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b LABOR RELATIONS LAW
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ri A. INTRODUCTION Labor Relations Law vs. Labor Standards
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1. Constitutional basis Labor Relations Labor Standards
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a a. Sections 10 & 18, Article II, 1987 a. Regulates the institutional a. Deals with minimum
Constitution relationship between the standards as wages, hours of
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w workers organized into a work and other terms and
Section 10. The State shall promote social justice in all phases of union and the employers, conditions of employment.
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2 national development. either standing alone or with
other employer's association.
A Section 18. The State affirms labor as a primary social economic
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2 force. It shall protect the rights of workers and promote their b. Deals with the legal control b. Provides the minimum of
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0 welfare. of the employer-employee what society feels is
relations to the end that necessary to maintain the
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1 disputes concerning terms helath, safety and decent
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0 b. Section 3, Article XIII, 1987 and conditions of employment living of employees.
-b Constitution will be served by collective
bargaining.
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ARTICLE XIII
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LABOR
Section 3. The State shall afford full protection to labor, local and
-p overseas, organized and unorganized, and promote full 3. Goal of Labor Relations
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D employment and equality of employment opportunities for all.
i It shall guarantee the rights of all workers to self-organization,
Social Justice
The case of Calalang vs Williams is known
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s collective bargaining and negotiations, and peaceful concerted for the elegant exposition of the definition of social justice. In
ic activities, including the right to strike in accordance with law. They this case, Justice Laurel defined social justice as “neither
shall be entitled to security of tenure, humane conditions of work,
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n and a living wage. They shall also participate in policy and
communism, nor despotism, nor atomism, nor anarchy” but
humanization of laws and equalization of social and economic
ip decision-making processes affecting their rights and benefits as forces by the State so that justice in its rational and objectively
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d may be provided by law. secular conception may at least be approximated.
e The State shall promote the principle of shared responsibility
between workers and employers and the preferential use of
t, voluntary modes in settling disputes, including conciliation, and Protection to Labor
e shall enforce their mutual compliance therewith to foster industrial
rj peace. Antamok Goldfields Mining Co. vs. CIR 70 Phil 340
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m The State shall regulate the relations between workers and "The promotion of social justice to insure the well-
ir employers, recognizing the right of labor to its just share in the being and economic security of all the people' was thus
fruits of production and the right of enterprises to reasonable inserted as vital principle in our Constitution. (Sec. 5, Art. II,
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n returns to investments, and to expansion and growth. Constitution.) And in order that this declaration of principle may
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e not just be an empty medley of words, the Constitution in
d various sections thereof has provided the means towards its
realization. For instance, section 6 of Articles XIII declares that
i 2. Concept the State "shall afford protection to labor, especially to working
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b women and minors, and shall regulated the relations between
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y Labor Relations Law landowner and tenant, and between labor and capital in
− it deals with the legal control of the employer- industry and in agriculture." The same section also states that
i employee relations to the end view that disputes "the State may provide for compulsory arbitration."
to concerning terms and conditions od employnebt will
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h be served by collective bargaining.
4. Construction and/or Interpretion
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o Labor Relations Eastern Shipping Lines vs. POEA 166 SCRA 523
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a − it defines the status, rights, duties, and the
institutional mechanisms that govern his individual Whatever doubts may still remain regarding the rights
le and collective interactions between employer, of the parties in this case are resolved in favor of the private
lr employees and their representatives. (CA Azucena) respondent, in line with the express mandate of the Labor Code
e and the principle that those with less in life should have more in
law.
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LABOR RELATIONS LAW
When the conflicting interests of labor and capital are
weighed on the scales of social justice, the heavier influence of
the latter must be counter-balanced by the sympathy and
compassion the law must accord the underprivileged worker. This
is only fair if he is to be given the opportunity and the right to
assert and defend his cause not as a subordinate but as a peer
of management, with which he can negotiate on even plane.
Labor is not a mere employee of capital but its active and equal
partner.
Meralco vs. NLRC GR 78763
In carrying out and interpreting the Labor Code's
provisions and its implementing regulations, the workingman's
welfare should be the primordial and paramount consideration.
This kind of interpretation gives meaning and substance to the
liberal and compassionate spirit of the law as provided for in
Article 4 of the New Labor Code which states that "all doubts in
the implementation and interpretation of the provisions of the
Labor Code including its implementing rules and regulations shall
be resolved in favor of labor" (Abella v. NLRC, G.R. No. 71812,
July 30,1987,152 SCRA 140).
Colgate Palmolive Phils. vs. Ople GR. 73681
The Constitutional mandate that the State shall "assure
the rights of the workers to self-organization, collective
bargaining, security of tenure and just and humane conditions of
work," should be achieved under a system of law... When an
overzealous official by-passes the law on the pretext of retaining
a laudable objective, the intendment or purpose of the law will
lose its meaning as the law itself is disregarded.
Under the law, respondent Minister is duly mandated to
equally protect and respect not only the labor or workers' side but
also the management and/or employers' side. The law, in
protecting the rights of the laborer, authorizes neither oppression
nor self-destruction of the employer.
5. Economic Basis of Labor Relations
a. Interests of Management
Management Prerogative
− may be taken as the freedom to administer the
affairs of a business enterprise such that the
costs of running it would be below the expected
earnings or receipts. In short, the ELBOW
ROOM IN THE QUEST FOR PROFITS (Chu
vs. NLRC GR 106107)
Limitation: the Company's prerogatives must
be exercised in GOD FAITH and with due regard to the rights of
labor. A priori, they are not absolute prerogatives but are subject
to legal limits, collective bargaining agreements, and the general
principles of fair play and justice (Phil-Sing Transit vs. NLRC)
 see Sec. 3, Art XIII, 1987 Constitution
University of Immaculate Concepcion, Inc.
vs. Sec. Of labor GR 151379
This Court declared that it recognizes the exercise
of management prerogatives and it often declines to
interfere with the legitimate business decisions of the
employer.
This is in keeping with the general principle
embodied in Article XIII, Section 3 of the Constitution,
which is further echoed in Article 211 of the Labor Code.
However, as expressed in PAL v. National Labor
Relations Commission, this privilege is not absolute, but
subject to exceptions. One of these exceptions is when
the Secretary of Labor assumes jurisdiction over labor
disputes involving industries indispensable to the
national interest under Article 263(g) of the Labor Code.
This provision states:
(g) When, in his opinion, there exists a labor dispute
causing or likely to cause a strike or lockout in an industry
indispensable to the national interest, the Secretary of Labor
and Employment may assume jurisdiction over the dispute and
decide it or certify the same to the Commission for compulsory
arbitration. Such assumption or certification shall have the
effect of automatically enjoining the intended or impending
strike or lockout as specified in the assumption or certification
order. If one has already taken place at the time of assumption
or certification, all striking or locked out employees shall
immediately return to work and the employer shall immediately
resume operations and readmit all workers under the same
terms and conditions prevailing before the strike or lockout. x x
x
b. Interests of Labor
Seven Cardinal Rights of Workers
1. rights to organize
2. to conduct collective bargaining or negotiation with
management
3. to engage in peaceful concerted activities, including
strike in accordance with law
4. to enjoy security of tenure
5. to work under humane conditions
6. to receive a living wage
7. to participate in policy and decision-making
processes affecting their rights and benefits as may
be provided by law. (Sec. 3, Art. XIII)
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c. Balancing of interests thru regulation
by the State of labor relations law
(police power)
The State shall regulate the relations between
workers and employers, recognizing the right of labor to its just
share in the fruits of production and the right of enterprises to
reasonable returns to investments, and to expansion and growth.
