LABOR 2 DISINI NOTES (PART 2: LABOR RELATIONS LAW) 1


LABOR RELATIONS LAW

WHAT DOES THE ABOVEMENTIONED CONSTITUTIONAL PROVISIONS

PRELIMINARIES: CONSTITUTIONAL AND STATUTORY BASIS
SPELL OUT?
The State shall:
CONSTITUTIONAL BASIS 1. Afford full protection to labor
a. Local and overseas
Article 2, Section 18. The State affirms labor as a primary social b. Organized and unorganized
economic force. It shall protect the rights of workers and promote their 2. Promote full employment and equality of employment
welfare. opportunities for all
3. It shall guarantee the rights of ALL workers to the following:
Article 3, Section 8. The right of the people, including those employed in a. Labor Relations
the public and private sectors, to form unions, associations, or societies i. Self-organization
for purposes not contrary to law shall not be abridged. ii. Collective bargaining and negotiations
iii. Peaceful concerted activities, including the right
Article 13, Section 3. The State shall afford full protection to labor, local to strike in accordance with law
and overseas, organized and unorganized, and promote full employment b. Labor Standards
and equality of employment opportunities for all. i. Security of tenure
ii. Humane conditions of work
It shall guarantee the rights of all workers to self-organization, collective iii. Living wage
bargaining and negotiations, and peaceful concerted activities, including c. Others
the right to strike in accordance with law. They shall be entitled to security i. Participation in policy and decision making
of tenure, humane conditions of work, and a living wage. They shall also processes affecting their rights and benefits as
participate in policy and decision-making processes affecting their rights may be provided by law
and benefits as may be provided by law. 4. Promote the principle of shared responsibility between workers
and employers
The State shall promote the principle of shared responsibility between 5. Promote the preferential use of voluntary modes in settling
workers and employers and the preferential use of voluntary modes in disputes, including conciliation, and shall enforce their mutual
settling disputes, including conciliation, and shall enforce their mutual compliance therewith to foster industrial peace
compliance therewith to foster industrial peace. 6. Regulate the relations between workers and employers,
recognizing the right of labor to its just share in the fruits of
The State shall regulate the relations between workers and employers, production and the right of enterprises to reasonable returns of
recognizing the right of labor to its just share in the fruits of production investments, and to expansion and growth
and the right of enterprises to reasonable returns to investments, and to
expansion and growth. STATUTORY BASIS

ART. 211. Declaration of Policy. - A. It is the policy of the State:

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LABOR 2 DISINI NOTES (PART 2: LABOR RELATIONS)
(a) To promote and emphasize the primacy of free collective bargaining
and negotiations, including voluntary arbitration, mediation and
conciliation, as modes of settling labor or industrial disputes;
(b) To promote free trade unionism as an instrument for the enhancement
of democracy and the promotion of social justice and development;
(c) To foster the free and voluntary organization of a strong and united
labor movement;
(d) To promote the enlightenment of workers concerning their rights and
obligations as union members and as employees;
(e) To provide an adequate administrative machinery for the expeditious
settlement of labor or industrial disputes;
(f) To ensure a stable but dynamic and just industrial peace; and
(g) To ensure the participation of workers in decision and policy-making
processes affecting their rights, duties and welfare.
B. To encourage a truly democratic method of regulating the relations
between the employers and employees by means of agreements freely
entered into through collective bargaining, no court or administrative
agency or official shall have the power to set or fix wages, rates of pay,
hours of work or other terms and conditions of employment, except as
otherwise provided under this Code. (As amended by Section 3, Republic
Act No. 6715, March 21, 1989).
ART. 212. Definitions. - (a) "Commission" means the National Labor
Relations Commission or any of its divisions, as the case may be, as
provided under this Code.
(b) "Bureau" means the Bureau of Labor Relations and/or the Labor
Relations Divisions in the regional offices established under Presidential
Decree No. 1, in the Department of Labor.
(c) "Board" means the National Conciliation and Mediation Board
established under Executive Order No. 126.
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(d) "Council" means the Tripartite Voluntary Arbitration Advisory Council
established under Executive Order No. 126, as amended.
(e) "Employer" includes any person acting in the interest of an employer,
directly or indirectly. The term shall not include any labor organization or
any of its officers or agents except when acting as employer.
(f) "Employee" includes any person in the employ of an employer. The term
shall not be limited to the employees of a particular employer, unless the
Code so explicitly states. It shall include any individual whose work has
ceased as a result of or in connection with any current labor dispute or
because of any unfair labor practice if he has not obtained any other
substantially equivalent and regular employment.
(g) "Labor organization" means any union or association of employees
which exists in whole or in part for the purpose of collective bargaining or
of dealing with employers concerning terms and conditions of
employment.
(h) "Legitimate labor organization" means any labor organization duly
registered with the Department of Labor and Employment, and includes
any branch or local thereof.
(i) "Company union" means any labor organization whose formation,
function or administration has been assisted by any act defined as unfair
labor practice by this Code.
(j) "Bargaining representative" means a legitimate labor organization
whether or not employed by the employer.
(k) "Unfair labor practice" means any unfair labor practice as expressly
defined by the Code.
(l) "Labor dispute" includes any controversy or matter concerning terms
and conditions of employment or the association or representation of
persons in negotiating, fixing, maintaining, changing or arranging the
terms and conditions of employment, regardless of whether the disputants
stand in the proximate relation of employer and employee.
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LABOR 2 DISINI NOTES (PART 2: LABOR RELATIONS)
(m) "Managerial employee" is one who is vested with the powers or
prerogatives to lay down and execute management policies and/or to hire,
transfer, suspend, lay-off, recall, discharge, assign or discipline employees.
Supervisory employees are those who, in the interest of the employer,
effectively recommend such managerial actions if the exercise of such
authority is not merely routinary or clerical in nature but requires the use
of independent judgment. All employees not falling within any of the above
definitions are considered rank-and-file employees for purposes of this
Book.
(n) "Voluntary Arbitrator" means any person accredited by the Board as
such or any person named or designated in the Collective Bargaining
Agreement by the parties to act as their Voluntary Arbitrator, or one
chosen with or without the assistance of the National Conciliation and
Mediation Board, pursuant to a selection procedure agreed upon in the
Collective Bargaining Agreement, or any official that may be authorized by
the Secretary of Labor and Employment to act as Voluntary Arbitrator
upon the written request and agreement of the parties to a labor dispute.
(o) "Strike" means any temporary stoppage of work by the concerted action
of employees as a result of an industrial or labor dispute.
(p) "Lockout" means any temporary refusal of an employer to furnish work
as a result of an industrial or labor dispute.
(q) "Internal union dispute" includes all disputes or grievances arising from
any violation of or disagreement over any provision of the constitution and
by laws of a union, including any violation of the rights and conditions of
union membership provided for in this Code.
(r) "Strike-breaker" means any person who obstructs, impedes, or
interferes with by force, violence, coercion, threats, or intimidation any
peaceful picketing affecting wages, hours or conditions of work or in the
exercise of the right of self-organization or collective bargaining.
(s) "Strike area" means the establishment, warehouses, depots, plants or
offices, including the sites or premises used as runaway shops, of the
employer struck against, as well as the immediate vicinity actually used by
picketing strikers in moving to and fro before all points of entrance to and
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exit from said establishment. (As amended by Section 4, Republic Act No.
6715, March 21, 1989).
