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10/18/201010/18/2010 11
REPUBLIC ACT No. 9481AN ACT STRENGTHENING THE WORKERS CONSTITUTIONAL
RIGHT TO SELF-ORGANIZATION, AMENDING FOR THE
PURPOSE PRESIDENTIAL DECREE NO. 442, AS AMENDED,
OTHERWISE KNOWN AS THE LABOR CODE OF THE
PHILIPPINES
ISSUES AND IMPLICATIONS
RENE Y. SORIANO
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What R. A. 9481 Is All About
Amended pertinent provisions of the Labor Code
as well as introduced new ones governing:
1. Registration of labor organizations
2. Chartering and creation of local chapters
3. Effect of petition for cancellation of union
registration on petition for certification election
and certification election proceedings
4. Cancellation of union registration
5. Reportorial requirements of labor organizations
6. Commingling of supervisors and rank-and-file
unions with the same federation or national
union operating in the same establishment
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What R. A. 9481 Is All About. . .
6. Petition for certification election in organized
and unorganized establishments filed by a
national union or federation or local chapter
with a charter certificate
7. Role of employers in certification elections
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Specific Amendments
Art. 234. Requirements of Registration
ART.234-A. (new) CHARTERING AND
CREATION OF A LOCAL CHAPTER
Art. 238. Cancellation of Registration [;Appeal]
ART. 238-A. (new) EFFECT OF A PETITION
FOR CANCELLATION OR REGISTRATION
Art. 239. Grounds for Cancellation of Union
Registration
ART. 239-A. (new) VOLUNTARY CANCELLA-
TION OF REGISTRATION
ART. 242-A. (new) REPORTORIAL REQUIRE-
MENTS
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Specific Amendments. . .
Art. 245. Ineligibility of Managerial Employees
to Join any Labor Organization
ART. 245-A. (new) EFFECT OF INCLUSION
AS MEMBERS OF EMPLOYEES OUTSIDE
THE BARGAINING UNIT
Art. 256. Representation Issue in Organized
Establishments
Art. 257. Petitions in Unorganized Establish-
ments
ART. 258-A. (new) EMPLOYER AS BY-
STANDER
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CRITICAL ISSUESCRITICAL ISSUES
Mass deletion of grounds for cancellation ofMass deletion of grounds for cancellation of
registration of labor unionsregistration of labor unions
NonNon--disclosure of membership of chartereddisclosure of membership of chartered
locals/chapters in representation issueslocals/chapters in representation issues
Commingling of supervisors and rankCommingling of supervisors and rank--andand--filefile--
unions in the same establishment affiliated withunions in the same establishment affiliated with
the same national union/federationthe same national union/federation
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Non-controversial amendments. . .
Art. 258-A. (new) provides that in a petition for
certification election, the employer is
considered not a party thereto with concomitant
right to oppose. Its participation is limited to:
1. Being notified of the petition and
2. Submitting the list of employees during the
pre-election conference
This provision is a reiteration of case law
Upon filing of the petition for certification election, the
role of the employer in the certification process
ceases. It becomes merely a bystander (Furusawa RubberPhilippines vs. Secretary of Labor, G. R. No. 121241, 10 December
1997)
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REGISTRATION OF
LABOR ORGANIZATIONS
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Nature of Registration
1. Registration is a condition sine qua non for the
acquisition of legal personality and rights and
privileges granted by law to legitimate labor
organizations
2. Regulation of registration and cancellation of
union registration constitute valid exercise of
police power (Progressive Development Corporation-Pizza Hut
vs. Laguesma, 271 SCRA 603) because activities in which
unions are engaged directly affect public
interest and should be protected (Philippine
Association of Free Labor Unions vs. Secretary of Labor, 27 SCRA41).
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Labor Organizations Qualified to Register
1. Independent unions: membership of at least
20% of all the employees of the collective
bargaining unit where it seeks to operate
2. Federations/national unions: affiliation of at
least 10 locals or chapters each of which is
a recognized collective bargaining agent
Exclusive power to create local chapter and
to act as its agent for purposes of collective
bargaining
3. Chartered local chapter: considered as the
principal for purposes of collective bargaining
but loses personality upon disaffiliation
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Labor Organizations Qualified to Register. . .
