LABOR RELATIONS
ATTY. JMM | A.Y. 2020 – 2021
MODULE 9 – RIGHT TO SELF-ORGANIZATION
PART 1
The way to study this topic is to, first and foremost, look
at the Basic Principles. Once you study the Right to Self-
organization, it will necessarily follow that you will have
a good comprehension of the Rights of Legitimate Labor
Organization [covered by Module 10].
When you speak of the Right to Self-organization, you
have to take note of the Constitutional provisions –
wherein the State protects the workers’ right to self-
organization.
Under the Constitution, we have this article…
SEC. 8, ART. III 1987 CONSTITUTION
The right of the people, including those employed in
the public and private sectors, to form unions,
associations, or societies for purposes not contrary to
law shall not be abridged.
Focus on this constitutional provision as this embodies
the right to form unions, associations, or societies for
purposes not contrary to law.
In fact, it has been said that the freedom of association is
one of the most basic rights of human; a basic human
right. This will entitle every individual to form or
organize a group, whether formally or informally, or to
join any group, formal or informal. That’s how broad it
is.
Reading the constitutional provision, it says, “the right of
the people”; it’s people and it focuses on those people
who are employed in the public and private sector.
The constitution recognizes the rights to form unions,
associations, and societies, as long as they are not
established for purposes contrary to law. This is not
subject to interference by the State whenever these
people, including those employed in the public and
private sectors, would desire to choose their right to
form associations. It speaks of a union, association, and a
society. This is the general provision on the right to
association and made available including those
employed in the public and private sectors.
I will focus primarily on EEs in the private sector. Ofc, EEs
in public sector may also exercise the right to form
associations which includes the right to self-
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organization. However, their rights are not as
comprehensive as the rights of the workers in the
private sector.
When you speak of a union, association, what does it exactly
mean?
Check first the statute – the LC.
ART. 219 (g)
Labor organization – 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.
Take note of the conjunction “OR”. From this definition,
it includes a union, a workers’ association.
Is there a definition of a workers’ association in the LC?
None. You look at the IRR which is the DO No. 40-03 s.
2003, as amended. This IRR will tell us if there’s a
definition of a labor union or a workers’ association.
SEC. 1, RULE I, D.O. NO. 40-03
(ccc) “Union” refers to any labor organization in the
private sector organized for collective bargaining and
for other legitimate purposes.
Is a labor organization always a union? NO, because a labor
organization includes a workers’ association. Take note
of this logic and principle.
From this definition a Union, what does it connote? It
connotes that:
1. a union is a labor organization; and
2. a union exists for the purpose of collective bargaining
and for other legitimate purposes.
Primarily, when you speak of a union within the context
of LabRel, you’re referring to a labor organization that
exists, in whole or in part, for the purpose of collective
bargaining.
Right to bargain collectively is one of the broad rights
of a legitimate organization – which contemplates a
relationship where there exists an EE-ERR. When you
bargain with the ER, obviously the parties involved there
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would be the ER and the union acting on behalf of the EEs
in that bargaining unit. May EE-ERR siya, yun ang union.
A labor organization refers to any union or association of
employees in the private sector which exist in whole or in
part for the purpose of collective bargaining, mutual aid
and interest cooperation, protection or other lawful
purposes.
So, labor organization under the IRR is still consistent
with the definition of a labor organization under the LC.
Which means that it include a labor union, association of
workers and employees otherwise known as workers'
association.
A workers' association means organized for mutual aid
and protection of its members or for any legitimate
purpose other than collective bargaining.
A labor organization includes workers' association. It
means that when you speak of labor organization it may
exist for the purpose of collective bargaining, mutual aid
and protection of its members or any other legitimate
purposes.
Based on the distinctions, it’s clear that a labor union
exist for the purpose of collective bargaining while a
workers' association exist for mutual aid and protection
of its members and not for the purpose of collective
bargaining. Hindi maka pag exercise ng collective
bargaining yung workers' association.
Does the workers' association require that the members must be
employees of the establishment where it exist? IOW, should
there be an EER similar to a labor union existing in an
establishment?
NO, any person whether employed or not in the
establishment where the association exist may join that
workers' association. It does not require the existence of
EE-ERR.
In fact, one of the primary purpose of workers' association
is for the mutual aid and protection of its members. If you
look at the IRR, workers' association may also be compose
of ambulant workers and those workers who have no
definite employers.
IOW, workers' association may or may not be compose
of employees. After all, their existence is not for the
purpose of collective bargaining but rather for the mutual
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aid and protection. When we say mutual aid and
protection, it refers to its members.
