LABOR RELATIONS LAWS

I. Law on Labor Organization (Articles 234-246; 267-271)

II. Law on Collective Bargaining (Articles 250-259)

III. Law on Unfair Labor Practices (Articles 247-249)

IV. Law on Strikes, Picketing and Lockout (Articles 263-266)

V. Law on Settlement of Labor Disputes (Articles 213-225, 226-233, last 2

paragraphs, 260-262-B, 263(g), 277 (d) (i).

Labor relations laws, just like other labor laws under the Labor Code, are
enacted to implement the constitutional mandates1 on labor.

The elements of labor law are: (1) labor policies; (2) labor standards law;
and (3) labor relations law.

These elements of labor law are interrelated in that each is

complementary to the others.

Labor policies set the guidelines to be implemented by the other two.

Labor standards prescribe the limits in the terms and conditions of

employment, and are essentially substantive. Their purpose is protective
(e.g. law on hours of work, law on weekly rest period) or ameliorative (e.g.
minimum wage laws, law on holiday pay).

Labor relations laws provide the procedures that govern the methods
by which terms and conditions of work over and above the limits set by labor
standards may be obtained. Hence, they are largely procedural in character
(e.g. law on labor organizations, law on collective bargaining).

Labor standards, being fixed by law, may be found in the law itself,
while the terms and conditions beyond these standards obtained under labor
relations laws are not found in the law itself, but in the collective bargaining
agreements, arbitration awards and decisions.

Individual rights of workers vis-à-vis collective rights of labor.

The INDIVIDUAL RIGHTS of WORKERS are found in Article III, Bill of

Rights, while the COLLECTIVE RIGHTS of LABOR in general are found in the
Protection to Labor Clause in Article XIII, Section 3, of the 1987 Constitution.
These two sets of rights are NOT IDENTICAL. In fact, they may, in certain
instances, possibly conflict with each other.

INDIVIDUAL RIGHTS OF WORKERS

1. Right to due process

2. Freedom of expression
3. Freedom of association
4. Non-impairment clause
1
Article XIII, Section 3 of the 1987 Constitution; Article XIII, Section 14, supra; Article XII, Section 18,
supra;

1
 5. Free access to courts and quasi-judicial bodies
6. Right to speedy disposition of cases
7. Right against involuntary servitude

COLLECTIVE RIGHTS OF LABOR

1. Right to self-organization
2. Right to collective bargaining negotiation
3. Right to peaceful concerted activities, including the right to strike in
accordance with law
4. Right to security of tenure
5. Right to humane conditions of work
6. Right to a living wage
7. Right to participate in policy and decision making

UNFAIR LABOR PRACTICES (ULPs)

Concept – ULPs VIOLATE the CONSTITUTIONAL RIGHT of workers and

employees to SELF-ORGANIZATION, are INIMICAL to the LEGITIMATE
INTERESTS of BOTH labor and management, including their RIGHT TO
BARGAIN COLLECTIVELY and otherwise deal with each other in an atmosphere
of freedom and mutual respect, disrupt INDUSTRIAL PEACE, and hinder the
promotion of healthy and stable labor-management relations.

Consequently, ULPs are (1) violations of the CIVIL RIGHTS of both labor
and management, and (2) also CRIMINAL OFFENSES against the State, which
shall be subject to prosecution and punishment. (Art. 247, LC).

ULP ACTS EXCLUSIVE TO LABOR ORGANIZATIONS

1. “FEATHERBEDDING” – 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 a fee for union negotiations. (Art.
249 [d], LC)

A QUALIFIED ULP; VIOLATION OF A CBA

Arts. 248 and 249 of LC impute as ULP for either party to violate the CBA.
However, this is QUALIFIED because VIOLATIONS of a CBA is no longer treated
as ULP but GRIEVANCES to be resolved under the grievance machinery of the
CBA, EXCEPT those violations which are GROSS in CHARACTER. A GROSS
VIOLATION of the CBA means FLAGRANT and/or MALICIOUS REFUSAL to
comply with the ECONOMIC PROVISIONS of the CBA.

Thus, charges of CBA violation are to be resolved through the

GRIEVANCE MACHINERY of the CBA and, if still unresolved, to VOLUNTARY
ARBITRATION. Only those CBA violations deemed GROSS by definition fall
within the JURISDICTION of the LABOR ARBITERS and the NLRC.

