Labor Relations Reviewer

ELAH V.

Definitions:

Duty to bargain collectively

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 grievance or questions arising under such
agreement and executing a contract incorporating such agreements if requested by either party but such duty does not compel
any party to agree to a proposal or to make any concession. (ART. 252)

Deadlock Bar Rule

The Deadlock Bar Rule simply provides that a petition for certification election can only be entertained if there is no pending
bargaining deadlock submitted to conciliation or arbitration or had become the subject of a valid notice of strike or lockout.
The principal purpose is to ensure stability in the relationship of the workers and the management.

Contract Bar Rule

The contract bar doctrine provides that once a contract is executed, the National Labor Relations Board (NLRB) generally
does not permit a representation election in the unit covered by the contract until the contract expires up to a 3 year limit.
This rule applies to a petition by another union to represent the employees, a petition filed by the employees to decertify, or a
petition filed by the employer. The contract bar doctrine is followed in determining whether or not an existing collective-
bargaining contract will bar an election.

-refers to the existence of CBA. Where there is an existing CBA which has been duly registered, a petition for CE may be
filed, as already explained, only within the “freedom period” which is the last 60 days of the fifth year of the CBA.

Certification Election
Certification election is a process of determining through secret ballot the sole and exclusive bargaining agent (SEBA) of all
the employees in an appropriate bargaining unit for the purpose of collective bargaining.

Consent Election
"Consent Election" means the election voluntarily agreed upon by the parties to determine the issue of majority
representation of all the workers in the appropriate collective bargaining unit.

Run-off Election
"Run-Off" refers to an election between the labor unions receiving the two (2) higher number of voters when a certification
election which provides for three (3) or more choices results in no choice receiving a majority of the valid votes cast, where
the total number of votes for all contending unions is at least fifty percent (50%) of the number of votes cast.

Substitutionary Doctrine
Substitutionary doctrine refers to a principle in labor law which states that even during the existence of a collective
bargaining agreement executed between the employer and the employees through their agent, the employees can change the
said agent but the contract continues to bind them up into its expiration date. According to the doctrine, the employees cannot
revoke the validly executed collective bargaining contract with their employer by the simple expedient of changing their
bargaining agent. In the event, the new agent must respect the earlier contract.

Labor Organization
means any union or association of employees in the private sector which exists in whole or in part for the purpose of
collective bargaining or for dealing with employers concerning terms and conditions of employment.

Yellow Dog Contract

A promise exacted from workers or prospective employees that they will not belong to, or form, a union during their
employment. Unless the promise is given, the worker will not be hired, or if already hired will lose his job. ULP

Union-busting
To interfere with, restrain or coerce employees in the exercise of their right to self-organization. ULP

Run-away shop
 An industrial plant moved by its owners from one location to another to escape union labor regulations, or state laws, but the
term is also used to describe a plant removed to a new location in order to discriminate against employees at the old plant
because of their union activities.

Union Shop
Requires of union shop are: 1) the labor union must be the employee’s bargaining representative, pursuant to the manner of
designation or selection 2) the union shop arrangement must be entered into by mutual agreement; and 3) the conditions of
the union shop arrangement must be expressed unequivocally in the labor contract.

Featherbedding
Is the name given to employee practices which create or spread employment by unnecessarily maintaining or increasing the
number of employees used, or the amount of time consumed, to work on a particular job.

Bargaining in good faith

A fair criterion of good faith in collective bargaining requires that the parties involved deal with each other with open and fair
mind and sincerely endeavor to overcome obstacles or difficulties existing between them to the end that employment
relations may be established and obstruction to the free flow of commerce prevented.

Boulwarism
making a proposal which is not subject to bargaining. In effect there was to be no bargaining and the union was rendered
ineffective or irrelevant. The company dealt with the union through the employees rather than with the employees through
the union.

Certification Election
Where a voluntary recognition did not or cannot happen, a union selection through election should take place.

The electoral procedure to determine the employees’ exclusive bargaining representative.

It serves as the official, reliable and democratic basis for the Bureau to determine and name the union that shall represent the
employees in bargaining with the employer.

Consent Election
Means an election voluntarily agreed upon by the contending unions, with or without the intervention of the Department, to
determine which union carries the majority of the workers in the appropriate collective bargaining unit.

