COLLEGE OF LAW
Bar Operations 2008
LABOR LAW II
TABLE OF CONTENTS
THE RIGHT TO SELF ORGANIZATION SHALL ALSO INCLUDE: Why cant supervisors join a union of rank-and-file?
To avoid a situation where supervisors would merge with
Right not to exercise it: the right NOT to join, affiliate with, or assist the rank and file, or where the supervisors' labor
any union, and to disaffiliate or resign from a labor organization, is organization would represent conflicting interests
subsumed in the right to join, affiliate with, or assist any union, and (Dunlop v. Sec. of Labor (1998)).
to maintain membership therein. It is self-evident that just as no
one should be denied the exercise of a right granted by law, so also,
ALIENS
no one should be compelled to exercise such a conferred right
ART. 269
(Reyes v. Trajano (1992))
General Rule: they are strictly PROHIBITED from engaging
Right to withdraw from the organization: the right of the
directly or indirectly in all forms of trade union activities
employees to self-organization is a compelling reason why their
withdrawal from the cooperative must be allowed. As pointed out
Exception: aliens working in the country
by the union, the resignation of the member-employees is an
expression of their preference for union membership over that of a. Have valid permits issued by DOLE
membership in the cooperative (Central Negros Electric b. Reciprocity: That said aliens are nationals of a
Cooperative v. Sec. of Labor (1991)) country which grants the same or similar rights
to Filipino workers
Right to raise issues in behalf of the organization: Luna's remarks
were intended to protect the interests of the members of the
Provident Fund from what he honestly believed was a risky venture IV. Workers with No Right to Self-Organization
on the part of management. His actuations as such should therefore MANAGERIAL AND CONFIDENTIAL EMPLOYEES
be considered as legitimate exercise of the employees' right to self- ART. 245
organization and as an activity for their mutual aid and protection,
aside from being privileged communication protected by the NOT eligible to join, assist or form any labor organization.
constitutional guarantee on free speech (Union of Supervisors v.
Sec. of Labor (1991)) ART. 212 (m)
III. Workers with Right to Self-Organization Managerial employee is one who is vested with powers or
prerogatives:
WORKER QUALIFICATIONS To lay down and execute management policies and/ or
To hire, transfer, suspend, layoff, recall, discharge, assign, or
Employees have the right to form, join or assist labor organizations discipline employees.
for the purpose of collective bargaining or for their mutual aid and
protection. Whether employed for a definite period or not, they Sugbuanon Rural Bank vs. Laguesma (2000)
shall, beginning on his first day of service, be considered as an
employee for purposes of membership in any labor union (UST Confidential employees are those who
Faculty Union v. Bitonio (1999), see also ART. 277(c))
a. Assist or act in a confidential capacity, in regard
Even 1) rank-and-file employees of non-profit medical institutions b. To persons who formulate, determine, and effectuate
are now permitted to form, organize or join labor unions of their management policies [specifically in the field of labor
choice for purposes of collective bargaining (FEU-Dr. Nicanor Reyes relations].
medical Foundation, Inc. v. Trajano (1987)); and 2) members of
religious sects such as the INC, can now form their own union The two criteria are cumulative, and both must be met if an
(Victoriano v. Elizalde Workers Union (1974)). employee is to be considered a confidential employee.
meaning of its own, being composed of employees (which excludes A local union of supervisory employees may be allowed to affiliate
managers, as managers are considered employers under labor with a national federation of labor organizations of rank and file
relations) and for the purpose of collective bargaining. employees. What the law prohibits is that supervisory employees
join a rank and file union.
Art. 245 of the Labor Code does not directly prohibit confidential
employees from engaging in union activities. However, under the The national federation would be representing the respective
doctrine of necessary implication, the disqualification of managerial interests of the 2 groups separately.
employees equally applies to confidential employees Adamson v. CIR (1984)
RATIONALE: Employees should not be placed in a position involving a Individuals employed as supervisors shall not be eligible for
potential conflict of interests. membership in a labor organization of employees under their
supervision but may form separate organizations of their own.
COOPERATIVE MEMBERS
Cooperative Rural Bank of Davao vs Ferrer-Calleja (1988)
2. Local Union Disaffiliation
An employee of such a cooperative who is a member AND CO-
OWNER cannot invoke the right to collective bargaining for certainly NATURE OF RIGHT TO DISAFFILIATE
an owner cannot bargain with himself or his co-owners.
Volkschel Labor Union v BLR (1985)
However, insofar as it involves cooperatives with employees who
are NOT members or co-owners thereof, certainly such employees Right of a local union to disaffiliate from its mother union
are entitled to exercise the rights of all workers to organization, is well-settled. A local union, being a separate and
collective bargaining negotiations, and others as are enshrined in voluntary association, is free to serve the interest of all its
the Constitution and existing laws of the country. members including the freedom to disaffiliate when
circumstances warrant. This right is consistent with the
PD 175: a COOPERATIVE is an organization composed of small constitutional guarantee of freedom of association.
producers and of consumers who voluntarily join together to form
business enterprises which they themselves, own, control and Malayang Samahan v. Ramos (2000)
patronize. Its owners or members are the ones who run and
operate the business while the others are its employees. A local union which has affiliated itself with a federation
is free to sever such affiliation anytime and such
NON-EMPLOYEES disaffiliation cannot be considered disloyalty. In the
Rep. Planters Bank General Services Employees Union v. absence of specific provisions in the federation's
Laguesma (1996) constitution prohibiting disaffiliation or the declaration of
autonomy of a local union, a local may dissociate with its
If union members are not employees, no right to organize parent union.
for the purpose of bargaining and to be certified as
bargaining agent can be recognized.
RULE LEGALITY OF DISAFFILIATION
The labor union who won as sole bargaining agent of the PERIOD OF DISAFFILIATION
employees does not act for its members alone. It
represents all the employees in such a bargaining unit. Tanduay Distillery Labor Union v. NLRC (1987)
Furthermore, what is entitled to protection is labor, not
the labor organization. The latter are merely GENERALLY, a labor union may disaffiliate from the
instrumentalities through which their welfare may be mother union to form a local or independent union ONLY
promoted and fostered. during the 60 day freedom period immediately preceding
expiration of CBA.
Note: By using the word includes and not mean, congress did it does not matter whether the agent is legitimate or not because as
not intend to give a complete definition of employer. But agent it acts as an extension of the personality of the principal and
rather such definition should be complementary to what is not as itself.
commonly understood as employers. Can a legitimate labor organization be composed of both rank
and file employees and supervisory employees? -- No.
- IMPLICATION: the employer may NOT necessarily be the owner
of the business. 3. LABOR DISPUTES
LABOR ORGANIZATION
Art. 212 (g)
LABOR ORGANIZATION:
COMPOSITION: Employees
PURPOSE: Collective Bargaining or of dealing with employers
concerning terms and conditions of employment.
III. Labor Union and Government Regulation -- These supporting documents must be CERTIFIED UNDER OATH by
the secretary/treasurer, and ATTESTED to by its president (ART.234-
1. Union Registration and Procedure A).
as prayed for, and not call for a referendum to decide the issue
When a labor union affiliates with a mother union, it becomes (Kapisanan v. Trajano (1985)).
bound by the laws and regulations of the parent organization. It
becomes subject to the laws of the superior body under whose ELECTION INVALID
authority the local union functions.
o Free and honest elections are indispensable to the enjoyment by
When members of a labor union sow the seeds of dissension and employees and workers of their constitutionally protected right
strife within the union, when they seek the disintegration and to self-organization. If attended by grave irregularities election
destruction of the very union to which they belong they forfeit should therefore be declared INVALID (Rodriguez vs Director
their rights to remain as members. (1988)).
A regular employee CANNOT be removed from his services by o MEMBERS shall determine by secret ballot, after due
employer WITHOUT a just cause or when NOT authorized, deliberation, any question of major policy affecting the entire
otherwise, employee is entitled to reinstatement without loss of membership of the organization
seniority rights/privileges + full backwages, allowances and other o but if such secret ballot becomes impractical
benefits/monetary equivalent from time his compensation was o the BOARD OF DIRECTORS of the organization may make the
withheld up to his actual reinstatement. decision in behalf of the general membership
UNION FUNDS
ELECTION OF OFFICERS RIGHTS/CONDITIONS OF MEMBERSHIP IN A LABOR ORG
QUALIFICATIONS ART 241
Membership in good standing (ART. 241 (c)) (b) Members are entitled to full/detailed financial transaction
Must not have been convicted of any crime involving moral reports
turpitude (ART. 241 (f))
(g) Collection of any fees, dues or other contributions in behalf of
MANNER OF ELECTION the labor org, or any disbursement of its money/funds allowed if
ART. 241 (C) duly authorized by CBL
members shall directly elect their officers (h) Payment of fees, dues or other contributions by member shall
by secret ballot be evidenced by a receipt signed by the officer or agent making the
at intervals of 5 years collection and entered into the record of the org
TENURE (i) Funds of the org shall not be applied for any purpose or object
ART 241 (C) other than those expressly provided by the CBL or authorized by
written resolution adopted by the majority of the members at a
5 years general meeting duly called for the purpose
VOTERS LIST 1. At least once a year within 30 days after the close of its
fiscal year.;
o Only MEMBERS of union can participate in the election of union 2. At such other times as may be required by a resolution of
officers, and the question of eligibility is determined through the the majority of the members of the organization; and
use of the applicable payroll period and employees status during 3. Upon vacating his office.
the applicable payroll period (Tancinco vs Calleja (1988))
(m) Books of accounts and other records of the financial activities
o UNION ELECTION is different from CERTIFICATION ELECTION (see of any labor org shall be open to inspection by any officer or
UST Faculty Union v. Bitonio (1999)). member thereof during office hours
o Union election election of officers of union; members
only can participate.
(n) No special assessment or other extraordinary fees may be
o Certification election election of sole and exclusive
levied upon the members of a labor org unless authorized by a
bargaining agent of the employees in an appropriate
written resolution of a majority of all the members of a general
bargaining unit; all employees belonging to the
membership meeting duly called for the purpose
appropriate bargaining unit can participate.
DISQUALIFICATION OF CANDIDATE (o) Other than for mandatory activities under the Code, no special
assessments, atty.s fees, negotiation fees or any other
o If candidate is proven to be disqualified, it does not mean that extraordinary fees may be checked off from any amount due to an
the candidate with 2nd highest number of votes becomes the employee without an individual written authorization duly signed
elected officer (Manalad v. Trajano (1989)). by the Employeee. The authorization should specifically state the
amount, purpose and beneficiary of the deduction.
EXPULSION REMEDY
NOTE: Sec of Labor or his duly authorized representative may
o If herein union officers were guilty of the alleged acts imputed, inquire into financial activities of legitimate labor orgs UPON filing
BLR pursuant to Article 242 should have meted out the of complaint under oath and supported by written consent of at
appropriate penalty on them, i.e., to expel them from the Union, least 20% of total membership, Provided, such inquiry shall not be
conducted during (60)-day freedom period nor within the thirty (30)
Note: Article 222 (b) does not except a CBA, later placed under Filipino Pipe and Foundry Corp v. NLRC (1999)
compulsory arbitration, from the ambit of its prohibition. Hence,
individual written authorizations for check-offs are not dispensed The mother union, acting for and in behalf of its
with, even if the CBA provides so (Galvadores v Trajano (1986)). affiliate, had the status of an agent while the local
remained the basic unit of the association, free to
ENFORCEMENT AND REMEDIES PROCEDURE AND SANCTIONS serve the common interest of all its members, subject
only to restraints imposed by the constitution and by
the by-laws of the association. The same is true even if
the local is not a legitimate labor organization.
JURISDICTION
EFFECT OF AFFILIATION
ART. 241, last paragraph
Criminal and civil liabilities arising from violations of above rights
Adamson v. CIR (1984)
and conditions of membership shall continue to be under the
jurisdiction of ordinary courts.
Locals remain the basic units of association, free to
ART. 226 serve their own and the common interest of all.
o The BLR and the Labor Relations Division in the regional offices Inclusion of FFW in the registration is merely to stress
of the Department of Labor shall have original and exclusive that they are its affiliates at the time of registrations. It
authority to act does not mean that said local unions cannot stand on
o at their own initiative or their own. Affiliation does not mean they lost their
o upon request of either or both parties own legal personality.
o on all inter-union and intra-union conflicts, and all disputes,
grievances or problems arising from or affecting labor-
management relations in all workplaces
o Except those arising from the implementation or interpretation
of collective bargaining agreements which shall be the subject of
grievance procedure and/or voluntary arbitration.
Maintenance Already a Must If disaffiliates EXCEPTION: The rule is qualified in respect of labor unions holding a
shop member maintain from union, monopoly in the supply of labor, either in a given locality, or as
at the time membership, grounds for regards a particular employer with which it has a closed-shop
of hiring otherwise it termination, agreement.
shall be a after due Consequently, it is well settled that such unions are NOT
ground for process is entitled to arbitrarily excluded qualified applicants for membership,
termination observed and a closed-shop provision would not justify the employer in
discharging, or a union in insisting upon the discharge of, an
4.01 STATUTORY BASIS employee whom he union thus refuses to admit to membership,
without any reasonable ground thereof.
Art. 248(e)
UNFAIR LABOR PRACTICE OF EMPLOYERS To further increase the effectiveness of labor organizations, a
1. to discriminate in regard to wages, hours of work, and other closed-shop has been allowed. (Guijarno v. CIR, 1973)
terms and conditions of employment in order to encourage or
discourage membership in any labor organization.
2. Nothing in this code or in any other law shall stop the parties Del Monte Phils. v. Saldivar (2006)
from requiring membership in a recognized collective Admittedly, the enforcement of a closed-shop or union
bargaining agent as a condition for employment, EXCEPT those security provision in the CBA as a ground for termination finds no
employees who are already members of ANOTHER UNION at extension within any of the provisions under Title I, Book Six of the
the time of signing of the collective bargaining agreement. Labor Code. Yet jurisprudence has consistently recognized, thus: "It
is State policy to promote unionism to enable workers to negotiate
Art. 243 with management on an even playing field and with more
COVERAGE AND EMPLOYEES RIGHT TO SELF-ORGANIZATION. persuasiveness than if they were to individually and separately
3. All persons employed in commercial, industrial and agricultural bargain with the employer. For this reason, the law has allowed
enterprises and in religious, charitable, medical, or educational stipulations for 'union shop' and 'closed shop' as means of
institutions, whether operating for profit or not, shall have the encouraging workers to join and support the union of their choice in
right to self-organization and to form, join, or assist labor the protection of their rights and interests vis-a-vis the employer."
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 4.03 VALIDITY OF AGREEMENT AND EFFECT ON FREEDOM OF
mutual aid and protection. CHOICE
4.04 CONTRACT DRAFTING AND INTERPRETATION OF An employee is entitled to be protected not only from a
PROVISIONUNION SECURITY company which disregards his rights but also from his own Union
the leadership of which could yield to the temptation of swift and
arbitrary expulsion from membership and hence dismissal from his
job.
In order for an employer to be bound under a union security clause
in the CBA, to dismiss an employer for lack of or loss of union
membership, the stipulation must be so clear and unequivocal as to IMPLICATION: Even if there exists a union security clause, due
leave absolutely no room for doubt. There must be a provision that process is still necessary.
union members must be in good standing to keep their job.
(Rizal Labor Union v. Rizal Cement Co., 1955) Right to Due Process
A closed-shop agreement applies only to persons to be hired or to m. The books of accounts and other records of the financial
employees who are not yet members of any labor organization. It is activities of any labor org shall be open to inspection by any
inapplicable to those already in the service who are members of officer or member thereof during office hours;
another union. (Freeman Shirt Manufacturing Co., Inc. vs. CIR) n. No special assessment or other extraordinary fees may be
levied upon the members of a labor org:
4.07 IMPLEMENTATIONOBLIGATION & LIABILITIES 8. unless authorized by a written resolution
9. of a majority of all the members of a general
membership meeting
Carino v. NLRC (1990) 10. duly called for the purpose.
The secretary of the org shall record:
We believe that the Company should have given petitioner 11. the minutes of the meeting
Cario an opportunity to explain his side of the controversy with 12. including the list of all members present,
the Union. 13. the votes cast,
It is OUR considered view that respondent company is equally 14. the purpose of the special assessment or fees
liable for the payment of backwages for having acted in bad faith in and
effecting the dismissal of the individual petitioners. Bad faith on the 15. the recipient of such assessments or fees.
part of respondent company may be gleaned from the fact that the The record shall be attested to by the president. (No
petitioner workers were dismissed hastily and summarily. At best, it need to be under oath)
was guilty of a tortious act, for which it must assume solidary o. Other than for mandatory activities under the Code,
liability, since it apparently chose to summarily dismiss the workers no special assessments, atty.s fees, negotiation fees or any
at the union's instance secure in the union's contractual other extraordinary fees may be checked off from any amount
undertaking that the union would hold it "free from any liability" due to an employee
arising from such dismissal. 16. without an individual written authorization duly signed
We conclude that the Company had failed to accord to by the employee.
petitioner Cario the latter's right to procedural due process. The 17. The authorization should specifically state the amount,
right of an employee to be informed of the charges against him and purpose and beneficiary of the deduction
to reasonable opportunity to present his side in a controversy with
either the Company or his own Union, is not wiped away by a Union 1. A check-off is a process or device whereby the employer, on
Security Clause or a Union Shop Clause in a CBA. agreement with the Union, recognized as the proper
bargaining representative, OR on PRIOR authorization from its Exceptions: (National Brewery and Allied Industries Labor Union v.
employees, deduct union dues or agency fees from the latters San Miguel Corporation, 1963):
wages and remit them directly to the union. Its desirability in a 1) Any employee who is a member of a religious group which
labor organization is quite evident. (ABS-CBN Supervisors prohibits its members from joining labor unions on religious
Employees Union V. ABS-CBN) grounds, at the time such agreement takes effect
2. It is assured thereby of CONTINOUS FUNDING. As this Court 2) Employees who, at the time such agreement takes effect, are
has acknowledge, the system of check-off is primarily for the already members of a union other than the majority
benefit of the Union and only indirectly, for the individual 3) Employees excluded from the closed-shop by express terms of
employees. (ABS-CBN Supervisors Employees Union V. ABS- the agreement
CBN)
Note: Employees who cannot join a union in the first place (i.e.
Legal basis of check-off: statutes or in contracts. Confidential and Managerial) are obviously exempted as well.
SUMMARY OF NOTES
Definition:
Part IV
3. Prior CB history
APPROPRIATE BARGAINING UNIT
Rationale: if it worked well before, it will work well again
5.01 DEFINITION AND ROLE IN LAW now
Bargaining Unit: a group of employees sharing mutual interests Note: Prior collective bargaining history is not conclusive
within a given employer unit, comprised of all or less or determinative of what constitutes the appropriate
than all of the entire body of employees in the employer unit or any bargaining unit. [San Miguel Corp. v. Laguesma (1994)]
specific occupational or geographical grouping within such
employer unit [DO No. 40-03 series of 2003 Rule I (d)] 4. Employment status i.e. temporary, seasonal, & probationary
Employees
Appropriate Bargaining Unit: a group of employees of a given
employer comprised of all or less than all of the entire body of TEST of Grouping: COMMUNITY or MUTUALITY of INTERESTS
employees, which the collective interests of all the employees,
consistent with equity to the employer, indicate to be best suited to Rationale: Greater chance of success for the collective
serve reciprocal rights and duties of the parties [Belyca Corp. vs bargaining process - the basic test of an asserted bargaining
Calleja (1988)] units ACCEPTABILITY is won it is fundamentally the
combination w/c will best assure to all Employees the exercise
Elements of an appropriate bargaining unit: of their CB rights. This is related to the policy of the law in
ensuring the right to collective bargain.
