PART I INTRODUCTORY MATERIALS Section 1. Introduction 1.

1 Statutory Source and Interpretation Statutory provisions of the Labor Code are construed liberally in favor or EEs, unless otherwise intended by or patent from the language of the statute itself. (Caltex Filipino Managers and Supervisors Assistant vs. CIR) 1.2 De inition! ER and EE Art. 212 " An ER ! Any person acting in the interest of the E", directly or indirectly. #he term shall not include any labor organi$ation or any of its officers e%cept when acting as an E". EE ! Any person in the employ of an E". #he term shall not be limited to the EEs of a particular E", unless this Code e%plicitly states. &t shall include any individual whose wor' has ceased as a result or in connection with any current labor dispute or because of fair labor practice if he has not obtained any other substantially e(uivalent or regular employment. Labor Organization and Legitimate Labor Organization 1. Art. 212 " Labor Organization ! Any union for association of EEs which e%ists for the purpose of collective bargaining or of dealing with Es concerning terms and conditions of employment. Legitimate Labor Organization ! Any labor organi$ation duly registered with the )*LE that includes any branch or local. 2. A local chapter becomes a legitimate labor organization only upon submission of: A. Charter certificate within +, days from its issuance by the laborfederation or national union. B. Constitution and by-laws, statement on set of officers, and boo's of accounts which are certified under oath by secretary or treasurer, and attended to by its president. (Phoenix Iron vs. Secretary of Labor and !ploy!ent) Labor Dispute

2 .. Art. 212 / Any controversy or matter concerning terms and conditions of employment or the association or representation of persons in negotiating, fi%ing, maintaining, changing or arranging terms and conditions of employment, regardless of whether the disputants stand in the pro%imate relation of E" and EE. 0. 1hat is the test to determine whether a labor controversy comes within the definition of labor dispute2 &t depends on whether it involves or concerns terms, conditions of employment or representation. (A"ucena) 1.# La$or Re%ation! Po%icy .. What is the policy of the state ith respect to the trade unionism! collecti"e bargaining and labor relations# &t is the policy of the State to / A. 3romote and emphasi$e the primacy of free Collective bargaining and negotiations, including voluntary arbitration, mediation and conciliation, as modes of settling labor and industrial disputes. 4. 3romote free trade unionism as an instrument for the enhancement of democracy and the promotion of social 5ustice and development. C. 3romote the Enlightenment of wor'ers concerning their rights and obligations as union members and as EEs. ). #o provide an ade(uate administrative 6achinery for the e%peditious settlement of labor or industrial peace. E. #o ensure a stable but dynamic and 5ust &ndustrial peace. 7. #o ensure the participation of 1or'ers in )ecision and policy-ma'ing processes affecting their rights, duties and welfare. G. #o encourage free trade 8nionism and free collective bargaining. #Art. $%&' Co%%ecti&e $ar'ainin' ! 9egotiations towards a collective agreement designed to stabili$e the relation between labor and management and to create a climate of sound and stable industrial peace. ((io) Loy vs. *LRC) #he Secretary of Labor shall have the power and duty to in(uire into aspects of E"-EE relations concerning the promotion of harmony and understanding between the parties. #Art. $+&' A line must be drawn between policies which are purely business-oriented and those which affect the rights of EEs. 1or'ers and E"s shall, as far as practicable, be represented in decision and policy-ma'ing bodies of the government. #he Secretary of Labor and Employment or his duly authori$ed representatives may call a tripartite conference of representatives of government, wor'ers and EEs for the consideration and adoption of voluntary codes of principles designed to promote industrial peace or to align labor movement relations with established priorities in economic and social development. #Art. $+,' #M vs. C-PI.'

3 Section 2. Ri'(t to Se% )Or'ani*ation 2.1 Con!titutiona% +a!i! o Ri'(t .. Art. III, Sec. -, Con!t. / #he right of the people, including those employed in the public or private sectors, to form unions, associations, or societies for purposes not contrary to law shall not be abridged. 0. Art. .III, Sec. #, Con!t. / #he State shall guarantee the rights of all wor'ers to self-organi$ation, collective bargaining and negotiations, and peaceful concerted activities including the right to stri'e in accordance with law. 2.2 Co&era'e I. Art. 2/# " Co&era'e and EE0! ri'(t to !e% )or'ani*ation 1 .. All persons employed in commercial, industrial and agricultural enterprises and in religious, charitable, medical, or educational institutions --- whether operating for profit or not, shall have the right to self-organi$ation and to form, 5oin or assist labor organi$ations of their own choosing for purposes of collective bargaining. 0. Ambulant, intermittent and itinerant wor'ers, self-employed people, rural wor'ers and those without definite E"s may form labor organi$ations for their mutual aid and protection. II. Art. 2// " Ri'(t! o EE0! in t(e pu$%ic !er&ice ! .. EEs of government corporations established under the Corporation Code shall have the right to organi$e and bargain collectively with their respective E"s. 0. All other EEs in the civil service shall have the right to form associations for the purposes not contrary to law. III. Art. 2/2 " .. $anagerial EE%s are not eligible to 5oin, assist, or form any labor organi$ation. 0. &uper"isory EE%s shall not be eligible for membership in a labor organi$ation of the ran'-and-file EEs but may 5oin, assist or form separate labor organi$ations of their own. 2.# E3tent and Scope o Ri'(t &. Art. 2/4 " Non)a$rid'e5ent o ri'(t to !e% )or'ani*ation ! &t shall be unlawful for any person to / .. "estrain 0. Coerce +. )iscriminate against or :. 8nduly interfere with EEs and the wor'ers in their e%ercise of the right to selforgani$ation &&. #he right to self-organi$ation includes the right not to form or 5oin a union #Reyes vs. /re0ano' ;owever, by virtue of the operation or enforcement of a closed shop clause in a C4A, an E" may be compelled on pain of dismissal, to become a member of a labor union. #Alcantara' III. 6ay an E" impose as condition for employment that the applicant shall not 5oin a labor organi$ation or shall withdraw from the one he belongs to2

4 9o. Such a condition parta'es of the nature of a yellow dog contract and constitutes an unfair labor practice. &t is interference with the individuals right to self-organi$ation. #Alcantara' 2./ 6or7er! 8it( Ri'(t to Se% )Or'ani*ation or Purpo!e! o Co%%ecti&e +ar'ainin' All EE%s .. Art. 2/# / All persons employed in commercial, industrial and agricultural enterprises and in religious, charitable, medical, or educational institutions whether operating for profit or not, shall have the right to self-organi$ation and to form, 5oin or assist labor organi$ations of their own choosing for purposes of collective bargaining. 0. #he 6acho hair Saloon refused to bargain with the union of the barbershop composed of < barbers on the ground that the shop was a service establishment and the number of the barbers was less than .,. &s the contention tenable2 9o. #he law does not fi% the minimum number of EEs for the e%ercise of the right to self-organi$ation and the right e%tends to all types of establishments. #Alcantara' +. #he faculty members of a non-profit school converted their club into a labor union. &s this allowed2 =es. Even EEs in non-profit or religious organi$ations are entitled to e%ercise this right. #Alcantara' A. RELI9ION #he right of the members of the &glesia ni >risto sect not to 5oin a labor union for being contrary to their religious beliefs does not bar the members of that sect from forming their own union. #(apatiran vs. Calle0a' 'o"ernment (orporation EE%s Art. 2// " Ri'(t! o EE0! in t(e pu$%ic !er&ice ! EEs of government corporations under the Corporation Code shall have the right to organi$e and bargain collectively with their respective E"s. &uper"isors .. Art. 2/2 / Supervisory EEs shall not be eligible for membership in a labor organi$ation of the ran'-and-file EEs but may 5oin, assist or form separate labor organi$ations of their own. ?&uper"isory EE%s@ ! #hose, who, in the interest of the E", effectively recommend such managerial actions if in the e%ercise of such authority is not merely routinary or clerical in nature but re(uires the use of independent 5udgment. A Art. 212B #he criterion which determines whether a particular EE is within the definition of a statute is the character of the wor' performed rather than the title or nomenclature of position held. #*SRC vs. *LRC' +. &f the recommendation of the teacher area supervisor is sub5ect to evaluation, review and final approval of the principal, is the teacher a supervisory EE2 9o. #his is merely ineffective or clerical recommendation. (Laguna Colleges vs. CIR)

5 :. Supervisors were given the 5ob of either to assist the foreman if the effective dispatch of manpower and e(uipment or e%ecute and coordinate wor' plans emanating from his supervisors. Are these supervisors supervisory personnel2 9o. #hey only e%ecute approved and established policies leaving little or no discretion at all whether to implement the said policies or not. #Southern Philippines Federation vs. Calle0a' A. RI9:T TO OR9ANI;E and LIMITATION 1. A supervisory union cannot represent the professionalCtechnical and confidential EEs whose positions are more of the ran' and file than supervisory. #he professionalCtechnical EEs may 5oin the e%isting ran' and file union, or form a union separate and distinct from the e%isting union organi$ed by the ran' and file EEs. #he intent of the law is to avoid a situation where supervisors would merge with the ran' and file, or where the supervisors labor organi$ation would represent conflicting interests. #Philippine Phosphate vs. /orres' 0. #he union of supervisory personnel affiliated with a national federation. #he local union of ran' and file was also affiliated with the said national federation. &s this allowed2 9o. A local supervisors union should not be allowed to affiliate with a national federation of union of ran' and file EEs. Supervisors should be given an occasion to bargain together with the ran' and file against the interests of the E" regarding terms and conditions of employment. #Atlas Litographic vs. Lagues!a'

Aliens Art. 24< / Aliens wor'ing in the country with valid permits issued by the )*LE, may e%ercise the right of self-organi$ation and 5oin or assist labor organi$ations of their own choosing for purposes of collective bargaining, provided, that said aliens are nationals of a country which grants the same or similar rights to 7ilipino wor'ers. &ecurity 'uards Security guards may 5oin ran' and file or supervisors union depending on their ran'. #M RALC1 vs. Secretary of Labor and !ploy!ent' 2.2 6or7er! 8it( no Ri'(t o Se% )or'ani*ation $anagerial and (onfidential EE%s .. Art. 2/2 / 6anagerial EEs are not eligible to 5oin, assist, or from any labor organi$ation. ?$anagerial EE%s ! #hose whose primary duty consists of the management of the establishment of which they are employed or of a department or subdivision thereof, and to other officers and members of the managerial staff. A Art. -2B@ 2. #he nature of the 5ob determines whether the EEs fall under the definition of managerial . A managerial EE is one who is vested with powers of prerogatives to lay down and e%ecute management policies andCor hire, transfer, suspend, lay-off, recall discharge, assign or discipline EEs or to effectively recommend such managerial actions. #SPFL vs. Calle0a' #he rationale for this is

6 that the union is not assured the loyalty of managerial EEs in view of evident conflict of interests or that the union can become company-dominated with the presence of managerial EEs in the membership. #2olden Far!s vs. Calle0a' 3. Confidential EEs are also prohibited from forming unions. #Pier3 Arrastre vs. Confesor' ;aving access to confidential information, they may become a source of undue advantage. #hey may act as spies of either party to a C4A. #hese include accounting personnel, radio and telephone operators and confidential secretaries. #2olden Far!s vs. Calle0a' :. #he ma5or patrons duties include ta'ing complete charge and command of the ship and performing the responsibilities of the ship captainD the minor patron also commands the vessel, plying the limits of island waterway, ports and estuaries. Are they eligible to 5oin or form a union2 9o. #he e%ercise of discretion and 5udgment in directing a ships course is managerial in nature. #Association of Marine 1fficers vs. Lagues!a'

Wor)er*$ember of (ooperati"e #he right to forming or 5oining a labor organi$ation for purposes of collective bargaining is not available to an EE of a cooperative who at the same time is a member and coowner thereof. &t is the fact of ownership of the cooperative and not the involvement in the management thereof, which dis(ualifies a member from 5oining any labor organi$ation within the cooperative with respect however, to EEs who are neither members or co-owners, they are entitled to the rights of self-organi$ation for purposes of collective bargaining #4enguet lectric vs. Ferrer5Calle0a'. ;owever, a memberCowner has the right to withdraw as owner of the cooperative for purposes of 5oining the union #Central *egros lectric vs. 1f .1L '. +on,EE%s Art. 2/# / Ambulant, intermittent and itinerant wor'ers, self-employed people, rural wor'ers and those without definite E"s may form labor organi$ations for their mutual aid and protection. ;owever, they are not entitled to the constitutional right to 5oin or form a labor organi$ation for purposes of collective bargaining. #Singer vs. .rilon' 2.4 Part Protected &t is well-settled doctrine that the benefits of a C4A e%tend to the laborers and EEs in the collective bargaining unit, including those who do not belong to the chosen bargaining labor organi$ation. #M6- vs. Aboiti"' 2.= Sanction! or >io%ation o Ri'(t .. Art. 2/- / &t shall be unlawful for an E" to interfere with, restrain or coerce EEs in the e%ercise of their right to self-organi$ation. 0. Art. 2/< / &t shall be unfair labor practice for a labor organi$ation, its officers, agents and representatives to restrain or coerce EEs in the e%ercise of their rights to self-organi$ation. +. Art. 2-- / -enalty ! 7ine of not %e!! t(an P1,???.?? nor 5ore t(an P1?,???.?? I5pri!on5ent o not %e!! t(an # 5ont(! nor 5ore t(an # year! , or

7 +ot(, at the discretion of the court. &n addition to such penalty, any alien found guilty shall be summarily deported upon completion of service. Any provision of the law to the contrary notwithstanding any criminal offense punished under this Code shall be under the concurrent 5urisdiction of the 6unicipal or City Courts and the "#C. :. Art. 2-< / &f the offense is committed by a corporation, trust, firm, partnership, association or any other entity, the penalty shall be imposed upon the guilty officer or officers of such corporation, trust, firm, partnership, association or entity. Section #. La$or Or'ani*ation #.1 Po%icy Sec. 211 / &t is a policy of the State to / .. 3romote free trade unionism as an instrument for the enhancement of democracy and the promotion of social 5ustice and development. 0. 7oster the free and voluntary organi$ation of a strong and united labor movement. #.2 La$or Or'ani*ation ) Union! Definitions A. LA+OR OR9ANI;ATION Art. 212 / Any union or association of EEs which e%ist for the purpose of collective bargaining or of dealing with E"s concerning terms and conditions of employment. +. LOCAL UNION Sec. 1, Ru%e I, +oo7 >, IRR0! / Any labor organi$ation operating at the enterprise level. C. NATIONAL UNION @EDERATION Sec. 1, Ru%e I, IRR0! / Any labor organi$ation with at least ., locals or chapters each of which must be duly recogni$ed bargaining agent. D. LE9ITIMATE LA+OR OR9ANI;ATION Art. 212 / Any labor organi$ation duly registered with the )*LE, and includes any branch or local thereof. D.1 Do%e Re'i!tration +a!i! A labor organi$ation ac(uires legitimacy only upon registration with the )*LE. #Progressive .evelop!ent vs. Secretary of Labor and !ploy!ent' A SEC registration cannot suffice. #Cebu Sea!en7s Association vs. Ferrer5Calle0a' E. COMPANY UNION Art. 212 / Any labor organi$ation whose information, function or administration has been assisted by any act defined as 8L3 by this Code.

#.# Union Rationa%e 6(en i! a %a$or or'ani*ation 8(o%e!o5e 2 A labor organi$ation is wholesome if it serves its legitimate purpose of promoting the interests of labor without unnecessary labor disputes. #hat is why it is given personality and recognition in concluding C4As. but if it is made use as a subterfuge, or as a means to subvert valid commitments, it defeats its own purpose, for it tends to undermine the harmonious relations between management and labor. #-nited Sea!en7s -nion vs. .avao Shipo8ners Association' #./ La$or Union and 9o&ern5ent Re'u%ation -nion Registration and Procedure Re9uire!ents 6(at are t(e reAuire5ent! or re'i!tration o a %a$or or'ani*ationB Art. 2#/ / Any applicant labor organi$ation shall ac(uire legal personality and shall be entitled to rights and privileges of legitimate labor organi$ations upon issuance of a certificate of registration upon submission of the following re(uirements/ A. "egistration 7ee 4. 9ames of its officers, addresses, principal address of the organi$ation, minutes of meetings and list of wor'ers who participated in meetings. C. 9ames of all its members comprising at least 0,E of all its EE s in the bargaining unit. ). Copies of annual financial reports if union has been in e%istence for more than . year. E. Copies of constitution and by-laws. Sec. #, Ru%e II, +oo7 >, IRR0! / Sworn statement by applicant union that there is no certified bargaining agent in bargaining unit concerned. 1hen there is an e%isting C4A duly submitted to the )*LE, a sworn statement that the application for registration was filed during the last F, days of the agreement. #he application and all accompanying documents shall be verified under oath by the secretary or the treasurer as the case may be, and attested to by the president. A&d.B II. 6(at are t(e additiona% reAuire5ent! or ederation! or nationa% union!B A. 3roof of affiliation of at least ., local chapters. Each of which must be a duly recogni$ed collective bargaining agent in the establishment or industry in which it operates. +. 9ames and addresses of the companies where the locals or the chapters operate and list of all the members in each company involved. III. 6(at i! t(e period or action on app%icationB +, days from filing #Art. $&,' A. RECUIREMENT AND RATIONALE "egistration is a condition sine .ua non for the ac(uisition of legal personality by a labor organi$ation. #Protection /echnology vs. Secretary of Labor and !ploy!ent' ;owever, it is not a limitation on the right of assembly or association which may be e%ercised with or without said registration. #PAFL- vs. Sec. of Labor' #he statutory and regulatory provisions of defining the re(uirements of legitimate labor organi$ations are an e%ercise of the overriding police power of the State designed for the protection of wor'ers against potential abuses by unions that recruit them. #Protection /echnology vs.

9 Sec. of Labor' or fly-by-night unions whose sole purpose is to control union for dubious ends. #Phoenix Iron vs. Sec. of Labor and !ploy!ent' Action or Denial of Application! and Remedy .. Sec. 4, Ru%e II, +oo7 >, IRR0! / Any applicant union may appeal to the 4ureau the denial of registration by the "egional *ffice, or to the secretary if the denial is by the 4ureau, within ., calendar days from receipt of such decision on grounds of / A. grave abuse of discretion D and +. gross incompetence #he appeal shall be filed in the "egional *fficeC4ureau which shall cause the transmittal of records to the 4ureauCSecretary within G calendar days from receipt of the appeal. #he 4ureauCSecretary shall decide the appeal within 0, calendar days from receipt of the records of the case. 0. Can the "egional *fficeC4ureau e%ercise discretion in the registration of the applicant union2 9o. As long as the applicant union complies with all the legal re(uirements for registration, it becomes the *fficesC4ureaus ministerial duty to do register the union. #:assar vs. strella' Effects on /reedom of Association 1hile disaffiliation from a labor union is not open to legal ob5ection, since it is implicit in the freedom of association ordained in the Constitution, a closed shop agreement is a valid form of union security and is not a restriction of the right of freedom of association guaranteed by the Constitution. Ri'(t! o Le'iti5ate La$or Or'ani*ation DRE@OSA@E I. 6(at are t(e ri'(t! o %e'iti5ate %a$or or'ani*ation 2 A. Act as "epresentative of its members in collective bargaining +. #o be certified as the E%clusive representative of all the EEs in an appropriate collective bargaining unit for purposes of collective bargaining. C. #o be furnished by the E", upon written re(uest, with its annual audited financial statements, including the balance sheet and the profit and loss statement, within +, calendar days from the date of receipt of re(uest After the union has been duly recogni$ed by the E" or certified as the sole and e%clusive bargaining representative of the EEs in the bargaining unit, or 1ithin F, calendar days before the e%piration of the e%isting C4A, or )uring the collective bargaining negotiation. D. #o own property for the use and benefits of the labor organi$ation and its members. E. #o sue and be sued in its registered name. @. #o underta'e all other Activities designed to benefit the organi$ation and its members.

