requirements of termination of employment; and the

SYLLABUS IN LABOR RELATIONS LAW (LAW204M) relief’s and remedies in cases of illegal dismissals; and

10. jurisdiction and procedures in settling labor disputes

COURSE DESCRIPTION:

This course is about the legal relations of employees and their
employers as delineated by the employees’ rights to self-
organization, collective bargaining, and concerted activities,
including the right to strike, on one hand, and the employers’
management prerogatives and right to lock-out and by the other
modes of labor dispute resolution and the law on termination of
employment.
LEARNING OUTCOMES:
ASSESSMENTS, REQUIREMENTS, AND CONSULTATION:
Students will be assessed during the term based on:
Class recitation 15%
Handwritten case digests of the cases listed in the syllabus below. Digests
should highlight the labor law ratio decidendi. The notebooks on which the
digests are written should be submitted on the final examination day. 15%

On completion of the course, the student is expected to Quizzes 30%

restate and discuss:
Final examination 40%
1. the State policies on labor relations;

2. the meaning, scope, and legal bases of the rights to self-

organization, collective bargaining, and concerted
activities, including the right to strike, and the meaning, 🟃 Every student should submit a class card with a photo
scope, and legal bases of management prerogatives; (preferably 2x2) and an email address by the 2nd class day.

3. the rules regulating organization, management, and activities 🟃 Consultation is by appointment or through email.
of labor organizations;

4. what an appropriate bargaining unit is, how it is

determined, and how its bargaining representative is
selected;
5. the process of collective bargaining and negotiation and
how a collective bargaining agreement is administered;
REFERENCES
1. 1987 Constitution of the Philippines;
2. P.D. No. 442 (the Labor Code of the Philippines), as amended;

6. what unfair labor practices are; 3. D.O. No. 40-03, as amended;

7. the meaning, legal basis and limitations of strikes and other 4. Executive Order No. 180 (1987);
union concerted activities and employer lock-out;
5. Amended Rules Governing the Exercise of the Right of Government
8. the rudimentary rules of labor relations in the public
Employees to Self-Organization the Implementing Rules;
sector;
6. any labor relations law textbook
9. the right to security of tenure; when an employee may quit
his/her employment; the just and business-related causes
for termination of employment; the procedural

