labrel azucena summary part 1

LalayAbala.ALS2014B.LaborII. 1

BookFive:LaborRelations,TitleI:PolicyandDefinition

ChapterI:Policy

Article211.

1. Overviewandviewpoint• LaborStandards–minimumtermsandconditionsofemploymentto

whichemployeesarelegallyentitledandwithwhichemployersmustcomply

• Labor Relations – interactions between employer and employees oftheirrepresentativesandthemechanismbywhichthestandardsandother terms and conditions of employment are negotiated, adjustedandenforced

o Distinction between standard and relation is academic;theyintertwineandarenotmutuallyexclusive

• Government relations policy is declared in Article 211 which is afocused elaboration of the basic labor policy announced in Article 3which,inturn,echoestheconstitutionalmandates

• [In theprivate sector,] the cruxof labor relations is theprocessandsubstance of employee participation how rights and duties areexercised, how agreements are reached, and how relationship isenhanced

o The process starts when workers organize themselvesintoaunionorassociation.

Theymayormaynotregistertheirorganization. Registration = certain rights that are legally

demandable,suchastherighttobargainasagroup• Labor organization must be democratically governed and free from

employer’sinterference• If the employer tries to interfere with the workers’ organizational

rights,hecommits “unfair laborpractice” (ULP)whichmaytriggerastrikeorworkstoppage.

o But a union cannot strike over intra or inter‐uniondisputes

• Mainobjectiveoftheunionistorepresenttotheemployertheneedsorinterestoftheemployees,theemployeesshouldspeakasonevoice,andhencetheyneedoneunionastheirrepresentative

o If there is union rivalry, rivalry is resolved through anelectionwithorwithoutDOLEintervention

• Once there is a representative, the employer’s and employees’representativesmeetandtalkoverproposalsandcounter‐proposals

• Theagreement,whenreached,isembodiedinalaborcontractcalledthecollectivebargainingagreement(CBA)

o CBA must be ratified by the employees and registeredwiththeDOLE

o Ifunregistered,itisvalidandbindingbetweenthepartieso Itseconomicprovisionsarerenegotiatednot later than3

years, while the union representation stays undisturbedfor5years

• Work stoppage, known as strike by employees or lockout by theemployer,isNOTfavoredbylaw

o BUTitisrecognizedasalegalrightbutregulatedastothepurposeandmannerofdoingit

o Itisameasureoflastresort• Labor‐management relations in the private sector are inter‐party.

Thismeans that the employer and employees themselvesmust dealwiththeirproblemsinamannermostcomfortabletothem

o “Theprinciplebehind laborunionism inprivate industry isthatindustrialpeacecannotbesecuredthroughcompulsionbylaw.Relationsbetweenprivateemployersandemployeesrest on an essentially voluntary basis, subject tominimumrequirements.”SSSEmployeesAssoc.v.CA

• Grievance machinery or an in‐house problem‐solving structure isrequirementinCBAs.

o If this fails,partiesare free to select any thirdpartyoravoluntaryarbitratortoresolvetheirdifferences

• Governmentstepsinonlywhenpartiesfailtoreachanagreementorwhenonedisregardsthedefinedrightsoftheother

o Or dispute,whether it be a lockout, a strike, a picket, orany form of “concerted activities,” violates the rights ofothersorisaccompaniedbyviolenceorotherillegalacts

o InjunctivepoweroftheStatemaybeinvoked• Laws,asa force thatbalances theparties’ rightsandobligations,are

necessaryo CivilCodeinArticle1700:therelationsbetweencapitaland

laborarenotmerelycontractualandtheyaresoimpressedwith public interest that labor contractsmust yield to thecommongood

• Industrialorlaborrelationsarehumanrelations2. Workers’Organization

• Laborortradeunionisacombinationofworkmenorganizedfortheultimatepurposeofsecuringthroughunitedactionthemostfavorableconditions as regards wages, hours of labor, conditions ofemployment,etc.,foritsmembers

• Inapopular sense, it is a completelyorganizedbodyofdues‐payingmembers, operating through elected officers and constituting amilitant,vitalandfunctioningorgan.

• Itmaybesaidthatwhileeverylaborunionisalabororganization,noteverylabororganizationisalaborunion.

3. Whyworkersorganize• Workers organize because of the human drive toward self‐

advancement• Oneofthebasicpurposesofalaborunionistoeliminatecompetition

amongemployeesinthelabormarket.Itseekstoexercisethepowerof a monopolist. The large corporation diminished the bargainingpoweroftheindividualworkertosuchanextentthattalkoffreedomofindividualcontractbecameanemptyslogan

• Threeotherhumandesiresthatledworkerstoorganize:o Desireforjobsecurity


o Employeeswished to substitute “the rule of law” for thearbitrary and often capricious exercise of power by theboss

o Unionshelped togiveemployeesa senseofparticipationin the business enterprises of which they are part – afunction of labor unions which became important asorganizationsspreadintomassproductionindustries

• Unlawful forworkmentocombineandtocontrolthebusinessoftheemployerinmattersnotaffectingthetermsoftheirownhiring

4. ILOConventionNo.87• Article 2 –Workers and employers without distinction shall have the

right to establish and, subject only to the rules of the organizationconcerned,tojoinorganizationsoftheirownchoosingwithoutpreviousauthorization

• Article 3 – (1) Workers’ and employers’ organizations shall have theright to draw up their constitutions and rules, to elect theirrepresentatives in full freedom, to organize their administration andactivitiesandtoformulatetheirprogrammes.(2)Thepublicauthoritiesshall refrain from an interference which would restrict this right orimpedethelawfulexercisethereof.

• Article8–(1)Inexercisingtherightsprovided,workersandemployersand their respective organizations, like other persons or organizedcollectivities, shall respect the lawof the land. (2)The lawof the landshallnobesuchastoimpair,norshallitbesoappliedastoimpair,theguaranteesprovidedfor.

5. Workers’participationinpolicymaking• Participatoryorconsultativemanagementisnolongerjustatheoryor

varietyofmanagementstyle.Itisamatteroflawbecausetherightofemployees to participate in policy‐ or decision‐making on mattersaffecting their rights,duties,benefitsorwelfare isguaranteed in theConstitution and reinforced in the Labor Code and Supreme Courtrulings.

ChapterII:Definitions

Article212.

1. Employeremployeerelationshipessential• No employer‐employee relationship, no basis for organizing for

purposesofcollectivebargaining• Elements:

o Selectionandengagementoftheemployeeo Paymentofwageso Powertodismisso Powertocontroltheemployee’sconduct

• BrotherhoodLaborUnityMovementofthePhilippinesv.Zamorao PetitionerswereworkersattheSanMiguelplant,working

ascargadoresorpahinantes,sevenyearsofservice.They

report for work to the superintendent in charge whoissued themgate passes. Theywere paid on a piece‐ratebasis. They organized themselves into a union and airedgrievances. SMC refused to bargain with them, claimingthattheywerenotitsemployees

o Consideringthelengthoftimethepetitionershaveworked,it may be concluded that they were engaged to performactivities necessary or desirable in the usual business ortrade of SMC and that petitioners are therefore regularemployees.Continuityandhabitualityoftheirworkbolstertheirclaimofemployeestatus.Nolaborcontractingaswell,becausethereisalaboronlycontractingschemeonly.

2. Whoareemployees• Thetermemployee:

o Shallincludeanyemployeeo Andshallnotbelimitedtotheemployeeofanyparticular

employer,unlesstheActexplicitlystatesotherwiseo Andshallincludeanyindividual

Whoseworkhasceasedasaconsequenceof,or inconnectionwith,anycurrentlabordispute

And who has not obtained any substantiallyequivalentandregularemployment

• Thetermemployeeisnotlimitedtothoseofaparticularemployer• “Thetermemployeronewhoemploystheservicesofothers;onefor

whom employees work and who pays their wages or salaries.” AngatRiverIrrigationSystemv.AngatRiverWorker’sUnion

• DefinitionsunderD.O.No.4003o Employee – any person working for an employer. It

includes onewhosework has ceased in connectionwithany current labor dispute or because of any unfair laborpracticeandonewhohasbeendismissed fromworkbutthe legalityof thedismissal isbeingcontested ina forumofappropriatejurisdiction

o Employer–anypersonorentitywhoemploystheservicesof others, one for whom employees work andwho paystheirwagesorsalaries. It includesanypersondirectlyorindirectly acting in the interest of an employer. It shallalso refer to the enterprise where a labor organizationoperatesorseekstooperate

• The nature of a labor dispute does not require that the disputantsshould stand in the proximate relation of employer and employee,with consequent protection of concerted activities carried out bymanypersonsbelongingtoseveralemployers

3. “OneWhoseWorkHasCeased…”• Rothenberg:participationofanemployeeinastrikedoesnotremove

himfromthestatusof“employee”• Cessation of work due to strike or lockout, or to dismissal or

suspension constituting unfair labor practices, does not itself affectthe“employee”status therightsandbenefitsof theemployeeare


protected as though there had been no interruption of service,effectiveuponactualreturntowork.

• Generally, upon reinstatement of one whose dismissal constitutedunfairlaborpractice,heisentitledtobackwages,seniorityandotherrights, in order tomakewholehis loss as a result of the employer’sunlawfulact.

4. Labororganizationasemployer• Alabororganizationmaybedeemedanemployerwhenitisactingas

suchinrelationtopersonsrenderingservicesunderhire,particularlyinconnectionwithitsactivitiesforprofitorgain.Anorganizationmaybeostensiblyalaborunion,butitmayattainthestatusofanordinarybusinessconcerninthepursuitofaparticularlineofbusiness.

5. Labordispute• Thetestofwhetheralaborcontroversycomeswithinthedefinitionof

a labor dispute depends on whether it involves or concerns terms,conditionsofemploymentorrepresentation

• Any bona fide controversy concerning wage, hours or conditions ofworkorrepresentationconstitutesalabordispute

• Even the question of employer‐employee relationship can beconsideredalabordispute

• SanMiguelCorporationEmployeesunionv.Bersaminao San Miguel entered into contracts with Lipercon and

D’Ritewhich are independent contractors. It was agreedthat theworkerswould not be considered employees oragents of SMC. The CBA with the Union provided thattemporary or contractual employees are excluded fromthe bargaining unit. Yet, some of the contractualemployees joined the Union and asked to be treated asSMCemployees.SMCfiledwiththeRTC.TheUnionarguedthatthecontroversyinvolvedalabordisputeandwasthusbeyondtheregularcourt’sjurisdiction

o A labor dispute exists. While it is SMC’s submission thatthere is no employeremployee relationship exists, a labordispute can nevertheless exist “regardless of whether thedisputantsstand in theproximaterelationshipofemployerand employee”, provided the controversy concerns, amongothers,thetermsandconditionsofemploymentorachangeofarrangement thereof.Theexistenceofa labordispute isnotnegativedbythefactthattheplaintiffsanddefendantsdo not stand in the proximate relation of employer andemployee.

o Terms, tenure and conditions of the employment and thearrangementofthosetermsarethusinvolved,bringingthematterwithinthepurviewofalabordispute.

6. LaborDisputesandRemedies:Asummary• Labor dispute – any controversy or matter concerning terms or

conditions of employment or the association or representation ofpersonsinnegotiating,fixing,maintaining,changingorarrangingtheterms and conditions of employment, regardless of whether thedisputantsstandintheproximaterelationofemployerandemployee

o Nature – arises from employer‐employee relationship,althoughdisputantsneednotbeproximatelyemployeeoremployeroftheother

o Subjectmatter–(1)termsorconditionsofemploymentor(2) association or representation of persons innegotiating, fixing, maintaining, or changing terms orconditionsofemployment

• Kindsoflabordisputeso Laborstandardsdisputes

Compensation Benefits Workingconditions

o Laborrelationsdisputes OrganizationalRightDispute/ULP RepresentationDisputes BargainingDisputes Contract Administration or Personnel Policy

Disputes EmploymentTenureDisputes

• Remediesinlabordisputeso GrievanceProcedureo Conciliation(literallymeanstodrawtogether)o Mediation(literallymeanstobeinthemiddle)o Enforcementorcomplianceordero Certificationofbargainingrepresentativeso Arbitration

Voluntary–awardisfinalandunappealableexceptthroughcertiorari

Compulsory–appealable to theNLRC, then to theCA,thruspecialcivilactionofcertiorari

o Assumptionofjurisdictiono CertificationtoNLRCo Injunctiono JudicialActiono Appealo Reviewbycourto Compromiseagreement

TitleII:NationalLaborRelationsCommission

ChapterI:Creationandcomposition

Article213.

Article214.

NLRC:NatureandOrganization


1. Creationandautonomy• Before the Labor Code labor court was the Court of Industrial

Relations(CIR)• WhenmartiallawwasdeclaredCIRabolishedandreplacedwithan

adhocNationalLaborRelationsCommissiono This NLRC was short‐lived and was replaced with the

NLRCcreatedbytheLaborCode2. AdministrativeSupervisiondelegatedtotheDOLESecretary

• While Article 213 specifically states “for program coordination only”,GMAreleasedExecutiveOrderNo.204whichdelegatedtotheSecretaryof Labor “administrative supervision over the NLRC, its regionalbranchesandallitspersonnel”

o It cited twoobjectives: (1) to further improve therateofdispositionofcasesand(2)toenhanceexistingmeasuresforthepreventionofgraftandcorruptionintheNLRC

• TheSecretarywastaskedto:o Enhance existingmeasureswithin the agency, or initiate

newones, toprevent graft and corruption, and includingsuch measures as management audit, performanceevaluationsandinspectionstodeterminecompliancewithpolicies,standards,andguidelines

o To investigate, on its own or upon complaint, mattersinvoking disciplinary action against any presidentialappointees in the NLRC in accordance with existing lawandregulations

• RA9347isincorporatedinArticles213‐216o ItreiteratesthatNLRCisattachedtoDOLE“solely”

3. Essentialcharacter• TheNationalLaborRelationsCommissioncontinues toact collegially,

whether it performs administrative or rule‐making functions orexercisesappellate jurisdictiontoreviewdecisionsandfinalordersoftheLaborArbiters

4. TripartiteComposition• Chairmanand23memberscomposingtheNLRCshallbechosenfrom

theworkers,employersandthepublicsectors• Members nominated, once assume office, by the workers and

employersorganization shall divest themselvesof anyaffiliationwithorinterestinthefederationorassociationtowhichtheybelong

• Appointee to a vacancy should be a nominee of the sector thatnominatedthepredecessor

5. AllocationofpowersbetweenNLRCenbancanditsdivisions• Commissionshall sitenbanconly forpurposesofpromulgatingrules

andregulationsgoverningthehearinganddispositionofcasesbeforeany of its divisions and regional branches and formulating policiesaffectingitsadministrationandoperations(RA6517andRA9347)

• RA 7700 requires an en banc decision so that a case within thejurisdiction of one division may be heard and decided by anotherdivisionwhosedocketcanaccommodatetheadditionalworkload

• Appointment of a labor arbiter by the President needs arecommendationoftheCommissionenbanc

• Division isa legallyentity,not thepersonswhosit in it;an individualcommissionerhasnoadjudicatorypower

• Resolution on a motion for reconsideration is valid even if thecommissioners that passed the resolution are not the samecommissionerswhomadethedecisionsoughttobereconsidered

• Nothing irregular in temporary designation of a commissioner to adivision

• Territorial divisions do not confer exclusive jurisdiction to eachdivisionandaremerelydesignatedforadministrativeefficiency

6. 2005RevisedRulesofProcedureoftheNLRC• Govern proceedings before labor arbiters, NLRC divisions, NLRC en

banc

Article215.

1. NLRC commissioner is “subject to confirmation by the COA” has NOconstitutionalbasesandisthereforenullandvoid.

Article216.

ChapterII:PowersandDuties

Part1.Jurisdiction

Article217.JurisdictionofLaborArbitersandtheCommission

‐ Unfairlaborpracticecases‐ Terminationdisputes‐ Ifaccompaniedwithaclaimforreinstatement,casesthatworkersmayfile

involvingwages,ratesofpay,hoursofworkandothertermsandconditionsofemployment

‐ Claims for actual, moral, exemplary and other forms of damages arisingfromemployer‐employeerelations

‐ Cases arising from any violation of Article 264 of this Code, includingquestionsinvolvingthelegalityofstrikesandlockouts

‐ Except claims for Employees Compensation, Social Security,Medicare andmaternity benefits, all other claims, arising from employee relations,including those of persons in domestic or household service, involving anamountexceeding5k regardlessofwhetheraccompaniedwitha claim forreinstatement

1. Additionalcases• Money claims arising out of employer‐employee relationship or by

virtue of any lawor contract, involvingFilipinoworkers for overseasdeployment, including claims for actual, moral, exemplary and otherformsofdamages,aswellasemploymentterminationofOFWs

• Wage distortion disputes in unorganized establishments notvoluntarilysettledbytheparties


• Enforcementofcompromiseagreementswhenthereisnon‐compliancebyanyoftheparties

• Othercasesasmaybeprovidedbylaw2. Compulsoryarbitrationbylaborarbiters

• Arbitration is the reference of a dispute to an impartial thirdperson,chosenbythepartiesorappointedbystatutoryauthoritytohearanddecidethecaseincontroversy

• Compulsory Arbitration when consent of one of the parties isenforcedbystatutoryprovisions

o Process of settlement of labor disputes by a governmentagencywhichhastheauthoritytoinvestigateandtomakeanawardwhichisbindingonalltheparties

• NLRCappellateproceedingsnotpartofarbitrationo Labor arbiters decisions are appealable to the NLRC

sittingasanyofits8divisionso Itisthelaborarbiterwhoisclothedwiththeauthorityto

conduct compulsory arbitration on cases involvingterminationdisputesandothersmentioned

o Proceedings on appeal before the NLRC can’t beconsideredpartofthearbitrationproceedings

o WhentheLaborArbiterrendershisdecision,compulsoryarbitrationisdeemedterminated

o The NLRC en banc merely reviews the labor arbiter’sdecisionforerrorsoffactorlawandnolongerduplicatestheproceedingsbeforethelaborarbiter

• Natureofproceedingso Proceedingsbeforethelaborarbiterarenon‐litigiouso Procedure in regular courts do not apply in NLRC/labor

arbiterproceedings• Article217yieldstoArticles261and262

o Anyorallofthesecasescan,byagreementoftheparties,be presented to and decidedwith finality by a voluntaryarbitratororpanelofvoluntaryarbitrators

o In other words a case under Article 217 may be lodgedinsteadwithavoluntaryarbitratordespitetheseemingly“exclusive”jurisdictionofthelaborarbiter

3. Laborarbiter’sjurisdiction,ingeneral• HawaiianPhilippineCompanyv.Gulmatico

o Union of sugar farm workers filed with the NLRC acomplaint against Hawaiian‐Philippine for claims undertheSugarActof1952

o Petitionercontendedthatthere isnoemployer‐employeerelationship between the company and farmworkersrepresentedbytheunion

o The dispute in controversy falls under one of the casesenumerated under Article 217 arise out of or inconnectionwithanemployeremployeerelationship

o Absentthejurisdictionalrequisiteofanemployeremployeerelationship between the company and the farm workers,

the inevitable conclusion is that the NLRC is withoutjurisdictiontohearanddecidethecase.

• Supervisorycontrol,crucialo Control over the performance of the work is the crucial

indicator of employment relationship,withoutwhich thelaborarbiterhasnojurisdictionoverthedispute

o RTC that has jurisdiction if no employer‐employeerelationship and no issue involved refers to the LaborCodeorotherlaborstatutes

4. Venue• Section1,NLRCRulesofProcedure

o Regional Arbitration Branch having jurisdiction over theworkplaceofthecomplainantorpetitioner

o Workplace is place or locality where the employee isregularlyassignedatthetimethecauseofactionarose

o Field employees and ambulant or itinerant workers,workplace iswhere theyareregularlyassignedorwherethey are supposed to be regularly receive their salariesand wages or work instructions from and report theresultsoftheirassignmentstotheiremployers

o If 2 or more Regional Arbitration Branches havejurisdiction,thentheonethatfirstacquiredjurisdiction

o Whenvenueisnotobjectedtobeforethefilingofpositionpapers,suchissueshallbedeemedwaived

o Venue of an action may be changed or transferred to adifferent Regional Arbitration Branch by writtenagreement of the parties or when the Commission orLaborArbiterorders

o Cases involvingOFWs, filedwiththeRegionalArbitrationBranch having jurisdiction over the place where thecomplainantresidesorwheretheprincipalofficeofanyofthe respondents is situated, at the option of thecomplainant

• Worker’soptiono Dayagv.Canizares,NLRCandYoungConstruction

Question of venue essentially pertains to the trialandrelatesmoretotheconvenienceofthepartiesrather than upon the substance andmerits of thecase. The provisions on venue are intended toassureconveniencefortheplaintiffandhiswitnessandtopromotetheendsofjustice

The worker, being the economicallydisadvantagedparty – whether as complainant/petitioner or asrespondent, as the case may be – the nearestgovernmentalmachinery to settle the disputemustbe placed at his immediate disposal. Even in caseswherevenuehasbeen stipulatedby theparties, theCourt has not hesitated to set aside the same if itwould lead toa situationsogrossly inconvenient toonepartyastovirtuallynegatehisclaim


o WorkplaceifthecomplainantworksinavesselplyingtheManilaandCotabatoroute?SulpicioLinesv.NLRC

For purposes of venue, workplace shall beunderstood as the place or locality where theemployee is regularly assigned when the cause ofaction arose. ManilaEstanciaIloiloZamboangaCotabatoroute

• Waivero Rulere:complainant/petitioner’sworkplace,itisintended

for the exclusive benefit of the worker. As such, theworkermaywaivesaidbenefit

5. Laborarbiter’sjurisdiction:ULPCases• ULP isanyact intendedordirected toweakenordefeat theworkers’

righttoself‐organizeortoengageinlawfulconcertedactivities;carriestheeffectofanti‐unionism

• ULPcasesarewithintheoriginaljurisdictionofthelaborarbiter• NationalUnionofBankEmployeesv.JudgeLazaro

o CBTCenteredintoCBAwiththeUnion.Negotiationsweresuspended because the bank had entered into a mergerwiththeBPI.UnionfiledacasewiththeCFIagainstCBTCand BPI for specific performance, damages andpreliminaryinjunction.CFIdismissedthecase.

o Dismissal is correct. The case is an unfair labor practicecontroversywithintheoriginalandexclusivejurisdictionofthelaborarbitersandtheexclusiveappellatejurisdictionoftheNLRC.

6. CBAviolationamountingtoULP• UnderthejurisdictionofthelaborarbitersandtheNLRC• Only gross violations of a CBA are considered unfair labor practice,

hence within the jurisdiction of a labor arbiter. If not gross, theviolationisnotULP

7. Laborarbiter’sjurisdiction:terminationdisputes• Termination disputes or illegal dismissal complaints fall within the

jurisdictionofalaborarbiter• ButaquestionofoverlappingjurisdictionhasarisenbecauseofArticle

217, lastsentence. Itrequiresa laborarbiter torefer tothegrievancemachinery and voluntary arbitration all cases arising frominterpretation or enforcement of collective bargaining agreement orcompanypersonnelpolicies.

o Is the dismissal of an employee an enforcement ofpersonnel policy and, therefore, should be brought to avoluntaryarbitratorinsteadofalaborarbiter?

No,notnecessarily. San Miguel Corp v. NLRC: The usual grievances,

however, is the rules and regulations governingdisciplinary actions. Judging therefrom, thequestioned discharges due to alleged redundancycanhardlybeconsideredcompanypersonnelpoliciesand, therefore, need not directly be subject to thegrievancemachinerynortovoluntaryarbitration.

TheCourtfurthersaidthatthedismissaloftheULPcase would have been proper for voluntaryarbitrationhadthepartiesexplicitlysoagreed.

• Does a labor arbiter have jurisdiction over an illegal dismissalcomplaint filedbyachurchminister? Is theprincipleof separationofchurchandstateapplicable?

o Austriav.NLRC&CebuCityCentral It does not matter that the employer here is a

religioussectandthatitwasorganizednotforprofitbecausetheLaborCodeappliestoallestablishmentswhetherforprofitornot.

The state is prohibited from interfering in purelyecclesiastical affairs, and the church likewise isbarredfrommeddling inpurelysecularmatter.Thecaseatbenchisonlyoneofdismissalofanemployeein the exercise by the employerchurch of itsmanagement prerogatives and therefore does notconcernanyecclesiasticalmatter.WhatisinvolvedisonlytherelationshipofthechurchasanEMPLOYERand the minister as an employee which is purelySECULAR in character and has no relationwhatsoevertopracticeoffaith,worship.

• Terminationofcorporateofficer;jurisdictionoverintracorporatedisputestransferredfromSECtoRTC

o Dismissalofacorporateofficerbyacorporateboard isacorporate dispute that should be brought to the regularcourts.

Jurisdiction of the SEC over such case has beentransferred to the courts by the SecuritiesRegulationCode(RA8799)

o Dy,etal.v.NLRC CHV was director and stockholder and also

managerofARB,abankinginstitution.Anewboardpassedaresolution,electinganewbankmanager.CHV filed a complained for illegal dismissal withtheMinistryofLaborandEmploymentagainstthePresidentandVPofARB.

The controversy is intracorporate. It revolvesaroundtheelectionofdirectors,officersormanagersof the bank, the relation between and amongstockholders, and between them and thecorporation. These matters fall within thejurisdictionoftheSEC.

Thisisnotacaseofdismissal.Thesituationisthatofacorporateofficerhavingbeendeclaredvacantandof CHV’s not having been elected thereafter. Thematter of whom to elect is a prerogative thatbelongstotheBoard.Thequestionofremuneration,involvingapersonwho isa stockholderandofficer,is not a simple labor problem but a matter that


comes within the area of corporate affairs andmanagement, and is in fact an intracorporatecontroversyincontemplationofthecorporation.

o Theelection,appointmentorremovalofanexecutiveVPisaprerogativevesteduponacorporateboard.FortuneCementCorp.v.NLRC

o PD 902A: A corporate officer’s dismissal is always acorporate act, or an extracorporate controversy and thenature is not altered by the reason orwisdomwithwhichtheBoardofDirectorsmayhaveintakingsuchaction.

• Effectofclaimforbackwages,benefits,ordamageso Where the occupant is not reelected by the Board of

Directors, the officer’s complaint should be lodged withtheSEC[nowtheregularcourt],nottheNLRC,evenifthecomplaint/petitioner has claims for backwages,employmentbenefits,anddamages.

o Andayav.Abadia:inintracorporatematters,suchasthoseaffectingthecorporation,itsdirectors,trustees,officersandshareholders, the issue of consequential damagesmay justaswellberesolvedandadjudicatedbytheSEC.

• Mainland v. Movilla: The “Better Policy” in determining SECjurisdiction

o Inthiscase,thecourtupheldthejurisdictionoftheNLRCasagainstthatof theSEC.TheCourtset forththe“Betterpolicy” in determining the SEC jurisdiction; “that theparties involved are the stockholders and the corporationdoes not necessarily place the disputewithin the ambit ofthejurisdictionoftheSEC”.

o MovillawaselectedasboardmemberandAdministrativeManager of Mainland Construction. DOLE ordered thecorporationtopayits13employees,includingMovilla,theunpaid holiday pay, service incentive leave, etc. Theemployer paid all except Movilla. Hence, he filed acomplaintwiththeNLRC.TheLaborarbiterdismissedthecomplaintandsaidthattheSEChadjurisdictionbecauseitconstitutesacorporatecontroversy.

o TheNLRChasjurisdiction.o In order that the SEC can take cognizance of a case, the

controversy must pertain to any of the followingrelationships: a) between the corporation, partnership orassociation and the public; b) between the corporation,partnership or association and its stockholders, partners,members or officers; c) between the corporation,partnership or association and the State as far as itsfranchise,permitorlicensetooperateisconcerned;andd)amongthestockholders,partnersorassociates themselves.Thefactthatthepartiesinvolvedinthecontroversyareallstockholders or that the parties involved are thestockholders and the corporation does not necessarilyplace the dispute within the ambit of the jurisdiction of

SEC.Thebetterpolicytobefollowedshouldbetoconsidertheconcurrent factorssuchas thestatusorrelationshipofthepartiesorthenatureofthequestionthat isthesubjectof their controversy. In the absence of any one of thesefactors, the SECwill not have jurisdiction. Furthermore, itdoesnotnecessarilyfollowthateveryconflictbetweenthecorporation and its stockholders would involve suchcorporate matters as only the SEC can resolve in theexerciseofitsadjudicatoryorquasi‐judicialpowers.

o In the case at bench, the claim for unpaid wages andseparation pay involves a labor dispute. It relates to anemployeremployee relationship which is distinct from thecorporaterelationship.

• Tabangv.NLRC:SECjurisdictionreaffirmed;corporateofficerandintracorporatecontroversydefined

o The Court ruled that all kinds of controversies betweenstockholders and corporations fall under SEC’sjurisdiction.

o Acorporateofficeristhepresident,secretary,ortreasurerof the corporation or any other officer whose office iscreated by the board of directors as authorized orrequiredbythecorporatecharterorby‐laws.

o Anoffice iscreatedbythecharterof thecorporationandtheofficer iselectedby thedirectorsor stockholders.Anemployee usually occupies no office and is generallyemployed not by action of the directors or stockholdersbut by themanaging officer of the corporationwho alsodeterminesthecompensationtobepaidtosuchemployee.

o An intra‐corporate controversy is one which arisesbetween a stockholder and the corporation. There is nodistinction, qualification, nor any exemptionwhatsoever.The provision is broad and covers all kinds ofcontroversiesbetweenstockholdersandcorporations.

o Nacpilv.InternationalBroadcastingCorp. Nacpil was Assistant General Manager and

ComptrollerofIBC.Heallegedthathewasforcedtoretire by the new IBC president. Hence, he filed acase with the NLRC for illegal dismissal and non‐paymentofbenefits

2elementstobeconsideredindeterminingwhethertheSEChasjurisdictionoverthecontroversy,towit:(1) thestatusorrelationshipof theparties,and(2)thenatureofthequestionthatisthesubjectoftheircontroversy.

Aspetitioner’sappointmentascomptrollerrequiredtheapprovalandformalactionoftheIBC’sBoardofDirectors to become valid, it is clear therefore thatpetitionerisacorporateofficerwhosedismissalmaybethesubjectofacontroversycognizablebytheSEC[now RTC] which includes controversies involving


both election and appointment of corporatedirectors,trustees,officers,andmanagers.

o CLV: business judgment doctrine encompasses theremovalfromofficeofacorporateofficeratthediscretionof the board of directors. He ahs no security of tenure.(CLVseesanopenconstitutionalissue)

• Whenbankofficermaybearegularemployeeo PrudentialBankandTrustCo.v.Reyes

The primary standard of determining regularemployment is the reasonable connection betweentheparticularactivityperformedbytheemployeeinrelation to the usual trade or business of theemployer. As assistant vicepresident of the foreigndepartmentof thebank sheperforms tasks integralto the operations of the bank and her length ofservice with the bank totaling 28 years speaksvolumes of her status as a regular employee of thebank. As such, she is entitled to security of tenure.Her services may be terminated only for a just orauthorizedcause.TheNLRChasjurisdiction.

8. Laborarbiter’sjurisdiction:moneyclaims• A money claim arising from employer‐employee relations, excepting

SSS/ECC/Medicareclaims,iswithinthejurisdictionofalaborarbiter–o If theclaim,regardlessofamount, isaccompaniedwitha

claimforreinstatement;oro Iftheclaim,whetherornotaccompaniedwithaclaimfor

reinstatement,exceeds5kperclaimant• OnlymoneyclaimsNOTarisingfromCBA

o Original and exclusive jurisdiction of the labor arbiter islimited only to those arising from statutes or contractsotherthanaCBA.

o Thevoluntaryarbitratororpanelofvoluntaryarbitratorswill have original and exclusive jurisdiction over moneyclaims“arisingfromtheinterpretationorimplementationof the CBA, and those arising from the interpretation orenforcement of company personnel policies”, underArticle261

• Moneyclaimsmusthavearisenoutofemploymento Money claimsofworkerswhichdonot ariseoutof or in

connectionwiththeiremployer‐employeerelationshipfallwithinthegeneraljurisdictionofregularcourtsofjustice

o If an employee is claiming a prize under an incentiveprograminhiscompany,whereshouldhefilehisclaim?

PepsicolaBottlingCo.v.Martinez- TumalawasdeclaredwinneroftheLapu‐

Lapu Award in the annual Sumakwelcontest. He was entitled to a prize of ahouse and lot, but petitioner company,despite demands, refused to deliver theprize. His employment was also

terminated. He filed with the CFI.Companymovedtodismissthecomplaintongroundsoflackofjurisdiction

- Laborarbiterhasjurisdiction- The claim for said prize unquestionably

arose fromanemployeremployeerelationand, therefore, fallswithinthecoverageofArticle 217 of the Labor Code. Tumalawould not have qualified for the contest,much lesswon the prize, if hewas not anemployeeofthecompanyatthetimeoftheholding of the contest. To hold thatTumala’s claim for the prize should bepasseduponbytheregularcourtsofjusticeindependently and separately from hisclaimforbacksalaries,retirementbenefitsand damages, would be to sanction splitjurisdiction

SanMiguelCorp.v.NLRC- SMC sponsored a program granting cash

awards to employeeswhowould submitideas and suggestions beneficial to thecorporation. Rustico filed a proposal andwas accepted and implemented by SMC.He demanded a cash award of 60k. SMCrefusedtopay.

- Claim should be filed with a regularcourt.

- Money claims of workers which now fallwithin the original and exclusivejurisdiction of the labor arbiter are thosemoneyclaimswhichhavesomereasonablecausal connection with the employeremployeerelationship.ThemoneyclaimofRustico arouse out of employeremployeerelationship. However, such fact is notenough to bring suchmoney claimwithinthe original and exclusive jurisdiction ofthelaborarbiters.

- Where the claim to the principal reliefsoughtistoberesolvednotbyreferencetothe Labor Code or other labor relationsstatute or a CBA but by the general civillaw, the jurisdiction over the disputebelongstotheregularcourtsofjusticeandnottothelaborarbiterandtheNLRC.

• Moneyclaimsofcoopemployeeso Coop argues that the labor arbiter has no jurisdiction

becausethecomplainantsfailedtosubmittheirdisputetothegrievancemachineryunderPD175andbecauseofthe


non‐issuanceofaCertificateofNon‐ResolutionundertheCoopDevelopmentAuthorityLaw.Theargumentdoesnothold. The provisions apply to members, officers anddirectors of the coop involved in disputes within acooperative or between cooperatives. There is no evidencethat private respondents are members of the cooperative,andeveniftheyare,thedisputeisaboutpaymentofwages,overtime pay, rest day and termination of employment.Dispute with the original and exclusive jurisdiction of thelaborarbiter.

• Jurisdictionoverclaimsfordamages(Suariov.BPI)o Money claims ofworkers overwhich the labor arbiter has

original and exclusive jurisdiction are comprehensiveenoughtoincludeclaimsformoraldamagesofadismissedemployee against his employer. Labor arbiters and theNLRC has jurisdiction to award all kinds of damages incasesarisingfromemployeremployeerelations.LegislativeintentappearscleartoallowrecoveryinproceedingsbeforeLaborArbitersofmoralandotherformsofdamages, inallcasesormattersarisingfromemployeremployeerelations

• Splittingofactionsnotallowedo Employeewhohasbeenillegallydismissedsoastocause

him moral damages has a cause of action forreinstatement, backwages and damages. When heinstitutesproceedingsbeforetheLaborArbiter,heshouldmakeaclaimforallsaidrelief.

o Thegrantofjurisdictiontothelaborarbiterissufficientlycomprehensivetoincludeclaimsformoralandexemplarydamagessoughttoberecoveredfromanemployerbyanemployee upon the theory of his illegal dismissal. Acontrary rulewould result in the splitting of actions andtheconsequentmultiplicationofsuits.

o Hence, the judgment of the labor arbiter grantingseparationpayoperatedasabartohissubsequentactionfor the recover of damages before the CFI under thedoctrineofresjudicata.

• Employer’scomplaintfordamageso Employer’s claim for damages against an employee may

be filedas counterclaim in the illegaldismissal case filedbytheemployee.Suchclaimfor jurisdiction,arisingfromemploymentrelationship,isoutsidethejurisdictionoftheregularcourts

9. Laborarbiter’sjurisdiction:strikesandlockouts• Questions relating to work stoppage fall within the labor arbiter’s

jurisdiction• Laborarbitermaybecalledupontodecide–

o Whethertheallegedreasonforthestrikeis“strikeable”o Whethertherequiredstrikeprocedureisfollowedo Whether the strikers committedprohibitedactsduringa

strike

• BUTthepowertoissueinjunctionislodgedwiththeNLRCdivision• National interest cases are handled differently DOLE secretary or

thePresidenttoassumejurisdictionorreferthecasetotheNLRC• Another limit to the arbiter’s jurisdiction is the jurisdiction of the

regular courts to hear and decide actions filed by third parties beingaffectedbyastrikeofpeoplewhoarenottheiremployees

• Ifa crime is committedwhether in relation toa strikeornot, regularcourthasjurisdiction

10. Laborarbiter’sjurisdiction:OFW’smoneyclaimsordismissal• RA 8042: transfers from the POEA to Labor Arbiters the original and

exclusive jurisdiction to hear and decide claims arising out of anemployer‐employee relationship or by virtue of any law or contractinvolving Filipinoworkers for overseas deployment, including claimsforactual,moral,exemplaryandotherformsofdamages

• PNBv.Cabansago While in Singapore as a tourist, Cabansag god a jobwith

thePNBSingaporeBranchasaBranchCreditOfficer.Sheobtained from the Singapore Government an “EmployeePass” and with the POEA an “Overseas EmploymentCertificate” She was fired. She filed an illegal dismissalcomplaintwith theNLRC.PNBcontended that shewas alocal hire, having been hired in Singapore and thereforeSingaporelaws,customsandpracticeshouldgovern

o Cabansag’s obtainingan employmentpass fromSingaporeMinistry ofManpowerwasmerely a compliancewith thatcountry’s immigration regulations. The pass or the permitdoes not imply a waiver of the worker’s national laws onlabor. Absent clear evidence to the contrary, the permitsimplymeansthatitsholderhasalegalstatusasworkerintheissuingcountry.Cabansagisamigrantworker,makingher subject to Philippine laws on the jurisdiction of theNLRC and the labor statutes. Based on RA 8042, laborarbiters clearly have original and jurisdiction over claimsarising from employeremployee relations, includingtermination disputes involving all workers, among whomareOFWs.

o Whether employed locally or overseas, all Filipinoworkersenjoy the protective mantle of the Philippine labor andsocial legislation, contract promulgated, or bydetermination or conventions agreed upon in a foreigncountry.

11. Laborarbiter’sjurisdiction:wagedistortion• Salary distortion case is resolved either through the CBAmechanism

or,inunorganizedestablishments,throughtheNCMB.• If NCMB fails to resolve the dispute in 10 days of conciliation

conferences,itshallbereferredtotheappropriatebranchoftheNLRC12. Laborarbiter’sjurisdiction:disputesovercompromisesettlements

• Ifthereisnoncompliancewiththecompromiseagreementorifthereisprima facie evidence that the settlementwas obtained through fraud


misrepresentation, or coercion, the NLRC through the labor arbitermayassumejurisdictionoversuchdispute

13. Submissiontojurisdiction• Partycan’tinvokethejurisdictionofacourttosecureaffirmativerelief

againsthisopponentand,afterobtainingorfailingtoobtainsuchrelief,repudiateorquestionthatsamejurisdiction

• Socov.MercantileCorp.o Whenthecomplaintforunderpaymentofminimumwage

was pending before the Regional Director, the employerdidnot raise the issueof jurisdictionbut insteadactivelyparticipated in the hearings.When the case reached theSC,employerobjected to the jurisdictionof theSecretaryofLaborandtheRegionalDirector

o This contention can’t be considered. After voluntarilysubmittingacauseandencounteringanadversedecisiononthe merits, it is too late of the loser to question thejurisdictionorpowerofthecourt.

• Anotherlineofcourtdecisionsholdsadifferentview:itisthelawthatdetermines the jurisdiction of an adjudicating body and not theinitiativeoracquiescenceofthedisputants

o Wheneveritappearsthatthecourthasnojurisdictionoverthe subject matter, the action shall be dismissed. Thisdefensemaybeimposedatanytime.(LaNavalDrugsv.CA)

14. Immunityofforeigngovernments• Immunityistheexemptionofthestateanditsorgansfromthejudicial

jurisdictionofanotherstate;anequalhasnopoweroveranequal• Applicationofthedoctrineofimmunityfromsuithasbeenrestrictedto

sovereignorgovernmentalactivities(jureimperii)• Itcan’tbeextendedtocommercial,private,andproprietaryacts(jure

gestionis)• ImmunityoftheUNanditsspecializedagencies

o Convention on the Privileges and Immunities of theSpecialized Agencies of the UN: immunity granted to theUNanditsspecializedagencies

o United Nations Revolving Fund for Natural ResourcesExploration:grantsimmunity

15. Executingmoneyclaimsagainstthegovernment• Evenwhenagovernmentagencyentersintoabusinesscontractwitha

private entity, it is not the Labor Code but CA 327 that applies inpursuing amoney claim (against the Government) arising from suchcontract

• DAv.NLRCo Department of Agriculture and Sultan Security Agency

entered into a contract for security service. Guards fromtheAgency filedacomplaint forunderpaymentofwages,nonpaymentof13thmonthpay,uniformallowances,nightshift differential pay, holiday pay and overtime pay anddamagesagainsttheDAandAgency.

o Doctrineofstate’simmunityfromsuit

o Notallcontractsenteredintobythegovernmentoperateasawaiver of its nonsuability; distinctionmust still bemadebetweenonewhich is executed in theexerciseof sovereignfunction and another which is done in its proprietarycapacity

o TheDAhasnotpretendedtohaveassumedacapacityapartfrom its being a governmental entitywhen it entered intothe questioned contract. The claims of private respondentarising from Contract for Security Services, clearlyconstitutemoneyclaims.

o CA 327 money claim should first be brought to theCommissiononAudit

16. Localwaterdistrict• HagonoyWaterDistrict v.NLRC: localwater districts are quasi‐public

corporationswhoseemployeesbelongtothecivilservice,hence,casesshallbegovernedbythecivilservicelaw

• Exception:whereNLRCjurisdictionisinvokedo ZamboangaWaterDistrict had a strike andmanagement

filedacomplaintwiththelaborarbiter.ThewaterdistrictquestionedthejurisdictionwiththeSC.

Itisonlynowinthiscasebeforeus,aftertheNLRCorderedpayment,thatpetitionerraisesthe issueof lackof jurisdiction. It isnot fair forapartywhohasvoluntarily invoked thejurisdictionofatribunalinaparticularmattertosecureanaffirmativerelieftherefrom,toafterwardsrepudiateanddenythatverysamejurisdiction.

17. RA6715–Retroactive?• Retroactive,becauseamendmentsrelative to the jurisdictionofLabor

Arbiterspartakeofthenatureofcurativestatutes• ButtherearedifferentSCcaseswhereretroactivitywasnotapplied

o SCexplainsassuch: Decisions on whether to give RA 6715 retroactive

application or not depended to a great extent onwhatamendedprovisionswereunderconsideration,as well as the factual circumstances to which theyweremadetoapply.

ChapterII:PowersandDuties

Article218.PowersoftheCommission

Article219.Ocularinspection

1. PowersoftheCommission• Rulemakingpower

o Commission has the power to promulgate rules andregulations–


Governing the hearing and disposition of casesbeforeitanditsregionalbranches

Pertainingtoitsinternalfunctions Those that may be necessary to carry out the

purposesofthisCodeo These rules and regulations have the force and effect of

law Adminlaw:administrativeregulationsandpolicies

enacted by administrative bodies to interpret thelawwhich they are entrusted to enforce, have theforceoflawandareentitledtogreatrespect

Rulesand regulationsmustnotbe in conflictwithorcontrarytotheLaborCodeandotherlaws

• Powertoissuecompulsoryprocesso Commissionhaspowerto–

Administeroaths Summonparties Issuesubpoenasadtestificandumandducestecum

• Powertoinvestigateandheardisputeswithinitsjurisdictiono Commissionhaspowerto–

Conduct investigations for the determination of aquestion, matter or controversy within itsjurisdiction;and

Proceedtohearanddeterminethedisputes inthemanner laid down under paragraph (c) of Article218

• Contemptpowero Contempt is disobedience to the Court by setting up an

oppositiontoitsauthority,justiceanddignity.o Contemptsignifieswillfuldisregardordisobedienceofthe

court’s orders and it is conduct that tends to bring theauthority of the court and the administrationof law intodisrepute or in some manner to impede the dueadministrationofjustice

o Disobedienceorresistancetoalawfulwrit,process,order,judgmentorcommandofacourtorinjunctiongrantedbyacourtorjudgeconstitutesindirectcontempt,punishableunderRule71oftheRulesofCourt

• Powertoconductocularinspectiono (1) Chairman, (2) Commissioner, (3) Labor Arbiter, (4)

representativemay,ATANYTIMEDURINGWORKHOURS–

Conduct an ocular inspection on establishment,building, ship or vessel, place or premises,including any work, material, implement,machinery,applianceoranyobjecttherein

Ask any employee, laborer or any person forinformation concerning any matter or questionrelativetotheobjectoftheinvestigation

o Azucena: inspection power is but an adjunct to theadjudicatoryfunction;canonlybeexercisedonlytoassistorexpediteadjudicationofapendingdispute

• Adjudicatorypower:originalo NLRCdivisionshasoriginal jurisdictionoverpetitionsfor

injunctionorforTROo It has original jurisdiction to hear and decide national

interestcasescertifiedtoitbytheSecretaryofLabor NLRC gains jurisdiction over all questions

submitted, even over issues that otherwise fallwithinthelaborarbiter’sexclusivejurisdiction

• Adjudicatorypower:appellateo NLRC has exclusive appellate jurisdiction over all cases

decided by the labor arbiters and the DOLE regionaldirectororhearingofficers

Wherethe laborarbiterhasno jurisdiction,orhasnotacquiredjurisdiction,neitherhastheNLRC.

o NLRC has no appellate jurisdiction over the decisionsenumeratedbelow,becausetheyareinsteadappealabletotheCA–

Decisionsbyavoluntaryarbitrator TheSecretaryofLabor The Bureau of Labor Relations Director on cases

appealedfromtheDOLEregionalofficeso Pondocv.NLRC

Pondocwonajudgmentatthelaborarbiter’slevel,ordering his employer to pay sums of money.Employer moved that his liabilities be set‐offagainst the employee’s alleged unpaidindebtedness to him. Labor arbiter denied andissued writ of execution. But the employer thenfiled with the NLRC an action for injunction anddamages.NLRCsetasideorderofthelaborarbiterandallowedset‐off

Issue: May a division of the NLRC defeat a finaljudgment of the labor arbiter by entertaining apetition for injunction and damages and byreceivingevidenceregardingtheindebtedness?NO

The NLRC SHOULD NOT have entertained theseparate action for injunction and damages. Itwasan obvious scheme to defeat the decision of thelabor arbiter. The Labor Code does not provideblanketauthoritytotheNLRCoranyofitsdivisionstoissuewritsofinjunctions.

Appealofemployerwasnotfromthedecision,butfromtheorderofthelaborarbiter,denyingtheset‐off. Hence, employer admitted the executorycharacterofthejudgment.

Besides,noshowingthatindebtednessassertedbyemployer arose out of the employer‐employee


relationship.Hence, the laborarbiterdidnothavejurisdictionover thatclaim. Ifaclaimdoesnot fallwithintheexclusiveoriginaljurisdictionoftheLaborArbiter,theNLRCcannothaveappellatejurisdictionthereon.

2. PowertoissueinjunctionorTRO• Injunctionpoweristhepowertocommandthatanactbedoneornot

done.Itmayeitherrequire,forbid,orstopthedoingofanact• Injunctionorrestrainingordersarefrowneduponasamatteroflabor

relationspolicy• Action for injunction is distinct from the ancillary remedy of

preliminary injunctionwhich cannot exist except only as part or anincidentofanindependentactionorproceeding

• Underthepresentstateofthelaw,themainactionofinjunctionseeksa judgment embodying a final injunctionwhich is distinct from, andshould not be confusedwith the provisional remedy of preliminaryinjunction,thesoleobjectofwhichistopreservethestatusquountilthemerits canbeherd.Awrit ofpreliminary injunction is generallybased solely on initial and incomplete evidence. Evidence submittedduring the hearing on an application for a writ of preliminaryinjunction is not conclusive or complete for only a “sampling” isneeded to give the trial court an idea of the justification for thepreliminaryinjunctionpendingthedecisionofthecaseonthemerits.

