LABOR RELATIONS

Article 218 [211] Declaration of policy. A. It is the policy of the State:

(a) To promote and emphasize the primacy of free collective bargaining and negotiations, including
voluntary arbitration, mediation and conciliation, as modes of setting labor or industrial disputes;
(b) To promote free trade unionism as an instrument for the enhancement of democracy and the
promotion of social justice and development;
(c) To foster the free and voluntary organization of a strong and united labor movement;
(d) To promote the enlightenment of workers concerning their rights and obligations as union members
and as employees;
(e) To provide an adequate administrative machinery for the expeditious settlement of labor or industrial
disputes;
(f) To ensure a stable but dynamic and just industrial peace; and
(g) To ensure the participation of workers in decision and policy-making processes affecting their rights,
duties and welfare.
B. To encourage a truly democratic method of regulating the relations between the employers and
employees by means of agreements freely entered into through collective bargaining, no court or
administrative agency or official shall have the power to set or fix wages, rates of pay, hours of work or
other terms and conditions of employment, except as otherwise provided under this Code.
Non-interference of non-parties in collective bargaining
No court or administrative agency or official shall have the power to set or fix wages, rates of
pay, or other terms and conditions of employment, except as otherwise provided under the Labor Code,
the purpose of which is to encourage a truly democtratic method of regulating the relations between the
employers and employees by means of agreements freely entered into through collective bargaining.
Exceptions:
a. National Wages and Productivity Commission and Regional Tripartite Wages and Productivity
Board – as to wage fixing
b. National Conciliation and Mediation Board and the National Labor Relations Commission – as to
wage distortions
c. Secretary of Labor, and President of the Philippines – as to certification and assumption powers
over labor disputes.
Article 212. Definitions.
(a) “Commission” means the National Labor Relations Commission or any of its divisions, as the case
may be, as provided under this Code.
(b) “Bureau” means the Bureau of Labor Relations and/or the Labor Relations Divisions in the regional
offices established under Presidential Decree No. 1, in the Department of Labor.
(c) “Board” means the National Conciliation and Mediation Board established under Executive Order No.
126.
(d) “Council” means the Tripartite Voluntary Arbitration Advisory Council established under Executive
Order No. 126, as amended.
(e) “Employer” includes any person acting in the interest of an employer, directly or indirectly. The term
shall not include any labor organization or any of its officers or agents except when acting as employer.
(f) “Employee” includes any person in the employ of an employer. The term shall not be limited to the
employees of a particular employer, unless this Code so explicitly states. It shall include any individual
whose work has ceased as a result of or in connection with any current labor dispute or because of any
unfair labor practice if he has not obtained any other substantially equivalent and regular employment
(g) “Labor organization” means any union or association of employees which exists in whole or in part
for the purpose of collective bargaining or of dealing with employers concerning terms and conditions of
employment.
(h) “Legitimate labor organization” means any labor organization duly registered with the Department of
Labor and Employment, and includes any branch or local thereof.
(i) “Company union” means any labor organization whose formation, function or administration has been
assisted by any act defined as unfair labor practice by this Code.
(j) “Bargaining representative” means a legitimate labor organization or any officer or agent of such
organization whether or not employed by the employer.
(k) “Unfair labor practice” means any unfair labor practice as expressly defined by this Code.
(l) “Labor dispute” includes any controversy or matter concerning terms or conditions of employment or
the association or representation of persons in negotiating, fixing, maintaining, changing or arranging the
terms and conditions of employment, regardless of whether the disputants stand in the proximate relation
of employer and employee.
(m) “Managerial employee” is one who is vested with powers or prerogatives to lay down and execute
management policies and/or to hire, transfer, suspend, lay-off, recall, discharge, assign or discipline
employees. Supervisory employees are those who, in the interest of the employer, effectively recommend
such managerial actions if the exercise of such authority is not merely routinary or clerical in nature but
requires the use of independent judgment. All employees not falling within any of the above definitions
are considered rank-and-file employees for purposes of this Book.
(n) “Voluntary Arbitrator” means any person accredited by the Board as such, or any person named or
designated in the collective bargaining agreement by the parties to act as their voluntary arbitrator, or one
chosen, with or without the assistance of the National Conciliation and Mediation Board, pursuant to a
selection procedure agreed upon in the collective bargaining agreement, or any official that may be
authorized by the Secretary of Labor and Employment to act as voluntary arbitrator upon the written
request and agreement of the parties to a labor dispute.
(o) “Strike” means any temporary stoppage of work by the concerted action of employees as a result of an
industrial or labor dispute.
(p) “Lockout” means the temporary refusal of an employer to furnish work as a result of an industrial or
labor dispute.
(q) “Internal union dispute” includes all disputes or grievances arising from any violation of or
disagreement over any provision of the constitution and by-laws of a union, including any violation of the
rights and conditions of union membership provided for in this Code.
(r) “Strike breaker” means any person who obstructs, impedes, or interferes with by force, violence,
coersion, threats or intimidation any peaceful picketing by employees during any labor controversy
affecting wages, hours or conditions of work or in the exercise of the right of self-organization or
collective bargaining.
(s) “Strike area” means the establishment, warehouses, depots, plants or offices, including the sites or
premises used as run-away shops, of the employer struck against, as well as the immediate vicinity
actually used by picketing strikers in moving to and fro before all points of entrance to and exit from said
establishment. (As amended by RA 6715)
Types of employees
A. Managerial employee - one who is vested with powers or prerogatives to lay down and execute
management policies and/or to hire, transfer, suspend, lay-off, recall, discharge, assign or
discipline employees.
B. Supervisory employees - those who, in the interest of the employer, effectively recommend such
managerial actions if the exercise of such authority is not merely routinary or clerical in nature
but requires the use of independent judgment.
C. Rank-and-file employees - all employees not falling within any of the above definitions are
considered rank-and-file employees.
What if the recommendatory powers are subject to evaluation, review and final action by the department
heads and other higher executives of the company?
The recommendatory powers, although present, are not effective and not an exercise of independent
judgment as required by law. As such, he is considered as a –rank-and-file employee.
Because of business manipulations, there are those who may be appointed as “paper or dummy”
managers. Under the foregoing definition, they are still considered as rank-and-file employees, although
they carry high sounding titles. What is controlling is the actual exercise of functions and not the name
given to the positions.
NATIONAL LABOR RELATIONS COMMISSION
Is the NLRC under the supervision and control of the DOLE?
NO. The NLRC is attached to the DOLE for program and policy coordination only. Thus, the NLRC is
autonomous.
Trisectoral Composition/Tripartism:
- 8 members from the workers organizations
- 8 members from the employers organizations
- The Chairman and 7 remaining members shall come from the public sector, with the latter to be
chosen preferably from among the incumbent labor arbiters.
NLRC sitting en banc or in divisions.
The Commission may sit en banc or in 8 divisions, each composed of 3 members.
The Commission shall sit en banc only for purposes of promulgating rules and regulations governing
the hearing and disposition of cases before any of its divisions and regional branches and formulating
policies affecting its administration and operations.
The Commission shall exercise its adjudicatory and all other powers, functions, and duties through its
divisions.
The divisions of the Commission shall have exclusive appellate jurisdiction over cases within their
respective territorial jurisdiction.
The conclusions of a division on any case submitted to it for decision shall be reached in consultation
before the case is assigned to a member for the writing of the opinion. The purpose of the law in
requiring consultation is to preclude any belief that certain decisions of the Commission are one-man
decisions to which other members only affix their signatures signifying their concurrence.
Pronouncement of judgment.
The concurrence of 2 Commissioners of a division shall be necessary for the pronouncement of a
judgment or resolution. Whenever the required membership in a division is not complete and the
concurrence of 2 Commissioners to arrive at a judgment or resolution cannot be obtained, the
Chairman shall designate such number of additional Commissioners from the other divisions as may
be necessary.
The law vests upon the NLRC Chairman to effect temporary assignments if the required concurrence
is not met. Thus, a Commission from the first division can be temporarily assigned to the second or
third division to fill the gap or vice versa. The territorial divisions do not confer exclusive
jurisdictional to each division and are merely designed for administrative efficiency.
Headquarters of the NLRC
a. Metropolitan Manila – First, Second, Third, Fourth, Fifth and Sixth Divisions
b. Cebu City – Seventh Division
c. Cagayan de Oro City – Eighth Division
Regional branches of the NLRC
The Commission shall establish as many regional arbitration branches as there are regional offices of the
DOLE, sub-regional branches or provincial units. Each regional arbitration branch is headed by an
Executive Labor Arbiter. All cases in which the Labor Arbiter have jurisdiction may be filed with the
Regional Arbitration Branch which has territorial jurisdiction over the workplace of the complainant.
Qualifications of Chairman and the Commissioners
a. Must be a member of the Philippine Bar
b. Must have been engaged in the practice of law in the Philippines for at least 15 years
c. Must have experience or exposure in handling labor management relations for at least 5 years;
and
d. Preferably a resident of the region where he is to hold office.
Qualifications of Labor Arbiters:
a. Must be a member of the Philippine Bar
b. Must have been engaged in the practice of law in the Philippines for at least 10 years,
c. Must have experience or exposure in handling labor management relations for at least 5 years.
Term of Office.
The NLRC Commissioners and Labor Arbiters shall hold office during good behavior until they
reach the age of 65 years, unless sooner removed for cause or become incapacitated to discharge the
duties of their office. However, the President of the Philippines may extend the services of the
Commissioners and Labor Arbiters up to the maximum age of 70 years upon the recommendation of the
Commission en banc.
Good behavior is the conduct authorized by law. Mere mistakes or errors of judgment are not a
breach of good behavior within the meaning of the Constitution to justify expulsion or removal from
office.
Confirmation of appointment not needed.
Article 221 of the Labor Code requiring the Commission on Appointments to confirm the
appointment of NLRC Chairman and Commissioners has been declared unconstitutional for the
Constitution does not expressly provide for the confirmation of heads of bureaus or commissioners.
(Sarmiento III v. Com. Mison, 156 SCRA 459)
Declaration of NLRC positions vacant, unconstitutional.
Section 35 of RA 6715, which declares all positions of the Commissioners, Executive Labor
Arbiters and Labor Arbiters vacant and which operates to remove said incumbents upon the appointment
and qualifications of their successors, has been declared unconstitutional on the ground that they are
covered by the protective mantle of the security of tenure clause of the Constitution.
Salaries, benefits and other emoluments.
The Chairman and members of the Commission shall have the same rank, receive an annual
salary equivalent to, and be entitled to the same allowances, retirement and benefits as those of the
Presiding Justice and Associate Justices of the Court of Appeals, respectively.
The Labor Arbiters shall have the same rank, receive an annual salary equivalent to and be
entitled to the same allowances, retirement and other benefits as those of the judges of the Regional Trial
Courts.
Jurisdiction of Labor Arbiters and the Commission.
The Labor Arbiters shall have original and exclusive jurisdiction to hear and decide, within thirty (30)
calendar days after the submission of the case by the parties for decision without extension, even in the
absence of stenographic notes, the following cases involving all workers, whether agricultural or non-
agricultural:
1. Unfair labor practice cases;
2. Termination disputes;
3. If accompanied with a claim for reinstatement, those cases that workers may file involving
wages, rate of pay, hours of work and other terms and conditions of employment;
4. Claims for actual, moral, exemplary and other forms of damages arising from the employer-
employee relations;
5. Cases arising from any violation of Article 279 (Prohibited Activities) of this Code, including
questions involving the legality of strikes and lockouts; and
6. Except claims for employees compensation, social security, medicare and maternity benefits, all
other claims arising from employer-employee relations, including those of persons in domestic or
household service, involving an amount exceeding five thousand pesos (P5,000.00), whether or
not accompanied with a claim for reinstatement.
The Commission shall have exclusive appellate jurisdiction over all cases decided by Labor Arbiters.
The Labor Arbiter has jurisdiction over controversies involving employers and employees only if there is
a “reasonable causal connection” between the claim asserted and the employer-employee relations.
Absent such a link, the complaint is cognizable by the regular court in the exercise of its civil and
criminal jurisdiction.
Thus, a claim for a house-and-lot prize for being the top sales man unquestionably arose from an
employer-employee relationship and, therefore, falls within the coverage of Article 223 of the Labor
Code. The salesman would not have qualified for the contest, much less won the prize, if he was not an
employee of the company at the time of the holding of the contest. (Pepsi cola v. Martinez, 112 SCRA
578)
What is an unfair labor practice?
An unfair labor practice is an act of an employer or the union – or their agents, that violates the
constitutional right of workers to self-organization, which includes the right to form a union, to take part
in its formation, to join or assist a union of their own choosing for purposes of collective bargaining and
negotiations, and to engage in concerted activities for mutual help and protection.
The civil aspects of all cases involving unfair labor practices shall be under the jurisdiction of the Labor
Arbiter. The criminal aspect is not cognizable by the Labor Arbiter. Note that a criminal case of an unfair
labor practice cannot be instituted until and unless the Labor Arbiter has decided on the administrative
and civil aspects of an unfair labor practice.
XPNs:
The President or the Secretary of Labor is not precluded from exercising jurisdiction over an
unfair labor practice which may cause a strike or lockout in an industry indispensable to the
national interest. (Pre-emptive power and compulsive arbitration power of the Secretary of Labor
under Section 278(g) of the Labor Code)
The parties can enter into an agreement to submit an unfair labor practice dispute for resolution
by the voluntary arbitrator
Jurisdiction of the Grievance Machinery and Voluntary Arbitrators
a. Cases arising from the interpretation or implementation of CBAs
b. Cases arising from the interpretation or enforcement of company personnel policies.
** If these cases are filed with the Labor Arbiter, he shall refer the same to the grievance
machinery and voluntary arbitration
Gross violations of the CBA
Ordinarily, CBA violations are mere grievances subject to grievance machinery and voluntary
arbitration procedures. For it to fall within the jurisdiction of the Labor Arbiter, the complaint must show
prima facie the concurrence of 2 things: (i) gross violation of the CBA; and (ii) the violation pertains to
the economic provisions of the CBA. If these 2 requisites concur, the gross violations are considered as
unfair labor practice.
Termination disputes.
Termination – dismissal or lay-off.
Dismissal – termination of an employee at the instance of the employer
Lay-off – termination initiated by the employer without prejudice to recall or rehiring of a worker who
has been temporarily separated from the service.
Termination or illegal dismissal cases are under the exclusive and original jurisdiction of the Labor
Arbiter.
Termination of a corporate officer, which is an intra-corporate matter, is cognizable by the RTC.
Termination cases arising from the interpretation and implementation of the CBA are cognizable by the
voluntary arbitrators.
Money claim with a claim for reinstatement.
The labor arbiter has original and exclusive jurisdiction over cases that workers may file involving wagse,
rates of pay, hours of work and other terms and conditions of employment, if accompanied with a claim
for reinstatement.
Money claim exceeding P5,000.00
If the money claim does not exceed P5,000.00, the case falls within the jurisdiction of the DLOE
Regional Director. If it exceeds such jurisdictional amount, the Labor Arbiter has jurisdiction. Thus, the
DOLE Regional Director is without jurisdiction to order the payment of the employee’s claims for salary
differentials and 13th month pay.
Claim for damages.
The grant of jurisdiction to the Labor Arbiter is sufficiently comprehensive to include claims for moral
and exemplary damages sought to be recovered from an employer by an employee upon the theory of his
illegal dismissal. It also includes other forms of damages under the Civil Code.
When is moral damages recoverable? Moral damages may be recovered when the dismissal of the
employee was not only effected without authorized cause or due process for which relief is granted by the
Labor Code but was attended by bad faith or fraud or constituted an act oppressive to labor or was done in
a manner contrary to morals, good customs or public policy.
When is exemplary damages recoverable? Exemplary damages may be decreed when moral damages are
awarded, especially to an illegally dismissed employee whose dismissal was tainted with unfair labor
practice.
Violation of Article 279.
Article 279 prohibit certain activities which are related to strikes, picketing and lockouts. Cases
arising from the violation of such prohibited activities are cognizable by the Labor Arbiter. Also,
questions involving the legality of strikes and lockouts are within the jurisdiction of the Labor Arbiter.
Cases involving OFWs
The Labor Arbiters shall have exclusive original jurisdiction to hear and decide the claims arising out of
an employer-employee relationship or by virtue of any law or contract involving Filipino workers for
overseas deployment including claims for actual, moral, exemplary and other forms of damages.
If the seafarer had already signed a POEA-approved contract, but was not deployed overseas by the
employer, such contract created certain rights and obligations, the breach of which may give rise to a
cause of action against the erring party. Likewise, if the seafarer failed or refused to be deployed as
agreed upon, he could have been liable for damages. (Santiago v. CF Sharp Crew Mgt., Inc. G.R. 162419,
10 July 2007)
Cases involving GOCCs without original charters.
Employees of GOCCs without original charters, i.e. subsidiaries or corporate offsprings, are governed by
the Labor Code. Apply the manner of creation test.
Jurisdiction on issue of deduction for tax purposes.
The issue of deduction for tax purposes is a money claim arising from the employer-employee
relationship which clearly falls within the jurisdiction of the Labor Arbiter and the NLRC (Santos v.
Servier Phils., 572 SCRA 487).
Jurisdiction on Social Security contributions.
The matter of Social Security contributions necessarily flowed from employer-employee relationship
between the parties; thus, petitioner’s claims should be referred to the labor tribunals (Amecos
Innovations v. Lopez, GR 178055, 2 July 2014).
Cases not cognizable by the Labor Arbiter.
a. The aggregate money claim of the employee does not exceed P5,000 and without claim for reinstatement
b. Claims for employee’s compensation, social security, PhilHealth and maternity benefits
c. Claim for cash prize under the Innovation Program of the company although arising out of employer-
employee relationship, is one requiring application of general civil law on contracts which is within the
jurisdiction of the regular courts (San Miguel Corp. v. NLRC, 161 SCRA 719)
d. Claim for liquidation damages for breach of “non-compete” clause in a contract within 2 years from
employee’s resignation. This is a post-employment dispute cognizable by the regular courts. (Yusen Air v.
Villamor, GR 154060)
e. Cause of action is based on quasi-delict or tort which has no reasonable connection with any of the claims
enumerated in Article 224 of the Labor Code
f. Intra-corporate controversies involving the election or appointment of directors, trustees, officers or
managers of such corporation, partnerships or associations shall be within the original and exclusive
jurisdiction of the RTC. (The Corporation Code mentions only the following corporate officers, to wit:
president, secretary and treasurer, and such other officers as may be provided for in the by-laws). The status
of an employee as director and stockholder does not automatically convert his dismissal into an intra-
corporate dispute under the nature of the controversy test (Cosave v. Broadcom Asia, GR 201298)
g. The DOLE, Labor Arbiters and the NLRC may not legally act on labor claims of employees after an Order
was issued suspending all actions against a company under rehabilitation receivership by a management
committee so created by the SEC
 h. The Labor Arbiter has no jurisdiction over an illegal dismissal case filed against a local water district which
is a quasi-public corporation. The dismissal is governed by the civil service law.
i. Cases involving GOCCs with original charters are governed by the law creating them, usually the Civil
Service Law.
j. Cases arising from unresolved grievances arising from the interpretation and implementation of the CBA
and company personnel policies. These are under the jurisdiction of the voluntary arbitrators.
k. Labor Arbiters cannot take cognizance of a complaint for illegal dismissal and violation of labor-only
contracting law against the Asian Development bank, for the latter enjoys immunity from legal process of
every form.
If the functions of the foreign entity immune from suit partake of the nature of a proprietary activity, such
as the restaurant services offered at John Hay Air Station undertaken by the US Government as a
commercial activity for profit and not in its governmental capacity, the case for illegal dismissal filed by a
Filipino cook working therein is well within the jurisdiction of Philippine courts. By entering into the
employment contract with the cook in the discharge of its proprietary functions, it impliedly divested itself
of its sovereign immunity from suits. (US v. Rodrigo, GR 79470)
l. The Labor Arbiter does not have injunctive power in labor disputes involving strikes or lockouts. It is the
primary jurisdiction of the NLRC.

