LAW 114

LABOR
RELATIONS
MIDTERMS
BRIES, CABALLA, PROVISIONS + CASE SUMMARIES +
NOTES FROM THE LECTURES,
LOPEZ, C., PUA, THE AZUCENA COMMENTARY,
& VILLARAMA AND THE C2015 REVIEWER

I. INTRODUCTION . but the Secretary of Labor issued order for the UIC to readmit
A. Definitions/ Classification
1. Labor Law - statutes, regulations, and jurisprudence
governing the relations between capital and labor by providing
for certain employment standards and a legal framework for
negotiating, adjusting, and administering those standards
2. Labor Standards - the least terms and conditions of
employment that employers must comply with and to which
employees are entitled as a matter of legal right
3. Labor Relations - status, rights, and duties, and the
international mechanisms that govern the collective and
individual and collective interactions, of employers, employees,
or their representatives
4. Welfare/ Social Legislation - those laws that provide
particular kinds of protection or benefits to society or
segments thereof in furtherance of social justice
B. Justification/ Basis/ Ultimate Goal: Labor Legislation
Justification: Social Justice
Calalang v. Williams - neither communism, nor despotism, nor
atomism nor anarchy, but the humanization of laws and the
equalization of social and economic forces by the State so that
justice in its rational and objectively secular conception may at
least be approximated.
Basis: Police Power
C. 7 Cardinal Rights of Workers (ON STH WaP)
1. Self-Organization
2. Collective bargaining and Negotiation
3. Peaceful concerted activities incl. the right to Strike
4. Security of Tenure
5. Humane conditions of work
6. Living Wage
7. Participate in policy and decision-making processes
affecting their rights and benefits
D. Management Prerogative
1987 Const. Art. XIII, Sec. 3, pars. 3 and 4
The State shall promote the principle of shared responsibility
between workers and employers and the preferential use of
voluntary modes in settling disputes, including conciliation,
and shall enforce their mutual compliance therewith to foster
industrial peace.
The State shall regulate the relations between workers and
employers, recognizing the right of labor to its just share in the
fruits of production and the right of enterprises to reasonable
returns to investments, and to expansion and growth.
UNIVERSITY OF IMMACULATE CONCEPTION INC.
v. SEC. OF LABOR (2005)
D: Exercise of management prerogatives is recognized, subject
to exceptions.
F: UIC and Union submitted for voluntary arbitration the issue
of whether or not to include certain employees in the collective
bargaining unit. Pending resolution, the Union went on strike,
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the employees in the same terms and conditions prevailing in
the employment before the strike. When arbitrators ruled that
12 employees were to be excluded, they gave the employees a
choice: either to remain as confidential employees, or as
members of the Union. The employees asserted that they can
remain as both. UIC terminated their employments.
H: UIC is not allowed to terminate these employments.
Exercise of management prerogatives is recognized, but
subject to exceptions, as when the Secretary of Labor
assumes jurisdiction over labor disputes involving industries
indispensable to the national interest (Art 263 (g), Labor Code).
E. Balancing of Interests - Art. XIII, Sec. 3, par. 4, supra
The State recognizes 2 competing rights that must be
balanced (Art.XIII, Sec.3):
1. Right to labor to its just share in the fruits of
production
2. Right to enterprises to reasonable returns on
investments, expansion, and growth
II. STATE POLICY: LABOR RELATIONS .
A. Voluntary/Democratic Method of Dispute Settlement
The State shall promote:
• Principle of shared responsibility between ERs and EEs
• Use of voluntary modes in settling disputes
• Primacy of free collective bargaining and negotiation
It shall enforce mutual compliance on the part of the worker
and employer to foster industrial peace.
1987 Const. Art XIII, Sec.3, par. 3, supra
LC, Art. 217. A. It is the policy of the State: (a) To promote and
emphasize the primacy of free collective bargaining and
negotiations, including voluntary arbitration, mediation and
conciliation, as modes of settling labor or industrial disputes;
LC, Art. 217. Declaration of Policy. B. To encourage a truly
democratic method of regulating the relations between the
employers and employees by means of agreements freely
entered into through collective bargaining, no court or
administrative agency or official shall have the power to set or
fix wages, rates of pay, hours of work or other terms and
conditions of employment, except as otherwise provided under
this Code
LC, Art. 3. Declaration of basic policy - The State shall afford
protection to labor, promote full employment, ensure equal
work opportunities regardless of sex, race or creed and
regulate the relations between workers and employers. The
State shall assure the rights of workers to self- organization,
collective bargaining, security of tenure, and just and humane
conditions of work.
ESTATE OF NELSON DULAY v. ABOITIZ JEBSEN MARITIME
(2012)
D: It is only in the absence of a CBA that parties may opt to
submit the dispute to either the NLRC or to voluntary
arbitration. The policy of the state is to promote voluntary
arbitration as a mode of settling labor disputes.

F: A seaman died after the completion of his contract. His
widow claimed for death benefits through the grievance
procedure stated in the CBA. Company claimed that RA 8042
vested jurisdiction in the NLRC/LA, not the VA.
H: Although RA 8042 is a special law governing OFWs, it has
no specific provision on disputes involving interpretation of a
CBA. On the other hand, Arts. 217(c) and 261 of the LC are very
specific in stating that VAs have jurisdiction. While the special
statute refers to a subject in general, the general statute treats
in particular. In any case, based on the provisions of the CBA, it
is clear that the parties really intended to bring to conciliation/
voluntary arbitration disputes in the interpretation of the CBA.
B. Trade Unionism
Def. Trade union activities - Labor Code, Art. 276. a. Par. 2
"Trade union activities" shall mean: (ON C REA)
1. Organization, formation and administration of labor
organization;
2. Negotiation and administration of collective
bargaining agreements;
3. all forms of Concerted union action;
4. organizing, managing, or assisting union conventions,
meetings, Rallies, referenda, teach-ins, seminars,
conferences and institutes;
5. any form of participation or involvement in
representation proceedings, representation elections,
consent elections, union Elections; and
6. other activities or actions Analogous to the foregoing.
The State shall:
• Promote free trade unionism as an instrument for
enhancement of democracy and the promotion of social
justice and development
• Foster the free and voluntary organization of a strong
and united labor movement
• Promote free trade unionism through expeditious
procedures governing the choice of an exclusive
bargaining agent
Determining the exclusive bargaining agent shall be:
• A non-litigious process
• Free from technicalities of law and procedure
• By support of majority of all employees
1987 Const., Art. III. Sec. 8. The right of the people, including
those employed in the public and private sectors, to form
unions, associations, or societies for purposes not contrary to
law shall not be abridged.
LC, Art. 217. A. It is the policy of the State:
(b) To promote free trade unionism as an instrument for the
enhancement of democracy and the promotion of social
justice and development;
(c) To foster the free and voluntary organization of a strong
and united labor movement;
LC, Art. 218. (g) "Labor organization" means any union or
association of employees which exists in whole or in part for
the purpose of collective bargaining or of dealing with
employers concerning terms and conditions of employment.
Book V, Rule VI, Sec. 1. Policy — It is the policy of the State to
promote free trade unionism through expeditious procedures
governing the choice of an exclusive bargaining agent. The
determination of such exclusive bargaining agent is a non-
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litigious proceeding and, as far as practicable, shall be free
from technicalities of law and procedure, provided only that in
every case, the exclusive bargaining agent enjoys the majority
support of all the employees in the bargaining unit.
C. Worker Enlightenment
The State shall promote the enlightenment of workers
concerning their rights and obligations as union members and
employees.
Duty of labor organizations and officers to inform members of:
• Union's constitution and by-laws (CBL)
• CBA
• Prevailing labor relations system
• Rights and obligations under existing laws
Unions are authorized to collect contributions for labor
education and research, benefits, welfare fund, etc.
LC, Art. 217. A. It is the policy of the State: (d) To promote the
enlightenment of workers concerning their rights and
obligations as union members and as employees;
LC, Art. 247. (p) It shall be the duty of any labor organization
and its officers to inform its members on the provisions of its
constitution and by-laws, collective bargaining agreement, the
prevailing labor relations system and all their rights and
obligations under existing labor laws.
LC, Art. 283. (a) All unions are authorized to collect reasonable
membership fees, union dues, assessments and fines and
other contributions for labor education and research, mutual
death and hospitalization benefits, welfare fund, strike fund
and credit and cooperative undertakings.
D. Adequate Machinery for Expeditious Dispute Settlement
The State shall provide an adequate administrative machinery
for the expeditious settlement of labor or industrial disputes.
1. NLRC - National Labor Relations Commission; LAs
2. BLR - Bureau of Labor Relations
3. NCMB - National Conciliation and Mediation Board
4. TVAAC - Tripartite Voluntary Arbitration Advisory
Council
5. AIDA - Administrative Intervention for Dispute
Avoidance
1987 Const., Art. III. Sec. 16: All persons shall have the right to
a speedy disposition of their cases before all judicial, quasi-
judicial, or administrative bodies.
Labor Code, Art. 217. A. It is the policy of the State:
(e) To provide an adequate administrative machinery for the
expeditious settlement of labor or industrial disputes;
Labor Code, Art. 218. (a) (b) (c) (d) Definitions.
(a) "Commission" means the National Labor Relations
Commission or any of its divisions, as the case may be, as
provided under this Code.
(b) "Bureau" means the Bureau of Labor Relations and/or the
Labor Relations Divisions in the regional offices
established under Presidential Decree No. 1, in the
Department of Labor.
(c) "Board" means the National Conciliation and Mediation

