Addie Celerian * Amor Venenoso * Draei Dumalanta * Ellan Cipriano
Ingrid Prado * Mary Ang * Rica Casiquin * Sam Santos
LABOR CODE OF THE PHILIPPINES BOOK FIVE
LABOR RELATIONS TITLE III
BUREAU OF LABOR RELATIONS
Art. 226. Bureau of Labor Relation -- The Bureau
of LaborRelations and the Labor Relations Divisions in the regional offices of the Department of Labor, shall have original and exclusive authority to act, at their own initiative or upon request of either or both parties, on all inter-union and intra-union conflicts, and all disputes, grievances or problems arising from or affecting labor-management relations in all workplaces, whether agricultural or non-agricultural, except those arising from the implementation or interpretation of collective bargaining agreements which shall be the subject of grievance procedure and/or voluntary arbitration.
The Bureau shall have fifteen (15) working days to act on laborcases before it, subject to extension by agreement of the parties.
COMMENT:
-‐ EO No. 126: Transferred the conciliation, mediation, and voluntary arbitration functions of the BLR to the National Conciliation and Mediation Board (NCMB).
-‐ Principal task of BLR is now limited to handling inter-union and intra-union conflicts, registration and cancellation of registration of labor organizations, particularly those involving federations, national unions or industry unions. Intra-Union Disputes:
-‐ A controversy between and among union members.
-‐ Includes grievances from:
o Any violation of the rights and conditions of union membership;
o Violation or disagreement over any provision of the union’s constitution and by-laws; or
o Disputes arising from chartering or affiliation of union.
Case: Ilaw at Buklod Ng Manggagawa vs. NLRC (219 SCRA 536)
FACTS: On December 3, 1986, IBM, the sole and
exclusive bargaining representative of all daily-paid workers of the Metro Manila plants of San Miguel Corporation, entered into a collective bargaining agreement with San Miguel Corporation. Said collective bargaining agreement was ratified by the general membership. Thereafter, IBM assessed each member the amount of P1,098.00 to be deducted from the lump sum of P10,980.00 of which each employee was to receive under the CBA. Several employees protested and refused to sign the authorization slip for the deduction. As a result, the said employees were expelled from the union. The affected employees then filed
a complaint with the Arbitration Branch of the NLRC for illegal and exorbitant deduction and illegal expulsion.
ISSUE: Does the Arbitration Branch of the NLRC have
jurisdiction?
HELD: NO. The NLRC has no jurisdiction because the
subject matter of the suit is an INTRA-UNION DISPUTE. This is an intra-union dispute – a dispute between the labor union and its members. Art. 226 of the Labor Code vests on the BLR the jurisdiction to act on all inter-union or intra-union disputes.
Inter-Union Disputes:
-‐ A controversy between and among legitimate labor unions.
Effect of Pendency of Inter-Union or Intra-Union Disputes
-‐ On the rights and obligations of the PARTIES:
o The rights, relationships and obligations of the parties-litigants against each other and other parties-in-interest prior to the filing of the petition continue to remain until the finality of the decision.
-‐ On a Petition for Certification Election:
o The pendency of an inter-union or intra-union dispute or other related labor relations dispute is not a prejudicial question to a petition for certification election.
o Thus, pendency is not a ground for suspension or dismissal of the petition for certification election.
Related Labor Relations Disputes:
-‐ Any conflict between a labor union and the employer or any individual, entity or group that is not a labor organization or workers’ association is a related labor relations disputes.
o Example: Cancellation of union
registration and interpleader. The National Conciliation and Mediation Board:
-‐ Composed of an Administrator and two (2) Deputy Administrators and as many Conciliators-Mediators as the needs of the public service requires.
-‐ It exercises the following functions:
o Formulate policies, programs, standards, procedures, manuals of operation, and guidelines pertaining to effective mediation and conciliation of labor disputes;
o Perform preventive mediation and conciliation functions;
o Coordinate and maintain linkages with other sectors or institutions and other government authorities concerned with matters relative to the prevention and settlement of labor disputes;
o Formulate policies, plans, programs, standards, procedures, manuals of
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operation and guidelines pertaining to the promotion of cooperative and non-adversarial schemes, grievance handling, voluntary arbitration and other voluntary modes of dispute settlement;
o Administer the voluntary arbitration program; maintain/update a list of voluntary arbitrators; compile arbitration awards and decisions;
o Provide counselling and preventive mediation assistance particularly in the administration of collective agreements;
o Monitor and exercise technical
supervision over the Board programs being implemented in the regional offices; and
o Perform such other functions as may be provided by law or assigned by the Secretary of Labor and Employment. Art. 227. Compromise Agreements -- Any compromise
settlement, including those involving labor standard laws, voluntarily agreed upon by the parties with the assistance of the Bureau or theregional office of the Department of Labor, shall be final and binding upon the parties. The National LaborRelations Commission or any court, shall not assume jurisdiction over issues involved therein except in case of non-compliance thereof or if there is prima facie evidence that the settlement was obtained through fraud, misrepresentation, or coercion.
COMMENT:
Compromise Agreement:
-‐ “Compromise”: A contract whereby the parties by making reciprocal concessions, avoid a litigation or put an end to one already commenced.
o The nature of compromise is such that a party must give up some of the rights that he has in consideration of the same act on the part of the other side.
-‐ Labor Code recognizes compromise settlement as a mode of settling labor or industrial disputes. -‐ Parties can validly enter into a compromise not
only on controversies involving labor standards, but also on other labor disputes.
Conclusiveness of Compromise:
-‐ A compromise is conclusive and binding even if it is not judicially approved.
-‐ NLRC or any court shall not assume jurisdiction over issues that have been subject of a compromise settlement, except in case of non-compliance thereof or if there is prima facie evidence that the settlement was obtained through fraud, misrepresentation, or coercion.
-‐ A compromise cannot later be disowned or set aside merely because a party has changed his mind.
o However, if the consideration for the compromise was very much less than the amount which the employee was entitled, it may be set aside for being contrary to law, morals or public policy.
