Members:

AMBA, QUELTON REY C.

BALDECASA, AILEEN P.
FRANCISCO, PERRY
MANAGUIT, GRACE
SUSVILLA, IAN

1. What is the most important element before the provisions of the Labor Code
may be applied?

The existence of employer-employee relationship is necessary. Without this

relationship, the Labor Code does not apply.

2. What are the areas covered by the Labor protection clause of the 1987
Constitution?

Labor Code provides, the right to self-organization includes the right to form, join or
assist labor organizations for the purpose of collective bargaining through
representatives of their own choosing and to engage in lawful concerted activities for
the same purpose for their mutual aid and protection. Labor Code mandates that
workers shall have the right to participate in policy and decision-making processes of
the establishment where they are employed insofar as said processes will directly affect
their rights, benefits and welfare.1

3. What are covered by right of self-organization?

Coverage and employees’ right to self-organization. All persons employed in

commercial, industrial and agricultural enterprises and in religious, charitable, medical,
or educational institutions, whether operating for profit or not, shall have the right to self-
organization and to form, join, or assist labor organizations of their own choosing for
purposes of collective bargaining. Ambulant, intermittent and itinerant workers, self-
employed people, rural workers and those without any definite employers may form
labor organizations for their mutual aid and protection. (As amended by Batas
Pambansa Bilang 70, May 1, 1980)2
4. Give some of the characteristics of the Right of self-organization

The right to form a union or association or to self-organization comprehends two

notions, to wit: (a) the liberty or freedom, that is, the absence of restraint which

1
Samahan ng Manggagawa sa Hanjin Shipyard v. Bureau of Labor Relations HHIC-PIDL G.R. No. 211145, October
14, 2015
2
Article 243, Book V
guarantees that the employee may act for himself without being prevented by law; and
(b) the power, by virtue of which an employee may, as he pleases, join or refrain from
joining an association.3

5. What do you mean by the jurisdictional preconditions to set in motion the

mechanics of collective bargaining?

The mechanics of collective bargaining is set in motion only when the following
jurisdictional preconditions are present, namely, (1) possession of the status of majority
representation of the employees' representative in accordance with any of the means of
selection or designation provided for by the Labor Code; (2) proof of majority
representation; and (3) a demand to bargain under Article 251, par. (a) of the New
Labor Code. The pre-conditions require that the legitimate labor organization is the
certified bargaining agent in the bargaining unit.4

6. What is the effect if these conditions are present?

The mutual obligation of the parties to bargain, the employer, however, is not under any
legal duty to initiate contract negotiation. 5

7. Distinguish Labor Organization from Legitimate Labor organization

A labor organization is defined as any union or association of employees which

exists in whole or in part for the purpose of collective bargaining or of dealing with
employers concerning terms and conditions of employment. A labor organization has
two broad rights: (1) to bargain collectively and (2) to deal with the employer concerning
terms and conditions of employment. To bargain collectively is a right given to a union
once it registers itself with the DOLE. Dealing with the employer, on the other hand, is a
generic description of interaction between employer and employees concerning
grievances, wages, work hours and other terms and conditions of employment, even if
the employees' group is not registered with the DOLE.6

A legitimate Labor organization is an association or aggrupation of employees

which exists in whole or in part for the purpose of collective bargaining or of dealing with
employers concerning terms and conditions of employment. The labor union

3
Samahan ng Manggagawa sa Hanjin Shipyard v. Bureau of Labor Relations HHIC-PIDL, G.R. No. 211145,
October 14, 2015
4
KIOK LOY v. NLRC, G.R. No. L-54334 January 22, 1986
5
Id.
6
Id.
contemplate in the area of the labor relations is legitimate, that is, duly registered with
the DOLE and includes any branch, local or affiliate thereof.
R.A. No. 875 provides: Sec. 24. Rights of Labor Organizations. — A legitimate
labor organization shall have the right — (a) To act as the representative of its members
for the purpose of collective bargaining, pursuant to section three of this Act; (b) To be
certified as the exclusive representative of the employees in a collective bargaining unit,
as provided in section twelve (a) x x x.7

8. When does a labor organization acquire legal personality?

A federation, national union or industry or trade union center or an independent

union shall acquire legal personality and shall be entitled to the rights and privileges
granted by law to legitimate labor organization upon issuance of the certificate of
registration xxx.8

9. What are the effects the acquisition of legal personality by a Labor

Organization?

A legitimate labor organization shall have the right:

a. To act as the representative of its members for the purpose of collective

bargaining;
b. To be certified as the exclusive representative of all the employees in an
appropriate bargaining unit for purposes of collective bargaining;
c. To be furnished by the employer, upon written request, with its annual audited
financial statements, including the balance sheet and the profit and loss
statement, within thirty (30) calendar days from the date of receipt of the request,
after the union has been duly recognized by the employer or certified as the sole
and exclusive bargaining representative of the employees in the bargaining unit,
or within sixty (60) calendar days before the expiration of the existing collective
bargaining agreement, or during the collective bargaining negotiation;
d. To own property, real or personal, for the use and benefit of the labor
organization and its members;
e. To sue and be sued in its registered name; and
f. To undertake all other activities designed to benefit the organization and its
members, including cooperative, housing, welfare and other projects not contrary
to law.9
10. When may an employee join a Union?