(sec. 4, par.4, Art. XIII, 1987 Constitution).
B. State Policies on Labor Relations
1. Method of Dispute Settlement
 see Sec. 3, Art XIII, 1987 Constitution
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.
XXX
Kiok Loy vs. NLRC, 141 SCRA 179
Collective bargaining which is defined as negotiations towards a
collective agreement, one of the democratic frameworks under
the New Labor Code, designed to stabilize the relation between
labor and management and to create a climate of sound and
stable industrial peace. It is a mutual responsibility of the
employer and the Union and is characterized as a legal
obligation.
So much so that Article 249, par. (g) of the Labor Code
makes it an unfair labor practice for an employer to refuse "to
meet and convene promptly and expeditiously in good faith for
the purpose of negotiating an agreement with respect to wages,
hours of work, and all other terms and conditions of employment
including proposals for adjusting any grievance or question
arising under such an agreement and executing a contract
incorporating such agreement, if requested by either party.
While it is a mutual obligation of the parties to bargain,
the employer, however, is not under any legal duty to initiate
contract negotiation. The mechanics of collective bargaining is
set in motion only when the following jurisdictional preconditions
are present, namely, (1) possession of the status of majority
representation of the employees' representative in accordance
with any of the means of selection or designation provided for by
the Labor Code; (2) proof of majority representation; and (3) a
demand to bargain under Article 251, par. (a) of the New Labor
Code . ...
Manila Diamond Hotel Employees’ Union vs.
The Hon. Court of Appeals, The Secretary of Labor and
Employment, and The Manila Diamond Hotel
G.R. No. 140518,
As a general rule, the State encourages an environment
wherein employers and employees themselves must deal with
their problems in a manner that mutually suits them best. This
is the basic policy embodied in Article XIII, Section 3 of the
Constitution,which was further echoed in Article 211 of the
Labor Code. Hence, a voluntary, instead of compulsory, mode
of dispute settlement is the general rule.
However, Article 263, paragraph (g) of the Labor
Code, which allows the Secretary of Labor to assume
jurisdiction over a labor dispute involving an industry
indispensable to the national interest, provides an exception:
(g) When, in his opinion, there exists a labor
dispute causing or likely to cause a strike or
lockout in an industry indispensable to the
national interest, the Secretary of Labor and
Employment may assume jurisdiction over the
dispute and decide it or certify the same to the
Commission for compulsory arbitration. Such
assumption or certification shall have the effect of
automatically enjoining the intended or impending
strike or lockout as specified in the assumption or
certification order. If one has already taken place
at the time of assumption or certification, all
striking or locked out employees shall
immediately return to work and the employer shall
immediately resume operations and readmit all
workers under the same terms and conditions
prevailing before the strike or lockout.
2. Trade Unionism
Art. 211. Declaration of Policy.
It is the policy of the State:
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;
Art. 212. Definitions.
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.
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LABOR RELATIONS LAW
Definition of Trade Union Activities
Art. 270. Regulation of foreign assistance.
a. No foreign individual, organization or entity may give any
donations, grants or other forms of assistance, in cash
or in kind, directly or indirectly, to any labor organization,
group of workers or any auxiliary thereof, such as
cooperatives, credit unions and institutions engaged in
research, education or communication, in relation to
trade union activities, without prior permission by the
Secretary of Labor.
"Trade union activities" shall mean:
1. organization, formation and administration of
labor organization;
2. negotiation and administration of collective
bargaining agreements;
3. all forms of concerted union action;
4. organizing, managing, or assisting union
conventions, meetings, rallies, referenda,
teach-ins, seminars, conferences and institutes;
5. any form of participation or involvement in
representation proceedings, representation
elections, consent elections, union elections;
and
6. other activities or actions analogous to the
foregoing.
3. Worker Enlightenment
Art. 211. Declaration of Policy.
A. It is the policy of the State:
d.) To promote the enlightenment of workers concerning
their rights and obligations as union members and as
employees.
Chapter II
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:
p.) 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, collective bargaining
agreement, the prevailing labor relations system and all
their rights and obligations under existing labor laws.
Art. 277. Miscellaneous provisions.
a.) All unions are authorized to collect reasonable
membership fees, union dues, assessments and fines
and other contributions for labor education and research,
mutual death and hospitalization benefits, welfare fund,
strike fund and credit and cooperative undertakings.
(As amended by Section 33, Republic Act No. 6715,
March 21, 1989)
Victoria vs. Inciong, 157 SCRA 339
The purpose in requiring a prior clearance from the Secretary of
Labor in cases of shutdown or dismissal of employees, is to
afford the Secretary ample opportunity to examine and
determine the reasonableness of the request.
Consequently,private respondent acted in good faith when it
terminated the employment of petitioner upon a declaration of
illegality of the strike.
Ratio
This is a matter of responsibility and of answerability. Petitioner
as a union leader, must see to it that the policies and activities
of the union in the conduct of labor relations are within the
precepts of law and any deviation from the legal
boundariesshall be imputable to the leader. He bears the
responsibility ofguiding the union along the path of law and to
cause the unionto demand what is not legally demandable,
would fomentanarchy which is a prelude to chaos.
Reasoning
As a strike is an economic weapon at war with the policy of the
Constitution and the law at that time, a resortthereto by laborers
shall be deemed to be a choice of remedypeculiarly their own
and outside of the statute, and as such, thestrikers must accept
all the risks attendant upon their choice. Ifthey succeed and the
employer succumbs, the law will not standin their way in the
enjoyment of the lawful fruits of their victory.But if they fail, they
cannot thereafter invoke the protection ofthe law for the
consequences of their conduct unless the rightthey wished
vindicated is one which the law will, by all means,protect and
enforce.
4. Adequate machinery for Expeditious Dispute
Settlement
Art. 211. Declaration of Policy.
A. It is the policy of the State:
e.) To provide an adequate administrative
machinery for the expeditious settlement of labor
or industrial disputes.
Art. 212. Definitions.
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 the Bureau of Labor
Relations and/or the Labor Relations
Divisions 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.
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LABOR RELATIONS LAW
d. "Council" means the Tripartite Voluntary
Arbitration Advisory Council established under
Executive Order No. 126, as amended.
I. NLRC; Labor Arbiters
Art. 212. Definitions.
a. "Commission" means the National Labor Relations
Commission or any of its divisions, as the case may be,
as provided under this Code.
NATIONAL LABOR RELATIONS COMMISSION
Chapter I
CREATION AND COMPOSITION
Art. 213. National Labor Relations
Commission. There shall be a National Labor Relations
Commission which shall be attached to the Department of Labor
and Employment for program and policy coordination only,
composed of a Chairman and fourteen (14) Members.
Five (5) members each shall be chosen from among the
nominees of the workers and employers organizations,
respectively. The Chairman and the four (4) remaining members
shall come from the public sector, with the latter to be chosen
from among the recommendees of the Secretary of Labor and
Employment.
