Labor Relations Overview

I. UNIONS

Unions in the Philippines are classified into two (2) types or sectors:

1) PUBLIC SECTOR UNION or PUBLIC EMPLOYEES ORGANIZATION refers to any

organization, union or association of employees in agencies of the national
government and their regional office, attached agencies and their regional offices,
state universities and colleges, government-owned and controlled corporations with
original charters, and local government units, which exists in whole or in part for the
purpose of collective negotiations or for mutual aid, interest, cooperation and
protection1; and

2) PRIVATE SECTOR UNION or LABOR ORGANIZATION refers to any union or

association of employees in the private sector which exists in whole or in part for
the purpose of collective bargaining, mutual aid, interest, cooperation, protection, or
other lawful purposes2.

Labor Organizations are further classified into enterprise based unions (EBUs)
and workers associations. EBUs are labor organizations operating at the enterprise
level (formal sector) and composed of independent unions, affiliates and chartered
locals. 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, reported to the Regional Office and the Bureau of
Labor Relations in accordance with Rule III, Sections 6 and 7 of Department Order No.
40-03, as amended.3

Meanwhile, workers associations (informal sector) refer to an association of

workers organized for the mutual aid and protection of its members or for any legitimate
purpose other than collective bargaining.4 Workers associations can either be operating
in one or more than one region.

Table 1. NUMBER OF REGISTERED UNIONS AND MEMBERSHIP BY SECTOR BY REGION

AS OF DECEMBER 2021
PUBLIC PRIVATE PUBLIC PRIVATE
REGION
Unions % Unions % Members % Members %
PHILIPPINES 1,857 100.0 18,034 100.0 500,670 100.0 1,614,554 100.0
NCR 330 17.8 10,597 58.8 223,765 44.7 884,429 54.8
CAR 78 4.2 65 0.4 15,380 3.1 11,939 0.7
I 101 5.4 85 0.5 16,712 3.3 6,566 0.4
II 79 4.3 50 0.3 14,812 3.0 14,006 0.9
III 122 6.6 1,353 7.5 32,841 6.6 175,909 10.9
IV-A 104 5.6 2,291 12.7 21,712 4.3 203,026 12.6

1 Section 1 (u) Rule I of the Amended Rules and Regulations Governing the Exercise of the Right of Government Employees to
Organize
2 Section 1 (dd) Rule I of Department Order No. 40-03, as amended, Amending the Implementing Rules of Book V of the Labor

Code of the Philippines

3 Section 1 (b) Rule I, ibid
4 Section 1 (fff) Rule I, ibid
 PUBLIC PRIVATE PUBLIC PRIVATE
REGION
Unions % Unions % Members % Members %
IV-B 61 3.3 25 0.1 10,112 2.0 1,148 0.1
V 143 7.7 171 0.9 24,735 4.9 10,431 0.6
VI 142 7.6 655 3.6 29,604 5.9 42,365 2.6
VII 117 6.3 1,030 5.7 18,064 3.6 72,781 4.5
VIII 136 7.3 220 1.2 19,263 3.8 12,531 0.8
IX 86 4.6 116 0.6 11,676 2.3 10,198 0.6
X 94 5.1 390 2.2 16,333 3.3 43,859 2.7
XI 87 4.7 546 3.0 18,978 3.8 57,141 3.5
XII 83 4.5 222 1.2 14,352 2.9 48,388 3.0
XIII 83 4.5 112 0.6 11,332 2.3 17,217 1.1
ARMM 11 0.6 21 0.1 999 0.2 2,414 0.1
For Verification - - 85 0.5 - - 206 0.0
Source of Data: Bureau of Labor Relations (BLR) public sector union registration data, Records transmitted by DOLE Regional Offices to the BLR as of December 2021

For public sector union registrations, as of December 2021, a total of 1,857

unions were registered nationwide with 500,670 reported memberships. The number of
registered public sector unions increased by 2.1% or 38, compared to the 1,819
registrations recorded in the previous year. Moreover, the volume of union membership
was increased by 1.0% or 4,992 from 495,678 union membership in 2020.