Where a petition for certification election had been filed, and upon the intercession of the Med-Arbiter, the parties agreed to
hold a consent election, the results shall constitute a bar to the holding of a certification election for one year from the
holding of such consent election.

Bystander Rule
In bystander rule in certification election, the employer is regarded as nothing more than a bystander with no right to interfere
at all in the election, the same being the sole concern of the workers.

Collective Bargaining Unit (CBU)

- refers to a contract executed upon request of either the employer or the exclusive bargaining representative of the employees
incorporating the agreement reached after negotiations with respect to wages, hours of work and all other terms and
conditions of employment, including proposals for adjusting any grievances or questions under such agreement.

Jurisdictional preconditions of collective bargaining, namely: 1) possession of majority representation; (2) proof of majority
representation; and (3) demand to bargain.

Bargaining impasse
- exists when good faith bargaining on the part of the parties has failed to resolve the issue and there are no definite plans for
further efforts to break deadlock.
Surface Bargaining
- defined as “going through the motions of negotiating without any legal intent to reach agreement.
- Repeated shifts in position and attitude on the part of an employer whenever a tentative agreement is reached are evidence of
a refusal to bargain collectively in good faith.

Certification year bar (One year bar rule)

No petition for C. E. may be filed within one year from the date of a valid certification, consent, or run-off election or from
the date of entry of a voluntary recognition of the union by the employer.

Hold-over Rule
It is a rule which declares that in the absence of an express or implied constitutional or statutory provisions prohibiting hold-
over, an officer is entitled to hold office until his successor is appointed and qualified. This rule prevents disruption of public
service in the meantime that a successor is not yet appointed and qualified to assume the functions of the office.
 Title Principle

Hawaiian-PhilCo -Absent the jurisdictional requisite of an employer-employee relationship between the company
V and the farm workers, the inevitable conclusion is that the NLRC is without jurisdiction to hear
Gulmatico and decide the case.

Austria It does not matter that the employer here is a religious sect and that it was organized not for
V profit because the LC applies to all establishments whether for profit or not.
NLRC
The case at bench is only one of dismissal of an employee in the exercise by the employer-
church of its management prerogatives and therefore does not concern any ecclesiastical matter.
Terminating one from his employment is totally different from the ecclesiastical act of expelling
a member from the religious congregation.
Dayag et al The SC held that the question of venue essentially pertains to the trial and relates more to the
V convenience of the parties rather than upon the substance and merits of the case.
Canizares
Reason: The doctrine that the State shall afford full protection to labor.

Pepsi-cola Bottling Co. The claim for said prize unquestionably arose from an ER_EE relation and, therefore, falls
V within the coverage of Art. 217 (224) of the LC which speaks of “all the claims arising from
Martinez EE-ER relations, unless expressly excluded by this Court.

Rubberworld Preference in favor of workers in case of bankruptcy or liquidation.

V
NLRC Suspension of Proceeding:

- When a corporation, unable to pay its debts and liabilities, petitions the SEC for a
declaration of suspension of payments, the SEC may appoint a receiver or a
management committee tasked with the rehabilitation of the corporation. Consequent
to such appointment, accdg. To PD no. 902-A. “all actions for claims against such
corporation xxx pending before any court, tribunal, board or body shall be suspended
accordingly.

Hagonoy Water district Local water districts are quasi-public corporations whose employees belong to the civil service;
V hence, the dismissal of those employees shall be governed by the civil service law, rules and
NLRC regulations.

Ang Tibay v CIR The cardinal primary rights for Administrative proceedings:
1. Right to a hearing
2. Tribunal must consider the evidence presented
3. Decision must be supported by something
4. Supporting evidence must be substantial
5. Decision must be rendered on the evidence presented
6. Judges must act on his own independent consideration of the law and facts
7. Decide in manner that parties can know the various issues involved and the reason for
the decision.
St. Martin Funeral Homes v. 1. The way to review NLRC decisions is through the special civil action of certiorari
NLRC under Rule 65
2. The jurisdiction over such action belongs to both the SC and the CA
3. In line with the doctrine on hierarchy of courts, the petition should be initially
presented to the lower of the two courts, that is, the court of Appeals.

