ADAMSON UNIVERSITY

College of Law

LABOR RELATIONS
Saturday, 9-12

Assistant Ombudsman Leilanie Bernadette C. Cabras

I. Constitutional and Statutory Basis

a. Sections 10 and 18, Article II of the Constitution

b. Section. 3, Article XIII of the Constitution

c. Article 4 of the Labor Code

II. REVIEW OF ELEMENTS OF EMPLOYER-EMPLOYEE RELATIONSHIP

1. "Employee" - Article 212 (e) of the Labor Code
2. "Employer" - Article 212 (f) of the Labor Code

III. Jurisdiction

SMC vs. NLRC (61 SCRA 719 [G.R. No. 80774])

Pepsi vs. Galang (G.R. No. 89621 [24 September 1991])
Medina vs. Castro Bartolome (116 SCRA 597 [G.R. No. 59825])
Urbanes vs. Secretary of Labor (G.R. No. 122791 [19 February 2003])
Yusen Air and Sea Service Philippines vs. Villamor (G.R. No. 154060 [16 August 2005])

1. Regional Director (Articles 129 and 217 of the Labor Code)

2. Labor Arbiter
Article 217 (a) of the Labor Code
 Bañez vs. Hon. Valdevilla[GR No. 128024 [ 09 May 2000]

3. Bureau of Labor Relations

Article 226 of the Labor Code
 Mariño vs. Gamilla(G.R. No. 132400 [31 January 2005])

4. Voluntary Arbitrator (Article 261 of the Labor Code)

5. National Conciliation and Mediation Board

Book 5, Rule 13, Section 3 of the implementing rules

IV. Labor Dispute

(Article 212 (l) of the Labor Code)

SMC Employee Union vs. Bersamira

(G.R. No. 87700 [1990])

V. RIGHT TO SELF-ORGANIZATION

1. Constitutional and statutory basis

1.1 Section 8, Article 3 and Section 3, Article 13 of the 1987 Constitution

 1.2 Labor Code, Articles 243 to 246

o Vassar Industrial Employees Union vs. Estrella (82 SCRA 280 [1978])
o Tropical Hut Employees Union vs. Tropical Hut (181 SCRA 173 [1990])
o Rance vs. NLRC (163 SCRA 279 [1988])
o Sampang vs. Inciong (137 SCRA 56 [1985])
o Philippine Skylanders, Inc. vs. NLRC ([G.R. No.
 127374 [31 January 2002])
o UST Faculty Union vs. Bitonio
 (GR No. 131235 [16 November 1999])
o Victoriano vs. Elizalde
 (59 SCRA 54 [1974])
o Kapatiran sa Meat & Canning Division vs. Calleja (162 SCRA 367 [1988])

2. Applicability to specific types of employees

2.1 Managerial Employees

 United Pepsi Cola vs. Laguesma (288 SCRA 15 [1998])
 NATU-RPB vs. Torres (GR No. 93468 [29 December 1994])

2.2 Confidential Employees

o SMC vs. Laguesma (GR No. 110399 [15 August 1997])
o Sugbuanon Rural Bank, Inc. vs. Laguesma (GR No. 116194 [02 February 2000])

2.3 Employee-Members of Cooperatives

 Cooperative Rural Bank of Davao City vs. Ferrer-Calleja (GR No. 77951, 26 September 1988]

2.4 Government Employees

 Arizala vs. CA (GR Nos. 43633-34 [14 September 1990])
 SSSEA vs. CA (GR No. 85279 [28 July 1989])

2.5 Supervisory Employees

 Atlas Lithographic vs. Laguesma (GR No. 96566 [06 January 1992])
 PHILPOS vs. Torres (231 SCRA 335 [1994])

2.6 Security Guards

 Philips Industrial vs. NLRC (GR No. 88957 [25 June 1992])