4. Industry union
5. Trade union center
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R. A. 9481R. A. 9481BEFORE AMENDMENTBEFORE AMENDMENT
Requirements of Registration: Changes
FEDERATION, NATIONAL FEDERATION, NATIONAL
UNION, INDUSTRY OR UNION, INDUSTRY OR
TRADE UNION CENTER, TRADE UNION CENTER,
INDEPENDENT UNIONINDEPENDENT UNION
Labor organization, association, Labor organization, association,
group of unions or workers. D. O. group of unions or workers. D. O.
No. 40No. 40--03 already provides for the 03 already provides for the
registration of independent unions, registration of independent unions,
federations, national unions as well federations, national unions as well
as locals or chaptersas locals or chapters
Art. 234Art. 234
Applies only to Applies only to
INDEPENDENT UNIONINDEPENDENT UNIONNames of all members comprising Names of all members comprising
at least 20% of all employees in at least 20% of all employees in
collective bargaining unitcollective bargaining unit
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R. A. 9481R. A. 9481BEFORE AMENDMENTBEFORE AMENDMENT
Adopted provisions of D.O. 3Adopted provisions of D.O. 3--
BB--04 with the additional 04 with the additional
provision: provision: The chapter shall The chapter shall
acquire legal personality acquire legal personality
only for the purpose of filing only for the purpose of filing
a petition for certification a petition for certification
lection from the date it was lection from the date it was
issued a charter certificate.issued a charter certificate.
But D.O. No. 3But D.O. No. 3--BB--04 provides that 04 provides that
a registered federation or national a registered federation or national
union may directly create union may directly create
chartered local by submitting under chartered local by submitting under
oath the ff. documents certified by oath the ff. documents certified by
the localthe locals Secretary or Treasurer s Secretary or Treasurer
and attested by its President:and attested by its President:
1. Charter certificate1. Charter certificate
2. Names & addresses of 2. Names & addresses of
chapterchapters officerss officers
3. Constitution and by3. Constitution and by--lawslaws
Art. 234-A (Chartering)No provisionNo provision
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CANCELLATON OF
UNION REGISTRATION
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R. A. 9481R. A. 9481BEFORE AMENDMENTBEFORE AMENDMENT
Grounds for Cancellation
Art. 239Art. 239
1. Same1. Same
2. Deleted2. Deleted
Art. 239Art. 239
1. Misrepresentation, false statement or fraud re 1. Misrepresentation, false statement or fraud re
adoption/ratification of Constitution, Byadoption/ratification of Constitution, By--Laws, Laws,
amendments, minutes of ratification, list of amendments, minutes of ratification, list of
members who took part in ratificationmembers who took part in ratification
2. Failure to submit above documents within 30 2. Failure to submit above documents within 30
days from adoption or ratification of constitution days from adoption or ratification of constitution
and byand by--laws or amendments theretolaws or amendments thereto
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R. A. 9481R. A. 9481BEFORE AMENDMENTBEFORE AMENDMENT
Art. 239Art. 239
3. Misrepresentation/false
statements/fraud re election of
officers, minutes of election of
officers AND list of voters. [,or
failure to submit these
documents together with list of
newly elected/appointed
officers, their postal addresses
within 30 days from election];
Art. 239Art. 239
3. Misrepresentation/false
statements/fraud re election of
officers, minutes of election of
officers/list of voters, failure to
submit these documents
together with list of newly
elected/appointed officers,
their postal addresses within
30 days from election
Grounds for Cancellation. . .
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R. A. 9481R. A. 9481BEFORE AMENDMENTBEFORE AMENDMENT
4.4. DeletedDeleted
5. Deleted5. Deleted
6. Deleted6. Deleted
7. Deleted7. Deleted
4. Failure to submit the annual financial report to 4. Failure to submit the annual financial report to
the Bureau within 30 days after closing of the Bureau within 30 days after closing of
every fiscal year and misrepresentation, false every fiscal year and misrepresentation, false
entries or fraud in preparation of financial report entries or fraud in preparation of financial report
5. Acting as labor contractor or engaging in 5. Acting as labor contractor or engaging in cabocabo
system or in system or in any activity prohibited by lawany activity prohibited by law
6. Entering into 6. Entering into CBAsCBAs which provide terms and which provide terms and
conditions of employment below minimumconditions of employment below minimum
standards established by lawstandards established by law
7. Asking for/accepting attorneys fees/negotiation7. Asking for/accepting attorneys fees/negotiation
fees from employers (constitutes ULP under Art. fees from employers (constitutes ULP under Art.
