A Fundamental Principles and Policies

ChanRobles Internet Bar Review : ChanRobles Professional Review, Inc.
LAST-MINUTE
NOTES ON THE 2011 BAR EXAMINATION IN LABOR LAW BASED ON THE
SUPREME COURT-PRESCRIBED SYLLABUS
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Prof. Joselito Guianan Chan
A. FUNDAMENTAL PRINCIPLES AND POLICIES

[These 8-part Notes discuss all topics/sub-topics in the Supreme Court-prescribed Syllabus for Labor Law]
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1. Constitutional Provisions
a. Art II, Secs. 9, 10, 11, 13, 14, 18, 20.
b. Art III, Secs. 1, 4, 8.
c. Art. XIII, Secs. 1, 2, 3, 14.
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3. Labor Code
a. Article 3
b. Article 211
c. Article 212
d. Article 255
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2. New Civil Code

a. Article 1700
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TOPIC UNDER THE SYLLABUS:
1. Constitutional Provisions
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1.CONSTITUTIONALPROVISIONS.
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ARTICLEII
DECLARATIONOFPRINCIPLESANDSTATEPOLICIES
STATEPOLICIES
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ThefollowingaretheprovisionsoftheConstitutionmentionedintheSyllabus.Therevieweeisadvisedto
befamiliarwiththekeywordsorkeytermsfoundintheprovisionswhich,forpurposesofeaseandconvenience,
areunderlinedherein:
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Section 9. The State shall promote a just and dynamic social order that will ensure the
prosperityandindependenceofthenationandfreethepeoplefrompovertythroughpolicies
thatprovideadequatesocialservices,promotefullemployment,arisingstandardofliving,and
animprovedqualityoflifeforall.
Section10.TheStateshallpromotesocialjusticeinallphasesofnationaldevelopment.
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Section11.TheStatevaluesthedignityofeveryhumanpersonandguaranteesfullrespectfor
humanrights.
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Section13.TheStaterecognizesthevitalroleoftheyouthinnationbuildingandshallpromote
andprotecttheirphysical,moral,spiritual,intellectual,andsocialwellbeing.Itshallinculcate
intheyouthpatriotismandnationalism,andencouragetheirinvolvementinpublicandcivic
affairs.
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Section 14. The State recognizes the role of women in nationbuilding, and shall ensure the
fundamentalequalitybeforethelawofwomenandmen.
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Section18.TheStateaffirmslaborasaprimarysocialeconomicforce.Itshallprotecttherights
ofworkersandpromotetheirwelfare.
Section 20. The State recognizes the indispensable role of the private sector, encourages
privateenterprise,andprovidesincentivestoneededinvestments.
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TOPICS UNDER THE SYLLABUS
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LABOR LAW: A. FUNDAMENTAL PRINCIPLES AND POLICIES

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Section1.Nopersonshallbedeprivedoflife,liberty,orpropertywithoutdueprocessoflaw,
norshallanypersonbedeniedtheequalprotectionofthelaws.
Section 4. No law shall be passed abridging the freedom of speech, of expression, or of the
press, or the right of the people peaceably to assemble and petition the government for
redressofgrievances.
ARTICLEXIII
SOCIALJUSTICEANDHUMANRIGHTS
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Section8.Therightofthepeople,includingthoseemployedinthepublicandprivatesectors,
to form unions, associations, or societies for purposes not contrary to law shall not be
abridged.
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Section1.TheCongressshallgivehighestprioritytotheenactmentofmeasuresthatprotect
andenhancetherightofallthepeopletohumandignity,reducesocial,economic,andpolitical
inequalities,andremoveculturalinequitiesbyequitablydiffusingwealthandpoliticalpower
forthecommongood.
Section 2. The promotion of social justice shall include the commitment to create economic
opportunitiesbasedonfreedomofinitiativeandselfreliance.
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To this end, the State shall regulate the acquisition, ownership, use, and disposition of
propertyanditsincrements.
ARTICLEXIII
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Section 3. The State shall afford full protection to labor, local and overseas, organized and
unorganized,andpromotefullemploymentandequalityofemploymentopportunitiesforall.