Upon assumption into office, the members nominated by the
workers and employers organizations shall divest themselves of
any affiliation with or interest in the federation or association to
which they belong.
The Commission may sit en banc or in five (5) divisions, each
composed of three (3) members. Subject to the penultimate
sentence of this paragraph, the Commission shall sit en banc
only for purposes of promulgating rules and regulations
governing the hearing and disposition of cases before any of its
divisions and regional branches, and formulating policies
affecting its administration and operations. The Commission shall
exercise its adjudicatory and all other powers, functions, and
duties through its divisions. Of the five (5) divisions, the first,
second and third divisions shall handle cases coming from the
National Capital Region and the parts of Luzon; and the fourth
and fifth divisions, cases from the Visayas and Mindanao,
respectively; Provided that the Commission sitting en banc may,
on temporary or emergency basis, allow cases within the
jurisdiction of any division to be heard and decided by any other
division whose docket allows the additional workload and such
transfer will not expose litigants to unnecessary additional
expense. The divisions of the Commission shall have exclusive
appellate jurisdiction over cases within their respective territorial
jurisdictions. [As amended by Republic Act No. 7700].
The concurrence of two (2) Commissioners of a division shall be
necessary for the pronouncement of judgment or resolution.
Whenever the required membership in a division is not complete
and the concurrence of two (2) commissioners to arrive at a
judgment or resolution cannot be obtained, the Chairman shall
designate such number of additional Commissioners from the
other divisions as may be necessary.
The conclusions of a division on any case submitted to it for
decision shall be reached in consultation before the case is
assigned to a member for the writing of the opinion. It shall be
mandatory for the division to meet for purposes of the
consultation ordained herein. A certification to this effect signed
by the Presiding Commissioner of the division shall be issued
and a copy thereof attached to the record of the case and
served upon the parties.
The Chairman shall be the Presiding Commissioner of the first
division and the four (4) other members from the public sector
shall be the Presiding Commissioners of the second, third,
fourth and fifth divisions, respectively. In case of the effective
absence or incapacity of the Chairman, the Presiding
Commissioner of the second division shall be the Acting
Chairman.
The Chairman, aided by the Executive Clerk of the
Commission, shall have administrative supervision over the
Commission and its regional branches and all its personnel,
including the Executive Labor Arbiters and Labor Arbiters.
The Commission, when sitting en banc shall be assisted by the
same Executive Clerk and, when acting thru its Divisions, by
said Executive Clerks for the second, third, fourth and fifth
Divisions, respectively, in the performance of such similar or
equivalent functions and duties as are discharged by the Clerk
of Court and Deputy Clerks of Court of the Court of
Appeals. (As amended by Section 5, Republic Act No. 6715,
March 21, 1989)
Chapter II
POWERS AND DUTIES
Art. 217. Jurisdiction of the Labor Arbiters and the
Commission.
a. Except as otherwise provided under this Code, the
Labor Arbiters shall have original and exclusive
jurisdiction to hear and decide, within thirty (30)
calendar days after the submission of the case by the
parties for decision without extension, even in the
absence of stenographic notes, the following cases
involving all workers, whether agricultural or non-
agricultural:
1. Unfair labor practice cases;
2. Termination disputes;
3. If accompanied with a claim for reinstatement,
those cases that workers may file involving
wages, rates of pay, hours of work and other
terms and conditions of employment;
4. Claims for actual, moral, exemplary and other
forms of damages arising from the employer-
employee relations;
5. Cases arising from any violation of Article 264
of this Code, including questions involving the
legality of strikes and lockouts; and
6. Except claims for Employees Compensation,
Social Security, Medicare and maternity
benefits, all other claims arising from
employer-employee relations, including those
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LABOR RELATIONS LAW
of persons in domestic or household service,
involving an amount exceeding five thousand
pesos (P5,000.00) regardless of whether
accompanied with a claim for reinstatement.
b. The Commission shall have exclusive appellate
jurisdiction over all cases decided by Labor Arbiters.
c. Cases arising from the interpretation or implementation
of collective bargaining agreements and those arising
from the interpretation or enforcement of company
personnel policies shall be disposed of by the Labor
Arbiter by referring the same to the grievance machinery
and voluntary arbitration as may be provided in said
agreements. (As amended by Section 9, Republic Act
No. 6715, March 21, 1989)
II. National Conciliation Mediation Board
Art. 212. Definitions.
a. "Board" means the National Conciliation and Mediation
Board established under Executive Order No. 126.
Title VII
COLLECTIVE BARGAINING AND ADMINISTRATION
OF AGREEMENTS
Art. 250. Procedure in collective bargaining. The
following procedures shall be observed in collective
bargaining:
c.) If the dispute is not settled, the Board shall intervene
upon request of either or both parties or at its own
initiative and immediately call the parties to conciliation
meetings. The Board shall have the power to issue
subpoenas requiring the attendance of the parties to
such meetings. It shall be the duty of the parties to
participate fully and promptly in the conciliation meetings
the Board may call;
d.) During the conciliation proceedings in the Board, the
parties are prohibited from doing any act which may
disrupt or impede the early settlement of the disputes;
and
e.) The Board shall exert all efforts to settle disputes
amicably and encourage the parties to submit their case
to a voluntary arbitrator. (As amended by Section 20,
Republic Act No. 6715, March 21, 1989)
III. Bureau of labor relations; Labor Relations
Division
Art. 212. Definitions.
a. "Bureau" means the Bureau of Labor Relations and/or
the Labor Relations Divisions in the regional offices
established under Presidential Decree No. 1, in the
Department of Labor.
Title III
BUREAU OF LABOR RELATIONS
Art. 226. Bureau of Labor Relations. The Bureau of
Labor Relations and the Labor Relations Divisions in the
regional offices of the Department of Labor, shall have original
and exclusive authority to act, at their own initiative or upon
request of either or both parties, on all inter-union and intra-
union conflicts, and all disputes, grievances or problems arising
from or affecting labor-management relations in all workplaces,
whether agricultural or non-agricultural, except those arising
from the implementation or interpretation of collective
bargaining agreements which shall be the subject of grievance
procedure and/or voluntary arbitration.
The Bureau shall have fifteen (15) working days to act on labor
cases before it, subject to extension by agreement of the
parties. (As amended by Section 14, Republic Act No. 6715,
March 21, 1989).
IV. Voluntary Arbitration Advisory Council
Art. 212. Definitions.
a. "Commission" means the National Labor Relations
Commission or any of its divisions, as the case may
be, as provided under this Code.
Title VII-A
GRIEVANCE MACHINERY AND VOLUNTARY
ARBITRATION
Art. 260. Grievance machinery and voluntary
arbitration. The parties to a Collective Bargaining Agreement
shall include therein provisions that will ensure the mutual
observance of its terms and conditions. They shall establish a
machinery for the adjustment and resolution of grievances
arising from the interpretation or implementation of their
Collective Bargaining Agreement and those arising from the
interpretation or enforcement of company personnel policies.
All grievances submitted to the grievance machinery which are
not settled within seven (7) calendar days from the date of its
submission shall automatically be referred to voluntary
arbitration prescribed in the Collective Bargaining Agreement.
