LABOR LAW ESSENTIALS

From Dean Salvador Poquiz lecture (Overview of Labor Law)

With special emphasis on Labor Relations
CONSTITUTIONAL PROVISION

Art. 13 Rights of worker

o Rights to self organization
o Rights to living wage
o Right to collective bargaining or negotiation
o Right to security of tenure
o Right to just and humane condition of work
o Right to engage in peaceful concerted activities
o Right to strike in accordance with law
o Right to participate in formulation of policy and decision making
processes with the
management (Principle of co-determination,
principle of shared responsibilities)
o Right to profit sharing benefits
Art. 12, Sec.6
o Principle of Distributive Justice defusing, regulate the enjoyment of
property ownership for the common good via the power of eminent
domain.
Art. 19, Sec.5 right to self organization of government
o Cannot have CBA but can have CNA
Art. 19, Sec. 2 (1) Scope of Civil Service
o Chartered government corp., governed by CSC
o Subsidiary of chartered government corp. organized under Corporation
Code, LC.(Corporate offspring)

TYPES OF EMPLOYEES
1. Regular employees
Whether continuous of broken, so long as the employment is for more than
one year, regular employment.
Constant Rehiring, renewal of contract plus one year = regular employment
Necessary and desirable to the usual business or trade of the employer
Usual trade and business = main undertaking of the employer
Expiration of the training period
o Training Period
For Apprentice not more than 6 months but not less than 3
months
Combo of Theoretical Instruction plus OJT(Practical
application)
The apprenticeship period is considered as the
probationary period

Double apprenticeship is not allowed (apprenticeship plus

probationary period). It is against public policies.
Apprentice is entitled to not less than 75% of the
minimum wage as issued by the wage board.
Q: Is the apprentice entitled to full month pay? A: Upon
the expiration of the apprenticeship period or if the
training company availed of the tax deduction scheme for
apprenticeship salary, must pay 100%.
Learnership engaged in non apprenticiable or less skilled
work, OJT plus optional theoretical instruction
Not less than 3 months
No double learnership, period is probationary period
Fixed at 75% of minimum wage as per wage order
Once taken in after learning period, entitled to full
compensation
Disabled/Handicapped maybe regular employee if employed in
a job which is usually necessary and desirable to the usual trade
of business of the employer which his performance is not
affected by his disability.
Age, Physical, mental and sensory defects
Nature of Training as an apprentice or learner apply
the rule

NB: Q: Who has jurisdiction over learnership and apprenticeship disputed?

A: Plant Committee then Department of Labor and Employment. Labor
Arbiter has no jurisdiction. (PAL vs Pano)
2. Probationary Employment
Period can be less than six months, if favorable to the employee as provided
for the employer.
SC: 18 months probationary period can be warranted when the job required
extensive training. The law provides for six months.
During this period, employees are required to comply with the employers
standards.
Probation extension: allowed when agreed upon by the parties when
necessary to comply with the probationary standards of the employer. What
is prohibited is double probation.
But after the extension, the employee still have not reached the standards,
employer can terminate the employee.
3. Seasonal Employment
From season to season
Performing the same task
4. Project Employment
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Hired for specific undertaking or project

Upon termination of project, automatic cessation of employer and employee
relationship
Q: What if there is illegal dismissal during the project? Answer: Reinstatement
during the period of the project and back wages but only during the term of
the project.
Q; when can a project employee be a regular employee? A: Employers are
required to submit termination report of the project to the nearest to the
DOLE Office, failure to do this would make project employees as regular
employee.

5.

Non - project Employees

Hired without reference to a specific project or job.
Hence, they belong to a work pool.
Q: Are they required to go under probationary period? A: Yes.
They will be assigned to various projects or phase of such.

6.

