labor compilation 2

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III. Labor Organizations 32 RIZAL LABOR UNION V. RIZAL CEMENT CO. INC. (55) MANILA CORDAGE CO. V. CIR (77) F. Coverage – Worker Inclusion and Exclusion Art. 248. Unfair labor practices of employers. It shall be unlawful for an employer to commit any of the following unfair labor practice: (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; GUIJARNO V. CIR G. Implementation – Obligation and Liabilities INQUILLO V. FIRST PHILS. (09) NATIONAL UNION OF WORKERS IN HOTESLS, ETC. V. NLRC (08) OLVIDO V. CA (07) MALAYANG SAMAHAN V. M. GREENFIELD V. RAMOS (00) ALABANG COUNTRY CLUB V. NLRC (08) H. Financial Security – Agency Shop; Check-off Art. 248. Unfair labor practices of employers. It shall be unlawful for an employer to commit any of the following unfair labor practice: (e) To discriminate in regard to wages, hours of work and other terms and conditions of employment in order to encourage or discourage membership

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III. Labor Organizations 32

RIZAL LABOR UNION V. RIZAL CEMENT CO. INC. (55)

MANILA CORDAGE CO. V. CIR (77)

F. Coverage – Worker Inclusion and Exclusion

Art. 248. Unfair labor practices of employers. It shall be unlawful for an employer to commit any of the following unfair labor practice:

(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;

GUIJARNO V. CIR

G. Implementation – Obligation and Liabilities

INQUILLO V. FIRST PHILS. (09)

NATIONAL UNION OF WORKERS IN HOTESLS, ETC. V. NLRC (08)

OLVIDO V. CA (07)

MALAYANG SAMAHAN V. M. GREENFIELD V. RAMOS (00)

ALABANG COUNTRY CLUB V. NLRC (08)

H. Financial Security – Agency Shop; Check-off

 Art. 248. Unfair labor practices of employers. It shall be unlawful for an employer to commit any of the following unfair labor practice:

(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 

III. Labor Organizations 33

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;

Art. 113. Wage deduction. No  employer,   in  his  own behalf  or   in  behalf   of  any person, shall make any deduction from the wages of his employees, except:

(b) For union dues, in cases where the right of the worker or his union to check-off has  been  recognized by   the  employer  or  authorized   in  writing  by   the   individual worker concerned; and

NATIONAL BREWERY V. SAN MIGUEL BREWERY INC. (63)

DEL PILAR ACADEMT V. DEL PILAR ACADEMY EMPLOYEES UNION (08)

VII. International Activities of Unions

Chapter III – FOREIGN ACTIVITIES

Art. 269. 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. 270. 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 reporting of the amounts of the  donations  or  grants,   the   specific   recipients   thereof,   the  projects  or activities proposed to be supported, and their duration.

Art. 271. 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.

IV. Pre-Conditions to Collective Bargaining - Appropriate Bargaining Unit and Union Majority Status 34

IV. Pre-Conditions to Collective Bargaining - Appropriate

Bargaining Unit and Union Majority Status

A. Appropriate Bargaining Unit

1. Definition and Role in Law

Art. 255. 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.

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. 256. Representation issue in organized establishments. In   organized establishments,  when  a   verified  petition  questioning   the  majority   status   of   the incumbent   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   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.

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. (As amended by Section 23,  Republic  Act  No.  6715, March 21, 1989)

BELYCA CORP. V. CALLEJA (88)

2. Determination of Appropriate Bargaining Unit

a. Factors – Unit Determination

1. In General – Standard Test

UP V. FERRER – CALLEJA (92)

2. History

SAN MIGUEL CORP. V. LAGUESMA (94)

3. Geography – Location

BENGUET CONSOLIDATED INC. AND BALATOC MINING CO. V. BOBOK LUMBERJACK CORP. (58)

IV. Pre-Conditions to Collective Bargaining - Appropriate Bargaining Unit and Union Majority Status 35

5. Size – Composition

PHIL. DIAMOND HOTEL AND RESORT INC. V. MANILA DIAMOND HOTEL EMPLOYEES UNION (04)

3. Corporate Entities

STA. LUCIA, ETC. V. SEC. DOLE (09)

DIATOGON LABOR FEDERATION V. OPLE (80)

INDOPHIL TEXTILE MILLS WORKERS UNION V. CALICA (92)

PHIL. SCOUTS VETERANS SECURITY AND INVESTIGATING AGENCY V. TORRES (93)

SAN MIGUEL CORP. EMPLOYEES UNION V. CONFESOR (96)

COMPLEX ELECTRONICS V. NLRC (99)

4. Unit Severance and Globe Doctrine

Industrial/Craft Unions

KAPISANAN NG MGA MANGGAGAWA SA MANILA RAILROAD V. YARD CREW UNION RAILROAD ENGINEERING DEPT. UNION, MANILA RAILROAD CO. (60)

MECHANICAL DEPT. LABOR UNION V. CIR (68)

5. Effect of Prior Agreement

GENERAL RUBBER AND FOOTWEAR CORP. V. BLR (87)

DE LA SALLE UNIVERSITY V. DE LA SALLE UNIVERSITY EMPLOYEES ASSOCIATION (00)

Changes – Composition

SAN MIGUEL, CORP. V. SAN MIGUEL, ETC. (05)

6. Determining Agency

Art. 232. 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. (As amended by Section 15, Republic Act No. 6715, March 21, 1989)

IV. Pre-Conditions to Collective Bargaining - Appropriate Bargaining Unit and Union Majority Status 36

Agency and Finality Order

FILOIL REFINERY CORP. V. FILOIL SUPERVISORY AND CONFIDENTIAL EMPLOYEES ASSOCIATION (72)

B. Union Representation – Establishing Union Majority Status

1. Pre-Condition – ER-EE Relationship

Election – Pre-requisite

ALLIED FREE WORKERS UNION V. CIA MARITIME (67)

DUNLOP V. SECRETARY (98)

2. Methods of Establishing Majority Status

A. Purpose

PORT WORKERS UNION OF THE PHILIPPINES V. LAGUESMA (92)

REYES V. TRAJANO (92)

B. Elections – Certification Election; Consent Election; Voluntary Recognition; Run-off Election

Art. 256. Representation issue in organized establishments. In   organized establishments,  when  a   verified  petition  questioning   the  majority   status   of   the incumbent   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   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.

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. (As amended by Section 23,  Republic  Act  No.  6715, March 21, 1989)

Art. 257. 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. (As amended by Section 24, Republic Act No. 6715, March 21, 1989)

Art. 258. 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. 258-A. 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: (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."

Distinctions – Certification and Consent Elections

WARREN MANUFACTURING WORKERS UNION V. BLR (88)

IV. Pre-Conditions to Collective Bargaining - Appropriate Bargaining Unit and Union Majority Status 37

ALGIRE V. DE MESA (94)

1. No Direct Certification

COLGATE PALMOLIVE PHILS V. OPLE (88)

2. Employer Certification – Employer Voluntary Recognition

SAMAHANG MANGGAGAWA SA PREMEX V. SECRETARY OF LABOR (98)

3. Effect: One Union Only

GEORGE AND PETER LINES, INC. V. ASSOCIATED LABOR UNION (85)

4. Purpose

NATIONAL UNIO, ETC. V. SEC. DOLE (09)

Compare Policy on Certification Election, 256, 257, 258, and Voluntary Recognition – BV, Implementing Rules RI (bb), BV, IR, R R VIII; BV; IR, RVIII, Sec. 23

5. Religion/Past Non-Participation

REYES V. TRAJANO (92)

3. Certification Election – Process

A. The Union as Initiating Party

Art. 212. Definitions. (h)   "Legitimate   labor   organization"   means   any   labor organization duly registered with the Department of Labor and Employment, and includes any branch or local thereof.

Art. 242. Rights of legitimate labor organizations. A legitimate labor organization shall have the right:

(b) To be certified as the exclusive representative of all the employees in an appropriate bargaining unit for purposes of collective bargaining;

SAN MIGUEL CORP., ETC. V. SAN MIGUEL, ETC. (05)

LOPEZ SUGAR CORP. V. SEC. OF LABOR AND EMPLOYMENT (98)

IV. Pre-Conditions to Collective Bargaining - Appropriate Bargaining Unit and Union Majority Status 38

DUNLOP V. SEC. OF LABOR (98)

SAMAHANG V. DOLE (98)

1. Organized Establishment

Art. 256. Representation issue in organized establishments. In   organized establishments,  when  a   verified  petition  questioning   the  majority   status   of   the incumbent   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   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.

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. (As amended by Section 23,  Republic  Act  No.  6715, March 21, 1989)

a. Definition

CALIFORNIA MANUFACTURING CORP. V. LAGUESMA (92)

b. Freedom Period

ATLANTIC GULF AND PACIFIC CO. MANILA, INC. V. LAGUESMA (92)

c. When Applied

ASSOCIATED LABOR UNION V. CALLEJA (89)

GENERAL MILLING CORP V. CA (04)

d. Form of Petition – Signature Verification and Verification of Pleadings

NATIONAL MINES AND ALLIED WORKERS UNION V. SEC. OF LABOR (93)

TODAY’S KNITTING V. NORIEL (77)

e. Venue

CRUZ VALLE V. LAGUESMA (94)

f. Substantial Support

IV. Pre-Conditions to Collective Bargaining - Appropriate Bargaining Unit and Union Majority Status 39

1. Rationale and Computation

PHIL. ASSOC. OF FREE LABOR UNIONS V. FERRER CALLEJA (89)

ST. JAMES SCHOOL V. ST. JAMES SCHOOL (05)

2. Compliance

CALIFORNIA MANUFACTURING CORP. V. LAGUESMA (92)

3. Motion – Intervention

PORT WORKERS UNION OF THE PHILS V. FERRER CALLEJA (92)

4. Submission

ORIENTAL TIN CAN LABOR UNION V. SEC. OF LABOR (98)

PORT WORKERS UNION OF THE PHILIPPINES V. DOLE (92)

5. Effect of Withdrawal

TAGAYTAY HIGHLANDS INTERNATIONAL GOLF CLUB V. TAGAYTAY HIGHLANDS EMPLOYEES UNION (03)

6. Discretion Rule Application

AIRTIME SPECIALISTS, INC V. BLR (90)

WESTERN AGUSAN WORKERS UNION LOCAL 101 OF THE UNITED LABOR AND GENERAL WORKERS OF THE UNITED LUMBER AND GENERAL WORKERS OF THE PHILS. V. TRAJANO (91)

2. Unorganized Establishment

Art. 212. Definitions. (h)   "Legitimate   labor   organization"   means   any   labor organization duly registered with the Department of Labor and Employment, and includes any branch or local thereof.

Art. 257. 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. (As amended by Section 24, Republic Act No. 6715, March 21, 1989)

Art. 242. Rights of legitimate labor organizations. A legitimate labor organization shall have the right:

(b) To be certified as the exclusive representative of all the employees in an appropriate bargaining unit for purposes of collective bargaining;

a. Definition

PHIL. TELEGRAPH AND TELEPHONE CORP V. LAGUESMA (93)

IV. Pre-Conditions to Collective Bargaining - Appropriate Bargaining Unit and Union Majority Status 40

CALIFORNIA MANUFACTURING CORP V. LAGUESMA (92)

CELINE MARKETING CORP. V. LAGUESMA (92)

b. Mandatory Election

SUGBUANON RURAL BANK INC V. LAGUESMA (00)

B. The Employer as the Initiating Party

Art. 212. Definitions.

(e) "Employer"   includes   any   person   acting   in   the   interest   of   an   employer, directly or indirectly. The term shall not include any labor organization or any of its officers or agents except when acting as employer.

"ART. 258-A. 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: (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."

Role – Employer

STA. LUCIA INC V. SEC. DOLE (09)

REPUBLIC V. KAWASHIMA TEXTILE, ETC. (08)

NOTRE DAME V. LAGUESMA (04)

SMC QUARRY WORKERS UNION V. TITAN MEGABAGS INDUSTRIAL CORP. (04)

4. Nature of Proceeding

A. Nature

YOUNG MEN LABOR UNION STEVEDORES V. CIR (65)

B. Certification Election and Run-off – Process and Procedure

Art. 256. Representation issue in organized establishments. In   organized establishments,  when  a   verified  petition  questioning   the  majority   status   of   the incumbent   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   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.

IV. Pre-Conditions to Collective Bargaining - Appropriate Bargaining Unit and Union Majority Status 41

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. (As amended by Section 23,  Republic  Act  No.  6715, March 21, 1989)

Art. 257. 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. (As amended by Section 24, Republic Act No. 6715, March 21, 1989)

Art. 258. 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.

a. Effect of private agreement

ILAW AT BUKLOD NG MANGGAGAWA V. DIRECTOR (79)

PLUM FEDERATION OF INDUSTRIAL AND AGRARIAN WORKERS V. NORIEL (82)

5. Election – Mechanics of Process

RULE V Representation Cases and Internal-Union Disputes

SECTION 1. Where to file. — A petition for certification election shall be filed with the Regional Office which has jurisdiction over the principal office of the petitioner. The petition shall be in writing and under oath.

SECTION 2. Who may file. — Any legitimate labor organization or the employer, when requested to bargain collectively, may file the petition.

The petition,  when filed by a  legitimate  labor organization shall  contain,  among others:

(a) The name of petitioner and its address and affiliation, if any;

(b) Name, address and nature of the employer's business;

(c)  Description   of   the   bargaining   unit  which   shall   be   the   employer   unit   unless circumstances   otherwise   require;   and   provided   further,   that   the   appropriate bargaining   unit   of   the   rank-and-file   employees   shall   not   include   supervisory employees and/or security guards;

(d) Appropriate number of the employees in the alleged bargaining unit;

(e) Names and addresses of other legitimate labor organizations in the bargaining unit;

(f)   In   an   organized   establishment,   the   signatures   of   at   least   twenty-five   (25%) percent of all employees in the appropriate bargaining unit; and

(g) Other relevant facts.

When the petition is filed by an employer, it shall contain, among others:

(a) The name, address and general nature of the employer's business;

(b) Names and addresses of the legitimate labor organizations involved;

(c) Approximate number of the employees in the appropriate bargaining unit;

(d)  Description   of   the   bargaining   unit  which   shall   be   the   employer   unit   unless circumstances   otherwise   required;   and   provided   further,   that   the   appropriate bargaining   unit   of   the   rank-and-file   employees   shall   not   include   supervisory employees and/or security guards;

(e) Other relevant facts.

SECTION 3. When to file. — In the absence of a collective bargaining agreement duly registered in accordance with Article 231 of the Code, a petition for certification election may be filed at any time. However, no certification election may be held within one year from the date of  issuance of  a final  certification election result. Neither  may  a   representation  question  be   entertained   if,   before   the  filing  of   a petition for certification election, 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.

IV. Pre-Conditions to Collective Bargaining - Appropriate Bargaining Unit and Union Majority Status 42

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.

SECTION 4. Effects of early agreements.  —  The   representation   case   shall   not, however,  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.

SECTION 5. Where to file motion for intervention. — The motion for intervention in certification election proceedings shall be filed before the Med-Arbiter assigned to the case. The mere filing of said motion, however, will not suspend the holding of the certification election without an order issued by the Med-Arbiter.

SECTION 6. Procedure. — Upon receipt of a petition, the Regional Director shall assign the  case to  a  Med-Arbiter   for  appropriate  action.  The Med-Arbiter,  upon receipt   of   the   assigned   petition,   shall   have   twenty   (20)   working   days   from submission of the case for resolution within which to dismiss or grant the petition.

In   a   petition   filed   by   a   legitimate   organization   involving   an   unorganized establishment,   the   Med-Arbiter   shall   immediately   order   the   conduct   of   a certification election.

In a petition involving an organized establishment or enterprise where the majority status of the incumbent collective bargaining union is questioned through a verified petition by a legitimate labor organization, the Med-Arbiter shall immediately order the certification election by secret ballot if the petition is filed during the last sixty (60)  days  of   the   collective  bargaining  agreement  and   supported  by   the  written consent of at least twenty-five percent (25%) of all the employees in the bargaining unit.   Any   petition   filed   before   or   after   the   sixty-day   freedom   period   shall   be dismissed  outright.  The   twenty-five  percent   (25%)   requirement   shall  be   satisfied upon the filing of the petition, otherwise the petition shall be dismissed.

The sixty-day freedom period based on the original collective bargaining agreement shall  not  be affected by  any amendment,  extension or   renewal  of   the collective bargaining agreement for purposes of certification election.

The decision calling for the conduct of an election shall contain the following:

(a) Names of the contending unions;

(b) Name of the employer;

(c) Description of the bargaining unit, and

(d) List of eligible voters which shall be based on the payroll three (3) months prior to the filing of the petition for certification election.

The certification election shall be held within twenty (20) calendar days from receipt of the order by the parties.

SECTION 7. Appeal. — Any aggrieved  party  may  appeal   the  order  of   the  Med-Arbiter   to   the   Secretary  on   the  ground   that   the   rules  and   regulations  or  parts thereof established by the Secretary for the conduct of election have been violated.

The appeal shall specifically state the grounds relied upon by the appellant with the supporting memorandum.

SECTION 8. Where to file appeal. — The appeal, which shall be under oath and copy furnished   the   appellee,   shall   be   filed   in   the   Regional   Office   where   the   case originated.