249) 249)
Grounds for Cancellation. . .
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R. A. 9481R. A. 9481BEFORE AMENDMENTBEFORE AMENDMENT
Art. 239Art. 239
8. Deleted8. Deleted
9. Deleted9. Deleted
10. Deleted10. Deleted
Art. 239Art. 239
8. Checking off special assessments or 8. Checking off special assessments or
any other fees without duly signed any other fees without duly signed
individual written authorization of the individual written authorization of the
membersmembers
9. Failure to submit list of individual 9. Failure to submit list of individual
members to Bureau once a year or members to Bureau once a year or
whenever required by the Bureauwhenever required by the Bureau
10. Failure to comply with the10. Failure to comply with the
requirements under Article 237requirements under Article 237
(maintenance of not less 10 affiliates(maintenance of not less 10 affiliates
by federation/national union)by federation/national union)
Grounds for Cancellation. . .
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R. A. 9481R. A. 9481BEFORE AMENDMENTBEFORE AMENDMENT
Art. 239Art. 239
VOLUNTARY DISSOLUTION BY VOLUNTARY DISSOLUTION BY
THE MEMBERS (new)THE MEMBERS (new)
ART. 239ART. 239--A (new)A (new)
VOLUNTARY CANCELLATION BY VOLUNTARY CANCELLATION BY
2/3 VOTES OF GENERAL 2/3 VOTES OF GENERAL
MEMBERSHIP OF LABOR MEMBERSHIP OF LABOR
ORGANIZATION PROVIDED THAT ORGANIZATION PROVIDED THAT
APPLICATION TO CANCEL APPLICATION TO CANCEL
REGISTRATION IS SUBMITTED BY REGISTRATION IS SUBMITTED BY
ITS BOARD ATTESTED BY ITS ITS BOARD ATTESTED BY ITS
PRESIDENT PRESIDENT
Outside the power of Bureau Outside the power of Bureau
to act which is expresslyto act which is expressly
limited to 3 grounds underlimited to 3 grounds under
amended Art. 239 amended Art. 239
Grounds for Cancellation. . .
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R. A. 9481R. A. 9481BEFORE AMENDMENTBEFORE AMENDMENT
Other Grounds for Cancellation
Art. 238Art. 238
Bureau can cancel Bureau can cancel
only on 3 grounds only on 3 grounds
specified in Art. 239specified in Art. 239
No longer No longer
enforceableenforceable
Art. 238Art. 238
Bureau shall cancel registration after due Bureau shall cancel registration after due
hearing if labor organization no longer meets hearing if labor organization no longer meets
one or more of prescribed requirementsone or more of prescribed requirements
Art. 237Art. 237
Registration of federation/national union Registration of federation/national union
valid only if it has affiliation of at least 10 valid only if it has affiliation of at least 10
locals or chapter duly recognized as locals or chapter duly recognized as
collective bargaining agents in respective collective bargaining agents in respective
establishments establishments
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R. A. 9481R. A. 9481BEFORE AMENDMENTBEFORE AMENDMENT
Other Grounds for Cancellation
No longer No longer
enforceableenforceableArt. 241 Art. 241 (rights & conditions of membership) (rights & conditions of membership)
Any violation of rights and conditions shall be Any violation of rights and conditions shall be
a ground for cancellation of union registration a ground for cancellation of union registration
or expulsion of officer from office whichever is or expulsion of officer from office whichever is
appropriateappropriate
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10/18/201010/18/2010 2222
Reportorial Requirements: Art. 232Reportorial Requirements: Art. 232--A (new)A (new)
Documents required to be submitted to theDocuments required to be submitted to the
Bureau by a legitimate labor organization:Bureau by a legitimate labor organization:
1. Constitution and by1. Constitution and by--laws, amendments thereto, minuteslaws, amendments thereto, minutes
of ratification and list of members who took part within 30of ratification and list of members who took part within 30
days from adoption or ratificationdays from adoption or ratification
2. List of officers, minutes of election and list of voters with2. List of officers, minutes of election and list of voters withinin
30 days from election30 days from election
3. Annual financial report within 30 days after close of every3. Annual financial report within 30 days after close of every
fiscal yearfiscal year
4. List of members at least once a year or as required by4. List of members at least once a year or as required by
the Bureauthe Bureau
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Reportorial Requirements: Art. 232Reportorial Requirements: Art. 232--A. . .A. . .
