COLLECTIVE BARGAINING AGREEMENT

What is Collective Bargaining?

A process of finding a reasonable solution to a conflict and harmonizing opposite

positions into a fair and reasonable compromise. (Caltex Refinery Employees
Assoc. vs. Brilliantes, 279 SCRA 218)

What are the purposes of Collective Bargaining?

In the case of Kiok Loy vs. NLRC, 141 SCRA 179, the Supreme Court states
that, Collective bargaining is one of the democratic framework under the Labor
Code designed to stabilize the relation between the labor and management and
to create a climate of sound and stable industrial peace. It is a mutual
responsibility and a legal obligation to both the employer and the union. So
much so that the Labor Code makes it an unfair labor practice for both the
management and labor to violate the duty to bargain collectively.

What is Collective Bargaining Agreement?

It is a contract by and between an employer and the collective bargaining

representative of the employees, concerning wages, hours of work, and all other
terms and conditions of employment. It covers the whole employment
relationship and prescribes the rights and duties of the parties. (Suarez vs.
National Steel Corporation, 569 SCRA 331,334)

What is the collective bargaining process?

1st STEP Formation of Labor Organization

the collective bargaining process technically starts when the

employees organize themselves as a labor union or labor organization.

2ND STEP REGISTRATION OF THE LABOR ORGANIZATION

after obtaining registration, the union either requests the employer for
voluntary recognition or files a petition for certification election.

3RD STEP SUBMISSION OF WRITTEN PROPOSALS

if accorded voluntary recognition or if certified as the collective

bargaining agent, the union serves its written proposals to the
employer, after which the employer submits its written
counterproposals within ten (10) days from receipt of the proposals.
(Art. 261 (a) of the Labor Code)

4th STEP COLLECTIVE BARGAINING NEGOTIATIONS

after the exchange of proposals and counterproposals, collective

bargaining negotiations follow.

5th STEP SIGNING OF COLLECTIVE BARGAINING AGREEMENT

 if the parties are able to come to an agreement, the union officers and
the representatives of the management sign the CBA.

6th STEP POSTING OF CBA

the signed CBA shall be posted for five (5) days in at least two (2)
conspicuous places in the establishment. This is a mandatory
requirement.

7th STEP RATIFICATION OF THE CBA

Five days after posting, the CBA should be submitted to the employees
covered by the collective bargaining unit for ratification. This is
mandatory and necessary because the CBA was entered into by
the union as the bargaining agent of the employees covered by the
collective bargaining unit. The CBA will be deemed ratified if the
majority of the employees covered by the bargaining unit approve
it.

8th STEP REGISTRATION OF CBA

after ratification, two duly signed copies of the CBA should be

submitted to the Regional Office of the DOLE which issued the
certificate of registration or certificate of creation, in case of chartered
local labor union-party to the agreement; or if the certificate of
creation of the concerned chartered local was issued by the Bureau of
Labor Relations, the said CBA shall be filed with the Regional Office
of the DOLE which has jurisdiction over the place where it principally
operates. (Section 1, Rule 17, of the IRR of the Labor Code)

Registration if necessary, not just for validity but for its stable and
undisturbed administration. A duly registered CBA will bar a
certification election until the freedom period.

WHAT IS THIS FREEDOM PERIOD AND WHY IS CALLED AS SUCH?

The freedom period is the 60-day period prior to the expiration of the CBA. It
is called the freedom period because it is the time when:

a union member can validly resign from the union;

a local union can disaffiliate from its mother federation;
the majority status of the incumbent collective bargaining agent
can be challenged through a petition for certification election;
the parties can seek the termination or modification of the existing
CBA.

WHAT DO YOU MEAN BY DUTY TO BARGAIN COLLECTIVELY?

It 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. (Art. 263 of the
Labor Code)

DUTY TO BARGAIN COLLECTIVELY WHEN THERE IS NO CBA?

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 the
emplyer and the representatives of the employees to bargain collectively in
accordance with the provisions of the Labor Code. (Art. 262 of the Labor Code)

DUTY TO BARGAIN COLLECTIVELY WHEN THERE IS CBA?

Parties must be bound by the terms and conditions in the CBA. Article 264 of the
Labor Code states:

1. Neither party shall terminate nor modify the agreement

during its lifetime;
2. However, either party can terminate or modify the
agreement at least sixty (60) days prior to its expiration
date.
3. 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. (Otherwise known as the HOLD-OVER
PRINCIPLE)

ARE CBAs CONFIDENTIAL?

As a general rule, collective bargaining agreements are not confidential. They are open
and accessible to any of the interested parties except if a specific information is submitted in
confidence, such information can only be disclosed if:

1. authorized by the DOLE Secretary;

2. when it is at issue in any judicial litigation when public interest or
national security so requires.

WHAT ARE THE MANDATORY PROVISIONS OF THE CBA?

Collective Bargaining Agreement must contain provisions establishing a machinery for

the adjustment and resolution of grievances arising from the interpretation or implementation of
their CBA and those arising from the interpretation or enforcement of company personnel
policies.

In addition, CBA shall name and designate in advance the following:

a Voluntary Arbitrator; or
a panel of Voluntary Arbitrators; or
 procedure for selection of such arbitrator or panel of arbitrators,
preferrably from the listing of qualified voluntary arbitrators duly
accredited by the National Conciliation and Mediation Board;

Aside from provision for grievance machinery procedures and for voluntary arbitration, a
CBA may contain following provisions:

No stike-no lockout clause; and/or

Labor Management Council.

WHAT DOES NO STRIKE-NO LOCKOUT CLAUSE MEAN?

The right to strike is not absolute. It has heretofore been held that a no-strike, no
Lockout provision in the CBA is a valid stipulation although the clause may be invoked by an
employer only when the strike is economic in nature or one which is conducted to force wage or
other concessions from the employer that are not mandated to be granted by the law itself.
(Samahan ng mga Manggagawa sa M. Greenfield (MSMG-UWP) vs. Ramos, G. R. No. 113907,
Feb. 28, 2000)
WHAT ABOUT LABOR MANAGEMENT COUNCIL?
Labor Management Council means that workers shall have the right to participate in
policy and decision-making process of the establishment where they are employed,
provided the process directly affect their rights, benefits and welfare, and provided,
further, that the labor-management councils shall be:
1. nominated by the exclusive bargaining representative, in case
of organized establishments; or
2. in establishments where no legitimate labor organization exists,
the workers representative shall be elected directly by the
employees at large.

What are the provisions of the CBA and their duration?

POLITICAL PROVISIONS (representation)

refers to the identity and majority status of the CBA agent that
negotiated in the CBA.

Duration is 5 years reckoned from the date of its effectivity. This

means that during the five year period, no other union can file a
petition for certification of election except during the freedom period
which is the last sixty days of the five year period.

NON-POLITICAL PROVISIONS (economic)

refers to other provisions in the CBA, economic or otherwise other

than representation or political.

Duration is 3 years from the date of its effectivity. This means that
parties can renegotiate the agreement, with respect to non-political
provisions, not later than three years from its execution.

SUBMITTED BY:

MA. KRISKA ANGELA H. TUMAMAK