1. COMPOSITION - All or less than all of the entire body of
employees Example of application: Casual employees were barred from
joining union of the permanent and regular employees.
2. EQUITY - Of employees: A.k.a = Collective interest of
employees consistent with the equity of the employer. DISINI:The law is looking only for what is PROPER OR APPROPRIATE.
The law is NOT looking for the best!
3. PURPOSE - to serve the reciprocal rights & duties of the parties
under the CB provisions of the law Can you have a permanent bargaining unit?
What is the function of an appropriate bargaining unit? No. An appropriate bargaining unit depends on the factors that are
influenced by the market place. The bargaining unit is designed to
1. To act as a SOVEREIGN in relation to the CE and CBA maintain the mutuality of interest among the employees in such
unit.
2. It is an ELECTORAL DISTRICT. It marks the boundaries of those Reason to dissolve, change or expand a certain bargaining
who may participate in a certification election. unit: when THE INTEREST BETWEEN GROUPS HAS CHANGED
OVER TIME.
3. It is an Economic Unit.
GEOGRAPHY LOCATION
4. To select or designate a labor organization to represent them in
collective bargaining [Art. 255] The primary element in determining whether a given group of
employees constitute a proper bargaining unit is still whether it will,
18. General Rule: the labor organization designated or selected by without inequity to the employer, best serve all employees in the
the majority of the employees in an appropriate bargaining exercise of their bargaining rights. Geography and location only play
unit shall be the exclusive representative of the employees in a significant role if:
such unit for the purpose of collective bargaining. the separation between the camps and the different kinds of
work in each all militate in favor of the system of separate
19. Exceptions: bargaining units
1. an individual EE or group of Employees shall have the when the problems and interests of the workers are peculiar in
right at any time to present grievances to their ER each camp or department
the system of having one collective bargaining unit in each
2. Any provision of law to the contrary notwithstanding and
camp has operated satisfactorily in the past
subject to rules and regulations as the SOLE may
[Benguet Consolidated Inc. and Balatok Mining Co. v. Bobok
promulgate, workers shall have the right to participate in
Lumberjack Assn. (1958)]
policy and decision-making processes of the
establishment where they are employed in so far as said
CORPORATE ENTITIES
processes will directly affect their RIGHTS, BENEFITS and
WELFARE.
Doctrine: It is grave abuse of discretion to treat 2 companies as a
Provision for LABOR MANAGEMENT COUNCILS
single bargaining unit when these 2 companies are indubitably
by workers and ERs representatives of
distinct entities with separate juridical personalities.
workers must be elected by at least a majority
In Umali vs CA, legal corporate entity is disregarded only if it is
of all employees in said establishment
sought to hold the officers and stockholders directly liable for
a corporate debt or obligation.
5.02 DETERMINATION OF APPROPRIATE [Indophil Textile Mills Workers Union v. Calica (1992)]
BARGAINING UNIT
Principles in determining whether to establish separate
1. FACTORS bargaining units:
1. Will of the Employees 2. The fact that there are as many bargaining units as there are
companies in a conglomeration of companies is a positive
2. Affinity & unity of Employees interest, such as substantial proof that a corporation is endowed with a legal personality
similarity of works and duties or similarity of compensation &
working conditions
DISTINCTLY ITS OWN, independent and separate from other If you have one BIG bargaining unit, most probably you are
corporations. [Diatagon Labor Federation v. Ople (1980)] grouping together DIFFERENT SKILLED workers.
6. Determine who exercises supervision and control. 3. SIZE OF UNIT AND EFFECT ON RIGHT TO SELF-ORGANIZATION
a. whether different management terms
b. enforcement of administrative and operational rules Filoil Refinery Corp. v Filoil Supervisory and
c. maintenance of financial statements and auditing Confidential Employees Union (1972)
d. cross-linking of command, control and
communication systems [Phil. Scouts Veterans v. Since the confidential employees are very few in number and are by
Torres (1993)] practice and tradition identified with the supervisors in their role as
representatives of management vis--vis the rank and file
7. If, considering the spin-offs, the companies would employees, such identity of interest has allowed their inclusion in
consequently have their respective and distinctive concerns in the bargaining of supervisors for purposes of collective bargaining
terms of nature of work, wages, hours of work and other in turn as employees in relation to the company as their employer.
conditions of employment. This identity of interest logically calls for their inclusion in the same
bargaining unit and at the
8. The nature of their products and scales of business may same time fulfills the laws objective of insuring to them the full
require different skills, volumes of work, and working benefit of their right to self organization and to collective
conditions which must necessarily be commensurate by bargaining, which could hardly be accomplished if the respondent
different compensation packages. [San Miguel ..Union v. associations membership were to be broken up into five separate
Confesor (1996)] ineffective tiny units. Creating fragmentary units would not serve
the interest of industrial peace. The breaking up of bargaining units
2. UNIT SEVERANCE AND THE GLOBE into tiny units will greatly impair their organizational value. Since
DOCTRINE the confidential employees are very few and are identified with the
supervisors in their role as representatives of management vis-a-vis
Concept: the practice of the courts to hold a series of elections not the rank and file employees, such identity of interest
for the purpose of granting the right of representation to the group has allowed their inclusion in the bargaining unit of supervisors-
garnering the majority vote but to let employees select on several managers for purposes of collective bargaining. Industrial court
units to represent them [Kapisanan ng mga Manggagawa sa enjoys a wide discretion in determining the procedure necessary to
Manila Road Co. v. Yard Crew Union (1960)] insure the fair and free choice of bargaining representations by
employees. Action in deciding upon an appropriate unit for
Rationale: highly skilled workers have to separate to increase their collective bargaining purposes is discretionary. Its judgment is
market value entitled to finality, unless its action is arbitrary or capricious.
It is best explained in the context of a market place and the demand Supervisors can be an appropriate bargaining unit. [Dunlop
of employment on such market place. The GLOBE DOCTRINE usually Slazenger v. NLRC (1998)]
applies to employees with rare skills or highly technical ones.
4. EFFECT OF PRIOR AGREEMENT
Example: Case of Pilots and Stewardess.
Rule: Prior agreement as to the inclusion or exclusion of workers in
If ,originally, pilots and stewardesses belong to ONE bargaining unit a bargaining unit or prohibition from forming their own union
(unit A) for the purpose of collective bargaining, with the use of the agreed upon by the corporation with the previous bargaining
GLOBE DOCTRINE a plebiscite can be held to determine if the pilot representatives can never bind subsequent federations. [General
employees would want to Rubber & Footwear Corp. v BLR, (1987)]
form a separate bargaining unit (unit B).
Rationale: It is a curtailment of the right to self-organization. During
Illustration: the freedom period, the parties may not only renew the existing
collective bargaining agreement but may also propose and discuss
Unit A (original bargaining unit): 100 Pilots + 200 Stewardesses = modifications or amendments thereto. [DLSU v. DLSUEA (2000)]
300 employees
Unit B (proposed new unit): Pilots = 100 employees. 5.03 DETERMINING AGENCY
Those in unit B (100 pilots) will vote in a plebiscite. Their choices will General Rule: The Bureau shall not entertain any petition for
be certification election or any other action which may disturb the
administration of duly registered existing collective bargaining
(1) To vote for Unit A: this would mean that they do not wish to agreements affecting the parties [Art. 232 sec. 15 of RA 6715]
separate from the original bargaining unit.
(2) To vote for Unit B: This would mean that they would want to Exceptions: Art. 253, 253-A and 256 of this Code (60 day freedom
form their OWN bargaining unit, composed of pilots only. period)
(3) Neither: They do not want the choices
AGENCY AND FINALITY ORDER
Exceptions:
1. an individual EE or group of Employees shall have the right at
any time to present grievances to their ER
So the issue now is which should prevail? Azucena in his the same.
book recognizes Voluntary Recognition as valid and
welcomes it as a new development to the law. I. Art. 256: Organized Establishments
Neither law, administrative rule nor jurisprudence a. Contract bar rule (Art. 232)
requires that only employees affiliated with any labor b. Deadlock-bar rule
organization may take part in a certification election. On c. One year bar rule
the contrary, the plainly discernible intendment of the
law is to grant the right to vote to all bona fide Note: among all the bar rules, only the contract bar is actually
employees in the bargaining unit, whether they are in the Labor Code, the other two are in the implementing rules.
members of a labor organization or not. [Reyes v.
Trajano (1992)] C. Suspension of CE: Prejudicial question rule
A. The different entry points to a certification election a. Verified petition, supported by at least 25% of all the
employees in the bargaining unit, questioning the
Note: The mechanics of the three entry-points are similar and majority status of the incumbent bargaining agent
(c) the approximate number of employees in the bargaining b. Filed before the DOLE withing the 60-day period before
unit, accompanied by the names of those who support the voluntary the expiration of the collective bargaining agreement
recognition comprising at least a majority of the members of the
bargaining unit; and Note: In relation to the one-year bar rule, a duly certified bargaining
(d) a statement that the labor union is the only legitimate agent is allowed one year to negotiate for the signing of a CBA, that
labor organization operating within the bargaining unit. is why no CE can be filed at this time.
All accompanying documents of the notice for voluntary Requisite for valid election: at least a majority of all eligible voters
recognition shall be certified under oath by the employer representative in the unit must have cast their votes
and president of the recognized labor union.
Section 3. Action on the Notice. - Where the notice of Organized Establishment v. Unorganized Establishment
voluntary recognition is sufficient in form, number and substance and (The distinctions are important because the requirements are
where there is no other registered labor union operating within the different.)
bargaining unit concerned, the Regional Office, through the Labor
Relations Division shall, within ten (10) days from receipt of the notice,
record the fact of voluntary recognition in its roster of legitimate labor
Art. 256: Art. 257:
unions and notify the labor union concerned.
Where the notice of voluntary recognition is insufficient in ORGANIZED UNORGANIZED
form, number and substance, the Regional Office shall, within the same Bargaining Existing, has one None
period, notify the labor union of its findings and advise it to comply with agent
the necessary requirements. Where neither the employer nor the labor Petition filed Has to be a No need to be
union failed to complete the requirements for voluntary recognition VERIFIED petition Verified
under Section 2 of this Rule within thirty (30) days from receipt of the Freedom Period No petition for Not applicable.
advisory, the Regional Office shall return the notice for voluntary Certification
recognition together with all its accompanying documents without election EXCEPT No freedom period.
prejudice to its re-submission. within 60 days Can file petition
Section 4. Effect of recording of fact of voluntary before the anytime.
recognition. - From the time of recording of voluntary recognition, the expiration of the
recognized labor union shall enjoy the rights, privileges and obligations
collective
of an existing bargaining agent of all the employees in the bargaining
bargaining
unit. Entry of voluntary recognition shall bar the filing of a petition for
agreement (See
certification election by any labor organization for a period of one (1)
year from the date of entry of voluntary recognition. Upon expiration of Art. 253 & 253-A)
this one-year period, any legitimate labor organization may file a
petition for certification election in the same bargaining unit Take note how SC
represented by the voluntarily recognized union, unless a collective interpreted the
bargaining agreement between the employer and voluntarily recognized term WITHIN.
labor union was executed and registered with the Regional Office in
accordance with Rule XVII of these Rules. What is the
rationale of
freedom period in substantial support requirement, the BLR may exercise its discretion
Organized in determining whether or not a certification election must be
establishments, conducted. [Scout Albano Memorial College v. Noriel (1978)]
why is there none in
unorganized Does a RIVAL union have authority to VERIFY the signatures in the
establishments? substantial support requirement?
It has something to No a rival union may not. Only the department of labor has
do with industrial authority to verify. (Todays Knitting Free Workers Union v.
peace Noriel,1977)
Substantial support Must be duly NO substantial
rule supported by 25% support rule. What is the effect on a petition of certification election of the
of ALL THE withdrawal from union membership filed by that
MEMBERS OF THE WHY? union?
APPROPRIATE Intention of law is
BARGAINING to bring in the Once the required percentage requirement has been reached, the
UNIT. union, to employees withdrawal from union membership taking place after
implement policy the filing of the petition for certification election will not affect the
Percentage base: behind Art. 211a. petition. On the contrary the presumption arises that the
all members of an withdrawal was not free but was procured through duress,
appropriate coercion, or for a valuable consideration. (Oriental Tin Can Labor
bargaining unit. Union v. Secretary of Labor and Employment, 1998)
Exceptions: Art. 253, 253-A and 256 of this Code (60 day freedom Principles:
period)
1. Employer is a TOTAL STRANGER in the process of Certification
The purpose of the prohibition against the filing of a Election. Employer has NO STANDING to file a MOTION TO
petition for certification election outside the so-called freedom DISMISS (Phil. Telephone Telegraph v. SOL)
period is to ensure industrial peace between the employer and
its employees during the existence of the CBA. [Republic 2. A companys interference in the CE creates a suspicion that it
Planters Bank Unionv. Laguesma (1996)] intends to establish a company union (Oriental Tin Can Labor
Union v. Secretary of Labor).
The premature renewal of a CBA cannot bar the holding
of a certification election by virtue of a bona fide petition filed CONDUCTING AGENCY
within the freedom period if the clear intention was to
frustrate the constitutional right of the employees to self- Bureau of Labor Relations [Art. 226 & 258]
organization. [Associated Labor Union v. Calleja (1989)]
1. All certification cases shall be decided within 20 working days
DISCUSSION ON THE SUBSTANTIAL SUPPORT RULE IN ORGANIZED
ESTABLISHMENTS 2. The BLR shall conduct the certification election within 20 days
2. Employees who have been improperly laid off but who have a
present, unabandoned right to or expectation of Conduct of certification election
reemployment, are eligible to vote in certification elections. If
the dismissal is under question, employees concerned could
still qualify to vote in the elections. [Philippine Fruits v Torres Filing of protest at the close of the certification election
(211 SCRA 95)]
The election shall be set on a regular business day. [Section 2, Rule 1. THE CONTRACT BAR RULE (Art. 232)
VI,Book VI of the Rules to Implement the Labor Code]
GENERAL RULE: The bureau shall NOT entertain any petition for
PROTEST certification election.
Requirements in order that a protest filed EXCEPT: (Freedom period)Art. 253, 253-A, 256: Within 60 days
would prosper [Philippine Fruits and Vegetables Industries v. before expiration of the five year term of the CBA.
Torres (1992)]:
The contract bar rule can be validly invoked only if the
1. The protest must be filed with the representation officer and existing CBA contains substantially those materials that should be
made of record in the minutes of the proceedings before the included in the CBA at the time of the filing of the petition for
close of election proceedings, and certification election. [Buklod ng Saulog Transit v. Casalla (1956)]
2. The protest must be formalized before the Med-Arbiter within What if a CBA is not registered but validly entered into by the
five (5) days after the close of the election proceedings. parties, will it bar a petition for CE?
Protests not so raised are deemed waived. [Jisscor Disini: It will, applying by analogy Trade Union of Philippines v.
Independent Union v Torres (1993)] Laguesma which says that none compliance with a procedural
requirement (in this case it was a late filing of the CBA) should not
Appeal from Certification Election Orders [Art. 259] adversely affect the substantive validity of the CBA.
Ground: the rules and regulations or parts thereof established by What is the effect of an expired CBA on the contract bar rule?
the Secretary of Labor for the conduct of election have been No petition for CE may be filed after the lapse of the 60 day
violated freedom period. The old CBA is extended until a new one is filed.
The purpose is to ensure stability in the relationship of the workers
Period for decision: 15 calendar days and the company by preventing frequent modifications of any CBA
earlier entered into by them in good faith and for the stipulated
Referral of the appeal to the Trade Union Congress of the original period.
Philippines (TUCP), a federation of labor unions is glaringly illegal
and void. The Labor Code never intended that the Director of Labor What if the CBA was suspended?
Relations should abdicate, delegate and relinquish his arbitrational Under Art. 253-A the representation limit for the exclusive
prerogatives in favor of a private person or entity or to a federation bargaining agent applies only when there is an extant CBA in full
of trade unions. Article 226, 259, 260 are mandatory and should be force and effect. In the instant case, the parties agreed to suspend
strictly adhered to. They are part and parcel of the adequate the CBA and put in abeyance the limit on the representation period.
administrative machinery established by the Labor Code for the (Rivera v. Espiritu GR no. 135547 January 23, 2002)
expeditious settlement of labor disputes. [Ilaw at Buklod ng
Manggagawa v. Dir. Of Labor Relations. 91 SCRA 482] 2. DEADLOCK-BAR RULE
Requisites:
ANNULMENT
1. Parties must have negotiated in good faith.
General allegation of duress is not sufficient to invalidate
a certification election; it must be shown by competent and credible 2. Deadlock must have been submitted to voluntary
proof. [United Employees Union of Gelmart Inv. v. Noriel (1975)] arbitration or a valid subject of a valid notice of strike or
lock-out.
Irregularities that may invalidate certification election:
3. ONE-YEAR BAR RULE
c. inability of workers to vote
d. failure to safeguard secrecy of the ballot
From time of valid certification election. Not from time of
e. intimidation of election supervisors and neglect in
final resolution of appeal.
performance of duties
[Confederation of Citizens Labor Union v. Noriel (1982)]
DATE OF ELECTION:
1. Date election is certified
Part VI
The Labor Code authorizes parties to provide for their own
COLLECTIVE BARGAINING procedures in Collective Bargaining but it must be more
EXPEDITIOUS that that provided in Art. 250.
o If they are unable to agree they must follow
IMPLEMENTING PROVISIONS procedure in the labor code (Art. 250).
1. PROCEDURE Art. 250 IMPLICATION: Provisions of this code are only supplementary
Art. 251 not mandatory with regards to the process of collective bargaining.
Cf. Art. 233 Because it is the policy of the state to promote the primacy of FREE
collective bargaining. (211a).
2. DUTY TO BARGAIN Art. 252
COLLECTIVELY Art. 253 2. CODE PROCEDURE
1. POLICY DECLARATION
Reply by other party within 10 calendar days from receipt of notice
1987 Constitution. Art. XIII, Sec. 3
Should differences arise, request for conference: within 10 days
The State shall guarantee the rights of workers to from date of request
collective bargaining and negotiations.
If dispute not settled, Board shall intervene on request or motu
The State shall promote the principle of shared proprio & call parties to conciliation meetings
responsibilities 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. NOTE: These procedures are DIRECTORY in nature and not
mandatory, failure to comply with the prescribed time periods will
Labor Code, Art 211 not amount to an unfair labor practice.
(a) To promote and emphasize the primacy of FREE COLLECTIVE 3. CONCILIATION PROCEDURE
BARGAINING and negotiations, including voluntary arbitration,
mediation and conciliation, as modes of setting labor or industrial Art. 250 (c) If the dispute is not settled, the Board shall intervene
disputes; upon request of either or both parties or at its own initiative and
immediately call the parties to conciliation meetings.
Kiok Loy v. NLRC (1986)
During conciliation proceedings:
Collective bargaining which is defined as negotiations towards a
collective agreement, is one of the democratic frameworks under 1. The Board shall have the power to issue subpoenas requiring
the New Labor Code, designed to stabilize the relation between the attendance of the parties to such meetings.
labor and management and to create a climate of sound and stable
industrial peace. It is a mutual responsibility of the employer and 2. It shall be the duty of the parties to participate fully and
the Union and is characterized as a legal obligation. So much so that promptly in the conciliation meetings the Board may call;
Article 249, par. (g) of the Labor
Code makes it an unfair labor practice for an employer to refuse "to 3. The parties are prohibited from doing any act which may
meet and convene promptly and expeditiously in good faith for the disrupt or impede the early settlement of the disputes; and
purpose of negotiating an agreement with respect to wages, hours
of work, and all other terms and conditions of employment 4. The Board shall exert all efforts to settle disputes amicably and
including proposals for adjusting any grievance or question arising encourage the parties to submit their case to a voluntary
under such an agreement and executing a contract incorporating arbitrator.
such agreement, if requested by either party. "
Privileged Communication (Art. 233)
2. NATURE AND PURPOSE 5. Information and statements made at conciliation proceedings
shall be treated as privileged communication and shall not be
The institution of collective bargaining is a prime manifestation of used as evidence in the Commission.
industrial democracy at work. The two parties to the relationship,
labor and management, make their own rules by coming to terms. 6. Conciliators and similar officials shall not testify in any court or
That is to govern themselves in matters that really count. [United body regarding any matters taken up at conciliation
Employees Union of Gelmart Industries v. Noriel (1975)] proceedings conducted by them.