Failure to comply not a ground for cancellationFailure to comply not a ground for cancellation
but subjects erring officers or members tobut subjects erring officers or members to
suspension, expulsion from membership or anysuspension, expulsion from membership or any
appropriate penaltyappropriate penalty
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Commingling: Supervisors & Rank-and-File Unions
Art. 245. Ineligibility of Managerial Employees to Join AnyIneligibility of Managerial Employees to Join Any
Labor Organization; Right of Supervisory Employees. Labor Organization; Right of Supervisory Employees.
Managerial employees are not eligible to join, assist or formManagerial employees are not eligible to join, assist or form
any labor organization. Supervisory employees shall not beany labor organization. Supervisory employees shall not be
eligible for membership in [a labor organization] THE eligible for membership in [a labor organization] THE
COLLECTIVE BARGAINING UNIT of the rankCOLLECTIVE BARGAINING UNIT of the rank--andand--filefile
employees but may join, assist or form separateemployees but may join, assist or form separate
COLLECTIVE BARGAINING UNITS AND/OR LEGITIMATECOLLECTIVE BARGAINING UNITS AND/OR LEGITIMATE
labor organizations of their own. THE RANK AND FILElabor organizations of their own. THE RANK AND FILE
UNION AND THE SUPERVISORUNION AND THE SUPERVISORS UNION OPERATINGS UNION OPERATING
WITHIN THE SAME ESTABLISHMENT MAY JOIN THEWITHIN THE SAME ESTABLISHMENT MAY JOIN THE
SAME FEDERATION OR NATIONAL UNIONSAME FEDERATION OR NATIONAL UNION
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Commingling. . .
1. As supported by jurisprudence, commingling is
contrary to public policy, undermines industrial
stability and destructive to employers
2. The peculiar role of supervisors is such that
while they are not managers, when they
recommend action implementing policy or ask
for the discipline or dismissal of subordinates,
they identify with the interests of the employer
and may act contrary to the interests of the
rank-and-file (Atlas Lithographic Services, Inc. vs. Laguesma,et al., 205 SCRA 12)
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Commingling. . .
3. Conflict of interest may arise in the areas of
discipline, collective bargaining and strike
a) Members of the supervisors union might
refuse to carry out disciplinary measures
against their co-affiliate rank-and-file
employees
b) In the area of bargaining, their interest can
not be considered identical. The needs of
one are different from those of the other
c) In the event of a strike, the federation might
influence the supervisors union to conduct
a sympathy strike on the sole basis of
affiliation (Atlas Lithographic Services, Inc. supra)supra)
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Mixture in Union Membership
1. Art. 245-A. (new): provides that inclusion as
members of employees outside the bargaining
unit not a ground for cancellation
2. This new provision reiterates what is already
provided by case law
a) Art. 245 merely prescribes a rule of membership
eligibility, and should not be a ground for cancellation
of union registration (SPI Technologies vs. Baldoz, G.R. No.
137422, 8 March 1999)
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Art. 245-A. . . .
a) In cases of mixture in union membership, the
procedure provided in purging the ranks of a rank-and-
file union with ineligible members may be through the
following:
1) mechanisms under the union constitution and
by-laws;
2) inclusion-exclusion proceedings during the pre-
election conference pursuant to Section 2, Rule XII.
(Philippine Telegraph and Telephone Corp. Vs. Laguesma, G. R.