Fixed Term Employees

Contractual employees
Upon signing of the contract, employees knew when it will expire
Once rehired, they will morphed into regular employment. EXPTN: Seamen,
even if rehired cannot be regular employees (Millares vs NLRC)

7. Casual Employees
Activity performed is not usually necessary or desirable in the usual business
or trade of the ER (not regular); not project; not seasonal.
He is uniquely regular because his regularness attaches only to the
particular activity that he has been doing while still a casual.
Prescriptive Period:
1. Purely Money Claims 3 years
2. Criminal cases under LC -3 years, as a general rule.
Exemptions are:
a. Simple Illegal Recruitment 5 years
b. Qualified Illegal Recruitment - 20 years
3. ECC Cases -3 years
4. Illegal Dismissal 4 years
5. GSIS Claims 4 years
Exemption: Payment of premium, its 20 years.(SC)
6. SSS Claims for payment of premiums, 10 years
7. Sexual Harassment 3 years but SC, no prescription, even after four years.

Requirements for Appeal

1. Payment of appeal fee
o Jurisdictional requirement no payment, appeal will be dismissed for
lack of jurisdiction
2. Submission of memorandum of appeal to LA a quo who will submit it to the
NLRC office which has appellate jurisdiction over the LA a quo.
o The NLRC Commissioner can notify the parties to have amicable
settlement base on Art. 221 of LC.
o No amicable settlement, proceed with decision.
o When affirmed in toto, reinstated to the payroll.
o Losing party, file Motion for Reconsideration. Only one MR is allowed.
This is a condition sine qua non for filing of certiorari. (St. Martins
Funeral Home vs. NLRC)
o When MR denied, file a certiorari under Rule 65 to CA within 60 days.
o When Certiorari was denied or unfavorable, file MR again, then when
denied thus upholding NLRC decision, certiorari to SC.
o SC can only review question of law, but can review question of facts
when
1. When decision of LA, NLRC and CA are contrary, in collision or
diametrically opposed to each other.(SC)
o Filing and reckoning period
Reckoning Period: Upon receipt of the counsel of record
Philpost: The date of mailing, date of filing
Private Carrier: The date of receipt of private party, date
of filing
3. Pay appeal Bond
o Cash and surety bond only, but
UERM Case: Property bond can be posted provided it is sufficient
to cover the monetary award
Bank certification, irrevocable bank guarantee are not allowed
Q: Can you file a motion to reduce bond? A; Yes, but it must be
coupled with the payment of the reasonable amount of the
bond. Without the payment, the period will not be tolled.

JURISDICTION OF LABOR ARBITER

Exclusive and Original Jurisdiction
1. Unfair labor practices
2. Termination cases
3. Big Money claims, 5k up
More than 5k, LA has jurisdiction
i.
EXPTN: Big Money Claims bore out of the power of
inspection of Secretary of Labor.
ii.
Power of inspection by Sec. of Labor via the
Regional Director or his representatives. Can be
done moto propio or by a Labor Standards
Complaint of an employee supported by 20% of all
the employees of the employer/plant.
1. Enforcement Order has the force and effect
of a writ of execution.
2. When amount is contested:
If the pieces of evidence are readily
available in the ordinary course of
inspection, the Regional Office retains
jurisdiction.
If
not,
it
will
be
transmitted for compulsory arbitration
to the Regional Arbitration Branch of
the NLRC, thus LA.
4. Small money claims with demand for reinstatement
5k or less, but with claim for reinstatement.
Without demand for reinstatement, Regional Director.
Thus his decision is appealable directly to the NLRC.
5. Other cases involving employer employee relationships
Causal relation between employer employee. Without
this, regular courts will have jurisdiction.
Apply the Four Fold Test to determine employer employee
i.
Selection and engagement of the putative
employee
ii.
Manner of payment of salary or wages
iii.
Presence or absence of the power of dismissal
iv.
Presence or absence of the power control
1. Has primacy over all other
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2. Q: Are all kinds of control indicative of EE-EM

relationship? A: No. If there is lesser control,
no relationship. More control, there is
relationship (Jay Sonza case)
3. Other test in determining relationship.
Economic relations test Sevilla vs.
CA:
The
prevailing
economic
relationship
of
employer
and
employee can be indicative of a
relationship.