• Reasonsforthepetitionforinjunctionmustbespecified,butitisnotnecessary toallege inverbatimtherequisites for the issuanceof thetemporary restraining order and/or writ of preliminary injunctionunderArticle218(e)oftheLaborCode

• Where theNLRCdidnot follow andobserve theprocedure outlinedand provided for the Labor Code in issuing the preliminary writ ofprohibitory injunction, the saidwrit is illegal and void, although thecourthadjurisdictiontoissueit

• Injunctionbylaborarbitero RulesofProcedure(1990)oftheNLRCancillarypower

of issuing preliminary injunction or a restraining order“maybeexercisedbytheLaborArbiteronlyasanincidenttothecasespendingbeforetheminordertopreservetherightsofthepartiesduringthependencyofthecasesbutexcludinglabordisputesinvolvingstrieorlockout

o NOW,2002and2005NLRCRulestheabovestatementno longer appears; Commissioner Veloso said that thelabor arbiter is “excluded statutorily,” hence no NLRCRulescangranthimthatpower

• Requisitesforissuanceofrestrainingorderorinjunctiono Restraining orders or injunctionsDONOT issue ex parte

andonlyaftercompliancewiththefollowingrequisites: A hearing held “after due and personal notice

thereof has been served to all known personsagainstwhomreliefissought,andalsototheChiefExecutiveandotherpublicofficialsoftheprovinceor city within which the unlawful acts have been

threatenedorcommittedchargedwiththedutytoprotectcomplaint’sproperty

Reception at the hearing of “testimony ofwitnesses,withopportunityforcross‐examination,in support of the allegations of a complaintmadeunder oath,” as well as “testimony in oppositionthereto,ifoffered”

“A findingof factby theCommission to theeffect:(1) that prohibited or unlawful acts have beenthreatened and will be committed and will becontinued unless restrained, but no injunction orTRO shall be issued on account of any threat,prohibited or unlawful act, except against theperson or persons, association or organizationmakingthethreat,orcommittingtheprohibitedorunlawfulactoractuallyauthorizingorratifyingthesame after actual knowledge thereof; (2) thatsubstantial and irreparable injury to complaint’sproperty will follow; (3) that as to each item ofrelief tobegranted,greater injurywillbe inflictedupon complainant by the denial of relief thanwillbe inflicted upon defendants by the granting ofrelief; (4) that complainant has no adequateremedy at law; and (5) that the public officerscharged with the duty to protect complainant’sproperty are unable or unwilling to furnishadequateprotection

• ConditionsforissuanceexparteofaTROo TRO(validonlyfor20days)maybeissuedexparteunder

thefollowingconditions: Complainant shall also allege that, unless a TRO

shall be issued without notice, a substantial andirreparableinjurytocomplainant’spropertywillbeunavoidable

There is testimony under oath, sufficient, ifsustained, to justify the Commission in issuing atemporaryinjunctionuponhearingafternotice

Complainant shall first file an undertaking withadequate security inanamount tobe fixedby theCommission sufficient to recompense thoseenjoinedforanyloss,expenseordamagecausedbythe improvident or erroneous issuance of suchorderor injunction, includingall reasonable costs,together with a reasonable attorney’s fee, andexpenseofdefenseagainsttheorderoragainstthegrantingofanyinjunctivereliefsoughtinthesameproceeding and subsequently denied by theCommission

TRO shall be effective for no longer than 20 daysandshallbecomevoidattheexpirationof20days


o Issuanceshouldbecharacterizedbycareandcaution forthe law requires that it be clearly justified byconsiderationsofextremenecessity

o Injury is irreparable if it isofsuchconstantand frequentrecurrencethatnofairandreasonableredresscanbehadtherefore inacourtof laworwherethere isnostandardbywhich theiramountcanbemeasuredwithreasonableaccuracy, that is, it is not susceptible of mathematicalcomputation.

Itcan’tbeadequatelycompensatedindamagesduetothenatureoftheinjuryitselforthenatureoftherightorproperty injuredor when thereexistsnocertainpecuniarystandardforthemeasurementofdamages

o Property includesnotonly tangiblepropertybutalso therighttousesuchproperty

o Publicofficersmeanslocallawenforcingofficerso Injunction can’t issue against unlawful acts, unless the

localauthoritieswhosedutyistokeepthepeacehavefirstbeenresorted toandhaveeitheradvised that theycouldnotorwouldnotkeep it,oradvising that theycouldandwouldhavefailedthroughinabilityorunwillingnesstodoso

o Protection is that which would enable the employer toproceedwiththework

o Employer may not seek by injunction protection fromlosseswhichtheexerciseofthepowersofthepolicecouldnotbecalculatedtoprevent

Intent of this requirement is to take the executivefunction of law enforcement out of the court andleaveittotheappropriateexecutiveofficers,unlesstheyfailtofunction

Publicofficersshouldbeservednoticeofhearingoftheapplicationforinjunction

• Noadequateremedyo Adequate remedy at law is one that affords relief with

reference to the matter in controversy, and which isappropriatetotheparticularcircumstancesofthecase

o Existenceofaremedyatlawdoesnotnecessarilyprecludeinjunctiverelief.A remedyat lawmust, in the firstplace,be plain and no doubtful or obscure. It must also becomplete

• Cashbondo NoTROorwrit of preliminary injunction shall be issued

except on the condition that petitioner shall first file anundertaking to answer for the damages and post a cashbond(50k),orsuchhigheramountasmaydeterminedbytheCommission.

o Purpose: to recompense those enjoined for any loss,expense or damage caused by the improvident or

erroneous issuanceofsuchorderor injunction, includingall reasonable costs, attorney’s fee, expense of defenseagainsttheorderoragainstthegrantingofanyinjunctiverelief sought in the same proceeding and subsequentlydeniedbytheCommission

• Scopeo Injunction restricted not only to the specific acts

complained of in the pleadings and proven at trials aswrongful, but further, limits the injunction to only thosealleged and proven guilty of actual participation,authorizationorratificationofsuchacts

o PowerofNLRCtoenjoinorrestrainthecommissionofanyorallprohibitedorunlawfulactscanONLYbeexercisedinalabordispute

• Receptionofevidenceo Reception of evidence may be delegated by the

CommissiontoanyofitsLaborArbiters[nowCommissionAttorney, as per RA 9347] who shall conduct suchhearings in such places as he may determine to beaccessible to the parties and their witnesses and shallsubmitthereafterhisrecommendationtotheCommission

• TwentydaylifeofTROo TRO, if issued, valid only for 20 days and becomes void

ipsofactoattheendofthatperiodo TROtakeseffectuponitsissuanceandnotuponreceiptof

thepartieso Maximum 20 days includes Saturdays, Sundays, and

holidays• Illustrativecase:issuanceofTRO

o Ilaw at Buklod ng Manggagawa v. NLRC and San MiguelCorp:petitionforinjunctionandTROmaybefiledwiththeNLRC where the complaint filed with the labor arbiteragainst slowdown by petitioner’s employees has notyieldedadequaterelief

Claiming that its action in the Arbitration Branchhadasyetyieldednorelief,SanMiguelCorp(SMC)filed another complaint against the Union andmembers thereofdirectlywith theNLRC, toenjoinandrestrainillegalslowdownandfordamages,withprayer for the issuance of a ceaseanddesist andTRO.TROwasissued.Unionfiledpetition,assertingNLRC had no jurisdiction to act on the plea forinjunctioninthefirstinstance

SCruled thatNLRCactedwithin its jurisdiction. ItactedonSMC’sapplicationforimmediateissuanceofa TRO ex parte on the ground that substantial andirreparable injury to its property would transpirebeforethemattercouldbeheardonnotice

• InjunctionfromNLRCnottheproperremedyagainstemployee’sdismissal


o PAL v. NLRC: Employee dismissal; no case had yet beenfiled with the labor arbiter when the petition forinjunctionwasfiledwiththeNLRC.TheSCinvalidatedtheinjunctionissuedbyNLRC.Apetitionforinjunctionisnotthewaytohaltonemployee’sdismissal

PALdismissed2flightstewardsforinvolvementinalleged smuggling. Employees, instead of filing anillegal dismissal complaint before a labor arbiter,directly petitioned the NLRC for injunction, withprayer for a TRO, to prohibit PAL from effectingtheir dismissal. NLRC issued the injunction. PALdisputedlegalityoftheissuanceoftheinjunction.

Power of the NLRC to issue an injunctive writoriginates from any labor dispute upon applicationbyaparty thereof,whichapplication ifnotgrantedmaycausegraveorirreparabledamagetoanypartyor render ineffectual any decision in favor of suchparty

Itisanessentialrequirementthattheremustfirstbea labor dispute between the contending partiesbeforethelaborarbiter.

In the present case, there is no labor disputebetween PAL and the employees as there has yetbeen no complaint for illegal dismissal filed withthe labor arbiter by the employees against thepetitioner.

ChapterII:Powersandduties(cont’d.)

Article221.Technicalrulesnotbindingandpriorresorttoamicablesettlement.

1. Proceedingsbefore laborarbiteror theCommission; technical rulesnotapplicable

• Administrative and quasi‐judicial bodies are not bound by thetechnicalrulesofprocedureintheadjudicationofcases

• Simplificationofprocedure,withoutregardtotechnicalitiesoflaworprocedure andwithout sacrificing the fundamental requisites of dueprocess,ismandatedtoinsurespeedyadministrationofjustice

o NLRC or Labor Arbiter can decide case on the basis ofpositionpapersandotherdocumentsalone

o Affidavits may be given evidentiary value even if theaffiantswerenotcross‐examined;hearsaydoesnotapply

• ModicumofAdmissibility;substantialevidenceo Evidence presented before it must at least have a

modicumofadmissibilityforittobegivensomeprobativevalue

o Evidencemustbesubstantialorsuchrelevantevidenceasareasonablemindmightacceptasadequatetosupportaconclusion

• Cardinalrightsinquasijudicialproceedingso There are cardinal primary rights which must be

respectedinadministrativeorquasi‐judicialproceedings.o AngTibayv.CIR

CaseregardinglayingoffofemployeesofAngTibaybelongingtotheNationalLaborUnion(NLU

Issue:WhethertherewasdueprocessobservedintheCIRproceedings?

CIR is more of a administrative board; It is notnarrowly constrained by technical rules ofprocedure.However, thisdoesnotmeanthat itcanentirely ignore or disregard the fundamental andessential requirements of due process in trials andinvestigationsofanadministrativecharacter.

There are cardinal primary rights which must berespectedeveninproceedingsofthischaracter:

Righttoahearing Tribunal must consider the evidence

presented Decisionmustbesupportedbysomething

(evidence) Supportingevidencemustbesubstantial Decision must be rendered on the

evidence presented or at least containedintherecordanddisclosedtothepartiesaffected

BodyorCIRoranyof its judgesmustactonhisown independent considerationofthe law and facts, and not simply accepttheviewsofthesubordinateinarrivingatadecision

Decide in such manner that parties canknowthevariousissuesinvolvedandthereasonforthedecision

• Verificationo A pleading is verified by an affidavit that the affiant has

readthepleadingandthattheallegationsthereinaretrueandcorrectofhisknowledgeandbelief.

o Itisintendedtoassurethattheallegationsinthepleadinghavebeenpreparedingoodfaithoraretrueandcorrect,notmerespeculations

o Generally, lack of verification is merely a formal defectthatisneitherjurisdictionalnorfatal

Court may order correction of pleading or act onthe unverified pleading if the attendingcircumstancesaresuchthatstrictcompliancewith


the rulemay be dispensedwith in order to servetheendsofjustice

• PartyRespondento MayonHotel&Restaurant,etal.v.Adarna

Mayon Hotel & Restaurant is a single proprietorbusiness registered in the name of Pacita O. Po,whosemother, Josefa,manages the establishment.Employees filed complaints for underpayment ofwagesandothermoneyclaimsagainstpetitioners.Labor arbiter granted the money claims. Laborarbiteralsoheldthatbasedontheevidence,JosefaPoLamwastheowner/proprietoreventhoughtheregisteredownerwasPacita,thedaughter.

Was it correct to hold Josefa Po Lam liable as theowner,andtheproperrespondentinthecase?YES.

OnlyJosefaappearedintheproceedingsanditwasonlyonappealwiththeNLRCthatPacitasignedthepleading. The findings of the Labor Arbiter werebased on credible, competent and substantialevidence.

Article221oftheLaborCodeisclear:technicalrulesare not binding, and the application of technicalrulesofproceduremaybe relaxed in labor cases toserve the demand of substantial justice. In acomplaint for underpayment of wages and othermoney claims filed by employees of a singleproprietorship business, the respondent should bethebusinessowner.Thisisnotnecessarilythepersoninwhosenamethebusinessisregistered.

• Prohibitedpleadingsandmotionso NLRC2005Rulesprohibitthefollowing:

Motion to dismiss the complaint except on theground of lack of jurisdiction over the subjectmatter, improper venue, res judicata, prescriptionandforumshopping

MotionforaBillofParticulars Motionfornewtrial Petition for relief from judgment when filed with

theLaborArbiter PetitionforCertiorari,Mandamus,orProhibition Motiontodeclarerespondentindefault Motion for Reconsideration or appeal from any

interlocutoryorderoftheLaborArbiter2. Mandatory conciliation and mediation conference; compromise

encouraged• Natureofproceedings

o ProceedingsbeforetheLaborArbitershallbenon‐litigous• Mandatoryconciliationandmediationconference

o Suchiscalledforthepurposeof Amicablysettlingthecaseuponafaircompromise

Determiningtherealpartiesintheinterest Determining the necessity of amending the

complaintandincludingallcausesofaction Definingandsimplifyingtheissuesinthecase Enteringintoadmissionsorstipulationoffacts Threshingoutalltheotherpreliminarymatters

o Labor arbiter shall preside and take full control of theproceedings

o ConciliationandmediationeffortsshallbeexertedbytheLaborArbiter all throughout theproceedings. Should theparties arrive at any agreement as to the whole or anypart of thedispute, the same shall be reduced towritingandsignedby thepartiesand theirrespectivecounselorauthorizedrepresentative,ifany,beforetheLaborArbiter

o Compromise agreement shall be approved by the LaborArbiter, if after explaining to the parties, particularly tothecomplainants,heissatisfiedthattheyunderstandtheagreement, that the same was entered into freely andvoluntarily by them, and that it is not contrary to law,morals,andpublicpolicy

o Compromise agreement final and binding upon theparties and shall have the force and effect of judgmentrenderedbytheLaborArbiter

o Mandatory conciliation and mediation conference shall,except for justifiable grounds, be terminated within 30calendardaysfromthedateofthefirstconference

o Nomotion for postponement shall be entertained exceptonmeritoriousgrounds

• Effectoffailureofconciliationandmediationo Ifpartiesfailtoagreeuponanamicablesettlement,Labor

Arbiter shall terminate the conciliation and mediationstage and proceed to pursue the other purposesmentionedabove

o Thereafter, Labor arbiter shall direct parties tosimultaneouslyfiletheirrespectivepositionpapersontheissuesagreeduponby thepartiesandas reflected in theminutesoftheproceedings

• Nonappearanceofpartieso Non‐appearanceofcomplainantorpetitionerduringthe2

settings for mandatory conciliation and mediationconferencescheduledinthesummons,despiteduenoticethereof, shall be a ground for the dismissal of the casewithoutprejudice

o In case of non‐appearance by the respondent during thefirst scheduled conference, the second conference shallproceed as scheduled in the summons. If the respondentstillfailstoappearatthesecondconferencedespitebeingduly served with summons, the Labor Arbiter shallimmediately terminate the mandatory conciliation andmediation conference. The Labor Arbiter shall thereafter


allow the complainant or petitioner to file his verifiedposition paper and submit evidence in support of hiscausesofaction,andthereuponrenderhisdecisiononthebasisoftheevidenceonrecord.

o It is incumbent upon the Labor Arbiter not only topersuade the parties to settle amicably, but equally toensure that the compromise agreement entered into bythem is a fair one and that the same was forged freely,voluntarily,andwith fullunderstandingof the termsandconditionsaswellastheconsequences

• Bindingeffectofcompromiseagreemento A judgment on a compromise agreement puts an end to

litigationandisimmediatelyexecutory.o Rules of Court requires a special authority before an

attorneycancompromisethelitigationofhisclientso NLRC Rules: Attorneys and other representatives of

parties shall have authority to bind their clients in allmatters of procedure, but they cannot, without a specialpower of attorney or express consent, enter into acompromiseagreementwiththeopposingpartyinfullorpartialdischargeofaclient’sclaim

o GeneralRubberandFootwearCorporationv.Drilon Wage Order No. 6 was issued increasing the

statutory minimum wage rate. General Rubberapplied for exemption but its application wasdenied.Uniondeclaredastrike.Later,thecompanyand Sto. Domingo, purporting to represent thestriking workers, entered into a return‐to‐workagreement,wheretheUnionagreednottodemandthedifferentialpay.100membersdidnotratifythedocument.

Is the waiver agreement binding upon all themembersoftheunion,eventhosewhodidnotsignit?

The100workerscan’tbeboundbytheagreement.Waiverofthemoneyclaimsisapersonalright.Fora waiver thereof to be legally effective, theindividualconsentorratificationoftheworkersoremployeesinvolvedmustbeshown.SinceArticle4of the returntowork agreement was notenforceable against the nonconsenting unionmembers, the order of the NationalWages Councilmust be regarded as having become final andexecutory insofar as the nonconsenting unionmemberswereconcerned.

• Quitclaimandwaiverso Olacao,etalv.NLRC

Employeesfiledacomplaint forunpaidwagesandlivingallowancesagainsttheiremployer.Oneoftheissues was whether the documents each signed

individually by complainants denominated as“Receipts and Release” were legally binding. In1978, complainants filed another complaint forillegaldismissal,prayingforreinstatementwithfullbackwages. Labor Arbiter dismissed the case butorderedthecompanytopayseparationpay.NLRCreversed, saying that terminationpaywasalreadydecided in the previous case and was barred bypriorjudgment.

Res judicata! Complainants had already been paidtheir several money claims including theirterminationpay.

Petitioner further contend that their acceptance ofseparationpaydoesnotoperateasawaiveroftheirclaims in the “IllegalDismissal Case.” Jurisprudenceexiststotheeffectthatadeedofreleaseorquitclaimcannotbaranemployeefromdemandingbenefitstowhich he is legally entitled; that quitclaims and/orcompletereleasesexecutedbytheemployeesdonotestop them from pursuing their claim arising fromthe unfair labor practice of the employer; and thatemployeeswhoreceivedtheirseparationpayarenotbarredfromcontestingthelegalityoftheirdismissal,and that acceptance of those benefits would notamounttoestoppel

• Finalandexecutoryjudgmentcannotbenegotiatedo Although compromise agreements are encouraged, this

generalruledoesnotapplytodecisionsthathavebecomefinalandexecutory

o A final and executory judgment cannot be negotiated,hence,anyacttosubvertitiscontemptuous

3. Motiontodismiss• 1989: Labor code and theNLRCRules didnot provide for a specific

periodwithinwhichtofileamotiontodismiss• NOW: 2005 NLRC Rules On or before the date set for the

mandatory conciliation and mediation conference, the respondentmayfileamotiontodismiss.

• Motupropriodismissalofcomplaintbasedonprescriptiono Motupropriodismissifitisapparentfromitsfacethatthe

actionhasprescribed• Resjudicataasreasontodismisscomplaint

o Delfin,etalv.Inciong Requisitesforpriorjudgmenttoconstituteabartoa

subsequentcase– Itmustbeafinaljudgmentororder Court rendering the same must have

jurisdictionoversubjectmatterandparties Judgmentororderonthemerits


Theremustbebetweenthe2casesidentityof parties, subject matter and cause ofaction

Court of Industrial relations decision was alreadyfinal and executory. There is identity in cause ofaction regarding the unfair labor practicescommittedbyAtlanticagainstitsemployees.

Unionshouldnotbeallowedtosplitcausesofaction– charges should include all acts of unfair laborpracticecommittedagainstanyandallmembersoftheunionduringthatperiod.

• Nodismissalofcomplaintdespitedeatho Proprietor of the company died intestate. Case was not

extinguished because of the death of the proprietorbecause it is one for reinstatement of the dismissedemployeesfromtheirwork.Itwasnotamoneyclaim

• Revivalorrefilingofdismissedcaseo Dismissedcaseisnotnecessarilydead

Partymayfileamotiontoreviveorre‐openacasedismissedwithout prejudice,within 10 days fromreceiptofnoticeof theorderdismissingthesame;otherwise his only remedy shall be to refile thecaseinthearbitrationbranchoforigin

4. Submissionofpositionpapersandreply• Determinationofnecessityofhearingorclarificatoryconference

o Immediately after the submission by the parties of theirposition paper or reply, as the case may be, the LaborArbitershall,motuproprio,determinewhetherthereisaneed for a hearing or clarificatory conference. At thisstage, he may, at his discretion and for the purpose ofmakingsuchdetermination,askclarificatoryquestionstofurther elicit facts or information, including but notlimited to the subpoena of relevant documentaryevidence,ifany,fromanypartyorwitness.

• Roleofthelaborarbiterinhearingandclarificatoryconferenceo The Labor Arbiter shall take full control and personally

conduct the hearing or clarificatory conference. Unlessotherwise provided by law, the Labor Arbiter shalldetermine the order of presentation of evidence by theparties, subject to the requirements of due process. Heshallexaminethepartiesandtheirwitnesseswithrespectto the matters at issue; and ask questions only for thepurposeofclarifyingpointsof lawor fact involved in thecase.Heshalllimitthepresentationofevidencetomattersrelevant to the issuebeforehimandnecessary for a justandspeedydispositionofthecase.

o In the cross‐examination of witnesses, only relevant,pertinent and material questions necessary to enlightentheLaborArbitershallbeallowed.

o The Labor Arbiter shall make a written summary of theproceedings, including the substance of the evidencepresented, in consultation with the parties. The writtensummaryshallbesignedbythepartiesandshallformpartoftherecords.

• Nonappearance of parties; postponement of hearing andclarificatoryconferences

o Non‐appearance at a hearing or clarificatory conferenceby the complainant or petitioner, whowas duly notifiedthereof, may be sufficient cause to dismiss the casewithoutprejudice.SubjecttoSection16ofthisRule,whereproperjustificationisshownbypropermotiontowarrantthe re‐opening of the case, the Labor Arbiter shall callanother hearing or clarificatory conference and continuethe proceedings until the case is finally decided. Thedismissal of the case for the second time due to theunjustified non‐appearance of the complainant orpetitioner, who was duly notified of the clarificatoryhearing,shallbewithprejudice.

o Incase therespondent fails toappearduring thehearingorclarificatoryconferencedespiteduenoticethereof,thecomplainant shall be allowed to present evidence ex‐parte,withoutprejudice tocross‐examinationat thenexthearing or conference. 2 successive non‐appearances bythe respondent during his scheduled presentation ofevidence or opportunity to cross‐examine witnesses,despiteduenoticethereof,shallbeconstruedasawaiveron his part to present evidence or conduct cross‐examination.

o ThepartiesandtheircounselsappearingbeforetheLaborArbiter shall be prepared for continuous hearing orclarificatoryconference.Nopostponementorcontinuanceshall be allowed by the Labor Arbiter, except uponmeritorious grounds and subject always to therequirement of expeditious disposition of cases. In anycase, the hearing or clarificatory conference shall beterminatedwithinninety(90)calendardaysfromthedateoftheinitialhearingorconference.

o In cases involving overseas Filipino workers, theaggregate period for conducting the mandatoryconciliation andmediation conference, including hearingonthemeritsorclarificatoryconference,shallnotexceed60 days, which shall be reckoned from the date ofacquisition of jurisdiction by the Labor Arbiter over thepersonoftherespondents.

5. Submissionofthecasefordecision• Uponthesubmissionbythepartiesoftheirpositionpapersorreplies,

orthelapseoftheperiodtosubmitthesame,thecaseshallbedeemedsubmittedfordecisionunlesstheLaborArbitercallsforahearingorclarificatory conference in accordancewith Section8of thisRule, in


which case, notice of hearing or clarificatory conference shall beimmediatelysenttotheparties.Uponterminationofthesaidhearingorconference,thecaseshallbedeemedsubmittedfordecision.

• Positionpapersasbasisofdecisiono Procedure by which issues are resolved based only on

position papers, affidavits or documentary evidence, ifagreed upon by the parties, may be availed of by thearbiter

Notviolativeofdueprocessclause Affidavits in such casemay take theplaceof their

directtestimony Laborarbitermaystillchoosetocallforahearing

o If the employer filed no position paper despite adequatenotice,laborarbiterisjustifiedindecidingthecasebasedonthepositionpapersonrecord

• Lackofverification,notfatalo Lackofverificationofpositionpaper‐affidavit isa formal

defect.Itcouldeasilybecorrectedbyrequiringanoath• Dueprocess:opportunitytobeheard

o Proceduraldueprocessmeansthatapartytoacasemustbegivensufficientopportunitytobeheard

o Whatthelawprohibitsistheabsolutelackofopportunitytobeheard

There is no denial of due process where theemployer was duly represented by counsel andgiven sufficient opportunity to be heard andpresent his evidence, nor where the employer’sfailure to be heard was done due to the variouspostponements granted to it or to his repeatedfailuretoappearduringthehearings

• Inhibitiono Labor Arbiter may voluntarily inhibit himself from the

resolutionofacaseandshallsostate inwritingthe legaljustifications therefor. Uponmotion of a party, either onthegroundofrelationshipwithinthefourthcivildegreeofconsanguinity or affinity with the adverse party orcounsel, oronquestionof impartiality, theLaborArbitermayinhibithimselffromfurtherhearinganddecidingthecase. Suchmotion shall be resolved within five (5) daysfrom the filing thereof. An order denying or granting amotionforinhibitionisinappealable.

• Dueprocessincludesimpartialityoftheappealbodyo Officer who reviews a case on appeal should not be the

samepersonwhosedecisionisthesubjectofreview6. Suspensionofproceedings

• Rubberworld(Phil.)Inc.v.NLRCo WhenacorporationpetitionstheSECforadeclarationof

suspensionofpaymentsandthat it isbeingrehabilitated,all actions for claims against such corporation pending

beforeanycourt,tribunal,boardorbodyshallbesuspendedaccordingly.

o Such suspension of proceedings applies even to complaintsfor illegal dismissal, unfair labor practice, damages andpaymentofseparationpay,retirementbenefits,13thmonthpay and SIL which employees have filed with and wereawaitingresolutionbyalaborarbiter.

7. Filingandserviceofpleadingsanddecisions• All pleadings in connection with the case shall be filed with the

appropriatedocketingunitof theRegionalArbitrationBranchof theCommission,asthecasemaybe

• Partyfilingthepleadingshallservetheopposingpartieswithacopythereofand itssupportingdocuments in themannerprovided in theNLRCRuleswithproofofservicethereof

• Serviceofnoticeandresolutionso Noticesorsummonsandcopiesoforders,shallbeserved

onthepartiestothecasepersonallybytheBailiffordulyauthorized public officer within three (3) days fromreceipt thereof or by registered mail; Provided that inspecial circumstances, service of summons may beeffectedinaccordancewiththepertinentprovisionsoftheRulesofCourt;Providedfurther,thatincasesofdecisionsand final awards, copies thereof shall be served on bothparties and their counsel or representative by registeredmail; Provided further that in cases where a party to acaseorhis counselon recordpersonally seeks serviceofthe decision upon inquiry thereon, service to said partyshall be deemed effected upon actual receipt thereof;Provided finally, that where parties are so numerous,serviceshallbemadeoncounselanduponsuchnumberofcomplainants, as may be practicable, which shall beconsideredsubstantialcompliancewithArticle224(a)oftheLaborCode, asamended.Forpurposesof appeal, theperiod shall be counted from receipt of such decisions,resolutions,orordersbythecounselorrepresentativeofrecord.

o TheBailiff or officer serving thenotice, order, resolutionor decision shall submit his return within two (2) daysfromdate of service thereof, stating legibly in his returnhisname,thenamesofthepersonsservedandthedateofreceipt, which return shall be immediately attached andshallformpartoftherecordsofthecase.Incaseofserviceby registeredmail, theBailiff orofficer shallwrite in thereturn, the names of persons served and the date ofmailing of the resolution or decision. If no service waseffected,theserviceofficershallstatethereasonthereforinthereturn.

• Proofandcompletenessofserviceo The return is prima facie proof of the facts indicated

therein. Service by registered mail is complete upon


receiptbytheaddresseeorhisagent;butiftheaddresseefails to claimhismail from thepostofficewithin five (5)days from the date of first notice of the postmaster,serviceshalltakeeffectaftersuchtime.

o Section 4, Rule 13 of the Rules of Court which issuppletory provides: Service of the papersmay bemadeby delivering personally a copy to the party or hisattorney,orbyleavingitinhisofficewithhisclerkorwithapersonhavingchargethereof.Ifnopersonisfoundinhisoffice,orhisofficeisnotknown,thenbyleavingthecopy,between the hours of 8 in the morning and 6 in theevening, at the party’s or attorney’s residence, if known,withapersonofsufficientdiscretiontoreceivethesame.

8. Resolutionofdoubtinlaworevidence• Doubtastotheinterpretationoflaborlawsandregulationshastobe

resolvedinfavoroflaboro Thislegalpreceptextendstodoubtsabouttheevidenceof

thedisputants• Nicariov.NLRC,MancaoSupermarket

o Inher claim forovertimepay,petitioneralleged that sheworked12hoursaday.Companyreliedonherdailytimerecords (DTRs) to allege that sheonlyworked8hours aday.NLRCsidedwiththecompany

o NLRC’s reliance on theDTRs submitted by the employer ismisplaced. The time records were unreliable because theoriginalswerenotpresented,companymakesitappearthatemployee has 2 hour rest period, and that all entries aresuspiciouslyconsistent.Ifdoubtsexistbetweentheevidencepresented by the employer and the employee, the scales ofjustice must be tilted in favor of the latter. Doubtsreasonablyarisingfromevidence,orintheinterpretationofagreementsandwritingshouldberesolvedinthe laborer’sfavor.

9. Decisionoflaborarbiter• The Labor Arbiter shall render his decision within thirty (30)

calendardays,withoutextension,afterthesubmissionofthecasebythe parties for decision, even in the absence of stenographic notes;Provided however, that cases involving overseas Filipino workersshallbedecidedwithinninety(90)calendardaysafterthefilingofthecomplaintwhichshallcommencetorunuponacquisitionbytheLaborArbiterofjurisdictionovertherespondents

• Contentsofdecisionso The decisions and orders of the Labor Arbiter shall be

clear and concise and shall include a brief statement ofthe:

Factsofthecase; Issuesinvolved; Applicablelawsorrules; Donclusionsandthereasonstherefor; Specificremedyorreliefgranted.

o In cases involving monetary awards, the decisions ororders of the Labor Arbiter shall contain the amountawarded.

o IncasethedecisionoftheLaborArbiterincludesanorderofreinstatement,itshalllikewisecontain:

Statement that the reinstatement aspect isimmediatelyexecutory;and

Directive for the employer to submit a report ofcompliance within ten (10) calendar days fromreceiptofthesaiddecision.

• No motions for reconsideration and petitions for relief fromjudgment

o Nomotionsforreconsiderationorpetitionsforrelieffromjudgment of any decision, resolution or order of a LaborArbitershallbeallowed.However,whenonesuchmotionforreconsiderationisfiled,itshallbetreatedasanappealprovided that it complies with the requirements forperfecting an appeal. In the case of a petition for relieffromjudgment,theLaborArbitershallelevatethecasetotheCommissionfordisposition.

Article222.Appearancesandfees.

1. Appearanceofnonlawyers• A non‐lawyer may appear before the Commission or Labor Arbiter

onlyif:o Herepresentshimselfaspartytothecaseo He represents a legitimate labor organization, as defined

underArticle212and242oftheLaborCode,asamended,whichisapartytothecase:Provided,thathepresents:

Acertification from theBureauofLaborRelations(BLR) or Regional Office of the Department ofLabor and Employment attesting that theorganization he represents is duly registered andlisted in the roster of legitimate labororganizations;

Averifiedcertificationissuedbythesecretaryandattestedtobythepresidentofthesaidorganizationstating that he is authorized to represent the saidorganizationinthesaidcase;and

Acopyoftheresolutionoftheboardofdirectorsofthesaidorganizationgrantinghimsuchauthority

o Herepresentsamemberormembersofalegitimatelabororganization that is existing within the employer'sestablishment,whoarepartiestothecase:Provided,thathepresents:

A verified certification attesting that he isauthorized by such member or members torepresenttheminthecase;and


Averifiedcertificationissuedbythesecretaryandattestedtobythepresidentofthesaidorganizationstating that the person or persons he isrepresenting are members of their organizationwhichisexistingintheemployer'sestablishment

o He is a duly‐accredited member of any legal aid officerecognizedbytheDepartmentofJusticeorIntegratedBarofthePhilippines:Provided,thathe

Presentsproofofhisaccreditation;and Representsapartytothecase

o He is the owner or president of a corporation orestablishmentwhichisapartytothecase:Provided,thathepresents:

A verified certification attesting that he isauthorized to represent said corporation orestablishment;and

Acopyoftheresolutionoftheboardofdirectorsofsaid corporation, or other similar resolution orinstrument issued by said establishment, grantinghimsuchauthority

2. Changeoflawyer• No substitution of attorney will be allowed unless the following

requisitesconcur:o Theremustbefiledawrittenapplicationforsubstitutiono Theremustbefiledthewrittenconsentoftheclienttothe

substitutiono Theremustbefiledthewrittenconsentoftheattorneyto

besubstituted,ifsuchconsentcanbeobtainedo In case such written consent cannot be procured, there

mustbefiledwiththeapplicationforsubstitution,proofofthe service of notice of such motion in the mannerrequiredbytherules,ontheattorneytobesubstituted

• Under the NLRC Rules any change or withdrawal of counsel orrepresentativeshallbemadeinaccordancewiththeRulesofCourt

3. Authoritytobindparty• Attorneyshaveauthoritytobindclients inallmannersofprocedure;

but thecannot,withouta specialpowerofattorneyexpress consent,enterintoacompromiseagreementwiththeopposingpartyinfullorpartialdischargeofaclient’sclaim

o KanlaonConstructionCov.NLRC Laborersofaconstructioncompanyfiledclaimsfor

wages and 13th month pay. Company engineersadmittedthecompany’sliabilityandagreedtopaythemoneyclaims.

Appearanceonbehalfofthecompanyrequiredproofofauthorization.Theengineersdidnothave this. Itwas incumbentuponthe laborarbiters toascertainthis authority. Absent this authority, whateverstatements and declarations made by the engineer

before the labor arbiters could not bind thepetitionercompany.

4. Attorney’sfee• Labor Code prohibits payment of attorney’s fees only when it is

effected through forced contributions fromworkers from their ownfundsasdistinguishedfromtheunionfunds.

o Theobligationtopaybelongstotheunionandcannotbeshuntedtotheworkersastheirdirectresponsibility

• Any agreement to the contrary regarding such payment is null andvoid

• Negotiationfeeo CebuInstituteofTechnologyv.Ople

Thefirstmatterraisedforclarificationinthiscaseconcerns the award of 10% of the backwagespayable to all members of the bargaining unit asnegotiation fee which covers attorney’s fees,agencyfeeandthelike.

SCsidedwiththeschool.Thewhole90%economicpackageawardedbytheNLRCcan’tbethebasisforcomputingthenegotiationfees.Thelawhasalreadyprovided for theminimumpercentageof tuition feeincreases to be allotted for teachers and otherpersonnel. It follows that only the amount beyondthat mandated by law should be subject tonegotiation fees and attorney’s fees for the simplereasonthatitisonlythiswhichtheemployeeshadtobargainfor

• ForservicesrenderedbyUnionOfficerso Labor Code prohibits the imposition on any individual

union member of attorney’s fees, negotiation fees andsimilar charges arising from negotiation of a bargainingagreement

Collection of the special assessment partly for thepayment of services rendered by union officers,consultantsandotherssimilarcharges

• Attorney’sfeecollectibleonlyfromunionfundso Article222(b)allowsattorney’sfeestobechargedagainst

“unionfunds”

ChapterIII:Appeal

Article223.Appeal.

1. Nomotionforreconsiderationoflaborarbiter’sdecision• IfanyofthegroundsmentionedinArticle223exists,thelosingparty

mayappeal theLaborArbiter’sdecision to theNLRCwithin10daysfromreceiptofthedecision


• No motion for reconsideration need be filed; NLRC Rules does notallowaMRofalaborarbiter’sdecision

• BUTinappealinganNLRCdecision,itmaybeelevatedtotheCAbutaMRshouldfirstbefiled

• Finaldecisionscannotbeamendedo If not appealed on time, the Labor Arbiter’s decision

becomesfinalandcannotbeamended2. Periodtoappealfromlaborarbiter

• Tencalendardayso Aperiodof10daysfromreceiptofanyorderisgrantedto

eitherortobothpartiesinvolvedtoappealtotheNLRCo 10 days refer to calendar days and not working days.

Hence, Saturdays, Sundaysand legalholidaysareNOT tobeexcluded(VirjenShippingv.NLRC)

o Vir‐Jen ruling can’t be applied prior to its promulgation,July20,1982

• Underthe2005NLRCRulesofProcedureo Decisions,resolutionsorordersoftheLaborArbitershall

befinalandexecutoryunlessappealedtotheCommissionbyanyorbothpartieswithinten(10)calendardaysfromreceipt thereof; and in case of decisions, resolutions ororders of the Regional Director of the Department ofLabor and Employment pursuant to Article 129 of theLabor Code, within five (5) calendar days from receiptthereof.Ifthe10thor5thday,asthecasemaybe,fallsonaSaturday,Sundayorholiday, the lastday toperfect theappeal shall be the first working day following suchSaturday,Sundayorholiday.

• Dateofreceiptbymailo Servicebyregisteredmail is completeeitheruponactual

receiptbytheaddresseeorattheendof5days,ifhedoesnot claim it within 5 days from the first notice of thepostmaster

Purpose: to place the date of receipt beyond thepowerofthepartybeingservedtodetermineathispleasure

• Failuretogivecopyofappealtoadversepartywithin10dayso Suchisnotfataliftheappelleewasnotprejudicedbythe

delayintheserviceofsaidcopyoftheappealo Dismissal of an appeal on purely technical grounds is

frownedupono In labor cases, non‐service of the copy of the appeal or

appeal memorandum to the adverse party is not ajurisdictional defect and does not justify the dismissal oftheappeal

• Noextensionofperiodwithinwhichtoperfectanappealshallbeallowed

• Periodsgenerallymandatory

o Mandatory because it is in the interest of labor that thelaw has commanded that labor cases be promptly if notperemptorilybedisposedof

o Only strong consideration of equity will lead the SC toallowanexceptiontotheproceduralruleintheinterestofsubstantialjustice

3. Groundsofappeal(exclusivelist)• Ifthereisprimafacieevidenceofabuseofdiscretiononthepartofthe

LaborArbiterorRegionalDirector• If the decision, resolution or order was secured through fraud or

coercion,includinggraftandcorruption• Ifmadepurelyonquestionoflaw• If serious errors in the findings of fact are raised which, if not

corrected,would cause graveor irreparabledamageor injury to theappellant

4. Wheretofileappeal• With the Regional Arbitration Branch or Regional Office where the

casewasheardanddecided5. Requisitesforperfectionofappeal

• Theappealshallbe:o Filedwithinthereglementaryperiodo Verifiedbytheappellanthimselfo Intheformofamemorandumofappealwhichshallstate

the grounds relied upon and the arguments in supportthereof, thereliefprayedfor,andwithastatementofthedate the appellant received the appealed decision,resolutionororder;

o Inthree(3)legiblytypewrittenorprintedcopies;ando Accompaniedby

Proofofpaymentoftherequiredappealfee; Postingofacashorsuretybond Certificateofnon‐forumshopping;and Proofofserviceupontheotherparties.

• Amerenoticeofappealwithoutcomplyingwith theother requisitesaforestatedshallnotstop therunningof theperiod forperfectinganappeal.

• The appellee may file with the Regional Arbitration Branch orRegional Office where the appeal was filed, his answer or reply toappellant'smemorandumof appeal, not later than ten (10) calendardaysfromreceiptthereof.Failureonthepartoftheappelleewhowasproperlyfurnishedwithacopyoftheappealtofilehisanswerorreplywithinthesaidperiodmaybeconstruedasawaiveronhisparttofilethesame.

• Subject to the provisions of Article 218 of the Labor Code, once theappeal is perfected in accordancewith these Rules, the Commissionshalllimititselftoreviewinganddecidingonlythespecificissuesthatwereelevatedonappeal.

6. Frivolousappeal• CommissionANDthe laborarbitermay imposereasonablepenalties,

includingfinesandcensures,uponapartyforfilingafrivolousappeal


• Unverifiedletternotproperappealo Garciav.NLRC

After receiving a copy of the decision, employerwrote the laborarbiter a letter expressingdismayoverthejudgment.Noappealwastaken.

Even assuming for the sake of argument that theletter isavalidnoticeofappeal, the lackofcashorsurety bond in a decision considering a monetaryaward is fatal to the appeal. The NLRC acted withgraveabuseofdiscretionandinexcessofjurisdictionintreatingtheletterasanappealfromthejudgment

7. Paymentofappealfees• Appellant shall pay an appeal fee of 150Php to the Regional

ArbitrationBranchorRegionalofficeoforiginandtheofficialreceiptofsuchpaymentshallformpartoftherecordsofthecase

• Failure to pay confers a directory and not a mandatory power todismiss an appeal, and such powermust be exercisedwith a sounddiscretionandwithagreatdealofcircumspection

8. Appealbond;filingontime;exceptions• If decision of labor arbiter or regional director involves amonetary

award, an appeal by the employermaybe perfectedONLYupon thepostingof abond (either cashor suretyequivalent inamount to themonetaryaward,exclusiveofdamagesandattorney’sfees)

• Incaseofsuretybond,thesameshallbeissuedbyareputablebondingcompany duly accredited by the Commission or the Supreme Court,and shall be accompanied by original or certified true copies of thefollowing:

o A joint declaration under oath by the employer, hiscounsel,andthebondingcompany,attestingthatthebondposted is genuine, and shall be in effect until finaldispositionofthecase.

o Anindemnityagreementbetweentheemployer‐appellantandbondingcompany;

o Proof of security deposit or collateral securing the bond:provided, that a check shall not be considered as anacceptablesecurity;

o CertificateofauthorityfromtheInsuranceCommission;o Certificate of registration from the Securities and

ExchangeCommission;o Certificate of authority to transact surety business from

theOfficeofthePresident;o Certificate of accreditation and authority from the

SupremeCourt;ando Notarizedboardresolutionorsecretary'scertificate from

the bonding company showing its authorized signatoriesandtheirspecimensignatures.

• A cash or surety bond shall be valid and effective from the date ofdeposit or posting, until the case is finally decided, resolved orterminated, or the award satisfied. This condition shall be deemed

incorporatedinthetermsandconditionsofthesuretybond,andshallbebindingontheappellantsandthebondingcompany

• Theappellant shall furnish the appelleewith a certified true copyofthe said surety bond with all the above‐mentioned supportingdocuments. The appellee shall verify the regularity and genuinenessthereofandimmediatelyreportanyirregularitytotheCommission.

• UponverificationbytheCommissionthatthebondisirregularornotgenuine, the Commission shall cause the immediate dismissal of theappeal, and censure or cite in contempt the responsible parties andtheircounsels,orsubjectthemtoreasonablefineorpenalty.

• Nomotiontoreducebondshallbeentertainedexceptonmeritoriousgrounds,andonlyuponthepostingofabondinareasonableamountinrelationtothemonetaryaward.

• Themere filing of amotion to reduce bondwithout complyingwiththerequisites intheprecedingparagraphsshallnotstoptherunningoftheperiodtoperfectanappeal.

• Previous SC rulings, as in the Rosewood case, Court ruled that arelaxation of the appeal bond requirement could be justified bysubstantialcompliancewiththerule

• BUT the more recent SC cases require strict observance of thereglementaryperiod

• SameerOverseasPlacementAgencyInc.v.Levantino,etalo Employee complained of illegal dismissal, among others.

Laborarbiterupheldthedismissalbutgrantedamonetaryaward.Sameer, theagencyappealed.NLRCdismissed forfailure to perfect the appeal within 10 day period;apparently,didnotfileanappealbondontime

o Appeal bond requirement is not merely procedural butjurisdictional, for without it, the NLRC does not acquirejurisdiction over the appeal. NLRC did not acquirejurisdiction because he filed the bond 6 days AFTER thelapseofthe10days.

• MotiontoreducebondunderNLRCruleso Motiontoreduceamountmaybeentertainedo No motion shall be entertained unless on meritorious

groundsandONLYuponpostingof abond in reasonableamountinrelationtothemonetaryaward

o Merefilingofthemotiontoreducebondwithoutfilingofabindshallnotstoptherunningoftheperiodtoperfectanappeal

• Nobond,noappealperfectedo BorjaEstate,etal.v.SpousesR.Ballad

“Onlyuponthepostingofacashorsuretybond” The word ONLY makes it perfectly clear that

lawmakers intended by the posting of a cash orsurety bond by the employer to be the exclusivemeans by which an employer’s appeal may beconsidered completed. The law does not requireoutright payment, but only posting of a bond toensurethattheawardwillbeeventuallypaidshould


the appeal fail. What petitioners have to pay is amoderate and reasonable sum for the premium ofsuchbond

Perfectionof anappeal in themannerdescribedbylawismandatoryandjurisdictional

(Relaxing the 10 day period) Situations whereCourtallowedtardyappeals:

Presence of any justifying circumstancerecognizedbylaw,suchasfraud,accident,mistake or excusable negligence, properlyvestedthejudgewithdiscretiontoapproveoradmitanappealfiledoutoftime

Where on equitable grounds, a bleatedappeal was allowed as the questioneddecision was served directly uponpetitioner insteadofher counsel of recordwhoatthetimewasalreadydead

Wherethecounselreliedonthefootnoteofthe notice of the decision of the laborarbiter that the aggrieved party mayappeal…within10workingdays

In order to prevent miscarriage of justiceor unjust enrichment such as where thetardy appeal is from a decision grantingseparationpaywhichwasalreadygrantedinanearlierfinaldecision

Where there are special circumstances inthe case combinedwith its legalmerits ortheamountandtheissueinvolved

• No distinction between “filing “ and “perfection” of appeal; StarAngeldecision,not“venerable”

o StarAngelruling:appealmustbefiledwithin10daysbutmaybeperfectedafterthatperiod

Aboverulingismerelyobiter! Azucena:forgetStarAngel!

o ComputerInnovationsCenter,etal.v.NLRC Petitioners invoke Star Angel that there is a

distinctionbetween filingwithin the reglementaryperiodandperfectionoftheappeal

Inthiscase,themotionforreductionofappealbondwas filedonlyonthe10thdayandcanno longerbedeemedtohavestayedtheappeal

The reference in Star Angel to the distinctionbetweenperiodto file theappealandtoperfect theappeal has beenmade only once by the SC; thus, ithas not acquired the seen of venerability. Besides,distinctionisnotparticularlyevident

• Amountofappealbondexcludesdamageso Bond exclusive ofmoral and exemplary damages aswell

asattorney’sfees

• Ispropertybondacceptable?o Case where labor employer posted a real estate bond

becauseitwasnotinapositiontopostacashbondo Court allowed such because the requirement should be

givenaliberalinterpretation• Bondacceptedconditionally

o If acceptedconditionallyby theNLRC, then the failure tofulfill those conditionson time is tantamount toa failuretopostthebondrequiredbylaw

• Supersedeasbondo There isnoproceduralerror thatmaybe imputed to the

arbiter in requiring the employer to post supersedeasbondasaconditionforthestayofimmediateexecutionofthe judgment against, AFTER the appeal had been takenfromsaidjudgment

9. Recordsandtransmittal• Therecordsofacaseshallhaveacorrespondingindexofitscontents

whichshallincludethefollowingo Theoriginalcopyofthecomplaint;o Otherpleadingsandmotions;o Minutes of the proceedings, notices, transcripts of

stenographicnotes,ifany;o Decisions, orders, and resolutions as well as proof of

servicethereof,ifavailable;o Thecomputationoftheaward;o Memorandumofappealandthereplyoranswerthereto,if

any,andproofofservice,ifavailable;o Officialreceiptoftheappealfee;ando Theappealbond,ifany.

• Therecordsshallbechronologicallyarrangedandpagedprominently.• Withinforty‐eight(48)hoursafterthefilingoftheappeal,therecords

ofthecaseshallbetransmittedbytheRegionalArbitrationBranchorofficeoforigintotheCommission.

10. Effectofappealofarbiter’sdecision• Withoutprejudice to immediatereinstatementpendingappealunder

Section 6 of Rule XI, once an appeal is filed, the Labor Arbiter losesjurisdictionoverthecase.Allpleadingsandmotionspertainingtotheappealed case shall thereafter be addressed to and filed with theCommission

• ExecutionorReinstatementpendingappealo In case the decision includes an order of reinstatement,

andtheemployerdisobeysthedirectiveunderthesecondparagraphof Section14ofRuleVor refuses to reinstatethe dismissed employee, the Labor Arbiter shallimmediatelyissuewritofexecution,evenpendingappeal,directing the employer to immediately reinstate thedismissed employee either physically or in the payroll,and topay theaccruedsalariesasaconsequenceofsuchreinstatementattheratespecifiedinthedecision.


o The Sheriff shall serve the writ of execution upon theemployeroranyotherpersonrequiredbylawtoobeythesame. If he disobeys the writ, such employer or personmaybecitedforcontemptinaccordancewithRuleIX.

• Effectofperfectionofappealonexecutiono Perfection of an appeal shall stay the execution of the

decisionof theLaborArbiteronappeal,exceptexecutionforreinstatementpendingappeal

11. Frivolousordilatoryappeals• No appeal from an interlocutory order shall be entertained. To

discourage frivolous or dilatory appeals, including those taken frominterlocutoryorders,theCommissionmaycensureorciteincontemptthe erring parties and their counsels, or subject them to reasonablefineorpenalty.

12. Appealsfromdecisionsofotheragencies• The Rules provided herein governing appeals from the decisions or

orders of Labor Arbiters shall apply to appeals to the CommissionfromdecisionsorordersoftheotherofficesoragenciesappealabletotheCommissionaccordingtolaw.

13. Proceedingsbeforethecommission• Commission En Banc.‐ The Commission shall sit en banc only for

purposesofpromulgatingrulesandregulationsgoverningthehearinganddispositionofcasesbefore itsDivisionsandRegionalArbitrationBranches, and for the formulation of policies affecting itsadministration and operations. It may, on temporary or emergencybasis,allowcaseswithinthejurisdictionofanyDivisiontobeheardbyanyotherDivisionwhosedocketallows theadditionalworkloadandsuch transfer will not expose litigants to unnecessary additionalexpense.

