C2016 Labor II Midterms Reviewer

Block C 2016
LABOR 2
Midterms Reviewer: Prof. Battad
Azores, Bahjin, Chua, De Guzman, Haynes, Leynes, Licaros

SY 2013-2014
Editor’s Note
This Midterms Reviewer is a compilation of all assigned laws and case digests for the midterms of Prof.
Leo Battad.
Case digests included in this reviewer contain direct quotations from the cases itself. Facts are limited
to the company, the union/s and the employee/s involved. This is best used merely as a reviewer,
rather than notes in class.
Good luck to you all.
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TABLE OF CONTENTS
EDITOR’S NOTE 1
I. INTRODUCTION 6
A. Capital and Labor 6
B. Definition and Overview of Labor Relations 6

1. Distinction between Labor Standards and Labor Relations 6
2. Overview of Labor Relations 6
C. Labor Relations and its Goal 6

1. Social Justice and Police Power 6
2. Protection to Labor; Balancing of Power 6
D. Seven Cardinal Rights of Workers 7
E. Management Prerogative 7
II. STATE POLICY 8
A. Trade Unionism, Definition of Trade Union Activities 8
B. Work Enlightenment 8
C. Methods of Dispute Settlement 9
D. Machinery for Dispute Settlement 10

1. National Labor Relations Commission; Labor Arbiters 11
2. Bureau of Labor Relations; labor Relations Division 16
3. National Conciliation Mediation Board 21
4. Voluntary Arbitration, Voluntary Arbitration Advisory Council 21
5. Administrative Intervention for Dispute Avoidance 23
E. Industrial Peace 24
F. Worker Participation in Decision and Policy making Processes Affecting Rights, Duties and Welfare 25
III. RIGHT TO SELF ORGANIZATION 26
A. Sources and Bases of the Right to Self-Organization 26

1. Universal Declaration of Human Rights 26
2. ILO Convention No. 87 and 98 26
3. Philippine Constitution 26
4. Labor Code 26
a) U.S. Laws 28
1) National Labor Relations Act (Wagner Act) 28
2) US Labor-Management Relations Act of 1947 (Taft-Hartley Act) 28
b) Pre Labor Code 28
1) Commonwealth Act No. 103 28
2) Industrial Peace Act (R.A. 875 of 1953) 29
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B. Extent and Scope of Right 29
C. Worker Qualification 30
D. Covered Employees/Workers 31
1. All Employees 31
2. Government Corporate Employees 32
3. Supervisory Employees 34
4. Aliens 36
5. Security Guards 37
E. Excluded Employees/Workers 37
1. Managerial Employees 37
2. Confidential Employees 39
3. Worker/Member of Cooperative 40
4. Employees of International Organizations 41
5. Non-employees 41
F. Party Protected 41
G. Non-Abridgment of Right and Sanctions for Violation of Right 42
IV. LABOR ORGANIZATION 45
A. Policy 45
B. Definition 45
C. Categories of Labor Organizations and Unions 46

1. Labor Union 47
a) Legitimate Organization 47
b) Company Union 47
2. Workers Association 47
a) Legitimate Workers’ Association 48
3. National Union or Federation 48
4. Trade Union Center 48
D. Union Function and Rationale 49
E. Regulation of Labor Organization 50

1. Union Registration: Procedure 50
a) Requirements and Rationale 50
b) Action on Application; Denial of Registration 53
c) Effect of Registration; Non-Registration; Acquisition of Legal Personality 54
d) Rights of Legitimate Labor Organization 55
2. Cancellation of Union Certificate of Registration 57
3. Reportorial Requirements 59
F. International Activities of Union: Prohibition and Regulation 59
G. Union-Member Relations 59
1. Nature of Relationship 62
2. Issues and Concerns 62
a) Admission and Discipline of Members 62
b) Election of Officers: Qualifications; Manner of Election; Tenure and Compensation 63
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c) Major Policy Matter 66
d) Union Funds: Payment of Attorney’s Fees and Special Assessment 66
e) Mandatory Activity 68
f) Union Information 68
g) Enforcement and Remedies; Procedure and Sanctions 69
H. Union Chartering/Affiliation: Local and Parent Union Relations 71

1. Purpose and Nature of Relations 75
2. Requirements for Registration 75
a) Chartered Local (local/chapter 75
b) Affiliate 76
c) National Union or Federation 76
3. Supervisor/Rank and File Union Affiliation 76
4. Local Union Disaffiliation/Mass Disaffiliation 78
a) Period of Disaffiliation 79
b) Effect of Disaffiliation 79
I. Union Security 80
1. Statutory Basis and Rationale 80
2. Validity Agreement and Effect on Freedom of Choice; Types of Union Security Provisions 80
3. Coverage: Worker Inclusion and Exclusion 81
4. Implementation: Obligation and Liabilities 82
5. Financial Security: Agency Shop and Check-Off 82
V. THE APPROPRIATE BARGAINING UNIT 83
A. Definition and Role of Law 83
B. Determination of Appropriate Bargaining Unit 84

1. Factors in Unit Determination 84
2. Unit Severance and Globe Doctrine 85
3. Effect of Prior Agreement 86
4. Effect of Including Employees Outside of the Bargaining Unit 86
C. Determining Agency 86
VI. UNION REPRESENTATION 87
A. Pre-condition: Employer-employee Relationship 87
B. Methods of Establishing Majority Status 87

1. Policy/Purpose 87
2. Voluntary Recognition 89
3. Elections 91
a) Certification Election 91
b) Consent Election 103
c) Run-Off Election 103
4. Venue of Petition 103
C. Certification Election: Process 104

1. The Union as Initiating Party 104
a) Organized Establishment 105
1) Petition Before Freedom Election Period 105
2) Petition Beyond Freedom Period 105
3) Filing Party/Misrepresentation by Union Officers 106
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4) Forced Intervention/Motion for Intervention 106
b) Unorganized Establishment 107
c) Filing of Petition 107
1) Form of Petition 107
2) Substantial Support 107
d) Effect of Members’ Retraction on Petition 108
2. The Employer as Initiating Party 108
3. Responsible Agency 109
4. Nature of Proceeding/Effect of Private Agreement 110
5. Process and Procedure 111
a) Preliminary Conference; Hearing 111
b) Consent Election; Agreement 111
c) Order/Decision on the Petition 112
d) Denial of the Petition; Grounds 112
e) Appeal 113
6. Conduct of Certification Election 114
a) Pre-election Conference 118
b) Voter List and Voters 118
c) Posting Notice 119
d) Voting Day/Venue 119
e) Conduct of Election 120
f) Challenging of Votes and On the Spot Questions 120
g) Protest Period 120
h) Requisite for Validity of Election/Failure of Election 121
i) Nullification of Election Results 122
j) Run-Off Election 143
k) Effect of Non-filing of Petition for Certification Election 143
7. Where no Petition for Certification Election is Filed 124
D. Certification of Designated Majority Union 124
E. Bars to Certification Election 126

1. One-Year Bar Rule 149
2. Negotiation Bar Rule 150
3. Deadlock Bar Rule 150
4. Contract Bar Rule 130
F. Opposition; Suspension of Certification Election: Prejudicial Question 153
G. Effect of Petition for Cancellation of Trade Union Registration 154
VII. COLLECTIVE BARGAINING: CONCEPT, PROCEDURES AND ISSUES 133
A. General Concept 133

1. Policy Declaration 133
2. Definition, Nature and Purpose, and Rules Interpretation 155
3. Waiver 156
B. Duty to Bargain 135
C. Bargaining Procedure 161

1. Private Procedure 163
2. Labor Code Procedure 163
3. Conciliation/Preventive Mediation 164
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I. INTRODUCTION
A. Capital and Labor
B. Definition and Overview of Labor Relations

1. Distinction between Labor Standards and Labor Relations
2. Overview of Labor Relations
C. Labor Relations and its Goal

1. Social Justice and Police Power
1987 Constitution Art. 2, Section 5.

The maintenance of peace and order, the protection of life, liberty, and property, and promotion of the
general welfare are essential for the enjoyment by all the people of the blessings of democracy.

The State shall promote a just and dynamic social order that will ensure the prosperity and
independence of the nation and free the people from poverty through policies that provide adequate
social services, promote full employment, a rising standard of living, and an improved quality of life for
all.

The State shall promote social justice in all phases of national development.

The Congress shall give highest priority to the enactment of measures that protect and enhance the
right of all the people to human dignity, reduce social, economic, and political inequalities, and remove
cultural inequities by equitably diffusing wealth and political power for the common good.
To this end, the State shall regulate the acquisition, ownership, use, and disposition of property and its
increments.

The promotion of social justice shall include the commitment to create economic opportunities based
on freedom of initiative and self-reliance.
2. Protection to Labor; Balancing of Power

The State affirms labor as a primary social economic force. It shall protect the rights of workers and
promote their welfare.
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The State recognizes the indispensable role of the private sector, encourages private enterprise, and
provides incentives to needed investments.

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 to
investments, and to expansion and growth.
 Antamoc Goldfields Mining Co. v CIR (1940)

Company: Antamok Goldfield Mining Company
Union/s: National Labor Union
Issue: Constitutionality of Commonwealth Act No. 103 (Establishing CIR)
Doctrine: Commonwealth Act No. 213 was enacted in pursuance of what appears to be the deliberate
embodiment of a new social policy, founded on the conception of a society integrated not by
independent individuals at dealing at arms’ length, but by interdependent members of a consolidated
whole whose interests must be protected against mutual aggression and warfare among and between
divers and diverse units which are impelled by countervailing and opposite individual and group
interests, and this is particularly true in the relationship between labor and capital.
D. Seven Cardinal Rights of Workers
1987 Constitution Art. 13, Section 3. (supra on page 76)
E. Management Prerogative
 University of Immaculate Concepcion, Inc. v. Sec. of Labor (2005)

Company: University of Immaculate Concepcion, Inc.
Union/s: The UIC Teaching and Non-Teaching Personnel and Employees Union
Issue: Exlcusion from Bargaining Unit of certain employees
Doctrine: This Court declared that it recognizes the exercise of management prerogatives and it often
declines to interfere with the legitimate business decisions of the employer. However, as expressed in
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PAL v. National Labor Relations Commission, this privilege is not absolute, but subject to exceptions
(e.g. Industries indispensible to the National Interest).
II. STATE POLICY

A. Trade Unionism, Definition of Trade Union Activities
Art. 218 A (b) (c). 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;
Art. 219 (g). Definitions

g. "Labor organization" means any union or association of employees which exists in whole or in part
for the purpose of collective bargaining or of dealing with employers concerning terms and conditions
of employment
284 (a) par. 2 Regulation of foreign assistance.

"Trade union activities" shall mean:
1. Organization, formation and administration of labor organization;
2. Negotiation and administration of collective bargaining agreements;
3. All forms of concerted union action;
4. Organizing, managing, or assisting union conventions, meetings, rallies, referenda, teach-ins,
seminars, conferences and institutes;
5. Any form of participation or involvement in representation proceedings, representation elections,
consent elections, union elections; and
6. Other activities or actions analogous to the foregoing.
Book V, Rule VI, Sec. 1. Policy.

It is the policy of the State to promote free trade unionism through expeditious procedures governing
the choice of an exclusive bargaining agent. The determination of such exclusive bargaining agent is a
non-litigious proceeding and, as far as practicable, shall be free from technicalities of law and
procedure, provided only t hat in every case, the exclusive bargaining agent enjoys the majority
support of all the employees in the bargaining unit.
B. Work Enlightenment
Arts. 218 A (d) Declaration of Policy.

d. To promote the enlightenment of workers concerning their rights and obligations as union members
and as employees
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Art. 249 (p) 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.
Art. 291 (a) Miscellaneous provisions.

a. All unions are authorized to collect reasonable membership fees, union dues, assessments and fines
and other contributions for labor education and research, mutual death and hospitalization benefits,
welfare fund, strike fund and credit and cooperative undertakings
 Victoria v. Inciong (1988)

Company: Far East Broadcasting Company, Inc.
Union/s: Far East Broadcasting Company Employees Association
Issue: Liability of Union Leaders due to an illegal strike
Doctrine: Petitioner as a union leader, must see to it that the policies and activities of the union in the
conduct of labor relations are within the precepts of law and any deviation from the legal boundaries
shall be imputable to the leader. He bears the responsibility of guiding the union along the path of law
and to cause the union to demand what is not legally demandable, would foment anarchy which is a
prelude to chaos.
C. Methods of Dispute Settlement
Art. 218 A (a) Declaration of Policy.

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;
Art. 3 Declaration of Basic Policy.

The State shall afford protection to labor, promote full employment, ensure equal work
opportunities regardless of sex, race or creed and regulate the relations between workers and
employers. The State shall assure the rights of workers to self-organization, collective bargaining,
security of tenure, and just and humane conditions of work.
 Estate of Nelson R. Dulay v. Aboitiz Jebsen Maritime, Inc. (2012)

Company: General Charterers Inc.
Union/s: Associated Marine Officers and Seaman’s Union of the Philippines
Issue: Jurisdiction of Voluntary Arbiters or panel of Voluntary Arbiters
Doctrine: Section 10 of R.A. 8042, which is cited by petitioner, simply speaks, in general, of “claims
arising out of an 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
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damages.” On the other hand, Articles 217(c) and 261 of the Labor Code are very specific in stating
that voluntary arbitrators have jurisdiction over cases arising from the interpretation or
implementation of collective bargaining agreements.
D. Machinery for Dispute Settlement
Art. 218 A (e)

e. To provide an adequate administrative machinery for the expeditious settlement of labor or
industrial disputes;
219 (a) (b) (c) (d); 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
1987 Administrative code of the Philippines, Title VII, Chapter on Labor and Employment, Sec. 23. National
Conciliation and Mediation Board.
The National Conciliation and Mediation Board, shall absorb the conciliation, mediation and voluntary
arbitration functions of the Bureau of Labor Relations. The Board shall be composed of an
Administrator and two (2) Deputy Administrators. It shall be an attached agency under the
administrative supervision of the Secretary of Labor and Employment.
The Administrator and the Deputy Administrators shall be appointed by the President upon
recommendation of the Secretary of Labor and Employment. There shall be as many Conciliators-
Mediators as the needs of the public service require, who shall have at least three (3) years of
experience in handling labor relations and who shall be appointed by the Secretary. The Board shall
have its main office in Metropolitan Manila and its Administrator shall exercise supervision over
Conciliators-Mediators and all its personnel. It shall establish as many branches as there are
administrative regions in the country, with as many Conciliators-Mediators as shall be necessary for its
effective operation. Each branch of the Board shall be headed by an Executive Conciliator-Mediator.
The Board shall have the following functions:
(1) Formulate policies, programs, standards, procedures, manuals of operation and guidelines
pertaining to effective mediation and conciliation of labor disputes;
(2) Perform preventive mediation and conciliation functions;
(3) Coordinate and maintain linkages with other sectors or institutions, and other government
authorities concerned with matters relative to the prevention and settlement of labor disputes;
(4) Formulate policies, plans, programs, standards, procedures, manuals of operation and guidelines
pertaining to the promotion of cooperative and non-adversarial schemes, grievance handling,
voluntary arbitration and other voluntary modes of dispute settlement;
(5) Administer the voluntary arbitration program; maintain or update a list of voluntary arbitrations;
compile arbitration awards and decisions;
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(6) Provide counselling and preventive mediation assistance particularly in the administration of
collective agreements;
(7) Monitor and exercise technical supervision over the Board programs being implemented in the
regional offices; and
(8) Perform such other functions as may be provided by law or assigned by the Secretary.
The Tripartite Voluntary Arbitration Advisory Council, which is attached to the National Conciliation
and Mediation Board, shall advise the National and Conciliation and Mediation Board on matters
pertaining to the promotion of voluntary arbitration as the preferred mode of dispute settlement.
The Tripartite Voluntary Arbitration Advisory Council shall consist of the Administrator of the National
Conciliation and Mediation Board as Chairman, one other member from the government, two (2)
members representing labor, and two (2) other members representing management. The members
shall be appointed by the President to serve for a term of three (3) years. The Chairman and Members
shall serve without compensation.
1. National Labor Relations Commission; Labor Arbiters
Art. 219 (a)

a. "Commission" means the National Labor Relations Commission or any of its divisions, as the case
may be, as provided under this Code.
Art. 220 National Labor Relations Commission.

There shall be a National Labor Relations Commission which shall be attached to the Department of
Labor and Employment for program and policy coordination only, composed of a Chairman and
fourteen (14) Members.
Five (5) members each shall be chosen from among the nominees of the workers and employers
organizations, respectively. The Chairman and the four (4) remaining members shall come from the
public sector, with the latter to be chosen from among the recommendees of the Secretary of Labor
and Employment.
Upon assumption into office, the members nominated by the workers and employers organizations
shall divest themselves of any affiliation with or interest in the federation or association to which they
belong.
The Commission may sit en banc or in five (5) divisions, each composed of three (3) members. Subject
to the penultimate sentence of this paragraph, the Commission shall sit en banc only for purposes of
promulgating rules and regulations governing the hearing and disposition of cases before any of its
divisions and regional branches, and formulating policies affecting its administration and operations.
The Commission shall exercise its adjudicatory and all other powers, functions, and duties through its
divisions. Of the five (5) divisions, the first, second and third divisions shall handle cases coming from
the National Capital Region and the parts of Luzon; and the fourth and fifth divisions, cases from the
Visayas and Mindanao, respectively; Provided that the Commission sitting en banc may, on temporary
or emergency basis, allow cases within the jurisdiction of any division to be heard and decided by any
other division whose docket allows the additional workload and such transfer will not expose litigants
to unnecessary additional expense. The divisions of the Commission shall have exclusive appellate
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jurisdiction over cases within their respective territorial jurisdictions. [As amended by Republic Act No.
7700].
The concurrence of two (2) Commissioners of a division shall be necessary for the pronouncement of
judgment or resolution. Whenever the required membership in a division is not complete and the
concurrence of two (2) commissioners to arrive at a judgment or resolution cannot be obtained, the
Chairman shall designate such number of additional Commissioners from the other divisions as may be
necessary.
The conclusions of a division on any case submitted to it for decision shall be reached in consultation
before the case is assigned to a member for the writing of the opinion. It shall be mandatory for the
division to meet for purposes of the consultation ordained herein. A certification to this effect signed
by the Presiding Commissioner of the division shall be issued and a copy thereof attached to the record
of the case and served upon the parties.
The Chairman shall be the Presiding Commissioner of the first division and the four (4) other members
from the public sector shall be the Presiding Commissioners of the second, third, fourth and fifth
divisions, respectively. In case of the effective absence or incapacity of the Chairman, the Presiding
Commissioner of the second division shall be the Acting Chairman.
The Chairman, aided by the Executive Clerk of the Commission, shall have administrative supervision
over the Commission and its regional branches and all its personnel, including the Executive Labor
Arbiters and Labor Arbiters.
The Commission, when sitting en banc shall be assisted by the same Executive Clerk and, when acting
thru its Divisions, by said Executive Clerks for the second, third, fourth and fifth Divisions, respectively,
in the performance of such similar or equivalent functions and duties as are discharged by the Clerk of
Court and Deputy Clerks of Court of the Court of Appeals. (As amended by Section 5, Republic Act No.
6715, March 21, 1989)
Art. 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
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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. (As amended by Section 9, Republic Act No. 6715, March 21,
1989)
Art. 225 Powers of the Commission.

The Commission shall have the power and authority:
a. To promulgate rules and regulations governing the hearing and disposition of cases before it and its
regional branches, as well as those pertaining to its internal functions and such rules and regulations as
may be necessary to carry out the purposes of this Code; (As amended by Section 10, Republic Act No.
6715, March 21, 1989)
b. To administer oaths, summon the parties to a controversy, issue subpoenas requiring the
attendance and testimony of witnesses or the production of such books, papers, contracts, records,
statement of accounts, agreements, and others as may be material to a just determination of the
matter under investigation, and to testify in any investigation or hearing conducted in pursuance of
this Code;
c. To conduct investigation for the determination of a question, matter or controversy within its
jurisdiction, proceed to hear and determine the disputes in the absence of any party thereto who has
been summoned or served with notice to appear, conduct its proceedings or any part thereofin public
or in private, adjourn its hearings to any time and place, refer technical matters or accounts to an
expert and to accept his report as evidence after hearing of the parties upon due notice, direct parties
to be joined in or excluded from the proceedings, correct, amend, or waive any error, defect or
irregularity whether in substance or in form, give all such directions as it may deem necessary or
expedient in the determination of the dispute before it, and dismiss any matter or refrain from further
hearing or from determining the dispute or part thereof, where it is trivial or where further
proceedings by the Commission are not necessary or desirable; and
d. To hold any person in contempt directly or indirectly and impose appropriate penalties therefor in
accordance with law.
A person guilty of misbehavior in the presence of or so near the Chairman or any member of the
Commission or any Labor Arbiter as to obstruct or interrupt the proceedings before the same,
including disrespect toward said officials, offensive personalities toward others, or refusal to be sworn,
or to answer as a witness or to subscribe an affidavit or deposition when lawfully required to do so,
may be summarily adjudged in direct contempt by said officials and punished by fine not exceeding five
hundred pesos (P500) or imprisonment not exceeding five (5) days, or both, if it be the Commission, or
a member thereof, or by a fine not exceeding one hundred pesos (P100) or imprisonment not
exceeding one (1) day, or both, if it be a Labor Arbiter.
The person adjudged in direct contempt by a Labor Arbiter may appeal to the Commission and the
execution of the judgment shall be suspended pending the resolution of the appeal upon the filing by
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such person of a bond on condition that he will abide by and perform the judgment of the Commission
should the appeal be decided against him. Judgment of the Commission on direct contempt is
immediately executory and unappealable. Indirect contempt shall be dealt with by the Commission or
Labor Arbiter in the manner prescribed under Rule 71 of the Revised Rules of Court; and (As amended
by Section 10, Republic Act No. 6715, March 21, 1989)
e. To enjoin or restrain any actual or threatened commission of any or all prohibited or unlawful acts or
to require the performance of a particular act in any labor dispute which, if not restrained or
performed forthwith, may cause grave or irreparable damage to any party or render ineffectual any
decision in favor of such party: Provided, That no temporary or permanent injunction in any case
involving or growing out of a labor dispute as defined in this Code shall be issued except after hearing
the testimony of witnesses, with opportunity for cross-examination, in support of the allegations of a
complaint made under oath, and testimony in opposition thereto, if offered, and only after a finding of
fact by the Commission, to the effect:
1. That prohibited or unlawful acts have been threatened and will be committed and will be continued
unless restrained, but no injunction or temporary restraining order shall be issued on account of any
threat, prohibited or unlawful act, except against the person or persons, association or organization
making the threat or committing the prohibited or unlawful act or actually authorizing or ratifying the
same after actual knowledge thereof;
2. That substantial and irreparable injury to complainant’s property will follow;
3. That as to each item of relief to be granted, greater injury will be inflicted upon complainant by the
denial of relief than will be inflicted upon defendants by the granting of relief;
4. That complainant has no adequate remedy at law; and
5. That the public officers charged with the duty to protect complainant’s property are unable or
unwilling to furnish adequate protection.
Such hearing shall be held after due and personal notice thereof has been served, in such manner as
the Commission shall direct, to all known persons against whom relief is sought, and also to the Chief
Executive and other public officials of the province or city within which the unlawful acts have been
threatened or committed, charged with the duty to protect complainant’s property: Provided,
however, that if a complainant shall also allege that, unless a temporary restraining order shall be
issued without notice, a substantial and irreparable injury to complainant’s property will be
unavoidable, such a temporary restraining order may be issued upon testimony under oath, sufficient,
if sustained, to justify the Commission in issuing a temporary injunction upon hearing after notice. Such
a temporary restraining order shall be effective for no longer than twenty (20) days and shall become
void at the expiration of said twenty (20) days. No such temporary restraining order or temporary
injunction shall be issued except on condition that complainant shall first file an undertaking with
adequate security in an amount to be fixed by the Commission sufficient to recompense those
enjoined for any loss, expense or damage caused by the improvident or erroneous issuance of such
order or injunction, including all reasonable costs, together with a reasonable attorney’s fee, and
expense of defense against the order or against the granting of any injunctive relief sought in the same
proceeding and subsequently denied by the Commission.
The undertaking herein mentioned shall be understood to constitute an agreement entered into by the
complainant and the surety upon which an order may be rendered in the same suit or proceeding
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against said complainant and surety, upon a hearing to assess damages, of which hearing, complainant
and surety shall have reasonable notice, the said complainant and surety submitting themselves to the
jurisdiction of the Commission for that purpose. But nothing herein contained shall deprive any party
having a claim or cause of action under or upon such undertaking from electing to pursue his ordinary
remedy by suit at law or in equity: Provided, further, That the reception of evidence for the application
of a writ of injunction may be delegated by the Commission to any of its Labor Arbiters who shall
conduct such hearings in such places as he may determine to be accessible to the parties and their
witnesses and shall submit thereafter his recommendation to the Commission. (As amended by Section
10, Republic Act No. 6715, March 21, 1989)
Art. 226 Ocular inspection.

The Chairman, any Commissioner, Labor Arbiter or their duly authorized representatives, may, at any
time during working hours, conduct an ocular inspection on any establishment, building, ship or vessel,
place or premises, including any work, material, implement, machinery, appliance or any object
therein, and ask any employee, laborer, or any person, as the case may be, for any information odata
concerning any matter or question relative to the object of the investigation
 St. Martins Funeral Homes v. NLRC (1998)

Company: St. Martin Funeral Home
Employee: Bienvenido Aricayos
Issue: Appellate jurisdiction from decisions of the NLRC
Doctrine: Therefore, all references in the amended Section 9 of B.P. No. 129 to supposed appeals from
the NLRC to the Supreme Court are interpreted and hereby declared to mean and refer to petitions for
certiorari under Rule 65. Consequently, all such petitions should hence forth be initially filed in the
Court of Appeals in strict observance of the doctrine on the hierarchy of courts as the appropriate
forum for the relief desired.
 Deltaventures Resources, Inc. v Cabato (2000)

Company: Green Mountain Farm
Employees: Alejandro Bernardino, et. al
Third Party Complainant: Deltaventures Resources, Inc.
Issue: Jurisdiction of the Trial Court to restrain the NLRC
Doctrine: The complaint before the trial court was for the recovery of possession and injunction, but in
essence it was an action challenging the legality or propriety of the levy vis-a-vis the alias writ of
execution, including the acts performed by the Labor Arbiter and the Deputy Sheriff implementing the
writ. Petitioner failed to realize that by filing its third-party claim with the deputy sheriff, it submitted
itself to the jurisdiction of the Commission acting through the Labor Arbiter.
Moreover, in denying petitioner's petition for injunction, the court a quo is merely upholding the time-
honored principle that a Regional Trial Court, being a co-equal body of the National Labor Relations
Commission, has no jurisdiction to issue any restraining order or injunction to enjoin the execution of
any decision of the latter.
15 | P a g e
2. Bureau of Labor Relations; labor Relations Division
Art. 219 (b)

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.
Art. 232; Bureau of Labor Relations.

The Bureau of Labor Relations and the Labor Relations Divisions in the regional offices of the
Department of Labor, shall have original and exclusive authority to act, at their own initiative or upon
request of either or both parties, on all inter-union and intra-union conflicts, and all disputes,
grievances or problems arising from or affecting labor-management relations in all workplaces,
whether agricultural or non-agricultural, except those arising from the implementation or
interpretation of collective bargaining agreements which shall be the subject of grievance procedure
and/or voluntary arbitration.
The Bureau shall have fifteen (15) working days to act on labor cases before it, subject to extension by
agreement of the parties. (As amended by Section 14, Republic Act No. 6715, March 21, 1989).
Book V, Rule XI, INTER/INTRA-UNION DISPUTES AND OTHER RELATED LABOR RELATIONS DISPUTES
Section 1. Coverage. - Inter/intra-union disputes shall include:

(a) cancellation of registration of a labor organi zation filed by its members or by another labor
organization;
(b) conduct of election of union and workers' associ ation officers/nullification of election of union and
workers' association officers;
(c) audit/accounts examination of union or workers' association funds;
(d) deregistration of collective bargaining agreements;
(e) validity/invalidity of union affiliation or disaffiliation;
(f) validity/invalidity of acceptance/non-acceptance for union membership;
(g) validity/invalidity of impeachment/expulsion of union and workers association officers and
members;
(h) validity/invalidity of voluntary recognition;
(i) opposition to application for union and CBA registration;
(j) violations of or disagreements over any provis ion in a union or workers' association constitution
and by-laws;
(k) disagreements over chartering or registration of labor organizations and collective bargaining
agreements;
(l) violations of the rights and conditions of union or workers' association membership;
(m) violations of the rights of legitimate labor organizations, except interpretation of collective
bargaining agreements;
(n) such other disputes or conflicts involving t he rights to self-organization, union membership and
collective bargaining -
(1) between and among legitimate labor organizations;
(2) between and among members of a union or workers' association.
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Section 2. Coverage. - Other related labor relations disputes shall include any conflict between a labor
union and the employer or any individual, entity or group that is not a labor organization or workers'
association. This includes: (1) cancellation of registration of unions and workers associations; and (2) a
petition for interpleader.
Section 3. Effects of the filing/pendency of inter/intra-union and other related labor relations disputes.
- The rights, relationships and obligations of the parties litigants against each other and other parties-
in-interest prior to the institution of the petition shall continue to remain during the pendency of the
petition and until the date of finality of the decision rendered therein. Thereafter, the rights,
relationships and obligations of the parties litigants ag ainst each other and other parties-in-interest
shall be governed by the decision so ordered.
The filing or pendency of any inter/intra-union disput e and other related labor relations dispute is not
a prejudicial question to any petition for certification election and shall not be a ground for the
dismissal of a petition for certification elec tion or suspension of proceeding s for certification election.
Section 4. Who may file. - Any legitimate labor organization or member(s) thereof specially concerned
may file a complaint or petition involving disputes or issues enumerated in Section 1 hereof. Any party-
in-interest may file a complaint or petition involving disputes or issues enumerated in Section 2
hereof. Where the issue involves the entire membership of the labor organization, the complaint or
petition shall be supported by at least thir ty percent (30%) of its members.
Section 5. Where to file. - Complaints or petitions involving labor unions with independent
registrations, chartered locals, workers' associatio ns, its officers or members shall be filed with the
Regional Office that issued its certificate of registration or certificate of creation of chartered local.
Complaints involving federations, national unions, industry unions, its officers or member
organizations shall be filed with the Bureau.
Petitions for cancellation of registration of labor unions with independent registration, chartered locals
and workers association and petitions for deregist ration of collective bargaining agreements shall be
resolved by the Regional Director. He/She may appoi nt a Hearing Officer from the Labor Relations
Division.
Other inter/intra-union disputes and related labor relations disputes shall be heard and resolved by the
Med-Arbiter in the Regional Office.
Complaints or petitions involving federations, national or industry unions, trade union centers and
their chartered locals, affiliates or member organizations shall be filed either with the Regional Office
or the Bureau. The complaint or petition shall be heard and resolved by the Bureau.
When two or more petitions involving the same parties and the same causes of action are filed, the
same shall be automatically consolidated.
Section 6. Formal requirements of the complaint or petition. - The complaint or petition shall be in
writing, verified under oath and shall, among others, contain the following:
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(a) name, address and other personal circumst ances of the complainant(s) or petitioner(s);
(b) name, address and other personal circumstan ces of the respondent(s) or person(s) charged;
(c) nature of the complaint or petition;
(d) facts and circumstances surroun ding the complaint or petition;
(e) cause(s) of action or specific violation(s) committed;
(f) a statement that the administr ative remedies provided for in the constitution and by-laws have
been exhausted or such remedies are not readily availabl e to the complainant(s) or petitioner(s)
through no fault of his/her/their own, or compliance with such administrative remedies does not
apply to omplainant(s) or petitioner(s);
(g) relief(s) prayed for;
(h) certificate of non-forum shopping; and
(i) other relevant matters.
Section 7. Raffle of the case. -Upon the filing of the complaint or petition, the Regional Director or any
of his/her authorized representative in the Regional Office and the Docket Section of the Bureau shall
allow the party filing the complaint or petition to determine the Med-Arbiter or Hearing Officer
assigned to the case by means of a raffle. Where there is on ly one Med-Arbiter or Hearing Officer in
the region, the raffle shall be dispensed with and the complaint or petition shall be assigned to
him/her.
Section 8. Notice of preliminary conference. - Immediately after the raffle of the case or receipt of the
complaint or petition, the same shall be transmi tted to the Med-Arbiter or Hearing Officer, as the case
may be, who shall in the same instance prepar e the notice for preliminary conference and cause the
service thereof upon the party filing the petition. The preliminary conference shall be scheduled within
ten (10) days from receipt of the complaint or petition.
Within three (3) days from receipt of the complaint or petition, the Med- Arbiter or Hearing Officer, as
the case may be, shall cause the service of summon s upon the respondent(s) named therein, directing
him/her to file his/her answer/comment on the complaint or petition on or before the scheduled
preliminary conference and to appear before the Med-Arbiter or Hearing Officer on the scheduled
preliminary conference.
Section 9. Conduct of preliminary conference. - The Med-Arbiter or Hearing Officer, as the case may
be, shall conduct a preliminary conference and hearing within ten (10) days from receipt of the
complaint or petition. He/She shall exert every effort to effect an amicable settlement of the dispute.
Where the parties agree to settle amicably, their agreements shall be specified in the minutes of the
conference and a decision based on compromise sha ll be issued by the Med-Arbiter or the Regional
Director, as the case may be, within five (5 ) days from the date of the mandatory conference.
Where no amicable settlement is reached, the Med-Arbiter or Hearing Officer, as the case may be,
shall proceed with the stipulation of facts, limitation or definition of the issues, clarificatory
questioning and submission of laws and jurisprudence relied upon in support of each other's claims
and defenses.
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Section 10. Conduct of Hearing(s). - The Med-Arbiter or Hearing Officer, as the case may be, shall
determine whether to call further hearing(s) on the complaint or petition.
Where the Med-Arbiter or Hearing Officer, as the case may be, decides to conduct further hearing(s),
he/she shall require the parties to submit the affidavits of their witnesses and such documentary
evidence material to prove eac h other's claims and defenses. The hearing(s) shall be limited to
clarificatory questions by the Med-Arbiter or Heari ng Officer and must be completed within twenty-
five (25) days from the date of preliminary conference.
The complaint or petition shall be considered submitted for decision after the date of the last hearing
or upon expiration of twenty-five (25) days from date of preliminary conference, whichever comes
first.
Section 11. Affirmation of testimonial evidence. - Any affidavit submitted by a party to prove his/her
claims or defenses shall be re-affirmed by the presentation of the affiant before the Med-Arbiter or
Hearing Officer, as the case may be. Any affidavit submitted without the re-affirmation of the affiant
during a scheduled hearing shall not be admitted in evidence, except when the party against whom
the affidavit is being offered admits all allegations t herein and waives the examination of the affiant.
Section 12. Filing of pleadings. - The parties may file his/her pleadings, including their respective
position papers, within the twenty-five (25) day period prescribed for the conduct of hearing(s). No
other pleading shall be considered or entertained after the case is considered submitted for decision.
Section 13. Hearing and resolution of the complaint or petition in the Bureau. - The Bureau shall
observe the same process and have t he same period within which to hear and resolve the complaints
or petitions filed before it.
Section 14. Decision. - The Bureau and the Med-Arbiter or Regional Director, as the case may be, shall
have twenty (20) days from the date of the last hearing within which to decide the complaint or
petition. The decision shall state the facts, findings, conclusion, and reliefs granted.
Section 15. Release of Decision . - The notice of decision shall be si gned by the Records Officer in the
Bureau and by the Med-Arbiter or Hearing Officer in the Regional Office. Within twenty (20) days from
date of last hearing, the decision shall be released to the parties personally on a date and time agreed
upon during the last hearing.
Section 16. Appeal. - The decision of the Med-Arbiter and Regional Director may be appealed to the
Bureau by any of the parties within ten (10) day s from receipt thereof, copy furnished the opposing
party. The decision of the Bureau Director in the exercise of his/her original jurisdiction may be
appealed to the Office of the Secretary by any party within the same period, copy furnished the
opposing party.
The appeal shall be verified under oath and shall cons ist of a memorandum of appeal specifically
stating the grounds relied upon by the appellan t, with supporting arguments and evidence.
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Section 17. Where to file appeal. - The memorandum of appeal shall be filed in the Regional Office or
Bureau where the complaint or petition originated. Within twenty-four (24) hours from receipt of the
memorandum of appeal, the Bureau or Regional Director shall cause the transmittal thereof together
with the entire records of the case to the Office of the Secretary or the Bureau, as the case may be.
Section 18. Finality of Decision. - Where no appeal is filed within the ten-day period, the Bureau and
Regional Director or Med-Arbiter, as the case may be, shall enter the finality of the decision in the
records of the case and cause the immediate implementation thereof.
Section 19. Period to reply. - A reply to the appeal may be filed by any party to the complaint or
petition within ten (10) days from receipt of the memorandum of appeal. The reply shall be filed
directly with the Bureau or the Office of the Secretary, as the case may be.
Section 20. Decision of the Bureau/Office of the Secretary. - The Bureau Director or the Secretary, as
the case may be, shall have twenty (20) days from receipt of the entire records of the case within
which to decide the appeal. The filing of the memorandum of appeal from the decision of the Med-
Arbiter or Regional Director and Bureau Director stays the implementation of the assailed decision.
The Bureau or Office of the Secretary may call the parties to a clarificatory hearing in aid of its
appellate jurisdiction.
Section 21. Finality of Decision of Bureau/Office of the Secretary. - The decision of the Bureau or the
Office of the Secretary shall become final and executory after ten (10) days from receipt thereof by the
parties, unless a motion for its reconsideration is filed by any party therein within the same period.
Only one (1) motion for reconsideration of the decision of the Bureau or the Office of the Secretary in
the exercise of their appellate jurisdiction shall be allowed.
Section 22. Execution of decision. - The decision of the Med-Arbiter and Regional Director shall
automatically be stayed pending appeal with the Bureau. The decision of the Bureau in the exercise
ofits appellate jurisdiction shall be immediately ex ecutory upon issuance of entry of final judgment.
The decision of the Bureau in the exercise of its original jurisdiction shall automatically be stayed
pending appeal with the Office of the Secretary. The decision of the Office of the Secretary shall be
immediately executory upon issuance of entry of final judgment.
Section 23. Transmittal of records to the Regional Office/Bureau. - Within forty-eight (48) hours from
notice of receipt of decision by the parties and finality of the decision, the entire records of the case
shall be remanded to the Bureau or Regional Office of origin for implementation. The implementation
of the decision shall not be stay ed unless restrained by the appropriate court.
 Abbot Laboratories Philipines, Inc. v Abbot Laboratories Employees Union (2000)

Company: Abbott Laboratories Philippines, Inc.
Union/s: Abbott Laboratories Employees Union
Issue: Appellate Jurisdiction of the Sec. of Labor and Employment over orders of the BLR
20 | P a g e
Doctrine: The appellate jurisdiction of the Secretary .of Labor and Employment is limited only to a
review of cancellation proceedings decided by the Bureau of Labor Relations in the exercise of its
exclusive and original jurisdiction. The Secretary of Labor and Employment has no jurisdiction over
decisions of the Bureau of Labor Relations rendered in the exercise of its appellate power to review the
decision of the Regional Director in a petition to cancel the union's certificate of registration, said
decisions being final and inappealable.
3. National Conciliation Mediation Board
Art. 219 (c)

c. "Board" means the National Conciliation and Mediation Board established under Executive Order
No. 126.
Art. 260 (c) (d) (e) Procedure in collective bargaining.