Board established under Executive Order No. 126.
(d) "Council" means the Tripartite Voluntary Arbitration
Advisory Council established under Executive Order No.
126, as amended.
1. National Labor Relations Commission; Labor Arbiters
LAs and NLRC have original and exclusive jurisdiction over:
1. ULP cases
2. Termination disputes
3. With claim for reinstatement, claims involving terms
and conditions of employment
4. Claims for damages arising from ER-EE relations
5. Cases arising from violation of Art. 264 (now 270)
6. All other claims arising from ER-EE relations
exceeding P5,000, regardless of claim for
reinstatement, EXCEPT claims for:
a. Employees Compensation
b. Social Security
c. Medicare (should now be PhilHealth)
d. Maternity Benefits
PLUS:
7. Money claims arising from ER-EE relationship or by
virtue of any law/contract, involving Filipino workers
for overseas deployment
8. Wage distortion disputes in unorganized
establishments not voluntarily settled
9. Enforcement of compromise agreements when there
is non-compliance by any of the parties
10. Other cases as may be provided by law
A case under Art. 223 may also be lodged with a voluntary
arbitrator because the law gives primacy to voluntary
arbitration instead of compulsory arbitration.
LC, Art. 218. (a) "Commission" means the National Labor
Relations Commission or any of its divisions, as the case may
be, as provided under this Code.
LC, Art. 219. National Labor Relations Commission. There
shall be a National Labor Relations Commission which shall be
attached to the Department of Labor and Employment for
program and policy coordination only, composed of a
Chairman and fourteen (14) Members.
Five (5) members each shall be chosen from among the
nominees of the workers and employers organizations,
respectively. The Chairman and the four (4) remaining
members shall come from the public sector, with the latter to
be chosen from among the recommendees of the Secretary of
Labor and Employment.
Upon assumption into office, the members nominated by the
workers and employers organizations shall divest themselves
of any affiliation with or interest in the federation or
association to which they belong.
The Commission may sit en banc or in five (5) divisions, each
composed of three (3) members. Subject to the penultimate
sentence of this paragraph, the Commission shall sit en banc
only for purposes of promulgating rules and regulations
governing the hearing and disposition of cases before any of
its divisions and regional branches, and formulating policies
affecting its administration and operations. The Commission
shall exercise its adjudicatory and all other powers, functions,
and duties through its divisions. Of the five (5) divisions, the
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first, second and third divisions shall handle cases coming
from the National Capital Region and the parts of Luzon; and
the fourth and fifth divisions, cases from the Visayas and
Mindanao, respectively; Provided that the Commission sitting
en banc may, on temporary or emergency basis, allow cases
within the jurisdiction of any division to be heard and decided
by any other division whose docket allows the additional
workload and such transfer will not expose litigants to
unnecessary additional expense. The divisions of the
Commission shall have exclusive appellate jurisdiction over
cases within their respective territorial jurisdictions..
The concurrence of two (2) Commissioners of a division shall
be necessary for the pronouncement of judgment or
resolution. Whenever the required membership in a division is
not complete and the concurrence of two (2) commissioners
to arrive at a judgment or resolution cannot be obtained, the
Chairman shall designate such number of additional
Commissioners from the other divisions as may be necessary.
The conclusions of a division on any case submitted to it for
decision shall be reached in consultation before the case is
assigned to a member for the writing of the opinion. It shall be
mandatory for the division to meet for purposes of the
consultation ordained herein. A certification to this effect
signed by the Presiding Commissioner of the division shall be
issued and a copy thereof attached to the record of the case
and served upon the parties.
The Chairman shall be the Presiding Commissioner of the first
division and the four (4) other members from the public sector
shall be the Presiding Commissioners of the second, third,
fourth and fifth divisions, respectively. In case of the effective
absence or incapacity of the Chairman, the Presiding
Commissioner of the second division shall be the Acting
Chairman.
The Chairman, aided by the Executive Clerk of the Commission,
shall have administrative supervision over the Commission
and its regional branches and all its personnel, including the
Executive Labor Arbiters and Labor Arbiters.
The Commission, when sitting en banc shall be assisted by the
same Executive Clerk and, when acting thru its Divisions, by
said Executive Clerks for the second, third, fourth and fifth
Divisions, respectively, in the performance of such similar or
equivalent functions and duties as are discharged by the Clerk
of Court and Deputy Clerks of Court of the Court of Appeals.
LC, Art. 223. Jurisdiction of the Labor Arbiters and the
Commission. a. Except as otherwise provided under this Code,
the Labor Arbiters shall have original and exclusive jurisdiction
to hear and decide, within thirty (30) calendar days after the
submission of the case by the parties for decision without
extension, even in the absence of stenographic notes, the
following cases involving all workers, whether agricultural or
non-agricultural:
1) Unfair labor practice cases;
2) Termination disputes;
3) If accompanied with a claim for reinstatement, those
cases that workers may file involving wages, rates of pay,
hours of work and other terms and conditions of
employment;
4) Claims for actual, moral, exemplary and other forms of
damages arising from the employer-employee relations;
5) Cases arising from any violation of Article 264 of this

Code, including questions involving the legality of strikes
and lockouts; and
6) Except claims for Employees Compensation, Social
Security, Medicare and maternity benefits, all other claims
arising from employer-employee relations, including those
of persons in domestic or household service, involving an
amount exceeding five thousand pesos (P5,000.00)
regardless of whether accompanied with a claim for
reinstatement.
b. The Commission shall have exclusive appellate jurisdiction
over all cases decided by Labor Arbiters.
c. Cases arising from the interpretation or implementation of
collective bargaining agreements and those arising from the
interpretation or enforcement of company personnel policies
shall be disposed of by the Labor Arbiter by referring the same
to the grievance machinery and voluntary arbitration as may
be provided in said agreements.
2. National Conciliation and Mediation Board (NCMB)
LC, Art. 212. (c) "Board" means the National Conciliation and
Mediation Board established under Executive Order No. 126.
LC, Art. 256. Procedure in collective bargaining - The following
procedures shall be observed in collective bargaining:
(c) If the dispute is not settled, the Board shall intervene upon
request of either or both parties or at its own initiative and
immediately call the parties to conciliation meetings. The
Board shall have the power to issue subpoenas requiring
the attendance of the parties to such meetings. It shall be
the duty of the parties to participate fully and promptly in
the conciliation meetings the Board may call;
(d) During the conciliation proceedings in the Board, the
parties are prohibited from doing any act which may
disrupt or impede the early settlement of the disputes; and
(e) The Board shall exert all efforts to settle disputes
amicably and encourage the parties to submit their case
to a voluntary arbitrator.
3. BLR; Labor Relations Division
The BLR has original and exclusive authority to act on:
1. all inter-union and intra-union conflicts
2. all disputes, grievances or problems arising from or
affecting labor-management relations in all
workplaces
EXCEPT those arising from CBA interpretation/implementation
LC, Art. 218. (b) "Bureau" means the Bureau of Labor Relations
and/or the Labor Relations Divisions in the regional offices
established under Presidential Decree No. 1, in the Department
of Labor.
LC, Art. 232. The Bureau of Labor Relations. The Bureau of
Labor Relations and the Labor Relations Divisions in the
regional offices of the Department of Labor, shall have original
and exclusive authority to act, at their own initiative or upon
request 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
workplaces, whether agricultural or non- agricultural, except
those arising from the implementation or interpretation of
collective bargaining agreements which shall be the subject of
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grievance procedure and/or voluntary arbitration.
The Bureau shall have fifteen (15) working days to act on labor
cases before it, subject to extension by agreement of the
parties.
4. Tripartite Voluntary Arbitration Advisory Council (TVAAC)
Voluntary Arbitrators (VAs) have original and exclusive
jurisdiction over:
1. All unresolved grievances arising from the
interpretation or implementation of the CBA
2. Grievances arising from the interpretation or
enforcement of company personnel policies not
settled within 7 days from submission to the CBA's
grievance machinery
CBA violations that are NOT gross in character shall no longer
be treated as ULP but as grievances.
Gross violations: flagrant and/or malicious refusal to
comply with the economic provisions
Upon agreement of the parties, VAs may also hear and decide
all other labor disputes including unfair labor practices and
bargaining deadlocks.
LC, Art. 218. (a), supra p. 3
LC, Art. 266. Grievance machinery and voluntary arbitration.
The parties to a Collective Bargaining Agreement shall include
therein provisions that will ensure the mutual observance of its
terms and conditions. They shall establish a machinery for the
adjustment and resolution of grievances arising from the
interpretation or implementation of their Collective Bargaining
Agreement and those arising from the interpretation or
enforcement of company personnel policies.
All grievances submitted to the grievance machinery which are
not settled within seven (7) calendar days from the date of its
submission shall automatically be referred to voluntary
arbitration prescribed in the Collective Bargaining Agreement.
For this purpose, parties to a Collective Bargaining Agreement
shall name and designate in advance a Voluntary Arbitrator or
panel of Voluntary Arbitrators, or include in the agreement a
procedure for the selection of such Voluntary Arbitrator or
panel of Voluntary Arbitrators, preferably from the listing of
qualified Voluntary Arbitrators duly accredited by the Board. In
case the parties fail to select a Voluntary Arbitrator or panel of
Voluntary Arbitrators, the Board shall designate the Voluntary
Arbitrator or panel of Voluntary Arbitrators, as may be
necessary, pursuant to the selection procedure agreed upon in
the Collective Bargaining Agreement, which shall act with the
same force and effect as if the Arbitrator or panel of
Arbitrators has been selected by the parties as described
above.
LC, Art. 267. Jurisdiction of Voluntary Arbitrators or panel of
Voluntary Arbitrators. The Voluntary Arbitrator or panel of
Voluntary Arbitrators shall have original and exclusive
jurisdiction to hear and decide all unresolved grievances
arising from the interpretation or implementation of the
Collective Bargaining Agreement and those arising from the
interpretation or enforcement of company personnel policies
referred to in the immediately preceding article. Accordingly,
violations of a Collective Bargaining Agreement, except those
which are gross in character, shall no longer be treated as
unfair labor practice and shall be resolved as grievances under
the Collective Bargaining Agreement. For purposes of this

article, gross violations of Collective Bargaining Agreement
shall mean flagrant and/or malicious refusal to comply with
the economic provisions of such agreement.
The Commission, its Regional Offices and the Regional
Directors of the Department of Labor and Employment shall
not entertain disputes, grievances or matters under the
exclusive and original jurisdiction of the Voluntary Arbitrator or
panel of Voluntary Arbitrators and shall immediately dispose
and refer the same to the Grievance Machinery or Voluntary
Arbitration provided in the Collective Bargaining Agreement.
LC, Art. 268. Jurisdiction over other labor disputes - The
Voluntary Arbitrator or panel of Voluntary Arbitrators, upon
agreement of the parties, shall also hear and decide all other
labor disputes including unfair labor practices and bargaining
deadlocks.
5. Administrative Intervention for Dispute Avoidance (AIDA)
Summary: The ER/ SEBA/ EEs' representative may bring a
request for intervention any potential/ongoing dispute which:
a. is a live and active dispute
b. may lead to strike/lockout/ massive labor unrest
c. is not the subject of any complaint/ notice of
strike or lockout at the time of the request
The secretary/ regional director shall intervene after the
parties manifest that they voluntarily submit the dispute, shall
refrain from any strike/ lockout/ stoppage/ complaint, and
shall abide by the agreement reached. If the intervention fails,
the parties may avail of the other remedies in the Labor Code.
AIDA - DOLE Circular No. 1, s. 2006
In line with the objectives of the Republic Act No. 9285,
Executive Order No. 523 dated 07 April 2006, and the mandate
of the Department of Labor and Employment to promote
industrial peace, this administrative procedure for the
voluntary settlement of labor disputes is hereby established.
1. Either or both the employer and the certified collective
bargaining agent (or the representative of the employees
where there is no certified bargaining agent) may voluntarily
bring to the Office of the Secretary of Labor and Employment,
through a REQUEST FOR INTERVENTION, any potential or
ongoing dispute defined below.
A potential or ongoing dispute refers to:
(a) a live and active dispute;
(b) that may lead to a strike or lockout or to massive labor
unrest; and
(c) is not the subject of any complaint or notice of strike or
lockout at the time a REQUEST FOR INTERVENTION is
made.
This recourse is separate from the established dispute
resolution modes of mediation, conciliation and arbitration
under the Labor Code, and is an alternative to other voluntary
modes of dispute resolution such as the voluntary submission
of a dispute to the Regional Director for mediation, to the
National Conciliation and Mediation Board (NCMB) for
preventive mediation, or to the intervention of a regional or
local tripartite peace council for the same purpose.
2. All REQUESTS shall be in writing and filed with the Office of
the Secretary. A REQUEST shall state:
(a) the name and address of the employer;
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(b) the name of the certified bargaining agent, or the
employee representative duly designated in writing by a
majority of the employees where there is no collective
bargaining agent;
(c) the number of employees affected by the potential or
ongoing dispute; and
(d) a brief description of the potential or ongoing dispute.
3. Upon receipt of the REQUEST, the Office of the Secretary
shall forthwith notify the parties and invite them for
conference.
The conference for REQUESTS coming from the National
Capital Region, Regions III, IV-A or IV-B shall be held at the
Office of the Secretary of Labor and Employment unless the
Secretary otherwise directs. The conference for REQUESTS
coming from the other regions shall be conducted by the
Regional Director for the Secretary.
4. The Office of the Secretary or the Regional director, in the
proper case, shall proceed to intervene after the parties shall
have manifested that;
(a) they voluntarily submit their potential or ongoing dispute
to intervention by the Office of the Secretary of Labor and
Employment;
(b) there is no pending notice of strike or lockout or any
related complaint in relation with their potential or
ongoing dispute;
(c) they shall refrain from any strike or lockout or any form of
work stoppage or from filing any related complaint while
the Secretary's intervention is in effect; and
(d) they shall abide by the agreement reached, whose terms
may be enforced through the appropriate writs issued by
the Secretary of Labor and Employment.
All agreements settling the dispute shall be in writing and
signed by the parties as well as the official who mediated the
dispute.
5. The parties and officials or employees of the Department of
Labor and Employment who took part in the intervention
proceedings shall not testify in any court or body regarding the
disclosures, submissions or positions made by the parties in
these proceedings.
6. If the intervention fails, either or both parties may avail
themselves of the remedies provided under the Labor Code.
Alternatively, the parties may submit their dispute to the Office
of the Secretary for voluntary arbitration.
Such voluntary arbitration shall be limited to the issues
defined in the parties' submission to voluntary arbitration
agreement and shall be decided on the basis of the parties'
position papers and submitted evidence.
The Office of the Secretary shall resolve the dispute within
sixty (60) days from the parties' submission of the dispute for
resolution.
E. Industrial Peace
The State shall:
• Ensure a stable but dynamic and just industrial peace
• Promote the principle of shared responsibility between
workers and employees
• Promote the use of voluntary modes of settling disputes

