Labor Code 2 Reviewer-Finals Effect without the assistance: INVALID CA

Note: Even compromise settlements on labor

standards[…] is allowed (page 161, Azucena)

Title III
Assumption of NLRC and the Courts
BUREAU OF LABOR RELATIONS
General: No Assumption

Exception:
Article 232 Bureau of Labor Relations 1. Noncompliance of CA

2. Prima Facie evidence that the settlement

BLR Jurisdiction and Functions was obtained through Fraud,
• Own initiative/Upon Request of either/both Misrepresentation, or coercion

parties:

• Union Matters

• Collective Bargaining Registry

Formal Requirements of CA
• Labor Education

Union of Filipino Workers vs NLRC

How many days to act on labor cases? (March 23, 1992)
• 15 Days

Compromise Agreements involving labor

Terms:
standard cases:
Inter-Union Dispute- conflict between and • Written and Signed
among Legitimate Labor unions
• In the Presence of the Regional Director or
his duly authorized representative
Intra-Union Dispute- conflict between and
• Also, if an agent/legal counsel, Art 1878 of
among union members

the Civil Code requires Special Power of

Authority
Extent of BLR Authority
• Broad and Expansive; Inter and Intra
disputes;

• may hold a referendum election to Quitclaim Doctrines

determine the members’ desire to be
affiliated
When not Valid:
No Authority Pampanga Sugar Development vs CIR
• to hold a referendum to decide w to expel/ (114 SCRA 725)
suspend union officers

• to forward a case to the Trade Union “While rights maybe waived, the same must
Congress of the Philippines for arbitration not be contrary to law, public order, public
decision
policy, morals or good customs or prejudicial
to a third person with a right recognized by
Conciliation and Mediation Proceedings law.” (Article 6, Civil Code)
• Not Katarungang Pambarangay

• Only Bureau and its divisions

When Valid:
Veloso and Liguaton vs DOLE
Article 233 Compromise Agreements
(Aug 5, 1991 GR No 87297)
Constitution and the Code:
Guarantee the right of the parties to free “Dire necessity is not an acceptable ground
bargaining and negotiations
for annulling the releases, especially since it
has not been shown that the employees had
Basic Requirement: been forced to execute them.”
• Assistance of the BLR and;

• Regional Offices of the DOLE

How?
• Entered Freely

Labor Reviewer BUKSU LAW Wu

 Article 235 Issuance of Subpoenas
• Made with the knowledge and Approval of
DOLE

Who: Bureau

• No Deception on the part of the ER

What: Power to require the appearance of

any person/ production of any paper relevant
When Executed by EEs: to the dispute

• The EE executes the deed of quitclaim How: Request of a party/its own initiative

voluntarily
Article 236 Appointment of Bureau
• No Fraud/Deceit on both parties
Personnel
• Consideration is Credible and reasonable

• Contract is not contrary to law, public Who: Secretary of DOLE appoints

order, public policy, morals or good

customs, or prejudicial to a third person
Article 237 Registry of Unions and File of
with a right recognized by law

Collective Agreeements

When can CA be done? Where: The Bureau will keep a registry of

• At ANY STAGE of the proceedings
LLOs and files of all CBAs, records of
settlement of labor disputes, and decisions
Magbanua vs Uy of LAs

“A compromise agreement covering a case

which is either pending trial, or on appeal, or General: Files shall be open an accessible to
with final judgment, is allowed and valid, interested parties except those submitted in
assuming that the elements of a valid confidence

contract are present” Exception:

• Unless authorized by the Secretary

• An issue in any judicial litigation

ELEMENTS of Valid CA: (Magbanua vs Uy) • Public interest or National Security requires

1. Voluntarily, Freely, and Intelligently

executed by the parties
How to Register:
2. Full Knowledge of the judgement
1. Parties shall submit within 30 days of
3. Not contrary to law, morals, good execution

customs and public policy

2. Copies of their CBA

3. To the BLR/Regional offices of DOLE

When CA is Violated:

• Enforcement of compromise thru Writ of NOTE: Registration of CBA and Certification

Execution
of BLR not a requisite for its validity.

• Regard it as Rescinded
Once duly entered into and signed, CBA
• Insist upon original demand
becomes effective!

Article 234 Mandatory Conciliation and However, registration is needed so

Endorsement contract-bar rule may come into play

What: All issues arising from labor and Article 238 Prohibition on Certification
employment
Election
Who: Any or both parties involved in the Contract-Bar Rule: There is an existing
dispute may terminate the C-M proceedings
valid and registered CBA. Thus, the Bureau
Aim: Speedy and Inexpensive assistance in cannot hold an election contesting the
any kind of labor issue/conflict
majority status of the incumbent union.

Existence of CBA does not allow the holding

of the inter-union electoral contest.

Labor Reviewer BUKSU LAW Wu

Election only allowed only during “FREEDOM Changes:
PERIOD”
1. No required number- local chapter
registrable even if initial membership is
Freedom Period: The last 60 Days of the less than 20%; 20% only applies only
fifth year of a CBA
Independent Union

2. Tentative Legal Personality- after

Article 239 Privileged Communication getting certified, LO acquires legal
personality; will be able to file a petition
• Any information/statements during for CE; Files to be Submitted:

conciliation proceedings shall be treated as • Names and Addresses of the officers and
privileged communications
members of Union

• Cannot be used as evident in the • Chapter’s constitution and by-laws

Commission
• Must be certified under oath by the Sec/
• Conciliators and similar officials shall not Treasurer and attested by the President

testify in court proceedings

3. Grounds of Cancellation
Title IV 1. Falsehood about the CBL

Labor Organization 2. Falsehood about the Election of

officers

Chapter I 3. Voluntary Dissolution

Registration and Cancellation

4. Cancellation by Action of the Members
Article 240 Requirements of Registration • A vote of 2/3 of the membership plus an
application to cancel submitted by the
board and attested by the president