• Divisions.‐ Unless otherwise provided by law, the Commission shallexercise its adjudicatory and all other powers, functions and dutiesthrough its five (5) Divisions. Each Division shall consist of onemember from the public sector who shall act as the PresidingCommissionerandonemembereachfromtheworkersandemployerssectors,respectively.

o The presence of at least two (2) Commissioners of aDivisionshallconstituteaquorum.Theconcurrenceoftwo(2)CommissionersofaDivisionshallbenecessaryforthepronouncementofajudgmentorresolution.

o Whenever the requiredmembership in a Division is notcomplete and the concurrenceof two (2)Commissionerstoarriveata judgmentorresolutioncannotbeobtained,the Chairman shall designate such number of additionalCommissioners from the other Divisions as may benecessaryfromthesamesector.

o Role of Chairman in the Division. ‐ The Chairman of theCommissionmayconveneandpresideoverthesessionofany Division to consider any case pending before it andparticipate in its deliberations, if in his judgment, hispresence therein will best serve the interests of labor

justice.Heshallnothowever,participate inthevotingbythe Division, except when he is acting as PresidingCommissioneroftheDivisionintheabsenceoftheregularPresidingCommissioner.

• Issuesonappealo Commission shall limit itself to reviewing those issues

whichareraisedonappealo Those which are not raised on appeal shall be final and

executory• Technicalrulesnotbinding

o InanyproceedingbeforetheCommission,thepartiesmayberepresentedbylegalcounselbutitshallbethedutyofthe Chairman, any Presiding Commissioner orCommissioner to exercise complete control of theproceedingsatallstages

• EvidencesubmittedonappealtoNLRCo RuleisthatNLRCisnotprecludedfromreceivingevidence

onappealastechnicalrulesofevidencearenotbindinginlaborcases

o PhilippineTelegraphandTelephoneCorporationv.NLRC On appeal, employer submitted evidence showing

paymenttotheemployeeofholidaypay,etc.NLRCrejectedthesame

The belated presentation of the evidencenothwithstanding, NLRC should have consideredthem just the same. Technical rules of evidence arenotbindinginlaborcases.

• Conciliation/Mediationo EvenwhenthecaseiselevatedonappealtotheNLRC,the

Commission shall exert all efforts towards amicablesettlementofthelabordispute.

o Settlement of cases on appeal, to be valid and bindingbetween the parties, shall be made before theCommissionerorhisauthorizedrepresentative

• Consultationo The conclusions of a Division on any case or matter

submitted to it for decision shall be reached inconsultationbefore the case is assigned to amember forthewriting of the opinion. It shall bemandatory for theDivision to meet for the purpose of the consultationordainedherein.

o A certification to this effect signed by the PresidingCommissioner of theDivision shall be issued and a copythereofattachedtotherecordofthecaseandservedupontheparties.

• DissentingOpiniono ShouldanymemberofaDivisionindicatehisintentionto

writeadissentingopinion,hemayfilethesamewithintheperiod prescribed for deciding or resolving the appeal;


otherwise, such written dissenting opinion shall not beconsideredpartoftherecordsofthecase.

• Inhibitiono NomotiontoinhibittheentireDivisionoftheCommission

shall be entertained. However, any Commissioner mayinhibit himself from the consideration and resolution ofanycaseormatterbeforetheDivisionandshallsostateinwriting the legal or justifiable grounds therefor. In theevent that a member inhibits himself, the case shall beraffledbytheExecutiveClerkorDeputyExecutiveClerktoeither of the two (2) remaining Commissioners. In casetwo(2)CommissionersinaDivisioninhibitthemselvesina case or matter before it, the Chairman shall, as far aspracticable, appoint two (2) Commissioners from otherDivisions representing the sector of the Commissionerswhoinhibitedthemselves

14. Formofdecision,resolutionandorder• The decision, resolution and order of the Commission shall state

clearly and distinctly the findings of facts, issues, and conclusions oflawonwhichitisbased,andthereliefgranted,ifany.Ifthedecision,resolutionororderinvolvesmonetaryawards,thesameshallcontainthespecificamountawardedasofthedatethedecisionisrendered

• Commission shall decide all cases within 20 calendar days fromreceiptoftheansweroftheappellee

• Decision of Commission shall be final and executory after 10 daysfromreceiptbytheparties

• AnyenforcementagencymaybedeputizedbytheSecretaryofLaborortheCommissionintheenforcementofdecision,awards,orders

• Reasonedreversalo It stands to reason thatNLRC should state an acceptable

causeforsettingasidelaboraribter’sfindingso Itwouldotherwisebeawhimsical,capricious,oppressive,

unreasonable exercise of quasi‐judicial prerogative,subject to invalidation by the extraordinary writ ofcertiorari

• Extendedmeaningof“appeal”underArticle223;NLRCmayissuewritofCertiorari

o TriadSecurityv.Ortega Forapetitionforcertioraritoprosper,requisites–

Writ is directed against a tribunal, board,or officer exercising judicial or quasijudicialfunctions

Tribunal, board, officer has actedwithoutor in excess of jurisdiction or with graveabuse of discretion amounting to lack orexcessofjurisdiction

Thereisnoappealoranyplainspeedyandadequateremedyintheordinarycourseoflaw

AbuseofdiscretionisadmittedlywithintheabmitofcertiorarianditsgrantthereoftotheNLRCindicatesthelawmakers’intentiontobroadenthemeaningofappealasthattermisusedintheCode

Being the administrative agency tasked with thereviewoflaborcases,theNLRCisinabetterpositionto determine whether grounds for certiorari aremeritorious

Hence, NLRC has authority to rule on a matterinvolving grave abuse of discretion that may becommittedbyalaborarbiter

15. FinalityofdecisionoftheCommissionandentryoffinaljudgment• Finality of theDecisions,ResolutionsorOrders of theCommission. ‐

ExceptasprovidedinSection9ofRuleX,thedecisions,resolutionsorordersof theCommission shallbecome final andexecutoryafter ten(10)calendardaysfromreceiptthereofbytheparties.

• EntryofJudgment.‐Upontheexpirationoftheten(10)calendardayperiod,thedecision,resolution,orordershallbeenteredinabookofentriesofjudgment.

• The Executive Clerk or Deputy Executive Clerk shall consider thedecision, resolution or order as final and executory after sixty (60)calendar days from date of mailing in the absence of return cards,certificationsfromthepostoffice,orotherproofofservicetoparties.

16. Motionsforreconsideration• Motionforreconsiderationofanydecision,resolutionororderofthe

Commissionshallnotbeentertainedexceptwhenbasedonpalpableor patent errors; provided that the motion is under oath and filedwithin ten (10) calendardays from receipt of decision, resolutionororder, with proof of service that a copy of the same has beenfurnished, within the reglementary period, the adverse party; andprovidedfurther,thatonlyonesuchmotionfromthesamepartyshallbeentertained.

• Should amotion for reconsideration be entertained pursuant to thissection,theresolutionshallbeexecutoryafterten(10)calendardaysfromreceiptthereof.

• NLRCrulesdoesnotallowsecondMR• Supplemental MR filed outside the 10 day appeal period cannot be

entertained• Partywhofailedtoappealontimefromdecisionoflaborarbiter

maystillfileMRofNLRCdecisiono Sadolv.PilipinasKao,Inc.

SadolwasemployedbyPilipinasKao,Inc.(PKI).Heclaimshewassummarilydismissedandthusfiledacomplaint for reinstatement and backwages.Private respondents was ordered by the laborarbitertopayseparationpay

NLRC modified the decision, orderedreinstatement. Appeal of PKI was dismissed forbeing filed out of time. PKI received a copyof the


decision of the NLRC thereafter. MR was filed.NLRCdismissedthecase

Party who failed to appeal from a decision of theLaborArbiter to theNLRC can still participate inaseparateappealtimelyfiledbytheadversepartybyaMRofthedecisionoftheNLRConappeal

Havinglosttherighttoappeal,canPKIfileaMRofsaiddecision?Yes.Rulesof technicalitymustyieldtothebroaderinterestofjustice

17. Certifiedcases18. AppealfromtheNLRC

• ReviewbyCertioraribytheCA;theSt.Martincaseo St.MartinFuneralHomesv.NLRC

Issueinvolvedwaswhetherornottherespondentwasaemployeeofthepetitioner

SC did not answer the question and referred themattertotheCA

CourtnotedthatthepresentlawsprovidenoappealsfromNLRCdecisions.RA7902’spurposewastoeasetheworkloadoftheSCbythetransferofsomeofitsburdenofreviewoffactualissuestotheCA

AppealsfromtheNLRCtotheSCareinterpretedandhereby declared to mean and refer to petitions forceritorariunderRule65.AllsuchpetitionsshouldbeinitiallyfiledintheCA.

Inanutshell– WaytoreviewNLRCdecisionsisthrough

SCAofcertiorariunderRule65 Jurisdiction over such action belongs to

boththeSCandCA;BUT In linewith the doctrine on hierarchy of

courts, the petition should be initiallypresented to the lower of the 2 courts,thatistheCA

• Whenandwheretofilepetitiono Filed not later than 60 days from notice of judgment,

order,orresolutionsoughttobeassailedo IncaseaMRorMNTistimelyfiled,whethersuchmotion

isrequiredornot,the60dayperiodshallbecountedfromnoticeofthedenialofsaidmotion

o 60dayperiodmustbecarefullyobservedo In such appeals, a certified copy of the questioned

judgment,finalorderorresolutionisrequired• EffectonNLRC’sdecision

o Petition for certiorari shall not stay the execution of theassaileddecisionoftheNLRCunlessaTROisissuedbytheCAorSC

• AppealtoLaborSecretaryabolished• Groundsforcertiorari

o SeerequisitesinTriadSecurityv.Ortega

o Party prays that judgment be rendered annulling ormodifying the proceedings, as the law, requires of suchtribunal,boardorofficer

• “Graveabuseofdiscretion”o By grave abuse of discretion is meant capricious and

whimsicalexerciseofjudgmentandisequivalenttolackofjurisdiction.Mereabuseofdiscretionisnotenough

o Powerisexercisedinanarbitraryordespoticmanner• SoleofficeofCertiorari

o Thesoleofficeofthewritofcertiorariisthecorrectionoferrors of jurisdiction including the commission of graveabuse of discretion amounting to lack or excess ofjurisdiction

• Notaslavetotechnicalruleso Reyesv.NLRC

Dismissedemployeewasorderedreinstatedbythelaborarbiter.NLRCreversed.Onappeal to theCA,CAdismissedonthegroundthathedidnotserveacopyofthepetitiontotheadverseparty

Liberal constructionwhen thedoing sowouldbe intheserviceofthedemandsofsubstantialjusticeandintheexerciseoftheequityjurisdictionofthisCourt

• AppealfromOSECtoCA;St.Martinrulingapplieso RulingsbytheOfficeoftheSecretary(OSEC)ofDOLEmay

beappealedtotheCA,nottheSCo Instances of possible appeal to the CA from the DOLE

Secretary: Under the rules governing local employment,

regarding the regional director’s decisions oncomplaintsofemploymentagencies

Compliance order in labor standards cases; ruleson disposition of labor standard cases; executiononoccupationalhealthandsafetycases

Denial of application for registration by BLR ofregistration of federation, national or industryunion,ortradeunioncenter

Cancellation of registration by BLR or RegionalOffice

Order of a med‐arbiter on a petition forcertification election or as to the results of acertificateelection

Decision of the BLR regarding administration ofunionfunds

Decisionsincasesofassumptionofjurisdiction• Exhaustion of administrative remedies; motion for

reconsiderationrequiredo Apetitionforcertiorarishouldbeprecededbyexhaustion

ofadministrativeremedies


o Whenanadministrativeremedyisprovidedbylaw,reliefmust be sought by first exhausting that remedy beforeseekingjudicialintervention.Failuretodosoisfatal

o Exceptions– Whentheissuesraisedisoneorpurelyoflaw Wherepublicinterestisinvolved Incasesofurgency Where special circumstances warrant immediate

ormoredirectaction Where the controverted act is patently illegal or

wasperformedwithoutjurisdictionorinexcessofjurisdiction

o Despite the jurisprudence insisting on exhaustion ofremedies,theDOLEdepartmentorderstates:ThedecisionoftheSecretaryshallbecomefinalandexecutoryafter10days from receipt thereof by the parties. No motion forreconsiderationofthedecisionshallbeentertained.

19. Certificateofnonforumshopping• Forumshopping is theactorattempt topresent thesamedispute to

differentadjudicators in thehopeof securinga favorable ruling. It isnotallowedbecauseitmocksthebasictenetthatonedisputeoughttobelitigatedonlyonceinonlyoneforum

• Failure to complywith the requirements concerning the certificationagainst forum shopping shall be cause for the dismissal of the casewithoutprejudice,unlessotherwiseprovided,uponmotionandafterhearing

• Certificationofnonforumshoppingmustbemadebypetitionero Santos,etalv.CA

Section 3, Rule 46 of the Rules of Court –certification must be made by petitioner himselfandnot by counsel since it is petitionerwho is inthe best position to know whether he haspreviouslycommencedanysimilaractioninvolvingthesameissuesinanyothertribunaloragency

20. DispositionbytheCA• Remand

o Where the appraisal of the NLRC and the labor arbiterlacks precision, giving rise to an ambiguity that lendsplausibility to a petition for certiorari, and there arematters regarding the quitclaim that still need to beclarified,equitycallsforaremandofthecasetotheNLRCforanascertainmentofgreaterdetailofthecircumstancessurroundingtheexecutionofthequitclaim

• Dismissalofappealo Even if appeal is stillpendingwithNLRC, if theSCorCA

finds that the appeal was filed late and it was patentlydilatory, it may be constrained to order the NLRC todismisstheappeal

• Findingsoffactsgenerallyfinal

o Findingsofadministrativeagenciesareaccordednotonlyrespectbutevenfinality

o If the findings of fact is unsupported by substantial andcredibleevidencedonotbindtheSCorCA,neitherwillituphold erroneous conclusions of theNLRCwhen it findsthatthelattercommittedgraveabuseofdiscretion

• Exceptionsre:SCisnotatrieroffactso When the findings are grounded entirely on speculation,

surmisesorconjectureso When the inferencemade ismanifestlymistaken, absurd

orimpossibleo Whenthereisgraveabuseofdiscretiono Whenthejudgmentisbasedonamisapprehensionoffactso Whenthefindingsoffactsareconflictingo When in making its findings the CA went beyond the

issues of the case, or its findings are contrary to theadmissionsofboththeappellantandtheappellee

o Whenthefindingsarecontrarytothetrialcourto When the findings are conclusions without citation of

specificevidenceonwhichtheyarebasedo When the facts set forth in the petition aswell as in the

petitioner’smainandreplybriefsarenotdisputedbytherespondent

o When the findings of fact are premised on the supposedabsenceofevidenceandcontradictedby theevidenceonrecord

o WhentheCAmanifestlyoverlookedcertainrelevantfactsnotdisputedbytheparties,which,ifproperlyconsideredwouldjustifyadifferentconclusion

• Examples:somefindingsoffactreversed21. FromCAtoSC:onlyquestionoflaw,Rule45

• ToappealtotheSC,theproperremedyisapetitionforreviewunderRule 45 of the Rules of Court. Such petition for review on certioraricanraiseonlyquestionsof law. Itmustbe filedwithin15days fromnoticeofthejudgmentorfinalorderorresolutionappealedfrom,orofthedenialofthepetitioner’sMNTorMR

• Where the appealing party failed to file the petition under Rule 45withinthesaid15days,thepetitionforcertiorari,inthenatureofSCA,isnotavailable

Article224.Executionofdecisions,ordersorawards.

1. Execution• Writ of execution is an order to carry out, to implement, a final

judgment• Writofexecutionmaybeissuedbythefollowingofficialsforthefinal

decisions,ordersorawardspromulgatedbythem:o SecretaryofLaborandEmployment


o DOLERegionalDirectoro NLRCo LaborArbitero Med‐Arbitero VoluntaryArbitrator;oro PanelofArbitrators

• Writofexecutionona judgmentmaybe issuedmotuproprioORonmotion of any interested party within 5 years from the date itbecomesfinalandexecutory

• Executionisdonethroughtheregularorspecialsheriffo But Secretary, Commission, any Labor Arbiter, the

RegionalDirector or theDirector of theBureau of LaborRelations in appropriate cases may deputize the PNP orany other law enforcement agencies in enforcement offinalawards,ordersordecisions

• Bothpartyandcounselshouldbenotifiedo In labor cases, both the party AND its counsel must be

dulyservedtheirseparatecopiesoftheorder,decision,orresolution, unlike in ordinary judicial proceedingswherenoticetocounselisdeemednoticetotheparty

• Article224isexecution,notappeal,procedureo Article 224 refers to the execution of “final decisions,

orders or awards” and requires the sheriff or a dulydeputizedofficertofurnishbothpartiesandtheircounselwithcopiesofthedecisionoraward

o Periodormannerof“appeal”fromtheNLRCtotheCAisgovernedbyRule65oftheRulesofCourt

2. Executionuponfinalityofdecisionororder• Awritofexecutionmaybeissuedmotupropriooronmotion,upona

decision or order that finally disposes of the action or proceedingsafterthepartiesandtheircounselsorauthorizedrepresentativesarefurnished with copies of the decision or order in accordance withtheseRules,butonlyaftertheexpirationoftheperiodtoappealifnoappeal has been filed, as shown by the certificate of finality. If anappealhasbeenfiled,awritofexecutionmaybeissuedwhenthereisanentryofjudgmentasprovidedforinSection14ofRuleVII.

• Nomotion forexecutionshallbeentertainednorawritofexecutionbeissuedunlesstheLaborArbiterortheCommissionisinpossessionoftherecordsofthecasewhichshall includeanentryofjudgmentifthe casewas appealed; except that, as provided for in Section 14 ofRule V and Section 6 of this Rule, and in those cases where partialexecution is allowedby law, theLaborArbiter shall retainduplicateoriginalcopiesofthedecisiontobeimplementedandproofofservicethereofforthepurposeofimmediateenforcement.

• Preexecutionconferenceo Within 2 working days from receipt of a motion for the

issuance of awrit of execution, and subject to Section 1,paragraph (b) of this Rule, the Labor Arbiter shallscheduleapre‐executionconferenceorhearing to thresh

out matters relevant to execution, including thecomputationoftheaward.

• Formandcontentsofawritofexecutiono IssuedinthenameoftheRepublicofthePhilippineso SignedbytheCommissionorLaborArbitero Requiring the Sheriff to execute the decision, order, or

awardoftheCommissionorLaborArbiter,ando Mustcontain thedispositiveportion thereof, theamount,

ifany,tobedemanded,andall lawfulfeestobecollectedfromthelosingpartyoranyotherpersonrequiredbylawtoobeythesame

• Computationduringexecutiono Where further computationof the award in thedecision,

resolutionororder isnecessaryduring the courseof theexecutionproceedings,nowritofexecutionshallbeissueduntil after the computation has been approved by theLabor Arbiter in an order issued after the parties havebeendulynotifiedandheardonthematter.

• Executionofmonetaryjudgmento Immediatepaymentondemand.‐TheSheriffshallenforce

a monetary judgment by demanding the immediatepaymentofthefullamountstatedinthewritofexecutionand all lawful fees from the losing party or any otherpersonrequiredbylawtoobeythesame.

o Intheeventoffailureorrefusalofthelosingpartytopaythejudgmentaward,theSheriffshallimmediatelyproceedagainst the cash deposit or surety bond posted by thelosingparty,ifany;

o Ifthebondingcompanyrefusestocomplywiththewritofexecution, then its president and officers or authorizedrepresentatives shall be cited for contempt, and thebonding company shall be barred from transactingbusinesswiththeCommission;

o Shouldthecashdepositorsuretybondbeinsufficient,orin case the surety bond cannot be proceeded against foranyreason, theSheriffshall,within5days fromdemand,execute the monetary judgment by levying on theproperty,personalandreal,ofthelosingpartynotexemptfrom execution, sufficient to cover the judgment award,whichmaybedisposedofforvalueatapublicauctiontothehighestbidder.

o ProceedsofexecutionshallbedepositedwiththeCashieroftheconcernedDivisionorRegionalArbitrationBranch,orwithanauthorizeddepositarybank.Wherepaymentismadeintheformofacheck,thesameshallbepayabletotheCommission.

• Enforcementofwritofexecutiono Inexecutingadecision,resolutionororder,theSheriff,or

other authorized officer acting as Sheriff of theCommission,shallbeguidedstrictlybytheseRules,andby


the Manual on Execution of Judgment, which shall formpartoftheseRules.

o In the absence of applicable rules, the Rules of Court, asamended,shallbeappliedinasuppletorymanner.

• Executionbymotionorbyindependentactiono Adecisionorordermaybeexecutedonmotionwithin5

yearsfromthedateitbecomesfinalandexecutory.o Afterthelapseofsuchperiod,thejudgmentshallbecome

dormant, and may only be enforced by an independentactionwithinaperiodof10yearsfromdateofitsfinality.

• Effectofpetitionforcertiorarionexecutiono Such petition with the CA or SC shall NOT stay the

execution of the assailed decision UNLESS a restrainingorderisissuedbysaidcourts

• Resolutionofmotiontoquasho MerefilingofamotiontoquashshallNOTstayexecution

proceedings.o Motion to quash shall be resolved by the Labor Arbiter

within 10working days from submission of saidmotionforresolution

3. Appealontheexecutionofdecision;superveningevents• GR:once judgmentbecomes final andexecutory, it canno longerbe

disturbed,alteredormodified• Exceptions:

o As in cases where, because of supervening events, itbecomes imperative, in the highest interest of justice, todirectitsmodification

• Although decision of the Labor Arbiter has become final, thecorrectnessof theexecutionof thedecisionmaybeappealed toandreviewedbytheNLRC

• Abbotv.NLRCo Finalityof judgmentbecomesafactuponthelapseofthe

reglementaryperiodofappealifnoappealisperfected.Insuchsituationtheprevailingpartisentitledasamatterofright to a writ of execution, and issuance thereof is aministerialduty,compellablebymandamus

o In this case, what is sought to be reviewed is not thedecisionbutthemannerofitsexecution

o Whileitistruethatthedecisionitselfahsbecomefinalandexecutory and so can no longer be challenged, there is noquestion either that it must be enforced and so can nolongerbechallenged,thereisnoquestioneitherthatitmustbe enforced in accordance with its terms and conditions.Any deviation therefrom can e the subject of a properappeal

o Inthiscase laborarbiter, inrecomputingawardintheoriginaldecisionraiseditfrom98,883.80to1,372,451.55

o Ruling:NLRChasauthoritytolookintothecorrectnessofthe execution of the decision and to consider thesuperveningevents thatmayaffectsuchexecution, like the

possibleoffsetofthepetitioners’advancesordebtsagainsttheirtotalclaim,theirdiscontinuancefromemploymentbyabandonment or resignation, and other relevantdevelopments

• PacificMills,Incv.NLRCo An initial case with the same parties had already been

dismissed by the SC and the entry of judgment havingbeen effected. NLRC computed the award and issuedpartialwritofexecution

o Pacific Mills filed a motion to stayexecution/reconsideration citing supervening events thataffected the computation of the award such as non‐considerationofthelengthofserviceofeachcomplainant,non‐consideration of wage exemptions, inclusion ofpayment of awards to a complainant who had beenrecalledtoactiveduty,etc

o NLRCdidnotstayexecutiono No question that the supervening events would certainly

affect the computation of the award in the decision of theNLRC. It is thedutyof theNLRC to consider the sameandinquire into the correctness of the execution, as suchsuperveningeventsmayaffectsuchexecution

4. Generalrule:RTCcannotissueinjunctionagainstNLRC• RegularcourtHASNOjurisdictiontohearanddecidequestionswhich

arise and are incidental to the enforcement of decisions, orders orawardsrenderedinlaborcasesbyappropriateofficersandtribunalsoftheDOLE

• Corollarily,anycontroversyintheexecutionofthejudgmentshallbereferredtothetribunalwhichissuedthewritofexecutionsinceithastheinherentpowertocontrolitsownprocessesinordertoenforceitsjudgmentsandorders

• WhileanactionfordamagesiswithinthejurisdictionofaRTC,itHASNOjurisdictiontoissueaTROinlaborcases

• Execution over property owned only by judgment debtor;remediesofthirdpartyclaimant;theYupangcocase

o Jurisprudence:poweroftheCourtortheNLRCtoexecuteits judgment extends only to properties unquestionablybelonging to the judgment debtor. Therefore if theproperty under levy does not belong to the judgmentdebtorintheNLRCcase,itcouldn’tbelevieduponbythesheriff. Even upon a mere prima facie showing ofownership by the third‐party claimant, if the third‐partyclaim does not arise involve nor grows out of, a labordispute,aseparateactionforinjunctivereliefagainstsuchlevymaybemaintainedincourt

o Revised Rules of NLRC/Sheriff’s manual: when a thirdpartyclaimsthepropertysubjectoftheexecutionandfilesanaffidavit, the laborarbitershallconductahearingandresolvethevalidityoftheclaim


This rule prescribes only the procedure to befollowedby thesheriff (or thearbiterorofficerofthe Commission) if the levied property is claimedbyanyotherparty

Itappliesonlytothesheriffandsuchotherofficers;andonlywhenthethird‐partyclaimantchoosestofile his claim with the labor arbiter or the NLRC(doesnotlimittheproceduretobefollowedbythethird‐partyclaimant)

o YupangcoCottonMills,Incv.CA A thirdpartywhose property has been levied upon

byasherifftoenforceadecisionagainstajudgmentdebtor isaffordedwithseveralalternativeremediesto protect its interests. He may avail himself ofalternative remedies cumulatively, and onewill notprecludethethirdpartyfromavailinghimselfoftheother alternative remedies in the event he failed intheremedyfirstavailedof

Thirdparty may avail himself of the followingalternativeremedies:

Filea thirdpartyclaimwith the sherifforthelaborarbiter

Ifthethirdpartyclaimisdenied,thethirdpartymayappealthedenialtotheNLRC

File a proper action with a competentcourttorecoverownershipofthepropertyillegallyseizedbythesheriff(§16,Rule39,RulesofCourt)

• RTCinjunctionagainstlaborarbiterorNLRC,whenallowedo YupangcoCottonMillsInc.v.CA

RTC where the reinvindicatory action is filed canissue an injunction or TRO against the executionorderedbyalaborarbiterortheNLRC

TheGR thatno court has thepower to interferebyinjunctionwiththejudgmentsordecreesofanothercourt with concurrent or coordinate jurisdictionpossessing equal power to grant injunctive reliefapplies ONLY when no thirdparty claimant isinvolved. When a thirdparty, or a stranger to theaction,assertsaclaimoverthepropertyleviedupon,the claimant may vindicate his claim by anindependent action in the proper civil court whichmaystoptheexecutionofthejudgmentonpropertynotbelongingtothejudgmentdebtor

Apersonotherthanthejudgmentdebtorwhoclaimsownership or right over the levied properties is notprecluded, however, from taking other legalremedies

• ThirdPartyclaim

o A third party claim shall be filedwithin 5 days from thelastdayofpostingorpublicationofthenoticeofexecutionsale;otherwisetheclaimshallbeforeverbarred.

o Thethirdpartyclaimantshallexecuteanaffidavitstatinghistitletothepropertyorrighttopossessionthereofwithsupporting evidence, and shall file the same with theSheriff and theCommission or LaborArbiterwho issuedthewritofexecution.

o Uponreceiptofthethirdpartyclaim,allproceedings,withrespect to the execution of the property subject of suchclaim,shallautomaticallybesuspended.

o The Labor Arbiter who issued the writ may require thethird party claimant to adduce additional evidence insupport of his third party claim and to post a cash orsurety bond equivalent to the amount of his claim, asprovided for inSection6ofRuleVI,withoutprejudice tothepostingbytheprevailingpartyofasupersedeasbondinanamountequivalenttothatpostedbythethirdpartyclaimant.

o TheLaborArbitershallresolvetheproprietyofsuchthirdparty claim within 10 working days from submission ofsaidclaimforresolution

• Simulatedsale,voidabinitioo Tanongonv.Samson

4 employees won in their illegal dismissal case.Labor arbiter issued writ of execution. Sherifflevied uon tanker purportedly belonging to theemployer. Tanongon filed a third‐party claim,alleging ownership of the tanker because it hadbeensoldtoher

Executioncanproceed. Actofemployerwasawaytoevadepaymentofthe

debt. The contract was simulated or fictitious andthus,voidabinitio.

A thirdparty claim on a levied property does notautomatically prevent the execution.When a thirdparty claim is filed, the sheriff is not bound toproceed with the levy unless the judgment creditorpostsanindemnitybond.Wherethebondisfiled,theremedy of the thirdparty is to file an independentreivindicatory action against the judgment creditoror the purchaser of the property at public auction.NLRCshouldnothaveautomaticallyliftedthelevyandrestrainedexecutionjustbecauseathird‐partyclaimhasbeenfiled.

Article225.Contemptpowersofthesecretaryoflabor.


TitleIII:BureauofLaborRelations

Article226.BureauofLaborRelations

1. BLRjurisdictionandfunctions• BLR no longer handles “all” labor‐management disputes; rather, its

functionsandjurisdictionarelargelyconfinedto–o Unionmatterso Collectivebargainingregistryo Laboreducation

• Themediationandconciliation,andarbitration functionsof theBLRarenowwiththeNCMB

• ExecutiveOrderNo.292orthe1987AdministrativeCode:TheBLRshall–

o Set policies, standards, and procedures on the registrationand supervision of legitimate labor union activities,includingdenialcancellationandrevocationoflaborpermits

o Setpolicies,standards,andproceduresrelatingtoCBAsandthe examination of financial records of accounts of labororganizationstodeterminecompliancewithrelevantlaws

o Provideproperorientationtoworkersontheirschemesandprojects for improvement of the standards of living ofworkersandtheirfamilies

2. Interunionandintrauniondisputes;DONo.4003• BLRhandlessuch• Inter‐union dispute – any conflict between and among legitimate

labor unions involving representation questions for purposes ofcollective bargaining or to any other conflict or dispute betweenlegitimatelaborunions

• Intra‐union dispute – any conflict between and among unionmembers,includinggrievancesarisingfromanyviolationoftherightsandconditionsofmembership,violationofordisagreementoveranyprovisionof theunion’s constitutionandby‐lawsordisputesarisingfromcharteringoraffiliationofunion

• RuleXIofDONo.4003includes:o Cancellationofunionregistrationo Auditofunionfundso Violation of union members’ rights and other disputes

betweenunionsorbetweenaunionanditsmembers• Complaint involving inter/intra‐union dispute may be filed by a

legitimatelabororganizationoritsmemberso Where issue involves membership, complaint shall be

supportedbyatleast30%ofmembership• (Secondcategory)Otherrelatedlaborrelationsdisputes–anyconflict

betweena laborunionand theemployerorany individual, entityorgroup that is not a labor organization orworkers’ association; suchdispute includecancellationofregistrationof labororganizationandinterpleader

o Complaint may be filed by a party‐in‐interest who is notnecessarilyaunionorunionmember

• If conflict involves an independent union, a chartered local, or aworker’sassociation,complaintshallbefiledwiththeDOLERegionalOffice

• DONo.4003o Coverstheentiresubjectoflaborrelations,exceptNLRCo Introduced new concepts such as union merger or

consolidationandmulti‐employerbargainingo SpecificobjectivesoftheOrder:

To simplify the formation and registration ofunions,especiallycharteredlocals

Tosimplifyandexpeditetheholdingofcertificationelections

To promote responsible unionism, particularly inadministrationoffunds

To authorize union merger, consolidation andchangeofname

ToauthorizederegistrationofCBAs• Effectofpendency

o The rights, relationships and obligations of the partieslitigants against each other and other parties‐in‐interestprior to the institution of the petition shall continue toremain during the pendency of the petition and until thedateof finalityof thedecisionrenderedtherein.Thereafter,the rights, relationships and obligations of the partieslitigants against each other and other parties‐in‐interestshallbegovernedbythedecisionsoordered.

o Thefilingorpendencyofany inter/intra‐uniondisputeandother related labor relations dispute is not a prejudicialquestion to any petition for certification election and shallnot be a ground for the dismissal of a petition forcertification election or suspension of proceedings forcertificationelection.

• Appealo Section 16. Appeal. ‐ The decision of the Med‐Arbiter and

RegionalDirectormaybeappealed to theBureaubyanyofthe partieswithin ten (10) days from receipt thereof, copyfurnished the opposing party. The decision of the BureauDirector in theexerciseofhis/heroriginal jurisdictionmaybeappealedtotheOfficeoftheSecretarybyanypartywithinthe same period, copy furnished the opposing party. Theappeal shall be verified under oath and shall consist of amemorandum of appeal specifically stating the groundsrelieduponbytheappellant,withsupportingargumentsandevidence.

o Section 17. Where to file appeal. ‐ The memorandum ofappealshallbefiledintheRegionalOfficeorBureauwherethe complaint or petition originated. Within twenty‐four(24)hours fromreceiptof thememorandumof appeal, the


Bureau or Regional Director shall cause the transmittalthereof together with the entire records of the case to theOfficeoftheSecretaryortheBureau,asthecasemaybe.

o Section 18. Finality of Decision. ‐Where no appeal is filedwithintheten‐dayperiod,theBureauandRegionalDirectororMed‐Arbiter,asthecasemaybe,shallenterthefinalityofthe decision in the records of the case and cause theimmediateimplementationthereof.

o Section 19. Period to reply. ‐ A reply to the appealmay befiled by any party to the complaint or petition within ten(10) days from receipt of thememorandum of appeal. Thereplyshallbe fileddirectlywith theBureauor theOfficeoftheSecretary,asthecasemaybe.

o Section20.Decisionof theBureau/Officeof theSecretary. ‐The Bureau Director or the Secretary,as the case may be,shall have twenty (20) days from receipt of the entirerecords of the casewithinwhich to decide the appeal. ThefilingofthememorandumofappealfromthedecisionoftheMed‐ArbiterorRegionalDirectorandBureauDirectorstaysthe implementationof the assaileddecision.TheBureauorOfficeoftheSecretarymaycall thepartiestoaclarificatoryhearinginaidofitsappellatejurisdiction.

o Section 21. Finality of Decision of Bureau/Office of theSecretary. ‐ The decision of theBureau or theOffice of theSecretary shall become final and executory after ten (10)daysfromreceiptthereofbytheparties,unlessamotionforits reconsideration is filed by any party thereinwithin thesameperiod.Onlyone(1)motionforreconsiderationofthedecision of theBureau or theOffice of the Secretary in theexerciseoftheirappellatejurisdictionshallbeallowed.

o Section22.Executionofdecision.‐ThedecisionoftheMed‐Arbiter andRegionalDirector shall automaticallybe stayedpendingappealwiththeBureau.ThedecisionoftheBureauin the exercise of its appellate jurisdiction shall beimmediately executory upon issuance of entry of finaljudgment. The decision of the Bureau in the exercise of itsoriginal jurisdiction shall automatically be stayed pendingappealwith theOffice of the Secretary. Thedecision of theOfficeoftheSecretaryshallbeimmediatelyexecutoryuponissuanceofentryoffinaljudgment.

3. ExtentofBLRAuthority• Describedasbroadandexpansive• Itmayholdareferendumelectionamongmembersofaunionforthe

purpose of determining whether or not they desire to be affiliatedwithafederation

• BUTithasnoauthoritytoorderareferendumamongunionmemberstodecidewhethertoexpelorsuspendunionofficers

• Neitherdoes it have authority to forwarda case to theTradeUnionCongressofthePhilippinesforarbitrationanddecision

4. Katarungangpambarangay,notapplicabletolabordisputes

• Because itappliesonly tocourtsof justiceandnot to laborrelationscommissionsorlaborarbitrators’offices

• Requiring conciliation of labor disputes before the barangay courtswoulddefeatthepurposesofthelaw

• Insteadof simplifyingproceedings,barangayconciliationwouldonlyduplicate the conciliation proceedings and unduly delay thedispositionofthelaborcase

Article227.Compromiseagreements.

1. Compromiseagreements• TheConstitutioncommandstheStatetopromotethepreferentialuse

of voluntary modes in settling disputes since the maintenance ofindustrialpeaceisajointresponsibilityofworkersandemployers

• Assistance of the BLR or the regional office of the DOLE in theexecution of a compromise settlement is generally a basicrequirement;withoutit,therecanbenovalidcompromisesettlement

• Hence, any compromise settlement, evenon labor standardmatters,agreed to by the parties with the assistance of the BLR or regionalofficeoftheDOLEisallowed.Resultingagreementislegallybinding!

• NLRCoranycourtshallnotassumejurisdictionoverissuesinvolvedtherein,except–

o In case of noncompliance with the compromise agreementor

o If there is prima facie evidence that the settlement wasobtainedthroughfraud,misrepresentationorcoercion

• Notethatnotallquitclaimsareperseinvalid,oragainstpublicpolicy,except–

o Wherethereisclearproofthatthewaiverwaswangledfromanunsuspectingorgullibleperson

o Where the terms of the settlement are unconscionable ontheirfaces

2. Formalrequirementsofcompromiseagreement• UnionofFilipinoWorkersv.NLRC

o Compromiseagreementsinvolvinglaborstandardscasesmust–

Bereducedtowriting SignedinthepresenceoftheRegionalDirectororhis

dulyauthorizedrepresentativeo Acknowledgementreceiptandundertaking≠signedo SPArequiredbeforeanagentcanbeauthorizedtoenterinto

acompromise3. Validcompromiseandquitclaim

• VelosoandLiguatonv.DOLE,Noah’sArkSugarCarrierso Complainants won case against employer for ULP, among

others. Employer filed a MR and recomputation of theamountawarded.


o While casewas pending, Veloso, through hiswife, signed aQuitclaimandReleaseinconsiderationofP25,000.LiguatonsignedonforP20,000

o Releaseswere impugned by petitioners, claiming that theyhadtosignbecauseofextremenecessity

o Held:ReleaseswereVALIDo The law lookswith disfavor upon quitclaims and releases by

employeeswhoareinveigledorpressuredintosigningthembyunscrupulous employers seeking to evade their legalresponsibilities. On the other hand, there are legitimatewaivers that represent a voluntary settlement of laborer'sclaims that should be respected by the courts as the lawbetweentheparties.

o "Direnecessity"isnotanacceptablegroundforannullingthereleases, especially since it has not been shown that theemployees had been forced to execute them. It has not evenbeen proven that the considerations for the quitclaims wereunconscionablylowandthatthepetitionershadbeentrickedinto accepting them. In any event, no deception has beenestablishedon thepart of thePrivate respondent thatwouldjustifytheannulmentofthePetitioners'quitclaims.

4. Compromiseshouldbedulyauthorized• Jag&HaggarJeansandSportswearCorp.v.NLRC

o Issue: W/N the compromise agreement entered into bycompany and Union (which constitute the majority) isbindingupontheothercomplainants(minority)?

o Minority claims that for the agreement to be binding uponthem,theremustbeaSPAortheirexpressconsent

o The waiver of reinstatement, like waivers of money claims,mustberegardedasapersonalrightwhichmustbeexercisedpersonallybytheworkersthemselves."Forawaiverthereoftobelegallyeffective,theindividualconsentorratificationoftheworkers or employees involved must be shown. Neither theofficers nor the majority of the union had any authority towaivetheaccruedrightspertainingtothedissentingminoritymembers.Themembersoftheunionneedtheprotectiveshieldof this doctrine not onlyvisavistheir employer but also, attimes,visavisthe management of their own union, and atother times even against their own imprudence orimpecuniousaess.

o Whenitcomestoindividualbenefitsaccruingtomembersofaunion from a favorable final judgment of any court, themembersthemselvesbecometherealpartiesininterestanditis for them, rather than for the union, to accept or rejectindividuallythefruitsoflitigation"

5. Rulingoncompromisesettlementssummarized• Labor,etalv.NLRCandGoldCity

o Compromise agreementwould be valid and binding only iftheagreementwasvoluntarilyenteredintoandrepresentsareasonablesettlementoftheclaims.

o MustbeexecutedwithassistanceoftheBLRortheRegionalOfficeoftheDOLE

• Evenwhena compromiseagreement is approvedbya laborarbiter,the judgment cannot have the effect of res judicata upon personswhoarenotpartiestothecompromiseagreement

6. Whentoeffectcompromise:finaldecision,negotiable?• A compromise agreement may be effected at any stage of the

proceedings and even when there is already a final executoryjudgment,exceptforvicesofconsentorforgery

• Magbanua,etalv.Uyo NLRC decision awarding wage differentials amounting to

1.4Mbecamefinalandexceutory.Butbeforeissuanceofwritof execution, parties reached a compromise. They got 40keachfromtheemployer

o Employeesstillprayedforwritofexecutiono Rights may be waived through a compromise agreement,

notwithstandingafinaljudgmentthathasalreadysettledtherights of the contracting parties. To be binding, thecompromise must be shown to have been voluntarily, freelyand intelligently executed by the parties, who had fullknowledge of the judgment. Furthermore, it must not becontrarytolaw,morals,goodcustomsandpublicpolicy.

o Thereisnojustificationtodisallowacompromiseagreement,solely because it was entered into after final judgment. Thevalidity of the agreement is determined by compliance withtherequisitesandprinciplesofcontracts,notbywhen itwasentered into. As provided by the law on contracts, a validcompromisemusthavethefollowingelements:(1)theconsentofthepartiestothecompromise,(2)anobjectcertainthatisthesubjectmatterofthecompromise,and(3)thecauseoftheobligationthatisestablished.

o In thepresent factualmilieu, compliancewith theelementsof a valid contract is not in issue. Petitioners do notchallenge the factual finding that they entered into acompromise agreement with respondent. There are noallegationsofvitiatedconsent.

• Absenceofcounselremediedo Thelaborarbiter’sabsencewhenthewaiverswereexecuted

was remediedupon compliancewith the aboveprocedure.The Court observes that the arbiter made searchingquestions during the pre‐execution conference to ascertainwhetherpetitionershadvoluntarilyandfreelyexecutedthewaivers. Likewise, there was evidence that they made anintelligent choice, considering that the contents of thewritten waivers had been explained to them. The laborarbiter’s absence when those waivers were executed doesnot,therefore,invalidatethem

o Even if contractedwithout the assistance of labor officials,compromise agreements between workers and their


employees remain valid and are still considered desirablemeansofsettlingdisputes

7. Optionswhencompromiseagreementisviolated• Shouldapartyfailorrefusetocomplywiththeagreement,theother

partycouldeither–o Enforcethecompromisebyawritofexecutiono Regard it as rescinded and so insist upon his original

demand

Article228.Indorsementofcasestolaborarbiters(RepealedbyBP230)

Article229.Issuanceofsubpoenas

Article230.AppointmentofBureauPersonnel

Article231.Registryofunionsandfileofcollectiveagreements

RegistryofunionsandCBAs

• Bureaushallkeeparegistryoflegitimatelabororganizations• BureaushallalsomaintainafileofallCBAsandotherrelatedagreements

o Parties shall submit, within 30 days from execution, copies of theirCBA directly to the BLR or the Regional Offices of the DOLE forregistration

o Registration of the CBA is NOT a requisite for its validity; once it isdulyenteredintoandsignedbytheparties,aCBAbecomeseffectiveas between the parties regardless of whether or not the same hasbeencertifiedbytheBLR

Article232.Prohibitiononcertificationelection.

Thecontractbarrule

• Contract‐barrulemeansthatwhileavalidandregisteredCBAissubsisting,theBureauisnotallowedtoholdanelectioncontestingthemajoritystatusoftheincumbentunion

o Existence of the CBA bars the holding of the inter‐union electoralcontest

• Electionislegallyallowedonlyduringthe“freedomperiod”whichreferstothelast60daysofthe5thyearoftheCBA

• Objectiveoftherule:minimizepolitickinguntilthepropertimecomes• In any case, it is the Med‐Arbiters in the DOLE regional offices that hear

petitionsforcertificationelection

Article233.Privilegedcommunication.

TitleIV:LaborOrganization

ChapterI:Registrationandcancellation

Article234.Requirementsofregistration.

Article234A.Charteringandcreationoflocalchapter.

Article235.Actiononapplication.

Article236.Denialofregistration;appeal.

Article237.Additionalrequirementsforfederationsornationalunions.

1. Labororganization;twobroadpurposes• Worker’s right to self‐organization is guaranteed under the

Constitution; includes the right to form, join or assist labororganizationforthepurposeofcollectivebargaining

• DefinitionsunderDONo.4003o Labororganization–anyunionorassociationofemployees

intheprivatesectorwhichexistsinwholeorinpartforthepurpose of collective bargaining, mutual aid, interest,cooperation,protection,orotherlawfulpurposes

Labororganizationisnotalwaysaunion;itmaybeanassociationofemployees

Purpose is not only nor necessarily collectivebargaining but also dealing with employersconcerningtermsandconditionsofemployment

o Legitimatelabororganization–anylabororganizationintheprivatesectorregisteredorreportedwiththeDepartment

o Union – any labor organization in the private sectororganized for collectivebargaining and for other legitimatepurposes

Noteveryunionislegitimate! Only those properly registered are considered as

anLLO Non‐registration does not mean it is illegitimate;

justmeansthatithasnolegalpersonalityo ExclusiveBargainingRepresentative–legitimatelaborunion

duly recognized or certified as the sole and exclusivebargainingrepresentativeoragentofalltheemployeesinabargainingunit

o Worker’sAssociation–associationofworkersorganizedforthe mutual aid and protection of its members or for anylegitimatepurposeotherthancollectivebargaining

o LegitimateWorkers’Association–anassociationofworkersorganized formutual aid and protection of itsmembers orfor any legitimate purpose other than collective bargainingregisteredwiththeDepartment


• Distinction between “collective bargaining” and “dealing withemployer”

o Purposeofalabororganizationistobargaincollectively(asa group) with the employer, and/or some other lawfulpurpose,i.e.,dealingwiththeemployer

Purposes deal with terms and conditions ofemployment

o Tobargain collectively is a right thatmaybeacquiredbyalabororganizationafterregisteringitselfwiththeDOLEandafterbeingrecognizedorcertifiedbyDOLEastheexclusivebargainingrepresentative(EBR)oftheemployees

o Dealing with the employer is a generic description ofinteraction between employer‐employees concerninggrievances, wages, work hours, and other terms andconditions of employment, even if the employees’ group isnotregisteredwiththeDOLE

NLRBdefinition:bilateralmechanismthatentailsapatternorpracticeinwhichagroupofemployees,over time, make proposals to management, andmanagement responds to those proposals byacceptanceorrejectionbywordordeed

• Labororganizationnotnecessarilyauniono Insteadoforganizingalaborunion,workersmayopttoform

something shorn of the rigidity and formality of a laborunion,suchasalabor‐managementcommittee

o It is a medium of employee‐employer interaction in theestablishment through which problems or disputes, orpotential disputes, may be resolved by consensus,compromiseorotherconstructivevoluntarymode

o Thericherthemodesoflabor‐managementinteractions,thebetter.