The National Capital Region (NCR) has the highest number of registered public
sector unions amongst the regions covering 17.8% or 330 unions. It is followed by
Region V and Region VI with 7.7% or 143 unions and 7.6% or 142 unions, respectively.
In terms of membership, 44.7% or 223,765 of the total union members in the public
sector are situated in the NCR, followed by Region III with 6.6% or 32,841 reported
membership.

As of December 2021, a total of 18,034 unions were registered at the enterprise

level with reported membership of more than 1.6 million workers. Registered unions
were increased by 1.2% or 214 from 1,820 registrations in the previous year.

As shown in Table 1, most of the unions in the private sector are in the NCR
covering 58.8% of the total registered unions nationwide or equivalent to 10,597
registrations. It is followed by Region IV-A with 12.7% or 2,291 registered unions. In
terms of union memberships, the NCR and Region IV-A were also recorded with the
highest numbers covering almost 54.8% (884,429 members) and 12.6% (203,026
members), respectively.

Table 2. NUMBER OF REGISTERED WORKERS’ ASSOCIATIONS OPERATING

IN ONE REGION BY REGION AS OF DECEMBER 2021

Workers’
REGION % Membership* %
Association
PHILIPPINES 92,713 100.0 2,551,416 100.0
NCR 441 0.5 14,377 0.6
CAR 7,882 8.5 275,456 10.8
I 5,131 5.5 163,994 6.4
II 3,024 3.3 49,621 1.9
III 5,073 5.5 150,602 5.9
IV-A 4,851 5.2 129,826 5.1
IV-B 7,000 7.6 202,140 7.9
 Workers’
REGION % Membership* %
Association
V 5,804 6.3 149,809 5.9
VI 8,084 8.7 209,931 8.2
VII 3,367 3.6 108,464 4.3
VIII 11,551 12.5 376,361 14.8
IX 7,367 7.9 134,400 5.3
X 6,311 6.8 182,106 7.1
XI 8,647 9.3 223,068 8.7
XII 2,520 2.7 47,964 1.9
XIII 5,510 5.9 129,949 5.1
ARMM 150 0.2 3,348 0.1
Source of Data: Records transmitted by DOLE Regional Offices to the BLR as of December 2021
*Data from the Online Union Registration System (OURS) not yet included

As of December 2021, a total of 92,713 workers’ associations operating in one

region were registered nationwide with more than 2.5 million memberships. The
number of registered workers’ associations increased by 17.0% or 13,497 from 79,216
registrations in 2020.

Region VIII has the highest registered workers’ associations among regions in
the country. It has 11,551 registered workers’ associations, which cover 12.5% of the
total registrations. Moreover, Region XI has the second highest registration with 8,647
registered workers’ associations or about 9.3% of the total registrations.

In terms of membership, Region VIII also has the highest number of reported
membership with 376,361 members (14.8%), while the Cordillera Administrative
Region (CAR) recorded the second highest membership with 10.8% or 275,456
members.

Furthermore, there are 61 workers’ associations operating in more than one

region registered in the country, covering 134,440 memberships.

TREND IN UNIONIZATION RATE

Union membership in the private sector grew by almost 16.4% over the past 10
years from about 1.4 million in 2012 to more than 1.6 million in 2021 (see Figure 1).
Over the same period, the unionization rate peaked in 2012 at 8.5%, while the lowest
rate was recorded in 2019 at 7.3%. In 2021, the recorded unionization rate is at 7.4%.
 Figure 1. TREND IN THE UNIONIZATION RATE AND TOTAL NUMBER
OF UNION MEMBERS IN THE PRIVATE SECTOR, 2012-2021

a Unionization Rate = (Total No. of Union Members / Total No. of Employed Persons b) x 100%
Source of Data: BLR union registration data as of December 2021; b Philippine Statistics Authority (PSA) - December 2021 Labor Force Survey (Preliminary)

For the past ten years, public sector unionization rate recorded the highest in
2014 at 17.0%, while the lowest rate was recorded in 2021 at 11.4%. However, union
membership in the public sector increased by 12.3% from about 446,000 in 2012 to
about 501,000 in 2021 (see Figure 2).

