COLLECTIVE BARGAINING

AND ADMINISTRATION OF
AGREEMENT
Part 1. COLLECTIVE BARGAINING CONCEPT AND
PROCEDURE

SCOPE
ART. 260 [250]

PROCEDURE IN COLLECTIVE
BARGAINING

ART. 261 [251]

DUTY TO BARGAIN COLLECTIVELY IN THE

ABSENCE OF COLLECTIVE BARGAINING
AGREEMENTS

ART. 262 [252]

MEANING OF DUTY TO BARGAIN

COLLECTIVELY

ART. 263 [253]

DUTY TO BARGAIN COLLECTIVELY WHEN

THERE EXISTS A COLLECTIVE BARGAINING
AGREEMENT

ART. 264 [253-A]

ART. 265 [254]

TERMS OF A COLLECTIVE
BARGAINING AGREEMENT

INJUNCTION PROHIBITED

Overview/Key Qualities
1.

2.
3.

4.

5.

6.

How is collective bargaining done? May the parties

devise their own procedure?
The prevailing practice is single enterprise bargaining.
Is multi-employer bargaining allowed?
What are the elements of the duty to bargain,
violation of which may constitute ULP?
What are the compulsory and optional subjects of
bargaining?
What are the requirements of valid ratification of a
CBA?
When does a CBA take effect? Up to when is it
effective? May its life be extended by non-renewal or
by mutual agreement?

Concept of Collective Bargaining

It is a democratic
framework to
stabilize the
relation between
labor and
management to
create a climate
of sound and
stable industrial
peace. It is a
mutual
responsibility of
the employer
and the union
and is their legal
obligation.

Democratic framework
Stability
Industrial peace
Legal obligation
Continuous process
Employer-employee relations

FOUR PROCESSES
Negotiation between
representatives of the
management and the
union over wages, hours,
and other termsof
employment

The execution of a written

contract embodying the
terms agreed upon

Negotiation of any
question arising as to the
interpretation or
application of the contract

Negotiation over the terms

of a new contract or
proposed modifications,
when an existing
agreement is validly open
for negotiations

A SYSTEM OF CONTINUOUS
PROCESSES

LEGISLATIVE Negotiation of
Contracts
PHASE
EXECUTIVE
PHASE
JUDICIAL
PHASE

Administration of
Contracts
Interpretation or
Application of Contracts

Collective Bargaining Agreement

A contract
executed upon
request of either
the employee or
the exclusive
bargaining
representative of
the employees
incorporating the
agreement
reached after
negotiations with
respect to wages,
hours of work and
all other terms
and conditions of
employment,
including
proposals for
adjusting any
grievances or
questions under
such agreement.

Generalized code
Whole employment relationship
Rights and duties of parties
Industrial self-government
Grievance machinery
Private law

WORDS TO REMEMBER

wages, hours of
work, and all other
terms and conditions
of employment

ART. 260 (a)

1.

2.

3.

When a party desires to negotiate an

agreement,
it shall serve a
upon the
other party with a statement of its
proposals.
The other party shall make a reply
thereto
from receipt of such notice;

ART. 260 (b)

1.

3.

Should differences arise on the basis

of such notice and reply,
may request for a
conference
which shall begin
from the date of
request

ART. 260 (c)

1.

2.

3.

If the dispute is not settled, the board shall intervene

and immediately call the parties to

conciliation meetings.
The board
requiring the attendance of the parties
to such meetings.
It shall be the
of the parties to participate fully
and promptly in the conciliation meetings the board
may call.

ART. 260 (d)

1.

2.

During the conciliation

proceedings in the Board,
the parties are prohibited from
doing
the early
settlement of the disputes

ART. 260 (e)

1.

The Board shall exert all

efforts to settle disputes
amicable and encourage the
parties to submit their case to
a voluntary arbitrator.