DOLE shall help promote and gradually develop labor-
management cooperation programs based on shared
responsibility and mutual respect.
LC, Art. 217.A. It is the policy of the State: (f) To ensure a
stable but dynamic and just industrial peace
LC, Art. 283. (g) The Ministry shall help promote and gradually
develop, with the agreement of labor organizations and
employers, labor-management cooperation programs at
appropriate levels of the enterprise based on the shared
responsibility and mutual respect in order to ensure industrial
peace and improvement in productivity, working conditions
and the quality of working life.
1987 Const., Art. XIII. Sec. 3 par. 3: The State shall promote
the principle of shared responsibility between workers and
employers and the preferential use of voluntary modes in
settling disputes, including conciliation, and shall enforce their
mutual compliance therewith to foster industrial peace.
F. Worker Participation in Decision and Policy Making
Processes Affecting Rights, Duties and Welfare
The State shall ensure participation of workers in decision and
policy-making processes affecting their rights, duties and
welfare.
Workers shall have the right to participate in policy and
decision-making processes of the establishment where they
are employed insofar as they will directly affect their rights,
benefits, and welfare.
Workers and employers may form labor-management
councils. Representatives shall be elected by majority of all
employees.
LC, Art.217. A. It is the policy of the State: (g) To ensure the
participation of workers in decision and policy-making
processes affecting their rights, duties and welfare.
LC, Art. 261. Par. 2. Exclusive bargaining representation and
workers’ participation in policy and decision-making - Any
provision of law to the contrary notwithstanding, workers shall
have the right, subject to such rules and regulations as the
Secretary of Labor and Employment may promulgate, to
participate in policy and decision-making processes of the
establishment where they are employed insofar as said
processes will directly affect their rights, benefits and welfare.
For this purpose, workers and employers may form labor-
management councils: Provided, That the representatives of
the workers in such labor-management councils shall be
elected by at least the majority of all employees in said
establishment.
LC, Art. 283. (g) The Ministry shall help promote and gradually
develop, with the agreement of labor organizations and
employers, labor- management cooperation programs at
appropriate levels of the enterprise based on the shared
responsibility and mutual respect in order to ensure industrial
peace and improvement in productivity, working conditions
and the quality of working life.
1987 Const., Art. XIII. Sec. 3 par. 2, 3rd sentence: They shall
also participate in policy and decision-making processes
affecting their rights and benefits as may be provided by law.
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III. RIGHT TO SELF-ORGANIZATION .
A. Basis of Right to Self-Organization
1. ILO Conventions
ILO Convention No. 87 (Freedom of Association & Protection
of Right to Organize)
Summary: Outlines the rights of both worker and employers to
“join organisations of their own choosing without previous
authorisation.”
• Rights are also extended to the organizations to draw
up rules and constitutions, vote for officers, and
organize administrative functions without interference
from public authorities.
• Organizations are required, in the exercise of these
rights, to respect the law of the land. In turn, the law of
the land, “shall not be such as to impair, nor shall it be
so applied as to impair, the guarantees provided for in
this Convention.”
• These provisions are applied to both armed forces and
police forces only as determined by national laws and
regulations, and do not supersede previous national
laws that reflect the same rights for such forces.
• All ILO members must give effect to the following
provisions.
ILO Convention No. 98 (Application of the Principles of the
Right to Organize and Bargain Collectively
Summary: Workers must be protected against discrimination
for joining a union, particularly conditions of employers to not
join a union, dismissal or any other prejudice for having union
membership or engaging in union activities.
• Both workers and employers' organizations should not
be interfered in their own establishment, functioning or
administration. Employers are prohibited from
dominating unions through "financial or other means".
• Each ILO member must give effect to these provisions
through appropriate machinery, such as a government
watchdog. It requires that the law promotes "the full
development and utilisation of machinery for voluntary
negotiation" between worker organisations and
employer groups to regulation employment "by means
of collective agreements.
• "National law can provide different laws for the police
and armed forces, and the Convention does not affect
laws that existed when an ILO member ratifies the
Convention. Article 6 gives an exemption for "the
position of public servants engaged in the
administration of the State".
2. US Laws
National Labor Relations Act (Wagner Act)
Purposes (according to the National Labor Relations Board):
• Protect the rights of employees and employers
• Encourage collective bargaining
• Curtail certain private sector labor and management
practices, which can harm the general welfare of workers,
businesses and the U.S. economy.
Key principles:
• Encouraging practice & procedure of collective bargaining
• Protecting the exercise by workers of full freedom of
association, self-organization, and designation of
representatives of their own choosing, for the purpose of

negotiating the terms and conditions of their employment
or other mutual aid or protection
- Created the National Labor Relations Board, with similar
powers and functions to the NLRC
- Listed unfair labor practices committed by employers
US Labor Management Relations Act of 1947 (Taft-Heartley
Act)
- Restricted the activities and power of labor unions
- Amended the Wagner Act by adding unfair labor practices
committed by labor organizations
3. Philippine Sources
a. 1987 Constitution
The 1935 and 1973 Constitutions did not contain any labor-
specific provisions, but they both contained provisions on
freedom of expression/assembly and freedom of association,
rights with which the right to self-organization is connected.
The 1987 Constitution contains provisions specifically
pertaining to labor
• Affirming labor as a primary economic force. (Art. II,
Sec. 18).
• Freedom of expression and assembly, and freedom of
association (Art. III, Secs. 4, 8).
• 7 Cardinal Rights (Art. XIII, Sec. 3)
• Employees of both private and public sectors enjoy the
right to self-organization (Art. IX-B, Sec. 2(5))
1987 Const., Art. II, Sec. 18. The State affirms labor as a
primary social economic force. It shall protect the rights of
workers and promote their welfare.
1987 Const., Art. III, Sec. 4. No law shall be passed abridging
the freedom of speech, of expression, or of the press, or the
right of the people peaceably to assemble and petition the
government for redress of grievances.
1987 Const., Art. III, Sec. 8. The right of the people, including
those employed in the public and private sectors, to form
unions, associations, or societies for purposes not contrary to
law shall not be abridged.
1987 Const., Art. XIII, Sec. 3. The State shall afford full
protection to labor, local and overseas, organized and
unorganized, and promote full employment and equality of
employment opportunities for all.
It shall guarantee the rights of all workers to self-organization,
collective bargaining and negotiations, and peaceful concerted
activities, including the right to strike in accordance with law.
They shall be entitled to security of tenure, humane conditions
of work, and a living wage. They shall also participate in policy
and decision-making processes affecting their rights and
benefits as may be provided by law.
The State shall promote the principle of shared responsibility
between workers and employers and the preferential use of
voluntary modes in settling disputes, including conciliation,
and shall enforce their mutual compliance therewith to foster
industrial peace.
The State shall regulate the relations between workers and
employers, recognizing the right of labor to its just share in the
UP LAW C2017 LABOR 2 (PROF. DAWAY) MIDTERMS REVIEWER | 7
fruits of production and the right of enterprises to reasonable
returns to investments, and to expansion and growth.
1987 Const., Art. IX(B), Sec. 2(5). The right to self-
organization shall not be denied to government employees.
NUEVA ECIJA ELECTRIC COOP (NEECOI) EMPLOYEES ASSO. v.
NLRC (2000)
D: Unfair labor practices violate the constitutional rights of
workers and employees to self-organization, 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), and disrupt industrial peace and hinder the
promotion of healthy and stable labor-management relations.
As the conscience of the government, it is the Court’s sworn
duty to ensure that none trifles with labor rights.
F: NEECO I’s Policy 3-33 ordered employees to apply for either
retirement, resignation or separation from service. Petitioners
filed a case for illegal dismissal and unfair labor practice,
alleging that management singled out union officers, active
members and past members. The LA awarded them exemplary
or moral damages for this reason, but the NLRC deleted the
awards after NEECO I’s appeal.
H: The Court affirmed moral damages as proper but reduced
them because of excessiveness.
b. Labor Code
LC, Art. 249. Coverage and employees’ right to self-
organization. All persons employed in commercial, industrial
and agricultural enterprises and in religious, charitable,
medical, or educational institutions, whether operating for
profit or not, shall have the right to self-organization and to
form, join, or assist labor organizations of their own choosing
for purposes of collective bargaining. Ambulant, intermittent
and itinerant workers, self- employed people, rural workers and
those without any definite employers may form labor
organizations for their mutual aid and protection.
LC, Art. 250. Right of employees in the public service.
Employees of government corporations established under the
Corporation Code shall have the right to organize and to
bargain collectively with their respective employers. All other
employees in the civil service shall have the right to form
associations for purposes not contrary to law.
Relate to: 1987 Constitution, Art. IX-B, Sec. 2(1) The civil
service embraces all branches, subdivisions, instrumentalities,
and agencies of the Government, including government-owned
or controlled corporations with original charters.
LC, Art. 251. Ineligibility of managerial employees to join any
labor organization; right of supervisory employees. Managerial
employees are not eligible to join, assist or form any labor
organization. Supervisory employees shall not be eligible for
membership in the collective bargaining unit of the rank-and-
file employees but may join, assist or form separate collective
bargaining units and/or legitimate labor organizations of their
own. The rank and file union and the supervisors' union
operating within the same establishment may join the same
federation or national union.
Relate to: LC, Art. 218 m. “Managerial employee” is one who is
vested with the powers or prerogatives to lay down and
execute management policies and/or to hire, transfer,

