TABLE OF CONTENTS
No strike-no lockout clause ................... 30
LABOR RELATIONS
I. LABOR RELATIONS ..................................... 1
A. RIGHT TO SELF-ORGANIZATION .......... 1
BASES OF RIGHT ................................. 1
(1) 1987 Constitution ............................................1
(2) Labor Code ......................................................1
(3) International Conventions...............................1
EXTENT AND SCOPE OF RIGHT ................. 1
A.1. WHO MAY EXERCISE THE RIGHT .......... 2
1. All employees .....................................................2
2. Employees of government corporations .....2
3. Supervisors..........................................................2
4. Aliens ....................................................................2
5. Security Guards .......................................................2
Who cannot form, join or assist labor organizations..3
A.2. Commingling/Mixture of Membership ... 4
GOVERNMENT REGULATION OF UNIONS ...................5
A.3. Rights and Conditions of Membership ... 7
ART 241. RIGHTS AND CONDITIONS OF MEMBERSHIP
IN A LABOR ORGANIZATION .......................................7
RIGHTS OF LEGITIMATE LABOR ORGANIZATION (ART
251, LC)........................................................................8
Union-member relations are governed by ..................9
LABOR RELATIONS IN PUBLIC SECTOR ........................9
Right To Organize ............................... 9
1. Constitution .............................................................9
2. Labor Code ..............................................................9
3. Statutory ...............................................................10
4. International Treaties............................................10
Officers With Right to Self-Organize .........................10
Protection Of Right ........................... 11
1. Non-discrimination ................................................11
2. Non-interference in Union Administration............11
Registration .................................... 11
Registration Agency ..................................................11
Effect Of Registration ................................................11
Bargaining Unit, Composition ...................................11
Exclusive Representative ...........................................11
Settlement Of Work Conditions ................................ 12
Affiliation and disaffiliation of the local union from
the mother union ......................................................12
A.3.A NATURE OF RELATIONSHIP..............................12
B. BARGAINING UNIT ........................ 14
C. BARGAINING REPRESENTATIVE ......... 14
C.1. DETERMINATION OF REPRESENTATION
STATUS.......................................... 14
Factors.......................................................................14
Methods of Establishing Majority Status ..................15
D. RIGHTS OF LABOR ORGANIZATION .... 21
D.1. CHECK OFF, ASSESSMENT, AGENCY FEES
................................................... 21
Union dues and special assessments ........................21
D.2. COLLECTIVE BARGAINING ............... 22
D.2. A. DUTY TO BARGAIN COLLECTIVELY .................22
D.2.B. Collective bargaining agreement (CBA) .........23
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Check-off ........................................ 31
E. UNFAIR LABOR PRACTICE ................31
E.1. NATURE, ASPECTS ........................ 31
Definition and General Concept ............................... 31
Requisites of ULP ...................................................... 32
General Prohibition ............................ 32
E.2. ULP by Employers......................... 33
1. Interference, restraint and coercion ..................... 33
2. YELLOW-DOG CONTRACT ..................................... 34
3. Contracting out to discourage unionism .............. 34
4. Company domination of union ............................. 34
5. DISCRIMINATION TO ENCOURAGE/DISCOURAGE
UNIONISM ................................................................ 34
6. Retaliation testimony against employer/indirect
discrimination ........................................................... 35
7. Violation of duty to bargain ................................. 35
8. Negotiation or attorneys fees .............................. 35
9. Gross violation of CBA .......................................... 35
E. 3. BY LABOR ORGANIZATIONS ............. 35
1. RESTRAINT, OR COERCION ................................... 35
2. DISCRIMINATION: ENCOURAGE/ DISCOURAGE
UNIONISM [ART. 260 (B)] ......................................... 35
3. VIOLATE DUTY TO BARGAIN OR THE CBA ............ 35
4. FEATHERBEDDING ................................................ 35
5. ASKING OR ACCEPTING NEGOTIATION AND OTHER
ATTORNEY'S FEES ..................................................... 36
6. VIOLATE A COLLECTIVE BARGAINING AGREEMENT
.................................................................................. 36
MOTIVE, CONDUCT, AND PROOF ............. 36
ENFORCEMENT, REMEDIES AND SANCTIONS . 36
F. PEACEFUL CONCERTED ACTIVITIES .....37
RIGHT TO PEACEFUL CONCERTED ACTIVITIES
................................................... 37
BASES OF RIGHT TO ENGAGE IN CONCERTED
ACTIVITIES................................................................. 37
Role of Peace Officers During Strikes and Picketing. 38
FORMS OF CONCERTED ACTIVITIES ........... 38
F.1. BY LABOR ORGANIZATION ............... 38
F.1.A. STRIKE ............................................................. 38
Illegal strike .............................................................. 42
F.2. PICKET ..................................... 45
Slowdown ................................................................. 45
F.3. BY EMPLOYER ............................. 45
F.2.A. LOCKOUT ........................................................ 45
F.4. ASSUMPTION OF JURISDICTION .......... 47
II. Jurisdiction and Remedies............................... 50
A. Labor arbiter ..............................50
A.1. Jurisdiction ............................ 50
Labor Arbiter vs. Regional Director .......................... 50
A.2. Requirements to perfect appeal to NLRC
................................................... 50
A.3. Reinstatement pending appeal ......... 51
B. National Labor Relations Commission
(NLRC) ..........................................51
B.1. Jurisdiction ................................ 51
 TABLE OF CONTENTS
C. Court of Appeals ......................... 51
C.1. Appeal via rule 65, Rules of Court .... 51
D. SUPREME COURT ......................... 51
D.1. RULE 45, RULES OF COURT ............. 51
E. BUREAU OF LABOR RELATIONS (BLR).. 52
E.1. JURISDICTION ............................. 52
F. NATIONAL CONCILIATION AND
MEDIATION BOARD ........................... 52
F.1. CONCILIATION vs. MEDIATION .......... 52
F.2. PREVENTIVE MEDIATION ................. 52
G. DOLE REGIONAL DIRECTORS ............ 52
G.1. RECOVERY/ADJUDICATORY POWER ... 52
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H. DOLE SECRETARY .........................53
H.1. VISITORIAL AND ENFORCEMENT POWERS
................................................... 53
H.2. POWER TO SUSPEND EFFECTS OF
TERMINATION ................................... 53
H.3. REMEDIES .................................. 54
I. VOLUNTARY ARBITRATOR.................54
I.1. JURISDICTION .............................. 54
I.2. Remedy ..................................... 54
J. Prescription of Actions ...................54
 LABOR RELATIONS
I. LABOR RELATIONS
Labor Relations
Labor Relations, defined.
The interactions between employer and employees
or their representatives and the mechanism by which
the standards and other terms and conditions of
employment are negotiated, adjusted and enforced.1
A. RIGHT TO SELF-ORGANIZATION
BASES OF RIGHT
(1) 1987 CONSTITUTION
RIGHT TO ASSOCIATION
Sec 8, Art III, 1987 Constitution
The right of the people, including those employed in
the public and private sectors, to form unions,
associations, or societies for purposes not contrary
to law shall not be abridged.
RIGHT OF ALL WORKERS TO SELF-ORGANIZATION
Sec. 3, par 2, Art XIII, 1987 Constitution
The state shall afford full protection to labor, local
and overseas, organized and unorganized, and
promote full employment opportunities for all. It
shall guarantee the rights of all workers to self-
organization, collective bargaining and negotiations,
and peaceful concerted activities, including the right
to strike in accordance with law. Xxx
(2) LABOR CODE
Art 253: Coverage and employees’ right to self-
organization
All persons employed in commercial, industrial and
agricultural enterprises and in religious, charitable,
medical, or educational institutions, whether
operating for profit or not, shall have the right to
self-organization and to form, join, or assist labor
organizations of their own choosing for purposes of
collective bargaining.
Ambulant, intermittent and itinerant workers, self-
employed people, rural workers and those without
any definite employers may form labor organizations
for their mutual aid and protection.
Art 254: Coverage and employees’ right to self-
organization
Employees of government corporations established
under the corporation code shall have the right to
organize and to bargain collectively with their
respective employers.
RIGHT TO ORGANIZE
It is the right of workers to form, join, or assist a
labor organization and is granted to all kinds of
employees (public or private) of all kinds of
employers (profit or non-profit).
1C.A. Azucena, The Labor Code with Comments and Cases, Volume
II, 2010, p.10.
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Note: In general, workers without definite employers
may also form labor organizations for their mutual
aid and protection. The usual purpose of organizing,
however, is for collective bargaining.
(3) INTERNATIONAL CONVENTIONS
✓ Core conventions of the International Labor
Organization (ILO):
✓ ILO Convention No. 87 – Freedom of
Association and Protection of Right to
Organize
✓ ILO Convention No. 98 – Application of the
Principles of the Right to Organize and
Bargain Collectively
NON-ABRIDGMENT OF THE RIGHT TO SELF-
ORGANIZATION
Bar 2000
Art 257
It shall be unlawful for any person to restrain,
coerce, discriminate against or unduly interfere with
employees and workers in their exercise of the right
to self-organization.
EXTENT AND SCOPE OF RIGHT
(1) Right to form, join, or assist labor organizations
for the purpose of collective bargaining through
representatives of their own choosing. 2
(2) Right to engage in lawful concerted activities
for the same purpose for their mutual aid and
protection.3
(3) Subsumed in the right to join, affiliate with, or
assist any union is the right NOT to join, affiliate
with, or assist any union; or to leave a union and
join another one. [Heritage Hotel Manila v.
PIGLAS- Heritage, G.R. No. 177024 (2009)]
(4) The right to form or join a labor organization
necessarily includes the right to refuse or refrain
from exercising said right. It is self-evident that
just as no one should be denied the exercise of a
right granted by law, so also, no one should be
compelled to exercise such a conferred right.4
(5) Right to organize regardless of religious
affiliations. This Court's decision in Victoriano
v.s. Elizalde Rope Workers' Union, upholding the
right of members of the IGLESIA NI KRISTO sect
not to join a labor union for being contrary to
their religious beliefs, does not bar the members
of that sect from forming their own union.
(6) Right of workers to choose their leader. Their
freedom organizations would be rendered
nugatory if they could not choose their own
leaders to speak on their behalf and to bargain
for them. [Pan-American World Airways, Inc v.
Pan- American Employees Association, G.R. No.
L-25094 (1969)]
2 Art. 257, Labor Code
3 Art. 257 Labor Code
4Reyes v Trajano, 209 SCRA 484 (1992).
 LABOR RELATIONS
A.1. WHO MAY EXERCISE THE RIGHT
(1) All employees
(2) Government employees of corporations created
under the Corporation Code
(3) Supervisory Employees
(4) Aliens with valid working permits
(5) Security personnel
1. ALL EMPLOYEES
Any person in the employ of an employer. The term
shall not be limited to the employees of a particular
employer, unless the Code so explicitly states. It
shall include any individual whose work has ceased
as a result of or in connection with any current labor
dispute or because of any unfair labor practice if he
has not obtained any other substantially equivalent
and regular employment.5
WHO IS AN EMPLOYEE FOR PURPOSES OF
MEMBERSHIP IN ANY LABOR UNION?
Art 292(c)
Any employee, whether employed for a definite
period or not, shall, beginning on his first day of
service, be considered as an employee for purposes
of membership in any labor union.
2. EMPLOYEES OF GOVERNMENT CORPORATIONS
Bar 2004
Art 254: Right of employees in the public service
Employees of government corporations established
under the Corporation Code shall have the right to
organize and to bargain collectively with their
respective employers. All other employees in the
civil service shall have the right to form associations
for purposes not contrary to law.
RIGHT OF EMPLOYEES IN PUBLIC SERVICE
A. Employees of government corporations established
under the Corporation law:
• Right to organize
• Right to bargain collectively
B. All other employees in the civil service:
Right to form associations for purposes not contrary
to law
3. SUPERVISORS
Bar 1995, 1996, 1999, 2002, 2003
Art 219(m)
Supervisory employees are those who, in the interest
of the employer, effectively recommend such
managerial actions if the exercise of such authority
is not merely routinary or clerical in nature but
requires the use of independent judgment.
IR, Book V, Rule I, Sec. 1(xx)
5 Art 219(f)
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Supervisory employee refers to an employee who, in
the interest of the employer, effectively
recommends managerial actions and the exercise of
such authority is not routinary or clerical but
requires the use of independent judgment.
Art 255
XXX Supervisory employees shall not be eligible for
membership in a labor organization of the rank-and-
file employees but may join, assist or form separate
labor organizations of their own. XXX
Supervisory employees may join, assist or form
separate labor organizations of their own.
Supervisory employees not eligible to join rank-and-
file labor organization.
There may arise conflict of interests with rank-and-
file employees in so far as supervisory employees are
considered extension of management.
Test of supervisory status. The test of "supervisory"
or "managerial status" depends on whether a person
possesses authority to act in the interest of his
employer in the matter specified in Article 212 (k) of
the Labor Code and Section 1 (m) of its
Implementing Rules [now Section 1(t)] and whether
such authority is not merely routinary or clerical in
nature, but requires the use of independent
judgment. Thus, where such recommendatory
powers as in the case at bar, are subject to
evaluation, review and final action by the
department heads and other higher executives of the
company, the same, although present, are not
effective and not an exercise of independent
judgment as required by law.6
4. ALIENS
GR: All aliens, natural or juridical, as well as foreign
organizations are strictly prohibited from engaging
directly or indirectly in all forms of trade union
activities without prejudice to normal contacts
between Philippine labor unions and recognized
international labor centers.
XPN: Aliens working in the country can exercise right
to self-organization if: (VR)
(a) With valid permits issued by the Department of
Labor and Employment, and
(b) Reciprocity -said aliens are nationals of a
country which grants the same or similar rights
to Filipino workers.7
5. SECURITY GUARDS
The security guards and other personnel employed
by the security service contractor shall have the
right:
6Franklin Baker Company v Trajano, G.R. No. 75039 (1988).
(More recent citation: Cathay Pacific Steel Corporation vs. CA, G.R.
No. 164561, Aug. 30, 2006)
7 Art 284
 LABOR RELATIONS
(1) To form, join, or assist in the formation of a
labor organization of their own choosing for
purposes of collective bargaining and
(2) To engage in concerned activities which are not
contrary to law including the right to strike.
[D.O. No. 14 Series of 2001 Guidelines Governing
the Employment and Working Conditions of
Security Guards and Similar Personnel in the
Private Security Industry)
WHO CANNOT FORM, JOIN OR ASSIST
LABOR ORGANIZATIONS
(1) Managerial employees
(2) Confidential employees
(3) Member-employee of a cooperative
(4) Employees of international organizations
(5) Non-employees
(6) Members of the AFP, police officers, policemen,
firemen and jail guards
(7) High-level / Managerial Government Employees
1. MANAGERIAL EMPLOYEES
Bar 1995, 1996, 1999, 2002, 2003
Art 219(m)
"Managerial employee" is one who is vested with the
powers or prerogatives to lay down and execute
management policies and/or to hire, transfer,
suspend, lay-off, recall, discharge, assign or
discipline employees.
Art 245, Labor Code
Managerial employees are not eligible to join, assist
or form any labor organization. xxx
Rationale for prohibition
Because if these managerial employees would belong
to or be affiliated with a Union, the latter might not
be assured of their loyalty to the Union in view of
evident conflict of interests. The Union can also
become company- dominated with the presence of
managerial employees in Union membership.8
Managerial functions refer to powers such as to:
(1) Effectively recommend managerial actions;
(2) Formulate or execute management policies or
decisions; or
(3) Hire, transfer suspend, lay-off, recall, dismiss,
assign or discipline employees. (San Miguel
Supervisors and Exempt Union v Laguesma,
1997)
2. CONFIDENTIAL EMPLOYEES
Bar 1994, 2002, 2009
Who are confidential employees?
Those who by reason of their positions or nature of
work are required to assist or act in a fiduciary
manner to managerial employees and hence, are
likewise privy to sensitive and highly confidential
8BulletinPublishing Corp. v Hon. Augusto Sanchez, et al., G.R. No.
74425 (1986).
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records.xxx By the very nature of their functions,
they assist and act in a confidential capacity to, or
have access to confidential matters of, persons who
exercise managerial functions in the field of labor
relations. 9
Rationale for exclusion
By the very nature of their functions, they assist and
act in a confidential capacity to, or have access to
confidential matters of, persons who exercise
managerial functions in the field of labor relations.
As such, the rationale behind the ineligibility of
managerial employees to form, assist or join a labor
union equally applies to them.10
CONFIDENTIAL EMPLOYEE RULE;
Test in determining a confidential employee: The
confidentiality of the position should relate to labor
relations matters.
Criteria: Assists or acts in a confidential capacity,
To persons who formulate, determine and effectuate
management policies in the field of labor relations.
These two criteria are cumulative.11
NATURE OF ACCESS TEST
An important element of the “confidential employee
rule” is the employee’s need to use labor relations
information. Thus, in determining the confidentiality
of certain employees, a key question frequently
considered is the employees’ necessary access to
confidential labor relations information. If access to
confidential labor relations information is to be a
factor in the determination of an employee’s
confidential status, such information must relate to
the employer’s labor relations policies.12
FUNCTION TEST: NOMENCLATURE IS NOT
CONTROLLING
The mere fact that an employee is designated
“manager” does not ipso facto make him one.
Designation should be reconciled with the actual job
description of the employee. [Paper Industries Corp.
of the Philippines. v. Laguesma, G. R. No.101738,
2000]
DOCTRINE OF NECESSARY IMPLICATION
While Art 245 of the LC singles out managerial
employees as ineligible to join, assist, or form nay
labor organization, under the doctrine of necessary
implication, confidential employees are similarly
disqualified”13
9Metrolab Industries v Confessor, et al., G.R. No. 108855 (1996).
10PhilipsIndustrial Dev’t., Inc., v NLRC, 210 SCRA 339 (1992)
11TunaynaPagkakaisangManggagawang Asia Brewery v Asia Brewery,
Inc., G.R. No. 162025 (2012).
12San Miguel Corporation Supervisors and Exempt Union, et al. v
Hon. Laguesma, et al., G.R. No. 110399 (1997)
13 NATU v. Torres, G.R. 93468 December 29, 1994.
 LABOR RELATIONS
Art 245 does not directly prohibit confidential
employees from engaging in union activities.
However, under the doctrine of necessary
implication, such confidential employees, if they
have access to confidential labor relations
information, are treated like managers and
therefore cannot unionize. Thus, when a confidential
employee does not have access to labor relations
information, such employee may still form, join or
assist a union.14
3. WORKERS-MEMBERS OF A COOPERATIVE
Bar 2002
Rationale: A cooperative is by its nature different
from an ordinary business concern being run either
by persons, partnerships, or corporations. Its owners
and/or members are the ones who run and operate
the business while the others are its employees.15
An employee… of such a cooperative who is a
member and co-owner thereof cannot invoke the
right to collective bargaining for certainly an owner
cannot bargain with himself or his co-owners.16
May form association
While the members of a cooperative who are also its
employees cannot unionize for purposes of collective
bargaining, the law does not prohibit them from
forming an association for their mutual aid and
protection.
4. EMPLOYEES OF INTERNATIONAL
ORGANIZATIONS
A certification election cannot be conducted in an
international organization which the philippine
government has granted immunity from local
jurisdiction.
International organization, defined.
The term is generally used to describe an
organization set up by agreement between two or
more states. … Such organizations are endowed with
some degree of international legal personality such
that they are capable of exercising specific rights,
duties and powers.
Reason for grant of immunity
The assurance of unimpeded performance of their
functions by the agencies concerned.
No deprivation of labor’s basic rights
The immunity of international organizations from
local jurisdiction by no means deprives labor of its
basic rights which are guaranteed by Article II,
Section 18, Article III, Section 8 and Article XIII,
Section 3 of the 1987 Constitution; and implemented
by Articles 243 and 246 of the Labor Code.
14 Sugbuanon Rural Bank v. Laguesma, G.R. 116194 (2000).
15Batangas Electric Cooperative v Young, G.R. No. 62386 (1988).
16 Supra note 10.
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Certification election barred by immunity
A certification cannot be viewed as an independent
or isolated process. It could trigger off a series of
events in the collective bargaining process together
with related incidents and/or concerted activities,
which could inevitably involve ICMC in the “legal
process”, which includes “any penal, civil, and
administrative proceedings.” The eventuality of
court litigation is neither remote and from which
international organizations are precisely shielded to
safeguard them from the disruption of their
functions.
Waiver of immunity
Waiver of immunity is discretionary. Without such
express waiver, the NLRC or its labor arbiters have
no jurisdiction even in cases of alleged illegal
dismissal of any of its employees.17
5. NON-EMPLOYEES
Persons who are not employees of a company are not
entitled to the constitutional right to join or form a
labor organization for purposes of collective
bargaining. The question of whether employer-
employee relationship exists is a primordial
consideration before extending labor benefits under
the workmen's compensation, social security,
Medicare, termination pay and labor relations
law.[Singer Sewing Machine Co. v. Drilon, G.R. No.
91307, 1991]
6. MEMBERS OF THE AFP, POLICEMEN, POLICE
OFFICERS, FIREMEN AND JAILGUARDS
Members of the AFP, Policemen, Police Officers,
Firemen and Jailguards are expressly excluded by EO
180 from the coverage of the law which provides
guidelines for the exercise of the right to organize of
government employees.
7. HIGH-LEVEL / MANAGERIAL GOVERNMENT
EMPLOYEES
High-level employees of the government whose
functions are normally considered as policy-making
or managerial or whose duties are of a highly
confidential nature shall not be eligible to join the
organization of rank- and-file government
employees. [Sec. 3, E.O. 180]
A.2. COMMINGLING/MIXTURE OF MEMBERSHIP
Bar 2010
Art 256
The inclusion as union members of employees
outside the bargaining unit shall not be a ground for
the cancellation of the registration of the union.
Said employees are automatically deemed removed
from the list of the members of the union.
17Callado v International Rice Research Institute, G.R. No. 106483
(1995)
 LABOR RELATIONS
Comingling in union membership
The mixture of rank-and-file and supervisory
employees in union does not nullify its legal
personality as a legitimate labor organization.18 As
stated in Article 256 (251-A), the employees that
should not have been included in the membership
are automatically deemed removed from the list of
membership.
LABOR ORGANIZATION, policy
Art 218 (a), (b), (g)
It is the policy of the State:
To promote and emphasize the primacy of free
collective bargaining and negotiations, including
voluntary arbitration, mediation and conciliation, as
modes of settling labor or industrial disputes;
To promote free trade unionism as an instrument for
the enhancement of democracy and the promotion
of social justice and development;
xxx
(g) To ensure the participation of workers in decision
and policy-making processes affecting their rights,
duties and welfare.
LABOR ORGANIZATION, DEFINED
Any union or association of employees which exists in
whole or in part for the purpose of collective
bargaining or of dealing with employers concerning
terms and conditions of employment.19
Any union or association of employees in the private
sector which exists in whole or in part for the
purpose of collective bargaining, mutual aid,
interest, cooperation, protection or other lawful
purposes.20
UNION, DEFINED
Any labor organization in the private sector
organized for collective bargaining and for other
legitimate purposes21
WORKERS' ASSOCIATION, DEFINED
An association of all workers organized for mutual
aid and protection of its members or for an
legitimate purpose other than collective bargaining22
LEGITIMATE LABOR ORGANIZATION, DEFINED
Any labor organization duly registered with the
Department of Labor and Employment, and includes
any branch or local thereof23
Any labor organization in the private sector
registered or reported with the Department in
accordance with Rules III and IV of these Rules24
18SMCC-SUPER v Charter Chemical and Coating Corp., G.R. No.
169717 (2011)
19 Art. 219(g)
20 IR, Book V, Rule I, Sec. 1(cc)
21 IR, Book V, Rule I, Sec. 1(zz)
22 IR, Book V, Rule I, Sec. 1(ccc)
23 Art 219(h)
24 IR, Book V, Rule I, Sec. 1(ee)
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LEGITIMATE WORKERS' ASSOCIATION, DEFINED
An association of workers organized for mutual aid
and protection of its members or of any legitimate
purposes other than collective bargaining registered
with the Department25
COMPANY UNION, DEFINED
Any labor organization whose formation, function or
administration has been assisted by any act defined
as unfair labor practice by this Code26
Art 259(d), Creation of company union is ULP
To initiate, dominate, assist or otherwise interfere
with the formation or administration of any labor
organization, including the giving of financial or
other support to it or its organizers or supporters.
UNION RATIONALE
A labor union, (the means of assuring that such
fundamental objectives would be achieved) is the
instrumentality through which an individual
labourer who is helpless as against a powerful
employer, may through concerted effort and
activity, achieve the goal of economic well-being.27
GOVERNMENT REGULATION OF UNIONS
UNION REGISTRATION, DEFINED.
IR, Book V, Rule I, Sec. 1 (qq)
Process of determining whether the application for
registration of a union or worker’s association and
collective bargaining agreement complies with the
documentary requirements for registration
prescribed in Rules III, IV and XVII.
Registration is basically compliance with
documentary requirements.
Bar 2010
Requirements (Art 240, LC): Application form
(1) Registration fee: fifty pesos (P50.00)
(2) Officers' names and addresses, principal address
of the labor organization, minutes of the
organizational meetings and the list of workers
who participated in such meetings
(3) Names of all its members comprising at least
twenty percent (20%) of all employees in the
bargaining unit where it seeks to operate (As
amended by EO No. 111, December 24, 1986)
(4) Copies of its annual financial report; if applicant
union has been in existence for one or more
years
(5) Four (4) copies of the constitution and by-laws
of the applicant union, minutes of its adoption
or ratification, and the list of the members who
participated in it
(6) Statement that it is not reported as a local
25IR, Book V, Rule I, Sec. 1(ff)
26Art 218(i)
27Guijarno v. CIR,G.R.Nos.28791-93 (1973).
 LABOR RELATIONS
chapter or union
FEDERATIONS OR NATIONAL UNIONS ADDITIONAL
REQUIREMENTS
(1) Proof of affiliation of at least ten (10) locals or
chapters, each of which must be a duly
recognized collective bargaining agent in the
establishment or industry in which it operates,
supporting the registration of such applicant
federation or national union
(2) Names and addresses of the companies where
the locals or chapters operate and the list of all
the members in each company involved.
(3) Registration requirement for reporting a local
chapter
(4) Charter certificate Issued by the national
federation or union and is all that is needed in
filing for a petition for certification election.
Minimal requirement for local or chapter
The law gives this incentive as it favors the creation
of chapters/locals than independent labor
organizations.
Where to file application for registration
1. For ILO, Chartered Locals, Workers Association:
DOLE Regional Office where the labor organization
operates
2. For federations or national unions: Directly with
the BLR or through DOLE Regional Office which will
forward the application to the BLR
ACTION ON APPLICATION
Art 242
The Bureau shall act on all applications for
registration within thirty (30) days from filing.
All requisite documents and papers shall be certified
under oath by the secretary or the treasurer of the
organization, as the case may be, and attested to by
its president.
IR, Book V, Rule IV, Sec. 4
The Regional Office or the Bureau, as the case may
be, shall act on applications for registration or
notice of change of name, affiliation, merger and
consolidation within one (1) day from receipt
thereof, either by:
approving the application and issuing the certificate
of registration/acknowledging the notice/report; or
denying the application/notice for failure of the
applicant to comply with the requirements for
registration/notice.
(As amended by Dept. Order No. 40-D-05, series of
2005
DENIAL OF REGISTRATION, APPEAL.
Art 243
LA SALLIAN COMMISION ON BAR OPERATIONS
6 LABOR LAW
The decision of the Labor Relations Division in the
regional office denying registration may be appealed
by the applicant union to the Bureau within ten (10)
days from receipt of notice thereof.
IR, Book V, Rule IV, Sec. 5-7
Sec. 5:
Grounds for denial:
(1) supporting documents are incomplete
(2) supporting documents do not contain the
required certification and attestation
Periods:
(1) Notify the applicant within one (1) day from
receipt of application/notice
(2) Give applicant thirty (30) days from receipt of
notice to complete the necessary requirements;
upon prescription of this period, such
application will be denied, or the notice will be
returned, without prejudice to the filing of a
new application or notice
Sec. 6:
Form of denial:
In writing, stating in clear terms the reasons for
denial or return
Period for appeal:
Within ten (10) days from receipt of notice
to the Bureau if denied by the Regional Office
to the Secretary if denied by the Bureau
Grounds for appeal:
Grave abuse of discretion
Procedure on appeal:
(1) File a memorandum of appeal with the Regional
Office or the Bureau that issued the
denial/return of notice
(2) The memorandum, together with the complete
records of the application/notice shall be
transmitted by the Regional Office to the
Bureau, or by the Bureau to the Office of the
Secretary, within twenty-four (24) hours from
receipt of the memorandum of appeal
(3) The Bureau or the Office of the Secretary shall
decide the appeal within twenty (20) days from
receipt of the records of the case
EFFECT OF REGISTRATION
Bar 2003
IR, Book V, Rule IV, Sec. 8
The labor union or workers’ association shall be
deemed registered and vested with legal personality
on the date of issuance of its certificate of
registration or certificate of creation of charted
local.
Such legal personality may be questioned only
 LABOR RELATIONS
through an independent petition for cancellation of
union registration xxx.
Registration legitimizes the LO.
(1) It grants the union the status of legitimacy of a
labor organization;
(2) Results in the acquisition of legal personality;
and
(3) It becomes entitled to all rights and privileges
granted by law to legitimate labor
organizations.
Union personality not subject to collateral attack
The principle that once a union acquires a legitimate
status as a labor organization, it continues as such
until its certificate of registration is cancelled or
revoked in an independent action for cancellation.28
ACQUISITION OF LEGAL PERSONALITY
IR, Book V, Rule III, Sec. 2 (E)
For local chapter: only for purposes of filing a
petition for certification election from the date it
was issued a charter certificate.
The report creation of a chartered local shall be
accompanied by a charter certificate issued by the
federation or national union indicating the creation
of establishment of the chartered local
A.3. RIGHTS AND CONDITIONS OF MEMBERSHIP
ART 241. RIGHTS AND CONDITIONS
OF MEMBERSHIP IN A LABOR
ORGANIZATION
(a) No arbitrary or excessive initiation fees, fines
and forfeitures
(b) Members entitled to full and detailed reports of
financial transactions as provided for in
Constitution/By-Laws
(c) Members directly elect their officers by secret
ballot (including the officers of the national
union/federation, trade center or to any similar
affiliate) every 5 years
✓ Qualification: membership in good standing
and must be employed in the company
✓ Report: Labor Sec to be furnished with a
list of newly elected officers, appointive
officers/agents who handle funds within 30
days 1) after election or 2) from occurrence
of any change in the list of officers
(d) Members determine by secret ballot any
question of major policy affecting the entire
membership of the organization.
Exception: secret balloting not required if :
(i) nature of organization
(ii) force majeure renders such balloting
impractical → in this case, the board of
28Legend
International v. Kilusang Manggagawa ngLegenda, G.R. No.
169754 (2011).
LA SALLIAN COMMISION ON BAR OPERATIONS
7 LABOR LAW
directors of the organization may make
the decision in behalf of the general
membership
(e) LO cannot knowingly admit a member or
continue in membership any individual who
belongs to a 1) subversive organization or 2) who
is engaged directly or indirectly in any
subversive activity
(f) Person convicted of crime of moral turpitude
shall not be 1) eligible for election as union
officer or 2) for appointment to any position in
the union
(g) Fees, dues or other contribution for the
organization shall only be collected by one who
is authorized to do so pursuant to the
organization’s constitution and by-laws
(h) Every payment of fees, dues or other
contributions shall be evidenced by a receipt
and entered into the record of the organization
(i) Funds of organization shall not be applied to for
any other purpose or object other than those
expressly provided for by its 1) constitution and
by-laws or those 2) expressly authorized by
written resolution adopted by the majority of
the members at a general meeting duly called
for that purpose.
(j) Every income and revenue shall be evidenced by
a record showing its source and every expense
shall be evidenced by a receipt from the person
to whom payment is made. The record or
receipt forms part of the financial records of the
organization
✓ Any action involving the funds of the
organization shall prescribe after 3 years
from 1) the date of submission of the
annual financial reports to the DOLE or 2)
from the date it should’ve been submitted
as required by law, whichever comes
earlier
Provided: this provision applies only to a
legitimate labor organization which has
submitted the financial report requirements
(k) Officers shall not be paid any compensation
other than the salaries/expenses due to their
positions 1) as provided by its constitution and
by laws or 2) in a written resolution duly
authorized by the majority of all the members
at a general membership meeting duly called
for that person
(l) Treasurer/any person responsible for the funds
or other property shall render an accounting to
its members and the organization of all the
money received and paid by him since the last
day on which he rendered such account.
✓ Rendering of account shall be made
(1) At least once a year within 30 days
from the close of its fiscal year
(2) At such other times as may be required
by resolution of the majority of the
members
(3) Upon vacating his office
 LABOR RELATIONS
(m) Books of accounts and other records of the
financial activities shall be open to inspection by
any officer/member during office hours
(n) No special assessment/extraordinary fees may
be levied unless authorized by a written
resolution of a majority of all the members at a
general membership meeting duly called for
that purpose
✓ The secretary shall record the minutes of
the meeting including the list of all
members present, the votes cast, the
purpose of the special assessment and the
recipient of such assessment.
✓ This record shall be attested by the
President
(o) Other than for mandatory activities under this
code, no special assessments, attorney’s fees,
negotiation fees may be checked off from any
amount due to an employee without his signed
individual written authorization
(p) Duty of LO and its officers: inform its members
of C/BL, CBA, Labor relations system and their
rights and obligations
✓ For this purpose, registered labor
organizations may assess reasonable dues to
finance labor relations seminars and other
labor education activities
Any violation of the above rights and conditions of
membership shall be a ground for:
(1) cancellation of union registration or
(2) expulsion of officer from office.
At least 30% of all members of the union or any
member or members specially concerned (if violation
directly affects the) may report such violation to
the Bureau
The Bureau shall have the power to hear and decide
any reported violation to mete the appropriate
penalty.
Summary of rights and conditions
(1) Political Right (to vote, be voted for)
(2) Deliberative and Decision Making (vote on policy
issues)
(3) Rights over money matters
(4) Right to Information
RIGHTS OF LEGITIMATE LABOR
ORGANIZATION (ART 251, LC)
(1) Right to act as the representative of its
members in the collective bargaining
(2) Right to be certified as the exclusive
representative of all the employees in an
appropriate bargaining unit
(3) Right to be furnished by the employer, upon
written request, with its annual audited
financial statements within thirty (30) calendar
days from the date of receipt of the request, or
within sixty (60) days before the expiration of
LA SALLIAN COMMISION ON BAR OPERATIONS
8 LABOR LAW
the existing collective bargaining agreement, or
during the collective bargaining negotiation
(4) Right to own property, real or personal
(5) Right to sue and be sued in its registered name
(6) Right to undertake all other activities not
contrary to law for the benefit of the
organization and its members
RULE ON INTERVENTION
A labor union is one such party authorized to
represent its members. This authority includes the
power to represent its members for the purpose of
enforcing the provisions of the CBA. A party acting in
a representative capacity, such as a union, may be
permitted to intervene in a case.
A person whose interests are already represented
will not be permitted to do the same except when
there is a suggestion of fraud or collusion or that the
representative will not act in good faith for the
protection of all interests represented by him.29
EFFECTS OF NON-REGISTRATION
(1) No acquisition of legal personality
(2) Union does not become entitled to all rights and
privileges granted by law to legitimate labor
organization.
Being an affiliate union does not mean the affiliate
cannot stand on its own without the federation.
A local union owes its creation and continued
existence to the will of its members and not to the
federation. 30
When local union may sever its relationship with parent
federation.
In the absence of enforceable provisions in
federation’s constitution preventing disaffiliation of
a local union, a local may sever its relationship with
its parent.31
CANCELLATION OF UNION CERTIFICATE OF
REGISTRATION
Cancellation proceedings, defined
Legal process leading to the revocation of the
legitimate status of a union or workers’
association.32
GROUNDS FOR CANCELLATION (ART 247, LC):
(1) Misrepresentation,
(2) false statement or fraud in connection with the
adoption or ratification of the constitution and
by-laws or amendments thereto, the minutes of
ratification, and list of members who took part
in the ratification.
29Acedera v. ICTSI, G.R. No. 146073 (2003).
30Tropical Hut Employees Assoc. V. Tropical Hut Food Market, G.R.
No.L-43495-99 (1990).
31Supra note 18.
32 IR, Book V, Rule I, Sec. 1 (g)
 LABOR RELATIONS
(3) Misrepresentation, false statements or fraud in
connection with the election of officers,
minutes of election of officers, list of voters.
(4) Voluntary dissolution by the members.
Comingling not a ground. The rule in Art. 251 of
prohibiting the commingling of supervisors with the
rank-and-file in a union is not a ground for
cancellation of union registration.33
For fraud and misrepresentation to be grounds for
cancellation of union registration under the Labor
Code, the nature of the fraud and misrepresentation
must be grave and compelling enough to vitiate the
consent of a majority of union members.34
Existence of ground does not automatically lead to
cancellation. An overly stringent interpretation of
the statute governing cancellation of union
registration without regard to the surrounding
circumstances cannot be allowed. Otherwise, it
would lead to an unconstitutional application of the
statute and emasculation of public policy objectives.
Worse, it can render nugatory the protection to
labor and social justice clauses that pervades the
Constitution and the Labor Code.35
Cancellation of union registration kills the union.
Cancellation of a certificate of registration is the
equivalent of snuffing out the life of a labor
organization, for without such registration, it loses
its rights under the labor code.36
UNION-MEMBER RELATIONS
GOVERNED BY
(1) Union constitution and by-laws
(2) Art 241: Rights and conditions of membership
(3) Art 260: ULP of labor organizations
Art 260(a)
It shall be unfair labor practice for a labor
organization, its officers, agents or representatives:
To restrain or coerce employees in the exercise of
their right to self-organization. However, a labor
organization shall have the right to prescribe its own
rules with respect to the acquisition or retention of
membership; xxx
LABOR RELATIONS IN PUBLIC SECTOR
RIGHT TO ORGANIZE
Bases:
✓ Constitution
✓ Labor Code
33AirPhil v. BLR,G.R.No.155395 (2006).
34Mariwasa v. Sec.Of DOLE, G.R.No.183317 (2009).
35Heritage Hotel Manila v. National Union of Workers, G.R. No.
178296 (2011).
36Supra note 22.
LA SALLIAN COMMISION ON BAR OPERATIONS
9 LABOR LAW
✓ Statutory
✓ International Treaties
1. CONSTITUTION
Section 8, Article III, The 1987 Constitution of the
Philippines: Right to Organize
The right of the people, including those employed in
the public and private sectors, to form unions,
associations, or societies for purposes not contrary
to law shall not be abridged.
Section 3, Article XIII, The 1987 Constitution of the
Philippines: Labor
The State shall afford full protection to labor, local
and overseas, organized and unorganized, and
promote full employment and equality of
employment opportunities for all.
It shall guarantee the rights of all workers to self-
organization, collective bargaining and negotiations,
and peaceful concerted activities, including the right
to strike in accordance with law. They shall be
entitled to security of tenure, humane conditions of
work, and a living wage. They shall also participate
in policy and decision-making process affecting their
rights and benefits as may be provided by law.
The State shall promote the principle of shared
responsibility between workers and employers and
the preferential use of voluntary modes in settling
disputes, including conciliation, and shall enforce
mutual compliance therewith to foster industrial
ARE peace.
The State shall regulate the relations between
workers and employers, recognizing the right of
labor to its just share in the fruits of production and
the right of enterprises to reasonable returns on
investments, and to expansion and growth.
Section 2(5), Article IX-B, The 1987 Constitution of
the Philippines: The Civil Service Commission
2(5) The right to self-organization shall not be
denied to government employees.
2. LABOR CODE
Article 254, Labor Code : Right of Employees in the
Public Service
Employees of government corporations established
under the Corporation Code shall have the right to
organize and to bargain collectively with their
respective employers. All other employees in the
civil service shall have the right to form associations
for purposes not contrary to law.
EMPLOYER RIGHTS OF EMPLOYEES
 LABOR RELATIONS 10 LABOR LAW