7
Republic (DOLE) v Kawashima Textile MFG, G.R. No. 160352 July 23, 2008
8
Article 240 Labor Code
9
Article 242 Labor Code
 Any employee, whether employed for a definite period or not, shall beginning on
his first day of service, be considered as an employee for purposes of membership in
any labor union.10

11. What are the rights and conditions of union membership?

Rights and conditions of membership in a labor organization. The following are the
rights and conditions of membership in a labor organization:

a. No arbitrary or excessive initiation fees shall be required of the members of a

legitimate labor organization nor shall arbitrary, excessive or oppressive fine and
forfeiture be imposed;
b. The members shall be entitled to full and detailed reports from their officers and
representatives of all financial transactions as provided for in the constitution and
by-laws of the organization;
c. The members shall directly elect their officers, including those of the national
union or federation, to which they or their union is affiliated, by secret ballot at
intervals of five (5) years. No qualification requirements for candidacy to any
position shall be imposed other than membership in good standing in subject
labor organization. The secretary or any other responsible union officer shall
furnish the Secretary of Labor and Employment with a list of the newly-elected
officers, together with the appointive officers or agents who are entrusted with the
handling of funds, within thirty (30) calendar days after the election of officers or
from the occurrence of any change in the list of officers of the labor
organization; (As amended by Section 16, Republic Act No. 6715, March 21,
1989)
d. The members shall determine by secret ballot, after due deliberation, any
question of major policy affecting the entire membership of the organization,
unless the nature of the organization or force majeure renders such secret ballot
impractical, in which case, the board of directors of the organization may make
the decision in behalf of the general membership;
e. No labor organization shall knowingly admit as members or continue in
membership any individual who belongs to a subversive organization or who is
f. engaged directly or indirectly in any subversive activity;
g. No person who has been convicted of a crime involving moral turpitude shall be
eligible for election as a union officer or for appointment to any position in the
union;
h. No officer, agent or member of a labor organization shall collect any fees, dues,
or other contributions in its behalf or make any disbursement of its money or
funds unless he is duly authorized pursuant to its constitution and by-laws;
i. Every payment of fees, dues or other contributions by a member shall be
evidenced by a receipt signed by the officer or agent making the collection and
entered into the record of the organization to be kept and maintained for the
purpose;
10
Article 292 (c) Labor Code
j. The funds of the organization shall not be applied for any purpose or object other
than those expressly provided by its constitution and by-laws or those expressly
authorized by written resolution adopted by the majority of the members at a
general meeting duly called for the purpose;
k. Every income or revenue of the organization shall be evidenced by a record
showing its source, and every expenditure of its funds shall be evidenced by a
receipt from the person to whom the payment is made, which shall state the date,
place and purpose of such payment. Such record or receipt shall form part of the
financial records of the organization.
Any action involving the funds of the organization shall prescribe after three (3)
years from the date of submission of the annual financial report to the
Department of Labor and Employment or from the date the same should have
been submitted as required by law, whichever comes earlier: Provided, That this
provision shall apply only to a legitimate labor organization which has submitted
the financial report requirements under this Code: Provided, further, that failure of
any labor organization to comply with the periodic financial reports required by
law and such rules and regulations promulgated thereunder six (6) months after
the effectivity of this Act shall automatically result in the cancellation of union
registration of such labor organization; (As amended by Section 16, Republic Act
No. 6715, March 21, 1989)
l. The officers of any labor organization shall not be paid any compensation other
than the salaries and expenses due to their positions as specifically provided for
in its constitution and by-laws, or in a written resolution duly authorized by a
majority of all the members at a general membership meeting duly called for the
purpose. The minutes of the meeting and the list of participants and ballots cast
shall be subject to inspection by the Secretary of Labor or his duly authorized
representatives. Any irregularities in the approval of the resolutions shall be a
ground for impeachment or expulsion from the organization;
m. The treasurer of any labor organization and every officer thereof who is
responsible for the account of such organization or for the collection,
management, disbursement, custody or control of the funds, moneys and other
properties of the organization, shall render to the organization and to its
members a true and correct account of all moneys received and paid by him
since he assumed office or since the last day on which he rendered such
account, and of all bonds, securities and other properties of the organization
entrusted to his custody or under his control. The rendering of such account shall
be made:

1. At least once a year within thirty (30) days after the close of its fiscal year;

2. At such other times as may be required by a resolution of the majority of

the members of the organization; and

3. Upon vacating his office.

 The account shall be duly audited and verified by affidavit and a copy thereof
shall be furnished the Secretary of Labor.

n. The books of accounts and other records of the financial activities of any labor
organization shall be open to inspection by any officer or member thereof during
office hours;
o. No special assessment or other extraordinary fees may be levied upon the
members of a labor organization unless authorized by a written resolution of a
majority of all the members in a general membership meeting duly called for the
purpose. The secretary of the organization shall record the minutes of the
meeting including the list of all members present, the votes cast, the purpose of
the special assessment or fees and the recipient of such assessment or fees.
The record shall be attested to by the president.
p. Other than for mandatory activities under the Code, no special assessments,
attorney’s fees, negotiation fees or any other extraordinary fees may be checked
off from any amount due to an employee without an individual written
authorization duly signed by the employee. The authorization should specifically
state the amount, purpose and beneficiary of the deduction; and
q. It shall be the duty of any labor organization and its officers to inform its members
on the provisions of its constitution and by-laws, collective bargaining agreement,
the prevailing labor relations system and all their rights and obligations under
existing labor laws.

For this purpose, registered labor organizations may assess reasonable dues to
finance labor relations seminars and other labor education activities.

Any violation of the above rights and conditions of membership shall be a ground for
cancellation of union registration or expulsion of officers from office, whichever is
appropriate. At least thirty percent (30%) of the members of a union or any member
or members specially concerned may report such violation to the Bureau. The
Bureau shall have the power to hear and decide any reported violation to mete the
appropriate penalty.