JURISDICTIONAL PRECONDITIONS OF
COLLECTIVE BARGAINING
Possession of the status of
majority representation of the
employees representative in
accordance with any of the
means of selection or
designation provided for by
the Labor Code

Proof of majority
representation

A demand to bargain
under Article 260
[250] par. (a) of the
New Labor Code

PARTIES TO COLLECTIVE BARGAINING

EMPLOYER

Duty to bargain
exclusive between
employer and
employee
Where there is no duty
to bargain, there is no
right to violate

EMPLOYEE

Legitimate labor
organization or
Any officer or agent
of such organization
whether or not
employed
Duly authorized by
employees

MINORITY vs. MAJORITY UNION ULP

MANAGEMENT

Refusal of Collective
Bargaining: dealing
and negotiation with
the minority
representative to the
exclusion of the
majority
representative

UNION

ULP: where there is a

legitimate
representation concern,
to strike and demand
that management
engage in collective
bargaining.
See Lakas ng Mangagawang
Makabayan vs. Marcelo Enterprises

BARGAINING TIME FRAME

BEGINS

Jurisdictonal
Preconditions Present
:
within 12 mos. from
and
of
exclusive bargaining
representative

ENDS

No Time Limit

CERTIFICATION YEAR

Absent unusual circumstances, an employer commits

an unfair labor practice by refusing to bargain with
the union during its certification year,
notwithstanding the repudiation of the union by the
majority of its employees before expiration of the
one-year period.
The rule is the same whether the union lost its
majority as a result of the employers unfair labor
practices or through no fault of the employer.
Following expiration of the certification period,
there continues to be a presumption in favor of a
union majority.

SINGLE ENTERPRISE vs. MULTIEMPLOYER BARGAINING

SINGLE

D.O. No. 40-03: The

recognized or certified
labor union and its
employer may adopt
such procedures and
processes they may
deem appropriate and
necessary for the early
termination of their
negotiations

MULTI

Industry-wide
Bargaining
P.D. No. 442
E.O. No. 111
D.O. No. 40-03

ART. 261
1.

In the
providing for a more expeditious
manner of collective bargaining,

in accordance
with the provisions of this code.

ART. 262
1.

2.

The duty to bargain collectively means the

performance of a mutual obligation to meet and
convene promptly and expeditiously in
for the purpose of negotiating an agreement with
respect to
including
proposals for adjusting any grievances or
questions arising under such agreement
and executing a contract incorporating such
agreements if requested by either party but such
duty does not compel any party to agree to a
proposal or to make any concession.

ART. 263
1.

2.

3.

When there is a collective bargaining agreement, the

duty to bargain collectively shall also mean that
neither party shall terminate nor modify such
agreement during its lifetime.
However, either party can serve a
to
terminate or modify the agreement at
prior to its expiration date.
It shall be the duty of both parties to keep the status
quo and to continue in full force and effect the terms
and conditions of the existing agreement
and/or until a new agreement is
reached by the parties.

60 DAY PERIOD
ART. 263

Nonrepresentational
aspects provisions of
the CBA

ART. 264

THE FREEDOM PERIOD

Duty to Bargain
Art. 261

The mutual obligation

of the employer and
the employees
majority union to meet
and convene.

Art. 263

To meet and convene,

as well as the
obligation not to
terminate or modify
the CBA during its
lifetime.

FOUR FORMS OF ULP IN

BARGAINING
FAILURE OR
REFUSAL TO
MEET AND
CONVENE

EVADING THE
MANDATORY
SUBJECTS OF
BARGAINING

BAD FAITH IN
BARGAINING, INCLUDING
FAILURE OR REFUSAL TO
EXECUTE THE CLLECTIVE
AGREEMENT, IF
REQUESTED

GROSS
VIOLATION
OF THE CBA

FIRST ULP IN BARGAINING

FAILURE OR REFUSAL TO MEET AND CONVENE

FAILURE OR REFUSAL TO MEET AND

CONVENE
An employer is
guilty of an unfair
labor practice in
refusing to bargain
with the
representative of a
majority of his
employees. To
bargain in good
faith, an employer
must not only meet
and confer with the
union which
represents his
employees, but also
must recognize the
union for the
purpose of
collective
bargaining.