The following procedures shall be observed in collective bargaining:
c. If the dispute is not settled, the Board shall intervene upon request of either or both parties or at its
own initiative and immediately call the parties to conciliation meetings. The Board shall have the
power to issue subpoenas requiring the attendance of the parties to such meetings. It shall be the uty
of the parties to participate fully and promptly in the conciliation meetings the Board may call;
d. During the conciliation proceedings in the Board, the parties are prohibited from doing any act
which may disrupt or impede the early settlement of the disputes; and
e. The Board shall exert all efforts to settle disputes amicably and encourage the parties to submit their
case to a voluntary arbitrator. (As amended by Section 20, Republic Act No. 6715, March 21, 1989)
4. Voluntary Arbitration, Voluntary Arbitration Advisory Council
Art. 219 (d)

d. "Council" means the Tripartite Voluntary Arbitration Advisory Council established under Executive
Order No. 126, as amended.
Art. 272 Grievance machinery and voluntary arbitration.

The parties to a Collective Bargaining Agreement shall include therein provisions that will ensure the
mutual observance of its terms and conditions. They shall establish a machinery for the adjustment
and resolution of grievances arising from the interpretation or implementation of their Collective
Bargaining Agreement and those arising from the interpretation or enforcement of company personnel
policies.
All grievances submitted to the grievance machinery which are not settled within seven (7) calendar
days from the date of its submission shall automatically be referred to voluntary arbitration prescribed
in the Collective Bargaining Agreement.
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For this purpose, parties to a Collective Bargaining Agreement shall name and designate in advance a
Voluntary Arbitrator or panel of Voluntary Arbitrators, or include in the agreement a procedure for the
selection of such Voluntary Arbitrator or panel of Voluntary Arbitrators, preferably from the listing of
qualified Voluntary Arbitrators duly accredited by the Board. In case the parties fail to select a
Voluntary Arbitrator or panel of Voluntary Arbitrators, the Board shall designate the Voluntary
Arbitrator or panel of Voluntary Arbitrators, as may be necessary, pursuant to the selection procedure
agreed upon in the Collective Bargaining Agreement, which shall act with the same force and effect as
if the Arbitrator or panel of Arbitrators has been selected by the parties as described above.
Art. 273 Jurisdiction of Voluntary Arbitrators or 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 greement.
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.
Art. 274 Jurisdiction over other labor disputes.

The Voluntary Arbitrator or panel of Voluntary Arbitrators, upon agreement of the parties, shall also
hear and decide all other labor disputes including unfair labor practices and bargaining deadlocks.
Administrative Code, Title VII, Sec. 23. (supra on page 10)
 AMA Computer College – Santiago City, Inc. v. Nacino (2008)

Company: Ama Computer College-Santiago City, Inc.
Employee: Chelly P. Nacino
Issue: Jurisdiction of Voluntary Arbitrators
Doctrine: The Court noted, however, that the voluntary arbitrator is a government instrumentality
within the contemplation of Section 9 of Batas Pambansa Blg. (BP) 129 which provides for the
appellate jurisdiction of the Court of Appeals. The decisions of the voluntary arbitrator are akin to
those of the Regional Trial Court, and, therefore, should first be appealed to the Court of Appeals
before being elevated to this Court. We are not unmindful of instances when certiorari was granted
despite the availability of appeal, such as (a) when public welfare and the advancement of public policy
dictates; (b) when the broader interest of justice so requires; (c) when the writs issued are null and
22 | P a g e
void; or (d) when the questioned order amounts to an oppressive exercise of judicial authority.
However, none of these recognized exceptions attends the case at bar.
5. Administrative Intervention for Dispute Avoidance
DOLE Circular No. 1, series 2006 – ADMINISTRATIVE INTERVENTION FOR DISPUTE AVOIDANCE
In line with the objectives of the Republic Act No. 9285, Executive Order No. 523 dated 07 April 2006,
and the mandate of the Department of Labor and Employment to promote industrial peace, this
administrative procedure for the voluntary settlement of labor disputes is hereby established.
1. Either or both the employer and the certified collective bargaining agent (or the representative of
the employees where there is no certified bargaining agent) may voluntarily bring to the Office of the
Secretary of Labor and Employment, through a REQUEST FOR INTERVENTION, any potential or ongoing
dispute defined below.
A potential or ongoing dispute refers to:
a. a live and active dispute;
b. that may lead to a strike or lockout or to massive labor unrest; and
c. is not the subject of any complaint or notice of strike or lockout at the time a REQUEST FOR
INTERVENTION is made.
This recourse is separate from the established dispute resolution modes of mediation, conciliation and
arbitration under the Labor Code, and is an alternative to other voluntary modes of dispute resolution
such as the voluntary submission of a dispute to the Regional Director for mediation, to the National
Conciliation and Mediation Board (NCMB) for preventive mediation, or to the intervention of a regional
or local tripartite peace council for the same purpose.
2. All REQUESTS shall be in writing and filed with the Office of the Secretary. A REQUEST shall state:
a. the name and address of the employer;
b. the name of the certified bargaining agent, or the employee representative duly designated in
writing by a majority of the employees where there is no collective bargaining agent;
c. the number of employees affected by the potential or ongoing dispute; and
d. a brief description of the potential or ongoing dispute.
3. Upon receipt of the REQUEST, the Office of the Secretary shall forthwith notify the parties and invite
them for conference.
The conference for REQUESTS coming from the National Capital Region, Regions III, IV-A or IV-B shall
be held at the Office of the Secretary of Labor and Employment unless the Secretary otherwise directs.
The conference for REQUESTS coming from the other regions shall be conducted by the Regional
Director for the Secretary.
4. The Office of the Secretary or the Regional director, in the proper case, shall proceed to intervene
after the parties shall have manifested that;
a. they voluntarily submit their potential or ongoing dispute to intervention by the Office of the
Secretary of Labor and Employment;
b. there is no pending notice of strike or lockout or any related complaint in relation with their
potential or ongoing dispute;
c. they shall refrain from any strike or lockout or any form of work stoppage or from filing any related
complaint while the Secretary's intervention is in effect; and
d. they shall abide by the agreement reached, whose terms may be enforced through the appropriate
writs issued by the Secretary of Labor and Employment.
All agreements settling the dispute shall be in writing and signed by the parties as well as the official
who mediated the dispute.
23 | P a g e
5. The parties and officials or employees of the Department of Labor and Employment who took part in
the intervention proceedings shall not testify in any court or body regarding the disclosures,
submissions or positions made by the parties in these proceedings.
6. If the intervention fails, either or both parties may avail themselves of the remedies provided under
the Labor Code. Alternatively, the parties may submit their dispute to the Office of the Secretary for
voluntary arbitration.
Such voluntary arbitration shall be limited to the issues defined in the parties' submission to voluntary
arbitration agreement and shall be decided on the basis of the parties' position papers and submitted
evidence.
The Office of the Secretary shall resolve the dispute within sixty (60) days from the parties' submission
of the dispute for resolution.
7. This circular shall take effect fifteen (15) days after publication in a newspaper of general
publication.
Done in the City of Manila, Philippines, 11 August 2006.
E. Industrial Peace
Art. 218 A (f)

It is the policy of the state
f. To ensure a stable but dynamic and just industrial peace;
Art. 287 Study of labor-management relations.

The Secretary of Labor shall have the power and it shall be his duty to inquire into:
a. the existing relations between employers and employees in the Philippines;
b. the growth of associations of employees and the effect of such associations upon employer-
employee relations;
c. the extent and results of the methods of collective bargaining in the determination of terms and
conditions of employment;
d. the methods which have been tried by employers and associations of employees for maintaining
mutually satisfactory relations;
e. desirable industrial practices which have been developed through collective bargaining and other
voluntary arrangements;
f. the possible ways of increasing the usefulness and efficiency of collective bargaining for settling
differences;
g. the possibilities for the adoption of practical and effective methods of labor-management
cooperation;
h. any other aspects of employer-employee relations concerning the promotion of harmony and
understanding between the parties; and
i. the relevance of labor laws and labor relations to national development.
The Secretary of Labor shall also inquire into the causes of industrial unrest and take all the necessary
steps within his power as may be prescribed by law to alleviate the same, and shall from time to time
24 | P a g e
recommend the enactment of such remedial legislation as in his judgment may be desirable for the
maintenance and promotion of industrial peace.
F. Worker Participation in Decision and Policy making Processes Affecting Rights, Duties and
Welfare
Art. 218 A (g)

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.
Art. 266 par. 2

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. (As amended by Section 22, Republic Act No. 6715, March 21, 1989)
Art. 291 (g)

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 the shared responsibility and mutual respect in order to ensure industrial peace and improvement
in productivity, working conditions and the quality of working life. (Incorporated by Batas Pambansa
Bilang 130, August 21, 1981)
 Phil. Airlines, Inc. v. NLRC (1993)

Company: Philippine Airlines, Inc.
Union/s: Philippine Airlines Employees Association
Issue: Limitations of Management Prerogative regarding rules of conduct or discipline
Doctrine: Verily, a line must be drawn between management prerogatives regarding business
operations per se and those which affect the rights of the employees. In treating the latter,
management should see to it that its employees are at least properly informed of its decisions or
modes action. Indeed, industrial peace cannot be achieved if the employees are denied their just
participation in the discussion of matters affecting their rights. Thus, even before Article 211 of the
labor Code (P.D. 442) was amended by Republic Act No. 6715, it was already declared a policy of the
State, "(d) To promote the enlightenment of workers concerning their rights and obligations . . . as
employees." This was, of course, amplified by Republic Act No 6715 when it decreed the "participation
of workers in decision and policy making processes affecting their rights, duties and welfare."
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III. RIGHT TO SELF ORGANIZATION
A. Sources and Bases of the Right to Self-Organization
 S.S. Ventures International v. S.S. Ventures Labor Union (2008)
Company: S.S. Ventures International, Inc.
Union/s: S.S. Ventures Labor Union
Issue: Decertification of a Labor Union Due to the Inclusion of Ineligible Employees
Doctrine: The right to form, join, or assist a union is specifically protected by Art. XIII, Section 3 of the
Constitution and such right, according to Art. III, Sec. 8 of the Constitution and Art. 246 of the Labor
Code, shall not be abridged. Once registered with the DOLE, a union is considered a legitimate labor
organization endowed with the right and privileges granted by law to such organization.
The Court, has in previous cases, said that to decertify a union, it is not enough to show that the union
includes ineligible employees in its membership. It must also be shown that there was
misrepresentation, false statement, or fraud in connection with the application for registration and the
supporting documents, such as the adoption or ratification of the constitution and by-laws or
amendments thereto and the minutes of ratification of the constitution or by-laws, among other
documents.
1. Universal Declaration of Human Rights
2. ILO Convention No. 87 and 98
3. Philippine Constitution
4. Labor Code
Art. 252 Coverage and employees’ right to self-organization.

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 self-
organization 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)
Art. 253 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)
Art. 256 Non-abridgment of right to self-organization.

It shall be unlawful for any person to restrain, coerce, discriminate against or unduly interfere with
employees and workers in their exercise of the right to self-organization. Such right shall include the
right to form, join, or assist labor organizations for the purpose of collective bargaining through
representatives of their own choosing and to engage in lawful concerted activities for the same
26 | P a g e
purpose for their mutual aid and protection, subject to the provisions of Article 264 of this Code. (As
amended by Batas Pambansa Bilang 70, May 1, 1980)
Art. 219 (f)

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.
Book V, Rule II – COVERAGE OF THE RIGHT TO SELF-ORGANIZATION
Section 1. Policy.
It is the policy of the State to promote the free and responsible exercise of the right to self-
organization through the establishment of a simplified mechanism for the speedy registration of labor
unions and workers associations, determinatio n of representation status and resolution of inter/intra-
union and other related labor relations disputes. Only legitimate or registered labor unions shall have
the right to represent their members fo r collective bargaining and ot her purposes. Workers'
associations shall have the right to represent their members for purposes other than collective
bargaining.
Section 2. Who may join labor unions and workers' associations.

All persons employed in commercial, industrial and agricultural enterprises, including employees of
government owned or controlled corporations without original charters established under the
Corporation Code, as well as employees of religious, charitable, medical or educational institutions
whether operating for profit or not, shall have the right to self-organization and to form, jo in or assist
labor unions for purposes of collective bargaining: provided, however, that supervisory em ployees
shall not be eligible for membership in a labor union of the rank-and-file employees but may form , join
or assist separate labor unions of their own. Managerial employees shall not be eligible to form, join or
assist any labor unions for purposes of collective bargaining. Alien employees with valid working
permits issued by the Department may xercise the right to self-organization and join or assist labor
unions for purposes of collective bargaining if they are nationals of a country which grants the same or
similar rights to Filipino workers, as certified by the Department of Foreign Affairs.
For purposes of this section, any employee, whether employed for a definite period or not, shall
beginning on the first day of his/her service, be eligible for membership in any labor organization. All
other workers, including ambulant, intermittent and other workers, the self-employed, rural workers
and those without any definite employers may form labor organizations for their mutual aid and
protection and other legitimate purposes except collective bargaining.
 UST Faculty Union v. Bitonio (1999)

Company: University of Santo Tomas
Union/s: UST Faculty Union
Issue: Requirement of Membership to Participate in Union Leaders’ Election
27 | P a g e
Doctrine: Self-organization is a fundamental right guaranteed by the Philippine Constitution and the
Labor Code. Employees have the right to form, join or assist labor organizations for the purpose of
collective bargaining or for their mutual aid and protection. Whether employed for a definite period or
not, any employee shall be considered as such, beginning on his first day of service, for purposes of
membership in a labor union. Corollary to this right is the prerogative not to join, affiliate with or assist
a labor union. Therefore, to become a union member, an employee must, as a rule, not only signify the
intent to become one, but also take some positive steps to realize that intent. The procedure for union
membership is usually embodied in the union's constitution and bylaws. An employee who becomes a
union member acquires the rights and the concomitant obligations that go with this new status and
becomes bound by the union's rules and regulations.
a) U.S. Laws
1) National Labor Relations Act (Wagner Act)
National Labor Relations Act (Wagner Act) (from midterms reviewer in FIGHT CD)
 Purposes (according to the U.S. National Labor Relations Board):
o Protect the rights of employees and employers
o Encourage collective bargaining
o Curtail certain private sector labor and management practices, which can harm the
general welfare of workers, businesses and the U.S. economy.
 Key principles:
o Encouraging the practice and procedure of collective bargaining
o Protecting the exercise by workers of full freedom of association, self-organization, and
designation of representatives of their own choosing, for the purpose of negotiating the
terms and conditions of their employment or other mutual aid or protection
 Created the National Labor Relations Board, with similar powers and functions to the NLRC
Listed unfair labor practices committed by employers
2) US Labor-Management Relations Act of 1947 (Taft-Hartley Act)
U.S. Labor- Management Rel ations Act of 1947 (Taft - Hartley Act) (from midterms reviewer in FIGHT
CD)
 Enacted on June 23, 1947 (overcame President Truman’s veto)

 Restricted the activities and power of labor unions
Amended the Wagner Act by adding unfair labor practices committed by labor organizations
b) Pre Labor Code
1) Commonwealth Act No. 103
Commonwealth Act No. 103 (from midterms reviewer in FIGHT CD)
 Created the Court of Industrial Relations

 Jurisdiction: entire Philippines
 Powers:
28 | P a g e
o Decide/settle any question/controversy/dispute between employers -employees and
landlords- tenants, and regulate the relations between them
o Fix minimum wages for laborers and maximum rentals for tenants
o Enforce compulsory arbitration between employers - employees and landlords-tenants
o Provided penalties for violations of CIR orders
2) Industrial Peace Act (R.A. 875 of 1953)
Industrial Peace Act (R.A. 875 of 1953) (from midterms reviewer in FIGHT CD)
 Now repealed by the Labor Code

 Policy:
o Eliminate causes of industrial unrest by encouraging and protecting employees’ right to
self - organization
o Promote industrial peace, and general welfare, health and safety, an d best interests of
employers and employees, by the settlement of issues re: terms and conditions of
employment through collective bargaining
o Advance the settlement of issues between employers and employees through collective
bargaining by making available governmental facilities for conciliation and mediation
o Avoid or minimize differences by prescribing rules for negotiation and administration of
CBAs and notice of changes
Enumerates unfair labor practices by employers and by labor organizations, but these are fewer than
those currently listed down in the Labor Code
B. Extent and Scope of Right
Art. 252. (supra on page 26)

 Pan-American World Airways, Inc. v. Pan-American Employees Association (1969)

Company: Pan American World Airways, Inc.
Union/s: Pan American Employees Association
Issue: Exclusion from a return-to-work order five union officials on the ground of having led an illegal
strike
Doctrine: The greater offense is to the labor movement itself, more specifically to the right of self-
organization. There is both a constitutional and statutory recognition that laborers have the right to
form unions to take care of their interests vis-a-vis their employers. Their freedom organizations would
29 | P a g e
be rendered nugatory if they could not choose their own leaders to speak on their behalf and to
bargain for them.
 Kapatiran sa Meat and Canning Division v. Calleja (1988)

Company: Universal Robina Corporation – Meat and Canning Division
Union/s: Kapatiran sa Meat and Canning Division TUPAS Local Chapter No. 1027 (or "TUPAS" for
brevity) & Meat and Canning Division New Employees and Workers United Labor Organization
(or "NEW ULO" for brevity)
Issue: Right of Iglesia ni Kristo members to self-organization
Doctrine: This Court's decision in Victoriano vs. Elizalde Rope Workers' Union, 59 SCRA 54, upholding
the right of members of the IGLESIA NI KRISTO sect not to join a labor union for being contrary to their
religious beliefs, does not bar the members of that sect from forming their own union. The public
respondent correctly observed that the "recognition of the tenets of the sect ... should not infringe on
the basic right of self-organization granted by the constitution to workers, regardless of religious
affiliation."
 Reyes v. Trajano (1992)

Company: Tri-Union Industries Corporation
Union/s: Tri-Union Employees Union-Organized Labor Association in Line Industries and Agriculture
(TUEU-OLALIA) & Trade Union of the Philippines and Allied Services (TUPAS)
Issue: Rights of Iglesia ni Kristo to vote in a certification election
Doctrine: The right of self-organization includes the right to organize or affiliate with a labor union or
determine which of two or more unions in an establishment to join, and to engage in concerted
activities with co-workers for purposes of collective bargaining through representatives of their own
choosing, or for their mutual aid and protection, i.e., the protection, promotion, or enhancement of
their rights and interests.
Logically, the right NOT to join, affiliate with, or assist any union, and to disaffiliate or resign from a
labor organization, is subsumed in the right to join, affiliate with, or assist any union, and to maintain
membership therein. The right to form or join a labor organization necessarily includes the right to
refuse or refrain from exercising said right. It is self-evident that just as no one should be denied the
exercise of a right granted by law, so also, no one should be compelled to exercise such a conferred
right. The fact that a person has opted to acquire membership in a labor union does not preclude his
subsequently opting to renounce such membership.
C. Worker Qualification
Art. 291 (c)

c. Any employee, whether employed for a definite period or not, shall, beginning on his first day of
service, be considered as an employee for purposes of membership in any labor union. (As amended
by Section 33, Republic Act No. 6715)
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D. Covered Employees/Workers
1987 Const. Art. III, Sec. 8

The right of the people, including those employed in the public and private sectors, to form unions,
associations, or societies for purposes not contrary to law shall not be abridged.
1987 Const., Art. XIII, Sec. 3 (supra on page 7)
Book V, Rule II, Sec. 2 (supra on page 27)
1. All Employees
Art. 219 (f) (supra on page 27)
Art. 219 (m)

(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
Book V, Rule I, Sec. 1 (xx), (nn)

(nn) "Rank-and-File Employee" refers to an employee whose functions are neither managerial nor
supervisory in nature.
(xx) "Supervisory Employee" refers to an employee w ho, in the interest of the employer, effectively
recommends managerial actions and the exercise of such authority is not merely routinary or clerical
but requires the use of independent judgment.
 FEU – Dr. Nicanor Reyes Medical Foundation, Inc. v. Trajano

Company: FEU-Dr. Nicanor Reyes Medical Foundation, Inc.
Union/s: Far Eastern University Dr. Nicanor Reyes Medical Foundation, Inc. Alliance of Filipino Workers
(AFW)
Issue: Covered Employees (employees of commercial, industrial and charitable, medical or educational
institutions whether operating for profit or not)
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Doctrine: At the time private respondent filed its petition for certification election on February 13,
1986, Article 244 of the Labor Code was already amended by Batas Pambansa Bilang 70. Under the
aforequoted provision, there is no doubt that rank and file employees of nonprofit medical institutions
(as herein petitioner) are now permitted to form, organize or join labor unions of their choice for
purposes of collective bargaining. Since private respondent had complied with the requisites provided
by law for calling a certification election, it was incumbent upon respondent Director to conduct such
certification election to ascertain the bargaining representative of petitioner's employees.
 Kapatiran sa Meat and Canning Division v. Calleja (1988)

Company: Universal Robina Corporation – Meat and Canning Division
Union/s: Kapatiran sa Meat and Canning Division TUPAS Local Chapter No. 1027 (or "TUPAS" for
brevity) & Meat and Canning Division New Employees and Workers United Labor Organization
(or "NEW ULO" for brevity)
Issue: Right of Iglesia ni Kristo members to self-organization
Doctrine: This Court's decision in Victoriano vs. Elizalde Rope Workers' Union, 59 SCRA 54, upholding
the right of members of the IGLESIA NI KRISTO sect not to join a labor union for being contrary to their
religious beliefs, does not bar the members of that sect from forming their own union. The public
respondent correctly observed that the "recognition of the tenets of the sect ... should not infringe on
the basic right of self-organization granted by the constitution to workers, regardless of religious
affiliation."
2. Government Corporate Employees
1987 Const. Art. IX-B, Sec. 2 (1) (5)

Section 2. (1) The civil service embraces all branches, subdivisions, instrumentalities, and agencies of
the Government, including government-owned or controlled corporations with original charters.
(5) The right to self-organization shall not be denied to government employees.
EO 180 – PROVIDING GUIDELINES FOR THE EXERCISE OF THE RIGHT TO ORGANIZE OF GOVERNMENT
EMPLOYEES, CREATING A PUBLIC SECTOR LABOR-MANAGEMENT COUNCIL, AND FOR OTHER PURPOSES
In accordance with the provisions of the 1987 Constitution, I, CORAZON C. AQUINO, President of the
Philippines, do hereby order:
I. Coverage
Sec. 1. This Executive Order applies to all employees of all branches, subdivisions, instrumentalities,
and agencies, of the Government, including government-owned or controlled corporations with
original charters. For this purpose, employees, covered by this Executive Order shall be referred to as
"government employees".
Sec. 2. All government employees can form, join or assist employees' organizations of their own
choosing for the furtherance and protection of their interests. They can also form, in conjunction with
appropriate government authorities, labor-management committees, works councils and other forms
of workers' participation schemes to achieve the same objectives.
Sec. 3. High-level employees whose functions are normally considered as policy-making or managerial
or whose duties are of a highly confidential nature shall not be eligible to join the organization of rank-
and-file government employees.
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Sec. 4. The Executive Order shall not apply to the members of the Armed Forces of the Philippines,
including police officers, policemen, firemen and jail guards.
II. Protection of the Right to Organize
Sec. 5. Government employees shall not be discriminated against in respect of their employment by
reason of their membership in employees' organizations or participation in the normal activities of
their organization. Their employment shall not be subject to the condition that they shall not join or
shall relinquish their membership in the employees' organizations.
Sec. 6. Government authorities shall not interfere in the establishment, functioning or administration
of government employees' organizations through acts designed to place such organizations under the
control of government authority.
III. Registration of Employees' Organization
Sec. 7. 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 right 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.
IV. Sole and Exclusive Employees' Representatives
Sec. 9. The appropriate organizational unit shall be the employers unit consisting of rank-and-file
employees unless circumstances otherwise require.
Sec. 10. The duly registered employees' organization having the support of the majority of the
employees in the appropriate organizational unit shall be designated as the sole and exclusive
representative of the employees.
Sec. 11. A duly registered employees' organization shall be accorded voluntary recognition upon a
showing that no other employees' organization is registered or is seeking registration, based on
records of the Bureau of Labor Relations, and that the said organizations has the majority support of
the rank-and-file employees in the organizational unit.
Sec. 12. Where there are two or more duly registered employees' organizations in the appropriate
organizational unit, the Bureau of Labor Relations shall, upon petition, order the conduct of a
certification election and shall certify the winner as the exclusive representative of the rank-and-file
employees in said organization unit.
D. Terms and Conditions of Employment in Government Services
Sec. 13. Terms and conditions of employment or improvements thereof, except those that are fixed by
law, may be the subject of negotiations between duly recognized employees' organizations and
appropriate government authorities.
VI. Peaceful Concerted Activities and Strikes
Sec. 14. The Civil Service laws and rules governing concerted activities and strikes in the government
service shall be observed, subject to any legislation that may be enacted by Congress.
VII. Public Sector Labor-Management Council
Sec. 15. A Public Sector Labor Management Council, hereinafter referred to as the Council, is hereby
constituted to be composed of the following:
33 | P a g e
1) Chairman, Civil Service Commission Chairman
2) Secretary, Department of Labor and Employment Vice Chairman
3) Secretary, Department of Finance Member
4) Secretary, Department of Justice Member
5) Secretary, Department of Budget and Management Member
The Council shall implement and administer the provisions of this Executive Order. For this purpose,
the Council shall promulgate the necessary rules and regulations to implement this Executive Order.
VIII. Settlement of Disputes
Sec. 16. The Civil Service and labor laws and procedures, whenever applicable, shall be followed in the
resolution of complaints, grievances and cases involving government employees. In case any dispute
remains unresolved after exhausting all the available remedies under existing laws and procedures, the
parties may jointly refer the dispute to the Council, for appropriate action.
IX. Effectivity
Sec. 17. This Executive Order shall take effect immediately.
Done in the City of Manila, this 1st day of June, in the year of Our Lord, nineteen hundred and eighty-
seven.
Art. 253 Right of employees in the public service.

service shall have the right to form associations for purposes not contrary to law. (As amended by
Executive Order No. 111, December 24, 1986)
3. Supervisory Employees
Art. 254 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 a labor organization of the rank-and-file employees
but may join, assist or form separate labor organizations of their own. (As amended by Section 18,
Republic Act No. 6715, March 21, 1989)
Book V, Rule I, Sec. 1 (xx), (hh), (nn)

(xx) "Supervisory Employee" refers to an employee w ho, in the interest of the employer, effectively
recommends managerial actions and the exercise of such authority is not merely routinary or clerical
but requires the use of independent judgment.
(hh) "Managerial Employee" refers to an employee who is vested with powers or prerogatives to lay
down and execute management pol icies or to hire, transfe r, suspend, layoff, recall, discharge, assign
or discipline employees.
34 | P a g e
(nn) "Rank-and-File Employee" refers to an empl oyee whose functions are neither managerial nor
supervisory in nature.
Art. 219 (m) (supra on page 31)
 Toyota Motor Phil. Corp. v Toyota Phil. Corp. Labor Union (1997)
Company: Toyota Motor Corporation
Union/s: Toyota Motor Philippines Corporation Labor Union (TMPCLU)
Issue: Effect of inclusion of Rank and File and Supervisory Employees in a single Union
Doctrine: Clearly, based on this provision (Art. 245), a labor organization composed of both rank-and-
file and supervisory employees is no labor organization at all. It cannot, for any guise or purpose, be a
legitimate labor organization. Not being one, an organization which carries a mixture of rank-and-file
and supervisory employees cannot possess any of the rights of a legitimate labor organization,
including the right to file a petition for certification election for the purpose of collective bargaining. It
becomes necessary, therefore, anterior to the granting of an order allowing a certification election, to
inquire into the composition of any labor organization whenever the status of the labor organization is
challenged on the basis of Article 245 of the Labor Code.
Note: No longer applicable due to amendments of the Labor Code on automatic removal of the
ineligible members.
 Tagaytay Highlands International Golf Club, Inc. v Tagaytay Highlands Employees Union (2003)
Company: Tagaytay Highlands International Golf Club, Inc.
Union/s: Tagaytay Highlands Employees Union – Philippine Transport and General Workers
Organization (PTGWO)
Issue: Effect of inclusion of Rank and File and Supervisory Employees in a single Union
Doctrine: After a certificate of registration is issued to a union, its legal personality cannot be subject to
collateral attack. It may be questioned only in an independent petition for cancellation in accordance
with Section 5 of Rule V, Book IV of the IRR. The inclusion in a union of disqualified employees is not
among the grounds for cancellation, unless such inclusion is due to misrepresentation, false statement
or fraud under the circumstances enumerated in Sections (a) and (c) of Article 239 of above-quoted
Article 239 of the Labor Code.
As for the lack of mutuality of interest argument of petitioner, it, at all events, does not lie given, as
found by the court a quo, its failure to present substantial evidence that the assailed employees are
actually occupying supervisory positions. What is essential is the nature of the employee’s function and
not the nomenclature or titlegiven to the job which determines whether the employee has rank-and-
file or managerial status or whether he is a supervisory employee.
Note: Legal personality still cannot be subject to collateral attack. But the issue of inclusion of R&F and
Supervisory employees in one union is not a ground for cancellation, only automatically deemed
removed (RA 9481).
35 | P a g e
4. Aliens
Art. 283 Prohibition against aliens; exceptions.

All aliens, natural or juridical, as well as foreign organizations are strictly prohibited from engaging
directly or indirectly in all forms of trade union activities without prejudice to normal contacts between
Philippine labor unions and recognized international labor centers: Provided, however, That aliens
working in the country with valid permits issued by the Department of Labor and Employment, may
exercise the right to self-organization and join or assist labor organizations of their own choosing for
purposes of collective bargaining: Provided, further, That said aliens are nationals of a country which
grants the same or similar rights to Filipino workers. (As amended by Section 29, Republic Act No.
6715, March 21, 1989
Art. 284 Regulation of foreign assistance.

a. No foreign individual, organization or entity may give any donations, grants or other forms of
assistance, in cash or in kind, directly or indirectly, to any labor organization, group of workers or any
auxiliary thereof, such as cooperatives, credit unions and institutions engaged in research, education or
communication, in relation to trade union activities, without prior permission by the Secretary of
Labor.
"Trade union activities" shall mean:
1. organization, formation and administration of labor organization;
2. negotiation and administration of collective bargaining agreements;
3. all forms of concerted union action;
4. organizing, managing, or assisting union conventions, meetings, rallies, referenda, teach-ins,

seminars, conferences and institutes;
5. any form of participation or involvement in representation proceedings, representation elections,

consent elections, union elections; and
6. other activities or actions analogous to the foregoing.
b. This prohibition shall equally apply to foreign donations, grants or other forms of assistance, in cash
or in kind, given directly or indirectly to any employer or employer’s organization to support any
activity or activities affecting trade unions.
c. The Secretary of Labor shall promulgate rules and regulations to regulate and control the giving and
receiving of such donations, grants, or other forms of assistance, including the mandatory
36 | P a g e
5. Security Guards
 Manila Electric Co. v. Sec. of Labor (1991)

Company: Manila Electric Company (MERALCO)
Union/s: Staff and Technical Employees Association of MERALCO (STEAM-PCWF) & the First Line
Association of Meralco Supervisory Employees. (FLAMES)
Issue: Security Guards’ right to self-organization
Doctrine: On December 24, 1986, Pres. Corazon C. Aquino issued E.O. No. 111 which eliminated the
above-cited provision on the disqualification of security guards. What was retained was the
disqualification of managerial employees. The implementing rules of RA 6715, therefore, insofar as
they disqualify security guards from joining a rank and file organization are null and void, for being not
germane to the object and purposes of EO 111 and RA 6715 upon which such rules purportedly derive
statutory moorings. While therefore under the old rules, security guards were barred from joining a
labor organization of the rank and file, under RA 6715, they may now freely join a labor organization of
the rank and file or that of the supervisory union, depending on their rank. By accommodating
supervisory employees, the Secretary of Labor must likewise apply the provisions of RA 6715 to
security guards by favorably allowing them free access to a labor organization, whether rank and file or
supervisory, in recognition of their constitutional right to self-organization.
E. Excluded Employees/Workers
1. Managerial Employees
Art. 82 Termination by employer.

