Labor Relations Laws

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Labor Relation Laws
LABOR RELATIONS LAWS
I. Law on Labor Organization (Articles 234-246; 267-271)
II. Law on Collective Bargaining (Articles 250-259)
III. Law on Unfair Labor Practices (Articles 247-249)
IV. Law on Strikes, Picketing and Lockout (Articles 263-266)
V. Law on Settlement of Labor Disputes (Articles 213-225, 226-

233, last 2 paragraphs, 260-262-B, 263(g), 277 (d) (i).
Labor relations laws, just like other labor laws under the Labor
Code, are enacted to implement the constitutional mandates1 on labor.
The elements of labor law are: (1) labor policies; (2) labor
standards law; and (3) labor relations law.
These elements of labor law are interrelated in that each is

complementary to the others.
Labor policies set the guidelines to be implemented by the other

two.
Labor standards prescribe the limits in the terms and conditions

of employment, and are essentially substantive. Their purpose is
protective (e.g. law on hours of work, law on weekly rest period) or
ameliorative (e.g. minimum wage laws, law on holiday pay).
Labor relations laws provide the procedures that govern the

methods by which terms and conditions of work over and above the
limits set by labor standards may be obtained. Hence, they are largely
procedural in character (e.g. law on labor organizations, law on collective
bargaining).
Labor standards, being fixed by law, may be found in the law

itself, while the terms and conditions beyond these standards
obtained under labor relations laws are not found in the law itself, but in
the collective bargaining agreements, arbitration awards and
decisions.
Individual rights of workers vis-à-vis collective rights of labor.
The INDIVIDUAL RIGHTS of WORKERS are found in Article III, Bill

of Rights, while the COLLECTIVE RIGHTS of LABOR in general are
found in the Protection to Labor Clause in Article XIII, Section 3, of the
1987 Constitution. These two sets of rights are NOT IDENTICAL. In fact,
they may, in certain instances, possibly conflict with each other.
INDIVIDUAL RIGHTS OF WORKERS
1. Right to due process

2. Freedom of expression
1
Article XIII, Section 3 of the 1987 Constitution; Article XIII, Section 14, supra; Article XII,
Section 18, supra;
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3. Freedom of association
4. Non-impairment clause
5. Free access to courts and quasi-judicial bodies
6. Right to speedy disposition of cases
7. Right against involuntary servitude
COLLECTIVE RIGHTS OF LABOR
1. Right to self-organization
2. Right to collective bargaining negotiation
3. Right to peaceful concerted activities, including the right to
strike in accordance with law
4. Right to security of tenure
5. Right to humane conditions of work
6. Right to a living wage
7. Right to participate in policy and decision making
I will be focusing more on the first three collective rights as this is

the focal point of labor relations and where BAR questions may be given.
I. RIGHT TO SELF-ORGANIZATION
Underlying reason – the workers and their employer do not stand on equal
footing. They are placed not upon a position of equality but upon a
POSITION OF INEQUALITY. Thus, UNIONISM is the answer to level the
playing field to foster INDUSTRIAL PEACE. In union, there is strength.
This is the PRINCIPLE OF UNIONISM – “One-Union, One-Company
Policy” or “One company-One Bargaining Unit Policy”. Only a well-
organized, high minded labor union speaking with a single voice can deal
with a powerful employer with equality.
The right to self-organization applies to ALL workers, including

GOVERNMENT EMPLOYEES in the civil service (Art. III, Sec. 8; Art. IX,
Sec. 2[5], 1987 Constitution; Sec. 6, E.O. No. 111), and in government-
owned and controlled corporations, WITHOUT ORIGINAL CHARTERS.
This right to self-organization of government employees is subject

to two (2) limitations:
1. High-level employees whose functions are POLICY MAKING or

MANAGERIAL or whose duties are HIGHLY CONFIDENTIAL
are not eligible to join the organization of rank-and-file
government employees (Sec. 3, E.O. No. 180); and
2. The members of the Armed Forces of the Philippines, including
police officers, policemen, firemen and jail guards (Sec. 4, id.).
The right to self-organization is a collective right of labor, as

distinguished from freedom of association which is an individual right of
workers.
The freedom of association clause,2 which now embraces the

public sector, was described by the Supreme Court as “both a right and
a privilege”. This implies not only a right to join a labor union, but also
the privilege of not joining a labor union, of selecting which union to
join, and of disaffiliating from a union. (Victoriano v. Elizalde Rope
Workers Union, 59 SCRA 54).
2
Sec. 8, Art. 111, 1987 Constitution
It is a privilege because the law limits its exercise when it runs in

conflict with the collective right of labor to self-organization as embodied in
the “union security clauses” of collective bargaining agreements
(CBA’s) - i.e. “closed shop”, “union shop” and “maintenance of
membership clause - where the employer may only employ members of
the collective bargaining union and the employees must continue to be
member of the union for the duration of the contract in order to keep their
jobs.
This is so because inherent in every labor union is the RIGHT OF

SELF-PRESERVATION. When members of the union seek disintegration
of the very union to which they belong, they thereby forfeit their rights to
remain as members. The adoption of union security clause is intended to
preserve and continue its existence as a union.
LABOR ORGANIZATION – is “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. (Art. 212 [g])
EMPLOYEES – includes any person in the employ of the employer. The

term shall not be limited to the employees of a particular employer, unless
the Labor Code so explicitly states. It shall include any individual whose
work has ceased as a result of or in connection with any current dispute,
or because of any unfair labor practice if he has not obtained any other
substantially equivalent and regular employment. (Art. 212 [f]).
The definition of “labor organization” indicates the PRINCIPAL

PURPOSE of labor organization, which is COLLECTIVE BARGAINING.
The OTHER PRINCIPAL PURPOSE of labor organization is

“DEALING WITH EMPLOYERS” is comprehensive enough to cover
CONCERTED ACTIVITIES, including STRIKES. But these concerted
activities must be PEACEFUL, while STRIKE, should be IN
ACCORDANCE WITH LAW. The other purpose of labor organization
should, therefore, be LAWFUL.
The SECONDARY PUPOSES of labor organization is to promote

their social, civic and economic betterment, or for mutual aid, benefits, and
the protection of workers in the matter of wages and other incidental
benefits.
KINDS OF LABOR ORGANIZATIONS
1. Independent labor union (basic unit of organized labor; active,

functioning and independent)
2. Legitimate labor organization (registered with BLR, and includes
any branch or local thereof)
3. Company union (prohibited; unlawful, being the result of ULP)
4. Federation and National Unions (alliance of a group of unions in
one industry, area, region or country)
5. Trade associations (labor organizations formed by ambulant,
intermittent and itinerant workers, self-employed people, rural
workers, and those without any definite employers for their
mutual aid and protection (Art. 243, LC)
PROVISIONS OF THE LABOR CODE THAT PROTECTS AND

STRENGTHENS LABOR UNIONS
1. On unfair labor practices;

2. On the right of labor organizations to prescribe their own rules with
respect to the acquisition or retention of membership therein [Art.
249 (a)];
3. Recognizing the validity of closed shop, union shop and other union
security arrangements [Art. 248 (e)];
4. Authorizing deductions or check-offs from the wages of an
employee for union dues [Art. 113 (b)];
5. Allowing the imposition of agency fee [Art. 248 (e); and
6. Prohibiting the abridgement of the right to self-organization (Art.
246).
REGISTRATION OF LABOR ORGANIZATIONS
1. registration fee;
2. names of officers, their addresses, the principal address,
minutes of the organizational meetings and names of workers
who participated in the meetings;
3. names of all its members comprising AT LEAST 20% of ALL the
employees in the BARGAINING UNIT it seeks to operate;
4. if the applicant union has been in existence for one or more
years, copies of its annual financial reports;
5. 4 copies of the constitution and by-laws of the applicant union,
minutes of its adoption or ratification, and list of members who
participated in it; (Art. 234, LC);
6. sworn statement that there is no certified bargaining agent in
the bargaining unit concerned. In case there is an existing CBA,
a sworn statement that the application is filed during the last 60
days of the agreement (freedom period); and
7. the application and all the accompanying documents are
verified under oath by the secretary or the treasurer, as the case
may be, and attested to by the President.
If the applicants are FEDERATIONS or NATIONAL UNIONS, the

additional requirements are:
1. proof of affiliation of AT LEAST TEN (10) LOCALS or

CHAPTERS, each being a duly registered collective
bargaining agent in the establishment or industry in which
it operates;
2. the names and addresses of the COMPANIES where the
LOCALS or CHAPTERS operate, and the list of all the
MEMBERS in EACH COMPANY involved. (Art. 237, LC)
A LOCAL or CHAPTER of a FEDERATION or NATIONAL UNION

becomes a LEGITIMATE LABOR ORGANIZATION only upon submission
of the following: (1) charter certificate, within 30 days from its issuance by
the federation or national union; and (2) the constitution and by-laws, a
statement on the set of officers, and the books of accounts, all of which
are certified under oath by its secretary or treasurer, as the case may be,
and attested to by its president.
Absent compliance with these mandatory requirements, the local or
chapter does not become a legitimate labor organization. (Progressive
Development Corp. v. Sec. of Labor, 242 SCRA 99).
On UNION REGISTRATION, the Supreme Court pointed out that

the requirements afford a MEASURE OF PROTECTION to
UNSUSPECTING EMPLOYEES who may be lured into joining
UNSCRUPULOUS FLY-BY-NIGHT UNIONS whose sole purpose is TO
CONTROL UNION DUES or USE the labor organization for ILLEGAL
ENDS. (Progressive Development Corp. v. Laguesma, 271 SCRA 593).
Applications for registration are filed with the LABOR

RELATIONS DIVISION of the DOLE Regional Office or with the Bureau of
Labor Relations. In the case of government employees’ organizations, in
addition to such registration, they shall also register with the Civil Service
Commission. Upon approval, their corresponding registration
certificates are signed jointly by the Chairman of the CSC and the
Secretary of Labor and Employment.
ACTION ON THE APPLICATION
1. within THIRTY (30) DAYS from filing, approval or denial;

2. in case of denial, the applicant may APPEAL to the BLR the
decision by the Regional Office or to the Secretary if the denial
is by the BLR, within TEN (10) CALENDAR DAYS from receipt
of the decision on grounds of (a) grave abuse of discretion
and/or (b) gross incompetence. The appeal shall be filed in the
Regional Office or BLR, as the case may be, which shall cause
the transmittal of the corresponding records to the BLR or
Secretary within FIVE (5) CALENDAR DAYS from receipt of the
appeal.
3. The BLR or the Secretary shall decide the appeal within
TWENTY (20) CALENDAR DAYS from receipt of the records of
the case. Their decision shall be FINAL AND NO LONGER
APPEALABLE. (Art. 235, 236, LC)
THE BARGAINING UNIT (BU)
One of the requirements for registration of a labor organization is

that the application should be supported by AT LEAST 20% of ALL the
MEMBERS of the BARGAINING UNIT.
The term “BARGAINING UNIT”, as defined by the Supreme Court,

is the LEGAL COLLECTIVITY for COLLECTIVE BARGAINING
PURPOSES whose MEMBERS have SUBSTANTIALLY MUTUAL
BARGAINING INTERESTS in the terms and conditions of employment as
will assure to ALL EMPLOYEES the exercise of their COLLECTIVE
BARGAINING RIGHTS. (Belyca Corp. v. Ferrer Calleja, 168 SCRA 184).
Another definition is: “a group of employees of a given employer,

comprised of all or less than all of the entire body of employees, which the
COLLECTIVE INTERESTS of ALL the EMPLOYEES, consistent with
equity to the employer, indicate to be the BEST SUITED to serve the
RECIPROCAL RIGHTS and DUTIES of the parties under the collective
bargaining provisions of the law. (Rothenberg on Labor Relations, p. 482)
A UNIT, to be APPROPRIATE, must effect a GROUPING of

