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Title V
COVERAGE
Article 243. Coverage and employees right to self-organization. All
ersons employed in commercial, indstrial and agricltral
nterprises and in religios, charita!le, medical, or edcationalnstittions, "hether operating for profit or not, shall have the right to
elf-organization and to form, #oin, or assist la!or organizations of
heir o"n choosing for prposes of collective !argaining. Am!lant,
ntermittent and itinerant "or$ers, self-employed people, rral"or$ers and those "ithot any definite employers may form la!or
rganizations for their mtal aid and protection. %As amended !y
&atas 'am!ansa &ilang (), *ay 1, 1+).
. ORGANIZING IN GENERAL
/he rights to organize and to !argain, in a general sense, are given not
0clsively to employees. ven "or$ers "ho are not employees of
ny particlar employer may form their organizations to protect their
nterests.
nder Art. 243 of this Code, the right to organize refers also toorming, #oining or assisting a labororganization. Connected to Art.4 this right carries "ith it the right to engage in grop action,
rovided it is peacefl, to spport the organizations o!#ective "hich
s not necessarily !argaining !t, simply, to aid and protect its
mem!ers. &t this $ind of grop action mst !e differentiated from
tri$e "hich, !ecase it is "or$ stoppage, mst o!serve certain
eglation other"ise, the stri$e may !e declared illegal and its leaders
may !e thro"n ot of their #o!s.
.1 Coverage of the 5ight to 6rganize 0ceptions
/he right to form, #oin or assist a la!or organization is granted to all
inds of employees of all $inds of employers7p!lic or private,rofit or non-profit, commercial or religios. /heir sal form of
rganization is a nion and the sal prpose is collective !argaining
"ith their employers.
&t the seemingly all-inclsive coverage of 8all persons9 in Article
43 actally admits e0ceptions. nder Art. 24:, for instance,managerial employees, regardless of the $ind of organization "here
hey are employed, may not #oin, assist or form any la!or
rganization, meaning a la!or nion.
Accordingly, managerial employees cannot, in the a!sence of an
greement to the contrary, !e allo"ed to share in the concessions
!tained !y the la!or nion throgh collective negotiation. 6ther"ise,
hey "old !e e0posed to the temptation of collding "ith the nionring the negotiations to the detriment of the employer. ;o"ever,
here is nothing to prevent the employer from granting !enefits to
managerial employees e
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B.6. Fo. 4)-)3 allo"s and defines a 8"or$ers association9 as one
"hich is organized for the mtal aid and protection of its mem!ers or
or any legitimate prpose other than collective !argaining.
. E!CEPTION" INTERNATIONAL ORGANIZATIONS
A certification election cannot !e condcted in an international
rganization "hich the 'hilippine Government has granted immnity
rom local #risdiction.
/he grant of sch immnity is a political etreor these immnities is the assrance of nimpeded performance of their
nctions !y the agencies concerned.
3 Labors Basic Rights Remain7/he immnity of nternational Catholic*igration Commission %C*C and the nternational 5ice 5esearchnstittion %55 from local #risdiction !y no means deprives la!or of itsasic rights, "hich are garanteed !y Article , =ection 1, Article ,
ection , and Article H, =ection 3, of the 1+( Constittion andmplemented !y Articles 243 and 24 of the @a!or Code.
4 ertification !lection Barred by Immunity7/he immnity granted !eingfrom every form of legal process e0cept in so far as in any particlar casehey have e0pressly "aived their immnity,? it is inaccrate to state that aertification election is !eyond the scope of that immnity for the reason thatis not a sit against C*C. A certification election cannot !e vie"ed as an
ndependent or isolated process. t cold trigger off a series of events in theollective !argaining process together "ith related incidents andor concertedctivities, "hich cold inevita!ly involve C*C in the ?legal process,? "hichncldes 8any penal, civil and administrative proceedings.9 /he eventality of
Cort litigation is neither remote and from "hich international organizationsre precisely shielded to safegard them from the disrption of their
nctions. Clases on #risdictional immnity are said to !e standardrovisions in the constittions of international 6rganizations. 8/he immnity
overs the organization concerned, its property and its assets...9
:.1 Eaiver of mmnity
Eaiver of its immnity is discretionary to 55. Eithot sch e0
"aiver the F@5C or its la!or ar!iters have no #risdiction over
even in cases of alleged illegal dismissal of any of its employees.
:.2 Ioreign Eor$ers
Ioreigners, "hether natral or #ridical, as "ell as foreign corporation
strictly prohi!ited from engaging directly or indirectly in all forms of nion activities. ;o"ever, aliens "or$ing in the contry "ith valid
permits may e0ercise the right to self-organization if they are nationalscontry that grants the same or similar rights to Iilipino "or$ers. %Art. 2
%. E!CEPTION" RELIGIOUS OB&ECTORS' IGLESIA
CRISTO MEMBERS
nder the ndstrial 'eace Act %1+:3 "hich preceded the @a!or C
%and even nder the present Code the employer and the nion c
enter into a 8closed shop9 agreement "hich "old compel emplo
to !ecome nion "or$ers as a condition of contined employm
&t in 1+1 5.A. Fo. 33:) "as passed to e0empt from
complsory nion mem!ership the follo"ers of any religios
%sch as the glesia ni Cristo "hose teachings for!id mem!ershla!or nions. /he constittionality of 5.A. Fo. 33:) "as phel
the =preme Cort in "ictoriano #$ !lizalde.
t may not !e amiss to point ot here that the free e0ercise of relig
profession or !elief is sperior to contract rights. n case of con
the latter mst, therefore, yield to the former.
.1 Boes the 0emption =till =tandJ
.2 glesia Fi Cristo *em!ers *ay Iorm and Koin 6"n nion
Article 244. 5ight of employees in the p!lic service. mployegovernment corporations esta!lished nder the Corporation
shall have the right to organize and to !argain collectively "ith
respective employers. All other employees in the civil service
have the right to form associations for prposes not contrary to
%As amended !y 0ective 6rder Fo. 111, Becem!er 24, 1+.
1. GOVERNMENT EMPLOYEES( RIGHT TO ORGAN
LIMITATIONS
/he highest la" of the land garantees to government employee
right to organize and to negotiate, !t not the right to stri$e.
1.1 @imited 'rpose
/he e0tent of the government employees> right of self-organiz
differs significantly from that of employees in the private sector.
latter>s right of self-organization, i.e., ?to form, #oin or assist
organizations for prposes of collective !argaining,? admit
incldes the right to deal and negotiate "ith their respe
employers in order to fi0 the terms and conditions of employmen
also, to engage in concerted activities for the attainment of
o!#ectives, sch as stri$es, pic$eting, !oycotts. &t the righgovernment employees to ?form, #oin or assist emplo
organizations of their o"n choosing? nder 0ective 6rder Fo
is not regarded as e0isting or availa!le for ?prposes of colle
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argaining,? !t simply ?for the frtherance and protection of their
nterests.?
n other "ords, the right of Government employees to deal and
egotiate "ith their respective employers is not organizations and appropriate governmentthorities.?
Beclared to !e >not negotia!le> are matters ?that re organizations shall register "ith the
=ervice Commission and the Bepartment of @a!or and mploymentapplication shall !e filed "ith the &rea of @a!or 5elations o
Bepartment "hich shall process the same in accordance "ith the provisiothe @a!or Code of the 'hilippines, as amended. Applications may also !e
"ith the 5egional 6ffices of the Bepartment of @a!or and mployment "shall immediately transmit the said applications to the &rea of @
5elations "ithin three %3 days from receipt thereof.
=ec. . pon approval of the application, a registration certificate !e ito the organization recognizing it as a legitimate employees> organizationthe right to represent its mem!ers and nderta$e activities to frthedefend its interest. /he corresponding certificates of registration sha
#ointly approved !y the Chairman of the Civil =ervice Commission=ecretary of @a!or and mployment. %.6. Fo. 1)
3. CERTIFICATION ELECTION IN GOVERNM
CORPORATION
A certification election to choose the nion that "ill represen
employees may !e condcted !y the &rea of @a!or 5elations
government corporation, "hether governed !y the @a!or Code oCivil =ervice rles.
3.1 lection of 6fficers in Government nions
t is
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ven temporary employees en#oy the !asic right to form organization
r association for prposes not contrary to la".
nder Art. 2((%c of the @a!or Code, 8any employee, "hether
mployed for a definite period of not, shall !eginning on his first day
f service, !e considered an employee for prposes of mem!ership inny la!or nion.9
Article 24:. neligi!ility of managerial employees to #oin any la!orrganization 5ight of =pervisory mployees. - *anagerial
mployees are not eligi!le to #oin, assist or form any la!or
rganization. =pervisory employees shall not !e eligi!le for
mem!ership in the collective !argaining nit of the ran$-and-filemployees !t may #oin, assist or form separate collective !argaining
nits andor legitimate la!or organizations of their o"n. /he ran$-and-
ile nion and the spervisors nion operating "ithin the same
sta!lishment may #oin the same federation or national nion. %As
mended !y =ection 1, 5ep!lic Act Fo. (1:, *arch 21, 1++ and
ection , 5ep!lic Act Fo. +41 "hich lapsed into la" on *ay 2:,
))( and !ecame effective on Kne 14, 2))(.
. CATEGORIES OF EMPLOYEES
5A (1: "hich too$ effect on *arch 21, 1++ %1: days after its
!lication in the ?'hilippines Baily n principal responsi!ilities are to direct the activities that implementheir organizations> policies and to !alance the demands of their speriors
"ith the capacities of their s!ordinates. A plant manager in an electronicsirm is an e0ample of a middle manager.
