LABOR RELATIONS
From the lectures of Father Agustin Nazareno
ATENEO DE DAVAO UNIVERSITY | COLLEGE OF LAW | 3-Manresa | S.Y. 2019-2020
June 19 Part 1 [ LUZ ]
COMMENTARY
Yesterday I came across a decision of the SC, (Coca-Cola
Bottlers Philippines Inc. v. Coca-Cola Bottlers Philippines
Employees Union), and it’s an outlandish error. I can
truly say it is WRONG. Completely wrong. Look it up,
when you read it, weep, because it is wrong. Later on you
will find out why it is wrong.
LABOR RELATIONS PROPER
Labor Relations proper is just a very small portion of labor
law. But it is the most high profile part of labor because
when unions act, they disturb the larger portion of
society. So, they make for good press coverage. Naan a
gani gubot, Naan a gani naglabayay bato, wa pa man pa
man ang tv. Since the news comes alive, with
demonstrations. Look at Hong Kong. The demonstrators
claim over a million demonstrated against that
extradition law bill that the Hong Kong Assembly is trying
to pass.
The population of Hong Kong is 7 Million, so 1 out of 7
demonstrated. It must have been very impressive
because the main land government is silent. And then the
Chief Executive of Hong Kong, went public and did a mea
culpa. I am sorry, we will listen to the voice of people.
That’s very seldom, it’s a mix of a totalitarian
government. And certainly, they want to, it’s already
under the mainland government, they could group under
the Tianamen Square and send in main land forces and it
can overpower people. But can you overpower 1 Million
people who demonstrated? The People’s Republic of
China, I think has over 2 Billion.
When you have a strike, it becomes very good cover for
the press and the TV. That is why in the bar exams for
labor, at least 50% of the coverage are labor relations,
even if it does not affect the 10% of the labor force. Very
few of our labor force are organized into unions. But
because it is high profile, that is why it is asked in the
examinations. That is why we also study it.
SOCIAL JUSTICE
Our labor laws are founded on social justice. That
particular thrust in the constitution, which is peculiar to
our constitution.
QUESTION: If you did not have the social justice thrust
in the constitution, could you still have labor laws? What
is its foundation?
ANSWER: It is obvious you can. Why? The US has labor
laws, in fact, most of our labor laws are copied from the
US. And the US constitution does not have social justice.
QUESTION: So, why do we say that our labor laws is
founded on Social Justice? What is the foundation of US
Labor laws since they do not have the social justice thrust
in the constitution?
HISTORY OF LABOR STANDARDS
All of you have taken up labor standards. That’s a copy
of the Labor Standards Act of the United States. Our Book
V of Labor Relations in the Labor Code is practically a
copy of the National Labor Relations Act of the US and
the National Labor Relations Railways Act. What is its
foundation? When did we copy?
You know, the US, came to the Philippines at the turn of
the century, not this century, the turn of the 20th
Century. Now we are in the 21st Century. At the turn of
the century, that was when Jose Rizal was shot in Luneta.
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ALABAN . AMPOG . DELA CERNA . ESTREMOS . LUZ . MANAAY . MANLIGOY . PAULMA . PEROY . PIZZARO . SANCHEZ . SUAREZ . TALON . TAN, B. . VILLAVICENCIO
That was the time when Commodore George Dewey
sailed into Manila Bay against Admiral Montojo (Battle of
Manila Bay). Ngano napildi man si Montojo? Magbanga
man ang kahoy ug yero. When wood and metal collide,
pildi gyud ang kahoy diba? Kanang gamiton nimo and
sundang diba, di napildi si Montojo.
And that is when the US occupied the Philippines. They
began to occupy. That was also the time in the US when
the industrial revolution began to take its foothold. The
factories began to hit up. And many of the abuses that
were committed in Germany, in France, in London, in
York, in Boston, in Philadelphia and all the early cities in
the US.
The US has the distinction of being one of the very first
few countries that was first founded on a law. Most
countries were a nation first before they were a state.
They began with kings and royalty in their history then
finally, they have a law. The MAGNA CARTA in the UK.
Constitutional Monarchies, France, Germany, etc. But the
US did not pass through that. They began with a piece of
paper. We hold these truths as self-evident – the
declaration of independence. And then they branched
out, then they filled up a good portion of the continent
which is North America.
Many of those who came, came from agricultural origins,
they were farmers. The irish left Ireland, because of the
potato famine. Wala na mutubo ilang patatas,
nangamatay na sila sa kagutom. Sakay sila ug barko, on
what is called indentured engagements. Now, it is called
indentured slavery. That is now, trafficking. What does
that mean? Naay taong ingon nimo, librehon kag
pamasahe, pag abot nimo didto, sugaton ka,
patrabahuon ka niya, hangtod makabayad ka sa imong
pamasahe.
Does that happen here in the Philippines? YES. Adto ka
sa Manila, bayran imong pamasahe, pero pag abot nimo,
trabahuan na nimo ang gibayad nga pasahe. Utangan ka
na daan. Indentured.
In fact, the first slaves were white, not black. The first
slaves were white and because they ran out of indentured
people, that is when some guy had the idea of getting
blacks. The first ones to get slaves were in South
America, in Brazil for the Spaniards, since they have
colonies in Africa. Why were they able to get so many?
Because Africans were so divided, they were at war with
each other. One tribe sold another tribe. They
accompanied the white traders and they overpower these
other tribes, loaded them on a boat and off they go.
THE INDUSTRIAL REVOLUTION
The industrial force was basically white, not black. The
blacks were in the plantations in the South. And then
there was civil war off course. But they were white, and
it was most pronounced in the textile, in the clothing
industry. They invented the spinning gin that could make
the cotton thread. Before you could make cotton by this
mechanical cycle which forms a thread (Spinning Wheel).
People make cloth by themselves. There was no cloth on
sale.
Now and then there would be traders that get in touch
with those that came from the silk road in China, bringing
in France’s silk to the west. But then you have to be
royalty to pay for that. If you were not royalty. You had
to be a rich businessman. You can find it in fares, kanang
mga pirya ba mangabot na sila, mamaligya. But there
was no store or supermarket. In the middle ages, that
was not present.
So, when the cotton gin was invented, there was an
insatiable demand for cotton cloth. And so, the factory
 LABOR RELATIONS
From the lectures of Father Agustin Nazareno
ATENEO DE DAVAO UNIVERSITY | COLLEGE OF LAW | 3-Manresa | S.Y. 2019-2020
In the US, the law is just to keep things in order because
everyone is presumed to stand on equal footing with the
other, that is the assumption.
Q: Is there minimum wage in the US?
A: Yes there is, and the minimum wage has been rising
and growing.
Q. Is there minimum wage in the Philippines?
A. Yes, we have had minimum wage since 1954, granting
minimum pay. The first minimum wage law was 4php a
day.
Q. Karun pila naman minimum wage?
A. It is now broken up into regions, under the RTWPB
(Regional Tripartite Wages and Productivity Board) that
puts out wage order.
Q. In Davao (Region 11), what is the minimum wage?
A. It is supposed to be 365 pesos, until the adjustment
last February 2019 which added 26 pesos a day. From
4php, it went to 365 diri lang sa Davao. Sa NCR, it is
already 500.
[NOTE: Based from the R11 Dole: previous min. wage:
355; current min. wage: 381]
Q. Has the social volcano has been remedied?
A. Far from it. It is still steaming, it is still about to burst
and the index of that is the growth of drugs.
Q. Who is correct? Is social justice thrust of the
Constitution has been effective?
A. Carried out to the extreme, that is communism. China,
what has happened to China? They say the biggest
number in the shortest period have been lifted
economically by the Chinese revolution. The highest
number that is quoted is 400M, the lowest number is
250M, that the Chinese has been lifted out of absolute
poverty. Absolute property means living on one dollar or
less a day.
Q. Is there minimum wage in China?
A. There is no minimum wage but the average wage
there is higher than here in the Philippines.
I'm telling you this because there are some of you here,
you will find your way to Congress as lawmakers or the
staff of lawmakers. You will draft a law for orphans, street
children, draft a law in their favor but they are not the
objects of social justice. They existed long before the
industrial revolution, they are the object of parens
patriae “the fundamental father of the state”. They are
not the objects of social justice, they are considered
temporary problems of the society, not structural
problem of society. But landless farmers, that is
structural. Minimum wage earners, that is structural. The
state must have a permanent posture of addressing them
by way of legislation, that is why there is SSS law, GSIS
law, minimum wage law, service incentive leave, 8-hr
work law, and etc. All these laws are aimed at the daily
laborer, those who earn by day, those who are covered
by the principle of no work no pay.
Parens patriae Orphans, street children
Social justice Landless farmers,
minimum wage earners
June 19, Part 3 [ ALABAN ]
In Labor Standards, the State, by legislation, fixes a
minimum of benefits that employees are entitled to. In
fact, you cannot below the standards e.g. minimum
wage. The contract entered into for consideration less
than minimum wage is void. You cannot waive you right
to labor standards. That is an exception to Autonomy of
Contracts — parties are free to whether or not to enter
contracts; free to stipulate such terms and conditions in
the contracts as is mutually agreeable provided it is not
contrary to morals, public customs, etc.
[3]
ALABAN . AMPOG . DELA CERNA . ESTREMOS . LUZ . MANAAY . MANLIGOY . PAULMA . PEROY . PIZZARO . SANCHEZ . SUAREZ . TALON . TAN, B. . VILLAVICENCIO
In Social Justice, workers are not free whether or
not to enter into contracts because if they don’t enter into
a contract, they would starve to death. They have to
enter into a labor contract because they neither have
land or resources or education by which they could earn
enough money and resources to support themselves they
have to sell their labor.
The law says you cannot enter into a labor
contract below a certain age; that is Labor Standards.
However, when you go to Labor Relations, the benefits,
wages and hours of work are determined by negotiation.
Employer and Employee Organization
The first one organized is the employer. Hardly
any employer now is a single proprietorship. Most
employers are now, juridical persons (e.g. corporations).
Under the new Corporation Code, you can even organize
a one-person corporation. Manny Pacquiao Inc. OPC. It is
a separate and distinct from Manny Pacquiao; the
number one employee of the corporation is Manny
Pacquiao. What is the purpose of the corporation? To
enhance the market value, earning capacity and wealth
generation of Manny Pacquiao. By incorporating himself,
he systematically reduces his taxable income because
everything (expenses) is charged to the corporation.
