LABOR RELATIONS (Affiliation, Disaffiliation, Merger, Consolidation, Canellation of Charter and Change of Name) AFFILIATION *An affiliate is an independently

registered union that enters into an agreement of affiliation with a federation or national union; - also refers to a chartered local which applies for and is granted an independent registration but does not disaffiliate from its mother federation or national union. Reasons for affiliation: -to secure support or assistance -to utilize expertise in preparing bargaining proposals -to marshal manpower *A federation or national union ceases as such when it loses its locals. (see Arts. 237 and 238) *The relationship between a local chapter and a labor federation or national union is generally understood to be that of agency, where the local is the principal and the federation the agent. *Affiliation by a duly registered local union with a national union or federation does not make the local union lose its legal personality. 9.1 Report of Affiliation; Requirements *An independently registered union affiliating with a federation or national union is required to report such affiliation. The report shall be filed with the Regional Office that issued its certificate of registration. *It shall be accompanied by the ff. Documents: a) Resolution of the Board of Directors approving the affiliation b) Minutes of general membership meeting approving affiliation c) Total number of members comprising the labor union and the names of members who approved the affiliation d) Certificate of affiliation issued by the federation

e) Written notice to employer concerned if the affiliating union is the incumbent bargaining agent. DISAFFILIATION *The local unions remain the basic units of association, free to serve their own interests subject to the restraints imposed by the constitution and bylaws of the national federation, and free also to renounce the affiliation upon the terms laid down in the agreement which brought such affiliation into existence. *In other words, to disaffiliate is a right, but to observe the terms of affiliation is an obligation. *This right is consistent with the constitutional guarantee of freedom of association. *The pendency of an election protest involving both the mother federation and the local union did not constitute a bar to a valid disaffiliation. As the local union had validly disaffiliated, the employer could validly affiliate with another federation. (Skylanders vs. NLRC) *Neither is the disaffiliation from the federation, alleged as an act of disloyalty, a sufficient ground for dismissal from employment. It may sever its affiliation at any time and such disaffiliation cannot be considered disloyalty in the absence of specific provisions in the federations constitution prohibiting disaffiliation. (MSMG-UWP vs. Ramos) Cases: Liberty Cotton Mills Workers Union vs. Liberty Cotton Mills, Inc. Facts: In their CBA, the company recognized the local union, represented by PAFLU, as the sole bargaining agent. While the CBA was still in force, 32 out of 36 members of the union disaffiliated from PAFLU, the mother federation. PAFLU requested the company to terminate the employment of the employees which the company did. Held: The dismissal from employment was not justified. PAFLU, acting for and in behalf of its affiliate, had the status of an agent while the local union remained the basic unit of the association free to secure the common interest of all its members. The constitution and by-laws provided that the local union should remain an affiliate as long as 10 or more of the members evidence their desire to

