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Coverage and employees’ right to self- controversy or in the exercise of the right to self-
organization. All persons employed in commercial, organization or collective bargaining, or shall aid or
industrial and agricultural enterprises and in religious, abet such obstruction or interference.
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
No employer shall use or employ any strike-breaker,
organizations of their own choosing for purposes of
nor shall any person be employed as a strike-breaker.
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. No public official or employee, including officers and
personnel of the New Armed Forces of the Philippines
Notes: or the Integrated National Police, or armed person,
shall bring in, introduce or escort in any manner, any
1. Rights to self-organization includes:
individual who seeks to replace strikers in entering or
- Right to form, join or assist labor
leaving the premises of a strike area, or work in place
organizations
of the strikers. The police force shall keep out of the
- For the purpose of collective bargaining
picket lines unless actual violence or other criminal acts
- Through representatives of their own
occur therein: Provided, That nothing herein shall be
choosing
interpreted to prevent any public officer from taking any
- And to engage in lawful concerted activities
measure necessary to maintain peace and order,
for the same for the same purpose
protect life and property, and/or enforce the law and
- Or for their mutual aid and protection, subject
legal order. (As amended by Executive Order No. 111,
to the provisions of Art. 264 (now 279)
December 24, 1986)
During the conciliation proceedings in the Board, the Second sentence of Art. 255 of the Labor Code
parties are prohibited from doing any act which may embodies an amendment disqualifying supervisory
disrupt or impede the early settlement of the disputes; employees from membership in a labor organization of
and the rank-and-file employees, but it does not include
security guards in the disqualification.
The Board shall exert all efforts to settle disputes
amicably and encourage the parties to submit their Under the old rules, security guards were barred from
case to a voluntary arbitrator. joining a labor organization of the rank-and-file, under
the present law, they may now freely join a labor
3. Principle of union autonomy (freedom organization of the rank-and-file organization, are null
from government interference) and void for not being germane to the object and
purposes.
General rule:
e. Employees under Art. 219 (f) 212 (f) of the
Labor Code, it shall include any individual
whose work has ceased as a result of or in k. Alien employees with valid working permits
connection with any current labor dispute or issues by the Department of Labor and
because of any unfair labor practice if he has Employment may exercise the right to self-
not obtained any other substantially organization and join or assist labor unions for
equivalent and regular employment. purposes of collective bargaining if they are
nationals of a country which grants the same
Art. 292 (c ) 277 (c ) provides that “Any employee, or similar rights to Filipino Workers, as
whether employed for a definite period or not, shall, certified by the Department of Foreign Affairs,
beginning on his first day of service, be considered as or which has ratified ILO Convention No. 87
an employee for purposes of membership in any labor and ILO Convention No. 98.
union. This refers also to rank-and-file employees
whose functions are neither managerial nor l. The working children have also the right to
supervisory in nature. join the collective bargaining union of their
own choosing in accordance with the existing
f. Employee – non-member of a cooperative
law.
While employees who are at the same time members
of a cooperative cannot join labor unions for purposes Under P.D. 603, it is provided that neither the
of collective bargaining, they are not, however, management nor any collective bargaining
prohibited from withdrawing their membership in the union shall threaten or coerce working
cooperative in order to join a labor union. children to join, continue or withdraw as
member of such union.
Public policy provides that the right to self-organization
be accorded the highest consideration, employee non-
members can join a labor union.
m. Confidential employees who assist and act in
g. The homeworkers have the right to form, join, a confidential capacity or have access to
or assist organizations of their own choosing confidential matters, of persons who exercise
in accordance with law. The registration of managerial function in the field of labor
homeworkers’ organizations or associations relations are disqualified to form or join a
that complied with the requirements of law, union.
will vest legal personality thereto.
However, if the access to confidential labor relations
information is merely incidental in the performance of
h. Employees of a legitimate independent
their functions, they do not have to be treated as
contractor or subcontractor are entitled to all
confidential employees; thus, they are eligible and
the rights or privileges due a regular
have the right to form or join a union.
employee under the Labor Code which
includes the right to self-organization, Another instance is when the confidential employee
collective bargaining and peaceful concerted does not have access or is not allowed to access to
action. confidential labor relations information, there is no legal
prohibition against them from forming, assisting, or
i. The right of members of the Iglesia ni Kristo joining a union.
sect not to join a labor union for being contrary
to their religious beliefs does not bar the 5. Excluded from the coverage and
members of that sect from forming their own employees’ right to self-organization
union for the recognition of the tenets of the
sect should not infringe on the basic right to The following are excluded from exercising the right to
self-organization granted by the Constitution self-organization:
to workers regardless of religious affiliation.
