Previously on the Haunting of Labor Relations M9
Part 2
We mentioned the fundamental principles that underlie
the right to self-organization. We also mention the 2
broad notions that underscore the right to self-
organization.
Today, we have to identify what are the common reasons
why workers decide to organize themselves into a labor
organization.
The Supreme Court has observed in one case that labor
organizations are organized out of necessities of the
situation. They are formed to off-set the social and
economic imbalance that an individual undergoes when
bargaining with his employer.
True indeed, we need to concede that when we speak of
a single employee, he/she is usually helpless in dealing
with his employer concerning his terms and conditions of
employment like wages, hours of work and other benefits.
If I am an employee and there is no labor organization
within the establishment that I employed in and I may
want to improve on my wages and my salary, it’s kind of
difficult on my part to approach management and request
them to grant me a salary raise. I may be shy, I may feel
so low, I may not feel so confident that if I decide to
approach management.
In the same way that the employee who may have valid
grievance may also be in the same situation if he decides
to seek redress of his grievance. He may want to set an
appointment with his employer. Most often than not,
employers are really busy and they don;t really take their
employees seriously when it comes to addressing
grievances.
So the workers’ helplessness creates the necessity for the
workers to organize a labor organization.
TN: A worker bargaining with his employer is usually
placed at a disadvantage because between him and his
employer there is a large difference in economic status,
bargaining knowledge, and skill and so on and so forth.
The employee may not be as good in dealing with his Makita mo yung mga federation of national unions diba,
employer regarding the improvement of his terms and even in politics, you will recognize itong mga politicians
__________________________________________________________________________________________________
Module 9 - 11 Transcript l Labor Relations l Atty. JMM l Taucan, Evengelista, Alonzo (TEA)
conditions of his employment compared to when dealing
as a group.
Another situation is those inhumane working
conditions. If the workers feel that they are not
accorded just and humane conditions of work, the
employer violates the right of the workers to occupational
safety and health, that is also another common grievance
why workers decide to organize.
If you look at the law that strengthens the right of workers
to occupational safety and health, there are a lot of rights
that are spelled out there and you will note that many of
these rights are often violated. Perhaps deliberately or out
of ignorance. That will leave the workers helpless.
Another reason why workers organize is because they
may want to participate in policy and decision making
processes.
Yung mga labor union naman they decide to affiliate with
a federation of national union in order to increase their
bargaining power with their employer. Tapos yung mga
federation of national union naman, they created and
organized because as you know many governmental
policies are influenced by unions acting as pressure
groups. So workers increase their bargaining power, not
only with the employers but also with the policy makers if
they are organized as national unions or federations.
There could be valid reasons, you can think also of these
valid reasons why workers form and organize a union.
Now, in this regard, we have to take note that as the State
is quite cognizant of these concerns and problems
affecting workers, the policy of the State is to promote
unionism. That is to enable the workers to negotiate with
the management on the same level and with more
persuasiveness than if they were to individually and
independently with their employer to improve their
respective conditions.
So, labor and capital do not really stand on equal footing.
The Labor is still dependent on capital. Off-setting this
socio-economic imbalance is one of the primary objectives
of the exercise of the workers’ right to self-organization.
natin are heavily dependent on their votes form these
organized labor unions.
We can take notice that there are politicians who are
elected to office because the represent the leadership in
these organized federations and national unions.
At this point I’d like to stress that the Constitution
guarantees the policy of the State to promote
unionism by giving the workers the right to self-
organization. Sabi ng Constitution “workers, we are
quite cognizant of your concerns and grievances and we
are promoting the policy of unionism. We want you to
deal with management more or less at the same level
therefore we guarantee you the right to self-organization.
So long as you are qualified to be a member labor union,
then you may exercise that right to self-organization”
The State further guarantees the policy of unionism by
providing organized labor unions who are certified as the
Sole Exclusive Bargaining Agent to exercise the right to
collective bargaining.
Furthermore, the Constitution likewise guarantees the
right of workers to engage in peaceful concerted activities
including the right to strike in cases of unfair labor
practices as well as bargaining deadlocks.
So there are so many essential features of the Philippine
Constitution that will spell out guarantees on the policy of
the State to promote Unionism. You just have to identify
them. As we go along, we will be discussing each and
every constitutional right that is relevant; not to mention
the rights of legitimate labor organization under the Labor
Code of the Philippines.
Now that we know these fundamental principles, we know
the definition of terms, we know the objective of the State
in promoting unionism, and we know what are the
guarantees of the Constitution to promote the same.
Q: In what establishments can employees exercise
the right to self-organization?
If you look at the Article 253 of the Labor Code, it will
spell out to you a long enumeration of the coverage and
employees’ right to self organization. All persons who are
employed in commercial, industrial, agricultural,
religious, charitable, medical and educational
institutions may exercise the right to self-organization.
__________________________________________________________________________________________________
Module 9 - 11 Transcript l Labor Relations l Atty. JMM l Taucan, Evengelista, Alonzo (TEA)
COMMERCIAL ESTABLISHMENTS - establishments
engaged in the sale of goods and/or services. Those
persons employed thereat may exercise the right to self-
organization.
INDUSTRIAL ESTABLISHMENTS - those engaged in
processing of raw materials into finished goods. The
workers there may also organize or join a labor
organization. Manufacturing establishments in particular.
Mag manufacture ka ng tobacco into cigarettes; a good
example of industrial establishment. Soda into soft drinks.
AGRICULTURAL - those involved in farming operations.
Basically, the agricultural employees are covered by the
right to self-organization.
RELIGIOUS ESTABLISHMENTS - regardless of your
faith, you are also eligible to exercise the right to self-
organization.
CHARITABLE INSTITUTIONS - Whether you operate
for profit or not, it does not matter, you can exercise the
right to self-organization. As long as you are sizable
enough to function as a labor union, then you may
exercise the right to self-organization.
MEDICAL ESTABLISHMENTS - like hospitals. The
nurses, doctors as long as they are eligible then they can
also exercise the right to self-organization.
EDUCATIONAL INSTITUTIONS - like USC, USJR, UC,
etc. Those private education institutions are also within
the coverage of the right to self-organization.
There is nothing in the law that defines how many
workers are needed before they can exercise the right to
self-organization.
What the law defines is their eligibility or
ineligibility to exercise the right to self-
organization. It does say that an establishment that has
less than 5 workers cannot exercise the right. It’s
available to everyone. After all, the constitution provides
that all the people, including those employed in the
private sector may form or organize a union, association
or societies for purposes not contrary to law. This right
shall not be abridged.
Just give your own illustration what is considered
commercial, industrial, educational, madical, charitable
institution.
Aside from that, do not forget that the IRR also provide
a similar provision for the coverage of the right to self-
organization.
I would like to reiterate that by definition of labor
organization it spells out the 2 FOLD PURPOSE
1. For purposes of collective bargaining
2. For mutual aid and protection
For labor union, we can safely say that they exist for the
purpose of collective bargaining and for other legitimate
purposes.
For workers’ association, they exist for the mutual aid
and protection of their members other than collective
bargaining.
That is what we derive from the definition of labor
organization. Now that we know the establishments that
we are employed in are within the coverage of the right
to self-organization, then we have to know who among
the employees are eligible and ineligible to exercise the
right to self-organization.
(16-31 mins – Evangelista)
…to exercise the right to self-organization.
For this purpose, take note that Article 245 of LC provides
for the ineligibility of managerial employees to join a labor
organization and also classifies other employees for
purposes of labor organization.
In other words, LC provides for a three-tiered
classification of employees:
1. Managerial employees
2. Supervisory employees
3. Rank-and-file
As I have said, the next question as who among the
employees are eligible or ineligible to exercise the right to
self-organization. Thus, you will have to know what the
classification of employees is.
Definition of terms (LC)
· Managerial employee is one who is vested
with the power or prerogative to lay down and
__________________________________________________________________________________________________
Module 9 - 11 Transcript l Labor Relations l Atty. JMM l Taucan, Evengelista, Alonzo (TEA)
execute management policies and/or to hire,
transfer, suspend, lay-off, assign, discharge or
discipline employees.
· Supervisory employees are those, in the
interest of the employer, effectively recommend
such managerial actions like power to hire,
transfer, suspend, lay-off, assign, discharge or
discipline employees, if the exercise of such
authority is not merely routinary or clerical in
nature but requires the use of independent
judgment.
TN: They are acting in the interest of the employer. Also,
they can effectively recommend. It is not just a mere
recommendation, but effective recommendation of such
action if the exercise of these authority is not merely
routinary or clerical but requires the use of independent
judgment.
· Rank-and-file employees are all employees
not listed within any of the above definitions.
If you are neither a managerial or supervisory employee,
then you are a rank-and-file.
Between the supervisory employee and a rank-and-file,
the former exercises independent judgment while the
latter merely performs routinary or clerical job and does
not require the use of independent judgment.
In labor standards, there is only 2 classification of
employees:
1. Managerial, including officers or members of the
managerial staff
2. Rank-and-file
In labor relations, it is a three-tiered classification.
Eligible or Not Eligible to Exercise the Right to Self-
Organization (Article 255)
Let’s first tackle the provisions before we proceed to case
laws.

Art 255. Managerial employees are not eligible
to join, assist or form any labor organization.
Supervisory employees shall not be eligible for
membership in the collective bargaining unit of
the rank-and-file employees but may join,
assist, or form separate collective bargaining
units and/or legitimate labor organization of
their own. The rank-and-file union and
supervisors’ union operating within the same
establishment may join the same federation or
national union.
Managerial employees
Absolute disqualification to join, assist or form any labor
organization because SC said that the reason behind such
disqualification is due to conflict of interest. If you are
managerial employee, you are acting in the interest of the
employer, if not the employer yourself.
When you are a managerial employee, you are charged
with the formulation and execution of management
policies. You have the power to exercise management
prerogative ie. hire, suspend, transfer
A managerial employee cannot join, assist, or form any
labor union because a labor union exists for the purpose
of collective bargaining and a managerial employee
cannot bargain with himself.
Since the law speaks of a labor organization, it also
disqualifies managerial employees from forming, joining
or assisting the formation of a workers’ association. Also,
they are disqualified from dealing with management
regarding terms and conditions of employment ie. wages,
hours of work, etc. They cannot deal because they are
the one who are supposed to adopt, implement and
execute these terms of employment.
The disqualification is very broad. A managerial employee
is disqualified and prohibited from forming, joining or
assisting a labor union and workers’ association.
TN: Labor organization includes not only labor union but
also workers’ association.
Supervisory employees
Supervisory employees shall not be eligible for
membership in the collective bargaining union of the
__________________________________________________________________________________________________
Module 9 - 11 Transcript l Labor Relations l Atty. JMM l Taucan, Evengelista, Alonzo (TEA)
rank-and-file employees but may join, assist, or form
separate collective bargaining units and/or legitimate
labor organization of their own.
A supervisory employee may form or organization his own
collective bargaining unit or legitimate labor organization
of their own. So, it is only exclusive to members of
supervisory employees.
However, a supervisory employee is prohibited from
joining the collective bargaining unit of the rank-and-file
employees due to conflict of interest, which involves 2
major areas:
1. Collective bargaining
2. Discipline
Because the rank-and-file employee usually reports to the
immediate supervisor. A supervisor is supposed to act in
the interest of the employer, necessarily it will betray the
loyalty he owes to his employer if he is allowed to join a
collective bargaining unit of the rank-and-file employees.
In the same, if a supervisory employee is allowed to join
a rank-and-file union, it would be unfair and
disadvantageous to the union if the supervisor will remain
loyal to management because the supervisor will be
acting as a spy for or against the rank-and-file labor
union. That may hamper the exercise of the right to self-
organization on the part of the rank-and-file union. To
avoid such situation, the law declares supervisory
employees ineligible to form, join or assist a collective
bargaining unit of the rank-and-file employees. However,
they can form their own.
TN: This is a relative disqualification because they are not
absolutely prohibited.
Rank-and-file employees
There is no disqualification at all. Among all the
classification, only the rank-and-file are absolutely
allowed to exercise the right to self-organization.
In an establishment, there can be a union of supervisory
employees and a union for rank-and-file employees. That
is how the law strengths the right to self-organization by
allowing in certain establishment to have at least 2 labor
organization: for rank-and-file and for supervisory
employees.
That is considered strong because what is left is only the
managerial employees. Thus, if the supervisory and rank-
and-file employees decide to go on strike, the
establishment will be paralyzed because it cannot run its
operation. There will be a necessary disruption in the
conduct of its operations if these separate bargaining
units of the rank-and-file and supervisors would ie.
engage in consorted activities such as strike.
supervisory employees to create their own local or
chapter from the same federation or national union. So
that's how strong it is. So ang maiiwang dyan si Dean
Capanas nalang who is obviously a managerial employee.
TN: Professors are RnF employees because their tasks
are clerical and routinary. The school assigned their
subjects.

Same federation or national union for rank-and-
file and supervisory
The last sentence of Article 255 says the rank-and-file
union and supervisors’ union operating within the same
establishment may join the same federation or national
union.
Before the amendment to Article 255, the law does not
allow due to conflict of interest a rank-and-file union from
being affiliated as a local or chapter by the same
federation or national union as the supervisors’ union.
Another thing is, what about alien employees?
They are allowed to work in the Philippines provided they
secure an Alien Employment Permit from DOLE. If they
are nationals of a country which grants similar rights to
Filipino workers, as certified by DFA of which ratified ILO
Convention 87 - Freedom of Association and the Right to
Organize and ILO Convention 98 - Right to Organize and
Collective Bargaining, they may also the right to join or
assist in the formation of a labor organization. BUT NOT
TO FORM THEIR OWN LABOR ORGANIZATION.

Because of the amendment to Article 255 strengthening
the rights of workers to self-organization, it's quite clear
that doctrine of the SC has already been abandoned
because expressly, as it is stated in the law:
"the RnF union and the supervisory union
operating the same establishment, they may join
the same federation or national union."
So it simply means that the federation or national union
can create, in the same establishment, the RnF union as
a local or chapter; can create in the same establishment,
local or chapter of the supervisory employees. So these 2
separate unions now owe loyalty to the same federation
or national union which makes it more stronger in
increasing their bargaining power in dealing with
management regarding terms and conditions of
employment of those workers within its organizations.
But based on my experience, I haven't seen one where
aliens decided to form/join a union of RnF or supervisory
employees. Most of the aliens here in the PH are holding
managerial/supervisory employees. Supervisory alien
employees are allowed to join labor organizations but in
my experience, I never see one. After all, even if they
exercise their right to self-organization, since their
employment is usually for a term and their stay in the PH
is usually coterminous with their visa,the likelihood of
them exercising the right to self-organization is far
fetched from happening. Maybe those are some reasons
why they don't do so. But they are eligible to join or assist
in the formation of a labor organization if they are so
minded.
How soon can a R&F or Supervisor be eligible to
join a
labor organization?

Example: Under the IRR: "for purposes of this section, as to

Kunwari, ako yung the USC College of Law, I was able to who may join labor unions and worker’s
form/organize a RnF Union among the faculty members. association, any employee, employed for a definite
Of course yung mga supervisory likewise, they were able period or not, shall beginning on the first day of his
to form/organize their separate union. Both of us can service be eligible for membership in any labor
become an affiliate of the federation or national union, organization."
assuming that we are independently registered. Or we
could just simply approach the federation or union to So for purposes of joining a labor organization whether it
create as a local or chapter and also to create among the be a labor union or association, on the first day of service
__________________________________________________________________________________________________
Module 9 - 11 Transcript l Labor Relations l Atty. JMM l Taucan, Evengelista, Alonzo (TEA)
of an employee, whether he is employed for a definite
period of not, he is eligible under the eyes of the law.
By the way, itong mga supervisory employees, rank in file
employees, it doesn't make nany distinctions whether
they are regular or non-regular. so even a casual
employee, a seasonal employee may be a member of a
labor organization unless he is declared ineligible under
the law.
So on the first day of service, the law recognizes the right
of the employee to be a member of a labor organization
regardless of his or her status. Casual, project, fixed term
pwede! they can all decide to form, organize, or assist in
the formation of a labor union.
In fact the IRR also mentions, all other workers,
including ambulant, itinerant, self-employed, rural
workers and those without definite employers may
form a labor organization for their mutual aid and
protection and other legitimate purposes except
CB.
Example: Market Vendors Association of the PH., Balut
Vendors Association of the PH.
What could be the primary purposes of doing so?
They could probably lobby with congress for the
enactment of pieces of social legislation to uplift and
protect their rights and welfare. In fact, collective action
is better than individual action.
Between the right of association and the right of
self organization:
1.Self-organization - is more limited because it
connotes unionism.
2.Assocition - is available to all people, employed or not
employed, as long as not contrary to law.
Aside from the managerial employees who are
ineligible to form labor organizations, are there
other classification of employees who are
disqualified?
PART 3
__________________________________________________________________________________________________
Module 9 - 11 Transcript l Labor Relations l Atty. JMM l Taucan, Evengelista, Alonzo (TEA)
In one SC case the SC made mention of the confidential
employees as ineligible to form labor organizations in the
same logic as managerial employees.
Confidentialemployees (supervisory/R&F) - usually
entrusted with confidential matters by management in
relation of labor relations. By reason of position,there
could be a conflict of interest in management if you are
allowed to join/form/assist a labor organization.
Example:
1. If you are a supervisor but at the same time your
employment is considered confidential due to your duties
and responsibilities - you are NOT eligible
2. If you are a RnF employee, generally you are eligible
but if you are a confidential employee due to your duties
and responsibilities you are likewise DISQUALIFIED.
What are the reasons they are disqualified?
The SC said under Doctrine of Necessary
Implication, since confidential employees takes the
same position as the managers, they are deemed
disqualified by reason of conflict of interest.
Can you just imagine a confidential RnF employee
becoming a member of the RnF union but at the same
time being loyal to the management? It would be a
disadvantage to the Rnf union as well as the
management. So to avoid this situation th SC said, they
are disqualified under the Doctrine of Necessary
Implication.
Confidential Employee defined by the SC:
You assist or act in a confidential capacity in regard to
persons who formulate, determine and effectuate
management policies specifically labor relations, then you
are not eligible to form/join/assist labor organizations.
But take note that the confidential relationship must exist
between the employee and his superior officer and that
officer must handle the prescribed responsibilities relating
to Labor Relations.

Before organizing a labor organization, the employees
who intend to be members of the labor organization must
draft and prepare the union’s constitution and by-laws.
In drafting the constitution and by-laws, one must be
guided by Art 250, LC. The constitution and by-laws are
the basic documents every labor union must have.
Constitution
· usually expresses the philosophy of the
organization
· Define the mission, vision.
· Incorporates the general principles that will
underscore the organization
By-Laws
· More comprehensive piece of document
· Defines the conditions of membership, admission
and retention of membership
· Define the rights and duties of members to the
union and duties and obligations of the union to
its members
· Define the list of officers, including their duties
and functions and their responsibilities to the
members
· Provides for the minimum qualifications to be a
member of a union and
· Provides for qualification to be elected as officer
TN: By-laws is more comprehensive than the constitution
but both documents are important and required under the
LC.
As to what will be the contents, the drafters have to be
guided by Art 250.
A. Initiation Fees
A labor union is not a fraternity.
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.
The fees refer to the admission fees. To be admitted, the
constitution and by-laws MAY prescribe reasonable
amount for admission fees.
__________________________________________________________________________________________________
Module 9 - 11 Transcript l Labor Relations l Atty. JMM l Taucan, Evengelista, Alonzo (TEA)
The prohibition is that it should not be arbitrary or
oppressive.
LC provides that the fines and forfeiture should not be
arbitrary, excessive or oppressive. These fines and
forfeiture refers to those disciplinary fines and sanctions
paid by a member of a union or considered forfeited in
case the member violates the constitution or by-laws.
These are fees and sanctions which must be paid by a
member for infractions committed within the
organization.
Fines and forfeitures are usually found in the by-laws. It
must be reasonable.
Example: If you misbehave and the violation is found
under the by-laws, then you can be held liable.
It is the union that can hold you liable for violating the
constitution and by-laws.
B. Full and Detailed Reports
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.
Under the constitution and by-laws, there will a provision
on payment of union dues. These union dues are
exactions made from members for the survival or
subsistence of the union. No organization may
successfully survive without funds or money so the LC
expressly provided that for the survival or subsistence of
a labor organization, it must eb allowed by law to collect
union dues from its members.
For non-union members, the union may also assess
“agency fees”, provided it is expressly stipulated in the
union’s by-laws and the non-member who is an employee
in that establishment benefits from the collective
bargaining agreement.
Reason: If you benefit from the collective bargaining
agreement despite being a non-member, the union which
is the certified bargaining agent MAY assess agency fees
TN: Agency fees will no longer require individual ready
(?) authorization because an employee cannot unjustly
(????) at the expense of another so it is fair and just that
the union who has successfully negotiated a CBA may be
able to collect agencies fees from employees who are
members of the bargaining unit and who benefit from the
CBA.
The legitimate labor organization can enter into
transactions and can get donations and can obtain
sources of money and all these financial transactions will
have to be accounted for by the officers or agents to their
members.
Term of Office
The term of office for officers is 5 years until they are re-
elected, depending on the provisions of the constitution
or by-laws.
D. Determination by Secret Ballot
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.

This is consistent in requirement of transparency in
conducting affairs. In fact, there is a provision in the LC
that authorizes Bureau of Labor Relations Director to
conduct examination of financial activities or transactions
of the labor organization as part of its visitorial and
enforcement power.
C. Election of Officers
Q. What is the minimum qualification to be a
member?
You must be an employee or worker in the establishment
where the union seeks to operate. That is the only
minimum requirement prescribed by law.
This provides an instance when members of a labor
organization may decide on questions of major policy
affecting the entire membership of the organization.
Ordinarily, a labor union has its board of trustees and it is
the board that manages and operates the labor
organization. However, LC allows the members to decide
on questions involving questions of major policies that will
affect the entire membership of the organization through
secret ballot after due deliberation.
XPN: Such secret ballot can be dispensed with in which
case the board of directors may decide on behalf of the
general membership.

Example: A is created as an independent union and A

TN: The purpose of organizing a labor union is for
collective bargaining and the right to collective bargaining
may only be exercised if there is ER-EE relationship
between the employer and the employees who are
represented by the certified bargaining union.
decides to affiliate with a federation or a national union—
that is a question of major policy.
Example: Disaffiliation by local or chapter from a
federation or national union—question of major policy.

That is the only minimum requirement prescribed by law. G. Authorized Collection

However, when you seek of elected officers, there are No officer, agent or member of a labor union shall collect
additional requirements: membership in good any fees, dues or other contributions in its behalf or make
standing, which means you are not delinquent in paying any disbursement of its money or funds, unless he is duly
dues, fully compliant with the constitution and by-laws. authorized pursuant to its constitution or by-laws.