EMPLOYEES who have SUBSTANTIAL, MUTUAL INTEREST in WAGES,
HOURS, WORKING CONDITIONS and OTHER SUBJECTS of
COLLECTIVE BARGAINING. (Democratic Labor Association v. Cebu

Stevedoring Co., Inc., et al., G.R. No. L-10321, 28 February 1958).
FACTORS IN DETERMINING THE BARGAINING UNIT
1. the WILL of the employees (Globe Doctrine);

2. AFFINITY and UNITY of employees’ interest, such as
SIMILARITY of duties and working conditions (Substantial
Mutuality of Interests Doctrine);
3. prior collective bargaining history; and
4. employment status, positions, and categories of work.
(Employer Unit Rule)
(Democratic Labor Association v. Cebu Stevedoring Co., 103 Phil

1103)
Based on the Supreme Court Decisions, the BASIC TEST of

grouping is MUTUALITY or COMMONALITY OF INTERESTS. Apparently,
the SC favors the “SUBSTANTIAL MUTUAL INTERESTS RULE”.
The GLOBE DOCTRINE holds that the WILL of the EMPLOYEES

themselves is DECISIVE on the matter of determining their BARGAINING
UNIT where more than one form of unit is possible, such as craft or
occupational, plant-wide or industry-wide, single or multiple units. The
doctrine further holds that to ascertain the will, an election or referendum
among the employees may be held, which is known as GLOBE
ELECTION.
On the other hand, the DOLE appears to favor a different policy,

which is the EMPLOYER UNIT RULE. This policy favor larger units in the
fixing of bargaining units where the EMPLOYER UNIT is the NORMAL
ORGANIZATION at the company level, thus, discouraging fragmentation
into small craft or occupational units.
In forming the ABU, it is not the convenience or interest of the

employer but, more importantly, the interest of the employees.
The general rule is “One Company-One Union”. Exceptions: (1)

statutory exception as in the case of supervisory employees under Article
245 of the LC who can join, assist or form their own union; (2) compelling
reasons or circumstances, like substantial dissimilarities, i.e. monthly-
paid rank and file employees, daily paid rank and file employees, craft
unit, plant unit or subdivision thereof.
Article 245 of the LC ALLOWS the formation of MORE than one

union in a company, as in the case of supervisory employees who may
join, assist or form their own union. The Supreme Court held that the
“ONE COMPANY-ONE UNION POLICY” must yield to the RIGHT OF
EMPLOYEES to form unions or associations not contrary to law, to SELF-
ORGANIZATION, and to enter into COLLECTIVE BARGAINING
NEGOTIATIONS, among others, which the Constitution guarantees.
(Barbizon Phil., Inc. v. Nagkakaisang Supervisors ng BP, Inc., 262 SCRA
738).
SIGNIFICANCE OF REGISTRATION (Art. 242 LC)

Through REGISTRATION, a LABOR ORGANIZATION acquires

LEGAL PERSONALITY. By this process, it attains the status of a
legitimate labor organization, with ALL the RIGHTS and PRIVILEGES
accorded by LAW.
The OPERATIVE ACT that vests this acquisition of LEGAL

PERSONALITY is the ISSUANCE by the Bureau of Labor Relations of the
CERTIFICATE OF REGISTRATION in its name. By such registration and
issuance, the legitimate labor organization acquires the following RIGHTS:
1. To ACT as the REPRESENTATIVE of its MEMBERS for the

purpose of collective bargaining;
2. To be CERTIFIED as the EXCLUSIVE REPRESENTATIVE of
ALL the EMPLOYEES in an appropriate BARGAINING UNIT for purposes
of collective bargaining;
3. To be FURNISHED by the employer, upon written request, with
his ANNUAL AUDITED FINANCIAL STATEMENTS, including the balance
sheet and the profit and loss statement, within 30 CALENDAR DAYS from
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 60 CALENDAR DAYS
before the expiration of the existing CBA, or during the collective
bargaining negotiation;
4. To own property, real or personal, for the use and benefit of the
labor organization and its members;
5. To sue and be sued in its registered name; and
6. To undertake all other activities designed to benefit the
organization and its members, including cooperative, housing, welfare and
other projects not contrary to law.
The INCOME and PROPERTIES of legitimate labor organizations,

including GRANTS, ENDOWMENTS, GIFTS, DONATIONS and
CONTRIBUIONS from fraternal and similar organizations, local or foreign,
which are actually, directly, and exclusively used for their lawful purposes
are FREE from TAXES, DUTIES and ASSESSMENTS.
Thus, all unions are AUTHORIZED to COLLECT 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. (Art. 277 [a]
LC).
RIGHTS AND CONDITIONS OF UNION MEMBERSHIP
1. No arbitrary or excessive initiation fees shall be required nor

excessive or oppressive fines and forfeitures be imposed;
2. The members shall be entitled to full and detailed reports from
their officers and representatives of all financial transactions as provided
for in the constitution and by-laws of the organization;
3. The members shall elect their officers, including those of the
national union or federation to which their union is affiliated, by secret
ballot at intervals of five (5) years; (The purpose is to reduce inter-union
and intra-union conflicts, which are deemed pointless and counter-
productive)
4. The members shall determine by secret ballot any question of
major policy affecting the entire membership, unless the nature of the
organization or force majeure renders such secret ballot impractical, in
which case the board of directors may make the decision in behalf of the
general membership;
5. No labor organization shall knowingly admit as member or
continue in membership any individual who belongs to a subversive
organization or who is engaged directly or indirectly in any subversive
activity;
6. No person who has been convicted of a crime involving moral
turpitude shall be eligible for election as a union officer or for appointment
to any position in the union.
7. No officer, agent or member of a labor organization shall collect
any fees, dues or other contributions in its behalf or make any
disbursement of its money or funds UNLESS duly authorized by its
constitution and by-laws;
8. Every payment of fees, dues, or other contributions by a member
shall be evidenced by a receipt signed by the officer or agent making the
collection and recorded for this purpose;
9. The funds of the organization shall not be applied for any
purpose or object other than those expressly provided by its constitution
and by-laws or authorized by written resolution by the MAJORITY of the
MEMBERS at a general meeting called for the purpose.
10. Every income or revenue of the organization shall be evidenced
by a record showing its source, and every expenditure of its funds
evidenced by a receipt stating the payee, the date, place and purpose of
such payment.
11. Officers of the labor organization shall not be paid any
compensation other than the salaries and expenses due their positions, as
provided for in its constitution and by-laws, or in a written resolution
authorized by a MAJORITY of its MEMBERS at a general membership
meeting called for the purpose;
12. The TREASURER and EVERY OFFICER responsible for the
ACCOUNT of the organization shall render a true and correct account of
all monies received and paid by him, and of all bonds, securities and other
properties entrusted to his custody, at least once a year within 30 days
after the close of its fiscal year, at such other times as may be required by
resolution of the majority of the membership, and upon vacating his office;
13. The BOOKS OF ACCOUNTS and OTHER FINANCIAL
RECORDS of the organization shall be OPEN to INSPECTION to any
officer or member thereof during office hours;
14. Other than for MANDATORY ACTIVITIES under the Labor
Code, no special assessments, attorney’s fees, negotiation fees or any
other extra-ordinary fees may be checked off from any amount due an
employee without an individual written authorization duly signed by the
employee.
15. Finally, it shall be the duty of union to inform its members on its
constitution and by-laws, the CBA, the prevailing labor relations system,
and all their rights and obligations under existing labor laws.
Any VIOLATION of the above RIGHTS and CONDITIONS of union

membership is a GROUND for CANCELLATION of the REGISTRATION
of the Union or EXPULSION of an OFFICER from office, whichever is
appropriate. At least 30% or any member especially concerned may report
such violation to the BLR which has the power to hear and decide any
such violation and mete the appropriate violation.
Under labor relations (RA 6715), EMPLOYEES are CLASSIFIED into

THREE (3) GROUPS: (1) Managerial employees; (2) Supervisory
employees; and (3) Rank and file employees.
WHO CAN JOIN LABOR UNIONS?
The following are eligible to JOIN, ASSIST or FORM labor

organizations:
1. Rank-and-file employees, whether employed for a definite period or

not, beginning on their first day of service; (Art. 277, LC)
2. Government employees in the civil service, EXCEPT (1) high-level
employees whose functions are policy-making, managerial or
highly confidential in nature; (2) members of the AFP, including
police officers, policemen, firemen and jail guards;
3. Employees of government corporations established under the
Corporation Code;
4. Supervisory employees cannot join labor unions of rank-and-file
employees, but may form, assist or join labor organizations of their
own. Bank managers, controllers and cashiers are not managerial
employees, but supervisory employees (Republic Planters Bank
Supervisors Chapter v. Torres, 239 SCRA 546).
5. Security personnel who are employees in relation to establishment
of their employer;
6. Aliens working in this country with valid employment permit, if they
are nationals of a country which grants the same or similar right to
Filipino workers (Art. 269, LC; principle of reciprocity). The law
allows them to join or assist (BUT NOT TO FORM) a labor
organization of their own choosing for purposes of collective
bargaining.
WHO CANNOT JOIN LABOR UNIONS?
The following are not eligible to JOIN, ASSIST or FORM any labor
organization:
1. Managerial employees – those 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. They are distinguished from
supervisory employees 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. (Art. 212 [m],
LC);
Thus, where such recommendatory powers are subject to

evaluation, review and final action by the department heads and
other higher executives of the company, the same, although
present, are not effective and not an exercise of independent
judgment as required by law. (Franklin Baker Co. v. Trajano, 157
SCRA 417).
It is NATURE of the employee’s FUNCTIONS, and not the

nomenclature or title given to his job, which determines whether he
has rank-and-file, supervisory or managerial status. (NATO v.
Torres, 239 SCRA 546; Samson v. NLRC, et al., 330 SCRA 460).
Among maritime employees, the major patron, minor patron,

chief mate, and chief engineer are DEEMED managerial
employees vested with powers or prerogatives to lay down and
execute managerial policies. The exercise of discretion and
judgment in directing a ship’s course is as much managerial in
nature as decisions arrived at in the confines of the more
conventional board room or executive office. (Association of Marine
Officers and Seamen v. Laguesma, 239 SCRA 460).
The reason for the exclusion is two-fold: (1) to avoid conflict

of interest situation, considering their character as representatives
of the employer; and (2) to avoid the risk of the union becoming a
company union.
2. Subversives or members of subversive organizations;