PRESENT LABOR RELATIONS POLICY
METHODS OF DISPUTE SETTLEMENT, ARTICLE 211 (a)(b)
• To promote and emphasize the primacy of free collective
bargaining and negotiations, including voluntary arbitration,
mediation and conciliation, as modes of settling labor or industrial
disputes
• To promote free trade unionism as an instrument for the
enhancement of democracy and the promotion of social justice
and development
RATIONALE FOR VOLUNTARY DISPUTE SETTLEMENT
• Labor relations are characterized by its inter-party nature. It is
due to this inter-party nature that voluntary settlement is
preferred.
• Labor relations encourage a truly democratic method of regulating
the relations between the employers and employees by means of
agreements freely entered into through collective bargaining
• Free agreement among the parties is the general rule while
government intervention is the exception.
• Note: there is symmetry in the law with respect to Article 211—
A(a) with respect to B(b)
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some of the employees involved. The Secretary then assumed

jurisdiction over the dispute and ordered the employees to return
Article 211 (A) Article 211 (B) to work. The hotel refused to accept the employees and moved for
reconsideration. Thereafter, the Secretary issued an order,
ordering that the employees be reinstated in the payroll without
• Goal of both (A) and (B) is the • Exception to the rule: covers having to actually returning to work.
attainment of industrial peace situation which are normal as
• State policies: promote and well as those which are not
normal HELD:
emphasize the primacy of free
collective bargaining and • The law is likewise realistic, The State encourages an environment wherein employers and employees
negotiations which recognizes that industrial themselves must deal with their problems in a manner that mutually suits
• Voluntary settlement|interparty peace through voluntary means best. A voluntary, instead of compulsory, mode of dispute is the general
character of labor relations is not always true rule.
• Real and lasting peace in the • Rationale: there is public
industry not attainable through interest involved when workers In the present case, there is no showing that the facts called for payroll
compulsion (attained through and employers are reinstatement as an alternative remedy. A strained relationship between
human experience) irreconcilable, as such, the the striking employees and management is no reason for payroll
government should intervene reinstatement in lieu of actual reinstatement. Petitioner correctly points
• This provision likewise holds out that labor disputes naturally involve strained relations between labor
the same state policy for the and management, and that in most strikes, the relations between the
furtherance of industrial peace strikers and the non-strikers will similarly be tense. Bitter labor disputes
but follows a different
methodology always leave an aftermath of strong emotions and unpleasant situations.
• Nonetheless, an escape clause Nevertheless, the government must still perform its function and apply the
is provided wherein parties may law, especially if, as in this case, national interest is involved.
resort back to voluntary means
Compared to the cited case of UST v. NLRC—
There, the Secretary assumed jurisdiction over the labor dispute between
striking teachers and the university. He ordered the striking teachers to
MANILA DIAMOND HOTEL EMPLOYEES UNION V. CA return to work and the university to accept them under the same terms
447 SCRA 97 (2004) and conditions. However, in a subsequent order, the NLRC provided payroll
• The petitioner filed for certification election so that it may be reinstatement for the striking teachers as an alternative remedy to actual
declared as the sole bargaining representative of the employees reinstatement. It is noted however that the UST ruling was made in the
but its petition was denied. It then wrote to the management, light of one very important fact: the teachers could not be given back their
asking the latter to engage with it in collective bargaining academic assignments since the order of the Secretary for them to return
negotiations. The human resources department notified them that to work was given in the middle of the first semester of the academic year.
it couldn’t be done because of the results of the certification The NLRC was, therefore, faced with a situation where the striking teachers
election. The petitioner replied that they are not giving a notice to were entitled to a return to work order, but the university could not
bargain but merely asking the hotel to bargain with them to the immediately reinstate them since it would be impracticable and
exclusion of the other rank-and-file employees. The union then detrimental to the students to change teachers at that point in time.
took a strike vote and despite deliberations with the NCMB, staged
a strike. The hotel alleging that the same was illegal, it dismissed TRADE UNIONISM, ARTICLE 211 (b)(c)

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(1) To promote free trade unionism as an instrument for the
enhancement of democracy and the promotion of social justice
and development
(2) To foster the free and voluntary organization of a strong and
united labor movement;
WORKER ENLIGHTENMENT, ARTICLES 211 (d), 277 (a), 241 (p)
(1) To promote the enlightenment of workers concerning their rights
and obligations as union members and as employees;
(2) All unions are authorized to collect reasonable membership fees,
union dues, assessments and fines and other contributions for
labor education and research, mutual death and hospitalization
benefits, welfare fund, strike fund and credit and cooperative
undertakings.
(3) It shall be the duty of any labor organization and its officers to
inform its members on the provisions of its constitution and by-
laws, collective bargaining agreement, the prevailing labor
relations system and all their rights and obligations under existing
labor laws.
For this purpose, registered labor organizations may assess
reasonable dues to finance labor relations seminars and other
labor education activities.
Any violation of the above rights and conditions of membership
shall be a ground for cancellation of union registration or
expulsion of officers from office, whichever is appropriate. At least
thirty percent (30%) of the members of a union or any member or
members specially concerned may report such violation to the
Bureau. The Bureau shall have the power to hear and decide any
reported violation to mete the appropriate penalty.
Criminal and civil liabilities arising from violations of above rights
and conditions of membership shall continue to be under the
jurisdiction of ordinary courts.
VICTORIA V. INCIONG (1988)
• Victoria was employed in Far East Broadcasting Company. He
later together with other employees organized an employee’s
union. They sought recognition from the company but the latter
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maintained that they cannot as they are not under the scope of the
Industrial Peace Act. Despite conciliation efforts and advise by
the NCMB that they cannot be recognized as the broadcasting
company is not included in the Industrial Peace Act, they staged a
strike. This prompted the company to file for damages and
preliminary injunction. Petitioner was subsequently dismissed
from the company and he alleged that he was illegally dismissed
since prior clearance is needed from the Secretary before the
dismissal of employees or cessation of business.
HELD:
Technically speaking, no clearance was obtained by private respondent
from the then Secretary of Labor, the last step towards full compliance
with the requirements of law on the matter of dismissal of employees.
However, the rationale behind the clearance requirement was fully met.
The Secretary of Labor was apprised of private respondent's intention to
terminate the services of petitioner. This in effect is an application for
clearance to dismiss petitioner from employment. The affirmance of the
restrictive condition in the dispositive portion of the labor arbiter's decision
in NLRC Case Nos. 0021 and 0285 by the Secretary of Labor and the
Office of the President of the Philippines, signifies a grant of authority to
dismiss petitioner in case the strike is declared illegal by the Court of First
Instance of Bulacan. Consequently and as correctly stated by the Solicitor
General, private respondent acted in good faith when it terminated the
employment of petitioner upon a declaration of illegality of the strike by
the Court of First Instance of Bulacan. Moreover, the then Secretary of
Labor manifested his conformity to the dismissal, not once, but twice. In
this regard, the mandatory rule on clearance need not be applied.
The strike staged by the union in 1972 was a futile move. The law then
enforced, Republic Act 875 specifically excluded respondent company
from its coverage. Even if the parties had gone to court to compel
recognition, no positive relief could have been obtained since the same was
not sanctioned by law. Because of this, there was no necessity on the part
of private respondent to show specific acts of petitioner during the strike to
justify his dismissal.
This is a matter of responsibility and of answerability. Petitioner as a union
leader, must see to it that the policies and activities of the union in the
conduct of labor relations are within the precepts of law and any deviation
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LABOR 2 DISINI NOTES (PART 2: LABOR RELATIONS)
from the legal boundaries shall be imputable to the leader. He bears the
responsibility of guiding the union along the path of law and to cause the
union to demand what is not legally demandable, would foment anarchy
which is a prelude to chaos.