SECTION 9. Period of Appeal. — The appeal shall be filed within ten (10) calendar days from receipt of the order by the appellant. Any opposition thereto may be filed within ten (10) calendar days from receipt of the appeal. The Regional Director shall within five (5) calendar days forward the entire records of the case to the Office of the Secretary.

SECTION 10. Decision of the Secretary final and unappealable. — The Secretary shall have fifteen (15) calendar days within which to decide the appeal from receipt of the records of the case. The filing of the appeal from the decision of the Med-Arbiter stays the holding of any certification election. The decision of the secretary shall be final and unappealable.

SECTION 11. Execution pending appeal. — The execution of the order of the Med-Arbiter shall be stayed pending appeal.

RULE IX Registration of Collective Bargaining Agreements

SECTION 1. Registration of collective bargaining agreement. — The parties to a collective   bargaining  agreement   shall   submit   to   the  Bureau  or   the   appropriate Regional Office five (5) duly signed up copies thereof within thirty (30) calendar days from execution.  Such copies  of   the  agreement   shall  be  accompanied  by  verified proof of its posting in two conspicuous places in the workplace and of ratification by the majority of all the workers in the bargaining unit.

IV. Pre-Conditions to Collective Bargaining - Appropriate Bargaining Unit and Union Majority Status 43

Five   (5)   copies  of   the   collective  bargaining  agreement  executed  pursuant   to  an award by the appropriate government authority or by a voluntary arbitrator shall likewise be submitted by the parties to the Bureau or Regional Office accompanied by verified proof of its posting in two conspicuous places in the workplace.

Such proof shall consist of copies of the following documents certified under oath by the union secretary and attested to by the union president:

(a) Statement that the collective bargaining agreement was posted in at least two conspicuous places in the establishment at least five (5) days before its ratification, and

(b) Statement that the collective bargaining agreement was ratified by the majority of the employees in the bargaining unit.

The posting required in the preceding paragraph shall be the responsibility of the parties.

The Bureau or   the Regional  Office shall  assess   the employer   for  every  collective bargaining agreement a registration fee of one thousand (P1,000.00) pesos.

The Regional Office shall transmit two (2) copies of the agreement to the Bureau and one (1) to the Board within five (5) calendar days from its registration. Where the agreement is registered with the Bureau, one (1) copy shall be sent to the Board and two (2) copies to the Regional Office where the company has its principal office.

The Bureau or the Regional Office shall issue a certificate of registration within five (5) calendar days from receipt of the agreement.

SECTION 2. Terms of collective bargaining agreement. — The representation status of the collective bargaining agent shall be for a period of five (5) years. The parties are encouraged to conclude a collective bargaining agreement with a term of not more than five (5) years; Provided, that the parties shall renegotiate all provisions other than the representation issue not later than the third year; Provided further, that   the  collective  bargaining  agreement  or  other  provisions  of   such  agreement entered into within six (6) months from the date of expiry of the term of such other provisions as fixed in the 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  date  of   effectivity   thereof.   In   case  of  a deadlock in the renegotiation, of the collective bargaining agreement, the parties may   exercise   their   rights   under   this   Code.   In   case   of   such   a   renegotiation,   all requirements for registration shall be complied with, except for the payment of the registration fee.

The term of all contracts entered into before the effectivity of Republic Act No. 6715, shall be respected. Thereafter, any new collective bargaining agreement that shall be  entered   into   in   the  same establishment  shall   conform with   the  provisions  of Republic Act No. 6715.

RULE X Labor Education and Research

SECTION 1. Enlightenment of unionists as a duty. —  It shall be the duty of every legitimate   labor   organization   to   enlighten   its   members   on   their   rights   and obligations as unionists and as employees.

SECTION 2. Special fund for labor education and research. — Every legitimate labor organization   shall,   for   the   above   purpose,   maintain   a   special   fund   for   labor education   and   research.   Existing   strike   funds   may   be   transformed   into   labor education and research funds, in whole or in part. The union may also periodically assess and collect a reasonable amount from its members for such fund.

SECTION 3. Mandatory seminars. — It shall be mandatory for every legitimate labor organization   to   conduct   seminars   and   similar   activities   on   existing   labor   laws, collective agreements, company rules and regulations, and other relevant matters. The union seminars  and similar  activities  may be conducted  independently  or   in cooperation  with   the   Department   of   Labor   and   Employment,   the   Asian   Labor Education Center, the Institute of Labor and Manpower Studies, and other labor-education groups.

SECTION 4. Official receipts. — All collections and expenditures of funds for labor research and education shall be duly covered by official receipts subject to account examination by the Secretary of Labor and Employment or his representative.

SECTION 5. Grounds for impeachment or expulsion. — Failure to provide adequate labor education and research services to members of a labor organization shall be a ground   for   the   impeachment   or   expulsion   of   the   officer   or   officers   responsible therefor in accordance with the provisions of the constitution and by-laws of the labor organization concerned. Misuse or illegal disbursement of the labor education and research fund shall be a ground for impeachment or expulsion from the union and punishable under the relevant provisions of the constitution and by-laws of the union and other applicable laws.

IV. Pre-Conditions to Collective Bargaining - Appropriate Bargaining Unit and Union Majority Status 44

A. Posting Notice

B. Waiver

JIESCOR INDEPENDENT UNION V. TORRES (93)

C. Voting list and Voters

Voting List

NATIONAL UNION, ETC V. SEC. DOLE (09)

ACOJE WORKERS UNION V. NATIONAL MINES AND ALLIED WORKERS UNION (63)

NOTRE DAME V. LAGUESMA (04)

ST. JAMES SCHOOL V. SAMAHANG _ (05)

D. Voters All Employees

Art. 212. Definitions.

(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.

Art. 256. Representation issue in organized establishments. In   organized establishments,  when  a   verified  petition  questioning   the  majority   status   of   the incumbent   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   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.

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. (As amended by Section 23,  Republic  Act  No.  6715, March 21, 1989)

NATIONAL UNION, ETC V. SEC. DOLE (09)

YOKOHAMA TIRE PHILS. V. INC. YOKOHAMA EMPLOYEES UNION (07)

AIRTIME SPECIALISTS INC V. DIRECTOR BLR (89)

IV. Pre-Conditions to Collective Bargaining - Appropriate Bargaining Unit and Union Majority Status 45

BARRERA V. CIR (81)

CONFEDERATION OF CI TIZENS LABOR UNIONS V. NORIEL (80)

EASTLAND MANUFACTURING CO. INC V. NORIEL (82)

R. TRANSPORT CORP. V. LAGUESMA (93)

E. Effect of non-participation in Previous Election

REYES V. TRAJANO (92)

Voting Day

ASIAN DESIGN AND MANUFACTURING CORP V. CALLEJA (89)

F. Validity

NATIONAL UNION, ETC. V. SEC. DOLE (09)

SAMAHAN NG MANGGAGAWA SA PACIFIC PLASTIC V. LAGUESMA (97)

G. Protest

Period

TIMBUNGCO V. CASTRO (90)

DHL PHILIPPINES CORP. UNITED RANK AND FILE ASSOCIATION – FEDERATION OF FREE WORKERS V. BUKLOD NG MANGGAGAWA NG DHL PHILS. CORP. (04)

H. Appeal

Art. 259. 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. (As amended by Section 25, Republic Act No. 6715, March 21, 1989)

PHIL. FRUITS AND VEGETABLE INDUSTRIES V. TORRES (92)

SAMAHAN NG MANGGAGAWA SA FILSYSTEMS, INC. V. SEC. OF LABOR (98)

IV. Pre-Conditions to Collective Bargaining - Appropriate Bargaining Unit and Union Majority Status 46

NOTRE DAME MEGABAGS INDUSTRIAL CORP. V. LAGUESMA (04)

SMC QUARRY WORKERS UNION V. TITAL MEGABAGS INDUSTRIAL CORP. (04)

I. Annulment

1.Allegations/Grounds

UNITED EMPLOYEES UNION OF GELMART INDUSTRIES V. NORIEL (75)

NATIONAL FEDERATION OF LABOR V. SEC. DOLE (98)

DHL PHILIPPINES CORP. UNITED RANK AND FILE ASSOCIATION – FEDERATION OF FREE WORKERS V. BUKLOD NG MANGGAGAWA NG DHL PHILS. CORP. (04)

2. Irregularities

CONFEDERATION OF CITIZENS LABOR UNION V. NORIEL (82)

TIMBUNGCO V. CASTRO (90)

6. Certification of Designated Majority Union

Art. 255. 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.

Any provision of law to the contrary notwithstanding, workers shall have the right, B. 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. 256. Representation issue in organized establishments. In   organized establishments,  when  a   verified  petition  questioning   the  majority   status   of   the incumbent   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   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.

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. (As amended by Section 23,  Republic  Act  No.  6715, March 21, 1989)

Art. 212. Definitions.

IV. Pre-Conditions to Collective Bargaining - Appropriate Bargaining Unit and Union Majority Status 47

(j)  "Bargaining representative" means a legitimate labor organization whether or not employed by the employer.

A. Majority Union

NATIONAL UNION, ETC. V. DOLE (09)

PHIL. DIAMOND HOTEL AND RESORT INC. V. MANILA DIAMOND HOTEL EMPLOYEES UNION (04)

MARICALUM MINING V. BRION (06)

TRADE UNIONS OF THE PHIL. V. LAGUESMA (94)

B. Run-off Election

NATIONAL UNION, ETC. V. DOLE (09)

C. Effect of Certification

NATIONAL V. SAN MIGUEL (02)

7. Bars to Certification Election

A. One Year Bar Rule

Period Covered

R. TRANSPORT CORP. V. LAGUESMA (93)

KAISAHAN NG MANGGAGAWANG PILIPINO V. TRAJANO (91)

B. Deadlock Bar Rule

1. Requirements

NATIONAL CONGRESS OF UNIONS IN THE SUGAR INDUSTRY V. TRAJANO (92)

2. No Deadlock

DIVINE WORD UNIVERSITY OF TACLOBAN V. SEC. OF LABOR AND EMPLOYMENT (92)

C. Contract Bar Rule

Art. 232. 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. (As amended by Section 15, Republic Act No. 6715, March 21, 1989)

1. History

GENERAL MARITIME STEVEDORES OF THE PHIL. V. SOUTH SEA SHIPPING LINES (64)

IV. Pre-Conditions to Collective Bargaining - Appropriate Bargaining Unit and Union Majority Status 48

CONFEDERATION OF CITIZENS LABOR UNION V. NLRC (74), FERNANDO, J. CONCURRING OPINION 476-420

2. Rule Statement

COLLEGIO DE SAN JUAN DE LETRAN V. ASSOCIATION OF EMPLOYEES AND FACULTY OF LETRAN (00)

SAMAHAN NG MANGGAGAWA SA PREMEX V. SEC. OF LABOR (98)

BARBIZON PHILS. NAGKAKAISANG SUPERVISOR (96)

3. Incomplete Contract

BUKLOD NG SAULOGTRANSIT V. CASALLA (56)

4. Premature Contract

SAMAHAN NG MANGGAGAWA SA PACIFIC PLASTIC V. LAGUESMA (97)

CITIZENS LABOR ORGANIZATION V. CIR (66)

5. Exception

PORT WORKERS UNION V. USEC. OF LABOR (92)

6. Not Registered CBA

TRADE UNIONS OF THE PHILS. V. LAGUESMA (94)

7. Registered CBA

ASSOCIATION OF INDEPENDENT UNION V. NLRC (99)

8. Expired CBA

COLLEGIO DE SAN JUAN DE LETRAN V. ASSOCIATION OF EMPLOYEES AND FACULTY OF LETRAN (00)

D. Consent Election

IV. Pre-Conditions to Collective Bargaining - Appropriate Bargaining Unit and Union Majority Status 49

8. Suspension of Certification Election

A. Prejudicial Question Rule

Art. 248. Unfair labor practices of employers. It shall be unlawful for an employer to commit any of the following unfair labor practice:

(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;

BF GOODRICH PHILS. MARIKINA V. BF GOODRICH CONFIDENTIAL AND SALARIED EMPLOYEES UNION (73)

UNITED CMC TEXTILE WORKERS UNION V. BLR (84)

B. Party and issue

Art. 248. Unfair labor practices of employers. It shall be unlawful for an employer to commit any of the following unfair labor practice:

(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;

BARRERA V. CIR (81)

UNITED CMC TEXTILES UNION V. BLR (128 SCRA 316)

9. Effect, pending petition, cancellation of trade union registration

ASSOC. OF COURT OF APPEALS EMPLOYEES V. FERRER-CALLEJA (91)

PROGRESSIVE DEV’T CORP. V. LAGUESMA (98)

V. Collective Bargaining: Process, Procedures and Issues 50

V. Collective Bargaining:Process, Procedures and Issues

A. General Concepts

1. Policy Declaration

Art. 211. Declaration of Policy.

A. It is the policy of the State: 

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 XIII Section 3. 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-organizations,   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 on investments, and to expansion and growth.

KIOK LOY V. NLRC (86)

SCOUT ALBANO MEMORIAL COLLEGE (85 SCRA 494, 78)

2. Nature, Purpose and Rules Interpretation

SUAREZ V. NATIONAL STEEL CORP. (08)

LEPANTO CONSOLIDATED MINING CO. V. LEPANTO LOCAL STAFF UNION (08)

UNITED EMPLOYEES UNION OF GELMART INDUSTRIES, PHILS. V. NORIEL (75)

PI MANUFACTURING INC. V. PI MANUFACTURING SUPERVISORS AND FOREMAN ASSOC. (08)

ALMARIO V. PHIL. AIRLINES (07)

3. Waiver

RIVERA V. ESPIRITU (02)

V. Collective Bargaining: Process, Procedures and Issues 51

B. Bargaining Procedure

1. Private Procedure

Art. 251. 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.

2. Code Procedure

Art. 250. Procedure in collective bargaining. The   following  procedures   shall   be observed 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  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)

Art. 212. Definitions.

(c) "Board" means the National Conciliation and Mediation Board established under Executive Order No. 126.

TABIQUE V. INTERNATIONAL, ETC. (09)

3. Nature of Procedure

Art. 253. 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.

TABIQUE V. INTERNATIONAL, ETC. (09)

ASSOCIATED LABOR UNIONS V. CALLEJA (89)

CALTEX V. BRILLANTES (97)

AMERICAN PRESIDENT LINES V. CLAVE (82)

NATIONAL UNION OF RESTAURANT WORKERS V. CIR (64)

V. Collective Bargaining: Process, Procedures and Issues 52

COLLEGIO DE SAN JUAN DE LATRAN V. ASSOC. OF EMPLOYEES (00)

KIOKLOY V. NLRC (88)

4. Conciliation Procedure

Art. 212. Definitions.

(b) "Board" means the National Conciliation and Mediation Board established under Executive Order No. 126.

Art. 233. 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.

NUSSAB MOTORS V. SEC. DOLE (06)

C. Duty to Bargain

Art. 250. Procedure in collective bargaining. The   following  procedures   shall   be observed 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  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)

Art. 251. 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. 252. 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 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. 253. 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.

Art. 242. Rights of legitimate labor organizations. A legitimate labor organization shall have the right:

V. Collective Bargaining: Process, Procedures and Issues 53

(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;

1. Meaning of Duty

UNIVERSITY OF SAN AGUSTIN, ETC. V. UNIVERSITY OF SAN AGUSTIN (09)

UNION OF FILIPRO EMPLOYEES, ETC. V. NESTLE PHILS., INC. (08)

KIOK LOY V. NLRC (86)

STANDARD CHARTERED BANK EMPLOYEES’ UNION V. CONFESOR

UNION OF FILIPRO, ETC. V. NESTLE PHILS. (06)

GENERAL MILLING CORP. V. CA (04)

COLLEGIO DE SAN JUAN DE LATRAN V. ASSOC. OF EMPLOYEES (00)

REPUBLIC SAVINGS BANK V. CIR (67)

2. Deadlock

SAN MIGUEL CORP. V. NLRC (99)

3. Minutes of Negotiations

SAMAHANG MANGAGAWA SA TOP FORM V. NLRC (98)

4. Suspension of Bargaining

COLLEGIO DE SAN JUAN DE LATRAN V. ASSOC. OF EMPLOYEES (00)

5. Waiver – Right

RIVERA V. ESPIRITU (02)

V. Collective Bargaining: Process, Procedures and Issues 54

D. Bargainable Issues

Art. 252. 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 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.

1. Issues

PHIL. AMERICAN MANAGEMENT CO. INC. V. PHIL. AMERICAN MANAGEMENT EMPLOYEES ASSOC. (73)

MANILA FASHIONS INC. V. NLRC (96)

REPUBLIC SAVINGS BANK V. CIR (67)

NESTLE PHILS. INC. V. NLRC (91)

SAMAHANG MANGGAGAWA SA TOP FORM MANUFACTURING UNITED WORKERS OF THE PHILIPPINES V. NLRC (98)

STANDARD CHARTERED BANK EMPLOYEES UNION V. CONFESSOR (04)

UST, ETC. V. UST (09)

Bernard Meltzer, “The Subjects of Mandatory Bargaining”

V. Collective Bargaining: Process, Procedures and Issues 55

E. Collective Bargaining Agreement

1. Definition

TENIC, INC. V. TENIC, ETC. (09)

FACULTY ASSOC. OF MIT V. CA (07)

TSPI CORP. V. TSPI EMPLOYERS UNION (08)

HONDA PHILS. INC. V. SAMAHAN NG MALAYANG MANGGAGAWA SA HONDA (05)

UNIVERSITY OF THE IMMACULATE CONCEPCION, INC. V. SEC. OF LABOR (02)

NATIONAL FEDERATION OF LABOR V. CA (04)

RIVERA V. ESPIRITU (02)

2. Contents

a. See Sample CBA

b. Effect of substandard contract

Art. 239. 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;

CF. Amended Art. 239.