Powers of the National Labor Relations Commission.

a. Rule-making power
b. Power to issue compulsory processes
c. Power to conduct investigation and hear disputes or controversy within its jurisdiction
d. Power to hold any person in contempt
e. Power to issue injunctions and restraining orders
Rule-making power (Power of subordinate legislation or quasi-legislative power).
The Commission has the power to promulgate rules and regulations:
 governing the hearing and disposition of cases before it and its regional branches
 pertaining to its internal functions
 as may be necessary to carry put the purposes of this Code
Power to issue compulsory processes (Investigatory or inquisitorial power).
The Commission has the power to:
 administer oaths
 summon parties
 issue subpoenas ad testificandum and duces tecum
Power to conduct investigation and hear disputes or controversy within its jurisdiction
The Commission has the power to:
 conduct investigations for the determination of a question, matter or controversy within its
jurisdiction
 proceed to hear and determine the disputes in the manner laid down in par. (c) of Article 225.
Power to hold any person in contempt
The NLRC has the power to hold any person in contempt directly or indirectly and impose appropriate
penalties for acts that tend to obstruct or hinder the exercise of its powers and functions.
Direct contempt:
 Misbehavior in the presence of or so near the Chairman or any member of the Commission or any
Labor Arbiter that obstructs or interrupts the proceedings before them
 Disrespect towards the Chairman, its members or any Labor Arbiter
 Offensive personalities towards others
 Refusal to be sworn or to answer as a witness or to subscribe an affidavit or deposition when
lawfully required to do so.
Indirect contempt (Rule 71 of the Rules of Court):
 Disobedience of or resistance to a lawful writ, process, order or judgment
 Failure to obey subpoena
 Basahin mo na lang. nakakatamad magtype
Procedure in direct contempt:
The person summarily adjudged (without a hearing) of direct contempt by a Labor Arbiter may appeal to
the NLRC and the execution of the judgment shall be suspended pending resolution of the appeal upon
the filing of such person of a bond on condition that he will abide by and perform the judgment of the
Commission should the appeal be decided against him.
Judgment of the NLRC on direct contempt is immediately executory and inappealable.
Power to issue injunctions and restraining orders
The NLRC has the power to issue an injunction in ordinary labor disputes, that is, those not involving
strikes or lockouts. Labor Arbiters may also exercise injunctive power as an ancillary relief to cases not
involving strike or lockout pending before them.
As an extraordinary coercive measure, injunction is treated as the strong arm of equity or a transcendent
remedy to be used cautiously for it affects gravely the respective rights of the parties and the same shall
be issued only upon extreme necessity.
What is the objective of a writ of preliminary injunction?
The sole objective is to preserve the status quo until the merits of the case are fully heard. Status quo is
the last actual peaceful uncontested situation that precedes a controversy.
Requisites of a valid injunction:
a) Prohibited or unlawful acts have been threatened and will be committed unless restrained
b) Substantial and irreparable injury to complainant’s property will follow
c) Greater injury will be inflicted upon the complainant by a denial of the relief than will be inflicted
upon the defendant by granting the relief
d) Complainant has no adequate remedy at law
e) The public officers charged with the duty to protect complainant’s property are unwilling to
furnish adequate protection
f) Due process of law must be observed, i.e. a hearing must be conducted
Hearing requirement; injunction issued de parte.
In order that injunction may be properly issued, the law requires that there should be a hearing at which
parties should be given an opportunity to present witnesses in support of the complaint and of the
opposition, if any, with opportunity for cross-examination, and that the other conditions required for the
granting of the relief must be established and stated in the Order. The requirement is jurisdictional, such
that, if not followed, it may result in the annulment of the proceedings.
In other words, there cannot be any ex parte grant of an injunction in cases involving a labor dispute.
Power to issue TRO; TRO issued ex parte
A restraining order is not an injunction at all but a writ to compel the parties to maintain the status quo
until the questions of whether or not a temporary or preliminary injunction ought to be issued may be
determined.
In other words, a TRO is an interlocutory order which contemplates further hearing for the application of
a temporary injunction upon notice to the adverse party. It is a status quo order.
Requirements for the issuance of a TRO:
a) The complainant alleges that, unless a TRO is issued without notice, a substantial and irreparable
injury to complainant’s property will be unavoidable
b) The testimony under oath of the complainant is sufficient, if sustained, to justify the NLRC in
issuing a temporary injunction
c) Such TRO shall be effective for not longer than 20 days and shall be void at the expiration of
said period
d) Complainant shall file an undertaking with adequate security (bond) in an amount to be fixed by
the NLRC
e) A hearing must be conducted where the sworn testimony of the applicant should be received.
Thus, a TRO may be issued ex parte. A writ of preliminary injunction is issued de parte. The objective of
a TRO is to maintain the status quo until the questions of whether or not a temporary or preliminary
injunction ought to be issued. The objective of a writ of preliminary injunction is to preserve the status
quo until the merits of the case are fully heard.
Therefore, there is no merit in the contention that the restraining order is illegal because petitioner had no
notice of the hearing.
Reminders:
The reception of evidence for the application of a writ of injunction may be delegated by the Commission
to any of its Labor Arbiters who shall conduct such hearings in such places as he may determine to be
accessible to the parties and their witnesses and shall submit thereafter his recommendation to the
Commission for its consideration and resolution. Note that what is delegated is merely the reception of
evidence for the application of a writ of injunction. The power to issue a writ of injunction lies with the
NLRC.
Note that an ex parte restraining order may be issued by the NLRC, or its Chairman or Vice Chairman
where the Commission is not in session.
Is a writ of injunction required where the Secretary of Labor exercises its assumption power? Is the writ
required where the Secretary certifies the labor dispute to the Commission for compulsory arbitration?
NO. When, in his opinion, there exists a labor dispute causing or likely to cause a strike or lockout in an
industry indispensable to the national interest, the Secretary of Labor may assume jurisdiction and decide
it, or certify the same to the NLRC for compulsory arbitration. Such assumption or certification has the
effect of automatically enjoining the intended or impending strike or lockout.
 Original Jurisdiction of the NLRC
Cases certified to it for compulsory arbitration by
the President or the Secretary of Labor pursuant to
Arts. 278 (Strikes, Picketing and Lockouts) and
279 (Prohibited Activities) of the LC
Cases of injunction pursuant to Arts. 225 (re:
ordinary labor disputes) and 279 (Prohibited
Activities) of the LC
Appellate Jurisdiction of the NLRC
Cases decided by the DOLE Regional Directors in
the exercise of its adjudicatory function pursuant
to Art 129 (Money claims not exceeding P5,000
and without a claim for reinstatement) of the LC
Cases decided by the Labor Arbiters pursuant to
Art. 224(b) of the LC
- ULP cases;
- Termination disputes;
- Money claim with a claim for
reinstatement;
- Claims for damages arising from the
employer-employee relations;
- Cases arising from any violation of
Article 279 (Prohibited Activities) of this
Code, including questions involving the
legality of strikes and lockouts; and
- Money claims exceeding P5,000 with or
without claim for reinstatement.

Cases decided by the Labor Arbiters pursuant to

Contempt cases pursuant to Art. 225 of the LC
Sec. 10 of RA 8042 (Migrant Workers and
Overseas Filipino Act)
Cases decided by the Labor Arbiter pursuant to
Art. 124 of the LC on wage distortion problem in
non-unionized establishment
Cases certified by the Regional Director under
Art. 128(b) of the LC

Ocular inspection.
The Chairman, any Commissioner, Labor Arbiter or their duly authorized representatives may at any time
during working hours:
a. conduct an ocular inspection on any establishment, building, ship or vessel, place or premises,
including any work, material, implement, machinery, appliance or any object therein, and
b. ask any employee, laborer or any person as the case may be for any information or data
concerning any matter or question relative to the object of the investigation.
Technical rules not binding and prior resort to amicable settlement.
Doctrine of speedy labor justice; principle of emancipation of labor relations.
Rules of procedure and evidence in courts of law or equity shall not control labor proceedings. It is well-
settled that the application of technical rules of procedure and evidence may be relaxed in labor cases to
serve the demands of substantial justice.
Rules of procedure are mere tools designed to facilitate the attainment of justice, and their strict and rigid
application which would result in technicalities that tend to frustrate rather than promote substantial
justice must always be avoided.
Thus, failure by the employee to specifically pray for the relief of reinstatement in a complaint is a
procedural lapse which cannot put to naught a right which he is entitled under a substantive law.
Likewise, the employee’s claim for moral damages and attorney’s fees set out in the position paper,
should not be denied on the mere ground that the employee failed to aver the same in her complaint, as in
labor cases, the rules of procedure ought not to be applied in a very rigid and technical sense. Substantive
rights like reinstatement and backwages resulting from dismissal must not be prejudiced by a rigid and
technical application of the rules.
The NLRC is not precluded from receiving evidence, even for the first time on appeal, because technical
rules of procedure are not binding in labor cases.
However, a change of theory on appeal is improper, offensive to the basic rules of fair play and justice
and violative of due process of law.
Position paper proceeding allowed; not violative of due process
A trial is discretionary on the labor arbiter, and is something that the parties cannot demand as a matter of
right.
Labor cases can be decided on the basis of position papers and other documents submitted by the
contending parties without resorting to the technical rules of evidence observed in the court of justice.
Such a procedure substantially complies with the requirements of due process. Submission of position
papers without a hearing is not violative of due process, provided the parties are given the opportunity to
be heard and present their case.
Thus, the argument that the affidavit is hearsay because the affiants were not presented for cross-
examination is not persuasive because the rules of evidence are not strictly observed in proceedings
before the NLRC where decisions may be reached on the basis of position papers only.
Likewise, the failure to submit position paper on time is not one of the grounds for the dismissal of a
complaint in labor cases.
Lack of verification not fatal
The lack of verification of the position paper-affidavit is a formal defect, rather than a substantial defect.
It is not fatal to the case. It could be easily corrected by requiring an oath.
Principle of res judicata may not be invoked in labor cases
The principle of res judicata may not be invoked in labor relations proceedings as labor proceedings are
“non-litigious and summary in nature without regard to legal technicalities obtaining in courts of law.”
Said pronouncement is in consonance with the jurisprudential dictum that the doctrine of res judicata
applies only to judicial or quasi-judicial proceedings and not to the exercise of administrative powers.
Service of summons
Service of summons is a very vital and indispensable ingredient of sue process. Notice to enable the other
party to be heard and to present evidence is not a mere technicality or a trivial matter in any
administrative or judicial proceedings.
Appearances and fees.
(a) Non-lawyers may appear before the Commissioner or any Labor Arbiter only:
1. If they represent themselves; or
2. If they represent their organization or members thereof.
3. If he is a duly-accredited member of the legal aid office recognized by the DOJ or IBP in cases referred
thereto by the latter.
Attorney’s fees for negotiating CBA
The law prohibits the payment of attorney’s fees only when it is effected through forced contributions
from the individual members of the contracting union. The obligation to pay the attorney’s fees belong to
the union and cannot be shunted to the workers as their direct responsibility. The guarantee is intended to
protect the employee from unwarranted practices that would diminish his compensation without his
knowledge and consent.
The lawyer is entitled to the payment of his fees to be charged against the union funds. It is settled that
the 10% attorney’s fees shall be paid to him on the total benefits secured after the CBA negotiations.
Collection of special assessment prohibited
The collection of the special assessment, for the payment of services rendered by union officers,
consultants and others, is a form of an exaction which falls under the category of a “similar charge” and
therefore prohibited under the law.
It must be noted that under Article 247, Union’s special assessment for incidental expenses, attorney’s
fees and representation expenses is valid upon the concurrence of 3 conditions:
a. authorization by a written resolution of the majority of all the members at the general
membership meeting which was called for that purpose
b. minutes of the meeting duly recorded by the secretary
c. written authorization for check-off duly signed by each employee
APPEAL (Labor Arbiter to NLRC)
Grounds for Appeal:
a) If there is prima facie evidence of abuse of discretion on the part of the Labor Arbiter;
b) If the decision, order or award was secured through fraud or coercion, including graft and
corruption;
c) If made purely on questions of law; and
d) If serious errors in the findings of facts are raised which would cause grave or irreparable damage
or injury to the appellant.
Period of appeal.
Decisions, awards, or orders of the Labor arbiter are final and executory unless appealed to the NLRC by
any or both parties within 10 calendar days from receipt of such decisions, awards or orders. Note
that the 10-day period refers to calendar days and not working days!
Where the 10th day is a Saturday, Sunday or legal holiday and the government office concerned is closed
on such a day, in which event, the appeal can be filed on the next business day.
Service of notice, pleadings, orders and the like, should be made on the party, if not represented by
counsel. When a party is represented by counsel, notice should be made upon the counsel of records.
The perfection of an appeal in the manner and within the period prescribed by law is not only mandatory
but jurisdictional, and failure to perfect an appeal has the effect of rendering the judgment final and
executory, it is equally settled that the NLRC may disregard the procedural lapse where there is an
acceptable reason to excuse tardiness in the taking of an appeal.
The following are the exceptions to compliance with appeal period:
a. The delay in the perfection of an appeal was only 1 day which was caused by excusable
negligence
b. The higher interest of substantial justice demands the relaxation of the rule to prevent miscarriage
of justice or of unjust enrichment.
c. Due to special circumstances of the case with its attendant legal merits
d. With due consideration of the amount and the issue involved in the case.
***Anlabo ng mga to. Bahala ka na umintindi.
Doctrine of immutability of final judgment.
Once the judgment has become final and executory, it may no longer be modified in any respect, even if
the modification is meant to correct what is perceived to be an erroneous conclusion of fact or law, and
regardless of whether the modification is attempted to be made by the arbiter rendering it or by the
highest court of the land, as what remains to be done is the purely ministerial enforcement or execution of
the judgment.
XPN: Recomputation (or an original computation, if no computation has been made). By the nature of
illegal dismissal, reliefs continue to add up until full satisfaction as provided under the LC. The
recomputation (by motion) of the consequences of illegal dismissal upon execution of the decision does
not constitute an alteration or amendment of the final decision being implemented The illegal dismissal
ruling stands; only the computation of monetary consequences of such dismissal is affected, and this is
not a violation of the doctrine of immutability of final judgments.
Motion for reconsideration treated as an appeal.
The only remedy which the losing party can avail of from the decision of the Labor Arbiter is to appeal to
the NLRC, as no motion for reconsideration or petition for relief from judgment under the law may be
entertained by the Labor Arbiter, and whenever a motion for reconsideration is filed, it will be properly
treated as an appeal.
Requirements for perfection of appeal.
a. Appeal shall be filed within the reglementary period;
b. Verified by the appellant;
c. Appeal must be in the form of a memorandum of appeal which shall state the grounds relied
upon and the arguments in support thereof, the relief prayed for, and with statement of the date
the appellant received the appealed decision, award or order;
d. In 3 legibly typewritten or printed copies; and
e. Accompanied by:
 proof of payment of the required appealed fee and legal research fee;
 posting of a cash or surety bond; and
 proof of service upon the parties.
Notice of appeal is not an appeal. What is required is the memorandum of appeal.
A mere notice of appeal does not constitute the appeal and shall not stop the running of the period for
perfecting an appeal. The appeal must be in the form of a memorandum of appeal which shall state the
grounds relied upon and the arguments in support thereof, the relief prayed for, and with statement of the
date the appellant received the appealed decision, award or order.
The appellant shall furnish a copy of the memorandum of appeal to the other party which shall file an
answer not later than 10 calendar days from receipt thereof. Note that the failure of a party to furnish a
copy of the appeal memorandum to the adverse party is not a fatal defect, under the principle of
technicality. The appeal should not be dismissed; however, it should not be given due course either.
The NLRC shall require the appellant to comply with the rule that the opposing party should be provided
with a copy of the appeal memorandum.
Motion for extension of time to file a record on appeal
The motion for extension of time to file a record on appeal may be made before the expiration of the
reglementary period for filing said record on appeal. If the order of the Commission granting the motion
is issued only after the expiration of the original period, the appeal may still be perfected within the
extended period. Likewise, the appeal is deemed perfected only after the approval of the record on appeal
and not upon the filing of said record on appeal.
Payment of an appeal, docket or filing fee.
Proof of payment of an appeal fee is by no means a mere technicality of law or procedure. It is an
essential requirement in the perfection of an appeal without which the decision appealed from would
become final and executory.
Posting of a bond, an indispensable requirement.
In case the decision of the Labor Arbiter involves a monetary award, an appeal by the employer may be
perfected only upon the posting of a bond equivalent in amount to the monetary award, exclusive of
damages and attorney’s fees. The bond shall be in the form of:
a cash deposit
surety bond
property bond
Instances when a bond is not required:
a. When the monetary award is not fixed in the judgment
b. Posting a bond is a requirement for perfecting an appeal of a Labor Arbiter’s decision involving a
monetary award but not for the purpose of resolving a motion for reconsideration filed with the
NRLC
c. In filing a petition for review on certiorari under Rule 65
What if the employer filed an appeal but failed to post a bond within the reglementary period. What is the
remedy of the employee? The remedy of the employee is to file a motion to dismiss the appeal and not a
petition for mandamus for the issuance of a writ of execution.
Magulo ang Supreme Court sa sufficiency ng appeal bond. Consider the following, bahala ka na din
umintindi:
a. An appeal bond in the amount of P725M which is equivalent to 25% of the monetary award is
sufficient to perfect an appeal. (Halite v. Ventures International, Inc.)
b. The appeal bond posted by the respondent in the amount of P100,000.00 which is equivalent to
around 20% of the total amount of monetary bond is sufficient to perfect an appeal
Motion to reduce bond.
A motion to reduce bond may be allowed provided the following conditions are complied with:
1. The motion should be filed within the reglementary period;
2. The motion to reduce bond should be based on meritorious grounds; and
3. The motion should be accompanied by a partial bond, the amount of which should be
reasonable in relation to the monetary awards.
Is the posting of an amount equivalent to 10% of the monetary award sufficient to perfect an appeal?
It depends. An amount equivalent to 10% of the monetary award is deemed sufficient to perfect an appeal
if the same is filed together with the motion to reduce bond. If an amount equivalent to 10% of the
monetary award is posted as an appeal bond, it is not sufficient in order to perfect an appeal.
Naintindihan mo? Ganito daw kasi yun. Pag magfafile ka ng motion to reduce bond, sabayan mo ng 10%
para makaperfect ka ng appeal. In any case, if the NLRC denies the motion to reduce bond, the appellant
is given a fresh period of 10 days from notice of the NLRC order within which to perfect the appeal by
posting the required appeal bond. Pag hindi ka nagfile ng motion to reduce bond at nagfile ka agad ng
appeal tapos nagpost ka ng 10% as appeal bond, hindi ka makakaperfect ng appeal. Nganga ka. Umuwi
ka na lang.
Filing or service of pleadings.
When pleadings are filed with the adjudicating body by registered mail, the date of mailing is considered
the date of filing, and it is of no consequence if the envelopes were tardily dispatched by the post office.
However, the transmission through a private carrier instead of the Philippine Post Office is not a
recognized mode of filing pleadings, and that therefore the date of delivery of pleadings to a private
letter-forwarding agency is not considered as the date of filing thereof in court, rather the date of actual
receipt by the court is deemed the date of filing of that pleading.
Service by registered mail is complete upon actual receipt by the addressee; but if he fails to claim his
mail from the post office within 5 days from the date of the first notice of the postmaster, service shall
take effect at the expiration of such time.
Labor Arbiter’s decision immediately executory as to reinstatement aspect
The decision of the Labor Arbiter reinstating a dismissed or separated employee, insofar as the
reinstatement aspect is concerned, shall immediately be executory, even pending appeal. He shall be
reinstated to the position held by him prior to his dismissal (actual reinstatement) or, at the option of the
employer, merely reinstated in the payroll (payroll reinstatement). The posting of a bond by the employer
shall not stay the reinstatement of the dismissed employee.
Reinstatement and payment of wages during appeal period if Labor Arbiter’s reinstatement order
reversed on appeal
If the employee is so reinstated pursuant to an order of reinstatement by the Labor Arbiter, and such order
is later reversed by the NLRC, the CA, or the SC, the employee is not required to reimburse whatever
salaries he has received for he is entitled to such, more so if he actually rendered services during said
period. (Garcia v. PAL or the Refund Doctrine; Genuino doctrine abandoned)
Reinstatement; options of the employer
a. Actual reinstatement
b. Payroll reinstatement
No appeal from the NLRC decision; St. Martin’s Ruling
There is no law providing for an appeal from decisions of the NLRC. When, however, it decides a case
without or in excess of its jurisdiction, or with grave abuse of discretion, the party thereby adversely
affected may obtain a review and nullification of that decision by the Court through a petition for
certiorari under Rule 65 to be initially filed with the CA under the doctrine of hierarchy of courts.
Before filing with the CA a petition for certiorari under Rule 65, the aggrieved party should first file a
motion for reconsideration of the order, resolution, or decision of the NLRC. The filing of a motion for
reconsideration is a condition sine qua non to the filing of a petition for certiorari under Rule 65. This is
in accordance with the Rules of Procedure and the doctrine of exhaustion of administrative remedies.
However, the requirement for a motion for reconsideration, as a condition for the filing of a petition for
certiorari, does not apply where the decision sought to be annulled is a nullity or the petition is
grounded on purely questions of law.
Appeal by certiorari (Rule 45) to the Supreme Court from decision of the Court of Appeals
The appeal from a final disposition of the CA is a petition for review on certiorari under Rule 45 and not a
special civil action of certiorari under Rule 65.
Rule 45 is clear that the decisions, final orders or resolutions of the CA in any case, regardless of the
nature of the action or proceeding involved therein may be appealed to the SC by filing a petition for
review, which is but a continuation of the appellate process over the original case. Under Rule 45, the
reglementary period to appeal is 15 days from notice of judgment or denial of the motion for
reconsideration.
Petition for certiorari (Rule 65) to the Supreme Court from decision of the Court of Appeals.
A petition for certiorari under Rule 65 may be filed
a. if in issuing the assailed decision and resolution, the Court of Appeals acted with grave abuse of
discretion, amounting to excess or lack of jurisdiction and
b. there is no plain, speedy and adequate remedy in the ordinary course of law.
Execution of decisions, orders or awards.
A writ of execution, otherwise known as a writ of fieri facias, may be issued by the following officials for
the final decisions, orders or awards promulgated by them:
a. Secretary of Labor and Employment
b. Regional Director,
c. NLRC
d. Labor Arbiter
e. Med-Arbiter
f. Voluntary arbitrator
g. Panel of voluntary arbitrators
The writ of execution may be issued motu proprio or on motion of any interested party within 5 years
from the date the judgment becomes final and executory.
The Secretary of Labor, and the Chairman of the NLRC may designate special sheriffs and take any
measure under existing laws to ensure compliance with their decisions, orders or awards and those of
Labor Arbiters and voluntary arbitrators or panel of voluntary arbitrators, including the imposition of
administrative fines.
Order of execution of a final and executory judgment not appealable
A judgment becomes final and executory by operation of law, not by judicial declaration. Accordingly,
finality of a judgment becomes a fact upon the lapse of the reglementary period of appeal if no appeal is
perfected. In such a situation, the prevailing party is entitled as a matter of right to a writ of execution;
and issuance thereof is compellable by mandamus. Thus, an order of execution is not appealable;
otherwise, there would be no end to a case.
It is settled that an Order of Execution is not appealable; however, it is subject to the following
exceptions:
a. Where the Order of Execution varies or goes beyond the terms of the judgment it seeks to enforce
b. Where the terms of the judgment are ambiguous and leave a room for doubt
c. Where the implementation of the Order was irregular.
*** In these cases, the aggrieved party can appeal from the Order of Execution.
Motion to quash a writ of execution
Grounds:
Where the writ has been improvidently issued
Where the writ has been issued not to the proper party
Where the judgment debt has already been fully paid
Where the writ has been issued without authority
Where there is change in the situation of the parties that makes the execution inequitable
Where there is irregularity in the issuance of the writ that makes it defective
Where to file motion for execution
A motion for execution should be filed within 5 years from the date of its entry with the Labor Arbiter
and not with the NLRC, since it was he who issued the decision sought to be executed (Callanta v.
NLRC, G.R. No. 105083, August 20, 1993)
Execution pending appeal
Execution shall issue only upon a judgment or order that finally disposes of an action or proceeding,
except in specific instances where the law provides for execution pending appeal.
A petition for certiorari with the CA or the SC shall not stay the execution of the assailed decision
unless a TRO is issued by the said courts. Thus, a party may already move for the execution of the
monetary award of the NLRC even during the pendency of the petition for certiorari of the NLRC
decision awarding the same with the CA or the SC.
Execution by independent judgment
A decision or order may be executed on motion within 5 years from the date it becomes final and
executory. After the lapse of such period, the judgment shall become dormant, and may only be enforced
by an independent action before the Regional Arbitration Branch of origin and within a period of 10 years
from the date of its finality.
Execution against a company under rehabilitation receivership
A stay of execution is warranted if the corporation is placed under rehabilitation receivership. Once the
receivership proceedings had ceased and the rehabilitation receiver and liquidator had been given the
imprimatur to proceed with the corporate liquidation, there is no more legal impediment for the execution
of the decision.
If the Labor Arbiter issues an order of reinstatement, is a writ of execution necessary?
NO. An order of reinstatement is immediately executory, even pending appeal, without need for a writ of
execution.
If the employer disobeys the order of reinstatement, the Labor Arbiter shall immediately issue a writ of
execution. If employer still refuses to comply with the order, the remedy is to move to cite the employer
for contempt.
Contempt powers of the Secretary of Labor and Employment.
In the exercise of his powers under this Code, the Secretary of Labor and Employment may hold any
person in direct or indirect contempt and impose the appropriate penalties therefor.
Quasi-judicial agencies that have the power to cite persons for indirect contempt can only do so by
initiating it in the RTC. They do not have jurisdiction to decide contempt cases as they are within the
competence of the RTCs.
Bureau of Labor Relations
Concurrent original and exclusive jurisdiction of the Bureau of Labor Relations (BLR) and the
Labor Relations Division (LRD) in the DOLE Regional Office
All inter-union conflicts
All intra-union conflicts
All disputes, grievances or problems arising from or affecting labor-management relations in all
workplaces (related labor relations dispute), except those arising from the implementation or
interpretation of CBAs which shall be the subject of grievance procedure and/or voluntary
arbitration.
Inter-union dispute or representation dispute refers to a case involving a petition for certification election
filed by a duly registered labor organization which is seeking to be recognized as the sole and exclusive
bargaining agent of the rank-and-file employees or supervisory employees, as the case may be, in the
appropriate bargaining unit of a company, firm or establishment.
It also refers to any conflict between and among legitimate labor unions involving representation
questions for purposes of collective bargaining or to any other conflict or dispute between legitimate labor
unions.
Inter-union dispute or internal union dispute refers to any conflict between and among union members,
including grievances arising from any violation of the rights and conditions of membership, violation of
or disagreement over any provision of the union’s constitution and by-laws or disputes arising from
chartering or affiliation of a union.
Related labor relations dispute refers to any conflict between a labor union and the employer or any
individuals, entity or group that is not a labor union or workers’ association. It covers the ff:
A. Any conflict between:
- a labor union and the employer, or
- a labor union and a group that is not a labor organization, or
- a labor union and an individual who is not a member of such union;
B. Cancellation of registration of unions and workers’ associations filed by individuals other than its
members, or a group that is not a labor organization; and
C. A petition for interpleader involving labor relations.
Concurrent administrative functions of the BLR and the LRD of the DOLE Regional Office
Registration of labor unions
Keeping of registry of labor unions
Keeping a file of all CBAs
Records of settlement of the labor dispute
Copies of orders and decisions of Voluntary Arbitrators