Figure 2. TREND IN THE UNIONIZATION RATE AND TOTAL NUMBER

OF UNION MEMBERS IN THE PUBLIC SECTOR, 2012-2021

a
Unionization Rate = (Total No. of Union Members / Total No. of Employed Persons b) x 100%
Source of Data: BLR union registration data as of December 2021; b Philippine Statistics Authority (PSA) - December 2021 Labor Force Survey (Preliminary)
 Federations/National Unions

A federation or national union 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 (BLR) in accordance with Rule
III, Section 2-B of Department Order No. 40-03, as amended.5

A duly-registered federation or national union may directly create a local/chapter

by issuing a charter certificate indicating the establishment of the local/chapter. The
local/chapter shall acquire legal personality only for purposes of filing a petition for
certification election from the date it was issued a charter certificate. The local/chapter
shall be entitled to all other rights and privileges of a legitimate labor organization only
upon the submission of the required documents in addition to its charter certificate.6

Currently, there are 138 registered federations, wherein its locals/affiliates

comprise of 57.3% (10,338 out of 18,034) of the total registered unions and 49.6%
(800,382 out of 1,614,554) of the total union membership in the private sector.

Table 3 shows the ten (10) federations with the most number of recorded
locals/affiliates. These federations cover the 40.8% (4,215 out of 10,338) of the total
federated unions in the country.

Table 3. FEDERATIONS WITH THE MOST NUMBER OF LOCALS/AFFILIATES

AS OF DECEMBER 2021
Locals/
Federation Members
Affiliates
Associated Labor Unions (ALU) 958 79,558

Federation of Filipino Workers (FFW) 477 35,073

Solidarity of Unions in the Philippines for
454 27,799
Empowerment and Reforms (SUPER)
Lakas Manggagawa sa Pilipinas (LAKAS) 411 8,165
Philippine Trade and General Workers
358 93,720
Organization (PTGWO)
National Workers Brotherhood (NWB) 350 9,766

Filipino Samahang Manggagawa (FSM) 326 10,362

National Federation of Labor (NAFLU) 314 31,098

Association of Democratic Labor Organization
288 10,733
(ADLO)
United Filipino Seafarers (UFS) 279 4,739
Source of Data: BLR union registration data as of December 2021

The Associated Labor Unions (ALU), a federation registered since 1954, has
the most recorded locals/affiliates amongst registered federations with 958 recorded
locals/affiliates. The Federation of Filipino Workers (FFW), registered since 1956,
follows with 477 registered locals/affiliates.

5 Section 1 (ll) Rule I, ibid

6 Section 2 E Rule III, ibid
 Table 4 below shows the ten (10) federations with the most number of union
members. These federations cover 48.3% (386,971 out of 800,382) of the total
federated union membership.

Table 4. FEDERATIONS WITH THE MOST NUMBER OF UNION MEMBERS

AS OF DECEMBER 2021
Locals/
Federation Members
Affiliates
Philippine Trade and General Workers
93,720 358
Organization (PTGWO)
Associated Labor Unions (ALU) 79,558 958
Alyansa ng Manggagawa at Pilipinong
42,395 42
Organisado (AMAPO)
Federation of Filipino Workers (FFW) 35,073 477

National Federation of Labor Unions (NAFLU) 31,098 314

Solidarity of Unions in the Philippines for
27,799 454
Empowerment and Reforms (SUPER)
National Federation of Labor (NFL) 22,469 193

Obrero Pilipino 19,513 144

Association of Genuine Labor Organization
18,463 162
(AGLO)
National Union of Bank Employees (NUBE) 16,883 15
Source of Data: BLR union registration data as of December 2021

Among the registered federations, the Philippine Trade and General Workers
Organization (PTGWO), a federation registered since 1967, has the highest recorded
membership with 93,720 union members. On the other hand, ALU, with the most
number of locals/affiliates, recorded the second highest union membership with 79,558
memberships.

The registration of labor organizations is governed by the Labor Code, as

amended and the DOLE Department Order No. 40-03.

