Art. 243. Coverage and employees right to selforganization.

All persons employed in

commercial,
industrial
and
agricultural
enterprises and in religious, charitable, medical,
or educational institutions, whether operating
for profit or not, shall have the right to selforganization and to form, join, or assist labor
organizations of their own choosing for purposes
of collective bargaining. Ambulant, intermittent
and itinerant workers, self-employed people,
rural workers and those without any definite
employers may form labor organizations for
their mutual aid and protection. (As amended by
Batas Pambansa Bilang 70, May 1, 1980)

Peace Act which withheld the right to organize from

employees of nonprofit firms.

Right to organize is not given exclusively to

employees. Even workers who are not employees of
any particular employer may form organization and
protect their interests.

Supervisors are allowed to organize, but they cannot

form, join or assist a rank-and-file union.

Examples: Movie actors and actresses have their

organization although most of them have no
particular employer. Young presidents as well as
retired generals have their organizations too.

Under Art. 254, managerial employees regardless of

the kind of organization where they are employed,
may not join, assist or form any labor organization,
meaning a labor union. Managerial employees
cannot, in the absence of an agreement to the
contrary, be allowed to share in concessions
obtained by the labor union during the negotiations
to the detriment of the employer. However, there is
nothing to prevent the employer from granting
benefits to managerial employees equal to or higher
than those afforded to union members.

Managerial employee as one who is vested with

powers or prerogatives to lay down and execute
management policies and/or to hire, transfer,
suspend, lay-off, recall, discharge, assign or
discipline employees, or to effectively recommend
such managerial actions.

Under Art. 252(243), right to organize refers to

forming, joining or asssisting a labor organization
which is granted to all kind of employees of all
kinds of employers public or private, profit or
nonprofit, commercial or religious. The usual form
is a UNION and the usual purpose is collective
bargaining with their employers.

Employees are considered occupying

managerial positions if they meet all of the
following conditions, namely:

Connected to Art. 256 this right carries with it the

right to engage in group action provided it is
peaceful to support the organizations objective
which is not necessarily collective bargaining but
simply to aid and protect its members. This kind of
group action must be differentiated from a srike
which must observe certain regulations because it is
work stoppage.

2) They customarily and regularly direct the

work of two or more employees therein;

The extension of the right to those employed in

traditionally nonprofi organizations like religious,
charitable, medical or educational institutions
departs from the policy under the old Industrial

1) Their primary duty consists of

management of the establishment in which
they are employed or of a department or
subdivision thereof;

3) They have the authority to hire or fire

other employees of lower rank; or their
suggestions and recommendations as to the
hiring and firing and as to the promotion or
any other change of status of other
employees are given particular weight.
Supervisory employees, as defined in
Article 212(m) 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.
RIGHT TO ORGANIZE CANNOT BE
BARGAINED AWAY
Southern Philippines Federation of Labor vs
Calleja | April 24, 1989
Although we have upheld the validity of the CBA as
the law among the parties, its provisions cannot
override what is expressly provided by law that only
managerial employees are ineligible to join, assist
or form any labor organization. Therefore,
regardless
of
the
challenged
employees'
designations, whether they are employed as
Supervisors or in the confidential payrolls, if the
nature of their job does not fall under the definition
of "managerial" as defined in the Labor Code, they
are eligible to be members of the bargaining unit
and to vote in the certification election. Their right
to self-organization must be upheld in the absence
of an express provision of law to the contrary. It
cannot be curtailed by a collective bargaining
agreement.
3. EMPLOYEES OF NONPROFIT
INSTITUTIONS
Under Article 243 of the Labor Code, the rank-andfile employees of non-profit medical institutions are
permitted to form, organize or join labor unions of
their choice for purposes of collective bargaining. If
the union has complied with the requisites provided
by law for calling a certification election, it is
incumbent upon the DOLE Regional Director to
conduct such certification election to ascertain the
bargaining representative of the hospital employees.
4. EXCEPTION: EMPLOYEE-MEMBERS OF
A COOPERATIVE
San Jose Electric Service Corporation vs. Ministry
of Labor | May 31, 1989
A cooperative is by its nature different from an
ordinary business concern being run either, by
persons, partnerships or corporations. Its owners
and/or members are the ones who run and operate
the business while the others are its employees. As
above stated, irrespective of the name of shares
owned by its members they are entitled to cast one