Criminal and civil liabilities arising from violations of above rights and conditions of
membership shall continue to be under the jurisdiction of ordinary courts.11

12. Do Workers have the right not join a Labor Organization?

It is clear, therefore, that the right to join a union includes the right to abstain from
joining any union Inasmuch as what both the Constitution and the Industrial Peace Act
have recognized, and guaranteed to the employee, is the ‘right’ to join associations of
his choice, it would be absurd to say that the law also imposes, in the same breath,

11
Article 241 Labor Code
upon the employee the duty to join associations. The law does not enjoin an employee
to sign up with any association.12

13. What is a check off?

In check-off, the employer, on agreement with the Union, or on prior authorization

from employees, deducts union dues or agency fees from the latter’s wages and remits
them directly to the union. 11 It assures continuous funding for the labor organization.
As this Court has acknowledged, the system of check-off is primarily for the benefit of
the union and only indirectly for the individual employees.13

14. What are the requisites of a valid check off?

Article 241 has three (3) requisites for the validity of the special assessment for
union’s incidental expenses, attorney’s fees and representation expenses. These are: 1)
authorization by a written resolution of the majority of all the members at the general
membership meeting called for the purpose; (2) secretary’s record of the minutes of the
meeting; and (3) individual written authorization for check off duly signed by the
employees concerned.14

15. What is an agency fee?

Agency fee is the sum equal to union dues.15

16. What is an appropriate collective bargaining unit?

Appropriate Collective Bargaining unit is a group of employees where there is a

mutuality of interest among the employees which will best assure to all employees the
exercise of their collective bargaining rights.16

17. What are the tests to determine the appropriate collective bargaining unit?
Explain each of the tests.

The following govern the determination of appropriate collective bargaining unit:

a. Globe Doctrine- This is the express will of the employees. This doctrine arose
when multiple labor groups claiming to be the proper bargaining unit and with the
12
Knitoy Manufacturing, Inc vs Ferrer-Calleja, GR NO. 81883, September 23, 1992
13
Id.
14
Evangeline J. Gabriel, et.al v. The Honorable Secretary Of Labor & Employment, G.R. No. 115949. March 16, 2000
15
Inguillo v. First Philippine Scales, Inc., G.R. No. 165407, June 5, 2009, 588 SCRA 471, 485-486
16
San Miguel Foods, Inc. vs. San Miguel Corp. Supervisors and Exempt Union, G.R. No. 146206 August 1, 2011
 valid basis of their claims, certification election will be held for employees to
select which group will be chosen to represent the bargaining unit.

b. Mutuality of interest tests affinity – this is reflected in group having substantial

similarity of work and duties, or similarity of compensation and working
conditions.

c. Prior collective bargaining history- In this test, the existence of a bargaining

history is a factor that may be reckoned with in determining the appropriate
bargaining unit, but is not decisive or conclusive.

d. Similarity of Employment status test- such as temporary, seasonal and

probationary employees.17

18. Who are excluded from the collective bargaining unit?

Managerial Employee as provided by Article 255 of the Labor Code and

Confidential employees are defined as those who (1) assist or act in a confidential
capacity, (2) to persons who formulate, determine, and effectuate management policies
in the field of labor relations.18

19. Explain the rationale why there are excluded from the collective bargaining
unit.

The rationale why they are excluded for they have access to confidential data
relating to management policies that could give rise to potential conflict of interest with
their Union membership.19

20. What are the ways to determine the Sole and Exclusive Bargaining Agent
(SEBA)?

a. Request for SEBA certification;

b. Certification election.
c. Consent election;
d. Run-off election.
e. Re-run election.20

21. What is an organized establishment?

17
San Miguel Foods, Inc. vs. San Miguel Corp. Supervisors and Exempt Union, G.R. No. 146206 August 1, 2011
18
Id.
19
Tunay Na Pagkakaisa Ng Manggagawa Sa Asiabrewery, Vs. Asia Brewery, INC. G.R. No. 162025 August 3, 2010
20
Labor Code of the Philippines Volume II, Salvador Poquiz, p 267
 An unorganized establishment is defined as a company or firm where there is no
recognized or certified collective bargaining agent in the premises. The firm or company
will still be treated as unorganized establishment even with the existence of the some
union if no one among the union is certified as SEBA.21

22. What are the rights of a SEBA?

A legitimate labor organization shall have the right:

(a) To act as the representative of its members for the purpose of collective
bargaining;
(b) To be certified as the exclusive representative of all the employees in an
appropriate bargaining unit for purposes of collective bargaining;
(c) To be furnished by the employer, upon written request, with its annual audited
financial statements, including the balance sheet and the profit and loss statement,
within thirty (30) calendar days from the date of receipt of the request, after the union
has been duly recognized by the employer or certified as the sole and exclusive
bargaining representative of the employees in the bargaining unit, or within sixty (60)
calendar days before the expiration of the existing collective bargaining agreement, or
during the collective bargaining negotiation;
(d) To own property, real or personal, for the use and benefit of the labor
organization and its members;
(e) To sue and be sued in its registered name; and
(f) To undertake all other activities designed to benefit the organization and its
members, including cooperative, housing, welfare and other projects not contrary to law.
Notwithstanding any provision of a general or special law to the contrary, the
income and the properties of legitimate labor organizations, including grants,
endowments, gifts, donations and contributions they may receive from fraternal and
similar organizations, local or foreign, which are actually, directly and exclusively used
for their lawful purposes, shall be free from taxes, duties and other assessments. The
exemptions provided herein may be withdrawn only by a special law expressly repealing
this provision.22