The purpose of this change or qualification is to remove ULP cases from

the compulsory arbitration process and to course them instead to the voluntary
mode. This is in keeping with express preference of the Constitution for voluntary
modes in the resolution of industrial disputes. (Art. III, Sec. 3, Constitution).

2
UNION RULES AND SECURITY CLAUSES

The Labor Code recognizes the RIGHT of a UNION to secure agreement

regarding UNION SECURITY. (Art. 248, LC) and to prescribe its own rules with
respect to acquisition or retention of membership (Art. 249 [a], LC). These acts
are not considered ULPs.

Art. 248 [e] of LC provides for a “CLOSED-SHOP AGREEMENT”, which

may be defined as “an agreement whereby an employer binds himself to hire
only members of the contracting union who must continue to remain members in
good standing to keep their jobs. (PRC v. Garcia, et al., 124 Phil. 698). The
rationale of the closed-shop agreement is the INHERENT RIGHT TO SELF-
PRESERVATION of every union.

The EXCEPTION to “closed-shop agreement” pertains to employees who

are ALREADY members of ANOTHER UNION at the signing of the CBA
containing the “closed-shop agreement”. But not those employees who are not
members of any union, who may be obliged to join the contracting union for their
continued employment. (Juat v. CIR, 15 SCRA 395).

WHEN IS A STRIKE ILLEGAL?

There are at least six (6) categories of an illegal strike:

1. when it is contrary to a SPECIFIC PROHIBITION OF LAW, such as strike

by employees performing governmental functions;

2. when it violates a SPECIFIC REQUIREMENT OF LAW, such as Art. 263

of the LC on the requisites of a valid strike;

3. when it is declared for an UNLAWFUL PURPOSE, such as inducing the

employer to commit ULP against non-union employees;

4. when it is employs UNLAWFUL MEANS in the pursuit of its objective, such

as widespread terrorism of non-strikers (for example, prohibited acts
under Art. 264 (e), LC);

5. when it is declared in VIOLATION OF AN EXISTING INJUNCTION, such

as injunction, prohibition or order issued by the DOLE Secretary and the
NLRC under Art. 263 of the LC;

6. when it is contrary to EXISTING AGREEMENT, such as a no-strike clause

or conclusive arbitration clause;

WHAT ARE CONSIDERED ILLEGAL ACTS UNDER ART. 264 (a) of the LC?

No precise meaning is given to the phrase “ILLEGAL ACTS”. It may

encompass a number of acts that violate existing labor or criminal laws such as
the following:

1. Violation of Art. 264 (e) of the LC which provides that “no person engaged
in picketing shall commit any act of violence, coercion or intimidation or

3
 obstruct the free ingress to or egress from the employer’s premises for
lawful purposes, or obstruct public thoroughfares;

2. Commission of crimes and other unlawful acts in carrying out the strike;
and

3. Violation of any order, prohibition, or injunction issued by the DOLE

Secretary or NLRC in connection with the assumption of
jurisdiction/certification Order under Art. 263 (g) of the LC.

PROHIBITED ACTIVITIES IN STRIKES AND LOCKOUTS (Art. 264, LC)

1. No strike or lockout without FIRST having bargained collectively or without

FIRST having complied with the procedural requirements required by law;

2. No strike or lockout AFTER assumption of jurisdiction by the President or

the Secretary, or AFTER certification or submission of the dispute to
compulsory or voluntary arbitration or DURING the pendency of cases
involving SAME GROUNDS for the strike or lockout;

3. No person shall obstruct, impede or interfere with by force, violence,

coercion, threats or intimidation any PEACEFUL PICKETING by
employees during any controversy or in the exercise of the right to self-
organization or collective bargaining shall aid or abet such obstruction or
interference;

4. No employer shall use or employ any STRIKE-BREAKER, nor shall any

person be employed as a strike-breaker;

5. No public official or employee, including officers and personnel of the AFP

or the PNP, 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;

6. 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.

ART. 263 (g) of the LC is MEANT to make the DOLE Secretary (or Regional
Director) and Labor Arbiters SHARE JURISDICTION, subject to certain
conditions. Neither the Labor Arbiter nor the NLRC could review the SAME
ISSUES passed upon in an ASSUMED CASE, and their decisions to the contrary
are rendered in grave abuse of discretion amounting to excess of jurisdiction.
(Reformist Union of R.B. Liner Inc. v. NLRC, 266 SCRA 713). Art. 217 of the LC
contemplates exceptions thereto. This is evident from its opening proviso which
reads “except as otherwise provided under this Code.” (International
Pharmaceuticals v. NLRC, 205 SCRA 59).