The right to free collective bargaining includes the right to suspend Meaning of duty to bargain collectively:
it. [Rivera v. Espiritu (2000)]
7.02 BARGAINING PROCEDURE A. the performance of a mutual obligation to meet and convene
promptly and expeditiously in good faith for the purpose of
1. PRIVATE PROCEDURE negotiating an agreement with respect to wages, hours of
work and all other terms and conditions of employment
Art. 251 Duty to bargain collectively in the absence of collective including proposals for adjusting any grievances or questions
bargaining agreements. In the ABSCENCE of an agreement or arising under such agreement and executing a contract
other VOLUNTARY ARRANGEMENT providing for a MORE incorporating such agreements if requested by either party,
EXPEDITIOUS manner of collective bargaining, it shall be the duty of but such duty does not compel any party to agree to a
the employer and the representatives of the employees to bargain proposal or to make any concession. [Art. 252]
collectively in accordance with the provisions of this Code.
1. POSITIVE STATEMENT obligation is an unfair labor practice. [Republic Savings Bank v. CIR
(1967)]
NATURE of duty to bargain: Mutual Obligation
DEADLOCK
HOW: to meet and convene promptly and expeditiously in good
faith. Collective Bargaining Deadlock: the situation between the labor
and the management of the company where there is failure in the
PURPOSE: for the purpose of negotiating an agreement(CBA) collective bargaining negotiations resulting in a stalemate [San
Miguel Corporation v. NLRC (1999)]
NEGOTIABLE ISSUES: with respect to wages, hours of work and all
other terms and conditions of employment including proposals for Ground for strike or lockout [Rule XXII, Section I, of the Rules
adjusting any grievances or questions arising under such agreement and Regulations Implementing Book V the Labor Code]
but such duty does not compel any party to agree to a proposal The Minutes reflects the proceedings and discussions undertaken in
or to make any concession. the process of bargaining for worker benefits in the same way that
the minutes of court proceedings show what transpired therein. At
3. EXECUTION OF A CONTRACT: Art. 252 also states that it is part of the negotiations, it is but natural for both management and labor to
the duty to bargain to execute a contract incorporating such adopt positions or make demands and offer proposals and counter-
agreements if requested by either party. proposals. However, nothing is considered final until the parties
have reached an agreement. Where a proposal raised by a
B. When there is a collective bargaining agreement, the duty to contracting party does not find print in the CBA, it is not a part
bargain collectively shall also mean that neither party shall thereof and the proponent has no claim whatsoever to its
terminate or modify such agreement during its lifetime. [Art. implementation.[Samahang Manggagawa sa Top Form v. NLRC
253] (1998)]
While it is a mutual obligation, the employer is not under any "The question as to what are mandatory and what are merely
legal duty to initiate contract negotiation. permissive subjects of collective bargaining is of significance on the
The mechanics of collective bargaining is set in motion when the right of a party to insist on his position to the point of stalemate. A
following are present: party may refuse to enter into a collective bargaining contract
unless it includes a desired provision as to a matter which is a
(1) possession of the status of majority representation of the mandatory subject of collective bargaining; but a refusal to contract
employees' representative in accordance with any of the means of unless the agreement covers a matter which is not a mandatory
selection or designation provided for by the Labor Code, subject is in substance a refusal to bargain about matters which are
mandatory subjects of collective bargaining; and it is no answer to
(2) proof of majority representation and the charge of refusal to bargain in good faith that the insistence on
the disputed clause was not the sole cause of the failure to agree or
(3) a demand to bargain under Article 251, par. (a) of the New Labor that agreement was not reached with respect to other disputed
Code. [Kiok Loy v NLRC (1986)] clauses." [Samahang Manggagawa sa Top Form v. NLRC (1998)]
Collective bargaining does not end with the execution of an The consequences are different for the refusal to bargain.
agreement. It is a continuous process. The duty to bargain imposes
on the parties during the term of their agreement the If mandatory issue, refusal to bargain could lead to:
mutual obligation "to meet and confer promptly and expeditiously - A case of Unfair Labor Practice
and in good faith . . . for the purpose of adjusting any grievances or - May be a valid ground for a strike or lockout
question arising under such agreement" and a violation of this
If permissive issue, refusal to bargain will NOT REGISTRATION PERIOD, REQUIREMENTS AND ACTIONS
produce a case for ULP, NOR will it allow that
economic weapons be used. Cannot strike or lock- Art. 231 - Registry of unions and file of CBAs
out.
Within 30 days from execution of CBA, parties must submit copies
Guidelines: to Bureau or DOLE Regional Office for registration, accompanied by
verified proofs of posting in workplace and ratification
1. The question of minimum wage is not negotiable.Phil
American Mgt Co. v. Phil. American Mgt Employees
(1973) Bureau or Regional Offices to act on application within 5 days from
receipt of CBA
2. Retirement plan is negotiable. [Nestle Phil. V NLRC
(1991)]
Regional Offices to furnish Bureau copy within 5 days from
7.05 THE COLLECTIVE BARGAINING AGREEMENT submission
Effect Sub-standard Contract: entering into CBA which provides In a long line of cases, this Court has held that when a collective
terms and conditions of employment below minimum standards bargaining contract is entered into by the union representing the
established by law is a ground for cancellation of union registration employees and the employer, even the nonmember employees are
[Art. 239 (f)] entitled to the benefits of the contract. To accord its benefits only
to members of the union without any valid reason would constitute
Duration and Re-negotiation undue discrimination against nonmembers. [New Pacific Timber
and Supply v. NLRC (2000)]
Art. 253-A Terms of a collective bargaining agreement.
CONTRACT ADMINISTRATION AND ENFORCEMENT
POLITICAL ASPECT: Any Collective Bargaining Agreement that the
parties may enter into shall, insofar as the representation aspect is Nature of the Contract
concerned, be for a term of five (5) years.
No petition questioning the majority status of the In Mactan Workers Union vs. Aboitiz, we held that the terms
incumbent bargaining agent shall be entertained and conditions of a collective bargaining contract constitute the law
and no certification election shall be conducted by between the parties. Those who are entitled to its benefits can
the DOLE outside of the sixty-day period invoke its provisions. In the event that an obligation therein
immediately before the date of the expiry of such imposed is not fulfilled, the aggrieved party has the right to go to
five year term of the Collective Bargaining court for redress. [Babcock-Hitachi (Phils.) V. Babcock-Hitachi
Agreement. (2005)]
ECONOMIC ASPECT: All other provisions of the CBA shall be A collective bargaining agreement, just like any other contract,
renegotiated not later than three (3) years after its execution. is respected as the law between the contracting parties and
Any agreement on such other provisions of the CBA compliance therewith in good faith is mandated. Similarly, the rules
entered into within six months from the expiry of embodied in the Civil Code on the proper interpretation of
the term of such other provisions as fixed in such contracts can very well govern. The intention of the parties is
CBA, shall retroact to the day immediately following primodial; if the terms of the contract are clear, the literal meaning
such date. of the stipulations shall control, but if the words appear to be
If any such agreement is entered into beyond six contrary to the evident intention of the parties, the latter shall
months, the parties shall agree on the duration of prevail over the former. [Kimberly Clark Phils. V. Lorredo (1993)]
the retroactivity thereof.
In case of a deadlock in the renegotiation of the GRIEVANCE PROCEDURE; Dispute issues and Individual Grievance
CBA, the parties may exercise their rights under this
Code. Art. 260 Grievance Machinery and Voluntary Arbitration.
What are subject of the grievance procedure for adjustment and 1. provisions that will ensure the mutual observance of its terms
resolution are grievances arising from the interpretation or and conditions
implementation of the collective bargaining agreement. [Navarro III 2. a machinery for the adjustment and resolution of grievances
v. Damasco (1995)] arising from:
a. the interpretation or implementation of their CBA
and
b. those arising from the interpretation or the existing agreement until a new agreement is reached. In this
enforcement of company personnel policies. manner, the law prevents the existence of a gap in the relationship
between the collective bargaining parties. Another legal principle
Procedure: that should apply is that in the absence of an agreement between
the parties, then, an arbitrated CBA takes on the nature of any
1. parties to a CBA shall: judicial or quasi-judicial award; it operates and may be executed
a. name and designate in advance a Voluntary only respectively unless there are legal justifications for its
Arbitrator or panel of Voluntary Arbitrators, OR retroactive application. [Manila Electric Co. V. Quisumbing (1999)]
b. include in the agreement a procedure for the
selection of such Voluntary Arbitrator or panel of Art. 253-A refers to CBAs entered into by the parties as a
Voluntary Arbitrators preferably from the listing of result of their mutual agreement. The CBA in this case, on the other
qualified Voluntary Arbitrators duly accredited by hand, is part of an arbitral award. As such, it may be made
the Board. retroactive to the date of expiration of the previous agreement.
In case the parties fail to select a Voluntary Arbitrator or Therefore, in the absence of a specific provision of law prohibiting
panel of Voluntary Arbitrators, the Board shall designate the retroactivity of the effectivity of arbitral awards issued by the
Voluntary Arbitrator or panel of Voluntary Arbitrators, as may Secretary of Labor pursuant to Article 263(g) of the Labor Code,
be necessary, pursuant to the selection procedure agreed such as herein involved, public respondent is deemed vested with
upon in the CBA, which shall act with the same force and plenary and discretionary powers to determine the effectivity
effect as if the Voluntary Arbitrator or panel of Arbitrators has thereof. [Manila Central Line Corp. v. Manila Central Line Free
been selected by the parties as described above. Workers Union (1998)]
2. All grievances submitted to the grievance machinery which are CBA and 3rd Party Applicability Rule
not settled within 7 calendar days from the date of its submission
shall automatically be referred to voluntary arbitration prescribed Labor contracts such as employment contracts and CBAs are
in the CBA. not enforceable against a transferee of an enterprise, labor
contracts being in personam, thus binding only between the parties.
3. However, an individual employee or group of employees shall [Sundowner Devt. Corp. v Drilon (1989)]
have the right at any time to present grievances to their
employer. [Art. 255] Indeed, an innocent transferee of a business establishment
has no liability to the employees of the transferor to continue
Doctrines: employing them. Nor is the transferee liable for past unfair labor
practices of the previous owner, except, when the liability therefor
1. It should be remembered that a grievance procedure is part of is assumed by the new employer under the contract of sale, or
the continuous process of collective bargaining It is intended when liability arises because of the new owner's participation in
to promote a friendly dialogue between labor and thwarting or defeating the rights of the employees. The most that
management as a means of maintaining industrial the transferee may do, for reasons of public policy and social
peace.[Master Iron Labor Union v. NLRC (1993)] justice, is to give preference to the qualified separated employees
in the filling of vacancies in the facilities of the purchaser.
2. No particular setup for a grievance machinery is mandated by [Manlimos v. NLRC (1995)]
law. Rather, Article 260 of the Labor Code, as incorporated by
RA 6715, provides for only a single grievance machinery in the Disaffiliation: Doctrine of Substitution
company to settle problems arising from "interpretation or
implementation of their collective bargaining agreement and Where there occurs a shift in employees union allegiance
those arising from the interpretation or enforcement of after the execution of a collective bargaining contract with their
company personnel policies.". [Caltex Refinery Employees employer, the employees can change their agent the labor union,
Association v. Brilliantes (1997)] but the CBA continues to exist. [Benguet Consolidated, Inc. v BCI
Employees and Workers UnionPAFLU (1968)]
Contract Duration And Renewals
WON the terms of an existing CBA particularly as to the economic
Art. 253-A Terms of a collective bargaining agreement. provisions, can be extended beyond the three year period
prescribed by law in the absence of a new agreement?
Art. 253-A serves as the guide in determining when the CBA at
bar is to take effect. It provides that the representation aspect of YES. Until a new CBA has been executed by and between the
the CBA is to be for a term of 5 years, while . . . [A]ll other parties, they are duty bound to keep the status quo and to continue
provisions of the Collective Bargaining Agreement shall be re- in full force and effect the terms and conditions of the existing
negotiated not later than 3 years after its execution. Any agreement agreements. The law does not provide for an exception nor
on such other provision of the Collective Bargaining Agreement qualification as to which of the economic provisions of the existing
entered into within 6 months from the date of expiry of the term of agreements are to retain force and effect, therefore it encompasses
such other provisions as fixed in such Collective Bargaining all provisions. The New CBA is given PROSPECTIVE effect generally
Agreement shall retroact to the day immediately following such since 253 and 253-A provides for an automatic renewal clause in
date. If such agreement is entered into beyond 6 months, the existing CBAs.
parties shall agree on the duration of the effectivity thereof. . . . .
- Under these terms, it is clear that the 5- year term requirement is PURPOSE: To avoid creating a gap during which no
specific to the representation aspect. What the law additionally agreement would govern. Better for industrial peace if
requires is that a CBA must be re-negotiated within 3 years "after its effectivity of the CBA is longer.
execution." It is in this re-negotiation that gives rise to the present
CBA deadlock. [New Pacific Timber and Supply Co. Inc v. NLRC (2000)]
- If no agreement is reached within 6 months from the expiry date
of the 3 years that follow the CBA execution, the law expressly gives
the parties not anybody else the discretion to fix the
effectivity of the agreement.
- Significantly, the law does not specifically cover the situation
where 6 months have elapsed but no agreement has been reached
with respect to effectivity. In this eventuality, we hold that any
provision of law should then apply for the law abhors a vacuum.
- One such provision is the principle of hold over, i.e., that in the
absence of a new CBA, the parties must maintain the status quo and
must continue in full force and effect the terms and conditions of
The employee is not only protected from the employer interfere not included in Art. 249 because any act of a
but also from labor organization labor organization amounts to interference to a right to
self-organization
Employer is also protected from ULP committed by a
labor organization Art. 248 (a) and Art. 249(a) are the general grant of protection. All
other cases of ULP enumerated under the said provisions are
The public is also protected because it has an interest in derivatives of Art. 248(a) and Art. 249 (a)
continuing industrial peace
Philcom Employees Union v. Phil. Global (2006) 8.02 UNFAIR LABOR PRACTICE: EMPLOYER AND LABOR
Unfair labor practice refers to acts that violate the workers right ORGANIZATION ACTS VIOLATING RIGHT OF SELF-ORGANZATION
to organize. The prohibited acts are related to the workers right to
self-organization and to the observance of a CBA. Without that ULP AND MANAGEMENT FUNCTIONS
element, the acts, no matter how unfair, are not unfair labor
practices. The only exception is Art. 248 (f) [i.e. to dismiss, discharge Royal InterOcean Lines v. CIR (1960)
or otherwise prejudice or discriminate against an employee for The protection of workers' right to self-organization does not
having given or being about to give testimony under this Code] interfere with employer's freedom to enforce such rules and orders
as are necessary to [the] proper conduct of his business, so long as
2. REQUISITE RELATIONSHIP employer's supervision is not for the purpose of intimidating or
coercing his employees with respect to their self-organization and
American President Lines v. Clave (1982) representation.
An unfair labor practice may be committed only within the It is the function of the court to see to it that the rights of self-
context of an employer-employee relationship organization and collective bargaining guaranteed by the Act are
amply secured to the employee, but in its effort to prevent unfair
3. CONSTRUCTION labor practices, the court must be mindful of the welfare of the
honest employer.
HSBC Employee Union V. NLRC (1997) Despite the employees' right to self-organization, the
The Labor Code does not undertake the impossible task of employer therefore still retains his inherent right to discipline his
specifying in precise and unmistakable language each incident employees, his normal prerogative to hire or dismiss them. The
which constitutes an unfair labor practice. Rather, it leaves to the prohibition is directed only against the use of the right to employ or
court the work of applying the law's general prohibitory language in discharge as an instrument of discrimination, interference or
light of infinite combinations of events which may be charged as oppression because of one's labor or union activities.
violative of its terms.
Great Pacific Life Employees Union v. Great Pacific Life Assurance This particular provision signifies what is known as a yellow dog
Corp. (1999) contract.
While an act or decision of an employer may be unfair, A typical yellow dog contract embodies the following stipulations:
certainly not every unfair act or decision constitutes unfair labor
practice (ULP) as defined and enumerated under Art. 248 of the a. a representation by the employee that he is not a
Labor Code. member of a labor organization
All the prohibited acts constituting unfair labor practice in
essence relate to the workers' right to self-organization. Thus, an b. a promise by the employee that he will not join a union
employer may be held liable under this provision if his conduct
affects in whatever manner the right of an employee to self- c. a promise by the employee that upon joining a labor
organize. The decision of employer [GREPALIFE] to consider the top organization, he will quit his employment
officers of union as unfit for reinstatement is not essentially
discriminatory and constitutive of an unlawful labor practice of 3. CONTRACTING OUT TO DISCOURAGE UNIONISM
employers under the above-cited provision. Discriminating in the
context of the Code involves either encouraging membership in any
labor organization or is made on account of the employee's having Art. 248 (c), LC
given or being about to give testimony under the Labor Code.
