COLLECTIVE BARGAINING

AND ADMINISTRATION OF
AGREEMENT
Part 1. COLLECTIVE BARGAINING CONCEPT AND
PROCEDURE
SCOPE

ART. 260 [250] • PROCEDURE IN COLLECTIVE

BARGAINING
• DUTY TO BARGAIN COLLECTIVELY IN THE
ART. 261 [251] ABSENCE OF COLLECTIVE BARGAINING
AGREEMENTS

ART. 262 [252] • MEANING OF DUTY TO BARGAIN

COLLECTIVELY
• DUTY TO BARGAIN COLLECTIVELY WHEN
ART. 263 [253] THERE EXISTS A COLLECTIVE BARGAINING
AGREEMENT

ART. 264 [253-A] • TERMS OF A COLLECTIVE

BARGAINING AGREEMENT

ART. 265 [254] • INJUNCTION PROHIBITED

Overview/Key Qualities
1. How is collective bargaining done? May the parties
devise their own procedure?
2. The prevailing practice is single enterprise bargaining.
Is multi-employer bargaining allowed?
3. What are the elements of the duty to bargain,
violation of which may constitute ULP?
4. What are the compulsory and optional subjects of
bargaining?
5. What are the requirements of valid ratification of a
CBA?
6. When does a CBA take effect? Up to when is it
effective? May its life be extended by non-renewal or
by mutual agreement?
Concept of Collective Bargaining

It is a democratic
framework to
stabilize the
 Democratic framework
 Stability
relation between
labor and
management to
create a climate
of sound and
stable industrial  Industrial peace
peace. It is a

 Legal obligation
mutual
responsibility of
the employer
and the union
and is their legal
obligation.
 Continuous process

 Employer-employee relations
FOUR PROCESSES
Negotiation between
representatives of the The execution of a written
management and the contract embodying the
union over “wages, hours,
and other terms…of terms agreed upon
employment”

Negotiation over the terms

Negotiation of any of a new contract or
question arising as to the proposed modifications,
interpretation or when an existing
application of the contract agreement is validly open
for negotiations
A SYSTEM OF CONTINUOUS
PROCESSES
LEGISLATIVE • Negotiation of
PHASE Contracts

EXECUTIVE • Administration of
PHASE Contracts

JUDICIAL • Interpretation or
PHASE Application of Contracts
Collective Bargaining Agreement

A contract
executed upon
request of either
 Generalized code
the employee or
the exclusive
bargaining  Whole employment relationship
representative of
the employees
incorporating the
agreement
 Rights and duties of parties
reached after

 Industrial self-government
negotiations with
respect to wages,
hours of work and
all other terms
 Grievance machinery
and conditions of
employment,
including
proposals for
adjusting any
grievances or  Private law
questions under
such agreement.
 WORDS TO REMEMBER

“…wages, hours of
work, and all other
terms and conditions
of employment…”
ART. 260 (a)

1. When a party desires to negotiate an

agreement,
2. it shall serve a upon the
other party with a statement of its
proposals.
3. The other party shall make a reply
thereto
from receipt of such notice;
ART. 260 (b)

1. Should differences arise on the basis

of such notice and reply,
may request for a
conference
3. which shall begin
from the date of
request
ART. 260 (c)
1. If the dispute is not settled, the board shall intervene

and immediately call the parties to

conciliation meetings.
2. The board
requiring the attendance of the parties
to such meetings.
3. It shall be the of the parties to participate fully
and promptly in the conciliation meetings the board
may call.
ART. 260 (d)

1. During the conciliation

proceedings in the Board,
2. the parties are prohibited from
doing
the early
settlement of the disputes
ART. 260 (e)

1. The Board shall exert all

efforts to settle disputes
amicable and encourage the
parties to submit their case to
a voluntary arbitrator.
JURISDICTIONAL PRECONDITIONS OF
COLLECTIVE BARGAINING
Possession of the status of
majority representation of the
employees’ representative in
accordance with any of the
Proof of majority
means of selection or representation
designation provided for by
the Labor Code