Q: Are there instances when there is

no formal contract of employment but
the law mandates the existence of
employer employee relationship? A:
Yes. 1. In cases of labor only
contracting.
As
penalty,
actual
employer deemed as employer of the
contractual employee, the contractor
will be deemed as the agent of the
former.
Q: Can contractual employees
form a union in the actual
employers
premises
when
there
is
a
labor
only
contracting? A.1: Yes, because
the law mandates that the
actual
employer
is
the
employee of the contractors
employee.
A.2: In cases of Working
Scholars
under the law,
the agreement, no employer
employee relationship.
Requirements: There must be
a real opportunity to finish the
course.
NB: For purposes of civil
damages, the working scholar
will be treated as employee and
the school as an employer,
particularly in quasi-delics.
6. Legality of strike and Lockout
Strike is the most lethal weapon on employees
i.
May affect the socio-economic situation of a
country that is why there is a law on strike.
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ii.

Requirements to stage a lawful strike

1. Based on a valid ground
Two Grounds
CBA Deadlock
ULP
Union Busting (w/c is also ULP)
o NB:
Inter/Intra
Union
Disputes, wage distortion
issues are not strikable
issues.
2. Approved by the majority of the total
membership of the union through strike
voting
3. Filing of a Notice of strike
To be filed with NCMB, which will look
into the factual grounds of the strike.
It will either dismiss it by issuing a
preventive mediation order which
will have the effect of making the
strike illegal if it still undertaken and
will convert the issue into a
preventive mediation case.
Must be filed before 30 days in case of
CBA Deadlock and 15 days for ULP.
The period is known as the Cooling Off
Period. Here, the Grievance Machinery
in the CBA will be exhausted.
7 days after failure of the Grievance
Machinery, the issue will be submitted
to Voluntary Arbitration conducted by
a 3rd non-partisan person known as the
Voluntary Arbitrator whose decision
will be appealable to the CA under
Rule 43.
Principle of Improved Offer through
secret balloting, union members can
choice whether or not to accept the
improved offer of the union.
Principle of Reduced Offer through
secret balloting, the BOD or members
of the governing body of the company
can choice WON to accept the reduced
offer of the union.

4.

5.

6.

7.

In both cases, it will have the

effect of retuning to industrial
peace=workers return to work,
employer accepts workers and
resumes operation.
Compulsory Arbitration when
the government intervenes.
Q: During the cooling off period,
officers of the union were dismissed
that seems to tantamount to union
busting. May the union immediately
strike? A: SC: If there is union busting
and the union has already complied
with the 24 hour prior notice rule, 7
day strike report and the notice of
strike has already been submitted,
then a strike can be staged.
Compliance of the 24 hour prior notice
rule of strike vote
Separate notice to DOLE and employer
of the place, time and date of the
strike vote 24 hours before it is
staged.
Submission of the strike vote report
Must be submitted 7 days before the
strike.
Q: What if the strike vote was
submitted during the cooling off
period? A.: The strike vote 7 day
period must be reckoned from the
expiration of the cooling off period.
Compliance of the doctrine of means and
purposes
The purpose of the strike must be
legal and the means to attain the
purpose must be also legal. (e.g.
uttering libelous remarks during the
strike. Thus, commission of illegal acts
during a lawful strike, the strike can be
declared illegal.)
For Hospitals and Medical Institutions:
designation of an effective skeletal force.
NB: Officers of the union is liable for
dismissal for masterminding the illegal
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strike. Basis: Doctrine of Vicarious

Liability.
Members of the union who actively
participated in the illegal strike will
also be liable for dismissal.
Q: Are the abovementioned dismissed
employees entitled to back pay? A: As
a general rule, no. Reason: No work,
no pay. But if they are:
Discriminatorily dismissed
Illegally locked out by employer
When
the
workers
unconditionally offer to return to
work but they were denied to
return to work.
they can return to work
Once a strike is declared legal, the
workers cannot be liable for damages
that occurred during the strike based
on the doctrine of damnum absque
injuria.
You must be unionized (legitimate,
registered) before your strike can be
declared legal.
Q: Can a union not registered conduct
a Certification election? A: Yes, in case
of a local chapter issued with a
chapter certificate. Here the charter
member was issued a charter for
purposes of certificate election. Other
privileges accorded to a union will be
withheld for the meantime until
completion of the other requirements.