To contract out services or functions being
1. INTERFERENCE, RESTRAINT AND COERCION performed by union members when such will
interfere with, restrain or coerce employees in the
exercise of their rights to self-organization;
Art. 248 (a), LC
It shall be unlawful for an employer to commit any of The act of an employer in having certain services or functions
the following unfair labor practice: being performed by union members contracted out is NOT per se an
unfair labor practice act. It is only when the contracting out of the
a. To interfere with, restrain or coerce employees services or functions being performed by union members will
in the exercise of their right to self-organization; interfere with, restrain or coerce employees in the exercise of their
right to self-organization that it shall be unlawful and shall
constitute ULP act. [Sec. 6 (f) DOLE Department Order No. 18-02,
Art. 255, LC Series of 2002]
The Department shall help promote and gradually Employees of an appropriate bargaining unit who are not
develop, with the agreement of labor organizations members of the recognized collective bargaining agent may be
and employers, labor-management cooperation assessed a reasonable fee equivalent to the dues and other fees
programs at appropriate levels of the enterprise paid by members of the recognized collective bargaining agent, if
based on the shared responsibility and mutual respect such non-union members accept the benefits under the collective
in order to ensure industrial peace and improvement bargaining agreement: Provided, that the individual authorization
in productivity, working conditions and the quality of required under Article 242, paragraph (o) of this Code shall not
working life. apply to the non-members of the recognized collective bargaining
agent;
UNION SECURITY CLAUSE is a stipulation in the CBA whereby the An employer is not denied the privilege of interrogating its
management recognizes that the membership of employees in employees as to their union affiliation, provided the same is for a
the union which negotiated the said agreement should be legitimate purpose and assurance is given by the employer that no
maintained and continued as a condition for employment or reprisals would be taken against unionists. Nonetheless, any
retention of employment. Its purpose is to safeguard and employer who engages in interrogation does so with notice that he
ensure the continued existence of the union. risks a finding of unfair labor practice if the circumstances are such
that his interrogation restrains or interferes with employees in the
Different kinds of Union Security Clause exercise of their rights to self-organization.
a. Closed shop agreement When the interrogation and investigation by the companys
b. Union shop agreement supervisory officials of the employees in such a way that it hampers
c. Agency shop agreement the exercise of their right to self-organization, ULP is committed.
d. Maintenance of membership agreement The subjection by the company of union to vilification and its
e. Check off participation in soliciting membership for a competing union is also
f. Modified closed shop agreement ULP act.
g. Modified union shop agreement
h. Open shop agreement Speech
Del Monte v. Saldivar (2007) Insular Life Assurance Co. Employees Assn. v. Insular Life
Under the Labor Code, a dismissal may only be effected for any Assurance Co. Ltd (1971)
just or authorized causes as provided by the said law. A dismissal Indeed, it is an unfair labor practice for an employer operating
based on a union security clause of company CBA is not under a collective bargaining agreement to negotiate or to attempt
enumerated as one of the just or authorized causes in the Labor to negotiate with his employees individually in connection with
Code. But jurisprudence recognized that it is a State policy to changes in the agreement. And the basis of the prohibition
promote unionism to enable workers to negotiate with regarding individual bargaining with the strikers is that although the
management on an even level playing field and with more union is on strike, the employer is still under obligation to bargain
persuasiveness than if they were individually and separately bargain with the union as the employees' bargaining representative. This is
with the employer. For this reason, the law has allowed tantamount to an illegal act of interference.
stipulations for union shop and closed shop as a means of The sending of letter containing promises of benefits to the
encouraging workers to join ands support the union of their choice individual employees in order to entice them to return to work is
in the protection of their rights and interests vis--vis the employer. not protected by the free speech provision of the Constitution. The
Even though the law recognizes union shop agreement as valid, same is true with letters containing threats to obtain replacements
yet it cannot be used as a means to guarantee to the union an for the striking employees in the event they do not report to work
unmitigated discretion in terminating the employment status on an on a certain date. The free speech protection under the
employee-member. Therefore, the requirements laid down by the Constitution is inapplicable where the expression of opinion by the
law in determining whether or not an employee was validly employer or his agent contains promise of benefits, threats or
terminated must still be followed even if it is based on a closed- reprisals.
shop provision of a CBA, i.e. the substantive as well as the
procedural due process requirements. Espionage
Run-Away Shop
Art. 252
Complex Electronics Employees Association v. NLRC (1999) Meaning of duty to bargain collectively.
A RUNAWAY SHOP is defined as an industrial plant moved by The duty to bargain collectively means the
its owners from one location to another to escape union labor performance of a mutual obligation
regulations or state laws, but the term is also used to describe a o to meet and convene promptly and
plant removed to a new location in order to discriminate against expeditiously in good faith for the purpose of
employees at the old plant because of their union activities. It is negotiating an agreement with respect
one wherein the employer moves its business to another location or o to wages, hours of work and all other terms
it temporarily closes its business for anti-union purposes. A and conditions of employment including
runaway shop in this sense, is a relocation motivated by anti- proposals for adjusting any grievances or
union animus rather than for business reasons. questions arising under such agreement and
executing a contract incorporating such
agreements if requested by either party but
8.03 UNFAIR LABOR PRACTICE; EMPLOYER AND LABOR such duty does not compel any party to agree
ORGANIZATION ACTS VIOLATIVE OF RIGHT TO COLLECTIVE to a proposal or to make any concession.
BARGAINING
o However, the rights of all workers to self-organization, Interference constituting unfair labor practice will not cease to
collective bargaining and negotiations, and peaceful be such simply because it was susceptible of being thwarted or
concerted activities, including the right to strike in resisted, or that it did not proximately cause the result intended.
accordance with law (Section 3, Article XIII, 1987 For success of purpose is not, and should not, be the criterion
Constitution) equally call for recognition and protection. in determining whether or not a prohibited act constitutes unfair
Those contending interests must be placed in proper labor practice.
perspective and equilibrium. "The test of whether an employer has interfered with and
coerced employees within the meaning of subsection (a) (1) is
Republic Savings Bank v. CIR (1967) o whether the employer has engaged in conduct which it
It is for the Court of Industrial Relations, in the first instance, may reasonably be said tends to interfere with the free
to make the determination, "to weigh the employer's expressed exercise of employees' rights under section 3 of the Act,
motive in determining the effect on the employees of o and it is not necessary that there be direct evidence that
management's otherwise equivocal act" (NLRB vs. Stowe Spinning any employee was in fact intimidated or coerced by
Co., 336 U.S. 226). statements of threats of the employer if there is a
For the Industrial Peace Act does not undertake the impossible reasonable inference that anti-union conduct of the
task of specifying in precise and unmistakable language each employer does have an adverse effect on self-
incident which constitutes an unfair labor practice, rather, it leaves organization and collective bargaining." (Francisco, Labor
to the court the work of applying the Act's general prohibitory Laws 1956, Vol. II, p. 323, citing NLRB v. Ford, C.A., 1948,
language in the light of infinite combinations of events which may 170 F2d 735).
be charged as violative of its terms
8.06 ENFORCEMENT, REMEDIES AND SANCTIONS
8.05 MOTIVE, CONDUCT AND PROOF
1. PARTIES AGAINST WHOM ULP COMMITTED
1. EMPLOYER MOTIVE AND PROOF
Art. 212, LC
Visayan Bicycle Manuf. Co. v. National Labor Union (1965) (e) "Employer" includes any person acting in the
The act of the employer in provoking the union officers into a interest of an employer, directly or indirectly. The
fight by two recently hired employees pursuant to a strategy of the term shall not include any labor organization or any
company designed to provide an apparently lawful cause for their of its officers or agents except when acting as
dismissal, and said dismissed employees have not figured in similar employer.
incidents before or violated company rules in their several years (f) "Employee" includes any person in the employ of
with the company are deemed as an unfair labor practice. an employer. The term shall not be limited to the
employees of a particular employer, unless the
Me-Shurn Corp. v. Me-Shurn Workers Union (2005) Code so explicitly states. It shall include any
To justify the closure of a business and the termination of the individual whose work has ceased as a result of or
services of the concerned employees, the law requires that the in connection with any current labor dispute or
employer prove that it suffered substantial actual losses. The because of any unfair labor practice if he has not
cessation of the companys operations shortly after the obtained any other substantially equivalent and
organization of a labor union as well as the resumption of business regular employment.
barely a month after, gives credence to the employees claim that (g) "Labor organization" means any union or
the closure was meant to discourage union membership and to association of employees which exists in whole or in
interfere in union activities. These acts constitute unfair labor part for the purpose of collective bargaining or of
practices. The reason invoked by petitioners to justify the cessation dealing with employers concerning terms and
of corporate operations was alleged business losses which they, conditions of employment.
however, failed to substantiate by any credible evidence.
St. John Colleges Inc. v. St. John Academy Faculty and Employees
Union (2006) 2. PARTIES LIABLE FOR ACTS
Under the circumstances, it is not difficult to discern that the
closure was done to defeat the parties agreement to refer the EMPLOYER
labor dispute to the Secretary of Labor; to unilaterally end the
bargaining deadlock; to render nugatory any decision of the Art. 248
Secretary of Labor; and to circumvent the Unions right to collective The provisions of the preceding paragraph
bargaining and its members right to security of tenure. By notwithstanding, only the officers and agents of
admitting that the closure was due to irreconcilable differences corporations, associations or partnerships who have
between the Union and school management, specifically, the actually participated in, authorized or ratified unfair
financial aspect of the ongoing CBA negotiations, SJCI in effect labor practices shall be held criminally liable.
admitted that it wanted to end the bargaining deadlock and
eliminate the problem of dealing with the demands of the Union.
This is precisely what the Labor Code abhors and punishes as unfair
labor practice since the net effect is to defeat the Unions right to LABOR ORGANIZATION
collective bargaining.
Art. 249
2. TOTALITY OF CONDUCT RULE AND EFFECT OF FAILURE OF ACT The provisions of the preceding paragraph
notwithstanding, only the officers, members of
TOTALITY OF CONDUCT DOCTRINE governing boards, representatives or agents or members
It means that expressions of opinion by an employer of labor associations or organizations who have actually
though innocent in themselves, may be held to be constitutive of participated in, authorized or ratified unfair labor
unfair labor practice because of the circumstances under which practices shall be held criminally liable.
they were uttered, the history of the particular employers labor
relations or anti-union bias or because of their connection with an
established collateral plan of coercion or interference. [Insular Life
Assurance Co. Employees Assn. v. Insular Life (1971)] 3. PROSECUTION AND PRESCRIPTIVE PERIOD
Art. 247, LC
Concept of unfair labor practice and procedure for In labor jurisprudence, it is well-established that quitclaims
prosecution and/or complete releases executed by the employees do not estop
xxx them from pursuing their claims arising from the unfair labor
Consequently, unfair labor practices are not only practice of the employer. The basic reason for this is that such
violations of the civil rights of both labor and quitclaims and/or complete releases are against public policy and,
management but are also criminal offenses against therefore, null and void.
the State which shall be subject to prosecution and The acceptance of termination pay does not divest a laborer of
punishment as herein provided. the right to prosecute his employer for unfair labor practice acts.
Subject to the exercise by the President or by the
Secretary of Labor and Employment of the powers Reformist Union of R.B. Liner, Inc. v. NLRC (1997)
vested in them by Articles 263 and 264 of this Code, The agreement entered into by the company and the union,
o the civil aspects of all cases involving was in the nature of a compromise agreement, i.e., "an agreement
unfair labor practices, which may between two or more persons, who, for preventing or putting an
include claims for actual, moral, end to a lawsuit, adjust their difficulties by mutual consent in the
exemplary and other forms of manner which they agree on, and which everyone of them prefers
damages, attorneys fees and other to the hope of gaining, balanced by the danger of losing."
affirmative relief, Thus, in the agreement, each party made concessions in favor
- shall be under the jurisdiction of the of the other to avoid a protracted litigation.
Labor Arbiters. While we do not abandon the rule that "unfair labor practice
o The Labor Arbiters shall give utmost acts are beyond and outside the sphere of compromises," the
priority to the hearing and resolution agreement herein was voluntarily entered into and represents a
of all cases involving unfair labor reasonable settlement, thus it binds the parties.
practices. On this score, the Labor Code bestows finality to unvitiated
- They shall resolve such cases within compromise agreements. The private respondents' cause likewise
thirty (30) calendar days from the fails in light of Article 2037 of the Civil Code, which gives
time they are submitted for compromise agreements "the effect and authority of res judicata"
decision. upon the parties to the same, even when effected without judicial
approval.
Recovery of civil liability in the administrative The Labor Arbiter and the NLRC therefore erroneously
proceedings shall bar recovery under the Civil Code. reviewed an issue which had already been laid to rest by the parties
themselves and which, applying the principle of res judicata, they
could no longer relitigate.
CRIMINAL ASPECT DISINI: Did the Reformist case abandon the doctrine laid down by
the court in Gochanco and AFP Mutual Benefit Association? Note
Art. 247 that the Reformist case involved a compulsory arbitration.
Concept of unfair labor practice and procedure for Implication: One may argue that it is only applicable to a case
prosecution where the issue on ULP was to be resolved in a compulsory
xxx arbitration and the parties entered into a compromise agreement.
No criminal prosecution under this Title may be
instituted without a final judgment finding that an 5. REMEDIES AND SANCTIONS
unfair labor practice was committed, having been
first obtained in the preceding paragraph. CIVIL REMEDIES
o During the pendency of such
administrative proceeding, the running Art. 247
of the period of prescription of the Concept of unfair labor practice and procedure for
criminal offense herein penalized shall prosecution
be considered interrupted: xxx
o Provided, however, that the final Recovery of civil liability in the administrative
judgment in the administrative proceedings shall bar recovery under the Civil Code.
proceedings shall not be binding in the xx
criminal case nor be considered as
evidence of guilt but merely as proof
of compliance of the requirements Nueva Ecija I. Electric Coop. Inc. v. NLRC (2000)
therein set forth. Unfair labor practices violate the constitutional rights of
workers and employees to self-organization, are inimical to the
legitimate interests of both labor and management, including their
Gochangco Workers Union v. NLRC (1988) right to bargain collectively and otherwise deal with each other in
Before Batas Blg. 7029 was enacted into law, unfair labor an atmosphere of freedom and mutual respect; and disrupt
practices were considered administrative offenses, and have been industrial peace and hinder the promotion of healthy and stable
held akin to tort, wherein damages are payable. labor-management relations.
We therefore not only order herein the reinstatement of the For this reason, we find it proper in this case to impose moral
petitioner and the payment of backwages (including cost-of-living and exemplary damages on private respondent.
allowances) to them, but impose as well moral and exemplary
damages. PENAL REMEDIES
With respect to backwages, we hold the respondent E.G.
Gochangco, Inc. liable, in line with the recommendation of the Art. 247
Solicitor General and in accordance with accepted practice, for Concept of unfair labor practice and procedure for prosecution
backwages equivalent to 3 years without qualification or deduction. xxx
Recovery of civil liability in the administrative proceedings
4. COMPROMISE shall bar recovery under the Civil Code.
No criminal prosecution under this Title may be instituted without a
Gochangco Workers Union v. NLRC (1988) final judgment finding that an unfair labor practice was committed,
Unfair labor practices are not subject to compromises in any having been first obtained in the preceding paragraph.
event in view of the public interest involved therein.
Part VIII
6. LIMITATIONS
CONCERTED ACTIVITIES
A strike be declared only after the most thoughtful
9.01 BASIS OF RIGHT TO ENGAGE IN CONCERTED ACTIVITIES
consultation, conducted in the only way allowed, that is,
peacefully, and in every case conformably to reasonable
3. CONSTITUTION regulation.
Any violation of the legal requirements and strictures, such as
Art. XIII. Section 3 a defiance to a return-to-work order in industries affected with
It shall guarantee the rights of all workers to self- organization, public interest, will render the strike illegal to the detriment of
collective bargaining and negotiations, the very workers it is supposed to protect.
and peaceful concerted activities, (BLT Bus Company v. NLRC, 1992)
- including the RIGHT TO STRIKE
- in accordance with law.
9.02 STRIKE ACTIVITY
PURPOSE AND MEANS TEST
9. DEFINITION
Purpose: For purpose of enforcing right to:
1. Self-Organization (Strikes against ULP) and Art. 212(o)
2. Collective bargaining and negotiations "Strike" means any temporary stoppage of work by the
(economic strikes based on bargaining concerted action of employees as a result of an industrial or
deadlock) labor dispute.
4. Means: Peaceful and in accordance with law
Luzon Marine Dept. Union v. Roldan (1950) Strike - any temporary stoppage of work by the concerted action of
The law does not look with favor upon strikes and lockouts employees as a result of an industrial or labor dispute.
because of their disturbing and pernicious effects upon the social
order and the public interests; to prevent or avert them and to Labor dispute - any controversy or matter concerning terms or
implement section 6, Article XIV of the Constitution, the law has conditions of employment or the association or representation of
created several agencies, namely: the Bureau of Labor, the persons in negotiating, fixing, maintaining, changing or arranging
Department of Labor, the Labor-Management Advisory Board, and the terms and conditions of employment, regardless of whether the
the Court of Industrial Relations. disputants stand in the proximate relation of employer and
employee. (Bukluran ng Manggagawa sa Clothman Knitting
Paragraphs (c) and (f) of Article 263 mandate the following Corporation-Solidarity Unions in the Phil v. CA, 2005)
procedural steps to be followed before a strike may be staged:
1. filing of notice of strike, The term strike shall comprise not only concerted work
2. taking of strike vote, and stoppages, but also slowdowns, mass leaves, sitdowns,
3. reporting of the strike vote result to the Department of attempts to damage, destroy or sabotage plant equipment and
Labor and Employment. facilities, and similar activities.
these requirements are mandatory, meaning, non-compliance (Samahang Manggagawa v. Sulpicio Lines, 2004)
therewith makes the strike illegal. The evident intention of the
law in requiring the strike notice and strike-vote report is to Basic Concepts:
reasonably regulate the right to strike, which is essential to the
attainment of legitimate policy objectives embodied in the 1. Initiating Party:
law. Employer: Lockout
(Stamford Marketing Corp v. Julian, 2004) Union: Strike
No strike or lockout shall be declared after assumption of 3. In cases of unfair labor practice, the period of notice shall
jurisdiction by the President or the Minister or after certification or be 15 days and in the absence of a duly certified or
submission of the dispute to compulsory or voluntary arbitration or recognized bargaining agent, the notice of strike may be
during the pendency of cases involving the same grounds for the filed by any legitimate labor organization in behalf of its
strike or lockout. (Art. 264) members.
a. However, in case of dismissal from employment of union
officers duly elected in accordance with the union
WAGE DISTORTION cannot be a ground for strike. constitution and by-laws, which may constitute union
A SLOWDOWN or a strike on an installment plan is prohibited. busting, where the existence of the union is threatened,
It is a willful reduction in the rate of work by the the 15-day cooling-off period shall not apply and the
concerted action of the employees for the purpose of restricting the union may take action immediately.
output of the employer, in relation to a labor dispute. It is an
activity by which workers, without a complete stoppage of work, 15. PROCEDURAL REQUIREMENTS
retard production or their performance of duties and functions to
compel management to grant their demands. Requisites of a valid strike/lockout:
Such act is inherently illicit and unjustifiable because 1) Good faith bargaining has been conducted in accordance with
while the employees continue to work, they, at the same time, Art. 250 (Art. 264, a)
select what part of their duties they perform. In essence, they work 2) The following procedural requisites are met: (Art. 263; c, f)
on their own terms. (Ilaw at Buklod ng Manggagawa (IBM) v.
NLRC, 1991) a. Notice of Strike/Lockout 0 (Union Busting) or 15 (ULP) or 30
(BD) days cooling-off period; filed with DOLE
A strike that is undertaken, despite the issuance by the SOLE of b. Strike/Lockout Vote approved by a majority of union
an assumption or certification order, becomes a prohibited members/board of directors or partners through secret ballot in a
activity and, thus, illegal pursuant to Article 264 of the Labor meeting called for the purpose
Code of the Philippines, as amended. As this Court ruled in c. Notice of Result of Strike/Lockout Vote filed with DOLE at least
Union of Filipro Employees v. Nestle Philippines, Inc., under 7 days before the intended date of strike
Article 264(a) of the said code, once an assumption
certification order is issued by the SOLE, strikes are enjoined or 3) Must be based on valid grounds
if one has already taken place, all strikers shall immediately 4) The strike or lockout must be pursued within the bounds of the
return to work. (GRAND BOULEVARD HOTEL V. GRAND LABOR law (Art. 264)
ORGANIZATION, 2003)
Also, take note of the following:
NO STRIKE CLAUSE 5) Statutory prohibition as to striking workers (i.e. Government
applicable only to economic strikes, not ULP strikes employees can organize but cannot strike)
6) If an injunction is subsequently ordered, strike/lockout must
A "no strike, no lock-out" provision in the Collective Bargaining cease
Agreement ("CBA") is a valid stipulation although the clause may be 7) No-Strike Clause in CBA affects only economic strikes, not
invoked by an employer only when the strike is economic in nature strikes based on ULP
or one which is conducted to force wage or other concessions from Duty of DOLE during cooling-off period: to exert all efforts at
the employer that are not mandated to be granted by the law itself. mediation and conciliation to effect a voluntary settlement. Should
It would be inapplicable to prevent a strike which is grounded on the dispute remain unsettled until the lapse of the requisite number
unfair labor practice. of days from the mandatory filing of the notice, the labor union may
(Panay Electric Co. v. NLRC, 1995; Malayang Samahan ng mga strike or the employer may declare a lockout.