Original and exclusive Original and exclusive Original and exclusive

jurisdiction of the BLR jurisdiction of the Med- jurisdiction of the DOLE
 Director Arbiter Regional Directors

Complaints and petitions Inter-union disputes/ Petitions for cancellation of

involving the registration or representation/ certification registration of independent
cancellation of registration of election disputes unions, local chapters and
federations, national unions, workers’ association
industry unions, trade union
centers and their local chapters, Where to appeal: Where to appeal:
affiliates and member Secretary of Labor BLR Director
organizations
Where to appeal: Memorandum of appeal; appeal Memorandum of appeal; appeal
Secretary of Labor within 10 days from receipt of within 10 days from receipt of
the decision the decision
Memorandum of appeal; appeal
within 10 days from receipt of
the decision
Request for examinations of Intra-union disputes Petitions for deregistration of
books of accounts of said labor CBAs
organizations (federations,
national unions, industry unions Where to appeal: Where to appeal:
and trade union centers) BLR Director BLR Director

Where to appeal: Memorandum of appeal; appeal Memorandum of appeal; appeal

Secretary of Labor within 10 days from receipt of within 10 days from receipt of
the decision the decision
Memorandum of appeal(copy
furnished to the other party);
appeal within 10 days from
receipt of the decision
Intra-union disputes involving Other related labor relations Requests for examination of
said labor organizations disputes book of accounts of said labor
(federations, national unions, organizations.
industry unions and trade union
centers) Where to appeal: Where to appeal:
BLR Director BLR Director
Where to appeal:
Secretary of Labor Memorandum of appeal; appeal Memorandum of appeal; appeal
within 10 days from receipt of within 10 days from receipt of
Memorandum of appeal; appeal the decision the decision
within 10 days from receipt of
the decision
Contempt cases Contempt cases

NOTE:
Decisions cognizable by the BLR Director in the exercise of his original and exclusive jurisdiction are
appealable to the Secretary of Labor. The decision rendered by the Secretary of Labor in his appellate
jurisdiction may be elevated to the CA by way of a petition for certiorari under Rule 65.

Decisions in cases cognizable by the BLR Director in the exercise of his appellate jurisdiction may be
elevated directly to the CA by way of a petition for certiorari under Rule 65.
 Appeal to the BLR/Sec of Labor:
Appeal period: 10 days from receipt of the decision of the Med-Arbiter or the DOLE Regional
Director
Memorandum of appeal (copy furnished to the other party)
Reply: within 10 days from receipt of the Memorandum of appeal
Appeal to be resolved by the BLR/Sec of Labor within 20 days from receipt of the entire
records of the case
Only one motion for reconsideration is allowed

The filing of the memorandum of appeal from the decision of the Med-Arbiter or the DOLE Regional
Director and Director of the BLR stays the implementation of the assailed decision

Venue of complaints involving independent unions, local chapters or workers’ associations.

Complaints or petitions involving labor unions with independent registrations, local chapters, workers’
associations, or their officers or members shall be filed with the Regional Office that issued their
certificates of registration or certificates of creation of chartered local (local chapter).
Other inter-union or intra-union disputes and related labor relations disputes shall be heard and resolved
by the Med-Arbiter in the Regional Office of the DOLE.
Venue of complaints involving federations, national unions or industry unions
Complaints or petitions involving federations, national or industry unions, trade union centers and their
charted locals (local chapter) affiliates or members organizations shall be filed either with the Regional
Office or the BLR. But the complaint or petition shall be heard and resolved by the BLR.
NATIONAL CONCILIATION AND MEDIATION BOARD
The National Conciliation and Mediation Board (NCMB) is not a quasi-judicial agency; hence, its
decisions cannot be elevated to the Court of Appeals. The NCMB is an agency attached to the DOLE. It is
principally in-charge of the settlement of labor disputes through conciliation, mediation and of the
promotion of voluntary approaches to labor dispute prevention and settlement. The NCMB’s conciliation
and mediation functions are discharged by its Conciliators-Mediators.
NCMB Composition
a. Administrator
b. Two Deputy Administrators
c. Conciliators-Mediators – refers to an officer of the NCMB whose principal function is to assist in
the settlement and disposition of labor-management disputes through conciliation and preventive
mediation, including the promotion and encouragement of voluntary approaches to labor disputes
prevention and settlement.
Conciliation or mediation is a process whereby a third person usually called conciliator or mediator,
intervenes in a dispute involving two or more conflicting parties for the purpose of reconciling their
differences or persuading them into adjusting or settling their dispute. The conciliator or mediator
normally does not make or render any decision, his role being confined to the functions afore-described.
Jurisdiction of the NCMB
The NCMB has jurisdiction over cases arising from the implementation or interpretation of collective
bargaining agreements that are the subject of grievance procedure and/or voluntary arbitration.
Preventive Mediation
Preventive mediation as a mode of settlement covers potential labor disputes that are the subject of a
formal or informal request for conciliation and mediation assistance sought by either or both parties or
upon the initiative of the NCMB to avoid the occurrence of actual labor disputes and in order to remedy,
contain or prevent its degeneration into a full-blown dispute.
Procedure:
a. Filing a notice or request of preventive mediation
b. By entering into a submission agreement between the parties
c. By converting the notice of strike/lockout into a preventive mediation case which must be done
before the cooling-off period expires or before the union conducts strike voting
Notice of preventive mediation refers to the notice filed either by an employer or a duly registered labor
union with the NCMB-DOLE informing the latter of its desire to submit the issues between them for
preventive mediation and conciliation. The issues submitted for preventive mediation may either be
strikeable or non-strikeable.
In case of strikeable issues, both parties may mutually agree that the same be converted into a preventive
mediation case, in which event, no strike or lockout may be validly staged based on the same issues.
Conversion into a preventive mediation case has the effect of dismissing the notice of strike or notice of
lockout and dropping it from the docket of notice of strike/lockout as if no notice of strike has been filed.
Since there is no notice of strike to speak about, any strike subsequently staged by the union after the
conversion is deemed to have not complied with the requirements of a valid strike and therefore illegal.
Simply stated, during the pendency of the preventive mediation proceedings no strike could be legally
declared.
In case of non-strikeable issues raised in a notice of strike/lockout, the NCMB may motu proprio, convert
the same into a preventive mediation case. Alternatively, it may refer said issues to voluntary arbitration,
if they are in the nature of unresolved grievances or to the Med-Arbiter, if they involve representation or
inter-union disputes.
Duties of the NCMB in case of negotiation deadlock
In case the issues in the collective bargaining process are not settled by the parties among themselves, any
of the parties may declare a deadlock in the negotiation. Once there is a deadlock, the law directs the
NCMB to intervene either:
a. Motu proprio;
b. Upon request of management;
c. Upon request of the union
d. Upon the joint request of management and the union
The NCMB shall immediately call the parties to conciliation meetings and, for purposes of conducting
meetings, it is empowered to issue subpoenas duces tecum or ad testificandum.
Privileged communication
Information and statements made at conciliation proceedings shall be treated as privileged
communication and shall not be used as evidence. Conciliators and similar officials are not allowed to
testify in any court or body regarding any matters taken up at the conciliation proceedings conducted by
them.
This doctrine of privileged communication applies also to proceedings before the Labor Arbiter and
Commissioners of the NLRC, mediators-arbiters of the DOLE Regional Offices, and Conciliators-
Mediators of the NCMB.
Voluntary arbitration
If all efforts at settling the labor dispute amicably fail, the NCMB is mandated under the law to encourage
the parties to submit their case to voluntary arbitration.
Compromise agreements.
Any compromise settlement, including those involving labor standard laws, voluntarily agreed upon
by the parties with the assistance of the Bureau or the regional office of the Secretary of Labor and
Employment, shall be final and binding upon the parties.
A compromise upon its perfection becomes binding upon the parties and has the effect and authority of
res judicata even if not judicially approved. As such, it can only be rescinded on the ground of vitiated
consent and this is true even if the compromise turns out to be unsatisfactory to either of the parties.
Note that the law does not limit compromises to cases about to be filed or cases pending in courts. An
amicable settlement may still be made even after the judgment has become final and executory or even
prior to the execution of a final judgment. With the validity of a compromise agreement, a final
judgment is novated and superseded.
Judgment rendered pursuant to a compromise agreement is immediately executory
A judgment rendered pursuant to a compromise agreement is not appealable and is immediately
executory, unless a motion is filed to set aside the agreement on the ground of fraud, mistake or duress in
which case an appeal may be taken against the order denying the motion.
Compromises involving labor standards
Compromise agreements involving labor standards cases (money claims), such as claims of r cost-of-
living allowances effected by a union or counsel, must be reduced in writing and signed in the presence of
the DOLE Regional Director or his duly authorized representative and must be approved by the
complainants individually.
Compromise by union officers
A compromise agreement by union officers must be authorized by union members. Said authority must be
produced in evidence. Each laborer must authorize such union officers to enter into a compromise before
laborer’s right may be affected thereby.
The union has no authority to compromise the individual claims of the members who did not consent to
such settlement even if a clear majority of the union members agreed to a settlement with the employer.
The NLRC or any court shall not assume jurisdiction over issues involved in a compromise except in the
following instances:
a. in case of non-compliance of the compromise agreement; or
b. if there is prima facie evidence that the settlement was obtained through fraud, misrepresentation,
or coercion.
Registry of Unions and File of Collective Agreements.
The BLR shall keep a registry of legitimate labor organizations, i.e. those registered with the DOLE, and
CBA.
CBA valid even without certification by the BLR
The certification of the CBA by the BLR is not required to put a stamp of validity to such contract. Once
it is duly entered into and signed by the parties, a CBA becomes effective as between the parties
regardless of whether or not the same has been certified by the BLR.
Substantive validity of the CBA not affected by non-registration
Non-compliance with the procedural requirement of filing the CBA within 30 days from date of
execution, for purposes of registration, does not adversely affect the substantive validity of the CBA
between the company and the union, since a CBA is more than a contract, it being highly impressed with
public interest as an essential instrument to promote industrial peace, bearing the blessings not only of the
employer and employees concerned but even the DOLE, and thus it may not be set aside on technical
grounds, consistent with the public good.
Prohibition on Certification Election.
Article 232. Prohibition on certification election. The Bureau shall not entertain any petition for
certification election or any other action which may disturb the administration of duly registered existing
collective bargaining agreements affecting the parties except under Articles 253, 253-A and 256 of this
Code. (As amended by RA 6715)
Contract-bar rule
The existence of a duly registered CBA bars the holding of a certification election or any action that may
disturb said CBA. The rule is intended to promote stability and fairness in CBAs. In other words, no
petition for certification election, for intervention and disaffiliation, shall be conducted outside the 60-day
period immediately before the expiration of the 5-year term.
Requisites for contract-bar rule:
a. the CBA has been duly executed in conformity with law and duly registered;
b. it was ratified by the majority of all the workers in the bargaining unit;
c. it is adequate or complete for the terms and conditions of employment are not substandard;
d. it embraces the employees in the appropriate bargaining unit;
e. it was not hastily entered into or prematurely extended;
f. it is for a definite period (representation – 5 years, renegotiation – 3 years);
g. neither was there schism nor mass disaffiliation that affects the bargaining agent during the
lifetime of the CBA;
h. the contracting union is the certified bargaining agent in the bargaining unit;
i. the bargaining agent is not a captive union; and
j. the CBA can be terminated/modified only during the 60-day freedom period.
The existence of a CBA will not bar certification election in the following instances:
 The CBA is unregistered, i.e. not certified by the BLR or not registered with the DOLE Regional
Office. However, a CBA which is an arbitral award need not be certified by the BLR to constitute
as a bar to certification election
 The CBA is inadequate or incomplete, i.e. it does not contain all the substantial demands on terms
and conditions of employment expected by the union membership and leaves out matters which
the parties should have stipulated. Since the CBA does not contain the substantial economic
benefits for the employees/workers, such stipulation becomes a sweetheart contract.
The inadequacy of the CBA may include the failure to provide the legal requirements for
grievance machinery or voluntary procedure
 The CBA was hastily entered into, i.e. the renewal or extension of the agreement was premature,
frustrating the right of employees to petition for a certification election at the proper time.
The renewed CBA cannot constitute a bar to a petition for certification election for the very
reason that the same was not yet in existence when the petition was filed. Simply stated, the
doctrine of premature extension does not bar certification election.
 Withdrawal of affiliation from the contracting union brought about by schism or split, or mass
disaffiliation which can no longer foster industrial peace and stability; and to clear the doubt as to
the majority choice is to conduct a certification election, it being the most effective and
expeditious way to determine which labor organization truly represents the working force in the
appropriate bargaining unit.
 The automatic renewal clause in the CBA will not apply where the petitioning union makes
known to the employer its claim to represent the employees or seasonably files a petition for
certification election or has given a timely notice prior to the operative date of the automatic
renewal clause. In the absence of such timely notice or timely filing of the petition, the contract
executed during the automatic renewal period is a bar to certification election
 Contract where the identity of the representative is in doubt
 A CBA entered into between the employer and the union during the pendency of a petition for
certification election
 A CBA concluded between the employer and the union (incumbent bargaining unit) is not a bar
to certification election filed by another union and said CBA can be renegotiated at the option of
the new bargaining agent.
 A CBA registered with falsified supporting documents
 A CBA entered into with a labor union that is not the exclusive bargaining agent in the company
premises
 The petition for certification election is filed within the 60-day freedom period before the
expiration of the CBA
It is settled that no petition for certification election for any representation issue may be filed after the
lapse of the 60-day freedom period. The old CBA is extended until a new one is signed. The rule is that
despite the lapse of the formal effectivity of the CBA, the law still considers the same as continuing in
force and effect until a new CBA shall have been validly executed.
Good policy and equity demand that when an agreement is renegotiated before the appointed 60-day
period, its certification must still give way to any representation issue that may be raised within the 60-
day period so that the right of the employees to choose a bargaining unit agent and the right of unions to
be chosen shall be preserved (PLAC v. BLR, 75 SCRA 162)

LABOR ORGANIZATIONS: REGISTRATION AND CANCELLATION

Any applicant labor organization, association or group of unions or workers shall acquire legal
personality and shall be entitled to the rights and privileges granted by law to legitimate labor
organizations upon issuance of the certificate of registration by the BLR.
Under Article 240 of the LC, the organizations which may only register as legitimate labor organizations
are as follows:
a. Federation
b. National union
c. Industry union
d. Trade union center
e. Independent union
The issuance of the certificate of registration by the BLR or the DOLE Regional Office to the above
unions vests upon them legal personality as legitimate labor organizations.
20% membership requirement applies only to an independent union
The rule that at least 20% of all the employees in the bargaining unit where it seeks to operate should
support its application for registration applies only to an independent union. Thus, the application for
registration of a federation, national union, industry union or trade union center need not comply with the
20% membership requirement.
Upon its registration, the labor organization acquires legal personality as well as the rights and privileges
granted to it by law which are the following:
A. Right of Representation – A labor union is such party authorized to act as representative of its
members for the purpose of collective bargaining which includes the authority to represent them
for purposes of enforcing the provisions of the CBA. Since the union acts in a representative
capacity for the interest of the members, the latter are not allowed to intervene unless their
representative shows signs of fraud or collusion detrimental to their interest which should be
proven by clear and convincing evidence.
B. Right to be certified as the exclusive bargaining agent in the bargaining unit – The right of
representation refers to the right of the labor union to represent the individual members; while the
right to be certified as the exclusive bargaining agency refers to the right to represent the entire
employees in the bargaining unit.
e.g. There are 500 employees in the bargaining unit, 300 are members of the union and 200 are
non-members. Right of representation applies to 300 members of the union, but the right to be
certified as the exclusive bargaining agency in the bargaining unit applies to all 500 employees,
members and non-members.
 It being certified as the exclusive bargaining agent gives the union the right to collectively
bargain with the management to the exclusion of other minority or competing unions. This is
known as the doctrine of union monopoly or the exclusive right rule.
C. Right to acquire and dispose of property, real or personal, pursuant to the purpose embodied in its
constitution and by-laws – This right usually belongs to the President with the approval of the
Board of Directors.
D. Right to sue and be sued in its own registered name
E. Right to engage in activities which would redound to the welfare and benefit of the members of
the union – It may engage in activities such as cooperativism, housing projects, business and
others provided they are not contrary to law.
F. Right to be exempted from taxes – The incomes and property of legitimate organizations shall be
free from taxes, duties and other assessments, including gifts or donations they may receive from
fraternal and similar organizations, local or foreign, except earnings or benefits derived from
purely business activities
G. Right to be furnished a copy of employer’s audited financial statements – Upon written request,
the union has the right to be furnished by the employer of an annual audited financial statement.
Refusal to furnish requested information, such as an audited financial statement of the employer)
is in itself an unfair labor practice and may lend support to the inference of surface bargaining.
A federation, or national union, or industry union refers to a group of legitimate labor organizations in
private establishments organized for collective bargaining purposes or for dealing with employers
concerning the terms and conditions of employment of its member-unions or for participating in the
formulation of social and employment policies, standards and programs and is registered with the BLR.
Trade union center is any group of national unions or federations organized for the mutual aid and
protection of its members for assisting such members in collective bargaining, or for participating in the
formulation of social and employment policies, standards, and programs, and is duly registered with the
BLR.
Independent union refers to a labor organization operating at the enterprise level which acquired legal
personality through independent registration under Art. 240 of the LC.
Applications for registration of independent labor unions, local chapters, workers’ associations shall be
filed with the Regional Office where the applicant principally operates. It shall be processed by the Labor
Relations Divisions at the Regional Office Applications for registration of federations, national unions or
workers’ associations operating in more than one region shall be filed with the Bureau or the Regional
Offices, but shall be processed by the Bureau.