/6' *AFAG5= 7 Composed of a comparatively small grop of
0ectives, top management is responsi!le for the overall management of therganization. t esta!lishes operating policies and gides the organization>snteractions "ith its environment. /ypical titles of top managers are ?chief0ective officer,? ?president,? and ?senior vice-president.? Actal titles vary
rom one organization to another and are not al"ays a relia!le gide to
mem!ership in the highest management classification.
As can !e seen from this description, a distinction e0ists !et"een those
have the athority to devise, implement and control strategic and operatpolicies %top and middle managers and those "hose tas$ is simply to ethat sch policies are carried ot !y the ran$-and-file employees oorganization %first-level managersspervisors. Ehat distingishes them
the ran$-and-file employees is that they act in the interest of the employspervising sch ran$-and-file employees.
?*anagerial employees? may therefore !e said to fall into t"o di
categoriesD the ?managers? per se, "ho compose the former grop desca!ove, and the ?spervisors? "ho form the latter grop. Ehether they !to the first or the second category, managers, #is%a%#is employersli$e"ise, employees.
2.2 Constittionality of the 'rohi!ition
/he
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/he pro!lem "as that althogh the ndstrial 'eace Act defined a
spervisor,9 it failed to define a 8manager9 or 8managerial
mployee.9 =o the s e0clsion of spervisors from nions of
and-file employees is that sch employees, "hile in the performanspervisory fnctions, !ecome the alter ego of management in the ma$inthe implementing of $ey decisions at the s!-managerial level. Certain"old !e difficlt to find nity or mtality of interests in a !argaining
consisting of a mi0tre of ran$-and-file and spervisory employees. Anis so !ecase the fndamental test of a !argaining nit>s accepta!il"hether or not sch a nit "ill !est advance to all employees "ithin thethe proper e0ercise of their collective !argaining rights. /he Code itse
recognized this, in preventing spervisory employees from #oining nioran$-and-file employees.
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.2 ;o" *anyJ ;o" Ie"J
.3 llegal *i0ed *em!ership *st &e 5aised and 'roved
.4 Cancellation of nion 5egistration on Grond of nclsion ofBiss contention that a conflict of interest may arise
n the areas of discipline, collective !argaining and stri$es. *em!ers of thepervisory nion might refse to carry ot disciplinary measres againstheir co-mem!er ran$-and-file employees. n the area of !argaining, their
nterests cannot !e considered identical. /he needs of one are different fromhose of the other. *oreover, in the event of a stri$e, the national federation
might inflence the spervisors> nion to condct a sympathy stri$e on theole !asis of affiliation.
/hs, if the intent of the la" is to avoid a sitation "here spervisors "oldmerge "ith the ran$ and-file or "here the spervisors> la!or organization"old represent conflicting interests, then a local spervisors> nion sholdot !e allo"ed to affiliate "ith the national federation of nion of ran$-and-
ile employees "here that federation actively participates in nion activity inhe company.
. 5estriction in Affiliation Clarified in&e La Salle
irst, the ran$-and-file employees are directly nder the athority ofhe spervisory employees. =econd, the national federation is actively
nvolved in nion activities in the company. f these t"o conditions
re a!sent, the rle prohi!iting spervisors from affiliating "ith the
mother nion of the ran$-and-file nion does not apply.
/he affiliation of t"o local nions in a company "ith the same national
ederation is not !y itself a negate-on of their independence since in relationo the employer, the local nions are considered as the principals, "hile theederation is deemed to !e merely their agent.
. CONFIDENTIAL EMPLOYEES
.1 Iirst ="ingD nclsion Among 5an$-and-Iile
(.2 =econd ="ingD 0clsion from 5an$-and-Iile
(.3 /hird ="ingD nclsion Among =pervisors
(.4 Iorth ="ingD nclsion Among *onthly 'aid 5an$-and-Iile
(.4a @imited 0clsion Boctrine of Fecessary mplication
A confidential employee is one entrsted "ith confidence on delmatters, or "ith the cstody, handling, or care and protection o
employer>s property. Ehile Art. 24: of the @a!or Code single
managerial employees as ineligi!le to #oin, assist or form any
organization, nder the doctrine of necessary implication, confideemployees are similarly dis
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tressed, ho"ever, that "hen the employee does not have access to
onfidential la!or relations information, there is no legal prohi!ition
gainst confidential employees from forming, assisting, or #oining a
nion.
.4e Fe" C&A may inclde employees e0clded from old C&A0pired C&A may !e *odified, not #st 5ene"ed
/he employer and the nion in an enterprise may negotiate and agree
"hom to cover in their C&A. And they are free to change theirgreementD people e0clded !efore may !e inclded no", or vice
ersa.
. SECURITY GUARDS MAY &OIN RAN*#AND#FILE OR
UPERVISORS UNION
nder the old rles, secrity gards "ere !arred from #oining a la!or
rganization of the ran$-and-file. nder 5A (1:, they may no"
reely #oin a la!or organization of the ran$-and-file or that of the
pervisory nion, depending on their ran$.
Article 24:-A. ffect of inclsion as mem!ers of employees otsidehe !argaining nit. - /he inclsion as nion mem!ers of employeestside the !argaining nit shall not !e a grond for the cancellation
f the registration of the nion. =aid employees are atomatically
eemed removed from the list of mem!ership of said nion.
ntrodced as ne" provision !y =ection +, 5ep!lic Act Fo. +41
"hich lapsed into la" on *ay 2:, 2))( and !ecame effective on Kne
4, 2))(.
Article 24. Fon-a!ridgment of right to self-organization. t shall !e
nla"fl for any person to restrain, coerce, discriminate against or
ndly interfere "ith employees and "or$ers in their e0ercise of the
ight to self-organization. =ch right shall inclde the right to form,oin, or assist la!or organizations for the prpose of collective
argaining throgh representatives of their o"n choosing and to
ngage in la"fl concerted activities for the same prpose or for their
mtal aid and protection, s!#ect to the provisions of Article 24 ofhis Code. %As amended !y &atas 'am!ansa &ilang (), *ay 1, 1+).
. CONCEPT OF THE RIGHT TO SELF ORGANIZATION
/his is a $ey article that offers an inclsionary definition of the right
o self-organization %=.6. !y saying not "hat it is !t "hat it
ncldes. t incldes at least t"o rightsD %1 the right to form, #oin or
ssist la!or organizations, and %2 the right to engage in la"fl
oncerted activities. /he 8la!or organization9 may !e a nion orssociation of employees, as mentioned in Article 212%g. ts prposes
may !e collective !argaining %as stated in this Article or dealing "ith
he employer Nas stated in Article 212%gO.
/he right to form la!or organization is t"in to the right to engage in
oncerted activities.
t is "orth noting, finally, that the right to self-organization is grantedot only to employees !t to 8"or$ers,9 "hether employed or not. n
act, constittionally spea$ing, the right to form associations or
ocieties is a right of the 8people,9 "hether "or$ers or not.
Fo 8person97inside or otside of government, employer or
employer, nionist or non-nionist7may a!ridge these right
a!ridged in the "or$place, the a!ridgment is termed @' %
la!or practice.
Article 24, is !oth %in mi0ed metaphors, the conceptal motherthe formida!le fortress of the prohi!ition e0ponded in the ne0t
articles.
Title VI
UNFAIR LABOR PRACTICES
C-/te0 I
CONCEPT
Article 24(. Concept of nfair la!or practice and procedre
prosection thereof. nfair la!or practices violate the constitt
right of "or$ers and employees to self-organization, are inimic
the legitimate interests of !oth la!or and management, inclding
right to !argain collectively and other"ise deal "ith each other
atmosphere of freedom and mtal respect, disrpt indstrial p
and hinder the promotion of healthy and sta!le la!or-managerelations.
Conse
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mployees, first of all, mst organize themselves. &ecase self-
rganization is a prere
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he recognized collective !argaining agent may !e assessed a
easona!le fee e
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management prerogative may !e availed of "ithot fear of any
ia!ility so long as it is e0ercised in good faith for the advancement of
he employers> interest and not for the prpose of defeating or
ircmventing the rights of employees nder special la"s or valid
greement and are not e0ercised in a malicios, harsh, oppressive,
indictive or "anton manner or ot of malice or spite.
.4 Iorced Lacation @eave
Ehere the vacation leave "ithot pay, "hich the employer res action, theailre of the employer to ascri!e a valid reason therefor may #stify annference that his ne0plained condct in respect of the particlar employee
r employees "as inspired !y the latter>s nion mem!ership or activities.
Ehile the presence of this mere sspicion neither ta$es the place of evidencehat the employer>s condct "as improperly motivated nor dispenses "ith the
e
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Ehen an employer engages in srveillance or ta$es steps leading his
mployees to !elieve it is going on, a violation reslts !ecase the
mployees come nder threat of economic coercion or retaliation for
heir nion activities. nla"fl srveillance "as properly fond
"here spervisors "ere present near the place "here nion meeting"as !eing held to chec$ the names of employees leaving the meeting.
. conomic ndcements
A violation reslts from an employers annoncement of !enefits prior
o a representation election, "here it is intended to indce the
mployees to vote against the nion.
t is "ell-settled rle that "hile a representation election is pending,
he conferral of employee !enefits for the prpose of indcing the
mployees to vote against a nion is nla"fl.
