. The
requirements, meetings, or on the internal governance of the local/chapter latter is merely a condition sine qua non for the acquisition of legal
are themselves already provided for in the constitution, then it would be personality by labor organizations, associations or unions and the
feasible to overlook the requirement for by-laws. Indeed in such an event, possession of the "rights and privileges granted by law to legitimate labor
to insist on the submission of a separate document denominated as “By- organizations". The Constitution does not guarantee these rights and
Laws” would be an undue technicality, as well as a redundancy. privileges, much less said personality, which are mere statutory creations,
for the possession and exercise of which registration is required to protect
An examination of respondent’s constitution reveals it sufficiently both labor and the public against abuses, fraud, or impostors who pose as
comprehensive in establishing the necessary rules for its operation. Article organizers, although not truly accredited agents of the union they purport
IV establishes the requisites for membership in the local/chapter. Articles to represent. Such requirement is a valid exercise of the police power,
V and VI name the various officers and what their respective functions are. because the activities in which labor organizations, associations and union
The procedure for election of these officers, including the necessary vote of workers are engaged affect public interest, which should be protected.
requirements, is provided for in Article IX, while Article XV delineates the Furthermore, the obligation to submit financial statements, as a condition
procedure for the impeachment of these officers. Article VII establishes the for the non-cancellation of a certificate of registration, is a reasonable
standing committees of the local/chapter and how their members are regulation for the benefit of the members of the organization, considering
appointed. Article VIII lays down the rules for meetings of the union, that the same generally solicits funds or membership, as well as
including the notice and quorum requirements thereof. Article X oftentimes collects, on behalf of its members, huge amounts of money due
enumerates with particularity the rules for union dues, special to them or to the organization.
assessments, fines, and other payments. Article XII provides the general
rule for quorum in meetings of the Board of Directors and of the members QUESTION OF LEGITIMACY
of the local/chapter, and cites the applicability of the Robert’s Rules of
Order[43] in its meetings. And finally, Article XVI governs and institutes SAN MIGUEL CORPORATION EMPLOYEES UNION V. SAN MIGUEL
the requisites for the amendment of the constitution. CORPORATION
Supra
Indeed, it is difficult to see in this case what a set of by-laws separate from
the constitution for respondent could provide that is not already provided HELD:
for by the Constitution. These premises considered, there is clearly no A legitimate labor organization is defined as any labor organization duly
need for a separate set of by-laws to be submitted by respondent. registered with the Department of Labor and Employment and includes
any branch or local thereof. The mandate of the Labor Code is to ensure
strict compliance with the requirements of registration because a SAN MIGUEL CORPORATION (MANDAUE PACKAGING) V. MANDAUE
legitimate labor organization is entitled to specific rights under the Code PACKING PRODUCTS PLANTS
and are involved in activities directly affecting matters of public interest. 467 SCRA 107
Registration requirements are intended to afford a measure of protection
to unsuspecting employees who may be lured into joining unscrupulous or HELD:
fly-by-night unions whose sole purpose is to control union funds or use the When a local/chapter applies for registration, matters raised against the
labor organization for illegitimate ends. Legitimate labor organizations personality of the federation or national union itself should not be acted
have exclusive rights under the law which cannot be exercised by non- upon by the Bureau or Regional office, owing to the preclusion of collateral
legitimate unions, one of which is the right to be certified as the exclusive attack. Instead, the proper matter for evaluation by the Bureau or
representative of all the employees in an appropriate collective bargaining Regional Office should be limited to whether the local/chapter is indeed a
unit for purposes of collective bargaining. duly created affiliate of the national union or federation.
ART. 235. Action on application. - The Bureau shall act on all applications ACEDERA V. INTERNATIONAL CONTAINER SERVICES
for registration within thirty (30) days from filing. 395 SCRA 103
All requisite documents and papers shall be certified under oath by the HELD:
secretary or the treasurer of the organization, as the case may be, and A labor union is one such party authorized to represent its members under
attested to by its president. the Labor Code which provides that a union may act as a representative of
its members for the purpose of collective bargaining.
ART. 236. Denial of registration; appeal. - The decision of the Labor Relations
Division in the regional office denying registration may be appealed by the CORNISTA-DOMINGO V. NLRC
applicant union to the Bureau within ten (10) days from receipt of notice 504 SCRA 659
thereof.
HELD:
UMALI V. LOVINA A labor union’s function is to represent its members and it can, therefore,
86 PHIL 313 file an action or enter into compromise agreements on behalf of its
members.