Requirements for registration of labor organizations

A. Name of the applicant labor union, its principal address, the name of its officers and their
respective addresses, approximate number of employees in the bargaining unit where it seeks to
operate, with a statement that it is not reported as a chartered local of any federation or national
union
B. The minutes of the organizational meeting and the list of employees who participated in the said
meeting
C. The name of all its members comprising at least 20% of the employees in the bargaining unit
D. The annual financial reports if the applicant has been in existence for 1 or more years, unless it
has not collected any amount from the members, in which case a statement to this effect shall be
included in the application
 E. The applicant’s constitution and by-laws, minutes of its adoption or ratification, and the list of the
members who participated in it

Chartering and Creation of a Local Chapter

A duly registered federation or national union may directly create a local chapter by issuing a charter
certificate indicating the establishment of the local chapter. The chapter shall acquire legal personality
only for purposes of filing a petition for certification election from the date it was issued a charter
certificate.
The requirement that an applicant independent union should submit the names of all its members
comprising at least 20% if all the employees in the bargaining union where it seeks to operate does not
apply to chartering of a local union.
Under Art. 240 of the LC, the issuance of a certificate of registration to a federation, national union,
industry union or an independent union will vests in them legal personality or legitimacy. However, a
local chapter directly created by a federation or national union acquires legal personality under the
following instances:
a. An unregistered local chapter acquires an incomplete legal personality upon the issuance to it of a
charter certification by a federation or national union which is only designed for one purpose,
that is, to file a petition for certification election
b. A local chapter acquires complete or full legal personality only upon submission of its charter
certificate and the documents required under Art. 240-A, infra, to the DOLE. The fact of
submission, not registration to the DOLE, signals the start of its complete status as a legitimate
labor organization and as such it could be certified as the collective bargaining agent in the
company.
Thus, the issuance of a charter certificate by the federation or national union to a local chapter does not
clothe the latter with complete and full legal personality but only for the purpose of certification election
which can be made from the date it was issued to a charter certificate. However, the moment copies of the
charter certificate and the documentary requirements are submitted to the BLR or the DOLE Regional
Office, the local chapter acquires complete and full legal personality.
Principle of agency; affiliation; disaffiliation
The sole essence of affiliation is to increase, by collective action, the common bargaining power of local
unions for the effective enhancement and protection of their interest.
The mother federation has the status of an agent while the local union/local chapter remains the basic unit
of the association free to serve the common interest of all its members subject only to the restraints
imposed by the constitution and by-laws of the association. The affiliate union does not owe its existence
to the federation. It is a separate and distinct voluntary association owing its creation to the will of its
members. It does not give the federation the license to act independently of the affiliate union. It only
gives rise to a contract of agency where the former acts in representation of the latter. Hence, local unions
are considered principals while the federation is deemed to be merely their agents. As such principals, the
unions are entitled to exercise the rights and privileges of a legitimate labor organization, including the
right to seek certification as the sole and exclusive bargaining agent in the appropriate employer unit
(Coastal Subic Bay Terminal, Inc. v. DOLE, 537 Phil 459)
A local union has the right to disaffiliate from its mother union or declare its autonomy. A local union,
being a separate and voluntary association, is free to serve the interests of all its members including the
freedom to disaffiliate or declare its autonomy from the federation which it belongs when circumstances
warrant, in accordance with the constitutional guarantee of freedom of association. Local chapters are not
compelled to stay with the federation. They can secede from the mother union with the effect of losing
their juridical personality unless they become independent unions by submission of the required
documents in addition to its charter certificate. A duly registered union that affiliates with the federation
does not lose its legal personality. Upon disaffiliation, it does not need to register anew.
Without said affiliation, the employer has no link to the mother union. The obligation of the employee to
pay union dues is coterminous with his affiliation or membership. The right to check-off federation dues
ceases upon the disaffiliation of the local union from the federation or national union. The company
cannot continue the check-off in favor of the federation after the former was duly notified of the
disaffiliation and of the local union’s members having already rescinded their check-off authorization.
The employee’s check-off authorization, even if declared irrevocable, is good only as long as they remain
members of the union concerned.
In formulating the substitutionary doctrine, the only consideration is the employees’ interest in the
existing bargaining agreement. The agent’s interest never entered the picture. Thus, even during the
effectivity of the CBA executed between the employer and employees through their agent, the employees
can change said agent but the contract continues to bind them up to its expiration date. They may bargain
however for the shortening of said expiration date. Because, by nature, the CBA is a contract in
personam.
When the local union disaffiliated from the federation, the former did not lose its legal personality
as the bargaining agent under the CBA. The union security clause in the CBA cannot be used to justify
the dismissal of the employees who voted for the disaffiliation of the local union from the federation or
national union. In a situation where the whole union withdrew from the federation with which it was
affiliated, there can be no violation of the union security clause in the CBA. Thus, there was no sufficient
basis to terminate the employment of said employees despite the existence of the closed shop agreement
stipulation in the CBA (Tropical Hut Employees Union v. Tropical Hut, G.R. L-43495-99, January 20,
1990).
Local union’s disaffiliation from the federation and new CBA, not an unfair labor practice
The act of the local union in disaffiliating from the federation or national union and entering into a CBA
with the employer without its participation is not an unfair labor practice. Since the disaffiliation was
valid, the federation ceases to have any legal personality to represent the local union in the CBA
negotiation. The complaint for an unfair labor practice filed by the federation against the employer, the
local union and their officers, having filed by the party which has no legal personality to institute the
complaint, should be dismissed for failure to state a cause of action.
Action on application.
The BLR or the DOLE Regional Office shall act on all applications for registration by:
a. Approving the application and issuing the certificate of registration or acknowledging receipt the
notice/report; or
b. Denying the application/notice for failure of the applicant to comply with the requirements.
All requisite documents shall be certified under oath by the secretary or the treasurer of the organization,
as the case may be, and attested to by its president. This requirement is designed to insure that the labor
organization with which the employer is dealing with is a bona fide organization, and to prevent the
commission of fraud.
The proper remedy against the refusal to register a labor organization which complies with all the
requirements is mandamus, there being no other plain, speedy, and adequate remedy in the ordinary
course of law.
Denial of registration; appeal.
The notice of the Regional Office or the BLR denying the application for registration/returning the notice
of change of name, affiliation, merger or consolidation shall be in writing stating in clear terms the
reasons for denial or return.
The denial may be appealed to the BLR if denial is made by the DOLE Regional Office or the Secretary
of Labor if denial is made by the BLR, within 10 days from receipt of such notice, on the ground of grave
abuse of discretion or violation of the Rules.
The BLR or the Secretary of Labor shall decide the appeal within 20 days from receipt of the records of
the case.

Additional requirements for federations or national unions.

Subject to Article 240, if the applicant for registration is a federation or a national union, it shall, in
addition to the requirements of the preceding Articles, submit the following:
(a) Proof of the affiliation of at least 10 locals or chapters, each of which must be a duly recognized
collective bargaining agent in the establishment or industry in which it operates, supporting the
registration of such applicant federation or national union;
(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.
A local union or local chapter means any labor organization in the private sector operating at the
enterprise level whose legal personality is derived through the issuance of a charter certificate by a duly
registered federation or national union and reported to the Regional Office.
A labor federation is any group of legitimate labor organizations in a private establishment operating
within an identified industry, organized for collective bargaining or for dealing with employers
concerning terms and conditions of employment within an industry, or for participating in the formulation
of social and employment policies, standards, and programs in such industry, which is duly registered
with the BLR.
A legitimate labor organization is any association of employees which exists in whole or in part for the
purpose of collective bargaining or of dealing with employers concerning terms and conditions of
employment. In labor relations, a legitimate labor organization is that which is registered with the DOLE.
A legitimate workers’ association is an association of workers organized for mutual aid and protection of
its members or for any legitimate purpose other than collective bargaining and duly registered with the
DOLE.
Structural types of labor union
  Craft union – an organization of employees engaged in a single occupation or in a group of
closely related occupations based upon a skill or specialty in the performance of one task or of a
number of closely related crafts.
 Labor union- a conglomerate of different groups having in mind the solidarity of all the working
class. The membership is without regard to craft, industry or profession.
 Industrial union – is organized on the basis of skills or specialties in a given industry and without
regard to craft or occupation.
Types of an affiliate of a labor federation
An affiliate of a labor federation or national union may be a chartered local or an independently
registered union. A chartered local does not undergo the rudiments of registration unlike an
independently registered union. Although not registered, by force of law, such local or chapter becomes a
legitimate labor organization.
Effect of affiliation
The labor union that affiliates with a federation is subject to the laws of the parent body under whose
authority the local union functions. The constitution, by-laws and rules of the mother federation, together
with the charter it issues to the local union, constitutes an enforceable contract between them and between
the members of the subordinate union inter se. Thus, pursuant to the constitution and by-laws, the
federation has the right to investigate and expel members of the local union.

Locals remain as separate and distinct units

The locals are separate and distinct units primarily designed to secure and maintain an equality of
bargaining power between the employer and their employee-members in the economic struggle for the
fruits of the joint productive effort of labor and capital; and the association of the locals into the national
union was in furtherance of the same end. The locals remain as the basic units of association free to serve
their own and the common interest of all, subject to the restraints imposed by the constitution and by-laws
of the Federation, and free also to renounce the affiliation for mutual welfare upon the terms laid down in
the agreement which brought it into existence.

Cancellation of registration; appeal

The certificate of registration of any legitimate labor organization, whether national or local, may be
cancelled by the Bureau, after due hearing, only on the grounds specified in Article 247 hereof.
Venue of action for cancellation of registration.
If the respondent to the petition is a local/chapter, affiliate or a workers’ association with operations
limited to one region the petition shall be filed with the Regional Office having jurisdiction over the place
where the respondent principally operates.
Petitions filed against federations, national or industry unions, trade union centers, or workers’
associations operating in more than one regional jurisdiction shall be filed with the Bureau.
Grounds for cancellation of registration.
(a) Misrepresentation, false statement or fraud in connection with the adoption or ratification of the
constitution and by-laws or amendments thereto, the minutes of ratification, and the list of members who
took part in the ratification;
(b) Misrepresentation, false statement 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.
The grounds for cancellation classified into 2 categories
The fraudulent acts are committed in relation to the following:
a. The adoption or ratification of the constitution and by-laws or amendments thereto;
b. The minutes of ratification;
c. The list of members who took part in the ratification;
d. The election of officers and the minutes governing said election; or
e. The list of voters.
The voluntary act refers to the following:
a. Cancellation of union registration by voluntary dissolution;
b. Approved by 2/3 votes of its general membership in a meeting called for that purpose; and
c. Application for cancellation is filed by the union board and attested to by its president.
For fraudulent acts and misrepresentation to be grounds for cancellation of union registration, the nature
of the fraud and misrepresentation must be so grave and compelling enough to vitiate consent of the
majority of the union members in order to justify such cancellation such as signatories in a petition
containing a withdrawal of support which may have been procured through duress, coercion, or for
valuable consideration.
Effect of cancellation of registration of federation on its locals or chapters
The cancellation of registration of a federation or national union shall operate to divest its locals/chapters
of their status as legitimate labor organizations. For a local chapter, it shall acquire legal personality only
for purposes of filing a petition for certification election from the date it was issued a charter certificate
by a duly registered federation. However, it shall be entitled to all rights and privileges of a legitimate
labor organization only upon submission of the required document in addition to its charter certificate.
Cancellation of registration certificate; its effect
Cancellation of certificate of registration would not entail a dissolution of said association or its
suspension. The existence of the union would not be affected by said cancellation, although its juridical
personality, statutory rights and privileges would be suspended thereby.
Illegal strike, not a ground for cancellation of certificate of registration
Engaging in “cabo” system or other illegal practices should not be interpreted to include an illegal strike
declared by the union, but should be construed to mean such activity engaged into by the union that
partakes of the nature of a labor contractor or cabo system. The law does not intend to include illegally
declared strike simply because strike per se is legal. If the law intends to include illegally declared strike,
the same could have been expressly placed therein.
Effect of a petition for cancellation of registration
A petition for cancellation of union registration shall not suspend the proceedings for certification
election nor shall it prevent the filing of a petition for certification election.
The filing of a petition for cancellation of union registration does not have the effect of depriving it of its
rights as a legitimate labor organization under the LC. If there is no final order of cancellation, the labor
organization whose registration is sought to be cancelled shall continue to exercise said rights. The
pendency alone of cancellation proceedings does not affect the rights of a legitimate labor organization
such as conducting a certification election.
Equity of the incumbent.
The incumbent bargaining agent will not file a petition for certification election because it will not contest
its own status as the bargaining representative. It does not lose its representative status; it remains the sole
and exclusive bargaining agent until it is replaced by another. Until so replaced, it has the right to retain
the recognition by the employer.
Rights and conditions of membership in a labor organization.
Any employee, whether employed for a definite period or not, shall, beginning on his first day of
service, be considered an employee for purposes of membership in a labor union.
The relationship of the union and members is governed by their mutual agreement, the terms and
conditions of which are set forth in the union constitution and by-laws and binding on the members, as
well as the organization itself, provided that it is not against the law, morals, good customs, public order
and public policy.
The union may be considered the agent of its members for the purpose of securing for the fair and just
wages and good working conditions and is subject to the obligation of giving the members as its
principals all information relevant to union and labor matters entrusted to it.
Right of union members
 Right against arbitrary or excessive initiation fees, fines and forfeitures
 Right to full and detailed reports on financial transactions
 Right to directly elect union officers, both local and national, by secret ballot
 Right to take part in determining and voting upon major questions of policy such as declaring a
strike
 Right against admission of subversives
 Right against appointment or election of certain persons
 Right against unauthorized collection of fees or disbursement of funds
 Right to demand receipt for payment of fees, dues or other contributions
 Right against unauthorized disbursement of union funds
 Right against payment of unauthorized compensation to union officers
 Right of inspection of books of accounts and other financial records of the union
 Right against unreasonable assessments or other extraordinary fees
 Right against check-off for special assessment or other extraordinary fees
 Right to be informed on matters affecting constitution and by-laws, CBA, prevailing labor
relations system and rights and obligations under existing laws
 Right to run for union office
 Right to due process on matters of discipline
Qualifications of union officers
 He must be an employee of the company where the union is operating
 He must be a member of the union in good standing
 He must not have been convicted of a crime involving moral turpitude, unless he had been given
an absolute pardon for such offense
The members shall directly elect their officers, including those of the national union or federation, to
which they or their union is affiliated, by secret ballot at intervals of 5 years. No qualification
requirements for candidacy to any position shall be imposed other than membership in good
standing in subject labor organization
Disqualifications of union officers
 Conviction of a crime involving moral turpitude
 A member who belongs to a subversive organization
 A member who is engaged directly or indirectly in any subversive activity
Election of union officers
The union members shall directly elect their officers in the local union as well as their national officers in
the federation, by secret ballot at intervals of 5 years.
Under Art. 250 of the LC, as amended, only members of the union can participate in the election of union
officers. The question, however, of eligibility to vote may be determined through the use of the applicable
payroll period and employee’s status during the applicable payroll period; the payroll of the month next
preceding the labor dispute in case of regular employees and the payroll period at or near the peak of
operations in case of employees in seasonal industries (Tancino v. Ferrer-Calleja, G.R. No. 78131,
January 20, 1988)
The submission of the employees’ name with the BLR as qualified members of the union is not a
condition sine qua non to enable said members to vote in the election of union’s officers.
Expulsion of union officers.
The remedy against erring union officers is not referendum but union expulsion. If the union officers were
guilty of the acts imputed against them, they should be meted out the appropriate penalty of expulsion
from the union and not call for a referendum to decide the issue.
Grounds for impeachment or expulsion
- Failure to provide mandatory adequate labor education and research services to members of a
labor organization
- Misuse or illegal disbursement of the labor education and research fund
- Any irregularity in the approval of the resolutions on unauthorized compensation of officers
- Membership in another labor union
- Culpable violation of the constitution and by-laws of the union

Filing of intra-union dispute cases

Cases involving violation of the constitution and by-laws and the rights and conditions of membership are
cognizable by the Regional Office of the DOLE where the union is domiciled.
Complaints for violation of rights and conditions of union membership “may” be signed by at least 30%
of all the members of the union, if the violation affects the general membership. Where the violation
affects only a particular member, he may alone file his complaint.
The 30% consent-requirement under Art. 250 is not mandatory. The use of the permissive word “may” in
the provision negates the notion that the assent of 30% of all the members is mandatory.
Exhaustion of intra-union remedies.
Parties must adhere to the rule that redress must first be sought within the union itself in accordance with
its constitution and by-laws before a case is elevated to the jurisdiction of labor agencies.
The requirement of exhaustion of intra-union remedies is not applicable to the following:
1. Resort to the remedy would be futile, illusory, or vain
2. Remedy applied for was not acted upon for an unreasonable length of time
3. Relief sought was simply for damages
4. Act complained of is contrary to the constitution and by-laws
5. Issue is purely a question of law
6. Due process was not observed

Check-off is a method of deducting from an employee’s pay at prescribed period, the amounts due the
union for fees, fines or assessments for the purpose of raising revenues for the union. The employee
himself may voluntarily assign so much of his wages as may be necessary to meet his union dues and
direct his employer to pay the amount to the treasurer of his union.
Union agreements containing check-off provisions, may establish a general check-off for all employees,
or in the absence of a closed shop, they may provide a check-off for every union member without the
requirement of individual authorization.
Types of check-off terms.
a. Voluntary irrevocable. Employer agrees to deduct union dues and other monies from the worker’s
wages if the latter signs a form authorizing the former to do so. This generally requires that the
worker’s authorization shall not be irrevocable for a certain period or beyond the termination date
of the contract, whichever is sooner.
b. Voluntary revocable. Employer agrees to deduct union dues and other monies from the worker’s
wages if the worker signs a form authorizing him to do so. The worker is given the discretion to
revoke the authorization at any time he sees fit.
c. Involuntary irrevocable. Employer agrees that to secure and keep his job, a worker must sign a
form authorizing the employer to deduct union dues and other monies from his wages
d. Automatic. Employer agrees to deduct automatically, dues and other monies from the worker’s
wages and turn over the money to the union.
e. Year-to-year renewal. Employer agrees to deduct union dues and other monies from the worker’s
wages if the worker signs a check-off authorization.