"ART. 239. 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."

c. Duration and re-negotiation

Art. 253-A. 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 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, 

V. Collective Bargaining: Process, Procedures and Issues 56

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. (As amended by Section 21, Republic Act No. 6715, March 21, 1989)

d. Grievance procedure

Art. 260. 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.

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.

SAN MIGUEL FOODS INC. V. SAN MIGUEL CORP. EMPLOYEES UNION, PTGWU (07)

UNITED KIMBERLY-CLARK EMPLOYEES UNION V. KIMBERLY-CLARK PHILS. INC. (06)

LUZON DEV. BANK ASSOC. V. ASSOCIATION OF DEV. BANK EMPLOYEES (95)

NAVARRO III V. DAMASCO (95)

SAN MIGUEL CORP V. CONFESSOR (96)

GENERAL MILLING V. CA (04)

3. Registration – Period, Requirements, and Actions

Art. 231. Registry of unions and file of collective bargaining agreements.  The Bureau shall keep a registry of legitimate labor organizations. The Bureau shall also maintain a file of all collective bargaining agreements and other related agreements and records of settlement of labor disputes and copies of orders and decisions of voluntary  arbitrators.  The  file  shall  be  open and accessible   to   interested  parties under conditions prescribed by the Secretary of Labor and Employment, provided that   no   specific   information   submitted   in   confidence   shall   be   disclosed   unless authorized by the Secretary, or when it is at issue in any judicial litigation, or when public interest or national security so requires.

Within thirty (30) days from the execution of a Collective Bargaining Agreement, the parties shall submit copies of the same directly to the Bureau or the Regional Offices of the Department of Labor and Employment for registration,  accompanied with verified proofs of  its posting in two conspicuous places in the place of work and ratification by the majority of all the workers in the bargaining unit. The Bureau or Regional  Offices shall  act  upon the application for registration of  such Collective Bargaining   Agreement  within   five   (5)   calendar   days   from   receipt   thereof.   The Regional Offices shall furnish the Bureau with a copy of the Collective Bargaining Agreement within five (5) days from its submission.

The   Bureau   or   Regional   Office   shall   assess   the   employer   for   every   Collective Bargaining   Agreement   a   registration   fee   of   not   less   than   one   thousand   pesos (P1,000.00) or in any other amount as may be deemed appropriate and necessary 

V. Collective Bargaining: Process, Procedures and Issues 57

by   the   Secretary   of   Labor   and   Employment   for   the   effective   and   efficient administration of the Voluntary Arbitration Program. Any amount collected under this provision shall accrue to the Special Voluntary Arbitration Fund.

The Bureau shall also maintain a file and shall undertake or assist in the publication of all final decisions, orders and awards of the Secretary of Labor and Employment, Regional Directors and the Commission. (As amended by Section 15, Republic Act No. 6715, March 21, 1989)

4. Contract Beneficiaries

Art. 255. 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.

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. 212. Definitions.

(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.

Beneficiaries

PAL V. PAL EMPLOYEES ASSOC. (08)

NEW PACIFIC TIMBER AND SUPPLY CO. INC., V. NLRC (00)

5. Contract Administration and Enforcement

1. Nature of Contract and Contract Interpretation

HALAGUENA V. PAL (09)

UNIV. OF SAN AGUSTIN, ETC. V. UNIV. OF SAN AGUSTIN (09)

DE LA SALLE UNIV. V. DE LA SALLE UNIV., ETC. (09)

CONTINENTAL STEEL V. MONTANO (09)

ALMARIO V. PAL (07)

PI MANUFACTURING INC. V. PI MANUFACTURING SUPERVISORS AND FOREMAN ASSOC. (08)

V. Collective Bargaining: Process, Procedures and Issues 58

TSPIC CORP. V. TSPIC EMPLOYEES UNION (08)

MANALANG V. ARTEX DEV’T CO., INC. (67)

2. Grievance Procedure; Dispute Settlement: Issues and Individual Grievance and Exclusive Bargaining Representative

MASTER IRON LABOR UNION V. NLRC (93)

PHIL. AIRLINES INC. V. SANTOS (93)

CALTEX REFINERY EMPLOYEES ASSOC. V. BRILLANTES (97)

3. Individual Worker and Contract

JL CASE CO. 321 US 332, 64 SUP. CT. 576 99 L. ED. (44)

4. Contract Infirmity

ASSOCIATED LABOR UNIONS V. CALLEJA (89)

5. Contract Duration and Renewals

Art. 253-A. 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 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. (As amended by Section 21, Republic Act No. 6715, March 21, 1989)

FVC LABOR UNION, ETC. V. SAMA-SAMANG, ETC. (09)

MANILA ELECTRIC CO. V. QUISUMBING (99)

MANILA CENTRAL LINE CORP. V. MANILA CENTRAL LINE FREE WORKERS UNION (00)

RIVERA V. ESPIRITU (02)

6. CBA and 3rd Party Applicability

SUNDOWNER DEVELOPLENT CORP. V. DRILON (89)

V. Collective Bargaining: Process, Procedures and Issues 59

MANILOS V. NLRC (95)

7. CBA and Disaffiliation – Substitution Doctrine

ELISO-ELIROL LABOR UNION V. NORIEL (77)

8. CBA Assistance – DOLE

Chapter IIASSISTANCE TO LABOR ORGANIZATIONS

Art. 267. Assistance by the Department of Labor. The Department of Labor, at the initiative   of   the   Secretary   of   Labor,   shall   extend   special   assistance   to   the organization,   for   purposes  of   collective  bargaining,   of   the  most   underprivileged workers  who,   for   reasons  of   occupation,   organizational   structure  or   insufficient incomes, are not normally covered by major labor organizations or federations.

Art. 268. Assistance by the Institute of Labor and Manpower Studies. The Institute of Labor and Manpower Studies shall render technical and other forms of assistance to labor organizations and employer organizations in the field of labor education, especially pertaining to collective bargaining, arbitration, labor standards and the Labor Code of the Philippines in general.

9.Effect Expiry

Art. 253. 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.

FACULTY ASSOC. OF MIT V. CA (07)

NEW PACIFIC TIMBER AND SUPPLY CO. V. NLRC (00)

MANILA ELECTRIC V. QUISUMBING (00)

CITIZENS LABOR UNION V. CIR (66)

VI. Employer – Union Acts of Unfair Labor Practices – Acts Violative of Employee Rights to Self-Organization and Collective Bargaining 60

VI. Employer – Union Acts of Unfair Labor Practices –

Acts Violative of Employee Rights to Self-Organization and Collective Bargaining

I. Introductory Concepts

A. Definition and General Concept

Art. 212. Definitions.

(k) "Unfair labor practice" means any unfair labor practice as expressly defined by the Code.

Art. 247. Concept of unfair labor practice and procedure for prosecution thereof. Unfair   labor   practices   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, unfair labor practices are not only violations of the civil rights of both labor and management but are also criminal offenses against the State which shall be subject to prosecution and punishment as herein provided.

Subject   to   the   exercise   by   the   President   or   by   the   Secretary   of   Labor   and Employment of the powers vested in them by Articles 263 and 264 of this Code, the civil aspects of all cases involving unfair labor practices, which may include claims for actual, moral, exemplary and other forms of damages, attorney’s fees and other affirmative relief,  shall  be under the jurisdiction of the Labor Arbiters.  The Labor Arbiters shall give utmost priority to the hearing and resolution of all cases involving unfair labor practices. They shall resolve such cases within thirty (30) calendar days from the time they are submitted for decision.

Recovery of civil liability in the administrative proceedings shall bar recovery under the Civil Code.

No criminal prosecution under this Title may be instituted without a final judgment finding that an unfair labor practice was committed, having been first obtained in 

the preceding paragraph. During the pendency of such administrative proceeding, the running of the period of prescription of the criminal offense herein penalized shall be considered interrupted: Provided, however, that the final judgment in the administrative   proceedings   shall   not   be   binding   in   the   criminal   case   nor   be considered   as   evidence   of   guilt   but   merely   as   proof   of   compliance   of   the requirements therein set forth. (As amended by Batas Pambansa Bilang 70, May 1, 1980 and later further amended by Section 19, Republic Act No. 6715, March 21, 1989)

Definition

STERLING PRODUCTS INT. INC. V. SOL (63)

PHILCOM EES ASSOC. V. PHIL. GLOBAL COMMUNICATIONS (06)

GALAXIE STEEL WORKERS UNION V. NLRC (06)

B. Requisite Relationship

PHELPS-DODGE CORP. V. NLRB, 313 US 177 (41)

C. Construction

CALTEX FILIPINO MANAGERS AND SUPERVISORS ASSOC. V. CIR (72)

HK AND SHANGHAI BANK CORP. EE UNION V. NLRC (97)

VI. Employer – Union Acts of Unfair Labor Practices – Acts Violative of Employee Rights to Self-Organization and Collective Bargaining 61

D. Estoppel

STANDARD CHARTERED BANK V. CONFESSOR (04)

E. Law Nomenclature and Inter-relations Acts of ULP

Art. 212. Definitions.

(k) "Unfair labor practice" means any unfair labor practice as expressly defined by the Code.

Chapter IIUNFAIR LABOR PRACTICES OF EMPLOYERS

Art. 248. 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)

Chapter IIIUNFAIR LABOR PRACTICES OF LABOR ORGANIZATIONS

Art. 249. 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; 

VI. Employer – Union Acts of Unfair Labor Practices – Acts Violative of Employee Rights to Self-Organization and Collective Bargaining 62

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)

HK AND SHANGHAI BANK CORP. EE UNION V. NLRC (97)

REPUBLIC SAVINGS BANK V. CIR (67) – FERNANDO, J. CONCURRING OPINION, 240-241

F. ULP and Management Functions

ROYAL INTER-OCEAN LINES V. CIR (60)

GREAT PACIFIC LIFE EES UNION V. GREAT PACIFIC LIFE ASSURANCE CORP. (99)

PHILCOM EES UNION V. PHIL. GLOBAL COMMUNICATIONS (06)

REPUBLIC SAVINGS V. CIR (07)

G. Nature of Act

ALLIED BANKING CORP. V. CA (03)

II. Unfair Labor Practice: Employer and Labor Organization Acts Violating Right of Self-Organization

A. Specific Acts

1. Interference, Restraint and Coercion

Art. 248. 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;

Art. 255. 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.

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 

VI. Employer – Union Acts of Unfair Labor Practices – Acts Violative of Employee Rights to Self-Organization and Collective Bargaining 63

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. 277. Miscellaneous provisions.

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) 

h. In   establishments  where   no   legitimate   labor   organization   exists,   labor-management   committees   may   be   formed   voluntarily   by   workers   and employers for the purpose of promoting industrial peace. The Department of  Labor  and Employment  shall  endeavor   to  enlighten  and  educate   the workers and employers on their rights and responsibilities through labor education with emphasis on the policy thrusts of this Code. (As amended by Section 33, Republic Act No. 6715, March 21, 1989)

Art. 249. 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;

ILO Conv. 98. Article 1

1. Workers shall enjoy adequate protection against acts of anti-union discrimination in respect of their employment.

2. Such protection shall apply more particularly in respect of acts calculated to--

(a) make the employment of a worker subject to the condition that he shall not join a union or shall relinquish trade union membership;

(b)   cause   the  dismissal   of   or   otherwise  prejudice  a  worker   by   reason  of   union membership or because of participation in union activities outside working hours or, with the consent of the employer, within working hours.

Article 2

1. Workers' and employers' organisations shall enjoy adequate protection against any acts of interference by each other or each other's agents or members in their establishment, functioning or administration.

2. In particular, acts which are designed to promote the establishment of workers' organisations under the domination of employers or employers' organisations, or to support  workers'   organisations   by  financial   or   other  means,  with   the   object   of placing   such   organisations   under   the   control   of   employers   or   employers' organisations, shall be deemed to constitute acts of interference within the meaning of this Article.

2. Non-union Membership or Withdrawal from Membership as Condition Employment

Art. 248. Unfair labor practices of employers. It shall be unlawful for an employer to commit any of the following unfair labor practice:

(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;

3. Company Domination Union

Art. 248. Unfair labor practices of employers. It shall be unlawful for an employer to commit any of the following unfair labor practice:

(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;

Art. 212. Definitions.

(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.

4. Discrimination – encouraging/discouraging unionism

Art. 248. Unfair labor practices of employers. It shall be unlawful for an employer to commit any of the following unfair labor practice:

(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 

VI. Employer – Union Acts of Unfair Labor Practices – Acts Violative of Employee Rights to Self-Organization and Collective Bargaining 64

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;

Art. 249. Unfair labor practices of labor organizations. It   shall   be  unfair   labor practice for a labor organization, its officers, agents or representatives:

(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;

a. Retaliation testimony against employer

Art. 248. Unfair labor practices of employers. It shall be unlawful for an employer to commit any of the following unfair labor practice:

(f) To  dismiss,   discharge  or  otherwise  prejudice  or  discriminate  against  an employee   for  having given or  being about   to  give   testimony under   this Code;

b. Exaction – Featherbedding

Art. 249. Unfair labor practices of labor organizations. It   shall   be  unfair   labor practice for a labor organization, its officers, agents or representatives:

(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. Contracting out to discourage unionism

Art. 248. Unfair labor practices of employers. It shall be unlawful for an employer to commit any of the following unfair labor practice:

(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;

a. Interrogation

SCOTY’S DEPT. STORE V. MICALLER (56)

PHIL. STEAM NAVIGATION CO. V. PHIL. MARITIME OFFICERS GUILD (65)

b. Polling

OPERATING ENGINEERS LOCAL V. NLRB 353 F 2ND 852 (65)

c. Speech

THE INSULAR LIFE ASSURANCE CO. LTD. EES ASSOC. V. INSULAR LIFE ASSURANCE CO. LTD. (71)

INTERNATIONAL ASSOC OF MACHINISTS V. NLRB, 311 US 72 (40)

NLRB V. VIRGINIA ELECTRIC AND POWER CO. 314 US 469 (41)

VI. Employer – Union Acts of Unfair Labor Practices – Acts Violative of Employee Rights to Self-Organization and Collective Bargaining 65

NLRB V. GISSEL PACKING CO. 395 US 576 (69)

d. Espionage

THE INSULAR LIFE ASSURANCE CO. LTD. EES ASSOC. V. INSULAR LIFE ASSURANCE CO. LTD. (71)

e. Economic coercion and inducement

THE INSULAR LIFE ASSURANCE CO. LTD. EES ASSOC. V. INSULAR LIFE ASSURANCE CO. LTD. (71)

NLRB V. EXCHANGE PARTS CO., 375 US 405 (64)

f. Union solicitation and distribution of literature and meterials

LECHMERE, INC. V. NLRB 117 ED. 2D 79 (92)

REPUBLIC AVIATION CORP. V. NLRB, 324 US 793 (45)

NLRB V. BABCOCK AND WILCOX. CO., 351 IS 105 (56)

NLRB V. UNITED STEEL WORKERS OF AMERICA 357 US 357 (58)

g. Discrimination

WISE AND CO. INC. V. WISE AND CO. INC. EES UNION, NATU (89)

ME-SHUM CORP. V. ME-SHUM WORKERS UNION (05)

h. Run-away shop

IR Book V R1S1(s)  "Strike  Area"  means   the   establishment,  warehouse,   depots, plants or  offices,   including the sites or premises used as run-away shops,  of  the employer struck against, as well as the immediate vicinity actually used by picketing strikers in moving to and fro before all points of entrance to and exits from said establishment.

VI. Employer – Union Acts of Unfair Labor Practices – Acts Violative of Employee Rights to Self-Organization and Collective Bargaining 66

III. Unfair Labor Practice: Employer and labor organization acts violative of right to collective bargaining

A. Violate duty to bargain

Art. 248. 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. 249. Unfair labor practices of labor organizations. It   shall   be  unfair   labor practice for a labor organization, its officers, agents or representatives:

(c) To violate the duty,  or  refuse to bargain collectively  with the employer, provided it is the representative of the employees;

Title VIICOLLECTIVE BARGAINING AND ADMINISTRATION OF AGREEMENTS

Art. 250. Procedure in collective bargaining. The   following  procedures   shall   be observed 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  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)

Art. 251. 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. 252. 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 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. 253. 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.