It shall guarantee the rights of all workers to selforganization, collective bargaining and
negotiations,andpeacefulconcertedactivities,includingtherighttostrikeinaccordancewith
law.Theyshallbeentitledtosecurityoftenure,humaneconditionsofwork,andalivingwage.
They shall also participate in policy and decisionmaking processes affecting their rights and
benefitsasmaybeprovidedbylaw.
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TheStateshallpromotetheprincipleofsharedresponsibilitybetweenworkersandemployers
and the preferential use of voluntary modes in settling disputes, including conciliation, and
shallenforcetheirmutualcompliancetherewithtofosterindustrialpeace.
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TheStateshallregulatetherelationsbetweenworkersandemployers,recognizingtherightof
labor to its just share in the fruits of production and the right of enterprises to reasonable
returnstoinvestments,andtoexpansionandgrowth.
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WOMEN
Section 14. The State shall protect working women by providing safe and healthful working
conditions,takingintoaccounttheirmaternalfunctions,andsuchfacilitiesandopportunities
thatwillenhancetheirwelfareandenablethemtorealizetheirfullpotentialintheserviceof
thenation.
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2.CONSTITUTIONALPROVISIONSNOTAPPLICABLETOLABORCASES.
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The following constitutional rights and precepts may NOT be invoked in labor cases, particularly in
administrativeinvestigationsleadingtotheterminationofemployment:
a.ConstitutionalDueProcess:
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i.Serranov.NLRCcase.
Inthe2000enbancdecisioninthecaseofSerranov.NLRC,[G.R.No.117040,January27,2000],theSupreme
CourtdistinguisheddenialofdueprocessbytheStateanddenialofdueprocessbytheemployer.Itthusconcludedthat
theviolationbytheemployerofthenoticerequirementcannotbeconsideredadenialofdueprocessaswouldresultin
thenullityoftheemployeesdismissalorlayoff.Thefollowingreasonswerecited:
1. TheDueProcessClauseoftheConstitutionisalimitationongovernmentalpowers.Itdoesnot
applytotheexerciseofprivatepower,suchastheterminationofemploymentundertheLabor
Code.
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ThemostimportantprovisionthattherevieweeshouldtakenoteofisSection3ofArticleXIIIwhichisthesocalled
protectiontolaborclauseintheConstitution.Itreadsasfollows:
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ARTICLEIII
BILLOFRIGHTS


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ii.Agabonv.NLRCcase.
In the 2004 en banc decision in the case of Agabon v. NLRC, [G.R. No. 158693, November 17, 2004], the
SupremeCourtfurtherexpoundedonthedoctrinelaiddowninSerranobymakingadistinctionbetweenconstitutional
dueprocessandstatutorydueprocess.Thus:
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Constitutional due process protects the individual from the government and assures him of his rights in
criminal, civil or administrative proceedings; while statutory due process found in the Labor Code and Implementing
Rules protects employees from being unjustly terminated without just cause after notice and hearing.
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b.RighttoEqualProtectionoftheLaws.
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Itisasettledprinciplethatthecommandsoftheequalprotectionclauseareaddressedonlytothestateor
thoseactingundercolorofitsauthority. Theequalprotectionclauseerectsnoshieldagainstmerelyprivateconduct,
however,discriminatoryorwrongfulitmayhavebeen.
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DuncanAssociationofDetailmanPTGWOv.GlaxoWelcomePhilippines,Inc.,[G.R.No.162994,September
17,2004].
Theemployerspolicyprohibitingitsemployeesfromanypersonalormaritalrelationshipswithemployeesof
competitorcompanieswasheldnotviolativeoftheequalprotectionclauseintheConstitutionandnotunreasonable
under the circumstances because relationships of that nature might compromise the interests of the company.
Significantly,thecompanyactuallyenforcedthepolicyafterrepeatedrequeststotheemployeetocomplytherewith.