2. Classificationoflabororganizations• Atthenationallevel

o NationalUnion/Federation–any labororganizationwithatleast10locals/chaptersoraffiliateseachofwhichmustbeadulycertifiedorrecognizedcollectivebargainingagent

DO 40‐03 definition: a group of legitimate laborunions in a private establishment organized forcollectivebargainingorfordealingwithemployersconcerning terms and conditions of employmentfortheirmemberunionsorforparticipatingintheformulation of social and employment policies,standards and programs, registered with theBureau

Example:FederationofFreeWorkers(FFW)o IndustryUnion–anygroupoflegitimatelabororganizations

operating within an identified industry, organized forcollective bargaining or for dealing with employersconcerning terms and conditions of employmentwithin anindustry,orforparticipatingintheformulationofsocialand

employment policies, standards and programs in suchindustry,whichisdulyregisteredwiththeDepartment

o Trade Union Center – group of national unions orfederations organized for themutual aid and protection ofits members, for assisting such members in collectivebargaining, or for participating in the formulation of socialandemploymentpolicies,standardsandprograms

o Alliance – aggregation of unions existing in one line ofindustry, or in a conglomerate, a group of franchisees, ageographicalarea,oranindustrialcenter

Each member union retains its own organization,structure,andindependence

AnalliancecannotrepresentitsmemberunionsinCBAnegotiations

o Company‐union – labor organization,which, inwhole or inpart,isemployer‐controlledoremployer‐dominated

Company‐unionmustnotbeconfusedwithaunionwhich, although comprised exclusively of theemployees of a given employer or employers, isfree of employer‐influence and thus a legitimateorganizationrecognizedbylawasabonafidelaborunion. Those unions are commonly described asinsideunions

• Attheenterpriselevelo Laborunionatenterprise level is independent ifcreatedby

independent registration or a chapter if created throughchartering

o Independentregistrationisobtainedbytheunionorganizersinanenterprisethroughtheirownactioninsteadofthroughtheissuanceofacharterbyafederationornationalunion.

o Independent union has a legal personality of its own notderivedfromthatofafederation

DO 40‐03: labor organization operating at theenterprise level that acquired legal personalitythroughindependentregistration

An independent union may affiliate with afederationornationalunion, inwhich case itmayalsobecalledanaffiliate

• RecentchangesbyRA9481o Norequirednumber

20% registration requirement applies only to anindependentunion

So a local chapter is registerable even if its initialmembershipislessthan20%ofthebargainingunit

o Tentativelegalpersonality Alocalchapteriscreatedonceafederationissuesa

chartercertificate Once issued a charter, chapter acquires legal

personalitytofileapetitionforCE.Allotherunionrightswillbeacquiredbysubmittingthefollowing


(which should be certified under oath by theSecretary or Treasurer and attested by thepresident)inadditiontothechartercertificate:

Names and addresses of the officers andmembersoftheunion

Chapter’sconstitutionandby‐lawswhichcanbethesameasthatofthefederation

o Specifiedgroundsofcancellationo PCEproceedsdespitepetitiontocancelunionregistration

Petition to cancel union registration does notpreventthefilingorthehearingofapetitionforaCE

o Only3groundstocancel AnyfalsehoodabouttheCBL Abouttheelectionofofficers Voluntarydissolution

o Cancellationbyactionofthemembers At least 2/3 of the membership may vote to

dissolvetheirorganization,butthisactionrequiresasubsequentapplicationtocanceltobesubmittedby the board of the organization, attested by thepresident

o Reportorialrequirements Every legitimate labor organization has to submit

to BLR 4 documents (non‐submission is not aground to cancel registration, but erring officermaybepunishedevenbyexpulsion)–

Adoption or amendments to constitutionandby‐laws(CBL)

Election of officers, with list of voters tobesubmittedin30days

Annual financial reports within 30 daysfromcloseoffiscalyear

Annuallistofmemberso Affiliationwithsamefederation

Supervisors’unionandrankandfileunioninsamecompanymayaffiliatewithsamefederation.

o Commingling Commingling of supervisors and rank and file in

one union is not a ground to cancel unionregistration. This excludible member isautomaticallydeemedremovedfromthelist

o Non‐disclosureofidentity In an organized (unionized) enterprise the

federation who files a Petition for CertificationElection (PCE) on behalf of a chapter cannot berequired to identify the chapter’s officers andmembers.ThePCEdoesnothavetobefiledbythelocalofficers

o Non‐disclosureeveninUnionizedcompany

Non‐disclosure (in the preceding number) appliesalsotoafederationthatfilesaPCEonbehalfofitschapter in an enterprise without yet a union asbargainingagent

o Employer,abystander In a PCE the employer is a bystander and has no

right to oppose the petition. His participation islimitedtobeinginformedaboutthepetitionandtobeingrequired tosubmit the listofemployees ifaCEwillbeheld

3. Registrationrationale• IfregisteredwithDOLE,itisconsideredlegitimatelabororganization

(LLO)• But a labor organization is not illegitimate just because it is

unregistered. It is still a lawful organization and can deal with theemployer, but it has no legal personality to demand collectivebargaining with the employer. It cannot petition for a certificationelectionandcan’tholdalegalstrike

• Registration = labor organization legitimate in the sense that it isclothed with legal personality to claim the representational andbargainingrightsortostrikeandpicket

• Registration prescribed is not a limitation to the right of assembly orassociationwhichmay be exercisedwith orwithout said registration.Thelatterismerelyaconditionsinequanonfortheacquisitionoflegalpersonality by labor organizations, associations or unions and thepossession of the rights and privileges granted by law to legitimatelabor organizations. The Constitution does not guarantee these rightsand privileges, much less said personality, which are mere statutorycreations, for the possession and exercise of which registration isrequiredtoprotectboth laborandthepublicagainstabuses, fraud,orimpostorswhoposeasorganizers,althoughnottrulyaccreditedagentsoftheuniontheypurporttorepresent.(PAFLUv.SecofLabor)

• Effectofregistrationunderthecorporationlawo LabororganizationmaybeorganizedundertheCorporation

Law as a nonstock corporation and issued a certificate ofincorporation by the SEC. But such incorporation has onlythe effect of giving to it juridical personalitybefore regularcourts of justice. Such incorporation does not grant therightsandprivilegesofalegitimatelabororganization

4. Wheretoregister• Applications for registration of independent labor unions, chartered

locals,andworkers’associationshallbefiledwithandacteduponbytheRegionalOfficewheretheapplicantprincipallyoperates

• For registration of federations, national unions or workers’associationsoperatinginmorethanoneregionshallbefiledwiththeBureauortheRegionalOffices,butshallbeprocessedandacteduponbytheBureauwhichhasnationaljurisdictionunlikearegionaloffice

5. Registrationrequirements• FederationorNationalUnion


o The application for registration of federations and nationalunionsshallbeaccompaniedbythefollowingdocuments:

A statement indicating the name of the applicantlabor union, its principal address, the name of itsofficersandtheirrespectiveaddresses;

Theminutes of the organizationalmeeting(s) andthe list of employeeswho participated in the saidmeeting(s);

Theannual financialreports if theapplicantunionhasbeeninexistenceforoneormoreyears,unlessithasnotcollectedanyamountfromthemembers,in which case a statement to this effect shall beincludedintheapplication;

The applicant union's constitution and by‐laws,minutesof its adoptionor ratification, and the listof thememberswho participated in it. The list ofratifyingmembers shall be dispensedwith wherethe constitution and by‐laws was ratified oradopted during the organizational meeting(s). Insuch a case, the factual circumstances of theratificationshallberecordedintheminutesoftheorganizationalmeeting(s);

The resolution of affiliation of at least ten (10)legitimate labor organizations, whetherindependent unions or chartered locals, each ofwhich must be a duly certified or recognizedbargaining agent in the establishment where itseekstooperate;and

The name and addresses of the companieswheretheaffiliatesoperateandthelistofallthemembersineachcompanyinvolved.

o Labororganizationsoperatingwithinan identified industrymay also apply for registration as a federation or nationalunion within the specified industry by submitting to theBureauthesamesetofdocuments.

• Independentlaboruniono The application for registration of an independent labor

unionshallbeaccompaniedbythefollowingdocuments: Thenameoftheapplicantlaborunion,itsprincipal

address, the name of its officers and theirrespective addresses, approximate number ofemployeesinthebargainingunitwhereitseekstooperate,withastatementthatitisnotreportedasa chartered local of any federation or nationalunion;

Theminutes of the organizationalmeeting(s) andthe list of employeeswho participated in the saidmeeting(s)

The name of all its members comprising at least20%oftheemployeesinthebargainingunit;

The annual financial reports if the applicant hasbeen in existence for one ormore years, unless ithasnotcollectedanyamountfromthemembers,inwhich case a statement to this effect shall beincludedintheapplication;

The applicant's constitution and by‐laws, minutesof its adoption or ratification, and the list of thememberswhoparticipatedinit.Thelistofratifyingmembers shall be dispensed with where theconstitution and by‐laws was ratified or adoptedduring the organizationalmeeting. In such a case,thefactualcircumstancesoftheratificationshallberecorded in the minutes of the organizationalmeeting(s)

• Workers’Associationo The application for registration of a workers' association

shallbeaccompaniedbythefollowingdocuments: Thenameoftheapplicantassociation,itsprincipal

address, the name of its officers and theirrespectiveaddresses;

Theminutes of the organizationalmeeting(s) andthelistofmemberswhoparticipatedtherein;

Thefinancialreportsoftheapplicantassociationifit has been in existence for one or more years,unless it has not collected any amount from themembers, inwhich case a statement to this effectshallbeincludedintheapplication;

The applicant's constitution and by‐laws towhichmustbeattached thenamesof ratifyingmembers,the minutes of adoption or ratification of theconstitution and by‐laws and the date whenratificationwasmade,unlessratificationwasdonein the organizational meeting(s), in which casesuch fact shall be reflected in the minutes of theorganizationalmeeting(s).

o Application for registration of a workers' associationoperatinginmorethanoneregionshallbeaccompanied, inadditiontotherequirementsintheprecedingsubsection,bya resolution of membership of each member association,dulyapprovedbyitsboardofdirectors.

• Charteredlocalo A union at the enterprise level may be created either

through Independentregistrationor Chartering

Unioncreatedthroughcharteringiscalleda local, a chapter, or a chartered local intheemployerenterprisewheretheunionofficersandmembersareemployees

o Charteredlocalhastoberegistered,notjustreported


o A duly registered federation or national union, directlycreatingacharteredlocal,tosubmittotheRegionalOffice,2copies of the following (documents shall be certifiedunderoathby theSecretaryor theTreasurerof the local/chapterandattestedbyitsPresident):

A charter certificate issued by the federation ornational union indicating the creation orestablishmentofthelocal/charter

The names of the local chapter’s officers, theiraddresses, and the principal office of thelocal/chapter

The local/chapter’s constitution and by‐laws,provided that where the local/chapter’sconstitutionandbylawsisthesameasthatofthefederation or national union, this fact shall beindicatedaccordingly

• LegalpersonalityonlytofileaPCEo Achapteracquireslegalpersonalityonthedateitwasissued

a charter certificate by its mother federation or nationalunion.Theacquisitionof legalpersonalityseemstohappenautomatically,butonlyforpurposesoffilingapetitionforacertificationelection

• Submissionofconfirmingdocumentso Theacquiredpersonality istentativebecauseitneedstobe

confirmedbysubmissionofadditionaldocuments,otherwisethechapterdoesnotbecomeentitledtoallotherrightsandprivilegesofanLLO.Thearticledoesnotfixatimelimitforsubmitting those additional documents because a chapterthatwantstobecomeabargainingagentwillwastenotimetopermanentlylegitimizeitsstatus

o Med Arbiter may dismiss the petition for certificationelection if the union is not listed in DOLE’s registry oflegitimateunionsor if it fails toattachto itspetitionadulyissuedchartercertificate

• Atradeunioncentercannotcreateachapter• WhendoesaChapterbecomeanLLO?

o BeforeDONo.9,issuedin1997:acquirelegalpersonalityfrom the date of filing of the complete documents; it couldnotbethedateoffilingofthedocuments

o NOW: deemed registered and vestedwith legal personalityon the date of issuance of its certificate of registration orcertificateofcreationofcharteredlocal

• RecognitionbyBLRnotaministerialdutyo ProgressiveDevelopmentCor.PizzaHutv.Laguesma

Nagkakaisang Lakas ng Manggagawa‐Katipunanfiled a petition for certification election with theDOLE in behalf of the rank and file employees ofthe Progressive Development Corporation (PizzaHut)

PizzaHut filed amotion to dismiss alleging fraud,falsification and misrepresentation. Med arbiterdirectedtheholdingofacertificationelection;oncea labor organization has filed the necessarydocuments and papers and the same have beencertified under oath and attested to, saidorganizationnecessarilybecomesclothedwiththecharterofaLLO.Inotherwords,recognitionbytheBLRbecomesmerelyaministerialfunction

SC does not agree. After a labor organization hadfiled the necessary papers and documents forregistration, it becomes mandatory for the BLR tocheck if the requirements havebeen compliedwith.TheLaborCodegrants theBLRaperiodof30dayswithin which to review all applications forregistration. This 30day period ensures that anyactiontakenbytheBLRismadeinconsonancewiththemandateoftheLaborCode.

• Requirementsrelaxedo The creation of a local does not need subscription by a

minimumnumberofmembers.o The 20% initial membership is required to register an

independent union but not a local. (thismakes it easier tocreateachapterthananindependentunion)

• Union’slegitimacynotsubjecttocollateralattacko Legal personality may be questioned only through an

independent petition for cancellation of union registrationandNOT by theway of collateral attack in the petition forcertificationelection

6. Collectivebargainingunit(CBU)• Anindependentunionisthattheapplicantshouldhaveamembership

ofatleast20%oftheemployeesinthebargainingunitwhereitseekstooperate

• Bargainingunit–groupofemployeessharingmutualinterestswithina given employerunit, comprisedof all or less than all of the entirebodyofemployees in theemployerunitoranyspecificoccupationalorgeographicalgroupingwithinsuchemployerunit

• The law does not allow supervisors and rank‐and‐file employees tobelongtothesamebargainingunit

• Theunitmaybeasnumerousasthousandsofemployeesorasfewaslessthanahundred.Thelawfixesnominimumormaximumnumber.Whatever the number, 20% should bemembers of the independentunionapplyingforregistration

• The CBU is different from and bigger than a union. Unionmemberscome from the CBU and there can be several rival unions within aCBU.Whileofficers leadandrepresentaunion,aunionrepresentsaCBU.

7. Constitution,bylawsandregulations• Laborunionshavetherighttoadoptconstitutions,rulesandby‐laws

within the scope of the lawful purposes of the union and bind their


members provided they are reasonable, uniform, and notdiscriminatory,andprovidedtheyarenotcontrarytopublicpolicy

• A union’s constitution and by‐laws govern the relationship betweenandamongitsmembers

• JohnsonandJohnsonLaborUnionFFWv.DirectorofLaborRelationso Consti and by‐laws reads: “a member who has been

suspendedorterminatedwithoutreasonablecauseshallbeextendeda financialaid fromthecompulsorycontributionsintheamountof.75fromeachmemberweekly

o Oscarwasdismissedbyemployerbecausehedidnotstateinhis job application form that he had a relative in thecompany.Unionrefused toprovidehim financialaid.Oscarfiledacomplaint.Unioncontendsthatgivingthemoneywastantamount to compelling the union to disburse its fundswithoutauthorityof thegeneralmembershipand tocollectwithouttherequiredindividualauthorizations

o Thenatureofthecontributionbeingcompulsoryandthefactthatthepurposeasstatedisforfinancialaid,clearlyindicatethat individual payroll authorizations of the unionmembersarenotnecessary.Theunion’sconstitutionandbylawsgovernthe relationshipbetweenandamong itsmembers. Theunioncanbeorderedtoreleaseitsfundsintendedforthepromotionof mutual assistance. A suit to enforce a union constitutiondoesnothavetobebroughtagainsteachindividualmember.

• Limitationtobylawso Does not sanction rules to commit wrong, nor does it

authorize interference with the constitutional rights ofothers

o CBLshouldbedemocraticallyratified• Amendments

o May be amended, modified, and extended by the dulyconstitutedunionauthorities

o Constimay bemade, changed, unmade or superseded by amajorityvoteofthemembersoritsconstituentbody

o Majorpolicyquestionsaretobedeliberateduponbysecretballot

8. Provisions common to the registration of labor organizations andworkers’association

• Attestation,fee,copiesofdocumentso Section 1. Attestation requirements. ‐ The application for

registration of labor unions and workers' associations,notice for change of name, merger, consolidation andaffiliation including all the accompanying documents, shallbecertifiedunderoathbyitsSecretaryorTreasurer,asthecasemaybe,andattestedtobyitsPresident.

o Section 2. Payment of registration fee. ‐ A labor union andworkers' association shall be issued a certificate ofregistrationuponpaymentoftheprescribedregistrationfee.

o Section3.Accompanyingdocuments.‐One(1)originalcopyandtwo(2)duplicatecopiesofalldocumentsaccompanying

theapplicationornoticeshallbesubmitted to theRegionalOfficeortheBureau

• Actionontheapplication/noticeso TheRegionalOfficeortheBureau,asthecasemaybe,shall

actonallapplicationsforregistrationornoticeofchangeofname, affiliation,merger and consolidationwithin ten (10)days from receipt either by: (a) approving the applicationandissuingthecertificateofregistration/acknowledgingthenotice/report; or (b) denying the application/notice forfailureoftheapplicanttocomplywiththerequirementsforregistration/notice.

• Denialofapplication/returnofnoticeo Where the documents supporting the application for

registration/noticeofchangeofname,affiliation,mergerandconsolidationareincompleteordonotcontaintherequiredcertification and attestation, the Regional Office or theBureau shall, within five (5) days from receipt of theapplication/notice, notify the applicant/labor organizationconcerned in writing of the necessary requirements andcomplete the same within thirty (30) days from receipt ofnotice.

o Where the applicant/labor organization concerned fails tocomplete the requirementswithin the time prescribed, theapplication for registrationshallbedenied,or thenoticeofchange of name, affiliation, merger and consolidationreturned, without prejudice to filing a new application ornotice

o Thenoticeof theRegionalOfficeortheBureaudenyingtheapplicationforregistration/returningthenoticeofchangeofname,affiliation,mergerorconsolidationshallbeinwritingstating in clear terms the reasons for the denial or return.ThedenialmaybeappealedtotheBureauifdenial ismadebytheRegionalOfficeortotheSecretaryifdenialismadebytheBureau,withinten(10)daysfromreceiptofsuchnotice,on the ground of grave abuse of discretion or violation oftheseRules.

• Appealo The denial by the regional office may be appealed to the

BureauandthentotheCA.o But ifdenialoriginatedat theBureau itself, theappeal is to

theSecretaryofLaboro Itshouldbefiledwithin10daysfromreceiptofsuchnotice,

onthegroundofgraveabuseofdiscretionorviolationoftheRules

o ThememorandumofappealshallbefiledwiththeRegionalOfficeortheBureauthat issuedthedenial/returnofnotice.The memorandum of appeal together with the completerecords of the application for registration/notice of changeof name, affiliation, merger or consolidation, shall betransmitted by the Regional Office to the Bureau or by the


Bureau to the Office of the Secretary, within twenty‐four(24)hoursfromreceiptofthememorandumofappeal.TheBureauortheOfficeoftheSecretaryshalldecidetheappealwithin twenty (20) days from receipt of the records of thecase.

9. Affiliation• Affiliate is an independently registered union that enters into an

agreementofaffiliationwithafederationoranationalunion.o Also refers to a chartered local which applies for and is

grantedanindependentregistrationbutdoesnotdisaffiliatefromitsmotherfederationornationalunion

• Why?o To secure support or assistance particularly during

formativestageofunionizationo To utilize expertise in preparing and pursuing bargaining

proposalso To marshal mind and manpower in the course of a group

actionsuchasastrike• Federationornationalunionceasesassuchwhenitlosesitslocals

o To be registrable or remain registered, should have asaffiliatesnolessthan10localsorchapters,eachofwhichisaduly recognized bargaining agent in the establishmentwhereitoperates

• Relationship between a local or chapter and federation or union isthatofagency,wherethelocalistheprincipalandthefederationtheagent

• Affiliation by a duly registered local unionwith a national union orfederationdoesnotmakethelocalunionloseitslegalpersonality

• ReportofAffiliation;requirementso Independently registeredunionaffiliatingwitha federation

ornationalunionisrequiredtoreportsuchaffiliationo Thereportofaffiliationofindependentlyregisteredlaboro unions with a federation or national union shall be

accompaniedbythefollowingdocuments– Resolution of the labor union's board of directors

approvingtheaffiliation; Minutes of the general membership meeting

approvingtheaffiliation; Thetotalnumberofmemberscomprisingthelabor

union and the names of members who approvedtheaffiliation;

Thecertificateofaffiliationissuedbythefederationin favor of the independently registered laborunion;and

Written notice to the employer concerned if theaffiliatingunionistheincumbentbargainingagent.

10. Disaffiliation• A local union, being a separate and voluntary association, is free to

serve the interest of all its members including the freedom todisaffiliatewhencircumstanceswarrant

• To disaffiliate is a right, but to observe the terms of affiliation is anobligation

• LibertyCottonMillsWorkersUnionv.LibertyCottonMills,Inc.o In their CBA, company recognized the local union,

representedbyPAFLU,asthesolebargainingagento WhiletheCBAwasstillinforce,32outof36membersofthe

uniondisaffiliatedfromPAFLUo Themotherfederationrequestedthecompanytoterminate

theemploymentoftheemployees,whichthecompanydido PAFLU,actingforandinbehalfofitsaffiliate,hadthestatusof

anagentwhilethe localunionremainedthebasicunitoftheassociation, free to secure the common interest of all itsmembers including the freedom to disaffiliate when thecircumstances warrant. This was clearly stated in itsconstitutionandbylawswhichprovided that the localunionshould remain an affiliate as long as 10 or more of themembers evidence their desire to continue the affiliation. Asonly4didnotsigntheresolutionfordisaffiliation,thenintentto disaffiliate was manifest. Hence, the dismissal fromemploymentwasnotjustified

• TropicalHutEmployeesUnionCGWv.TropicalHutFoodMarket,Inc.o When the local unionwithdrew from the old federation to

joinanewone,itwasmerelyexercisingitsprimaryrighttoself‐organization for the effective enhancement andprotectionofcommoninterests.Intheabsenceofenforceableprovisions in the federation’s constitution preventingdisaffiliationofalocalunion,alocalmayseveritsrelationshipwiththeparent.

• Localunionistheprincipal;federation,theagent• Whentodisaffiliate

o Generally, a labor union may disaffiliate from the motherunionto forma localor independentuniononlyduringthe60‐day freedom period immediately preceding theexpirationoftheCBA

o Thefreedomperiodreferstothelast60daysofthefifthandlastyearofaCBA

o But even before the onset of the freedom period,disaffiliation may still be carried out, but such must beeffectedbyamajorityofthemembersinthebargainingunit

True only if the contract of affiliation does notspecifytheperiodforpossibledisaffiliation

Ifitdoes,thestipulationmustbeobserved• Disaffiliationmustbebymajoritydecision

o Disaffiliation has to be decided by the entire membershipthroughsecretballoting

o Disaffiliatingtheunionitselffromitsmotherunionmustbesupported by the majority of the members. If done by aminority,theactmayconstitutedisloyalty

o Villar,etalv.Inciong


Petitioners (the disaffiliating union members)insistthattheirdisaffiliationfromPAFLUandflinga petition for certification election are not acts ofdisloyalty but an exercise of their right to self‐organization.SCthinksotherwise.

Hadpetitionersmerelydisaffiliated from theAmigoEmployees UnionPAFLU, there could be no legalobjectionstheretoforitwastheirrighttodoso.Butthey had constituted the minority in the Union.Petitioners constituted a small minority for whichreason they couldnothave successfullydisaffiliatedthelocalunionfromPAFLU.

• Disaffiliation:effectonlegalstatuso When a union which is not independently registered

disaffiliates from the federation, it is not entitled to therights and privileges granted to a legitimate labororganization.Itcan’tfileapetitionforcertificationelection

• Disaffiliation:effectonuniondueso Theobligationof theemployertodeductandremitduesto

the federation is conditioned on the individual check‐offauthorizationofthelocalunionmembers

o The federation is entitled to receive the dues from theemployeronlyaslongasthelocalunionisaffiliatedwiththefederation.Withoutsaidaffiliation,theemployerhasnolinktothemotherunion

o The obligation of an employee to pay union dues iscoterminouswithhisaffiliationormembership

o Alocalunionwhichhasvalidlywithdrawnfromitsaffiliationwith the parent association and which continues torepresent the employees of an employer is entitled to thecheck‐offduesunderacollectivebargainingcontract

• Disaffiliation; effect on existing CBA; the “substitutionary”doctrine

o CBA continues to bind the members of the new ordisaffiliated and independent union up to the CBA’sexpirationdate

o Substitutionarydoctrineprovidesthattheemployeescannotrevoke the validly executed collective bargaining contractwith their employer by the simple expedient of changingtheirbargainingagent

11. Revocationofcharter• A federation, national unionorworker’s associationmay revoke the

charterissuedtoalocal/chapterorbranchbyservingonthelatteraverified notice of revocation, copy furnished the Bureau, on theground of disloyalty or such other grounds specified in theconstitutionandby‐lawsofthefederation,nationalunionorworkers’association

• Revocationshalldivestthelocal/chapterofitslegalpersonalityuponreceipt of the notice by the Bureau, unless in the meantime, it hasacquiredindependentregistration

• Effect of cancellation of registration of federation or nationaluniononlocals/chapters

o Cancellation shall operate to divest its locals/chapters oftheir status as legitimate labor organizations, unless thelocals/chapters are covered by a duly registered CBA (inwhichcase,theyshallbeallowedtoregisterasindependentunions.Failingtodoso, theywill losetheirstatusupontheexpirationoftheCBA)

12. Mergerorconsolidation• Merger is the process where a labor organization absorbs another,

resulting in the cessation of the absorbed labor organization’sexistence and the continued existence of the absorbing labororganization

o Effect is to transfer to the absorbing organization all therights,interestsandobligationstotheabsorbedorganization

o Ofteninvolvesalargerunionmergingwithasmalleruniono Unionmerge for reasons similar to thosebehind corporate

mergers, as in to gain access to greater resources andexpertise,competition,jobsecurityandinstitutionalsurvival

• Consolidation refers to creationor formationof anewunionarisingfromtheunificationof2ormoreunions

o Newly created organization acquires all the rights andinterestsoftheconsolidatingorganizations

o Occurs between 2 unions that are approximately the samesize

• Merger/consolidationdoesnoteasilyhappeno Whichunionwillbeabsorbed?Whichisdominant?o Howwillemployerreacttounionmerger?

• Noticeofmerger/consolidationof labororganizations,wheretofile

o Notice of merger or consolidation of independent laborunions, chartered locals andworkers' associations shall befiledwithandrecordedbytheRegionalOfficethatissuedthecertificateofregistration/certificateofcreationofcharteredlocal of either the merging or consolidating labororganization. Notice of merger or consolidation offederations or national unions shall be filed with andrecordedbytheBureau.

• Requirementsofnoticeofmerger/consolidationo The notice of merger of labor organizations shall be

accompaniedbythefollowingdocuments: The minutes of merger convention or general

membership meeting(s) of all the merging labororganizations, with the list of their respectivememberswhoapprovedthesame;and

The amended constitution and by‐laws andminutes of its ratification, unless ratificationtranspired in the merger convention, which factshallbeindicatedaccordingly.

• Certificateofregistration


o The certificate of registration issued to merged labororganizations shall bear the registration number of one ofthe merging labor organizations as agreedupon by thepartiestothemerger.

o Thecertificateofregistrationshallindicatethefollowing: Thenewnameofthemergedlabororganization; The fact that it is amerger of two ormore labor

organizations; The name of the labor organizations that were

merged; Itsofficeorbusinessaddress;and The date when each of the merging labor

organizations acquired legitimate personality asstated in their respective original certificate ofregistration.

13. Changeofname• Thenoticeforchangeofnameofaregisteredlabororganizationshall

be filedwith theBureauor theRegionalOfficewhere theconcernedlabororganization'scertificateofregistrationorcertificateofcreationofacharteredlocalwasissued.

• The notice for change of name of a labor organization shall beaccompaniedbythefollowingdocuments:

o Proofofapprovalorratificationofchangeofname;ando Theamendedconstitutionandby‐laws.

• Effectofchangeofnameo Shallnotaffectitslegalpersonality

Article238.Cancellationofregistration.

Article238A.Effectofpetitionforcancellationofregistration

Article239.Groundsforcancellationofunionregistration

Article239A.Voluntarycancellationofregistration

1. Cancellationofregistration;grounds• Cancellation is the government’s act that divests the organization of

status• Itrevertstoitscharacterpriortotheregistration• Although it does not cease to exist or become an unlawful

organization,itsjuridicalpersonalityaswellasitsstatutoryrightsandprivilegesissuspended

• Thirdground–desireoftheunionmembersthemselves;requisites:o Members desire to dissolve or cancel should have been

voteduponthroughsecretballotingo Balloting should take place in a meeting called for the

purposeofdecidingwhetherornottodissolvetheuniono Votetodissolveshouldrepresent2/3affirmativevoteofthe

generalmembership,notjustofthequorum

o Members’ resolution should be followed by an applicationfor cancellation passed and submitted by the union’sgoverning board, which applicationmust be attested to bythepresident

• Invalidgroundso Illegalstrikeo Nonrenewalofregistration/permit

• Caboandothergroundsdeleted• Administrativecancellation;thereportorialrequirements

o It shall be the duty of every legitimate labor unions andworkersassociationstosubmittotheRegionalOfficeortheBureau which issued its certificate of registration orcertificateofcreationofcharteredlocal,asthecasemaybe,two(2)copiesofeachofthefollowingdocuments:

Anyamendmenttoitsconstitutionandby‐lawsandthe minutes of adoption or ratification of suchamendments, within thirty (30) days from itsadoptionorratification;

Annual financial reports within thirty (30) daysafterthecloseofeachfiscalyearorcalendaryear;

Updated list of newly‐elected officers, togetherwith the appointive officers or agents who areentrustedwiththehandlingof funds,withinthirty(30) days after each regular or special election ofofficers, or from the occurrence of any change inthe officers of agents of the labor organization orworkersassociation;

Updated list of individual members of charteredlocals, independent unions and workers'associationswithinthirty(30)daysafterthecloseofeachfiscalyear;and

Updatedlistofitscharteredlocalsandaffiliatesormember organizations, collective bargainingagreementsexecutedandtheireffectivityperiod,inthe case of federations or national unions, withinthirty (30)days after the closeof each fiscal year,as well as the updated list of their authorizedrepresentatives, agents or signatories in thedifferentregionsofthecountry.

o As understood in these Rules, the fiscal year of a labororganization shall coincidewith the calendaryear,unlessadifferent period is prescribed in the constitution and by‐laws.

o Failure to submit for 5 consecutive years authorizes theBureau to institute cancellation proceedings upon its owninitiativeoruponcomplaintbyanyparty‐in‐interest

2. Whofilespetitionforcancellation• Any party‐in‐interest may commence a petition for cancellation of

registration• Employerisaparty‐in‐interest


• Petition to cancel shall be under oath and shall state clearly andconciselythefactsandgroundsreliedupon,accompaniedbyproofofservicetotherespondent.Suchpetitionshouldbeaseparateaction;itcannotbeentertainedinthepetitionforcertificationelectionfiledbytheunion

3. Wheretofilepetition• Subjecttotherequirementsofnoticeanddueprocess,theregistration

of any legitimate independent labor union, chartered local andworkers'associationmaybecancelledbytheRegionalDirector,orinthe case of federations, national or industry unions and trade unioncenters, by the Bureau Director, upon the filing of an independentcomplaintorpetitionforcancellation

• CancellationordersissuedbytheRegionalDirectorareappealabletotheBLR.

• BLRdecisionisfinalandexecutory,butmaybeelevatedtotheCAbycertiorari

• BLRdecisions on cancellation cases that originated at theBLR itselfmaybeappealedtotheSecretaryofLaborand,bycertioraritotheCA

4. Procedure• Rulesthatareapplicabletointer/intra‐uniondisputes• Certainproceduralrequirementsapplyparticularlytodelistingdueto

failuretocomplywith“reportorialrequirements”

Article240.Equityoftheincumbent.

ChapterII:Rightsandconditionsofmembership.

Article241.Rightsandconditionsofmembershipinalabororganization.

1. Democratizationofunions• Afundamentalparadoxindemocraticallygovernedmarketeconomies

inthepresenceofdemocracyinthepoliticalspherebutitsabsenceinthe economic setting. The governing philosophy is ownership ofprivateproperty,notpopularsovereignty,andthetraditionalnormissuperior‐subordinaterelationship.Theworkers,generally,donotgetto choose their superiors nor decide policy question or control themakingofrules.

• Thisparadoxgerminates theseedofunionismaspiring forpowerintheirworkplace

• As unionism’s aim is to install industrial democracy, the unionsthemselvesmustbedemocratic

• Todemocratizeunions,Article241requiresthattheunionofficersbeelected directly by the members through secret ballot and that themajor policy decisions, as a rule, be made by the union members,again,bysecretballot

2. Natureofrelationshipbetweenunionanditsmembers• Theremustbefairdealingbetweentheunionanditsmembers,which

isfiduciaryinnature,andarisesoutof2factors–

o Degree of dependence of the individual employee on theunionorganization

o Comprehensive power vested in the union with respect totheindividual

• Union may be considered but the agent of its members for thepurpose of securing for them fair and justwages and goodworkingconditions

o Asagent, theunionissubjecttotheobligationofgivingthemembers as itsprincipals all information relevant tounionandlabormattersentrustedtoit

• Duty of court to protect laborers from unjust exploitation byoppressiveemployersandunionleaders

o Fair dealing is equally demanded of unions as well as ofemployersintheirdealingswithemployees

3. Rightsofunionmembers• Political right –member’s right to vote and be voted for, subject to

lawfulprovisionsonqualificationsanddisqualifications• Deliberative and decision‐making right – member’s right to

participate in deliberations on major policy questions and decidethembysecretballot

• Rightsovermoneymatters–o Member’srightagainstexcessivefeeso Right against unauthorized collection of contributions or

unauthorizeddisbursementso Right to require adequate records of income and expenses

andtherightofaccesstofinancialrecordso Righttovoteonofficers’compensationo Right to vote on proposed special assessments and be

deducted a special assessment only with the member’swrittenauthorization

• Right to information – member’s right to be informed about theorganization’sconstitutionandby‐lawsandtheCBAandabout laborlaws

• Article241,thoughnotsodenominated,carriesthecharacterofabillofrightsofunionmembers

• Union members, as employees, retain the right to directly presentgrievancestotheemployeratanytime

• Eligibilityformembershipo When, how and under what conditions an employee

becomes a union member depends on the union’sconstitution and by‐laws inasmuch as Article 249 gives alabor organization the right to prescribe its own rules foracquisitionorretentionofmembership

Nonetheless,Article277statesthatanemployeeisalreadyqualifiedforunionmembershipstartingonhisfirstdayofservice

o Employee’s membership in a union does not necessarilymeancoveragebytheCBA,ifoneexists

CBA defines its coverage as agreed upon by theparties. It may state that it covers only regular


employees, or even exclude certain positions orjobholders.

Qualifying for union membership, therefore, doesnot necessarilymean inclusion in the coverage oftheCBA

Inclusion or coverage in the CBA depends on thestipulationsintheCBAitself

o Thereverseisequallytrue:membershipintheCBUdoesnotautomaticallymeanmembershipintheunion

CBUmembersvotetoselectabargainingunionortoratifyaCBA.Butonlyunionmemberscanvotetoelectunionofficers, tostrikeornottostrike,ortodecidemajorpolicyissuesintheunion

InclusionintheCBUdependsonthedeterminationofitsappropriatenessunderArticle234and235

4. Electionofunionofficers• Officers of the union are elected directly by the members in secret

ballotvoting• Election takes place at intervals of five years which is the term of

office of the union officers including those of a national union,federation,ortradeunioncenter

• Whatpositionstofillup,where,andhowelectionshouldbedonearematters left by law to the union’s constitution and by‐laws or toagreementamongthemembers

o Only in absence thereof will the IRR apply: incumbentpresident to create an election committee within 60 daysbeforeexpirationoftheincumbentofficers’term

Rulesspecifythecompositionaswellasthepowersandduties of the election committee, but its rulesand actions cannot contradict the Labor Codemandates

• Iftheofficerswithexpiredtermdonotcallanelection,theremedyisfor at least 30% of the members to file a petition with the DOLERegionalOffice

• USTFacultyUnionetalv.BitonioJr.o Petitioners, disgruntled union members, claim that the

numerous anomalies allegedly committed by the unionofficers impelled them to elect a new set of officers beforethe end of the term of the incumbents. DOLE declaredelection null and void on the ground that the electionwasinitiated and conducted not in accordance with theconstitutionandby‐laws

o Petitioner’sfrustrationovertheperformanceoftheincumbentofficers,aswellas their fearsofa “fraudulent”election tobeheld under the latter’s supervision, could not justify themethod they chose to impose theirwill on the union. It doesnot justify disregarding the union’s constitution and bylaws.The point to be stressed is that the union’s CBL is thefundamental law that governs the relationship between andamongthemembersoftheunion.WithoutrespectfortheCBL,

aunionasademocratic institutiondegenerates intonothingmorethanagroupofindividualsgovernedbymobrule.

• Eligibilityofvoterso Onlymembersof theunion can takepart in the electionof

unionofficerso USFederallawmemberingoodstandinghastherightto

voteo Amember ingoodstanding isanypersonwhohas fulfilled

therequirementsformembershipintheunionandwhohasneither voluntarily withdrawn frommembership nor beenexpelled or suspended frommembership after appropriateproceedings consistent with the lawful provisions of theunion’sconstitutionandby‐laws

o A labor organization may prescribe reasonable rules andregulationswithrespecttovotingeligibility

The right to vote may be deferred withinreasonable limits, but a union may not createspecialclassesofnonvotingmembers

Alabororganizationmayconditiontheexerciseofthe right to vote on the payment of dues, sincepaying dues is a basic obligation of membership.Thisruleissubjecttoqualifications–

Any rule denying dues‐delinquentmembers the right to vote must beapplieduniformly

Members must be afforded a reasonableopportunitytopaydues,includingagraceperiod during which dues may be paidwithoutanylossofrights

o Question of eligibility to vote may be determined throughthe use of the applicable payroll period and employee’sstatusduringtheapplicableperiod

o Submission of the employees’ name with the BLR asqualifiedmembers of the union is not a condition sine quanon to enable said members to vote in the election of theunion’sofficers

• Unionofficermustbeanemployeeo Oneshouldbeemployedinthecompanytoqualifyasofficer

of a union in that company This rule, while deleted bydepartment orders, remains because it is required in theLaborCodeitself

• Disqualificationofunionofficerso No person who has been convicted of a crime involving

moral turpitude shall be eligible for election as a unionofficerorforappointmenttoanypositionintheunion

Crime involvingmoral turpitude–actofbaseness,vilenessordepravityintheprivateorsocialdutieswhich a man owes his fellowmen, or to society,contrary to accepted and customary rule of rightand duty between man and man, or conduct


contrary to justice, honesty, modesty or goodmorals

o No labororganization shall knowinglyadmit asmemberorcontinue in membership any individual who belongs to asubversive organization or who is engaged directly orindirectlyinanysubversiveactivity

This disqualification applies with equal force tocandidates in union elections one who cannoteven be a member cannot be a candidate for anoffice

• Unionelectionprotest:proclamationofwinnerso Acomplaintorprotestregardingelectionofunionofficers–

asubjectnotmentionedatallintheLaborCode–istreatedbytheIRRasanintra/inter‐uniondispute

5. Actionagainstunionofficers• Aunionofficer,afterhiselection,maynotbeexpelledfromtheunion

forpastmalfeasanceormisfeasance.Todosowouldnullifythechoicemadebythemembers

• Theremedyagainsterringunionofficersisnotreferendumbutunionexpulsion

• Absent overriding considerations to the contrary, the will of themajority of the workers who voted in the elections should berespected

• Even if the disqualification could be justified , the candidates ofpetitionercannotbedeclaredasthewinnersinthedisputedelection.Themerefactthattheyobtainedthesecondhighestnumberofvotesdoes not mean that they will thereby be considered as the electedofficersifthetruewinnersaredisqualified

6. Dueprocessinimpeachment• LittonMillsEmployeesAssociationkapatiranv.FerrerCalleja

o There was a procedure set in the union’s CBL regardingimpeachment

o Itclearlyappearsthattheprocedurewasnotfollowedbythepetitionerswhen they impeachedUmali. Therewas difficultyon thepartof thepetitioners in complyingwith the requiredprocedure for impeachment considering that the petition toimpeachhadtobeaddressedtotheChairmanoftheExecutiveBoardoftheUnion,andthatthemajoritymembershipwhichwould decide on the impeachment had to be convened onlyuponcalloftheChairmanoftheExecutiveBoard,who,inthecase at bar, happened to beUmali himself. Petitioner shouldhave shown substantial compliance with said impeachmentprocedure, by giving Umali ample opportunity to defendhimself.

7. Expulsionofmember• Justasanofficerisentitledtodueprocess,sodoesamember• Ferrer,etalv.NLRC

o Ferrer and companions filed with the DOLE a complaintseekingtheexpulsionfromSAMAHANof itsofficersheadedby Capitle allegedly because the officers failed to attend to

the economic demands of the workers. New officers wereelected. Election was objected to by FFW. Union officialsthereafter expelled Ferrer, et al from the union anddemanded from the company the termination of theiremployment

o The union has a specific provision for the permanent ortemporary“expulsion”ofitserringmembersinitsconstitutionand bylaws. The provision requires that there be a hearing.Yet,nohearingwaseverconductedbytheSAMAHANto lookintopetitioners’ explanationof theirmoves tooust theunionleadership.Whileitistruethatpetitioners’actionsmighthaveprecipitated divisiveness, and, later, showed disloyalty to theunion, still, the SAMAHAN should have observed its ownconstitutionandbylawsbygivingpetitionersanopportunityto air their side and explain their moves. If, after aninvestigation the petitioners were found to have violatedunion rules, then and only then should they be subjected toproperdisciplinarymeasures

• Expulsion of a member for arbitrary or impetuous reasons mayamounttoULPbytheunion

8. Reliefwiththeunion• Generally, redress must first be sought within the union itself in

accordancewithitsCBL• WhentheCBLprovidesfortheprocedureforredress, thisshouldbe

resortedtonotonlytogivethegrievancemachineryorappeals’bodyoftheuniontheopportunitytodecidethematterbyitself,butalsotoprevent unnecessary and premature resort to administrative orjudicialbodies

• Exceptionso Whenexhaustionof remedieswithin theunion itselfwould

practically amount to a denial of justice, it would not beinsistedupon,asaconditiontotherighttoinvoketheaidofacourt

9. Consequenceofviolationofrights• If the conditions of membership, or the rights of the members, are

violated, the violation may result in the cancellation of the unionregistrationortheexpulsionoftheculpableofficers

• Any complaint or petition with allegations of mishandling,misappropriation or non‐accounting of funds in violation of Article241 shall be treated as an intra‐uniondispute. It shall beheard andresolvedbytheMed‐Arbiter

• Exception:when30%notrequiredo Labor Code requires 30% of the members to report a

violationofthelabororganizationprocedureso Nevertheless, when such violation directly affects only one

or twomembers, thenonly one or twomemberswouldbeenoughtoreportsuchviolation

Article242oftheLaborCodestatesthatareportofaviolationofrightsandconditionsofmembershipin a labor organization may be made by “at least


30%ofallthemembersofaunionoranymemberor members specially concerned” use of thepermissive “may” in theprovisionatoncenegatesthe notion that the assent of 30% of all themembers is mandatory. More decisive is the factthat the provision expressly declares that thereportmaybemade,alternativelyby“anymemberormembersspeciallyconcerned”

10. Visitorialpower• Article 274 authorizes the Secretary ofDOLE or his duly authorized

representative to inquire into the financial activities of any labororganization on the basis of a complaint under oath, supported by20% of the membership in order to determine compliance ornoncompliance with the laws and to aid in the prosecution of anyviolationthereof

11. Checkoffsandassessments• Check‐off is a method of deducting from an employee’s pay at

prescribed period, the amounts due the union for fees, fines orassessments

• Article113–oneofthelawfuldeductionsfromemployee’swageisforunion dues, in cases where the right of the worker or his union tocheck‐off has been recognized by the employer or authorized inwritingbytheindividualworkerconcerned

• Amountofunionduesshouldbereasonable• Amount and collection of union dues are questions that affect the

entiremembership,hence,theyhavetobeapprovedbythemembersthemselves

• Assessments,likedues,mayalsobecheckedoffo Duesarepaymentstomeettheunion’sgeneralandcurrent

obligations. The payment must be regular, periodic, anduniform.

o Payments for a special purpose, especially if required onlyforalimitedtime,areregardedasanassessment

o Attorney’sfeesmaynotbedeductedorcheckedofffromanyamount due to an employee without his written consent,exceptformandatoryactivitiesundertheCode

o Mandatory activity is a judicial process of settling disputelaiddownbythelaw.

Amicable settlement entered into bymanagementandunionisNOTamandatoryactivity

o Deductions forunionservice feeareauthorizedby lawanddonotrequireindividualcheck‐offauthorizations

o Palacolv.PuraFerrerCalleja Union president submitted to the company the

ratification by the union members of the newlyconcludedCBA.Healsosubmittedanauthorizationforthecompanytodeductunionduesand10%asspecial assessment from the CBA lump sum. 528members submitted documents to the companystatingthatalthoughtheyhadratifiedthenewCBA,

they were withdrawing or disauthorizing thedeductionofanyamountfromtheirCBAlumpsum.

ThefailureoftheUniontocomplystrictlywiththerequirements set out by the law invalidates thequestioned special assessment. Substantialcomplianceisnotenoughinviewofthefactthatthespecialassessmentwilldiminishthecompensationofthe union members. Their express consent isrequired, and this consent must be obtained inaccordance with the steps outlined by law, whichmustbefollowedtotheletter.

There isnothing in the lawwhich requires that thedisauthorizationsmustbeinindividualform.

• Three requisites to collect special assessment (incidentalexpenses,attorney’sfeesandrepresentationexpenses)

o Authorization by awritten resolution of themajority of allthemembersatthegeneralmembershipmeetingdulycalledforthepurpose

o Secretary’srecordoftheminutesofthemeetingo Individualwrittenauthorizationforcheck‐offdulysignedby

theemployeeconcerned• Article 241 (n and o): Authorization should proceed from free

consent• Checkoffofagencyfee

o Another allowable deduction from employee’s wage isagency fee. This is an amount, equivalent to union dues,which a nonunion member pays to the union because hebenefitsfromtheCBAnegotiatedbytheunion

• Illegalcheckoffgroundforcancellationo Violationofthelawoncheck‐offofspecialassessmentswas

oneofthegroundsforcancellationofunionregistrationo Onthepartoftheemployer,illegalcheck‐offmaygiveriseto

achargeofillegaldeduction• Employer’sliabilityincheckoffarrangement

o No provision of lawmakes the employer directly liable forthe payment to the labor organization of union dues andassessments that the former fails to deduct from itsemployee’s salaries and wages pursuant to a check‐offstipulation

Employer’s failure to make the requisitedeductions may constitute a violation of acontractual commitment for which it may incurliabilityforunfairlaborpractice.Buttheemployer,by that omission, does not incur liability to theunion for the aggregate of dues or assessmentsuncollected from the union members, or agencyfeesfornon‐unionemployees

o Obligationtopayunionduesandagencyfeesobviouslydoesnotdevolveupontheemployer,buttheindividualemployee.It is a personal obligation not demandable from the


employerupondefaultorrefusaloftheemployeetoconsentto a check‐off.Theonlyobligationof theemployerunderacheck‐offistoeffectthedeductionsandremitthecollectionstotheunion

• Jurisdictionovercheckoffdisputeso Regional Director of DOLE has jurisdiction over check‐off

disputeso BLRhas jurisdictionover casesof violations thereof and to

metetheappropriatepenalty

ChapterIII:Rightsoflegitimatelabororganizations

Article242.Rightsoflegitimatelabororganizations.

1. NotanyLLO• Firstthreerightsinthisarticledonotpertaintojustaboutanyunion

but ONLY to the union that has been selected as the bargainingrepresentativeoftheemployeesinthebargainingunit

o Unionwhosedemandforcollectivebargainingwasrebuffedby the employer, because the union was not the certifiedbargainingagent,hasnorighttostageastrike

2. Rightofuniontorepresentitsmembers• Itisthefunctionofalaboruniontorepresentitsmembersagainstthe

employer’s ULP. It can file an action in their behalf without theprocedureofjoiningeachandeverymemberasaseparateparty

• Labor union has the requisite personality to sue on behalf of itsmembersfortheirindividualmoneyclaims

• Membersdoubtingtheiruniono Whenaunionfilesacase“forandinbehalfofitsmembers”,

a member or several members of that union will not bepermitted to file in the same case a complaint‐in‐intervention even if it alleges that the union was notpursuingthecasediligently

o Theinterventionmaybeallowedwhenthereisasuggestionoffraudorcollusionorthattherepresentativewillnotactingood faith for theprotectionofall interests representedbytheunion

3. Compromisebindinguponminoritymembersofunion;exception• Compromise agreement between union and company, pursuant to

which the complaint in an ULP case had been withdrawn anddismissed,isbindingupontheminoritymembersoftheunion.Actiontaken byminoritymembers in disauthorizing counsel of record andfilinganotherULPcaseiscontrarytothepolicyoftheMagnaCartaofLabor, which promotes the settlement of differences betweenmanagementandlaborbymutualagreement

• BUTcourthadreachedadifferentconclusioninacasewhere257outof 262 complainants agreed to drop their criminal and ULPcomplaints.Theunion,saidthecourt,hadnoauthoritytocompromise

the individual claims of members who did not consent to suchsettlement. Not having authorized their union to enter into suchcompromise, those members are not bound by the terms of thesettlement

4. Compromiseofmoneyclaims• Money claims due to laborers cannot be the object of settlement or

compromise effected by a union or counsel without the specificindividualconsentofeachlaborerconcerned

• Union officers’ authority to compromise must be presented inevidence

• Judgment based on a compromise agreement authorized by themembersdoesnotbindtheindividualmembersorcomplainantswhoarenotpartiestheretonorsignatoriestherein

• Complainant union members had not ratified the Return‐to‐WorkAgreement.Itfollowsthattheycan’tbeheldboundbythatagreement

• Waiverofmoneyclaimsbyworkersandemployeesmustberegardedasapersonalright.Forawaivertobeeffective,theindividualconsentorratificationoftheworkersoremployeesinvolvedmustbeshown

5. Righttobefurnishedwithfinancialstatement• Union has the right to be furnished with the employer’s audited

financialstatements.• 4pointsintimewhenunionmayaskinwritingforthesestatements–

o Aftertheunionhasbeenrecognizedbytheemployerassolebargainingrepresentativeoftheemployeesinthebargainingunit;or

o AftertheunioniscertifiedbyDOLEassuchsolebargainingrepresentative;or

o Withinthelast60daysofthelifeofaCBA;oro Duringthecollectivebargainingnegotiation

• Audited financial statements, including balance sheet and profit andloss statement, should be provided by the employer within 30calendardaysafterreceiptoftheunion’srequest

6. Righttocollectdues

Article242A.Reportorialrequirements.

• Before: failure to submit the periodic documentary requirementswas reasonenoughtocanceltheregistrationofthedelinquentlabororganization

• NOW:suchcancellationisnolongerallowed• IRR:procedureto“delist”alabororganizationthatdoesnotcomplyfor5years

withthereportorialdutyo Apparently, IRR considers delisting as different from cancellation

eveniftheybothleadtolossoftheunion’slegalpersonality

TitleV:Coverage

Article243.Coverageandemployees’righttoselforganization.