Rulings on check-off
A local union has the right to disaffiliate from its mother union or declare its autonomy. The
obligation of the employee to pay union dues is coterminous with his affiliation or membership.
The right to check-off federation dues ceases upon the disaffiliation of the local union from the
federation or national union. The company cannot continue the check-off in favor of the
federation after the former was duly notified of the disaffiliation and of the local union’s
members having already rescinded their check-off authorization. The employee’s check-off
authorization, even if declared irrevocable, is good only as long as they remain members of the
union concerned.
The employees’ check-off authorization, even if declared irrevocable, is good only as long as they
remain members of the union concerned because as such members, they were obliged to pay the
corresponding dues and assessments to their union. However, the moment that they separated
from and left the union and joined another labor organization, then they were no longer obliged to
pay the said dues and assessments.
Individual written authorization required in check-off
An individual written authorization duly signed by every employee is required in order that a special
assessment may be validly checked-off. Even assuming that the special assessment was validly levied,
and granting that individual written authorizations were obtained by the Union, nevertheless, there can be
no valid check-off considering that the majority of the union members had already withdrawn their
individual authorizations. A withdrawal of individual authorizations is equivalent to no authorization at
all. (Palacol v. Ferrer-Calleja, 182 SCRA 710)
No required form for disauthorization.
It is not correct to point out, however, that disauthorizations are not valid for being collective in form, as
they are “mere bunches of randomly procured signatures, under loose sheets of paper.” The contention
deserves no merit for the simple reason that the documents containing the disauthorizations have the
signatures of the union members. The Court finds these retractions to be valid. There is nothing in the law
which requires that the disauthorization must be in individual form.
Concept of mandatory activity.
A mandatory activity is a judicial process of settling disputes laid down by the law. An amicable
settlement entered into by the management and the union is not a mandatory activity under the Code.
Moreover, the law explicitly requires an individual written authorization of each employee concerned, to
make the deduction of attorney’s fees valid.
However, the benefits awarded to the employees formed part of the collective bargaining negotiations
although placed under compulsory arbitration. Notwithstanding its compulsory nature, compulsory
arbitration is not the mandatory activity under the Code which dispenses with individual written
authorizations for check-offs.
RIGHTS OF LEGITIMATE LABOR ORGANIZATIONS
Article 242. Rights of legitimate labor organizations. A legitimate labor organization shall have the right:
(a) To act as the representative of its members for the purpose of collective bargaining;
(b) To be certified as the exclusive representative of all the employees in an appropriate collective
bargaining unit for purposes of collective bargaining;
(c) To be furnished by the employer, upon written request, with his annual audited financial statements,
including the balance sheet and the profit and loss statement, within thirty (30) calendar days from the
date of receipt of the request, after the union has been duly recognized by the employer or certified as the
sole and exclusive bargaining representative of the employees in the bargaining unit, or within sixty (60)
calendar days before the expiration of the existing collective bargaining agreement, or during the
collective bargaining negotiation.
(d) To own property, real or personal, for the use and benefit of the labor organization and its members;
(e) To sue and be sued in its registered name; and
(f) To undertake all other activities designed to benefit the organization and its members, including
cooperative, housing welfare and other projects not contrary to law.
Notwithstanding any provision of a general or special law to the contrary, the income, and the properties
of legitimate labor organizations, including grants, endowments, gifts, donations and contributions they
may receive from fraternal and similar organizations, local or foreign, which are actually, directly and
exclusively used for their lawful purposes, shall be free from taxes, duties, and other assessments. The
exemptions provided herein may be withdrawn only by a special law expressly repealing this provision.
Right of representation for the purpose of collective bargaining.
Right of representation is basically the right to be certified as the exclusive bargaining agent of all
employees in an appropriate bargaining unit for purposes of collective bargaining which includes the
authority to represent them for the purpose of enforcing the provisions of the CBA.
Right to be furnished by the employer with its annual audited financial statements.
The right to be furnished by the employer with his annual audited financial statements includes the
balance sheet and the profit and loss statement. The request must be in writing. The employer is required
to furnish the union the annual audited financial statements within 30 calendar days from the date of
receipt of the request.
Reportorial requirements.
A legitimate labor organization is required to submit to the Bureau of Labor Relations the following
documents:
a. Its constitution and by-laws, or amendments thereto, the minutes of ratification, and the list of
members who took part in the ratification of the constitution and by-laws within 30 days from
adoption or ratification of the constitution and by-laws or amendments thereto
b. List of officers, minutes of the election of officers, and list of voters within 30 days from election
c. Its annual financial report within 30 days after the close of every fiscal year
d. Its list of members at least once a year or whenever required by the BLR
Failure to submit documents
The failure to comply with the documentary requirements is no longer a ground for the cancellation of the
union registration but will subject the erring officers or members to suspension, expulsion from
membership or any appropriate penalty.
Fraudulent acts
Fraudulent acts such as misrepresentation, false entries or fraud in the preparation of the financial report
are no longer grounds to cancel union registration. Article 252 penalizes merely the failure to submit an
annual financial report within 30 days after the close of every fiscal year. Thus, acts of misrepresentation,
false entries or fraud should be treated only as infractions, the imposable penalty of which may range
from suspension to expulsion from membership or any appropriate penalty that may be imposed upon the
erring officers or members.
Right to self-organization.
The right to self-organization includes the right to form, join or assist labor organizations for purposes of
collective bargaining through representatives of their own choosing and to engage in lawful concerted
activities for the same purpose or for their mutual aid and protection, subject to the provisions of Article
279.
Coverage and employees’ right to self-organization.
a. All persons employed in commercial, industrial and agricultural enterprises and in religious,
charitable, medical or educational institutions whether operating for profit or not
b. Ambulant, intermittent and itinerant workers, self-employed people, rural workers and those
without any definite employers may form labor organizations for the purpose of enhancing and
 defending their interests and for their mutual aid and protection, not for purposes of collective
bargaining
c. Supervisory employees (first-line managers). 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 unit and/or labor organizations of their own
d. Security guards. They may freely join a labor organization of the rank-and-file employees or that
of a supervisory union depending on their rank.
e. Employee (non-member of a cooperative). While employees who are at the same time members
of a cooperative cannot join labor unions for purposes of collective bargaining, they are not,
however, prohibited from withdrawing their membership in the cooperative in order to join a
labor union.
f. Homeworkers have the right to form, join, or assist organizations of their own choosing in
accordance with law. The registration of homeworkers’ organizations or associations that
complied with the requirements of the law, will vest legal personality thereto.
g. Employees of government corporations established under the Corporation Code shall have the
right to organize and to bargain collectively with their respective employers.
h. Alien employees with valid working permits issued by the DOLE may exercise the right to self-
organization and join or assist labor unions for purposes of collective bargaining if they are
nations of a country which grants the same or similar rights to Filipino workers.
i. Confidential employees who assist and act in a confidential capacity or have access to
confidential matters, of persons who exercise managerial function in the field of labor relations
are disqualified to form or join a union. However, if the access to confidential labor relations
information is merely incident in the performance of their functions, the do not have to be treated
as confidential employees; thus, they are eligible and have the right to form or join a union.
Another instance is when the confidential employee does not have access or is not allowed to
access to confidential labor relations information, there is no legal prohibition against them from
forming, assisting, or joining a union.
Excluded from the coverage of right to self-organization.
a. An employee of a cooperative who is a member and co-owner thereof cannot invoke the right to
collective bargaining for certainly, an owner cannot bargain with himself or his co-owners.
b. Confidential employees (such as division secretaries, staff of general management, staff of
personnel department, secretaries of audit, etc.) are ineligible to form, assist, or join a union
because by the nature of their functions, they assist and act in a confidential capacity to, or have
access to confidential matters, of persons who exercise managerial functions in the field of labor
relations, and the union might not be assured of their loyalty in view of evident conflicting
interests.
c. An alien employee with no valid working permit or who is a national of a country that do not
grant the same or similar rights to Filipino workers.
d. Managerial employees
The right of members of the Iglesia ni Kristo sect not to join a labor union for being contrary to their
religious beliefs does not bar the members of that sect from forming their own union for the recognition
of the tenets of the sect should not infringe on the basic right to self-organization granted by the
Constitution to workers regardless of religious affiliation.
Managerial employees.
In order that the power to recommend may qualify an employee as a managerial employee, it must not
only be effective but the exercise of such authority should not be merely of a routinary or clerical nature
but should require the use of independent judgment.
Types of managerial employees.
a. Top managers
b. Middle managers
c. First-line managers
The top and middle managers have the authority to device, implement and control strategic and
operational policies of the company. The president, senior vice-president, or the chief executive officer
are examples of top management level. The responsibility of the middle manager is to see to it that the
operating policies are put into action by other managers under him.
The lowest in rank is the first-line manager or the supervisor whose task is simply to ensure that such
policies are carried out by the rank-and-file employees.
The mere fact that an employee is designated “manager” does not ipso facto make him one. Designation
should be reconciled with the actual job description of the employee for it is the job description that
determines the nature of employment. Thus, if the employees do not participate in the policy making but
are given ready policies to execute and standard practices to observe, thus having little freedom of action,
they are not managerial employees.
Where such power, recommendatory in character, is subject to evaluation, review, and final action by the
department heads and other executives of the company, the same, although present, is not effective and
not an exercise of independent judgment.
Separation of union doctrine.
The separation of union doctrine prohibits a situation where the supervisory union and the rank-and-file
union operating within the same establishment are both affiliated with one and the same federation or
national union because of the possible conflict of interest which may arise in the areas of discipline,
collective bargaining and strike.
However, the law now allows a rank-and-file union and a supervisors’ union operating within the same
bargaining unit to join the one and the same federation or national union. It was held in Adamson &
Adamson that the unions formed independently by the supervisory and rank-and-file employees in a
company may legally affiliate with the same federation. In other words, the separation of unions doctrine
has already been abandoned with the enactment of R.A. 9481.
Confidential employee rule.
Within the context of labor relations, “confidential employees” are those who meet the following criteria:
a. They assist or act in a confidential capacity
b. To persons or officers who formulate, determine and effectuate management policies in the field
of labor relations
A confidential employee may be a rank-and-file employee or supervisory employee but because in the
normal course of his duties, he becomes aware of management policies relating to labor relations, he is
not allowed to assist, form or join a rank-and-file union or supervisory union, as the case may be. To
allow him to join a union would give rise to a potential conflict of interest.
It is settled that confidential employees who assist and act in a confidential capacity or have access to
confidential matters, of persons who exercise managerial functions in the field of labor relations are
disqualified to form or join a union. However, if the access to confidential labor relations information is
merely incidental in the performance of their functions, they do not have to be treated as confidential
employees; thus, they are eligible and have the right to form or join a union.
Therefore, access to information which is regarded by the employer to be confidential from the business
standpoint, such as financial information or technical trade secrets, will not render an employee a
confidential employee. An employee may not be excluded from an appropriate bargaining unit merely
because he has access to confidential information concerning the employer’s internal business operations
which is not related to the field of labor relations.
Examples of confidential employees.
- Accounting personnel, radio and telegraph operators having access to confidential information
- Branch managers, cashiers and controllers – they have access to the statements of financial
condition, vault combination, cash codes for telegraphic transfers, demand drafts and other
negotiable instruments. A confidential employee is one entrusted with confidence on delicate
matters, or with the custody, handling or care and protection of the employer’s property.
(National Union Ass’n v. Torres, 239 SCRA 546, 1994)
- Legal secretaries
Doctrine of necessary implication.
While Art. 255 of the LC singles out managerial employees as ineligible to join, assist or form any labor
organization, under the doctrine of necessary implication, confidential employees are similarly
disqualified. In other words, in the table of collective bargaining process, managerial employees are
supposed to be on the side of the employer to act as the representatives and to see to it that its interests are
well-protected. The employer is not assured of such protection if managerial employees themselves are
union members. Collective bargaining in such a situation can become one-sided. It is the same reason
why the position of confidential employees is included in the disqualification found in Art. 255 as if such
disqualification was written in the provision.
Right of employees in the public service.
Employees of government corporations established under the Corporation Code shall have the right to
organize and to bargain collectively with their respective employers. All other employees in the civil
service shall have the right to form associations for purposes not contrary to law.
The following are not eligible to form, join or assist any employees’ organizations:
a. High-level, highly confidential and coterminous employees
b. Members of the AFP
c. Members of the PNP
d. Firemen
e. Jail guards
Matters proper for collective negotiations
a. Schedule of vacation and other leaves
b. Personnel growth and development
c. Communication system
d. Provision of protection and safety
e. Provision for facilities for handicapped personnel
f. Physical fitness program
g. Provision for family planning services for married women
h. Annual medical/physical examination
i. Recreational activities and facilities
j. Such other concerns which are not prohibited by law and CSC rules and regulations
Matters not proper for collective negotiations
 a. Terms and conditions of employment
b. Matters that require the appropriation of funds such as increase in salary emoluments and
allowances and allowances; facilities requiring capital outlays; car plan; provident fund
c. Matters that involve exercise of management prerogatives such as appointment; promotion;
assignment or detail; reclassification or upgrading of position
Government employees may not strike
Government employees may, therefore, through their union or associations, either petition the Congress
for the betterment of the terms and conditions of employment which are within the ambit of legislation or
negotiate with the appropriate government agencies for the improvement of those which are not fixed by
law.
But employees in the civil service may not resort to strikes, walkouts and other temporary work stoppages
to pressure the government to accede to their demands.
Inclusion of members of employees outside the bargaining unit (comingling)
The inclusion as union members of employees outside the bargaining unit shall not be a ground for the
cancellation of the union registration. Said employees are automatically deemed removed from the list of
membership of said union. Thus, if supervisory employees are included as members of a rank-and-file
union, they are automatically removed from the list of membership by operation of law. Likewise, if the
rank-and-file employees were in the list of members of a supervisory union, they are also deemed
removed by operation of law.
In Tagaytay Highlands Int’l Golf Club, Inc. v. Tagaytay Highlands Employees Union-PTGWO, the core
issue was whether the comingling affects the legitimacy of a labor organization and its right to file a
petition for certification election. The SC held that the inclusion of supervisory employees in a labor
organization seeking to represent the bargaining unit of the rank-and-file employees does not divest it of
its status as a legitimate labor organization.
Non-abridgement of right to self-organization.
It shall be unlawful for any person to restrain, coerce, discriminate against or unduly interfere with
employees and workers in their exercise of the right to self-organization.