For this purpose, parties to a Collective Bargaining Agreement
shall name and designate in advance a Voluntary Arbitrator or
panel of Voluntary Arbitrators, or include in the agreement a
procedure for the selection of such Voluntary Arbitrator or panel
of Voluntary Arbitrators, preferably from the listing of qualified
Voluntary Arbitrators duly accredited by the Board. In case the
parties fail to select a Voluntary Arbitrator or panel of Voluntary
Arbitrators, the Board shall designate the Voluntary Arbitrator or
panel of Voluntary Arbitrators, as may be necessary, pursuant
to the selection procedure agreed upon in the Collective
Bargaining Agreement, which shall act with the same force and
effect as if the Arbitrator or panel of Arbitrators has been
selected by the parties as described above.
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LABOR RELATIONS LAW
Art. 261. Jurisdiction of Voluntary Arbitrators or
panel of Voluntary Arbitrators. The Voluntary Arbitrator or panel
of Voluntary Arbitrators shall have original and exclusive
jurisdiction to hear and decide all unresolved grievances arising
from the interpretation or implementation of the Collective
Bargaining Agreement and those arising from the interpretation or
enforcement of company personnel policies referred to in the
immediately preceding article. Accordingly, violations of a
Collective Bargaining Agreement, except those which are gross in
character, shall no longer be treated as unfair labor practice and
shall be resolved as grievances under the Collective Bargaining
Agreement. For purposes of this article, gross violations of
Collective Bargaining Agreement shall mean flagrant and/or
malicious refusal to comply with the economic provisions of such
agreement.
The Commission, its Regional Offices and the Regional Directors
of the Department of Labor and Employment shall not entertain
disputes, grievances or matters under the exclusive and original
jurisdiction of the Voluntary Arbitrator or panel of Voluntary
Arbitrators and shall immediately dispose and refer the same to
the Grievance Machinery or Voluntary Arbitration provided in the
Collective Bargaining Agreement.
Art. 262. Jurisdiction over other labor disputes. The Voluntary
Arbitrator or panel of Voluntary Arbitrators, upon agreement of the
parties, shall also hear and decide all other labor disputes
including unfair labor practices and bargaining deadlocks.
V. Administrative Intervention for Dispute
Avoidance *DOLE Circular No. 1, Series of
2006)
D.O.L.E. CIRCULAR No. 1
Series of 2006
ADMINISTRATIVE INTERVENTION FOR DISPUTE AVOIDANCE
In line with the objectives of the Republic Act No. 9285, Executive
Order No. 523 dated 07 April 2006, and the mandate of the
Department of Labor and Employment to promote industrial
peace, this administrative procedure for the voluntary settlement
of labor disputes is hereby established.
1. Either or both the employer and the certified collective
bargaining agent (or the representative of the employees where
there is no certified bargaining agent) may voluntarily bring to the
Office of the Secretary of Labor and Employment, through a
REQUEST FOR INTERVENTION, any potential or ongoing
dispute defined below.
A potential or ongoing dispute refers to:
a. a live and active dispute;
b. that may lead to a strike or lockout or to massive labor unrest;
and
c. is not the subject of any complaint or notice of strike or lockout
at the time a REQUEST FOR INTERVENTION is made.
This recourse is separate from the established dispute resolution
modes of mediation, conciliation and arbitration under the Labor
Code, and is an alternative to other voluntary modes of dispute
resolution such as the voluntary submission of a dispute to the
Regional Director for mediation, to the National Conciliation and
Mediation Board (NCMB) for preventive mediation, or to the
intervention of a regional or local tripartite peace council for the
same purpose.
2. All REQUESTS shall be in writing and filed with the Office of
the Secretary. A REQUEST shall state:
a. the name and address of the employer;
b. the name of the certified bargaining agent, or the employee
representative duly designated in writing by a majority of the
employees where there is no collective bargaining agent;
c. the number of employees affected by the potential or
ongoing dispute; and
d. a brief description of the potential or ongoing dispute.
3. Upon receipt of the REQUEST, the Office of the Secretary
shall forthwith notify the parties and invite them for conference.
The conference for REQUESTS coming from the National
Capital Region, Regions III, IV-A or IV-B shall be held at the
Office of the Secretary of Labor and Employment unless the
Secretary otherwise directs. The conference for REQUESTS
coming from the other regions shall be conducted by the
Regional Director for the Secretary.
4. The Office of the Secretary or the Regional director, in the
proper case, shall proceed to intervene after the parties shall
have manifested that;
a. they voluntarily submit their potential or ongoing dispute to
intervention by the Office of the Secretary of Labor and
Employment;
b. there is no pending notice of strike or lockout or any related
complaint in relation with their potential or ongoing dispute;
c. they shall refrain from any strike or lockout or any form of
work stoppage or from filing any related complaint while the
Secretary's intervention is in effect; and
d. they shall abide by the agreement reached, whose terms
may be enforced through the appropriate writs issued by the
Secretary of Labor and Employment.
All agreements settling the dispute shall be in writing and
signed by the parties as well as the official who mediated the
dispute.
5. The parties and officials or employees of the Department of
Labor and Employment who took part in the intervention
proceedings shall not testify in any court or body regarding the
disclosures, submissions or positions made by the parties in
these proceedings.
6. If the intervention fails, either or both parties may avail
themselves of the remedies provided under the Labor Code.
Alternatively, the parties may submit their dispute to the Office
of the Secretary for voluntary arbitration.
Such voluntary arbitration shall be limited to the issues defined
in the parties' submission to voluntary arbitration agreement
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and shall be decided on the basis of the parties' position papers
and submitted evidence.
The Office of the Secretary shall resolve the dispute within sixty
(60) days from the parties' submission of the dispute for
resolution.
7. This circular shall take effect fifteen (15) days after publication
in a newspaper of general publication.
Done in the City of Manila, Philippines, 11 August 2006.
St. Martins Funeral Homes vs. NLRC, 295 SCRA 494
All references in the amended Section 9 of BP No. 129 to
supposed appeals from the NLRC to the Supreme Court are
interpreted and declared to mean and refer to petitions for
certiorari under Rule 65.
Therefore, all such petitions should be initially filedin the CA in
strict observance of the doctrine on thehierarchy of courts.
*** The Supreme Court issued a ruling that effectively
revised the procedure of appeals from decisions of the NLRC.
In its decision, the High Court cited the provision of the
Judiciary Reorganization Act of 1980 (Sec. 9 BP No. 129), as
amended by Rep. Act 7902 deleting the exclusion of the Labor
Code from the jurisdiction of the Court of Appeals, and granting
that Court limited powers to conduct trials and hearings in cases
within its jurisdiction.
This exclusion of the Labor Code was reworded into
"except those falling within the appellate jurisdiction of the
Supreme Coup in accordance with the Constitution, the Labor
Code x x x" But the High Court pointed out that there are no
cases in the Labor Code wherein the decisions are within the
appellate jurisdiction of the Supreme Court, or of any court for
that matter.
It also noted, upon a review of the pertinent legislative
records, that it was the intendment of Congress to reduce the
workload of the Supreme Court without depriving litigants of the
privilege of review by an appellate tribunal. Accordingly, the
Supreme Court held that all references in the amended Sec.
9ofBP 129 to supposed appeals (the term was described as a
"lapsus plumage"- a slip of the pen) from the NLRC to the
Supreme Court should be interpreted and declared to mean and
refer to petitions for certiorari under Rule 65, RC.