Petitioner should have known and it was his duty to impart this imputed
knowledge to the members of the union that employees and laborers in
non- profit organizations are not covered by the provisions of the Industrial
Peace Act and the Court of Industrial Relations [in the case at bar, the
Court of First Instance] has no jurisdiction to entertain petitions of labor
unions or organizations of said non-profit organizations for certification as
the exclusive bargaining representatives of said employees and laborers.
MACHINERY DISPUTE SETTLEMENT, ARTICLE 211 (e)
(a) To provide an adequate administrative machinery for the
expeditious settlement of labor or industrial disputes;
ST. MARTIN’S FUNERAL HOMES V. NLRC
295 SCRA 494
• Aricayos filed against petitioner a case for illegal dismissal. He
alleged that he was employed by the company as an operations
manager but he wasn’t included in the payroll nor was there any
contract of employment. The company on the other hand, alleged
that he was merely accommodated by the previous owner of the
company as he was in dire need of financial assistance but when
records were checked, irregularities in accounts were discovered
and Aricayos was duly removed for misappropriating funds. The
labor arbiter ruled that there wasn’t any employer-employee
relationship. The NLRC on appeal remanded to the arbiter the
case for further proceedings. Having its motion for
reconsideration denied, Aricayos filed a petition for certiorari to
the SC.
HELD:
All references in the amended Section 9 of B.P. No. 129 to supposed
appeals from the NLRC to the Supreme Court are interpreted and hereby
declared to mean and refer to petitions for certiorari under Rule 65.
Consequently, all such petitions should hence forth be initially filed in the
Court of Appeals in strict observance of the doctrine on the hierarchy of
courts as the appropriate forum for the relief desired.
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DELTAVENTURES V. CABATO
327 SCRA 521
• Respondent-employees filed a case of illegal dismissal against
their employer. The labor arbiter ruled in their favor and ruled for
the payment of backwages and reinstatement. The appeal being
denied, the employees sought the issuance of a writ of execution
to satisfy the judgment. The labor arbiter duly issued one but
seeing that there are not enough assets to satisfy claims, a levy
was made on one of the real properties. Before the auction sale
could happen, petitioner files a third-party complaint as it was
allegedly the owner of the property. The auction sale was
thereafter suspended. The petitioner then files a complaint with
the RTC, making the same allegations in its third-party claim,
praying as well for injunction and damages. The employees
sought the dismissal of the civil case and the court then ruled in
their favor, ruling that the petitioner cannot maintain the two
claims both at the same time.
HELD:
Petitioner failed to realize that by filing its third-party claim with the
deputy sheriff, it submitted itself to the jurisdiction of the Commission
acting through the Labor Arbiter. It failed to perceive the fact that what it
is really controverting is the decision of the Labor arbiter and not the act of
the deputy sheriff in executing said order issued as a consequence of said
decision rendered.
Jurisdiction once acquired is not lost upon the instance of the parties but
continues until the case is terminated. 23 Whatever irregularities attended
the issuance and execution of the alias writ of execution should be referred
to the same administrative tribunal which rendered the decision. 24 This is
because any court which issued a writ of execution has the inherent power,
for the advancement of justice, to correct errors of its ministerial officers
and to control its own processes.
The broad powers granted to the Labor Arbiter and to the National Labor
Relations Commission by Articles 217, 218 and 224 of the Labor Code can
only be interpreted as vesting in them jurisdiction over incidents arising
from, in connection with or relating to labor disputes, as the controversy
under consideration, to the exclusion of the regular courts.
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Having established that jurisdiction over the case rests with the
Commission, we find no grave abuse of discretion on the part of
respondent Judge Cabato in denying petitioner's motion for the issuance of
an injunction against the execution of the decision of the National Labor
Relations Commission.
Moreover, it must be noted that the Labor Code in Article 254 explicitly
prohibits issuance of a temporary or permanent injunction or restraining
order in any case involving or growing out of labor disputes by any court or
other entity (except as otherwise provided in Arts. 218 and 264). As
correctly observed by court a quo, the main issue and the subject of the
amended complaint for injunction are questions interwoven with the
execution of the Commission's decision. No doubt the aforecited
prohibition in Article 254 is applicable.
Petitioner should have filed its third-party claim before the Labor Arbiter,
from whom the writ of execution originated, before instituting said civil
case. The NLRC's Manual on Execution of Judgment, issued pursuant to
Article 218 of the Labor Code, provides the mechanism for a third-party
claimant to assert his claim over a property levied upon by the sheriff
pursuant to an order or decision of the Commission or of the Labor Arbiter.
The power of the Labor Arbiter to issue a writ of execution carries with it
the power to inquire into the correctness of the execution of his decision
and to consider whatever supervening events might transpire during such
execution.
INDUSTRIAL PEACE, ARTICLE 211 (f), 273
• To ensure a stable but dynamic and just industrial peace
• Note that industrial peace remains to be aspirational
PARTICIPATION IN POLICY AND DECISION MAKING, in addition to the
constitutional provision is ARTICLE 211 (g)
• To ensure the participation of workers in decision and policy-
making processes affecting their rights, duties and welfare.
WAGE-FIXING, ARTICLE 211(B), 99, 124
• To encourage a truly democratic method of regulating the
relations between the employers and employees by means of
agreements freely entered into through collective bargaining, no
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court or administrative agency or official shall have the power to
set or fix wages, rates of pay, hours of work or other terms and
conditions of employment, except as otherwise provided under
this Code.
• The minimum wage rates for agricultural and non-agricultural
employees and workers in each and every region of the country
shall be those prescribed by the Regional Tripartite Wages and
Productivity Boards.
• The regional minimum wages to be established by the Regional
Board shall be as nearly adequate as is economically feasible to
maintain the minimum standards of living necessary for the
health, efficiency and general well-being of the employees within
the framework of the national economic and social development
program. In the determination of such regional minimum wages,
the Regional Board shall, among other relevant factors, consider
the following:
o The demand for living wages;
o Wage adjustment vis-à-vis the consumer price index;
o The cost of living and changes or increases therein;
o The needs of workers and their families;
o The need to induce industries to invest in the countryside;
o Improvements in standards of living;
o The prevailing wage levels;
o Fair return of the capital invested and capacity to pay of
employers;
o Effects on employment generation and family income; and
o The equitable distribution of income and wealth along the
imperatives of economic and social development.
LABOR INJUNCTION, ARTICLES 254, 263 (g), 218
• General rule: Injunction prohibited. - No temporary or permanent
injunction or restraining order in any case involving or growing out
of labor disputes shall be issued by any court or other entity,
except as otherwise provided in Articles 218 and 264 of this Code.
• Exceptions to the rule
o When, in his opinion, there exists a labor dispute causing or
likely to cause a strike or lockout in an industry indispensable
to the national interest, the Secretary of Labor and
Employment may assume jurisdiction over the dispute
and decide it or certify the same to the Commission for
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compulsory arbitration. Such assumption or certification
shall have the effect of automatically enjoining the
intended or impending strike or lockout as specified in the
assumption or certification order. If one has already taken
place at the time of assumption or certification, all
striking or locked out employees shall immediately return-
to-work and the employer shall immediately resume
operations and readmit all workers under the same terms
and conditions prevailing before the strike or lockout. The
Secretary of Labor and Employment or the Commission
may seek the assistance of law enforcement agencies to
ensure compliance with this provision as well as with such
orders as he may issue to enforce the same.
o To enjoin or restrain any actual or threatened commission of
any or all prohibited or unlawful acts or to require the
performance of a particular act in any labor dispute which, if
not restrained or performed forthwith, may cause grave or
irreparable damage to any party or render ineffectual any
decision in favor of such party: Provided, That no temporary
or permanent injunction in any case involving or growing
out of a labor dispute as defined in this Code shall be
issued except after hearing the testimony of witnesses,
with opportunity for cross-examination, in support of the
allegations of a complaint made under oath, and
testimony in opposition thereto, if offered, and only after a
finding of fact by the Commission, to the effect:
POINTERS FOR LIMITED INJUNCTION
(a) If there is a labor dispute
(b) By the NLRC
(c) Following certain requirements
RATIONALE FOR LIMITED INJUNCTION
• It is because that injunction shouldn’t be use to circumvent labor
law
• Experience shows that when injunction is issued, the scale is tilted
more in favor of the party for whom the injunction was issued
TRIPARTISM, ARTICLE 275
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• Tripartism in labor relations is hereby declared a State policy.
