Labor Relations

Atty. Samson Alcantara

LABOR RELATIONS
Title I. POLICY AND DEFINITIONS
The public always considered in disputes between labor and capital because the rights of the general public are paramount Collective bargaining is the process of negotiation between an employer or employers and employees organization or union to reach an agreement on the terms and conditions of employment for a specified period o Includes the negotiation, administration, interpretation or application of the labor contract o Collective bargaining, together with law, constitutes the main source of regulation governing wages, hours of work and other terms and conditions of employment Arbitration is the submission for determination of disputed matter to private unofficial persons selected in the manner provided by law or agreement o Compulsory Arbitration occurs when the consent of one of the parties is enforced by statutory provisions o Voluntary Submission (or reference) an agreement by which parties agree to submit their differences to the decision of a referee or arbitrator Conciliation and mediation involves the act of a third person who interferes between two contending parties with a view to reconcile them or persuade them to adjust or settle their dispute o

Chapter 1. POLICY
Art. 211. Declaration of Policy. A. It is the policy of the State: (a) To promote and emphasize the primacy of free collective bargaining and negotiations, including voluntary arbitration, mediation and conciliation, as modes of settling labor or industrial disputes; (b) To promote free trade unionism as an instrument for the enhancement of democracy and the promotion of social justice and development; (c) To foster the free and voluntary organization of a strong and united labor movement; (d) To promote the enlightenment of workers concerning their rights and obligations as union members and as employees; (e) To provide an adequate administrative machinery for the expeditious settlement of labor or industrial disputes; (f) To ensure a stable but dynamic and just industrial peace; and (g) To ensure the participation of workers in decision and policy-making processes affecting their rights, duties and welfare. B. To encourage a truly democratic method of regulating the relations between the employers and employees by means of agreements freely entered into through collective bargaining, no court, administrative agency or official shall have the power to set or fix wages, rates of pay, hours of work or other terms and conditions of employment, except as otherwise provided under this Code. Labor relations laws are concerned with the stabilization of relations of employer and employees and seek to forestall and adjust differences between them by the encouragement of collective bargaining and the settlement of labor disputes through conciliation, mediation and arbitration Every labor relations case involves three parties: o The employees organization o Management

Art. 212. Definition. (a) Commission means the National Labor Relations Commission or any of its divisions, as the case may be, as provided under this Code. (b) Bureau means Bureau of Labor Relations and/or the Labor Relations Division in the regional offices established under Presidential Decree No. 1, in the Department of Labor. (c) Board means the National Conciliation and Mediation Board established under Executive Order No. 126. (d) Council means the Tripartite Voluntary Arbitration Advisory Council established under Executive Order No. 126, as amended. (e) Employer includes any person acting in the interest of an employer, directly or indirectly. The term shall not include any labor organization or

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any of its officers or agents except when acting as employer. (f) Employee includes any person in the employ of an employer. The term shall not be limited to the employees of a particular employer, unless this Code so explicitly states. It shall include any individual whose work has ceased as a result of or in connection with any current labor dispute or because of any unfair labor practice if he has not obtained any other substantially equivalent and regular employment. (g) Labor organization means any union or association of employees which exists in whole or in part for the purpose of collective bargaining or of dealing with employers concerning terms and conditions of employment. (h) Legitimate labor organization means any labor organization duly registered with the DOLE, and includes any branch or local thereof. (i) Company union means any labor organization whose formation, function or administration has been assisted by any act defined as unfair labor practice by this Code. (j) Bargaining representative means a legitimate labor organization or any officer or agent of such organization or any officer or agent of such organization whether or not employed by the employer. (k) Unfair labor practice means any unfair labor practice as expressly defined by this Code. (l) Labor dispute includes any controversy or matter concerning terms or conditions of employment or the association or representation of persons, in negotiating, fixing, maintaining, changing, or arranging the terms and conditions of employment, regardless of whether or not the disputants stand in the proximate relation of employers and employees. (m) Managerial employee is one who is vested with powers or prerogatives to lay down and execute management policies and/or to hire, transfer, suspend, lay-off, recall, discharge, assign or discipline employees. Supervisory employees are those who, in the interest of the employer, effectively recommend such managerial actions if the exercise of such authority is not merely routinary or clerical in nature but requires the use of independent judgment. All employees not falling within any of the above definitions are considered rank-and-file employees for purposes of this Book. (n) Voluntary Arbitrator means any person accredited by the Board as such or any person named or designated in the collective bargaining agreement by the parties to act as their voluntary arbitrator, or one chosen with or without

the assistance of the National Conciliation and Mediation Board, pursuant to a selection procedure agreed upon in the collective bargaining agreement, or any official that may be authorized by the Secretary of Labor and Employment to act as voluntary arbitrator upon the written request and agreement of the parties to a labor dispute. (o) Strike means any temporary stoppage of work by the concerted action of employees as a result of any industrial or labor dispute. (p) Lockout means the temporary refusal of an employer to furnish work as a result of an industrial or labor dispute. (q) Internal union dispute includes all disputes or grievances arising from any violation of or disagreement over any provision of the constitution and by-laws of a union, including any violation of the rights and conditions of union membership provided for in this Code. (r) Strike-breaker means any person who obstructs, impedes, or interferes with by force, violence, coercion, threats or intimidation any peaceful picketing by employees during any labor controversy affecting wages, hours or conditions of work in the exercise of the right of self-organization or collective bargaining. (s) Strike area means the establishment, warehouse depots, plant or offices, including the sites or premises used as run-away shops, of the employer struck against, as the immediate vicinity actually used by picketing strikers in moving to and fro before all points of entrance to and exit from said establishment. Important terms, Rule 1, Book V, IRR o Bargaining Unit refers to a group of employees sharing mutual interests within a given employer unit, comprised of all or less than all of the entire body of employees in the employer unit or any specific occupational or geographical grouping within such employer unit o Certification Election or Consent Election refers to the process of determining through secret ballot the sole and exclusive representative of the employees in an appropriate bargaining unit for purposes of collective bargaining or negotiation. A certification election is ordered by the Department, while a consent election is voluntarily agreed upon by the parties, with or without the intervention by the Department