II. Collective Bargaining

Collective bargaining is a process where the parties agree to fix and administer
terms and conditions of employment which must not be below the minimum standards
fixed by law and set a mechanism for resolving their grievances. The interests of the
employees are commonly presented by representatives of a trade union and the
contract resulting from such negotiation is called Collective Bargaining Agreement
(CBA)7.

In the Philippines, collective bargaining can be done through single enterprise

level negotiations or through the creation of a mechanism by which different employers
and recognized or certified labor unions in their establishments bargain collectively
(multi-employer bargaining).

7 CBA refers to the contract between a legitimate labor union and the employer concerning wages, hours of work, and all other
terms and conditions of employment in a bargaining unit. (Section 1 (k) Rule I of Department Order No. 40-03, as amended)
 The registration and procedure of collective bargaining is guided by DOLE
Department Order No. 40-03, as amended.

As of December 2021, there are 835 existing CBAs in the country. Of these,
41.8% are in establishments operating in the NCR with 349 CBAs. Regions III, IV-A
and XI follows with 119, 112 and 83 existing CBAs, respectively (see Figure 3).

Figure 3. NUMBER OF EXISTING CBAS BY REGION AS OF DECEMBER 2021

Source of Data: Records transmitted by DOLE Regional Offices to the BLR as of December 2021

In terms of CBA coverage, a total of 189,980 workers are covered by the 835
existing CBAs. About 35.3% of these or 67,078 workers are in the NCR. The three
other regions with the high numbers of CBA workers’ coverage are Region IV-A with
32,317 workers covered; Region III with 25,428 workers covered; and Region XI with
21,610 workers covered (see Figure 4).

Figure 4. NUMBER OF CBA WORKERS COVERAGE BY REGION AS OF DECEMBER 2021

Source of Data: Records transmitted by DOLE Regional Offices to the BLR as of December 2021
III. Labor Management Council

Under Republic Act No. 6715 or “An Act to Extend Protection to Labor,
Strengthen the Constitutional Rights of Workers to Self-Organization, Collective
Bargaining and Peaceful Concerted Activities, Foster Industrial Peace and Harmony,
Promote the Preferential Use of Voluntary Modes of Settling Labor Disputes, and
Reorganize the National Labor Relations Commission, Amending for These Purposes
Certain Provisions of Presidential Decree No. 442, As Amended, Otherwise Known as
The Labor Code of the Philippines, Appropriating Funds Therefore and for Other
Purposes”, the operating mechanism of labor-management cooperation program in
organized establishments is called a Labor-Management Council (LMC). In
unorganized establishment, the mechanism is called Labor-Management Committees
(LMC).

The LMC aims to foster better relations between labor and management, to
supplement the grievance process when necessary and to supplement the CBA.

While there are no set rules, an LMC commonly has the following organizational
features:

 Composed of an adequate number of representatives from labor and management.

 Labor representatives shall be elected by at least the majority of the workers in the
establishment.
 Management is represented by top level officials, the personnel or industrial
relations manager, the production manager and other officers including
supervisors.
 There are two co-chairmen -- one from labor and one from management who serve
concurrently or on a rotating basis. A secretary is also appointed.
 A third party facilitator acceptable to labor and management may assist the
committee particularly in the early stages of its operation
 Sub-committees may be formed to address specific concerns.

The National Conciliation and Mediation Board, an attached agency of the

DOLE provides promotional and technical services for the LMC.

IV. Industrial Action (Strikes and Lockouts)

DOLE Department Order No. 40-03, as amended defines strike as any

temporary stoppage of work by the concerted action of employees as a result of a labor
or industrial dispute. Meanwhile, a lockout is referred to the temporary refusal of an
employer to furnish work as a result of a labor or industrial dispute.

The right to strike is a constitutional and legal right of the workers as the
employers have the inherent and statutory right to lockout, all within the context of labor
relations and collective bargaining. It is a means of last resort and presupposes that
the duty to bargain in good faith has been fulfilled and other voluntary modes
of dispute settlement have been tried and exhausted. The law recognizes two grounds
for the valid exercise of the right to strike or lockout, namely: unfair labor practice and
bargaining deadlock. In order to be valid, the notice of strike or lockout on grounds of
unfair labor practice, shall state the specific acts complained of. In case of bargaining
 deadlock, the notice must specify the unresolved issues and must show proof that the
parties have exhausted all efforts to resolve the deadlock.