Towards this end, workers and employers shall, as far as
practicable, be represented in decision and policy-making bodies
of the government.
• The Secretary of Labor and Employment or his duly authorized
representatives may, from time to time, call a national, regional,
or industrial tripartite conference of representatives of
government, workers and employers for the consideration and
adoption of voluntary codes of principles designed to promote
industrial peace based on social justice or to align labor
movement relations with established priorities in economic and
social development. In calling such conference, the Secretary of
Labor and Employment may consult with accredited
representatives of workers and employers.
RATIONALE BEHIND TRIPARTISM AND WORKER PARTICIPATION
• The belief that a party who participates in the culmination of a
policy has greater assurance of effectiveness of the policy and its
success
• However, if we look at the law, a fence was built around the law—
in matters that affects of rights and welfare—but can the whole
gamut of rights and welfare be catalogued?
• This fence prompts some questions like—can an employee veto
any policy drafted by the company or management? In PAL v.
NLRC, it was held that the right exists but the employee doesn’t
have the veto power.
• It just means that the right is qualified and is not absolute. The
right only exists for those affecting their rights and welfare.
Nonetheless, they don’t have the power to veto.
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Government Employers
Workers/
employees
RIGHT TO SELF-ORGANIZATION
CONSTITUTIONAL AND STATUTORY BASIS OF RIGHT
Article 3, Section 8. The right of the people, including those employed in
the public and private sectors, to form unions, associations, or societies
for purposes not contrary to law shall not be abridged.
Article 13, Section 3.
xxx It shall guarantee the rights of all workers to self-organization,
collective bargaining and negotiations, and peaceful concerted activities,
including the right to strike in accordance with law. xxx
ART. 243. Coverage and employees’ right to self-organization. - All
persons employed in commercial, industrial and agricultural enterprises
and in religious, charitable, medical, or educational institutions, whether
operating for profit or not, shall have the right to self-organization and to
form, join, or assist labor organizations of their own choosing for purposes
of collective bargaining. Ambulant, intermittent and itinerant workers, self-
employed people, rural workers and those without any definite employers
may form labor organizations for their mutual aid and protection. (As
amended by Batas Pambansa Bilang 70, May 1, 1980).
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FLOW PROVIDED FOR IN ARTICLE 243 WITH RESPECT TO THE
CONSTITUTIONAL RIGHT OF SELF-ORGANIZATION
(a) General statement of the right enshrined in the Constitution
(b) How it will operate
(c) Restrictions as to its applicability
CATEGORIES OF EMPLOYEES FOUND IN THE PROVISION OF THE
LABOR CODE
(1) Managerial employees
(2) Supervisory employees
(3) Rank-and-file employees
DOES THE PROVISION OF THE LABOR CODE VIOLATE THE
CONSTITUTIONAL PROVISIONS? IS THE CLASSIFICATION VALID?
• No, it is not a violation
• In answering this, on the onset, begin with the assumption that the
restrictions are valid
• The law, in interpreting the law, saw the purpose of the
Constitution as well as it recognizes the different needs and
interests of supervisory and rank-and-file employees respectively—
there might be conflict between the interests of the two classes of
employees
o Fast forwardthere is conflict in areas of discipline as
well as economic interests and loyalty
ART. 244. Right of employees in the public service. - Employees of
government corporations established under the Corporation Code shall
have the right to organize and to bargain collectively with their respective
employers. All other employees in the civil service shall have the right to
form associations for purposes not contrary to law. (As amended by
Executive Order No. 111, December 24, 1986).
ART. 245. Ineligibility of managerial employees to join any labor
organization; right of supervisory employees. - Managerial employees
are not eligible to join, assist or form any labor organization. Supervisory
employees shall not be eligible for membership in a labor organization of
the rank-and-file employees but may join, assist or form separate labor
organizations of their own. (As amended by Section 18, Republic Act No.
6715, March 21, 1989).
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ART. 245-A. Effect of inclusion as members of employees outside
the bargaining unit. The inclusion as union members of employees
outside the bargaining unit shall not be a ground for the cancellation of the
registration of the union. Said employees are automatically deemed
removed from the list of membership of said union.
ART. 246. Non-abridgment of right to self-organization. - 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. Such right shall include the right to form, join, or assist labor
organizations for the purpose of collective bargaining through
representatives of their own choosing and to engage in lawful concerted
activities for the same purpose for their mutual aid and protection, subject
to the provisions of Article 264 of this Code. (As amended by Batas
Pambansa Bilang 70, May 1, 1980).
UST FACULTY UNION V. BITONIO
318 SCRA 186
• Private respondents were officers of the USTFU. The recognized
union had a CBA with the school. The secretary-general on a
relevant date announced that there would be a general assembly
for the next election of union officers. The petitioners appealed
the same with the med-arbiter, alleging that the same was not in
accordance with the union’s constitution and by-laws. The med-
arbiter issued a temporary restraining order, even so, the general
assembly still proceeded as scheduled. Members and non-
members alike attended the same and petitioners were elected as
officers. The private respondents then prayed for the nullification
of elections, being a violation of the temporary restraining order.
They likewise filed a motion to order petitioners to vacate the
union office. The med-arbiter ruled in their favor and this was
affirmed by the director.
HELD:
Self-organization is a fundamental right guaranteed by the Philippine
Constitution and the Labor Code. Employees have the right to form, join or
assist labor organizations for the purpose of collective bargaining or for
their mutual aid and protection. Whether employed for a definite period or
MA. ANGELA AGUINALDO
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not, any employee shall be considered as such, beginning on his first day
of service, for purposes of membership in a labor union.
Corollary to this right is the prerogative not to join, affiliate with or assist a
labor union. Therefore, to become a union member, an employee
must, as a rule, not only signify the intent to become one, but also
take some positive steps to realize that intent. The procedure for
union membership is usually embodied in the union's constitution and
bylaws. An employee who becomes a union member acquires the rights
and the concomitant obligations that go with this new status and becomes
bound by the union's rules and regulations.
The constitutional right to self-organization is better understood in the
context of ILO Convention No. 87 (Freedom of Association and Protection
of Right to Organize), to which the Philippines is signatory. Article 3 of the
Convention provides that workers' organizations shall have the right to
draw up their constitution and rules and to elect their representatives in
full freedom, free from any interference from public authorities. The
freedom conferred by the provision is expansive; the responsibility
imposed on union members to respect the constitution and rules they
themselves draw up equally so. The point to be stressed is that the
union's CBL is the fundamental law that governs the relationship
between and among the members of the union. It is where the
rights, duties and obligations, powers, functions and authority of
the officers as well as the members are defined. It is the organic
law that determines the validity of acts done by any officer or
member of the union. Without respect for the CBL, a union as a
democratic institution degenerates into nothing more than a group
of individuals governed by mob rule.