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Labor Relations

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Collective Bargaining Agreement or CBA refers ti the contract between a legitimate labor union and the employer concerning wages, hours of work, and all other terms and conditions of employment in a bargaining unit Employee refers to any person working for an employer. It includes one whose work has ceased in connection with any current labor dispute or because of any unfair labor practice and one who has been dismissed from work but the legality of the dismissal is being contested in a forum of appropriate jurisdiction Employer refers to any person or entity who employs the services of others, one for whom employees work and who pays their wages or salaries. An employer includes any person directly or indirectly acting in the interest of an employer. It shall also refer to the enterprise where a labor organization operates or seeks to operate Exclusive Bargaining Representative refers to a legitimate labor union duly recognized or certified as the sole and exclusive bargaining representative or agent of all the employees in a bargaining unit Inter-Union Dispute refers to any conflict between and among legitimate labor unions involving representation questions for purposes of collective bargaining or to any other conflict or dispute between legitimate labor unions Intra-Union Dispute refers to any conflict between and among union members, including grievances arising from any violation of the rights and conditions of membership, violation of or disagreement over any provision of the unions constitution and by-laws, or disputes arising from chartering or affiliation of union Labor Organization refers to any union or association of employees in the private sector which exists in whole or in part for the purpose of collective bargaining, mutual aid, interest, cooperation, protection, or other lawful purposes Legitimate Labor Organization refers to any labor organization in the private sector registered or reported with the

o o

Department in accordance with Rules III and IV of these Rules Legitimate Workers Association refers to an association of workers organized for mutual aid and protection of its members or for any legitimate purpose other than collective bargaining registered with the Department in accordance with Rule III, Sections 2-C and 2-D of these Rules Lockout refers to the temporary refusal of an employer to furnish work as a result of a labor or industrial dispute Managerial Employee refers to an employee who is vested with powers ot prerogatives to lay down and execute management policies or to hire, transfer, suspend, lay-off, recall, discharge, assign or discipline employees Organized Establishment refers to an enterprise where there exists a recognized or certified sole and exclusive bargaining agent Rank-and-File Employee refers to an employee whose functions are neither managerial nor supervisory in nature Union refers to any labor organization in the private sector organized for collective bargaining and for other legitimate purposes Workers Association refers to an association of workers organized for the mutual aid and protection of its members or for any legitimate purpose other than collective bargaining

Title III. BUREAU OF LABOR RELATIONS

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

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Labor Relations

Atty. Samson Alcantara

any judicial litigation or when public interest or national security so requires. Within 30 days from the execution of a collective bargaining agreement, the parties shall submit copies of the same directly to the Bureau or the Regional Offices of the DOLE for registration accompanied with verified proofs of its posting in 2 conspicuous places in the place of work and ratification by the majority of all the workers in the bargaining unit. The Bureau or Regional Offices shall act upon the application for registration of such collective bargaining agreement within 5 calendar days from receipt thereof. The Regional Officers shall furnish the Bureau with a copy of the CBA within 5 days from its submission. The Bureau or Regional Office shall assess the employer for every CBA a registration fee of not less than P100.00 or in any other amount as may be deemed appropriate and necessary by the SLE for the effective and efficient administration of the voluntary arbitration program. Any amount collected under this provision shall accrue to the Special Voluntary Arbitration Fund. The Bureau shall also maintain a file, and shall undertake or assist in the publication of all final decisions, orders and awards of the SLE, Regional Directors and the Commission.
Rule XVII, Book V Registration of Collective Bargaining Agreements Sec. 1. Where to file. Within 30 days from execution of a CBA, the parties thereto shall submit 2 duly signed copies of the agreement to the Regional Office which issued the certificate of registration/certificate of creation of chartered local of the labor union-party to the agreement. Where the certificate of creation of the concerned chartered local was issued by the Bureau, the agreement shall be filed with the Regional Office which has jurisdiction over the place where it principally operates. Multi-employer CBAs shall be filed with the Bureau. Sec. 2. Requirement of Registration. The application for CBA registration shall be accompanied by the original and 2 duplicate copies of the following documents which must be certified under oath by the representative(s) of the employer(s) and labor union(s) concerned: (a) the collective bargaining agreement; (b) a statement that the CBA was posted in at least 2 conspicuous places in the establishment or establishments concerned for at least 5 days before its ratification; and