Manggagawa sa Greenfield v. Ramos, 2000)
Piero v. NLRC (2004)
14. STRIKING PARTY Under Art. 263, the requisites for a valid strike are as follows:
3. a notice of strike filed with the DOLE thirty days before
the intended date thereof or fifteen days in case of unfair
Who may file (IRR, Book V, Rule XXII, Sec. 6): labor practice
1) If based on ULP, any Legitimate Labor Organization (in the 4. strike vote approved by a majority of the total union
absence of SEBA) membership in the bargaining unit concerned obtained
2) If based on BD, SEBA by secret ballot in a meeting called for that purpose;
5. notice given to the DOLE of the results of the voting at
least seven days before the intended strike.
These requirements are mandatory and failure of a union
Where to file (IRR, Book V, Rule XXII, Sec. 1): to comply therewith renders the strike illegal.
National Conciliation and Mediation Board (NCMB) Capitol Medical Center, Inc. v. NLRC (2005)
Requirements are mandatory, meaning, non-compliance parties to bargain collectively in good faith and prohibit them from
therewith makes the strike illegal. The evident intention of the impeding or disrupting the proceedings.
law in requiring the strike notice and strike-vote report is to Moreover, it bears stressing that Article 264(a) of the Labor
reasonably regulate the right to strike, which is essential to the Code explicitly states that a declaration of strike without first having
attainment of legitimate policy objectives embodied in the filed the required notice is a prohibited activity, which may be
law. prevented through an injunction in accordance with Article 254.
(Bukluran ng Manggagawa sa Clothman Knitting Corporation- Clearly, public respondent should have granted the injunctive relief
Solidarity Unions in the Phil. For Employment and Reforms v. to prevent the grave damage brought about by the unlawful strike.
CA, 2005)
Malayang Samahan ng mga Manggagawa sa Greenfield v. Ramos
16. TEST OF LEGALITY (2000)
Petitioners believed in good faith that in dismissing them upon
LEGAL STRIKES request by the federation, respondent company was guilty of unfair
labor pratice in that it violated the petitioners right to self-
Purpose and Means Test organization. The strike was staged to protest respondent
companys act of dismissing the union officers.
Luzon Marine Dept Union v. Roldan (1950) Even if the allegations of unfair labor practice are
In the case of Rex Taxicab Company vs. Court of Industrial subsequently found out to be untrue, the presumption of
Relations (70 Phil., 621), wherein this Supreme Court held that "the legality of the strike prevails.
employee, tenant or laborer is inhibited from striking or walking out
of his employment only when so enjoined by the Court of Industrial Guidelines and Balancing of Interest
Relations,"
c. it was also held that "in cases not falling within the Shell Oil Workers Union v. Shell Co. of the Phils (1971)
prohibition, the legality or illegality of a strike depends, A strike otherwise valid, if violent in character, maybe placed
first, upon the purpose for which it is maintained, and, beyond the pale. Care is to be taken, however, especially where an
second, upon the means employed in carrying it on." unfair labor practice is involved, to avoid stamping it with illegality
d. Thus, if the purpose which the laborers intend to just because it is tainted by such acts. To avoid rendering illusory
accomplish by means of a strike is trivial, unreasonable or the recognition of the right to strike, responsibility in such a case
unjust, or if in carrying on the strike the strikers should should be individual and not collective. A different conclusion
commit violence or cause injuries to persons or damage would be called for, of course, if the existence of force while the
to property strike lasts is pervasive and widespread, consistently and
the strike, although not prohibited by injunction, deliberately resorted to as a matter of policy. It could be reasonably
may be declared by the court illegal, with the concluded then that even if justified as to ends, it becomes illegal
adverse consequences to the strikers. because of the means employed'.
This is not by any means to condone the utilization of force by
Caltex Phil. Inc. v. Phil Labor Org. Caltex Chapter (1953) labor to attain its objectives. It is only to show awareness that in
Our constitutional government assures the ER against deprivation labor conflicts, the tension that fills the air as well as the feeling of
of their property except in accordance with the statutes or frustration and bitterness could break out in sporadic acts of
supplementary equitable principles. violence.
If there be in this case a weighing of interests in the balance,
the ban the law imposes on unfair labor practices by management
Philippine Marine Officers Guild v. Cia. Maritima (1968) that could provoke a strike and its requirement that it be conducted
Acts of violence in this jurisdiction, when committed in peaceably, it would be, to repeat, unjustified, considering all the
carrying on a strike are not to be overlooked in determining its facts disclosed, to stamp the strike with illegality. It is enough that
legality or illegality. individual liability be incurred by those guilty of such acts of violence
To overlook these acts of violence would encourage that call for loss of employee status. Such an approach is reflected in
abuses and terrorism and subvert the purpose of the law our recent decisions.
which provides for arbitration and peaceful settlement of
disputes.
If a strike is unjustified as when it is declared for trivial, DEFENSES GOOD FAITH - ULP
unjust or unreasonable purpose, the employer may not
be compelled to reinstate the strikers to their Gen. Rule: A strike based on non-strikeable grounds is illegal
employment. More so, when the strike is carried on Exception: Employees believe in good faith that ULP acts exist so as
illegally. to constitute a valid ground to strike
(Interwood Employees Assoc v. Intl Hardwood, 1956)
San Miguel Corp. v. NLRC (2003)
Pursuant to Article 218 (e), the coercive measure of injunction Interwood Employees Assoc. v. Intl Hardwood (1956)
may be used to restrain an actual or threatened unlawful strike. In An established caveat, however, is that a mere claim of good
the case at bar, petitioner sought a permanent injunction to enjoin faith would not justify the holding of a strike under the aforesaid
the respondents strike. A strike is considered as the most effective exception as, in addition thereto, the circumstances must have
weapon in protecting the rights of the employees to improve the warranted such belief. It is, therefore, not enough that the union
terms and conditions of their employment. However, to be valid, a believed that the employer committed acts of ULP when the
strike must be pursued within legal bounds. circumstances clearly negate even a prima facie showing to sustain
One of the procedural requisites that Article 263 of the Labor such belief.
Code and its Implementing Rules prescribe is the filing of a valid
notice of strike with the NCMB. Imposed for the purpose of PNOC Dockyard v. NLRC (1998)
encouraging the voluntary settlement of disputes, this requirement Although rejecting that PNOC and its subsidiaries were guilty
has been held to be mandatory, the lack of which shall render a of discrimination, the NLRC reiterated the policy enunciated in
strike illegal. several labor cases "that a strike does not automatically carry the
Clearly, therefore, applying the aforecited ruling to the case at stigma of illegality even if no unfair labor practice were committed
bar, when the NCMB ordered the preventive mediation on May 2, by the employer. It suffices if such a belief in good faith is
1994, respondent had thereupon lost the notices of strike it had entertained by labor as the inducing factor for staging a strike."
filed. Subsequently, however, it still defiantly proceeded with the Indeed, the presumption of legality prevails even if the
strike while mediation was ongoing, and notwithstanding the letter- allegation of unfair labor practice is subsequently found
advisories of NCMB warning it of its lack of notice of strike. to be untrue, provided that the union and its members
Such disregard of the mediation proceedings was a blatant believed in good faith in the truth of such averment.
violation of the Implementing Rules, which explicitly oblige the
SSS v. SSS Supervisors Union (1982) NATURE AND PURPOSE OF PICKET LINE
We find for the petitioner based on the equitable tenet of a
"fair day's wage for a fair day's labor." Security Bank Employees Union v. Security Bank and Trust Co.
"The age-old rule governing the relation between labor and (1968)
capital or management and employee is that of a 'fair day's age for This is not to say that picketing, like freedom of expression in
a fair day's labor.' If there is no work performed by the employee general, has no limits. Certainly, to the extent that it is an
there can be no wage or pay, unless of course the laborer was able, instrument of coercion rather than of persuasion, it cannot
willing and ready to work but "as illegally locked out, dismissed or rightfully be entitled to the protection associated with free speech.
suspended. It is hardly fair or just for an employee or laborer to Equally so, there can be no indiscriminate ban on the freedom to
fight or litigate against his employer on the employer's time." disseminate the facts of a labor dispute and to appeal for public
sympathy, which is the aim of peaceful picketing, without a
Phil. Diamond Hotel and Resort, Inc. v. Manila Diamond Hotel transgression of the Constitution, sufficient to oust a court of
Employees Union (2006) jurisdiction, even on the assumption that it was originally possessed
In Cromwell Commercial Employees and Laborers Union (PTUC) of such a competence, which was not so in this case as had been
v. Court of Industrial Relations, this Court made a distinction earlier made clear.
between two types of employees involved in a ULP: those who are
discriminatorily dismissed for union activities, and those who PAFLU V. Cloribel (1969)
voluntarily go on strike even if it is in protest of an ULP. The right to picket as a means of communicating the facts of a
Discriminatorily dismissed employees were ordered entitled to labor dispute is a phase of the freedom of speech guaranteed by
backpay from the date of the act of discrimination, that is, from the the constitution. If peacefully carried out, it can not be curtailed
day of their discharge, whereas employees who struck as a even in the absence of employer-employee relationship.
voluntary act of protest against what they considered a ULP of their The right is, however, not an absolute one. While peaceful
employer were held generally not entitled to backpay. picketing is entitled to protection as an exercise of free speech, we
Jurisprudential law, however, recognizes several exceptions to believe that courts are not without power to confine or localize the
the "no backwages rule," to wit: sphere of communication or the demonstration to the parties to
- when the employees were illegally locked to thus compel them to the labor dispute, including those with related interest, and to
stage a strike; insulate establishments or persons with no industrial connection or
- when the employer is guilty of the grossest form of ULP; having interest totally foreign to the context of the dispute.
- when the employer committed discrimination in the rehiring of Thus the right may be regulated at the instance of third parties
strikers refusing to readmit those against whom there were or "innocent bystanders" if it appears that the inevitable result of its
pending criminal cases while admitting nonstrikers who were also exercise is to create an impression that a labor dispute with which
criminally charged in court; or they have no connection or interest exists between them and the
- when the workers who staged a voluntary ULP strike offered to picketing union or constitute an invasion of their rights.
return to work unconditionally but the employer refused to
reinstate them.
PICKETING AND LIBEL LAWS
Improved Offer Balloting and Strikes
PCIB V. Philnabank Employees (1981)
Art. 265 There is a unique aspect to this action for libel against the
Philippine National Bank Employees' Association. It was filed by
plaintiff PCIB as a result of placards and signboards along the PNB
Improved offer balloting. building in Escolta, Manila, containing the following: "PCIB BAD
ACCOUNTS TRANSFERRED TO PNB-NIDC?"
In an effort to settle a strike, the Department of Labor and There was a labor controversy resulting in a strike, fortunately
Employment shall conduct a referendum by secret ballot on the lasting only for one day. The labor union made use of its
improved offer of the employer on or before the 30th day of the constitutional right to picket.
strike. From the time of Mortera vs. CIR, a 1947 decision this Court
has been committed to the view that' peaceful picketing is part of
3. When at least a majority of the union members vote to the freedom of speech guarantee of the Constitution. The latest
accept the improved offer the striking workers shall case in point where such a principle was reaffirmed expressly is
immediately return to work and the employer shall Associated Labor Union v. Gomez, a 1980 decision.
thereupon readmit them upon the signing of the There is no mention of the other placards but it is not unlikely
agreement. that to bolster its claim, mention was likewise made and in bold
In case of a lockout, the Department of Labor and Employment shall letters at that of such alleged failing of its management. That was
also conduct a referendum by secret balloting on the reduced offer the aim and intent as found by the lower court. That could not very
of the union on or before the 30th day of the lockout. well be disputed by plaintiff-appellant. Unfortunately, the offending
4. When at least a majority of the board of directors or imputation, but in the form of a question, was included. It was due
trustees or the partners holding the controlling interest in to a former official of plaintiff appellant's bank who was thereafter
the case of a partnership vote to accept the reduced named as President of the Philippine National Bank. Should there
offer, the workers shall immediately return to work and be an automatic attitude of condemnation for such incident?
the employer shall thereupon readmit them upon the If the realistic observation of Justice Frankfurter in Milk Wagon
signing of the agreement Drivers Union of Chicago v. Meadowmoor Dairies be heeded that
labor disputes give rise to strong emotional response, then the
decision reached by the lower court becomes even more
9.03 PICKETING acceptable.
5. It is a fact of industrial life, both in the Philippines as in
Definition: the United States, that in the continuing confrontation
PICKETING consists in walking or patrolling the vicinity of a place between labor and management, it is far from likely that
of business involved in a labor dispute to inform the public about the language employed would be both courteous and
the dispute. polite. Such being the case, there is no affront either to
reason or to the law in the complaint for libel being
Requisites of a valid picket: dismissed. In placing reliance on the constitutional right
1) Aim is to inform public about the labor dispute of freedom of expression, this Court once again makes
2) Must be conducted peacefully manifest its adherence to the principle first announced
- NOT carried on with intimidation, threats, coercion, by Justice Malcolm as ponente in the leading case of
force United States v. Bustos.
- NOT accompanied with vandalism 6. In no uncertain terms, it made clear that the judiciary, in
- NO obstruction of ingress/egress in place of business deciding suits for libel, must ascertain whether or not the
alleged offending words may be embraced by the industrial connection or having interest totally foreign to
guarantees of free speech and free press. It cannot be the context of the dispute.
too often said that Bustos was promulgated as far back as Thus, the right may be regulated at the instance of
March 8, 1918. A doctrine analogous in character. third parties or 'innocent bystanders' if it appears that
the inevitable result of its exercise is to create an
EMPLOYER-EMPLOYEE RELATIONSHIP impression that a labor dispute with which they have no
connection or interest exists between them and the
De Leon v. National Labor Union (1957) picketing union or constitute an invasion of their rights.
PICKETING; ABSENCE OF EMPLOYER-EMPLOYEE RELATIONSHIP
DOES NOT MAKE PICKETING ILLEGAL.-Picketing peacefully carried The same case state clearly and succinctly the rationalization
out is not illegal even in the absence of employer-employee for the court's regulation of the right to picket in the following wise
relationship, for peaceful picketing is a part of the freedom of and manner:
speech guaranteed by the Constitution. "Wellington and Galang are mere 'innocent
bystanders'. They are entitled to seek protection of their
CURTAILMENT rights from the courts and the courts may, accordingly,
legally extend the same. Moreover, PAFLU's right to
Free Telephone Workers Union v. PLDT Co. (1982) peacefully picket METBANK is not curtailed by the
Indeed, it is now well-settled that peaceful picketing cannot be injunctions issued by respondent judge. The picket is
restrained because the same is part of the freedom of speech but merely regulated to protect the rights of third parties.
petitioner fails to realize that the questioned July 16, 1965 order of And the reason for this is not farfetched. If the law fails
the Court of Industrial Relations did not refer to peaceful picketing. to afford said protection, men will endeavor to
In Mortera, supra, where the therein questioned order partly safeguard their rights by their own might, take the law
declared that ". . . picketing under any guise and form is hereby in their own hands, and commit acts which lead to
prohibited . . .," this Court ruled that the "order of the Court of breaches of the law. This should not be allowed to
Industrial Relations prohibiting picketing must be understood to happen."
refer only to illegal picketing, that is, picketing through the use of
illegal means. MSF Tire and Rubber Inc. v. CA (1999)
In this case, the questioned (restraining) order should also be Thus, an "innocent bystander," who seeks to enjoin a labor
taken as limited to the lifting of the picket lines which constituted strike, must satisfy the court that aside from the grounds specified
illegal picketing especially so because it expressly stated that the in Rule 58 of the Rules of Court, it is entirely different from, without
petitioner union and its officers, agents or symphatizers "are hereby any connection whatsoever to, either party to the dispute and,
directed to call off the strike declared on July 17, 1965, and to lift therefore, its interests are totally foreign to the context thereof.
the picket lines established in and around the premises of
respondent company's various offices and installations . . . . The PROHIBITED ACTIVITIES- PEACEFUL PICKETING
persons manning the picket lines in these places are hereby
enjoined from impeding and interfering with implementation of this Art. 264 (b)
Order as well as from interfering in any manner with the operations No person shall obstruct, impede, or interfere with, by force,
of respondent. violence, coercion, threats or intimidation, any peaceful picketing
by employees during any labor controversy or in the exercise of the
Nagkakaisang Manggagawa sa Cuizon Hotel v. Libron (1983) right to self-organization or collective bargaining, or shall aid or
The above restraining order had to be issued because as abet such obstruction or interference.
contended in the petition, the order of the labor arbiter certainly
cannot be declared final and executory upon the mere issuance 9.04 ROLE OF PEACE OFFICERS DURING STRIKES AND PICKETING
thereof. That is manifestly in contravention of the law. Article 223
of the Labor Code is quite explicit on the matter, a period of 10 days ESCORTING
being granted either or both to the parties involved from receipt of
any order to appeal to the National Labor Relations Commission. Art. 264 (d)
Moreover, the wholesale condemnation of peaceful picketing No public official or employee, including officers and personnel of
is likewise clearly bereft of support in law. As pointed out in a very the New Armed Forces of the Philippines or the Integrated National
recent decision decided this year, PAFLU v. CFI of Rizal: "It need not Police, or armed person,
be stressed that peaceful picketing is embraced in freedom of 3. shall bring in, introduce or escort in any manner,
expression. As emphatically declared in Philippine Commercial & 4. any individual who seeks to replace strikers in entering or
Industrial Bank v. Philnabank Employees' Association: 'From the leaving the premises of a strike area, or work in place of
time of Mortera v. Court of Industrial Relations, a 1947 decision this the strikers.
Court has been committed to the view that peaceful picketing is The police force shall keep out of the picket lines unless actual
part of the freedom of speech guarantee of the Constitution.' violence or other criminal acts occur therein:
Reference was made in such opinion to Associated Labor Union v. IV. Provided, That nothing herein shall be interpreted to
Gomez. prevent any public officer from taking any measure
necessary to maintain peace and order, protect life and
RESTRICTIONS, INNOCENT THIRD PARTY RULE AND LIABILITIES property, and/or enforce the law and legal order.
Liwayway Publishing Co. v. Permanent Concrete Workers Union ARREST AND DETENTION OF LAW VIOLATORS
(1981)
At this juncture, it is well to cite and stress the
pronouncements of the Supreme Court on the right to picket. Thus, Art. 266
in the case of PAFLU vs. Cloribel, the SC said:
"The right to picket as a means of communicating Requirement for arrest and detention.
the facts of a labor dispute is a phase of the freedom of
speech guaranteed by the constitution. If peacefully
Except on grounds of national security and public peace or in case
carried out, it cannot be curtailed even in the absence of
of commission of a crime,
employer-employee relationship.
The right is, however, not an absolute one. While
peaceful picketing is entitled to protection as an 3. no union members or union organizers may be arrested
exercise of free speech, we believe that courts are not or detained for union activities without previous
without power to confine or localize the sphere of consultations with the Secretary of Labor.
communication or the demonstration to the parties to
the labor dispute, including those with related interest,
and to insulate establishments or persons with no
Part IX
LABOR INJUNCTION 10.02 GENERAL RULE PROHIBITION
Art. 254
10.01 DEFINITION AND NATURE No temporary or permanent injunction or restraining order in any
case involving or growing out of labor disputes shall be issued by
INJUNCTION: An injunction is available as a remedy for harm for any court or other entity, except as otherwise provided in Articles
which there is no adequate remedy at law. Thus it is used to 218 and 264 of this code.
prevent a future harmful action rather than to compensate for an
injury that has already been occurred, or to provide relief from Art. 212 (l)
harm for which an award of money damages is not a satisfactory LABOR DISPUTE includes any controversy or matters:
solution or for which a monetary value is impossible to calculate. A concerning terms or conditions of employment or the
defendant who violates an injunction is subject to penalty for association or
contempt. (Webster) representation of persons in negotiating, fixing,
maintaining, changing or arranging the terms and
Philippine Airlines, Inc. v. NLRC (1998) conditions of employment,
GENERALLY, injunction is a preservative remedy for the regardless of whether the disputants stand in the
protection of one's substantive rights or interest. It is not a cause of proximate relation of employer and employee.
action in itself but merely a provisional remedy, an adjunct to a
main suit.