Principle of Comingling the rank

and file union and the supervisory
union of the same company can join
the same federation.

Q:
Can
government
employees
unionize? A. Yes. But they dont have
the power to collectively bargain. They
can
only
have
the
power
to
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collectively negotiate. They also

cannot strike because according to SC,
strike of government employees is a
civil service offense. They serve the
people. If you allow the government
employees
to
strike,
it
will
tremendously affect the delivery of
public
service.
It
tantamount
ultimately as an assault to the
sovereignty.

GOCC employees without original

charters can unionize and strike. LRTA
vs Benus: SC said LRTA is a GOCC with
original charter, thus its employees
cannot strike. However, employees of
its subsidiaries or Corporate Offspring
of GOCC with or without original
charter, can strike.

iii.

Types
1.
2.

3.

Managerial,
and
Confidential
employees cannot join a labor union
and strike.
For confidential employee, they must
have access to labor relations matters
to
be
disqualified
for
union
membership.
Cooperative employees who are also
members thereof cannot unionize.
Religious Objectors can choose not to
join a union. However they can vote in
certification election.
of Strikes
Authorized strikes
There must be a strike vote.
Unauthorized strikes
When the there is no strike vote Wild
Cat strike
General Strike
No EE-EM Relationship
Welga ng Bayan SC a form of
Sympathetic Strike
Political in Nature

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4.

5.

6.

7.

Industry
wide
strike
e.g.
all
employees of the air transportation in
the RP
According to SC, these strikes are
unwarranted
Lightning Strike
Brief strike that was stage in short
duration
Slowdown Strike
To reduce company reduction
Types
I.
Sit down strikers remain
in the plant but they
reduce
company
reduction
II.
Quickie some may
remain in the plant or
some may be outside the
plant
Economic Strike
Staged as a result of a collective
bargaining deadlock
ULP Strike
Staged in violation of the workers
right to self organization

7. Damages
8. Employees of GOCC without original charter
9. OFW
Based on Section 10 of RA 8042 as amended RA 10022
10.Over certain churchmen (pastor, ministers)
If its purely religious function, LA has no jurisdiction.
But if not, it has jurisdiction.
11.Collateral Matters
Incidental to the main case
Q: Can a LA award attorneys fees in an illegal dismissal
case? A: Yes. When the LA has jurisdiction over the main
issue of the case, it has jurisdiction over collateral and
incidental matters.
12.3rd Party Compliant of a party not connected to a Labor case that
has been affected by its execution.
NB. Except as otherwise provided by this code. These matters are beyond
the jurisdiction of the Labor Arbiter.
1. Inter/Intra Corporate Disputes
2. Training and learnership agreement disputes
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3. Labor cases against company under rehabilitation proceedings

4. International bodies and organizations
o This will be violative of the convention on protocol and a violation of its
functional immunity.
o DFA vs CA: ADB is an international organization outside the reach of
LA.
5. Art. 263 (g) Assumption power, preemptive power
Provides that the President or Secretary of Labor can assume
jurisdiction of a labor dispute involving industries indispensable
to national interest for its resolution.
The state and government is a passive party.
Q: Can assumption be moto propio? A: Yes.
Q: Can one of the parties to a labor dispute involving a labor
dispute in an industry indispensable to national interest file a
motion for assumption? A: Yes, either by the union or the
employer.
Once assumption is made, an assumption order will be issued.
Legal effects of assumption order:
Once issued, it has the effect of a writ of injunction.
A return to work order is deemed written on the
assumption order.
The workers must report back to work. Failure to do so
would mean that they are now engaging in a
prohibited/illegal activity.
All issues cognizable by the labor arbiter under art. 217
can now be resolved by the assumption officer, when it
is raised under assumption.
UST Faculty Union vs. UST: Assumption of jurisdiction
contemplates actual reinstatement only. Thus, no
choice between payroll or actual reinstatement unlike in
illegal dismissal.