.( mployers 0pression of 6pinion /otality of Condct Boctrine
/he doctrine holds that the clpa!ility of employers remar$s "as to
e evalated not only on the !asis of their implications, !t against the
ac$grond of and in con#nction "ith collateral circmstances.
1 Letter to indi#idual employees7t is an act of interference for themployer to send a letter to all employees notifying them to retrn to "or$ at
time specified therein, other"ise ne" employees "old !e engaged toerform their #o!s. ndividal solicitation of the employees or visiting their
omes, "ith the employer or his representative rging the employees to ceasenion activity or cease stri$ing, constittes nfair la!or practice. All the
!ove-detailed activities are nfair la!or practices !ecase they tend tondermine the concerted activity of the employees, an activity to "hich they
re entitled free from the employer>s molestation.
2 Stri(e%brea(ing7Ehen the respondent company offered reinstatementnd attempted to ?!ri!e? the stri$ers "ith ?comforta!le cots,? ?free coffee andccasional movies,? ?overtime? pay for ?"or$ performed in e0cess of eight
ors,? and ?arrangements? for their families, so they "old a!andon thetri$e and retrn to "or$, they "ere gilty of stri$e-!rea$ing andor nion-sting and, conse
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hen, the closre may !e declared a 8s!terfge9 and the doctrine of
ccessor employer "ill !e applied, that is, the ne" company "ill !e
reated as a contination or sccessor of the one that closed. f sch !e
he case, the separated employees "ill have to !e employed in the
ne"9 firm !ecase in the first place they shold not have !een
eparated at all.
/he 8sccessor employer9 rling is an enforcement of the legal
ecorse called 8piercing the veil of corporate entity.9
nder the doctrine of piercing the veil of corporate entity, "hen valid grondsherefore e0ist, the legal fiction that a corporation is an entity "ith a #ridical
ersonality separate and distinct from its mem!ers or stoc$holders may !eisregarded. n sch cases, the corporation "ill !e considered as a meressociation of persons. /he mem!ers or stoc$holders of the corporation "ille considered as the corporation, that is, lia!ility "ill attach directly to the
fficers and stoc$holders. /he doctrine applies "hen the corporate fiction issed to defeat p!lic convenience, #stify "rong, protect frad, or defendrime, or "hen it is made as a shield to confse the legitimate isses or "herecorporation is the mere alter ego or !siness condit of a person, or "here
he corporation is so organized and controlled and its affairs are so condcteds to ma$e it merely an instrmentality, agency, condit or ad#nct of another
orporation.
. SECOND U.L.P." ?YELLOW DOG@ CONDITION ;ART.
,
Contract provisions "here!y an employee agrees that dring the
eriod of his employment he "ill not !ecome a mem!er of a la!or
nion have !een otla"ed in the nited =tates, !y legislation in some
tates, as "ell as !y Iederal legislation.
/he 8yello" dog9 contract is a promise e0acted from "or$ers as a
ondition of employment that they are not to !elong to, or attempt to
oster, a nion dring their period of employment.
An American scheme, the typical yello" dog contract is an at-"ill
mployment agreement "hich contains, in addition to the salrovisions for employment, the follo"ing three provisionsD %1 a
epresentation !y the employee that he is not a mem!er of a la!ornion %2 a promise !y the employee not to #oin a la!or nion %3 a
romise !y the employee that, pon #oining a la!or nion, he "ill
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A la!or nion is company-dominated "here it appears that $ey officials of theompany have !een forcing employees !elonging to a rival la!or nion to #oin
he former nder pain of dismissal shold they refse to do so that heyfficials of the company, as "ell as its legal consel, have attended thelection of officers of the former nion that officers and mem!ers of the rivalnion "ere dismissed allegedly prsant to a retrenchment policy of the
ompany, after they had presented demands for the improvement of the"or$ing conditions despite its alleged retrenchment policy and that, after
ismissal of the aforesaid officers of the rival la!or nion, the companyngages the services of ne" la!orers.
. FIFTH U.L.P." DISCRIMINATION ;ART. 2,
Ehat the la" prohi!its is discrimination to encorage or discorage
mem!ership in a la!or organization. Ehere the prpose is to inflence
he nion activity of employees, the discrimination is nla"fl. &t
iscrimination is not the same as differentiation or classification. Ior
nstance, it is common management practice to classify #o!s and granthem varying levels of pay !enefits pac$age. /hese are valid
ifferentiations that recognize differences in #o! res pand property. Be process of la" demands nothing less.
+.4 Biscrimination in 5eglarization
+.: Biscrimination !y &lac$listing
A !lac$list has !een defined as 8a list of persons mar$ed o
special avoidance, antagonism or enmity on the part of those
prepare the list, or those among "hom it is intended to circlat
"here a trade nion P!lac$lists "or$men "ho refse to conform
rles, or "here a list of insolvent or ntrst"orthy person
p!lished !y a commercial agency or mercantile association.9
Ehen it is resorted to !y a com!ination of employers to pre
employment of employees for nion activities, it may constitte la!or practice. Aside from constitting an nfair la!or practice, it
give rise to a right of action for damages !y the employees pre#
nder Article 2 of the ne" Civil Code.
n its !road sense, ho"ever that is, in the sense of the employers circlalist of former employees of notorios laziness or negligence in
performance of their dties or of incorrigi!le propensity to create tro!the place of employment, it may !e a proper measre for the protecti
employers. /hs, it has !een held that nless the action of the employcom!ining or in passing commnications among themselves for the p
of e0clding n"anted "or$ers from employment, constittes a li!slander %and according to some decisions the defamation, to !e action
mst !e malicios, the e0clded employee possesses no right of a
!ecase the employers commnity of interest acts !oth to #stifycom!ination and to privilege the commnication.
+. ndirect Biscrimination
t is a "ell settled rle of la" that "hat is prohi!ited to !e
directly shall not !e allo"ed to !e accomplished indirectly.
/hs, the follo"ing acts have !een held nfair la!or practicesD %1
dismissal of a la!orer in accont of nion activities of his !rother
the discharge of an employee de to the nion activities of the "
and %3 the discharge of a "ife de to the nion activities o
hs!and.
+.( /est of Biscrimination
Ior the prpose of determining "hether or not a discharg
discriminatory, it is necessary that the nderlying reason for
discharge !e esta!lished. /he fact that a la"fl case for dischar
availa!le is not a defense "here the employee is actally discha
!ecase of his nion activities. f the discharge is actally motiv
!y a la"fl reason, the fact that the employee is engaged in
activities at the time "ill not lie against the employer and preventfrom the e0ercise of his !siness #dgment to discharge an empl
for case.
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Ehere circmstances esta!lish a discriminatory motive on the part of
he employer, the assignment of a #st case "ill !e navailing. f it
an !e esta!lished that the tre and !asic inspiration for the
mployers act is derived from the employees nion affiliations or
ctivities, the assignment !y the employer of another reason, "hatever
ts sem!lance of validity, is navailing.
An interference that the discharge of an employee "as motivated !y
is nion activity mst !e !ased pon evidence, direct or
ircmstantial, not pon mere sspicion.
. Constrctive Bischarge
Ehere the employer prohi!its employees from e0ercising their rightsnder the Act, on pain of discharge, and the employee
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. 'revents non-nion "or$ers from sharing in the !enefits of the
nions activities "ithot also sharing its o!ligations.
. 'revents the "ea$ening of la!or organizations !y discrimination
gainst nion mem!ers.
. liminates the lo"ering of standards cased !y competition "ith
on-nion "or$ers.
. na!les la!or organizations effectively to enforce collective
greements.
Iacilitates the collection of des and the enforcement of nion rles.
. Creates harmonios relations !et"een the employer and employee.
&t it is disadvantageos as it7
. 5eslts in monopolistic domination of employment !y la!or
rganizations.
. nterferes "ith the freedom of contract and personal li!erty of thendividal "or$er.
. Compels employers to discharge all non-nion "or$ers regardless
f efficiency, length of service, etc.
. Iacilitates the se of la!or organizations !y nscrplos nion
eaders for the prpose of e0tortion, restraint of trade, etc.
. Benies to non-nion "or$ers es acceptance of !enefits reslting from a colle
!argaining agreement #stifies the dedction of agency fees from
pay and the nion>s entitlement thereto. n this aspect, the legal
of the nion>s right to agency fees is neither contractal nor stat
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t s dismissal 7 on top of the privateespondent>s scheme of indcing his employees to sign an affidavit a!solving
im from possi!le violations of the @a!or Code 7 taints "ith evident !adaith and deli!erate malice petitioner>s smmary termination frommployment. /he pivotal s right to institte concerted action for !etter terms and conditionsf employment. Eithot do!t, the act of compelling employees to sign annstrment indicating that the employer o!served la!or standards provisions
f la" "hen he might have not, together "ith the act of terminating oroercing those "ho refse to cooperate "ith the employer>s schemeonstittes nfair la!or practice. /he first act clearly preempts the right of theotel>s "or$ers to see$ !etter terms and conditions of employment throgh
oncerted action.
).2 @a!or =tandards Liolation *ay @ead to a =ri$e
Art. 11.Retaliatory measures. t shall !e nla"fl for an employer to
efse to pay or redce the "ages and !enefits, discharge or in any
manner discriminate against any employee "ho has filed any
omplaint or institted any proceeding nder this /itle or has testifiedr is a!ot to testify in sch proceedings.
And yet, Articles 11 and 24 are related. /hey !oth spea$ of
mployees filing a complaint or giving testimony. &t the s!#ect of
omplaint or testimony nder Article 11 is limited to matters a!ot
"ages, the s!#ect of /itle of &oo$ . nder Article 24, on the
ther hand, the s!#ect testified to is any isse covered !y the Code.