23. What is a Certification election?

A certification election is the process of determining the sole and exclusive

bargaining agent of the employees in an appropriate bargaining unit for purposes of
collective bargaining and for there to be a valid certification election, majority of the
bargaining unit must have voted, and the winning union must have garnered majority of
the valid votes cast.23
24. What are the kinds of Certification elections?

a. Certification Election in an organized Establishment (Article 268)

21
Labor Code of the Philippines Volume II, Salvador Poquiz, p 318
22
Article 251 of the Labor Code
23
NUWH RAIN-Mla. Pavilion Chapter v. Sec. of Labor, GR. 181531, 31 July 2009
b. Certification Election in an unorganized Establishment (Article 269)
c. Certification Election where the employer has to file the petition (Article 270)

25. Explain each kind of Certification election?

A. Certification Election in an organized Establishment (Article 268)

In an organized establishment a petition election can be filed, questioning the
majority status of the incumbent bargaining agent

B. Certification Election in an unorganized Establishment (Article 269)

It is a petition for certification election can be filed and automatically be
conducted by Med-Arbiter and,

C. Certification Election where the employer has to file the petition (Article 270)
The existence of this is because the employer has been requested to bargain
collectively.

26. When may a petition for a Certification election be filed? Explain.

A petition for certification election may be filed anytime except24:

a. When a fact of voluntary recognition has been entered or valid certification,

consent or run-off election has been conducted within the bargaining unit with
one (1) year prior to the filing of the petition for certification election. Where an
appeal has been filed by order of the Med-Arbiter certifying the results of the
election, the running of the year period shall be suspended until the decision on
the appeal has become final and executory.
b. When the duly certified union has commenced and sustained negotiation in good
faith with the employer in accordance with Article 256 of the labor Code within
one-year period referred to in the immediately preceding paragraph,
c. When a bargaining deadlock to which an incumbent or certified bargaining agent
us a party or had been submitted to conciliation or arbitration or had become
subject of a valid notice of strike or lockout.
d. When a collective bargaining agreement between the employer and duly
recognized or certified bargaining agent has been registered, the petition may be
filed only within sixty (60) days prior to its expiry.

27. What is the purpose of a certification election?

24
Section 3 of Rule VIII of the Omnibus Rules Implementing the Labor Code.
The purpose of a certification election is precisely the ascertainment of the wishes of the
majority of the employees in the appropriate bargaining unit: to be or not to be
represented by a labor organization, and in the affirmative case, by which particular
labor organization25.

28. Who are the employees entitled to vote in a certification election?

All employees who are members of the appropriate bargaining unit sought to be
represented by the petitioner at the time of the issuance of the order granting the
conduct of a certification election shall be eligible to vote26.

30. What is a run- off election?

A run-off election refers to an election between the labor unions receiving the two (2)
highest number of votes in a certification or consent election with three (3) or more
choices, where such a certified or consent election results in none of the three (3) or
more choices receiving the majority of the valid votes cast; provided that the total
number of votes for all contending unions is at least fifty percent (50%) of the number of
votes cast27.

31. Can a No union vote win in a certification election?

Yes. The purpose of a certification election is precisely the ascertainment of the wishes
of the majority of the employees in the appropriate bargaining unit: to be or not to be
represented by a labor organization, and in the affirmative case, by which particular
labor organization. If the results of the election should disclose that the majority of the
workers do not wish to be represented by any union, then their wishes must be
respected, and no union may properly be certified as the exclusive representative of the
workers in the bargaining unit in dealing with the employer regarding wages, hours and
other terms and conditions of employment28.

32. What are the grounds to deny a petition for certification election?

25
https://www.chanrobles.com/cralaw/1992junedecisions.php?id=284, Reyes vs. Trajan, GR No. 84433, 2 June
1992
26
https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/1/49538, NUWHRAIN-Mla. Pavilion Chapter v. Sec. of
Labor, GR. 181531, 31 July 2009
27
G.R. No. 181531
28
G.R. No. 84433
Section 1429. Denial of the petition; Grounds. – The Mediator-Arbiter may dismiss the
petition on any of the following grounds:
(a) the petitioning union or national union/federation is not listed in the Department’s
registry of legitimate labor unions or that its registration certificate has been cancelled
with finality in accordance with Rule XIV of these Rules;

(b) failure of a local/chapter or national union/federation to submit a duly issued charter

certificate upon filing of the petition for certification election;

(c) filing the petition before or after the freedom period of a duly registered collective
bargaining agreement; provided that the sixty-day period based on the original collective
bargaining agreement shall not be affected by any amendment, extension or renewal of
the collective bargaining agreement;

(d) filing of a petition within one (1) year from the date of recording of the SEBA
certification , or within the same period from a valid certification, consent or runoff
election where no appeal on the results of the certification, consent or run-off election is
pending;

(e) where a duly certified union has commenced and sustained negotiations with the
employer in accordance with Article 268 [256] of the Labor Code within the one-year
period referred to in Section 14.d of this Rule, or where there exists a bargaining
deadlock which has been submitted to conciliation or arbitration or has become the
subject of a valid notice of strike or lockout where an incumbent or certified bargaining
agent is a party;

(f) in an organized establishment, the failure to submit the twenty-five percent (25%)
signature requirement to support the filing of the petition for certification election;

(g) non-appearance of the petitioner for two (2) consecutive scheduled conferences
before the Mediator-Arbiter despite due notice; and

(h) absence of employer-employee relationship between all the members of the

petitioning union and the establishment where the proposed bargaining unit is sought to
be represented.

33. Distinguish Certification election from Collective Bargaining?

A certification election is the process of determining the sole and exclusive bargaining
agent of the employees in an appropriate bargaining unit for purposes of collective
bargaining. Collective bargaining, refers to the negotiated contract between a legitimate
labor organization and the employer concerning wages, hours of work and all other
terms and conditions of employment in a bargaining unit30.
29
Book V, Rule VIII, Sec. 14
30
G.R. No. 181531
34. What is the so-called double majority rule?

