Labor Relations 1

regulating the relations between the employers and employees by means of agreements freely entered into

ARTICLE 211. Declaration of Policy. -

through collective bargaining, no court or administrative agency or official shall have the power

A. It is the policy of the State: (a) To promote and emphasize the primacy of free collective bargaining and negotiations, including voluntary arbitration, mediation and conciliation, as modes of settling labor or industrial disputes; (b) To promote free trade unionism as an instrument for the enhancement of democracy and the promotion of social justice and development; (c) To foster the free and voluntary organization of a strong and united labor movement; (d) To promote the enlightenment of workers concerning their rights and obligations as union members and as employees; (e) To provide an adequate administrative machinery for the expeditious settlement of labor or industrial disputes; (f) To ensure a stable but dynamic and just industrial peace; and (g) To ensure the participation of workers in decision and policy-making processes affecting their rights, duties and welfare. B. To encourage a truly democratic method of

to set or fix wages, rates of pay, hours of work or other terms and conditions of employment, except as otherwise provided under this Code. (As amended by Section 3, Republic Act No. 6715, March 21, 1989). Labor Relations: interactions between the employer and employees or their representatives and the mechanism by which the standards and other terms and conditions of employment are negotiated, adjusted and enforced. o Vs. Labor Standards: minimum terms and conditions of employment to which employees are entitled and to which employers must comply. Process of employee participation is the crux of labor relations. o No employer-employee relations, no labor relations. o Process starts when workers organize. Work stoppages strikes if done by employees, lockouts if done by employers- are not favored in law. CBA must be ratified by employees and registered in order for the employers and employees to acquire rights that are legally demandable, but non-registration does not invalidate it, as it is binding between them. Labor or trade union: a combination of workmen organized for the purpose of securing through united action the most favorable conditions as regards labor standards (wages, hours of work, etc.)

Not all labor organizations are labor unions, but all labor unions are labor organizations. Why workers organize: o Self-advancement o Job security o Rule of law against the employers exercise of power o Sense of participation ILO convention no. 87 o Right to join organizations o Draw up constitutions and rules o Refrain from any interference (public authorities) that restricts right

(e) Employer includes any person acting in the interest of an employer, directly or indirectly. The term shall not include any labor organization or any of its officers or agents except when acting as employer. (f) Employee includes any person in the employ of an employer. The term shall not be limited to the employees of a particular employer, unless the Code so explicitly states. It shall include any individual whose work has ceased as a result of or in connection with any current labor dispute or because of any unfair labor practice if he has not obtained any other substantially equivalent and regular employment. (g) Labor organization means any union or

Constitutional bases for Labor relations: See Constitution, list here.

ARTICLE 212. Definitions. (a) Commission means the National Labor Relations Commission or any of its divisions, as the case may be, as provided under this Code. (b) Bureau means the Bureau of Labor Relations and/or the Labor Relations Divisions in the regional offices established under Presidential Decree No. 1, in the Department of Labor. (c) Board means the National Conciliation and Mediation Board established under Executive Order No. 126. (d) Council means the Tripartite Voluntary Arbitration Advisory Council established under Executive Order No. 126, as amended.

association of employees which exists in whole or in part for the purpose of collective bargaining or of dealing with employers concerning terms and conditions of employment. (h) Legitimate labor organization means any labor organization duly registered with the Department of Labor and Employment, and includes any branch or local thereof. (i) Company union means any labor organization whose formation, function or administration has been assisted by any act defined as unfair labor practice by this Code. (j) Bargaining representative means a legitimate labor organization whether or not employed