Case: Olaybar vs. NLRC (237 SCRA 819)
FACTS: Ten (10) employees were terminated by X
Corporation on the ground of retrenchment. Contesting the legality of their retrenchment, the 10 employees lodged a complaint for illegal dismissal with the Regional Arbitration Branch of the NLRC. The Labor Arbiter dismissed the complaint but ordered X Corporation to pay the 10 employees their respective separation pay. Unsatisfied, the employees appealed to the NLRC. Pending appeal, the employees executed separate affidavits stating, among others, their intention to withdraw their appeal since they had already received the separation pay decreed in the decision of the Labor Arbiter. These affidavits were not, however, submitted to the NLRC. For some inexplicable reason, neither the 10 employees nor X Corporation brought to the attention of the NLRC the crucial fact that they had already amicably settled their dispute. Unaware of the settlement, the NLRC rendered a decision in favour of the 10 employees by ordering their reinstatement with back wages. The employees then moved for the execution of the NLRC decision which X Corporation opposed on the ground that the decision has been rendered moot and academic by the amicable settlement of the case.
ISSUE: Whether or not the NLRC acted correctly in
denying the motion for execution?
HELD: YES. It is true that the NLRC reversed the Labor
Arbiter’s decision on appeal, but when the NLRC rendered its decision, it unknowingly adjudicated a case which, for all intents and purposes, had already been closed and terminated by the parties themselves when they agreed on a settlement. This is the clear import of the rule that compromises and settlements have the effect and conclusiveness of res judicata upon the parties.
Compromise Through Lawyer or Representative: -‐ A compromise entered into through a lawyer or
representative is conclusive or binding only: o When the client has expressed his
consent to compromise; or
o When the lawyer or representative is equipped with a special power of attorney.
-‐ Without such express consent or special power of attorney, any compromise entered into by a lawyer or representative will not bind the party concerned, unless the latter signs or avails of the benefits under the compromise agreement.
Case: Jag &Haggar Jeans and Sportswear Corp. vs. NLRC (241 SCRA 635)
FACTS: A decision was rendered by the NLRC ordering
the reinstatement of 114 employees. The Company filed a motion of reconsideration. During the pendency of the motion for reconsideration, the Company and the Union
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entered into a compromise agreement whereby the Company and the Union agreed that the affected employees will just be paid separation pay. Of the 114 affected employees, 102 availed of the benefits provided for under the Compromise Agreement. The 12 remaining employees then moved for the execution of the NLRC decision. The Company opposed the motion contending that the Compromise Agreement was deemed ratified by the union members.
ISSUE: Whether or not the Compromise Agreement
entered into by the company and the Union is binding upon the employees?
HELD: NO. The Compromise Agreement is not binding
upon the 12 employees who neither signed the compromise agreement nor availed of its benefits. Inasmuch as what was being waived under the Compromise Agreement was the right of the affected employees to reinstatement, such waiver must be exercised personally by the employees concerned.
Compromise on a Final Judgment:
-‐ The law does not limit compromises to cases about to be filed or cases already pending on court.
-‐ Valid for the parties to enter into a compromise despite the fact that a final judgment has already been rendered.
Remedy if the Compromise is Violated:
-‐ The aggrieved party can avail of the following remedies:
o In case of violation of a Compromise Agreement, the aggrieved party can:
(a) File the necessary action action or motion to enforce the compromise; or
(b) Regard the compromise as
rescinded and insist upon his original demand.
-‐ In case of violation of a Compromise Judgment:
(a) File a motion for execution, in case of non-compliance;
(b) File an action to annul the compromise judgment on the ground of mistake, fraud, violence, intimidation, undue influence, or falsity in the execution of the
compromise embodied in the
judgmentl or
(c) File a petition for relief from judgment under Rule 38 of the Rules of Court on the ground that the judgment was obtained through
fraud, mistake or excusable
negligence.
Reduction of Attorney’s Fees – Not a Bar to Approval of Compromise:
-‐ Lawyer’s rights may not be invoked as a ground for disapproving a compromise.
-‐ Lawyer affected can always enforce his right in a proper proceeding but said right may not be used to prevent the approval of the compromise. Quitclaim:
-‐ A quitclaim executed in favour of a company by an employee amounts to a valid and binding compromise agreement.
-‐ The current doctrinal policy of the Supreme Court is that not all waivers and quitclaims are invalid as against public policy.
-‐ Once an employee executes a quitclaim in favour of the employer, he is thereby estopped from filing any further claim against his employer arising from his employment.
Art. 228. (Repealed by B.P. 130)
Art. 229. Issuance of subpoenas. - The Bureau shall have
the power to require the appearance of any person or the production of any paper, document or matter relevant to a labordispute under its jurisdiction, either at the request of any interested party or at its own initiative.
COMMENT:
Power of the Bureau of Labor Relations to Issue Subpoena:
-‐ Extends only to matters relevant to the labor dispute under its jurisdiction.
Art. 230. Appointment of Bureau Personnel. - The Secretary of Labor and Employment may appoint, in addition to the present personnel of the Bureau and the Industrial Relations Divisions, such number of examiners and other assistants as may be necessary to carry out the purpose of the Code.
COMMENT:
Authority to Appoint Personnel:
-‐ Authority to the Secretary of Labor and Employment to appoint personnel as may be needed by the Bureau of Labor Relations in carrying out the purposes of the Labor Code.
Art. 231. Registry of Unions and File of Collective Bargaining Agreements -The Bureau shall keep a registry of legitimatelabor organizations. The Bureau shall also maintain a file of all collective bargaining agreements and other related agreements and records of settlement of labor disputes and copies of orders and decisions of voluntary arbitrators. The file shall be open and accessible to interested parties under conditions prescribed by the Secretary of Labor and Employment, provided that no specific information submitted in confidence shall be disclosed unless authorized by the Secretary, or when it is at issue in any judicial litigation, or when public interest or national security so requires.