10 H. &ts income and properties which are directly and e%clusively used for their lawful purposes, shall be free from ta%es, duties and other assessments. #he e%emptions provided herein may be withdrawn only be a special law e%pressly repealing this provision. A"E7*SA7B II. Can t(e union e ect a co5pro5i!e o t(e 5oney c%ai5! o 8or7er!B 6oney claims due to laborers cannot be the ob5ect of settlement or compromise effected by a union or counsel without the specific individual consent of each laborer concerned. #(aisahan ng !ga Manggaga8a sa La Ca!pana vs. Sar!iento' III. 6ay a union waive a right of union members to reinstatement provided for in an 9L"C decision2 9o, the waiver of reinstatement, must be regarded as a personal right which must be e%ercised personally by wor'ers themselves. (;ag vs. *LRC) A. E@@ECT O@ NON)RE9ISTRATION 8nion, must comply with all the re(uirements of registration as a legitimate labor organi$ation. #Protection /echnology vs. Sec. of Labor < !ploy!ent'. ;owever, if the union has filed application for registration and has submitted all the legal re(uirements, the fact that it does not yet have the certificate of registration will not annul the designation of the labor union as sole bargaining agent by the virtue of a certification election since the defect is not fatal. #- Auto!otive 7s vs. *oriel' (ancellation of the 0nion (ertificate Registration I. 6(at are t(e 'round! or it! cance%%ation o union re'i!tration $y t(e +ureauB .. 6isrepresentation, false statement or fraud by the union with respect to the re(uired documents submitted to the 4ureau. 0. 7ailure to submit the documents within +, days from adoption or ratification of the constitution and by-laws or amendments thereto. 3. 6isrepresentation, false statements or fraud in connection with the election of officers, minutes of the elections and list of voters of failure to submit these documents within +, days from election ?or from the occurrence of any change in the list of officers of the labor organi$ation #Art. $=>'@. :. 7ailure to submit annual financial report within +, days after closing of fiscal year and misrepresentation of fraud in the preparation of the financial report. G. Acting as labor contractor of cabo system. F. Entering into C4As which provide terms and conditions of employment below minimum standards. I. As'ing for or accepting attorneys fees or negotiation fees from E"s. <. *ther than for mandatory activities under this Code, Chec'ing of special assessment or other fees without duly signed individual written authori$ation of members. 9. 7ailure to submit list of individual members once a year or when re(uired #MAC . MALL'

11 II. &f a union declares an illegal stri'e, is this a good ground for cancellation of union registration2 9o. 1hile Art .0+J provides the phrase acting as a labor contractorK or otherwise engaging in any activity prohibited by law, this phrase refers to an activity parta'ing the nature of a labor contractor. #hus, an illegal stri'e is not one of the grounds for cancellation of registration. #Itogon5Sayoc vs Sangilo5Itogin 6or)er7s -nion' #.2 Internationa% Acti&itie! o Union Pro(i$ition and Re'u%ation I. 6(at acti&itie! $y a%ien! are pro(i$itedB All aliens, whether natural or 5uridical are strictly prohibited from engaging directly or indirectly in all forms of trade, union activities without pre5udice to normal contacts between 3hilippine labor unions and recogni$ed international labor centers. #he prohibition does not apply to the formation of labor organi$ations by aliens wor'ing in the country with valid wor'ing permits. AArt. 0FJB 1rade 0nion Acti"ities ! shall mean / organi$ation formation and administration of labor organi$ationsD negotiation and administration of C4AsD all forms of concerted union actionD organi$ing, managing or assisting union actionD any form of participation or involvement in representation proceedings, representation elections, union electionsD and 6. other analogous activities. #Art. $+?'@ .. 0. +. :. G. II. 6(at acti&itie! $y a%ien! are re'u%atedB 9o foreign individual, organi$ation or entity may give any form of assistance, in cash or in 'ind directly or indirectly, to any labor organi$ation, group of wor'ers or any au%iliary thereof, such as cooperatives, credit unions and institutions engaged in research, education or communication, in relation to trade union activities, without prior permission by the Sec. of Labor #his prohibition also applies to foreign donations or other forms of assistance, in cash or in 'ind, given directly or indirectly to any E" or E"s organi$ation to support any activity or activities affecting trade unions. III. #he stri'e declared by 8nion 6 has reached its F, th day. #a'ing pity on the hungry and sic' stri'ers, 4 and H, 7rench missionaries, distributed food and drin's to the stri'ers. ;as any one committed any illegal act2 =es. 4 and H, distributing food and drin's to the stri'ers violated the prohibition against aliens from engaging directly or indirectly in all forms of trade union activities. #he term trade union activities includes all forms of concerted union actions and analogous activities. #Alcantara' #.4 Union)Me5$er Re%ation! +ature of Relationship #he union may be considered but the agent of its members for the purpose of securing for them fair and 5ust wages and good wor'ing conditions and is sub5ect to the obligation of giving the members as its principals all information relevant to union and labor matters entrusted to it. #@eirs of Cru" vs. CIR' Rights of 0nion $embers

12 Su55ari*e t(e $a!ic ri'(t! o union 5e5$er! " .. Po%itica% ri'(t ! 6embers right to vote and be voted for, sub5ect to lawful provisions on (ualifications and dis(ualifications. 0. De%i$erati&e and deci!ion)5a7in' ri'(t ! 6embers right to participate in deliberations on ma5or policy (uestions and decide them by secret ballot. +. Ri'(t o&er 5oney 5atter ! 6embers right against e%cessive fees, right against unauthori$ed collection of contributions or unauthori$ed disbursementsD the right to re(uire ade(uate records of income and e%penses and the right of access to financial recordsD the right to vote on proposed special assessments and be deducted a special assessment only with the members written authori$ation. :. Ri'(t to in or5ation ! 6embers right to be informed about the organi$ations constitution and by-laws and the C4A and about labor laws. 2ssues A. ADMISION AND DISCIPLINE O@ MEM+ERS .. Art. 2/< / A labor organi$ation shall have the right to prescribe its own rules and with respect to the ac(uisition or retention of membership. 0. Art. 2== / Any EE, whether employed for a definite period or not, shall, beginning on his .st day of service, be considered an EE for purposes of membership in any labor union. A. 1. Ad5i!!ion 1. Labor unions are not entitled to arbitrarily e%clude (ualified applicants for membership, and a closed-up provision would not 5ustify the E" in discharging, or a union in insisting upon the discharge of it, an EE whom the union refuses to admit to membership, without any reasonable ground therefor. #hus, while generally the State may not compel the union to admit the individual as a member, this scenario is not an e%ception to that general rule. #Salunga vs. CIR' 0. #he unions constitution and by-laws provides that no individual who previously belonged to another union may be admitted as member thereof. &s this provision valid2 9o. 1hile a union is in general free to select its own members, it cannot impose arbitrary and discriminatory conditions for admission to membership. &t is very clear that the provision discriminates against an individual for having e%ercised his right to self-organi$ation. #Alcantara' +. #he union constitution and by-laws provides that only EEs with 0 years service in the company are eligible for membership therein. &s the provision valid2 9o. #he provision is an unreasonable restriction on the wor'ers e%ercise of his right to self-organi$ation. &t would have those who have less than 0 years of service without representation in bargaining with the E". #Alcantara' A. 2 Due Proce!! Ru%e! 1. An officer or a member of a labor union is entitled to due process before he can be e%pelled. #he member of the labor union may be e%pelled only for a valid cause and by following the procedure outlined in the constitution and by-laws of the union. #(apisanan ng !ga Mangaga8a vs. 4ugay'

13 0. #he union constitution and by-laws provides that a member may be e%pelled from the union upon a vote of 0C+ of all the members. &s the rule valid2 9o. #he e%pulsion of a union member cannot be made to depend upon the whims and caprices of cp-members. &t must be founded on some 5ust and serious grounds. #Alcantara' +. G regular EEs were dismissed allegedly pursuant to a union security clause. #hey had previously been e%pelled from the union for attempting to oust the union leadership, but they were not given an opportunity to e%plain their side. #he company also did not conduct an investigation into the matter. &s the dismissal of the EEs lawful2 9o. #he union should have given them an opportunity to e%plain their side before e%pelling them. And the company should have complied with procedural due process before dismissing them. #Ferrer vs. *LRC' +. ELECTION O@@ICERS 1 CUALI@ICATION, TENURE AND COMPENSATION 9i&e t(e ru%e! o t(e La$or Code 'o&ernin' union o icer! " .. #he 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 G years. 9o (ualification re(uirements for candidacy to any position shall be imposed other than membership in good standing. 9o person who has been convicted of a crime involving moral turpitude shall be eligible for election or appointment as a union officer. ? $oral turpitude ! Act of baseness, vileness or depravity in the private of social duties which a men owes to his fellowmen, or to society in general. #/a) vs. Republic' #he officers of any labor organi$ation shall not be paid by compensation other than the salaries and e%penses due their positions as specifically provided in the constitution and by-laws, or in a written resolution duly authori$ed by the ma5ority of all the members at a general membership meeting duly called fort he purpose. o Any irregularity in the approval of the resolution shall be a ground for impeachment or e%pulsion from the organi$ation. (Art. 241) +.1 >oter! Li!t Submission of the EEs names with the 4L" as (ualified members of the union not a condition sine qua non to enable said members to vote in the election of union officers. Luestion of eligibility to vote may be determined through the use of applicable payroll period and EEs status. #/ancinco vs. Ferrer5Calle0a' +.2 Di!Aua%i ication o Candidate! )is(ualification of winning candidates will not automatically result in the assumption of office of those who garnered the second highest number of votes. #Manalad vs. /ra0ano' +.# E3pu%!ion Re5edy "emedy against erring union officers is not referendum but union e%pulsion. ;owever, re-election of union officers and non-election of complaining union members is convincing show of faith on union officers leadership. #(MP vs. /ra0ano'

14 +./ E%ection In&a%id 1. 7ree and honest elections are indispensable to the en5oyment of EEs and wor'ers of their right to self-organi$ation. #his right will be diluted if the election is not fairly and honestly conducted. #hus, elections for union officers attended by grave irregularities are invalid. #Rodrigue" vs. 4LR' 2. 1ill failure to comply with the technical re(uirements or formalities in relation to the election of union officers invalidate the election2 9o, as long as it does not appear that such failure resulted in the deprivation of any substantial right or prerogative of anyone or caused the perpetration of fraud or other serious anomaly, or preclude the e%pression and ascertainment of the popular will in the choice of officers. #/i!bungco vs. Castro' +.2 Cua%i ication o Union O icer! Atty. " won a big case for the union at the 8niversity of the 1est. ;e became very popular with the union members that they elected him as union president. &s this allowed2 9o. Atty. " is not an EE of the 8niversity. ;e is dis(ualified from becoming an officer of any union therein. #Alcantara' C. MAFOR POLICY MATTER .. Art. 2/1 / #he members shall determine by secret ballot, after due deliberation, any (uestion of ma5or policy affecting the entire membership of the organi$ation, unless the nature of the organi$ation or force ma5eure renders such secret ballot impractical. &n which case the board of directors of the organi$ation may ma'e the decision in behalf of the general membership. 0. M, a member of a union was surprised to 'now that the union had disaffiliated with the national federation. ;as M any ground to complain2 =es. As union member, he has the right to participate, by secret ballot, to determine any (uestion of ma5or policy affecting the entire membership. )isaffiliation is a ma5or policy issue. #Alcantara' D. UNION @UNDS 9i&e t(e ru%e! o t(e La$or Code 'o&ernin' union und! " .. #he members shall be entitled to full and detailed reports from their officers and representatives of all financial transactions. 0. 9o officer, agent or member of a labor organi$ation shall collect any fees, dues or other contributions in its behalf or ma'e any disbursement of funds unless he is duly authori$ed by the constitution and by-laws. +. Every payment of fees, dues or other contributions by a member shall be evidences by a receipt signed by the officer or member ma'ing the collection and entered into the record of the organi$ation. :. #he funds of the organi$ation shall not be applied for any purpose or ob5ect other than those e%pressly provided by its constitution and by-laws or those e%pressly authori$ed by written resolution adopted by a ma5ority of the members at a general meeting duly called for the purpose.

15 G. Every income or revenue of the organi$ation shall be evidenced by a record showing its source or by a receipt from the person to whom payment is made. F. Any action involving the funds of legitimate labor organi$ation shall prescribe after + years from date of submission of the annual financial report to the )*LE or from date the same should have been submitted, whichever comes earlier. I. #he treasurer shall render 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. #he account shall be duly audited and verified by affidavit and a copy shall be rendered by the )*LE. #he rendering of the account shall be made / a. At least once a year and within +, days after the close of its fiscal year. b. At such other times as may be re(uired by a resolution of the ma5ority of the members of the organi$ation. c. 8pon vacating his office. <. #he boo's of accounts and other financial records shall be open to inspection by any officer or member thereof during office hours. J. 9o special assessment or other e%traordinary fees may be levied upon the members of a labor organi$ation unless authori$ed by a written resolution of a ma5ority of all the membership meeting duly called for the purpose. a. #he secretary shall record the minutes of the meeting which shall be attested by the president. .,. *ther than for mandatory activities under this Code, no special assessments, attorneys fees, negotiation fees or any other e%traordinary fees may be chec'ed off from the amount due to an EE without an individual written authori$ation duly signed by the EE. ... #he Sec. of Labor or his duly authori$ed representative is hereby empowered to in(uire into the financial activities of the legitimate labor organi$ation upon filing of a complaint under oath and duly supported by a written consent of at least 0,E of the total membership to determine compliance with the law. a. Such in(uiry shall not be conducted during the F,-day freedom period within the +, days immediately preceding the date of election of the union officials. D.1 Source)Pay5ent)Attorney! @ee! 1. 3ayment of attorneys fees is an obligation of the union and not of the EEs. 6oney of EEs are not to be used to pay attorneys fees of a lawyer. #Pacific 4an) vs. Clave' 0. Atty. S was hired by a union to assist its president in negotiating a C4A. After the e%ecution of the C4A, Atty. S sought to collect his attorneys fees out of the benefits due to the EEs by virtue of the agreement. &s this proper2 9o. Atty. Ss claims for attorneys fees should be satisfied out of the funds of the union. #AL- vs. *LRC' D.2 Source)Pay5ent)Specia% A!!e!!5ent 1. 1ritten resolution of a ma5ority of all members of the union at a general membership meeting, re(uired for validity of levy of a special assessment. #Palacol vs. Ferrer5Calle0a' 0. #he law does not re(uire that disauthori$ation must be in individual form. A&d.B

16 +. #he 4oard of )irectors of a union passed a resolution assisting every union member of 30.,, to be used in the purchase of a birthday gift for the courageous lawyer of the union. #he union members refused to pay assessment. &s the refusal 5ustified2 =es. #he assessment was not authori$ed by a written resolution of a ma5ority of all the members at a general membership meeting for the purpose. :. At a general membership meeting, a ma5ority of the members of the union voted for a written resolution assessing each member 3G.,,. A member who did not vote affirmatively and did not e%ecute an individual written authori$ation refused to pay the same. &s his refusal 5ustified2 9o. ;e is bound by the resolution. ;owever, the absence of a written chec'-off authori$ation means that the assessment cannot be deducted by the E" from his wages or other amounts due him, but he is still obliged to pay the same. #Alcantara' E. MANDATORY ACTI>ITY Art. 21/ / *ther than for the mandatory activities under the Code / no special assessment, attorneys fees, negotiation fees or any other e%traordinary fees may be chec'ed off from any amount due to an EE without an individual written authori$ation duly signed by the EE. E.1 De inition 6(at i! a 5andatory acti&ityB Nudicial process of settling dispute laid down by law. #:engco vs. /ra0ano' E.2 C+A Ne'otiation 1. 3lacement of re-negotiation for a C4A under compulsory process does not ma'e it a mandatory activity as to authori$e chec'-off from EEs salary for attorneys fees without written, signed authori$ation. #2alvadores vs. /ra0ano' 0. 6ay a union collect union service fee for its appearance in labor proceeding2 =es. #his is in accordance with the liberali$ed scheme and theory of representation for labor. #RCPI vs. Sec. of Labor and !ploy!ent' @. UNION IN@ORMATION Art. 2/1 / &t shall be the duty of any labor organi$ation and its officers to inform its members on the / .. 3rovisions of its constitution and by-laws. 0. C4A +. 3revailing labor relations system and :. All their rights and obligations under e%isting labor laws. 7or this purpose, registered labor organi$ations may assess reasonable dues to finance labor relations seminars and other labor education activities. A"esponsibility of officers for dissemination of union information and for respect of the law is greater than that of the members. #*L- vs. Continental Ce!ent' Enforcement and Remedies 3 -rocedure and &anctions .. Art. 2/1 / Any violation of the above rights and conditions of membership shall be a ground for cancellation of union registration or e%pulsion of officer from

17 office, whichever is appropriate. At least +,E of all the members or any member or members especially concerned may report such violation to the 4ureau. Criminal and civil liabilities arising from violations of above rights and conditions of membership shall continue to be under the 5urisdiction of ordinary courts. 2. 6(en i! t(e #?G reAuire5ent not neededB 1hen such violation directly affects only . or 0 members, then only . or 0 members would be enough to report such violation and see' redress. #(apisanan ng !ga Manggaga8a vs. 4ugay' A. FURISDICTION 1 E.:AUSTION INTERNAL REMEDIES &. &n case of intra-union disputes, redress must first be sought within the organi$ation itself in accordance with its constitution and by-laws. #:illar vs. Inciong' &&. 6(at are t(e e3ception! to t(e e3(au!tion o interna% re5edie!B .. 7utility of intra-union remedies. 0. &mproper e%pulsion procedure. +. 8ndue delay in appeal as to constitute substantial in5ustice. :. 1hen action is for damages. G. Lac' of 5urisdiction of the investigating body. F. 1hen action of administrative agency is patently illegal, arbitrary and oppressive. I. 1hen issue involves is a pure (uestion of law. <. 1here administrative agency has already pre5udged the case. 9. 1here the administrative, agency was practically given an opportunity to act on the case but did not. #A"ucena' #.= Union A i%iation, Loca% and Parent Union Re%ation! &. Sec. #, Ru%e II, +oo7 >, IRR0! / An affiliate of a labor federation or national union may be a local or an independently registered union. RULES" .. #he labor federation or national union shall issue a charter certificate which shall be submitted to the 4ureau within +, days from issuance. 0. An independently registered union shall be considered an affiliate after submission to the 4ureau of the contract or agreement of affiliation within 0, days after its e%ecution. +. All e%isting labor federations or national unions are re(uired to submit a list of their affiliates, their addresses and including the names and addresses of their respective officials. :. #he local or chapter of a labor federation or national union shall maintain a constitution and by-laws, set of officers and boo's of accounts. G. 9o person who is not an EE or wor'er of the company or establishment where an independently registered union, affiliate, local or chapter of a national federation or national union operates shall henceforth be elected or appointed as an officer of such union, affiliate, local or chapter. Affiliation4 -urpose of4 +ature of relations A. NATURE O@ RELATIONS:IP #he mother union is merely an agent of the local union. #*AFL- vs. *oriel'

18

+. E@@ECT 1 LE9AL PERSONALITY Affiliation by a duly registered local union with a national union or federation does not ma'e the local union lose its legal personality. 7urthermore, notwithstanding affiliation, the local union remains the basic unit to serve the common interest of all its members. #Ada!son vs. CIR' Local 0nion Disaffiliation A. NATURE RI9:T DISA@@ILIATION #he right of a local union to disaffiliate from its mother union is consistent with the constitutional guarantee of freedom of association. #:ol)schel Labor -nion vs. 4LR' +. RULE 1 LE9ALITY ACT ) DISA@@ILIATION #he validity of the legal union disaffiliation is to be determined on the basis of the provisions of the constitution and by-laws of the local union with respect to the process of disaffiliation. #Liberty Cotton Mills 6or)ers -nion vs. Liberty Cotton Mills' C. MINORITY DISA@@ILIATION Henerally, a labor union may disaffiliate from the mother union only during the F,-day period immediately preceding the e%piration of the C4A #/anduay vs. *LRC'. ;owever, a mere minority cannot file a petition for a union disaffiliation, even within the prescribed F,-day period before the e%piry of an e%isting C4A. #:illar vs. Inciong' D. E@@ECT O@ DISA@@ILIATION 1 SU+STITUTIONARY DOCTRINE 1hat is the !u$!titutionary doctrineB EEs cannot revo'e the validly e%ecuted C4A with their E" by the simple e%pedient of changing their bargaining agent. #*AFLvs. *oriel' #hus, the C4A continued to bind the members of the new of disaffiliated and independent union up to the C4As e%piration date. #Associated 6or)ers -nion vs. *LRC' ;owever, the substitutionary doctrine is not applicable to the personal underta'ing of the deposed union i.e. no-stri'e stipulation. #4enguet Consolidated vs. PAFL-' Section /. T(e Appropriate +ar'ainin' Unit /.1 La8 and De inition De ine t(e appropriate $ar'ainin' unit / Hroup of EEs of a given E", comprised of all or less than all of the entire body of EEs, consistent wit the e(uity to the E", indicated to be the best suited to serve the reciprocal rights and duties of the parties under the collective bargaining provisions of the law. #SMC vs. Lagues!a' 1ithin one unit there may be one or more unions, but for bargaining with the E" only one union ! the ma5ority of incumbent union ! should represent the whole bargaining unit. #A"ucena' /.2 Deter5ination o Appropriate +ar'ainin' Unit /actors 3 0nit Determination 1he fundamental factors in determining the appropriate collecti"e bargaining unit are : D6 A P EE .. 1ill of the EEs.