VI. LABOR ORGANIZATION

1. Definitions

1.1 Labor organization - Art. 212 (g)

1.2 Legitimate labor organization - 212 (h)

1.3 Company union - Art. 212 (i)

 Villar vs. Inciong (121 SCRA 444 [1983])
 Progressive Development vs. Secretary(205 SCRA 802 [1992])
 Pagpalain Haulers, Inc. vs. Trajano (GR No. 133215 [15 July 1999])

2. Rationale for unionization

o United Seamen's Union vs. Davao Shipowners Assn. (20 SCRA 1226 [1967])
o University of Pangasinan vs. NLRC 218 SCRA 65
3. Bargaining Unit
Article 255 of the Labor Code
o University of the Philippines vs. Ferrer-Calleja (211 SCRA 451)
o Mechanical Department Labor Union vs. CIR (24 SCRA 925)
o Golden Farms vs. Secretary of Labor (234 SCRA 517)
o Philtranco Services Enterprises vs. BLR (174 SCRA 388)
o SMC Supervisors vs. Laguesma (GR No. 110399 [15 August 1997[)
o Belyca Corporation vs. Ferrer Calleja (GR No. 77395 [29 November 1988])
o Philippine Scout Veterans vs. Secretary (224 SCRA 682)

4. Union registration and procedure

Book III of DO No. 40-03 (Series of 2003)
Republic Act No. 9481 (25 May 2007)

o PAFLU vs. Sec. of Labor(27 SCRA 41 [1969])

o Toyota Motor Philippines Corporation vs. TMPC Labor Union (GR No. 121084 [19 February 1997])
o Toyota Motor Philippines Corporation vs. TMPC Labor Union (GR No. 135806 [08 August 2002])
o Tagaytay Highlands vs. Tagaytay Highlands Employees Union(GR No. 142000 [22 January 2003])

4.1 Registration of an Independent Labor Union

Section 2 [a] of Book III of DO No. 40-03

4.2 Registration of Federations and National Unions

Section 2 [b] of Book III of DO No. 40-03

4.3 Registration of a Workers' Association

Section 2 [c] of Book III of DO No. 40-03

Action on Application
Book IV of Department Order No. 40-03 (Series of 2003)
Articles 235 and 236 of the Labor Code

Reportorial Requirements
Book V of Department Order No. 40-03 (Series of 2003)
Articles 238 and 239 of the Labor Code

4.4 Rights and conditions of membership

Articles 241 and 274 of the Labor Code

a. Governing Law
Oca vs. Trajano (200 SCRA 399 [1991])

b. Rights and Obligations of Members

 Ferrer vs. NLRC(224 SCRA 410 [1993])
 Tancinco vs. Ferrer-Calleja(157 SCRA [1988])
 Halili vs. CIR(136 SCRA 112 [1985])
 Palacol vs. Ferrer-Calleja(182 SCRA 710 [1990])
 Volkschel Labor Union vs. BLR(137 SCRA 42 [1985])
 ABS-CBN Supervisory Union vs. ABS-CBN Broadcasting (304 SCRA 489 [1999])

c. Remedies for Violation of Rights

o Litton Mills Employee's Association vs. Ferrer-Calleja (167 SCRA 804 [1988])
o Villar vs. Trajano (144 SCRA 245 [1986])
o Pepsi Cola Sales & Advertising Union vs. Secretary (211 SCRA 843 [1992])
o Rodriguez vs. Galvadores (GR No. 76579-82 [1988])
VII. CERTIFICATION ELECTION PROCEEDINGS

1. Generally

1.1 Role of the Employer

o PT&T vs. Laguesma (223 SCRA 452)
o SM Foods, Inc. vs. Laguesma(G.R. No. 116172 [1996])

2. Certification election
o FOITAF vs. Noriel (72 SCRA 24)
o Airline Pilots vs. CIR(76 SCRA 274)
o Reyes vs. Trajano(209 SCRA 484)
o Phil. Fruits And Vegetable Ind. vs. Torres (GR No. 92391[03 July 1992])
o National Mines Allied Workers vs. Secretary(227 SCRA 821)
o Militante vs. NLRC(246 SCRA 365)
o Sandoval Shipyards, Inc. vs. Pepito (GR No. 143428 [25 June 2001])

