Labor Relations Law Sequence based on Atty.
Azucena’s Outline
[There’s a pattern to this trust me]
Preliminary matters
What are the 5 constitutionality
guaranteed rights of labor that revolve
around Labor Relations?
1. PR - Participatory Right in policy making
2. SO - Self-Organization
3. CB - Collective Bargaining
4. CA - Concerted Activity
5. ST - Security of Tenure
When may these constitutional rights
be invoked?
The pre-requisite E-E-Rel or Employer-Employee
Relationship must be proved.
Participatory Right
Do Employees have the Right to
Participate in formulating a code of
conduct in their establishment they are
employed in? Yes
Under Art. 266 workers shall have the right to
participate in policy and decision-making
processes of the establishment where they are
employed insofar as said processes will directly
affect theirrights, benefits and welfare
notwithstanding any provision of law to the
contrary but subject to the IRR the DOLE may
promulgate.
For this purpose, they may form LMC’s Labor
Management Councils. (to be discussed further)
The Right to Self-Organization
Do all Employees have a Right to Self-
Organization?
Yes. All persons employed have the right to self-
organization. But these is different from the
right to form, join or assist labor organization for
purposes of collective bargaining aka unionizing.
May Government Employees unionize?
General Rule: Government employees covered
by E.O. 180 may unionize and negotiate
employment conditions not fixed by law by way
of Collective Negotiation Agreement (CNA). But
they do not have a right strike.
Coverage: E.O. 180 is not applicable to
members of the AFP and the PNP
Exception: Government employees of
establishments under the Corporation Code and
registered with the SEC are governed by the
Labor Code, meaning they have a right to strike.
May Managers Unionize? How about
Supervisors?
Managers cannot. Supervisors may but their
unions must be segregated from that of the
rank-and-file’s union.
Test to Distinguish:
If employee has power to decide and do or
execute such decisions (Manager)
If employee has power to recommend based on
his independent & effective judgment
(Supervisor)
If neither (Rank-and-File)
Who are Confidential Employees? May
they unionize?
No. They cannot unionize. To determine who is
a confidential employee for purposes of barring
him to unionize, the employee must be:
1. Assist or act in confidential capacity; and
2. Formulate, determine and effectuate
management policies in the field of labor
relations or in other words, he must handle
prescribed responsibilities relating to labor
relations.
Note: Cooperative members are co-owners
of the cooperative hence cannot unionize
against his co-owners but may self-organize.
Do Foreigners have Right to Self-
Organize and Right to Unionize?
General Rule: Foreigners are prohibited from
engaging in any trade union activities
Trade Union Activities include: [LO-CBA-CA-UM-
Rep-O]
1. to organize and administer labor
organizations;
2. negotiate and administer CBA;
3. all forms of concerted action;
4. organize, manage, assist union meetings;
5. any form of involvement in representation
proceedings
6. other analogous activities
Exception: Foreigners with valid DOLE issued
permits may self-organize and unionize provided
their country grants Filipinos the same rights
(Reciprocity Clause)
Note: Persons whose religion forbade
membership in labor unions cannot be
compelled into union membership (Religious
Objectors)
IMPORTANT REMINDER: Right to S.O.
cannot be curtailed or else Employer would be
committing an Unfair Labor Practice or ULP.
[Now that we’ve established the right to
organize, assume now that we have a labor
organization!]
Labor Organization
What is a Labor Organization? Compare with
a Worker’s Association?
Labor Organization (LO) - any union or
association of employees which exists in whole
or in part: (1) for the purpose of collective
bargaining or (2) of dealing with employers
concerning terms and conditions of employment.
Workers’ Association – an association of workers
organized for the mutual aid and protection of
its members for any purpose other than
collective bargaining.
[LO based from the definition may either be a
union or a workers’ association?]
What is LLO?
Legitimate Labor Organization (LLO) - any labor
organization duly registered with the DOLE.
An EBR?
Exclusive Bargaining Representative (EBR) – is
the union chosen by the collective bargaining
unit to represent them in the bargaining with
the employer
N.B. To be an EBR one must first be a LLO.
What is a LMC?
Labor Management Council (LMC) – serve as
forum where (1) workers may exercise their
participatory rights in decision and policy-making
of the employers in so far as it concerns their
rights and benefits; and (2) where management
and employees air their grievances.
What are the Rights of Members of a
LO? [PDPI]
1. Political right - the right to vote and
be voted for, subject to lawful provisions
on qualifications and disqualifications.