Within thirty (30) days from the execution of a Collective Bargaining Agreement, the parties shall submit copies of the same directly to the Bureau or the Regional Offices of the Department of Labor and Employment for registration, accompanied with
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verified proofs of its posting in two conspicuous places in the place of work and ratification by the majority of all the workers in the bargaining unit. The Bureau or Regional Offices shall act upon the application for registration of such Collective Bargaining Agreement within five (5) calendar days from receipt thereof. The Regional Offices shall furnish the Bureau with a copy of the Collective Bargaining Agreement within five (5) days from its submission. The Bureau or Regional Office shall assess the employer for every Collective Bargaining Agreement a registration fee of not less than one thousand pesos (P1,000.00) or in any other amount as may be deemed appropriate and necessary by the Secretary of Labor and Employment for the effective and efficient administration of the Voluntary Arbitration Program. Any amount collected under this provision shall accrue to the Special Voluntary Arbitration Fund.
The Bureau shall also maintain a file and shall undertake or assist in the publication of all final decisions, orders and awards of the Secretary of Labor and Employment, Regional Directors and the Commission.
COMMENT:
Registration of Collective Bargaining Agreements: -‐ Purpose of Registration:
o To put notice on the existence of such agreement in order to promote its stable and undisturbed administration.
-‐ Legal effect of Registration:
o Registration of a collective bargaining agreement is not essential to its validity. o Even if not registered, CBA is still valid
and binding between the parties, regardless of whether or not the same has been certified by the BLR. (Liberty
Flour Mills Employees vs. Liberty Flour Mills)
-‐ Registration Procedure:
o An application for registration should be filed with the Regional Office of the DOLE which issued the union’s certificate of registration or certificate of creation of chartered local.
o If the certification of creation of the chartered local was issued by the BLR, application shall be field with the Regional Office of the DOLE which has jurisdiction over the place where it principally operates.
o Application for registration of
multi-employer collective bargaining
agreements shall be filed with the BLR. -‐ Period within which to Register:
o Within thirty (30) days from execution. -‐ Supporting Documents:
o Application shall be accompanied by two (2) copies of the following documents: (a) Collective bargaining agreement; (b) Statement that the collective
bargaining agreement was posted in at least two (2) conspicuous places in the establishment for at least five (5) days before its ratification; and (c) Statement that the collective
bargaining agreement was ratified by the majority of the employees in the bargaining unit.
-‐ Posting of CBA
o The collective bargaining agreement must be posted within five (5) days prior to its ratification, in at least two (2) conspicuous places in the establishment. o This is a mandatory requirement.
o Purpose: To inform employees in the
bargaining unit of the contents of the agreement so that they could intelligently decide on whether to accept the same or not.(Associated Labor Union vs. FerrerCalleja)
o If the collective bargaining agreement was not posted in accordance with the rules, the application for registration shall be disapproved.
Remedy from denial of CBA registration: -‐ Re-Filing:
o If the application for registration was denied for failure to complete the registration requirements within the ten-day period from notice, the remedy is to re-file the application with complete supporting documents.
-‐ Appeal:
o If the application for registration is denied on other grounds, the remedy is to appeal the order of denial within ten (10) days from receipt to:
(a) Bureau of Labor Relations – if the order of denial was issued by the Regional Office of the DOLE; or
(b) Office of the Secretary of Labor and Employment – if the order of denial was issued by the BLR.
Art. 232. Prohibition on Certification Election - The Bureau shall not entertain any petition for certification election or any other action which may disturb the administration of duly registered existing collective bargaining agreements affecting the parties except under Articles 253, 253-A and 256 of this Code.
COMMENT:
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-‐ The existence of a duly registered CBA will bar the holding of a certification election.
-‐ Purpose: To promote stability and fairness in
collective bargaining agreements.
-‐ If there is a duly registered CBA, a petition for certification election can only be entertained within the 60-day period prior to the expiration of the 5-year term of the CBA.
-‐ A petition for certification election field outside of the 60-day period prior to the expiration of the term of a duly registered CBA will have to be dismissed because it will disturb the administration of duly registered existing CBAs.
Exceptions to the Contract-Bar Principle:
-‐ There are certain type of collective bargaining agreements which do not fall within the operation of the contract-bar principle, namely:
(a) Those entered into with a labor organization which has not been certified as the sole and exclusive collective bargaining representative but merely accorded voluntary recognition by the management despite the existence of
another labor organization seeking
recognition.
(b) Those which are not duly registered with the Bureau of Labor Relations or the appropriate regional office of the DOLE.
(c) Those which are incomplete, specifically those which do not provide for economic benefits to employees.
(d) Those hastily entered into prior to or during the sixty-day freedom period.
(e) Those which can no longer foster industrial peace and stability because of the schism in the union.
Illustrative Cases:
Associated Labor Union vs. Ferrer-Calleja (173 SCRA 178) FACTS: On May 7, 1986, ALU demanded that it be
recognized as the sole and exclusive bargaining representative of the employees of GAW Trading. On May 9, 1986, another union (SPFL), who was also demanding recognition, staged a strike against GAW Trading. On May 12, 2986, GAW Trading voluntarily recognized ALU as the sole and exclusive bargaining representative of the employees. ALU and Gaw Trading signed and executed a CBA, but the registration was done without the CBA being posted in at least two (2) conspicuous places in the establishment five days before its ratification. ALU justified the omission by saying it could not post the CBA because of the strike staged by SPFL. On May 28. 1986, SPFL filed a petition for certification election. ALU sought the dismissal of the petition by invoking the contract-bar principle.
ISSUE: Will the CBA between ALU and GAW Trading bar
the holding of a certification election?
HELD: NO. The CBA will not bar the holding of a
certification election because it was entered into with the labor union that was merely accorded voluntary recognition by the GAW Trading despite the presence of another union that was also seeking recognition. ALU’s standing as an
exclusive bargaining representative is dubious. Hence, a certification election could be properly ordered. Additionally, the posting requirement was not complied with. Hence, the CBA is defective. Even if it was registered with the DOLE, it cannot be considered as duly registered.