Who: Federation, National Union/Industry/

Trade Union Center/Independent Union

5. PCE Proceeds Despite Petition to

What: Shall acquire legal personality; shall
have rights and privileges granted by law
Cancel union Registration
When: Upon issuance of the certificate of • Petition to Cancel doesn’t revent filing/
hearing of a petition for CE

registration

6. Reportorial requirements: 4 DOCS

Requirements:
A. Constitution and By Laws (CBL)

• Fifty pesos Fee

B. Election for Officers; list of voters to
• Names of its officers/addresses, minutes of be submitted within 30 days

meetings

C. Annual financial reports within 30

• Independent Union: names of all its days from close of fiscal year

members at least 20%; not needed for D. Annual list of members

Local/Chapter registration

• Existed for more than a year: copies of 7. Affiliation with Same Federation
its annual financial reports

• Supervisors’ union and rank and file

• 4 copies of the constitution and by-laws of union in same company may affiliate with
the applicant union, minutes or ratification same federation

and the list of the participant members

8. Commingling
Article 241 Chartering and Creation of a
• Commingling Sups and rank and file is
Local Chapter not a ground to cancel union registration;
Exludible member is automatically
Amended by RA 9481 removed

An Act Strengthening the Workers’

Consitutional Right to Self-Organization

Labor Reviewer BUKSU LAW Wu

9. Non-Disclosure of Identity • Exclusive Bargaining Rep- legitimate
• The federation who files a Petition for labor union duly recognized/certified as the
Certification Election (PCE) can’t be sole and exclusive bargaining agent (SEBA)

required to identify the chapter’s officers • NOTE: Not every LLO is an EBR; But An
and members
EBR has to be an LLO. Ergo, To be an
• PCE need not be filed by local officers
EBR, union has to be registered/certified
by DOLE.
10. Non Disclosure even in Ununionized • Association- an association of workers
Company organized for the mutual aid and protection
• Non disclosure rules applies also to of its members or for legit purposes other
federation that files a PCE
than CB

• Legitimate Workers’ Association- same

11. Employer, a Bystander as above but registered

• ER is a bystander and has no right to

oppose the petition
Collective Bargaining vs Dealing with ER
• Limited to being informed about the CB- right acquired after registration and
petition and being required to submit the certification as the EBR of the EEs

list of employees if a CE will e held.

Dealing with ER- generation description of

interaction between ER and EEs concerning
Article 242 Action on Application grievances, wages, work hours and other T
Who: The Bureau acts on all application for and C of Employment even wo registration.

registration

Duration: Within 30 Days

NOTE: Workers may form an organization
wo the formality and rigidity of a union; labor
mgt committee/work council

Article 243 Denial of Registration; Appeal Classification of Labor Organizations

What: Denial of registration by the Labor National Level (Macro-Labor Relations):

Relations Division may be appealed by the National union/Federation- any LO with at
applicant union to the Bureau
least 10 locals/chapters/affiliates; certified/
Duration: Within 10 days upon receipt of recognized

notice

Industry Union- any LLO operating within an

Article 244 Additional Requirements for identified industry, organized for CB/for
Federations Dealing with employers concerning T and C

• Proof of affiliation of at least 10 locals or

chapters with CB agent
Trade Union Center- group of national
• Names and Addresses of the companies unions/federations organized for mutual aid
where the locals/chapters operate; list of and protection of its members

members

Alliance- aggregation of unions existing in

Article 240-244 one line of industry

Definition:
• Labor Organization- any union or assoc Enterprise Level (Micro-Labor Relations):
of employees in private sector which exists Independent- by independent registration
in whole or in part for the purpose of Chapter- by federation or national union
collective bargaining
through chartering

• Union- any LO in the private sector

organized for collective bargaining and for Independent registration- through their
other legit purposes
own action; has legal personality of its own
• LLO- any LO in the private sector not derived from a federation; may also be
registered or reported with the Department
affiliated with a federation/national union

Labor Reviewer BUKSU LAW Wu

 Independent Labor Union
Chartering- dully registered federation (NaM20FiC)
issues a charter to a union in an enterprise 1. Name, Add, name of officers and their
and registers the creation of the chapter with adds of the union; approx num of EES

the Regional Office where the applicant 2. Minutes of organizational meetings

operates
3. Names of members at least 20% of the
EEs in the bargaining unit

Company Union- LO in whole or in part is 4. Financial Reports; if existed for >1yr

ER-controlled or ER-dominated (Art 259 5. CBL

prohibits being a company union)

Workers Association
Why Register?
(NaMFiC)
• An LO may be registered or not

1. Name, Add, name of officers and their

• If registered; LLO
adds of the union

• If unregistered; still a lawful organization 2. Minutes of organizational meetings

and can deal with ER but has not legal

personality to demand collective 3. Financial reports

bargaining with the ER; cannot file for PCE/ 4. CBL

request a preventive mediation, or hold a

strike
Chartered Local
• Union created through chartering is called
Effect of Registration Under Corp Law local, chapter, or a chartered local

• LO as a nonstock corporation and issued a

certificate of incorporation by the SEC
Chartered Local has to be Registered;
• Incorporation gives it juridical personality
Requirements
• Incorporation doesn’t grant the rights and • Federation/National Union directly creating
privileges of an LLO
a charted local should submit to the
Regional Office two copies of the following:

Where to Register? • (ChaNC)

• Regional Office where the applicant 1. Charter Certificate

principally operates
2. Names of Local chapter’s officers,
• If more than one region; with the Bureau or Adds, and principal office of the local

the Regional offices; and shall be process 3. CBL

and acted upon by the Bureau which has

national jurisdiction
Submission of Confirming Documents:
• If no submission of additional docs,
Requirements: chapter isn’t entitled to all other rights and
privileges of an LLO

Federation or National Union • Required to be submitted within 30 days in

(NaMFiCAN) support of its application for registration to
1. Name, Add, name of officers and their become LL

adds of the union

• Med Arbiter may dismiss the PCE if union
2. Minutes of organizational meetings
is not listed in DOLE’s registry of legit
3. Financial reports
unions or failure to attach a duly issued
charter cert

4. CBL

5. Affiliation of at least 10 LLO

Note: Trade union Cannot Create a Chapter

6. Names and Adds of companies of
affiliates; and list of members

When does a Chapter become an LLO?