Aside from that, LC also prescribes additional Ordinarily, you have the President, Vice-President and
qualifications to be elected/appointed as officers and one
Secretary of a labor organization. Each of these officers
of which is: not convicted of a crime involving moral
will have defined duties and functions found under the
turpitude. A crime involving moral turpitude connotes
constitution and by-laws and they will have to faithfully
breach of trust which affects the integrity of the individual
abide with it. Aside from that, they cannot make
ie. estafa—disqualified. disbursement unless authorized by the constitution and
by-laws.
__________________________________________________________________________________________________
Module 9 - 11 Transcript l Labor Relations l Atty. JMM l Taucan, Evengelista, Alonzo (TEA)

K. Salaries and Compensation of Officers
The constitution and by-laws shall provide for the salaries
of the officers in attending union meetings but the law
prohibits payment of any compensation to the officers of
the labor union.
If you are an officer, you are not an employee of the labor
union. You are a member. Therefore, you are not entitled
to any compensation for services rendered.
What could be allowed are salaries and expenses due to
their positions provided that they are specially found in
the constitution and by-laws.
Union Dues
If you are a member of the union, the LC allows deduction
from the union members’ wages from establishment if
there is an individual written authorization.
If there is no individual written authorization but there is
a provision in the CBA that has been duly ratified then
individual written authorization may be dispensed with for
purposes of payment of union dues.
GR: For the union to collect union dues, the union
member should execute individual written authorization.
XPN: The existing CBA contains a provision authorizing
deduction of union dues from the wages of the union
members.
Special Assessment or Extraordinary Fees
That cannot be carried by mere check or provision. The
law specifically requires that special assessment or other
extraordinary fees ie. payment to the union’s lawyer,
there must be a written resolution of a majority of all
members in a general membership meeting duly called for
the purpose.
TN: This provision has been asked in previous bar exam.
Q. In what instance may the union collect special
assessment or extraordinary fees? Would a check-
off be adequate?
No, there must be a written resolution of a majority of all
members in a general membership meeting duly called for
the purpose.
__________________________________________________________________________________________________
Module 9 - 11 Transcript l Labor Relations l Atty. JMM l Taucan, Evengelista, Alonzo (TEA)
Mandatory Activities
Ie. labor seminar, labor orientation, there is no need for
resolution for majority of members. Individual written
authorization from the members themselves will suffice.
These are just some of the salient provisions relevant.
If you become a member of a labor organization, you
have th comply with the min. qualifications and the
qualifications prescribed by the union constitution and by-
laws.
The union is authorized to prescribed conditions for
memberships and retentions of membership as long as
these conditions are not arbitrary or unreasonable.
The policy of the state is to promote unionism. If you are
against such policy, by allowing unions to be
discriminatory as regards admission as member, that is
against the policy of the state.
Any dispute between issues between a union member and
the union may qualify as an intra-union dispute and the
subject within the jurisdiction of Bureau of Labor
Relations which under the LC has the power to act on
inter-union and intra-union disputes.
Next Topic: Forming and organizing labor union, modes
PART 4
PART 4 (1st 29 minutes)
Hello Ebriwan
Today we will discuss how a labor organization is formed,
organized, and registered as a legitimate labor
organization.
We will not understand this topic without understanding
the Labor Code. Look at Arts. 240, 241 & 244
Modes of Acquisition of Legal Personality by a
labor organization
ART. 240 Formation, Organization and Registration of an
Independent Union, Including Federation, National Union
or Industry as well as a Trade Union Center
ART 241. Formation and Organization of a Local Chapter
through the process of Chartering
ART 244. Registration of a Federation or national Union
in addition to what has been provided under Article 240.
Modes of creating, forming and organizing a labor
organization can be made either by creating an
independent union or creating a local chapter
through the process of chartering. Those were the
fundamental principles in the creation of a labor
organization.
CREATION OF AN INDEPENDENT UNION
This is the most basic union that usually exists at the
enterprise level. Otherwise known as local union.
Try to imagine yourself being employed in an
establishment and you are eligible to form and organize a
labor organization. You may want to form and organize
an independent union.
If you want to form and organize an independent union,
you have to be guided by Art. 240.
Requirements for the application and registration
of an independent union
Art. 240. An independent union shall acquire legal
personality and shall be entitled to all the rights and
privileges granted by law to a legitimate labor
organization upon issuance of a certificate of registration
based on the following requirements:
1. Pay a registration fee of P50.00
If you want to create organize and forma n independent
union you must be able to secure a certificate of
__________________________________________________________________________________________________
Module 9 - 11 Transcript l Labor Relations l Atty. JMM l Taucan, Evengelista, Alonzo (TEA)
registration which will confer upon you, a legal personality
as a legitimate labor organization.
Without a certificate of registration, your labor
organization is not considered legitimate. You could not,
therefore, exercise the rights provided by the Labor Code
to a legitimate organization. You need to acquire legal
personality and acquisition of legal personality can only
be done when you are issued a certificate of registration
as an independent union. The requirements are found in
Article 240.
A. Pay a registration fee of P50.00
- If you look at it the fee is just very
minimal because the policy of the State
is to promote unionism; encourage
workers to organize themselves into a
labor organization so that they could
exercise the right collective bargaining
and negotiation among other
constitutional rights.
- The State does not intend to make it
difficult for workers to organize
themselves into a labor organization.
- This P50.00 registration fee is merely a
regulatory fee. It is merely intended
perhaps to cover the processing of your
application for registration. Being a
regulatory fee, the fee must always be
reasonable and not excessive or
unconscionable.
- The fee is not intended to curtail the
freedom of the workers to form and
organize a labor organization. It is merely
intended to police the rank among the
labor organizations to enable the
government/State to protect the
workers; perhaps against fly-by-night or
unscrupulous labor unions.
If we do not provide a mechanism for registration, you
can just imagine unions sprouting everywhere and trying
to extract money from its members to the prejudice and
detriment of the working men. The State does not want
to do that, will not allow that to happen, therefore the
State has provided a provision for registration. If you
register then you will have to be submitting to the State
regulation and the State can closely monitor the union
and the officers managing and operating the union. The
State can therefore better protect the workers who are
members of that particular union against illegal or
unlawful acts which are usually committed by
unscrupulous or fly-by-night labor organizations.
B. Submit the names of the union officers, their
address, the principal address of the labor
union, the minutes of the organizational
meetings and the list of the workers who
participated in such meetings.
- These are the basic circumstances that must
be disclosed whenever you apply for the issuance
of a certificate of registration.So at least the
Government would know, who are these people
who would be managing and operating the union;
who are these people who would be collecting
union dues from its members, people who can be
held accountable in case there is misuse or
maladministration of the union’s affairs.
C. In case the applicant is an independent union,
the names of all its members comprising at least
20% of all the employees in the bargaining unit
where it seeks to operate.
- This is one requirement that distinguishes the
registration of an independent union from the
registration of a local or chapter through the
process of chartering
- If there are, for example, 30 USC rank & file
faculty members so 20% of 30 would be 6. I need
to subit the names of at least 6 rank & file faculty
members together with my application for
registration.
- These members must be employees in the
bargaining unit where the applicant union seeks
to operate.
20% is not required in Chartering: another mode of
creating, forming or organizing a labor organization.
Why? Because the State prefers the creation of a local or
chapter through the process of chartering more than an
independent union.
__________________________________________________________________________________________________
Module 9 - 11 Transcript l Labor Relations l Atty. JMM l Taucan, Evengelista, Alonzo (TEA)
Between an independent union and a local chapter
created through the process of chartering.
The State favors yung local chapter being formed and
organized as a labor organization, because if you are a
local or chapter of a federation or a national union which
issued you a “charter certificate”. Then at least your
bargaining power is stronger compared to an independent
union that operates at the enterprise level.
IOW, if I were to form and organize an independent union
at the USC SOLG involving yung mga rank and file faculty
members. Small-time lang ako because I only exist in the
University of San Carlos.
I would prefer to be a local chapter of a federation or a
national union like the Associated Labor Union - Trade
Union Congress of the Philippines, then I would, in effect,
be backed up by a larger Labor organization. In terms of
bargaining strength, in terms of bargaining resources, I
would be better off than just a mere independent union.
Of course, their powers as defined under the Labor
Code are, more or less, the same. But what I’ trying
to say is that there is more strength if a local chapter is
created by a federation or national union compared to a
mere independent union.
In my opinion it would be difficult to get 20%, for example
if you have 1000 employees, the 20% of 1000 is 200
employees. You might say that is a small group of people,
but when you start recruiting them to be a member of
your union, that is when you realize it is difficult to recruit
them. So, even in student council, if the students do not
want to be part of that student council, the recruiters
would have a difficult time inviting them to be members
of the student council. Ganyan din sa pag form and
organize ng Independent Labor Union.
This is the most important significant requirement which
distinguishes it from the other modes of creating labor
organization.
D. If the applicant union has been in existence
for one or more years, copies of its annual financial
reports; and
-
As you know, the union collects money from its
members for its survival and its existence. The
 union may accept donations from sources outside
the organization. Therefore it is duty bound to
render a full and detailed report of these financial
transactions.
- If less than 1 year, no need.
E. 4 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 constitution must be ratified by at least
majority of all the union members or by such
number of votes as may be provided for under
the union’s constitution and by-laws.
TN: This list of requirements mentioned are the
same requirements that must be submitted for
registration if the applicant for registration is a:
1. Federation
2. National union/Industry
3. Trade Union Center
For the Federation or NAtional Union, go to ART.
244 for additional requirements.
ART. 244 Additional Requirements for Federations
or National Unions
a. Proof of the affiliation of at least 10 locals
or chapters, each of which must be duly
registered collective bargaining agent in
the establishment or industry in which it
operates, supporting the registration of
such applicant federation or national
union; &
- *gi basa ug utro an provision*
- You can just imagine ha, an independent
union, operates at the enterprise level, if
you look at the federation or national
union, it is a much larger type of
organization. In fact, they cannot secure
a certificate of registration unless there is chapter. The chapter shall acquire legal personality only
proof of affiliation of at least 10 locals or for purposes of filing a petition for certification election
chapters.
- Example: In my first example, we have
an independent union consisting of the
USC College of Law rank and file faculty
members. That is for USC. now if there is
__________________________________________________________________________________________________
Module 9 - 11 Transcript l Labor Relations l Atty. JMM l Taucan, Evengelista, Alonzo (TEA)
a federation or national union like for
example the Associated labor union ALU-
TUCP, that is one of the largest most
respected labor organization in the
country. This ALU-TUCP has an affiliate
of at least 10 locals or chapters: 1 local
chapter from UC, 1 local chapter from
USPF, 1 local chapter from Ateneo
College of Law, 1 chapter from UV and so
on and so forth. At least 10. That
federation can apply for registration as a
federation or national union. Each of
these local chapters/independent unions
is required to be a Certified Bargaining
Agent in the establishment wherein it
operates.
b. The names and addresses of the companies
where the locals or chapters operate and
the list of all the members in each company
involved.
- Gi basa nasad ang provision.
- So the Government can verify that there in fact
exists a Certified Bargaining Agent which is
affiliated with this federation or national union.
This is really more of understanding the
requirements, not memorizing what is the
checklist of requirements.
Let us now go to Article 241. Another mode of forming
and organizing a labor organization is the creation of local
chapter through the process of “chartering”.
Again, I repeat, the first was forming and organizing an
independent union. The second, forming and organizing
a labor organization is the creation of local chapter
through the process of “chartering”
Art. 241 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
from the date it was issued a charter certificate.
- That is the 1st paragraph
How is a local chapter created?
 - It is simply created by a duly registered
federation or national union, issuing a charter
certificate creating a local chapter.
- The certificate of creation of a local chapter will
be issued by the government once the applicant
local chapter is able to submit a certain list of
requirements; or
- The federation or national union acting on behalf
of the local chapter is able to submit a certain list
of requirements.
- But here it is simply a shortcut of everything. You
want to create a local chapter? Just get a
federation or national union, which is duly
registered, to issue you a charter certificate. And
from the date you are issued a charter certificate,
then that local chapter or the federation or
national union on behalf of the chapter may now
file a petition for certification election, but only
for that limited purpose
- IOW, if you are a local union, you cannot file a
petition for certification election without a
certificate of registration issued by the
government.
- But here, a local chapter that has been
created as such, through the issuance of a
charter certificate by a federation or
national union will suffice to confer legal
personality upon the local chapter to file a
petition for certification election. That’s the
difference there.
- Yung independent union, before it can file a
petition for certification election, it must be issued
a certificate of registration which will only be
issued by the government once they have
submitted all the requirements mentioned earlier.
… once they have submitted all the requirements I have
mentioned earlier.
But in the case of a local chapter, it can already exercise
the rights of a legitimate ahor organization but limited
solely to filing a petition for certification election once it
has been issued a Charter Certificate by a duly registered
__________________________________________________________________________________________________
Module 9 - 11 Transcript l Labor Relations l Atty. JMM l Taucan, Evengelista, Alonzo (TEA)
federation or national union; that is the big difference
there!
Why is that so?
Because as I’ve said, the State favors the creation of a
local chapter because if a local chapter is created by a
federation or a national union, there is more bargaining
strength, more bargaining power and more bargaining
resources, and so on and so forth. And if you have more
bargaining power and resources you have better leverage
to deal with management for the betterment of the terms
and conditions of the workers employment. So much
better compared sa mga small-time independent unions.
So let me continue…
Art. 241 Second Par.
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 chapters officers, their
addresses and the principal office of the
chapter;and
b. the chapters constitution and bylaws:
provided that where the chapters constitution
and bylaws are the same as that of the federation
or the national union, this fact should 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.
(Atty.’s emphasis on the requirements)
a. You see, here, in the creation of a local to the
process of chartering, what you submit are the
names of the chapter’s officers and their
addresses as well of course the address of the
place where the chapter will operate. YOU DO
NOT SUBMIT THE NAMES OF THE MEMBERS OF
THE LABOR UNION.
b. In fact you can dispense with the substitution of
the constitution and by-laws if the constitution
and bylaws of the chapter are more or less the
same as that of the federation or the national
 union, So you need to prove that they are more
or less the same as that of the national union’s.
So from a long list of requirements in creating and
organizing an independent union, the law came up with a
very short list of requirements in the creation of a local
chapter to the process of chartering.
So for example the local chapter has been created by a
federation or a national union through the issuance of a
charter certificate, from the date of the issuance of the
charter certificate, the local chapter is now entitled to file
a certification election. If it does not want to disclose its
identity, it may have the federation or union to act on its
behalf to be the one to file for certification election.
Now assuming that the certification election has
prospered and it resulted in the local chapter as the
certified as the sole exclusive bargaining agent, in order
for that local chapter to exercise all the other rights and
privileges of a legitimate labor organization, all that it
needs to do is to submit the 2 additional requirements
under Art. 241. (discussed above)
So if you notice, the 20% requirement applicable to the
creation of the independent union is not found in Art. 241
when it comes to the creation of a local chapter to the
process of chartering. As long as you have a sizable
membership that would function the union then it's more
than adequate to organize a local chapter. Wala syang
minimum number of people but of course it must be
sizable enough. You must have at least a set of officers
to run the local chapter. If you are created by a federation
or national union, it can simply guide you, supervise and
control you in the cooperation of the local chapter.
Anyay, if you win in a certification election, itong local
chapter has been certified as an exclusive bargaining
agent, one of the union security clause that can be
negotiated by this local chapter is what is otherwise as a
CLOSE SHOP AGREEMENT wherein all employees in the
establishment may have to become members of the
certified bargaining union. So dadami din yung
membership ng local chapter eventually when that local
chapter has won the certification election and certified as
the sole exclusive bargaining unit. So that;s the least of
its weary - ang membership.
But let’s make this clear: if it were an application of
TOPIC: Worker’s Association independent union, federation or national union or
__________________________________________________________________________________________________
Module 9 - 11 Transcript l Labor Relations l Atty. JMM l Taucan, Evengelista, Alonzo (TEA)
Of course the Labor Code about the registration of a
worker’s association. So it comes to this, your DO No. 40-
03 as amended. Under these implement rules there is a
provision on registration of labor organizations and it
mentions worer’s association. So meron syang checklist
of requirements. NO NEED GO OVER EACH ONE because
the requirements are self-explanatory and what you have
to do is just to submit these requirements.
TOPIC:
For purposes of affiliation, for example you are an
independent union and you want to strengthen your
organization by affiliating with the federation or nation
union, there’s also here (DO 40-03) the requirements of
affiliation.
TOPIC: Action on Application for Registration
Action on Application for Registration is conferred upon
the Bureau of Labor Relations.
But when you submit the requirements for application,
you submit that with the regional office of the DOLE
where the union applicant seeks to principal operate and
that application will have to be processed by the Labor
relations Division.
To know what is a Labor Relations Division, take a look at
DO 40-03!
Labor Relations Division: Sila yung nag pro-process
because they have a Labor organization registration
and collective bargaining agreement registration
unit. Aside from the MED (??) Arbitration unit, within the
Labor relations division, They are tasked to process the
application for registration but the power and authority to
act belongs to the Bureau of Labor Relations. In fact, the
power to cancel union registration likewise belongs to the
Bureau.
So those are the modes of forming labor organizations.
It’s just a matter of choosing which one is best for you.
Checklist of requirements is quite easy to understand
once you have fully submitted the same then it will be
examined by the Labor Relations Division. And if your
application is complete there is nothing missing there you
could expect the issuance of the certificate of registration.
industry or a trade union center, what will conferred Under the labor code, if the certificate of registration is
personality upon then is a Certificate of Registration. denied for example by the labor relations divisions office
of the DOLE, an appeal may be brought by the aggrieved
When will they acquire legal personality? party to the bureau of labor relations.

It is from the date of issuance of that Certificate of
registration.
On the other hand, when it comes to the creation of a
local chapter the processo fc bartering what is issued by
the labor Relations Division Or the Bureau as certificate
of creation of local chapter.
These are different sets of documents!
Next Topic: Rights of a Legitimate Labor
Organization.
We will assume that you have been issued a certificate of
registration or a certificate of creation of a local caoter,
since you have been issued once, you can now exercise
the rights of a legitimate labor organization!
PART 5
On the other hand, if it were the Bureau of Labor relations
that acted and eventually denied the application for
registration, since the bureau is exercising its original
jurisdiction, an appeal may be brought to the Sec. of
DOLE.
What instances do you think when an application for
registration will be denied?
If you failed to submit and comply with the requirement
of registration, well that may be an instance for the denial
of the application for registration. Remember, we made
mention of the long list of requirements for union
registration?
Ex: If you're applying for registration as an independent
union, and you failed to submit the names of the
members comprising at least 20% of the employees in
the bargaining unit, then obviously your application for
registration will be denied.

Last time, we made mention of the registration of the
labor organization and we specifically mentioned an
independent union, local or chapter or a chartered local,
federation or national union as well as a trade union
center. And we discussed the power and authority of the
Bureau of Labor relations to act on applications for
registration of these labor organizations.
For purposes of approving/denying an application for
registration, please take note of the meaning of the
Bureau of Labor Relations.
Art. 219 (b). “Bureau” means the Bureau of Labor
Relations and/or the Labor Relations Divisions in the
regional offices established under PD No. 1, in the DOLE.

Please don’t also forget that if the application for Actions on applications for registration may be acted by
registration is approved by the bureau of labor relations: the Labor Relations Divisions in the regional office or the
1. a certificate of registration will be issued or Bureau of Labor Relations itself, so as not to create
2. A certificate of creation of a local or chapter will confusion.
have to be issued.
On the other hand, for today, we will discuss the grounds
And from the date of issuance will be the date when the for cancellation of union registration, if we have finished
Labor Organization shall acquire legal personality to discussing the application for union registration, we also
exercise all the rights of a legitimate labor organization. have to know whether certificate of registration of a labor
organization may be susceptible to cancellation.
Now, please take note that there will be some instances Let’s look at the Labor Code:
where the certificate of registration be denied by the
Bureau of labor relations. Art. Cancellation of registration.
The certificate of registration of any legitimate labor
organization, whether national or local, may be cancelled
__________________________________________________________________________________________________
Module 9 - 11 Transcript l Labor Relations l Atty. JMM l Taucan, Evengelista, Alonzo (TEA)
by the bureau after due hearing, only on the ground all, and that will also be a ground for the cancellation of
specified in article 239 ( now article 245) hereof. union registration.

So, it’s quite clear here that the power and authority to
act on application for registration of a labor organization
is vested upon the Bureau of Labor relations. It is also the
Bureau, upon Art. 245 that may order the cancelation of
a certificate of registration of any legitimate labor
organization, whether national or local.
b.) So that's how important it is also to truthfully provide
the information on the names of the officers including the
election of these officers because if there's any
misrepresentation fraud, in connection with the election
of these officers then that's also a ground for cancellation
of union registration.

The grounds for cancellation are limited only to the c.) For voluntary dissolution by the members, you have
grounds spelled out in Art. 247 of the Labor Code. to read that in connection with the succeeding article:

Art. 247. Grounds for cancellation of union
registration.
The following the constitute grounds for cancellation of
union registration:
a. Misrepresentation, false statement or fraud in
connection with the adoption a ratification of the
constitution and bylaws or amendments thereto,
the minutes of ratification and the list of members
who took part in the ratification
b. Misrepresentation, false statements or fraud in
connection with the election of officers, minutes
of the election of officers and the list of voters
c. Voluntary dissolution by the members.
(Atty. explained each ground)
Art. 248. Voluntary cancellation of registration.
The registration of a legitimate labor organization may be
cancelled by the organization itself. Provided that at least
two-thirds of its general membership votes, in a meeting
and duly called for that refers to the organization:
provided further, that an application to cancel
registration is thereafter submitted by the board of the
organization, attested to by the president thereof.
Now voluntary registration by the members is of course
one of the newest or recent grounds for cancellation of
union registration. In the past, when the union is
registered with a certificate of registration, the union will
last indefinitely. There is no expiration of the registration
of the labor organization that was to case.

a.) So that’s how important the constitution and by-laws Now, however while it is true that a certificate of
are - if there’s misrepresentation, false statement or fraud registration will be valid indefinitely until it is cancelled by
in connection with the adoption of a ratification of the the appropriate agency in accordance with the labor code,
constitution and bylaws - that is clearly recognized by the we have to emphasize that the law now allows the
Labor Code as a ground for cancellation of union members themselves to voluntarily dissolve.
registration.
So all they're going to do and all they need is just a board
As I’ve mentioned earlier, in order for the union’s resolution authorizing the dissolution of the organization
constitution and by-laws to be effective, it also needs to and that board regulation being ratified by at least two-
be adopted or ratified by the union by a vote of majority thirds of all its members in a meeting duly called for the
of all its members or as otherwise may be provided in the purpose of dissolving the organization. Now, once they
union’s constitution and by-laws. have this board resolution they have the vote of
ratification of at least two-thirds of all its members then
If the union of rexample submits an application for the union may now file an application with the bureau of
registration of a labor organization and fraudulently writes labor relations for the cancellation of its registration using
in the application that the constitution and by-laws have these documents to support their application.
been ratified when in fact it were not,
Once the bureau finds out that the application for
Or the union for example submits a list of individuals who cancellation of union registration satisfactorily meets the
purportedly ratified it when in fact it was not ratified at requirements of the law then the bureau can act on it and
__________________________________________________________________________________________________
Module 9 - 11 Transcript l Labor Relations l Atty. JMM l Taucan, Evengelista, Alonzo (TEA)
order the cancellation of union registration and once the
cancellation becomes final then that means there's no So it would depend on who acted on the application for
appeal from the order of cancellation it will now have the cancellation of union registration or denial thereof.
effect of voluntarily dissolving the labor organization And then the appeal:
itself. So that's the way how it works.
from the Labor Relations
This is a new provision and there's no Supreme Court case !
yet involving this matter.
to the Bureau within 10 calendar days.