by the employer. (k) Unfair labor practice means any unfair labor practice as expressly defined by the Code. (l) Labor dispute includes any controversy or matter concerning terms and conditions of employment or the association or representation of persons in negotiating, fixing, maintaining, changing or arranging the terms and conditions of employment, regardless of whether the disputants stand in the proximate relation of employer and employee. (m) Managerial employee is one who is vested with the powers or prerogatives to lay down and execute management policies and/or to hire, transfer, suspend, lay-off, recall, discharge, assign or discipline employees. Supervisory employees are those who, in the interest of the employer, effectively recommend such managerial actions if the exercise of such authority is not merely routinary or clerical in nature but requires the use of independent judgment. All employees not falling within any of the above definitions are considered rank-and-file employees for purposes of this Book. (n) Voluntary Arbitrator means any person accredited by the Board as such or any person named or designated in the Collective Bargaining Agreement by the parties to act as their Voluntary Arbitrator, or one chosen with or without the assistance of the National Conciliation and Mediation Board, pursuant

to a selection procedure agreed upon in the Collective Bargaining Agreement, or any official that may be authorized by the Secretary of Labor and Employment to act as Voluntary Arbitrator upon the written request and agreement of the parties to a labor dispute. (o) Strike means any temporary stoppage of work by the concerted action of employees as a result of an industrial or labor dispute. (p) Lockout means any temporary refusal of an employer to furnish work as a result of an industrial or labor dispute. (q) Internal union dispute includes all disputes or grievances arising from any violation of or disagreement over any provision of the constitution and by laws of a union, including any violation of the rights and conditions of union membership provided for in this Code. (r) Strike-breaker means any person who obstructs, impedes, or interferes with by force, violence, coercion, threats, or intimidation any peaceful picketing affecting wages, hours or conditions of work or in the exercise of the right of selforganization or collective bargaining. (s) Strike area means the establishment, warehouses, depots, plants or offices, including the sites or premises used as runaway shops, of the employer struck against, as well as the immediate vicinity actually used by picketing strikers in moving to and fro before all points of entrance to and exit from

said establishment. (As amended by Section 4, Republic Act No. 6715, March 21, 1989). Additional terms and points: Difference between managerial employee and rank-and-file employee: o Managerial and supervisory not included in labor standards benefits under Art. 82. o Jumuad case: managerial and supervisory employees can be dismissed without need for substantial evidence for reasons of loss of confidence and breach of trust. Rankand-file employees cannot be dismissed without substantial evidence or occupying a position of confidence (personal secretary, etc.) o Managerial and supervisory cannot join labor unions. Inter-union dispute: happens when two or more unions compete against each other for representation of the companys employees. Intra-corporate controversy: one which pertains to any of the following relationships: (1) between the corporation, partnership or association and the public; (2) between the corporation, partnership or association and the State in so far as its franchise, permit or license to operate is concerned; (3) between the corporation, partnership or association and its stockholders, partners, members or officers; and (4) among the stockholders, partners or associates themselves. Substantial evidence: amount of relevant evidence which a reasonable mind might accept as sufficient to justify a conclusion. Wages: compensation or remuneration capable of being expressed in monetary terms given by an employer to an employee under a written or unwritten contract of employment; includes commissions, facilities and supplements. Social legislation: the humanization of laws and the equalization of social forces; laws that

provide particular kinds of protection or benefits to society or segments thereof in furtherance of social justice. Kinds of Labor Disputes: 1. Labor Standards disputes: a. Benefits b. Working conditions c. Compensation 2. Labor Relations disputes: a. Organizational rights dispute/ULP - ULP: any act intended or directed to weaken or defeat the workers rights to self-organize or engage in lawful concerted activities. b. Representation disputes c. Bargaining disputes d. Contract administration e. Employment tenure dispute Remedies in labor disputes: Grievance procedure: in-house adjustment of the complaint, problem or dispute following the steps prescribed in the CBA policy. Conciliation: a disinterested third party meets with management and labor, and by cooling tempers, aids in reaching an agreement. Mediation: a third party studies each side of the dispute and makes a proposal for the disputants to consider. o Like conciliator, mediator cannot adjudicate. o Conciliation and mediation are usually done by members of the National Conciliation and Mediation Board. Enforcement/compliance order: an act of the secretary of Labor in accordance with his visitation powers to enforce labor laws. Certification of bargaining representatives: done by Med-Arbiters of DOLE regional offices;