19 0. Affinity and unity of the EEs interest, such as substantial similarity of wor' and duties, or similarity in compensation and wor'ing conditions. +. 3rior collective bargaining history. :. Similarity of employment status, such as temporary, probationary and seasonal EE s. Among these factors, the Supreme Court has consistently ruled that the test of grouping is mutuality or commonality of interests. #he EEs sought to be represented by the collective bargaining agent must have substantial mutual interests in terms of employment and wor'ing conditions as evinced by the type of wor' they perform. #SMC vs. Lagues!a' &n this respect, the basic test of an asserted bargaining units acceptability is whether or not it is fundamentally the combination which will best assure to all the EEs the e%ercise of their collective bargaining rights. #4elyca vs. Ferrer5Calle0a' .. &n ma'ing 5udgments about community of interest in these different settings, the 4ureau of Labor and "elation will loo' to such factors as / .. Similarity in the scale and manner of determining earnings. 0. Similarity in employment benefits, hours of wor', and other terms and conditions of employment. +. Similarity in the 'inds of wor' performed. :. Similarity in the (ualifications, s'ills and training of EEs. G. 7re(uency of contact or interchange among the EEs. F. Heographic pro%imity. I. Continuity or integration of production processes. <. Common supervision and determination of labor-relations policy. ;istory of collective bargaining. 9. E%tent of union organi$ation. #A"ucena' 0. A cigar manufacturing company has I departments, namely administrative, raw leaf, cigar, cigarette, engineering and garage, dispensary and sales. 6ay the ran'-and-file in the administrative, sales and dispensary be grouped separately from the ran'-and-file of the other departments2 =es. #hey are engaged in wor' different from those performed in the other departments. #hus, they have a community of interest different from that of the other departments. #Alha!bra vs. PAFL-' +. Holden 7arm has 0 sets of EEs / monthly-paid clerical wor'ers and daily-paid agricultural wor'ers. 6ay the monthly-paid EEs constitute a separate bargaining unit2 =es. #he monthly-paid EEs have very little in common with the daily-paid EEs in terms of duties and obligations, wor'ing conditions, salary rates, and s'ills. #2olden Far!s vs. Sec. of Labor' :. 6ay the non-academic personnel of 83 be 5oined with the academic personnel2 9o. #he 0 groups do not have community or mutuality of interests. #-P vs. Ferrer5 Calle0a' 0nit &e"erance and the 'lobe Doctrine 1hat is the 9%o$e DoctrineB #he relevancy of the wishes of the EEs concerning their inclusion or e%clusion from a proposed bargaining unit is inherent in the basic right of self-organi$ation. 1hile the desire of EEs with respect to their inclusion in

20 bargaining unit is not controlling it is a factor which would be ta'en into consideration in reaching a decision. &ingle or ER 0nit is /a"ored 1. &t has been the policy of the 4ureau to encourage the information of an E" unit unless circumstances otherwise re(uire. #he proliferation of unions in an E" unit is discouraged as a matter of policy unless there are compelling reasons which would deny a certain class of EEs the right to self-organi$ation for purposes of collective bargaining. #Philtranco vs. 4LR' 0. &t is proposed in a certification election that the professors of L. College be grouped into 0 units / high school and college professor. #he proposal is based on the fact that the rules governing the 0 are different, that the set up of the 0 departments are different and that the manner of their payment is different. #his proposal is opposed on the following grounds / that the 0 departments are under the control of only . board of trusteesD that they are housed in the same buildingD that there is but . cashier and registrar for the 0 departmentsD that there are teachers who are teaching in both departmentsD that the elementary department would be left without a bargaining representativeD and that there are only .+, teachers involved in the proceedings. ;ow many bargaining units should there be2 #he facts show community of interests of the teachers in the college and high school departments. 4eside, the establishment of separate units would leave the elementary teachers without a bargaining representative. And considering that there are only .+, teachers, the division of the bargaining unit dissipate their strength for collective bargaining purposes. 7inally, the E" would be contending with 0 different unions vying for each other for better benefits to gain more members. #Laguna College vs. CIR' 1 o (ompanies ith Related 5usinesses

#wo corporations cannot be treated as a single bargaining unit even if their business are related. #.iatogon vs. 1ple' ;owever, when if in reality, the companies constitute a single business entity i.e. + corporations acting as security agencies were under the same management and had interloc'ing incorporators and officers, the veil of corporate fiction may be lifted for the purpose of allowing the EEs to form a single union and be part of a single bargaining unit. #PS:SIA vs. /orres' Section 2. Union Repre!entation " E!ta$%i!(in' Union MaHority Statu! 2.1 Pre)condition 1 ER)EE Re%ation!(ip #he duty to bargain collectively e%ists only between the E" and its EEs. 1hen there is no duty to bargain collectively, it is not proper to hold certification election in connection therewith. #PL-M vs. Co!pania vs. Mariti!a' 2.2 Met(od! o E!ta$%i!(in' MaHority Statu! Elections 3 (ertification Election 4 (onsent Election 4 and Run,Off Election De ine certi ication e%ection, con!ent e%ection, and run)o .. Certi ication E%ection ! 3rocess of determining through secret ballot, the sole and e%clusive bargaining agent of the EEs in an appropriate bargaining unit, for purposes of collective bargaining. ACertification proceedings directly involve two issuesB/ a. proper composition and constituency of the bargaining unitD and

21 b. validity of ma5ority representation claims of the asserted bargaining representative or of competitive bargaining representative. #A"ucena' 0. Con!ent E%ection ! Election voluntarily agreed upon by the parties to determine the issue of ma5ority representation of all the wor'ers in the appropriate bargaining unit. +. Run)O ! Election between the labor unions receiving the 0 highest number of voted when a certification election which provides for + or more choices results in no choice receiving a ma5ority of the valid votes cast. E%clude spoiled ballots where the total number of votes for all contending unions is at least G,E of the number of votes cast. Di!tin'ui!( con!ent e%ection ro5 certi ication e%ection / A consent election is an agreed oneD its purpose being merely to determine the issue of ma5ority representation of all the wor'ers in the appropriate collective bargaining agent of all the EEs in the appropriate bargaining unit for the purpose of collective bargaining. #6arren 6or)ers -nion vs. 4LR' -olicy A. NO DIRECT CERTI@ICATION )irect certification is no longer allowed as a method of selecting the bargaining agent. 1here a union has a filed petition for certification election, the mere fact that no opposition is made does not warrant a direct certification. #C * C1 vs. Sec. of Labor' +. E@@ECT O@ ONE UNION ONLY Certification election is the best and most appropriate means of ascertaining the will of the EEs as to their choice of an e%clusive bargaining representative. #hat there are no competing unions involved should not alter that principle, the freedom of choice of the EEs being the primordial consideration besides the fact that the EEs can still choose between union and no union . #2eorge and Peter Lines vs. AL-' C. ONE)UNION, ONE)COMPANY POLICY Hive a brief description on the one,union! one,company policy / #he proliferation of unions in an E" unit is discouraged as a matter of policy unless compelling reasons e%ist which deny a certain and distinct class of EEs the right to selforgani$ation for purposes of collective bargaining. #Pag)a)aisa ng !ga Manggaga8a sa triu!ph vs. Ferrer5Calle0a' D. RATIONALE #he holing of a certification election is based on a statutory policy that cannot be circumvented. #he wor'ers must be allowed to freely e%press their choice in a determination where everything is open to their sound 5udgment and the possibility of fraud and misrepresentation is eliminated. #Progressive develop!ent vs. Sec. of Labor' 6enue of -etition .. Sec. 1, Ru%e >, +oo7 >, IRR0! / A petition for certification election may be filed with the "egional *ffice which has 5urisdiction over the principal office of the E".

22 0. Sec. 4, Ru%e >, +oo7 >, IRR0! / 8pon receipt of the petition, the regional director shall assign the case to a 6ed-Arbiter to appropriate action. #he 6ed-Arbiter shall have 0,-wor'ign days from submission of the case for resolution within which to dismiss or grant the petition. +. &n case the place of wor' of the EEs and the principal office of the E" are located within the territorial 5urisdiction of different regional offices, may the wor'ers file the application in their place of wor'2 =es. #he word 7urisdiction as used in the provision refers to venue, and venue touches more to the convenience of the parties rather substance of the case. Since the wor'er is more economically disadvantaged, the nearest government machinery to settle a labor dispute must be placed at his immediate disposal. #Cru"vale vs. Lagues!a' 2.# Certi ication E%ection 0nion as 2nitiating -arty A. OR9ANI;ED ESTA+LIS:MENT 1. Under 8(at condition! 5ay t(e Med)Ar$iter auto5atica%%y order a certi ication e%ection $y !ecret $a%%ot in an or'ani*ed e!ta$%i!(5entB a. 3etition (uestioning the ma5ority status of the incumbent bargaining agent is filed before the )*LE within the F,-day freedom period. b. Such petition is verified. c. #he petition is supported by the written consent of at least 0GE of all EEs in the bargaining unit / AArt. 224B 0. &n case there are + or more unions contending in a certification election, what will happen if no union receives a ma5ority of the valid votes cast2 3rovided that the total number of votes of all contending unions is at least G,E of the number of votes cast ?that is, the contending unions got more votes than the vote for no union @, a run-off election will be conducted between the 0 unions with the highest number of votes. #Alcantara' +. A certification election was held between + contending unions, A, 4 and C. *f the G, eligible voters, only G,, actually cast their votes. A got 00, votes, 4 got 0:0 votes and C got +, votes, while the rest of the ballots were considered spoiled. ;ow do you determine the ma5ority vote in the certification election 2 #he ma5ority vote in the certification election is G,E plus . of the valid votes cast. Spoiled ballots are e%cluded. A&d.B A.1 De inition 6(at i! an or'ani*ed e!ta$%i!(5entB &t is a firm or company where the EE have selected an e%clusive bargaining representative or where there is a C4A duly submitted to the )*LE. #Sec. %A Rule :A 4oo) :A IRR7s' @reedo5 period 1. 6(en 5ay a petition or certi ication $e i%ed in an or'ani*ed e!ta$%i!(5entB A petition for certification election may be filed during the last F,

23 days Afreedom periodB of the C4A. Any petition filed before or after the F,-day freedom period shall be dismissed outright. #Sec. &A Rule :A 4oo) :A IRR7s' 2. I! t(e reedo5 period a ected $y any a5end5ent, e3ten!ion or rene8a% o t(e C+AB 9o. #he F,-day freedom period based on the original C4A, shall not be affected by any amendment, e%tension or renewal of the C4A for purposes of certification election. #Sec. %A Rule :A 4oo) :A IRR7s' 3. May a ne8 C+A e3ecuted $y t(e incu5$ent e3c%u!i&e $ar'ainin' repre!entati&e and t(e co5pany, and rati ied durin' t(e 4?)day reedo5 period $e con!idered a $ar to t(e certi ication e%ectionB 9o. #he representation case shall not be adversely affected by a C4A registered before or during the last F, days of a subsisting agreement or during the pendency of the representation case. #Sec. =A Rule :A 4oo) :A IRR7s' A.# @i%in' Party 1. Among the legal re(uirements before a petition for certification election may be ordered by the 6ed-Arbiter is that the petitioning union must be a legitimate labor organi$ation in good standing. #Lope" Sugar vs. Sec. of Labor' 2. May a ederation i%e !uc( a petition in $e(a% o it! c(apter or %oca%B #he mother federation may file a petition for certification as agent of the local or chapter provided both the mother federation and the local or chapter is a legitimate labor organi$ation. #Progressive .evelop!ent vs. Sec. of Labor' A./ Si'nature &eri ication &t is the )irector of Labor "elations, rather than a union that is re(uired to determine whether there has been compliance with the re(uirement that at least 0GE of all the EEs in the bargaining consented in writing to the holding of a certification election. #/oday7s (nitting vs. *oriel' A.2 Su$!tantia% Support .. 6(at percenta'e o t(e EE0! !(ou%d !upport t(e petition or certi ication e%ection in an or'ani*ed e!ta$%i!(5entB #he re(uired number is 0GE of all the EEs in the bargaining unit. 2. I! t(ere a need !i5u%taneou! !u$5i!!ion o t(e !i'nature! to'et(er 8it( t(e petition or certi ication e%ectionB 9o. #he mere filing of a petition for certification election within the freedom period is sufficient basis for the issuance of an order for holding of a certification election sub5ect to the submission of the consent signatures within a reasonable period of time. #P6-P vs. Lagues!a' 3. May a certi ication e%ection $e ca%%ed $y t(e Med)Ar$iter a%t(ou'( t(e 22G !tatutory reAuire5ent (a! not $een co5p%ied 8it(B =es. Even conceding that the statutory re(uirement of 0GE is not strictly complied with, the 6ed-Arbiter is still empowered to order that the certification election be held precisely for the purpose of ascertaining which of the contending labor organi$ations shall be the e%clusive bargaining agent. #he re(uirement then is relevant only when it becomes mandatory in conduct a certification election. #CMC vs. Lagues!a' *nce the statutory re(uirement is met, it is mandatory for the 6ed-Arbiter to conduct a certification election. #4elyca vs. Ferrer5Calle0a' &n all other instances, however, the discretion ought to be ordinarily e%ercised in favor of a petition for a certification election. #CMC vs. Lagues!a' :. #he 97S1 filed a petition for certification election. &t was contended however by another union that more than 0,E of the membership of 97S1 disaffiliated and

24 thus the union cannot meet the 0GE support re(uirement. Should the petition be dismissed2 &f there is a y reasonable doubt as to whom the EEs have chosen as their representative for the purpose of collective bargaining, the 4ureau shall order a certification election by secret ballot. #o hold otherwise would violate the liberal approach constantly followed in labor litigation. #:ICMIC1 vs. *oriel' A.4 Motion or Inter&ention 1 Support 8nder the law, the re(uisite written consent of at least 0GE of the wor'ers in the bargaining unit applies to petition for certification election only, and not to motions for intervention. #PAFL- vs. Ferrer5Calle0a' 0norganized Establishments Art. 22= / &n any establishment where there is no certified bargaining agent, a certification election shall automatically be conducted by the 6ed-Arbiter upon the filing of a petition by a legitimate labor organi$ation. A. @ILIN9 PERIOD 6(en 5ay a petition or certi ication $e i%ed in an unor'ani*ed e!ta$%i!(5entB A petition for certification election may be filed at any time. #Sec. &A Rule :A 4oo) :A IRR7s' ER as 2nitiating -arty Art. 22- / 1hen re(uested to bargain collectively, an E" may petition the 4ureau for an election. &f there is no e%isting C4A in the unit, the 4ureau shall, after hearing, order a certification election. #he certification case shall be decided within 0, wor'ing days, and the certification election shall be conducted within the 0, wor'ing days from the decision. A. ROLE ER E" has no role in certification election e%cept when as'ed to bargain collectively under the I+y!tander Ru%e.J #Philippine fruits and vegetable Industries vs. /orres' &t was a well-settled rule that E" has no standing to (uestion a certification election since it is the sole concern of the wor'ers. #P//C vs. Lagues!a' (onducting Agency .. Art. 224 / #he 4ureau of Labor "elations and the Labor "elations )ivisions in the regional offices of the )*LE shall have e%clusive and original authority to act, at their own initiative or upon re(uest of either or both parties, on all inter-union and intra-union conflicts, and all disputes, grievances or problems arising from or affecting labor-management relations in all wor'places whether agricultural or non-agricultural, e%cept those arising from the implementation or interpretation of C4As which shall be sub5ect of grievance procedure andCor voluntary arbitration. 2. #he practice of the 4oard referring certification cases to the #8C3, a private entity, is not sanctioned by the Labor Code. #PL-M vs. *oriel' +ature of -roceeding #he certification election is the most democratic and e%peditious method by which the laborers can freely determine the union that shall act as their representative in

25 their dealings with the establishment where they are wor'ing. #P6-P vs. Lagues!a' &t is not litigation in a sense. &t is a mere investigation of a non-adversary fact-finding character in which the 4L" of the )*LE plays the part of a disinterested investigator see'ing merely to ascertain the desires of the EEs as to the matter of their representative. #Airline Pilots Association vs. CIR' (ertification Election 3 -rocess and -rocedures Sec. 1, Ru%e >I, +oo7 >, IRR0! / #he "egional )ivision, shall cause the necessary posting of offices at least G wor'ing days before the actual date of election in 0 most conspicuous places in the company premises. A.1 6ai&er #he e%ecution of an agreement to waive the mandatory G days posting election notices binds the parties thereto by the doctrine of estoppel. #;ISSC1R vs. /orres' +. >OTIN9 LIST AND >OTER +.1 A%% EE0! 1. *nly EEs who are directly employed by the E" and wor'ing along the activities to which the E" is engaged and lin'ed by E"-EE relationship are (ualified to participate in the certification election irrespective of the period of their employment. # astland Manufacturing vs. *oriel' 2. Are EE0! pro(i$ited $y t(eir re%i'ion to $e 5e5$er! o a %a$or or'ani*ation $e a%%o8ed to &ote in a certi ication e%ectionB =es. #he plainly discernible intendment of the law is to grant the right to vote to all bona fide EEs in the bargaining unit, whether they are members of a labor organi$ation or not. #Reyes vs. /ra0ano' +.2 Di!5i!!ed EE0! EEs who have been improperly laid-off but who have a present, unabandoned right to the e%pectation of reemployment, are eligible to vote in certification elections. #Phil. Fruits and :egetables Industries vs. /orres' +.# Pro$ationary EE0! 3robationary EEs in the appropriate bargaining unit are entitled to vote. #Airti!e Specialists vs. .irector of Labor Relations' C. >OTIN9 DAY .. Sec. 2, Ru%e >I, +oo7 >, IRR0! / #he election shall be set during the regular business day of the company unless otherwise agreed upon by the parties. 0. 6ay a party to a certification election contend that the election was not held on a regular business day due to the occurrence of a stri'e that day2 9o. 1hile it may have affected the actual performance of wor', by some EEs, it did not necessarily ma'e said date an irregular business day of the company. #Asian .esign vs. Ferrer5Calle0a' D. PROTEST 1. 6(en !(ou%d a prote!t $e rai!edB a. *n-the-spot during the conduct of the election.

