ust labor relations- golden notes 2011

8/10/2019 UST Labor Relations- Golden Notes 2011

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LABORLAWTEAM:

ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO

MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM128

G.LABORRELATIONSLAW

1.RIGHTTOSELFORGANIZATION

a.Whomayunionizeforpurposesofcollective

bargaining

Q:

What

is

the

extent

of

the

right

to

self

organization?

A: Itincludestheright:

1. To form, join and assist labor

organizations for the purpose of

collective bargaining (CB) through

representatives of their own

choosing;and

2. To engage in lawful and concerted

activitiesforthepurposeofCBorfor

theirmutualaidandprotection.(Art.

246)

Q: Who are the persons/Ees eligible to join a

labororganization(LO)forpurposesofCB?

A:Theentitiescoveredareallpersonsemployedin:

1. Commercial industrial, and agricultural

enterprises;and

2. In religious, charitable, medical or

educational institutions whether

operatingforprofitornot. (Art.243)

Q: Who are the persons/Ees eligible tojoin a

labororganizationformutualaidandprotection?

A:Thefollowingenjoytherighttoselforganization

formutualaidandprotection:

1. Ambulantworkers

2. Intermittentworkers

3. Itinerantworkers

4. Selfemployedpeople

5. Ruralworkers

6. Those without and definite Ers. (Art.

243)

Q: Whoarethepersons/Eesnotgrantedtheright

toselforganization:

A:

1. High level or Managerial Government

Ees. (Sec.3,E.O.180)

2. Ees of International organizations with

immunities. (ICMC v. Calleja, G.R. No.

85750,Sep.28,1990)

3. ManagerialEmployees. (Art.212ofLC)

4. Membersof theAFP including thepolice

officers, policemen, firemen, and jail

guards. (Sec.4,E.O.180)

5. Confidential Employees. (Metrolab

Industries Inc. v. Confesor, G.R. No.

108855,Feb.28,1996)

6. Employees of cooperatives who are its

members. (BenguetElec.

Coop.

v.

Ferrer

Calleja, G.R. No. 79025, Dec. 29, 1989);

However they may form workers

association. (NEECOEesAssoc.v.NLRC,

G.R.No.16066,Jan.24,2000)

7. NonEes. (RosarioBros.v.Ople,G.R.No.

L5390,July31,1984)

8. GovtEes, includingGOCCswithoriginal

charters. (Arizalav.CA,G.R.Nos.43633

34,Sep.14,1990)

9. Alienswithout a validworkingpermitor

aliens with working permits but are

nationalsofacountrywhichdonotallow

Filipinos to exercise their right of self

organization and to join or assist labor

organizations. (Art.269ofLC;D.O.No.9

[1997],RuleII,Sec.2)

b.BargainingUnit

Q: Whatisabargainingunit?

A: ItisagroupofEesofagivenEr,comprisedofall

orlessthanalloftheentirebodyoftheEeswhich

thecollectiveinterestofalltheEesconsistentwith

equitytotheemployer,indicatetobebestsuitedto

servethereciprocalrightsanddutiesoftheparties

under the collective bargaining provisions of the

law.

Q: Whatisanappropriatebargainingunit?

A: 1. Agroupofemployees(Ees)

2. Ofagivenemployer

3. Comprised of all or less than all of the

entirebodyofEes

4. WhichthecollectiveinterestofalltheEes

consistentwithequitytotheEr

5. Indicate to be best suited to serve the

reciprocalrightsanddutiesoftheparties

underthecollectivebargainingprovisions

ofthelaw.

(1)Testtodeterminetheconstituencyofan

appropriatebargainingunit

Q:Whatarethefactorsconsideredindetermining

theappropriatenessofabargainingunit?

A:

1. WilloftheEes. (GlobeDoctrine)


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LABOR RELATIONS LAW

129

UNIVERSITY OF SANTO TOMAS

F a c u l t a d d e D e r e c h o i v i l

ACADEMICSCHAIR:LESTERJAYALANE.FLORESII

VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA

VICECHAIRFORADMINISTRATION ANDFINANCE:JEANELLEC. LEE

VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ

2. AffinityandunityoftheEesinterest,such

as substantial similarity of work and

duties,or similarityofcompensationand

working conditions. (Substantial Mutual

InterestRule)

3. Priorcollectivebargaininghistory

4. Similarityofemploymentstatus. (SMCv.

Laguesma,G.R.

No.

100485,

Sep.

21,

1994)

Q: Whatarethefactorsconsideredindetermining

thesubstantialmutualinterestdoctrine?

A: 1. Similarity in the scale and manner of

determiningearnings

2.

Similarity in employment benefits, hours

ofwork,andother termsand conditions

ofemployment

3. Similarityinthekindsofworkperformed

4. Similarity in the qualifications, skills and

trainingofEes

5.

Frequency

of

contract

or

interchange

amongtheEes

6. Geographicalproximity

7. Continuity and integration of production

processes

8. Common supervision and determination

oflaborrelationspolicy

9. HistoryofCB

10. DesiresoftheaffectedEesor

11. Extentofunionorganization

Q: AregisteredlaborunioninUP,ONAPUP,fileda

petition forcertificationelection(PCE)amongthe

nonacademicEes. Theuniversitydidnotoppose,

however,another

labor

union,

the

All

UP

Workers

Union assents that it represents both academic

andnonacademicpersonnelandseekstouniteall

workers in 1 union. Do Ees performing academic

functions need to comprise a bargaining unit

distinctfromthatofthenonacademicEes?

A: Yes. The mutuality of interest test should be

taken intoconsideration. Therearetwoclassesof

rankandfileEesintheuniversitythatis,thosewho

performacademicfunctionssuchastheprofessors

andinstructors,andthosewhosefunctionarenon

academicwhoare thejanitors,messengers, clerks

etc.Thus,notmuchreflectionisneededtoperceive

thatthe

mutuality

of

interest

which

justifies

the

formation of a single bargaining unit is lacking

between the two classes of Ees. (U.P. v. Ferrer

Calleja,G.R.No.96189,July14,1992)

Q: Isthebargaininghistoryadecisivefactorinthe

determination of appropriateness of bargaining

unit?

A: No.Whiletheexistenceofabargaininghistoryis

afactorthatmaybereckonedwith indetermining

the appropriate bargaining unit, the same is not

decisive or conclusive. Other factors must be

considered. The test of grouping is community or

mutualityof interests.This is sobecause thebasic

testofanassertedbargainingunitsacceptabilityis

whetheror

not

it

is

fundamentally

the

combination

whichwillbestassuretoallEestheexerciseoftheir

CB rights. (Democratic Labor Assn v. Cebu

StevedoringCompany, Inc.,G.R.No. L10321, Feb.

28,1958)

Q: Whatisoneunion,onecompanypolicy?

A: GR: ItistheproliferationofunionsinanErunit.

Suchisdiscouragedasamatterofpolicyunless

therearecompellingreasonswhichwoulddeny

a certain class of Ees to the right to self

organization for purposes of collective

bargaining(CB).

XPNs:

1. SupervisoryEeswhoareallowedtoform

their own unions apart from the rank

andfileEesand

2.

ThepolicyshouldyieldtotherightofEes

to form union for purposes not contrary

tolaw,selforganizationandtoenterinto

CBnegotiations.

Note:Twocompaniescannotbetreated intoasingle

bargaininguniteveniftheirbusinessesarerelated.

Subsidiaries or corporations formed out of former

divisions

of

a

mother

company

following

a

reorganization may constitute a separate bargaining

unit.

Q: UnionfiledaPCEamongtherankandfileEes

of three security agencies including the Veterans

Security.Thelatteropposedallegingthatthethree

security agencies have separate and distinct

corporatepersonalities.MayasinglePCEfiledbya

labor union in the three corporations instead of

filing3separatepetitions?

A: Yes. The following are indications that the 3

agencies do not exist and operate separately and

distinctlyfrom

each

other

with

different

corporate

direction and goals: 1) Veterans Security failed to

rebut the fact that theyaremanaged through the

Utilities Management Corp with all their Ees

drawing their salaries and wages from the said

entity; 2) that the agencies have common and

interlocking incorporatorsandofficers;3)thatthey

haveasinglemutualbenefitsystemandfolloweda

single system of compulsory retirement. 4) they

couldeasily transfersecurityguardsofoneagency


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LABORLAWTEAM:



to another and back again by simply fillingup a

common proforma slip; 5) they always holdjoint

yearlyceremoniessuchas thePGAAnnualAwards

Ceremony;and6)theycontinuetoberepresented

byonecounsel.

Hence, the veil of corporate fiction of the 3

agencies should be lifted for the purpose ofallowing the Ees of the 3 agencies to form single

union. Asasinglebargainingunit,theEesneednot

file 3 separate PCE. (Philippine Scout Veterans

Security and InvestigationAgency v. SLE, G.R.No.

92357,July21,1993)

(2)VoluntaryRecognition

Q: What are the 3 methods of determining the

bargainingrepresentative?

A:

1. Voluntaryrecognition

2. Certificationelectionwithorwithoutrunoff

3. Consentelection

Q: Whatisvoluntaryrecognition(VR)?