A demand to bargain
under Article 260
[250] par. (a) of the
New Labor Code
PARTIES TO COLLECTIVE BARGAINING

EMPLOYER EMPLOYEE

 Duty to bargain  Legitimate labor

exclusive between organization or
employer and  Any officer or agent
employee of such organization
whether or not
 Where there is no duty employed
to bargain, there is no
 Duly authorized by
right to violate employees
MINORITY vs. MAJORITY UNION ULP

MANAGEMENT UNION

 Refusal of Collective  ULP: where there is a

Bargaining: dealing legitimate
representation concern,
and negotiation with to strike and demand
the minority that management
representative to the engage in collective
exclusion of the bargaining.
majority
See Lakas ng Mangagawang
representative 
Makabayan vs. Marcelo Enterprises
BARGAINING TIME FRAME

BEGINS ENDS

 Jurisdictonal  No Time Limit

Preconditions Present
:
within 12 mos. from
and
of
exclusive bargaining
representative
CERTIFICATION YEAR
 Absent unusual circumstances, an employer commits
an unfair labor practice by refusing to bargain with
the union during its certification year,
notwithstanding the repudiation of the union by the
majority of its employees before expiration of the
one-year period.
 The rule is the same whether the union lost its
majority as a result of the employer’s unfair labor
practices or through no fault of the employer.
 Following expiration of the certification period,
there continues to be a presumption in favor of a
union majority.
SINGLE ENTERPRISE vs. MULTI-
EMPLOYER BARGAINING
SINGLE MULTI

 D.O. No. 40-03: “…The  Industry-wide

recognized or certified
labor union and its Bargaining
employer may adopt  P.D. No. 442
such procedures and
processes they may  E.O. No. 111
deem appropriate and  D.O. No. 40-03
necessary for the early
termination of their
negotiations…”
ART. 261

1. In the

providing for a more expeditious

manner of collective bargaining,

in accordance
with the provisions of this code.
ART. 262
1. The duty to bargain collectively means the
performance of a mutual obligation to meet and
convene promptly and expeditiously in
for the purpose of negotiating an agreement with
respect to
including
proposals for adjusting any grievances or
questions arising under such agreement
2. and executing a contract incorporating such
agreements if requested by either party but such
duty does not compel any party to agree to a
proposal or to make any concession.
ART. 263
1. When there is a collective bargaining agreement, the
duty to bargain collectively shall also mean that
neither party shall terminate nor modify such
agreement during its lifetime.
2. However, either party can serve a to
terminate or modify the agreement at
prior to its expiration date.
3. It shall be the duty of both parties to keep the status
quo and to continue in full force and effect the terms
and conditions of the existing agreement
and/or until a new agreement is
reached by the parties.
60 DAY PERIOD

ART. 263 ART. 264

 Nonrepresentational  THE FREEDOM PERIOD

aspects provisions of
the CBA
Duty to Bargain

Art. 261 Art. 263

 The mutual obligation  To meet and convene,

of the employer and as well as the
the employees’ obligation not to
majority union to meet terminate or modify
and convene. the CBA during its
lifetime.
FOUR FORMS OF ULP IN
BARGAINING
FAILURE OR EVADING THE
REFUSAL TO MANDATORY
MEET AND SUBJECTS OF
CONVENE BARGAINING

BAD FAITH IN
BARGAINING, INCLUDING GROSS
FAILURE OR REFUSAL TO
EXECUTE THE CLLECTIVE VIOLATION
AGREEMENT, IF
REQUESTED OF THE CBA
FIRST ULP IN BARGAINING
FAILURE OR REFUSAL TO MEET AND CONVENE
FAILURE OR REFUSAL TO MEET AND
CONVENE
An employer is
guilty of an unfair
 Legal obligation for both parties
labor practice in
refusing to bargain  Good faith bargaining involves
with the
representative of a
majority of his
recognizing the union
employees. To
bargain in good  Refusal by an employer to bargain
faith, an employer
must not only meet
and confer with the
collectively with his employees
union which
represents his
constitutes “interference” with the
employees, but also
must recognize the
latter’s right to self-organization.
union for the
purpose of
collective
bargaining.
SUMMARIZED SCENARIOS