• Shall be deemed registered and valid and
vested with legal personality on the date of

Labor Reviewer BUKSU LAW Wu

 issuance of its certificate of registration
disaffiliate. This was clearly stated in the
or cert of creation of chartered local

CBL. Hence, the dismissal was not justified.

Withdrawal by Members
Before Application of reg is filed: Tropical Hut EEs Union-CGW vs Tropical
Voluntary; prejudicial to registration of Hut Food Market et al
applicant union
(GR L-43495-99, Jan 20, 1990)
After: Involuntary; won’t affect the
registration application
Ruling: There is nothing in the federation or
int he local that forbids disaffiliation.
Collective Bargaining Unit
When to Disaffiliate:
Bargaining Unit- a group of EEs sharing • A Labor Union may disaffiliate from the
mutual interest within a given ER unit, mother union to form a local/indipendent
comprised of all or less than all of the entire union only during the 60 day freedom
body of EEs in the ER unit; any specific period preceding the expiration of the CBA

occupational/geographical grouping within

such ER uni
How to Disaffilaite:
• Must be a Majority decision through secret
• Always a group of EEs
balloting

• Supervisors and Rank and File; But not on

the same unit
Effect of Disaffiliation:
• To Bargain with ER, only one union can rep • If Minority members break away the at the
the whole CBU
wrong time; expulsion from the union
• CBU> BU
because of security classes; may be
removed from Employment

Principal-Agent Relationship • The obligation to pay union dues is

• Local/Chapter (Principal) to Labor coterminous with affiliation or membership

Federation/National Union (Agent)

• CBA continues to bind members of the
new or disaffiliated and independent union
Disaffiliation up to its expiration date

• To disaffiliate is a right, but to observe the

terms of affiliation is an obligation
Substitutionary Doctrine- EEs cannot
(p 204, Azucena) revoke the validly executed CBA just be
chaining their bargaining agent.

Liberty Cotton Mills Workers Union vs

Liberty Cotton Mills Employer Not a Party
(GR L-33987, Sept 4, 1975) • Affiliation/Disaffiliation is an intra-union
dispute; not resolved by the ER

Facts: 32/36 union members disaffiliated

Revocation of Charter
from CBU(PAFLU). PAFLU requested the
company to terminate the EEs as • Federation/National Union may revoke
charter issued to a local/chapter by:

disaffiliation is contrary to security clause;

and also expulsion from membership.
• Verified notice of revocation

• Copy furnished the Bureau

• On the ground of disloyalty/or specified

Ruling: Resolution is based on the contract in CBL

between local union and PAFLU. PAFLU

acted in behalf of the affiliate and local union
Merger/Absorption- Process where an LO
remained the basic unit of the association. It
absorbs another, resulting int he cessation of
is free to secure common interest of its
the absorbed LO’s existence

members including the freedom to

Labor Reviewer BUKSU LAW Wu

Consolidation/Amalgamation- creation or Article 246 Effect of Petition for
formation of a new union arising from the Cancellation of Registration
unification of 2 or more unions

• A Petition shall not suspend the

Why Merge? proceedings on CE nor shall it prevent the
• A small union merges with larger union in filing of a PCE

order to gain access to greater resources

and expertise
Article 247 Grounds for Cancellation of
• to eliminate inter organizational conflicts
Union Registration
• to maintain job security and institutional
survival
1. Misrepresentation, False statement or
Fraud of CBL

Notice of Merger/Consolidation of LO; 2. Misrepresentation, False statement or

Where to File: Fraud of Election of Officers

• Filed and record by the Regional office that 3. Voluntary Dissolution by the members

issued certificate of registration/certificate

of creation
Violation of members’ rights
• Notice of merger/consolidation by • Ground for cancellation of union
federations/national unions shall be filed registration under Article 250; not in 247

with and record by the Bureau

Who Files for Petition:

Change of Name
• Any party-in-interest may commence a
• Filed with the Bureau or the Regional petition for cancellation of a union’s
Office
registration

• Rights and Obligations of LO under old • Employer is a party in interest

name shall continue under its new name

• Progressive Development Corp vs

Secretary of Labor
Article 245 Cancellation of Registration
• Toyota Motor Phil Corp vs Toyota Motor
Cancellation does not make the LO cease to Phil Labor Union
exist or become an unlawful organization, its
juridical personality as wella s its statutory Article 248 Voluntary Cancellation of
rights and privileges is suspended; It cannot Registration
demand recognition by or bargaining with
the ER, cannot file a PC, and cannot strike
• LLO; 2/3 its general membership votes

• Application to cancel registration is

Grounds: (MeMeTA) submitted

• Members desire through secret balloting

Article 249 Equity of the Incumbent

• Balloting during the Meeting for its
purpose to decide to dissolve the union or
not
• Existing feds/unions shall continue to
exists regardless of the nature of the
• Dissolution should be Two-Thirds 2/3 of
general membership, not just quoroum
industry and the location o the affiliates.