&oth articles li$e"ise spea$ of retaliation !y the employer. 5etaliation
is "rong, and more than that, Article 24 considers it an nfair l
practice "hich, nder Art. 23, is a legal reason for employees to
a stri$e.
11. SEVENTH U.L.P." VIOLATION OF THE DUTY
BARGAIN ;ART. 2,
/he seventh @' act nder Art. 24 refers to violating the d
!argain. See 'rticles 010 and 012
12. EIGHT U.L.P." PAID NEGOTIATION ;ART. 2,
=elf-organization and collective !argaining are treasred righ
"or$ers. /he la" zealosly shields them from corrption. tpnisha!le act of @' for the employer to pay the nion or any
officers or agents any negotiation fee or attorneys fee as pa
settlement in collective !argaining or any la!or dispte. /o do
not nla"fl. t is ethically reprehensi!le.
13. NINTH U.L.P." VIOLATION OF THE CBA ;ART. 2,
After a C&A is conclded, its implementation foll
mplementation is still part of the !argaining process "hich, it sh!e recalled, rests on the parties 8dty to !argain.9 /he dt!argain, it shold also !e recalled, re
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o the sal cease and desistorders, isse an affirmative order to
ompel the respondent to 8!argain9 "ith the !argaining agent.
4.4 Bisesta!lishment
Ehere the employer had initiated, dominated or assisted in ornterfered "ith the formation or esta!lishment of any la!or
rganization or contri!ted financial or other spport to it, the Cort
may isse, in addition to a cease and desist order, an order directing
he employer to "ithdra" all recognition from the dominated la!ornion and to disesta!lish the same.
$. U.L.P. NOT SUB&ECT TO COMPROMISE
nfair la!or practice cases are not, in vie" of the p!lic interest
nvolved, s!#ect to compromises. /he relation !et"een capital and
a!or are not merely contractal. /hey are so impressed "ith the
!lic interest that la!or contracts mst yield to the common good.
%. U.L.P. IN A GIVEN PERIOD SHOULD BE INCLUDED IN
INGLE CHARGE
Ehen a la!or nion accses an employer of acts of nfair la!orractice allegedly committed dring a given period of time, theharges shold inclde all acts of nfair la!or practice committed
gainst any and all mem!ers of the nion dring that period. /he
nion shold not, pon the dismissal of the charges first preferred, !e
llo"ed to split its case of action and harass the employer "ith
!se
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mem!ers over permit holders, for mem!ers of the nion e0ective
oard over more senior employees, for mem!ers of one nion over
mem!ers of another nion, or for mem!ers of one local over mem!ers
f another local.
/he for!idden discrimination may refer to terms of hiring or firing, inayoff, in seniority, or in !enefits.
.1 Ar!itrary se of nion =ecrity Clase
/he !road rle is that the nion has the right to determine its
mem!ership and to prescri!e the conditions for the ac
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3 negotiation of any
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. &URISDICTIONAL PRECONDITIONS OF COLLECTIVE
BARGAINING
Ehile it is a mtal o!ligation of the parties to !argain, the employer,
o"ever, is not nder any legal dty to initiate contract negotiation./he mechanics of collective !argaining is set in motion only "hen the
ollo"ing #risdictional preconditions are present, namelyD
1 possession of the stats of ma#ority representation of the
mployees> representative in accordance "ith any of the means ofelection or designation provided for !y the @a!or Code
2 proof of ma#ority representation and
3 a demand to !argain nder Article 2:1, par. %a of the Fe" @a!or
Code.
An employers dty to recognize and !argain collectively "ith a nion
s the collective !argaining representative of his employees does not
rise ntil after the nion res right is ho"ever to
easona!le proof.
.1 &argaining "ith *inority nion, @'
Ehere a ma#ority representative has !een designated, it is an nfair
a!or practice, Nfor the employerO as a refsal of collective !argaining,
o deal and negotiate "ith the minority representative.
6n the nion side, "here there e0ists a legitimate isse as to "hich of
everal nions is the legitimate representative of employees, it is @'
or one of the nions to stage a stri$e and demand that the employer
it do"n "ith it for collective !argaining.
. WHEN BARGAINING SHOULD BEGIN
f the three #risdictional preconditions are present, the collective
argaining shold !egin "ithin the 12 months follo"ing theetermination and certification of the employees e0clsive !argaining
epresentative. /his period is $no"n as the 8certification year.9
/he employers dty to !argain dring the certification year has !een
eld to e0tend throghot the entire year. A!sent nsal
ircmstances, an employer commits an nfair la!or practice !y
efsing to !argain "ith the nion dring its certification year,
ot"ithstanding the repdiation of the nion !y a ma#ority of its
mployees !efore the e0piration of the one-year period. /he rle is theame "hether the nion lost its ma#ority as a reslt of the employers
nfair la!or practices or throgh no falt of the employer.
A nion "hich has !een certified !y the F@5& as a !arga
representative for a particlar nit en#oys an irrefta!le presmp
of a ma#ority stats for one year, a!sent special circmsta
Iollo"ing the e0piration of the one-year certification period, t
contines to !e a presmption in favor of a nion ma#ority, thog
presmption is re!tta!le. mployee trnover does not cons8nsal circmstances9 shortening the period.
%. SINGLE ENTERPRISE BARGAINING PROCED
BROADLY DESCRIBED
/he la" gives primacy to free collective !argaining %Art. 211
allo"s the parties to devise their !argaining rles %Art. 2:1. /h
the !asic reason the !argaining procedre is governed primarilagreement of the parties.
n the presence of validly agreed procedre, the @a!or C
procedre applies sppletorily only.
B.6. Fo. 4)-)3 spplements the codal provisionsD
=ection 3. Ehen single enterprise !argaining availa!le. - Any voln
recognized or certified la!or nion may demand negotiations "itemployer for terms and conditions of "or$ covering employees i!argaining nit concerned.
=ection 4. 'rocedre in single enterprise !argaining - A recognizecertified la!or nion that desires to negotiate "ith its employer shall ssch intention in "riting to the employer, together "ith its proposacollective !argaining.
/he recognized or certified la!or nion and its employer may a
sch procedres and processes they may deem appropriate
necessary for the early termination of their negotiations. /hey
name their respective representatives to the negotiation, schedl
nm!er and fre
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/he mlti-employer nit is particlarly advantageos to !oth sides in
ndstries composed of many small, financially "ea$ employers.
*lti-employer !argaining provides !oth management and nions
"ith significant cost savings in negotiation of la!or agreements. t is
heaper to negotiate one master mlti-employer agreement than am!er of single-employer agreements.
/here are, ho"ever, other considerations than costs, sch as intra-
rganizational isses, that the parties ta$e into accont !efore optingor mlti-employer nits. *lti-employer !argaining may not only
verloo$ the needs of varios employee grops, !t also ignore
articlar re
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either party shall terminate nor modify sch agreement dring its
ifetime. ;o"ever, either party can serve a "ritten notice to terminate
r modify the agreement at least si0ty %) days prior to its e0piration
ate. t shall !e the dty of !oth parties to $eep the stats
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An employer has !een held not gilty of a refsal to !argain !y
damantly re6ecting the nions economic demands "here he is
perating at a loss, on a lo" profit margin, or in a depressed indstry,
s long as he continues to negotiate.
. Acts not Beemed 5efsal to &argain
/he dty to !argain is not violated !yD
1 adoption of an adamant !argaining position in good faith,
articlarly "hen the company is operating at a loss
2 refsal to !argain over demands for commission of nfair la!orractices
3 refsal to !argain dring period of illegal stri$e.
f a nion engages in an illegal stri$e, the employer has no o!ligation
o !argain ntil he is notified that the illegal stri$e has !een
erminated.
Ehere, prsant to an honest do!t, the employer has demandeddditional proof or ac
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@ay-offs
+ mployee "or$loads
1) Eor$ rles and reglations
11 5ent of company hoses
12 nion secrity arrangements.
.1a Eage Agreement 8=olomonic9 Approach
Ee ta$e note of the ?middle grond? approach employed !y the =ecretary inhis case "hich. "e do not necessarily find to !e the !est method of resolving
"age dispte. *erely finding the mid"ay point !et"een the demands of theompany and the nion, and ?splitting the difference? is a simplistic soltion
hat fails to recognize that the parties may already !e at the limits of the "ageevels they can afford. t may lead to the danger too that neither of the parties
"ill engage in principled !argaining the company may $eep its positionrtificially lo" "hile the nion presents an artificially high position, on the
ear that a ?=olomonic? soltion cannot !e avoided. /hs, rather thanncorage agreement, a ?middle grond approach? instead promotes a ?playafe? attitde that leads to more deadloc$s than to sccessflly negotiated
C&As.
.2 Eor$loads and Eor$ 5les
mployee "or$loads are a mandatory s!#ect of !argaining.
mployer rles concerning coffee !rea$s, lnch periods, smo$ing,
mployee discipline, and dress are also mandatory s!#ects of
argaining, as are plant safety rles and general reglations.
Company rles relating to safety and "or$ practices come "ithin the
meaning of the phrase 8other terms and conditions of employment9 assed in the Act and, therefore, constitte a mandatory s!#ect of
ollective !argaining.
.2a Code of Condct
Eor$ rles and reglations are commonly compiled into a !oo$let
sally called 8Code of Biscipline9 or 8Code of Condct.9 =ch dos
nd donts for employees of the enterprise are "or$ rles, formingart of terms and conditions of employment, that are proper s!#ects
f collective !argaining. ;ardly may the employer contend that they
re 8non-negotia!le9 matters.