Indeed,theapplicationofthesaidpolicywasmadeinanimpartialandevenhandedmannerwithdueregardforthelot
oftheemployee.Inanyevent,fromthewordingsofthecontractualprovisionandthepolicyinitsemployeehandbook,
itisclearthatthecompanydoesnotimposeanabsoluteprohibitionagainstrelationshipsbetweenitsemployeesand
thoseofcompetitorcompanies.Itsemployeesarefreetocultivaterelationshipswithandmarrypersonsoftheirown
choosing.Whatthecompanymerelyseekstoavoidisaconflictofinterestbetweentheemployeesandthecompany
thatmayariseoutofsuchrelationships.
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Yrasueguiv.PhilippineAirlines,Inc.,[G.R.No.168081,October17,2008].
Petitioner was dismissed because of his failure to measure up to the weight standards set by respondent. His
terminationduetoobesitywasheldlegalandnotviolativeoftheequalprotectionclauseintheConstitution.The
HighCourtobservedthattheUnitedStatesSupremeCourt,ininterpretingtheFourteenthAmendmentwhichisthe
source of the equal protection guarantee in the 1987 Constitution, is consistent in saying that theequal
protectionclauseerectsnoshieldagainstprivateconduct,howeverdiscriminatoryorwrongfulitmaybe.Privateactions,
nomatterhowegregious,cannotviolatetheequalprotectionguarantee.
c.RighttoCounsel.
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Manuelv.N.C.ConstructionSupply,[G.R.No.127553,November28,1997,282SCRA326].
TherighttocounselunderSection12ofArticleIII[BillofRights]ofthe1987Constitutionismeanttoprotecta
suspect ina criminalcase who is undercustodial investigation. Custodialinvestigation is the stage where thepolice
investigationisnolongerageneralinquiryintoanunsolvedcrimebuthasbeguntofocusonaparticularsuspectwho
hasbeentakenintocustodybythepolicetocarryoutaprocessofinterrogationthatlendsitselftoelicitincriminating
statements.Itisthatpointwhenquestionsareinitiatedbylawenforcementofficersafterapersonhasbeentakeninto
custodyorotherwisedeprivedofhisfreedomofactioninanysignificantway.Therighttocounselattachesonlyupon
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Resultantly, where there is just cause for dismissal but due process has not been properly observed by an
employer, it would not be right to order either the reinstatement of the dismissed employee or the payment of
backwagestohim.Infailing,however,tocomplywiththeprocedureprescribedbylaw(Article277[b]oftheLaborCode)
interminatingtheservicesoftheemployee,theemployermustbedeemedtohaveoptedor,inanycase,shouldbe
madeliable,forthepaymentofseparationpay.Itmightbepointedoutthatthenoticetobegivenandthehearingtobe
conductedgenerallyconstitutethetwopartdueprocessrequirementoflawtobeaccordedtotheemployeebythe
employer.Nevertheless,peculiarcircumstancesmightobtainincertainsituationswheretoundertaketheabovesteps
wouldbenomore thanauseless formality and where,accordingly, it wouldnotbe imprudentto applythe res ipsa
loquiturruleandaward,inlieuofseparationpay,nominaldamagestotheemployee.
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2. The notice and hearing required under the Due Process Clause applies before the power of
organized society are brought to bear upon the individual. This is obviously not the case of
terminationofemploymentunderArticles282and283oftheLaborCodebecausetheemployee
isnotfacedwithanaspectoftheadversarysystem.Thepurposefortherequirementofnotice
andhearingisnottocomplywithDueProcessClauseoftheConstitution.Thetimefornoticeand
hearingisatthetrialstage.Thenthatisthetimewespeakofnoticeandhearingastheessenceof
proceduraldueprocess.Thus,compliancebytheemployerwiththenoticerequirementbeforehe
dismisses an employee does not foreclose the right of the latter to question the legality of his
dismissal.
3. The notice requirement under Articles 282 and 283 of the Labor Code cannot be considered a
requirement of the Due Process Clause since the employer cannot really be expected to be
entirelyanimpartialjudgeofhisowncause.


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the start of such investigation. Therefore, the exclusionary rule under said provision of the Bill of Rights of the1987
Constitution applies only to admissions made in a criminal investigation but not to those made in an administrative
investigation.Thus,iftheinvestigationconductedbytheemployerismerelyadministrativeandnotcriminalincharacter,
theadmissionsmadeduringsuchinvestigationmaybeusedasevidencetojustifydismissal.