A:Theprocessbywhicha legitimatelaborunionis

recognized by the employer (Er) as the exclusive

bargaining representative or agent in a bargaining

unit, reported with the Regional Office. (Sec. 1

[bbb],RuleI,BookV,IRR)

Q:WhataretherequirementsforVR?

A:

The

notice

of

VR

shall

be

accompanied

by

the

originalcopyand2duplicatecopiesofthefollowing

reqts:

1. JointstatementunderoathofVR

2. Certificate of posting ofjoint statement

for 15 consecutive days in at least 2

conspicuous places in the establishment

ofthebargainingunit

3. Certificateofposting

4. Approximate number of Ees in the

bargaining

unit

and

the

names

of

those

whosupportedtherecognition

5. Statementthatthelaborunionistheonly

LLOoperatingwithinthebargainingunit.

Note: Where the notice of voluntary recognition is

sufficient in form, number and substance and where

thereisnoregisteredlaborunionoperatingwithinthe

bargaining unit concerned, the Regional Office,

through the Labor Relations Division shall, within 10

daysfromreceiptofthenotice,recordthefactofVRin

its roster of legitimate labor unions and notify the

laborunionconcerned.

Q: Whatarethethree(3)conditionstovoluntary

recognition(VR)?

A: VRrequires3concurrentconditions:

1. VR is possible only in an unorganized

establishment.

2. Onlyoneunionmustaskforrecognition.If

there 2 or more unions asking to be

recognized, the Er cannot recognize any

of them; the rivalry must be resolved

throughanelection.

3.

The

union

voluntarily

recognized

should

bethemajorityunionasindicatedbythe

fact thatmembersof thebargainingunit

did not object to the projected

recognition. Ifnoobjection is raised, the

recognitionwillproceed,theDOLEwillbe

informed and CBA recognition will

commence. If objection is raised, the

recognition is barred and a certification

election or consent election will have to

takeplace.

Note: In an organized establishment, voluntary

recognitionisnotpossible.ApetitiontoholdaCEhas

to

be

filed

within

the

freedom

period

which

means

the

last60daysof the5th yearof theexpiringCBA.The

petition may be filed by any Legitimate Labor

Organization(LLO),butthepetitionmusthavewritten

support of at least 25% of the Ees in the bargaining

unit.

Q:WhereandwhentofilethepetitionforVR?

A: Within 30 days from such recognition, Er shall

submit a notice of VR with the Regional Office

which issued the recognized labor unions

certificate of registration or certificate of creation

ofacharteredlocal.

Q:

What

are

the

effects

of

recording

of

fact

of

voluntaryrecognition(VR)?

A:

1. The recognized labor union shall enjoy

therights,privilegesandobligationsofan

existing bargaining agent of all the

employees(Ees)inthebargainingunit.

2. Itshallalsobarthefilingofapetitionfor

certification election by any labor


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LABORLAWTEAM:



2. Anationalunionor federationwhichhas

already issued a charter certificate to its

localchapterparticipatingintheCE

3. A local chapter whichhas been issued a

chartercertificate

4. An Er only when requested to bargain

collectively inabargainingunitwhereno

registered CBA exists. (Sec.1,

Rule

VIII,

BookV,IRRasamendedbyD.O.40F03)

Note:Anationalunionorfederationfilingapetitionin

behalf of its local/chapter shall not be required to

disclose thenamesof the local/chaptersofficersand

members,but shallattach to thepetition thecharter

certificate it issued to its local/chapter. (Sec. 1, Rule

VIII,BookV,IRRasamendedbyD.O.40F03)

Q:Mayanemployee intervene inthepetitionfor

certificationelection(PCE)?

A: Yes, for thepurposeofprotectinghis individual

right. (Sec.1,

Rule

VIII,

Book

V,

IRR

as

amended

by

D.O.4003)

Q:WhereisPCEfiled?

A: It shall be filed with the Regional Office which

issued the petitioning union's certificate of

registration/certificate of creation of chartered

local.(ImplementingRules,asamendedbyD.O.40

03)

Q:WhoshallhearandresolvethePCE?

A:TheMediatorArbiter.

Q:WhentofilePCE?

A: The proper time to file the PCE depends on

whethertheCertifiedBargainingUnithasaCBAor

not:

1. If ithasnoCBA,thepetitionmaybefiled

anytime outside the 12month bar

(certificationyear).

2. IfithasCBA,itcanbefiledonlywithinthe

last60daysofthe5thyearoftheCBA.

Note:At theexpirationofthefreedomperiod,theEr

shallcontinue to recognize themajority statusof theincumbentbargainingagentwherenoPCEisfiled.

Q: Distinguish union election from certification

election.

A:

UNIONELECTION CERTIFICATIONELECTION

Heldpursuanttothe

unionsconstitutionand

Theprocessisordered

andsupervisedbyDOLE

bylaws

Righttovoteisenjoyed

onlybyunionmembers

AllEeswhetherunionor

nonunionmemberswho

belongtotheappropriate

bargainingunitcanvote

Winnersofunionelectionbecomeofficersand

representativesofthe

uniononly

ThewinnerinaCEisan

entity,aunion,which

becomestherepresentativeofthe

wholebargainingunit

thatincludeseventhe

membersofthedefeated

unions.

Note: Both in CE and union election, the prescribed

proceduresshouldbefollowed.

Q:Cana"nounion"wininacertificationElection

(CE)?

A:Yes.BecausetheobjectiveinaCEistoascertain

the majority representation of the bargaining

representative, iftheEesdesiretoberepresented

at all by anyone. Hence, no union is one of the

choicesinaCE.(2006BarQuestion)

AlternativeAnswer:

No.AnounioncannotwininaCE.Thepurposeofa

CE is to select anexcusivebargaining agentand a

nounionvotewouldpreciselymeanthatthevoter

isnotchoosinganyofthecontendingunions.Ifthe

nounion votes constitute a majority of the valid

votescast, thisfactwillall themoremeanthatno

unionwon inCE.Aoneyearbarwillconsequently

stop theholdingof anotherCE to allow theEr to

enjoyindustrialpeaceforatleastoneyear.

Q: In what instance may a PCE be filed outside

the freedom period of acurrentCBA?

A: As a general rule, in an establishment where

there is aCBA in force and effect, a PCE may be

filed only during the freedomperiodofsuchCBA.

But tohave thateffect, theCBAshouldhavebeen

filedandregisteredwiththeDOLE.(Art.231,253A

and256,LC).(1997BarQuestion)

Thus,aCBAthathasnotbeenfiledandregistered

with theDOLE cannotbeabar toaCE and such

electioncanbeheldoutsidethefreedomperiodofsuchCBA.

AlternativeAnswer:

APCEmaybefiledoutsidethefreedom period of

a current CBA ifsuchCBA isanewCBAthathas

been prematurely entered into, meaning, it was

entered into before the expiry date of the old

CBA. The filing of the PCE shall be within the


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LABOR RELATIONS LAW

133







freedomperiodoftheoldCBAwhichisoutsidethe

freedom period of the new CBA that had been

prematurelyenteredinto.

Q: Are probationary employees (Ees) entitled to

voteinaCE?Why?

A:

Yes,

in

a

CE,

all

rankand

file

Ees

in

the

appropriate bargaining unit (ABU) are entitled to

vote. This principle is clearly stated inArt.255of

the LC which states that the "labor organization

designatedorselectedbythemajorityoftheEesin

such unit shall be the exclusive representative of

the Ees in such unit for the purpose of collective

bargaining(CB)."

CB covers all aspects of the employment relation

and the resultant CBA negotiated by the certified

unionbindsallEesinthebargainingunit.Hence,all

rank andfileEes,probationaryorpermanent,have

a substantial interest in the selection of the

bargaining

representative.

The

LC

makes

no

distinctionas to theiremployment status as basis

for eligibility to vote in the petition for CE. The

law refers to "all" the Ees in the bargaining unit.

All they need to be eligible to vote is to belong

to the "bargaining unit" (AirtimeSpecialists,Inc.v.

FerrerCalleja, G.R. No. 8061216, Dec. 29, 1989).

(1999BarQuestion)

Q:Whatisdirectcertification?

A: It is the process whereby the MedArbiter

directly certifies a labor organization of an

appropriate bargaining unit (ABU) of a company

afterashowing

that

such

petition

is

supported

by

atleastamajorityoftheEesinthebargainingunit.

Q: Does the failure of SAMAFIL (an independent

union) to prove its affiliation with NAFLUKMU

federation affect its right to file a PCE as an

independentunion?

A: No,asaLLO, ithastherighttofileaPCEon its

own beyond question. Its failure to prove its

affiliation with the NAFLUKMU cannot affect its

right to file said PCE as an independent union. At

the most, its failure will result in an ineffective

affiliationwithNAFLUKMU. Despiteaffiliation,the

localunion

remains

the

basic

unit

free

to

serve

the

common interestofall itsmembersandpursue its

own interests independently of the federation.

(Samahan ng mgaManggagawa sa Filsystems v.

SLE,G.R.No.128067,June5,1998)

Q: May illegally dismissed Ees of the company

participateinthecertificationelection(CE)?

A: Yes, it is now wellsettled that Ees who have

been improperly laid off but who have at present

an unabandoned right to or expectation of re

employment,areeligibletovoteinCEs. Thus,and

to repeat, if the dismissal is underquestion, as in

the case now at bar whereby a case of illegal

dismissaland/orULPwas filed,theEesconcerned

couldstill

qualify

to

vote

in

the

elections.

