Spectra Notes - Labor Relations - Vol2 2014-15

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(1)Labor Relations Compilation Based on the outline by: Atty. Jefferson Marquez VOLUME 2 UPDATED AS OF: SY: 2014 - 2015. Societas Spectra Legis.

(2) Societas Spectra Legis Labor Relations Compilation. Table of Contents TOPIC 12: RIGHT TO SELF-ORGANIZATION ...................................................................................................................... 6 UNIONISM, POLICY OF STATE, CONSTITUTIONAL GUARANTEE ..............................................................................................................................................6 SCOPE AND NATURE OF EMPLOYEE’S RIGHTS ..........................................................................................................................................................................7 CONSTITUTIONAL BASIS .............................................................................................................................................................................................................7 STATUTORY BASIS .......................................................................................................................................................................................................................7 TWO CONCEPTS OF RIGHT TO ASSOCIATION ...........................................................................................................................................................................8 UNION SECURITY CLAUSE OR CLOSED SHOP AGREEMENT ......................................................................................................................................................8 PURPOSE OF EXERCISE OF RIGHT: TWO FOLD PURPOSE/S......................................................................................................................................................9 REPUBLIC ACT NO. 9481 ............................................................................................................................................................................................................9 NON-ABRIDGEMENT OF RIGHT TO SELF-ORGANIZATION......................................................................................................................................................11 UNION MEMBERSHIP AND FORMATION OF UNION: WHO ARE QUALIFIED AND DISQUALIFIED .......................................................................................11 DOCTRINE OF NECESSARY IMPLICATION ................................................................................................................................................................................14 CASE: SMC Supervisors and Exempt Union vs. Hon. Laguesma ........................................................................................................................................................................ 15. REGISTRATION OF UNION; JURISDICTION AND PROCEDURE, JURIDICAL PERSONALITY .....................................................................................................15 JURISDICTION AND PROCEDURE ..............................................................................................................................................................................................21 RIGHTS OF LEGITIMATE LABOR ORGANIZATION ....................................................................................................................................................................23 RIGHTS AND DUTIES OF UNION MEMBERS & NON-UNION MEMBERS (ART. 241) AND QUALIFICATIONS .......................................................................24 RIGHTS .......................................................................................................................................................................................................................................25 DUTIES........................................................................................................................................................................................................................................27 ELECTION OF UNION OFFICERS AND QUALIFICATIONS..........................................................................................................................................................27 CHECK- OFF PROVISION (ART. 113(B)).....................................................................................................................................................................................31 DISAFFILIATION: MEMBERS & UNION .....................................................................................................................................................................................32 INTRA- UNION & INTER-UNION DISPUTES: JURISDICTION OF BLR (ART. 226); OTHER MATTERS ......................................................................................33 CANCELLATION OF UNION REGISTRATION; GROUNDS; JURISDICTION & PROCEDURE ......................................................................................................35 INQUIRY INTO UNION’S FINANCIAL ACTIVITIES: VISITORIAL POWER (ART. 274) .................................................................................................................40 OTHER POWER OF SECRETARY OF LABOR (ART. 273) ............................................................................................................................................................41 OTHER SPECIAL LAWS: ..............................................................................................................................................................................................................42 RA 7916, CHAP. 4 (SPECIAL ECONOMIC ZONE ACT OF 1995) ................................................................................................................................................42 PART I, RULE II, SEC 2 ................................................................................................................................................................................................................42 PART IX, RULE XXIII, SEC. 1-7 ....................................................................................................................................................................................................42. TOPIC 13: RIGHTS OF LEGITIMATE LABOR ORGANIZATION ............................................................................................ 44 RIGHTS IN GENERAL (ART. 242, AS AMENDED) ......................................................................................................................................................................44 EXCLUSIVE BARGAINING AGENT ..............................................................................................................................................................................................45 PURPOSE OF AN EXCLUSIVE BARGAINING AGENT .................................................................................................................................................................45 CERTIFICATION PROCESS: CERTIFICATION ELECTION AND VOLUNTARY RECOGNITION .....................................................................................................45 RULES IN THE CONDUCT OF CERTIFICATION ELECTION (UNDER DO 40-03) ........................................................................................................................45 VOLUNTARY RECOGNITION ......................................................................................................................................................................................................47 CERTIFICATION ELECTION.........................................................................................................................................................................................................48 WHO MAY FILE FOR CERTIFICATION ELECTION ......................................................................................................................................................................54 PRINCIPLE OF PRECLUSION OR COLLATERAL ATTACK ............................................................................................................................................................60 INCLUSION-EXCLUSION PROCEEDINGS ...................................................................................................................................................................................60 CONTRACT BAR RULE ................................................................................................................................................................................................................60 EXCEPTIONS TO THE CONTRACT BAR RULE ............................................................................................................................................................................60 DEADLOCK BAR RULE ................................................................................................................................................................................................................61 CERTIFICATION YEAR RULE .......................................................................................................................................................................................................61. 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(3) Societas Spectra Legis Labor Relations Compilation VALID ELECTION AND DOUBLE MAJORITY RULE.....................................................................................................................................................................61 FAILURE OF ELECTION...............................................................................................................................................................................................................62 RUN-OFF ELECTIONS .................................................................................................................................................................................................................62 PRINCIPLE OF FAIR REPRESENTATION .....................................................................................................................................................................................62 SCOPE: BARGAINING UNIT .......................................................................................................................................................................................................62 JURISDICTIONAL PRECONDITIONS TO COLLECTIVE BARGAINING .........................................................................................................................................63 DUTY TO BARGAIN WITH OR WITHOUT A CBA .......................................................................................................................................................................63 FOUR (4) FORMS OF VIOLATION OF DUTY TO BARGAIN........................................................................................................................................................64 