NATIONAL UNION OF BANK EMPLOYEES V. MINISTER OF LABOR
110 SCRA 274
• Exclusion of certain rank-and-file employees from the collective
bargaining unit. Allegedly, this is in violation of the right to self-
organization.
HELD:
The question therefore of excluding certain rank and file employees for
being allegedly confidential, managerial or technical does not simply
involve a definition of the bargaining unit but rather raises the fundamental
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issue of coverage under or eligibility for the exercise of the workers' rights
to self-organization and collective bargaining. On this score, the law on
coverage and exclusion on the matter should by now be very clear. Article
244 of the Labor Code states that all persons employed in commercial,
industrial and agricultural enterprises, including religious, charitable,
medical or educational institutions operating for profit shall have the right
to self-organization and to form, join, or assist labor organizations for
purposes of collective bargaining. Articles 245 and 246 (ibid) provide that
security guards and managerial employees are not eligible to form, assist
or join any labor organization. As defined by the Code, a managerial
employee is one who is vested with powers or prerogatives to lay down and
execute management policies and/or to hire, transfer, suspend, lay-off,
recall, discharge, assign or discipline employees, or to effectively
recommend such managerial actions. All employees not falling within this
definition are considered rank and file employees for purposes of self-
organization and collective bargaining.
It is in the light of the foregoing provisions of law that the challenged
order, in so far as it excludes all managerial and supervisory employees,
secretaries of bank officials, credit investigators, telephone operators, loan
security custodians, employees in the accounting, auditing, legal, trust and
personnel departments respectively, should be modified for being either
superfluous, discriminatory or simply contrary to law. The express
exclusion of managerial employees in the Order is superfluous for the
same is already provided for by law and is presumed when the bargaining
unit was defined as comprising all the regular rank and file employees of
the bank. It is also anomalous and discriminatory when it excluded
employees of the personnel department but included specific individuals
like Manuel Simibcay Primi Zamora and Carmelita Sy. Exclusion as
managerial employee is not based on the personality of the
occupant but rather on the nature and function of the position. The
exclusion of the other positions is likewise contrary to law, there being no
clear showing that they are managerial employees. The mere fact of being
a supervisor or a confidential employee does not exclude him from
coverage. He must strictly come within the category of a managerial
employee as defined by the Code. The Constitution assures to all workers
such rights to self-organization and collective bargaining. Exclusions, being
the exception and being in derogation of such constitutional mandate,
should be construed in strictissimi juris.
MA. ANGELA AGUINALDO
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Furthermore, to uphold the order of exclusion would be to allow the
emasculation of the workers' right to self-organization and to collective
bargaining, statutory rights which have received constitutional recognition
when they were enshrined in the 1973 Constitution. Indeed, the further
rulings that 'other non-confidential employees included in the bank's list of
proposed exclusion be allowed to vote but the votes should be segregated
as challenged and that in case of doubt as to whether or not the position
held by an employee is confidential in nature, the employee should be
allowed to vote but his vote should be segregated as challenged' both
complete the said order's self-nullifying effects.
At the most and indeed as a policy, exclusion of confidential employees
from the bargaining unit is a matter for negotiation and agreement of the
parties. Thus, the parties may agree in the CBA, to exclude certain highly
confidential positions from the bargaining unit. Absent such agreement,
coverage must be observed. In any event, any negotiation and agreement
can come after the representation issue is resolved and this is just the
situation in the instant case.
Universal Declaration of Human Rights, article 2. Everyone is entitled
to all the rights and freedoms set forth in this Declaration, without
distinction of any kind, such as race, colour, sex, language, religion,
political or other opinion, national or social origin, property, birth or other
status. Furthermore, no distinction shall be made on the basis of the
political, jurisdictional or international status of the country or territory to
which a person belongs, whether it be independent, trust, non-self-
governing or under any other limitation of sovereignty.
Article 23. (1) Everyone has the right to work, to free choice of
employment, to just and favourable conditions of work and to protection
against unemployment. (2) Everyone, without any discrimination, has the
right to equal pay for equal work. (3) Everyone who works has the right to
just and favourable remuneration ensuring for himself and his family an
existence worthy of human dignity, and supplemented, if necessary, by
other means of social protection. (4) Everyone has the right to form and to
join trade unions for the protection of his interests.
International Covenant on Economic, Social and Cultural Rights,
article 2. 1. Each State Party to the present Covenant undertakes to take
steps, individually and through international assistance and co-operation,
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especially economic and technical, to the maximum of its available
resources, with a view to achieving progressively the full realization of the
rights recognized in the present Covenant by all appropriate means,
including particularly the adoption of legislative measures.
2. The States Parties to the present Covenant undertake to guarantee that
the rights enunciated in the present Covenant will be exercised without
discrimination of any kind as to race, colour, sex, language, religion,
political or other opinion, national or social origin, property, birth or other
status.
3. Developing countries, with due regard to human rights and their
national economy, may determine to what extent they would guarantee the
economic rights recognized in the present Covenant to non-nationals.
Article 8.
1. The States Parties to the present Covenant undertake to ensure:
(a) The right of everyone to form trade unions and join the trade union of
his choice, subject only to the rules of the organization concerned, for the
promotion and protection of his economic and social interests. No
restrictions may be placed on the exercise of this right other than those
prescribed by law and which are necessary in a democratic society in the
interests of national security or public order or for the protection of the
rights and freedoms of others;
(b) The right of trade unions to establish national federations or
confederations and the right of the latter to form or join international
trade-union organizations;
(c) The right of trade unions to function freely subject to no limitations
other than those prescribed by law and which are necessary in a
democratic society in the interests of national security or public order or
for the protection of the rights and freedoms of others;
(d) The right to strike, provided that it is exercised in conformity with the
laws of the particular country.
2. This article shall not prevent the imposition of lawful restrictions on the
exercise of these rights by members of the armed forces or of the police or
of the administration of the State.
3. Nothing in this article shall authorize States Parties to the International
Labour Organisation Convention of 1948 concerning Freedom of
MA. ANGELA AGUINALDO
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Association and Protection of the Right to Organize to take legislative
measures which would prejudice, or apply the law in such a manner as
would prejudice, the guarantees provided for in that Convention.
International Covenant on Civil and Political Rights, article 22.
1. Everyone shall have the right to freedom of association with others,
including the right to form and join trade unions for the protection of his
interests.
2. No restrictions may be placed on the exercise of this right other than
those which are prescribed by law and which are necessary in a
democratic society in the interests of national security or public safety,
public order (ordre public), the protection of public health or morals or the
protection of the rights and freedoms of others. This article shall not
prevent the imposition of lawful restrictions on members of the armed
forces and of the police in their exercise of this right.
3. Nothing in this article shall authorize States Parties to the International
Labour Organisation Convention of 1948 concerning Freedom of
Association and Protection of the Right to Organize to take legislative
measures which would prejudice, or to apply the law in such a manner as
to prejudice, the guarantees provided for in that Convention.
ILO Convention No. 87: Freedom of Association and Protection of
the Right to Organization.
PART I. FREEDOM OF ASSOCIATION
Article 1
Each Member of the International Labour Organisation for which this
Convention is in force undertakes to give effect to the following provisions.
Article 2
Workers and employers, without distinction whatsoever, shall have the
right to establish and, subject only to the rules of the organisation
concerned, to join organisations of their own choosing without previous
authorisation.
Article 3
1. Workers' and employers' organisations shall have the right to draw up
their constitutions and rules, to elect their representatives in full freedom,
to organise their administration and activities and to formulate their
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programmes.
2. The public authorities shall refrain from any interference which would
restrict this right or impede the lawful exercise thereof.