3. Employees of cooperatives who are at the same time members
thereof. This is so because members of a cooperative are deemed
owners of such cooperative, and owners cannot bargain with
themselves nor with their co-owners. (San Jose City Electric
Cooperative v. Minister of Labor, 173 SCRA 697; Benguet Electric
Cooperative v. Ferrer Calleja, 180 SCRA 740.
But this exclusion does not apply to employees of
cooperatives who are not members or co-owners thereof.
(Cooperative Rural Bank of Davao City v. Ferrer Calleja, 165
SCRA 725).
4. Employees who may be excluded by a CBA which classifies union

and non-union members – for instance a CBA may stipulate
exclusion of certain employees such as accounting personnel,
radio and telegraph operators, which due to their access to
CONFIDENTIAL INFORMATION may be a source of UNDUE
ADVANTAGE to the union. (Golden Farms v. Ferrer Calleja, 175
SCRA 471). Further, on this point, SECRETARIES are
CONFIDENTIAL EMPLOYEES. By the very nature of their
functions, they assist and act in a confidential capacity to, or have
access to confidential matters of, persons who exercise managerial
functions. The rationale behind the ineligibility of managerial
employees to join unions equally applies to them. (Philips Industrial
Development v. NLRC, 210 SCRA 339). This is known as the
“DOCTRINE OF NECESSARY IMPLICATION”, which holds that
what is implied in a statute is as much a part thereof as that which
is expressed. (Bulletin Publishing Corp. v. Sanchez, 144 SCRA
628; Golden Farms v. Ferrer Calleja, 175 SCRA 471).
The “CONFIDENTIAL EMPLOYEE RULE” excludes from the

bargaining units of employees who, in the normal course of their
duties, become aware of management policies relating to labor
relations. Its broad rationale is that employees should not be placed
in a position involving a potential conflict of interests. Management
should not be required to handle labor relation matter through
employees who are represented by the union with which the
company is required to deal, and who in the normal performance of
their duties may obtain information of the company’s position with
regard to contract negotiations, the disposition of grievances, or
other labor relations matters. Hence, an employee may NOT be
EXCLUDED from an appropriate bargaining unit MERELY because
he has ACCESS to CONFIDENTIAL INFORMATION concerning
the employer’s INTERNAL BUSINESS OPERATIONS and WHICH

IS NOT RELATED TO THE FIELD OF LABOR RELATIONS. (San
Miguel Corp. Supervisors v. Laguesma, et al., 277 SCRA 370).
CANCELLATION OF UNION REGISTRATION
The GROUNDS are:
1. Misrepresentation, false statements or fraud in connection with the

adoption or ratification of the union’s CONSTITUTION and BY-
LAWS, or in connection with the ELECTION of its OFFICERS;
2. Failure to submit required documents within the period prescribed
by law;
3. Acting as a LABOR CONTRACTOR or engaging in the “cabo”
system, or otherwise engaging in activity prohibited by law;
4. Entering into COLLECTIVE BARGAINING AGREEMENTS with
terms and conditions of employment BELOW the minimum
standards established by law (“SWEETHEART CONTRACTS);
5. Asking for or accepting attorney’s fees or negotiation fees from
employers (also a ULP);
6. Other than for mandatory activities under the Labor Code, checking
off special assessments or any other fees without duly signed
individual written authorizations of its members;
The Regional Office or BLR shall serve notice of the cancellation

proceedings on the union concerned stating the grounds for cancellation
at least 15 CALENDAR DAYS before the scheduled date of hearing. In
such hearing, the union representative shall have the right to present its
side. The union may, within 15 CALENDAR DAYS from receipt of the
decision, appeal to the Bureau or Secretary, as the case may be, on the
grounds of GRAVE ABUSE OF DISCRETION and/or GROSS
INCOMPETENCE.
The BLR or Secretary shall have 15 CALENDAR DAYS within which to

decide the appeal. The decision shall be FINAL and UNAPPEALABLE.
UNFAIR LABOR PRACTICES (ULPs)
Concept – ULPs VIOLATE the CONSTITUTIONAL RIGHT of workers and

employees to SELF-ORGANIZATION, are INIMICAL to the LEGITIMATE
INTERESTS of BOTH labor and management, including their RIGHT TO
BARGAIN COLLECTIVELY and otherwise deal with each other in an
atmosphere of freedom and mutual respect, disrupt INDUSTRIAL PEACE,
and hinder the promotion of healthy and stable labor-management
relations.
Consequently, ULPs are (1) violations of the CIVIL RIGHTS of both

labor and management, and (2) also CRIMINAL OFFENSES against the
State, which shall be subject to prosecution and punishment. (Art. 247,
LC).
RELIEFS AVAILABLE
1. The CIVIL ASPECTS of all cases involving ULP, which may include
claims for actual, moral, exemplary and other forms of damages,
attorney’s fees and other affirmative relief are under the

JURISDICTION of LABOR ARBITERS, subject to the provisions of
Arts. 263 and 262. Recovery of CIVIL LIABILITY in the
administrative proceedings will BAR recovery under the Civil Code.
(Art. 247, LC).
2. The CRIMINAL ASPECT of ULP is under the jurisdiction of the
proper court. But the criminal prosecution may be instituted only
after a FINAL JUDGMENT is obtained in the administrative
proceeding finding a ULP was committed. During the pendency of
such proceeding, the running of the prescriptive period of the
criminal offense shall be considered as interrupted. The FINAL
JUDGMENT in the administrative proceedings shall NOT be
BINDING in the CRIMINAL CASE nor be considered as EVIDENCE
of GUILT, but MERELY as PROOF of COMPLIANCE with
procedural requirements.
In view of the DUAL NATURE OF ULP cases, the AVENUES of

RELIEF available are: (1) PREVENTIVE – through a CEASE and DESIST
ORDER to stop a party from engaging further in ULP acts; (2) REMEDIAL
– consisting of affirmative reliefs such as reinstatement, damages,
attorney’s fees, etc.; and (3) PENAL – such as fine or imprisonment, or
both.
Civil aspects of all cases involving ULPs, including claims for damages
and other affirmative reliefs are within the JURISDICTION of LABOR
ARBITERS. (National Union of Bank Employees v. Lazaro, 157 SCRA
123).
Labor Arbiters are required to give utmost priority to hearing and

resolution of cases involving ULP. They are bound to resolve such cases
within 30 CALENDAY DAYS from the time they are submitted for
resolution. (Art. 247, LC).
The Labor Code specifies the ACTS that constitute (1) ULPs of
EMPLOYERS (Art. 248, LC); and (2) ULPs of LABOR ORGANIZATIONS
(Art. 249, LC).
ULP ACTS EXCLUSIVE TO EMPLOYERS
1. To interfere with . . . employees in the exercise of their right to self-

organization (Art. 248 [a], LC);
Outright and unconcealed intimidation is the most obvious form of

interference. Other forms of interference are espionage or
surveillance of union activities, questioning employees on union
membership, threats and the offering of bribes.
2. “YELLOW-DOG” CONTRACTS – to require as a condition for

employment that a person or employee shall not join a labor
organization or shall withdraw from one to which he belongs; (Art.
248 [b], LC);
Such contracts are given this deprecatory name to signify that

adherence thereto is an act of a cowardly dog, viz. a “yellow dog.”
3. To CONTRACT OUT services or functions being performed by

union members when such will interfere with, restrain or coerce
employees in the exercise of their rights to self-organization (Art.

248 [c], LC);
Labor-only contracting is contrary to public policy and is

prohibited. If done to dissuade workers from exercising their right to
self-organization, it also constitutes a ULP.
4. Company union – to initiate, dominate, assist or otherwise interfere

with the formation or administration of any labor organization,
including the giving of financial or other support to ir or its
organizers or supporters (Art. 248 [d], LC);
A company union is incompatible with the workers’ rights to

self-organization and collective bargaining, both of which would
be rendered meaningless if the union were dominated by the
employer.
ULP ACTS EXCLUSIVE TO LABOR ORGANIZATIONS
1. “FEATHERBEDDING” – to cause or attempt to cause an employer

to pay or deliver or agree to pay or deliver any money or other
things of value, in the nature of an exaction, for services which are
not performed or not to be performed, including the demand for a
fee for union negotiations. (Art. 249 [d], LC)
A QUALIFIED ULP; VIOLATION OF A CBA
Arts. 248 and 249 of LC impute as ULP for either party to violate
the CBA. However, this is QUALIFIED because VIOLATIONS of a CBA is
no longer treated as ULP but GRIEVANCES to be resolved under the
grievance machinery of the CBA, EXCEPT those violations which are
GROSS in CHARACTER. A GROSS VIOLATION of the CBA means
FLAGRANT and/or MALICIOUS REFUSAL to comply with the
ECONOMIC PROVISIONS of the CBA.
Thus, charges of CBA violation are to be resolved through the

GRIEVANCE MACHINERY of the CBA and, if still unresolved, to
VOLUNTARY ARBITRATION. Only those CBA violations deemed GROSS
by definition fall within the JURISDICTION of the LABOR ARBITERS and
the NLRC.
The purpose of this change or qualification is to remove ULP cases

from the compulsory arbitration process and to course them instead to the
voluntary mode. This is in keeping with express preference of the
Constitution for voluntary modes in the resolution of industrial disputes.
(Art. III, Sec. 3, Constitution).
UNION RULES AND SECURITY CLAUSES
The Labor Code recognizes the RIGHT of a UNION to secure

agreement regarding UNION SECURITY. (Art. 248, LC) and to prescribe
its own rules with respect to acquisition or retention of membership (Art.
249 [a], LC). These acts are not considered ULPs.
Art. 248 [e] of LC provides for a “CLOSED-SHOP AGREEMENT”,

which may be defined as “an agreement whereby an employer binds
himself to hire only members of the contracting union who must continue
to remain members in good standing to keep their jobs. (PRC v. Garcia, et

al., 124 Phil. 698). The rationale of the closed-shop agreement is the
INHERENT RIGHT TO SELF-PRESERVATION of every union.
The EXCEPTION to “closed-shop agreement” pertains to

employees who are ALREADY members of ANOTHER UNION at the
signing of the CBA containing the “closed-shop agreement”. But not those
employees who are not members of any union, who may be obliged to join
the contracting union for their continued employment. (Juat v. CIR, 15
SCRA 395).
DISMISSALS AS ULPs
Dismissals of employees, per se, are not necessarily ULPs. What

characterized dismissals as ULPs is the MOTIVE behind the dismissals.
Where these are used to interfere with, restrain or coerce employees in
the exercise of their right to self-organization (Art. 248 [c], LC), or to
discriminate against an employee for having given being about to give
testimony under the law (Art. 248 [f’, LC), then such dismissals constitute
ULPs.
Hence, dismissal of laborers due to their membership in the union

constitutes ULP. (Magdalena Estate v. Kap. Ng mga Manggagawa, 9
SCRA 237). Dismissal of employees due to reduction of the company’s
dollar allocation for importation is deemed ULP where non-unionists were
not similarly dismissed, and new employees were hired thereafter. (Manila
Pencil Co. v. CIR, 14 SCRA 955). And refusal to admit striking employees
not because of business exigency, but due to a desire to discourage union
activities is ULP on the part of the employer. (Consolidate Labor Assn. v.
Marsman & Co., 11 SCRA 589).
In recent rulings, although the cause of dismissal may be one

provided by law, the MANNER in which this is exercised, if tainted with
ABUSE OF DISCRETION, may constitute ULP, as in the case of
RETRENCHMENT where ALL the employees terminated belonged to one
union. (BASECO v. NLRC, 161 SCRA 271), or where the company was
not incurring losses but enjoying substantial earnings. (People’s Bank &
Trust Co. v. PBTCU, 69 SCRA 10).
This COERCIVE ELEMENT is what distinguishes ULP cases from

actions for illegal dismissal. The issue DIFFERS in the two proceedings. In
a ULP case, it is whether the dismissal is characterized by the MOTIVE of
the employer to discourage union activities or interfere with right of the
workers to self-organization and/or collective bargaining; while in illegal
dismissal, the issue is whether the employee was dismissed under the
conditions prescribed by law, i.e. for just or authorized cause and after due
process.
ULPs involving dismissals and illegal dismissals BOTH constitute

illegal termination of employment. Both cases are subject to the SAME
reliefs, with similar effect, namely, reinstatement without loss of seniority
rights and privileges, separation pay where reinstatement is no longer
feasible, full backwages, and in proper cases, damages and attorney’s
fees. However, ULP is evidently the more serious charge because it
involves criminal liability, which illegal dismissal does not.
CRIMINAL LIABILITY IN ULP CASES