Those are the limited grounds on cancelation of union

registration. In the past there were so many grounds for
cancellation of registration. The Congress says (I can’t
from the BLR
understand)... Right to self-organization… now has
!
decided to narrow down the grounds for cancellation into
three. I’d like you to memorize these grounds because I to the Sec. of DOLE within 10 calendar days.
have been waiting in the bar examination for a question
asking the examinee to provide the grounds for
cancellation of registration. It's never been asked in the
bar examination. And if there’s no more appeal then at the level of BLR and
the Sec. As the case may be then of course, we can use
To repeat, when you speak of “Bureau”, under the the Rules of Civil Procedure:
definition of terms it refers to the Bureau of Labor
Relations and/or Labor relations Division in the regional Rule 65 on Certiorari to the CA and eventually to the SC
office. under Rule 45.

● If the cancellation of union registration is acted Finished!

upon the Labor Relations Division in the regional
office, an appeal may be brought to the Bureau
of Labor Relations
● If the cancellation of registration is acted upon by MOD 10 part 1 (1-17:00 min)
the Bureau of Labor Relations itself, as in the case
of certificate of registration of a federation or Rights of Legitimate Labor Organization
national union or trade union center an appeal
may be brought directly to the Sec. of DOLE. JMM: Earlier on we defined what is a labor organization
and we also made mention when a labor organization is
TN: The Sec of Labor may act on the application of considered legitimate. Here, in Article 251 only a
certificate of registration and has the power to order legitimate labor organization which is conferred by law
cancellation of union registration. certain rights and the rights are animated 1 by 1 in article
251.
Of course, if the matter of cancellation of union
registration reaches the Bureau of Labor Relations and
there is no more appeal before the Bureau, then Article 251. Rights of legitimate labor organization
application of certiorari may be brought directly to the CA. - a legitimate labor organization shall have the
right:
However, if the BLR exercises original jurisdiction on the
cancellation of union registration and the appeal is a. To act as the representative of its members
brought to the Sec. of DOLE, then application for certiorari for the purpose of collective bargaining
may be filed with the CA from the decision or order of the
Sec. of DOLE.
__________________________________________________________________________________________________
Module 9 - 11 Transcript l Labor Relations l Atty. JMM l Taucan, Evengelista, Alonzo (TEA)
JMM: Take note, when we mentioned what is meant by proceedings before the labor arbiter or other government
labor organization we said that it's not limited only to a agency. So it also clearly illustrates that labor
union. It may also include workers' associations. Here organizations enjoy a distinct and separate personality
when the law says “to act as the representative of its from its officers and members.
members for the purpose of collective bargaining” it refers
to a union or labor union because a labor union exists for If the labor organization who legitimately acts on behalf
the purpose of collective bargaining as distinguished from of its members in filing a complaint against the employer,
a mere workers association which exists for the purpose the SC described that as a “representative suit” not as a
of protection and mutual aid of the members. “class suit”. And if you look at your rules of civil procedure
there's a provision there on what we call a representative
A labor union that is considered a legitimate labor suit.
organization has a personality separate and distinct from
its members. And as a person by itself that is created by b. To be certified as the exclusive
law a Labor union can act as an agent for its members. representative of all the employees and an
appropriate bargaining unit for purposes of
Take note: the labor union is composed of individuals. collective bargaining
These individuals are called members of the labor union.
So when the law says “to act as the representative of its JMM: So under our state of labor laws, a legitimate
members” it means that it acts as an agent of its principal. organization that has been certified as the sole and
The Principal are the members of the labor union. exclusive bargaining agent may exercise the right to
Applying the principle of agency under our civil code as collective bargaining and negotiation on behalf of its
between the Labor union and the members, the union is members. Therefore, it requires that before a legitimate
considered as the agent while the members are organization can exercise the right to collective bargaining
considered the principal. As an agent, we can safely say and negotiation, it must be first certified as the sole and
that it is considered as an extension of the personality of exclusive bargaining agent. That is usually done through
its principal. There's Only one person, the union acting as a petition for certification election or through a
an agent on behalf of its members. certification by the regional director of the DOLE as the
sole and exclusive bargaining agent, we call it the SEBA
The representation referred to here is for purposes of certification.
collective bargaining. So it means that if one is a
legitimate labor organization, it can act on behalf of its c. To be furnished by the employer, upon
members in order to negotiate and bargain with the written request, with its annual audited
employer for a collective bargaining agreement acting in financial statements, including the balance
its capacity as an agent; to act as a representative of its sheet and the profit and loss statement,
members for the purpose of collective bargaining. So within 30 calendar days from the date of
when you negotiate a CBA on behalf of your members, receipt of the request, after the union has
you're acting as a representative of your members. An been duly recognized by the employer or
agency is created by law for the purpose of authorizing certified as the sole and exclusive
the union to negotiate and bargain with the employer on bargaining representative of the
behalf of the members of that organization. It's quite employees in the bargaining unit, or within
repetitive class but that’s how simple this provision is. 60 calendar days before the expiration of
the existing collective bargaining
We can also say that as an agent of the members the agreement or, during the collective
union can also initiate a complaint on behalf of its bargaining negotiations.
members. It can also act in defense of its members
against management action for example. So if the JMM: Itong letter c naman, it's the right of the sole and
management dismisses some members or officers of the exclusive bargaining agent to be furnished of the financial
union, the union can also act as an agent or statements by the employer The law however requires a
representative of these members or officers even in written request made by the sole and exclusive bargaining
__________________________________________________________________________________________________
Module 9 - 11 Transcript l Labor Relations l Atty. JMM l Taucan, Evengelista, Alonzo (TEA)
agent to the employer to be furnished of the financial
statements. The law by the way also expressly provides
the different stages when these financial statements may
be furnished by the employer to the exclusive bargaining
agent.
d. To own property real or personal river use
and benefit of the labor organization and
its members
JMM: The Union, using its money, and if authorized by
the board and also approved by the general membership
may also purchase properties for the use and
administration of the labor organization and for the
benefit of its members. So it can own and when
somebody wants to donate a property to the union then
the Legitimate labor organization has the power to own
these properties and even register its properties under its
name. Because as I’ve said earlier the labor union has a
separate and distinct personality from its members once
it is a legitimate labor organization.
e. To sue and be sued in its registered name
JMM: Letter e is very common to any juridical person. So
if you're a legitimate labor organization you can sue Your
capacity as an agent officer or you can also be sued .
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
JMM: So it's a catch-all provision that will enable the
legitimate labor union to undertake all other lawful
activities that wil; benefit the organization. It could
perhaps be attending a labor congress and labor training
and seminars for the benefit of its members.
Last Par. of Art. 251:
Notwithstanding any provision of a general or
special law to the contrary, the income and the
properties of legitimate labor organizations,
including grants, endowment, gifts, donations and Under the Labor code the process that is recognized to be
contributions they may received from fraternal certified as the sole and exclusive bargaining agent is
and similar organizations, local or foreign, which through a certification election. So we have to get hold of
are actually, directly and exclusively used for their
__________________________________________________________________________________________________
Module 9 - 11 Transcript l Labor Relations l Atty. JMM l Taucan, Evengelista, Alonzo (TEA)
lawful purposes, shall be free from taxes, duties
and other assessments. The exemptions provided
herein may be withdrawn only by a special law
expressing repealing this provision.
JMM: So may tax exemption pala itong mga legitimate
labor organizations as long as they are actually directly
and exclusively used for their lawful purposes.
This is what I've been telling you about the importance of
the registration of a legitimate labor organization because
that is only when, when it's duly registered and issued an
appropriate registration certificate that it can exercise the
rights of a legitimate labor organization.
SUMMARY:
JMM: Under article 251, to sum it up, you must know
when a labor organization is considered legitimate and
you must know when a legitimate labor organization is
certified as the sole and exclusive bargaining agent before
it can exercise certain rights of a legitimate labor
organization.
So I repeat, in order to negotiate and bargain a CBA,
it is not adequate that the labor organization is
legitimate, it also requires that it must be certified
as the sole and exclusive bargaining agent to be
able to exercise collective bargaining negotiation.
From this provision which right shall we discuss first and
foremost?
I think it is the right to be certified as the sole and
exclusive bargaining agent for purposes of Collective
bargaining that must be discussed. Because once a
legitimate labor organization has been issued a certificate
of registration or once a local or chapter that has been
created under the process of chartering issues a
certificate of creation of a local or chapter then the next
thing that this labor organization must do is to exercise
collective bargaining and negotiations. However before it
can exercise that, it must first be certified as the sole and
exclusive bargaining agent.
DO 40-03 as amended to provide the details of a conduct
of a certification election.
I’d like you to make your own outline for the on what is
the step-by-step procedure in the conduct of Certification
election in an unorganized establishment and in an
organized establishment based on the provisions of DO
40-03.
2. Through a request for sole and exclusive
bargaining agent certification or SEBA
certification (under the IRR)
Whichever is convenient or expeditious to the legitimate
labor organization, either can result in getting the
legitimate labor organization as the exclusive bargaining
agent of the employees of the appropriate bargaining
unit.

But before we do that, you have to first know what a

MOD 10 part 2 (1-11:00) bargaining unit should you belong to?

JMM: Last meeting we made mention of the article on
the rights of the legitimate labor organizations and among
these rights I find the right to be certified as the sole and
exclusive bargaining agent of all the employees of an
appropriate bargaining unit for purposes of collective
bargaining as the most important right. Immediately after
the labor organization has been issued a certificate of
registration, if it were an independent union, federation
or national union or trade union center; or a certificate of
creation of a local or chapter created as a local or chapter
In the process of chartering.
What is meant by a bargaining unit?
DO 40-03
(e)“Bargaining Unit” refers to a group of
employees sharing mutual interests within a given
employer unit, comprised of all or less than all of
the entire body of employees in the employer unit
or any specific occupational or geographical
grouping within such employer unit.
JMM: Let me try to illustrate the definition.

In other words, once the employees who are eligible to
exercise the right to self-organization decided to form,
organized and register a labor organization and once it
has been issued a certificate of registration that confers
upon it legal personality, What it needs to exercise
immediately is the right to be certified as the exclusive
bargaining agent of all the employees of the appropriate
bargaining unit for purposes of collective bargaining.
Right now when the Labor Code provides for those
employees who are eligible to form and organize a labor
organization, we noted rank and file employees and
supervisory employees.
Rank and file employees belong to a group of employees
In a particular establishment which is the given employer
unit.

So in other words, what should be in the mind of a Supervisory employees belong to a separate group of
legitimate labor organization is to exercise the right to employees that may exist in an establishment for a given
collective bargaining and negotiation. However, it cannot employer unit.
yet exercise the right to collective bargaining and
negotiation unless and until it has been certified as the So from the classification of employees who are eligible
sole and exclusive bargaining agent. Then the legitimate to exercise the right to self organization it’s quite clear
labor organization must therefore proceed first and that the labor code provides for at least two bargaining
foremost to get certified. units
1. The bargaining unit of the rank and file
Under the labor code and in the IRR, there are two ways employees
of getting verified as they saw an exclusive bargaining 2. Bargaining unit of the supervisory employee
agent:
1. Through certification election 9founf in the LC)
I say “two separate bargaining units” because we cannot
merge the rank-and-file bargaining unit and the
supervisory bargaining unit into one. We cannot make it
__________________________________________________________________________________________________
Module 9 - 11 Transcript l Labor Relations l Atty. JMM l Taucan, Evengelista, Alonzo (TEA)
into one and the same because the law is very clear when
it disqualified the supervisory employees from joining in
the rank-and-file bargaining unit. The same way that the
rank-and-file employees cannot also join the bargaining
unit of the supervisory employees due to the conflict of
interest.
If you look at the definition of a bargaining unit, for
example in a private educational institution and we have
identified the classifications of employees in such
institutions in to two:
1. Academic personnel
2. Non-academic personnel
Among the academic personnel would include the
teachers, the professors who may be eligible to exercise
their right to self-organization. On the other hand when
we speak of non-academic personnel we refer to non-
teaching positions which do not involve academic support
like for example those in the administrative offices or
those working in the utility section private educational
institution.
In forming and organizing a labor organization, that labor
organization cannot exist in both academic and non-
academic classification of employees. In other words, we
cannot mix the non academic and the academic personnel
into one bargaining unit. They have to be separate
because while they form the entire body of employees in
the private educational institution, the academic
personnel do not share common interests with that of the
non-academic personnel.
Teachers for example, we are provided with regular
classes. We are paid by the number of units that we
handle. On the other hand for the non academic
personnel they are not paid per hour but rather they are
paid based on time and they are not given a class
schedule.
In other words, these groups of employees do not share
common interests while they both belong to the same
entire body of employees in the same school; they do not
share mutual interest and therefore they cannot belong
to the same bargaining unit. There must be 2 separate
bargaining units one for the academic personnel and the
Because one of the items that is discussed during the
other for the non-academic personnel. preliminary conference in the conduct of a certification
election is determining the bargaining unit where the
__________________________________________________________________________________________________
Module 9 - 11 Transcript l Labor Relations l Atty. JMM l Taucan, Evengelista, Alonzo (TEA)
MOD 10 part 2 (11mins-end)
Example: Within the rank-and-file bargaining unit, there
could be:
a. regular and permanent employees
b. regular field personnel or
c. regular non-field personnel
They do not share mutual and common interest.
That is why the law says to be the exclusive agent of all
the employees in an appropriate bargaining unit. Within
the bargaining unit of the rank-and-file, there may exist
more than 1 legitimate labor organization depending on
the kind of interest they share in common.
Example: In the airline industry, there is a bargaining
unit for ground personnel and cabin personnel.
FACTORS IN DETERMINING APPROPRIATE
BARGAINING UNIT
Take note of textbook references in the factors in
determining the appropriate bargaining unit.
You will encounter “globe doctrine” wherein in
determining the appropriate bargaining unit, it is the will
of the employees that must prevail.
Another factor is the “substantial mutual interest
rule” wherein what is taken into account is the
substantial similarity at work and duties,
compensation and working conditions.
Another is the “prior collective bargaining history”
and also “similarity of employment status”
Make your own research on each of these factors. It is on
a case-to-case basis in determining what factor may be
best suited in determining the appropriate bargaining
unit.
That is the preliminaries in our discussion before we
conduct a certification election.
petitioning union seeks to operate. You will be asked by d. Conduct of prelim conference and
the med arbiter. You will be asked “what is the bargaining hearing
unit that you seek to represent? Ie. rank-and-file or e. Submission of the petition for decision
supervisory” “Within the rank-and -file, do you intend to f. Order granting the petition
establish a particular group that will represent mutual i. Resolution of ancillary
interest? Ie. regular and permanent employees or non- issues
regular and permanent employees” That is something ii. Intervention – when the
that the med arbiter will inquire and qualify from the med arbiter decides to grant or
union that files a petition for certification election. deny the same, he will also
entertain issues on intervention
Example, if the med arbiter finds out that you are trying and ancillary issues
to represent only one group of employees but these group iii. No appeal
do not share mutual interest, there is no similarities in g. Order denying the petition
duties and functions, status, compensation of benefits, i. Grounds for
then the med arbiter would recommend 2 separate denying under LC (do not mix
bargaining units. org and unorg)

Ofc, it is more desirable to have a single bargaining unit 6) Conduct of cert election proper
where there is only one sole and exclusive bargaining - Inspection of polling places
agent but it is not advisable to have always have a single - Actual voting
bargaining unit when it turns out that there is nothing in a. marking of vote
common between the employees. b. challenging of votes
c. on the spot questions including protest
d. canvassing of votes
CERTIFICATION ELECTION PROCEDURE i. appreciation of ballots
ii. compeletion of canvass
Make your own outline. First outline for unorganized and ii. results
second for organized establishment. x proclaimation of winner by the
med artibter
An establishment is considered unorganized when there x failure of election
is no certified or recognized bargaining agent or there x run of election
exists no collective bargaining agreement. x re-run of election
7) Appeal
An organized establishment is one where there exists a - Period
certified or recognized bargaining agent or where there is - Form
a CBA. - Transmittal to sec.
Follow these sequences of topics:
1) who may file a petition. Make an enumeration on 8) Sec of Labor
who is eligible. - Decision of the sec
2) Where to file – venue for petition for certification - Finality of the decision
election - Implementation of decision
3) When to file
4) Contents of petition Charot, nag vid lec pa ka
5) Procedure in the conduct of certification election
a. Raffle of the petition 2nd outline for organized establishment.
b. Notice of preliminary conference
c. Posting of the prelim conference and Next topic: Conduct of cert election.
petition f

__________________________________________________________________________________________________
Module 9 - 11 Transcript l Labor Relations l Atty. JMM l Taucan, Evengelista, Alonzo (TEA)
MOD 10 part 3 (start-14mins)
Look at IRR.
Certification election refers to the process of determining
thru secret ballot the sole and exclusive representative of
the employees in an appropriate bargaining unit for
purposes of collective bargaining or negotiation.
IRR equated certification election to a consent election.
The process also involves secret balloting wherein the
employees choose their sole and exclusive agent or
representative for the purpose bargaining.
The only difference is that in a consent election, it is one
that is voluntarily agreed upon by the parties with or
without the intervention by DOLE. While in the case of
certification election, it is usually facilitated by the DOLE
as to the conduct thereof.
NATURE OF A CERTIFICATION ELECTION
According to SC, it is a mere investigation of non-
adversary finding character to ascertain the will of the
employees as to the matter of their representation. It is
not an action nor a special proceeding.
In on other words, it cannot be described as a litigation.
It does not involve a party interposing adverse interest
against another person or party.
PURPOSE
According to SC, it has 2 fold purpose:
- Determine the appropriate bargaining unit
- Ascertain the majority representation of
bargaining agent or rep if the employees
desire to be represented at all.
During the prelim conference, med arbiter will inquire
from the party who filed the petition as to what bargaining
unit does it seek to represent.
Aside from that, the conduct and outcome of the election
will be to determine whether the employee desires to be
represented by a bargaining agent or rep. And choose
which among the LO should the employees join.
OUTLINE OF CERT ELECTION (UNORGANIZED)
__________________________________________________________________________________________________
Module 9 - 11 Transcript l Labor Relations l Atty. JMM l Taucan, Evengelista, Alonzo (TEA)
WHO MAY FILE
LC says any legitimate labor organization.
- A national union or federation issued a
charter cert may file petition on behalf of a
local chapter.
- Local chapter which has been issued a
charter cert on its own behalf.
- Independent union
- Employer, provided there is no registered
CBA in the appropriate bargaining unit
Employer would not prefer to have a CBA because they
have commitments under the CBA that they have to make
good. Since a CBA is a contract, therefore, it is considered
valid and binding between the employer and the other
party. As much as possible, they don’t want a CBA
because it cuts on their profit because it contains
economic provisions or benefits that an employer must
give, by way of contract, to their employees. Nonetheless,
LC recognizes that if an employer is requested to bargain
collectively, then he may qualify as party to file a petition.
TN: If it were the ER who files a petition, as soon as the
petition has been filed, then ER has no further role.
If the employees organize into a labor organization, they
can request their employer to file a petition so that the
labor organization may present itself to the employees as
the sole and exclusive bargaining agent.
After the ER filed the petition, it has no further role
because in a certification election, an ER is a mere
bystander, and it is not a party to the election and
therefore has no right even to oppose the certification
election.
The CE is the sole and exclusive affairs of the EEs in the
appropriate bargaining unit.
These parties I mentioned are the same parties who are
qualified to file a petition in a organized establishment.
Where to file (Venue)
Under the IRR, Regional Office of the DOLE which issued
the petitioning union certificate of registration or
certificate of creation of chartered local.
Whenever a labor organization decides to apply for
registration, it has to file it with the labor relations division
of the regional office of DOLE because it facilitates the
processing and approval of application for union
registration.
If you file it with the RO of the DOLE who maintains a
registry of legitimate labor org, he can easily verify
whether the petitioning union is a legitimate labor org
because they are the ones who issued the certificate of
registration.
TN: Only a legitimate labor organization can file for
certification election. Non-LLO = denied.
When to File
If the establishment is unorganized, then the petition may
be filed at any time…
MOD 10 part 3 (14mins to 42:33)
May be filed at any time, where there exists no registered
CBA in the bargaining unit. So it can be filed anytime kasi
unorganized siya eh. Unlike if it is an organized
establishment, there are certain periods when the petition
for certification election will not be entertained. But, if it
were an unorganized establishment, the petition
may be filed at any time.
CONTENTS OF THE PETITION
You just copy what was written in the implementing rules
as to what are the contents of a petition.
TN: Implementing rules require that the petition
for certification election, if it involves an
unorganized establishment, must be verified. This
verification is also applies if it involves a petition in an
organized establishment.
So when the IRR says that it must be verified, it must be
under oath; it must be a notarized certification election.
Just take note of the other requirements on how to
prepare the petition for certification election.
By the way, among the salient features of a petition for
certification election would be a statement stating that
the bargaining unit is unorganized or that there is
no registered CBA covering the employees in the
bargaining unit. One of the allegations that you have to
__________________________________________________________________________________________________
Module 9 - 11 Transcript l Labor Relations l Atty. JMM l Taucan, Evengelista, Alonzo (TEA)
write in a petition for certification election, if the
establishment is not organized, is that you have to
indicate there that the bargaining unit unorganized or that
there is no registered CBA covering the employees in the
bargaining unit because if there is a CBA then your
petition may be barred under the so-called “contract-
bar rule”.
On the other hand, if you do not make mention that the
petition involves an unorganized establishment then the
mediator arbiter might be mistaken to believe that your
petition may be denied on the ground, say for example,it
is being barred by the one-year certification year. So, you
have to disclose to the arbiter by writing in the petition
that the establishment is not organized then under Labor
Code, the arbiter shall automatically conduct a
certification election. That means that he shall follow the
conduct and procedure prescribed in holding a
certification election.
Q: Who has the jurisdiction over a petition for
certification election?
A: Mediation Arbiter (Med. arbiter) in the regional
office of the DOLE
Under the set-up of the DOLE, there is a Labor Relations
division in the Regional Office of the DOLE which consists
of the Med. Arbitration Unit which is where we can find
the office of the Med. Arbiter.
Once the petition is filed with the regional office of the
DOLE which issued the certificate of registration, then
that petition will be raffled to a med arbiter; assuming
that there are 2 or more med arbiters. If there’s only 1,
there’s no need to raffle. The raffling of the petition will
be done by the Regional Director of the DOLE.
Q: What will now take place next?
A: Notice of Preliminary Conference
So once the petition has been raffled off to a specific
Mediation Arbiter, then the med arbiter will now serve a
notice of preliminary conference and a copies of which will
have to be served to the petitioning union and the
incumbent bargaining agent if any. Of course the
employer will have to be served with a copy of the
petition.
Serving the petition to the employer will not make the
employer a party because the employer is never a party
to certification election. The employer’s notice will only
serve to let the employer know that there is a legitimate
labor union existing within the establishment and seeking
to represent the employees in the bargaining unit as its
sole and exclusive bargaining agent. So at least, the
employer would know that if the the certification election
would prosper and a sole and exclusive bargaining agent
has been certified then it will be dealing with said
bargaining agent for purposes of collective bargaining or
negotiation.
It’s kind of absurd to imagine a situation where there will
be a sole and exclusive bargaining agent and the
employer would not even know who it is. That is the
reason for the service of a copy of the petition to the
employer.
NOTICE OF PRELIMINARY CONFERENCE SHALL BE
POSTED IN CONSPICUOUS PLACES IN THE
ESTABLISHMENT together with a copy of the
petition
Now, the implementing rules also require that the notice
of preliminary conference shall be posted in conspicuous
places in the establishment together with a copy of the
petition.
Since the petition for certification election will affect the
employees in the bargaining unit who are qualified to vote
and participate in the election then the posting of that
notice of preliminary conference including the petition
itself will serve as notice to all these employees
concerned; that there is somebody who wants to
represent them as the sole and exclusive bargaining agent
for purposes of collective bargaining or negotiation.
Once completed, we will now expect the Mediation
Arbiter to act on the petition. Acting on the
petition could be:
1. To grant the petition and order the conduct
of certification election; or
2. Deny the petition.
Before the Mediation Arbiter can act on the petition, the
mediation arbiter also has the power and authority to
entertain intervention. So if there exists another labor
organization who may be interested to participate in the
election, the med arbiter may allow the intervention of
this legitimate organization.
TN: Any employee has the right to intervene for
the protection of his individual right.
It’s not only the petitioning union that can appear and be
recognized during the preliminary conference but also any
employee has the right to intervene in order to protect his
individual right.
How would the mediation arbiter act on the petition? He
could grant or deny the petition. In resolving the petition,
the med arbiter is also allowed to rule on ancillary
issues. For example on issues pertaining to the existence
of employer-employee relationship that has been properly
raised before the med arbiter; this could be an ancillary
issue that may be resolved by the med arbiter in his order
granting or denying the petition for certification election.
If there are grounds to deny, then the med arbiter will
deny the petition. If there are no grounds for denial then
the med arbiter will grant the petition and order the
conduct of certification election especially since the
establishment that we are discussing is an unorganized
establishment.