Article 4
Workers' and employers' organisations shall not be liable to be dissolved or
suspended by administrative authority.
Article 5
Workers' and employers' organisations shall have the right to establish and
join federations and confederations and any such organisation, federation
or confederation shall have the right to affiliate with international
organisations of workers and employers.
Article 6
The provisions of Articles 2, 3 and 4 hereof apply to federations and
confederations of workers' and employers' organisations.
Article 7
The acquisition of legal personality by workers' and employers'
organisations, federations and confederations shall not be made subject to
conditions of such a character as to restrict the application of the
provisions of Articles 2, 3 and 4 hereof.
Article 8
1. In exercising the rights provided for in this Convention workers and
employers and their respective organisations, like other persons or
organised collectivities, shall respect the law of the land.
2. The law of the land shall not be such as to impair, nor shall it be so
applied as to impair, the guarantees provided for in this Convention.
Article 9
1. The extent to which the guarantees provided for in this Convention shall
apply to the armed forces and the police shall be determined by national
laws or regulations.
2. In accordance with the principle set forth in paragraph 8 of Article 19 of
the Constitution of the International Labour Organisation the ratification of
MA. ANGELA AGUINALDO
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this Convention by any Member shall not be deemed to affect any existing
law, award, custom or agreement in virtue of which members of the armed
forces or the police enjoy any right guaranteed by this Convention.
Article 10
In this Convention the term organisation means any organisation of
workers or of employers for furthering and defending the interests of
workers or of employers.
PART II. PROTECTION OF THE RIGHT TO ORGANISE
Article 11
Each Member of the International Labour Organisation for which this
Convention is in force undertakes to take all necessary and appropriate
measures to ensure that workers and employers may exercise freely the
right to organise.
PART III. MISCELLANEOUS PROVISIONS
Article 12
1.In respect of the territories referred to in Article 35 of the Constitution of
the International Labour Organisation as amended by the Constitution of
the International Labour Organisation Instrument of Amendment 1946,
other than the territories referred to in paragraphs 4 and 5 of the said
article as so amended, each Member of the Organisation which ratifies this
Convention shall communicate to the Director-General of the International
Labour Office with or as soon as possible after its ratification a declaration
stating:
a) the territories in respect of which it undertakes that the provisions of the
Convention shall be applied without modification;
b) the territories in respect of which it undertakes that the provisions of the
Convention shall be applied subject to modifications, together with details
of the said modifications;
c) the territories in respect of which the Convention is inapplicable and in
such cases the grounds on which it is inapplicable;
d) the territories in respect of which it reserves its decision.
2. The undertakings referred to in subparagraphs (a) and (b) of paragraph
1 of this Article shall be deemed to be an integral part of the ratification
and shall have the force of ratification.
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3. Any Member may at any time by a subsequent declaration cancel in
whole or in part any reservations made in its original declaration in virtue
of subparagraphs (b), (c) or (d) of paragraph 1 of this Article.
4. Any Member may, at any time at which the Convention is subject to
denunciation in accordance with the provisions of Article 16, communicate
to the Director-General a declaration modifying in any other respect the
terms of any former declaration and stating the present position in respect
of such territories as it may specify.
Article 13
1. Where the subject-matter of this Convention is within the self-governing
powers of any non-metropolitan territory, the Member responsible for the
international relations of that territory may, in agreement with the
government of the territory, communicate to the Director-General of the
International Labour Office a declaration accepting on behalf of the
territory the obligations of this Convention.
2. A declaration accepting the obligations of this Convention may be
communicated to the Director-General of the International Labour Office:
a) by two or more Members of the Organisation in respect of any territory
which is under their joint authority; or
b) by any international authority responsible for the administration of any
territory, in virtue of the Charter of the United Nations or otherwise, in
respect of any such territory.
3. Declarations communicated to the Director-General of the International
Labour Office in accordance with the preceding paragraphs of this Article
shall indicate whether the provisions of the Convention will be applied in
the territory concerned without modification or subject to modifications;
when the declaration indicates that the provisions of the Convention will be
applied subject to modifications it shall give details of the said
modifications.
4. The Member, Members or international authority concerned may at any
time by a subsequent declaration renounce in whole or in part the right to
have recourse to any modification indicated in any former declaration.
5. The Member, Members or international authority concerned may, at any
MA. ANGELA AGUINALDO
14

time at which this Convention is subject to denunciation in accordance
with the provisions of Article 16, communicate to the Director-General a
declaration modifying in any other respect the terms of any former
declaration and stating the present position in respect of the application of
the Convention.
ILO Convention No. 95: Right to Organize and Collective
Bargaining Convention
Article 1
1. Workers shall enjoy adequate protection against acts of anti-union
discrimination in respect of their employment.
2. Such protection shall apply more particularly in respect of acts
calculated to--
(a) make the employment of a worker subject to the condition that he shall
not join a union or shall relinquish trade union membership;
(b) cause the dismissal of or otherwise prejudice a worker by reason of
union membership or because of participation in union activities outside
working hours or, with the consent of the employer, within working hours.
Article 2
1. Workers' and employers' organisations shall enjoy adequate protection
against any acts of interference by each other or each other's agents or
members in their establishment, functioning or administration.
2. In particular, acts which are designed to promote the establishment of
workers' organisations under the domination of employers or employers'
organisations, or to support workers' organisations by financial or other
means, with the object of placing such organisations under the control of
employers or employers' organisations, shall be deemed to constitute acts
of interference within the meaning of this Article.
Article 3
Machinery appropriate to national conditions shall be established, where
necessary, for the purpose of ensuring respect for the right to organise as
defined in the preceding Articles.
Article 4
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Measures appropriate to national conditions shall be taken, where
necessary, to encourage and promote the full development and utilisation
of machinery for voluntary negotiation between employers or employers'
organisations and workers' organisations, with a view to the regulation of
terms and conditions of employment by means of collective agreements.
Article 5
1. The extent to which the guarantees provided for in this Convention shall
apply to the armed forces and the police shall be determined by national
laws or regulations.
2. In accordance with the principle set forth in paragraph 8 of Article 19 of
the Constitution of the International Labour Organisation the ratification of
this Convention by any Member shall not be deemed to affect any existing
law, award, custom or agreement in virtue of which members of the armed
forces or the police enjoy any right guaranteed by this Convention.
Article 6
This Convention does not deal with the position of public servants engaged
in the administration of the State, nor shall it be construed as prejudicing
their rights or status in any way.
Article 7
The formal ratifications of this Convention shall be communicated to the
Director-General of the International Labour Office for registration.
Article 8
1. This Convention shall be binding only upon those Members of the
International Labour Organisation whose ratifications have been registered
with the Director-General.
2. It shall come into force twelve months after the date on which the
ratifications of two Members have been registered with the Director-
General.
3. Thereafter, this Convention shall come into force for any Member twelve
months after the date on which its ratification has been registered.
Article 9
MA. ANGELA AGUINALDO
15

1. Declarations communicated to the Director-General of the International
Labour Office in accordance with paragraph 2 of Article 35 of the
Constitution of the International Labour Organisation shall indicate --
a) the territories in respect of which the Member concerned undertakes
that the provisions of the Convention shall be applied without modification;
b) the territories in respect of which it undertakes that the provisions of the
Convention shall be applied subject to modifications, together with details
of the said modifications;
c) the territories in respect of which the Convention is inapplicable and in
such cases the grounds on which it is inapplicable;
d) the territories in respect of which it reserves its decision pending further
consideration of the position.