vote each in deciding upon the affair of the

cooperative. Their share capital earn limited
interests. They enjoy special privileges as
exemption from income tax and sales taxes,
preferential right to supply their products to State
agencies and even exemption from minimum wage
laws.
An employee of such a cooperative who is a
member and co-owner thereof cannot invoke the
right to collective bargaining for certainly an owner
cannot bargain with himself or his co-owners.
However, in so far as it involves cooperatives with
employees who are not members or co-owners
thereof, certainly such employees are entitled to
exercise the rights of all workers to organization,
collective bargaining, negotiations and others as are
enshrined in the Constitution and existing laws of
the country.
In another case, the court clarified that it is the fact
of ownership of the cooperative, and not
involvement in the management thereof, which
disqualifies a member from joining any labor
organization within the cooperative. Thus,
irrespective of the degree of their participation in
the actual management of the cooperative, all
members thereof cannot form, assist or join a labor
organization for the purpose of collective
bargaining.
But member-employees of a cooperative may
withdraw as members of the cooperative in order to
join a labor union. Membership in a cooperative is
voluntary; inherent in it is the right not to join.
While the members of a cooperative who are also
its employees cannot unionize for bargaining
purposes, the law does not prohibit them from
forming an association for their mutual aid and
protection as employees.
D.O. No. 40-03 allows and defines a workers
association as one which is organized for the
mutual aid and protection of its members or for any
legitimate purpose other than collective bargaining.
5. EXCEPTION: INTERNATIONAL
ORGANIZATIONS

A certification election cannot be conducted in an

international organization which the Philippine
Government has granted immunity from local
jurisdiction. The grant of such immunity is a
political question whose resolution by the executive
branch of government is conclusive upon the courts
International Catholic Migration Commission v.
Hon. Pura Calleja, et. al. | September 28, 1990
(1) International Organization and Specialized
AgenciesThe term "international organization"
is generally used to describe an organization set up
by agreement between two or more states. Under
contemporary international law, such organizations
are endowed with some degree of international legal
personality such that they are capable of exercising
specific rights, duties and powers. They are
organized mainly as a means for conducting general
international business in which the member states
have an interest. The United Nations, for instance,
is an international organization dedicated to the
propagation of world peace. "Specialized agencies"
are international organizations having functions in
particular fields. The term appears in Articles 57
and 63 of the Charter of the United Nations.
(2) Principles Underlying the Grant of
International
Immunities
to
International
OrganizationsThere
are
basically
three
propositions underlying the grant of international
immunities to international organizations. These
principles, contained in the ILO Memorandum are
stated thus: 1) international institutions should have
a status which protects them against control or
interference by any one government in the
performance of functions for the effective discharge
of which they are responsible to democratically
constituted international bodies in which all the
nations concerned are represented; 2) no country
should derive any national financial advantage by
levying fiscal charges on common international
funds; and 3) the international organization should,
as a collectivity of States members, be accorded the
facilities for the conduct of its official business
customarily extended to each other by its individual
member States. The theory behind all three
propositions is said to be essentially institutional in
character. "It is not concerned with the status,
dignity or privileges of individuals, but with the
elements of functional independence necessary to
free international institutions from national control