2. Deliberative and Decision-Making
Right - the right to participate in
deliberations on major policy questions
and decide them by secret ballot.
3. Rights Over Money Matters – which
include the rights: [EURACSA]
a. against imposition of excessive
fees;
b. against unauthorized collection of
contributions or unauthorized
disbursements;
c. to require adequate records of
income and expenses;
d. to access financial records;
e. to vote on officers compensation;
f. to vote on special assessment;
g. to be deducted a special
assessment only with the
member’s written authorization.
4. Right to Information - the right to be
informed about:
a. the organization’s constitution and
by- laws,
b. collective bargaining agreement,
and labor laws.
 Effect of Violations of these Rights?
It will be a ground for cancellation of union
registration or expulsion of an officer from
office, whichever is appropriate.
Who may File Complaint for such Violation?
To whom filed?
Any member specially concerned may report the
violation or at least 30% of all the members of
the union or any member or members
specifically concerned may report such violation
with the Regional Director.
On Election or Appointment of Union
Officers, Who are not Eligible?
1. Subversives or those engaged in subversive
activities
2. Persons who have been convicted of a crime
involving moral turpitude.
Term of Office of Union Officers – 5 years
Before the Union may validly levy or
check-off from the individual’s salary
any amount for purposes of collecting
special assessment fees, what must
the Union do? What happens if the
Union failed to do these?
Note: Special Assessment Fees examples:
attorney’s fee or negotiation fees (which as a
rule should be paid by the Union)
1. Submit to the employer the written
resolution of the majority of all of the
members of the Union at a general
membership meeting duly called for the
purpose.
2. Procure the individual employee’s
written authorization which specifies the
amount, purpose and beneficiary of the
deduction.
The Union may be charged with illegal
deductions from employee’s salary if it fails
to comply.
When may these requirements for levy or
check-off of fees be waived?
1. For mandatory activities provided
under the Code; and
2. When non-members of the union
avail of the benefits of the CBA.
To be or not to be a Legitimate LO?
If your LO is not a LLO, is your LO
illegal?
No. Registration with the DOLE simply entitles
LLO with some perks or rights that non-
registered LO cannot have.
What are these rights?
Basically a registered LO has the legal
personality to deal with the employer in
representation of its members. Its rights are:
1. Own property, real or personal, for the
use and benefit of the labor organization
and its members;
2. Sue and be sued in its registered name;
and
3. Undertake all other activities designed to
benefit the organization and its
members, including cooperative,
housing, welfare and other projects not
contrary to law.
Its perk from the Government: tax free
donations from similar organizations local or
foreign provided these donations are actually,
directly and exclusively used for lawful
purposes.
If the LLO becomes an EBR what are
its other rights?
1. [If it wins the certification election] it may
be certified as the EBR of the collective
bargaining unit (CBU) for the purpose of
collective bargaining;
2. Act as the representative of the collective
bargaining unit (CBU) for the purpose of
collective bargaining;
3. [Thus, it has the right] To be furnished by
the employer, upon written request, with its
annual audited financial statements,
including the balance sheet and the profit
and loss statement, either:
 within thirty (30) calendar days from
the date of receipt of the request, after
the union has been duly recognized by
the employer or certified as the sole
and exclusive bargaining
representative of the employees in the
bargaining unit, or
 within sixty (60) calendar days before
the expiration of the existing CBA, or
during the collective bargaining
negotiation;
What are the 2 ways to register your
union?
Independent Registration or Chartering
What is the difference between these to
ways?
1. Name of the applicant labor union, its
principal address; the name of its officers
and their respective addresses; approximate
number of employees in the bargaining
unit where it seeks to operate, with a
statement that it is not reported as a
chartered local of any federation or national
union;
2. the minutes of the organizational meeting(s)
and the list of employees who participated
in the said meeting(s);
3. the name of all its members comprising at
least 20% of the employees in the
bargaining unit;
4. if the applicant has been in existence for
one or more years, the annual financial
reports unless it has not collected any
amount from the members, in which case a
statement to this effect shall be included in
the application;
5. Constitution and by-laws, minutes of its
adoption or ratification, and the list of the
members who participated in it.