continue the affiliation. As only 4 did not sign the resolution for disaffiliation, the intent to disaffiliate was manifest. Tropical Hut Employees Union-CGW, et. al. Vs. Tropical Hut Food Market, Inc. There is nothing in the constitution of the NATU or in the constitution of the THEU-NATU that the THEU was expressly forbidden to disaffiliate from the federation. The alleged noncompliance of the local union with the provision in the NATU constitution requiring the service of 3months notice of intention to withdraw did not produce the effect of nullifying the disaffiliation for the ff. grounds: (1)NATU was not a legitimate labor organization and (2) the act of noncompliance with the procedure on withdrawal is premised on purely technical grounds which cannot defeat the fundamental right of selforganization. *In the absence of enforceable provisions in the federations constitution preventing disaffiliation of a local union, a local may sever its relationship with its parent. 10.1 Local Union is the Principal; Federation, the Agent The NATU possessed the status of an agent while the local union remained the basic principal union which entered into contract with respondent company. When the THEU disaffiliated from its mother federation, the former did not lose its legal personality as the bargaining union under the CBA. (Tropical Hut case) *Disaffiliation of employees from their mother union and their formation into a new union do not terminate their status as employees of the corporation, as the employees and members of the local union did not form a new union but merely exercised their right to register their local union . A local union when circumstances so warrant is free to disaffiliate from its mother union. 10.2 When to Disaffiliate -only when warranted by circumstances. *Generally, a labor union may disaffiliate from the mother union to form a local or independent union only during the 60-day freedom period immediately preceding the expiration of the CBA. *The freedom period refers to the last 60 days of the fifth and last year of a CBA. (see Art. 256) *But even before the onset of the freedom period, disaffiliation may still be carried out but such disaffiliation must be effected by a majority of the members in the bargaining unit. >>> Azucena believes that this is only true if the contract of affiliation does not specify the period for possible disaffiliation. If it does, the stipulation must be observed. 10.3 Disaffiliation must be by Majority Decision * Art. 241(d) it has to be decided by the entire membership through secret balloting. *A member or any number of members may disaffiliate from their union during the freedom period. BUT disaffiliating the union itself from the mother union must be supported by the majority of members. If done by a minority, even during the freedom period the act may constitute disloyalty. The minority members breaking away at the wrong time may be expelled from the union and because of the union security clause, may be removed from their employment. Case: Villar, et al. vs. Inciong Had petitioners (disaffiliating union members) merely disaffiliated from the Amigo Employees Union-PAFLU, there could be no legal objections thereto for it was their right to do so. But what petitioners did by the very clear terms of their Sama-samang Kapasiyahan was to disaffiliate the Amigo Employees Union-PAFLU from the PAFLU, an act which they could not have done with any effective consequence because they constituted the minority in the Amigo Employees Union-PAFLU. Neither is there merit to petitioners contention that they had the right to present representation issues within the 60-day freedom period. The petition was filed in the name of the Amigo Employees Union which had not disaffiliated from PAFLU, the mother union. Petitioners being a mere minority of the local union may not bind the majority members of the local union. 10.4 Disaffiliation: Effect on Legal Status *When a union which is not independently registered disaffiliates from the federation, it is not entitled to

the rights and privileges granted to a legitimate labor organization. It cannot file a petition for certification election. 10.5 Disaffiliation: Effect on Union Dues *The obligation of an employee to pay union dues is coterminous with his affiliation. The employees check-off authorization, even if declared irrevocable, is good only as long as they remain members of the union concerned. 10.6. Disaffiliation; Effect on Existing CBA; the Substitutionary Doctrine *The CBA continues to bind the members of the new or disaffiliated and independent union up to the CBAs expiration date. *The SUBSTITUTIONARY DOCTRINE provides that the employees cannot revoke the validly executed collective bargaining contract with their employer by the simple expedient of changing their bargaining agent. The new agent must respect the contract. They can only negotiate with the management for the shortening thereof. REVOCATION OF CHARTER * A federation may revoke the charter issued to a local by serving on the latter a verified notice of revocation, copy furnished to the Bureau on the ground of disloyalty or other grounds specified in the by-laws. -shall divest the local chapter of its legal personality upon receipt of the notice by the Bureau unless the local chapter has acquired independent registration. 11.1 Effect of Cancellation of Registration of Federation or National Union on Locals/Chapters -shall operate to divest its locals of their status as legitimate labor organizations unless the locals are covered by a duly registered CBA. In the latter case, the locals shall be allowed to register as as independent unions, failing which they shall lose their legitimate status upon the expiration of the CBA. MERGER OR CONSOLIDATION MERGER of labor organizations- is the process where a labor organization absorbs another, resulting in the cessation of the absorbed labor organizations existence and the continued existence of the absorbing labor organization.