Buklod Ng Saulog Transit vs. Cassalla (99 Phil. 16)
FACTS: On December 7, 1953, a petition for certification
election among the employees of Saulog Transit was filed. Said petition was opposed by the BuklodngSaulog Transit on the ground that it had already entered into a collective bargaining agreement with Saulog Transit on July 15, 1953. One month after the filing of the petition for certification election, the Buklod Ng Saulog Transit and Saulog Transit executed a Supplementary Agreement. The Supplementary Agreement, however, has no clear-cut stipulation on the rates of pay, wages, hours of work and other conditions of employment.
ISSUE: Whether or not the collective bargaining agreement and the supplementary agreement will bar the holding of a certification election?
HELD: NO. The CBA will not bar the holding of a certification election because it is incomplete, considering it does not touch in substantial terms the rates of pay, wages, hours of work and other terms and conditions of employment but seeks merely to establish a grievance procedure for drivers, conductors and inspectors who are members of Buklod Ng Saulog. Neither can the supplementary agreement bar the holding of a certification election for it was entered into after the filing of the petition for certification election.
Associated Trade Unions vs. Noriel (88 SCRA 96)
FACTS: ATU and Synthetic Marketing had a CBA which
was due to expire on October 31, 1977. The said CBA was renewed five months and twenty-one days prior to the expiration of the old CBA. The new CBA was registered with the BLR. Within the sixty-day freedom period, a petition for certification election was filed by FFW. ATU opposed the petition on the ground that it is contract-barred by virtue of the existence of a duly registered CBA. FFW assailed the validity of the said CBA on the ground that it had been executed 5 months and 21 days prior to the expiration of the old CBA and that it was not ratified by the members of the bargaining unit.
ISSUE: Whether or not the new CBA will bar the holding of
a certification election?
HELD: NO. The new CBA was hastily and prematurely
entered into precisely for the purpose of avoiding the holding of a certification election. The new CBA was not yet in existence when the petition for certification election was filed. Clearly, the contract-bar principle will not apply.
Firestone vs. Estrella (81 SCRA 49)
FACTS: ALU and Firestone had a CBA which was to be
effective from February 1, 1973 to January 31, 1976. On February 1, 1974, ALU and Firestone entered into a Supplementary Agreement extending the life of the CBA for one (1) year. The extension was neither ratified nor submitted to the DOLE. On February 10, 1976, ten (10) days after the original expiry date of the CBA, the Firestone
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Tire and Rubber Company Employees Union filed a petition for certification election. ALU moved for the dismissal of the petition by invoking the contract-bar principle.
ISSUE: Is the contract-bar principle applicable?
HELD: NO. A collective bargaining agreement does not
operate as a bar to representation proceeding, where it is shown that because of a schism in the union, the contract can no longer serve to promote industrial stability and the direction of the election is in the interest of industrial stability as well as in the interest of the employees’ right in the selection of their bargaining agreement. Basic to the contract-bar rule is the proposition that the delay of the right to select representative can be justified only where stability is deemed paramount. Excepted from the contract-bar rule are certain types of contracts which do not foster industrial stability.
Effect of Automatic Renewal Clause:
- A collective bargaining agreement which provides for automatic renewal in the absence of notice by one of the contracting parties of intention to alter, modify or terminate it prior to a specific period preceding the termination will operate as a bar to certification election.
- This rule does not apply where a contesting union has given a timely notice to the employer or has seasonably filed a petition for certification election prior to the specified date for automatic renewal.
Art. 233. Privileged communication. - Information and statements made at conciliation proceedings shall be treated as privileged 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.
COMMENT:
The Philosophy Behind the Privilege:
-‐ To encourage the parties to make full disclosure of facts and circumstances without fear in order to facilitate the settlement of labor disputes in line with the policy of the State to promote and emphasize mediation and conciliation as modes of settling labor or industrial disputes.
TITLE IV
LABOR ORGANIZATIONS CHAPTER I
REGISTRATION AND CANCELLATION
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. COMMENT:
Labor Organization:
-‐ A union or association of employees which exists in whole or in part for the purpose of collective bargaining or of dealing with employers concerning terms and conditions of employment. Significance of Registration:
-‐ Registration of a labor organization is necessary for it to acquire legal personality and enjoy the rights and privileges enumerated in Art. 242 of the Labor Code.
Purpose of Registration:
-‐ To protect both labor and public against abuses, fraud or impostors who pose as organizers, although not truly accredited agents of the union they purport to represent.
Constitutionality:
-‐ The law requiring the registration of labor organizations is not unconstitutional because it is a valid exercise of the police power.
-‐ Not a limitation on the right of assembly or association, considering that the right of assembly or association may be exercised with or without registration.
Legal Personality of Labor Organizations:
-‐ A labor organization acquires legal personality and attains the status of legitimacy upon the issuance in its name of a Certificate of Registration.
-‐ An unregistered labor organization can acquire legal personality and attain the status of legitimacy by affiliating with a duly registered Federation or National Union; becomes a Chartered Local. -‐ A Chartered Local, therefore, need not be
independently registered. Effect of Incorporation:
-‐ A labor union organized under the Corporation Law merely gives it juridical personality before the regular courts, but it will not entitle such union to the rights and privileges accorded by law to legitimate labor organizations.
-‐ Registration with the DOLE makes a labor organization legitimate.
Registration of Independent Union:
-‐ Independent Union: a labor organization operating
at the enterprise level whose legal personality is derived through independent registration.
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-‐ To register an independent union, an application for registration should be filed with the Regional Office of the DOLE where it principally operates. -‐ The application for registration should be
supported by the following documents:
(a) Name of the applicant labor union, its principal address, the names of its officers and their respective addresses, approximate number of employees in the bargaining unit where it seeks to operate, and a statement that it is not reported as a chartered local of any federation or local union;
(b) Minutes of the organizational meetings and the list of workers who participated in such meetings; (c) Names of all its members comprising
at least twenty percent (20%) of the employees in the bargaining unit; (d) Annual financial reports if the
applicant has been in existence for one or more years; and
(e) Constitution and By-Laws, minutes of its adoption or ratification, and the list of the members who participated in it.