1
Part I. State policies on labor relations
A. Voluntary/democratic modes of dispute settlement
1. Labor dispute
Labor Code (LC), Art. 219(l)
Article 219. Definitions. – (l) (I) "Labor dispute" includes any controversy or matter
concerning terms and conditions of employment or the association or representation of
persons in negotiating, fixing, maintaining, changing or arranging the terms and
conditions of employment, regardless of whether the disputants stand in the proximate
relation of employer and employee.
• "Labor dispute" includes any controversy or matter concerning:
o Terms and conditions of employment
o The association or representation of persons in negotiating, fixing,
maintaining, changing or arranging the terms and conditions of
employment, regardless of whether the disputants stand in the
proximate relation of employer and employee
San Miguel Corp. Employees Union v. Bersamira, G.R. No. 87700, June 13, 1990;
• A "labor dispute" as defined in Article 212 (1) of the Labor Code includes "any
controversy or matter concerning terms and conditions of employment or the
association or representation of persons in negotiating, fixing, maintaining,
changing, or arranging the terms and conditions of employment, regardless of
whether the disputants stand in the proximate relation of employer and
employee."
• While it is SanMig's submission that no employer-employee relationship exists
between itself, on the one hand, and the contractual workers of Lipercon and
D'Rite on the other, a labor dispute can nevertheless exist "regardless of whether
the disputants stand in the proximate relationship of employer and employee"
(Article 212 [1], Labor Code, supra) provided the controversy concerns, among
others, the terms and conditions of employment or a "change" or "arrangement"
thereof (ibid).Put differently, and as defined by law, the existence of a labor
dispute is not negatived by the fact that the plaintiffs and defendants do not
stand in the proximate relation of employer and employee.
• What the Union seeks is to regularize the status of the employees contracted by
Lipercon and D'Rite and, in effect, that they be absorbed into the working unit
of SanMig.
Halagueña v. PAL, G.R. No. 172013, October 2, 2009;
• (F) On July 11, 2001, respondent and FASAP entered into a Collective
Bargaining Agreement 3 incorporating the terms and conditions of their
agreement for the years 2000 to 2005, hereinafter referred to as PAL-FASAP
CBA. Section 144, Part A of the PAL-FASAP CBA, provides that: Subject to the
grooming standards provisions of this Agreement, compulsory retirement shall be
fifty-five (55) for females and sixty (60) for males. petitioners filed a Special Civil
Action for Declaratory Relief with Prayer for the Issuance of Temporary
Restraining Order and Writ of Preliminary Injunction. RTC assumed
jurisdiction holding that the allegations in the Petition do not make out a labor
dispute arising from employer-employee relationship as none is shown to exist.
This case is not directed specifically against respondent arising from any act of
the latter, nor does it involve a claim against the respondent. Rather, this case
seeks a declaration of the nullity of the questioned provision of the CBA, which
is within the Court's competence, with the allegations in the Petition
constituting the bases for such relief sought.
• The jurisdiction of labor arbiters and the NLRC under Article 217 of the Labor
Code is limited to disputes arising from an employer-employee relationship
which can only be resolved by reference to the Labor Code, other labor statutes,
or their collective bargaining agreement.
• Not every controversy or money claim by an employee against the employer or
vice-versa is within the exclusive jurisdiction of the labor arbiter. Actions
between employees and employer where the employer-employee relationship is
merely incidental and the cause of action precedes from a different source of
obligation is within the exclusive jurisdiction of the regular court. 18 Here, the
employer-employee relationship between the parties is merely incidental and the
cause of action ultimately arose from different sources of obligation, i.e., the
Constitution and CEDAW.
• The said issue cannot be resolved solely by applying the Labor Code. Rather, it
requires the application of the Constitution, labor statutes, law on contracts and
the Convention on the Elimination of All Forms of Discrimination Against
Women, 16 and the power to apply and interpret the Constitution and CEDAW
is within the jurisdiction of trial courts, a court of general jurisdiction.
• The change in the terms and conditions of employment, should Section 144 of
the CBA be held invalid, is but a necessary and unavoidable consequence of the
principal relief sought, i.e., nullification of the alleged discriminatory provision
in the CBA. Thus, it does not necessarily follow that a resolution of controversy
that would bring about a change in the terms and conditions of employment is a
labor dispute, cognizable by labor tribunals. It is unfair to preclude petitioners
from invoking the trial court's jurisdiction merely because it may eventually
result into a change of the terms and conditions of employment.
Portillo v. Rudolf Lietz, Inc., G.R. 196539, October 10, 2012);
• not all disputes between an employer and his employee(s) fall within the
jurisdiction of the labor tribunals. We differentiated between abandonment per
se and the manner and consequent effects of such abandonment and ruled that
the first, is a labor case, while the second, is a civil law case.
• "money claims of workers" referred to in paragraph 3 of Article 217 embraces
money claims which arise out of or in connection with the employer-employee
relationship, or some aspect or incident of such relationship. Put a little
differently, that money claims of workers which now fall within the original and
exclusive jurisdiction of Labor Arbiters are those money claims which have some
reasonable causal connection with the employer-employee relationship.
• We thereafter ruled that the "reasonable causal connection with the employer-
employee relationship" is a requirement not only in employees' money claims
2
 against the employer but is, likewise, a condition when the claimant is the
employer.
• It is clear, therefore, that while Portillo's claim for unpaid salaries is a money
claim that arises out of or in connection with an employer-employee relationship,
Lietz, Inc.'s claim against Portillo for violation of the goodwill clause is a money
claim based on an act done after the cessation of the employment relationship.
And, while the jurisdiction over Portillo's claim is vested in the labor arbiter, the
jurisdiction over Lietz, Inc.'s claim rests on the regular courts.
• In the case at bar, the difference in the nature of the credits that one has against
the other, conversely, the nature of the debt one owes another, which difference
in turn results in the difference of the forum where the different credits can be
enforced, prevents the application of compensation. Simply, the labor tribunal in
an employee's claim for unpaid wages is without authority to allow the
compensation of such claims against the post employment claim of the former
employer for breach of a post employment condition. The labor tribunal does not
have jurisdiction over the civil case of breach of contract.
• There is no causal connection between the petitioner employees' claim for unpaid
wages and the respondent employers' claim for damages for the alleged
"Goodwill Clause" violation. Portillo's claim for unpaid salaries did not have
anything to do with her alleged violation of the employment contract as, in fact,
her separation from employment is not "rooted" in the alleged contractual
violation. She resigned from her employment. She was not dismissed. Portillo's
entitlement to the unpaid salaries is not even contested. Indeed, Lietz, Inc.'s
argument about legal compensation necessarily admits that it owes the money
claimed by Portillo.
Philippine Commercial International Bank v. Gomez, G.R. No. 199601, November 23,
2015
• (F) In the instant case, the PCIB made deductions on Josephine's salary even if
the investigation was still pending. Belatedly, the PCIB issued a memorandum
finding Josephine grossly negligent and requiring her to pay the amount which
the bank erroneously paid to Harrington's impostor. When Josephine asked for
legal and factual basis for the finding of negligence, the PCIB refused to give
any. Moreover, the PCIB continued to make deductions on Josephine's salary,
allowances, and bonuses.
• Labor Arbiters have original and exclusive jurisdiction to hear and decide claims
for actual, moral, exemplary, and other forms of damages arising from employer-
employee relations. The legislative intent appears clear to allow Labor Arbiters
to award to an employee not only the reliefs provided by our labor laws, but also
moral and other forms of damages governed by the Civil Code. Specifically, we
have mentioned, in fact, that a complaint for damages under Articles 19, 20, and
21 of the Civil Code would not suffice to keep the case without the jurisdictional
boundaries of our labor courts — especially when the claim for damages is
interwoven with a labor dispute.
• In the present case, Josephine filed a civil complaint for damages against the
PCIB based on how her employer quickly concluded that she was negligent and
hence arbitrarily started to deduct from her salary. Clearly, without having to
dwell on the merits of the case, Josephine opted to invoke the jurisdiction of our
civil courts because her right to fair treatment was violated.
• From the foregoing, the case at bar is intrinsically concerned with a civil dispute