For there to be a valid certification election, majority of the bargaining unit must have
voted, AND the winning union must have garnered majority of the valid votes cast 31.

35. What is the effect if no Union obtained double majority of the valid votes
cast in a CE?

If the results of the election should disclose that the majority of the workers do not wish
to be represented by any union, then their wishes must be respected, and no union may
properly be certified as the exclusive representative of the workers in the bargaining unit
in dealing with the employer regarding wages, hours and other terms and conditions of
employment. The minority employees — who wish to have a union represent them in
collective bargaining — can do nothing but wait for another suitable occasion to petition
for a certification election and hope that the results will be different 32.

36. What is ONE COMPANY-ONE UNION POLICY?

A policy is in favor of a larger unit and not the creation of smaller units in one
establishment which might lead to fomentation, thus impractical33.

37. Is ONE COMPANY-ONE UNION POLICY absolute?

No. The one company-one union policy must yield to the right of the employees to form
unions or associations for purposes not contrary to law, to self-organization and to enter
into collective bargaining negotiations, among others, which the Constitution
guarantees.

Article 255 of the Labor Code expressly allows supervisory employees who are not
performing managerial functions to join, assist or form their separate union but bars
them from membership in a labor organization of the rank-and-file employees34.

38. Can there be more than one bargaining unit in a company?

31
G.R. No. 181531
32
G.R. No. 84433
33
G.R. No. 74262
34
GR NO. 81883
Yes, as provided by Article 255 of the Labor Code and of Section 2(c), Rule V, Book V
of the Implementing Rules and Regulations of the Labor Code35.

39. What is the effect on the legitimacy of a labor organization in case of

mingling of supervisory and rank-and-file employees in one and the same labor
organization?

There is no effect. After a labor organization has been registered, it may exercise all the
rights and privileges of a legitimate labor organization. Any mingling between
supervisory and rank-and-file employees in its membership cannot affect its
legitimacy36.

40. What is a Union Security Clause?

"Union security" is a generic term, which is applied to and comprehends "closed shop,"
"union shop," "maintenance of membership," or any other form of agreement which
imposes upon employees the obligation to acquire or retain union membership as a
condition affecting employment37.

41. What are the kinds of Union Security Clause? Explain each 38.

a. Union Shop - There is union shop when all new regular employees are required
to join the union within a certain period as a condition for their continued
employment.

b. Maintenance of membership - There is maintenance of membership shop when

employees, who are union members as of the effective date of the agreement, or
who thereafter become members, must maintain union membership as a
condition for continued employment until they are promoted or transferred out of
the bargaining unit, or the agreement is terminated.

c. Closed shop - A closed shop, on the other hand, may be defined as an enterprise
in which, by agreement between the employer and his employees or their
representatives, no person may be employed in any or certain agreed
departments of the enterprise unless he or she is, becomes, and, for the duration
of the agreement, remains a member in good standing of a union entirely
comprised of or of which the employees in interest are a part.

42. A Union Security clause was designed to guarantee the continued

existence of the union through enforced membership for the benefit of the
35
GR NO. 81883
36
G.R. No. 169717
37
G.R. No. 160828
38
G.R. No. 160828
workers. What are the exceptions of the enforced membership under the Union
Security clause?

If an employee is already a member of a labor union different from the contracting labor
union, said employee or worker cannot be obliged to become a member of the
contracting union as a condition for his continued employment39.

If an employee belongs to any religious sect which prohibits affiliation of their members
with any labor organization40.

43. What is the effect of Union Security clause on the freedom or the right not
to join or exercise the right of self-organization?

The rule is that the right not to join cannot invoked. If the said employee or worker is a
non-member of any labor union, he can be compelled to join the contracting labor union,
and said refusal ·to do so would constitute a justifiable basis for his dismissal41.

44. The rule is when there is Union Security clause, the right not join a union
cannot be invoked, what is the exception?

If an employee is already a member of a labor union different from the contracting labor
union, said employee or Worker cannot be obliged to become a member of the
contracting union as a condition for his continued employment.

Members of said religious sects cannot be compelled or coerced to join labor unions
even -when said unions have closed-shop agreements with the employers; that in spite
of any closed-shop agreement, members of said religious sects cannot be refused
employment or dismissed from their jobs on the sole ground that they are not members
of the collective bargaining union42. Religious or conscientious objectors cannot be
compelled to join a union. Their right to self-organization is subordinate on religious
grounds for as between contractual rights and constitutional rights, such as freedom of
religion or conscience, the latter shall prevail. In other words, the free exercise of
religious profession or belief is superior to contract rights.

45. What it the rationale behind why the legal personality of a labor Union
cannot be attacked collaterally by the employer during the certification election
proceedings?

39
Article 259(e)
40
R.A. 3350
41
Juat v. CIR, 15 SCRA 391
42
Victoriano vs. Elizalde Rope Workers’ Union, 59 SCRA 54
Registration requirement is a valid exercise of police power because the activities in
which the labor organizations, associations and, unions of workers are engaged affect
public interest, which should be protected. It is not a limitation to the right of assembly or
association if the same can be exercised with or without registration. The latter is merely
a condition sine qua non for the acquisition of legal personality by labor organizations,
associations or unions and possession of the rights and privileges granted by law to
legitimate labor organizations. Such legal personality cannot be subject to collateral
attack in a petition for certification election but may be questioned only in an
independent petition for cancellation (Sec. 8 Rule IV, D.O. 40-03; Tagaytay Highlands
Int’l. Golf Club, Inc. vs. Tagaytay Highlands Employees Union, G.R. No.142000, 22
January 2003).