Government Corporation Right to Organize, Right Right to Organize to take legislative measures
organized under the to Bargain Collectively which would prejudice, or to apply the law in
Corporation Code such a manner as to prejudice, the guarantees
(GOCC) provided for in that Convention.
Civil Service Commission Right to Form
Associations for purposes Laws Covering The Right To Self-Organize Of
not contrary to law Government Employees37
(1) Presidential Decree No. 807 creating the CSC,
3. STATUTORY prohibits all government employees from
striking
EO No. 180 (2) The 1987 Constitution
Guidelines for the exercise of the right to organize (3) CSC Memorandum Circular No. 6, enjoins strikes
of government employees, creating a public sector by government officials and employees
labor-management-council. (4) Executive Order No. 180, established the
Public Sector Labor-Management Council
4. INTERNATIONAL TREATIES (PSLMC)
Signatories or members of these international
treatises may prescribe restrictions on the exercise EO NO. 180, SEC 2
of the right by government officials because of Section 2, EO No. 180
public safety. All government employees can form, join or assist
employees’ organizations of their own choosing for
ILO Convention No. 151 Provides for protection of the furtherance and protection of their interests.
the right to organize and procedures for determining They can also form, in conjunction with appropriate
conditions of employment in the Public Service government authorities, labor-management
committees, work councils and other forms of
A. INTERNATIONAL COVENANTS ON ECONOMIC, workers’ participation schemes to achieve the same
SOCIAL AND CULTURAL RIGHTS (ART 8(D)) objectives.
Article 8(d), International Covenant on Economic,
Social, and Cultural Rights Limited Purpose and Rights
The States parties to the present Covenant (1) This is for reasons of security and safety.
undertake to ensure: (2) They are granted the right to organize simply for
“the furtherance and protection of their
(d) The right to strike provided that it is exercised interests.”38
in conformity with the laws of the particular (3) The highest law of the land guarantees to
country. government employees the right to organize and
to negotiate, but not granted the right to
strike.39
B. CIVIL AND POLITICAL RIGHTS (ART 22) (4) Terms and conditions of employment fixed by
Article 22, International Covenant on Civil and law are excluded from negotiations
Political Rights (5) No signing Bonus40
(1) Everyone shall have the right to freedom of Ratio: Because the process of collective negotiations
association with others, including the right to in the public sector does not encompass terms and
form and join trade unions for the protection conditions of employment requiring the
of his interests. appropriation of public funds.41

(2) No restrictions may be placed on the exercise OFFICERS WITH RIGHT TO SELF-
of this right other than those which are ORGANIZE
prescribed by law and which are necessary in a
(1) Rank & file employees-They include those who
democratic society in the interests of national
lost their employment because of a labor
security or public safety, public order, the
dispute OR unfair labor practice
protection of public health or morals or the (2) Temporary Employees
protection of the rights and freedoms of (3) Professors at the University of the Philippines
others. This article shall not prevent the who are not exercising managerial or highly
imposition of lawful restrictions on members of confidential functions are rank-and-file
the armed forces and of the police in their
exercise of this right.

(3) Nothing in this article shall authorize States 37Arizala, etal. vs. CA, etal., GR Nos L-43633-34 (1990)
38Arizala, etal. vs. CA, etal., supra
Parties to the International Labour 39Azucena, Jr., C.A., The Labor Code: With Comments and Cases,
Organisation Convention of 1948 concerning Vol II, p 249
Freedom of Association and Protection of the 40Id, p 251
41Id, p 251

LA SALLIAN COMMISION ON BAR OPERATIONS

 LABOR RELATIONS 11 LABOR LAW

employees and may unionize separately from REGISTRATION

the non-academic personnel.42
Section 7, EO No. 180: Registration of Employees’
Organization
Government employees’ organizations shall register
PROTECTION OF RIGHT with the Civil Service Commission and the
1. NON-DISCRIMINATION Department of Labor and Employment. The
application shall be filed with the Bureau of Labor
EO No. 180, Sec 5
Relations of the Department which shall process the
Section 5, EO No. 180: Non-Discrimination
same in accordance with the provisions of the Labor
Government employees shall not be discriminated
Code of the Philippines, as amended. Applications
against in respect of their employment by reason of
may also be filed with the Regional Offices of the
their membership in employees organizations or
Department of Labor and Employment which shall
participation in the normal activities of their
immediately transmit the said applications to the
organization. Their employment shall not be subject
Bureau of Labor Relations within three (3) days from
to the condition that they shall not join or shall
receipt thereof.
relinquish their membership in the employees’
organizations.
Section 8, EO No. 180: Registration of Employees’
Organization
Government employees shall not be discriminated
Upon approval of the application, a registration
against for membership or participation in an
employee organization. certificate shall be issued to the organization
recognizing it as a legitimate employees’
Employment cannot be subject to the condition of organization with the right to represent its members
and undertaken activities to further and defend its
non-membership or non-participation.
interests. The corresponding certificates of
registration shall be jointly approved by the
2. NON-INTERFERENCE IN UNION Chairman of the Civil Service Commission and
ADMINISTRATION Secretary of Labor and Employment.
EO No. 180, Sec 6
Section 6, EO No. 180: Non-Intervention
Government authorities shall not interfere in the
establishment, functioning or administration of REGISTRATION AGENCY
government employees’ organizations through acts
“Council” refers to the Public Sector Labor
designed to place such organizations under the
Management Council (PSLMC) created under
control of government authority.
Executive Order No. 18043
Government officials shall not intervene in any
EFFECT OF REGISTRATION
manner in any activity of the employees’
organization even though it is to place them under • Right to be a Bargaining Unit
government authority • To participate in Government Activities

BARGAINING UNIT, COMPOSITION

Section 9, EO No. 180: Sole and Exclusive Employees’
Representative
The appropriate organizational unit shall be the
employers units consisting of rank-and-file
employees unless circumstances otherwise require.

Appropriate Bargaining Unit:

The organizational unit shall be composed of the
rank-and-file employees in a single employer’s unit

UNLESS otherwise required by circumstances

EXCLUSIVE REPRESENTATIVE
Section 10, EO No. 180: Sole and Exclusive
Employees’ Representative