RIGHT TO COLLECTIVE BARGAINING .......................................................................................................................................................................................65 SINGLE ENTERPRISE BARGAINING/DECENTRALIZED BARGAINING .......................................................................................................................................65 MULTI-EMPLOYER BARGAINING/INDUSTRY-WIDE BARGAINING .........................................................................................................................................65 WHEN TO BARGAIN ..................................................................................................................................................................................................................67 CONTENTS OF CBA ....................................................................................................................................................................................................................67 GRIEVANCE MACHINERY – .......................................................................................................................................................................................................67 UNION SECURITY CLAUSE .........................................................................................................................................................................................................70 DRUG-FREE WORKPLACE ..........................................................................................................................................................................................................71 MANDATORY SUBJECTS OF BARGAINING ...............................................................................................................................................................................71 IMPASSE .....................................................................................................................................................................................................................................72 BOULWARISM ...........................................................................................................................................................................................................................72 RATIFICATION OF CBA: WHEN NEEDED? ................................................................................................................................................................................72 RATIFICATION OF CBA: WHEN NOT NEEDED? .......................................................................................................................................................................73 REGISTRATION OF CBA .............................................................................................................................................................................................................73 TERM OF CBA: REPRESENTATION ASPECT ..............................................................................................................................................................................74 RENEGOTIATION / RETROACTIVITY OF CBA ............................................................................................................................................................................75 SUBSTITUTIONARY DOCTRINE .................................................................................................................................................................................................76 RIGHT TO FINANCIAL STATEMENTS .........................................................................................................................................................................................76 RIGHT TO PARTICIPATE IN POLICY AND DECISION MAKING PROCESS ..................................................................................................................................77 PRINCIPLE OF CO-DETERMINATION ........................................................................................................................................................................................77 RIGHT TO ENGAGE IN PEACEFUL CONCERTED ACTIVITIES ....................................................................................................................................................77 FORMS OF CONCERTED ACTIVITIES .........................................................................................................................................................................................79 STRIKE AND LOCKOUT ..............................................................................................................................................................................................................79 CONSTITUTIONAL AND STATUTORY BASIS..............................................................................................................................................................................80 KINDS OF STRIKE .......................................................................................................................................................................................................................81 CATEGORIES OF ILLEGAL STIKE ................................................................................................................................................................................................82 NCMB MANUAL OF PROCEDURE FOR CONCILIATION AND PREVENTIVE MEDIATION ........................................................................................................82 STRIKE ........................................................................................................................................................................................................................................82 FORM NOTICE OF STRIKE AND LOCKOUTS; CONTENTS .........................................................................................................................................................82 WHERE TO FILE ..........................................................................................................................................................................................................................83 WHO MAY FILE ..........................................................................................................................................................................................................................83 GROUNDS FOR STRIKE AND LOCK-OUT ...................................................................................................................................................................................83 VALIDITY OF "NO STRIKE" CLAUSE ...........................................................................................................................................................................................85 STRIKEABLE ISSUES ...................................................................................................................................................................................................................85 NON-STRIKEABLE ISSUES ..........................................................................................................................................................................................................85 ASSUMPTION OF JURISDICITON/SEC./DOLE (ART. 263(G)) ...................................................................................................................................................86 DO-40-H-13, S. 2013, ................................................................................................................................................................................................................86 NATURE OF POWER; SCOPE .....................................................................................................................................................................................................87 EFFECT OF ASSUMPTION ..........................................................................................................................................................................................................87. 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(4) Societas Spectra Legis Labor Relations Compilation APPEAL TO OFFICE OF THE PRESIDENT; WHEN ALLOWED & PROCEDURE ...........................................................................................................................88 PROHIBITED ACTIVITIES ............................................................................................................................................................................................................90 STRIKE AREA ..............................................................................................................................................................................................................................90 IMPROVED OFFER BALLOTING .................................................................................................................................................................................................90 CONSEQUENCES OF LEGAL AND ILLEGAL STRIKE ...................................................................................................................................................................91 IN PARI DELICTO RULE ..............................................................................................................................................................................................................91 ARREST AND DETENTION OF UNION MEMBERS ....................................................................................................................................................................91 JOINT DOLE-PNP-PEZA GUIDELINES IN THE CONDUCT OF PNP PERSONNEL, ECONOMIC ZONE POLICE AND SECURITY GUARDS, COMPANY SECURITY GUARDS AND SIMILAR PERSONNEL DURING LABOR DISPUTES ........................................................................................................93 LEGAL REMEDIES OF EMPLOYER & UNION IN CASE OF STRIKE/LOCKOUT ...........................................................................................................................93 JURISDICTION & PROCEDURE BEFORE THE LABOR ARBITER & THE SECRETARY OF LABOR................................................................................................93 INNOCENT BY-STANDER RULE..................................................................................................................................................................................................93 ANTI-INJUNCTION BAN .............................................................................................................................................................................................................94 FREEDOM AT WORKPLACE .......................................................................................................................................................................................................95. TOPIC 14: REVISED GUIDELINES OF THE NCMB FOR THE CONDUCT OF VOLUNTARY ARBITRATION PROCEEDINGS ............................................................................................................................................................ 