because it has something to do with Josephine's right under Article 19 of the
Civil Code, and does not involve an existing employer-employee relation within
the meaning of Article 224 of the Labor Code. Josephine's complaint was,
therefore, properly filed with and exclusively cognizable by the RTC.
• when the cause of action has no reasonable connection with any of the claims
provided for in Article 224 of the Labor Code, jurisdiction over the action is with
the regular courts. 6 Here, since Josephine's cause of action is based on a quasi-
delict or tort under Article 19 in relation to Article 21 of the Civil Code, the civil
courts (not the labor tribunals) have jurisdiction over the subject matter of this
case.
2. Preferred mode of dispute settlement
CONST., Art. XIII, Sec. 3., par. 3;
Section 3. The State shall afford full protection to labor, local and overseas, organized
and unorganized, and promote full employment and equality of employment
opportunities for all.
It shall guarantee the rights of all workers to self-organization, collective
bargaining and negotiations, and peaceful concerted activities, including the right to
strike in accordance with law. They shall be entitled to security of tenure, humane
conditions of work, and a living wage. They shall also participate in policy and decision-
making processes affecting their rights and benefits as may be provided by law.
The State shall promote the principle of shared responsibility between workers
and employers and the preferential use of voluntary modes in settling disputes, including
conciliation, and shall enforce their mutual compliance therewith to foster industrial
peace.
The State shall regulate the relations between workers and employers,
recognizing the right of labor to its just share in the fruits of production and the right of
enterprises to reasonable returns on investments, and to expansion and growth.
• (Ano) The Constitution uses the word “voluntary” because dispute resolution
must come from agreement. The Labor Code uses the word “democratic”
because it directly involves the workers or their representatives and the
employers. It does not involve lawyers as latter do not play significant roles.
LC, Art. 218 A & B;
Article 218. Declaration of Policy. - A. It is the policy of the State:
3
 (a) To promote and emphasize the primacy of free collective bargaining and
negotiations, including voluntary arbitration, mediation and conciliation, as modes of
settling labor or industrial disputes;
(b) To promote free trade unionism as an instrument for the enhancement of
democracy and the promotion of social justice and development;
(c) To foster the free and voluntary organization of a strong and united labor
movement;
(d) To promote the enlightenment of workers concerning their rights and
obligations as union members and as employees;
(e) To provide an adequate administrative machinery for the expeditious
settlement of labor or industrial disputes;
(f)To ensure a stable but dynamic and just industrial peace; and
(g) To ensure the participation of workers in decision and policymaking
processes affecting their rights, duties and welfare.
B. To encourage a truly democratic method of regulating the relations between
the employers and employees by means of agreements freely entered into through
collective bargaining , no court or administrative agency or official shall have the power
to set or fix wages, rates of pay, hours of work or other terms and conditions of
employment, except as otherwise provided under this Code.
• Preferred mode of dispute resolution:
o Collective bargaining and negotiations
o Voluntary arbitration
o Mediation
o Conciliation
o Grievance machinery as provided by the CBA
Kiok Loy v. NLRC, G.R. No. L-54334, January 22, 1986;
• Collective bargaining which is defined as negotiations towards a collective
agreement, 6 is one of the democratic frameworks under the New Labor Code,
designed to stabilize the relation between labor and management and to create
a climate of sound and stable industrial peace. It is a mutual responsibility of
the employer and the Union and is characterized as a legal obligation.
• The mechanics of collective bargaining is set in motion only when the following
jurisdictional preconditions are present, namely,
o (1) possession of the status of majority representation of the employees'
representative in accordance with any of the means of selection or
designation provided for by the Labor Code;
o (2) proof of majority representation; and
o (3) a demand to bargain under Article 251, par. (a) of the New Labor
Code . . . all of which preconditions are undisputedly present in the
instant case.
• Company is GUILTY of unfair labor practice. It has been indubitably established
that (1) respondent Union was a duly certified bargaining agent; (2) it made a
definite request to bargain, accompanied with a copy of the proposed Collective
Bargaining Agreement, to the Company not only once but twice which were left
unanswered and unacted upon; and (3) the Company made no counter proposal
whatsoever all of which conclusively indicate lack of a sincere desire to negotiate.
• A Company's refusal to make counter proposal if considered in relation to the
entire bargaining process, may indicate bad faith and this is specially true where
the Union's request for a counter proposal is left unanswered. 9 Even during the
period of compulsory arbitration before the NLRC, petitioner Company's
approach and attitude — stalling the negotiation by a series of postponements,
non-appearance at the hearing conducted, and undue delay in submitting its
financial statements, lead to no other conclusion except that it is unwilling to
negotiate and reach an agreement with the Union.
Scout Ramon V. Albano Memorial College v. Noriel, 85 SCRA 494 (1978)
• "The institution of collective bargaining is, to recall Cox, a prime manifestation
of industrial democracy at work. The two parties to the relationship, labor and
management, make their own rules by coming to terms. That is to govern
themselves in matters that really count.
• A certification election for the collective bargaining process is the fairest and
most effective way of determining which labor organization can truly represent
the working force. It is a fundamental postulate that the will of the majority, if
given expression in an honest election with freedom on the part of the voters to
make their choice, is controlling. No better device can assure the institution of
industrial democracy with the two parties to a business enterprise, management
and labor, establishing a regime of self-rule.
• The Supreme Court dismissed the petition holding that the Bureau of Labor
Relations, in the exercise of sound discretion, may order a certification election
notwithstanding the failure to meet the 30% requirement as it is the most
appropriate means of ascertaining the will of labor, a matter towards which
management should maintain a hands-off policy.
• (Ano) There should be certification election for there be representation in the
collective bargaining.
Voluntary vs. compulsory modes: LC, Art. 278(g); Art. 224
Article 278. Strikes, Picketing, and Lockouts. (g) When, in his opinion, there exists a
labor dispute causing or likely to cause a strike or lockout in an industry indispensable
to the national interest, the Secretary of Labor and Employment may assume jurisdiction
over the dispute and decide it or certify the same to the Commission for compulsory
arbitration. Such assumption or certification shall have the effect of automatically
enjoining the intended or impending strike or lockout as specified in the assumption or
certification order. If one has already taken place at the time of assumption or
certification, all striking or locked out employees shall immediately return to work and
the employer shall immediately resume operations and readmit all workers under the
same terms and conditions prevailing before the strike or lockout. The Secretary of Labor
and Employment or the Commission may seek the assistance of law enforcement agencies
to ensure compliance with this provision as well as with such orders as he may issue to
enforce the same.
4
 In line with the national concern for and the highest respect accorded to the right
of patients to life and health, strikes and lockouts in hospitals, clinics and similar medical
institutions shall, to every extent possible, be avoided, and all serious efforts, not only by
labor and management but government as well, be exhausted to substantially minimize,
if not prevent, their adverse effects on such life and health, through the exercise, however
legitimate, by labor of its right to strike and by management to lockout. In labor disputes
adversely affecting the continued operation of such hospitals, clinics or medical
institutions, it shall be the duty of the striking union or locking-out employer to provide
and maintain an effective skeletal workforce of medical and other health personnel,
whose movement and services shall be unhampered and unrestricted, as are necessary
to insure the proper and adequate protection of the life and health of its patients, most
especially emergency cases, for the duration of the strike or lockout. In such cases,
therefore, the Secretary of Labor and Employment may immediately assume, within
twenty-four (24) hours from knowledge of the occurrence of such a strike or lockout,
jurisdiction over the same or certify it to the Commission for compulsory arbitration. For
this purpose, the contending parties are strictly enjoined to comply with such orders,
prohibitions and/or injunctions as are issued by the Secretary of Labor and Employment
or the Commission, under pain of immediate disciplinary action, including dismissal or