It mentioned, In passing, that the special civil action of
certiorari is within the concurrent original jurisdiction of the
Supreme Court and Court of Appeals. Thus, the Supreme Court
ordered that all such petitions should henceforth be initially filed
in the Court of Appeals, In strict observance of the doctrine on the
hierarchy of courts as the appropriate forum for the relief desired.
(St. Martin Funeral Homes vs.NLRC, 295 SCRA 494).
The above-cited doctrine on hierarchy of courts means
that a litigant cannot seek relief directly from the Supreme Court
where the same is available in the lower courts in the exercise of
their original or concurrent jurisdiction, or is even mandated by
law to be sought therein. (Santiago vs. Vasquez et al, 278 SCRA
155) While this corrected procedure adds another level to the
resolution of labor disputes, the Supreme Court noted that it
offers litigants the advantage to have all the evidence on record
reexamined and reweighed by a fact- finding Court with its
increased component divisions, and correspondingly affirmed,
modified or reversed.
For its part, the NLRC has since stressed recourse to
the voluntary modes of resolving labor disputes, including
mediation and conciliation, to ensure expeditious action in labor
cases, and to give meaning to the express constitutional
preference for the use of voluntary modes in settling industrial
disputes (Art. XIII, Sec. 3, Const.) PROCEEDINGS IN
VOLUNTARY ARBITRATION.
The Military Arbitrator or panel of Voluntary Arbitrators
has the power to hold hearings, receive evidences and take
whatever action is necessary to resolve the issue or issues
subject of the dispute, including efforts to effect a voluntary
settlement between the parties.
All parties to the dispute are entitled to attend the
arbitration proceedings. The attendance of any third party or
the exclusion of any witness from the proceedings shall be
determined by the Voluntary Arbitrator or panel. Hearings may
be adjourned for cause or upon agreement by the parties.
Unless the parties agree otherwise, it is mandatory for the
Voluntary Arbitrator or Arbitration panel to render an award or
decision within 20 calendar days from the date of submission of
the dispute to voluntary arbitration.
Delta Ventures, etc. vs. Cabato, 327 SCRA 521
Basic as a hornbook principle, jurisdiction over the
subject matter of a case if conferred by law and detrermined by
the allegations in the complaint which comprise a concise
statement of the ultimate facts constitutingthe petitioner's cause
of action.
Ostensibly the complaint before the trial court was for
the recovery of possession and injunction,but in essence it was
an action challenging the legality or propriety of the levy vis-a-
vis the alias writ of execution,including the acts performed by
the Labor Arbiter and the Deputy Sheriff implementing the writ.
The complaint was ineffect a motion to quash the writ
of execution of a decision rendered on a case properly within
the jurisdiction of the Labor Arbiter, to wit: Illegal Dismissal and
Unfair Labor Practice.Considering the factual setting, it is then
logical to conclude thatthe subject matter of the third party
claim is but an incident ofthe labor case, a matter beyond the
jurisdiction of regional trialcourts.
Precedent abound confirming the rule that said courts
have nojurisdiction to act on labor cases or various incidents
arisingtherefrom, including the execution of decisions, awards
ororders. Jurisdiction to try and adjudicate such cases pertains
exclusively to the proper labor official concerned under
theDepartment of Labor and Employment. To hold otherwise is
tosanction split jurisdiction which is obnoxious to the
orderlyadministration of justice.
The broad powers granted to the Labor Arbiter and to
theNational Labor Relations Commission by Articles 217, 218
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LABOR RELATIONS LAW
and224 of the Labor Code can only be interpreted as vesting in
themjurisdiction over incidents arising from, in connection with
orrelating to labor disputes, as the controversy
underconsideration, to the exclusion of the regular courts.
Having established that jurisdiction over the case rests
with theCommission, we find no grave abuse of discretion on the
part ofrespondent Judge Cabato in denying petitioner's motion for
theissuance of an injunction against the execution of the decision
ofthe National Labor Relations Commission.
5. Industrial Peace
Art. 211. Declaration of Policy.
A. It is the policy of the State:
f.) To ensure a stable but dynamic and just industrial
peace
 see Sec. 3, Art XIII, 1987 Constitution
6. Worker's Participation in Decision-Making and
Policy-Making Processes Affecting Rights. Duties
and Welfare
Philippine Airlines vs, NLRC, 225 SCRA 301
Employees have a right to participate in the deliberation
of matters which may affect their rights and the formulation of
policies relative thereto and one such matter is the formulation of
a code of discipline.
Meralco Electric vs. Quisumbing, 326 SCRA 172
Ratio
(On the requirement of consultation imposed by the Secretary in
cases of contracting out for 6 months or more) A line must be
drawn between management prerogatives regarding business
operations per se and those which affect the rights of employees,
and in treating the latter, the employer should see to it that its
employees are at least properly informed of its decision or modes
of action in order to attain a harmonious labor-management
relationship and enlighten the workers concerning their rights.
Hiring of workers is within the employer's inherent freedom to
regulate and is a valid exercise of its managementprerogative
subject only to special laws and agreements onthe matter and
the fair standards of justice.
Reasoning The management cannot be denied the faculty of
promoting efficiency and attaining economy by a study of what
units are essential for its operation. It has the ultimate
determination of whether services should be performed by its
personnel or contracted to outside agencies. Absent proof that
management acted in a malicious or arbitrary manner, the Court
will not interfere with the exercise of judgment by an employer.
7. Wage Fixing
Art. 211. Declaration of Policy.
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 or
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. (As amended by
Section 3, Republic Act No. 6715, March 21, 1989)
Chapter I
STRIKES AND LOCKOUTS
Art. 263. Strikes, picketing and lockouts.
g.) When, in his opinion, there exists a labor dispute
causing or likely to cause a strike or lockout in an
industry indispensable to the national interest, the
Secretary of Labor and Employment may assume
jurisdiction over the dispute and decide it or certify the
same to the Commission for compulsory arbitration.
Such assumption or certification shall have the effect
of automatically enjoining the intended or impending
strike or lockout as specified in the assumption or
certification order. If one has already taken place at
the time of assumption or certification, all striking or
locked out employees shall immediately return-to-work
and the employer shall immediately resume operations
and readmit all workers under the same terms and
conditions prevailing before the strike or lockout. The
Secretary of Labor and Employment or the
Commission may seek the assistance of law
enforcement agencies to ensure compliance with this
provision as well as with such orders as he may issue
to enforce the same.
In line with the national concern for and the highest
respect accorded to the right of patients to life and
health, strikes and lockouts in hospitals, clinics and
similar medical institutions shall, to every extent
possible, be avoided, and all serious efforts, not only
by labor and management but government as well, be
exhausted to substantially minimize, if not prevent,
their adverse effects on such life and health, through
the exercise, however legitimate, by labor of its right to
strike and by management to lockout. In labor disputes
adversely affecting the continued operation of such
hospitals, clinics or medical institutions, it shall be the
duty of the striking union or locking-out employer to
provide and maintain an effective skeletal workforce of
medical and other health personnel, whose movement
and services shall be unhampered and unrestricted,
as are necessary to insure the proper and adequate
protection of the life and health of its patients, most
especially emergency cases, for the duration of the
strike or lockout. In such cases, therefore, the
Secretary of Labor and Employment may immediately
assume, within twenty four (24) hours from knowledge
of the occurrence of such a strike or lockout,
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LABOR RELATIONS LAW
jurisdiction over the same or certify it to the Commission
for compulsory arbitration. For this purpose, the
contending parties are strictly enjoined to comply with
such orders, prohibitions and/or injunctions as are
issued by the Secretary of Labor and Employment or the
Commission, under pain of immediate disciplinary
action, including dismissal or loss of employment status
or payment by the locking-out employer of backwages,
damages and other affirmative relief, even criminal
prosecution against either or both of them.