determination of which contending unions shall represent employees in collective bargaining. Arbitration: submission of a dispute to an impartial person for determination on the basis of evidence and argument of the parties. o Involves adjudication; decision is enforceable among the parties. o Issue submitted for adjudication cannot be the subject of strike or lockout (sabotage). Voluntary: submission of the dispute is by agreement of the parties. Award is final and unappealable, except through certiorari. Compulsory submission is by directive of law. Done by LArb; decision is appealable to ther NLRC, then CA through certiorari. Assumption of jurisdiction: authority of the Sec. of DOLE or President to decide a dispute causing or likely to cause a strike or lockout in an industry indispensable to national interest. Certification to NLRC: action of the Secretary of Labor empowering NLRC to compulsorily arbitrate a dispute causing or likely to cause a lockout in an industry indispensable to the national interest. Injunction extraordinary remedy not favored in labor law, a writ of injunction is issued to stop or restrain an actual or threatened commission of prohibited or unlawful acts or to require the performance of an act to prevent grave or irreparable damage to any party or render ineffectual any decision in favor of such party. Judicial action complaint filed with regular courts in cases falling under its jurisdiction. Compromise agreement in any stage of any of these settlement processes, the labor dispute may be resolved by the parties through a compromise agreement, subject to the approval of the authority before whom the case is

pending and the requirements of autonomy and validity of contracts. Art. 213: NLRC NLRC attached to DOLE for program and policy coordination only. Chairman and 23 members, 8 from the workers organizations (KMU, TUCP, etc.), 8 from employers organizations (Chinese Chamber of Commerce, etc.), and Chairman and 7 other members from the public sector. o Employers and workers representatives must divest themselves of any affiliation or interest in the association to which they belong upon assumption of office. o NLRC may sit en banc or in 8 divisions of 3 members each. En banc: no adjudicatory power, only policy-making and administrative power, also the power to transfer cases from one docket to another in emergency or temporary basis, for as long as no additional costs are entailed on the part of the litigants. Cases raffled off; division in NCR may handle case from Cebu, etc. In division: Adjudication Concurrence of 2 members needed. o If one member inhibits, no special division will be created, as long as there is concurrence. o If there is no concurrence, a special division will be created by the

Chairman, but he must first ascertain from which sector the membership is lacking, and he can only assign a commissioner from that same sector. First to sixth division shall handle cases from the NCR; 7th and 8th will handle Visayas and Mindanao, respectively. Divisions shall have exclusive appellate jurisdiction over cases within their respective territorial jurisdiction. Mandatory for decision to meet for consultation prior to rendering and writing of decision. Chairman is the presiding commissioner of the 1st commission, 7 other members from the public sector shall be the presiding commissioners over the other commissions. o Absence or incapacity of Chairman: presiding commissioner of the 2nd division shall be the acting chairman. o Chairman aided by Executive Clerk shall have exclusive administrative supervision over the Comm and its regional branches and all personnel, including L. Arbs. Commission en banc: assisted by the same Executive Clerk, and when acting through its divisions, by said clerk for its 1st division and 7 other deputy clerks for the remaining divisions, in performance of such functions and duties as are discharged by the Clerk of Corut and Deputy Clerk of Court of the CA. o ExClerk is little Chairman.

F(x): issue entry of judgment, manage records, mail decisions, assist with administrative concerns. Commission Attorneys: assist the commission in its appellate and adjudicatory functions. o Members of the bar o At least 1 year experience or exposure in the field of labor management relations o Salary grade 26 o Number in no case more than 3 assigned to the office of the chairman and each commissioner. o Term coterminous with the commissioners they are assigned. o Cannot be performed by a LArb.

Art. 214. Headquarters, branches and provincial extension units 1-6: NCR, 7 and 8: Cebu and CdO As many regional branches as there are regional offices of the DOLE, sub-regional branches or extension units. As many Larbs as necessary for the effective and efficient operation of the Commission. Rules of Court supplementary to NLRC Rules of Procedure

Art. 215: Appointment and qualifications: Chariman and Commissioners: o Members of the bar o Practice of law for fifteen years o 5 years experience or exposure in the field of labor management relations o Hold office during good behavior until 65, unless sooner removed for cause as provided by law or become incapacitated to discharge the f(x) of their offices. President may extend the services of the Commissioner up to 70 upon the recommendation of the Commission en banc.