26 b. 4efore the close of proceedings with the representation officer. 3rotests not so raised are deemed waived. Such protest shall be contained in the minutes if the proceedings. ASec. #, Ru%e >I, +oo7 >, IRR0!B #he protest should be formali$ed with the 6ed-Arbiter within G days after the close of the election proceedings, otherwise the protest shall be deemed dropped. A Sec. /, Ru%e >I, +oo7 >, IRR0!B E. APPEAL Art. 22< / Any party to an election may appeal the order or results of the election as determined by the 6ed-Arbiter directly to the Sec. of Labor and Employment on the ground that the rules and regulations established by the Sec. have been violated. Such appeal shall be decided within .G calendar days. @. ANNULMENT Circumstances showing irregularities in the holding of the certification election are sufficient to invalidate the same. #Confederation of Citi"ens Labor-nion vs. *oriel' 2./ Certi ication o De!i'nated MaHority Union $a7ority 0nion Art. 222 / #he labor organi$ation designed or selected by the ma5ority of the EEs in the appropriate collective bargaining unit shall be the e%clusive representative of the EEs in such unit for the purposes of collective bargaining. 2.2 +ar! to Certi ication E%ection One year 5ar Rule 8(ertification year9 A. 9ENERAL RULE Sec. #, Ru%e >, +oo7 >, IRR0! / 9o certification election may be held within . year from the date of issuance of a final certification result. #he phrase ina% certi ication re!u%t means that there was an actual conduct of election. &n case where there was no certification election conducted precisely because the first petition was dismissed, on the ground of a defective petition, the certification year bar does not apply. #R. /ransport vs. Lagues!a' +. E.CEPTIONS A petition for certification election may be entertained where unusual circumstances e%ist. A circumstance would be unusual or out of the ordinary if it affects the structure, functions or membership of the contracting union i.e. the number of EEs in the appropriate bargaining unit has more than doubled since the last certification election. #A"ucena' Deadloc) 5ar Rule 6(at i! t(e dead%oc7 $ar ru%eB A petition for certification election can only be entertained if there is no pending bargaining deadloc' submitted to conciliation or arbitration of which has become the sub5ect of a valid notice of stri'e or loc'out. #*AS-CIP5/-CP vs. /ra0ano'

27 A. NO DEADLOCK 4argaining deadloc' presupposes reasonable effort at good faith bargaining which, despite noble intentions, does not conclude in agreement between the parties. #.ivine 6orld vs. Sec. of Labor' (ontract 5ar Rule 1. 6(at i! t(e contract $ar ru%eB #he e%istence of a C4A duly filed and submitted to the )*LE, in compliance with the re(uirements and standards of the said office bars a certification election in the collective bargaining unit e%cept within the F, days prior to the e%piration of the life of such contract. #Foa!tex Labor -nion vs. .irector of Labor Relations' 0. 9i&e t(e !tatutory reco'nition o t(e contract $ar ru%e / #he 4ureau shall not entertain any petition for certification election which may disturb the administration of duly registered e%isting C4As affecting the parties. A Art. 2#2B +. #he e%clusive bargaining union entered into a G-year C4A with the company. 4ecause of intra-union conflict the ratified C4A was only registered with the )*LE + months after it was ratified. A month later, another union filed a petition for certification election. #he petitioning union contends that the contract was registered beyond the +,-day period prescribed by Art. 0+.. &s the petition barred by the contract bar rule2 =es. 9on-compliance with the procedural re(uirements of Art. 0+. should not adversely affect the substantive validity of the C4A. A C4A is more than a contract. &t is highly impressed with public interest for it is an essential instrument to promote industrial peace. #o set it aside o technical grounds is not conducive to the public good. #/-CP vs. Lagues!a' :. Company A signed a +-year C4A with 8nion O, the duly authori$ed bargaining representative. #he C4A was never formally ratified by the EEs, although they all accepted and en5oyed the benefits under the C4A. .< months after the C4A was signed, 8nion = filed a petition for certification election. 1ill the petition of 8nion = prosper2 9o. 1hile there was no e%press ratification by the EEs, the fact that they received the benefits is an implied ratification of the C4A. #he non-submission of a copy of the C4A to the )*LE is a mere formal re(uirement which should not prevent the application of the contract bar rule. #Alcantara' A. DE@ECTI>E C+A #he contract bar rule does not apply when the C4A which is the basis of the rule is defective. #AL- vs. Ferrer5Calle0a' +. INCOMPLETE CONTRACT #o be a bar to a certification election, the C4A must be ade(uate in that it comprises substantial terms and conditions of employment. #4u)lod ng Saulog vs. Casalia' C. :ASTILY CONCLUDED C+A

28 .. < months prior to the e%piration of the C4A, the company and the union renewed the same for another + years. Can the renewed C4A be set up as a bar to the holding of the certification election2 &f the C4A is prematurely renewed, such is not a bar to the holding of a certification election. #he E" and a friendly union can not by the mere e%pedient of prematurely renewing their C4A, effectively deprive the wor'ers of their right to freely select their bargaining agent. #2eneral /extiles Allied 6or)ers Association vs. .irector of Labor Relations' 0. AL8 had a C4A with 3ASA". Several days before the e%piration of the C4A 9A7L8 filed a petition for certification election. )uring the pendency of the representation case, the 6ed-Arbiter en5oined 3ASA" from entering into a C4A with any union. ;owever, AL8 and 3ASA" concluded a C4A. &s the new C4A a bar to certification election2 9o. #he C4A was hastily concluded, showing that the parties were in bad faith when they concluded the C4A. #AL- vs. Ferrer5Calle0a' D. C+A T:AT DOES NOT @OSTER STA+ILITY 6ore than half of the members of a union resigned from it to form another union. &t later filed a petition for certification election within the F,-day freedom period. 6eanwhile the old union and the company entered into a new C4A. &s the contract bar rule applicable2 9o. &t is doubtful if any contract that may have been entered into between AL8 and the company will foster stability in the bargaining unit in view of the substantial number of EEs that have resigned from the old union and 5oined the new union. #Firestone vs. strella' E. E.CEPTION )eviation from the contract bar rule is 5ustified only where the need for industrial stability is clearly shown to be the imperative. #P6-P vs. Lagues!a' @. >ALIDITY O@ C+A SI9NED DURIN9 REPRESENTATIONS DISPUTE 1hen a C4A is entered into at the time when a petition for certification election had already been filed by a union and was then pending resolution, the said C4A cannot be deemed permanent, precluding the commencement of negotiations by another union with management. #A/- vs. /ra0ano' 2.4 Su!pen!ion o Certi ication E%ection -re7udicial :uestion Rule .. 8nited C6C #e%tile 1or'ers filed a complaint for unfair labor practice against CE9#EO and 3A7L8, alleging the CE9#EO helped and cooperated in the organi$ation of 3A7L8. )uring the pendency of the case, 3A7L8 filed a petition for certification election. 6ay the certification election be suspended pending the determination of the case2 =es. 3endency of a formal charge of company domination is a pre5udicial (uestion that bars proceedings for certification election. A United CMC Te3ti%e 6or7er! &!. +LRB

29 0. 6(o can i%e and 5aintain an oppo!ition to t(e (o%din' o t(e certi ication e%ection $a!ed on a c(ar'e o co5pany do5inationB *nly the union who made the charge since it is the entity that stands to lose and suffer pre5udice by the certification election. A&d.B 6(at i t(ere i! a pendin' un air %a$or practice c(ar'e $y t(e ER a'ain!t t(e union. Can t(i! !tay t(e certi ication e%ectionB 9o. #4arrera vs. CIR' +. 6(at 7ind o c(ar'e o co5pany do5ination 8i%% not !u!pend t(e certi ication proceedin'!B A charge that is flimsy, made in bad faith or filed purposely to forestall the certification election. A&d.B 2.= E ect o Pendin' Petition or Cance%%ation o Trade Union re'i!tration An order to hold a certification election is proper despite the pendency for cancellation of the registration certificate of union which is a party to the representation dispute. #he rationale for this is that all the time the respondent union filed its petition, it still had the legal personality to perform such act absent an order directing a cancellation. #Association of CA 7s vs. Ferrer5Calle0a' Section 4. Co%%ecti&e +ar'ainin', Proce!!, Procedure! and I!!ue! 4.1 9enera% Concept! 1. 6(at i! co%%ecti&e $ar'ainin'B Collective bargaining has been defined as the process of negotiation between an E" or E"s and the EEs organi$ation or union to reach an agreement on the terms and conditions of employment for a specified period. &t covers the entire range of organi$ed relationships between E"s and EEs represented by union, this includes the negotiation, administration, interpretation or application of the labor contract. #Alcantara' 0. 6(at are t(e 5o!t i5portant ai5! or a!pect! o co%%ecti&e $ar'ainin' 2 #he most important aims are / a. #o establish industrial peace by enabling capital and labor to resolve their disputes and controversies on terms mutually acceptable and satisfactory to themselves. b. #o enhance industrial efficiency through speedy resolution of labor disputes concerning fi%ing of wages, wor'ing hours and other terms and conditions of contracts incorporating such agreements, and the ad5ustment or settlement of any grievance arising thereunder. c. #o establish benefits of labor higher or greater than those fi%ed by law. #he various aspects are / d. #he duty of the parties to bargain and negotiate on proposals concerning wages, wor'ing hours and other terms and conditions of employment. e. #he duty of the parties to adhere to statutory standards of good faith, promptness and e%peditious actions. f. #he duty to refrain from unilateral changes concerning matters sub5ect to bargaining. g. &n case there is an e%isting C4A, the duty to adhere faithfully to its terms and not terminate or modify the same during its period of effectivity. #Alcantara'

30

+. 6(at i! t(e nature and purpo!e o co%%ecti&e $ar'ainin'B Collective bargaining is a democratic framewor' to stabili$e the relation between labor and management to create a climate of sound and stable industrial peace. &t is a mutual responsibility of the E" and the union and is their legal obligation. #loy vs. *LRC' /. 6(at are t(e Huri!dictiona% precondition! o co%%ecti&e $ar'ainin'B #he mechanics of collective bargaining is set in motion only when the following 5urisdictional preconditions are present / a. 3ossession of the status of ma5ority representation of the EEs representative in accordance with any of the means of selection or designation provided by the Labor Code. b. 3roof of ma5ority representation. c. )emand to bargain under Art. 0G,. A&d.B 4.2 +ar'aina$%e I!!ue! Obligation to +egotiate $andatory 5argaining &ub7ects 1. 2t is the obligation of the ER and the EE%s representati"e to bargain ith each other ith respect to ; ages hours and other terms and conditions of employment<. #hey are statutory of mandatory proposals re(uiring the party to whom they are made to bargain in good faith concerning them. #A"ucena' ;owever, the law does not compel agreements between E"s and EEs and neither party is obligated to yield even on a mandatory bargaining sub5ect, for as long as they bargain in good faith. A&d.B 2. 6(at are con!idered 5andatory !u$Hect! o $ar'ainin'B a. 1ages and other types of compensation b. 1or'ing hours c. Pacations and holidays d. 4onuses e. 3ensions and retirement plans f. Seniority g. #ransfer h. Lay-off i. EEs wor'loads 5. 1or' rules and regulations '. "ent company houses l. 8nion security arrangements #A"ucena' m. 9o-Loc'out Clause n. Clause fi%ing contractual term. +on,$andatory &ub7ects 1. #he right to bargain on a non-mandatory sub5ect does not include to right to insist on the inclusions of the non-mandatory sub5ect in the C4A as a condition to any agreement. #A"ucena' 0. 9i&e !o5e e3a5p%e! o non)5andatory !u$Hect! / a. 6anagement prerogative clauses. b. 8nion discipline clause.

31 c. Arbitration, stri'e vote or no-stri'e clauses. 4.# +ar'ainin' Procedure -ri"ate -rocedure Art. 221 / &n the absence of the C4A, it shall be the duty of the E" and the representatives of the EEs to bargain collectively. (ode -rocedure De!cri$e t(e procedure in co%%ecti&e $ar'ainin' / &n the absence of an agreement or other voluntary arrangement providing for a more e%peditious manner of collective bargaining, the following procedures shall be observed / .. 1hen a party desires to negotiate an agreement, it shall serve a written notice upon the other with a statement of its proposals. #he other party shall ma'e a reply thereto not later than ., calendar days from the receipt of such notice. 0. Should difference arise on the basis of such notice and reply, either party may re(uest a conference which shall begin not later than ., calendar days from date of re(uest. +. &f the dispute is not settled, the 4oard shall intervene upon re(uest of either or both parties to conciliation meetings. #he 4oard shall have the power to issue subpoenas re(uiring the attendance of the parties to such meetings. &t shall be the duty of the parties to participate fully and promptly in the conciliation meetings the 4oard may call. :. )uring the conclusion proceedings in the 4oard, the parties are prohibited from doing any act which may disrupt or impede the early settlement of the dispute. 5. #he 4oard shall e%ert efforts to settle disputes amicably and encourage the parties to submit their case to voluntary arbitration. #Art. $,?' 6. #he parties shall at the re(uest of either of them, ma'e available such up-to-date financial information on the economic situation of the underta'ing, as is material and necessary for meaningful negotiations. 1here the disclosure of some of the information could be pre5udicial to the underta'ing, its communication may be made condition upon a commitment that it would be regarded as confidential to the e%tent re(uired. #Sec. ,A Rule BIIIA 4oo) :A IRR7s' 7. &nformation and statements made at conciliation proceedings shall be treated as privilege communication and shall not be used as evidence in the Commission. Conciliators and similar officials shall not testify in any court or body regarding any matters ta'en up at conciliation proceedings conducted by them. #Art. $&&' 8. #he agreement negotiated by the EEs bargaining agent should not be ratified or approved by the ma5ority of all the wor'ers in the bargaining unit. #Art. $&>' ?"atification in not needed when the C4A is a product of an arbitral award. #he arbitral award may result from voluntary arbitration or from the secretarys assumption of 5urisdiction or certification of the dispute to the 9L"C. #A"ucena'] A. NATURE O@ PROCEDURE Collective bargaining does not end with the e%ecution of an agreement. &t is a continuous process. #he duty to bargain imposes on the parties during the term of their

32 agreement the mutual obligation to meet and confer promptly and e%peditiously and in good faith for the purpose of ad5usting any grievances or (uestion arising under such agreement. #RS4 vs. CIR' Duty to 5argain E3p%ain t(e 5eanin' o t(e duty to $ar'ain e ecti&e%y / #he duty to bargain collectively means the performance of a mutual obligation to meet and confer promptly and e%peditiously and in good faith for the purpose of negotiating an agreement with respect to wages, hours of wor', and all other terms and conditions of employment including proposals for ad5usting grievances or (uestions arising under such agreement and e%ecuting a contract incorporating such agreement if re(uested by either party, but such duty does not compel any party to agree to a proposal or to ma'e any concession. #Art. $,$' &n case there is an e%isting collective contract, the duty shall include the obligation to adhere faithfully to its terms and not terminate or modify the same during its period of effectivity. #Art. $,&' 4./ T(e C+A 6(at i! t(e C+AB &t is a negotiated contract between a legitimate labor organi$ation and the E" concerning wages, hours of wor' and all other terms and conditions of employment in a bargaining unit, including mandatory provisions for grievances and arbitration machineries. #Sec. >A Rule :IA 4oo) :A IRR7s' Registration , -eriod! Re.uirements and Actions Art. 2#1 / 1ithin +, days from the e%ecution of a C4A the parties shall submit copies of the same directly to the 4ureau of "egional *ffice of the )*LE for registration accompanied with verified proofs of its posting in 0 conspicuous places in the place of wor' and ratification by the ma5ority of all the wor'ers in the bargaining unit. #he 4ureau of "egional *ffices shall act upon the application for registration of such C4A within G calendar days from the receipt thereof. #he "egional office shall furnish the 4ureau with a copy of the C4A within G days from its submission. #he 4ureau shall maintain a file of all C4As and other related agreements and records of settlements of labor disputes and copies of orders, decisions of voluntary arbitrators. #he file shall be open and accessible to interested parties under conditions prescribed by the Sec. of Labor and Employment. (ontract 5eneficiaries 1. 1hen a C4A is entered into by the union representing the EEs and the E", even the non-member EEs are entitled to the benefits of the contract. #Rivera vs. SMC' 2. A C+A pro&ide! or t(e deduction o union due! ro5 non)5e5$er o t(e $ar'ainin' union. I! t(e !tipu%ation &a%idB =es. &t provides for the collection of an agency fee from the members who accept and en5oy the benefits attained through the efforts of the bargaining agent. #he non-union members should not be un5ustly enriched at the e%pense of the bargaining agent. #Alcantara' 3. :o8 a$out i t(e !tipu%ation 8a! not pro&ided or in t(e C+A $ut 8a! 5ere%y reAue!ted $y t(e $ar'ainin' union ro5 t(e ERB #he stipulation is still valid. EEs of an appropriate collective bargaining unit who are not members of the recogni$ed collective agent may be assessed a reasonable fee e(uivalent to the dues and other fees paid by members of the recogni$ed collective bargaining agent, if such union members accept the benefits under the C4A. #he individual authori$ation re(uired under Art. 2=> shall not apply to the non-members recogni$ed collective bargaining agent. #Art. $=3' #he law does not impose as a condition for the collection of the agency fee that the same be provided in the

33 C4A, the basis of the unions right to the agency fee is (uasi-contractual, not contractual. #Alcantara' :. #he C4A negotiated by union = provides for wages to EEs in the production and maintenance department. #o avoid discrimination, the company also granted the increases to EEs in the administrative and sales department. 8nion = now demands an agency fee from the EEs of these departments. &s such demand valid2 9o. &n the .st place, the EEs in the latter 0 departments do not belong to the bargaining unit covered by the agreement. &n the 0 nd place, the wage increases were not obtained through the efforts of union =. A&d.B (ontract Administration and Enforcement A. NATURE O@ CON@LICT 1. 1hile the terms and conditions of a C4A constitute the law between the parties, it is not, however, an ordinary contract to which is applied the principles of law governing ordinary contracts. A C4A, as a labor contract within the contemplation of Art. .I,,, 9CC which governs the relations between labor and capital, is not merely contractual in nature but impressed with public interest, thus it must yield to the common good. As such, it must be construed liberally rather than narrowly and technically, and the courts must place a practical and realistic construction upon it, giving due consideration to the conte%t in which it is negotiated and the purpose which it is intended to serve. #.avao Integrated vs. Abar9ue"' ;owever, li'e ordinary contracts, ignorance of its terms by either party, including the EEs who are principals of the bargaining union, will not 5ustify the breach of the contract. #Manalang vs. Artex' 0. #he C4A was not formally ratified by the ma5ority of the wor'ers in the bargaining unit. ;owever, the wor'ers received and en5oyed the benefits under the C4A. Can the EEs later on have the contract invalidated for lac' of formal ratification2 9o. #he EEs have already en5oyed benefits from it. #hey cannot receive benefits under provisions favorable to them and later insist that the C4A is void simply because other provisions turn out not to the li'ing of certain EEs. #Planters Product vs. *LRC' #. Are 8a'e increa!e! paid $y t(e ER pur!uant to %a8! and 8a'e order! co5p%iance 8it( t(e 8a'e increa!e! pro&ided or under a C+AB 9o. &n the absence of a provision of law or the C4A to the effect that benefits provided by the former encompass those provided by the latter, benefits derived from either law or a contract should be treated as separate from each other. A C4A is a contractual obligation imposed by law. EE benefits derived from law are e%clusive of benefits arrived through negotiation and agreement unless otherwise provided by the agreement itself or by law. #Meycauayan College vs. .rilon' +. 9RIE>ANCE PROCEDURE 1 DISPUTE SETTLEMENT" ISSUES AND INDI>IDUAL 9RIE>ANCE .. Art. 24? / #he parties to the C4A shall include therein provisions that will ensure the mutual observance of its terms and conditions. #hey shall establish machinery for the ad5ustment and resolution of grievances arising from the interpretation of their C4A and those arising from the interpretation or enforcement of company personnel police.