Registration of Workers’ Association:
-‐ Workers’ Association: An organization of workers
created for the mutual aid and protection of its members for any legitimate purpose other than collective bargaining.
-‐ To register a workers’ association, an application should be filed with the Regional Office of the DOLE where it principally operates.
-‐ The application should be supported by the following documents:
(a) Name of the applicant association, its principal address, the names of its officers and their addresses; (b) Minutes of the organizational
meeting, and the names of the individual members who participated therein; and
(c) Constitution and By-Laws to which must be attached the names of ratifying members, the minutes of adoption or ratification of the constitution and by-laws and the date when the ratification was made, unless ratification was done in the organizational meeting, in which case such fact shall be reflected in the minutes of the organizational meeting.
Change of Name of Labor Organization:
-‐ A Notice of Change of Name shall be filed with the BLR or the Regional Office of the DOLE where the
labor organization’s certificate of registration or certificate of creation of a chartered local was issued.
-‐ The notice of change of name shall be accompanied by the following documents:
(a) Proof of approval or ratification of change of name; and
(b) Amended constitution and by-laws. -‐ The change of name of a labor organization does
not affect its legal personality.
Merger or Consolidation of Labor Organization:
-‐ A Notice of Merger or Consolidation shall be filed with:
(a) Regional Office of the DOLE that issued the Certificate of Registration – in case of independent labor unions and workers’ associations; (b) Regional Office of the DOLE that
issued the Certificate of Creation of Chartered Local – in case of chartered locals; or
(c) Bureau of Labor Relations – in case of federations or national unions. -‐ Supporting Documents for Merger:
o Notice of merger shall be accompanied by the following documents:
(a) Minutes of merger convention or general membership meeting of all the merging labor organizations, and list of their respective members who approved the same; and
(b) Amended constitution and by-laws and minutes of its ratification, unless ratification transpired during the merger convention, which fact shall be indicated accordingly.
-‐ Supporting Documents for Consolidation: o Notice of consolidation shall be
accompanied by the following
documents:
(a) Minutes of consolidation convention of all the consolidating labor organizations and list of their respective members who approved the same; and
(b) Amended constitution and by-laws and mintues of its ratification, unless ratification transpired during the consolidation convention, which fact shall be indicated accordingly. -‐ Effect of Merger:
o The legal existence of the absorbed labor organization ceases, while the legal existence of the absorbing labor organization subsists.
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o All rights, interests and obligations of the absorbed labor organizations are transferred to the absorbing organization. -‐ Effect of Consolidation:
o The legal existence of the consolidating labor organization shall cease and a new labor organization is created.
Remedy:
-‐ Re-Filing of Application
o Re-file application or notice with complete supporting documents.
Art. 235. Action on the Application - The Bureau shall act on all applications for registration within thirty (30) days from filing.
All requisite documents and papers shall be certified under oath by the secretary or the treasurer of the organization, as the case may be, and attested to by its president.
COMMENT:
Significance of the 30-Day Period:
-‐ The BLR shall act on all applications for registration within thirty (30) days from filing. -‐ The mere filing of the requisite documents and
papers does not automatically oblige the BLR to issue a certificate of registration.
-‐ The BLR is duty bound to further check if the registration requirements under Art. 234 have been sedulously complied with.
Certification and Attestation of Documents:
-‐ Application for registration and all its supporting documents are required to be:
(a) Certified under oath by the Secretary Treasurer of the organization; and (b) Attested to by the President. -‐ Both requirements must be strictly complied with. -‐ Mandatory attestation requirement also applies to
notice of change of name, notice of merger, and notice of consolidation and all their supporting documents.
Case: Progressive Development Corporation vs. Secretary of Labor (205 SCRA 802)
FACTS: KILUSAN filed a petition for certification election
among the rank and file employees of PDC, alleging that it is a legitimate labor federation. PDC sought the dismissal of the petition on the ground that the constitution and by-laws was merely attested to by the union president but it was not certified under oath by the union secretary or the union treasurer, hence not acquiring legal personality. According to the Med-Arbiter, the mere issuance of a Charter Certificate by the federation was sufficient compliance with the rules.
ISSUE: Is the Med-Arbiter correct?
HELD: NO. A local chapter will become a legitimate labor
organization only if the required documents and papers are certified under oath by the secretary or treasurer of the organization and attested to by its president. Hence PDEU
did not acquire legal personality. Consequently, it cannot file a petition for certification election.
Purpose of Certification and Attestation:
-‐ Preventive measures against the commission of fraud.
Remedies:
-‐ Mandamus:
o If registration is refused despite
compliance with all the legal
requirements for registration, the remedy of mandamus can be availed of to compel the registration of the labor organization.
-‐ Petition for Cancellation of Registration: o If the registration is granted, a petition for
cancellation of registration may be filed on any of the grounds provided for in Art. 239 of the Labor Code.
o The remedy of certiorari is not available because the act of approving an application for registration of a labor organization is not a judicial function but a ministerial duty.
Art. 236. Denial of Registration; Appeal - The decision of the Labor Relations Division in the regional office denying registration may be appealed by the applicant union to the Bureau within ten (10) days from receipt of notice thereof.
COMMENT:
Grounds for Denial of Registration:
(a) Falsification or serious irregularities in the application for registration or its supporting documents;
(b) Non-compliance with the requirements for registration, particularly the certification and attestation requirements; or
(c) Failure to complete the registration requirements within thirty (30) days from notice.
Remedy From Denial of Registration: -‐ Appeal:
o If the application for registration is denied on grounds other than failure to submit the complete requirements, the remedy is to appeal the order within ten (10) days from receipt to the:
(a) Bureau of Labor Relations – if the order of denial was issued by the Regional Office of the DOLE; or (b) Office of the Secretary of
Labor and Employment – if
the order of denial was issued by the BLR.