and to enable them to discharge their

responsibilities impartially on behalf of all their
members. The raison d'etre for these immunities is
the assurance of unimpeded performance of their
functions by the agencies concerned.
(3) Labors Basic Rights RemainThe immunity of
International Catholic Migration Commission
(ICMC) and the International Rice Research
Institution (IRRI) from local jurisdiction by no
means deprives labor of its basic rights, which are
guaranteed by Article II, Section 18, Article III,
Section 8, and Article XIII, Section 3, of the 1987
Constitution; and implemented by Articles 243 and
246 of the Labor Code.
(4) Certification Election Barred by ImmunityThe
immunity granted being "from every form of legal
process except in so far as in any particular case
they have expressly waived their immunity," it is
inaccurate to state that a certification election is
beyond the scope of that immunity for the reason
that it is not a suit against ICMC. A certification
election cannot be viewed as an independent or
isolated process. It could trigger off a series of
events in the collective bargaining process together
with related incidents and/or concerted activities,
which could inevitably involve ICMC in the "legal
process," which includes any penal, civil and
administrative proceedings. The eventuality of
Court litigation is neither remote and from which
international organizations are precisely shielded to
safeguard them from the disruption of their
functions. Clauses on jurisdictional immunity are
said to be standard provisions in the constitutions of
international Organizations. The immunity covers
the organization concerned, its property and its
assets...
5.1 Waiver of Immunity
Waiver of its immunity is discretionary to IRRI.
Without such express waiver the NLRC or its labor
arbiters have no jurisdiction over IRRI even in cases
of alleged illegal dismissal of any of its employees.
5.2 Foreign Workers
Foreigners, whether natural or juridical, as well as
foreign corporations are strictly prohibited from
engaging directly or indirectly in all forms of trade
union activities. However, aliens working in the

country with valid work permits may exercise the

right to self-organization if they are nationals of a
country that grants the same or similar rights to
Filipino workers. (Art. 269)
6. EXCEPTION: RELIGIOUS OBJECTORS;
IGLESIA NI CRISTO MEMBERS
Under the Industrial Peace Act (1953) which
preceded the Labor Code (and even under the
present Code) the employer and the union could
enter into a closed shop agreement which would
compel employees to become union workers as a
condition of continued employment. But in 1961
R.A. No. 3350 was passed to exempt from such
compulsory union membership the followers of any
religious sect (such as the Iglesia ni Cristo) whose
teachings forbid membership in labor unions. The
constitutionality of R.A. No. 3350 was upheld by
the Supreme Court in Victoriano v. Elizalde.
It may not be amiss to point out here that the free
exercise of religious profession or belief is superior
to contract rights. In case of conflict, the latter must,
therefore, yield to the former.

Kapatiran sa Meat and Canning Division vs

Honorable BLR Director Pura Ferrer-Calleja
p. 256
Article 244. Right of employees in the public
service. Employees of government corporations
established under the Corporation Code shall
have the right to organize and to bargain
collectively with their respective employers. All
other employees in the civil service shall have the
right to form associations for purposes not
contrary to law. (As amended by Executive
Order No. 111, December 24, 1986).
1. GOVERNMENT EMPLOYEES RIGHT TO
ORGANIZE; LIMITATIONS
The highest law of the land guarantees to
government employees the right to organize and to
negotiate, but not the right to strike.
Arizala et al. v CA | September 14, 1990
p. 256-257 summary of rules on organization

6.1 Does the Exemption Still Stand?

1.1 Limited Purpose
(1) The decision in Victoriano v. Elizalde was
promulgated on Sept. 12, 1974. At that time
that the Labor Code was already issued, and
although the Code did not carry exemption
under RA 3350, the Court cited the new
Labor Code and RA # 3350 do not repel
each other.
(2) Even if the exemption under RA 3350 is not
found under the labor code, still the
exemption can be invoked under the
freedom of religion clause in the
Constitutions Bill of Rights
(3) In Kapatiran v Calleja, the Court refused to
compel INK members to join incumbent
union.
(4) In Ebralinag v Division, SC in exempting
Jehovahs witnesses from compulsory
participation in flag ceremonies, cited the
religious objectors similar exemption from
compulsory union membership.
6.2 Iglesia Ni Cristo Members May Form and Join
Own Union