100 ART. 260, 261, 262, 262-A, 262-B ......................................................................................................................................................................................... 100 DO-40-03 ................................................................................................................................................................................................................................ 101 ART. 211 (G), LABOR CODE & SEC. 3, ART XIII, 1987 CONSTITUTION................................................................................................................................. 103 Art. 255 & ART. 277 (G) & (H)................................................................................................................................................................................................ 104 FRAMEWORK OF ALTERNATIVE DISPUTE RESOLUTION FOR DISPUTE PREVENTION: ...................................................................................................... 105 1. CONCILIATION- MEDIATION .............................................................................................................................................................................................. 105 2. VOLUNTARY ARBITRATION................................................................................................................................................................................................ 105 3. GRIEVANCE HANDLING ...................................................................................................................................................................................................... 105 4. WORKPLACE COOPERATION (LABOR- MANAGEMENT COUNCIL) .................................................................................................................................. 106 5. EMPLOYEE INVOLVEMENT (EI) & EMPLOYMENT PARTICIPATION SCHEMES ................................................................................................................ 106 6. COLLECTIVE BARGAINING ................................................................................................................................................................................................. 108 STRIKE OR LOCK-OUT INTERVENTION ON THE PART OF DOLE: CONCILIATION/MEDIATION .......................................................................................... 108 A. CONCILIATION/MEDIATION (NCMB), ............................................................................................................................................................................... 108 B. VOLUNTARY (ART. 262) ..................................................................................................................................................................................................... 108 C. COMPULSORY ARBITRATION (ART. 217) .......................................................................................................................................................................... 108 D. ASSUMPTION OF JURISDICTION (ART. 263 (G)) .............................................................................................................................................................. 109 GRIEVANCE; CONCEPT; & SCOPE .......................................................................................................................................................................................... 109 SUBMISSION AGREEMENT; NOTICE TO ARBITRATE; ARBITRATION CLAUSE ..................................................................................................................... 110 GRIEVANCE MACHINERY; UNRESOLVED GRIEVANCES ........................................................................................................................................................ 110 COLLECTIVE BARGAINING AGREEMENT & COMPANY PERSONNEL POLICIES (CONTRACT INTERPRETATION & ENFORCEMENT DISPUTE) ................ 110 DISPUTES INVOLVING PRODUCTIVITY INCENTIVE PROGRAMS UNDER RA 6971 (PRODUCTIVITY INCENTIVES ACT) ..................................................... 111 GRIEVANCE PROCEDURE; GRIEVANCE COMMITTEE ........................................................................................................................................................... 111 VOLUNTARY ARBITRATION; DISTINGUISHED FROM COMPULSORY ARBITRATION .......................................................................................................... 111 DESIGNATION OR APPOINTMENT OF VOLUNTARY ARBITRATOR; AD-HOC AND PERMANENT ....................................................................................... 112 JURISDICTION OF VOLUNTARY ARBITRATOR; ORIGINAL AND EXCLUSIVE; & CONCURRENT ........................................................................................... 112 POWERS AND DUTIES OF VOLUNTARY ARBITRATOR .......................................................................................................................................................... 113 COST OF VOLUNTARY ARBITRATION AND FEES OF ARBITRATOR ...................................................................................................................................... 114 NATURE OF PROCEEDINGS; INITIAL CONFERENCE; ARBITRATION ISSUES; GROUND RULES; FILING OF POSITION PAPERS AND OTHER PLEADINGS; CLARIFICATORY HEARING; RECORDING OF PROCEEDINGS; ARBITRATION CONFERENCE .......................................................................... 114 DECISION OF VOLUNTARY ARBITRATOR AND PROHIBITED MOTION; APPEAL PROCEDURE (RULE 43, RULES OF CIVIL PROCEDURE) AND RULE 45 ................................................................................................................................................................................................................................... 116 COMPLIANCE OF AND EXECUTION OF DECISIONS OR ORDER OF VOLUNTARY ARBITRATOR ......................................................................................... 116. 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(5) Societas Spectra Legis Labor Relations Compilation TOPIC 15: UNFAIR LABOR PRACTICE ............................................................................................................................ 117 REQUISITES ............................................................................................................................................................................................................................. 117 CONDITIONS: .......................................................................................................................................................................................................................... 117 ACTS OF UNFAIR LABOR PRACTICE: EMPLOYER & UNION .................................................................................................................................................. 117 TERMS ..................................................................................................................................................................................................................................... 119 PRESCRIPTIVE PERIOD............................................................................................................................................................................................................ 120 PENAL PROVISION .................................................................................................................................................................................................................. 120 JURISDICTION ......................................................................................................................................................................................................................... 120 PROCEDURE ............................................................................................................................................................................................................................ 121 RELIEF AGAINST UNFAIR LABOR PRACTICES ........................................................................................................................................................................ 121. University of San Carlos - School of Law and Governance | Based on the Outline of JMM. Page 5.

(6) Societas Spectra Legis Labor Relations Compilation. TOPIC 12: RIGHT TO SELF-ORGANIZATION UNIONISM, POLICY OF STATE, CONSTITUTIONAL GUARANTEE The State promotes unionism in Art. III Sec 8 and Art. XIII Sec 3 of the 1987 Constitution. “ART III, 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.” “ART XIII, 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.”. The Constitution contains provisions which promote unionism and one of the provisions include: 1.. the right to self-organization; (Art. 243). 2.. the right to collective bargaining and negotiations; and (Art. 243; 244). 3.. peaceful concerted activities (provision on strikes or lockouts Art. 263). All three constitutional rights promote unionism Why? The State promotes unionism for full protection of labor – more benefits are obtained because you are given the opportunity to bargain for benefits and privileges. Therefore, there is a stronger voice to air out your concerns, thus more chance that your request will be granted by the employers. Employer and employee do not stand in equal footing in terms of collective bargaining because in order to bargain you need education; skills and experience; Individual bargaining is NOT as effective as collective bargaining These rights are very important to the worker in terms of improving their conditions of employment because they can raise concerns and make the employer aware of the lacking benefits. It is better to have collective bargaining. There is no provision in the Constitution nor in the Labor Code which promotes individual bargaining. Constitutional right of employees to self-organization is recognized in the labor code (Art. 243 and 244) It is not easy for an individual EE to bargain with the ER. All three rights should come together or be present in order to be effective. The workers may exercise collective bargaining when they have organized themselves as a labor organization. Thru the exercise of this right they can negotiate with management in equal level and with more persuasion than if they were to individually and independently bargain for the improvement of their conditions. The ER and EE do not stand in equal footing that is why to balance this, the law gives more protection to labor – to offset the social and economic imbalance.. University of San Carlos - School of Law and Governance | Based on the Outline of JMM. Page 6.