(c) a statement that the CBA was ratified by the majority of the employees in the bargaining unit of the employer or employers concerned. No other document shall be required in the registration of CBAs. Sec. 3. Payment of registration fee. The certificate of registration of CBA shall be issued by the Regional Office upon payment of the prescribed registration fee. Sec. 4. Action on the application. The Regional Office and the Bureau shall act on applications for registration of CBAs within 1 day from receipt thereof, either by: (a) approving the application and issuing the certificate of registration; or (b) denying the application for failure of the applicant to comply with the requirements for registration. Where the documents supporting the application are not complete or are not verified under oath, the Regional Office or the Bureau shall, within 1 day from receipt of the application, notify the applicants in writing of the requirements needed to complete the requirements within 10 days from receipt of notice, the application shall be denied without prejudice. Sec. 5. Denial of registration, grounds for appeal. The denial of registration shall be in writing, stating in clear terms the reasons therefor and served upon the applicant union and employer within 24 hours from issuance. The denial by the Regional Office of the registration of single enterprise CBAs may be appealed to the Bureau within 10 days from receipt of the notice of denial. The denial by the Bureau of the registration of multi-employer CBAs may be appealed to the Office of the Secretary within the same period. The memorandum of appeal shall be filed with the Regional Office or the Bureau, as the case may be. The same shall be transmitted, together with the entire records of the application, to the Bureau or the Office of the Secretary, as the case may be, within 24 hours from receipt of the memorandum of appeal. Sec. 6. Period and manner of disposition of appeal. The Bureau and the Office of the Secretary shall resolve the appeal within the same period and in the same manner prescribed in Rule XI of these Rules. Sec. 7. Term of representation status; Contract-Bar Rule. The representation status of the incumbent exclusive bargaining agent which is a party to a duly registered CBA shall be for a term of 5 years from the date of the effectivity of the CBA. No petition questioning the majority status of the incumbent exclusive bargaining agent or petition for certification election filed outside of the 60day period immediately preceding the expiry date of such 5-year term shall be entertained by the Department. The 5-year representation status acquired by an incumbent bargaining agent either through single enterprise collective bargaining or multi-employer bargaining shall not be affected by a subsequent CBA executed between the same bargaining agent and the employer during the same 5year period.

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UST Faculty of Civil Law

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Labor Relations

Atty. Samson Alcantara

Sec. 8. Re-negotiation of collective bargaining agreements. All provisions of a CBA, except the representation status of the incumbent bargaining agent shall, as a matter of right, be re-negotiated not later than 3 years after its execution. The renegotiated CBA shall be ratified and registered with the same Regional Office where the preceding agreement was registered. The same requirements and procedure in the registration of CBAs prescribed in the preceding rules shall be applied.

(d) If the applicant union has been in existence for one or more years, copies of its annual financial reports; and (e) Four copies of the constitution and by-laws of the applicant union, minutes of its adoption or ratification, and the list of the members who participated in it. Art. 234-A. Chartering and Creation of a Local Chapter. A duly registered federation or a national union may directly create a local chapter by issuing a charter certificate indicating the establishment of the local chapter. The chapter shall acquire legal personality only for purposes of filing a petition for certification election from the date it was issued a charter certificate. The chapter shall be entitled to all other rights and privileges of a legitimate labor organization only upon the submission of the following documents in addition to its charter certificate: (a) The names of the chapters officers, their addresses, and the principal office of the chapter; and (b) The chapters constitution and by-laws: Provided, That where the chapters constitution and by-laws are the same as that of the federation or the national union, this fact shall be indicated accordingly. The additional supporting requirements shall be certified under oath by the secretary or treasurer of the chapter and attested by its president. The requirement is not a limitation to the right of assembly or association, which may be exercised with or without said registration, but it is merely a condition sine qua non for the acquisition of legal personality by labor organizations, association, or unions, and the possession of the rights and privileges granted by law to legitimate labor organizations Where there appears no valid or lawful reason to refuse registration of a labor union and there is no plain, speedy and adequate remedy in the ordinary course of law, mandamus will lie against the proper public officer to compel such registration A labor union can be considered an employer of the person who works for it, so it should not be exempted from complying with the very labor laws which it espouses as a labor organization

A CBA duly ratified by a great majority of the workers in the bargaining unit but registered with the DOLE more or less 3 months from its execution is valid and bars a certification election except during the freedom period

Art. 232. Prohibition on certification elections. The Bureau shall not entertain any petition for certification election or any other action which may disturn the administration of existing collective bargaining agreements affecting the parties except under Articles 253, 253-A and 256 of this Code. This provision establishes the contract-bar rule o Where there is an existing CBA, a certification election would serve no useful purpose

Title IV. LABOR ORGANIZATIONS

Chapter 1. REGISTRATION AND CANCELLATION
Art. 234. Requirements of Registration. Any applicant labor organization, association or group of unions of workers shall acquire legal personality and shall be entitled to the rights and privileges granted by law to legitimate labor organizations upon issuance of the certificate of registration based on the following requirements: (a) P50.00 registration fee; (b) The names of its officers, their addresses, the principal address of the labor organization, the minutes of the organizational meetings and the list of the workers who participated in each meeting; (c) The names of all its members comprising at least 20% of all the employees in the bargaining unit where it seeks to operate.

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UST Faculty of Civil Law

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Labor Relations

Atty. Samson Alcantara

Art. 235. Action on Application. The Bureau shall act on all applications for registration within 30 days from filing. All requisite documents and papers shall be certified under oath by the secretary or the treasurer of the organization, as the case may be, and attested to by its president. All that this article requires is that the secretarys certification be under oath, and does not prescribe a specific manner of notarization

(a) Misrepresentation, false statement or fraud in connection with the adoption or ratification of the constitution and by-laws or amendments thereof, the minutes of ratification, and the list of members who took part in the ratification; (b) Misrepresentation, false statements or fraud in connection with the election of officers, minutes of the election of officers, and the list of voters; (c) Voluntary dissolution by the members. Art. 239-A. Voluntary Cancellation of Registration. The registration of a legitimate labor organization may be cancelled by the organization itself: Provided, That at least 2/3 of its general membership votes, in a meeting duly called for that purpose to dissolve the organization: Provided, further, That an application to cancel registration is thereafter submitted by the board of the organization, attested to by the president thereof. Art. 240. Equity of the Incumbent. All existing federations and national unions which meet the qualifications of a legitimate labor organization and none of the grounds for cancellation shall continue to maintain their existing affiliates regardless of the nature of the industry and the location of the affiliates.