Recommendation not really needed, President can do on his own. Chairman, Division Presiding Commissioners and other Commissioners shall be appointed by the President. Appointment to any vacancy in any specific division shall come only from the nominees of the sector which nominated the predecessor. Larbs appointed by the President upon recommendation of the Commission en banc to a specific arbitration branch preferably in the region where they are residents, and be subject to CS Law, rules and regulations. o LArbs presently holding office in the region where they are residents shall be deemed appointed thereat. o Chairman and Commission shall appoint staff and employees of the Commission and its regional branches as the needs of the service may require. No confirmation from the COA required for appointments. RTCs can no longer issue injunction against LArbs, as they are co-equal.

5. cases from violations of Art. 264 of this code, including the question of legality of strikes or lockouts. 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 5000 regardless of whether accompanied with a claim for reinstatement. 7. Money claims arising out of employer-employee relationship or by virtue of any law or contract, involving Filipino workers for overseas deployment, including claims for actual, moral, exemplary and other forms of damages, as well as employment termination of OFWs. 8. Wage distortion disputes in unorganized establishments not voluntarily settled by the parties pursuant RA 6727 as reflected in Art. 124.

9. Enforcement of compromise agreements when there is non-compliance by any of the parties pursuant to Art. 227 of the Labor Code, as amended. 10. Other cases as may be provided by law.

Art. 217. Powers and Jurisdiction of the Labor Arb: Exclusive and orginal jurisdiction, to hear and decide, within 30 calendar days after the submission of the case by the parties, without extension, even in the absence of stenographic notes, the following cases involving all workers, whether agricultural or non-agricultural: 1. Unfair labor practices 2. Termination disputes 3. cases workers may file involving wages, rates of pay, hours of work, and other terms and conditions of employment, if accompanied by a claim for reinstatement. 4. claims for actual, moral, exemplary and other forms of damages arising from the employeremployee relations.

Commission shall have exclusive appellate jurisdiction over cases decided by the LArbs. Cases arising from interpretation of CBA and those arising from interpretation or enforcement of company personnel policies Arbitration in this article is compulsory. NLRC appellate proceedings not a part of arbitration. A LArb is the representative a=of the NLRC in the RAB (Regional Arbitration Branch). o About 200 LArbs. o When LArb renders decision, arbitration is deemed terminated. Proceedings before the NLRC non-litigious I nature; not bound by the rules of procedure.

Save for a[peal, which is a statutory right. The cases falling under the jurisdiction of the LArb can be resolved through voluntary arbitrator or panel of voluntary arbitrators. o Parties can also submit to VArbs all other disputes concerning ULP and bargaining deadlocks.

Hawaiian-Philippine v. Gulmatico: Union of sugar farm workers filed claims against Hawaiian under RA 809 (Sugar Act of 1952). Hawaiian contended that it was outside of the LArbs jurisdiction because of lack of EREE relationship; centrals had no privity with plantation laborers, since they ahd their own laborers to take care of. Held: no ER-EE relationship, hence, not within jurisdiction of LARb. Venue: cases within the jurisdiction fo LArb filed in the branch which has jurisdiction over the workplace. o Workplace: place or locality where employee is regularly assigned at the time the cause of action arose. Includes place where employee is supposed to report back after travel. Field employees and ambulant/itinerant workers: where they are regularly assigned or where they are supposed to receive their salaries, wages and wage instructions, and report the results of their assignment to their employers. Where two or more RAbs have jurisdiction, branch that first acquired jurisdiction shall exclude all others. When venue is not objected to before the filing of the position papers, such shall be deemed waived.