1. Organizingingeneral• Rights to organize and to bargain are given not exclusively to

employees. Even workers who are not employees of any particularemployermayformtheirorganizationstoprotecttheirinterests

• The right to organize refers also to forming, joining, or assisting alabororganization

o Thisrightcarrieswithittherighttoengageingroupaction,provided it is peaceful, to support the organization’sobjectivewhichisnotnecessarilycollectivebargaining,but,simply, to aid and protect its members. But this might bedifferentiatedfromstrike,becauseitisworkstoppage

• Coverageoftherighttoorganize;exceptionso Righttoform,joinorassistalabororganizationisgrantedto

allkindsofemployeesofallkindsofemployers–publicorprivate,profitornonprofit,commercialorreligious

o This right is extended even to those employed intraditionally nonprofit organizations like religious,charitable,medicaloreducationalinstitutions

o Butthisall‐inclusivecoverageadmitsofexceptions– Under Article 245, managerial employees,

regardless of the kind of organizationwhere theyare employed, may not join, assist or form anylabororganization,meaningalaborunion

Accordingly, managerial employees cannot, in theabsence of an agreement to the contrary, beallowedtoshareintheconcessionsobtainedbythelabor union through collective negotiation.However,thereisnothingtopreventtheemployerfrom granting benefits to managerial employeesequal to or higher than those afforded to unionmembers

o Supervisorsareallowedtoorganize,buttheycan’tform,joinorassistarank‐and‐fileunion

2. Righttoorganizecannotbebargainedaway• SouthernPhilippinesFederationofLaborv.Calleja

o Althoughwe have upheld the validity of the CBA as the lawamong the parties, its provisions can’t override what isexpresslyprovidedbylawthatonlymanagerialemployeesareineligibletojoin,assistorformanylabororganization.Hence,whether they are employed as supervisors or in theconfidential payrolls, if the nature of their job does not fallunder the definition of managerial as defined in the LaborCode, they are eligible to bemembers of the bargainingunitandtovoteinthecertificationelection

3. Employeesofnonprofitinstitutions• Rank‐and‐file employees of nonprofit medical institutions are

permitted to form, organize or join labor unions of their choice forpurposesofcollectivebargaining

4. Exception:employeemembersofacooperative• SanJoseElectricServiceCooperative,Inc.v.MinistryofLabor

o A cooperative’s owners and/ormembers are the oneswhorun and operate the business while the others are itsemployees.

o Anemployeeof sucha cooperativewho isamemberandcoowner thereof can’t invoke the right to collectivebargaining,for certainly an owner can’t bargain with himself or his coowners. However, insofar as it involves cooperatives withemployees who are not members or coowners thereof, suchemployeesareentitledtoexercisetherightsofallworkerstoorganization,collectivebargainingnegotiationsandothers.

• Inanother case, thecourt clarified that it is the factofownershipofthe cooperative, and not involvement in the management thereof,which disqualifies a member from joining any labor organizationwithin the cooperative. Thus, irrespective of the degree of theirparticipation in the actual management of the cooperative, allmembersthereofcan’tform,assistorjoinalabororganizationforthepurposeofcollectivebargaining

• Butmember‐employeesof a cooperativemaywithdrawasmembersof the cooperative in order to join a labor union. Membership in acooperativeisvoluntary;inherentinitistherightnottojoin.

• Exceptiontoexception:association,notuniono While the members of a cooperative who are also its

employees can’t unionize for bargaining purposes, the lawdoesnotprohibitthemfromforminganassociationfortheirmutualaidandprotectionasemployees

o DO40‐03:worker’sassociationorganizedforthemutualaid and protection of its members or for an legitimatepurposeotherthancollectivebargaining

5. Exception:internationalorganizations• A certification election can’t be conducted in an international

organizationwhichthePhilippinegovernmenthasgrantedimmunityfrom local jurisdiction, such as IRRI and the Int’l CatholicMigrationCommission(ICMC)

• ICMCv.Callejao An international organization is one set up by agreement

between2ormore states. It is endowedwith somedegreeofinternational legal personality such that they are capableexercisingspecificrights,dutiesandpowers

o 3 propositions underlying the grant of internationalimmunitiestointernationalorganizations–

Internationalinstitutionsshouldhaveastatuswhichprotectsthemagainstcontrolorinterferencebyanyonegovernment intheperformanceof functions fortheeffectivedischargeofwhichtheyareresponsibletodemocraticallyconstitutedinternationalbodiesinwhichallthenationsconcernedarerepresented

No country should derive any national financialadvantage by levying fiscal charges on commoninternationalfunds


The international organization should, as acollectivity of States members, be accorded thefacilitiesfortheconductofitsofficialbusiness

o The raison d’etre for these immunities is the assurance ofunimpeded performance of their functions by the agenciesconcerned

o The immunity from local jurisdiction by no means deprivelaborof itsbasicrights.So,certificationelection isbarredbyimmunity

• Waiverofimmunityo WaiverofitsimmunityisdiscretionarytoIRRI.Withoutsuch

express waiver, the NLRC or its labor arbiters have nojurisdiction

• Foreignworkerso Foreigners, whether natural or juridical, as well as foreign

corporations, are strictly prohibited from engaging directlyorindirectlyinallformsoftradeunionactivities

o But aliensworking in the countrywith validwork permitsmay exercise the right of self‐organization if they arenationalsofacountrythatgrantsthesameorsimilarrighttoFilipinoworkers

6. Exception:religiousobjectors;IglesianiCristomembers• IndustrialPeaceAct(1953):employerandtheunioncouldenterinto

a“closedshop”agreementwhichwouldcompelemployeestobecomeunionworkersasaconditionofcontinuedemployment

• Exemption: exempted from such compulsory unionmembership thefollowers of any religious sect (such as the Iglesia ni Cristo) whoseteachingsforbidmembershipinlaborunions

• Victorianov.ElizaldeRopeWorkers’Uniono Membersofsaidreligioussectscan’tbecompelledorcoerced

to join labor unions evenwhen said unions have closed shopagreements with the employers; that in spite of any closedshop agreement, members of said religious sectors can’t berefused employment or dismissed from their jobs on the solegroundthattheyarenotmembersofthecollectivebargainingunion

o Free exercise of religious profession or belief is superior tocontractrights

o Appellant claims that unless the Act is declaredunconstitutional,employerswillpreferemployingmembersofreligioussectsthatprohibittheirmembersfromjoininglaborunions,andthusbeafatalblowtounionism.TheSCdoesnotagree. The threat to unionismwill depend on the number ofemployeeswhoaremembersofthereligioussectsthatcontrolthedemandsofthelabormarket

• Doestheexemptionstillstand?o Does theexemptionof religiousobjectors fromcompulsory

union membership still union? The question has not beensquarelyanswered,butfourpointsmustbenoted–

DecisioninVictorianov.Elizaldewaspromulgatedin 1974 and at the time the new Labor Codewasalreadyissued,andalthoughtheCodedidnotcarrytheexemptionunderRA3350,theCourtcited“thenew Labor Code” in rejecting the argumentsassailingthevalidityofRA3350.Thesenseisthatthe Labor Code and RA 3350 do not repel eachother

Fr.B: cited theVictoriano ruling as an illustrationoftherighttofreeexerciseofone’sreligion.Evenifthe exemption underRA 3350 is not found in theLabor Code, still the exemption can be invokedunderthefreedomofreligionclauseinthepresentConstitution’sBillofRights

Kapatiran v. Calleja – court refused to compel theINKmemberstojointheincumbentunion

Ebralinag v. Division Superintendent of Cebu – inexempting Jehovah’s Witnesses from compulsoryparticipationinflagceremonies,citedthereligiousobjectors’ similar exemption from compulsoryunion membership. Hence, the SC acknowledgestheexistenceorjustificationoftheexemption

• IglesianiKristoMembersmayformandjoinownuniono KapatiransaMeatandCanningDivisionv.Calleja

This Court’s decision in Victoriano v. Elizalde Ropeupholding the right of members of the Iglesia niKristo sect not to join a labor union for beingcontrary to their religious beliefs, do not bar themembersofthatsectfromformingtheirownunion.The recognition of the tenets of the sect should notinfringe on the basic right of selforganizationgrantedbytheConstitutiontoworkers,regardlessofreligiousaffiliation

Article244.Rightofemployeesinthepublicservice.

1. Governmentemployees’righttoorganize;limitations• Lawguaranteestogovernmentemployeestherighttoorganizeandto

negotiate,butnottherighttostrike• Arizalav.CA

o PD807 Civil Service as embracing every branch, agency,

supervision, and instrumentality of thegovernment, including every GOCC whetherperforminggovernmentalorproprietaryfunction.

The effect was seemingly to prohibit governmentemployees to strike for the purpose of securingchanges of their terms and conditions ofemployment, somethingwhich theywere allowedtodoundertheCivilServiceActof1959


o 1987Constitution Right to self‐organization shall not be denied to

governmentemployees TheStateshallguarantee therightsofallworkers

to self‐organization, collective bargaining andnegotiations, and peaceful concerted activities,includingtherighttostrikeinaccordancewithlaw

Workers shall be entitled to security of tenure,humaneconditionsofwork,anda livingwageandalso participate in policy and decision‐makingprocessesaffectingtheirrightsandbenefitsasmaybeprovidedbylaw

o CSCMemorandumCircularNo.6 The Commission enjoins, under pain of

administrative sanctions, all government officersand employees from staging strikes,demonstrations,mass leaves,walk‐outs and otherformsofmassactionwhichwillresultintemporarystoppageordisruptionofpublicservices.Toallowotherwise is to undermine or prejudice thegovernmentsystem

o EO180 The right of self‐organization does indeed pertain

to all employees of all branches, subdivisions,instrumentalities and agencies of the government,including GOCC with original charters; suchemployees shall not be discriminated against inrespect of their employment by reason of theirmembership in employees’ organizations orparticipation in the normal activities of theirorganization and their employment shall not besubject to the condition that they shallnot joinorshall relinquish their membership in theiremployees’organizations

This EO established the Public Sector Labor‐ManagementCouncil(PSLMC)

• Limitedpurposeo The right of government employees to form, join or assist

employees’ organizations of their own choosing is notregarded as existing or available for purposes of collectivebargaining,butsimply,forthefurtheranceandprotectionoftheirinterests

o The right of government employees to deal and negotiatewiththeirrespectiveemployers isnotquiteasextensiveasthatofprivateemployees

o Excluded from negotiation by government employees aretermsandconditionsofemploymentthatarefixedbylaw,itbeingonlythosetermsandconditionsnototherwisefixedbylaw that may be subject of negotiation between the duly

recognized employees’ organizations and appropriategovernmentauthorities

o Not negotiable are matters that require appropriation offunds and those that involve the exercise of managementprerogatives

o Considered negotiable are such matters as schedule ofvacation and other leaves, work assignment of pregnantwomen; recreational, social, athletic, and cultural activitiesandfacilities

• Nosigningbonuso EmployeesandofficersofSSSarenotentitledtothesigning

bonus provided for in collective negotiation agreementbecause the process of collective negotiations in the publicsector does not encompass terms and conditions ofemploymentrequiringtheappropriationofpublicfunds

• Exceptedemployeeso Excepted from EO 180 are members of the AFP, including

police officers, policemen, firemen and jail guards. Forreasons of security and safety, they are not allowed tounionize

o High level employees whose functions are normallyconsideredaspolicymakingormanagerial,orwhosedutiesareofahighlyconfidentialnatureshallnotbeeligibletojointheorganizationofrank‐and‐filegovernmentemployees

High level employee is one whose functions arenormally considered policy determining,managerial or one whose duties are highlyconfidentialinnature

A managerial function refers to the exercise ofpowerssuchas–

To effectively recommend suchmanagerialactions

To formulate or execute managementpoliciesanddecisions

To hire, transfer, suspend, lay‐off, recall,dismiss,assignordisciplineemployees

• Professorsasrankandfileemployeeso ProfessorsatUPwhoarenotexercisingmanagerialorhighly

confidential functionsarerank‐and‐fileemployeesandmayunionizeseparatelyfromthenon‐academicpersonnel

o UPv.FerrerCalleja W/Nprofessors,associateprofessorsandassistant

professors are high‐level or rank and fileemployees?NO.

They can’t be considered as exercising suchmanagerialorhighlyconfidentialfunctionsaswouldjustify their being categorized as highlevelemployees of the institution. They do not formulatepolicies,rules,andstandards.


W/N they and other employees performingacademic functions, should compromise abargaining unit distinct from that of the non‐academicemployees?YES.

The community or mutuality of interests test hasprovided the standard in determining the properconstituencyofacollectivebargainingunit.Inshort,the professors, associate and assistant professors ofUP are rankandfile employees. The full professors,associateprofessors,assistantprofessors,instructorsand the research, extension and professional staffmay, if so minded, organize themselves into aseparatecollectivebargainingunit.

• Righttostrikeo EO 180 concedes to government employees the right to

engage in concerted activities, including the right to strike.But those activities must be exercised in accordance withlaw

o Resolution of complaints, grievances and cases involvinggovernment employees is not ordinarily left to collectivebargainingorotherrelatedconcertedactivities,but toCivilService Law and labor laws and procedures wheneverapplicable

o Incaseanydisputeremainsunresolvedafterexhaustingallavailable remediesunderexisting lawsandprocedures, theparties may jointly refer the dispute to the Public SectorLabor‐ManagementCouncilforappropriateaction

o Termsandconditionsofemploymentinthegovernmentaregovernedby law, theemployees thereinshallnot strike forthepurposeofsecuringchangesthereof

2. Registration• Government employees’ organizations shall register with the Civil

ServiceCommissionandtheDOLE• ApplicationshallbefiledwiththeBLR• Applicationsmayalsobe filedwith theRegionalOfficesof theDOLE

which shall immediately transmit the said applications to the BLRwithin3daysfromreceipttherefrom

• Upon approval of the application, a registration certificate shall beissued to the organization recognizing it as a legitimate employees’organization

• Certificatesofregistrationshallbe jointlyapprovedbytheChairmanoftheCSCandSecretaryofDOLE

3. Certificationelectioningovernmentcorporation• Certification election to choose the union that will represent the

employees may be conducted by the BLR in a governmentcorporation,whethergovernedbytheLaborCodeortheCivilServicerules

• TradeUnionsofthePhilippinesandAlliedServicesv.NationalHousingCorporation(NHC)

o NHCisacorporationorganizedunderEO399ortheUniformCharterofGovernmentCorporations

o The Civil service now covers only GOCCs with original orlegislativecharters.There is, therefore,no impediment to theholdingofacertificationelectionamongtheworkersofNHCforitisclearthattheyarecoveredbytheLaborCode,theNHCbeingaGOCCwithoutanoriginalcharter.

o WhethertheemployeesofNHCarecoveredbytheLaborCodeor by the civil service laws, a certification election may beconducted.

• Electionofofficersingovernmentunionso Does the BLR have jurisdiction to call for and conduct the

electionofofficersofanemployee’sassociationinthepublicsectorsuchasthatattheMWSS?

Yes.BLRhasoriginalandexclusive jurisdictiononallinter‐unionandintra‐unionconflicts.

4. WhenPSLMCmayruleonlegalityofdismissal• Public Sector Labor‐Management Council has jurisdiction to hear

charges of unfair labor practices filed by government employeesagainsttheiremployer.PSLMCmayruleonULPanddismissal

• CSCmayadoptthe findingsof thePSLMCandordertheemployertoreinstatethedismissedemployees

5. Unionbustinginagovernmentagency,ULP• [Case regarding PLM fired faculty members; PLM v. CSC] had

complainantsnotbeenamong thoseactiveofficers and/ormembersofthePLMFacultyOrganization,andhadtheirqualifications,training,experience and performance rating not been impressive, the CSCwould have agreed that the termination or nonrenewal of thecontractsofcomplainantsdoesnotconstituteULP

• Eventemporaryemployeesmayorganizeo Article 277 (C) – any employee, whether employed for a

definite period or not, shall beginning on his first day ofservice, be considered an employee for purposes ofmembershipinanylaborunion

o Even temporary employees enjoy the basic right to formorganizationorassociationforpurposesnotcontrarytolaw

Article245. Ineligibilityofmanagerial employees to joinany labororganization; rightofsupervisoryemployees.

Article245A.Effectofinclusionasmembersofemployeesoutsidethebargainingunit.

1. Categoriesofemployees• Managerial• Supervisory

o Although supervisory employees shall not be eligible formembership in a labor organization of the rank‐and‐fileemployees,theymay,however,join,assist,orformseparatelabororganizationsoftheirown

• Rank‐and‐file


2. Ineligibilityofmanagers• Typesofmanagerialemployees

o Manager refers to anyone who is responsible forsubordinatesandotherorganizationalresources.

o Asaclass,theyconstitute3levelsofpyramid– First‐line managers – lowest level in an

organization at which individuals are responsiblefortheworkofothers

They direct operating employees only;theydonotsuperviseothermanagers

Oftencalledsupervisors Example:foreman

Middlemanagers–refertomorethanonelevel inanorganization

They direct the activities of othermanagers and sometimes also those ofoperatingemployees

Principalresponsibilitiesaretodirecttheactivities that implement theirorganizations’policiesandtobalancethedemands of their superiors with thecapacitiesoftheirsubordinates

Top managers – comparatively small group ofexecutives, topmanagement is responsible for theoverallmanagementoftheorganization

Establishes operatingpolicies and guidesthe organization’s interactions with itsenvironment

Example:CEO,Presidento Adistinctionexistsbetween–

Thosewhohavetheauthoritytodevise,implementandcontrol strategic andoperationalpolicies (topandmiddlemanagers)

Those whose task is simply to ensure that suchpolicies are carried out by the rank‐and‐fileemployees of an organization (first‐levelmanagers/supervisors); what distinguishes themfrom the rank‐and‐file is that they act in theinterestof theemployer insupervisingsuchrank‐and‐fileemployees

o Managerial employees may be said to fall into 2 distinctcategories:themanagersperseandthesupervisors

o (Pepsi‐Colacase:Routemanagersaremanagerialemployeesbecause they are responsible for the success of thecompany’s main line of business through management oftheirrespectivesalesteams)

• Constitutionalityoftheprohibitiono Whether or not the provision prohibiting managerial

employees from forming, assisting or joining any labororganizationisconstitutional?Yes.

o UnitedPepsicolaSupervisoryUnionv.Laguesma TherightguaranteedbyArticle III, Section8of the

Constitution is subject to the condition that itsexercise should be for purposes “not contrary tolaw”. There is a rational basis for prohibitingmanagerialemployeesfromformingorjoininglabororganizations: if thesemanagerialemployeeswouldbelong to or be affiliated with a Union, the lattermightnotbeassuredoftheirloyaltytotheunioninview of evident conflict of interests. The Union canalso become companydominatedwith thepresenceofmanagerialemployeesinUnionmembership.

o After all, thosewho qualify as top ormiddlemanagers areexecutives who receive from their employers informationthat not only is confidential but also is not generallyavailable to the public, or to their competitors, or to otheremployees

• Otheropinionso Chief Justice Davide: while he agrees that the route

managers are managerial employees, he believes, citingConcomdeliberations,thatArticle245isunconstitutional

o JusticePuno:debatesandproceedingsof theConstitutionalConventionareneverofbindingforce.Theymaybevaluablebutarenotnecessarilydecisive

Article 245 does not absolutely disqualifymanagerial employees from exercising their rightofassociation.Whatitprohibitsismerelytherighttojoinlabororganizations

Managerial employees may form associations ororganizations so long as they are not labororganizations

o Justice Vitug: partially agrees with Puno that it’s notunconstitutional.Buttohismind,theroutemanagersarenotmanagerialemployees;theyaresupervisors

o Azucena: problem of drawing the line between a managerand a supervisor will persist. The dividing line is still toounshapen and too situational to serve as an effectivestandingformulatoavertdisputes

3. Evolutionofsupervisors’righttoorganize• Unlikemanagers,supervisorscanunionize• Firstperiod:undertheIndustrialPeaceAct

o Supervisors could unionize separately from rank‐and‐fileworkers

o Supervisor was defined as any person having authority intheinterestofanemployer,tohire,transfer,suspend,lay‐off,recall, discharge, assign, recommend, or discipline otheremployees,orresponsiblytodirectthem,andtoadjusttheirgrievances or effectively to recommend such acts if, inconnectionwiththeforegoing,theexerciseofsuchauthority


is not of amerely routinary or clerical nature but requirestheuseofindependentjudgment

o While IndustrialPeaceActdefineda supervisor, it failed todefineamanagerormanagerialemployee.So the questionarose: did the word supervisor include manager? Couldmanagersunionize?

Yes.Managers are effectively included in the termsupervisor.

• Secondperiod:undertheLaborCodebeforeamendmento Term supervisor was replaced with term managerial

employeeo Managerialemployeeswerenotallowedtounionizeo Did managerial employee include supervisor? Were

supervisorsalsobannedfromunionizing? Yes. Supervisors are among the managerial

employeeswhocouldnotunionize.• Thirdperiod:underLaborCode,asamended

o Compromise formula: retain the ineligibility of managerialemployeesbutrevivetherightofsupervisoryemployeestounionize

o Thus, therightofsupervisoryemployees toorganizeunderthe IndustrialPeaceAct isoncemorerecognizedunder thepresentamendmentstotheLaborCode

4. Definitionsofmanagerandsupervisor• The power to decide onmanagerial acts is now separated from the

power to recommend those managerial acts, such as laying downpolicy, hiring or dismissing employees. A supervisor has the poweronly to recommendwhile a managerial employee has the power todecideanddothoseacts

• To make one a supervisor, the power to recommend must not bemerely routinary or clerical in nature, but requires the use ofindependentjudgment.Therecommendationis–

o Discretionaryorjudgmental(notclerical)o Independent(notadictationofsomeoneelse)o Effective (given particular weight in making the

managementdecision)• Similarly,aso‐calledmanager,nomatterhowhispositionistitled,is

not really a manager in the eyes of the law if he does not possessmanagerial powers (to lay down and execute management policiesand/or to hire, transfer, suspend, lay‐off, recall, discharge, assign ordisciplineemployees)

o An employee is notmanagerial if he does not take part inpolicy making but is given ready policies to execute andstandardpractices toobserve, thushaving little freedomofaction

• In short, a manager makes policy decisions or people decisions orboth;asupervisorrecommendsthosedecisions.

5. Testofsupervisorystatus• Test of supervisory or managerial status depends on whether a

personpossessesauthoritytoact intheinterestofhisemployerand

whether suchauthority isnotmerely routinaryor clerical innature,butrequirestheuseofindependentjudgment

• The factalone thatasupervisormakesrecommendationsas towhatmanagerial actions to take in disciplinary cases by itself does notmake one a managerial employee. It is more a question of howeffectivetherecommendationis

• It is thenatureofanemployee’s functionsandnotthenomenclatureortitlegiventohisjobwhichdetermineswhetherhehasarank‐and‐fileormanagerialrank.

• Amongthecharacteristicsofmanagerialrankare–o He is not subject to the rigid observance of regular office

hourso Hiswork requires the consistent exercise of discretion and

judgmentinitsperformanceo Output produced or the result accomplished can’t be

standardizedinrelationtoagivenperiodoftimeo He manages and customarily recognized department or

subdivisionof the establishment, customarily and regularlydirectingtheworkofotheremployeesthere

o He either has the authority to hire or discharge otheremployees or his suggestions and recommendations as tohiring and discharging, advancement and promotion orother change of status of other employees are givenparticularweight

o He is not paid hourly wages nor subjected to maximumhoursofwork

• Thepowertorecommendo Thepowertorecommend,inordertoqualifyanemployeeas

a supervisor,must not only be effectivebut should requiretheuseofindependentjudgment.Itshouldnotbemerelyofa routinary or clerical nature. (bakit paulitulit yung libro?!Haha.Lol.Hi.)

• Examplesofineffectiveorclericalrecommendation• Managersorsupervisors:undertheILOConvention

o ItisnotnecessarilyincompatiblewiththeILOConventiononFreedom of Association to denymanagerial or supervisoryemployees the right to belong to the same trade union asotherworkers,providedthat2conditionsaremet–

Such workers have the right to form their ownassociationtodefendtheirinterest

Categoriesofsuchstaffarenotdefinedsobroadlyas toweakentheorganizationofotherworkers inthe enterprise or branch of activity by deprivingthem of a substantial portion of their present orpotentialmembership

6. Segregationofrankandfileandsupervisors• Supervisory employees may form, join or assist separate labor

organizationsoftheirown,buttheyarenoteligibleformembershipina labor organization of the rank‐and‐file employees. Neither may arank‐and‐filejoinaunionofsupervisors


• The above policy is founded on fairness to the employer andemployees. It will be doubly detrimental to the employer if thesupervisors and rank‐and‐file, asmembers of only one union, couldtakeacommonstandagainsttheemployer

• Effectsofhavingmixedmembershipo Jurisprudence: to enforce the segregation, a union with

commingled membership was not a legitimate labororganization

o Nevertheless: Article 245‐A, as amended, states thatemployees that should not have been included inmembership are automatically deemed removed from thelistofmembership

• Affiliationofsupervisorsandrankandfileunionso Before,unionsinthesameenterprisecouldnotaffiliatewith

thesamefederationbecausetoallowitwouldbeanindirectviolationofthesegregationrule

o Now,theycan.7. Confidentialemployees

• Article245doesnotmentionconfidentialemployeesatall;undersaidarticle, therefore, confidential employeesdonot constitute adistinctcategoryofemployeesforpurposesoftherighttoself‐organize

• Confidentiality is not a matter of official rank, it is a matter of jobcontentandauthority

• Inprinciple,everymanagerialposition isconfidential–onedoesnotbecome a manager without having gained the confidence of theappointing authority. BUT not every confidential employee ismanagerial;hemaybeasupervisoryorevenarank‐and‐fileemployee

• Hence, the confidential employees’ inclusion in or exclusion from aunion, either of supervisors or rank‐and‐file, is a recurrentcontentiousissue

• Firstswing:inclusionamongrankandfileo Confidential rank‐and‐file employees should be included in

the bargaining unit. If the confidential employees are notmanagers,theycanunionizeandnoCBAprovisioncantakeawaythatright

• Secondswing:exclusionfromrankandfileo Court then upheld the validity of the agreement of the

parties excluding confidential employees from the CBAcoverage because they may become the source of undueadvantage

o By the nature of their functions, they assist and act in aconfidential capacity to, or have access to confidentialmattersofpersonswhoexercisemanagerialfunctionsinthefield of labor relations. As such, the rationale behind theineligibilityofmanagerialemployeesequallyappliestothem

• Thirdswing:inclusionamongsupervisorso Courtallowedtheconfidentials, if theyarenotmanagersor

rank‐and‐file,tojointhesupervisor’sunion• Fourthswing:inclusionamongmonthlypaidrankandfile

o Confidential employeeswere allowed to be included in theunionofthemonthly‐paidrank‐and‐filers

• Limitedexclusion;doctrineofnecessaryimplicationo NationalAssociationofTradeUnionsv.Torres

Bank branch managers/cashiers/etc are notmanagers but only supervisors. At the same time,they are confidential employees. A confidentialemployee is one entrusted with confidence ondelicatematters, orwith the custody, handling orcare and protection of the employer’s property.Under the doctrine of necessary implication,confidentialemployeesaresimilarlydisqualifiedasmanagerialemployees(Article245)

o The doctrine of necessary implication means that what isimpliedinastatuteisasmuchapartthereofasthatwhichisexpressed.

o Conclusion that: confidential employees, likemanagers, arenoteligibletoform,join,orassistlabororganizations

• The Metrolab and Meralco Summations: exclusion frombargainingunitandclosedshopclause

o Confidential employees should be exempted not only fromthe closed‐shop provision of the CBA but also frommembershipintherank‐and‐filebargainingunit

o Metrolabv.RoldanConfesor Metrolab argues that executive secretaries of the

general manager, and other managers anddirectors,whowereallmembersofthecompany’smanagement committee, should not only beexempted from the closed‐shop provision butshould also be excluded from membership in thebargainingunitofrank‐and‐fileemployeesbecausethose executive secretaries were confidentialemployees,havingaccesstovitallaborinformation

SCsidedwithMetrolab.Jurisprudencehasextendedthe prohibition to confidential employees or thosewho by reason of their positions or nature ofworkarerequiredtoassistoractinafiduciarymannertomanagerial employees, hence, are likewise privy tosensitiveandhighlyconfidentialrecords

Confidential employees can’t be classified as rankandfile. The nature of employment of confidentialemployees is quite distinct from the rankandfile,thus,warrantingaseparatecategory

• Whoareconfidentialemployees?o They assist and act in a confidential capacity to, or have

access to confidential matters of, persons who exercisemanagerialfunctionsinthefieldoflaborrelations

o Thosewhobyreasonoftheirpositionsornatureofworkarerequiredtoassistoractinafiduciarymannertomanagerial


employees, and hence, are likewise privy to sensitive andhighlyconfidentialrecords.

• Thelabornexuso “Inthefieldoflaborrelations”isimportant!Itstresseslabor

nexus–confidentialityofthepositionshouldrelatetolaborrelationsmatters

o San Miguel Corp. Supervisors and Exempt Union, et al v.Laguesma

Confidentialemployeesarethose– Whoassistoractinaconfidentialcapacity Topersonswho formulate,determine,and

effectuatemanagementpoliciesinthefiledoflaborrelations

Thesetwocriteriaarecumulativeandbothmustbemetifanemployeeistobeconsideredaconfidentialemployee

Exclusion frombargainingunits broad rationalebehind this rule is that employees should not beplaced inaposition involvingapotential conflictofinterest

Granting arguendo that an employee has access toconfidential labor information but such is merelyincidentaltohisdutiesandknowledgethereofisnotnecessary in the performance of his duties, saidaccess does not render the employee a confidentialemployee.

• NewCBAmayincludeemployeesexcludedfromoldCBA;expiredCBAmaybemodified,notjustrenewed

o Regardless of the swinging rulings, the employer and theunion in an enterprise may negotiate and agree whom tocover in their CBA. And they are free to change theiragreement:peopleexcludedbeforemaybeincludednow,orvice‐versa

8. Securityguardsmayjoinrankandfileorsupervisorsunion• Old rules: security guards were barred from joining a labor

organizationoftherank‐and‐file• Now:theymayfreelyjoinalabororganizationoftherank‐and‐fileor

thatofthesupervisoryunion,dependingontheirrank9. Workersinexportprocessingzones

• ExportprocessingzonesarepartofPHLterritory.Tothemtherefore,applieswithundiminishedforcetheConstitutionthatguaranteestheworkers rights toorganize, to strikeandso forth.Thezoneworkerscannotbedeniedtheseconstitutionalrights

Article246.Nonabridgmentofrighttoselforganization

1. Conceptoftherighttoselforganization• Self‐organization(S.O.)includes–

o Therighttoform,joinorassistlabororganizationso Righttoengageinlawfulconcertedactivities

• Right to form labor organization is twin to the right to engage inconcerted activity. Such group action can similarly be for collectivebargainingpurpose,butitcansimplybeforaidandprotectionofthemembers(protestaction;kilosprotesta)

• Groupaction isnotnecessarily awork stoppageor strikebecause itmaybedoneduringoff‐hours.Ifitisastrike,therestrictionsinArticle264shouldbeobserved

• Labor organization entitled to protection does not have to be aregistered organization. And it does not have to be the bargainingunion

• If unregistered, it does not have a right to represent its membersbecauseitisnotalegalperson

• Note that the right to S.O. is granted not only to employees but toworkers,whetheremployedornot

• No person – inside or outside government, employer or non‐employer, unionist or non‐unionist – may abridge these rights. IfabridgedintheworkplaceULP

TitleVI:ULP

ChapterI:Concept

Article247.Conceptofunfairlaborpracticeandprocedureforprosecutionthereof.

1. Conceptofunfairlaborpractice• ULP–doesnotmeananunfairpracticebylaborbutapracticeunfair

to labor,althoughtheoffendermayeitherbeanemployerora labororganization

• Article 246 – it is unlawful for any person to restrain, coerce,discriminateagainstorundulyinterferewiththeexerciseoftherighttoS.O.

• The victim of the offense is not just theworkers as a body and thewell‐meaningemployerswhovalue industrialpeace,buttheStateaswell

o Hence, ULP is a crime which carries civil and criminalliabilities

• ULP, when committed by the employer, commonly connotes anti‐unionism

• Elementso Employer‐employee relationship between the offender and

theoffended ULP is negation of, a counteraction to the right to

organize which is available only to employees inrelationtotheiremployer


o ActdoneisexpresslydefinedintheCodeasanactofULP Prohibited acts are all related to theworkers S.O.

right and to the observance of the CBA, exceptdismissal or prejudicing an employee for givingtestimony

Assuch,noteveryunfairactisULP• PrejudicetopublicinterestnotanelementofULP

o ShowingofprejudicetopublicinterestisnotarequisiteforULPchargestoprosper

2. ProsecutionofULP• ULPhascivilandcriminalaspect

o Civil may include liability for damages and these may bepasseduponbyalaborarbiter

o To prosecute ULP as criminal offense is not possible untilafter finality of judgment in the labor case, finding that therespondent indeed committedULP.But such judgmentwillnot serve as evidence of ULP in the criminal case; thecriminal charge must be proved independently from thelaborcase

o Criminal charge falls under concurrent jurisdiction of theMunicipalorRegionalTrialCourt

o Penalty imposed upon guilty officers of a corporation,partnership, association or entity. If committed by a labororganization, the parties liable are those mentioned inArticle249.

o ULPprescribesinoneyear

ChapterII:UnfairLaborPracticesofEmployers

Article248.Unfairlaborpracticesofemployers.

1. ConditionsprecedenttoULPcharge• Beforeanemployeemaybeconsideredaggrievedbyanallegedunfair

laborpractice(ULP)byanemployer,itmustbedemonstrated,o That the injured party comes within the definition of

“employee”o The act charged asULPmust fall under theprohibitions of

Article248(actsoftheemployer)or249(actsoftheunion)• Marianov.RoyalInteroceanLines

o Mariano,astenographer‐typist,sentalettertothemanagingdirectors of the company complaining about the PHLmanager’s inconsiderate anduntactful attitude towards theemployeesandclientsofthecompany.Companysidedwiththemanager.Marianowasdismissed

o Consideringthattheemployee’sdismissal,becauseofchargesagainst the manager is not connected with or necessarilyarising fromunionactivities, the dismissal did not constituteULP. Despite the employees’ right to selforganization, the

employer still retains his inherent right to discipline hisemployees,hisnormalprerogativetohireordismissthem

o Nevertheless, the dismissal was without case because herinefficiency is belied by the successive increases of hercompensation

• Historicalevidenceofthelink• The enumeration of ULP in the Code does not mean an exhaustive

listing of ULP incidents. The code leaves to the court the work ofapplying the law’s general prohibitory language in light of infinitecombinationsofeventswhichmaybechargedasviolativeofitsterms

2. ILOConventionNo.98• Said convention frowns upon anti‐union discrimination and

interference3. NoULP:illustrativeinstancesofvalidexerciseofmanagementrights

• The law on ULP is not intended to deprive the employer of hisfundamentalrighttoprescribeandenforcesuchrulesashehonestlybelieves to be necessary to the proper, productive and profitableoperationofhisbusiness

• Where,however,anemployerdoesviolatetheActandisfoundguiltyof the commission of an “ULP”, it is no excuse that his conductwasunintentionalandinnocent

• Personnelmovementso As a rule, it is the prerogative of the company to promote,

transfer or even demote its employees to other positionswhen the interests of the company reasonably demand it.Unless there are instances which directly point tointerference by the companywith the employee’s rights toS.O., the transfer of an employee should be considered aswithintheboundsallowedbylaw

• Acceptanceofmassresignationo AcceptanceofavoluntaryresignationisnotULPo Aprotest retirement/resignation isnotaconcertedactivity

whichisprotectedbylawo Neither employers nor employees should be allowed to

make of judicial authority a now‐you’ve‐got‐it‐now‐you‐don’t(lol)affair.

• Grantofprofitsharingbenefitstononunionmemberso Managementhastheprerogativetoregulate,accordingtoits

discretion and judgment, all aspects of employment. Suchmanagement prerogativemaybe availed ofwithout fear ofany liability so long as it is exercised in good faith for theadvancement of the employers’ interest and not for thepurpose of defeating or circumventing the rights ofemployees under special laws or valid agreement and arenotexercisedinamalicious,harshmanner

o WiseandCo,Inc.v.WiseandCo.,Inc.EmployeesUnion Whenthemanagementintroducedaprofit‐sharing

scheme for its managers and supervisors, Unionwrotemanagementtoaskthattheunionmembersbe allowed to participate. Management denied


becausethatwasn’tintheCBA.Later,managementdistributed profit‐sharing benefit not only tomanagersandsupervisorsbutalsotoallrank‐and‐file employees not covered by the CBA becausetheywereexcludedfromtheiragreeddefinitionofbargainingunit

Whether the grant by management of profit‐sharing benefits to its employees who are non‐unionmembersisdiscriminatoryagainsttheunionmembers? Is the act discriminatory amounting toULP?No.

There can be no discrimination committed by theemployeras the situationof theunion employees isdifferent from that of the nonunion employees.Discrimination per se is not unlawful. There can beno discrimination where the employees concernedarenotsimilarlysituated.

Thegrantof theemployerofprofitsharingbenefitsto the employees outside the bargaining unit fallsunder the ambit of its managerial prerogative. It’sprovidedintheCBAeven.

However, the Court serves notice that it will nothesitatetostrikedownanyactoftheemployerthattendstobediscriminatoryagainstunionmembers

• Forcedvacationleaveo Where the vacation leavewithoutpay,which the employer

requiresemployeestotakeinviewoftheeconomiccrisis,isneither malicious, oppressive or vindictive, ULP is notcommitted

o PhilippineGraphicArts,Inc.v.NLRC Petitioner corporation was forced by economic

circumstances to require its workers to go onmandatoryvacation leave inbatches.Theworkerswerepaidwhileon leavebutthepaywaschargedagainst their respective earned leaves. EmployeesfiledcomplaintforULP

No ULP. There is basis for the petitioner’scontentionsthatthereductionofworkschedulewastemporary, that it was taken only after notice andconsultationwiththeworkers,thataconsensuswasreachedonhowtodealwithdeterioratingeconomicconditions. Likewise, the forced leave was enforcedneitherinamalicious,harsh,oppressive,vindicativenor wantonmanner, or out of malice or spite. Thedecision to resort to forced leaves was amanagementprerogative.

• Issuanceofrulesorpolicyo SanMiguelBrewerySalesForceUnionv.OpleandSMC

SMCintroducedamarketingscheme(CDS)knownas Complementary distribution system where its

beer products were offered for sale directly towholesalersthroughSMC’ssalesoffices.UnionfiledforULPclaiming that theCDSwascontrary to theexisting marketing scheme where route salesmensold their stocksofbeer.Theyallege that theCDSviolatedtheCBAbecausetheCDSwouldreducethetakehomepayofthesalesmen

No ULP. The plan was to improve efficiency andeconomy and at the same time gain profit to thehighest. Every business enterprise endeavors toincrease its profits. In the process, it may adopt ordevisemeansdesignedtowardsthatgoal.

• Takingactionagainstslowdowno Employeeshavetherighttostrike,buttheyhavenorightto

continue working on their own terms while rejecting thestandards desired by their employer. Hence, an employerdoes not commit an ULP by discharging employees whoengage inaslowdown,even if theirobject isapay increasewhichislawful

4. Determinationofvalidity• Determiningthevalidityofanemployer’sactinvolvesanappraisalof

hismotives• It is for the NLRC, in the first instance, to weigh the employer’s

expressed motive in determining the effect on the employees ofmanagement’sotherwiseequivocalact

5. FirstULP:interference(Article248[a])• [Insummarizedform,the9ULPactsofanemployerare:

o Interferenceo “Yellowdog”conditiono Contractingouto Companyunionismo Discriminationfororagainstunionmembershipo Discriminationbecauseoftestimonyo Violationofdutytobargaino Paidnegotiationo ViolationofCBA]

• Outright and unconcealed intimidation is the most obvious form of“interference”. But in the great preponderance of cases, theemployer’seffortsaremuchmorecovertandaregenerallydisguisedtoescapedetection

• Interferencewithemployeeorganizationrightswasfoundwherethesuperintendent of the employer threatened the employees withcutting their pay, increasing rent, or closing the plant if theysupported the union and where the employer encouraged theemployeestosignapetitionrepudiatingtheunion

• Dabuet,etal.v.RochePharmaceuticals,Inc.o Petitioners‐officers of Roche Products Labor Union, wrote

the company expressing the grievances of the union andseekingaformalconferencewithmanagementregardingtheprevious dismissal of the union’s president and VP. At a


meeting, the company’s GM, instead of discussing theproblems affecting the labor union and management,allegedlyberated thepetitioners forwriting that letter andcalled the letter and the person who prepared it “stupid”.Unionfiledcaseforgraveslander

o Company had committed ULP in dismissing the petitionerswithout just and valid cause. Their dismissal, under thecircumstances, amounted to interference with, and restraintorcoercionof, thepetitioners in theexerciseof theirright toengage in concerted activities for their mutual aid andprotection.

• Interrogationo Inorderthatthequestioningofanemployeeconcerninghis

unionactivitieswouldnotbedeemedcoercive, Theemployermust communicate to theemployee

thepurposeofthequestioning, Assurehimthatnoreprisalwouldtakeplace, Andobtainhisparticipationonavoluntarybasis. Questioningmustalsooccurinacontextfreefrom

employerhostility tounionorganizationandmustnotitselfbecoerciveinnature

• ULPevenbeforeunionisregisteredo Managementcontendedthat itcouldnotcommitULPwhile

therewasnounionyet.Thiscontention,accordingtotheSC,iswithoutmerit.TheLaborCodeconsidersitanunfairlaborpractice for an employer to initiate, dominate, assist orotherwise interferewith the formationoradministrationofany labor organization, including the giving of financial orother support to it. In short, an employer who interferedwith the right to self‐organization before the union isregisteredcanbeheldguiltyofULP

• Prohibitingorganizingactivitieso The following are examples of unlawful acts to discourage

membershipinalabororganization Dismissal of unionmembers upon their refusal to

give up their membership, under the pretext ofretrenchmentduetoreduceddollarallocations

Refusal over a period of years to give salaryadjustments according to the improved salaryscalesintheCBA

Dismissal of an old employee allegedly forinefficiency, on account of her having joined aunionandengaginginunionactivities

o CLLGEGGochangoWorkersUnionv.NLRC The respondent company deserves our strongest

condemnation for ignoring the petitioners’ requestfor permission for some time out to attend to thehearingoftheirpetitionbeforethemedarbiter.Itisnot only an act of arrogance, but a brazeninterferenceaswell,withtheemployees’righttoself

organization, contrary to the prohibition of theLaborCodeagainstULP.

• Violenceorintimidationo Violationshavebeen foundwheretheemployer threatened

employeesfavoringtheunionwithforceorviolence• Espionageandsurveillance

o Employees come under threat of economic coercion orretaliation

• Economicinducementso Itisawell‐settledrulethatwhilearepresentationelectionis

pending, theconferralofemployeebenefits forthepurposeofinducingtheemployeestovoteagainstaunionisunlawful

• Employer’sexpressionofopinion;totalityofconductdoctrineo Doctrine holds that the culpability of employer’s remarks

was to be evaluated not only on the basis of theirimplications, but against the background of and inconjunctionwithcollateralcircumstances

o The InsularLifeAssuranceCo.,Ltd.,EmployeesAssociationv.InsularLifeAssuranceCo.

Company president sent individual letters tostriking employees urging them to abandon theirstrike with a promise of free coffee, and movies,and paid overtime. He said that if they failed toreturn to their jobs, they might be replaced.Company‐hired men, in addition, broke into thepicket line, resulting in violence. When the strikewas over, company refused to readmit unionistsfacingcriminalcharges

Individualsolicitingurgingemployeestoceaseunionactivity or cease striking constitutes ULP. Companywas also guilty of strikebreaking and/or unionbusting (by attempting to bribe with coffee, etc) isULP.

The letters of the company president to theindividual strikers should not be considered bythemselves alone but should be read in the light ofthe preceding and subsequent circumstances. Theletter should be interpreted according to the“totality of conduct doctrine,” whereby theculpability of an employer’s remarks has to beevaluated not only on the basis of their implicitimplications, but in conjunction with collateralcircumstances.

• MasslayoffamountingtoULPo Madrigal&Company,Inc.v.Zamora

Madrigal Central Office Employees Union soughtrenewalof itsCBA. ItproposedawageincreaseofP200amonth,anallowanceofP100amonthandother economic benefits. Then, company reduceditscapitalstock.


The petitioner’s capital reduction efforts were, tobeginwith, a subterfuge, a deception as itwere, tocamouflagethefactthatithadbeenmakingprofits,and consequently, to justify the mass layoff in itsemployeeranks.

• LockoutorclosureamountingtoULPo Alockout,actualorthreatened,asameansofdissuadingthe

employeesfromexercisingtheirrightsisclearlyanULPo However, to hold an employer who actually or who

threatenstolockouthisemployeesguiltyofaviolation,theevidence must establish that the purpose thereof was tointerferewiththeemployees’exerciseoftheirrights

• Saleinbadfaitho MoncadaBijonFactory v. CIRandMoncadaUnitedWorkers’

Union Kim, the owner of the factory, called the union

members to a meeting. He requested them toresign from the union, revert to their workinghours and withdraw overtime claims. This wasrejected. 11 days later, Kim executed a deedpurporting to convey the factory to Yu Guat.Membersoftheunionwerenotreadmitted.

Sale of the factory was simulated and a deviceresortedmerelytogetridoftheemployeeswhoweremembersoftheunion.

o Cruzv.PAFLU Workers in the factory formed a union, PAFLU.

Company claimed to have an existing CBA withanother union, PTGWO. PAFLU won thecertification election. Factory was sold to Cruz,employeemembersofPAFLUweredismissed

The sale of a business enterprise to avoid the legalconsequencesofanULPisnecessarilyattendedwithbad faith and both the vendor and the vendeecontinuetobeliabletotheaffectedworkers

o It is irrational to suppose that a purchaser of amanufacturing enterprise is not aware of the labor‐managementsituationinthefirmhebought

• Assumptionofobligationsbynewcompanyo Philippine LandAirSeaLabor Union (Plaslu) v. Sy Indiong

RiceandCornMill PLASLU and 7 other persons filed a ULP case

against Sy Indong and Tubod Labor Union (TLU).Complainants allege that TLU threatened themwithbodilyharmunlesstheygaveuptheirjobsasworkers of Sy Indiong. They also alleged that SyIndiongdiscriminated against themby refusing toadmitthemtowork.

While casewas pending, Sy Indong sold its assetsto Sen Chiong Rice and Corn Mill which wasorganizedontheverysamedayofthesale

The allegations of Sy Indong of bankruptcy isuntenable.Thesecircumstances,whenconsidered inrelation to the fact that the ULP case had beenpendingintheCIR,leadtonootherconclusionthanthattheorganizersofSenChiongwereawareofsaidcase when they established the company andacquired the assets, and that they either organizedSenChionginanattempttorelieveSyIndongoftheconsequences or effects of the present litigation oracquired suchassetsassuming the riskofhaving tobeartheliabilitiesorpartthereofthatsaidlitigationmayeventuallyentail.

• Successoremployer;piercingthecorporateveilo Legal fiction that a corporation is an entitywith a juridical

personality separateanddistinct from itsmembersmaybedisregarded.Thedoctrineapplieswhenthecorporatefictionis used to defeat public convenience, justifywrong, protectfraud,ordefendcrime,etc.

o H.AronsonCo.,Incv.AssociatedLaborUnion LaborunionproposedaCBA.Managementrefused.

Union staged a strike. Management decided todissolve the corporation, thereby terminating theemployment of all the employees. Managementformedsomeothercorporation

Dissolution of the corporation and the subsequentincorporationofnewoneswerepartandparcelofaplan to accomplish the dismissal of the individualrespondents.

6. SecondULP:“yellowdog”condition(Article248[b])• Yellowdogcontractisapromiseexactedfromworkersasacondition

ofemployment that theyarenot tobelong to,orattempt to foster,aunionduringtheirperiodofemployment

• Typical yellow dog contract is an at‐will employment agreementwhich contains, in addition to the usual provisions for employmentthefollowingprovisions–

o Arepresentationbytheemployeethatheisnotamemberofalaborunion

o Apromisebytheemployeenottojoinalaboruniono Apromisebytheemployeethat,uponjoiningalaborunion,

hewillquithisemployment• “Onlyayellowdog,criedtheunionists,wouldsignsuchacontract”• SuchacontractisanULPbyexpressprovisionofthelaw

7. ThirdULP:contractingout(Article248[c])• ULP for an employer to contract out services or functions being

performed by union members when such act will interfere with,restrainorcoerceemployeesintheexerciseoftheirrighttoS.O.


• Notethatcontractingout,itself,isNOTULP;BUTitistheillintentionthatmakesitso

o Contracting out is ULP where motivated by a desire toprevent his employees from organizing and selecting acollective bargaining representative, rid himself of unionmen,orescapehisstatutorydutytobargaincollectivelywithhisemployees’bargainingrepresentative

o BUT an employer is NOT guilty of an ULP in contractingworkoutforBUSINESSREASONS

• InManila Electric Company v. Quisumbing and MEWA, Secretary ofLabor imposed upon management the duty to consult the unionbefore implementing a job contracting out that would last for 6monthsormore.Courtinvalidatedsuch,whilenotingthatcontractingoutissubjecttolegallimitations

o Companycandetermineinitsbestbusinessjudgmentwhetheritshouldcontractouttheperformanceofsomeofitsworkforas long as the employer is motivated by good faith, and thecontractingoutmustnothavebeenresortedtotocircumventthe law or must not have been the result of malicious orarbitraryaction

• ContractingoutrestrictedbyCBAo ShellOilWorkers’Unionv.ShellCompanyofthePhilippines

Shell dissolved its security guard section andreplaced it with an outside agency, claiming thatsuch act was a valid exercise managementprerogative

Issue:Whether the then existing CBA running forthree years constituted a bar to such decisionreachedbymanagement?YES.