ULP NOT ULP

 Unresolved petition for  Refusal to bargain

Union Cancellation with an Unregistered
 Bad faith sale of company Chapter
 Economic Exigencies do not
justify Refusal to Bargain
 Conversion to
 Interference in the Selection
Independent Franchise
of the Union’s Negotiating or Operation
Panel
 Non-reply to Collective
Bargaining Proposal
 SUCCESSOR COMPANY
continuity and identity
1. The basic rule is that if the transfer of assets and the
employees from one employer to another
, the
transferor’s duty to recognize and bargain with an
incumbent union devolves upon the transferee as
“successor employer”.
2. If the transfer of assets and employee’s from one
employer to another
, the old employer’s duty to
with an incumbent union
devolves on the new employer as successor employer.
Acts not Deemed Refusal to Bargain
1. Adoption of an adamant bargaining position in
good faith, particularly where the company is
operating at a loss;
2. Refusal to bargain over demands for commission
of unfair labor practices;
3. Refusal to bargain during period of illegal strike.
Neither is there duty to bargain where:
1. There is no request for bargaining;
2. The union seeks recognition for an inappropriately
large unit;
3. The union seeks to represent some persons who are
excluded from the Act;
4. The rank-and-file unit includes supervisors or
inappropriate otherwise;
5. The demand for recognition and bargaining is made
within the year following a certification election in
which the clear choice was no union and no ad interim
significant change has taken place in the unit;
6. The union makes unlawful bargaining demands.
SECOND ULP IN BARGAINING
EVADING THE MANDATORY SUBJECTS
MANDATORY SUBJECTS

“…wages, hours of
work, and all other
terms and conditions
of employment…”
EVADING MANDATORY SUBJECTS

A mere remote,  Employer’s duty to bargain is limited to the

direct, or incidental
impact is insufficient
mandatory bargaining subjects, but he may
to render a subject bargain to an impasse
a mandatory
subject of  Wages and Employment Conditions
bargaining; in
order for a matter  Workloads and Work Rules
ro be subject t
mandatory  Code of Conduct
collective
bargaining, it must  Management Prerogatives Clause
materially or
significantly affect  Union Discipline Clause
not only what an
employer has  Arbitration, Strike-Vote, No-Strike Clauses
already granted,
but also what it has  No-Lockout Clause
announced it
intends to grant.  Statutory Benefits
EXAMPLES OF MANDATORY SUBJECTS
1. Wages and other types of compensation, including merit
increases
2. Working hours and working days, including work shifts
3. Vacations and holidays
4. Bonuses
5. Pensions and retirement plans
6. Seniority
7. Transfer
8. Lay-offs
9. Employee workloads
10. Work rules and regulations
11. Rent of company houses
12. Union security arrangements
IMPASSE OR DEADLOCK

A bargaining  Mandatory vs. Non-mandatory subjects

impasse over
an issue exists  Duty to bargain remains
where good
faith
bargaining on
 Valid reason to declare a strike or lock-
the part of out
the parties
has failed to
resolve the
issue and
there are no
definite plans
for further
efforts to brak
the deadlock.
BARGAINING TO DEADLOCK

MANDATORY NON-MANDATORY

 NOT BAD FAITH: NO  BAD FAITH: ULP

ULP
THIRD ULP IN BARGAINING
BAD FAITH
INSTANCES OF BAD FAITH
1. Delay of, or imposing time limit on, negotiations
2. Surface bargaining; Shifting Bargaining Positions;
Blue Sky Bargaining
3. Inflexible Demands; Strike Amid Negotiation
4. Boulwarism; Take-it-or-leave-it Bargaining
INSTANCES EXPLAINED