suspend, lay-off, recall, discharge, assign or discipline
employees. Supervisory employees are those who, in the
interest of the employer, effectively recommend such
managerial actions if the exercise of such authority is not
merely routinary or clerical in nature but requires the use of
independent judgment. All employees not falling within any of
the above definitions are considered rank- and-file employees
for purposes of this Book.
Book V, Rule II
COVERAGE OF THE RIGHT TO SELF-ORGANIZATION
Section 1. Policy. - It is the policy of the State to promote the
free and responsible exercise of the right to self-organization
through the establishment of a simplified mechanism for the
speedy registration of labor unions and workers associations,
determination of representation status and resolution of
inter/intra-union and other related labor relations disputes.
Only legitimate or registered labor unions shall have the right
to represent their members for collective bargaining and other
purposes. Workers' associations shall have the right to
represent their members for purposes other than collective
bargaining.
Section 2. Who may join labor unions and worker's
associations. - All persons employed in commercial, industrial
an agricultural enterprises, including employees of
government owned or controlled corporations without original
charters established under the Corporation Code, as well as
employees of religious, charitable, medical or educational
institutions whether operating for profit or not, shall have teh
right to self-organization and to form, join or assist labor
unions for purposes of collective bargaining: provided,
however, that supervisory employees shall not be eligible for
membership in a labor union of the rank-and-file employees
but may form, join or assist separate labor unions of their own.
Managerial employees shall not be eligible to form, join or
assist any labor unions for purposes of collective bargaining.
Alien employees with valid working permits issued by the
Department may exercise the right to self-organization and
join or assist labor unions for purposes of collective
bargaining if they are nationals of a country which grants the
same or similar rights to Filipino workers, as certified by the
Department of Foreign Affairs, or which has ratified either ILO
Convention No. 87 and ILO Convention No. 93.
For purposes of this section, any employee, whether employed
for a definite period or not, shall beginning on the frist day of
his/her service, be eligible for membership in any labor
organization.
All other workers, including ambulant, intermittent and other
workers, the self-employed, rural workers and those without
any definite employers may form labor organizations for their
mutual aid and protection and other legitimate purposes
except collective bargaining. (As amended by DO 40-C-05.)
c. Pre-Labor Code
i. Commonwealth Act No. 103, creating the CIR
ii. Industrial Peace Act (RA 875 of 1953)
UP LAW C2017 LABOR 2 (PROF. DAWAY) MIDTERMS REVIEWER | 8
B. Extent and Scope of Right
The right to self-organization encompasses 2 rights:
1. Right to form, join, or assist labor organizations for
the purpose of collective bargaining through duly
chosen representatives
2. Right to engage in lawful concerted activities for the
same purpose, for mutual aid and protection
What constitutes “abridgement” of this right?
- To “restrain, coerce, discriminate against, or unduly interfere”
with the exercise of the right
LC, Art. 252. Non-abridgment of right to self-organization. It
shall be unlawful for any person to restrain, coerce,
discriminate against or unduly interfere with employees and
workers in their exercise of the right to self-organization. Such
right shall include the right to form, join, or assist labor
organizations for the purpose of collective bargaining through
representatives of their own choosing and to engage in lawful
concerted activities for the same purpose for their mutual aid
and protection, subject to the provisions of Article 264 of this
Code.
REYES v. TRAJANO (1992)
D: The right to self-organization includes the right to organize
or affiliate with a labor union, and subsumed in it is the right
not to join, affiliate with, or assist, and to disaffiliate and resign
from a labor organization.
F: The 141 votes of the petitioners who are members of Iglesia
ni Kristo (INK) were excluded since such was agreed upon by
the competing unions in the pre-election conference. INK
which prohibits its followers from joining labor organizations
filed a petition to cancel the election.
H: The Court ruled in favor of the INK members. See doctrine.
KAPATIRAN v. CALLEJA (1988)
D: Religious affiliation cannot obstruct the exercise of workers’
right to self-organization. The recognition of the tenets of the
sect should not infringe on the basic right of self-organization
granted by the constitution to workers, regardless of religious
affiliation.
F: TUPAS wanted to pressure Universal Robina into signing a
new CBA with it. When a new contender for bargaining unit,
NEW ULO, was formed, TUPAS filed a petition challenging the
order for a certification election, alleging irregularity, since
NEW ULO’s INC members, who form the majority, had not been
involved in any collective bargaining in the past.
H: While the court upheld INC members’ right not to join a
labor union for being contrary to their religious beliefs in
Victoriano vs. Elizalde Rope Workers’ Union, the same decision
does not bar the said members from forming their own union.
PAN-AM WORLD AIRWAYS, INC. v. PAN-AM EMPLOYEES
ASSN. (1969)
D: Right to organize includes the right to choose their own
leaders to speak on their behalf and bargain for them.
F: Airline employees union filed a notice of strike. The
President of the Philippines certified the strike as being an
industrial dispute affecting the national interest. The union
members did not want to resume the work unless its officers
 UP LAW C2017 LABOR 2 (PROF. DAWAY) MIDTERMS REVIEWER | 9

were likewise included in the return-to-work order. Company General rule: all workers enjoy the right to self-organization,
refused to include the officers, alleging that the strike was regardless of whether they are employed in the private or
illegal, being offensive to a no-strike clause in the CBA. public sector (1987 Const., Art. III, Sec. 8).
NOTE: The right to self-organize and the right to form, join, or
H: Union officials have the right to feel offended by the fact assist labor organizations (Art. 250) are DIFFERENT.
that, while they will be paid their salaries, they would not be • ALL persons may organize for a lawful purpose.
considered as fit persons to perform the duties pertaining to • But NOT all persons may form labor organizations.
the positions held by them. The greater offense is to the labor There are persons whom the law and/or
movement itself, more specifically to the right of self- jurisprudence do not allow to form labor
organization. There is both a constitutional and statutory organizations for purposes of collective bargaining
recognition that laborers have the right to form unions to take (e.g. managerial employees).
care of their interests vis-a-vis their employers. Their freedom • Any employee is eligible for membership in a labor
organizations would be rendered nugatory if they could not organization beginning on the FIRST day of his/her
choose their own leaders to speak on their behalf and to service (Book V, Rule II, Sec. 2).
bargain for them.
1987 Constitution
C. Covered Employees/ Workers
Art III, Section 8. The right of the people, including those
CATEGORY NATURE OF RIGHT BASIS employed in the public and private sectors, to form unions,
Persons employed associations, or societies for purposes not contrary to law
in commercial, shall not be abridged.
industrial, and
agricultural Art XIII, Section 3. The State shall afford full protection to
enterprises labor, local and overseas, organized and unorganized, and
For purposes of collective
Persons employed promote full employment and equality of employment
bargaining
in religious, Art. opportunities for all.
charitable, 249;
medical, or FEU- It shall guarantee the rights of all workers to self-organization,
educational NRMF collective bargaining and negotiations, and peaceful
institutions v. concerted activities, including the right to strike in accordance
Ambulant, Trajano with law. They shall be entitled to security of tenure, humane
intermittent, and conditions of work, and a living wage. They shall also
itinerant workers participate in policy and decision-making processes affecting
For purpose of mutual aid and their rights and benefits as may be provided by law.
Self-employed
protection
Rural workers
Those without any The State shall promote the principle of shared responsibility
definite employers between workers and employers and the preferential use of
Gov't corporate For purpose of collective Art. voluntary modes in settling disputes, including conciliation,
employees bargaining 250; EO and shall enforce their mutual compliance therewith to foster
Other employees 180; industrial peace.
in the civil service Const.
For lawful purposes other The State shall regulate the relations between workers and
(excluding gov't Art. IX-
than collective bargaining employers, recognizing the right of labor to its just share in the
corporate B, Sec.
employees) 2 fruits of production and the right of enterprises to reasonable
returns to investments, and to expansion and growth.
Art.
251;
Book V, Rule II, Sec. 2. Who may join labor unions and
Art.
LIMITED right – CANNOT join worker's associations. - All persons employed in commercial,
218(m);
labor organization of the rank- industrial an agricultural enterprises, including employees of
Book V,
Supervisory and-file employees; CAN join, government owned or controlled corporations without original
Rule I,
assist or form separate labor charters established under the Corporation Code, as well as
Sec. 1
organizations of their own employees of religious, charitable, medical or educational
(xx),
(hh), institutions whether operating for profit or not, shall have teh
(nn) right to self-organization and to form, join or assist labor
unions for purposes of collective bargaining: provided,
For purpose of collective
however, that supervisory employees shall not be eligible for
bargaining, but ONLY if:
membership in a labor union of the rank-and-file employees
- Working in the Philippines
Arts. but may form, join or assist separate labor unions of their
with valid permits issued by
Aliens 275, own. Managerial employees shall not be eligible to form, join
the DOLE
276 or assist any labor unions for purposes of collective
- Nationals of a country which
bargaining.
grants same or similar rights
to Filipino workers
Alien employees with valid working permits issued by the
EO 111;
Department may exercise the right to self-organization and
Security guards Meralco
join or assist labor unions for purposes of collective
v. Sec.
bargaining if they are nationals of a country which grants the

same or similar rights to Filipino workers, as certified by the
Department of Foreign Affairs, or which has ratified either ILO
Convention No. 87 and ILO Convention No. 93.
For purposes of this section, any employee, whether employed
for a definite period or not, shall beginning on the frist day of
his/her service, be eligible for membership in any labor
organization.
All other workers, including ambulant, intermittent and other
workers, the self-employed, rural workers and those without
any definite employers may form labor organizations for their
mutual aid and protection and other legitimate purposes
except collective bargaining. (As amended by DO 40-C-05.)
1. Rule
LC, Art 249. Coverage and employees right to self-
organization. All persons employed in commercial, industrial
and agricultural enterprises and in religious, charitable,
medical, or educational institutions, whether operating for
profit or not, shall have the right to self-organization and to
form, join, or assist labor organizations of their own choosing
for purposes of collective bargaining. Ambulant, intermittent
and itinerant workers, self-employed people, rural workers and
those without any definite employers may form labor
organizations for their mutual aid and protection.
FEU-DR NICANOR REYES MED FOUNDATION INC v. TRAJANO
(1987)
D: Art. 244 was amended, now granting employees of non-
stock, non-profit institutions the right to form, join, and
organize labor unions of their choice
F: As early as 1976, respondent AFW had filed a petition for
certification election before the Ministry of Labor. Back then, it
had to be denied by virtue of Art. 244 of the Labor Code, which
prohibited EEs of non-stock, non-profit medical institutions
from joining a union. During the pendency of appeal, Art 244
was amended.
H: Incumbent upon Director to conduct a certification election
to determine their exclusive bargaining representative.
2. Government Corporate Employees
GOV'T CORPORATE EMPLOYEES GOV'T EMPLOYEE
- EEs of gov't corporations - EEs of all branches,
formed under the Corporation subdivisions,
Code and duly registered with instrumentalities, and
the SEC agencies of the
- Governing labor relations law: government, including
Labor Code GOCCs with original
charters from Congress
- Governing labor relations
law: E.O. No. 180
LC, Art. 250. Right of employees in the public service.
Employees of government corporations established under the
Corporation Code shall have the right to organize and to
bargain collectively with their respective employers. All other
employees in the civil service shall have the right to form
associations for purposes not contrary to law.
1987 Constitution
Art IX-B, Section 2. (1) The civil service embraces all
UP LAW C2017 LABOR 2 (PROF. DAWAY) MIDTERMS REVIEWER | 10
branches, subdivisions, instrumentalities, and agencies of the
Government, including government- owned or controlled
corporations with original charters.
(5) The right to self-organization shall not be denied to
government employees.
Book V, Rule II, Sec. 2, par. 1, supra p. 9
EO No. 180 Summary:
• Applies to gov't EEs but not to members of the Armed
Forces, including police officers, policemen, fireman,
and jail guards
• Grants to covered government employees, like their
counterparts in the private sector, the right to engage
in concerted activities. However, these concerted
activities must be in accordance with law, i.e. both
Civil Service Law and rules and any legislation that
may be enacted by Congress.
• Created a Public Sector Labor-Management Council
to which parties may jointly refer to settle disputes
which remain unresolved after exhausting all
available remedies under existing laws and
procedures
• Originally, EO No. 180 granted covered government
employees the right to strike. However, this was
subsequently prohibited by the Civil Service
Commission’s Memorandum Circular No. 6. So now,
government employees covered by EO No. 180 may
organize, unionize, and negotiate employment
conditions fixed by law, but they cannot strike.
3. Supervisory Employees
In the interest of the employer, supervisory employees
effectively recommend managerial actions, and the exercise of
such authority is not routinary or clerical but requires the use
of independent judgment (Art. 218(m); Bk. V, Rule I, Sec. 1(xx))
They are not allowed to join labor organizations of the rank-
and-file employees but may join, assist or form separate labor
organizations of their own (Art. 251).
LC, Art. 251. supra p. 7
LC, Art 218(m). supra p. 7
Book V, Rule I, Sec 1
(xx) “Supervisory employee” refers to an emokiyee who, in the
interest of the employer, effectively recommends managerial
actions and the exercise of such authority is not routinary or
clerical but requires the use of independent judgment
(nn) “Rank-and-file employee” refers to an employee whose
functions are neither managerial nor supervisory in nature
(hh) “Managerial employee” refers to an employee who is
vested with powers or prerogatives to lay down and execute
management policies or to hire, transfer, suspend, layoff,
recall, discharge, assign or discipline employees.
HOLY CHILD CATHOLIC SCHOOL v. SANTO TOMAS AND
HCCS TELU PIGLAS (2013)
D: Commingling of supervisory employees and rank-and-file
employees in one labor organization does not affect the org's
legitimacy and its right to file petition for certification election.