If I were employed, can I also form a workers' association? YES,
even though I am an employee, I am not compelled to
form an organized labor union if I don't want to. I can
only decide to form a workers' association for the
purpose of mutual aid and protection and not for
collective bargaining.
A workers' association may therefore exist even if there
is absence of EE-ERR. Unlike in a labor union, which
requires the essential element of EE-ERR. Kasi mag ba-
bargain collectively yung union member with the
employer so it requires EE-ERR.
In the same way if the workers so decide to participate in
policy and decision making processes. So far these
processes would directly affect the rights, benefits and
welfare. It also contemplates an EE-ERR situation.
A legitimate labor organization, refers to a labor
organization in the private sector duly registered with the
Department of Labor and Employment in accordance
with the rules.
Once the labor organization is registered with the
appropriate government agency, we call that labor
organization as a legitimate labor organization.
Note: The registration is material for the purpose of
enabling the labor organization to exercise the rights of
legitimate labor organization under the LC. Kasi yung
LC natin spells out certain rights but these rights can only
be exercised by a legitimate labor organization. Not a
mere labor organization, or a labor union but a legitimate
labor organization.
In the same way, since a workers' association is also a
labor organization or within the meaning of labor
organization. If the workers' association is duly registered
then that is only when we can say that it can also exercise
the rights of a legitimate labor organization but not for the
purpose of collective bargaining, simply for the purpose
of mutual aid and protection.
I also listed the definition of an independent union,
affiliate local or chapter or chartered local. I want you to
also check a local union as well as national union or federation.
Make your own outline of the definition of these terms.
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An independent union, refers to a labor organization
operating at the enterprise level that acquired legal
personality through independent registration under the
LC and implementing rules.
EXAMPLE: USC College of Law, I decide to join a R&F
union of faculty members. If we operate at the level of
USC College of Law that is enterprise level that will
classify our labor union as an independent union if we are
registered through an independent registration under the
LC.
Meron tayong independent union and we also have a local
or chapter otherwise known as the chartered local.
A chartered local refers to a labor organization in the
private sector operating at the enterprise level that
acquired legal personality through the issuance of a
charter certificate by a duly registered federation or
national union, and reported to the Regional Office.
When you speak of a chartered local, it is a labor
organization that acquires legal personality through the
issuance of a charter certificate by a duly registered
federation or national union.
In fact, you will come across later a provision of the LC
on the registration or chartering of a local or chapter.
An affiliate refers to an independent union affiliated with
a federation, national union or a chartered local which
was subsequently granted independent registration but
did not disaffiliate from its federation.
Here, you affiliate with a federation or national union,
you want to increase your bargaining power with your
employer. Then, you can validly do that. If you are
backed up by a federation or national union, you are
stronger than if you were just to exist as a mere
independent or local union.
A national union or federation refers to a group of
legitimate labor unions in a private establishment
organized for collective bargaining or for dealing with
employers concerning terms and conditions of
employment for their member unions or for participating
in the formulation of social and employment policies,
standards and programs, registered with the Bureau of
Labor Relations.
If you look at it, this national union or federation, it is still
a labor organization, only that it is bigger or larger than
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an independent union, it is bigger or larger than a mere
local or chapter or a chartered local because it has at least
10 legitimate labor organizations certified in the
establishment where it seeks to operate. So if you have at
least 10 duly registered independent unions then you can
now form a national union or federation, but each of these
independent unions must be certified as the sole
exclusive bargaining agent in the respective
establishments.
Between an independent union and national union or
federation, which has better capacity to negotiate CBA? The
national union or federation because the officers of the
national union or federation may or may not be
employed in the establishment of the employer where
it is dealing for purposes of collective bargaining. It has
more strength because it is backed up by at least 10 duly
certified independent unions or at least 10 local or
chapters.
Important Principles:
1. The right to self-organization includes:
 The right to form or organize a union;
 To form or organize workers’
association; and,
 Right to form or organize a labor
management council.
2. The right to self-organization more often than
not connotes unionism.
However, workers can form associations as well
as labor management council even if the
members are not employees of the establishment
where this association seeks to operate.
The essence of the workers’ association is not the
members may or may not be employees but they
can deal with the employer regarding the terms
and conditions of the employment such as wages,
hours of work and other benefits. Hindi kailangan
ng EE-ERR because after all, a workers’
association cannot exercise the right to collective
bargaining but it can deal with the employer on
the terms and conditions of employment.
The SC has described that as a generic description of
interaction between an employee and an employer in
terms of grievances wages even if this employee’s
group is not registered.
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3. Right to self-organization includes two broad
notions:
 Liberty or freedom
The absence of legally strained whereby
the employee may act for himself
without being prevented by law.
