Parties in CBA

Terms or mandatory provisions

of CBA:

1. Wages
2. Hours of work
3. Vacations and Holidays
Exclusive Bargaining Management (Employer)- refers to
4. Bonuses
Representative- refers to a any person or entity who employs
5. Pensions and
legitimate labor organization the services of others, one for
retirement plans
duly recognize or certified as the whom employees work aho pays
6. Lay-offs
sole or agent of all the their wages or salaries.
7. Employees workload
employees in a bargaining unit.
8. Work rules and
regulations
9. Union Security
Arrangements
10. Grievance Machinery
11. Voluntary Arbitration
12. Other benefits under
Labor Standards

Collective Bargaining Agreement (CBA)- is a contract between the excluside bargaining representative of the employee
and the management (employer) executed upon by the parties to negotiate the terms mentioned above.

The employer is not under the legal duty to initiate contract negotiation. The preconditions in order to enter in a CBA:

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;
3. A demand to bargain under Article 256, Par. (a)

Duration (Term) of the CBA:

 With respect to representation aspect (refers to identity and majority status of the union that negotiated the CBA
as the exclusive representative of the bargaining unit), lasts for 5 years after the execution of the CBA.
 With respect to other provions: 1. economic (agreements with regard to wages, bonuses, incentives and other
terms and conditions for the benefit of the employee) 2. non-economic (includes management prerogatives,
union security clauses) may lasts for 3 years after the execution of the CBA.

When there is no CBA- it shall be the duty of employer and representatives of the employee to bargain collectively in
accordance with the provisions of the labor code. (LC, Art 262)

When there is a CBA- the duty to bargain collectively shall also mean that neither party shall terminate nor modify such
agreement during its lifetime. However, either party can serve a written notice to terminate or modify the agreement at
least 60 days prior to its expiration date. It shall be the duty of both parties to keep the status quo and continue in full
force and effect the terms and conditions of the existing agreement during the 60-day period and/or until a new
agreement is reached by the parties (LC, Art 264)

Labor Management Council- deals with the employer on matters affecting the employee’s rights, benefits, and welfare.
The purpose of LMC are 1. to strengthen the employees participation; 2. promote gainful employment; 3. improve working
conditions; 4; achieve increased productivity. It can exist where there is no union or co-exist with a union. It must not
replace a union. In short, LMC can deal with the employer on matters affecting the employees’ rights, benefits, and
welfare.