2. The undertakings referred to in subparagraphs (a) and (b) of paragraph
1 of this Article shall be deemed to be an integral part of the ratification
and shall have the force of ratification.
3. Any Member may at any time by a subsequent declaration cancel in
whole or in part any reservation made in its original declaration in virtue of
subparagraph (b), (c) or (d) of paragraph 1 of this Article.
4. Any Member may, at any time at which the Convention is subject to
denunciation in accordance with the provisions of Article 11, communicate
to the Director-General a declaration modifying in any other respect the
terms of any former declaration and stating the present position in respect
of such territories as it may specify.
Article 10
1. Declarations communicated to the Director-General of the International
Labour Office in accordance with paragraph 4 or 5 of Article 35 of the
Constitution of the International Labour Organisation shall indicate
whether the provisions of the Convention will be applied in the territory
concerned without modification or subject to modifications; when the
declaration indicates that the provisions of the Convention will be applied
subject to modifications, it shall give details of the said modifications.
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2. The Member, Members or international authority concerned may at any
time by a subsequent declaration renounce in whole or in part the right to
have recourse to any modification indicated in any former declaration.
3. The Member, Members or international authority concerned may, at any
time at which this Convention is subject to denunciation in accordance
with the provisions of Article 11, communicate to the Director-General a
declaration modifying in any other respect the terms of any former
declaration and stating the present position in respect of the application of
the Convention.
Article 11
1. A Member which has ratified this Convention may denounce it after the
expiration of ten years from the date on which the Convention first comes
into force, by an act communicated to the Director-General of the
International Labour Office for registration. Such denunciation shall not
take effect until one year after the date on which it is registered.
2. Each Member which has ratified this Convention and which does not,
within the year following the expiration of the period of ten years
mentioned in the preceding paragraph, exercise the right of denunciation
provided for in this Article, will be bound for another period of ten years
and, thereafter, may denounce this Convention at the expiration of each
period of ten years under the terms provided for in this Article.
Article 12
1. The Director-General of the International Labour Office shall notify all
Members of the International Labour Organisation of the registration of all
ratifications, declarations and denunciations communicated to him by the
Members of the Organisation.
2. When notifying the Members of the Organisation of the registration of
the second ratification communicated to him, the Director-General shall
draw the attention of the Members of the Organisation to the date upon
which the Convention will come into force.
STANDARD CHARTERED BANK EMPLOYEES UNION V. CONFESSOR
432 SCRA 308
HELD:
MA. ANGELA AGUINALDO
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Under the International Labor Organization Convention (ILO) No. 87
FREEDOM OF ASSOCIATION AND PROTECTION OF THE RIGHT TO
ORGANIZE to which the Philippines is a signatory, "workers and employers,
without distinction whatsoever, shall have the right to establish and,
subject only to the rules of the organization concerned, to job
organizations of their own choosing without previous authorization."
The aforcited ILO Conventions are incorporated in our Labor Code,
particularly in Article 243 thereof, which provides:
ART. 243. COVERAGE AND EMPLOYEES’ RIGHT TO SELF-
ORGANIZATION. All persons employed in commercial, industrial
and agricultural enterprises and in religious, charitable, medical
or educational institutions whether operating for profit or not,
shall have the right to self-organization and to form, join, or assist
labor organizations of their own choosing for purposes of
collective bargaining. Ambulant, intermittent and itinerant
workers, self-employed people, rural workers and those without
any definite employers may form labor organizations for their
mutual aid and protection.
and Articles 248 and 249 respecting ULP of employers and labor
organizations.
Parenthetically, if an employer interferes in the selection of its negotiators
or coerces the Union to exclude from its panel of negotiators a
representative of the Union, and if it can be inferred that the employer
adopted the said act to yield adverse effects on the free exercise to right to
self-organization or on the right to collective bargaining of the employees,
ULP under Article 248(a) in connection with Article 243 of the Labor Code
is committed.
EXTENT AND SCOPE OF RIGHT
ART. 243. Coverage and employees’ right to self-organization. - All
persons employed in commercial, industrial and agricultural enterprises
and in religious, charitable, medical, or educational institutions, whether
operating for profit or not, shall have the right to self-organization and to
form, join, or assist labor organizations of their own choosing for purposes
of collective bargaining. Ambulant, intermittent and itinerant workers, self-
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employed people, rural workers and those without any definite employers
may form labor organizations for their mutual aid and protection. (As
amended by Batas Pambansa Bilang 70, May 1, 1980).
ART. 246. Non-abridgment of right to self-organization. - 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. Such right shall include the right to form, join, or assist labor
organizations for the purpose of collective bargaining through
representatives of their own choosing and to engage in lawful concerted
activities for the same purpose for their mutual aid and protection, subject
to the provisions of Article 264 of this Code. (As amended by Batas
Pambansa Bilang 70, May 1, 1980).
PAN-AMERICAN WORLD AIRWAYS V. PAN-AMERICAN EMPLOYEES
ASSOCIATION
27 SCRA 1202
• Refusal of the company to admit back to work the union officers
who resorted to a strike upon failure to come up with a concrete
agreement.
HELD:
The moment management displays what in this case appears to be grave
but unwarranted distrust in the union officials discharging their functions
just because a strike was resorted to, then the integrity of the collective
bargaining process itself is called into question. It would have been
different if there were a rational basis for such fears, purely speculative in
character. The record is bereft of slightest indication that any danger,
much less one clear and present, is to be expected from their return to
work. Necessarily, the union officials have the right to feel offended by the
fact that, while they will be paid their salaries in the meanwhile they would
not be considered as fit persons to perform the duties pertaining to the
positions held by them. Far from being generous such an offer could
rightfully, be considered insulting.
The greater offense is to the labor movement itself, more specifically to the
right of self-organization. There is both a constitutional and statutory
recognition that laborers have the right to form unions to take care of their
interests vis-a-vis their employers. Their freedom organizations would be
MA. ANGELA AGUINALDO
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rendered nugatory if they could not choose their own leaders to speak on
their behalf and to bargain for them.
If petitioner were to succeed in their unprecedented demand, the laborers
in this particular union would thus be confronted with the sad spectacle of
the leaders of their choice condemned as irresponsible, possibly even
constituting a menace to the operations of the enterprise. That is an
indictment of the gravest character, devoid of any factual basis. What is
worse, the result, even if not intended, would be to call into question their
undeniable right to choose their leaders, who must be treated as such with
all the respect to which they are legitimately entitled. The fact that they
would be paid but not be allowed to work is, to repeat, to add to the
infamy that would thus attach to them necessarily, but to respondent
union equally.
UST FACULTY UNION V. BITONIO
Supra
WORKER QUALIFICATIONS
Article 277 (c). Any employee, whether employed for a definite period or
not, shall, beginning on his first day of service, be considered as an
employee for purposes of membership in any labor union. (As amended by
Section 33, Republic Act No. 6715).
UST FACULTY UNION V. BITONIO
Supra
WORKERS WITH RIGHT TO SELF-ORGANIZATION
ALL EMPLOYEES
ART. 243. Coverage and employees’ right to self-organization. - All
persons employed in commercial, industrial and agricultural enterprises
and in religious, charitable, medical, or educational institutions, whether
operating for profit or not, shall have the right to self-organization and to
form, join, or assist labor organizations of their own choosing for purposes
of collective bargaining. Ambulant, intermittent and itinerant workers, self-
employed people, rural workers and those without any definite employers
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LABOR 2 DISINI NOTES (PART 2: LABOR RELATIONS)
may form labor organizations for their mutual aid and protection. (As
amended by Batas Pambansa Bilang 70, May 1, 1980).