• Members Resolution should be followed by

an Application for cancellation and Chapter II
submitted by the union’s governing board, Rights and Conditions of Membership
which application must be attested to by
the president
Article 250 Rights and Conditions of
Membership in an LO
Invalid Grounds A. No arbitrary or excessive fees

• Illegal Strike
B. Members entitled to full and detailed
• Nonrenewal of registration/Permit
reports

Labor Reviewer BUKSU LAW Wu

C. Members directly elect officers; intervals 2. Deliberative and Decision-Making
of 5 years; funds will be entrusted within Right
30 calendar days after election
3. Rights over Money Matters
D. Members shall determine question of 4. Right to Information
major policy through secret balloting

E. No admission of members belonging to

subversive orgs
Due Process in Impeachment of Officers
F. No admission of members convicted of a A. Initiated by petitioner signed by at least
Crime
30% of all bona fide members and
G. No collection of fees, dues, contribution addressed to the Chairman of the Board

by officers, agent/member
B. General membership shall be convened
H. Every payment shall be evidenced by by Chairman

receipt
C. Union Officer to be impeached shall be
given ample opportunity to defend
I. Funds shall only be applied to those
himself

expressly provided in CBL

D. Majority of All members shall be required

J. Income/revenue shall be evidenced to impeach or recall union officers

showing its source/expenditure shall be

(Litton Mills EE Assoc-Kapatiran vs
evidence by receipt

Ferrer-Calleja, Nov 24, 1988)

Note: Any action re funds shall prescribe
after 3 years from the date of submission of
annal reports to DOLE/ from the date should Visitorial Power
have been submitted; Only applies to LLO • Secretary of DOLE

that submitted financial reports; Failure of LO • to inquire into the financial activities

to submit financial reports will use for

cancellation
Check-offs and Assessments
K. Officers won’t have compensation other • Method of deducting from an EE’s pay at
than the salaries and expenses due to prescribed period

their positions specified in the CBL

L. The treasurer and every officer shall Requisites to Collect Special Assessment
render to the org and members a true (WMA)
and correct account of all moneys

• Authorization by a Written resolution of

M. Books of accounts shall be open to majority of all members

inspection during office hours

• Minutes of the Meeting

N. no special assessment or extraordinary

• Individual authorization for check-off

fees may be levied unless authorized by

a written resolution

Agency Fee- equivalent to union dues of

O. No special assessments, attys fees, nego nonunion member

fees may be due to an EE wo an

individual written authorization by that EE

Chapter III
P. Lo and its officers should inform its
Rights of Legitimate Labor Organizations
members of its CBL, CBA

Article 251 Rights of LLO

• Any violation shall be a ground for
cancellation of union registration or A. To Represent members for CB

expulsion of officers from office. B. To be a certified EBR

C. To be furnished by ER Financial
• At least 30% of members may report
statements

such violation to the Bureau

D. To Own property; real or personal

E. To Sue and be sued

Rights of Union Members: (PoDeMI)

F. To Undertake all other activities to benefit
1. Political Right
members (REFOSU)

Labor Reviewer BUKSU LAW Wu

Compromise Binding Upon Members of
organization must be upheld[…] It cannot be
Union; Exception
curtailed by a CBA.”
• Complaint in ULP is binding upon minority
members; Unless not authorized by
individual mem (Golden Donuts vs NLRC) EEs of Non Profit Institution
Article 252 Reportorial Requirements • Can form; provided they have complied
with the requisites

To be submitted to the Bureau by the LLO:

• CBL
EEs of COOP
• List of officers, minutes of election
• EE-Member/Co-owner cannot bargain

• Annual financial reports

• EE-Non Member/Co-owner can bargain

• List of members once a year/ whenever

required by the Bureau
EEs of International Organization
• EEs of an organization immune from Phil
Title V jurisdiction cannot unionize

Coverage • Foreign workers are strictly prohibited from

Article 253 Coverage and EEs’ Rights to
Self Organization
• Right not exclusive to EEs (ex. movie
engaging in trade union activities; However
those with valid work permits may exercise
the right of self organization if they are
nationals of a country that grants the same
right to Filipino workers

actors)

Religious Objectors; Iglesia ni Cristo

General: Granted to All kinds of EEs of all Members
kinds of ERs
• Members of INC may form and Join Own
Union (Kapatiran sa Meat and Canning
Exception: Managerial EEs by reason of Division vs Ferrer-Calleja, June 20, 1988)
collusion with the union to the detriment of
the ER
Article 254 Right of EEs in the Public
Service
Note:
• ER can grant benefits to managerial EEs • Government EEs have right to organize
equal to or higher than those afforded to and negotiate, but not the right to strike.

union members.

Limits of Public EEs to Unionize

• Supervisors can organize but they cannot 1. Only those not fixed by law

form, join/assist a rank and file union

2. Those that require appropriation of funds

3. Those that involve the exercise of

management prerogatives (e.g.
Right to Organize cannot be bargained
appointment, promotion, etc)

Southern Phil Federation of Labor vs Allowed in Negotiation:

Calleja (GR No 80882, April 24, 1989) • Vacation and other leaves

• Work assignments of pregnant women;

Doctrine: “CBA[…]provisions cannot recreational, social, athletic, and cultural
override what is expressly provided by law activities and facilities

that only managerial EEs are ineligible to join,

assist or form any LO[…] the nature of their NOT ALLOWED TO UNIONIZE:
job does not fall under the definition of • Members of AFP, Police, Firemen, and jail
managerial in the Labor Code, they are Guards

eligible to be members of the bargaining unit

and vote in the CE. Their right to self

Labor Reviewer BUKSU LAW Wu

EO 180 • Whether such authority is not merely
• EEs have right to strike but in accordance routinely or clerical

with the law (subject o Civil Service Law • Requires the use of independent judgment

and rules and any legislation enacted by

Congress) Who are Confidential EEs?
Registration of Government Union: • Metrolab: Those who by reason of their
• Shall register with the Civil Service positions or nature of work are required to
Commission and the DOLE
assist or act in fiduciary manner to
• Application shall be filed with the BLR or managerial tees; privy to sensitive and
Regional Offices of DOLE
highly confidential records.