2.1 Other kinds of Recognition of Employee Representatives

a. Direct Certification
 Central Negros vs. Secretary(201 SCRA 584)

b. Voluntary Recognition
(Rule VII of Department Order No. 40-2003)
 Ilaw at Buklod ng Manggagawa vs. Calleja(182 SCRA 561)

c. Consent Election
(Section 23, Rule VIII of Department Order No. 40-2003)
 Aligre vs. De Mesa(237 SCRA 647)

d. Run-off Election
(Rule X of Department Order No. 40-2003)
 Confederation of Citizens Labor Unions vs. Noriel(GR L-56902[21 September1982])

3. Bars to Certification Election

(Book V, Rule XI Section 11 and Rule 15 Sections 3 and 4 of the Implementing Rules of the Labor Code)
 NACUSIP-TUCP vs. Trajano(208 SCRA 118)
 Capitol Medical Center ACE vs. Laguesma(267 SCRA 503)
 NACUSIP-TUCP vs. Ferrer-Calleja(205 SCRA 478)
 ALU vs. Ferrer-Calleja(173 SCRA 178)
 Firestone vs. Estrella(81 SCRA 49)
 United CMC vs. BLR(128 SCRA 593)
 Progressive Development vs. Secretary(271 SCRA 593)

VIII. COLLECTIVE BARGAINING AND ADMINISTRATION OF AGREEMENT

1. Collective Bargaining Agreement

o TUCP vs. Laguesma (GR No. 95013 [21 September 1994])
o Davao Integrated Port vs. Abarquez(220 SCRA 197)
o E. Razon vs. Secretary(222 SCRA 1)
o Liberty Flour Mills EA vs. Liberty Flour Mills(180 SCRA 668)
o Metrobank Union vs. NLRC(226 SCRA 268)
o SMTFM-UWP vs. NLRC (GR No. 113856 [07 September 1998])
 2. Duty to Bargain Collectively
Articles 251, 252,253 and 250 of the Labor Code

o Lakas ng Mangagawa vs. Marcelo Enterprises(118 SCRA 425)

o National Union of Restaurant Workers vs. CIR(10 SCRA 843)
o ALU vs. Ferrer-Calleja(173 SCRA 178)
o Kiok Loy vs. NLRC(141 SCRA 179)
o SMC Employees Union vs. Confesor(262 SCRA 81)
o Mindanao Terminal vs. Confesor(GR No. 111809 [05 May 1997])
o University of the Immaculate Concepcion, Inc. vs. Secretary (G. R. No. 146291 [23 January 2002])
o Divine Word University vs. NLRC(213 SCRA 759)
o Nestle Philippines vs. NLRC(193 SCRA 504)

3. Administration of the CBA; Grievance and Voluntary Arbitration

Articles 212 (n), 260, 261, 262 (b), 277 (f) (g) &(h)
o Mactan Workers Union vs. Aboitiz(45 SCRA 577)
o Juat vs. CIR(GR No. L-20764 [29 November 1965])
o Rizal Labor Union vs. Rizal Cement Company, Inc.(GR No. L-19779 [30 July 1966])
o Ferrer vs. NLRC(224 SCRA 410 [1993])
o MSMG-UWP vs. Ramos(G.R. No. 113907 [28 February 2000])
o Benguet Consolidated vs. BCI Employees(23 SCRA 361)
o Vivero vs. CA (GR No. 138938 [24 October 2000])
o Sanyo vs. Canizares(211 SCRA 361)
o San Miguel Corporation vs. NLRC(GR No. 99266 [02 March 1999])
o Maneja vs. NLRC(GR No. 124013 [05 June 1998])
o Ludo and Luym Corporation vs. Saornido(GR No. 140960 [20 January 2003]
o Sime Darby vs. Magsalin(180 SCRA 177)
o Imperial Textile Mills vs. Sampag(219 SCRA 651)
o Continental Marble vs. NLRC(161 SCRA 151)
o Luzon Development Bank vs. Association(249 SCRA 162)