NLRB V. GENERAL ELECTRIC CO., 418 F 2D 736 (69)

COLLEGIO DE SAN JUAN DE LETRAN V. ASSOCIATION OF EMPLOYEES AND FACULTY OF LETRAN (00)

GENERAL MILLING CO. V. CA (04)

VI. Employer – Union Acts of Unfair Labor Practices – Acts Violative of Employee Rights to Self-Organization and Collective Bargaining 67

B. Negotiation or Attorney’s fees

Art. 248. Unfair labor practices of employers. It shall be unlawful for an employer to commit any of the following unfair labor practice:

(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

Art. 249. Unfair labor practices of labor organizations. It   shall   be  unfair   labor practice for a labor organization, its officers, agents or representatives:

(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

C. Agency fee

Art. 248. Unfair labor practices of employers. It shall be unlawful for an employer to commit any of the following unfair labor practice:

D. Violate CBA

Art. 248. Unfair labor practices of employers. It shall be unlawful for an employer to commit any of the following unfair labor practice:

(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)

Art. 249. Unfair labor practices of labor organizations. It   shall   be  unfair   labor practice for a labor organization, its officers, agents or representatives:

(j) 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)

FLIGHT ATTENDANTS ETC. V. PAL (08)

PHILCOM EES UNION V. PHILIPPINE GLOBAL COMMUNICATIONS (69)

PHIL. AIRLINES INC. V. NLRC (97)

IV. Motive, Conduct, and Proof

A. Employer motive and proof

VISAYAN BICYCLE MANUFACTURING CO. INC. V. NATIONAL LABOR UNION (85)

MO-SHUM CORP. V. MO-SHUM WORKERS UNION (05)

B. Totality of conduct rule and effect of failure to act

UST, ETC. V. UST, ETC. (09)

VI. Employer – Union Acts of Unfair Labor Practices – Acts Violative of Employee Rights to Self-Organization and Collective Bargaining 68

INSULAR LIFE ASSURANCE CO. LTD. EES V. INSULAR LIFE ASSURANCE CO. LTD. (71)

V. Enforcement, Remedies and Sanctions

A. Parties against whom ULP committed

Chapter IIUNFAIR LABOR PRACTICES OF EMPLOYERS

Art. 248. 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)

Chapter IIIUNFAIR LABOR PRACTICES OF LABOR ORGANIZATIONS

Art. 249. 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; 

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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. 212. Definitions.

e. "Employer"   includes   any   person   acting   in   the   interest   of   an   employer, directly or indirectly. The term shall not include any labor organization or any of its officers or agents except when acting as employer. 

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. 

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.

PHELPS-DODGE CORP. V. NLRB, 313 US 177 (41)

B. Parties liable for acts

1. Employer

Art. 258, last par. 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)

Art. 212. Definitions.

e. "Employer"   includes   any   person   acting   in   the   interest   of   an   employer, directly or indirectly. The term shall not include any labor organization or any of its officers or agents except when acting as employer. 

BOOK SEVENTRANSITORY AND FINAL PROVISIONS

Title IPENAL PROVISIONS AND LIABILITIES

Art. 288. 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. 289. 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.

Title IIPRESCRIPTION OF OFFENSES AND CLAIMS

Art. 290. Offenses. Offenses penalized under this Code and the rules and regulations issued pursuant thereto shall prescribe in three (3) years.

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All  unfair   labor  practice  arising   from Book V shall  be  filed with  the appropriate agency within one (1) year from accrual of such unfair labor practice; otherwise, they shall be forever barred.

2. Labor organization

Art. 249. Unfair labor practices of labor organizations. It   shall   be  unfair   labor practice for a labor organization, its officers, agents or representatives:

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)

BOOK SEVENTRANSITORY AND FINAL PROVISIONS

Title IPENAL PROVISIONS AND LIABILITIES

Art. 288. 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. 289. 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.

Title IIPRESCRIPTION OF OFFENSES AND CLAIMS

Art. 290. Offenses. Offenses penalized under this Code and the rules and regulations issued pursuant thereto shall prescribe in three (3) years.

All  unfair   labor  practice  arising   from Book V shall  be  filed with  the appropriate agency within one (1) year from accrual of such unfair labor practice; otherwise, they shall be forever barred.

C. Prosecution and prescriptive period

1. Civil aspect

Art. 247. Concept of unfair labor practice and procedure for prosecution thereof, pars. 2-4. Consequently,  unfair  labor practices are not only violations of the civil rights of both labor and management but are also criminal offenses against the State which shall be subject to prosecution and punishment as herein provided.

Subject   to   the   exercise   by   the   President   or   by   the   Secretary   of   Labor   and Employment of the powers vested in them by Articles 263 and 264 of this Code, the civil aspects of all cases involving unfair labor practices, which may include claims for actual, moral, exemplary and other forms of damages, attorney’s fees and other affirmative relief,  shall  be under the jurisdiction of the Labor Arbiters.  The Labor Arbiters shall give utmost priority to the hearing and resolution of all cases involving unfair labor practices. They shall resolve such cases within thirty (30) calendar days from the time they are submitted for decision.

Recovery of civil liability in the administrative proceedings shall bar recovery under the Civil Code.

Art. 290. Offenses. Offenses penalized under this Code and the rules and regulations issued pursuant thereto shall prescribe in three (3) years.

All  unfair   labor  practice  arising   from Book V shall  be  filed with  the appropriate agency within one (1) year from accrual of such unfair labor practice; otherwise, they shall be forever barred.

2. Criminal aspect

Art. 247. Concept of unfair labor practice and procedure for prosecution thereof, last par. No criminal prosecution under this Title may be instituted without a final judgment finding that an unfair   labor practice was committed, having been first obtained in the preceding paragraph. During the pendency of such administrative proceeding, the running of the period of prescription of the criminal offense herein 

VI. Employer – Union Acts of Unfair Labor Practices – Acts Violative of Employee Rights to Self-Organization and Collective Bargaining 71

penalized   shall   be   considered   interrupted:   Provided,   however,   that   the   final judgment in the administrative proceedings shall not be binding in the criminal case nor be considered as evidence of guilt  but merely as proof of compliance of the requirements therein set forth. (As amended by Batas Pambansa Bilang 70, May 1, 1980 and later further amended by Section 19, Republic Act No. 6715, March 21, 1989)

Art. 290. Offenses. Offenses penalized under this Code and the rules and regulations issued pursuant thereto shall prescribe in three (3) years.

All  unfair   labor  practice  arising   from Book V shall  be  filed with  the appropriate agency within one (1) year from accrual of such unfair labor practice; otherwise, they shall be forever barred.

COCHANGCO WORKERS UNION V. NLRC (88)

D. Compromise

AFP MUTUAL BENEFIT ASSOC. INC. V. AFP-MBAI EU (60)

CCLG G. E. GOCHANGCO WORKERS UNION, ET. AL. V. NLRC (88)

REFORMISTS UNION OF RB LINER V. NLRC (97)

E. Remedies and sanctions

1. Civil remedies

Art. 247. Concept of unfair labor practice and procedure for prosecution thereof, pars. 2-3. Consequently,  unfair  labor practices are not only violations of the civil 

rights of both labor and management but are also criminal offenses against the State which shall be subject to prosecution and punishment as herein provided.

Subject   to   the   exercise   by   the   President   or   by   the   Secretary   of   Labor   and Employment of the powers vested in them by Articles 263 and 264 of this Code, the civil aspects of all cases involving unfair labor practices, which may include claims for actual, moral, exemplary and other forms of damages, attorney’s fees and other affirmative relief,  shall  be under the jurisdiction of the Labor Arbiters.  The Labor Arbiters shall give utmost priority to the hearing and resolution of all cases involving unfair labor practices. They shall resolve such cases within thirty (30) calendar days from the time they are submitted for decision.

Art. 223. Appeal. Decisions,  awards, or  orders of the Labor Arbiter are final and executory unless appealed to the Commission by any or both parties within ten (10) calendar days from receipt of such decisions, awards, or orders. Such appeal may be entertained only on any of the following grounds:

a. If there is prima facie evidence of abuse of discretion on the part of the Labor Arbiter; 

b. If   the  decision,  order  or  award  was  secured   through   fraud or   coercion, including graft and corruption; 

c. If made purely on questions of law; and 

d. If serious errors in the findings of facts are raised which would cause grave or irreparable damage or injury to the appellant.

In case of a judgment involving a monetary award, an appeal by the employer may be perfected only upon the posting of a cash or surety bond issued by a reputable bonding company duly accredited by the Commission in the amount equivalent to the monetary award in the judgment appealed from.

In any event, the decision of the Labor Arbiter reinstating a dismissed or separated employee, insofar as the reinstatement aspect is concerned, shall  immediately be executory,  even pending appeal.  The employee shall  either  be admitted back  to work   under   the   same   terms  and   conditions   prevailing   prior   to   his   dismissal   or separation or, at the option of the employer, merely reinstated in the payroll. The posting of a bond by the employer shall not stay the execution for reinstatement provided herein.

To discourage frivolous or dilatory appeals,  the Commission or the Labor Arbiter shall impose reasonable penalty, including fines or censures, upon the erring parties.

VI. Employer – Union Acts of Unfair Labor Practices – Acts Violative of Employee Rights to Self-Organization and Collective Bargaining 72

In all cases, the appellant shall furnish a copy of the memorandum of appeal to the other party who shall  file an answer not  later than ten (10) calendar days from receipt thereof.

The Commission shall decide all cases within twenty (20) calendar days from receipt of the answer of the appellee. The decision of the Commission shall be final and executory after ten (10) calendar days from receipt thereof by the parties.

Any   law  enforcement  agency  may  be  deputized  by   the   Secretary  of   Labor  and Employment   or   the   Commission   in   the   enforcement   of   decisions,   awards   or orders. (As amended by Section 12, Republic Act No. 6715, March 21, 1989)

Art. 279. Security of tenure. In cases of regular employment, the employer shall not terminate the services of an employee except for a just cause or when authorized by this  Title.  An employee who  is  unjustly  dismissed from work shall  be  entitled to reinstatement without  loss of seniority rights and other privileges and to his  full backwages,   inclusive  of  allowances,  and  to his  other  benefits  or   their  monetary equivalent computed from the time his compensation was withheld from him up to the time of his actual reinstatement. (As amended by Section 34, Republic Act No. 6715, March 21, 1989)

NUEVA ECIJA ELECTRIC COOPERATIVE, INC. V. NLRC (00)

2. Penal remedies

Art. 247. Concept of unfair labor practice and procedure for prosecution thereof, par. 2. Consequently, unfair labor practices are not only violations of the civil rights of  both  labor  and management but are also  criminal  offenses  against  the State which shall be subject to prosecution and punishment as herein provided.

Title IPENAL PROVISIONS AND LIABILITIES

Art. 288. 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. 289. 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.

Title IIPRESCRIPTION OF OFFENSES AND CLAIMS

Art. 290. Offenses. Offenses penalized under this Code and the rules and regulations issued pursuant thereto shall prescribe in three (3) years.

All  unfair   labor  practice  arising   from Book V shall  be  filed with  the appropriate agency within one (1) year from accrual of such unfair labor practice; otherwise, they shall be forever barred.

VII. Economic Weapons – Strikes and Lockouts 73

VII. Economic Weapons:Strikes and Lockouts

I. Basis of right to engage in concerted activities

A. Constitution

ARTICLE XIII

LABOR

Section 3. 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.

LUZON MARINE DEPT. UNION V. ROLDAN (50)

STAMFORD MARKETING CORP. V. JULIAN (04)

B. Statutory

Art. 263. Strikes, picketing and lockouts.

(b) Workers shall have the right to engage in concerted activities for purposes of collective   bargaining   or   for   their   mutual   benefit   and   protection.   The   right   of legitimate   labor  organizations   to  strike  and  picket  and  of  employers   to   lockout, consistent with the national interest, shall continue to be recognized and respected. However,  no  labor union may strike and no employer may declare a  lockout on grounds involving inter-union and intra-union disputes.

BLT BUS CO. V. NLRC (92)

LAPANDAY WORKERS’ UNION V. NLRC (95)

GRAND BOULEVARD HOTEL V. GRAND LABOR ORGANIZATION (03)

D. International Covenant on Economic, Social, and Cultural Rights

Article 8

1. The States Parties to the present Covenant undertake to ensure:

 (d) The right to strike, provided that it is exercised in conformity with the laws of the particular country.

Article 2

1. Each State Party to the present Covenant undertakes to take steps, individually and   through   international  assistance  and  co-operation,  especially  economic  and technical,   to   the  maximum of   its  available   resources,  with  a   view   to  achieving progressively the full realization of the rights recognized in the present Covenant by all appropriate means, including particularly the adoption of legislative measures.

VII. Economic Weapons – Strikes and Lockouts 74

2. The States Parties to the present Covenant undertake to guarantee that the rights enunciated in the present Covenant will be exercised without discrimination of any kind as to race, colour, sex, language, religion, political or other opinion, national or social origin, property, birth or other status.

3.   Developing   countries,   with   due   regard   to   human   rights   and   their   national economy, may determine to what extent they would guarantee the economic rights recognized in the present Covenant to non-nationals.

Article 3

The States Parties to the present Covenant undertake to ensure the equal right of men and women to the enjoyment of all  economic, social and cultural rights set forth in the present Covenant.

II. Limitations

AGUANZA V. ASIAN TERMINAL (09)

MANILA HOTEL EES ASSOC. V. MANILA HOTEL CORP. (07)

STAMFORD MARKETING CORP. V. JULIAN (04)

BISIG NG MANGGAGAWA V. NLRC (93)

LAPANDAY WORKERS’ UNION V. NLRC (95)

III. Strike activity

A. Definition

Art. 212. Definitions.

o. "Strike" means any temporary stoppage of work by the concerted action of employees as a result of an industrial or labor dispute. 

p. "Lockout" means any temporary refusal of an employer to furnish work as a result of an industrial or labor dispute.

PILIPINO TELEPHONE CORP. V. FILIPINO TELEPHONE EES ASSOC (07)

GRAND TRANSPORT CORP. V. INFANTE (07)

TOYOTA MOTORS PHILS. CORP. V. WORKERS UNION (07)

G & S TRANSPORT CORP. V. INFANTE (07)

B. Nature and purpose

PHIL. CAN CO. V. CIR (50)

VII. Economic Weapons – Strikes and Lockouts 75

C. Effect on work relationship

ELIZALDE ROPE FACTORY INC. V. SSS (62)

D. Types, Changes and Conversion

1. Types

a. Unfair labor practice

Art. 263. Strikes, picketing and lockouts.

(c) In case of bargaining deadlocks, the duly certified or recognized bargaining agent may file a notice of strike or the employer may file a notice of lockout with the Ministry at least 30 day before the intended date thereof. In cases of unfair labor practice, the period of notice shall be 15 days and in the absence of a duly certified or recognized bargaining agent, the notice of strike  may be filed by any  legitimate  labor  organization  in behalf  of   its members. However, in case of dismissal from employment of union officers duly elected in accordance with the union constitution and by-laws, which may   constitute   union   busting,   where   the   existence   of   the   union   is threatened,  the 15-day cooling-off period shall  not  apply  and the union may take action immediately. (As amended by Executive Order No.  111, December 24, 1986)

LUZON STEVEDORING CORP. V. CIR (65)

b. Bargaining deadlock – economic

Art. 263. Strikes, picketing and lockouts.

(c) In case of bargaining deadlocks, the duly certified or recognized bargaining agent may file a notice of strike or the employer may file a notice of lockout with the Ministry at least 30 day before the intended date thereof. In cases of unfair labor practice, the period of notice shall be 15 days and in the absence of a duly certified or recognized bargaining agent, the notice of strike  may be filed by any  legitimate  labor  organization  in behalf  of   its 

members. However, in case of dismissal from employment of union officers duly elected in accordance with the union constitution and by-laws, which may   constitute   union   busting,   where   the   existence   of   the   union   is threatened,  the 15-day cooling-off period shall  not  apply  and the union may take action immediately. (As amended by Executive Order No.  111, December 24, 1986)

CONSOLIDATED LABOR ASSOC. OF THE PHILS. V MARSMAN AND CO. (64)

2. Change in type

CONSOLIDATED LABOR ASSOC. OF THE PHILS. V. MARSMAN AND CO. (64)

3. Non-conversion – Strike to lockout

RIZAL CEMENT WORKERS UNION V. CIR (62)

IV. Grounds

A. Allowable strikes

Art. 263. Strikes, picketing and lockouts.

(c) In case of bargaining deadlocks, the duly certified or recognized bargaining agent may file a notice of strike or the employer may file a notice of lockout with the Ministry at least 30 day before the intended date thereof. In cases of unfair labor practice, the period of notice shall be 15 days and in the absence of a duly certified or recognized bargaining agent, the notice of strike  may be filed by any  legitimate  labor  organization  in behalf  of   its members. However, in case of dismissal from employment of union officers duly elected in accordance with the union constitution and by-laws, which may   constitute   union   busting,   where   the   existence   of   the   union   is 

VII. Economic Weapons – Strikes and Lockouts 76

threatened,  the 15-day cooling-off period shall  not  apply  and the union may take action immediately. (As amended by Executive Order No.  111, December 24, 1986)

B. Prohibited strikes

Art. 263. Strikes, picketing and lockouts. 

(b) Workers shall have the right to engage in concerted activities for purposes of collective bargaining or for their  mutual  benefit and protection. The right of legitimate labor organizations to strike and picket and of employers to lockout, consistent   with   the   national   interest,   shall   continue   to   be   recognized   and respected. However, no labor union may strike and no employer may declare a lockout on grounds involving inter-union and intra-union disputes.

Art. 212. Definitions.

(q) "Internal union dispute" includes all disputes or grievances arising from any violation of or disagreement over any provision of the constitution and by laws of   a   union,   including   any   violation   of   the   rights   and   conditions   of   union membership provided for in this Code.

Art. 263. Strikes, picketing and lockouts.