An employer may terminate an employment for any of the following causes:
a. Serious misconduct or willful disobedience by the employee of the lawful orders of his employer or
representative in connection with his work;
b. Gross and habitual neglect by the employee of his duties;
c. Fraud or willful breach by the employee of the trust reposed in him by his employer or duly
authorized representative;
d. Commission of a crime or offense by the employee against the person of his employer or any
immediate member of his family or his duly authorized representatives; and
e. Other causes analogous to the foregoing.
Art. 219 (m) (supra on page 31)
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Book V, Rule I, Sec. 1 (xx), (nn) (supra on page 31)
 A.D. Gothong Mfg Corp. v Hon. Nieves Confessor (1999)

Company: A. D. Gothong Manufacturing Corporation
Union/s: A. D. Gothong Manufacturing Corporation Employees Union-ALU
Issue: Inclusion-Exclusion of Managerial Employees
Doctrine: Under Rule I, Section 2 (c), Book III of the Implementing Rules of the Labor Code, to be a
member of managerial staff, the following elements must concur or co-exist, to wit:
(1) that his primary duty consists of the performance of work directly related to management policies;
(2) that he customarily and regularly exercises discretion and independent judgment in the
performance of his functions;
(3) that he regularly and directly assists in the management of the establishment; and
(4) that he does not devote more than twenty percent of his time to work other than those described
above.
 United Pepsi-Cola Supervisory Union v Laguesma (1998)

Company: Pepsi-Cola Products Philippines, Inc
Union/s: United Pepsi-Cola Supervisory Union
Issue: Inclusion-Exclusion of Managerial Employees
Doctrine: The term "manager" generally refers to "anyone who is responsible for subordinates and
other organizational resources." 1 As a class, managers constitute three levels of a pyramid:
Top management
————————
Middle Management
——————————
First-Line Management (also called Supervisor)
====================
Operatives or Operating Employees
FIRST-LINE MANAGERS —First-line managers direct operating employees only; they do not supervise
other managers
MIDDLE MANAGERS — Middle managers direct the activities of other managers and sometimes also
those of operating employees. Middle managers' principal responsibilities are to direct the activities
38 | P a g e
that implement their organizations' policies and to balance the demands of their superiors with the
capacities of their subordinates.
TOP MANAGERS — Composed of a comparatively small group of executives, top management is
responsible for the overall management of the organization. It establishes operating policies and
guides the organization's interactions with its environment.
 Paper Industries Corp. of the Philippines v. Laguesma (2000)

Company: Paper Industries Corporation of the Philippines (PICOP)
Union/s: PICOP-Bislig Supervisory and Technical Staff Employees Union & Federation of Free Workers
(FFW) & Associated Labor Union (ALU)
Issue: Nature of authority exercised to be deem
Doctrine: Thus, the mere fact that an employee is designated "manager" does notipso facto make him
one. Designation should be reconciled with the actual job description of the employee, for it is the job
description that determines the nature of employment. PICOP's contention that the subject section
heads and unit managers exercise the authority to hire and fire is ambiguous and quite misleading for
the reason that any authority they exercise is not supreme but merely advisory in character. Thus,
where such power, which is in effect recommendatory in character, is subject to evaluation, review
and final action by the department heads and other higher executives of the company, the same,
although present, is not effective and not an exercise of independent judgment as required by law.
2. Confidential Employees
 San Miguel Corporation Supervisors and Exempt Employees Union v. Laguesma (1997)
Company: SMC Magnolia Poultry Products Plants of Cabuyao, San Fernando and Otis
Union/s: San Miguel Corporation Supervisors and Exempt Union
Issue: Requirements to consider an employee as a confidential employee
Doctrine: Confidential employees are those who (1) assist or act in a confidential capacity, (2) to
persons who formulate, determine, and effectuate management policies in the field of labor
relations. The two criteria are cumulative, and both must be met if an employee is to be considered a
confidential employee – that is, the confidential relationship must exist between the employees and
his supervisor, and the supervisor must handle the prescribed responsibilities relating to labor
relations. The exclusion from bargaining units of employees who, in the normal course of their duties,
become aware of management policies relating to labor relations is a principal objective sought to be
accomplished by the “confidential employee rule.” The broad rationale behind this rule is that
employees should not be placed in a position involving a potential conflict of interests. “Management
should not be required to handle labor relations matters through employees who are represented by
the union with the company is required to deal and who in the normal performance of their duties may
obtain advance information of the company’s position with regard to contract negotiations, the
disposition of grievances, or other labor relations matters.”
 Pepsi-Cola Products, Inc. v. Sec. of Labor (1999)

Company: Pepsi-Cola Products, Inc.
Union/s: Pepsi-Cola Employees Organization-UOEF (Union for Supervisors) & Pepsi-Cola Labor Unity
(Union for R&F) & Pepsi-Cola Employees Union of the Philippines (Union for R&F)
39 | P a g e
Issue: Managers’ Union affiliation with a National Union or Federation with a R&F Union of the same
company; Confidential Employees
Doctrine: Thus, if the intent of the law is to avoid a situation where supervisors would merge with the
rank-and-file or where the supervisors' labor organization would represent conflicting interests, then a
local supervisors' union should not be allowed to affiliate with the national federation of union of rank-
and-file employees where that federation actively participates in union activity in the company. The
Court emphasizes that the limitation is not confined to a case of supervisors' wanting to join a rank-
and-file union. The prohibition extends to a supervisors' local union applying for membership in a
national federation the members of which include local unions of rank and file employees.
A confidential employee is one entrusted with confidence on delicate matters, or with the custody,
handling, or care and protection of the employer's property. While Art. 245 of the Labor Code singles
out managerial employee as ineligible to join, assist or form any labor organization, under the doctrine
of necessary implication, confidential employees are similarly disqualified. This doctrine states that
what is implied in a statute is as much a part thereof as that which is expressed.
 Tunay na Pagkakaisa ng Manggagawa sa Asia Brewery v. Asia Brewery, Inc. (2010)

Company: Asia Brewery, Inc.
Union/s: Bisig at Lakas ng mga Manggagawa sa Asia-Independent (BLMA-INDEPENDENT) & Tunay na
Pagkakaisa ng Manggagawa sa Asia (TPMA)
Issue: Definition of Confidential Employees
Doctrine: Jurisprudence has extended this prohibition to confidential employees or those who by
reason of their positions or nature of work are required to assist or act in a fiduciary manner to
managerial employees and hence, are likewise privy to sensitive and highly confidential records.
Confidential employees are thus excluded from the rank-and-file bargaining unit. The rationale for
their separate category and disqualification to join any labor organization is similar to the inhibition for
managerial employees because if allowed to be affiliated with a Union, the latter might not be assured
of their loyalty in view of evident conflict of interests and the Union can also become company-
denominated with the presence of managerial employees in the Union membership. Having access to
confidential information, confidential employees may also become the source of undue advantage.
Said employees may act as a spy or spies of either party to a collective bargaining agreement. Repeated
requirements listed in San Miguel Corp Supervisors and Exempt Employees Union case.
3. Worker/Member of Cooperative
 Central Negros Electric Cooperative, Inc. v. Sec of DOLE (1999)

Company: Central Negros Electric Cooperative, Inc. (CENECO)
Union/s: CENECO Union of Rational Employees (CURE)
Issue: Members of Cooperatives’ Right to Self Organization
Doctrine: Batangas I Electric Cooperative Labor Union vs. Romeo A. Young, states that "employees who
at the same time are members of an electric cooperative are not entitled to form or join unions for
purposes of collective bargaining agreement, for certainly an owner cannot bargain with himself or his
co-owners."
However, the right of the employees to self-organization is a compelling reason why their withdrawal
from the cooperative must be allowed. As pointed out by CURE, the resignation of the member-
employees is an expression of their preference for union membership over that of membership in the
cooperative. The avowed policy of the State to afford fall protection to labor and to promote the
40 | P a g e
primacy of free collective bargaining mandates that the employees' right to form and join unions for
purposes of collective bargaining be accorded the highest consideration.
4. Employees of International Organizations
 International Catholic Migration Commission v. Calleja (1990)

Companies: International Catholic Migration Commission (ICMC) & the International Rice Research
Institute, Inc. (IRRI)
Union/s: Trade Unions of the Philippines and Allied Services (TUPAS) & the Kapisanan ng Manggagawa
at TAC sa IRRI
Issue: Employees of International Organizations
Doctrine: Article II, Section 2 of the 1987 Constitution, which declares that the Philippines adopts the
generally accepted principles of international law as part of the law of the land.
The 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 tugger 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.
5. Non-employees
 Singer Sewing Machine Co. v. Drilon (1993)

Company: Singer Sewing Machine Company, Baguio City
Union/s: Singer Machine Collectors Union-Baguio (SIMACUB)
Issue: Non-employees (Independent Contractors/Agency Agreements)
Doctrine: If the union members are not employees, no right to organize for purposes of bargaining, nor
to be certified as such bargaining agent can ever be recognized. The present case mainly calls for the
application of the control test, which if not satisfied, would lead us to conclude that no employer-
employee relationship exists. The following elements are generally considered in the determination of
the employer-employee relationship; "(1) the selection and engagement of the employee; (2) the
payment of wages; (3) the power of dismissal; and (4) the power to control the employee's conduct —
although the latter is the most important element"
F. Party Protected
 Mactan Workers Union v. Aboitiz (1972)
Company: Cebu Shipyard and Engineering Works, Inc.
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Union/s: Mactan Workers Union & Associated Labor Union
Issue: Party Protected by the Exclusive Bargaining Agent
Doctrine: It is a well-settled doctrine that the benefits of a collective bargaining agreement extend to
the laborers and employees in the collective bargaining unit, including those who do not belong to the
chosen bargaining labor organization. Any other view would be a discrimination on which the law
frowns. The labor union that gets the majority vote as the exclusive bargaining representative does not
act for its members alone. It represents all the employees in such a bargaining unit. It is not to be
indulged in any attempt on its part to disregard the rights of non-members.
G. Non-Abridgment of Right and Sanctions for Violation of Right
Art. 258. Unfair labor practices of employers.

It shall be unlawful for an employer to commit any of the following unfair labor practice:
a. To interfere with, restrain or coerce employees in the exercise of their right to self-organization;
b. To require as a condition of employment that a person or an employee shall not join a labor
organization or shall withdraw from one to which he belongs;
c. To contract out services or functions being performed by union members when such will interfere
with, restrain or coerce employees in the exercise of their rights to self-organization;
d. To initiate, dominate, assist or otherwise interfere with the formation or administration of any labor
organization, including the giving of financial or other support to it or its organizers or supporters;
e. To discriminate in regard to wages, hours of work and other terms and conditions of employment in
order to encourage or discourage membership in any labor organization. Nothing in this Code or in any
other law shall stop the parties from requiring membership in a recognized collective bargaining agent
as a condition for employment, except those employees who are already members of another union at
the time of the signing of the collective bargaining agreement. Employees of an appropriate bargaining
unit who are not members of the recognized collective bargaining agent may be assessed a reasonable
fee equivalent to the dues and other fees paid by members of the recognized collective bargaining
agent, if such non-union members accept the benefits under the collective bargaining agreement:
Provided, that the individual authorization required under Article 242, paragraph (o) of this Code shall
not apply to the non-members of the recognized collective bargaining agent;
f. To dismiss, discharge or otherwise prejudice or discriminate against an employee for having given or
being about to give testimony under this Code;
g. To violate the duty to bargain collectively as prescribed by this Code;
h. To pay negotiation or attorney’s fees to the union or its officers or agents as part of the settlement
of any issue in collective bargaining or any other dispute; or
i. To violate a collective bargaining agreement.
The provisions of the preceding paragraph notwithstanding, only the officers and agents of
corporations, associations or partnerships who have actually participated in, authorized or ratified
unfair labor practices shall be held criminally liable. (As amended by Batas Pambansa Bilang 130,
August 21, 1981)
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Art. 259 Unfair labor practices of labor organizations.
It shall be unfair labor practice for a labor organization, its officers, agents or representatives:
a. To restrain or coerce employees in the exercise of their right to self-organization. However, a labor
organization shall have the right to prescribe its own rules with respect to the acquisition or retention
of membership;
b. To cause or attempt to cause an employer to discriminate against an employee, including

discrimination against an employee with respect to whom membership in such organization has been
denied or to terminate an employee on any ground other than the usual terms and conditions under
which membership or continuation of membership is made available to other members;
c. To violate the duty, or refuse to bargain collectively with the employer, provided it is the
representative of the employees;
d. To cause or attempt to cause an employer to pay or deliver or agree to pay or deliver any money or
other things of value, in the nature of an exaction, for services which are not performed or not to be
performed, including the demand for fee for union negotiations;
e. To ask for or accept negotiation or attorney’s fees from employers as part of the settlement of any
issue in collective bargaining or any other dispute; or
f. To violate a collective bargaining agreement.
The provisions of the preceding paragraph notwithstanding, only the officers, members of governing
boards, representatives or agents or members of labor associations or organizations who have actually
participated in, authorized or ratified unfair labor practices shall be held criminally liable. (As amended
by Batas Pambansa Bilang 130, August 21, 1981)
Art. 302 Penalties.

Except as otherwise provided in this Code, or unless the acts complained of hinge on a question of
interpretation or implementation of ambiguous provisions of an existing collective bargaining
agreement, any violation of the provisions of this Code declared to be unlawful or penal in nature shall
be punished with a fine of not less than One Thousand Pesos (P1,000.00) nor more than Ten Thousand
Pesos (P10,000.00) or imprisonment of not less than three months nor more than three years, or both
such fine and imprisonment at the discretion of the court. In addition to such penalty, any alien found
guilty shall be summarily deported upon completion of service of sentence.
Any provision of law to the contrary notwithstanding, any criminal offense punished in this Code, shall
be under the concurrent jurisdiction of the Municipal or City Courts and the Courts of First Instance.
(As amended by Section 3, Batas Pambansa Bilang 70)
Art. 303 Who are liable when committed by other than natural person.
If the offense is committed by a corporation, trust, firm, partnership, association or any other entity,
the penalty shall be imposed upon the guilty officer or officers of such corporation, trust, firm,
partnership, association or entity
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Art. 286 Penalties.
a. Any person violating any of the provisions of Article 264 of this Code shall be punished by a fine of
not less than one thousand pesos (P1,000.00) nor more than ten thousand pesos (P10,000.00) and/or
imprisonment for not less than three months nor more than three (3) years, or both such fine and
imprisonment, at the discretion of the court. Prosecution under this provision shall preclude
prosecution for the same act under the Revised Penal Code, and vice versa.
b. Upon the recommendation of the Minister of Labor and Employment and the Minister of National
Defense, foreigners who violate the provisions of this Title shall be subject to immediate and summary
deportation by the Commission on Immigration and Deportation and shall be permanently barred from
re-entering the country without the special permission of the President of the Philippines. (As
amended by Section 16, Batas Pambansa Bilang 130 and Section 7, Batas Pambansa Bilang 227)
Art. 278. Prohibited activities.

a. No labor organization or employer shall declare a strike or lockout without first having bargained
collectively in accordance with Title VII of this Book or without first having filed the notice required in
the preceding Article or without the necessary strike or lockout vote first having been obtained and
reported to the Ministry.
No strike or lockout shall be declared after assumption of jurisdiction by the President or the Minister
or after certification or submission of the dispute to compulsory or voluntary arbitration or during the
pendency of cases involving the same grounds for the strike or lockout.
Any worker whose employment has been terminated as a consequence of any unlawful lockout shall
be entitled to reinstatement with full backwages. Any union officer who knowingly participates in an
illegal strike and any worker or union officer who knowingly participates in the commission of illegal
acts during a strike may be declared to have lost his employment status: Provided, That mere
participation of a worker in a lawful strike shall not constitute sufficient ground for termination of his
employment, even if a replacement had been hired by the employer during such lawful strike.
b. No person shall obstruct, impede, or interfere with, by force, violence, coercion, threats or
intimidation, any peaceful picketing by employees during any labor controversy or in the exercise of
the right to self-organization or collective bargaining, or shall aid or abet such obstruction or
interference.
c. No employer shall use or employ any strike-breaker, nor shall any person be employed as a strike-
breaker.
d. No public official or employee, including officers and personnel of the New Armed Forces of the
Philippines or the Integrated National Police, or armed person, shall bring in, introduce or escort in any
manner, any individual who seeks to replace strikers in entering or leaving the premises of a strike
area, or work in place of the strikers. The police force shall keep out of the picket lines unless actual
violence or other criminal acts occur therein: Provided, That nothing herein shall be interpreted to
prevent any public officer from taking any measure necessary to maintain peace and order, protect life
44 | P a g e
and property, and/or enforce the law and legal order. (As amended by Executive Order No. 111,
December 24, 1986)
e. No person engaged in picketing shall commit any act of violence, coercion or intimidation or
obstruct the free ingress to or egress from the employer’s premises for lawful purposes, or obstruct
public thoroughfares. (As amended by Batas Pambansa Bilang 227, June 1, 1982)
Book V, Rule XXII, Sec. 15

Section 15. Criminal prosecution. - The regular courts shall have jurisdiction over any criminal
actiounder Article 272 of the Labor Code.
IV. LABOR ORGANIZATION

A. Policy
Art. 218 A (b) (c) (d) (g)

b. To promote free trade unionism as an instrument for the enhancement of democracy and the
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;
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. Definition
Art. 219 (g)

of employment.
45 | P a g e
Book V, Rule I, Sec. 1 (cc)
(cc) "Labor Organization" refers to any union or association of employees in the private sector which
exists in whole or in part for the purpose of collective bargaining, mutual aid, interest, cooperation,
protection, or other lawful purposes.
C. Categories of Labor Organizations and Unions
Art. 219 (g) (h) (i) (j);

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.
Book V, Rule I, Sec. 1(cc), (ee), (ff), (zz), (ccc), (t), (j);
(cc) "Labor Organization" refers to any union or association of employees in the private sector which
exists in whole or in part for the purpose of collective bargaining, mutual aid, interest, cooperation,
protection, or other lawful purposes.
(ee) "Legitimate Labor Organization" refers to any labor organization in the private sector registered
or reported with the Department in accordan ce with Rules III and IV of these Rules.
(ff) "Legitimate Workers' Association" refers to an association of workers organized for mutual aid and
protection of its members or for any legitimate pur pose other than collective bargaining registered
with the Department in accordance with Rule III, Sections 2-C and 2-D of these Rules.
(zz) "Union" refers to any labor organization in t he private sector organized for collective bargaining
and for other legitimate purposes.
(ccc) "Workers' Association" refers to an associat ion of workers organized for the mutual aid and
protection of its members or for any legitimate purpose other than collective bargaining.
(t) "Exclusive Bargaining Representative" refers to a legitimate labor union duly recognized or certified
as the sole and exclusive bargaining representative or agent of all the employees in a bargaining unit.
(j) "Collective Bargaining Agreement" or "CBA" refers to the contract between a legitimate labor union
and the employer concerning wages, hours of work, a nd all other terms and conditions of employment
in a bargaining unit.
D.O. 40-B-03
Sec. 2. Sec. 1(i), Rule I (of Book 5 of the implementing rules) is hereby amended as follows:
46 | P a g e
“(i) Chartered Local” refers to a labor organization in the private sector operating at the
enterprise level that acquired legal personality through registration with the Regional Office with Rule
III, Sec. 2-E of these Rules.
Sec. 3. Sec. 2(E), Rule II is hereby amended as follows:

“A duly registered federation or national union may directly create a chartered local by
submitting to the Regional Office 2 copies of the following:
(a) A charter certificate issued by the federation or national union indicating the creation or
establishment of the local/chapter;
(b) The names of the local/chapter’s officers, their addresses and the principal office of the
local/chapter; and
(c) The local/chapter’s constitution and by-laws, provided that where the local/chapter’s
constitution and by-laws is the same as that of the federation or national union, this fact shall be
indicated accorsingly
All the foregoing supporting requirements shall be certified under oath by the Secretary or the
Treasurer of the local/chapter and attested by its President.”
Sec. 4. All chartered locals duly-registered prior to the effecticity of this amendatory issuance shall
maintain their legitimate status, with all rights and obligations appurtenant thereto.
1. Labor Union
Art. 219 (g) (supra on page 45)
Book V, Rule I, Sec. 1 (cc), (zz); (supra on page 46)
a) Legitimate Organization
Art. 219 (h); (supra on page 46)
Book V, Rule I, Sec. 1 (ee); (supra on page 46)
b) Company Union
Art. 219 (i); (supra on page 46)
2. Workers Association
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Book V, Rule I, Sec. 1 (ccc); (supra on page 46)
a) Legitimate Workers’ Association
Book V, Rule I, Sec. 1 (ff); (supra on page 46)
3. National Union or Federation
Book V, Rule 1, Sec. 1 (kk)

(kk) "National Union" or "Federation" refers to a group of legitimate labor unions in a private
establishment organized for collective bargaining or for dealing with employers concerning terms and
conditions of employment for their member unions or for participating in the formulation of social and
employment policies, standards and programs, registered with the Bureau in accordance with Rule III,
Section 2-B of these Rules.
4. Trade Union Center
Art. 239 Requirements of registration.

Any applicant labor organization, association or group of unions or workers 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. 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; (As amended by Executive Order No. 111, December 24,
1986)
d. If the applicant union has been in existence for one or more years, copies of its annual financial
reports; and
e. Four (4) 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. (As amended by Batas Pambansa Bilang
130, August 21, 1981)
 San Miguel Employees Union – PTGWO v. San Miguel Packaging Products Employees Union – PDMP
(2007)
Company: San Miguel Corporation (SMC)
48 | P a g e
Union/s: San Miguel Corporation Employees Union – Philippine Transport and General Workers
Organization (SMCEU-PTGWO) & San Miguel Packaging Products Employees Union–Pambansang Diwa
Ng Manggagawang Pilipino (SMPPEU–PDMP)
Issue: Trade Union Center’s authority to create a local Chapter
Doctrine: A duly registered federation or national union may directly create a local or chapter by
submitting to the DOLE Regional Office or to the BLR two copies of the following:
(b) The names of the local/chapter's officers, their addresses, and the principal office of the
local/chapter; and
(c) The local/chapter's constitution and by-laws; Provided, That where the local/chapter's constitution
and by-laws is the same as that of the federation or national union, this fact shall be indicated
accordingly.
Treasurer of the local/chapter and attested to by its President.
A trade union center is any group of registered national unions or federations organized for the mutual
aid and protection of its members; for assisting such members in collective bargaining; or for
participating in the formulation of social and employment policies, standards, and programs, and is
duly registered with the DOLE in accordance with Rule III, Section 2 of the Implementing Rules.
Article 234 now includes the term trade union center, but interestingly, the provision indicating the
procedure for chartering or creating a local or chapter, namely Article 234- A, still makes no mention of
a "trade union center." This Court deems it proper to apply the Latin maxim expressio unius est
exclusion alterius.
D. Union Function and Rationale

 Guijarno v. CIR (1973)
Company: Central Santos Lopez Co., Inc.
Union/s: United Sugar Workers Union-ILO
Employees: Guijarno, et. al.
Issue: Retroactivity of a Closed-Shop Agreement
Doctrine: In Freeman Shirt Manufacturing Co., Inc. v. Court of Industrial Relations: "The closed-shop
agreement authorized under sec. 4, subsec. a(4) of the Industrial Peace Act above quoted should
however, apply to persons to be hired or to employees who are not yet members of any labor
organization. It is inapplicable to those already in the service who are members of another union. To
hold otherwise, i. e., that the employees in a company who are members of a minority union may be
compelled to disaffiliate from their union and join the majority or contracting union, would render
nugatory the right of all employees to self-organization and to form, join or assist labor organizations
of their own choosing, a right guaranteed by the Industrial Peace Act (sec. 3, Rep. Act No. 875) as well
as by the Constitution (Art. III, sec. 1[6])."
It is then the individual employee, as a separate, finite human being, with his problems and his needs,
who must be attended to. He is the beneficiary of the concern thus made manifest by the fundamental
law. Where does that leave a labor union, it may be asked. Correctly understood, it is nothing but the
means of assuring that such fundamental objectives would be achieved. It is the instrumentality
through which an individual laborer who is helpless as against a powerful employer may, through
concerted effort and activity, achieve the goal of economic well-being.
49 | P a g e
E. Regulation of Labor Organization
1. Union Registration: Procedure
a) Requirements and Rationale
Art. 240 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 by-laws: 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.
Art. 241 Action on application.

The Bureau shall act on all applications for registration within thirty (30) days from filing.
All requisite documents and papers shall be certified under oath by the secretary or the treasurer of
the organization, as the case may be, and attested to by its president.
Art. 243. Additional requirements for federations or national unions.

Subject to Article 238, if the applicant for registration is a federation or a national union, it shall, in
addition to the requirements of the preceding Articles, submit the following:
a. Proof of the affiliation of at least ten (10) locals or chapters, each of which must be a duly recognized
collective bargaining agent in the establishment or industry in which it operates, supporting the
registration of such applicant federation or national union; and
b. The names and addresses of the companies where the locals or chapters operate and the list of all
he members in each company involved.
Book V, Rule III, Sec. 2

Section 2. Requirements for application . - A. The application for registration of an independent
labunion shall be accompanied by the following documents:
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1) the name of the applicant labor union, its principal address, the name of its officers and their
respective addresses, approximate number of empl oyees in the bargaining unit where it seeks to
operate, with a statement that it is not reported as a chartered local of any federation or national
unio
2) the minutes of the organizational meeting(s) an d the list of employees who participated in the said
meeting(s);
3) the name of all its members comprising at leas t 20% of the employees in the bargaining unit;
4) the annual financial reports if the applicant has been in existence for one or more years, unless it
not collected any amount from the members, in which case a statement to this effect shall be includein
the application;
5) the applicant's constitution and by-laws, minutes of its adoption or ratification, and the list of the
members who participated in it. The list of ratifying members shall be dispensed with where the
constitution and by-laws was ratified or adopted during the organizational meeting. In such a case, the
factual circumstances of the ratification shall be recorded in the minutes of the organizational
meeting(s).
B. The application for registration of federations and national unions shall be accompanied by the
following documents:
1) a statement indicating the name of the applicant labor union, its principal address, the name of its
meeting(s);
3) the annual financial reports if the applicant union has been in existence for one or more years,
unless it has not collected any amount from the members, in which case a statement to this effect shall
be included in the application;
4) the applicant union's constitution and by-laws, minute s of its adoption or ratification, and the list of
the members who participated in it. The list of ratifying members shall be di spensed with where the
constitution and by-laws was ratified or adopted durin g the organizational meeting(s). In such a case,
the factual circumstances of the ratification shall be recorded in the minutes of the organizational
meeting(s);
5) the resolution of affiliation of at least ten (10) legitimate labor organizations, whether independent
unions or chartered locals, each of which must be a duly certified or recognized bargaining agent in the
establishment where it seeks to operate; and
6) the name and addresses of the companies where the affiliates operate and the list of all the
members in each company involved.
Labor organizations operating within an identified industry may also apply for registration as a
federation or national union within the specified industry by submitting to the Bureau the same set of
documents.
C. The application for registration of a workers' association shall be accompanied by the following
documents:
1) the name of the applicant association, its principal address, the name of its officers and their
respective addresses;
2) the minutes of the organizational meeting(s) and the list of members who participated therein;
3) the financial reports of the appl icant association if it has been in existence for one or more years,
51 | P a g e
4) the applicant's constitution and by-laws to which must be attached the names of ratifying
members, the minutes of adoption or ratification of the constitution and by-laws and the date when
ratification was made, unless ratification was done in the organizational meeting(s), in which case such
fact shall be reflected in the minutes of the organizational meeting(s).
D. Application for registration of a workers' association operating in more than one region shall be
accompanied, in addition to the requirements in the preceding subsection, by a resolution of
membership of each member association, duly approved by its board of directors.
E. The report of creation of a chartered local shall be accompanied by a charter certificate issued by
the federation or national union indicating the creat ion or establishment of the chartered local.
Book V, Rule IV, Sec. 2 (E) as amended by DO No. 40-B-03

A duly registered federation or national union may directly create a chartered local by submitting to
the Regional Office 2 copies of the following:
(d) A charter certificate issued by the federation or national union indicating the creation or
(e) The names of the local/chapter’s officers, their addresses and the principal office of the
local/chapter; and
(f) The local/chapter’s constitution and by-laws, provided that where the local/chapter’s
constitution and by-laws is the same as that of the federation or national union, this fact shall be
indicated accorsingly
Treasurer of the local/chapter and attested by its President.
 Mariwasa Siam Ceramics, Inc. v. Secretary of DOLE (2009)

Company: Mariwasa Siam Ceramics, Inc.
Union/s: Samahan Ng Mga Manggagawa Sa Mariwasa Siam Ceramics, Inc. (SMMSC-Independent)
Issue: Effect of Withdrawal of Union Membership
Doctrine: It would be otherwise if the withdrawal was made after the filing of the petition for it would
then be presumed that the withdrawal was not free and voluntary. The presumption would arise that
the withdrawal was procured through duress, coercion or for valuable consideration. In other words,
the distinction must be that withdrawals made before the filing of the petition are presumed voluntary
unless there is convincing proof to the contrary, whereas withdrawals made after the filing of the
petition are deemed involuntary.
While it is true that the withdrawal of support may be considered as a resignation from the union, the
fact remains that at the time of the union’s application for registration, the affiants were members of
respondent and they comprised more than the required 20% membership for purposes of registration
as a labor union. Article 234 of the Labor Code merely requires a 20% minimum membership during
the application for union registration. It does not mandate that a union must maintain the 20%
minimum membership requirement all throughout its existence.
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b) Action on Application; Denial of Registration
Art. 242. Denial of registration; appeal.

The decision of the Labor Relations Division in the regional office denying registration may be appealed
by the applicant union to the Bureau within ten (10) days from receipt of notice thereof.
Book V, Rule IV, Secs. 4-7

Section 4. Action on the application/notice. - The Regional Office or the Bureau, as the case may be,
shall act on all applications for registration or notice of change of name, affiliation, merger and
consolidation within ten (10) days from receipt either by: (a) approving the application and issuing the
certificate of registration/acknowledging the notice/report; or (b) denying the application/notice for
failure of the applicant to comply with the requirements for registration/notice.
Section 5. Denial of Application/Return of Notice. - Where the documents supporting the application
for registration/notice of change of name, affiliation, merger and consolidation are incomplete or do
not contain the required certification and attestation, the Regional Office or the Bureau shall, within
five (5) days from receipt of the application/notice, notify the applicant/labor organization concerned
in writing of the necessary requirements and complete the same within thirty (30) days from receipt of
notice.
Where the applicant/labor organization concerned fails to complete the requirements within the time
prescribed, the application for registration shall be denied, or the notice of change of name, affiliation,
merger and consolidation returned, without prejudice to filing a new application or notice.
Section 6. Form of Denial of Application/Return of Notice; Appeal. - The notice of the Regional
Office or the Bureau denying the application for registration/returning the notice of change of name,
affiliation, merger or consolidation s hall be in writing stating in clear terms the reasons for the denial
or return. The denial may be appealed to the Bureau if denial is made by the Regional Office or to the
Secretary if denial is made by the Bureau, within ten (10) days from receipt of such notice, on the
ground of grave abuse of discretion or violation of these Rules.
Section 7. Procedure on appeal. - The memorandum of appeal shall be filed with the Regional Office or
the Bureau that issued the denial/return of notice. The memorandum of appeal together with the
complete records of the ap plication for registration/no tice of change of name, affiliation, merger or
consolidation, shall be transmitted by the Regional Office to the Bureau or by the Bureau to the Office
of the Secretary, within twenty-four (24) hours from receipt of the memorandum of appeal.
The Bureau or the Office of the Secretary shall de cide the appeal within twenty (20) days from receipt
of the records of the case.
 Progressive Development Corp-Pizza Hut v Laguesma (1992)

Company: Progressive Development Corporation
Union: KILUSAN-TUCP and Progressive Development Employee’s Union (local)
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Issue: When does a branch/local become a legitimate labor organization capable of petitioning for a
certification election?
Doctrine: ordinarily, a labor org acquires legitimacy only upon registration with the BLR, pursuant to
requirements laid down in the Labor Code. But when an unregistered union becomes a branch, local
or chapter of a federation, some of the requirements are no longer required.
A local/chapter becomes a legitimate labor organization only upon the submission of (1) a charter
certificate, within 30 days from its issuance by the federation, and (2) the constitution and by-laws, a
statement on the set of officers, and the books of accounts, all certified under oath by the secretary
or treasurer, and attested to by the president. Failure of the local to certify the required documents
under oath is fatal to its acquisition of legitimate status.
c) Effect of Registration; Non-Registration; Acquisition of Legal Personality
Book V, Rule IV, Sec. 8. Effect of Registration.

The labor union or workers’ association shall be deemed registered and vested with legal personality
on the date of issuance of its certificate of registration or certificate of creation of chartered local.
Such legal personality may be questioned only through an independent petition for cancellation of
union registration in accordance with Rule XIV of these Rules, and not by way of collateral attack in
petition for certification election proceedings under Rule VIII.
 SMC (Mandaue) v Mandaue Packing Products Plant (2005)

Company: San Miguel Corporation
Union: MPPP-SMPP-SMAMRFU-FFW
Issue: When does a local/chapter attain legal personality? Does its failure to submit its by-laws render
its legitimacy void?
Doctrine: The old rule, and the one that governs in this case, is that the local/chapter acquires legal
personality from the date of the filing of the complete documentary requirements, and not from the
issuance of a certification to such effect by the Regional Office or Bureau. (As of the promulgation of
Dept Order No 40, the chartered local acquires legal personality upon the issuance of the charter
certificate by the duly registered federation or national union.)
While the union did not strictly follow the procedural rules for acquisition of legal personality, the
court acknowledges that labor laws are construed liberally in favor of labor, especially if doing so
affirms the constitutionally guaranteed right to self-organization. The failure of the federation to
submit the by-laws containing the rules of its local should have been fatal, but since the same rules are
reproduced in the constitution, it is feasible to overlook this requirement.
 Abaria et al. v NLRC (2011)

Company: Metro Cebu Community Hospital
Union: NAMA-MCCH-NFL, and NFL
Issue: WON the union NAMA-MCCH-NFL had the capacity to bargain collectively?
Doctrine: The records of the NCMB and DOLE confirmed that NAMA-MCCH-NFL had not registered as a
legitimate labor organization, having submitted only its charter certificate as an affiliate of local
chapter of NFL. Not being a legitimate labor organization, NAMA-MCCH-NFL is not entitled to those
rights granted to a legitimate labor organization, specifically: (1) to act as the representative of its
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members for the purpose of collective bargaining; (2) to be certified as the exclusive representative of
all the employees in an appropriate collective bargaining unit for purposes of collective bargaining.
d) Rights of Legitimate Labor Organization
Art. 250. Rights of a Legitimate Labor Organization.

A legitimate labor organization shall have the right:
(a) To act as the representative of its members for the purpose of collective bargaining;
(b) To be certified as the exclusive representative of all the employees in an appropriate bargaining
unit for purposes of collective bargaining;
(c) To be furnished by the employer, upon written request, with its annual audited financial
statements, including the balance sheet and the profit and loss statement, within thirty (30) calendar
days from the date of receipt of the request, after the union has been duly recognized by the employer
or certified as the sole and exclusive bargaining representative of the employees in the bargaining unit,
or within sixty (60) calendar days before the expiration of the existing collective bargaining agreement,
or during the collective bargaining negotiation;
(d) To own property, real or personal, for the use and benefit of the labor organization and its
members;
(e) To sue and be sued in its registered name; and
(f) To undertake all other activities designed to benefit the organization and its members, including
cooperative, housing, welfare and other projects not contrary to law.
Notwithstanding any provision of a general or special law to the contrary, the income and the
properties of legitimate labor organizations, including grants, endowments, gifts, donations and
contributions they may receive from fraternal and similar organizations, local or foreign, which are
actually, directly and exclusively used for their lawful purposes, shall be free from taxes, duties and
other assessments. The exemptions provided herein may be withdrawn only by a special law expressly
repealing this provision.
Art. 251. 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.
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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.
 San Miguel Foods Inc. v Laguesma (1996)

Company: San Miguel Foods Inc.
Union: Ilaw at Buklod ng Manggagawa (IBM)
Issue: WON IBM is a legitimate labor organization?
Doctrine: YES. Ordinarily, a labor organization attains the status of legitimacy only upon the issuance in
its name of a Certificate of Registration by the BLR. However, when an unregistered union becomes a
branch, local or chapter of a federation, some of the requirements for registration are no longer
required.
Pursuant to the holding in Progressive Development Corp. v SOLE, the requirements are (1) charter
certificate, and (2) constitution and by-laws, statement of set of officers, books of account, all certified
and attested to. The satisfaction of these requirements by the local/chapter shall vest upon it the
status of legitimacy with all its concomitant statutory privileges, one of which is the right to be
certified as the SEBA of all employees within an appropriate bargaining unit.
 Acedera v International Container Services (2003)

Company: International Container Terminal Services Inc.
Union: APCWU-ICTSI
Issue: WON a legitimate labor organization had the right to represent its members in a case?
Doctrine: YES. A labor union is one such party authorized to represent its members under Article
242(a) of the LC which provides that a union may act as the representative of its members for the
purpose of collective bargaining. This includes the power to represent its members for the purpose of
enforcing the provisions of the CBA.
Exception: a person whose interests are already represented will not be permitted to do the same,
unless there is a suggestion of fraud or collusion or that the representative will not act in good faith for
the protection of all interests. For a member of the class to be permitted to intervene in a
representative action, fraud or collusion or lack of good faith must be proven.
 Republic v Kawashima Textile (2008)

Company: Kawashima Textiles
Union: Kawashima Free Workers’ Union
Issue: WON the mix of supervisory and rank & file employees could be grounds for dismissal of a
petition for certification election?
Doctrine: Current law dictates that the mix of supervisors and rank & file in a single union shall not be
a ground for the cancellation of a union’s registration. Neither shall a petition for the cancellation of
said registration affect any standing petition for CE, nor will it deny the unions the right to make such a
petition.
However, the law that provides for these amendments to the Labor Code (RA948) was not yet in force
when this dispute arose. Hence, the applicable law for this case states that the appropriate
bargaining unit to be represented in the certification election shall not include supervisory
employees, and/or security guards.
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 Baptista, et al. v Villanueva, et al. (2013)
Company: Radio Phils. Network
Union: Radio Phils. Network Employees Union (RPNEU)
Issue: WON the petitioners’ acts were violative of the CBL and thus warranted their expulsion from the
union?
Doctrine: YES. It is well-settled that workers’ and employers’ organizations shall have the
right to draw up their constitutions and rules to elect their representatives in full freedom,
to organize their administration and activities and to formulate their programs. RPNEU’s
Constitution and By-Laws expressly mandate that before a party is allowed to seek the
intervention of the court, it is a pre-condition that he should have availed of all the internal
remedies within the organization. Petitioners violated the provisions of the union’s Constitution
and By-Laws when they filed petitions for impeachment before the DOLE without first exhausting
all internal remedies available within their organization. This act is a ground for expulsion from
union membership, expressly sanctioned by the union’s Constitution and By-Laws.
2. Cancellation of Union Certificate of Registration
Art. 244. Cancellation of Registration.