loss of employment status or payment by the locking-out employer of backwages,
damages and other affirmative relief, even criminal prosecution against either or both of
them.
The foregoing notwithstanding, the President of the Philippines shall not be
precluded from determining the industries that, in his opinion, are indispensable to the
national interest, and from intervening at any time and assuming jurisdiction over any
such labor dispute in order to settle or terminate the same.
• Requisites for enjoining or impending strike or lockout:
o There exist a labor dispute causing or likely to cause a strike or lockout
o In an industry indispensable to national interest
o Secretary of Labor and Employment assume jurisdiction and decide or
certify the same to the Commission for compulsory arbitration.
• In labor disputes adversely affecting the continued operation of such hospitals,
clinics or medical institutions, it shall be the duty of the striking union or
locking-out employer to provide and maintain an effective skeletal workforce of
medical and other health personnel, whose movement and services shall be
unhampered and unrestricted, as are necessary to insure the proper and
adequate protection of the life and health of its patients, most especially
emergency cases, for the duration of the strike or lockout.
• (Ano) Considered exception to Art. 218(B)
• (Ano) The refusal to bargain constitutes unfair labor practice. The employer will
be administratively and criminally liable.
• (Ano) If the Secretary already has jurisdiction and certifies it to the NLRC,
commission of strike will already be illegal.
• (Ano) Employer will lose the case if refused to be involved in arbitration.
Article 224. Jurisdiction of the Labor Arbiters and the Commission. - (a) Except as
otherwise provided under this Code, the Labor Arbiters shall have original and exclusive
jurisdiction to hear and decide, within thirty (30) calendar days after the submission of
the case by the parties for decision without extension, even in the absence of stenographic
notes, the following cases involving all workers, whether agricultural or non-agricultural:
(1) Unfair labor practice cases;
(2) Termination disputes;
(3) If accompanied with a claim for reinstatement, those cases that workers may
file involving wages, rates of pay, hours of work and other terms and conditions of
employment;
(4) Claims for actual, moral, exemplary and other forms of damages arising from
the employer-employee relations;
(5) Cases arising from any violation of Article 264 of this Code, including
questions involving the legality of strikes and lockouts; and
(6) Except claims for Employees Compensation, Social Security, Medicare and
maternity benefits, all other claims arising from employer-employee relations, including
those of persons in domestic or household service, involving an amount exceeding five
thousand pesos (P5,000.00) regardless of whether accompanied with a claim for
reinstatement.
(b) The Commission shall have exclusive appellate jurisdiction over all cases
decided by Labor Arbiters.
(c) Cases arising from the interpretation or implementation of collective
bargaining agreements and those arising from the interpretation or enforcement of
company personnel policies shall be disposed of by the Labor Arbiter by referring the same
to the grievance machinery and voluntary arbitration as may be provided in said
agreements.
• Related claims from benefits not under jurisdiction of labor arbiter:
o Employees Compensation
o Social Security
o Medicate
o Maternity benefits
Collective bargaining: LC, Art. 218 B; Arts. 262 – 264; Arts. 99, 122(b), 123 (par.
3), & 124 (pars. 4 & 5)
Article 218. Declaration of Policy. - A. It is the policy of the State:
B. To encourage a truly democratic method of regulating the relations between
the employers and employees by means of agreements freely entered into through collective
bargaining, no court or administrative agency or official shall have the power to set or fix
wages, rates of pay, hours of work or other terms and conditions of employment, except
as otherwise provided under this Code .
5
 • In order to promote democracy in regulating relations, no court or administrative
agency or official shall have the power to set or fix wages, rates of pay, hours of
work or other terms and conditions of employment, except as otherwise provided
under this Code.
Article 262. Duty to Bargain Collectively in the Absence of Collective Bargaining
Agreements. - In the absence of an agreement or other voluntary arrangement providing
for a more expeditious manner of collective bargaining, it shall be the duty of employer
and the representatives of the employees to bargain collectively in accordance with the
provisions of this Code.
Article 263. Meaning of Duty to Bargain Collectively. - 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 proposal or to make any concession.
• Duty to bargain collectively; elements
o Performance of a mutual obligation to meet and convene promptly and
expeditiously in good faith
o 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
o And executing a contract incorporating such agreements if requested by
either party but such duty does not compel any party to agree to a
proposal or to make any concession.
Article 264. Duty to Bargain Collectively When There Exists a Collective Bargaining
Agreement. - When there is a collective bargaining agreement, the duty to bargain
collectively shall also mean that neither party shall terminate nor modify such agreement
during its lifetime. However, either party can serve a written notice to terminate or
modify the agreement at least sixty (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.
• Duty to bargain collectively not considered to include capacity to modify existing
bargaining agreement.
• At least 60 days service of prior written notice to terminate or modify agreement.
• Within 60 days, there is a duty to maintain status quo.
Article 99. Regional Minimum Wages. - The minimum wage rates for agricultural and
non-agricultural employees and workers in each and every region of the country shall be
those prescribed by the Regional Tripartite Wages and Productivity Boards.
• RTWPB
• (Ano) Considered exception to Art. 218(B)
Article 122. Creation of Regional Tripartite Wages and Productivity Boards. - There is
hereby created Regional Tripartite Wages and Productivity Boards, hereinafter referred
to as Regional Boards, in all regions, including autonomous regions as may be established
by law. The Commission shall determine the offices/headquarters of the respective
Regional Boards.
The Regional Boards shall have the following powers and functions in their
respective territorial jurisdictions:
(b) To determine and fix minimum wage rates applicable in their regions,
provinces or industries therein and to issue the corresponding wage orders, subject to
guidelines issued by the Commission;
• It would be the RTWPB to issue wage orders applicable to regions, provinces or
industries.
Article 123. Wage Order. - Whenever conditions in the region so warrant, the Regional
Board shall investigate and study all pertinent facts; and based on the standards and
criteria herein prescribed, shall proceed to determine whether a Wage Order should be
issued. Any such Wage Order shall take effect after fifteen (15) days from its complete
publication in at least one (1) newspaper of general circulation in the region.
In the performance of its wage-determining functions, the Regional Board shall
conduct public hearings/consultations, giving notices to employees' and employers'
groups, provincial, city and municipal officials and other interested parties.
Any party aggrieved by the Wage Order issued by the Regional Board may appeal
such order to the Commission within ten (10) calendar days from the publication of such
order. It shall be mandatory for the Commission to decide such appeal within sixty (60)
calendar days from the filing thereof.
The filing of the appeal does not stay the order unless the person appealing such
order shall file with the Commission, an undertaking with a surety or sureties
satisfactory to the Commission for the payment to the employees affected by the order of
the corresponding increase, in the event such order is affirmed .
• Requisites for staying wage order upon appeal:
o File undertaking
o Surety satisfactory to the commission for the payment to the employees
in case order is affirmed.
Article 124. Standards/Criteria for Minimum Wage Fixing. - The regional minimum
wages to be established by the Regional Board shall be as nearly adequate as is
6
economically feasible to maintain the minimum standards of living necessary for the
health, efficiency and general well-being of the employees within the framework of the
national economic and social development program. In the determination of such regional
minimum wages, the Regional Board shall, among other relevant factors, consider the
following:
(a) The demand for living wages;
(b) Wage adjustment vis-a-vis the consumer price index;
(c) The cost of living and changes or increases therein;
(d) The needs of workers and their families;
(e) The need to induce industries to invest in the countryside;
(f) Improvements in standards of living;
(g) The prevailing wage levels;
(h) Fair return of the capital invested and capacity to pay of employers;
(i) Effects on employment generation and family income; and
(j) The equitable distribution of income and wealth along the imperatives of
economic and social development.
The wages prescribed in accordance with the provisions of this Title shall be the
standard prevailing minimum wages in every region. These wages shall include wages