HELD:
Mandamus will lie against the Secretary of Labor when there is no lawful EFFECTS OF NON-REGISTRATION
reason for him to refuse the registration of the application for the
petitioner’s union and permission to operate as a legitimate labor PROTECTION TECHNOLOGY V. SECRETARY OF LABOR
organization, it being the duty of the respondent to register the application 242 SCRA 99
and issue the permit upon payment of the required fee, as provided for by
law, the investigation to be conducted by him, as required by law, having • Whether books of account form part of the mandatory
been conducted and completed, as may be inferred from his official documentary requirements for registration of a newly organized
statements in connection therewith. union affiliated with a federation, or a local or chapter of such a
federation, as a legitimate labor organization?
*duty is ministerial, mandamus will lie
HELD: failure to submit these documents together with the list of the newly
Books of account are one of the mandatory requirements for registration of elected/appointed officers and their postal addresses within thirty (30)
a newly organized union affiliated with a federation. And the non- days from election;chan robles virtual law library
submission of such is a ground to oppose a certification election.
(d) Failure to submit the annual financial report to the Bureau within thirty
It has to be noted that the controlling intention is to minimize the fraud (30) days after the closing of every fiscal year and misrepresentation, false
and diversion in the course of subsequent formation and growth of the entries or fraud in the preparation of the financial report itself;
union fund. These requirements an exercise of the overriding police power
of the State, designed for the protection of workers against potential abuse (e) Acting as a labor contractor or engaging in the "cabo" system, or
by unions and federations that recruit them. otherwise engaging in any activity prohibited by law;
CANCELLATION OF UNION CERTIFICATE REGISTRATION (f) Entering into collective bargaining agreements which provide terms and
conditions of employment below minimum standards established by law;
ART. 238. Cancellation of registration, appeal. The certificate of registration
of any legitimate labor organization, whether national or local, may be (g) Asking for or accepting attorney’s fees or negotiation fees from
cancelled by the Bureau, after due hearing, only on the grounds specified employers;
in Article 239.
(h) Other than for mandatory activities under this Code, checking off
ART. 238-A. Effect of petition for cancellation of registration. A petition for special assessments or any other fees without duly signed individual
cancellation of union registration shall not suspend the proceedings on written authorizations of the members;
certification election nor shall it prevent the filing of a petition for
certification election. (i) Failure to submit list of individual members to the Bureau once a year
or whenever required by the Bureau; and
In case of cancellation, nothing herein shall restrict the right of the union
to seek just and equitable remedies in the appopriate courts. (j) Failure to comply with requirements under Articles 237 and 238.
ART. 239. Grounds for cancellation of union registration. - The following shall INTERNATIONAL ACTIVITIES OF UNION: PROHIBITION AND
constitute grounds for cancellation of union registration: REGULATION
(a) Misrepresentation, false statement or fraud in connection with the ART. 269. Prohibition against aliens; exceptions. - All aliens, natural or
adoption or ratification of the constitution and by-laws or amendments juridical, as well as foreign organizations are strictly prohibited from
thereto, the minutes of ratification and the list of members who took part engaging directly or indirectly in all forms of trade union activities without
in the ratification; prejudice to normal contacts between Philippine labor unions and
recognized international labor centers: Provided, however, That aliens
(b) Failure to submit the documents mentioned in the preceding paragraph working in the country with valid permits issued by the Department of
within thirty (30) days from adoption or ratification of the constitution and Labor and Employment, may exercise the right to self-organization and join
by-laws or amendments thereto; or assist labor organizations of their own choosing for purposes of
collective bargaining: Provided, further, That said aliens are nationals of a
(c) Misrepresentation, false statements or fraud in connection with the country which grants the same or similar rights to Filipino workers. (As
election of officers, minutes of the election of officers, the list of voters, or amended by Section 29, Republic Act No. 6715, March 21, 1989).
Reform shall exercise the powers and responsibilities vested by this Title in
ART. 270. Regulation of foreign assistance. - (a) No foreign individual, the Secretary of Labor.