No. 101730, 17 June 1993, 223 SCRA 452)
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Art. 245-A. . . .
3. The inclusion-exclusion proceedings are
primarily conducted to determine the eligibility
of voters during certification elections
4. But this process is vitiated in the case of
federations with chartered locals participating
in certification elections inasmuch as
they are not required to disclose their member-
ship and officers
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NONNON--DISCLOSURE ISSUESDISCLOSURE ISSUES
INVOLVING REPRESENTATION ININVOLVING REPRESENTATION IN
ESTABLISHMENTS,ESTABLISHMENTS,
ORGANIZED AND UNORGANIZEDORGANIZED AND UNORGANIZED
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Majority Representation, How Acquired
1. Voluntary recognition (Sec. 1[bbb], Rule I; Rule VII,D.O. No. 40-03
In unorganized establishments with only one
legitimate labor organization, employer may
voluntarily recognize representation status
2. Certification election (Sec. 1[h], Rule 1; Rule VIII, D.O.No. 40-03)
a) Art. 256: Representation issue in organized
establishment
b) Petitions in unorganized establishments
c) Art. 258: When employer may file petition
d) Art. 259: Appeal from certification election
orders
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Majority Representation, How Acquired. . .
3. Run-off election
When an election for 3 or more choices results
in no choice receiving a majority of the valid
votes cast, run-off election is conducted
between the 2 labor unions receiving the
highest number of votes (Art. 256)
4. Consent election (Sec. 1[h], Rule 1; Sec. 10, Rule VIII, D.O. No. 40-03)
An election voluntarily agreed upon by 2 or
more contending unions with or without the
intervention of DOLE to determine majority
representation of the workers in the appropriate
collective bargaining unit
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Representation Issue in Organized
Establishments (Art. 256, as amended)
1. A verified petition questioning majority status of
incumbent bargaining agent is filed before
DOLE by a legitimate labor organization
including national union/federation which
has issued charter certificate to its local
chapter participating in the certification
election or local chapter which has been
issued a charter certificate by the national
union or federation
2. Petition filed within the last 60 days of the 5th
year of the CBA (contract-bar rule)
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Representation Issue in Organized
Establishments. . .
3. Med3. Med--Arbiter shall automatically order electionArbiter shall automatically order election
when petition is supported by written consentwhen petition is supported by written consent
of at least 25% of all employees in theof at least 25% of all employees in the
collective bargaining unitcollective bargaining unit
4. 4. If petition is filed by a national union orIf petition is filed by a national union or
federation, it shall not be required tofederation, it shall not be required to
disclose the names of the local chapterdisclose the names of the local chapterss
members and officersmembers and officers
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Representation Issue in Organized
Establishments. . .
5. Implications:5. Implications:
a) Federation is exempted from submitting thea) Federation is exempted from submitting the
25% written consent of all employees25% written consent of all employees
b) Exemption grossly iniquitous and unfair forb) Exemption grossly iniquitous and unfair for
incumbent bargaining agent as well asincumbent bargaining agent as well as
employer who have no way of knowing employer who have no way of knowing
whether chartered local members includewhether chartered local members include
nonnon--eligible employees such as confidentialeligible employees such as confidential
employees and supervisorsemployees and supervisors
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Petitions in UnorganizedPetitions in Unorganized
Establishments Establishments (Art. 257)(Art. 257)
1.1. Establishment has no certified collectiveEstablishment has no certified collective
bargaining agentbargaining agent
2.2. The MedThe Med--Arbiter shall automatically conductArbiter shall automatically conduct
a certification election upon filing of a petitiona certification election upon filing of a petition
3.3. By legitimate labor organization, By legitimate labor organization, including a
national union/federation which has issued
a charter certificate to its local chapter
participating in the certification election or
local chapter which has been issued a
charter certificate by the national union or
federation
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Petitions in UnorganizedPetitions in Unorganized
Establishments. . .Establishments. . .
4. If petition is filed by a national union or4. If petition is filed by a national union or
federation, it shall not be required to federation, it shall not be required to
disclose the names of the local chapterdisclose the names of the local chapterss
members and officersmembers and officers
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