POWERS AND JURISDICTION OF THE NLRC

1. Contempt Power

Two Types
i.
Indirect Contempt
1. To be dealt with by the NLRC and its rules.
ii.
Direct Contempt
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1. By the Rules of Court (R71)

2. Injunctive Power
2. Certification Power
Art. 263 (g) Assumption powers of President and/or
Secretary of Labor.
The President or the Secretary of Labor, upon assumption,
can also certify the labor dispute assumed to compulsory
arbitration. Thus, it is certified to the NLRC which will
resolve the dispute.
Q: Can the labor dispute be certified for voluntary
arbitration? A: Yes. If the Secretary of Labor deems it fit
for voluntary arbitration.
3. Appellate Power
Decisions of LA under Art. 217
Decisions of LA under Art. 128 (b) in relations to
contested cases
Decisions of LA arbiter in wage distortion in non-unionize
companies.
Elements of wage distortion (Pru Bankers Case)
i. Existence hierarchy of positions
ii. There in an increase in the lower pay class
with no corresponding increase higher pay
class
iii. Abolition of the two groups or classes
iv. Wage distortion applies only to the same
region
NB: Q: Who has jurisdiction over wage distortion
problem?
A: For unionize establishment
Voluntary Arbitrator
For non - unionize establishment
Labor Arbiter.
NB:
Although
wage
distortion
problems are not strikable, but for
failure to pay the increase pursuant to
the wage order, the employer will be
liable to pay double the amount of the
increase under the Doctrine of
Double Indemnity.

Decisions of the LA pursuant to Sec. 10 of RA 8042 in cases

of OFW.
Decisions of the RD of their adjudicatory functions under
Art. 129 of LA.
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4. Injunctive Power

Adjudicatory Function
Indications:
1. Filed by house worker or employee
2. No more employer and employee
3. No more claim for reinstatement
4. Claim is not more than 5k.

A hearing must be conducted to observe due process.

Q: Is there a provision in the LC that a TRO is issued
without conducting a hearing by the NLRC? A: Yes, a TRO
is a mere interlocutory order. Thus can be issued ex parte.
But for injunction, a hearing is indispensible

ILLEGAL DISMISSAL (Step by step procedure)

File it with the Regional Arbitration Branch of the NLRC which has territorial
jurisdiction over the workplace of the complainant.
Mandatory Preliminary Conference. Resort to amicable settlement as per Art.
221 of the LC. Second MPC, if first attempt is not successful.
After second MPC, no amicable settlement, LA will mandate parties to submit
position papers.
o SC: Position papers proceedings are not in violation of due process.
Through their papers, they are heard. Plus, technical matters are not
binding in labor proceedings being an administrative proceeding.
o Q: Can one of the parties file a motion to have a trial type proceeding?
A: Yes, but subject to the discretion of the LA.
When final paper has been submitted, LA has 30 days to decide.
Ten calendar days to appeal
No appeal, immediately self-executory as to the reinstatement aspect. No
need for writ of execution.
Virgen Shipping case: As to other matters, a writ of execution is needed.
To be filed after period to appeal expired and no appeal is made.
After the motion for execution, LA will set it for pre-execution conference to
abbreviate the proceedings as to Art. 221 of LC.
If after the pre-execution conference, no settlement, proceed to execution.
Garnishment and levy is allowed when no money to answer for the judgment.
3rd party complaint is cognizable by LA for execution.
o Instances when you can lift or quash the writ of execution:
Issued against a non-party
Issued on account of graft and corruption
Issued on account that the awards is incomplete
Irregularly issued

NB: Doctrine of Immutability of Final Judgment: Final judgments are final and cannot
be modified.

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Grounds for Appeal

o Grave abuse of discretion
o Graft and corruption
o Serious errors in the finding of fact
o Fraud

COLLECTIVE BARGAINING AGREEMENT

Q: What are the modes of determining the representation status?