42University of the Philippines vs. Ferrer-Calleja, GR No. 96189,

1992 43 Sec 7, EO No. 180; Rule I(n), IRR

LA SALLIAN COMMISION ON BAR OPERATIONS

 LABOR RELATIONS
The duly registered employees’ organization having
the support of the majority of the employees in the
appropriate organizational unit shall be designated
as the sole and exclusive representative of the
employees.
Conditions:
Duly registered organization. Support of majority of
employees in the organizational unit
SETTLEMENT OF WORK CONDITIONS
NEGOTIABLE MATTERS 44
✓ Those NOT fixed by Law
✓ Vacation and leave schedules
✓ Work assignment of pregnant
✓ Recreational, social, athletic, and
activities and facilities
NON-NEGOTIABLE MATTERS45
✓ Those requiring appropriation of funds
✓ Those fixed by Law
✓ Increase in salary and allowances
✓ Car plan
✓ Special hospitalization
✓ Medical and dental services
✓ Increase in retirement benefits
✓ Those involving exercise of management
prerogatives
✓ Appointment
✓ Promotion
✓ Assignment
✓ Penalties as disciplinary action
The employees are no longer entitled to other
monetary benefits because these are already
covered by law (EO 180). Those covered by law
CANNOT be subject to CNA.46
PSLCM Resolution No. 02 (2003)
Only savings from operating expenses generated
after the signing of the Collective Negotiation
Agreement (CNA) can be used to pay for the CNA
incentive and improvement of benefits.
AFFILIATION AND DISAFFILIATION
OF THE LOCAL UNION FROM THE
MOTHER UNION
AFFILIATION HAPPENS WHEN:
(1) An independent union affiliates
federation
(2) A chartered local gets independent registration
and remains affiliated with the federation
PURPOSE: To increase collective bargaining power
44Sec.2, Rule VIII, IRR, EO No. 180
45Sec. 3, id
46Abanilla vs. Commission, 468 SCRA 87 (2005)
LA SALLIAN COMMISION ON BAR OPERATIONS
12 LABOR LAW
INDEPENDENT UNION. LOCAL UNION
Refers to a labor organization operating at the
enterprise level that acquired legal personality
through independent registration.47
CHARTERED LOCAL (LOCAL/CHAPTER)
Refers to a labor organization in the private sector
operating at the enterprise level that acquired legal
personality through registration with the Regional
office.48
Trade union centers cannot form chapters. No law
mentioning a trade union center as being among the
labor organizations allowed to charter. 49
TRADE UNION CENTERS
cultural Composed of group of registered national unions or
federations
AFFILIATE
Refers to an independent union affiliated with a
federation, national union or a chartered local which
was subsequently granted independent registration
but did not disaffiliate from its federation, reported
to the regional office and the bureau.50
NATIONAL UNION OR FEDERATION
Refers to a group of legitimate labor unions in a
private establishment organized for collective
bargaining or for dealing with employers concerning
terms and conditions of employment for their
member unions or for participating in the
formulation of social and employment policies,
standards and programs, registered with the
Bureau.51
Local union separate personality from federation.
A local union maintains its separate personality
despite affiliation with a larger national
federation.52
A.3.A NATURE OF RELATIONSHIP
MEMBER-LABOR UNION, FIDUCIARY
The nature of the relationship between the union
and its members is one which is fiduciary in nature,
and arises out of two factors:
(1) one is the degree of dependence of the
individual employee on the union organization;
and
(2) the comprehensive power vested in the union
with a with respect to the individual.
The union may be considered but the agent of its
members for the purpose of securing for them fair
and just wages and good working conditions and is
47 IR, Book V, Rule I, Sec 1 (w)
48 IR, Book V, Rule I, Sec 1 (i)
49San Miguel Corp. Employees Union v San Miguel Packing, 533 SCRA
125 (2007).
50 IR, Book V, Rule I, Sec 1(a)
51 IR, Book V, Rule I, Sec 1 (kk)
52Sugbuanon Rural Bank v Laguesma, G.R. No. 116194 (2000).
 LABOR RELATIONS
subject to the obligation of giving the members as
its principals all information relevant to union and
labor matters entrusted to it. (Heirs of Cruz v. CIR,
G.R. No. L-23331-32 (1969))
FEDERATION-LOCAL RELATIONSHIP, AGENCY.
The mother federation was a mere agent and the
local chapter/union was the principal,
notwithstanding the failure of the local union to
comply with the procedural requirements that would
make it a legitimate labor organization.53
Federation and union are separate entities. A local
union does not owe its existence to the federation
with which it is affiliated. It is a separate and
distinct voluntary association owing its creation to
the will of its members. Mere affiliation does not
divest the local union of its own personality, neither
does it give the mother federation the license to act
independently of the local union. It only gives rise to
a contract of agency, where the former acts in
representation of the latter. Hence, local unions are
considered principals while the federation is deemed
to be merely their agent.54
Supervisory/Rank and File Union Affiliation
Rank-and-file union and supervisory union operating
within the same establishment may join the same
federation or national union.55
When local supervisors union not allowed to affiliate
with federation of rank-and-file union. To avoid a
situation where supervisors would merge with the
rank-and-file or where the supervisors' labor
organization would represent conflicting interests,
then a local supervisors' union should not be allowed
to affiliate with a national federation of unions of
rank-and-file employees where that federation
actively participates in union activities in the
company.
Two conditions must concur:
• the rank-and-file employees are directly under
the authority of supervisory employees
• the national federation is actively involved in
union activities in the company56
The affiliation of two local unions in a company with
the same national federation is not by itself a
negation of their independence since in relation to
the employer, the local unions are considered as the
principals, while the federation is deemed to be
merely their agent. This conclusion is in accord with
the policy that any limitation on the exercise by
employees of the right to self-organization
guaranteed in the Constitution must be construed
strictly. Workers should be allowed the practice of
this freedom to the extent recognized in the
53Filipino Pipe & Foundry Corp v NLRC, G.R. No. 115189 (1999).
54Coastal Subic Bay Terminal v DOLE, G.R. No. 157117 (2006).
55 Article 255, Labor Code
56Atlas Lithographic Services v Laguesma, 205 SCRA 12 (1992).
LA SALLIAN COMMISION ON BAR OPERATIONS
13 LABOR LAW
fundamental law.57
DISAFFILIATION
A local union may disaffiliate at any time from its
mother federation, absent any showing that the
same is prohibited under its constitution or rule.
Such, however, does not result in it losing its legal
personality altogether.
The right of the local members to withdraw from the
federation and to form a new local union depends
upon the provisions of the union's constitution, by-
laws and charter and, in the absence of enforceable
provisions in the federation's constitution preventing
disaffiliation of a local union, a local may sever its
relationship with its parent.58
Bar 1994
A local union has the right to disaffiliate from its
mother union or declare its autonomy. A local union,
being a separate and voluntary association, is free to
serve the interests of all its members including the
freedom to disaffiliate or declare its autonomy from
the federation to which it belongs when
circumstances warrant, in accordance with the
constitutional guarantee of freedom of association.59
Disaffiliation not considered disloyalty. A local union
which has affiliated itself with a federation is free to
sever such affiliation anytime and such disaffiliation
cannot be considered disloyalty. In the absence of
specific provisions in the federation’s constitution
prohibiting disaffiliation or the declaration of
autonomy of a local union, a local may dissociate
with its parent union.60
Disaffiliation, however, by a union that is not
independently registered is suicide.
MASS DISAFFILIATION
Certification election, most expeditious way to
determine SEBA after disaffiliation. Once the fact of
disaffiliation has been demonstrated beyond doubt,
as in this case, a certification election is the most
expeditious way of determining which labor
organization is to be the exclusive bargaining
representative.61
PERIOD
Disaffiliation may be pursued at anytime as long as
supported by 2/3 vote of general membership. As a
rule, a labor union may disaffiliate from the mother
union only within the freedom period. PD 1391 - “No
petition for certification election, for intervention
and disaffiliation shall be entertained or given due
course except within the 60-day freedom period
57De La Salle University Medical Center v Laguesma, 294 SCRA 141
(1998).
58 Id.
59MSMG-UWP v Ramos, NLRC, G.R. No. 113907 (2000).
60Supra note 79.
61Philippine Labor Alliance Council v BLR, 75 SCRA 163 (1977).
 LABOR RELATIONS
xxx.” However, under the Labor Code Art. 245-A,
disaffiliation may be carried out by a vote of 2/3 of
its general membership in a meeting duly called for
that purpose to dissolve the organization.62
SUBSTITUTIONARY DOCTRINE
The "substitutionary" doctrine only provides that the
employees cannot revoke the validly executed
collective bargaining contract with their employer by
the simple expedient of changing their bargaining
agent.63
B. BARGAINING UNIT
Test to determine the constituency of an
appropriate bargaining unit (ABU)
Art 267: Exclusive bargaining representation and
workers’ participation in policy and decision-making
The labor organization designated or selected by the
majority of the employees in an appropriate
collective bargaining unit shall be the exclusive
representative of the employees in such unit for the
purpose of collective bargaining. However, an
individual employee or group of employees shall
have the right at any time to present grievances to
their employer.
BARGAINING UNIT, DEFINED.
Bar 1998
IR, Book V, Rule 1, Sec. 1(d)
A group of employees sharing mutual interests within
a given employer unit, comprised of all or less than
all of the entire body of employees in the employer
unit or any specific occupational or geographical
grouping within such employer unit.
Bar 2000, 2006
Exclusive Bargaining representative
refers to a legitimate labor union duly recognized or
certified as the sole and exclusive bargaining
representative or agent of all the employees in a
bargaining unit.
Where a union certified as EBA in a bargaining unit
had previously filed a case in representation not only
of its members but also of the members of a rival
union, the latter’s members cannot subsequently
claim that they were not parties in the earlier
case.64
If union is not the exclusive representative of the
majority of the employees of petitioner, it cannot
demand from employer the right to bargain
collectively in their behalf. xxx Only the labor
organization designated or selected by majority of
the employees in an appropriate collective
62Allianceof Nationalist v. Samana, 258 SCRA 371 (1996).
63 Cebu Portland Cement Co. vs. Cement Workers Union, 25 SCRA
504, Nos. L-25032 and L-25037-38 October 14, 1968
64Militante v NLRC, 246 SCRA 365 (1995).
LA SALLIAN COMMISION ON BAR OPERATIONS
14 LABOR LAW
bargaining unit is the exclusive representative of the
employees in such unit for the purpose of collective
bargaining, through CE or voluntary recognition.65
DETERMINATION OF ABU
Our labor laws do not however provide the criteria
for determining the proper collective bargaining
unit. Jurisprudence/case laws provide for different
factors.66
WHO DETERMINES?
Initially, the members themselves. But if dispute
arises as regards appropriateness of ABU, it may be
referred to the BLR. Appropriateness may also be
resolved in a petition for certification election.
C. BARGAINING REPRESENTATIVE
C.1. DETERMINATION OF REPRESENTATION
STATUS
The basic test in determining the appropriate
bargaining unit is that a unit, to be appropriate,
must affect a grouping of employees who have
substantial, mutual interests in wages, hours,
working conditions and other subjects of collective
bargaining (citing Smith on Labor Laws, 316-317;
Francisco, Labor Laws, 162).67
FACTORS
(1) Globe doctrine - Express will or desire of the
employees
(2) Substantial Mutual Interests Rule - Affinity and
Unity of the employees’ interest, such as
substantial similarity of work and duties, or
similarity of compensation and working
conditions
(3) Similarity of Employment status.
(4) Bargaining history – prior collective bargaining
history
Bar 2007
Community of interest
Not exactness of interests. Interrelatedness or
interdependence is sufficient.
The basic test of an asserted bargaining unit’s
acceptability is whether or not it is fundamentally
the combination which will best assure to all
employees the exercise of their CB rights. 68
The bargaining history factor is the weakest factor in
determining the bargaining unit. xxx The [Supreme
Court] has categorically ruled that the existence of a
prior collective bargaining history is neither decisive
nor conclusive in the determination of what
65PhilDiamond Hotel v Manila Diamond Hotel EU, G.R. NO.158075
(2006).
66UP v Calleja, 211 SCRA 451 (1992).
67Supra note 26.
68Democratic Labor Assoc. v. Cebu Stevedoring, 103 Phil 1103
(1958).
 LABOR RELATIONS
constitutes an appropriate bargaining unit.69
What will best assure the employees’ rights to CB is
principal consideration. It is not the convenience of
the employer that constitutes the determinative
factor in forming an appropriate bargaining unit.70
UNIT SEVERANCE AND GLOBE DOCTRINE
Bar 2007
Globe doctrine. Bargaining units may be formed
through separation of new units from existing from
existing ones whenever plebiscites had shown the
worker’s desire to have their own representatives.71
DUTY OF COURT TO CONDUCT PLEBISCITE 72
No one would deny court’s right to full investigation
in arriving at a correct and conclusive finding of fact
in order to deny or grant the petitions for CE. One
way of determining the will of employees. Plebiscite
not to be conducted by the DOLE but by the court.
Order to hold plebiscite in interlocutory.
SIZE OF UNIT AND EFFECT OF SELF-
ORGANIZATION
When confidential employees are few in number and
by practice and tradition identified with the
supervisors, such identity of interest should allow
their inclusion in the bargaining unit of supervisors-
managers for purposes of CB. The breaking up of
bargaining agents into tiny units will greatly impair
their organizational value – the ineffectiveness of a
small union with scanty members as bargaining unit.
73
EFFECT OF PRIOR AGREEMENT
Prior agreement not binding to employees of
separate BU. A prior agreement (collective
bargaining agreement) does not bind employees of a
separate bargaining unit or if they are indeed part of
the bargaining unit. The agreement will not bind
subsequent federation or union if it curtails the right
to self-organization as guaranteed by the
Constitution and labor laws.74
DETERMINING AGENCY
BLR no longer handles all labor-management
disputes. Its functions and jurisdiction are largely
confined to union matters, collective bargaining
registry, and labor education
69San
Miguel v. Laguesma, G.R. No. 100485 (1994).
70Supra note 70.
71Mechanical Departments Labor Union v. CIR, 24 SCRA 925 (1968).
72KapisananngmgaManggagawasa Manila Railroad Co. v Yard Crew
Union, 109 P 1143 (1960).
73Filoil refinery v. Filoil Supervisory & Confidential Employees
Assoc., G.R. No. L-26736 (1972)
74General Rubber v. BLR, 155 SCRA 283 (1997).
LA SALLIAN COMMISION ON BAR OPERATIONS
15 LABOR LAW
METHODS OF ESTABLISHING MAJORITY
STATUS
1. Voluntary Recognition
2. Certification Election
3. Consent Election
4. Run-off Election
POLICY/RATIONALE
Article 251.
A legitimate labor organization shall have the right:
(b) To be certified as the exclusive representative of
all the employees in an appropriate bargaining unit
for purposes of collective bargaining;
IR, Book V, Rule VI, Sec 1
Policy: it is the policy of the state to promote free
trade unionism through expeditious procedures
governing the choice of an exclusive bargaining
agent. The determination of such exclusive
bargaining agent is a non-litigious proceeding and, as
far as practicable, shall be free from technicalities
of law and procedure, provided that in every case,
the exclusive bargaining agent enjoys the majority
support of all the employees in the bargaining unit.
Art 218(A) (b)
To promote free trade unionism as an instrument for
the enhancement of democracy and the promotion
of social justice and development;
Constitution Art XIII, Sec 3: Labor
The State shall afford full protection to labor, local
and overseas, organized and unorganized, and
promote full employment and equality of
employment opportunities for all.
It shall guarantee the rights of all workers to self-
organization, collective bargaining and negotiations,
and peaceful concerted activities, including the right
to strike in accordance with law. They shall be
entitled to security of tenure, humane conditions of
work, and a living wage. They shall also participate
in policy and decision-making processes affecting
their rights and benefits as may be provided by law.
The State shall promote the principle of shared
responsibility between workers and employers and
the preferential use of voluntary modes in settling
disputes, including conciliation, and shall enforce
their mutual compliance therewith to foster
industrial peace.
The State shall regulate the relations between
workers and employers, recognizing the right of
labor to its just share in the fruits of production and
the right of enterprises to reasonable returns to
investments, and to expansion and growth.
An employer does not have the power to declare a
 LABOR RELATIONS
union as the exclusive representative of its workers
for the purpose of collective bargaining. Voluntary
recognition mere formality. 75
1. VOLUNTARY RECOGNITION
Art 251 (c)
To be furnished by the employer, upon written
request, with its annual audited financial
statements, including the balance sheet and the
profit and loss statement, within thirty (30) calendar
days from the date of receipt of the request, after
the union has been duly recognized by the employer
or certified as the sole and exclusive bargaining
representative of the employees in the bargaining
unit, or within sixty (60) calendar days before the
expiration of the existing collective bargaining
agreement, or during the collective bargaining
negotiation;
DEFINED
The process by which a legitimate labor union is
recognized by the employer as the exclusive
bargaining representative or agent in a bargaining
unit, reported with the Regional Office in
accordance with rule vii, sec 2 of these rules.
REQUIREMENTS
Unorganized establishment – no certified exclusive
bargaining representative
• Only 1 union operating in the bargaining unit
• if more than 1 union, a CE must be conducted
• Union is a majority union (51%)
EFFECTS
(1) The recognized labor union enjoy all rights of an
exclusive bargaining agent
(2) Has the right to compel management to bargain
with it
(3) One year period bar from entry of voluntary
recognition will be placed allowing no
certification election to be filed within that one
year.
75Samahang Manggagawa sa PREMEX v Sec of Labor, G.R. No. 10772
(1998).
LA SALLIAN COMMISION ON BAR OPERATIONS
16 LABOR LAW
PUBLIC SECTOR
1. VOLUNTARY RECOGNITION
Section 11, EO No. 180: Sole and Exclusive
Employees’ Representative
A duly registered employees’ organization shall be
accorded voluntary recognition upon a showing that
no other employees’ organization is registered or is
seeking registration, based on records of the Bureau
of Labor Relations, and that the said organization
has the majority support of the rank-and-file
employees in the organizational unit.
Where there is only one registered organization in
the unit, they may be accorded voluntary
recognition.
CONDITIONS:
Proven that there is no other employees’
organization registered or seeking registration in the
unit (based on the records of BLR)
This organization must have the majority support of
the rank-and-file employees in the unit.
2. CERTIFICATION ELECTION
Bar 2001, 2003, 2004, 2005, 2013
IR, Book V, Rule I, Sec 1 (h)Certificate election or
consent election
refers to the process of determining through secret
ballot the sole and exclusive representative of the
employees in an appropriate bargaining unit for
purposes of collective bargaining or negotiation. a
certification election is ordered by the department,
while a consent election is voluntarily agree upon by
the parties, with or without the intervention by the
department.
NATURE OF PROCEEDING
Certification election is not litigation but a mere
investigation of a non-adversary character where the
rules of procedure are not strictly applied. Technical
rules and objections should not hamper the correct
ascertainment of the labor union that has the
support of confidence of the majority of the workers
and is thus entitled to represent them in their
dealings with management.76
Bar 2012
WHO MAY FILE
A petition for CE may be filed by a legitimate labor
union in an unorganized establishment.
Med-arbiter must automatically order the conduct of
CE in an unorganized establishment upon filing of a
petition for CE by a legitimate labor union.77
76Port Workers Union v DOLE, 207 SCRA 329 (1992).
77Sugbuanon Rural Bank v Laguesma, G.R. No. 116194 (2000).
 LABOR RELATIONS
EMPLOYER MAY ALSO BE AN INITIATING PARTY
(BYSTANDER RULE)
Bar 1996
Art 270.When an employer may file petition.
When requested to bargain collectively, an employer
may petition the Bureau for an election. If there is
no existing certified collective bargaining agreement
in the unit, the Bureau shall, after hearing, order a
certification election.
All certification cases shall be decided within twenty
(20) working days.
The Bureau shall conduct a certification election
within twenty (20) days in accordance with the rules
and regulations prescribed by the Secretary of Labor.
Art 271. Employer as Bystander.
In all cases, whether the petition for certification
election is filed by an employer or a legitimate labor
organization, the employer shall not be considered a
party thereto with a concomitant right to oppose a
petition for certification election. The employer’s
participation in such proceedings shall be limited to:
being notified or informed of petitions of such
nature; and
submitting the list of employees during the pre-
election conference should the Med-Arbiter act
favorably on the petition. (As amended by Section
12, Republic Act No. 9481 which lapsed into law on
May 25, 2007 and became effective on June 14,
2007).
Employer no standing to question petition for CE.
Employer not a party to certification election which
is the sole or exclusive concern of the workers
except when workers request to bargain collectively.
Employer may not question the validity of a CE. 78
Except where the employer has to file a petition for
certification election pursuant to Article 258 of the
Labor Code because of a request to bargain
collectively, it has nothing to do with a certification
election which is the sole concern of the workers. Its
role in a certification election has aptly been
described in Trade Unions of the Philippines and
Allied Services (TUPAS) v. Trajano, as that of a mere
by-stander. It has no legal standing in a certification
election as it cannot oppose the petition or appeal
the Med-Arbiter's orders related thereto. An
employer that involves itself in a certification
election lends suspicion to the fact that it wants to
create a company union.79
Voting is done by secret ballot ordered by the DOLE.
78Hercules Industries, Inc. v SOLE, 214 SCRA 129 (1992).
79Philippine Scouts, et al., v Torres, 224 SCRA 682 (1993).
LA SALLIAN COMMISION ON BAR OPERATIONS
17 LABOR LAW
PURPOSE:
• Find out if employees want to be represented;
• Which union should be certified
IN AN UNORGANIZED ESTABLISHMENT
Art 269. Petitions in unorganized establishments.
In any establishment where there is no certified
bargaining agent, a certification election shall
automatically be conducted by the Med-Arbiter upon
the filing of a petition by a legitimate labor
organization. (As amended by Section 24, Republic
Act No. 6715, March 21, 1989)
Article 263 of the Labor Code mandates that a
certification election shall automatically be
conducted by the Med-Arbiter upon the filing of a
petition by a legitimate labor organization. Nothing
is said therein that prohibits such automatic conduct
of the certification election if the management
appeals on the issue of the validity of the union's
registration.80
Since no certified bargaining agent represented the
supervisory employees, PT&T may be deemed an
unorganized establishment within the purview of
Art. 257 of the Labor Code. xxx The fact that
petitioner's rank-and-file employees were already
represented by a certified bargaining agent does not
make PT&T an organized establishment vis-a-vis the
supervisory employees. After all, supervisory
employees are "not . . . eligible for membership in a
labor organization of the rank-and-file employees."81
IN AN ORGANIZED ESTABLISHMENT
Organized establishment, defined
Refers to an enterprise where there exists a
recognized or certified sole and exclusive bargaining
agent.82
PETITION BEFORE FREEDOM PERIOD
Art 264. Duty to bargain collectively when there
exists a collective bargaining agreement.
When there is a collective bargaining agreement, the
duty to bargain collectively shall also mean that
neither party shall terminate nor modify such
agreement during its lifetime. However, either party
can serve a written notice to terminate or modify
the agreement at least sixty (60) days prior to its
expiration date. It shall be the duty of both parties
to keep the status quo and to continue in full force
and effect the terms and conditions of the existing
agreement during the 60-day period and/or until a
new agreement is reached by the parties.
80Sugbuanon Rural Bank v Laguesma, G.R. No. 116194 (2000).
81Philippine Telegraphic v Laguesma, 223 SCRA 452 (1993).
82 IR, Book V, Rule 1, Sec. 1 (ll)
 LABOR RELATIONS
CONTRACT BAR RULE
Bar 1999, 2000
Contract bar rule. Existing CBA bars any other labor
organization from filing a petition for CE except
within 60-day freedom period.83
PETITION BEYOND FREEDOM PERIOD
Purpose of prohibition of filing petition for CE
beyond freedom period. Otherwise put, the rule
prohibits the filing of a petition for certification
election during the existence of a collective
bargaining agreement except within the freedom
period, as it is called, when the said agreement is
about to expire. The purpose, obviously, is to ensure
stability in the relationships of the workers and the
management by preventing frequent modifications of
any collective bargaining agreement earlier entered
into by them in good faith and for the stipulated
original period.84
CBA automatically renewed until new agreement
reached. It shall be the duty of both parties to keep
the status quo and to continue in full force and
effect the terms and conditions of the existing
agreement during the 60-day period or until a new
agreement is reached by the parties.85
FORM OF PETITION
(1) Must be in writing
(2) Verified under oath
(3) Members and officers list
(4) Description of the bargaining unit
Statement indicating that:
(1) bargaining unit is unorganized or there is no
registered collective bargaining agreement;
(2) petition is filed within 60-day freedom period, if
there exists existing CBA;
(3) petition is filed outside the 1-year period from
date of recording of voluntary recognition or
conduct of CE or run-off and no appeal is
pending, if another union had been previously
recognized voluntarily or certified in a valid
certification. Signature support of at least 25%
of all employees of the APU
Rules of procedure not binding on labor cases.
Verification of pleadings is not a formal
jurisdictional requirement. When all requirements
have been complied with, it is incumbent upon the
med-arbiter to order a CE to be conducted.86
83Atlantic Gulf and Pacific Co. Manila Inc. v. Laguesma, 212 SCRA
281 (1992).
84National Congress of Union in Sugar Industry v Ferrer – Calleja, 205
SCRA 478 (1992).
85 Supra note 55.
86National Mines and Allied Workers Union v SOLE, 227 SCRA 821
(1993).
LA SALLIAN COMMISION ON BAR OPERATIONS
18 LABOR LAW
Bar 2009
SUBSTANTIAL SUPPORT
25% consent signatures requirement may be
belatedly submitted. We feel that the administrative
rule requiring the simultaneous submission of the
25% consent signatures upon the filing of petition for
certification election should not be strictly applied
to frustrate the determination of the legitimate
representative of the workers. Significantly, the
requirement in the rule is not found in Article 268,
the law it seeks to implement. This is all the more
reason why the regulation should at best be given
only a directory effect. Accordingly, we hold that
the mere filing of a petition for certification
election within the freedom period is sufficient
basis for the issuance of an order for the holding of
a certification election, subject to the submission of
the consent signatures within a reasonable period
from such filing.87
Whether retractions were before or after the filing
of the petition for CE has not much relevance. The
rule being followed in case of alleged retractions and
withdrawals, as appellant correctly pointed out, is
that the best forum for determining whether there
was indeed retractions is the certification election
itself wherein the workers can freely express their
choice in a secret ballot.88
Forced intervention/Motion for intervention
Incumbent union, forced intervenor. By force of law,
an incumbent union is automatically impleaded in a
petition for CE as well as other contending choices.
Written consent of at least 20% of the BU applies to
petition for CE only. It is crystal clear from the said
provisions that the requisite written consent of at
least 20% of the workers in the bargaining unit
applies to petitioners for certification election only,
and not to motions for intervention. Nowhere in the
aforesaid legal provisions does it appear that a
motion for intervention in a certification election
must be accompanied by a similar written consent.89
RESPONSIBLE AGENCIES
• BLR and med-arbiters (original jurisdiction)
• DOLE (regional offices)
REQUISITE FOR VALIDITY OF
ELECTION/FAILURE OF ELECTION
Majority of all eligible voters must cast their votes.
Less than majority = failure of election. Re-election
may be had upon appeal of any of the unions to be
held within 6 months after the first election.
Election null and void because members of
87Port Workers Union v DOLE, 207 SCRA 329 (1992).
88Oriental Tin Can Labor Union v SOLE, 294 SCRA 640 (1998).
89Philippine Association of Free Labor Union v Calleja, 169 SCRA 491
(1989).
 LABOR RELATIONS
cooperative (ineligible to vote) were allowed to vote
in the election.90
Effect of private agreement
Private agreement not binding to foreclose the
petition for CE.91
• Posting notice
• Notice of pre-election conference
• Voters’ list
• Optional: sample ballot
Posting of notice may not be waived.
VOTER'S LIST
IR, Book V, Rule IX, Sec 5
All employees who are members of the appropriate
bargaining unit sought to be represented by the
petitioner at the time of the issuance of the order
granting the conduct of a certification election shall
be eligible to vote. An employee who has been
dismissed from work but has contested the legality
of the dismissal in a forum of appropriate
jurisdiction at the time of the issuance of the order
for the conduct of a certification election shall be
considered a qualified voter, unless his/her dismissal
was declared valid in a final judgment at the time of
the conduct of the certification election.
In case of disagreement over the voters’ list or over
the eligibility of voters, all contested voters shall be
allowed to vote. But their votes shall be segregated
and sealed in individual envelopes in accordance
with Sections 10 and 11 of this Rule.
Employees with questioned dismissal are still
qualified to vote. Need not be resolved before CE be
conducted.92
Dismissed employees may vote. Without a final
judgment declaring the legality of dismissal,
dismissed employees are eligible or qualified voters
ELECTION PROCEEDINGS
refers to the period during a certification election,
consent or run-off election and election of union
officers, starting from the opening to the closing of
the polls, including the counting, tabulation and
consolidation of votes but excluding the period for
final determination of the challenged votes and the
canvas thereof.
Waiver of protest. Grounds of protests not raised
before the close of the proceedings and duly
formalized within 5 days after the close of the
election proceedings are deemed waived.93
90Bengeut Electric Coop v Calleja, 180 SCRA 740 (1989).
91PLUM Federation v Noriel, 119 SCRA 299 (1982).
92Transport Corp v Laguesma, 227 SCRA 827 (1993).
93SamahanngManggagawa v Laguesma, 267 SCRA 303 (1997).
LA SALLIAN COMMISION ON BAR OPERATIONS
19 LABOR LAW
APPEAL
Art 272. Appeal from certification election orders.
Any party to an election may appeal the order or
results of the election as determined by the Med-
Arbiter directly to the Secretary of Labor and
Employment on the ground that the rules and
regulations or parts thereof established by the
Secretary of Labor and Employment for the conduct
of the election have been violated. Such appeal shall
be decided within fifteen (15) calendar days. (As
amended by Section 25, Republic Act No. 6715,
March 21, 1989)
“Close of election proceedings”, meaning. Period
from the closing of the polls to the counting and
tabulation of the votes as it could not have been the
intention of IR to include the term the period for the
final determination of the challenged votes and
canvas.94
NULLIFICATION OF ELECTION RESULTS
A general allegation of duress is not sufficient to
invalidate a CE. It must be shown by competent and
credible proof. xxx One’s religious convictions may
be the basis for an employee joining or refusing to
join a labor union; Exercise of constitutional
freedom cannot be a ground to invalidate CE.95
Bar 2011
(1) Bar to Certification Election
One year bar/certification year rule
CE is barred if there is voluntary recognition or a
valid CE, or consent or run-off election within a
year prior to filing of the petition for CE
(2) Negotiation bar rule
CE barred if union has commenced and
sustained negotiations in good faith within 1
year
(3) Deadlock bar rule
CB deadlock: failure in CB negotiations resulting
in a stalemate. CE barred if a bargaining
deadlock had been submitted to conciliation or
arbitration or had become subject of a valid
notice of strike or lockout. Exception: there was
no reasonable effort at good faith bargaining
(4) Contract bar rule
CE barred if outside the 60-day freedom period
immediately before the date of expiry of such 5-
year term of the CBA
SUSPENSION OF CERTIFICATION ELECTION:
PREJUDICIAL QUESTION
Anterior to the granting of an order allowing a CE, it
becomes necessary to inquire into the composition of
labor organization whenever status of the labor
organization is challenged on the basis of art (
262.96
94PhilFruits and Vegetable Industries v Torres, 211 SCRA 95 (1992).
95United Employees Union of Gelmart v Noriel, 67 SCRA 267 (1975).
96Dunlop Slazenger v SOLE, G.R. No. 131248 (1998).
 LABOR RELATIONS
Opposition
Non-submission of books of account is a ground to
oppose a petition for CE by the local or chapter
concerned.97
Effect of Petition for Cancellation of Trade Union
Registration
An order to hold a certification election is proper
despite the pendency of the petition for
cancellation of the registration certificate of the
respondent union.xxx The pendency of a petition for
cancellation of union registration does not preclude
CB. 98
PUBLIC SECTOR
RECOGNITION AFTER CERTIFICATION ELECTION
Section 12, EO No. 180: Sole and Exclusive
Employees’ Representative
Where there are two or more duly registered
employees’ organizations in the appropriate
organizational unit, the Bureau of Labor Relations
shall, upon petition, order the conduct of a
certification election and shall certify the winner as
the exclusive representative of the rank-and-file
employees in said organizational unit.
Where there are two or more unions in the
bargaining unit, a Certification Election must take
place
CERTIFICATION ELECTION
“Accreditation”
• Whoever gets accredited will be the exclusive
representative of the unit
• May be conducted by the BLR
Whether the employees of National Housing
Corporation are covered by the Labor Code or by the
civil service laws, a certification election may be
conducted.99
3. RUN-OFF ELECTION
Definition
Bar 2000, 2006
Art 268 par 1 penultimate sentence
IR, Book V, Rule I, Sec 1 (ss)
an election between the labor unions receiving the
two highest number of votes in a certification or
consent election with 3 or more choices, where such
a certified or consent results in none of the 3 or
more choices receiving the majority of the valid vote
cast; provided that the total number of votes for all
contending unions is at least 50% of the number of
votes cast.
97ProtectionTechnology v SOLE, 242 SCRA 99 (1995).
98Legend International v KilusangManggagawangLegenda, G.R. No.
169754 (2011).
99Trade Unions of the Philippines and Allied Services vs. National
Housing Corporation, GR No. 49677 (1989)
LA SALLIAN COMMISION ON BAR OPERATIONS
20 LABOR LAW
CONDITIONS FOR RUN-OFF
✓ Two labor unions receiving highest number of
votes in a certification or consent election with
3 or more choices;
✓ No labor union receiving majority of the votes
cast;
✓ Total number of votes for all contending unions
= at least 50% of the number of votes cast
4. CONSENT ELECTION
Bar 2000, 2004
IR, Book V, Rule VIII, Sec 10. Consent election;
agreement
in case the contending unions agree to a consent
election, the med-arbiter shall not issue a formal
order calling for the conduct of certification
election, but shall enter the fact of the agreement
in the minutes of hearing. The minutes of the
hearing shall be signed the parties and attested to
by the Med-Arbiter. Med-Arbiter shall, immediately
thereafter, forward records of the petition to the
Regional Director or his/her authorized
representative for the determination the election
officer by the contending unions through raffle. The
first pre-election conference shall be scheduled
within ten days from the date of entry of agreement
to conduct consent election.
IR, Book V, Rule VIII, Sec 11. Number of hearings;
pleadings
– if the contending unions fail to agree to a consent
election during the preliminary conference, the
med-arbiter may conduct as many hearings as
he/she may deem necessary, but in no case shall the
conduct thereof exceed 15 days from the date of the
schedule preliminary conference/hearing, after
which time petition shall be considered submitted
for decision. Med-arbiter shall have control of the
proceedings. Postponements of continuances shall be
discouraged.
Within the same 15-day period within which the
petition is heard, the contending labor unions may
file such pleadings as they may deem necessary for
the immediate resolution of the petition. Extensions
of time shall not be entertained. All motion shall be
resolved by the med-arbiter in the same order or
decision granting or denying the petition
CONSENT ELECTION
• Not ordered by the DOLE
• Agreed upon by the parties, with or without the
intervention of the DOLE
EFFECTS
IR, Book V, Rule VIII, Sec 23. Effects of consent
election
where a petition for certification election had been
filed, and upon the intercession of the Med-Arbiter,
 LABOR RELATIONS
the parties agree to hold a consent election, the
results thereof shall constitute a bar to the holding
of a certification election for one year from the
holding of such consent election. Where an appeal
has been filed from the results of the consent
election, the running of the one-year period shall be
suspended until the decision on appeal has become
final and executory.
Where no petition for certification election was filed
but the parties themselves agree to hold a consent
election with the intercession of the Regional Office,
the result thereof shall constitute a bar to another
petition for certification election
D. RIGHTS OF LABOR ORGANIZATION
D.1. CHECK OFF, ASSESSMENT, AGENCY FEES
UNION DUES AND SPECIAL
ASSESSMENTS
RIGHT OF MEMBERS AS REGARDS UNION FUNDS
(ART 250, LC)
✓ To full and detailed financial reports (250-b)
✓ To audited, verified financial statements (250-l)
✓ To inspect books of accounts (250-m)
✓ To fiscal officers duly authorized by constitution
and by-laws (250-g)
✓ To fiscal officers reported to the SOLE (250-g)
✓ To fiscal officers who are not scoundrels (250-f)
✓ To have members payment receipted (250-h)
✓ To have income and expenses properly
documented (250-j)
✓ To have funds used for authorized purposes only
(247-i)
Bar 2009, 2011
Art. 289. Visitorial power.
The Secretary of Labor and Employment or his duly
authorized representative is hereby empowered to
inquire into the financial activities of legitimate
labor organizations upon the filing of a complaint
under oath and duly supported by the written
consent of at least twenty percent (20%) of the total
membership of the labor organization concerned and
to examine their books of accounts and other
records to determine compliance or non-compliance
with the law and to prosecute any violations of the
law and the union constitution and by-laws:
Provided, That such inquiry or examination shall not
be conducted during the sixty (60)-day freedom
period nor within the thirty (30) days immediately
preceding the date of election of union officials. (As
amended by Section 31, Republic Act No. 6715,
March 21, 1989)
UNION DUES, DEFINED
Are payments to meet the union’s general and
current obligations. Payment must be regular,
periodic and uniform.
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21 LABOR LAW
Bar 1997, 2001, 2002
Art 250 (n), (o)
(n) No special assessment or other extraordinary fees
may be levied upon the members of a labor
organization unless authorized by a written
resolution of a majority of all the members in a
general membership meeting duly called for the
purpose. The secretary of the organization shall
record the minutes of the meeting including the list
of all members present, the votes cast, the purpose
of the special assessment or fees and the recipient
of such assessment or fees. The record shall be
attested to by the president.
(o) Other than for mandatory activities under the
Code, no special assessments, attorney’s fees,
negotiation fees or any other extraordinary fees may
be checked off from any amount due to an employee
without an individual written authorization duly
signed by the employee. The authorization should
specifically state the amount, purpose and
beneficiary of the deduction;
PAYMENT OF ATTORNEYS FEES
Art 228 (b) Appearances and Fees
No attorney’s fees, negotiation fees or similar
charges of any kind arising from any collective
bargaining agreement shall be imposed on any
individual member of the contracting union:
Provided, However, that attorney’s fees may be
charged against union funds in an amount to be
agreed upon by the parties. Any contract, agreement
or arrangement of any sort to the contrary shall be
null and void. (As amended by Presidential Decree
No. 1691, May 1, 1980)
Payment of attorney’s fees is an obligation of the
union, not the employees. Attorney’s fees must be
charged with the union funds, not on individual
members. Art 222 intended to protect employee
against unwarranted practices that would diminish
his compensation without his consent.100
REQUIREMENTS FOR SPECIAL ASSESSMENTS
✓ Authorization by written resolution of general
membership at a general membership meeting
✓ Secretary's record of the minutes
✓ Individual written authorization for check-off
signed by employee
CHECK OFF
The method of deducting from an employer's pay,
the amounts due to the union for fees, fines or
assessments
Substantial compliance not sufficient. Failure of the
union to comply strictly with the requirements set
out by the law invalidates the questioned special
assessment. Substantial compliance is not enough in
100Pacific Banking Corporation v Clave, 128 SCRA 112 (1984).
 LABOR RELATIONS
view of the fact that special assessment will diminish
the compensation of union members.101
Attorney’s fees cannot be deducted without