CONDUCT OF PRELIMINARY CONFERENCE & GROUNDS FOR DENIAL OF THE PETITION

HEARING (Unorganized Establishment)

Q: Who will preside? 1. If the petitioning union is not listed in the

Registry of Legitimate Labor Unions or,
A: Mediator Arbiter even if it is registered, its certificate of
registration has been cancelled with
One of the items that will be threshed out will be finality
determining the appropriate bargaining unit that the a. That means it is no longer a legitimate
petitioning union seeks to represent. labor union. If it’s not a legitimate labor
union then it has no right to be certified
__________________________________________________________________________________________________
Module 9 - 11 Transcript l Labor Relations l Atty. JMM l Taucan, Evengelista, Alonzo (TEA)
 as the sole and exclusive bargaining
agent. Therefore, obviously the med
arbiter will have to deny the petition.
2. Failure of the Local Chapter or National
Union or Federation to submit a duly issued
charter certificate upon filing of the
petition
a. We said earlier that a National Union or
Federation may, on behalf of the local/
chapter, file a petition for certification
election on behalf of the latter, provided
that it has issued a charter certificate.
b. If the National Union filed the petition,
but there is no proof that it has issued a
charter certificate then, the petition for
CE will be denied.
3. Non-appearance of the petitioner for 2
consecutive scheduled conferences before
the Mediation Arbiter despite due notice
a. That will indicate lack of interest on the
part of the petitioning union
Of course, THERE CAN BE AN APPEAL ON THE
RESULTS OF THE ELECTION
If the establishment is unorganized.
Once the order granting the petition becomes final
and executory the med arbiter will have to let the
regional director assign an election officer.
An election officer is not the same as a med arbiter. The
election officer will be the one to facilitate the holding of
a certification election.
Q: So what will the election officer do here?
A: The election officer will prepare and issue a notice of
pre-election conference.
The employer there will be required to submit the certified
list of employees in the bargaining unit or where
necessary, the payroll covering the members of the
bargaining unit, at the time of the filing of the petition. So
at least we will know who are the qualified voters to
participate in the election.

4. Absence of employer-employee TN: Failure of any party to appear during the pre-
relationship between all the members of election conference despite notice shall be
the petitioning union and the considered waiver of its right to be present, to
establishment where the supposed question or object to any of the agreement
bargaining unit is sought to be represented reached in the pre-election conference.
a. To be a member of a union, one must at
least be an employee of the HOWEVER, this shall not deprive the non-
establishment where the union operates. appearing party of the right to be furnished notices
of and to attend subsequent pre-election
The other grounds will apply if the establishment is conferences.
organized; on top of the 4 abovementioned grounds.
INCLUSION/EXCLUSION PROCEEDINGS
What you expect is an order, granting or denying
the petition. The election officer will also conduct inclusion/exclusion
proceedings. Include those who are qualified and exclude
Once the order grants the petition there is no appeal those who are not qualified to vote in the certification
from that order. Why? Because the implementing rules election.
prohibit an appeal from an order granting a
petition if the establishment is unorganized. In the inclusion/exclusion proceedings, you know who
under the Labor Code are not eligible to exercise the right
If organized, then appeal is allowed. Both from an to self-organization, and you know who in the labor code
order granting and from the order on the results of the are not eligible to participate in a certification election.
election if the establishment is organized. So, if you find that in the list of employees provided by
the employer that there are employees who were
excluded then you have to move for the inclusion. If there
__________________________________________________________________________________________________
Module 9 - 11 Transcript l Labor Relations l Atty. JMM l Taucan, Evengelista, Alonzo (TEA)
are employees who are included but they are not eligible
to vote and participate in the election then they have to
be excluded.
The election officer does not have the power and
authority to rule.
If the union moves to exclude the employee from the list
of qualified voters then the election officer will simply
take note of that. And separate the names of that
challenged voter and place the name in a separate list
under challenged voters. There will be a list of qualified
voters and there will be a list of challenged voters.
Another thing that will be threshed out in the pre-
election conference: DATE & PLACE of the election
Date will have to be done on a regular working day.
Unless circumstances will require otherwise.
The Place of the certification election will have to be at
the employers premises unless there are circumstances
that would require otherwise. This way, the employees
can make themselves readily available.
The mechanics of the election will be threshed out
at the pre-election conference before the election
officer.
1. Date and time of the election
2. Names of the contending unions, if any;
3. Description of the bargaining unit, including the
list of eligible voters and the list of challenged
voters.
Posting of the notice, information contained
therein and duration of the posting cannot be
waived by the union or the employer.
It is important that when the date of the election has been
fixed the employees in the bargaining unit that will
participate in the election must be notified in advance that
there is a forthcoming election, so at least they can
decide whether or not to participate in the election.
ELECTION PROPER
There will be an inspection of the polling place. When the
election officer goes to the employer’s premises to
facilitate the conduct of the election, the election officer
will ensure that the polling booths are there, the polling
place is in order and that the employer’s premises is ready
for the conduct of the election.
Under the Rules, it’s all intended to ensure the secrecy of
the ballot. In fact, even the employer is allowed to inspect
the polling place, the ballot boxes as well as the polling
booths.
There is one thing that I would like to emphasize here in
the implementing rules.
- The ballots shall be prepared by the
election officer in English and Filipino or the
local dialect.
- The number of ballots shall correspond to
the number of voters in the bargaining unit
plus a reasonable number of extra ballots
for contingencies.
- All ballots shall be signed at the back by the
election officer and authorized
representative from each of the contending
unions
- A party party who refuses or fails to sign
waives his right to do so
- Election officer shall enter the fact of
refusal or failure therefor in the records
of the case.
In the pre-election conference or immediately thereafter,
the election officer will ask the parties to authenticate the
ballots so there will be no fake ballots that will also
safeguard the integrity of the election.
ACTUAL VOTING

Under the Rules, the notice shall be posted at leastWhen is the ballot considered marked?
10 days before the actual date of the election in 2 When is a ballot considered spoiled?
conspicuous places in the company’s premises. What is the effect of spoiled ballot in determining the so-
called “double majority rule”?
What is the rule on “on the spot question and challenging
of voters”?
__________________________________________________________________________________________________
Module 9 - 11 Transcript l Labor Relations l Atty. JMM l Taucan, Evengelista, Alonzo (TEA)
These are just miscellaneous topics that you must If there is no appeal, the result of the elections shall be
remember final and executory after 10 calendar days.

AFTER ELECTION / CANVASSING OF THE VOTES
Election precincts shall open and close on the date and
time agreed upon during the pre-election conference.
Canvassing of votes shall be followed, votes will have to
be tabulated and counted by the election officer in the
presence of the petitioning union or the contending union
if any.
No motion for reconsideration is allowed before the med
arbiter.
Pag nagging final na yan then what comes next is the
exercise of the right to collective bargaining and
negotiation.

Appreciation of ballots - to determine whether spoiled MOD 10 Part 4 (1-14:00 min)

ballot or valid ballot.
PROCLAMATION OF THE WINNER
Mediation arbiter will proclaim the winner in a certification
election. Before a winner is proclaimed the election officer
will determine whether there is a valid election
DOUBLE MAJORITY RULE
To have a valid election, majority of the eligible voters
must have casted a vote and to be certified, the union
must obtain majority of the valid votes cast to be certified
as the sole and exclusive bargaining agent.
JMM: Today we will discuss, and by way of comparison,
the step by step procedure In the conduct of certification
election involving an unorganized establishment.
And as I've said, if you speak of an organized
establishment it is one where there exists a collective
bargaining agreement or there is a certified or recognized
bargaining agent.
Similar to when we discussed the topic on the procedure
of the conduct of the election on unorganized
establishment, we start with who can file?

I want you to take note of the instances when the The answer is the same as those who are qualified to file
mediation arbiter may proclaim the winner and in what for certification election in an unorganized establishment:
instances the med arbiter cannot proclaim the winner.
WHO CAN FILE:
If there is any protest raised during the election 1. Any legitimate labor organization is qualified
you must also remember how this protest must be 2. An employer when requested to bargain
formalized and how many days must this protest be collectively
formalized in order for that the med arbiter may resolve 3. Now when we speak of a legitimate labor
the same. organization Be an independent union can be a
federation or national union, it could be a local or
Take note of the items on when is there a failure of chapter Which is issued a charter certificate I can
election. When can there be a run-off election? When can be a trade union center (Leave labor
there be a re-run election? organizations are qualified to file a certification
election because they are all legitimate labor
At the end of the day, if there is a union which obtains organization)
the majority of the valid votes cast and there is a valid
election then the med arbiter will proclaim the union as
the sole and exclusive bargaining agent of the employees VENUE:
in that appropriate bargaining unit and the results of the Where do we file a petition?
election may be appealed to the SOLE within 10 calendar
days from receipt of the results of the election; whether Answer: The answer is still the same. It will have to be
organized or unorganized. filed with the regional office of the DOLE which issued a
__________________________________________________________________________________________________
Module 9 - 11 Transcript l Labor Relations l Atty. JMM l Taucan, Evengelista, Alonzo (TEA)
certificate of registration or certificate of creation for a
local or chapter.
We have said that when there is the regional office of the
DOLE, there is also what we call the bureau of labor
relations which maintains the registry of labor
organization and registry of collective bargaining
agreements. This office is in a better position to confirm
that the party who is filing for a certification election is
Illegitimate one are not.
So if the establishment is organized, we have to maintain
the stability of the CBA during its period of validity. And
as what we’ll study later on, when we talk of the CBA, it’s
valid for a period of 5 years so far as the representation
aspect is concerned and the CBA is valid for such a
number of years as may be agreed upon by the parties to
the CBA.
GENERAL RULE: So we have to maintain the stability of
the CBA and therefore we should not disturb the CBA, we
should not change or amend or set aside the CBA

WHEN TO FILE EXCEPT during the period authorized by law. So a

In an organized establishment the certification election petition for certification election if the establishment is
may be filed anytime but not on the following period: organized must be filed within the “freedom period”.
1. within 1 year from a valid certification election
consent, run off or re-run election. CONTENTS OF The PETITION
More or less the same,
Why? Because within that 1 year period the Certified
Bargaining Union is expected to initiate the negotiation of 1. The petition must be verified.
a collective bargaining agreement. So a petition for
certification election within that one year period will not Only that if the establishment is organized, the
be entertained by the Med-arbiter petition must be supported by at least the
signature of at least 25% of the employees in the
2. You cannot file the petition for certification bargaining unit. Otherwise the etiton will not be
election outside the so-called “freedom period” entertained.
which refers to the period of 60 days immediately
prior to the expiration of the CBA. If it were an unorganized establishment, the petition need
not be supported by the signature of the members. It is
So you cannot file that on the 1st, 2nd, 3rd, 4th year but adequate that the petition is signed by the officers
you can only file that on the 5th year particularly within authorized by the petitioning union.
60 days immediately prior to the expiration of the CBA.
This is so because under the law, the employer is duty The law is in effect telling the challenger: “Hey! You want
bound to recognize the representation status of the to replace the incumbent bargaining agent? Show me
incumbent bargaining agent when no certification election your support for the employees in the bargaining unit.
is filed. Outside the freedom period, the Med Arbiter will You cannot just simply attempt to replace me if you do
not entertain because the purpose there is to maintain not have the support of at least 25%.”
industrial peace and harmony within the establishment so
there must be no disturbance of the duly existing THE PROCEDURE IN THE CONDUCT OF PETITION
bargaining agreement if the establishment is an organized
establishment. After all when you speak of a petition for
1. You file the certification election and the regional
certification election the primary challenge there is to director will raffle the petition and assign it to the
challenge the representation status of the incumbent Med Arbiter who holds office in the med arbiter
bargaining agent. In other words you want to challenge unit.
the majority status of the incumbent bargaining agent. 2. The med arbiter will cause the issuance of a
You want to replace the incumbent bargaining agent as Notice of preliminary conference to be presided
the bargaining representative of the employees of the by the med arbiter himself.
bargaining unit. That is really the purpose. TN: The employer is a mere bystander and it is not a
party to the certification election and it has no right to
__________________________________________________________________________________________________
Module 9 - 11 Transcript l Labor Relations l Atty. JMM l Taucan, Evengelista, Alonzo (TEA)
oppose the petition. The Regional office of the DOLE is
also a mere bystander. Its role is simply to facilitate the
conduct of certification elections.
TN: The notice of the preliminary conference and the
notice itself must be posted in at least conspicuous places
in the establishment. The purpose of such posting is to
apprise the employees in the establishment particularly
the concerned bargaining unit that there is this labor
union who wants to present itself to the members of the
bargaining unit to be the sole and exclusive bargain in the
unit.
3. The petitioning union may appear before the med
arbiter.
Now the employer who is not the party may be present
but could not appear for any other reason. Although a
copy of the petition was sent to the employer, it does not
make him a party thereto.
What will be thresh out during the preliminary
establishment?
· The 4 grounds under unorganized petition
· That the petition was filed before or after the
freedom period of the duly registered CBA – if
organized, file only within the freedom period.
· Petition was filed within 1 year from a valid
certification election, consent re-run, or run-off
election
· Duly certified union has commenced and
sustained negotiations with the employer in
accordance with the LC within 1 year from
recording of a valid certification election, consent
run-off or rerun election – otherwise known as
the “certification year rule” or the “1 year rule”
· Dreadlock bar rule –> applies if there exists a
bargaining dreadlock which has been submitted
to conciliation or arbitration or has been the
subject of a notice of strike or lockout where an
incumbent or certified bargaining agent is a
party.

Well, the same issues, the same matter as in an Intent of the law: Prevent the maintenance of
unorganized easily during the preliminary conference. industrial stability to be disturbed.

For example the determination of the bargain unit sought
to be represented on the petitioning union will have to be
determined.
The Med arbiter will also have to try to check…
Reason: If there exists a bargaining dreadlock and it
could be a subject of a notice of strike, entertaining
the petition to challenge the incumbent bargaining
agent will only aggravate the situation.
· Failure to submit the 20% signature of employees

Evangelista Mod 10 Part 4 (14 mins-end) If there exists a ground for denial, then deny. Otherwise,
grant the petition and order the conduct of a certification
· Whether there exist any other LLO within the election.
bargaining unit; it is within the power of med
arbiter to entertain intervention from any LLO Q. If the med arbiter issues an order granting the
within the bargaining union who may want to petition and ordering the conduct of the
participate during the certification election certification of election in an organized
establishment, would that order be subject to
Petition Submitted for Decision appeal?
Med arbiter will decide how to act on the petition, to grant
to deny. Yes, it is subject to appeal. Because if in an organized
establishment, there is a certified or incumbent
bargaining agent that will continue to administer the CBA
GROUNDS OF DENIAL OF PETITION IN AN so there is no harm if the law allows an appeal from that
ORGANIZED order to the Sec. of DOLE.
__________________________________________________________________________________________________
Module 9 - 11 Transcript l Labor Relations l Atty. JMM l Taucan, Evengelista, Alonzo (TEA)
Q. If there is an appeal, what is the effect? Non-waivable: The positing of a notice including the
If there is an appeal granting the order, then there will be information that must be placed in the notice and the 10-
no holding of an election. day duration to post the notice cannot be waived by the
union.
TN: This is a salient provision that distinguishes
certification election in an unorganized and organized Reason: The bargaining unit must know beforehand that
establishment. there is a forthcoming election.
If the med arbiter, before acting on the petition, is
confronted on issues of intervention or ancillary issues ie. Election Proper
absence or lack of ER-EE relationship, it is within his Inspection
power to resolve before it formally acts on the petition for It will consider the inspection of the following:
certification election. · Polling places
· Polling booths
Assignment to an Election Officer · Ballot boxes
Once there is an order granting the petition and ordering · Etc.
the conduct of a certification election, then wait for the
finality of that order. Actual Voting
There will be issues on the following:
If it becomes final in the absence of an appeal taken to · Marking of votes
the Sec. of DOLE, med arbiter will forward the records to · Challenging of votes
the RD of the DOLE who will again assign the matter to · On-the-spot questions
an election officer.

Notice of a Pre-Election Conference

The election officer would fix the date for the holding of
a Pre-Election and he will serve the Notice of a Pre-
Election Conference and will require the parties to appear
before him.
Pre-Election Conference
The effect of the failure of the parties to appear will also
apply.
Inclusion/Exclusion Proceedings
During the Pre-election conference, the election officer
will conduct the I/E proceedings.
To be organized
· Date and time of election
· Names of the contending unions
· Description of the bargaining unit
· List of eligible and challenged voters
Posting of a Notice of Election
These information will written on a Notice of Election that
eventually will be required to be posted in at least 2
conspicuous places in the establishment to apprise the
employees of the upcoming election.
__________________________________________________________________________________________________
Module 9 - 11 Transcript l Labor Relations l Atty. JMM l Taucan, Evengelista, Alonzo (TEA)
Election Protest
If there are irregularities in the conduct of a certification
election, it may be done thru a protest and it must be
formalized within 5 days from close of the election
proceeding.
Canvassing
Once the proceeding/election will be closed, there will be
canvassing of the votes and determination of whether
there is a valid election, failure of election and etc.
DOUBLE MAJORITY RULE
In order to have a valid election, at least majority of all
the employees must cast their vote and to be certified as
SEBA then the union must obtain the majority of the valid
votes cast will be certified as the SEBA.
Appreciation of Ballots
During canvassing, there will be appreciation of ballots.
This is where the issue on valid ballots, spoiled ballots will
come into play.
Minutes
The proceedings have to be contained in the minutes and
signed by the parties.
Proclamation of Winner
Assuming there is a valid election, there will be
proclamation of winner by the med arbiter.
If there is no protest filed or if there is one but was not
formalized within 5 days from closing of the election, the
med arbiter can proclaim the winner.
If there is no challenge or eligibility issues raised, or even
if one is raised but it will not materially affect the results
of the election, the med arbiter has the power to proclaim
the results.
Order of the Results of Election
The order of the results is appealable to Sec. of DOLE.
If not appealed within 10 days, then it becomes final and
executory.
TN: Please take note when is there a failure of election,
re-run election, run-off election.
Appeal
The decision of the Sec. of DOLE on the appeal will
become final and executory after 10 calendar days, unless
a MR is filed.
If a MR on appeal is filed, then the decision of the Sec. of
DOLE will become and executory 10 days after denial of
the MR.
There is no more appeal from the decision of order of the
Sec. of DOLE but as provided in the Rules of Civil
Procedure, you can still bring the decision of the Sec. of
DOLE to CA under Rules 65 by way of certiorari on the
ground of grave abuse of discretion or lack or excess of
jurisdiction.
From the CA to SC under Rule 45 on pure questions of
law.
Next topic: Other mode of certifying as SEBA. Look at
40-01-15.
__________________________________________________________________________________________________
Module 9 - 11 Transcript l Labor Relations l Atty. JMM l Taucan, Evengelista, Alonzo (TEA)
Mod 10 Part 5
Other mode of certifying a legitimate labor union as the
sole and exclusive bargaining agent and that is through a
request for a Sole and Exclusive Bargaining Agent (SEBA)
Certification.
All you need to study for this purpose would be the
amendment to DO 40-01-15. Under this DO, please take
note that there 3 instances when action may be
taken by the Regional Director whenever there is
a request for SEBA Certification filed before him
Will a request for SEBA Certification be entertained by the
Regional Director? YES
If the regional director will entertain, how will the reg.
Director act on that request for SEBA Certification?
1. Unorganized establishment and there is
only one legitimate labor organization.
- The Regional Director will only examine
whether the requirements that support
the request for SEBA Certification are
complete or not.
-
One of the important requirements to
support the request for SEBA certification
would be the names of the employees in
the bargaining unit expressing their
support for the certification. Provided
that, these employees comprise at least
majority of the number of employees in
the covered bargaining unit.
- This first situation contemplated here is
one where the establishment is not
organized which means there exists no
certified or recognized bargaining agent
or existing CBA and there is only one
legitimate labor organization.
- In that situation the requesting party will
need to attach in that request the proof
that at least majority of the employees in
the bargaining unit express their support
for the issuance of a SEBA Certification
- If the regional director finds out that
this request has the support of at least
majority of the employees in the
bargaining unit, then the regional
director will grant the request and issue
the SEBA Certification
 - Q: What will be the effect of
issuance of a SEBA Certification?
- A: The requesting party will now be
considered as the Sole and
Exclusive Bargaining agent and will
now be entitled to exercise and
enjoy the rights and privileges of an
exclusive bargaining agent of all the
employees in the covered
bargaining unit. IT CAN NOW
EXERCISE THE RIGHTS TO
COLLECTIVE BARGAINING &
NEGOTIATION.
2. Unorganized establishment and there is
more than one legitimate labor
organization.
- What the regional director of the DOLE
should do in that situation is to refer the
request to the election officer for the
conduct of a certification election which
would, in effect, abbreviate the
proceeding because it will bypass the
conduct of a preliminary conference
before the med arbiter. It will dispense
with the issuance of an order granting
the petition for certification election.
Once the regional director refers it to the
election officer, the election officer will
conduct the so-called pre-election
conference wherein the election officer
will determine the date and time of the
election and the mechanics for the
holding of the certification election.
Similar to the procedure in the conduct of
a certification election.
- Refer to the election officer for the
conduct of certification election assuming
that everything is in order.
- In the conduct of certification election,
the med arbiter will still be the person
who isauthorized and empowered to
proclaim the winner in the conducto of
the certification election.
propriety of conducting a certification
election.
- If organized, that means there is a
certified or recognized bargaining agent
or there exists CBA, then the regional
director will not issue a SEBA Certification
but rather endorse the matter to the med
arbiter to determine the propriety of
conducting a certification election. That
means that the med arbiter will conduct
a preliminary conference.
- After the conduct of preliminary
conference, the med arbiter will act on
the request for SEBA Certification by
either granting the holding of a
certification election or denying the
same, assuming there are grounds for
denial of such conduct of election.
- When the order granting the conduct of
certification election becomes final, the
med arbiter will assign the matter to the
regional director for assignment to an
election officer and so on and so forth;
the same procedure as in the case of a
certification election.
Based on my experience, it is seldom that there is a
request for a SEBA Certification. Most likely, the labor
organization that exists in the establishment does not
have the support of at least majority of the employees in
that bargaining unit because if it has no support of at
least majority then the proper recourse there would
really be the conduct of a certification election
because the certification election is intended to choose
from among the union or contending unions the sole and
exclusive bargaining agent. The union that obtains the
required support will be certified as the SEBA.
This DO will also tell us what is meant by abstention
and rerun election. This was not found in the IRR
before. This is the new feature of this request for SEBA
certification.