(7) Societas Spectra Legis Labor Relations Compilation SCOPE AND NATURE OF EMPLOYEE’S RIGHTS Both private and public EEs have a right to association. Right to strike is only applicable to private establishments. For Public employees, peaceful picketing is allowed (ex. Wearing arm bands) – during working hours, you cannot march around, however, during lunch period or break time such is allowed. On the right of collective bargaining, only those GOCCs without original charter established under the Corporation Code are allowed. Those under the Civil Service Law are not allowed to collectively bargain because the salary of those working in the civil service is already fixed by law and thus cannot be subject to collective bargaining. What the government EE can do is to lobby with Congress to enact laws which will improve their compensation and benefits. Private EEs enjoy broader rights than public EEs. However, as regards to the right to association, both exercise such right.. CONSTITUTIONAL BASIS Article III Section 8 (1987 Constitution) The right of the people in the public and private sectors to form unions, associations or societies for purposes not contrary to law shall not be abridged. Article XIII Section 3 (1987 Constitution) 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.. STATUTORY BASIS Article 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 whether operating 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. Article 244 Right of the 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.. University of San Carlos - School of Law and Governance | Based on the Outline of JMM. Page 7.

(8) Societas Spectra Legis Labor Relations Compilation DO. No. 40-03 Series of 2003, DO. No. 40-A-3, 40-B-03 and 40-C-05 are the implementing rules issued by the DOLE to enforce the right to association. Recently Congress enacted RA 9481 otherwise known as “AN ACT STRENGTHENING THE WORKERS' CONSTITUTIONAL RIGHT TO SELF-ORGANIZATION, AMENDING FOR THE PURPOSE PRESIDENTIAL DECREE NO. 442, AS AMENDED, OTHERWISE KNOWN AS THE LABOR CODE OF THE PHILIPPINES”. TWO CONCEPTS OF RIGHT TO ASSOCIATION NOTE: The right to association is broader than the right to self-organization 1.) Liberty or freedom – the absence of legal restraint whereby an employee may act for himself without being circumvented by law. . he may act as he or she pleases in the absence of legal restraint. . unless there is a specific law which prevents you from performing or doing a particular act, an EE may act for himself without being circumvented or restrained by law.. 2.) Power to join or not to join – a person may choose to join or not to join and which organization to join and he may disassociate or withdraw from the organization. Freedom of association- the right to join an organization Negative freedom of association – the right NOT to join an organization, but not absolute because of the closed shop agreement.. Note: However in RA 3350 otherwise known as the Industrial Peace Act -“but such agreement shall not cover members of any religious sects which prohibit affiliation of their members in any such labor organization.”… The free exercise of religious profession or belief is superior to contract rights. In case of conflicts the latter must yield to the former (Victoriano vs. Elizalde Rope Worker’s Union et al). General Rule: Employee is free to join/not to join an association. An individual has a freedom of association and the negative freedom of association (inherent right of every individual) Exception to the negative freedom of association: Closed-shop agreement (as regulated by Art. 248 of Labor Code and CBA) where employee, under pain of dismissal has no choice but to join the existing labor organization. Closed shop agreement- agreement between employer and union to require membership in a union for purpose of continued employment. UNION SECURITY CLAUSE OR CLOSED SHOP AGREEMENT Article 248 (e) Nothing in this Code or in any other law shall stop the parties from requiring membership in the recognized collective bargaining agent as a condition for employment except those employees who are already members of another union at the time of the collective bargaining agreement.. Exceptions to the exception: 1.. If employee is a member of a religious organization which prohibits employee from affiliating with any labor organization then this right prevails over closed-shop provision. (Victoriano vs. Elizalde) Currently: Iglesia ni Kristo allows its members to join labor unions but not allowed to join a strike. University of San Carlos - School of Law and Governance | Based on the Outline of JMM. Page 8.

(9) Societas Spectra Legis Labor Relations Compilation 2.. If, at the time of the signing of the CBA, employee is already a member of another labor union. (Art. 248). 3.. When it is expressly excluded in the CBA. PURPOSE OF EXERCISE OF RIGHT: TWO FOLD PURPOSE/S 1.) Collective Bargaining- this is the primary purpose (if absent, then it is a useless endeavour) It is only when you are certified as sole and exclusive bargaining agent (vote of confidence is necessary) can you then collectively bargain 2.) Mutual Aid and Protection- Members form an association wherein they give contributions for mutual benefits. Ex. Social organizations and cooperatives – they contribute to provide housing, scholarship, etc. REPUBLIC ACT NO. 9481 “AN ACT STRENGTHENING THE WORKERS' CONSTITUTIONAL RIGHT TO SELF-ORGANIZATION, AMENDING FOR THE PURPOSE PRESIDENTIAL DECREE NO. 442, AS AMENDED, OTHERWISE KNOWN AS THE LABOR CODE OF THE PHILIPPINES” SECTION 1. Article 234 of Presidential Decree No. 442, as amended, otherwise known as the Labor Code of the Philippines, is hereby further amended to read as follows: "ART. 234. Requirements of Registration. - A federation, national union or industry or trade union center or an independent union shall acquire legal personality and shall be entitled to the rights and privileges granted by law to legitimate labor organizations upon issuance of the certificate of registration based on the following requirements: (a) Fifty pesos (P50.00) registration fee; (b) The names of its officers, their addresses, the principal address of the labor organization, the minutes of the organizational meetings and the list of the workers who participated in such meetings; (c) In case the applicant is an independent union, the names of all its members comprising at least twenty percent (20%) of all the employees in the bargaining unit where it seeks to operate; (d) If the applicant union has been in existence for one or more years, copies of its annual financial reports; and (e) Four copies of the constitution and by-laws of the applicant union, minutes of its adoption or ratification, and the list of the members who participated in it." SEC. 2. A new provision is hereby inserted into the Labor Code as Article 234-A to read as follows: "ART. 234-A. Chartering and Creation of a Local Chapter. - A duly registered federation or national union may directly create a local chapter by issuing a charter certificate indicating the establishment of the local chapter. The chapter shall acquire legal personality only for purposes of filing a petition for certification election from the date it was issued a charter certificate. The chapter shall be entitled to all other rights and privileges of a legitimate labor organization only upon the submission of the following documents in addition to its charter certificate: a. b.. The names of the chapter's officers, their addresses, and the principal office of the chapter; and The chapter's constitution and by-laws: Provided, That where the chapter's constitution and by-laws are the same as that of the federation or the national union, this fact shall be indicated accordingly.. The additional supporting requirements shall be certified under oath by the secretary or treasurer of the chapter and attested by its president." SEC. 3. Article 238 of the Labor Code is hereby amended to read as follows: "ART. 238. Cancellation of Registration. - The certificate of registration of any legitimate labor organization, whether national or local, may be cancelled by the Bureau, after due hearing, only on the grounds specified in Article 239 hereof." SEC. 4. A new provision is hereby inserted into the Labor Code as Article 238-A t o read as follows:. University of San Carlos - School of Law and Governance | Based on the Outline of JMM. Page 9.