The certificate 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 (Now Art. 246) hereof.
Art. 245. 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.
Art. 246. 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.
Art. 247. 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.
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Art. 249(j). Rights and Conditions of Membership in a Labor Organization.
(j) Every income or revenue of the organization shall be evidenced by a record showing its source, and
every expenditure of its funds shall be evidenced by a receipt from the person to whom the payment is
made, which shall state the date, place and purpose of such payment. Such record or receipt shall form
part of the financial records of the organization.
Any action involving the funds of the organization shall prescribe after three (3) years from the date of
submission of the annual financial report to the Department of Labor and Employment or from the
date the same should have been submitted as required by law, whichever comes earlier; Provided,
That this provision shall apply only to a legitimate labor organization which has submitted the financial
report requirements under this Code; Provided, further, that failure of any labor organization to
comply with the periodic financial reports required by law and such rules and regulations promulgated
thereunder six (6) months after the effectivity of this Act shall automatically result in the cancellation
of union registration of such labor organization;
Art. 250 (par. 2). (supra on page 55)
Book V, Rule 1, Sec. 1(g). Definition of Terms.

(g) “Cancellation Proceedings” refer to the legal process leading to the revocation of the legitimate
status of a union of workers’ association.
Book V, Rule XIV, Sec. 1 Cancellation of Registration; Where to File.

Subject to the requirements of notice and due process, the registration of any legitimate independent
labor union, local/chapter and workers’ association may be cancelled by the Regional Director upon
the filing of a petition for cancellation of union registration, or application by the organization itself for
voluntary dissolution.
The petition for cancellation or application for voluntary dissolution shall be filed in the regional office
which issued its certificate of registration or creation.
In the case of federations, national or industry unions and trade union centers, the Bureau Director
may cancel the registration upon the filing of a petition for cancellation or application for voluntary
dissolution in the Bureau of Labor Relations.
Book V, Rule XIV, Sec. 2 Who May File.

Any party-in-interest may commence a petition for cancellation of registration, except in actions
involving violations of Article 241, which can only be commenced by members of the labor
organization concerned.
 The Heritage Manila v NUWHRAIN-HHMSC (2009)

Company: Heritage Hotel Manila
Union: PIGLAS-HERITAGE
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Issue: WON the union committed misrepresentation warranting the cancellation of their union’s
registration certificate?
Doctrine: NO. The charge that a labor organization committed fraud and misrepresentation in
securing its registration is a serious charge and deserves close scrutiny. It is serious because once
such charge is proved, the labor union acquires none of the rights accorded to registered
organizations. Consequently, charges of this nature should be clearly established by evidence
and the surrounding circumstances. In this case, the discrepancies were due to the number of
attendees to the meeting having grown during the 12 hours that had passed since the roll call. The
Labor Code and its implementing rules do not require that the number of members appearing on
the documents in question should completely dovetail. For as long as the documents and signatures
are shown to be genuine and the constitution and by-laws democratically ratified, the union has
complied with registration requirements.
3. Reportorial Requirements
F. International Activities of Union: Prohibition and Regulation
Art. 283 (supra on page 36)
Art. 284 (supra on page 36)
Art. 285. Applicability to farm tenants and rural workers.

The provisions of this Title pertaining to foreign organizations and activities shall be deemed applicable
likewise to all organizations of farm tenants, rural workers, and the like; Provided, That in appropriate
cases, the Secretary of Agrarian Reform shall exercise the powers and responsibilities vested by this
Title in the Secretary of Labor.
G. Union-Member Relations
Art. 3. Declaration of basic policy.

The State shall afford protection to labor, promote full employment, ensure equal work opportunities
regardless of sex, race or creed and regulate the relations between workers and employers. The State
shall assure the rights of workers to self-organization, collective bargaining, security of tenure, and just
and humane conditions of work.
Art. 249. Rights and conditions of membership in a labor organization.

The following are the rights and conditions of membership in a labor organization:
(a) No arbitrary or excessive initiation fees shall be required of the members of a legitimate labor
organization nor shall arbitrary, excessive or oppressive fine and forfeiture be imposed;
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(b) The members shall be entitled to full and detailed reports from their officers and representatives of
all financial transactions as provided for in the constitution and by-laws of the organization;
(c) The members shall directly elect their officers, including those of the national union or federation to
which they or their union is affiliated, by secret ballot at intervals of five (5) years. No qualification
requirements for candidacy to any position shall be imposed other than membership in good standing
in subject labor organization. The secretary or any other responsible union officer shall furnish the
Secretary of Labor and Employment with a list of the newly-elected officers, together with the
appointive officers or agents who are entrusted with the handling of funds, within thirty (30) calendar
days after the election of officers or from the occurrence of any change in the list of officers of the
labor organization;
(d) The members shall determine by secret ballot, after due deliberation, any question of major policy
affecting the entire membership of the organization, unless the nature of the organization or force
majeure renders such secret ballot impractical, in which case, the board of directors of the
organization may make the decision in behalf of the general membership;
(e) No labor organization shall knowingly admit as members or continue in membership any individual
who belongs to a subversive organization or who is engaged directly or indirectly in any subversive
activity;
(f) No person who has been convicted of a crime involving moral turpitude shall be eligible for election
as a union officer or for appointment to any position in the union;
(g) No officer, agent or member of a labor organization shall collect any fees, dues, or other
contributions in its behalf or make any disbursement of its money or funds unless he is duly authorized
pursuant to its constitution and by-laws;
(h) Every payment of fees, dues or other contributions by a member shall be evidenced by a receipt
signed by the officer or agent making the collection and entered into the record of the organization to
be kept and maintained for the purpose;
(i) The funds of the organization shall not be applied for any purpose or object other than those
expressly provided by its constitution and by-laws or those expressly authorized by written resolution
adopted by the majority of the members at a general meeting duly called for the purpose;
(j) Every income or revenue of the organization shall be evidenced by a record showing its source, and
every expenditure of its funds shall be evidenced by a receipt from the person to whom the payment is
made, which shall state the date, place and purpose of such payment. Such record or receipt shall form
part of the financial records of the organization.
Any action involving the funds of the organization shall prescribe after three (3) years from the date of
submission of the annual financial report to the Department of Labor and Employment or from the
date the same should have been submitted as required by law, whichever comes earlier: Provided,
That this provision shall apply only to a legitimate labor organization which has submitted the financial
report requirements under this Code: Provided, further, that failure of any labor organization to
comply with the periodic financial reports required by law and such rules and regulations promulgated
thereunder six (6) months after the effectivity of this Act shall automatically result in the cancellation
of union registration of such labor organization;
(k) The officers of any labor organization shall not be paid any compensation other than the salaries
and expenses due to their positions as specifically provided for in its constitution and by-laws, or in a
written resolution duly authorized by a majority of all the members at a general membership meeting
duly called for the purpose. The minutes of the meeting and the list of participants and ballots cast
shall be subject to inspection by the Secretary of Labor or his duly authorized representatives. Any
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irregularities in the approval of the resolutions shall be a ground for impeachment or expulsion from
the organization;
(l) The treasurer of any labor organization and every officer thereof who is responsible for the account
of such organization or for the collection, management, disbursement, custody or control of the funds,
moneys and other properties of the organization, shall render to the organization and to its members a
true and correct account of all moneys received and paid by him since he assumed office or since the
last day on which he rendered such account, and of all bonds, securities and other properties of the
organization entrusted to his custody or under his control. The rendering of such account shall be
made:
(1) At least once a year within thirty (30) days after the close of its fiscal year;
(2) At such other times as may be required by a resolution of the majority of the members of the
organization; and
(3) Upon vacating his office.
The account shall be duly audited and verified by affidavit and a copy thereof shall be furnished the
Secretary of Labor.
(m) The books of accounts and other records of the financial activities of any labor organization shall
be open to inspection by any officer or member thereof during office hours;
(n) No special assessment or other extraordinary fees may be levied upon the members of a labor
organization unless authorized by a written resolution of a majority of all the members in a general
membership meeting duly called for the purpose. The secretary of the organization shall record the
minutes of the meeting including the list of all members present, the votes cast, the purpose of the
special assessment or fees and the recipient of such assessment or fees. The record shall be attested to
by the president.
(o) Other than for mandatory activities under the Code, no special assessments, attorney’s fees,
negotiation fees or any other extraordinary fees may be checked off from any amount due to an
employee without an individual written authorization duly signed by the employee. The authorization
should specifically state the amount, purpose and beneficiary of the deduction; and
(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.
Art. 259(a). Unfair labor practices of labor organizations.

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(a) To restrain or coerce employees in the exercise of their right to self-organization. However, a labor
organization shall have the right to prescribe its own rules with respect to the acquisition or retention
of membership;
1. Nature of Relationship
 Heirs of Cruz v CIR (1969)

Company: Santiago Rice Mill
Union: Santiago Labor Union
Issue: What is the nature of the relationship between the union and its members?
Doctrine: The union has been evolved as an organization of collective strength for the protection of
labor against the unjust exactions of capital, but equally important is the requirement of fair
dealing between the union and its members, which is fiduciary in nature, and arises out of two
factors: “one is the degree of dependence of the individual employee on the union organization;
the other, a corollary of the first, is the comprehensive power vested in the union with respect to
the individual.”
Authority of the union to waive or quitclaim all or part of the judgment award in favor of the
individual workers cannot be lightly presumed but must be expressly granted (special power of
attorney), and the employer, as judgment debtor, must deal in all good faith with the union as the
agent of the individual workers.
2. Issues and Concerns
a) Admission and Discipline of Members
Art. 259 (a). (supra on page 61)
Art. 249 (a) (e). (supra on page 59)
Art. 291(c). Miscellaneous provisions.

(c) Any employee, whether employed for a definite period or not, shall, beginning on his first day of
service, be considered an employee for purposes of membership in any labor union.
 Bugay v Kapisanan ng Manggagawa sa Manila Railroad (1962)

Company: Manila Railroad
Union: Kapisanan ng Manggagawa sa Manila Railroad
Issue: WON loss of membership in the union warrants a claim for damages?
Doctrine: YES. While the decisions of the CIR and the SC do not contain any statement as to the charges
being fabricated or in bad faith, the fact remains that the finding of both the CIR and the SC show that
the expulsion was illegal because of the irregularities committed in the investigation. In effect, it was
found that not only has Bugay not been given an opportunity to defend himself, but his expulsion was
not submitted to the different chapters of the union as required by the constitution and by-laws.
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 Salunga v CIR (1967)
Company: San Miguel Brewery Inc.
Union: NABAILUP-PAFLY
Issue: WON an employee can be validly terminated pursuant to a closed-shop agreement?
Doctrine: Labor Unions are not entitled to arbitrarily exclude qualified applicants for membership,
and a closed-shop provision would not justify the employer in discharging, or a union insisting in the
discharge of an employee whom the union refuses to admit to membership without any reasonable
ground. Thus, while generally the State may not compel the union to admit an individual as a member,
this scenario is an exception.
 Villar v Inciong (1983)

Company: Amigo Manufacturing Inc.
Union: Amigo Employees Union-PAFLU
Issue: What is the extent of authority the PAFLU may have over the errant members of its subordinate
union?
Doctrine: When members of the subordinate sow the seeds of dissension within the union, they
thereby forfeit their rights to remain members of the union they seek to destroy. Prudence and
equity compel the use of such corrective and remedial measures, in keeping with its laws and
regulations, for its preservation and continued existence. The oppositors being members of a union
affiliated with PAFLU, they are under the same rules and regulations as their parent organization. The
constitution and by-laws of the superior body, together with the charter it issues to the subordinate
union, constitute an enforceable contract between the two, and between the members of the
subordinate union inter se.
b) Election of Officers: Qualifications; Manner of Election; Tenure and Compensation
Art. 249 (c) (f) (k). (supra on page 59)
Book V, Rule XII. Election of officers of labor unions and workers’ associations.
Sec. 1. Conduct of election of union officers; Procedure in the absence of provisions in the constitution
and by-laws.
In the absence of any agreement among the members or any provision in the constitution and by-laws
of a labor union or workers’ association, the following guidelines may be adopted in the election of
officers:
(a) within sixty (60) days before the expiration of the term of the incumbent officers, the president of
the labor organization shall constitute a committee on election to be composed of at least three (3)
members who are not running for any position in the election, provided that if there are identifiable
parties within the labor organization, each party shall have equal representation in the committee;
(b) upon constitution, the members shall elect the chairman of the committee from among
themselves, and in case of disagreement, the president shall designate the chairman;
(c) within ten (10) days from its constitution, the committee shall, among others, exercise the following
powers and duties:
1) set the date, time and venue of the election;
2) prescribe the rules on the qualification and eligibility of candidates and voters;
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3) prepare and post the voters’ list and the list of qualified candidates;
4) accredit the authorized representatives of the contending parties;
5) supervise the actual conduct of the election and canvass the votes to ensure the sanctity of
the ballot;
6) keep minutes of the proceedings;
7) be the final arbiter of all election protests;
8) proclaim the winners; and
9) prescribe such other rules as may facilitate the orderly conduct of election.
Sec. 2. Dispute over conduct of election of officers.
Where the terms of the officers of a labor organization have expired and its officers failed or neglected
to do so call for an election of new officers, or where the labor organization’s constitution and by-laws
do not provide for the manner by which the said election can be called or conducted and the
intervention of the Department is necessary, at least thirty percent (30%) of the members of the labor
organization may file a petition for the conduct of election of their officers with the Regional Office
that issued its certificate of registration or certificate of creation of chartered local.
In the case of federations, national or industry unions and trade union centers, the petition shall be
filed with the Bureau or the Regional Office but shall be heard and resolved by the Bureau.
This rule shall also apply where a conduct of election of officers is an alternative relief or necessary
consequence of a petition for nullification of election of officers, impeachment/expulsion of officers, or
such other petitions.
Sec. 3. Formal requirement and proceedings.

The formal requirements, processes and periods of disposition of this petition stated in Rule XI shall be
followed in the determination of the merits of the petition and appeal.
Sec. 4. Pre-election conference and conduct of election.

The appointment of an election officer and the procedures and periods in the conduct of the pre-
election conference and election proceedings prescribed in Rule IX shall also apply in the conduct of a
pre-election conference and election of officers in any labor organization.
Sec. 5. Applicability of the provisions of the labor organization’s constitution and by-laws.
Where the conduct of election of officers is ordered by the Med-Arbiter, the Bureau or Office of the
Secretary, the rules and regulations governing the filing of candidacies and conduct of election under
the constitution and by-laws of the labor organization may be applied in the implementation of the
decision, or new and additional rules may be adopted as agreed upon by the parties.
The entire proceedings shall be presided by the Election Officer from the Labor Relations Division of
the Regional Office of the Bureau. He/Shall act as the COMELEC referred to in the labor organization’s
constitution and by-laws and obligate himself/herself to comply with his/her mandate under the
decision to be implemented and the constitution and by-laws.
 Montano v Verceles (2010)

Company: FFW Legal Center
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Union: FFW Staff Association
Issue: Extent of the power of election committee
Doctrine: The Comelec is vested with the power under the FFW constitution to screen candidates and
determine their qualifications and eligibility to run, as well as adopt and promulgate rules concerning
the conduct of elections. Also, under the IRR of the LC, the Committee shall have the power to
prescribe rules on qualification and eligibility of candidates and rules to facilitate the orderly conduct
of elections. Also they are the final arbiter of all election protests. FFW constitution is clear: “ no
member of the Governing Board shall at the same time perform functions of the rank and file staff”
 KMP v Trajano (1985)

Company: Franklin Baker Company
Union: KMP
Issue: WON expulsion from the union for violation of the LC and Consti/by-laws calls for a referendum
to decide the same?
Doctrine: NO. Pursuant to Art. 242 of the Labor Code and Duyag v Inciong, the proper penalty for such
violations should be the expulsion from the Union, not a call for a referendum to decide the issue.
 Tancino v Ferrer-Calleja (1988)

Company: Imperial Textile Mills Inc.
Union: ITM-MEA
Issue: WON the segregation of votes during the union officer elections was validly done?
Doctrine: NO. The contention that the votes segregated during elections were done on the basis that
their names were not included in the list of members submitted to the BLR for union registration is
without merit. The submission of voters to the BLR as qualified members is not a condition sine qua
non to enable said members to vote in the election of union officers.
 Manalad v Trajano (1989)

Union: APCWU
Issue: WON the petitioners can re-assume their positions, as they have won in a previous election, if a
finding is to be made that the subsequent special election results are invalid?
Doctrine: NO. When the court called for the holding of special elections, there was an implied
nullification of the results of the previous elections. This being the case and petitioners having
participated in the said special elections, they cannot now claim a right to the positions under
consideration on the basis of the voided elections. Moreover, the terms under dispute have already
expired, making this case moot and academic.
 Miranda Jr v Asian Terminals, Inc. (2009)

Company: Asian Terminals Inc.
Union: APCWU
Issue: WON petitioner should be reinstated as “shop steward”, a union position that represents other
members within a particular department.
Doctrine: The position of “shop steward” being a purely union position, the petitioner’s removal
therefrom requires due process, and the substantiation of his alleged absenteeism that led to the loss
of trust and confidence causing his removal. Being such, the requirements imposed on an employer
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for the valid demotion of an employee do not apply to the reversion of petitioner from shop steward
to checker I, being that it is a union decision, not a company one. However, due to petitioner’s
separation from both union and company due to his quitclaim, he can no longer be reinstated to the
position.
c) Major Policy Matter
 Halili v CIR (1985)

Company: Halili Transit
Union: Halili Bus Drivers’ and Conductors’ Union
Issue: What is a major policy matter and how is it to be resolved?
Doctrine: Pursuant to Art. 242(d) of the Labor Code, members shall determine by secret ballot, after
due deliberation, any question of major policy affecting the entire membership of the organization,
unless the nature of the organization or force majeure renders such secret ballot impractical, in which
case the board of the organization may make the decision in behalf of the general membership.
The “retainer’s contract” that allows for exorbitant liens, in favor of the union counsel, upon awards
the union may receive is one such matter that must undergo the stated procedure.
d) Union Funds: Payment of Attorney’s Fees and Special Assessment
Art. 249(a), (b), (c), (g), (h), (j), (k), (l), (m), (n), (o), (p). (supra on page 59)
Art. 228(b). Appearances and fees.

(b) No attorney’s fees, negotiation fees or similar charges of any kind arising from any collective
bargaining agreement shall be imposed on any individual member of the contracting union: Provided,
However, that attorney’s fees may be charged against union funds in an amount to be agreed upon by
the parties. Any contract, agreement or arrangement of any sort to the contrary shall be null and void.
Art. 288. Visitorial power.

The Secretary of Labor and Employment or his duly authorized representative is hereby empowered to
inquire into the financial activities of legitimate labor organizations upon the filing of a complaint
under oath and duly supported by the written consent of at least twenty percent (20%) of the total
membership of the labor organization concerned and to examine their books of accounts and other
records to determine compliance or non-compliance with the law and to prosecute any violations of
the law and the union constitution and by-laws; Provided, That such inquiry or examination shall not
be conducted during the sixty (60)-day freedom period nor within the thirty (30) days immediately
preceding the date of election of union officials.
Book V, Rule XIII. (supra on page 63)
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 Pacific Banking Corp v Clave (1984)
Company: Pacific Banking Corp
Union: Pacific Banking Employees Organization
Issue: WON the attorney’s fees for counsel’s participation in CBA negotiations could be paid with
economic benefits received from such negotiations?
Doctrine: NO. There is no doubt that union counsel should be paid his fees but Art 222 ordains that
union funds be used for that purpose. The money herein does not constitute union funds but the
money of the employees. The union, not the employees, is obligated to the union counsel.
Art. 242, LC also provides that (n) no special assessment or other extraordinary fees may be levied
upon the members of a labor org unless authorized by a written resolution of a majority of members at
a general membership meeting duly called for the purpose. Secretary shall record minutes, member
attendance, votes cast, and shall be attested to by the president. (o) Other than for mandatory
activities, no special assessment, atty’s fees, negotiation fees or any other extraordinary fees may be
checked off from any amount due an employee without an individual written authorization duly signed
by the employee.
 Kaisahan at Kapatiran ng Manggagawa sa MWC-East Zone Union & Borela v Manila Water Co.
Company: Manila Water Co.
Union: KKM-MWC-EZU
Issue: WON Bad faith is essential for the award of attorney’s fees for withholding of wages?
Doctrine: NO. Although an express finding of facts and law is still necessary to prove the merit of the
award, there need not be any showing that the employer acted maliciously or in bad faith when it
withheld the wages before an award of attorney’s fees under Art. 111 shall be given. The employee’s
welfare should be the primary and paramount consideration.
Also, a distinction must be made as regards atty’s fees as payment for services, and those awarded as
penalty for forced litigation. (Ordinary AF’s v Extraordinary AF’s)
 Gabriel v SOLE (2000)

Company: Solidbank Corporation
Union: Solidbank Corporation Union
Issue: WON check off was validly done?
Doctrine: Three requisites for valid assessment: (1) authorization by written resolution by the majority
of members at a general meeting for that purpose, (2) secretary’s record of the minutes of the
meeting, (3) individual written authorization for check-off, duly signed by the employees concerned.
Failure to satisfy these requirements (as the union has done in this case) would make the check-offs
invalid.
 Gil v Gamilla (2009)

Company: UST
Union: UST Faculty Union
Issue: Was the 105 lump-sum check-off upon the economic benefits, arising from increases in tuition
fees, a valid assessment of fees?
Doctrine: NO. A check-off is a process by which the employer, upon agreement with the union or
authorization of employees, deducts union dues or agency fees from the latter’s wages and remits
them to the union for the promotion of continuous funding of the union. It is primarily for the benefit
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of the union, and not the individual employees. The benefits upon which the assessment was based
(tuition fee increases mandated by RA 6728) properly belonged as benefits to all employees, not the
union. It would be tantamount to a deduction of a statutory grant.
Also, the check-off failed to satisfy the requisities for valid assessment under the Labor Code.
e) Mandatory Activity
Art. 249 (o). (supra on page 59)
 Vengco v Trajano
Company: Anglo-American Tobacco Corp.
Union: Kapisanan ng Manggagawa sa AATC
Issue: WON attorney’s fees may be deducted from backwages?
Doctrine: NO. It is very clear from Art. 241(o), LC that attorney’s fees may not be deducted or check
off from any amount due to an employee without his written consent except for mandatory activities
under the Code. A mandatory activity is defined as a judicial process of settling a dispute laid down
by the law.
The amicable settlement entered to in this case cannot be considered as a mandatory activity under
the Code. While a claim was filed with the DOLE (herein Ministry of Labor), the case never reached its
conclusion in view of the settlement entered into by the parties. What is contemplated as such is a
situation where there is a judicial or administrative proceeding for recovery of wages.
 Galvadores v Trajano (1986)

Company: PLDT
Union: Manggagawa ng Komunikasyon sa Pilipinas-PLDT
Issue: WON the deduction of employee wages/salaries to answer for attorney’s fees is valid
Doctrine: NO. The provisions of the law are clear (Art. 222(b) and Art 242(o)). No check-offs from any
amounts due the employees may be effected without individual written authorization duly signed by
the employee specifically stating the amount, purpose and beneficiary of the deduction. The required
individual authorizations are not present in this case.
f) Union Information
Art. 249 (p). (supra on page 59)
 Continental Cement Corp Labor Union v Continental Cement (1990)

Company: Continental Cement Corp.
Union: Continental Cement Corp Labor Union
Issue: WON the penalty of dismissal for union officer’s was warranted in view of their illegal strike?
Doctrine: YES. As officers of the union, they are in a position of greater responsibility and are
expected to inform the union members of the laws of the prevailing labor relations system – including
the lawful way to strike. Instead, the officers’ misinformation of its members led them into staging an
illegal strike.
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g) Enforcement and Remedies; Procedure and Sanctions
Art. 291 (last par.). Miscellaneous provisions.

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.
Book V, Rule XIV. Cancellation of registration of labor organizations.

Sec. 1. Where to file.
Subject to the requirements of notice and due process, the registration of any legitimate independent
labor union, chartered local and workers' association may be cancelled by the Regional Director upon
the filing of a petition for cancellation of union registration, or application by the organization itself for
voluntary dissolution.
The petition for cancellation or application for voluntary dissolution shall be filed in the regional office
which issued its certificate of registration or creation.
In the case of federations, national or industry unions and trade union centers, the Bureau Director
may cancel the registration upon the filing of a petition for cancellation or application for voluntary
dissolution in the Bureau of Labor Relations.
Sec. 2. Who may file.

Any party-in-interest may commence a petition for cancellation of registration, except in actions
involving violations of Article 241, which can only be commenced by members of the labor
organization concerned.
Sec. 3. Grounds for cancellation.

Any of the following may constitute ground/s for cancellation of registration of labor organizations:
(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, the list of members who
took part in the ratification of the constitution and by-laws or amendments thereto, the minutes of
ratification, the list of members who took part in the ratification;
(b) failure to submit the documents mentioned in the preceding paragraph within thirty (30) days from
adoption or ratification of the constitution and by-laws or amendments thereto;
(c) voluntary dissolution by the members.
Sec. 4. Voluntary Cancellation of Registration; How Made.

A legitimate labor organization may cancel its registration provided at least two thirds (2/3) of its
general membership votes to dissolve the organization in a meeting duly called for that purpose and an
application to cancel its registration is thereafter submitted by the board of the organization to the
Regional/Bureau Director, as the case may be. The application shall be attested to by the president of
the organization.
Sec. 5. Action on the petition.
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The petition/application shall be acted upon by the Regional/Bureau Director, as the case may be. In
case of a petition for cancellation of registration, the formal requirements, processes and periods of
disposition stated in Rule XI shall be followed in the determination of the merits of the petition.
Sec. 6. Prohibited grounds for cancellation of registration.

The inclusion as union members of employees who are outside the bargaining unit shall not be a
ground to cancel the union registration. The ineligible employees are automatically deemed removed
from the list of membership of the union.
The affiliation of the rank-and-file and supervisory unions operating within the same establishment to
the same federation or national union shall not be a ground to cancel the registration of either union.
Book V, Rule XV. Registry of Labor Organizations and Collective Bargaining Agreements.
Sec. 1. National Registry.
The Bureau shall be the national registry of labor organizations and collective bargaining agreements.
As such it shall:
(a) maintain a national registry;
(b) within the month of March following the end of the calendar year, publish in the Department of
Labor and Employment website the lists of labor organizations and federations which have complied
with the reportorial requirements of Rule V and delinquent labor organizations;
(c) publish a list of officers of labor organizations with criminal conviction by final judgment; and
(d) verify the existence of a registered labor organization with no registered collective bargaining
agreement and which had no been complying with the reportorial requirements for at least five years.
The verification shall observe the following process:
(1) The Region Office shall make a report of the labor organization’s non-compliance and
submit the same to the Bureau for verification. The Bureau shall send by registered mail with return
card to the labor organization concerned, a notice for compliance indicating the documents it failed to
submit and the corresponding period in which they were required, with notice to comply with the said
reportorial requirements and to submit proof thereof to the Bureau within ten (10) days from receipt
thereof.
(2) Where no response is received by the Bureau within thirty (30) days from service of the
second notice, the Bureau shall publish the notice of non-existence of the labor organization/s in the
DOLE website.
(3) Where no response is received by the Bureau within thirty (30) days from date of
publication, or where the Bureau has verified the dissolution of the labor organization, it shall delist
the labor organization from the roster of legitimate labor organizations.
 Duyag v Inciong (1980)

Company: E. Razon Inc.
Union: APCWU
Issue: WON Med Arbiter has power to remove union officers?
Doctrine: YES. The tenure of union officers is not a matter of policy, outside of the Director’s
jurisdiction. Art 242 clearly provides that the Director of Labor Relations may remove erring union
officials after hearing and even without submitting the matter to union members. It is necessary and
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desirable that the BLR and Ministry of Labor should exercise close and constant supervisions over labor
unions, particularly in the handling of their funds so as to forestall abuses and venalities.
H. Union Chartering/Affiliation: Local and Parent Union Relations
Book V, Rule I. Sec. 1. (a) (i) (w) (kk). Definition of terms.

(a) "Affiliate" refers to an independent union affiliated with a federation, national union or a chartered
local which was subsequently granted independent registration but did not disaffiliate from its
federation, reported to the Regional Office and the Bureau in accordance with Rule III, Sections 6 and 7
of these Rules.
(i) "Chartered Local" refers to a labor organization in the private sector operating at the enterprise
level that acquired legal personality through the issuance of a charter certificate by a duly registered
federation or national union, and reported to the Regional Office in accordance with Rule III, Section 2-
E of these Rules.
(w) "Independent Union" refers to a labor organization operating at the enterprise level that acquired
legal personality through independent registration under Article 234 of the Labor Code and Rule III,
Section 2-A of these Rules.
(kk) "National Union" or "Federation" refers to a group of legitimate labor unions in a private
establishment organized for collective bargaining or for dealing with employers concerning terms and
conditions of employment for their member unions or for participating in the formulation of social and
employment policies, standards and programs, registered with the Bureau in accordance with Rule III,
Section 2-B of these Rules.
Book V, Rule III. Registration of labor organizations.

Applications for registration of independent labor unions, chartered locals, workers' associations shall
be filed with the Regional Office where the applicant principally operates. It shall be processed by the
Labor Relations Division at the Regional Office in accordance with Sections 2-A, 2-C, and 2-E of this
Rule.
Applications for registration of federations, national unions or workers' associations operating in more
than one region shall be filed with the Bureau or the Regional Offices, but shall be processed by the
Bureau in accordance with Sections 2-B and 2-D of this Rule.
Sec. 2. Requirements for application.

A. The application for registration of an independent labor union shall be accompanied by the
1) the name of the applicant labor union, its principal address, the name of its officers and their
respective addresses, approximate number of employees in the bargaining unit where it seeks to
operate, with a statement that it is not reported as a chartered local of any federation or national
union;
2) the minutes of the organizational meeting(s) and the list of employees who participated in the said
meeting(s);
3) the name of all its members comprising at least 20% of the employees in the bargaining unit;
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4) the annual financial reports if the applicant has been in existence for one or more years, unless it
has not collected any amount from the members, in which case a statement to this effect shall be
included in the application;
5) the applicant's constitution and by-laws, minutes of its adoption or ratification, and the list of the
members who participated in it. The list of ratifying members shall be dispensed with where the
constitution and by-laws was ratified or adopted during the organizational meeting. In such a case, the
factual circumstances of the ratification shall be recorded in the minutes of the organizational
meeting(s).
B. The application for registration of federations and national unions shall be accompanied by the
1) a statement indicating the name of the applicant labor union, its principal address, the name of its
officers and their respective addresses;
2) the minutes of the organizational meeting(s) and the list of employees who participated in the said
meeting(s);
3) the annual financial reports if the applicant union has been in existence for one or more years,
4) the applicant union's constitution and by-laws, minutes of its adoption or ratification, and the list of
the members who participated in it. The list of ratifying members shall be dispensed with where the
constitution and by-laws was ratified or adopted during the organizational meeting(s). In such a case,
the factual circumstances of the ratification shall be recorded in the minutes of the organizational
meeting(s);
5) the resolution of affiliation of at least ten (10) legitimate labor organizations, whether independent
unions or chartered locals, each of which must be a duly certified or recognized bargaining agent in the
establishment where it seeks to operate; and
6) the name and addresses of the companies where the affiliates operate and the list of all the
members in each company involved. Labor organizations operating within an identified industry may
also apply for registration as a federation or national union within the specified industry by submitting
to the Bureau the same set of documents.
C. The application for registration of a workers' association shall be accompanied by the following
documents:
1) the name of the applicant association, its principal address, the name of its officers and their
respective addresses;
2) the minutes of the organizational meeting(s) and the list of members who participated therein;
3) the financial reports of the applicant association if it has been in existence for one or more years,
4) the applicant's constitution and by-laws to which must be attached the names of ratifying members,
the minutes of adoption or ratification of the constitution and by-laws and the date when ratification
was made, unless ratification was done in the organizational meeting(s), in which case such fact shall
be reflected in the minutes of the organizational meeting(s).
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D. Application for registration of a workers' association operating in more than one region shall be
accompanied, in addition to the requirements in the preceding subsection, by a resolution of
membership of each member association, duly approved by its board of directors.
E. 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 local/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 local/chapter shall be entitled to all other rights and privileges of legitimate labor organization only
upon the submission of the following documents in addition to its charter certificate:
(a) The names of the local/chapter’s officers, their addresses, and the principal office of the
local/chapter: and
(b) The chapter’s constitution and by-laws 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 genuineness and due execution of the supporting requirements shall be certified under oath by
the secretary or treasurer of the local/chapter and attested to by its president.
Sec. 3. Notice of change of name of labor organizations; Where to file.

The notice for change of name of a registered labor organization shall be filed with the Bureau or the
Regional Office where the concerned labor organization's certificate of registration or certificate of
creation of a chartered local was issued.
Sec. 4. Requirements for notice of change of name.

The notice for change of name of a labor organization shall be accompanied by the following
documents:
(a) proof of approval or ratification of change of name; and
(b) the amended constitution and by-laws.
Sec. 5. Certificate of Registration/Certificate of Creation of Chartered Local for change of name.

The certificate of registration and the certificate of creation of a chartered local issued to the labor
organization for change of name shall bear the same registration number as the original certificate
issued in its favor and shall indicate the following: (a) the new name of the labor organization; (b) its
former name; (c) its office or business address; and (d) the date when the labor organization acquired
legitimate personality as stated in its original certificate of registration/certificate of creation of
chartered local.
Sec. 6. Report of Affiliation with federations or national unions; Where to file.

The report of affiliation of an independently registered labor union with a federation or national union
shall be filed with the Regional Office that issued its certificate of registration.
Sec. 7. Requirements of affiliation.

The report of affiliation of independently registered labor unions with a federation or national union
shall be accompanied by the following documents:
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(a) resolution of the labor union's board of directors approving the affiliation;
(b) minutes of the general membership meeting approving the affiliation;
(c) the total number of members comprising the labor union and the names of members who
approved the affiliation;
(d) the certificate of affiliation issued by the federation in favor of the independently registered labor
union; and
(e) written notice to the employer concerned if the affiliating union is the incumbent bargaining agent.
Sec. 8. Notice of Merger/Consolidation of labor organizations; Where to file.

Notice of merger or consolidation of independent labor unions, chartered locals and workers'
associations shall be filed with and recorded by the Regional Office that issued the certificate of
registration/certificate of creation of chartered local of either the merging or consolidating labor
organization. Notice of merger or consolidation of federations or national unions shall be filed with and
recorded by the Bureau.
Sec. 9. Requirements of notice of merger.

The notice of merger of labor organizations shall be accompanied by the following documents:
(a) the minutes of merger convention or general membership meeting(s) of all the merging labor
organizations, with the list of their respective members who approved the same; and
(b) the amended constitution and by-laws and minutes of its ratification, unless ratification transpired
in the merger convention, which fact shall be indicated accordingly.
Sec. 10. Certificate of Registration.

The certificate of registration issued to merged labor organizations shall bear the registration number
of one of the merging labor organizations as agreed upon by the parties to the merger.
The certificate of registration shall indicate the following: (a) the new name of the merged labor
organization; (b) the fact that it is a merger of two or more labor organizations; (c) the name of the
labor organizations that were merged; (d) its office or business address; and (e) the date when each of
the merging labor organizations acquired legitimate personality as stated in their respective original
certificate of registration.
Sec. 11. Requirements of notice of consolidation. - The notice of consolidation of labor organizations
shall be accompanied by the following documents:
(a) the minutes of consolidation convention of all the consolidating labor organizations, with the list of
their respective members who approved the same; and
(b) the amended constitution and by-laws, minutes of its ratification transpired in the consolidation
convention or in the same general membership meeting(s), which fact shall be indicated accordingly.
Sec. 12. Certificate of Registration.