It is resorted to only when there is a pressing necessity to
avoid injurious consequences which cannot be remedied under any ART. 218
standard of compensation. The application of the injunctive writ Powers of the Commission. The Commission shall have the
rests upon the existence of an emergency or of a special reason power and authority:
before the main case be regularly heard. (e) To enjoin or restrain any actual or threatened commission of any
The essential conditions for granting such temporary or all prohibited or unlawful acts or to require the performance of a
injunctive relief are: particular act in any labor dispute
1) that the complaint alleges facts which appear to be which, if not restrained or performed forthwith, may
sufficient to constitute a proper basis for injunction and cause grave or irreparable damage to any party or render
2) that on the entire showing from the contending parties, ineffectual any decision in favor of such party:
the injunction is reasonably necessary to protect the legal Provided, That no temporary or permanent injunction in
rights of the plaintiff pending the litigation. any case involving or growing out of a labor dispute as
defined in this Code shall be issued
Injunction is also a special equitable relief granted only in except after hearing the testimony of witnesses, with opportunity
cases where there is no plain, adequate and complete remedy at for cross-examination, in support of the allegations of a complaint
law. made under oath,
and testimony in opposition thereto, if offered, and only after a
The foregoing ancillary power may be exercised by the Labor finding of fact by the commission, to the effect:
Arbiters: (1) That prohibited or unlawful acts have been
ONLY as an INCIDENT to the cases pending before them threatened and will be committed and will be
in order to preserve the rights of the parties during the continued unless restrained but no injunction
pendency of the case, or temporary restraining order shall be issued
BUT excluding labor disputes involving strikes or lockout. on account of any threat, prohibited or
unlawful act, except against the person or
Why does injunction not apply to the facts of this case? persons, association or organization making
In the present case, there is no labor dispute between the the threat or committing the prohibited or
petitioner and private respondents as there has yet been no unlawful act or actually authorizing or
complaint for illegal dismissal filed with the labor arbiter by the ratifying the same after actual knowledge
private respondents against the petitioner. thereof;
Furthermore, an examination of private respondents' petition for
injunction reveals that it has no basis since there is no showing of 2) That substantial and irreparable injury to
any urgency or irreparable injury which the private respondents complainants property will follow;
might suffer.
3) That as to each item of relief to be granted,
When is an injury considered irreparable? greater injury will be inflicted upon
An injury is considered irreparable if it is of such constant and complainant by the denial of relief than will
frequent recurrence that no fair and reasonable redress can be had be inflicted upon defendants by the granting
therefor in a court of law, or where there is no standard by which of relief;
their amount can be measured with reasonable accuracy, that is, it
is not susceptible of mathematical computation. 4) That complainant has no adequate remedy at
It is considered irreparable injury when it cannot be law; and"
adequately compensated in damages due to the nature of the injury
itself or the nature of the right or property injured or when there (5) That the public officers charged with the duty to
exists no certain pecuniary standard for the measurement of protect complainants property are unable or
damages. unwilling to furnish adequate protection.
Provided, however, such an injunction is not to enjoin the strike itself, but only unlawful
activities.
a) the complainant "shall also allege that, unless a
temporary restraining order shall be issued without notice,
10.03 EXCEPTIONS WHEN INJUCTION ALLOWED
a SUBSTANTIAL and IRREPARABLE
INJURY to complainant's PROPERTY will Ilaw at Buklod ng Manggagawa v. NLRC (1991)
be unavoidable;" HELD: Also untenable is the Union's other argument that the
respondent NLRC Division had no jurisdiction to issue the
b) there is "TESTIMONY under OATH, sufficient, if sustained, temporary restraining order or otherwise grant the preliminary
to justify the Commission in issuing a temporary injunction injunction prayed for by SMC and that, even assuming the contrary,
upon hearing after notice;" the restraining order had been improperly issued. The Court finds
that the respondent Commission had acted entirely in accord with
c) the "temporary restraining order shall be effective for no applicable provisions of the Labor Code.
longer than twenty (20) days and shall become void at the GENERAL RULE:
expiration of said twenty (20) days." Article 254 of the Code provides that:
"No temporary or permanent injunction or
restraining order in any case involving or
d) No such temporary restraining order or temporary growing out of labor disputes shall be issued by
injunction shall be issued except on condition that any court or other entity, except as otherwise
"complainant shall first file an undertaking with adequate provided in Articles 218 and 264 . . .
security in an amount to be fixed by the Commission sufficient EXCEPTIONS:
to recompense those enjoined for any loss, expense or Article 264 lists down specific "prohibited activities" which
damage caused by the improvident or erroneous issuance of may be forbidden or stopped by a restraining order or
such order or injunction, including all reasonable costs, injunction.
together with a reasonable attorney's fee, and expense of Article 218 inter alia enumerates the powers of the
defense against the order or against the granting of any National Labor Relations Commission and lays down the conditions
injunctive relief sought in the same proceeding and under which a restraining order or preliminary injunction may issue,
subsequently denied by the Commission;" and the procedure to be followed in issuing the same.
Among the powers expressly conferred on the Commission by
The UNDERTAKING herein mentioned shall be understood to Article 218 is the power to "enjoin or restrain any actual or
threatened commission of any or all prohibited or unlawful acts or
constitute an agreement into by the complainant and the surety
upon which an order may be rendered in the same suit or to require the performance of a particular act in any labor dispute
which,:
proceeding against said complainant and surety upon a hearing to
assess damages, of which hearing complainant and surety shall if not restrained or performed forthwith, may cause
have reasonable notice, the said complainant and surety submitting grave or irreparable damage to any party or render
themselves to the jurisdiction of the Commission for that purpose. ineffectual any decision in favor of such party . . . ."
But nothing herein contained shall deprive any party having a claim National Mines and Allied Workers v. Vera (1984)
or cause of action under or upon such undertaking from electing to An injunction is a proper remedy to prevent a sheriff from
pursue his ordinary remedy by suit at law or in equity: selling the property of one person for the purpose of paying the
debts of another." (In this case, NO LABOR DISPUTE exists).
Provided, further, That the reception of evidence for the application To sustain petitioners' theory will inevitably lead to disastrous
of a writ of injunction may be delegated by the Commission to any consequences and lend judicial imprimatur to deprivation of
of its Labor Arbiters who shall conduct such hearings in such places property without due process of law.
as he may determine to be accessible to the parties and their Simply because a writ of execution was issued by the NLRC
witnesses and shall submit thereafter his recommendation to the does not authorize the sheriff implementing the same to levy on
Commission. anybody's property. To deny the victim of the wrongful levy, the
recourse such as that availed of by the herein private respondents,
Caltex Filipino Managers and Supervisors Assoc. v. CIR (72) under the pretext that no court of general jurisdiction can interfere
RATIONALE for prohibition: with the writ of execution issued in a labor dispute, will be
1) It is well known that the scheme in Republic Act No. 875 sanctioning a greater evil than that sought to be avoided by the
for achieving industrial peace rests essentially on a FREE Labor Code provision in question. Certainly, that could not have
AND PRIVATE AGREEMENT between the employer and been the intendment of the law creating the NLRC. For well-settled
his employees as to the terms and conditions under is the rule that the power of a court to execute its judgment
which the employer is to give work and the employees extends only over properties unquestionably belonging to the
are to furnish labor, unhampered as far as possible by judgment debtor.
judicial or administrative intervention. On this premise
the lawmaking body has virtually prohibited the issuance Ravago v. Eastern Marine Ltd (2005)
of injunctive relief involving or growing out of labor NO Labor Dispute exists in this case
disputes. Facts: Petitioner is a seafarer who was hired on a contractual
2) The prohibition to issue labor injunctions is designed to basis. Shortly after the termination of his latest contract, he was
give labor a comparable bargaining power with capital granted a vacation leave. During that time, he was hit by a stray
and must be liberally construed to that end. bullet on his left leg which caused permanent injury. Eastern Marine
refused to re-hire him. Petitioner filed a case for illegal dismissal.
GENERAL RULE: there can be no injunction issued against any The Labor Arbiter found that Petitioner was not illegally
strike. dismissed. NLRC reversed. On appeal, CA issued a preliminary
EXCEPT in only one instance, that is, when a labor dispute injunction.
arises in an INDUSTRY INDISPENSABLE TO THE NATIONAL INTEREST The petitioner asserts that the CA violated Article 254 of the
and such dispute is CERTIFIED BY THE PRESIDENT of the Philippines Labor Code when it issued a temporary restraining order, and
to the Court of Industrial Relations in compliance with Sec. 10 of thereafter a writ of preliminary injunction, to derail the
Republic Act No. 875. enforcement of the final and executory judgment of the Labor
Arbiter as affirmed by the NLRC. On the other hand, the
Purpose of an injunction in an UNCERTIFIED case: As a corollary to respondents contend that the issue has become academic since the
this, an injunction in an uncertified case must be based on the strict CA had already decided the case on its merits.
requirements of Sec. 9(d) of Republic Act No. 875; the purpose of
Held: The petitioners reliance on Article 25 of the Labor Code 5) That the public officers charged with the duty to
is misplaced. The law proscribes the issuance of injunctive relief protect complainant's property are unable or
only in those cases involving or growing out of a labor dispute. unwilling to furnish adequate protection."
The case before the NLRC neither involves nor grows out
of a labor dispute. It did not involve the fixing of terms or EXCEPTION: When it can issue ex parte.
conditions of employment or representation of persons However, a temporary restraining order may be issued ex
with respect thereto. parte under the following conditions:
In fact, the petitioners complaint revolves around the a. the complainant "shall also allege that, unless a
issue of his alleged dismissal from service and his claim temporary restraining order shall be issued without
for backwages, damages and attorneys fees. Moreover, notice,
Article 254 of the Labor Code specifically provides that a SUBSTANTIAL and IRREPARABLE INJURY to
the NLRC may grant injunctive relief under Article 218 complainant's PROPERTY will be unavoidable;"
thereof. b. there is "TESTIMONY under OATH, sufficient, if sustained,
Besides, the anti-injunction policy of the Labor Code, basically, to justify the Commission in issuing a temporary
is freedom at the workplace. It is more appropriate in the injunction upon hearing after notice;"
promotion of the primacy of free collective bargaining and c. the "complainant shall first file an undertaking with
negotiations, including voluntary arbitration, mediation and adequate security in an amount to be fixed by the
conciliation, as modes of settling labor and industrial disputes. Commission sufficient to recompense those enjoined for
any loss, expense or damage caused by the improvident
or erroneous issuance of such order or injunction,
10.04 ISSUING AGENCY including all reasonable costs, together with a reasonable
attorney's fee, and expense of defense against the order
or against the granting of any injunctive relief sought in
1. NATIONAL LABOR RELATIONS COMMISSION AND ROLE OF THE
the same proceeding and subsequently denied by the
LABOR ARBITER
Commission;" and
See Art. 218 (e) Above
Bisig ng Manggagawa, etc. v. NLRC (1993)
In the case at bar, the records will show that the respondent
ROLE OF THE LABOR ARBITER ( Book V Rule XXI sec. 13) NLRC failed to comply with the letter and spirit of Article 218 (e), (4)
The reception of evidence for the application of the writ of and (5) of the Labor Code in issuing its Order of May 5, 1992.
injunction may be delegated by the Commission to any Labor
Arbiter who shall submit his recommendations to the Commissions Article 218 (e) of the Labor Code provides both the
for its consideration and resolution. procedural and substantive requirements which must
strictly be complied with before a temporary or
permanent injunction can issue in a labor dispute
2. PROCEDURAL REQUIREMENTS AND RULES FOR THE ISSUANCE "Verily, the factual circumstances proven by the evidence
OF LABOR INJUNCTIONS show that there was no concurrence of the five (5)
prerequisites mandated by Art. 218(e) of the Labor Code.
Ilaw at Buklod ng Manggagawa (IBM) v. NLRC (1991) Thus there is no justification for the issuance of the
GENERAL RULE: Cannot issue EX PARTE questioned Order of preliminary injunction."
As a rule such restraining orders or injunctions do not issue ex
parte, but only after compliance with the following requisites, to To be sure, the issuance of an ex parte temporary restraining
wit: order in a labor dispute is not per se prohibited. Its issuance,
a. a HEARING held "after due and PERSONAL NOTICE however, should be characterized by care and caution for the law
thereof has been served, in such manner as the requires that it be clearly justified by considerations of EXTREME
Commission shall direct, to all known persons against NECESSITY, i.e., when the commission of unlawful acts is causing
whom relief is sought, and also to the Chief Executive and substantial and irreparable injury to company properties and the
other public officials of the province or city within which company is, for the moment, bereft of an adequate remedy at law.
the unlawful acts have been threatened or committed This is as it ought to be, for imprudently issued temporary
charged with the duty to protect complainant's property restraining orders can break the back of employees engaged in a
legal strike.
Arbiter or med-arbiter may enjoin any or all acts (1) That prohibited or unlawful acts have
involving or arising from any case pending before any of been threatened and will be committed
said offices or officials which if not restrained forthwith and will be continued unless restrained
may cause grave or irreparable damage to any of the but no injunction or temporary
parties to the case or seriously affect social or economic restraining order shall be issued on
stability. account of any threat, prohibited or
unlawful act, except against the person or
While it is true that the Med-Arbiter has the authority to issue persons, association or organization
a writ of preliminary injunction, or a temporary restraining order making the threat or committing the
against any act arising from any case pending before him, the prohibited or unlawful act or actually
exercise thereof shall always be subject to the test of authorizing or ratifying the same after
reasonableness. actual knowledge thereof;
The Med-Arbiter should ascertain that the act complained of,
if not restrained forthwith, may cause grave or irreparable damage "(2) That substantial and irreparable injury to
to any of the parties to the case. complainants property will follow;
IV. The UNDERTAKING WITH ADEQUATE SECURITY the prohibited or unlawful acts have been threatened and will be
(bond) committed unless restrained, or have been committed and will be
continued unless restrained (actual knowledge required)
A. The UNDERTAKING herein mentioned shall be substantial and irreparable injury to complainants property will
understood to constitute an agreement into by the follow
complainant and the surety upon which an order may greater injury will be inflicted upon complainant by the denial of
be rendered in the same suit or proceeding against the relief prayed for than will be inflicted upon the defendants by
said complainant and surety upon a hearing to assess granting the relief
damages, of which hearing complainant and surety the complainant has no adequate remedy at law
shall have reasonable notice, the said complainant and the public officers charged with the duty to protect
surety submitting themselves to the jurisdiction of the complainants property are unable or unwilling to urnish adequate
Commission for that purpose. protection
SUMMARY NOTES:
Definition:
Note: This remedy will apply only if there exists a labor dispute
Exceptions:
1) Art. 218 (e) to enjoin or restrain any actual or threatened
commission of any or all prohibited or unlawful acts or to require
the performance of a particular act in any labor dispute which, if
not restrained or performed forthwith, may cause grave or
irreparable damage to any party or render ineffectual any decision
in favor of such party.
2) Art. 263 (g) the SOLE or Commission may seek the assistance of
law enforcement agencies to ensure compliance with this provision
as well as with such orders as he may issue to enforce the same.
(IRR, Book V, Rule XXII, Sec. 14)
3) Ilaw at Buklod ng Manggagawa v. NLRC (1991) may issue
injunction to prevent any of the prohibited acts enumerated in Art.
264
2040 applicable to both compromises and arbitrations are REQUISITES FOR A COMPULSARY ARBITRATION (Art. 263, g):
obtaining, the arbitrators' award may be annulled or - there exists a LABOR DISPUTE
rescinded. - causing or likely to cause a STRIKE OR LOCK-OUT
Additionally, under Sections 24 and 25 of the Arbitration Law, - in an INDUSTRY INDISPENDSABLE TO THE NATIONAL INTERESTS
there are grounds for vacating, modifying or rescinding an
arbitrator's award. The Secretary of Labor and Employment MAY:
1) assume jurisdiction over the dispute and decide it OR
If courts refuse or neglect to inquire into the factual milieu of an 2) certify the same to the Commission (NLRC) for COMPULSORY
arbitrator's award to determine whether it is in accordance with law ARBITRATION.
or within the scope of his authority? How may the power of judicial
review be invoked? EFFECT of Assumption or Certification of SOLE:
This is where the proper remedy is certiorari under Rule 65 the
Revised Rules of Court. It is to be borne in mind, however, that this If the parties are yet to go on strike or lockout:
action will lie only where a grave abuse of discretion or an act - AUTOMATICALLY enjoining the intended or impending strike or
without or in excess of jurisdiction on the part of the voluntary lock-out as specified in the assumption or certification order.
arbitrator is clearly shown.
It should be stressed too, that voluntary arbitrators, by the If one has already taken place at the time of assumption or
nature of their functions, act in a quasi-judicial capacity. It stands to certification,
reason, therefore, that their decisions should not be beyond the - All striking or locked-out employees shall IMMEDIATELY RETURN
scope of the power of judicial review of this Court. TO WORK
- AND the employer shall IMMEDIATELY resume operations and
LM Power Engineering Corp. v. Capitol Industrial Construction READMIT all workers under the SAME terms and conditions
Groups (2003) prevailing before the strike or lock-out.
In any event, the inclusion of an arbitration clause in a contract
does not ipso facto divest the courts of jurisdiction to pass upon the
Note: The Secretary of Labor and Employment or the Commission
findings of arbitral bodies, because the awards are still judicially
may seek the assistance of law enforcement agencies to ensure the
reviewable under certain conditions.
compliance with this provision (Art. 263, g) as well as with such
Being an inexpensive, speedy and amicable method of settling
orders as he may issue to enforce the same.
disputes, arbitration -- along with mediation, conciliation and
negotiation -- is encouraged by the Supreme Court. Aside from
Art. 263 (g) on strikes/lockouts in medical institutions:
unclogging judicial dockets, arbitration also hastens the resolution
of disputes, especially of the commercial kind. It is thus regarded as
In labor disputes adversely affecting the continued operation of
the wave of the future in international civil and commercial
such hospitals, clinics or medical institutions,
disputes. Brushing aside a contractual agreement calling for
1) It shall be the DUTY of striking union or locking out employer to
arbitration between the parties would be a step backward.
provide and maintain an EFFECTIVE SKELETAL WORKFORCE of
Consistent with the above-mentioned policy of encouraging
medical and other health personnel,
alternative dispute resolution methods, courts should liberally
2) Whose movement and services shall be unhampered and
construe arbitration clauses. Provided such clause is susceptible of
unrestricted, as are necessary to insure the proper and adequate
an interpretation that covers the asserted dispute, an order to
protection of the life and health of its patients, most especially
arbitrate should be granted. Any doubt should be resolved in favor
emergency cases, for the duration of the strike or lockout.
of arbitration.
Sec 1 of Article II of the old Rules of Procedure Governing
The Secretary of Labor and Employment may IMMEDIATELY
Construction Arbitration indeed required the submission of a
assume, within twenty four (24) hours from knowledge of the
request for arbitration, as follows. However, the new Rules of
occurrence of such a strike or lockout, jurisdiction over the same or
Procedure Governing Construction Arbitration has dispensed with
certify it to the Commission for compulsory arbitration.
this requirement and recourse to the CIAC may now be availed of
whenever a contract contains a clause for the submission of a
future controversy to arbitration . Sec. 22 RA 8791
Clearly, there is no more need to file a request with the CIAC Banking institutions are industries indispensable to the national
in order to vest it with jurisdiction to decide a construction dispute. interest.