TherewasspecificcoverageconcerningthesecurityguardsectionintheCBA.Itwasthusanassuranceofsecurityoftenure,atleast,duringthelifetimeoftheagreement.TheShellCompanydidnothavetoagreeto such a stipulation. There can be no justificationfor Shell’s insistence on pushing through its projectof such dissolution without thereby incurring aviolationoftheCBA.

• Runawayshopo Runaway shop is an industrial plant moved by its owners

from one location to another to escape union laborregulationsorstatelaws

Termisalsousedtodescribeaplantremovedtoanew location in order to discriminate againstemployees at the old plant because of their unionactivities

Whereaplantremoval is forbusinessreasonsbutthe relocation is hastened by anti‐unionmotivation,theearlyremovalisanULP

o Employer may legitimately blunt the effectiveness of ananticipated strike by stockpiling inventories, readjusting

contract schedules or transferring work from one plant toanother, even though he thereby makes himself virtuallystrikeproof

o Samenessofbusinessisnotreasonenoughtoshowrunawayshoptopiercetheveilofseparatecorporateentity

o ComplexElectronicsEmployeesAssociationv.NLRC Complex Electronics Corporation was

subcontractorofelectronicproducts.Rank‐and‐fileworkers make up the union‐petitioner. Complexhad to close down the operations of the Lite‐OnLine. Company promised that it would follow thelawbygivingonemonthnoticeandretrenchmentpay of half‐month pay for every year of service.Union demanded retrenchment pay of 1 monthsalary for every year of service. Complex refused.Union conducted a strike. In the evening, themachinery, equipment and materials used forproduction were pulled out from the companypremisesandtransferredtothepremisesofIonicsCircuit, Inc. The next day, Complex closedoperations. Union claimed that pull‐out of themachinery,equipment,materials,whichresultedtothe sudden closure of the company = ULP. Unionclaims that Complex and Ionics have the samepresident and Board of Directors. It claims thatbusinesshasnotceasedatComplexbutwasmerelytransferredtoIonics.

No runaway shop in this case. A runaway shop isone wherein the employer moves its business toanotherlocationorittemporarilyclosesitsbusinessfor antiunion purposes. A runaway shop in thissense,isarelocationmotivatedbyantiunionanimusrather than for business reasons. Here, Ionics wasnotmerelysetupforthepurposeoftransferringthebusiness of Complex. At the time the labor disputearose,Ionicswasalreadyinbusiness.Theunionfiledto show that the primary reason for the closure oftheestablishmentwasdue to theunionactivitiesofthe employees. The mere fact that one or morecorporationsareownedorcontrolledbythesameorsingle stockholder is not sufficient ground fordisregarding separate corporate personalities. Theclosurewasnotmotivatedbytheunionactivitiesoftheemployees,butratherbynecessitysinceitcannolonger engage in production without the muchneededmaterials,equipment,machinery.

8. FourthULP:companydominationofunion(Article248[d])• Dominationofalaborunionusuallymanifestsinthefollowingforms–

o Initiationofthecompanyunionidea


Outright formation by the employer or hisrepresentatives

Employee formation an outright demand orinfluencebyemployer

Manageriallymotivatedformationbyemployeeso Financialsupporttotheuniono Employerencouragementandassistanceo Supervisoryassistance

• ProgressiveDevelopmentCorpv.CIRo Araneta Coliseum Employees Association filed a ULP case

againstProgressiveDevelopmentCorporation(PDC)andtheProgressive Employees Union (PEU). Complainants allegethat they were dismissed because they refused to resignfromtheACEAandtoaffiliatewiththePEUwhichwasbeingaidedandabettedbyPDC.

o Dismissal because of union activities and not because of thecompany’s alleged losses was adequately proven. Theemployer’s act constituted ULP. Apparently, PEU nevercollecteddues fromitsmembersandallmembersweremaderegularemployeesandwereretainedintheconstructionunitofPDC.PEwasorganizedtocamouflagethePDC’sdislikefortheACEAandtostaveofthelatter’srecognition.

9. FifthULP:discrimination(Article248[e])• What the lawprohibits isdiscrimination toencourageordiscourage

membership in a labor organization. Where the purpose is toinfluence the union activity of employees, the discrimination isunlawful.

• Discriminationisnotthesameasdifferentiationorclassification–itiscommon for management to classify jobs and grant them varyinglevelsofpayorbenefitspackage.Thesearevaliddifferentiationsthatrecognizedifferencesinjobrequirementsorcontributions

• To constitute a ULP, the discrimination committed by the employermustbeintheregardtothehireortenureofemploymentoranytermorconditionofemploymenttoencourageordiscouragemembershipinanylabororganization

• Discouraging membership in a labor organization include not onlydiscouraging adhesion to union membership but also discouragingparticipationinunionactivitiessuchasalegitimatestrike

• Discriminationinworkquota Pharmaceutical company increased sales quota of

union president and VP to 400 and 300%respectively. No valid explanation for markeddifference from other quotas. Company displayedanti‐union attitude. The uneven application of themarketingplanbythecompanyispatentlyanactofdiscrimination

• Discriminationinbonusallocationorsalaryadjustmentso There isunfairandunjustdiscrimination in thegrantingof

salaryadjustmentswheretheevidenceshowsthat–

Management paid the employees of the unionizedbranch

Where salary adjustments were granted toemployees of one of its nonunionized branchesalthoughitwaslosinginitsoperations

Total salary adjustments given every ten of itsunionized employees would not even equal thesalary adjustments given one employee in thenonunionizedbranch

• Discriminationinlayoffordismissalo Even where business conditions justified a layoff of

employees,ULPintheformofdiscriminatorydismissalwerefound where only unionists were permanently dismissedwhilenonunionistswerenot.

o BataanShipyardandEngineeringCo.v.NLRC National Federation of Labor Unions is union of

petitioner‐BASECO’semployees.Company filed forretrenchment with the NLRC. All of those soretrenched happened to be officers andmembersoftheNAFLU

It is not disputed that retrenchment undertaken bytheCompanyisvalid.BUT,themannerinwhichtheprerogative is exercised should not be tainted withabuse of discretion. Company had indeed beendiscriminatory in selecting theemployeeswhoweretoberetrenched.Companyhadnovalidexplanationastothematter.

• Discriminationinregularizationo Only reason for such is the fact that the employees were

affiliatedwiththeunionwhichapparentlydoesnothavethesympathyoftheiremployer

• Discriminationbyblacklistingo Blacklist is a list of persons marked out for special

avoidance, antagonism or enmity on the part of thosewhoprepare the list, or those among whom it is intended tocirculate, aswhere a tradeunion ‘blacklists’workmenwhorefusetoconformtoitsrules,orwherealistofinsolventoruntrustworthypersonsispublishedbyacommercialagencyormercantileassociation

o Initsbroadsense,inthesenseoftheemployer’scirculatinga list of former employees of notorious laziness ornegligence in performance of duties, it may be a propermeasurefortheprotectionofemployers.Unlesstheactionofthe employers in passing communications amongthemselves for thepurposeofexcludingunwantedworkersfrom employment, constitutes a libel or a slander, theexcludedemployeepossessesnorightofactionbecausetheemployers community of interest acts both to justify thecombinationandtoprivilegethecommunication

• Indirectdiscrimination


o ULP for an employer to dismiss or discriminate against anemployee for having filed charges or for having given orbeingabouttogivetestimony

This is to assure absolute freedom of theemployees to establish to establish labororganizations and unions, as well as to properchargesforviolationsofthelaborlaws

o Whatisprohibitedtobedonedirectlyshallnotbeallowedtobeaccomplishedindirectly

o ThefollowinghavebeenheldULP– Dismissalofalaboreronaccountofunionactivities

ofhisbrother Discharge of an employee due to the union

activitiesofthewife Dischargeofawifeduetotheunionactivitiesofthe

husband• Testofdiscrimination

o Forthepurposeofdeterminingwhetherornotadischargeisdiscriminatory,itisnecessarythattheunderlyingreasonforthedischargebeestablished

o Thefactthatalawfulcausefordischargeisavailableisnotadefensewhere theemployee isactuallydischargedbecauseofhisunionactivities. If thedischarge isactuallymotivatedbya lawfulreason,thefactthattheemployeeisengagedinunionactivitiesatthetimewillnotlieagainsttheemployerandpreventhimfromtheexerciseofhisbusinessjudgmenttodischargeanemployeeforcause

o Where circumstances establish a discriminatorymotive onthepartoftheemployer,theassignmentofajustcausewillbeunavailingifitcanbeestablishedthatthetrueandbasicinspiration for the employer’s act is derived from theemployees’unionaffiliationsoractivities,theassignmentbythe employer of another reason,whatever its semblance ofvalidity,isunavailing

• Constructivedischargeo Where the employer prohibits employees from exercising

theirrights,onpainofdischarge,andtheemployeequitsasa result of the prohibition, a constructive discharge occurs,whichmayberemediedinanULPproceeding

o Employee was held to be constructively discharged whenshe quit her job because of discriminatory assignmentrequiring heavy liftingworkwhich the employer knew shewasphysicallyunabletoperform

• Dischargeduetounionactivity,aquestionoffacto Questionofwhetheranemployeewasdischargedbecauseof

hisunionactivitiesisessentiallyaquestionoffact• Validdiscrimination:unionsecurityclause

o There is a form of encouragement of union membershipwhich is not considered ULP – where management andunionenterintoaCBAcontainingaunionsecurityclause

o Aunionsecurityclauserequiresmembershipintheunionsothat an employee may retain his job and the union’sexistenceisassured

o Union security is a generic term which is applied to andcomprehends “closed shop,” “union shop,” “maintenance ofmembership”oranyotherformofagreementwhichimposesupon employees the obligation to acquire or retain unionmembershipasaconditionaffectingemployment

It is indeedcompulsoryunionmembershipwhoseobjective is to assure continued existence of theunion

o In a sense, there is discriminationwhen certain employeesareobligedtojoinaparticularunion.Butitisdiscriminationfavoringunionism.Itisavalidkindof“discrimination”

• Kindsofunionsecurityagreementso Closed‐shop: only union members can be hired by the

companyandtheymustremainasunionmemberstoretainemploymentinthecompany

o Union shop: nonmembers may be hired, but to retainemployment must become union members after a certainperiod. The requirement applies to present and futureemployees

o Modified union shop: employees who are not unionmembersatthetimeofsigningthecontractneednotjointheunion,butallworkershiredthereaftermustjoin

o Maintenanceofmembershipshop:noemployeeiscompelledtojointheunion,butallpresentorfuturemembersmust,asa conditionof employment, remain in good standing in theunion

o Exclusive bargaining shop: union is recognized as theexclusive bargaining agent for all employees in thebargainingunit,whetherunionmembersornot

o Bargaining for members only: union is recognized as thebargaining agent only for its own members (But seePhilippineDiamondHotelcasecitedunderArticle242)

o Agency shop: agreement whereby employees must eitherjoin the union or pay to the union as exclusive bargainingagentasumequaltothatpaidbythemembers

Directed against “free rider” employees whobenefit from union activities without contributingfinanciallytounionsupport

Prevents a situation where nonunion membersenrich themselves as the expense of unionmembers

Othertermismaintenanceoftreasuryshop• Validityofclosedshopagreement

o Closed shop is a valid form of union security, and suchprovisioninaCBAisnotarestrictionoftherightoffreedomofassociation


o Purposesofunionism/self‐organizationcouldbethwartedifevery worker were to choose to go his own separate wayinstead of joining his co‐employees in planning collectiveactionandpresentingaunited frontwhentheysitdowntobargainwiththeiremployers

o As such, the law has sanctioned stipulations for the unionshop and the closed‐shop as a means of encouraging theworkers to join and support the labor union of their ownchoice as their representative in the negotiation of theirdemands and the protection of their interests vis‐à‐vis theemployer

o Another reason for enforcing the closed‐shop agreement isthe principle of sanctity or inviolability of contractsguaranteed by the Constitution. Freedom of employees toorganize themselves and select their representative forentering into bargaining agreements, should besubordinated to the constitutional provision protecting thesanctity of contracts. SC said that it cannot conceive howfreedom to contract, which should be allowed to beexercised without limitation, may be subordinated to thefreedomof laborers to choose the organization they desiretorepresentthem

• Advantagesanddisadvantagesofclosedshopagreemento Advantages–

Increases the strength and bargaining power oflabororganizations

Prevents non‐union workers from sharing in thebenefits of the union’s activities without alsosharingitsobligations

Prevents theweakening of labor organizations bydiscriminationagainstunionmembers

Eliminates the lowering of standards caused bycompetitionwithnonunionworkers

Enables labor organizations effectively to enforcecollectiveagreements

Facilitates the collection of dues and theenforcementofunionrules

o Disadvantages– Resultsinmonopolisticdominationofemployment

bylabororganizations Interferes with the freedom of contract and

personallibertyoftheindividualworker Compels employers to discharge all nonunion

workers regardless of efficiency, length of service,etc.

Facilitates the use of labor organizations byunscrupulous union leaders for the purpose ofextortion,restraintoftrade,etc.

Deniestononunionworkersequalopportunityforemployment

Enables union to charge exorbitant dues andinitiationfees

• Validdismissalbecauseofapplicationofunionsecurityclauseo Union security clauses in CBA, if freely and voluntarily

enteredinto,arevalidandbinding.Thus,thedismissalofanemployee by the company pursuant to a labor union’sdemandinaccordancewithaunionsecurityagreementdoesnotconstituteULP

o Eveniftheunionmemberswereunawareoftheclosed‐shopstipulationintheCBA,theyareboundbyit

o Unionmembers, although entitled to disaffiliate from theirunion and to form a new organization of their own, mustsuffer the consequences of their separation from the unionunderthesecurityclauseofaCBA

o TanduayDistilleryLaborUnionv.NLRC Tanduay Distillery Inc and Tanduay Distillery

Labor Union (TDLU) entered into a CBA whichcontained a union security clause. Thereafter, anumber of TDLU members joined another union,KAMPIL.TDLUexpelledthedisaffiliatingmembersfromTDLUanddemandedthatTanduayterminatetheir employment since they had lost theirmembership with TDLU. Employer terminatedemployees.

Employer did nothing but to put in force theiragreement. Such a stipulation is not only necessarytomaintainloyaltyandpreservetheintegrityoftheunion but is allowed by the Magna Carta of Laborwhen itprovidedthatwhile it isrecognizedthatanemployeeshallhavetherighttoselforganization,itisatthesametimepostulatedthatsuchrightsshallnot injure the right of the labor organization toprescribe its own rules with respect to theacquisitionorretentionofmembershiptherein. It isa solemn pronouncement of a policy that while anemployee is given the right to join a labororganization,suchrightshouldonlybeassertedinamanner that will not spell the destruction of thesameorganization.

• Dismissalpursuant to closedshopcausemust clearlyappear incontract

o Inordertovalidlydismissanemployeebyforceoftheunionsecurity clause, there should be a CLEAR ANDUNEQUIVOCAL statement that the loss of the status of amember of good standing in the union shall be a cause fordismissal

o Union shop, as with closed‐shop provisions, should bestrictlyconstruedagainsttheexistenceofunionshop

• Due process required in enforcing union security clause; intraunionmatterbecomesterminationdisputewithemployer


o Although a union security clause in a CBA may be validlyenforced and dismissal pursuant thereto may likewise bevalid, this does not erode the fundamental requirement ofdueprocess.

o Enforcementofunionsecurityclauseswhich is thesanctityand inviolabilityof contracts cannotoverrideone’s right todueprocess

o Whileitistruethattheissueofexpulsionofthelocalunionofficers is originally between the local union and thefederation, hence intra‐union in character, the issue waslater on converted into a termination dispute when thecompany dismissed the petitioners fromwork without thebenefitofaseparatenoticeandhearing

• Liability of union to pay wages and fringe benefits of illegallydismissedemployee

o Wheretheemployercompelledtheemployeetogoonforcedleave upon recommendation of the union for allegedviolation by the employee of the closed‐shop agreement,NLRC correctly ordered the reinstatement of the employeeanddirectedtheuniontopaythewagesandfringebenefitswhichtheemployeefailedtoreceiveasaresultofherforcedleave. Moreover, under the CBA between the union andemployer, theunionholds the company free andblamelessfrom any liabilities that may arise should the employeequestionthedismissal

• Employeringoodfaithnotliableo Wheretheemployerdismissedhisemployeesinthebeliefin

good faith that such dismissalwas required by the closed‐shop provisions of the CBAwith the union, hemay not beordered to pay back compensations to such employeesalthoughtheirdismissalisfoundtobeillegal

• Closedshop,towhomnotapplicableo Employeewhoatthetimetheclosedshopagreementtakes

effectisabonafidememberofreligiousorganizationwhichprohibitsitsmembersfromjoininglaborunionsonreligiousgrounds

o Employeesalreadyintheserviceandalreadymembersofalaborunionor unions other than themajority union at thetimetheclosed‐shopagreementtookeffect

o Confidential employees who are excluded from the rank‐and‐filebargainingunit

o Employees excluded from the closed shop by expressagreement

• Agencyfeeinsteadofunionmembershipo EmployeeswhoarebenefittingfromtheCBA,withoutbeing

membersofthebargainingunionmayberequiredtopayanagencyfee

o Written authorization from non‐union employee is notrequired. Employee’s acceptance of benefits from a CBAjustifiedthedeductionofagencyfeesfromhispay

o Non‐unionemployeesmaynotunjustlyenrichthemselvesbybenefiting from employment conditions negotiated by thebargainingunion

o Under theagency‐shopclauseofaCBA,anemployee isnotrequired to join the union as a condition of continuedemployment,butmustpaytheunionaservicefee

10. SixthULP:discriminationbecauseoftestimony(Article248[f])• By protecting the employee’s right to testify, the law shields the

workers’ right to self‐organization from indirect assault by theemployer

• Employer’s reprisal against a testifying employee is ULP because itviolates the right to engage in concerted activity, a right included intherighttoself‐organize

• Refusaltotestifyo Mabezav.NLRC

Employermadeemployeesignastatementthatsheandtheotheremployeeswerereceivingminimumwage and other labor standards. Employee signedbutrefusedtosweartothetruthofherstatement.Employer thenwasordered to turnoverherkeysto her living quarters, chargedwith abandonmentofjob,eventuallydismissed.Itdoesnotappearthatshewasorganizingaunionatthetimeofdismissal

Without doubt, the act of compelling employees tosign an instrument indicating that the employerobserved labor standardsprovisionswhenhemighthave not, together with the act of terminating orcoercing those who refuse to cooperate with theemployer’sscheme,constitutesULP.Thisactuationisanalogous to the situation where employerdismisses/discriminates against an employee forhavinggivenorbeingabouttogivetestimony.

• Laborstandardsviolationsmayleadtoastrikeo Article 118 – unlawful for employer to refuse to pay or

reduce wages and benefits, discharge or in any mannerdiscriminate against any employee who has filed anycomplaintorinstitutedanyproceedingsorhastestifiedorisabouttotestifyinsuchproceedings

o Article118islimitedtomattersaboutwageso Article 248, the subject testified to is any issue covered by

theCodeo If labor standards are violated and the employer does not

retaliateagainsttheemployeeswhoreportedtheviolations,there are no ULP and no strikeable situation. In that case,enforcement‐visitorial function of DOLE Regional Office oradjudicatorypowerofthatofforoftheNLRCwilloperate

o BUT if employer retaliates, there is ULP, which creates astrikeablesituation

11. SeventhULP:Violationofthedutytobargain(Article248[g])12. EightULP:paidnegotiation(Article248[h])


• ULPfortheemployertopaytheunionoranyofitsofficersoragentsanynegotiationfeeorattorney’sfeeaspartofsettlementincollectivebargainingoranylabordispute

13. NinthULP:violationoftheCBA(Article248[i])• Implementationisstillpartofthebargainingprocess.• Dutytobargainrequiresgoodfaith• Noncompliancewiththeagreementisnon‐observanceofgoodfaithin

bargaining=ULP• But such violation, to constitute ULP, must be gross according to

Article26114. ReliefinULPcases

• Ceaseanddesistordero Tosupportaceaseanddesistorder,therecordmustshow–

Restrainedmisconductwasanissueinthecase Findingoffactofsaidmisconduct Suchfindingoffactwassupportedbyevidence

o Court is not authorized to issue blank cease and desistorders,butmustconfineitsinjunctiontospecificactswhicharerelatedtopastmisconduct

o Suchorderisnotinvalidatedbecauseactcomplainedofwasvoluntarilydiscontinuedpriortoorduringthecourseoftheproceedings

o Butifactcomplainedofhappenedsolongatimethatthereisnolongeranythreatorprobabilityofrecurrence,ceaseanddesistorderwillnotbejustified

• Affirmativeordero Order may usually direct the full reinstatement of the

discharged employees to their substantially equivalentposition

o Ifotherlaborershavebeenhired,theaffirmativeordershalldirect the respondent to dismiss these hired laborers tomakeroomforthereturningemployee

• Ordertobargain;mandatedCBAo Courtmay issue an affirmative order to compel to bargain

withthebargainingagent• Disestablishment

o Where employer had initiated or interfered with theformation or establishment of any labor organization orcontributed to it, Courtmay issue, in addition to cease anddesistorder,anorderdirectingtheemployertowithdrawallrecognition from the dominated labor union and todisestablishthesame

o Order for disestablishment comprehends and ordains thewithdrawalof recognitionofsuch labororganizationas theemployees’ bargaining agent and a bona fide and sufficientcommunication to the employees of such withdrawal ofrecognitionofsuchorganizationbytheemployer

o Technicalformofdisestablishmentisnotimportant.Rather,that employees are publicly assured by the employer ingivinggoodfaithorhisneutralityandimpartiality

15. ULPnotsubjecttocompromise• Butina1997case,SCallowedcompromisesettlingaULP‐basedstrike

o Whilewedonot abandon the rule thatULPacts are beyondand outside sphere of compromises; the agreement wasvoluntarily entered into and represents a reasonablesettlement;this,itbindstheparties.

16. ULPinagivenperiodshouldbeincludedinsinglecharge• Unionshouldnotbeallowedtosplitthecauseofactionandharassthe

employer17. Employer’sresponsibilityforULPactsbysubordinateofficials

• If violations were traceable back to the employer, either by way ofauthorizationorratification,employer,despitethefactthathehimselfwasnottheactualactor,washeldtoberesponsibleforsuchviolations

• But there is difficulty in cases where it is impossible to proveauthorization/participationoftheemployer

o Circumstancesofeachcasewereconsideredascontrollingo Where the facts in thecasemadedoubtful theproprietyor

equityofimputingtotheemployerresponsibilityfortheactsofaparticularemployee,thefollowingwereoftenemployedindecidingtheissue–

Knowledge by the employer of the employee’simproperacts

a. Employer’s failure to prevent the act ofthe employee invited the imputation offaultandresponsibilityoftheemployer

Continuityofimproperconductbyemployee Employer’spastpolicyandattitude

a. Similarity between attitude or policy ofthe employer and that of offendingsupervisoryemployeemightbeindicativeofaconcertofeffortbetweenthetwo

ChapterIII:ULPoflabororganizations

Article249.ULPoflabororganizations.

1. Restraintorcoercionbylabororganization; interferencebyunionisnotULP

• InterferencebyalabororganizationisnotULP• A labor organization may interfere in the employees’ right to self‐

organizationaslongastheinterferencedoesnotamounttorestraintorcoercion

• Interferencebya labororganizationisnotaULPbecause interferingin the exercise of the right to organize is itself a function of self‐organizing

• Example:persuadesnon‐strikingemployeestojoinastrike• Coercingparticipationinstrike


o Union violates the law when, to restrain or coercenonstrikers from working during a strike, it assaults orthreatenstoassault them, threatensthemwith lossof theirjobs,etc

2. Unioninduceddiscrimination• ULP=union attempts to cause an employer to grant advantages for

union members over nonmembers, for union members in goodstanding over suspended or expelled members, for union membersoverpermitholders, formembersof theunionexecutiveboardovermoresenioremployees, formembersofoneunionovermembersofanother,orofmembersofone localunionovermembersofanotherlocal

• Arbitraryuseofunionsecurityclauseo Union has right to determine its membership and to

prescribe the conditions for the acquisition and retentionthereof.Consequently,admissiontomembershipmaynotbecompelled

o Such rule is qualified in the case of labor unions holding amonopoly in the supply of labor. In such case, qualifiedapplicantsmaynotbearbitrarilyexcludedfrommembershipand their admission may not be barred by unreasonablerules

• Salungav.CIRo Salungaresignedfromtheunionoutofdisappointmentover

the inaction of union officials on his grievances. Unionrequested the company to dismiss Salunga pursuant toclosed‐shopprovision in theCBA.Salungawas informedbythe company of his possible dismissal. He then tried torevoke or withdraw his resignation. Union denied thewithdrawal.Salungawasdismissed.

o Laborunions are not entitled to arbitrarily exclude qualifiedapplicantsformembership,andaclosedshopprovisionwouldnotjustifytheemployerindischarging,oraunionininsistingupon the discharge of, an employee whom the union thusrefuses to admit to membership, without any reasonablegroundtherefore.

o Thecompanywasreluctant,ifnot,unwilling,todischargethepetitioner.CompanywasnotguiltyofULP

o RightofemployeedismissedfromserviceduetoULPofunionwho is at fault, it is the union who should shoulder thebackwages

• ManilamandarinEmployeesUnionv.NLRCo Beloncio, assistant head waitress, was expelled from the

Manila Mandarin Employees Union for acts allegedlyinimical to the interests of the union. Apparently, she said“walaakongtiwalasaunionniyo”whensheurgedawaiterto adopt a better attitude toward hiswork. Eventually, shewasputonforcedleave.Unionaskedforherdismissal.

o A union member may not be expelled from her union, andconsequentlyfromherjob, forpersonalorimpetuousreasons

or for causes foreign to the closedshop agreement and in amannercharacterizedbyarbitrarinessandwhimsicality

• Notdisloyaltytoaskhelpfromanotheruniono Rance,etal.v.NLRC

PetitionersweremembersofthePolybagWorker’sUnion who were expelled by the latter fordisloyaltybecausetheyallegedlyjoinedtheNAFLU,another federation. Employees dismissed.EmployeesclaimthattheyneveraffiliatedwiththeNAFLU

Mere act of seeking help from NAFLU can’tconstitute disloyalty as contemplated in the CBA. ItwasanactofselfpreservationofworkerswhofoundshelterintheNAFLUwhotookthecudgelsforthem.Petitionersweredenieddueprocessaswell

3. Refusaltobargain• ULPunderArticle249(c) is intended to insure thatunionsapproach

thebargainingtablewiththesameattitudeofwillingnesstoagreeastheActrequiresofmanagement

• Union violates duty to bargain collectively by entering negotiationswith a fixed purpose of not reaching an agreement or signing acontract

4. Featherbeddingandmakeworkarrangements• Featherbeddingisatermgiventoemployeepracticeswhichcreateor

spreademploymentby“unnecessarily”maintainingorincreasingthenumberofemployeesused,ortheamountoftimeconsumed,toworkonaparticularjob

• Mostofthesepracticesstemfromadesireonthepartofemployeesofjob security in the face of technological improvements orsubcontracting

• Thesepracticesareeconomicallywastefulandwithoutanylegitimateemployeejustification

5. CBAdealwithemployer• AskingfororacceptingsomefeefromtheemployeraspartofCBAor

disputesettlement=ULP

TitleVII:Collectivebargainingandadministrationofagreement[Part1.Collectivebargainingconceptandprocedure]

Article250.Procedureincollectivebargaining.

Article251.Dutytobargaincollectivelyintheabsenceofcollectivebargainingagreements.

1. Natureofcollectivebargaining• Collectivebargainingornegotiationstowardscollectiveagreementis

a democratic framework to stabilize the relation between labor andmanagementtocreateaclimateofsoundandstableindustrialpeace

• Fourrelatedbutdistinguishableprocesses


o Negotiation between representatives of the managementand the union over wages, hours, and other terms ofemployment

o Executionofawrittencontractembodyingthetermsagreedupon

o Negotiationof anyquestion arising as to the interpretationorapplicationofthecontract

o Negotiation over the terms of a new contract or proposedmodifications,whenanexistingagreementisvalidlyopenedfornegotiations

• Continuous processes; does not end with the execution of anagreement–

o Negotiationofcontracts–thelegislativephaseoftheunion‐employerrelationship

o Administrationofcontracts–executivephaseo Interpretationorapplicationofcontracts–judicialphase

• CBAdefinedo Itisacontractexecuteduponrequestofeithertheemployer

ortheexclusivebargainingrepresentativeoftheemployeesincorporatingtheagreementreachedafternegotiationswithrespect to wages, hours of work and all other terms andconditionsofemployment,includingproposalsforadjustinganygrievancesorquestionsundersuchagreement

o Itismorethanacontract;itisageneralizedcodetogovernamyriadofcaseswhichthedraftsmencan’twhollyanticipate

o Covers whole employment relationship and prescribes therightsanddutiesoftheparties

o A system of industrial self‐government with the grievancemachineryattheheartofthesystem

• Rationaleo The rules which most vitally affect workers in their daily

lives remain to be made for each industrial establishmenteither by the employer’s fiat or by collective agreementsnegotiatedandadministeredjointlybytheemployeranditsemployeesasagroup

o With labor unions, workers have secured a more effectivevoice in arranging the terms and conditions of theiremployment and have been enabled to participateincreasinglyinthegovernmentoftheirindustrialwork

• Strengthofthecollectivebargainingmethodo Collective bargaining represents a diminution of absolute

management power in fields which employers in the pastconsideredtobeexclusivelywithintheirowndomain

o Collective bargaining introduces democratic practices intopaid employment, virtually all forms of which used to beorganizedalongauthoritarianlines

o Provides an opportunity for the exchange of informationtendingtoenhancetheunderstandingofthepartiesforeachother problems and objectives, bothwhere they differ andwheretheyareidentical

o Providesanorderlyprocedurebywhicheachsidecanseekto present to the other the best possible case for thesatisfaction of its particular demands process ofnegotiationthatcreatesatleastthepossibilitythateachsidemay move closer to the attainment of its own separateobjectiveswhilecontributingtotheattainmentofthosethataresharedwiththeotherside

o Elicits the consentof thosewhowillhave to liveunder theterms of element in employment, and consent assuresstability because parties who have accepted an agreementwilllivebyitsterms

o Potential usefulness for solving problems integrative orcreativeprocessfromwhichbothpartiescanderivebenefit

2. Emergenceofcollectivebargaining• Originator

o Coining the term collective bargaining Beatrice Webb,“TheCooperativeMovementinGreatBritain”

• AdoptioninthePhilippineso CA 213 – An Act to Define and Regulate Legitimate Labor

Organizationo But it is the Industrial Peace Act that defined collective

bargainingandoutlineditsprocedure Modeled after the Taft‐Hartley Act or the Labor‐

ManagementRelationsActof1947oftheUS Popularlycalledthemagnacartaoflabor

o AdministrativeCodeof1987mandates theDOLEtoupholdthe right of workers and employers to organize and topromote free collective bargaining as the foundation fo thelaborrelationssystem

3. Partiestocollectivebargaining• DutytobargaincollectivelyarisesONLYbetweentheemployerandits

employees.Where neither party is an employer nor an employee oftheother,nosuchdutywouldexist

• Bothpartiesnegotiatethroughtheirrepresentatives• Theemployees’bargainingrepresentativereferstoalegitimatelabor

organizationoranyofficeroragentofsuchorganization,whetherornotemployedbytheemployer(Article212[j])

o Underthisdefinition,officeroragentmaybeatotalstrangertotheemployer,maybeacounselorpresidentofamotherunion

• BUTundertheimplementingrules,asamended,exclusivebargainingrepresentativeisanylegitimatelabororganizationdulyrecognizedorcertified as the sole and exclusive bargaining agent of all theemployeesinabargainingunit

o Bargainingrepresentativeoftheemployeesisanentity–theunion–nottheofficersoftheunion

4. Jurisdictionalpreconditionsofcollectivebargaining• The employer is not under any legal duty to initiate contract

negotiation


• Mechanics of collective bargaining are set in motion only when thefollowingjurisdictionalpreconditionsarepresent–

o Possession of the status of majority representation of theemployees’ representative in accordance with any of themeansofselectionordesignatedprovided forby theLaborCode

o Proofofmajorityrepresentationo AdemandtobargainunderArticle250(a)

• Employer’sdutytorecognizeandbargaincollectivelywithaunionasthe collective bargaining representative of his employees does notariseuntilaftertheunionrequeststheemployertobargain

• Employer has the right to demand of the asserted bargaining agentproof of its representation of its employees. Having the right todemonstrationofthisfact,itisnotanULPforanemployertorefusetonegotiate until the asserted bargaining agent has presentedreasonableproofofmajorityrepresentation

• Bargainingwithminorityunion,ULPo Where amajority representative has been designated, it is

anULPfortheemployerasarefusalofcollectivebargaining,todealandnegotiatewiththeminorityrepresentativetotheexclusion of the majority representative; even though nomajorityrepresentativehasbeendesignated

o LakasngManggagawangMakabayanv.MarceloEnterprises On theunion side,where there exists a legitimate

issueastowhichofseveralunionsisthelegitimaterepresentativeofemployees,itisULPforoneoftheunions to stage a strike and demand that theemployersitdownwithitforcollectivebargaining

5. Whenbargainingshouldbegin• If the 3 jurisdictional preconditions are present, the collective

bargaining should begin within the 12 months following thedeterminationandcertificationoftheemployees’exclusivebargainingrepresentativecertificationyear

• Absent unusual circumstances, an employer commits an ULP byrefusingtobargainwiththeunionduringitscertificationyear

o Rule is the same whether the union lost its majority as aresult of the employer’s ULP or through no fault of theemployer

• Following the expiration of the year period, there continues to be apresumption in favorofaunionmajority, thoughthepresumption isrebuttable

6. Singleenterprisebargainingprocedurebroadlydescribed• Lawgivesprimacytofreecollectivebargainingandallowstheparties

todevisetheirbargainingruleso This iswhythebargainingprocedureisgovernedprimarily

byagreementoftheparties• PartiesmeettosetthegroundrulesbeforetacklingCBAproposals• In the presence of validly agreed procedure, the Labor Code

procedureappliessuppletorilyonly7. Multiemployerbargaining

• Collective bargaining may take place at the national, industry orenterpriselevel

• PHLenterprise‐levelordecentralizedbargaining• Rationaleofmultiemployerbargaining

o When a number of employer join forces for purposes ofcollective bargaining, the unit structure is described as amulti‐employerbargainingunit

o Structure may consist of an association representingemployers,orevenawholeindustry,oritmaybecomposedofonlyafewemployerswhobargainasagroup,orthroughanassociation

o Some of these arrangements may embrace the wholeindustry within a particular geographical area, others maycoveronlyaportionofsuchanindustry

o Competitive pressures are the dominant forces thatencourage both unions and employers to enter into multi‐employerorindustry‐widebargainingrelationships

o Multi‐employer unit is particularly advantageous to bothsidesinindustriescomposedofmanysmall,financiallyweakemployers

o Multi‐employer bargaining provides bothmanagement andunionswith significant cost savings in negotiation of laboragreements. It is cheaper to negotiate one master multi‐employer agreement than a number of single‐employeragreements

o However,multi‐employerbargainingmaynotonlyoverlookthe needs of various employee groups, but also ignoreparticularrequirementsofindividualemployers

o To arrive at multi‐employer agreements is much moredifficult than to arrive at single‐employer contracts. Theexpandedsizeoftheunitcomposedofmanyheterogeneousgroups leads to intensive intraorganizational bargainingbothontheunion’sandontheemployer’sside

• Multiemployerbargainingprocedureo A legitimate labor union(s) and employers may agree in

writing to come together for the purpose of collectivebargaining,provided

Only legitimate labor unions who are incumbentexclusive bargaining agents may participate andnegotiateinmulti‐employerbargaining;

Only employers with counterpart legitimate laborunionswhoare incumbentbargaining agentsmayparticipate and negotiate in multi‐employerbargaining;and

Only those legitimate laborunionswhopertain toemployer units who consent to multi‐employerbargaining may participate in multi‐employerbargaining

o Multi‐employer bargaining may be initiated by the laborunionsorbytheemployers.


Legitimate labor unions who desire to negotiatewith their employers collectively shall execute awritten agreement among themselves,which shallcontainthefollowing:

Thenamesofthelaborunionswhodesiretoavailofmulti‐employerbargaining;

Eachlaborunionintheemployerunit; Thefactthateachofthelaborunionsare

the incumbent exclusive bargainingagents for their respective employerunits;

The duration of the collective bargainingagreements, if any, entered into by eachlabor union with their respectiveemployers. [Legitimate laborunionswhoare members of the same registeredfederation,national,orindustryunionareexempt from execution of this writtenagreement.]

The legitimate laborunionswhodesire tobargainwithmulti‐employersshallsendawrittennoticetothiseffecttoeachemployerconcerned.Thewrittenagreement stated in the preceding paragraph, orthe certificates of registration of the federation,national, or industry union, shall accompany saidnotice. Employerswho agree to group themselvesor use their existing associations to engage inmultiemployer bargaining shall send a writtennoticetoeachoftheircounterpartlegitimatelaborunions indicating their desire to engage in multi‐employerbargaining.Saidnoticeshall indicatethefollowing:

The names of the employers who desiretoavailofmulti‐employerbargaining;

Their corresponding legitimate labororganizations;

The fact that each correspondinglegitimate union is any incumbentexclusivebargainingagent;

The duration of the current collectivebargainingagreement,ifany,enteredintoby each employer with the counterpartlegitimatelaborunion.

Each employer or concerned labor union shallexpress itswillingness or refusal to participate inmulti‐employerbargaininginwriting,addressedtoits corresponding exclusive bargaining agent oremployer. Negotiations may commence only withregard to respective employers and labor unions

who consent to participate in multi‐employerbargaining

During the course of negotiations, consentingemployers and the corresponding legitimate laborunionsshalldiscussandagreeonthefollowing:

The manner by which negotiations shallproceed;

The scope and coverage of thenegotiationsandtheagreement;and

Where appropriate, the effect of thenegotiations on current agreements orconditions of employment among theparties.

o Two (2) signed copies of collective bargaining agreementreached throughmulti‐employerbargainingshallbepostedfor at least five ( 5) days in two conspicuous areas in eachworkplace of the employer units concerned. Said collectivebargaining agreement shall affect only those employees inthebargainingunitswhohaveratifiedit.Thesamecollectivebargaining agreement shall be registered with theDepartmentinaccordancewiththefollowingRule.

• Unfavorabletoconsumers?o Oneoftheconsequencesofmulti‐employerbargainingisthe

uniformity of contract terms that accompany suchframeworks.

o There is opposition to such structures on the grounds thatsuchstandardizationmaybedetrimentaltopublicinterest

o Some claim that it could strengthenmonopolistic forces inthe economy and lessen competition lower levels ofoutputandhigherprices,easiertopassontotheconsumer

• Optionalo Multi‐employerbargaining ispurelyoptional foremployers

andunions

Article252.Meaningofdutytobargaincollectively.

Article253.DutytobargaincollectivelywhenthereexistsaCBA.

1. Dutytobargaindefined• Twosituationswhenthedutytobargainexists–

o WherethereisyetnoCBA Mutual obligation of the employer and the

employees’majorityuniontomeetandconvene Purposesofthemeetingandconveningare–

Tonegotiateanagreementonthesubjectof(a)wages,(b)hoursofwork,(c)othertermsandconditionsofemployment

To execute a contract incorporating suchagreementifrequestedbyeitherparty


Kindofcompliancerequiredisprompt,expeditiousandingoodfaith

Limitations or reservations of the duty are that itdoesnotcompelanypartytoagreetoaproposalortomakeaconcession

o WhereaCBAexists Thedutytobargainmeansalloftheabove,andthe

obligation not to terminate or modify the CBAduringitslifetime

But 60 days before the CBA expires, either partymay notify the other in writing that it desires toterminateormodifytheagreement.

During the 60 day period and until a newagreementisreached,theCBAremainsinfullforceandeffect; theparties areduty‐bound tokeep thestatus quo. The law therefore provides forautomaticrenewalorextensionoftheCBA

The 60 day period does not always coincidewiththe freedom period. 60 day period refers tosubmission of proposal to renegotiate thenonrepresentationalprovisionsoftheCBA

• FourformsofULPinbargainingo Failureorrefusaltomeetandconveneo Evadingthemandatorysubjectsofbargainingo Bad faith in bargaining, including failure or refusal to

executethecollectiveagreement,ifrequestedo GrossviolationoftheCBA

2. FirstULPinbargaining:failureorrefusaltomeetandconvene• Tobargainingoodfaith,anemployermustnotonlymeetandconfer

with the union which represents his employees, but also mustrecognizetheunionforthepurposeofcollectivebargaining

• Employermustrecognize theunionas thebargainingrepresentativeof all the employees in the appropriate bargainingunit, even if theyarenotallmembersoftheunion

• Duty to bargain extends beyond the period of contract negotiations,and applies to labor‐management relations during the term of theagreement

• Unresolvedpetitionforunioncancellationo CapitolMedicalCenterv.Trajano

Employer maintains that its petition forcancellationoftheregistrationofrespondentunionwhich has been certified as the bargainingrepresentative of the employees, involves aprejudicial question that should first be settledbeforepartiescouldbargain

Petition for cancellation of union registration doesnotprecludecollectivebargaining.

• Sellingthecompanyo IfanemployeeisguiltyofULPwhenhedirectlydischarged

his employees to forestall a demand for collective

bargaining, he certainly should not be allowed to evaderesponsibilityifheindirectlycausesthatdischargebysellingto a company that he knows is unwilling to accept hisemployees

o Basicruleisthatifthetransferofassetsandemployeesfromone employer to another leaves intact the identity of theemployingenterprise,thetransferor’sdutytorecognizeandbargain with an incumbent union devolves upon thetransfereeas“successoremployer”

o Amerechange inownershipof abusiness is insufficient toalteraunion’sstatusasbargainingrepresentative

• Successoremployer:continuityandidentityo Inmaking the determination as towhether an employer is

successor,theNLRBlookstothetotalityofcircumstancestodetermine whether there has been a substantial andmaterialalterationintheemployingenterprise

NLRB will consider whether there has been asubstantial continuity of the same operations; thenew employer uses the same plant; sameworkforce; same job exists under same workingconditions

o If there is a substantial and material alteration in theemploying enterprise, the new employer need not bargainwiththeincumbentunion

o The rule is different where the buyer makes substantialnondiscriminatory personnel changes and changes in theoperationstructureofthebusiness.Insuchacase,heisnotasuccessoremployerandneednotrecognizeorbargainwiththeincumbentunion

• Conversiontoindependentfranchiseoroperationo A decision to withdraw capital from a company‐operated

facility and relinquish the operating control to anindependent dealership lies very much at the core ofentrepreneurial control, and hence is not a mandatorysubjectofbargaining

• Doeconomicexigenciesjustifyrefusaltobargain?o Anemployerhasbeenheldnotguiltyofarefusaltobargain

by adamantly rejecting the union’s economic demandswhereheisoperatingataloss,onalowprofitmargin,orinadepressed industry, AS LONG AS HE CONTINUES TONEGOTIATE

o Financial hardship constitutes no excuse for refusing tobargaincollectively

• Actsnotdeemedrefusaltobargaino Adoption of an adamant bargaining position in good faith,

particularlywherethecompanyisoperatingatalosso RefusaltobargainoverdemandsforcommissionofULPo Refusaltobargainduringperiodofillegalstrike


If union engages in illegal strike, employerhasnoobligation to bargain until he is notified that theillegalstrikehasbeenterminated

o Thereisnorequestforbargainingo Theunionseeksrecognitionforaninappropriatelylargeunito The union seeks to represent some persons who are

excludedo Therank‐and‐fileunitincludessupervisorsorinappropriate

otherwiseo Demandforrecognitionandbargainingismadewithinthey

ear following a certification election in which the clearchoice was no union and no ad interim significant changehastakenplaceintheunit

o Theunionmakesunlawfulbargainingdemands• Alleged interference in the selection of the union’s negotiating

panelo Standard Chartered Bank Employees Union v. Hon Nieves

Confesor UnionclaimsthatemployercommittedULPwhenit

suggested that the president of the federation beexcludedfromtheunion’snegotiatingpanel

SC disagrees. If an employer interferes in theselection of union negotiators or coerces the Unionto exclude from its panel of negotiators arepresentative, and if it can be inferred that theemployer adopted the said act to yield adverseeffects on the free exercise of the right to selforganizationorontherighttocollectivebargainingoftheemployees,ULPiscommitted.Inordertoshowthat the employer committed ULP under the LaborCode,substantialevidenceisrequiredtosupporttheclaim.

Here, the circumstances that occurred during thenegotiatingdonotshowthatthesuggestionmadeisan antiunion conduct on the part of the employer.The suggestion was made previous to thecommencement of the negotiation andsimultaneouslywiththeunionpresident’ssuggestionthat the bank lawyers be excluded. If at all, thesuggestionshouldbeconstruedaspartofthenormalrelationsandinnocentcommunication

• Nonreplytoproposal;CBAimposedonemployero KiokLoyv.NLRCandKilusan

The union was certified as sole and exclusivebargaining agent of employees of Sweden IceCream (Kiok Loy). Union furnished companywithcopies of its proposed CBA and requested thecompany for its counterproposals. Company didnotreply.Unionfilednoticeofstrikeonthegroundof unresolved economic issues in collective

bargaining. NLRC held company guilty ofunjustifiedrefusaltobargain

The union complied with the jurisdictionalpreconditions of collective bargaining. From theoverall conduct of the company, it is indubitablyshown that it disregarded its obligation to bargainingoodfait.Itisnotobligatoryuponeithersideofalaborcontroversytoprecipitatelyacceptoragreetothe proposals of the other. But an erring partyshould not be tolerated and allowedwith impunityto resort to schemes feigningnegotiations by goingthroughemptygestures

• RepetitioninDivineWordUniversityo TheSCoverruledtheUniversity’scontentionthattheunion’s

proposals may not be unilaterally imposed on it on thegroundthataCBAisacontractwhereintheconsentofbothpartiesisindispensable

3. SecondULPinbargaining:evadingthemandatorysubjects• Itistheobligationoftheemployerandtheemployees’representative

to bargain with each other with respect to wages, hours, and otherterms.Theyarestatutoryormandatoryproposals

• Anemployer’srefusaltonegotiateamandatorysubjectofbargainingisanULPalthoughtheemployerhaseverydesiretoreachagreementandearnestlyandinallgoodfaithbargainstothatend

• Anemployer’sdutytobargainislimitedtothemandatorybargainingsubjects;astoothermatters,heisfreetobargainornottobargain

• Amereremote,director incidental impact is insufficient torenderasubjectamandatorysubjectofbargaining;inorderforamattertobesubject to mandatory collective bargaining, it must materially orsignificantlyaffectthetermsorconditionsofemployment

• Conditions of employment include not only what an employer hasalreadygranted,butalsowhatithasannounceditintendstogrant

• Whether the agreement concerns amandatory subject of bargainingdependsnotonitsform,butonitspracticaleffect

• Wagesandemploymentconditionso Wages under 29 USCS Sec. 158(d) includes not only

compensationbutalsootheremolumentsofvaluefurnishedbytheemployertohisemployees

o Wages under our Labor Code refers to remuneration orearnings,howeverdesignated,capableofbeingexpressedintermsofmoney,etc.

o Mandatorysubjectsofbargainingare– Effectofautomationonabargainingunit Pension and insurance benefits for active

employees(butNOTbenefitsaccordedretirees) Wagesandother typesofcompensation, including

meritincreases Working hours andworking days, includingwork

shifts Vacationsandholidays


Bonuses Seniority Transfer Lay‐offs Employeeworkloads Workrulesandregulations Rentofcompanyhouses Unionsecurityarrangements

o Note that the law specifies “terms and conditions ofemployment” not “working conditions” since “terms andconditions”isclearlymuchmoreinclusive

• WageFactors;“Solomonic”Approacho Courtnotesthe“middleground”approachemployedbythe

Secretary in this casewhich theCourtdoesnotnecessarilyfind to be the best method of resolving a wage dispute.Merely finding the midway point between the demands ofthecompanyandtheunion,and“splittingthedifference”isasimplistic solution that fails to recognize that parties mayalreadybeatthelimitsofthewagelevelstheycanafford.Itmay lead to the danger too that neither of the partieswillengage inprincipledbargaining; the companymaykeep itsposition artificially low while the union presents anartificially high position, on the fear that a “Solomonic”solution cannot be avoided. Thus, rather than encourageagreement,a“middlegroundapproach”insteadpromotesa“play safe” attitude that leads to more deadlocks than tosuccessfullynegotiatedCBAs

• Workloadsandworkruleso Employeeworkloadsareamandatorysubjectofbargainingo Employer rules concerning coffee breaks, lunch periods,

smoking,employeediscipline,anddressarealsomandatorysubjectsofbargaining,asareplantsafetyrulesandgeneralregulations

o Company rules relating to safety andwork practices comewithin the meaning of the phrase “other terms andconditions of employment” and, therefore, constitute amandatorysubjectofcollectivebargaining

• Codeofconducto Formpartof termsandconditionsofemployment, thatare

propersubjectsofcollectivebargaining• Managementprerogativesclause

o An employer does not commit an ULP by insisting, to thepoint of a bargaining impasse, on the inclusion in thecontractofamanagementprerogativesclause,eventhoughsomeofthematterscoveredbytheclauseare“conditionsofemployment”whicharemandatorysubjectsofbargaining

• Uniondisciplineclauseo Right not to withdraw fines is an internal union affair, a

matter involving relations between employees and theirunions,andthereforenotamandatorybargainingitem

• Arbitration,strikevoteornostrikeclauseso An employer may lawfully bargain to an impasse over his

proposalthatthecollectivebargainingagreementincludeanarbitration clause or a no‐strike clausewhichprohibits theemployeesfromstrikingduringthelifeoftheagreement

• Nolockoutclause;clausefixingcontractualtermo An employer’s statutory duty to bargain requires him to

negotiate over the union’s proposal that their agreementincludeaclausebindinghimnottolockouttheemployees

o An employer’s refusal to bargain over the duration of thecontracttobeenteredintoisalsoaULP

o But an employer’s obligation to enter into a CBA does notrequire that the employer enter into an unalterableobligationforanextendedperiodoftime

• Signingbonuso IsagrantmotivatedbythegoodwillcreatedwhenaCBAis

successfully negotiated and signed between the employerandtheunion

o Incontractualterms,asigningbonusisjustifiedbyandistheconsideration paid for the goodwill that existed in thenegotiationsthatculminatedinthesingingofaCBA.Withoutthe goodwill, the payment of a signing bonus can’t bejustified and any order for such payment constitutes graveabuseofdiscretion

o In short, if the reasonbehind a signingbonus is absent, nosigningbonusneedbegiven

o Besides, a signing bonus is not a benefit which may bedemanded under the law; it may not be demanded as amatterofright

• Voluntarybenefitso Voluntaryifgrantedbytheemployeralthoughnotrequired

bylaw Vacationleave Bonus 14thmonthpay

o InnegotiatingaCBA,maytheuniondemandthatanexistingvoluntarybenefitbediscussedandincludedintheCBA?