employee’s written consent. Clearly, attorney’s fees
may not be deducted or checked off from any
amount due to an employee without his written
consent. Xxx No deduction can be made from the
salaries of the concerned employees other than
those mandated by law.102
D.2. COLLECTIVE BARGAINING
Art 218-A(a)
It is the policy of the State:
To promote and emphasize the primacy of free
collective bargaining and negotiations, including
voluntary arbitration, mediation and conciliation, as
modes of settling labor or industrial disputes; Xxx
Art 218-B
To encourage a truly democratic method of
regulating the relations between the employers and
employees by means of agreements freely entered
into through collective bargaining, no court or
administrative agency or official shall have the
power to set or fix wages, rates of pay, hours of
work or other terms and conditions of employment,
except as otherwise provided under this Code. (As
amended by Section 3, Republic Act No. 6715, March
21, 1989)
Constitution; Article XIII, Section 3
Xxx
It shall guarantee the rights of all workers to self-
organization, collective bargaining and negotiations,
and peaceful concerted activities, including the right
to strike in accordance with law. They shall be
entitled to security of tenure, humane conditions of
work, and a living wage. They shall also participate
in policy and decision-making processes affecting
their rights and benefits as may be provided by law.
The State shall promote the principle of shared
responsibility between workers and employers and
the preferential use of voluntary modes in settling
disputes, including conciliation, and shall enforce
their mutual compliance therewith to foster
industrial peace.
Xxx
D.2. A. DUTY TO BARGAIN
COLLECTIVELY
Collective bargaining, democratic means; a mutual
obligation of employer and union. Collective
bargaining, which is defined as negotiation towards
collective agreement, is one of the most democratic
frameworks under the New Labor Code, designed to
stabilize the relation between labor and
management and to create a sound and stable
101Palacol v Ferrer-Calleja, 182 SCRA 710 (1990).
102Gabriel v Sec of Labor, G.R. No. 115949 (2000)
LA SALLIAN COMMISION ON BAR OPERATIONS
22 LABOR LAW
industrial peace. It is a mutual responsibility of the
employer and the Union and is characterized as a
legal obligation.103
CB does not end with negotiation.
Collective bargaining does not end with the
execution of the agreement. It is a continuous
process.
Ensures workers’ participation in decision-making.
CB is a way to ensure workers’ participation in
decision-making. It provides for an orderly procedure
by which each side can seek to present to the other
best possible case for satisfaction of particular
demands and elicits the consent of those who will
have to live under the terms of any agreement
derived from the bargaining process.
WHEN THERE IS ABSENCE OF A CBA
DUTY TO BARGAIN
The mutual obligation of the employer and SEBA to
meet and convene
The purposes of the meeting and convening are:
(1) To negotiate an agreement on wages, hours of
work, and all other terms and conditions of
employment, including mandatory provisions for
grievances and arbitration machineries
(2) To execute a contract incorporating such
agreement
KIND OF COMPLIANCE
“prompt, expeditious, in good faith”
LIMITATIONS
“no compulsion on either party to agree to a
proposal or to make a concession.”
HOW TO BARGAIN IN GOOD FAITH
To deal with each other, openly, with a sincere
desire to negotiate
“Good faith can be inferred from the totality of the
circumstances involved in the negotiation”
EFFECT OF BAD FAITH BARGAINING
The award of adoption of Union proposal as the CBA
(i.e., Kiok Loy v NLRC, Divine Word v SOLE, General
Milling ILU v General Milling Corp).Must not let
management bargain in bad faith without impunity.
Refusal to make counter proposal indication of bad
faith. Refusal to make a counter proposal to the
union’s proposal for CBA negotiation is an indication
of its bad faith. Where the employer did not even
bother to submit an answer to the bargaining
proposals of the union, there is a clear evasion of
the duty to bargain collectively.104
103Kiok
Loy v NLRC, 141 SCRA 179 (1986).
104General Milling ILU v General Milling Corp., G.R. Nos.
183122/183889 (2011).
 LABOR RELATIONS
WHEN THERE IS A CBA
Art 264. Duty to bargain collectively when there
exists a collective bargaining agreement.
When there is a collective bargaining agreement, the
duty to bargain collectively shall also mean that
neither party shall terminate nor modify such
agreement during its lifetime. However, either party
can serve a written notice to terminate or modify
the agreement at least sixty (60) days prior to its
expiration date. It shall be the duty of both parties
to keep the status quo and to continue in full force
and effect the terms and conditions of the existing
agreement during the 60-day period and/or until a
new agreement is reached by the parties.
DUTY TO BARGAIN
All of the duties where there is no CBA yet, plus the
obligation not to terminate or modify the CBA during
its lifetime.
CBA is the law between the parties. There can be no
unilateral modifications in the CBA. 105
Bargaining requires good faith. The duty to bargain
requires that the parties deal with each other with
open and fair minds. A sincere endeavor to overcome
obstacles and difficulties that may arise, so that
employer-employee relations may be stabilized and
industrial strife eliminated, must be apparent.
Respondents cannot invoke the beneficial provisions
of the 1987 CBA but disregard the concessions it
voluntary extended to petitioner. The goal of
collective bargaining is the making of agreements
that will stabilize business conditions and fix fair
standards of working conditions.106
Duty to keep the status quo and to continue in full
force and effect the terms and conditions of the CBA
during the 60-day period and/or until a new
agreement is reached
D.2.B. COLLECTIVE BARGAINING
AGREEMENT (CBA)
Art 218-A(a)
It is the policy of the State:
To promote and emphasize the primacy of free
collective bargaining and negotiations, including
voluntary arbitration, mediation and conciliation, as
modes of settling labor or industrial disputes; Xxx
Art 218-B
To encourage a truly democratic method of
regulating the relations between the employers and
employees by means of agreements freely entered
into through collective bargaining, no court or
administrative agency or official shall have the
power to set or fix wages, rates of pay, hours of
105Faculty
Association of Mapua v CA, 254 SCRA 709 (2007).
106P.I.
Manufacturing Inc. v P.I. Manufacturing Supervisors and
Foremen Association, 543 SCRA 613 (2008).
LA SALLIAN COMMISION ON BAR OPERATIONS
23 LABOR LAW
work or other terms and conditions of employment,
except as otherwise provided under this Code. (As
amended by Section 3, Republic Act No. 6715, March
21, 1989)
Constitution; Article XIII, Section 3
Xxx
It shall guarantee the rights of all workers to self-
organization, collective bargaining and negotiations,
and peaceful concerted activities, including the right
to strike in accordance with law. They shall be
entitled to security of tenure, humane conditions of
work, and a living wage. They shall also participate
in policy and decision-making processes affecting
their rights and benefits as may be provided by law.
The State shall promote the principle of shared
responsibility between workers and employers and
the preferential use of voluntary modes in settling
disputes, including conciliation, and shall enforce
their mutual compliance therewith to foster
industrial peace.
NATURE AND PURPOSE
Collective bargaining, democratic means; a mutual
obligation of employer and union. Collective
bargaining, which is defined as negotiation towards
collective agreement, is one of the most democratic
frameworks under the New Labor Code, designed to
stabilize the relation between labor and
management and to create a sound and stable
industrial peace. It is a mutual responsibility of the
employer and the Union and is characterized as a
legal obligation.107
CB does not end with negotiation.
Collective bargaining does not end with the
execution of the agreement. It is a continuous
process.
Ensures workers’ participation in decision-making.
CB is a way to ensure workers’ participation in
decision-making. It provides for an orderly procedure
by which each side can seek to present to the other
best possible case for satisfaction of particular
demands and elicits the consent of those who will
have to live under the terms of any agreement
derived from the bargaining process.
BARGAINABLE ISSUES
Art 263 Meaning of duty to bargain collectively.
The duty to bargain collectively means the
performance of a mutual obligation to meet and
convene promptly and expeditiously in good faith for
the purpose of negotiating an agreement with
respect to wages, hours of work and all other terms
and conditions of employment including proposals
for adjusting any grievances or questions arising
under such agreement and executing a contract
107Kiok Loy v NLRC, 141 SCRA 179 (1986).
 LABOR RELATIONS
incorporating such agreements if requested by either
party but such duty does not compel any party to
agree to a proposal or to make any concession.
MANDATORY PROVISIONS OF CBA
Bar 1996, 1997
Mandatory subjects of bargaining
• Statutory or mandatory proposals
• Employer’s refusal to negotiate mandatory
subjects of bargaining is ULP.
Examples of mandatory subjects
• Terms and conditions of employment
• Wages and other types of compensation
• Hours of work
• Vacation and holiday; bonus
• Bonuses
• Pensions and retirement plan
• Seniority
• Transfer
• Lay-offs
• Employee workload
• Work load rules and regulations
• Rent of company houses
• Union security arrangement
• Code of conduct
PERMISSIBLE ISSUES
When a subject under discussion is NOT MANDATORY,
it may be discussed if both parties agree, BUT a
strike or lockout may not be used to compel
negotiation or agreement.
Wages, hours of work and all other terms and
conditions of employment. A collective bargaining
agreement refers to the negotiated contract
between a legitimate labor organization and the
employer concerning wages, hours of work and all
other terms and conditions of employment in a
bargaining unit, including mandatory provisions for
grievances and arbitration machineries. As in all
other contracts, the parties in a CBA may establish
such stipulations, clauses, terms and conditions as
they may deem convenient provided they are not
contrary to law, morals, good customs, public order
or public policy. Xxx provision in the CBA condoning
the implementation of the Wage Order is void as
only the Tripartite Wage Productivity Board of the
DOLE could approve exemption of an establishment
from the coverage of a Wage Order.108
Retirement plan valid CBA issue. The fact that the
retirement plan is non-contributory, i.e. employees
contribute nothing to the operation of the plan, does
not make it a non-issue in the CBA negotiations. xxx
Since the retirement plan has been an integral part
of the CBA since 1972, the union’s demand to
increase the benefits due the employees under said
108Manila Fashions, Inc. v NLRC, 264 SCRA 104 (1996).
LA SALLIAN COMMISION ON BAR OPERATIONS
24 LABOR LAW
plan, is a valid CBA issue.109
Bar 2004
CBA INTERPRETATION
How interpreted. The CBA is the law between the
contracting parties — the collective bargaining
representative and the employer-company.
Compliance with a CBA is mandated by the
expressed policy to give protection to labor. In the
same vein, CBA provisions should be "construed
liberally rather than narrowly and technically, and
the courts must place a practical and realistic
construction upon it, giving due consideration to the
context in which it is negotiated and purpose which
it is intended to serve." This is founded on the
dictum that a CBA is not an ordinary contract but
one impressed with public interest. 110
Promise not incorporated in CBA cannot be validly
demanded under the law. It goes without saying,
however, that only provisions embodied in the CBA
should be so interpreted and complied with. Where a
proposal raised by a contracting party does not find
print in the CBA, it is not a part thereof and the
proponent has no claim whatsoever to its
implementation.
Bar 1999, 2001, 2008
The CBA must be implemented in good faith during
its lifetime, even if the parties are negotiating a new
CBA. The implementation may exceed the CBA’s
lifetime if no CBA was agreed upon in which case the
CBA is automatically renewed.
Provisions of the imposed CBA continues to have full
force and effect until a new CBA has been entered
into by the parties. Article 259 mandates the parties
to keep the status quo and to continue in full force
and effect the terms and conditions of the existing
agreement during the 60-day period prior to the
expiration of the old CBA and/or until a new
agreement is reached by the parties.111
BARGAINING PROCEDURE
Art. 261. Procedure in collective bargaining.
The following procedures shall be observed in
collective bargaining:
When a party desires to negotiate an agreement, it
shall serve a written notice upon the other party
with a statement of its proposals. The other party
shall make a reply thereto not later than ten (10)
calendar days from receipt of such notice;
Should differences arise on the basis of such notice
and reply, either party may request for a conference
which shall begin not later than ten (10) calendar
days from the date of request.
109Union of Filipro Employees-Drug v Nestle, G.R. No. 158930-31
(2006).
110SamahanngManggagawasa Top Form v NLRC, 295 SCRA 171 (1998).
111Supra note 87.
 LABOR RELATIONS
If the dispute is not settled, the Board shall
intervene upon request of either or both parties or
at its own initiative and immediately call the parties
to conciliation meetings. The Board shall have the
power to issue subpoenas requiring the attendance
of the parties to such meetings. It shall be the duty
of the parties to participate fully and promptly in
the conciliation meetings the Board may call;
During the conciliation proceedings in the Board, the
parties are prohibited from doing any act which may
disrupt or impede the early settlement of the
disputes; and
The Board shall exert all efforts to settle disputes
amicably and encourage the parties to submit their
case to a voluntary arbitrator. (As amended by
Section 20, Republic Act No. 6715, March 21, 1989)
Art. 262. Duty to bargain collectively in the absence
of collective bargaining agreements.
In the absence of an agreement or other voluntary
arrangement providing for a more expeditious
manner of collective bargaining, it shall be the duty
of employer and the representatives of the
employees to bargain collectively in accordance with
the provisions of this Code.
WHEN TO FILE WRITTEN NOTICE OF INTENT
✓ During the certification period (year)
Notice of intent must be submitted with the Union
proposal.
If there is a CBA in place, written notice must be
served 60 days prior to expiry.
Reply
Employer to reply not later than 10 days after
notice of intent to negotiate was served.
Conferences
How many times? As many as needed
HOW LONG SHOULD A NEGOTIATION BE?
LC 265. x xx Any agreement on such other provisions
of the CBA entered into within 6 months from the
date of expiry of the term of such other provisions as
fixed in the CBA, shall retroact to the day
immediately following such date. If any such
agreement is entered into beyond six months, the
parties shall agree on the duration of retroactivity
thereof x xxx
Agreeing first on the effectivity date of the CBA lifts
or releases the burden of deadline to reach
agreement.
Example: Expiry of the CBA – December 31, 2011 . If
the new CBA is agreed upon within six months from
LA SALLIAN COMMISION ON BAR OPERATIONS
25 LABOR LAW
December 31, 2011(expiry), the effectivity of the
new CBA shall be from January 1, 2012. End of 6-
month period of negotiation – June 30, 2012. If the
new CBA is agreed upon beyond June 30, 2012, the
effectivity of the new CBA shall be agreed upon by
the parties.
Conferences may either result in an agreement or a
deadlock.
If there is a deadlock, a notice of strike or lock-out
(NSL) may be filed as the case may be;
If no NSL has been filed:
✓ NCMB Conciliation. At the request of any of the
parties, the NCMB may interfere for preventive
mediation.
✓ The NCMB shall exert all efforts to settle the
dispute.
The conciliator is not a judge, he shall not rule on
the dispute.
Information obtained in the conciliation proceedings
are privileged communication. It cannot be used in
any NLRC litigation.
During conciliation, parties are prevented from doing
any acts that could prevent settlement of the
dispute or could be disruptive. This is to give the
conciliator a chance to really settle the dispute.
If not resolved in conciliation, the deadlock may
result to:
(1) Voluntary arbitration
(2) Assumption of jurisdiction (AJ) of the SOLE
(3) Strike or lock out
Courts are not to interfere until there is a showing
that the SOLE abused his discretion. Bargaining is not
equivalent to an adversarial litigation when the
rights and obligations are delineated and remedies
applied – it is simply a process of finding a
reasonable solution to a conflict and harmonizing
opposing positions into a fair and reasonable
compromise.112
CBA resulting from an AJ or VA, need not ratified.
But CBA still needs to be posted and registered with
the DOLE.
Art. 265. Terms of a collective bargaining
agreement.
Any Collective Bargaining Agreement that the parties
may enter into shall, insofar as the representation
aspect is concerned, be for a term of five (5) years.
No petition questioning the majority status of the
incumbent bargaining agent shall be entertained and
no certification election shall be conducted by the
Department of Labor and Employment outside of the
112Caltex Refinery Employees Association v Brillantes.279 SCRA 218
(1997).
 LABOR RELATIONS
sixty-day period immediately before the date of
expiry of such five-year term of the Collective
Bargaining Agreement. All other provisions of the
Collective Bargaining Agreement shall be
renegotiated not later than three (3) years after its
execution. Any agreement on such other provisions
of the Collective Bargaining Agreement entered into
within six (6) months from the date of expiry of the
term of such other provisions as fixed in such
Collective Bargaining Agreement, shall retroact to
the day immediately following such date. If any such
agreement is entered into beyond six months, the
parties shall agree on the duration of retroactivity
thereof. In case of a deadlock in the renegotiation of
the Collective Bargaining Agreement, the parties
may exercise their rights under this Code. (As
amended by Section 21, Republic Act No. 6715,
March 21, 1989)
Purpose of Art. 265: to prevent a situation where no
CBA is in force
RULES IN THE ADMINISTRATION AND
IMPLANTATION OF THE CBA
During the lifetime of the CBA, it is the law between
the parties. Those who are entitled to its benefits
can invoke its provisions. (Faculty Assoc. of Mapua v.
CA; PI Mfg. Inc. v. PI Mfg. Supervisors and Foremen
Assoc.; Pantranco North Express, Inc. v. NLRC)
But CBA provisions are not beyond judicial
determination if impugned.
Manila Fashions v NLRC (1996).The CBA may not
provide for substandard benefits.
Samahang Manggagawa sa Top Form Manufacturing v
NLRC (1998). Only provisions embodied in the CBA
should be so interpreted and complied with. Where
a proposal raised by a contracting party does not
find print in the CBA, it is not a part thereof and
the proponent has no claim whatsoever to its
implementation.
The provisions of the CBA should be interpreted in
accordance with their literal meaning. (Free and
Independent Workers Union v. Norkis Trading
Company, Inc.; Dole Phils. v. Pawisng Makabayang
Obrero)
No interpretation of CBA provisions if their meaning
is clear.
United Kimberly Clark EU v UKC, Inc (2006). In case
of ambiguity of the terms of a CBA, and there is
doubt as to the intention of the parties, resort to
evidence extrinsic of the CBA to determine the full
agreement intended by the parties. Evidence
aliunde may consist of the minutes of negotiation,
contemporaneous and subsequent practices, etc.
LA SALLIAN COMMISION ON BAR OPERATIONS
26 LABOR LAW
EXTRINSIC EVIDENCE: Minutes of CBA negotiations
Contemporaneous and subsequent practices or acts
in the implementation of the CBA
In case of doubt or ambiguity, apply:
Art. 1702 of the Civil Code, which provides that all
labor legislation and labor contracts shall be
construed in favor of safety and decent living for the
laborer, and;
Art. 4 of the Labor Code that says all doubts shall be
resolved in favor of labor.(Holy Cross of Davao
College, Inc. v. Holy Cross of Davao College Faculty
Union – KAMAPI; Honda Phils., Inc. v. Samahan ng
Manggagawa sa Honda)
Associated Labor Unions – VIMCONTU v NLRC (1991).
Unless expressly assumed, labor contracts such as
CBAs are not enforceable against a transferee of an
enterprise, labor contracts being in personam, thus
binding only between the parties.
It is the bargaining unit, which is the true party in
interest to a CBA. Thus, a shift in the union's
allegiance after the execution of the CBA does not
affect the binding effect of a contract up to its
expiration date.
There must be express assumption of liability for
terms and conditions of CBA for transferee of
enterprise to be liable.
CBA ENFORCEMENT
Art. 267. Exclusive bargaining representation and
workers’ participation in policy and decision-
making.
The labor organization designated or selected by the
majority of the employees in an appropriate
collective bargaining unit shall be the exclusive
representative of the employees in such unit for the
purpose of collective bargaining. However, an
individual employee or group of employees shall
have the right at any time to present grievances to
their employer.
Any provision of law to the contrary
notwithstanding, workers shall have the right,
subject to such rules and regulations as the
Secretary of Labor and Employment may
promulgate, to participate in policy and decision-
making processes of the establishment where they
are employed insofar as said processes will directly
affect their rights, benefits and welfare. For this
purpose, workers and employers may form labor-
management councils: Provided, That the
representatives of the workers in such labor-
management councils shall be elected by at least the
majority of all employees in said establishment. (As
amended by Section 22, Republic Act No. 6715,
March 21, 1989)
 LABOR RELATIONS
MANDATORY PROVISIONS OF CBA
✓ Grievance procedure
✓ Voluntary Arbitration
✓ No-strike, no-lock out clause
GRIEVANCE PROCEDURE
Art. 273. Grievance machinery and voluntary
arbitration.
The parties to a Collective Bargaining Agreement
shall include therein provisions that will ensure the
mutual observance of its terms and conditions. They
shall establish a machinery for the adjustment and
resolution of grievances arising from the
interpretation or implementation of their Collective
Bargaining Agreement and those arising from the
interpretation or enforcement of company personnel
policies.
All grievances submitted to the grievance machinery
which are not settled within seven (7) calendar days
from the date of its submission shall automatically
be referred to voluntary arbitration prescribed in the
Collective Bargaining Agreement.
For this purpose, parties to a Collective Bargaining
Agreement shall name and designate in advance a
Voluntary Arbitrator or panel of Voluntary
Arbitrators, or include in the agreement a procedure
for the selection of such Voluntary Arbitrator or
panel of Voluntary Arbitrators, preferably from the
listing of qualified Voluntary Arbitrators duly
accredited by the Board. In case the parties fail to
select a Voluntary Arbitrator or panel of Voluntary
Arbitrators, the Board shall designate the Voluntary
Arbitrator or panel of Voluntary Arbitrators, as may
be necessary, pursuant to the selection procedure
agreed upon in the Collective Bargaining Agreement,
which shall act with the same force and effect as if
the Arbitrator or panel of Arbitrators has been
selected by the parties as described above.
HOW ENFORCEMENT/IMPLEMENTATION
EFFECTED
Ordinarily: Through grievance machinery; Voluntary
arbitration
Extraordinarily: Strike; ULP complaint with the
NLRC
GRIEVANCE, DEFINED
Any dispute between employee and union as regards:
Interpretation of the CBA
Interpretation of company personnel policies
Implication: VA still has jurisdiction even if there is
no SEBA or CBA.
Any claim by either party that the other party is
violating any provision of the CBA or company
LA SALLIAN COMMISION ON BAR OPERATIONS
27 LABOR LAW
personnel policies
GRIEVANCE MACHINERY, DEFINED
“grievance procedure”
Series of formal steps agreed upon by parties to a
CBA for the resolution of grievances
VOLUNTARY ARBITRATION, DEFINED
Reference of a dispute to an impartial third party
designated by the parties
List of VAs are found in the NCMB
Disputes that may be brought to VA:
1. unresolved grievances by agreement of the
parties
2. ULPs and bargaining deadlocks
Compulsory Arbitration, defined
The process of settlement of labor disputes by a
government agency which has authority to
investigate and make an award which is binding on
the parties.
Consent of the parties is not required.
It is government agency who will hear and rule on
the case.
VOLUNTARY ARBITRATOR, DEFINED
refers to any person accredited by the NCMB as such,
or any person named or designated in the CBA by the
parties to act as their voluntary arbitrator, or one
chosen by the parties pursuant to a selection
procedure agreed upon in the CBA.113
May recourse to grievance procedure be dispensed
with?
Yes. If union is not interested in a particular
grievance, union should not participate anymore, the
employee is then allowed to skip the grievance
procedure. 114
Notice of strike illegal, dispute may be resolved via
grievance procedure or VA.115
Under voluntary arbitration, xxx, referral of a
dispute by the parties is made, pursuant to a
voluntary arbitration clause in their collective
agreement, to an impartial third person for a final
and binding resolution.116
The essence of voluntary arbitration, after all, is
that it is by agreement of the parties, rather than
compulsion of law, that a matter is submitted for
arbitration. 4 It does not matter that the person
chosen as arbitrator is a labor arbiter who, under
113 IR, Book V, Rule I, Sec. 1(aaa)
114Atlas Farms v NLRC, G.R. No. 142244 (2002).
115USAEU-FFW v CA, G.R. No. 169632 (2006).
116Luzon Dev’t Bank v Assoc of Luzon Dev’t Bank Employees, 249
SCRA 162 (1995).
 LABOR RELATIONS
Art. 217 of the Labor Code, is charged with the
compulsory arbitration of certain labor cases. There
is nothing in the law that prohibits these labor
arbiters from also acting as voluntary arbitrators as
long as the parties agree to have him hear and
decide their dispute.117
BASIS AND RATIONALE FOR VOLUNTARY
ARBITRATION
Art. 273. Grievance machinery and voluntary
arbitration.
The parties to a Collective Bargaining Agreement
shall include therein provisions that will ensure the
mutual observance of its terms and conditions. They
shall establish a machinery for the adjustment and
resolution of grievances arising from the
interpretation or implementation of their Collective
Bargaining Agreement and those arising from the
interpretation or enforcement of company personnel
policies.
All grievances submitted to the grievance machinery
which are not settled within seven (7) calendar days
from the date of its submission shall automatically
be referred to voluntary arbitration prescribed in the
Collective Bargaining Agreement.
For this purpose, parties to a Collective Bargaining
Agreement shall name and designate in advance a
Voluntary Arbitrator or panel of Voluntary
Arbitrators, or include in the agreement a procedure
for the selection of such Voluntary Arbitrator or
panel of Voluntary Arbitrators, preferably from the
listing of qualified Voluntary Arbitrators duly
accredited by the Board. In case the parties fail to
select a Voluntary Arbitrator or panel of Voluntary
Arbitrators, the Board shall designate the Voluntary
Arbitrator or panel of Voluntary Arbitrators, as may
be necessary, pursuant to the selection procedure
agreed upon in the Collective Bargaining Agreement,
which shall act with the same force and effect as if
the Arbitrator or panel of Arbitrators has been
selected by the parties as described above.
The decision of a VA chosen by the parties is final
and executory and not appealable. This principle
strengthens the purpose of arbitration in preserving
industrial peace and in avoiding unnecessary
litigation between the parties.118
PROCESS ENCOURAGEMENT/PROMOTION
117Manila Central Line v Manila Central Line FWU-NFL, 290 SCRA 690
(1998).
118Eternet Employees v De Veyra, 189 SCRA 752 (1990).
LA SALLIAN COMMISION ON BAR OPERATIONS
28 LABOR LAW
ARBITRABLE ISSUES
Bar 2013
Art. 274. Jurisdiction of Voluntary Arbitrators or
panel of Voluntary Arbitrators.
The Voluntary Arbitrator or panel of Voluntary
Arbitrators shall have original and exclusive
jurisdiction to hear and decide all unresolved
grievances arising from the interpretation or
implementation of the Collective Bargaining
Agreement and those arising from the interpretation
or enforcement of company personnel policies
referred to in the immediately preceding article.
Accordingly, violations of a Collective Bargaining
Agreement, except those which are gross in
character, shall no longer be treated as unfair labor
practice and shall be resolved as grievances under
the Collective Bargaining Agreement. For purposes of
this article, gross violations of Collective Bargaining
Agreement shall mean flagrant and/or malicious
refusal to comply with the economic provisions of
such agreement.
The Commission, its Regional Offices and the
Regional Directors of the Department of Labor and
Employment shall not entertain disputes, grievances
or matters under the exclusive and original
jurisdiction of the Voluntary Arbitrator or panel of
Voluntary Arbitrators and shall immediately dispose
and refer the same to the Grievance Machinery or
Voluntary Arbitration provided in the Collective
Bargaining Agreement.
Art. 275. Jurisdiction over other labor disputes.
The Voluntary Arbitrator or panel of Voluntary
Arbitrators, upon agreement of the parties, shall
also hear and decide all other labor disputes
including unfair labor practices and bargaining
deadlocks.
ARBITRATOR
Selection
It does not matter that the person chosen as
arbitrator is a labor arbiter who, under Art. 223 of
the Labor Code, is charged with the compulsory
arbitration of certain labor cases. There is nothing in
the law that prohibits these labor arbiters from also
acting as voluntary arbitrators as long as the parties
agree to have him hear and decide their dispute.119
Jurisdiction
The original and exclusive jurisdiction of the labor
arbiter over unfair labor practices, termination
disputes, and claims for damages cannot be
arrogated into the powers of voluntary arbitrators in
the absence of an express agreement between the
union and the company.120
119Manila Central Line FWU v Manila Central Line Corp, 209 SCRA 134
(2007).
120Lantex Industries v CA, 529 v 631 (2007).
 LABOR RELATIONS
The Voluntary Arbitrator or Panel of Voluntary
Arbitrators will have original and exclusive
jurisdiction over money claims 'arising from the
interpretation or implementation of the Collective
Bargaining Agreement and, those arising from the
interpretation or enforcement of company personnel
policies', under Article 267."121
Unresolved grievances. The law grants to voluntary
arbitrators original and exclusive jurisdiction to hear
and decide all unresolved grievances arising from the
interpretation or implementation of the Collective
Bargaining Agreement and those arising from the
interpretation or enforcement of company personnel
policies (Art. 274, Labor Code).122
Nature of office and function
Quasi-judicial. A voluntary arbitrator, whether
acting solely or in a panel, enjoys in law the status
of a quasi-judicial agency; hence, his decisions and
awards are appealable to the CA.123
An arbitrator is confined to the interpretation and
application of collective bargaining agreement. 124
Art. 276. Procedures.
The Voluntary Arbitrator or panel of Voluntary
Arbitrators shall have the power to hold hearings,
receive evidences and take whatever action is
necessary to resolve the issue or issues subject of
the dispute, including efforts to effect a voluntary
settlement between parties.
All parties to the dispute shall be entitled to attend
the arbitration proceedings. The attendance of any
third party or the exclusion of any witness from the
proceedings shall be determined by the Voluntary
Arbitrator or panel of Voluntary Arbitrators. Hearing
may be adjourned for cause or upon agreement by
the parties.
Unless the parties agree otherwise, it shall be
mandatory for the Voluntary Arbitrator or panel of
Voluntary Arbitrators to render an award or decision
within twenty (20) calendar days from the date of
submission of the dispute to voluntary arbitration.
The award or decision of the Voluntary
Arbitrator or panel of Voluntary Arbitrators shall
contain the facts and the law on which it is based. It
shall be final and executory after ten (10) calendar
days from receipt of the copy of the award or
decision by the parties.
Upon motion of any interested party, the Voluntary
Arbitrator or panel of Voluntary Arbitrators or the
121DelMonte v Saldivar, 504 SCRA 192 (2006).
122Sanyo Philippines Workers Union v Canizares, 211 SCRA 361
(1992).
123Leyte IV Electric Coop v Leyeco IV EU, 537 SCRA 154 (2007).s
124Kimberly Clark EU v Kimberly Clark, 484 SCRA 187 (2006).
LA SALLIAN COMMISION ON BAR OPERATIONS
29 LABOR LAW
Labor Arbiter in the region where the movant
resides, in case of the absence or incapacity of the
Voluntary Arbitrator or panel of Voluntary
Arbitrators, for any reason, may issue a writ of
execution requiring either the sheriff of the
Commission or regular courts or any public official
whom the parties may designate in the submission
agreement to execute the final decision, order or
award.
INTERPRETATION AGREEMENT
It is settled that in order to ascertain the intention
of the contracting parties, the Voluntary Arbitrator
shall principally consider their contemporaneous and
subsequent acts as well as their negotiating and
contractual history and evidence of past practices.125
Awards and orders
VA may order grant of benefits as part of his
authority to interpret a CBA. Moreover, petitioner-
company's objection to the authority of the
Voluntary Arbitrator to direct the commutation of
the unenjoyed portion of the sick leave with pay
benefits of intermittent workers in his decision is
misplaced. Article 261 of the Labor Code is clear.
The questioned directive of the herein public
respondent is the necessary consequence of the
exercise of his arbitral power as Voluntary Arbitrator
under Article 261 of the Labor Code "to hear and
decide all unresolved grievances arising from the
interpretation or implementation of the Collective
Bargaining Agreement."126
It may also be pertinent to state that even if the
proceedings herein be considered as in the nature of
a voluntary arbitration as so held by the Arbitrator in
his award, for reasons not quite clear from the
records, the award appealed from shall be final and
binding between the parties. The award of voluntary
Arbitrators acting within the scope of their authority
determines the rights of the parties, and their
decisions have the same legal effects as a judgment
of the Court. Such decisions on matters of fact and
law are conclusive, and all matters in the award are
thenceforth res judicata, on the theory that the
matter has been adjudged by the tribunal which the
parties have agreed to make final as tribunal of last
resort.127
FINALITY AND EXECUTION OF AWARDS
Article 268-A of the Labor Code makes voluntary
arbitration awards or decisions final and executory.
128
The award or decision of the Voluntary Arbitrator or
panel of Voluntary Arbitrators shall be final and
executory after ten (10) calendar days from receipt
125Lepanto Consolidated v Lepanto Local Staff Union, 562 SCRA 495
(2008).
126Davao Integrated v Abarquez, 220 SCRA 197 (1993).
127VolkschelLabor Union v NLRC, 98 SCRA 314 (1980).
128Imperial Textile v Sampang, 219 SCRA 651 (1993).
 LABOR RELATIONS
of the copy of the award or decision by the
parties.129
APPEAL
Appeal to the CA via Rule 43, Rules of Court. The
decision or award of the voluntary arbitrator or
panel of arbitrators should likewise be appealable to
the Court of Appeals, in line with the procedure
outlined in Revised Administrative Circular No. 1-95,
just like those of the quasi-judicial agencies, boards
and commissions enumerated therein.130
COSTS
Art. 277. Cost of voluntary arbitration and Voluntary
Arbitrator’s fee.
The parties to a Collective Bargaining Agreement
shall provide therein a proportionate sharing scheme
on the cost of voluntary arbitration including the
Voluntary Arbitrator’s fee. The fixing of fee of
Voluntary Arbitrators, whether shouldered wholly by
the parties or subsidized by the Special Voluntary
Arbitration Fund, shall take into account the
following factors:
✓ Nature of the case;
✓ Time consumed in hearing the case;
✓ Professional standing of the Voluntary
Arbitrator;
✓ Capacity to pay of the parties; and
✓ Fees provided for in the Revised Rules of Court.
NO STRIKE-NO LOCKOUT CLAUSE
No strike clause applicable only to economic strikes.
“no strike, no lock-out” provision in the CBA is a
valid stipulation but may be invoked only by
employer when the strike is economic in nature or
one which is conducted to force wage or other
concessions from the employer that are not
mandated to be granted by law itself. It would
inapplicable to prevent a strike which is grounded on
unfair labor practice.131
DURATION
Bar 2012
Duration of CBA
5 years
term of the bargaining agent (SEBA)
representation aspect/union recognition
3 years
All other provisions
Bar 2000, 2009
129Coca-Cola Union v Coca-Cola, 464 SCRA 507 (2005).
130Luzon Dev’t Bank v Assn of Luzon Dev’t Bank Employees, 294
SCRA 162 (1995).
131Panay Electric v NLRC, 248 SCRA 688 (1995).
LA SALLIAN COMMISION ON BAR OPERATIONS
30 LABOR LAW
SUBSTITUTIONARY DOCTRINE
New SEBA to implement existing CBA until
negotiations may be validly had.
Company may not be compelled to early negotiation.
WHO BENEFITS FROM EXTENDED CBA?
All members of the bargaining unit.
When a CBA is entered into by union representing
the employees and employer, even non-union
member employees are entitled to the benefits.132
All members of the BU are included in the CBA. It is
discrimination to exclude them from the application
of the CBA.133
ARBITRAL AWARDS
Imposed by the NLRC, SOLE, SC
Bar 1994, 2001
EFFECTIVITY OF ARBITRAL AWARDS
Retroacts to such time agreed upon by the employer
and union.
If there is no agreement and awarded beyond the 6-
month period =First day after the 6-month period
If there is no agreement and awarded within the 6-
month period =first day after expiry of the CBA
Extension of 5-year term of CBA as regards
representation
Can parties agree to extend the term for more than 5
years? General Rule: No. Express provision, Art 259-A.
Exception: In Rivera v Espiritu (2002) ---where PALEA
and PAL agreed to suspend the existing CBA between
them with the condition, among others, that PALEA
is to be recognized as SEBA during the period of the
suspension of the CBA --- up to 10 years was allowed,
by agreement of the parties.
Implications:
PALEA was recognized as SEBA for 10 years.
Parties by agreement may install the SEBA
indefinitely.
Parties by agreement may suspend CBA even for 10
years.
The right to CB includes the right to suspend it.
UNION SECURITY CLAUSES
Bar 1995, 2004, 2011, 2012
Termination of employment pursuant to Union
Security Clause; requisites:
the union security clause must be applicable
the union is requesting for the enforcement of the
union security provision in the CBA
132New Pacific Timber v NLRC, G.R. No. 124224 (2000).
133Mactan Workers v Aboitiz, 45 SCRA 577 (1972).
 LABOR RELATIONS
there is sufficient evidence to support union’s
decision to expel the employee from the union134
Courts must look into substantial evidence to
warrant the dismissal of an employee pursuant to
Union Security Clause.135
CHECK-OFF
No requirement of written authorization from non-
union employees is needed to effect a valid check
off. LC 259(e) makes it explicit that LC
250(o), requiring written authorization, is
inapplicable to non-union members, especially in
this case where the non-union employees receive
several benefits under the CBA. 136
E. UNFAIR LABOR PRACTICE
E.1. NATURE, ASPECTS
DEFINITION AND GENERAL CONCEPT
Bar 1996, 2005
Art. 219 (k)
"Unfair labor practice" means any unfair labor
practice as expressly defined by the Code.
Art. 258. Concept of unfair labor practice and
procedure for prosecution thereof.
Unfair labor practices violate the constitutional right
of workers and employees to self-organization, are
inimical to the legitimate interests of both labor and
management, including their right to bargain
collectively and otherwise deal with each other in an
atmosphere of freedom and mutual respect, disrupt
industrial peace and hinder the promotion of healthy
and stable labor-management relations.
Consequently, unfair labor practices are not only
violations of the civil rights of both labor and
management but are also criminal offenses against
the State which shall be subject to prosecution and
punishment as herein provided.
Subject to the exercise by the President or by the
Secretary of Labor and Employment of the powers
vested in them by Articles 263 and 264 of this Code,
the civil aspects of all cases involving unfair labor
practices, which may include claims for actual,
moral, exemplary and other forms of damages,
attorney’s fees and other affirmative relief, shall be
under the jurisdiction of the Labor Arbiters. The
Labor Arbiters shall give utmost priority to the
hearing and resolution of all cases involving unfair
labor practices. They shall resolve such cases within
thirty (30) calendar days from the time they are
134Alabang
Country Club v NLRC, 545 SCRA 351 (2008).
135Del Monte v Zaldivar, G.R. No. 158620 (2006).
136Del Pilar Academy v Del Pilar Academy EU (2008).
LA SALLIAN COMMISION ON BAR OPERATIONS
31 LABOR LAW
submitted for decision.
Recovery of civil liability in the administrative
proceedings shall bar recovery under the Civil Code.
No criminal prosecution under this Title may be
instituted without a final judgment finding that an
unfair labor practice was committed, having been
first obtained in the preceding paragraph. During the
pendency of such administrative proceeding, the
running of the period of prescription of the criminal
offense herein penalized shall be considered
interrupted: Provided, however, that the final
judgment in the administrative proceedings shall not
be binding in the criminal case nor be considered as
evidence of guilt but merely as proof of compliance
of the requirements therein set forth. (As amended
by Batas PambansaBilang 70, May 1, 1980 and later
further amended by Section 19, Republic Act No.
6715, March 21, 1989)
ULP may only be committed in the context of employer-
employee relationship.
ULP violates the rights to:
✓ Self-organization
✓ Collective bargaining
✓ Concerted activities
ULPs are not only civil rights violations but are also
criminal offenses against the State.
ULPs are those expressly defined by the labor code
(LC 219-K):
✓ Those in LC 259 > ULP of employers
✓ Those in LC 260 > ULP of LOs
✓ Those in LC 263 > violations of CBA gross in
character
Any violations that relate to the exercise of the right
to self-organization and collective bargaining
ULP VIS-À-VIS MANAGEMENT PREROGATIVE;
EXCEPTION
Art. 278 (g)
(g) When, in his opinion, there exists a labor dispute
causing or likely to cause a strike or lockout in an
industry indispensable to the national interest, the
Secretary of Labor and Employment may assume
jurisdiction over the dispute and decide it or certify
the same to the Commission for compulsory
arbitration. Such assumption or certification shall
have the effect of automatically enjoining the
intended or impending strike or lockout as specified
in the assumption or certification order. If one has
already taken place at the time of assumption or
certification, all striking or locked out employees
shall immediately return-to-work and the employer
shall immediately resume operations and readmit all
workers under the same terms and conditions
 LABOR RELATIONS 32 LABOR LAW