Employer – ONLY the officers and agents of corporations or

partnerships who have ACTUALLY participated in, authorized or ratified
the acts.
Labor Unions – ONLY the officers, members of the governing

boards, representatives or agents or members of the labor organizations
who have ACTUALLY participated in, authorized or ratified such acts.
CERTIFICATION ELECTION
[Determination of Exclusive Bargaining Representative]
Concept – A labor organization exists primarily for the purpose of

COLLECTIVE BARGAINING or of DEALING with the EMPLOYER
concerning TERMS and CONDITIONS of EMPLOYMENT. But for
collective bargaining to arise, there are JURISDICTIONAL PRE-
CONDITIONS: (1) status of MAJORITY REPRESENTATION by the union;
(2) proof of such majority representation; and (3) demand to bargain
collectively.
Certification election is a STATUTORY POLICY, the freedom of

choice given to the workers being a CONSTITUTIONAL RIGHT.
RATIONALE: to provide FREE CHOICE in the BARGAINING UNIT

and to assure that the union has the support of the MAJORITY; to give the
employees TRUE REPRESENTATION in their collective bargaining or
dealing with an employer.
Certification election is not a litigation, but an investigation of a non-

adversary, fact-finding character to determine the EXCLUSIVE
REPRESENTATIVE of EMPLOYEES in a BARGAINING UNIT for the
purpose of COLLECTIVE BARGAINING.
Certification election for the purpose of collective bargaining is one

of the fairest and most effective way of determining which labor
organization can truly represent the working force.
Certification election is the MOST DEMOCRATIC, EXPEDITIOUS

and EFFECTIVE METHOD by which the workers can FREELY determine
the UNION that shall act as their REPRESENTATIVE in their DEALING
with their employer.
CERTIFICATION ELECTION is different from CONSENT

ELECTION. A consent election is an agreed one, its PURPOSE being
merely to determine the ISSUE OF MAJORITY REPRESENTATION of all
workers in a bargaining unit. On the other hand, a certification election
is mandated by law in representation disputes in order to determine the
sole and exclusive bargaining agent of all employees in the bargaining
unit for the purpose of collective bargaining.
Consent election is a separate and distinct process and has

nothing to do with the import and effect of certification election, although it
does not preclude workers from exercising their right to choose their sole
and exclusive bargaining representative within the freedom period.
Certification election should not likewise be confused with GLOBE

ELECTION, which is a referendum among employees to determine their
WILL on the MATTER of their BARGAINING UNIT.
OTHER MODES OF ACQUIRING MAJORITY REPRESENTATION
Certification election is the PRIMARY MODE of acquiring majority

representation or majority status by a labor union.
Unlike the old law, the present law, however, is SILENT on OTHER
MODES of acquiring majority status by a labor union, such as
VOLUNTARY RECOGNITION by the employer, and the MANDATORY
DIRECT CERTIFICATION PROCEEDING.
There is NO specific provision on voluntary recognition in the

Labor Code. Nevertheless, it is IMPLIED from the phraseology of Art. 258
which uses the permissive word “MAY” for an employer to petition the BLR
for an election when requested to bargain collectively. This suggest that if
the employer does not wish to petition for an election, it shall reply to the
request within ten (10) calendar days from receipt thereof, thus setting in
motion the procedure for collective bargaining. Impliedly, therefore, the
union is voluntary recognized for collective bargaining.
The implication is corroborated in Art. 263 on strikes and lockouts,

which provides, among others, that “in cases of bargaining deadlocks, the
duly certified or RECOGNIZED bargaining agent may file a notice of
strike” and “In cases of unfair labor practice, in the absence of a duly
certified or RECOGNIZED bargaining agent, the notice of strike may be
filed by any legitimate organization in behalf of its members.”
The certification election is still applicable even if there is only one

union in an establishment. In such a case, there is CHOICE between
THAT UNION or NO UNION. (George & Peter Lines v. Asso. Labor Union,
134 SCRA 82).
As to DIRECT CERTIFICATION, the Supreme Court in one case

expressed the view that “direct certification has APPARENTLY been
discontinued,” without, however, making a definitive pronouncement. The
Supreme Court simply continued that “at any rate, the amendment affirms
the SUPERIORITY of CERTIFICATION ELECTION.” (NAPTU v. BLR, 164
SCRA 12).
EMPLOYER INTERVENTION: CONTRACT BAR RULE
Generally, employers may not intervene in certification election,

which is an EXCLUSIVELY EMPLOYEE PROCEEDING. In the
certification election, the employer is a BY-STANDER and adopts a
HANDS-OFF POLICY. Employers have no legal personality to get in
certification election EXCEPT where the CONTRACT BAR RULE applies.
The CONTRACT BAR RULE is a rule that a valid and existing CBA
is a BAR to petition for certification election. Hence, an employer may
successfully oppose a petition for certification election if it violates this
Rule.
EXCEPTIONS TO CONTRACT BAR RULE
1. If the petition is filed within the “FREEDOM PERIOD”, that is 60

days BEFORE the expiration of the CBA;
2. If the CBA is DEFECTIVE or INADEQUATE in SUBSTANCE, as
where it does not fulfill the legal requirements of providing for a
grievance machinery or voluntary arbitration; and
3. If the CBA has not fulfilled the formal requirements for registration
with the BLR or the Regional Office of the DOLE, which
requirements are held to be mandatory. (Asso. Trade Union v.
Trajano, 162 SCRA 318).
NO CERTIFICATION ELECTION MAY BE HELD IN THE FOLLOWING

CASES:
1. During the existence of a CBA, except within the freedom period;

(Contract Bar Rule, Art. 232)
2. Within one year from the date of issuance of a final certification
result;
3. Where a bargaining deadlock to which an incumbent or certified
bargaining agent is a party has been submitted for conciliation or
arbitration, or has become the subject of a valid notice of strike or
lockout. This is known as the DEADLOCK BAR RULE. Its principal
purpose is to ensure stability in the relationship of workers and
management. (NACUSIP v. Trajano, 208 SCRA 18).
PETITIONS FOR CERTIFICATION ELECTION
1. In an organized establishments, where a representation issue

exists and the petition is supported by at least 25% of ALL the
employees in the bargaining unit; and
2. In unorganized establishments where there is no certified
bargaining agent, a certification election shall AUTOMATICALLY be
conducted by the med-arbiter upon the filing of a petition by a
legitimate labor organization.
“UNORGANIZED ESTABLISHMENT” – refers to BARGAINING

UNIT, not necessarily the ENTIRE COMPANY. The rank-and-file unit has
already a certified bargaining agent, thus, it is already an “organized
establishment”; but, the supervisory unit still does not have such agent,
hence, the latter is still an “unorganized establishment”.
REQUIREMENTS FOR A PETITION FOR CERTIFICATION ELECTION
In an organized establishment:
1. The petition must be verified;

2. Filed within the freedom period;
3. With the written consent of at least 25% of all the employees in the
bargaining unit.
In an unorganized establishment:
The only requirement is that the verified petition is filed by a

legitimate labor organization. The petitioner must be a UNION, not
employees. (Celine Marketing Cop. v. Laguesma, 205 SCRA 849)
NOT QUALIFIED TO PARTICIPATE IN CERTIFICATION ELECTION
1. Managerial employees;
2. Workers as to whom there is no employment relationship in the
establishment concerned, e.g. contractors and concessionaires’
agents, security guards, etc. This is so because certification
election is premises on employer-employee relationship, without
which there is not duty to bargain collectively, and there being no
such duty, certification election is pointless. (Cia. Maritima v. Allied
Free Workers Union, 19 SCRA 259).
3. Employees of a cooperative who are also members thereof. This is
so because an owner cannot bargain with himself or with his co-
owners.
FOR A VALID ELECTION, AT LEAST A MAJORITY OF ALL

ELIGIBLE VOTERS MUST HAVE CAST THEIR VOTES. The Labor
Union receiving the majority of the valid votes cast shall be certified as
the exclusive bargaining agent of all the workers in the bargaining unit.
(Double Majority Rule)
When an election which provides for THREE or MORE choices

results in NO CHOICE receiving a majority of the valid votes cast, a
RUN-OFF ELECTION shall be conducted between the labor unions
receiving the two highest number of votes, provided that the total number
of votes for all contending unions is at least 50% of the number of
votes cast. (Art. 256, LC).
Run-off election: (1) majority of all eligible voters cast their votes;
(2) the total number of votes for all contending unions is at least 50% of
the number of votes cast; and (3) “no choice” received a majority of the
valid votes cast.
POST-ELECTION.
The WINNING UNION in certification election has the RIGHT to be

certified as the SOLE and EXCLUSIVE BARGAINING AGENT of ALL the
workers in the bargaining unit for the purpose of collective bargaining.
The LOSING UNION(S) shall continue to enjoy the rights of

legitimate labor organizations, EXCEPT the right to represent the
employees in collective bargaining with the employer.
II. RIGHT TO COLLECTIVE BARGAINING NEGOTIATION
This is a corollary right to the right to self-organization. It implies the

EXISTENCE of a LABOR ORGANIZATION, and indicates its ROLE in
fostering INDUSTRIAL PEACE.
With this companion right, the workers are empowered to negotiate

with the employer on the same level and with more persuasion than if they
were to bargain individually and independently for the betterment of their
respective conditions.
The terms “COLLECTIVE BARGAINING” and “NEGOTIATION” are

often used interchangeably. Technically, collective bargaining normally
takes the form of negotiation when MAJOR CONDITIONS of employment
to be written into the agreement are under consideration, and of grievance
committee meetings and arbitration when questions arising from the
administration of an agreement are at stake.
The term “COLLECTIVE BARGAINING” may be defined as