The employees when organized, it is a union and
there’s only 1 contract between those covered by the
union and the employer. Before the union, there were as
many contracts as employees. After the union, all
individual contracts cease. Kinsa man kabentaha
(advantaged) ana? Katong di mutingong o mga bati ug
trabaho malipay kay makarga man sya. Pero kadtong
naay abilidad o naay kakayahan, maguol sya sa union.
Situation: Tigputos ug mangga. Kintahay unionized sila.
Kadtong naay abilidad maguol sa union kay ang gusto
man niya per piraso . Kita na ba mo ug nagputos ug
mangga na isa ra ka kamot gigamit? That is highly skilled
work. Ang mga may abilidad parehas ana dili kinahanglan
ug union kay makaputos man silag 8,000-10,000 kada
adlaw. Pero kanang hinay-hinay, kana ang
magkinahanglan ug union.
Labor Relations Law naturally presumes that the
terms and conditions of work the are given to the workers
must be higher than Labor Standards. If it is lower, there
is presumption of irregularity. Why? Nganong nagsabot
pa man mo nga imoha naman ng benepisyo sumala sa
Labor Standards. Nganong muagi man kag kahago to
organize a union nya mao ra diay imong makuha; Labor
Standards/minimum wage lang gihapon. The law
presumes there is an irregularity and that is an unfair
labor practice.
The bias in the Constitution between organized
or unorganized labor is for labor to be organized because
theoretically it can get higher than it gets. The
economists will tell you that what gives you higher
benefits or compensation is higher productivity, and not
organization. Classical economists are not in favor if
union because they believe that it’s just an added cost.
However, know that our Constitution is in favor of unions.
Working for another has existed before there
were labor laws or industrial revolution. Ever since man
lived in an tribe, there was always labor for another. One
of the landmark cases that you should read even though
it is not a labor case is Perez vs Omar (1903). 1903 —
the occupation of the Americans and the beginning of the
effects of industrial revolution in the Philippines. This is
not yet labor legislation; this is just service performed
for another. There is service you perform for another and
not for yourself. Example of service to yourself is
combing your hair where you are both the subject and
 LABOR RELATIONS
From the lectures of Father Agustin Nazareno
ATENEO DE DAVAO UNIVERSITY | COLLEGE OF LAW | 3-Manresa | S.Y. 2019-2020
beyond that, you cannot negotiate your salary. There can
be no negotiation, no bargaining, and so no strike is
allowed.
In the United States, government employees are the
center where unionization is growing. In the private
sector, unionization is not growing. Especially in
municipal law, they accept that local government
employees are basically under contract with local
government. So policemen can form unions. They have
very subtle ways of negotiating an increase in their
salary. How do they negotiate? If the union leaders in the
bargaining table see no progress, they send the word to
the whole police force. [They say to] the whole police
force na dili sila manakop ug dili mangissue’g ticket
(overspeeding, wrong parking, etc.) isa ra ka adlaw.
Maguol ng city government kay wa ma’y income sa isa
ka adlaw (They say to the whole police force not to catch
anyone violating traffic laws and not to issue tickets. The
city government will be worried because there will be no
income for that day). [That is ] one way they subtly
negotiate their compensations.
Dinhi sa Philippines, di man ta makaingon ana (Here in
the Philippines we cannot say that) because we are
explicit in our Constitution [that] public office is a public
trust. It is not negotiable because it is not a property.
You cannot bind them. Your position in government is
really a sacred trust. You are a trustee. Who has
entrusted you that? The state. To whom do you answer?
The people of the Republic of the Philippines. They are
the beneficiaries. So you are exalted to live a simple life
and to observe honesty, industry, and so on.
Thank God that cannot be done. You know in the United
States, there have been 11 major cities and counties that
have gone bankrupt because of collective bargaining.
Kung ikaw mayor ka, naay collective bargaining tas gusto
ka ma-elect, grab nimo. Niya wa may taxes nga mutubag
ana, di mangutang, float kag bonds. Nya daghan man
kaayog utang dili na maservice. Wa na, declare kag
bankruptcy. Detroit. Kadako ana. Nahapay. Mas dali man
muhatag ang mayor or elected official. Kay ngano man?
Mayor: In 4 years, I won’t be there
(If you want to be elected as mayor and there is collective
bargaining, you will likely grab that. Since there are no
taxes to shoulder the costs of that, you will be forced to
incur debts. When there is too much debt which cannot
be paid, bankruptcy will be declared. It is easier for a
mayor or an elected official to give because they won’t
be in the post for the next 4 years.)
Collective bargaining cannot be done in non-proprietary
situations. The basic trustee is the highest elected
official. Now if he asks as if he owns the resources of the
city, patay.
Have you gone to Orange County in Southern California?
Kadatu ana. Klase klaseng iro ang guyuron dira. Klase
klaseng sakyanan nga hastang pagkasinawa. Ang langaw
gud mutugpa, maslide. Pagkagwapo sa sakyanan,
nahapay. Now they are rethinking collective bargaining.
Imagine an assembly clad worker in Detroit has a higher
rate than a registered nurse. Wa na silay degree ha. Di
gani ka kinahangla’g high school ana. Sailang collective
bargaining, they include health benefits even of retired
workers. Hangtod ka mamatay naa kay health benefits.
Pagkalisud ana. The liabilities for health benefits of
retired workers of general motors was bigger than the
entire base of Toyota, the Japanese car company. That
was just because of collective bargaining that went on for
so many years. How did they get out of it? Gibayran nila
tanang retired. Nangutang sila sa gobyerno. Bilyon.
Compromise ba.
[5]
ALABAN . AMPOG . DELA CERNA . ESTREMOS . LUZ . MANAAY . MANLIGOY . PAULMA . PEROY . PIZZARO . SANCHEZ . SUAREZ . TALON . TAN, B. . VILLAVICENCIO
Ikaw, pila na imung edad? Singkwenta. They go to a
particular table, they forecast the likelihood kung mabuhi
pakag napulo pa ka tuig. Then compute-on ang average
health cost nimo, bayran ka aron mahuman. Mao nay
gibuhat. Gipalit ang liabilities. Nabagsak [ang
kompanya]. Kinsa namay number one karun? Toyota
(You, what is your age? 50. They forecast your life
expectancy; they will compute your average health cost
and you will be paid based on that. They paid all the
liabilities which caused the company’s downfall. Who is
now number 1? Toyota). Just like all systems, it is not
guaranteed.
June 20 Part 1 [ ESTREMOS ]
Promotional Merchandisers
Add two cases to your list of cases for employer-
employee relationship:
1. Tabas vs. California Manufacturing Company
(GR No. L-80680, January 26, 1989, J.
Sarmiento)
2. Fonterra Brands Phils., Inc. vs. Largado (GR No.
205300, March 18, 2015, J. Velasco, Jr.)
Why these two cases? Because these deal with one of the
problems of employer-employee relationship and that is
contracting and subcontracting.
Now, there is no problem with respect to certain functions
that are enumerated by the Supreme Court in En Banc
decisions of Kimberly Independent Labor Union vs. Drilon
(1990) and Neri vs. NLRC (1993).
The Supreme Court has said, “This court takes judicial
notice of the widespread practice of contracting and
subcontracting in the private as well as the public sector
in cases of security services, janitorial services,
maintenance services, and other technical services.” So,
no problem with comes to janitorial, security, etc.
But, what is problematic? How about the so-called
merchandisers? That is first delved with in Tabas v.
Californa Manufacting.
TABAS v. CALIFORNIA MANUFACTURING
GR L-80680, Janauary 26, 1989
Facts: California Manufacturing introduces so many
food brands. Here, you have merchandisers.
There’s a whole range of merchandisers. At the
bottom are the so-called “special offer
merchandisers.” Lagum gani ug panit (ang
merchandiser), special offer na. Mao nang
nagalakaw house-to-house. “Bagong new,
improved Tide.” They create this sales boost.
In the beginning, it was temporary. Branded
promotions for about six months. But the same
group of merchandisers were moved from one sales
or promotional program [to another] three times,
yet they’re serving for two years.
Held: The SC says that is not an activity which can
be contracted out. It is an activity which is usual
and necessary to the usual business of the
employer. So therefore, the contracting was
contrived in order to escape the burdens of regular
employment.
The ruling in Tabas is merchandisers cannot be
contracted out. That is 1989.
 LABOR RELATIONS
From the lectures of Father Agustin Nazareno
ATENEO DE DAVAO UNIVERSITY | COLLEGE OF LAW | 3-Manresa | S.Y. 2019-2020
Kung mu-abot na sa Labor Arbiter, does the Labor Arbiter
have jurisdiction? Ingon baya ang Supreme Court, it does
not matter whether you are in the government. You are
liable because the law imposes the employer-employee
relationship. Once there is a deficiency, whether it is
labor-only contracting or bona fide contracting, if there is
failure of payment of wages or underpayment to the
seconded employees, it is the indirect employer who
must answer.
Mu-ingon gani ang indirect employer, “Husto man akong
bayad sa manpower agency. Gibayran man nako sa
husto. Siya (manpower agency) na dapat mubayad.”
What was the answer of the Supreme Court? You
(indirect employer) pay, without prejudice to a third-
party complaint for them to reimburse you because you
already paid them.
In the same case, where you respond to the complaint of
the seconded employees, if you are the indirect
employer, you can ask for reimbursement from the
contractor if you already paid the contractor.
But if there is no employer-employee relationship and
you ask the contractor to give back what you have paid,
because you already paid the employees. You ask for
payment for what was lacking with the pay. Can you go
the Labor Arbiter, so that the contactor will reimburse the
indirect employer? You cannot. Why? Because there is no
employer-employee relationship between the contractor
and the indirect employer. Between Fonterra and
Manpower Agency, there is no employer-employee
relationship. It may be a contract of service. Who has
jurisdiction? The regular courts. You go the regular
courts.
So, most Bar examinations, there is always one question
in contracting and subcontracting. That is the trend.
Contracting and Subcontracting vis-à-vis the Call
Center Industry
The call center industry is about 23-24 Billion Peso a
year. Manghod lang na gamay sa OFW. The OFW is
already 29 Billion Peso a year. Mao na nagkup ot sa
ekonomiya sa Pilipinas. Kanang duha: call center and
OFW. Mawagtang gani na, mingaw kayo mga Jollibee.
*Father relates to OFWs and relatives eating at Jollibee*
The call center is a segmented phase of the work. They
are just answering complaints, servicing orders of
customers, etc. of far and far away lands, in the US or
Australia.
That is a product of contracting and subcontracting.