F: PIGLAS filed a petition for certification election. The
employer Holy Child opposed this, saying that the union is an
illegitimate labor organization because of the a) commingling
of teaching and non-teaching personnel and that b) the union
is comprised of supervisory employees and rank and file
employees.
H: Ordered two certification elections to be held—one for the
teaching personnel and another for non-teaching personnel.
TAGAYTAY HIGHLANDS INT’L GOLF CLUB INC v. TAGAYTAY
HIGHLANDS EMPLOYEES UNION (2003)
D: The inclusion in a union of disqualified employees is not
among the grounds for cancellation, unless such inclusion is
due to misrepresentation, false statement or fraud (Art. 239)
F: THEU-PTGWO filed a petition for certification election.
THIGCI opposed THEU’s petition because of the list of union
members submitted, 71 out of 192 signatories to the petition
were actual rank-and-file employees
H: While Art 245 expressly prohibits supervisory employees
from joining rank- and-file unions, it does not provide for the
effect if a rank-and-file union counts supervisory employees
among its members, or vice-versa. It is necessary, before
granting an order allowing cert elec, to inquire into the
composition of any labor org when its status is challenged by
Art 245.
NOTE: Now, Art. 251-A (introduced by RA 9481) provides the
effect of such an inclusion: "The inclusion as union members
of employees outside the bargaining unit shall not be a ground
for the cancellation of the registration of the union. Said
employees are automatically deemed removed from the list of
membership of said union."
4. Aliens
General rule (Art. 275): all aliens and foreign organizations are
strictly prohibited from engaging in trade union activities and
giving donations, grants, or other forms of assistance to an
employers or employers’ organization.
• Exception: aliens may exercise the right to self-
organization and join or assist labor organizations for
purposes of collective bargaining. Requisites:
o Working in the country with valid permits
issued by the Secretary of Labor
o They are nationals of countries which
1. Grants the same or similar rights to Filipino
workers, as certified by DFA, or
2. Ratified ILO Conventions No. 87 and 98
Art. 276 does NOT prohibit foreign individuals, organizations,
or entities from giving assistance to labor organizations/
workers’ groups/ auxiliaries in relation to trade union
activities. It allows them to give assistance, but only with prior
permission from the Secretary of Labor.
Labor Code, Art. 275. Prohibition against aliens; exceptions. -
All aliens, natural or juridical, as well as foreign organizations
are strictly prohibited from engaging directly or indirectly in all
forms of trade union activities without prejudice to normal
contacts between Philippine labor unions and recognized
international labor centers: Provided, however, That aliens
working in the country with valid permits issued by the
Department of Labor and Employment, may exercise the right
UP LAW C2017 LABOR 2 (PROF. DAWAY) MIDTERMS REVIEWER | 11
to self-organization and join or assist labor organizations of
their own choosing for purposes of collective bargaining:
Provided, further, That said aliens are nationals of a country
which grants the same or similar rights to Filipino workers.
LC, Art. 276. Regulation of foreign assistance. - (a) No foreign
individual, organization or entity may give any donations,
grants or other forms of assistance, in cash or in kind, directly
or indirectly, to any labor organization, group of workers or any
auxiliary 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 Secretary of Labor.
"Trade union activities" shall mean:
(1) organization, formation and administration of labor
organization;
(2) negotiation and administration of collective bargaining
agreements;
(3) all forms of concerted union action;
(4) organizing, managing, or assisting union conventions,
meetings, rallies, referenda, teach-ins, seminars,
conferences and institutes;
(5) any form of participation or involvement in
representation proceedings, representation elections,
consent elections, union elections; and
(6) other activities or actions analogous to the foregoing.
(b) This prohibition shall equally apply to foreign donations,
grants or other forms of assistance, in cash or in kind, given
directly or indirectly to any employer or employer’s
organization to support any activity or activities affecting
trade unions.
(c) The Secretary of Labor shall promulgate rules and
regulations to regulate and control the giving and receiving of
such donations, grants, or other forms of assistance, including
the mandatory reporting of the amounts of the donations or
grants, the specific recipients thereof, the projects or activities
proposed to be supported, and their duration.
Bk. V, Rule 2, Sec. 2, par. 1., 3rd sentence: Who may join labor
unions and worker's associations. – Alien employees with
valid working permits issued by the Department may exercise
the right to self-organization and join or assist labor unions
for purposes of collective bargaining if they are nationals of a
country which grants the same or similar rights to Filipino
workers, as certified by the Department of Foreign Affairs, or
which has ratified either ILO Convention No. 87 and ILO
Convention No. 93.
5. Security Guards
EO 111 prohibits “armed persons,” which presumably include
security guards, from bringing in, introducing, or escorting
individuals seeking to replace strikers in entering or leaving
the premises of a strike area, or working in place of the strikers
EO 111 (Dec 24, 1986)
“While therefore under the old rules, security guards were
barred from joining a labor organization of the rank and file,
under RA 6715, they may now freely join a labor organization
of the rank and file or that of the supervisory union, depending
on their rank. By accommodating supervisory employees, the
Secretary of Labor must likewise apply the provisions of RA
6715 to security guards by favorably allowing them free
access to a labor organization, whether rank and file or
supervisory, in recognition of their constitutional right to self-
organization.”
 UP LAW C2017 LABOR 2 (PROF. DAWAY) MIDTERMS REVIEWER | 12

MANILA ELECTRIC CO. v. SEC. (1991) LC, Art. 251, supra p. 7

D: EO 111 eliminated the disqualification of security guards.
While therefore under the old rules, security guards were
barred from joining a labor organization of the rank and file,
under RA 6715, they may now freely join a labor organization
of the rank and file or that of the supervisory union, depending
on their rank.
LC, Art 82. Coverage. As used herein, “managerial employees”
refer to those whose primary duty consists of the
management of the establishment in which they are employed
or of a department or subdivision thereof, and to other officers
or members of the managerial staff.

F: Security guards were not allowed to participate in the LC, Art. 218 (m), supra p. 7
certification election.
Book V, Rule II, Sec. 2., supra p. 9
H: The IRR of RA 6715, insofar as they disqualify security
guards from joining a rank and file organization are null and Book V, Rule I, Sec. 1 (hh), (xx), (nn), supra p. 10
void, for being not germane to the object and purposes of EO
111 and RA 6715 upon which such rules purportedly derive PAPER INDUSTRIES CORP v. LAGUESMA (2000)
statutory moorings. D: 2 kinds of managerial employees: managerial per se and
supervisors. Where such power, recommendatory in character,
D. Excluded Employees/ Workers is subject to evaluation, review and final action by the dept
CATEGORY REASON FOR EXCLUSION BASIS heads and other higher executives in the company is not an
There would be a conflict of exercise of independent judgment as required by law.
Arts. 251,
interest because their
88, F: 3 labor organizations (PBSTSEU, FFW and ALU) were vying
Managerial interests are more aligned
218(m); to be the sole and exclusive bargaining agent of the
with those of the employer
RA 9481 supervisory and technical staff employees of PICOP. During
than of the employees.
Same rationale as the pre-election conference, PICOP questioned the inclusion
Juris- of some section heads and supervisors in the list of voters,
managerial employees
Confidential prudence, claiming that under the reorganization program, they are now
(“doctrine of necessary
infra considered as managerial employees, with the right to hire
implication”)
An owner cannot bargain and fire, thus disqualified from joining any labor organization.
with himself or his co-
owners; not completely Juris- H: The job description of the subject employees show that
Members of a they were not holding managerial but supervisory positions.
excluded – they may form prudence,
cooperative
organizations which are not infra
unions, for the purpose of AD GOTHONG MFG v. SEC CONFESOR (1999)
mutual aid and protection D: Elements to be a member of the managerial staff – primary
Those organizations have duty consists of the performance of work directly related to
been granted immunity management policies; customarily and regularly exercises
from local jurisdiction by Juris- discretion and independent judgment in the performance of
Employees of his functions; regularly and directly assists in the
the Philippine government, prudence,
international orgs management of the establishment; does not devote more than
so Philippine laws don’t infra
apply to them vis-à-vis 20% of his time to work other than those described above.
their employees.
Not completely excluded – Art. 249; F: Yap and Plaza were allowed to vote in the certification
they may form labor Bk. V, election but only on the condition that their votes be
Non-employees organizations, but only for Rule 2, considered challenged because they were supervisory
the purpose of mutual aid Sec. 2, employees.
and protection par. 3
H: They were rank-and-file employees because they did not
1. Managerial Employees exercise any action which would require independent thinking
MANAGERIAL SUPERVISORY to be a managerial employee.
- Includes other officers or - In the interest of the
members of the managerial employer, effectively 2. Confidential Employees
staff recommend managerial
- Primary duty: management actions Employees who by the nature of their functions
of the establishment in which - Exercise of authority 1. Assist or act in a confidential capacity, and
they are employed or of a requires the use of 2. Have access to confidential matters of persons who
department or subdivision independent judgment formulate, determine, and effectuate management
thereof - Test: W/N recommendation policies in the field of labor relations
- Vested with the powers or is: • Do NOT constitute a distinct category with regard to
prerogatives to: - Discretionary or the right to self-organization
- Lay down and execute judgmental (not clerical) • May attach to a managerial position or a non-
management policies - Independent (not a managerial position (e.g. it has been held that legal
- Hire, transfer, suspend, dictation of someone else) secretaries, although they are neither managers no
lay-off, recall, discharge, - Effective (given particular supervisors, are confidential employees)
assign or discipline weight in making the NOTE: Excluded by jurisprudential rule. Nowhere in the law.
employees management decision)