Art. 237. Additional Requirements For Federation or National Unions - Subject to Article 238, if the applicant for registration is a federation or a national union, it
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shall, in addition to the requirements of the preceding Articles, submit the following:
(a) Proof of the affiliation of at least ten (10) locals or chapters, each of which must be a duly recognized collective bargaining agent in the establishment or industry in which it operates, supporting the registration of such applicant federation or national union; and
(b) The names and addresses of the companies where the locals or chapters operate and the list of all the members in each company involved.
COMMENT:
Federation or National Union:
-‐ A labor organization with at least ten (10) affiliates or chartered locals, each of which must be a duly recognized or certified collective bargaining agent. Registration of Federation or National Union:
-‐ Application for registration should be filed with the BLR.
-‐ The application should be supported by the following documents:
(a) Statement indicating the name of the applicant federation or national union, its principal address, the names of its officers and their respective addresses;
(b) Minutes of the organizational meetings and the list of workers who participated in such meetings; (c) Annual financial reports if the
applicant has been in existence for one or more years;
(d) Constitution and by-laws, minutes of its adoption or ratification, and the list of the members who participated in it.
(e) Resolution of affiliation of at least ten (10) legitimate labor organization, whether independent or chartered locals, each of which must be a recognized or certified bargaining representative on the establishment where it seeks to operate; and (f) Names and addresses of the
companions where the affiliates operates and list of all the members in each company involved.
Composition of a Federation or National Union: -‐ Affiliates:
o Independently registered unions, hence, they have a legal personality of their own, separate and distinct from that of the mother union.
Chartered Locals:
-‐ Not independently registered unions – their legal personality is derived from their mother union or
federation, upon issuance of a Certificate of Creation of Chartered Local.
Nature of Relationship Between Federation and Local Union:
-‐ Principal-agent
-‐ The local union or affiliate is the principal, while the federation is the agent.
-‐ Principal-agent relationship exists even if the local union is not independently registered.
Case: Filipino Pipe & Foundry vs. NLRC (318 SCRA 68) FACTS: NLU, a national federation of labor unions, filed in
behalf of its local chapter, the FPWU-NLU, a notice of strike signed by the president of the federation. Without waiting for the outcome of the conciliation conference, FPWU-NLU staged the strike. Upon petition of the company, the NLRC declared the strike illegal. NLU claimed that it cannot be held liable for damages because it is a mere agent of the local union.
ISSUE: Who is liable for damages, NLU (federation) or
FPWU-NLU (local union)?
HELD: The local union (FPW-NLU) is liable for the
damages sustained by the company as a result of the illegal strike. As the local union, it is considered as the principal. Being just an agent, the notice of strike filed by the NLU is deemed to have been filed by its principal, the FPWU-NLU. This is so even if FPWU-NLU is not independently registered.
Case: Elisco-Elirol Labor Union vs. Noriel (80 SCRA 682) FACTS: Elisco-Elirol Labor Union affiliated itself with the
National Federation of Labor Union (NAFLU). In February 1974, the Elisco-Elirol Labor Union-NAFLU entered into a collective bargaining agreement with the company. On May 28, 1975, the members of Elisco-Elirol Labor Union-NAFLU disaffiliated from NAFLU and formed themselves into an independent union.
ISSUE: Which of the two unions has the right to be
recognized as the collective bargaining representative and ultimately administer the collective bargaining agreement – NAFLU or Elisco-Elirol Labor Union?
HELD: Elisco-Elirol Labor Union has the right to be
recognized as the collective bargaining representative and ultimately administer the CBA. As the local union, Elisco-Elirol Labor Union is the principal party to the CBA. The disaffiliation of Elisco-Elirol Labor Union from NAFLU did not create a new union but merely detached the local union from its mother federation.
Creation of a Chartered Local:
-‐ A duly registered federation or national union may directly create a chartered local by submitting to the Regional Office of the DOLE two (2) copies of the following documents:
(a) Charter Certificate issued by the federation or national union
indicating the creation or
establishment of the local/chapter; (b) Names of the local/chapter’s offices,
their addresses, and the principal office of the local/chapter;
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(c) Constitution and by-laws of the local/chapter.
-‐ Documents should be certified under oath by the Secretary or Treasurer of the local/chapter and attested by its president.
Affiliation of an Independent Union:
-‐ An independent union may affiliate with a federation or national union by obtaining the following:
(a) Approval of the majority of the union members in a general membership meeting duly called for the purpose; and
(b) Resolution of affiliation from the board of directors of the union. The legal effect of Affiliation:
-‐ When a labor union affiliates with a federation, it becomes subject to the laws of the federation. -‐ The constitution and by-laws of the federation
governs the relationship between the federation and the affiliate or local union.
-‐ An independent union which affiliates with a federtation or national union does not lose its legal personality.
Case: Chrysler Philippines vs. Estrella (86 SCRA 338) FACTS: CPLU is a labor union. Sometime in March 1974,
CPLU affiliated with a labor federation named ALU. During the affiliation, CPLU-ALU entered into a CBA with CPC. Thereafter, CPLU disaffiliated from ALU. Subsequently, CPLU filed a Petition for Direct Certification praying that it be directly certified as the exclusive collective bargaining agent of the hourly-paid workers of CPC. CPLU-ALU sought to dismiss the petition on the ground that CPLU is a non-existing union since it has been superseded by CPLU-ALU.
ISSUE: Whether or not CPLU has lost its legal personality
as a labor organization when it affiliated with its mother union, ALU?
HELD: NO. While it is true that its name was changed to
CPLU-ALU, such change was only a matter of form designed to convey the idea that CPLU had affiliated with ALU, but it did not affect the legal personality of the affiliating union. The only way by which a labor organization could be disenfranchised is cancellation of its registration.
Case: Adamson & Adamson, Inc., vs. CIR (127 SCRA 268) FACTS: The Adamson & Adamson, Inc. Salesmen
Association is the union at Adamson & Adamson, Inc. it is affiliated with the FFW. Subsequently, the supervisors of Adamson& Adamson organized themselves into a union named Adamson & Adamson, Inc. Supervisory Union. It is likewise affiliated with FFW. The rank-and-file employees also organized themselves into a union named Adamson & Adamson Independent Workers Union, and affiliated with the FFW. Adamson & Adamson, Inc. questioned the affiliation of the unions with FFW, arguing that the affiliation of the three unions with the same federation transforms them into one union because the three unions would now
be governed by the constitution and by-laws of the federation.
