1. What is collective bargaining? Collective bargaining has been defined as the process of negotiation between an ER or ER’s and the EE’s organization or union to reach an agreement on the terms and conditions of employment for a specified period. It covers the entire range of organized relationships between ER’s and EE’s represented by union, this includes the negotiation, administration, interpretation or application of the labor contract. (Alcantara)
2. What are the most important aims or aspects of collective bargaining?
The most important aims are :
a. To establish industrial peace by enabling capital and labor to resolve their disputes and controversies on terms mutually acceptable and satisfactory to themselves.
b. To enhance industrial efficiency through speedy resolution of labor disputes concerning fixing of wages, working hours and other terms and conditions of contracts incorporating such agreements, and the adjustment or settlement of any grievance arising thereunder.
c. To establish benefits of labor higher or greater than those fixed by law. The various aspects are :
d. The duty of the parties to bargain and negotiate on proposals concerning wages, working hours and other terms and conditions of employment.
e. The duty of the parties to adhere to statutory standards of good faith, promptness and expeditious actions.
f. The duty to refrain from unilateral changes concerning matters subject to bargaining.
g. In case there is an existing CBA, the duty to adhere faithfully to its terms and not terminate or modify the same during its period of effectivity. (Alcantara)
3. What is the nature and purpose of collective bargaining?
Collective bargaining is a democratic framework to stabilize the relation between labor and management to create a climate of sound and stable industrial peace. It is a mutual responsibility of the ER and the union and is their legal obligation. (loy vs. NLRC)
4. What are the jurisdictional preconditions of collective bargaining?
The mechanics of collective bargaining is set in motion only when the following jurisdictional preconditions are present :
a. Possession of the status of majority representation of the EE’s representative in accordance with any of the means of selection or designation provided by the Labor Code.
b. Proof of majority representation.
c. Demand to bargain under Art. 250. (Id.) 6.2 Bargainable Issues
Obligation to Negotiate Mandatory Bargaining Subjects
1. It is the obligation of the ER and the EE’s representative to bargain with each other with respect to “wages hours and other terms and conditions of employment”. They are statutory of “mandatory” proposals requiring the party to whom they are made to bargain in good faith concerning them. (Azucena) However, the law does not compel agreements between ER’s and EE’s and neither party is obligated to yield even on a mandatory bargaining subject, for as long as they bargain in good faith. (Id.)
2. What are considered mandatory subjects of bargaining?
a. Wages and other types of compensation b. Working hours
c. Vacations and holidays d. Bonuses
e. Pensions and retirement plans f. Seniority
g. Transfer h. Lay-off
i. EE’s workloads
j. Work rules and regulations k. Rent company houses
l. Union security arrangements (Azucena) m. No-Lockout Clause
n. Clause fixing contractual term.
Non-Mandatory Subjects
1. The right to bargain on a non-mandatory subject does not include to right to insist on the inclusions of the non-mandatory subject in the CBA as a condition to any agreement. (Azucena)
2. Give some examples of non-mandatory subjects : a. Management prerogative clauses.
b. Union discipline clause.
c. Arbitration, strike vote or no-strike clauses.
6.3 Bargaining Procedure Private Procedure
Art. 251 : In the absence of the CBA, it shall be the duty of the ER and the representatives of the EE’s to bargain collectively.
Code Procedure
Describe the procedure in collective bargaining : In the absence of an agreement or other voluntary arrangement providing for a more expeditious manner of collective bargaining, the following procedures shall be observed :
1. When a party desires to negotiate an agreement, it shall serve a written notice upon the other with a statement of its proposals. The other party shall make a reply thereto not later than 10 calendar days from the receipt of such notice.
2. Should difference arise on the basis of such notice and reply, either party may request a conference which shall begin not later than 10 calendar days from date of request.
3. If the dispute is not settled, the Board shall intervene upon request of either or both 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.
4. During the conclusion proceedings in the Board, the parties are prohibited from doing any act which may disrupt or impede the early settlement of the dispute.
5. The Board shall exert efforts to settle disputes amicably and encourage the parties to submit their case to voluntary arbitration. (Art. 250)
6. The parties shall at the request of either of them, make available such up-to-date financial information on the economic situation of the undertaking, as is material and necessary for meaningful negotiations.