BARGAINING by a LABOR ORGANIZATION, in behalf of its members,
with the EMPLOYER regarding the TERMS and CONDITION of
EMPLOYMENT. It denotes NEGOTIATIONS looking toward a
COLLECTIVE BARGAINING AGREEMENT. (Pambusco v. Pambusco
Employees’ Union, 102 Phil. 789).
PARTIES TO COLLECTIVE BARGAINING: (1) Labor organization

CERTIFIED as EXCLUSIVE BARGAINING AGENT; and (2) Employer.
It is intended to promote a FRIENDLY DIALOGUE between labor

and management as a MEANS of maintaining INDUSTRIAL PEACE.
(Republic Savings Bank v. CIR, 21 SCRA 226).
This right is also applicable to government employees in the civil

service, but with certain restrictions. Thus, terms and conditions of
employment, or improvements thereof; EXCEPT THOSE THAT ARE
FIXED BY LAW, may be the subject of negotiations between duly
recognized employees organizations and appropriate government
authorities. (Sec. 13, E.O. 180). Obviously, terms and conditions fixed by
law cannot be changed by negotiation.
DUTY TO BARGAIN COLLECTIVELY
The LAW imposes upon the parties the DUTY to bargain

collectively, and VIOLATION of this DUTY on either party constitutes ULP,
if it is GROSS in CHARACTER. Violations which are not deemed gross in
character are treated as GRIEVANCES subject to grievance machinery or,
if remained unresolved, to voluntary arbitration.
The duty to bargain collectively means the performance of a

MUTUAL OBLIGATION to meet and convene promptly and expeditiously
in good faith for the purpose of negotiating an agreement with respect to
wages, hours of work, and all other terms and conditions of employment,
including proposals for adjusting any grievances or questions arising
under such agreement, and executing a contract incorporating such
agreements if requested by either party, but such duty DOES NOT
COMPEL any party TO AGREE to a or PROPOSAL or MAKE any
CONCESSION. (Art. 252, LC).
When THERE IS COLLECTIVE AGREEMENT, the DUTY to

bargain collectively shall also mean that NEITHER PARTY shall terminate
nor modify such agreement DURING its lifetime. However, EITHER
PARTY can serve a written notice to terminate or modify the agreement AT
LEAST 60 DAYS PRIOR TO ITS EXPIRATION DATE. 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 DURING the 60-day period and/or UNTIL a NEW
AGREEMENT is reached by the parties. (Art. 253, LC). (Principle of

Automatic Renewal until a CBA is reached.)
PROCEDURE IN COLLECTIVE BARGAINING
1. A party desiring to negotiate an agreement must serve a WRITTEN

NOTICE upon the other party with a statement of its proposals.
2. The other party shall make a REPLY not later than TEN (10)
calendar days from receipt of such notice.
3. Should there be DIFFERENCES on the basis of such notice and
reply, EITHER PARTY may REQUEST for a CONFERENCE which
shall begin not later than TEN (10) calendar days from date of
request.
4. If DISPUTE is NOT settled, the NCMB shall INTERVENE upon
REQUEST of EITHER PARTY or BOTH PARTIES, OR at the
INITIATIVE OF NCMB.
5. During the CONCILIATION PROCEEDINGS, the PARTIES are
PROHIBITED from doing any act which may disrupt or impede the
early settlement of the dispute.
6. The NCMB shall exert all efforts to settle disputes amicably and
encourage the parties to submit their case to a VOLUNTARY
ARBITRATION.
[notice, reply, conference, conciliation by NCMB, and voluntary arbitration

or compulsory arbitration]
CONTENT REQUIREMENTS OF CBA
1. The CBA must be complete in substance, i.e. rates of pay, wages,

hours of work, provisions that ensure mutual observance of its terms and
conditions, grievance procedure arising from the interpretation or
implementation of the CBA and company personnel policies, voluntary
arbitration procedure.
The CBA must be COMPLETE in SUBSTANCE, that is, it must

provide PERTINENT terms and conditions of employment. Where the
agreement does NOT touch SUBSTANTIALLY on the RATES OF PAY,
WAGES, HOURS OF EMPLOYMENT, but MERELY establishes a
GRIEVANCE PROCEDURE for some employees, it is INCOMPLETE and
is NO BAR to certification election. (Buklod ng Saulog Transit v. Casalla,
99 Phil. 16).
2. The CBA are subject to labor laws. (Art. 1700, Civil Code). It must not
be contrary to law, moral, good customs, public order, or public policy. (Art.
1306, CC).
The CIVIL CODE also subjects CBAs to a CONDITION that “the

relations between capital and labor are not merely contractual. They are
so impressed with public interest that they must yield to the public
good. Therefore, such contracts are subject to special laws on labor
unions, collective bargaining, strikes and lockouts.” (Art. 1700, Civil Code).
This means that CBAs which are LABOR CONTRACTS are subject to
LABOR LAWS.
UNION SECURITY CLAUSES IN CBAs

Union security clauses are not mandated to be incorporated in the

CBA, but they are ALLOWED by LAW. The most common union
security clauses are:
1. Agency Fee – this is now a statutory right of a bargaining

union whereby employees of a bargaining unit who are not members of
the collective bargaining agent may be assessed a REASONABLE FEE
equivalent to the DUES and OTHER DUES paid by members of the
bargaining agent, if such non-union members ACCEPT the BENEFITS
under the CBA. The agency fee payable by a non-union employee is
LIMITED to reasonable fee equivalent to the dues and other dues paid by
union members, but NOT to special assessments, attorney’s fees, or other
extra-ordinary fees. (Art. 248 [e], LC).
A worker is subject to agency fee even IN THE ABSENCE OF AN

AGENCY FEE CLAUSE if the following requisites are present: (1) he is a
member of the bargaining unit as a rank-and-file employee; (2) he avails
of the benefits of the existing CBA; and (3) he is not a member of any
union.
The BASIS of the AGENCY FEE is that the non-union employees

are enjoying the benefits of the CBA, which was obtained by the union,
without providing financial or other support to the union. (Principle of
unjust enrichment, apart from statutory right).
In one case, the Supreme Court held that union’s right to agency
fee is neither contractual nor statutory, but QUASI-CONTRACTUAL,
deriving from the established principle that non-union employees may not
unjustly nor unjustly enrich themselves by benefiting from employment
conditions negotiated by the bargaining union. (Holy Cross of Davao
College, Inc. v. Joaquin, 263 SCRA 358).
2. Closed Shop – a form of union security whereby ONLY UNION

MEMBERS can be HIRED, and the workers MUST remain union
members as a CONDITION of CONTINUED employment. (Union
membership as a condition for hiring and tenure of employment). It is
regarded as the MOST PRIZED ACHIEVEMENT of UNIONISM, because
by holding out to LOYAL MEMBERS a promise of employment in the
closed shop, the bargaining union wields GROUP SOLIDARITY.
The closed shop clause applies to OLD EMPLOYEES who are

NON-MEMBERS of ANY UNION at the time the CBA was entered into. It
does NOT apply, however, to EMPLOYEES who are ALREADY members
of ANOTHER UNION at the time of the signing of the CBA. (Art. 248 [c],
LC).
BASIS for Closed Shop – INHERENT RIGHT of the UNION to

SELF-PRESERVATION and CONTINUED EXISTENCE.
3. Union Shop – a form of union security which is but one step less
complete than a closed-shop. (Union membership as a condition for
continued employment). Unlike a closed-shop, a union shop agreement
does NOT require union membership as condition for hiring and continued
employment, but requires that THOSE ALREADY HIRED become UNION
MEMBERS within a PRESCRIBED PERIOD of time after hiring, or after
the effective date of the contract where the union shop agreement
succeeds the hiring in point of time. (Rothenberg on Labor Relations).
While the Labor Code provides exception to the application of

closed-shop agreement (Art. 248 [e]), it is SILENT on exception to union-
shop agreement. Nevertheless since union-shop stipulation is lower in
degree to closed-shop agreement, the exception to the latter would
necessarily apply to the former. Moreover, jurisprudence on this point
favors a PROSPECTIVE, rather than a retroactive application. Thus, the
union-shop agreement does NOT affect the right of the company to retain
those already working ON or BEFORE the signing of the agreement, or
those hired or employed SUBSEQUENT thereto where they were
members of said union, but thereafter resigned or were expelled
therefrom.
4. Maintenance of Membership Clause – requires UNION

MEMBERSHIP IN GOOD STANDING in the contracting union as a
CONDITION of CONTINUED EMPLOYMENT.
The current doctrine on this point is that such stipulations (closed-

shop, union-shop, maintenance of membership clause) are to be
RESTRICTIVELY interpreted against dismissals procured by the union for
failure to join its membership or to maintain the same. (Confed. Sons of
Labor v. Anakan Lumber Co., 107 Phil. 915). The stipulation must be so
clear as to leave no doubt thereon; it must be explicitly stated and cannot
be implied. The right to dismiss under this clause must be clear,
categorical and express. An undertaking of this nature is so harsh that it
must be strictly construed, and doubts thereon must be resolved against
the existence of the right to dismiss. (Manila Cordage Co. v. CIR, 78
SCRA 389).
SEEMINGLY, the current thrust of jurisprudence is that the MERE

INVOCATION of any of the union security clauses for the dismissal of an
employee will not result to AUTOMATIC DISMISSAL, but the employer
MUST still EVALUATE and APPROVE the dismissal in order to give FULL
meaning to the constitutional mandates on FULL protection to labor and
social justice, apart from its reciprocal right to interpret the same under its
CBA with the contracting union. The worker must not only be protected
from the tyranny of the employer but more so from the tyranny of the
contracting union.
Necessarily, the mere invocation does not prevent the employer

from looking at the FACTS and EVIDENCE used by the Union in invoking
the union security clause under the CBA for which it is also a party.
DISMISSAL UNDER UNION SECURITY CLAUSE
Despite a closed shop provision in the CBA, LAW and

JURISPRUDENCE imposed upon the EMPLOYER to accord the expelled
union member SUBSTANTIVE and PROCEDURAL due process before
complying with the UNION’s demand to dismiss him from his employment.
(See General Milling Corp. v. Ernesto Casio, et al., G.R. 149552, 10
March 2010).
Requisites for terminating an employee based on the union security

clause: (1) the union security clause is applicable; (2) the union is
requesting for the enforcement for the enforcement of the union security
provision in the CBA; and (3) there is SUFFICIENT EVIDENCE to support
the decision of the union to expel the employee from the union. These
REQUISITES constitute the JUST CAUSE for terminating an employee

based on the union security provision of the CBA.
Moreover, the employer must accord the expelled union member

procedural due process, i.e. notice and hearing, prior to the termination of
employment.
SCOPE OF UNION SECURITY CLAUSES
1. Generally applicable to ALL rank-and-file employees in the