(Phil.

Fruits & Vegetables Industries v. Torres, G.R. No.

92391,July3,1992)

Q:Isdirectcertification(DC)stillallowed?

A: No. Even in a case where a union has filed a

petition for CE, the mere fact that there was no

opposition does not warrant a DC. More so in a

casewhentherequiredproofisnotpresentedinan

appropriateproceeding and the basisof theDC is

theunionsselfservingassertion that itenjoysthe

support of the majority of the Ees, without

subjecting suchassertion to the testof competing

claims.(Samahang

Manggagawa

sa

Permex

v.

Secretary,G.R.No.107792,Mar.2,1998)

Q:WhatarethegroundsfordenyingthePCE?

A:

1.

Thepetitioningunionorfederation isnot

listed in theDOLEsregistryof legitimate

labor unions or that its registration

certificate legal personality has been

revokedorcancelledwithfinality

2.

Failure of a local chapter or national

union/federation to submitaduly issued

charter certificate upon filing of the

petition

3. Thepetitionwasfiledbeforeorafterthe

FREEDOM PERIOD of a duly registered

CBA; provided that the 60day period

based on the original CBA shall not be

affectedbyanyamendment,extensionor

renewaloftheCBA;(contractbarrule)

4. Thepetitionwas filedwithin1year from

entry of voluntary recognition or within

thesameperiodfromavalidcertification,

consentorrunoffelectionandnoappeal

ontheresultsofthecertification,consent

or runoffelection ispending; (12month

bar;certificationyearbarrule)

5.

Aduly

certified

union

has

commenced

andsustainednegotiationswith theEr in

accordancewithArt.250oftheLCwithin

the1yearperiod.(negotiationbarrule)

6. Thereexistsabargainingdeadlockwhich

had been submitted to conciliation or

arbitrationorhadbecome thesubjectof

avalidnoticeofstrikeorlockouttowhich

an incumbent or certified bargaining

agentisaparty.(deadlockbarrule)


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LABORLAWTEAM:



7. In case of an organized establishment,

failure to submit the 25% support reqt

forthefilingofthePCE.

8. Nonappearance of the petitioner for 2

consecutive scheduled conferences

before the medarbiter despite due

notice,and

9. AbsenceofErEerelationshipbetweenallthemembersofthepetitioningunionand

the owner of the establishment where

theproposedbargainingunit issoughtto

berepresented.(Sec.14[a],RuleVIII,Book

V,IRR,asamendedbyD.O.40F03)

Q: What is a prohibited ground for the

denial/suspension of the petition for certification

election?

A: The inclusionasunionmembersofEesoutside

the bargaining unit. Said Ees are automatically

deemed removed from the list of membership of

saidunions.

Q: Does the filing of a petition to cancel the

petitioners registration cause the suspension or

dismissalofthepetitionforcertificationelection?

A:No.ToserveasagroundfordismissalofaPCE,

the legalpersonalityof thepetitionershouldhave

beenrevokedorcancelledwithfinality.

Q: UNIDAD, a labor organization claiming to

represent the majority of the rank and file

workers of BAGSAK Toyo Manufacturing Corp.

(BMTC), filed a petition for CE during the

freedom

period

obtaining

in

said

corp.

Despite the opposition thereto by SIGAW

Federation on the ground that UNIDAD was not

possessed with all the attributes of a duly

registeredunion,theMedArbiter issuedanorder

calling for a CE on July 25, 2001. This order was

promulgated and served on the parties on July

12, 2001. On July 14, 2001, UNIDAD submitted

and served the required documents for its

registration as an independent union, which

documentswereapprovedbytheDOLEonJuly15,

2001.

During the elections, UNIDAD won over SIGAW.

SIGAW

questioned

UNIDAD's

victory

on

the

ground that UNIDAD was not a duly registered

union when it filed the petition for a CE. Shall

SIGAWscaseprosperornot?Why?

A: No, SIGAW's case will not prosper. The

application of technicalities of procedural reqts

in CE disputes will serve no lawful objective or

purpose. It is a statutory policy that no obstacles

shouldbeplacedontheholdingofaCE,(Samahang

ng Manggagawa sa Pacific Plastic vs. Laguesma,

G.R.No.111245,Jan.31,1997)andthatthe law is

indisputablypartialtotheholdingofaCE.(Western

Agusanvs.TrajanoG.R.No.65833,May6,1991)

At any rate,UNIDAD completed all the reqts for

union registrationon July14,2001,andlegitimate

unionstatuswasaccordedon July15,2000,oratleast10daysbeforethescheduleddateforholding

theCE.(2001BarQuestion)

Q:Whatismeantbycontractbarrule?

A: Contractbar rulemeans thatwhile a valid and

registeredCBA issubsisting,theBLR isnotallowed

toholdanelectioncontestingthemajoritystatusof

the incumbent union except during the 60day

period immediately prior to its expiration, which

periodiscalledthefreedomperiod.

Note: Intheabsenceofsuchtimelynoticeorfilingof

petition, the contract executed during the automaticrenewalperiodisabartoCE.

There shall be no amendment, alteration, or

terminationofanyoftheprovisionsoftheCBAexcept

togivenoticeofonepartysintentiontoamend,alter

and terminate the provisions within the freedom

period.

Q: What are the requirements in order to invoke

thecontractbarrule?

A:TheexistingCBAmust:

1. Beinwritingandsignedbyallcontracting

parties2. Contain the terms and conditions of

employment

3. Cover employees in an appropriate

bargainingunit

4. Beforareasonableperiodorduration

5. Beratified

6. BeregisteredwiththeBLR;and

7. The violation of the contract bar rule or

the existence of a duly registered CBA

mustbespeciallypleadedasadefense.

Q:Whatistheeffectofaninvalidorunregistered

CBA?

A: There is no bar and therefore a certification

electionmaybeheld.

Note: Registration of CBA only puts into effect the

contractbarrulebuttheCBAitselfisvalidandbinding

evenifunregistered.

Q: What are the exceptions to the contract bar

rule?


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LABOR RELATIONS LAW

135







A:

1. TheCBAisunregistered

2. TheCBAisinadequateandincomplete

3.

The CBA was hastily entered into

(Doctrineofprematureextension)

4. Withdrawal of affiliation from the

contracting union brought about by

schismor

mass

disaffiliation

5.

Contract where the identity of the

representative is indoubt. (ALUv.Ferrer

Calleja,G.R.No.85085,Nov.6,1989)

6.

CBAenteredintobetweentheErandthe

union during the pendency of a petition

for CE (Vassar Industries Ees Union v.

Estrella,G.R.No.L46562,Mar.31,1978)

7.

CBA conducted between the Er and the

unionisnotbartoacertificationelection

filedby another unionand saidCBA can

berenegotiatedattheoptionofthenew

bargainingagent.(ATUv.Hon.Noriel,G.R.

No.L48367,Jan.16,1979)

8.

ACBA

registered

with

falsified

supporting

documents

9. CBA was concluded in violation of an

orderenjoiningthepartiesfromentering

into a CBA until the issue of

representationisresolved

10. Petition is filed during the 60day

freedomperiod.

Note:Basictothecontractbarrule istheproposition

thatthedelayoftherighttoselectrepresentativescan

bejustifiedonlywherestabilityisdeemedparamount.

Excepted from thecontractbar rulearecertain types

of contracts which do not foster industrial stability,

such

as

contracts

where

the

identity

of

the

representative is indoubt. Anystabilityderivedfrom

such contracts must be subordinated to the Ees

freedom of choice because it does not establish the

type of industrial peace contemplated by law.

(Firestone Tire & Rubber Company Ees Union v.

Estrella,G.R.No.L4551314,Jan.6,1978)

Q: Can the BLR certify a union as the exclusive

bargaining representative after showing proof of

majority representation thru union membership

cardswithoutconductinganelection?

A:No.The LC (InArts.256,257and258)provides

only

for

a

CE

as

the

mode

for

determining

the exclusive collectivebargaining representative

if there is a question of representation in an

appropriatebargainingunit.(1998BarQuestion)

Q:Whendoesdeadlockarise?

A: It arises when there is an impasse, which

presupposes reasonable effort at good faith

bargainingwhich,despitenoble intentions,didnot

concludeinanagreementbetweentheparties.

Q:Whatisdeadlockbarrule?

A:Apetitionforcertificationelection(PCE)cannot

be entertained if, before the filing of the PCE, a

bargainingdeadlock

to

which

an

incumbent

or

certified bargaining agent is a party, had been

submitted to conciliation or arbitration or had

becomethesubject ofavalidstrikeorlockout.

Q: What are the indications of a genuine

deadlock?

A:

1. Thesubmissionofthedeadlocktoathird

partyconciliatororarbitrator;and

2. The deadlock is the subject of a valid

noticestrikeorlockout.

