KMU, CBA Deadlock,

and NDA
AEV Legal Management Services
 Kilusan Mayo Uno (KMU)

• KMU is a federation established way back in May 1, 1980

• Present membership: 115,000 members, composed of

industrial, service, and agricultural workers

• KMU has chapters in major regions in Luzon, Visayas, and

Mindanao

• It aims to protect and promote workers’ right to

employment, wage, humane working conditions, and their
right to form unions, bargain collectively and strike; and
heighten workers’ political awareness and class
consciousness through massive education, organizing and
mobilization in and out of the workplace

http://kilusangmayouno.org/about/#.WtBjFYhubIU
 How is a federation formed?

• A federation is a group of legitimate labor unions organized

for collective bargaining or for dealing with employers
concerning the terms and conditions of employment for their
member unions
• It must be registered with the Bureau of Labor Relations
(BLR) by filing an application with the BLR or the Regional
Office where it will operate
• The application must be accompanied by a resolution of
affiliation of at least ten (10) legitimate labor organizations
that are duly certified or recognized bargaining agents of
establishments
 How can a union join a federation?

• A report of affiliation with a federation must be filed with the

BLR Regional Office that issued the union’s certificate of
registration
• The affiliation must be approved by the union’s board of
directors
• The federation must issue a certificate of affiliation in favor
of the union
• The employer must be notified in writing if the affiliating
union is the incumbent bargaining agent
• The affiliation report will be acted upon within ten (10) days
from its filing date
 Possible implications of CBA deadlock

• The union may engage in peaceful picketing or declare a

strike in cases of bargaining deadlocks
• All persons engaged in picketing are prohibited from
committing any act of violence, coercion or intimidation or
obstructing the free ingress to or egress from the employer's
premises for lawful purposes, or obstructing public
thoroughfares
• No person shall obstruct, impede or interfere with, by force,
violence, coercion, threats or intimidation, any peaceful
picketing by workers or shall aid or abet such obstruction or
interference
 Requirements of a lawful strike

• A decision to declare a strike must be approved by a majority

of the total union membership (strike vote) obtained by
secret ballot in meetings
• The union must furnish the National Conciliation and
Mediation Board (NCMB) with copies of the notice of
meetings within twenty-four (24) hours before such
meetings and the results of the voting at least seven (7) days
before the intended strike or lockout
• The union can declare a strike by filing a notice of strike with
the regional branch of the National Conciliation and
Mediation Board (NCMB) at least thirty (30) days before the
intended date of the strike
 Requirements of a lawful strike

• The employer must be served with a copy of the notice of

strike

• The notice of strike must state the unresolved issues in the

bargaining negotiations, accompanied by the union’s written
proposals and the employer’s counter-proposals

• The union may strike if the deadlock remains unsettled after

the lapse of the 30-day period from the filing of the notice of
strike (cooling-off period)
 Options when the union declares a strike

1. Upon receipt of a notice of strike, file a petition with the DOLE

Secretary to assume jurisdiction over the dispute or certify it
to the NLRC for compulsory arbitration
• If the DOLE Secretary grants the petition, the
impending strike will be enjoined and all striking
employees, if any, will be directed to return to work
• A draft of the petition is already prepared
2. Settle with the union
3. Submit an improved offer with the NCMB, and request that it
conduct a secret balloting wherein the union members will
vote to either accept or reject the improve offer
• If a majority of the union members accepts the offer,
striking workers will be directed to immediately return
to work
 Non-Disclosure Agreement (NDA)

• VECO intends to send a Notice to Explain (NTE) to its employees

who either refused or failed to sign a NDA
• The NTE will be based on the following:
1. Code of Discipline
3.8 Every employee shall perform the regular assigned duties
or specific instructions or/and official orders related to his duty
issued by his immediate supervisor or Department Head.
4.5 Every employee shall accept and acknowledge written
memos, letters, etc. issued by his immediate superior or
Department Head.
2. Labor Code
Willful disobedience to lawful orders
 Non-Disclosure Agreement (NDA)

3. Data Privacy Act of 2012

SEC. 20. Security of Personal Information. x x x

xxx
(e) The employees, agents or representatives of a
personal information controller who are involved in the
processing of personal information shall operate and
hold personal information under strict confidentiality if
the personal information are not intended for public
disclosure. This obligation shall continue even after
leaving the public service, transfer to another position or
upon termination of employment or contractual
relations.
 Non-Disclosure Agreement (NDA)

3. Implementing Rules and Regulations (IRR) of the Data

Privacy Act of 2012
Section 25. Data Privacy and Security. x x x
xxx
d. Management of Human Resources. Any natural or
juridical person or other entity involved in the processing of
personal data shall be responsible for selecting and supervising
its employees, agents, or representatives, particularly those
who will have access to personal data.
The said employees, agents, or representatives shall operate
and hold personal data under strict confidentiality if the
personal data are not intended for public disclosure. This
obligation shall continue even after leaving the public service,
transferring to another position, or upon terminating their
employment or contractual relations. x x x
 Non-Disclosure Agreement (NDA)

• VECO must be cautious in sending NDAs since the employees

involved are union members
• It may be construed as discriminating union members

RECOMMENDATION
• Issue a memorandum, requiring all employees to sign a NDA
within a specific period as mandated by the Data Privacy Act
of 2012 and its IRR
• Send a NTE to employees who refuse or fail to sign the NDA
after the lapse of the specified period