Progressive Development A local or chapter therefore becomes a LLO only upon submission of the following to the BLR:
Corp. v DOLE
1. A charter certificate, within 30 days from its issuance by the labor federation or national
 union
2. The constitution and by-laws, a statement on the set of officers, and the books of accounts all
of which are certified under oath by the secretary or treasurer, as the case may be, of such local
or chapter, and attested to by its president.

Toyota Motor Phil. Corp. v.
Toyota Motor Phil. Corp.
Labor Union
Absent compliance with these mandatory requirements, the local or chapter does not become a
legitimate labor organization.
Article 245 provides:
Art. 245 Ineligibility of managerial employees to join any labor organization; right of
supervisory employees. — Managerial Employees are not eligible to join, assist or form any
labor organization. Supervisory employees shall not be eligible for membership in a labor
organization of the rank-and-file employees but may join, assist or form separate labor
organizations of their own.

Clearly, based on this provision, a labor organization composed of both rank-and-file and
supervisory employees is no labor organization at all. It cannot, for any guise or purpose, be a
legitimate labor organization. Not being one, an organization which carries a mixture of rank-
and-file and supervisory employees cannot possess any of the rights of a legitimate labor
organization, including the right to file a petition for certification election for the purpose of
collective bargaining. It becomes necessary, therefore, anterior to the granting of an order
allowing a certification election, to inquire into the composition of any labor organization
whenever the status of the labor organization is challenged on the basis of Article 245 of the
Labor Code.

USTFU V. Dir. Bitonio of In a certification election, all employees belonging to the appropriate bargaining unit can
BLR vote. Therefore, a union member who likewise belongs to the appropriate bargaining unit is
entitled to vote in said election. However, the reverse is not always true; an employee belonging
to the appropriate bargaining unit but who is not a member of the union cannot vote in the union
election, unless otherwise authorized by the constitution and bylaws of the union. Verily, union
affairs and elections cannot be decided in a non-union activity.

ALEX FERRER vs. In the implementation of the provisions of the CBA, both parties thereto should see to it that no
NATIONAL LABOR right is violated or impaired.
RELATIONS COMMISSION
Parenthetically, the right of a local union to disaffiliate from a federation in the absence of any
provision in the federation's constitution preventing disaffiliation of a local union is legal.

PHILIPPINE DIAMOND Article 255 of the Labor Code provides: EXCLUSIVE BARGAINING REPRESENTATION
HOTEL AND RESORT, INC. AND WORKERS PARTICIPATION IN POLICY AND DECISION-MAKING: The labor
(MANILA DIAMOND organization designated or selected by the majority of the employees in an appropriate collective
HOTEL) versus MANILA bargaining unit shall be the exclusive representative of the employees in such unit for the
DIAMOND HOTEL purpose of collective bargaining. However, an individual employee or group of employees shall
EMPLOYEES UNION have the right at any time to present grievances to their employer. XXXXXX

An ordinary striking worker cannot, thus be dismissed for mere participation in an illegal strike.

There must be proof that he committed illegal acts during a strike, unlike a union officer who
may be dismissed by mere knowingly participating in an illegal strike and/or committing an
illegal act during a strike.

UNITED PEPSI-COLA To qualify as managerial employee, there must be a clear showing of the exercise of managerial
SUPERVISORY UNION attributes under paragraph (m), Article 212 of the Labor Code as amended. Designations or titles
(UPSU) vs. HON. of positions are not controlling. In the instant case, nothing on record will support the claim that
BIENVENIDO E. the quality control manager, yard/transport manager and warehouse operations manager are
LAGUESMA vested with said attributes. XX

Art. 212 which provides:

 (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.

In the case of Art. 245, there is a rational basis for prohibiting managerial employees from
forming or joining labor organizations.
In Bulletin Publishing Co., Inc. v. Hon. Augusto Sanchez, this Court elaborated on this
rationale, thus:
. . . The rationale for this inhibition has been stated to be, because if these managerial
employees would belong to or be affiliated with a Union, the latter might not be assured of their
loyalty to the Union in view of evident conflict of interests. The Union can also become
company-dominated with the presence of managerial employees in Union membership.
METROLAB INDUSTRIES, Although Article 245 of the Labor Code limits the ineligibility to join, form and assist any labor
INC. vs. HONORABLE MA. organization to managerial employees, jurisprudence has extended this prohibition to
NIEVES ROLDAN- confidential employees or those who by reason of their positions or nature of work are required
CONFESOR to assist or act in a fiduciary manner to managerial employees and hence, are likewise privy to
sensitive and highly confidential records.