The extent of the government employees' right of

self-organization differs significantly from that of
employees in the private sector. The latter's right of
self-organization, i.e., "to form, join or assist labor
organizations for purposes of collective bargaining,"
admittedly includes the right to deal and negotiate
with their respective employers in order to fix the
terms and conditions of employment and also, to
engage in concerted activities for the attainment of
their objectives, such as strikes, picketing, boycotts.
But the right of government employees to "form,
join or assist employees organizations of their own
choosing" under Executive Order No. 180 is not
regarded as existing or available for "purposes of
collective bargaining," but simply "for the
furtherance and protection of their interests."
In other words, the right of Government employees
to deal and negotiate with their respective
employers is not quite as extensive as that of private
employees. Excluded from negotiation by
government employees are the "terms and
conditions of employment...that are fixed by law,"

it being only those terms and conditions not

otherwise fixed by law that "may be subject of
negotiation between the duly recognized
employees' organizations and appropriate
government authorities."

Professors at the University of the Philippines who

are not exercising managerial or highly confidential
functions are rank-and-file employees and may
unionize separately from the non-academic
personnel.

Declared to be 'not negotiable' are matters "that

require appropriation of funds;" e.g., increase in
salary emoluments and other allowances, car plan,
special hospitalization, medical and dental services,
increase in retirement benefits (Sec. 3, Rule VIII),
and those "that involve the exercise of management
prerogatives;" e.g., appointment, promotion,
assignment/detail, penalties as a result of
disciplinary actions, etc. (Sec. 4, Id.) Considered
negotiable are such matters as schedule of vacation
and other leaves, work assignment of pregnant
women; recreational, social, athletic, and cultural
activities and facilities, etc. (Sec. 2, Id.).

In short, the professors, associate professors and

assistant professors of the University of the
Philippines are rank-and-file employees. The full
professors,
associate
professors,
assistant
professors, instructors and the research, extension
and professional staff may, if so minded, organize
themselves into a separate collective bargaining
unit.

1.2 No Signing Bonus

Employees and officers of SSS are not entitled to
the signing bonus provided for in the collective
negotiation agreement because the process of
collective negotiations in the public sector does not
encompass terms and conditions of employment
requiring the appropriation of public funds. The
Court reminds the Social Security Commission
officials that the SSS fund is not their money
1.3 Excepted Employees
Excepted from the application of Executive Order
180, however, are members of the Armed Forces
of the Philippines, including police officers,
policemen, firemen, and jail guards (Sec. 4). For
reasons of security and safety, they are not allowed
to unionize.
A high level employee is one whose functions
are normally considered policy determining,
managerial or one whose duties are highly
confidential in nature. A managerial function refers
to the exercise of powers such as: (1) to effectively
recommend such managerial actions; (2) to
formulate or execute management policies and
decisions; or (3) to hire, transfer, lay-off, recall,
dismiss, assign or discipline employees.
1.3a Professors as rank-and-file employees

UP v. Ferrer-Calleja
Issues:
1. WON professors, associate, and assistan
professors are high-level and rank-and-file
ees.
2. WON they and other employees performing
academic function, should comprise a
bargaining unit distinct from that of nonacademic employees
HELD:
1. No. It is the University Academic Personnel
Committee composed of deans, assistants which
formulate the policies, rules and standards
respecting selection, compensation and promotion
of members of academic staff
2, The community of mutuality test has provided
the standards in determining the proper constituency
of a collective bargaining instrument.(pp. 260-261)
1.4 Right to Strike
EO No. 180 also concedes to government
employees, like their counterparts in the private
sector, the right to engage in concerted activities,
including the right to strike, the executive order is
quick to add that those activities must be exercised
in accordance with law, i.e. are subject both to
"Civil Service Law and rules" and "any legislation
that may be enacted by Congress," that "the
resolution of complaints, grievances and cases
involving government employees" is not ordinarily
left to collective bargaining or other related
concerted activities, but to "Civil Service Law and
labor laws and procedures whenever applicable;"
and that in case "any dispute remains unresolved
after exhausting all available remedies under
existing laws and procedures, the parties may

jointly refer the dispute to the (Public Sector LaborManagement) Council for appropriate action." What
is more, the Rules and Regulations implementing
Executive Order No. 180 explicitly provide that
since the "terms and conditions of employment in
the government, including any political subdivision
or instrumentality thereof and government-owned
and controlled corporations with original charters
are governed by law, the employees therein shall
not strike for the purpose of securing changes
thereof.