varying with industries, provinces or localities if in the judgment of the Regional Board,
conditions make such local differentiation proper and necessary to effectuate the purpose
of this Title.
Any person, company, corporation, partnership or any other entity engaged in
business shall file and register annually with the appropriate Regional Board,
Commission and the National Statistics Office, an itemized listing of their lab or
component, specifying the names of their workers and employees below the managerial
level , including learners, apprentices and disabled/handicap p ed workers who were hired
under the terms prescribed in the employment contracts, and t heir corresponding
salaries and wages.
Where the application of any prescribed wage-increase by virtue of a law or wage
order issued by any Regional Board results in distortions of the wage structure within an
establishment, the employer and the union shall negotiate to correct the distortions. Any
dispute arising from wage distortions shall be resolved through the grievance procedure
under their collective bargaining agreement and, if it remains unresolved, through
voluntary arbitration. Unless otherwise agreed by the parties in writing, such dispute shall
be decided by the voluntary arbitrators within ten (10) calendar days from the time said
dispute was referred to voluntary arbitration.
In cases where there are no collective agreements or recognized labor unions, the
employers and workers shall endeavor to correct such distortions. Any dispute arising
therefrom shall be settled through the National Conciliation and Mediation Board and, if
it remains unresolved after ten (10) calendar days of conciliation, shall be referred to the
appropriate branch of the National Labor Relations Commission (NLRC). It shall be
mandatory for the NLRC to conduct continuous hearings and decide the dispute within
twenty (20) calendar days from the time said dispute is submitted for compulsory
arbitration.
The pendency of a dispute arising from a wage distortion shall not in any way
delay the applicability of any increase in prescribed wage rates pursuant to the provisions
of law or wage order.
As used herein, a wage distortion shall mean a situation where an increase in
prescribed wage rates results in the elimination or severe contraction of intentional
quantitative differences in wage or salary rates between and among employee groups in
an establishment as to effectively obliterate the distinctions embodied in such wage
structure based on skills, length of service, or other logical bases of differentiation.
All workers paid by result, including those who are paid on piecework, takay,
pakyaw or task basis, shall receive not less than the prescribed wage rate s per eight (8)
hours of work a day , or a proportion thereof for working less than eight (8) hours.
All recognized learnership and apprenticeship agreements shall be considered
automatically modified insofar as their wage clauses are concerned to reflect the
prescribed wage rates.
• Remedy in case of wage distortions in case of existence of CBA (Step process):
o Employer and union negotiate to correct the distortions.
o Grievance procedure under the CBA.
o Voluntary arbitration which shall be decided within 10 days form
referral to arbitration.
• Remedy in case of wage distortions in case of existence of NO CBA (Step
process):
o Employer and employees endeavor to correct distortions.
o National Conciliation and Mediation Board which shall be decided
within 10 days.
o NLRC which shall be decided within 20 days form submission for
resolution.
• (Ano) Considered exception to Art. 218(B)
Resort to grievance machinery: LC, Art 224(c) & 274
Article 224. Jurisdiction of the Labor Arbiters and the Commission. - (c) Cases arising
from the interpretation or implementation of collective bargaining agreements and those
arising from the interpretation or enforcement of company personnel policies shall be
disposed of by the Labor Arbiter by referring the same to the grievance machinery and
voluntary arbitration as may be provided in said agreements.
• Jurisdiction of the Labor Arbiters and the Commission
o Interpretation and implementation of CBA
o Interpretation or enforcement of company personnel policies.
7
 • Labor shall dispose the case by reference to grievance machinery and voluntary
arbitration provided in the agreements.
Article 274. Jurisdiction of Voluntary Arbitrators and Panel of Voluntary Arbitrators. -
The Voluntary Arbitrator or panel of Voluntary Arbitrators shall have original and
exclusive jurisdiction to hear and decide all unresolved grievances arising from the
interpretation or implementation of the Collective Bargaining Agreement and those
arising from the interpretation or enforcement of company personnel policies referred to
in the immediately preceding article. Accordingly, violations of a Collective Bargaining
Agreement, except those which are gross in character, shall no longer be treated as unfair
labor practice and shall be resolved as grievances under the Collective Bargaining
Agreement. For purposes of this article, gross violations of Collective Bargaining
Agreement shall mean flagrant and/or malicious refusal to comply with the economic
provisions of such agreement.
The Commission, its Regional Offices and the Regional Directors of the
Department of Labor and Employment shall not entertain disputes, grievances or
matters under the exclusive and original jurisdiction of the Voluntary Arbitrator or panel
of Voluntary Arbitrators and shall immediately dispose and refer the same to the
Grievance Machinery or Voluntary Arbitration provided in the Collective Bargaining
Agreement.
• Original and exclusive jurisdiction of Voluntary Arbitrators and Panel of
Voluntary Arbitrators, also called as grievances:
o unresolved grievances arising from the interpretation or
implementation of the Collective Bargaining Agreement
o unresolved grievances arising from interpretation or enforcement of
company personnel policies
• Gross violations of CBA treated as unfair labor practices and shall be resolved
as grievances.
• Gross violations of CBA – Flagrant and/or malicious refusal to comply with
economic provisions
• (Ano) Resort only to grievance machinery and go to NLRC.
• (Ano) Grievance machinery – series of formal steps that parties to a CBA have
agreed to take for adjudication of grievances.
• (Ano) If grievance machinery is disputed, go to voluntary arbitration. In
addition, if the case is already pending before any forum and the parties wishes
to have the dispute before the Voluntary Arbitration, the latter will have
jurisdiction regardless of the stage of the proceeding.
Conciliation and mediation: LC, Art. 234(a)
Article 234. Mandatory Conciliation and Endorsement of Cases. (a) Except as provided
in Title VII-A, Book V of this Code, as amended, or as may be excepted by the Secretary
of Labor and Employment, all issues arising from labor and employment shall be subject
to mandatory conciliation-mediation. The labor arbiter or the appropriate DOLE agency
or office that has jurisdiction over the dispute shall entertain only endorsed or referred
cases by the duly authorized officer.
• Not subject to mandatory conciliation:
o provided in Title VII-A, Book V of this Code, as amended
o excepted by the Secretary of Labor and Employment
• (Ano) Conciliation – Conciliator will try to keep parties talking, back and forth,
stands as a good fellow who tries to keep things calm. No proposals are made
by the Conciliation.
• (Ano) Mediation – Advising and offering parties solutions with the end in view
of assisting them reaching their own mutually acceptable settlement.
Mediator’s proposals came from the arrival of common ground.
Voluntary arbitration: LC, Arts. 224(c), 274; & 278(h)
Article 224. Jurisdiction of the Labor Arbiters and the Commission. - (c) Cases arising
from the interpretation or implementation of collective bargaining agreements and those
arising from the interpretation or enforcement of company personnel policies shall be
disposed of by the Labor Arbiter by referring the same to the grievance machinery and
voluntary arbitration as may be provided in said agreements.
• Jurisdiction of the Labor Arbiters and the Commission
o Interpretation and implementation of CBA
o Interpretation or enforcement of company personnel policies.
• Labor arbiter shall dispose the case by reference to grievance machinery and
voluntary arbitration provided in the agreements.
Article 274. Jurisdiction of Voluntary Arbitrators and Panel of Voluntary Arbitrators. -
The Voluntary Arbitrator or panel of Voluntary Arbitrators shall have original and
exclusive jurisdiction to hear and decide all unresolved grievances arising from the
interpretation or implementation of the Collective Bargaining Agreement and those
arising from the interpretation or enforcement of company personnel policies referred to
in the immediately preceding article. Accordingly, violations of a Collective Bargaining
Agreement, except those which are gross in character, shall no longer be treated as unfair
labor practice and shall be resolved as grievances under the Collective Bargaining
Agreement. For purposes of this article, gross violations of Collective Bargaining
Agreement shall mean flagrant and/or malicious refusal to comply with the economic
provisions of such agreement.
The Commission, its Regional Offices and the Regional Directors of the
Department of Labor and Employment shall not entertain disputes, grievances or
matters under the exclusive and original jurisdiction of the Voluntary Arbitrator or panel
of Voluntary Arbitrators and shall immediately dispose and refer the same to the
Grievance Machinery or Voluntary Arbitration provided in the Collective Bargaining