3. Organized Establishment Before this SEBA recognition, the DOLE recognized

- Regional Director should refer the same “voluntary recognition”. But that was already abandoned.
to the Mediator Arbiter to determine theBefore voluntary recognition, DOLE recognized “direct
certification”. Again that was abandoned because it was
__________________________________________________________________________________________________
Module 9 - 11 Transcript l Labor Relations l Atty. JMM l Taucan, Evengelista, Alonzo (TEA)
very undemocratic. In direct certification, the employers
were given the privilege of directly certifying a labor union
as the sole and exclusive bargaining agent which is
contrary to the democratic nature of a certification
election. Why? Because the conduct of certification
election is supposed to be the exclusive affair of the
employees where the employer is a mere bystander.
Of course, kung merong SEBA certification and there is an
aggrieved party, then the aggrieved will always appeal
that order granting the SEBA certification to the Secretary
of Labor and Employment. The usual reglementary period
there is 10 days. There is no more appeal sa level ng
Secretary of the DOLE so the appropriate remedy there,
if there is grave abuse of discretion for lack or excess of
jurisdiction, it will have to be brought up to the Court of
Appeals under Rule 65 of the Rules of Court. Then from
the CA to the SC under Rule 45 on pure questions of law.
Now that we have the SEBA Certification, the next logical
right that must be exercised by the certified bargaining
agent would be to negotiate and bargain a collective
bargaining agreement. In fact, the law requires that as
soon as the labor organization has been certified as SEBA
whether through certification election or through request
for SEBA certification, then the certified bargaining agent
must immediately exercise the right to collective
bargaining and negotiation.
Why? Because under the Labor Code, the duty to bargain
collectively is reposed upon the certified bargaining agent
similarly reposed to the employer. In other words, the
bargaining agent and the employer have the mutual duty
to bargain collectively with or without CBA. If there is no
CBA, then the certified bargaining agent will have to
initiate the process of collective bargaining and
negotiation.
ALONZO (00-15)
SOURCES of RIGHT TO COLLECTIVE BARGAINING
AND NEGOTIATION
1. Philippine Cons
2. Labor Code of the Philippines
3. IRR
4. International Conventions
__________________________________________________________________________________________________
Module 9 - 11 Transcript l Labor Relations l Atty. JMM l Taucan, Evengelista, Alonzo (TEA)
Once the Sole and Exclusive Bargaining Agent has been
certified, it now enjoys majority representation and vote
of confidence.
What is the extent and nature of the role of an
exclusive bargaining representative?
ART. 267. Exclusive Bargaining Representation
and Workers’ Participation in Policy and Decision
Making
The labor organization designated or selected by the
majority of the employees in an appropriate collective
bargaining unit shall be the exclusive
representative of the employees in such unit for
the purpose of collective bargaining. However, an
individual employee or group of employees shall have
the right at any time to present grievances to their
employer.
Any provision of law to the contrary notwithstanding,
workers shall have the right, subject to such rules and
regulations as the Sec. of Labor and Employment may
promulgate, to participate in policy and decision-
making process of the establishment where they are
employed insofar as said processes will directly affect
the rights, benefits and welfare. For this purpose,
workers and employers may form labor-management
councils: Provided, That the representatives of the
workers in such labor-management coucnils shall be
elected by at least the majority of all employees in said
establishment. (aab Sec. 22, RA No. 6715 March 21,
1989)
What this provision means:
If I am the president of a labor organization that has been
certified, as the SEBA I can now exercise the right to
collective bargaining and negotiation.
To whom will the labor organization bargain with?
With the EMPLOYER in the establishment where the labor
organization has been certified as the Sole and Exclusive
Bargaining Representative.
When you speak of that establishment , it refers to the
employer. It is now between the employer as a party to
the collective bargaining and negotiation and the certified
SEBA/union as the other party to the collective bargaining
and negotiation. Of course the SEBA/union is considered
the agent of the employees in the bargaining unit.
These employees may be members of the union or
non-members of the union as long as they are
within the same bargaining unit.
In one bargaining unit which is composed of the
entire workforce of the establishment, which
shares mutual interest as regards their wages,
compensation, benefits and other terms and
conditions of employment, then that will form part of
one single bargaining unit.
That bargaining unit will be represented by the certified
or recognized bargaining union/agent. In representing
members of the bargaining unit, the representation
extends, for purposes of collective bargaining, to non-
union members.
That is why under the LC, one of the rights of a legitimate
labor organization, is to act as representative of ALL the
employees, for purposes of collective bargaining.
EXAMPLE:
In a rank and file bargaining unit, there could be members
of the union and non-members of the union. But once a
labor organization has been certified as the Sole and
Exclusive Bargaining Agent that union will have to
represent everyone in that bargaining unit whether
members or not as long as these members belong to the
same bargaining unit.
If it’s a rank and file unit, we exclude supervisory
employees because they can’t be merged into the rank &
file employees. We also exclude managerial employees
because they can never form, join or participate in the
formation of the labor organization because they are,
after all, disqualified.
We also exclude confidential employees because under
the doctrine of necessary implication, they are placed in
the same situation as the managerial employees who are
disqualified from belonging to a bargaining unit because
they cannot bargain with their employers or themselves if
they were managerial employees.
PAR. 1 (cont.), ART. 267
“However, an individual employee or group of employees
shall have the right at any time to present grievances to
their employer.”
It does not mean that if you are a member of the rank
__________________________________________________________________________________________________
Module 9 - 11 Transcript l Labor Relations l Atty. JMM l Taucan, Evengelista, Alonzo (TEA)
and file bargaining unit, it does not mean that, just
because there is a certified bargaining union in that
bargaining unit, you cannot, in your individual
capacity, bring a grievance directly to
management.
HOWEVER, for the purpose of collective
bargaining, you cannot in your individual capacity,
negotiate and bargain with the employer. Because
the bargaining agent is the SEBA.
Insofar as matters involving implementation,
enforcement of the CBA, the law gives it upon the SEBA
to act on behalf of all the employees in that bargaining
unit. A single employee, in his individual capacity, cannot
involve themself in matters involving implementation or
enforcement of the CBA. He/She is deemed to have given
that up to the SEBA.
However for grievance (any complaint), he is allowed by
law to bring it directly to his or her employer. It does not
prevent him or her from bringing up this grievance directly
to his/her employer.
EXAMPLE: Enforcement of the company’s policy on leave
of absences
Application for leave of an individual employee who’s a
member of the bargaining unit was denied. He now has a
grievance and he wants to bring it up to his employer, he
can do that.
What he cannot bring up to the employer are matters
involving collective bargaining and negotiation.
Read SC Case: Interpreting this particular
provision
Q: Can an individual employee bring up a
grievance arising from the interpretation or
implementation of the CBA directly to
management?
A: NO because grievance arising from interpretation or
implementation of the CBA or company personal policy
will have to be brought up by the SEBA or the Sole and
Exclusive Bargaining Union because the parties to the
grievance machinery are the employer and the certified
bargaining union or the SEBA.
Evangelista (15-30)
The individual employee cannot bring such type of
grievance to the grievance machinery and then to
voluntary arbitration. Hindi yan pwede individual. It must
always be the sole and exclusive bargaining union who is
given the power, authority and representation on behalf
of the employees in that appropriate bargaining unit.
2nd paragraph: Any provision of law to the contrary
notwithstanding workers shall have the right…
representation from management and the workers in that
particular establishment and insofar as the workers are
concerned, the law requires that the representations
should be directly elected by at least majority of all the
employees.

The 1st sentence of 2nd paragraph emphasizes another Assignment:

equally important right of the workers which is the right - Differentiate a labor union and labor-
of the workers to participate in policy and decision making management council
process insofar as these processes will directly affect their - Research on whether a labor-management
rights, benefits and welfare. council may co-exist with the labor union
- Research on what are the main features or
This provision is now settled. There was once an SC case salient features of a labor-management
involving PAL. PAL is a unionized establishment and at council that distinguishes it from a labor
one time, PAL came up and formulated its code of union
discipline which it wanted to enforce but the company did - Research whether a labor management
not bother consulting the organized union. When it was council is same as a work’s council
challenged by the union, SC declared such Code of
Discipline as unenforceable because it violated the right DUTY TO BARGAIN COLLECTIVELY
of workers to participate in policy and decision making The LC provides for 3 important provisions on the duty to
processes. A Code of Discipline is a process which directly bargain collectively.
affects the rights of the workers particularly the right to
security of tenure. It might result to termination and loss In other words, if X is the sole bargaining agent and his
of employment. SC ruled that the workers have the right certification has become final and official then he has to
to participate in policy and decision making processes. SC know what are his duties and the scope of his duties to
required PAL to consult the organized union regarding the bargain collectively.
formulation and implementation of the Code of Discipline
as a prerequisite to its enforcement. Since there is no CBA yet, Article 262 and Article 263 are
applicable.
The right to participate in policy and decision making
processes does not give the certified bargaining union or
ART 262. In the absence of an agreement or
LLO the right to manage and operate the establishment.
other voluntary arrangement providing for a
That is not the coverage of the right. They cannot demand
more expeditious manner of collective
for a seat in the board of directors nor demand to manage
bargaining , it shall be the duty of employer
and operate the business operation.
and the representatives of the employees to
bargain collectively in accordance with the
The right only requires the employer and organized
provisions of LC.
establishments to consult the workers in processes which
directly affects their rights, benefits and welfare.
The duty to bargain collectively when there is no CBA
It also states that for this purpose, workers and employers (Article 262) and when there is a CBA (Article 264) comes
may form labor-management councils: provided, that the into play only in the absence of an agreement or voluntary
representatives of the workers in such labor-management arrangement providing for a more expeditious manner of
councils shall be elected by at least the majority of all collective bargaining.
employees in said establishment.
If there is one, then act in accordance with such
The right to participate in policy and decision-making agreement or voluntary arrangement. If there is none,
processes includes the right to form and organize labor- then it is the law that confers upon us the duty to bargain
management council which is comprised of equal collectively.
__________________________________________________________________________________________________
Module 9 - 11 Transcript l Labor Relations l Atty. JMM l Taucan, Evengelista, Alonzo (TEA)

Q. If there is no CBA, what is the scope of the duty
to bargain collectively?
This duty to bargain collectively is a mutual duty, both of
the employer and the sole and exclusive bargaining
representative.
ART 263. The duty to bargain collectively
means the performance of a mutual obligation
to meet and convene promptly and
expeditiously in good faith for the purpose of
negotiating an agreement with respect to
wages, hours of work and all other terms and
conditions of employment including proposals
for adjusting any grievances or questions
arising under such agreement and executing a
contract incorporating such agreements if
requested by either party but such duty does
not compel any party to give to a proposal or
to make any concessions.
Q. What is the duty?
The employer and the sole and exclusive bargaining agent
have to meet and convene promptly and expeditiously in
good faith.
Q. What is the purpose?
The purpose of such meeting would be to negotiate an
agreement (CBA)
Q. Concerning to what?
Concerning to wages, hours of hours and all other terms
and conditions of employment. This refers to the
economic provisions of the agreement
However, it also includes proposals for adjusting any
grievances or questions arising under such agreement.
The law requires that the parties must also negotiate a
grievance mechanism on how to resolve grievances and
questions arising from that agreement. ie. matters of
interpretation, implementation
The duty also includes the duty to executing a contract
incorporating such agreements if requested by either
party.
Limitation
__________________________________________________________________________________________________
Module 9 - 11 Transcript l Labor Relations l Atty. JMM l Taucan, Evengelista, Alonzo (TEA)
It does not compel any party to give to a proposal or to
make any concessions.
There must be no compulsion to one party to agree. If
they cannot agree, then there is no agreement in the first
place. Hence, it is called “collective” bargaining.
While to conclude a CBA is the necessary consequence of
bargaining and negotiation, the law does not compel the
parties to conclude an agreement.
Reason: In the exercise of collective bargaining and
negotiation, neither of the parties is required to agree or
make any concession.
Thus, it is possible that there is no agreement at all. But
at least, there is a duty to bargain collectively.
(30 min - end)
JMM: Anyway, when you speak of collective bargaining
what is really the concept?
One principle is that it refers to negotiations looking
toward a collective agreement. It does not end with the
execution of the agreement but is considered a
continuous process. So when you’re able to negotiate and
conclude a CBA, execute one, incorporating your
agreement, collective bargaining does not stop there. You
Still have the duty and the obligation to carry one the
agreement you have made to ensure that it is properly
observed by the parties who concluded that agreement.
So in that sense, collective bargaining is a continuous
process. It does not end with the signing and execution
of a CBA.
There’s also another equally important principle when you
speak of collective bargaining: It is a means of ensuring
harmonious labor management relations.
What did the SC say with the purpose of a CBA?
In one case involving PH Airlines, the SC said that the
purpose of CBA is to stabilize labor management reactions
in order to create a climate of sound and stable industrial
peace.
The duty to bargain arises from the time the official
certification that a particular union is the braining agent
or representative of the employees on the appropriate
bargaining unit.
On the duty to bargain, the SC once said that while the
purpose of the CBA is reaching an agreement, it does not
compel any party to accept a proposal or make any
concession. In fact failure to reach an agreement after
negotiations continued for a reasonable period does not
mean lack of good faith.
Now, if there is a CBA which means that the establishment
has a certified bargaining union and they have
successfully negotiated and concluded a CBA, what does
the duty to bargain collectively consist of?
You can find the answer in Art. 264
When there is a collective bargaining agreement,
the duty to bargain collectively shall also mean
that neither party shall terminate nor modify such
agreement during its lifetime. However, either
party can serve a written notice to terminate or
modify the agreement at least 60 days prior to
expiration date. It shall be the duty of both parties
to keep the status quo and to continue in full force
and effect the terms and conditions of the existing
agreement during the 60-day period and/or until
a new agreement is reached by the parties.
JMM: “neither party shall terminate nor modify such
agreement during its lifetime” means that if they have
agreed that CBA, in so far as the economic provisions are
concerned, is valid for 3 years for example, then they
have to respect and honor that economic agreement
during its lifetime. One party cannot just simply disregard,
modify, change or set aside the agreement during its
lifetime.
It says further “However, either party can serve a written
notice to terminate or modify the agreement at least 60
days prior to expiration date”. This 60 days prior to the
expiration date is the only period where the law allows
either or both of the parties to terminate or modify the
agreement.
Ex: So kung ang lifetime ng agreement is 3 years, you
cannot terminate or modify except within 60 days prior to JMM: Since it is the certified bargaining union that has
the expiration date. the duty to bargain collectively, the proposal of the CBA
__________________________________________________________________________________________________
Module 9 - 11 Transcript l Labor Relations l Atty. JMM l Taucan, Evengelista, Alonzo (TEA)
Hold-over Provision
JMM: “It shall be the duty of both parties to keep the
status quo and to continue in full force and effect the
terms and conditions of the existing agreement during the
60-day period and/or until a new agreement is reached
by the parties.” This is called the hold-over provision
where the parties have to maintain the status quo until
they reach a new agreement.
Sympre pag may propose to amend the existing
agreement which can be done within 60 days prior to its
expiration, it is not assured that the parties will conclude
an agreement before the expiration date. The parties may
even go beyond the expiration date, in such case, the
parties must maintain the status quo. You have to keep
the agreement as if it has never been disturbed at all. You
continue to enforce and respect it until you reach a new
agreement.
TN: You have to make a distinction between there has
yet no CBA so this is the duty to bargain collectively
means; If there is a CBA, this is the duty to bargain
collectively means.
JMM: Let’s now start and Initiate Collective Bargaining
and Negotiation. Being the sole and exclusive bargaining
agent and enjoying exclusive bargaining representation of
matters involving collective bargaining and negotiations,
how does one initiate bargaining and negotiation?
Art. 261 says:
The following procedure shall be observed in
collective bargaining:
a. When a party desires to negotiate an
agreement it shall serve a written notice
upon the other party with a statement of its
proposals. The other party shall make a
reply thereto not later than 10 calendar
days from receipt of such notice;
is usually initiated or comes from the bargaining union.
They will have to submit that to the employer who is the
other party.
So when the certified bargaining union submits its
proposal for a CBA to the employer and the latter, under
the law, may replay within 10 calendars from the receipt
of the union proposal.
b. should differences arise on the basis of
such notice and reply either party may
request for a conference which shall begin
not later than 10 calendar days from the
date of request
JMM: So kung meron silang difference in the exchanges
of the proposal, reply-proposal and so and so forth, wither
party may request a conference and try to discuss and
explore the possibility of settling these differences. They
should not simply go elsewhere and go on strike for
example or t. The employer should not resort to lock out
just because there are differences from the notice and
reply between the bargain gunion and the employer.
c. if the dispute is not settled the board shall
intervene upon request of either or both
parties or at its own initiative and
immediately call the parties to a
conciliation meeting. the board shall have
the power to issue subpoenas requiring the
attendance of the parties to such meetings.
it shall be the duty of the parties to
participate fully and promptly in the
conciliation meetings the board may call.
JMM: Check the definition of the word “Board”
Art. 219 (c). Bored means the national conciliation and
mediation board exam which is under Executive Order No.
126.
In region 7 we have an MCNB here. And it says here kung
walang settlement in the differences in the course of
collective bargaining and negotiation then the NCMB has
the power and authority to intervene, particularly the
regional office in that region where the establishment and
the union exist.
__________________________________________________________________________________________________
Module 9 - 11 Transcript l Labor Relations l Atty. JMM l Taucan, Evengelista, Alonzo (TEA)
d. during the conciliation proceedings in the
Board, the parties are prohibited from
doing any act which may disrupt or impede
the early settlement of the disputes
JMM: As I;ve said, while the Board is trying to mediate
and conciliate the parties, the law mandates that the
parties are prohibited from doing any act that may disrupt
or impede the settlement. That prohibition, in my opinion,
prevents the parties from doing something that will affect
the security of tenure of the employees in that
appropriate bargain unit. The union is also prohibited
from staging a strike for example.
e. the board shall exert all efforts to settle
disputes amicably and encourage the
parties to submit their case to a voluntary
arbitrator.
JMM: Kung hindi ma settle ng Board then it will
encourage the parties “Why don't you settle the
differences to a voluntary arbitration?” It's
encouragement because you cannot compel the parties
to submit to a voluntary arbitrator if one or both of the
parties do not agree. Voluntary arbitration requires
consent kaya nga voluntary.
Very simple lang yung procedure in initiating a collective
bargaining and negotiation.
MOD 10 Part 7
2 Types of Collective bargaining
1. Single enterprise Bargaining (most-common)
2. Multi-employer bargaining
Unfortunately, while the IRR recognize these 2 types of
Collective Bargaining, the IRR failed to define the
meaning and concept of these 2 types.
Please take note that between the Single enterprise
bargaining and the Multi-employer bargaining it is the
former most-common.
Single Enterprise Bargaining
Decentralized bargaining. Only one or single employer is
involved. It usually takes place at the enterprise level
within the area where the the legitimate l;abor
organization operates.
Multi-employer bargaining
Industry-wide bargaining. Involves a unit structure where
a number of employers join forces for purposes of
collective bargaining.
It takes place within many geographical subdivisions.
May cover a metropolitan area, a region or even the whole
country.
STEP BY STEP PROCEDURE
Refer to DO 40-03, as amended
Focus on Single Enterprise Bargaining
Last time we made mention that in the absence of a CBA,
the parties (ER and Union) have the mutual duty and
obligation to bargain collectively.
One of the forms of unfair legal practice is when
there is refusal on the part of the ER or the labor
organization to bargain collectively.
The parties are left with no choice, that once the
legitimate labor organization has been certified as the
SEBA, it has to discharge the duty to bargain collectively.
Similarly the employer should not wait, it also has the
equal duty to bargain collectively in order to negotiate an
agreement that will embody the wages, hours of work and
other terms and conditions of employment involving the
workers in the bargaining unit including the mechanism
on the resolution of grievances that may arise in the
collective bargaining and negotiation and implementation
thereof.
I also made mention that the duty bargain collectively
differs in substance when there is already a CBA.
For now, we will focus on the duty to bargain collectively
in the absence of a CBA.
LAst meeting I also made mention of the step-by-step
procedure in the conduct of collective bargaining and
negotiation. The LC mandates the labor organization or
the Certified bargaining union to initiate bargaining and
negotiation by submitting to the employer its proposal for
the CBA. For the employer, it has the duty to reply within
10 calendar days from receipt of the union’s proposal.
Thereafter they will have to sit down, meet and discuss
The beauty of that is that the workers do not have to wait,
the negotiation of a CBA. a statutory or mandated wage increase coming from the
Regional Tripartite Wages and Productivity Board because
__________________________________________________________________________________________________
Module 9 - 11 Transcript l Labor Relations l Atty. JMM l Taucan, Evengelista, Alonzo (TEA)
When you are now sitting down to negotiate a CBA, the 2
basic features of a CBA are:
1. Economic Provisions.
2. Non-economic Provisions/Political Provisions
It is mandatory for the parties to negotiate and bargain
involving the employees wages, hours of work and other
terms and conditions of employment. The parties will be
remiss in the their duty and obligation to bargain
collectively if they don’t discuss these very important
items, particularly the economic provisions.
Examples of economic provisions:
WAGE INCREASES
Normally, when you discuss and negotiate a CBA involving
wages, you usually propose to the ER the grant of
increase in the workers’ daily wage for the first year,
another increase for the 2nd year and another for the 3rd
year.
Why three years?
As we shall discuss later on when we speak of the term
of the CBA, the law prescribed that insofar as the other
provisions are concerned, these other provisions shall be
for a term that should be mutually agreed upon by the
parties. Subject to the condition that these other
provisions whether economic or non-economic shall be
re-negotiated not later than three years from the date of
execution of the CBA.
That’s the reason why in actual practice, when you speak
of a proposal for wage increases, the union usually
proposes a provision that will entail an increase in the
daily wages covered by the CBA for the 1st, 2nd and 3rd
year because on the 3rd year it has to be renegotiated for
another set of years and so on and so forth.
As you are quite aware, in Region 7, we have a prescribed
minimum wage. These prescribed minimum wage may be
the subject of a collective bargaining negotiation such
that the union may propose that for the first year of
implementation of the CBa, out of these prescribed
minimum wage, there might be an increase of, for
example, 15 pesos for the first year., 10php for the 2nd
year, on the 3rd year - 5php.
of the EEs have a CBA with the establishment then they
are at least guaranteed and assured that for the 1st year
there will be an adjustment in the 1st,2nd, and 3rd years.
So now they will be dependent upon the contract with the
establishment and the ER. So that’s better, compared to
without having a CBA.
PROVISION ON LEAVE BENEFITS
In the Labor Code, you only speak of a service incentive
leave. To earn that, the worker must have rendered at
least one year of service. The service incentive leave is
only for a maximum of 5 days. If you have a CBA, the
union may propose to the management a provision on
leave benefits that may be better than the usual service
incentive leave.
In my experience, usually a union proposes the
vacation leave of 10 days with pay and also sick leave
with pay.
Evangelista (13-26 mins)
…which are both economic provisions.
A provision on retirement pay. LC provides for a provision
on retirement pay but that is the minimum so it can also
be improved if there is a CBA.
Example: Union may propose for a retirement pay more
than the usual 22.5 days for every year of service or
retirement pay equivalent of 1 month pay or 30 days for
every year of service.
That is a salient feature of a CBA.
TN: In the exchanges between the certified bargaining
unit and management, there is no obligation on the part
of either parties to accept each other’s proposal or
counter-proposal.
The parties may end up in a bargaining deadlock because
the parties could not agree on certain economic
proposals. That is why the LC provides for a topic on
bargaining deadlock which is a ground to stage a strike
by the workers who are members of the certified
bargaining union.
__________________________________________________________________________________________________
Module 9 - 11 Transcript l Labor Relations l Atty. JMM l Taucan, Evengelista, Alonzo (TEA)
Economic provision are anything that improves the
wages, benefits of workers can be classified as economic
provisions.
TN: It is important to distinguish economic provisions
from non-economic provisions because under LC, mere
violation of a CBA is not unfair labor practice. However,
malicious and flagrant refusal to comply with the
economic provisions of the CBA is considered under the
LC as unfair labor practice.
Unfair labor practice carries both criminal and civil liability
on the part of the persons responsible thereto. That is
how serious unfair labor practice is because it violates the
rights of the workers to self-organization.
Non-economic/Political Provisions
Grievance Machinery
LC requires the incorporation of a grievance machinery in
a CBA. The grievance machinery is important to keep and
maintain industrial peace and harmony in the
establishment. Without such, there will be chaos and
disharmony between the management and certified
bargaining union, including the employees who are part
thereof.
The grievance machinery contemplated under the LC is
one which will play a role whenever there is a complaint
involving the interpretation or enforcement of a CBA or
interpretation or enforcement of company policies.
Matters involving these 2 areas are classified as
grievances and thus, subject to the grievance machinery.
If this is not resolved at the level of the grievance
machinery, it becomes unresolved. LC requires that the
same matter will have to be referred to voluntary
arbitration. In fact, LC provides for the creation of the
voluntary arbitration or panel of voluntary arbitrators
which have original and exclusive jurisdiction over
unresolved grievances arising from interpretation and
enforcement of a CBA or company personal policies.
We will discuss this more in detail when we go to the topic
on Revised Guidelines in the Conduct of Voluntary
Arbitration Proceedings. This rule of procedure in
organized establishment will apply more where there is a
grievance on the interpretation or enforcement of a CBA
or company personal policies.
If the parties cannot agree and there is absence of
agreement on grievance machinery or procedure, refer to
the IRR because in the absence of a stipulation in the
CBA, the IRR on the grievance mechanism and machinery
will come into play.
That is something that should not weary the parties, if
they cannot agree to a particular mechanism in resolving
grievances then the IRR will apply and supplement this
absence.
Union Security Clause
A union security clause is a generic term. It will
encompass any agreement which requires the duty upon
the employee to acquire or retain membership in the labor
organization.
Assignment:
- check textbook and make an outline on the
different union and security clauses
Examples: Closed shop agreement, union shop
agreement, maintenance of membership shop, agency
shop agreement.
In my experience, when we negotiate and bargain a CBA,
one of the items discussed by the parties would be: what
kind of union security will be written and codified in the
CBA?
Most of the CBAs usually have a closed shop agreement
wherein the employer will only have to hire members of
the certified bargaining union who have to keep and
maintain their membership as a condition for their
continued employment.
In fact, a closed agreement has been described as the
most prized achievement of unionism because it adds
membership to the organization and the more the
members are, it will wield unity and solidarity. That is the
basic feature of a closed shop agreement.
Special Laws
In the course of collective bargaining and negotiation,
there are also special laws ie. Comprehensive Dangerous
Drug Act, which require that a policy against drug use or
abuse must be incorporated in the CBA. That is one
special law that contains a labor provision.
__________________________________________________________________________________________________
Module 9 - 11 Transcript l Labor Relations l Atty. JMM l Taucan, Evengelista, Alonzo (TEA)
The parties are at liberty to incorporate whatever they
want in the CBA. For one, a CBA is a contract and a
contract requires consent on the part of the parties to be
valid and binding so neither of the parties may be
compelled to incorporate a provision that the other party
disagrees. That is purely the essence of a CBA.
But a CBA is a special contract because it is one that is
impressed with public interest and is basically protected
by the constitution and provided enough safeguards by
the LC.
In fact, the duty to bargain collectively requires the
parties to keep and maintain status quo of the existing
CBA until a new agreement is reached by the parties. In
other words, the provisions of the CBA must be respected
and honored by the parties.
Term of the CBA
Q. How long is the CBA?
The LC provides that insofar as the representation aspect
is concerned, the CBA is valid for 5 years.
Representation aspect refers to the majority status of the
incumbent bargaining agent/union.
If X is the certified bargaining union and he negotiates
and bargain a CBA with the management and eventually,
was able to sign and conclude a CBA, that CBA is valid for
5 years insofar as X’s majority representation is
concerned.
It means that for the next 5 years, X will be the certified
bargaining union who will administer the CBA and no one
should interfere with management and administration of
the CBA.
Administration means that X will ensure that the terms
and conditions of the CBA will be observed, respected and
honored by the management and vice versa.
Insofar as other provisions, economic and non-economic,
the term of the CBA shall be for a term that will be
mutually agreed upon by the parties.
Example: A union security clause (political provision),
the parties may agree that it is valid for only 2 years…