TUNAY NA PAGKAKAISA NG MANGGAGAWA SA ASIAN
BREWERY v. ASIAN BREWERY INC (2010)
D: Extended prohibition to confidential employees - those who
by reason of positions or nature of work are required to assist
or act in a fiduciary manner to managerial employees and are
likewise privy to sensitive and highly confidential records.
F: ABI’s management stopped deducting union dues from
eighty-one (81) employees (secretaries, quality control, etc),
believing that their membership in BLMA-INDEPENDENT
violated the CBA. BLMA-INDEPENDENT claimed that ABI’s
actions restrained the employees’ right to self-organization.
H: They are rank-and-file employees eligible for inclusion in
the union, after ABI was unable to clearly show that they fell
under the category of confidential employees (excluded from
unions, along with managerial employees.
PEPSI COLA v. SEC OF LABOR (1999)
D: In collective bargaining, managerial employees are
supposed to be on the side of the employer. The employer is
not assured of such protection if these employees are union
members. Confidential = managerial by doctrine of necessary
implication.
F: Pepsi Cola Employee’s Organization-UOEF (Union) was part
of a federation, which included rank-and-file employee unions.
Pepsi sought to revoke the charter affiliation of the Union
because Union was composed of managers and supervisors.
H: Managers and supervisors cannot form part of federation
with rank-and-file employees because it would lead to a
conflict of interest in collective bargaining.
STANDARD CHARTERED BANK EMPLOYEES UNION
v. SCB (2008)
D: Jurisprudence has extended the prohibition to confidential
employees.
F: Whether certain employees (bank's Chief Cashiers and
Assistant Cashiers, personnel of the Telex Department and HR
staff) are confidential employees and such should be excluded
from the appropriate bargaining unit?
H: Absent any proof that Chief Cashiers and Asst Cashiers,
personnel of the Telex department and 1 HR Staff have
mutuality of interest with other rank and file employees, then
they are excluded from bargaining unit.
3. Workers-Members of a Cooperative
Employees of a cooperative who are also members or co-
owners thereof cannot invoke the right to collective
bargaining. However, they may form organizations for the
purpose of mutual aid and protection.
Employees of a cooperative who are not members or co-
owners thereof may exercise the rights to self-organization,
collective bargaining, and other rights enshrined in the
Constitution and existing laws.
CENECO v. DOLE (1991)
D: "Employees who at the same time are members of an
electric cooperative are not entitled to form or join unions for
purposes of collective bargaining agreement, for certainly an
UP LAW C2017 LABOR 2 (PROF. DAWAY) MIDTERMS REVIEWER | 13
owner cannot bargain with himself or his co-owners"
F: Several employees were part of the Central Negros Electric
Cooperative, Inc. and chose to withdraw their membership
from the cooperative, to join CENECO Union of Rational
Employees for purposes of a CBA. Withdrawal was opposed by
cooperative.
H: Membership in the cooperative is on voluntary basis — the
right to join an organization necessarily includes right not to
join.
4. Employees of International Organizations
International Organization
• Organization set up by agreement by 2 or more
states, endowed with some degree of international
legal personality, such that they are capable of
exercising specific rights, duties and powers.
• e.g. UN, International Rice Research Institute,
International Catholic Migration Commission
Specialized Agency
• An international organization with a function in a
particular field.
According to the ILO, there are 3 reasons for granting
international organizations immunity from local jurisdiction
(International Catholic Migration Commission v. Calleja):
1. International institutions should have a status which
protects them against control or interference by any
one government in the performance of functions for
the effective discharge of which they are responsible
to democratically constituted international bodies in
which all the nations concerned are represented.
2. No country should derive any national financial
advantage by levying fiscal charges on common
international funds.
3. The international organization should, as a collectivity
of States members, be accorded the facilities for the
conduct of its official business customarily extended
to each other by its individual member States.
The grant of immunity from local jurisdiction is a political
question whose resolution by the Executive Branch is
conclusive upon the courts.
INTERNATIONAL CATHLOIC MIGRATION COMMISSION
v. CALLEJA (1990)
D: Diplomatic immunity is to shield the affairs of international
organizations, in accordance with international practice, from
political pressure or control by the host country to the
prejudice of member States of the organization, and to ensure
the unhampered performance of their functions.
F: TUPAS is petitioning for a certification election among the
employees of ICMC while in IRRI, Kapisanan is asking for the
same. Both organizations opposed on the ground that as
international organizations, they have diplomatic immunity.
H: IRRI and ICMC have diplomatic immunity.
 UP LAW C2017 LABOR 2 (PROF. DAWAY) MIDTERMS REVIEWER | 14

5. Non-Employees LC Art. 252 refers to unfair labor practices committed by

employers. It enumerates 9 ULPs, which can be grouped into 4
Under Art. 249, the right to form labor organizations is also categories:
enjoyed by the ff. non-employees, but only for the purpose of
mutual aid and protection (as opposed to collective CATEGORY ULP NOTES
bargaining): e.g. Dismissal of union
1. Ambulant, intermittent, and itinerant workers members upon their refusal
2. Self-employed people to give up their membership,
3. Rural workers Right to self- under the pretext of
4. Those without any definite employers org retrenchment; Dismissal of
Interference an employee due to her
LC, Art. 249, last sentence: Ambulant, intermittent and with having joined a union, under
itinerant workers, self-employed people, rural workers and the pretext of inefficiency
those without any definite employers may form labor Interference may constitute
organizations for their mutual aid and protection. Formation/
ULP even if committed
admin of
before the union is formally
labor org
SINGER SEWING MACHINE CO v. DRILON (1993) registered.
D: If the control test is not satisfied, there exists no employer- Discrimination is NOT the
employee relationship. If union members are not employees, same as differentiation/
no right to organize for purposes of bargaining, or to be classification.
certified as such bargaining agent. There are valid
T&C of differentiations due to
F: SIMACUB filed a petition for direct certification as sole and employment different job requirements or
exclusive bargaining agent of collectors of the Company. The contributions, e.g.
latter opposed it on the ground that the union members are management classifies jobs
not their employees but are independent contractors. Discrimination and grants them different
in regard to pay or benefits.
H: Union members, as collecting agents, are independent ULP consists in employer’s
contractors and have no right to self-organization for the retaliation against employee.
purpose of collective bargaining. Employer’s motive is
EE who immaterial.
E. Party Protected testifies Nature of employee’s
testimony is immaterial (may
What is entitled to constitutional protection is labor, or more or may not be true; may or
specifically the working men and women, not labor may not be union- related)
organizations. The latter are merely the instrumentalities Duty to
through which their welfare may be promoted and fostered bargain Self-explanatory
Violation of
(Mactan Workers Union v. Aboitiz). collectively
CBA Self-explanatory
The labor union that gets the majority vote as the exclusive Membership/
bargaining representative does not act for its members alone. withdrawal
It represents all the employees in such a bargaining unit as condition Self-explanatory
(Mactan Workers Union v. Aboitiz). of
employment
MACTAN WORKERS UNION v. ABOITIZ (1972) ULP when motivated by
D: Benefits of a collective bargaining agreement extend to the desire to:
laborers and employees in the collective bargaining unit, - Prevent employees from
including those who do not belong to the chosen bargaining organizing and selecting a
labor organization. collective bargaining
representative
Contracting
F: Cebu Shipyard & Engineering Works, Inc. (CSEWI) and Attitude - Get rid of union members
out services/
Associated Labor Union (ALU) had a profit-sharing agreement towards labor - Escape duty to bargain
functions of
with the workers in the CBA (share of 10% of the net organization collectively
members
proceeds). Mactan Workers Union (MWU) was another union NOT ULP if done for
of workers in Cebu Shipping Lines. MWU filed a money claim business reasons, such as:
because they were not given their 10% profit-share by ALU. - Decline in business
- Inadequacy of
H: MWU entitled to share in profit-sharing agreement. equipment
- Need to reduce cost
F. Sanctions for Violations of Right Payment of
Giving financial support to
negotiation/
the union is tantamount to
When it comes to the exercise and protection of the right to attorney’s
company domination of
self-organization, an organization doesn’t necessarily have to fees as part
union.
be a union (it can be an association) and its purpose doesn’t of settlement
necessarily have to be collective bargaining (it can just be for
mutual aid and protection) (Art. 252).
 UP LAW C2017 LABOR 2 (PROF. DAWAY) MIDTERMS REVIEWER | 15

LC Art. 255 refers to unfair labor practices committed by labor OFFENSE FILIPINO ALIEN
organizations. It enumerates 6 ULPs, which can be grouped 1. Same fine,
into 3 categories: 1. Fine (Php1,000-
imprisonment, or
Php10,000)
fine/imprisonment
Violation of 2. Imprisonment (3
CATEGORY ULP NOTES combo as a Filipino
LC provisions mos- 3yrs), or
In the exercise e.g. union threatens violator, and
Restraint/c 3. Both fine and
of their right to employees with bodily harm 2. Summary
oercion of imprisonment
self- or loss of their jobs in order to deportation
employees
organization force them to strike 1. Fine (Php1,000-
Violation of
Duty to Php10,000)
provisions of
bargain Self-explanatory 2. Imprisonment (3
Violation of Art. 270 Same as Filipino
collectively mos- 3yrs), or
(prohibited
CBA Self-explanatory 3. Both fine and
activities)
A union member can’t be imprisonment
expelled from the union and 1. Same fine,
then dismissed: imprisonment, or
Discriminate - For personal reasons Violation of fine/imprisonment
against - For causes not included in Title VII 1. Fine (Php1,000- combo as a Filipino
employee the closed-shop (strikes and Php10,000) violator
agreement, if any lockouts and 2. Imprisonment (3 2. Immediate and
- In an arbitrary or whimsical foreign mos- 3yrs), or summary deportation
manner involvement 3. Both fine and 3. Permanently barred
Practice of creating/ in trade union imprisonment from re- entering the
spreading employment by activities) country (Exception:
Pay/deliver using more employees or special permission
Causing or from President)
money or other taking more time than is
requesting
things of value necessary for a particular job.
employer to
for services It’s a ULP because it’s Prosecution under Art. 278 precludes prosecution for the same
not performed considered economically act under the RPC, and vice versa.
wasteful. This is called
“featherbedding”. Regular courts have jurisdiction over criminal actions under
This is not only unlawful, but Art. 278, which punishes violations of Art. 270.
immoral, because the union is All criminal offenses punished in the Labor Code shall be
Pay under the concurrent jurisdiction of the ff.:
basically selling out. The
negotiation or 1. Municipal Courts
resulting CBA would probably
attorney’s fees 2. City Courts
be a “sweetheart contract,”
as part of 3. Courts of First Instance
i.e. doesn’t substantially
settlement
improve employees’ wages
and benefits. LC, Art. 252. Non-abridgment of right to self-organization. It
shall be unlawful for any person to restrain, coerce,
Criminal liability for ULPs differs depending on who discriminate against or unduly interfere with employees and
participated in, authorized, and ratified ULPs: workers in their exercise of the right to self-organization. Such
right shall include the right to form, join, or assist labor
WHO COMMITTED ULP? WHO IS CRIMINALLY LIABLE? organizations for the purpose of collective bargaining through
Employer 1. Officers representatives of their own choosing and to engage in lawful
2. Agents concerted activities for the same purpose for their mutual aid
Labor organization 1. Officers and protection, subject to the provisions of Article 264 of this
2. Members of governing Code.
boards
3. Representatives LC, Art. 254. Unfair labor practices of employers. It shall be
4. Agents unlawful for an employer to commit any of the following unfair
5. Members labor practice:
1) To interfere with, restrain or coerce employees in the
LC Art. 270 enumerates 5 prohibited activities, which can be exercise of their right to self-organization;
summarized as follows: (LP BAO) 2) To require as a condition of employment that a person or
1. Unlawful strike or Lockout an employee shall not join a labor organization or shall
2. Obstruction/interference with peaceful Picketing withdraw from one to which he belongs;
3. Strike-Breaker
4. Unnecessary involvement of public official/employee LC, Art. 255. Unfair labor practices of labor organizations. It
or Armed person shall be unfair labor practice for a labor organization, its
5. Obstruction of ingress/egress officers, agents or representatives:
1) To restrain or coerce employees in the exercise of their
Filipinos and aliens/foreigners are punished similarly (but not right to self- organization. However, a labor organization
exactly the same) for violations of the right to self-organize. shall have the right to prescribe its own rules with respect
to the acquisition or retention of membership;
2) To cause or attempt to cause an employer to discriminate