Where the disclosure of some of the information could be prejudicial to the undertaking, its communication may be made condition upon a commitment that it would be regarded as confidential to the extent required. (Sec. 5, Rule XIII, Book V, IRR’s)
7. Information and statements made at conciliation proceedings shall be treated as privilege communication and shall not be used as evidence in the Commission. Conciliators and similar officials shall not testify in
any court or body regarding any matters taken up at conciliation proceedings conducted by them. (Art. 233)
8. The agreement negotiated by the EE’s bargaining agent should not be ratified or approved by the majority of all the workers in the bargaining unit. (Art. 231) [Ratification in not needed when the CBA is a product of an arbitral award. The arbitral award may result from voluntary arbitration or from the secretary’s assumption of jurisdiction or certification of the dispute to the NLRC. (Azucena)]
A. NATURE OF PROCEDURE
Collective bargaining does not end with the execution of an agreement. It is a continuous process. The duty to bargain imposes on the parties during the term of their agreement the mutual obligation “ to meet and confer promptly and expeditiously and in good faith for the purpose of adjusting any grievances or question arising under such agreement. (RSB vs.
CIR)
Duty to Bargain
Explain the meaning of the duty to bargain effectively : The duty to bargain collectively means the performance of a mutual obligation to meet and confer promptly and expeditiously and 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 grievances or questions arising under such agreement and executing a contract incorporating such agreement if requested by either party, but such duty does not compel any party to agree to a proposal or to make any concession. (Art. 252) In case there is an existing collective contract, the duty shall include the obligation to adhere faithfully to its terms and not terminate or modify the same during its period of effectivity. (Art.
253)
6.4 The CBA
What is the CBA? It is a negotiated contract between a legitimate labor organization and the ER concerning wages, hours of work and all other terms and conditions of employment in a bargaining unit, including mandatory provisions for grievances and arbitration machineries. (Sec. 1, Rule VI, Book V, IRR’s)
Registration - Period, Requirements and Actions
Art. 231 : Within 30 days from the execution of a CBA the parties shall submit copies of the same directly to the Bureau of Regional Office of the DOLE for registration accompanied with verified proofs of its posting in 2 conspicuous places in the place of work and ratification by the majority of all the workers in the bargaining unit. The Bureau of Regional Offices shall act upon the application for registration of such CBA within 5 calendar days from the receipt thereof. The Regional office shall furnish the Bureau with a copy of the CBA within 5 days from its submission. The Bureau shall maintain a file of all CBA’s and other related agreements and records of settlements of labor disputes and copies of orders, decisions of voluntary arbitrators. The file shall be open and accessible to interested parties under conditions prescribed by the Sec. of Labor and Employment.
Contract Beneficiaries
1. When a CBA is entered into by the union representing the EE’s and the ER, even the non-member EE’s are entitled to the benefits of the contract. (Rivera vs. SMC)
2. A CBA provides for the deduction of union dues from non-member of the bargaining union. Is the stipulation valid? Yes. It provides for the collection of an agency fee from the members who accept and enjoy the benefits attained through the efforts of the bargaining agent. The non-union members should not be unjustly enriched at the expense of the bargaining agent. (Alcantara)
3. How about if the stipulation was not provided for in the CBA but was merely requested by the bargaining union from the ER? The stipulation is still valid. EE’s of an appropriate collective bargaining unit who are not members of the recognized collective agent may be assessed a reasonable fee equivalent to the dues and other fees paid by members of the recognized collective bargaining agent, if such union members accept the benefits under the CBA. The individual authorization required under Art. 241 shall not apply to the non-members recognized collective bargaining agent. (Art. 248) The law does not impose as a condition for the collection of the agency fee that the same be provided in the CBA, the basis of the union’s right to the agency fee is quasi-contractual, not contractual. (Alcantara)
4. The CBA negotiated by union Y provides for wages to EE’s in the production and maintenance department. To avoid discrimination, the company also granted the increases to EE’s in the administrative and sales department. Union Y now demands an agency fee from the EE’s of these departments. Is such demand valid?
No. In the 1st place, the EE’s in the latter 2 departments do not belong to the bargaining unit covered by the agreement. In the 2nd place, the wage increases were not obtained through the efforts of union Y. (Id.)