Agreement.
8
Article 278. Strikes, Picketing, and Lockouts. (h) Before or at any stage of the compulsory
arbitration process, the parties may opt to submit their dispute to voluntary arbitration.
• Original and exclusive jurisdiction of Voluntary Arbitrators and Panel of
Voluntary Arbitrators.
o unresolved grievances arising from the interpretation or
implementation of the Collective Bargaining Agreement
o unresolved grievances arising from interpretation or enforcement of
company personnel policies
• Gross violations of CBA not treated as unfair labor practices and shall be
resolved as grievances.
• Gross violations of CBA – Flagrant and/or malicious refusal to comply with
economic provisions
3. Non-interference by government
LC, Art. 218 B
Article 218. Declaration of Policy. B. To encourage a truly democratic method of
regulating the relations between the employers and employees by means of agreements
freely entered into through collective bargaining, no court or administrative agency or
official shall have the power to set or fix wages, rates of pay, hours of work or other terms
and conditions of employment, except as otherwise provided under this Code.
B. Trade unionism
LC, Art. 218 A(b) & (c)
Article 218. Declaration of Policy. - A. It is the policy of the State:
(b) To promote free trade unionism as an instrument for the enhancement of
democracy and the promotion of social justice and development;
(c) To foster the free and voluntary organization of a strong and united labor
movement;
C. Work enlightenment
LC, Arts. 218 A(d), 250 (p) & 292 (a)
Article 218. Declaration of Policy. - A. It is the policy of the State:
(d) To promote the enlightenment of workers concerning their rights and
obligations as union members and as employees;
Article 250. Rights and Conditions of Membership in a Labor Organization. - The
following are the rights and conditions of membership in a labor organization:
(p) It shall be the duty of any labor organization and its officers to inform its
members on the provisions of its constitution and by-laws, collective bargaining
agreement, the prevailing labor relations system and all their rights and obligations
under existing labor laws.
For this purpose, registered labor organizations may assess reasonable dues to
finance labor relations seminars and other labor education activities.
Any violation of the above rights and conditions of membership shall be a ground
for cancellation of union registration or expulsion of officers from office, whichever is
appropriate. At least thirty percent (30%) of the members of a union or any member or
members specially concerned may report such violation to the Bureau. The Bureau shall
have the power to hear and decide any reported violation to mete the appropriate penalty.
Criminal and civil liabilities arising from violations of above rights and
conditions of membership shall continue to be under the jurisdiction of ordinary courts.
• Duty of labor organization and its officers to communicate the following:
o Provisions of its constitution and by-laws
o CBA
o Prevailing labor relations system
o All other rights and obligations provided by existing labor laws.
• Jurisdiction
o Bureau – Violation on Article 250 to mete the appropriate penalty
which was reported by at least 30% of union members.
▪ Cancellation of union registration
▪ Expulsion of officers from office
o Ordinary courts – Criminal and civil liabilities
D. Adequate machinery for expeditious dispute settlement & ways by which the
machinery ensures speedy resolution of disputes
CONST., Art. III, Sec. 16; LC, Arts. 218 A(e) & 219(i); Art. 234 (and its Impl.
Rules, DO 151-16); Arts. 227 & Art. 292(i) & E.O. 26 (1992)
Section 16. All persons shall have the right to a speedy disposition of their cases before
all judicial, quasi-judicial, or administrative bodies.
Article 218. Declaration of Policy. - A. It is the policy of the State:
(e) To provide an adequate administrative machinery for the expeditious
settlement of labor or industrial disputes;
• (Ano) Agencies created:
o NLRC – Court for labor disputes
o NCMB – Strikes and notices
o VA – Usually a private firm
9
 o BLR – Handles intra-union disputes
o Regional offices – Execution of labor laws and other jurisdicition
provided by law
o POEA
o SOLE- Strikes that involves national interest
o SEA Desk
• (Ano) ||| What is the process for SENA???
Article 219. Definitions. - (i) "Company union" means any labor organization whose
formation, function or administration has been assisted by any act defined as unfair labor
practice by this Code.
Article 234. Mandatory Conciliation and Endorsement of Cases. - (a) Except as provided
in Title VII-A, Book V of this Code, as amended, or as may be excepted by the Secretary of
Labor and Employment, all issues arising from labor and employment shall be subject to
mandatory conciliation-mediation. The labor arbiter or the appropriate DOLE agency or
office that has jurisdiction over the dispute shall entertain only endorsed or referred cases
by the duly authorized officer.
(b) Any or both parties involved in the dispute may pre-terminate the
conciliation-mediation proceedings and request referral or endorsement to the
appropriate DOLE agency or office which has jurisdiction over the dispute, or if both
parties so agree, refer the unresolved issues to voluntary arbitration.
• (Ano) Exceptions to mandatory conciliation
o Law prescribe conciliation and mediation or other ADR methods as
principal methods
▪ Strike notice
▪ Unresolved grievance dispute
o Serious violation of law
▪ Violation of alien permit laws
▪ Violation of child workforce laws.
DO 151-16
Article 227. Technical Rules not Binding and Prior Resort to Amicable Settlement. - In
any proceeding before the Commission or any of the Labor Arbiters, the rules of evidence
prevailing in courts of law or equity shall not be controlling and it is the spirit and
intention of this Code that the Commission and its members and the Labor Arbiters shall
use every and all reasonable means to ascertain the facts in each case speedily and
objectively, without regard to technicalities of law or procedure, all in the interest of due
process. In any proceeding before the Commission or any Labor Arbiter, the parties may
be represented by legal counsel but it shall be the duty of the Chairman, any Presiding
Commissioner or Commissioner or any Labor Arbiter to exercise complete control of the
proceedings at all stages.
Any provision of law to the contrary notwithstanding, the Labor Arbiter shall
exert all efforts towards the amicable settlement of a labor dispute within his jurisdiction
on or before the first hearing. The same rule shall apply to the Commission in the exercise
of its original jurisdiction.
Article 292. Miscellaneous Provisions. - (i) To ensure speedy labor justice, the periods
provided in this Code within which decisions or resolutions of labor relations cases or
matters should be rendered shall be mandatory. For this purpose, a case or matter shall
be deemed submitted for decision or resolution upon the filing of the last pleading or
memorandum required by the rules of the Commission or by the Commission itself, or the
Labor Arbiter, or the Director of the Bureau of Labor Relations or Med-Arbiter, or the
Regional Director.
Upon expiration of the corresponding period, a certification stating why a
decision or resolution has not been rendered within the said period shall be issued
forthwith by the Chairman of the Commission, the Executive Labor Arbiter, or the
Director of the Bureau of Labor Relations or Med-Arbiter, or the Regional Director, as
the case may be, and a copy thereof served upon the parties.
Despite the expiration of the applicable mandatory period, the aforesaid officials
shall, without prejudice to any liability which may have been incurred as a consequence
thereof, see to it that the case or matter shall be decided or resolved without any further
delay.
E.O. 26 (1992)
Andaya v. National Labor Relations Commission, G.R. No. 157371, [July 15, 2005], 502
PHIL 151-159)
Madrio v. Atlas Fertilizer Corp., G.R. No. 241445, [August 14, 2019]
E. Industrial Peace & Tripartism
LC, Arts. 218 A(f), 290, & 292 (g); Art. 220 (2nd par.); Arts. 121 (2nd par.), 122
(4th par.), & 182(a)
Article 218. Declaration of Policy. - A. It is the policy of the State:
(f)To ensure a stable but dynamic and just industrial peace;
Article 290. Tripartism, Tripartite Conferences, and Tripartite Industrial Peace
Councils. - (a) Tripartism in labor relations is hereby declared a State policy. Towards
this end, workers and employers shall, as far as practicable, be represented in decision
and policy-making bodies of the government.
(b) The Secretary of Labor and Employment or his duly authorized
representatives may from time to time call a national, regional, or industrial tripartite
10
conference of representatives of government, workers and employers, and other interest
groups as the case may be, for the consideration and adoption of voluntary codes of
principles designed to promote industrial peace based on social justice or to align labor
movement relations with established priorities in economic and social development. In
calling such conference, the Secretary of Labor and Employment may consult with
accredited representatives of workers and employers.
(c) A National Tripartite Industrial Peace Council (NTIPC) shall be established,
headed by the Secretary of Labor and Employment, with twenty (20) representatives each
from the labor and employers' sectors to be designated by the President at regular
intervals. For this purpose, a sectoral nomination, selection, and recall process shall be
established by the DOLE in consultation with the sectors observing the 'most