4. Labor-Management Cooperation Schemes

Arts. 277 (h); B5 and B21

IX. UNFAIR LABOR PRACTICE

1. Concept
Art. 247 of the Labor Code

2. Unfair Labor Practice of Employers

Art. 248 and 261 of the Labor Code

 Insular Life Assurance Co. EA vs. Insular Life Assurance Co (37 SCRA 244 [1971])
 Steam Navigation vs. Philippine Marine Officer's Guild (15 SCRA 174 [1965])
 Visayan Bicycle vs. National Labor Union(14 SCRA 5 [1965])
 Judric Canning vs. Inciong(115 SCRA 887 [1982])
 Manila Hotel Co. vs. Pines Hotel Employees Asso.(47 SCRA 88 [1972])
 Wise & Co. vs. Wise & Co. Employees Union(GR No. L-87672 [13 October 1989])
 Sime Darby Philipinas, Inc. vs. NLRC(GR No. 119205 [15 April 1998])
 Alhambra Industries vs. CIR(35 SCRA 550 [1970])
 Balmar Farms vs. NLRC(202 SCRA 648 [1991])

3. Unfair Labor Practice of Labor Organizations

Art. 249 of the Labor Code
 o Salunga vs. CIR(21 SCRA 216 [1967])
o United vs. Torres(26 SCRA 435 [1969])
o Manila Mandarin Employees Union vs. NLRC(GR No. 76989 [29 September 1987])

X. STRIKES, LOCKOUTS AND CONCERTED ACTIONS

1. Generally
 Gold City Integrated Port Services vs. NLRC(245 SCRA 627)
 Lapanday Workers Union vs. NLRC(248 SCRA 95)
 Ilaw at Buklod vs. SMC(198 SCRA 586)

2. Strikes
(Articles 212, 263-266 of the Labor Code)

a. Concept and Scope

o ALU vs. Borromeo(26 SCRA 88)
o Panay Electric Company, Inc. vs. NLRC(GR No. 102672 [04 October 1995])
o MSF Tire And Rubber, Inc. vs. CA (GR No. 128632 [05 August 1999])
o Complex Electronics Employees Association vs. NLRC (GR No. 121315 and 122136 [19 July 1999])
o Liwayway vs. Permanent Concrete Workers Union(100 SCRA 161)
o Bascon vs. CA (G.R. No. 144899 [05 February 2004])
o Amalgamated Food Employees Union v. Logan Valley Plaza 391 U.S. 308 [20 May 1968])

b. Requisites for a Valid Strike

 National Federation of Sugar Workers vs. Ovejera(114 SCRA 354)
 First Interlink Transportation vs. Confessor(272 SCRA 124)

3. Assumption of Jurisdiction; Return to Work Order

o Philtread Workers vs. Confessor(269 SCRA 393)

o PSBA vs. Noriel(164 SCRA 402)
o University of Immaculate Conception, Inc. vs. Secretary (GR No. 151379 [14 January 2005])
o TASLI-ALU vs. CA(GR No. 145428 [07 July 2004])
o PLDT vs. Manggagawa Ng Komunikasyon Sa Pilipinas (GR No. 162783 [14 July 2005])
o St. Scholastica vs. Torres (210 SCRA 565)
o International Pharma. vs. Secretary (205 SCRA 59)
o Union of Filipro Employees vs. Nestle Philippines(GR No. 88710-13 [13 December 1990])
o Reformist Union vs. NLRC (266 SCRA 713)

4. Consequences of a Strike

o SMC vs. NLRC(GR No. 119293 [10 June 2003])

o Bascon vs. CA (G.R. No. 144899 [05 February 2004])
o Shell Oil Worker's Union vs. Shell Co.(G.R. No. L-30658-59 [31 March 1976])
o Bacus vs. Ople(GR No. L-56856 [23 October 1984])
o First City Interlink vs. Confesor(272 SCRA 124)
o Telefunken Semiconductors vs. Secretary (GR Nos. 122743 and 127215 [12 December 1997])
o PNOC Dockyard vs. NLRC(GR 118223 [26 June 1998])