Public Sector Labor-Management Council Security Guards May Join Rank and File
• created by EO 180, has jurisdiction to hear or Supervisors Union
charges of ULP filed by Government EEs • Under RA 6715

against ER

Article 257 Non Abridgment of Right to

Article 255 Ineligibility of Managerial EEs Self Organization
to Join any LO; Right of Supervisory EEs
Includes Two Rights:
Article 256 Effect of Inclusion as Members 1. Right to Form, Join or Assist Labor
of EEs outside the BU Organizations

• Not a ground for cancellation; said EE shall 2. Right to Engage in lawful concerted
be removed from the list of membership of activities

union
Title VI
ULP
Three categories of EE
1. Managerial
Chapter I
2. Supervisory
Concept
3. Rank and File

Article 258 Concept of ULP and Procedure

Manager- anyone who is responsible for for Prosecution thereof
subordinates and other organizational
resources
• Self Organization is a prerequisite of
industrial democracy

Types of Managerial EEs • ULP offender- ER or an LO

• First line Managers- lowest level in an Elements

organization at which individuals are 1. EER and EE Relationship

responsible for the work of others (ex 2. Act defined in Code

foreman or production supervisor in

manufacturing plant)
Note: Prejudice to Public Interest not an
Element of ULP

• Middle Managers- more than one level in

an organization; they direct the activities of Chapter II
other managers
ULP by ERs
• Top Managers- small group of executives; Article 259 ULP of ERs
CEO/President

1. Interference

Test of Supervisory Status 2. Yellow Dog Condition

• Whether a person possesses authority to 3. Contracting Out

act int he interest of his ER

4. Company unionism

Labor Reviewer BUKSU LAW Wu

5. Discrimination for/against Union Title VII
Membership
Collective Bargaining and Administration
6. Discrimination because of Testimony
Agreement
7. Violation of Duty to Bargain

8. Paid Negotiation
Part 1 Collective Bargaining Concept and
9. Violation of CBA

Procedure
Union Security- applied to and
comprehends “closed shop,” “union shop”; if Article 261 Procedure in Collective
entered voluntarily are valid and binding
Bargaining

Kinds of Union Security Agreement CBA

• Closed Shop-only union members
• Collective bargaining or negotiations
towards collective agreement is a
• Union Shop- nonmembers

democratic framework to stabilize the

• Modified US- EEs whoa re not union relation between labor and management

members but workers hired must join

• To create a climate of sound and stable

• Exclusive Bargaining Shop- EBA for all industrial peace

EE wether union members or not

• Mutual responsibility of ER and union; legal

• Agency Shop- Free rider EEs who benefit

from union activities wo contributing 4 Processes of CBA:
financially to union support

(NermENiN)
1. Negotiation between Reps of the
Chapter III
management and the union

ULP of Labor Organization

2. Execution of a written contract
embodying the terms agreed upon

Article 260 ULP of LO

3. Negotiation of any question arising to the
interpretation/application of the contract

1. Restraint or Coercion by LO; Interference

4. Negotiation over the terms of a new
by Union is not ULP

contract/proposed modification

2. Union-Induced Discrimination; Arbitrary

use of Security Clause

Duty to Bargain- only between ER and EE

3. Refusal to Bargain
through their labor union

4. Featherbedding and Make-Work

Arrangements; EE practices which create Who represents the union?
or spread employment by unnecessarily • EBR;

maintaining or increasing the number of • Any Officer or agent

EEs/the amount of time consumed, to • May be a total stranger to the ER, may be
work on a particular job a counsel or president of a mother union

5. CBA Deal with Employer

• Only requirement is that he is duly
authorized to negotiate by the EEs through
the union

Jurisdictional Preconditions of CBA

Mechanics of CB is set in motion when these
preconditions are met:

• Possession of the Status of majority

representation of the EEs

• Proof of Majority representation

• Demand to Bargain

Labor Reviewer BUKSU LAW Wu

Note: An ER’s duty to recognize and bargain Failure/Refusal to Meet and Convene
collectively with a union doesn’t arise until • Unresolved Petition for union Cancellation

the union requests the ER to bargain.

• Refusal to Bargain with an Unregistered
Chapter; not a ULP

When Bargaining should begin? • Selling the Company; if ER directly

• After preconditions are met, CB to begin discharged his EEs to forestall a demand
12 months following the determination and for CB

certification of the EBR known as;

• Successor ER; acquires bargaining
• Certification year
When Should Bargaining End?
• The law dictates no deadline
Substantial and material alteration-new ER
Article 262 Duty to Bargain Collectively in
the Absence of CBA
obligations of his predecessor if there is a
continuity in the business operation;
TOTALITY OF CIRCUMSTANCES:
need not bargain with the incumbent union
• Conversion to Independent Franchise or
Operation; not a mandatory subject of
bargaining

• In the absence of an agreement, it shall be • Economic Exigencies does not Justify

the duty of the ER and the representatives refusal to bargain; NLRB has held than an
of EEs to bargain collectively
ER is guilt yof a refusal to bargain

Article 263 Meaning of Duty to Bargain Acts not deemed a Refusal o Bargain
Collectively • Company is Operating at a Loss

• Refusal to bargain over Demands for

• The performance of a mutual obligation to commission of ULP

meet and convene promptly and • Refusal to bargain during Period of Illegal
expeditiously in good faith for the purpose strike

of negotiating an agreement with respect

to wages, hours of work and all other T and
Non reply to Proposal; Kiok Loy
C.