Art. 236. Denial of Registration; Appeal. The decision of the Labor Relations Division in the regional office denying registration may be appealed by the applicant union to the Bureau within 10 days from receipt of notice thereof. Art. 237. Additional Requirements for Federations or National Unions. Subject to Article 238 if the applicant for registration is a federation or a national union, it shall, in addition to the requirements of the preceding Articles, submit the following: (a) Proof of the affiliation of at least 10 locals or chapters, each of which must be a duly recognized collective bargaining agent in the establishment or industry in which it operates, supporting the registration of such applicant federation or national union; and (b) The names and addresses of the companies where the locals or chapters operate and the list of all the members in each company involved. Art. 238. Cancellation of Registration. The certificate of registration of any legitimate labor organization, whether national or local, may be cancelled by the Bureau, after due hearing, only on the grounds specified in Article 239 hereof. Art. 238-A. Effect of a Petition for Cancellation of Registration. A petition for cancellation of union registration shall not suspend the proceedings for certification election nor shall it prevent the filing of a petition for certification election. In case of cancellation, nothing herein shall restrict the right of the union to seek just and equitable remedies in the appropriate courts. Art. 239. Grounds for Cancellation of Union Registration. The following may constitute grounds for cancellation of union registration:

Chapter 2. RIGHTS AND CONDITIONS OF MEMBERSHIP

Art. 241. Rights and Conditions of Membership in a Labor Organization. The following are the rights and conditions of membership in a labor organization: (a) No arbitrary or excessive initiation fees shall be required of the members of a legitimate labor organization nor shall arbitrary, excessive or oppressive fines and forfeitures be imposed; (b) The members shall be entitled to full and detailed reports from their officers and representatives of all financial transactions as provided for in the constitution and bylaws of the organization; (c) The members shall directly elect their officers in the local union, as well as their national officers in the national union or federation to which they or their local union is affiliated, by secret ballot at intervals of 5 years. No qualification requirement for candidacy to any position shall be imposed other than membership in good standing in

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UST Faculty of Civil Law

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Labor Relations

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(d)

(e)

(f)

(g)

(h)

(i)

(j)

subject labor organization. The secretary or any other responsible union officer shall furnish the Secretary of Labor and Employment with a list of the newly, elected officers, together with the appointive officers or agents who are entrusted with the handling of funds within 30 calendar days after the election of officers or from the occurrence of any change in the list of officers of the labor organization. The members shall determine by secret ballot, after due deliberation, any question of major policy affecting the entire membership of the organization, unless the nature of the organization, unless the nature of the organization or force majeure renders such secret ballot impractical, in which case the board of directors of the organization may make any decision in behalf of the general membership; No labor organization shall knowingly admit as member or continue in membership any individual who belongs to a subversive organization or who is engaged directly or indirectly in any subversive activity; No person who has been convicted of a crime involving moral turpitude shall be eligible for election as a union officer or for appointment to any position in the union; No officer, agent or member of a labor organization shall collect fees, dues, or other contributions in its behalf or make any disbursement of its money or funds unless he is duly authorized pursuant to its constitution and by-laws; Every payment of fees, dues or other contributions by a member shall be evidenced by a receipt signed by the officer or agent making the collection and entered into the record of the organization to be kept and maintained for the purpose; The funds of the organization shall not be applied for any purpose or object other than those expressly provided by its constitutions and by-laws or those expressly authorized by written resolution adopted by the majority of the members at a general meeting duly called for the purpose; Every income or revenue of the organization shall be evidenced by a record showing its source, and every expenditure of its funds shall be evidenced by a receipt from the person to whom the payment is made, which shall state the date, place and purpose of such payment. Such record or receipt shall

form part of the financial records of the organization. Any action involving the funds of the organization shall prescribe after 3 years from the date of submission of the annual financial report to the DOLE or from the date the same should have been submitted as required by law, whichever comes earlier; Provided, That this provision shall apply only to a legitimate labor organization which has submitted the financial report requirements under this Code: Provided, further, That failure of any labor organization to comply with the periodic financial reports required by law and such rules and regulations promulgated thereunder 6 months after the effectivity of this Act shall automatically result in the cancellation of union registration of such labor organization. (k) The officers of any labor organization shall not be paid any compensation other than salaries and expenses due to their positions as specifically provided for in its constitution and by-laws, or in a written resolution duly authorized by all the members in a general membership meeting duly called for the purpose. The minutes of the meeting and the list of participants and ballots cast shall be subject to inspection by the Secretary of Labor or his duly authorized representatives. Any irregularities in the approval of the resolution shall be a ground for impeachment or expulsion from the organization; (l) The treasurer of any labor organization and every officer thereof who is responsible for the account of such organization or for the collection, management, disbursement, custody or control of the funds, moneys and other properties of the organization, shall render to the organization and to its members a true and correct account of all moneys received and paid by him since he assumed office or since the latest date on which he rendered such account and of the balance remaining in his hands at the time of rendering such account, and of all bonds, securities and other properties of the organization entrusted to his custody or under his control. The rendering of such account shall be made: 1) At least once a year within 30 days after the close of its fiscal year.

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UST Faculty of Civil Law

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Labor Relations

Atty. Samson Alcantara

(m)

(n)

(o)

(p)

2) At such other times as may be required by a resolution of the majority of the members of the organization; and 3) Upon vacating his office. The account shall be duly audited and verified by affidavit and a copy thereof shall be furnished by the Secretary of Labor. The books of accounts and other records of the financial activities of any labor organization shall be open to inspection by any officer or member thereof during office hours; No special assessment or other extraordinary fees may be levied upon the members of a labor organization unless authorized by a written resolution of a majority of all the members in a general membership meeting duly called for the purpose. The secretary of the organization shall record the minutes of the meeting including the list of all members present, the votes cast, the purpose of the special assessment or fees and the recipient of such assessments or fees. The record shall be attested to by the president. Other than for mandatory activities under the Code, no special assessments, attorneys fees, negotiation fees or any other extraordinary fees may be checked off from any amount due to an employee without an individual written authorization duly signed by the employee. The authorization should specifically state the amount, purpose and beneficiary of the deduction; and It shall be the duty of any labor organization and its officers to inform its members on the provisions of its constitution and by-laws, CBA, the prevailing labor relations system and all their rights and obligations under existing labor laws.