prevailing before the strike or lockout. The REQUISITES OF ULP

Secretary of Labor and Employment or the
EMPLOYER – EMPLOYEE RELATIONSHIP
Commission may seek the assistance of law
Sterling Products Int’l, Inc. v Sol, 7 SCRA 446
enforcement agencies to ensure compliance with
(1963).FACTS: As a regular radio monitor of
this provision as well as with such orders as he may
petitioners, respondent Sol was directed to listen to
issue to enforce the same.
certain broadcasts and was given instructions when
to listen and what to listen to, petitioner naming the
In line with the national concern for and the highest
stations to be listened to, the hours of broadcasts,
respect accorded to the right of patients to life and
and the days when listening was to be done. HELD:
health, strikes and lockouts in hospitals, clinics and
Mere fact that while performing the duties assigned
similar medical institutions shall, to every extent
to her she was under the supervision of petitioners,
possible, be avoided, and all serious efforts, not only
did not make her an independent contractor,
by labor and management but government as well,
because the latter is one who does not receive
be exhausted to substantially minimize, if not
specific instructions as to what to do and how to do
prevent, their adverse effects on such life and
it. Besides, a contractor is not entitled to vacation
health, through the exercise, however legitimate, by
leave, bonus, and additional wages, and respondent
labor of its right to strike and by management to
Sol’s act in demanding these privileges are
lockout. In labor disputes adversely affecting the
inconsistent with the claim of petitioner that she
continued operation of such hospitals, clinics or
was an independent contractor and not an
medical institutions, it shall be the duty of the
employee.
striking union or locking-out employer to provide and
maintain an effective skeletal workforce of medical
Petitioner is not the employer of the security
and other health personnel, whose movement and
watchmen hired by the Marine Security Agency. It is
services shall be unhampered and unrestricted, as
the agency that recruits, hires, assigns the works of
are necessary to insure the proper and adequate
its watchmen. Hence, a watchman cannot perform
protection of the life and health of its patients, most
any security service for petitioner’s vessels unless
especially emergency cases, for the duration of the
the agency first accepts him as its watchman. With
strike or lockout. In such cases, therefore, the
respect to his wages, the amount to be paid to a
Secretary of Labor and Employment may
security guard is beyond the power of the petitioner
immediately assume, within twenty four (24) hours
to determinate. Xxx it is the agency who quantifies
from knowledge of the occurrence of such a strike or
and pays the wages to which a watchman is entitled.
lockout, jurisdiction over the same or certify it to
Neither does petitioner have the power to dismiss
the Commission for compulsory arbitration. For this
the security guards. 138
purpose, the contending parties are strictly enjoined
to comply with such orders, prohibitions and/or
Act must be specifically defined by law
injunctions as are issued by the Secretary of Labor
and Employment or the Commission, under pain of
immediate disciplinary action, including dismissal or GENERAL PROHIBITION
loss of employment status or payment by the Art 259. ULP of Art 260. ULP of LOs
locking-out employer of backwages, damages and Employers
other affirmative relief, even criminal prosecution a. To interfere a. To restrain or coerce
against either or both of them. with,restrain or coerce employees in the
employees in the exercise of their right to
The foregoing notwithstanding, the President of the exercise of their right to self-organization;
Philippines shall not be precluded from determining self-organization;
the industries that, in his opinion, are indispensable
to the national interest, and from intervening at any Effect of dismissal of union leaders = made union
time and assuming jurisdiction over any such labor leaderless
dispute in order to settle or terminate the same. Dismissal amounted to restrain and the dismissal was
tainted with discrimination. This would constitute
ULP on the basis of Art 259(a) or under general
Law on ULP not intended to hamper management prohibition.139
prerogatives. Law on unfair labor practices is not
intended to deprive employers their fundamental Petitioner is guilty of ULP from its refusal to
right to prescribe and enforce rules as they honestly bargain, to their acts of economic inducements
believe to be necessary to the proper, productive resulting in the promotion of those who withdrew
and profitable operation of their business. 137 from the union, use of armed guards to prevent the
organizers to come in, and the dismissal of the
union officials and members. Once cannot but

138American President Lines v Clave, 114 SCRA 826 (1982).

137Philcom EU v Philcom, G.R. No. 144315 (2006). 139Republic Savings Bank v CIR, 21 SCRA 226 (1967).

LA SALLIAN COMMISION ON BAR OPERATIONS

 LABOR RELATIONS
conclude that respondents did not want a union in
their hacienda, a clear interference in the right of
the workers to self-organization.140
Where the ill-timed resignation from the union
members indicate that the employer had interfered
with the right of its employees to self-organization,
the company may be found guilty of ULP. 141
E.2. ULP BY EMPLOYERS
Bar 1996, 2009, 2011, 2012
Art. 259. Unfair labor practices of employers.
It shall be unlawful for an employer to commit any
of the following unfair labor practice:
(1) To interfere with, restrain or coerce employees
in the exercise of their right to self-
organization;
(2) To require as a condition of employment that a
person or an employee shall not join a labor
organization or shall withdraw from one to
which he belongs;
(3) To contract out services or functions being
performed by union members when such will
interfere with, restrain or coerce employees in
the exercise of their rights to self-organization;
(4) To initiate, dominate, assist or otherwise
interfere with the formation or administration
of any labor organization, including the giving of
financial or other support to it or its organizers
or supporters;
(5) To discriminate in regard to wages, hours of
work and other terms and conditions of
employment in order to encourage or discourage
membership in any labor organization. Nothing
in this Code or in any other law shall stop the
parties from requiring membership in a
recognized collective bargaining agent as a
condition for employment, except those
employees who are already members of another
union at the time of the signing of the collective
bargaining agreement. Employees of an
appropriate bargaining unit who are not
members of the recognized collective bargaining
agent may be assessed a reasonable fee
equivalent to the dues and other fees paid by
members of the recognized collective bargaining
agent, if such non-union members accept the
benefits under the collective bargaining
agreement: Provided, that the individual
authorization required under Article 242,
paragraph (o) of this Code shall not apply to the
non-members of the recognized collective
bargaining agent;
(6) To dismiss, discharge or otherwise prejudice or
discriminate against an employee for having
given or being about to give testimony under
this Code;
140Hacienda Fatima v National Federation of Sugarcane Workers,
G.R. No. 149440 (2003).
141General Milling v CA, G.R. No. 146728 (2004).
LA SALLIAN COMMISION ON BAR OPERATIONS
33 LABOR LAW
(7) To violate the duty to bargain collectively as
prescribed by this Code;
(8) To pay negotiation or attorney’s fees to the
union or its officers or agents as part of the
settlement of any issue in collective bargaining
or any other dispute; or
(9) To violate a collective bargaining agreement.
1. INTERFERENCE, RESTRAINT AND
COERCION
An act which restrains, coerces, or interferes with
employees in the exercise of their right to self-
organization is an Unfair Labor Practice.
A. INTERROGATION
Scotty’s Department Store v Micaller (1956)142.
Employer interrogation of union members while it is
a privilege should not hamper the members’ right to
self-organization.
Philippine Steam Navigation v Philippine Marine
Officers Guild (1965). The rule in this jurisdiction is
that subjection by the company of its employees to a
series of questioning regarding their membership in
the union or their union activities, in such a way as
to hamper the exercise of free choice of their part,
constitutes ULP. 143
B. SPEECH, ESPIONAGE, ECONOMIC COERCION
Insular Life Assurance Co EU v Insular Life Assurance
Co., Ltd (1971). 144 It is not necessary that the
employees are coerced or restrained, the reasonable
tendency test will determine whether the employer
has engaged in the conduct that tends to interfere
with employees’ free exercise of right to self-
organization.
Individual bargaining is not allowed.
When employer negotiates of attempts to negotiate
with his employees individually in connection with
changes in the agreement is ULP.
When act of company president in writing letters to
strikers urging them to return to work is an
interference with the right to CB. Individual
solicitation is also interference.
C. CONCERTED ACTIVITIES
Philippine Blooming Mills EO v PBM (1973).145
Concerted activity need not be rooted in CBA
matters, but may be by reason of mutual aid and
protection.
14299 Phil 762 (1946).
14315 SCRA 174 (1965).
14437 SCRA 243 (1971).
14551 SCRA 189 (1973).
 LABOR RELATIONS
Employer who refuses its employees to join
demonstration against police abuses is guilty of ULP.
Employees who demonstrated did not violate CBA, as
it was in the exercise of their freedom of expression,
guaranteed by the Bill of Rights.
Letter containing promises of benefits to the
employees in order to entice them to return to work
is not protected by the free speech provisions of the
Constitution.
the free speech protection is inapplicable where the
expression of opinion by the employer of his agent
contains a promise of benefit, threats, or reprisal.
Letters should be interpreted according to the
totality of conduct doctrine.
2. YELLOW-DOG CONTRACT
Non-union membership or withdrawal from
membership as a condition of employment
Yellow dog contract/stipulation
“only a yellow dog (coward) would sign such.”
A promise exacted from workers as a condition of
employment that they are not to belong to, or
attempt to foster a union during their period of
employment.
Visayan Stevedore v CIR (1967).146 Where the
workers not admitted to work were union members
and the company branch manager had told them
directly that severance of their connection with the
union was the remedy if they wanted to continue
working with the company, there was unfair labor
practice.
3. CONTRACTING OUT TO DISCOURAGE
UNIONISM
Contracting out per se is not ULP. It becomes ULP
when such interfere with, restrain or coerce
employees in the exercise of their right to self-
organization.
Contracting out if motivated to prevent employees
from exercising RSO. An employer’s contracting out
of work is itself an ULP where motivated by the
desire to prevent his employees from organizing and
selecting a collective bargaining representative, rid
himself of union men, or escape his statutory duty to
bargain collectively with his employees’ bargaining
representative.
4. COMPANY DOMINATION OF UNION
Progressive Development v CIR (1977). Where the
14619 SCRA 426 (1967).
LA SALLIAN COMMISION ON BAR OPERATIONS
34 LABOR LAW
dismissal of the employees because of union
activities and not because of company’s alleged
losses was adequately proven, the employer is guilty
of ULP.
When financial assistance does not constitute union
domination or union interference or ULP:
Company to provide union, a union office
Company granting union leaves or privileges
Company granting assistance for conduct of union
education seminars
For as long as financial assistance is publicly
disclosed and ratified by the members, it is valid.
5. DISCRIMINATION TO
ENCOURAGE/DISCOURAGE UNIONISM
What the law prohibits is discrimination to
encourage or discourage union membership.
Discouraging membership in a labor organization
includes not only discouraging adhesion to union
membership but also discouraging participation in
union activities such as a legitimate strike.
ULPs in the form of discriminatory dismissal were
found where only unionists were permanently
dismissed while non-unionists were not.
Unequal treatment based on union or non-union
membership
Purpose is to ensure that employees are given equal
treatment whether they are union members or not.
TEST OF DISCRIMINATION
It is necessary that the underlying reason for the
discharge is established.
The discharge must be made with proper motive.
Where circumstances establish a discriminatory
motive on the part of the employer, the assignment
of a just cause will be unavailing. If it can be
established that the true and basic inspiration for
the employer’s act is derived from the employees’
union activities, the assignment by the employer of
another reason, whatever its semblance of validity,
is unavailing.
An inference that the discharge of an employee was
motivated by his union activity must be based upon
evidence, direct or circumstantial, not upon mere
suspicion.
 LABOR RELATIONS
6. RETALIATION TESTIMONY AGAINST
EMPLOYER/INDIRECT DISCRIMINATION
What is prohibited to be done directly shall not be
allowed to be done indirectly. Thus, the following
have been held as ULP:
(1) Dismissal of a laborer on account of union
activities of his brother;
(2) Discharge of an employee due to union activities
of the wife;
(3) Discharge of a wife to due union activities of the
husband
Should the testimony relate to the right of SO and
CB?
2 views:
(1) Yes. All matters relating to labor
(2) No. Strict view: only those relating to exercise
of right to SO and CB
7. VIOLATION OF DUTY TO BARGAIN
Duty to bargain does not end in the execution of the
CBA. Failure to comply with the CBA constitutes
ULP.147
If an employer found the union’s demands
excessive, its remedy under the law is to refer the
matter for voluntary arbitration or compulsory
dispute resolution, not the closure of the
establishment.148
The duty to bargain does not include the obligation
to reach an agreement.149
8. NEGOTIATION OR ATTORNEYS FEES
Sweetheart contracts are favorable both to the union
and the employer at the expense of the employees.
The settlement of bargaining issues must be made by
fair bargaining in good faith, and not through the
payment of negotiation or attorney's fees which will
ultimately lead to sweetheart contracts.
9. GROSS VIOLATION OF CBA
TO VIOLATE THE CBA
LC 267 – only gross violations of CBA are to be
deemed ULPs; violations which are not gross are
mere grievances.
Gross violation of CBA = flagrant and/or malicious
refusal to comply with CBA’s econ provisions
E. 3. BY LABOR ORGANIZATIONS
Art. 260. Unfair labor practices of
147ShellOil Workers Union v Shell, 39 SCRA 276 (1971).
148St. John Colleges v St. John Faculty and EU, G.R. No. 167892
(2006).
149Union of Filipro Employees v Nestle, G.R. No. 158930 (2008).
LA SALLIAN COMMISION ON BAR OPERATIONS
35 LABOR LAW
organizations.
(1) It shall be unfair labor practice for a labor
organization, its officers, agents or
representatives:
(2) To restrain or coerce employees in the exercise
of their right to self-organization. However, a
labor organization shall have the right to
prescribe its own rules with respect to the
acquisition or retention of membership;
(3) To cause or attempt to cause an employer to
discriminate against an employee, including
discrimination against an employee with respect
to whom membership in such organization has
been denied or to terminate an employee on any
ground other than the usual terms and
conditions under which membership or
continuation of membership is made available to
other members;
(4) To violate the duty, or refuse to bargain
collectively with the employer, provided it is
the representative of the employees;
(5) To cause or attempt to cause an employer to
pay or deliver or agree to pay or deliver any
money or other things of value, in the nature of
an exaction, for services which are not
performed or not to be performed, including the
demand for fee for union negotiations;
(6) To ask for or accept negotiation or attorney’s
fees from employers as part of the settlement of
any issue in collective bargaining or any other
dispute; or
(7) To violate a collective bargaining agreement.
1. RESTRAINT, OR COERCION
“Interfere” not included since any act of a labor
organization is an interference to the right of self-
organization.
2. DISCRIMINATION: ENCOURAGE/
DISCOURAGE UNIONISM [ART. 260
(B)]
G.R.: it is a ULP for a labor organization to cause an
employer to discriminate against an employee.
XPN: provisions of a valid union security clause and
other company policies
3. VIOLATE DUTY TO BARGAIN OR
THE CBA
4. FEATHERBEDDING
Featherbedding or “make-work” by the union is the
practice of the union asking for money or other
things of value from the employer in return for
labor services which are not performed or are not to be
performed. (Art. 260)
 LABOR RELATIONS 36 LABOR LAW