It is quite clear from this provision that BLR has the

original and exclusive jurisdiction on all inter-union
and intra-union conflicts. An intra-union conflict
would refer to a conflict within or inside a labor
union, and an inter-union controversy or dispute,
one occurring or carried on between or among
unions. The subject of the case at bar, which is the
election of the officers and members of the board of
KMKK-MWSS, is, clearly, an intra-union conflict,
being within or inside a labor union. It is well
within the powers of the BLR to act upon.

2. REGISTRATION

4. WHEN PSLMC MAY RULE ON LEGALITY

OF DISMISSAL

Sec. 7 of EO 180.
Government
employees'
organizations shall register with the Civil Service
Commission and the Department of Labor and
Employment. The application shall be filed with the
Bureau of Labor Relations of the Department which
shall process the same in accordance with the
provisions of the Labor Code of the Philippines, as
amended. Applications may also be filed with the
Regional Offices of the Department of Labor and
Employment which shall immediately transmit the
said applications to the Bureau of Labor Relations
within three (3) days from receipt thereof.
Sec. 8. Upon approval of the application, a
registration certificate be issued to the organization
recognizing it as a legitimate employees'
organization with the risght to represent its
members and undertake activities to further and
defend its interest. The corresponding certificates of
registration shall be jointly approved by the
Chairman of the Civil Service Commission and
Secretary of Labor and Employment. (E.O. No.
180)
3. CERTIFICATION ELECTION IN
GOVERNMENT CORPORATION
A certification election to choose the union that will
represent the employees may be conducted by the
Bureau of Labor Relations in a government
corporation, whether governed by the Labor Code
or the Civil Service rules.
Trade Union of the Philippines v Allied p. 262
3.1 Election of Officers in Government Unions

The Public Sector Labor-Management Council,

created by Executive Order No. 180 (June 1, 1987)
has jurisdiction to hear charges of unfair labor
practice filed by government employees against
their employer, e.g., the Pamantasan ng Lungsod ng
Maynila. In deciding the ULP charge the PSLMC
may also rule on the complainants dismissal if the
two issuesULP and dismissalare unavoidably
interlinked.
5. UNION-BUSTING IN A GOVERNMENT
AGENCY, U.L.P.
pp. 263-264, Pineda
5.1 Even Temporary Employees May Organize
Even temporary employees enjoy the basic right to
form organization or association for purposes not
contrary to law.
Under Art. 277(c) of the Labor Code, any
employee, whether employed for a definite period
of not, shall beginning on his first day of service, be
considered an employee for purposes of
membership in any labor union.
________
Art. 244. Right of employees in the public
service. Employees of government corporations
established under the Corporation Code shall have
the right to organize and to bargain collectively with
their respective employers. All other employees in
the civil service shall have the right to form
associations for purposes not contrary to law. (As

amended by Executive Order No. 111, December

24, 1986)

Republic Act No. 9481

AN ACT STRENGTHENING THE WORKERS'
CONSTITUTIONAL RIGHT TO SELFORGANIZATION, AMENDING FOR THE
PURPOSE PRESIDENTIAL DECREE NO. 442,
AS AMENDED, OTHERWISE KNOWN AS
THE LABOR CODE OF THE PHILIPPINES
Be it enacted by the Senate and the House of
Representatives of the Philippines in Congress
assembled:
SECTION 1. Article 234 of Presidential Decree
No. 442, as amended, otherwise known as the Labor
Code of the Philippines, is hereby further amended
to read as follows:
"ART. 234. Requirements of Registration. A federation, national union or industry or
trade union center or an independent union
shall acquire legal personality and shall be
entitled to the rights and privileges granted
by law to legitimate labor organizations
upon issuance of the certificate of
registration based on the following
requirements:
(a) Fifty pesos (P50.00) registration
fee;
(b) The names of its officers, their
addresses, the principal address of
the labor organization, the minutes of
the organizational meetings and the
list of the workers who participated
in such meetings;
(c) In case the applicant is an
independent union, the names of all