organization or entity may give any donations, grants or other forms of
assistance, in cash or in kind, directly or indirectly, to any labor UNION-MEMBER RELATIONS
organization, group of workers or any auxiliary thereof, such as
cooperatives, credit unions and institutions engaged in research, education ART. 241. Rights and conditions of membership in a labor organization. - The
or communication, in relation to trade union activities, without prior following are the rights and conditions of membership in a labor
permission by the Secretary of Labor. organization:
"Trade union activities" shall mean: (a) No arbitrary or excessive initiation fees shall be required of the
(1) organization, formation and administration of labor organization; members of a legitimate labor organization nor shall arbitrary, excessive or
oppressive fine and forfeiture be imposed;
(2) negotiation and administration of collective bargaining agreements;
(b) The members shall be entitled to full and detailed reports from their
(3) all forms of concerted union action; officers and representatives of all financial transactions as provided for in
the constitution and by-laws of the organization;
(4) organizing, managing, or assisting union conventions, meetings, rallies,
referenda, teach-ins, seminars, conferences and institutes; (c) The members shall directly elect their officers, including those of the
national union or federation, to which they or their union is affiliated, by
(5) any form of participation or involvement in representation proceedings, secret ballot at intervals of five (5) years. No qualification requirements for
representation elections, consent elections, union elections; and candidacy to any position shall be imposed other than membership in
good standing in subject labor organization. The secretary or any other
(6) other activities or actions analogous to the foregoing. responsible union officer shall furnish the Secretary of Labor and
Employment with a list of the newly-elected officers, together with the
(b) This prohibition shall equally apply to foreign donations, grants or appointive officers or agents who are entrusted with the handling of funds,
other forms of assistance, in cash or in kind, given directly or indirectly to within thirty (30) calendar days after the election of officers or from the
any employer or employer’s organization to support any activity or occurrence of any change in the list of officers of the labor organization;
activities affecting trade unions. (As amended by Section 16, Republic Act No. 6715, March 21, 1989).
(c) The Secretary of Labor shall promulgate rules and regulations to (d) The members shall determine by secret ballot, after due deliberation,
regulate and control the giving and receiving of such donations, grants, or any question of major policy affecting the entire membership of the
other forms of assistance, including the mandatory reporting of the organization, unless the nature of the organization or force majeure
amounts of the donations or grants, the specific recipients thereof, the renders such secret ballot impractical, in which case, the board of
projects or activities proposed to be supported, and their duration. directors of the organization may make the decision in behalf of the
general membership;
ART. 271. Applicability to farm tenants and rural workers. - The provisions of
this Title pertaining to foreign organizations and activities shall be deemed (e) No labor organization shall knowingly admit as members or continue in
applicable likewise to all organizations of farm tenants, rural workers, and membership any individual who belongs to a subversive organization or
the like: Provided, That in appropriate cases, the Secretary of Agrarian who is engaged directly or indirectly in any subversive activity;
(f) No person who has been convicted of a crime involving moral turpitude (k) The officers of any labor organization shall not be paid any
shall be eligible for election as a union officer or for appointment to any compensation other than the salaries and expenses due to their positions
position in the union; 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
(g) No officer, agent or member of a labor organization shall collect any membership meeting duly called for the purpose. The minutes of the
fees, dues, or other contributions in its behalf or make any disbursement meeting and the list of participants and ballots cast shall be subject to
of its money or funds unless he is duly authorized pursuant to its inspection by the Secretary of Labor or his duly authorized representatives.
constitution and by-laws; Any irregularities in the approval of the resolutions shall be a ground for
impeachment or expulsion from the organization;
(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 (l) The treasurer of any labor organization and every officer thereof who is
collection and entered into the record of the organization to be kept and responsible for the account of such organization or for the collection,
maintained for the purpose; management, disbursement, custody or control of the funds, moneys and
other properties of the organization, shall render to the organization and to
(i) The funds of the organization shall not be applied for any purpose or its members a true and correct account of all moneys received and paid by
object other than those expressly provided by its constitution and by-laws him since he assumed office or since the last day on which he rendered
or those expressly authorized by written resolution adopted by the majority such account, and of all bonds, securities and other properties of the
of the members at a general meeting duly called for the purpose; organization entrusted to his custody or under his control. The rendering
of such account shall be made:
(j) Every income or revenue of the organization shall be evidenced by a (1) At least once a year within thirty (30) days after the close of its fiscal
record showing its source, and every expenditure of its funds shall be year;
evidenced by a receipt from the person to whom the payment is made,
which shall state the date, place and purpose of such payment. Such (2) At such other times as may be required by a resolution of the majority
record or receipt shall form part of the financial records of the of the members of the organization; and
organization.
(3) Upon vacating his office.
Any action involving the funds of the organization shall prescribe after The account shall be duly audited and verified by affidavit and a copy
three (3) years from the date of submission of the annual financial report thereof shall be furnished the Secretary of Labor.
to the Department of Labor and Employment or from the date the same
should have been submitted as required by law, whichever comes earlier: (m) The books of accounts and other records of the financial activities of
Provided, That this provision shall apply only to a legitimate labor any labor organization shall be open to inspection by any officer or
organization which has submitted the financial report requirements under member thereof during office hours;
this Code: Provided, further, that failure of any labor organization to
comply with the periodic financial reports required by law and such rules (n) No special assessment or other extraordinary fees may be levied upon
and regulations promulgated thereunder six (6) months after the effectivity the members of a labor organization unless authorized by a written
of this Act shall automatically result in the cancellation of union resolution of a majority of all the members in a general membership
registration of such labor organization; (As amended by Section 16, meeting duly called for the purpose. The secretary of the organization shall
Republic Act No. 6715, March 21, 1989). record the minutes of the meeting including the list of all members
present, the votes cast, the purpose of the special assessment or fees and
the recipient of such assessment or fees. The record shall be attested to by HELD:
the president. The union has been evolved as an organization of collective strength for the
protection of labor against the unjust executions of capital, but equally
(o) Other than for mandatory activities under the Code, no special important s the requirement of fair dealing between the union and its
assessments, attorney’s fees, negotiation fees or any other extraordinary members, which is fiduciary in nature, and arises out of two factors—
fees may be checked off from any amount due to an employee without an 1. Degree of dependence of the individual employee on the union
individual written authorization duly signed by the employee. The organization
authorization should specifically state the amount, purpose and beneficiary 2. Corollary to the first, is the comprehensive power vested in the
of the deduction; and union with respect to the individual.