FORTUNATO DA. SEC. 4. Unfair Labor Practices. —

BONDOC  (a) It shall be unfair labor practice for an employer:
vs. xxx xxx xxx
COURT OF INDUSTRIAL (4) To discriminate in regard to hire or tenure of employment or any term or condition of
RELATIONS employment to encourage or discourage membership in any labor organization; ... (As amended
by R.A. No. L-3350, approved June 17, 1961).

In dismissing the charge of unfair labor practice, the CIR found that the alleged discriminatory
acts against the petitioner did not arise from union membership or activity because he was not in
fact a union member.
THE INSULAR LIFE Although the union is on strike, the employer is still under obligation to bargain with the union
ASSURANCE CO., LTD., as the employees’ bargaining representative.
EMPLOYEES
ASSOCIATION-NATU Individual solicitation of the employees or visiting their homes, with the employer or his
V representative urging the employees to cease union activity or cease striking, constitutes unfair
THE INSULAR LIFE labor practice. All the above-detailed activities are unfair labor practices because they tend to
ASSURANCE CO., LTD., undermine the concerted activity of the employees, an activity to which they are entitled free
from the employer’s molestation.

LIBERTY FLOUR MILLS There is no question that these purposes could be thwarted if every worker were to choose
EMPLOYEES, vs. to go his own separate way instead of joining his co-employees in planning collective action
LIBERTY FLOUR MILLS, and presenting a united front when they sit down to bargain with their employers. It is for
INC. PHILIPPINE LABOR this reason that the law has sanctioned stipulations for the union shop and the closed shop as a
ALLIANCE COUNCIL means of encouraging the workers to join and support the labor union of their own choice as
(PLAC) their representative in the negotiation of their demands and the protection of their interest vis-a-
vis the employer.

Union shop- Requisites: 1. The labor union must be the employee’s bargaining rep
1. The union shop arrangement must be entered into by mutual agreement
2. The conditions of the union shop arrangement must be expressed unequivocally in the
labor contract.