A check-off is a process or devise whereby the employer, on agreement with the union recognized as the proper bargaining representative, or on prior authorization from its employees, deducts union dues or agency fees from the latters wages and remits them directly to the union

Chapter 3. RIGHTS OF LEGITIMATE LABOR ORGANIZATIONS

Art. 242. Rights of Legitimate Labor Organizations. A legitimate labor organization shall have the rights: (a) To act as representative of its members for the purpose of collective bargaining; (b) To be certified as the exclusive representative of all the employees in an appropriate collective bargaining unit for purposes of collective bargaining; (c) To be furnished by the employer, upon written request, with his annual audited financial statements, including the balance sheet and the profit and loss statement, within 30 calendar days from the date of receipt of the request, after the union has been duly recognized by the employer or certified as the sole and exclusive bargaining representative of the employees in the bargaining unit, or within 60 calendar days before the expiration of the existing collective bargaining agreement, or during the collective bargaining negotiation. (d) To own property, real or personal, for the use and benefit of the labor organization and its members; (e) To sue and be sued in its registered name; and (f) To undertake all other activities designed to benefit the organization and its members, including cooperative, housing, welfare and other projects not contrary to law. Notwithstanding any provision of a general or special law to the contrary, the income, and the properties of legitimate labor organizations, including grants, endowments, gifts, donations and contributions they may receive from fraternal and similar organizations, local or foreign, which are actually, directly and exclusively used for their lawful purposes, shall be free from taxes, duties and other assessments, including gifts or donations they may receive from fraternal and similar organizations, local or foreign. The exemptions provided herein may be withdrawn only by special law expressly repealing this provision.

For this purpose, registered labor organizations may assess reasonable dues to finance labor relations seminars and other labor education activities. Any violation of the above rights and conditions of membership shall be a ground for cancellation of union registration or expulsion of officer from office, whichever is appropriate. At least 30% of all the members of a union or any member or members especially concerned may report such violation to the Bureau. The Bureau shall have the power to mete the appropriate penalty.

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UST Faculty of Civil Law

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Labor Relations

Atty. Samson Alcantara

Art. 242-A. Reportorial Requirements. The following are documents required to be submitted to the Bureau by the legitimate labor organization concerned: (a) Its constitution and by-laws, or amendments thereto, the minutes of ratification, and the list of members who took part in the ratification of the constitution and by-laws within 30 days from adoption or ratification of the constitution and by-laws or amendments thereto; (b) Its list of officers, minutes of the elections of officers, and list of voters within 30 days from election; (c) Its annual financial report within 30 days after the close of every fiscal year; and (d) Its list of members at least once a year or whenever required by the Bureau. Failure to comply with the above requirements shall not be a ground for cancellation of union registration but shall subject the erring officers or members to suspension, expulsion from membership, or any appropriate penalty. The most important and most far-reaching right of a legitimate labor union is its right to be certified as a bargaining agent of, not only its own members, but all the workers in the bargaining unit concerned Where a labor union is a party in a proceeding and later it loses its registration permit in the course or during the pendency of the case, such union may continue still as a party without need of substitution of parties, subject however to the understanding that whatever decision may be rendered therein will only be binding upon those members of the union who have not signified their desire to withdraw from the case before its trial and decision on the merits

people, rural workers and those without any definite employers may form labor organizations for their mutual aid and protection. Union Security Clauses stipulations in a CBA requiring membership in the contracting union as a condition for employment or retention of employment in the company o Closed Shop Agreement The employer undertakes not to employ any individual who is not a member of the contracting union and to dismiss the said if once employed, he does not, for the duration of the agreement, remain a member of the union in good standing o Union Shop Agreement the employer is permitted to employ an individual who is not a member of the contracting union, but is obliged to dismiss such employee if he does not become a member of the contracting union within a specified period and remain as such in good standing for the duration of the agreement o Maintenance of Membership Clause requires the employer to dismiss employees who are members of the contracting union at the time of the execution of the CBA and those who may thereafter on their own volition become members, IF they do not for the duration of the agreement maintain their membership in good standing

Art. 244. Right of employees in the public service. Employees of government corporations established under the Corporation Code shall have the right to organize and to bargain collectively with their respective employers. All other employees in the civil service shall have the right to form associations for purposes not contrary to law. Art. 245. Ineligibility of Managerial Employees to join any Labor Organization; Right of supervisory employees. Managerial employees are not eligible to join, assist or form any labor organization. Supervisory employees shall not be eligible for membership in the collective bargaining unit of the rank-and-file employees but may join, assist or form separate collective bargaining units and/or legitimate labor organizations of their own. The rank and file union and the supervisors union operating within the same establishment may join the same federation or national union.

Title V. COVERAGE
Art. 243. Coverage and Employees Right to Self-Organization. All persons employed in commercial, industrial and agricultural enterprises and in religious, charitable, medical and educational institutions whether operating for profit or not, shall have the right to self-organization and to form, join, or assist labor organizations of their own choosing for purposes of collective bargaining. Ambulant, intermittent and itinerant workers, self-employed

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UST Faculty of Civil Law

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Labor Relations

Atty. Samson Alcantara

Art. 245-A. Effect of inclusion as members of employees outside the bargaining unit. The inclusion as union members of employees outside the bargaining unit shall not be a ground for the cancellation of the registration of the union. Said employees are automatically deemed removed from the list of membership of said union. Art. 246. Non-abridgement of right to selforganization. It shall be unlawful for any person to restrain, coerce, discriminate against or unduly interfere with employees and workers in their exercise of the right to self-organization. Such right shall include the right to join, or assist labor organizations for the purpose of collective bargaining through representatives of their own choosing and to engage in lawful concerted activities for the same purpose or for their mutual aid and protection, subject to the provisions of Art. 264 of this Code.