against an employee, including discrimination against an
employee with respect to whom membership in such
organization has been denied or to terminate an employee
on any ground other than the usual terms and conditions
under which membership or continuation of membership
is made available to other members;
LC, Art. 294. Penalties. Except as otherwise provided in this
Code, or unless the acts complained of hinge on a question of
interpretation or implementation of ambiguous provisions of
an existing collective bargaining agreement, 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 One
Thousand Pesos (P1,000.00) nor more than Ten Thousand
Pesos (P10,000.00) or imprisonment of not less than three
months nor more than three years, or both such fine and
imprisonment at the discretion of the court.
In addition to such penalty, any alien found guilty shall be
summarily deported upon completion of service of sentence.
Any provision of law to the contrary notwithstanding, any
criminal offense punished in this Code, shall be under the
concurrent jurisdiction of the Municipal or City Courts and the
Courts of First Instance.
LC, Art. 295. Who are liable when committed by other than
natural person. If 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.
LC, Art. 278. Penalties.
(1) Any person violating any of the provisions of Article 264 of
this Code shall be punished by a fine of not less than one
thousand pesos (P1,000.00) nor more than ten thousand
pesos (P10,000.00) and/or imprisonment for not less than
three months nor more than three (3) years, or both such fine
and imprisonment, at the discretion of the court. Prosecution
under this provision shall preclude prosecution for the same
act under the Revised Penal Code, and vice versa.
(2) Upon the recommendation of the Minister of Labor and
Employment and the Minister of National Defense, foreigners
who violate the provisions of this Title shall be subject to
immediate and summary deportation by the Commission on
Immigration and Deportation and shall be permanently barred
from re-entering the country without the special permission of
the President of the Philippines.
in rel. to LC, Art. 270. Prohibited activities.
(1) No labor organization or employer shall declare a strike or
lockout without first having bargained collectively in
accordance with Title VII of this Book or without first having
filed the notice required in the preceding Article or without the
necessary strike or lockout vote first having been obtained and
reported to the Ministry.
No strike or lockout shall be declared after assumption of
jurisdiction by the President or the Minister or after
certification or submission of the dispute to compulsory or
voluntary arbitration or during the pendency of cases involving
the same grounds for the strike or lockout.
Any worker whose employment has been terminated as a
consequence of any unlawful lockout shall be entitled to
UP LAW C2017 LABOR 2 (PROF. DAWAY) MIDTERMS REVIEWER | 16
reinstatement with full backwages. Any union officer who
knowingly participates in an illegal strike and any worker or
union officer who knowingly participates in the commission of
illegal acts during a strike may be declared to have lost his
employment status: Provided, That mere participation of a
worker in a lawful strike shall not constitute sufficient ground
for termination of his employment, even if a replacement had
been hired by the employer during such lawful strike.
(2) No person shall obstruct, impede, or interfere with, by force,
violence, coercion, threats or intimidation, any peaceful
picketing by employees during any labor controversy or in the
exercise of the right to self-organization or collective
bargaining, or shall aid or abet such obstruction or
interference.
(3) No employer shall use or employ any strike-breaker, nor
shall any person be employed as a strike-breaker.
(4) No public official or employee, including officers and
personnel of the New Armed Forces of the Philippines or the
Integrated National Police, or armed person, shall bring in,
introduce or escort in any manner, any individual who seeks to
replace strikers in entering or leaving the premises of a strike
area, or work in place of the strikers. The police force shall
keep out of the picket lines unless actual violence or other
criminal acts occur therein: Provided, That nothing herein shall
be interpreted to prevent any public officer from taking any
measure necessary to maintain peace and order, protect life
and property, and/or enforce the law and legal order. (As
amended by Executive Order No. 111, December 24, 1986)
(5) No person engaged in picketing shall commit any act of
violence, coercion or intimidation or obstruct the free ingress
to or egress from the employer’s premises for lawful purposes,
or obstruct public thoroughfares.
IV. LABOR ORGANIZATION .
A. Policy
• Promote free trade unionism as an instrument for the
enhancement of democracy and the promotion of
social justice and development
• Foster free and voluntary organization of a strong and
united labor movement
• Ensure participation of workers in decision and
policy-making processes affecting their rights, duties,
and welfare
• Determination of exclusive bargaining agent shall be
non-litigious and free from technicalities of law and
procedure.
LC, Art. 217 A (a), (b), (c), (g); and 217 B
A. It is the policy of the State:
(a) To promote and emphasize the primacy of free collective
bargaining and negotiations, including voluntary
arbitration, mediation and conciliation, as modes of
settling labor or industrial disputes;
(b) To promote free trade unionism as an instrument for the
enhancement of democracy and the promotion of social
justice and development
(c) To foster the free and voluntary organization of a strong
and united labor movement
(g) To ensure the participation of workers in decision and
policy-making processes affecting their rights, duties and
welfare.

B. To encourage a truly democratic method of regulating the
relations between the employers and employees by means of
agreements freely entered into through collective bargaining,
no court or administrative agency or official shall have the
power to set or fix wages, rates of pay, hours of work or other
terms and conditions of employment, except as otherwise
provided under this Code
Book V, Rule VI, Sec. 1. Policy – It is the policy of the State to
promote free trade unionism through expeditious procedures
governing the choice of an exclusive bargaining agent. The
determination of such exclusive bargaining agent is a non-
litigious proceeding and, as far as practicable, shall be free
from technicalities of law and procedure, provided only that in
every case, the exclusive bargaining agent enjoys the majority
support of all the employees in the bargaining unit
B. Definition: Labor Organizations/ Unions
LC, Art. 217 A (a), (b), (c), (g), supra p. 16
LC, Art. 218 (g), (h), (i), (j)
(g) "Labor organization" means any union or association of
employees which exists in whole or in part for the purpose
of collective bargaining or of dealing with employers
concerning terms and conditions of employment.
(h) "Legitimate labor organization" means any labor
organization duly registered with the Department of Labor
and Employment, and includes any branch or local
thereof.
(i) "Company union" means any labor organization whose
formation, function or administration has been assisted
by any act defined as unfair labor practice by this Code.
(j) "Bargaining representative" means a legitimate labor
organization whether or not employed by the employer.
Book V, Rule I, Sec. 1 (cc) (ee)
(cc) "Registration Proceedings" refer to proceedings involving
the application for registration of labor organizations.
(ee) "Hearing Officers" are officers appointed/designated in the
Regional Office and authorized to hear and decide cases
under Section 2 of Republic Act No. 6715 and whose
decision is appealable to the Commission.
D.O. 40- B-03, s. 2004 - amended Rule I, Sec. 1(i), infra and
Rule III, Sec. 2(e), infra p. 20
Omnibus Rules, Book V, Rule I, Sec. 1 (ff) (zz) (ccc) (t) (i)
(ff) “Legitimate Workers’ Association” refers to an association
of workers organized for mutual aid and protection of its
members or for any legitimate purpose other than
collective bargaining registered with the Department in
accordance with Rule III, Sections 2 of these Rules.
(zz) “Union” refers to any labor organization in the private
sector organized for collective bargaining and for other
legitimate purposes.
(ccc) “Workers’ Association” refers to an association of
workers organized for the mutual aid and protection of its
members or for any legitimate purpose other than
collective bargaining
(t) “Exclusive Bargaining Representative” refers to a legitimate
labor union duly recognized or certified as the sole and
exclusive bargaining representative or agent of all the
employees in a bargaining unit.
(i) “Chartered Local” refers to a labor organization in the
private sector operating at the enterprise level that
UP LAW C2017 LABOR 2 (PROF. DAWAY) MIDTERMS REVIEWER | 17
acquired legal personality through the issuance of a
charter certificate by a duly registered federation or
national union, and reported to the Regional Office in
accordance with Rule III, Section 2-E of these Rules.
D.O. 40-B-03 amendment for this reads:
(i) “Chartered Local” refers to a labor organization in the
private sector operating at the enterprise level that
acquired legal personality through registration with the
Regional Office in accordance with Rule III, Section 2-E of
these Rules.
1. Labor Organization
LC, Art. 218 (g), supra
Book V, Rule I, Sec. 1 (cc), supra
Union
Book V, Rule I, Sec. 1 (zz) , supra
Workers Association
Book V, Rule I, Sec. 1 (ccc), supra
C. Union Rationale
The union is nothing but the means of assuring that the
fundamental objectives of the State (promoting full
employment and equality in employment, ensuring equal work
opportunities, etc.) laid down in the Constitution would be
achieved. It is the instrumentality through which the employer
can achieve the goal of economic well-being.
GUIJARNO v. CIR (1973)
D: When the union itself oppresses the laborers, laborers
should be given protection against it the same way it is being
protected against oppressive employers. Unions are for
employees’ protection.
F: Petitioners were dismissed by Central Santos Lopez Co,
due to a closed shop provision (the employer can dismiss a
laborer if he is terminated from the union) which was
prevailing at the time of their dismissal, but not when they
were hired.
H: Illegal dismissal. The provision should not be applied
retroactively.
D. Government Regulation:
Implementing the Policy on Trade Unionism
1987 Const., Art. III. Sec. 16: All persons shall have the right to
a speedy disposition of their cases before all judicial, quasi-
judicial, or administrative bodies.
LC, Art. 217 A (b) (c), supra p. 16
Book V, Rule VI, Sec. 1, supra p. 17
ELECTROMAT v. HON. LAGUNZAD (2011)
D: It is government policy to encourage the affiliation of a local
union with a federation or national union to enhance the
local's bargaining power
F: Electromat argued that D.O. 40-03 (which reduces
requirements for local chapters) was an unconstitutional
reduction of the LC union registration requirement.