Contract Administration and Enforcement A. NATURE OF CONFLICT
1. While the terms and conditions of a CBA constitute the law between the parties, it is not, however, an ordinary contract to which is applied the principles of law governing ordinary contracts. A CBA, as a labor contract within the contemplation of Art. 1700, NCC which governs the relations between labor and capital, is not merely contractual in nature but impressed with public interest, thus it must yield to the common good. As such, it must be construed liberally rather than narrowly and technically, and the courts must place a practical and realistic construction upon it, giving due consideration to the context in which it is negotiated and the purpose which it is intended to serve. (Davao Integrated vs. Abarquez) However, like ordinary contracts, ignorance of its terms by either party, including the EE’s who are principals of the bargaining union, will not justify the breach of the contract. (Manalang vs. Artex)
2. The CBA was not formally ratified by the majority of the workers in the bargaining unit. However, the workers received and enjoyed the
benefits under the CBA. Can the EE’s later on have the contract invalidated for lack of formal ratification?
No. The EE’s have already enjoyed benefits from it. They cannot receive benefits under provisions favorable to them and later insist that the CBA is void simply because other provisions turn out not to the liking of certain EE’s. (Planters Product vs. NLRC)
3. Are wage increases paid by the ER pursuant to laws and wage orders compliance with the wage increases provided for under a CBA?
No. In the absence of a provision of law or the CBA to the effect that benefits provided by the former encompass those provided by the latter, benefits derived from either law or a contract should be treated as separate from each other. A CBA is a contractual obligation imposed by law. EE benefits derived from law are exclusive of benefits arrived through negotiation and agreement unless otherwise provided by the agreement itself or by law. (Meycauayan College vs. Drilon)
B. GRIEVANCE PROCEDURE – DISPUTE SETTLEMENT: ISSUES AND INDIVIDUAL GRIEVANCE
1. Art. 260 : The parties to the CBA shall include therein provisions that will ensure the mutual observance of its terms and conditions. They shall establish machinery for the adjustment and resolution of grievances arising from the interpretation of their CBA and those arising from the interpretation or enforcement of company personnel police.
All grievances submitted to the grievance machinery which are not settled within 7 calendar days from its date of submission shall automatically be referred to voluntary arbitration prescribed in the CBA.
2. Art. 225 : However, an individual EE or group of EE’s shall have the right at any time to present grievances to their ER.
3. J, a member of a union has been certified as the sole and exclusive bargaining representative of the EE’s, sends a letter to management requesting, in view of inflation, for an increase in his wages. Is this allowed?
Yes. Although there may be an exclusive bargaining agent, an individual EE or group of EE’s have the right to present grievances to their ER. It would have been different if J demanded for wage increases for the other EE’s. (Alcantara)
C. CONTRACT DURATION AND RENEWALS 1. Art. 253-A :
a. Any CBA that the parties may enter into shall, insofar as the representation aspect is concerned; be for a term of 5 years. No petition questioning the majority status of the incumbent bargaining agent shall be entertained and no certification election shall be conducted by the DOLE outside of the 60-day period immediately before the expiry date of the CBA.
b. All other provisions of the CBA shall be renegotiated 3 years after its execution.
c. Any agreement on such other provisions of the CBA entered into within 6 months from the date of expiry of the term of such other provisions in the CBA, shall retroact to the day immediately following such date.
If any such agreement is entered into beyond 6 months, the parties shall agree on the duration of retroactivity thereof.
2. Contract continue to have legal effects even after its expiry date, until a new CBA is renegotiated and extended into. (Lopez Sugar Corporation vs. FFW)
4. Union A and Co. B concluded a CBA with a duration of 3 years. Upon the expiration of the 3-year period, Co. B discontinued to benefits under the CBA. Is this legal?
No. Art. 253 requires the parties to keep the status quo and discontinue in full force, and effect until a new agreement is reached. (Alcantara)
D. CBA AND 3RD PARTY APPLICABILITY
Unless expressly assumed, labor contracts such as employment contracts and CBA’s are not enforceable against a transferee of an enterprise, labor contracts being in personam, thus binding only between parties. As a general rule, there is no law requiring a bona fide purchaser of assets of an ongoing concern to absorb in its employ the EE’s of the latter.
However, although the purchaser of the assets or enterprise is not legally bound to absorb in its employ the EE’s of the seller of such assets or enterprise the parties are liable to the EE’s if the colored or clothed with bad faith. (ALU vs. NLRC)
E. CBA AND THE SEC. OF LABOR AND EMPLOYMENT
May the parties be required by the Sec. of Labor and Employment to execute a CBA embodying terms and conditions that the latter may determine? Yes. This is pursuant to the power of compulsory arbitration vested in the Secretary. (Art. 263)
Section 7. Unfair Labor Practice