(d) During the conciliation proceedings in the Board, the parties are prohibited from doing any act which may disrupt or impede the early settlement of the disputes; and (e) The Board shall exert all efforts to settle disputes amicably and encourage the parties to submit their case to a voluntary arbitrator. Art. 251. Duty to Bargain Collectively in the absence of CBAs. In the absence of an agreement or other voluntary arrangement providing for a more expeditious manner of collective bargaining, it shall be the duty of the employer and the representatives of the employees to bargain collectively in accordance with the provisions of this Code. Art. 252. Meaning of duty to bargain collectively. The duty to bargain collectively means the performance of a mutual obligation to meet and confer promptly and expeditiously in good faith for the purpose of negotiating an agreement with respect to wages, hours of work and all other terms and conditions of employment including proposals for adjusting any grievances, or questions arising under such agreement and executing a contract incorporating such agreement if requested by either party, but such duty does not compel any party to agree to a proposal or to make any concession. Usual provisions, stipulations and clauses in a CBA: o Definition of Bargaining Unit a statement of the scope of the appropriate bargaining unit covered by the agreement and of the positions included and excluded from the unit o Union Security Clause Intended to maintain the strength of the contracting union during the life of the agreement and safeguard it against the perfidy or fickleness of its own members and incursions by the employer o Check-Off Provision the employer undertakes to deduct from the wages of union members union dues and other assessment and remit the same to the treasurer of the union o Management Prerogatives Clause o Economic Benefits o Provision on Administration of Agreement o Voluntary Arbitration Clause o No Strike-No Lockout Clause o Completeness of Agreement

Title VI. UNFAIR LABOR PRACTICES Title VII. COLLECTIVE BARGAINING AND ADMINISTRATION OF AGREEMENTS
Art. 250. Procedure in Collective Bargaining. The following procedure shall be observed in collective bargaining: (a) When a party desires to negotiate an agreement, it shall serve a written notice upon the other party with a statement of its proposals. The other party shall make a reply thereto not later than 10 calendar days from receipt of such notice; (b) Should differences arise on the basis of such notice and reply, either party may request for a conference which shall begin not later than 10 calendar days from the date of request; (c) If the dispute is not settled, the Board shall intervene upon request of either or both parties or at its own initiative and immediately call the parties to conciliation meetings. The Board shall have the power to issue subpoenas requiring the attendance of the parties to such meetings. It shall be the duty of the parties to participate fully and promptly in the conciliation meetings the Board may call;

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UST Faculty of Civil Law

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o o

Provisions on Family Planning, Participation in Sports, etc. Duration of Agreement

for the purpose of collective bargaining. However, an individual employee or group of employees shall have the right at any time to present grievances to their employer. Any provision of law to the contrary notwithstanding, workers shall have the right, subject to such rules and regulations as the SLE may promulgate, to participate in policy and decisionmaking processes of the establishment where they are employed insofar as said processes will directly affect their rights, benefits, and welfare. For this purpose, workers and employers may form labormanagement councils; Provided, That the representatives of the workers in such labormanagement councils shall be elected by at least the majority of all employees in said establishment. Factors in determining the appropriate bargaining unit: o Will of the employees o Affinity and unity of employees interest o Prior collective bargaining history o Employment status

Art. 253. Duty to bargain collectively when there exists a CBA. When there is a CBA, the duty to bargain collectively shall also mean that neither party shall terminate nor modify such agreement during its lifetime. However, either party can serve a written notice to terminate or modify the agreement at least 60 days prior to its expiration date. It shall be the duty of both parties to keep the status quo and to continue in full force and effect the terms and conditions of the existing agreement during the 60day period and/or until a new agreement is reached by the parties. Art. 253-A. Terms of a CBA. Any CBA that the parties may enter into shall, insofar as the representation aspect is concerned, be for a term of 5 years. No petition questioning the majority status of the incumbent bargaining agent shall be conducted by the DOLE outside of the 60-day period immediately before the date of expiry of such 5-year term of the CBA. All other provisions of the CBA shall be renegotiated not later than 3 years after its execution. Any agreement on such other provisions of the CBA entered into within 6 months from the date of expiry of the terms of such other provisions as fixed in the CBA shall retroact to the day immediately following such date. If any such agreement is entered into beyond 6 months, the parties shall agree on the duration of retroactivity thereof. In case of a deadlock in the renegotiation of the CBA, the parties may exercise their rights under this Code. This article has a two-fold purpose: o To promote industrial stability and predictability o To assign specific timetables wherein negotiations become a matter of right and requirement

Art. 254. Injunction Prohibited. No temporary or permanent injunction or restraining order in any case involving or growing out of labor disputes shall be issued by any court or other entity, except as otherwise provided in Arts. 218 and 263 of this Code. Art. 255. Exclusive Bargaining Representation and Workers Participation in Policy and Decision Making. The labor organization designated or selected by the majority of the employees in an appropriate collective bargaining unit shall be the exclusive representative of the employees in such unit