Basis Independent Chartering  The list of ratifying members shall

Registration be dispensed with where the
Registration obtained by Registered constitution and by-laws was ratified
the union’s federation or or adopted during the organizational
own action national union meeting.
issues a charter  In such a case, the factual
and registers the circumstances of the ratification
charter with the shall be recorded in the minutes of
Regional Office or the organizational meeting(s).
Bureau of Labor
Relations All requisite documents and papers shall be
Status Has legal No legal certified under oath by the secretary or the
personality; personality unless treasurer of the organization, as the case may
it avails be, and attested to by its president.
May affiliate independent
with registration Procedural Laws in Registration
federation or
national union Application and Appeal Where

 If Independent Union or Local Chapter –

i. Register with Regional Office
Requirements for Independent Union where union principally operates
Registration? –
ii. Appeal to BLR director
The application for registration be must be iii. Then Appeal CA
accompanied by the following documents: [N-M-
20%-FR-CBL]  If National Union or Federation
i. Register with BLR w/c is
national office altho’ DOLE
 Regional Office receives the
application first;
ii. Appeal to DOLE Sec;
iii. Appeal to CA
Material Periods
 30 days from filing of application –
BLR or Regional Office must act on it
 If denied, within 10 days from
receipt of the decision, applicant may
appeal to the BLR
[Caveat: I will be omitting the affiliation
and disaffiliation and cancellation of
registration]
Right to Collective Bargaining
[Before we go through determining the EBR, let
us determine what an appropriate collective
bargaining unit is]
Bargaining unit (BU)
The bargaining unit refers to a group of
employees sharing mutual interests within a
given employer unit. It may be comprised of all
or less than all of the entire body of employees
in the employer unit or any specific occupational
or geographical grouping with such employer
unit.
[e.g. faculty and administration bargaining units
in one employer-school]
Test to determine the constituency of
an appropriate bargaining unit
Basic test of appropriateness is whether such
unit will best assure all employees of the
exercise of their collective bargaining rights
Now, how to choose your EBR?
The methods of determining are thru:
1. Designation - Voluntary Recognition;
2. Selection -
a. Certification Election
b. Consent Election
Conditions for Voluntary Recognition
(VR)
VR by Employer is allowed only in an enterprise
being unionized for the first time and there is
only 1 LLO seeking recognition to represent the
BU
Requirements for VR [RPS30]
1. Employer and union president must submit a
Joint Statement of Recognition
2. attesting to the VR;
3. Joint Statement of Recognition published for
15 consecutive days in 2 conspicuous places
of the establishment where the union seeks
to operate;
4. Joint Statement of Recognition must state
approximate number of employees in the
accompanied by the names and signatures
of at least a majority of the members of the
BU supporting the VR
5. Joint Statement of Recognition under oath
must be submitted to Regional Office within
30 days following the VR.
May effect of VR lapse?
Yes. If EBR fails to conclude and register CBA
within 1 year from VR, it will lapse and rival
union may file Petition for Certificate Election
Certification Election (CE) is the process
of determining by secret ballot the sole and
exclusive bargaining agent (SEBA) or EBR of
the employees in an appropriate BU, for
purposes of collective bargaining.
Note: The procedure for unorganized
establishment is different from that of an
organized establishment
The procedure for PCE in an
unorganized establishment
Once PCE is filed by a LLO in an unorganized
establishment, Med-Arbiter shall automatically
order the conduct of CE, and such order cannot
be appealed.
Requisites for Holding PCE in
Organized Establishment
[25CDF]
1. PCE must be supported by written consent
of at least 25% of the employees in the BU
to indicate that the challenger has sizeable
membership to possibly win against the EBR
and not just a mere nuisance
2. Observe Certification Bar – no C.E. may be
held within 12 months from a previous C.E.
consent election or VR
3. Observe Deadlock Bar - no C.E. may be held
if there is a pending deadlock submitted to
conciliation or arbitration; or has become a
subject of a valid notice of strike or lock-out
4. Observe Contract Bar – when there is an
existing CBA, PCE may be held only within
the freedom period or the last 60 days
before expiration of the CBA.
Duty of Election Officer prior conduct
of CE
Within 10 days from the Med-Arbiter’s
receipt of the petition, a preliminary
conference must first be conducted by
election officer designated by the DOLE
Regional Office to set mechanics of election
and list of qualified voters
Grounds for Denial of PCE
[NUCE12DC25]
1. Non-appearance in 2 consecutive scheduled
conferences;
2. Petitioning union not listed in DOLE’s
registry of LLO (Unregistered);
3. Failure to submit Charter Certificate;
4. Absence of E-E-Rel
5. Certification Bar or 12 month Bar
6. Deadlock Bar
7. Contract Bar or Existing CBA
8. Lack of 25% Support
Required number of votes in order to have a
valid election – at least majority (50% +1)
of all eligible voters in the BU must cast
their vote
Who wins – the union which obtained a
majority (50% +1) of the valid votes cast
What if none of contending unions got
the majority of the valid votes cast?
Example: CBU has 100 members; thus required
number of votes must be 51.
Luckily, 80 valid votes were cast. Thus to win, a
union must have 41 valid votes in their favour.
But Union A got 40, B got 30 and C got 5 and 5
voted Union. There is no winner. What should
be done? A Run-off Election
Note: No Union Vote is an option in a CE.
Requisites for Run-off Election
1. Majority of the BU voted;
2. Not one of the unions obtained the majority
of the valid votes cast;
3. The votes of all the unions added together
consist of at least half of the valid votes
4. There is no pending challenge to the
election.
Procedure for Run-Off Election or
Rematch
Only the top 2 unions will contend in the
run-off and the No Union choice is excluded.
It shall be held in 10 days unless a protest
has been filed before the Med-Arbiter.
Consent Election – is an election
voluntarily agreed upon by contending
unions with or without DOLE’s intervention,
to determine which union the BU wishes to
represent them
Employer’s Role
First, an employer may file petition - when so
requested to bargain collectively, but there is no
existing CBR, in which case the employer may
petition the Bureau for an election.
However, whether the employer or a contending
union files the employer is a mere bystander
with no right oppose the PCE. The employer’s
participation shall be limited to
1. Being notified of the PCE;
2. Submitting the list of employees to the
Med-Arbiter
Bargaining Procedure
 The Jurisdictional Preconditions for Genuine Impasse or Deadlock – exists
Collective Bargaining PPD where good faith on the part of the parties
has failed to resolve the issue and there is
1. Possession of status of majority no definite plans to break such deadlocks; in
representation of the employees’ which case, it signals the need to continue
representative through any of the means with assistance of 3rd party whose first aim
provided in the Labor Code; to get the parties back to negotiating.
2. Proof of majority representation;
3. Demand to bargain; Kiok Loy The law recognizes a bargaining deadlock
as ground for strike or lock out