June 20 Part 2 [ PAULMA ]
iPhone, that is Apple. Apple just announced that 18% of
their suppliers in China for this iPhone is going to be
moved from China to somewhere in Southeast Asia. How
many people are involved there if it's 18%? Can you
believe? It's 5 million people in China that will lose their
jobs because it's going to be moved to Vietnam or
Malaysia or Thailand. 5 million jobs; because jobs are
already segmented.
There's a pending law in Congress about subcontracting.
Mu-pass gani to, they are serious about their jobs but
they are not serious about the economy. Kanang ending
ENDO? Tell that to the Marines. If you still insist on no
longer contracting out work, you don't know modern
industry. You wish it could not be the case but it is
already the case. Work is undergoing revolution. It can
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ALABAN . AMPOG . DELA CERNA . ESTREMOS . LUZ . MANAAY . MANLIGOY . PAULMA . PEROY . PIZZARO . SANCHEZ . SUAREZ . TALON . TAN, B. . VILLAVICENCIO
be segmented and it can be exported. Just like capital
that flows in borders, manpower can flow depending on
where the jobs are because of contracting and
subcontracting. That is why there is so much interest in
it. Very important - you master the principles. It's not
just an ordinary employer-employee contracting. It is
contracting and subcontracting.
I have told my class before that the ruling of the SC of
sufficiency of capital, if you do not have sufficient capital
or sufficient investment of goods (it's either/or, you just
have to prove one) -
Sufficiency of capital - normally you go to the SEC and
get the reincorporation papers, you get the paid-up
capital, that is the real capital that the company has at
its disposal, paid up capital.
- SC says, if you have P250,000 paid-up capital and your
contract for services is Php2M, you are insufficiently
capitalized. That is if you are thinking about manual jobs,
janitorial service, security guards, etc - the real factories
of contracting. What if you are talking about computer
jobs? A company adopts a new computer system, very
large database. And the one who would install it is
someone you would contract-out. What is their capital?
Zero. These people who would install it, they are paid $80
or $90 an hour. What equipment will they use? They will
use the indirect employer's own equipment. They will
suggest the equipment. Once it's there, they will
configure the equipment. Unsa man ilang capital? That
which is between their ears. That is their capital - their
know-how. Most of them came from big computer
companies and then they form their own company, and
now they enter into contracts. They will not pass the test
of the Supreme Court. They will be labor-only contractors
and yet they are not labor-only contractors. They are
merely contractors. That is the shortcoming of the law.
Read these cases, where exactly did the SC change its
mind? How did it change its mind?
(California and Fonterra cases).
Karon, the least profitable of businesses is retail, gagmay
man kaayo na ug margins ang retail. Gaka-grabe ang
competition ana. Sudlan pa sa online selling, samot na
grabe ang competition. That is why for the first time, you
have this so called supply chain management. The
producer himself introduces a manager who will teach
you how to stock up on his goods, how to finance it. Dili
lang sa material cost, unsaon pud ninyo pag finance ana
aron gamay ra'g kwarta mabutang nimo. Supply-chain.
Mao na, algorithm na. That's why it is crucial. I'll leave it
to you to read up on these case besides the other cases
we have on employer-employee relationship.
Labor Relations Overview
Labor relations proper begins with the right to self-
organization. The right to self-organization is a personal
right. First, you have to be a person. You have to be a
natural person, not a juridical person (referring to
employee). You cannot enter into employer-employee
relationship with a juridical person. If you do, it is called
a management contract under the corporation code.
Employer-employee relationship, natural person. The
employer can be a natural person or a juridical person.
The employee must be a natural person. A monkey which
does labor cannot demand payment because he is not a
person. It is only a person that can be the subject of
rights and obligations.
Do all people have the right to self-organization?
POTENTIALLY, all people have the right to self-
organization. Just like potentially, all females have the
right to marry. But if nobody is offering to marry you,
 LABOR RELATIONS
From the lectures of Father Agustin Nazareno
ATENEO DE DAVAO UNIVERSITY | COLLEGE OF LAW | 3-Manresa | S.Y. 2019-2020
render service? But you are an employee! Mao bitaw
nang nag-sick leave ka. This is the same with the ruling
of the SC in the FEU case. For 15 years, he was serving
another. But the SC said – are you going to fault him for
not looking for work so he could earn to feed his family?
That was made necessary by the unjust termination of
his employer. So, while he was not serving the employer
and he was serving another, that does not put an end to
the original ER-EE relationship that he had with his first
employer. So he was ordered reinstated with complete
backwages. Pagka-nindot kay gi-swelduhan na siya sa
Central Bank, naa pa diay siya’y sweldo sa iyang isa ka
employer who unjustly terminated him. Double
compensation. That was awarded as punitive damages
because an unfair labor practice was committed – which
we will take up later.
Keep that in mind ha – the requisite is the ER-EE
relationship. Without that, you cannot form a union and
you cannot join a union. Take a look at Article 252. This
is the definition of the right to self-organization.
Article 252. Coverage and employees’ right to self-
organization. All persons employed in commercial,
industrial and agricultural enterprises and in religious,
charitable, medical, or educational institutions, whether
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 of
collective bargaining. Ambulant, intermittent and
itinerant workers, self-employed people, rural workers
and those without any definite employers may form labor
organizations for their mutual aid and protection.
There are 2 sentences here, but only 1 sentence talks
about the right to self-organization – All persons
employed in commercial, industrial and agricultural
enterprises and in religious, charitable, medical, or
educational institutions, whether 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 of collective bargaining.
So – when you join an organization whose purpose is
collective bargaining, then you are exercising your right
to self-organization. That organization that you joined
need not be exclusively for collective bargaining. Why?
Because under Article 219(g):
Article 219(g): “Labor organization” means any
union or association of employees which exists in whole
or in part for the purpose of collective bargaining or of
dealing with employers concerning terms and conditions
of employment.
So – the purpose of the labor organization that you are
joining, need not be exclusively for collective bargaining,
as long as it includes collective bargaining. That is what
makes it an exercise of the right to self-organization –
when the organization that you joined is for purposes of
collective bargaining – in part, or in whole.
June 26 Part 2 [ PIZARRO ]
Now, the second sentence of Article 252 of the Labor
Code says “ambulant, intermittent and itinerant workers,
self-employed people, rural workers, and those without
definite employers may form labor organizations for their
mutual aid and protection.” Now, that second sentence is
no longer right to self-organization; that is freedom of
association. It is not for the purpose of collective
bargaining; it is for the exercise of freedom of
association. This time, the organization that you are
[9]
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joining is for mutual aid and protection – “mutual
benefit.”
Do you need employer-employee relationship in the
exercise of freedom of association as a worker? You do
not! It is because (it) talks about self-employed people
(who have no employers, obviously), rural workers, and
those without any definite employer. So, to exercise the
right to freedom of association, you do not need an
employer-employee relationship! Everybody has this
(right to freedom of association)! Now, that is important
to distinguish because, when you come to think of it,
what makes a labor organization A LABOR
ORGANIZATION is not the membership but THE
PURPOSE. If (a) your purpose is collective bargaining, or
(b) included in your purpose is collective bargaining, then
you are exercising a protected right. You are exercising
self-organization. Now, if there is no collective bargaining
in the purpose of the organization you are joining, then,
in the language of the Labor Code, you are forming a
“workers’ association.” It has a different kind of
registration, and it is for mutual aid and protection.
Question: What is an example of mutual aid and
protection?
Answer: (scenario given by Fr. Nazareno) There is an
organization in this workplace that is inviting
membership.
What do you do in that organization? It’s a “mortuary
organization.” You make contributions yearly, monthly
(that depends on you). But, you make regular
contributions. And (they) agree that whoever member
who dies obtains a certain lump-sum. “Magpamyembro
ka gani ana, wa ka magdahum nga ikawng makakuha sa
lump-sum! Diba?! Mao na ang organization nga wa ka
magdamgo nga, wa ka magambisyon nga makuha ang
imung ghatag.” That is, in effect, MUTUAL AID to help
your family through these difficult times (when you die).
The deceased’s family receives the benefit! “That’s the
type of organization nga ganahan ka nga sige pa ka ug
contribute. Maundang gani ka, wa na!”
Now, this second type of organization, called workers’
association by the implementing rules of the Labor Code:
(a) does not require employer-employee
relationship; and
(b) cannot be limited (because the freedom of
association is found in the Bill of Rights).
Precisely, Article III, Section 8 of the 1987 Constitution
is freedom of association – not the right to self-
organization:
Section 8. The right of the people, including those
employed in the public and private sectors, to form
unions, associations, or societies for purposes not
contrary to law shall not be abridged.
The foregoing clause in the Bill of Rights is not the right
to self-organization; this is the right to freedom of
association!
Now, to understand it more deeply, I would advise you
to read PAFLU v. Secretary of Labor, and then you
contrast that with the decision of the Supreme Court 20
years later in United Pepsi-Cola v. Laguesma. PAFLU was
written by C. J. Roberto Concepcion. United Pepsi-Cola
was written by J. Vicente Mendoza. Both are
constitutionalists. Take a look at the depth and the
profundity of reasoning between the two decisions.
(. . .CJ Roberto Concepcion penned the decision in the
case of Javellana v. Executive Secretary, after which he
resigned as Chief Justice. . .)
 LABOR RELATIONS
From the lectures of Father Agustin Nazareno
ATENEO DE DAVAO UNIVERSITY | COLLEGE OF LAW | 3-Manresa | S.Y. 2019-2020
possession of the "rights and privileges granted by law to
legitimate labor organizations". The Constitution does not
guarantee these rights and privileges, much less said
personality, which are mere statutory creations, for the
possession and exercise of which registration is required
to protect both labor and the public against abuses,
fraud, or impostors who pose as organizers, although not
truly accredited agents of the union they purport to
represent. Such requirement is a valid exercise of the
police power, because the activities in which labor
organizations, associations and union of workers are
engaged affect public interest, which should be
protected. Furthermore, the obligation to submit financial
statements, as a condition for the non-cancellation of a
certificate of registration, is a reasonable regulation for
the benefit of the members of the organization,
considering that the same generally solicits funds or
membership, as well as oftentimes collects, on behalf of
its members, huge amounts of money due to them or to
the organization.
UNITED PEPSI-COLA SUPERVISORY UNION
(UPSU) v. LAGUESMA
G.R. No. 122226; March 25, 1998
Mendoza, J. (EN BANC)
FACTS:
Petitioner is a union of supervisory employees. It appears
that on March 20, 1995 the union filed a petition for
certification election on behalf of the route managers at
Pepsi-Cola Products Philippines, Inc. However, its petition
was denied by the med-arbiter and, on appeal, by the
Secretary of Labor and Employment, on the ground that
the route managers are managerial employees and,
therefore, ineligible for union membership under the first
sentence of (then) Art. 245 of the Labor Code, which
provides:
Art. 245. Ineligibility of managerial employees to
join any labor organization; right of supervisory
employees.— Managerial employees are not eligible to
join, assist or form any labor organization. Supervisory
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 organizations of their own.