(g) When, in his opinion, there exists a labor dispute causing or likely to cause a strike or lockout in an industry indispensable to the national interest, the Secretary of Labor and Employment may assume jurisdiction over the dispute and decide it or certify the same to the Commission for compulsory arbitration. Such assumption or certification   shall   have   the   effect   of   automatically   enjoining   the   intended   or impending strike or lockout as specified in the assumption or certification order. If one has already taken place at the time of assumption or certification, all striking or locked   out   employees   shall   immediately   return-to-work   and   the   employer   shall immediately resume operations and readmit all workers under the same terms and conditions   prevailing   before   the   strike   or   lockout.   The   Secretary   of   Labor   and Employment   or   the   Commission  may   seek   the   assistance   of   law   enforcement agencies to ensure compliance with this provision as well as with such orders as he may issue to enforce the same.

In line with the national concern for and the highest respect accorded to the right of patients   to   life  and  health,   strikes  and   lockouts   in   hospitals,   clinics  and   similar medical   institutions   shall,   to   every   extent   possible,   be   avoided,   and   all   serious efforts, not only by labor and management but government as well, be exhausted to substantially minimize, if not prevent, their adverse effects on such life and health, through   the  exercise,  however   legitimate,  by   labor  of   its   right   to   strike  and  by 

management   to   lockout.   In   labor   disputes   adversely   affecting   the   continued operation of such hospitals, clinics or medical institutions, it shall be the duty of the striking union or locking-out employer to provide and maintain an effective skeletal workforce of medical and other health personnel,  whose movement and services shall be unhampered and unrestricted, as are necessary to insure the proper and adequate protection of the life and health of its patients, most especially emergency cases,   for   the   duration   of   the   strike   or   lockout.   In   such   cases,   therefore,   the Secretary of Labor and Employment may immediately assume, within twenty four (24) hours from knowledge of the occurrence of such a strike or lockout, jurisdiction over the same or certify it to the Commission for compulsory arbitration. For this purpose, the contending parties are strictly enjoined to comply with such orders, prohibitions   and/or   injunctions   as   are   issued   by   the   Secretary   of   Labor   and Employment   or   the   Commission,   under   pain   of   immediate   disciplinary   action, including  dismissal  or   loss  of  employment  status  or  payment  by   the   locking-out employer   of   backwages,   damages   and   other   affirmative   relief,   even   criminal prosecution against either or both of them.

The   foregoing   notwithstanding,   the   President   of   the   Philippines   shall   not   be precluded from determining the industries that, in his opinion, are indispensable to the national interest, and from intervening at any time and assuming jurisdiction over any such labor dispute in order to settle or terminate the same.

Art. 264. 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 

VII. Economic Weapons – Strikes and Lockouts 77

employment, even if a replacement had been hired by the employer during such lawful strike.

Art. 265. Improved offer balloting. In an effort to settle a strike, the Department of Labor and Employment shall conduct a referendum by secret ballot on the improved offer  of   the  employer  on or  before  the 30th  day of   the strike.  When at   least  a majority   of   the   union  members   vote   to   accept   the   improved  offer   the   striking workers shall immediately return to work and the employer shall thereupon readmit them upon the signing of the agreement.

In case of a lockout, the Department of Labor and Employment shall also conduct a referendum by secret balloting on the reduced offer of the union on or before the 30th  day  of   the   lockout.  When at   least  a  majority  of   the  board of  directors  or trustees or the partners holding the controlling interest in the case of a partnership vote to accept the reduced offer, the workers shall immediately return to work and the   employer   shall   thereupon   readmit   them   upon   the   signing   of   the agreement. (Incorporated by Section 28, Republic Act No. 6715, March 21, 1989)

ILAW AT BUKLOD NG MANGGAGAWA (IBM) V. NLRC (65)

GRAND BOULEVARD HOTEL V. GENUINE LABOR ORGANIZATION (03)

BAUTISTA V. CA (05)

C. No strike clause

PANAY ELECTRIC CO. V. NLRC (95)

MALAYANG SAMAHAN NG MGA MANGGAGAWA SA GREENFIELD V. RAMOS

V. Striking lockout party

Art. 263. Strikes, picketing and lockouts.

(b) Workers shall have the right to engage in concerted activities for purposes of collective   bargaining   or   for   their   mutual   benefit   and   protection.   The   right   of legitimate   labor  organizations   to  strike  and  picket  and  of  employers   to   lockout, consistent with the national interest, shall continue to be recognized and respected. However,  no  labor union may strike and no employer may declare a  lockout on grounds involving inter-union and intra-union disputes.

(c) In case of bargaining deadlocks, the duly certified or recognized bargaining agent may file a notice of strike or the employer may file a notice of  lockout with the Ministry at least 30 day before the intended date thereof. In cases of unfair labor practice, the period of notice shall be 15 days and in the absence of a duly certified or recognized bargaining agent, the notice of strike may be filed by any legitimate labor  organization  in  behalf  of   its  members.  However,   in  case of  dismissal   from employment of union officers duly elected in accordance with the union constitution and by-laws, which may constitute union busting, where the existence of the union is threatened, the 15-day cooling-off period shall not apply and the union may take action immediately. (As amended by Executive Order No. 111, December 24, 1986)

VI. Procedural requirements

A. Effort bargain

Art. 264. 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.

VII. Economic Weapons – Strikes and Lockouts 78

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. 

Art. 250. Procedure in collective bargaining. The   following  procedures   shall   be observed 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  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)

Art. 251. 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. 252. 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 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.

B. Filing of notice intention

Art. 263. Strikes, picketing and lockouts.

(c) In case of bargaining deadlocks, the duly certified or recognized bargaining agent may file a notice of strike or the employer may file a notice of lockout with the Ministry at least 30 day before the intended date thereof. In cases of unfair labor practice, the period of notice shall be 15 days and in the absence of a duly certified or recognized bargaining agent, the notice of strike  may be filed by any  legitimate  labor  organization  in behalf  of   its members. However, in case of dismissal from employment of union officers duly elected in accordance with the union constitution and by-laws, which may   constitute   union   busting,   where   the   existence   of   the   union   is threatened,  the 15-day cooling-off period shall  not  apply  and the union may take action immediately.  (As amended by Executive Order No. 111, December 24, 1986)

(d) The   notice  must   be   in   accordance   with   such   implementing   rules   and regulations as the Minister of Labor and Employment may promulgate.

(e) During the cooling-off period, it shall be the duty of the Ministry to exert all efforts   at  mediation   and   conciliation   to   effect   a   voluntary   settlement. Should the dispute remain unsettled until the lapse of the requisite number of days from the mandatory filing of the notice, the labor union may strike or the employer may declare a lockout.

Art. 264. 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 

VII. Economic Weapons – Strikes and Lockouts 79

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. 

C. Observance of cooling off period

Art. 263. Strikes, picketing and lockouts.

(c) In case of bargaining deadlocks, the duly certified or recognized bargaining agent may file a notice of strike or the employer may file a notice of lockout with the Ministry at least 30 day before the intended date thereof. In cases of unfair labor practice, the period of notice shall be 15 days and in the absence of a duly certified or recognized bargaining agent, the notice of strike  may be filed by any  legitimate  labor  organization  in behalf  of   its members. However, in case of dismissal from employment of union officers duly elected in accordance with the union constitution and by-laws, which may   constitute   union   busting,   where   the   existence   of   the   union   is threatened,  the 15-day cooling-off period shall  not  apply  and the union may take action immediately.  (As amended by Executive Order No. 111, December 24, 1986)

(e) During the cooling-off period, it shall be the duty of the Ministry to exert all efforts   at  mediation   and   conciliation   to   effect   a   voluntary   settlement. Should the dispute remain unsettled until the lapse of the requisite number of days from the mandatory filing of the notice, the labor union may strike or the employer may declare a lockout.

Art. 250. 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 

duty  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)

HOTEL ENTERPRISES, ETC. V. SAMAHAN, ETC. (09)

NATIONAL UNION OF WORKERS IN HOTELS, ETC. V. CA (08)

PILIPINO TELEPHONE CORP. V. FILIPINO TELEPHONE EES ASSOC. (07)

G AND S TRANSPORT CORP. V. INFANTE (07)

GRAND BOULEVARD HOTEL V. GENUINE LABOR ORGANIZATION (03)

SAN MIGUEL CORP. V. NLRC (03)

VII. Economic Weapons – Strikes and Lockouts 80

PIÑERO V. NLRC (04)

SAMAHANG MANGGAGAWA V. SULPICIO LINES (04)

CAPITOL MEDICAL CENTER, INC. V. NLRC (05)

BUKLURAN NG MANGGAGAWA SA CLOTHMAN KNITTING CORP. – SOLIDARITY UNIONS IN THE PHILS FOR EMPLOYMENT AND REFORMS V. CA (05)

VII. Test of legality

A. Legal strikes

1. Purpose and means test

Art XIII Section 3. 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-organizations,   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 on investments, and to expansion and growth.

Art. 263. Strikes, picketing and lockouts.

b. Workers shall have the right to engage in concerted activities for purposes of collective bargaining or for their mutual benefit and protection. The right of legitimate labor organizations to strike and picket and of employers to lockout,   consistent   with   the   national   interest,   shall   continue   to   be recognized  and   respected.  However,   no   labor  union  may   strike  and  no employer may declare a lockout on grounds involving inter-union and intra-union disputes.

HOTEL ENTERPRISES, ETC. V. SAMAHAN, ETC. (09)

NATIONAL UNION OF WORKERS IN HOTELS, ETC. V. CA (08)

LUZON MARITIME DEPT. UNION V. ROLDAN (50)

CALTEX PHIL. INC. V. PHIL LABOR ORGS, CALTEX CHAPTER (53)

PHIL. MARITIME OFFICERS GUILD V. CIA. MARITIMA (68)

VII. Economic Weapons – Strikes and Lockouts 81

UNION OF FILPRO EES V. NESTLE PHILS. INC. (90)

RELIANCE SURETY AND INSURANCE CO. V. NLRC (91)

ILAW AT BUKLOD NG MANGGAGAWA V. DIRECTOR (79)

ASSOC. OF INDEPENDENT UNIONS V. NLRC (99)

SAN MIGUEL CORP. V. NLRC (03)

MALAYANG SAMAHAN NG MGA MANGGAGAWA SA M. GREENFIELD V. RAMOS (00)

2. Guidelines and Balancing of Interest

SHELL OIL WORKERS UNION V. SHELL CO. OF PHILS. (71)

ALMIRA V. BF GOODRICH (74)

3. Defenses – Good faith – ULP

INTERWOOD EES ASSOC. V. INTERNATIONAL HARDWOOD (56)

NATIONAL UNION OF WORKERS HOTELS, RESTAURANT, AND ALLIED INDUSTRIES V. NLRC (98)

PNOC DOCKYARD V. NLRC (98)

B. Illegal strikes

1. Basis – Illegality

Art. 263. Strikes, picketing and lockouts.

(b) Workers shall have the right to engage in concerted activities for purposes of collective bargaining or for their mutual benefit and protection. The right of legitimate labor organizations to strike and picket and of employers to lockout,   consistent   with   the   national   interest,   shall   continue   to   be recognized  and   respected.  However,   no   labor  union  may   strike  and  no employer may declare a lockout on grounds involving inter-union and intra-union disputes. 

(c) In case of bargaining deadlocks, the duly certified or recognized bargaining agent may file a notice of strike or the employer may file a notice of lockout with the Ministry at least 30 day before the intended date thereof. In cases of unfair labor practice, the period of notice shall be 15 days and in the absence of a duly certified or recognized bargaining agent, the notice of strike  may be filed by any  legitimate  labor  organization  in behalf  of   its members. However, in case of dismissal from employment of union officers duly elected in accordance with the union constitution and by-laws, which may   constitute   union   busting,   where   the   existence   of   the   union   is threatened,  the 15-day cooling-off period shall  not  apply  and the union 

VII. Economic Weapons – Strikes and Lockouts 82

may take action immediately.  (As amended by Executive Order No. 111, December 24, 1986)

Art. 264. 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. 

Art. 265. Improved offer balloting. In an effort to settle a strike, the Department of Labor and Employment shall conduct a referendum by secret ballot on the improved offer  of   the  employer  on or  before  the 30th  day of   the strike.  When at   least  a majority   of   the   union  members   vote   to   accept   the   improved  offer   the   striking workers shall immediately return to work and the employer shall thereupon readmit them upon the signing of the agreement.

In case of a lockout, the Department of Labor and Employment shall also conduct a referendum by secret balloting on the reduced offer of the union on or before the 30th  day  of   the   lockout.  When at   least  a  majority  of   the  board of  directors  or trustees or the partners holding the controlling interest in the case of a partnership vote to accept the reduced offer, the workers shall immediately return to work and the   employer   shall   thereupon   readmit   them   upon   the   signing   of   the agreement. (Incorporated by Section 28, Republic Act No. 6715, March 21, 1989)

SUKHOTAL CUISINE ETC. V. CA (06)

ALLIED BANKING CORP. V. NLRC (96)

INTERPHIL LABORATORIES EES UNION V. INTERPHIL LABORATORIES (98)

SAMAHAN NG MGA MANGGAGAWA V. NLRC (00)

PHIL. DIAMOND HOTEL AND RESORT INC. V. MANILA DIAMOND HOTEL EMPLOYEES UNION (06)

2. Effect of illegality

Art. 264. 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 

VII. Economic Weapons – Strikes and Lockouts 83

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. 

NATIONAL UNION OF WORKERS IN HOTELS, ETC. V. CA (08)

TOYOTA MOTORS PHILS. CORP. V. WORKERS ASSOC. (TMPCWA) V. NLRC (07)

G AND S TRANSPORT CORP. V. INFANTE (07)

NISSAN MOTORS V. SEC. DOLE (06)

PHILCOM EES UNION V. PHIL. GLOBAL COMMUNICATIONS (06)

GRAND BOULEVARD HOTEL V. GENUINE LABOR ORGANIZATION (03)

SAN JUAN DE DIOS V. SAN JUAN DE DIOS (04)

STAMFORD MARKETING CORP V. JULIAN (04)

PHIL. DIAMOND HOTEL AND RESORT INC. V. MANILA DIAMOND HOTEL EMPLOYEES UNION (06)

ARELLANO UNIV. EES UNION V. CA (06)

3. Employment of strikes breakers

Art. 264. Prohibited activities.

(c) No employer shall use or employ any strike-breaker, nor shall any person be employed as a strike-breaker.

Art. 212. Definitions. (r) "Strike-breaker" means any person who obstructs, impedes, or interferes with by force, violence, coercion, threats, or intimidation any peaceful picketing affecting wages, hours or conditions of work or in the exercise of the right of self-organization or collective bargaining.

5. Strike area and run-away shop

BOOK FIVE Labor Relations

RULE I Definition of Terms

SECTION 1. Definition of terms. —

(a) "Commission" means the National Labor Relations Commission.

(b) "Bureau" means the Bureau of Labor Relations and/or the Industrial Relations Division in the Regional Offices of the Department of Labor and Employment.

(c) "Board" means the National Conciliation and Mediation Board.

VII. Economic Weapons – Strikes and Lockouts 84

(d) "Code" means the Labor Code of the Philippines, as amended.

(e) "Employer" includes any person acting in the interest of an employer, directly or indirectly. The term shall not include any labor organization or any of its officers or agents except when acting as employer.

(f) "Employee" includes any person in the employ of a particular 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.

(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.

(h) "Local Union" means any labor organization operating at the enterprise level.

(i) "National Union/Federation" means any labor organization with at least ten (10) locals or chapters each of which must be a duly recognized collective bargaining agent.

(j)  "Legitimate Labor Organization" means any labor organization duly registered with the Department of Labor and Employment and includes any branch, local or affiliate thereof.

(k) "Company Union" means any labor organization whose formation, function or administration has been assisted by any act defined as unfair labor practice by the Code.

(l) "Bargaining Representative" means a legitimate labor organization or any duly authorized officer or agent of such organization whether or not employed by the employer.

(m) "Unfair Labor Practice" means any unfair labor practice as expressly defined in the Code.

(n)   "Labor  or   Industrial  Dispute"   includes  any   controversy  or  matter   concerning terms or conditions of employment or the association or representation of persons in   negotiating   the   fixing,   maintaining,   changing   or   arranging   of   terms   and conditions of employment regardless of whether or not the disputants stand in the proximate relationship of employers and employees.

(o) "Managerial Employee" is one who is vested with powers or prerogatives to lay down and execute management policies and/or to hire, transfer, suspend, layoff, 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 require 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.

(p) "Voluntary Arbitrator" means any person accredited by the Board as such, or any person named or designated in the collective bargaining agreement, by the parties to act as their voluntary arbitrator, or one chosen, with or without the assistance of the National Conciliation and Mediation Board, pursuant to a selection procedure agreed upon  in the collective bargaining agreement,  or  any official  that  may be authorized by the Secretary of Labor and Employment to act as voluntary arbitrator upon the written request and agreement of the parties to a labor dispute.

(q)   "Strike"  means  any   temporary   stoppage of  work  by   the  concerted  action of employees as a result of a labor or industrial dispute.

(r) "Strike-Breaker" means any person who obstructs, impedes, or interferes with by force,   violence,   coercion,   threats   or   intimidation   any   peaceful   picketing   by employees  during any   labor  controversy  affecting wages,  hours  or  conditions  of work or in the exercise of the right of self-organization or collective bargaining.