The certificate of registration issued to a consolidated labor organization shall bear the registration
number of one of the consolidating labor organizations as agreed upon by the parties to the
consolidation.
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The certificate of registration shall indicate the following (a) the new name of the consolidated labor
organization; (b) the fact that it is a consolidation of two or more labor organizations; (c) the name of
the labor organizations that were consolidated; (d) its office or business address; and (e) the date
when each of the consolidating labor organizations acquired legitimate personality as stated in their
respective original certificates of registration.
1. Purpose and Nature of Relations
 Philippine Skylanders Inc v NLRC (2002)

Company: Philippine Skylanders Inc.
Union: PAFLU, and Phil. Skylanders Employees’ Association (PSEA)
Issue: WON PSEA could validly disaffiliate from PAFLU pending the settlement of an election protest
questioning its status as SEBA
Doctrine: YES. There is nothing in the records, nor anything claimed by PAFLU that the local union was
expressly prohibited from disaffiliating from the federation. Neither was there any condition imposed
for a valid breakaway. The pendency of the election protest involving both the federation and the
union was not a bar to a valid disaffiliation. Neither did PAFLU dispute that 92% of total union
membership supported such disaffiliation. Having validly severed itself from PAFLU, nothing prevents
PSEA from affiliating with NCW.
As in Liberty Cotton Worker’s Union v Liberty Cotton Mills, local unions have the right to separate
from their parent federations on the ground that as a separate and voluntary association, local
unions do not owe their creation and existence to the national union with which they are affiliated,
but instead to the will of their members.
2. Requirements for Registration
a) Chartered Local (local/chapter
Book V, Rule I, Sec. 1. (i). (supra on page 71)
Book V, Rule I, Section 2(E)

“A duly-registered federation or national union may directly create a chartered local by submitting to
the Regional Office two (2) copies of the following:
(b) The names of the local/chapter’s officers, their addresses, and the principal office of the
local/chapter; and
(c) The local/chapter’s constitution and by-laws, provided that where the local/chapter’s constitution
and by-laws is the same as that of the federation or national union, this fact shall be indicated
accordingly.
Treasurer of the local/chapter and attested by its President.”
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 SMC Employees Union v SM Packaging (2007)
Company: San Miguel Corp.
Union: SMCEU-PTGTWO (petitioner), SMPPEU-PDMP (respondent)
Issue: WON PDMP, as a trade-union center, can directly create a local/chapter?
Doctrine: NO. Under the applicable implementing rules, the power to directly create a chapter/local
through chartering is given to federations and national unions, but not to trade union centers. Thus,
SMPPEU-PDMP cannot be created through the more lenient requirements for chartering, but must
have complied with the more stringent rules for creation and registration of an independent union.
b) Affiliate
Book V, Rule I, Sec. 1. (i). (supra on page 71)
Book V, Rule III. Sec. 7. (supra on page 71)
c) National Union or Federation
 Filipino Pipe & Foundry Corp v NLRC (1999)

Company: Filipino Pipe & Foundry Corp.
Union: NLU-TUCP, and FPW-NLU (local/chapter)
Issue: WON the Federation should be liable for the damages claimed against a local?
Doctrine: NO. The relationship between parent-union and local was discussed in Progressive
Development, citing Liberty Cotton Mills as saying: “that the mother union, acting in behalf of its
affiliate, had the status of an agent while the local union remained the basic unit of the association,
free to serve the common interest of all its members, subject only to the restraints imposed by the
constitution and by-laws of the association” This applies even if the local union is not a legitimate labor
organization.
Legitimacy is necessary in the filing of a petition for certification election but immaterial to the claim in
this case. As the local union, it is responsible for the resulting damages claimed.
 Sugbuanon Rural Bank v Laguesma (2000)

Company: Sugbuanon Rural Bank
Union: SRBI-APSOTEU-TUCP
Issue: WON the local is a mere alter-ego of the federation?
Doctrine: NO. A local union maintains its separate personality despite affiliation with a larger national
federation.
3. Supervisor/Rank and File Union Affiliation
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Art. 255. 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.
 Atlas Lithographic Services Inc. v Laguesma (1992)

Company: Atlas Lithographic Services Inc.
Union: ALSI-SAPPACEA-KAMPIL
Issue: WON local supervisory union may affiliate with a federation of rank and file employees, actively
bargaining with the same employer
Doctrine: NO. A conflict of interest may arise in the areas of discipline, collective bargaining and strikes
because of a supervisor’s identification with the interests of the employer. Art. 245, LC provides for the
prohibition of supervisors joining rank-and-file unions.
If the intent of the law is to avoid a situation where supervisors would merge with the rank-and-file or
would represent conflicting interests, then a local supervisor’s union should not be allowed to affiliate
with the national federation of rank-and-file employees, where that federation actively participates in
union activity in the company.
The Adamson case, where SV and RF are allowed to co-mingle, is inapplicable in two respects: (1) the
rank-and-file in Adamson were not under the supervision of the supervisors involved, and (2) the
national union therein did not actively represent its local chapters.
 De La Salle vs Laguesma (1998)

Company: De La Salle University Medical Center and College of Medicine
Union: Federation of Free Workers- De La Salle University Medical Center and College of Medicine
Supervisory Union Chapter, FFW
Issue: Both unions formed independently by supervisory and rank-and-file employees of a company
are affiliated with the same national federation.
Held: VALID.
Ratio: Invalid if these two conditions concur:
1. The rank-and-file employees are directly under the authority of supervisory employees.
2. The national federation is actively involved in union activities in the company.
 Holy Child vs Sto. Tomas (2013)

Company: Holy Child Catholic School
Union: PINAG-ISANG TINIG AT LAKAS NG ANAKPAWIS – HOLY CHILD CATHOLIC SCHOOL TEACHERS AND
EMPLOYEES LABOR UNION
Issue: School opposed the filing of PCE on the ground that the labor organization’s membership
allegedly consists of supervisory and rank-and-file employees.
HELD: School cannot collaterally attack the LO’s legitimacy.
Ratio: The alleged inclusion of supervisory employees in a labor organization seeking to represent the
bargaining unit of rank-and-file employees does not divest it of its status as a legitimate labor
organization, and its right to file a PCE. The resolution of WON there was co-mingling is best left for the
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inclusion-exclusion proceedings. Following the UP ruling, there should be two separate bargaining units
for academic and non-academic personnel.
4. Local Union Disaffiliation/Mass Disaffiliation
 MSMG-UWP vs Ramos (2000)

Union: MALAYANG SAMAHAN NG MGA MANGGAGAWA SA M. GREENFIELD
Issue: Company dismissed union officers upon the labor federation’s demand for the enforcement of
the union security clause embodied in their collective bargaining agreement.
Held: Illegal dismissal.
Ratio: While company may validly dismiss the employees expelled by the union for disloyalty under the
union security clause of the collective bargaining agreement upon the recommendation by the union,
this dismissal should not be done hastily and summarily thereby eroding the employees’ right to due
process, self-organization and security of tenure. Even on the assumption that the federation had valid
grounds to expel the union officers, due process requires that these union officers be accorded a
separate hearing by company.
 Philippine Skylanders vs NLRC (2002)

Company: Philippine Skylanders
Union: PSEA-PAFLU
Issue: Pending resolution of a certification election dispute, PSEA sent notice of disaffiliation to PAFLU.
Held: Valid disaffiliation.
Ratio: Local unions have the right to separate from their mother federation on
the ground that as separate and voluntary associations, local unions do not owe their creation and
existence to the national federation to which they are affiliated but, instead, to the will of their
members. They are free to renounce the affiliation upon the terms laid down in the agreement which
brought such affiliation into existence. In this case, there is nothing shown in the records nor is it
claimed by PAFLU that the local union was expressly forbidden to disaffiliate from the federation nor
were there any conditions imposed for a valid breakaway
 Philippine Labor Alliance Council vs BLR (1977)
Union: PLAC, FFW
Issue: FFW sought a certification election, asserting that there was a mass disaffiliation from the
present bargaining agent.
Held: Petition for certification election granted.
Ratio: Once the fact of disaffiliation has been demonstrated beyond doubt, as in this case, a
certification election is the most expeditious way of determining which labor organization is to be the
exclusive bargaining representative.
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a) Period of Disaffiliation
 Alliance of Nationalist and Genuine Labor Organization vs SAMANA (1996)
Unions: ANGLO and its affiliate, SAMANA
Issue: SAMANA disaffiliated from ANGLO during the existence of a CBA and before the freedom period
set in.
Held: Disaffiliation is valid.
Ratio: Although P.D. 1391 provides that no petition for certification election, for intervention and
disaffiliation shall be entertained or given due course except within the 60-day freedom period
immediately preceeding the expiration of a collective bargaining agreement, said law is definitely not
without exceptions. Settled is the rule that a local union has the right to disaffiliate from its mother
union when circumstances warrant. Generally, a labor union may disaffiliate from the mother union to
form a local or independent union only during the 60-day freedom period immediately preceding the
expiration of the CBA. However, even before the onset of the freedom period, disaffiliation may be
carried out when there is a shift of allegiance on the part of the majority of the members of the union.
b) Effect of Disaffiliation
 Volkschel Labor Union vs BLR (1985)

Unions: ALUMETAL and its affiliate, VLU
Issue: Following its disaffiliation, VLU revoked its check-off authorization to ALUMETAL.
Held: ALUMETAL no longer entitled to receive the dues. It has already been notified of VLU’s
disaffiliation and rescission of authority.
Ratio: A national union or federation is entitled to receive the dues as long as: 1. Local union is
affiliated with it and 2. Companies are authorized by their employees (members of local union) to
deduct union dues. The obligation of an employee to pay union dues is coterminous with his affiliation
or membership. "The employees' check-off authorization, even if declared irrevocable, is good only as
long as they remain members of the union concerned. A contract between an employer and the
parent organization as bargaining agent for the employees is terminated by the disaffiliation of the
local of which the employees are members.
“A local union which has validly withdrawn from its affiliation with the parent association and which
continues to represent the employees of an employer is entitled to the check-off dues under a
collective bargaining contract."
 Villar vs Inciong
Issue: WON FUR, which has disaffiliated from the mother union, can present representation issues.
Held: No.
Ratio: When an unregistered local disaffiliated from the mother federation, it is deemed divested of its
legal personality and thus, cannot exercise rights granted to legitimate labor organizations.
 Alliance of Nationalist and Genuine Labor Organization vs SAMANA (1996)

Unions: ANGLO and its affiliate, SAMANA
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Issue: SAMANA disaffiliated from ANGLO during the existence of a CBA and before the freedom period
set in.
Held: Disaffiliation is valid.
Ratio: Although P.D. 1391 provides that no petition for certification election, for intervention and
disaffiliation shall be entertained or given due course except within the 60-day freedom period
immediately preceeding the expiration of a collective bargaining agreement, said law is definitely not
without exceptions. Settled is the rule that a local union has the right to disaffiliate from its mother
union when circumstances warrant. Generally, a labor union may disaffiliate from the mother union to
form a local or independent union only during the 60-day freedom period immediately preceding the
expiration of the CBA. However, even before the onset of the freedom period, disaffiliation may be
carried out when there is a shift of allegiance on the part of the majority of the members of the union.
I. Union Security
1. Statutory Basis and Rationale
Art. 258 (e). (supra on page 42)
 Del Monte Phil. Inc vs Saldivar

Company: Del Monte Phil. Inc.
Union: Associated Labor Union
Issue: Expelled members of the ALU were dismissed by Del Monte as a result of the enforcement of a
closed-shop provision in the CBA between the employer and the union.
Held: Illegal dismissal.
Ratio: The CBA obviously adopts a closed-shop policy which mandates, as a condition of employment,
membership in the exclusive bargaining agent. A "closed-shop" may be defined as an enterprise in
which, by agreement between the employer and his employees or their representatives, no person
may be employed in any or certain agreed departments of the enterprise unless he or she is, becomes,
and, for the duration of the agreement, remains a member in good standing of a union entirely
comprised of or of which the employees in interest are a part. A CBA provision for a closed-shop is a
valid form of union security and it is not a restriction on the right or freedom of association guaranteed
by the Constitution.
Even if the dismissal of an employee is conditioned not on the grounds for termination under the Labor
Code, but pursuant to the provisions of a CBA, it still is necessary to observe substantive due process in
order to validate the dismissal. As applied to the Labor Code, adherence to substantive due process is a
requisite for a valid determination that just or authorized causes existed to justify the dismissal. As
applied to the dismissals grounded on violations of the CBA, observance of substantial due process is
indispensable in establishing the presence of the cause or causes for dismissal as provided for in the
CBA.
2. Validity Agreement and Effect on Freedom of Choice; Types of Union Security Provisions
 Alabang Country Club Inc. vs NLRC (2008)

Company: Alabang Country Club, Inc.
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Union: Alabang Country Club Independent Employees Union
Issue: Past officers of the union were expelled for malversation of funds. They were dismissed by the
Club pursuant to a union security clause in the CBA.
Held: Valid dismissal.
Ratio: One cause for termination is dismissal from employment due to the enforcement of the union
security clause in the CBA. In this case, the CBA contains provisions on the Union shop and
maintenance of membership shop.
There is union shop when all new regular employees are required to join the union within a certain
period as a condition for their continued employment. There is maintenance of membership shop
when employees who are union members as of the effective date of the agreement, or who thereafter
become members, must maintain union membership as a condition for continued employment until
they are promoted or transferred out of the bargaining unit or the agreement is terminated.
In terminating the employment of an employee by enforcing the union security clause, the employer
needs only to determine and prove that:
(1 the union security clause is applicable;
(2) the union is requesting for the enforcement of the union security provision in the CBA; and (3)
there is sufficient evidence to support the union's decision to expel the employee from the union.
(Most importantly, company should observe DUE PROCESS to validate the dismissal)
3. Coverage: Worker Inclusion and Exclusion
 Guijarno v. CIR (1973)

Company: Central Santos Lopez Co., Inc.
Union/s: United Sugar Workers Union-ILO
Employees: Guijarno, et. al.
Issue: Retroactivity of a Closed-Shop Agreement
Doctrine: In Freeman Shirt Manufacturing Co., Inc. v. Court of Industrial Relations: "The closed-shop
agreement authorized under sec. 4, subsec. a(4) of the Industrial Peace Act above quoted should
however, apply to persons to be hired or to employees who are not yet members of any labor
organization. It is inapplicable to those already in the service who are members of another union. To
hold otherwise, i. e., that the employees in a company who are members of a minority union may be
compelled to disaffiliate from their union and join the majority or contracting union, would render
nugatory the right of all employees to self-organization and to form, join or assist labor organizations
of their own choosing, a right guaranteed by the Industrial Peace Act (sec. 3, Rep. Act No. 875) as well
as by the Constitution (Art. III, sec. 1[6])."
It is then the individual employee, as a separate, finite human being, with his problems and his needs,
who must be attended to. He is the beneficiary of the concern thus made manifest by the fundamental
law. Where does that leave a labor union, it may be asked. Correctly understood, it is nothing but the
means of assuring that such fundamental objectives would be achieved. It is the instrumentality
through which an individual laborer who is helpless as against a powerful employer may, through
concerted effort and activity, achieve the goal of economic well-being.
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4. Implementation: Obligation and Liabilities
 Alabang Country Club Inc. vs NLRC (2008)

Company: Alabang Country Club, Inc.
Union: Alabang Country Club Independent Employees Union
Issue: Past officers of the union were expelled for malversation of funds. They were dismissed by the
Club pursuant to a union security clause in the CBA.
Held: Valid dismissal.
Ratio: One cause for termination is dismissal from employment due to the enforcement of the union
security clause in the CBA. In this case, the CBA contains provisions on the Union shop and
maintenance of membership shop.
There is union shop when all new regular employees are required to join the union within a certain
period as a condition for their continued employment. There is maintenance of membership shop
when employees who are union members as of the effective date of the agreement, or who thereafter
become members, must maintain union membership as a condition for continued employment until
they are promoted or transferred out of the bargaining unit or the agreement is terminated.
In terminating the employment of an employee by enforcing the union security clause, the employer
needs only to determine and prove that:
(1 the union security clause is applicable;
(2) the union is requesting for the enforcement of the union security provision in the CBA; and (3)
there is sufficient evidence to support the union's decision to expel the employee from the union.
(Most importantly, company should observe DUE PROCESS to validate the dismissal)
 NUWHRAIN vs NLRC (2008)

Company: Dusit Hotel Nikko
Union: NUWHRAIN
Issue: Following a bargaining deadlock, some Union members went to work sporting a shaven heads.
They were not allowed to enter the premises, thus they staged a picket instead. Company terminated
Union officers and its members.
Held: Illegal strike.
Ratio: Union is bound by the CBA, particularly its No Strike/Work Stoppage and Lockout provision.
Furthermore, Union has duty and responsibility to bargain in good faith. By shaving their heads and
cropping their hair, the Union officers and members violated the rule prohibiting the commission of
any act which will disrupt or impede the early settlement of the labor disputes that are under
conciliation.
The Union officers may be dismissed pursuant to the LC which imposes the penalty of dismissal on "any
union officer who knowingly participates in an illegal strike."
However, members should be reinstated because: “union members who participated in an illegal strike
but were not identified to have committed illegal acts are entitled to be reinstated to their former
positions but without backwages (G.S. Transport vs Infante).
5. Financial Security: Agency Shop and Check-Off
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 Del Pilar Academy vs Del Pilar Academy Employees Union (2008)
Company: Del Pilar Academy
Union: DPAEU
Issue: WON Union is entitled to collect agency fees from non-union members, and if so, whether an
individual written authorization is necessary for a valid check off.
Held: Valid deduction of the agency fees. No need for individual check off authorization from the non-
union employees.
Ratio: “Employees of an appropriate collective bargaining unit who are not members of the recognized
collective bargaining agent may be assessed reasonable fees equivalent to the dues and other fees
paid by the recognized collective bargaining agent, if such non-union members accept the benefits
under the collective bargaining agreement”
When so stipulated in a collective bargaining agreement or authorized in writing by the employees
concerned it is the duty of the employer to deduct the sum equivalent to the amount of union dues, as
agency fees, from the employees' wages for direct remittance to the union. The system is referred to
as check off. No requirement of written authorization from the non-union employees is necessary if
the non-union employees accept the benefits resulting from the CBA.
V. THE APPROPRIATE BARGAINING UNIT

A. Definition and Role of Law
Art. 231. Contempt powers of the secretary of labor.

In the exercise of his powers under this Code, the Secretary of Labor may hold any person in direct or
indirect contempt and impose the appropriate penalties therefor.
Book V, Rule I, Sec. 1(d). Definition of terms.

(d) "Bargaining Unit" refers to a group of employees sharing mutual interests within a given employer
unit, comprised of all or less than all of the entire body of employees in the employer unit or any
specific occupational or geographical grouping within such employer unit.
 Belyca Corporation vs Calleja (1988)

Company: Belyca Corporation
Union: Associated Labor Union-TUCP
Issue: ALU seeks certification as the SEBA of all the RAF workers of the livestock and agro division.
Belyca contends that the bargaining unit must include all the workers in its integrated business
concerns (supermarts and cinemas).
Held: RAF workers of the livestock and agro division should form a separate bargaining unit.
Ratio: Factors in determining the appropriate bargaining unit:
"(1) will of employees (Globe Doctrine);
(2) affinity and unity of employee's interest, such as substantial similarity of work and duties or
similarity of compensation and working conditions;
(3) prior collective bargaining history; and
(4) employment status, such as temporary, seasonal and probationary employees"
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Court stressed the importance of the fourth factor: temporary employees should be treated separately
from permanent employees. But more importantly, the test of proper grouping is community and
mutuality of interest. In any event, the basic test of an asserted bargaining unit's acceptability is
whether or not it is fundamentally the combination which will best assure to all employees the exercise
of their collective bargaining rights.
B. Determination of Appropriate Bargaining Unit

1. Factors in Unit Determination
 UP vs Ferrer-Calleja (1992)
Company: University of the Philippines
Union: All UP Worker’s Union(academic and non-academic), ONAPUP (non-academic)
Issue: WON academic and non-academic personnel in the entire UP system should compose two
separate bargaining units.
Held: YES!
Ratio:” UP employees may quite easily be categorized into two general classes: the group composed of
employees whose functions are non-academic and the group made up of those performing academic
functions. Not much reflection is needed to perceive that the community or mutuality of interests
which justifies the formation of a single collective bargaining unit is wanting between the academic
and non-academic personnel of the university. The dichotomy of interests, the dissimilarity in the
nature of the work and duties as well as in the compensation and working conditions of the academic
and nonacademic personnel dictate the separation of these two categories of employees for purposes
of collective bargaining.”
 San Miguel Corporation vs Laguesma (1994)

Company: San Miguel Corporation
Union: North Luzon Magnolia Sales Labor Union
Issue: WON collective bargaining history should be most persuasive criterion in determining the
appropriateness of the collective bargaining unit.
Held: NO!
Ratio: The existence of a prior collective bargaining history is neither decisive nor conclusive in the
determination of what constitutes an appropriate bargaining unit. Indeed, the test of grouping is
mutuality or commonality of interests. The employees sought to be represented by the collective
bargaining agent must have substantial mutual interests in terms of employment and working
conditions as evinced by the type of work they perform. In this case, Union sought to represent the
sales personnel in the various Magnolia sales offices in northern Luzon. There is similarity of
employment status for only the regular sales personnel are covered. They have the same duties and
responsibilities and substantially similar compensation and working conditions.
 Phil. Hotel and Resort, Inc. v. Manila Diamond Hotel Employees Union (2006)
Company: Phil. Hotel and Resort Inc.
Union: Manila Diamond Hotel Employees Union
Issue: WON refusal of the hotel to bargain with Union can be considered an unfair labor practice to
justify the staging of the strike.
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Held: Illegal strike.
Ratio: Only the labor organization designated or selected by the majority of the employees in an
appropriate collective bargaining unit is the exclusive representative of the employees in such unit for
the purpose of collective bargaining. The union is admittedly not the exclusive representative of the
majority of the employees, hence, it could not demand from employer the right to bargain collectively
in their behalf. Anent the other contention that it was bargaining in behalf only of its members: it
would only “fragment the employees. What Union will be achieving is to divide the employees, more
particularly, the rank-and-file employees; the other workers who are not members are at a serious
disadvantage, because if the same shall be allowed, employees who are non-union members will be
economically impaired and will not be able to negotiate their terms and conditions of work, thus
defeating the very essence and reason of collective bargaining, which is an effective safeguard against
the evil schemes of employers in terms and conditions of work.
2. Unit Severance and Globe Doctrine
 Kapisanan ng mga Manggagawa sa Manila Railroad Co. vs Yard Crew Union (1960)
Company: Manila Railroad Company
Union: Kapisanan Ng Mga Manggagawa Sa Manila Railroad Company
Issue: WON the order granting groups of employees to choose whether or not they desire to be
separated from the certified unit to which they belong, during the existence of a valid bargaining
contract entered into by a union is contrary to law?
Held: NO!
Ratio: To determine which of the several claimant groups forms a proper bargaining unit, it becomes
necessary to give consideration to the express will or desire of the employees — a practice designated
as the "Globe doctrine," which sanctions the holding of a series of elections, not for the purpose of
allowing the group receiving an over all majority of votes to represent all employees, but for the
specific purpose of permitting the employees in each of the several categories to select the group
which each chooses as a bargaining unit. A plebiscite is ordered in this case because: "the votes of
workers one way or the other, in these cases will not by any chance choose the agent or unit which will
represent them anew, for precisely that is a matter that is within the issues raised in these petitions for
certification".
 Mechanical Departmental Labor Union vs CIR (1968)

Company: Phil. National Railways-Mechanical Department
Union: Mechanical Department Labor Union (Manila Shed), Samahan ng mga Manggagawa sa Caloocan
Shops (Caloocan Shops)
Issue: WON a new unit should be established, the Caloocan shops, separate and distinct from the rest
of the workers under the Mechanical Department now represented by the MDLU.
Held: YES!
Ratio: There is certainly a community of interest among the workers of the Caloocan Shops. They are
grouped in one place. They work under one or same working condition, same working time or schedule
and are exposed to same occupational risk. Though evidence shows that workers at the Caloocan
Shops perform the same nature of work as their counterparts in the Manila Shed, the difference lies in
the fact that workers at the Caloocan Shops perform major repairs while those in the Manila Shed,
works on minor repairs. Furthermore, applying the Globe Doctrine, which considers the will of the
employees in determining which union should represent them and the history of "union
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representation" in the railway company, indicating that bargaining units had been formed through
separation of new units from existing ones whenever plebiscites had shown the workers' desire to
have their own representatives, a plebiscite is deemed proper.
3. Effect of Prior Agreement
 General Rubber and Footwear Corporation vs BLR (1987)

Company: General Rubber Corp.
Union: Samahang Manggagawa sa General Rubber Corp. – ANGLO (daily paid), General Rubber
Workers Union, National Association of Trade Unions of Monthly Paid Employees-NATU (monthly paid)
Issue: WON it was for the BLR to sanction the creation of two bargaining units within the corporation.
Held: YES! Prior agreement to which the union was not privy thereto is not binding.
Ratio: Company, maintained that the exclusion of the members of the NATU from the bargaining union
of the rank-and-file or from forming their own union was agreed upon by corporation with the
previous bargaining representatives namely: the General "Rubber Workers Union PTGWO the General
Workers Union — NAFLU and the General Rubber Workers Union. It has not been shown that NATU
was privy to this agreement. And even if it were so, it can never bind subsequent federations and
unions particularly NATU because it is a curtailment of the right to self-organization guaranteed by the
labor laws.
4. Effect of Including Employees Outside of the Bargaining Unit
 Samahang Manggagawa sa Charter Chemical – SUPER v. Charter Chemical & Coating Corp.
Company: Charter Chemical and Coating Corp.
Union: Samahang Manggagawa sa Charter Chemeical-SUPER
Issue: WON the inclusion of supervisory EEs in a labor organization seeking to represent the bargaining
unit of rank-and-file EEs divest it of its status as a legitimate labor organization, so as to cause the
dismissal of its PCE.
Held: No, it remains a legitimate labor organization.
Ratio: Supervisory EE’s inclusion in the union does not divest the union of its legitimate status. The
1989 Amended Omnibus Rules removed the requirement that a petition for certification election
indicate that the rank-and-file bargaining unit is not mingled with supervisory EEs. 1997 Amended
Omnibus Rules only requires a plain description of the bargaining unit and does not require that a local
union submit its list of members for registration. IN the Tagaytay ruling it was held that while there is a
prohibition against the mingling of supervisory and rank-and-file EEs in one labor organization, the
Labor Code does not provide the effects of such mingling. Thus, after a labor organization is registered
it may exercise all rights and privileges of a legitimate labor organization. Any mingling cannot affect its
legitimacy, as it is not one of the grounds for the cancellation of its registration, unless such mingling
was brought about by misrepresentation, false statement, or fraud. Lastly, the employer cannot attack
collaterally the union’s legal personality in a petition for certification election.
C. Determining Agency
Art. 232. Bureau of labor relations.

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agreement of the parties.
Art. 237. Prohibition on certification election.

The Bureau shall not entertain any petition for certification election or any other action which may
disturb the administration of duly registered existing collective bargaining agreements affecting the
parties except under Articles 253, 253-A and 256 of this Code.
VI. UNION REPRESENTATION

A. Pre-condition: Employer-employee Relationship
 Allied Free Workers Union v. Cia Martima (1967)
Company: Compania Maritima

Union: AFWU
Issue: WON there is an EE-ER relationship between AFWU and Compania to warrant a certification
election.
Held: No, before certification election can be held, there must be an EE-ER relationship between the ER
and petitioning union.
Ratio: The duty to bargain collectively exists only between the “employer” and its “employees.” Where
there is no duty to bargain collectively, it is not proper to hold certification elections in connection
therewith. It was observed that AFWU operated as an independent labor contractor under the so-
called “cabo” system. And, being an independent contractor, it could not qualify as an "employee".
Since the only function of a certification election is to determine, with judicial sanction, which union
shall be the official representative or spokesman of the “employees” will be, there being no ER-EE
relationship between the parties disputants, it follows that there is neither a duty to bargain
collectively. Thus, the order for certification election is not proper.
B. Methods of Establishing Majority Status

1. Policy/Purpose
Art. 266. Exclusive bargaining representation and workers’ participation in policy and decision-making.
The labor organization designated or selected by the majority of the employees in an appropriate
collective bargaining unit shall be the exclusive representative of the employees in such unit for the
purpose of collective bargaining. However, an individual employee or group of employees shall have
the right at any time to present grievances to their employer.
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employers may form labor-management councils; Provided, That the representatives of the workers in
establishment.
Art. 250(b). Rights of legitimate labor organizations.

Book V, Rule VI. Sec. 1. Policy.

It is the policy of the State to promote free trade unionism through expeditious procedures governing
the choice of an exclusive bargaining agent. The determination of such exclusive bargaining agent is a
non-litigious proceeding and, as far as practicable, shall be free from technicalities of law and
procedure, provided only that in every case, the exclusive bargaining agent enjoys the majority support
of all the employees in the bargaining unit.
Art. 218. Declaration of policy.

It is the policy of the State:
(b) To promote free trade unionism as an instrument for the enhancement of democracy and the
1987 Constitution, Art. XIII, Sec. 3. (supra on page 7)
 Reyes vs Trajano
Issue: WON INK ee’s who are not members of any union may participate in the certification election.
Held: Yes, they can.
Ratio: Neither law, administrative rule nor jurisprudence requires that only employees affiliated with
any labor organization may take part in a certification election. On the contrary, the plainly discernible
intendment of the law is to grant the right to vote to all bona fide employees in the bargaining unit,
whether they are members of a labor organization or not. Collective bargaining covers all aspects of
the employment relation and the resultant CBA negotiated by the certified union binds all employees
in the bargaining unit. Hence, all rank-and-file employees, probationary or permanent, have a
substantial interest in the selection of the bargaining representative. The Code makes no distinction as
to their employment for certification election. The law refers to "all" the employees in the bargaining
unit. All they need to be eligible to support the petition is to belong to the "bargaining unit".
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 Samahang Manggagawa sa PERMEX v. SOLE (1998)
Company: Permex Producer and Exporter Corporation
Union: NFL, Samahang Manggagawa sa Permex-Philippine Integrated Industries Labor Union
Issue: WON voluntary recognition by the employer via bargaining collectively with the union makes the
latter the exclusive bargaining agent of the employees.
Held: No.
Ratio: Ordinarily, in an unorganized establishment, it is the union that files a petition for a certification
election if there is no certified bargaining agent for the workers in the establishment. If a union asks
the employer to voluntarily recognize it as the bargaining agent of the employees, it in effect asks the
employer to certify it as the bargaining representative of the employees — a certification which the
employer has no authority to give, for it is the employees’ prerogative (not the employer’s) to
determine whether they want a union to represent them, and, if so, which one it should be. The
company did not have the power to declare the union the exclusive representative of the workers for
the purpose of collective bargaining. Ratification of the CBA is immaterial. It is not enough that a union
has the support of the majority of the employees. It is equally important that everyone in the
bargaining unit be given the opportunity to express himself.
2. Voluntary Recognition
Art. 250(c). Rights of legitimate labor organizations.

Book V, Rule I, Sec. 1. Definition of terms.

(bbb) "Voluntary Recognition" refers to the process by which a legitimate labor union is recognized by
the employer as the exclusive bargaining representative or agent in a bargaining unit, reported with
the Regional Office in accordance with Rule VII, Section 2 of these Rules.
Book V, Rule VI, Sec. 2. Determination of representation status.

Sec. 2. Determination of representation status; Modes.
The determination of an exclusive bargaining agent shall be through voluntary recognition in cases
where there is only one legitimate labor organization operating within the bargaining unit, or through
certification, run-off or consent election as provided in these Rules.
Book V, Rule VII. Voluntary recognition.

Sec. 1. When and where to file.
In unorganized establishments with only one legitimate labor organization, the employer may
voluntarily recognize the representation status of such a union. Within thirty (30) days from such
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recognition, the employer and union shall submit a notice of voluntary recognition with the Regional
Office which issued the recognized labor union's certificate of registration or certificate of creation of a
chartered local.
Sec. 2. Requirements for voluntary recognition.

The notice of voluntary recognition shall be accompanied by the original copy and two (2) duplicate
copies of the following documents:
(a) a joint statement under oath of voluntary recognition attesting to the fact of voluntary recognition;
(b) certificate of posting of the joint statement of voluntary recognition for fifteen (15) consecutive
days in at least two (2) conspicuous places in the establishment or bargaining unit where the union
seeks to operate;
(c) the approximate number of employees in the bargaining unit, accompanied by the names of those
who support the voluntary recognition comprising at least a majority of the members of the bargaining
unit; and
(d) a statement that the labor union is the only legitimate labor organization operating within the
bargaining unit.
All accompanying documents of the notice for voluntary recognition shall be certified under oath by
the employer representative and president of the recognized labor union.
Sec. 3. Action on the Notice.

Where the notice of voluntary recognition is sufficient in form, number and substance and where there
is no other registered labor union operating within the bargaining unit concerned, the Regional Office,
through the Labor Relations Division shall, within ten (10) days from receipt of the notice, record the
fact of voluntary recognition in its roster of legitimate labor unions and notify the labor union
concerned.
Where the notice of voluntary recognition is insufficient in form, number and substance, the Regional
Office shall, within the same period, notify the labor union of its findings and advise it to comply with
the necessary requirements. Where neither the employer nor the labor union failed to complete the
requirements for voluntary recognition under Section 2 of this Rule within thirty (30) days from receipt
of the advisory, the Regional Office shall return the notice for voluntary recognition together with all
its accompanying documents without prejudice to its re-submission.
Sec. 4. Effect of recording of fact of voluntary recognition.

From the time of recording of voluntary recognition, the recognized labor union shall enjoy the rights,
privileges and obligations of an existing bargaining agent of all the employees in the bargaining unit.
Entry of voluntary recognition shall bar the filing of a petition for certification election by any labor
organization for a period of one (1) year from the date of entry of voluntary recognition. Upon
expiration of this one-year period, any legitimate labor organization may file a petition for certification
election in the same bargaining unit represented by the voluntarily recognized union, unless a
collective bargaining agreement between the employer and voluntarily recognized labor union was
executed and registered with the Regional Office in accordance with Rule XVII of these Rules.
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 Sta. Lucia East Commercial Corp. v. Secretary of Labor (2009)
Company: Sta. Lucia East Commercial Corp. (SLECC)
Union: CLUP-SLECCWA, SMSLEC
Issue: WON voluntary recognition of SMSLEC by SLECC is valid.
Held. No, it can only be done in unorganized establishments.
Ratio: the employer may voluntarily recognize the representation status of a union in unorganized
establishments. SLECC was not an unorganized establishment when it voluntarily recognized SMSLEC
as its exclusive bargaining representative. Thus, SLECC’s voluntary recognition of SMSLEC and the
subsequent negotiations and resulting registration of a CBA executed by SLECC and SMSLEC are void
and cannot bar CLUP-SLECCWA’s present petition for certification election. In petitions for certification
election, the employer is a mere bystander and cannot oppose the petition or appeal the med-arbiter’s
decision.
3. Elections
a) Certification Election
Art. 267. 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.
Book V, Rule I, Sec. 1. (h) (ll) Definition of terms.

(h) "Certification Election" or "Consent Election" refers to the process of determining through secret
ballot the sole and exclusive representative of the employees in an appropriate bargaining unit for
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purposes of collective bargaining or negotiation. A certification election is ordered by the Department,
while a consent election is voluntarily agreed upon by the parties, with or without the intervention by
the Department.
(ll) "Organized Establishment" refers to an enterprise where there exists a recognized or certified sole
and exclusive bargaining agent.
Book V, Rule VIII. Certification election.

Sec. 1. Who may file.
Any legitimate labor organization, including a national union or federation that has issued a charter
certificate to its local/chapter or the local/chapter itself, may file a petition for certification election.
A national union or federation filing a petition in behalf of its local/chapter shall not be required to
disclose the names of the local/chapter’s officers and members, but shall attach to the petition the
charter certificate it issued to its local/chapter.
When requested to bargain collectively, an employer may file a petition for certification election with
the Regional Office. If there is no existing registered collective bargaining agreement in the bargaining
unit, the Regional Office shall, after hearing, order the conduct of a certification election.
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 Med-Arbiter act favorably on the petition.
Any employee has the right to intervene for the protection of his individual right.

A petition for certification election shall be filed with the Regional Office which issued the petitioning
union's certificate of registration/certificate of creation of chartered local.
The petition shall be heard and resolved by the Med-Arbiter.
Where two or more petitions involving the same bargaining unit are filed in one Regional Office, the
same shall be automatically consolidated with the Med-Arbiter who first acquired jurisdiction. Where
the petitions are filed in different Regional Offices, the Regional Office in which the petition was first
filed shall exclude all others; in which case, the latter shall indorse the petition to the former for
consolidation.
Sec. 3. When to file.