The arbitral clause in the Agreement is a commitment on the
part of the parties to submit to arbitration the disputes covered PAL v. NLRC (1989)
therein. Because that clause is binding, they are expected to abide Proceedings on appeal before the NLRC en banc cannot be
by it in good faith. And because it covers the dispute between the considered as part of the arbitration proceeding.
parties in the present case, either of them may compel the other to In its broad sense, arbitration is the reference of a dispute to
arbitrate. an impartial third person, chosen by the parties or appointed by
statutory authority to hear and decide the case in controversy
[Chan Linte v. Law Union and Rock, Inc. Co., 42 Phil. 548 (1921)].
11.05 COMPULSORY ARBITRATION When the consent of one of the parties is enforced by
statutory provisions, the proceeding is referred to as compulsory
arbitration.
1. DEFINITION AND NATURE OF DISPUTE SUBJECT TO
In labor cases, compulsory arbitration is the process of
COMPULSORY ARBITRATION
settlement of labor disputes by a government agency which has the
authority to investigate and to make an award which is binding on
Compulsory Arbitration is by mandate of law. While voluntary
all the parties
arbitration is by agreement of parties.
Under the Labor Code, it is the Labor Arbiter who is clothed
with the authority to conduct compulsory arbitration on cases
What is the type of dispute subject to compulsory
involving termination disputes [Article 217, Pres. Decree No. 442, as
arbitration? Labor disputes in industry indispensable to the
amended].
national interest.
When the Labor Arbiter renders his decision, compulsory
arbitration is deemed terminated because by then the hearing and
Who is initiating party? Initiated by the Secretary of Labor or determination of the controversy has ended.
the President.
GTE Directories Corp. v. GTE Directories Corp. Employees Union
Take note that the NLRC has no authority to initiate. The NLRC only (1991)
comes into the picture when the secretary of labor or the President The production and publication of telephone directories,
certifies the case to them. which is the principal activity of GTE, can scarcely be described as
an industry affecting the national interest. GTE is a publishing firm
the strike or lockout, then the unmistakable mandate must be President under the law, and this Court will not interfere in, much
followed by the Secretary. less curtail, the exercise of that prerogative.
Union of Filipro Employees v. Nestle Philippines (1990) St. Scholasticas College v. Torres (1992)
The assumption of jurisdiction by the Secretary of Labor over A return to work order is immediately executory notwithstanding
labor disputes causing or likely to cause a strike or lockout in an the filing of a motion for reconsideration.
industry indispensable to the national interest is in the nature of a An issue that is not part of the dispute may be ruled on a
POLICE POWER measure. compulsory arbitration case if it was submitted by the parties.
The compelling consideration of the Secretary's assumption of
The issue on whether respondent SECRETARY has the power to
jurisdiction is the fact that
assume jurisdiction over a labor dispute and its incidental
a prolonged strike or lockout is inimical to the national controversies, causing or likely to cause a strike or lockout in an
economy and industry indispensable to the national interest, was already settled
thus, the need to implement some measures to suppress any in International Pharmaceuticals, Inc. Secretary of Labor and
act which will hinder the company's essential productions is Employment. Therein, We ruled that:
indispensable for the promotion of the COMMON GOOD.
". . . [T]he Secretary was explicitly granted by Article
Corollary, the NLRC was thereby charged with the task of 263 (g) of the Labor Code the authority to assume
implementing the certification order for compulsory arbitration. jurisdiction over a labor dispute causing or likely to
As the implementing body, its authority did not include the cause a strike or lockout in an industry indispensable
power to amend the Secretary's order. to the national interest, and decide the same
accordingly. Necessarily, this authority to assume
When sitting in a compulsory arbitration certified to by the jurisdictional over the said labor dispute must include
Secretary of Labor, the NLRC is: and extend to all questions and controversies arising
- not sitting as a judicial court therefrom, including cases over which the Labor
- but as an administrative body charged with the duty to implement Arbiter has exclusive jurisdiction."
the order of the Secretary.
The submission of an incidental issue of a labor dispute, in
Intl Pharmaceuticals Inc. v. Secretary of DOLE (1992) assumption and/or certification cases, to the Secretary of Labor and
In the present case, the Secretary was explicitly granted by Art. Employment for his resolution is thus one of the instances referred
263(g) of the Labor Code the authority to assume jurisdiction over a to whereby the latter may exercise concurrent jurisdiction together
labor dispute causing or likely to cause a strike or lockout in an with the Labor Arbiters.
industry indispensable to the national interest, and decide the same
accordingly. Effect of non-compliance with return to work order
Non-compliance with the certification order of the Sec of
Necessarily, this authority to assume jurisdiction over the said labor Labor or a return to work order of the Commission shall be
dispute must include and extend to considered an illegal act committed in the course of the strike or
- all questions and controversies arising therefrom, lookout and shall authorize the Sec. of Labor or the Commission, as
- including cases over which the labor arbiter has exclusive the case may be, to enforce the same under pain or loss of
jurisdiction. employment status or entitlement to full employment benefits
from the locking-out employer or backwages, damages and/or
Moreover, Art. 217 is not without, but contemplates, other positive and/or affirmative reliefs, even to criminal
exceptions thereto. This is evident from the opening proviso therein prosecution against the liable parties . . ."
reading "(e)xcept as otherwise provided under this Code . . ."
Plainly, Article 263(g) was meant to make both the Secretary (or the It must be strictly complied with even during the pendency of
various regional directors) and the labor arbiters share jurisdiction, any petition questioning its validity (Union of Filipro Employees v.
subject to certain conditions. Nestle' Philippines, Inc., supra)
Otherwise, the Secretary would not be able to effectively and After all, the assumption and/or certification order is
efficiently dispose of the primary dispute. To hold the contrary may issued in the exercise of respondent SECRETARY's
even lead to the absurd and undesirable result wherein the compulsive power of arbitration and, until set aside, must
Secretary and the labor arbiter concerned may have diametrically therefore be immediately complied with.
opposed rulings. The rationale for this rule is explained in University of Sto.
Tomas v. NLRC,
c) Office of the President 263 (g) "To say that the return-to-work order effectivity must
wait affirmance in a motion for reconsideration is not
Feati University v. Feati University Faculty Club (1966) only to emasculate it but indeed to defeat its import, for
"It thus appears that when in the opinion of the President a by then the deadline fixed for the return to work would,
labor dispute exists in an industry indispensable to national interest in the ordinary course, have already passed and hence
and he certifies it to the Court of Industrial Relations the latter can no longer be affirmed insofar as the time element is
acquires jurisdiction to act thereon in the manner provided by law. concerned."
Thus the court may take either of the following courses:
a. it may issue an order forbidding employees to strike or The respective liabilities of striking union officers and
the employer to lockout its employees, or, failing in this, members who failed to immediately comply with the return-to-
b. it may issue an order fixing the terms and conditions of work order is outlined in Art. 264 of the Labor Code which provides
employment. It has no other alternative. It can throw the that any declaration of a strike or lockout after the Secretary of
case out in the assumption that the certification was Labor and Employment has assumed jurisdiction over the labor
erroneous. dispute is considered an illegal act. Any worker or union officer who
knowingly participates in a strike defying a return-to-work order
". . . The fact, however, is that because of the strike declared may, consequently, "be declared to have lost his employment
by the members of the minority union which threatens a major status."
industry the President deemed it wise to certify the controversy to
the Court of Industrial Relations for adjudication.
What matters is that by virtue of the certification made by the 5. EFFECT OF CERTIFICATION AND VIOLATION OF ORDER
President the case was placed under the jurisdiction of said court."
To certify a labor dispute to the CIR is the prerogative of the Effect of Assumption/Certification Order pursuant to Art. 263 (g):
1) Strike/Lockout automatically enjoined
2) Striking/Locked Out employees shall immediately return to work or not, the return to work order is an integral part of the
3) Employer shall resume operations and readmit all workers assumption of jurisidiction. (Sarmiento v. Tuico)
2) A return to work order does not violate the Involuntary Servitude
clause (Sarmiento v. Tuico)
Effect of Non-Compliance with Assumption/Certification Order:
3) A return-to-work order must be complied with as a matter of
For this purpose the contending parties are STRICTLY
duty not just a right.
ENJOINED to comply with such orders, prohibitions and/or
4) A return-to-work order may be appealed but even pending
injunctions as are issued by the Secretary of Labor and Employment
appeal the return-to-work order must still be followed.
or the Commission, under pain of immediate disciplinary action,
5) According to the Bagiou Colleges case: If there is doubt, take note
including dismissal or loss of employment status or payment by the
of the duty to comply. One merely has to file a motion for
locking-out employer of back wages, damages and other affirmative
clarification.
relief, even criminal prosecution against either or both of them.
(Art. 263, g)
TAKE NOTE: The extent of authority of the compulsory arbitration
are those that may be necessary to settle the dispute.
Sarmiento v. Tuico (1988)
The law itself provides that "such assumption or certification
shall have the effect of automatically enjoining the intended or 6. AWARDS AND ORDERS
impending strike. If one has already taken place at the time of
assumption or certification, all striking or locked out employees Art. 263
shall immediately return to work and the employer shall Strikes, picketing and lockouts.
immediately resume operations and readmit all workers under the i. The Secretary of Labor and Employment, the Commission or the
same terms and conditions prevailing before the strike or lockout." voluntary arbitrator shall decide or resolve the dispute, as the case
It must be stressed that while one purpose of the return-to- may be. The decision of the President, the Secretary of Labor and
work order is to protect the workers who might otherwise be Employment, the Commission or the voluntary arbitrator shall be
locked out by the employer for threatening or waging the strike, the final and executory ten (10) calendar days after receipt thereof by
more important reason is to prevent impairment of the national the parties.
interest in case the operations of the company are disrupted by a
refusal of the strikers to return to work as directed. Art. 277
It is also important to emphasize that the return-to-work order i. To ensure speedy labor justice, the periods provided in this Code
not so much confers a right as it imposes a duty; and while as a within which decisions or resolutions of labor relations cases or
right it may be waived, it must be discharged as a duty even against matters should be rendered shall be mandatory. For this purpose, a
the worker's will. case or matter shall be deemed submitted for decision or resolution
upon the filing of the last pleading or memorandum required by the
rules of the Commission or by the Commission itself, or the Labor
Not a violation of right against involuntary servitude
Arbiter, or the Director of the Bureau of Labor Relations or Med-
So imperative is the order in fact that it is not even considered Arbiter, or the Regional Director.
violative of the right against involuntary servitude, as this Court
held in Kaisahan ng Mga Manggagawa sa Kahoy v. Gotamco Upon expiration of the corresponding period, a certification stating
Sawmills. The worker can of course give up his work, thus severing why a decision or resolution has not been rendered within the said
his ties with the company, if he does not want to obey the order; period shall be issued forthwith by the Chairman of the
but the order must be obeyed if he wants to retain his work even if Commission, the Executive Labor Arbiter, or the Director of the
his inclination is to strike. Bureau of Labor Relations or Med-Arbiter, or the Regional Director,
as the case may be, and a copy thereof served upon the parties.
One other point that must be underscored is that the return-
to-work order is issued pending the determination of the legality or Despite the expiration of the applicable mandatory period, the
illegality of the strike. It is not correct to say that it may be enforced aforesaid officials shall, without prejudice to any liability which may
only if the strike is legal and may be disregarded if the strike is have been incurred as a consequence thereof, see to it that the
illegal, for the purpose precisely is to maintain the status quo while case or matter shall be decided or resolved without any further
the determination is being made. delay.
Disini: RULES REGARDING RETURN TO WORK ORDER The extent of judicial review over the Secretary of
1) The moment there is Presidential (or by Secretary of Labor) Labors arbitral award is not limited to a
assumption of jurisdiction, whether a return to work order is issued determination of grave abuse in the manner of the
secretarys exercise of his statutory powers. This
Court is entitled to, and must in the exercise of its exceptional circumstances do not obtain in the
judicial power review the substance of the instant cases to warrant the grant of financial
Secretarys award when grave abuse of discretion is assistance to the striking workers.
alleged to exist in the award, i.e., in the appreciation o To our mind, the strikers open and willful
of and the conclusions the Secretary drew from the defiance of the assumption order dated
evidence presented. September 16, 1995 constitute serious
misconduct as well as reflective of their moral
However, this Courts review of the substance does not character, hence, granting financial assistance
mean a re-calibration of the evidence presented before the DOLE to them is not and cannot be justified
but only a determination of whether the Secretary of Labors award
passed the test of reasonableness when he arrived at his
conclusions made thereon. The main thrust of a petition for 7. OPTION SUBMIT CASE VOLUNTARY ARBITRATION AFTER
certiorari under Rule 65 of the Rules of Court is only the correction CERTIFICATION
of errors of jurisdiction including the commission of grave abuse of
discretion amounting to lack or excess of jurisdiction. Art. 263
Strikes, picketing and lockouts.
However, for this Court to properly exercise the power of (h) Before or at any stage of the compulsory arbitration process, the
judicial review over a decision of an administrative parties may opt to submit their dispute to voluntary arbitration.
agency, such as the DOLE, it must first be shown that the
tribunal, board or officer exercising judicial or quasi- 8. COMPULSORY ARBITRATION AND LABOR RIGHTS
judicial functions has indeed acted without or in excess of
its or his jurisdiction, and that there is no appeal, or any Philtread Workers Union v. Confessor (1997)
plain, speedy and adequate remedy in the ordinary Petitioners contend that Article 263 (g) of the Labor
course of law. In the absence of any showing of lack of Code violates the workers right to strike which is provided for
jurisdiction or grave abuse tantamount to lack or excess by Section 3, Article XIII of the Constitution. The assailed
of jurisdiction, judicial review may not be had over an order of the Secretary of Labor, which enjoins the strike, is an
administrative agencys decision. We have gone over the utter interference of the workers right to self-organization,
records of the case at bar and we see no cogent basis to to manage their own affairs, activities and programs, and
hold that the Secretary of Labor has abused his therefore is illegal.
discretion. Held: The petition is devoid of merit. On the issue of the
constitutionality of Article 263 (g), the same had already been
The grant of plenary powers to the Secretary of Labor under resolved in Union of Filipro Employees vs. Nestle Philippines, Inc., to
Art. 263(g) makes it incumbent for him to bring about soonest, a wit:
fair and just solution to the differences between the employer and In the case at bar, no law has ever been passed by
the employees so that the damage such labor dispute might cause Congress expressly repealing Articles 263 and 264 of the
upon the national interest may be minimized as much as possible, if Labor Code. Neither may the 1987 Constitution be
not totally averted, by avoiding stoppage of work or any lagging of considered to have impliedly repealed the said Articles
the activities of the industry or the possibility of these contingencies considering that there is no showing that said articles are
which might cause detriment to such national interest. inconsistent with the said Constitution. Moreover, no
court has ever declared that the said articles are
On Backwages inconsistent with the 1987 Constitution.
Since, as correctly found by the Secretary of Labor, the strikers On the contrary, the continued validity and operation of
were not illegally dismissed, the COMPANY is under no obligation to Articles 263 and 264 of the Labor Code has been
pay backwages to them. It is simply inconsistent, nay, absurd, to recognized by no less than the Congress of the
award backwages when there is no finding of illegal dismissal Philippines when the latter enacted into law R.A. 6715,
(Filflex Industrial and Manufacturing Corporation, 286 SCRA 245) otherwise known as Herrera law, Section 27 of which
when the record shows that the striking workers did not comply amended paragraphs (g) and (l) of Article 263 of the
with lawful orders for them to return to work during said periods of Labor Code.
time. At any rate, it must be noted that Articles 263 (g) and 264
In fact, the Secretary of Labor observed that while it was of the Labor Code have been enacted pursuant to the
obligatory on the part of both parties to restore, in the police power of the State, which has been defined as the
meantime, the status quo obtaining in the workplace, power inherent in a government to enact laws, within
the same was not possible considering the strikers had constitutional limits, to promote the order, safety, health,
defied the return-to-work Order of this Office. With such morals and general welfare of society (People vs. Vera
blatant disregard by the strikers of official edicts ordering Reyes, 67 Phil. 190).
their temporary reinstatement, there is no basis to Article 263 (g) of the Labor Code does not violate the workers
award them backwages corresponding to said time constitutional right to strike. The foregoing article clearly does not
frames. Otherwise, they will recover something they interfere with the workers right to strike but merely regulates it,
have not or could not have earned by their willful when in the exercise of such right, national interests will be
defiance of the return-to-work order, a patently affected.
incongruous and unjust situation (Santos v. National The rights granted by the Constitution are not absolute.
Labor Relations Commission, 154 SCRA 166). They are still subject to control and limitation to ensure
On Award of Financial Assistance or Separation pay that they are not exercised arbitrarily. The interests of
The same view holds with respect to the award of financial both the employers and employees are intended to be
assistance or separation pay. The assumption for granting financial protected and not one of them is given undue
assistance or separation pay, which is, that there is an illegally preference.
dismissed employee and that illegally dismissed employee would The Secretary of Labor acts to maintain industrial peace. Thus,
otherwise have been entitled to reinstatement, is not present in the his certification for compulsory arbitration is not intended to
case at bench. impede the workers right to strike but to obtain a speedy
We are of course aware that financial assistance may be settlement of the dispute.
allowed as a measure of social justice in exceptional
circumstances and as an equitable concession. We are
likewise mindful that financial assistance is allowed only
in those instances where the employee is validly
dismissed for causes other than serious misconduct or
those reflecting on his moral character
o However, the attendant facts show that such
compulsory arbitration, the subsequent agreement of petitioner any of these categories - should then be considered as a
to submit the matter for arbitration in effect made the arbitration a special area of interest governed by a specific provision
voluntary one. The essence of voluntary arbitration, after all is that of law.
it is by agreement of the parties, rather than compulsion of law,
that a matter is submitted for arbitration. It does not matter that Ludo and Luym Corp v. Saornido (2003)
the person chosen as arbitrator is a labor arbiter who, under Art Arguments:
217 of the Labor Code, is charged with the compulsory arbitration Petitioner contends that the appellate court gravely erred
of certain labor cases. There is nothing in the law that prohibits when it upheld the award of benefits which were beyond the terms
these labor arbiters from also acting as voluntary arbitrators as long of submission agreement. Petitioner asserts that the arbitrator
as the parties agree to have him hear and decide their dispute. must confine its adjudication to those issues submitted by the
parties for arbitration, which in this case is the sole issue of the date
of regularization of the workers. Hence, the award of benefits by
JURISDICTION the arbitrator was done in excess of jurisdiction.
On the matter of the benefits, respondents argue that the
Disputes covered in Voluntary Arbitration: arbitrator is empowered to award the assailed benefits because
Gen. Rule (Art. 261): notwithstanding the sole issue of the date of regularization,
- Those unresolved grievances arising from the interpretation or implementation
standardof companion
the CBA; issues on reliefs and remedies are deemed
- Also, those arising from the interpretation or enforcement of company personnel policies
incorporated. Otherwise, the whole arbitration process would be
- Gross violations of CBA provision rendered purely academic and the law creating it inutile.
Excpeption (Art. 262):
- If parties agree, VA may hear and decide all other labor disputes including ULP and bargaining deadlock
Resolution:
The jurisdiction of Voluntary Arbitrator or Panel of Voluntary
Gross Violations of CBA, defined (Art. 261): Arbitrators and Labor Arbiters is clearly defined and specifically
flagrant and/or malicious refusal to comply with the economic delineated in the Labor Code (Art. 217 for LA, Art. 261-262 for VA).
provisions of the CBA While a voluntary arbitrator is not part of the governmental
unit or labor departments personnel, said arbitrator renders
arbitration services provided for under labor laws. Generally, the
Viviero v. Court of appeals (2000) arbitrator is expected to decide only those questions expressly
Termination disputes fall within the jurisdiction of the Labor Arbiter: delineated by the submission agreement.