 Power
An employee may as he pleases join or
refrain from joining an association.
Right to self-organization IOW, includes the
freedom of association and the negative freedom
of association because there is no law prohibiting
me from acting either way. I can therefore act for
myself without being prevented by law. And if I
decide to act let’s say by forming or joining an
association or labor union, it is within my power
to quit from my membership in that association
or union and decide to be a non-member at all or
perhaps choose another association or labor
union where I can be a member.
4. Every labor union is a labor organization but not
every labor organization is a labor union.
The difference lies there in organization,
composition and operation. Do not confuse
yourself with a labor union from a labor workers’
association because there is a large difference
between these two organizations in terms of
composition, operation and organization.
5. Collective bargaining is just one of the forms of
employee participation.
It is not the end goal of the employee
representation. We always say that when we
form a labor union it is for the purpose of
collective bargaining but it is not the end
objective of the right to form labor unions.
According to the SC, the real aim in exercising
the right to self-organization particularly
forming or organizing a labor union is employee
participation in whatever form, it may appear
bargaining or no bargaining, union or no union
at all. So, it’s an employee participation. It is just
one of the forms of employee participation.
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So, it would seem to suggest that when the state
promotes the policy of unionism, it aims
employee participation and one employee
participation is through collective bargaining
which can be exercised when workers form and
organize a labor union.
In terms of the workers’ association, it is enough
that the members of the association share
common interest especially that the purpose of
organizing a worker’s association is for mutual
aid and protection.
It is important to understand these fundamental
principles before we head on to our next topic.
Next topic:
What is the reason why workers organize? What is the
policy of the state in promoting unionism? How is it
guaranteed under our Constitution? Who may qualify
to be a member of a labor union?
TN: Right to self-organization is not absolute, it
has limitations. There are certain employees who
are rendered not eligible to form or organize a
labor union.
PART 2
Previously, we mentioned the fundamental principles
that underlie the right to self-organization. Also, the two
broad notions which underscore the right to self-
organization.
We have to identify the common reasons why workers
have to organize themselves into a labor organization.
Simply put, the SC has observed in one case:
Labor organizations are organized out of
necessities of the situation. They are formed to
offset the social and economic imbalance that
an individual undergoes when bargaining with
his employer.
We need to concede that when we speak of a single EE,
he is usually helpless in dealing with his ER concerning
his terms and conditions of employment like wages, hrs.
of work and other employment benefits.
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If I’m an EE and there’s no labor organization within the
establishment that I am employed and I may want to
improve on my wages/salary, it’s difficult on my part to
approach the mgmt. and to request them to grant a salary
increase. I may be shy, I may feel so low, not so confident
if I decide to approach the mgmt.. Medyo hopeless ka.
In the same way that EE who may have valid grievance,
may also be in the same situation if he decides to seek
redress of his grievance. He may want to seek
appointment with his ER and ERs are most often than not
are very busy; some of them do not take their EEs srsly
when it comes to addressing grievances.
Yung pagiging helpless ng mga workers creates the
necessity of the workers creating a labor
organization.
A worker bargaining with his ER is usually
placed at a disadvantage position. Between him
and his ER, there is a large difference in terms of
economic status, bargaining knowledge and
skill, etc.
The EE may not be as good in dealing w/ his ER re:
improvement of his terms & conditions of employment
compared to one where the worker exercises collective
bargaining as a group in dealing with his ER.
Another situation, mga inhuman working
conditions that really force men to organize.
If the EEs feel that they are not accorded just and humane
conditions of work, the ER violates the rights of the
workers to occupational safety and health – that’s another
common grievance where workers may decide to
organize.
If you look at the law that strengthens the right of the
workers to occupational safety and health, there are a lot
of rights spelled out there and you will note that many of
these rights are often violated by ERs, perhaps,
deliberately or out of ignorance, that leaves workers
helpless.
Workers may want to participate in policy and
decision-making processes which affects their
rights, benefits and welfare.
They may organize their selves collectively as a labor
union / workers’ association for that matter.
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Labor union may decide to affiliate with a federation or
national union in order to increase their bargaining
powers with their ER.
Then those federation or national unions they are
created and organized because, as you know many
governmental policies are implements of unions acting
as pressure groups. Workers increase their bargaining
power not only with the ERs but also with the
policymakers if they are formed and organized as
national unions or federation.
You could think also of valid reasons why workers form
and organize a union.
In this regard we note, that as the State is quite cognizant
of these concerns and problems affecting workers, the
policy of the State is:
1989 LIBERTY FLOUR MILLS EMPLOYEES V.
LIBERTY FLOUR MILLS G.R. NOS. 58768-70
To promote unionism to enable the workers to
negotiate with management on the same level and
with more persuasiveness than if they were to
individually and independently bargain for the
improvement of their respective conditions.