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d.RightAgainstSelfIncrimination.
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e.RightAgainstUnreasonableSearchesandSeizures.
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SECTION2.ContractofLabor(n)
United States v. Navarro, G.R. No. 1272, Jan. 11, 1904, 3 Phil. 143.
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b.3partiestoalaborcase.
Everylaborcasealwaysconcernsandinvolvesthree(3)parties,namely:
1.theworkerorhisorganizationwhichmayormaynotbeaunion;
2.theemployerwhomaybeanindividualoracorporateperson;and
3.thepublic.
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Art.1700.Therelationsbetweencapitalandlaborarenotmerelycontractual.Theyareso
impressed with public interest that labor contracts must yield to the common good.
Therefore, such contracts are subject to the special laws on labor unions, collective
bargaining,strikesandlockouts,closedshop,wages,workingconditions,hoursoflaborand
similarsubjects.
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a.OnlyCivilCodeprovisioncitedintheSyllabus.
TheonlyprovisionintheCivilCodecitedintheSyllabusreadsasfollows:
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1.CIVILCODEPROVISION.
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WaterousDrugCorporationv.NLRC,[G.R.No.113271,October16,1997,280SCRA735].
Theconstitutionallyguaranteedrightagainstunreasonablesearchesandseizuresmaynotbeinvokedagainst
theemployer.Asappliedtolaborcases,theSupremeCourtdeclaredthatitfindsnoreasontorevisethedoctrinelaid
down in People v. Marti, [G.R. No. 81561, January 18, 1991, 193 SCRA 57], that the Bill of Rights does not protect
citizensfromunreasonablesearchesandseizuresperpetratedbyprivateindividuals.Itisnottruethatthecitizenshave
norecourseagainstsuchassaults.Onthecontrary,suchaninvasiongivesrisetobothcriminalandcivilliabilities.
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2. New Civil Code
a. Article 1700
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Pascual,Jr.v.BoardofMedicalExaminers,[G.R.No.L25018,May26,1969];Cabalv.Kapunan,Jr.,[G.R.No.
L19052,December29,1962].
Thisconstitutionallyguaranteedrightwhichisusuallyinvokedincriminalcases,maybevalidlyinvokedinan
administrativeproceedingifitpartakesofthecharacterofacriminalproceedingbecauseofthenatureofthepenalty
thatmaybeimposedfortheoffense.
Therightagainstselfincriminationwasestablishedonthegroundofpublicpolicyandhumanity.Ofpolicy,
becauseifthepartywererequiredtotestify,itwouldplacehimunderthestrongesttemptationtocommitperjury;and
ofhumanity,becauseitwouldpreventtheextortingofconfessionbyduress.1
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Punzalv.ETSITechnologies,Inc.,[G.R.Nos.17038485,March9,2007].
But according to this case, the failure of the employer to inform the employee who is undergoing
administrativeinvestigationofhisrighttocounselwouldamounttodeprivationofdueprocess.Petitionerscontention
thatshewasdenieddueprocesswasupheldbecausetherecordsdonotshowthatshewasinformedofherrighttobe
representedbycounselduringtheconferencewithheremployer.Theprotestationsofrespondentemployerthatthe
righttobeinformedoftherighttocounseldoesnotapplytoinvestigationsbeforeadministrativebodiesandthatlaw
andjurisprudencemerelygivetheemployeetheoptiontosecuretheservicesofcounselinahearingorconference,fall
inthelightoftheclearprovisionofArticle277(b)oftheLaborCodethattheemployerxxxshallafford[theworker
whoseemploymentissoughttobeterminated]ampleopportunitytobeheardandtodefendhimselfwiththeassistance
ofhisrepresentativesifhesodesiresinaccordancewithcompanyrulesandregulationspursuanttoguidelinessetbythe
Department of Labor and Employment, and the Supreme Courts explicit pronouncement that [a]mple opportunity
connoteseverykindofassistancethatmanagementmustaccordtheemployeetoenablehimtoprepareadequatelyfor
hisdefenseincludinglegalrepresentation.Consequently,thepetitionerwasawardednominaldamagesintheamount
ofP30,000.00forviolationofherrighttostatutorydueprocess.