Kiok Loy vs NLRC

Article 264 Duty to Bargain Collectively (Jan 22 1986)
when There Exists a CBA
Facts: The union furnished CBA copies to
Kiok Loy but latter did not reply. Union filed
• Existing CBA; Neither party shall terminate
nor modify such agreement during its for notice of strike and NLRC ordered the
lifetime
CBA proposed be considered adopted.
Company filed a petition to SC to annul the
• However either party can serve a written
notice to terminate; at least 60 days prior decision of the NLRC

to its expiration date

Ruling: Jurisdictional Preconditions were

Duty to Bargain: met: 1 possession of majority representation
2 proof of majority representation 3 demand
1. No existing CBA (Art 262)

to bargain…NLRC is authorized to determine

2. When CBA exists (Art 264)
the reasonableness of the terms and
conditions of employment in any CBA.

Four forms of ULP in Bargaining

(FEBibG)
1. Failure/Refusal to Meet and Convene
Evading Mandatory Subjects
2. Evading the Mandatory Subjects of • Wages, Hours, and other Terms and
Bargaining
Conditions of Employment

3. Bad Faith in Bargaining

• Sample Mandatory/Statutory subjects:

4. Gross Violations of CBA

• Wages nd other types of compensation

Labor Reviewer BUKSU LAW Wu

 • Working Hours and working days, • Ratification not needed; When CBA is an
including work shifts
Arbitral Award

• Vacations and holidays

• Ratified but unsigned-still effective

• Bonuses
• Unratified but Implemented-not void

• Pensions and retirement plans

• Seniority
Execution of Contract
• Transfer
• Parties indicate the date of execution and
• Lay-offs
the effectivity date

• EE workloads
• Important thing: Ratification

• Work rules and regulations

• Rent of company houses

Registration of CBA
• Union security arrangements

• DOLE located

• Non registration of CBA doesn’t make it

Mandatory- Ok to Strike/Deadlock
invalid or unenforceable; only contract-bar
Non Mandatory-No right to S/D
rule

• Certification not needed to make it valid

Impasse- good faith bargaining on the part • Requirements:

of the parties has failed to resolve the issue • CBA,

and there are no definite plans for further • Postings,

efforts to break the deadlock

• Ratification

Bad Faith
• Determination of Good faith; A question of
Fact
Automatic Renewal of CBA
• Test: Substantial proof to show bad faith

• When- Bargaining is in progress; not New Pacific Timber and Supply Company
finished
vs NLRC
• Unwarranted delay in the negotiations may (March 17, 2000)
be evidence of bad faith on the part of the
Er
Doctrine: Existing CBA in its entirety
• Surface Bargaining- sophisticated continues to have legal effect. It is the duty o
pretense in the form of apparent both parties to the CBA to keep the status
bargaining, doesn’t satisfy the statutory quo, and to continue in full force and effect
duty to bargain.
the terms and conditions of the existing
• Blue-sky Bargaining- making agreement during the 60 days period and/or
exaggerated or unreasonable proposals
until a new agreement is reached by the
• Inflexible Demands; Strike Amid parties.
Negotiation

• Boulwarism; Take it or Leave it Bargaining

Article 265 Terms of Collective Bargaining

• Proposal to Modify to the Expiring CBA;
not Bad faith
Agreement
• CBA- 5 years term

Gross Violation of the Contract • Renegotiation- not later than 3 years after
• When contract is in place, Implementation execution

should follow.

1. Effectivity Date

Ratification by the CBU; Mandatory 2. Duration or Life span of CBA

Requirements
• Approved by the majority of all the workers Extension of Effectivity of CBA; When
in the bargaining unit
Valid
• 5Days, two postings
• Valid exercise of contract

Labor Reviewer BUKSU LAW Wu

• Principle of inviolability of contracts
guaranteed by the Constitution, the Test of BU’s acceptability:
contract must be upheld.
• Whether it will best assure to all EEs the
exercise of their CB rights

Article 266 Injunction Prohibited

Confidential EEs- can’t unionize

Why? Temp/Part time EEs- Regular Part time;

• To promote and emphasize the primacy of included

free collective bargaining and negotiations, Seasonal EEs-Full time; includible, Part
including voluntary arbitration, mediation time; not included

and coniliation, as modes of settling labor

or industrial disputes.
Globe Doctrine- Desires of EEs is not
controlling, but is a factor in reaching a
General: No
decision in the bargaining.

Exception: When issued not against the

strike or picketing itself but against acts of Article 268 Representation Issue in
violence and intimidation committed against Organized Establishments
officials the ERs and nonstriking EEs

Article 269 Petitions in Unorganized

Issuance by Regular Court Establishments
General: No

Exception: To protect interest of neutral EEs

• Article 268 and 269 are amended by RA
TitleVII
Collective Bargaining and Administration
of Agreement
9481 Sec 10 and Sec 11, respectively.
Article 270 When an ER May File a Petition
• ER may petition the Bureau for an election

• If no existing CBA, the Bureau after hearing

Part 2 EE Participation and shall order a certification election

Representation • All certification cases shall be decided

within 20 working days

Article 267 EBR and Workers’

Participation in Policy and Decision Article 271 ER as Bystander
making
• PCE is filed by ER or LLO

• LO designated or selected by the majority • ER shall not be considered a party to

of EEs shall be the EBR
oppose a PCE

• However, individual EE/group shall have • ER participation limited only:

the right at any time to present grievances • notified or informed of petitions

to their ER through;
• submitting the list of EEs during the pre
• LMC- Labor management council
election conference

• Only Participation in grievance

procedures, voluntary modes of settling Article 272 Appeal from Certification
disputes, and collective bargaining; NOT Election Orders
FORMULATION OF CORPORATE • Any party may appeal the order/results of
the election

PROGRAMS OR POLICIES
• Such appeal shall be decided within 15
calendar days

Three Devices of CBU

1. Airing of Grievance
Organized Establishment- an enterprise
2. Participation in Policy and decision where there exists a recognized or certified
making by EEs whether unionized or not
SEBA

3. Collective Bargaining with ER

Labor Reviewer BUKSU LAW Wu

Three methods to determine BU: Title VII-A
1. SEBA Certification- DOLE RD to Grievance Machinery and Voluntary
recognize and certify the union as the Arbitration
SEBA

Article 273 Grievance Machinery and

2. Certification election with/wo run-off- Voluntary Arbitration
process in determining through secret
ballot the Sole and exclusive rep of the • Collective Bargaining- Not an end in itself
EE in the BU