UNFAIR LABOR PRACTICES

Unfair labor practice is an act of an employer or union – or their agents, which violates the right of
workers to self-organization, which includes:
a. the right to form a union
b. the right to take part in its formation
c. the right to join or assist a union of their own choosing
d. the right to collective bargaining and negotiations
e. the right to engage in concerted activities for mutual aid and protection
With the enactment of BP 386, unfair labor practices are deemed criminal offenses.
The civil aspect of all cases involving unfair labor practices, which may include claims for actual, moral,
exemplary and other forms of damages, attorney’s fees and other affirmative relief, shall be under the
jurisdiction of the Labor Arbiters.
No criminal aspect for unfair labor practice may be instituted without a final judgment finding that an
unfair labor practice was committed, having been first obtained in the administrative proceedings before
the Labor Arbiters. During the pendency of such administrative proceedings, the running of the period of
prescription of the criminal offense (within 1 year from accrual of such ULP) shall be considered
interrupted. However, the final judgment in the administrative proceedings shall not be binding in the
criminal case nor be considered as an evidence of guilt but merely as a proof of compliance of the
requirements therein set forth.
An unfair labor practice cannot be committed by or against a managerial employee in view of their
disqualification from joining a union unless they are acting as agents of the employer in the commission
of an unfair labor practice.
Thus, an unfair labor practice can be committed only against an employee who exercises or has exercised
his right to self-organization. It cannot be committed against an employee who is not connected with any
labor organization, much less against an employee who has not attempted to join a labor organization nor
against an employee who has not assisted or contributed to the formation of a labor organization.
Burden of proof.
It is the union who has the burden of proof to present substantial evidence to support its allegations of an
unfair labor practices committed by the employer.
In the enforcement of the civil aspects of unfair labor practice, the evidence required is only substantial
evidence. However, in the prosecution of the criminal aspects, proof beyond reasonable doubt is required.
Two kinds of ULPs:
1. ULP committed by employer
2. ULP committed by the union
Unfair labor practices of employers.
It shall be unlawful for an employer to commit any of the following unfair labor practices:
(a) To interfere with, restrain or coerce employees in the exercise of their right to self-organization;
(b) To require as a condition for employment that a person or an employee shall not join a labor
organization or shall withdraw from one to which he belongs (yellow-dog contract).
(c) To contract out services or functions being performed by union members when such will interfere
with, restrain or coerce employees in the exercise of their right to self-organization;
(d) To initiate, dominate, assist or otherwise interfere with the formation or administration of any labor
organization, including the giving of financial or other support to it or its organizers or officers (company
or captive unionism)
(e) To discriminate in regard to hire or tenure of employment or any term or condition of employment in
order to encourage or discourage membership in any labor organization. Nothing in this Code or in any
other law shall prevent the parties from requiring membership in a recognized collective bargaining agent
as a condition for employment, except of those employees who are already members of another union at
the time of the signing of the collective bargaining agreement. Employees belonging to an appropriate
collective bargaining unit who are not members of the recognized collective bargaining agent may be
assessed a reasonable fee equivalent to the dues and other fees paid by members of the recognized
collective bargaining agent, if such non-union members accept the benefits under the collective
agreement: Provided, That the individual authorization required under Article 242, paragraph (o), of this
Code shall not apply to non-members of the recognized collective bargaining agent;
(f) To dismiss, discharge or otherwise prejudice or discriminate against an employee for having given or
being about to give testimony under this Code;
(g) To violate the duty to bargain collectively as prescribed by this Code;
(h) To pay negotiation or attorney’s fees to the union or its officers or agents as part of the settlement of
any issue in collective bargaining or any other dispute; or
(i) To violate a collective bargaining agreement.
The provisions of the preceding paragraph notwithstanding, only the officers and agents of corporations,
associations, or partnerships who have actually participated in, authorized or ratified unfair labor practices
shall be held criminally liable.
Employer’s interference
Interference is used to embrace both restraint and coercion. Interference includes:
Espionage or surveillance of union members
Accepting an offer by the majority of the employees to abandon their union in return for a wage
increase
Sponsoring a field trip for its employees, to the exclusion of union members, before the schedule
certification election
Blacklisting or threatening to blacklist employees
Totality of conduct test.
The test of whether or not an employer has interfered with and coerced employees is whether the
employer has engaged in conduct that would reasonably tend to interfere with the free exercise of the
employees’ right to self-organization. Expressions of opinion by an employer which, though innocent in
themselves, frequently were held to be culpable because of circumstances under which they were uttered,
the history of the particular employer’s labor relations or anti-union bias or because of their connection
with an established collateral plan of coercion or interference. In other words, statements not coercive on
their face might become coercive when uttered in a background of anti-union unfair labor practices. This
is known as the totality of conduct test which simply means that “many little acts when totalized or put
together will place the conduct in an unfair labor practice category.”
Restraint and coercion
These may be economic, physical or psychological. Economic coercion may be exerted through wage
increase, particularly prior to election; granting of bonuses to strikers who return to work while
withholding it from those continuing to strike; promising permanent employment rather than lay-offs,
promotions and vacations with pay; evictions from company houses.
Other forms of coercion include isolating a union president to inhibit his activities, preventing union
meetings, attempting to induce employees to resign from a union, and assisting employees in resigning
from the union.
Yellow-dog contract.
One of the unfair labor practice committed by an employer against an applicant to the job is to require as
a condition of employment that:
a. That he is not a member of a union
b. If a member, he will resign
c. He agrees, as a condition of employment, not to join a union during the course of his employment
It is called a yellow-dog contract because any person who signed such contract was a cowardly dog
because he had abandoned his guaranteed rights to self-organization. He becomes subservient, like a dog.
It should be noted that this is one of the cases of an unfair labor practice that may be committed in the
absence of an employer-employee relationship
Illustration:
A personnel manager interviews an application who is a member of National Labor Union (NLU).
Thereafter, he was required to resign from NLU. This is a clear case of unfair labor practice. If he was
required to resign from other associations, not the labor union, it is not an unfair labor practice.
Company or captive unionism.
The LC provides that it shall be an unfair labor practice for an employer “to initiate, dominate, assist or
otherwise interfere with the formation or administration of any labor organization, including the giving of
financial or other support to it or its organizers or officers.”
This is designed to protect the right of employees to bargain collectively through representatives of their
own choosing by prohibiting any form of interference with the formation or administration of a labor
union.
When the employer becomes more friendly to the union, it is “captive unionism” which is a form of
unionism. Here, the employer “captures” the union in a more subtle and sophisticated way than by
controlling the union mechanism. He captures the union by kindness, by maintaining a close personal
relationship with union officers, by dampening its militancy through concessions.
Instances of domination:
 Financial support to the union. An employer commits unfair labor practice if he defrays the union
expenses or pays the attorney’s fees to the attorney wo drafts or drafted the constitution and by-
laws of unions
Employer encouragement and assistance. Immediately granting the union exclusive recognition
as a bargaining agent without determining whether the union represents the majority of the
employees is an illegal form of assistance amounting to unfair labor practice
Supervisory assistance. Soliciting membership, permitting union activities during working time
or coercing employees to join the union by threats of dismissal or demotion
Passivity of the union. Proof of domination may take place if the union makes no effort to
procure a CBA, or if it accepts an agreement lacking the usual substantive provisions. Also,
failure of the union to hold meetings, elect officers, collect dues, or to adopt a constitution and
by-laws are indicia of domination
Company domination is shown by the following: the management attended the election of union
officers; no member of the union was dismissed despite the adoption of retrenchment policy
Contracting out of services being performed by union members
It is an unfair labor practice for an employer to contract out services or functions being performed by
union members when such will interfere with, restrain or coerce employees in the exercise of their right to
self-organization. Contracting out of services is not per se illegal unless it is designed to frustrate the right
of workers to self-organization.
Acts of discrimination.
Discrimination is a relative term connoting unequal treatment. The provision against discrimination was
enacted purposely to insure that union and non-union workers will be accorded fair and equal treatment
by employers. Discrimination manifests itself in a variety of situations such as in the following:
A lay-off is not per se an unfair labor practice unless it is committed because of union activities.
If most of those laid off are union members, retaining the bulk of the non-union members is held
discriminator
Closure or lockout or shutdown or mass discharge, because of union activities, is discrimination.
Similarly, shutdown made after employees joined the union and demanded bargaining rights
constitutes discrimination
Delayed reinstatement is a form of discrimination in rehiring. Conditional reinstatement such as
requiring a renunciation of union affiliation and signing a yellow-dog contract has been held
discriminatory
Threat to close the plant because of union activities
Refusal to bargain.
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.
The following acts are held to constitute “refusal to bargain:”
Transferring operation to elude the union (run-away shop). Run-away shop is an unfair labor
practice of management which usually takes place by effecting the transfer of ownership, the
plant itself, or its equipment and machines or by temporarily closing its business purposely to
bust the union or to evade payment of its legitimate obligations.
Refusal to accept requests to bargain. Where the employer did not even bother to submit an
answer to the bargaining proposals of the union, there is a clear evasion of the duty to bargain
collectively. Failing to comply with the mandatory obligation to submit a reply to the union’s
 proposals, the employer violated its duty to bargain collectively, making it liable for unfair labor
practice. As such, the union’s draft CBA proposal can be unilaterally imposed upon the employer
to govern their relationship.
Sending bargaining representatives who are not authorized to make any kind of agreement
Engaging in surface bargaining. Surface bargaining is defined as going through the motions of
negotiating without any legal intent to reach an agreement. The unlawful surface bargaining is
usually difficult to be determined as it involves a question of the intent of the party in question,
and usually such intent can only be inferred from the totality of the challenged party’s conduct
both at and away from the bargaining table. It involves the question of whether or not the
employer’s conduct demonstrates an unwillingness to bargain in good faith or is merely hard
bargaining. Simply stated, in surface bargaining the employer appears to negotiate but avoids to
reach an agreement.
Gross violations of the CBA.
Gross violations of a CBA shall mean flagrant and/or malicious refusal to comply with the economic
provisions of such agreement.
The CBA that provides for a wage increase should be granted to all employees regardless of employment
status. Thus, refusal to grant such negotiated increase pursuant to the CBA is an unfair labor practice as it
violates the economic provisions of the CBA.
Dismissal for giving testimony.
It is an unfair labor practice for an employer to dismiss, discharge or otherwise prejudice or discriminate
against an employee for having given or being about to give his testimony under the LC. This is the only
unfair labor practice not related to the right of workers to self-organization and collective bargaining.
Thus, an employer committed an unfair labor practice when it dismissed a worker who has testified in the
hearing of a certification election case despite its prior request for the employee to refrain from testifying
in the said proceeding which was accompanied with a promise of reinstatement if he followed said
request.
Union security clause in the CBA.
Article 259 of the Code provides “nothing in this Code or in any other law shall prevent the parties from
requiring membership in a recognized collective bargaining agent as a condition for employment, except
those employees who are already members of another union at the time of the signing of the collective
bargaining agreement.”
Common forms of union security:
a. Closed-shop agreement whereby only union members can be hired and workers must remain
union members as a condition of continued employment. It applies to persons to be hired, to
employees who are not yet members of any labor organization, to the employees that are
employed after the CBA had been entered into, and to old employees who are not members of
any labor union at the time the said CBA was entered into. In other words, it does not apply to an
employee who is already a member of a labor union different from the union that entered into a
CBA with the employer.
b. Union shop. Workers under this agreement are not required to be union members when hired; but
to maintain continued employment, they must continue to pay union dues and must become union
members also after some time.
c. Maintenance of membership. Under this clause, employees who are union members as of the
effective date of the agreement, or who thereafter become members, must maintain union
 membership as a condition for continued employment until they are promoted or transferred out
of the bargaining unit or the agreement is terminated.
d. Agency shop. Employees who do not join the union must pay agency fees as a condition of
employment to help defray the union expenses as a bargaining agent for the group or all
employees. This is otherwise known as the anti-free rider or anti-hitchhiker. Under the Holy
Cross ruling, the legal basis of the union’s right to agency fees is neither contractual nor
statutory, but quasi-contractual, deriving from the established principle that non-union employees
may not unjustly enrich themselves by benefiting from employment conditions negotiated by the
bargaining union.
e. Preferential hiring agreement. An agreement between the employer and the union whereby the
former is obliged to give preference to the members of the latter who are qualified is preferential
hiring agreement.
f. Hiring agreement. An agreement whereby the employer is obliged to hire only those union
members without further agreement of requiring union members to maintain their membership as
a condition sine qua non for employment
g. Modified union shop. It is a contract which requires all new employees to become union members
for some time after employment but does not require present employees to join the union. Those
who have become union members shall maintain their membership as a condition of continuous
employment. Modified union shop cannot bind the minority union and the so-called conscientious
objector
h. Closed-shop with a closed union. It is a form of closed-shop where union membership is limited
and entry of new members is restricted
i. Closed-shop with an open union. It is a form of closed-shop where union membership is open and
entry of new members is unlimited
j. Percentage union shop. It is a contract between the union and the employer whereby the latter
agrees that a certain percentage of his employees shall become union members in good standing
k. Union registration clause or exclusive bargaining rights. Under this category, the employer
recognizes the majority union as the exclusive bargaining agent in the premises for all employees
–members and non-union members, in the appropriate bargaining unit. This is also known as the
exclusive rights rule or doctrine of union monopoly.
l. Check-off agreement. The check-off provision strengthens any form of union security. It allows
the employer to withhold/deduct union dues from a member’s pay and transmit the money
directly to the union for its continuous existence.
Principle of union security clauses.
a. Protection. Union security agreements shield union members from improvident, whimsical and
abusive exercise of management prerogatives.
b. Benefits. Once the CBA is signed by the parties, the employees are coerced to join the contracting
union which enlarges the latter’s membership.
c. Self-preservation. The union security clause strengthens the union through selective acceptance of
new members on the basis of commitment and loyalty that insure the mass-base support of the
union
UNFAIR LABOR PRACTICES OF LABOR ORGANIZATIONS
It shall be unlawful for labor organization, its officers, agents, or representatives to commit any of the
following unfair labor practices;
(a) To restrain or coerce employees in the exercise of their right to self-organization: Provided, That the
labor organization shall have the right to prescribe its own rules with respect to the acquisition or
retention of membership;
(b) To cause or attempt to cause an employer to discriminate against an employee, including
discrimination against an employee with respect to whom membership in such organization has been
denied or terminated on any ground other than the usual terms and conditions under which membership or
continuation of membership is made available to other members;
(c) To violate the duty or refuse to bargain collectively with the employer, provided that it is the
representative of the employees;
(d) To cause or attempt to cause an employer to pay or deliver or agree to pay or deliver any money or
other things of value, in the nature of an exaction, for services which are not performed or not to be
performed, including the demand for a fee for union negotiations;
(e) To ask for or accept negotiation or attorney’s fees from employers as part of the settlement of any
issue in collective bargaining or any other dispute; or
(f) To violate a collective bargaining agreement.
The provisions of the preceding paragraph notwithstanding, only the officers, members of governing
boards, representatives or agents or members of labor associations or organizations who have actually
participated in, authorized or ratified unfair labor practices shall be held criminally liable.
Restraint or coercion of employees.
It is an unfair labor practice for a union to restrain or coerce employees in the exercise of their right to
self-organization. The following acts of a union and its agents constitute illegal restraint and coercion:
a. Preventing employees who do not desire to join a union strike for going to and returning from
work during the strike
b. Pickets threatening employees with physical violence who desire to enter the plant
c. Union agent pushing a non-striker against the wall and threatening him with bodily harm
d. Preventing non-strikers’ ingress to the plant by standing and threatening them with physical harm
Featherbedding activities (make-work activities)
It is unfair labor practice of a union through coercive practices such as strikes or boycotts, or extortion for
exacting or attempting to exact from an employer, compensation for service not rendered or not intended
to be rendered. Simply, this is an extortion of money or other things of value for services performed or
underperformed by the labor union.
Instances of featherbedding:
The union requires the employer to use an excessive number of men of the job and to pay some
men he is not using
The union sets a limit on the output or speed of work of a worker
The union requires unnecessary work to be performed more than once, such as in construction
and printing industries
The union requires employer to pay “stand-by” employees.
Discrimination against employees.
It is an unfair labor practice for a labor organization to cause or attempt to cause an employer to
discriminate against an employee, including discrimination against an employee with respect to whom
membership is such organization has been denied or to terminate an employee on any ground other than
the usual terms and conditions under which membership or continuation of membership is made available
to other members.
Violation of duty to bargain collectively.
It is an unfair labor practice for a labor organization to violate the duty, or refuse to bargain collectively
with the employer, provided it is the representative of the employees. Thus, a labor organization commits
unfair labor practice if it declares a strike to compel an employer to negotiate a CBA with it during the
pendency of a petition for certification election. Such act is violative of the employer’s basic right to
bargain collectively only with the representative, supported by the majority of its employees, which is the
certified collective bargaining agent within the premises.
Payment of negotiation or attorney’s fees.
It is a unfair labor practice for an employer to pay negotiation fees for a labor organization to ask for or
accept negotiation or attorney’s fees from employers as part of the settlement of any issue in collective
bargaining or any other dispute. This is designed to insure the autonomy of the bargaining process so that
the resulting contract provides for substantial economic terms for all employees in the bargaining unit. To
allow union officers, negotiators or attorneys to receive fat allowances or fees from employers may lead
to the signing of a CBA which is inadequate or incomplete. This type of CBA is known as a sweetheart
contract, i.e. an agreement negotiated between the employer and the union granting concession to the
management or the union, whose purpose is to promote the welfare of union officers and not the rank-
and-file employees represented by them. Here, the union leaders settle for less, receiving a kickback in
return from the employer.
Closely allied with the sweetheart contract is the top-down contract which is an agreement concluded
between the management and the union officers without regard to the welfare of the employees they
represent. For this, the notorious and unscrupulous union officers must be expelled.
Violation of the CBA.
The CBA is not a mere contract but the law between the parties which must be complied with in good
faith. Thus, a strike in violation of the “no-strike no-lockout clause” in the CBA is illegal and constitutes
unfair labor practice on the part of the employees. Furthermore, a strike staged in violation of the CBA
providing for conclusive arbitration clause also constitutes an unfair labor practice.
Thus, disregard of the grievance and voluntary procedures in the CBA is an unfair labor practice.
Engaging in blue-sky bargaining
Blue-sky bargaining is defined as making exaggerated or unreasonable proposals. Thus, if the union
requires exaggerated or unreasonable economic demands, it is guilty of an unfair labor practice.
Collective Bargaining and Administration of Agreements
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 agreements if requested by either party but such duty does
not compel any party to agree to a proposal or to make any concession.
Thus, a collective bargaining agreement refers to a contract executed upon request of either the employer
or the exclusive bargaining representative incorporating the agreement reached after negotiations with
respect to wages, hours of work and all other terms and conditions of employment, including mandatory
provisions for grievance and arbitration machineries.
Characteristics of collective bargaining.
a. Continuing legal relationship. It is a continuing legal relationship for it consists of a series of
contract negotiations and of the day-to-day negotiations under the grievance machinery
procedure. It does not end with the signing of the CBA
b. Process of adjustment. It is a process of adjustment or mutual accommodation between the
employer and the union in which acceptance is an important ingredient. In other words, the
negotiating parties should bargain in good faith.
c. Contract of reasonable benefits. It is a means of contracting reasonable benefits on terms and
conditions of employment. Thus, the CBA should not provide for benefits below the standards
provided by law. Otherwise, it becomes a sweetheart contract
d. Contract of relative equality. It is not only a process of fixing the terms of employment but also a
contract providing for relative equality of bargaining power where the employer is compelled to
deal with the employees as a group rather than as isolated individuals.
e. Agency of participatory democracy. It is an agency of participatory democracy in labor relations
because workers are allowed to participate in policy and decision-making process with the
management.
Usual contents of a CBA
a. Preamble
b. Union recognition. This provides that the employer recognizes the union as the exclusive and sole
bargaining representative of the employees in the bargaining unit
c. Management prerogatives, such as rights to promote, suspend, transfer, lay-off
d. Union prerogative, such as the right to discipline members
e. Hours of work and scale of wages
f. Promotions
g. Leaves of absence
h. Union security clause
i. Grievance machinery and voluntary arbitration procedures
j. Check-off
k. Family planning
l. Labor education
m. No-strike, no-lockout clause – an agreement that the union shall not stage a strike and the
employer shall not declare a lockout on the ground of bargaining deadlock during the lifetime of
the CBA. It does not apply to an unfair labor practice strike
n. Escalator clause – an agreement which provides that wages shall gradually increase in the even of
sudden increase in consumer price or cost-of-living index
o. Drug-free provision – requires the union to police its own rank and see to it that union members
do not use prohibited drugs
 p. Waiver and completeness of agreement provides that with the signing of the CBA, the parties
have actually waived their claims and counter-claims they may have asserted against each other
and that the agreement is the full and complete settlement thereof.
Posting of CBA
In case of single-enterprise bargaining, the newly-concluded CBA is required to be posted in 2
conspicuous places in the work premise for a period of at least 5 days prior to its ratification by the
majority of the members of the bargaining unit
In case of multi-employer bargaining, two signed copies of the CBA should be posted for at east 5 days in
2 conspicuous areas in each workplace of the employer units concerned. Necessarily, said CBA should
affect only those employees in the bargaining units who have ratified it.
Posting of the CBA is a mandatory requirement and non-compliance of each requirement will render the
CBA ineffective.
Ratification of the CBA.
The law requires the CBA to be ratified by the majority of the members of the bargaining unit which is
represented by the collective bargaining agent in the bargaining negotiations.
Registration of the CBA
The CBA is required to be registered with the BLR or the DOLE and non-compliance therewith will not
bar certification election.
Procedures in collective bargaining.
a. Preliminary process – serving a written notice to the other party of its bargaining proposals. The
other party is required to reply (counter-bargaining proposals) not later than 10 days upon receipt
of such notice.
b. Negotiation – conducted not later than 10 calendar days from the date of request for conference:
* request for conference should differences arise on the basis of such notice and reply;
* if dispute is not settled, NCMB intervenes; and
* NCMB exerts all efforts to settle dispute
c. Execution – signing and execution of the CBA by the parties
d. Publication – posting a copy of the newly-concluded CBA in at least 2 conspicuous places in the
company
e. Ratification – ratification of the new CBA by at least a majority of the members of the bargaining
unit.
f. Registration – 5 copies of the CBA should be submitted with other documentary requirements
and payment of registration fee to the BLR or Regional Office of the DOLE
g. Administration – Joint administration of the CBA by the employer and the bargaining agent
during the lifetime of such CBA
h. Interpretation and enforcement
Written notice required in demand to bargain.
A demand to bargain should be in writing. When a part desires to negotiate an agreement, it should be
expressed through a written notice upon the other party with a statement of its proposals.
Failure to submit reply within 10 calendar days
The procedure in collective bargaining is mandatory. Thus, the employer’s failure to make a timely reply
to the proposals presented by the union within 10 calendar days is indicative of its utter lack of interest in
bargaining with the union. Its refusal to make a counter-proposal for CBA negotiation is an indication of
its bad faith and it is a clear evasion of the duty to bargain collectively which is an unfair labor practice.
For failure to submit any counter-proposal to the CBA proposed by its employees’ certified bargaining
agent, the employer had thereby lost its right to bargain the terms and conditions of the CBA. Thus, the
CBA proposed by its employees’ union- lock, stock and barrel is imposed upon an erring employee.
Duty to bargain collectively in the absence of collective bargaining agreements.
In the absence of an agreement or other voluntary arrangement providing for a more expeditious manner
of collective bargaining, it shall be the duty of the employer and the representatives of the employees to
bargain collectively in accordance with the provisions of this Code.
Jurisdictional pre-conditions for collective bargaining.
The mechanics of collective bargaining is set in motion only when the following jurisdictional
preconditions are present, namely:
a. Possession of the status of majority representation of the employees’ representative in accordance
with any of the means of selection or designation provided for by the LC
b. Proof of majority representation
c. A demand to bargain
** the pre-conditions require that the legitimate labor organization is the certified bargaining agent in the
bargaining unit.
A pending cancellation proceeding against a union is not a bar to set in motion the mechanics of
collective bargaining. If a certification election may still be ordered despite the pendency of a petition to
cancel the union’s registration certificate, more so the collective bargaining process should continue
despite its pendency. The majority status of the union is not affected by the pendency of a petition for
cancellation pending against it. Unless its certificate of registration and its status as the certified
bargaining agent are revoked, the employer is, by express provision of the law, duty bound to collectively
bargain with the union.
Good faith or bad faith bargaining.
The law does not compel the parties to reach an agreement. It does contemplate that both parties will
approach the negotiations with an open and fair mind and sincerely endeavor to overcome obstacles or
difficulties existing between them. Mere pretended bargaining will not suffice. It shall make a reasonable
effort to reach expression in a later decision, with its stress on the incontestably sound principle that the
employer had a duty to negotiate in good faith with his employees’ representatives, to match their
proposals, if unacceptable, with counter-proposals; and to make every reasonable effort to reach an
agreement. Thus, to offer a union a contract saying “take it or leave it” is not bargaining collectively and
in good faith within the meaning of the law.
Stalling the negotiations is not good faith bargaining.
Stalling the negotiations by a series of postponements, non-appearance at the hearing conducted, and
undue delay in submitting its financial statements, lead to a conclusion that it is unwilling to negotiate and
reach an agreement with the union. The employer has not, at any instance, evinced good faith or
willingness to discuss freely and fully the claims and demands set forth by the union much less justify its
opposition thereto. However, the employer is under no legal obligation to initiate contract negotiation.
CBA, a contract in personam; effect on transferee in good faith.
Labor contracts such as employment contracts and CBAs, being in personam, are binding only between
the parties and not enforceable against a transferee or a buyer in good faith.
Boulwareism, an unfair labor practice.
Employer’s bargaining proposal on a rigid “fair-and-firm” offer or on a “take-it or leave-it” basis is
illegal, known as Boulwareism. This technique is calculated to disparage the union and to impose, without
substantial alteration (employer’s) fair and firm proposal, rather than to satisfy the true standards and
good faith bargaining. The “take-it or leave-it” offer was designed to create an impression that the
workers do not need a union at all to resolve their problems. Indeed, it was a management scheme of
giving little to prevent giving a lot. Simply stated, this bargaining technique violative of good faith
bargaining, is an unfair labor practice under the law.
Duty to bargain collectively when there exists a collective bargaining agreement.
When there is a CBA, the duty to bargain collectively shall also mean that neither party shall terminate or
modify such agreement during its lifetime. However, either party can serve a written notice to terminate
or modify the agreement at least 60 days prior to its expiration date. It shall be the duty of both parties to
keep the status quo and to continue in full force and effect the terms and conditions of the existing
agreement during the 60-day period and/or until a new agreement is reached by the parties.
Contract-bar rule; 60-day freedom period.
The existence of a CBA duly certified by the BLR serves as a bar to the filing of a petition for
certification election or a motion for intervention within the freedom period or 60 days prior to the expiry
date of the agreement, the purpose of the rule being to ensure stability in the relationship of the workers
and the management by preventing frequent modifications of any CBA earlier entered into by them in
good faith and for the stipulated original period.
Automatic renewal clause; principle of CBA continuity
Despite the lapse of the formal effectivity of the existing CBA, the law still considers the same as
continuing gin force and effect until a new CBA shall have been validly executed, and therefore the
contract-bar rule still applies.
Status quo during the 60-day freedom period.
It shall be the duty of both parties to keep the status quo while they are in the process of working out their
respective proposal and counter-proposal and to continue in full force and effect the terms and conditions
of the existing CBA during the 60-day period until a new CBA is reached by the parties. The rule
presupposes that neither party is guilty of bad faith. If the employer evades the duty to bargain, the
proposed CBA presented by the union can be unilaterally imposed upon the former.
CBA, law between the parties (law of the plant)
The terms and conditions of the CBA constitute the law between the parties. It is not, however, an
ordinary contract to which is applied the principles governing ordinary contracts. The same can be
modified by the parties only within the 60-day freedom period which is the allotted time to file the
petition for certification election in order to determine the majority status of the collective bargaining
agent.
The CBA is binding upon all employees of the company covered by the bargaining unit whether union
members or not- because it is the law of the plant.
Terms of a collective bargaining agreement.
The life span of a CBA is 5 years as far as the representation aspect is concerned. However, the workers
may renegotiate on other provisions of the CBA not later than 3 years after its execution. If the parties
concluded an agreement within the 6-month period, the effectivity date of such agreement shall retroact to
the day immediately following the expiration date of the term of such other provisions as fixed in the
CBA. But if the agreement is arrived at beyond 6 months, the parties shall agree on its effectivity day.
Representation aspect.
The representation aspect refers to the identity and majority status of the union that negotiated the CBA as
the exclusive bargaining agent of the appropriate bargaining unit. The representation status of the
incumbent bargaining agent is reckoned from the effectivity of the CBA which means that no petition for
certification election may be entertained during the lifetime of the CBA except within the 60-day freedom
period immediately preceding the expiration date of the 5-year term.
Such representation status acquired by an incumbent bargaining agent either through single-enterprise
bargaining or multi-employer bargaining could not be affected by a subsequent CBA signed between the
same bargaining agent and the employer during the same 5-year period.
Renegotiation of the CBA not later than 3 years.
Article 264 of the LC allows the parties to renegotiate all other provisions of the CBA, except
representation aspect, not later than 3 years of the 5-year lifetime. Such renegotiation should only pertain
to the terms and conditions of the parties’ relationship for the last remaining 2 years of the 5-year period
of the CBA.
“All other provisions” refers to all CBA provisions whether they are economic or non-economic in
nature. The only exception is the representation status of the incumbent bargaining agent which can be
contested only during the 60-day freedom period.
On the other hand, the phrase “not later than 3 years” or “not later than the 3 rd year” simply means that all
the economic and non-economic provisions of the CBA, except representation aspect, may be
renegotiated before the end of the 3rd year.
Note that the parties can freely stipulate on economic and non-economic terms and conditions of
employment beyond the 3-year period; say, 5 years which is co-terminus with the 5-year representation
status of the exclusive bargaining agent. If the parties fail to renegotiate on “all other provisions” before
the end of the third year, such provisions shall continue to be in full force and effect until a new CBA is
concluded.
Retroactivity of the CBA.
Article 265 of the LC which applies only to cases where the CBA is voluntarily concluded by the parties,
provides the following rules on retroactivity:
a. The effectivity of the CBA shall retroact to the day immediately after the date of expiration of the
old CBA in case the new CBA is concluded and entered into within 6 months from the said
expiration date
b. If the new CBA is entered into beyond 6 months from the expiration date of the old CBA, the
parties are given the right to negotiate the duration of the retroactivity.
Effect of extended term of CBA on representation status.
While the parties may agree to extend the CBAs original 5-year term together with all other CBA
provisions, any such amendment or term in excess of 5 years will not carry with it a change in the union’s
exclusive collective bargaining status. By express provision of Art. 265, the exclusive bargaining status
cannot go beyond 5 years and the representation status is a legal matter not for the workplace parties to
agree upon. In other words, despite an agreement for a CBA with a life of more than 5 years, either, as an
original provision or by amendment, the bargaining union’s exclusive bargaining status is effective only
for 5 years and can be challenged within 60 days prior to the expiration of the CBA’s first 5 years.
In the event, however, that the parties, by mutual agreement, enter into a renegotiated contract with a term
of 3 years or one which does not coincide with the 5-year term and said agreement is ratied by majority of
the members in the bargaining unit, the subject contract is valid and legal and therefore, binds the
contracting parties. The same will, however, not adversely affect the right of another union to challenge
the majority status of the incumbent bargaining agent within 60 days before the lapse of the original 5-
year term of the CBA.
Substitutionary doctrine
Where the collective bargaining agent is changed during the lifetime of an agreement, the new agent takes
the place of the old and administers the agreement which subsists in spite of the change in representation.
In other words, the employees can change their agent, but the CBA which is still subsisting, continues to
bind the employees up to its expiration date. They may, however, bargain for the shortening of said
expiration date. Note that the only consideration for the substitutionary doctrine is the employee’s interest
in the existing bargaining agreement, the agent’s (union’s) interest never enters into the picture.
Where the business operation of predecessor-employer is continued by the successor-employer in an
essentially unchanged manner, all the terms and conditions of the CBA entered into between the
predecessor-employer and the bargaining agent are binding on the successor-employer, even though labor
contracts are in personam or that there is no privity of contract between the successor-employer and the
bargaining agent.
Disaffiliation of a local union from the federation does not affect the enforceability and administration of
a CBA.
CBA benefits extend to non-union members.
The benefits of a CBA extend to the laborers and employees in the collective bargaining unit, including
those who do not belong to the chose bargaining labor organization. However, they are required to pay
fees equivalent to the amount or dues paid by union members pursuant to Art. 259, in order to help defray
the bargaining and grievance machinery costs.
Deadlock in CBA renegotiation
A deadlock is synonymous with impasse or a standstill which presupposes reasonable effort at good faith
bargaining but despite noble intentions does not conclude an agreement between the parties. In case of a
deadlock in the renegotiation of the CBA, the parties may exercise the following:
a. Call upon the NCMB to intervene for the purpose of conducting conciliation or preventive
mediation
b. Refer the matter for voluntary arbitration or compulsory arbitration
c. Declare a strike or lockout upon compliance of the legal requirements. This is the remedy of last
resort.
Ten-year suspension of CBA negotiations legally tenable.
The right to free collective bargaining includes the right to suspend it. Where the union, in the exercise of
its right to collective bargaining, opted for the 10-year suspension of the CBA, the same does not
contravene the protection to labor policy of the Constitution. The suspension was the result of voluntary
collective negotiations undertaken in the light of the severe financial situation faced by the employer
which might lead to the latter’s closure.
The agreement does not violate the 5-year representation limit mandated by Art. 265. Under said article,
the representation limit for the exclusive bargaining agent applies only when there is an extant CBA in
full force and effect. In the instant case, the parties agreed to suspend the CBAs and put in abeyance the
limit on the representation period. (Rivera v. Espiritu, 374 SCRA 351)
Labor disputes
Labor dispute includes any controversy or matter concerning terms or conditions of employment or the
association or representation of persons in negotiating, fixing, maintaining, changing or arranging the
terms and conditions of employment, regardless of whether or not the disputants stand in the proximate
relation of employers and employees.
The test in determining whether or not a controversy falls within the meaning of a labor dispute rests on
whether such controversy involves matters affecting tenure, terms or conditions of employment including
representation.
Types of labor disputes.
a. Organizational or intra-union disputes. Disputes arising from the organization of trade unions or
internal disputes within the labor organizations
b. Representation or inter-union disputes. Disputes related with determination of the exclusive
bargaining agent of the employees in an appropriate bargaining unit for collective bargaining
purposes.
c. Interest or economic disputes. Disputes arising from negotiation on terms and conditions of
employment which form part of a CBA.
d. Rights dispute. Disputes dealing with interpretation or application of CBAs, union or individual
grievances, including the enforcement of rights under the law or contract.