representative' organization criteria of ILO Convention No. 144.
Tripartite Industrial Peace Councils (TIPCs) at the regional or industry level
shall also be established with representatives from government, workers and employers
to serve as a continuing forum for tripartite advisement and consultation in aid of
streamlining the role of government, empowering workers' and employers' organizations,
enhancing their respective rights, attaining industrial peace, and improving productivity.
The TlPCs shall have the following functions:
(1) Monitor the full implementation and compliance of concerned sectors with the
provisions of all tripartite instruments, including international conventions and
declarations, codes of conduct, and social accords;
(2) Participate in national, regional or industry-specific tripartite conferences
which the President or the Secretary of Labor and Employment may call from time to
time;
(3) Review existing labor, economic and social policies and evaluate local and
international developments affecting them;
(4) Formulate, for submission to the President or to Congress, tripartite views,
recommendations and proposals on labor, economic, and social concerns, including the
presentation of tripartite positions on relevant bills pending in Congress;
(5) Advise the Secretary of Labor and Employment in the formulation or
implementation of policies and legislation affecting labor and employment;
(6) Serve as a communication channel and a mechanism for undertaking joint
programs among government, workers, employers and their organizations toward
enhancing labor-management relations; and
(7) Adopt its own program of activities and rules, consistent with development
objectives.
All TlPCs shall be an integral part of the organizational structure of the NTIPC.
The operations of all TIPCs shall be funded from the regular budget of the
DOLE.
• What is Tripartism? - workers and employers shall, as far as practicable, be
represented in decision and policy-making bodies of the government.
• Requisites for the creation of voluntary code of principles:
o Secretary of Labor and Employment or representative call a national,
regional, or industrial tripartite conference of representatives of
government, workers and employers, and other interest groups
o for the consideration and adoption of voluntary codes
o designed to promote industrial peace based on social justice or to align
labor movement relations with established priorities in economic and
social development.
o Secretary may consult with accredited representatives of workers and
employers.
Article 292. Miscellaneous Provisions. (g) The Ministry shall help promote and gradually
develop, with the agreement of labor organizations and employers, labor-management
cooperation programs at appropriate levels of the enterprise based on shared
responsibility and mutual respect in order to ensure industrial peace and improvement
in productivity, working conditions and the quality of working life.
Article 220. National Labor Relations Commission. - Eight (8) members each shall be
chosen only from among the nominees of the workers and employers organizations,
respectively. The Chairman and the seven (7) remaining members shall come from the
public sector, with the latter to be chosen preferably from among the incumbent labor
arbiters.
• 8 members from workers and employers organizations.
• Chairman and 7 members from the public sector, with the latter to be chosen
preferably from among the incumbent labor arbiters.
Article 121. Powers and Functions of the Commission. - The Commission shall be
composed of the Secretary of Labor and Employment as ex-officio chairman, the Director-
General of the National Economic and Development Authority (NEDA) as ex-o ff icio vice-
chairman, and two (2) members each from workers and employers sectors who shall be
appointed by the President of the Philippines upon recommendation of the Secretary of
Labor and Employment to be made on the basis of the list of nominees submitted by the
workers and employers sectors, respectively, and who shall serve for a term of five (5)
years. The Executive Director of the Commission shall also be a member of the
Commission.
• Composition of commission:
o Secretary of labor and employment (ex-officio chairman)
o Director general of NEDA (ex-officio vice chairman)
o 2 members from workers and employers appointed by president, upon
recommendation of Secretary of labor and employment
o Executive director of the commission
• Aforesaid appointed persons shall serve for a period of 5 years.
11
Article 122. Creation of Regional Tripartite Wages and Productivity Boards. - Each
Regional Board shall be composed of the Regional Director of the Department of Labor
and Employment as chairman, the Regional Directors of the National Economic and
Development Authority and the Department of Trade and Industry as vice-chairmen and
two (2) members each from workers and employers ' sectors who shall be appointed by
the President of the Philippines, upon the recommendation of the Secretary of Labor and
Employment, to be made on the basis of the list of nominees submitted by the workers'
and employers' sectors, respectively, and who shall serve for a term of five (5) years .
• Composition of RTWPB
o Regional director of DOLE (Chairman)
o Regional director of NEDA (Vice-chairman)
o 2 members from workers and employers appointed by president, upon
recommendation of Secretary of labor and employment
• Aforesaid appointed persons serve for a period of 5 years
Article 182. Employees' Compensation Commission. - (a) To initiate, rationalize, and
coordinate the policies of the employees' compensation program, the Employees'
Compensation Commission is hereby created to be composed of five ex-officio members,
namely : the Secretary of Labor and Employment as Chairman, the GSIS General
Manager, the SSS Administrator, the Chairman of the Philippine Medical Care
Commission, 146 and the Executive Director of the ECC Secretariat, 147 and two
appointive members, one of whom shall represent the employees and the other, the
employers, to be appointed by the President of the Philippines for a term of six years. The
appointive member shall have at least five years' experience in workmen's compensation
or social security programs. All vacancies shall be filled for the unexpired term only.
• Composition of ECC
o Secretary of labor and employment (Chairman)
o GSIS general manager
o SSS Administrator
o Chairman of Philippine Medical Care commission
o Executive director of ECC secretariat
o Appointive member representing employees appointed by president
o Appointive member representing employers appointed by president
• Appointed persons serve for a period of 6 years.
F. Worker participation in decision and policy making processes affecting
rights, duties and welfare
LC, Arts. 218 A(g), & 267, par. 2; R.A. No. 6971, Sec. 5
Article 218. Declaration of Policy. - A. It is the policy of the State:
(g) To ensure the participation of workers in decision and policy-making
processes affecting their rights, duties and welfare.
Article 267. Exclusive Bargaining Representation and Workers' Participation in Policy
and Decision-Making. - Any provision of law to the contrary notwithstanding, workers
shall have the right, subject to such rules and regulations as the Secretary of Labor and
Employment may promulgate, to participate in policy and decision-making processes of
the establishment where they are employed insofar as said processes will directly affect
their rights, benefits and welfare. For this purpose, workers and employers may form
labor-management councils: Provided, That the representatives of the workers in such
labor-management councils shall be elected by at least the majority of all employees in
said establishment.
R.A. No. 6971, Sec. 5
Section 5. Labor-Management Committee. - a) A business enterprise or its employees,
through their authorized representatives, may initiate the formation of a labor-
management committee that shall be composed of an equal number of representatives
from the management and from the rank-and-file employees: Provided, That both
management and labor shall have equal voting rights: Provided, further, That at the
request of any party to the negotiation, the National Wages and Productivity Commission
of the Department of Labor and Employment shall provide the necessary studies,
technical information and assistance, and expert advice to enable the parties to conclude
productivity agreements.
b) In business enterprises with duly recognized or certified labor organizations,
the representatives of labor shall be those designated by the collective bargaining agent(s)
of the bargaining unit(s).
c) In business enterprises without duly recognized or certified labor
organizations, the representatives of labor shall be elected by at least a majority of all
rank-and-file employees who have rendered at least six (6) months of continuous service.
Philippine Airlines, Inc. v. NLRC, 225 SCRA 301 (1993)
G. Contra: Management Prerogatives (MP)
1. MP: basis;
CONST., Art. II, Sec. 20 and Art. XIII, Sec. 3, par. 4;
Section 20. The State recognizes the indispensable role of the private sector, encourages
private enterprise, and provides incentives to needed investments.
Section 3. The State shall regulate the relations between workers and employers,
recognizing the right of labor to its just share in the fruits of production and the right of
enterprises to reasonable returns on investments, and to expansion and growth.
2. MP: definition and scope
12
 ILO Convention No. 98 (Application of the Principles of the
Chu v. NLRC, 232 SCRA 764 (1994); Right to Organize and Bargain Collectively, 1949);