The National Conciliation and Mediation Board (NCMB), an attached agency of

the DOLE, is the agency that mediates and arbitrates between labor and management
in case of a labor dispute concerning strikes and lockouts.

A relatively stable industrial peace was maintained with four (4) work stoppages
declared and 166 workers involved in 2021 wherein two (2) work stoppages resolved
with an average of four hundred eighty-six (486) days.

V. Single Entry Approach Program

On 05 October 2010, the DOLE issued Department Order No. 107 or the
“Guidelines on the Single Entry Approach prescribing a 30-Day Mandatory
Conciliation-Mediation Services for all Labor and Employment Cases”. The Guidelines
was guided by virtue of Section 3, Article XIII of the 1987 Constitution on the
preferential use of voluntary modes of dispute settlement, Article 211 of the Labor
Code, as amended, the Alternative Dispute Resolution (ADR) Act of 2004, and
Executive Order No. 523 instituting the use of ADR for the speedy resolution of all
disputes before the administrative bodies of the Executive Department. The Single
Entry Approach (SENA) is a reform program that answers President Benigno “Simeon”
Aquino’s directive to the DOLE to “reform labor arbitration and adjudication systems
by streamlining procedures, removing red tape, and at the same time, restore integrity
and fairness in the system”. The 30-day conciliation-mediation approach was a product
of tripartite consultation. In early July, the National Tripartite Industrial Peace Council
(TIPC) endorsed the reform by virtue of TIPC Resolution No. 3, Series of 2010.

Complaints that undergo SEnA are called Requests for Assistance (RFAs) and
are filed in all DOLE Regional Offices and concerned attached agencies such as the
NCMB and the National Labor Relations Commission (NLRC). The NCMB monitors
the implementation of SEnA.

On March 2013, Republic Act No. 10396: An Act Strengthening Conciliation-

Mediation as a Voluntary Mode of Dispute Settlement for All Labor Cases, Amending
for this Purpose Article 228 Of Presidential Decree No. 442, As Amended, Otherwise
Known as The "Labor Code of the Philippines" was signed. The law provides that all
issues arising from labor and employment shall be subject to mandatory conciliation-
mediation, proceedings which, may be pre-terminated by the parties involved with a
request for endorsement from the appropriate DOLE agency or office, or for voluntary
arbitration.

On 22 February 2016, the DOLE issued Department Order No. 151-16 or the
Implementing Rules and Regulations of Republic Act No. 10396 or “An Act
Strengthening Conciliation-Mediation as A Voluntary Mode of Dispute Settlement for
all Labor Cases, Amending for this Purpose Article 228 of the Presidential Decree No.
442, as amended, otherwise known as the Labor Code of the Philippines”. The IRR
provides for 30-day mandatory conciliation-mediation of all labor and employment
cases and specifically enumerates cases exempted therefrom. It requires the personal
appearance of parties at all times of the process and prohibits/discourages
 participation of lawyers, agents or representatives unless the latter submits a Special
Power of Attorney/Board Resolution/Secretary’s Certificate giving them authority to
represent the parties but only in certain circumstances provided by the Rules. In
addition, DOLE Offices and Attached Agencies handling labor and employment
disputes are mandated to establish number of SEADs depending on the volume of
RFAs in their respective regions. The procedure for the filing of RFA is laid down as
well as the appropriate actions of SEADOs upon receipt of the RFAs. The Rules also
introduced the new procedure of Co-conciliation-mediation which is to be resorted to
in cases where the RFA is filed in the SEAD most convenient to the requesting party
but outside of the region where the employer principally operates. Furthermore, it sets
the duties and responsibilities, norms and conduct of SEADOs and concerned offices
and defined the process flow from the filing of RFAs up to the termination of
conciliation-mediation.