Injunction prohibited.
No temporary or permanent injunction or restraining order in any case involving or growing out of labor
disputes shall be issued by any court or other entity, except as otherwise provided in Articles 225 and 279
of the Code.
The first exception, Art. 225(e) of the LC expressly confers the NLRC the power to enjoin or restrain
actual and threatened commission of any or all prohibited or unlawful acts, or to require the performance
of a particular act in any labor dispute which, if not restrained or performed forthwith, may cause grave or
irreparable damage to any party or render ineffectual any decision in favor of such party.
The second exception is when the labor organization or the employer engages in any of the prohibited
activities in Art. 279.
Pursuant to Art. 225(e) of the LC, the coercive measure of injunction may also be used to restrain an
actual or threatened unlawful strike. In the case of SMC v. NLR, 287 SCRA 192 (1998), where the same
issue of NLRC’s duty to enjoin an unlawful strike was raised, it was ruled that the NLRC committed
grave abuse of discretion when it denied the petition for injunction to restrain the union from declaring a
strike based on non-strikeable grounds.
NCMB has no coercive power of injunction.
The NCMB converted the notice of strike into a preventive mediation case as it found that the real issues
raised are non-strikeable. In accordance with the Implementing Rules of the LC, the said conversion has
the effect of dismissing the notices of strike. When the NCMB ordered the preventive mediation had
thereupon lost the notices of strike it had filed, it still defiantly proceeded with the strike while mediation
was ongoing, and notwithstanding the letter-advisories of NCMB warning it of its lack of notice of strike.
Such disregard of the mediation proceedings was a blatant violation of the Implementing Rules, which
explicitly oblige the parties to bargain collectively in good faith and prohibit them from impeding or
disrupting the proceedings. The NCMB having no coercive powers of injunction, it was only proper for
petitioner to seek recourse from the public respondent NLRC which has the power to issue an injunctive
relief. (SMC v. NLRC, G.R. No. 119293, June 10, 2003)
Violation of the conclusive arbitration clause in the CBA, subject of injunctive relief.
Strikes held in violation of the terms contained in the CBA are illegal especially when they provide for
conclusive arbitration clause (grievance and arbitration procedures). These agreements must be strictly
adhered to and respected if their ends have to be achieved. When CBA provisions on grievance and
arbitration proceedings were not observed, injunctive relief is available.
No notice of strike; injunctive relief proper.
A declaration of strike without first having filed the required notice of strike is a prohibited activity,
which may be prevented through an injunction.
Entities or persons authorized to issue injunctions or restraining orders.
a. Labor arbiters – only in cases falling under their original and exclusive jurisdiction
b. NLRC or any division –has the power to enjoin or restrain actual and threatened commission of
any or all prohibited or unlawful acts, or to require the performance of a particular act in any
labor dispute which, if not restrained or performed forthwith, may cause grave or irreparable
damage to any party or render ineffectual any decision in favor of such party.
c. BLR – The BLR, through its Director and Med-arbiters, can issue injunctions or restraining
orders in cases falling under their original and exclusive jurisdiction
d. President – The President of the Phils. 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 labor dispute in such industries in order to settle or terminate the
same
e. Secretary - When, in his opinion, there exists a labor dispute causing or likely to cause a strike or
lockout in an industry indispensable to the national interest, the Secretary of Labor may assume
jurisdiction over the dispute and decide it or certify the same to the Commission for compulsory
arbitration. Such assumption or certification shall have the effect of automatically enjoining the
intended or impending strike or lockout as specified in the assumption or certification order. 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.
** regular courts cannot issue injunction on matters that partake the nature of a labor dispute.
NOTE: No strike or lockout shall be declared after assumption of jurisdiction by the President or
Secretary or after certification or submission of the dispute to compulsory or voluntary arbitration or
during the pendency of cases involving the same grounds for the strike or lockout.
The right to picket can be enjoined at the instance of innocent bystanders; Liwayway Publishing
Doctrine
While peaceful picketing is entitled to protection as an exercise of free speech, the courts are not without
power to confine or localize the sphere of communication or the demonstration to the parties of a labor
dispute, including those with related interest, and to insulate establishments or persons with no industrial
connection or having interest totally foreign to the context of the labor dispute. Thus, the right may be
regulated at the instance of third parties or innocent bystanders as it appears that the inevitable result of its
exercise is to create an impression that a labor dispute with which they have no connection or interest
exists between them and the picketing union or constitute an evasion of their rights. (PAFLU v. Cloribel,
27 SCRA 465)
Likewise, it can be enjoined if it carried out with the use of violence or other illegal means. (Mortera v.
CIR, 97 Phil. 465)
In another case, the SC ruled that a sub-lessee of a part of the premises of a company against which a
picket has been conducted can file a petition for the issuance of an injunction by the courts against the
picketeers who have obstructed its trucks and its employees from entering its bodega, their being no labor
dispute between the sub-lessee and the company’s workers-picketeers (Liwayway Publishing v.
Permanent Concrete Workers’ Union, 108 SCRA 161).
Right to strike may be enjoined.
As a general rule, a strike, considered as the most effective weapon used by labor in protecting the rights
of employees to improve the terms and conditions of their employment, cannot be enjoined. However, the
same can be enjoined in the following instances:
a. The Secretary of Labor’s assumption or certification of a labor dispute in an industry
indispensable to national interest, for compulsory arbitration has the effect of automatically
enjoining the strike
b. When trade unionism and strikes are utilized to violate existing laws, misuse of these tactics can
be subject to judicial intervention in order to forestall grave injury to a business enterprise. Also,
illegal activities perpetrated during the strike can be enjoined.
Appropriate bargaining unit.
An appropriate bargaining unit is a classification of jobs or positions where 2 or more employees possess
common employment interests and conditions and which may be reasonably combined together for
purposes of collective bargaining.
A collective bargaining unit should cover only one company and not two or more. (Indophil Textile Mill
v. Calica, G.R. No. 96490, February 3, 1992)
Four-way test in determining an appropriate collective bargaining unit
a. The express will or desire of the employees test (Globe Election Doctrine) – the practice of
considering the employees’ will or desire. This doctrine arose in a case where there were 4
contending labor groups, claiming to be the proper bargaining units for employees. Finding that
each of the competing unions has an equally valid basis for their respective claims (certification)
elections were held for the specific purpose of permitting the employees in each of the several
categories of work to select which representative union will be chose as the agent in the
bargaining union. (G.R. No. L-28223, August 30 1968)
b. Community or mutuality of interest test – The basic test of an asserted bargaining unit’s
acceptability is whether or not it is fundamentally the combination which will best assure to all
employees the exercise of their collective bargaining rights. The community of interest is
 reflected in groups having a similarity of employment status, substantial similarity of work, duties
and responsibilities or similarity of compensation and working conditions.
c. Prior collective bargaining history test – The principle puts premium to the prior bargaining
history and affinity of the employees in determining the appropriate bargaining unit. However,
the existence of a prior collective bargaining history has been held as neither decisive nor
conclusive in the determination of what constitutes an appropriate bargaining unit.
d. Similarity of employment status test – There are certain positions and categories of work which,
by their very nature, place the employees in a position wherein a conflict of duties and interests
exists. Among them are supervisory employees, confidential employees, probationary employees,
etc. With respect to such employees there frequently arises the question of the right to include or
exclude them from bargaining units composed of regular employees. It was held that employees
hired on a brief, casual or day-to-day basis or for a short, definite term,, and who have no
reasonable basis for continued or renewed employment for any appreciable substantial time, are
considered to have no such mutuality of interest in a bargaining unit composed on such regular
employees.
Formation of two separate bargaining units, proper
The fourth factor (similarity of employment status test) requires that temporary, seasonal or probationary
employees should be grouped as one category and be treated separately from permanent employees. The
test of the grouping is community or mutuality of interest test.
Therefore, the trial court’s conclusion that two separate bargaining units should be formed in dealing with
the respondent company, one consisting of regular and permanent employees, and another consisting of
casual laborers and stevedores, is correct. (Democratic Labor Ass’n v. Cebu Stevedoring Co, Inc. 103
Phil. 1103)
However, piece workers on casual or day-to-day basis who do not have reasonable basis for continued or
renewed employment for any appreciable time, cannot be considered to have such mutuality of interest as
to justify their inclusion in a bargaining unit composed of permanent or regular employees (PLASLU v.
CIR, 110 Phil. 176).
Employees of the livestock-agro division of the corporation perform work entirely different from those
being performed by employees in the supermarts and cinemas. Definitely, they have very little in
common with the employees of the supermarts and cinemas. To lump all the employees of petitioner in its
integrated business concerns cannot result in an efficacious bargaining unit comprised of constituents
enjoying community or mutuality of interest (Belyca Corp. v. Ferrer-Calleja, G.R. No. 77395, November
29, 1988).
Mutuality of interest; disregard of geographical distance
The 3 plants comprising the bargaining unit are located in 3 different places, namely in Cabuyao, Laguna,
in Otis, Pandacan, Metro Manila, and in San Fernando, Pampanga is immaterial. Geographical location
can be completely disregarded if the communal or mutual interests of the employees are not sacrified. The
distance among the 3 plants is not productive of insurmountable difficulties in the administration of union
affairs. Neither are the regional differences that are likely to impede the operations of a single bargaining
representative (SMC Supervisors and Exempt Employees Union v. Laguesma, G.R. No. 110399, August
15, 1997).
There is mutuality of interest among workers in the sawmill division and logging division to justify the
formation of a single bargaining unit. This holds true despite the history of said 2 divisions being treated
as separate units and notwithstanding their geographical distance from each other (NAFTU v. Mainit
Lumber Dev. Co. Workers Union, G.R. No. 79526, December 21, 1990).
Bona fide corporate spin-off resulting in separate bargaining units
As a result of the spin-offs: i) each of the companies are run by, supervised and controlled by different
management teams including separate human resource/personnel managers; ii) each company enforces its
own administrative and operation rules and policies and are not dependent on each other in their
operations; and iii) each entity maintains separate financial statements and are audited separately from
each other. Indubitably, therefore, Magnolia and SMGI became distinct entities with separate juridical
personalities. Thus, they cannot belong to a single bargaining unit (SMC Employees Union v. Confesor,
G.R. No. 111262, September 19, 1996).
Exclusive bargaining agent; doctrine of union monopoly
Once a labor union is chose as a certified collective bargaining agent in the bargaining unit through the
machineries of SEBA certification (sole and exclusive bargaining agent), consent election, certification
election, run-off election, or re-run election, it alone can collectively bargain with the management to the
exclusion of other competing unions. However, an individual employee or group of employee shall have
the right at any time to present grievances to their employer.
Doctrine of union monopoly. A certified bargaining agent is the only one that has the exclusive right and
monopoly to bargain with the management on terms and conditions of employment to the exclusion of
other unions.
Determination of representation status.
1. Request for SEBA certification (sole and exclusive bargaining agent)
2. Consent election
3. Certification election
4. Run-off election
5. Re-run election
SEBA Certification.
The process where a union requests the DOLE regional director to recognize and certify the union as the
SEBA (sole and exclusive bargaining agent) of the bargaining unit it purports to represent for purposes of
collective bargaining with the employer.
If the regional director finds the establishment unorganized with only one legitimate labor
organization, he shall call a conference for
i. the submission of names in the covered bargaining unit who signify their support for the
certification, provided that said employees comprise at least majority of the number of employees
in the covered bargaining unit; and
j. certification under oath by the president of the requesting union or local that all documents
submitted are true and correct.
If the regional director finds the establishment unorganized with more than one legitimate labor
organization, he shall refer the same to the election officer for the conduct of certification election.
If the regional director finds the establishment organized, he shall refer the same to the Mediator-Arbiter
for the determination of the propriety of conducting a certification election.
Effect of the issuance of the certification as SEBA
1. The certified union or local shall enjoy all the rights and privileges of an exclusive bargaining
agent of all the employees in the covered bargaining unit.
 2. The certification shall bar the filing of a petition for certification election by any labor
organization for a period of 1 year from the date of its issuance (certification bar rule).
Upon expiration of this one-year period, any legitimate labor organization may file a petition for
certification election in the same bargaining unit represented by the certified labor organization, unless a
CBA between the employer and the certified labor organization was executed and registered with the
regional office in accordance with Rule XVII of the rules.
Certification election.
Certification election is the process of determining through secret ballot, the sole and exclusive
bargaining agent of the employer in an appropriate bargaining unit, for purposes of collective bargaining.
Under the so-called “double majority rule,” for there to be a valid certification election, the majority of
the employees in the bargaining unit must have voted and the winning union must have garnered majority
of the valid votes cast.
Purpose of a certification election.
It is a means of determining the workers’ choice of:
1. Whether they want a union to represent them for collective bargaining or if they want no union to
represent them at all
2. And if they choose to have a union to represent them, they will choose which among the
contending unions will be the sole and exclusive bargaining agent in the appropriate bargaining
unit
Who may file certification election.
1. Any legitimate labor organization
a. a national union or federation that has issued a charter certificate to its local/chapter, or
b. the local/chapter itself
2. An employer, when requested by a labor organization to bargain collectively and its majority
status is in doubt.
Note that the incumbent bargaining agent shall automatically be one of the choices in the certification
election as forced intervenor.
The petition for certification election should be supported by the written consent of at least 25% of all the
employees in the appropriate bargaining unit. The purpose is to show that the petitioning union represents
a group of employees of the company who have a substantial interest in the election.
The holding of a certification election is valid even when the 25% requirement was not met at the time of
filing of petition provided that the same was thereafter met (Scout Albano Memorial College v. Noriel, 85
SCRA 494). However, if the petition is totally unsupported by the 25% requirement, the same should be
dismissed.
Certification election in an unorganized establishment.
An unorganized establishment is a company or firm where there is no recognized or certified collective
bargaining agent in the company premises. Despite the existence of some unions in a firm or company, it
is still treated as an unorganized establishment if no one among the unions is certified as the sole and
exclusive bargaining agent of the employees in the bargaining unit.
In a petition filed by any legitimate labor organization in an unorganized establishment, the Med-Arbiter
is required to automatically order the conduct of certification election upon filing of a certification
election by a legitimate labor organization, even without the 25% support of the employees in the
bargaining unit. The 25% requirement necessary for the filing of a petition is not applicable in
unorganized establishments as the same is deleted by Section 24 of R.A. 6715.
Thus, where the supervisors of the company constitute a bargaining unit separate and distinct from that of
a rank-and-file which is organized, and they have no bargaining agent, they may file a petition for
certification election through a legitimate labor organization as one under an unorganized establishment.
Retractions/recantations; best forum rule
If the retraction was made prior to the filing of the petition, the certification election may not be ordered
for the withdrawal is presumed to be voluntary unless there is convincing proof to the contrary.
If the retraction was made after the filing of the petition, the certification election may still be ordered for
the withdrawal is presumed to be involuntary. The best forum for determining whether there were indeed
retractions from some of the laborers is in the certification itself wherein the workers can freely express
their choice in the ballot (Best forum rule).
Qualified voters
All employees who are members of the appropriate bargaining unit sought to be represented by the
petitioner at the time of the issuance of the order granting the conduct of a certification election shall be
eligible to vote. An employee who has been dismissed from work but has contested the legality of the
dismissal in a forum of appropriate jurisdiction at the time of the issuance of the order for the conduct of a
certification election shall be considered a qualified voter, unless his/her dismissal was declared valid in a
final judgment at the time of the conduct of the certification election.
When may an employer file a petition for certification election.
When requested to bargain collectively in a bargaining unit where no registered CBA exists, an employer
may file a petition for certification election with the regional office.
Hands-off policy/bystander rule. A certification election is the sole concern of the workers. In all cases,
whether the petition for certification election is filed by an employer or a legitimate labor organization,
the employer shall not be considered a party thereto with a concomitant right to oppose a petition for
certification election.
Where to file the petition for certification election.
A petition for certification election shall be filed with the Regional Office which issued the petitioning
union’s certificate of registration or certificate of creation of chartered local. The petition shall be heard
and resolved by the Med-Arbiter.
Time of filing of petition for certification election
It would depend if the bargaining unit has a CBA or none.
If there is none, the petition may be filed any time except within 1 year from the date of a previous
election, if any.
If there is CBA, petition may only be filed within the freedom period of the representational aspect of the
CBA.
In what instance may a petition for certification election be filed outside the freedom period of a current
CBA?
As a general rule in an establishment where there is a CBA in full force and effect, a petition for
certification election may be filed only during the freedom period of such CBA. But to have that effect,
the CBA should have been filed and registered with the DOLE.
Thus, a CBA that has not been filed and registered with the DOLE cannot be a bar to a certification
election and such election can be held outside the freedom period of the CBA.
Order/decision on the petition for certification election.
Within 10 days from the date of the last hearing, the Med-Arbiter shall formally issue a ruling granting or
denying the petition, except in organized establishments where the grant of the petition can only be made
after the lapse of the freedom period.
The Med-Arbiter may dismiss the petition on any of the following grounds:
a. Petitioner is not registered. The petitioning union is not listed in the department’s registry of
legitimate labor unions
b. Petition is filed outside the freedom period. Filing of the petition before or after the freedom
period of a duly registered CBA
c. Petition violated the 1-year bar rule. Filing of a petition within 1 year from the date of
certification of the SEBA or within the same period from a valid certification, consent or run-off
election
d. Petition violated the negotiation-bar/deadlock bar rule. Where there exists a bargaining deadlock
which had been submitted to conciliation/arbitration or has become the subject of a valid notice
of strike or lockout where an incumbent or certified agent is a party
e. Petition filed without the 25% requirement. In an organized establishment, the failure to submit
the 25% signature requirement to support the filing of the petition for certification election
f. Absence of employer-employee relationship between the members of the petitioning union and
the establishment where the proposed bargaining unit is sought to be represented.
Requirements of a valid
i. At least a majority of all eligible voters in the bargaining unit must have cast their votes
(first majority rule)
ii. The union receiving the majority of the valid votes shall be certified as the exclusive
bargaining agent (second majority rule)
iii. When an election which provides for 3 or more choices results in no choice receiving a
majority of the valid votes cast, under the automatic second election rule, a run-off
election shall be conducted between the labor unions receiving the two highest number of
votes; provided, that the total number of votes for all contending unions is at least 50% of
the number of votes cast
iv. In determining the eligible voters who cast their ballots under the first majority rule, the
spoiled ballots are included. However, under the second majority rule, in determining the
valid votes cast the spoiled ballots are excluded but the challenged votes are included.
All issues pertaining to the existence of employer-employee relationship, eligibility or mixture in union
membership raised before the Med-Arbiter during the hearing and in the pleadings shall be resolved in the
same order or decision granting or denying the petition for certification election.
Contract-bar rule. Certification election may not be conducted during the existence of a CBA except
within the 60-day freedom period. The conduct of a certification election is not barred:
i. When the CBA is unregistered; or
 ii. The CBA is inadequate or incomplete, i.e. does not contain all the substantial demands on
terms and conditions of employment such as substantial economic benefits, or where the
CBA fails to provide the legal requirements for grievance machinery or voluntary
procedures.
iii. The CBA was hastily entered into, i.e. renewal or extension of the agreement was
premature, frustrating the right of employees to petition for certification election at the
proper time
iv. Withdrawal of affiliation from the contracting union brought about by schism or split, or
mass disaffiliation which can no longer foster industrial peace and stability
One-year bar rule/certification-bar rule. Certification election may not be held within 1 year from the
date of conduct of a valid certification election or consent election. Note that where the number of votes
cast in a certification or consent election is less than the majority of the number of eligible voters and
there is no material challenged votes, the election officer shall declare a failure of election. A failure of
election shall not bar the filing of a motion for the immediate holding of another certification or consent
election within 6 months from date of declaration of failure of election.