Art. 256. Representation issue in organized establishments. In organized establishments, when a verified petition questioning the majority status of the incumbent bargaining agent is filed by any legitimate labor organization including a national union or federation which has already issued a charter certificate to its local chapter participating in the certification election or a local chapter which has been issued a charter certificate by the national union or federation before the DOLE within the 60day period before the expiration of the CBA, the Med-Arbiter shall automatically order an election by secret ballot when the verified petition is supported by the written consent of at least 25% of all the employees in the bargaining unit to ascertain the will of the employees in the appropriate bargaining unit. To have a valid election, at least a majority of all eligible voters in the unit must have case their votes. The labor union receiving the majority of the valid votes cast shall be certified as the exclusive bargaining agent of all the workers in the unit. When an election which provides for 3 or more choices results in no choice receiving a majority of the valid votes cast, a run-off election shall be conducted between the labor unions receiving the 2 highest number of votes: Provided, That the total number of votes of all contending unions is at least 50% of the number of votes cast. In cases where the petition was filed by a national union or federation, it shall not be

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required to disclose the names of the local chapters officers and members. At the expiration of the freedom period, the employer shall continue to recognize the majority status of the incumbent bargaining agent where no petition for certification election is filed.
Rule IX, Book V Conduct of Certification Election Sec. 1. Raffle of the case. Within 24 hours from receipt of the notice of entry of final judgment granting the conduct of a certification election, the Regional Director shall cause the raffle of the case to an Election Officer who shall have control of the pre-election conference and election proceedings. Sec. 2. Pre-election conference. Within 24 hours from receipt of the assignment for the conduct of a certification election, the election officer shall cause the issuance of notice of pre-election conference upon the contending unions, which shall be scheduled within 10 days from receipt of the assignment. The employer shall be required to submit the certified list of employees in the bargaining unit, or where necessary, the payrolls covering the members of the bargaining unit at the time of the filing of the petition. Sec. 3. Waiver of right to be heard. Failure of any party to appear during the pre-election conference despite notice shall be considered as a waiver of its right to be present and to question or object to any of the agreements reached in the pre-election conference. However, this shall not deprive the non-appearing party of the right to be furnished notices of and to attend subsequent pre-election conferences. Sec. 4. Minutes of pre-election conference. The Election Officer shall keep the minutes of matters raised and agreed upon during the pre-election conference. The parties shall acknowledge the completeness and correctness of the entries in the minutes by affixing their signatures thereon. Where any of the parties refuse to sign the minutes, the Election Officer shall note such fact in the minutes, including the reason for refusal to sign the same. In all cases, the parties shall be furnished a copy of the minutes. The pre-election conference shall be completed within 30 days from the date of the first hearing. Sec. 5. Qualification of voters; inclusion-exclusion. All employees who are members of the appropriate bargaining unit sought to be represented by the petitioner at the time of the issuance of the order granting the conduct of a certification election shall be eligible to vote. An employee who has been dismissed from work but has contested the legality of the dismissal in a forum of appropriate jurisdiction at the time of the issuance of the order for the conduct of a certification election shall be considered a qualified voter, unless his/her dismissal was

declared valid in a final judgment at the time of the conduct of the certification election. In case of disagreement over the voters list or over the eligibility of voters, all contested voters shall be allowed to vote. But their votes shall be segregated and sealed in individual envelopes in accordance with Sec. 10 and 11 of this Rule. Sec. 6. Posting of notices. The Election Officer shall cause the posting of notice of election at least 10 days before the actual date of the election in 2 conspicuous places in the company premises. The notice shall contain: (a) the date and time of the election; (b) Names of all contending unions; (c) the description of the bargaining unit and the list of eligible and challenged voters. The posting of the notice of election, the information required to be included therein and the duration of posting cannot be waived by the contending unions or the employer. Sec. 7. Secrecy and sanctity of the ballot. To ensure secrecy of the ballot, the Election Officer, together with the authorized representatives of the contending unions and the employer, shall before the start of the actual voting, inspect the polling place, the ballot boxes and the polling booths. Sec. 8. Preparation of ballots. The election officer shall prepare the ballots in English and Filipino or the local dialect. The number of ballots should correspond to the number of voters in the bargaining unit plus a reasonably number of extra ballot for contingencies. All ballots shall be signed at the back by the election officer and an authorized representative each of the contending unions. A party who refuses or fails to sign the ballots waives its right to do so and the election officer shall enter the fact of refusal or failure and the reason therefore in the records of the case. Sec. 9. Marking of votes. The voter must put a cross or check marl in the square opposite the name of the union of his choice or No Union if he/she does not want to be represented by any union. If a ballot is torn, defaced or left unfilled in such a manner as to create doubt or confusion or to identify the voter, it shall be considered spoiled. If the voter inadvertently spoils a ballot, he/she shall return it to the Election Officer who shall destroy it and give him/her another ballot. Sec. 10. Procedure in the challenge of votes. When a vote is properly challenged, the Election Officer shall place the ballot in an envelope which shall be sealed in the presence of the voter and the representatives of the contending unions and employer. The Election Officer shall indicate on the envelope the voters name, the union or employer challenging the voter, and the ground for the challenge. The sealed envelope shall then be signed by the Election Officer and the representatives of the contending unions and employer. The Election Officer shall note all challenges in the minutes of the election and shall be responsible for consolidating all envelopes containing the