.3 *anagement 'rerogatives Clase
An employer does not commit an nfair la!or practice !y insisting, to
he point of a !argaining impasse, on the inclsion in the contract of a
management prerogatives clase, even thogh some of the mattersovered !y the clase are 8conditions of employment9 "hich are
mandatory s!#ects of !argaining nder 2+ =C= =ec. 1:%d. /hs,
n employers insistence that its decisions regarding hiring and tenre
f employment shold not !e revie"a!le !y ar!itration is not a refsal
o !argain.
.4 nion Biscipline Clase
An employer may !argain to an impasse over his proposal that thenion eliminate a piece"or$ ceiling imposed !y a nion rle "hich
!#ects mem!ers to discipline for e0ceeding the prodction
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An employer !argains to an impasse over a non-mandatory !argaining
!#ect "hen he refses to reach any agreement "ith the nion nless
he nion capitlates to him on that s!#ect. ;o"ever, it has !een held
hat a !argaining impasse may !e reached over a non-mandatory
argaining s!#ect althogh that s!#ect is not the sole case for the
arties failre to agree. Ehen a s!#ect nder discssion is notmandatory, it may !e discssed if !oth parties agree, !t a stri$e or
oc$ot may not !e sed to compel a negotiation or agreement.
Ehile most matters that might !e discssed or proposed in collectiveargaining are li$ely to !ear some relation, even if tenos, to 8"age,
ors, and other terms and conditions of employment,9 not all
roposals that someho" respond to a pro!lem that is cstomarily
argained a!ot may themselves !e insisted pon to impasse. &y onceargaining and agreeing on a permissive s!#ect of !argaining, the
arties do not ma$e the s!#ect a mandatory topic of ftre
argaining.
.1) &argaining to the 'oint of mpasseD Fot necessarily &ad Iaith
/he adamant insistence on a !argaining position to the point "here
he negotiations reach an impasse does not esta!lish !ad faith. Feither
an !ad faith !e inferred from a partys insistence on the inclsion of aarticlar s!stantive provision nless it concerns trivial matters or is!viosly intolera!le.
/he
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/he dty to !argain collectively may !e violated "ithot a general
ailre of s!#ective good faith, and there is no occasion to consider
he isse of good faith if a party refses even to negotiate in fact a!ot
ny of the mandatory s!#ects. AF employer cannot !e gilty of a
efsal to !argain if the nion is not itself !argaining in good faith.
.1 Betermination of Good Iaith
/he crcial s refsal to ma$e conter-proposal to the
proposed C&A is an indication of its !ad faith.
4.3a &ad IaithD =rface &argaining =hifting &argaining 'osit
&le =$y &argaining
8=rface !argaining,9 "hich means a sophisticated pretense in
form of apparent !argaining, does not satisfy the stattory d
!argain. /he dty is not discharged !y merely meeting togeth
simply manifesting a "illingness to tal$. t re
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/he aim, in a "ord, "as to deal "ith the nion throgh the employees, ratherhan "ith the employees throgh the nion.
.4 Fot &ad Iaith to 'ropose *odifications to the 0piring C&A
t is not !ad-faith !argaining "hen a party proposes modifications to
he e0piring C&A. /he second sentence of Article 2:3 e0plicitly refers
o serving a "ritten notice 8to terminate or modify9 the agreement.
*odification may mean addition to, s!traction from, or other "ays
f changing the contents or phraseology of contents of the e0piringC&A. t does not connote a one-direction movement. &t "hichever
"ay it is proposed to go, the proposed changes re
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.2 ffect of =igning on 6ther Bisptes
. REGISTRATION OF C.B.A.
/he collective agreement, having !een properly ratified, shold !e
egistered "ith the B6@ 5egional 6ffice "here the !argaining nions registered or "here it principally operates. Art. 231 re
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ntered into "ithin si0 % months from e0piry of the old one, shall
etroact to the date follo"ing sch e0piry date ths, if the C&A
0pired on Becem!er 31 and the ne" one is conclded on, say, *arch
1, its effectivity date is Kanary 1. f, on the other hand, the ne"
greement is conclded after Kne 3), then the matter of retroaction
nd the possi!le retroactive date are left to the parties.
Ehen, precisely, is the date an agreement is 8conclded9 or 8entered
nto9J
/he determining point is the date the parties agreed, not the date they signed.Art. 2:3-A refers merely to an ?agreement? "hich, according to &lac$>s @a"
Bictionary is ?a coming together of minds the coming together in accord of"o minds on a given proposition.? /his is similar to Art. 13): of the Civil
Code>s definition of ?contract? as ?a meeting of minds !et"een t"o persons.?/he t"o terms, ?agreement? and ?contract,? are indeed similar, althogh the
ormer is !roader than the latter !ecase an agreement may not have all thelements of a contract. As in the case of contracts, ho"ever, agreements maye oral or "ritten. ;ence, even "ithot any "ritten evidence of the Collective
&argaining Agreement made !y the parties, a valid agreement e0isted in this
ase from the moment the minds of the parties met on all matters they set oto discss, as provided nder Art. 131: of the Civil Code.
.1 ffectivity of C&A Conclded After =i0 *onths from 0pirationf 6ld C&A
ignificantly, the la" does not specifically cover the sitation "here
i0 months have elapsed !t the parties have reached no agreement
"ith respect to effectivity. n this eventality, "e hold that any
rovision of la" shold then apply, for the la" a!hors a vacm.
6ne sch provision is the principle of hold over, i.e., that in the a!sence of a
e" C&A, the parties mst maintain thestatus /uoand mst contine in fllorce and effect the terms and conditions of the e0isting agreement ntil a ne"greement is reached. n this manner, the la" prevents the e0istence of a gapn the relationship !et"een the collective !argaining parties. Another legal
rinciple that shold apply is that in the a!sence of an agreement !et"een the
arties, then, an ar!itrated C&A ta$es on the natre of any #dicial or
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f the "or$ers in sch la!or-management concils shall !e elected !y
t least the ma#ority of all employees in said esta!lishment. %As
mended !y =ection 22, 5ep!lic Act Fo. (1:, *arch 21, 1++.
. WOR*ERS( PARTICIPATORY RIGHT" ITS
CONSTITUTIONAL MEANING
/he crcial
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At the enterprise level there are three democratic devices, stattorily
m!edded, to advance the case of indstrial peace, namelyD airing of
rievance even !y an individal employee directly to the employer
nytime participation in policy and decision-ma$ing !y employees,
"hether nionized or not and collective !argaining "ith the employery nionized employees.
/he collective !argaining that the la" envisions occrs !et"een the
mployer and the employees comprised in an 8appropriate9 collectiveargaining nit %C& represented !y a nion. As initially e0plained
n Art. 234, the 8C&9 is that grop of #o!s and #o!holders
epresented !y the recognized or certified nion "hen it !argains "ith
he employer. /he 8grop9 may comprise all the spervisors or,eparately, all the ran$-and-file poplation in the company. 6r it may
e less than all of these t"o categories, althogh the la" prefers to
ave only one groping per category in one enterprise !ecase the
more solid the nit, the stronger its !argaining capacity. &t if a single
nit %only one for all spervisors or only one for all ran$-and-file is
ot feasi!le, the la" allo"s s!grops as !argaining nits, provided
nly that each s!-grop is 8appropriate.9 t is appropriate if its
mem!ers share s!stantially common concerns and interests.
As defined in B.6. Fo. 4)-)3 "hich is no" the revised &oo$ L of the5les mplementing the @a!or Code, 8!argaining nit9 refers to a
rop of employees sharing mtal interests "ithin a given employer
nit, comprised of all or less than all of the entire !ody of employees
n the employer nit or any specific occpational or geographical
roping "ithin sch employer nit.
Eithin one nit there may !e one or more nions. /he !argaining nit
herefore is not the same as, and sally a !igger grop than, a nion.&t only one nion shold represent the "hole C& in !argaining
"ith the employer. /he chosen nion is called the !argaining agent, its
rincipal !eing the C& mem!ers themselves.
/he !argaining nion has to !e the ma#ority nion, the one "here
ma#ority of the C& mem!ers !elong.
5epresentative nion,9 8!argaining nion,9 8ma#ority nion,9!argaining agent,9 and 8!argaining representative9 are one and the
ame. t refers to the nion that represents the C& in !argaining orealing "ith the employer.
. APPROPRIATENESS OF BARGAINING UNIT' FACTORS
CONSIDERED
/he determination of "hat constittes a proper !argaining nit lies primarily
n the discretion of the &rea, since no individal factor is given !y la"
ecisive "eight. &t "hile the determination of the appropriate collectiveargaining nit %C& is a primary fnction of the &rea, it is s!#ect to theegal res accepta!ility is "hether or not its fndamentally the com!ination "hich "ill !est assre to all employees the
0ercise of their collective !argaining rights. ndstrial e0perience indicateshat the most efficacios !argaining nit is one "hich is comprised of
onstitents en#oying a commnity of interest. /his commnity of interest iseflected in grops having s!stantial similarity of "or$ and dties or
imilarity of compensation and "or$ing conditions.
n ma$ing #dgments a!ot 8commnity of interest9 in these different
ettings, the &oard "ill loo$ to sch factors asD %1 similarity in the
scale and manner of determining earnings %2 similarit
employment !enefits, hors of "or$ and other terms and conditio
employment %3 similarity in the $inds of "or$ performed
similarity in the
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he !argaining nit9 is the most appropriate procedre that conforms
"ith their right to form, assist or #oin a la!or nion or organization.