Closed shop- A closed-shop is an agreement whereby an employer binds himself to hire only
members of the contracting union who must continue to remain members of good standing to
keep their jobs. It is strictly construed. It is not to be given a retroactive effect so as to preclude
its being applied to employees already in the service.
SY CHIE JUNK SHOP v
FOITAF
Mabeza v. NLRC, Peter
Ng/Hotel Supreme
Alexander Reyes, Alberto M.
Nera, Edgardo M. Geca, and
138 others v. Cresenciano B.
Trajano
Victorias Milling Co., v.
Victorias-Manapla
Organization-PAFLU
Having this in mind, loss of confidence should ideally apply only to cases involving employees
occupying positions of trust and confidence or to those situations where the employee is
routinely charged with the care and custody of the employer's money or property. To the first
class belong managerial employees, i.e., those vested with the powers or prerogatives to lay
down management policies and/or to hire, transfer, suspend, lay-off, recall, discharge, assign or
discipline employees or effectively recommend such managerial actions; and to the second class
belong cashiers, auditors, property custodians, etc., or those who, in the normal and routine
exercise of their functions, regularly handle significant amounts of money or property.
1. the act of compelling employees to sign an instrument indicating that the employer
observed labor standards provisions of law when he might have not, together with the
act of terminating or coercing those who refuse to cooperate with the employer's
scheme constitutes unfair labor practice. The first act clearly preempts the right of the
hotel's workers to seek better terms and conditions of employment through concerted
action.
Paragraph (f), Article 248 of the Labor Code states it shall be unlawful for an employer
“to dismiss, discharge, or otherwise prejudice or discriminate against an employee for
having given or about to give testimony.”
While the right of self-organization for the purposes of collective bargaining is a right
guaranteed to all employees or workers, the right not to join, affiliate with, or assist any
union and to disaffiliate from a labor organization is subsumed therein. The right to form
or join a labor organization necessarily includes the right to refuse or refrain from
exercising said right. It is self-evident that just as no one should be denied the exercise of a
right granted by law, so also, no one should be compelled to exercise such a conferred
right. The fact that a person has opted to acquire membership in a labor union does not
preclude his subsequently opting to renounce such membership.
The purpose of a certification election is precisely the ascertainment of the wishes of the
majority of the employees in the appropriate bargaining unit: to be or not to be represented by a
labor organization, and in the affirmative case, by which particular labor organization. If the
results of the election should disclose that the majority of the workers do not wish to be
represented by any union, then their wishes must be respected, and no union may properly be
certified as the exclusive representative of the workers in the bargaining unit in dealing with the
employer regarding wages, hours and other terms and conditions of employment.
As repeatedly stated, the right of self-organization embraces not only the right to form,
join or assist labor organizations, but the concomitant, converse right NOT to form, join
or assist any labor union.
Neither law, administrative rule nor jurisprudence requires that only employees affiliated with
any labor organization may take part in a certification election. On the contrary, the plainly
discernible intendment of the law is to grant the right to vote to all bona fide employees in the
bargaining unit, whether they are members of a labor organization or not. 
Another reason for enforcing the closed-shop is the principle of sanctity or inviolability of
contracts guaranteed by the Constitution. As a matter of principle the provision of the Industrial
Peace Act granting freedom to employees to organize themselves and select representative for
entering into a bargaining agreement should be subordinated to the constitutional provision
protecting the sanctity of contracts. We cannot conceive how freedom to contract, which should
be allowed to exercise without limitation, may be subordinated to freedom of laborers to choose
the organization they desire to represent them. And even if the legislature had intended to do so
and made such freedom of the laborer paramount to the sanctity of obligation of contracts, such
attempt to override the constitutional provision would necessarily and ipso facto be null and
void.
 The dismissal of the employees by the respondent Victorias Milling Company, Inc. was in
pursuance of a clause of agreement between said company and the Free Farmers Union, which
agreement became automatically renewed upon its expiration on December 31, 1959, and before
a new bargaining agreement could be arrived at, the action of the respondent company in
enforcing the terms of the closed-shop agreement is a valid exercise for its rights and obligations
under the contract. The dismissal by virtue of thereof cannot constitute an unfair labor practice,
as it was in pursuance of an agreement that has been found to be regular and of a closed-shop
agreement which under our laws is valid and binding.
KIOK LOY vs. NATIONAL Article 249, par. (g) of the Labor Code makes it an unfair labor practice for an employer to
LABOR RELATIONS refuse "to meet and convene promptly and expeditiously in good faith for the purpose of
COMMISSION (NLRC) negotiating an agreement with respect to wages, hours of work, and all other terms and
conditions of employment including proposals for adjusting any grievance or question arising
under such an agreement and executing a contract incorporating such agreement, if requested by
either party.

The mechanics of collective bargaining is set in motion only when the following jurisdictional
preconditions are present, namely:

(1) possession of the status of majority representation of the employees' representative in

accordance with any of the means of selection or designation provided for by the Labor Code;

(2) proof of majority representation; and

(3) a demand to bargain under Article 251, par. (a) of the New Labor Code . ... all of which
preconditions are undisputedly present in the instant case.

A Company's refusal to make counter proposal if considered in relation to the entire bargaining
process, may indicate bad faith and this is especially true where the Union's request for a
counter proposal is left unanswered.
GENERAL MILLING The law mandates that the representation provision of a CBA should last for five
CORPORATION vs. CA years. The relation between labor and management should be undisturbed until the last 60
days of the fifth year.

ART. 253-A. Terms of a collective bargaining agreement. – Any Collective Bargaining

Agreement that the parties may enter into shall, insofar as the representation aspect is
concerned, be for a term of five (5) years. No petition questioning the majority status of the
incumbent bargaining agent shall be entertained and no certification election shall be conducted
by the Department of Labor and Employment outside of the sixty-day period immediately
before the date of expiry of such five year term of the Collective Bargaining Agreement. All
other provisions of the Collective Bargaining Agreement shall be renegotiated not later than
three (3) years after its execution….