Deadlock-bar rule. Certification election may not be held during the existence of a bargaining deadlock
to which an incumbent or certified bargaining agent is a party and which had been submitted to
conciliation or arbitration or had become the subject of a valid notice of strike or lockout that has already
been filed with the NCMB. Where there was no notice of strike, but a mere declaration of bargaining
deadlock; it does not bar certification election.
Charge-of-company-unionism rule. The pendency of a formal charge of company unionism (unfair
labor practice) is a prejudicial question that, until decided, bars proceedings for a certification election,
the reason being that the votes of the members of the company-dominated union would not be free.
Outside-of-the-freedom-period rule. A petition for certification election or motion for intervention filed
before or after the freedom period shall be dismissed outright.
Negotiation-bar rule. No representation issue may be entertained, if before the filing of a petition for
certification election, the certified bargaining union has commenced negotiations with the employer in
accordance with Art. 261 within the 1-year period from the date of certification election, consent election
run-off election or from the date of SEBA certification.
Appeal-bar rule. The filing of the appeal from the Order or Decision of the Med-Arbiter granting the
petition for certification election stays the holding of the certification election.
Not listed in the registry rule. The petitioner is not listed in the registry of legitimate labor organizations
of the DOLE or that its legal personality has been cancelled or revoked with finality.
Consent election.
Consent election is an election that is voluntarily agreed upon by the parties with or without the
intervention of the DOLE for the purpose of determining the exclusive bargaining agent.
Where no petition for certification election was filed but the parties agreed to hold a consent election with
the intercession of the Regional Office, the results thereof shall constitute a bar to another petition for
certification election.
Where a petition for certification was filed and upon the intercession of the Med-arbiter, the parties agree
to hold a consent election, the results thereof shall constitute a bar to the holding of a certification election
for one year from the holding of such consent election.
Run-off election.
Run-off election refers to an election between the labor union receiving the two highest votes in a
certification election or consent election with three or more unions in contention, where such certification
election or consent election results in none of the contending unions receiving the majority of the valid
votes cast; provided, that the total number of votes for all contending unions, if added, is at least 50% of
the number of valid votes cast.
The ballots in the run-off election shall provide as choices the unions receiving the highest and second
highest number of votes cast. The labor union receiving the greater number of valid votes cast shall be
certified as the winner.
Requirements:
a. An election was conducted with three or more choices
b. None of the contending union obtained the required majority vote of 50%+1 of the valid votes
cast
c. There are no objections or challenges that can alter the results materially
d. The number of votes received by all contending unions when added together amounts to at least
50% of the total votes cast
“No-union” shall not be a choice in a run-off election because it is only conducted between the labor
unions receiving the 2 highest number of votes.
If “no union” garnered the majority vote in a certification election or consent election, no run-off
elections may be held. The minority workers who wish to have a union represent them in a collective
bargaining may not impose their will upon the majority upon the plea that they are being denied the right
to self-organization and collective bargaining. The minority employees can do nothing except to wait for
another suitable occasion to petition for a certification election and hope that the results will be different.
Re-run election.
“Re-run election” refers to an election conducted to break a tie between contending unions, including
between “no union” and one of the unions. The choice receiving the highest votes cast during the re-run
election shall be declared the winner and shall be certified accordingly.
A “re-run election” likewise refers to an election conducted after a failure of election has been declared
by the election officer and/or affirmed by the Mediator-Arbiter.
Where the number of votes cast in a certification or consent election is less than the majority of the
number of eligible voters and there are no material challenged votes, the election officer shall declare a
failure of election.
Principle of co-determination or co-sharing.
Workers shall have the right to participate in policy and decision-making processes of the establishment
where they are employed insofar as said processes will directly affect their rights, benefits and welfare.
Grievance Machinery and Voluntary Arbitration
A grievance is any question either by the employer or by the employee, arising from the interpretation or
implementation of the CBA and those arising from interpretation or enforcement of company personnel
policies.
Grievance procedure refers to the system of grievance settlement at the plant level as provided in the
CBA. It usually consists of successive steps starting at the level of complainant and his immediate
supervisor and ending, when necessary, at the level of the top union and company official.
Establishment of a grievance machinery.
The parties to a collective bargaining agreement 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 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 referred to in the CBA.
Any violation of the economic and non-economic provisions of the CBA or any law, rules and regulations
as well as customary practices, may constitute as grievance and is often referred to as rights dispute.
Also, questions arising from interpretation or enforcement of company personnel policies constitute
grievances that may be the subject of an arbitration.
Compliance with grievance machinery/voluntary proceedings necessary prior to strike.
For failure to comply with the grievance machinery/voluntary proceedings in the CBA, the notice of
strike should have been dismissed. A strike declared sans compliance with such procedures is illegal.
Submission of unresolved grievances to voluntary arbitration.
Where grievance remains unresolved, either party may serve notice upon the other of its decision to
submit the issue for voluntary arbitration to the voluntary arbitrator or panel of voluntary arbitrators
named and designated in the CBA.
Where the CBA does not so designate, the NCMB shall call the parties and appoint a voluntary arbitrator
or panel of voluntary arbitrators pursuant to the selection procedure agreed upon in the CBA.
Voluntary arbitration/compulsory arbitration.
Where the parties themselves agree to submit their issue to a third person or board and accept the
arbitration award as final and binding, the procedure is known as voluntary arbitration. If it is imposed
upon them by the government, then the technique is known as compulsory arbitration.
Compulsory arbitration is where the parties to a dispute are compelled by the government to forego their
right to strike and are compelled by the government to forego their right to strike and are compelled to
accept the resolution of their dispute through arbitration by a third party. In compulsory arbitration, the
essence of arbitration remains since the resolution of the dispute is arrived at by resort to a disinterested
party whose decision is final and binding on the parties, but such third party is normally appointed by the
government.
Jurisdiction of voluntary arbitrators and panel of voluntary arbitrators.
Original and exclusive jurisdiction:
to hear and decide all unresolved grievances arising from the interpretation or implementation of
the collective bargaining agreement and those arising from the interpretation or enforcement of
company personnel policies
to hear and decide wage distortion issues arising from the application of any wage orders
over any other labor dispute, including unfair labor practices, that may be submitted to it upon
agreement of the parties
The implementation of the “Drug Abuse” policy which requires the conduct of simultaneous drug tests on
all employees from different factories and plants in keeping with the government’s thrust to eradicate the
proliferation of drug abuse is in the nature of a “company personnel policy” and therefore, any issue
pertaining thereto falls under the jurisdiction of the Voluntary arbitrators, not the RTC. (Union of Nestle
Workers v. Nestle Phils., Inc., G.R. No. 148303, October 17, 2002)
The original and exclusive jurisdiction of the Labor Arbiters for money claims is limited only to those
arising from statutes or contracts other the CBA. The voluntary arbitrator or panel of voluntary arbitrators
has original and exclusive jurisdiction over money claims arising from the interpretation or
implementation of the CBA and those arising from the interpretation or enforcement of company
personnel policies.
STRIKES AND LOCKOUTS
Strike is any temporary stoppage of work by the concerted action of employees as a result of any
industrial or labor dispute which include slow-downs, sit-ins or sit-downs, mass leaves, group
demonstrations or any other group or concerted action, if directed against the employer, attempts to
damage, destroy or sabotage plant equipment and facilities, and similar activities.
To constitute a strike, the stoppage of work must be temporary and the result of an industrial dispute.
A strike or lockout may be declared in cases of bargaining deadlocks and unfair labor practices. Note that
a no-strike clause applies only to economic strikes.
Lockout is one of the economic shields of the employer against employees. It takes place when an
employer temporarily refuses to furnish work as a result of an industrial or labor dispute.
Who may declare a strike or lockout.
Any certified or duly recognized bargaining representative may declare a strike in cases of bargaining
deadlocks and unfair labor practices. The employer may declare a lockout in the same cases.
In the absence of a certified or duly recognized bargaining representative, any legitimate labor
organization in the establishment may declare a strike but only on grounds of unfair labor practice.
A group of employees without a union cannot stage a strike. Thus, an unregistered union cannot comply
with the requirements for staging a lawful strike.
Procedural requirements for a lawful strike or lockout.
a. Filing a notice of strike or lockout with the regional branch of the DOLE, copy furnished to the
employer or the union, as the case may be.
b. Strike vote or lockout vote. A strike or lockout must be approved by a majority of the total
membership of the Union or the members of the Board of Directors of the Corporation or
Association or of the partners in a partnership, obtained by secret ballot in a meeting called for
that purpose
c. Strike vote or lockout vote report. A strike or lockout vote shall be reported to the NCMB-DOLE
Regional Branch at least 7 days before the intended strike or lockout subject to the cooling-off
period.
d. Cooling-off period. A notice of strike or lockout shall be filed with the NCMB at least 15 days
from the intended date thereof if the issues raised are unfair labor practice, or at least 30 days
from the intended date thereof if the issue involves a bargaining deadlock copy furnished to the
adverse party
e. 7-day waiting period or strike ban.
In strike and lock-outs in hospital, it is the duty of the striking union or locking-out employer to provide
an effective skeletal workforce of medical and health personnel to insure adequate protection of the life
and health of the patients, particularly emergency cases during the duration of the strike.
Notice of strike or lock-out; mandatory cooling-off period.
A notice of strike or lockout shall be filed with the NCMB at least 15 days from the intended date thereof
if the issues raised are unfair labor practice, or at least 30 days from the intended date thereof if the issue
involves a bargaining deadlock copy furnished to the adverse party
In cases of union busting, the 15-day cooling-off period shall not apply and the union may take action
immediately after the strike vote is conducted and the results thereof submitted to the appropriate regional
branch of the NCMB. To constitute union busting, there must be:
 a. a dismissal from employment of union officers duly elected in accordance with the union
constitution and by-laws; and
b. the existence of the union must be threatened by such dismissal.
The cooling-off period is mandatory to afford the parties the opportunity to amicably resolve the dispute
with the assistance of the NCMB Conciliator/Mediator.
NCMB to conduct conciliation/mediation proceedings upon receipt of notice of strike or lockout.
Upon receipt of notice of strike or lockout, the regional branch of the NCMB shall conduct
conciliation/mediation proceedings. During the proceedings, the parties shall not do any act which may
disrupt or impeded the early settlement of the dispute. They are obliged, as part of their duty to bargain
collectively in good faith and to participate fully and promptly in the conciliation meetings called by the
regional branch of the NCMB.
A notice of strike or lockout, upon agreement of the parties, may be referred to alternative modes of
dispute resolution, including voluntary arbitration.
24-hour prior notice rule.
A union intending to stage a strike is also mandated to notify the NCMB of the meeting for the conduct of
strike vote, at least 24 hours prior to such meeting. This notice is required to: a) inform the NCMB of the
intent of the union to conduct a strike vote; b) give the NCMB ample time to decide whether or not there
is a need to supervise the conduct of strike vote to prevent any acts of violence and/or irregularities
attendant thereto; and c) should the NCMB decide motu proprio or upon the request of an interested party
including the employer, to supervise the strike vote, to give ample time to prepare for the deployment of
the requisite personnel, including peace officers.
Declaration of strike or lockout
Should the dispute remain unsettled after the lapse of the requisite number of days from the filing of the
notice of strike or lockout and of the results of the election required, the labor union may strike or the
employer may lock out its workers. The regional branch of the NCMB shall still continue mediating and
conciliating.
Strike vote.
Strike vote is designed to ensure the overwhelming sentiment that the decision to strike broadly rests with
the majority of the union members in general and not with a mere minority, at the same time, discourage
wildcat strikes, union bossism and even corruption.
Strike vote ballot filed within the cooling-off period.
In case the result of the strike/lockout vote ballot is filed within the cooling-off period, the 7-day waiting
period shall be counted from the day following the expiration of the cooling-off period. It is only after the
lapse of the total number of days after adding the 2 periods that the strike/lockout could be lawfully
staged.
In case of an unfair labor practice due to union busting, the 15-day cooling-off period shall be dispensed
with but the 7-day strike voter requirement, being mandatory in character, shall in every case be complied
with.
Mandatory 7-day strike ban.
The mandatory character of the 7-day strike ban is manifest, thus: “In every case, the union or the
employer shall furnish the NCMB the results of the voting at least 7 days before the intended strike or
lockout, subject to the (prescribed) cooling-off period.” The 7-day period starts from the day after the
results of the strike vote have been submitted to the regional branch of the NCMB.
The mandatory 7-day strike ban is intended to give the DOLE an opportunity to verify whether or not the
projected strike really carries with it the imprimatur of the majority of the union members.
“Doctrine of means and purposes” as to legality of strike.
Well-settled is the rule that even if the strike were to be declared valid because its objective and purpose
is lawful, the strike may still be declared invalid where the means employed are illegal. Among such
limits are the prohibited activities under Art. 279 of the LC, particularly par. (e), which states that no
person engaged in picketing shall:
a. commit any act of violence, coercion or intimidation
b. obstruct the free ingress to or egress from the employer’s premises for lawful purposes
c. obstruct public thoroughfares
The following acts have been held to be prohibited activities and are therefore illegal:
a. non-strikers were mauled and suffered physical injuries inflicted by the strikers
b. strikers circulated libelous statements against the employer which show actual malice or shouting
slanderous and scurrilous words
c. Where the strikers formed a human cordon and blocked all the ways and approaches to the
launches and vessels in the vicinity of the workplace
Assumption of jurisdiction over national interest cases by the Secretary of Labor and Employment.
When a labor dispute causes or is likely to cause a strike or lockout in an industry indispensable to the
national interest, the Secretary of Labor may assume jurisdiction over the dispute and decide it or certify
the same to the NLRC for compulsory arbitration, provided, that any of the following conditions is
present:
a. Both parties have requested the Secretary of Labor to assume jurisdiction over the labor dispute;
or
b. After a conference called by the Office of the Secretary of Labor, he determines the propriety of
the issuance of the Assumption or Certification Order, motu proprio or upon a request or petition
by either party to the labor dispute.
Industries indispensable to the national interest
i. Hospital sector
ii. Electric power industry
iii. Water supply services (exclude small water supply services such as refilling stations)
iv. Air traffic control
v. Such other industries as may be recommended by the national tripartite industrial peace council
Legal effects of assumption power.
Such assumption shall have the effect of automatically enjoining the intended or impending strike
or lockout
If a strike/lockout has already taken place at the time of assumption, 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.
 Thus, a return-to-work order is not necessary because the Secretary’s assumption and certification
orders are immediately executory in character.

In case of non-compliance with a return-to-work order in connection with the certification or

assumption of jurisdiction by the Secretary of Labor, the party concerned may be subjected to
immediate disciplinary action, including dismissal. The Secretary of Labor may also cite the
defiant party in contempt, pursuant to the power vested in him under the provisions of the LC for
he is engaged in a prohibited activity.

Resolution of dispute in assumption of jurisdiction.

The Secretary of Labor, the NLRC or the voluntary arbitrator or panel of voluntary arbitrators shall
decide or resolve the dispute within 30 calendar days from the date of the assumption of jurisdiction or
the certification or submission of the dispute, as the case may be. The decision of the President, the
Secretary of Labor, the NLRC or the voluntary arbitrator or panel of voluntary arbitrators shall be final
and executory 10 calendar days after receipt thereof by the parties.
Picketing
Picketing is a device used by the union to bolster their strike. It refers to outside patrolling or marching to
and fro of the strikers at the company’s premises usually accompanied by the display of placards and
other signs making known the facts involved in a labor dispute.
Strike and Picketing, distinguished
To strike is to stop work by the concerted action of employees as a result of an industrial or labor dispute.
The work stoppage may be accompanied by picketing by the striking employees outside of the company
compound. While a strike focuses on stoppage of work, picketing focuses on publicizing the labor dispute
and its incidents to inform the public of what is happening in the company struck against. A picket simply
means to march to and from the employer’s premises, usually accompanied by the display of placards and
other signs making known the facts involved in a labor dispute.
The strike to be effective, there must be an effective picketing. Peaceful picketing could be legally carried
out even without having been declared for it is a part of the freedom of expression.
Legal aspect of picketing.
In order to be lawful, picketing must be carried on peacefully and in conformity with lawful objectives. In
short, the ends and means must concur. Although picketing is generally peaceful at the beginning, it may
be declared illegal if the picketers start to utter forceful, coercive statements in an attempt to prevent
members of other unions from crossing the picket line.
Prohibited activities.
The following acts and practices are prohibited:
A. Declaring a strike or lockout on the grounds involving inter-union and intra-union disputes or on
issues brought to voluntary or compulsory arbitration.
B. Declaring a strike or lockout without first having bargained collectively or without first having
filed the required notice, or without the strike or lockout vote first having been obtained and
reported to the Regional Branch of the NCMB.
C. Implementing a strike or lockout in defiance of an order to return to work and accept the workers
after assumption of jurisdiction by the President or the Secretary of Labor or after certification or
 submission of the dispute to compulsory or voluntary arbitration or during the pendency of cases
involving the same grounds for the strike or lockout
D. Obstructing, impeding or interfering with, by force, violence, coercion, threats or intimidation,
any peaceful picketing by employees during any labor controversy or in the exercise of the right
of self-organization or collective bargaining or aiding or abetting such obstruction or interference.
E. Employing any strike-breaker or being employed as a strike-breaker. A strike-breaker is any
person who obstructs, impedes or interferes by force, violence, coercion or intimidation any
peaceful picketing by employees during any labor controversy affecting wages, hours or
conditions of work or in the exercise of the right to self-organization or collective bargaining.
F. No public official or employee, including officers and personnel of the AFP or the PNP, or armed
persons, shall bring in, introduce or escort in any manner, any individual who seeks to replace
strikers in entering or leaving the premises of a strike area, or work in place of the strikers.
Nothing herein shall be interpreted to prevent any public officers from taking any measure
necessary to maintain peace and order, protect life and property, and/or enforce the law and legal
order.
G. Stationary picket and the use of means like placing of objects to constitute permanent blockade or
to effectively close points of entry or exit in company premises
H. Any act of violence, coercion or intimidation by any picketer
I. Obstruction of the free ingress to or egress from the employer’s premises for lawful purposes
J. Obstruction of public thoroughfares while engaged in picketing.
Liability of union officers and union members.
A worker merely participating in an illegal strike may not be terminated from employment. It is only
when he commits illegal acts during a strike that he may be declared to have lost employment status.
A union officer may be terminated from employment for knowingly participating in an illegal strike or
participates in the commission of illegal acts during a strike.
Principle of improved offer balloting.
In an effort to avert a strike, the NCMB can conduct a last-ditch conciliation effort known as improved or
reduced offer balloting.
In case of a strike, the regional branch of the NCMB shall, at its own initiative or upon the request of any
affected party, conduct a referendum by secret balloting on the improved offer of the employer on or
before the 30th day of the strike.
When at least a majority of the union members vote to accept the improved offer, the striking workers
shall immediately return to work and the employer shall thereupon readmit them upon the signing of the
agreement.
Principle of improved offer balloting.
In case of a lockout, the regional branch of the NCMB shall also conduct a referendum by secret balloting
on the reduced offer of the union on or before the 30th day of the lockout. When at least a majority of the
board of directors or trustees or the partners holding the controlling interest in the case of a partnership
vote to accept the reduced offer, the workers shall immediately return to work and the employer shall
thereupon readmit them upon the signing of the agreement.
Requirement for arrest and detention.
Except on grounds of national security and public peace, no union members or union organizers may be
arrested or detained for union activities without previous consultations with the Secretary of Labor and
Employment.
FOREIGN ACTIVITIES
Prohibition against aliens; Exceptions.
All aliens, natural or juridical, as well as all foreign organizations are strictly prohibited from engaging
directly or indirectly in all forms of trade union activities without prejudice to normal contacts between
Philippine labor unions and recognized international labor centers.
Aliens working in the country with valid permits issued by the Department of Labor and Employment
may, however, exercise the right to self-organization and join or assist labor organizations of their own
choosing for purposes of collective bargaining, provided that said aliens are nationals of a country which
grants the same or similar rights to Filipino workers.
Visitorial power.
The Secretary of Labor or his duly authorized representative is empowered:
a. to inquire into the financial activities of legitimate labor organizations
b. to examine their books of accounts and other records to determine compliance or non-compliance
with the law
c. to prosecute any violations of the law and the union constitution and by-laws.

Limitations of the visitorial power.

The Secretary of Labor cannot exercise his visitorial power in the following cases:
a. during the 60-day freedom period
b. within 30 days immediately preceding the date of election of union officials
Tripartism and tripartite conferences.
Tripartism in labor relations is hereby declared a State policy. Towards this end, workers and employers
shall, as far as practicable, be represented in decision and policy-making bodies of the government.
The Secretary of Labor and Employment or his duly authorized representatives may from time to time
call a national, regional, or industrial tripartite conference of representatives of government, workers and
employers for the consideration and adoption of voluntary codes of principles designed to promote
industrial peace based on social justice or to align labor movement relations with established priorities in
economic and social development. In calling such conference, the Secretary of Labor and Employment
may consult with accredited representatives of workers and employers.