Thefollowingfour(4)provisionsoftheLaborCodearecitedintheSyllabus:
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ART. 3. Declaration of basic policy. The State shall afford protection to labor, promote full
employment,ensureequalworkopportunitiesregardlessofsex,raceorcreedandregulatethe
relationsbetweenworkersandemployers.TheStateshallassuretherightsofworkerstoself
organization, collective bargaining, security of tenure, and just and humane conditions of
work.
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Article.211.DeclarationofPolicy.A.ItisthepolicyoftheState:
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B.Toencourageatrulydemocraticmethodofregulatingtherelationsbetweentheemployers
andemployeesbymeansofagreementsfreelyenteredintothroughcollectivebargaining,no
courtoradministrativeagencyorofficialshallhavethepowertosetorfixwages,ratesofpay,
hours of work or other terms and conditions of employment, except as otherwise provided
underthisCode.
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Article 1702 thereof.
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Article.212.Definitions.
(a)"Commission"meanstheNationalLaborRelationsCommissionoranyofitsdivisions,asthe
casemaybe,asprovidedunderthisCode.
(b)"Bureau"meanstheBureauofLaborRelationsand/ortheLaborRelationsDivisionsinthe
regionalofficesestablishedunderPresidentialDecreeNo.1,intheDepartmentofLabor.
(c)"Board"meanstheNationalConciliationandMediationBoardestablishedunderExecutive
OrderNo.126.
(d) "Council" Tripartite Voluntary Arbitration Advisory Council established under Executive
OrderNo.126,asamended.
(e) Employerincludesanypersonactingintheinterestofanemployer,directlyorindirectly.
Thetermshallnotincludeanylabororganizationoranyofitsofficersoragentsexceptwhen
actingasemployer.
(f) Employeeincludesanypersonintheemployofanemployer.Thetermshallnotbelimited
totheemployeesofaparticularemployer,unlesstheCodesoexplicitlystates.Itshallinclude
anyindividualwhoseworkhasceasedasaresultoforinconnectionwithanycurrentlabor
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(a) To promote and emphasize the primacy of free collective bargaining and
negotiations,includingvoluntaryarbitration,mediationandconciliation,asmodesof
settlinglabororindustrialdisputes;
(b) To promote free trade unionism as an instrument for the enhancement of
democracyandthepromotionofsocialjusticeanddevelopment;
(c) To foster the free and voluntary organization of a strong and united labor
movement;
(d)Topromotetheenlightenmentofworkersconcerningtheirrightsandobligations
asunionmembersandasemployees;
(e)Toprovideanadequateadministrativemachineryfortheexpeditioussettlement
oflabororindustrialdisputes;
(f)Toensureastablebutdynamicandjustindustrialpeace;and
(g) To ensure the participation of workers in decision and policymaking processes
affectingtheirrights,dutiesandwelfare.
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1.LABORCODEPROVISIONS.
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c.Someprinciplesonthisprovision.
Incasethereisaclashbetweenlaborandmanagement,itisanacceptednormthattherightsofthegeneral
public,representedbythestate,areparamount.2
TheconcernofthelawfortheworkersisfurtherstressedintheprovisionintheCivilCodewhichordainsthatin
caseofdoubt,alllaborlegislationsandalllaborcontractsshallbeconstruedinfavorofthesafetyanddecentlivingfor
thelaborers.3
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3. Labor Code
a. Article 3
b. Article 211
c. Article 212
d. Article 255
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Article 255. Exclusive bargaining representation and workers participation in policy and
decisionmaking. The labor organization designated or selected by the majority of the
employeesinanappropriatecollectivebargainingunitshallbetheexclusiverepresentativeof
the employees in such unit for the purpose of collective bargaining. However, an individual
employeeorgroupofemployeesshallhavetherightatanytimetopresentgrievancestotheir
employer.