Article 212. xxx (f) "Employee" includes any person in the employ of an
employer. The term shall not be limited to the employees of a particular
employer, unless the Code so explicitly states. It shall include any
individual whose work has ceased as a result of or in connection with any
current labor dispute or because of any unfair labor practice if he has not
obtained any other substantially equivalent and regular employment.
VICTORIANO V. ELIZALDE ROPE WORKERS UNION
59 SCRA 54
HELD:
Both the Constitution and Republic Act No. 875 recognize freedom of
association. Section 1 (6) of Article III of the Constitution of 1935, as well
as Section 7 of Article IV of the Constitution of 1973, provide that the right
to form associations or societies for purposes not contrary to law shall not
be abridged. Section 3 of Republic Act No. 875 provides that employees
shall have the right to self-organization and to form, join of assist labor
organizations of their own choosing for the purpose of collective bargaining
and to engage in concerted activities for the purpose of collective
bargaining and other mutual aid or protection. What the Constitution and
the Industrial Peace Act recognize and guarantee is the "right" to form or
join associations. Notwithstanding the different theories propounded by
the different schools of jurisprudence regarding the nature and contents of
a "right", it can be safely said that whatever theory one subscribes to, a
right comprehends at least two broad notions, namely: first, liberty or
freedom, i.e., the absence of legal restraint, whereby an employee may act
for himself without being prevented by law; and second, power, whereby an
employee may, as he pleases, join or refrain from Joining an association. It
is, therefore, the employee who should decide for himself whether he
should join or not an association; and should he choose to join, he himself
makes up his mind as to which association he would join; and even after
he has joined, he still retains the liberty and the power to leave and cancel
his membership with said organization at any time. It is clear, therefore,
that the right to join a union includes the right to abstain from joining any
union. Inasmuch as what both the Constitution and the Industrial Peace
Act have recognized, and guaranteed to the employee, is the "right" to join
associations of his choice, it would be absurd to say that the law also
MA. ANGELA AGUINALDO
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imposes, in the same breath, upon the employee the duty to join
associations. The law does not enjoin an employee to sign up with any
association.
The right to refrain from joining labor organizations recognized by Section
3 of the Industrial Peace Act is, however, limited. The legal protection
granted to such right to refrain from joining is withdrawn by operation of
law, where a labor union and an employer have agreed on a closed shop,
by virtue of which the employer may employ only member of the collective
bargaining union, and the employees must continue to be members of the
union for the duration of the contract in order to keep their jobs. Thus
Section 4 (a) (4) of the Industrial Peace Act, before its amendment by
Republic Act No. 3350, provides that although it would be an unfair labor
practice for an employer "to discriminate in regard to hire or tenure of
employment or any term or condition of employment to encourage or
discourage membership in any labor organization" the employer is,
however, not precluded "from making an agreement with a labor
organization to require as a condition of employment membership therein,
if such labor organization is the representative of the employees". By
virtue, therefore, of a closed shop agreement, before the enactment of
Republic Act No. 3350, if any person, regardless of his religious beliefs,
wishes to be employed or to keep his employment, he must become a
member of the collective bargaining union. Hence, the right of said
employee not to join the labor union is curtailed and withdrawn.
To that all-embracing coverage of the closed shop arrangement, Republic
Act No. 3350 introduced an exception, when it added to Section 4 (a) (4)
of the Industrial Peace Act the following proviso: "but such agreement
shall not cover members of any religious sects which prohibit
affiliation of their members in any such labor organization".
Republic Act No. 3350 merely excludes ipso jure from the
application and coverage of the closed shop agreement the
employees belonging to any religious sects which prohibit
affiliation of their members with any labor organization. What the
exception provides, therefore, is that members of said religious
sects cannot be compelled or coerced to join labor unions even
when said unions have closed shop agreements with the employers;
that in spite of any closed shop agreement, members of said religious
sects cannot be refused employment or dismissed from their jobs on the
sole ground that they are not members of the collective bargaining union.
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It is clear, therefore, that the assailed Act, far from infringing the
constitutional provision on freedom of association, upholds and
reinforces it. It does not prohibit the members of said religious
sects from affiliating with labor unions. It still leaves to said
members the liberty and the power to affiliate, or not to affiliate,
with labor unions. If, notwithstanding their religious beliefs, the members
of said religious sects prefer to sign up with the labor union, they can do
so. If in deference and fealty to their religious faith, they refuse to sign up,
they can do so; the law does not coerce them to join; neither does the law
prohibit them from joining; and neither may the employer or labor union
compel them to join. Republic Act No. 3350, therefore, does not violate the
constitutional provision on freedom of association.
KAPATIRAN SA MEAT AND CANNING DIVISION V. CALLEJA
162 SCRA 367
HELD:
After deliberating on the petition and the documents annexed thereto, We
find no merit in the Petition. The public respondent did not err in
dismissing the petitioner's appeal in BLR Case No. A-12-389-87. This
Court's decision in Victoriano vs. Elizalde Rope Workers' Union, 59 SCRA 54,
upholding the right of members of the IGLESIA NI KRISTO sect not to join
a labor union for being contrary to their religious beliefs, does not bar the
members of that sect from forming their own union. The public respondent
correctly observed that the "recognition of the tenets of the sect ... should
not infringe on the basic right of self-organization granted by the
constitution to workers, regardless of religious affiliation."
The fact that TUPAS was able to negotiate a new CBA with ROBINA within
the 60-day freedom period of the existing CBA, does not foreclose the right
of the rival union, NEW ULO, to challenge TUPAS' claim to majority status,
by filing a timely petition for certification election on October 13, 1987
before TUPAS' old CBA expired on November 15, 1987 and before it
signed a new CBA with the company on December 3, 1987. As pointed out
by Med-Arbiter Abdullah, a "certification election is the best forum in
ascertaining the majority status of the contending unions wherein the
workers themselves can freely choose their bargaining representative thru
secret ballot." Since it has not been shown that this order is tainted with
unfairness, this Court will not thwart the holding of a certification election.
MA. ANGELA AGUINALDO
19

GOVERNMENT CORPORATION EMPLOYEES
ART. 244. Right of employees in the public service. - Employees of
government corporations established under the Corporation Code shall
have the right to organize and to bargain collectively with their respective
employers. All other employees in the civil service shall have the right to
form associations for purposes not contrary to law. (As amended by
Executive Order No. 111, December 24, 1986).
SUPERVISORS
ART. 245. Ineligibility of managerial employees to join any labor
organization; right of supervisory employees. - Managerial employees
are not eligible to join, assist or form any labor organization. Supervisory
employees shall not be eligible for membership in a labor organization of
the rank-and-file employees but may join, assist or form separate labor
organizations of their own. (As amended by Section 18, Republic Act No.
6715, March 21, 1989).
ART. 245-A. Effect of inclusion as members of employees outside
the bargaining unit. The inclusion as union members of employees
outside the bargaining unit shall not be a ground for the cancellation of the
registration of the union. Said employees are automatically deemed
removed from the list of membership of said union.
ART. 212. (m) "Managerial employee" is one who is vested with the
powers or prerogatives to lay down and execute management policies
and/or to hire, transfer, suspend, lay-off, recall, discharge, assign or
discipline employees. Supervisory employees are those who, in the interest
of the employer, effectively recommend such managerial actions if the
exercise of such authority is not merely routinary or clerical in nature but
requires the use of independent judgment. All employees not falling within
any of the above definitions are considered rank-and-file employees for
purposes of this Book.
(g) "Labor organization" means any union or association of employees
which exists in whole or in part for the purpose of collective bargaining or
of dealing with employers concerning terms and conditions of
employment.
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