MOD Part 7 (26-end)
JMM: … or it’s valid for 4 or 5 years and so on and so
forth. Now, they could also agree that for the provision
on long assistance, on leave benefits may be valid for 3
or 5 years as the case may be. It depends upon the
agreement of the parties. IOW, what is fixed by law
insofar as the representation aspect is concerned. That is
also intended to maintain industrial peace and stability in
the establishment because at least for the next 5 years,
there will be no trouble, no ther union trying to challenge,
replace or oust the incumbent bargaining agent. If there’s
anyone who wants to replace or challenge the majority
status of the incumbent bargaining agent, the law
requires that you have to wait until the “freedom period”
which is 60 days immediately prior to the expiration of the
CBA and that will have to take place in the 5th year; where
a petition for a certification election in a organized
establishment may be entertained and allowed. (We have
discussed that)
By the way, I failed to mention that the union security
clause, which is a political and non-economic provision
does not have any binding force and effect during the so-
called freedom period where the union is allowed to
decide whether to challenge the incumbent bargaining
unit.
TN: When the parties are able to come up with an
agreement, such is called a CBA. Since the parties are
capable of entering into one, the CBA shall constitute as
the law between the parties.
However, for the CBA to be effective the rules required
that the CBA must be ratified of the employees in the
appropriate bargaining unit whether members of the
union or not.
For purposes of ratification, at least the majority of all the
employees of the appropriate bargaining unit must ratify
for it to be effective and enforceable.
TN: The parties cannot enforce the CBA unless there is
proof of ratification by at least majority of the employees happy to sign and conclude the CBA however, when it’s
of that appropriate bargaining unit whether members of
the union or not.
__________________________________________________________________________________________________
Module 9 - 11 Transcript l Labor Relations l Atty. JMM l Taucan, Evengelista, Alonzo (TEA)
NOT THE TOTAL MEMBERSHIP BUT ALL THE EMPLOYEES
because all the employees in the bargaining unit will
benefit from the CBA, members or not.
CHECK OFF PROVISION
I also failed to mention that it’s also very common to
incorporate in the CBA the so-called check-off
provision particularly for union dues and for other
mandatory activities without need of individual written
authorization.
This check-off provision the ff:
1. the union collecting dues from the members;
2. the union collecting agency fees from employees
in the bargaining unit who are not members of
the certified bargaining union. Especially when
the union security involved is agency shop where
employees need not be members of the union but
if they benefit from the CBA then they have to
contribute in the form of agency fees
REGISTRATION
Where do you register this CBA?
JMM: The parties may register the CBA after it has been
ratified with the regional office of the DOLE which has
issued the certificate of registration of the certificate of
creation of a local or chapter.
There is a minimal registration fee.
One important requirement is the publication of the CBA
before it is ratified by the employees in that bargaining
unit.
Story time: I have one experience where we spent
almost 3 or 4 months in Iloilo to negotiate and bargain for
a CBa involving a private education institution. We’re so
time to submit for ratification,l I was surprised that it was
not ratified by the employees. IOW, they did not want the
CBA. The employees chose to have a bargaining
representative but when it was presented to them, they
opted not to ratify it. When the union came back to me
and told me that they wanted to enforce the BA, I had to
tell them that “Sorry, I cannot do that because there is no
ratification of the CBA. We cannot implement the check-
off provision, provide the wage increases, leave benefits,
etc.” That’s how the story ended. It was good for the
management because at least they are able to save
money. Had the CBA been ratified or implemented, it
would have caused money to the school. But of course,
we have to look at it from the bright side, because the
CBA is really intended for working men who are members
of that bargaining unit.
What’s the effect of the failure to register a CBA?
JMM: The only effect is that the contract bar rule will
not apply.
The contract bar rule prevents any legitimate labor
organization from filing a petition for certification election
except during the freedom period.
So if there is no contract bar rule, then that would enable
any labor organizations to challenge the representation
status of the incumbent bargaining agent at any time. Not
only within the freedom period but at any time! That’s the
disadvantage of the failure to register.
Story time: In my experience, especially the union really
mind it very much to register because the know that the
contract bar rule is really intended to keep their status as
the majority union and prevent any organizations out
there from challenging their leadership; from
theoirtheining otust or replace them for the next 5 years
in the administration of CBA.
Walang hard and fast rule. You just sit down informally.
You just set the date and time of meetings and for the
negotiations. What’s important is that you put in the CBA
matters that have been agreed upon and NEVER forget
matters involving wages, hours of work and other terms
and conditions of employment. These are MANDATORY
ITEMS that must be incorporated in the CBA.
ADMINISTRATION AND IMPLEMENTATION OF
THE CBA
JMM: The employer should honor and respect the CBA
that has been agreed upon and conclude with the certified
__________________________________________________________________________________________________
Module 9 - 11 Transcript l Labor Relations l Atty. JMM l Taucan, Evengelista, Alonzo (TEA)
bargaining union. In the same way that the certified
bargaining union must respect the CBA it has concluded
with the management. They will now have both the duty
to bargain collectively - not for another CBA - but to
ensure that the CBA is properly administered in
accordance with the terms of the CBA.
That means that the employer has to make good of its
commitment to the CBA. Same with the union.
Ex: There’s a no strike, no lock-out clause embodied in
the CBA, the parties are bound to honor that for the terms
that have been agreed upon by them.
Analogy: It’s just like entering into a lease contract. The
landlord has the duty to keep and maintain you in your
peaceful use and enjoyment of the property. The same
way that you as a tenant have the duty to pay religiously
the rentals to the landlord and to keep and maintain the
rented property in good condition. That’s mutual
obligation.
When you talk of CBA, IT DOES NOT END UPON THE
CONCLUSION OF THE CBA.
IT’S A CONTINUOUS PROCESS which involves the
administration and enforcement of the CBA.
RENEGOTIATED CBA
TN: The law says other provisions shall be renegotiated
not later than 3 years.
JMM: That means that before the end of the 3rd year -
particularly 60 days before the end of the 3rd year - the
partes will now have to sit down again and renegotiate
the CBA. We call that the renegotiated CBA, insofar as
these other provisions are concerned, which include the
economic provisions as well.
It’s not exactly 3 years because the law says “shall be
renegotiated not later than 3 years.” So before the end of
the 3rd year.
Ex: So when they can negotiate the economic provisions
and fix the term for 2 or 3 years. It all depends upon the
agreement of the parties.
TN: When it comes to renegotiation of the CBA, please
take note of the provisions of the Labor Code on the
effectiveness of that renegotiated CBA.
JMM: Of course, it depends on how soon the parties
could conclude a renegotiated CBA. if they do that within
or beyond the 6 month period from the expiration of the
CBA.
The effect will depend whether the parties are able to
conclude. That renegotiated CBA will either be
prospective or will be immediately effective after the
expiration of the CBA.
Next topic: Revised guidelines in the conduct of
voluntary arbitration proceedings
JMM: In the course of the administration of the CBA,
there may be grievances or complaints arising from the
interpretation or implementation of the CBA .
MOD 10, Part 8
Today, we will try to put ourselves in a situation where
while in the exercise of the right to self-organization, that
is when the workers are in the state of recruiting
members to the union, enlisting members to the union;
when the workers are in the stage of organizing and
registering their labor organization unfair labor
practices may be committed by the ER against the
workers.
The most common form will be interference of the
workers right to self-organization . If there is a
commission of unfair labor practice, we know that that is
one of the grounds for the workers to engage in peaceful
concerted activities including the right to strike.
On the other hand, while the certified labor union is on (a) It is the policy of the State to encourage
the course of negotiating and bargaining with the
employer for the CBA, the parties were caught in an
impasse or a deadlock. We know for a fact that
another ground for the workers to exercise the
right to engage in peaceful and lawful concerted
activities would be when there exists a bargaining
deadlock.
__________________________________________________________________________________________________
Module 9 - 11 Transcript l Labor Relations l Atty. JMM l Taucan, Evengelista, Alonzo (TEA)
In any of these 2 instances, whether unfair labor practice
or bargaining deadlock, the labor code authorizes the
workers through their legitimate labor organization or
certified bargaining union as the case may be to engage
in peaceful and lawful concerted activities which include
the right to strike.
On the other hand, where there exists unfair labor
practice committed by the labor organization upon
the employer; where there exists a bargaining
deadlock upon negotiating a CBA by the employer,
the employer on the other hand is given by law to
declare a lockout or temporarily a refusal to
provide the workers with their work as a result of
an industrial or labor dispute.
IOTW, the workers have the right to declare and stage a
strike in accordance. On the other hand, ER has the right
to declare and implement a lockout as against the workers
when there is unfair labor practice or when there is a
deadlock.
Right of workers to engage in lawful or peaceful
concerted activities.
ART. 278 of LC - Strikes, picketing and lockouts
Let me emphasize that aside from strikes and picketing,
there is another form of concerted activity that is
recognize and that is what we call as a “boycott” or a
concerted refusal to patronize the ERs products and/or
services.
Picketing is considered a peaceful concerted activity.
Strike, as long as it is legally done in accordance with the
requirements prescribed by law.
The most effective is the right to strike which is
considered as the last weapon of the workers in order to
secure their demands for a collective bargaining as
against the ER or in order to protect them from unfair
labor practices.
free trade unionism and free collective
bargaining.
(i) Earlier on we said that the policy of the
State is to prevent unionism. That the
state has guaranteed the workers the
right to self-organization, the right to
 engage in peaceful concerted activities
and finally the right to negotiate a CBA.
(ii) Consistent with that constitutional policy
of the State, the LC also reiterates the
policy of the state to encourage free
trade unionism and free collective
bargaining.
(iii) Collective bargaining has been
considered a mode of settling labor
disputes. It is also protected by
international conventions which forms
part of the legal system of the PH.
(b) The workers shall have the right to engage
in concerted activities for purposes of
collective bargaining or for their mutual
benefit and protection. The right of
legitimate labor organizations to strike and
picket and of employers to lockout,
consistent with the national interest, shall
continue to be recognized and respected.
However, no labor union may strike and no
employer may declare a lockout on grounds
involving inter-union and intra-union
disputes.
(i) Iya ra gi read and provision ug utro as
explanation.
(ii) In particular, when you speak of strike, it may be filed by any LLO because there may be unfair
produces a disquieting effect; not only on labor practices that may be committed by the employer
the relations of labor and management
but as well as disturbance to the general
peace of society. If there is a company
involved in the manufacture of essential
goods and the workers of this company
are organized into a labor union and
decided to stage a strike because of, for
example, the commission of unfair labor
practices by the employer, then the
effect of that strike will not only affect deadlock or unfair labor practice, the employer is given
the workers in that particular company,
not only the employer, it will also affect
the public at large or the society in
general because the public usually
patronizes the goods and services of
these companies. If these companies are
on strike and there is no production
because of the temporary stoppage of
work then obviously the general public
will be affected.
__________________________________________________________________________________________________
Module 9 - 11 Transcript l Labor Relations l Atty. JMM l Taucan, Evengelista, Alonzo (TEA)
(iii) Therefore the right to strike is not an
absolute right. It is subject to the
limitations provided by law.
(c) In case of bargaining deadlock, the duly certified
or recognized bargaining agent may file a notice
of strike or the employer may file a lockout with
the National conciliation and Mediation Board at
least 30 days before the intended date of strike.
In cases of unfair labor practice, the period of
notice shall be 15 days and in the absence of a
duly certified or recognized bargaining agent, the
notice of strike may be filed by any legitimate
labor organization in behalf of its members.
(i) This provision will summarize for us who
is authorized by law to file a notice of
strike.
Evangelista (12-24 mins)
…unfair labor practice case, then the notice of strike may
be filed by a LLO in the absence of a certified or duly
recognized collective bargaining agent.
If there is no certified or recognized bargaining agent, it
on the workers and in that particular stage, there is no
certified bargaining union to speak of. As such, the law
authorizes the LLO to file the notice of strike.
However, in case of bargaining deadlock, it is only the
duly certified or recognized bargaining agent which is
authorized by law to file a notice of strike.
In the case of the employer, whether it is a bargaining
the right to file a notice of lockout, as the case may be.
Letter C will spell out for you what is the so-called
“Cooling off period.” It is the period that would give the
national conservation mediation board the opportunity to
explore the possibility of settling the dispute between the
parties.
It is fixed by law—30 days if the ground is bargaining
deadlock and 15 days if the ground is unfair labor
practice. The 15-day cooling off period in case of unfair
labor practice may be dispensed with if the ULP consists
of union busting.
There is union busting if it involves the dismissal of an
officer of a union who has been duly elected in
accordance with the union’s constitution and by-laws and
where the survival or existence of the union is threatened.
In this case, the law may dispensed with the 15-day
cooling off period.
Reason: If there is union busting, then nobody would
be left to manage and operate the union. It is as if you
are killing the union itself. There is nothing to cool-off
between the parties.
It will now authorize the union to submit and conduct its
strike (??) at least 7 days before the intended date of
strike and to stage a strike without observance of the 15-
day cooling off period.
Union busting can be found in Article 278(c), last
paragraph.
Letter D simply says that the notice must be in accordance
with such IRR as the minister of labor of employment may
promulgate.
Right now we no longer have a Ministry of Labor of
Employment, it is now DOLE. What is being followed right
now are the rules and regulations promulgated by the
National Conciliation Mediation Board (NCMB) which is an
agency attached to DOLE.
Letter E says that during the cooling off period, it shall be
the duty of the government to exert all efforts at
conciliation and mediation to effect a voluntary
settlement.
Under our present law, that duty is proposed upon the
NCMB. The NCMB is mandated to conduct a marathon
conciliation and mediation conferences for the purpose of
exploring possibility of settling the dispute between the
parties. That duty is now reposed upon the NCMB.
It says here that should the dispute remain unsettled until
the lapse of the required number of days from the
mandatory filing of the notice, the labor union may strike
or the employer may declare a lockout.
__________________________________________________________________________________________________
Module 9 - 11 Transcript l Labor Relations l Atty. JMM l Taucan, Evengelista, Alonzo (TEA)
This provision simply means that if all efforts towards the
settlement of the dispute has been fully exhausted by the
NCMB, then this will now authorize the union or the
employer as the case may be to declare a strike or
lockout, subject to the other requirements under the LC
ie. conduct of a strike vote, submission of a strike vote,
lockout vote to the NCMB at least 7 days before the
intended strike or lockout, as the case may be.
F. A decision to conduct a strike must be approved by
majority of a total number of membership…
It will tell us how a strike vote is conducted. It will have
to be conducted by the union members and to have a
valid strike vote, the law requires that it must be approved
by at least majority of the total membership in the
bargaining unit concerned. The strike vote must be
conducted by secret ballot in meeting or referenda called
for the purpose.
Those are the strict requirements on the conduct of strike
vote under the LC. Read it in accordance with the IRR.
IRR will tell us that in the conduct of a strike vote, the
NCMB must be at least notified at least 24 hours before
the conduct of the strike or lockout so that the NCMB can
at least supervise and ensure the integrity of the process.
It is to ensure that holding of the strike/lockout vote is
not fabricated.
“A decision to declare a lockout must be approved by a
majority of the board of directors of the corporation or
partners obtained by secret ballot called for the purpose.”
If the employer will declare a lockout, it must also observe
the secrecy of the ballot.
“The decision shall be valid for the duration of the dispute
based on … on the same grounds considered when the
strike or lockout vote or taken.”
“The ministry in its initiative or upon the request of any
party supervise the conduct of the secret balloting.”
Authority of NCMB to Conduct Secret Ballot
Under the law, the conduct of secret balloting may be
done by the NCMB motu proprio or upon the request of
the party concerned.
Q. Why secret?
Because when you conduct a strike vote, you decide the
take of the union or decide to declare a lockout or
deciding the faith of the establishment. If you pursue with
the strike/lockout, there will be no work performed. The
party who would be adversely affected would be the
workers in case of strike and employers in case of lockout.
Also, to prevent one from influencing another into making
a decision.
Without secret ballot, the voter might be subject of
harassment or threat from his fellow union members.
G. Where Sec. of DOLE, in case of strike/lockout arising
from a labor dispute may cause a strike/lockout in an
industry indispensable to national interest.
Example: Pharmaceutical company, airline company
In such situation, the law says...
MOD 10 Part 8 (24-end)
Art. 278 (g) Grievance Machinery and Voluntary
Arbitration
When in his opinion there exists a labor dispute
causing or likely to cause a strike or lockout in an
industry and responsible to the national interest
the secretary of labor and employment may
assume jurisdiction over the dispute and decide to
certify the same to the commission for the
compulsory arbitration.
IOW, this provision will tell us that if there is a labor
dispute, and it will cause or likely cause a strike or lockout
in an industry and responsible to the national interest - if
that is the opinion of the Sec. of Labor then there are 2
ways that the Sec. of DOLE may act:
1. Assume jurisdiction of that labor dispute and
decide the case OR
2. Certify it to the NLRC for compulsory arbitration
exercising original jurisdiction
EFFECT OF SUCH ASSUMPTION
__________________________________________________________________________________________________
Module 9 - 11 Transcript l Labor Relations l Atty. JMM l Taucan, Evengelista, Alonzo (TEA)
Art. 278(g) continuation:
Such assumption or certification shall have the
effects of automatically enjoining the intended or
impending strike or lockout as specified in the
assumption or certification order.
JMM: So the effect there is to enjoin the conduct of strike
or what is being held to require the workers to return to
work on the part of the employer to readmit the stickers
to their former positions under the same terms and
conditions prevailing prior to the strike.
Art. 278(g) continuation:
If one has already taken place at the time of
assumption or certification all striking or locked
out employees shall immediately return to work
and the employer shall immediately resume
operations and readmit all workers under the
same terms and conditions prevailing before the
strike or lockout. The secretary of labor and
employment or the commission may seek the
assistance of law enforcement agencies to ensure
compliance with this provision as well as with such
orders as he may issue to enforce the same.
JMM: So kung merong strike on an airline company,
pharmaceutical or in a hospital which are considered
indispensable to national interest, it will not be up to the
Sec. to assume jurisdiction and he may decide the case.
In enforcing his jurisdiction, he may tap the assistance of
our law enforcement officer to:
1. ensure on the part of the strikers that they will
return to work and
2. on the part of the employer to readmit these
workers to their former positions in the same
conditions prevailing before the strike or lock-out.
IOW, there should be no change on their
employment status nor assignment.
The next paragraph of Art. 278 (g) has been spelled out
in various Supreme Court decisions.
Art. 278 (g), Second Paragraph.
In line with the national concern for and the
highest respect accorded to the right patients to
life and health, strikes and lockouts in hospitals,
clinics and similar medical institutions shall, to
every extent possible, be avoided and all serious
efforts, not only by labor and management but
government as well, be exhausted to substantially
minimize, if not prevent, their adverse effects on
such life and health, through the exercise,
however legitimate, by labor of its right to strike
and they management a lockout.
JMM: This provision also contains a situation involving
hospitals, clinics and similar medical institutions. So high
regard is placed in these types of establishments because
what is at stake here is the life and limb of the patients.
The LC itself considers these establishments as
indispensable to national interest.
Art. 278 (g), Second Paragraph continuation:
In labour dispute adversely affecting the
continued operation of such hospitals, clinics for
medical institutions, it shall be the duty of the
striking union or locking out employer to provide
within an effective skeletal workforce of medical
and other health personnel, whose movement and
services shall be unhampered and unrestricted as
are necessary to ensure the proper and adequate
protection of the life and health of its patients
most especially emergency cases, for the duration
of the strike or lockout.
JMM: So the law does not prohibit workers in hospitals
and medical institutions from exercising the right to strike,
however, the LC put much emphasis that what is
primordial would be the life and limb of the parties most
especially in emergency cases. So it mandates for
example, these hospitals and other medical institutions to
maintain a skeletal workforce that would ensure the
safety of the life and limb of the republic and the patients
in general.
Art. 278 (g), Second Paragraph continuation:
In such cases, therefore, the secretary of labor and
employment may immediately assume, within 24
hours from knowledge of the occurrence of such a
__________________________________________________________________________________________________
Module 9 - 11 Transcript l Labor Relations l Atty. JMM l Taucan, Evengelista, Alonzo (TEA)
strike or lockout, jurisdiction over the same or
certify it to the commission for compulsory
arbitration.
JMM: So that’s how fast the LC mandates the Sec. to act
on cases involving these critical establishments like
hospitals and other medical institutions.
Art. 278 (g), Second Paragraph continuation:
For this purpose, the contending parties are
strictly enjoined to comply with such orders,
provisions and/or injunctions as are issued by the
secretary of labor employment or the Commission,
under pain of immediate disciplinary action,
including dismissal or loss of employment status
or payment by the locking out employer of
backwages, damages and other affirmative relief,
even criminal prosecution against either or both of
them.
The foregoing notwithstanding, the President of
the Philippines shall not be precluded from
determining the industries that, in his opinion, are
indispensable to the national interest, and from
intervening at any time and assuming jurisdiction
over any such labor dispute in order to settle or
terminate the same.
JMM: This emphasizes the Alter Ego Doctrine.
The Sec. of DOLE is considered the alter ego of the
President that means that the President may, himself,
assume jurisdiction over a labor dispute that involves an
industry indispensable to the public interest.
Art. 278 (h) Before or at any stage of the
compulsory arbitration process the parties may
have to submit their dispute to voluntary
arbitration.
JMM: So voluntary arbitration is an alternative mode of
dissolving dispute and is considered primary mode
compared to compulsory arbitration.
Art. 278 The secretary of labor and
(i)
employment, the commission or the voluntary
arbitrator shall decide or resolve the dispute, as
the case may be. The decision of the president, the
secretary of labor and employment, the
commission or the voluntary arbitrators shall be
final and executory 10 calendar days after receipt
thereof by the parties.
JMM: If you read Art. 278 from letter a to i, it will spell
out all the conditions when the workers may exercise the
right to strike, to picket and on the part of the employer
when it may declare a lock out.
AYOKO NAAAAAAA Who are you? Your tired
classmate
Alonzo (00-18)
RIGHT TO STRIKE
We made mention that this right to engage in peaceful
concerted activities is a right that is constitutionally
protected. Similarly, the Labor Code expressly recognizes
the right of these workers.
What are the common forms of concerted
activities? (When you say concerted activities, it is
performed by 2 or more individuals.)
1. Strike
2. Picketing - The marching to and fro from the
employer’s premises where the workers usually
display placards to express their sentiments or
emotions towards the employer
3. Boycott - the concerted refusal to patronize the
employer’s goods or services and to persuade
others to a like refusal
So far in one Supreme Court case, the Court has
recognized these 3 forms of concerted activities.
The Right to Strike is not an absolute right. It is
subject to limitations provided by law because according
to the Supreme Court, it results to a disquieting effect on
not only the relationship between labor and management
but also on the general peace and progress of society.
Therefore, it must be regulated within reasons by
balancing the interest of labor and management together
with the overarching public interest.
__________________________________________________________________________________________________
Module 9 - 11 Transcript l Labor Relations l Atty. JMM l Taucan, Evengelista, Alonzo (TEA)
I illustrated last meeting an example of a strike involving
a pharmaceutical company and a hospital. Definitely,
these types of establishments are considered
indispensable to national interest and therefore there is
an overarching public interest that must likewise be
protected whenever the workers decide to strike.
First and foremost, you must also remember what is
meant by a strike.
STRIKE - A temporary stoppage of work as a result
of an industrial or labor dispute.
**check the meaning of industrial dispute**
Because without an industrial dispute, definitely
temporary refusal of the workers to work may be
considered as a breach of the employer’s disciplinary rules
and regulations and therefore may require administrative
sanction.
TN: Workers although they are given the right to
strike cannot do so in the absence of an industrial
or labor dispute. They cannot just walk out of their job
for any reason whatsoever, otherwise, that strike will not
be considered a protected strike.
LIMITATIONS TO THE RIGHT TO STRIKE
1. Limitations provided by Law
2. Limitations provided by Contract
Limitations provided by Law
Under the Labor Code before workers may stage a strike,
they have to comply with certain conditions to hold a
valid strike.
1. File a Notice of Strike
2. Observance of the applicable cooling-off period
3. Conduct of a Strike Vote
4. Submission of the Strike Vote at least 7 days
before the intended date of strike.
5. Observance of the 7-day waiting period
After they have complied with these requirements, and
decided to stage a strike they have to make sure they
do not violate any prohibited activities that are
defined by law.
INNOCENT BYSTANDER RULE
The 3rd persons who are not parties to an industrial or
labor dispute should not be affected or disturbed by a
strike that is conducted by the workers
Illustration:
In Ayala Mall or SM Department store if there is an outlet
or establishment within the mall where the workers have
an existing labor dispute with their employer, they have
the right to strike but they cannot do so if it will prejudice
innocent bystanders like for example, owners and
consumers of other outlets that are not involved in that
industrial or labor dispute.
while it is valid, cannot be enforced as against the
certified bargaining union including the workers.
Because unfair labor practice is a violation, not only of
civil rights of persons but likewise constitute a criminal
offense. When you are committing a criminal offense, that
cannot be subject to a compromise and that could not be
subject to a prohibition under a CBA.
WHO MAY STRIKE?
Employees in the private sector - allowed by Labor
Code