(s)   "Strike  Area"  means  the  establishment,  warehouse,  depots,  plants  or  offices, including   the   sites  or  premises  used  as   run-away  shops,  of   the  employer   struck against,  as  well  as   the   immediate  vicinity  actually  used  by  picketing   strikers   in moving to and fro before all points of entrance to and exits from said establishment.

(t) "Lockout" means the temporary refusal of an employer to furnish work as a result of a labor or industry dispute.

(u)  "Internal  Union Dispute"   includes all  disputes or  grievances  arising  from any violation of or disagreement over any provision of the constitution and by-laws of a union,   including any violation of   the rights  and conditions  of  union membership provided for in this Code.

(v) "Appeal" means the elevation by an aggrieved party of any decision, order or award of a lower body to a higher body, by means of a pleading which includes the assignment of errors, memorandum of arguments in support thereof, and the reliefs prayed for. A mere notice of appeal, therefore, does not constitute the appeal as herein defined and understood,  and shall  not stop the running of  the period for perfecting an appeal.

VII. Economic Weapons – Strikes and Lockouts 85

(w) "Perfection of an Appeal" includes the filing within the prescribed period, of the memorandum of appeal containing, among others, the assignment of error/s, the argument in support thereof, the reliefs sought and posting of the appeal bond.

(x) "Certification Election" means the process of determining, through secret ballot, the   sole   and   exclusive   bargaining   agent   of   the   employees   in   an   appropriate bargaining unit, for purposes of collective bargaining.

(y) "Consent Election" means the election voluntarily agreed upon by the parties to determine the issue of majority representation of all the workers in the appropriate collective bargaining unit.

(z) "Run-Off" refers to an election between the labor unions receiving the two (2) higher number of voters when a certification election which provides for three (3) or more choices results in no choice receiving a majority of the valid votes cast, where the total number of votes for all contending unions is at least fifty percent (50%) of the number of votes cast.

(aa)  "Registration of  Agreement"  refers   to   the filing of   the collective bargaining agreement with the Regional Office or the Bureau accompanied by verified proof of posting and ratification and payment of fee.

(bb)   "Organized   Establishment"   refers   to   a   firm   or   company  where   there   is   a recognized or certified exclusive bargaining agent.

(cc)  "Registration Proceedings"  refer   to proceedings   involving the application for registration of labor organizations.

(dd)   "Cancellation   Proceeding"   is   the   process   leading   to   the   revocation   of   the registration certificate of a labor organization after due process.

(ee) "Hearing Officers" are officers appointed/designated in the Regional Office and authorized to hear and decide cases under Section 2 of Republic Act No. 6715 and whose decision is appealable to the Commission.

(ff) "Union Accounts Examiners" are officials in the Bureau or the Industrial Relations Division in the Regional Office empowered to audit books of accounts of the union.

(gg)   "Representation  Officer"   refer   to  a  person  duly  authorized   to   conduct  and supervise certification elections in accordance with Rule VI of this Book.

(hh)   "Term of  Office"  means   the   tenure  of  office  of   elected  officials   of  a   labor organization which is for a fixed period of five (5) years.

(ii) "Cabo" refers to a person or group or persons or to a labor group which, in the guise of a labor organization, supplies workers to an employer, with or without any monetary   or   other   consideration  whether   in   the   capacity   of   an   agent   of   the employer or as an ostensible independent contractor.

(jj) "Collective Bargaining Agreement" refers to the negotiated contract between a legitimate labor organization and the employer concerning wages, hours of work and all other terms and conditions of employment in a bargaining unit, including mandatory provisions for grievances and arbitration machineries.

(kk) "Med-Arbiter" is an official in the Regional Office authorized to hear, conciliate, mediate and decide representation cases, internal union and inter-union disputes.

(ll)   "Administrator"   refers   to   the   Administrator   of   the   Philippine   Overseas Employment Administration or the National Conciliation and Mediation Board as the context so indicates.

RULE II Registration of Unions

SECTION 1. Who may join unions. — All persons employed in commercial, industrial and   agricultural   enterprises,   including   employees   of   government   corporations established under the Corporation Code as well as employees of religious, medical or educational   institutions  whether   operating   for   profit   or   not,   except  managerial employees, shall have the right to self-organization and to form, join or assist labor organizations   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.

Supervisory employees and security guards 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;   Provided,   that   those   supervisory employees who are included in an existing rank-and-file bargaining unit, upon the effectivity of Republic Act No. 6715, shall remain in that unit; Provided, further, that alien employees with valid working permits issued by the Department of Labor and Employment  may  exercise   the   right   to   self-organization  and   join  or  assist   labor organizations 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.

VII. Economic Weapons – Strikes and Lockouts 86

For   the purpose of   this  Section,  any employee,  whether  employed for  a  definite period   or   not,   shall,   beginning   on   the   first   day   of   his   service,   be   eligible   for membership in the union.

SECTION 2. Where to file application; procedure. — Any national labor organization or labor federation or local union may file an application for registration with the Bureau or the Regional Office where the applicant's principal office is located. The Bureau or the Regional Office shall immediately process and approve or deny the application. In case of approval, the Bureau or the Regional Office shall  issue the registration   certificate   within   thirty   (30)   calendar   days   from   receipt   of   the application,   together   with   all   the   requirements   for   registration   as   hereinafter provided.

SECTION 3. Union affiliation; direct membership with national union. — An affiliate of a  labor federation or national  union may be a  local  or chapter thereof or an independently registered union.

(a) The labor federation or national union concerned shall issue a charter certificate indicating the creation or establishment of a local or chapter, copy of which shall be submitted to the Bureau of Labor Relations within thirty (30) days from issuance of such charter certificate.

(b)  An  independently  registered union shall  be  considered an affiliate  of  a   labor federation  or  national  union  after   submission   to   the  Bureau  of   the   contract  or agreement of affiliation within thirty (30) days after its execution.

(c) All existing labor federations or national unions are required to submit a list of all their  affiliates,   their  addresses  and   including   the  names  and  addresses  of   their respective officials, to the Bureau within thirty (30) days from effectivity of these Rules.

(d)   All   existing   labor   federations   or   national   unions   with   direct   members   are required   to   organize   said  members   into   locals   or   chapters   in   their   respective companies or establishments within sixty (60) days from effectivity of these Rules.

(e)  The   local  or   chapter  of  a   labor   federation  or  national  union  shall  have  and maintain   constitution   and   by-laws,   set   of   officers   and   books   of   accounts.   For reporting   purposes,   the   procedure   governing   the   reporting   of   independently registered unions, federations or national unions shall be observed.

(f) No person who is not an employee or worker of the company or establishment where   an   independently   registered   union,   affiliate,   local   or   chapter   of   a   labor federation or national union operates shall henceforth be elected or appointed as an officer of such union, affiliate, local or chapter.

SECTION 4. Requirements for registration of local unions; applications. — The application   for   registration  of   a   local   union   shall   be   signed  by  at   least   twenty percent   (20%)   of   the   employees   in   the   appropriate   bargaining   unit  which   the applicant union seeks to represent, and shall be accompanied by the following:

(a) Fifty-peso 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 and the number of employees in the bargaining unit;

(d) If the applicant union has been in existence for one or more years, copies of its annual financial reports;

(e) Four copies of its constitution and by-laws, minutes of its adoption or ratification, and the list of the members who participated in it;

(f) A sworn statement by the applicant union that there is no certified bargaining agent in the bargaining unit concerned. In case where there is an existing collective bargaining agreement duly submitted to the Department of Labor and Employment, a sworn statement that the application for registration is filed during the last sixty (60) days of the agreement; and

(g) The application for registration and all the accompanying documents shall be verified  under  oath  by   the   secretary  or   the   treasurer,  as   the  case  may be,  and attested to by the president.

SECTION 5. Denial of registration of local unions. — The Regional Office of the Bureau may deny the application for   registration on grounds of  non-compliance with the requirements enumerated in Section 4 hereof.

The   decision   of   the   Regional  Office   or   the   Bureau   denying   the   application   for registration shall be in writing, stating in clear terms the reasons therefor. A copy thereof shall be furnished the applicant union.

SECTION 6. Appeal. — Any applicant union may appeal to the Bureau the denial of registration by the Regional Office, or to the Secretary if the denial is by the Bureau, within ten (10) calendar days from receipt of such decision on grounds of:

(a) Grave abuse of discretion; and

VII. Economic Weapons – Strikes and Lockouts 87

(b) Gross incompetence.

The   appeal   shall   be   filed   in   the   Regional   Office/Bureau  which   shall   cause   the transmittal of the records to the Bureau/Secretary within five (5) calendar days from receipt of the appeal.

The Bureau/Secretary shall decide the appeal within twenty (20) calendar days from receipt of the records of the case.

SECTION 7. Cancellation of registration certificate. — The certificate of registration of any legitimate labor organization including labor federations or national unions may be cancelled  by the  Bureau or   the Regional  Office on any of   the   following grounds:

(a) Violation of Articles 234, 237 and 239 of the Code;

(b) Failure to comply with Article 238 of the Code; and

(c) Violation of any of the provisions of Article 241 of the Code.

SECTION 8. Notice of Cancellation. — The Bureau or the Regional Office shall serve a notice of the cancellation proceedings on the labor organization concerned stating the grounds therefor, at least fifteen (15) calendar days before the scheduled date of hearing. In such hearing, the representative of the labor organization shall have the right to present its side.

SECTION 9. Appeal. — The   labor   organization   may,   unless   the   law   provides otherwise, within fifteen (15) calendar days from receipt of the decision cancelling or revoking its certificate of registration, file an appeal to the Bureau, or in case of cancellation by the Bureau, to the Secretary, on any of the following grounds:

(a) Grave abuse of discretion; and

(b) Gross incompetence.

The  Bureau/Secretary   shall   have  fifteen   (15)   calendar   days   from  receipt   of   the records of the case within which to decide the appeal. The decision shall be final and unappealable.

SECTION 10. Rights of labor organizations. — A legitimate labor organization shall have the rights enumerated in Article 242 of the Code.

SECTION 11. Automatic cancellation of union registration. — (a) The Bureau or the Regional Office shall, after due process, cancel the certificate of registration of any labor organization which fails to submit the financial reports required by the Code 

and its Implementing Rules six (6) months after the effectivity of Republic Act No. 6715.

(b) The reports required under this section shall be submitted to the Bureau or the Regional Office.

COMPLEX ELECTRONICS ASSOC. V. NLRC (99)

5. Improved offer balloting and strikes

Art. 265. Improved offer balloting. In an effort to settle a strike, the Department of Labor and Employment shall conduct a referendum by secret ballot on the improved offer  of   the  employer  on or  before  the 30th  day of   the strike.  When at   least  a majority   of   the   union  members   vote   to   accept   the   improved  offer   the   striking workers shall immediately return to work and the employer shall thereupon readmit them upon the signing of the agreement.

In case of a lockout, the Department of Labor and Employment shall also conduct a referendum by secret balloting on the reduced offer of the union on or before the 30th  day  of   the   lockout.  When at   least  a  majority  of   the  board of  directors  or trustees or the partners holding the controlling interest in the case of a partnership vote to accept the reduced offer, the workers shall immediately return to work and the   employer   shall   thereupon   readmit   them   upon   the   signing   of   the agreement. (Incorporated by Section 28, Republic Act No. 6715, March 21, 1989)

Art. 212 (v).  "Appeal" means the elevation by an aggrieved party of any decision, order or award of a lower body to a higher body, by means of a pleading which includes the assignment of errors, memorandum of arguments in support thereof, and the reliefs prayed for. A mere notice of appeal, therefore, does not constitute the appeal as herein defined and understood, and shall not stop the running of the period for perfecting an appeal.

VIII. Burden of economic loss

PHIL. DIAMOND HOTEL AND RESORT INC. V. MANILA DIAMOND HOTEL EMPLOYEES UNION (04)

VII. Economic Weapons – Strikes and Lockouts 88

CROWNWELL COMMERCIAL EMPLOYEES AND LABORERS UNION V. CIR (64)

CONSOLIDATED LABOR ASSOC. B. MARSMAN AND CO. (64)

SSS V. SSS SUPERVISORS UNION (82)

PHIL. INTERFASHION INC. V. NLRC (82)

LAPANDAY WORKERS UNION V. NLRC (95)

VIII. Picketing 89

VIII. Picketing

A. Definition and Basis

Black’s Law Dictionary

:  by members of a trade union on strike,  consists  in posting members at all   the approaches to the works struck against, for the purpose of observing and re- porting the workmen going to or coming from the works, and of using such influence as may be in their power to prevent the workmen from accepting work there. 

  Art. III Sec. 4. No   law   shall   be   passed   abridging   the   freedom   of   speech,   of expression, or of the press, or the right of the people peaceably to assemble and petition the government for redress of grievances.

B. Nature and purpose of picket line

STA. ROSA COCA-COLA PLANT EMPLOYEES UNION V. COCA-COLA BOTTLERS PHILS. INC. (07)

INSULAR LIFE ASSURANCE CO. LTD. EMPLOYEES V. INSULAR LIFE ASSURANCE CO. LTD. (71)

SECURITY BANK EMPLOYEES UNION V. SECURITY BANK AND TRUST CO. (68)

MONTERA V. CIR (47)

PHIL. ASSOC. OF FREE LABOR UNIONS V. CLORIBEL (69)

C. Picketing and libel laws

Art. 353. Definition of libel. — A libel is public and malicious imputation of a crime, or of a vice or defect, real or imaginary, or any act, omission, condition, status, or circumstance tending to cause the dishonor, discredit, or contempt of a natural or juridical person, or to blacken the memory of one who is dead.

PHIL. COMMERCIAL AND INDUSTRIAL BANK PHILNABANK EMPLOYEES (81)

D. Employer-employee relationship

DE LEON V. NATIONAL LABOR UNION (57)

CRUZ V. CINEMA STAGE (57)

E. Curtailment

FREE TELEPHONE WORKERS UNION V. PHIL. LONG DISTANCE CO. (82)

NAGKAKAISANG MANGGAGAWA SA CUIZON HOTEL V. LIBRON (83)

VIII. Picketing 90

F. Restrictions, innocent third party rule and liabilities

LIWAYWAY PUBLISHING CO. INC. V. PERMANENT CONCRETE WORKERS UNION (81)

MSF TIRE AND RUBBER INC. V. CA (99)

Prohibited activities – peaceful picketing

Art. 264. Prohibited activities.

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.

RPC Art. 289. Formation, maintenance and prohibition of combination of capital or labor through violence or threats. — The penalty of arresto mayor and a fine not exceeding 300 pesos shall  be  imposed upon any person who, for the purpose of organizing, maintaining or preventing coalitions or capital or labor, strike of laborers or lock-out of employees, shall employ violence or threats in such a degree as to compel or force the laborers or employers  in the free and legal exercise of their industry or work, if the act shall not constitute a more serious offense in accordance with the provisions of this Code. 

RPC Art. 312. Occupation of real property or usurpation of real rights in property. — Any   person  who,   by  means   of   violence   against   or   intimidation   of persons, shall take possession of any real property or shall usurp any real rights in property belonging to another, in addition to the penalty incurred for the acts of violence executed by him, shall be punished by a fine from 50 to 100 per centum of the gain which he shall have obtained, but not less than 75 pesos.

If the value of the gain cannot be ascertained, a fine of from 200 to 500 pesos shall be imposed.

IX. Labor Injunction 91

IX. Labor Injunction

I. Definition and Nature

Dictionary definition

PHIL. AIRLINES INC. V. NLRC (98)

II. General rule – prohibition

Art. 254. Injunction prohibited. No   temporary   or   permanent   injunction   or restraining order  in any case  involving or growing out of  labor disputes shall  be issued by any court or other entity, except as otherwise provided in Articles 218 and 264 of this Code. (As amended by Batas Pambansa Bilang 227, June 1, 1982)

CALTEX FILIPINO MANAGERS AND SUPERVISORS ASSOCIATION V. CIR (84)

SAN MIGUEL CORP. V.NLRC (03)

ILAW AT BUKLOD NG MANGGAGAWA (IBM) V. NLRC (98)

PHIL. AIRLINES INC V. NLRC (98)

DELTA VENTURES RESOURCE INC V. CABATO (00)

RAVAGO V. EASTERN MARINE LTD. (05)

IV. Issuing Agency

A. National Labor Relations Commission and role of labor arbiter

Art. 218. Powers of the Commission. The Commission shall  have the power and authority:

(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; 

IX. Labor Injunction 92

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 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)

NESTLE PHILS. INC. V. NLRC (91)

PHILIPPINE AIRLINES INC. V. NLRC (98)

B. Injunction and med-arbiter

DINIO V. LAGUESMA (97)

C. Procedural requirements and rules for the issuance of labor injunctions

Art. 218. Powers of the Commission. The Commission shall  have the power and authority:

(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; 

IX. Labor Injunction 93

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 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)

ILAW AT BUKLOD NG MANGGAGAWA (IBM) V. NLRC (91)

BISIG NG MANGGAGAWA V. NLRC (93)

RAVAGO V. EASTERN MARINE (05)

X. Alternatives to Use of Economic Weapons – Conciliation and Arbitration as Modes of Labor Dispute Settlement 94

X. Alternatices to Use of Economic Weapons: Conciliation and Arbitration as Modes of Labor

Dispute Settlement

A. Conciliation

I. Policy

Art. 211. Declaration of Policy.