What are the mandatory subject of Once a CBA has been finalized, what
collective bargaining [WHVB-PSTL- must be done by the EBR and the
WRHU] Employer?
1. Wages and other types of compensation;
2. Working hours, days and shifts; Posting of the proposed CBA at 2 conspicuous
3. Vacations and holidays; place for 5 days before ratification.
4. Bonuses;
5. Pensions and retirement plans; The CBA negotiated must be ratified by the
6. Seniority; majority of all the workers in the CBU. (But
7. Transfer; there is no need to ratify if CBA was a product of
8. Lay-Offs; an arbitral award).
9. Workloads;
10. Work rules and regulations; Within 30 calendar days, the CBA must be
11. Rent of company houses; registered with DOLE where the bargaining
12. Union security arrangements (Red Book, 382 union is registered or principally operates.
13. Grievance machinery and voluntary Failure to register does not make the CBA
arbitration clause (Beda) unenforceable or invalid but renders contract-
bar rule inoperative
Duty to Bargain in Good Faith
There is no per se test of good faith in Effectivity Date of CBA
bargaining; rather it is based entirely upon the
negotiations as a whole. If first CBA – on date agreed upon by the parties

If renegotiated CBA and finished within 6 mos.

Examples of Bad Faith Bargaining
Surface bargaining – going through the motions
without any legal intent to reach an argument;
Shifting bargaining – repeated shifts on the part
of an employer whenever a tentative agreement
is reached;
Blue-Sky bargaining – making exaggerated or
unreasonable proposals
What if the employer does not reply to
EBR’s proposals?
EBR’s proposed CBA shall be imposed upon the
Employer (Kiok Loy)
from expiry of the old one – it retroacts to the
expiry date.
If beyond 6 mos – date of effectivity or
retroaction may be agreed upon.
What are the 2 kinds of CBA
provisions? What are the life spans of
these provisions?
1. Representational – refers to the identity and
majority status of the union that negotiated
the CBA as EBR; such provisions lasts for 5
years
2. Other terms and conditions including the
economic provisions – may be negotiated
after 3 years
 2. DOLE founds propriety of issuance
If the parties fail to finalize a new CBA, the either motu proprio or upon petition
old CBA will automatically renew to keep the
status quo between the parties.

CBA-Related disputes shall be resolved in

house but failure to settle within 7 calendar
days from its submission to decision, it shall
be automatically referred to voluntary
arbitration VA

The Right to Concerted Activity

Concerted Activity - activity undertaken

by two or more employees or by one on
behalf of others
Strike – cessation of work by employees in
an effort to get more favourable terms for
themselves or concerted refusal by
employees to do any work for their
employer; or work to their customary rate
until the object of the strike is attained by
the employer’s granting the demanded
concession

Grounds for Strike

1. Collective Bargaining Deadlock

2. ULP Act of Employer

Six Factors on Illegality of Strike PPP-MIA

1. Statutory Prohibition
2. Procedural Requirements
3. Purpose either deadlock or ULP
4. Employment of unlawful means and
methods in pursuit of objective;
5. Declared in violation of existing injunction
6. Contrary to existing agreement, e.g. no
strike clause or conclusive arbitration

Procedural requirements
1. Notice of strike filed with NCMB cc
employer;
2. Cooling off period to be observed – 30 days
for deadlock and 15 days for ULP
3. Strike Vote Meeting with 24 prior notice to
NCMB
4. Result of SV reported to NCMB at least 7
days before strike; this is in addition to the
cooling off period
When may DOLE AJ
1. Requested by parties; or