Legal obligation for both parties

Good faith bargaining involves
recognizing the union
Refusal by an employer to bargain
collectively with his employees
constitutes interference with the
latters right to self-organization.

SUMMARIZED SCENARIOS
ULP

Unresolved petition for

Union Cancellation

NOT ULP

Bad faith sale of company

Economic Exigencies do not
justify Refusal to Bargain
Interference in the Selection
of the Unions Negotiating
Panel
Non-reply to Collective
Bargaining Proposal

Refusal to bargain
with an Unregistered
Chapter
Conversion to
Independent Franchise
or Operation

SUCCESSOR COMPANY
continuity and identity
1.

2.

The basic rule is that if the transfer of assets and the

employees from one employer to another
, the
transferors duty to recognize and bargain with an
incumbent union devolves upon the transferee as
successor employer.
If the transfer of assets and employees from one
employer to another
, the old employers duty to
with an incumbent union
devolves on the new employer as successor employer.

Acts not Deemed Refusal to Bargain

1.

2.

3.

Adoption of an adamant bargaining position in

good faith, particularly where the company is
operating at a loss;
Refusal to bargain over demands for commission
of unfair labor practices;
Refusal to bargain during period of illegal strike.

Neither is there duty to bargain where:

1.
2.
3.

4.

5.

6.

There is no request for bargaining;

The union seeks recognition for an inappropriately
large unit;
The union seeks to represent some persons who are
excluded from the Act;
The rank-and-file unit includes supervisors or
inappropriate otherwise;
The demand for recognition and bargaining is made
within the year following a certification election in
which the clear choice was no union and no ad interim
significant change has taken place in the unit;
The union makes unlawful bargaining demands.

SECOND ULP IN BARGAINING

EVADING THE MANDATORY SUBJECTS

MANDATORY SUBJECTS

wages, hours of
work, and all other
terms and conditions
of employment

EVADING MANDATORY SUBJECTS

A mere remote,
direct, or incidental
impact is insufficient
to render a subject
a mandatory
subject of
bargaining; in
order for a matter
ro be subject t
mandatory
collective
bargaining, it must
materially or
significantly affect
not only what an
employer has
already granted,
but also what it has
announced it
intends to grant.

Employers duty to bargain is limited to the

mandatory bargaining subjects, but he may
bargain to an impasse
Wages and Employment Conditions
Workloads and Work Rules
Code of Conduct
Management Prerogatives Clause
Union Discipline Clause
Arbitration, Strike-Vote, No-Strike Clauses
No-Lockout Clause
Statutory Benefits

EXAMPLES OF MANDATORY SUBJECTS

1.

2.
3.

4.
5.
6.
7.
8.
9.
10.
11.
12.

Wages and other types of compensation, including merit

increases
Working hours and working days, including work shifts
Vacations and holidays
Bonuses
Pensions and retirement plans
Seniority
Transfer
Lay-offs
Employee workloads
Work rules and regulations
Rent of company houses
Union security arrangements

IMPASSE OR DEADLOCK
A bargaining
impasse over
an issue exists
where good
faith
bargaining on
the part of
the parties
has failed to
resolve the
issue and
there are no
definite plans
for further
efforts to brak
the deadlock.

Mandatory vs. Non-mandatory subjects

Duty to bargain remains
Valid reason to declare a strike or lockout

BARGAINING TO DEADLOCK
MANDATORY

NOT BAD FAITH: NO

ULP

NON-MANDATORY

BAD FAITH: ULP

THIRD ULP IN BARGAINING

BAD FAITH

INSTANCES OF BAD FAITH

1.

2.

3.
4.