Petitioner brought this suit challenging the validity of the
order dated August 31, 1995, as reiterated in the order
dated September 22, 1995, of the Secretary of Labor and
Employment. Its petition was dismissed by the Third
Division (of the Court) for lack of showing that
respondent committed grave abuse of discretion. But
petitioner filed a motion for reconsideration, pressing for
resolution its contention that the first sentence of Art.
245 of the Labor Code, so far as it declares managerial
employees to be ineligible to form, assist or join unions,
contravenes Art. III, Section 8 of the Constitution which
provides:
Section 8. The right of the people, including those
employed in the public and private sectors, to form
unions, associations, or societies for purposes not
contrary to law shall not be abridged.
For this reason, the petition was referred to the Court en
banc.
ISSUE:
Whether Art. 245 of the Labor Code, insofar as it prohibits
managerial employees from forming, joining or assisting
labor unions, violates Art. III, Section 8 of the
Constitution.
RULING:
NO.
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This provision (Art.245) is the result of the amendment
of the Labor Code in 1989 by R.A. No. 6715, otherwise
known as the Herrera-Veloso Law. Unlike the Industrial
Peace Act or the provisions of the Labor Code which it
superseded, R.A. No. 6715 provides separate definitions
of the terms “managerial” and “supervisory employees,”
as follows:
ART. 212. Definitions. . . .
(m) “managerial 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, recall, discharge, assign or discipline employees.
Supervisory employees are those who, in the interest of
the employer, effectively recommend such managerial
actions if the exercise of such authority is not merely
routinary or clerical in nature but requires the use of
independent judgment. All employees not falling within
any of the above definitions are considered rank-and-file
employees for purposes of this Book.
Although the definition of “supervisory employees”
seems to have been unduly restricted to the last phrase
of the definition in the Industrial Peace Act, the legal
significance given to the phrase “effectively
recommends” remains the same. In fact, the distinction
between top and middle managers, who set management
policy, and front-line supervisors, who are merely
responsible for ensuring that such policies are carried out
by the rank and file, is articulated in the present
definition. When read in relation to this definition in Art.
212(m), it will be seen that Art. 245 faithfully carries out
the intent of the Constitutional Commission in framing
Art. III, Section 8 of the fundamental law. Nor is the
guarantee of organizational right in Art. III, Section 8
infringed by a ban against managerial employees forming
a union. The right guaranteed in Art. III, Section 8 is
subject to the condition that its exercise should be for
purposes “not contrary to law.” In the case of Art. 245,
there is a rational basis for prohibiting managerial
employees from forming or joining labor organizations.
As Justice Davide, Jr., himself a constitutional
commissioner, said in his ponencia in Philips Industrial
Development, Inc. v. NLRC:
In the first place, all these employees, with the
exception of the service engineers and the sales force
personnel, are confidential employees. Their
classification as such is not seriously disputed by PEO-
FFW; the five (5) previous CBAs between PIDI and PEO-
FFW explicitly considered them as confidential
employees. By the very nature of their functions, they
assist and act in a confidential capacity to, or have access
to confidential matters of, persons who exercise
managerial functions in the field of labor relations. As
such, the rationale behind the ineligibility of managerial
employees to form, assist or joint a labor union equally
applies to them.
In Bulletin Publishing Co., Inc. v. Hon. Augusto
Sanchez, this Court elaborated on this rationale, thus:
“. . . 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 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 the presence of managerial
employees in Union membership.”
To be sure, the Court in Philips Industrial was dealing
with the right of confidential employees to organize. But
the same reason for denying them the right to organize
justifies even more the ban on managerial employees
from forming unions. After all, those who qualify as top
or middle managers are executives who receive from
their employers information that not only is confidential
 LABOR RELATIONS
From the lectures of Father Agustin Nazareno
ATENEO DE DAVAO UNIVERSITY | COLLEGE OF LAW | 3-Manresa | S.Y. 2019-2020
cannot enforce. You are conflicted. On the one hand, you
are naturally and inherently to save yourself from any
kind of destruction. On the other hand, you sworn to tell
the truth. So the law gives you the right not to
incriminate yourself. This constitutional right is funded on
Conflict of Interest.
Confidential Employee
It is not in the law that Confidential Employee are also
absolutely prohibited.
Question: Why are they absolutely prohibited?
Answer: You read the Planters Bank case,
Supervisor of....??? vs Secretary 239 SCRA 546.
This is were the SC lay down the Rule of Necessary
Implication. Since confidential employees are in the
same position as managerial, they prone to conflict of
interest, then it is as if they are included explicitly by the
law.
The Doctrine of Necessary Implication, it is not
only found in labor law, it is also found in civil law.
Husbands and wives cannot donate to each other to avoid
undue and improper influence. Now, what if you are not
married. You are not married, you are living as H and W
without getting married. Are you also covered by that
prohibition? Yes! Because you are in the same position.
There is still possibility of undue and improper influence.
So, according to JBL Reyes, it is as if you are explicitly
excluded by the law.
Supervisory Employees
They have limited right to self organization.
Question: Who are SE?
Answer: They are those who carry out managerial
powers. They have the power to effectively recommend
the discipline, transfer and promotion of employees. They
cannot decide it, but they can effectively recommend.
They are the front line managerial employees.
So the law says they can form union for purposes
collective bargaining but they cannot join the rank-and-
file. They can only form a union among themselves. So
limited right to self organization.
Now, who enjoys, it suppose to be rank-and-file
employees but you have to reconcile the rank-and-file
with the inclusion or exclusion with bargaining unit.
The manuscript that a pedestrian says: The
Union represents the workers of the employer. That is
incorrect legally, because the union only represents the
bargaining unit. But the bargaining unit must first be
defined. Supervisory bargaining unit is exclusive, that is
mandated by law. Only supervisors, you cannot put in
other people. You can have bargaining unit of daily paid
workers, production workers, sales personnel.
Now small and basic pay commission as part of
their compensation structure, that is another form of
bargaining unit. You cannot be part of unit of monthly
paid administrative workers.
So, when the labor code says that for purposes
of forming/joining a union, Article 291 (Father says 291,
pero 277 sya sa lawphil) “ Any employee, whether
employed for a definite period or not, shall, beginning on
his first day of service, be considered as an employee for
purposes of membership in any labor union.”
COMMENT NI FATHER: That has
qualified!!
If you are within the bargaining unit that is
represented by the union. If you are outside, then you
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cannot demand as a matter of right to join the union for
purposes of collective bargaining because that is not
represented by the union.
Note: It doesn’t matter whether probationary or regular
because according to the law, any employee whether
employed for a definite period or not.
Question: What if suppose the bargaining unit is made
up of regular employees. You are still probitionary, can
you demand that you be included to the union for
purposes of collective bargaining?
Answer: You cannot! You cannot make it a matter of
right because you are not regular. You are excluded from
the bargaining unit. Pay attention to that ha. Your
inclusion/exclusion to the bargaining unit matters. Kana
gud sugod sa bargaining unit.
Example1: Gawas gani ka, wala man kay labot. Og gusto
jud ka mag exercise sa imuhang right to self
organization, pagbuhat og laing bargaining unit dira
representing your line of position. Unsa manang imohang
position? Managerial ko, administrative, white collar. Ha-
in man ka nagtrabaho? Naa man kos accounting. You
organize among administrative worker.
Example2: Tigkuan bya kos mga sweldo. Tig tan-aw og
okey ba or ultimo ra ang sweldo, that doesnt make you
a confidential employee. But if you are the confidential
employees payroll master, di ka makahimo, you are
excluded.
Example3: HR, can I be a member of the union? Di
supervisor, di pud manager, unsa man ka kung HR ka?
Ikaw mu-administer kung naay nag-away dira. grievance
arising from the CBA. You will be excluded. Ikaw may
hearing officer, can you bi unbias? Problema mana. There
are decisions of the Supreme Court.
Does age limit the right to self-organization?
Dili ng mga tigulang ha! 90 years old naman ko, ah
retirement na na. Kanang bata ba?
Lowest employable age is 15 diba? That is not yet
age of majority. So by minority, are you in equal
possession to form a union as the worker next to you who
is already 18 years old or above. The family code says
that mere minority should not inhibit you from union.
The problem is, you cannot be an officer because
an officer must act with legal effect in its submission
under oath. they attest to certain acts perform by the
union. You cannot do that if you are a minor. You cannot
act in full legal capacity. So, you can be member of the
union but you cannot be elected as an officer of the union
for as long as you don’t reach the age of majority.
June 26 Part 4 [ TALON ]
ALIENS
Q: Can you be a member of a union if you are an alien?
1. First of all, if you are an alien you cannot work
immediately. You have to have number one, a
working visa (which you’ve learned in labor
standards) issued by the Bureau of immigration.
2. Next, you must have a work permit which is
issued by the Department of Labor. That work
permit is employer specific (you cannot use it to
to be another employer) because you are a certified
employee.
3. There has to be an advertisement for your
position.
[ 13 ]
 LABOR RELATIONS
From the lectures of Father Agustin Nazareno
ATENEO DE DAVAO UNIVERSITY | COLLEGE OF LAW | 3-Manresa | S.Y. 2019-2020
If the corporation has an original charter (meaning,
congress passed a law creating such corporation) then no
union can be formed
READ Landmark Case of Philippine Society for the
Prevention of Cruelty to Animals vs. COA [
534S112, 2007, En Banc, Austria-Martinez)
FACTS:
• PSPCA has an original charter from the
original legislative body prior to the
commonwealth era. An act of the US
congress. To enforce the anti-animal cruelty
law.
• Why did it become controversial? For almost
a hundred years?
• Nagka-kwarta man na sila gikan sa donations
from the US.
• To buy all these dogs and save them.
• Si COA, di man katulog, naka hearing. Need
na daw i-audit and kwarta. Kay with original
charter man.
• Karon dili man magpa-audit ang PSPCA
ISSUE: WON they are government corporation?
RULING:
[ No ]
When you go with the yardstick of the 1987
Constitution, they are. Because they are created with
original charter.
But even if they have an original charter, they are
not a government corporation. That is why the
Supreme Court said that the charter test is applied
prospectively not retrospectively.
Thus, they are covered by the Labor Code.