CONSEQUENCES OF ILLEGAL STRIKES AND LOCKOUTS (ART. 264)

1. ILLEGAL LOCKOUT
Reinstatement of employees with full backwages

2. ILLEGAL STRIKE

The LAW makes a DISTINCTION between Union members and Union

Officers.

4
 a) Union Officers – For KNOWINGLY participating in an ILLEGAL
STRIKE or KNOWINGLY PARTICIPATING in the commission of
ILLEGAL ACTS during a strike, a union officer MAY be DECLARED
to have LOST his EMPLOYMENT STATUS, that is, he MAY be
TERMINATED from employment. The LAW grants the EMPLOYER
the OPTION of declaring a union officer who participated in an
illegal strike or committed illegal acts during a strike as HAVING
LOST HIS EMPLOYMENT STATUS. The employer possesses the
right and prerogative to terminate the union officers from service.

b) Union Members – A worker merely participating in an ILLEGAL

STRIKE may not be terminated. It is ONLY when he COMMITS
ILLEGAL ACTS during a strike that he may be declared to HAVE
LOST HIS EMPLOYMENT STATUS.

RULE ON BACKWAGES

1. General Rule – When employees VOLUNTARILY go on STRIKE, even if

in protest against ULP, NO BACKWAGES during the strike.

2. EXCEPTIONS to NO BACKWAGES RULE:

a. When the employees are ILLEGALLY LOCKOUT to thus compel

them to strike;
b. When the employer is GUILTY of GROSS FORM OF ULP;
c. When the employer committed DISCRIMINATION in rehiring of
strikers refusing to re-admit those against whom there were
pending criminal cases while admitting non-strikers who were also
criminally charged in court;
d. When the workers who staged a voluntary ULP strike OFFERED to
return to work UNCONDITIONALLY but the employer refused to
reinstate them.

IV. RIGHT TO SECURITY OF TENURE

Tenure in employment means the right to continue in employment until the

same is terminated under conditions required by law. (Palmeria v. NLRC, 247
SCRA 57).

V. RIGHT TO HUMANE CONDITIONS OF WORK

This collective right ensures that working conditions take into account the
HEALTH, SAFETY and WELFARE of workers. The Labor Code is replete with
provisions that address this concern, i.e. Book IV, Title III of Book III.

Under Article 128 [c] of the Labor Code, the Secretary of Labor is
empowered to order stoppage of work or suspension of operations of an
establishment when non-compliance with the law poses grave and imminent
danger to the health and safety of workers in the workplace.

VI. RIGHT A LIVING WAGE

The right to a living wage is a NEW RIGHT granted by the Constitution.

The term LIVING WAGE does not refer only to the worker but also to his
FAMILY, and the intent is to provide the means whereby a worker can secure the

5
health, decency, well being and an improved quality of life for his family. The right
is, therefore, imbued with social justice implications.

VII. RIGHT TO PARTICIPATE IN POLICY AND DECISION-MAKING

The Constitutional provision does not establish this right as the provision
is not self-executory, needing a legislation or corresponding law to establish such
right.

This right is established under R.A. No. 6715, which took effect on 2
March 1989.

STRIKE
1.Notice of Strike (filed by CBA/RBA or LO, in case of union busting)

2. Cooling –off period

a.) BDs-30 days before the intended date of strike
b.) ULP-15 days
c.)Union Busting (Dismissal of union affairs) – 15 day cooling-off period
does not apply. The cooling-off period is dispensed with but the notice of
strike, strike vote, reporting of strike vote results and 7-day strike ban must
be complied.

3. Strike vote by secret ballot (double Majority)

a.)Majority of the total union members in the BU
b.)Majority of the BOD of corporation or BOT of Association or of partners
holding controlling interest.

4.Strike Vote Results reported to NCMB

5.7-day strike ban

6. Strike
a.)SOLE-Assumption of jurisdiction or certification for compulsory
arbitration by NLRC (AJO or COCA)
b.)If there is already a strike-RTWO, under the same terms and condition
prior to strike (status quo ante:the state of thins as it was before)
c.)In case of hospitals, clinics and medical institutions AJO or COCA within
24 hours from-knowledge of strike or occurrence of strike
d.)Resolution of Secretary, NLRC or Voluntary Arbitration 30 days