XI. REVIEW OF TERMINATION OF EMPLOYMENT

1. Generally
 Esmalin vs. NLRC(177 SCRA 537)
 Navarro III vs. Damasco(246 SCRA 260)
2. Grounds For Termination

2.1 Just Causes for termination

Article 282 of the Labor Code

2.1.1 Serious misconduct/gross insubordination

 Manebo vs. NLRC(229 SCRA 240)

 Aguilar vs. NLRC(216 SCRA 207)

2.1.2 Abandonment
 Jardine Davies vs. NLRC(225 SCRA 757 [1993])
 Jackson Bldg. vs. NLRC(246 SCRA 329 [1995])
 Arc-Med Food vs. NLRC(GR No. 113721 [07 May 1997])

2.1.3 Loss of Confidence/Breach of Trust

 PCIB vs. NLRC(247 SCRA 617 [1995])
 Concorde Hotel vs. CA([GR No. 144089 [09 August 2001])
 Aurelio vs. NLRC(221 SCRA 432 [1993])
 Etcuban vs. Sulpicio Lines(GR No. 148410 [17 January 2005])

2.1.4 Habitual absences/tardiness

 Worldwide Papermills vs. NLRC(244 SCRA 125 [1995])

2.1.5 Fraud/Serious Misconduct

 Austria vs. NLRC(GR No. 124382 [16 August 1999])
 Felix vs. Enertech Systems Industries, Inc. (GR No. 142007 [28 March 2001])

2.1.6 Analogous Causes

 PAL vs. NLRC(GR No. 62961 [02 September 1983])

2.2 Authorized Causes for termination

Articles 283 and 284 of the Labor Code

 JPL Marketing Promotions vs. NLRC(G.R. No. 151966 [July 2005])

2.2.1 Redundancy
 Almodiel vs. NLRC(223 SCRA 341 [1993])
 Asia World Publishing House, Inc. vs. Ople(GR No. L-56398 [23 July 1987])
 Sebuguero vs. NLRC(248 SCRA 532 [1995])

2.2.2 Retrenchment or business reverses

o North Davao Mining vs. NLRC (GR No. 112546 [13 March 1996])
o Balasbas vs. NLRC (212 SCRA 803)
o Revidad vs. NLRC (245 SCRA 356 [1995])
o Businessday vs. NLRC (221 SCRA 9)
o National Federation of Labor vs. NLRC (GR No. 127718 [02 March 2000])

2.2.3 Disease
 Cebu Royal Plant vs. Deputy (GR No. L-58639 [12 August 1987])

2.3 Other grounds

 2.3.1 Merger or consolidation with another company
 Manlimos vs. NLRC(242 SCRA 145 [1995])

2.3.2 Resignation
 Sicangco vs. NLRC(235 SCRA 96)

2.3.3 Immorality/Sexual Harassment

 Santos vs. NLRC(GR No. 115795 [06 March 1998])

 Chua-Qua vs. Clave(189 SCRA 117 [1990])

3. Special circumstances:

3.1 Preventive suspension

 JRS Business vs. NLRC(246 SCRA 445 [1995])

3.2 Constructive dismissal

 Gaco vs. NLRC(230 SCRA 260)
 Ledesma vs. NLRC(246 SCRA 77)
 Phil-Am Life vs. Gramaje(GR No. 156963 [11 November 2004])

3.3 Floating status

 Lucky Textile Mills vs. NLRC(229 SCRA 324)

3.4 Last-In First-Out (LIFO) rule

 Maya Farms Employees Org. vs. NLRC(239 SCRA 508)

3.5 Totality of infractions rule

 Mendoza vs. NLRC(195 SCRA 606 [1991])
 Villeno vs. NLRC(GR No. 108153 [26 December 1995])
 MERALCO vs. NLRC(GR No. 114129 [24 October 1996])
 Valiao vs. CA (GR No. 146621 [30 July 2004])