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Anyprovisionoflawtothecontrarynotwithstanding,workersshallhavetheright,subjectto
such rules and regulations as the Secretary of Labor and Employment 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
therepresentativesoftheworkersinsuchlabormanagementcouncilsshallbeelectedbyat
leastthemajorityofallemployeesinsaidestablishment.
2.INRE:FIRSTPARAGRAPHOFARTICLE255:
a.Exclusivebargainingrepresentative;meaning.
Exclusive bargaining representative or exclusivebargaining agent refers to a legitimate laborunionduly
recognizedorcertifiedasthesoleandexclusivebargainingrepresentativeoragentofalltheemployeesinabargaining
unit.
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disputeorbecauseofanyunfairlaborpracticeifhehasnotobtainedanyothersubstantially
equivalentandregularemployment.
Labororganizationmeansanyunionorassociationofemployeeswhichexistsinwholeorin
partforthepurposeofcollectivebargainingorofdealingwithemployersconcerningterms
andconditionsofemployment.
Legitimate labor organization means any labor organization duly registered with the
DepartmentofLaborandEmployment,andincludesanybranchorlocalthereof.
Companyunionmeansanylabororganizationwhoseformation,functionoradministration
hasbeenassistedbyanyactdefinedasunfairlaborpracticebythisCode.
Bargainingrepresentativemeansalegitimatelabororganizationwhetherornotemployed
bytheemployer.
UnfairlaborpracticemeansanyunfairlaborpracticeasexpresslydefinedbytheCode.
Labor dispute includes any controversy or matter concerning terms and 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
whetherthedisputantsstandintheproximaterelationofemployerandemployee.
Managerialemployeeisonewhoisvestedwiththepowersorprerogativestolaydownand
execute management policies and/or to hire, transfer, suspend, layoff, recall, discharge,
assignordisciplineemployees.Supervisoryemployeesarethosewho,intheinterestofthe
employer,effectivelyrecommendsuchmanagerialactionsiftheexerciseofsuchauthorityis
notmerelyroutinaryorclericalinnaturebutrequirestheuseofindependentjudgment.All
employees not falling within any of the above definitions are considered rankandfile
employeesforpurposesofthisBook.
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
CollectiveBargainingAgreement,oranyofficialthatmaybeauthorizedbytheSecretaryof
Labor and Employment to act as Voluntary Arbitrator upon the written request and
agreementofthepartiestoalabordispute.
Strikemeansanytemporarystoppageofworkbytheconcertedactionofemployeesasa
resultofanindustrialorlabordispute.
Lockout means any temporary refusal of an employer to furnish work as a result of an
industrialorlabordispute.
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
violationoftherightsandconditionsofunionmembershipprovidedforinthisCode.
Strikebreaker means any person who obstructs, impedes, or interferes with by force,
violence,coercion,threats,orintimidationanypeacefulpicketingaffectingwages,hoursor
conditionsofworkorintheexerciseoftherightofselforganizationorcollectivebargaining.
Strikeareameanstheestablishment,warehouses,depots,plantsoroffices,includingthe
sites or premises used as runaway shops, of the employer struck against, as well as the
immediatevicinityactuallyusedbypicketingstrikersinmovingtoandfrobeforeallpointsof
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Alaborunioncertifiedasthesoleandexclusivebargainingagentmeansthatitshallremainassuchduring
theexistenceoftheCBA,totheexclusionofotherlabororganizations,andnopetitionquestioningitsmajoritystatus
shallbeentertainednorshallcertificationelectionbeconductedoutsideofthesixtydayfreedomperiodimmediately
beforetheexpirydateofthefiveyeartermoftheCBA.
Oncecertified,whatisrepresentedbythebargainingagentarenotonlyitsmembersbutalsoitsnonmembers
whoareincludedinthebargainingunit.
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InsularHotelEmployeesUnionNFLv.WaterfrontInsularHotelDavao,[G.R.Nos.17404041,September22,
2010].
This case reiterated the said ruling in Tabigue. In this case, the Davao Insular Hotel Free Employees Union
National Federation of Labor (DIHFEUNFL), the recognized labor organization in respondent hotel entered into a
MemorandumofAgreement(MOA)withtherespondentwhichsupersededtheaffectedprovisionsoftheexistingCBA.
