Chapter 10 – Labor

Management Relations
Employee’s Right to Self
Organization
One of the basic rights of workers is the right to “self-organization” and
collective bargaining
What is Right to self-organization?
• The right of workers and employees to form, join or assist unions,
organizations or associations for purposes of collective bargaining and
negotiation and for mutual aid and protection
• refers to the right to engage in peaceful concerted activities or to participate in
policy and decision-making processes affecting their rights and benefits
What is Right to self-organization?
• Article 256 - Every employee, even temporary ones (except as provided in
Art. 254) is eligible for union membership beginning on the employee’s first
day of work
• The existence of employer-employee relationship is essential for the exercise
of the right of self-organization for purposes of collective bargaining.
Who may join a labor organization or
workers’ association?
• All employees employed in commercial, industrial and agricultural enterprises
and in religious, charitable, medical or educational institutions whether
operating for profit or not;
• Government employees in the civil service;
• Supervisory personnel;
• Security personnel; and
• Aliens with valid working permit
Forms of Union Security
Forms of Union Security
• Closed shop – The employer agrees to hire only union members
• Union shop – The employer may hire anyone regardless of union membership
status, but the employee must join the union within a set time period (such as
30 days) if the employee wants to retain his/her job in the organization
• Agency shop – The employer may hire anyone regardless of their union
membership status, and the employee need not join the union. However, all
non-union employees must pay a fee (known as the “agency fee”) to the union
to cover the costs of collective bargaining
Forms of Union Security
• Open shop – The employer may hire anyone regardless of their union
membership, status, and the employee need not join the union. Membership is
voluntary