5. ASKING OR ACCEPTING
NEGOTIATION AND OTHER ATTORNEY'S INTERPRETATION
Liberal construction in favor of labor. Statutory
FEES prohibitions construed liberally in favor of employees
Sweetheart Contracts or the act of labor and strictly against the employer. 153
organisations to ask for or accept negotiation or
attorney’s fees from the employer in settling a INTER-RELATIONS OF ULP ACTS
bargaining issue or a dispute. (Azucena p. 257) Republic Savings Bank v CIR, 21 SCRA 226
(1967).FACTS: Respondent wrote and published
6. VIOLATE A COLLECTIVE letter to the bank president, demanding his
BARGAINING AGREEMENT resignation on the grounds of immorality, nepotism,
favoritism and discrimination in the appointment and
Bar 2011 promotion of bank employees. HELD: Assuming that
Violation of CBA must be gross and as regards they acted in their individual capacities when they
economic provisions. To constitute ULP, violations of wrote the letter, they were nonetheless protected
the CBA must be gross, which means, under LC 267, for they were engaged in concerted activity, in their
flagrant and/or malicious refusal to comply with the right of self-organization that includes concerted
economic provisions thereof.150 activity for mutual aid and protection, interference
with which constitutes ULP. The joining in protests
Violations of collective bargaining agreements, or demands by even a small group of employees, if in
except flagrant and/or malicious refusal to comply furtherance of their interests as such, is a concerted
with its economic provisions, shall not be considered activity protected by the IPA. It is not necessary that
unfair labor practice and shall not be strikeable.(IRR) union activity be involved or that CB be
contemplated.
ECONOMIC PROVISIONS, DEFINED.
With reasonable monetary cost Management prerogative and ULPs
The Court recognizes the proprietary right of SanMig
NON-ECONOMIC PROVISIONS, DEFINED. to exercise an inherent management prerogative and
Without or whose monetary cost cannot be its best business judgment to determine whether it
computed, i.e. job security, management should contract out the performance of some of its
prerogatives, grievance machinery work to independent contractors. However, the
rights of all workers to self-organization, collective
If ER refuses to abide by the CBA’s check-off bargaining and negotiations, and peaceful concerted
provision or grievance procedure, is there ULP per activities, including the right to strike in accordance
LC 274? with law, equally call for recognition and
None. They are non-economic provisions. protection.154

Remedy: treat it as violation of the CBA or duty to MOTIVE, CONDUCT, AND PROOF
bargain collectively independently of LC 274. EMPLOYER MOTIVE AND PROOF
Motive is decisive factor in holding an employer
BURDEN OF PROOF guilty of ULP.155
Union with burden of proof to support ULP
allegations. It is the union, therefore, who had the TOTALITY OF EVIDENCE
burden of proof to present substantial evidence to Quantum of evidence for ULP complaint to prosper:
support its allegations of ULP by management. xxx It SUBSTANTIAL EVIDENCE
is not enough that union believed that the employer
committed acts of ULP when the circumstances
clearly negate even a prima facie showing to warrant ENFORCEMENT, REMEDIES AND SANCTIONS
such belief. 151 Party against whom ULP committed
American President Lines v Clave (1982). ULP may
For a charge of ULP to prosper, it must be shown only be committed on an employer or employee.
that (employer) was motivated by ill will, bad faith,
or fraud, or was oppressive to labor, or done in a PARTIES LIABLE FOR ACTS
manner contrary to morals, good customs, or public ULP by employer
policy, and of course, that social humiliation, ✓ Officers of company who participated in the
wounded feelings or grave anxiety resulted. 152 commission of the UL

150ArellanoUniversity EU v CA, G.R. No. 139940 (2006).

151ScheringEmployees Labor Union v Schering Plough Corp, G.R. No. 153Caltex Filipino Managers and Supervisors Assoc., v CIR, 44 SCRA
142506 (2005). 350 (1972).
152Central Azucarera de Bais EU v Central Azucarera, G.R. No. 154SMC-EU v Bersamira, 186 SCRA 496 (1990).

186605 (2010). 155Phil. Metal Foundries v CIR, 90 SCRA 135 (1979).

LA SALLIAN COMMISION ON BAR OPERATIONS

 LABOR RELATIONS
ULP by LO
✓ Officers of union who participated in the
commission of the ULP
Compromise
ULP cases cannot be compromised for PUBLIC
INTEREST
Bar 2011
Remedies and Sanctions
Quadra v CA (2006). In ULP cases, particularly in
cases of dismissal, moral and exemplary damages
may be awarded.
F. PEACEFUL CONCERTED ACTIVITIES
RIGHT TO PEACEFUL CONCERTED ACTIVITIES
CONCERTED ACTIVITIES:
✓ Participated in by 2 or more EEs;
✓ May be done by one employee
Deemed as concerted activity if aim is to move
others for purposes of CB or mutual aid or protection
For CB or mutual aid or protection;
Through action generally directed at ER or by others
having duties under the law to induce the desired
behavior
BASES OF RIGHT TO ENGAGE
CONCERTED ACTIVITIES
1. 1987 CONSTITUTION
Article XIII, Section 3
The State shall x xx guarantee the rights of all
workers to x xx peaceful concerted activities,
including the right to strike in accordance with law.
Injunctions should be reduced to the barest
minimum. Our Constitutions of 1935 and 1973 did not
accord constitutional status to the right to strike.
Even the liberal US Federal Constitution did not
elevate the right to strike to a constitutional level.
With a constitutional matrix, enactment of a law
implementing the right to strike was an inevitability.
xxx In light of the genesis of the right to strike, it
ought to be obvious that the right should be read
with a libertarian latitude in favor of labor. In the
wise words of Father Joaquin G. Bernas, S.J., a
distinguished commissioner of the 1987
Constitutional Commission " . . . the constitutional
recognition of the right to strike does serve as a
reminder that injunctions, should be reduced to the
barest minimum".156
2. STATUTES
Art 218-A. Declaration of Policy.
156Bisig
ng Manggagawa sa Concrete Aggregates v NLRC, 226 SCRA
499 (1993).
LA SALLIAN COMMISION ON BAR OPERATIONS
37 LABOR LAW
It is the policy of the State:
To promote and emphasize the primacy of free
collective bargaining and negotiations, including
voluntary arbitration, mediation and conciliation, as
modes of settling labor or industrial disputes;
To promote free trade unionism as an instrument for
the enhancement of democracy and the promotion
of social justice and development;
To foster the free and voluntary organization of a
strong and united labor movement;
Art 278.Strikes, picketing and lockouts.
It is the policy of the State to encourage free trade
unionism and free collective bargaining.
Workers shall have the right to engage in concerted
activities for purposes of collective bargaining or for
their mutual benefit and protection. The right of
legitimate labor organizations to strike and picket
and of employers to lockout, consistent with the
national interest, shall continue to be recognized
and respected. However, no labor union may strike
and no employer may declare a lockout on grounds
involving inter-union and intra-union disputes.
The more common of these concerted activities as
far as employees are concerned are:
1. STRIKES — the temporary stoppage of work
IN as a result of an industrial or labor dispute;
picketing — the marching to and fro at the
employer's premises, usually accompanied
by the display of placards and other signs
making known the facts involved in a labor
dispute; and
2. BOYCOTTS — the concerted refusal to
patronize an employer's goods or services
and to persuade others to a like refusal.
3. LOCKOUT — the counterpart activity that
management may licitly undertake. The
temporary refusal to furnish work on
account of a labor dispute
The right of legitimate labor organizations to
strike and picket and of employer to lockout,
consistent with the national interest, shall
continue to be recognized and respected.” The
legality of these activities is usually dependent
on the legality of the purposes sought to be
attained and the means employed therefor.157
LIMITATIONS
Bar 2000
Any violation of legal requirements will render strike
illegal. The strike is indeed a powerful weapon of
the working class. But precisely because of this, it
157Ilaw at Buklod ng Manggagawa v NLRC, 198 SCRA 586 (1991).
 LABOR RELATIONS
must be handled carefully, like a sensitive explosive,
lest it blow up in the workers’ own hands. Thus, it
must be declared only after the most thoughtful
consultation among them, conducted in the only way
allowed, that is, peacefully, and in every case
conformably to reasonable regulation. Any violation
of the legal requirements and strictures, such as a
defiance of a return-to-work order in industries
affected with public interest, will render the strike
illegal, to the detriment of the very workers it is
supposed to protect.158
The right to strike is not an absolute right.
ROLE OF PEACE OFFICERS DURING
STRIKES AND PICKETING
1. ESCORTING
No public official or employee, including officers and
personnel of the New Armed Forces of the
Philippines or the Integrated National Police, or
armed person, shall bring in, introduce or escort in
any manner, any individual who seeks to replace
strikers in entering or leaving the premises of a
strike area, or work in place of the strikers.
The police force shall keep out of the picket lines
unless actual violence or other criminal acts occur
therein:
Provided, That nothing herein shall be interpreted to
prevent any public officer from taking any measure
necessary to maintain peace and order, protect life
and property, and/or enforce the law and legal
order. (As amended by Executive Order No. 111,
December 24, 1986)159
2. ARREST AND DETENTION OF LAW VIOLATORS
Except on grounds of national security and public
peace or in case of commission of a crime, no union
members or union organizers may be arrested or
detained for union activities without previous
consultations with the Secretary of Labor.160
FORMS OF CONCERTED ACTIVITIES
F.1. BY LABOR ORGANIZATION
F.1.A. STRIKE
means any temporary stoppage of work by the
concerted action of employees as a result of an
industrial or labor dispute.161
A coercive measure resorted to by laborers to
enforce their demands. The idea behind a strike is
that a company engaged in a profitable business
cannot afford to have its production or activities
158BLT Bus Co. v NLRC, 212 SCRA 792 (1992).
159 Art. 279. Prohibited activities.
160 Art. 281. Requirement for arrest and detention.
161 Art 219(o)
LA SALLIAN COMMISION ON BAR OPERATIONS
38 LABOR LAW
interrupted, much less, paralyzed.162
The most powerful of the economic weapons of
workers which they unsheathe to force management
to agree to an equitable sharing of the joint product
of labor and capital.163
REQUISITES:
1. Temporary work stoppage
2. By workers’ concerted action
3. Because of a labor dispute
4. Between ER and EES
A valid strike therefore presupposes the existence of
a labor dispute. The strike undertaken by
respondents took the form of a sit-down strike, or
more aptly termed as a sympathetic strike, where
the striking employees have no demands or
grievances of their own, but they strike for the
purpose of directly or indirectly aiding others,
without direct relation to the advancement of the
interest of the strikers. It is indubitable that an
illegal strike in the form of a sit-down strike
occurred in petitioner’s premises, as a show of
sympathy to the two employees who were dismissed
by petitioner.164
Strike must be pursued on legal bounds. A strike is
the most powerful of the economic weapons of
workers which they unsheathe to force management
to agree to an equitable sharing of the joint product
of labor and capital. It is a weapon that can either
breathe life to or destroy the Union and its members
in their struggle with management for a more
equitable due to their labors. The decision to
declare a strike must therefore rest on a rational
basis, free from emotionalism, envisaged by the
tempers and tantrums of a few hot heads, and finally
focused on the legitimate interests of the Union
which should not, however, be antithetical to the
public welfare, and, to be valid, a strike must be
pursued within legal bounds. The right to strike as a
means of attainment of social justice is never meant
to oppress or destroy the employer.165
NATURE AND PURPOSE
A worker who joins a strike does so precisely to
assert or improve the terms and conditions of his
employment. If his purpose is to abandon his work,
he would not go into the trouble of joining a
strike.166
RATIONALE FOR REGULATION BY LAW
A strike is “any temporary stoppage of work by the
concerted action of employees as a result of an
162Phil
163Sta.
Can Co. v CIR (1950).
Rosa Coca Cola Plant Employees Union v. Coca Cola Bottlers
Phils., Inc., G.R. No. 164302 (2007).
164G&S Transport v Infante, 533 SCRA 326 (2007).
165Sta. Rosa Coca Cola Plant Employees Union v. Coca Cola Bottlers
Phils., Inc., G.R. No. 164302 (2007).
166BLTB Bus Co. v NLRC, 212 SCRA 792 (1992).
 LABOR RELATIONS
industrial or labor dispute.” It is the most
preeminent of the economic weapons of workers
which they unsheathed to force management to
agree to an equitable sharing of the joint product of
labor and capital. Undeniably, strikes exert some
disquieting effects not only on the relationship
between labor and management but also on the
general peace and progress society. Our laws thus
regulate their exercise within reasons by balancing
the interests of labor and management together with
the overarching public interest.167
EFFECT ON WORK RELATIONSHIP
Continuing work relationship
Work relationship suspended during the strike, NOT
SEVERED!
Consequences of continuing work relationship
between ER and strikers:
✓ ER’s duty to bargain collectively with EEs
remains
✓ ER’s must reinstate them after the strike
Since strikes cause disparity effects not only on the
relationship between labor and management but also
on the general peace and progress of society, the
law has provided limitations on the right to strike.168
Responsibility for illegal acts must be on an
individual and not collective basis. A union officer
may be declared to have lost his employment status
if he knowingly participated in an illegal strike
whereas a union member may be similarly faulted if
he knowingly participates in the commission of
illegal acts during the strike.169
Mere participation in an illegal strike is not a
sufficient ground for termination of the services of
the union members. The law, however, treats
differently mere union members. Mere participation
in an illegal strike is not a sufficient ground for
termination of the services of the union members.
The Labor Code protects an ordinary, rank-and-file
union member who participated in such a strike from
losing his job, provided that he did not commit an
illegal act during the strike. It can be gleaned from
the aforecited provision of law in point, however,
that an ordinary striking employee cannot be
terminated for mere participation in an illegal
strike. There must be proof that he committed
illegal acts during the strike and the striker who
participated in the commission of illegal act must be
identified.170
TYPES AND CONVERSION
Types:
✓ ULP
167Lapanday Workers Union v NLRC, 248 SCRA 95 (1995).
168StaRosa Coca-Cola Plant EU v CCBP, G.R. No. 164302-03 (2007).
169Chuayuco Steel v Buklod ng Manggagawa, G.R. No. 167347 (2007).
170G&S Transport v Infante, 533 SCRA 288 (2007).
LA SALLIAN COMMISION ON BAR OPERATIONS
39 LABOR LAW
✓ Economic or bargaining deadlock
A no-strike clause in a CBA is applicable only to
economic strikes. Corollarily, if the strike is founded
on an unfair labor practice of the employer, a strike
declared by the union cannot be considered a
violation of the no-strike clause. An economic strike
is defined as one which is to force wage or other
concessions from the employer which he is not
required by law to grant.171
ULP
Bar 2009, 2010, 2011, 2012, 2013
Art 278 (c)
(c) In case of bargaining deadlocks, the duly
certified or recognized bargaining agent may file a
notice of strike or the employer may file a notice of
lockout with the Ministry at least 30 day before the
intended date thereof. In cases of unfair labor
practice, the period of notice shall be 15 days and in
the absence of a duly certified or recognized
bargaining agent, the notice of strike may be filed
by any legitimate labor organization in behalf of its
members. However, in case of dismissal from
employment of union officers duly elected in
accordance with the union constitution and by-laws,
which may constitute union busting, where the
existence of the union is threatened, the 15-day
cooling-off period shall not apply and the union may
take action immediately. (As amended by Executive
Order No. 111, December 24, 1986)
ULP strike
Strike committed upon a ULP complaint.
May be conducted without filing of a notice of strike
Shell Oil Workers v Shell (1971).It is true that there
is a requirement in the act that before the
employees may go on strike, they must file with the
conciliation service of the department of labor a
notice of their intention to strike. Such a requisite,
however, as has been repeatedly declared by this
Court, does not have to be complied with in case of
ULP strike, which certainly is entitled to greater
judicial protection if the Industrial Peace act is to be
rendered meaningful
BARGAINING DEADLOCK – ECONOMIC/ULP
Economic strike, defined
One which is to force wage or other concessions
from the employer which he is not required by law
to grant.
CONVERSION, DEFINED
An economic strike changes in character to one for
ULP from the time the company refuses to reinstate
some of its striking employees because of their union
activities after it had offered to readmit all strikers
and in fact readmit others.
171Mastor Iron Labor v NLRC, 219 SCRA 47 (1993).
 LABOR RELATIONS
Backpay not due to strikers in economic strikes since
the employer should get the equivalent day’s work
for what he pays his employees. In ULP strikes, grant
of back wages is discretionary.172
NON-CONVERSION – STRIKE TO LOCK-OUT
Sukhothai Cuisine and Restaurant v CA, G.R. No.
150437 (2006). Strikes held in violation of
agreements providing for arbitration are illegal since
these agreements must be strictly adhered to and
respected if their ends are to be achieved. Xxx For
failing to exhaust all steps in the arbitration
proceedings, the strike staged by the private
respondents is illegal. Xxx Even if the strike were to
be declared valid because its objective or purpose is
lawful, the strike may still be declared invalid where
the means employed are illegal.
GROUNDS FOR STRIKE
Bar 2007, 2012
IR, Book V, Rule XXII, Sec. 5. Grounds for strike or
lock-out.
A strike or lock-out may be declared in cases of
bargaining deadlocks and unfair labor practices.
Violations of collective bargaining agreements,
except flagrant and/or malicious refusal to comply
with its economic provisions, shall not be considered
unfair labor practice and shall not be strikeable. No
strike or lock-out may be declared on the grounds
involving inter-union and intra-union disputes or
without first having filed a notice of strike or lock-
out or without the necessary strike or lock-out vote
having been obtained and reported to the Board.
Neither will a strike be declared after assumption of
jurisdiction by the Secretary or after certification or
submission of the dispute to compulsory or voluntary
arbitration or during the pendency of cases involving
the same grounds for the strike or lock-out.
Grounds as strikeable issues:
• ULP
• Bargaining deadlock
ULP
Barred by no-
strike clause? NO173
Strikers’ Court has discretion to
entitlement grant.
to backwages YES, in cases of
discriminatory
dismissal or
suspension, unlawful
lock-out and other
ULPs
Cooling off
period 15 or O days
required
Good faith as
172Consolidated Labor Assn v Marsman and Co, 11 SCRA 589 (1964).
173Mastor Iron Labor v NLRC, 219 SCRA 47 (1993).
LA SALLIAN COMMISION ON BAR OPERATIONS
40 LABOR LAW
defense YES NO
ALLOWABLE STRIKES
Art. 278 (c)
(c) In case of bargaining deadlocks, the duly
certified or recognized bargaining agent may file a
notice of strike or the employer may file a notice of
lockout with the Ministry at least 30 day before the
intended date thereof. In cases of unfair labor
practice, the period of notice shall be 15 days and in
the absence of a duly certified or recognized
bargaining agent, the notice of strike may be filed
by any legitimate labor organization in behalf of its
members. However, in case of dismissal from
employment of union officers duly elected in
accordance with the union constitution and by-laws,
which may constitute union busting, where the
existence of the union is threatened, the 15-day
cooling-off period shall not apply and the union may
take action immediately. (As amended by Executive
Order No. 111, December 24, 1986)
PROHIBITED STRIKES
✓ Inter-union or intra-union (278-b)
✓ CBA violation not gross in character (Art. 274)
✓ After AJO or certification order (279-a, par. 2)
✓ After certification or submission of dispute to
compulsory/voluntary arbitration (279-a, par. 2)
✓ During pendency of cases involving the same
grounds for the strike (279-a, par. 2)
✓ w/o union first having bargained collectively
(279-a)
after improved offer balloting (assumed that strike
declared, on 30th day NCMB will tell union the offer
of management, labor dispute shall end if union
accepts) (280)
Wage distortion (RA 6727)
For failure to comply with statutory requirements
(279-a)
ECONOMIC Employees who have no labor dispute with their
employer but who, on a day they are scheduled to
YES work, refuse to work and instead join a
welgangbayan, where there is no showing that the
employees notified their employer of their intention,
or that they were allowed by the latter, to join the
welgangbayan, commit an illegal work stoppage.174
NO
EMPLOYMENT OF STRIKE BREAKERS
Art 279. Prohibited activities.
No employer shall use or employ any strike-breaker,
nor shall any person be employed as a strike-
30 days breaker.
Strike breakers, defined
174BiflexPhils.
Inc. Labor Union v Filflex Industrial and Manufacturing
Corporation and Biflex, G.R. No. 155679 (2006)
 LABOR RELATIONS 41 LABOR LAW

any person who obstructs, impedes, or interferes WHO MAY STRIKE?

with by force, violence, coercion, threats, or Strike upon: SEBA LLO
intimidation any peaceful picketing affecting wages, Bargaining
hours or conditions of work or in the exercise of the deadlock YES NO
right of self-organization or collective bargaining.175 (263-c)
ULP YES NO, but YES if there is
IMPROVED OFFER BALLOTING AND STRIKES (263-c) NO SEBA
Art 280. Improved offer balloting.
In an effort to settle a strike, the Department of Can minority union strike because of a ULP? NO.
Labor and Employment shall conduct a referendum They cannot strike. Only recourse is to file ULP
by secret ballot on the improved offer of the complaint with the NLRC.
employer on or before the 30th day of the strike.
When at least a majority of the union members vote Bar 2004
to accept the improved offer the striking workers Mandatory requirements:
shall immediately return to work and the employer 1. Notice of Strike
shall thereupon readmit them upon the signing of Filed with the NCMB, copy sent to employer (278-c).
the agreement. To allow NCMB to intervene, conciliate