Q:Capitol

Medical

Center

Ees

Association

Alliance

ofFilipinoWorkers(CMCEAAFW)emergedasthe

certifiedrepresentativeoftherankandfileEesat

Capitol Medical Center (CMC). Due to CMCs

refusaltobargaincollectively,CMCEAAFWfileda

noticeofstrikeandlateronstagedthestrikeafter

complying with the other legal reqts. The SLE

assumedjurisdiction over the case and issued an

order certifying the same to the NLRC for

compulsoryarbitration.Duringalloftheseevents

Capitol Medical Center Alliance of Concerned

employees (Ees)Unified Filipino Service Workers

filedapetitionforCEamongtheregularrankand

fileEesofCMC. ThepetitionforCEwasdismissed

and

the

CMC

was

directed

to

negotiate

with

CMCEAAFW.WasthedismissalofthePCEproper?

A: Yes, if the law proscribes the conduct of a CE

when there is a bargaining deadlock submitted to

conciliationorarbitration,withmorereasonshould

itnotbeconductedif,despiteattemptstobringan

Er to the negotiation table by the certified

bargaining agent, there was "no reasonable effort

ingoodfaith"ontheErtobargaincollectively.

Thecircumstancesinthiscaseshouldbeconsidered

as similar in nature to a "bargaining deadlock"

whennoCEcouldbeheld.Thisisalsotomakesure

that

no

floodgates

will

be

opened

for

the

circumvention of the law by unscrupulous Ers to

prevent any certified bargaining agent from

negotiatingaCBA.Sec.3,(RuleVIII),BookVofthe

IRRshouldbeinterpretedliberallysoastoincludea

circumstancewhereaCBAcouldnotbeconcluded

duetothefailureofonepartytowillinglyperform

its duty to bargain collectively. (CapitolMedical

CenterAllianceofConcernedEesv.Laguesma,G.R.

No.118915,Feb.4,1997)


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Q:Shouldthecertificationelectionproceedingsbe

suspended in view of the pending case for

cancellation of the unions certificate of

registration?

A: No,thependencyofacancellationcaseisnota

ground for the dismissal or suspension of arepresentation proceeding considering that a

registeredlabororganization(LO)continuestobea

legitimateoneentitledtoalltherightsappurtenant

theretountila finalvalidorder is issuedcancelling

suchregistration.

Oncea LOattains the statusofa LLO itbegins to

possess all of the rights and privileges granted by

law to such organizations. As such rights and

privileges ultimately affect areas which are

constitutionallyprotected,theactivitiesinwhichLO,

associationsandunionsareengageddirectlyaffect

the public interest and should be zealously

protected. (ProgressiveDevtCorp.v.SLE,G.R.No.

115077,April

18,

1997)

Q:Whatisnegotiationbarrule?

A:APCEcannotbeentertained if,beforethefiling

of thePCE, the duly recognized or certified union

has commenced negotiations with the Er in

accordancewithArt.250oftheLC.

Q:Whatiscertificationyearrule?

A: NoPCEmay be filed withinone year from the

date of a valid certification, consent, or runoff

electionorfromthedateofvoluntaryrecognition.

(4)RunoffElection

Q:Whatisarunoffelection?

A:Anelectionconductedwhen:

1. Anelectionwhichprovidesfor3ormore

choicesresults innoneofthecontending

unions receiving a majority of the valid

votescast,and

2. There are no objections or challenges

whichifsustainedcanmateriallyalterthe

results,provided

3. The total number of votes for all the

contendingunions is at least50%of the

numberofvotescast.(Sec.1,RuleX,Book

V,IRR)

4. Not one of the choices obtained the

majority of the valid votes cast (50%+ 1

secondmajority);

5. The two choices which garnered the

highest votes will be voted and the one

which garners the highest number of

votes will be declared the winner

provided they get the majority votes of

thetotalvotescast.

Q:Whoarethechoicesinarunoffelection?

A:Theunionsreceivingthehighestand2ndhighest

number of the votes cast. (Sec.2,Rule

X,

Book

V,

IRR)

Note: NoUnionshallnotbeachoice in the runoff

election

(5)RerunElection

Q:WhendoesRerunElectiontakeplace?

A: 1. Ifonechoicereceivesapluralityofthe

voteandtheremainingchoicesresultsina

tie;or

2.Ifallchoicesreceivedthesamenumber

ofvotes.

Note: Inbothinstances,thenounionisalsoachoice.

(5)ConsentElection

Q:Whatisaconsentelection?

A: An election voluntarily agreed upon by the

parties,withorwithout the interventionbyDOLE.

(Sec.1[h],RuleI,BookV,IRR)

Note: To afford an individual employeevoter an

informed choice where a local/chapter is the

petitioning union, the local/chapter shall secure itscertificateof creation at least 5working days before

thedateoftheconsentelection.(Sec.1,RuleVIII,Book

V,IRRasamendedbyDO40F03)

Q: What are the requisites before a labor union

canbedeclaredawinner(doublemajorityrule)?

A:

1. Majority of the eligible voters cast their

votes.

2. Majorityofthevalidvotescastisforsuch

union.

Q:Howtodeterminethedoublemajorityrule?

A:

1. Indeterminingtheeligiblevotescast(first

majority)includespoiledballots

2. In determining valid votes (second

majority), eliminate spoiled ballots but

includedthechallengedvotes.


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137







Q: A certification election was conducted among

the rankandfile Ees of Holiday Inn Manila

Pavilion Hotel. In view of the significant number

of segregated votes, contending unions, National

UnionofWorkersinHotels,RestaurantsandAllied

IndustriesManila Pavilion Hotel Chapter

(NUWHRAINMPHC) and Holiday Inn Manila

Pavilion

Hotel

Labor

Union

(HIMPHLU),

referred

thecasebacktotheMedArbitertodecidewhich

among those votes would be opened and tallied.

11 votes were initially segregated because they

were cast by dismissed Ees, albeit the legality of

theirdismissalwasstillpendingbeforetheCA. 6

othervotesweresegregatedbecausetheEeswho

cast them were already occupying supervisory

positions at the time of the election. Still 5 other

votes were segregated on the ground that they

were cast by probationary Ees and, pursuant to

the existing CBA, such Ees cannot vote.

NUHWHRAINMPHC further avers that HIMPHLU,

which garnered 169 votes, should not be

immediatelycertified

as

the

bargaining

unit,

as

the

opening of the 17 segregated ballots would push

thenumberofvalidvotescast to338,hence,the

169 votes which HIMPHLU garnered would be 1

vote short of the majority which would then

become170.

Was HIMPHLU able to obtain the required

majority for it to be certified as the exclusive

bargainingagent?

A: No, it is wellsettled that under the double

majority rule for there to be a valid certification

election,majorityofthebargainingunitmusthave

votedand

the

winning

union

must

have

garnered

majorityofthevalidvotescast.

Following the ruling that all the probationary Ees

votes should be deemed valid votes while that of

the supervisory Ees should beexcluded, it follows

thatthenumberofvalidvotescastwouldincrease.

Under Art. 256of the LC, the union obtaining the

majorityofthevalidvotescastbytheeligiblevoters

shall be certified as the sole exclusive bargaining

agent of all the workers in the appropriate

bargainingunit.Thismajorityis50%+1,inthiscase

at least170.HIMPHLUobtained169,clearly itwas

not able to obtain a majority vote. (NUWHRAIN

MPHCv.

SLE,

G.R.

No.

181531,

July

31,

2009)

Q: Distinguish certification election, consent

election, direct certification, and runoff and re

runelections.

A:

PurposeParticipationof

MedArbiter

CertificationElection

Todeterminethesole

andexclusivebargaining

agentofalltheEesinan

appropriatebargaining

unit

for

the

purpose

of

collective bargaining.

RequirespetitionforCE

filedbyaunionorEr.A

MedArbitergrantsthe

petitionandanelection

officerisdesignatedby

regionaldirectorto

supervisetheelection.

Note:MedArbitermay

determineifthereisErEe

relationshipandifthe

votersareeligible.

ConsentElection

Todeterminetheissueof

majorityrepresentation

ofalltheworkersinthe

appropriateCBunit

mainlyforthepurposeof

determiningthe

administratoroftheCBA

whenthecontracting

unionsufferedmassive

disaffiliationand

not

for

thepurposeof

determiningthe

bargainingagentfor

purposeofCB.

Heldbyagreementofthe

unionswithorwithout

theparticipationofthe

MedArbiter.

DirectCertification

ALOisdirectlycertified

asanappropriate

bargainingunitofa

companyuponshowing

thatpetitionissupported

byatleastamajorityof

theEesinthebargaining

unit.

Note: Directcertificationis

nolongerallowed.

MedArbiterdirectly

certifiesthatalabor

unionistheexclusiveCB

representativeoftheEes

ofanappropriate

bargainingunitwithout

holdingaCE,butmerely

onthebasisofevidence

ofinsupportofthe

unionsclaim

that

is

the

choiceofthemajorityof

theEes.

RunOffElection

Takesplacebetweenthe

unionswhoreceivedthe

twohighestnumberof

votesinaCEwith3or

morechoices,wherenot

oneoftheunions

obtainedthemajorityof

thevalidvotescast,

providedthetotalunion

votesisatleast50%of

the

votes

cast.

RerunElection

Takes place in 2

instances:

1.Ifonechoicereceivesa

plurality of the vote

and the remaining

choicesresults inatie;

or

2.If all choices received

the same number of


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USTGOLDENNOTES2011

LABORLAWTEAM:



votes.

Inboth instances, theno

unionisalsoachoice.