ISSUE: Is the contention valid?
HELD: NO. The three unions remained a basic unit free to
serve the common interest of all its members. The inclusion of the name FFW after the name of the local unions does not mean that the local unions cannot stand on their own. Report of Affiliation:
-‐ The affiliation of an independently registered labor union with a federation or national union shall be reported to the Regional Office of the DOLE that issued its certificate of registration.
-‐ The Report of Affiliation shall be accompanied by the following documents:
(a) Resolution of the labor union’s board of directors approving the affiliation; (b) Minutes of the general membership
meeting approving the affiliation;
(c) Total numbers of members
comprising the labor union and the names of members who approved the affiliation;
(d) Certificate of affiliation issued by the
federation in favour the
independently registered labor union; and
(e) Written notice to the employer concerned if the affiliating union is the incumbent bargaining agent. Disaffiliation:
-‐ A local union has the right to disaffiliate from its mother federation.
-‐ The right of a local union to disaffiliate from the mother federation is primarily dependent upon the constitution and by-laws of the federation.
-‐ Proper time for Disaffiliation:
o Generally, during the 60-day freedom period immediately preceding the expiration of the CBA.
o Exceptionally, disaffiliation may be carried out before the onset of the freedom period, if there is a substantial shift of allegiance on the part of the majority of the members of the union. -‐ Effect of Disaffiliation:
o On the Relationship Between the Local Union and the Federation – Disaffiliation
severs the relationship between the local union and the mother federation. It divests the federation of any and all power to act in representation of the local union.
o On the Collective Bargaining Agreement
– Disaffiliation does not disturb the enforceability and administration of the CBA executed by and between an employer and the federation. The reason is because the local union continues to represent the employees notwithstanding the disaffiliation.
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o On the Legal Personality of the Local Union – An independent union that
disaffiliates from its mother federation does not lose its legal personality because it has its own registration. A chartered local that disaffiliates from its mother federation loses its legal personality because it has no registration of its own.
Art. 238. Cancellation of Registration – The certificate of registration of any labor organization, whether national or local, may be cancelled by the Bureau if it has reason to believe, after due hearing, that the said labor organization no longer meets one or more of the requirements herein prescribed.
COMMENT:
Administrative Cancellation of Registration:
-‐ The certificate of registration of a labor organization may be cancelled administratively for failure to submit to the Regional Office of the DOLE or the BLR which issued its certificate or registration or certificate of creation of chartered local the following documents:
(a) Any amendment to its constitution and by-laws and the minutes of adoption or ratification of such amendments;
(b) Annual financial reports;
(c) Updated list of newly-elected officers, together with the appointive officers or agents who are entrusted with the handling of funds;
(d) Updated list of individual members; (e) Updated list of its chartered locals
and affiliates or member
organizations, CBAs executed and their effectivity period, including an
updated list of authorized
representatives, agents or
signatories in different regions of the country, in case of federations or national unions.
-‐ No certificate of registration shall be administratively cancelled due to non-compliance with the reportorial requirements unless:
(a) Non-compliance is for a continuous period of five (5) years;
(b) The procedural rules were complied with; and
(c) The labor organization concerned has not responded to any of the notices sent or the notices were returned unclaimed.
Art. 239. Grounds for cancellation of union registration. – The following shall constitute grounds for cancellation of union registration:
a. 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; b. Failure to submit the documents mentioned in
the preceding paragraph within thirty (30) days from adoption or ratification of the constitution and by-laws or amendments thereto;
c. Misrepresentation, false statements or fraud in connection with the election of officers, minutes of the election of officers, the list of voters, or failure to submit these documents together with the list of the newly elected/appointed officers and their postal addresses within thirty (30) days from election; d. Failure to submit the annual financial report to the Bureau within thirty (30) days after the closing of every fiscal year and misrepresentation, false entries or fraud in the preparation of the financial report itself; e. Acting as a labor contractor or engaging in the
"cabo" system, or otherwise engaging in any activity prohibited by law;
f. Entering into collective bargaining agreements which provide terms and conditions of employment below minimum standards established by law;
g. Asking for or accepting attorney’s fees or negotiation fees from employers;
h. Other than for mandatory activities under this Code, checking off special assessments or any other fees without duly signed individual written authorizations of the members;
i. Failure to submit list of individual members to the Bureau once a year or whenever required by the Bureau; and
j. Failure to comply with requirements under Articles 237 and 238.
Grounds for Cancellation of Union Registration 1.1 Fraudulent Acts
May be cancelled on the ground of
MISREPRESENTATION, FALSE STATEMENT or FRAUD in connection with:
a. 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
b. Election of officers, minutes of the election of officers, the list of voters; and
c. Preparation of the financial report itself.
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a. Acting as a labor contractor or engaging in the "cabo" system
b. Entering into collective bargaining agreements which provide terms and conditions of employment below minimum standards established by law;
c. Asking for or accepting attorney’s fees or negotiation fees from employers;
d. Checking off special assessments or other fees without individual written check- off authorization, except for mandatory activities under the Labor Code;
e. Violation of Article 241 of the Labor Code regarding rights and conditions of membership in a labor organization.
1.3 Non- compliance with Certain Requirements
a. Failure to submit its constitution and by-laws or amendments thereto, the minutes of ratification and the list of members who took part in the ratification within thirty (30) days from adoption or ratification.
b. Failure to submit the list of the newly elected/appointed officers and their postal addresses within thirty (30) days from election;
c. Failure to submit the annual financial report to the Bureau within thirty (30) days after the closing of every fiscal year.
d. Failure to submit list of individual members to the Bureau once a year or whenever required by the Bureau.
e. Failure to comply with requirements under Articles 234 and 237.