RED CROSS as SUI GENERIS CORPORATION
Dati duha lang ang classification. Private lang and public
corporation.
Karon naa nay ika-tulo.
That is the case of Gordon vs. Liban. (Please read the
case)
June 27 Part 1 [ TAN ]
Government Employees
EXECUTIVE ORDER NO. 180 June 1, 1987
PROVIDING GUIDELINES FOR THE EXERCISE OF THE
RIGHT TO ORGANIZE OF GOVERNMENT EMPLOYEES,
CREATING A PUBLIC SECTOR LABOR-MANAGEMENT
COUNCIL, AND FOR OTHER PURPOSES
In accordance with the provisions of the 1987
Constitution, I, CORAZON C. AQUINO, President of the
Philippines, do hereby order:
I. Coverage
Sec. 1. This Executive Order applies to all employees
of all branches, subdivisions, instrumentalities, and
agencies, of the Government, including government-
owned or controlled corporations with original
charters. For this purpose, employees, covered by this
[ 15 ]
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Executive Order shall be referred to as "government
employees".
Sec. 2. All government employees can form, join or
assist employees' organizations of their own choosing
for the furtherance and protection of their interests.
They can also form, in conjunction with appropriate
government authorities, labor-management
committees, works councils and other forms of
workers' participation schemes to achieve the same
objectives.
Sec. 3. High-level employees whose functions are
normally considered as policy-making or managerial
or whose duties are of a highly confidential nature
shall not be eligible to join the organization of rank-
and-file government employees.
Sec. 4. The Executive Order shall not apply to the
members of the Armed Forces of the Philippines,
including police officers, policemen, firemen and jail
guards.
II. Protection of the Right to Organize
Sec. 5. Government employees shall not be
discriminated against in respect of their employment
by reason of their membership in employees'
organizations or participation in the normal activities
of their organization. Their employment shall not be
subject to the condition that they shall not join or shall
relinquish their membership in the employees'
organizations.
Sec. 6. Government authorities shall not interfere in
the establishment, functioning or administration of
government employees' organizations through acts
designed to place such organizations under the control
of government authority.
III. Registration of Employees' Organization
Sec. 7. Government employees' organizations shall
register with the Civil Service Commission and the
Department of Labor and Employment. The application
shall be filed with the Bureau of Labor Relations of the
Department which shall process the same in
accordance with the provisions of the Labor Code of
the Philippines, as amended. Applications may also be
filed with the Regional Offices of the Department of
Labor and Employment which shall immediately
transmit the said applications to the Bureau of Labor
Relations within three (3) days from receipt thereof.
Sec. 8. Upon approval of the application, a registration
certificate be issued to the organization recognizing it
as a legitimate employees' organization with the right
to represent its members and undertake activities to
further and defend its interest. The corresponding
certificates of registration shall be jointly approved by
the Chairman of the Civil Service Commission and
Secretary of Labor and Employment.
IV. Sole and Exclusive Employees' Representatives
Sec. 9. The appropriate organizational unit shall be the
employers unit consisting of rank-and-file employees
unless circumstances otherwise require.
Sec. 10. The duly registered employees' organization
having the support of the majority of the employees in
the appropriate organizational unit shall be designated
as the sole and exclusive representative of the
employees.
Sec. 11. A duly registered employees' organization
shall be accorded voluntary recognition upon a
showing that no other employees' organization is
registered or is seeking registration, based on records
 LABOR RELATIONS
From the lectures of Father Agustin Nazareno
ATENEO DE DAVAO UNIVERSITY | COLLEGE OF LAW | 3-Manresa | S.Y. 2019-2020
history. Thus, your organization does not admit to any
other organization mediating its members with the
command structure.
SOLE AND EXCLUSIVE REPRESENTATIVE
Sec. 10. The duly registered employees' organization
having the support of the majority of the employees in
the appropriate organizational unit shall be designated
as the sole and exclusive representative of the
employees.
Sole and Exclusive Representative as to Labor
Organization
With respect to the full possession of right to self-
organization, you begin as a labor organization, with the
purpose to enter into collective bargaining. You first
register in order to become a legitimate labor
organization. Then you request for a petition of
certification election for a given bargaining unit. If you
win the certificate election, then you become the
exclusive bargaining agent. Now, you can demand the
management to sit down with you to negotiate the terms
and conditions of work. Before, the management only
sends the employee piece of paper, the refusal to sign
results to the employee being ousted. That’s the status
of an individual employment. But if the employees are
organized, it is now the union who sits down with the
management.
This kind of exclusivity means that no other union can
enter into the group of employees (bargaining unit) you
are representing. You exclude the whole world, being the
exclusive and sole representative of that bargaining unit.
Upon becoming a legitimate labor organization, the
organization now has a separate and distinct personality
from its members. This means the organization can now
own property and can bring suit, because it can now be
subject to rights and obligations upon its legitimacy.
Sole and Exclusive Representative as to Employees’
Organization
As to the government sector, first you are an employees’
organization. Upon registration, you become a legitimate
employees’ organization. When you are certified as an
exclusive bargaining agent, then you become a sole and
exclusive representative. Now you can enter into
negotiations with the government, and what you produce
is not a CBA, but a CNA (Collective Negotiation
Agreement).
REGISTRATION OF EMPLOYEES’ ORGANIZATION
Sec. 7. Government employees' organizations shall
register with the Civil Service Commission and the
Department of Labor and Employment. The application
shall be filed with the Bureau of Labor Relations of the
Department which shall process the same in
accordance with the provisions of the Labor Code of
the Philippines, as amended. Applications may also be
filed with the Regional Offices of the Department of
Labor and Employment which shall immediately
transmit the said applications to the Bureau of Labor
Relations within three (3) days from receipt thereof.
Sec. 8. Upon approval of the application, a registration
certificate be issued to the organization recognizing it
as a legitimate employees' organization with the right
to represent its members and undertake activities to
further and defend its interest. The corresponding
certificates of registration shall be jointly approved by
the Chairman of the Civil Service Commission and
Secretary of Labor and Employment.
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Venues where to file a petition to be registered as an
organization of government employees
• Civil Service Commission; and
• The Bureau of Labor Relations of the DOLE
The reason for this is because the Civil Service does not
have the mechanics and competence to deal and
maintain a roster of unions. So you have to go to the BLR.
If there is an intra-union or inter-union controversy
regarding the legitimate employees’ organization, the
jurisdiction does not lie with the CSC because of the very
same reason, but again with the BLR.
PUBLIC SECTOR LABOR MANAGEMENT COUNCIL
Sec. 15. A Public Sector Labor Management Council,
hereinafter referred to as the Council, is hereby
constituted to be composed of the following:
1) Chairman, Civil Service Commission Chairman
2) Secretary, Department of Labor and Employment
Vice Chairman
3) Secretary, Department of Finance Member
4) Secretary, Department of Justice Member
5) Secretary, Department of Budget and Management
Member
The Council shall implement and administer the
provisions of this Executive Order. For this purpose,
the Council shall promulgate the necessary rules and
regulations to implement this Executive Order.
If there is a controversy that arises from the CNA, the
jurisdiction lies with the body created by EO 180, namely
the PSLMC. The chairman is the Civil Service Chairman.
The secretary is the Secretary of Labor. The members are
the Secretaries of Finance, DOJ, and DBM. So it is made
up of five cabinet-level members. To see how this works,
read the case of Pamantasan ng Lungsod ng Maynila v.
Civil Service Commission (1995).
As far as government employees are concerned, namely
the employees of the national government, employees of
the agencies of government (ex. the National Internal
Revenue Bureau) (END OF PART A)
June 27 Part 2 [ VILLAVICENCIO ]
..like the National Internal Revenue Bureau or
instrumentalities like the Court of Appeals. The Court of
Appeals’ employees have a union. Their union is called
ACAE- Association of Court of Appeals’ Employees. Their
rival is CACAE- Concerned Association of Court of
Appeals’ Employees. Naa nag ani ng “Concerned” unsa
man na? Concerned- genuine.
In this case the president of ACAE is our alumna. She
became an employee of the Court of Appeals and ran for
president for the employees’ organization and she won.
And then there’s this rival group and they fight. The
Bureau of Labor Relations decided to hold an election
because of a petition filed by the Court Administrator.
When the Bureau of Labor Relations election officer
arrived with a restraining order issued by the Court of
Appeals, because the president of the association filed a
restraining order (petition) to stop the BLR and the
ground is constitutional. What could be the ground that
is constitutional? By noble argument. He says we are in
the judiciary. It is a separate branch from the executive
branch of government. Both equal. The BLR is a Bureau
of a department of the executive- Department of Labor.
How come they can cross and come here and interfere
with a co-equal branch of government.
So when she asked for a restraining order and she was
issued, by the Court of Appeals. Ang iya ra man sad
justice na iyang gi sultihan mao iyang gi file-an sa
 LABOR RELATIONS
From the lectures of Father Agustin Nazareno
ATENEO DE DAVAO UNIVERSITY | COLLEGE OF LAW | 3-Manresa | S.Y. 2019-2020
As to Formation
Book V, R IV; & R III,
Articles 239/240
Sec. 2 C&D
As to Petition for Certification Election
Can file Cannot file
COMMON DENOMINATOR:
Composed of workers
LABOR ORGANIZATION: Classification as to how
formed
For purposes of classification of labor organization as to
legal personality, you have the (1) Independent Union
and the (2) Chartered Local.
1.) Independent Union
The independent union is registered under Article 239 of
the Labor Code.
ART. 239 (234). Requirements of Registration.
- A federation, national union or industry or trade
union center or an independent union shall acquire
legal personality and shall be entitled to the rights
and privileges granted by law to legitimate labor
organizations upon issuance of the certificate of
registration based on the following requirements:
(a) Fifty pesos (P50.00) registration fee;
(b) The names of its officers, their addresses, the
principal address of the labor organization, the
minutes of the organizational meetings and the list
of the workers who participated in such meetings;
(c) In case the applicant is an independent union,
the names of all its members comprising at least
twenty percent (20%) of all the employees in the
bargaining unit where it seeks to operate;
(d) If the applicant union has been in existence for
one or more years, copies of its annual financial
reports; and
(e) Four copies of the constitution and by-laws of
the applicant union, minutes of its adoption or
ratification, and the list of the members who
participated in it.