Notnecessarily.NotULPifemployerwantstokeepit under management’s exclusive control. But theCourtupheldtheinclusionofthevoluntarybenefitasapropersubjectofbargaining

• Nodutytoagreeevenonmandatorysubjectso Neither party is obligated to yield even on a mandatory

bargainingsubjecto Either party may bargain to an impasse as long as he

bargainsingoodfaith• Nonmandatorysubjects

o Anemployercan’tinsist,tothepointofcreatingabargainingimpasse,ontheinclusionofaprovisionoutsidethescopeof


the statutory bargaining subjects, even if he acts in goodfaith

o However,ithasbeenheldthatabargainingimpassemaybereachedover anon‐mandatorybargaining subject althoughthat subject is not the sole cause for the parties’ failure toagree.Whenasubjectunderdiscussionisnotmandatory,itmay be discussed if both parties agree, but a strike orlockoutmaynotbeusedtocompelnegotiationoragreement

• Bargainingtothepointofimpasse:notnecessarilybadfaitho Theadamantinsistenceonabargainingpositiontothepoint

wherethenegotiationsreachanimpassedoesnotestablishbadfaith.

o Neithercanbadfaithbeinferredfromaparty’sinsistenceonthe inclusion of a particular substantive provision unless itconcernstrivialmattersorisobviouslyintolerable

o Bargainingtothepointofdeadlockmayormaynotamountto bargaining in bad faith depending on whether theinsistencereferstoamandatoryoranon‐mandatorysubjectofbargaining

Mandatorymayinsistonbargaining,eventothepoint of deadlock, and his insistence will not beconstrued as bargaining in bad faith becausedutyto bargain requires meeting and convening ontermsandconditionsofemployment,butdoesnotrequireassenttotheotherparty’sproposals

Non‐mandatorymaynotinsistonbargainingtothe point of impasse, otherwisewill be construedas bargaining in bad faith; may be construed asevasionof theduty tobargainandsuchevasion isULP

Insistenceonnon‐mandatorysubjectasacondition to bargaining on mandatorysubject indicatesabsenceofgood faith inbargaining

• Whenistheredeadlockorimpasse?o Bargaining impasse over an issue exists where good faith

bargainingonthepartofthepartieshasfailedtoresolvetheissue and there are no definite plans for further efforts tobreakthedeadlock

o Impasse presupposes a reasonable effort at good‐faithbargaining which, despite noble intentions, does notconcludeinanagreementbetweentheparties

o IntheNLRB’sview,whetherabargainingimpasseexistsisamatterofjudgmentdependentonsuchfactors

Bargaininghistory Parties’goodfaithinnegotiations Lengthofnegotiations Importance of issues as to which there is a

disagreement

Contemporaneous understanding of the parties astothestateofnegotiations

o Whether the subject is mandatory or non‐mandatory thatcausedabargainingdeadlock,theunionmayfailanoticeofstrikeortheemployeranoticeoflockout

o Asubstantialchangeinthebargainingpositionofonepartyis necessary to break an existing impasse so as to renderunlawful the other party’s subsequent refusal to meet andbargain

o Novalidbargaining impasse canbe said tooccurwhen thebargaining deadlock is caused by the failure of one of thepartiestobargainingoodfaith

• Dutytobargainwhenthereisdeadlockorimpasseo Deadlock does not mean the end of bargaining; rather, it

signals the need to continue the bargaining with theassistance of a third party as a conciliator or arbitratorwhose firstaim is toget thepartiesback to thenegotiatingtableandhelpthemcraftawin‐winsolution

o Althoughnegotiationsreachadeadlock, theemployermustresumenegotiationswherechangedconditionsindicatethatanagreementmaybepossible

o Evenafterreachinggenuineimpasse,theemployercommitsan ULP by cancelling a scheduled bargaining meetingbecausetheunionfiledULPchargesagainsttheemployer

o BUT an employer can’t be held to have violated theobligation to bargain collectively where the negotiationsresulted in a deadlock, causing the employer to shut downthe plant, and the union made no request for furthernegotiations until after the plant had reopenedwith a newset of employees operating under an agreement withanotherlabororganization

• Strikeorlockoutincaseofdeadlocko The law (Article 263) recognizes bargaining deadlock as a

validreasontodeclareastrikeorlockouto At this point of the bargaining scenario, strike/lockout is

supposedtobeamethodofresolvinganimpasse,adevicetoconstrain theparties to endan impasseandgoback to thenegotiation table. While its meant to be a solution,strike/lockoutfrequentlybecomeaprobleminitself

o Well‐intentionedbargainingusuallyavoidsadeadlockandifit does occur, a third‐party intercession may becomenecessarytoavertastrikeorlockout

o ManilaCentralLineCorpv.ManilaCentralLineFreeWorkersUnionNFL

After the NCMB failed to resolve the bargainingdeadlockbetweentheparties,unionfiledapetitionfor compulsory arbitration in the ArbitrationBranchoftheNLRC.Employerjoinedthepetition

May a bargaining deadlock be resolved througharbitrationbyaLaborArbiter?


Hence, it ended up as a voluntary arbitration. Theessenceofvoluntaryarbitration,afterall,isthatitisby agreement of the parties that a matter issubmittedforarbitration.Itdoesnotmatterthatthepersonchoseasarbitrator isa laborarbiterwho ischargedwith the compulsory arbitration of certainlabor cases. There is nothing in the law thatprohibits these labor arbiters from also acting asvoluntaryarbitratorsaslongasthepartiesagreetohavehimhearanddeicedtheirdispute

4. ThirdULPinbargaining:badfaith• Bargaining deadlockmay also arise because of lack of good faith in

bargaining• Good faith bargaining demands more than sterile and repetitive

discussionofformalitiesprecludingactualnegotiation,etc.Itrequiresa sincere effort to reach agreement, although it does not requireagreementitself

• Dutytobargaindoesnotendwiththenegotiationoftheagreement• Inviting employees to disregard and by‐pass the union in seeking

redress of their grievances, notwithstanding the establishment of agrievanceprocedureintheCBA,hasbeenheldaviolationofthedutytobargainingoodfaith

• Employer cannotbe guilty of a refusal to bargain if theunion is notitselfbargainingingoodfaith

• There is no occasion to consider the issue of good faith if a partyrefuseseventonegotiateinfactaboutanyofthemandatorysubjects

• Determinationingoodfaitho Question whether a party has met his statutory duty to

bargainingoodfaithturnsonthefactsoftheindividualcase.Thereisnopersetestofgoodfaithinbargaining

o Good/bad faith is an inference to be drawn from the factsandislargelyamatterfortheNLRB’sexpertise

o Nestle case:unioncharged theemployerwithbargaining inbad faith because it refused to negotiate the retirementprogram,courtdidnotseethecompany’srefusalasbadfaithinbargaining.Thecourtreiteratesthatthereisnopersetestofgoodfaithinbargaining

o Finding of bad faith must be based entirely upon aconsiderationofthenegotiationsasawhole

An employer’s entire course of conduct or thetotalityof circumstancesmay showa lackof goodfaith, although none of its specific acts amount totheprescribedconduct

o Afaircriterionofgoodfaithincollectivebargainingrequiresthatthepartiesinvolveddealwitheachotherwithopenandfairmind and sincerely endeavor to overcomeobstacles ordifficulties existing between them to the end thatemploymentrelationsmaybeestablishedandobstructiontothe free flow of commerce prevented. Mere pretendedbargainingwillnotsuffice!!

• Whencanbargaininginbadfaithoccur?o If one will be charged with bargaining in bad faith, the

chargeshouldberaisedwhilethebargainingis inprogress.When the bargaining is finished and the CBA has beenexecutedvoluntarilybytheparties,achargeofbargaininginbadfaithistoolateanduntenable

o SamahangManggagawa v.NLRC:With the executionof theCBA, bad faith bargaining can no longer be imputed uponany of the parties thereto. All provisions in the CBA aresupposed tohavebeen jointlyandvoluntarily incorporatedtherein by the parties. The CBA is proof enough that theemployerexertedreasonableeffortofgoodfaithbargining

• Instances of bad faith: delay of, or imposing time limit on,negotiations

o Anunwarranteddelay in thenegotiationsmaybe evidenceofbadfaithonthepartoftheemployer

o Clearly,anemployer’srefusaltobargainwithaunionisnotingoodfaith,ifmotivatedbyadesiretogaintimesoastobeabletounderminetheunion

o Whereanemployerrefusedtobindhimselfcontractuallyasto wage rates, hours of work, holidays, vacations andbonuses,insistingupontherighttograntsuchconditionsofemployment as gratuities, and rejected a clause againstlockouts,hehasdemonstratedhisbadfaithandhisrefusaltobargain. The employer can’t insist uponwithdrawing thesemattersfromthesphereofcollectivebargaining.Norcanheinsist upon reserving to himself the right to alter, at hisdiscretion, existing practices with respect to thesemattersforcollectivebargaining

o Lackofgoodfaith is indicatedwheretheemployerengagesinULPwhilebargainingwiththeunion;whereitengagesindilatory tacticsduringnegotiations;orwhere it institutesawage cut by unilateral action and without consulting themajorityrepresentative

o EmployercommitsULPbyfailingtovestitsnegotiatorswithsufficient authority to make agreements on their owninitiative,ortoaccepttentativelycommitmentswhichwouldhaveanyreasonablelikelihoodoffinalacceptance

o Employer’s duty to accept in good faith the procedure ofcollective bargaining includes an obligation to have hisrepresentatives available for conferenceswith the union atreasonabletimesandplaces

o There is also refusal to bargain when the employerconductedthenegotiationsthroughasuccessionofcompanyofficials, each of whom in turn disclaimed authority toconcludeaCBA

o Nonetheless,theprioradjudicationofbadfaithonanearlieroccasion is not itself substantial evidence of present badfaith


o Company’s refusal tomake counter‐proposal to theunion’sproposedCBAisanindicationofbadfaith(KiokLoy)

o Mere filing of a petition for certification election does notipso facto justify the suspension of negotiation by theemployer

• Badfaith:surfacebargaining;shiftingbargainingpositions;blueskybargaining

o Surface bargaining, a sophisticated pretense in the form ofapparent bargaining, does not satisfy the statutory duty tobargain

Collectivebargaining isnotsimplyanoccasion forpurely formalmeetingsbetweenmanagementandlaborwhileeachmaintainsanattitudeof“takeitorleave it”, but presupposes a desire to reach anultimate agreement to enter into a collectivebargainingcontract

An employer’s proposals which could not beofferedwith any reasonable expectation that theywouldbeacceptedbytheunionconstitutesurfacebargaining

Surface bargaining is not easy to determine. Ithoversbetweenbargaining inbad faith (ULP)andmerehardbargaining(NOTULP)

o Standard Chartered Bank Employees Union (NUBE) v.Confesor

TheUnionallegedthattheBankviolateditsdutytobargain when it engaged in surface bargainingwithout any intent of reaching an agreement, asevident in the Bank’s counter‐proposals. Unionclaims that out of the 34 economic provisionspresented, Bank made only 6 economiccounterproposals

Surface bargaining is defined as going through themotions of negotiating without any legal intent toreachanagreement.Thedeterminationofwhetherapartyhasengagedinunlawfulsurfacebargainingisusuallyadifficultonebecauseitinvolves,atbottom,aquestionoftheintentofthepartyinquestion,andusually such intent can only be inferred from thetotalityofthechallengedparty’sconductbothatandaway from the bargaining table. It involves thequestion of whether an employer’s conductdemonstrates an unwillingness to bargain in goodfaithorismerelyhardbargaining.

Here, theunionwasnotbeenable to showthat theBank had done acts, both at and away from thebargaining table. Admittedly, the parties were notabletoagreeandreachedadeadlock.However,itisemphasized that the duty to bargain does not

compeleitherpartytoagreetoaproposalorrequirethemakingofaconcession

Likewise, the employer is not guilty of blueskybargainingormakingexaggeratedorunreasonableproposals. Hence, union is also not guilty of ULPbecause the employer failed to show that theeconomic demands made by the union wereexaggeratedorunreasonable

o Repeated shifts in position and attitude on the part of anemployer whenever a tentative agreement is reached areevidenceofarefusaltobargaincollectivelyingoodfaith

o Where the employer completely repudiated the agreementreached by its negotiators at the bargaining table andsubsequentlymadeanofferwhichwas inferior to its initialproposals to theunion, thecompanywasheldguiltyofbadfaithbargaining

• Badfaith:inflexibledemands;strikeamidnegotiationo LakasngManggagawangMakabayanv.MarceloEnterprises

Union is guilty of bargaining in bad faith, not theemployer. The parties had a total of 5 conferencesforcollectivebargaining.Itisworthconsideringthatthefirststrikewasstagedlessthanaweekafterthe4th CBA conference and without any benefit of anypreviousstrikenotice.The first strikewas thusheldwhilethepartieswereintheprocessofnegotiating.There is reason to believe that the first strike wasstaged only for the purpose of compelling thecompany toaccede to the inflexibledemandsof thecomplainantLAKAS.

Thecompanies’ refusal toaccedeto thedemandsofLAKAS appears to be justified since there is noshowingthatthesecompanieswereinthesamestateoffinancialandeconomicaffairs

• Badfaith:boulwarism;takeitorleaveitbargainingo NLRBv.GeneralElectricCo.UnitedStatesCASecondCircuit

Afterastrikewhichresultedinasettlementwhichthe company regarded as extremely costly, itdeveloped a new bargaining policy referred to asBoulwarism (named after a VP for personnelrelations).Thenewplanwas threefold–companywoulduse its localmanagementpersonnel tohelpdeterminethedesiresoftheworkforceonthetypeand level of economic benefits; these weretranslated by company into proposals; companythen attempted to “sell” its proposals to itsemployees and the general public through apublicity campaign in plant newspapers, bulletins,letters, TV and radio and personal contact.Company announced in negotiations that itrejected the usual “horse trading” approach to


bargaining, with each side eventuallycompromising initial unreasonable positions; itadvertiseditsinitialproposalsas“fair”and“firm”

Then, the Board found an overall failure of goodfaith bargaining inGE’s conduct. TheBoard foundthat GE’s stance and conduct were designed toderogatetheunionintheeyesof itsmembersandthe public at large. This plan had 2 major facets:first,atake‐it‐or‐leave‐itapproach(firm,fairoffer)to negotiations in generalwhich emphasized boththepowerlessnessanduselessnessoftheUniontoits members, and second, a communicationsprogram that pictured the company as the truedefender of the employees’ interests, furtherdenigrating the union, and sharply curbing thecompany’sabilitytochangeitsownposition

TheBoulwareapproachisthattheproductor“firm,fair offer” must be marketed vigorously to the“consumers”oremployees,toconvincethemthattheCompany,andnottheUnion,istheirrepresentative.Thecommandof theBoulwareapproachwasclear:employeesandthegeneralpublicmustbebarragedwith communications that emphasized thegenerosity of theoffer, and restated the firmness ofGE’s position. A genuine desire to reach a mutualaccommodation might, on the other hand, havecalledforGEtowaitUnioncommentsbeforetakingastandfromwhichitwouldbedifficulttoretreat.

• NotbadfaithtoproposemodificationstotheexpiringCBAo “Toterminateormodify”(Article253)o Modification may mean addition to, subtraction from, or

other ways of changing the contents of phraseology ofcontentsoftheexpiringCBA

o But whichever way it is proposed to go, the proposedchangesrequirehonestjustification

o Since the modification is to be done through negotiationrather thanbymanagement’s soledecision, theprohibitionunder Article 100 on nondiminution of benefits does notapply

o Note, incidentally, that themodification or renegotiation ofthe CBA is covered in Article 253. The renegotiation ispreceded by a 60‐day notice. This period should not bemistaken for the 60‐day period to file a petition forcertificationelectionunderArticle256.

• Givingofinformationo Partofgood faithbargaining,andamethodtoexpedite the

process, is supplying information to the other party, asrequiredbylaw

o Anemployerisunderaduty,uponrequestofthebargainingrepresentative,toprovideinformationrelevanttotheissuesatthebargainingtable

o Refusal to provide relevant information after the same ahsbeen requested constitutes per se violation of the duty tobargain

o Info such as company’s financial statements, data ofemployees in thebargainingunitsuchasnames,addresses,andsenioritystanding

o Inordertoassurethatfinancialstatementssubmittedbytheemployer may be deemed to fairly reflect the company’sfinancial condition, the company accountant may berequired to disclose the existence of factors that woulddistort the accuracy of the statements as well as their neteffectupon the financial statements. Suchdisclosurewouldnot require the employer to sacrifice the confidentiality ofhisrecords

o Employer’s duty to supply the bargaining representativewithinfodoesnotariseuntiltheunionmakesarequestorademandthattheinfobefurnished

o Duty to furnish info is not an obligation imposed onemployersalone;asimilardutyisowedbyunions

5. FourthULPinbargaining:grossviolationofthecontract• Occurswhenthecollectivecontractisalreadyinplace• Implementationstage–atthisstage,thecollectivebargainingprocess

isnotyetover,andthedutytobargainisstilloperativebecausesuchdutyfurtherrequiresfaithfuladherencetothecontractualprovisions

• ViolationofthecontractamountstoULP,iftheviolationisgross6. RatificationbytheCBU;mandatoryrequirements

• Agreementnegotiatedby theemployees’bargainingagent shouldberatified or approved by the majority of all the workers (not justmajorityoftheunion)inthebargainingunit

• Ratificationandthemannerofdoingitaremandatoryo Requirement topost theCBA in2 conspicuousplaces for5

days• Invalidratification

o AssociatedLaborUnion(ALU)v.FerrerCalleja There was failure to post the CBA, with the

petitionerclaiming that theexistenceof the illegalstrike staged by SPFL had become impossible tocomplywiththepostingrequirement.

This justification is unacceptable. In the first place,thepostingofcopiesoftheCBAistheresponsibilityof the employer which can easily comply with therequirement through a mere mechanical act. Thepurposeoftherequirementispreciselytoinformtheemployees in the bargainingunit of the contents ofsaid agreements so that they intelligently decidewhethertoacceptthesameornot.

Besides181/281whoratifieddenydoingso


• Whenratificationnotneededo NotneededwhentheCBAisaproductofanarbitralaward

by appropriate government authority or by a voluntaryarbitrator. The arbitral award may result from voluntaryarbitration under Article 262 or from the secretary’sassumption of jurisdiction or certification of the dispute totheNLRC,underArticle263(g)

To require ratification of CBA in case of arbitralawards will be inconsistent with the nature ofarbitrationasadispute‐settlementdevice

But note that the arbitral award is not beyondquestion.Certiorarionpropergroundsisavailable

o InanyofthosesituationstheCBAstillneedstobepostedin2conspicuousplacesintheworkplace,butthepostingisfortheinfoof,andnotratificationby,theemployeesaffected

o CBAhastoberegisteredwiththeDOLEregionaloffice• Ratifiedbutunsigned

o ACBAwasheldeffectiveonratificationbyunionmembers,even without signature by the union president or unionsecretary‐treasurer,notwithstandingacontractualprovisionthat the agreement is not valid unless so countersigned,because lack of the purely ministerial act of signing theformal contract did not obviate the fact that there was abindingcontract

• Unratifiedbutimplementedo PartiestoaCBAarerequiredtofurnishcopytheappropriate

Regional Office with accompanying proof of ratification bythemajorityofalltheworkersinthebargainingunit

o But it is iniquitous toreceivebenefits fromaCBAand laterondisclaimitsvalidity

7. Executionofcontract• Article231isnotclearonwhethertheratificationorexecutioncomes

first• Inpractice,sequenceusuallydependsonthelikelihoodofratification

asjudgedbytheuniono If union strongly feels there will be no problem, CBA is

finalized,signedbytheparties,andposted.o If there isnosuchcertainty,CBA isdrafted, initialedbythe

parties,andthis“cleandraft”isposted• If andwhen ratified, theCBA is finalizedand formal signing follows.

Partiesindicatedateofexecutionandeffectivitydate.• Inanycase,theimportantthingistheratification,notthesequenceof

steps• A party to collective bargaining may be required to sign a contract

where the agreement has been reached by the parties and only oneparty’s refusal to execute a contract is preventing its being carriedintoeffect.SuchrefusalisanULP

• Whileanemployermayberequiredtosignawrittencontractoncehereachesanagreementwith the labororganization,no signingwouldberequirednoranycontractbeenforced, if the facts reveal that the

discussion of provisions prior to a signing are merely preliminaryexpressions not constituting a contract and that the parties do notintendtheagreementtobeoperativebeforetheexecutionofwriting

• Unwrittenorunsignedagreemento CBA is valid though not reduced to writing or signed, if

neitherpartyrequestsawritteninstrumento Evenifitwasoriginallycontemplatedthatsignatureofboth

parties would be required for there to be an effectivecontract,thisrequirementcanbewaived

o “Executing a contract incorporating such agreements ifrequestedbyeitherparty”(Article252

• Effectsofsigningonotherdisputeso Considering that the evident purpose of the collective

agreement is to restore industrial peace by settling allprevious controversies and that such purpose would beabortediftheunionwereallowedtopreservethedisputeonaccrued vacation leaves and considering that the right topayment of accrued vacation leaves is waivable, the unionclaimforsuchpaymentofaccruedvacationleavesshouldbedeemedvalidlyandactuallyrenouncedbyitunderitsCBA

o ZipperClause8. RegistrationofCBA

• Collective agreement, having been properly ratified, should beregisteredwiththeDOLERegionalOfficewherethebargainingunionisregisteredorwhereitprincipallyoperates

• Article231– registrationwithin30calendardays fromexecutionoftheagreement.Multi‐employerCBAshallbefiledwiththeBureau

• FailuretoregistertheCBAdoesnotmakeitinvalidorunenforceable.• Non‐registration,however,rendersthecontract‐barruleinoperative• Onceitisdulyenteredintoandsignedbytheparties,aCBAbecomes

effective asbetween theparties regardless ofwhether the samehasbeencertifiedbytheBLR

• Registrationrequirementso TheapplicationforCBAregistrationshallbeaccompaniedby

the original and two (2) duplicate copies of the followingdocuments which must be certified under oath by therepresentative(s) of the employer(s) and labor union(s)concerned

Thecollectivebargainingagreement; A statement that the collective bargaining

agreement was posted in at least two (2)conspicuous places in the establishment orestablishmentsconcernedforat leastfive(5)daysbeforeitsratification;and

A statement that the collective bargainingagreement was ratified by the majority of theemployees in the bargaining unit of the employeroremployersconcerned.

o No other document shall be required in the registration ofcollectivebargainingagreements.


o Applicationmaybedenied if thesupportingdocumentsareincompleteornot verifiedunderoath.Thedenial, if by theRegionaloffice,isappealabletotheBureauwithin10daysortotheSecretaryifthedenialisbytheBureau

9. Implementation,thenrenegotiation• Implementationfollowsexecutionandregistration• Frequently, implementation starts even before the contract is

registeredindicatingthatregistrationisaformalstepinthecollectivebargaining process but not a prerequisite to its validity andenforceability

• Article 253 emphasizes faithful adherence to the contract as acontinuationofthedutytobargain

• Neglecting, deviating from or violating the terms of the CBA isconsideredanULPunderArticle248inrelationtoArticle261

• Renegotiationappliesonlytotherenegotiableprovisions–thosethatdo not pertain to the identity and political status of the bargainingunion (because this is taken up with the union membership); non‐politicalandnon‐representationalissues

10. AutomaticrenewalofCBA• “Automaticrenewal”–partiesshallcontinuetheCBAin“fullforceand

effect”untiltheyreachanewagreement• NewPacificTimberv.NLRC

o NationalFederationofLabor(NFL)wasbargainingrep.NFLfiledacomplaintforULPonthegroundofrefusaltobargain.Arbiter found company guilty of ULP. NLRC dismissedcompany’sappeal.

o Solaborarbiterdirectedthecompanytopaytheemployeesthe benefits under the CBA. They were paid. But thenanother group of employees filed a petition for relief,claiming that theywerewrongfully excluded fromenjoyingthe benefits under the CBA. So NLRC ordered that they bepaidalso.Companyclaimsthattheyarenotentitledbecauseemployees hired after the termof a CBA are not parties tothe agreement, and therefore, may not claim benefitsthereunder, even if they subsequently becomemembers ofthebargainingunit

o (CBA expired in 1984) Company claims that since theprovisions foryearlywage increaseended in1984, there isno contractual basis for the grant of CBA benefits such aswageincreasein1985andsubsequentyears.Companyalsoclaims that it wasn’t their fault that no CBA was enteredpendingappeal

o Petitionerscontentionisuntenable.ItisclearthatuntilanewCBA has been executed, parties are dutybound to keep thestatus quo and to continue in full force and effect the termsandconditionsoftheexistingagreement.Noexceptions.

o It isdutyofparties to theCBA tokeep the statusquoand tocontinueinfullforceandeffectthetermsandconditionsoftheexisting agreement during the 60 day period and/or until a

newoneisreachedbytheparties.Toruleotherwisewouldbetocreateagapduringwhichnoagreementwouldgovern.

Article253A.TermsofCBA.

1. Effectivityandretroactivity• Effectivity date depends on whether the CBA is the first CBA or a

renegotiatedCBAo If first ever CBA, effectivity is whatever the date the

partiesagreeono The date is important particularly in relation to wage

increase (if any) because a long retroaction period willmeansizeablebackpaytoemployees

o IftheCBAisrenegotiatedCBAtoreplacetheexpiredone– If renegotiation is finished and the new CBA is

concludedwithin6monthsfromtheexpirydateofthe old one new CBA takes effect on the datefollowingsuchexpirydate

IfNOnewCBAwascompletedwithinthat6‐monthperiodnewCBAwillNOTautomaticallyretroact.

If it will retroact at all, the retroactiondate will have to be agreed upon by thenegotiatingpanels

The determining point is the date thepartiesagreed,notthedatetheysigned

EvenwithoutanywrittenevidenceoftheCBA, valid agreementmayexist from themoment theminds of the partiesmet onallmatterstheysetouttodiscuss

• Duration depends on whether the subject provision isrepresentationalornon‐representational

• EffectivityofCBAconcludedaftersixmonths fromexpirationofoldCBA

o The lawdoesnotspecificallycover thesituationwhere6months have passed but the parties have reached noagreementwithrespecttoeffectivity

o Onesuchprovision is theprincipleofholdover– that intheabsenceof anewCBA, thepartiesmustmaintain thestatus quo andmust continue in full force and effect theterms and conditions of the existing agreement until anewagreementisreached

The law prevents the existence of a gap in therelationship between the collective bargainingparties

o Intheabsenceofanagreementbetweentheparties,then,an arbitrated CBA takes on the nature of any judicial orquasi‐judicialaward–operatesandmaybeexecutedonlyprospectively unless there are legal justifications for itsretroactiveapplication


Yet, different rulings. In Manila Electric, it wasapplied retroactively (to the first day after the6monthperiod following theexpirationof the lastdayofCBA).InUnionofFiliprov.NLRC,theNLRCgavetheCBAaprospectiveeffect.

2. DurationofCBA• Representationaspect–5years

o Refers to identity and majority status of the union thatnegotiated theCBAas theexclusiverepresentativeof thebargainingunit

• Allotherprovisions–3yearso The rest of the CBA, economic as well as non‐economic

otherthanrepresentationalo 3yearsastoprotecttheeconomicgainsoftheworkers

• Uponexpiryof the3year economicprovisions, forhowmanyyearsshould the renegotiatedprovisions be?What is the termof the neweconomicprovisions–isit2yearsor3?

o Ifuponexpirationofthe5‐yearrepresentationprovision,a new union wins, then the new union will have toadministertheCBAforitsremainingoneyear,afterwhichthenewunionmaynegotiatewiththeemployerforanewCBA

o There is no mandate, although there is the expectation,that the renegotiated economic provisions should againlastfor3years.

o Neither is there a prohibition tomake it good only for 2years tomake it coincidewith theexpirationon the fifthyearoftherepresentationprovision

o Choice between 2 or 3 years will be influenced bysituationalfactorsincludingeconomicandpoliticalfactorsaffectingtheparties

• SanMiguelCorp.EmployeesUnionPTGWOv.Confesor,SMCo UnionconcludedaCBAwithSMC to takeeffectupon the

expirationofthepreviousCBA.SMCthenrestructuredthecompany. The Magnolia spin‐off was created.Notwithstanding thespin‐offs, theCBAremained in forceandeffect.

o CBArenegotiation.Unioninsistedthatthebargainingunitof SMC should include the employees of the spun‐offcorporations and that the renegotiated terms shall beeffective only for the remaining period of 2 years. SMCcontended that the members of Magnolia and SMFIautomaticallyceasedtobepartofthebargainingunitandthattheCBAshouldbeeffectiveforthreeyears

o Issue:W/N thedurationof the renegotiated termsof theCBAis3yearsor2?

o The framers of the lawdid not give a fixed termas to theeffectivityofthetermsandconditionsofemployment.Itcanbe gleaned from their discussions that it was left to theparties to fix the period. As amatter of policy, the parties

are encouraged to eneter into a renegotiated CBA with atermwhichwould coincidewith theaforesaid5year termofthebargainingrepresentative.

o In the event however, that the parties, by mutualagreement,enterintoarenegotiatedcontractwithatermof 3 years or onewhich does not coincidewith the 5 yearterm, and said agreement is ratified by majority of themembersinthebargainingunit,thesubjectcontractisvalidand legal and therefore binds the contracting parties. Thesamewillhowevernotadverselyaffecttherightofanotherunion to challenge the majority status of the incumbentbargaining agent within 60 days before the lapse of theoriginal5yeartermoftheCBA.

o NograveabuseofdiscretiononthepartoftheSecretaryofLaborinrulingthattheeffectivityoftherenegotiatedtermsshall be for 3 years. BUT the memorandum does notrequireeithertwoorthreeyears;rather,itrecognizestheprimacyof “mutual agreement” between theparties. Theparties have to agree clearlywhether those renegotiatedprovisionsaretolastfor2yearsor3.

3. ExtensionofeffectivityofCBA,whenvalid• OneyearextensionvalidbecauseitwasapprovedbytheUnionina

referendumwhichwasproperlysupervisedbytheDOLE.• TenyearsuspensionofCBA

o Riverav.Espiritu PAL pilots affiliated with the Airline Pilots

Association of the Philippines went on a 3‐weekstrike.PALadoptedarehabplananddownsizeditslabor force by more than 1/3rd. PALEA, anotherunion,wentonstriketoprotesttheretrenchment.

PALEA proposed terms and conditions, subject toratificationbythegeneralmembership,includinga10‐year suspensionof theCBA and entitlement tothreeseatsinthePALboard.Itwasapproved.

Issue: Is the 10‐year suspension of the CBAunconstitutionalandcontrarytopublicpolicy?NO

Theagreementwastheresultofvoluntarycollectivebargaining negotiations undertaken in the light oftheseverefinancialsituationsfacedbytheemployer.Article 253A has a twofold purpose. One is topromote industrial stability and predictability.Another is to assign specific timetables whereinnegotiations become a matter of right andrequirement. Nothing in the article prohibits theparties fromwaiving or suspending themandatorytimetablesandagreeingon the remedies toenforcethe same. The right to free collective bargaining,afterall,includestherighttosuspendit.

The SC does not agree that the agreement violatesthe5yearrepresentationlimit.Underthearticle,the


representation limit for the exclusive bargainingagentappliesonlywhenthereisanextantCBAinfullforce and effect. In the instant case, the partiesagreedtosuspendtheCBAandput inabeyancethelimitontherepresentationperiod.

Article254.Injunctionprohibited.

1. Noinjunctionpolicy• Aninjunctionmayrequireorrestrainthedoingofanact• Labordisputesaregenerallynotsubjecttoinjunction.Iftherulewere

otherwise, it would contradict the declared policy under Article211(a) “to promote and emphasize the primacy of free collectivebargaining and negotiations, including voluntary arbitration,mediation and conciliation, as modes of settling labor or industrialdisputes”

• Thepolicy,basically,isfreedomattheworkplaceo Ifthereisadisputebetweentheparties,theresponsibilityto

solve it devolves upon them primarily, not upon thegovernment

• Governmentinterventionistheexception;ratherthantherule• Any injunctive order in “non‐national interest” disputes can be

directed only against the illegal acts being committed in connectionwiththelabordispute;itcannotbedirectedagainstthedisputeitself.

• If an injunction is called for, the issuance has to pass through arigorousroutedefinedinArticle218(e)

• Article 254 itself indicates that where Article 264, regardingprohibited acts, is being violated, the anti‐injunction policy will bebrushedasideandawritofinjunctionorrestrainingorderwillissue

• Reasonofthenoinjunctionpolicyo The issuance of an injunction for any purpose in a labor

disputewillgenerallytipthescalesofthecontroversyo Issuance of an injunction in early phases of a strike can

criticallysway thebalanceof theeconomicstruggleagainsttheunion

o Even preliminary injunction is an effectual strike‐breakingweaponbecausesomuchtimeelapsesbetweentheissuanceofapreliminaryinjunctionandthetimewhenafinaldecreecanbereviewedonappeal

o Injunctions have generally not proved to be an effectivemeansofsettlinglabordisputes

• Injunctionissuedbyregularcourt,whenpropero Regular courts areWITHOUT authority to issue injunction

orders incases involvingororiginatingfromlabordisputeseven if the complaint was filed by nonstriking employeesandtheemployerwasalsomadearespondenttotheactionorevenifthecomplainantisacustomerofthestrike‐bound

employerorasistercompanyofthestrike‐boundemployer,whosepremiseswerepicketedbystrikers

o Where the issue in an action filed in the RTC was tied upwith an ULP case pending in the NLRC, the action wasoutside the jurisdictionof the regular courts even if actsofviolence, intimdation and coercion were imputed to theUnion. It should have been obtained from the court whichwas empowered to restrain such acts. (Such rule preventsmultiplicityofsuits)

BUTaregulatcourtmayissueinjunctiontoprotectthe interestofneutralemployers incommonsituspicketing

o RepublicFlourMillWorkersAssociationv.Reyes Uniondeclaredastrikeagainsttheiremployersand

picketed the premises, preventing the peacefulpassingof otherpersonsnot connectedwith theiremployers, one of which was the respondentcompany,alesseeofaparceloflandownedbythestrike‐bound employer. CFI issued an injunction,ordering the union to desist from preventing theemployees of respondent Company from enteringitspremises

SC upheld the validity of the injunction. TheCompany,AIAFlourMills, isaseparateanddistinctentity from the Republic Flour Mills, Inc. includingthebusinessinwhichitengagedandthepicketingbythepetitionerUnionshasnoconnectionwhatsoeverwith respondent AIA Flour Mills. There is no labordisputebetweentheAIAandtheunionandneitheristhereanemployeremployeerelationbetweenthem.Hence, theCFI didnot issuea labor injunction.Thecourtmayissueaninjunction,whethertemporaryorpermanent. The preliminary injunction issued byrespondentjudgewas,therefore,onethatwaswithinitsjurisdictiontoissuepursuanttotheprovisionsoftheRulesofCourt.

Besides, thewritofpreliminary injunction issuedbythe CFI did not in any way curtail the right of theunion to picket because thewrit simply and clearlycommanded the petitioner unions to desist frompreventing petitioners employees from entering thepremises

TitleVII:Collectivebargainingandadministrationofagreement(cont’d.) [Part2.Employeeparticipationandrepresentation]

Article255.Exclusivebargaining representationandworkers’participation inpolicyanddecisionmaking


1. Workers’participatoryrights:itsconstitutionalmeaning• What is themeaningorextentof theworkers’ right toparticipate in

policyanddecisionmaking?o 1986ConstitutionalCommission:torefertoparticipationin

grievance procedures and voluntary modes of settlingdisputes and not to formulation of corporate programs orpolicies

European Work Councils: highly successful workcouncils established at the level of the enterprisewhere largely non‐adversarial issues are takenupso that before they can mature into adversarialissues, laborandmanagement, in thatatmosphereofcooperationthroughaworkcouncil,areable tocometoanearlyagreement,whichbothsidesandconsider helpful not only for industrial peace butalso for productivity fora within companies orworkcouncilswillpreciselygivebothworkersandemployers the opportunity to considermatters ofmutualinterest

Three levels of employee participation [in whichemployees could influence management in theirdecision‐making]–

Corporate level: strategic policiespertaining to the mergers, acquisitions,pricing and marketing policies,dispositionofprofitsandthelike

Plantordepartment level:administrativedecisions are made (hiring, firing, andpromotionofemployees,costandqualitycontrol,resourceallocations,etc)

Shop‐floor level: operating decisions aremade (scheduling of work, safetyregulations, work methods, training ofnewemployees)

Intended meaning of the provision: barestminimum, the workers are consulted on matterspertaining to their interests and the parameterswould be references to the negotiations in thecollectivebargainingagreementanditsterms

o Insum,constitutionalcommissioners:thatworkers’righttoparticipate does not mean participation in chartingcorporateprogramsandpolicies

o But,theSCsaidthatemployeesmaydemandparticipationinmakingthecompany’scodeofdiscipline.

The SC differentiated management prerogativesregarding business operations and those whichaffect the employees’ rights (includesmaking of acodeofconductinwhichemployeeshavetherighttoparticipate)

But what level of participation? SCdeclared that employees possess the“righttoparticipateinthedeliberationofmatterswhichmayaffecttheirrightsandthe formulation of policies relativethereto

• Employees’participationinformulatingtheCodeofDisciplineo PALv.NLRC

PAL completely revised its Code of Discipline.Subsequently, some employees were subjected todisciplinarymeasures for alleged violations of therevised code. PALE filed for ULP with arbitraryimplementationofPAL’sCodeofDisciplinewithoutnotice and prior discussion with union bymanagement

Issue:W/N employees should be consulted in themakingofanewCodeofDiscipline?YES

Theexerciseofmanagementprerogativeswasneverconsidered boundless. It must be without abuse ofdiscretion. A close scrutiny of the Code of Conductrevealsthattheprovisionsarenotallpurelybusinessoriented nor do they concern the managementaspectofthebusinessofthecompany.

Verily, a linemust be drawn betweenmanagementprerogatives regarding business operations per seandthosewhichaffecttherightsoftheemployees.Intreatingthelatter,managementshouldseetoitthatits employees are at least properly informed of itsdecisionsormodesofactions.

The CBA may not be interpreted as cession ofemployees’righttoparticipateinthedeliberationofmatters which may affect their rights and theformulationofpoliciesrelativethereto.Andonesuchmatteristheformulationofacodeofdiscipline

o ButinSanMiguelBreweryv.OPLEandGTEDirectoriesCorp.v.Sanchez,theauthorityandpoweroftheemployertomakepolicy, without employees’ participation, is recognized andupheld.

Note that in these two cases, the subject of thepolicyissalesandoperationwhileinthePALcase,the subject is employees’ conduct and discipline.The subject affects the employees’ tenure; hence,employees’participationisrequiredinshapingthepolicy

o Participationdoesnotmeanco‐managementofthebusiness2. Workers’participationastherealobjective;theLMC

• The law, while promoting collective bargaining, really aims atemployeeparticipationinpolicyanddecision‐making.Therealaimisparticipationinwhateverformitmayappear.Collectivebargainingisjustoneoftheformsofemployeeparticipation


• Hence, it is incorrect to say that thedevicewhich secures industrialdemocracy is collective bargaining and no other. It is equallymisleading to say that collective bargaining is the end‐goal ofemployeerepresentation

• ThisiswhyArticle255reservestherightofanindividualemployeeorgroup of employees (un/unionized or inside or outside a union) topresent grievances to their employer at any time, even withoutcollectivebargaining

• But an individual representation in dealing or bargaining with theemployer isweak. Hence, the law provides for another forum – thelabor‐managementcouncil(LMC)asidefromorinsteadofaunion

o LMC can exist where there is no union or co‐exist with aunion

o Itcannotandmustnotreplaceauniono Whilealaborunionishamstrungbysuchlegalprescriptions

suchasformalregistration,anLMCneednotbeheldbackbyanyofthese.

o It can represent employees across the enterprise, presentgrievances regardless of the grievant’s rank, and profferproposalsunhinderedbyformalities.

o The LMC, in short, can deal with the employer onmattersaffectingtheemployees’rights,benefitsandwelfare.

o AnLMCisachallengeatmaturity,conviction,andvigilance–maturityinunderstandingandrespectingtherightsnotonlyoftheworkersbutalsooftheemployer.

• Department’spromotionofLMCandothercouncilso The Department shall promote the formation of labor‐

management councils in organized and unorganizedestablishmentstoenabletheworkerstoparticipateinpolicyanddecision‐makingprocessesintheestablishment,insofarassaidprocesseswilldirectlyaffecttheirrights,benefitsandwelfare, except those which are covered by CBA or aretraditionalareasofbargaining

o Department should also promote other labor‐managementcooperation schemes and, upon its own initiative or upontherequestofbothparties,mayassistintheformulationanddevelopment of programs and projects on productivity,occupational safety and health, improvement of quality ofwork life, product quality improvement and other similarscheme

o Organizedestablishmentworker’srepresentativesto thecouncil shall be nominated by the exclusive bargainingrepresentative

o No legitimate labor organization exists workersrepresentativeshallbeelecteddirectlybytheemployeesatlarge

3. Individualgrievance• Presence of an employees’ organization – a union, an LMC or other

forum – does not replace the individual employee’s right to pursue

grievances. Each employee retains the right to deal with his or heremployer,andviceversa

• Article255explicitlypreservesandrespectstherightofanindividualemployeeoranygroupofemployeestodirectlypresentgrievancestotheir employers at any time. Such individual rights cannot be takenawayevenbyaunion’sconstitutionandby‐laws

• American jurisprudence: however, the adjustment of the grievancesmustbeconsistentwiththetermsofthecurrentcollectivebargainingcontract.Moreover, thebargaining representativemustbe given theopportunity tobepresentat themeetingbetween theemployerandemployee

4. CBUdefined• At the enterprise level, there are 3 democratic devices provided by

lawo Airingofgrievanceevenbyan individualemployeedirectly

totheemployeranytimeo Participation in policy and decision‐making by employees,

whetherunionizedornoto Collective bargaining with the employer by unionized

employees• Collective bargaining that the law envisions occurs between the

employer and employees comprised in an appropriate collectivebargainingunit(CBU)representedbyaunion

• CBUisgroupofjobsandjobholdersrepresentedbytherecognizedorcertifiedunionwhenitbargainswiththeemployer.The“group”maycomprise all the supervisors or, separately, all the rank‐and‐filepopulationinthecompany

• But if a single unit (only one for all supervisors or only one for allrank‐and‐file)isnotfeasible,thelawallowssubgroupsasbargainingunits,providedonlythateachsub‐groupisappropriate.

o Appropriate if its members share substantially commonconcernsandinterests

• AccordingtoDO40‐03,bargainingunitreferstogroupofemployeessharingmutual interestswithin a givenemployerunit, comprisedofallorlessthanalloftheentirebodyofemployeesintheemployerunitor any specific occupational or geographical grouping within suchemployerunit

o Withinoneunittheremaybeoneormoreunionso The bargaining unit is not the same as, and usually is a

biggergroupthan,aunion• But only one union should represent the whole CBU in bargaining

withtheemployer.Thechosenunioniscalledthebargainingagent,itsprincipalbeingtheCBUmembersthemselves

• Bargainingunionhastobethemajorityunion,theonewheremajorityoftheCBUmembersbelong

o Majority status is determined through a union selectionprocess

• Representativeunion=bargainingunion;majorityunion;bargainingagent;bargainingrepresentative

5. Appropriatenessofbargainingunit;factorsconsidered


• The determination ofwhat constitutes a proper bargaining unit liesprimarilyinthediscretionoftheBureau,sincenoindividualfactorisgivenbylawdecisiveweight.

• Thebasictestofabargainingunit’sacceptability(orappropriateness)is whether it will best assure to all employees the exercise of theircollectivebargainingrights

o The most efficacious bargaining unit is one which iscomprisedofconstituentsenjoyingacommunityofinterest,whichmaybedeterminedby–

Similarity in the scale andmanner of determiningearnings

Similarity in employment benefits, hours of workandothertermsandconditionsofemployment

Similarityinthekindsofworkperformed Similarityinqualifications,skillsandtrainingofthe

employees Frequency of contact or interchange among the

employees Geographicproximity

Geographical location can be completelydisregarded if the communal or mutualinterests of the employees are notsacrificed

Continuityorintegrationofproductionprocesses Common supervision and determination of labor‐

relationspolicy Historyofcollectivebargaining Desiresoftheaffectedemployees Extentofunionorganization

• Bargaininghistorynotdecisivefactoro NAFLU v. Mainit Lumber Development Company Workers

UnionUnitedLumberandGeneralWorkersofthePhilippines Petitioner union allege that employer MALDECO

was composed of 2 bargaining units. Ministry ofLaborandEmploymentrecognizedtheexistenceof2 separate bargaining units (SawmillDivision andLogging Division). Employees wanted to have acertification election, in order to have just onebargainingrepresentative

While the existence of a bargaining history is afactorthatmaybereckonedwithindeterminingtheappropriatebargainingunit,thesameisnotdecisiveorconclusive.Otherfactorsmustbeconsidered.Thetest of grouping is community or mutuality ofinterests. This is so because “the basic test of anasserted bargaining unit’s acceptability is whetherornotitisfundamentallythecombinationwhichwillbest assure to all employees the exercise of theircollectivebargainingrights.”

As such, there is amutuality of interest among theemployees of the Sawmill and Logging Division.There may be differences as to the nature of theirindividual assignments but the distinctions are notenough to warrant the formation of a separatebargainingunit

• Exclusionofconfidentialemployeeso Philips Industrial Development Inc. v. NLRC and Philips

EmployeesOrganization NLRC committed grave abuse of discretion in

decreeing that PIDI’s service engineers, sales force,divisionsecretaries,allstaffofgeneralmanagementpersonnel and industrial relations department,secretaries of audit, EDP and financial systems areincludedwithintherankandfilebargainingunit.Allthese employees, with the exception of the serviceengineers and the sales force personnel, areconfidentialemployees.Assuch,therationalebehindthe ineligibility of managerial employees to form,assistorjoinalaborunionequallyappliestothem.

• Temporaryorparttimeemployeeso Temporaryemployeesareexcludedfrombargainingunitsof

workersincertainjobs.o In determiningwhether temporary or part‐time employees

aresufficientlyidentifiedwiththeregularemployeestohavea community of interest so as to be included in thebargaining unit, the NLRB considers the reasonablelikelihood that the temporary or part‐time employees willeventually become adequately identified in employmentwiththeothermembersofthebargainingunit

o Regularpart‐timeemployeesareincludedinthebargaininguniteven if theyarestudentsorwork less than20hoursaweek, or are regularly employed elsewhere unless theirworkschedulesaresoarrangedasnot toconflictwith full‐timeemploymentelsewhere

• Seasonalemployeeso Full‐time seasonal employees who have a reasonable

expectationofsubstantialseasonalemploymentfromyeartoyearhavebeenheldproperlyincludibleintheunit

o Part‐timeseasonalemployeeswhoreceivenoneofthefringebenefits enjoyed by full‐time employees have insufficientcommoninterestwiththeotheremployees

o Inretail stores,part‐timeemployeeswhoregularlyaverage4 hours or more per week for the last quarter before theeligibilitydatehavebeenheldincludibleintheunit.

o Casual employees are excluded. BUT, casual laborersworkingforanemployerwhooperatesareferralsystemforunskilledlaborhavebeenheldanappropriateunit

• Probationaryemployees


o Fact that an employee is given a classification such asbeginner, trainee, or probationary employee, and the factthat contemplation of permanent tenure is subject tosatisfactory completion of an initial trial period, areinsufficient to warrant such employee’s exclusion from abargainingunit

o Eligibility of probationary employees does not turn on theproportion of such employeeswho, willingly or not, fail tocontinue to work for the employer throughout the trialperiod

6. Referendumwhereinterestsaredissimilar• Desireoftheemployees;theGlobeDoctrine

o Relevancy of thewishes of the employees concerning theirinclusion or exclusion from a proposed bargaining unit isinherentinthebasicrighttoself‐organization

o Globedoctrine:whilethedesiresofemployeeswithrespecttotheirinclusioninbargainingunitisnotcontrolling,itisafactorwhichwouldbetakenintoconsiderationinreachingadecision

o GlobeMachine&StampingCo. 3unions(metalpolishersunion,machinistsunion,

federal labor union) filed representation petitionswith the NLRB. UAW‐CIO intervened, claiming torepresent all the production and maintenanceworkers

Boardfoundthatthepolishingandthepunchpressworkat theplantwasdone in separate areas, butthat the actual production at the plantwas highlyintegrated. Inaddition, it found that thehistoryofbargaining in the plant was inconclusive to showany clear pattern of preference or clearappropriateness of either plant‐wide or separateunits.