a. An employee of a cooperative who is a
member and co-owner thereof cannot invoke
j. Rights to employees in the public service.
the right to collective bargaining for certainly,
Employees of government corporations
an owner cannot bargain with himself or is co-
established under the Corporation Code shall
owners.
have the right to organize and to bargain
collectively with their respective employers. However, insofar as it involves cooperatives with
All other employees in the civil service shall employees who are not members or co-owners thereof,
have the right to form associations for certainly such employees are entitled to exercise the
purposes not contrary to law. (Art. 254 (244)) rights of all workers to organization, collective
bargaining, negotiations and others as are enshrined in Article 244 (254). Right of employees in the public
the Constitution and existing laws of the country. service. Employees of government corporations
established under the Corporation Code shall have the
b. Confidential employees (such a division right to organize and to bargain collectively with their
secretaries, staff general management, staff respective employers. All other employees in the civil
of personnel department, secretaries of audit, service shall have the right to form associations for
EDP, financial systems) are ineligible to form, purposes not contrary to law.
assist, or join a labor union because by the
nature of their functions, they assist and act in 1. State policy on the right to self-
a confidential capacity to, or have access to organization in the public (government)
confidential matters, of persons who exercise sector
managerial functions in the field of labor
relations, and the union might not be assured it is the policy of the State to:
of their loyalty in view of evident conflict of
1. Promote the free and responsible exercise of
interests.
the right to organize by
By the nature of their function, legal secretaries shall - All employees in national gov’t agencies and
fall under the category of confidential employees. their regional offices
- Attached agencies and their regional offices
Confidential employees performing managerial - State universities and colleges
functions cannot join unions. They are disqualified by - GOCCS with original charters
applying the doctrine of necessary implication. - LGUs
2. Through a simplified mechanism for
c. Managerial employees refer to an employee - the speedy registration or employees
who is vested wit powers or prerogatives to organizations
lay down and execute management policies - determination of representation status
or to hire, transfer, suspend, layoff, recall, - resolutions of intra and inter-employees’
discharge, assign, or discipline employees. organization disputes.
3. Only accredited employees’ organizations
shall have the right to represent the rank-and-
d. An alien employee cannot exercise his right to file employees in collective negotiation and for
self-organization, if the following requisites the furtherance and protection of their interest
are not complied with: and improvement of public service delivery.
As now provide under Sec. 4, Rule III of the Rules and 3. Types of managerial employees;
Regulations to Govern the Exercise of the Right of designation reconciled with actual job
Government Employees to Self-Organization, which description; exercise of independent
took effect after the instant dispute arose: judgment
“the terms and conditions of employment in the The following are three (3) type of managerial
government, including any political subdivision or employees;
instrumentality thereof and government-owned and
controlled corporation with original charters are a. Top managers
governed by law and employees therein shall not strike - Have the authority to device, implement and
for the purpose of securing changes thereof. control strategic and operational policies of
the company.
12. Employees of international organizations - The president, CEO
may join a union but not for the purposes
of collective bargaining. b. Middle managers
- Responsibility is to see to it that the operating
The Philippines Government has granted them policies are put into action by other managers
immunity from local jurisdiction. under him.
c. First-line managers
There is no legal prohibition for such employees to join
- Lowest in the rank where task is simply to
a union but not for purposes of collective bargaining for
ensure that such policies are carried out by
this may cause an international organization to be
the rank-and-file employees of an
involved in a legal process which is the evil sought to
organization.
be prevented by the grant of immunity.
Managerial employees may fall into (2) distinct
13. Certification election barred by the grant
categories:
of functional immunity (p.200)
a. The managers per se composed of top and
Article 245. Ineligibility of managerial employees to join
middle managers
any labor organization; right of supervisory employees.
b. The supervisors composed of first-line
Managerial employees are not eligible to join, assist or
managers
form any labor organization. Supervisory employees
shall not be eligible for membership in a labor Designation should be reconciled with the actual job
organization of the rank-and-file employees but may description of the employee for it is the job description
join, assist or form separate labor organizations of their that determines the nature of the employment.
own. The rank-and-file union and the supervisors’
union operating with the same establishment may join Although subject section heads and unit managers
the same federation or national unions. exercise the authority to hire and fire, the authority they
exercise is merely advisory in character. There is not a
1. Concept of managerial employee final determination of the company policies inasmuch
as any action taken by them on matters relative to
A managerial employee is one who is vested with
hiring, promotion, transfer, suspension and termination
powers or prerogatives to lay down and execute
of employees is still subject to confirmation and
management policies and/or to hire, transfer, suspend,
approval by their respective superior.
lay-off, recall, discharge, assign or discipline
employees. Where such power, recommendatory in character, is
subject to evaluation, review and final action by the
Managerial employees are limited to those having the
department heads and other executives of the
authority to hire and fire.
company, the same, although present, is not effective implication, confidential employees are similarly
and not an exercise of independent judgment as disqualified.
required by law.