Transfer or change of venue: written agreement of the parties or when the Commission or the LArb before whom the case is pending so orders, upon motion by the proper party. Cases involving OFWs: branch where the complainant resides or where the principal office of any of the respondents is situated, at the option of the complainant. Workers option: o Dayag v. Canizares: Workplace in Cebu, employers place of business also in Cebu, but laborers reside in Manila. Where should they file their complaint, Cebu or Manila? Held: permissive rules underlying provisions on venue are intended to assure convenience for the plaintiff and his witnesses and promote the ends of justice, since worker is economically-disadvantaged party. o Benefit may be waived by worker.

1. ULP cases: Natl Union of Bank Employees v. Lazaro: CBTC entered into a CBA with Union representing rank-and-file employees. The agreement was to be effective until june 30, 1980, with an automatic renewal clause until the parties execute a new agreement. May 30: Union submitted to bank some proposals for renegotiation. Bank suspended negotiations next day because it had entered into a merger with BPI, which assumed all obligations of CBTC. Union filed with CFI a complaint for specific performance, damages, preliminary injunction. Court dismissed for lack of jurisdiction. Held: Dismissal was proper. Civil aspects involving ULP, including damages and other affirmative relief, fall within the jurisdiction of Larb. Only gross violations of a CBA are considered ULP.If not gross, not ULP.

2. Termination Disputes: is the dismissal of an employee an enforcement of personnel policy and should therefore be brought to a Varb instead of a LArb (217, last paragraph)? Held: Not necessarily. Company policies are guiding principles that express the beliefs or philosophy of the top authority, while the usual sources of grievances are rules and regulations governing disciplinary actions. Discharges due to company policies need not be subject to grievance machinery or varbitration (San Miguel v. NLRC). Does a LArb have jurisdiction over an illegal dismissal complaint filed by a church minister?(Austria v. NLRC) Held: Yes. Labor Code applies to all, whether for profit or not. Issue was dismissal and not a purely secular matter; therefore, principle of separation of state and church not violated. While case relates to a church and its minister, it does not ipso facto give it religious significance. LArb has no jurisdiction over intra-corporate disputes. o Arising out of intra-corporate or partnership relations, between and among all stockholders, members or associates; o Between any or all of them and the corporation, partnership or associates of which they are stockholders, members or associates, respectively o Between such corporation and the state insofar as it concerns their individual franchise or right to exist as such entity. o Those arising from election or appointment of directors, trustees, officers, managers of such corporations. A corporate officers dismissal is always a corporate act, or an extra-corporate controversy and the nature is not altered by the reason or wisdom with which the BoD may have in taking the course of action (Dy v. NLRC). NLRC still has jurisdiction even if the complaint is accompanied with claims for damages. Mainland v. Movilla: better policy in determining whether SEC has jurisdiction:

Movilla was an accountant of Mainland Corp and was registered with the SSS, Medicare and ECC. He was elected member of the board. DOLE conducted an inspection and found several labor law violations. DOLE ordered Mainland to pay its 13 employees including Movilla unpaid holiday, service leave, etc. All except Movilla were paid, so Movilla filed a complaint with the LArb. During the pendency of the bcase, he died and was substituted by his heirs. LArb dismissed due to lack of jurisdiction. Who had jurisdiction, SEC or NLRC? Held: NLRC. The fact that the parties involved are all stockholders does not necessarily place the issue within the ambit of the jurisdiction of the NLRC. The better policy is to consider concurrent factors such as the status or relationship of the parties or the nature of the question that is the subject of the controversy. It does not necessarily follow that every conflict between the corporation and its stockholders would involve only corporate matters. Factors to consider for SEC to have jurisdiction: dispute must be between o Corporation and the public o Corporation and its stockholders, partners, officers o Corporation and the State as far as its franchise/permit to operate is concerned o Among the stockholders themselves. Test: whether there was a change in the nature of his function and not merely in the nomenclature of his job.

Tabang v. NLRC: disregarded Movilla; said there was no distinction, qualification or exemption whatsoever as to an intra-corporate controversy. Nacpil v. IBC: tests to determine whether SEC has jurisdiction: status or relationship of the parties, nature of the question that is the subject of controversy. Villanueva: corporate officers do not enjoy security of tenure an open constitutional question.