Otherwise, under the innocent bystander rule, these 3rds Employees in the public sector, while they have the
persons who are not parties to a labor/industrial dispute right to self-organization, while they can form and
may seek redress from our regular court to prohibit the organize their association of workers for their mutual aid
strikers from causing harm or injury their establishment and protection, they cannot stage a strike because
including their operations the right to strike is not granted to them by law.
The right to self organization is subject to limitations
Another limitation by law is the provided by law.
NO-STRIKE POLICY of the Government
This is embodied in various Presidential Decrees which Under existing Civil Service law, rules and regulations,
enumerate what are the activities that are considered employees in the public sector are prohibited and
indispensable to national interest and therefore, workers disallowed to engage in striked for obvious reasons. If you
there cannot stage a strike if, for example, the SOLE has are part of the government and the government provides
assumed jurisdiction. public service. There will be an interruption or
disruption of public service if we were to allow
What about in a contract? employees in the public sector to stage a strike.
That is not good for the public welfare.
SC: A no strike, no lock out policy incorporated in
a CBA is a valid stipulation. Imagine:
If you allow employees in the DPWH, DOJ, DepEd to stage
If the workers decide to strike, they may be held a strike, that will cause an unnecessary disturbance to the
accountable under the no-strike, no-lockout provision of rendition of public service. Therefore, the law does not
the CBA, insofar as economic strikes are concerned. grant the right to strike to these workers in the public
sector.
IOTW, if in the CBA there is a no-strike, no lock out
provision, the union is bound not to stage a strike that is REMEDIES OF WORKERS IN THE PUBLIC SECTOR
based on economic grounds because if they do so they
may be held accountable for whatever obligations that (Especially that strike is considered the last weapon in
they may have to the employer who is the other party to order for the workers to secure collective bargaining and
the CBA. protect themselves against unfair labor practice)
SC:Workers in the public sector who are not
That strike may be held illegal for violation of the no allowed to stage a strike can petition Congress for
strike, no lockout stipulation in the CBA. the betterment of the terms and conditions of
employment which are within the ambit of
The SC has confined that application of that legislation; or they can perhaps negotiate with the
provision only to economic strike. If the strike appropriate government agency where they are
involved unfair labor practice, that provision, employed for the improvement of their conditions
__________________________________________________________________________________________________
Module 9 - 11 Transcript l Labor Relations l Atty. JMM l Taucan, Evengelista, Alonzo (TEA)
of employment, particularly those which are not
fixed by law. It is not unusual for workers of the public
sector to have a collective negotiated agreement.
Not CBA because workers of the public sector cannot
bargain with their employer (the government) because
their compensation and terms of employment are fixed by
law. What they can do is they can negotiate with their
respective government agencies and come up a collective
negotiated agreement; fixing those conditions of
employment that are within the scope of power of their
concerned government agencies.
PROCEDURE TO CONDUCT A VALID STRIKE
Based on Art. 278 that we quoted earlier, it will appear
that the following are the step by step procedure in
conducting a valid strike.
1. Filing of a notice of strike
- WHERE: Regional Branch of the National
Conciliation and Mediation Board having
jurisdiction over the workplace of the union
members.
NCMB has a pro forma notice wherein the union
will only have to fill in the blanks and have this
notice duly filed with the Regional Branch of the
NCMB.
A copy of this notice must be furnished to
the employer concerned.
Remember: The notice of strike is NOT filed with
the DOLE, nor with the SOLE, nor with the Labor
Arbiter, nor the arbitration branch of the NLRC.
Once the notice of strike is filed by the legitimate labor
organization or the certified bargaining union, depending
on what ground it is, we must remember that the notice
of strike must be grounded on those authorized by
law:
- Unfair Labor Practice
- Includes malicious &/or flagrant refusal
to comply with the economic provision of
the CBA (which under the Labor Code is
considered as well as unfair labor
practice)
- Bargaining Deadlock
If you are the counsel for a union, before thinking of filing
a notice of strike, you must know whether there exists a
ground to strike. If there exists a ground to strike, then
Example: Violation of the union security clause. There is
you may proceed with the filing of a notice of strike.
a closed shop agreement where the employer is under
obligation to hire only members of the certified bargaining
__________________________________________________________________________________________________
Module 9 - 11 Transcript l Labor Relations l Atty. JMM l Taucan, Evengelista, Alonzo (TEA)
**I want you to Download a pro forma notice of strike
from the website of the NCMB**
Do you need to have a strike vote when you file a
notice of strike? NO.
KAPOYYYYYYY NAAAAAA RAWRRRRR
Evangelista 18-36 mins
It is enough that the notice of strike is filed by the union
officer or authorized person by the union. Usually, it is the
president of the union who initiates the filing of the notice
of strike.
Once you file the notice, NCMB will determine from the
face of the notice whether it conforms with law. If the
NCMB finds out that there is no strikable issue, then it will
inform the union of the existence of a non-strikable issue.
Q. What could be a non-strikable issue?
1. Inter-union and intra-union disputes are not
strikable issues. When you speak of inter-union
dispute, it involves a dispute between and among
the labor unions. When you speak of an intra-
union dispute, it speaks of a dispute between the
union and its members.
IOW, these disputes do not have anything to do with the
employer. Thus, filing a notice of strike of strike on the
basis of these issues are non-strikable issue.
If it is a non-strikable issue, NCMB will refer the matter to
the agency of government which has jurisdiction over
inter/intra-union dispute which is the Bureau of Labor
Relations.
2. Issues that has already been brought before
voluntary or compulsory arbitration.
NCMB will defer any action to that voluntary arbitrator or
labor arbiter where the dispute has been brought. It will
no longer resort to its power or authority by encroaching
upon the jurisdiction of the voluntary arbiter/labor arbiter.
3. Violating of CBA involving political provisions
union and to require the employees to remain as
members of the union as a condition for their
employment. There is a union dismissing one of its
members and it is requesting the employer to dismiss the
employee based on the enforcement of union security
clause.
If that were the case, that is a violation of the CBA
involving a political provision if the employer refuses to
grant the request of the union.
Reason: The proper recourse is to refer the dispute to
the grievance machinery that is embodied in the CBA. If
it remains unresolved, refer it to voluntary arbitration.
4. If the issue in the notice of strike is a
representation issue, that will have to be
endorsed by the NCBM to the med arbiter who
has the original jurisdiction over representation
issues.
Example: Certification election issues. A was able to
organize a labor union in his establishment and then A
asks the employer that they have the majority support
and A demands recognition as the SEBA. However, the
employer refuses so the union files a notice of strike.
Remedy: Submit for certification election
Reason: It is the democratic means of determining
whether it enjoys the majority representation.
Strikable Issue
NCMB immediately schedules marathon mediation-
conciliation conferences—it is a conference that will
require the employer and the LLO to appear before the
NCMB for purpose of the possibility of settling the dispute.
Under the LC, while the proceedings are ongoing the
parties are not allowed to perform any act that will disrupt
the conduct of the conciliation conferences.
The parties are required to exhaust all their efforts during
the conciliation conferences. ie. walk-out, ignore
conferences
Reason: Once a notice of strike is filed before the NCMB,
it can assume power and authority to act on it. Q. Who will conduct the strike vote?
The union.
__________________________________________________________________________________________________
Module 9 - 11 Transcript l Labor Relations l Atty. JMM l Taucan, Evengelista, Alonzo (TEA)
Observance of Applicable Cooling-off Period
a. 30 days if the ground is bargaining deadlock
b. 15 days if the ground is unfair labor practice
XPN: If the ULP involves union-busting, then 15 day
period may be dispensed with by the labor union.
Reason: Intended to accord the parties the opportunity
to amicably settle the dispute with the assistance of the
NCMB.
Q. Does the mere lapse of the cooling-off period
authorize the workers to stage a strike?
No. Another requisite is the conduct of a strike vote and
submission of the strike vote at least 7 days before the
intended date of strike.
Q. Can the parties suspend the cooling-off period?
They may agree to suspend it if the purpose is to enable
them to further explore the opportunity to amicably settle
the dispute. It is not prohibited under the existing rules.
Convert Notice of Strike into a Preventive
Mediation Case
NCMB may also convince the parties to convert the notice
of strike into a preventive mediation case.
Effect: If it is able to convince the parties, the effect is
the dropping of the notice of strike from the calendar of
the NCMB. And it is as if there was no filing of the notice.
If they go on strike, the strike may be declared illegal.
Preventive Mediation – it is potential labor dispute
which are the subject of a formal and informal request for
conciliation/mediation assistance sought by either or both
parties or upon the initiative of the NCMB to avoid the
occurrence of an actual labor dispute.
It will prevent an actual labor dispute. However, it is not
automatic to convert to a preventive mediation case. It
requires the NCMB to convince the parties.
Conduct of a Strike Vote
After the observance of the cooling-off period is the
conduct of a strike vote requirement.
For a strike vote to be valid, there are three requisites:
a. It must be approved by the majority of the total
union membership in the bargaining unit
concerned
b. It must be conducted by secret ballot
c. In a meeting or referenda called for that purpose
When
It may be done by the labor union at any time. It may
done after the filing of a notice of strike, during the
cooling-off period or after the lapse of cooling-off period.
Notification to the NCMB
Under the Revised Rules of Procedure of the NCMB, in the
conduct of a strike vote, the NCMB must be notified at
least 24 hours so it can provide assistance ie. sending a
representative to assist
Reason: Members of the union could easily fabricate the
results of the strike vote or coerce the members to vote
in favor of strike. To ensure the integrity of the strike vote
and prevent coercion of members. To avoid union
members to subject of harassment of the union leaders.
TN: Voting by secret ballot.
If there is a valid strike vote, it will be submitted to the
NCMB where the notice of strike was filed at least 7 days
before the intended date of strike.
Therefore, a union cannot conduct a strike immediately
after the conduct of a strike vote and observe the 7-day
waiting/strike ban period.
Reason: To give the NCMB an opportunity to verify
whether…
JMM: … that is intended to give the NCMB an opportunity
to verify whether the projected strike really carried the
imprimatur (not sure if this is what he meant) of the
majority of the union members.
Afterall, the decision to stage a strike must rest on rational Art. 279 of the LC provides for the worker’s rights
basis free from emotionalism and suede by the tempers
and tantrums of few hot heads and firmly focus on the
legitimate interests of the union.
__________________________________________________________________________________________________
Module 9 - 11 Transcript l Labor Relations l Atty. JMM l Taucan, Evengelista, Alonzo (TEA)
Alam mo naman yung mga union leaders once they do
not get what they want from management they become
so impatient, stubborn and hot heads sometimes. So to
prevent the situation the law requires that the union
observe a 7-day waiting period; and that starts once you
submit the strike vote to the NCMB - this starts the
running of the 7-day period.
During that 7-day period the NCMB will now verify with
the union “Are you now really ready to stage a strike? Did
you really deliberate the consequences of staging a
strike? Are you really sure that your strike will be
successful because you are waging a war against the
employer?” When you stage a strike, you will be governed
by the Principle of No work, no pay. And the strike has no
definite period. It may last indefinitely and during this
period, the workers are not paid because they are not
working. “Are you ready to face that?” And when the
union says “OK, we are ready.” Then after the lapse of
the 7-day period, the union may now stage an actual
strike.
So there are certain conditions or requisites before a bar
strike may be conducted before you can stage an actual
strike:
1. Filing a notice of strike
2. Observance of the cooling off period
3. Conduct of a strike vote
4. Submission of the strike vote to the NCMB
5. Observance of the 7-day waiting period
Once you comply with these requisites, the union may
now stage an actual strike.
Q: Would that be adequate?
Answer: NO because the law also provides that in the
conduct of strike, the workers and employers are
prohibited from employing any threat, coercion or
intimidation to one another; or by the union employing
threat of coercion intimidation against non-striking
members.
in case of an actual strike.
(b) no person shall obstruct, impede or interfere with, by
force, violence, coercion, threats or intimidation, any
peaceful picketing by employees during any labor
controversy wherein the exercise of the right to self-
organization and collective bargaining, or shall aid or abet
such obstruction or interference
(c) No employer shall use or employ any strikebreaker nor
shall any person be employed as a strikebreaker.
(e) No person engaged in picketing shall commit any act
of violence, coercion or intimidation or obstruct the free
ingress to or egress from the employer's premises for
lawful purposes or obstruct thoroughfares.
JMM: They have to confine themselves in the so-called
strike area. You cannot just strike anywhere and that is
exactly at the employer’s premises/establishments or
even establishments of the employer where there is
commission of the so-called run-away shop which is
considered an unfair labor practice.
Ex: If I am a manufacturing company and my plant is
situated in a particular barangay in Lapu-lapu city and the
workers would stage a strike. It is not unlikely that the
employer may transfer the machinery and equipment to
another place. That is illegal because that is a run-away
shop. Yung are na yan where these machinery and
equipment were brought, that will also be considered a
strike area because the employer cannot defeat the right
to strike.
JMM: The right to strike is a constitutionally protected
right. It’s the last weapon of the workers to protect
themselves from ULP and in order to get whatever
demands that they need in the process of collective
bargaining.
However, please take note that under the LC, there’s an
exception wherein the right to strike may be prohibited
because there’s also the No Strike Policy of the
government.
GR: You cannot enjoin nor prohibit the right to strike.
EXC: If the labor dispute causes or is likely to cause a Q: Who has the jurisdiction to declare a strike illegal?
strike or lockout in an industry indispensable to national
interest, the LC authorizes the Sec. of the DOLE to
__________________________________________________________________________________________________
Module 9 - 11 Transcript l Labor Relations l Atty. JMM l Taucan, Evengelista, Alonzo (TEA)
assume jurisdiction over the labor dispute. After that, the
striking workers are under duty and obligation to return
to work whether they like it or not. On the part of the
employer, he is under the duty to readmit these workers
under terms and conditions prevailing before the strike.
TN: if they continue to strike despite the assumption of
jurisdiction by the Sec. of DOLE, the law and
jurisprudence tell us that these workers will be
committing a prohibited act; then they could be subject
to disciplinary action by the employer; they may even be
subject to disciplinary sanction including dismissal from
employment.
JMM: The Sec. of DOLE cannot assume jurisdiction if it
does not involve an industry indispensable to national
interest, otherwise, it will be considered void and you can
challenge that assumption to the CA through a petition
for certiorari (GADALEG).
Assignment: Check the IRR for those classified
industries as indispensable to the national interest.
Ex: The General banking Act declares banks as
indispensable to national interest for they are important
for our economic existence and survival.
Other examples but please check IRR:
1. Power sector
2. Hospitals
3. Educational institutions
4. Airline industry
5. Shipping industry
Ex: Definitely if you're operating a karaoke bar or a
nightclub, that is not considered an industry indispensable
to national interest. So the Sec. of Labor cannot assume
jurisdiction in this example that would be in excess of his
jurisdiction.
LEGALITY OF STRIKE
TN: The law also provides consequences if the union and
the workers stage an illegal strike.
A: Under the LC, the Labor Arbiter has jurisdiction to
declare s strike illegal. In fact, actions involving the
legality of strike and lockout is within the original and
exclusive jurisdiction of the Labor Arbiter.
TN: While the law says “original and exclusive”, it does
not prevent the Sec. of DOLE from assuming jurisdiction
over that issue in cases where the Sec. of DOLE may
assume jurisdiction such as labor disputes causing or
likely to cause a strike or lockout in an industry
indispensable to national interest.
So while the jurisdiction of the Labor Arbiter is
original and exclusive, it is also concurrent with
the Sec. of DOLE.
TN: The legality of strike may be taken cognizance by a
Voluntary Arbitrator to the exclusion of the LA, IF and
ONLY WHEN THE PARTIES AGREE.
CONSEQUENCES OF ILLEGAL STRIKE
Q: What are the consequences (of illegal strike)?
1. Union Officers
A: Union officers who knowingly participate in an
illegal strike i.e., knowing that there is no observance
of the requisites of staging a strike, will be deemed to
have lost their employment status.
JMM: So if the employer files a petition with the LA to
declare the strike illegal and the employer is able to prove
that the union officers participated knowingly in an illegal
strike, then the LA may declare these officers to have lost
their employment status. IOW, they will be terminated
from their employment.
That is the sanction provided by law. So it is not the
employer dismissing them, is it the law which operates to
declare their employment status as deemed forfeited or
lost.
2. Union members
A: Under the LC, if the union members commit an illegal
act during a strike, that is when they are deemed to have
lost their employment status.
__________________________________________________________________________________________________
Module 9 - 11 Transcript l Labor Relations l Atty. JMM l Taucan, Evengelista, Alonzo (TEA)
TN: So mere participation of union members in an illegal
strike will not result in the loss of their employment status
but it is the commission of an illegal act.
Q: What are illegal acts?
Examples:
1. the union members continue to stage a strike
despite the assumption of jurisdiction of the
DOLE Sec.
2. If union members vandalize the employer’s
establishment
3. Trying to burn down the establishment of the
employer
4. Trying to harm and injure non-striking
employees.
5. Barricading the ingress to or egress from the
employer’s premises
JMM: These union members can be held accountable. If
there’s a petition to declare the strike illegal, they will also
suffer the loss of their employment status aside from the
fact that management can also enforce disciplinary action
against them independent of what the law provides. It
depends upon how the employer will act upon the illegal
strike.
In the bar exam, the consequences of the union officers
and members in an illegal strike have been repeatedly
asked. You have to make a qualification!
TN: If the union decides to stage a strike, the NCMB has
still the power and authority to summon the partes for a
conciliation and mediation conferences where the NCMB
may allow the parties to conduct an improved offer
balloting or a reduced offer balloting. This is most
applicable in bargaining deadlock cases.
Take note of the definition of these: improved offer
balloting or a reduced offer balloting!
JMM: Tuloy--tuloy lang ang conciliation efforts ng NCMB.
Again, the strike will run indefinitely. Let’s see who will
surrender. Will it be the employer or the union? Maybe
the employer will sit down with the union and come up
with an amicable solution. Or maybe the union may give
up and ask to return to work.
If their offer to work is made unconditionally, the
employer is obliged to accept them back to work and
continue normal operations.
If there are conditions, the employer may not accept
these conditions and therefore may refuse them from
reporting to work. Then the strike will just have to
continue.
TN: Do not forget the power of the employer to declare
a lockout or temporary refusal on the part of the employer
to provide work. That will also operate in the same
manner as if there is a strike. Dapat lawful din yung
lockout otherwise the employer may be held accountable.
Consequences of illegal lockout:
1. Readmit the workers back to work
2. May be held accountable to pay backwages
3. To reinstate the workers in their former positions
without loss of seniority rights
But if the lockout is valid, it may also last indefinitely.
Another agency that exercises jurisdiction is the OFFICE
OF THE VOLUNTARY ARBITRATOR.
The Rule: The Labor Code contemplates
compulsory arbitration. That is not really favored
because in compulsory arbitration, the parties are left
with no choice but to submit their dispute to a person who
will have to try, hear and resolve that dispute. That
dispute will have to undergo a mechanism where it may
be appealed to higher tribunal and then eventually
brought up to the appellate court and then to the
Supreme Court.
In compulsory arbitration you will notice that the process
is quite long and rigid.
The first topic that I mentioned in 11 is
Are there other Alternative Dispute Resolution
mechanisms for dispute prevention? YES.
1. Conciliation/Mediation
2. Voluntary Arbitration
3. Grievance Handling