Labor and Capital do not really stand in equal footing.
The Labor is still dependent on Capital.
Offsetting this social and economic imbalance is one of
the primary objectives of the exercise of the workers’
right to self-organization.
Even in politics you will recognize na itong mga politicians
natin are heavily dependent on their votes from these
organized labor unions. There are politicians who are
elected to office because they represent the leadership in
this organized federation or national union.
The Constitution guarantees the policy of the State to
promote Unionism by first and foremost, giving the
workers the right to self-organization.
Sabi ng Constitution ‘workers we’re quite cognizant of your
concerns and grievances and we’re promoting policy of
Unionism. We want you to deal with the mgmt. more or less on
the same level, therefore, we guarantee you this right to self-
organization’ – as long as you are qualified and eligible to
be a member of a labor union.’
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The State further guarantees the policy of Unionism by
providing organized labor unions who are certified as
the Sole Exclusive Bargaining Agent [SEBA] to exercise
to right to collective bargaining.
Furthermore, the Constitution likewise guarantees the
right of the workers to engage in peaceful and lawful
concerted activities including the right to strike, in cases
of ULP as well as bargaining deadlocks.
There are so many essential features of the PH
Constitution that will spell-out the guarantees on the
policy of the State to promote unionism. You just have to
identify them. Not to mention, the rights of legitimate
labor organization under the LC.
In what establishments can EEs exercise the right to self-
organization?
If you look at LC, Art. 253, it will spell out to you long
enumeration of the coverage and EEs right to self-
organization.
ART. 253 COVERAGE AND EMPLOYEES’ RIGHT
TO SELF-ORGANIZATION
All persons employed in commercial, industrial, and
agricultural enterprises and in religious, charitable,
medical, or educational institutions, whether
operating for profit or not, shall have the right to self-
organization and to form, join or assist labor
organizations of their own choosing for purposes of
collective bargaining. Ambulant, intermittent and
itinerant workers, self-employed people, rural workers
and those without any definite employers may form
labor organizations for their mutual aid and
protection.
 Commercial – establishments engaged in the sale
of goods and services; persons employed thereat
may exercise and within the coverage of the right;
 Industrial – establishments engaged in the
processing of raw materials into finished goods,
their workers may also organize or join labor
organizations;
Ex. manufacturing establishments of tobacco into
cigarettes; of soda into soft drinks
 Agricultural – involved in farming operations
 Religious – regardless of your faith, you are also
eligible to exercise the right to self-organization;
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 Charitable – for profit or not it does not matter,
no matter how small you are as long as you’re
sizeable enough to function as a labor union, then
you may exercise the right to self-organization;
 Medical – ex. In hospitals, the nurses, doctors – as
long as they are eligible, they can exercise to right to
self-organization;
 Educational – ex. USC, UC, USJR, those private
educational institutions are also within the coverage.
Nothing in the law that defines how many workers are
needed before they can exercise the right to self-
organization. What the law defines is the eligibility or
ineligibility to exercise right to self-organization. It does
not say that establishments with less than 5 workers
cannot exercise the right. It’s available to everyone. After
all, the Constitution provides the “right of the people,
including those employed in the public and private
sectors, to form unions, associations, or societies for
purposes not contrary to law” and this right shall not be
abridged. That’s how comprehensive itong ating right to
self-organization.
Just give your own illustration of what’s considered
commercial, industrial, educational, medical and
charitable institutions.
Please also do not forget that the IRR of LC also provide
a similar provision on the coverage of the right to self-
organization.
By definition of the Labor organization, it spells out the
two-fold purpose: (1) collective bargaining; and (2)
mutual aid and protection.
A labor union, they exist for the purpose of collective
bargaining and other legitimate purpose. While in a
worker’s association they exist for mutual aid and
protection of its members other than collective
bargaining. They derived from the definition of labor
organization.
We have to know who among the employees are eligible
and not eligible to exercise the right to self-organizationn.
ART. 255 INELIGIBILITY OF MANAGERIAL
EMPLOYEES TO JOIN ANY LABOR
ORGANIZATION; RIGHT OF SUPERVISORY
EMPLOYEES
ART. 255. [245] Ineligibility of Managerial Employees
to Join any Labor Organization; Right of Supervisory
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Employees. Managerial employees are not eligible to
join, assist or form any labor organization. Supervisory
employees shall not be eligible for membership in the
collective bargaining unit of the rank-and-file
employees but may join, assist or form separate
collective bargaining units and/or legitimate labor
organizations of their own. The rank and file union and
the supervisors' union operating within the same
establishment may join the same federation or national
union.