Delay of, or imposing time limit on, negotiations

Surface bargaining; Shifting Bargaining Positions;
Blue Sky Bargaining
Inflexible Demands; Strike Amid Negotiation
Boulwarism; Take-it-or-leave-it Bargaining

INSTANCES EXPLAINED
SURFACE
BARGAINING
A sophisticated
pretense in the
form of apparent
bargaining, it
involves going
through the
motions of
negotiating
without any legal
intent to reach an
agreement.

SHIFTING
BARGAINING
POSITIONS
Repeated shifts in
position and
attitude on the
part of an
employer
whenever a
tentative
agreement is
reached

BLUE SKY
BARGAINING
Exaggerated or
unreasonable
proposals

BOULWARISM
INTENSE MARKETING

A campaign that
pictures the Company as
the true defender of the
employees interests,
further denigrating the
union, and sharply
curbing the Companys
ability to change its own
position.

TAKE IT OR LEAVE IT

An approach to
negotiations which
emphasized both the
powerlessness and
uselessness of the
Union to its members

FOURTH ULP IN BARGAINING

GROSS VIOLATION OF THE CONTRACT

GROSS VIOLATION OF THE

CONTRACT
Occurs when
the collective
contrast is
already in
place., but the
collective
bargaining
process is not
yet over, and
the duty to
bargain is still
operative
because such
duty further
requires
faithful
adherence to
the contractual
provisions.

Violation of the contract amounts to ULP

if the violation is gross.
Faithful adherence to the contract is a
continuation of the duty to bargain
Obligation to renegotiate the CBA
when it expires

RATIFICATION, EXECUTION,
REGISTRATION
not provided in Arts. 260-265

RATIFICATION
1.

2.

Ratified or approved by the majority of all the

workers in the bargaining unit, not just the majority
union
Posting of CBA in two conspicuous places for five
days

Not needed if CBA is the product of an arbitral

award by appropriate government authority or by
a voluntary arbtirator

EXECUTION

Signing of the CBA

If formalized, refusal is ULP
Signing of a contract

REGISTRATION

Registered with the DOLE Regional Office where

the bargaining union is registered or where it
principally operates.
Within thirty (30) calendar days from execution of
the agreement
Failure to register will not invalidate or render CBA
unenforceable

AUTOMATICE RENEWAL
It shall be the duty of both parties to
keep the status quo and to continue
in full force and effect the terms and
conditions of the existing agreement
and/or
until a new agreement is reached by
the parties.

ART. 264 & 265

TERMS OF A COLLECTIVE BARGAINING
AGREEMENT
INJUNCTION PROHIBITED

SCOPE
EFFECTIVITY DATE

Whether the CBA is

the first CBA or a
renegotiated CBA

DURATION

Whether the subject

provision is
representational or
non-representational

Effectivity Date
First CBA

Whatever date
parties agree on

Renegotiated CBA

If concluded within
from expiry of
old CBA: takes effect on
date following expiry
If beyond: no automatic
retroaction. Parties must
agree on terms of
effectivity

DURATION
Non Representational
Aspect
[3 YRS]

Representational
Aspect
[5 YRS]

FREEDOM PERIOD
No petition questioning the majority status
of the incumbent bargaining agent shall
be entertained and no certification
election shall be conducted by the
Department of Labor and Employment
outside of the
immediately before the date of expiry of
such five-year terms of the Collective
Bargaining Agreement.

ART. 265
in any
case involving or growing out of labor
disputes shall be
, except as otherwise
provided in Articles 218 and 264 of
this code.

EXCEPTION

WHEN PROHIBITED OR UNLAWFUL ACTS ARE

BEING OR ABOUT TO BE COMMITTED

Overview/Key Qualities
1.

2.
3.

4.

5.

6.

How is collective bargaining done? May the parties

devise their own procedure?
The prevailing practice is single enterprise bargaining.
Is multi-employer bargaining allowed?
What are the elements of the duty to bargain,
violation of which may constitute ULP?
What are the compulsory and optional subjects of
bargaining?
What are the requirements of valid ratification of a
CBA?
When does a CBA take effect? Up to when is it
effective? May its life be extended by non-renewal or
by mutual agreement?