The union may be considered but the agent of its members for the purpose
(p) It shall be the duty of any labor organization and its officers to inform of securing for them fair and just wages and good working conditions, and
its members on the provisions of its constitution and by-laws, collective is subject to the obligation of giving the members as its principals all
bargaining agreement, the prevailing labor relations system and all their information relevant to union and labor matters entrusted to it.
rights and obligations under existing labor laws.
ISSUES
For this purpose, registered labor organizations may assess reasonable
dues to finance labor relations seminars and other labor education ADMISSION AND DISCIPLINE OF MEMBERS
activities.
ART. 249. Unfair labor practices of labor organizations. - It shall be unfair
Any violation of the above rights and conditions of membership shall be a labor practice for a labor organization, its officers, agents or
ground for cancellation of union registration or expulsion of officers from representatives:
office, whichever is appropriate. At least thirty percent (30%) of the
members of a union or any member or members specially concerned may (a) To restrain or coerce employees in the exercise of their right to self-
report such violation to the Bureau. The Bureau shall have the power to organization. However, a labor organization shall have the right to
hear and decide any reported violation to mete the appropriate penalty. prescribe its own rules with respect to the acquisition or retention of
membership; xxx
Criminal and civil liabilities arising from violations of above rights and
conditions of membership shall continue to be under the jurisdiction of ART. 277. Miscellaneous provisions.
ordinary courts.
(c) Any employee, whether employed for a definite period or not, shall,
CONSTITUTION AND BY-LAWS beginning on his first day of service, be considered as an employee for
purposes of membership in any labor union. (As amended by Section 33,
SAN MIGUEL CORP. EMPLOYEES UNION V. SAN MIGUEL CORPORATION Republic Act No. 6715).
Supra
UST FACULTY UNION V. BITONIO
NATURE OF RELATIONSHIP Supra
intent. The procedure for union membership is usually embodied in the discharge, or a union to insist in discharging of an employee without any
union’s constitution and by-laws. An employee who becomes a union reasonable ground therefore. Needless to say, if said unions may be
member acquires the rights and concomitant obligations that go with the compelled to admit new members who have the requisite qualifications,
new status and becomes bound by the union’s rules and obligations. with more reason why the law and the courts exercise coercive power when
the employee involved is a long standing union member who owing to the
SALUNGA V. CIR provocations of his fellow union members, was impelled to resign but later
21 SCRA 216 on revoked the same. Surely, he may at least invoke the right of those who
seek admission for the first time, and cannot arbitrarily be denied
• Salunga was compelled by his fellow union members to resign. He readmission.
tendered his resignation but changed his mind. The company was
likewise reluctant to accept his resignation. But the union was RETENTION OF MEMBERSHIP
persistent. In the end, he was retained and he wanted to join the
union again, but was denied membership.
DISCIPLINE
HELD:
Although the State may generally not compel a union to admit any given VILLAR V. INCIONG
individual because membership therein may be afforded or deprived as a 121 SCRA 444
matter of privilege, 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 HELD:
particular employer with which it has a closed-shop agreement. Under the IRR of the Labor Code, in the case of intra-union disputes,
redress must first be sought within the organization itself in accordance
with its constitution and by laws. However, this admits of exceptions
under varying circumstances.
May not compel a
union to admit given In this case, the local union’s constitution and by-laws shouldn’t apply in
individuals (matter of
the investigation of charges against the members if the officers who filed
privilege)
the charges are the same individuals, under the by-laws, who will sit as
judges. In such a case, it is the mother union’s by-laws that shall be
applicable.
In the same vein, it should be noted that it is lawful for a mother union to
investigate members of an affiliated local union under its by-laws and
constitution, and if found guilty, may lawfully expel such members.
Labor unions aren’t entitled to arbitrarily exclude qualified applicants for (b) Subject to the constitutional right of workers to security of tenure and
membership, and a closed-shop provision is no excuse for the employer to their right to be protected against dismissal except for a just and
HELD: