Collective bargaining (p.

314)

-employees can only bargain collectively through a labor organization.

Labor Organization- association of Ees created for a collective bargaining or

dealing with Ers concerning terms and conditions of employment.

Kinds of union:

1) Local Union- labor organization operating at an enterprise level

2) National union/ Federation- LO with atleast 10 local chapters or affliates
3) Independent Union- acquired legal personality through independent
registration
- not ffliated with national union and federation
4) Local chapter- without independent registration; derives legal personality from
mother union/ federation
5) Affiliate- Independent union attached to a national union
6) Industrial union- LO composed of workers in a particular industry
7) Craft Union- LO composed of workers engaged in a particular trade or
occupation that requires skill and training
8) Company-type union- composed of Ees in the same company
9) Company Union- union assisted by Er
10 Trade union center- national unions organized for the purpose of giving
mutual aid and protection of its members

Qualified to form/join a LO? (p315)

- supervisors
- rank-and-file Ees

Rank-and-file Ees (Art 219, LC)

- those who are neither managerial or supervisory

Supervisory Ees
-recommend managerial actions (make and execute management policies, hiring,
transfer, suspension, recall, dismissal or discipline of Ees)
-requires independent judgement
-determined by Ees function, not title/position

Supervisory?
power to hire and fire is subject to evaluation? NO

Supervisors and RAF cannot lump together to form a single union (Art. 255, LC)
Reason: Difference in interest.
But can join same federation.

Ees of Non-Profit institutions

- can bargain collectively with Er (Art 253, LC)

Can the ff join a Labor Union?

Supervisory Ees YES

Rank-and-file Ees YES
Ees of Non-Profit institutions YES
\Security guards YES
Alien Ees YES
Homeworkers YES
Managerial Ees NO
Confidential Ees NO

Members of Cooperatives NO
Government Ees NO
GOCC organized under NO
Corporation Law (Labor
Code)
GOCC with original charter NO
Ambulant, Intermittent, NO
Itinerant, Rural workers and
Self-Employed workers
Conditions of Alien Ees joining a Labor Union (p.318)

• Must have valid alien permits

• Country which they are nationals grants the same privilege/ rights to Filipino
workers.

Who are Homeworkers? -those Ees who perform industrial work in their homes for
the benefit of persons who deliver them to the goods to be processed/fabricated
into a finished product.

Qualification to be Union member: first day of employment (Art 292, LC)

Foreign assistance to Trade Union activities- must first seek permission from
SOLE (Art 285, LC)

Trade union: (p.320)

-organization and administration of labor organizations

- negotiation and administration of CBA
- concerted actions and conventions, rallies, meetings
- participation and involvement in certification proceedings and union elections.

Prohibition of those not allowed to join a LO= not unconstitutional. They may
form an association instead.

Managerial Ees (p322) (Art 255, LC)

-those vested with powers/ prerogatives to lay down and execute management
policies and/or to hire, transfer, suspend, lay-off, recall, discharge, assign or
discipline employees.
-also determined by Ees function, not title/position; -designation should be
reconciled with actual job description.

Confidential Ees (p322)

-not all are disqualified; only those who have access to labor relations.
- those with access to confidential information are not disqualified from joining/
forming a labor union. however, under Doctrine of necessary implication, they are
neverthelesss disqualified since the disqualification accorded to managerial Ees
equally applies to confidential Ees.

Ees of Cooperatives- cannot join labor Organizations as the members are co-
owners of the cooperative.

2 GOCC-

1) GOCC with original charter (governed by CSC) (Art 291, LC)

2) organized under Corporation Law (Labor Code) - cannot form or join in
the organization of labor union (dati pwede)

Cases:
GSIS family bank vs Villanueva -2019 case
PNCC vs NLRC- June 20 2021

Art 254 of LC is already repealed

Exception: Right to seek better terms and conditions of employment (right to strike
and form of labor union not allowed anymore) are still applicable.

Exception to the Exception:

1) AFP
2) PNP
3) BFP
4) BJMP
5) High-level or managerial Ees
6) Ees whose duties are of highly confidential (p326)

Registration (p326)

-registration is with DOLE

-For independent unions: DOLE regional office
For Federations or National unions: BLR

Registration procedure:

1) Application + documents
2) Minutes of the meeting
3)List of Ees
4) Annual financial reports
5) Constitution, by-laws
6) Federations or national unions
7) supporting documents must be attested and certified under oath (Art 242, LC)
(this must be complied strictly)

Grounds for disapproval of application for registration (p329)

1) Fails to comply with the certification and attestation

2) submits falsified documents
3) Fails to submit the complete requirements within 30 days

Remedies:

1) Re-file the application with complete documents

2) Appeal Order of denial within 10 days

From DOLE regional office- appeal to BLR

From BLR- appeal to SOLE

Granting of complete application is a MINISTRAL DUTY.

Remedy: Mandamus. Not certiorari.

Incorporation (p331)

- not legitimate labor organization

- merely gives it juridical personality before regular courts
- does not entitle the Union to enjoy rights and privileges like LO
- it is the registration and issuance of registration of the LO that makes it legitimate
(Art 240, LC)
Can a union file a Petition for Certification Election while waiting for the issuance
of the Certificate of Registration? YES.
Can a union be a legitimate labor organization without undergoing the usual
process? YES. by affiliating with a duly registered federation or national union.

Local chapter- duly registered federations or national unions can create local
chapters (Art 241, LC)
"Duly registered" Federation/ National Union- complied with all registration
requirements under Art 240, 244 of the LC

Can a Trade union create a Local Chapter? NO.

When does a local chapter become a legitimate labor organization? (p.334)

When all the requirements have been submitted: (Art 241, LC)

*charter certificate
*names and address of the officers
*principal office of the chapter
*constitution and by-laws

Can the Local Chapter file a petition for certification Election before the
submission of the required documents? YES. If the federation/ national union has
already issued a Charter certificate. (Art 241, LC)

Can an independent union affiliate with a federation/ national union?

YES. as long as it complies with the ff requisites:

*general membership meeting must be called for the purpose.

*majority of members must approve such affiliation.
*BOD must execute a resolution for it.
*report of affiliation must be submitted to DOLE regional office.

Legal effect of affiliation: it becomes subject to the constitution and by-laws of the
federation
However, the independent union DOES NOT lost its legal personality.

Federation-Local union relationship (p336)

- same as principal-agent; Local Union is the principal

-exists even if the local union is not independently registered
Disaffiliation

GR: Local union can disaffiliate from its mother federation only during freedom
period (60-day period prior to the expiry of the CBA)
Exception: Disaffiliation may be done before freedom period in instances of shift
of allegiance.

Effects:
1) Severs relationship
2) Cuts right of the federation/ national union to exact dues from local union
3) Does not disturb CBA effects
4) Does not lose their personality

Cancellation of registration

- cannot be attacked collaterally

Grounds:

1) Misrepresentation, false statement or fraud

2) Violation of rights and conditions of union membership
3) Voluntary dissolution

GN: Effects if some members of the union do not belong to the bargaining unit?
Automatically removed (Art 256, LC)

Exception: If union itself is composed of mixed rank-and-file and supervisory Ees,

cancellation of registration may be warranted due to the organization being
defective.

Philippine Phosphate vs Torres Dunlopslazenger vs SOLE

Petition for certification election was Petition was dismissed as it was

granted as it was not opposed. Its opposed on the ground that the
validity was not challenged bargaining unit is not an appropriate
one.
Who may file for petition for cancellation of registration? (p344)

GN: Any party-in-interest

Exception:
1) Violation only affects a member; only the member can file the complaint
2) Violation affects the general membership; may be filed by at least 30% of all
union members (Art 250, LC)

Where to file:

1) DOLE regional office- of independent unions or local chapters

2) BLR- federations, National unions, Industry unions, trade union centers

Remedy: appeal within 10 days

1) BLR- if case was decided by DOLE Regional Director

2) SOLE- if decided by BLR
3) CA- BLR in its appellate jurisdiction

Voluntary Dissolution:

1) General membership meeting must be called for that specific purpose

2) 2/3 of the General membership must concur to dissolve the organization
3) Application to cancel registration

Change of name of a union, where to file:

1) DOLE regional office- in case of independent unions

2) BLR- Federations or National Unions

-must include amended constitution and by-laws

Merger/Consoldation of labor Organizations (p347)

1) DOLE regional office- in case of independent unions

2) BLR- Federations or National Unions

Notice should be supported by:

1) Minutes of convention
2) List of members
3) Amended constitution and by-laws

-effects: legal existence ceases

Rights of Legitimate Labor Organizations:

1) Certified as exclusive CB agent

2) Request for Er's financial statement
3) own real/personal property
4) Sue and be sued under its registered name
5) Undertake activities designed for benefit of the organization
6) Collect from its members membership fees (Art 292, LC)

Legitimate Labor Organization not Legitimate Labor Organization that

yet certified as bargaining agent was certified as bargaining agent
Can file suit only on behalf of its Can file suit only on behalf of its
members members as well as other Ees covered
by the bargaining unit.

Requirement to impose assessments and fees: (Art 250, LC)

1) General membership meeting must be called for the purpose

2) Majority of the members must adopt a written resolution approving levy of
special assessments
3) minutes of the meeting

- strict compliance is a MUST. (p351)

Limitations on imposition of fees and assessments: (Art 250, LC)

1) Must be reasonable
2) Collection should be done by persons duly authorized
3) Receipts must be issued

Check-off - means by which the Er deducts from Er's wages, union dues, special
assessments and extraordinary fees, which money the Er turns over to the union.
-not required to deduct agency fees from non-union members covered by the
bargaining unit (Art. 259, LC)
- not required to deduct reasonable fees to finance activities under the Labor Code
To be valid, they must be: (Art 250, LC)

1) Supported by written authorization signed by the Ee

2) Specific as to the amount

Withdrawal of check-off authorization- need not be done individually. Upon

withdrawal, obligation to check-off ceases.

Effect of failure to check-off - cannot be held liable for union dues and agency
fees.

Union dues Agency fees

assessments made by the union against
its members
requires individual written check-off
authorization.
assessments made by the union against
non-union members but covered by the
bargaining unit
Does not require such

Limitations on the use of union funds: (p359)

1) Can only be done by office/agent authorized to do so.

2)Used for purposes provided by the constitution or by-laws or written resolution
3) Receipt should be issued
4) Income/revenue should be recorded
5) Expenditures should be evidenced by receipt

Duty of the treasurer in accounting of union funds:

1) Once a year within 30 days after close of fiscal year

2) Whenever required by resolution of majority of union members
3) Upon vacating his officer

If union does not give report of its financial transactions, at least 20% of the union
members can petition before DOLE.
When can this right not be exercised? (Art 289, LC)
-during freedom period
-within 30 days before date of election of union officials

Prescription for accounting of union funds: Prescription is 3 years after annual

financial report (Art 250, LC)

Union Officers (p361)

Qualifications of a candidate for union office-

1) Must be employed in the company where union operates

2) Member in good standing
3) Free from conviction of a crime involving moral turpitude

Manner of election:

1) Directly
2) By secret ballot
3) Intervals of 5 years (If failed, at least 30% of the members may petition for
election)

Who are qualified to vote? Only UNION MEMBERS (Art 250, LC)

Regular Ees- payroll of the month preceding election

Seasonal Ees- payroll at or near the peak operations

Entitlement to compensation- (Art 250, LC)

1) By constitution or by-laws
2) Through a written resolution

Expulsion of Union officers- (Art 250, LC)

-Violation of rights and conditions of membership

- BLR or DOLE regional office can expel a union officer from Office
 The Collective Bargaining Unit (p364)

Definition: Group of Ees who share mutual wages, hrs of work, working
conditions and other subjects of collective bargaining

May be composed of:

1) Body of Ees in the Er unit

2) Any occupational grouping within the Er unit
3) Any geographical grouping within the Er unit

Factors to be considered:

1) Will of the Ees

2) Community of Ees interests
3) Similarity of Employment status
4) Prior Collective bargaining history

The Globe Doctrine

- main consideration in fixing bargaining unit is the express will or desire of the
Ees
-sanctions holding of series of elections for the specific purpose of permitting the
Ees in each of the several categories to select the CBU

Community of Interest Rule/Substantial mutual interest rule

-main consideration in fixing the Collective Bargaining Unit is the unity of Ees
interests.

Similarity of Employment Status Rule (p.368)

-main consideration in fixing the bargaining unit is the status of employment

-non-regular Ees are grouped into one category and regulars be grouped to another

Prior Collective Bargaining History

-also a factor in determining the appropriate bargaining unit

-may be disregarded where circumstances had been so altered that the past mutual
experience can no longer be considered as reliable. (in this situation, only
prevailing factors should control the determination of the bargaining unit)

One company-One union Policy

-general rule, unless circumstance otherwise require

Exceptions:

1) When supervisory Ees organize themselves into a bargaining unit separate and
distinct from bargaining unit of rank-and-file Ees
2) Where employer unit has to give way to other bargaining units like craft or plant
unit
3) When a certain class of Ees are excluded from the coverage of exisitng
bargaining unit

However, 2 or more corporations cannot be treated as a single bargaining unit:

1) Even if their businesses are related

2) Some Ees are manning/providing for auxiliary services to the other corporation
3) Even if physical plants, officers and facilities are situated in the same compound

The Collective Bargaining Agent (p372)

-legitimate labor organization certified by the DOLE to bargain with the Er for
better terms and conditions of employment on behalf of Ees.

How to become Certified Bargaining Agent:

1) SEBA certification
2) Certification Election

• SEBA certification
-only proper when there is no other legitimate labor organization within the
bargaining unit
- if more than one legitimate labor organization within the bargaining unit, tie
proper course of action is Certification of Election.
-file request before DOLE Regional Office with indication:
*Name and address of Labor Organization
*Name and address of the company where it operates
*Bargaining Unit

-once issued, the SEBA certification should be posted in 2 conspicuous places in

the establishment
-effects: Union becomes the certified collective bargaining agent of Ees
-filing of a petition for certification election is barred for a period of one year.

Certification Election (p375)

-process of determining, through a secret ballot, the sole and exclusive collective
bargaining agent of the Ees
-petitions are handled by Med-Arbiters
*Determines petition for certification election should be granted or not
*Resolve issues of Er-Ee relationship

GR: Standing of Er= mere bystander (should maintain a hands-off policy)

Exception:
1) Lack of Er-Ee relationship
2) Lack of legitimacy
3) Inappropriate bargaining unit
4) Lack of 25% written consent of the Ees covered by the bargaining unit
5) Election Year Bar and Certification Year Bar
6) Deadlock Bar and Contract Bar

Certification Proceedings (p378)

-starts upon filing of petition for Certification Election

-when to file:
* Unorganized establishments- anytime (Art 269,LC)
* Organized establishments- During freedom period only (Art. 268, LC) (petition must be verified,
supported by written consent of at least 25%- if short of 25%, it becomes discretionary on the part of the
Med-Arbiter)

-when barred:
*within 1 year from certification as bargaining agent
*within 1 year from holding of valid certification election
*Negotiations resulted in a deadlock
*There is a duly registered collective bargaining agreement
Who can file a petition for Certification Election:
1) Independent Union
2) Local chapter
3) National Union
4) BY an Er (Art 270, LC) - not necessary to support the petition with consent of
25% of the Ees within the bargaining unit.

Can petition of Certification Election be entertained in case of withdrawal of

consent:

1) Before the filing of petition- Med- arbiter may not order holding of Certification
Election
2) After filing of petition-Med-Arbiter can still order certification Election

Motion to Dismiss (p383)

1) Lack of Er-Ee relationship

2) Lack of legitimacy of Union
3) Lack of written consent of 25% of Ees
4) Not appropriate bargaining unit
5) Petition is barred as filed within 1 year from Certification as Collective
Bargaining Agent
6) Petition is barred by duly registered CBA
7)Failure to attach certificate the petition
8)Failure of petitioner to appear before the Med-Arbiter for 2 consecutive
conferences

Suspension of Certification Proceedings:

Pending unfair labor practice case against participant union for being a company
union? YES. It is a prejudicial question
Pendency of a petition for cancellation of registration filed against participant
union? NO.

Preliminary conference
If no motion to dismiss/ suspend is filed or if it is denied, a preliminary conference
will be conducted.

Consent Election

-Happens during the prelimianry conference

-where the unions will agree on the holding of certification election.
- Med-Arbiter no longer renders decision
- if cannot agree on Consent Election, the Med-Arbiter will resolve the merits of
the petition.

Appeal

In unorganized establishments:
Petition is granted- not appealable
Dismissed- appealable to the SOLE within 10 days from receipt

In organized establishments:
Denied/Granted- appealable to the SOLE within 10 days from receipt

Pre-Election conference (p385)

- occurs once Certification Election becomes Final and Executory
-will discuss mechanics of election, date and time, qualified voters, watchers,
polling place

Who are the qualified voters? Those Ees covered by the Bargaining Unit in service
for atleast 3 months. (whether Union members or not)
Includes:
*probationary Ees
*Striking Ees
*Members of religious sects
*Dismissed Ees with no final decision

Notice of Election:

-After preliminary conference, a notice of certification election will be issued

-cannot be waived
-contains:
*Date and time of election
*Names of all contending unions
*Decription of bargaining unit
*List of eligible and challenged voters
- should be posted atleast 10 days before date of election
-responsibility of Regional Director

Challenging of votes(p 387)

-challenge on votes that is not covered by the bargaining unit or not Ee of a
company
- should be done before ballot is deposited in the ballot box.

Process:
Election Officer shall: Place ballot in envelope - Seal envelope- Indicate ground
for challenge- sign sealed envelope- record challenges

Election protest

-only a party-in-interest can file protest

-must formalize protest with Med-Arbiter within 5 days after close of election
proceedings.

Re-Run election

-voting conducted when certification election results in a tie

-shall be conducted within 10 days fom posting of Notice

Run-Off Election (Art 268, LC)

-None of the 3 choices obtained a majority of the valid votes cast
Conditions:
*election should have atleast three choices
*None of the choices obtained a majority
*total votes for all contending unions are atleast 50% of number of votes cast
*no challenged ballots
- Only two of the labor unions receiving the highest number of votes can
participate in the run-off election.
- If the second hightest number of votes is a tie, the tie should first be broken
through a re-run election

Failure of election (p390)

-majority of the eligible voters did not vote.
-petitioner can file a motion for immediate holding of another election from the
declaration of failure of election

Valid election

-majority of the eligible voters were able to vote (Art 268, LC)
- bars any union from filing a petition for certificate election within one year from
holding of the election (Election- Year Bar Rule)

Certification as Collective Bargaining Agent (p392)

-No protest was filed within 5-day period from close of the election proceedings

Collective Bargaining Negotiations (p394)

-must start within one year from Certification by submitting proposals to the Er
(Art 261, LC)

Deadlock- a situation in a collective bargaining negotiations wherein parties have

not reached a mutually acceptable settlement.
-no Petition for Certification Election can be filed or entertained when CBA
negotiations that resulted in deadlock.

Collective bargaining agreement- agreement of the parties

-signed CBA must be posted for 5 days in atleast 2 conspicious places in the
establishment.
-shall be deemed ratified if majority of Ees covered by the bargaining unit approve
it.
-term is 5 years; however can renegotiate the agreement not later than 3 years after
its execution (Art 265, LC)

Registration: Art 237, LC

Should be submitted to the DOLE
Effect of registration: p396

- will bar filing of a petition for certification election by any union

Can only file for petition for certification election during freedom period- 60 day
period prior to the expiry of 5-year term of CBA
- only a duly registered CBA can bar a petition for certification election
- an unregistered CBA is valid and binding between the parties

Substitutionary Doctrine- Ees cannot revoke the CBA by changing their agent

Renegotiated CBA (p401) -

If parties were able to come to an agreement within 6 mos from expiry of the 3rd
year of the CBA- effectivity shall retroact to the day following the xpiry of the 3rd
year. (Art 265,LC)
If the agreement was arrived at after 6 months from expiry of the third year of the
CBA - Parties are given discretion to fix the effectivity
If 6 months have elapsed and negotiations resulted in a deadlock and the matter
was submitted for arbitration- effectivity shall be when the arbitrator's decision
becomes final

Hold-Over Principle- terms and conditions of exisiting agreement subsists while a

new agreement is yet to be reached (Art 264, LC)

Freedom period (Art 264, LC)

-the 60-day period prior to the expiration of the CBA
-time where a union member can resign from union
-local union can disaffliate from mother federation
-majority status of incumbent collective bargaining agent can be challenged
-parties can seek termination/ modification of exisitng CBA
-may start to negotiate for a new CBA

CBA suspension (p406)

-must be approved by majority of Ees

Summary of CBA provess-

Organizing a Union -> Registration of Union with DOLE Regional Office ->
Certification as CB Agent -> submission of proposals and counter-proposals ->
Negotiations -> signing of CBA -> posting of CBA -> Ratification