In case of a lockout, the Department of Labor and
Employment shall also conduct a referendum by
secret balloting on the reduced offer of the union on
or before the 30th day of the lockout. When at least
a majority of the board of directors or trustees or
the partners holding the controlling interest in the
case of a partnership vote to accept the reduced
offer, the workers shall immediately return to work
and the employer shall thereupon readmit them
upon the signing of the agreement. (Incorporated by
Section 28, Republic Act No. 6715, March 21, 1989)
IR, Book V, Rule XXII, Sec 12
In case of a strike, the regional branch of the Board
shall, at its own initiative or upon request of any
affected party, conduct a referendum by secret
balloting on the improved offer of the employer on
or before the 30th day of the strike. When at least
majority of the union members vote to accept the
improved offer, the striking workers shall
immediately return to work and the employer shall
thereupon re-admit them upon the signing of the
agreement.
xxx
2. If economic strike, union must show proof that
it had asked management to negotiate with it
3. If ULP, union must allege acts of ULP committed
4. Observance of cooling off period
Parties are called for mediation/conciliation
conferences. If it fails, resort to VA
a. 15-day cooling off period for ordinary ULP
strike
Not required in cases of alleged union busting
(where union officers were dismissed which
threatens existence of union)
b. 30-day cooling off period for economic strike
When reckoned? From date of filing of notice of
strike
5. Notice of strike vote
Filed with the NCMB at least 24 hours before strike
vote
6. Strike vote
Where majority of union membership decides to
declare strike, by secret ballot (263-f)

STRIKING PARTY 7. Report of strike vote

IR, Book V, Rule XXII, Sec. 6. Who may declare strike
or lockout.
Any certified or duly recognized bargaining
representative may declare a strike in cases of
bargaining deadlocks and unfair labor practices. The
employer may declare a lockout in the same cases.
In the absence of a certified or duly recognized
bargaining representative, any legitimate labor
organization in the establishment may declare a
strike but only on the grounds of ULP.
Filed with the NCMB within seven (7) days (strike
ban)
8. 7-day strike ban
Assurance that a strike vote has been conducted and
is truthful.
May run simultaneously with cooling period
The procedural requirements for a valid strike are
mandatory in nature and failure to comply therewith
renders the strike illegal. 176

In case of alleged union-busting, the 3 remaining

requirements – notice, strike vote, and 7 day report
175 Art 219(r) 176Pilipino Telephone Corp. v PILIEA, 525 SCRA 361 (2007)

LA SALLIAN COMMISION ON BAR OPERATIONS

 LABOR RELATIONS 42 LABOR LAW

period – cannot be dispensed with. The union may

strike “immediately” provided that the strike vote is
conducted, the result thereof submitted “in every Defenses – good faith
case” at least 7 days before the intended strike or
lockout.177 Where a union believes that an employer committed
ULP and the surrounding circumstance warranted
TEST OF LEGALITY such belief in good faith, resulting strike may be
1. Purpose and means test considered legal, although such allegations of ULP
Assumption and certification orders are executory in were found to be groundless.181
character and are to be strictly complied with by the
parties even during the pendency of any petition F.1.B. LEGAL VS. ILLEGAL STRIKE
questioning their validity. xxx Regardless therefore
of their motives, or the validity of their claims, the LEGAL VS. ILLEGAL STRIKE
striking workers must cease and/or desist from any Leg One called for a valid purpose and conducted
and all acts that tend to, or undermined this al through means allowed by law.182
authority of the secretary once an assumption Stri
and/or certification was issued.178 ke
Illeg 1. If any of the
The strike in question was illegal. The strike itself al requirements
was prompted by no actual, existing unfair labor Stri for a valid
practice committed by the petitioner. In effecting a ke strike or
change in the seating arrangement in the office of lockout is not
the underwriting department, the petitioner merely complied with
exercised a reasonable prerogative employees could 2. If it is based
not validly question, much less assail as an act of on non-
ULP. The court is indeed at a loss how rearranging strikeable
furniture, as it were, can justify a 4 month long issues or if the
strike.179 issues involved
are already
2. Guidelines and balancing of interest the subject of
Shell Oil Workers Union v Shell Co. of the Phils., 39 arbitration.
SCRA 276 (1971). When to strike – The assumption is 3. During a strike
that labor can be trusted to determine for itself or lockout,
when the right to strike may be availed of in order to when either of
attain a successful fruition in their disputes with the parties
management. How strike is to be conducted – A commits
strike otherwise valid, if violent in character, may prohibited acts
be placed beyond the pale. Care is to be taken, or practices.183
however, especially where an unfair labor practice is
involved, to avoid stamping it with illegality just
because it is tainted by such acts. To avoid rendering ILLEGAL STRIKE
illusory the recognition of the right to strike,
responsibility in such a case should be individual and BASIS OF ILLEGALITY.
not collective. A different conclusion would be Art. 278. Strikes, picketing and lockouts.
called for, of course, if the existence of force while b. Workers shall have the right to engage in
the strike lasts is pervasive and widespread, concerted activities for purposes of collective
consistently and deliberately resorted to as a matter bargaining or for their mutual benefit and
of policy. It could be reasonably concluded then that protection. The right of legitimate labor
even if justified as to ends it becomes illegal organizations to strike and picket and of employers
because of the means employed. to lockout, consistent with the national interest,
shall continue to be recognized and respected.
The right to strike while constitutionally recognized, However, no labor union may strike and no employer
is not without legal restrictions. There are may declare a lockout on grounds involving inter-
procedural steps to be followed before a strike may union and intra-union disputes.
be staged. These requirements are mandatory,
meaning noncompliance therewith makes the strike
181Hotel Enterprises of the Phils.vSamahanngManggagawang Hyatt,
illegal.180
G.R. No. 165756 (2009).
182 NCMB. http://co.ncmb.ph/conciliation-mediation/
177Sukhothai Cuisine Restaurant v CA, G.R. No. 150437 (2006). 183Bureau of Labor Relations.
178Union of Filipino Employees v Nestle Phils.Inc., 192 SCRA 396 http://www.blr.dole.gov.ph/frequently-asked-questions/59-strikes-
(1990). and-lockout
179Reliance Surety and Insurance v NLRC, 193 SCRA 365 (1991).
180Stamford Marketing Corp v Julian, G.R. No. 145496 (2004).

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 LABOR RELATIONS
c. In case of bargaining deadlocks, the duly certified
or recognized bargaining agent may file a notice of
strike or the employer may file a notice of lockout
with the Ministry at least 30 day before the intended
date thereof. In cases of unfair labor practice, the
period of notice shall be 15 days and in the absence
of a duly certified or recognized bargaining agent,
the notice of strike may be filed by any legitimate
labor organization in behalf of its members.
However, in case of dismissal from employment of
union officers duly elected in accordance with the
union constitution and by-laws, which may
constitute union busting, where the existence of the
union is threatened, the 15-day cooling-off period
shall not apply and the union may take action
immediately. (As amended by Executive Order No.
111, December 24, 1986)
Art. 279. Prohibited activities
a. No labor organization or employer shall declare a
strike or lockout without first having bargained
collectively in accordance with Title VII of this Book
or without first having filed the notice required in
the preceding Article or without the necessary strike
or lockout vote first having been obtained and
reported to the Ministry.
No strike or lockout shall be declared after
assumption of jurisdiction by the President or the
Minister or after certification or submission of the
dispute to compulsory or voluntary arbitration or
during the pendency of cases involving the same
grounds for the strike or lockout.
Any worker whose employment has been terminated
as a consequence of any unlawful lockout shall be
entitled to reinstatement with full back wages. Any
union officer who knowingly participates in an illegal
strike and any worker or union officer who knowingly
participates in the commission of illegal acts during
a strike may be declared to have lost his
employment status: Provided, That mere
participation of a worker in a lawful strike shall not
constitute sufficient ground for termination of his
employment, even if a replacement had been hired
by the employer during such lawful strike.
Art. 280. Improved offer balloting.
In an effort to settle a strike, the Department of
Labor and Employment shall conduct a referendum
by secret ballot on the improved offer of the
employer on or before the 30th day of the strike.
When at least a majority of the union members vote
to accept the improved offer the striking workers
shall immediately return to work and the employer
shall thereupon readmit them upon the signing of
the agreement.
In case of a lockout, the Department of Labor and
Employment shall also conduct a referendum by
LA SALLIAN COMMISION ON BAR OPERATIONS
43 LABOR LAW
secret balloting on the reduced offer of the union on
or before the 30th day of the lockout. When at least
a majority of the board of directors or trustees or
the partners holding the controlling interest in the
case of a partnership vote to accept the reduced
offer, the workers shall immediately return to work
and the employer shall thereupon readmit them
upon the signing of the agreement. (Incorporated by
Section 28, Republic Act No. 6715, March 21, 1989)
WHAT IS AN ILLEGAL STRIKE?
✓ Prohibited by law
✓ Purpose is illegal, trivial, unconscionable or
unjust
✓ Illegal means
✓ Prohibited under a no-strike clause in the CBA
(economic strikes)
Unlawful acts during a strike:
✓ Defiance of AJ/CO
✓ Violence
✓ Barricading ingress and egress
✓ picket must be constantly moving
✓ Strike-breaking by non-strikers
✓ Escorting replacement by AFP/PNP, government
officers or employees, security guards
Strike must be through legal means. It is doctrinal
that the exercise of the right of private sector
employees to strike is not absolute. Even if the
purpose of the strike is valid, the strike may still be
held illegal where the means employed are illegal.184
EFFECT OF ILLEGALITY
Bar 1994, 1995, 2006, 2007
Art. 279. Prohibited activities.
(a) No labor organization or employer shall declare a
strike or lockout without first having bargained
collectively in accordance with Title VII of this Book
or without first having filed the notice required in
the preceding Article or without the necessary strike
or lockout vote first having been obtained and
reported to the Ministry.
No strike or lockout shall be declared after
assumption of jurisdiction by the President or the
Minister or after certification or submission of the
dispute to compulsory or voluntary arbitration or
during the pendency of cases involving the same
grounds for the strike or lockout.
Any worker whose employment has been terminated
as a consequence of any unlawful lockout shall be
entitled to reinstatement with full back wages. Any
union officer who knowingly participates in an illegal
strike and any worker or union officer who knowingly
participates in the commission of illegal acts during
a strike may be declared to have lost his
184Philippine Diamond Hotel v Manila Diamond EU, G.R. No. 158075
(2006).
 LABOR RELATIONS
employment status: Provided, That mere
participation of a worker in a lawful strike shall not
constitute sufficient ground for termination of his
employment, even if a replacement had been hired
by the employer during such lawful strike.
EFFECTS OF ILLEGAL STRIKE
For union officers: Dismissal, No back wages
For members: None, except if committed illegal acts
during strike
An ordinary striking worker cannot be terminated for
mere participation in an illegal strike. The effects of
such illegal strikes, outlined in Article 279, make a
distinction between workers and union officers who
participate therein: an ordinary striking worker
cannot be terminated for mere participation in an
illegal strike. There must be proof that he or she
committed illegal acts during a strike. A union
officer, on the other hand, may be terminated from
work when he knowingly participates in an illegal
strike, and like other workers, when he commits an
illegal act during a strike. In all cases, the striker
must be identified. But proof beyond reasonable
doubt is not required. Substantial evidence available
under the attendant circumstances, which may
justify the imposition of the penalty of dismissal,
may suffice. Liability for prohibited acts is to be
determined on an individual basis.185
INJUNCTIONS
Art. 266. Injunction prohibited.
No temporary or permanent injunction or restraining
order in any case involving or growing out of labor
disputes shall be issued by any court or other entity,
except as otherwise provided in Articles 218 and 264
of this Code. (As amended by Batas Pambansa Bilang
227, June 1, 1982)
There can be no injunction issued against any strike
except in only one instance, that is, when a labor
dispute arises in an industry indispensable to the
national interest and such dispute is certified by the
President to the CIR in compliance with sec 10, RA
875.186
Exceptions
Art. 225. Powers of the Commission.
The Commission shall have the power and authority:
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: Provided, That no
temporary or permanent injunction in any case
185Sukhothai
Cuisine Restaurant v CA, G.R. No. 150437 (2006).
186CaltexFilipino Managers and Supervisors Assn v CIR, G.R. No.
130632-33 (1972).
LA SALLIAN COMMISION ON BAR OPERATIONS
44 LABOR LAW
involving or growing out of a labor dispute as defined
in this Code shall be issued except after hearing the
testimony of witnesses, with opportunity for cross-
examination, in support of the allegations of a
complaint made under oath, and testimony in
opposition thereto, if offered, and only after a
finding of fact by the Commission, to the effect:
That prohibited or unlawful acts have been
threatened and will be committed and will be
continued unless restrained, but no injunction or
temporary restraining order shall be issued on
account of any threat, prohibited or unlawful act,
except against the person or persons, association or
organization making the threat or committing the
prohibited or unlawful act or actually authorizing or
ratifying the same after actual knowledge thereof;
That substantial and irreparable injury to
complainant’s property will follow;
That as to each item of relief to be granted, greater
injury will be inflicted upon complainant by the
denial of relief than will be inflicted upon
defendants by the granting of relief;
That complainant has no adequate remedy at law;
and
That the public officers charged with the duty to
protect complainant’s property are unable or
unwilling to furnish adequate protection.
Such hearing shall be held after due and personal
notice thereof has been served, in such manner as
the Commission shall direct, to all known persons
against whom relief is sought, and also to the Chief
Executive and other public officials of the province
or city within which the unlawful acts have been
threatened or committed, charged with the duty to
protect complainant’s property: Provided, however,
that if a complainant shall also allege that, unless a
temporary restraining order shall be issued without
notice, a substantial and irreparable injury to
complainant’s property will be unavoidable, such a
temporary restraining order may be issued upon
testimony under oath, sufficient, if sustained, to
justify the Commission in issuing a temporary
injunction upon hearing after notice. Such a
temporary restraining order shall be effective for no
longer than twenty (20) days and shall become void
at the expiration of said twenty (20) days. No such
temporary restraining order or temporary injunction
shall be issued except on condition that complainant
shall first file an undertaking with adequate security
in an amount to be fixed by the Commission
sufficient to recompense those enjoined for any loss,
expense or damage caused by the improvident or
erroneous issuance of such order or injunction,
including all reasonable costs, together with a
reasonable attorney’s fee, and expense of defense
 LABOR RELATIONS
against the order or against the granting of any
injunctive relief sought in the same proceeding and
subsequently denied by the Commission.
The undertaking herein mentioned shall be
understood to constitute an agreement entered into
by the complainant and the surety upon which an
order may be rendered in the same suit or
proceeding against said complainant and surety,
upon a hearing to assess damages, of which hearing,
complainant and surety shall have reasonable notice,
the said complainant and surety submitting
themselves to the jurisdiction of the Commission for
that purpose. But nothing herein contained shall
deprive any party having a claim or cause of action
under or upon such undertaking from electing to
pursue his ordinary remedy by suit at law or in
equity: Provided, further, That the reception of
evidence for the application of a writ of injunction
may be delegated by the Commission to any of its
Labor Arbiters who shall conduct such hearings in
such places as he may determine to be accessible to
the parties and their witnesses and shall submit
thereafter his recommendation to the Commission.
(As amended by Section 10, Republic Act No. 6715,
March 21, 1989)
F.2. PICKET
Bar 2000, 2004
IR, Book V, Rule XXII, Sec 13. Peaceful picketing.
Workers shall have the right to peaceful picketing.
No person engaged in picketing shall commit any act
of violence, coercion or intimidation or obstruct the
free ingress to or egress from the employer’s
premises for lawful purposes, or obstruct public
thoroughfares.
No person shall obstruct, impede or interfere with,
by force, violence, coercion, threats or intimidation,
any peaceful picketing by workers during any labor
controversy or in the exercise of the right to self
organization or collective bargaining shall aid or
abet such obstruction or interference. No employer
shall use or employ any person to commit such acts
nor shall any person by employed for such purpose.
NATURE AND PURPOSE OF PICKET LINE
The purpose of pickets is said to be a means of
peaceable persuasion. Picketing involves merely the
marching to and fro at the premises of the employer,
usually accompanied by the display of placards and
other signs making known the facts involved in a
labor dispute. xxx As applied to a labor dispute, to
picket means the stationing of one or more persons
to observe and attempt to observe.187
Picketing and libel laws
Peaceful picketing is part of the freedom of speech.
187Sta Rosa Coca-Cola Plant EU v CCBP, G.R. No. 164302-03 (2007).
LA SALLIAN COMMISION ON BAR OPERATIONS
45 LABOR LAW
That the language employed by the picketers is far
from being courteous and polite does not give rise to
a cause for label and damages.188
CURTAILMENT
Peaceful picketing, freedom of speech. The
wholesale condemnation of peaceful picketing is
likewise clearly bereft of support in law. Peaceful
picketing is part of freedom of speech guarantee of
the constitution.189
REGULATION/RESTRICTIONS, INNOCENT THIRD
PARTY RULE AND LIABILITIES
A picketing labor union has no right to prevent
employees of another company from getting in and
out of its rented premises, otherwise it will be held
liable for damages for its acts against an innocent
bystander. 190
PROHIBITED ACTIVITIES:
✓ acts of violence, coercion or intimidation
✓ obstruct the free ingress to or egress from the
employer’s premises for lawful purposes
✓ obstruct public through fares
✓ obstruct, impede or interfere with by force,
violence, coercion, threats or intimidation, any
peaceful picketing
✓ use or employment of any person to commit such
acts nor shall any person be employed for such
purpose.
SLOWDOWN
Slowdown as “strike on installment”, inherently
illicit a wilfull reduction in the rate of work by
concerted action of workers for the purpose of
restricting the output of the employer, in relation to
a labor dispute; as an activity by which workers,
without a complete stoppage of work, retard
production or their performance of duties and
functions to compel management to grant their
demands. The Court also agrees that such a
slowdown is generally condemned as inherently
illicit and unjustifiable, because while the
employees "continue to work and remain at their
positions and accept the wages paid to them," they
at the same time "select what part of their allotted
tasks they care to perform of their own volition or
refuse openly or secretly, to the employer's damage,
to do other work;" in other words, they "work on
their own terms.191
F.3. BY EMPLOYER
F.2.A. LOCKOUT
If the employees can strike, the employer can lock-
188Philcom v Philnabank EA, 105 SCRA 314 (1981).
189Nagkahiusang Manggagawa sa Cuison Hotel-National Federation of
Labor v Libron, 124 SCRA 448 (1983).
190Liwayway publishing Co. Inc. v Permanent concrete workers
union, 108 SCRA 161 (1981)
191Ilaw at Buklod ng Manggagawa v NLRC, 198 SCRA 598 (1991).
 LABOR RELATIONS
out.192
WHAT IS A LOCK-OUT?
any temporary refusal of an employer to furnish
work as a result of an industrial or labor dispute.193
It is an employer’s act excluding employees who are
union members from the plant.194
**Workers shall have the right to engage in concerted
activities for purposes of:
collective bargaining (or for)
their mutual benefit and protection.
The right of legitimate labor organizations to strike
and picket and of employers to lockout, consistent
with the national interest, shall continue to be
recognized and respected. However, no labor union
may strike and no employer may declare a lockout
on grounds involving inter-union and intra-union
disputes.195
EFFECT ON WORK RELATIONSHIP
Lockout may affect all or less than all of the
employee-union members. Lockout, in the sense in
which it is universally used, is an act directed at the
union itself rather than at the individual employee-
union members of the union.196
GROUNDS
In case of bargaining deadlocks, the duly certified or
recognized bargaining agent may file a notice of
strike or the employer may file a notice of lockout
with the Ministry at least 30 day before the intended
date thereof. In cases of unfair labor practice, the
period of notice shall be 15 days and in the absence
of a duly certified or recognized bargaining agent,
the notice of strike may be filed by any legitimate
labor organization in behalf of its members.
However, in case of dismissal from employment of
union officers duly elected in accordance with the
union constitution and by-laws, which may
constitute union busting, where the existence of the
union is threatened, the 15-day cooling-off period
shall not apply and the union may take action
immediately. (As amended by Executive Order No.
111, December 24, 1986)197
Lockout may be caused either by:
1. A collective bargaining deadlock or
2. An unfair labor practice act.
Lockout is recognized as a valid weapon in collective
bargaining. It may bring pressure upon the other
party (employee), where an impasse has arisen
during bargaining negotiations or where one party
192 The Labor Code Vol.II, Azucena
193 Art. 218 (p), Labor Code of the Philippines
194Sta.Mesa v. CIR, 48 OG 3353
195 Art. 278 (b), LC
196Azucena, Vol. II
197 Art. 278(c), LC
LA SALLIAN COMMISION ON BAR OPERATIONS
46 LABOR LAW
commits ULP, subject to statutory requirements.
General Rule: Lockout, as a rule, is not subject to
labor injunction or restraining orders.
Exception: In cases of national interest or if act are
prohibited under Art. 270 are being committed.
PROHIBITED LOCKOUT
[N]o labor union may strike and no employer may
declare a lockout on grounds involving inter-union
and intra-union disputes.198
In line with the national concern for and the highest
respect accorded to the right of patients to life and
health, strikes and lockouts in hospitals, clinics and
similar medical institutions shall, to every extent
possible, be avoided, and all serious efforts, not only
by labor and management but government as well,
be exhausted to substantially minimize, if not
prevent, their adverse effects on such life and
health, through the exercise, however legitimate, by
labor of its right to strike and by management to
lockout.199
No labor organization or employer shall declare a
strike or lockout without first having bargained
collectively in accordance with Title VII of this Book
or without first having filed the notice required in
the preceding Article or without the necessary strike
or lockout vote first having been obtained and
reported to the Ministry.
No strike or lockout shall be declared after
assumption of jurisdiction by the President or the
Minister or after certification or submission of the
dispute to compulsory or voluntary arbitration or
during the pendency of cases involving the same
grounds for the strike or lockout.200
VALID LOCKOUTS:
✓ In anticipation of a threatened strike, where
motivated by economic considerations.201
✓ In response to unprotected strike or walkout.202
✓ In response to a whipsaw strike.203
UNLAWFUL LOCKOUTS:
✓ To discourage and dissipate membership in a
labor organization, or otherwise kill the union
✓ To aid a particular union by preventing further
organizational work of its rival, or to coerce the
employees to join the favoured union.
✓ To avoid bargaining.
Lockout must be for a lawful purpose and carried out
through lawful means. A lockout is unlawful where it
is declared in order to defeat organizational and
198 Art. 278 (b) (3rd sentence) , LC
199 Art. 278 (g), LC
200 Art. 279 (a)
201Tidewater Express Lines case, 142 NLRB 1111
202News Union of BAtimore v. NLRB, 393 F2d 673
203NLRB v. Brown, 13 L ed 2d 839
 LABOR RELATIONS
bargaining rights of employees.204
PROCEDURAL REQUIREMENTS
✓ BARGAIN FIRST (Art. 264(a))
✓ NOTICE OF INTENTION TO LOCKOUT.
File notice of strike (or lockout) to the regional
office of the NCMB205 As the case may be furnish a
copy to the employer of the notice of strike
(lockout)
COOLING OFF PERIOD
Observe cooling off period
✓ 30 days for Bargaining deadlock;
✓ 15 days for Unfair Labor Practice;
take action immediately for for Union Busting. to
enable parties to amicably settle the case.
STRIKE VOTE.
If not resolved, conduct a strike vote and inform the
NCMB 24 hours prior the intended day of conducting
the strike vote.
Approved by a majority of the board of directors of
the corporation or association or of the partners in
the partnership
✓ Obtained by secret ballot
✓ In a meeting called for that purpose
STRIKE VOTE REPORT
Submit the result of the strike vote at least 7 days
before the intended strike or lockout. (7 days strike
ban)
DECLARATION OF STRIKE OR LOCKOUT.
If NCMB is satisfied that the conduct of strike vote
was properly done, after the Lapse of 7 days the
employees may now conduct their strike, or the
employer may now proceed with its lockout.
If the dispute remains unsettled after the lapse of
the cooling off period and the 7day reporting period,
the labor union may strike or the employer may
lockout its workers.
NCMB shall continue mediating and conciliating.
EFFECT OF ILLEGAL LOCKOUT
Any worker whose employment has been terminated
as a consequence of any unlawful lockout shall be
entitled to reinstatement with full backwages.206
204Dinglasan v. NLU, 98 Phil. 649
205 National Conciliation and Mediation Board (Regional branch)
206 Art. 279(a), par. 3, 1 st sentence, LC
LA SALLIAN COMMISION ON BAR OPERATIONS
47 LABOR LAW
F.4. ASSUMPTION OF JURISDICTION
ASSUMPTION OF JURISDICTION BY THE DOLE
SECRETARY OR CERTIFICATION OF THE LABOR
DISPUTE TO THE NLRC FOR COMPULSORY
JURISDICTION
Bar 1996, 2003, 2004, 2008, 2010, 2011
Assumption of jurisdiction or certification of labor
dispute
SOLE may assume jurisdiction over dispute and
decide it or certify the same to the commission for
compulsory arbitration when in his opinion there
exists a labor dispute causing strikes or problems to
industries imbued with national interest or vital
industries or those indispensable to national
interest.
SOLE given great latitude to solve a labor dispute,
given great breath of discretion
DO 40G-03 (2010)
Sole ruled that he/she may assume jurisdiction over
a labor dispute only on the ff conditions:
Both parties requested
Conference called for to decide on propriety of
issuance, motupropio or upon request or petition by
either parties to the labor dispute
Effect of AJ or Certification
Intended strike is automatically enjoined
If one has taken place
All employees should immediately return to work
Employers should immediately resume operation and
readmit all employees under same terms before the
strike
AJ or Certification immediately executory, even if
motion for reconsideration is still pending
Effect of defiance of AJ or certification order
Defying party may be disciplined, may even be
dismissed from work
A strike continued in defiance of AJ or CO becomes a
prohibited activity, thus officers and members who
have knowingly defied the order are deemed to have
lost their employment (different from illegal strike
where only union officers are liable)
Assumption order
The power granted to the Secretary of DOLE by Art
278(g) authorizes her to assume jurisdiction over a
labor dispute causing or likely to cause a strike or
 LABOR RELATIONS
lockout in an industry indispensable to the national
interest, and correlatively, to decide the same. 207
The secretary’s assumption of jurisdiction power
necessarily includes matters incidental to the labor
dispute, that is, issues that are necessarily involved
in the dispute itself, not just to those ascribed in the
Notice of Strike, or, otherwise submitted to him for
resolution208
The authority to assume jurisdiction over a labor
dispute must include and extend to all questions and
controversies arising thereform.209
COMPULSORY ARBITRATION, CONDUCTED BY:
✓ Labor arbiter
✓ SOLE under 278 (g)
In compulsory arbitration, parties are compelled to
forego their right to strike by the government.
Impartial party in compulsory arbitration is
appointed by statutory authority. When the consent
of one of the parties is enforced by statutory
provisions, the proceeding is referred to as
compulsory arbitration. Compulsory arbitration is the
process of settlement of labor disputes by a
government agency which has authority to
investigate and to make an award which is binding
on all parties. 210
The filing of the strike notice, and the
commencement of conciliation activities by the
Bureau of Labor Relations did not operate to make
GTE's orders illegal or unenforceable so as to excuse
continued non-compliance therewith. It does not
follow that just because the employees or their
union are unable to realize or appreciate the
desirability of their employers' policies or rules, the
latter were laid down to oppress the former and
subvert legitimate union activities. Indeed, the
overt, direct, deliberate and continued defiance and
disregard by the employees of the authority of their
employer left the latter with no alternative except
to impose sanctions. The sanction of suspension
having proved futile, termination of employment was
the only option left to the employer.211
Compulsory arbitration, explained. Compulsory
arbitration is a system whereby the parties to a
dispute are compelled by the government to forego
their right to strike and are compelled to accept the
resolution of their dispute through arbitration by a
third party. The essence of arbitration remains since
a resolution of a dispute is arrived at by resort to a
disinterested third party whose decision is final and
207Union of Filipro Employers v Nestle, G.R. No. 158930-31 (2006).
208Union of Filipro Employers v Nestle, G.R. No. 158930-31 (2006).
209Supra.
210PAL v NLRC, 180 SCRA 555 (1989).
211GTE Directories Corp. v Sanchez, GTE Directories EU, G.R. No.
76219 (1991).
LA SALLIAN COMMISION ON BAR OPERATIONS
48 LABOR LAW
binding on the parties, but in compulsory
arbitration, such a third party is normally appointed
by the government.212
Even in the exercise of his power of compulsory
arbitration under Article 278(g) of the Labor Code,
the Secretary must follow the law. 213
A voluntary, instead of compulsory, mode of dispute
settlement is the general rule. The State encourages
an environment wherein employers and employees
themselves must deal with their problems in a
manner that mutually suits them best.214
RATIONALE OF COMPULSORY ARBITRATION
To bring about soonest a fair and just solution to the
dispute. The purpose of a presidential certification is
nothing more than to bring about soonest, thru
arbitration by the industrial court, a fair and just
solution of the differences between an employer and
his workers regarding the terms and conditions of
work in the industry concerned which in the opinion
of the President involves the national interest, so
that the damage such employer-worker dispute
might cause upon the national interest may be
minimized as much as possible, if not totally averted
by avoiding the stoppage of work as a result of a
strike or lock out or any lagging of the activities of
the industry or the possibility of these contingencies
which might cause detriment to such national
interest. This is the foundation of that court's
jurisdiction in what may be termed as a certification
case.215
It may also be added that due to petitioner's
intransigent refusal to attend the conciliation
conferences called after the union struck,
assumption of jurisdiction by the Secretary of Labor
and the issuance of a return-to-work order had
become the only way of breaking the deadlock and
maintaining the status quo ante pending resolution
of the dispute. The Solicitor General was correct
when he stated that by assuming jurisdiction over
the labor dispute, the Acting Secretary of Labor
merely provided for a formal forum for the parties to
ventilate their positions with the end in view of
settling the dispute.216
To call to a halt a pending strike by requiring that
the status quo prior to its declaration be
preserved.217
PROCESS INITIATION – CERTIFICATION DISPUTE
Initiating party:
212Luzon Dev’t Bank v Association of Luzon Dev’t Bank Employees,
249 SCRA 162 (1995).
213Phimco Industries v Brillantes, G.R. No. 120751 (1999).
214Manila Diamond Hotel EU v SOLE, 447 SCRA 97 (2004).
215Manila Cordage v CIR, L-25943 (1971).
216PSBA v Noriel, 163 SCRA 402 (1988).
217NFL v MOLE, 124 SCRA 612 (1983).
 LABOR RELATIONS
1. SOLE
“When, in his opinion, there exists a labor dispute
causing or likely to cause a strike or lockout in an
industry indispensable to the national interest, the
Secretary of Labor and Employment may assume
jurisdiction over the dispute and decide it or certify
the same to the Commission for compulsory
arbitration. Such assumption or certification shall
have the effect of automatically enjoining the
intended or impending strike or lockout as specified
in the assumption or certification order. If one has
already taken place at the time of assumption or
certification, all striking or locked out employees
shall immediately return-to-work and the employer
shall immediately resume operations and readmit all
workers under the same terms and conditions
prevailing before the strike or lockout. The Secretary
of Labor and Employment or the 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.
xxx”218
Great breadth of discretion given to Secretary of
Labor under Article 278 (g).219
The discretion to assume jurisdiction may be
exercised by the SOLE without necessity of prior
notice or hearing given to any of the parties.220
The Secretary of Labor has the discretion to
determine what industries are indispensable to
national interest.221
2. PRESIDENT – 269(G)
To certify a labor dispute to the Industrial Court is
the prerogative of the President. The Supreme Court
will not interfere with such prerogative, much less
curtail its exercise. 222
Assumption and certification orders are executory in
character and are to be strictly complied with by the
parties even during the pendency of any petition
questioning their validity. 223
AWARDS AND ORDERS
A union’s demand for a signing bonus bereft of any
factual or legal basis where the CBA was not
concluded in the bargaining table, the SOLE abuses
her discretion when she extends to the union an
award not asked for, let alone negotiated.224
218 Art 278(g)
219PLDT v Manggagawang Komunikasyon s aPilipinas, 463 SCRA 418
(2005).
220Capitol Medical v Trajano, 462 SCRA 457 (2005).
221Philtread WU v Confesor, 269 SCRA 393 (1997).
222Feati University v Bautista, 18 SCRA 1191 (1966).
223Union of Filipro Employees v Nestle, 192 SCRA 396 (1990).
224Nissin Motors v SOLE, 491 SCRA 602 (2006).
LA SALLIAN COMMISION ON BAR OPERATIONS
49 LABOR LAW
Arbitral award; retroactive effect.CBA arbitral
awards granted after six months from the expiration
of the last CBA shall retroact to such time agreed
upon by both employer and the employees or their
union. Absent such an agreement as to retroactivity,
the award shall retroact to the first day after the
six-month period following the expiration of the last
day of the CBA should there be one. In the absence
of a CBA, the Secretary's determination of the date
of retroactivity.225
The Labor Secretary’s authority to assume
jurisdiction over a labor dispute must include and
extend to all questions and controversies arising
therefrom, including cases over which the labor
arbiter has jurisdiction.226
Option – Submit case Voluntary arbitration after
certification
Art 278 (h)
(h) Before or at any stage of the compulsory
arbitration process, the parties may opt to submit
their dispute to voluntary arbitration.
COMPULSORY ARBITRATION AND LABOR RIGHTS
The assumption of jurisdiction is in the nature of
police power measure. This is done for the
promotion of the common good considering that a
prolonged strike or lockout can be inimical to the
national economy. The Secretary of Labor acts to
maintain industrial peace. Thus, his certification for
compulsory arbitration is not intended to impede
the workers' right to strike but to obtain a speedy
settlement of the dispute. 227
EFFECT OF DEFIANCE OF ASSUMPTION OR
CERTIFICATION ORDERS
A strike undertaken despite Secretary’s issuance of an
assumption or certification order becomes a prohibited
activity and thus, illegal.228
Once the SOLE assumes jurisdiction over a labor
dispute, such jurisdiction should not be interfered
with by the application of the coercive processes of
a strike or lockout. Defiance of the assumption order
or a return-to work order by a striking employee,
whether a union officer or a member, is an illegal
act and, therefore, a valid ground for loss of
employment status.229
225Manila Electric Co. v SOLE, G.R. No. 127598 (2000).
226InterphilLab EU v Interphil, 372 SCRA 658 (2001).
227Philtread Workers Union v Confesor, 296 SCRA 393 (1997).
228Philcom EU v Philcom 495 SCRA 214 (2006).
229Manila Hotel Employees v Manila Hotel, 517 SCRA 349 (2007).
 LABOR RELATIONS 50 LABOR LAW