The MOA was executed to effect the reopening of the hotel which earlier suspended its operation due to extreme
businesslosses.Individualmembersofanotherunion,theInsularHotelEmployeesUnionNationalFederationofLabor
(IHEUNFL),petitionerinthiscase,whichclaimedtobeaffiliatedalsowiththesamefederation,questionedthevalidityof
theMOAbyfilingaNoticeofPreventiveMediationwiththeNCMB.
Ontheissueoftheidentityofthedulyrecognizedunion,therespondentcontendedthatitisDIHFEUNFLwhich
istheonlyrecognizedbargainingunitintheirestablishment,theotherunionnamedIHEUNFLbeinganonentitysince,as
certifiedbytheDOLE,itisnotaregisteredlabororganization,Itwasheld,however,thatrespondentisalreadyestopped
from questioning the same as it did not raise the said issue in the proceedings before the NCMB and the Voluntary
Arbitrator.Aperusaloftherecordsrevealedthatthemaintheoryposedbyrespondentwaswhetherornottheindividual
employees had the authority to file the complaint notwithstanding the apparent nonparticipation of the union.
RespondentneverputinissuethefactthatDIHFEUNFLwasnotthesameasIHEUNFL.Consequently,itwasdeclared
alreadytoolateinthedaytoassertthesame.
Resolving the issueraised byrespondentofwhetherthe individual members of IHEUNFL havethe requisite
standingtoquestiontheMOAbeforetheNCMBandtheVoluntaryArbitrator,theSupremeCourt,invokingits2009ruling
inTabigue[supra]andSection3,RuleIVoftheNCMBManualofProcedurewhichprovidesthatonlyacertifiedorduly
recognizedbargainingrepresentativewhichhastherighttofileanoticeorrequestforpreventivemediation,declared
that the individual members of the union have no authority to file the case. Clearly, therefore, the NCMB and the
VoluntaryArbitratorhadnojurisdictiontoentertaintheNoticeofPreventiveMediationandthevoluntaryarbitration
case,respectively.
See also Atlas Farms, Inc. v. NLRC, G.R. No. 142244, Nov. 18, 2002, 440 Phil. 620.
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c.Inordertohavelegalstanding,theindividualmembersshouldbeshowntohavebeendulyauthorizedto
representthebargainingunion.
In the same 2010 case of Insular Hotel, [supra], in order to acquire legal standing to initiate the complaint
(NoticeofPreventiveMediation),theindividualemployeesshouldbeshowntohavebeendulyauthorizedtorepresent
thebargainingunion.Petitionershavenot,however,beendulyauthorizedtorepresenttheunion.
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Tabiguev.InternationalCopraExportCorporation,[G.R.No.183335,December23,2009].
The Supreme Court, however, clarified in this case of Tabigue that an individual employee or group of
employeescannotbeallowedtosubmitorreferunsettledgrievancesforvoluntaryarbitrationwithouttheparticipation
ofthebargainingunion.ThepetitionersinthiscasearemembersofINTERCOEmployees/LaborersUnion(theunion),the
bargainingagentinrespondentcompany.Withouttheparticipationoftheunion,petitionersfiledaNoticeofPreventive
MediationwiththeNCMBagainstrespondentforviolationofCollectiveBargainingAgreement(CBA)andfailuretositon
thegrievanceconference/meeting.AsthepartiesfailedtoreachasettlementbeforetheNCMB,petitionersrequestedto
elevatethecasetovoluntaryarbitration.However,thepresidentoftheunionofwhichpetitionersarememberswrotea
letterstatingthatpetitionersarenotdulyauthorizedby[the]boardortheofficerstorepresenttheunion,[hence]...all
actions,representationsoragreementsmadebythesepeoplewiththemanagementwillnotbehonoredorrecognized
bytheunion.TheSupremeCourtruledthattherightofanyemployeeorgroupofemployeesto,atanytime,present
grievancestotheemployerdoesnotimplytherighttosubmitthesametovoluntaryarbitration.Inthiscase,petitioners
have not been duly authorized to represent the union, hence, they cannot present their unsettled grievances for
voluntaryarbitration.4
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b.Individualemployeeorgroupofemployeescannotbringgrievableissuesforvoluntaryarbitrationwithout
theparticipationofthebargainingunion.