BARGAINING UNIT;
2. The union security clauses do not apply to: (1) employees already
in the service and already members of another union(s) at the time
of the signing of the CBA (Art. 248 [e], LC); (2) managerial
employees, as well as supervisory employees, who are not eligible
to join rank-and-file unions (Art. 245, LC); (3) employees of a
cooperative who are also members thereof (Cooperative Rural
Bank of Davao v. Ferrer Calleja, 165 SCRA 725); (4) employees
excluded from the security provisions by express terms of the
agreement. (i.e. accounting personnel and radio telegraph
operators as their access to confidential information may be the
source of undue advantage; Golden Farms v. Ferrer Calleja, 175
SCRA 471); (5) members of religious sects who are prohibited from
joining unions. (RA No. 3350). In case of conflict, contractual rights
must yield to FREEDOM OF RELIGION. (Anusencion v. NLU, 80
SCRA 350).
For this purpose, SEASONAL WORKERS who are rehired

over successive seasons are deemed OLD, and not new
employees, for upon the end of each season, their employment is
NOT deemed terminated but only SUSPENDED, and they are
considered ON LEAVE OF ABSENCE without pay. (ICAWO v. CIR,
16 SCRA 562; Visayan Stevedore Trans. Co. v. CIR, 19 SCRA
426).
INTERPRETATION OF CBAs
The rule of construction in Art. 4 of the Labor Code, whereby “all

doubts in implementation and interpretation of this Code and its
implementing rules,” does NOT apply to CBAs. The CBA, being a
contract, the rules of the Civil Code on interpretation of contracts should
apply. (Marcopper Mining Corp. v. NLRC, 200 SCRA 167).
By its language, the Labor Code’s rule on construction of labor is

RESTRICTED to the provisions of the Labor Code and its implementing
rules and regulations. More pertinent is the Civil Code’s rule on the
interpretation of labor contracts which provides that “[i]n case of doubt, all
labor legislation and all labor contracts shall be construed in favor of the
SAFETY and DECENT LIVING of the laborer. (Art. 1702, CC; Insular
Lumber Co. v. CA, et al., 80 SCRA 28). Thus, it is the SAFETY and
DECENT LIVING that must be favored but NOT labor COLLECTIVELY as
a social institution.
Contractual rights and duties, such as those arising from CBA’s are
VOLUNTARILY stipulated in GOOD FAITH and constitute the LAW
between the parties. The CBA is not an ordinary contract nor merely
contractual in nature, but impressed with public interest that it must yield
to the common good. As such, it must be construed LIBERALLY rather
than narrowly and technically, and the courts must place a PRACTICAL
and REALISTIC construction upon it, giving due consideration to the
CONTEXT in which it is negotiated, and the PURPOSE which it is
intended to serve. (Davao Integrated Port Services v. Abarquez, 220
SCRA 197, 204).
The BENEFITS of a CBA are EXTENDIBLE to ALL EMPLOYEES,

regardless of their membership in the CONTRACTING UNION, because
to withhold the same from NON-MEMBERS thereof would be to
DISCRIMINATE against them. (Nat’l. Brewery & Allied Industries Labor
Union v. San Miguel Brewer, 8 SCRA 805; San Miguel Corp. v. Sec. of
Labor, 75 SCRA 159).
TERM OF CBAs
1. Representation aspect – Insofar as the representation aspect of

the CBA is concerned, the CBA is for a term of FIVE (5) YEARS.
The “representation” refers to the IDENTITY and MAJORITY

STATUS of the union that negotiated the CBA as the exclusive
bargaining representative of the bargaining unit concerned.
Thus, petition questioning the majority status of the

incumbent bargaining is NOT entertained, nor a certification
election is conducted outside the 60-day period immediately
BEFORE the EXPIRY DATE of the CBA.
In other words, the representation issue may ONLY be

questioned during the FREEDOM PERIOD or the 60-day period
before the expiry date of the CBA.
2. All other provisions of the CBA – (Economic or non-economic

provisions) is for a term of THREE (3) YEARS.
All other provisions or the rest of the CBA, economic as well

as non-economic provisions shall be RENOGIATED not later than
three (3) years after its execution.
Any agreement on such other provisions entered into
WITHIN SIX (6) MONTHS from the DATE of EXPIRY of the term of
such other provisions as fixed in the CBA shall RETROACT to the
DAY immediately following such DATE. If any such agreement is
entered into BEYOND SIX (6) MONTHS, the parties shall AGREE
on the duration of the retroactivity thereof. In case of DEADLOCK
in the RENEGOTIATION of the CBA, the parties may exercise their
rights under the Labor Code. (Art. 253 [a])
The phrase “all other provisions” simply refers to “the rest of

the CBA, economic, as well as non-economic provisions, except
representation.” (SMC Employees Union v. Confesor, 262 SCRA
81).
FORMAL REQUIREMENTS OF CBA

1. Submission of copies of the CBA to BLR or the Regional Office of

DOLE for REGISTRATION within THIRTY (30) DAYS from the
execution of the CBA;
2. With verified proofs of (a) its posting in two (2) conspicuous places
in the place of work, and (b) ratification by the majority of all
workers in the bargaining unit.
[Posting, ratification and submission of CBA within 30 days from

signing thereof]
The BLR or the Regional Office shall act upon the application for
registration of the CBA within five (5) calendar days from receipt thereof.
Certification of a CBA is no longer required. The new requirement is

for SUBMISSION of copies of the CBA, under the conditions prescribed.
Even if the CBA is not registered, the same becomes effective

between the parties, whether it has been registered or not. (Liberty Flour
Mills Employees v. Liberty Flour Mills and NLRC, 180 SCRA 668).
LEGAL IMPLICATIONS OF CBAs
A CBA is a CONTRACTUAL OBLIGATION distinct from an

OBLIGATION IMPOSED BY LAW. Terms and conditions of a CBA
constitute the LAW between the parties. To deny the binding force of a
CBA would place a PREMIUM on a REFUSAL by a party thereto.
(Meycauyan College v. Drillon, 185 SCRA 50; University of the East v.
MOLE, 152 SCRA 676).
The CBA, during its lifetime, embodies the LAW between the
parties, and the same is a CONTRACT between them.
The CBA is the LAW and the CONTRACT between the parties.
In case of conflict between the provision of an INDIVIDUAL

EMPLOYMENT CONTRACT and that of the CBA, the provision of the
CBA shall be upheld and must prevail. (Superiority of CBA over
individual employment contract). (Ranises v. NLRC, et al., 262 SCRA
371).
A CBA stipulation that is CONTRARY to law, morals, good customs,

public or public policy is NUGATORY, as for instance setting a wage lower
than the minimum wage. (Manila Fashions, Inc. v. NLRC, 264 SCRA 104).
Employees cannot revoke a validly executed CBA with their

employer by the simple expedient of CHANGING THEIR BARGAINING
AGENT. The NEW AGENT would have to respect said contract. This
means that the EMPLOYEES, through their NEW BARGAINING AGENT,
cannot renege on their CBA, except to negotiate with the management for
the SHORTENING thereof. (Benguet Consolidated, Inc. v. BCI Workers
Union, 23 SCRA 465). This is known as the “SUBSTITUTIONARY
DOCTRINE” or “PRINCIPLE OF SUBSTITUTION”.
III. RIGHT TO PEACEFUL CONCERTED ACTIVITIES

The collective rights of labor are granted to create a LEVERAGE or

POSITION OF EQUALITY with the employer. It is an obvious recognition
of existing self-evident reality that workers and employer do not stand on
equal footing. To EQUALIZE the playing field, three (3) most potent
collective rights are granted to labor.
The right to self-organization and the companion right to

collective bargaining may STILL be INADEQUATE to create the position
of equality with the employer.
Thus, the need for another corollary right to self-organization as

it affords to the labor unions the potential for concerted peaceful action to
ENFORCE their DEMANDS with COERCIVE PERSUASION. That right
refers to the USE of ECONOMIC WEAPONS to PERSUADE or COERCE
compliance by the employer to the workers’ demands.
The right speaks of PEACEFUL concerted activities, while the

RIGHT TO STRIKE to be done IN ACCORDANCE WITH LAW, thus
putting specific limitation to the exercise of the right.
The term ‘CONCERTED ACTIVITIES” is defined as the activities of

TWO or MORE employees for the purpose of securing benefits or
changes in terms and conditions of employment, or for mutual aid or
protection with respect to their collective interest as employees. This
definition is BROAD that covers a WIDE RANGE of ACTS from
GRIEVANCES and REPRESENTATIONS to STRIKE.
Resolution of industrial disputes through VOLUNTARY

INITIATIVES has the advantage of simplicity, certainty and privacy.
But STRIKES and PICKETING, because of their far reaching

consequences to the economy and to the larger interest of society, are
subject to REGULATION.
The Constitution itself, in guaranteeing this right, qualifies it with the

condition that CONCERTED ACTIVITIES should be “PEACEFUL”, while
the RIGHT TO STRIKE should be exercised “IN ACCORDANCE WITH
LAW.”
The right of government employees in the civil service does NOT

include the right to strike.
While government employees have been granted GENERALLY the

right to SELF-ORGANIZATION, and QUALIFIEDLY, the right to
COLLECTIVE BARGAINING, such recognition, however, does NOT
include the RIGHT TO STRIKE. The intention of the Constitution is to limit
the right of government employees to formation of unions and
associations only, without including the right to strike. In the absence of
any express legislation allowing government employees to strike,
recognizing their right to do so, or regulating the exercise of the right,
government employees are prohibited from striking, by express provision
of Memorandum Circular No. 6, Series of 1987, and as implied in
Executive Order NO. 180. Employees in the public service may not
engage in strike, walk-outs, and temporary work stoppage like workers in
the private sector. (Bangalisan v. CA, 276 SCRA 619, 31 July 1997).
It is to be noted, however, that EMPLOYEES of GOVERNMENT-

OWNED and CONTROLLED CORPORATIONS, organized under the
Corporation Code, as well as THOSE working in ESTABLISHMENTS
whose CONTROLLING INTERESTS have been acquired by
GOVERNMENT FINANCIAL INSTITUTIONS have the SAME RIGHTS as
EMPLOYEES of PRIVATE CORPORATIONS. In the former case, because
such employees are engaged in PROPRIETARY FUNCTIONS of
government (NARIC Workers Union v. Alvendia, 107 Phil. 404) and are
NOT members of the civil service, and in the latter case, because they are
employed in ENTITIES which RETAIN their essentially PRIVATE
CHARACTER PROFIT MOTIVATION. (AGW v. Minister of Labor, 124
SCRA 1).
CONCEPTS
STRIKE – any TEMPORARY STOPPAGE of work by the

CONCERTED ACTION of employees as a result of an INDUSTRIAL or
LABOR DISPUTE. (Art. 212 [o], LC).
The STRIKE is the MOST POWERFUL ECONOMIC WEAPONS of

workers which they UNSHEATHE to FORCE management TO AGREE to
an EQUITABLE SHARING of the JOINT PRODUCT of LABOR and
CAPITAL. It is a WEAPON that can either BREATHE LIFE to or
DESTROY the UNION and its MEMBERS in their struggle with
management for a more equitable due to their labors. (Lapanday Workers
Union v. NLRC, 248 SCRA 95, 104-105, 7 September 1995).
The original Art. 265 of the LC defined the term strike as

comprising not only concerted work stoppage, but also slow downs,
mass leaves, sit-down, attempts to damage, destroy or sabotage
plant equipment and facilities, and similar activities.
On this point, the Supreme Court held that a SLOW DOWN is a