(10) Societas Spectra Legis Labor Relations Compilation "ART. 238-A. Effect of a Petition for Cancellation of Registration. - A petition for cancellation of union registration shall not suspend the proceedings for certification election nor shall it prevent the filing of a petition for certification election. In case of cancellation, nothing herein shall restrict the right of the union to seek just and equitable remedies in the appropriate courts." SEC. 5. Article 239 of the Labor Code is amended to read as follows: "ART. 239. Grounds for Cancellation of Union Registration. - The following may constitute grounds for cancellation of union registration: a.. b. c.. Misrepresentation, false statement or fraud in connection with the adoption or ratification of the constitution and by-laws or amendments thereto, the minutes of ratification, and the list of members who took part in the ratification; Misrepresentation, false statements or fraud in connection with the election of officers, minutes of the election of officers, and the list of voters; Voluntary dissolution by the members.". SEC. 6. A new provision, Article 239-A is inserted into the Labor Code to read as follows: "ART. 239-A. Voluntary Cancellation of Registration. - The registration of a legitimate labor organization may be cancelled by the organization itself. Provided, That at least two-thirds of its general membership votes, in a meeting duly called for that purpose to dissolve the organization: Provided, further, That an application to cancel registration is thereafter submitted by the board of the organization, attested to by the president thereof." SEC. 7. A new provision, Article 242-A is hereby inserted into the Labor Code to read as follows: "ART. 242-A. Reportorial Requirements. - The following are documents required to be submitted to the Bureau by the legitimate labor organization concerned: a.. b. c. d.. Its constitution and by-laws, or amendments thereto, the minutes of ratification, and the list of members who took part in the ratification of the constitution and by-laws within thirty (30) days from adoption or ratification of the constitution and by-lam or amendments thereto; Its list of officers, minutes of the election of officers, and list of voters within thirty (30) days from election; Its annual financial report within thirty (30) days after the close of every fiscal year; and Its list of members at least once a year or whenever required by the Bureau.. Failure to comply with the above requirements shall not be a ground for cancellation of union registration but shall subject the erring officers or members to suspension, expulsion from membership, or any appropriate penalty." SEC. 8. Article 245 of the Labor Code is hereby amended to read as follows: "ART. 245. Ineligibility of Managerial Employees to Join any Labor Organization; 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 the collective bargaining unit of the rank-and-file employees but may join, assist or form separate collective bargaining units and/or legitimate labor organizations of their own. The rank and file union and the supervisors' union operating within the same establishment may join the same federation or national union." SEC. 9. A new provision, Article 245-A is inserted into the Labor Code to read as follows: "ART. 245-A. Effect of Inclusion as Members of Employees Outside the Bargaining Unit. - The inclusion as union members of employees outside the bargaining unit shall not be a ground for the cancellation of the registration of the union. Said employees are automatically deemed removed from the list of membership of said union." SEC. 10. Article 256 of the Labor Code is hereby amended to read as follows: "ART. 256. Representation Issue in Organized Establishments. - In organized establishments, when a verified petition questioning the majority status of the incumbent bargaining agent is filed by any legitimate labor organization including a national union or federation which has already issued a charter certificate to its local chapter participating in the certification election or a local chapter which has been issued a charter certificate by the national union or federation before the Department of Labor and Employment within the sixty (60)-day period before the expiration of the collective bargaining agreement, the Med-Arbiter shall automatically order an election by secret ballot when the verified petition is supported by the written consent of at least twenty-five percent (25%) of all the employees in the bargaining unit to ascertain the will of the employees in the appropriate bargaining unit. To have a valid election, at least a majority of all eligible voters in the unit must have cast their votes. The labor union receiving the majority of the. University of San Carlos - School of Law and Governance | Based on the Outline of JMM. Page 10.