• Dues checkoff – A contract between the employer and union where the
employer agrees to collect the dues, fees, assessments, and other monies from
union members and/or nonmembers directly from each worker’s paycheck and
transmit those funds to the union on a regular basis.
Requirements in
Registration of Labor
Organization
Article 239 of Labor Code
Requirements of Registration
• Fifty pesos (PHP 50.00) registration fee;
• The names of its officers, their addresses, the principal address of the labor
organization, the minutes of the organizational meetings and the list of the
workers who participated in such meetings
• In case the applicant is an independent union, the names of all its members
comprising at least twenty percent (20%) of all the employees in the bargaining
unit where it seeks to operate;
Requirements of Registration
• If the applicant union has been in existence for one or more years, copies of its
annual financial reports, and
• Four copies of the constitution and by-laws of the applicant union, minutes of
its adoption or ratification and the list of the members who participated in it.
Rights of a Legitimate
Labor Organization
Article 250 of the Labor Code
A legitimate labor organization shall have
the right:
• To act as the representative of its members for the purpose of collective
bargaining;
• To be certified as the exclusive representative of all the employees in an
appropriate collective bargaining unit for purposes of collective bargaining;
• To be furnished by the employer, upon written request, with its annual audited
financial statements, including the balance sheet and the profit and loss
statement, within thirty (30) calendar days from the date of receipt of request,
after the union has been duly recognized by the employer or certified as the
sole and exclusive bargaining representative of the employees in the bargaining
unit, or within sixty (60) calendar days before the expiration of the existing
collective
A legitimate labor organization shall have
the right:
• To own property, real or personal, for the use and benefit of the labor
organization and its members;
• To sue and be sued in its registered name; and
• To undertake all other activities designed to benefit the organization and its
members, including cooperative, housing welfare and other projects not
contrary to law.
A legitimate labor organization shall have
the right:
• Note: The right to represent employees in collective bargaining is true only for
the union of the majority members of the bargaining unit.
• Similarly, the right to be certified as exclusive bargaining representatives is
true only for the union that won in a certification or consent election.
Unfair Labor Practices of
Employers (Prohibited
by Law)
Article 258 of Labor Code
It shall be unlawful for an employer to commit any of
the following unfair labor practices:
• To interfere with, restrain or coerce employees in the exercise of their right to self-
organization
• To require as a condition of employment that a person or an employee shall not join a
labor organization or shall withdraw from one which he belongs;
• To contract out services or functions being performed by the union members when such
will interfere with, restrain or coerce employees in the exercise of their right to self-
organization;
It shall be unlawful for an employer to commit any of
the following unfair labor practices:
• To initiate, dominate, assist or otherwise interfere with the formation or
administration of any labor organization, including the giving of financial or other
support to it or its organizer or supporters;
• To discriminate in regard to wages, hours of work, and other terms and conditions
of employment in order to encourage or discourage membership in any labor
organization.
It shall be unlawful for an employer to commit any of
the following unfair labor practices:
• To dismiss, discharge, or otherwise prejudice or discriminate against an employee for
having given or being about to give testimony under this Code;
• To violate the duty to bargain collectively as prescribed by this Code;
• To pay negotiation or attorney’s fees to the union or its offices or agents as part of the
settlement of any issue in collective bargaining or any other disputes; or
• To violate a collective bargaining agreement.
U.L.P., A Matter of Facts and Evidence
• Any allegation of unfair labor practice has to be proved by facts and
evidence.
• Interference, Restraint, or Coercion –The law protects formation and
not only existence of union. For example:
 (1) dismissal of union members upon their refusal to give up their
membership, under the pretext of retrenchment due to reduced dollar
allocations,
 (2) dismissal of an old employee allegedly for inefficiency, on account
of her having joined a union and engaging in union activities.
U.L.P., A Matter of Facts and Evidence
• Totality of Conduct – Holds that the culpability of an employer’s
remarks is to be evaluated not only on the basis of their implications,
but against the background of collateral circumstances.
• Closure –the employees cannot be separated if there is no closure
because the “closed” department or company reappeared under a new
name.
 If the “new” or take-over company is engaging in the same business as
that of the closed company or department or is owned by the same
people, and the “closure” is calculated to defeat the workers’
organizational right, then, the closure may be declared a “subterfuge”
and the doctrine of successor employer will be applied.
U.L.P., A Matter of Facts and Evidence
• Run-away Shop – is defined as an industrial plant moved by its owners from
one location to another to escape union labor regulations, or state laws. It is
one wherein the employer moves its business to another location or it
temporarily closes its business for anti-union purposes.
• “Yellow dog” contract – is a promise exacted from workers or prospective
employees that they will not belong to, or form, a union during their
employment. Unless the promise is given the worker will not be hired, or if
already hired, will lose his job.
U.L.P., A Matter of Facts and Evidence
• Subcontracting – Contracting work out by an employer is an unfair labor practice when
it is motivated by a desire to prevent his employees from organizing and selecting a
collective bargaining representative.
U.L.P., A Matter of Facts and Evidence
• Company-domination of Union – Domination of a labor union usually manifests in the
following forms:
• (a) Initiation of the company union idea – This may further occur in three styles: (1)
outright formation by the employer or his representatives; (2) employee formation on
outright demand or influence by employer; and (3) managerially motivated formation
by employees
• (b) Financial support to the union – An employer commits unfair labor practice if he
defrays the union expenses or pays the fees of the attorney who drafted the union’s
constitution and by-laws.
U.L.P., A Matter of Facts and Evidence
• Company-domination of Union – Domination of a labor union usually manifests in the
following forms:
• (c) Employer encouragement and assistance – Immediately granting the union
exclusive recognition as a bargaining agent without determining whether the union