4. Procedure to Terminate Employment

Art. 282 of the Labor Code

4.1 Twin requirements of notice and hearing

o Century Textile Mills vs. NLRC(161 SCRA 528)
o Abiera vs. NLRC(215 SCRA 540)
o Del Monte Philippines, Inc. vs. Saldivar (G.R. No. 158620 [11 October 2006])
o King of Kings Transport vs. Mamac(G.R. No. 166208 [29 June 2007])

4.2 Agabon doctrine

o WenPhil vs. NLRC(170 SCRA 69 [1989])
o Serrano vs. NLRC(GR No. 117040 [27 January 2000])
O Agabon vs. NLRC(GR NO. 158693 [17 NOVEMBER 2004])
o JAKA Food Processing Corporation vs. Pacot (GR No. 151378 [28 March 2005])

4.3 Burden of proof

 Segismundo vs. NLRC(239 SCRA 167 [1994])

5. Normal consequences of Illegal Dismissal

a. Reinstatement plus full backwages

Articles 223 and 279 of the Labor Code
  Bustamante vs. NLRC(GR No. 111651 [28 November 1996])
 Ferrer vs. NLRC(GR No. 100898 [05 July 1993])
 Pioneer Texturizing Corporation vs. NLRC(GR No. 118651 [16 October 1997])
 Pizza Inn vs. NLRC(GR No. 74531 [28 June 1988])
 Kunting vs. NLRC(227 SCRA 571)
 Acesite Corporation vs. NLRC (GR No. 152308 [29 January 2005])
 Manila Diamond Hotel Employees' Union vs. CA([GR No. 140518 [16 December 2004])
 Congson vs. NLRC(243 SCRA 260 [1995])
 Paguio vs. PLDT (GR No. 154072 [03 December 2002])
 Roquero vs. PAL(GR No. 152329 [22 April 2003])

b. Damages (Articles 1702, 2217 and 2232 of the Civil Code)

o Primero vs. IAC(GR No. 72644 [14 December 1987])
o Maglutac v. NLRC(GR No. 78345 [21 September 1990])

c. Attorney's fees
Article 2208 of the Civil Code and Article 111 of the Labor Code
 Taganas vs. NLRC(248 SCRA 133 [1995])
 Traders Royal Bank Employees Union vs. NLRC (GR No. 120592 [14 March 1997])

d. Separation Pay
o Lim vs. NLRC(GR No. 79907 [16 March 1989])
o Osias Academy vs. DOLE(GR No. 83234 [16 Aril 1989])
o Gustilo vs. Wyeth Philippines(GR No. 149629 [04 October 2004])

e. Worker preference (Article 110 of the Labor Code)

 DBP vs. NLRC(229 SCRA 351)
 DBP s. NLRC(242 SCRA 59 [1995])
 Prudential Bank vs. NLRC(GR No. 112592 [19 Dec. 1995])

f. Liability of corporate officers

 MAM Realty vs. NLRC(244 SCRA 797 [1995])

XI. APPEAL

1. From Labor Arbiter to NLRC

Article 217 (b), 223 and 218 (c) of the Labor Code
 Soliman Security Services, Inc. vs. CA(GR No. 143215 [11 July 2002]
 Navarro vs. NLRC(GR No. 116464 [01 March 2000])
 Viron Garments vs. NLRC(207 SCRA 339 [1992])
 Star Angel Handicraft vs. NLRC(263 SCRA 580 [1994])
 Cannette vs. NLRC(GR No. 114161 [23 November 1995])
 Diamonon vs. DOLE(GR No. 108951 [07 March 2000])

2. From NLRC to CA
Petition for Review on Certiorari (Rule 65 Rules of Court)
 St. Martin Funeral Homes vs. NLRC(GR No. 130866 [16 Sept. 1998])
 Veloso vs. China Airlines, Ltd.(GR No. 104302 [14 July 1999])

3. From CA to Supreme Court (Petition for Review on Certiorari)

Rule 45 Rules of Court
o Azucena vs. Foreign Manpower Services[GR No. 147955 [25 October 2004])
o SGS Far East vs. NLRC (286 SCRA 335 [1998])