The foregoing notwithstanding, the President of the
Philippines shall not be precluded from determining the
industries that, in his opinion, are indispensable to the
national interest, and from intervening at any time and
assuming jurisdiction over any such labor dispute in
order to settle or terminate the same.
Chapter II
MINIMUM WAGE RATES
Art. 99. Regional minimum wages. The minimum wage rates
for agricultural and non-agricultural employees and workers in
each and every region of the country shall be those prescribed by
the Regional Tripartite Wages and Productivity Boards. (As
amended by Section 3, Republic Act No. 6727, June 9, 1989).
Art. 124. Standards/Criteria for minimum wage fixing. The
regional minimum wages to be established by the Regional
Board shall be as nearly adequate as is economically feasible to
maintain the minimum standards of living necessary for the
health, efficiency and general well-being of the employees within
the framework of the national economic and social development
program. In the determination of such regional minimum wages,
the Regional Board shall, among other relevant factors, consider
the following:
a. The demand for living wages;
b. Wage adjustment vis-à-vis the consumer price index;
c. The cost of living and changes or increases therein;
d. The needs of workers and their families;
e. The need to induce industries to invest in the
countryside;
f. Improvements in standards of living;
g. The prevailing wage levels;
h. Fair return of the capital invested and capacity to pay of
employers;
i. Effects on employment generation and family income;
and
j. The equitable distribution of income and wealth along
the imperatives of economic and social development.
The wages prescribed in accordance with the provisions of this
Title shall be the standard prevailing minimum wages in every
region. These wages shall include wages varying with industries,
provinces or localities if in the judgment of the Regional Board,
conditions make such local differentiation proper and necessary
to effectuate the purpose of this Title.
Any person, company, corporation, partnership or any other
entity engaged in business shall file and register annually with
the appropriate Regional Board, Commission and the National
Statistics Office, an itemized listing of their labor component,
specifying the names of their workers and employees below the
managerial level, including learners, apprentices and
disabled/handicapped workers who were hired under the terms
prescribed in the employment contracts, and their
corresponding salaries and wages.
Where the application of any prescribed wage increase by
virtue of a law or wage order issued by any Regional Board
results in distortions of the wage structure within an
establishment, the employer and the union shall negotiate to
correct the distortions. Any dispute arising from wage
distortions shall be resolved through the grievance procedure
under their collective bargaining agreement and, if it remains
unresolved, through voluntary arbitration. Unless otherwise
agreed by the parties in writing, such dispute shall be decided
by the voluntary arbitrators within ten (10) calendar days from
the time said dispute was referred to voluntary arbitration.
In cases where there are no collective agreements or
recognized labor unions, the employers and workers shall
endeavor to correct such distortions. Any dispute arising
therefrom shall be settled through the National Conciliation and
Mediation Board and, if it remains unresolved after ten (10)
calendar days of conciliation, shall be referred to the
appropriate branch of the National Labor Relations Commission
(NLRC). It shall be mandatory for the NLRC to conduct
continuous hearings and decide the dispute within twenty (20)
calendar days from the time said dispute is submitted for
compulsory arbitration.
The pendency of a dispute arising from a wage distortion shall
not in any way delay the applicability of any increase in
prescribed wage rates pursuant to the provisions of law or
wage order.
As used herein, a wage distortion shall mean a situation where
an increase in prescribed wage rates results in the elimination
or severe contraction of intentional quantitative differences in
wage or salary rates between and among employee groups in
an establishment as to effectively obliterate the distinctions
embodied in such wage structure based on skills, length of
service, or other logical bases of differentiation.
All workers paid by result, including those who are paid on
piecework, takay, pakyaw or task basis, shall receive not less
than the prescribed wage rates per eight (8) hours of work a
day, or a proportion thereof for working less than eight (8)
hours.
All recognized learnership and apprenticeship agreements shall
be considered automatically modified insofar as their wage
clauses are concerned to reflect the prescribed wage rates. (As
amended by Republic Act No. 6727, June 9, 1989)
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LABOR RELATIONS LAW
REPUBLIC ACT NO. 6727
AN ACT TO RATIONALIZE WAGE POLICY DETERMINATION
BY ESTABLISHING THE MECHANISM AND PROPER
STANDARDS THEREFOR, AMENDING FOR THE PURPOSE
ARTICLE 99 OF, AND INCORPORATING ARTICLES 120, 121,
122, 123, 124, 126 AND 127 INTO, PRESIDENTIAL DECREE
NO. 442, AS AMENDED, OTHERWISE KNOWN AS THE LABOR
CODE OF THE PHILIPPINES, FIXING NEW WAGE RATES,
PROVIDING WAGE INCENTIVES FOR INDUSTRIAL
DISPERSAL TO THE COUNTRYSIDE, AND FOR OTHER
PURPOSES.
Sec. 2. It is hereby declared the policy of the State to rationalize
the fixing of minimum wages and to promote productivity-
improvement and gain-sharing measures to ensure a decent
standard of living for the workers and their families; to guarantee
the rights of labor to its just share in the fruits of production; to
enhance employment generation in the countryside through
industry dispersal; and to allow business and industry reasonable
returns on investment, expansion and growth.
The State shall promote collective bargaining as the primary
mode of setting wages and other terms and conditions of
employment; and, whenever necessary, the minimum wage rates
shall be adjusted in a fair and equitable manner, considering
existing regional disparities in the cost of living and other socio-
economic factors and the national economic and social
development plans.
8. Labor Injunction
Art. 254. Injunction prohibited. No temporary or permanent
injunction or restraining order in any case involving or growing
out of labor disputes shall be issued by any court or other entity,
except as otherwise provided in Articles 218 and 264 of this
Code. (As amended by Batas Pambansa Bilang 227, June 1,
1982)
Art. 218. Powers of the Commission. The Commission shall
have the power and authority:
a. To enjoin or restrain any actual or threatened
commission of any or all prohibited or unlawful acts or to
require the performance of a particular act in any labor
dispute which, if not restrained or performed forthwith,
may cause grave or irreparable damage to any party or
render ineffectual any decision in favor of such party:
Provided, That no temporary or permanent injunction in
any case involving or growing out of a labor dispute as
defined in this Code shall be issued except after hearing
the testimony of witnesses, with opportunity for cross-
examination, in support of the allegations of a complaint
made under oath, and testimony in opposition thereto, if
offered, and only after a finding of fact by the
Commission, to the effect:
1. That prohibited or unlawful acts have been
threatened and will be committed and will be
continued unless restrained, but no injunction
or temporary restraining order shall be issued
on account of any threat, prohibited or
unlawful act, except against the person or
persons, association or organization making
the threat or committing the prohibited or
unlawful act or actually authorizing or ratifying
the same after actual knowledge thereof;
2. That substantial and irreparable injury to
complainant’s property will follow;
3. That as to each item of relief to be granted,
greater injury will be inflicted upon
complainant by the denial of relief than will be
inflicted upon defendants by the granting of
relief;
4. That complainant has no adequate remedy at
law; and
5. That the public officers charged with the duty
to protect complainant’s property are unable
or unwilling to furnish adequate protection.