represents the majority of employees is an illegal form of assistance amounting to
unfair labor practice
• (d) Supervisory assistance – This takes the form of soliciting membership permitting
union activities during working time or coercing employees to join the union by threats
of dismissal or demotion.
U.L.P., A Matter of Facts and Evidence
• Discrimination – The law prohibits under this article is discrimination to encourage or
discourage membership in a labor organization.
• Valid Discrimination; Union Security Clause –The objective is to assure continued
existence of the union through enforced membership. In a sense, there is discrimination
when certain employees are obliged to join a union. But it is discrimination favoring
unionism; it is a valid kind of “discrimination”.
U.L.P., A Matter of Facts and Evidence
• Retaliation –The bare fact that he dismisses or otherwise discriminates against an
employee simply because the employee is testifying is enough to constitute a ULP act.
Contents of the Contract
Agreement
Contents of the Contract Agreement
• Recognition and Union Security
• Management Rights
• Grievance Procedures
• Arbitration of Grievance
• Disciplinary Procedure
• Compensation and Benefits Provisions
Contents of the Contract Agreement
• Hours of Work
• Layoff Procedure
• Health and Safety Provision
• Employee Security and Seniority Provisions
• Contract Expiration Date
Collective Bargaining
Process
Art. 260 – Procedure in Collective Bargaining
The following procedures shall be
observed in collective bargaining
• When a party desires to negotiate an agreement, it shall serve a written notice
upon the other party with a statement of its proposals. The other party shall
make a reply thereto not later than ten (10) days from receipt of such notice;
• Should differences arise on the basis of such notice and reply, either party may
request for a conference which shall begin not later than ten (10) calendar days
from the date of request;
The following procedures shall be
observed in collective bargaining
• If the dispute is not settled, the Board shall intervene upon request of either or both
parties or at its own initiative and immediately call the parties to conciliation meetings.
The Board shall have the power to issue subpoenas requiring the attendance of the
parties to such meetings.;
• During the conciliation proceedings in the Board, the parties are prohibited from doing
any act which may disrupt or impede the early settlement of the disputes; and
• The Board shall exert all efforts to settle disputes amicably and encourage the parties to
submit their case to a voluntary arbitrator.
Stages of the Collective Bargaining Process
Stage 1
Organization - Representational
Normal Course:
- Formation and registration of union
- Request and grant of voluntary recognition; or
- Petition for certification/consent election
- Determination of election constituency or collective bargaining unit (CBU)
- Holding of election
- Certification of exclusive bargaining representative (EBR)
Detour/Deviation:
- Election protest
- Appeal to Labor secretary
- Certiorari of Court of Appeals
- Strike because of union busting or other ULP by employer
- Third party intervention – conciliation-mediation or arbitration
Stages of the Collective Bargaining Process
Stage 2
Bargaining Proper
Normal Course:
- Bargaining preparations
- Presentation of proposals and counter-proposals
- Bargaining on specific mandatory or non-mandatory items
- Conclusion of negotiations; signing
- Ratification
- Registration of CBA
Detour/Deviation:
- Strike/lockout because of bargaining deadlock or ULP in bargaining
- Third-party intervention – conciliation-mediation or arbitration
Stages of the Collective Bargaining Process
Stage 3
Contract Administration
Normal Course:
- Implementations of CBA provisions
- CBA questions submitted to and resolved through grievance machinery or voluntary
arbitration
- Renegotiation on second or third year of non-representational provisions
- Freedom period on the fifth year; holding of election to resolve employee representation
Detour/Deviation:
- Strike because of gross violation of CBA economic provisions
- Third-party intervention – conciliation-mediation or arbitration
Bargaining
Impasses/Deadlock
Bargaining Impasses/Deadlock
• Takes place when neither side is willing to give in.
• Refers to the failure both the employer and the employees to arrive at the terms
and conditions of the latter’s employment despite previous efforts to arrive at a
compromise.
What happens if an employer and union reach a
deadlock in negotiations and cannot agree on all
the terms of the collective bargaining agreement?
• When the employer and union reach a deadlock in the negotiations, it is referred to as
impasse.
• When impasse is reached, the duty to negotiate is suspended and an employer is
permitted to unilaterally implement the terms of its final proposal.
• In other words, an employer may implement any changes to working conditions that it
had proposed to the union during negotiations without the union’s approval.
When there is an impasse, any of the
following may take place:
• Strikes – occur when employees refuse to work to make greater concessions at
the bargaining table
• Injunction – the employer obtaining a court order or restraining order to
prevent the workers from engaging in strikes in specified situations
• Lockout – the employer refuses to furnish work to their workers by getting
non-union members as substitutes for the plant’s continuous operation
When there is an impasse, any of the
following may take place:
• Picketing – when a union calls a strike, it usually establishes picket lines to
advertise the strike and discourage the employer from continuous operations. It
is the act of strikers where they patrol back and forth, carry placards or banners
with statements relating to the dispute, and distribute literatures at the entrance
of the company’s gate
• Third-party intervention – both parties have to agree to use any of the third
party interventions:
 Mediation and conciliation
 Fact finding
 Arbitration
Grievance Machinery and Voluntary
Arbitration
• The parties to a collective bargaining agreement shall establish machinery for
the adjustment and resolution of grievances arising from the interpretation or
implementation of their collective bargaining agreement and those arising from
the interpretation or enforcement of company personnel policies
• All grievances submitted to the grievance machinery which are not settled
within seven (7) calendar days from the date of its submission shall
automatically be referred to voluntary arbitration prescribed in the collective
bargaining agreement
Procedural but Mandatory Requisites
• There are seven (7) mandatory requisites, namely;
• First Requisite: Valid and factual ground
• Second requisite: Notice strike or notice of lockout
• Third requisite
• Fourth requisite: Strike vote or lockout vote
• Fifth requisite: Strike vote report or lockout vote report
• Sixth requisite: Cooling-off period
• Seventh requisite: 7 day waiting period of strike ban
First Requisite: Valid and factual ground
• A. Valid grounds:
 CBA deadlock
 Unfair labor practice (ULP)