(11) Societas Spectra Legis Labor Relations Compilation valid votes cast shall be certified as the exclusive bargaining agent of all the workers in the unit. When an election which provides for three or more choices results in no choice receiving a majority of the valid votes cast, a run-off election shall be conducted between the labor unions receiving the two highest number of votes: Provided, That the total number of votes for all contending unions is at least fifty percent (50%) of the number of votes cast. In cases where the petition was filed by a national union or federation, it shall not be required to disclose the names of the local chapter's officers and members. At the expiration of the freedom period, the employer shall continue to recognize the majority status of the incumbent bargaining agent where no petition for certification election is filed." SEC. 11. Article 257 of the Labor Code is hereby amended to read as follows: "ART. 257. Petitions in Unorganized Establishments. - In any establishment where there is no certified bargaining agent, a certification election shall automatically be conducted by the Med-Arbiter upon the filing of a petition by any legitimate labor organization, including a national union or federation which has already issued a charter certificate to its 1ocal/chapter participating in the certification election or a local/chapter which has been issued a charter certificate by the national union or federation. In cases where the petition was filed by a national union or federation, it shall not be required to disclose the names of the local chapter's officers and members.” SEC. 12. A new provision, Article 258-A is hereby inserted into the Labor Code to read as follows: "ART. 258-A. Employer as Bystander. - In all cases, whether the petition for certification election is filed by an employer or a legitimate labor organization, the employer shall not be considered a party thereto with a concomitant right to oppose a petition for certification election. The employer's participation in such proceedings shall be limited to: (1) being notified or informed of petitions of such nature; and (2) submitting the list of employees during the pre-election conference should the Med-Arbiter act favorably on the petition.". NOTE: See also IRR under DO No. 40-03 as amended by DO Nos. 40-A-03, 40-B-03, 40-C-05, 40-D-05, 40-E-05 40-F-03, 40G-10 & 40-H-13.. NON-ABRIDGEMENT OF RIGHT TO SELF-ORGANIZATION ART. 246 It shall be unlawful for any person to restrain, coerce, discriminate against or unduly interfere with employees and workers in their exercise of the right to self-organization. Such right shall include the right to form, join or assist labor organization for the purpose of collective bargaining through representatives of their own choosing and to engage in lawful concerted activities for the same purpose or for their mutual aid or protection subject to the provision in Article 264 of this code. Note: This right to self organization is protected by law and should not be abridged or curtailed. The code says that an act tending to weaken or defeat this right is unlawful and is considered as an “Unfair Labor Practice” and shall be dealt with by law.. UNION MEMBERSHIP AND FORMATION OF UNION: WHO ARE QUALIFIED AND DISQUALIFIED THOSE QUALIFIED: (DO 40-03; 40-A-03; 40-B-03) Article 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, whether operating 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) Article 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). University of San Carlos - School of Law and Governance | Based on the Outline of JMM. Page 11.

(12) Societas Spectra Legis Labor Relations Compilation Rule II, Section 2 of DO 40-03 as amended. Who may join labor unions and workers associations. - All persons employed in commercial, industrial and agricultural enterprises, including employees of government owned or controlled corporations without original charters established under the Corporation Code, as well as employees of religious, charitable, medical or educational institutions whether operating for profit or not, shall have the right to selforganization and to form, join or assist labor unions for purposes of collective bargaining provided, however, that supervisory employees shall not be eligible for membership in a labor union of the rank-and-file employees but may form, join or assist separate labor unions of their own. Managerial employees shall not be eligible to form, join or assist any labor unions for purposes of collective bargaining. Alien employees with valid working permits issued by the Department may exercise the right to self-organization and join or assist labor unions for purposes of collective bargaining if they are nationals of a country which grants the same or similar rights to Filipino workers, as certified by the Department of Foreign Affairs, or which has ratified either ILO Convention No. 87 and ILO Convention No. 98. For purposes of this section, any employee, whether employed for a definite period or not, shall beginning on the first day of his/her service, be eligible for membership in any labor organization. All other workers, including ambulant, intermittent and other workers, the self-employed, rural workers and those without any definite employers may form labor organizations for their mutual aid and protection and other legitimate purposes except collective bargaining.”(DO 40-c-05). SUMMARY OF THOSE QUALIFIED: 1. All persons employed in commercial, industrial and agricultural enterprises including: a. b. c.. Commercial establishments – those engaged in sale of goods or services. Ex. Shoemart Industrial establishments – those engaged in the manufacture and processing of goods from raw materials. Ex. Philip Morris Agricultural establishments – engaged in the growing or planting of crops. Ex. Dole Phil., farmers. 2. Employees of government owned or controlled corporations without original charters established under the Corporation Code. . Article 244, LC. . if employed in a government corporation established under the Corporation Code: they have the right to self organization and collective bargaining. . with original charter: city of cebu- not covered. . without original charter: example. 3. Employees of religious, charitable medical or education institutions operating for profit or not. Religious, Charitable, Medical, and Educational Institutions – if Iglesia Ni Kristo hires workers, such workers can form a labor organization. In these types of establishments EEs or workers can exercise the right to self organization regardless of whether the establishment operates for profit or not. 4. Alien employees with valid working permits issued by the Department if they are nationals of a country which grants the same or similar rights to Filipino workers as certified by the Department of Foreign Affairs. (Reciprocity rule) Alien employees (Article 269) – absolutely prohibited from FORMING labor organizations but they can JOIN or ASSIST provided they have valid permits and the country where they are nationals grant the same rights to Filipinos. General rule: Alien EEs are strictly prohibited from engaging directly or indirectly in all forms of trade union activities Exceptions: Under the Labor Code: (1) if they are working in the country (2) with valid working permits issued by the DOLE; (3) aliens are nationals of a country which grants the same or similar rights to Filipino workers (reciprocity rule); (4) Under the IRR: that the country to which the alien is a national has participated in the ratification of ILO convention #87 and 98 as certified by the DFA (these conventions pertain to the right to collectively bargain) 5. All other workers including ambulant, intermittent and other workers, the self-employed people, rural workers and those without any definite employers may form labor organizations for their mutual aid and protection and other legitimate purposes except collective bargaining. Note: Everybody can exercise their right to association whether in the public or private sector.. University of San Carlos - School of Law and Governance | Based on the Outline of JMM. Page 12.