The problem there is that you really need a lawyer to
register an independent union. You have to have a
general meeting of the workers that will become
members of the labor organization and the meeting is for
the purpose of adopting the constitution and the by-laws
of the labor organization. You document that and you list
down all those who have voted for it in favor of this
constitution and by-laws. And then this has to be under
oath. Then you submit it to the Regional Office of the
Department of Labor more specifically the Med-Arbiter
who is attached to it (because the Med-Arbiter is Bureau
of Labor Relations attached to the Director of the
Department of Labor), together with the registration fee.
It used to be just P500, now I think its higher. If you have
no one to notarize your minutes of the meeting, then you
might ask the Dept. of Labor lawyers to do it. But then
they will insist in attending the meetings so you will have
to call the meeting again so that’s why hardly anyone
registers through 239.
2.) Chartered Local
What is the more simple way? That is by way of
Chartered Local under Article 240 of the Labor Code.
ART. 240 (234-A). Chartering and Creation of
a Local Chapter. - A duly registered federation or
national union may directly create a local chapter by
issuing a charter certificate indicating the
establishment of the local chapter. The chapter shall
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acquire legal personality only for purposes of filing
a petition for certification election from the date it
was issued a charter certificate.
The chapter shall be entitled to all other rights and
privileges of a legitimate labor organization only
upon the submission of the following documents in
addition to its charter certificate:
(a) The names of the chapter's officers, their
addresses, and the principal office of the chapter;
and
(b) The chapter's constitution and by-
laws: Provided, That where the chapter's
constitution and by-laws are the same as that of the
federation or the national union, this fact shall be
indicated accordingly.
The additional supporting requirements shall be
certified under oath by the secretary or treasurer of
the chapter and attested by its president.
A labor federation which constitutes at least 10 locals,
each of which must be the exclusive bargaining agent at
the workplace level. The federation can issue a chartered
local certificate to a group of workers at the workplace
level constituting them as a branch or local of that
federation. From the moment that that certificate is
issued, they have sufficient personality to file a petition
for certification election. That is the provisional
personality. They cannot do any other thing except file
for petition for certification election.
Now if they find the need to function as a full legal
personality, that is when they will hold a meeting with
the assistance of the federation, adopt the constitution
and by-laws, or just state that their constitution and by-
laws is identical with that of the federation, submit that
to the Regional Office of the Dept. of Labor, pay the
registration fee and subsequently receive a full
certification that they are now a full local chartered under
that federation.
So get those cases like ABARIA vs NLRC (2011), a
local union which is not independently registered cannot,
upon disaffiliation from the federation, exercise the rights
and privileges granted by law to a legitimate labor
organization.
If you are a chartered local, you do not have an
independent registration. So if you disaffiliate from the
federation, you are no longer a labor organization. That’s
why the federation holds you by your balls J
QUESTION: What is the relationship between the
chartered local and the federation?
ANSWER: The federation is the agent of the local.
Hinumdomi intawon na kay pag abot nyo sa Corporation,
holding corporation naay subsidiary, dghan subsidiary sa
holding. Unsa may relationship sa holding ug sa
subsidiary? Anak na sa holding. Tuo na sa holding. Ang
holding corporation ang magbuot ana. Sa labor bali!
(baliktad)
The Supreme Court said, the local is the principal, the
federation is the agent. The real-party-in-interest if
there is already an exclusive bargaining agent and the
employer and there is a CBA, the real-party-in-interest is
the local and not the federation. So even if the
constitution and by-laws of the federation says that the
local cannot disaffiliate or cut its relationship with the
federation at any time but only in the last 60 days of the
CBA, if that is provided in the constitution and by-laws,
the Supreme Court said that the local is not bound by it.
It can disaffiliate at any time. Ang magbuot ang local dili
 LABOR RELATIONS
From the lectures of Father Agustin Nazareno
ATENEO DE DAVAO UNIVERSITY | COLLEGE OF LAW | 3-Manresa | S.Y. 2019-2020
lang ghapon ang ngalan sa NAMAHMIN. Kung muinsist
ng NAMAHMIN, kung mao nay mahitabo, normally the
Dept. of Labor will hold a referendum. Tawgon nya tanan
workers within the bargaining unit ug mag election.
“Kinsa man inyo pillion? Kaning unang bana ninyo o
kaning kaduha? Ang NAMAHMIN o kaning bag-o nga SPFL
or Southern Philippine Federation of Labor? Piniliay na,
secret ballot. Dira mahibal-an kung tinuod ba gyud ng
disaffiliation o lihok ra na sa mga leaders.
(0:30:01)
July 3 Part 2 [ MANAAY ]
Continuation:
… according to personality of collective bargaining, it is in
favor or legislation legitimate labor organization, and
finally exclusive bargaining agent that is classification, as
to your power to enter into collective bargaining
agreement.
LABOR CENTER
There is also a case, where the one who granted the local
charter is a labor center. A labor center is an acromation
of federations, national unions, or independent unions.
Remember, a federation is an acromation of locals, or
affiliates, each of which is (inaudible) agent. An example
of a labor center: TUCP, which is normally associated
with ALU. ALU is a labor federation, Associated Labor
Unions. TUCP is Trade Union Congress of the Philippines.
Ilang gisunod nang AFL-CIO sa America. Association of
Federations of Labor Conference of International
Organizational. Ngano gipasara man sila? Kay naa man
sila isa ka federation sa Canada. Registered being, diba?
World champion (Father talks about the Toronto
Raptors).
What is another example of labor center? TUPAS. Trade
Unions of the Philippines and Allied Services. Mao na
TUPAS kay ang nangulo ana kay si Mr. Tupas man. 30
years siya nangulo ana, wa jud mibuhi. Gikan pa 1954,
the same year the Industrial Peace Act was made
effective. It was always led by Atty. Democrito Mendoza
(Father talks about how Mendoza never became
president).
Now, there is a provision in the Labor Code, which is
intended to put an end to the dynastic nature of labor
organizations. That is why, Art. 249 (c), Rights and
Conditions, (It is renumbered as Article 250 in the Labor
Code Codal) this is intended to put an end to dynastic
nature of labor organizations:
Article 250. [241] Rights and Conditions of
Membership in a Labor Organization. - The
following are the rights and conditions of
membership in a labor organization:
Xxx
(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 secret
ballot at intervals of five (5) years. No qualification
requirements for candidacy to any position shall be
imposed other than membership in good standing in
subject labor organization. The secretary or any
other responsible union officer shall furnish the
Secretary of Labor and Employment with a list of
the newly-elected officers, together with the
appointive officers or agents who are entrusted with
the handling of funds, within thirty (30) calendar
days after the election of officers or from the
occurrence of any change in the list of officers of the
labor organization;
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xxx
What people usually do, they hold this national
convention in Manila, and they pick out the president of
each of the locals, who will elect the president. Now the
law says everybody must direct the following. Because
that is intended to end dynastic legacy. It did not
succeed. True unionists will tell you, this a management
issue. Ang makadaog na presidente diri, kung secret
ballot na, kanang makakampanya sa local union. Kung
ako naa sa Philippines, ako pa ang mugasto! Mao na
mailhan, kay naa man ka ikagasto sa kampanya. Ang
daog diri, ang employer ra, ang kandidato sa employer.
Pareho anang PALEA. Kinsa man makasuroysuroy ana?
Kanang tagaan ug free pass sa Philippine Airlines.
Kandidato siya sa employer. Kadtong kandidato sa mga
tao, di sila kadaog kay wala man sila kwarta pangsuroy.
Mao nang argument that wins the day. Kanang mga
nagstudy sa union, ingon sila "A union is never right in a
democratic organization". Di mahimo democratic. Mag
stike ta? Kanus-a man ta mag strike? Kana, who's in
favor? Sunod simana? Mahibaw-an na sa management.
Unsa may pagkahibaw? Ang presidente ra, ang general,
musulti siya strike ta ugma, salig lang sa akoa. Karon
adlawa, ibutang nimo imo kinabuhi sa iyang kamot.
Pagsulti niya kaskas ta, kaskas na. Ang management,
lahi man sila. Tua sila sa taas, luyo, lahi pud ila problema.
Rank and file. Ang driver sa presidente sa kumpanya
nagfile siya. Di nato siya paapilon dire, abi pa lang
musturya na sa taas. Di nato na paapilon. Mahitabo ba
na? Ingon siya asa man ko ani? Sa managerial,
supervisory. Driver ka sa presidente, di ka maapil sa
union. Wa man na sa balaod, asa man na. Till now, wala
pa nang driver sa presidente.
Nau rank and file dira. Igsoon sa asawa sa branch
manager. Can you prohibit him? Ngano naa man siya
dira? Plant manager, igsoon sa asawa branch manager?
Tuo ka ana sa iya, igsoon sa asawa sa branch manager.
Pasudla na lang ning akoa, para di malayo. You cannot
easily bar him. Kumpetensya. Unsang klaseng
kumpetensya. The employee is privy to labor relations
related matters. Kana. Nai sweldo, nai income, kana. Dili
kay relationship by affinity or consanguinity. Lahi man
na, succession ra na,dili na diri.
Now, can a labor center, since it has federations,
issue chapter certificate to a local? That has been
decided by the SC. Only a federation or a national union
can issue a charter certificate. A labor center cannot
issue. What does the Constitution say? Is the right to
exercise of self-organization preferred? It is preferred, is
it not? It is a protected right. If it is a protected right,
why did the Supreme Court not give the benefit of a
doubt since labor centers have accreditors. It is just
semantics, when you say it is a labor. "TUCP issued a
labor certificate". Plastar na lang nang TUCP. Kung ang
usa nag issue ang bughot sa kadaghanan, siyaro di na
maka-issue. Isn't it that the law should be interpreted in
favor of labor? Why did the SC shoot it down. Pay
attention to this. When the SC says, and many times it
has said: Labor statutes, when there is doubt, are
interpreted in favor of labor. That labor is not necessarily
capital L, not necessarily the union, not necessarily the
federation. Because there are also pronouncements when
it says that the solitary worker needs to be protected as
is vowed by the Constitution, not only against the
government, not only against the employer, but also
against his own organization which sometimes can be
(inaudible). Where is that found? That is found in:
VICTORIANO VS. ELIZALDE ROPE WORKERS
G.R. No. L-25246 September 12, 1974
Held: There are at least 3 from which threats to the
individual worker may lie: 1) the government; 2) the
employer; 3) the union itself. And then the SC said,
through the pen of Justice Enrique Fernando: "the
 LABOR RELATIONS
From the lectures of Father Agustin Nazareno
ATENEO DE DAVAO UNIVERSITY | COLLEGE OF LAW | 3-Manresa | S.Y. 2019-2020
the members. The members themselves individually
must assent in writing to the compromise agreement.