A petition for certification election may be filed anytime, except:
(a) when a fact of voluntary recognition has been entered or a valid certification, consent or run-off
election has been conducted within the bargaining unit within one (1) year prior to the filing of the
petition for certification election. Where an appeal has been filed from the order of the Med-Arbiter
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certifying the results of the election, the running of the one year period shall be suspended until the
decision on the appeal has become final and executory;
(b) when the duly certified union has commenced and sustained negotiations in good faith with the
employer in accordance with Article 250 of the Labor Code within the one year period referred to in
the immediately preceding paragraph;
(c) when a bargaining deadlock to which an incumbent or certified bargaining agent is a party had been
submitted to conciliation or arbitration or had become the subject of a valid notice of strike or lockout;
(d) when a collective bargaining agreement between the employer and a duly recognized or certified
bargaining agent has been registered in accordance with Article 231 of the Labor Code. Where such
collective bargaining agreement is registered, the petition may be filed only within sixty (60) days prior
to its expiry.
Sec. 4. Form and contents of petition.

The petition shall be in writing, verified under oath by the president of petitioning labor organization.
Where the petition is filed by a federation or national union, it shall verified under oath by the
president or its duly authorized representative. The petition shall contain the following:
(a) the name of petitioner, its address, and affiliation if appropriate, the date and number of its
certificate of registration. If the petition is filed by a federation or national union, the national
president or his/her duly authorized representative shall certify under oath as to the existence of its
local/chapter in the establishment and attaching thereto the charter certificate or a certified true copy
thereof. It the petition is filed by a local/chapter it shall attach its charter certificate or a certified true
copy thereof;
(b) the name, address and nature of employer's business;
(c) the description of the bargaining unit;
(d) the approximate number of employees in the bargaining unit;
(e) the names and addresses of other legitimate labor unions in the bargaining unit;
(f) a statement indicating any of the following circumstances:
1) that the bargaining unit is unorganized or that there is no registered collective bargaining agreement
covering the employees in the bargaining unit;
2) if there exists a duly registered collective bargaining agreement, that the petition is filed within the
sixty-day freedom period of such agreement; or
3) if another union had been previously recognized voluntarily or certified in a valid certification,
consent or run-off election, that the petition is filed outside the one-year period from entry of
voluntary recognition or conduct of certification or run-off election and no appeal is pending thereon.
(g) in an organized establishment, the signature of at least twenty-five percent (25%) of all employees
in the appropriate bargaining unit shall be attached to the petition at the time of its filing; and
(h) other relevant facts.
Sec. 5. Raffle of the case.

The Regional Director or his/her duly authorized representative upon receipt of the petition shall
immediately assign it by raffle to a Mediator-Arbiter. The raffle shall be done in the presence of the
petitioner if the latter so desires.
Sec. 6. Notice of preliminary conference.
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The petition shall immediately be transmitted to the assigned Mediator-Arbiter who shall immediately
prepare and serve a notice of preliminary conference to be held within ten (10) working days from the
Mediator-Arbiter’s receipt of the petition.
The service of the petition to the employer and of the notice of preliminary conference to the
petitioner and the incumbent bargaining agent (if any) shall be made within three (3) working days
from the Mediator-Arbiter’s receipt of the petition. The service may be made by personal service, by
registered mail or by courier service.
A copy of the petition and of the notice of preliminary conference shall be posted within the same
three (3) day period in at least two conspicuous places in the establishment. In multiple-location
workplaces, the posting shall be made in at least two conspicuous places in every location.
Sec. 7. Forced Intervenor.

The incumbent bargaining agent shall automatically be one of the automatically be one of the choices
in the certification election as forced intervenor.
Sec. 8. Motion for Intervention.

When a petition for certification election was filed in an organized establishment, any legitimate labor
union other than the incumbent bargaining agent operating within the bargaining unit may file a
motion for intervention with the Med-Arbiter during the freedom period of the collective bargaining
agreement. The form and contents of the motion shall be the same as that of a petition for
certification election.
In an unorganized establishment, the motion shall be filed at any time prior to the decision of the Med-
Arbiter. The form and contents of the motion shall likewise be the same as that of a petition for
certification election. The motion for intervention shall be resolved in the same decision issued in the
petition for certification election.
Sec. 9. Preliminary Conference; Hearing.

The Med-Arbiter shall conduct a preliminary conference and hearing within ten (10) days from receipt
of the petition to determine the following:
(a) the bargaining unit to be represented;

(b) contending labor unions;
(c) possibility of a consent election;
(d) existence of any of the bars to certification election under Section 3 of this Rule; and
(e) such other matters as may be relevant for the final disposition of the case.
Sec. 10. Consent Election; Agreement.

The contending unions may agree to the holding of an election, in which case it shall be called a
consent election. The Mediator-Arbiter shall forthwith call for the consent election, reflection the
parties’ agreement and the call in the minutes of the conference.
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The Mediator-Arbiter shall immediately forward the records of the petition to the Regional Director or
his/her authorized representative for the determination of the Election Officer who shall be chosen by
raffle in the presence of representatives of the contending unions if they so desire.
The first pre-election conference shall be scheduled within ten (10) days from the date of the consent
election agreement. Subsequent conferences may be called to expedite and facilitate the holding of
the consent election.
To afford an individual employee-voter an informed choice where a local/chapter is the petitioning

union, the local/chapter shall secure its certificate of creation at least five working days before the
date of the consent election.
Sec. 11. Number of Hearings; Pleadings.

If the contending unions fail to agree to a consent election during the preliminary conference, the
Med-Arbiter may conduct as many hearings as he/she may deem necessary, but in no case shall the
conduct thereof exceed fifteen (15) days from the date of the scheduled preliminary
conference/hearing, after which time the petition shall be considered submitted for decision. The
Med-Arbiter shall have control of the proceedings. Postponements or continuances shall be
discouraged.
Within the same 15-day period within which the petition is heard, the contending labor unions may file
such pleadings as they may deem necessary for the immediate resolution of the petition. Extensions of
time shall not be entertained. All motions shall be resolved by the Med-Arbiter in the same order or
decision granting or denying the petition.
Sec. 12. Failure to appear despite notice.

The failure of any party to appear in the hearing(s) when notified or to file its pleadings shall be
deemed a waiver of its right to be heard. The Med-Arbiter, however, when agreed upon by the parties
for meritorious reasons may allow the cancellation of
scheduled hearing(s). The cancellation of any scheduled hearing(s) shall not be used as a basis for
extending the 15-day period within which to terminate the same.
Section 13. Order/Decision on the petition. - Within ten (10) days from the date of the last hearing, the
Mediator-Arbiter shall formally issue a ruling granting or denying the petition, except in organized
establishments where the grant of the petition can only be made after the lapse of the freedom
period.
The ruling for the conduct of a certification election shall state the following:
(a) the name of the employer or establishment;

(b) a description of the bargaining unit;
(c) a statement that none of the grounds for dismissal enumerated in the succeeding paragraph exists;
(d) the names of contending labor unions which shall appear in the following order: the petitioner
unions in the order of the date of filing of their respective petitions; the forced intervenor; and “no
union”;
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(e) to afford an individual employee-voter an informed choice where a local/chapter is one of the
contending unions, a directive to an unregistered local/chapter or a federation/national union
representing an unregistered local/chapter to personally submit to the election officer its certificate of
creation at least five working days before the actual conduct of the certification election. Non-
submission of this requirement as certified by the election officer shall disqualify the local/chapter
from participating in the certification election; and
(f) a directive upon the employer and the contending union(s) to submit within ten (10) days from
receipt of the order, the certified list of employees in the bargaining unit, or where necessary, the
payrolls covering the members of the bargaining unit for the last three (3) months prior to the issuance
of the order.
Sec. 14. Denial of the petition; Grounds.

The Mediator-Arbiter may dismiss the petition on any of the following grounds:
(a) the petitioning union or national union/federation is not listed in the Department’s registry of
legitimate labor unions or that its registration certificate has been cancelled with finality in accordance
with Rule XIV of these Rules;
(b) failure of a local/chapter of national union/federation to submit a duly issued charter certificate
upon filing of the petition for certification election;
(c) filing the petition before or after the freedom period of a duly registered collective bargaining
agreement; provided that the sixty-day period based on the original collective bargaining agreement
shall not be affected by any amendment, extension or renewal of the collective bargaining agreement;
(d) filing of a petition within one (1) year from the date of recording of the voluntary recognition, or
within the same period from a valid certification, consent of run-off election where no appeal on the
results of the certification, consent or run-off election is pending;
(e) where a duly certified union has commenced and sustained negotiations with the employer in
accordance with Article 250 of the Labor Code within the one-year period referred to in Section 14.d of
this Rule, or where there exists a bargaining deadlock which has been submitted to conciliation or
arbitration or has become the subject of a valid notice of strike or lockout where an incumbent or
certified bargaining agent is a party;
(f) in an organized establishment, the failure to submit the twenty-five percent (25%) signature
requirement to support the filing of the petition for certification election;
(g) non-appearance of the petitioner for two consecutive scheduled conferences before the Mediator-
Arbiter despite due notice; and
(h) absence of employer-employee relationship between all the members of the petitioning union and
the establishment where the proposed bargaining unit is sought to be represented.
Sec. 15. Prohibited grounds for the denial/suspension of the petition.

cancellation of the registration of the inion. Said employees are automatically deemed removed from
the list of membership of said unions.
Sec. 16. Ancillary Issues.
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All issues pertaining to the existence of employer-employee relationship, eligibility or mixture in union
membership raised before the Med-Arbiter during the hearing(s) and in the pleadings shall be resolved
in the same order or decision granting or denying the petition for certification election.
All issues pertaining to the validity of the petitioning union's certificate of registration or its legal
personality as a labor organization, validity of registration and execution of collective bargaining
agreements shall be heard and resolved by the Regional Director in an independent petition for
cancellation of its registration and not by the Med-Arbiter in the petition for certification election,
unless the petitioning union is not listed in the Department's roster of legitimate labor organizations or
an existing collective bargaining agreement is not registered with the Department.
Sec. 17. Release of Order/Decision within ten (10) days from the last hearing.
The Med-Arbiter shall release his/her order or decision granting or denying the petition personally to
the parties on an agreed date and time.
Sec. 18. Appeal.

The order granting the conduct of a certification election in an unorganized establishment shall not be
subject to appeal. Any issue arising therefrom may be raised by means of protest on the conduct and
results of the certification election.
The order granting the conduct of a certification election in an organized establishment and the
decision dismissing or denying the petition, whether in an organized or unorganized establishment,
may be appealed to the Office of the Secretary within ten (10) days from receipt thereof.
The appeal shall be verified under oath and shall consist of a memorandum of appeal, specifically
stating the grounds relied upon by the appellant with the supporting arguments and evidence.
Sec. 19. Where to file appeal.

The memorandum of appeal shall be filed in the Regional Office where the petition originated, copy
furnished the contending unions and the employer, as the case may be. Within twenty-four (24) hours
from receipt of the appeal, the Regional Director shall cause the transmittal thereof together with the
entire records of the case to the Office of the Secretary.
Sec. 20. Finality of Order/Decision.

Where no appeal is filed within the ten-day period, the Med-Arbiter shall enter the finality of the
order/decision in the records of the case and cause the transmittal of the records of the petition to the
Regional Director.
Sec. 21. Period to Reply.

A reply to the appeal may be filed by any party to the petition within ten (10) days from receipt of the
memorandum of appeal. The reply shall be filed directly with the Office of the Secretary.
Sec. 22. Decision of the Secretary.

The Secretary shall have fifteen (15) days from receipt of the entire records of the petition within
which to decide the appeal. The filing of the memorandum of appeal from the order or decision of the
Med-Arbiter stays the holding of any certification election. The decision of the Secretary shall become
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final and executory after ten (10) days from receipt thereof by the parties. No motion for
reconsideration of the decision shall be entertained.
Sec. 23. Transmittal of records to the Regional Office.

Within forty-eight (48) hours from notice of receipt of decision by the parties and finality of the
decision, the entire records of the case shall be remanded to the Regional Office of origin for
implementation. Implementation of the decision shall not
be stayed unless restrained by the appropriate court.
Sec. 24. Effects of consent election.

Where a petition for certification election had been filed, and upon the intercession of the Med-
Arbiter, the parties agree to hold a consent election, the results thereof shall constitute a bar to the
holding of a certification election for one (1) year from the holding of such consent election. Where an
appeal has been filed from the results of the consent election, the running of the one-year period shall
be suspended until the decision on appeal has become final and executory.
Where no petition for certification election was filed but the parties themselves agreed to hold a
consent election with the intercession of the Regional Office, the results thereof shall constitute a bar
to another petition for certification election.
Sec. 25. Effects of early agreements.

The representation case shall not be adversely affected by a collective bargaining agreement registered
before or during the last sixty (60) days of a subsisting agreement or during the pendency of the
representation case.
Sec. 26. Non-availability of Med-Arbiter.

Where there is no Med-Arbiter available in the Regional Office by reason of vacancy, prolonged
absence, or excessive workload as determined by the Regional Director, he/she shall transmit the
entire records of the case to the Bureau, which shall within forty-eight (48) hours from receipt assign
the case to any Med-Arbiter from any of the Regional Offices or from the
Bureau.
Book V, Rule IX. Conduct of Certification Election.

Within twenty-four (24) hours from receipt of the notice of entry of final judgment granting the
conduct of a certification election, the Regional Director shall cause the raffle of the case to an Election
Officer who shall have control of the pre-election conference and election proceedings.
Sec. 2. Pre-election conference.

Within twenty-four (24) hours from receipt of the assignment for the conduct of a certification
election, the Election Officer shall cause the issuance of notice of pre-election conference upon the
contending unions and the employer, which shall be scheduled within ten (10) days from receipt of the
assignment. The employer shall be required to submit the certified list of employees in the bargaining
unit, or where necessary, the payrolls covering the members of the bargaining unit at the time of the
filing of the petition.
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Sec. 3. Waiver of right to be heard.
Failure of any party to appear during the pre-election conference despite notice shall be considered as
a waiver of its right to be present and to question or object to any of the agreements reached in the
pre-election conference. However, this shall not deprive the non-appearing party of the right to be
furnished notices of and to attend subsequent pre-election conferences.
Sec. 4. Minutes of pre-election conference.

The Election Officer shall keep the minutes of matters raised and agreed upon during the pre-election
conference. The parties shall acknowledge the completeness and correctness of the entries in the
minutes by affixing their signatures thereon. Where
any of the parties refuse to sign the minutes, the Election Officer shall note such fact in the minutes,
including the reason for refusal to sign the same. In all cases, the parties shall be furnished a copy of
the minutes.
The pre-election conference shall be completed within thirty (30) days from the date of the first
hearing.
Sec. 5. Qualification of voters; inclusion-exclusion.

All employees who are members of the appropriate bargaining unit sought to be represented by the
petitioner at the time of the issuance of the order granting the conduct of a certification election shall
be eligible to vote. An employee who has been dismissed from work but has contested the legality of
the dismissal in a forum of appropriate jurisdiction at the time of the issuance of the order for the
conduct of a certification election shall be considered a qualified voter, unless his/her dismissal was
declared valid in a final judgment at the time of the conduct of the certification election.
In case of disagreement over the voters' list or over the eligibility of voters, all contested voters shall be
allowed to vote. But their votes shall be segregated and sealed in individual envelopes in accordance
with Sections 10 and 11 of this Rule.
Sec. 6. Posting of Notices.

The Election Officer shall cause the posting of notice of election at least ten (10) days before the actual
date of the election in two (2) most conspicuous places in the company premises. The notice shall
contain:
(a) the date and time of the election;

(b) names of all contending unions;
(c) the description of the bargaining unit and the list of eligible and challenged voters.
The posting of the notice of election, the information required to be included therein and the duration
of
posting cannot be waived by the contending unions or the employer.
Sec. 7. Secrecy and sanctity of the ballot.

To ensure secrecy of the ballot, the Election Officer, together with the authorized representatives of
the contending unions and the employer, shall before the start of the actual voting, inspect the polling
place, the ballot boxes and the polling booths.
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Sec. 8. Preparation of ballots.
The Election Officer shall prepare the ballots in English and Filipino or the local dialect. The number of
ballots should correspond to the number of voters in the bargaining unit plus a reasonable number of
extra ballots for contingencies. All ballots shall be signed at the back by the Election Officer and an
authorized representative of each of the contending unions. A party who refuses or fails to sign the
ballots waives its right to do so and the Election Officer shall enter the fact of refusal and the reason
therefor in the records of the case.
Sec. 9. Marking of votes.

The voter must put a cross ( x ) or check ( ü) mark in the square opposite the name of the union of his
choice or "No Union" if he/she does not want to be represented by any union.
If a ballot is torn, defaced or left unfilled in such a manner as to create doubt or confusion or to identify
the voter, it shall be considered spoiled. If the voter inadvertently spoils a ballot, he/she shall return it
to the Election Officer who shall destroy it and give him/her another ballot.
Sec. 10. Procedure in the challenge of votes.

The ballot of the voter who has been properly challenged during the pre-election conferences, shall be
placed in an envelope which shall be sealed by the Election Officer in the presence of the voter and the
representatives of the contending unions. The Election Officer shall indicate on the envelope the
voter’s name, the union challenging the voter, and the ground for the challenge. The sealed envelope
shall then be signed by the Election Officer and the representatives of the contending unions. The
Election Officer shall note all challenges in the minutes of the election proceedings and shall have
custody of all envelopes containing the challenged votes. The envelopes shall be opened and the
question of eligibility shall be passed upon by the Mediator-Arbiter only if the number of segregated
votes will materially alter the results of the election.
Sec. 11. On-the-spot questions.

The Election Officer shall rule on any question relating to and raised during the conduct of the election.
In no case, however, shall the election officer rule on any of the grounds for challenge specified in the
immediately preceding section.
Sec. 12. Protest; when perfected.

Any party-in-interest may file a protest based on the conduct or mechanics of the election. Such
protests shall be recorded in the minutes of the election proceedings. Protests not so raised are
deemed waived.
The protesting party must formalize its protest with the Med-Arbiter, with specific grounds, arguments
and evidence, within five (5) days after the close of the election proceedings. If not recorded in the
minutes and formalized within the prescribed period, the protest shall be deemed dropped.
Sec. 13. Canvassing of votes.

The votes shall be counted and tabulated by the Election Officer in the presence of the representatives
of the contending unions. Upon completion of the canvass, the Election Officer shall give each
representative a copy of the minutes of the election proceedings and results of the election. The
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ballots and the tally sheets shall be sealed in an envelope and signed by the Election Officer and the
representatives of the contending unions and transmitted to the Med-Arbiter, together with the
minutes and results of the election, within twenty-four (24) hours from the completion of the canvass.
Where the election is conducted in more than one region, consolidation of results shall be made within
fifteen (15) days from the conduct thereof.
Sec. 14. Conduct of election and canvass of votes.

The election precincts shall open and close on the date and time agreed upon during the pre-election
conference. The opening and canvass of votes shall proceed immediately after the precincts have
closed. Failure of the representative/s of the contending unions to appear during the election
proceedings and canvass of votes shall be considered a waiver of the right to be present and to
question the conduct thereof.
Sec. 15. Certification of Collective Bargaining Agent.

The union which obtained a majority of the valid votes cast shall be certified as the sole and exclusive
bargaining agent of all the employees in the appropriate bargaining unit within five (5) days from the
day of the election, provided no protest is recorded in the minutes of the election.
Sec. 16. Failure of election.

Where the number of votes cast in a certification or consent election is less than the majority of the
number of eligible voters and there are no material challenged votes, the Election Officer shall declare
a failure of election in the minutes of the election proceedings.
Sec. 17. Effect of failure of election.

A failure of election shall not bar the filing of a motion for the immediate holding of another
certification or consent election within six (6) months from date of declaration of failure of election.
Sec. 18. Action on the motion.

Within twenty-four (24) hours from receipt of the motion, the Election Officer shall immediately
schedule the conduct of another certification or consent election within fifteen (15) days from receipt
of the motion and cause the posting of the notice of certification election at least ten (10) days prior to
the scheduled date of election in two (2) most conspicuous places in the establishment. The same
guidelines and list of voters shall be used in the election.
Sec. 19. Proclamation and certification of the result of the election.

Within twenty-four (24) hours from final canvass of votes, there being a valid election, the Election
Officer shall transmit the
records of the case to the Med-Arbiter who shall, within the same period from receipt of the minutes
and results of election, issue an order proclaiming the results of the election and certifying the union
which obtained a majority of the valid votes cast as the sole and exclusive bargaining agent in the
subject bargaining unit, under any of the following conditions:
(a) no protest was filed or, even if one was filed, the same was not perfected within the five-day period
for perfection of the protest;
(b) no challenge or eligibility issue was raised or, even if one was raised, the resolution of the same will
not materially change the results of the elections.
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The winning union shall have the rights, privileges and obligations of a duly certified collective
bargaining agent from the time the certification is issued.
Where majority of the valid votes cast results in "No Union" obtaining the majority, the Med-Arbiter
shall declare such fact in the order
Sec. 20. Appeal; finality of decision.

The decision of the Med-Arbiter may be appealed to the Secretary within ten (10) days from receipt by
the parties of a copy thereof.
The appeal shall be under oath and shall consist of a memorandum of appeal, specifically stating the
grounds relied upon by the appellant with the supporting arguments and evidence.
Where no appeal is filed within the ten-day period, the order/decision shall become final and executor
and the Med-Arbiter shall enter this fact into the records of the case.
Sec. 21. Where to file appeal.

Sec. 22. Period to reply.

Sec. 23. Decision of the Secretary.

The Secretary shall have fifteen (15) days from receipt of the entire records or the petition within
which to decide the appeal.
The decision of the Secretary shall become final and executor after ten (10) days from receipt thereof
by the parties. No motion for reconsideration of the decision shall be entertained.
Sec. 24. Transmittal of records to the Regional Office.

Within forty-eight (48) hours from the notice of receipt of decision by the parties and finality of the
decision, the entire records of the case shall be remanded to the Regional Office of origin for
implementation. Implementation of the decision shall not be stayed unless restrained by the
appropriate court.
Book V, Rule X. Run-off Elections.

Sec. 1. When proper.
When an election which provides for three (3) or more choices results in none of the contending
unions receiving a majority of the valid votes cast, and there are no objections or challenges which if
sustained can materially alter the results, the Election Officer shall motu propio conduct a run-off
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election within ten (10) days from the close of the election proceedings 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 (50%) percent of the number of votes cast.
"No Union" shall not be a choice in the run-off election.
Notice of run-off elections shall be posted by the Election Officer at least five (5) days before the actual
date of run-off election.
Sec. 2. Qualification of voters.

The same voters' list used in the certification election shall be used in the run-off election. The ballots
in the run-off election shall provide as choices the unions receiving the highest and second highest
number of the votes cast. The labor union receiving the greater number of valid votes cast shall be
certified as the winner, subject to Section 20, Rule IX.
b) Consent Election
Book V, Rule I, Sec. 1. (h) (supra on page 91)
Book V, Rule VIII, Sec. 10, 11, 23. (supra on page 92)
c) Run-Off Election
Art. 267, par. 1, last sentence. (supra on page 91)
Book V, Rule I, Sec. 1(ss). Definition of terms.

(ss) "Run-off Election" refers to an election between the labor unions receiving the two (2) highest
number of votes in a certification or consent election with three (3) or more choices, where such a
certified or consent results in none of the three (3) or more choices receiving the majority of the valid
votes cast; provided that the total number of votes for all contending unions is at least fifty percent
(50%) of the number of votes cast.
Book V, Rule X. (supra on page 102)
4. Venue of Petition
Book V, Rule VIII, Sec. 2 (supra on page 92)
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Book V, Rule VII, Sec. 2 (supra on page 89)
 Cruzvale Inc. vs Laguesma (1994)

Company: Cruzvale Inc.
Union: Union of Filipino Workers
Issue: WON the PCE was properly filed in DOLE Regional Office No. IV, instead of the regional office
which has jurisdiction over the principal office of the employer.
Held: Yes, it was properly filed.
Ratio: The word "jurisdiction" as used in refers to the venue where the petition for certification must
be filed. Unlike jurisdiction, which implies the power of the court to decide a case, venue merely refers
to the place where the action shall be. Venue touches more the convenience of the parties rather than
the substance of the case. Section 1, Rule V, Book V refers only to cases where the place of work of the
employees and the place of the principal office of the employer are within the same territorial
jurisdiction of the Regional Office where the PCE is filed. The said provision does not apply to the filing
of PCE’s where the place of work of the employees and the place of principal office of the employer are
located within the territorial jurisdictions of different regional offices. In the Nestle case: “The worker,
being the economically-disadvantaged party whether as complainant, petitioner or respondent, as the
case may be, the nearest governmental machinery to settle a labor dispute must be placed at his
immediate disposal and the employer must in no case be allowed a choice in favor of another
competent agency sitting in another place to the inconvenience of the worker.”
C. Certification Election: Process
Book V, Rule VIII. (supra on page 92)
Book V, Rule IX. (supra on page on page 9898)
Book V, Rule X. (supra on page 102)
1. The Union as Initiating Party
Art. 250 (b). Rights of legitimate labor organizations.

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Book V, Rule VIII, Sec. 1. (supra on page 92)
a) Organized Establishment
Art. 263. 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.
Book V, Rule 1, Sec. 1 (ll)

"Organized Establishment" refers to an enterprise where there exists a recognized or certified sole and
exclusive bargaining agent.
1) Petition Before Freedom Election Period
Book V, Rule VIII, Sec. 3 (d), Sec. 13 par. 1 (supra on page 92)
 Atlantic Gulf and Pacific Co. Manila, Inc. v. Laguesma (1992)

Company: Atlantic Gulf and Pacific Company of Manila
Union: URFA, LAKAS-NFL
Issue: WON PCE filed by LAKAS-NFL to be certified as the SEBA of non-regular project employees
should be granted in view of the concerned employees’ regularization.
Held: No, bargaining unit already ceased to exist.
Ratio: The regularization of all the regular project employees with at least one year of service and the
subsequent membership of said employees with the URFA mean that the alleged regular project
employees whom respondent LAKAS-NFL seeks to represent are, in fact, regular employees by
contemplation of law and included in the appropriate bargaining unit of said CBA consequently, the
bargaining unit which respondent LAKAS-NFL seeks to represent has already ceased to exist.
2) Petition Beyond Freedom Period
 National Congress of Union in Sugar Industry v. Ferrer-Calleja (1992)

Company: Dacongcogon
Union: NFSW-FGT-KMU (randf), LS-NFL (project ee’s)
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Issue: WON a petition for certification election may be filed after the 60-day freedom period?
Held: No. Contract Bar Rule!
Ratio: This rule simply provides that a petition for certification election or a motion for intervention can
only be entertained within sixty days prior to the expiry date of an existing collective bargaining
agreement. Otherwise put, the rule prohibits the filing of a petition for certification election during the
existence of a collective bargaining agreement except within the freedom period, as it is called, when
the said agreement is about to expire. The purpose, obviously, is to ensure stability in the relationships
of the workers and the management by preventing frequent modifications of any collective bargaining
agreement earlier entered into by them in good faith and for the stipulated original period. As to
contention that there is no new CBA yet: “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." Despite the lapse of the formal
effectivity of the CBA the law still considers the same as continuing in force and effect until a new CBA
shall have been validly executed. Hence, the contract bar rule still applies.
3) Filing Party/Misrepresentation by Union Officers
 DHL Philippines Corporation United Rank and File Association – Federation of Free Workers v. Buklod
ng Manggagawa ng DHL Phils. Corp. (2004)
Company: DHL Phil. Corp.
Union: DHL-URFA-FFW, BUKLOD
Issue: WON PCE filed by BUKLOD should not be granted in view of the 1-yr bar rule
Held: Certification election!
Ratio: When the med-arbiter admitted and gave due course to Petition for nullification of the election
proceedings, the election officer should have deferred issuing the Certification of the results thereof.
Having been formed just after such exercise by the defrauded employees who were former members
of DHL-URFA-FFW, BUKLOD could not have reasonably filed its protest within five days from the close
of the election proceedings. The circumstances in the present case show that the employees did not
sleep on their rights. Hence, their failure to follow strictly the procedural technicalities regarding the
period for filing their protest should not be taken against them. Mere technicalities should not be
allowed to prevail over the welfare of the workers. What is essential is that they be accorded an
opportunity to determine freely and intelligently which labor organization shall act on their
behalf. Having been denied this opportunity by the betrayal committed by petitioner’s officers in the
present case, the employees were prevented from making an intelligent and independent choice.
4) Forced Intervention/Motion for Intervention
Book V, Rule VIII, Sec. 7, 8 (supra on page 92)
 Phil. Association of Free Labor Union v. Calleja, 169 SCRA 491

(1989)
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b) Unorganized Establishment
Art. 268. 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 a legitimate labor
organization.
c) Filing of Petition
1) Form of Petition
 National Mines and Allied Workers union v. Sec. of Labor, 227

SCRA 821 (1993)
2) Substantial Support
Art. 256. Non-abridgment of right to self-organization.

purpose for their mutual aid and protection, subject to the provisions of Article 264 of this Code.
Book V, Rule VIII, Sec. 4(g), 14(e) (supra on page 92)
 Port Workers Union of the Phil v Laguesma (1992)

Union/s: Associated Port Checkers and Workers Union, Sandigan ng Manggagagwa sa Daungan, Port
Employees Association and Labor Union, Port Workers Union of the Philippines
Issue:
1. W/N the 25% consent signatures required to accompany the PCE be filed at the same time. NO, it
may be filed within a reasonable period after the PCE is filed.
2. W/N the 25% consent signatures is still required in a Motion for Intervention. NO, Motion for
Intervention is already viable because the principal petitions had already complied with the
requirements.
Doctrine:
1. “…administrative rule requiring the simultaneous submission of the 25% consent signatures
upon the filing of petition for certification election should not be strictly applied to frustrate the
determination of the legitimate representative of the workers. Significantly, the requirement in
the rule is not found in Article 256, the law it seeks to implement. This is all the more reason
why the regulation should at best be given only a directory effect. Accordingly, we hold that the
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mere filing of a petition for certification election within the freedom period is sufficient basis
for the issuance of an order for the holding of a certification election, subject to the
submission of the consent signatures within a reasonable period from such filing.”
“…requisite written consent of at least 20% of the workers in the bargaining unit applies to petitioners
for certification election only and not to motions for intervention. . . . As long as the motion for
intervention has been properly and timely filed and the intervention would not cause any injustice to
anyone, it should not be denied and this is so even if the eventual purpose of the Motion for
Intervention is to participate in the Certification Election. After all, the original applicant had already
met the 20% requirement.”
d) Effect of Members’ Retraction on Petition
 Eagle Ridge Golf & Country Club v CA & EREU (2010)

Company: Eagle Ridge Golf & Country Club
Union/s: ER Employees Union
Issue: W/N the Affidavits of retraction affect the PCE. NO, the affidavits of retraction does not retroact
to the time of the application of registration or the organizational meeting. Furthermore, withdrawal of
membership after PCE is deemed involuntary (unless otherwise proven).
Doctrine: “Prior to their withdrawal, the six employees in question were bona fide union members.
More so, they never disputed affixing their signatures beside their handwritten names during the
organizational meetings. While they alleged that they did not know what they were signing, it bears
stressing that their affidavits of retraction were not re-affirmed during the hearings of the instant case
rendering them of little, if any, evidentiary value… We have in precedent cases said that the
employees’ withdrawal from a labor union made before the filing of the petition for certification
election is presumed voluntary, while withdrawal after the filing of such petition is considered to be
involuntary and does not affect the same. Now then, if a withdrawal from union membership done
after a petition for certification election has been filed does not vitiate such petition, is it not but
logical to assume that such withdrawal cannot work to nullify the registration of the union?”
2. The Employer as Initiating Party
Art. 269. When an employer may file petition.

When requested to bargain collectively, an employer may petition the Bureau for an election. If there
is no existing certified collective bargaining agreement in the unit, the Bureau shall, after hearing,
order a certification election.
All certification cases shall be decided within twenty (20) working days.
The Bureau shall conduct a certification election within twenty (20) days in accordance with the rules
and regulations prescribed by the Secretary of Labor.
Art. 270. 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:
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(1) being notified or informed of petitions of such nature; and
(2) submitting the list of employees during the pre-election conference should the Med-Arbiter act
favorably on the petition.
Book V, Rule VIII, Sec. 1, par. 2. (supra on page 92)
 SMC Quarry Workers Union v Titan Megabags Industrial Corporation (2004)

Company: Titan Megabags Industrial Corporation
Union/s: SMC Quarry Workers Union
Issue: W/N the employer may file for a motion to dismiss a PCE filed by the union. No, because the
employer is mere bystander.
Doctrine: ““in certification elections, the employer is a bystander, it has no right or material interest to
assail the certification election… Thus, when a petition for certification election is filed by a legitimate
labor organization, it is good policy of the employer not to have any participation or partisan interest in
the choice of the bargaining representative. While employers may rightfully be notified or informed of
petitions of such nature, they should not, however, be considered parties thereto with an inalienable
right to oppose it ”
 Notre Dame v Laguesma (2004)

Company: Notre Dame of Greater Manila
Union/s: Notre Dame of Greater Manila Teachers and Employees Union
Issue: W/N the employer may question the election considering that the certification election was held
during the pendency of the employer’s appeal of the the med-arbitrer’s notation on the Motion to
Include the Probationary and Substitute Employees in the List of Qualified Voters. No, because the
employer is a mere by-stander.
Doctrine: “More important, unless it filed a petition for a certification election pursuant to Article 258
of the Labor Code,the employer has no standing to question the election, which is the sole concern of
the workers. The Labor Code states that any party to an election may appeal the decision of the med-
arbiter. Petitioner was not such a party to the proceedings, but a stranger which had no right to
interfere therein… Clearly, petitioner did not and will not sustain direct injury as a result of the non-
inclusion of some of its employees in the certification election. Hence, it does not have any material
interest in this case. Only the employees themselves, being the real parties-in-interest,[16] may
question their removal from the voters’ list.”
3. Responsible Agency
Art. 232. Bureau of Labor Relations.

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agreement of the parties.

Art. 271. Appeal from certification election orders.

Any party to an election may appeal the order or results of the election as determined by the Med-
Arbiter directly to the Secretary of Labor and Employment on the ground that the rules and regulations
or parts thereof established by the Secretary of Labor and Employment for the conduct of the election
have been violated. Such appeal shall be decided within fifteen (15) calendar days.
Book V, Rule VIII, Sec. 13-15. (supra on page 92)
4. Nature of Proceeding/Effect of Private Agreement
 PLUM Federation of Industrial and Agrarian Workers v Noriel (1982)

Company: Manila Jockey Club Inc.
Union/s: PLUM Federation of Industrial and Agrarian Workers, Manila Jockey Club Race Day Operation
Employees Labor Union - PTGWO
Issue: W/N the “No Union Raiding” Clause of the “Code of Ethics” adopted by the members of the
TUCP wherein both unions are members are binding and will serve as a BAR to a PCE. No, the private
agreement is void for being violative of the workers protection to labor and freedom of peaceful
assembly and association guaranteed by the Constitution.
Doctrine: “Certification election 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 win of the
maj•rity if given expression in an honest election with freedom on the part of the voters to make their
choice, is controlling. Protection to labor and freedom of peaceful assembly and association are
guaranteed by the Constitution… However, in the case at bar, instead of ordering an election,
respondent Director dismissed the appeal of PLUM based on the decision of the TUCP, which the Court
considers an impairment of the freedom of the workers to voice out their choice of the union to
represent them. If there is any doubt as to the required number having met, there would be no better
way than the holding of a certification election to ascertain which union really commands the
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allegiance of the rank-and-file employees. 5 If the desired goal is for the execution of a collective
bargaining contract to protect the workers, then certification election is the most appropriate means
to attain said end.”
 Port Workers Union of the Phil v Laguesma (1992)

Union/s: Associated Port Checkers and Workers Union, Sandigan ng Manggagagwa sa Daungan, Port
Employees Association and Labor Union, Port Workers Union of the Philippines
Issue: W/N the CBA entered by the APCWU during the pendency of the representation issue (PCE
proceedings) which was ratified by the majority of the employees bind the employees. No, since the
CBA negotiations ensued during the pendency of the representation issue, the contract bar rule does
not apply. Furthermore, there is no showing that the ratification of the majority equates to the
reaffirmation of their membership to the SEBA (APCWU).
Doctrine: “Even Tupas did not say that the mere ratification of the CBA by the majority of the workers
signified their affirmation of membership in the negotiating union. That case required, first,
ratification of the CBA, the second, affirmation of membership in the negotiating union. The second
requirement has not been established in the case at bar as the record does not show that the majority
of the workers, besides ratifying the new CBA, have also formally affiliated with APCWU… As the new
CBA was entered into at the time when the representation case was still pending, it follows that it
cannot be recognized as the final agreement between the ICTSI and its workers… The certification
election is the best method of determining the will of the workers on the crucial question of who shall
represent them in their negotiations with the management for a collective bargaining agreement that
will best protect and promote their interests.“
5. Process and Procedure
a) Preliminary Conference; Hearing
Book V, Rule VIII, Section 9. Preliminary Conference; Hearing.