The designation of a bargaining agent, however, does not deprive an individual employee or group of
employeestoexercisetheirrightatanytimetopresentgrievancestotheiremployer,withorwithouttheinterventionof
thebargainingunion.
Article255explicitlyprovidesthatanindividualemployeeorgroupofemployeesmayvalidlybringgrievances
directlytotheemployerevenifthereisanexistingexclusivebargainingrepresentative.


3.INRE:SECONDPARAGRAPHOFARTICLE255:
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ManilaElectricCompanyv.Quisumbing,[G.R.No.127598,Jan.27,1999,302SCRA173,213].
Thegrantofthisrightisnotanintrusionintotheemployersmanagementprerogative.Themandateofthe
Constitution and the law is complied with when, for instance, the union is allowed to have representatives in the
employersSafetyCommittee,UniformCommitteeandothercommitteesofsimilarnature.Certainly,suchparticipation
bytheunioninthesaidcommitteesisnotinthenatureofacomanagementcontrolofthebusinessoftheemployer.
Whatisgrantedthereinisparticipationandrepresentation.Thus,thereisnoimpairmentofmanagementprerogatives.
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b.LaborManagementCouncils.
Under the Rules to Implement the Labor Code, the Department of Labor and Employment is mandated to
promote the formation of labormanagement councils in organized and unorganized establishments to enable the
workers to participate in policy and decisionmaking processes in the establishment, insofar as said processes will
directlyaffecttheirrights,benefitsandwelfare,exceptthosewhicharecoveredbycollectivebargainingagreementsor
aretraditionalareasofbargaining.
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END OF DISCUSSION ON
TOPIC A. FUNDAMENTAL PRINCIPLES AND POLICIES
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d.DistinctionbetweenLaborManagementCouncilandGrievanceCommittee/Machinery.
1. LaborManagement Council is created pursuant to the constitutional right granted to workers to
participateinpolicyanddecisionmakingprocessesoftheestablishmentwheretheyareemployed;while
aGrievanceCommittee/Machineryiscreatedpursuanttotheconstitutionalmandateonthepreferential
useofvoluntarymodesinsettlinglabordisputes;
2. LaborManagementCouncilismoreofapreventivemeasure;whileaGrievanceCommittee/Machineryis
necessarywhenthereisalreadytheoccurrenceofagrievanceripeforadjudication;
3. LaborManagementCouncilhasnoadjudicatorypower;whileaGrievanceCommittee/Machineryhasthe
powertoadjudicateandresolvegrievances.
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c.Selectionofrepresentativestolabormanagementcommitteesorcouncils.
Inorganizedestablishments,theworkersrepresentativestothecommitteeorcouncilshouldbenominated
by the exclusive bargaining representative. In establishments where no legitimate labor organization exists, the
workersrepresentativeshouldbeelecteddirectlybytheemployeesatlarge.
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a.ParticipationinPolicyandDecisionMakingProcesses.
Although the law sets the standard that the participation of the workers in the policy and decisionmaking
processesoftheemployerislimitedtopoliciesanddecisionswhichaffecttheirrights,benefitsandwelfare,thereexists
aquestionontheextentofsuchparticipationthatmaybeaffordedtotheworkersinthesaidprocesses.Thediscussion
of the 1986 Constitutional Commission on the provision granting this right which was ultimately enshrined and
designatedasSection3,par.2,ArticleXIII,[SocialJusticeandHumanRights]ofthe1987Constitution,indicatesthatitis
only in the area of grievance procedures and voluntary modes of settling disputes, and not in the area of corporate
planning,chartingofcorporatebusiness,modesandproceduresofcorporatemanagementandacquisitionofproperty,
whereworkersmayparticipate.


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ChanRobles Internet Bar Review : ChanRobles Professional Review, Inc.

Prof. Joselito Guianan Chan