Private respondents attempt to justify the conferment of Nevertheless, the arbitrator can assume that he has the
jurisdiction over the case on the Voluntary Arbitrator on the ground necessary power to make a final settlement since
that the issue involves the proper interpretation and arbitration is the final resort for the adjudication of
implementation of the Grievance Procedure found in the CBA. disputes.
They point out that when petitioner sought the assistance of In one case, the SC stressed that xxx the Voluntary
his Union to avail of the grievance machinery, he in effect Arbitrator had plenary jurisdiction and authority to
submitted himself to the procedure set forth in the CBA regarding interpret the agreement to arbitrate and to determine
submission of unresolved grievances to a Voluntary Arbitrator. the scope of his own authority subject only, in a proper
Held: The argument is untenable. The case is primarily a case, to the certiorari jurisdiction of this Court. The
termination dispute. Arbitrator, as already indicated, viewed his authority as
It is clear from the claim/assistance request form embracing not merely the determination of the abstract
submitted by petitioner to AMOSUP that he was question of whether or not a performance bonus was to
challenging the legality of his dismissal for lack of cause be granted but also, in the affirmative case, the amount
and lack of due process. thereof.
The issue of whether there was proper interpretation and By the same token, the issue of regularization should be
implementation of the CBA provisions comes into play viewed as two-tiered issue. While the submission agreement
only because the grievance procedure provided for in the mentioned only the determination of the date or regularization,
CBA was not observed after he sought his Unions law and jurisprudence give the voluntary arbitrator enough
assistance in contesting his termination. leeway of authority as well as adequate prerogative to accomplish
Thus, the question to be resolved necessarily springs the reason for which the law on voluntary arbitration was created
from the primary issue of whether there was a valid speedy labor justice. It bears stressing that the underlying reason
termination; without this, then there would be no reason why this case arose is to settle, once and for all, the ultimate
to invoke the need to interpret and implement the CBA question of whether respondent employees are entitled to higher
provisions properly. benefits. To require them to file another action for payment of
such benefits would certainly undermine labor proceedings and
A possible exception: contravene the constitutional mandate providing full protection to
In San Miguel Corp. v. National Labor Relations Commission labor.
this Court held that the phrase "all other labor disputes" may
include termination disputes provided that the agreement between PROCEDURE
the Union and the Company states "in unequivocal language that
[the parties] conform to the submission of termination disputes and Art. 262-A
unfair labor practices to voluntary arbitration." Procedures -
Ergo, it is not sufficient to merely say that parties to the The voluntary Arbitrators or panel of Voluntary Arbitrators shall
CBA agree on the principle that "all disputes" should first have the power to hold hearings, receive evidences and take
be submitted to a Voluntary Arbitrator. There is a need whatever action is necessary to resolve the issue or issues subject
for an express stipulation in the CBA that illegal of dispute, including efforts to effect a voluntary settlement
termination disputes should be resolved by a Voluntary between parties.
Arbitrator or Panel of Voluntary Arbitrators, since the
same fall within a special class of disputes that are All parties to the dispute shall be entitled to attend the arbitration
generally within the exclusive original jurisdiction of proceedings. The attendance of any third party or the exclusion of
Labor Arbiters by express provision of law. any witness from the proceedings shall be determined by the
Absent such express stipulation, the phrase "all disputes" Voluntary Arbitrator or panel of Voluntary Arbitrators. Hearing may
should be construed as limited to the areas of conflict be adjourned for a cause or upon agreement by the parties.
traditionally within the jurisdiction of Voluntary
Arbitrators, i.e., disputes relating to contract- Unless the parties agreed otherwise, it shall be mandatory for the
interpretation, contract-implementation, or Voluntary Arbitrators or panel of Voluntary Arbitrators to render an
interpretation or enforcement of company personnel award or decision within twenty ?(20) calendar days from the date
policies. Illegal termination disputes - not falling within of submission of the dispute to voluntary arbitration.
Citibank Employees Union v. MOLE (1980) Rule VII, Section 1 of the Procedural Guidelines in the
The award of the arbitrator in this case is not to be equated Conduct of Voluntary Arbitration Proceedings provides the
with a judicial decision. key. Therein, what constitutes the voluntary arbitrators decision
In effect, when in relation to a controversy as to working (and, by extension, that of the Panel of voluntary arbitrators) is
conditions, which necessarily include the amount of wages, defined with precision, to wit:
allowances, bonuses, overtime pay, holiday pay, etc., the parties
Section 1. Decision Award. -- The final arbitral disposition of The right of due process is fundamental in our legal system
issue/s submitted to voluntary arbitration is the Decision. The and we adhere to this principle not for reasons of convenience or
disposition may take the form of a dismissal of a claim or grant of merely to comply with technical formalities but because of a strong
specific remedy, either by way of prohibition of particular acts or conviction that every man must have his day in court.
specific performance of particular acts. In the latter case the
decision is called an Award. At this juncture, it may not be amiss to restate our previous
reminder to labor tribunals in the weighing of the rights and
In herein case, the Decision of the Panel was in the form of a interest of employers and employees, viz:
dismissal of petitioners complaint. Naturally, this dismissal was
contained in the main decision and not in the dissenting While the intendment of our laws is to favor the
opinion. Thus, under Section 6, Rule VII of the same guidelines employee, it in no way implies that the employer is
implementing Article 262-A of the Labor Code, this Decision, as a not entitled to due process. For a tribunal such as
matter of course, would become final and executory after ten (10) the NLRC to wantonly disregard the employers
calendar days from receipt of copies of the decision by the parties constitutional right to be heard is a matter that
even without receipt of the dissenting opinion unless, in the cause great concern to the Court. Such an action
meantime, a motion for reconsideration or a petition for review to can only result in public mistrust of our entire legal
the Court of Appeals under Rule 43 of the Rules of Court is filed system, and we strongly remind the NLRC of their
within the same 10-day period. duty to uphold an inspire confidence in the same.
8. APPEAL
The Court of Appeals, thus, committed grave abuse of
Luzon Development Bank v. Assoc of Luzon Devt Employees discretion amounting to lack of jurisdiction when it ordered the
(1995) immediate execution of the Voluntary Arbitrators award of
The Jurisdiction conferred by law on a voluntary arbitrator or a separation pay and attorneys fees, notwithstanding that the same
panel of such arbitrators is quite limited compared to the original was null and void for violation of petitioners right to due process of
jurisdiction of the labor arbiter and the appellate jurisdiction of the law.
NLRC for that matter.
The state of our present law relating to voluntary arbitration 9. COSTS
provides that "the award or decision of the Voluntary Arbitrator x x
x shall be final and executory after ten (10) calendar days from Art. 262-B. Cost of Voluntary Arbitration and Voluntary Arbitrators
receipt of the copy of the award or decision by the parties," fee.
while the "decision, awards, or orders of the Labor The parties to a Collective Bargaining Agreement shall provide
Arbiter are final and executory unless appealed to the therein a proportionate sharing scheme on the cost of the voluntary
Commission by any or both parties within ten (10) arbitration including the Voluntary Arbitrators fee.
calendar days from receipt of such decisions, awards, or
orders." The fixing of the fee of the Voluntary Arbitrators, whether
shouldered wholly by the parties or subsidized by the special
Hence, while there is an express mode of appeal from the
voluntary arbitration fund, shall take into account the following
decision of a labor arbiter, Republic Act No. 6715 is silent
factors:
with respect to an appeal from the decision of a
a. Nature of the case
voluntary arbitrator.
b. Time consumed in hearing the case
c. Professional Standing of the Voluntary Arbitrator
Assuming arguendo that the voluntary arbitrator or the panel
d. Capacity to Pay of the parties.
of voluntary arbitrators may not strictly be considered as a quasi-
judicial agency, board or commission, still both he and the panel are
comprehended within the concept of a "quasi-judicial SUMMARY NOTES
instrumentality."
A fortiori, the decision or award of the voluntary arbitrator or Definition:
panel of arbitrators should likewise be appealable to the Court of
Appeals, in line with the procedure outlined in Revised CONCILIATION process whereby the parties come
Administrative Circular No. 1-95, just like those of the quasi-judicial together to settle labor disputes.
agencies, boards and commissions enumerated therein.
This would be in furtherance of, and consistent with, the ARBITRATION process whereby an impartial third
original purpose of Circular No. 1-91 to provide a uniform party is either chosen by the parties themselves
procedure for the appellate review of adjudications of all quasi- (voluntary) or chosen for them (compulsory) to aid in the
settlement of the labor dispute.
judicial entities18 not expressly excepted from the coverage of Sec.
9 of B.P. 129 by either the Constitution or another statute.
Agencies involved:
In effect, this equates the award or decision of the voluntary
1) Conciliation Proceedings NCMB (Art. 212, c)
arbitrator with that of the regional trial court. Consequently, in a 2) Arbitration Proceedings
petition for certiorari from that award or decision, the Court of if compulsory, by Labor Arbiter (initiated by
Appeals must be deemed to have concurrent jurisdiction with the Sec. of Labor)
Supreme Court. As a matter of policy, this Court shall henceforth if voluntary, by a Voluntary Arbitrator (VA) or a
remand to the Court of Appeals petitions of this nature for proper panel of VAs
disposition.
Kinds of Conciliation meetings:
Unicraft Industries Intl v. CA (2001) 1) As part of the collective bargaining process (Art. 250)
Both parties acknowledge that the proceedings before the 2) As preventive mediation cases (IRR, Book V, Rule XXII,
Voluntary Arbitrator have not been completed. Sec. 1)
Despite this, the Court of Appeals rendered the assailed 3) As part of disputes involving notices of strike or lockout
resolution ordering the immediate execution of the (Art. 263, e)
award of separation pay and attorneys fees.
Kinds of Arbitration Proceedings:
Prior to that, Voluntary Arbitrator Calipay filed a 1) Compulsary (Art. 263, g) process of settlement of
comment contending that he had lost jurisdiction over labor disputes by a government agency which has the
the case after he rendered judgment. While under the authority to investigate and to make an award which is
law decisions of voluntary arbitrators are accorded binding on all the parties (PAL v. NLRC, 1989)
finality, the same may still be subject to review, such as 2) Voluntary (Art. 260) contractual proceedings where
here where there was a violation of petitioners right to the parties to a labor dispute select a judge (arbitrator) of
due process and to be heard. their own choice and by consent, submit their controversy
to him for determination.
Compulsary Arbitration:
1) Applies to labor disputes in industries indispensable to
national interest
2) Initiated by either the Secretary of Labor / the
President of the Philippines
3) Under the jurisdiction of Secretary of Labor / NLRC
(only if certified by the Secretary of Labor to NLRC)
NEW PROVISION
NEW PROVISION ART. 238-A. Effect of a
ART. 234-A. Chartering Petition for Cancellation of
and Creation of a Local Chapter. Registration. A petition for
A duly registered federation cancellation of union
or national union may directly registration shall not suspend
create a local chapter by issuing the proceedings for certification
days from election; consent of at least twenty-five before the Department of Labor
(c) Its annual financial percent (25%) of all the and Employment within the
report within thirty (30) employees in the bargaining sixty (60)-day period before the
days after the close of unit to ascertain the will of the expiration of the collective
every fiscal year; and employees in the appropriate bargaining agreement, the Med-
(d) Its list of members at bargaining unit. To have a valid Arbiter shall automatically order
least once a year or election, at least a majority of an election by secret ballot
whenever required by all eligible voters in the unit when the verified petition is
the Bureau. must have cast their votes. The supported by the written
labor union receiving the consent of at least twenty-five
Failure to comply with the above majority of the valid votes cast percent (25%) of all the
requirements shall not be a ground shall be certified as the employees in the bargaining
for cancellation of union exclusive bargaining agent of all unit to ascertain the will of the
registration but shall subject the the workers in the unit. When employees in the appropriate
erring officers or members to an election which provides for bargaining unit. To have a valid
suspension, expulsion from three or more choices results in election, at least a majority of
membership, or any appropriate no choice receiving a majority of all eligible voters in the unit
penalty. the valid votes cast, a run-off must have cast their votes. The
election shall be conducted labor union receiving the
Article 245 As amended between the labor unions majority of the valid votes cast
receiving the two highest shall be certified as the
Ineligibility of managerial Ineligibility of Managerial
number of votes: Provided, that exclusive bargaining agent of all
employees to join any labor Employees to Join any Labor the total number of votes for all the workers in the unit. When
organization; right of Organization; Right of contending unions is at least an election which provides for
Supervisory Employees. fifty percent (50%) of the three or more choices results in
Managerial employees are not number of votes cast. no choice receiving a majority of
eligible to join, assist or form Managerial employees are not the valid votes cast, a run-off
any labor organization. eligible to join, assist or form election shall be conducted
any labor organization. At the expiration of the freedom
Supervisory employees shall not period, the employer shall between the labor unions
be eligible for membership in a Supervisory employees shall not receiving the two highest
be eligible for membership in continue to recognize the
labor organization of the rank- majority status of the number of votes: Provided, That
and-file employees but may the collective bargaining unit of the total number of votes for all
the rank-and-file employees but incumbent bargaining agent
join, assist or form separate where no petition for contending unions is at least
labor organizations of their may join, assist or form separate fifty percent (50%) of the
collective bargaining units certification election is filed. (As
own. (As amended by Section amended by Section 23, number of votes cast. In cases
18, Republic Act No. 6715, and/or legitimate labor where the petition was filed by
organizations of their own. The Republic Act No. 6715, March
March 21, 1989) 21, 1989) a national union or federation,
rank and file union and the it shall not be required to
supervisors' union operating disclose the names of the local
within the same establishment chapter's officers and members.
may join the same federation or
national union. At the expiration of the freedom
period, the employer shall
NEW PROVISION continue to recognize the
ART. 245-A. Effect of majority status of the
Inclusion as Members of incumbent bargaining agent
Employees Outside the where no petition for
Bargaining Unit. The certification election is filed.
inclusion as union members of
employees outside the
bargaining unit shall not be a
ground for the cancellation of Article 257 As Amended
the registration of the union. Petitions in unorganized Petitions in Unorganized
Said employees are establishments. Establishments.
automatically deemed removed
from the list of membership of In any establishment where In any establishment where
said union. there is no certified bargaining there is no certified bargaining
agent, a certification election agent, a certification election
shall automatically be shall automatically be
Article 256 LC As amended conducted by the Med-Arbiter conducted by the Med-Arbiter
Representation issue in Representation Issue in upon the filing of a petition by a upon the filing of a petition by
organized establishments. Organized Establishments. legitimate labor organization. any legitimate labor
(As amended by Section 24, organization, including a
In organized establishments, Republic Act No. 6715, March national union or federation
In organized establishments, 21, 1989) which has already issued a
when a verified petition when a verified petition
questioning the majority status charter certificate to its
questioning the majority status local/chapter participating in
of the incumbent bargaining of the incumbent bargaining
agent is filed by any legitimate the certification election or a
agent is filed before the local/chapter which has been
Department of Labor and labor organization including a
national union or federation issued a charter certificate by
Employment within the sixty- the national union or
day period before the expiration which has already issued a
charter certificate to its local federation. In cases where the
of the collective bargaining petition was filed by a national
agreement, the Med-Arbiter chapter participating in the
certification election or a local union or federation, it shall not
shall automatically order an be required to disclose the
election by secret ballot when chapter which has been issued a
charter certificate by the names of the local chapter's
the verified petition is officers and members.
supported by the written national union or federation
Executive Clerk of the branches and all its personnel, branch shall be headed by an
Commission, shall have including the Labor Arbiters. Executive Labor Arbiter. (As
administrative supervision over amended by Section 6, Republic
the Commission and its regional The Commission, when sitting Act No. 6715, March 21, 1989)
branches and all its personnel, en banc, shall be assisted by
including the Executive Labor the same Executive Clerk, and,
Arbiters and Labor Arbiters. when acting thru its Divisions,
by said Executive Clerk for its
The Commission, when sitting first division and seven (7)
en banc shall be assisted by the other Deputy Executive Clerks
same Executive Clerk and, when for the second, third, fourth,
acting thru its Divisions, by said fifth, sixth, seventh and eighth
Executive Clerks for the second, Divisions, respectively, in the
third, fourth and fifth Divisions, performance of such similar or Article 215 As Amended
respectively, in the performance equivalent functions and duties Appointment and Appointment and
of such similar or equivalent as are discharged by the Clerk Qualifications. Qualifications.
functions and duties as are of Court and Deputy Clerks of
discharged by the Clerk of Court Court of the Court of Appeals. The Chairman and other
The Chairman and other
and Deputy Clerks of Court of Commissioners shall be Commissioners shall be
the Court of Appeals. (As The Commission and its eight members of the Philippine Bar
(8) divisions shall be assisted by members of the Philippine Bar
amended by Section 5, Republic and must have engaged in the and must have been engaged in
Act No. 6715, March 21, 1989) the Commission Attorneys in its the practice of law in the
appellate and adjudicatory practice of law in the Philippines
for at least fifteen (15) years, Philippines for at least fifteen
functions whose term shall be (15) years, with at least five (5)
coterminous with the with at least five (5) years
experience or exposure in the years experience or exposure in
Commissioners with whom they the field of labor-management
are assigned. The Commission field of labor-management
relations, and shall preferably relations, and shall preferably
Attorneys shall be members of be residents of the region
the Philippine Bar with at least be residents of the region
where they are to hold office. where they shall hold office.
one (1) year experience or The Labor Arbiters shall likewise
exposure in the field of labor- The Executive Labor Arbiters
and Labor Arbiters shall likewise be members of the Philippine
management relations. They Bar and must have been
shall receive annual salaries and be members of the Philippine
Bar and must have been engaged in the practice of law in
shall be entitled to the same the Philippines for at least ten
allowances and benefits as engaged in the practice of law in
the Philippines for at least seven (10) years, with at least five (5)
those falling under Salary Grade years experience or exposure in
twenty-six (SG 26). There shall (7) years, with at least three (3)
years experience or exposure in the field of labor-management
be as many Commission relations.
Attorneys as may be necessary the field of labor-management
for the effective and efficient relations: Provided, However,
that incumbent Executive Labor The Chairman, the other
operation of the Commission Commissioners and the Labor
but in no case more than three Arbiters and Labor Arbiters who
have been engaged in the Arbiters shall hold office during
(3) assigned to the Office of the good behavior until they reach
Chairman and each practice of law for at least five
(5) years may be considered as the age of sixty-five (65) years,
Commissioner. unless sooner removed for
already qualified for purposes of
reappointment as such under cause as provided by law or
No Labor Arbiter shall be become incapacitated to
assigned to perform the this Act. The Chairman and the
other Commissioners, the discharge the duties of their
functions of the Commission office: Provided, however, That
Attorney nor detailed to the Executive Labor Arbiters and
Labor Arbiters shall hold office the President of the Republic of
office of any Commissioner." the Philippines may extend the
during good behavior until they
reach the age of sixty-five years, services of the Commissioners
unless sooner removed for and Labor Arbiters up to the
Article 214 cause as provided by law or maximum age of seventy (70)
As Amended become incapacitated to years upon the
discharge the duties of their recommendation of the
Headquarters, Branches and Headquarters, Branches and Commission en banc.
Provincial Extension Units. Provincial Extension Units. office.
Subject Committee Res Rosario * Mike Rivera *Grace Pastorfide * Suzy Ojeda
Information Management Chino Baybay [Head] * Simoun Salinas [Deputy] * Rania Joya
Committee [Design & Lay-out] * Ludee Pulido [Documentations]