1. Voluntary Recognition it requires that there is no other union.
Only one union has the support of the majority of the
employees. The employer and employee must inform the
Regional Director of the DOLE of the fact of the voluntary
recognition. From date of recognition, the union becomes a
legitimate labor organization.
o Q: Does the one year bar rule also apply to
voluntary recognition? A: Yes, no election can be
held, 12 months from the date of the final voluntary
recognition election results.
2. Consent election the election was agreed upon by two or more
union.
o Q: Is intervention of DOLE required in consent
election? A: No. Intervention is subject to the
discretion of workers.
o One year bar rule also applies.
3. Certification election one which is conducted among three or
more union. This is treated as the sole concern of the employees
and the employer is a mere by stander and it is the best forum
in determining the will of the employees.
o Sole Concern Rule
o By stander Rule
o Best Forum Rule
Majority must vote 50% plus one
One of the unions or a no union should have garnered
the majority vote. (Second Majority Rule) Provided 50%
of the majority validly cast their votes.
A no union may win in certification election. When a no
union win, the one year bar rule will still applies.
In consent election, 25 % Subscription or Consent
Requirement must be present. If attained, holding of
certification election is mandatory, if not discretionary.
SC: Even if 25% not attained, consent election can still
be held because it is the best way to attain the will of
the workers.
Instances when holding of certification election is not
allowed:
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i.

Contract Bar Rule no CE can be conducted

during the lifespan of the CBA except during the
60 day period (Freedom Period) before the
expiration of the 5 year life span of the CBA
Exemption to the contract bar rule:
a) If the CBA is not registered
o Still valid as to parties but a
CE can now be conducted.
b) If
the
CBA
is
incomplete,
inadequate
or
sub
standard.
(Sweetheart Contract)
c) If the CBA is hastily entered into or
prematurely extended.
d) In cases of mass disaffiliation in the
bargaining agent.
o Q: Can the remaining officers
of the union still bargain with
the employer? A: Yes. Until
and unless it lost in a
certification election, it is
still the bargaining agent.
ii.
One Year Bar Rule no CE may be held one year
after the final result of a prior election. This
applies to all election.
iii.
Deadlock Bar Rule a notice of strike is filed
with the NCMB which has been the subject of
conciliation, mediation, exhaustion of grievance
machineries, improved offer balloting, reduced
offer balloting.
iv.
Charge of Company Union Rule SC: If there is
charged of company unionism which is an unfair
labor practice, it is a prejudicial question which
must be resolved first before conducting a
certification election.
v.
Negotiation Bar Rule if there is a collective
bargaining
negotiation
in
the
company
premises, it will be a bar for certification
election.
vi.
Appeal Bar Rule if there is pending appeal over
a decision of the med arbiter elevated to the
Secretary of Labor, pending decision, no
certification election can be held.
4. Run off or second election
o Contested between two unions garnering the
highest number of votes in a prior election
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A no union does not exist in a runoff election

Contents of a CBA
1. Preamble
2. Union prerogatives
3. Management prerogatives
4. Economic clauses
5. Non economic clauses
6. Union Security Clauses
7. Escalator Clause
8. Family planning clauses
9. Union Education Clauses
10.Grievance Machinery Clause
11.Drug Free Provision Clause
12.Separability Clause
13.Effectivity Clause
14.Automatic Renewal Clause
15.No strike, no lock out clauses
1. Q: can the union waive the right to strike? A: Generally, no.
EXPT: By inserting in the CBA a no strike, no lock out clause
Term of CBA
1. As to representation aspects 5 years
2. As to renegotiation aspects 3 years
Q: Upon expiration of the CBA, and no new CBA has been agreed upon yet,
what will govern? A: Old CBA subsists under the Principle of CBA Continuity.
Q: Can the parties agree to suspend collective bargaining for 10 years? A:
Yes, in order to provide stability and predictability of collective bargaining
agreements for the benefit of both parties.
SC: The Company can sue employees for violation of a CBA provision.
Q: Why do workers unionize? A: 1. In order to have relative equality in the
bargaining process with the employer. 2. Security of tenure. 3. Attain
maximum economic benefits in the collective bargaining agreement.
Q: Can a single employee bargain with management? A: Yes, there is no law
prohibiting individual bargaining.
Q: If an employer is already giving out voluntary benefits, can the employees
still demands for 13th Month Pay? A: It depends. If the amount of voluntary
benefits given is equal to the amount of the 13 th Month Pay, no more. But if
its less, they can.
In the event that the CBA is approved, it will govern the company premises or
the law of the plant. Thus, the law of the plant is another name for a CBA.
Whatever benefits that the CBA may bring, non members of the union are
also benefitted. They are not required to pay union dues but they will pay
agency fees that will be of the same amount as that of union dues. Payment
of the agency fee is known as the agency shop, maintenance of the
treasury shop, anti-hitchhiker clause, anti-free rider clause.
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Q: Is there still a need for the union and the company to agree to impose
agency shop? A: No need. The agency shop agreement is already provided for
by law.
Doctrine of Union Monopoly/Exclusive Right Rule the certified union is
the only bargaining agent allowed to bargain with the management to the
exclusion of the other unions in the plant or company premises.