One is Conciliation and Mediation. We have discussed

MOD 11 Part 1 this thoroughly when we were on the topic of angle entry
ALONZO (00-16) approach and in proceedings before the Labor Arbiter. We
also discussed the topic of Conciliation and Mediation
REVISED GUIDELINES IN THE CONDUCT OF before the NCMB.
VOLUNTARY ARBITRATION PROCEEDINGS
Conciliation and Mediation is an alternative
Browse our course syllabus and look at important features dispute resolution mechanism to
and topics. prevent/terminate a dispute.

You will note that when you studied Labor Standards, the VOLUNTARY ARBITRATION
agency which exercises compulsory arbitration include Also considered as an alternative dispute resolution.
the arbitration branch of the NLRC referring to the Labor
Arbiter and we also have the REgional Director of the GRIEVANCE HANDLING
DOLE when it comes to simple money claims. Workplace cooperation which involves the Labor
Management Council or employee involvement or
When you initially studied Labor Relations, you came employee participation schemes
across the jurisdiction of the arbitration branch of the
NLRC; the LA and that of the Regional Director of the
Why do we include Workplace Cooperation?
DOLE. You came across the authority and power of theParticularly on the creation of a Labor Management
Bureau of Labor Relations and also the jurisdiction of the
Council. It is an Alternative Dispute Resolution because if
Sec. of Labor and Employment in labor disputes causing
the employer has in place together with the workers a
or likely to cause strike or lockout in an industry Labor MAnagement Council, which is composed of equal
indispensable to national interest. representatives from the management as well as the
workers with the worker’s representatives nominated
directly by majority of the employees. That is a
__________________________________________________________________________________________________
Module 9 - 11 Transcript l Labor Relations l Atty. JMM l Taucan, Evengelista, Alonzo (TEA)
mechanism that may also prevent dispute because it is
at this level that employers and workers may freely
discuss these issues/concerns. If these issues/concerns
are amicable resolved then we can safely say that it is an
ADR mechanism.
Together with that would be employee involvement and
employee participation schemes.
REVISED GUIDELINES IN THE CONDUCT OF
VOLUNTARY ARBITRATION PROCEEDINGS
Earlier on we have the NLRC Rules of Procedure as
amended which applies to proceedings before the Labor
Arbiter and the NLRC.
When we speak of Voluntary Arbitration, the NCMB came
up with a separate Rules of Procedure.
Chikaminute:
I was personally able to handle a voluntary arbitration
case involving a softdrinks manufacturer and a certified
bargaining union. In that case, which eventually reached
the SC, you will note the step by step procedure on how
the case was brought to voluntary arbitration and
eventually ended with the SC.
FUNDAMENTAL PRINCIPLES revolving around
Grievance Machinery and Voluntary Arbitration
(ART. 273 - 277)
ART. 273 Grievance Machinery & Voluntary
Arbitration - The parties to a CBA shall include therein
provisions that will ensure the mutual observance of its
terms and conditions. They shall establish a machinery
for the adjustment and resolution of grievances arising
from the interpretation or implementation of their CBA
and those arising from the interpretation or
enforcement of company or personnel policies.
All grievances submitted to the grievance machinery
which are not settled within 7 calendar days from the
date of its submission shall automatically be referred to
voluntary arbitration prescribed in the CBA
procedure for the selection of such Voluntary Arbitrator
or panel of Voluntary Arbitrators, preferably from the
listing of qualified Voluntary Arbitrators duly accredited
by the Board (NCMB). In case the parties fail to select
a Voluntary Arbitrator or panel of Voluntary ARbitrators,
the Board shall designate the Voluntary Arbitrator or
panel of Voluntary Arbitrators, as may be necessary,
pursuant to the selection procedure agreed upon in the
CBA, which shall act with the same force and effect as
if the Arbitrator or panel of Arbitrators has been
selected by the parties described above
.
Article 273 involves an interplay of various
principles.
I. When you have a CBA it presupposes that
there is an employer and there is a Certified
Bargaining Union or SEBA on the other
hand.
- The latter represents all the employees who are
members of the bargaining unit. So instead of the
workers individually negotiating with the
management, they will be represented by the
SEBA. Sentence No. 1 says “The parties to a CBA
shall include therein provisions that will ensure
the mutual observance of its terms and
conditions”
- It is very natural that when the parties negotiate
and conclude the CBA they will put there a
provision that the parties agree to be bound by
the terms and conditions of the CBA and the
parties commit to hold themselves accountable
and liable in case of violation of the CBA.
- What is important is the 2nd sentence of
Art. 273. “They shall establish a machinery
for the adjustment and resolution of
grievances arising from interpretation or
implementation of their CBA and those arising
from the interpretation or enforcement of
company or personnel policies.”
- “They” = the employer and the certified
bargaining union

For this purpose, parties to a CBA shall name and

-
When they negotiate, bargain and conclude the
designate in advance a Voluntary Arbitrator or panel of
CBA, they are mandated by law to establish a
Voluntary Arbitrators, or include in the agreement a
machinery for the adjustment and resolution of
__________________________________________________________________________________________________
Module 9 - 11 Transcript l Labor Relations l Atty. JMM l Taucan, Evengelista, Alonzo (TEA)
 grievances arising from interpretation of the CBA
and those arising from the interpretation or
enforcement of company or personnel policies.
- The law is, in effect, saying if you (employer and
the certified bargaining union ) have issues,
disputes arising from the interpretation and
implementation of the CBA, you have to resolve
that dispute through the grievance machinery.
- The same thing is true whenever there are issues
arising from interpretation or enforcement of
company personnel policies.
- These company personnel policies are not
company code of conduct. They are long term
provisions that underscore the philosophy of the
management. They may refer to long-term
provisions on compensation, benefits, promotion,
advancement and job opportunities etc.
- The parties may include the company’s code of
conduct in the CBA as a company policy. In the
absence of such stipulation, it does not
necessarily follow that the CBA shall include the
company code of Conduct.
- Imagine: If you include the company code of
conduct, smoking by an employee which is
sanctioned by suspension for how many days
without pay can be subject to grievance. If it will
not be resolved by grievance, it shall be resolved
by Voluntary ARbitration. Do you see how absurd
it is?
- It will put too much congestion on cases that will
be handled by the grievance machinery. It will
cause too much issues that will affect the relation
between labor and management.
- Company personnel policies should only be
confined to those long-term provisions that
underscore management philosophy regarding
compensation, benefits, promotions, job
opportunities, and so on.
- For a more accurate definition, see the SC Case
on what a Company Personnel Policy is.
__________________________________________________________________________________________________
Module 9 - 11 Transcript l Labor Relations l Atty. JMM l Taucan, Evengelista, Alonzo (TEA)
- IOTW the Labor Code provides that the parties to
the CBA must establish a grievance machinery.
How will the parties establish this grievance
machinery? IT’S UP TO THEM.
They can create a grievance machinery composed of
equal representatives from management and the union.
Evangelista 16-32 mins
…from management and union. In this grievance
machinery, there will be a committee who will resolve the
dispute arising from interpretation or implementation of
CBA and personnel company policy.
If the complaint originated from the union, it is usually
brought up to the grievance machinery by the shop
steward. If it originated from management, it is usually
brought by the employer representative.
If the dispute is about the interpretation/implementation
of CBA/personal company policy, do not go on
strike/lockout. Submit the dispute to the grievance
machinery.
In fact, it also mandates all grievances submitted to the
grievance machinery which are not settled within 7
calendar days from the date of submission shall
automatically be referred to VA prescribed in the CBA.
Aside from grievance machinery, parties to a CBA must
also include the mechanism on VA wherein there could a
voluntary arbitrator or panel of voluntary arbitrators. In
the absence of stipulation, the rules provide that there will
be a single arbitrator.
TN: If you do not know how to establish a grievance
machinery, check DO 40-03 as it provides the mechanism.
It is not perfect because the notice in the IRR is a notice
coming from the union, it did not consider that an ER may
also file a complaint or grievance against the union
regarding the implementation/enforcement of
CBA/Personnel company policy.
Voluntary Arbitration
Parties to a CBA may designated a voluntary arbitrator in
advance or panel of arbitrators.
The guidelines speak of permanent arbitrator or ad-hoc
arbitrator.
The parties may choose in advance or they may choose
from the list of accredited arbitrators of NCMB when the
issue arises between them.
Law students may even apply for voluntary arbitrators by
the NCMB if they have the qualifications.
The voluntary arbitrator could be a single arbitrator or a
panel of arbitrators. It depends on the agreement of the
parties. The law only provides the designation and
mechanics.
In fact, SC ruled that there is no particular set up in
voluntary arbitration. It is up to the parties to stipulate in
the CBA.
Jurisdiction of VA
Art 274. Original and exclusive on unresolved
grievances.
If the grievance was unresolved in the grievance
machinery, it will be referred to VA who will have original
and exclusive jurisdiction on unresolved grievances
arising from interpretation/implementation of
CBA/personnel company policy.
Violations of a CBA, except those gross in character, shall
not longer be treated as unfair labor practice and shall be
resolved as grievance under the CBA. Gross violation shall
mean flagrant refusal to comply with the economic
provisions in the CBA.
Not all violations of CBA is UPL; only violations of the
economic provisions. If it is not UPL then it is a grievance
machinery within the jurisdiction of VA.
TN: Not compulsory arbitration.
Research: Can the parties designated the labor
arbiter to be the VA?
ART 274. The Commission, its regional offices and RD of
DOLE shall not entertain disputes, grievances or matters
under the exclusive and original jurisdiction of VA or panel including efforts to effect voluntary settlement between
of Vas and shall immediately dispose the same to the
grievance machinery or VA in the CBA.
__________________________________________________________________________________________________
Module 9 - 11 Transcript l Labor Relations l Atty. JMM l Taucan, Evengelista, Alonzo (TEA)
If a party, ER or certified bargaining union, files a
complaint before the LA but the issue involves an CBA
arising from the CBA/unresolved grievance of
implementation of company policies, the LA shall not
entertain the dispute.
If you are the LA, know which issues belongs to your
original jurisdiction. If it belongs to the jurisdiction of the
VA, do not entertain that.
That directive is addressed not only to the LA but also the
NLRC and RD.
VA is considered an ADR. In fact, it is preferred that
compulsory arbitration.
NCMB may encourage the parties to submit their dispute
to VA. It is all about VA.
ART 275. The original and exclusive jurisdiction of VA
pertain on those 2 matters mentioned.
Q. Is it possible for the VA to try, hear and resolve
other disputes?
VA/Panel of VA, upon agreement of the parties, shall hear
and decide all other labor disputes including UPL and
bargaining deadlock. Thus, the jurisdiction of the VA may
include all cases falling under the original and exclusive
jurisdiction of the LA as long as there is agreement
between the parties.
The jurisdiction of VA is more or less concurrent with the
LA but only if there is agreement between the parties
because the essence of VA is consent. Without such,
jurisdiction of the VA will have to be confined on
grievances arising from interpretation/enforcement of
CBA/personnel company policies.
Example: Termination disputes if there is agreement.
Q. How can they agree?
Stipulate in the CBA
Procedure in the VA
ART 276. Power to hold hearings, receive evidence and
take whatever action is necessary to resolve the issue
the parties. All parties to the dispute shall be entitled to
attend the dispute proceedings. Attendance of any third
party or exclusion of any witness from the proceedings
shall be determined by the VA. Hearing may be adjourned
for a cause or upon the agreement of the parties.
If you want to take a look at the detailed procedure, look
at the Revised Procedural Guidelines in the Conducts of
VA proceedings.
VA performs quasi-judicial function. He has the power to
try, hear and decide labor dispute.
In fact, he has the power to issue to writ of execution
requiring the NLRC or regular courts whom the parties
may designate in the execution agreement may execute
a final decision or award.
TAUCAN (32:01 - 48 min)
Art. 276, Par. 5. The Voluntary Arbitrator has the power
to issue a writ of execution requiring either the sheriff of
the NLRC or the regular courts or any public official whom
the party may designate in the submission agreement to
execute the final decision, order or award.
JMM: So the VA has the power to execute just like a
judge. He is just like a LA only that he performs voluntary
arbitration proceedings.
Most common question asked:
Is the VA, designated under the LC, considered a public
officer? Does he need to submit SALN?
JMM: Anong answer? Kasi delekado pag public officer ka
kasi you’ll be governed by the Anti-graft and corrupt
practices Act, then you’ll have to be aware of your liability.
Find the answer to my question!
Art. 277. Cost of Voluntary arbitration and
voluntary arbitrators fee.
The parties to a collective bargaining agreement shall
provide therein a proportionate sharing scheme on the
cost of voluntary arbitration including the voluntary
arbitrator’s fee. The fixing of the fee of voluntary
arbitrators, whether shouldered wholly by the parties or
subsidized by the special voluntary arbitration fund, shall JMM: In a case that I personally handled, there was a
take into account the following factors:
a. nature of the case
b. time consumed in hearing the case
c. professional standing of the voluntary arbitrator
__________________________________________________________________________________________________
Module 9 - 11 Transcript l Labor Relations l Atty. JMM l Taucan, Evengelista, Alonzo (TEA)
d. capacity to pay the parties
e. Fees provided for in the revised rules of court
JMM: So pwede kayo mag sideline as VA! You get a VA’s
fee and may schedule of fees yon sa NCMB, so you get
your money there.
In my experience, before a VA was charged 25K per issue.
Initially if we placed in our submission agreements so
many issues and when the VA told us “Hey, my VA’s fee
is 25K per issue” we started to narrow down the issues
into 1. Nagtipid kami kasi normally in a CBA, we stipulate
there “equal sharing” in the union and the employer for
the cost of VA. So if we submit an issue to VA, this is an
arrangement of the share of the VA’s fee; it’s stipulated
in the CBA but the amount will depend on the VA.
So you can dictate how much your VA’s fee will be as long
it is not unconscionable!
(chika lang. Check this case involving his law firm)
It’s so nice to handle a VA case kasi he decision becomes
final and executory after 10 calendar days. While the law
does not prohibit a MR before the VA,kapag na deny the
decision of the VA becomes final and executory. So your
only hope is to bring it up to the CA under petition for
review under Rule 43.
Q: Bringing the decision of the VA to the Ca, is it
10 calendar days or 15 under the ROC?
There is a SC case on this so watch out for the answer.
REVISED PROCEDURAL GUIDELINES IN THE
CONDUCT OF VOLUNTARY ARBITRATION
TN: Know the definition of the ff:
1. Voluntary Arbitration
2. Permanent Arbitrator
3. Ad-Hoc Arbitration
4. Submission Agreement
5. Notice to Arbitrate
6. Grievance procedure
company that I was representing and there was a
bargaining union. They had a CBA wherein there is a set
up in grievance machinery and VA. So when there is an
issue involving the interpretation and enforcement of the
CBA and/or the company personnel policy or other labor
disputes, the parties to the CBA agreed to submit it to the
grievance machinery.
(Caveat: ako ra ang nag himo2 sa steps guys. Step
1 ra taman si JMM)
Step 1: May issue yung labor union so we submit the
issue to the grievance machinery.
Q: Who submits the issue?
A: The Staff Steward.
GRIEVANCE MACHINERY
JMM: The grievance machinery is composed of the
Grievance Committee with:
1. Representatives from the management and
2. Representatives from the union
Continuation of JMM’s experience: They tried their
best to resolve the dispute but they were not successful.
So we look at the CBA and it says there “if it were not
resolved then it will have to be referred to Voluntary
Arbitration.” And it says there “there is the VA set up: you
have to choose a VA from the list of accredited arbitrators
from the NCMB.”
Step 2: So what we did was to submit a notice to
arbitrate with the NCMB and the latter immediately acted
on it by requiring the parties to appear before the NCMB.
Step 3: Then the NCMB says “Ok, since your CBA
contemplates VA, here is our list of accredited VA.” The
union and management were there and we selected a VA.
After selection, the NCMB notified the selected VA
whether he accepts the designation or not. The first VA
declined so the NCMB asked the parties to designate
another VA.
Step 4: The VA accepted the designation and scheduled
a Mandatory conciliation and mediation conference.
So both the employer and the union appeared before the
designated VA.
__________________________________________________________________________________________________
Module 9 - 11 Transcript l Labor Relations l Atty. JMM l Taucan, Evengelista, Alonzo (TEA)
Step 5: The VA tried to explore “what’s the problem
between you parties?” OK, here are my solutions, do you
accept or not? Eventually the parties could not agree to
any settlement to the issue.
Step 6: So in that case, the VA will have to ask the parties
to submit their position papers.
Step 7: So when we submitted our respective position
papers, the VA rendered his decision.
TN: Before he rendered his decision, there was a
discussion on the amount of his VA’s fees.
BTW, JMM lost the case. The VA sided with the union.
Remedy: Bring up the decision of the VA to the CA via
rule 43 within 15 calendar days.
BUT, I brought it up within 10 calendar days.
WHY?
A: Because the decision of the VA becomes final and
executory after 10 calendar days.
JMM: So on my own free will, I decided to bring it up
before the 15th day. Because pag nagging final and
executory yon, it could be subject to a writ of execution
and I don’t want that to happen so I brought it up within
10 days to the CA.
Remedy: In the CA, by way of petition for review, I also
asked for the issuance of a TRO to enjoin the enforcement
of the decision of the VA, which I know will become final
and executory within 10 calendar days.
JMM: The CA did not issue a TRO. I was afraid the VA
would execute the decision.
Remedy: I filed a motion to resolve the petition for
review because time is of the essence.
This time, the CA found merit and set aside the decision
of the VA. So the person aggrieved is no longer the
employer. This time, it's the certified bargaining union.
Remedy: So the union brought up the case to the SC
under Rule 45 of the ROC after their MR was denied by
the CA.
JMM: In the SC, there were so many issues that were
brought up including the procedure of bringing up the
decision from the VA to the CA.
The rest is history.
Assignment: Again, find that SC case and see how the
SC ruled in that regard. The case was the summary of the
procedural guidelines of VA.
If it is the LA conducting voluntary arbitration, he will have
to be governed by the revised procedural guidelines in the
conduct of VA proceedings NOT the NLRC Rules because
he is designated as a VA.
But if he were to act in his capacity as LA then apply the
NLRC Rules of procedure as amended.
Quite Notable Provision in the Guidelines:
Motion for Reconsideration. The decision of the VA is
not subject to a motion for reconsideration.

TN: This provision has been rendered VOID by the SC in

JURISDICTION OF THE VA one labor case. Find the case!

JMM: While it is true that under the LC, there are 2 items
that fall within the original and exclusive jurisdiction of the
VA but if you look at the Procedural guidelines, THERE
ARE OTHER CASES that the VA may try, hear and decide.
1. All wage distortion issues from the application
of wage orders in organized establishments
2. All unresolved grievances arising from the
interpretation and implementation of the
productivity incentive programs under RA
6971
Why?
A: The principle of exhaustion of administrative remedies
equally applies to the proceedings before the VA. A MR is
considered a plain, speedy and adequate remedy in the
ordinary course of law. So the parties should not be
prevented from filing an MR with the VA notwithstanding
the expressed prohibition because such has already been
declared void by the SC.

How is that so?

A: because it’s the law that says so; that these issues
must be referred to VA.
What law?

"#$%&'$()*'$+,-%./%,.#$0$1&'$2)*'$3)%,.#)4,5)%,.#$67%$

"#$%&'$8/.+97%,:,%;$,#7'#%,:'$8/.*/)<-$9#+'/$36$=>?@$0$

1&'$A/.+97%,:,%;$B#7'#%,:'$67%$

JMM: The other details and procedures are quite

explanatory (referring to the guidelines). As I’ve said, the
power of the VA is quite similar to the power and authority
of the LA. Caveat, not exactly similar.

If the LA is the one designated as the VA that is valid.

__________________________________________________________________________________________________
Module 9 - 11 Transcript l Labor Relations l Atty. JMM l Taucan, Evengelista, Alonzo (TEA)