PARTIAL LIMITED or STRIKE which violates the no-strike clause of the
CBA. (Ilaw at Buklod ng Manggagawa v. NLRC, 198 SCRA 586).
LOCKOUT – the TEMPORARY REFUSAL of an employer to

furnish work as a result of an INDUSTRIAL or LABOR DISPUTE. (Art. 212
[p], LC).
A LOCKOUT differs from a SHUTDOWN in that in a LOCKOUT, the

plant continues to operate. The employee union-members locked out are
replaced by non-union substitutes and the plant continues to function. In a
SHUTDOWN, the plant ceases to operate by the willful act of the
employer himself.
A LOCKOUT is recognized as a VALID WEAPON of the employer

in collective bargaining. It is intended to bring PRESSURE upon the union
when a labor dispute has arisen. This right is INCIDENTAL to the
PROPERTY RIGHT of the employer, as he cannot be bound to furnish
work unless he has bound himself with a lawful contract. In a labor
dispute, it is undertaken as a DEFENSIVE WEAPON or in pursuance of
an employer’s interest. However, it is SUBJECT to the SAME
LIMITATIONS as a STRIKE.
PICKETING – the stationing of persons before the premises of an

establishment involved in a labor dispute, generally accompanied by the
carrying and display of signs, placards or banners stating the issues

involved in the dispute.
Picketing involves MERELY the MARCHING TO and FRO at the

PREMISES of the employer, usually accompanied by the DISPLAY of
PLACARDS and OTHER SIGNS making KNOWN the FACTS involved in
a labor dispute. (Ilaw at Buklod ng Manggagawa (IBM) v. NLRC, G.R. No.
91980, 27 June 1995).
As applied to labor dispute, TO PICKET means the stationing of

one or more persons TO OBSERVE and ATTEMPT TO OBSERVE.
Picketing is embraced in the freedom of speech guaranteed by the

Constitution. But this extends only to peaceful picketing, and not to
picketing through the use of illegal means.
STRIKE AREA – means the establishment, warehouse, depots,

plants or offices, including the sites or premises used as runaway shops,
of the employer struck against, as well as the vicinity actually used by
picketing strikers in moving to and fro before all points of entrance to and
exit from said establishment.
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-EMPLOYEE. (Art.
212 [l], LC)
NATURE OF STRIKE
A strike is the most powerful of the economic weapons of workers

which they unsheathe to force management to agree to an equitable
sharing of the joint product of labor and capital.
It is a weapon that can either breathe life to or destroy the union

and its members in their struggle with management for a more equitable
due to their labors.
The decision to declare a strike must, therefore, rests on a rational

basis, free from emotionalism, envisaged by the tempers and tantrums of
a few hotheads and finally focused on the legitimate interests of the Union
which should not, however, be antithetical to the public welfare, and to be
valid, a strike must be pursued within legal grounds.
The right to strike as a means of attainment of social justice is

never meant to oppress or destroy the employer.
(Association of Independent Unions in the Phils. v. NLRC, 305

SCRA 219, 25 March 1999).
PURPOSE AND MEANS TEST – even if the PURPOSE of the strike is

VALID, the strike may still be held ILLEGAL where the MEANS employed
is ILLEGAL. Thus, the employment of violence, intimidation, restraint or
coercion in carrying out concerted activities which are injurious to the
rights of property renders a strike ILLEGAL. And so is picketing or
obstruction to the free use of property when accompanied by

intimidations, threats, violence and coercion as to constitute a nuisance.
BASIC CHARACTERISTICS OF STRIKE
1. established existence of employer-employee relationship

between the strikers and the person or persons against whom the
strike is called;
2. existence of an industrial or labor dispute between the parties,
motivating the use of labor of this ECONOMIC WEAPON to
PERSUADE or COERCE compliance with the workers’ demands;
and
3. despite work stoppage, the employment relationship continues,
although in a state of ‘BELLIGERENT SUSPENSION.”
APPLICATION OF THESE CRITERIA
1. The so-called “strike” staged by jeepney drivers to who refused to

ply their routes in PROTEST of the HIGH PRICES of FUEL or
SPARE PARTS is NOT a STRIKE for it lacks the first two
characteristics. Instead, it is a DEMONSTRATION.
2. The so-called “strike” by workers of militant over the EXISTENCE

OF FOREIGN MILITARY BASES or other POLITICAL ISSUES is
NOT a strike.
3. The so-called “Welga Ng Bayan” is not a strike. It is a general

strike, an extended sympathy strike.
MANDATORY PROCEDURAL REQUIREMENTS FOR A VALID STRIKE

(Art. 263, LC)
1. Notice of strike (filed by duly certified or recognized bargaining

agent. In its absence, any legitimate labor organization in case of
union-busting)
a. Collective Bargaining Deadlocks – at least 30 days before

the date of the intended strike. This means 30-day
COOLING-OFF PERIOD;
b. ULP – at least 15 days. Also known as 15-day COOLING-

OFF PERIOD;
c. Dismissal of Union Officers as Union Busting – 15-day

cooling-off period does not apply. It must be noted that only
the 15-day cooling-off period is dispensed with but not the
other mandatory requirements (notice of strike, strike vote
and 7-day strike ban).
2. Strike Vote by secret ballot – Approved by (1) Majority of the total

union membership in the bargaining unit, and (2) Majority of the
Board of Directors of the corporation or association or of the
partners in a partnership. This is known as DOUBLE MAJORITY.
3. Strike Vote Results reported to DOLE/NCMB at least 7 days

before the date of the intended strike. This is known as the 7-day
strike ban.
[(1) notice of strike, (2) cooling-off period, (3) strike vote, (4) strike vote
results reported to NCMB, and (5) 7-day strike ban)
These requirements are MANDATORY and failure to comply
therewith renders the strike ILLEGAL.
RELEVANT FACTORS IN STRIKES/LOCK-OUTS
1. CAUSE – three lawful causes for strikes: (1) Bargaining

deadlocks; (2) Unfair labor practice; and (3) Union busting
involving the dismissal of union officers duly elected in accordance
with union constitution and by-laws where the existence of the
union is threatened.
2. PARTY – any CERTIFIED or duly RECOGNIZED bargaining

representative may declare a strike in cases of bargaining
deadlocks and unfair labor practices. The employer may declare
lockout in the same cases. In the absence of a certified or duly
recognized bargaining representative, ANY LEGITIMATE LABOR
ORGANIZATION in behalf of its members may declare a strike but
only on the ground of ULP.
3. NOTICE – (1) Bargaining deadlocks, notice of strike to be filed with

the regional branch of the NCMB at least 30 days before the
intended date thereof, with a copy served on the other party; (2)
ULP, the period of notice should be at least 15 days; (3) Union
Busting, the 15-day cooling-off period does not apply and the Union
may take action immediately after the strike vote is conducted and
the result thereof submitted to NCMB.
4. STRIKE/LOCKOUT VOTE - Approved by secret ballot by (1)

Majority of the total union membership; and (2) Majority of the
Board of Directors of the corporation or association or of the
partners in a partnership.
LAST-DITCH CONCILIATION EFFORTS BY DOLE/NCMB
1. Improved-offer balloting – In case of a strike, referendum by

secret balloting on the IMPROVED OFFER of the EMPLOYER
on or before the 30th day of the strike.
Approval by majority of the union members – workers to

return to work and the employer to re-admit them upon signing
the agreement.
2. Reduced-offer balloting – in case of lock-out, referendum by

secret balloting on the reduced offer of the union or before the
30th day of the lockout.
Approval by majority of the board of directors or trustees or

the partners holding the controlling interest in a partnership –
workers to return to work and the employer to re-admit them
upon signing of the agreement.
WHEN IS A STRIKE ILLEGAL?
There are at least six (6) categories of an illegal strike:
1. when it is contrary to a SPECIFIC PROHIBITION OF LAW, such as

strike by employees performing governmental functions;
2. when it violates a SPECIFIC REQUIREMENT OF LAW, such as

Art. 263 of the LC on the requisites of a valid strike;
3. when it is declared for an UNLAWFUL PURPOSE, such as

inducing the employer to commit ULP against non-union
employees;
4. when it is employs UNLAWFUL MEANS in the pursuit of its

objective, such as widespread terrorism of non-strikers (for
example, prohibited acts under Art. 264 (e), LC);
5. when it is declared in VIOLATION OF AN EXISTING INJUNCTION,

such as injunction, prohibition or order issued by the DOLE
Secretary and the NLRC under Art. 263 of the LC;
6. when it is contrary to EXISTING AGREEMENT, such as a no-strike

clause or conclusive arbitration clause;
WHAT ARE CONSIDERED ILLEGAL ACTS UNDER ART. 264 (a) of the
LC?
No precise meaning is given to the phrase “ILLEGAL ACTS”. It may

encompass a number of acts that violate existing labor or criminal laws
such as the following:
1. Violation of Art. 264 (e) of the LC which provides that “no person
engaged in picketing shall commit any act of violence, coercion or
intimidation or obstruct the free ingress to or egress from the
employer’s premises for lawful purposes, or obstruct public
thoroughfares;
2. Commission of crimes and other unlawful acts in carrying out the

strike; and
3. Violation of any order, prohibition, or injunction issued by the DOLE

Secretary or NLRC in connection with the assumption of
jurisdiction/certification Order under Art. 263 (g) of the LC.
PROHIBITED ACTIVITIES IN STRIKES AND LOCKOUTS (Art. 264, LC)
1. No strike or lockout without FIRST having bargained collectively or

without FIRST having complied with the procedural requirements
required by law;
2. No strike or lockout AFTER assumption of jurisdiction by the

President or the Secretary, or AFTER certification or submission of
the dispute to compulsory or voluntary arbitration or DURING the
pendency of cases involving SAME GROUNDS for the strike or
lockout;
3. No person shall obstruct, impede or interfere with by force,

violence, coercion, threats or intimidation any PEACEFUL
PICKETING by employees during any controversy or in the
exercise of the right to self-organization or collective bargaining
shall aid or abet such obstruction or interference;
4. No employer shall use or employ any STRIKE-BREAKER, nor shall

any person be employed as a strike-breaker;
5. No public official or employee, including officers and personnel of

the AFP or the PNP, or armed person shall bring in, introduce or
escort in any manner any individual who seeks to REPLACE
strikers in entering or leaving the premises of a strike area, or work
in place of the strikers;
6. No person engaged in picketing shall commit any act of violence,

coercion, or intimidation, or obstruct the free ingress to or egress
from the employer’s premises for lawful purposes, or obstruct
public thoroughfares.
ART. 263 (g) of the LC is MEANT to make the DOLE Secretary (or
Regional Director) and Labor Arbiters SHARE JURISDICTION, subject to
certain conditions. Neither the Labor Arbiter nor the NLRC could review
the SAME ISSUES passed upon in an ASSUMED CASE, and their
decisions to the contrary are rendered in grave abuse of discretion
amounting to excess of jurisdiction. (Reformist Union of R.B. Liner Inc. v.
NLRC, 266 SCRA 713). Art. 217 of the LC contemplates exceptions
thereto. This is evident from its opening proviso which reads “except as
otherwise provided under this Code.” (International Pharmaceuticals v.
NLRC, 205 SCRA 59).
CONSEQUENCES OF ILLEGAL STRIKES AND LOCKOUTS (ART. 264)
1. ILLEGAL LOCKOUT
Reinstatement of employees with full backwages
2. ILLEGAL STRIKE
The LAW makes a DISTINCTION between Union members and