Note:Petition forcancellationof registration isnota

bar to a PCE. No prejudicial question shall be

entertained in a petition for certification election.(D.O.4003)

(7)AffiliationandDisaffiliationoftheLocalUnion

fromtheMotherUnion

Q:Howisalocalchaptercreated?

A: A duly registered federation or national union

may directly create a local/ chapter by issuing a

chartercertificate indicatingtheestablishmentofa

local/chapter.

1. Thechaptershallacquirelegalpersonality

only

for

purposes

of

filing

a

petition

for

certificationelectionfromthedateitwas

issuedachartercertificate

2. Thechapter shallbeentitled toallother

rightsandprivilegesofa legitimate labor

organization (LLO) only upon the

submissionofthefollowingdocumentsin

additiontoitschartercertificate:

a. Names of the chapters officers,

their addresses, and the principal

officeofthechapter

b. Chaptersconstitutionandbylaws

c. Where the chapters constitution

andbylawsare thesameas thatof

thefederationorthenationalunion,this fact shall be indicated

accordingly

3. The genuineness and due execution of

thesupportingrequirementsshallbe:

a. Certifiedunderoathbythesecretary

ortreasurerofthelocal/chapter,and

b. Attestedtobyitspresident(Sec.2[e],

Rule III,BookV, IRR,asamendedby

D.O.40F03)

Note:Under theLCand the rules, thepowergranted

to LOs to directly create a chapter or local through

chartering is given to a federation or national union

only,

not

to

a

trade

union

center.

(SMCEU

v.

San

Miguel Packaging Products Ees Union, G.R. No.

171153,Sep.12,2007)

Q:Whereistheapplicationforregistrationfiled?

A:

1. Independent labor unions, chartered

localsorworkersassociations It isfiled

with theRegionalOffice (RO).where the

applicant principally operates. It shallbe

processedbytheLaborRelationsDivision

attheRO.

2. Federations, national unions or workers

association operating in more than one

regionItisfiledwiththeBLRoftheRO,

butshallbeprocessedbytheBLR.

Q:WhatisthedutyoftheBLRafteraLOhadfiled

the necessary papers and documents for

registration?

A:ItbecomesmandatoryfortheBLRtocheckifthe

reqts under Art. 234 of the LC have been

sedulously complied with. If its application for

registration is vitiated by falsification and serious

irregularities,especiallythoseappearingontheface

oftheapplicationandthesupportingdocuments,a

LO should be denied recognition as a LLO.

(ProgressiveDevtCorp.PizzaHutv.Laguesma,G.R.

No.115077,April18,1997)

Q: Within what period shouldthe BLR act on the

applicationssubmittedbeforeit?

A: It shall act on all applications for registration

within10mdaysfromreceipteitherby:

1. Approvingtheapplicationand issuingthe

certificate of registration/acknowledging

thenotice/report;or

2. Denyingtheapplication/noticeforfailure

of the applicant to comply with the

requirementsforregistration/notice(D.O.

4003,RuleIV,Sec.4,seriesof2003)

Note:Allrequisitedocumentsshallbe:

1. Certified under oath by the secretary or

treasurer of the organization, as the case

maybeand

2. AttestedtoitbyitsPresident.

Q:MaytheBLRreviewtheissuanceofacertificate

ofregistration?

A: No. The BLR has the duty to review the

application for registration not the issuance of a

certificateofregistration.

Q:

Why

is

a

lesser

requirement

imposed

for

acharteredlocal?

A:Theintentofthelawinimposinglesserreqtsin

the case of branch or local of a registered

federation or national union is to encourage the

affiliationofa localunion inorder to increase the

local unions bargaining power respecting terms

and conditionsof labor. (ProgressiveDevtCorp v.

SLE,G.R.No.96425,Feb.4,1992)


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LABOR RELATIONS LAW

139







Q:Whataretherequirementsbeforeafederation

canbeissuedacertificateofregistration?

A: The application for registration of federations

and national unions shall be accompanied by the

followingdocuments:

1.

Astatement

indicating

the

name

of

the

applicant labor union, its principal

address,thenameofitsofficersandtheir

respectiveaddresses;

2.

The minutes of the organizational

meeting(s) and the list of Ees who

participatedinthesaidmeeting(s);

3. The annual financial reports if the

applicantunionhasbeen inexistencefor

1 or more years, unless it has not

collectedanyamountfromthemembers,

in which case a statement to this effect

shallbe

included

in

the

application;

4.

Theapplicantunion'sconstitutionandby

laws, minutes of its adoption or

ratification, and the list of the members

whoparticipatedinit.Thelistofratifying

members shall be dispensed with where

theconstitutionandbylawswas ratified

or adopted during the organizational

meeting(s). In such a case, the factual

circumstances of the ratification shall be

recorded in the minutes of the

organizationalmeeting(s);

5.

Theresolution

of

affiliation

of

at

least

10

LLOs, whether independent unions or

charteredlocals,eachofwhichmustbea

duly certified or recognized bargaining

agentintheestablishmentwhereitseeks

tooperate;and

6. The name and addresses of the

companies where the affiliates operate

and the list of all the members in each

company involved. (D.O. 4003, Rule, III,

Sec.2B,seriesof2003)

Q:Whataretherequirementsforaffiliation?

A: The report of affiliation of independently

registered labor unions with a federation or

national union shall be accompanied by the

followingdocuments:

1.

Resolution of the labor union's board of

directorsapprovingtheaffiliation;

2. Minutes of the general membership

meetingapprovingtheaffiliation;

3. Thetotalnumberofmemberscomprising

the labor union and the names of

memberswhoapprovedtheaffiliation;

4. Thecertificateofaffiliation issuedby the

federation in favor of the independently

registeredlaborunion;and

5. Written notice to the employer

concernedif

the

affiliating

union

is

the

incumbentbargainingagent. (D.O.4003,

Rule,III,Sec.7,seriesof2003)

Q:Whatistheeffectofaffiliation?

A:Thelaborunionthataffiliateswithafederationis

subjecttothelawsoftheparentbodyunderwhose

authority the local union functions. The

constitution, bylaws and rules of the mother

federation,togetherwiththecharteritissuestothe

local union, constitutes an enforceable contract

between them and between the members of the

subordinate union inter se. Thus, pursuant to the

constitutionand

by

laws,

the

federation

has

the

righttoinvestigateandexpelmembersofthelocal

union. (Villarv. Inciong,G.R.No.L5028384,April

20,1983)

Q: May a local union disaffiliate from the

federation?

A:

GR: A labor union may disaffiliate from the

mother union to form an independent union

only during the 60day freedom period

immediately preceding the expiration of the

CBA.

XPN: Even before the onset of the freedom

period,disaffiliationmaystillbecarriedout,but

such disaffiliation must be effected by the

majority of the union members in the

bargainingunit.

Note:Thishappenswhenthereisasubstantialshiftin

allegianceonthepartofthemajorityofthemembers

of the union. In such a case, however, the CBA

continues to bind the members of the new or

disaffiliated and independent union up to determine

the union which shall administer the CBA may be

conducted. (ANGLOKMU v. Samahan ng

Manggagawang

Nagkakaisa

sa

Manila

Bay

Spinning

MillsatJ.P.Coats,G.R.No.118562,July5,1996)

Q:Whatisthelimitationtodisaffiliation?

A: Disaffiliation should be in accordance with the

rulesandproceduresstatedintheconstitutionand

bylaws of the federation. A local union may

disaffiliatewithitsmotherfederationprovidedthat

thereisnoenforceableprovisioninthefederations


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USTGOLDENNOTES2011

LABORLAWTEAM:



constitution preventing disaffiliation of a local

union.(TropicalHutEesUnionv.TropicalHut,G.R.

Nos.L4349599,Jan.20,1990)

Note: A prohibition to disaffiliate in the Federations

constitutionandbylawsisvalidbecauseitisintended

foritsownprotection.

Q:Whatistheeffectofcancellationofregistration

ofafederationoranationalunion?

A:

GR: Itshalloperatetodivest its locals/chapters

oftheirstatusasLLO.

XPN: Locals/chapters retain status as LLO if

theyarecoveredbyadulyregisteredCBA.

Note Locals or chapters who retained status as LLO

shallbeallowed to registeras independentunions. If

they fail to register, they shall lose their legitimate

statusupontheexpirationoftheCBA.

Q: PSEA is a local union in Skylander company

which is affiliated with PAFLU. PSEA won the

certification election among the rank and file Ees

oftheSkylandercompanybutitsrivalunionPSEA

WATU protested the results. Pending the

resolution of such controversy, PSEA disaffiliated

withPAFLU andhenceaffiliated withNCWwhich

wassupportedbyitsmembers.Mayalocalunion

disaffiliatewithitsmotherfederationpendingthe

settlementofthestatusasthesoleandexclusive

bargainingagent?

A: Yes. The pendency of an election protest does

not bar the valid disaffiliation of the local union

which was supported by the majority of its

members.

The right of a local union to disaffiliate with the

federation in theabsenceofanystipulation in the

constitution and bylaws of the federation

prohibiting disaffiliation is well settled. Local

unionsremainasthebasicunitofassociation,free

toservetheirowninterestsubjecttotherestraints

imposedbytheconstitutionandbylawsofnational

federationandarefreetorenouncesuchaffiliation

upon the terms and conditions laid down in the

agreement which brought such affiliation to

existence.Inthecaseatbar,noprohibitionexisted

under the constitution and bylaws of the

federation.Hence,theunionmayfreelydisaffiliate

withthefederation.(PhilippineSkylandersv.NLRC,

G.R.No.127374,Jan.31,2002)

Q: Distinguish between an independently

registeredandunregisteredcharteredlocalunion.