International Covenant on Economic, Social and Cultural

San Miguel Brewery Sales Force Union (PTGWO) v. Ople, 170 SCRA 25 (1989); Rights, Arts. 2 and 8 (a);

International Covenant on Civil and Political Rights, Art. 22

Philippine Airlines, Inc. v. NLRC, 225 SCRA 301 (1993);

3. MP: limits B. Extent and scope of right

SHS Perforated Materials, Inc. v. Diaz, 633 SCRA 258 (2010); Republic Savings Bank v. CIR, 21 SCRA 226 (1967);

LC, Art. 257

Capin-Cadiz v. Brent Hospital and Colleges, Inc., G.R. No. 187417, February 24, 2016;
Victoriano v. Elizalde Rope Workers’ Union, G.R. No. L-25246, September 12, 1974

Supreme Steel Corp. v. Nagkakaisang Manggagawa Ng Supreme Independent Union Reyes v. Trajano, 209 SCRA 484 (1992)
(Nms-Ind-Apl), G.R. No. 185556, March 28, 2011;
Kapatiran v. Calleja, 162 SCRA 367 (1988)

PLDT v. Paguio, G.R. No. 152689, October 12, 2005; Pan-Am World Airways, Inc. v. Pan-Am Employees Assn., 27 SCRA 1202 (1969)

C. Workers with right of self-organization

Businessday Information Systems and Services, Inc. v. NLRC, 221 SCRA 9 (1993)
CONST., Art. III, Sec. 8
Part II – The Right to Self-Organization
Art. XIII, Sec. 3
A. Bases of right
1. All employees
1. Constitution
LC, Art. 253, 219(f), & 292(c)
CONST., Art. III, Sec. 8;
2. Government employees
Art. XIII, Sec. 3;
CONST., Art. IX-B, Sec. 2(1) & (5);
Art. IX(B), Sec. 2(5)
LC, Art. 254; E.O. No. 180 (June 1, 1987)
2. Labor code

LC, Arts. 257, 258, and 260, 284 & 285 3. Supervisors

3. International convention LC, Art. 255 & Art. 219 (m)

ILO Convention No. 87 (Freedom of Association & Protection Cathay Pacific Steel Corporation v. CA, G.R. No. 164561, August 30, 2006
of Right to Organize, 1948);

13
Filoil Refinery Corporation v. Filoil Supervisory and Confidential Employees Implementing Rules (IR), Book V, Rule II, Sec. 2, par. 3
Association, 46 SCRA 512 (1972)
7. Sanctions for Violation of Right
4. Aliens
LC, Arts. 259, 260, 261, 303-304)
LC, Arts. 284 & 285;
IR, Book V, Rule XXII, Sec. 15
Book V, Rule 2, Sec. 2, par. 1, 3rd sentence, as amended by
D.O. No. 40-C-05.

D. Excluded employees/workers

1. Managerial employees

LC, Arts. 255 & 219(m)

Paper Industries Corp. v. Laguesma, G.R. No. 101738, April 12, 2000.

2. Confidential employees

Metrolab Industries, Inc. v. Roldan-Confesor, 254 SCRA 182 (1996)

Tunay na Pagkakaisa ng Manggagawa sa Asia Brewery vs. Asia Brewery, Inc., G.R. No.
162025, August 3, 2010

San Miguel Foods, Inc. vs. San Miguel Corp. Supervisors and Exempt Union, G.R. No.
146206, August 1, 2011

3. Workers-Members of a Cooperative

Batangas I Electric Cooperative v. Young, G.R. No. 62386, November 9, 1988

4. Employees of international organizations

International Catholic Migration Commission v. Calleja, 190 SCRA 130 (1990)

5. Effect of Including Employees Outside the Bargaining Unit

LC, Art. 256

Samahang Manggagawa sa Charter Chemical v. Charter Chemical and Coating

Corporation, G.R. No. 169717, March 16, 2011

6. Non-Employees

LC, Art. 253

14