A. It is the policy of the State: 

e. To   provide   an   adequate   administrative   machinery   for   the expeditious settlement of labor or industrial disputes;

Art XIII Section 3. 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-organizations,   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 on investments, and to expansion and growth.

II. Conciliation – as part of collective bargaining process

Art. 250. 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 duty  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)

Art. 233. 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.

NISSAN MOTORS PHILS. INC. V. SEC. OF LABOR AND EMPLOYMENT (93)

III. Conciliation agency – National conciliation and mediation board

EO 251.

Sec. 4. Section 22 of Executive Order No. 126 is hereby amended to read as follows:

"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 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, 

X. Alternatives to Use of Economic Weapons – Conciliation and Arbitration as Modes of Labor Dispute Settlement 95

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."

Art. 211. Declaration of Policy.

A. It is the policy of the State: 

c. To   foster   the   free  and   voluntary  organization  of   a   strong  and united labor movement

Conciliator’s Handbook, National Conciliation and Mediation Board, DOLE

pp. 1, 8-13, 16-17

X. Alternatives to Use of Economic Weapons – Conciliation and Arbitration as Modes of Labor Dispute Settlement 96

B. Arbitration

I. In general

CHUNG FU INDUSTRIES V. CA (92)

LM POWER ENGINEERING CORP. V. CAPITOL INDUSTRIAL CONSTRUCTION GROUPS (03)

FRABELLE FISHING CORP. V. PHIL. AMERICAN LIFE INSURANCE CO. (07)

II. Compulsory arbitration

A. Definition and nature of dispute subject to compulsory arbitration

Art. 263. Strikes, picketing and lockouts.

(g) When, in his opinion, there exists a labor dispute causing or likely to cause a strike or lockout in an industry indispensable to the national interest, the Secretary   of   Labor   and   Employment  may   assume   jurisdiction   over   the dispute and decide it or certify the same to the Commission for compulsory arbitration.   Such   assumption   or   certification   shall   have   the   effect   of automatically   enjoining   the   intended  or   impending   strike  or   lockout  as specified in the assumption or certification order. If one has already taken place at the time of assumption or certification, all striking or locked out employees   shall   immediately   return-to-work   and   the   employer   shall immediately resume operations and readmit all workers under the same terms and conditions prevailing before the strike or lockout. The Secretary of Labor and Employment or the Commission may seek the assistance of 

law enforcement agencies to ensure compliance with this provision as well as with such orders as he may issue to enforce the same.In line with the national concern for and the highest respect accorded to the right of patients to life and health, strikes and lockouts in hospitals, clinics and similar medical   institutions shall,  to every extent possible,  be avoided,  and all  serious efforts,  not only by  labor and management but government as well, be exhausted to substantially minimize, if not prevent, their adverse effects on such life and health, through the exercise, however legitimate, by labor of its right to strike and by management to lockout. In labor   disputes   adversely   affecting   the   continued   operation   of   such hospitals, clinics or medical institutions, it shall be the duty of the striking union or locking-out employer to provide and maintain an effective skeletal workforce of medical and other health personnel,  whose movement and services shall be unhampered and unrestricted, as are necessary to insure the proper and adequate protection of the life and health of its patients, most especially emergency cases, for the duration of the strike or lockout. In   such   cases,   therefore,   the   Secretary   of   Labor   and   Employment  may immediately assume, within twenty four (24) hours from knowledge of the occurrence of such a strike or lockout, jurisdiction over the same or certify it to   the   Commission   for   compulsory   arbitration.   For   this   purpose,   the contending   parties   are   strictly   enjoined   to   comply   with   such   orders, prohibitions and/or injunctions as are issued by the Secretary of Labor and Employment   or   the   Commission,   under   pain   of   immediate   disciplinary action, including dismissal or loss of employment status or payment by the locking-out employer of backwages, damages and other affirmative relief, even   criminal   prosecution   against   either   or   both   of   them. The foregoing notwithstanding, the President of the Philippines shall not be precluded   from   determining   the   industries   that,   in   his   opinion,   are indispensable to the national  interest,  and from intervening at any time and assuming jurisdiction over any such labor dispute in order to settle or terminate the same.

PHIL. AIRLINES INC. V. NLRC (89)

GTE DIRECTORIES CORP. V. GTE DIRECTORIES CORP. EMPLOYEES UNION (91)

X. Alternatives to Use of Economic Weapons – Conciliation and Arbitration as Modes of Labor Dispute Settlement 97

YSS EMPLOYEES, INC. V. YSS LABORATORIES (09)

LUZON DEVELOPMENT BANK V. ASSOC. OF DEV’T BANK EMPLOYEES (95)

PHIMCO ONDUSTRIES, INC. V. BRILLANTES (99)

TRANS-ASIA SHIPPING LINES V. CA (04)

MANILA DIAMOND HOTEL EMPLOYERS UNION V. CA (05)

B. Rationale – compulsory arbitration

YSS EMPLOYEES, INC. V. YSS LABORATORIES (09)

MANILA CORDAGE CO. V. CIR (71)

TRANS-ASIA SHIPPING LINES V. CA (04)

NATIONAL FEDERATION OF LABOR V. MOLE (83)

PHIL. SCHOOL OF BUSNIESS ADMINISTRATION V. NORIEL (83)

UNIVERSITY OF IMMACULATE CONCEPCION, INC. V. SEC. OF LABOR (05)

C. Process initiation – Certification of dispute

1. Initiating party

PLDT V. MANGGAGAWA (05)

a. Secretary DOLE

Art. 263. Strikes, picketing and lockouts.

(g) When, in his opinion, there exists a labor dispute causing or likely to cause a strike or lockout in an industry indispensable to the national interest, the Secretary   of   Labor   and   Employment  may   assume   jurisdiction   over   the dispute and decide it or certify the same to the Commission for compulsory arbitration.   Such   assumption   or   certification   shall   have   the   effect   of automatically   enjoining   the   intended  or   impending   strike  or   lockout  as specified in the assumption or certification order. If one has already taken place at the time of assumption or certification, all striking or locked out 

X. Alternatives to Use of Economic Weapons – Conciliation and Arbitration as Modes of Labor Dispute Settlement 98

employees   shall   immediately   return-to-work   and   the   employer   shall immediately resume operations and readmit all workers under the same terms and conditions prevailing before the strike or lockout. The Secretary of Labor and Employment or the Commission may seek the assistance of law enforcement agencies to ensure compliance with this provision as well as with such orders as he may issue to enforce the same.In line with the national concern for and the highest respect accorded to the right of patients to life and health, strikes and lockouts in hospitals, clinics and similar medical   institutions shall,  to every extent possible,  be avoided,  and all  serious efforts,  not only by  labor and management but government as well, be exhausted to substantially minimize, if not prevent, their adverse effects on such life and health, through the exercise, however legitimate, by labor of its right to strike and by management to lockout. In labor   disputes   adversely   affecting   the   continued   operation   of   such hospitals, clinics or medical institutions, it shall be the duty of the striking union or locking-out employer to provide and maintain an effective skeletal workforce of medical and other health personnel,  whose movement and services shall be unhampered and unrestricted, as are necessary to insure the proper and adequate protection of the life and health of its patients, most especially emergency cases, for the duration of the strike or lockout. In   such   cases,   therefore,   the   Secretary   of   Labor   and   Employment  may immediately assume, within twenty four (24) hours from knowledge of the occurrence of such a strike or lockout, jurisdiction over the same or certify it to   the   Commission   for   compulsory   arbitration.   For   this   purpose,   the contending   parties   are   strictly   enjoined   to   comply   with   such   orders, prohibitions and/or injunctions as are issued by the Secretary of Labor and Employment   or   the   Commission,   under   pain   of   immediate   disciplinary action, including dismissal or loss of employment status or payment by the locking-out employer of backwages, damages and other affirmative relief, even   criminal   prosecution   against   either   or   both   of   them. The foregoing notwithstanding, the President of the Philippines shall not be precluded   from   determining   the   industries   that,   in   his   opinion,   are indispensable to the national  interest,  and from intervening at any time and assuming jurisdiction over any such labor dispute in order to settle or terminate the same.

PLDT V. MANGGAGAWA (05)

b. President

Art. 263. Strikes, picketing and lockouts.

(g) When, in his opinion, there exists a labor dispute causing or likely to cause a strike or lockout in an industry indispensable to the national interest, the Secretary   of   Labor   and   Employment  may   assume   jurisdiction   over   the dispute and decide it or certify the same to the Commission for compulsory arbitration.   Such   assumption   or   certification   shall   have   the   effect   of automatically   enjoining   the   intended  or   impending   strike  or   lockout  as specified in the assumption or certification order. If one has already taken place at the time of assumption or certification, all striking or locked out employees   shall   immediately   return-to-work   and   the   employer   shall immediately resume operations and readmit all workers under the same terms and conditions prevailing before the strike or lockout. The Secretary of Labor and Employment or the Commission may seek the assistance of law enforcement agencies to ensure compliance with this provision as well as with such orders as he may issue to enforce the same.In line with the national concern for and the highest respect accorded to the right of patients to life and health, strikes and lockouts in hospitals, clinics and similar medical   institutions shall,  to every extent possible,  be avoided,  and all  serious efforts,  not only by  labor and management but government as well, be exhausted to substantially minimize, if not prevent, their adverse effects on such life and health, through the exercise, however legitimate, by labor of its right to strike and by management to lockout. In labor   disputes   adversely   affecting   the   continued   operation   of   such hospitals, clinics or medical institutions, it shall be the duty of the striking union or locking-out employer to provide and maintain an effective skeletal workforce of medical and other health personnel,  whose movement and services shall be unhampered and unrestricted, as are necessary to insure the proper and adequate protection of the life and health of its patients, most especially emergency cases, for the duration of the strike or lockout. In   such   cases,   therefore,   the   Secretary   of   Labor   and   Employment  may immediately assume, within twenty four (24) hours from knowledge of the occurrence of such a strike or lockout, jurisdiction over the same or certify it to   the   Commission   for   compulsory   arbitration.   For   this   purpose,   the contending   parties   are   strictly   enjoined   to   comply   with   such   orders, prohibitions and/or injunctions as are issued by the Secretary of Labor and Employment   or   the   Commission,   under   pain   of   immediate   disciplinary action, including dismissal or loss of employment status or payment by the locking-out employer of backwages, damages and other affirmative relief, even   criminal   prosecution   against   either   or   both   of   them. 

X. Alternatives to Use of Economic Weapons – Conciliation and Arbitration as Modes of Labor Dispute Settlement 99

The foregoing notwithstanding, the President of the Philippines shall not be precluded   from   determining   the   industries   that,   in   his   opinion,   are indispensable to the national  interest,  and from intervening at any time and assuming jurisdiction over any such labor dispute in order to settle or terminate the same.

FEATI UNIVERSITY V. FEATI UNIVERSITY FACULTY CLUB (66)

MANILA CORDAGE CO. V. CIR (71)

CAPITOL MEDICAL CENTER V. TRAJANO (05)

PHILCOM EMPLOYESS UNION V. PHIL. GLOBAL COMMUNICATIONS (06)

UNION OF FILIPRO EMPLOYEES V. NESTLE PHILS. (90)

INTERNATIONAL PHARMACEUTICAL INC. V. SEC. OF DOLE (92)

PHILTREAD WORKERS UNION V. CONFESSOR (97)

D. Arbitration agencies

Art. 263. Strikes, picketing and lockouts.

(g) When, in his opinion, there exists a labor dispute causing or likely to cause a strike or lockout in an industry indispensable to the national interest, the Secretary   of   Labor   and   Employment  may   assume   jurisdiction   over   the dispute and decide it or certify the same to the Commission for compulsory arbitration.   Such   assumption   or   certification   shall   have   the   effect   of automatically   enjoining   the   intended  or   impending   strike  or   lockout  as specified in the assumption or certification order. If one has already taken place at the time of assumption or certification, all striking or locked out employees   shall   immediately   return-to-work   and   the   employer   shall immediately resume operations and readmit all workers under the same terms and conditions prevailing before the strike or lockout. The Secretary of Labor and Employment or the Commission may seek the assistance of law enforcement agencies to ensure compliance with this provision as well as with such orders as he may issue to enforce the same.In line with the national concern for and the highest respect accorded to the right of patients to life and health, strikes and lockouts in hospitals, clinics and similar medical   institutions shall,  to every extent possible,  be avoided,  and all  serious efforts,  not only by  labor and management but government as well, be exhausted to substantially minimize, if not prevent, their adverse effects on such life and health, through the exercise, however legitimate, by labor of its right to strike and by management to lockout. In labor   disputes   adversely   affecting   the   continued   operation   of   such hospitals, clinics or medical institutions, it shall be the duty of the striking union or locking-out employer to provide and maintain an effective skeletal workforce of medical and other health personnel,  whose movement and services shall be unhampered and unrestricted, as are necessary to insure the proper and adequate protection of the life and health of its patients, most especially emergency cases, for the duration of the strike or lockout. In   such   cases,   therefore,   the   Secretary   of   Labor   and   Employment  may immediately assume, within twenty four (24) hours from knowledge of the occurrence of such a strike or lockout, jurisdiction over the same or certify it to   the   Commission   for   compulsory   arbitration.   For   this   purpose,   the contending   parties   are   strictly   enjoined   to   comply   with   such   orders, prohibitions and/or injunctions as are issued by the Secretary of Labor and Employment   or   the   Commission,   under   pain   of   immediate   disciplinary action, including dismissal or loss of employment status or payment by the locking-out employer of backwages, damages and other affirmative relief, 

X. Alternatives to Use of Economic Weapons – Conciliation and Arbitration as Modes of Labor Dispute Settlement 100

even   criminal   prosecution   against   either   or   both   of   them. The foregoing notwithstanding, the President of the Philippines shall not be precluded   from   determining   the   industries   that,   in   his   opinion,   are indispensable to the national  interest,  and from intervening at any time and assuming jurisdiction over any such labor dispute in order to settle or terminate the same.

UNION OF FILIPRO EMPLOYEES V. NESTLE PHILS. (90)

ST. SCHOLASTICA’S COLLEGE V. TORRES (92)

E. Effect of certification and violation of order

Art. 263. Strikes, picketing and lockouts.

(g) When, in his opinion, there exists a labor dispute causing or likely to cause a strike or lockout in an industry indispensable to the national interest, the Secretary   of   Labor   and   Employment  may   assume   jurisdiction   over   the dispute and decide it or certify the same to the Commission for compulsory arbitration.   Such   assumption   or   certification   shall   have   the   effect   of automatically   enjoining   the   intended  or   impending   strike  or   lockout  as specified in the assumption or certification order. If one has already taken place at the time of assumption or certification, all striking or locked out employees   shall   immediately   return-to-work   and   the   employer   shall immediately resume operations and readmit all workers under the same terms and conditions prevailing before the strike or lockout. The Secretary of Labor and Employment or the Commission may seek the assistance of law enforcement agencies to ensure compliance with this provision as well as with such orders as he may issue to enforce the same.In line with the national concern for and the highest respect accorded to the right of patients to life and health, strikes and lockouts in hospitals, clinics and similar medical   institutions shall,  to every extent possible,  be avoided,  and all  serious efforts,  not only by  labor and management but government as well, be exhausted to substantially minimize, if not prevent, their adverse effects on such life and health, through the exercise, however 

legitimate, by labor of its right to strike and by management to lockout. In labor   disputes   adversely   affecting   the   continued   operation   of   such hospitals, clinics or medical institutions, it shall be the duty of the striking union or locking-out employer to provide and maintain an effective skeletal workforce of medical and other health personnel,  whose movement and services shall be unhampered and unrestricted, as are necessary to insure the proper and adequate protection of the life and health of its patients, most especially emergency cases, for the duration of the strike or lockout. In   such   cases,   therefore,   the   Secretary   of   Labor   and   Employment  may immediately assume, within twenty four (24) hours from knowledge of the occurrence of such a strike or lockout, jurisdiction over the same or certify it to   the   Commission   for   compulsory   arbitration.   For   this   purpose,   the contending   parties   are   strictly   enjoined   to   comply   with   such   orders, prohibitions and/or injunctions as are issued by the Secretary of Labor and Employment   or   the   Commission,   under   pain   of   immediate   disciplinary action, including dismissal or loss of employment status or payment by the locking-out employer of backwages, damages and other affirmative relief, even   criminal   prosecution   against   either   or   both   of   them. The foregoing notwithstanding, the President of the Philippines shall not be precluded   from   determining   the   industries   that,   in   his   opinion,   are indispensable to the national  interest,  and from intervening at any time and assuming jurisdiction over any such labor dispute in order to settle or terminate the same.

YSS EMPLOYEES, INC. V. YSS LABORATORIES (09)

PHILCOM EMPLOYESS UNION V. PHIL. GLOBAL COMMUNICATIONS (06)

MANILA HOTEL EES ASSOC. V. MANILA HOTEL CORP. (07)

GRAND BOULEVARD HOTEL V. GRAND LABOR ORGANIZATION (03)

X. Alternatives to Use of Economic Weapons – Conciliation and Arbitration as Modes of Labor Dispute Settlement 101

TOYOTA MOTORS PHILS. CORP. ASSOC. V. NLRC (07)

SARMIENTO V. TUICO AND ASIAN TRANSMISSION CORP. (ATC) V. NLRC (88)

TELEFUNKEN SEMI-CONDUCTOR EMPLOYEES UNION V. CA (00)

TRANS-ASIA SHIPPING LINES, INC. UNLICENSED CREWS EMPLOYEES UNION V. CA (04)

UNIVERSITY OF SAN AGUSTIN V. CA (06)

UNION OF FILIPRO EMPLOYEES V. NESTLE PHILS. (90)

F. Awards and orders

Art. 263. Strikes, picketing and lockouts.