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challenged votes. The envelopes shall be opened and the question of eligibility shall be passed upon only if the number of segregated votes will materially alter the results of the election. Sec. 11. On-the-spot questions. The Election Officer shall rule on any questions relating to and raised during the conduct of the election, In no case, however, shall the Election Officer rule on any of the grounds for challenge specified in the immediately preceding section. Sec. 12. Protest; when perfected. Any party-in-interest may file a protest based on the conduct or mechanics of the election. Such protests shall be recorded in the minutes of the election proceedings. Protests not so raised are deemed waived. The protesting party must formalize its protest with the Med-Arbiter, with specific grounds, arguments and evidence, within 5 days after the close of the election proceedings. If not recorded in the minutes and formalized within the prescribed period, the protest shall be deemed dropped. Sec. 13. Canvassing of votes. The votes shall be counted and tabulated by the Election Officer in the presence of the representatives of the contending unions. Upon completion of the canvass, the Election Officer shall give each representative a copy of the minutes of the election proceedings and results of the election. The ballots and the tally sheets shall be sealed in an envelope and signed by the Election Officer and the representatives of the contending unions and transmitted to the Med-Arbiter, together with the minutes and results of the election, within 24 hours from the completion of the canvass. Where the election is conducted in more than one region, consolidation of results shall be made within 15 days from the conduct thereof. Sec. 14. Conduct of election and canvass of votes. The election precincts shall open and close on the date and time agreed upon during the pre-election conference. The opening and canvass of votes shall proceed immediately after the precincts have closed. Failure of the representatives of the contending unions to appear during the election proceedings and canvass of votes shall be considered a waiver of the right to be present and to question the conduct thereof. Sec. 15. Certification of Collective Bargaining Agent. The union which obtained a majority of the valid votes cast shall be certified as the sole and exclusive bargaining agent of all the employees in the appropriate bargaining unit within 5 days from the day of the election, provided no protest is recorded in the minutes of the election. Sec. 16. Failure of election. Where the number of votes cast in a certification election or consent election is less than the majority of the number of eligible voters and there are no material challenged votes, the Election Officer shall declare a failure of election in the minutes of the election proceedings.

Sec. 17. Effect of failure of election. A failure of election shall not bar the filing of a motion for the immediate holding of another certification or consent election within 6 months from the date of declaration of failure of election. Sec. 18. Action on the motion. Within 24 hours from receipt of the motion, the Election Officer shall immediately schedule the conduct of another certification or consent election within 15 days from receipt of the motion and cause the posting of the notice of certification election at least 10 days prior to the scheduled date of election in 2 most conspicuous places in the establishment. The same guidelines and list of voters shall be used in the election. Sec. 19. Proclamation and certification of the result of the election. Within 24 hours from final canvass of votes, there being a valid election, the Election Officer shall transmit the records of the case to the Med-Arbiter who shall, within the same period from receipt of the minutes and results of election, issue an order proclaiming the results of the election and certifying the union which obtained a majority of the valid votes cast as the sole and exclusive bargaining agent in the subject bargaining unit, under any of the following conditions: (a) no protest was filed or, even if one was filed, the same was not perfected within the 5-day period for perfection of the protest (b) no challenge or eligibility issue was raised or, even if one was raised, the resolution of the same will not materially change the results of the elections. The winning union shall have the rights, privileges and obligations of a duly certified collective bargaining agent from the time the certification is issued. Where majority of the valid votes cast results in No Union obtaining the majority, the Med-Arbiter shall declare such fact in the order. Rule X, Book V Run-Off Elections Sec. 1. When proper. When an election which provides for 3 or more choices results in none of the contending unions receiving a majority of the valid votes cast, and there are no objections or challenges which if sustained can materially alter the results, the Election Officer shall motu proprio conduct a run-off election within 10 days from the close of the election proceedings between the labor unions receiving the two highest number of votes; provided, that the total umber of votes for all contending unions is at least 50% of the number of votes cast. No Union shall not be a choice in the run-off election. Notice of run-off elections shall be posted by the Election Officer at least 5 days before the actual date of run-off election. Sec. 2. Qualification of voters. The same voters list used in the certification election shall be used in the run-off election. The ballots in the run-off election shall provide as choices the unions receiving the highest and second highest

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number of votes cast. The labor union receiving the greater number of valid votes cast shall be certified as the winner, subject to Sec. 20, Rule IX.

The Bureau shall conduct a certification election within 20 days in accordance with the rules and regulations prescribed by the Secretary of Labor. Art. 258-A. Employer as Bystander. In all cases whether the petition for certification election is filed by an employer or a legitimate labor organization, the employer shall not be considered a party thereto with a concomitant right to oppose a petition for certification election. The employers participation in such proceedings shall be limited to: (1) being notified or informed of petitions of such nature; and (2) submitting the list of employees during the pre-election conference should the MedArbiter act favorably on the petition. Art. 259. Appeal from Certification Election orders. Any party to an election may appeal the order or results of the election as determined by the Med-Arbiter directly to the SLE on the ground that the rules and regulations or parts thereof established by the SLE for the conduct of the election have been violated. Such appeal shall be decided within 15 calendar days.

The existence of a duly registered and filed CBA bars a certification election in the collective bargaining unit EXCEPT within 60 days prior to the expiration of the representation period of the contract. o This is the contract bar rule, intended to assure industrial peace and stability o An unregistered CBA may constitute a bar to a certification election as long as it provides fir substantial benefits to the workers in the bargaining unit and they have accepted and enjoyed the same o Exceptions to the contract bar rule: Where it shown that because of a schism in the union, the contract can no longer serve to promote industrial stability, and the holding of the election is in the interest of industrial stability as well as in the interest of the employees right in the selection of their bargaining representatives The DEADLOCK BAR RULE provides that a petition for certification election can only be entertained if there is no pending bargaining deadlock submitted to conciliation or arbitration or which has become the subject of a valid notice of strike or lockout

Art. 257. Petitions in Unorganized Establishments. In any establishment where there is no certified bargaining agent, a certification election shall automatically be conducted by the Med-Arbiter upon the filing of a petition by any legitimate labor organization, including a national union or federation which has already issued a charter certificate to its local/chapter which has been issued a charter certificate by the national union or federation. In cases where the petition was filed by a national union or federation, it shall not be required to disclose the names of the local chapters officers and members. Art. 258. When an employer may file petition. When requested to bargain collectively, an employer may petition the Bureau for an election. If there is no existing certified CBA in the unit, the Bureau shall, after hearing, order a certification election. All certification cases shall be decided within 20 working days.

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