46. What is a collective bargaining agreement?

The Code defines “to bargain collectively” as the performance of a mutual obligation to
meet and confer promptly and expeditiously and in good faith for the purpose of
negotiating an agreement with respect to wages, hours of work and all other terms and
conditions of employment including proposals for adjusting any grievances or questions
arising under such agreement and executing a contract incorporating such agreement if
requested by either party but duty does not compel any party to agree to a proposal or
to make any concession

A collective bargaining agreement refers to a contract executed upon request of either

the employer or the exclusive bargaining representative incorporating the agreement
reached after negotiations with respect to wages, hours of work and all other terms and
conditions of employment, including mandatory provisions for grievance and arbitration
machineries (Davao Integrated Stevedoring Services vs. Abarquez, 220 SCRA 197;
Rule II, Procedural Guidelines in the Conduct of VA Proceedings).

47. Who, in law, may bargain collectively?

The Constitution guarantees the right of all workers to conduct collective bargaining and
negotiations.
Under the Labor Code, a legitimate labor organization has the following rights with
respect to collective bargaining:
a) To act as the representative of its members for the purpose of collective
bargaining;
b) To be certified as the exclusive representative of all the employees in an
appropriate bargaining unit for purposes of collective bargaining;
c)
In addition, persons employed in commercial, industrial and agricultural enterprises and
in religious, charitable, medical, or educational institutions, whether operating for profit
or not, shall have the right to self-organization and to form, join, or assist labor
organizations of their own choosing for purposes of collective bargaining.
48. Explain the nature of the procedure of the Collective bargaining.

Collective Bargaining denotes negotiations looking forward to a collective agreement.

However, it does not end with the execution of an agreement. It is a continuous
process. It requires both parties, the employer and duly authorized representatives of
employees to deal with each other with open and fair minds and sincerely endeavor to
fight the obstacles in the process to stabilize employer-employee relationship
(PAMBUSCO vs. PAMBUSCO Employees Union, 68 Phil. 451; Republic Savings Bank
vs. CIR, 21 SCRA 226) during the collective bargaining process. It is an attempt to
resolve conflicting interests in order to sustain a harmonious, continuing relationship.

49. What is the effect if the employer refuses to submit its counter-proposal to
the SEBA’s proposed agreement?

The employer’s failure to submit counter-proposal within ten (10) calendar days in
indicative of its utter lack of interest in bargaining with the union, indication of bad faith
and it is a clear evasion of the duty to bargain collectively. Thus, constituting unfair labor
practice.

As a general rule, when a CBA already exists, its provisions shall continue to govern the
relationship between parties until a new one is agreed upon. The rule presupposes that
all other things are equal, that is, that neither party is guilty of bad faith. When one party
abuses this grace period by purposely delaying the bargaining process, a departure
from the general rule is warranted. (General Milling Corporation vs. Hon. C.A., G.R. No.
146728, 11 February 2004).

For failure to submit any counter proposal to the CBA proposed by its employees’
certified bargaining agent, the employer had thereby lost its right to bargain the terms
and conditions of the CBA. Thus, the CBA proposed by its employees’ union – lock,
stock and barrel is imposed upon and erring employer.

50. What are the aspects of the duty to bargain collectively?

The following are the characteristics of collective bargaining:

a. Continuing legal relationship. It is a continuing legal relationship for it consists

of a series of contract negotiations and of the day-to-day negotiations under
the grievance machinery procedure. It does not end with the signing of the
CBA (RSB v. CIR, 21 SCRA 226).
b. Process of adjustment. It is a process of adjustment or mutual
accommodation between the employer and the union in which acceptance is
an important ingredient. In other words, the negotiating parties should bargain
 in good faith (Angat River Irrigation System ARWU, G.R. L-10943, 28
December 1957).
c. Contract of reasonable benefits. It is a means of contracting reasonable
benefits on terms and conditions of employment. Thus, the CBA should not
provide for benefits below the standards provided by law. Otherwise, it
becomes a sweetheart contract (Art. 247, infra).
d. Contract of relative equality. It is not only a process for fixing the terms of
employment but also a contract providing for a relative equality of bargaining
power where the employer is compelled to deal with the employees as a
group rather than as isolated individuals.
e. Agency of participatory democracy. It is an agency of participatory democracy
in labor relations because workers are allowed to participate in policy and
decision-making processes with the management (Sec. 3, Art. III, 1987 Phil.
Constitution).

51. After the CBA is concluded, who may enjoy the benefits thereof?

The benefits of a collective bargaining agreement extend to the laborers and employees
in the collective bargaining unit, including those who do not belong to the chosen
bargaining labor organization. Any other view would be a discrimination which the law
frowns upon (Mactan Workers’ Union vs. Aboitiz, 45 SCRA 577). However, they are
required to pay fees equivalent to the amount or dues paid by union members pursuant
to Art. 259, infra, in order to help defray the bargaining and grievance machinery costs.

52. Who may not enjoy the benefits of the concluded CBA? Explain

The following are the ones who may not enjoy the benefits of the concluded CBA:

a. Managerial employees
b. Confidential employees
c. Member-employee of a cooperative
d. Employees of international organizations
e. High-level government employees
f. Members of the AFP, police officers, policemen, firemen and jail guards

53. Are the Employees hired after the signing of the CBA entitled to enjoy the
benefits thereof?

Yes. Employees hired after the signing of the CBA are entitled to enjoy the benefits.