Demand for SEnA services has been low. Requests for Assistance under the
SEnA Program of the Department have totaled to 3,603 in 2021. During the same
period, the national disposition rate was 96% or 3,470 RFAs were disposed. Likewise,
the national settlement rate was posted at 61% or 2,212 RFAs were settled. Since
SEnA prescribes a mandatory 30-day conciliation-mediation, the average number of
days to settle cases is eleven (11) days.

VI. Social Dialogue

Social dialogue is primarily indicated by how much workers are being organized,
how many collective bargaining agreements are concluded and how labor education
services are being extended. It also refers to a labor relations system which
encourages less adversarial modes of settling disputes and ensuring speedy
disposition of labor cases. In general, the Philippines has been recognized for its labor
relations environment that fosters strong tripartite mechanisms and processes for
social dialogue.

Tripartism, a program strategy employed to address the concerns of the social

partners – labor, employer and government sectors – through information sharing,
consultations, fora and dialogues, has been one of the mechanisms to promote social
dialogue. It has been a declared state policy as enunciated in the Labor Code.

In line with Department’s thrust to promote and strengthen social dialogue, the
Tripartite Industrial Peace Council (TIPC) and its various subcommittees are
consistently working toward setting workplace standards and protection of labor and
employers rights.

Legal Bases
 Executive Order No. 403 (s. 1990) Establishing the Tripartite Industrial Peace
Council
 Executive Order No. 25 (s. 1992) Amending E.O. No. 403 and Further
Strengthening the TIPC
 DOLE Department Order No. 8 (s. 1995) Guidelines in the Constitution and
Institutionalization of National Industry Councils, Regional TIPCs, and Regional
or Local ITCs under the National TIPC
 Executive Order No. 383 (s. 1996) Reorganizing and Strengthening the TIPC
  DOLE Department Order No. 14 (s. 1996)
 Executive Order No. 49 (s. 1998) Amending E.O. No. 383 for the Purpose of
Reconstituting and Expanding the Membership of the TIPC
 Executive Order No. 97 (s. 1999) Amending E.O. No. 49, Further Expanding
the Functions of the TIPC
 Department Order No. 111-11 (s. 2011) Guidelines in the Creation and
Institutionalization of Coordination among National, Regional and Local TIPCs
and/or ITCs
 Republic Act No. 10395: “An Act Strengthening Tripartism, Amending for the
purpose Article 275 of the Labor Code

Functions

1) To monitor the full implementation and compliance by concerned sectors with

provisions of all tripartite instruments, including international conventions,
codes of conduct, and social accords;
2) To participate in national, regional or industry-specific tripartite conferences
which the President or the Secretary of Labor and Employment may call from
time to time;
3) To review existing labor, economic and social policies and to evaluate local and
international developments affecting them;
4) To formulate for submission to the President or Congress, tripartite views,
recommendations and proposals on labor, economic and social concerns
including the presentation of tripartite positions on relevant bills pending in
Congress;
5) To advise the Secretary of Labor and Employment in the formulation or
implementation of policies and legislation affecting labor and employment;
6) To serve as a communication channel and a mechanism for undertaking join
programs among government, workers, employers and their organizations
toward enhancing labor-management relations; and
7) To adopt its own program of activities and rules, consistent with development
objectives.

TIPC Structure (Organizational)

 TIPC Structure (Functional)

TIPC FUNCTIONAL STRUCTURE (DO 111-11)

National Tripartite Advisory Tripartite Industrial Peace Tripartite Industrial Peace Council
Committee (NTAC) Council Monitoring Body

Tripartite Executive Committee Regular

Tripartite Executive Committee Monitoring Body

Automotive Assembly Construction Industry Sugar Tripartite Clothing and Textile Private Security
Education Industry
Industry Tripartite Tripartite Council Council Industry Tripartite Council Industry Tripartite
Tripartite Council
Council Council

Hotel and Restaurant Maritime Industry Overseas Land-based

Banking Industry
Consultative Tripartite Tripartite Council Tripartite Consultative
Tripartite Council Council
Board

Regional TIPCs/ITCs
(Regional/Provincial/City/ Monitoring Body
Municipal Levels)

Secretariat RTIPC Regular

PTIPC, CTIPC, MTIPC,
Industry Tripartite
Secretariat Monitoring Body
Council