CHAPTER III

RIGHTS OF LEGITIMATE LABOR ORGANIZATIONS

ART. 242. RIGHTS OF LEGITIMATE LABOR ORGANIZATIONS
RIGHTS OF A LEGITIMATE LABOR ORGANIZATION:
1.
2.
3.
4.
5.
6.
7.

Undertake activities for benefit of members

Sue and be sued
Exclusive representative of all employees
Represent union members
Furnished by employers of audited financial statements
Own properties
Exempted from taxes

EFFECT OF CANCELLATION OF REGISTRATION IN THE COURSE OF PROCEEDINGS;

-

Where a labor union is a party in a proceeding and later it loses its registration permit in the course or
during the pendency of the case, such union may continue still as a party without need of substitution
of parties, subject however to the understanding that whatever decision may be rendered therein will
only be binding upon those members of the union who have not signified their desire to withdraw from
the case before its trial and decision on the merits.

TITLE V
COVERAGE
ART. 243. COVERAGE AND EMPLOYEES RIGHT TO SELF ORGANIZATION

GOVERNMENT
OWNED OR
CONTROLLED
CORPORATIONS
WITH A CHARTER

GOVERNMENT
OWNED OR
CONTROLLED
CORPORATIONS
WITHOUT
CHARTER

1. Employees cannot
stage strikes since
they are governed
by the Civil
Service Law. They
are enjoined by
Civil Service
Memorandum
Circular No. 6,
under pain of
administrative
sanctions, from
staging strikes,
demonstrations,
mass leaves, walk-

1.The GOCC is
created under
Corporation Code,
then employees are
covered by the
Labor Code.
Therefore the
employees have
the same rights as
those as employees
of private
corporations, one of
which is the right to
stage strikes.

outs and other

concerted
activities.
2.Corporations with
original
charters
cannot bargain with
the
government
concerning
the
terms
and
conditions of their
employment.
However, they can
negotiate with the
government
on
those terms and
conditions
of
employment which
are not fixed by law.
Thus, they have a
limited bargaining
rights.

2. The GOCC is
created
under
Corporation
Code,
being governed by the
Labor Code, they can
bargain
with
the
government
concerning the terms
and conditions of their
employment.
Thus, they have an
unlimited bargaining
rights.

1. Can only form,

join or assist labor
organization for
purposes
not
contrary to law.

1. Can form, join or

Assisi
labor
organization for
purposes of CBA,
etc.

THE FOLLOWING ARE CONSIDERED NEGOTIABLE

CHARTER:
1.
2.
3.
4.
5.
6.
7.
8.
9.

IN GOCC WITH ORIGINAL

schedule of vacation and other leaves

work assignment of pregnant women
personnel growth and development
communication system lateral and vertical
provision for protection and safely
provision for facilities for handicapped personnel
provision for first-aid medical services for married women
annual medical/physical examination
recreational, social, athletic and cultural activities and facilities (Rules implementing WO 180)

THE FOLLOWING ARE CONSIDERED NOT NEGOTIABLE :

1. Those which require appropriation of
funds, such as :
a. increase in salary emoluments and other allowance not presently provided for by law
b. facilities requiring capital outlays
c. car plan

d.
e.
f.
g.
h.

provident fund
special hospitalization, medical and dental services
rice/sugar/other subsidies
travel expenses
increase in retirement benefits

2. Those that involve the exercise of management prerogatives, such as :

-

appointments
promotion
assignments/details
reclassification/upgrading of position
revision of compensation structure
penalties imposed as a result of disciplinary actions
selections of personnel to attain seminar, trainings. Study grants
distribution of work load
external communication linkages

Government employees and employees of government-owned and controlled corporations with original
charters may bargain, however, such bargaining power is limited.

RATIONALE : GOCCs INCORPORATED UNDER THE CORP. CODE ALLOWED TO

ORGANIZE:
1. they are not involved in public service
2. terms of employment are not fixed by law
3. they are governed by the provisions of the Labor Code not by the Civil Service Law

EMPLOYEES COVERED BY THE RIGHT TO SELF- ORGANIZATION:

1.
2.
3.
-

Commercial
Industrial
Agricultural enterprises, including:
charitable
religious
education or
medical institution

EMPLOYEES WITH LIMITED RIGHT TO SELF- ORGANIZATION:

1.
2.
3.
4.
5.

Self- employed
Without definite employers
Ambulant
Intermittent and Itinerant
Rural worker

they have the right to self-organization but only for their mutual aid and protection.

EMPLOYEES WHO ARE NOT GRANTED THE RIGHT TO SELF-ORGANIZATION:

1. Members of the Armed Forces of the Philippines, including police officers, policemen, firemen and jail
guards;
2. High-level employees
- whose functions are normally considered as policy-making or managerial
- whose duties are of a highly confidential or highly technical in nature ( EO 180, sections 3-4)

3.
4.
5.
6.

Government employees occupying high positions

Employees of international organizations with immunities
Confidential employees
Cooperative members who are also employees

Foreigners validly working in the Philippines can form labor organizations, provided, the same
right to form, join or assist in the formation of labor unions is also given to Filipinos in their country of
origin. This embodies the principle of reciprocity.

Extent of the Right to Self-Organization

a. To form, join and assist labor organizations
for the purpose of collective bargaining through representatives of their own choosing and
b. To engage in lawful concerted activitiesfor the same purpose
for their mutual aid and protection

ART 245. INELIGIBILITY OF MANAGERIAL EMPLOYEES TO JOIN ANY LABOR

ORGANIZATION; RIGHT OF SUPERVISORY EMPLOYEES.
Reason for ineligibility in the collective bargaining process, managerial employees are supposed to be
on the side of the employer, to act as its representatives, and to see to it that its interests are well protected.
The employer is not assured of such protection if these employees themselves are union members.

ART. 246.
THE RIGHT TO SELF-ORGANIZATION SHALL NOT BE ABRIDGED MEANS:
It shall be unlawful for any person to:
restrain,
coerce,
discriminate against, or
unduly interfere
with employees and workers in their exercise of the right to self-organization. (Art. 246)
Any act intended to weaken or defeat the right is regarded by law as an offense, which is technically
called unfair labor practice.