In the case of BPI vs. BPI Employees Union-Davao Chapter-Federation of Unions in

BPI Unibank, the Supreme Court cited the case of Liberty Flour Mills Employees v.
Liberty Flour Mills, Inc.

“The rationale for upholding the validity of union shop clauses in a CBA, even if they
impinge upon the individual employee's right or freedom of association, is not to protect
the union for the union's sake. Laws and jurisprudence promote unionism and afford
certain protections to the certified bargaining agent in a unionized company because a
strong and effective union presumably benefits all employees in the bargaining unit
since such a union would be in a better position to demand improved benefits and
conditions of work from the employer. This is the rationale behind the State policy to
promote unionism declared in the Constitution.”

54. What are the EFFECTS OF NON-REGISTRATION OF CBA? Explain the

reason of the effects.

An unregistered CBA does not bar certification election.

Likewise, a CBA - whether certified or not - cannot bar a referendum, for the outcome of
the latter binds only the union members and not the bargaining unit or the company.
Thus, a referendum on the question of union affiliation is different from certification
election. The first is an intra-union affair while the second is an inter-union affair (FFW v.
Lirag Textile Mills, G.R. No. L-41288, 31 January 1977).

Non-compliance with the procedural requirement of filing the CBA within thirty (30) days
from date of execution under Art. 237 of the Labor Code, for purposes of registration,
does not adversely affect the substantive validity of the CBA between the company and
the union, since a collective bargaining agreement is more than a contract, it being
highly impressed with public interest as an essential instrument to promote industrial
peace, bearing the blessing not only of the employer and employees concerned but
even consistent with the public good (TUP vs. Hon. Laguesma, G.R. No. 95013, 21
September 1994).

55. What is the LIFETIME OF CBA?

The life span of the CBA is five (5) years as far as the representation aspect is
concerned. However, the workers may renegotiate on other provisions of the CBA not
later than three (3) years after its execution. If the parties concluded an agreement
within six-month period, the effectivity date of such agreement shall retroact to the
immediately following the expiration date of the term of such other provisions as fixed in
the CBA. But if the agreement is arrived at beyond six (6) months, the parties shall
agree on its effectivity (Sec. 2, Rule IX, Book V, Rules Implementing the Labor Code;
Union of Filipino Employees vs. NLRC, G.R. No. 91025, 19 December 1990).

56. Can a CBA be suspended? Explain

The right to free collective bargaining includes the right to suspend it. Where the union,
bargaining, opted in the exercise of its right to collective for the ten-year suspension of
the CBA; the same does not contravene the protection to labor policy of the
Constitution. The suspension was to labor policy of the Constitution. the result of
voluntary collective undertaken negotiations undertaken in the light of the severe
financial situation faced by the employer which might lead to the latter's closure. 43

Article 265 of the Labor code has two-fold purpose – one is to promote industrial
stability and predictability, and the other is to assign specific timetables wherein
negotiations become a matter of right and requirement. Nothing in Art. 265 that prohibits
the parties from waving or suspending the mandatory timetables agreeing to enforce the
same.

The agreement does not violate the five-year representation limit mandated by Art. 265.
Under said article, the representation limit for the exclusive bargaining agent applies
only when there is an extant CBA in full force and effect. In an instant case, the parties
agreed to suspend the CBA and put in abeyance the limit on the representation period.

57. What is the exception to the 5-year representational limit of an existing

SEBA?

The parties, by mutual agreement, may enter into a renegotiated contract with a term of
three years or one which do not coincide with the original five (5) year terms of the CBA.
This agreement must be ratified by majority of the members of the bargaining unit for
purposes of validly and legally extend the representational limit of the CBA. This is
however without prejudice to the rights of another union to challenge the majority status
of the incumbent bargaining unit agent within 60 days before the lapse of the original
five-year term of the CBA.44

58. What is “AUTOMATIC RENEWAL CLAUSE” in a CBA?

The last sentence of Article 264 of the Civil Code provides for the automatic renewal
clause or principle which states that it shall be the duty of both parties to keep the status
quo and to continue in full force and effect the terms and conditions of the existing
agreement during the 60-day period and/or until a new agreement is reached by the
parties. This principle pertains only to the economic provisions of the CBA and does not
include representational aspect of the CBA.45

59. What is a substitutionary doctrine?

A substitutionary doctrine means that an employee can change their agent, but the CBA
still subsists and binds the employees up to its expiration date (Labor Relations and
Law on Dismissal with Notes and Comments, Volume II, Salvador A. Poquiz, page 259).

60. What is Unfair Labor practice?

43
Rivera vs. Espiritu, 374 SCRA 351
44
San Miguel Corp vs. Confessor, G.R. No. 111262, September 1996
45
PRI vs. Tañeca, G.R. No. 160828
Unfair labor practice refers to acts that violate the rights of the workers and employees
to self-organization.46

The Article XIII, Section 3 of the 1987 Constitution affirms that the State shall guarantee
the rights of all workers to self-organization, collective bargaining and negotiations, and
peaceful concerted activities, including the right to strike in accordance with law. Hence,
it is a violation of the constitutional right of workers and employees to self-organization,
are inimical to the legitimate interest of both labor and management, including their right
to bargain collectively and otherwise deal with each other in an atmosphere of freedom
and mutual respect, disrupt industrial peace and hinder the promotion of healthy and
stable labor-management relations (Art. 247 of the Labor Code).

Unfair labor practice is motivated by ill will, bad faith, or fraud, or oppressive to labor, or
done in a manner contrary to morals, good customs, or public policy, and, of course,
that social humiliation, wounded feelings or grave anxiety resulted.47

61. What are the aspects of Unfair Labor Practice?

The aspects of Unfair Labor Practice are the civil aspect and criminal aspect
(Labor Relations and Law on Dismissal with Notes and Comments, Volume II,
Salvador A. Poquiz, page 258).