The Med-Arbiter shall conduct a preliminary
conference and hearing within ten (10) days from receipt of the petition to determine the following:
(a) the bargaining unit to be represented;
(b) contending labor unions;
(c) possibility of a consent election;
(d) existence of any of the bars to certification election under Section 3 of this Rule; and
(e) such other matters as may be relevant for the final disposition of the case.
b) Consent Election; Agreement
Book V, Rule VIII, Section 10. Consent Election; Agreement.

In case the contending unions agree to a consent election, the Med-Arbiter shall not issue a formal
order calling for the conduct of certification election, but shall enter the fact of the agreement in the
minutes of the hearing.
The minutes of the hearing shall be signed by the parties and attested to by the Med-Arbiter. The Med-
Arbiter shall, immediately thereafter, forward the records of the petition to the Regional Director or
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his/her authorized representative for the determination of the Election Officer by the contending
unions through raffle. The first pre-election conference shall be scheduled within ten (10) days from
the date of entry of agreement to conduct consent election.
c) Order/Decision on the Petition
Book V, Rule VIII, Sec. 13. Order/Decision on the petition.

Within ten (10) days from the date of the last hearing, the Mediator-Arbiter shall formally issue a ruling
granting or denying the petition, except in organized establishments where the grant of the petition
can only be made after the lapse of the freedom period.
The ruling for the conduct of a certification election shall state the following:
(a) the name of the employer or establishment;

(b) a description of the bargaining unit;
(c) a statement that none of the grounds for dismissal enumerated in the succeeding paragraph exists;
(d) the names of contending labor unions which shall appear in the following order: the petitioner
unions in the order of the date of filing of their respective petitions; the forced intervenor; and “no
union”;
(e) to afford an individual employee-voter an informed choice where a local/chapter is one of the
contending unions, a directive to an unregistered local/chapter or a federation/national union
representing an unregistered local/chapter to personally submit to the election officer its certificate of
creation at least five working days before the actual conduct of the certification election. Non-
submission of this requirement as certified by the election officer shall disqualify the local/chapter
from participating in the certification election; and
(f) a directive upon the employer and the contending union(s) to submit within ten (10) days from
receipt of the order, the certified list of employees in the bargaining unit, or where necessary, the
payrolls covering the members of the bargaining unit for the last three (3) months prior to the issuance
of the order.
d) Denial of the Petition; Grounds
Book V, Rule VIII, Sec. 14. Denial of the petition; Grounds.

The Mediator-Arbiter may dismiss the petition on any of the following grounds:
(a) the petitioning union or national union/federation is not listed in the Department’s registry of
legitimate labor unions or that its registration certificate has been cancelled with finality in accordance
with Rule XIV of these Rules;
(b) failure of a local/chapter of national union/federation to submit a duly issued charter certificate
upon filing of the petition for certification election;
(c) filing the petition before or after the freedom period of a duly registered collective bargaining
(d) filing of a petition within one (1) year from the date of recording of the voluntary recognition, or
within the same period from a valid certification, consent of run-off election where no appeal on the
results of the certification, consent or run-off election is pending;
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(e) where a duly certified union has commenced and sustained negotiations with the employer in
accordance with Article 250 of the Labor Code within the one-year period referred to in Section 14.d of
this Rule, or where there exists a bargaining deadlock which has been submitted to conciliation or
arbitration or has become the subject of a valid notice of strike or lockout where an incumbent or
certified bargaining agent is a party;
(f) in an organized establishment, the failure to submit the twenty-five percent (25%) signature
requirement to support the filing of the petition for certification election;
(g) non-appearance of the petitioner for two consecutive scheduled conferences before the Mediator-
Arbiter despite due notice; and
(h) absence of employer-employee relationship between all the members of the petitioning union and
the establishment where the proposed bargaining unit is sought to be represented.
Book V, Rule VIII, Sec. 15. Prohibited grounds for the denial/suspension of the petition.
cancellation of the registration of the inion. Said employees are automatically deemed removed from
the list of membership of said unions.
e) Appeal
Book V, Rule VIII, Sec. 17. Release of Order/Decision within ten (10) days from the last hearing.
The Med-Arbiter shall release his/her order or decision granting or denying the petition personally to
the parties on an agreed date and time.
Book V, Rule VIII, Sec. 18. Appeal.

The order granting the conduct of a certification election in an unorganized establishment shall not be
subject to appeal. Any issue arising therefrom may be raised by means of protest on the conduct and
results of the certification election.
The order granting the conduct of a certification election in an organized establishment and the
decision dismissing or denying the petition, whether in an organized or unorganized establishment,
may be appealed to the Office of the Secretary within ten (10) days from receipt thereof.
The appeal shall be verified under oath and shall consist of a memorandum of appeal, specifically
stating the grounds relied upon by the appellant with the supporting arguments and evidence.
Book V, Rule VIII, Sec. 19. Where to file appeal.

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Book V, Rule VIII, Sec. 20. Finality of Order/Decision.
Where no appeal is filed within the ten-day period, the Med-Arbiter shall enter the finality of the
order/decision in the records of the case and cause the transmittal of the records of the petition to the
Regional Director.
Book V, Rule VIII, Sec. 21. Period to Reply.

6. Conduct of Certification Election
Book V, Rule IX. Sec. 1-20. Conduct of Certification Election.

Within twenty-four (24) hours from receipt of the notice of entry of final judgment granting the
conduct of a certification election, the Regional Director shall cause the raffle of the case to an Election
Officer who shall have control of the pre-election conference and election proceedings.
Sec. 2. Pre-election conference.

Within twenty-four (24) hours from receipt of the assignment for the conduct of a certification
election, the Election Officer shall cause the issuance of notice of pre-election conference upon the
contending unions and the employer, which shall be scheduled within ten (10) days from receipt of the
assignment. The employer shall be required to submit the certified list of employees in the bargaining
unit, or where necessary, the payrolls covering the members of the bargaining unit at the time of the
filing of the petition.
Sec. 3. Waiver of right to be heard.

Failure of any party to appear during the pre-election conference despite notice shall be considered as
a waiver of its right to be present and to question or object to any of the agreements reached in the
pre-election conference. However, this shall not deprive the non-appearing party of the right to be
furnished notices of and to attend subsequent pre-election conferences.
Sec. 4. Minutes of pre-election conference.

The Election Officer shall keep the minutes of matters raised and agreed upon during the pre-election
conference. The parties shall acknowledge the completeness and correctness of the entries in the
minutes by affixing their signatures thereon. Where
any of the parties refuse to sign the minutes, the Election Officer shall note such fact in the minutes,
including the reason for refusal to sign the same. In all cases, the parties shall be furnished a copy of
the minutes.
The pre-election conference shall be completed within thirty (30) days from the date of the first
hearing.
Sec. 5. Qualification of voters; inclusion-exclusion.

All employees who are members of the appropriate bargaining unit sought to be represented by the
petitioner at the time of the issuance of the order granting the conduct of a certification election shall
be eligible to vote. An employee who has been dismissed from work but has contested the legality of
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the dismissal in a forum of appropriate jurisdiction at the time of the issuance of the order for the
conduct of a certification election shall be considered a qualified voter, unless his/her dismissal was
declared valid in a final judgment at the time of the conduct of the certification election.
In case of disagreement over the voters' list or over the eligibility of voters, all contested voters shall be
allowed to vote. But their votes shall be segregated and sealed in individual envelopes in accordance
with Sections 10 and 11 of this Rule.
Sec. 6. Posting of Notices.

The Election Officer shall cause the posting of notice of election at least ten (10) days before the actual
date of the election in two (2) most conspicuous places in the company premises. The notice shall
contain:
(a) the date and time of the election;

(b) names of all contending unions;
(c) the description of the bargaining unit and the list of eligible and challenged voters.
The posting of the notice of election, the information required to be included therein and the duration
of
posting cannot be waived by the contending unions or the employer.
Sec. 7. Secrecy and sanctity of the ballot.

To ensure secrecy of the ballot, the Election Officer, together with the authorized representatives of
the contending unions and the employer, shall before the start of the actual voting, inspect the polling
place, the ballot boxes and the polling booths.
Sec. 8. Preparation of ballots.

The Election Officer shall prepare the ballots in English and Filipino or the local dialect. The number of
ballots should correspond to the number of voters in the bargaining unit plus a reasonable number of
extra ballots for contingencies. All ballots shall be signed at the back by the Election Officer and an
authorized representative of each of the contending unions. A party who refuses or fails to sign the
ballots waives its right to do so and the Election Officer shall enter the fact of refusal and the reason
therefor in the records of the case.
Sec. 9. Marking of votes.

The voter must put a cross ( x ) or check ( ü) mark in the square opposite the name of the union of his
choice or "No Union" if he/she does not want to be represented by any union.
If a ballot is torn, defaced or left unfilled in such a manner as to create doubt or confusion or to identify
the voter, it shall be considered spoiled. If the voter inadvertently spoils a ballot, he/she shall return it
to the Election Officer who shall destroy it and give him/her another ballot.
Sec. 10. Procedure in the challenge of votes.

The ballot of the voter who has been properly challenged during the pre-election conferences, shall be
placed in an envelope which shall be sealed by the Election Officer in the presence of the voter and the
representatives of the contending unions. The Election Officer shall indicate on the envelope the
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voter’s name, the union challenging the voter, and the ground for the challenge. The sealed envelope
shall then be signed by the Election Officer and the representatives of the contending unions. The
Election Officer shall note all challenges in the minutes of the election proceedings and shall have
custody of all envelopes containing the challenged votes. The envelopes shall be opened and the
question of eligibility shall be passed upon by the Mediator-Arbiter only if the number of segregated
votes will materially alter the results of the election.
Sec. 11. On-the-spot questions.

The Election Officer shall rule on any question relating to and raised during the conduct of the election.
In no case, however, shall the election officer rule on any of the grounds for challenge specified in the
immediately preceding section.
Sec. 12. Protest; when perfected.

Any party-in-interest may file a protest based on the conduct or mechanics of the election. Such
protests shall be recorded in the minutes of the election proceedings. Protests not so raised are
deemed waived.
The protesting party must formalize its protest with the Med-Arbiter, with specific grounds, arguments
and evidence, within five (5) days after the close of the election proceedings. If not recorded in the
minutes and formalized within the prescribed period, the protest shall be deemed dropped.
Sec. 13. Canvassing of votes.

The votes shall be counted and tabulated by the Election Officer in the presence of the representatives
of the contending unions. Upon completion of the canvass, the Election Officer shall give each
representative a copy of the minutes of the election proceedings and results of the election. The
ballots and the tally sheets shall be sealed in an envelope and signed by the Election Officer and the
representatives of the contending unions and transmitted to the Med-Arbiter, together with the
minutes and results of the election, within twenty-four (24) hours from the completion of the canvass.
Where the election is conducted in more than one region, consolidation of results shall be made within
fifteen (15) days from the conduct thereof.
Sec. 14. Conduct of election and canvass of votes.

The election precincts shall open and close on the date and time agreed upon during the pre-election
conference. The opening and canvass of votes shall proceed immediately after the precincts have
closed. Failure of the representative/s of the contending unions to appear during the election
proceedings and canvass of votes shall be considered a waiver of the right to be present and to
question the conduct thereof.
Sec. 15. Certification of Collective Bargaining Agent.

Sec. 16. Failure of election.
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Where the number of votes cast in a certification or consent election is less than the majority of the
number of eligible voters and there are no material challenged votes, the Election Officer shall declare
a failure of election in the minutes of the election proceedings.
Sec. 17. Effect of failure of election.

A failure of election shall not bar the filing of a motion for the immediate holding of another
certification or consent election within six (6) months from date of declaration of failure of election.
Sec. 18. Action on the motion.

Within twenty-four (24) hours from receipt of the motion, the Election Officer shall immediately
schedule the conduct of another certification or consent election within fifteen (15) days from receipt
of the motion and cause the posting of the notice of certification election at least ten (10) days prior to
the scheduled date of election in two (2) most conspicuous places in the establishment. The same
guidelines and list of voters shall be used in the election.
Sec. 19. Proclamation and certification of the result of the election.

Officer shall transmit the
records of the case to the Med-Arbiter who shall, within the same period from receipt of the minutes
and results of election, issue an order proclaiming the results of the election and certifying the union
which obtained a majority of the valid votes cast as the sole and exclusive bargaining agent in the
subject bargaining unit, under any of the following conditions:
shall declare such fact in the order
Sec. 20. Appeal; finality of decision.

The decision of the Med-Arbiter may be appealed to the Secretary within ten (10) days from receipt by
the parties of a copy thereof.
The appeal shall be under oath and shall consist of a memorandum of appeal, specifically stating the
grounds relied upon by the appellant with the supporting arguments and evidence.
Where no appeal is filed within the ten-day period, the order/decision shall become final and executor
and the Med-Arbiter shall enter this fact into the records of the case.
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a) Pre-election Conference
Book V, Rule IX. Sec. 2. (supra on page 114)
b) Voter List and Voters
Book V, Rule I, Section 1 (q)

(q) "Eligible Voter" refers to a voter belonging to the appropriate bargaining unit that is the subject of a
petition for certification election.
 R. Transport Corp v Laguesma (1993)

Company: R. TRANSPORT CORPORATION
Union/s: CHRISTIAN LABOR ORGANIZATION OF THE PHILIPPINES (CLOP), NATIONAL FEDERATION OF
LABOR UNIONS (NAFLU), and ASSOCIATED LABOR UNIONS (ALU-TUCP)
Issue: W/N the employment status of the employees who have been properly laid off because of a
strike pending the resolution of such should be resolved before a certification of election be
conducted. NO, such employees legally remain as such, until either the motion to declare their
employment status legally terminated or their complaint for illegal dismissal is resolved by the NLRC.
Doctrine: “employees who have been improperly laid-off but who have a present, unabandoned right
to or expectation of re-employment, are eligible to vote in certification elections (Rothenberg on Labor
Relations, p. 548). Thus, and to repeat, if the dismissal is under question, as in the case now at bar
whereby a case of illegal dismissal and/or unfair labor practices was filed, the employees concerned
could still qualify to vote in the elections.”
 Yokohama Tire Phil. Inc. v Yokohama Employees Union (2007)

Company: YOKOHAMA TIRE PHILIPPINES, INC.,
Union/s: YOKOHAMA EMPLOYEES UNION,
Issue: W/N the votes of the dismissed employees pending resolution of the complaint for dismissal
filed in the SOLE should be counted. YES. Section 2 Rule XII (rule in force during the petition for
certification was conducted) unequivocally and unambiguously allows dismissed employees to vote
during the certification election if the case they filed contesting their dismissal is still pending at the
time of the election. Furthermore, the new rule, Sec5 Rule IX explicitly stated that without a final
judgment declaring the legality of dismissal, dismissed employees are eligible or qualified voters.
Doctrine: “Section 2 Rule XII (rule in force during the petition for certification was conducted)
unequivocally and unambiguously allows dismissed employees to vote during the certification election
if the case they filed contesting their dismissal is still pending at the time of the election. Furthermore,
the new rule, Sec5 Rule IX explicitly stated that without a final judgment declaring the legality of
dismissal, dismissed employees are eligible or qualified voters.”
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c) Posting Notice
Book V, Rule I, Section 1 (o)

(o) "Election Officer" refers to an officer of the Bureau or Labor Relations Division in the Regional Office
authorized to conduct certification elections, election of union officers and other forms of elections
and referenda in accordance with Rule XII, Sections 2-5 of these Rules.
 Jisscor Independent Union v Torres (1993)

*BAD LAW: The Rule IX, Book V Sec 6 expressly prohibits the waiver of the posting requirement.
Company: Jacinto Iron and Steel Sheets Corporation (JISSCOR)
Union/s: JISSCOR Independent Union (JIU), ASSOCIATED LABOR UNI0N (ALU) and SAMAHANG
MANGGAGAWA NG JISSCOR
Issue: W/N JIU is estopped in raising the non-posting issue as they have already agreed to waive the 5-
day mandatory days of posting by agreement during the pre-election conference. YES, the agreement
was made in good faith and there is no misinformation shown in the results of the petition of
certification election.
Doctrine: “The petitioner is estopped from raising that issue for it signed an agreement with the
private respondent to waive the mandatory five (5) days posting of election notices. The doctrine of
estoppel is based on grounds of public policy, fair dealing, good faith and justice, and its purpose is to
forbid one to speak against his own act, representations, or commitments to the injury of one to whom
they were directed and who reasonably relied thereon.”
d) Voting Day/Venue
 Asian Design and Manufacturing Corporation v Calleja (1989)

*Bad Law: The amended rules do not provide any stipulation with regard to the preferred date of the
certification election being a regular business day.
Company: ASIAN DESIGN AND MANUFACTURING CORPORATION
Union/s: SOUTHERN PHILIPPINES FEDERATION OF LABOR KILUSANG MAYO UNO (KMU)
Issue: W/N the certification election held during a regular business day (as required by Sec 2 Rule VI,
Book VI) was invalid considering that during such day, there was a strike held by the Union. NO,
Certification election was valid as 413 employees voted out of 423. Furthermore, there is no showing
of any protest on the matter containg the election proceedings in the Minutes of the Certification
Election. The holding of the strike does not affect the regularity of the business day.”
Doctrine: “Moreover, it can not be denied that an actual election was conducted on said date where,
of the 423 workers who voted, 413 voted for SPFL as its exclusive bargaining agent. In the "Minutes of
the Certification Election among the Rank and File Employees of Asian Design Manufacturing Corp.",
the representatives of the contending unions, and of the Ministry of Labor even attested that the
election was peaceful and orderly (pp. 79-83, Rollo) and none of the parties registered any protest on
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any matter concerning the election proceedings. There is thus, no valid reason to annul the
certification election.”
e) Conduct of Election
Book V, Rule IX. Sec. 1, 15. (supra on page 114)
 The Hercules Industries Inc. v SOLE (1992)

Company: HERCULES INDUSTRIES, INC.,
Union/s: NATIONAL FEDERATION OF LABOR
Issue: W/N the certification election be declared null and void considering protest filed by the
employer against the conduct of the election which alleged that such involves non-compliance of the
requirements and irregularities in the conduct of the election. NO. The election minutes (being the
relevant and competent evidence of the elections) belied the allegations.
Doctrine: “On the basis of the election minutes, which are the only relevant and competent evidence
on the conduct of the election, the Med-Arbiter did not err in declaring the NFL as the duly elected
exclusive bargaining agent of the petitioner’s rank and file workers. That finding should be accorded
not only respect but also finality by this Court for it is supported by substantial evidence.”
f) Challenging of Votes and On the Spot Questions
Book V, Rule IX. Sec. 10-12. (supra on page 114)
Book V, Rule I, Section 1 (p)

(p) "Election Proceedings" refer to the period during a certification election, consent or run-off election
and election of union officers, starting from the opening to the closing of the polls, including the
counting, tabulation and consolidation of votes, but excluding the period for the final determination of
the challenged votes and the canvass thereof.
g) Protest Period
Book V, Rule IX. Sec. 12, 13. (supra on page 114)
 DHL Philippines Corporation United Rank and File Association – FFW v Buklod ng Manggagawa ng DHL
Philippines Corporation (2004)
Company: BUKLOD NG MANGGAGAWA NG DHL PHILIPPINES CORPORATION
Union/s: DHL PHILIPPINES CORPORATION UNITED RANK AND FILE ASSOCIATION-FEDERATION OF FREE
WORKERS (DHL-URFA-FFW)
Issue: W/N the results of the certification election should be declared null and void even if the petition
for nullification of certification election is filed outside and not formalized during the protest period.
Yes, the petition for nullification in this case was treated as a protest to the certification election. Even
if such was not formalized before the certification of the Election Officer of the results of election, the
rules were relaxed in this case since the employees only had known of the misrepresentation after the
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certification. Furthermore, the Election Officer should have deffered when the Med Arbitrer gave due
course to the Petition for Nullification.
Doctrine: “Under Section 13 of the Rules Implementing Book V (Labor Relations) of the Labor Code,[12]
as amended, the election officer’s authority to certify the results of the election is limited to situations
in which there has been no protest filed; or if there has been any, it has not been perfected or
formalized within five days from the close of the election proceedings…
Further, Section 14 of the same Rules provides that when a protest has been perfected, only the med-
arbiter can proclaim and certify the winner. Clearly, this rule is based on the election officer’s function,
which is merely to conduct and supervise certification elections.[13] It is the med-arbiter who is
authorized to hear and decide representation cases.[14] Consequently, the decision whether to certify
the results of an election or to set them aside due to incidents occurring during the campaign is within
the med-arbiter’s discretion. The circumstances in the present case show that the employees did not
sleep on their rights. Hence, their failure to follow strictly the procedural technicalities regarding the
period for filing their protest should not be taken against them. Mere technicalities should not be
allowed to prevail over the welfare of the workers.[15] What is essential is that they be accorded an
opportunity to determine freely and intelligently which labor organization shall act on their behalf.[16]
Having been denied this opportunity by the betrayal committed by petitioner’s officers in the present
case, the employees were prevented from making an intelligent and independent choice.”
h) Requisite for Validity of Election/Failure of Election
Book V, Rule I, Section 1 (q) (supra on page 118)
Book V, Rule IX. Sec. 17-19. (supra on page 114)
 Benguet Electric Coop. Inc. v Calleja (1989)

Company: BENGUET ELECTRIC COOPERATIVE, INC.,
Union/s: BENECO EMPLOYEES LABOR UNION
Issue: W/N there is a failure of the certification election considering that a large number of coop
members voted . Yes. The right to collective bargaining is not available to members of coop. Another
certification election was ordered since it cannot be determined whether BELU was duly elected by
eligible voters since those who are members of the coop were allowed to vote.
Doctrine: “as members of the cooperative they are co-owners thereof. As such, they cannot invoke the
right to collective bargaining for "certainly an owner cannot bargain with himself or his co-owners."
[Cooperative Rural Bank of Davao City, Inc. v. Ferrer-Calleja, et al., supra]. 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… In this case it cannot be determined
whether or not respondent union was duly elected by the eligible voters of the bargaining unit since
even employees who are ineligible to join a labor union within the cooperative because of their
membership therein were allowed to vote in the certification election.”
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 NUHWARIN – Manila Pavilion Hotel Chapter v SOLE (2009)
Company: HOLIDAY INN MANILA PAVILION HOTEL LABOR UNION AND ACESITE PHILIPPINES HOTEL
CORPORATION
Union/s: NATIONAL UNION OF WORKERS IN HOTELS, RESTAURANTS AND ALLIED INDUSTRIES- MANILA
PAVILION HOTEL CHAPTER, Holiday Inn Manila Pavillion Hotel Labor Union (HIMPHLU)
Issue: W/N there should be a run-off considering that the HIMPHLU did not attain the majority of the
votes cast by the eligible voters (169+151+1+16probi). YES. The majority of the votes cast by eleigible
voters is 170, as such it follows that there should be a run-off election.”
Doctrine: “As to whether HIMPHLU should be certified as the exclusive bargaining agent, the Court
rules in the negative. It is well-settled that under the so-called “double majority rule,” for there to be a
valid certification election, majority of the bargaining unit must have voted AND the winning union
must have garnered majority of the valid votes cast… Clearly, HIMPHLU was not able to obtain a
majority vote. The position of both the SOLE and the appellate court that the opening of the 17
segregated ballots will not materially affect the outcome of the certification election as for, so they
contend, even if such member were all in favor of petitioner, still, HIMPHLU would win, is thus
untenable. It bears reiteration that the true importance of ascertaining the number of valid votes cast
is for it to serve as basis for computing the required majority, and not just to determine which union
won the elections. The opening of the segregated but valid votes has thus become material. To be
sure, the conduct of a certification election has a two-fold objective: to determine the appropriate
bargaining unit and to ascertain the majority representation of the bargaining representative, if the
employees desire to be represented at all by anyone. It is not simply the determination of who
between two or more contending unions won, but whether it effectively ascertains the will of the
members of the bargaining unit as to whether they want to be represented and which union they want
to represent them. Having declared that no choice in the certification election conducted obtained the
required majority, it follows that a run-off election must be held to determine which between
HIMPHLU and petitioner should represent the rank-and-file employees”
i) Nullification of Election Results
 United Employees Union of Gelmart Industries v Noriel (1975)

Company: GELMART INDUSTRIES PHILIPPINES
Union/s: UNITED EMPLOYEES UNION OF GELMART INDUSTRIES PHILIPPINES (UEUGIP), NATIONAL
UNION OF GARMENTS, TEXTILE, CORDAGE AND ALLIED WORKERS OF THE PHILIPPINES (GATCORD)
Issue: W/N the certification election should be nullified considering the discrepancy on the Sample
Ballot and the actual ballot caused confusion to the voters. No. The assertion of the confusion and
demoralization is not substantially proven. Furthermore, the issue was first raised in the appeal.
Doctrine: “"The slightest doubt cannot therefore be entertained that what possesses significance in a
petition for certification is that through such a device the employees are given the opportunity to make
known who shall have the right to represent them. What is equally important is that not only some but
all of them should have the right to do so." 24 If heed be paid to the above well-settled principle and
applied to the facts disclosed in the present petition, it would be apparent that the grievance spoken of
is more fancied than real, the assertion of confusion and demoralization based on conjecture rather
than reality. The mode and manner in which Antonio Diaz demonstrated how militant and articulate he
could be in presenting his side of the controversy could hardly argue for the accuracy of his claim that
his men did lose heart by what appeared at the most to be an honest mistake, if it could be
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characterized as one. Certainly then, the accusation that there was abuse of discretion, much less a
grave one, falls to the ground.”
j) Run-Off Election
Book V, Rule X, Section 1. When proper.

When an election which provides for three (3) or more choices results in none of the contending
unions receiving a majority of the valid votes cast, and there are no objections or challenges which if
sustained can materially alter the results, the Election Officer shall motu propio conduct a run-off
election within ten (10) days from the close of the election proceedings 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 (50%) percent of the number of votes cast.
"No Union" shall not be a choice in the run-off election. Notice of run-off elections shall be posted by
the Election Officer at least five (5) days before the actual date of run-off election.
Book V, Rule X, Section 2. Qualification of voters.

The same voters' list used in the certification election shall be used in the run-off election. The ballots
in the run-off election shall provide as choices the unions receiving the highest and second highest
number of the votes cast. The labor union receiving the greater number of valid votes cast shall be
certified as the winner, subject to Section 20, Rule IX.
k) Effect of Non-filing of Petition for Certification Election

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
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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.
7. Where no Petition for Certification Election is Filed
Art. 253. Right of employees in the public service.

service shall have the right to form associations for purposes not contrary to law.
Art. 256. Non-abridgment of right to self-organization.

purpose for their mutual aid and protection, subject to the provisions of Article 264 of this Code.
D. Certification of Designated Majority Union
Art. 266. Exclusive bargaining representation and workers’ participation in policy and decision-making.
The labor organization designated or selected by the majority of the employees in an appropriate
collective bargaining unit shall be the exclusive representative of the employees in such unit for the
purpose of collective bargaining. However, an individual employee or group of employees shall have
the right at any time to present grievances to their employer.
employers may form labor-management councils: Provided, That the representatives of the workers in
establishment.
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Book V, Rule I, Section 1 (t)

(t) "Exclusive Bargaining Representative" refers to a legitimate labor union duly recognized or certified
as the sole and exclusive bargaining representative or agent of all the employees in a bargaining unit.
Book V, Rule IX, Section 16. Certification of Collective Bargaining Agent.

Book V, Rule IX, Section 20. Proclamation and certification of the result of the election.
Officer shall transmit the records of the case to the Med-Arbiter who shall, within the same period
from receipt of the minutes and results of election, issue an order proclaiming the results of the
election and certifying the union which obtained a majority of the valid votes cast as the sole and
exclusive bargaining agent in the subject bargaining unit, under any of the following conditions:
shall declare such fact in the order.
 Philippine Diamond Hotel and Resort Inc. v Manila Diamond Hotel Employees Union (2006)
Company: PHILIPPINE DIAMOND HOTEL AND RESORT, INC. (MANILA DIAMOND HOTEL)
Union/s: MANILA DIAMOND HOTEL EMPLOYEES UNION
Issue: W/N the Union may opt to represent in collective bargaining only their members as SEBA. NO,
the SEBA is the exclusive representative of the employees in the bargaining unit.
Doctrine: “…only the labor organization designated or selected by the majority of the employees in an
appropriate collective bargaining unit is the exclusive representative of the employees in such unit for
the purpose of collective bargaining…The union (hereafter referred to as respondent) is admittedly not
the exclusive representative of the majority of the employees of petitioner, hence, it could not demand
from petitioner the right to bargain collectively in their behalf.”
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E. Bars to Certification Election

Art. 260. Procedure in collective bargaining.

a. When a party desires to negotiate an agreement, it shall serve a written notice upon the other
party with a statement of its proposals. The other party shall make a reply thereto not later than ten
(10) calendar days from receipt of such notice;
b. Should differences arise on the basis of such notice and reply, either party may request for a
conference which shall begin not later than ten (10) calendar days from the date of request.
c. If the dispute is not settled, the Board shall intervene upon request of either or both parties or
at its own initiative and immediately call the parties to conciliation meetings. The Board shall have the
power to issue subpoenas requiring the attendance of the parties to such meetings. It shall be the duty
d. During the conciliation proceedings in the Board, the parties are prohibited from doing any act
e. The Board shall exert all efforts to settle disputes amicably and encourage the parties to submit
their case to a voluntary arbitrator.
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.
Art. 264. Terms of a collective bargaining agreement.

Any Collective Bargaining Agreement that the parties may enter into shall, insofar as the
representation aspect is concerned, be for a term of five (5) years.
No petition questioning the majority status of the incumbent bargaining agent shall be entertained and
no certification election shall be conducted by the Department of Labor and Employment outside of
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the sixty-day period immediately before the date of expiry of such five-year term of the Collective
Bargaining Agreement.
All other provisions of the Collective Bargaining Agreement shall be renegotiated not later than three
(3) years after its execution.
Any agreement on such other provisions of the Collective Bargaining Agreement entered into within six
(6) months from the date of expiry of the term of such other provisions as fixed in such Collective
Bargaining Agreement, shall retroact to the day immediately following such date. If any such
agreement is entered into beyond six months, the parties shall agree on the duration of retroactivity
thereof. In case of a deadlock in the renegotiation of the Collective Bargaining Agreement, the parties
may exercise their rights under this Code.

bargaining agent is filed before the Department of Labor and Employment within the sixty-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
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.
Book V, Rule VIII, Section 3. When to file.

A petition for certification election may be filed anytime, except:
(a) when a fact of voluntary recognition has been entered or a valid certification, consent or run-off
election has been conducted within the bargaining unit within one (1) year prior to the filing of the
petition for certification election. Where an appeal has been filed from the order of the Med-Arbiter
certifying the results of the election, the running of the one year period shall be suspended until the
decision on the appeal has become final and executory;
(b) when the duly certified union has commenced and sustained negotiations in good faith with the
employer in accordance with Article 250 of the Labor Code within the one year period referred to in
the immediately preceding paragraph;
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(c) when a bargaining deadlock to which an incumbent or certified bargaining agent is a party had been
submitted to conciliation or arbitration or had become the subject of a valid notice of strike or lockout;
(d) when a collective bargaining agreement between the employer and a duly recognized or certified
bargaining agent has been registered in accordance with Article 231 of the Labor Code. Where such
collective bargaining agreement is registered, the petition may be filed only within sixty (60) days prior
to its expiry.
Book V, Rule VIII, Section 14. Denial of the petition; Grounds.