Such hearing shall be held after due and personal
notice thereof has been served, in such manner as the
Commission shall direct, to all known persons against
whom relief is sought, and also to the Chief Executive
and other public officials of the province or city within
which the unlawful acts have been threatened or
committed, charged with the duty to protect
complainant’s property: Provided, however, that if a
complainant shall also allege that, unless a temporary
restraining order shall be issued without notice, a
substantial and irreparable injury to complainant’s
property will be unavoidable, such a temporary
restraining order may be issued upon testimony under
oath, sufficient, if sustained, to justify the Commission
in issuing a temporary injunction upon hearing after
notice. Such a temporary restraining order shall be
effective for no longer than twenty (20) days and shall
become void at the expiration of said twenty (20) days.
No such temporary restraining order or temporary
injunction shall be issued except on condition that
complainant shall first file an undertaking with
adequate security in an amount to be fixed by the
Commission sufficient to recompense those enjoined
for any loss, expense or damage caused by the
improvident or erroneous issuance of such order or
injunction, including all reasonable costs, together with
a reasonable attorney’s fee, and expense of defense
against the order or against the granting of any
injunctive relief sought in the same proceeding and
subsequently denied by the Commission.
The undertaking herein mentioned shall be understood
to constitute an agreement entered into by the
complainant and the surety upon which an order may
be rendered in the same suit or proceeding against
said complainant and surety, upon a hearing to assess
damages, of which hearing, complainant and surety
shall have reasonable notice, the said complainant
and surety submitting themselves to the jurisdiction of
the Commission for that purpose. But nothing herein
contained shall deprive any party having a claim or
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LABOR RELATIONS LAW
cause of action under or upon such undertaking from
electing to pursue his ordinary remedy by suit at law or
in equity: Provided, further, That the reception of
evidence for the application of a writ of injunction may be
delegated by the Commission to any of its Labor Arbiters
who shall conduct such hearings in such places as he
may determine to be accessible to the parties and their
witnesses and shall submit thereafter his
recommendation to the Commission. (As amended by
Section 10, Republic Act No. 6715, March 21, 1989)
Art. 264. Prohibited activities.
a. No labor organization or employer shall declare a strike
or lockout without first having bargained collectively in
accordance with Title VII of this Book or without first
having filed the notice required in the preceding Article
or without the necessary strike or lockout vote first
having been obtained and reported to the Ministry.
No strike or lockout shall be declared after assumption
of jurisdiction by the President or the Minister or after
certification or submission of the dispute to compulsory
or voluntary arbitration or during the pendency of cases
involving the same grounds for the strike or lockout.
Any worker whose employment has been terminated as
a consequence of any unlawful lockout shall be entitled
to reinstatement with full backwages. Any union officer
who knowingly participates in an illegal strike and any
worker or union officer who knowingly participates in the
commission of illegal acts during a strike may be
declared to have lost his employment status: Provided,
That mere participation of a worker in a lawful strike
shall not constitute sufficient ground for termination of
his employment, even if a replacement had been hired
by the employer during such lawful strike.
b. No person shall obstruct, impede, or interfere with, by
force, violence, coercion, threats or intimidation, any
peaceful picketing by employees during any labor
controversy or in the exercise of the right to self-
organization or collective bargaining, or shall aid or abet
such obstruction or interference.
c. No employer shall use or employ any strike-breaker, nor
shall any person be employed as a strike-breaker.
d. No public official or employee, including officers and
personnel of the New Armed Forces of the Philippines or
the Integrated National Police, or armed person, shall
bring in, introduce or escort in any manner, any
individual who seeks to replace strikers in entering or
leaving the premises of a strike area, or work in place of
the strikers. The police force shall keep out of the picket
lines unless actual violence or other criminal acts occur
therein: Provided, That nothing herein shall be
interpreted to prevent any public officer from taking any
measure necessary to maintain peace and order, protect
life and property, and/or enforce the law and legal
order. (As amended by Executive Order No. 111,
December 24, 1986)
e. No person engaged in picketing shall commit any act
of violence, coercion or intimidation or obstruct the
free ingress to or egress from the employer’s premises
for lawful purposes, or obstruct public
thoroughfares. (As amended by Batas Pambansa
Bilang 227, June 1, 1982)
REPUBLIC ACT NO. 8791 May 23, 2000
AN ACT PROVIDING FOR THE REGULATION OF THE
ORGANIZATION AND OPERATIONS OF BANKS, QUASI-
BANKS, TRUST ENTITIES AND FOR OTHER PURPOSES
Section 22. Strikes and Lockouts. - The banking industry is
hereby declared as indispensable to the national interest and,
notwithstanding the provisions of any law to the contrary, any
strike or lockout involving banks, if unsettled after seven (7)
calendar days shall be reported by the Bangko Sentral to the
secretary of Labor who may assume jurisdiction over the
dispute or decide it or certify the sane to the National Labor
Relations Commission for compulsory arbitration. However, the
President of the Philippines may at any time intervene and
assume jurisdiction over such labor dispute in order to settle or
terminate the same. (6-E)
Rationale for Prohibition:
Caltex Filipino Managers & Supervisors Association vs.
CIR
9. Tripartism
ART. 275. Tripartism and tripartite conferences. -
(a) Tripartism in labor relations is hereby declared a
Statepolicy. Towards this end, workers and employers shall, as
faras practicable, be represented in decision and policy-
makingbodies of the government.
(b) The Secretary of Labor and Employment or his
dulyauthorized representatives may, from time to time, call
anational, regional, or industrial tripartite conference
ofrepresentatives of government, workers and employers forthe
consideration and adoption of voluntary codes ofprinciples
designed to promote industrial peace based onsocial justice or
to align labor movement relations withestablished priorities in
economic and social development.In calling such conference,
the Secretary of Labor andEmployment may consult with
accredited representatives ofworkers and employers. (As
amended by Section 32,Republic Act No. 6715, March 21,
1989).
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LABOR RELATIONS LAW
C. Right to Self-Organization
1. Basis
a. Constitutional Basis
Art III Sec 8.- The right of the people, including those employed
in the public and private sectors, to form unions,associations, or
societies for purposes not contrary to law shall not be abridged.
Art XIII, Sec 3. - The State shall afford full protection to labor,
local and overseas, organized and unorganized, and promote full
employment and equality of employment opportunities for all. It
shall guarantee the rights of all workers to self-organization,
collective bargaining and negotiations, and peaceful concerted
activities, including the right to strike in accordance with law. They
shall be entitled to security of tenure, humane conditions of work,
and a living wage. They shall also participate in policy and
decision-making processes affecting their rights and benefits as
may be provided by law.
The State shall promote the principle of sharedresponsibility
between workers and employers and the preferential use of
voluntary modes in settling disputes,including conciliation, and
shall enforce their mutual compliance therewith to foster industrial
peace.