62. What is a company union?

Company union is a labor organization whose formation, function or administration has

been assisted by any act defined as unfair labor practice. Article 259 (d) of the Labor
Code is provided in order to prevent the formation of these so-called company unions.
The said provision states that it shall be considered as unfair labor practice if the
employer initiate, dominate, assist or otherwise interfere with the formation or
administration of any labor organization, including the giving of financial or other support
to it or its organizers or officers.

63. What is a yellow dog contract?

A yellow dog contract is another unfair labor practice which can be committed by an
employer when it requires as a condition of employment that a person or an employee
shall not join a labor organization or shall withdraw from one to which he belongs (Art.
259 (b) of the Labor Code). It implies that a person who signed such contract was a
cowardly dog because he had abandoned his guaranteed Constitutional rights to self-
organization (Labor Relations and Law on Dismissal with Notes and Comments,
Volume II, Salvador A. Poquiz, page 220).

46
Art. 258 of the Labor Code; Culii vs. ETPI, G.R. No. 165381, February 9, 2011
47
Tunay na Pagkakaisa ng Manggagawa sa Asia Brewery vs. Asia Brewery, Inc., G.R. No. 162025, August 3, 2010
64. Can a union demand for moral damages?

Moral damages are awarded only in a case of illegal dismissal, wherein the discharge
was attended by bad faith or fraud, or constituted an act oppressive to labor, or was
done in a manner contrary to morals, good customs or public policy.48

65. Who has jurisdiction over Unfair Labor Practice for violation of CBA?

Bureau of Labor Relations is divested with the jurisdiction over unfair labor practice for
gross violation of CBA. However, the correlations of Article 248 (1) and Article 261 of
the Labor Code shows that the unfair labor practice shall only be cognizable by the
Labor Arbiter and the NLRC to exercise its appellate jurisdiction if there is a
concurrence of gross violation of the CBA and that the violation pertains to its economic
provision.49

66. What is Grievance Machinery?

Grievance Machinery pertains to the mechanism for the adjustment and resolution of
grievances arising from the interpretation or implementation of a CBA and those arising
from the interpretation or enforcement of company personnel policies. It is part of the
continuing process of collective bargaining (Art. 260 of the Labor Code).

67. What are the requisites before the Voluntary Arbitrators take cognizance of
a dispute?

Under Article 273 of the Labor Code, the requisites before the Voluntary Arbitrators
takes cognizance of a dispute are:

a. There must be an established grievance machinery; and

b. All prior procedures in the grievance machinery must be first exhausted.

If the grievance is not settled seven (7) days from the date of submission, it shall
automatically refer to voluntary arbitration as prescribed in the CBA.

68. How do you distinguish the Jurisdiction of the Labor Arbiter from that of
Voluntary Arbitrators?

The Labor Code as set forth in Articles 224, 274, and 275 clearly defines and delineates
the jurisdiction of Labor Arbiters and Voluntary Arbitrators or Panels of Voluntary

48
Culili vs. ETPI, G.R. No. 165381, February 9, 2011
49
Employees Union of Bayer vs Bayer Phils. G.R. No. 162943, December 6, 2010
Arbitrators. Article 224 enumerates the cases wherein the Labor Arbiters have original
and exclusive jurisdiction, while Article 274 provides for the original and exclusive
jurisdiction of the Voluntary Arbitrators or Panel of Voluntary Arbitration.

On the other hand, Article 275 provides that the voluntary arbitrator or panel of voluntary
arbitrators shall have the jurisdiction to all other labor disputes including unfair labor
practices and bargaining deadlocks. This jurisdiction must be voluntarily conferred upon
by both the labor and management including all those disputes mentioned in Article 224
over which the Labor Arbiter has the original and exclusive jurisdiction.

In money claim cases, the original and exclusive jurisdiction of the Labor Arbiter is
limited only to those arising from statutes or contracts other than a CBA (Art. 224 (c) of
the Labor Code). The Voluntary Arbitrators or Panel of Arbitrators has original and
exclusive jurisdiction over money claims which arises from interpretation or
implementation of the CBA and those arising from the interpretation or enforcement of
company personnel policies (Art. 274 of the Labor Code).

69. Can Voluntary Arbitrators assume jurisdiction over termination disputes of

an employee?

Generally, termination disputes are under the original and exclusive jurisdiction of Labor
Arbiters (Art. 224 (a.2) of the Labor Code). Voluntary Arbitrators can assume jurisdiction
over termination disputes of an employee arising from the interpretation and
implementation of CBA and company personnel policies if agreed in unequivocal
language by the parties (Art. 224 of the Labor Code).

70. What is the jurisdiction of the Voluntary Arbitrators?

Voluntary Arbitrators or Panel of Arbitrations shall have original and exclusive

jurisdiction to hear and decide all unresolved grievances arising from the interpretation
or implementation of the Collective Bargaining Agreement and those arising from the
interpretation or enforcement of company personnel policies (Article 274 of the Civil
Code).

Voluntary Arbitrator or Panel of Voluntary Arbitrators shall also have jurisdiction over
other labor disputes including unfair labor practices and bargaining deadlocks upon
agreement of the parties (Art. 275 of the Labor Code).

71. What is the remedy from the Decision of the Voluntary Arbitrators?

The proper remedy to reverse or modify a Voluntary Arbitrator’s or a panel of Voluntary

Arbitrators’ decision or award is to appeal the award or decision before the Court of
Appeals (Section 1 & 2 of Rule 43 of Rules of Court).