PART OF THE BARGAINING UNIT BUT NOT UNION
MEMBER
Let us say the union now comes out with a victory and
says we will apply this to all the members of the
bargaining unit, but they are not members of the union.
Now, there’s a problem because the union cannot bring
a case for and in behalf of those in the bargaining unit
who are not members of the union. Only the members of
the union. They may be covered by the CBA because they
have the same bargaining unit but they are not
automatically represented by the union when it comes to
money claims.
INTRA-UNION DISPUTE
You have a union member. And the Union member, has
a complaint against the employer. What is the complaint
of the union member? The complaint of the union
member is that his union is not representing his interests
and is in cahoots with management. Asa sya paingon
ana? Now, you have what is called an intra-union dispute
or controversy. The one that has jurisdiction now is the
bureau of labor relations. Now, you can go to the
bureau of labor relations, provided you have exhausted
the internal remedies of the union, because in the
constitutional by-laws of the union there is always a
remedial measure for complaints against the union and
its officers. Now, if you have gone through that and you
have exhausted it and still dissatisfied, that is the time
that you can go to the bureau of labor relations and file
for an Intra-union dispute.
EXCEPTION: The exception to the rule that you must
exhaust the internal remedies of the union is if the
channel to which you should air your complaint first, is
the same person responsible for that which you are
complaining about.
That is where you can go straight to the bureau of labor
relations. That sounds familiar, right? That is the doctrine
of exhaustion of administrative remedies.
There is this provision, Article 241:
Art. 241. Rights and conditions of membership
in a labor organization. The following are the
rights and conditions of membership in a labor
organization:
a. No arbitrary or excessive initiation fees shall
be required of the members of a legitimate
labor organization nor shall arbitrary,
excessive or oppressive fine and forfeiture
be imposed;
b. The members shall be entitled to full and
detailed reports from their officers and
representatives of all financial transactions
as provided for in the constitution and by-
laws of the organization;
c. The members shall directly elect their
officers, including those of the national union
or federation, to which they or their union is
affiliated, by secret ballot at intervals of five
(5) years. No qualification requirements for
candidacy to any position shall be imposed
other than membership in good standing in
subject labor organization. The secretary or
any other responsible union officer shall
furnish the Secretary of Labor and
Employment with a list of the newly-elected
officers, together with the appointive officers
or agents who are entrusted with the
handling of funds, within thirty (30) calendar
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days after the election of officers or from the
occurrence of any change in the list of
officers of the labor organization; (As
amended by Section 16, Republic Act No.
6715, March 21, 1989)
d. The members shall determine by secret
ballot, after due deliberation, any question of
major policy affecting the entire membership
of the organization, unless the nature of the
organization or force majeure renders such
secret ballot impractical, in which case, the
board of directors of the organization may
make the decision in behalf of the general
membership;
e. No labor organization shall knowingly admit
as members or continue in membership any
individual who belongs to a subversive
organization or who is engaged directly or
indirectly in any subversive activity;
f. No person who has been convicted of a crime
involving moral turpitude shall be eligible for
election as a union officer or for appointment
to any position in the union;
g. No officer, agent or member of a labor
organization shall collect any fees, dues, or
other contributions in its behalf or make any
disbursement of its money or funds unless
he is duly authorized pursuant to its
constitution and by-laws;
h. Every payment of fees, dues or other
contributions by a member shall be
evidenced by a receipt signed by the officer
or agent making the collection and entered
into the record of the organization to be kept
and maintained for the purpose;
i. The funds of the organization shall not be
applied for any purpose or object other than
those expressly provided by its constitution
and by-laws or those expressly authorized
by written resolution adopted by the
majority of the members at a general
meeting duly called for the purpose;
j. Every income or revenue of the organization
shall be evidenced by a record showing its
source, and every expenditure of its funds
shall be 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 record or receipt shall
form part of the financial records of the
organization.
Any action involving the funds of the organization
shall prescribe after three (3) years from the date of
submission of the annual financial report to the
Department of Labor and Employment or from the
date the same should have been submitted as
required by law, whichever comes earlier: Provided,
That this provision shall apply only to a legitimate
labor organization which has submitted the financial
report requirements under this Code: Provided,
further, that failure of any labor organization to
comply with the periodic financial reports required by
law and such rules and regulations promulgated
thereunder six (6) months after the effectivity of this
Act shall automatically result in the cancellation of
union registration of such labor organization; (As
amended by Section 16, Republic Act No. 6715,
March 21, 1989)
k. The officers of any labor organization shall
not be paid any compensation other than the
salaries and expenses due to their positions
as specifically provided for in its constitution
and by-laws, or in a written resolution duly
authorized by a majority of all the members
at a general membership meeting duly called
 LABOR RELATIONS
From the lectures of Father Agustin Nazareno
ATENEO DE DAVAO UNIVERSITY | COLLEGE OF LAW | 3-Manresa | S.Y. 2019-2020
You can demand reports. Ang kadaot lang man kay we
confuse Filipino culture with the requirements of the law.
The members are supposed to demand these reports
because you are entitled to it. Ang tubag sa mga official
ana, "unsa man mo, wala diay mo'y salig nako?" Mao na,
edi mag-away na dayun, pagsugod pa lang. Pero mali
mana, there must be a sense of democratic
underpinnings of the union, because a union as much as
it is an organization for bargaining, it is an expression of
industrial democracy.
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 secret
ballot at intervals of five (5) years. No qualification
requirements for candidacy to any position shall be
imposed other than membership in good standing in
subject labor organization. The secretary or any
other responsible union officer shall furnish the
Secretary of Labor and Employment with a list of
the newly-elected officers, together with the
appointive officers or agents who are entrusted with
the handling of funds, within thirty (30) calendar
days after the election of officers or from the
occurrence of any change in the list of officers of the
labor organization; (As amended by Section 16,
Republic Act No. 6715, March 21, 1989)
d. The members shall determine by secret ballot,
after due deliberation, any question of major policy
affecting the entire membership of the organization,
unless the nature of the organization or force
majeure renders such secret ballot impractical, in
which case, the board of directors of the
organization may make the decision in behalf of the
general membership;
Inclusion to union’s constitution and by-laws as an
exception to secret ballot provision
So let's take the question of, the amount of union dues.
If it is open to discussion, the final deliberation there is
secret ballot by all the members, because that is required
by Article 249 (d).
Q. How do you remove if from 249(d)?
A. If you are the union, you want to remove it from the
members, you put it in the constitution and by-laws. You
will say:
The union dues monthly shall be deducted at source, by
virtue of union security clause in the CBA. And it shall not
be less than 2% or 1% of monthly remuneration of the
union member.
The 2% monthly, sa atoa, kung muincrease ang sweldo
kay muincrease sad ang monthly due kay percentage
man, so you do not need to vote for it anymore since it
is present in the constitution and by-laws, so you have
removed it from the secret ballot which was the
requirement.
e. No labor organization shall knowingly admit
as members or continue in membership any
individual who belongs to a subversive organization
or who is engaged directly or indirectly in any
subversive activity;
This has been repealed because of the Anti-Subversion
Law has been repealed/rendered unconstitutional.
f. No person who has been convicted of a crime
involving moral turpitude shall be eligible for
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election as a union officer or for appointment to any
position in the union;
But you can be elected as a president (of the Philippines)
even if you have been involved in a crime involving moral
turpitude, there is no prohibition in the Constitution. Mas
lisod pa mahimung official sa union kesa sa mapili ka
nga presidente sa Pilipinas.
g. No officer, agent or member of a labor
organization shall collect any fees, dues, or other
contributions in its behalf or make any
disbursement of its money or funds unless he is duly
authorized pursuant to its constitution and by-laws;
Q. How can this happen? That somebody who is not
authorized collects union dues? How can it happen?
A. Ani mani, magsugod ng union, naa na'y informal
leader kung kinsa mao na siya'y magcollect. Unya na
porma na ang union, pero wala pa'y CBA so wala pa'y
deduction for union dues mao mag sige gihapon siya ug
pangolekta tapos ikaw kay naanad naka, muhatag pud
ka. Mao ng problema, kay mao man pud ng sa Home
Seekers Association, kanang mga wala'y yuta ba, kanang
mga squatters. Wala pa'y association, naa pa na'y
mangolekta tpaos pagka naa na'y association tapos naa
na'y treasurer, mangolekta gihapon, mao na.
In the first place, from whom the collection was made,
should demand a receipt. Dapat mangayo ka ug official
receipt. Tapos muingon na pud tung nangolekta, "unsa
na, dili ka musalig nako?" "Musalig lage ko nimu pero
receipt" Kanang pagsalig, dili mana ihatag, kanang
pagsalig, gihaguan na nimu maong musalig kanimu.
Trust is not given in transaction, it is earned. In
transaction, you earn trust, you do not give trust. Naa
gani'y resibo, now I trust you. If walay resibo,
nagtaguban ka (nagdisguise), dili di ay ka masaligan.
h. Every payment of fees, dues or other
contributions by a member shall be evidenced by a
receipt signed by the officer or agent making the
collection and entered into the record of the
organization to be kept and maintained for the
purpose;
Obligation to issue a receipt
Kadaot ana no, pinakalisod nga itudlo sa union kay ang
pagliquidate. E.g, asa man ang liquidation ani? Wala pako
ka liquidate. Dili man sila kabalo magliquidate, kanang
"mao ning nadawat, mao ning nagasto" Ang pag itemize
nimu sa mga nagasto, pag-abot sa miscellaneous 1000,
tapos ginagmay lang kaayo tung accounted for pero sa
miscellaneous sobra pa sa katunga sa nadawat nga
kwarta. Mao ning mahimong problema nimu, abogado ka
tapos mag-organize ka ug mga cooperative o union, i-
seminar intawon na unsaon pangolekta, pag-issue ug
resibo. Do not take for granted what is common and
obvious to you because true education is rare.
i. The funds of the organization shall not be
applied for any purpose or object other than those
expressly provided by its constitution and by-laws
or those expressly authorized by written resolution
adopted by the majority of the members at a
general meeting duly called for the purpose;
j. Every income or revenue of the organization
shall be evidenced by a record showing its source,
and every expenditure of its funds shall be
evidenced by a receipt from the person to whom the
payment is made, which shall state the date, place
 LABOR RELATIONS
From the lectures of Father Agustin Nazareno
ATENEO DE DAVAO UNIVERSITY | COLLEGE OF LAW | 3-Manresa | S.Y. 2019-2020
What happens to the agreed upon 10% of the improved
increase which the BOD agreed with the lawyers? Is that
a valid agreement? Can the BOD agree representing the
union with lawyers with respect to their fees or is it
decided by the general assembly?