.1 Besire of the mployees /he Glo!e Boctrine
/he desires of the employees are relevant to the determination of theppropriate !argaining nit. /he relevancy of the "ishes of employees
oncerning their inclsion or e0clsion from a proposed !argaining
nit is inherent in the !asic right to self organization. Ehile the
esires of the employees "ith respect to their inclsion in a !argainingnit is not controlling, it is a factor "hich "old !e ta$en into
onsideration in reaching a decision.
. SINGLE OR ?EMPLOYER UNIT@ IS FAVORED
t has !een the policy of the &rea of @a!or 5elations to encorage
he formation of an employer nit nless circmstances other"ise
e
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nit. Ehen an election "hich provides for three or more choices
eslts in no choice receiving a ma#ority of the valid votes cast, a rn-
ff election shall !e condcted !et"een the la!or nions receiving the
"o highest nm!er of votesD 'rovided, /hat the total nm!er of votes
or all contending nions is at least fifty percent %:)S of the nm!er
f votes cast. n cases "here the petition "as filed !y a national nionr federation, it shall not !e re
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Ehere one casting of votes is not decisive enogh to elect a nion, the
lection officials may re choice of their !argaining representative. t
appropriate means "here!y controversies and disptes on representation
!e laid to rest, !y the ne
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f non-adversary and fact finding character. As sch, it is not !ond
y technical rles of evidence.
/he la" does not contemplate the holding of a certification election
nless the preliminary in
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Ehere t"o or more petitions involving the same !argaining nit are
iled in one 5egional 6ffice, the same shall !e atomatically
onsolidated "ith the *ed-Ar!iter "ho first ac
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nion selected "old !e decertified and the "hole election proceedings "olde rendered seless and ngatory.
F6F/;@==, a certification election cannot !e stayed dring theendency of nfair la!or practice charge against a nion filed !y the
mployer.
imilarly, certification election may !e ordered despite pendency of a
etition to cancel the nions registration certificate fonded on
lleged illegal stri$e !y the nion.
.! Grond 2D /he 12-month &ar %certification year !ar
Fo petition for a C may !e filed "ithin one year from the date of a
alid certification, consent, or rn-off election or from the date of
ntry of a volntary recognition of the nion !y the employer. /hs, if
n election had !een held !t not one of the nions "on a 'C may
e filed again !t only after 12 months. /he la" does not "ant more
han one election in a 12-month period. /he same !ar applies if 8Fo
nion9 "on in the previos election.
6n the other hand, if a nion has "on, sch nion and the employer
mst "ithin 12 months start negotiating a collective agreement. fhey fail to do so, they are defeating the employees "ish to have a
C&A hence, the nion or nions that lost can petition again for a
ertification election after 12 months from the last election so as to
eplace the nprodctive !argaining agent "hich, perhaps, is
avorting "ith the employer.
6rdinarily, a !argaining agent "ho failed to secre a C&A "ithin 12 months
old !e sspected as a tool of management and shold deserve to !eeplaced. &t if circmstances sho" that the case of not having conclded a
C&A "as not the nions falt, sch nion shold not !e !lamed, and a Chold not !e athorized even thogh no C&A has !een conclded despiteassage of t"elve months. /he sitation ta$es the natre of a 8deadloc$ !ar.9
/he 12-month prohi!ition prespposes that there "as an actal condct oflection i.e. !allots "ere cast and there "as a conting of votes. n this case,here "as no certification election condcted precisely !ecase the firstetition "as dismissed, on the grond of a defective petition "hich did not
nclde all the employees "ho shold !e properly inclded in the collectiveargaining nit, the certification year !ar does not apply.
Feither does this !ar apply if in fact there "as a failure of election
ecase less than ma#ority of the C& mem!ers voted. n that case,
nother 'C may !e filed "ithin si0 % months.
An election held less than a year after an invalid election is not !arred.
Also not !arred "old !e a second election held among a grop of
mployees "ho had not participated in the first election and had not
een given the opportnity to !e represented as part of the nit in theirst election.
A radical change in the size of a !argaining nit "ithin a short period
f time, raising a
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asy for another nion to replace the incm!ent. /rying to so "ill
istr! the peace in the enterprise. /o #stify the distr!ance, it mst
ppear that a sizea!le portion of the employees7at least 2:S7
esires to have a ne" nion. Eithot this minimm spport the
hallenge to the incm!ent loo$s li$e a nisance.
)he BU9 7ot the !nterprise
f a companys ran$-and-file employees are nionized !t the
pervisors are not, does the spervisors petition need the 2:Sminimm spportJ
F6, !ecase the company is considered norganized. /he petition for
C involves only the spervisors, not the ran$-and-file. nsofar as thepervisors are concerned, the 8esta!lishment9 is considered
nnionized. ;ence the re
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ontract%Bar Rule 'pplied8 Unpro#ed Surreptitious Registration of
B'
ven if the e0isting C&A is registered srreptitiosly, as alleged !y
he petitioner nion, !t no evidence is presented proving the alleged
rreptitios registration, the petition for C cannot !e granted. /heontract-!ar rle applies. Ehether or not the C&A "as indeed
rreptitiosly registered is a factal matter "hose determination is
tside the am!it of a petition for certiorari.
ontract%Bar Rule 7ot 'pplied8
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hold determine the legality of the employees> mem!ership in the
nion.
.1) Action on the 'etitionD s the mployer a &ystanderJ See Art.
:-A
.1)a mployer a &ystander Cannot 6ppose 'C
.11 Action on the 'etitionD Approval
ection 13. 6rderBecision on the petition. - Eithin ten %1) days from theate of the last hearing, the *ed-Ar!iter shall isse a formal order granting
he petition or a decision denying the same. n organized esta!lishments,o"ever, no order or decision shall !e issed !y the *ed-Ar!iter dring thereedom period.
/he order granting the condct of a certification election shall state theollo"ingD
a the name of the employer or esta!lishment
! the description of the !argaining nit
c a statement that none of the gronds for dismissal enmerated in the
cceeding paragraph e0ists
d the names of contending la!or nions "hich shall appear as follo"sDetitioner nions in the order in "hich their petitions "ere filed, forcedntervenor, and no nion and
e a directive pon the employer and the contending nion%s to s!mit"ithin ten %1) days from receipt of the order, the certified list of employeesn the !argaining nit, or "here necessary, the payrolls covering the mem!ersf the !argaining nit for the last three %3 months prior to the issance of the
rder
.12 Appeal of 6rder Granting or Benying 'etition
ection 1(. Appeal. - /he order granting the condct of a certification electionn an norganized esta!lishment shall not !e s!#ect to appeal. Any isse
rising therefrom may !e raised !y means of protest on the condct andeslts of the certification election.
/he order granting the condct of a certification election in an organized
sta!lishment and the decision dismissing or denying the petition, "hether inn organized or norganized esta!lishment, may !e appealed to the 6ffice of
he =ecretary "ithin ten %1) days from receipt thereof.
/he appeal shall !e verified nder oath and shall consist of a memorandm ofppeal, specifically stating the gronds relied pon !y the appellant "ith the
pporting argments and evidence.
n short, denial of any petition for C is al"ays appeala!le, !t never
ppeala!le is the approval of any 'C in an enterprise stillnnionized. /he reason is sond and simpleD the la" "ants to
nionized the nnionized.
ection 1. Ehere to file appeal. - /he memorandm of appeal shall !e filedn the 5egional 6ffice "here the petition originated, copy frnished theontending nions and the employer, as the case may !e. Eithin t"enty-for
24 hors from receipt of the appeal, the 5egional Birector shall case theransmittal thereof together "ith the entire records of the case to the 6ffice ofhe =ecretary.
ection 1+. Iinality of 6rderBecision. - Ehere no appeal is filed "ithin theen-day period, the *ed-Ar!iter shall enter the finality of the orderdecision inhe records of the case and case the transmittal of the records of the petition
o the 5egional Birector.
=ection 2). 'eriod to 5eply. - A reply to the appeal may !e filed !y any
to the petition "ithin ten %1) days from receipt of the memorandappeal. /he reply shall !e filed directly "ith the 6ffice of the =ecretary.
=ection 21. Becision of the =ecretary. - /he =ecretary shall have fifteen
days from receipt of the entire records of the petition "ithin "hich to dthe appeal. /he filing of the memorandm of appeal from the orddecision of the *ed-Ar!iter stays the holding of any certification election
/he decision of the =ecretary shall !ecome final and e0ectory after tendays from receipt thereof !y the parties. Fo motion for reconsideration decision shall !e entertained.
=ection 22. /ransmittal of records to the 5egional 6ffice. - Eithin forty-%4 hors from notice of receipt of decision !y the parties and finality odecision, the entire records of the case shall !e remanded to the 5eg6ffice of origin for implementation. mplementation of the decision sha
!e stayed nless restrained !y the appropriate cort.
*ay a certification election !e held legally pon petition of ni
"hile a petition for C !y nion A is pending on appeal at the 6
of the =ecretaryJ Fo, the appeal shold first !e resolved.
3.13 Condcting the C
3.13a 're-election Conference
=ection 1. 5affle of the case. - Eithin t"enty-for %24 hors from recethe notice of entry of final #dgment granting the condct of a certific
election, the 5egional Birector shall case the raffle of the case to an le6fficer "ho shall have control of the pre-election conference and ele
proceedings.