This doctrine states that what is implied in a statute is
4. Confidential employee rule as much a part thereof as that which is expressed.
A confidential employee may be rank-and-file or It is the nature of an employees’ functions and not the
supervisory employee but because in the normal nomenclature or title given to his job which determines
course of his duties, he becomes aware of whether an employee is managerial or not. Among the
management policies relating to labor relations, he is characteristics of managerial rank are:
not allowed to assist, form or join a rank-and-file
employee or supervisory union. a. He is not subject to the rigid observance of
regular office hours;
His exclusion from the bargaining unit is justified under b. His work requires the consistent exercise of
the “confidential employee rule.” independent judgment and discretion in its
performance;
6. Not a confidential employee; access to c. The output produced or the result
confidential labor relations information; accomplished cannot be standardized in
merely incidental relation to a given period of time.
d. He manages a customarily recognized
If the access to confidential labor relations information
department or subdivision of the
is merely incidental in the performance of their
establishment; customarily and regularly
functions, they do not have to be treated as confidential
directing the work of other employees therein.
employees; thus they are eligible and have the right to
e. He either has the authority to hire or discharge
form or join a union.
other employees or his suggestions and
Therefore, access to information which is regarded by recommendations as to hiring and
the employer to be confidential from the business discharging, advancement and promotion or
standpoint, such as financial information or technical other change of status of other employees are
trade secrets, will not render an employee a given particular weight.
confidential employee. f. As a rule, he is not paid hourly wages nor
subjected to maximum hours of work.
7. Doctrine of necessary implication
In order that the power to recommend may qualify an
Doctrine of necessary implication is the legal employee as a managerial employee, it must not only
justification of confidential employee’s exclusion from be effective but the exercise of such authority should
exercising his right to self-organization. not be merely of a routinary or clerical nature but
should require the use of independent judgment.
While Art. 266 of the Labor Code singles out
managerial employees as ineligible to join, assist or The test of supervisory or managerial status depends
form any labor organization under the necessary on whether a person possesses the authority to act in
the interest of his employer and whether such authority
is not merely routinary or clerical in nature, but requires The separation of union doctrine prohibits a situation
the use of independent judgment. where the supervisory union and the rank-and-file
union operating within the same establishment are both
9. Managerial employees are not eligible to affiliated with one and the same federation or national
join a union. union because of the possible conflict of interest which
may arise in the areas of discipline, collective
10. Doctrinal rulings on those bargaining and strike.
allowed/prohibited to join, form or assist a
labor organization. However, with the amendment of Art. 255 by R.A.
9841, the law now allows a rank-and-file union and a
a. Prohibiting managerial employees to self- supervisors’ union operating within the same
organize extends to confidential employees – bargaining unit to join the one (1) and the same
Art. 250 of the Labor Code limits the federation or national union.
ineligibility to join, form and assist any labor
organization to managerial employees. It was held in Adamson & Adamson that the unions
Jurisprudence has extended its prohibition to formed independently by the supervisory and rank-
confidential employees. and-file employees in a company may legally affiliate
b. Accounting personnel, radio and telegraph with the same federation.
operators having access to confidential
Article 245-A. Effect of inclusion as members of
information are confidential employees
employees outside the bargaining unit. - The inclusion
because they may become the source of
as union members of employees outside the
undue advantage. Said employees may act
bargaining unit shall not be a ground for the
as a spy or spies of either party to a collective
cancellation of the registration of the union. Said
bargaining agreement.
employees are automatically deemed removed from
c. Branch managers, cashiers and controllers
the list of membership of said union.
are confidential employees, having control,
custody and/or access to confidential matters. 1. Inclusion as members of employees
outside the bargaining unit; its effect
a. Form a union
b. Take part in its formation
c. Join or assist a union of their own choosing
for the purpose of
d. Collective bargaining and negotiations
e. Engage in concerted activities for mutual aid
and protection.