• The BOD, since they are the governing body of the
union, can agree with the lawyers but the amount
agreed upon, unless passed through section (n) and
(o) of Article 249, has to be charged to the general
fund and it cannot be by special assessment. If the
BOD pledged a certain amount, that binds the union
but it is chargeable to the general fund. You cannot
deduct by special assessment negotiation fees on the
basis of a resolution approved by the absolute
majority of the membership alone; you are required to
obtain individual authorization form the members.
(l) The treasurer of any labor organization and every
officer thereof who is responsible for the account of
such organization or for the collection,
management, disbursement, custody or control of
the funds, moneys and other properties of the
organization, shall render to the organization and
to its members a true and correct account of all
moneys received and paid by him since he
assumed office or since the last day on which he
rendered such account, and of all bonds, securities
and other properties of the organization entrusted
to his custody or under his control. The rendering
of such account shall be made:
1. At least once a year within thirty (30) days after the
close of its fiscal year:
2. At such other times as may be required by a
resolution of the majority of the members of the
organization; and
3. Upon vacating his office.
The account shall be duly audited and verified by
affidavit and a copy thereof shall be furnished the
Secretary of Labor.
What is a fiscal year?
A fiscal year is a succession of 12 months; it can coincide
with the calendar year or struggle between 2 calendar
year but it must be consecutive 12 months; it is the
accounting period of which the 2 basic financial
statements is founded upon: the balance sheet and profit
and loss statement.
How do you know when the fiscal year of the union is? It
is found in the constitution and by-laws of the union just
like a corporation. Where do you find the fiscal year of
the corporation? Normally in the by-laws; sometimes
they include it in the articles of the corporation. That is
an amendment and if made, must be approved prior to
making an amendment. Who approves?
• At the end of the fiscal year, within 30 days, it is the
duty of the treasurer to make a financial report.
• “At such the times as may be required by a resolution
of the of the majority of the members of the
organization”. — Take note that majority of the
members of the organization means not absolute
majority; it is just the majority of the quorum because
it does not says “majority of all the members” of the
organization.
When a treasurer vacates his office, in other words,
there should be closure as to financial and accounting
liabilities and he must render a financial report. The
term of office of union officers is 5 years because that
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is most to coincide with the term of a CBA. Every year
year in that 5 years, he is obliged to to render a financial
report. That is important for the general membership.
Q: If the general membership does not care about the
report, what can one solitary member who wants to find
out the financial status of the union do? Can he demand
a financial report?
A: There are 2 things he can do.
1.He can write a letter to the treasurer demanding
from him the report. If he does not make that
report after the demand, he can file a complaint
with the Bureau of Labor Relations and the
complaint can be either of 2 kinds. He can ask for
the BLA to exercise its visitorial powers — the
examiner can go to the office of the union obtain
copies of the financial records and investigate.
However, you cannot do that within the 60-day
freedom period of the CBA (the last 60 days)
because that might be used to harass the
incumbent union when it comes to elections. You
must do that before the 60 days freedom period.
2.Exercise your right of inspection. Inform the
secretary, president and treasure that you would
like to inspect the books because you have the
right the right to inspect the books. And then
when the President answers, “Grade 4 ra baya ka
kutob unya magpainspect ka. Si kina man ka kay
magpainspect ka?” What will you do? You can
bring an accountant. You have a right to bring a
competent adviser who can render an intelligible
things which you cannot understand. That’s
already standard decision of the Supreme Court in
corporations and other entities. The SC says if you
cannot bring an accountant when you exercise
your right of inspection, as far as you are
concerned, your right is rendered nugatory. You
can have copies made of the records at your
expense.
If you are denied then you go the BLA and file an
intra-union complaint. You against the treasurer,
secretary and the president. You ask the BLA rule
upon your petite exercise high top inspection
(p) It shall be the duty of any labor organization and
its officers to inform its members on the provisions
of its constitution and by-laws, collective
bargaining agreement, the prevailing labor
relations system and all their rights and obligations
under existing labor laws.
For this purpose, registered labor organizations may
assess reasonable dues to finance labor relations
seminars and other labor education activities.
These are called mandatory activities (the holding of
seminars to inform members of labor laws and the
meaning and specification of the CBA). For this purpose,
since it is a mandatory activity, a simple resolution by the
Board is enough that a special assessment be deducted
at source. You take a look at section (o) which says
“other than for mandatory activities under the Code, no
special assessments, … may be checked off from any
amount due to an employee without an individual written
authorization”. If it is mandatory activities, then there is
no need for individual authorization because it is
mandated by the Labor Code. Naa seminar and naa lang
na sa imoha kung mutambong ka or dili.
Any violation of the above rights and conditions of
membership shall be a ground for cancellation of union
registration or expulsion of officers from office, whichever
 LABOR RELATIONS
From the lectures of Father Agustin Nazareno
ATENEO DE DAVAO UNIVERSITY | COLLEGE OF LAW | 3-Manresa | S.Y. 2019-2020
Pareha sainyung natun-an sa Omnibus Election
Code. What kind of irregularity in election
constitutes a ground for failure of election? Serious,
substantial, and widespread as to defeat the will of
the general popular voting public. Pagkalisud ana
pagprove. Kung gipamalit tanang boto, unsaon man
nimo pagprove ana? Wala pakoy nadungog nga
election na na-nullify because of widespread
cheating. If that is a joke, all the more this
provision is. Know that this exists theoretically as a
ground.
*Editor’s note: I cannot find the 2005 case in eSCRA, SC
elibrary, ChanRobles, or LawPhil or in the TSNs. There is
a 2006 case though.
AIR PHILIPPINES CORPORATION v. BUREAU
OF LABOR RELATIONS
GR 155395, 492 SCRA 241, June 22, 2006
Facts: Respondent Air Philippines Flight Attendants
Association (APFLAA) was issued a Certificate of
Registration by the DOLE. APFLAA filed a petition
for certification election as the collective bargaining
representative of the flight attendants of Air
Philippines Corporation (APC).
After the Med-Arbiter rendered a ruling ordering the
holding of a certification election, such election was
held, with majority of votes cast in favor of AFPLAA
APC filed a petition for De-Certification and
Cancellation of Union Registration against APFLAA
with DOLE on the ff. Grounds:
1.) APFLAA could not be registered as a labor
organization, as its composition consisted of “a
mixture of supervisory and rank-and-file flight
attendants”;
2.) Flight attendants holding the position of “Lead
Cabin Attendant,” which according to it is
supervisory in character, were among those who
comprised APFLAA.
DOLE: dismissed petition, holding that Article 245
of the Labor Code does not provide a ground for
cancellation of union registration, which is instead
governed by Article 239 of the Labor Code.
Issue: Whether or not APFLAA’s certification shall
be cancelled.
Held: NO. For the purpose of de-certifying a union,
it is not enough to establish that the rank-and-file
union includes ineligible employees in its
membership. Pursuant to Article 239 (a) and (c) of
the Labor Code, it must be shown that there was
misrepresentation, false statement or fraud in
connection with the adoption or ratification of the
constitution and by-laws or amendments thereto,
the minutes of ratification, or in connection with the
election of officers, minutes of the election of
officers, the list of voters, or failure to submit these
documents together with the list of the newly
elected-appointed officers and their postal
addresses to the BLR.
In its Petition for De-certification and Cancellation
of Union Registration, APC did not impute on
APFLAA such misrepresentation of the character
necessitated under Article 239 (a) and (c) of the
Labor Code. APC merely argued that APFLAA was
not qualified to become a legitimate labor
organization by reason of its mixed composition of
rank-and-file and supervisory employees; and that
APFLAA committed misrepresentation by making it
appear that its composition was composed purely of
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rank-and-file employees. Such misrepresentation (if
it can be called as such) as alleged by APC, is not
conformable to Article 239 (a) and (c) of the Labor
Code. Indeed, it appears from the record that APC
instead devoted the bulk of its arguments in
establishing that supervisory employees comprised
part of the membership of APFLAA, a ground which
is not sufficient to cause the cancellation of union
registration. And this is of course all under the
assumption that Lead Cabin Attendants are indeed
supervisory employees, a claim consistently denied
by APFLAA and which was not confirmed by either
the DOLE-NCR or the BLR.
RIGHTS OF LABOR ORGANIZATIONS
Article 242. Rights of legitimate labor
organizations. - A legitimate labor organization
shall have the right:
(a) To act as the representative of its members for
the purpose of collective bargaining;
(b) To be certified as the exclusive representative
of all the employees in an appropriate collective
bargaining unit for purposes of collective
bargaining;
(c) To be furnished by the employer, upon written
request, with his annual audited financial
statements, including the balance sheet and the
profit and loss statement, within thirty (30)
calendar days from the date of receipt of the
request, after the union has been duly recognized
by the employer or certified as the sole and
exclusive bargaining representative of the
employees in the bargaining unit, or within sixty
(60) calendar days before, or during the collective
bargaining negotiation.
(d) To own property, real or personal, for the use
and benefit of the labor organization and its
members;
(e) To sue and be sued in its registered name; and
(f) To undertake all other activities designed to
benefit the organization and its members,
including cooperative, housing welfare and other
projects not contrary to law.
Notwithstanding any provision of a general or
special law to the contrary, the income, and the
properties of legitimate labor organizations,
including grants, endowments, gifts, donations and
contributions they may receive from fraternal and
similar organizations, local or foreign, which are
actually, directly and exclusively used for their
lawful purposes, shall be free from taxes, duties
and other assessments. The exemptions provided
herein may be withdrawn only by a special law
expressly repealing this provision.
Let me just jump straight ahead to letter d:
(d) To own property, real or personal, for the use
and benefit of the labor organization and its
members;
Letter e:
(e) To sue and be sued in its registered name;
Letter d and e are superfluous. Even if they are amended
out of existence, it does not matter because these are all
 LABOR RELATIONS
From the lectures of Father Agustin Nazareno
ATENEO DE DAVAO UNIVERSITY | COLLEGE OF LAW | 3-Manresa | S.Y. 2019-2020

better set of terms and conditions of work.” No, you

cannot. Too bad, you cannot. You belong to a
bargaining unit that has chosen by majority vote the
union. Wa kay mahimo.

In the States, there is such a thing as a right to work law.

If you did not vote, you can step out and say, “To hell
with you, union! I will enter into a separate contract.”
Mostly that is in the south. That is why there are no
unions in the south in the private sector. That is why all
the big manufacturers are there [in] Louisiana, South
Carolina, etc.

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