Note: Art. 255 of the LC, provides for the non eligibility of
the managerial employees to join a labor organization.
Also classifies the other employees for purposes of labor
relations.
IOW, the LC provides for a three tiered classification of
employees.
(1) Managerial Employees (ME)-is one who is vested
with the powers or prerogatives to lay down and execute
management policies and/or to hire, transfer, suspend,
lay-off, recall, discharge, assign or discipline employees.
(2) Supervisory Employees (SE)-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.
(3) Rank and File Employees (R&F) - all employees not
listed within any of the above definitions are considered
R&F employees for purposes of this book. If you are
neither managerial nor supervisory employee then you
are classified as R&F.
Who among the employees are eligible and ineligible to exercise
the right to self-organization?
When it comes to Supervisory Employees, they act in the
interest of the employer. They can effectively
recommend. It's not just mere recommendation but
effectively recommend of such managerial actions if the
exercise of authority is not merely routinary or clerical
but requires the use of independent judgment.
Between a supervisory and a R&F the former exercises
independent judgement while the latter performs merely
routinary or clerical job and does not require independent
judgement.
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In labor standards, there is only two clear classification
of employees. We have managerial and R&F employees.
When you speak of managerial employees they include
officers or members of the managerial staff. In labor
relations, there only three classification.
Art. 255 of the LC, there is absolute disqualification not to
join, assist or form any labor organization. The SC said
that the reason for disqualification is conflict of interest.
If you are a managerial employee, obviously you are
acting in the interest of the employer. You could be the
employer yourself or at least acting in the interest of
employer.
As I've said, when you are the ME, you are charge with
the formulation and execution of management policies.
The power to hire, dismiss, suspend, lay off, discharge
and exercise other management prerogative. You cannot
form, join or assist a labor union because it exist for the
purpose of collective bargaining. The ME, cannot bargain
with himself. It cannot bargain with another person
which is his employer due to conflict of interest.
Since the law speaks of Labor Organization, it also
disqualifies a ME from forming, joining or assisting in the
formation of a workers association. They are also
disqualified from dealing with management regarding
terms and conditions such as wages and hours of work.
They are the one supposed to implement and execute
these terms and conditions of employment.
The disqualification is very broad. You are prohibited
from forming, joining or assisting in the formation of a
labor union and forming, joining or assisting in the
formation of a workers association.
Earlier on, we define a labor organization to include not
only a labor union but also workers association.
Under the LC, supervisory employees, shall not be
eligible for membership in the collective bargaining
unit of the rank-and-file employees but may join, assist
or form separate collective bargaining units and/or
legitimate labor organizations of their own.
If you are a SE, you may form or organize your own
collective bargaining unit and/or legitimate labor
organizations of your own. It's exclusively for the
supervisory employees and prohibited from joining the
collective bargaining unit of the R&F employees. Again,
due to conflict of interest.
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The conflict of interest involve two major areas: (1)
collective bargaining (2) area of discipline. If you are a
supervisor, the R&F employees usually reports to the
immediate supervisor.
As the supervisor, you can just imagine if you allow the
supervisor to join the R&F bargaining unit. The
supervisor who is supposed to act in the interest of the
employer will necessarily betray the loyalty that he owes
to his employer if you were to allow him to join the R&F.
In the same way that if he joins the R&F union, it will also
be unfair and will be a disadvantage to the R&F union if
the supervisor will remain loyal to management because
he will be acting as spy for or against the R&F union.
Usually alam mo naman ang mga supervisor sipsip yan sila sa
management. They might tell the management that the
R&F employees are planning to strike. That might
hamper the exercise of right to self-organization.
To avoid the situation, the law declares this supervisory
employees not eligible. From that provision of the LC, it’s
quite clear that the only employee left would be the R&F
employees. No disqualification at all.
For the SE, I would call that a relative disqualification.
Not absolute disqualification, only relative.
Just imagine in a certain establishment where there exist
a collective bargaining unit of SE and R&F employees,
there could be a union of SE and another union for R&F.
This is how the law strengthens the workers right to self-
organization. By allowing in a certain establishment to
have at least two labor organizations. One, R&F labor
union and second, SE labor union. That's how strong it is
because what is left there is the ME.
If the R&F and SE decide to go on strike you can just
imagine the disruption of the operation of the
establishment. The establishment cannot run operations
with only the managers.
The last sentence of Art. 255, the R&F union and the
supervisors' union operating within the same
establishment may join the same federation or national
union.