II. Jurisdiction and LABOR

DIRECTOR
ARBITER VS. REGIONAL

Remedies
LABOR ARBITER (Art. REGIONAL DIRECTOR
A. LABOR ARBITER 224) (Art. 129)
A.1. JURISDICTION 1. Money claim 1. Money claim is not
accompanied with a claim accompanied
1. Unfair labor practice cases (Art. 224) of by reinstatement, AND
2. Termination disputes; (Art. 224) Reinstatement, regardless
3. If accompanied with a claim for reinstatement, of amount, OR
those cases that workers may file involving
2. Money claim exceeds 2. Money claim does not
wages, rates of pay, hours of work and other
P5,000, whether exceed P5,000
terms and conditions of employment; (Art. 224)
or not there is a claim for
4. Claims for actual, moral, exemplary and other
reinstatement.
forms of damages arising from the employer-
employee relations (Art. 224)
5. Cases arising from any violation of Article 279 of
this Code, including questions involving the A.2. REQUIREMENTS TO PERFECT APPEAL TO
legality of strikes and lockouts (Art. 224) NLRC
6. Except claims for Employees Compensation, Decisions, awards, or orders of the Labor Arbiter
Social Security, Medicare and maternity shall be final and executory unless appealed to the
benefits, all other claims arising from employer- Commission by any or both parties within ten (10)
employee relations, including those of persons calendar days from receipt thereof; and in case of
in domestic or household service, involving an decisions or resolutions of the Regional Director of
amount exceeding five thousand pesos the Department of Labor and Employment pursuant
(P5,000.00) regardless of whether accompanied to Article 129 of the Labor Code, within five (5)
with a claim for reinstatement. (Art. 224) calendar days from receipt thereof. If the 10th or
7. Wage distortion disputes in unorganized 5th day, as the case may be, falls on a Saturday,
establishments not voluntarily settled by the Sunday or holiday, the last day to perfect the appeal
parties (R.A. 6727 and Art. 124); shall be the first working day following such
8. Enforcement of compromise agreements when Saturday, Sunday or holiday (Rule VI, Section 1, 2011
there is non-compliance by any of the parties NLRC Rules of Procedure).
(Art. 233)
9. Money claims arising out of employer-employee REQUISITES FOR PERFECTION OF APPEAL. (Rule VI,
relationship or by virtue of any law or contract, Section 4, 2011 NLRC Rules of Procedure). (a) The
involving Filipino workers for overseas appeal shall be:
deployment, including claims for actual, moral, 1. filed within the reglementary period provided in
exemplary and other forms of damages (R.A. Section 1 of this Rule;
8042, as amended by R.A. 10022) 2. verified by the appellant himself/herself in
10. Other cases as may be provided by law. accordance with Section 4, Rule 7 of the Rules
of Court, as amended;
3. in the form of a memorandum of appeal which
shall state the grounds relied upon and the
arguments in support thereof, the relief prayed
for, and with a statement of the date the
appellant received the appealed decision, award
or order;
4. in three (3) legibly typewritten or printed
copies; and
5. accompanied by:
a. proof of payment of the required appeal fee
and legal research fee,
b. posting of a cash or surety bond as provided
in Section 6 of this Rule, and
c. proof of service upon the other parties.

A mere notice of appeal without complying with the

other requisites aforestated shall not stop the
running of the period for perfecting an appeal.

The appellee may file with the Regional Arbitration

LA SALLIAN COMMISION ON BAR OPERATIONS

 LABOR RELATIONS
Branch or Regional Office where the appeal was filed
his/her answer or reply to appellant's memorandum
of appeal, not later than ten (10) calendar days from
receipt thereof. Failure on the part of the appellee
who was properly furnished with a copy of the
appeal to file his/her answer or reply within the said
period may be construed as a waiver on his/her part
to file the same.
Subject to the provisions of Article 218 (now 225) of
the Labor Code, as amended, once the appeal is
perfected in accordance with these Rules, the
Commission shall limit itself to reviewing and
deciding only the specific issues that were elevated
on appeal. (4a)
A.3. REINSTATEMENT PENDING APPEAL
Under Article 229 of the Labor Code, the decision of
the [LA] reinstating a dismissed or separated
employee, insofar as the reinstatement aspect is
concerned, shall immediately be executory, even
pending appeal. The employee shall either be
admitted back to work under the same terms and
conditions prevailing prior to his dismissal or
separation or, at the option of the employer, merely
reinstated in the payroll. The posting of a bond by
the employer shall not stay the execution for
reinstatement. Verily, the employer is duty-bound to
reinstate the employee, failing which, the employer
is liable instead to pay the dismissed employee's
salary. (Manila Doctors College and Turla vs. Olones,
G.R. No. 225044, 3 October 2016)
B. NATIONAL LABOR RELATIONS COMMISSION
(NLRC)
B.1. JURISDICTION
1. Exclusive appellate Jurisdiction over cases
decided by Labor Arbiters (Art 224[b])
2. Exclusive appellate Jurisdiction over cases
decided by DOLE regional directors under Art
129 on small money claims
3. Petitions for injunctions or temporary
restraining order under Art. 225 (e).
GROUNDS OF APPEAL FROM LA TO NRLC (Rule VI,
Section 2, 2011 NLRC Rules of Procedure)
a. If there is prima facie evidence of abuse of
discretion on the part of the Labor Arbiter or
Regional Director;
b. If the decision, award or order was secured
through fraud or coercion, including graft and
corruption;
c. If made purely on questions of law; and/or
d. If serious errors in the findings of facts are
raised which, if not corrected, would cause
grave or irreparable damage or injury to the
appellant.
LA SALLIAN COMMISION ON BAR OPERATIONS
51 LABOR LAW
REVERSAL OF LA DECISION BY NLRC
However, in the event that the LA's decision is
reversed by a higher tribunal, the employer's duty to
reinstate the dismissed employee is effectively
terminated. This means that an employer is no
longer obliged to keep the employee in the actual
service or in the payroll. The employee, in turn, is
not required to return the wages that he had
received prior to the reversal of the LA's decision.
Notwithstanding the reversal of the finding of illegal
dismissal, an employer, who, despite the LA's order
of reinstatement, did not reinstate the employee
during the pendency of the appeal up to the reversal
by a higher tribunal may still be held liable for the
accrued wages of the employee, i.e., the unpaid
salary accruing up to the time of the reversal. By
way of exception, an employee may be barred from
collecting the accrued wages if shown that the delay
in enforcing the reinstatement pending appeal was
without fault on the part of the employer. (Manila
Doctors College and Turla vs. Olones, G.R. No.
225044, 3 October 2016)
C. COURT OF APPEALS
C.1. APPEAL VIA RULE 65, RULES OF COURT
Section 2, Rule 43 of the 1997 Rules of Civil
Procedure is explicit that Rule 43 shall not apply to
judgments or final orders issued under the Labor
Code of the Philippines. The correct remedy that
should have been availed of is the special civil action
of certiorari under Rule 65. The party may
seasonably avail of the special civil action for
certiorari, where the tribunal, board or officer
exercising judicial functions has acted without or in
excess of its jurisdiction, or with grave abuse of
discretion, and praying that judgment be rendered
annulling or modifying the proceedings, as the law
requires, of such tribunal, board or officer. In any
case, St. Martins Funeral Homes v. NLRC (295 SCRA
494, 1998) settled any doubt as to the manner of
elevating decisions of the NLRC to the CA by holding
that the legislative intendment was that the special
civil action of certiorari was and still is the proper
vehicle for judicial review of decisions of the NLRC.
(Philippine National Bank v. Velasco, G.R. 166096,
September 11, 2008)
D. SUPREME COURT
D.1. RULE 45, RULES OF COURT
Appeal by Certiorari to the Supreme Court
Section 1. Filing of petition with Supreme Court. —
A party desiring to appeal by certiorari from a
judgment or final order or resolution of the Court of
Appeals, the Sandiganbayan, the Regional Trial Court
or other courts whenever authorized by law, may file
with the Supreme Court a verified petition for
 LABOR RELATIONS
review on certiorari. The petition shall raise only
questions of law which must be distinctly set forth.
(1a, 2a)
E. BUREAU OF LABOR RELATIONS (BLR)
E.1. JURISDICTION
Art. 232. Bureau of Labor Relations — The Bureau
of Labor Relations and the Labor Relations Division in
the regional offices of the Department of Labor shall
have original and exclusive authority to act, at their
own initiative or upon request of either or both
parties, on all
inter-union and intra-union conflicts, and all
disputes, grievances or problems arising from or
affecting labor-management relations in all work
places whether agricultural or non-agricultural,
except those arising from the implementation or
interpretation of collective bargaining agreements
which shall be subject of grievance procedure
and/or voluntary arbitration.
F. NATIONAL CONCILIATION AND MEDIATION
BOARD
Sec. 22, EO 126
The National Conciliation and Mediation Board, is
hereby created and which shall absorb the
conciliation, mediation and voluntary arbitration
functions of the Bureau of Labor Relations.
F.1. CONCILIATION VS. MEDIATION
Conciliation – is conceived of as a mild form of
intervention by a neutral third party, the
Conciliator-Mediator, relying on his persuasive
expertise, who takes an active role in assisting
parties by trying to keep disputants talking,
facilitating other procedural niceties, carrying
messages back and forth between the parties, and
generally being a good fellow who tires to keep
things calm and forward-looking in a tense
situation.230
Mediation – is a mild intervention by a neutral third
party, the Conciliator-Mediator, whereby he starts
advising the parties or offering solutions or
alternatives to the problems with the end in view of
assisting them towards voluntarily reaching their
own mutually acceptable settlement of the
dispute231
230 NCMB. http://co.ncmb.ph/conciliation-mediation/
231 Id.
LA SALLIAN COMMISION ON BAR OPERATIONS
52 LABOR LAW
F.2. PREVENTIVE MEDIATION
a formal or informal request for conciliation and
mediation assistance sought by either or both parties
to avoid the occurrence of actual labor dispute.232
G. DOLE REGIONAL DIRECTORS
G.1. RECOVERY/ADJUDICATORY POWER
Art. 129. Recovery of wages, simple money claims
and other benefits. — Upon complaint of any
interested party, the Regional Director of the
Department of Labor and Employment or any of the
duly authorized hearing officers of the Department is
empowered, through summary proceeding and after
due notice, to hear and decide any matter involving
the recovery of wages and other monetary claims
and benefits, including legal interest, owing to an
employee or person employed in domestic or
household service or househelper under this Code,
arising from employer-employee relations: Provided,
That such complaint does not include a claim for
reinstatement: Provided further, That the aggregate
money claims of each employee or househelper does
not exceed Five thousand pesos (P5,000.00). The
Regional Director or hearing officer shall decide or
resolve the complaint within thirty (30) calendar
days from the date of the filing of the same. Any
sum thus recovered on behalf of any employee or
househelper pursuant to this Article shall be held in
a special deposit account by, and shall be paid on
order of, the Secretary of Labor and Employment or
the Regional Director directly to the employee or
househelper concerned. Any such sum not paid to
the employee or househelper because he cannot be
located after diligent and reasonable effort to locate
him within a period of three (3) years, shall be held
as a special fund of the Department of Labor and
Employment to be used exclusively for the
amelioration and benefit of workers.
Any decision or resolution of the Regional Director or
hearing officer pursuant to this provision may be
appealed on the same grounds provided in Article
223 of this Code,within five (5) calendar days from
receipt of a copy of said decision or resolution, to
the National Labor Relations Commission which shall
resolve the appeal within ten (10) calendar days
from the submission of the last pleading required or
allowed under its rules.
The Secretary of Labor and Employment or his duly
authorized representative may supervise the
payment of unpaid wages and other monetary claims
and benefits, including legal interest, found owing to
any employee or househelper under this Code.(As
amended by Section 2, Republic Act No. 6715, March
21, 1989)
NCMB. ADMINISTRATIVE - BASED STATISTICS ON ACTUAL STRIKES
232
AND NOTICES/LOCKOUT FILED
 LABOR RELATIONS
Requisites for Regional Director’s Adjudicatory
Power:
1. Claim is presented by an employee or a person
employed in domestic or household service, or
househelper.
2. Claim arises form employer-employee relations
3. Claimant does not seek reinstatement
4. Aggregate money claim of each employee or
househelper does not exceed 5,000 pesos.
(Azucena, Everyone’s Labor Code, p. 121)
H. DOLE SECRETARY
H.1. VISITORIAL AND ENFORCEMENT POWERS
Art. 128. Visitorial and enforcement power.
1. The Secretary of Labor and Employment or his
duly authorized representatives, including labor
regulation officers, shall have access to
employer’s records and premises at any time of
the day or night whenever work is being
undertaken therein, and the right to copy
therefrom, to question any employee and
investigate any fact, condition or matter which
may be necessary to determine violations or
which may aid in the enforcement of this Code
and of any labor law, wage order or rules and
regulations issued pursuant thereto.
2. The Secretary of Labor and Employment or his
duly authorized representatives shall have the
power to issue compliance orders to give effect
to the labor standards provisions of this Code
and other labor legislation based on the findings
of labor employment and enforcement officers
or industrial safety engineers made in the course
of inspection. The Secretary or his duly
authorized representatives shall issue writs of
execution to the appropriate authority for the
enforcement of their orders, except in cases
where the employer contests the findings of the
labor employment and enforcement officer and
raises issues supported by documentary proofs
which were not considered in the course of
inspection. (As amended by Republic Act No.
7730, June 2, 1994).
An order issued by the duly authorized
representative of the Secretary of Labor and
Employment under this Article may be appealed
to the latter. In case said order involves a
monetary award, an appeal by the employer
may be perfected only upon the posting of a
cash or surety bond issued by a reputable
bondingcompany duly accredited by the
Secretary of Labor and Employment in the
amount equivalent to the monetary award in the
order appealed from. (As amended by Republic
Act No. 7730, June 2, 1994)
LA SALLIAN COMMISION ON BAR OPERATIONS
53 LABOR LAW
3. The Secretary of Labor and Employment may
likewise order stoppage of work or suspension of
operations of any unit or department of an
establishment when non-compliance with the
law or implementing rules and regulations poses
grave and imminent danger to the health and
safety of workers in the workplace. Within
twenty-four hours, a hearing shall be conducted
to determine whether an order for the stoppage
of work or suspension of operations shall be
lifted or not. In case the violation is attributable
to the fault of the employer, he shall pay the
employees concerned their salaries or wages
during the period of such stoppage of work or
suspension of operation.
4. It shall be unlawful for any person or entity to
obstruct, impede, delay or otherwise render
ineffective the orders of the Secretary of Labor
and Employment or his duly authorized
representatives issued pursuant to the authority
granted under this Article, and no inferior court
or entity shall issue temporary or permanent
injunction or restraining order or otherwise
assume jurisdiction over any case involving the
enforcement orders issued in accordance with
this Article.
5. Any government employee found guilty of
violation of, or abuse of authority, under this
Article shall, after appropriate administrative
investigation, be subject to summary dismissal
from the service.
6. The Secretary of Labor and Employment may, by
appropriate regulations, require employers to
keep and maintain such employment records as
may be necessary in aid of his visitorial and
enforcement powers under this Code.
Modes of Labor Standards Inspections (RULE III.,
SEC.1, DO 131-B)
1. Joint Assessment (JA);
2. Compliance Visit (CV);
3. Occupational Safety and Health Standards
Investigation (OSHI); or
4. Special Assessment or Visit Establishment
(SAVE).
H.2. POWER TO SUSPEND EFFECTS OF
TERMINATION
The Secretary of the Department of Labor and
Employment may suspend the effects of the
termination pending resolution of the dispute in the
event of a prima facie finding by the appropriate
official of the Department of Labor and Employment
before whom such dispute is pending that the
termination may cause a serious labor dispute or is
in implementation of a mass lay-off. (Art. 292 (b))
 LABOR RELATIONS 54 LABOR LAW

H.3. REMEDIES The Commission, its Regional Offices and the

Regional Directors of the Department of Labor and
The proper remedy to question the decisions or Employment shall not entertain disputes, grievances
orders of the Secretary of Labor is via Petition for or matters under the exclusive and original
Certiorari under Rule 65, not via an appeal to the
jurisdiction of the Voluntary Arbitrator or panel of
OP. For appeals to the OP in labor cases have indeed Voluntary Arbitrators and shall immediately dispose
been eliminated, except those involving national and refer the same to the Grievance Machinery or
interest over which the President may assume Voluntary Arbitration provided in the Collective
jurisdiction. (Pena v. Office of the President, G.R. Bargaining Agreement.
No. 189314, June 15, 2011)
ART. 275. Jurisdiction over other Labor Disputes.
- The Voluntary Arbitrator or panel of Voluntary
I. VOLUNTARY ARBITRATOR Arbitrators, upon agreement of the parties, shall
I.1. JURISDICTION also hear and decide all other labor disputes
including unfair labor practices and bargaining
The original and exclusive jurisdiction of the labor deadlocks.
arbiter over unfair labor practices, termination
disputes, and claims for damages cannot be ART. 224. Jurisdiction of the Labor Arbiters and
arrogated into the powers of voluntary arbitrators in the Commission.
the absence of an express agreement between the
union and the company.233 (c) Cases arising from the interpretation or
implementation of collective bargaining
The Voluntary Arbitrator or Panel of Voluntary agreements and those arising from the
Arbitrators will have original and exclusive interpretation or enforcement of company
jurisdiction over money claims 'arising from the personnel policies shall be disposed of by the
interpretation or implementation of the Collective Labor Arbiter by referring the same to the
Bargaining Agreement and, those arising from the grievance machinery and voluntary arbitration
interpretation or enforcement of company personnel as may be provided in said agreements.
policies', under Article 267."234
I.2. REMEDY
Unresolved grievances. The law grants to voluntary
arbitrators original and exclusive jurisdiction to hear The judgments of voluntary arbitrators shall be
and decide all unresolved grievances arising from the appealable by ordinary appeal to the court of
interpretation or implementation of the Collective appeals under Rule 43 of the Rules of Court. (Rule
Bargaining Agreement and those arising from the 43, Sec. 1, ROC).
interpretation or enforcement of company personnel
policies (Art. 274, Labor Code).235
J. PRESCRIPTION OF ACTIONS
ART. 274. Jurisdiction of Voluntary Arbitrators
PRESCRIPTION OF ACTIONS
and Panel of Voluntary Arbitrators. - The
Voluntary Arbitrator or panel of Voluntary MONEY CLAIMS ART. 306, Labor Code
Arbitrators shall have original and exclusive All money claims arising from
jurisdiction to hear and decide all unresolved employer-employee relations
grievances arising from the interpretation or shall be filed within 3 years from
implementation of the Collective Bargaining the time the cause of action
Agreement and those arising from the interpretation accrued; otherwise they shall be
or enforcement of company personnel policies forever barred.
referred to in the immediately preceding article. ILLEGAL Art. 1146, Civil Code
Accordingly, violations of a Collective Bargaining DISMISSAL Although illegal dismissal is a
Agreement, except those which are gross in violation of the Labor Code, it
character, shall no longer be treated as unfair labor does not fall within the ambit of
practice and shall be resolved as grievances under the term “offense” in Art. 305
the Collective Bargaining Agreement. For purposes of because in illegal dismissal, no
this article, gross violations of Collective Bargaining penalty, fine, or imprisonment is
Agreement shall mean flagrant and/or malicious imposed. Thus, the 4-year
refusal to comply with the economic provisions of prescription in the civil code must
such agreement. apply.
(Callanta v. Carnation Phil., Inc.,
145 SCRA 268 (1986))
233LantexIndustries v CA, 529 v 631 (2007).
234DelMonte v Saldivar, 504 SCRA 192 (2006).
235Sanyo Philippines Workers Union v Canizares, 211 SCRA 361

(1992).

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 LABOR RELATIONS 55 LABOR LAW

UNFAIR LABOR Art. 305, Labor Code

PRACTICE All unfair labor practices shall be
filed with the appropriate agency
within 1 year from accrual of
such unfair labor practice;
otherwise, forever barred.
OFFENSES Art. 305, Labor Code
UNDER THE Offenses penalized under the
LABOR CODE Code and the rules and
regulations shall prescribe in 3
years
ILLEGAL Sec. 12, RA 8042
RECRUITMENT Illegal recruitment cases shall
prescribe in 5 years: Provided; if
economic sabotage is involved, it
shall prescribe in 20 years.

LA SALLIAN COMMISION ON BAR OPERATIONS