In view of the facts described, it appears that theCompany’s production workers can be consideredeitherasa singleunit appropriate for thepurposesofcollectivebargainingorasthreesuchunits.Hence,insuchacase,asthisone,wheretheconsiderationsaresoevenlybalanced,thedeterminingfactoristhedesire of the men themselves. Board orderedelections tobeheldseparately for themenengagedinpolishingandthoseengagedinpunchpresswork.Boardalsoorderedanelection for theemployeesofthe Company engaged in production andmaintenance, exclusive of the polishers and punchpress workers and of clerical and supervisoryemployees.

7. Singleor“employerunit”ispreferred• Oneemployerenterpriseconstitutesonlyonebargainingunit

• The more solid the employees are, the stronger is their bargainingcapacity

• Policy of the BLR to encourage the formation of an employer unitunlesscircumstancesotherwiserequire

• Proliferationofunionsinanemployerunitisdiscouragedasamatterof policy unless there are compelling reasons which would deny acertainclassofemployeestherighttoself‐organizationforpurposesofcollectivebargaining

• PagkakaisangmgaManggagawasaTriumphInternationalLumberv.FerrerCalleja

o Thereisnodisputethattheunionistheexclusivebargainingrepresentativeoftherank‐and‐fileemployees.

o Insteadof forminganotherbargainingunit, the law requiresthemtobemembersoftheexistingone.Theendsofunionismare better served if all the rankandfile employees withsubstantiallythesameinterestsandwhoinvoketheirrighttoselforganizationarepartofasingleunitsothattheycandealwith their employer with just one and yet potent voice. Theemployees’ bargaining power with management isstrengthenedthereby.

• Exceptionstooneunitpolicyo Forinstance,exclusionoftheemployeesfromtherank‐and‐

filebargainingunitandtheCBAisacompellingreason,foritcompletely deprived them of the chance to bargaincollectively with petitioner and are thus left with norecourse but to group themselves into a separate anddistinctbargainingunitandformtheirownorganization

o Recognition of exceptions takes into account the policy toassure employees of the fullest freedom in exercising theirrights

o One company‐one union policy must yield to the right ofemployees to formunions or associations for purposesnotcontrary to law, to self‐organization and to enter intocollectivebargainingnegotiations

8. Twocompanieswithrelatedbusiness• Twocorporationscannotbetreatedasasinglebargainingunitevenif

theirbusinessesarerelated• IndophilTextileMillWorkersUnionv.Calica

o Issue:W/N Indophil Acrylic Corporation is an extension ofIndophil Textile Mills, and, if so, whether the rank‐and‐fileemployeesof IndophilAcrylic shouldbe recognizedaspartofthebargainingunitofIndophilTextile

o The fact that the business of Indophil Textile and IndophilAcrylicare related, that someof theemployeesofTextilearethesamepersonsmanningandprovidingauxiliaryservicestothe units of Acrylic, and that the physical plants, offices andfacilitiesaresituatedinthesamecompoundarenotsufficienttojustifypiercingthecorporateveilofAcrylic


o It is grave abuse of discretion to treat two companies as asinglebargainingunitwhenthesecompaniesare indubitablydistinctentitieswithseparatejuridicalpersonalities.

o Hence,AcrylicnotbeinganextensionorexpansionofTextile,rankandfileemployeesatAcrylicshouldnotberecognizedaspartofthepetitionerunion.

• DLSU v. DLSUEA – SC affirms the findings of the voluntary arbitratorthat employeesof CSB shouldbe excluded from thebargainingunit ofthe rankandfile ofDLSU, because the 2 educational institutions havetheirownseparatejuridicalpersonality

• Subsidiariesandspunoffcorporationso Subsidiariesorcorporationsformedoutof formerdivisions

of a mother company following a bona fide reorganizationmayconstituteaseparatebargainingunit

o SanMiguelCorp.EmployeesUnionv.SMC,MagnoliaCorp.andSanMiguelFoods,Inc

Magnolia and SMFI were spun‐off to operate asdistinctcompanies.Undeniably,thetransformationof the companies was a management prerogativeandbusinessjudgment.Asaresultofthespin‐offs,each of the companies are run by differentmanagement teams including separate humanresources/personnel managers, each companyenforces its own administrative and operationalrules and policies, and each entity maintainsseparate financial statements and are auditedseparately from each other. Thus, Magnolia andSMFI became distinct personalities with separatejuridicalpersonalities.Thus,theycannotbelongtoasinglebargainingunit

In determining an appropriate bargaining unit, thetest of grouping is mutuality or commonality ofinterests. Considering the spinoffs, the companieswould consequently have their respective anddistinctive concerns in terms of the nature ofwork,wages, hours ofwork, etc. Interests of employees inthedifferentcompaniesperforcediffer.(SMC=beer;Magnolia = dairy products; SMFI = production offeeds and processing of chicken) The differentcompaniesmayhavedifferent volumesofworkanddifferentworkingconditions.Itwouldthenbebesttohave separate bargaining units for the differentcompanies where the employees can bargainseparatelyaccordingtotheirneedsandaccordingtotheirownworkconditions

9. Summationofsignificance• Bargaining unit is not the same as the union; theremay be several

unionsinonebargainingunit

• Determining the scope or membership of the bargaining unit issignificantandfar‐reachingbecauseitleadstothedeterminationalsoof–

o Employeeswhocanvoteinthecertificationelectiono Employees to be represented in bargaining with the

employero EmployeeswhowillbecoveredbytheresultingCBA

• DistinguishingtheCBUfromtheunionisimportantbecause–o InaCE,thevotersaretheCBU,whetherunionornonunion

memberso InCBAratificationthevotersaretheunit,notjusttheunion

memberso In strike voting, the voters themselves are themembers of

theunion,notalloftheunit

Article256.Representationissueinorganizedestablishments.

Article257.Petitionsinunorganizedestablishments.

Article258.Whenanemployermayfilepetition.

Article258A.Employerasbystander.

Article259.Appealfromcertificationelectionorders.

1. Determiningthebargainingunion:overviewofthemethods• To bargain with the employer, the employees in the CBU can be

representedbyoneandonlyoneunionwhichhas tobea legitimatelabororganization.

• Threemethodstodeterminethebargaininguniono Voluntaryrecognitiono Certificationelectionwithorwithoutrun‐offo Consentelection

• Theselectionofthebargainingagentmaytakeplaceinan–o Organizedestablishment

Enterprise where there exists a recognized orcertifiedsoleandexclusivebargainingagent

VoluntaryrecognitionisNOTpossible Petition to hold CE has to be filed within the

freedom period, which means the last 60 days ofthe5thyearoftheexpiringCBA inotherwords,the contest between unions comes at intervals ofroughly4yearsand10months

Petitionmay be filed by any LLO, but the petitionmust have thewritten support of at least 25% oftheemployeesinthebargainingunit

o Unorganizedestablishment Where no union has yet been duly recognized or

certifiedasbargainingrepresentative


Employermayvoluntarilyrecognizethebargainingagent

If voluntary recognition not possible,petition to hold an electionmay be filedanytime by any LLO, except within 12months from a previous CE, run‐off, orconsentelection

o Rarely,anemployermayalsofileapetitionforCE• Election is conducted under the supervision and control of DOLE

officials. It ends up with a formal and official statements of results,certifyingwhichunionwon,ifany.

• Whereonecastingofvotesisnotenoughtoelectaunion,theelectionofficialsmayrequirearun‐offelectionifcertainconditionsexist

• Notethatcertificationelection,run‐offelectionorconsentelectionisneeded only when two or more unions are vying for exclusivebargainingrepresentative(EBR)

• Wherethereisbutoneunionandthereisampleproofthatthatunioncarries the majority of the employees, law allows employer tovoluntarilyrecognizesuchunion

2. Firstmethod:voluntaryrecognition(VR)• Threeconditions–

o Possibleonlyinanunorganizedestablishment In an organized setting, the employer cannot

voluntarily recognize any new union because thelaw requires him to continue recognizing anddealingwiththeincumbentunionaslongasithasnotbeenproperlyreplacedbyanotherunion

o Onlyoneunionisaskingforrecognition Iftwoormore,theremustbeanelection

o Union voluntarily recognized should be themajority unionasindicatedbythefactthatmembersofthebargainingunitdidnotobjecttotheprojectedrecognition

If there is an objection raised, the recognition isbarred, and a certification election or consentelectionwillhavetotakeplace

• VRunderDO4003o Within 30 days from such recognition, the employer and

unionshallsubmitanoticeofvoluntaryrecognitionwiththeRegional Office which issued the recognized labor union'scertificate of registration or certificate of creation of acharteredlocal.

o Thenoticeofvoluntaryrecognitionshallbeaccompaniedbythe original copy and two (2) duplicate copies of thefollowingdocuments–

A joint statement under oath of voluntaryrecognition attesting to the fact of voluntaryrecognition;

Certificate of posting of the joint statement ofvoluntaryrecognitionfor15consecutivedaysinatleast two (2) conspicuous places in the

establishment or bargaining unitwhere the unionseekstooperate;

The approximate number of employees in thebargaining unit, accompanied by the names ofthose who support the voluntary recognitioncomprising at least a majority of the members ofthebargainingunit;and

A statement that the labor union is the onlylegitimate labor organization operatingwithin thebargainingunit.

o All accompanying documents of the notice for voluntaryrecognition shall be certified under oath by the employerrepresentativeandpresidentoftherecognizedlaborunion.

o Where the notice of voluntary recognition is sufficient inform, number and substance and where there is no otherregistered laborunionoperatingwithin thebargainingunitconcerned, theRegionalOffice, throughtheLaborRelationsDivision shall, within 10 days from receipt of the notice,record the fact of voluntary recognition in its roster oflegitimate labor unions and notify the labor unionconcerned.

o Where the notice of voluntary recognition is insufficient inform, number and substance, the Regional Office shall,withinthesameperiod,notifythelaborunionofitsfindingsandadviseittocomplywiththenecessaryrequirements.

o Where neither the employer nor the labor union failed tocompletetherequirementsforvoluntaryrecognitionwithinthe30daysfromreceiptoftheadvisory,theRegionalOfficeshall return the notice for voluntary recognition togetherwithallitsaccompanyingdocumentswithoutprejudicetoitsresubmission.

o From the time of recording of voluntary recognition, therecognizedlaborunionshallenjoytherights,privilegesandobligations of an existing bargaining agent of all theemployeesinthebargainingunit.

o Entry of voluntary recognition shall bar the filing of apetition for certification election by any labor organizationfor a period of 1 year from the date of entry of voluntaryrecognition. Upon expiration of this one‐year period, anylegitimate labor organization may file a petition forcertification election in the same bargaining unitrepresented by the voluntarily recognized union, unless acollectivebargaining agreementbetween the employer andvoluntarily recognized labor union was executed andregisteredwiththeRegionalOffice.

3. Secondmethod:certificationelection(CE)• CE should be given every encouragement under the law so that the

will of the workers may be discovered and, through their freelychosenrepresentatives,pursuedandrealized


• Process is called CE because it serves as the official, reliable anddemocratic basis for the Bureau to determine and certify the unionthat shall be the exclusive representative of the employees (in thebargainingunit)forthepurposeofbargainingwiththeemployer

• As defined in the IRR, certification election means the process ofdetermining through secret ballot the sole and exclusiverepresentativeoftheemployeesinanappropriatebargainingunit,forpurposesofcollectivebargainingornegotiation

• Factfindingo In labor legislation, certification proceedings is not a

litigation, but an investigation of non‐adversary and fact‐findingcharacter.Hence,itisnotboundbytechnicalrulesofevidence

o ThelawdoesnotcontemplatetheholdingofaCEunlessthepreliminaryinquiryshowsareasonabledoubtastowhichofthe contending unions represents a majority (evidence isadducedbyrivalunions)

o Involveonly2issues– Proper composition and constituency of the

bargainingunit Veracity of majority membership claims of the

competing unions so as to identify the one unionthatwill serve as thebargaining representativeoftheentirebargainingunit

o “NoUnion”isalsooneofthechoicesnamedintheballot. If this wins, the company or the bargaining unit

remains unionized for at least 12 months, theperiod known as the 12‐month bar. After thatperiod,apetitionforaCEmaybefiledagain.

• Certificationelectiondifferentiatedfromunionelection

UnionElection CertificationElectionHeld pursuant to the union’s constitutionandbylaws

ProcessorderedandsupervisedbyDOLE

Objectistoelectofficersoftheunion Object is to determine, through secretballot, whether or not a majority of theemployees wish to be represented by alabor organization and, in the affirmativecase, by which particular labororganization

Right to vote enjoyed only by unionmembers

All employees whether union member ornot, who belong to the appropriatebargaining unit can vote. Reverse is notalways true, unless otherwise authorizedbyunionconstitutionandbylaws

Winners become officers andrepresentativesoftheuniononly

Winner is an entity, a union, whichbecomes the representative of the wholebargaining unit that includes even themembersofthedefeatedunions

o Both in CE and union elections, prescribed proceduresshouldbefollowed

• Directcertificationnolongerallowedo EveninacasewhereaunionhasfiledapetitionforCE,the

mere fact that therewasnooppositiondoesnotwarrant adirectcertification

o Holding of a CE is not necessarily a mere formality wherethere is a compelling legal reason not to directly andunilaterallycertifyaunionwhoselegitimacyispreciselytheobjectoflitigation

• WhofilespetitionforCE(PCE)o Maybefiledby–

Aregisteredunion Employer

Whenrequestedtobargaincollectivelyina bargaining unit where no registeredCBAexists

Usually, employer lets the unionsinterpleadtodeterminewhoamongthemwillbargain

Any LLO, including a national union or federationthat has issued a charter certificate to itslocal/chapterorthelocal/chapteritself

National union or federation filing inbehalf of local/chapter shall not berequired to disclose the names of thelocal/chapter’sofficers andmembersbutshall attach to the petition the chartercertificateitissuedtoitslocal/chapter

o Inallcases,employershallnotbeconsideredapartytheretowith a right to oppose a petition for certification election.Employer’sparticipationislimitedto–

Being notified or informed of petitions of suchnature

Submitting the list of employees during pre‐election conference should the Med‐Arbiter actfavorablyonthepetition

o Anemployeehastherighttointervenefortheprotectionofhisindividualright

o Inanunorganizedestablishment,onceapetitionisfiledbyaLLO,theMed‐arbitershallautomaticallyorderaCE

o OrderofMed‐Arbiterisnotappealable• Intervention

o OtherunionswhichareinterestedinjoiningaCEmayfileamotionforintervention

o Inanorganizedestablishment,thefilerwillmostlikelybeaunionthatwasdefeatedintheCEsomefiveyearsbefore.Insuchcase,theincumbentunionisanecessarypart,aforcedintervenor. But it does not lose its representative status. It


remains the sole bargaining representative until it isreplacedbyanother

o Whetherpetitionerorintervenor,theunionhastobeanLLO If petition was filed by the federation which is

merelyanagent, thepetitionisdeemedtobefiledbythechapter,theprincipal,whichmustbeaLLO.Itcannotrelyonthelegitimatestatusofthemotherunion

• WheretofilethePCEo WiththeRegionalOfficewhichissuedthepetitioningunion’s

certificate of registration or certificate of creation ofchartered local.Petition shallbeheardand resolvedby theMed‐Arbiter

o When2ormorepetitionsinvolvingsamebargainingunitarefiled in one Regional Office automatically consolidatedwiththeMed‐Arbiterwhofirstacquiredjurisdiction

o 2 or more petitions filed in different Regional Offices, theOffice inwhich the petitionwas first filed shall exclude allothers;inwhichcase,thelattershallindorsethepetitiontotheformerforconsolidation

• WhentofilethePCEo NoCBAanytimeoutsidethe12‐monthbaro HasaCBAfiledonlywithinthelast60daysofthe5thyear

oftheCBAo The IRR states: A petition for CE may be filed anytime,

EXCEPT– When a fact of voluntary recognition has been

entered or a valid certification, consent or run‐offelectionhasbeenconductedwithinthebargainingunit within one (1) year prior to the filing of thepetition forcertificationelection.Whereanappealhas been filed from the order of the Med‐Arbitercertifyingtheresultsoftheelection,therunningofthe one year period shall be suspended until thedecision on the appeal has become final andexecutory;

Whenthedulycertifiedunionhascommencedandsustained negotiations in good faith with theemployer in accordance with Article 250 of theLaborCodewithintheoneyearperiodreferredtointheimmediatelyprecedingparagraph;

When a bargaining deadlock to which anincumbent or certified bargaining agent is a partyhadbeensubmittedtoconciliationorarbitrationorhadbecomethesubjectofavalidnoticeofstrikeorlockout;

When a collective bargaining agreement betweenthe employer and a duly recognized or certifiedbargainingagenthasbeenregisteredinaccordancewith Article 231 of the Labor Code. Where such

collective bargaining agreement is registered, thepetition may be filed only within sixty (60) dayspriortoitsexpiry.

• Formandcontentsofpetitiono The petition shall be inwriting, verified under oath by the

presidentofpetitioninglabororganization.o Where a federation or national union files a petition in

behalf of its local or affiliate, the petition shall be verifiedunder oath by the president or duly authorizedrepresentative of the federation or national union with acertification under oath as to the existence of itslocal/chapterintheestablishmentandattachingtheretothechartercertificateoracertifiedtruecopy.

o If the petition is filed by a local/chapter it shall attach itscharactercertificateoracertifiedtruecopy.

o In case the employer filed, the owner, president or anycorporate officer, who is authorized by the board ofdirectorsshallverifythepetition.

o The petition should also state any of the followingcircumstances–

That the bargaining unit is unorganized or thatthere is no registered collective bargainingagreement covering the employees in thebargainingunit;

If there exists a duly registered collectivebargaining agreement, that the petition is filedwithin the sixty‐day freedom period of suchagreement;or

If another union had been previously recognizedvoluntarily or certified in a valid certification,consentorrun‐offelection,thatthepetitionisfiledoutside the one‐year period from entry ofvoluntaryrecognitionorconductofcertificationorrun‐offelectionandnoappealispendingthereon.

o In anorganizedestablishment, signatureof at least25%ofall employees in the appropriate bargaining unit shall beattachedtothepetitionatthetimeofitsfiling

• Actiononthepetition:preliminaryconference(precon)o Pre‐con ismeant to determinewhether the PCE should be

processed further or be dismissed. It is the means also todetermine the bargaining unit that will participate in theelection, the identity of the contending unions, and thepossibility of holding a consent election instead of acertificationelection.

o If at the pre‐con, unions agree to hold a consent election,then the PCE will no longer be heard and the unions willinsteadpreparefortheconsentelections.

o Iftheunionsfailtoagreetoholdaconsentelection,themed‐arbiterproceedstoconsiderthepetition


o Denial or grant of the petition is always appealable to thesecretaryoftheDOLE.

Never appealable is the approval of a PCE in anunorganizedbargainingunit

o Afterraffle,petitionshallimmediatelybetransmittedtotheassigned Mediator‐Arbiter who shall prepare and serve anoticeofpre‐contobeheldwithin10workingdaysfromthemed‐arbiter’sreceiptofthepetition

o Service of the petition to employer and of the notice ofpreliminaryconferencetothepetitionerandtheincumbentbargainingagent,ifany,shallbemadewithin3workingdaysfromthemed‐arbiter’sreceiptofthepetition

o Copy of the petition and of the notice of pre‐con shall beposted within the same 3 day period in at least 2conspicuousplacesintheestablishment(ifmultiple‐locationworkplace, posting shall bemade in at least 2 conspicuousplacesineverylocation)

• Actiononthepetition;hearingsandpleadingso If the unions fail to agree to a consent election during the

pre‐con, themed‐arbitermay conduct asmanyhearings ashemaydeemnecessary

Conduct of the hearings cannot exceed 15 daysfromthedateofthescheduledpre‐con/hearing

After that time, the petition shall be consideredsubmittedfordecision

Extensionoftimeshallnotbeentertainedo Med‐arbiter shall have control of the proceedings and

postponementsorcontinuancesarediscouragedo Failure of any party to appear in the hearing(s) when

notifiedor to file itspleadings shallbedeemedawaiverofitsrighttobeheard

o Med‐arbitermayallowcancellationofscheduledhearing(s)uponagreementofthepartiesformeritoriousreasons

Cancellation shall not be used as a basis forextending the 15 day period within which toterminatethesame

o Within10daysfromdateofthelasthearing,themed‐arbitershallissueaformalorderdenyingorgrantingthepetition.

In organized establishments, order or decisiongranting the petition can only be issued after thelapseofthefreedomperiod

• Actiononthepetition:denial;eightgroundso Non‐appearance

Non‐appearance of petitioner for 2 consecutivescheduled conferences before the med‐arbiterdespitenotice

This ground is controversial because it legalizes aracket because there are fly‐by‐night “unionorganizers”whofilepetitionsforCE,thenapproachthe target enterprise with a proposition that, in

exchange for “something” theywillnotpursue thepetition for CE so that the company may remainunionized

o Illegitimacy–unregisteredunion Petitioner is not listed in the DOLE’s registry of

legitimate labor unions or that its registrationcertificate

EveniftheunionislistedasLLO,itslegitimacymaystill be questioned in a separate and independentpetitionforcancellationtobeheardanddecidedbytheBLRDirectorortheRegionalDirectorhimself

Mere filing of a petition to cancel the petitioner’sregistration does not cause the suspension ordismissal of the PCE. To serve as a ground fordismissal of a PCE, the legal personality of thepetitioner should have been revoked or cancelledwithfinality

Suspension of proceedings: “company union”charge”

Before: formal charge of companydomination or company unionism is aprejudicial question that, until decided,bars proceedings for a certificationelection,thereasonbeingthatthevotesofthe members of the dominated unionwouldnotbefree

Now:DO40‐03doesnotfavorprejudicialquestions that block certificationproceedings. Neither may a certificationelection be stayed during pendency ofULP charge against a union filed by theemployer.EvenappealtotheSCfromtheorder denying the motion forreconsideration does not suspend theeffectofaCE.

o Illegitimacy–nocharter Failure of local/chapter or national

union/federation to submit a duly issued chartercertificateuponfilingofthepetitionforCE

o Absenceofemploymentrelationship Absence of employer‐employee relationship

betweenallmembersof thepetitioningunionandthe establishmentwhere the proposed bargainingunitissoughttoberepresented

Employer, notified about the petition,may invokeand prove the absence of employer‐employeerelationship.(Contentionmayberaisedonappeal)

o Electionbar–the12‐monthbar Filing of a petitionwithin 1 year from the date of

recording of the voluntary recognition, or within


thesameperiod fromavalidcertification,consentor run‐off electionwherenoappealon the resultsof the certification, consent or run‐off election ispending

Thus,ifanelectionhadbeenheldbutnotoneoftheunionsown,aPCEmaybefiledagainbutonlyafter12months.

If a union haswon, such union and the employermustwithin12monthsstartnegotiatingaCBA.

But if circumstances show that the cause of nothaving concludedaCBAwasnot theunion’s fault,suchunionshouldnotbeblamed,andaCEshouldnot be authorized even though no CBA has beenconcluded despite passage of 12 months deadlockbar

WheretherewasnoCEpreciselybecausethe firstpetition was dismissed, the certification year bardoes not apply. Nor does it apply if there was afailureofelection.

A radical change in the size of a bargaining unitwithinashortperiodoftime,raisingaquestionasto the majority status of the certifiedrepresentative, may also prompt the NLRB toentertain a petition for an election during thecertificationyear.

Samahang Manggagawa sa Permex v. Secretary ofLabor

“No Union” choice won in the CE. Butwithin 12months from that election, theemployer recognized a new union andthenconcludedwithitaCBA.

There can be no determination of abargainingrepresentativewithinayearofthe proclamation of the results of the CE.There is somethingdubiousabout the factthat just 10 months after the employeeshadvotedthattheydidnotwantanyunionto represent them, they would beexpressing support for petitioner. Thecourt strongly doubted that the unionvoluntarily recognized was really theemployee’schoice.

o Electionbar–negotiationordeadlock Where a duly certified union has commenced and

sustainednegotiationswiththeemployerorwherethereexistsabargainingdeadlockwhichhasbeensubmitted to conciliation or arbitration or hasbecome the subject of a valid notice of strike orlockoutwhereanincumbentorcertifiedbargainingagentisaparty

The Deadlock Bar rule simply provides that apetitionforCEcanonlybeentertainedifthereisnopending bargaining deadlock submitted toconciliation or arbitration or had become thesubjectofavalidnoticeofstrikeorlockout.

CapitolMedicalCenterAlliancev.Laguesma If the law proscribes the conduct of a CE

when there is a bargaining deadlocksubmitted to conciliation or arbitration,with more reason should it not beconducted if, despite attempts to bring anemployer to the negotiation table by thecertified bargaining agent, there was noreasonableeffort ingoodfaithonthepartoftheemployertobargaincollectively.

Deadlock bar rule not applicable in an artificialdeadlock – deadlock prearranged or preserved bycollusionoftheemployerandthemajorityunion

KAMPILKATIPUNANv.Trajano KAMPIL‐KatipunanfiledCE,claimingthat

NAFLU, the existing exclusive bargainingagent failed to come up with a CBA.NAFLUclaimsthatatthetimetheCEwasfiled,itwasinabargainingdeadlockwithemployerVIRON.

The recordsdonot show that therewasabargaining deadlock prior to the filing ofthe petition for CE. The strikes andsubmission to compulsory arbitrationalleged by NAFLU took place after thefilingofthePCE.Forabargainingdeadlockto bar a PCE, such deadlock must havebeen submitted to conciliation orarbitration,ormusthavebeen the subjectofavalid strikeor lockoutnoticebefore–notafter–thefilingofthePCE.

o Electionbar–existingCBA Filing the petition before or after the freedom

periodofadutyregisteredCBA;providedthat the60‐dayperiodbasedon theoriginalCBAshallnotbe affected by any amendment, extension orrenewaloftheCBA

The PCEmay be filedwithin this 60‐day period –not before, not after – otherwise the PCEmay bedismissed

Thefreedomperiodisthelast60daysoftheCBA’sfifthyearoftherepresentationalaspect.

TobaraCE it isno longernecessary that theCBAbecertified;itisenoughthatitisregistered

Contract‐barruleapplied:


Extended CBA under deadlock – no PCEmay be filed before the onset of thefreedomperiodnoraftersuchperiod.Theold CBA is extended until a new one issigned.

National Congress of Unions in the SugarIndustry v. Ferrer Calleja – Despite thelapse of the formal effectivity of the CBA,the law still considers the same ascontinuing in full force and effect until anewoneisexecuted.Thus,thecontractbarrulestillapplies.

Even if the existing CBA is registeredsurreptitiously, as alleged by thepetitioner union, but no evidence ispresented proving the allegedsurreptitious registration, the PCE can’tbegranted

Contract‐barrulenotapplied: Defective CBA (ALU v. FerrerCalleja: To

beabartoacertificationelection,theCBAmust be adequate in that it comprisessubstantial terms and conditions ofemployment)

Referendum to register on independentunion

CBA signed before or within freedomperioddespiteinjunctiveorder

ACBAmayberenegotiatedbefore,during,orafterthe 60‐day freedom period. But if during suchperiodaPCEisfiled,theMed‐Arbitercanorderthesuspension of the renegotiation until therepresentationproceedingsfinallyend

Effecton the renegotiatedCBA if aunionotherthantheonethatexecuteditshouldwin the CE – union thus certified wouldhave to respect the contract, but that itmay bargain with the management toshorten the lifeof thecontract if it is toolong

When a CBA is entered into at the timewhenthePCEhadalreadybeenfiledbyaunionandwasthependingresolution,thesaidCBAcan’tbedeemedpermanent.

o Electionbar–lackofsupport Inanorganizedestablishment,thefailuretosubmit

the 25% signature requirement to support thefilingofthepetitionforCE

In a case, the company’s rank‐and‐file employeesare unionized but the supervisors are not. Insofar

as the supervisors are concerned, the“establishment” is considered unionized. In otherwords, in deciding whether 25% requirement isapplicable or not, the law considers the CBUinvolved,notthewholeenterprise.

Compliancewiththe25%requirementneednotbeestablished with absolute certainty. TherequirementthenisrelevantonlywhenitbecomesmandatorytoconductaCE.

Effect of withdrawal of signatures depends onwhethertheithappenedbeforeorafterthefilingofthepetition.

Before–presumedvoluntaryand itdoesaffecttheproprietyofthepetition

After – deemed involuntary (perhapspressured by the employer) and it doesnotnecessarilycausethedismissalofthepetition

LaSuerteCigarv.Director The distinction must be that withdrawals

made before the filing of the petition arepresumed voluntary unless there isconvincing proof to the contrary,whereaswithdrawals made after the filing of thepetition are deemed involuntary. Thereason for such distinction is that if thewithdrawal or retraction is made beforethe filing of the petition, the names ofemployees supporting the petition aresupposed to beheld secret to the oppositeparty.

• Prohibitedgroundsforthedenial/suspensionofthepetitiono Commingling

Inclusion asunionmembersof employeesoutsidethe bargaining unit shall not be a ground for thecancellation of the registration of the union. Saidemployees are automatically deemed removedfromthelistofmembershipofsaidunions

o Validityofregistration Issuespertainingtovalidityofunion’scertificateof

registration or legal personality, validity ofregistration and execution of CBA shall be heardand resolved by the Regional Director in anindependent petition for cancellation of itsregistrationandnotbytheMed‐ArbiterinthePCE,unless the petitioning union is not listed in theDepartment’s roster of LLO, or an existing CBA isnotregisteredwiththeDepartment

o Authority to decide existence of employer‐employeerelationship;med‐arbiter’sorderappealabletosecretary


All issuespertaining to theexistenceofemployer‐employee relationship or to eligibility to unionmembership shall be resolved in the order ordecision granting or denying the PCE. In otherwords, those issues do not stall the PCE and theyarenotgroundsfordismissingaPCE

As the authority to determine the employer‐employee relationship is necessary andindispensable intheexerciseof jurisdictionbytheMed‐Arbiter, his finding thereon may only bereviewedandreversedbytheSecretaryofLabor.

Similarly, incidental to the power of the med‐arbiter to hear and decide cases is the power todetermineeligibilityofvoters.

• Employerabystander;cannotopposePCEo SC,nevertheless,hasallowedanemployertoprotestagainst

irregularitiescommittedintheconductofaCE.• Actiononthepetition;approval

o If there exists no ground to dismiss or otherwise deny thePCE,themed‐arbiterhastograntit

o RulingfortheconductofCEshallstatethefollowing: Thenameoftheemployerorestablishment; Thedescriptionofthebargainingunit; Astatementthatnoneofthegroundsfordismissal

enumeratedinthesucceedingparagraphexists; Thenamesofcontending laborunionswhichshall

appear as follows: petitioner union/s in the orderin which their petitions were filed, forcedintervenor,andnounion;

To afford an individual employee‐voter aninformedchoicewherealocal/chapterisoneofthecontending unions, a directive to an unregisteredlocal/chapter or a federation/national unionrepresenting an unregistered local/chapter topersonally submit to the election officer itscertification of creation at least 5 working daysbefore the actual conduct of the CE. Non‐submissionof this requirement as certifiedby theelection officer shall disqualify the local/chapterfromparticipatingintheCE

Adirectiveupontheemployerandthecontendingunion(s) to submit within ten (10) days fromreceiptof theorder, thecertified listofemployeesin the bargaining unit, or where necessary, thepayrolls covering the members of the bargainingunit for the last three (3) months prior to theissuanceoftheorder.

• Appealofordergrantingordenyingpetitiono 2occasionsofappealtotheofficeoftheDOLEsecretary

Afterthemed‐arbiterdecidesthepetitionforCE

After the CE, when the med‐arbiter certifies theelectionresults

o Only order that can’t be appealed is an order granting theconductofaCEinanunorganizedestablishment.AnyissuearisingtherefrommayberaisedbymeansofprotestontheconductandresultsoftheCE

o In organized establishment, appeal to the Office of theSecretarywithin10daysfromreceiptthereof

o Memorandumofappeal shallbe filed in theRegionalOfficewherethepetitionoriginated.

o Within 24 hours from receipt of the appeal, the RegionalDirectorshallcausethetransmittalthereoftogetherwiththeentirerecordsofthecasetotheOfficeoftheSecretary

o Replytotheappealmaybefiledbyanypartywithin10daysfrom receipt of thememorandum of appeal. Reply shall befileddirectlywiththeOfficeoftheSecretary

o Secretaryhas15days from receipt of the entire recordsofthepetitionwithinwhichtodecidetheappeal

o Decision of the secretary shall become final and executoryafter10daysfromreceiptthereofbytheparties.NoMRshallbeentertained.

• ConductingtheCE–preelectionconferenceo Section 1. Raffle of the case. ‐ Within twenty‐four (24)

hours from receipt of the notice of entry of final judgmentgrantingtheconductofacertificationelection,theRegionalDirector shall cause the raffle of the case to an ElectionOfficerwhoshallhavecontrolofthepre‐electionconferenceandelection

o proceedings.o Section 2. Preelection conference. ‐ Within twenty‐four

(24)hoursfromreceiptoftheassignmentfortheconductofa certification election, the Election Officer shall cause theissuance of notice of preelection conference upon thecontending unions and the employer, which shall bescheduled within ten (10) days from receipt of theassignment. The pre‐election conference shall set themechanics for the election and shall determine, amongothers,thefollowing:

Date,timeandplaceoftheelection,whichshallnotbe later than forty‐five (45)days from thedateofthe firstpre‐electionconference,andshallbeonaregular working day and within the employer'spremises,unlesscircumstancesrequireotherwise;

Listofeligibleandchallengedvoters; Number and location of polling places or booths

and the number of ballots to be prepared withappropriatetranslations,ifnecessary;

Name of watchers or representatives and theiralternatesforeachofthepartiesduringelection;

Mechanicsandguidelinesoftheelection.


o Section 3. Waiver of right to be heard. ‐ Failure of anyparty to appear during the pre‐election conference despitenoticeshallbeconsideredasawaiver tobepresentand toquestionorobjecttoanyoftheagreementsreachedinsaidpre‐election conference. Nothing herein, however, shalldeprivethenon‐appearingpartyortheemployerofitsrightto be furnished notices of subsequent pre‐electionconferencesandtoattendthesame.

o Section 4. Minutes of preelection conference. ‐ TheElectionOfficershallkeeptheminutesofmattersraisedandagreeduponduringthepre‐electionconference.Thepartiesshall acknowledge the completeness and correctnessof theentries in theminutes by affixing their signatures thereon.Where any of the parties refuse to sign the minutes, theElectionOfficershallnotesuchfactintheminutes,includingthe reason for refusal to sign the same. In all cases, theparties shall be furnished a copy of the minutes. The pre‐election conference shall be completed within thirty (30)daysfromthedateofthefirsthearing.

o Section 5. Qualification of voters; inclusionexclusion. ‐All employees who are members of the appropriatebargainingunitsoughttoberepresentedbythepetitioneratthetimeoftheissuanceoftheordergrantingtheconductofacertificationelectionshallbeeligibletovote.Anemployeewho has been dismissed from work but has contested thelegality of the dismissal in a forum of appropriatejurisdiction at the time of the issuance of the order for theconduct of a certification election shall be considered aqualifiedvoter, unlesshis/herdismissalwasdeclaredvalidin a final judgment at the time of the conduct of thecertification election. In case of disagreement over thevoters' list or over the eligibility of voters, all contestedvoters shall be allowed to vote. But their votes shall besegregatedandsealedinindividualenvelopesinaccordancewithSections10and11ofthisRule.

o Section 6. Posting of Notices. ‐ The Election Officer shallcausethepostingofnoticeofelectionatleastten(10)daysbefore the actual date of the election in two (2) mostconspicuous places in the company premises. The noticeshallcontain:

Thedateandtimeoftheelection; Namesofallcontendingunions; Thedescriptionof thebargainingunit and the list

ofeligibleandchallengedvoters.o The posting of the notice of election, the information

requiredtobe includedthereinandthedurationofpostingcannotbewaivedbythecontendingunionsortheemployer.

• ConductingtheCE:thevoterso All employees who are members of the appropriate

bargainingunitsoughttoberepresentedbythepetitionerat

thetimeoftheissuanceoftheordergrantingtheconductofaCEshallbeeligibletovote.

o Listofvotersbasedonemployer‐certified listofemployeesintheCBUorpayrolls.Ifemployerdoesnotsubmitalist,theunion may submit its own list. Even the list of employeessubmittedtotheSSSmaybeused.

o In case of disagreement over the voters’ list or over theeligibilityof voters, all contestedvoters shall be allowed tovote. But their votes shall be segregated and sealed inindividualemployees

o Employee who has been dismissed from work but hascontested the legality of the dismissal in a forum ofappropriate jurisdiction at the time of the issuance of theorderfortheconductofaCEshallbeconsideredaqualifiedvoter,unlesshis/herdismissalwasdeclaredvalid ina finaljudgmentatthetimeoftheconductoftheCE.

o All rank‐and‐file employees, probationary or permanent,haveasubstantialinterestsintheselectionofthebargainingrepresentative. The Code makes no distinction as to theiremployment status as basis for eligibility in supporting thePCE.

o IglesiaNiKristomembersmayvote–IntheCEallmembersoftheunit,whetherunionmembersornot,havetherighttovote.

Reeysv.Trajano Right not to join, affiliate with, or assist

anyunion,andtodisaffiliateorresignfroma labor organization, is subsumed in theright to join, affiliate with, or assist anyunion, and to maintain membershiptherein.

• ConductingtheCE:thevotingo Voting shall open on the date and time agreedupon in the

pre‐electionconferenceo Section 7. Secrecy and sanctity of the ballot. ‐ To ensure

secrecyof theballot, theElectionOfficer, togetherwith theauthorizedrepresentativesofthecontendingunionsandtheemployer,shallbeforethestartoftheactualvoting, inspectthepollingplace,theballotboxesandthepollingbooths.

o Section8.Preparationofballots. ‐TheElectionOfficershallprepare the ballots in English and Filipino or the localdialect, corresponding to the number of voters and areasonable number of extra ballots. All ballots shall besigned at the back by the Election Officer and authorizedrepresentative of each of the contending unions andemployer. Failure or refusal to sign the ballots shall beconsidered a waiver thereof and the Election Officer shallenterthefactofsuchrefusalorfailureintherecordsofthecaseaswellasthereasonfortherefusalorfailuretosign.


o Section9.Markingofvotes. ‐Thevotermustputacrossorcheckmarkinthesquareoppositethenameoftheunionofhis choice or "No Union" if he/she does not want to berepresentedbyanyunion. Ifaballot is torn,defacedor leftunfilledinsuchamannerastocreatedoubtorconfusionorto identify the voter, it shall be considered spoiled. If thevoter inadvertently spoils aballot, he/she shall return it tothe Election Officer who shall destroy it and give him/heranotherballot.

o Section 11. Procedure in the challenge of votes. ‐ When avote is properly challenged, the ElectionOfficer shall placethe ballot in an envelope which shall be sealed in thepresence of the voter and the representatives of thecontendingunions and employer. TheElectionOfficer shallindicate on the envelope the voter's name, the union oremployer challenging the voter, and the ground for thechallenge. The sealed envelope shall then be signed by theElection Officer and the representatives of the contendingunions and employer. The Election Officer shall note allchallenges in the minutes of the election and shall beresponsible for consolidating all envelopes containing thechallenged votes. The envelopes shall be opened and thequestion of eligibility shall be passed upon only if thenumberofsegregatedvoterswillmateriallyaltertheresultsoftheelection.

o Section12.On‐the‐spotquestions.‐TheElectionOfficershallrule on any question relating to and raised during theconduct of the election. In no case, however, shall theelection officer rule on any of the grounds for challengespecifiedintheimmediatelyprecedingsection.

o Section13. Protest;whenperfected. ‐Anyparty‐in‐interestmayfileaprotestbasedontheconductormechanicsoftheelection. Such protests shall be recorded in theminutes oftheelectionproceedings.Protestsnotsoraisedaredeemedwaived.Theprotestingpartymustformalizeitsprotestwiththe Med‐Arbiter, with specific grounds, arguments andevidence,within five(5)daysafter thecloseof theelectionproceedings.Ifnotrecorded

o ULPinrelationtoelection Employerdeserves condemnation for ignoring the

employees’ request for permission for some timeouttoattendtothehearingoftheirpetitionbeforethemed‐arbiter

It isULP for thecompany to suspend theworkerson the ground of “abandonment of work” on thedayonwhichthepre‐electionconferencehadbeenscheduled

• ConductingtheCE:canvassingofvotes

o Voting shall close on thedate and time agreedupon in thepre‐election conference. Canvassing shall immediatelyfollow.

o The votes shall be counted and tabulated by the ElectionOfficer in the presence of the representatives of thecontending unions. Upon completion of the canvass, theElectionOfficershallgiveeachrepresentativeacopyof theminutes of the election proceedings and results of theelection.Theballotsandthetallysheetsshallbesealedinanenvelope and signed by the Election Officer and therepresentativesofthecontendingunionsandtransmittedtotheMed‐Arbiter,togetherwiththeminutesandresultsoftheelection,withintwenty‐four(24)hoursfromthecompletionofthecanvass.Wheretheelectionisconductedinmorethanone region, consolidation of results shall be made withinfifteen(15)daysfromtheconductthereof.

o Failure of the representative/s of the contending unions toappearduringtheelectionproceedingsandcanvassofvotesshallbeconsideredawaiveroftherighttobepresentandtoquestiontheconductthereof

• WhowinsintheCE;proclamationandcertificationo In order to have a valid election, at least a majority of all

eligiblevotersintheunitmusthavecasttheirvoteso Within twenty‐four (24) hours from final canvass of votes,

there being a valid election, the Election Officer shalltransmit the records of the case to the Med‐Arbiter whoshall,withinthesameperiodfromreceiptoftheminutesandresultsofelection, issueanorderproclaimingtheresultsofthe election and certifying the union which obtained amajority of the valid votes cast as the sole and exclusivebargainingagentinthesubjectbargainingunit,underanyofthefollowingconditions:

No protestwas filed or, even if onewas filed, thesamewasnotperfectedwithinthefive‐dayperiodforperfectionoftheprotest;

Nochallengeoreligibilityissuewasraisedor,evenif one was raised, the resolution of the same willnotmateriallychangetheresultsoftheelections.

o The winning union shall have the rights, privileges andobligations of a duly certified collective bargaining agentfrom the time the certification is issued.Wheremajority ofthe valid votes cast results in "No Union" obtaining themajority,theMed‐Arbitershalldeclaresuchfactintheorder.

o Unionwhichobtainedamajorityofthevalidvotescastshallbecertifiedasthesoleandexclusivebargainingagentofallthe employees in the appropriate bargaining unit within 5days from the day of the election, provided no protest isrecordedintheminutesoftheelection

• Failureofelection;motionforaremedialelection


o Section17.Failureofelection.‐Wherethenumberofvotescast in a certification or consent election is less than themajority of the number of eligible voters and there are nomaterialchallengedvotes,theElectionOfficershalldeclareafailureofelectionintheminutesoftheelectionproceedings.

o Section18.Effectoffailureofelection.‐Afailureofelectionshallnotbarthefilingofamotionfortheimmediateholdingof another certification or consent election within six (6)monthsfromdateofdeclarationoffailureofelection.

o Section19.Actiononthemotion.‐Withintwenty‐four(24)hours from receipt of themotion, the ElectionOfficer shallimmediatelyscheduletheconductofanothercertificationorconsentelectionwithinfifteen(15)daysfromreceiptofthemotion and cause the posting of the notice of certificationelectionatleastten(10)dayspriortothescheduleddateofelection in two (2) most conspicuous places in theestablishment.Thesameguidelinesandlistofvotersshallbeusedintheelection.

• Runoffelectiono When an election which provides for three (3) or more

choicesresultsinnoneofthecontendingunionsreceivingamajorityof thevalidvotescast,andtherearenoobjectionsor challenges which if sustained can materially alter theresults,theElectionOfficershallmotupropioconductarun‐off election within ten (10) days from the close of theelectionproceedingsbetweenthelaborunionsreceivingthetwo highest number of votes; provided, that the totalnumber of votes for all contending unions is at least fifty(50%)percentofthenumberofvotescast."NoUnion"shallnotbeachoiceintherun‐offelection.

o Notice of run‐off elections shall be posted by the ElectionOfficeratleastfive(5)daysbeforetheactualdateofrun‐offelection.

o The samevoters' list used in the certification election shallbe used in the run‐off election. The ballots in the run‐offelection shall provide as choices the unions receiving thehighestandsecondhighestnumberofthevotescast.

o Tosummarize,arun‐offelectionisproperiffiveconcurrentconditionsexist–

AvalidelectiontookplacebecausemajorityoftheCBUmembersvoted

Electionpresentedatleastthreechoices Notoneoftheunionsobtainedthemajorityofthe

validvotes Totalnumberofvotes forall theunions isat least

50%ofthevotescast There is no unresolved challenge of voter or

electionprotest• Appealtosecretaryastoelectionresult(DONo.40E03)

o Decisions of the med‐arbiter may be appealed to theSecretary within 10 days from receipt by the parties of acopy thereof. Where no appeal is filed within the 10‐dayperiod,theorder/decisionshallbecomefinalandexecutoryand themed‐arbitershallenter this fact into therecordsofthecase.

o Memorandumofappeal shallbe filed in theRegionalOfficewhere petition originated, copy furnished the contendingunions and the employer. Within 24 hours from receipt,Regional Director shall transmit entire records to Office oftheSecretary

o A reply to the appeal may be filed by any party to thepetitionwithin10daysfromreceiptofthememorandumofappeal. Reply shall be filed directly with the Office of theSecretary.

o Secretary shall have 15 days from receipt of the entirerecords to decide. Decision of secretary shall be final andexecutoryafter10daysfromreceiptbytheparties.NoMRofthedecisionshallbeentertained.

o Within 48 hours from notice of receipt of decision by thepartiesandfinalityofthedecision,theentirerecordsofthecase shall be remanded to the Regional Office of origin forimplementation.

• Electionirregularities,protestbyemployero NationalFederationofLaborv.Secretary

What an employer is prohibited from doing is tointerferewiththeconductoftheCEforthepurposeof influencing its outcome. But certainly anemployerhasanabidinginterestinseeingtoitthattheelectionisclean,peaceful,orderlyandcredible

4. Thirdmethod:consentelection• Purposeofaconsentelectionistofindoutwhichunionshouldserve

asthebargainingagent.• DifferenceisthataCEisorderedbytheDepartmentwhileaconsent

electionisvoluntarilyagreeduponbytheparties,withorwithouttheinterventionoftheDepartment.

• Twoormoreunionsareinvolved• Maytakeplaceinanunorganizedororganizedestablishment• In hearing a PCE, the med‐arbiter may persuade the contending

unionstoagreetoaCE. If theunionsdoagree, themed‐arbitershallnot issueanordercalling for theconductof theelection. Instead,heshallenterintheminutesofthehearingorpreliminaryconferencethefactoftheagreementandthencausetheimmediateschedulingofthepre‐electionconference.

• The first pre‐election conference shall be scheduled within 10 daysfromthedateoftheconsentelectionagreement.

• Effectofconsentelectiono Where a PCE had been filed, and parties agreed to hold a

consentelection,resultsshallconstituteabartotheholdingofaCEfor1yearfromtheholdingofsuchconsentelection.


Where an appeal has been filed from the results of theconsentelection,therunningoftheone‐yearperiodshallbesuspendeduntilthedecisiononappealhasbecomefinalandexecutory.

o Where no PCE was filed but the parties agree to hold aconsentelectionwiththeintercessionoftheRegionalOffice,theresultsshallconstituteabartoanotherPCE

5. Winnerassoleandexclusiverepresentative• Employer must treat with the representative to the exclusion of all

otherclaimingbargainingagents• Exclusivebargainingagentrepresentseventheminorityunion

o Althoughtheunionhaseveryrighttorepresentitsmembersin the negotiation regarding the terms and conditions oftheir wishes on matters which are purely personal andindividualtothem

• Protection and capacity of the loser; the duty of fairrepresentation

o Majority union is obligated to serve the interest of allmembers of thewhole bargaining unit without hostility ordiscrimination

o Minorityunion,althoughaloserintheelection,doesnotloseitscharacterasalawfullabororganization

o FornegotiatingandadministeringaCBA,themajorityunionis therefore the sole and exclusive representative, but fornon‐CBA issues the minority union may act as a group ofemployeestopresentgrievancestotheemployer

o IftheminorityunionoritsmembersaretargetsofULPactsby the employer,with orwithout collusionwith amajorityunion, the minority union or its members, faced with themajorityunion’sdisregardof itsdutyoffairrepresentation,canfileanindividualorgroupcomplaintforULP.

• Isthebargainingunionamajorityunion?o Bargaining union does not always comprise the numerical

majorityinthebargainingunito Article 256 requires, for a union to win in a CE, only a

majority of the valid votes cast. The majority of the validvotesmay be lesser than themajority of the employees inthebargainingunit

• Maythebargainingagentrepresentretiredemployees?o In pursuing their claim for retirement benefits under the

CBA, the claimant retirees are represented by the union ofwhichtheywereformermembers.

labrel azucena summary part 1

Documents

cruxof labor relations

union rivalry

basic labor policy

union representation

certain rights

theprivate sector

workers organizationalrights

partiesare free