Before the amendment to Art. 255, the law does not allow
due to conflict of interest a R&F union from being
affiliated or created as a local or chapter by the same
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federation or national union as the supervisors union. It
is prohibited due to conflict of interest.
IOW, in an establishment the federation or national
union, it cannot create a local or chapter of the R&F
employees or create a local or chapter of the supervisors.
It is not allowed before but because of the amendment to
Art. 255 strengthening the right of workers to self –
organization.
It is quite clear that that doctrine of the SC has already
been abandoned because expressly as it is written under
the law that R&F union and the supervisors union
operating within the same establishment they may join
the same federation or national union. It simply means
that a federation or national union can create in the same
establishment the R&F union as a local or chapter, can
create in the same establishment a local or chapter of the
supervisory employees. These two separate unions will
now owe loyalty to one and the same federation or
national union. That is what makes it stronger fir this
federation or national union in increasing their
bargaining power in dealing with management regarding
terms and conditions of employment of those workers
within its organization.
EXAMPLE: I am from USC College of Law and I was able
to form and organize a R&F union among the faculty
members. While the supervisors were able to form and
organize likewise their own separate union. Both of us
can become an affiliate of the federation or national union
assuming that we are both independently registered or
we could simply approach the federation or national
union to create us as a local or chapter and also to create
among the supervisory employees another local or
chapter from the same federation or national union.
That’s how stronger it is. Ang maiiwan jan si dean Glenn
Capanas who obviously is considered a managerial
employee. Kami mga R&Ffaculty members, we are just
R&F employees, we do not exercise independent
judgment, our job is actually clerical or ordinary in
nature. The school assigns us the subjects in which we
have no choice, the school assigns us the class schedule in
which we have no choice, the school subjects us to
discipline in which we have no choice, we are basically
neither managerial nor supervisory employees but mere
R&F faculty members.
TN: Ask yourself based on the definition of terms, Am I a
managerial employee? AM I a supervisory employee? Or
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Am I just a merely R&F? (Who am i? ito lang naman ako
simpleng tao :3) That is relevant in determining whether
you are eligible or not eligible to form or organize or assist
in the formation of a labor union.
What about alien employees (non-resident aliens)? Under the
LC, alien employees particularly the non-resident aliens
who are allowed to work in the PH provided that they
secure Alien Employment Permit (AEP) from the DOLE.
So, under the implementing rules, Alien Employees (AE)
with valid permits issued by the DOLE, if they are
nationals of the country which grants the same or similar
rights to Filipino workers as certified by DFA of which
has ratified ILO convention No. 87 referring to the
freedom of association and right to organize and ILO
convention No. 98 referring to the right to organize and
collective bargaining. They may also exercise the right to
join or assist in the formation of a labor organization but
not to form their own labor organization.
TESTIMONY: Based on my experience, I get to see one
wherein this non-resident alien decided to join a union of
R&F employees or decided to join the union of
supervisory employees. Most of the aliens that are here in
the PH, they are usually holding managerial positions.
There are also Non-resident Aliens (NRA) who are
holding supervisory positions, they are eligible to join the
union of supervisory employees if there is one in the
establishment. In my experience, I get to see one. After all,
even if they exercise the right to self-organization, well
since their employment is usually for a term and their
stay in the PH is usually co-terminus with their working
VISA, the likelihood of them exercising to self-
organization is farfetched from happening. Maybe those
are the reasons why they don’t do so but they are eligible
to join or assist in the formation of a labor organization if
they are so minded.
How soon is an employee, supervisory employee or R&F
employee eligible to be a member of a labor organization? TN:
Under the implementing rules, “for purposes of the
section as to who may join labor unions and worker’s
associations, any employee whether employed for a
definite period or not shall beginning on the first day of
his or her service be eligible for membership in any
labor organization.”
For purposes of membership, in a labor organization
whether it is a labor union or a worker’s organization, on
the first day of service of an employee where he or she is
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employed for a definite period or not, he or she is
considered eligible in the eyes of the law. Btw, these
supervisory employees and R&F employees, it does not
make any distinction whether they are regular or non-
regular, even a casual employee, even a project or
seasonal employee may be a member of a labor
organization unless he or she is declared ineligible under
the law.
On the first day of service, the law recognizes the right
of these employees to be a member of a labor
organization regardless of his or her status. So casual yan,
pwede. Project, seasonal, pwede. Fixed term employee, pwede.
All decided to form, organizes or assists in the formation
of a labor organization. In fact, the implementing rules
also mentioned all other workers including ambulant and
other workers, self-employed, rural workers and those
without definite employers formed labor organization for
the mutual aid and protection and other legitimate
purposes except collective bargaining.