SURFACE SHIFTING BLUE SKY

BARGAINING BARGAINING BARGAINING
POSITIONS
• A sophisticated • Repeated shifts in • Exaggerated or
pretense in the position and unreasonable
form of apparent attitude on the proposals
bargaining, it part of an
involves going employer
through the whenever a
motions of tentative
negotiating agreement is
without any legal reached
intent to reach an
agreement.
BOULWARISM

INTENSE MARKETING TAKE IT OR LEAVE IT

 A campaign that  An approach to

pictures the Company as
the true defender of the
employees’ interests,
further denigrating the
union, and sharply
curbing the Company’s
ability to change its own
position.
negotiations which
emphasized both the
powerlessness and
uselessness of the
Union to its members
FOURTH ULP IN BARGAINING
GROSS VIOLATION OF THE CONTRACT
GROSS VIOLATION OF THE
CONTRACT
Occurs when
the collective
 Violation of the contract amounts to ULP
contrast is
already in
if the violation is gross.
place., but the
collective  Faithful adherence to the contract is a
bargaining
process is not
yet over, and
continuation of the duty to bargain
the duty to
bargain is still  Obligation to renegotiate the CBA
operative
because such when it expires
duty further
requires
faithful
adherence to
the contractual
provisions.
RATIFICATION, EXECUTION,
REGISTRATION
not provided in Arts. 260-265
RATIFICATION
1. Ratified or approved by the majority of all the
workers in the bargaining unit, not just the majority
union
2. Posting of CBA in two conspicuous places for five
days

 Not needed if CBA is the product of an arbitral

award by appropriate government authority or by
a voluntary arbtirator
EXECUTION
 Signing of the CBA
 If formalized, refusal is ULP
 Signing of a contract
REGISTRATION
 Registered with the DOLE Regional Office where
the bargaining union is registered or where it
principally operates.
 Within thirty (30) calendar days from execution of
the agreement
 Failure to register will not invalidate or render CBA
unenforceable
AUTOMATICE RENEWAL

“It shall be the duty of both parties to

keep the status quo and to continue
in full force and effect the terms and
conditions of the existing agreement
and/or
until a new agreement is reached by
the parties.”
ART. 264 & 265
TERMS OF A COLLECTIVE BARGAINING
AGREEMENT

INJUNCTION PROHIBITED
SCOPE

EFFECTIVITY DATE DURATION

 Whether the CBA is  Whether the subject

the first CBA or a provision is
renegotiated CBA representational or
non-representational
Effectivity Date

First CBA Renegotiated CBA

 Whatever date  If concluded within

parties agree on from expiry of
old CBA: takes effect on
date following expiry
 If beyond: no automatic
retroaction. Parties must
agree on terms of
effectivity
DURATION

Non Representational
Aspect
[3 YRS]

Representational
Aspect
[5 YRS]
FREEDOM PERIOD

No petition questioning the majority status

of the incumbent bargaining agent shall
be entertained and no certification
election shall be conducted by the
Department of Labor and Employment
outside of the
immediately before the date of expiry of
such five-year terms of the Collective
Bargaining Agreement.
ART. 265

in any
case involving or growing out of labor
disputes shall be
, except as otherwise
provided in Articles 218 and 264 of
this code.
EXCEPTION
 WHEN PROHIBITED OR UNLAWFUL ACTS ARE
BEING OR ABOUT TO BE COMMITTED
Overview/Key Qualities
1. How is collective bargaining done? May the parties
devise their own procedure?
2. The prevailing practice is single enterprise bargaining.
Is multi-employer bargaining allowed?
3. What are the elements of the duty to bargain,
violation of which may constitute ULP?
4. What are the compulsory and optional subjects of
bargaining?
5. What are the requirements of valid ratification of a
CBA?
6. When does a CBA take effect? Up to when is it
effective? May its life be extended by non-renewal or
by mutual agreement?