The Med-Arbiter may dismiss the petition on any of the following grounds:
(a) the petitioner is not listed in the Department's registry of legitimate labor unions or that its legal
personality has been revoked or cancelled with finality in accordance with Rule XIV of these Rules;
(b) the petition was filed before or after the freedom period of a duly registered collective bargaining
(c) the petition was filed within one (1) year from entry of voluntary recognition or a valid certification,
consent or run-off election and no appeal on the results of the certification, consent or run-off election
is pending;
(d) a duly certified union has commenced and sustained negotiations with the employer in accordance
with Article 250 of the Labor Code within the one-year period referred to in Section 14.c of this Rule, or
there exists a bargaining deadlock which had been submitted to conciliation or arbitration or had
become the subject of a valid notice of strike or lockout to which an incumbent or certified bargaining
agent is a party;
(e) in case of an organized establishment, failure to submit the twenty-five percent (25%) support
requirement for the filing of the petition for certification election.
1. One-Year Bar Rule
 Kaisahan ng Manggagawang Pilipino v Trajano (1991)

Company: VIRON GARMENTS MFG., CO., INC,
Union/s: KAISAHAN NG MANGGAGAWANG PILIPINO (KAMPIL-KATIPUNAN)
VIRON GARMENTS MFG., CO., INC, National Federation of Labor Unions (NAFLU)
Issue: W/N KAMPIL may file for a PCE after the expiration of the one-year certification year of the SEBA
considering the alleged deadlock of NAFLU (SEBA). YES, the 1yr BAR rule is NOT APPLICABLE, since
there is no proof of prior filing of a bargaining deadlock submitted to the conciliation or arbitration or
has become a valid notice of stike or lockout.
Doctrine: “prior to the filing of the petition for election in this case, there was no such "bargaining
deadlock ... (which) had been submitted to conciliation or arbitration or had become the subject of a
valid notice of strike or lockout… a period of more than four (4) years, no collective bargaining
agreement was ever executed, and no deadlock ever arose from negotiations between NAFLU and
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VIRON resulting in conciliation proceedings or the filing of a valid strike notice. The respondents advert
to a strike declared by NAFLU on October 26, 1986 for refusal of VIRON to bargain and for violation of
terms and conditions of employment, which was settled by the parties' agreement, and to another
strike staged on December 6, 1986 in connection with a claim of violation of said agreement, a dispute
which has since been certified for compulsory arbitration by the Secretary of Labor & Employment. 4
Obviously, however, these activities took place after the initiation of the certification election case by
KAMPIL, and it was grave abuse of discretion to have regarded them as precluding the holding of the
certification election thus prayed for."
 R. Transport Corp v Laguesma (1993)

Company: R. TRANSPORT CORPORATION
Union/s: CHRISTIAN LABOR ORGANIZATION OF THE PHILIPPINES (CLOP), NATIONAL FEDERATION OF
LABOR UNIONS (NAFLU), and ASSOCIATED LABOR UNIONS (ALU-TUCP)
Issue: W/N the one-year bar rule is applicable considering that the 2nd PCE was filed within one year
after the 1st PCE was dismissed for not including ALL eligible employees in its bargaining unit. NO, since
there was no actual election held.
Doctrine: “The phrase "final certification election result" means that there was an actual conduct of
election i.e. ballots were cast and there was a counting of votes. In this case, there was no certification
election conducted precisely because the first petition was dismissed, on the ground of a defective
petition which did not include all the employees who should be properly included in the collective
bargaining unit.
2. Negotiation Bar Rule
3. Deadlock Bar Rule
 National Congress of Unions in the Sugar Industry v Trajano (1992)

Company CALINOG REFINERY CORPORATION (NASUREFCO)
Union/s: NATIONAL CONGRESS OF UNIONS IN THE SUGAR INDUSTRY OF THE PHILIPPINES (NACUSIP)-
TUCP, FEDERATION OF UNIONS OF RIZAL (FUR)-TUCP
Issue: W/N the FUR can file a PCE considering that no certification election was held for 12 months and
no CBA agreement was entered into by the SEBA and employer since it was alleged that there is a
deadlock between the latter two. NO, the deadlock was actually evidenced by a certification from the
LA for compulsory arbitration.
Doctrine: “a petition for certification election may be filed at any time, in the absence of a collective bargaining
agreement. Otherwise put, the rule prohibits the filing of a petition for certification election in the following
cases:
(1) during the existence of a collective bargaining agreement except within the freedom period;
(2) within one (1) year from the date of issuance of declaration of a final certification election result; or
(3) during the existence of a bargaining deadlock to which an incumbent or certified bargaining agent is a
party and which had been submitted to conciliation or arbitration or had become the subject of a valid notice of
strike or lockout.
The Deadlock Bar Rule simply provides that a petition for certification election can only be entertained if
there is no pending bargaining deadlock submitted to conciliation or arbitration or had become the subject of a
valid notice of strike or lockout. The principal purpose is to ensure stability in the relationship of the workers and
the management.
In the case at bar, a bargaining deadlock was already submitted to arbitration when private respondent
FUR-TUCP filed a petition for certification election. The same petition was dismissed for lack of merit by the
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Acting Med-Arbiter in an order dated July 23, 1982 on the sole ground that the petition is barred by a pending
bargaining deadlock. However, respondent Director set aside the same order and subsequently affirmed an
order giving due course to the petition for certification election and ordering that an election be held.
The law demands that the petition for certification election should fail in the presence of a then
pending bargaining deadlock.
 Divine Word University of Tacloban v SOLE (1992)

Company: DIVINE WORD UNIVERSITY OF TACLOBAN
Union/s: DIVINE WORD UNIVERSITY EMPLOYEES UNION- ALU
Issue: W/N the deadlock bar rule is applicable considering that the employer and the union were not
able to reach an agreement for 3 years because of the withdrawal of proposals of the Union after the
employer had submitted its counter-proposals and thereafter, the employer continues to delay the
conference. NO, the deadlock bar rule does not apply as there is no deadlock.
Doctrine: “ A deadlock” is defined as the “counteraction of things producing entire stoppage: a state of
inaction or of neutralization caused by the opposition of persons or of factions (as in government or a
voting body): standstill.”[21] There is a deadlock when there is a “complete blocking or stoppage
resulting from the action of equal and opposed forces; as, the deadlock of a jury or legislature.”[22]
The word is synonymous with the word impasse[23] which, within the meaning of the American
federal labor laws, “presupposes reasonable effort at good faith bargaining which, despite noble
intentions, does not conclude in agreement between the parties… there was no “reasonable effort at
good faith bargaining” specially on the part of the University. Its indifferent attitude towards collective
bargaining inevitably resulted in the failure of the parties to arrive at an agreement. As it was evident
that unilateral moves were being undertaken only by the DWUEU-ALU, there was no “counteraction”
of forces or an impasse to speak of. While collective bargaining should be initiated by the union, there
is a corresponding responsibility on the part of the employer to respond in some manner to such acts.”
4. Contract Bar Rule
 Colegio de San Juan de Letran v Association of Employees and Faculty of Letran (2000)
Company: COLEGIO DE SAN JUAN DE LETRAN
Union/s: ASSOCIATION OF EMPLOYEES AND FACULTY OF LETRAN and ELEONOR AMBAS
Issue: W/N the PCE is barred by the contract-bar rule considering that it was filed after the freedom
period and there are CBA negotiations between the SEBA and the employer. YES, Despite the lapse of
the formal effectivity of the CBA, status quo should be maintained, thus the former CBA remains
effective until a new agreement is entered into. Furthermore, it was filed outside the freedon period
and no legitimate representaion issue arose.
Doctrine: “the mere filing of a petition for certification election does not ipso facto justify the
suspension of negotiation by the employer. The petition must first comply with the provisions of the
Labor Code and its Implementing Rules. Foremost is that a petition for certification election must be
filed during the sixty-day freedom period. The "Contract Bar Rule" under Section 3, Rule XI, Book V, of
the Omnibus Rules Implementing the Labor Code, provides that: " .… If a collective bargaining
agreement has been duly registered in accordance with Article 231 of the Code, a petition for
certification election or a motion for intervention can only be entertained within sixty (60) days prior to
the expiry date of such agreement." The rule is based on Article 232,[8] in relation to Articles 253, 253-
A and 256 of the Labor Code. No petition for certification election for any representation issue may be
filed after the lapse of the sixty-day freedom period. The old CBA is extended until a new one is signed.
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The rule is that despite the lapse of the formal effectivity of the CBA the law still considers the same as
continuing in force and effect until a new CBA shall have been validly executed.[9] Hence, the contract
bar rule still applies.[10] The purpose is to ensure stability in the relationship of the workers and the
company by preventing frequent modifications of any CBA earlier entered into by them in good faith
and for the stipulated original period.[11]In the case at bar, the lifetime of the previous CBA was from
1989-1994. The petition for certification election by ACEC, allegedly a legitimate labor organization,
was filed with the Department of Labor and Employment (DOLE) only on May 26, 1996. Clearly, the
petition was filed outside the sixty-day freedom period. Hence, the filing thereof was barred by the
existence of a valid and existing collective bargaining agreement. Consequently, there is no legitimate
representation issue and, as such, the filing of the petition for certification election did not constitute a
bar to the ongoing negotiation..”
 PICOP Resources Inc. v Ricardo Dequilla (2011)

Company: PICOP RESOURCES, INCORPORATED (PRI)
Union/s: NAMAPRI-SPFI
Issue: W/N the contract bar rule applies since the signing of the authorization for PCE outside the
freedom period is considered as acts of disloyalty. NO, the mere signing of the authoriazation of PCE is
not the actual PCE which is filed within the 60-day freedom period.
Doctrine: “mere signing of the authorization in support of the Petition for Certification Election of FFW
on March 19, 20 and 21, or before the "freedom period," is not sufficient ground to terminate the
employment of respondents inasmuch as the petition itself was actually filed during the freedom
period. Nothing in the records would show that respondents failed to maintain their membership in
good standing in the Union. Respondents did not resign or withdraw their membership from the Union
to which they belong. Respondents continued to pay their union dues and never joined the FFW.
Significantly, petitioner's act of dismissing respondents stemmed from the latter's act of signing an
authorization letter to file a petition for certification election as they signed it outside the freedom
period. However, we are constrained to believe that an "authorization letter to file a petition for
certification election" is different from an actual "Petition for Certification Election." Likewise, as per
records, it was clear that the actual Petition for Certification Election of FFW was filed only on May 18,
2000. Thus, it was within the ambit of the freedom period which commenced from March 21, 2000
until May 21, 2000. Strictly speaking, what is prohibited is the filing of a petition for certification
election outside the 60-day freedom period. This is not the situation in this case. If at all, the signing of
the authorization to file a certification election was merely preparatory to the filing of the petition for
certification election, or an exercise of respondents’ right to self-organization.”
F. Opposition; Suspension of Certification Election: Prejudicial Question

 Lingkod Manggagawa ng Rubberworld, Adidas-ANGLO v. Rubberworld Phils. Inc. (2007)
Company: RUBBERWORLD (PHILS.) INC.
Union/s: LINGKOD MANGGAGAWA SA RUBBERWORLD, ADIDAS-ANGLO
Issue: W/N the PCE and the ULP case against the Company should be suspended pending the
resonlution of Petition foe Declaration of a State Suspension of Payments with Proposed Rehabilitation
Plan. YES, since PD 902-A (SEC Authority) mandates the suspension of all action for claims against a
corporation placed under the management of SEC. Such that the resolution of the SEC case is
prejudicial to the holding of a certification election.
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Doctrine: “The Labor Arbiter completely disregarded and violated Section 6(c) of Presidential Decree
902-A, as amended, which categorically mandates the suspension of all actions for claims against a
corporation placed under a management committee by the SEC. Thus, the proceedings before the
Labor Arbiter and the order and writ subsequently issued by the NLRC are all null and void for having
been undertaken or issued in violation of the SEC suspension Order dated December 28, 1994. As such,
the Labor Arbiter’s decision, including the dismissal by the NLRC of Rubberworl’s appeal, could not
have achieved a final and executory status… It is incontrovertible that the denial of Rubberworld’s
motion to suspend proceedings in the principal case was incorporated in the decision of the Labor
Arbiter. Obviously, then, the Labor Arbiter’s decision of August 16, 1995 was rendered at a time
when Lingkod’s complaint against Rubberworld in NLRC-NCR-Case No. 00-09-06637-94 ought to have
been suspended. In short, at the time the SEC issued its suspension Order of December 28, 1994, the
proceedings before the Labor Arbiter were still very much pending. As such, no final and executory
decision could have validly emanated therefrom. Like the CA, we do not see any reason why the
doctrine of stare decisis will not apply to this case.”
G. Effect of Petition for Cancellation of Trade Union Registration
Art. 245. 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.
 In re: Petition for Cancellation of the Union Registration of Air Philippines Flight Attendants Association
v BLR (2006)
Company: AIR PHILIPPINES CORPORATION
Union/s: AIR PHILIPPINES FLIGHT ATTENDANTS ASSOCIATION,
Issue: W/N the Petition for De-Certification and Cancellation of Union Registration should be granted
considering the allegation of the mixture of supervisory employees to the rank-and-file employees and
misrepresentation of the Union by making it appear that it is not a mixture of such. NO. The
misrepresentation contemplated in the cancellation of certification of union registration is not such
misrepresentation.
Doctrine: “for the purpose of de-certifying a union, it is not enough to establish that the rank-and-file
union includes ineligible employees in its membership. Pursuant to Article 239 (a) and (c) of the Labor
Code, it must be shown that there was 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, or in connection with the election of officers, minutes of the election of officers, the list of
voters, or failure to submit these documents together with the list of the newly elected-appointed
officers and their postal addresses to the BLR… APC did not impute on APFLAA such misrepresentation
of the character necessitated under Article 239 (a) and (c) of the Labor Code. APC merely argued that
APFLAA was not qualified to become a legitimate labor organization by reason of its mixed composition
of rank-and-file and supervisory employees; and that APFLAA committed misrepresentation by making
it appear that its composition was composed purely of rank-and-file employees. Such
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misrepresentation (if it can be called as such) as alleged by APC, is not conformable to Article 239 (a)
and (c) of the Labor Code.”
VII. COLLECTIVE BARGAINING: CONCEPT, PROCEDURES AND ISSUES

A. General Concept
1. Policy Declaration
Art. 218 A (a). Declaration of Policy.

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;
Art. 211. 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.

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 to
investments, and to expansion and growth.
2. Definition, Nature and Purpose, and Rules Interpretation
 Kiok Loy v NLRC (1986)

Company: SWEDEN ICE CREAM PLANT,
Union/s: PAMBANSANG KILUSAN NG PAGGAWA (KILUSAN)
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Issue: W/N the company is guilty of ULP since it did not send counter-proposals to the proposal sent by
the SEBA. YES. Collective Bargaining is a mutual LEGAL obligaition of both the SEBA and employer. The
company’s totality of actions exemplifies bad faith.
Doctrine: “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. So much
so that Article 249, par. (g) of the Labor Code makes it an unfair labor practice for an employer to
refuse "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 grievance or question arising under such an agreement and
executing a contract incorporating such agreement, if requested by either party. While it is a mutual
obligation of the parties to bargain, the employer, however, is not under any legal duty to initiate
contract negotiation. 7 The mechanics of collective bargaining is set in motion only when the following
jurisdictional preconditions are present, namely, (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; (2) proof of majority representation; and (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. From the over-all conduct of petitioner company in relation to the task of
negotiation, there can be no doubt that the Union has a valid cause to complain against its
(Company's) attitude, the totality of which is indicative of the latter's disregard of, and failure to live up
to, what is enjoined by the Labor Code — to bargain in good faith.”
3. Waiver
 Rivera v Espiritu and Laguesma (2002)

Company: PHILIPPINE AIRLINES (PAL), LUCIO TAN,
Union/s: PAL Employees Association (PALEA).
Issue: W/N the waiver of the 5-year lifetime of the CBA is valid pursuant to a mutual agreement
between PAL and PALEA providing that the CBA may be suspended for 10 years except for certain
provisions. YES, PAL-PALEA agreement is a voluntary collective bargaining negotiation. Art 253-A
providing for the terms of the CBA does not prohibit the waiver or suspension of timetables.
Doctrine: “A CBA is “a contract executed upon request of either the employer or the exclusive
bargaining representative incorporating the agreement reached after negotiations 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.”[18] The primary purpose of a
CBA is the stabilization of labor-management relations in order to create a climate of a sound and
stable industrial peace.[19] In construing a CBA, the courts must be practical and realistic and give due
consideration to the context in which it is negotiated and the purpose which it is intended to serve.[20]
The assailed PAL-PALEA agreement was the result of voluntary collective bargaining negotiations
undertaken in the light of the severe financial situation faced by the employer, with the peculiar and
unique intention of not merely promoting industrial peace at PAL, but preventing the latter’s closure.
We find no conflict between said agreement and Article 253-A of the Labor Code. Article 253-A has a
two-fold purpose. One is to promote industrial stability and predictability. Inasmuch as the agreement
sought to promote industrial peace at PAL during its rehabilitation, said agreement satisfies the first
purpose of Article 253-A. The other is to assign specific timetables wherein negotiations become a
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matter of right and requirement. Nothing in Article 253-A, prohibits the parties from waiving or
suspending the mandatory timetables and agreeing on the remedies to enforce the same. In the
instant case, it was PALEA, as the exclusive bargaining agent of PAL’s ground employees, that
voluntarily entered into the CBA with PAL. It was also PALEA that voluntarily opted for the 10-year
suspension of the CBA. Either case was the union’s exercise of its right to collective bargaining. The
right to free collective bargaining, after all, includes the right to suspend it. The acts of public
respondents in sanctioning the 10-year suspension of the PAL-PALEA CBA did not contravene the
“protection to labor” policy of the Constitution. The agreement afforded full protection to labor;
promoted the shared responsibility between workers and employers; and the exercised voluntary
modes in settling disputes, including conciliation to foster industrial peace."
B. Duty to Bargain
Art. 260. Procedure in collective bargaining.

a. When a party desires to negotiate an agreement, it shall serve a written notice upon the other
party with a statement of its proposals. The other party shall make a reply thereto not later than ten
(10) calendar days from receipt of such notice;
f. Should differences arise on the basis of such notice and reply, either party may request for a
conference which shall begin not later than ten (10) calendar days from the date of request.
g. If the dispute is not settled, the Board shall intervene upon request of either or both parties or
at its own initiative and immediately call the parties to conciliation meetings. The Board shall have the
power to issue subpoenas requiring the attendance of the parties to such meetings. It shall be the duty
h. During the conciliation proceedings in the Board, the parties are prohibited from doing any act
i. The Board shall exert all efforts to settle disputes amicably and encourage the parties to submit
their case to a voluntary arbitrator.
Art. 261. 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.
Art. 262. 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
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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. 250 (c). Rights of legitimate labor organizations.

Art. 258 (g). Unfair labor practices of employers.

It shall be unlawful for an employer to commit any of the following unfair labor practice:
(g) To violate the duty to bargain collectively as prescribed by this Code;
Art. 259 (c). Unfair labor practices of labor organizations.

(c) To violate the duty, or refuse to bargain collectively with the employer, provided it is the
representative of the employees;
Art. 246 (f). Grounds for cancellation of union registration.

The following shall constitute grounds for cancellation of union registration:
(f) Entering into collective bargaining agreements which provide terms and conditions of employment
below minimum standards established by law;
 PI Mfg. Supervisors’ and Foremen Association (2008)

Company: P.I. MANUFACTURING, INCORPORATED
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Union/s: P.I. MANUFACTURING SUPERVISORS AND FOREMAN ASSOCIATION and the NATIONAL LABOR
UNION
Issue: W/N the wage distortion caused by the RA 6640 was cured by the CBA. Yes. The CBA remedied
the wage distortion.
Doctrine: “At this juncture, it must be stressed that a CBA constitutes the law between the parties
when freely and voluntarily entered into.[13] Here, it has not been shown that respondent
PIMASUFA was coerced or forced by petitioner to sign the 1987 CBA. All of its thirteen (13) officers
signed the CBA with the assistance of respondent NLU. They signed it fully aware of the passage of
R.A. No. 6640. The duty to bargain requires that the parties deal with each other with open and fair
minds. A sincere endeavor to overcome obstacles and difficulties that may arise, so that employer-
employee relations may be stabilized and industrial strife eliminated, must be apparent.[14]
Respondents cannot invoke the beneficial provisions of the 1987 CBA but disregard the concessions it
voluntary extended to petitioner. The goal of collective bargaining is the making of agreements that
will stabilize business conditions and fix fair standards of working conditions.[15] Definitely,
respondents’ posture contravenes this goal.”
 Union of Filipino Employees-Drug v Nestle Phils (2006)

Company: NESTLÉ PHILIPPINES, INCORPORATED,
Union/s: UNION OF FILIPRO EMPLOYEES - DRUG, FOOD AND ALLIED INDUSTRIES UNIONS - KILUSANG
MAYO UNO (UFE-DFA-KMU
Issue: W/N the Retirement Plan, and the discussion of which is an alleged pre-condition to the
negotiations set by the company, is valid for collective bargaining negotiation. Yes. Retirement plan is
consensual in nature. Furthermore, Nestle is not guilty of bad faith bargaining (since it was alleged that
it violated its duty to bargain as it set a precondition for negotiations).
Doctrine: “the inclusion of the retirement plan in the collective bargaining agreement as part of the
package of economic benefits extended by the company to its employees to provide them a measure
of financial security after they shall have ceased to be employed in the company, reward their loyalty,
boost their morale and efficiency and promote industrial peace, gives “a consensual character” to the
plan so that it may not be terminated or modified at will by either party (citation omitted). The fact
that the retirement plan is non-contributory, i.e., that the employees contribute nothing to the
operation of the plan, does not make it a non-issue in the CBA negotiations. As a matter of fact, almost
all of the benefits that the petitioner has granted to its employees under the CBA – salary increases,
rice allowances, midyear bonuses, 13th and 14th month pay, seniority pay, medical and hospitalization
plans, health and dental services, vacation, sick & other leaves with pay – are non-contributory
benefits. Since the retirement plan has been an integral part of the CBA since 1972, the Union’s
demand to increase the benefits due the employees under said plan, is a valid CBA issue…
….[HOWEVER], By imputing bad faith unto the actuations of Nestlé, it was UFE-DFA-KMU, therefore,
who had the burden of proof to present substantial evidence to support the allegation of unfair labor
practice. A perusal of the allegations and arguments raised by UFE-DFA-KMU in the Memorandum (in
G.R. Nos. 158930-31) will readily disclose that it failed to discharge said onus probandi as there is still a
need for the presentation of evidence other than its bare contention of unfair labor practice in order to
make certain the propriety or impropriety of the unfair labor practice charge hurled against Nestlé.
though Nestlé underscored its position that “unilateral grants, one-time company grants, company-
initiated policies and programs, which include, but are not limited to the Retirement Plan, Incidental
Straight Duty Pay and Calling Pay Premium, are by their very nature not proper subjects of CBA
negotiations and therefore shall be excluded therefrom,” such attitude is not tantamount to refusal to
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bargain. This is especially true when it is viewed in the light of the fact that eight out of nine bargaining
units have allegedly agreed to treat the Retirement Plan as a unilateral grant. Nestlé, therefore, cannot
be faulted for considering the same benefit as unilaterally granted. To be sure, it must be shown that
Nestlé was motivated by ill will, “bad faith, or fraud, or was oppressive to labor, or done in a manner
contrary to morals, good customs, or public policy, and, of course, that social humiliation, wounded
feelings, or grave anxiety resulted x x x”[60] in disclaiming unilateral grants as proper subjects in their
collective bargaining negotiations. There is no per se test of good faith in bargaining.[61] Good faith or
bad faith is an inference to be drawn from the facts,[62] to be precise, the crucial question of whether
or not a party has met his statutory duty to bargain in good faith typically turns on the facts of the
individual case. Necessarily, a determination of the validity of the Nestlé’s proposition involves an
appraisal of the exercise of its management prerogative. Employers are accorded rights and privileges
to assure their self-determination and independence and reasonable return of capital.[63] This mass of
privileges comprises the so-called management prerogatives.[64] In this connection, the rule is that
good faith is always presumed. As long as the company’s exercise of the same is in good faith to
advance its interest and not for purpose of defeating or circumventing the rights of employees under
the law or a valid agreement, such exercise will be upheld
C. Bargaining Procedure
Book V, Rule XVI. COLLECTIVE BARGAINING

Section 1. Policy. - It is the policy of the State to promote and emphasize the primacy of free and
responsible exercise of the right to self-organization and collective bargaining, either through single
enterprise level negotiations or through the creation of a mechanism by which different employers and
recognized or certified labor unions in their establishments bargain collectively.
Section 2. Disclosure of information. - In collective bargaining, the parties shall, at the request of either
of them, make available such up-to-date financial information on the economic situation of the
undertaking, which is normally submitted to relevant government agencies, as is material and
necessary for meaningful negotiations. Where the disclosure of some of this information could be
prejudicial to the undertaking, its communication may be made condition upon a commitment that it
would be regarded as confidential to the extent required. The information to be made available may
be agreed upon between the parties to collective bargaining.
Section 3. When single enterprise bargaining available. - Any voluntarily recognized or certified labor
union may demand negotiations with its employer for terms and conditions of work covering
employees in the bargaining unit concerned.
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Section 4. Procedure in single enterprise bargaining - A recognized or certified labor union that desires
to negotiate with its employer shall submit such intention in writing to the employer, together with its
proposals for collective bargaining.
The recognized or certified labor union and its employer may adopt such procedures and processes
they may deem appropriate and necessary for the early termination of their negotiations. They shall
name their respective representatives to the negotiation, schedule the number and frequency of
meetings, and agree on wages, benefits and other terms and conditions of work for all employees
covered in the bargaining unit.
Section 5. When multi-employer bargaining available. - A legitimate labor union(s) and employers may
agree in writing to come together for the purpose of collective bargaining, provided:
(a) only legitimate labor unions who are incumbent exclusive bargaining agents may participate and
negotiate in multi-employer bargaining;
(b) only employers with counterpart legitimate labor unions who are incumbent bargaining agents may
participate and negotiate in multi-employer bargaining; and (c) only those legitimate labor unions who
pertain to employer units who consent to multi-employer
bargaining may participate in multi-employer bargaining.
Section 6. Procedure in multi-employer bargaining. - Multi-employer bargaining may be initiated by the

labor unions or by the employers.
(a) Legitimate labor unions who desire to negotiate with their employers collectively shall execute a
written agreement among themselves, which shall contain the following:
1) the names of the labor unions who desire to avail of multi-employer bargaining;
2) each labor union in the employer unit;
3) the fact that each of the labor unions are the incumbent exclusive bargaining agents for their
respective employer units;
4) the duration of the collective bargaining agreements, if any, entered into by each labor union with
their respective employers.
Legitimate labor unions who are members of the same registered federation, national, or industry
union are exempt from execution of this written agreement.
(b) The legitimate labor unions who desire to bargain with multi-employers shall send a written notice
to this effect to each employer concerned. The written agreement stated in the preceding paragraph,
or the certificates of registration of the federation, national, or industry union, shall accompany said
notice.
Employers who agree to group themselves or use their existing associations to engage in
multiemployer bargaining shall send a written notice to each of their counterpart legitimate labor
unions indicating their desire to engage in multi-employer bargaining. Said notice shall indicate the
following:
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1) the names of the employers who desire to avail of multi-employer bargaining;
2) their corresponding legitimate labor organizations;
3) the fact that each corresponding legitimate union is any incumbent exclusive bargaining agent;
4) the duration of the current collective bargaining agreement, if any, entered into by each employer
with the counterpart legitimate labor union.
(c) Each employer or concerned labor union shall express its willingness or refusal to participate in
multi-employer bargaining in writing, addressed to its corresponding exclusive bargaining agent or
employer. Negotiations may commence only with regard to respective employers and labor unions
who consent to participate in multi-employer bargaining;
(d) During the course of negotiations, consenting employers and the corresponding legitimate labor
unions shall discuss and agree on the following:
1) the manner by which negotiations shall proceed;
2) the scope and coverage of the negotiations and the agreement; and
3) where appropriate, the effect of the negotiations on current agreements or conditions of

employment among the parties.
Section 7. Posting and registration of collective bargaining agreement. - Two (2) signed copies of
collective bargaining agreement reached through multi-employer bargaining shall be posted for at
least five ( 5) days in two conspicuous areas in each workplace of the employer units concerned. Said
collective bargaining agreement shall affect only those employees in the bargaining units who have
ratified it.
The same collective bargaining agreement shall be registered with the Department in accordance with
the following Rule.
1. Private Procedure
2. Labor Code Procedure
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Book V, Rule XVI, Sec. 3-6. (supra on page 161)
 Caltex Refinery Employees Association v Brillantes (1997)

Company: CALTEX (PHILIPPINES), Inc.
Union/s: CALTEX REFINERY EMPLOYEES ASSOCIATION (CREA)
Issue: W/N the SOLE acted with grave abuse of discretion when he largely adopted the proposals of the
Company. Other than his failure to rule on the issue of union security, the secretary of labor cannot be
indicted for grave abuse of discretion amounting to want or excess of jurisdiction.
Doctrine: “Petitioner’s claim of grave abuse of discretion is anchored on the simple fact that public
respondent adopted largely the proposals of private respondent. It should be understood that
bargaining is not equivalent to an adversarial litigation where rights and obligations are delineated and
remedies applied. It is simply a process of finding a reasonable solution to a conflict and harmonizing
opposite positions into a fair and reasonable compromise. When parties agree to submit unresolved
issues to the secretary of labor for his resolution, they should not expect their positions to be adopted
in toto. It is understood that they defer to his wisdom and objectivity in insuring industrial peace. And
unless they can clearly demonstrate bias, arbitrariness, capriciousness or personal hostility on the part
of such public officer, the Court will not interfere or substitute the said officer’s judgment with its own.
In this case, it is possible that this Court, or some its members at least, may even agree with the
wisdom of petitioner’s claims. But unless grave abuse of discretion is cogently shown, this Court will
refrain from using its extraordinary power of certiorari to strike down decisions and orders of quasi-
judicial officers specially tasked by law to settle administrative questions and disputes.
3. Conciliation/Preventive Mediation
Art. 238. Privileged communication.

Information and statements made at conciliation proceedings shall be treated as privileged
communication and shall not be used as evidence in the Commission. Conciliators and similar officials
shall not testify in any court or body regarding any matters taken up at conciliation proceedings
conducted by them.
Art. 260 (c) (d) (e). (supra on page 135)
Art. 218 A (c). Declaration of Policy.

It is the policy of the State:
(c) To foster the free and voluntary organization of a strong and united labor movement;
EO. 251 AMENDING CERTAIN SECTIONS OF EXECUTIVE ORDER NO. 126

WHEREAS, in order to make the on-going reorganization of the Department of Labor urgent demands
of national economic and Employment more responsive to the recovery and to promote efficiency and
effectiveness in the delivery of public services, it is vital that necessary and appropriate changes be
further introduced in its reorganization;
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NOW, THEREFORE, I, CORAZON C. AQUINO, President of the Philippines, do hereby order:
Sec. 1. Section 7 of Executive Order No. 126 is hereby amended to read as follows:
"Sec. 7. Office of the Secretary. The Office of the Secretary shall consist of the Secretary and his
immediate staff. In addition, there is hereby created in the Office of the Secretary a Joint RP-US Lab or
Committee Staff Unit which shall provide technical and other necessary services to the Philippine panel
in the Joint Labor Committee created under the RP-US Base Labor Agreement and for other special
projects. The Unit who shall be headed by a Head Executive Assistant who shall be assisted by five (5)
Staff Assistants."
"Sec. 18. Bureaus. The following staff bureaus of the Department are hereby retained and shall
continue to have the same functions, except as otherwise provided herein:
(a) Bureau of Local Employment;
(b) Bureau of Women and Minors, which hereby renamed as the Bureau of Women and Young
Workers;
(c) Bureau of Rural Workers;
(d) Bureau of Labor Relations, which shall continue to perform its present functions except those to be
absorbed by the National Mediation and Conciliation Board as provided under Section 29 (c) hereof;
and
(e) Bureau of Working Conditions."
"Sec. 20. Institute For Labor Studies. There is hereby created an Institute for Labor Studies, hereinafter
referred to as the Institute, which shall attached to the Department of Labor and Employment for
policy and program coordination and administrative supervision. The Institute shall absorb the
research and publication functions of the Institute of Labor and Manpower Studies which is hereby
abolished in accordance with Section 29(b) of this Executive Order. The Institute, to be headed by an
Executive Director, assisted by a Deputy Executive Director, shall have the following functions:
(a) Undertake research and studies in all areas of labor and manpower policy and administration.
(b) Review the rationale of existing legislation and regulations and analyze the cost involved in the
implementation of such legislation against the benefits expected to be derived;
(c) Study and develop innovative and indigenous approaches towards the promotion harmonious and
productive labor-management relations, and the improvement of workers' welfare services;
(d) Develop and undertake research programs and projects in collaboration with other national
agencies to enhance the Department's capability to participate in national decision and policy making;
(e) Enter into agreements with international or bilateral agencies for the carrying out of the foregoing
functions;
(f) Expand the scope of its research interests into other countries and regions;
(g) Publish its research studies for dissemination to government as well as to all concerned parties; and
(h) Perform such other functions as may be provided by law or assigned by the Secretary."
"Sec. 22. National Conciliation and Mediation Board. A National Conciliation and Mediation Board,
herein referred to as the "Board", is hereby created and which shall absorb the conciliation mediation
142 | P a g e
and voluntary arbitration functions of the Bureau of Labor of Relations in accordance with Section 29
(c) hereof. The Board shall be composed of an Administrator and two (2) Deputy Administrators. It
shall be an attached agency under the administrative supervision of the Secretary of Labor and
Employment.
The Administrators and the Deputy Administrators shall be appointed by the President upon
recommendation of the Secretary of Labor and Employment. There shall be as many Conciliators-
Mediators as the needs of the public service require, who shall have at least three (3) years of
experience in handling labor relations and who shall be appointed by the Secretary.
The Board shall have its main office in Metropolitan Manila and its Administrators shall exercise
supervision over Conciliators-Mediators and all its personnel. It shall establish as many branches as
there are administrative regions in the country, with a many Conciliator-mediators as shall be
necessary for its effective operation. Each branch of the Board shall be headed by an Executive
Conciliator-Mediator.
The Board shall have the following functions:
(a) Formulate policies, programs, standards, procedures, manuals of operation and guidelines
pertaining to effective mediation and conciliation of labor disputes;
(b) Perform preventive mediation and conciliation functions;
(c) Coordinate and maintain linkages with other sectors of institutions, and other government
authorities concerned with matters relative to the prevention and settlement of labor disputes;
(d) formulate policies, plans, programs, standards, procedures, manuals of operation and guidelines
pertaining to the promotion of cooperative and non-adversarial schemes, grievance handling,
voluntary arbitration and other voluntary modes of dispute settlements;
(e) Administer the voluntary arbitration program; maintain/update a list of voluntary arbitrations;
compile arbitration awards and decisions;
(f) Provide counselling and preventive mediation assistance particularly in the administration of
collective agreement; awards and decisions;
(g) Monitor and exercise technical supervision over the Board programs being implemented in the
regional offices; and
(h) Perform such other functions as may be provided by law or assigned by the Secretary.
A Tripartite Voluntary Arbitration Advisory Council is hereby created and attached to the National
Conciliation and Mediation Board. The Tripartite Voluntary Arbitration Advisory Council shall advise the
National Conciliation Board on matters pertaining to the promotion of voluntary arbitration as the
preferred mode of dispute settlement.
The Tripartite Voluntary Arbitration Advisory Council shall consist of the Administrator of the National
Conciliation and Mediation Board as Chairman, one other member from the government, two
members representing labor, and two other members representing management. The members shall
be appointed by the President to serve for a term of three (3) years. The Chairman and Members
thereof shall serve without compensation."
"Sec. 24. Regional Offices, District Offices and Provincial Extention Units. The Department is hereby
authorized to establish, operate and maintain such Department-wide Regional Offices, District Offices
and Provincial Extension Units in each of the administrative regions of the country, insofar as necessary
to promote economy and efficiency in the delivery of its services. Each Regional Office shall be headed
by a Regional Director who shall have supervision and control thereof. The Regional Director,
whenever necessary, shall be assisted by an Assistant Regional Director. A Regional Office shall have,
within its regional areas, the following functions:
143 | P a g e
(a) Implement laws, policies, plans, programs, projects, rules and regulations of the Department;
(b) Provide economical, efficient and effective service to the people;
(c) Coordinate with regional offices of other departments and agencies;
(d) Coordinate with local government units;
(e) Perform such other functions as may be provided by law or assigned by the Secretary."
Sec. 6. All laws, orders, issuances, rules and regulations or parts thereof inconsistent with this
Executive Order are hereby repealed or modified accordingly.
Sec. 7. This Executive Order shall take effect immediately.
DONE in the City of Manila, this 25th day of July, in the year of Our Lord, nineteen hundred and eighty-
seven.
Book V, Rule XXII, Section 1. Conciliation of labor-management disputes.

The board may, upon request of either of both parties or upon its own initiative, provide conciliation
mediation services to labor disputes other than notices of strikes or lockouts. Conciliation cases which
are not subjects of notices of strike or lockout shall be docketed as preventive mediation cases.
Book V, Rule XXII, Section 2. Privileged communication.

Information and statements given in confidence at conciliation proceedings shall be treated as
privileged communications. Conciliators and similar officials shall not testify in any court or body
regarding any matter taken up at conciliation proceedings conducted by them.
Book V, Rule XXII, Section 9. Action on Notice.

Upon receipt of the notice, the regional branch of the Board shall exert all efforts at mediation and
conciliation to enable the parties to settle the dispute amicably. The regional branch of the Board may,
upon agreement of the parties, treat a notice as a preventive mediation case.
It shall also encourage the parties to submit the dispute to voluntary arbitration.
During the proceedings, the parties shall not do any act which may disrupt or impede the early
settlement of the dispute. They are obliged, as part of their duty to bargain collectively in good faith
and to participate fully and promptly in the conciliation meetings called by the regional branch of the
Board.
A notice, upon agreement of the parties, may be referred to alternative modes of dispute resolution,
including voluntary arbitration.
144 | P a g e

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Block C 2016

Azores, Bahjin, Chua, De Guzman, Haynes, Leynes, Licaros

Good luck to you all.

A. Capital and Labor 6

B. Definition and Overview of Labor Relations 6

C. Labor Relations and its Goal 6

D. Seven Cardinal Rights of Workers 7

II. STATE POLICY 8

A. Trade Unionism, Definition of Trade Union Activities 8

C. Methods of Dispute Settlement 9

D. Machinery for Dispute Settlement 10

III. RIGHT TO SELF ORGANIZATION 26

A. Sources and Bases of the Right to Self-Organization 26

G. Non-Abridgment of Right and Sanctions for Violation of Right 42

IV. LABOR ORGANIZATION 45

C. Categories of Labor Organizations and Unions 46

D. Union Function and Rationale 49

E. Regulation of Labor Organization 50

F. International Activities of Union: Prohibition and Regulation 59

H. Union Chartering/Affiliation: Local and Parent Union Relations 71

V. THE APPROPRIATE BARGAINING UNIT 83

A. Definition and Role of Law 83

B. Determination of Appropriate Bargaining Unit 84

VI. UNION REPRESENTATION 87

A. Pre-condition: Employer-employee Relationship 87

B. Methods of Establishing Majority Status 87

C. Certification Election: Process 104

D. Certification of Designated Majority Union 124

E. Bars to Certification Election 126

F. Opposition; Suspension of Certification Election: Prejudicial Question 153

G. Effect of Petition for Cancellation of Trade Union Registration 154

VII. COLLECTIVE BARGAINING: CONCEPT, PROCEDURES AND ISSUES 133

A. General Concept 133

B. Duty to Bargain 135

C. Bargaining Procedure 161

B. Definition and Overview of Labor Relations

2. Overview of Labor Relations

C. Labor Relations and its Goal

1987 Constitution Art. 2, Section 5.

1987 Constitution Art. 2, Section 9.

1987 Constitution Art. 2, Section 10.

1987 Constitution Art. 13, Section 1.

1987 Constitution Art. 13, Section 2.

2. Protection to Labor; Balancing of Power

1987 Constitution Art. 2, Section 18.

1987 Constitution Art. 13, Section 3.

 Antamoc Goldfields Mining Co. v CIR (1940)

D. Seven Cardinal Rights of Workers

1987 Constitution Art. 13, Section 3. (supra on page 76)

1987 Constitution Art. 13, Section 3. (supra on page 76)

 University of Immaculate Concepcion, Inc. v. Sec. of Labor (2005)

II. STATE POLICY

Art. 218 A (b) (c). Declaration of Policy.

Art. 219 (g). Definitions

284 (a) par. 2 Regulation of foreign assistance.

Book V, Rule VI, Sec. 1. Policy.

Arts. 218 A (d) Declaration of Policy.

Art. 291 (a) Miscellaneous provisions.

 Victoria v. Inciong (1988)

C. Methods of Dispute Settlement

1987 Constitution Art. 13, Section 3. (supra on page 6)

Art. 218 A (a) Declaration of Policy.

Art. 3 Declaration of Basic Policy.

 Estate of Nelson R. Dulay v. Aboitiz Jebsen Maritime, Inc. (2012)