A:

CHARTEREDLOCALUNION

Independently

RegisteredUnregistered

Howtoaffiliate?

Bysigningcontractof

affiliation

Byapplicationofwiththe

federationforthe

issuanceofacharter

certificatetobesubmittedtotheBLR

EffectofDisaffiliationtotheunion(local)

Wouldnotaffectitsbeing

aLLOandthereforeit

wouldcontinuetohave

legalpersonalityandto

possesallrightsand

privilegesofLLO.

WouldceasetobeLLO

andwouldnolonger

havethelegalpersonality

andtherightsand

privilegesgrantedbylaw

toLLO,unlessthelocal

chapteriscoveredbyits

dulyregisteredCBA.

EffectofDisaffiliationtotheCBA

AnexistingCBAwould

continuetobevalidas

theLOcancontinueadministeringthenCBA.

TheCBAwouldcontinue

tobevalid.Thelocal

chapterwillnotloseits

personality,unlessit

registersanew.

EntitlementtounionduesafterDisaffiliation

LOentitledtotheunion

duesandnotthe

federationfromwhich

theLOdisaffiliated.

Unionduesmayno

longerbecollectedas

therewouldnolongerbe

anylaborunionthatis

allowedtocollectsuch

unionduesfromtheEes.

Q:Whatistheformofthedecisionofthedenialof

applicationforregistration?

A:Itshallbe:

1. Inwriting

2. Stating in clear terms the reason for the

decision

3. Applicantunionmustbefurnishedacopy

ofsaiddecision.

Q:Isthedenialofregistrationappealable?

A:Yes.

1. Decisions of the Regional Office shall be

appealabletotheBLRandCA.

2. The BLRs decisions on cases appealed

from Regional Director arefinal and not

appealabletotheSLE.3. Decisions of the BLR denying the

registration of a LO (federation or

national union) is appealable to the SLE

within 10 days from receipt of the

decision,ongroundsof:

a. Graveabuseofdiscretion;or

b. Grossincompetence.

4. DecisionofSLEappealabletoCA.


14/64

LABOR RELATIONS LAW

141







Q: How is appeal taken with regard to denial or

cancellationofregistration?

A:

DENIALORCANCELLATIONOFREGISTRATION

ByRegionaloffice ByBLR

Transmitrecordswithin24hours

fromreceipt

of

the

Memo

of

Appeal

BLRwilldecideonthe

matterwithin20days

fromreceiptofthe

records

SLEdecidesonthematter

within20daysfrom

receiptofrecords

AppealtoCAviaRule65

Note: Appeal is by memo of appeal within 10 days

fromreceiptofnotice.

Q:Whocancelsthecertificateofregistration?

A: The certificate of registration of any LLO,

whethernationalor local,maybecancelledbythe

BLR, after due hearing, only on the grounds

specifiedinArt.239.(asamendedbyR.A.9481)

Q:What istheeffectofapetitionforcancellation

or ofunionregistration?

A: It shall not suspend the proceedings for

certification election (CE) nor shall it prevent the

filingofCE.

Incaseofcancellation,nothinghereinshallrestrict

the right of the union to seekjust and equitable

remediesintheappropriatecourts.

Q: Where is a petition for cancellation of

registration

or

application

for

voluntary

dissolutionfiled?

A:

1.

For legitimate independent labor unions,

local/chapter andworkers association

It shall be filed with the Regional Office

which issued itscertificateofregistration

orcreation.

2. Forfederations, national or industry and

tradeunioncentersItshallbefiledwith

theBLR. (Sec.1,RuleXIV,BookV, IRRas

amendedbyD.O.40F03)

Q:

Who

may

file

a

petition

for

cancellation

of

registration?

A:

1.

For legitimate individual labor union,

charteredlocalandworkersassociation

Any partyininterest may file a petition

for cancellation of registration if the

groundis:

a. Failure to comply with any of the

reqtsunderArt.234,237and238of

theLC.

b.

ViolationofanyprovisionunderArt.

239,LC.

2. For federations, national or industry

unions,trade

union

centers

Only

members of the labor organization (LO)

concerned may file if the grounds are

actions involving violations of Art. 241,

subjecttothe30%rule.

Q:Whatistheeffectofcancellationofregistration

if the cancellation is made in the course of the

proceedings?

A: Wherea laborunion isaparty inaproceeding

and later it loses its registration permit in the

course or during the pendency of the case, such

union may continue as party without need of

substitutionof

parties,

subject

however

to

the

understanding that whatever decision may be

renderedwillbebindingonlyuponthosemembers

oftheunionwhohavenotsignified theirdesireto

withdrawfromthecasebeforeitstrialanddecision

onthemerits.

Note: Rationale: Principle of agency is applied the

Eesaretheprincipals,andtheLOismerelyanagentof

the former, consequently, the cancellation of the

unionsregistrationwouldnotdeprivetheconsenting

memberEesoftheirrighttocontinuethecaseasthey

areconsideredastheprincipals.

Q:What

are

the

grounds

for

cancellation

of

union

registration?

A:

1. Misrepresentation, false statement or

fraudinconnectionwiththe:

a.

Adoption or application of the

constitution and bylaws or

amendmentsthereto

b. Minutesofratificationand

c. Listofmemberswhotookpartinthe

ratification;

d.

Electionofofficers

e.

Minutes of the election of officers

andf. Listofvoters(Art.239asamended)

2. Voluntary dissolution by the members.

(asamendedbyR.A.9481)

Note:Apronouncementastothelegalityofthestrike

isnotwithinthemeaningofArt.239oftheLC.


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Q: What are the prohibited grounds for

cancellationofunionregistration?

A:

1. TheinclusionasunionmemberofEeswho

are outside the bargaining unit shall not

be a ground to cancel the union

registration. The ineligible Ees are

automatically deemd removed from thelist of membership of the union as.(Art.

245A asamendedbyRA9481)

2. The affiliation of the rankandfile and

supervisory unions operating within the

same establishment to the same

federationornationalunionshallnotbea

ground to cancel registration of either

union. (Sec. 6, Rule XIV, Book V, as

insertedbyD.O.40F03)

Q: How is voluntary cancellation of registration

made?

A:

Registration may be cancelled by the

organizationitselfprovided:

1. At least of its general membership

votes to dissolve the organization, in a

meetingdulycalledforthatpurpose;and

2. An application to cancel registration is

thereaftersubmittedbytheboardofthe

organization,attestedbyitspresident.

Q: What are the reportorial requirements

required to be submitted by a legitimate labor

organization(LLO)?

A: The following documents are required to be

submittedtoBLRbytheLLOconcerned:

1. Within 30 days from adoption or

ratification of the constitution and by

laws(CBL)oramendmentsthereto:

a. CBLoramendmentsthereto

b. Minutesofratification

c. Listofmemberswhotookpartinthe

ratification of the constitution and

bylaws;

2. Within 30 days from date of election or

appointment:

a. Listofelectedandappointedofficers

and agents entrusted with the

handingofunionfunds

b. Minutesofelectionofofficers

c. Listofvoters

3. Annual financial report within 30 days

afterthecloseofeveryfiscalyear

4. List of members at least once a year or

wheneverrequiredbytheBureau.(Sec.1,

RuleV,BookV, IRR,asamendedbyD.O.

40F03)

Note:Failuretosubmitreportorialrequirements isno

longeragroundforcancellationbut shall subject the

erring officers or members to suspension, expulsion

from membership, or any appropriate penalty (Art.

242A,

as

inserted

by

R.A.

9481).

Q:Whatisthesuccessor ininterestdoctrine?

A:

GR: It is when an Er with an existing CBA is

succeeded by another Er, the successorin

interestwho is thebuyer ingood faithhasno

liability to the Ees in continuing employment

and the bargaining agreement because these

contractsareinpersonam.

XPNs:

1. When the successorininterest expressly

assumesan

obligation;

2. The sale is a device to circumvent the

obligation;or

3. Thesaleortransferismadeinbadfaith.

(a)SubstitutionaryDoctrine

Q:Whatisthesubstitutionarydoctrine?

A: It iswherethereoccursashift in theEesunion

allegiance after the execution of a collective

bargaining (CB) contract with the Er, the Ees can

change their agent (labor union) but the CB

contractwhich is still subsisting continues to bind

the

Ees

up

to

its

expiration

date.

They

may

however, bargain for the shortening of said

expirationdate.

Note: The Er cannot revoke the validly executed CB

contract with their Er by the simple expedient of

changing theirbargainingagent.Thenewagentmust

respectthecontract.(BenguetConsolidatedInc.v.BCI

EesandWorkersUnionPAFLU,G.R.No.L24711,April

30,1968)

Itcannotbe invokedtosupportthecontentionthata

newlycertifiedCBagentautomaticallyassumesallthe

personalundertakingsoftheformeragentliketheno

strikeclauseintheCBAexecutedbythelatter.

(8)UnionDuesandSpecialAssessments

(a)UnionDues

Q:Whatareuniondues?