its members comprising at least

twenty percent (20%) of all the
employees in the bargaining unit
where it seeks to operate;
(d) If the applicant union has been in
existence for one or more years,
copies of its annual financial reports;
and
(e) Four copies of the constitution
and by-laws of the applicant union,
minutes of its adoption or
ratification, and the list of the
members who participated in it."
SEC. 2. A new provision is hereby inserted into the
Labor Code as Article 234-A to read as follows:
"ART. 234-A. Chartering and Creation of a
Local Chapter. - A duly registered
federation or national union may directly
create a local chapter by issuing a charter
certificate indicating the establishment of
the local chapter. The chapter shall acquire
legal personality only for purposes of filing
a petition for certification election from the
date it was issued a charter certificate.
The chapter shall be entitled to all other
rights and privileges of a legitimate labor
organization only upon the submission of
the following documents in addition to its
charter certificate:
(a) The names of the chapter's
officers, their addresses, and the
principal office of the chapter; and
(b) The chapter's constitution and bylaws: Provided, That where the
chapter's constitution and by-laws
are the same as that of the federation
or the national union, this fact shall
be indicated accordingly.

The additional supporting requirements shall

be certified under oath by the secretary or
treasurer of the chapter and attested by its
president."
SEC. 3. Article 238 of the Labor Code is hereby
amended to read as follows:
"ART. 238. Cancellation of Registration. The certificate of registration of any
legitimate labor organization, whether
national or local, may be cancelled by the
Bureau, after due hearing, only on the
grounds specified in Article 239 hereof."
SEC. 4. A new provision is hereby inserted into the
Labor Code as Article 238-A t o read as follows:
"ART. 238-A. Effect of a Petition for
Cancellation of Registration. - A petition for
cancellation of union registration shall not
suspend the proceedings for certification
election nor shall it prevent the filing of a
petition for certification election.
In case of cancellation, nothing herein shall
restrict the right of the union to seek just and
equitable remedies in the appropriate
courts."
SEC. 5. Article 239 of the Labor Code is amended
to read as follows:
"ART. 239. Grounds for Cancellation of
Union Registration. - The following may
constitute grounds for cancellation of union
registration:
(a) Misrepresentation, false
statement or fraud in connection with
the adoption or ratification of the
constitution and by-laws or
amendments thereto, the minutes of
ratification, and the list of members
who took part in the ratification;

(b) Misrepresentation, false

statements or fraud in connection
with the election of officers, minutes
of the election of officers, and the list
of voters;
(c) Voluntary dissolution by the
members."
SEC. 6. A new provision, Article 239-A is inserted
into the Labor Code to read as follows:
"ART. 239-A. Voluntary Cancellation of
Registration. - The registration of a
legitimate labor organization may be
cancelled by the organization itself.
Provided, That at least two-thirds of its
general membership votes, in a meeting duly
called for that purpose to dissolve the
organization: Provided, further, That an
application to cancel registration is
thereafter submitted by the board of the
organization, attested to by the president
thereof."
SEC. 7. A new provision, Article 242-A is hereby
inserted into the Labor Code to read as follows:
"ART. 242-A. Reportorial Requirements. The following are documents required to be
submitted to the Bureau by the legitimate
labor organization concerned:
(a) Its constitution and by-laws, or
amendments thereto, the minutes of
ratification, and the list of members
who took part in the ratification of
the constitution and by-laws within
thirty (30) days from adoption or
ratification of the constitution and
by-lam or amendments thereto;
(b) Its list of officers, minutes of the
election of officers, and list of voters
within thirty (30) days from election;