The ambulant workers that you see on the street, itinerant
workers—they come and go whenever they sell their
goods and services, they may exercise the right to self-
organization, they can form a labor organization but only
for purposes of mutual aid and protection.
EXAMPLE: “Market Vendors Association of the PH”,
“Balot Association of the PH Labangon Chapter”
What could be the primary purposes in doing so? They could
probably lobby with Congress for the enactment of
pieces of social legislation that will uplift and protect
the rights and welfare. In fact, collective action is better
than individual action.
EXAMPLE: Market vendor ka nagiisa ka lang, you will be
helpless in dealing with the government but if you form
and organize your vendors’ association, market vendors
association for example that is still consistent with the
right to association. You can always use that vehicle to
lobby with Congress pieces of legislation that will for
enactment of social protect your rights and welfare.
Maganda itong right to association which includes the
right to self-organization.
Between the right to association and the right to self-
organization, mas limited yung right to self-organization
because the right to self-organization more often than not,
it connotes unionism-- unionism contemplating of a labor
union existing for a purpose of collective bargaining.
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Pagdating naman sa right to association, it is available to
all people whether they are employed or not employed,
they can always form their association as long as they
intended not contrary to law, it is still protected by the
Constitution.
Aside from the managerial employees who are not eligible to
form, join or assist a labor organization, are there other
classification of employees that are disqualified? In one SC
case, he SC mentioned of the disqualification of
employees. Confidential employees not eligible to form,
join or assist a labor organization in the same logic as
managerial employees.
Pag confidential employee ka, you are usually entrusted
with confidential matters by management in relation to
labor relations and by the nature of your position you will
be in conflict of interest with management if you were to
be allowed to form, join or assist a labor organization.
COCA-COLA BOTTLERS PHILIPPINES, INC. vs.
ILOCOS PROFESSIONAL AND TECHNICAL
EMPLOYEES UNION (IPTEU)
FACTS:
Petitioner Coca-Cola Bottlers Philippines, Inc. (CCBPI)
is a domestic corporation duly organized and
operating under the Philippine laws. On the other
hand, respondent Ilocos Professional and Technical
Employees Union (IPTEU) is a registered independent
labor organization with address at CCBPI Ilocos Plant
in Barangay Catuguing, San Nicolas, Ilocos Norte. On
July 9, 2007, IPTEU filed a verified Petition6 for
certification election seeking to represent a bargaining
unit consisting of approximately twenty-two (22) rank-
and-file professional and technical employees of
CCBPI Ilocos Norte Plant. CCBPI prayed for the denial
and dismissal of the petition, arguing that the
employees being referred to by IPTEU are either
supervisory or confidential employees-- hence,
ineligible for inclusion as members of IPTEU.
Convinced that the union members are rank-and-file
employees and not occupying positions that are
supervisory or confidential in nature, Mediator-
Arbiter Florence Marie A. Gacad-Ulep granted
IPTEU'S petition. (August 23, 2007 ) On September 3,
2007, CCBPI filed an appeal before the Secretary of
Labor and Employment (SOLE). In the Pre-election
Conference held on September 10, 2007, CCBPI and
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IPTEU mutually agreed to conduct the certification
election on September 21, 2007. On election day, only
sixteen (16) of the twenty-two (22) employees in the
IPTEU list voted. However, no votes were canvassed.
CCBPI filed and registered a Protest questioning the
conduct and mechanics of the election and a Challenge
to Votes on the ground that the voters are supervisory
and confidential employees. By agreement, the parties
met on September 26, 2007 for the opening and
counting of the challenged votes. On said date, CCBPI
filed a motion for inhibition, which the Mediator-
Arbiter verbally denied on the grounds that it was not
verified and would cause undue delay on the
proceedings as there are no other Mediators-Arbiters
in the Region. The parties were informed that their
agreement to have the ballots opened could not bind
the Mediator-Arbiter. Instead, they were directed to
submit additional evidence that would aid in the
resolution of the challenged votes. On October 22, 2007,
the Mediator-Arbiter denied CCBPI's challenge to the
16 votes. She found that the voters are rank-and-file
employees holding positions that are not confidential
in nature, and who are not, or used to be, members of
Ilocos Monthlies Union (IMU) due to the
reclassification of their positions by CCBPI and have
been excluded from the CBA entered into by IMU and
CCBPI from 1997 to 2005. Consequently, the
challenged votes were opened and canvassed. After
garnering 14 out of the 16 votes cast, IPTEU was
proclaimed as the sole and exclusive bargaining agent
of the rank-and-file exempt workers in CCBPI Ilocos
Norte Plant. CCBPI elevated the case to the SOLE, but
was denied. Confronted with an adverse ruling, CCBPI
filed before the CA a petition for certiorari with prayer
for temporary restraining order and writ of
preliminary injunction. On March 17, 2010, the Court
of Appeals denied the petition. CCBPI filed a motion
for reconsideration, which was also denied in the
September 16, 2010 Resolution; hence, this petition.