=ection 2. 're-election conference. - Eithin t"enty-for %24 hors receipt of the assignment for the condct of a certification election
lection 6fficer shall case the issance of notice of preelection confepon the contending nions and the employer, "hich shall !e sche
"ithin ten %1) days from receipt of the assignment.
/he pre-election conference shall set the mechanics for the election anddetermine, among others, the follo"ingD%a date, time and place of the election, "hich shall not !e later than forty%4: days from the date of the first pre-election conference, and shall !e
reglar "or$ing day and "ithin the employer>s premises, nless circmstre
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n the mintes, inclding the reason for refsal to sign the same. n all cases,he parties shall !e frnished a copy of the mintes.
/he pre-election conference shall !e completed "ithin thirty %3) days fromhe date of the first hearing.
ection . 'osting of Fotices. - /he lection 6fficer shall case the posting ofotice of election at least ten %1) days !efore the actal date of the election in"o %2 most conspicos places in the company premises. /he notice shallontainD
a the date and time of the election
! names of all contending nions
c the description of the !argaining nit and the list of eligi!le and challengedoters.
/he posting of the notice of election, the information re !enefit in the !argaining n
pon the plea that they, the minority "or$ers, are !eing denied the rigself-organization and collective !argaining.
/he respondents> argment that the petitioners are dis
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pecios. Feither la", administrative rle nor #risprdence re
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0clsive !argaining agent of all the employees in the appropriate !argainingnit "ithin five %: days from the day of the election, provided no protest is
ecorded in the mintes of the election.
,13f Iailre of lectionD *otion for a 5emedial lection
ection 1(. Iailre of election. - Ehere the nm!er of votes cast in aertification or consent election is less than the ma#ority of the nm!er of
ligi!le voters and there are no material challenged votes, the lection 6fficerhall declare a failre of election in the mintes of the election proceedings.
ection 1. ffect of failre of election. - A failre of election shall not !ar the
iling of a motion for the immediate holding of another certification oronsent election "ithin si0 % months from date of declaration of failre oflection.
ection 1+. Action on the motion. - Eithin t"enty-for %24 hors fromeceipt of the motion, the lection 6fficer shall immediately schedle the
ondct of another certification or consent election "ithin fifteen %1: daysrom receipt of the motion and case the posting of the notice of certification
lection at least ten %1) days prior to the schedled date of election in t"o %2most conspicos places in the esta!lishment. /he same gidelines and list of
oters shall !e sed in the election.
.13g 5n-off lection
ection 1. Ehen proper. - Ehen an election "hich provides for three %3 ormore choices reslts in none of the contending nions receiving a ma#ority of
he valid votes cast, and there are no o!#ections or challenges "hich ifstained can materially alter the reslts, the lection 6fficer shall moturopio condct a rn-off election "ithin ten %1) days from the close of thelection proceedings !et"een the la!or nions receiving the t"o highest
m!er of votes provided, that the total nm!er of votes for all contendingnions is at least fifty %:)S percent of the nm!er of votes cast.
Fo nion? shall not !e a choice in the rn-off election.
Fotice of rn-off elections shall !e posted !y the lection 6fficer at least five
: days !efore the actal date of rn-off election.
ection 2. Ralification of voters. - /he same voters> list sed in theertification election shall !e sed in the rn-off election. /he !allots in the
n-off election shall provide as choices the nions receiving the highest andecond highest nm!er of the votes cast. /he la!or nion receiving the greaterm!er of valid votes cast shall !e certified as the "inner, s!#ect to =ection), 5le H.
/o smmarize, a rn-off election is proper if five concrrentonditions e0ist, namelyD
. a valid election too$ place !ecase ma#ority of the C& mem!ers
oted.
. the election presented a least three choices, e$g$, nion 6ne, nion
/"o, and Fo nion, meaning there are at least t"o nioncandidates.9
. not one of the nions o!tained the ma#ority ofthe valid votes.
. the total nm!er of votes for all the nions is at least :)S of the
alid votes cast.
. there is no nresolved challenge of voter or election protest.
.14 Appeal to =ecretary as to lection 5eslt7See B.6. Fo. 4)--)3dated 3) Fovem!er 2)):
.1: lection rreglarities, 'rotest !y mployer
/he manner in "hich the election "as held cold ma$e the diffe
!et"een indstrial strife and indstrial harmony in the company. Ehemployer is prohi!ited from doing is to interfere "ith the condct o
certification election for the prpose of inflencing its otcome. &t ceran employer has an a!iding interest in seeing to it that the election is c
peacefl, orderly and credi!le.
. THIRD METHOD" CONSENT ELECTION
@i$e a C, its prpose is the same, namely, to find ot "hich
shold serve as the !argaining agent. /he difference is th
certification is ordered !y the Bepartment "hile a consent electi
volntarily agreed pon !y the parties, "ith or "ithot
intervention of the Bepartment.
/"o or more nions are involved in a consent election. And
certification election, consent election may ta$e place in
norganized or organized esta!lishment.
4.1 ffect of Consent lection
=ection 23. ffects of consent election. - Ehere a petition for certific
election had !een filed, and pon the intercession of the *ed-Ar!iteparties agree to hold a consent election, the reslts thereof shall constit!ar to the holding of a certification election for one %1 year from the ho
of sch consent election. Ehere an appeal has !een filed from the resthe consent election, the rnning of the one-year period shall !e sspntil the decision on appeal has !ecome final and e0ectory.
Ehere no petition for certification election "as filed !t the pthemselves agreed to hold a consent election "ith the intercession o5egional 6ffice, the reslts thereof shall constitte a !ar to another pefor certification election.
$. THE WINNER AS SOLE AND E!CLUS
REPRESENTATIVE
Collective !argaining contemplates the representation of the colle
!argaining interests of all the employees in the particlar !arga
nit !y a properly selected !argaining agent. /he selection
!argaining agent !y a ma#ority of sch employees, nder e0provisions of the Act, constittes the agent as the representative o
the employees "ithin the particlar !argaining nit. /he Act prov
that sch !argaining agent shall !e the 8e0clsive9 representativ
the employees. /he term 8e0clsive9 "as interpreted nder
original Act to mean that the employer mst treat "ith
representative to the e0clsion of all other claiming !argaining ag
:.1 0clsive &argaining Agent 5epresents ven the *inority n
6n the part of the nion that "on in the certification election, it !ecome
is certified as, the e0clsive !argaining agent of all the "or$ers i!argaining nit. t represents even the mem!ers of the minority nion.
;o"ever, althogh the nion has every right to represent its mem!ers negotiation regarding the terms and conditions of their employment, it cnegate their "ishes on matters "hich are prely personal and individ
them.
:.2 'rotection and Capacity of the @oser the Bty of
5epresentation
Ehat if the ma#ority nion neglects the interest of the employe
the minority nionJ /he ma#ority nion in sch case "ill !e viol
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ts dty of fair representation. /his dty o!ligates the ma#ority nion
o serve the interest of all mem!ers of the "hole !argaining nit
"ithot hostility or discrimination.
Ehat can the minority doJ /he minority nion, althogh a loser in the
lection, does not lose its character as a la"fl la!or organizationntitled to protection nder Article 24 "hich ma$es it nla"fl for
ny person to a!ridge the right to self-organization. %see alsoArticle
::
*ay a minority nion charge the employer "ith @'J Qes. t can file
n individal or grop complaint for @'. t can even engage in
eacefl concerted activity. &t it cannot resort to "or$ stoppage or
tri$e !ecase stri$e is reserved, nder Article 23, to an e0clsiveargaining representative %i$e$, the ma#ority nion, if there is one.
.3 s the &argaining nion a *a#ority nionJ
/he minority nions entitlement to protection gains greater force and
espect if it is remem!ered that the !argaining nion does not al"ays
omprise the nmerical ma#ority in the !argaining nit.
Article 2: re
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onstred in favor of the safety and decent living for the la!orer. /his is alson consonance "ith the principle ennciated in the @a!or Code that all do!ts
hold !e resolved in favor of the "or$er.
&t contracts "hich are not am!igos are to !e interpreted according to theiriteral meaning and shold not !e interpreted !eyond their o!vios
ntendment.
Compliance "ith a C&A is mandated !y the e0pressed policy to giverotection to la!or. n the same vein, C&A provisions shold !e ?constred
!erally rather than narro"ly and technically, and the corts mst place aractical and realistic constrction pon it, giving de consideration to theonte0t in "hich it is negotiated and prpose "hich it is intended to serve.?
/his is fonded on the dictm that a C&A is not an ordinary contract !t one
mpressed "ith p!lic interest. t goes "ithot saying, ho"ever, that onlyrovisions em!odied in the C&A shold !e so interpreted and complied "ith.
.2 'roposal Contained in *intes !t Fot in the C&A tself
A proposal mentioned in the negotiation !t not em!odied in theollective !argaining contract itself is not part of the C&A. t cannot
erve as !asis of a charge of violating the C&A or of !argaining in !ad
aith.
.3 8Tipper Clase9
A device to forestall negotiation proposals after the C&A has !een
igned is the 8zipper clase.9 t is a stiplation in a C&A indicatinghat isses that cold have !een negotiated !t not contained in the
C&A cannot !e raised for negotiation "hen the C&A is already in
ffect. n short, the C&A is a complete agreement negotiation is
losed, as a zipper does.
. LAW DEEMED WRITTEN IN CONTRACT
/he principle is ths "ell-settled that an e0isting la" enters into andorms part of a valid contract "ithot the need for the parties
0pressly ma$ing reference to it. 6nly ths cold its validity insofars some of its provisions are concerned !e assred.