When Bank Officer may be regular employee: when work is connected to the usual trade or business of the employer, and there is considerable length of service, and not because of the mode or even the reason for hiring them.

Some issues LArb may decide: a. whether alleged reason for strike is strikeable b. whether strike procedure is followed c. whether strikers prohibited acts.

8. Money Claims: requisites: a. arising out of employer-employee relations b. excepting SSS, Medicare or ECC c. accompanied with a claim for reinstatement regardless of amount d. exceeds 5,000 per claimant, whether or not accompanied with a claim for reinstatement. Money claims arising from CBA violations fall within the VARB or VARB panel. Money claims must have arisen from employment. Money claims of cooperative members: generally, must be instituted with the grievance machinery as required by PD 175 (An Act Strengthening the Cooperative Movement), but if it was not shown that claimants are members of coop, no. Also, if dispute is about payment of wages, ot, rest day, termination, no. An employee who claims moral damages for dismissal must institute the same with the LArb and not with the civil courts; splitting of actions is not allowed, and LArb jurisdiction covers all cases of damages arising from ER-EE relationship. o If adjudged by LArb, said judgment operates as a barto his action for damages before the civil court no person may recover upon the same cause of action twice. o Employers claim for damages may be filed as counterclaim with the LArb. Since it arises from ER-EE relationship, it is not within jurisdiction of civil courts.

But the power to issue injunction is with the NLRC and not with the LArb. National interest cases are handled differently DOLE or President assumes jurisdiction or endorses to NLRC. Clients of employers and employees are not outside of the jurisdiction of the LArb, as well as when crimes are committed during the strike.

10. OFWs money claims or dismissal: PNB v. Cabansag: While in Singapore as a tourist, Cabansag applied with PNB and was hired as branch Credit Officer. She obtained an employee pass for two years from the Singapore government. One month after her probation period, she was dismissed as part of a cost-cutting measure. When she filed a suit for illegal dismissal, her employer contended that she was a local hire hired in Singapore, therefore Singapore rules should apply. Held: Cabansags applying for an employment pass from Singapore was merely a compliance with the countrys immigration rules. The bank is a Philipppine corporation doing business through a branch in Singapore, and her employment had to be approved by the President in manila. This reinforces the fact that she was a migrant worker. Whther employed locally or overseas, all employees enjoy the protective mantle of Philippine labor and social legislation, contract stipulations to the contrary notwithstanding.

11. Wage distortion A salary distortion case (Art. 124) is resolved either through the CBA mechanism or, in unorganized elements, through the NCMB. If the NCMB fails in ten days of conciliation conferences, it shall be referred to the appropriate branch of NLRC.

9. Strikes and lockouts:

12. Disputes over compromise settlements: LArb may assume jurisdiction if there is noncompliance with the compromise agreement or there is prima facie evidence that the agreement was obtained through fraud or coercion, misrepresentation or other vice. Notes: A party cannot invoke the jurisdiction of a court and then question it later when he gets an unfavorable judgment.

- rules must not be in conflcit with the provisions of the Labor Code. Power to issue compulsory process: a. administer oaths b. summon parties c. Issue subpoena duces tecum and ad testificandum

Not subject to jurisdiction: 1. Foreign governments (par in parem non habet imperium- an equal has no power over an equal) restricted to government or sovereign activities (jure imperii) and not to commercial, private or proprietary acts (jure gestionis). 2. UN and its specialized agencies, unless immunity has been waived (expressly or by suing) 3. Money claims against the government applies. COA has power. - CA 327

4. Local water districts quasi-public corporations whose employees belong to the Civil service, except where NLRC jurisdiction is invoked (estoppel) by the water district. RA 6715 has retroactive application.

Art. 218: powers of the Commission Art. 219: ocular inspection Larb: may inspect only if there is a case pending before the RAB.

Rule-making power: power to enforce rules: a. governing the hearing and disposition of cases before it and its regional branches b. pertaining to its internal functions c. necessary to carry out the purposes of this code. - rules have the force and effect of law.