(13) Societas Spectra Legis Labor Relations Compilation 6. Security Guards Under RA 6715, they may now freely join a labor organization of the rank-and –file or that of the supervisory union depending on their rank in recognition of their constitutional right to self organization 7. Workers in export processing zones. SUMMARY OF THOSE DISQUALIFIED: 1.. EMPLOYEES OF GOVERNMENT CORPORATIONS ESTABLISHED THROUGH SPECIAL CHARTERS   . .    . 2.. If the corporation was created by original charter or under the civil service law: they have the right to form an organization for mutual aid and protection but they cannot engage in collective bargaining. The law which spells out and governs the right to associate for government EEs is EO 180 which provides the coverage and scope of self organization of government EEs. The right of Government to deal and negotiate with their respective employers is NOT quite as extensive as that of private employees. Excluded from negotiation by government employees are the “terms and conditions of employment that are fixed by law” NOT negotiable are- matters that require appropriation of funds (e.g. increase in salary emoluments and other allowances, car plan, special hospitalization, increase in retirement benefits) and those that involve the exercise of management prerogatives (e.g. appointment, promotion, assignment, penalties as a result of disciplinary action) NEGOTIABLE- matters such as schedule of vacation and other leaves, work assignment of pregnant women; recreational, social, athletic activities and facilities The right to self organization pertain to all EEs of all branches, subdivision, instrumentalities, and agencies of the government, including GOCCs with original charters. Members of the AFP, firemen, police officers, policemen, and jail guards are excluded from EO 180 or NOT allowed to unionize for reasons of public security and safety. The exception in EO 180 is constitutional because there is substantial distinction. The protection of the state is more superior to contractual rights. It is an exercise of police power. MANAGERIAL EMPLOYEES Article 245. Ineligibility of managerial employees to join any labor organization; 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, Republic Act No. 6715, March 21, 1989) ART. 245-A. Effect of Inclusion as Members of Employees Outside the Bargaining Unit. - The inclusion as union members of employees outside the bargaining unit shall not be a ground for the cancellation of the registration of the union. Said employees are automatically deemed removed from the list of membership of said union." The rationale for this inhibition has been stated to be because if these managerial employees will belong to or be affiliated with a Union, the latter might not be assured of their loyalty to the union in view of evident Conflict in interest. The Union can also be company-dominated with the presence of managerial employees in union membership. (United Pepsi-Cola Supervisory Union vs. Laguesma) Categories of Employees: (1) Managerial; (2) Supervisory; (3) Rank-and-file “Managerial employee" is one who is vested with the powers or prerogatives to lay down and execute management policies and/or to hire, transfer, suspend, lay-off, recall, discharge, assign or discipline employees. (Art. 212) . Managerial employees are absolutely prohibited (absolute disqualification) to form, join and assist labor union because there will be conflict of interest. Their loyalty should be with the owners. They represent the management and therefore they cannot bargain with themselves. They can, however, form organizations for mutual aid and protection.. University of San Carlos - School of Law and Governance | Based on the Outline of JMM. Page 13.

(14) Societas Spectra Legis Labor Relations Compilation . In order to determine if you are a managerial employee it is NOT based on the title rather it is dependent on your powers and duties (ex. Power to hire, fire, suspend, discipline EEs). . The three (3) types of managerial employees are as follows: a.. Top management; - responsible for the overall management of the organization; establishes operating policies b. Middle management; - direct the activities of other managers and sometimes also those of operating employees c. First-line management. – direct operating employees only, they do not supervise other managers (See United Pepsi0Cola Supervisors Union vs. Laguesma, 288 SCRA 15 and Paper Industries Corp. of the Philippines vs. Laguesma, G. R. No. 101738, April 12, 2000) “Supervisory employees” are those who, in the interest of the employer, effectively recommend such managerial actions if the exercise of such authority is not merely routinary or clerical in nature but requires the use of independent judgment (Art. 212) . As a general rule, only top and middle managers are not allowed to join any labor organization. First-line managers (or supervisory employees) are allowed to join a supervisory union but not the union of rank-and-file employees or vice-versa. In fact, the law does not allow mixed membership of both supervisory and rank-and-file employees in one union.. . The principal distinction between managerial employees and supervisory employees is: the former have the power to decide and do managerial acts; while the latter have the power only to recommend managerial acts such as laying down policy, hiring or dismissal of employees and the like.. . Manager makes policy decisions or people decisions or both; supervisor recommends those decisions. . Power of supervisor: the recommendation is:. a. Discretionary or judgmental (not clerical) b. Independent c. Effective (given weight in making the management decision) The “separation of unions” doctrine simply means that the affiliation of both the rank-and-file union and supervisory union in the same company with one and the same federation is not allowed if the rank-and-file employees are under the direct supervision of the supervisors composing the supervisory union. If not, said affiliation with one and the same federation is allowed. Rationale of segregation of rank-and-file and supervisors is founded on fairness to the employer and the employees. It will be detrimental to the employer if the supervisors and the rank-and-file as members of only one union could take a common stand against the employer Supervisory employees are relatively prohibited (relative disqualification) since they cannot associate with the rank and file but they can form their own union because of conflict of interest. Areas where conflict of interest may arise: a.. Area of discipline- there will be no one to discipline the rank and file employees (Atty Marquez: if barkada na sila, sino pa ang mag didiscipline?) b. Area of collective bargaining- their loyalty will be divided. They can serve as spies for or against the ERs. “Rank and file employees” - neither managerial nor supervisory in nature (IRR). DOCTRINE OF NECESSARY IMPLICATION 3.. CONFIDENTIAL EMPLOYEES (BASIS: DOCTRINE OF NECESSARY IMPLICATION) . Reason for disqualification: Conflict of Interest. They are those who by reason of their positions or nature of work are required to assist or act in a fiduciary manner to managerial employees and hence are likewise privy to sensitive and highly confidential records. (Metro Lab Industries vs. Confessor et al). University of San Carlos - School of Law and Governance | Based on the Outline of JMM. Page 14.