Union Officers.
a) Union Officers – For KNOWINGLY participating in an

ILLEGAL STRIKE or KNOWINGLY PARTICIPATING in the
commission of ILLEGAL ACTS during a strike, a union
officer MAY be DECLARED to have LOST his
EMPLOYMENT STATUS, that is, he MAY be TERMINATED
from employment. The LAW grants the EMPLOYER the
OPTION of declaring a union officer who participated in an
illegal strike or committed illegal acts during a strike as
HAVING LOST HIS EMPLOYMENT STATUS. The employer
possesses the right and prerogative to terminate the union
officers from service.
b) Union Members – A worker merely participating in an

ILLEGAL STRIKE may not be terminated. It is ONLY when
he COMMITS ILLEGAL ACTS during a strike that he may be
declared to HAVE LOST HIS EMPLOYMENT STATUS.
RULE ON BACKWAGES
1. General Rule – When employees VOLUNTARILY go on STRIKE,

even if in protest against ULP, NO BACKWAGES during the strike.
2. EXCEPTIONS to NO BACKWAGES RULE:
a. When the employees are ILLEGALLY LOCKOUT to thus

compel them to strike;
b. When the employer is GUILTY of GROSS FORM OF ULP;
c. When the employer committed DISCRIMINATION in rehiring
of strikers refusing to re-admit those against whom there
were pending criminal cases while admitting non-strikers
who were also criminally charged in court;
d. When the workers who staged a voluntary ULP strike
OFFERED to return to work UNCONDITIONALLY but the
employer refused to reinstate them.
INJUNCTIONS AGAINST STRIKES AND LOCKOUTS
1. General rule – No court or entity shall enjoin any picketing, strike or

lockout, except as provided in Arts. 218 and 263 of the Code.
2. Exceptions:
Articles 218 and 263 of the LC enumerate the exceptions:
a. empower the NLRC 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 (Issuance of TRO or Writ of Preliminary
Injunction by the NLRC);
b. authorize the SOLE, when in his opinion, there exists a labor
dispute causing or likely to cause a strike or lockout
indispensable to the national interest, to assume jurisdiction
and decide it or certify the same to the NLRC for compulsory
arbitration, either of which shall have the effect of
automatically enjoining the intended or impending strike or
lockout as specified in the assumption or certification order
(Art. 263-g, LC). (Assumption of Jurisdiction Order or
Certification Order for Compulsory Arbitration issued by
the DOLE Secretary). An assumption order has the effect of
automatically enjoining the intended or impeding strike. The
order automatically carries with it a return-to-work order,
even if the directive to return to work is not expressly stated
in the assumption order. (Telefunken Conductors Employees
Union v. CA, 348 SCRA 565)
c. acknowledge the power of the President to determine the
industries that, in his opinion, are indispensable to the
national interest, and to intervene at any time and assume
jurisdiction over such labor dispute in order to settle or
terminate the same. (Assumption of Jurisdiction Order
issued by the President).
IV. RIGHT TO SECURITY OF TENURE

Tenure in employment means the right to continue in employment

until the same is terminated under conditions required by law. (Palmeria v.
NLRC, 247 SCRA 57).
V. RIGHT TO HUMANE CONDITIONS OF WORK
This collective right ensures that working conditions take into

account the HEALTH, SAFETY and WELFARE of workers. The Labor
Code is replete with provisions that address this concern, i.e. Book IV,
Title III of Book III.
Under Article 128 [c] of the Labor Code, the Secretary of Labor is
empowered to order stoppage of work or suspension of operations of an
establishment when non-compliance with the law poses grave and
imminent danger to the health and safety of workers in the workplace.
VI. RIGHT A LIVING WAGE
The right to a living wage is a NEW RIGHT granted by the

Constitution.
The term LIVING WAGE does not refer only to the worker but also
to his FAMILY, and the intent is to provide the means whereby a worker
can secure the health, decency, well being and an improved quality of life
for his family. The right is, therefore, imbued with social justice
implications.
A LIVING WAGE is not the same as a MINIMUM WAGE. A

minimum wage is the FLOOR WAGE, below which remuneration cannot
fall. Thus, it is basically a QUANTITATIVE CONCEPT which, despite all
the factors considered, may still be EQUATED with the term
“SUBSISTENCE WAGE”.
As defined in Black’s Law Dictionary, the minimum wage or

subsistence wage is “the LEAST WAGE on which an ordinary individual
can be SELF-SUSTAINING, and obtain the ordinary requirements of life.”
But a LIVING WAGE is a QUALITATIVE CONCEPT as it concerns

not only the ordinary requirements of the worker for life like food and
shelter, but also all the additional requirements of his family like education,
clothing, health care, entertainment, etc. This is intended to secure the
social end of eventually freeing the people from poverty, and providing an
improved quality of life for all. (Art. II, Sec. 9, Constitution).
VII. RIGHT TO PARTICIPATE IN POLICY AND DECISION-MAKING
The Constitutional provision does not establish this right as the

provision is not self-executory, needing a legislation or corresponding law
to establish such right.
This right is established under R.A. No. 6715, which took effect on
2 March 1989.
The right to participate in policy and decision-making does not

apply to all types of policy and decision-making of the management, but
LIMITED ONLY to those that DIRECTLY affect the rights, benefits and
welfare of the workers in an ORGANIZED ESTABLISHMENT. To
implement this participatory right, the workers and the employer may form
LABOR-MANAGEMENT COUNCIL, provided the workers’ representative
therein is elected by at least the MAJORITY of ALL employees in the said
establishment. (Sec. 22, RA 6715).
Moreover, in establishments where no legitimate labor organization exists,
labor-management committees (councils) may be formed voluntarily by
workers and employers for the PURPOSE of promoting INDUSTRIAL
PEACE. (Sec. 33 [h], RA 6715).
The specific functions of LABOR-MANAGEMENT COUNCILS

make them COMPATIBLE with those of LABOR ORGANIZATIONS.
STRIKE
1.Notice of Strike (filed by CBA/RBA or LO, in case of union busting)
2. Cooling –off period

a.) BDs-30 days before the intended date of strike
b.) ULP-15 days
c.)Union Busting (Dismissal of union affairs) – 15 day cooling-off
period does not apply. The cooling-off period is dispensed with but
the notice of strike, strike vote, reporting of strike vote results and
7-day strike ban must be complied.
3. Strike vote by secret ballot (double Majority)

a.)Majority of the total union members in the BU
b.)Majority of the BOD of corporation or BOT of Association or of
partners holding controlling interest
4.Strike Vote Results reported to NCMB
5.7-day strike ban
6. Strike
a.)SOLE-Assumption of jurisdiction or certification for compulsory
arbitration by NLRC (AJO or COCA)
b.)If there is already a strike-RTWO, under the same terms and
condition prior to strike (status quo ante:the state of thins as it was
before)
c.)In case of hospitals, clinics and medical institutions AJO or
COCA within 24 hours from-knowledge of strike or occurrence of
strike
d.)Resolution of Secretary, NLRC or Voluntary Arbitration 30 days

Labor Relations Laws

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Labor Relations Laws

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Page 1 of 35……..

Labor Relation Laws

LABOR RELATIONS LAWS

I. Law on Labor Organization (Articles 234-246; 267-271)

II. Law on Collective Bargaining (Articles 250-259)

III. Law on Unfair Labor Practices (Articles 247-249)

IV. Law on Strikes, Picketing and Lockout (Articles 263-266)

V. Law on Settlement of Labor Disputes (Articles 213-225, 226-

These elements of labor law are interrelated in that each is

Labor policies set the guidelines to be implemented by the other

Labor standards prescribe the limits in the terms and conditions

Labor relations laws provide the procedures that govern the

Labor standards, being fixed by law, may be found in the law

Individual rights of workers vis-à-vis collective rights of labor.

The INDIVIDUAL RIGHTS of WORKERS are found in Article III, Bill

INDIVIDUAL RIGHTS OF WORKERS

1. Right to due process

COLLECTIVE RIGHTS OF LABOR

I will be focusing more on the first three collective rights as this is

The right to self-organization applies to ALL workers, including

This right to self-organization of government employees is subject

1. High-level employees whose functions are POLICY MAKING or

The right to self-organization is a collective right of labor, as

The freedom of association clause,2 which now embraces the

It is a privilege because the law limits its exercise when it runs in

This is so because inherent in every labor union is the RIGHT OF

LABOR ORGANIZATION – is “any UNION or ASSOCIATION of

EMPLOYEES – includes any person in the employ of the employer. The

The definition of “labor organization” indicates the PRINCIPAL

The OTHER PRINCIPAL PURPOSE of labor organization is

The SECONDARY PUPOSES of labor organization is to promote

KINDS OF LABOR ORGANIZATIONS

1. Independent labor union (basic unit of organized labor; active,

PROVISIONS OF THE LABOR CODE THAT PROTECTS AND

1. On unfair labor practices;

REGISTRATION OF LABOR ORGANIZATIONS

If the applicants are FEDERATIONS or NATIONAL UNIONS, the

1. proof of affiliation of AT LEAST TEN (10) LOCALS or

A LOCAL or CHAPTER of a FEDERATION or NATIONAL UNION

On UNION REGISTRATION, the Supreme Court pointed out that

Applications for registration are filed with the LABOR

ACTION ON THE APPLICATION

1. within THIRTY (30) DAYS from filing, approval or denial;

THE BARGAINING UNIT (BU)

One of the requirements for registration of a labor organization is

The term “BARGAINING UNIT”, as defined by the Supreme Court,

Another definition is: “a group of employees of a given employer,

A UNIT, to be APPROPRIATE, must effect a GROUPING of

COLLECTIVE BARGAINING. (Democratic Labor Association v. Cebu

FACTORS IN DETERMINING THE BARGAINING UNIT

1. the WILL of the employees (Globe Doctrine);

(Democratic Labor Association v. Cebu Stevedoring Co., 103 Phil

Based on the Supreme Court Decisions, the BASIC TEST of

The GLOBE DOCTRINE holds that the WILL of the EMPLOYEES

On the other hand, the DOLE appears to favor a different policy,

In forming the ABU, it is not the convenience or interest of the

The general rule is “One Company-One Union”. Exceptions: (1)

Article 245 of the LC ALLOWS the formation of MORE than one

SIGNIFICANCE OF REGISTRATION (Art. 242 LC)

Through REGISTRATION, a LABOR ORGANIZATION acquires

The OPERATIVE ACT that vests this acquisition of LEGAL

1. To ACT as the REPRESENTATIVE of its MEMBERS for the

The INCOME and PROPERTIES of legitimate labor organizations,