34 All grievances submitted to the grievance machinery which are not settled within I calendar days from its date of submission shall automatically be referred to voluntary arbitration prescribed in the C4A. 0. Art. 222 / ;owever, an individual EE or group of EEs shall have the right at any time to present grievances to their E". +. N, a member of a union has been certified as the sole and e%clusive bargaining representative of the EEs, sends a letter to management re(uesting, in view of inflation, for an increase in his wages. &s this allowed2 =es. Although there may be an e%clusive bargaining agent, an individual EE or group of EEs have the right to present grievances to their E". &t would have been different if N demanded for wage increases for the other EEs . #Alcantara' C. CONTRACT DURATION AND RENE6ALS 1. Art. 22#)A " a. Any C4A that the parties may enter into shall, insofar as the representation aspect is concernedD be for a term of G years. 9o petition (uestioning the ma5ority status of the incumbent bargaining agent shall be entertained and no certification election shall be conducted by the )*LE outside of the F,-day period immediately before the e%piry date of the C4A. b. All other provisions of the C4A shall be renegotiated + years after its e%ecution. c. Any agreement on such other provisions of the C4A entered into within F months from the date of e%piry of the term of such other provisions in the C4A, shall retroact to the day immediately following such date. &f any such agreement is entered into beyond F months, the parties shall agree on the duration of retroactivity thereof. 0. Contract continue to have legal effects even after its e%piry date, until a new C4A is renegotiated and e%tended into. #Lope" Sugar Corporation vs. FF6' :. 8nion A and Co. 4 concluded a C4A with a duration of + years. 8pon the e%piration of the +-year period, Co. 4 discontinued to benefits under the C4A. &s this legal2 9o. Art. 0G+ re(uires the parties to 'eep the status (uo and discontinue in full force, and effect until a new agreement is reached. #Alcantara' D. C+A AND #RD PARTY APPLICA+ILITY 8nless e%pressly assumed, labor contracts such as employment contracts and C4As are not enforceable against a transferee of an enterprise, labor contracts being in personam, thus binding only between parties. As a general rule, there is no law re(uiring a bona fide purchaser of assets of an ongoing concern to absorb in its employ the EEs of the latter. ;owever, although the purchaser of the assets or enterprise is not legally bound to absorb in its employ the EEs of the seller of such assets or enterprise the parties are liable to the EEs if the colored or clothed with bad faith. #AL- vs. *LRC' E. C+A AND T:E SEC. O@ LA+OR AND EMPLOYMENT

35 May t(e partie! $e reAuired $y t(e Sec. o La$or and E5p%oy5ent to e3ecute a C+A e5$odyin' ter5! and condition! t(at t(e %atter 5ay deter5ineB =es. #his is pursuant to the power of compulsory arbitration vested in the Secretary. A Art. 24#B Section =. Un air La$or Practice I.. Introductory Concept! 9i&e t(e concept o un air %a$or practice under t(e La$or Code / 8nfair labor practices .. Piolate the constitutional right of wor'ers and EEs to Self-organi$ation 0. Are inimical to the legitimate interests of both labor and management, including their right to bargain collectively and otherwise deal with each other in an atmosphere of freedom and mutual respect. +. )isrupt industrial peace. :. ;inder the promotion of healthy and stable labor management relations. A :IDSB I.0 ReAui!ite Re%ation!(ip Condition! precedent to an Un air La$or Practice 6(at are t(e condition! precedent to an un air %a$or practice c(ar'eB .. #he in5ured party comes within the definition of EE as that term is defined by the Code. 0. #he act charged as unfair labor practice must fall under Art. 0:< or 0:J. =.# No Un air La$or Practice " I%%u!trati&e In!tance! o Mana'e5ent Ri'(t! >a%id E3erci!e o

-ersonnel $o"ements 1. As a rule, it is the prerogative of the company to promote, transfer or even demote its EEs to the other positions when the interests of the company reasonably demand it. 8nless there are instances which directly points to interference by the company with the EEs rights to self-organi$ation, the transfer of an EE should be considered as within the bounds allowed by law. #Rubber8orld vs. *LRC' 0. J teachers were hired by a school on a yearly basis. #he nine are members of a union. After their 0nd yearly contract, the school refused to renew their contract on the ground that their teaching performances were not satisfactory. &s the refusal unfair labor practice2 9o. #he refusal was not by reason of their union membership but by reason of their poor teaching performances. #4ilboso vs. :ictorias Mining' 'rant of -rofit,&haring 5enefits to +on,0nion $embers &t is the prerogative of management to regulate, according to its discretion and 5udgment, all aspects of employment. Such management prerogative may be availed of without fear of any liability so long as it is e%ercised in good faith for the advancement of the E"s interest and not for the purpose of defeating or circumventing the rights of EEs under special laws or valid agreement and are not e%ercised in a malicious, harsh oppressive, vindictive or wanton manner or out of malice or spite. #6ise vs. 6ise 7s -nion'

36

/orced 6acation Lea"e #he forced vacation leave without pay in view of the economic crisis, being neither malicious, oppressive or vindictive, does not constitute unfair labor practice. #Philippine 2raphic vs. *LRC' 2ssuance of Rules or -olicy Every business enterprise endeavors to increase its profits. &n the process, it may adopt or devise means designed towards that goal. #SMC vs. 1ple' Ta7in' Action A'ain!t S%o8do8n EEs have the right to stri'e, but they have no right to continue wor'ing while re5ecting the standards desired by their E". ;ence, the E" does not commit as unfair labor practice by discharging EEs who engaged in slowdown, even if their ob5ect is a pay increase and therefore is lawful. #A"ucena' EE Di!cip%ine #he dismissal of a union member because of threats made against the life of the E" and there being evidence that more active members of the union were retained is not an unfair labor practice. #P/-C vs. CIR' (losed &hop Agreements )ismissal of an EE upon demand of a union pursuant to a closed shop agreement is not an unfair labor practice. #Lirag /extile vs. 4lanco' I.: Un air La$or Practice o ER0! Restraint! 2nterference or (oercion Art. 2/- / &t shall be unlawful for the E" to interfere with, restrain or coerce EEs in the e%ercise of their right to self-organi$ation. 1. Although e%perience has shown that certain forms of conduct, however disguised, either directly or indirectly result in actual interference with or intimidation of EEs in e%ercising their rights, to distinguish between culpable interference from an innocent and non-interfering course of conduct is often difficult. &nterference with EE organi$ational rights was found where the superintendent of the E" threatened the EEs with cutting their payD increasing rent of the company houses, or closing the plant if they supported the union and where the E" encouraged the EEs to sign a petition repudiating the union. #A"ucena' A. INTERRO9ATION &n order that (uestioning of an EE concerning his union activities would not be deemed coercive, the E" must communicate to the EE the purpose of the (uestioning, assure him that no reprisal would ta'e place, and obtain his participation on a voluntary basis. &n addition, (uestioning must also occur in a conte%t free from E" hostility to union organi$ation and must not itself be coercive in nature. A&d.B 4. PRO:I+ITIN9 AND INTER@ERIN9 IN OR9ANI;IN9 ACTI>ITIES

37 9i&e in!tance! o un air %a$or practice in t(e or5 o pro(i$ition! a'ain!t union or'ani*in' acti&itie! " 1. "ule prohibiting solicitation of union membership in company property during non-wor'ing and wor'ing time. A&d.B 4ut if the prohibition is merely during wor'ing hours, this is not unfair labor practice since the E" has the prerogative of promulgating rules and enhance production within its premises during wor'ing hours. #Alcantara' 2. )ismissal of union members upon their refusal to give up their membership, under prete%t of retrenchment due to reduced dollar allocations. #Manila Pencil Co. vs. CIR' 3. "efusal over period of years to give salary ad5ustments according to improved salary scales in the C4As. #4enguet Consolidated vs. 4CI 7s -nion' 4. )ismissal of an old EE allegedly for inefficiency, on account of her having 5oined a union and engaging in union activities. # ast Asiatic vs. CIR' 5. &ssuance of suspension and termination orders for EEs participating in a verification election. #2ochangco 6or)ers -nion vs. *LRC' 6. )ismissal of EEs who refused to resign from their union and to affiliate with another one which was formed at the instance of the E". #Progressive .evelop!ent vs. CIR' 7. C, the duly elected president of the union, was dismissed by the company for allegedly threatening the lives of : EEs. &t was however established that he was very active in union affairs and that he was dismissed a day after his union sent collective bargaining proposals to the companyD and that C, had no reason to threaten the : EEs. #Royal -ndergar!ent vs. CIR' 8. "efusal to renew teaching contracts of teachers because of fear of the school that there will be a stri'e the succeeding semester. #Ri"al5Me!orial Colleges -nion vs. *LRC' C. >IOLENCE OR INTIMIDATION Piolation must have been found where the E" threatened EEs favoring the union with force or violence. #A"ucena' &n another case, the E" was found guilty of unfair labor practice when 0 EEs were provo'ed into a fight by 0 recently hired EEs pursuant to a strategy of the company designed to provide an apparent lawful cause for their dismissal and said dismissed EEs had not figured in similar incidents before or violated companys rules in their many years with the company. #:isayan 4icycle vs. *L-' ). ESPIONA9E AND SUR>EILLANCE *ne form of pressure which some over-eager E"s sometimes use is the practice of spying upon EEs. &nasmuch as the pressure results more from the EEs apprehension than from the E"s purpose in spying, and the use of its results, it has been held to be no answer to a charge of unfair labor practice that the fruits of espionage were not used. 1hen an E" engages in surveillance or ta'es steps leading his EEs to believe it is going on, a violation results because the EEs come under threat of economic coercion or retaliation for their union activities. #A"ucena'

38 E. ECONOMIC INDUCEMENTS .. A violation results from an E"s announcements of benefits prior to a representation election, where it is intended to induce the EEs to vote against the union. A&d.B 0. 1hile a stri'e is going on, the president of the company sent each wor'er a letter stating among others that if the latter returned to wor', he can have his meals within the office, ma'e a choice whether to go home at the end of the day or to sleep nights at the office, en5oy free coffee and occasional movies. &s the writing of the letter unfair labor practice2 =es. #he letter tends to undermine the concerted activity of the EEs, an activity which they are entitled free from the E"s molestation. #Insular Life 7s Association vs. Insular Life' 7. E.PRESSION O@ ANTI)UNION OPINION &f the E" evinced willingness to be guided by and to accept the EEs choice, criticism or depreciating remar's made by the E" concerning a particular labor union or labor unions generally did not constitute an unfair labor practice, provided, of course, the remar's were not so hostile as to evidence or produce a coercive or intimidating purpose or effect. #A"ucena' 7.. Tota%ity o Conduct Doctrine #he culpability of E"s remar's were to be evaluated not only on the basis of their implicit implications, but were the be appraised against the bac'ground for and in con5unction with the collateral circumstances i.e. history of particular E"s labor relations or anti-union bias or because of their connection with an established collateral plan of coercion or interference. A&d.B H. MASS LAY)O@@ 1. A companys capital reduction efforts, a subterfuge, a deception, to camouflage the fact that it has been ma'ing profits and to 5ustify mass lay-off of its EE ran's, especially of union members, were an unfair labor practice. #Madrigal and Co!pany vs. Ca!ora' 2. #here is unfair labor practice in the lay-off of a ban' of FG EEs who were active union members allegedly by reason of retrenchment, although the ban' was not suffering any losses. #People7s 4an) vs. People7s 4an) 7s -nion' H. LOCKOUTS, CLOSURE 1. A loc'out, actual or threatened, as a means of dissuading the EEs from e%ercising their rights clearly an unfair labor practice. #A"ucena' 2. An E" which closes its business to put an end to a unions activities and which made no effort to allow the EEs attempt to e%ercise their right to selforgani$ation and collective bargaining commits unfair labor practice. #Sy Chi ;un) Shop vs. Federacion 1brero de la Industria' 3. 1here there is a simulated sale as a device to merely get rid of the EEs who were members of the union, the company is guilty of unfair labor practice. #Moncada 4i0on Factory vs. CIR' #he ac(uiring company created to relieve the old company of its obligations is liable for the old companys obligations. #PLASLvs. Sy Indong' #he doctrine of piercing the veil of corporate identity will be utili$ed, to the effect, that the separateness of corporate personality will be

39 disregarded if it is being used to run away from corporate obligations. #.elfin vs. Inciong' ;. RUN)A6AY S:OP #he transfer of an industrial plant from one location to another in order to discriminate against EEs at the old plant because of their union activities. #A"ucena' &. RE@USAL TO :IRE STRIKIN9 6ORKERS #here is unfair labor practice in the refusal of E" to reinstate stri'ers who abandoned their stri'e and who voluntarily and unconditionally offered to return to wor'. #Cro!8ell vs. CIR' ?ello Dog (ontract .. Art. 2/- / &t shall be unlawful for the E" to re(uire as a condition of employment that a person or an EE shall not 5oin a labor organi$ation or shall withdraw from one to which he belongs. 2. 6(at i! a ye%%o8 do' contractB &t is a promise e%acted from wor'ers a condition of employment that they do not belong to, or attempt to foster, a union during their period of employment. #he typical yellow dog contract contains a representation by the EE that he is not a member of a labor union and a promise by him not to 5oin a labor union or upon 5oining a union to (uit his employment. #Alcantara' +. O, a member of a union, applied for employment with = Co. #he union is not among the unions in the bargaining unit. ;e was told by the personnel manager that he cannot be employed unless he resigned from his union. O refuses to do so. ;e was not hired. &s this unfair labor practice2 =es. #his is an e%ample of an e%action of a yellow dog contract. #he defense that O is not yet an EE of = is not tenable since the unfair labor practice covered by a yellow dog contract may be committed against a prospective EE. #Alcantara' (ontracting Wor) Out .. Art. 2/- / &t shall be unlawful for an E" to contract out services or functions being performed by union members when such will interfere with, restrain or coerce EEs in the e%ercise of their rights to self-organi$ation. 0. Shell dissolved its security guard section, transferred .< guards to other departments and eventually dismissed them, then contracted out to an independent security agency. Such section was among the departments covered by the e%isting C4A. &n the absence of an e%press reservation in the C4A of Shells right to abolish the section, did the E" commit unfair labor practice2 =es. #he dissolution of a section is a violation of the C4A, the terms of which cannot be unilaterally disregarded by either party. Shell should have specifically reserved its right to dissolve the sectionD a statement of management prerogatives couched in general terms is not sufficient. #Shell 1il vs. Shell' (ompany Dominated 0nion .. Art. 2/- / &t shall be unlawful for an E" to initiate, dominate, assist or otherwise interfere with the formation or administration of any labor organi$ation, including the giving of financial aid or other support to it or its organi$ers or supporters. 2. 6(at are t(e &ariou! 5ani e!tation! o do5ination o %a$or unionB a. &nitiation of the company union idea.

40 b. 7inancial support to the union. c. E" encouragement and assistance i.e. immediately granting the union e%clusive recognition as a bargaining agent without determining ma5ority representation. d. Supervisory assistance i.e. solicitation of membership. #Philippine A!erican Cigarette Factory -nion vs. Philippine A!erican Cigarette Factory' Discrimination 1. Art. 2/- / &t shall be unlawful for an EE to discriminate in regard to wages, hours of wor', and other terms and conditions of employment in order to encourage or discourage membership in any labor organi$ation. ?)iscouraging membership in a labor organi$ation includes not only discouraging adhesion to union membership but also discouraging participation in union activities such as a legitimate stri'e. #A"ucena'D 0. 9i&e !o5e e3a5p%e! o di!cri5ination re!u%tin' in un air %a$or practice! / a. )iscrimination in wor' (uota between members and non-members of union. #A@SEPhilippines 7s -nion vs. *LRC' b. )iscrimination in dissemination of bonus allocation of salary ad5ustments between members and non-members of union contrary to previous practice of dividing e(ually the percentage of net profits. #Manila @otel vs. CIR' c. Even where business conditions 5ustified a lay-off of EEs, unfair labor practices in the form of discriminatory dismissal were found where only unionists were permanently dismissed while non-unionists were not . #Manila Pencil vs. CIR' d. )iscrimination in regulari$ation between old EEs who were members of union and new EEs who were non-members. #he new EEs were immediately given permanent appointments after their hiring. #Manila Railroad vs. (apisanan ng !ga Manggaga8a sa Manila Railroad' e. &ndirect discrimination i.e. the discharge of an EE due to the union activities of wife, brother or husband. #A"ucena' +. 6(at i! t(e te!t o di!cri5ination to $e con!idered un air %a$or practiceB &t is necessary that the underlying reason for the discharge be established. #he fact that a lawful cause for discharge is available is not a defense where the EE is actually discharge because of his union activities. &f the discharge is actually motivated by a lawful reason, the fact that the EE is engaged in union activities at the time will not lie against the E" and prevent him from the e%ercise of his business 5udgment to discharge an EE for cause. A&d.B :. A company considers one factor for promotion the fact that an EE is &locano. Assuming this is discriminatory, is this unfair labor practice2 9o. *nly such act as would interfere with the EEs right to self-organi$ation, encourage or discourage membership in a labor organi$ation, or discriminate against an EE of having given or being about to give testimony under the Code are considered unfair labor practices. #he said provisions, being penal in character, should be strictly construed. #Alcantara' 6iolation of Duty to 5argain .. Art. 2/- / &t shall be unlawful for an E" to violate the duty to bargain collectively as prescribed by this Code.