(15) Societas Spectra Legis Labor Relations Compilation They assist and act in a confidential capacity to or have access to confidential matters or persons who exercise managerial functions in the field of labor relations. As such the rationale behind the ineligibility of managerial employees to form, assist or join a labor union equally applies to them (Philips Industrial Development vs. NLRC.)   . Confidential employee may be a supervisory or even a rank-and-file employee Confidential employees are excluded from the bargaining unit and closed-shop clause Access to information which is regarded by the employer to be confidential from the business standpoint, such as financial information or technical trade secrets will NOT render an employee a confidential employee. “Doctrine of Necessary Implication” - what is implied in a statute is as much a part thereof as that which is expressed. . If you are a supervisor and at the same time you hold a confidential position, you are NOT qualified to form, join, or assist a union.. . If you are a rank and file EE but you hold a confidential position, you are NOT qualified to form, join or assist a union based on the doctrine of necessary implication.. CASE: SMC Supervisors and Exempt Union vs. Hon. Laguesma Under the “confidential employee rule”, confidential employees are not allowed to join any union (as they are treated like managers) when they: Assist or act in a confidential capacity, to persons who formulate, determine, and effectuate management policies specifically in the field of labor relations. Otherwise, if these two conditions do not concur, they can join a union. Simply put, if the confidential information to which an employee has access has nothing to do with labor relations, such employee cannot be considered a confidential employee under this rule.. 4.. MEMBERS (CO-OWNERS OF A COOPERATIVE). An owner cannot bargain with himself or his co-owners (San Jose Electric Service Corporation Inc. vs. Ministry of Labor)  . . 5.. Members of cooperatives – they CANNOT form, join, or assist a labor organization except for mutual aid and protection. Article 243 uses the word “employed” when referring to those who can form, join, or assist labor organizations. Members of a cooperative are not employed by the cooperative rather they are owners and thus it would be absurd for an owner to bargain with itself. Cooperatives with employees who are NOT members or co-owners are entitled to exercise the rights of all workers to organization, collective bargaining negotiations. MEMBERS OF INTERNATIONAL ORGANIZATIONS By the Doctrine of Incorporation, they are immune from suit and cannot be subject to local jurisdiction. (International Catholic Migration Commission vs. Calleja; Kapisanan ng mga Manggagawa at TAC sa IRRIOLALIA vs. Secretary of Labor and Employment)  . E.g. International Rice Research Institute (IRRI) International organization is set up by agreement between 2 or more states. REGISTRATION OF UNION; JURISDICTION AND PROCEDURE, JURIDICAL PERSONALITY Terminologies: 1.. Labor Organization –refers to any labor organization in the private sector whether registered or not. . A Labor organization is any union or association of employees which exists in whole or in part for the purpose of collective bargaining, mutual aid, interest, cooperation, or other lawful purposes (IRR). . Union and labor organization can be used interchangeably. . It is considered "legitimate" if duly registered with DOLE.. . A labor organization is NOT always a union, it may be an association of employees. University of San Carlos - School of Law and Governance | Based on the Outline of JMM. Page 15.

(16) Societas Spectra Legis Labor Relations Compilation 2.. Legitimate Labor Organization – refers to any labor organization in the private sector registered or reported with the department of Labor and Employment and includes any branch or local thereof (Art. 212). 3.. Workers' association- refers to an association of workers organized for the mutual aid and protection of its members or for any legitimate purpose other than collective bargaining. (IRR). Registration with DOLE makes it legitimate. 4.. Legitimate workers’ association- refers to an association of workers organized for mutual aid and protection of its members or of any legitimate purpose other than collective bargaining registered with the Department in accordance with Rule III, Section 2-C and 2-D of these rules (IRR) .  . Distinction between a labor organization and a workers’ association A labor organization is established principally for collective bargaining purposes; while a workers' association is organized for the mutual aid and protection of its members but not for collective bargaining purposes. However, as regards to the composition, they are the same. They only differ on the purpose and power. The establishment of workers’ association is NOT found under the LC but it is found in DO 40-03. The rules contain registration of worker’s association. . 5.. The purposes of a labor organization a. Collective bargaining; and b. Dealing with employers regarding the terms and conditions of the employment relationship.  To bargain collectively is a right that may be acquired by a labor organization after registering itself with the DOLE and being recognized by DOLE as the exclusive bargaining representative of the employees  Dealing with the employer is a generic description of interaction between employer and employees concerning grievances, wages, work hours even if NOT registered with the DOLE Bargaining unit - is the group or cluster of jobs or positions that supports the labor organization which is applying for registration, within the employer’s establishment. Refers to a group of employees sharing mutual interest within a given employer unit, comprises of all or less than all of the entire body of employees in the employer unit or any specific occupational or geographical grouping within such employer unit. (IRR) Determination of bargaining unit: a. b. c.. Communality / Mutuality of interest (e.g. teachers share same interest with fellow teachers, but you cannot mix up with the non academic personnel) will of the employees- Globe doctrine prior/ previous history. 6.. Union – refers to any labor organization in the private sector for collective bargaining and for other legitimate purpose. (IRR). 7.. National Union or Federation – refers to a group of legitimate labor unions in private establishment organized for collective bargaining or for dealing with employers concerning terms and conditions of employment for their member unions or for participating in the formulation of social and employment policies, standards and programs, registered with the Bureau in accordance with Rule Section 2-B of these Rules (IRR) It is composed of at least 10 legitimate labor organizations whether independent labor unions or chartered locals each of which must be duly certified or recognized bargaining agent in the establishment where it seeks to operate. Note:Before RA 6715, there was this one company-one union policy. After the effectivity of the Herrera Veloso Doctrine on March 21 1989, it was abandoned with the 3-tiered classification of employees. There may be two or more certified bargaining agents serving different interests.. 8.. 9.. Affiliate- refers to: an independent union affiliated with a federation, national union; or a chartered local which was subsequently granted independent registration but did not disaffiliate from its federation. It is important to gain or increase the bargaining power vis-à-vis the employer. Chartered Local – refers to a labor organization in the private sector operating at the enterprise level that acquired legal personality through the issuance of a charter certificate by a duly registered federation or national union. (IRR). University of San Carlos - School of Law and Governance | Based on the Outline of JMM. Page 16.

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