A:Theseareregularmonthlycontributionspaidby

the members to the union in exchange for the


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benefits given to themby theCBA and to finance

theactivitiesoftheunioninrepresentingtheunion.

Q:Whatischeckoff?

A:ItisamethodofdeductingfromanEespayata

prescribedperiod, the amounts due the union for

fees,finesandassessments.

Deductionsforunionservicefeesareauthorizedby

law and do not require individual checkoff

authorizations.

Q:Whatisthenatureandpurposeofcheckoff?

A:Unionduesarethelifebloodoftheunion.

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

cooperativeundertakings.(Art.

277[a])

Q:Whataretherequisitesofavalidcheckoff?

A:

GR: No special assessments, attys fees,

negotiationfeesoranyotherextraordinaryfees

maybecheckedofffromanyamountduetoan

employee (Ee) without individual written

authorizationdulysignedbytheEe.

Theauthorizationshouldspecificallystatethe:

1.

Amount

2.

Purpose&

3.

Beneficiary

of

the

deduction.

XPNs:

1. FormandatoryactivitiesundertheLC

2.

Foragencyfees

3.

Whennonmembersoftheunionavailof

thebenefitsoftheCBA:

a. Nonmembers may be assessed

unionduesequivalenttothatpaidby

unionmembers;

b. Only by board resolution approved

by majority of the members in

general meeting called for the

purpose.

(b)SpecialAssessments

Q:Whatarespecialassessmentsorextraordinary

fees?

A:Theseareassessmentsforanypurposeorobject

other than those expressly provided by the labor

organizationsconstitutionandbylaws.

Q: What are the requisites for a valid levy of

specialassessmentorextraordinaryfees?

A:

1. Authorization by a written resolution of

themajorityofallmembersatthegeneral

membershipmeetingdulycalled for that

purpose;

2. Secretarys record of the minutes of the

meeting,whichmustincludethe:

a.

Listofmemberspresent

b.

Votescast

c.

Purposeofthespecialassessments

d. Recipientofsuchassessments;

3. Individualwrittenauthorization tocheck

offduly signedby theEeconcerned to

levysuchassessments.

Q: What is the effect of failure to strictly comply

therequirementssetbylaw?

A:

It

shall

invalidate

the

questioned

special

assessments. Substantial compliance of the

requirementsisnotenoughinviewofthefactthat

the special assessment will diminish the

compensationofunionmembers.(Palacolv.Ferrer

Calleja,G.R.No.85333,Feb.26,1990)

Q:Whohasjurisdictionovercheckoffdisputes?

A: Being an intraunion dispute, the Regional

Director of DOLE has jurisdiction over check off

disputes.

Q:Distinguishcheckofffromspecialassessments.

A:

Checkoff SpecialAssessment

Howapproved

(UnionDues)

Byobtainingtheindividual

writtenauthorizationduly

signedbytheEewhich

mustspecify:

1.Amount

2.Purpose

3.Beneficiary

Bywrittenresolution

approvedbymajorityof

allthemembersatthe

meetingcalledforthat

purpose.

Exceptiontosuchrequirement


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LABORLAWTEAM:



(Agencyfees)

Notnecessarywhen:

1. Formandatoryactivities

undertheLC

2. Foragencyfees

3. Whennonmembersof

theunionavailofthe

benefitsoftheCBA:a.Saidnonmembers

maybeassessed

unionduesequivalent

tothatpaidbyunion

members;

b.OnlybyBoard

resolutionapproved

bymajorityofthe

membersingeneral

meetingcalledforthe

purpose

Noexception;written

resolutionismandatory

inallinstances.

Q: Are Ees who are members of another union

consideredfreeriders?

A: No. When the union bids to become the

bargaining agent, it voluntarily assumes the

responsibilityofrepresentingalltheEes.

(9)AgencyFees

Q:Whatisanagencyfee?

A:Itisanamountequivalenttouniondues,whicha

nonunion member pays to the union because he

benefitsfromtheCBAnegotiatedbytheunion.

Note:AgencyfeecannotbeimposedonEesalreadyin

the service and are members of another union. If aclosed shop agreement cannot be applied to them,

neithermayanagency fee,asa lesser formofunion

security,be imposed to them.Paymentbynonunion

membersofagencyfeesdoesnotamounttoanunjust

enrichment basically the purpose of such dues is to

avoid discrimination between union and nonunion

members.

Q:WhataretherequisitesforassessmentofAgency

fees(Art.248[e],LC)?

A:

1. Theemployeeispartofthebargainingunit

2. Heisnotamemberoftheunion

3. HepartookofthebenefitsoftheCBA

Note: TheindividualauthorizationrequiredunderArt.

242, par. O of the LC shall not apply to the non

members of the recognized collective bargaining

agent.

Q:Distinguishunionduesfromagencyfees.

A:

UnionDues AgencyFee

Isdeductedfrom

membersforthe

paymentofuniondues

Isdeductedfromnon

membersofthe

bargainingagent(union)

fortheenjoymentofthe

benefitsundertheCBA.

Maynotbededucted

fromthesalariesoftheunionmemberswithout

thewrittenconsentof

theworkersaffected.

Maybedeductedfrom

thesalaryoftheEes

withouttheirwritten

consent.

2.RIGHTTOCOLLECTIVEBARGAINING

Q:Whatiscollectivebargaining(CB)?

A:

1. It is the process of negotiation by an

organization or group of workmen, in

behalfofitsmembers,withtheemployer

(Er),

concerning

wages,

hours

of

work,

and other terms and conditions of

employmentand

2. Thesettlementofdisputesbynegotiation

betweenanErand the representativeof

hisemployees(Ee)

3. It is theobligation tomeetand convene

promptly andexpeditiously ingood faith

for the purpose of negotiating an

agreementwith respect to wages, hours

of work and all other terms and

conditions of employment including

proposals foradjustinganygrievancesorquestions arising under such agreement

and executing a contract incorporating

such agreements if requested by either

partybutsuchdoesnotcompelanyparty

to agree to a proposal or to make any

concession.(Art.252,LC)

Note:

GR:Nocourtoradministrativeagencyorofficial

shallhavethepowertosetorfixwages,ratesof

pay,hoursofwork,orothertermsandconditions

ofemployment

XPNs:AsotherwiseprovidedundertheLC:

1. National Wages and Productivity

CommissionandRTWPBastowagefixing.

(Art.99and122,LC)

2. NCMB and NLRC as to wage distortion.

(Art.124,LC)

3. SLEandPresidentof thePhilippinesas to

certification and assumption of powers

overlabordisputes.(Art.236[g],LC)


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Q:Whatisthepurposebehindthisrule?

A: It is toencourageatrulydemocraticmethodof

regulatingtherelationsbetweentheemployersand

employeesbymeansofagreementsfreelyentered

intothroughCB.

Q:Who

are

the

parties

to

aCB?

A:

1.

Employer

2.

Employees, represented by the exclusive

bargainingagent

Q: What are the jurisdictional preconditions in

collectivebargaining?

A:

1. Possession of the status of majority

representation of the employees

representative inaccordancewithanyof

themeans

of

selection

or

designation

providedfortheLaborCode

2. Proofofmajorityrepresentation

3. AdemandtobargainunderArt.250(a)of

the LC. (Kiok Loy v. NLRC, G.R. No. L

54334,Jan.22,1986)

a.DutytoBargainCollectively

Q: When does the duty of the employer (Er) to

bargaincollectivelyarise?

A:OnlyaftertheunionrequeststheErtobargain.If

thereisnodemand,theErcannotbeindefault.

Note: Where a majority representative has been

designated, it is an ULP for the Er, as a refusal to

collectively bargain, to deal and negotiate with the

minority representative to the exclusion of the

majorityrepresentative.

Wherethereisalegitimaterepresentationissue,there

isnodutytobargaincollectivelyonthepartoftheEr

(LakasngmgaManggagawangMakabayanv.Marcelo

Enterprises,G.R.No.L38258,Nov.19,1982)

Q: What is a collective bargaining agreement

(CBA)?

A: It isacontractexecuteduponrequestofeither

theErortheexclusivebargainingrepresentativeof

theEes incorporating theagreementreachedafter

negotiationswithrespecttowages,hoursofwork,

terms and conditions of employment, including

proposals foradjustinganygrievanceorquestions

undertheagreement.

Note: The certification of the CBA by the BLR is not

requiredtomakesuchcontractvalid. Once it isduly

enteredintoandsignedbytheparties,aCBAbecomes

effectiveasbetweenthepartieswhetherornotithas

been certified by the BLR. (Liberty Flour Mills Ees

Association v. Liberty FlourMills,G.R.Nos.5876870,

Dec.29,1989)

Q:Whatisazipperclause?

A: It isastipulation inaCBA indicating that issues

that could have been negotiated upon but not

contained in the CBA cannot be raised for

negotiationwhentheCBAisalreadyineffect.

ACBA isnotanordinary contractbutone impressed

with public interest, onlyprovisions embodied in the

CBA should be so interpreted and complied with.

Where aproposal raisedbya contractingparty does

not findprint in theCBA, it isnotapart thereofand

the proponent has no claim whatsoever to its

implementation. (SMTFMUWP v. NLRC , G.R. No.

113856,Sept.

7,

1998)

Q:Whenshallbargainingcommence?