The State shall regulate the relations between workers
andemployers, recognizing the right of labor to its just share inthe
fruits of production and the right of enterprises toreasonable
returns to investments, and to expansion andgrowth.
b. Statutory basis
ART. 243. Coverage and employees’ right to self-
organization. - All persons employed in commercial,industrial
and agricultural enterprises and in religious charitable, medical,
or educational institutions, whetheroperating 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 people, rural workers and those without any definite
employers may form labor organizations for their mutual aid and
protection.(As amended by Batas Pambansa Bilang 70, May 1,
1980).
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. (As amended by Executive Order
No. 111,December 24, 1986).
ART. 245. Ineligibility of managerial employees to join any
labororganization; 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 a labor organization of the rank-and-file
employees but may join, assist or form separate labor
organizations of their own. (As amended by Section 18,
RepublicAct No. 6715, March 21, 1989).
UST Faculty Union vs. Bitonio
318 SCRA 186
RULING
Self-organization is a fundamental right to form, join or assist
labor organizations for collective bargaining, mutual aid and
protection. Whether employed for a definite period or not,
employee shall be considered as such, beginning 1st day of
service, for purposes of membership in a labor union. Corollary
to this right is the prerogative not join.
The election can't be considered as exercise of right to self-
organization because the petitioners' frustration over the
performance of the respondents could not justify the method
they chose to impose their will on the union.
National Union of Bank Employees vs. Ministry of Labor
110 SCRA 274
the pendency of the petition for cancellation of the registration
certificate of herein petitioner union is not a bar to the holding of
a certification election. because there is no order directing such
cancellation.
- As aptly ruled by respondent Bureau of Labor Relations
Director Noriel: "The rights of workers to self-organization finds
general and specific constitutional guarantees. Section 7,
Article IV of the Philippine Constitution provides that the right to
form associations or societies for purposes not contrary to law
shall not be abridged. This right is more pronounced in the case
of labor. Section 9, Article II (ibid) specifically declares that the
State shall assure the rights of workers to self-organization,
collective bargaining, security of tenure and just and humane
conditions of work. Such constitutional guarantees should not
be lightly taken much less easily nullified. A healthy respect for
the freedom of association demands that acts imputable to
officers or members be not easily visited with capital
punishments against the association itself"
2. Extent and Scope of Right
Reyes vs. Trajano
Logically, the right NOT to join, affiliate with, or assist
any union, and to disaffiliate or resign from a labor organization,
is subsumed in the right to join, affiliate with, or assist any
union, and to maintain membership therein.
The right to form or join a labor organization
necessarily includes the right to refuse or refrain from
exercising said right. It is self-evident that just as no one should
be denied the exercise of a right granted by law, so also, no
one should be compelled to exercise such a conferred right.
The fact that a person has opted to acquire membership in a
labor union does not preclude his subsequently opting to
renounce such membership.
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LABOR RELATIONS LAW
Pan American World Airways, Inc.
vs. Pan-American Employees Assn.
275 SCRA 1202
There is both a constitutional and statutory recognition that
laborers have the right to form unions to take care of their
interests vis-a-vis their employers.
The moment management displays what in this caseb appears to
be a grave but unwarranted distrust in the union officials
discharging their functions just because a strike was resorted to,
then the integrity of the collective bargaining process itself is
called into question. It would have been different if there were a
rational basis for such fears, purelyspeculative in character. The
record is bereft of the slightestindication that any danger, much
less one clear and present, is to be expected from their return to
work.If petitionerwere to succeed in their unprecedented demand,
thelaborers in this particular union would thus be confrontedwith
the sad spectacle of the leaders of their choicecondemned as
irresponsible, possibly even constituting amenace to the
operations of the enterprise. That is anindictment of the gravest
character, devoid of any factualbasis. What is worse, the result,
even if not intended, wouldbe to call into question their
undeniable right to choose theirleaders, who must be treated as
such with all the respect towhich they are legitimately entitled.
The fact that theywould be paid but not be allowed to work is, to
repeat, toadd to the infamy that would thus attach, to
themnecessarily, but to respondent union equally.
Union of Supervisors vs. Sec of Labor
109 SCRA 138
Luna's remarks at the meeting of an official board are privileged
in nature as a valid exercise of his constitutional freedom of
expression. He addressed his remarks to the body that has
jurisdiction over the question of management of the assets ofthe
Provident Fund. Luna's remarks were intended to protect the
interests of the members of the Provident Fund from what he
honestly believed was a risky venture on the part of th
emanagement.
-His protests could even be treated as union activity by the
Industrial Peace Act, which assures the employees'right "to self-
organization and to form, join or assistlabor organizations of their
own choosing and to engagein concerted activities for the
purpose of collectivebargaining and other mutual aid and
protection ... " (Sec.3, Rep. Act 875).
Central Negros, etc. vs. Sec of Labor
201 SCRA 584
Membership in the cooperative is on a voluntary basis. Hence,
withdrawal therefrom cannot be restricted unncessarily. The right
to join an organization necessarily includes the equivalent right to
join the same.
The right of the employees to self-organization is a compelling
reason why their withdrawal from the cooperative must be
allowed. As pointed out by CURE, the resignation of the member-
employees is an expression of their preference for union
membership over that or membership in the cooperative. The
avowed policy of the State to afford fall protection to labor and
to promote the primacy of free collective bargaining mandates
that the employees' right to form and join unions for purposes
of collective bargaining be accorded the highest consideration.
- Membership in an electric cooperative which merely vests in
the member a right to vote during the annual meeting becomes
too trivial and insubstantial vis-a-vis the primordial and more
important constitutional right of an employee to join a union of
his choice. Besides, the 390 employees ofCENECO, some of
whom have never been members of the cooperative, represent
a very small percentage of the cooperative's total membership
of 44,000. It is inconceivable how the withdrawal of a negligible
number of members could adversely affect the business
concerns and operations of CENECO.
3. Workers with Right of Self-Organization
Sec. 8, Art. III, 1987 Constitution
Section 8. The right of the people, including those employed in
the public and private sectors, to form unions, associations, or
societies for purposes not contrary to law shall not be abridged.
Sec. 3, Art. XIII, 1987 Constitution
ARTICLE XIII
LABOR
Section 3. The State shall afford full protection to labor, local
and overseas, organized and unorganized, and promote full
employment and equality of employment opportunities for all.
It shall guarantee the rights of all workers to self-organization,
collective bargaining and negotiations, and peaceful concerted
activities, including the right to strike in accordance with law.
They shall be entitled to security of tenure, humane conditions
of work, and a living wage. They shall also participate in policy
and decision-making processes affecting their rights and
benefits as may be provided by law.
The State shall promote the principle of shared responsibility
between workers and employers and the preferential use of
voluntary modes in settling disputes, including conciliation, and
shall enforce their mutual compliance therewith to foster
industrial peace.
The State shall regulate the relations between workers and
employers, recognizing the right of labor to its just share in the
fruits of production and the right of enterprises to reasonable
returns to investments, and to expansion and growth.
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LABOR RELATIONS LAW

Workers Qualifications – Art. 277 (c) Labor Code

a. Any employee, whether employed for a definite period or

not, shall, beginning on his first day of service, be
considered as an employee for purposes of membership
in any labor union. (As amended by Section 33,
Republic Act No. 6715)

Required Action - Constitution and By-Laws

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