• B. No other grounds are allowed except …

The following grounds, therefore, may not be properly cited as valid grounds for
a strike or lockout in view of the pertinent provisions of the Labor Code,
authorative labor issuances and jurisprudence
• Violation of collective bargaining agreements, except those which are gross in character
• Inter-union or intra-union disputes
• Issues already assumed by the DOLE Secretary or certified by him to the NLRC for
compulsory arbitration
• Issues already brought before the grievance machinery or voluntary arbitration
• Issues already brought before compulsory arbitration
• Issues involving labor standards
• Issues involving legislated wage orders
Second requisite: Notice strike or notice of
lockout
• When to file notice
 In case of ULP: 15 days from intended date of strike/lockout
 In case of CBA deadlock: 30 days from intended date thereof

• Parties who may file notice

 Certified union, in case of strike
 Employer, in case of lockout

• Where to file notice: National Conciliation and Mediation Board

or NCMB
Third requisite
• A notice must be served to the NCMB-DOLE at least twenty-four (24) hours
prior to the taking of the strike/lockout vote by secret balloting, informing said
office of the decision to conduct a strike vote/lockout vote and the date, place,
and time thereof
Third requisite
• This requisite is designed to:
• (a) inform the NCMB of the intent of the union to conduct a strike vote
• (b) Give the NCMB ample time to decide on whether or not there is a need to supervise
the conduct of the strike vote to prevent any facts of violence and/or irregularities
attendant thereto; and
• (c) Should the NCMB decide on its own initiative or upon the request of an interested
party including the employer, to supervise the strike vote, to give it ample time to
prepare for the deployment of the requisite personnel, including peace officers if need
be.
Fourth requisite: Strike vote or lockout vote
• (a) Majority approval of strike or lockout is required
• (b) Strike vote still necessary even in case of union-busting
Fifth requisite: Strike vote report or lockout
vote report
• (a) When to submit strike or lockout vote report: at least 7 days prior to strike
or lockout as the case may be
• (b) Effect of non-submission of strike vote to NCMB, DOLE: strike or lockout
is illegal
Sixth requisite: Cooling-off period
• General rule:
• (1) In case of CBA deadlock: 30 days
• (2) In case of ULP; 15 days
Seventh requisite: 7 day waiting period of
strike ban
• (a) Cooling-off period and waiting period, distinguished: Waiting period is
counted from the time of submission of strike vote report to NCMB; Cooling-
off period is counted from the filing of the Notice of Strike/Lockout with
NCMB
• (b) Purpose of the 7-day waiting period: To ensure that the strike vote was
indeed taken and that the majority of the members approved of it
• (c) Deficiency of even one day of the 7-day strike ban (or cooling-ff period)
makes the strike illegal
 The End
Thank you for listening!