41

2. 1hile the law does not compel the parties to reach an agreement, it does contemplate that both parties will approach the negotiation with an open mind and ma'e reasonable effort to reach a common ground of agreement. #(io) Loy vs. *LRC' +. AL8 was certified as the bargaining agent of 4almar 7arms. 4almar subse(uently received a letter by the president of the union of its wor'ers that they wanted to negotiate directly with the company and not through AL8. 4ecause of this, 4almar refused to negotiate with AL8. &s this unfair labor practice2 =es. AL=8 has been certified as the e%clusive bargaining agent, and it is not for 4almar to (uestion which group in the bargaining representative of its wor'ers. #4al!ar far!s vs. *LRC' 1estimony of EE Art. 2/- / &t shall be unlawful for an E" to dismiss , discharge or otherwise pre5udice or discriminate against an EE for having given or being about to give testimony under this Code. +egotiation or Attorneys /ees Art. 2/- / &t shall be unlawful for an E" to pay negotiation of attorneys fees to the union or its officers or agents as part of the settlement of any issue in collective bargaining or any other dispute. 6iolation of (5A .. Art. 2/- / &t shall be unlawful for an EE to violate a C4A. 0. Art. 241 / Piolations of a C4A, e%cept those which are gross in character, shall no longer be treated an unfair labor practice and shall be resolved as grievances under the C4A. I.G Un air La$or Practice o La$or Or'ani*ation! Restraint or (oercion by Labor Organization .. Art. 2/< / &t shall be unfair labor practice for a labor organi$ation to restrain or coerce EEs in the e%ercise of their right to self-organi$ation. 2. #he provision is violated by a unions restraining or coercing an EE in the e%ercise of his right to refuse to participate or recogni$e a stri'e i.e. bloc's their ingress and egress from the plant or damages their automobiles. #A"ucena' Discrimination .. Art. 2/< / &t shall be unfair labor practice for a labor organi$ation to cause or attempt to cause an E" to discriminate against an EE, including discrimination against an EE with respect to who, membership in such organi$ation has been denied or to terminate an EE on any ground other than the usual terms and conditions under which membership is made available to other members. 2. #he union may not arbitrarily use the union security clause to un5ustly discriminate against non-members of the union. #Salunga vs. CIR' +. )ue to negligence of a mother federation in attending to a case filed by its local against the E", +0 out of the +F members of the local union signed a resolution of disaffiliation from the mother federation. #he federation demanded dismissal of the union members pursuant to the maintenance of membership clause in the

42 C4A. #hereafter, the union members were dismissed. &s there unfair labor practice2 =es. #he union members were dismissed by reason of their freedom to disaffiliate. #Liberty Cotton Mills 6or)ers -nion vs. Liberty Cotton Mills' :. 6(at i! t(e %ia$i%ity o t(e ER and t(e 5ot(er ederationB #he companys liability should be limited to reinstatement considering that the dispute revolve around the mother federation and its local. #he mother federation at whose instance the wor'ers were dismissed, should be held liable for payment of bac'wages. A&d.B Refusal to 5argain Art. 2/< / &t shall be unfair labor practice for a labor organi$ation to violate the duty, or refuse to bargain collectively with the E", provided it is the representative of the EEs. /eatherbedding and $a)e,Wor) Arrangements .. Art. 2/< / &t shall be unfair labor practice for a labor organi$ation to cause or attempt to cause an E" to deliver or agree to pay or deliver any money or other things of value, in the nature of an e%action, for services which are not performed or not to be performed including the demand for free for union negotiations. 2. De ine eat(er$eddin' / 9ame given to EE practices which create or spread employment by unnecessarily maintaining or increasing the number of EEs used, or the amount of time consumed to wor' on a particular 5ob. #A"ucena' +. A union in a company declares a stri'e to compel the E" to assign 0 chec'ers to . container. &f it can be established that only . chec'er is needed for a container, has the union committed in unfair labor practice2 =es. #he union is guilty of featherbedding. +egotiation /ees Art. 2/< / &t shall be unfair labor practice for a labor organi$ation to as' for or accept negotiations or attorneys fees from the E"s as part of the settlement of any issue in collective bargaining or any other dispute. 6iolation of (5A .. Art. 2/< / &t shall be unfair labor practice for a labor organi$ation to violate a C4A. 2. Art. 241 / Piolations of a C4A, e%cept those which are gross in character, shall no longer be treated as unfair labor practice and shall be resolved as grievances under the C4A. QHross Piolations of a C4A @ 7lagrant andCor malicious refusal to comply with the economic provisions of such agreement. #Alcantara' =.4 En orce5ent, Re5edie! and Sanction! -arties Liable for Acts .. 6(o 5ay co55it an un air %a$or practiceB #he E" or a labor organi$ation may commit unfair labor practices. A&d.B

43 0. In ca!e t(e ER co55ittin' t(e un air %a$or practice! i! a corporation, a!!ociation or partner!(ip, 8(o 5ay $e (e%d cri5ina%%y %ia$%eB *nly the officers and agents of corporations, associations or partnerships who have actually participated in, authori$ed or ratified the unfair labor practices shall be held criminally liable. AArt. 2/-B +. 6(o 5ay $e (e%d cri5ina%%y %ia$%e or t(e un air %a$or practice! co55itted $y %a$or union!B *nly the officers, members of governing boards, representatives or agents or members of labor associations or organi$ations who have actually participated in, authori$ed or ratified the unfair labor practices shall be held criminally liable. AArt. 2/<B -rosecution and -rescripti"e -eriod A. CI>IL ASPECT .. Art. 2/= / Sub5ects to the e%ercise by the 3resident or by the Secretary of Labor and Employment of the powers vested in them by Arts. 0F+ and 0F: of this Code, the civil aspects of all cases involving unfair labor practices which may include claims for actual, moral, e%emplary and other forms of damages, attorneys fees and other affirmative relief, shall be under the 5urisdiction of the Labor Arbiters. #he Labor Arbiters shall revolve such cases within +, days from the time they are submitted for decision. "ecovery of civil liability in the administrative proceedings shall bar recovery under the Civil Code. 0. Art. 2<? / All unfair labor practices shall be filed with the appropriate agency within . year from the accrual of such unfair labor practice, otherwise, they shall be forever barred. +. CRIMINAL ASPECT .. Art. 2/= / 9o criminal prosecution may be instituted without a final 5udgment finding that an unfair labor practice was committed, having been first obtained in the administrative proceedings. )uring the pendency of the administrative proceeding, the running of the period of prescription of the criminal offense herein penali$ed shall be considered interrupted. #he final 5udgment in the administrative proceeding shall not be binding in the criminal case nor be considered as evidence of guilt but merely as proof of compliance of the re(uirements therein set forth. 0. Art. 2<? / All unfair labor practices shall be filed with the appropriate agency within . year from the accrual of such unfair labor practice, otherwise, they shall be forever barred. +. Art. 22- / #he criminal charge shall fall under the concurrent 5urisdiction of the 6unicipal or regional trial Court. :. 6(en i! an un air %a$or practice dee5ed to $e pure%y an ad5ini!trati&e o en!e and not a cri5ina% actB 1hen the acts complained of hinges on a (uestion of interpretation or implementation of ambiguous provisions of an e%isting C4A. AArt. 2--B (ompromise 8nfair labor practice is not sub5ect to compromise. #2ochangco 6or)ers -nion vs. *LRC'

44 Relief in 0nfair Labor -ractice (ases 6(at are t(e &ariou! or5! o re%ie a&ai%a$%e in un air %a$or practice ca!e!B .. Cea!e and De!i!t Order ! *rder served upon such person re(uiring him to cease and desist from such unfair labor practice. 0. A ir5ati&e order ! )irecting full reinstatement of EE with bac' pay. +. Di!e!ta$%i!(5ent ! *rders directing the E" to withdraw all recognition from a company-dominated labor union and to disestablish the same. :. Order to $ar'ain ! Affirmative order to the respondent to bargain with the bargaining agent. -enalties Art. 2-- / E%cept as otherwise provided in this Code, or unless the acts complained of hinges on a (uestion of interpretation or implementation of ambiguous provisions of an e%isting C4A, any violation of the provisions of this Code declared to be unlawful or penal in nature shall be punished with .. A fine of not less than 3.,,,,.,, nor more than 3.,,,,,.,, or 0. &mprisonment of not less than + months or more than + years , or +. 4oth such fine and imprisonment at the discretion of the court. &n addition to such penalty, any alien found guilty shall be summarily deported upon completion of service of sentence. Section. -. Union Security <.. Statutory +a!i! Art. 2/- / 9othing in this Code or in any other law shall stop the parties from re(uiring membership in a recogni$ed collective bargaining agent as a condition of employment, e%cept those EEs who are already members of another union at the time of the signing of the C4A. <.0 Type! 1 Union Security Pro&i!ion! 6(at are t(e di erent type! o union !ecurity arran'e5ent!B .. C%o!ed !(op ! Agreement whereby an E" binds himself to hire only members of the contracting union who must continue to remain members of the union in good standing for the duration of the agreement as a for the continued employment. 0. Union !(op ! *nly whereby an E" is permitted to employ a union-wor'er, but to retain employment such wor'er must become a union member after some period and maintain his membership therein in good standing for the duration of the agreement. +. Maintenance and 5e5$er!(ip c%au!e ! )oes not re(uire non-members to 5oin the union but provides that those who do not 5oin must maintain their membership for the duration of the union contract, under penalty of discharge. :. A'ency !(op ! An agreement whereby EEs must either 5oin the union or pay to the union as e%clusive bargaining agent a sum e(ual to that paid by members. Di!tin'ui!( c%o!ed !(op ro5 union !(op " R C%o!ed !(op !

45 #he E" cannot hire any wor'er who is not a member of the contracting union. 6embership in the contracting union is a condition for employment and retention of employment. R Union !(op ! E" may hire wor'er who is not a member of the contracting union but the wor'er must within a specified period after his employment become a member of the contracting union. 6embership in the contracting union is a condition for continued employment. <.+ Rationa%e #he validity of a union security provisions is largely recogni$edD it is intended to ma'e the union strong that true collective bargaining may be assured. Statutes recogni$ing the validity of closed shop agreements have been 5ustified on the basis of police power. #he recognition of the validity of such agreements has been held to the most pri$ed achievement of unionism. #;uat vs. CIR' <.: >a%idity A'ree5ent and E ect on @reedo5 o C(oice A union security provision is not a restriction of the right of freedom of association guaranteed by the Constitution. #:illar vs. Inciong' <.G Contract Dra tin' and Interpretation o Pro&i!ion! 1 Union Security .. A C4A provides / #he union shall have the e%clusive right and privilege to supply the company with laborers and the company agrees to hire only such persons who are members of the union. &f the union member is e%pelled, is the company obliged to terminate the EEs employment2 9o. #he stipulation does not establish a closed-shop agreement / )ismissal pursuant to a closed-shop clause must clearly appear in the C4A. #Confederated Sons of Labor vs. Ana)an' 0. A C4A provides / #he E" agrees to employ only members in good standing of the union. #he E", however, reserves its rights to accept or re5ect EEs where they fail to meet its re(uirements. #he E" agrees not to employ any new EE unless he is a member of good standing of the union provided such new EE meets the (ualifications re(uired by the E". &s the E" obliged to terminate an e%pelled member of the union2 9o. #he contract does not clearly prescribe the period within which the EE must remain a member of good standing of the union. And it is not clear that membership in the union is a condition for continuation or retention of employment. Stipulations of this nature are strictly construedD doubts are resolved against the e%istence of the right to dismiss. <.F C%o!ed S(op A'ree5ent .. 6(en i! a c%o!ed !(op pro&i!ion not app%ica$%eB All EEs in the bargaining unit covered by a closed shop agreement are sub5ect to its terms, e@cept/ a. Any EE who at the time the closed shop agreement ta'es effect is a bona fide member of a religious organi$ation which prohibits its members from

46 5oining labor unions on religious grounds #:ictoriano vs. 6or)ers -nion' li"alde Rope

b. EEs already in the service and already members of a labor union or unions other than the ma5ority union at the time the closed shop agreement too' effect. #Sta. Cecilia Sa8!ills vs. CIR' c. Supervisors ineligible to 5oin the ma5ority union because of the membership therein of EEs under their supervision. #4ISC1M vs. PAFL-' d. EEs e%cluded from the closed shop by e%press terms of the agreement. #hese e%clusions applies to other types of union security arrangements, such as the agency shop. #*ational 4re8ery and Allied Industries Labor -nion vs. SMC' 0. O union has a C4A with =. Co. which provides #he Company underta'es not to employ anyone who is not a member of the 8nion and to dismiss from employment any EE who resigns or is e%pelled from the 8nion. M, an EE, resigns from the union. 4y reason of the agreement, he is dismissed. &s the dismissal valid2 =es. ;is dismissal was effected pursuant to the closed shop provision of the C4A. #he validity of such provision is recogni$ed. #;ust vs. CIR' +. 8nion A wins over 8nion 4 in a certification election, then enters into a C4A with the E". #he C4A contained a closed shop provision. &s the E" obliged to dismiss the members of union2 9o. #he closed shop agreement cannot be enforced against EEs who are already members of another union at the time of the signing of the C4A. #o compel the members of a minority union to disaffiliate from their union and 5oin the ma5ority or contracting union would render nugatory the right of the EEs to self-organi$ation. #Free!an Shirt vs. CIR' :. #he 4agong 4uhay 8nion had with the Arte% )evelopment a C4A with a closed shop stipulation. + of its members affiliated themselves with another union. 1hen being dismissed, they claimed they were unaware of the contents of the C4A. &s the contention tenable2 9o. 9either their ignorance, nor their dissatisfaction with the C4A would 5ustify breach thereof or the formation by them of a union of their own. A union member who is employed under an agreement between the union and his E" is bound by the provisions thereof. #Manalang vs. Artex .evelop!ent' <.I Maintenance o Me5$er!(ip .. A C4A provides / 4oth parties agree that all EEs of the company who are already members of the union at the time of the signing of this agreement shall continue to remain members of the union for the duration of the agreement. + members of the union resigned to 5oin a new union. #hey were dismissed. &s their dismissal legal2 9o. #he contractual provision relied upon does not e%pressly provide that membership in the union is a condition for continued employment in order that an E" may be bound to dismiss EEs who does not maintain their membership in the union is a condition for continued employment. &n order that an E" may be bound to dismiss EEs who do not maintain their membership in the union, the stipulation to

47 this effect must be so clear as to leave no room for doubt. An underta'ing of this nature is so harsh that it must be strictly construed and doubts must be resolved against the e%istence of the right to dismiss. #Manila Cordage vs. CIR' 0. About < months after the e%ecution of a C4A, some union members 5oined another union and even filed a petition for certification election. As the C4A contained a maintenance of membership clause the bargaining agent sought the dismissal of the EEs. &s this valid2 =es. #he union members committed acts of disloyalty. 1hen members see' the destruction of the organi$ation to which they belong, they forfeit their right to remain as members. #/anduay .istillery -nion vs. *LRC' #. Doe! t(e e3piration o t(e C+A prec%ude t(e di!5i!!a% o t(e 'ui%ty union5e5$er!B 9o. #he e%piration of the C4A did not cleanse from them from the acts of disloyalty. #hey committed such acts while the C4A was in force. A&d.B :. I t(e act o di!%oya%ty 8a! co55itted durin' t(e I reedo5 periodJ, cou%d t(e union !ecurity c%au!e !ti%% $e en orcedB 9o. #he re(uirement for union members to maintain their membership is good standing ceases to be binding during the F,-day freedom period immediately preceding the e%piration of the C4A. A&d.B G. O union has a C4A with = Co., containing a maintenance of membership clause. )ue to the refusal of M to 5oin it, O demanded the dismissal of M pursuant to the clause. &s this valid2 9o. #he maintenance of membership clause only applies to EEs who are members of the contracting union at the time of the e%ecution of the C4A and to those who may thereafter on their own volition 5oin the union. #Alcantara' <.< @inancia% Security 1 A'ency S(op Art. 2/- / EEs of an appropriate collective bargaining unit who are not members of the recogni$ed collective bargaining agent may be assessed a reasonable fee e(uivalent to the dues and other fees paid by members of the recogni$ed collective bargaining agent, if such non-union members accept the benefits under the C4A. #he individual authori$ation re(uired under Art. 0:0 of this Code shall not apply to the nonmembers of the recogni$ed collective bargaining agent. <.J Lia$i%itie! o Union and ER Liability of 0nion to -ay Wages and /ringe 5enefits of 2llegally Dismissed EE 1here the E" compelled the EE to go on forced leave upon recommendation of the union for alleged violation of the EE of the closed shop agreement, the union is the party liable to pay the wages and fringe benefits which the EE failed to receive. #he E" would not have compelled the EE were it not for the unions insistence. #Manila Mandarin 7s -nion vs. *LRC' ER in 'ood /aith not Liable 1here the E" dismissed his EEs in the belief in good faith that such dismissal was re(uired by the closed shop provisions of the C4A with the union, he may not be

48 ordered to pay bac' compensation to such EEs although their dismissal is illegal. #*L- vs. Cip :enetian 4lind' Section < " Union Concerted Acti&itie! J.. +a!i! o Ri'(t to En'a'e in Concerted Acti&itie! Art. 24# / 1or'ers shall have the right to engage in concerted activities for purposes of collective bargaining or for their mutual benefit and protection. #he right of legitimate labor organi$ations to stri'e and pic'et and of E"s to loc'out, consistent with national interest shall continue to be recogni$ed and respected. -olicy &tatement &n line with the policy of the State to encourage free trade unionism and free collective bargaining, wor'ers shall have the right to engage in concerted activities for purposes of collective bargaining or for mutual benefit and protection. A similar right to engage in concerted activities for mutual benefit and protection is tacitly and traditionally recogni$ed in respect of E"s. #Ila8 at 4u)lod ng Manggaga8a vs. *LRC' J.0 Stri7e Acti&ity 1. De ine a !tri7e. &t is a temporary stoppage of wor' by the concerted action of EEs as a result of an industrial or labor dispute. A Art. 212B A valid stri'e needs a labor dispute. #A"ucena' ?Labor dispute ! Any controversy or matter concerning terms and conditions of employment or the association of representation of persons in negotiation, fi%ing, maintaining, changing or arranging the terms and conditions of employment, regardless of whether or not the disputants stand in the pro%imate relations of E"s and EEs. AArt. 212B 0. 7ruit Canning Co. has been re(uiring wor'ers to render overtime wor' of G hours everyday for the past F months. )ue to the refusal of the E" to stop this practice, all the EEs refused to wor' overtime and left the plant after wor'ing < hours during the day. #hey reported for the regular wor' schedule the following morning. &s this a stri'e2 =es. &t is a temporary stoppage of wor' by the concerned action of the EEs by reason of a labor or industrial dispute. A labor dispute includes any controversy or matter concerning terms and conditions of employment. #Alcantara' +. #he EEs due to a dispute involving wages wor'ed for only < hours a day instead of ., hours in accordance with a practice which had been followed for G years. &s the refusal of the wor'ers to adhere to the .,-hours wor' schedule a stri'e2 =es. &t is a limited or partial stri'e. A&d.B +ature and -urpose A stri'e is coercive activity resorted to by laborers to enforce their demands. #he idea behind a stri'e is that a company engaged in a profitable business cannot afford to have its production or activities interrupted, mush less, paraly$ed. 4ecause of this threat or danger of loss, the company gives in to the demand of the stri'ers, 5ust so it can maintain continuity in production. #Philippine Can Co!pany vs. CIR'

49 Effect of Wor) Relationship EEs who go on stri'e do not (uit their employment. &t is a mere temporary stoppage of wor'. #he declaration of a stri'e does not amount to renunciation of the employment relation. #he relationship of E" and EE continues. #Rex /axi vs. CIR' )uring a stri'e, the E"-EE relationship is not terminated but merely suspended as the wor' stoppage is not permanent but only temporary. #he EEs status during a stri'e remains but the effects of employment are suspended, hence, a stri'ing EE, as a rule, is not entitled to his wage during a stri'e. #A"ucena' A"oidance of &tri)es 1. 3acific measures must first be e%hausted before stri'es are to be declared. Stri'es and other coercive means of settling the dispute are deemed 5ustified only when peaceful alternatives have proved unfruitful in settling the dispute. #P@ILMAR1A vs. CIR' 0. #he union sent demands for the dismissal of a foreman on grounds that he maltreated an EE. #he company refused to dismiss the foreman but reopened his case in the fiscals office. 4ecause of the companys refusal, the union went to stri'e. &s the stri'e legal2 9o. #he demand for the dismissal had been accorded the attention it merited. #*Lvs. CIR' -rotection of &tri)e 6(at are t(e 'enera% protection! o t(e ri'(t to !tri7eB #he right to stri'e is given the following protections/ .. &t is generally not sub5ect to labor in5unctions or restraining order. A Art. 22/B 0. EEs may not be discriminated against merely because they have e%ercised the right to stri'e. AArt. 2/-B +. #he use of stri'e brea'ers is prohibited. AArt. 24/B J.+ Type!, C(an'e! and Con&er!ion ) Stri7e! Definitions 1. De ine an econo5ic !tri7e ! &ntended to forge wage and other concessions from the E", which is not re(uired by law to grant. #Consolidated Labor Association vs. Mars!an' Also 'nown as bargaining stri'es. 2. De ine un air %a$or practice !tri7e ! Called against the unfair labor practices of the E", usually for the purpose of ma'ing him desist from further committing such practices. #A"ucena' +. De ine !y5pat(etic !tri7e ! *ne in which the stri'ing EEs have no demands or grievances of their own, but stri'e for the purpose of property of directly or indirectly aiding others, without direct relation to the advancement of the interest of the stri'ers. A&d.B /. 6(at are t(e te!t! in deter5inin' t(e e3i!tence o an un air %a$or practice !tri7eB #here are two tests in determining the e%istence of an unfair labor practice stri'e/