2. Cancellation Procedure
General Rule: The registration of a labor organization
can only be questioned DIRECTLY through a petition for cancellation of registration. COLLATERAL ATTACK is not allowed.
EXCEPTION: Administrative cancellation is proper. 2.1 The Proper Party
GENERAL RULE: Any party-in-interest.
EXCEPTION: If the ground for cancellation is based on
a violation of Article 241 of the LC, only members of the labor organization or workers’ association concerned can file the petition for cancellation.
2.2 Form of Petition
The complaint or petition shall be in WRITING,
VERIFIED UNDER OATH and shall contain the
following:
(a) name, address and other personal
circumstances of the complainant(s) or petitioner(s);
(b) name, address and other personal
circumstances of the respondent(s) or person(s) charged;
(c) nature of the complaint or petition;
(d) facts and circumstances surrounding the complaint or petition;
(e) cause(s) of action or specific violation(s) committed;
(f) a statement that the administrative remedies provided for in the constitution and by-laws have been exhausted or such remedies are not readily available to the complainant(s) or petitioner(s) through no
(g) fault of his/her/their own, or compliance with such administrative remedies does not apply to complainant(s) or petitioner(s);
(h) relief(s) prayed for;
(i) certificate of non-forum shopping; and (j) other relevant matters.
2.3 VENUE
INDEPENDENT UNION, CHARTERED LOCAL, or WORKERS’ ASSOCIATION: Regional Office of
DOLE that issued its certificate of creation or chartered local.
NATIONAL UNION, INDUSTRY UNION, TRADE UNION CENTERS: Bureau of Labor Relations. 2.4 Appeal
Appealable within TEN (10) days from receipt to the following agencies:
a. BUREAU OF LABOR RELATIONS: if the case was decided by the REGIONAL DIRECTOR of DOLE.
b. SECRETARY OF LABOR AND
EMPLOYMENT: if the case was decided by the BUREAU OF LABOR RELATIONS in the exercise of its ORIGINAL JURISDICTION.
2.4 Finality of Decision Rendered on Appeal
• Decisions of Sec of Labor and Employment are FINAL and EXECUTORY
• Decisions of BLR in the exercise of its appellate jurisdiction are FINAL and EXECUTORY (Not appealable to the Sec of
Labor and Employment)
CASE:
FACTS: ALEU applied for union registration, the application was approved. Abbott Laboratories filed for its cancellation of ALEU on the ground that the application was not signed by atleast 20% of the rank-and-file employees.
The Regional Director of DOLE ordered the cancellation of the registration. ALEU appealed to the BLR, rendered a decision reversing the order of the Regional Director. Abbot appealed the decision to Secretary of Labor and Employment, refused due to lack of jurisdiction.
ISSUE: Whether Sec of Labor and Employment has jurisdiction?
Held: No. the appellate jurisdiction of the Sec of labor and Employment is limited only to a review of
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cancellation proceedings decided by BLR in the exercise of its EXLUSIVE and ORIGINAL Jurisdiction.
3. Effect of Cancellation Proceedings
• During pendency the labor organization continues to enjoy all rights accorded to a legitimate labor organization.
o Can still file for certification
§ Certificate of election proceedings be suspended until the issue have been resolved. (failure: Grave abuse of Discretion) • FINAL ORDER of CANCELLATION: strip a
legitimate labor organization of its rights.
Art. 240. Equity of the incumbent. – All existing federations and national unions which meet the qualifications of a legitimate labor organization and none of the grounds for cancellation shall continue to maintain their existing affiliates regardless of the nature of the industry and the location of the affiliates.
1. The Import of the Law
• Proclaims the right of federation or national union.
• It does not in any way prohibit the disaffiliation of a local union from a federation or national union.
CHAPTER II
RIGHTS AND CONDITIONS OF MEMBERSHIP Art. 241. Rights and conditions of membership in a labor organization. – The following are the rights and conditions of membership in a labor organization:
a. No arbitrary or excessive initiation fees shall be required of the members of a legitimate labor organization nor shall arbitrary, excessive or oppressive fine and forfeiture be imposed;
b. The members shall be entitled to full and detailed reports from their officers and representatives of all financial transactions as provided for in the constitution and by-laws of the organization;
c. The members shall directly elect their officers, including those of the national union or federation, to which they or their union is affiliated, by secret ballot at intervals of five (5) years. No qualification requirements for candidacy to any position shall be imposed other than membership in good standing in subject labor organization. The secretary or any other responsible union officer shall furnish the Secretary of Labor and Employment with a list of the newly-elected officers, together with the appointive officers
or agents who are entrusted with the handling of funds, within thirty (30) calendar days after the election of officers or from the occurrence of any change in the list of officers of the labor organization; (As amended by Section 16, Republic Act No. 6715, March 21, 1989)
d. The members shall determine by secret ballot, after due deliberation, any question of major policy affecting the entire membership of the organization, unless the nature of the organization or force majeure renders such secret ballot impractical, in which case, the board of directors of the organization may make the decision in behalf of the general membership;
e. No labor organization shall knowingly admit as members or continue in membership any individual who belongs to a subversive organization or who is engaged directly or indirectly in any subversive activity;
f. No person who has been convicted of a crime involving moral turpitude shall be eligible for election as a union officer or for appointment to any position in the union;
g. No officer, agent or member of a labor organization shall collect any fees, dues, or other contributions in its behalf or make any disbursement of its money or funds unless he is duly authorized pursuant to its constitution and by-laws;
h. Every payment of fees, dues or other contributions by a member shall be evidenced by a receipt signed by the officer or agent making the collection and entered into the record of the organization to be kept and maintained for the purpose;
i. The funds of the organization shall not be applied for any purpose or object other than those expressly provided by its constitution and by-laws or those expressly authorized by written resolution adopted by the majority of the members at a general meeting duly called for the purpose;
j. Every income or revenue of the organization shall be evidenced by a record showing its source, and every expenditure of its funds shall be evidenced by a receipt from the person to whom the payment is made, which shall state the date, place and purpose of such payment. Such record or receipt shall form part of the financial records of the organization.