A: It commences within 12 months after the

determinationandcertificationoftheEesexclusive

bargainingrepresentative.(certificationyear)

Q:WhatistheprocedureinCB?

A:Whenapartydesirestonegotiateanagreement:

1. It shall serve a written notice upon the

otherpartywithastatementofproposals

2.

Reply by the other party shall be madewithin10dayswithcounterproposals

3.

In case of differences, either party may

request for a conference which must be

heldwithin10calendardaysfromreceipt

ofrequest

4.

If not settled, NCMB may intervene and

encourage the parties to submit the

disputetoavoluntaryarbitrator

5. Ifnot resolved, thepartiesmayresort to

any other lawful means (either to settle

the dispute or submit it to a voluntary

arbitrator).

Note:DuringtheconciliationproceedingintheNCMB,

the parties are prohibited from doing any act which

may disrupt or impede the early settlement of

disputes.(Art.250[d],LC)

Q:WhatarethestagesinCB?

A:


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LABORLAWTEAM:



1. Preliminary process: Sending a written

notice for negotiation which must be

clearandunequivocal

2. Negotiationprocess.

3. Execution process: The signing of the

agreement

4. Publication for at least 5 days before

ratification5. Ratification by the majority of all the

workers in the bargaining unit

represented in the negotiation (not

necessaryincaseofarbitralaward)

6. Registrationprocess.

7. Administrationprocess: TheCBA shallbe

jointly administered by the management

andthebargainingagentforaperiodof5

years.

8. InterpretationandApplicationprocess.

Q: Does a petition for cancellation of a unions

certificate of registration involve a prejudicial

questionthat

should

first

be

settled

before

parties

couldberequiredtocollectivelybargain?

A: No. Apendingcancellationproceeding isnota

bartosetmechanicsforcollectivebargaining(CB).

Ifacertificationelectionmaystillbeheldeven ifa

petition forcancellationofaunionsregistration is

pending,moresothattheCBprocessmayproceed.

Themajoritystatusof theunion isnotaffectedby

the cancellation proceedings. (Capitol Medical

Centerv.Trajano,G.R.No.155690,June30,2005)

Q: What is the duty to bargain collectively when

thereisnoCBA?

A:Itistheperformanceofamutualobligation:

1. To meet and convene promptly and

expeditiouslyingoodfaith(GF)

2. For the purpose of negotiating an

agreementwith respect towages, hours

of work and all other terms and

conditionsofemployment

3. Including proposals for adjusting any

grievances or questions arising under

suchagreement;and

4. Toexecuteacontract incorporatingsuch

agreements if requestedbyeitherparty.

(Art.252)

Q:Whatarethelimitationstothedutytobargain

collectively?

A:

1. Suchduty doesnot compel anyparty to

agree to a proposal or to make any

concession.

2. Parties cannot stipulate terms and

conditions of employment which are

below theminimum reqtsprescribedby

law.

Q:Mayeitherpartybargaintoanimpasse?

A:Itdepends:

1. Where the subject of a dispute is a

mandatory bargaining subject, either

partymaybargain toan impasseas long

ashebargainsinGF.

2. Where the subject is nonmandatory, a

partymaynot insist inbargaining to the

point of impasse. His instance may be

construedasevasionofdutytobargain.

Q:Whatisthetestofbargaininginbadfaith?

A:

There is no perfect test of good faith (GF) in

bargaining. The GF or BF is an inference to be

drawnfromthefactsandislargelyamatterforthe

NLRCsexpertise.ThechargeofBFshouldberaised

whilethebargainingisinprogress.

Note:WiththeexecutionoftheCBA,BFcannolonger

be imputed upon any of the parties thereto. All

provisions in the CBA are supposed to have been

jointly and voluntarily incorporated therein by the

parties. This is not a case where private respondent

exhibited an indifferent attitude towards CB because

the negotiations were not the unilateral activity of

petitionerunion.TheCBAisgoodenoughthatprivate

respondent exerted reasonable effort of GFbargaining. (Samahang Manggagawa sa Top Form

ManufacturingUnited Workers of the Phils v. NLRC,

G.R.No.113856,Sept.7,1998)

Q: Does an Ers steadfast insistence to exclude a

particular substantive provision in the

negotiations for a CBA constitute refusal to

bargainorbargaininginBF?

A: No. This isnodifferent fromabargaining

representatives perseverance to include one that

they deem of absolute necessity. Indeed, an

adamant insistenceonabargainingpositiontothe

point where the negotiations reach an impassedoesnotestablishbadfaith.Obviously,thepurpose

ofCBisthereachingofanagreementresultingina

contract bindingon the parties; but the failure to

reach an agreement after negotiations have

continued for a reasonable period does not

establish a lack of good faith. The statutes invite

and contemplate a collective bargaining contract,

but theydo not compel one. The duty to bargain

does not include the obligation to reach an


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agreement. While the law makes it an obligation

for theErand theEes tobargain collectively with

eachother, such compulsion does not include the

commitmenttoprecipitatelyacceptoragreetothe

proposalsof theother. All itcontemplates is that

bothparties shouldapproach thenegotiationwith

anopenmindandmakereasonableefforttoreach

acommon

ground

of

agreement.

(Union

of

Filipro

Ees v.Nestle Phils., G.R.Nos. 15893031,Mar. 3,

2008)

Q:Whatisadeadlock?

A: It is synonymous with impasse or a standstill

which presupposes reasonable effort at GF

bargaining but despite noble intentions does not

concludeanagreementbetweentheparties.

Q: Incaseofdeadlock intherenegotiationofthe

CBA, what are the actions that may be taken by

theparties?

A:Thepartiesmay:

1. Callupon theNCMB to intervene for the

purpose of conducting conciliation or

preventivemediation;

2. Referthematterforvoluntaryarbitration

orcompulsoryarbitration;

3. Declare a strike or lockout upon

compliance with the legal reqts (This

remedyisaremedyoflastresort).

Q: May economic exigencies justify refusal to

bargain?

A: No. An employer is not guilty of refusal to

bargain by adamantly rejecting the unions

economicdemandswhereheisoperatingataloss,

ona lowprofitmargin,or inadepressed industry,

as longashe continues tonegotiate.But financial

hardship constitutes no excuse for refusing to

bargaincollectively.

Q: What is the duty to bargain collectively when

thereisaCBA?

A:

1. When there isaCBA theduty tobargain

collectivelyshall

also

mean

that

neither

party shall terminate nor modify such

agreementduringitslifetime.

2. Eitherpartycanserveawrittennoticeto

terminate or modify the agreement at

least60dayspriortoitsexpirationdate.

3. Itshallbethedutyofbothpartiestokeep

the status quo and to continue in full

forceandeffectthetermsandconditions

of theexistingagreementduring the60

dayperiodand/oruntilanewagreement

isreachedbytheparties.(Art.253,LC)

Q:WhatistheautomaticrenewalclauseofCBAs?

A:AlthoughaCBAhasexpired,itcontinuestohave

legaleffects

as

between

the

parties

until

anew

CBA

hasbeenentered into(Pier&ArrastreStevedoring

Services, Inc. v. Confessor, G.R. No. 110854,

February 13, 1995). This is so because the law

makes it a duty of the parties to keep the status

quo and to continue in full effect the terms and

conditions of the existing agreement until a new

agreementisreachedbytheparties.(Art.253,LC).

(2008BarQuestion)

Q:Whatmaybedoneduringthe60dayfreedom

period?

A:

1.

Alabor

union

may

disaffiliate

from

the

mother union to form a local or

independentuniononlyduringthe60day

freedom period immediately preceding

theexpirationoftheCBA.

2. Eitherpartycanserveawrittennoticeto

terminate or modify agreement at least

60dayspriortoitsexpirationperiod.

3. A petition for certification election may

befiled.

Q:WhentofileCBA?

A:Within30daysfromexecutionofCBA.

Q:Whataretherequirementsforregistration?

A: The application for CBA registration shall be

accompaniedbytheoriginaland2duplicatecopies

ofthefollowingreqts:

1. CBA

2. A statement that theCBA wasposted in

at least 2 conspicuous places in the

establishment concerned for at least 5

daysbeforeitsratification

3. Statement that the CBA was ratified by

themajorityof theEes in thebargaining

unit.

Note: The following documents must be certified

under oath by the representative of the Er and the

laborunion. Noother document shallbe required in

theregistrationoftheCBA.

Q:Whatisasingleenterprisebargaining?


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A: It involves negotiation between one certified

laborunionandoneEr.Anyvoluntarilyrecognized

or certified labor union may demand negotiations

with its Er for terms and conditions of work

coveringEesinthebargainingunitconcerned.

Q:WhatisamultiErbargainingscheme?

A: It involves negotiation between and among

severalcertifiedlaborunionsandErs.

Q:WhatisthedurationofaCBA?

A:

1. Withrespecttotherepresentationaspect

(referstothe identityandmajoritystatus

of theunion that negotiated the CBA as

the exclusive bargaining representative):

5years

2. Withrespecttoallotherprovisions(refers

to the restof theCBA,economicaswell

as noneconomic provisions other than

representationalprovisions):3yearsafter

theexecutionoftheCBA

Q:WhataretheeconomicprovisionsofaCBA?

A:

ust labor relations- golden notes 2011

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