50 a. *b5ectively, when the stri'e is declared in protest of unfair labor practice which is found to have been actually committedD b. Sub5ectively, when a stri'e is declared in protest of what the union believed to be unfair labor practices committed by management, and the circumstances warranted such belief in good faith although subse(uently as not committed. A&d.B &t is not re(uired that there be as such in fact unfair practice committed by the E". &t suffices if such a belief in good faith is entertained by labor as the inducing factor for staging a stri'e. #Shell 1il 6or)ers -nion vs. Shell' Piolations of C4As e%cept flagrant andCor malicious refusal to comply with its economic provisions and shall not be considered unfair labor practice and shall be stri'eable. #Sec. >A Rule BIIIA 4oo) :A IRR7s' (hange in 1ype An economic stri'e may be converted into an unfair labor practice stri'e, as when a stri'e for greater benefits is called off in anticipation of negotiations and eventual agreement but is resumed upon the commission by the E" of acts of discrimination against the leaders of the stri'e. #Consolidated Labor Association vs. Mars!an' +on,(on"ersion 3&tri)e to Loc)out A stri'e is not converted into a loc'out by the filing of notice of offer to return to wor' during pendency of dispute. #Ri"al Ce!ent 6or)ers -nion vs. CIR' &ympathetic &tri)e 4ecause a valid stri'e presupposes a labor dispute, it follows that a sympathetic stri'e is illegal. #A"ucena' J.: Loc7out Definition De ine a %oc7out / Loc'out means that temporary refusal to any E" to furnish wor' as a result of an industrial or labor dispute. A Art. 212B &t is an E"s act e%cluding EEs who are union members from his business and factory premises. #Sta. Mesa Slip8ays vs. CIR' A valid loc'out needs a labor dispute. #A"ucena' ?Labor dispute ! Any controversy or matter concerning terms and conditions of employment or the association or representation of persons in negotiating, fi%ing, maintaining, changing or arranging the terms and conditions of employment, regardless of whether or not the disputants stand in the pro%imate relation of E"s and EEs. A Art. 212B +ature and -urpose Loc'out is recogni$ed as a valid weapon of management in collective bargaining. &t may be declared to bring pressure upon the union, where a impasse has arisen during bargaining negotiations or where the union commits unfair labor practices, sub5ect to statutory re(uirements. #A"ucena' Effect of Wor) Relationship Stri'e and loc'out are similar in the sense that they connote temporary stoppage of wor'. #he relationship of E" and EE continues. A&d.B

51

J.G Le'a%ity o Stri7e or Loc7out 6(at are t(e 4 actor! a ectin' t(e %e'a%ity o !tri7e or a %oc7outB An illegal stri'e or loc'out is one which / .. &s contrary to a specific prohibition of lawD 0. Piolates a specific re(uirement of lawD +. )eclared for an unlawful purpose :. Employs unlawful meansD G. )eclared in violation of an e%isting in5unctionD 6. Contrary to an e%isting agreement #A"ucena' (ontrary to &pecific -rohibition of La Hovernment EEs have the right to organi$e but they do not have the right to stri'e. Since the terms and conditions of government EEs are fi%ed by law, government wor'ers cannot use the same weapons employed by wor'ers in the private sector to secure concessions from their EEs. #SS A vs. CA' -rocedural Re.uirements A+! (! &6! BC 6(at are t(e procedura% reAui!ite! or a !tri7e to enHoy t(e protection o %a8B .. A notice of stri'e or loc'out with the re(uired contents, should be filed with the )*LE, specifically the regional branch of the 9ational Conciliation and 6ediation 4oard, copy furnished the E" or the union, as the case may be. A Art. 24#B 0. A cooling !off period must be observed i.e. a time gap is re(uired to cool off tempers between the filing of notice and the actual e%ecution of the stri'e or loc'outD the cooling off period is +, days in case of bargaining deadloc' and .G days in case of unfair labor practice. ;owever, in cases of dismissal from employment of union officers duly elected in accordance with the union constitution and by-laws, which may constitute union busting where the e%istence of the union is threatened, the cooling off period need not be observed. A&d.B +. )uring the cooling-off period, the 9C64 mediates and conciliates the parties. #hey are not allowed to do any act which may disrupt or impede the early settlement of the dispute. A part of their duty to bargain, they are obliged to participate fully and promptly in the 9C64 meetings. A&d.B :. 4efore a stri'e or loc'out may actually be started, a stri'e vote or loc'out vote should be ta'en by secret balloting, with 0:-hour prior notice to the 9C64. #he decision to declare a stri'e re(uires the secret ballot approval of the ma5ority of the total union membership in the bargaining unit concerned. Similarly, a loc'out needs the secret ballot concurrence of ma5ority of the directors or partners. A&d.B 5. #he result of the stri'e or loc'out vote should be reported to the 9C64 at least I days before the intended stri'e or loc'out, sub5ect to the cooling off period. A&d.B #his is intended to give the )*LE an opportunity to verify whether the pro5ected stri'e or loc'out really carries the imprimatur of the ma5ority of union members or board of directors, as the case may be. A stri'e or loc'out held within I-day waiting period is plainly illegal. #Lapanday 6or)ers -nion vs. *LRC' F. 9o stri'e or loc'out may be declared on grounds involving inter-union and intraunion disputes. A&d.B

52 7. 9o stri'e or loc'out shall be declared without the labor organi$ation or the E" first having bargained collectively i.e. e%haustion of grievance procedure before declaration of stri'e. #Art. $%=' 8. 9o stri'e or loc'out shall be declared after assumption of 5urisdiction by the 3resident of the Secretary of Labor. #Art. $%&' 9. 9o stri'e or loc'out shall be declared after certification or submission of the dispute to compulsory or voluntary arbitration, nor may a stri'e or loc'out be declared during the pendency of cases involving the same grounds for the stri'e or loc'out. #A"ucena' 10. 9on-observance of procedural re(uirement ma'es stri'e illegal. #*FS6 vs. 1ve0era' Economic and 0nfair Labor -ractice &tri)e .. 1he Labor (ode recognizes only t o "alid grounds for the declaration of a stri)e. #he 0 are / a. collective bargaining deadloc'D and b. E"s unfair labor practice. A stri'e not based on any of these 0 causes is necessarily tainted with illegality. #A"ucena' 2. 6(en doe! a dead%oc7 ari!eB A deadloc' arises when there is an impassS which presupposes reasonable effort at good faith bargaining which, despite noble intentions, does not conclude the agreement between the parties. 1here for instance, the E" never made any serious efforts to respond to proposals from the union, it cannot be maintained that a deadloc' arose. #.ivine 6ord -niversity vs. Secretary of Labor' 3. Legality of stri'e is not dependent upon the ability of management to grant demands. &f said demands cannot be granted for being un5ust or unreasonable, the only conse(uence should be their re5ection and not the punishment of the wor'ers who presented them. #Caltex vs. PL1' 9i&e !o5e e3a5p%e! o !tri7e (a&in' a %a8 u% purpo!e. .. Stri'e incident to collective bargaining. A&d.B 2. Self-defenses i.e. stri'e held against the formation of a company dominated union. #.avao Free 6or)ers vs. CIR' 3. Stri'e against E"s unfair labor practice. #Ca!boanga 6ood Products vs. *LRC' 4. 8nfair labor practice stri'e in good faith, although such acts by the E" were not found to be unfair labor practices. #Pepsi5Cola Labor -nion vs. *LRC' 5. Stri'e to compel recognition of and bargaining with ma5ority union. #Caltex Filipino Managers and Supervisors Association vs. CIR' ?;owever, a stri'e for union recognition is through a certification election. #A"ucena' 9i&e !o5e e3a5p%e! o !tri7e! 8it( no %a8 u% purpo!e!" 1. Stri'e due to rearrangement of office. #Reliance Surety vs. *LRC' 2. Stri'e due to companys sales evaluation policy #2/ .irectories vs. Sanche"'

53 3. Stri'e to compel removal of an EE not due to violation of union security arrangement. #A"ucena' 4. Salary distortion under the 1age "ationali$ation Act #I4M vs. *LRC' 5. &nter-union or intra-union dispute. #Art. $%&' 6. Stri'e to compel company to produce ban' statements to show actual financial condition of the company. 1hat the union may only re(uire are up-to-date financial information normally submitted to relevant government agencies such as balance sheets and financial statements. #Sec. ,A Rule BIIIA 4oo) :A IRR7s' $eans and $ethods 1. Even if the purpose of a stri'e is valid, the stri'e may be held invalid where the means employed are illegal. #-nited Sea!en7s -nion of the Philippines vs. .avao Shipo8ners Association' #he use of violence, intimidation, restraint or coercion in carrying out concerted activities, which are in5urious to the rights of property, or to particular individuals ma'e a stri'e illegal. #Liberal Labor -nion vs. Phil. Can Co.' ;owever, minor disorders will not suffice to ma'e a stri'e illegal #Insular Life 7s Assn.vs. Insular Life' 0. #he stri'e by a union in a gasoline company was attended with violence in : or G occasions. #he stri'e is sought to be declared illegal on grounds that it was attended by violence. &s this allegation tenable2 &t depends on the factual circumstance of the case. &f the acts of violence are not pervasive, and the responsibility for the acts are individual, then the stri'e may be considered still legal. #Shell 1il 6or)ers -nion vs. Shell' +. &f some management officials were unable to leave the premises because of a stri'e, may the stri'ers be held guilty of illegal detention2 9o. #he detention was not done in criminal intent. 1hile no doubt to be deplored, such conduct cannot be made a basis for a finding of criminal guilt. #People vs. 4arba' 2n7unction A. RULE ON INFUNCTIONS As a general rule, labor disputes are not sub5ect to in5unction. ;owever, the protective force of the law will be applied when prohibited or unlawful acts are being or about to be committed that will cause grave or irreparable damage to the complaining party. #A"ucena' 4. RECUIREMENTS O@ >ALID INFUNCTION Art. 21- " .. 8nlawful acts are being committed or threatened to be committed. 0. #he act, if not en5oined or if not performed forthwith, may cause grave or irreparable damage. +. 1itnesses must be heard an opportunity for cross-e%amination provided. :. #he complaint is made under oath.

54 G. As to each item of relief, the in5ury to the complainant will be greater by its denial than to defendant by its grant. F. Complainant has no ade(uate remedy at law. I. 3ublic officers are unwilling or unable to do their duty to ade(uately protect complainants property. C. TEMPORARY RESTRAININ9 ORDER #he Code allows the issuance of a temporary restraining order without prior notice to other parties concerned. #he issuance is predicated on complainants testimony or petition under oath that unless the order is issued without notice, substantial or irreparable in5ury to complainants property will be unavoidable. A temporary restraining order, however, automatically e%pires after 0, days. A&d.B ). FURISDICTION TO ISSUE INFUNCTION Lies not with the regular courts but with the Commission. #Maria Cristina Fertili"er Plant 7s Assn. :s. /andayag' ;owever, regular courts may issue in5unction if it is to prevent stri'ers from preventing to lawful movement of + rd parties. #Republic Flour Mill 6or)ers Assn. vs. Reyes' E. INFUNCTION IN NATIONAL INTEREST CASES 1hen is a stri'e en5oined by the assumption of 5urisdiction of the president or the Secretary of Labor and Employment2 A stri'e or loc'out is prohibited after assumption of 5urisdiction by the 3resident or the Secretary of Labor / .. in industries indispensable to the national interestD or 2. after certification or submission of the dispute to compulsory or voluntary arbitration. AArt. 24/B #he Code vests the 3resident and the Secretary of Labor almost unlimited discretion as to what industries may be considered indispensable to national interest. #A"ucenaB E.. Po8er to A!!u5e Furi!diction Con!titutiona% Art. 24# and 24/ have been enacted pursuant to the police power to the State. &t is an inherent power of the State which does not need to be e%pressly conferred by the Constitution. #-nion of Filipro 7s vs. *estle' E.0 Certi ication o La$or Di!pute " Auto5atic InHunction Such assumption of the Secretary or certification to the 9L"C for compulsory arbitration has the effect of automatically en5oining the intended or ongoing stri'e or loc'out as specified in the assumption or certification order. #A"ucena' #heir assumption or certification order is immediately effective even without a return-to-wor' order. #-nion of Filipro 7s vs. *estle' A stri'e that is underta'en despite the issuance by the Secretary of Labor of an assumption or certification order becomes a prohibited activity and thus illegal. #Ca!boanga 6ood Products vs. *LRC' 9ot only union officers but also union members who defy return-to-wor' order are sub5ect to dismissal for participation in an illegal act. #St. Scholastica7s College vs. /orres' E.# E ect o Certi ication or Co5pu%!ory Ar$itration

55 #he certification for compulsory arbitration overrides under unresolved proceedings before the 9L"C. 3roceedings in the in5unction and unfair labor practice cases filed by the E" necessarily have to be suspended to await the outcome of the compulsory arbitration proceedings. #4agong 4ayan Realty vs. 1ple' E./ Incidenta% I!!ue! 6ay the Secretary of Labor, in the e%ercise of his 5urisdiction under Article 0F+ AgB ta'es cogni$ance which is merely incidental to the labor dispute over which he has assumed 5urisdiction2 =es, provided said issue in involved in the labor dispute itself or otherwise submitted to him for resolution. #St. Scholastica7s College vs. /orres' Agreement of the -arties 1. A no stri'e prohibition in a C4A is applicable only to economic stri'es. An unfair labor practice stri'e is not covered and wor'ers may go on stri'e based on the unfair labor practice despite the no-stri'e provision. #Master Iron Labor -nion vs. *LRC' 2. 2s no,stri)e clause binding on the ne ly certified bargaining agent# 9o. #his is a personal underta'ing of the old certified bargaining agent which does not bind the newly certified bargaining agent. #4enguet Consolidated vs. 4CI 7s -nion' 3. #here is no violation by the union of the no-stri'e clause if the wor' stoppage was not initiated or supported by the union. #A"ucena' :. About .,:,, EEs of a company staged a mass wal'-out. #he stri'e was staged without prior notice and in violation of the no-stri'e clause. &t is not however disputed that the company did not pay the salaries of the EEs for 0 months. &n the e%ercise of his power of compulsory arbitration, may the Secretary of Labor declare the stri'e illegal2 Even on the assumption that the illegality of the stri'e is predicated on its violation of the lac' of notice of stri'e and the no-stri'e clause, still the automatic finding of the illegality of stri'e finds no authoritative support in the light of the attending circumstances. #4acus vs. 1ple' <.4 E5p%oy5ent o Stri7e $rea7er! and Ro%e o Peace O icer! durin' Stri7e! Art. 24/ " .. 9o E" shall use or employ any stri'e-brea'er, nor shall any person be employed as a stri'e-brea'er. 0. 9o public official or EE including officers and personnel of the A73 or the 393, or armed person, shall bring in, introduce or escort any individual who see's to replace stri'ers in entering or leaving the premises of a stri'e are, or wor' in place of stri'ers. #he police force shall 'eep out of the pic'et lines unless actual violence or other criminal acts occur. <.= I5pro&ed O er +a%%otin' 6(at i! 5eant $y i5pro&ed or reduced o er $a%%otin'B .. Stri7e ! &n an effort to settle a stri'e, the )*LE shall conduct a referendum by secret balloting on the improved offer of the E" on or before the +, th day of the stri'e. 1hen at least a ma5ority of union members vote to accept the improved

56 offer, the stri'ing wor'ers shall immediately return to wor' and the E" shall thereupon readmit them upon signing of the agreement. 0. Loc7out ! &n case of a loc'out, the )*LE shall also conduct a referendum by secret balloting on the reduced offer of the union on or before the +, th day of the loc'out. 1hen at least a ma5ority of the board of directors or trustees or the partners holding the controlling interest in the case of partnership vote to accept the reduced offer, the wor'ers shall immediately return to wor' and the E" shall thereupon readmit them upon signing of the agreement. A Art. 242B <.- Pic7etin', S%o8do8n and ot(er Concerted Acti&itie! A. DE@INITION De ine pic7etin' ! 1al'ing or patrolling in the vicinity of a place of business involved in a labor dispute and, by word of mouth, banner or placard, underta'ing to inform the public concerning the dispute. 3ic'eting includes stationing persons at the site of the labor dispute for the purpose of e%ercising coercion or intimidation on other. ;owever, the re(uirement of the law is that the pic'et must be a moving pic'et. #A"ucena' +. PICKETIN9 AND LI+EL LA6S #he mere fact that the language employed by the pic'eters is far from being courteous and polite does not give rise to a cause for libel and damages. #PCI4 vs. Philnaban) 7s Assn.' C. ER)EE RELATIONS:IP Absence of an E"-EE relationship does not ma'e pic'eting illegal. #.e Leon vs. *L-' D. RESTRICTIONS .. Art. 24/ / 9o person engaged in pic'eting shall commit any act of violence, coercion or intimidation or obstruct the free ingress to or egress from the E"s premises for lawful purposes, or obstruct public thoroughfares. 2. A pic'eting labor union has no right to prevent EEs of another company from getting in and out of its rented premises, otherwise it will be held liable for damages against an innocent by-stander. #Li8ay8ay vs. Per!anent Concrete 6or)ers -nion' 3. 3ic'eting as a concerted activity is sub5ect to the same limitations as stri'e, particularly as to lawful purpose and lawful means. Li'e the freedom of e%pression in general, it has limits. #hus, to the e%tent that it is an instrument of coercion rather than of persuasion, it cannot rightfully be entitled to the protection associated with free speech. #Security 4an) 7s -nion vs. Security 4an)' E. PRO:I+ITED ACTI>ITIES Art. 24/ / 9o person shall obstruct, impede or interfere with by force, violence, coercion, threats or intimidation any peaceful pic'eting by EEs during any labor controversy or in the e%ercise of the right of self-organi$ation or collective bargaining, or shall aid or abet such obstruction or interference. @. PO6ER O@ COURTS TO CON@INE PICKETIN9

57 1hile peaceful pic'eting is entitled to protection as an e%ercise of free speech, courts are not without power to confine or locali$e the sphere of communication or the demonstration to the parties to the labor dispute, including those with related interest, and to insulate establishments or persons with no industrial connection or having interest totally foreign to the conte%t of the dispute. #PAFL- vs. Cloribel' S%o8do8n 1. )efine slowdown. 6ethod by which ones EEs, without see'ing a complete stoppage of wor', retard production and distribution in an effort to compel compliance by the E" with the labor demands made upon by him. #A"ucena' 2. Slowdown is considered inherently illicit and un5ustifiable because while the EEs continue to wor' and remain at their positions and accept wages from them, they at the same time select what part of their allocated tas' they care to perform of their own volitions or refuse openly or secretly to the E"s damage to the other wor'. #I4M vs. *LRC' +oycott .. De ine $oycott / &t is the concerted refusal to patroni$e an E"s goods and services and to persuade others to a li'e refusal. A&d.B 2. I! a $oycott %a8 u%B EEs may lawfully e%ert economic pressure on their E" by means of a boycott, provided they act peaceably and honestly. #Alcantara' J.J Con!eAuence! o Concerted Action! Stri7er! Retention or Lo!! o E5p%oy5ent Doe! participation in a !tri7e 5ean %o!! o e5p%oy5ent or t(e 8or7erB A mere participation of a wor'er in a lawful stri'e shall not constitute sufficient ground for termination of his employment, even if a replacement had been hired by the E" during such lawful stri'e. AArt. 24/B Do e"er! if the stri)e is illegal.: .. #he union officer who 'nowingly participated in an illegal stri'eD and 0. Any wor'er or union officer who 'nowingly participates in the commission of illegal acts during a stri'e may be declared to have lost their employment status. An ordinary stri'ing wor'er cannot be terminated for mere participation in an illegal stri'e. #here must be proof that he committed illegal acts during a stri'e. #I*P1R/ vs. *LRC' 6(o Dec%are! Lo!! o E5p%oy5ent Statu! #he law grants the E" the option of declaring loss of employment status. A&d.B No @inancia% A!!i!tance to Di!5i!!ed Stri7er! 7inancial assistance is not re(uired to be given to a wor'er who participated in an illegal stri'e. #Chua vs. *LRC' Stri7e on 9ood @ait( +e%ie t(at Co5pany Co55itted Un air La$or Practice Stri'ers who conducted an illegal stri'e on the good-faith belief that the company had committed unfair labor practice, which turns out to be false, do not forfeit their employment. #hey are entitled to reinstatement. #Ferrer vs. CIR'

58

Stri7e not Mar7ed 8it( 9ood @ait( Stri'ers who conducted a stri'e which is illegal and not mar'ed with good faith forfeit their employment. #Reliance Surety vs. *LRC' App%ication o t(e -ari,Delicto Ru%e I! t(e pari,delicto ru%e app%ica$%e in !tri7e! and %oc7out!B =es. 1hen the parties are in pari delicto ! the EEs having staged an illegal stri'e and the E" having declared an illegal loc'out ! such situation warrants the restoration of the status quo ante and brining bac' the parties to their respective positions before the illegal stri'e and illegal loc'out through reinstatement, without bac'wages, of the dismisses EEs. #Philippine Inter5Fashion vs. *LRC' 5ac) ages 1. &n an economic stri'e, the stri'ers are not entitled to bac'wages on the principle that a fair days wage accrues only for a fair days labor. A SM+ &!. NLUB 7or an unfair labor practice stri'e, the right of the wor'ers to receive bac'pay depends on whether they are voluntary or involuntary stri'ers. &f they are involuntary stri'ers, they are entitled to bac'pay. #Macleod vs. Progressive Federation of Labor' ;owever, when they are voluntary stri'ers, that is, they were not discriminatorily dismissed by the E", then they are generally not entitled to bac'pay, e%cept when they voluntary offer to return to wor' and the E" refuses to readmit them. #Cro!8ell 7s Assn. vs. CIR' 0. Are EEs who are unable to wor' by reason of a loc'out validly declared by the E" entitled to wages corresponding to the period of the loc'out2 9o. #he refusal of the E" to furnish wor' is unlawful. And since the EEs did not render any service, they should not get paidD this in accordance with the no wo' no pay rule. #Alcantara' ER%s Right to Dire Replacement during &tri)e Discuss the principles go"erning the hiring of or)er replacements during a stri)e# )uring the pendency of an economic stri'e, the E" may hire replacements on a permanent basis and is not bound to discharge such permanent replacements in the event that the stri'ers decide to resume their employment. #Consolidated Labor Assn. vs. Mars!an' *n the other hand, while replacements may also be hired by the E" to ta'e the places left vacant by the EEs engaged in unfair labor practice stri'e, such replacements are not permanent and the E" under a duty to dismiss them as soon as the stri'ers re(uest reinstatement in their previous position. #Insular Life 7s Assn. vs. Insular Life' Damages 8nion officers may not be vicariously held liable for illegal act of stri'ers. #he rule of vicarious liability no longer applies. #4enguet Consolidated vs. 4CI 7s Assn.' Section 1?. Re5edie! 6(at are t(e di erent re5edie! a&ai%a$%e in %a$or di!pute!B .. 9rie&ance procedure ! &n ad5ustment of complaint following steps prescribed in the C4A or company policy.