UNFAIR LABOR PRACTICES

An act either by the employer or the union, their agent or representatives

which violates the constitutional right of the workers to self organization.
There must be employer and employer relationship.
Instances when ULP can be committed even if there is no EE-EM relationship:
1. When committed by agents or representative
2. Yellow dog contract an applicant is made to denounce his
membership to a union or promised not to join one as a
condition for employment. Hence, being an applicant, no
employer and employee relationship yet.
Two Types of ULP
o By employer
1. Interference, restraint , coercion in the formation of a union
Discourage the formation or continuation of a union
3 ways of commission
i. Economic
ii. Psychological
iii. Physical
2. Yellow dog contract
3. Discrimination
Not per se illegal. Only if its designed, calculated to
discriminate the officers and members of union with
regards to benefits due to all employees.
It maybe management prerogative. But if its a grand
design to undermine the union, then it is ULP
4. Forming or assisting in forming a company dominated union
SC: Passivity of a union is an indication of a company
dominated union.
Organize with help or assistance of management.
Economic, legal support from employer
5. Refusal to bargain collectively
Duty to bargain collectively mutual obligation of the
parties to bargain and negotiate with matters
regarding terms of employment and adjustments of
grievance machineries for redress of grievances
promptly, expeditiously and in good faith.
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Standards of Collective Bargaining;

i. Mutual either the parties may initiate
collective bargaining.
Union may submit CBA proposal.
Employer, after 10 days, may
submit a counter proposal. Failure
to submit a counter proposal will
amount to refusal to bargain, thus
a ULP and the CBA submitted by
the union will be governing CBA in
the plant.
Q:
A
counter
proposal
was
submitted, the employer made it
hard for employees to bargain
during the negotiations with no real
intention to sign a CBA. Is the
employer guilty of ULP? A: Yes, the
employer is guilty of Surface
Bargaining.
Blue Sky Bargaining - the union
submitted
a
proposal
which
contains
economic
demands
beyond the reach and capacity of
the employers, thus sky high.
Runaway Shop when the
employer remove his plant or office
from one place to another in order
to evade unionism or collective
bargaining and relocate it to
another place which is called as
runaway area.
Q: Is it valid to strike in the
Runaway Area? A: Yes. According to
the Labor Code, strike areas also
include runaway areas.
ii. Prompt
iii. Good faith
Q: What if employer submit a
counterproposal on a take it or
leave it basis, is the employer
liable for refusal to bargain
collectively? A: Yes. The employer
is guilty of Boulwarism. This is

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considered a malpractice which is a

violation of good faith bargaining.
6. Contracting out of services
SC: Mere contracting out within the period of six
months is valid. But if it goes beyond six months, it is
ULP. Because employer deny the strikers the
opportunity to pursue their work.
7. Gross and flagrant violations of the CBA
Refers to economic provisions
o

By Union
1. Interference, restraint , coercion in the formation of a union
2. Discrimination
3. Payment of Negotiation Fees
It is when in order to settle economic provisions in CBA,
union demands from employer negotiation fees.
Sweetheart Contract when the CBA was not able to
get full economic benefits for employees, or its an
incomplete CBA. Example: when CBA does not have an
arbitration clause.
o NB: An incomplete CBA does not bar a
certification election. Thus not bar on holding
another certification election during the 12
month ban.
4. Gross and flagrant violations of CBA
5. Refusal to bargain collectively
6. Featherbedding Activities
Union demanding from employers for fees on services
rendered or not rendered, performed or not performed.
Prolonging the work
In short, the union is engaged in extortion

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