ART. 250. Procedure in collective bargaining. – The following procedures shall be observed

in collective bargaining:
(a) When a party desires to negotiate an agreement, it shall serve a written notice upon the other
party with a statement of its proposals. The other party shall make a reply thereto not later
than ten (10) calendar days from receipt of such notice.

Indophil Textile Mill Workers in the case of Diatagon Labor Federation Local 110 of the ULGWP v. Ople (supra) that it is
Union-PTGWO vs. Voluntary grave abuse of discretion to treat two companies as a single bargaining unit when these
Arbitrator Teodorico P. companies are indubitably distinct entities with separate juridical personalities.
Calica and Indophil Textile
Mills, Inc.,

ALU V FERRER-CALLEJA The petition for CE doThe petition for CE does not bar the employer and the incumbent union
from renegotiating and renewing the expiring CBA. In other words, a CBA may be renegotiated
before, during, or after the 60-day freedom period. But if during such period a PCE is filed, the
Med-Arbiter can order the suspension of the renegotiation until the representation proceedings
 finally end.

A CBA which was prematurely renewed is not a bar to the holding of a certification election.

The Court has long since declared that:

... Basic to the contract bar rule is the proposition that the delay of the right to select
representatives can be justified only where stability is deemed paramount. Excepted from the
contract which do not foster industrial stability, such as contracts where the identity of the
representative is in doubt. Any stability derived from such contracts must be subordinated to the
employees' freedom of choice because it does not establish the type of industrial peace
contemplated by the law.

CAPITOL MEDICAL Section 3, Rule V, Book V Of the Rules Implementing the Labor Code where a certification
CENTER OF CONCERNED election should be conducted, viz: (1) that one year had lapsed since the issuance of a final
EMPLOYEES-UNIFIED certification result; and (2) that there is no bargaining deadlock to which the incumbent or
FILIPINO SERVICE certified bargaining agent is a party has been submitted to conciliation or arbitration, or had
WORKERS, (CMC-ACE- become the subject of a valid notice of strike or lockout, are present in this case.
UFSW), 
vs. There is deadlock when there is a complete blocking or stoppage resulting from the action of
HON. BIENVENIDO E. equal and opposed forces xxx. The word is synonymous with the word impasse, which xxx
LAGUESMA, ‘presupposes reasonable effort at good faith bargaining which, despite noble intentions, does not
conclude in agreement between the parties.’

If the law proscribes the conduct of a CE when there is a bargaining deadlocks submitted to
conciliation or arbitration, with more reason should it not be conducted if, despite attempts to
bring an employer to the negotiation table by the certified bargaining agent, there was “ no
reasonable effort in good faith” on the part of the employer to bargain collectively. It is only just
and equitable that the circumstances in this case should be considered as similar in nature to “
bargaining deadlock” when no certification election could be held.

BENGUET SUBSTITUTIONARY DOCTRINE:

CONSOLIDATED, INC. vs.
BCI EMPLOYEES & - the principle of substitution in collective bargaining means that where there occurs a
WORKERS UNION-PAFLU shift in employee’s union allegiance after the execution of a CBA with their employer,
the employees can change their agent labor union, but the CBA which is still subsisting
continues to bind the employees up to its expiration. In other words, under the
substitutionary doctrine, the employees cannot revoke the validly executed CBA with
their employees by the simple expedient of changing their bargaining agreement agent.
The employees may bargain however for the shortening of said expiration date. The
principle applies to a situation when there occurs a shift in employees’ union allegiance
after the execution of a collective bargaining contract.
HOLY CROSS OF DAVAO Since the CBA is considered the law between the parties, containing as it does the agreed terms
COLLEGE, INC., petitioner,  of employment of the employee with his employer, unilaterally imposed orders or rules
vs. HOLY CROSS OF qualifying the terms contained in the agreement are subordinate to the CBA. At most, such
DAVAO FACULTY UNION - rules, such as the rules on trips abroad formulated by petitioner a few months before Legaspi’s
KAMAPI application, are merely suppletory and can neither contradict nor undermine the terms found in
the CBA.