. BINDING EFFECT OF AGREEMENT
A collective !argaining agreement entered into !y officers of a nion, as agentf the mem!ers, and an employer, gives rise to valid enforcea!le contractal
elations, against the individal nion mem!ers in matters that affect themecliarly, and against the nion in matters that affect the entire mem!ership
r large classes of its mem!ers,? and ?a nion mem!er "ho is employednder an agreement !et"een the nion and his employer is !ond !y the
rovisions thereof, since it is a #oint and several contract of the mem!ers ofhe nion entered into !y the nion as their agent.?
.1 'ersons ntitled to &enefits
t is tre that "hatever !enefits the ma#ority nion o!tains from the employerccre to its mem!ers as "ell as to non-mem!ers. Ior the !enefits of aollective !argaining agreement are e0tended to all employees regardless of
heir mem!ership in the nion !ecase to "ithhold the same from the non-mem!ers "old !e to discriminate against them.
t is even conceded that a la!orer can claim !enefits from a collective
argaining agreement entered into !et"een the company and the nion of"hich he is a mem!er at the time of the conclsion of the agreement, evenfter he has resigned from said nion.
.2 *anagers Fot ntitled to C&A &enefits 0ception
*anagers, "ho are not allo"ed to nionize to !argain collecti
"ith the employer, cannot claim the !enefits contained in the
negotiated !y the "or$ers nder them. /hey cannot o!tain indir
"hat they cannot do directly.
Accordingly, managerial employees cannot, in the a!sence of an agreem
the contrary, !e allo"ed to share in the concessions o!tained !y the nion throgh collective negotiation. 6ther"ise, they "old !e e0posed
temptation of collding "ith the nion dring the negotiations tdetriment of the employer.
;o"ever, there is nothing to prevent the employer from granting !enef
managerial employees e
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ection ). ffects of merger or consolidation. - /he merger or consolidationhall have the follo"ing effectsD
00
. /he srviving or consolidated corporation shall !e responsi!le and lia!le
or all the lia!ilities and o!ligations of each of the constitent corporations inhe same manner as if sch srviving or consolidated corporation had itselfncrred sch lia!ilities or o!ligations and any pending claim, action orroceeding !roght !y or against any of sch constitent corporations may !e
rosected !y or against the srviving or consolidated corporation. /he rightsf creditors or liens pon the property of any of sch constitent corporationshall not !e impaired !y sch merger or consolidation. %n
.4 Eiley Boctrine
/he disappearance !y merger of a corporate employer "hich has
ntered into a collective !argaining agreement "ith a nion does not
tomatically terminate all rights of the employees covered !y the
greement, even thogh the merger is for genine !siness reasons.
nder the Eiley doctrine, a dty to ar!itrate arising from a collective
argaining agreement srvives the employers ceasing to do !siness
s a separate entity after its merger "ith a s!stantially large
orporation, so as to !e !inding on the larger corporation, "hereelevant similarity and continity of operations across the change in
"nership is evidenced !y the "holesale transfer of the smaller
orporations employees to the larger corporations plant. f a
ontractal dty to ar!itrate srvives the employers merger into
nother corporate employer,
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0hast all the remedies availa!le to him nder sch contract. And a
ort shold not entertain any complaint !y an aggrieved employee
ntil proper se has !een made of the contract grievance procedre
greed pon !y employer and the !argaining representative.
/he grievance machinery nder the agreement is the very heart ofndstrial self)government.
*ay a grievance !e !roght to volntary ar!itration "ithot passing
hrogh the grievance procedre nder the C&AJ
/his appears to !e proscri!ed !y the @a!or Code "hich directs the
arties to a C&A to esta!lish a grievance machinery for the ad#stment
nd resoltion of grievances arising from the interpretation ornforcement of company personnel policies.
n vie", ho"ever, of the =tate policy to encorage volntary
r!itration of all other la!or-management disptes, it is s!mitted that
grievance may !e !roght directly to volntary ar!itration "ithot
assing throgh the grievance machinery, especially "hen the latter
as !een proven to !e ineffective in the past, or "hen the parties
nadvertently failed to inclde a grievance machinery provision in
heir C&A.
.2 Eaiver of Grievance *achinery 'rocedre and =!mission to LA
Article 22 of the @a!or Code provides that pon agreement of the parties, theolntary ar!itrator can hear and decide all other la!or disptes.
Contrary to the finding of the Cort of Appeals, volntary ar!itration as amode of settling the dispte 5 4t 906e7 /4 0e5/47e4t5. &oth partiesndeed agreed to s!mit the isse of validity of the dismissal of petitioner to
he #risdiction of the volntary ar!itrator !y the =!mission Agreement dlyigned !y their respective consels. As the volntary ar!itrator hadrisdiction over the parties> controversy, discssion of the second isse is noonger necessary.
/he employees "aiver of her option to s!mit her case to grievancemachinery did not amont to relins immediate spervisor. /he shop ste"ard, themployee and his immediate spervisor shall e0ert efforts to settle therievance at their level.
%c f no settlement is reached, the grievance shall !e referred to the grievcommittee "hich shall have ten %1) days to decide the case.
Ehere the isse involves or arises from the interpretation or implementof a provision in the collective !argaining agreement, or from any omemorandm, circlar or assignment issed !y the appropriate athor
the esta!lishment, and sch isse cannot !e resolved at the level of theste"ard or the spervisor, the same may !e referred immediately tgrievance committee.
,. VOLUNTARY ARBITRATION
=ection 3. =!mission to volntary ar!itration. - Ehere grievance remnresolved, either party may serve notice pon the other of its decisis!mit the isse to volntary ar!itration. /he notice shall state the ississes to !e ar!itrated, copy thereof frnished the !oard or the vol
ar!itrator or panel of volntary ar!itrators named or designated icollective !argaining agreement. f the party pon "hom the notice is s
fails or refses to respond favora!ly "ithin seven %( days from rethereof, the volntary ar!itrator or panel of volntary ar!itrators designa
the collective !argaining agreement shall commence volntary ar!itrproceedings. Ehere the collective !argaining agreement does no
designate, the !oard shall call the parties and appoint a volntary ar!itrapanel of volntary ar!itrators, "ho shall thereafter commence ar!it
proceedings in accordance "ith the proceeding paragraph.
n instances "here parties fail to select a volntary ar!itrator or panvolntary ar!itrators, the regional !ranch of the &oard shall designatvolntary ar!itrator or panel of volntary ar!itrators, as may !e nece"hich shall have the same force and effect as if the parties have selecte
ar!itrator.
/he parties to a C&A "ill decide on the nm!er of ar!itrators
may hear a dispte only "hen the need for it arises. ven the
itself does not specify the nm!er of ar!itrators. /heir alternativ
"hether to have one or three ar!itrators 7 have their respe
advantages and disadvantages. n this matter, cost is not the
consideration fll deli!eration on the isses is another, and it is
accomplished in a hearing condcted !y three ar!itrators. n effecparties are afforded the latitde to decide for themselves
composition of the grievance machinery as they find appropriate
particlar sitation.
@a!or ar!itration is the reference of a la!or dispte to a third part
determination on the !asis of evidence and argments presente
sch parties, "ho are !ond to accept the decision.
Lolntary ar!itration has !een defined as a contractal proceeding "hthe parties to any dispte or controversy, in order to o!tain a speedine0pensive final disposition of the matter involved, select a #dge of
o"n choice and !y consent s!mit their controversy to him for determinnder volntary ar!itration, on the other hand, referral of a dispte !
parties is made, prsant to a volntary ar!itration clase in their colleagreement, to an impartial third person for a final and !inding resoltion.
deally, ar!itration a"ards are spposed to !e complied "ith !y !oth p"ithot delay, sch that once an a"ard has !een rendered !y an ar!itrnothing is left to !e done !y !oth parties !t to comply "ith the same.
all, they are presmed to have freely chosen ar!itration as the mosettlement for that particlar dispte. 'rsant thereto, they have chomtally accepta!le ar!itrator "ho shall hear and decide their case. A!ovthey have mtally agreed to de !ond !y said ar!itrator>s decision.
Complsory ar!itration is a system "here!y the parties to a dispt
compelled !y the government to forego their right to stri$e and are compto accept the resoltion of their dispte throgh ar!itration !y a third pa
/he essence of ar!itration remains since a resoltion of a dispte is arriv
!y resort to a disinterested third party "hose decision is final and !indin
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he parties, !t in complsory ar!itration, sch a third party is normallyppointed !y the government.
n 'hilippine conte0t, the 8#dge9 in volntary ar!itration is called ar!itrator,"hile that in complsory is la!or ar!iter. /he #risdiction of a LA is stated inArticles 21 and 22 "hile that of an @A is in Article 21(.
.1 Lolntary Ar!itrationD A 'rivate Kdicial =ystem
A volntary ar!itrator 8is not a p!lic tri!nal imposed pon the
arties !y a sperior athority "hich the parties are o!liged to accept.
;e has no general character to administer #stice for a commnity
"hich transcends the parties. ;e is rather part of a system of self-
overnment created !y and confined to the parties.9
/he primary fnction of volntary la!or ar!itration is to provide %1 arocess for the orderly disposition of disptes and %2 a fondation for
ta!le la!or-management relations.
.2 Lolntary Ar!itrationD A *aster 'rocedre
n la!or-management relations volntary ar!itration is a master
rocedre. Any and all $inds of la!or di