Effect: to transfer to the absorbing organization all the rights, interest and obligations of the absorbed organization. CONSOLIDATION of unions- refers to the creation and formation of a new union arising from the unification of the two or more unions. Effect: the newly created labor organization acquires all the rights, interests and obligations of the consolidating labor organizations. Distinction: *Consolidation usually occurs between two unions that are approximately the same size, whereas merger often involves larger union merging with a smaller union. Why do unions merge? -to gain access to greater resources and expertise -to eliminate interorganizational conflicts -to maintain job security and institutional survival. 12.1 Notice of Merger/Consolidation of Labor Organizations; Where to File *Notice of merger or consolidation of independednt labor unions, chartered locals and workers associations -Regional Office that issued the certificate of registration/certificate of creation of chartered local of either the merging or consolidating labor organization. *Notice of merger/consolidation of federations or national unions -Bureau 12.2. Requirements of Notice of Merger/Consolidation a) Minutes of convention or general meetings of all merging/consolidating labor organizations with list of members who approved the same b) Amended constitution and by-laws and minutes of its ratification 12.3. Certificate of Registration

-shall bear the registration number of one of the merging labor organizations as agreed upon by the parties. -shall indicate the ff: a) New name b) The fact that it is a merger/consolidation of two or more labor organizations c) Name of labor organizations that were merged or consolidated d) Office or business address e) Date when each of the labor organizations acquired legitimate personality CHANGE OF NAME -Notice shall be filed with the Bureau or the Regional Office, accompanied by proof of approval of change of name and amended constitution and by-laws. 13.1 Effect of Change of Name -legal personality is not affected. -all rights and obligations of a labor organization under its old name shall continue to be exercised.

ratification, and the list of members who took part in the ratification; (b) Misrepresentation, false statements or fraud in connection with the election of officers, minutes of the election of officers, and the list of voters; (c) Voluntary members. dissolution by the

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. 1.CANCELLATION OF REGISTRATION; GROUNDS -Cancellation is the governments act that divests the organization of its status as legitimate labor organization. - Although it does not cease to exist or become unlawful organization, its juridical personality as well as its statutory rights and privileges is suspended. It loses entitlement to the rights enumerated in Art. 242. Requisites for THIRD ground: (By the desire of the union members themselves) 1. Desire to dissolve-voted upon through secret balloting 2. Balloting should take place in a meeting duly called for this purpose 3. 2/3 affirmative vote of the general membership, not just of the quorum. 4. Application for cancellation passed and submitted by the unions governing board which application must be attested to by the president. 1.1 Invalid Grounds -illegal strike

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." "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." "ART. 239. Grounds for Cancellation of Union Registration. - The following may 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

-nonrenewal of registration/permit (provided it has juridical personality when it filed the petition and the court acquired jurisdiction) 1.2 Cabo and other Grounds Deleted Cabo- refers to a person or group of persons or to a labor group which, in the guise of a labor organization, supplies workers to an employer, with or without any monetary or other consideration whether in the capacity of an agent of the employer or as an ostensible independent contractor. Also deleted: *Sweetheart Contract- CBA which provides for terms and conditions of employment below minimum standards established by law. *Asking for or accepting attornerys fees or negotiation fees from employer- but this cause of union cancellation still exists because Art.249 prohibits it as ULP. *Violation of Art.241- if 30% of the members support the petition *Failure to submit annual documentary reportstaken-up under Art.242-A. 1.3. Administrative Cancellation; The Reportorial Requirements Failure of the labor organization to submit the ff. reports for 5 consecutive years authorized the Bureau to institute cancellation proceedings upon its own initiative or upon complaint by any party-ininterest: 1. Any amendment to its constitution and bylaws within 30 days from its adoption 2. Annual financial reports within 30 days after the close of each fiscal year or calendar year. 3. Updated list of newly-elected officers together with the appointive officers or agents entrusted with the handling of funds, within 30 days after each regular or special election of officers or from the occurrence of any change in the officers

4. Updated list of individual members of chartered locals, independent unions and workers associations, within 30 days after the close of each fiscal year; and 5. Updated list of its chartered locals and affiliates or member organization, CBAs executed and their effectivity period in the case of federations or national unions , within 30 days after the close of each fiscal year, as well as updated list of their authorized representatives, agents or signatories in the different regions of the country. The fiscal year shall coincide with the calendar year, unless a different period is prescribed in the constitution or by-laws.