59 0. Conci%iation ! 3rocess where a disinterested + rd party meets with management and labor, at their re(uest or otherwise, during a labor dispute or in collective bargaining conferences, and by cooling tempers, aids in reaching an agreement. +. Mediation ! A +rd party studies each side of the dispute then ma'es proposal for the disputants to consider, but a mediator cannot render an award. :. En orce5ent or co5p%iance order ! An act of the Secretary of Labor in the e%ercise of his visitorial or administrative authority to enforce labor laws, polices, plans, programs, rules and regulations. G. Certi ication o $ar'ainin' repre!entati&e! ! )etermination of which union shall represent EEs in collective bargaining. #his is handled by 6ed-Arbiters of )*LE. F. Ar$itration ! #he submission of a dispute to an impartial determination on the basis of impartial evidence and arguments of the parties. I. A!!u5ption o Huri!diction ! An authority vested by law to the Secretary of Labor or the 3resident to decide a dispute causing or li'ely to cause a stri'e or loc'out in an industry indispensable to the national interest. <. Certi ication to NLRC ! An action of the Secretary of Labor empowering the 9L"C to compulsorily arbitrate a dispute causing or li'ely to cause a stri'e or loc'out in an industry indispensable to the national interest. J. InHunction ! An e%traordinary remedy and is not favored in labor law. As a general law, an in5unction or a restraining order to prevent or stop the doing of an act is avoided in resolving a labor dispute because the state policy and aim is to encourage the parties to use the non-5udicial processes of negotiation and compromise, mediation and arbitration. .,. Fudicia% action ! Complaint with regular court in cases falling under its 5urisdiction i.e. criminal case of unfair labor practice. ... Appea% ! 3rocess by which an order, decision or award is elevated to a higher authority, on specified grounds, so that the order, decision or award may be modified or set aside and a new one issued. .0. Fudicia% re&ie8 ! 9o law allows appeal from decision of the Secretary of Labor or of the 9L"C, or of a voluntary arbitrator. &n these cases, the special civil action of certiorari, prohibition and mandamus may be lodged with the Supreme Court. 13. Co5pro5i!e !ett%e5ent ! &n any stage of these settlement processes, the labor dispute may be resolved by the parties through a compromise agreement, provided the agreement is freely entered into and is not contrary to law, moral or public policy. #A"ucena' 1hat cases fall under the e%clusive and original 5urisdiction of labor arbiters2 La$or ar$iter! !(a%% (a&e e3c%u!i&e and ori'ina% Huri!diction to (ear and decide 8it(in #? 8or7in' day! a ter !u$5i!!ion o t(e ca!e $y t(e partie! or deci!ion 8it(out e3ten!ion t(e o%%o8in' ca!e! in&o%&in' a%% 8or7er!, 8(et(er a'ricu%tura% or non)a'ricu%tura% " .. 8nfair labor practices. 0. #ermination disputes.

60 +. &f accompanied with a claim for reinstatement, those cases that wor'ers may file involving wages, rates of pay, hours of wor' and other terms and conditions of employment. :. Claims for actual, moral and e%emplary and other forms of damages arising form the E"-EE relations. G. Cases arising from any violation of Art. 24/ of this Code, including (uestions involving the legality of stri'es and loc'outs. F. E%cept claims for EEs compensation, social security, medicare and maternity benefits, all other claims arising from E"-EE relations, including those of persons in domestic or household service, involving an amount e%ceeding 3G,,,,.,, whether or not accompanied with a claim for reinstatement. Doe! !er&ice o notice o (earin' upon re!pondent con er Huri!diction o t(e or5erB 9o. 9otices of hearings are not summonses. &n the absence of service of summons or a valid waiver thereof, the hearings and 5udgment rendered by the Labor Arbiter are null and void. #Lar)ins vs. *LRC' Do %a$or ar$iter! (a&e Huri!diction to (ear and decide c%ai5! or da5a'e! ari!in' ro5 un air %a$or practice!B =es. #he civil aspects of all cases involving unfair labor practices, which may include claims for actual, moral, e%emplary and other forms of damages, attorneys fees and other affirmative reliefs, shall be under the 5urisdiction of the labor arbiters. #Art. $=+' Doe! t(e Re'iona% Director o t(e DOLE (a&e Huri!diction to (ear and decide 5oney c%ai5! o 8or7er!B =es. ;e is empowered through summary procedure, to hear money claims and benefits, including legal interest, owing to a househelper provided the complaint does not include a claim for reinstatement and the aggregate money claims of each EE or househelper does not e%ceed. #Art. >$F' :o8 are di!pute! ari!in' ro5 8a'e di!tortion! !ett%edB 1hen there is a C4A, through the grievance procedure and, if it remains unresolved, through voluntary arbitration. 1hen there is no C4A, the dispute shall be settled through the 9C64 and, if it remains unresolved after ., calendar days of conciliation, shall be referred to the appropriate branch of the 9L"C. #Art. >$=' Ca!e! not a%%in' under t(e Huri!diction o %a$or ar$iter!" 1. Civil action to collect sum of money owed by the EE to the E". #2eorg 2ort0ah! vs. Isnani' 2. Action for damages for breach of contractual stipulations. #.ai5Ichi lectronis vs. :illara!a' 3. #ortious acts by the president of a company against EEs. #Medina vs. 4artolo!e' 4. "eplevin case to recover fishing vessel from stri'ing crew members. #4asaya vs. Militante' 5. Civil case to annul the public auction sale of several properties of the E" used to pay liabilities to the EEs on the ground that the properties were owned by + rd parties. #Manligue" vs. CA' &n contrast to the Pucan vs. 4eng"on case, what was being (uestioned was not the writ of e%ecutions issued by the )*LE but the ownership over the property in (uestion. #Alcantara' 6. Suit filed by an independent contractor. #Cabe vs. /u!ang'

61 7. &ntra-company disputes. #.y vs. *LRC' Ca!e! a%%in' under t(e Huri!diction o t(e %a$or ar$iter!" 1. Legality of stri'es and loc'outs. #Sa!ahang Manggaga8a ng Liberty Co!!ercial Center vs. Pi!entel' 2. Suit for damages from pic'eting that accompany a stri'e. #*FL vs. is!a' 3. Complaint arising from implementation of union security clause. #Sanyo Philippines 6or)ers -nion vs. Cani"ares' May an i%%e'a%%y di!5i!!ed EE !ti%% i%e a ci&i% ca!e or tort a'ain!t t(e ER i (e 8a! a%ready a8arded da5a'e! in t(e i%%e'a% di!5i!!a% ca!e t(at (e i%ed 8it( t(e %a$or ar$iterB 9o. #he 5udgment of the labor arbiter granting the illegally dismissed EE separated pay operated as a bar to his subse(uent action for a tort against the E" if he was already awarded damages in the illegally dismissed EE separation pay operated as a bar to his subse(uent action for the recovery of damages before the regular court under the doctrine of res judicata. #Pri!ero vs. IAC' In (i! co5p%aint 8it( t(e %a$or ar$iter or i%%e'a% di!5i!!a%, A !ou'(t pay5ent or (o%iday pay and t(e 1# t( 5ont( pay and (o%iday pay e&en i (e did not pro&e t(at (e 8a! paid t(e!e $ene it!B =es. #he claimants allegation which need not be supported by evidence unless it is an essential part of the cause of action. #he burden of proving that payment of said benefits have been made rests with the E". #Seaborne Carriers vs. *LRC' May t(e %a$or ar$iter increa!e t(e ori'ina% a8ard it 5ade a ter it! deci!ion 8a! rendered ina% and e3ecutory $y a di!5i!!a% o t(e NLRC o an appea% 8it( re!pect to t(e !aid ca!eB =es. #he bac'wages merely correspond to the period of dismissal when the case was originally heard by the labor arbiter. "ecomputation is necessary to arrive at a 5ust and proper determination of the monetary awards. #Industrial /i!ber vs. *LRC' May t(e %a$or ar$iter adHudicate on c%ai5! not a%%e'ed in t(e co5p%aintB =es, provided the claims are made in the complaints position paper. 4ut claims for wage differentials are not made in the complaint or in the position paper cannot be passed upon. #.4P vs. *LRC' May t(e %a$or ar$iter decide t(e ca!e on t(e $a!i! o a !upp%e5enta% po!ition paper !u$5itted a ter t(e partie! (a&e i%ed t(eir po!ition paper! and a'reed to con!ider t(e ca!e !u$5itted or t(e deci!ionB 9o. After submitting the case for decision, the parties shall not be allowed to allege facts not referred to and any cause of action not included in the complaint or position papers, affidavits and other documents. #Manebo vs. *LRC' Doe! t(e %a$or ar$iter (a&e Huri!diction o&er a c%ai5 o an EE o t(e SEA@DEC)ACD an internationa% or'ani*ationB

62 9o. 4eing an international organi$ation SEA7)EC-AL) en5oys functional independence and freedom from control of the state in whose territory its office is located. #S AF. C5AG. vs. *LRC' :o8 a$out FUSMA9B 9o. #he act of hiring cannot be considered a waiver of the foreign states immunity from suit. #;-SMA2 vs. *LRC' Doe! t(e Med)Ar$iter (a&e Huri!diction o&er inter)union con %ict!B =es. #he decision of the 6ed-Arbiter is appealable to the Secretary of Labor. #Pepsi Cola Sales and Advertising -nion vs. Secretary of Labor' May a %e'a%%y di!5i!!ed EE $e entit%ed to recei&e 5ora% and e3e5p%ary da5a'e!B =es, provided the dismissal is effected in an anti-social and oppressive manner. #Guisaba vs. Sta. Ines :eneer and Ply8ood' 6(at 5atter! a%%! under t(e e3c%u!i&e and ori'ina% Huri!diction o &o%untary ar$itrator! pro&ided or in a C+AB 8nresolved grievances arising from the/ .. &nterpretation or implementation of the C4A and those arising from the interpretation of enforcement of company personnel policiesD 0. &nterpretation and enforcement of company personnel policiesD and 3. All other disputes including unfair labor practices and bargaining deadloc's submitted to them by agreement of the parties. #Art. $%$' 6it(in 8(at period !(ou%d a co5p%aint or un air %a$or practice, i%%e'a% di!5i!!a% and 5oney c%ai5! $e i%ed 8it( t(e %a$or ar$iter!B 1. Un air %a$or practice ! . year from accrual thereof #Art. $F?' 2. I%%e'a% di!5i!!a% ! : years from accrual thereof #Art. >>=%A *CC' 3. Money c%ai5! ! + years form the time the cause of actions accrues #Art. $F>' 9i&e t(e e ect o t(e pendency o a 5oney c%ai5 $e ore t(e %a$or ar$iter on cri5ina% and ci&i% action! ari!in' ro5 or $a!ed on t(e !a5e cau!e o actionB 6oney claims shall be filed independently of the criminal action that may be instituted in the proper courts. 3ending the final determination of the merits of the money claims, no civil action arising from the same cause of action shall be filed with any court. #Art. $F$' Are t(e tec(nica% ru%e! o e&idence o%%o8ed in proceedin'! $e ore %a$or ar$iter!B 9o. #Art. $$>' May non)%a8yer! appear $e ore %a$or ar$iter!B 9on lawyers may appear before labor arbiters only if they represent themselves or their organi$ations or members thereof. #Art. $$$' 6(at are t(e 'round! !o t(at deci!ion! o %a$or ar$iter! are appea%a$%eB )ecisions of labor arbiters are appealable within ., calendar days to the 9L"C on the following grounds/

63 .. &f there is prima facie evidence of abuse of discretion on the part of the labor arbiter. 0. &f the decision, order or award was secured through fraud or coercion, including graft and corruption. +. &f made purely on (uestions of law. 4. &f serious errors in the findings of facts are raised which would cause grave or irreparable damage or in5ury to the appellant. #Art. $$&' :o8 i! appea% per ectedB 7iling by the appellant with the labor arbiter his memorandum of appeal, copy furnished the appellee, and the payment of the appeal within ., calendar days. #:ir5;en Shipping vs. *LRC' I! order o rein!tate5ent o a %a$or ar$iter !tayed $y an appea%B =es, for any information or date concerning any matter or (uestion relative to the ob5ect of the investigation. #Art. $>F' May t(e NLRC order t(e rein!tate5ent o 8or7er! 8(o did not appea% ro5 a deci!ion o t(e %a$or ar$iter orderin' pay5ent o !eparation pay in %ieu o rein!tate5ent!B 9o. An appellee who has not himself appealed cannot obtained from the appellate court below. #SMI Fish Industries vs. *LRC' I! t(e deci!ion o t(e NLRC appea%a$%e to t(e Secretary o La$or 2 9o. )ecisions of the 9L"C before the Supreme Court by means of a petition for certiorari. #Alcantara' May t(e NLRC con!ider e&idence !u$5itted or t(e ir!t ti5e on appea%B =es. #4ristol Laboratories vs. *LRC' Doe! t(e NLRC e3erci!e any ori'ina% Huri!dictionB =es. &n cases of labor disputes certified to it by the Secretary of Labor for compulsory arbitration and it can also entertain positions for in5unction. A&d.B I! PD 12?-, t(e Katarun'an' Pa5$aran'ay La8, app%ica$%e to %a$or ca!e!B 9o. #Montoya vs. scayo' 9i&e t(e !cope o &i!itoria% po8er! o t(e Secretary o La$or and E5p%oy5ent and re'iona% director! under Art. 12- o t(e La$or CodeB #he visitorial power provided for under Art. 12- is confined to chec'ing compliance with labor standard laws, then the regional director must order the necessary rectifications. ;owever, this does not include ad5udication of money claims clearly within the ambit of the labor arbiters authority under Art. 21= of the Labor Code. #1ng vs. Parel' I a party !u$5it! to t(e Huri!diction o a %a$or tri$una% and o$tain! an un a&ora$%e Hud'5ent, can %ater on Aue!tion t(e Huri!diction o t(e !aid tri$una%B 9o. 1hen a party has voluntarily submitted to the 5urisdiction of a court tribunal, he cannot later on, if he gets an unfavorable 5udgment adopt an inconsistent posture and attac' the latters 5urisdiction. #/i0a! vs. Sibonghanoy'

64 I! t(e rein!tate5ent a!pect o t(e deci!ion o t(e %a$or ar$iter !e% ) e3ecutory e&en pendin' appea%B 9o. #here must be a writ of e%ecution which may be issued by the Labor Arbiter motu proprio or on motion of an interested party. #Marana8 @otel vs. *LRC' Do court! or ad5ini!trati&e $odie! (a&e t(e po8er to !et or i3 rate! o pay, 8a'e!, (our! o 8or7 and ot(er ter5! and condition! o e5p%oy5entB As a rule, courts and administrative bodies cannot fi% the terms and conditions of employment because what is being promoted is collective bargaining. #Alcantara' Section 11. C(oice Cue!tion! on Pu$%ic Sector EE0! .. F, a !uper&i!or o Ca!ino @i%ipino 8a! di!5i!!ed $y PA9COR due to %o!! o con idence. :e i%ed a ca!e or da5a'e! 8it( t(e RTC. PA9COR i%ed a 5otion to di!5i!! on 'round o %ac7 o Huri!diction o t(e RTC to (ear t(eca!e. I! t(e 'round &a%idB =es. #he case involving whether N was illegally dismissed falls under the 5urisdiction of the 6erits Systems 3rotection 4oard and the Civil Service Commission. #he claim for damages was merely incidental to the illegal dismissal. #PA2C1R vs. CA' 0. I! t(e ca!e not co'ni*a$%e $y t(e %a$or ar$iterB 9o. 3AHC*" is a H*CC with an original charter. A&d.B 3. 6(at i! 9OCC 8it( ori'ina% c(arterB &t is a H*CC with a legislative charter i.e. 3AHC*" and )43. #Alcantara' :. May EE0! o t(e 'o&ern5ent 'o on !tri7e and 5ay t(e %atter dec%are a %oc7outB 9o. #he terms and conditions of government EEs are fi%ed by law and thus they are prohibited from using the normal instruments available to private sector EEs. ;owever, under Sec. .+ of E* .<,, the terms and conditions or improvements thereof not fi%ed by law may be the sub5ect of negotiations between duly recogni$ed EEs organi$ations and appropriate government authorities. A&d.B G. A!!u5in' t(at EE0! o 9OCC0! 8it( ori'ina% c(arter! cannot 'o on !tri7e, 5ay t(ey ne&ert(e%e!! ro5 union! and petition or certi ication e%ectionB =es. Although they are covered by civil service laws, they are guaranteed the right to self-organi$ation. 8nder E* .<,, where there are two or more duly registered EEs organi$ations in the appropriate bargaining unit, the 4L" shall, upon petition order the conduct of certification election and certify the winner as the e%clusive representative of the ran'-and-file EEs in the said organi$ational unit. #/-PAS vs. *@A' 6. So5e -?? pu$%ic !c(oo% teac(er! did not conduct t(eir c%a!!e! and in!tead con&er'ed at Li8a!an' +oni acio to prote!t t(e non)pay5ent o t(eir $ene it!. I! t(e 5a!! action %a8 u%B 9o. EEs in the public service do not have the right to stri'e. #MPS/A vs. Laguio' =. T(e N:C i! 1??G 'o&ern5ent)o8ned or'ani*ed in accordance 8it( EO #<<, t(e Uni or5 C(arter o 9o&ern5ent Corporation!. Are it! EE0! co&ered $y t(e pro&i!ion! o t(e La$or CodeB =es. #he 9;C is incorporated under and pursuant to a general legislation and not by an act of Congress or by special law. #/-PAS vs. *@C'

65

8. #he 3ublic Sector 6anagement Council has 5urisdiction to hear charges of unfair labor practice filed by a government EE against their E". &n deciding the unfair labor practice charge, the 3SL6C may also rule on the complainants dismissal if the two issues are unavoidably lin'ed. #PLM vs. CSC'