ISSUE:
Is the CA correct in affirming SOLE’s resolution
dismissing petitioner’s appeal that assailed the
Decision (On the Challenged Voters)
RULING:
Yes. The determination of factual issues is vested in the
Mediator-Arbiter and the Department of Labor and
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ATTY. JMM | A.Y. 2020 – 2021
Employment. Pursuant to the doctrine of primary
jurisdiction, the Court should refrain from resolving
such controversies unless the case falls under
recognized and well-established exceptions. The
doctrine of primary jurisdiction does not warrant a
court to arrogate unto itself the authority to resolve a
controversy the jurisdiction over which is initially
lodged with an administrative body of special
competence.
In this case, organizational charts, detailed job
descriptions, and training programs were presented by
CCBPI before the Mediator-Arbiter, the SOLE, and the
CA. Despite these, the Mediator-Arbiter ruled that
employees who encounter or handle trade secrets and
financial information are not automatically classified
as confidential employees. It was admitted that the
subject employees encounter and handle financial as
well as physical production data and other information
which are considered vital and important from the
business operations' standpoint. Nevertheless, it was
opined that such information is not the kind of
information that is relevant to collective bargaining
negotiations and settlement of grievances as would
classify them as confidential employees. The SOLE,
which the CA affirmed, likewise held that the
questioned voters do not have access to confidential
labor relations information.
Doctrine: Access to vital information is the imperative
consideration in determining whether or not an
employee is a confidential employee. An employee
must assist or act in a confidential capacity and obtain
confidential information relating to labor relations
policies. Exposure to internal business operations of
the company is not per se a ground for the exclusion in
the bargaining unit.
(from foot notes)
Confidential employees are defined as those who (1)
assist or act in a confidential capacity, in regard (2) to
persons who formulate, determine and effectuate
management policies in the field of labor relations.
The exclusion from bargaining units of employees
who, in the normal course of their duties, become
aware of their management policies relating to labor
relations is a principal objective sought to be
accomplished by the “confidential employee rule”
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The rationale for their separate category and
disqualification to join any labor organization is
similar to the inhibition for managerial employees
because if allowed to be affiliate d with a union, the
latter might not be assured of their loyalty in view of
evident conflict of interests and the union can also
become company-denominated with the presence of
managerial employees in the union membership.
Having access to confidential information, confidential
employees may also become the source of undue
advantage. Said employees may act as a spy or spies of
either party to a collective bargaining agreement.
Full text: G.R. No. 193798, September 09, 2015 - COCA-
COLA BOTTLERS PHILIPPINES, INC., Petitioner, v.
ILOCOS PROFESSIONAL AND TECHNICAL
EMPLOYEES UNION (IPTEU), Respondent. : September
2015 - Philipppine Supreme Court Decisions
(chanrobles.com)
EXAMPLE: If you are a supervisor, but at the same time
your employment is considered confidential because of
your duties and responsibilities you are not eligible. If
you are a R&F employee, well generally, you are eligible
but if you are a confidential employee because of the
nature of your duties and responsibilities, you are
likewise not eligible to form, join or assist in the formation
of a labor organization.
What is the reason why they are disqualified? The SC said
that under the doctrine of necessary implication, since
confidential employees take the same position as
managerial employees, they are deemed disqualified by
reason of conflict of interest.
Can you just imagine a R&F confidential employee
becoming a member of the R&F union but at the same
time being too loyal with management, which will of
course hamper the interest of the R&F bargaining union.
It will be to the disadvantage of the R&F bargaining
union.
Same goes if you allow him to be a member to the R&F
union, it will be prejudicial to the management as well
because he holds confidential information that he can
used against the management. So, to avoid that situation
from arising, the SC said that they are also deemed
disqualified under the doctrine of necessary implication.
Whether a R&F employee or supervisory employee, if
you are a confidential employee which means that you
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ATTY. JMM | A.Y. 2020 – 2021
assist or in a confidential capacity in regard to persons
who formulate, determine or effectuate management
policies specifically in labor relations, then you are not
eligible to form, join or assist in a labor organization.

TN: The confidential relationship must exist between the

employee and his superior officer and that officer must
handle the prescribe responsibilities relating to labor
relations.

What is the minimum qualification to be a member of a labor

union? What are the disqualifications for an employee to be an
officer of a labor union?

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