(i)   The   Secretary   of   Labor   and   Employment,   the   Commission   or   the   voluntary arbitrator shall decide or resolve the dispute, as the case may be. The decision of the President, the Secretary of Labor and Employment, the Commission or the voluntary arbitrator shall be final and executory ten (10) calendar days after receipt thereof by the parties. (As amended by Section 27, Republic Act No. 6715, March 21, 1989)

PHILCOM EMPLOYESS UNION V. PHIL. GLOBAL COMMUNICATIONS (06)

NISSAN MOTORS V. SEC. DOLE (06)

MANILA ELECTRIC V. QUISUMBING (00)

LMG CHEMICALS CORP. V. SEC. DOLE (01)

PHIL. AIRLINES V. AIRLINE PILOTS (02)

TELEFUNKEN SEMI-CONDUCTOR EMPLOYEES UNION V. CA (00)

INTERPHIL LABORATORIES UNION V. INTERPHIL LABORATORIES (01)

X. Alternatives to Use of Economic Weapons – Conciliation and Arbitration as Modes of Labor Dispute Settlement 102

G. Option – submit case to voluntary arbitration after certification

Art. 263. Strikes, picketing and lockouts.

(h) Before or at any stage of the compulsory arbitration process, the parties may opt to submit their dispute to voluntary arbitration.

H. Compulsory arbitration and labor rights

PHILTREAD WORKERS UNION V. CONFESSOR (97)

III. Voluntary arbitration

A. Defined

LUZON DEV’T BANK V. ASSOC. OF DEV’T BANK EMPLOYEES (95)

MANILA CENTRAL LINE CORP. V. MANILA CENTRAL LINE FREE WORKERS UNION (98)

B. Basis for voluntary arbitration and rationale

Art XIII Section 3. 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-organizations,   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 on investments, and to expansion and growth,

Art. 211. Declaration of Policy.

A. It is the policy of the State: 

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. 260. 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.

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.

ETERNIT EMPLOYEES AND WORKERS UNION V. DE VEYRA (90)

X. Alternatives to Use of Economic Weapons – Conciliation and Arbitration as Modes of Labor Dispute Settlement 103

C. Process encouragement/promotion

Establishing machinery dispute settlement – collective bargaining agreement and time frame

Art. 260. 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.

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.

EO 251.

Sec. 4. Section 22 of Executive Order No. 126 is hereby amended to read as follows:

"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 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 

X. Alternatives to Use of Economic Weapons – Conciliation and Arbitration as Modes of Labor Dispute Settlement 104

President to serve for a term of three (3) years. The Chairman and Members thereof shall serve without compensation."

D. Arbitrable issues

Art. 261. 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 agreement.

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. 262. 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.

Art. 217. 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: 

5. Cases   arising   from   any   violation   of   Article   264   of   this   Code, including questions involving the legality of strikes and lockouts; and

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)

SAN MIGUEL FOODS INC. V. SAN MIGUEL EMPLOYEES UNION (07)

E. Arbitrator

1. Selection

Art. 212. Definitions.

(n) "Voluntary Arbitrator" means any person accredited by the Board as such or any person named or designated in the Collective Bargaining Agreement by the parties to act as their Voluntary Arbitrator, or one chosen with or without the assistance of the National Conciliation and Mediation Board, pursuant to a selection procedure agreed upon in the Collective Bargaining Agreement, or any official that may be authorized by the Secretary of Labor and Employment to act as Voluntary Arbitrator upon the written request and agreement of the parties to a labor dispute.

Art. 260. 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.

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.

X. Alternatives to Use of Economic Weapons – Conciliation and Arbitration as Modes of Labor Dispute Settlement 105

IR (n) "Labor or Industrial Dispute" includes any controversy or matter concerning terms or conditions of employment or the association or representation of persons in   negotiating   the   fixing,   maintaining,   changing   or   arranging   of   terms   and conditions of employment regardless of whether or not the disputants stand in the proximate relationship of employers and employees.

MANILA CENTRAL LINE FREE WORKERS UNION V. MANILA CENTRAL CORP. (98)

2. Jurisdiction

Art. 261. 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 agreement.

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. 262. 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.

LANTEX INDUSTRIES V. CA (07)

ARELLANO UNIVERSITY EMPLOYEES UNION V. CA (06)

DEL MONTE PHILS. INC. V. SALDIVAR (06)

SANYO PHILS. WORKERS UNION V. CANIZARES (92)

VIVERO V. CA (00)

SAN JOSE V. NLRC (98)

LUDO AND LUYM CORP. V. SAOMIDO (03)

APALISOK V. RADIO PHILS.. NETWORK RADIO STATION – DYKC (03)

X. Alternatives to Use of Economic Weapons – Conciliation and Arbitration as Modes of Labor Dispute Settlement 106

3. Procedure

Art. 262-A. Procedures. The Voluntary Arbitrator or panel of Voluntary Arbitrators shall have the power to hold hearings, receive evidences and take whatever action is necessary to resolve the issue or issues subject of the dispute, including efforts to effect a voluntary settlement between parties.

All parties to the dispute shall be entitled to attend the arbitration proceedings. The attendance of any third party or the exclusion of any witness from the proceedings shall be determined by the Voluntary Arbitrator or panel of Voluntary Arbitrators. Hearing may be adjourned for cause or upon agreement by the parties.

Unless   the   parties   agree   otherwise,   it   shall   be   mandatory   for   the   Voluntary Arbitrator or panel of Voluntary Arbitrators to render an award or decision within twenty (20) calendar days from the date of submission of the dispute to voluntary arbitration.

The award or decision of the Voluntary Arbitrator or panel of Voluntary Arbitrators shall   contain   the   facts   and   the   law  on  which   it   is   based.   It   shall   be  final   and executory after ten (10) calendar days from receipt of the copy of the award or decision by the parties.

Upon motion of any interested party, the Voluntary Arbitrator or panel of Voluntary Arbitrators or the Labor Arbiter in the region where the movant resides, in case of the   absence   or   incapacity   of   the   Voluntary   Arbitrator   or   panel   of   Voluntary Arbitrators, for any reason, may issue a writ of execution requiring either the sheriff of the Commission or regular courts or any public official whom the parties may designate in the submission agreement to execute the final decision, order or award.

4. Nature of office and function

Art. 260. 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.

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. 212. Definitions. (n) "Voluntary Arbitrator" means any person accredited by the Board  as   such  or  any  person  named or  designated   in   the  Collective  Bargaining Agreement by the parties to act as their Voluntary Arbitrator, or one chosen with or without the assistance of the National Conciliation and Mediation Board, pursuant to a selection procedure agreed upon in the Collective Bargaining Agreement, or any official that may be authorized by the Secretary of Labor and Employment to act as Voluntary Arbitrator upon the written request and agreement of the parties to a labor dispute.

LEYTE IV ELECTRIC COOPERATIVE, INC. V. LEYCO IV EMPLOYEES ASSOC. (07)

CONTINENTAL MARBLE CORP. V. NLRC (88)

LUZON DEVELOPMENT BANK V. ASSOC. OF LUZON DEV’T BANK EMPLOYEES (95)

NIPPON PAINT EMPLOYEES UNION V. CA (04)

UNITED KIMBERLY CLARK EMPLOYEES UNION V. KIMBERLY-CLARK PHILS. (06)

X. Alternatives to Use of Economic Weapons – Conciliation and Arbitration as Modes of Labor Dispute Settlement 107

5. Interpretation of agreement

LEPANTO CONSOLIDATED MINING CORP. V. LEPANTO LOCAL STAFF UNION (08)

6. Awards and orders

Art. 262-A. Procedures. The Voluntary Arbitrator or panel of Voluntary Arbitrators shall have the power to hold hearings, receive evidences and take whatever action is necessary to resolve the issue or issues subject of the dispute, including efforts to effect a voluntary settlement between parties.

All parties to the dispute shall be entitled to attend the arbitration proceedings. The attendance of any third party or the exclusion of any witness from the proceedings shall be determined by the Voluntary Arbitrator or panel of Voluntary Arbitrators. Hearing may be adjourned for cause or upon agreement by the parties.

Unless   the   parties   agree   otherwise,   it   shall   be   mandatory   for   the   Voluntary Arbitrator or panel of Voluntary Arbitrators to render an award or decision within twenty (20) calendar days from the date of submission of the dispute to voluntary arbitration.

The award or decision of the Voluntary Arbitrator or panel of Voluntary Arbitrators shall   contain   the   facts   and   the   law  on  which   it   is   based.   It   shall   be  final   and executory after ten (10) calendar days from receipt of the copy of the award or decision by the parties.

Upon motion of any interested party, the Voluntary Arbitrator or panel of Voluntary Arbitrators or the Labor Arbiter in the region where the movant resides, in case of the   absence   or   incapacity   of   the   Voluntary   Arbitrator   or   panel   of   Voluntary Arbitrators, for any reason, may issue a writ of execution requiring either the sheriff of the Commission or regular courts or any public official whom the parties may designate in the submission agreement to execute the final decision, order or award.

ETERNIT EMPLOYEES AND WORKERS UNION V. DE VEYRA (90)

DAVAO INTEGRATED V. ABARQUEZ (93)

CITY BANK EMPLOYEES UNION V. MOLE (80)

VOLKSCHEL LABOR UNION V. NLRC (81)

LUDO AND LUYM CORP. V. SAOMIDO (03)

UNITED KIMBERLY-CLARK EMPLOYEES UNION V. KIMBERLY-CLARK PHILS. INC. (06)

EQUITABLE PCI BANKING CORP. V. RCBC CAPITAL CORP. (04)

7. Finality and execution of awards

Art. 262. 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.

MORA V. AVESCO MARKETING CORP. (08)

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INDOPHIL TEXTILE MILLS V. CALICA (92)

PLDT V. MONTEMAYOR (90)

IMPERIAL TEXTILE MILLS, INC. V. SAMPONG (93)

COCA-COLA V. COCA-COLA (05)

AMA COMPUTER COLLEGE, ETC. V. NACINO (08)

8. Appeal

RULE 43

APPEALS FROM THE COURT OF TAX APPEALS AND QUASI-JUDICIAL AGENCIES TO THE COURT OF APPEALS

Section 1. Scope. This Rule shall apply to appeals from judgments or final orders of the Court of Tax Appeals and from awards, judgments, final orders or resolutions of or   authorized   by   any   quasi-judicial   agency   in   the   exercise   of   its   quasi-judicial functions. Among these agencies are the Civil Service Commission, Central Board of Assessment Appeals, Securities and Exchange Commission, Office of the President, Land Registration Authority,  Social  Security  Commission,  Civil  Aeronautics  Board, Bureau of  Patents,  Trademarks  and Technology Transfer,  National  Electrification 

Administration,   Energy   Regulatory   Board,   National   Telecommunications Commission,   Department   of   Agrarian   Reform   under   Republic   Act   No.   6657, Government   Service   Insurance   System,   Employees   Compensation   Commission, Agricultural   Inventions   Board,   Insurance   Commission,   Philippine   Atomic   Energy Commission, Board of Investments, Construction Industry Arbitration Commission, and voluntary arbitrators authorized by law.

Sec. 2. Cases not covered. This Rule shall  not apply to judgments or final orders issued under the Labor Code of the Philippines.

Sec. 3. Where to appeal. An appeal under this Rule may be taken to the Court of Appeals within the period and in the manner herein provided, whether the appeal involves questions of fact, of law, or mixed questions of fact and law.

Sec. 4. Period of appeal. The appeal shall be taken within fifteen (15) days from notice of the award, judgment, final order or resolution, or from the date of its last publication, if publication is required by law for its effectivity, or of the denial of petitioner’s motion for new trial or reconsideration duly filed in accordance with the governing law of the court or agency a quo. Only one (1) motion for reconsideration shall be allowed. Upon proper motion and the payment of the full amount of the docket fee before the expiration of the reglementary period, the Court of Appeals may grant an additional period of fifteen (15) days only within which to file the petition   for   review.  No   further   extension   shall   be   granted   except   for   the  most compelling reason and in no case to exceed fifteen (15) days.

Sec. 5. How appeal taken. Appeal  shall  be taken by filing a verified petition for review in seven (7) legible copies with the Court of Appeals, with proof of service of a copy thereof on the adverse party and on the court or agency a quo. The original copy of the petition intended for the Court of Appeals shall be indicated as such by the petitioner.

Upon the filing of the petition, the petitioner shall pay to the clerk of court of the Court   of   Appeals   the   docketing   and   other   lawful   fees   and   deposit   the   sum  of P500.00 for costs. Exemption from payment of docketing and other lawful fees and the deposit for costs may be granted by the Court of Appeals upon a verified motion setting forth valid grounds therefor. If the Court of Appeals denies the motion, the petitioner shall pay the docketing and other lawful fees and deposit for costs within fifteen (15) days from notice of the denial.

Sec. 6. Contents of the petition. The petition for review shall (a) state the full names of   the  parties   to   the   case,  without   impleading   the   court   or   agencies   either   as petitioners or respondents; (b) contain a concise statement of the facts and issues involved and the grounds relied upon for the review; (c) be accompanied by a clearly 

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legible duplicate original or a certified true copy of the award, judgment, final order or resolution appealed from, together with certified true copies of such material portions  of   the   record   referred   to   therein  and other   supporting papers;  and  (d) contain   a   sworn   certification   against   forum   shopping   as   provided   in   the   last paragraph of section 2, Rule 42. The petition shall state the specific material dates showing that it was filed within the period fixed herein.

Sec. 7. Effect of failure to comply with requirements. The failure of the petitioner to comply with any of the foregoing requirements regarding the payment of the docket and other lawful fees, the deposit for costs, proof of service of the petition, and the contents   of   and   the   documents  which   should   accompany   the   petition   shall   be sufficient ground for the dismissal thereof.

Sec. 8. Action on the petition. The Court of Appeals may require the respondent to file a comment on the petition, not a motion to dismiss, within ten (10) days from notice,  or  dismiss   the petition  if   it  finds the same to be patently  without  merit, prosecuted  manifestly   for   delay,   or   that   the   questions   raised   therein   are   too unsubstantial to require consideration.

Sec. 9. Contents of comment. The comment shall be filed within ten (10) days from notice in seven (7) legible copies and accompanied by clearly legible certified true copies of such material portions of the record referred to therein together with other supporting papers. The comment shall (a) point out insufficiencies or inaccuracies in petitioner’s statement of facts and issues; and (b) state the reasons why the petition should be denied or dismissed. A copy thereof shall be served on the petitioner, and proof of such service shall be filed with the Court of Appeals.

Sec. 10. Due course. If upon the filing of the comment or such other pleadings or documents  as  may be required or  allowed by the Court  of  Appeals  or  upon the expiration of the period for the filing thereof, and on the basis of the petition or the records the Court of Appeals finds prima facie that the court or agency concerned has committed errors of fact or law that would warrant reversal or modification of the award, judgment, final order or resolution sought to be reviewed, it may give due course to the petition; otherwise, it shall dismiss the same. The findings of fact of the court or agency concerned, when supported by substantial evidence, shall be binding on the Court of Appeals.

Sec. 11. Transmittal of record. Within fifteen (15) days from notice that the petition has been given due course, the Court of Appeals may require the court or agency concerned to transmit the original or a legible certified true copy of the entire record of the proceeding under review. The record to be transmitted may be abridged by agreement of all parties to the proceeding. The Court of Appeals may require or permit subsequent correction of or addition to the record.

Sec. 12. Effect of appeal. The appeal shall not stay the award, judgment, final order or   resolution   sought   to   be   reviewed   unless   the   Court   of   Appeals   shall   direct otherwise upon such terms as it may deem just.

Sec. 13. Submission for decision. If the petition is given due course, the Court of Appeals  may   set   the   case   for   oral   argument   or   require   the   parties   to   submit memoranda within  a  period  of  fifteen   (15)  days   from notice.  The  case   shall  be deemed submitted for decision upon the filing of the last pleading or memorandum required by these Rules or by the Court of Appeals.

SAMAHAN V. BACUNGAN (09)

LUZON DEV’T BANK V. ASSOC. OF LUZON DEVELOPMENT BANK EMPLOYEES (95)

UNICRAFT INDUSTRIES INTERNATIONAL CORP. V. CA (01)

9. Costs

Art. 262-B. Cost of voluntary arbitration and Voluntary Arbitrator’s fee. The parties to a Collective Bargaining Agreement shall provide therein a proportionate sharing   scheme   on   the   cost   of   voluntary   arbitration   including   the   Voluntary Arbitrator’s   fee.   The  fixing  of   fee   of  Voluntary  Arbitrators,  whether   shouldered wholly by the parties or subsidized by the Special Voluntary Arbitration Fund, shall take into account the following factors:

a. Nature of the case; 

b. Time consumed in hearing the case; 

c. Professional standing of the Voluntary Arbitrator; 

d. Capacity to pay of the parties; and 

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e. Fees provided for in the Revised Rules of Court.

Labor Relations in the Public Sector 111

I. Right to organize

1. Basis

1. Constitution