(c) Its annual financial report within

thirty (30) days after the close of
every fiscal year; and
(d) Its list of members at least once a
year or whenever required by the
Bureau.
Failure to comply with the above
requirements shall not be a ground for
cancellation of union registration but shall
subject the erring officers or members to
suspension, expulsion from membership, or
any appropriate penalty."
SEC. 8. Article 245 of the Labor Code is hereby
amended to read as follows:
"ART. 245. Ineligibility of Managerial
Employees to Join any Labor Organization;
Right of Supervisory Employees. Managerial employees are not eligible to
join, assist or form any labor organization.
Supervisory employees shall not be eligible
for membership in the collective bargaining
unit of the rank-and-file employees but may
join, assist or form separate collective
bargaining units and/or legitimate labor
organizations of their own. The rank and file
union and the supervisors' union operating
within the same establishment may join the
same federation or national union."
SEC. 9. A new provision, Article 245-A is inserted
into the Labor Code to read as follows:
"ART. 245-A. Effect of Inclusion as
Members of Employees Outside the
Bargaining Unit. - The inclusion as union
members of employees outside the
bargaining unit shall not be a ground for the
cancellation of the registration of the union.
Said employees are automatically deemed
removed from the list of membership of said
union."

SEC. 10. Article 256 of the Labor Code is hereby

amended to read as follows:
"ART. 256. Representation Issue in
Organized Establishments. - In organized
establishments, when a verified petition
questioning the majority status of the
incumbent bargaining agent is filed by any
legitimate labor organization including a
national union or federation which has
already issued a charter certificate to its
local chapter participating in the
certification election or a local chapter
which has been issued a charter certificate
by the national union or federation before
the Department of Labor and Employment
within the sixty (60)-day period before the
expiration of the collective bargaining
agreement, the Med-Arbiter shall
automatically order an election by secret
ballot when the verified petition is supported
by the written consent of at least twenty-five
percent (25%) of all the employees in the
bargaining unit to ascertain the will of the
employees in the appropriate bargaining
unit. To have a valid election, at least a
majority of all eligible voters in the unit
must have cast their votes. The labor union
receiving the majority of the valid votes cast
shall be certified as the exclusive bargaining
agent of all the workers in the unit. When an
election which provides for three or more
choices results in no choice receiving a
majority of the valid votes cast, a run-off
election shall be conducted between the
labor unions receiving the two highest
number of votes: Provided, That the total
number of votes for all contending unions is
at least fifty percent (50%) of the number of
votes cast. In cases where the petition was
filed by a national union or federation, it
shall not be required to disclose the names
of the local chapter's officers and members.

At the expiration of the freedom period, the

employer shall continue to recognize the
majority status of the incumbent bargaining
agent where no petition for certification
election is filed."
SEC. 11. Article 257 of the Labor Code is hereby
amended to read as follows:
"ART. 257. Petitions in Unorganized
Establishments. - In any establishment
where there is no certified bargaining agent,
a certification election shall automatically be
conducted by the Med-Arbiter upon the
filing of a petition by any legitimate labor
organization, including a national union or
federation which has already issued a charter
certificate to its 1ocal/chapter participating
in the certification election or a local/chapter
which has been issued a charter certificate
by the national union or federation. In cases
where the petition was filed by a national

union or federation, it shall not be required

to disclose the names of the local chapter's
officers and members."
SEC. 12. A new provision, Article 258-A is hereby
inserted into the Labor Code to read as follows:
"ART. 258-A. Employer as Bystander. - In
all cases, whether the petition for
certification election is filed by an employer
or a legitimate labor organization, the
employer shall not be considered a party
thereto with a concomitant right to oppose a
petition for certification election. The
employer's participation in such proceedings
shall be limited to: (1) being notified or
informed of petitions of such nature; and (2)
submitting the list of employees during the
pre-election conference should the MedArbiter act favorably on the petition."