• CBA-Law between parties

Certification Election vs Union Election

• UE; held under CBL; right to vote enjoyed
only by union members; object is to elect Is fetus a dependent?
officers of the union
• CE; ordered and supervised by DOLE; Continental Steel Manufacturing Corp vs
determined through secret balloting; w/n Hon Accredited VA Montańo (Oct 13 2009)
majority of the EEs to be represented by
the labor union Doctrine: Yes, unborn child is a dependent
• Who files? Registered union or ER
because a “dependent” is “one who relies on
• When? No CBA; file petition anytime another for support.” Hence, the EE is
except within 12 months of previous entitled to the leave with pay and the
election. With CBA; only within last 60 days insurance benefit under the CBA because of
of fifth year; FREEDOM PERIOD
death of a legitimate dependent child.”
• Where? Regional Office

8 Grounds to deny PCE

Zipper Clause- A device to forestall
• Non Appearance
negotiation proposals after the CBA has
• Illegitimacy-Unregisterd Union been signed

• Ilelgitimacy-No Charter

• Absence of ER-EE relationship Wiley Doctrine- duty to arbitrate arising

• Election Bar-12 Month bar from a CBA survives the employer’s ceasing
• Election Bar- Negotiation or Deadlock to do business as a separate entity after its
• Election Bar-Existing CBA merger with a substantially large corporation.

• Election Bar-Lack of Support

Substitutionary Doctrine- CBA is binding

3. Consent Election- its purpose is to find on the parties. EEs cannot revoke the validly
out which union should serve as the executed CBA by changing their EBR

bargaining agent

Grievances- Any question by either eR or

Consent Election vs Certification Election the union regarding the interpretation or
• Consent Election; voluntarily agreed upon application o fate CBA or company
by the parties with or without the personnel policies/any claim by either party
intervention of the Department
that the other party is violating any provision
• Certification Election; ordered by the of the CBA or company personnel policies.

Department

Voluntary Arbitration- When grievance is

Note: Retired members can still claim unresolved, either party may submit issue to
benefits under CBA
VA

• A contractual proceeding

• Referral to an impartial third person for a

final and binding resolution

Labor Reviewer BUKSU LAW Wu

Compulsory Arbitration- process of prequisite for writ of ceriorari. Certiorari
settlement of labor disputes by a inherently requires having filed an MR

government agency

• government agent has the power to Appeal from VA to CA

investigate and make an award binding • Petition for Review under Rule 43 of 1997

upon the parties

• Period of appeal is 10 days, not 15

• parties are compelled by the government

to forego their right to strike
Article 277 Cost of Voluntary Arbitration
• compelled to accept the resolution despite and Voluntary Arbitrator’s Fee
through arbitration by a third party

• Nature of the Case

Article 274 Jurisdiction of Voluntary • Time consumed in hearing the case

Arbitrators or Panel of Voluntary • Professional standing of VA

Arbitrators • Capacity to pay of the parties

• Fees provided for in the Revised Rules of

Article 275 Jurisdiction Over Other Labor Court

Disputes
Title VIII
Jurisdiction of LA and VA Strikes and Lockouts and Foreign
• Money claims in one form or another
Involvement in Trade Union Activities
• LA have Orig and Exlusive jurisdiction on
ULP and deadlocks
Chapter 1
• VA has jurisdiction over termination cases
Strikes and Lockouts
Part 1 Regulations and Limits of Strike
How to Initiate a Voluntary Arbitration? and Lock out
1. Submission

2. Demand or notice invoking the collective Article 278 Strikes, Picketing and
agreement arbitration clause
Lockouts

Article 276 Procedures Article 279 Prohibited Activities

• VA or panel of VA- shall have the power to Constitution and Labor Code- guarantees
hold hearings, receive evidences and take the right of EEs in engaging if concerted
whatever acorn is necessary to resolve thd activities to attain their legitimate objectives

issue/issues

• Award/Decision shall be final and Nature of Strike- cessation of work by EEs

executory after 10 calendar days
in an effort to get more favorable terms for
themselves

VA Award Final; Exception Grounds for Strikes/Lockout:

1. Collective Bargaining Deadlock

Continental marble Corp et al vs NLRC 2. ULP act of the ER

(May 9, 1988)
• The VA award may be modified and set Characteristics:
aside only upon the grounds on which • ER-EE relationship of strikers

decision o fate NLRC itself may be • Existence of dispute

modified or set aside by the SC

• although work ceases, employment
relation continues

Motion for Reconsideration- Awards shall • work stoppage, stoppage is temporary

not be subject of MR. However, MR is a • work stoppage done in a concerted action

• striking group is an LLO

Labor Reviewer BUKSU LAW Wu

Six Factors affecting Legality of Strike: Chapter I
• Statutory Prohibition
Part 2 Picketing and other concerted
• Procedural requirements
Actions
• Economic and ULP

• Lawful Means and Methods

Picketing- union who pace back and forth
• Injunction
before the place of business of an ER;
• Agreement of the Parties
almost always accompanies a strike; not
every concerted action is a strike

Conversion Doctrine- A strike my start as

economic and progresses to become a ULP, Picketers- May or may not be EEs of the
or vice versa
offending ER

Good faith Strike- induced honest belief Obstruction to the use of property
that management had committed ULP; how • usage of free passage

Prima Facie
• accompanied by intimidation, threats,
violence, and intimidation

Procedural Requirements do not apply in Picketing of Neutral Parties or “Innocent

Good Faith Strike By Standers

National Federation of Labor et al vs Phil Assoc of Free Unions vs Cloribel

NLRC
(Dec 15, 1997)
Doctrine: “Even if the union acted in good
faith in the belief that the company was
committing an unfair labor practice, if no
notice of strike and a strike vote were
conducted, the said strike is illegal.”
(March 28, 1969)
Doctrine: “A Picketing labor union has no
right to prevent EEs of another company
from getting in and out of its rented
premises, otherwise it will be held liable for
damages for its act against innocent
bystanders.”

National Interest Cases Picketing at Home

• Automatic Injunction and Return to Work • Not allowed

order
• doesn’t come within the ordinary meaning
of such terms as business, trade, or
National Interest Industries industry
(HEWAS)
• Hospital sector
EEs Demonstration to Protest Police
• Electric Power
Abuses
• Water Supply
Phil Blooming Mills EEs Org vs Phil
• Air Traffic
Blooming Mills
• Such other industries as may be (1973)
recommended by the NTIPC
Doctrine: “Demonstration held by petitioners
before Malacanang was against alleged
abuses of som Pasic policement, not against
NOTE: No-Strike Clause Disregarded by ER. Said demonstration was purely and
members; Union may become liable

completely an exercise of their freedom of

expression, in general, and of their right of
Article 280 Improved Offer Balloting
assembly and of a petition for redress of
• Device to end the work stoppage

Labor Reviewer BUKSU LAW Wu

grievances, before the appropriate agency, Suspension instead of Dismissal
the Chief executive.” • Penalty imposable on erring strikers does
not always have to be dismissal

Rallies as Illegal Strike

Toyota Motor Phil OCrp Workers Assoc vs
NLRC
(Oct 19, 2007)
Doctrine: “In Phil Blooming, there was no
on going labor dispute[…] In the present
case, there was an on going labor dispute”
Boycott- an attempt, by arousing a fear of
loss, to coerce others, against their will;
In PAL vs Brillantes and PALEA
Doctrine: “[…] The court invokes its judicial
prerogative to resolve disputes in a way to
render to each interested party themes
judicious solution and in the ultimate scheme
a resolution of a dispute tending to preserve
the greater order of society.”

Lawful Boycott- Free from violence or Who Declares Loss of Employment

malevolence

Status?
Overtime Boycott
Gold City vs NLRC (1995)
• Overtime Boycott and work slowdown may
amount to illegal strike

Doctrine: “the law grants the ER the option

Slowdown of declaring a union officer who participated
• EEs without seeking complete stoppage of in an illegal strikes as having lost his
work, retard production and distribution in employment”
an effort to compel compliance by the ER

Chapter I
Strikes and Lockouts Consequence of Good faith Strike:

Part 3 Consequences of Concerted Ferrer vs CIR (1966)

Actions
Doctrine: “[…]both parties had performed
Strikers’ Retention of Employment acts which understandably induced each
• Strikers remain as EEs while they are on other to believe that the other was guilty of
strike
such practices (ULP)[…] Reinstatement of
• Employment is merely suspended
strikers must be without backpay”
• No work-No Pay

Illegal Strike: Dismissable? Legal Strike Requirements:

• Union Officers: Yes
1. Notice to strike

• Union members: No
2. Strike Vote

3. Submission of the SV to DOLE at least 7

Illegal Act on Legal and Illegal Strike: days prior to strike

Dismissable?
• Yes to All
Forfeiture of Reinstatement
East Asiatic Co vs CIR (Aug 31, 1971)
Legal Strike: Dismissable?
• Union Officers: No

Doctrine: “ Because of the apparent lack of

• Union members: No

interest of the strikers concerned as shown

Labor Reviewer BUKSU LAW Wu

by their failure to report for work without
justifiable reason with the petitioners therein,
we are constrained to declare them to have
forfeited their right to reinstatement”
HSBC Ruling on Backwages of Strikers
Illegally dismissed
Doctrine: “denies backwashes only for the
period of the strike, unlike Abaria case"

Striker Found another Job

Cromwell Commercial (Sept 30, 1964)
Doctrine: “strikers or dismissed EEs have
found such employment is not necessarily a
bar to their reinstatement”
Damages:
Union officers may not be vicariously held
liable for illegal acts of strikers
In Pari Delicto:
• ER committed illegal lockout and EE
staged illegal strike;

Backwages in Strike • Both at fault

• The court will restore their respective

positions before ths trike

General Rule
• Dismissed strikers will be reinstated
without backwages

Economic Strike:
• Not entitled to backwages
Article 281 Requirement for Arrest and
• Principle of a Fair day’s wage accrues only Detention
for a Fair day’s labor
General: No union members/organizers may
• No commission of ULP= No Backwages
be arrested or detained for union activities
without previous consultation with the
ULP Strike: Secretary of Labor

• Legal Strike because of ULP

• Discriminatorily dismissed EEs received Exception:

backpay from the date of the act of
discrimination.
• National Security and Public Peace, or;

• In case of commission of a crime

• Cromwell Decision: Voluntary act of

protest against ULP of company and the Chapter II
stoppage of work note a direct
Assistance to Labor Organization
consequence of the companies’ ULP;
Hence NO Backwages.

(p 708, Azucena)
Article 282 Assistance by the DOLE

Exception: Article 283 Assistance by the Institute of

• Involuntary Strikers Illegally Locked out
Labor and Manpower Studies
• Voluntary Strikers who Offered to Return to
Work
Labor Education
• Advancement of industrial peace and
democracy should be matched by
Dismissed Strikers not entitled to sustained education of workers

Backwages
Chapter III
G and S Transport vs Infante (2007) Foreign Activities
Doctrine: “Illegally dismissed strikers are
entitled to reinstatement and backwashes Article 284 Prohibition Against Aliens;
except for the period they were on strike” Exceptions
General: Not Allowed

Labor Reviewer BUKSU LAW Wu

Exception: If with Work Permit and their
country grants same similar right to Filipino
workers

Article 285 Regulation of Foreign

Assistance

No foreigner may give donations, grants, or

other forms of assistance in relation to trade
union activities without permission by the
Secretary of Labor

Article 286 Applicability to Farm Tenants

and Rural Workers
• Applicable to farm tenants, rural workers,
and the like

• Secretary of grain Reform shall exercise

the powers and responsibilities vested by
this title in the Secretary of Labor

Article 287 Penalties for violation

Penalties:
• Fined 1,000 Php-10,000 Php

• Foreigners who violate shall be subject to

immediate and summary deportation

Labor Reviewer BUKSU LAW Wu