H: D.O. valid, expresses government policy of promoting
unionism.
1. Union Registration: Procedure
a. Requirements
For federations, national unions, or industry or trade union
center or an independent union (Art. 240):
1. P50.00
2. Names of officers, addresses, principal address of the
labor organization, minutes of the organizational
meetings, and list of workers who participated in the
meetings
3. If independent union, the name of all members
comprising at least 20% of all the employees in the
bargaining unit
4. If union has been in existence for one or more years,
the copies of its annual financial reports
5. Four copies of the Constitution and by-laws of the
applicant union, minutes of its adoption of
ratification, and the list of the members who
participated in it.
Additional requirements for federations or national unions:
1. Proof of the affiliation of at least 10 locals or chapters
supporting the registration of such applicant
federation or national union. The locals or chapters
must be a duly recognized collective bargaining agent
in the establishment or industyry where it operates.
2. Names and addresses of the companies where the
locals or chapters operate, and the list of all the
members in each company.
For local chapters (Art. 234-A):
1. Names of chapter’s officers, addresses, and the
principal office of the chapter
2. The chapter’s constitution and by-laws. If these are
the same as the Constitution and by-laws of the
federation or national union, such fact shall be
indicated.
3. Charter certificate from the registered federation or
national union.
4. The requirements shall be certified under oath by the
secretary or treasurer of the chapter and attested by
its president.
Requirements under the Implementing Rules:
Note: There is no conflict between the requirements under the
Labor Code and the Implementing Rules. They have just been
separately listed down in the Implementing Rules.
For independent labor unions:
1. Name of the applicant labor union, principal address,
name of its officers, their respective addresses,
approximate number of employees in the bargaining
unit where it seeks to operate, with a statement that it
is not reported as a chartered local of any federation
or national union.
2. the minutes of the organizational meetings and the
list of employees who participated in the said
meetings
3. the name of all its members comprising at least 20%
of the employees in the bargaining unit
4. the annual financial reports if the applicant has been
in existence for one or more years, unless it has not
collected any amount from the members, in which
UP LAW C2017 LABOR 2 (PROF. DAWAY) MIDTERMS REVIEWER | 18
case a statement to this effect shall be included in
the application
5. the applicant's constitution and by-laws, minutes of
its adoption or ratification, and the list of the
members who participated in it. The list of ratifying
members shall be dispensed with where the
constitution and by-laws was ratified or adopted
during the organizational meeting. In such a case, the
factual circumstances of the ratification shall be
recorded in the minutes of the organizational
meeting(s).
For federations and national unions:
1. Statement indicating the name of the applicant labor
union, its principal address, the name of its officers
and their respective addresses;
2. Minutes of the organizational meetings and the list of
employees who participated in the said meetings;
3. If it has been in existence for one or more years,
Annual financial reports. Unless it has not collected
any amount from the members, in which case a
statement to this effect shall be included in the
application;
4. The applicant union's constitution and by-laws,
minutes of its adoption or ratification, and the list of
the members who participated in it.
5. The list of ratifying members shall be dispensed with
where the constitution and by-laws was ratified or
adopted during the organizational meetings. In such a
case, the factual circumstances of the ratification
shall be recorded in the minutes of the organizational
meetings.
6. The resolution of affiliation of at least 10 legitimate
labor organizations, whether independent unions or
chartered locals
7. The name and addresses of the companies where the
affiliates operate and the list of all the members in
each company involved.
8. Labor organizations operating within an identified
industry may also apply for registration as a
federation or national union within the specified
industry by submitting to the Bureau the same set of
documents.
For workers’ associations:
1. The name of the applicant association, its principal
address, the name of its officers and their respective
addresses;
2. The minutes of the organizational meeting(s) and the
list of members who participated therein;
3. The financial reports of the applicant association if it
has been in existence for one or more years, unless it
has not collected any amount from the members, in
which case a statement to this effect shall be
included in the application;
4. The applicant's constitution and by-laws to which
must be attached the names of ratifying members,
the minutes of adoption or ratification of the
constitution and by-laws and the date when
ratification was made, unless ratification was done in
the organizational meeting(s), in which case such fact
shall be reflected in the minutes of the organizational
meeting(s).
For chartered local:
1. The names of the local/chapter’s officers, their
addresses, and the principal office of the local
chapter, and

2. The chapter’s constitution and by-laws, provided, that
where the chapter’s constitution and by- laws are the
same as that of the federation or the national union,
this fact shall be indicated accordingly.
3. Charter certificate issued by a duly-registered
federation or national union.
4. The documents shall be certified under oath by the
secretary or treasurer of the local/chapter and
attested to by its President.
• Local chapters acquire legal personality ONLY for the
purposes of filing a petition for certification election
from the date it was issued a charter certificate.
• Local unions are considered principals while the
federation is the agent. Mere affiliation does not
divest the local union of its own personality. The
mother federation cannot does not automatically
have license to act independently of the local union.
• The Bureau of Labor Relations shall act on all
applications for registration within 30 days from
filing. It may approve the application and issue the
certification or deny the application for failure to
comply with requirements.
• If the requirements are incomplete, the Regional
Office or the Bureau shall notify the applicant
concerned of the necessary requirements within 5
days from receipt of application. The applicant must
complete the requirements within 30 days from
receipt of notice.
• The denial of the petition for registration may be
appealed by the applicant to the Bureau within 10
days from receipt of notice. The appeal shall be
decided within 20 days from receipt of the records of
the case.
LC, Art. 240 (as amended by RA 9481), Requirements of
Registration – A federation, national union or industry or trade
union center or an independent union shall acquire legal
personality and shall be entitled to the rights and privileges
granted by law to legitimate labor organizations upon
issuance of the certificate of registration based on the
following requirements:
(a) Fifty pesos (P50.00) registration fee;
(b) The names of its officers, their addresses, the principal
address of the labor organization, the minutes of the
organizational meetings and the list of the workers who
participated in such meetings;
(c) In case the applicant is an independent union, the names
of all its members comprising at least twenty percent
(20%) of all the employees in the bargaining unit where it
seeks to operate;
(d) If the applicant union has been in existence for one or
more years, copies of its annual financial reports; and
(e) Four copies of the constitution and by-laws of the
applicant union, minutes of its adoption or ratification, and
the list of the members who participated in it
LC, Art. 240-A. Chartering and Creation of a Local Chapter- A
duly registered federation or national union may directly create
a local chapter by issuing a charter certificate indicating the
establishment of the local chapter. The chapter shall acquire
legal personality only for purposes of filing a petition for
certification election from the date it was issued a charter
certificate.
(b) The chapter shall be entitled to all other rights and
UP LAW C2017 LABOR 2 (PROF. DAWAY) MIDTERMS REVIEWER | 19
privileges of a legitimate labor organization only upon the
submission of the following documents in addition to its
charter certificate:
(a) The names of the chapter's officers, their addresses, and
the principal office of the chapter; and
(b) The chapter's constitution and by-laws:
Provided, That where the chapter's constitution and by-laws
are the same as that of the federation or the national union,
this fact shall be indicated accordingly.
The additional supporting requirements shall be certified
under oath by the secretary or treasurer of the chapter and
attested by its president.
LC, Art. 243. Additional requirements for federations or
national unions. Subject to Article 238, if the applicant for
registration is a federation or a national union, it shall, in
addition to the requirements of the preceding Articles, submit
the following:
(a) Proof of the affiliation of at least ten (10) locals or
chapters, each of which must be a duly recognized
collective bargaining agent in the establishment or
industry in which it operates, supporting the registration
of such applicant federation or national union; and
(b) The names and addresses of the companies where the
locals or chapters operate and the list of all the members
in each company involved
LC, Art. 241. Action on application – The Bureau shall act on
all applications for registration within thirty (30) days from
filing. All requisite documents and papers shall be certified
under oath by the secretary or the treasurer of the
organization, as the case may be, and attested to by its
president.
LC, Art. 218 (b) “Bureau” means the Bureau of Labor Relations
and/or the Labor Relations Divisions in the regional offices
established under Presidential Decree No. 1, in the Department
of Labor.
Book V, Rule III, Sec. 2 – Requirements for application.
A. The application for registration of an independent labor
union shall be accompanied by the following documents:
1) the name of the applicant labor union, its principal
address, the name of its officers and their respective
addresses, approximate number of employees in the
bargaining unit where it seeks to operate, with a
statement that it is not reported as a chartered local of
any federation or national union;
2) the minutes of the organizational meeting(s) and the list
of employees who participated in the said meeting(s);
3) the name of all its members comprising at least 20% of
the employees in the bargaining unit;
4) the annual financial reports if the applicant has been in
existence for one or more years, unless it has not
collected any amount from the members, in which case a
statement to this effect shall be included in the
application;
5) the applicant's constitution and by-laws, minutes of its
adoption or ratification, and the list of the members who
participated in it. The list of ratifying members shall be
dispensed with where the constitution and by-laws was
ratified or adopted during the organizational meeting.
In such a case, the factual circumstances of the ratification

shall be recorded in the minutes of the organizational
meeting(s).
B. The application for registration of federations and national
unions shall be accompanied by the following documents:
1) a statement indicating the name of the applicant labor
union, its principal address, the name of its officers and
their respective addresses;
2) the minutes of the organizational meeting(s) and the list
of employees who participated in the said meeting(s);
3) the annual financial reports if the applicant union has
been in existence for one or more years, unless it has not
collected any amount from the members, in which case a
statement to this effect shall be included in the
application;
4) the applicant union's constitution and by-laws, minutes of
its adoption or ratification, and the list of the members
who participated in it. The list of ratifying members shall
be dispensed with where the constitution and by-laws
was ratified or adopted during the organizational
meeting(s). In such a case, the factual circumstances of
the ratification shall be recorded in the minutes of the
organizational meeting(s);
5) the resolution of affiliation of at least ten (10) legitimate
labor organizations, whether independent unions or
chartered locals, each of which must be a duly certified or
recognized bargaining agent in the establishment where it
seeks to operate; and
6) the name and addresses of the companies where the
affiliates operate and the list of all the members in each
company involved. Labor organizations operating within
an identified industry may also apply for registration as a
federation or national union within the specified industry
by submitting to the Bureau the same set of documents.
C. The application for registration of a workers’ association
shall be accompanied by the following documents:
1) the name of the applicant association, its principal
address, the name of its officers and their respective
addresses;
2) the minutes of the organizational meeting(s) and the list
of members who participated therein;
3) the financial reports of the applicant association if it has
been in existence for one or more years, unless it has not
collected any amount from the members, in which case a
statement to this effect shall be included in the
application;
4) the applicant's constitution and by-laws to which must be
attached the names of ratifying members, the minutes of
adoption or ratification of the constitution and by-laws
and the date when ratification was made, unless
ratification was done in the organizational meeting(s), in
which case such fact shall be reflected in the minutes of
the organizational meeting(s).
D. Application for registration of a workers' association
operating in more than one region shall be accompanied, in
addition to the requirements in the preceding subsection, by a
resolution of membership of each member association, duly
approved by its board of directors.
E. The report of creation of a chartered local shall be
accompanied by a charter certificate issued by the federation
or national union indicating the creation or establishment of
the chartered local.
UP LAW C2017 LABOR 2 (PROF. DAWAY) MIDTERMS REVIEWER | 20
1. 20% Membership requirement
LC, Art. 240, supra p. 19
MARIWASA SIAM CERAMICS v. SEC. OF LABOR (2009)
D: The 20% requirement is reckoned at the time of application
for union registration. Those who resign after the union’s
registration has been granted are still counted in the
membership requirement.
F: Mariwasa wanted to disqualify SMMSC-Independent as an
active labor union for failing to comply with the 20%
membership requirement—some members presented
affidavits claiming they were forced to join. Two signatures
also repeated themselves on the union membership list, and
four were no longer connected with Mariwasa.
H: At the time of the filing of the petition, the union was
composed of more than 20% of Mariwasa employees. The fact
that two names appeared twice is not necessarily fraud or
misrepresentation—and the affidavits were clearly prepared in
advance and do not identify those who allegedly forced them
to join. Withdrawals made after the granting of the registration
are presumed to be made fraudulently.
2. Registration Proceeding
Omnibus Rules, Book V, Rule I, Sec 1 (qq)
(qq) “Registration” refers to the process of determining
whether the application for registration of a union or workers’
association and collective bargaining agreement complies
with the documentary requirements for registration prescribed
in Rules III, IV, and XVII of these Rules.
1st Mode: Issuance of Union Registration
LC, Arts. 240 and 241, supra p. 19
Book V, Rule III, Sec. 2(A), supra p. 19
2nd Mode: Union Affiliation
LC Art. 240-A, supra p. 19
Omnibus Rules, Book V, Rule 1, Sec. 1(a)
(a) “Affiliate” refers to an independent union affiliated with a
federation, national union or a chartered local which was
subsequently granted independent registration but did not
disaffiliate from its federation, reported to the Regional Office
and the Bureau in accordance with Rule III, Sections 6 and 7 of
these Rules
Book V, Rule III, Sec. 2 (e) as amended by DO 40-B-03, sec. 3;
DO 40-F-03
E. A duly-registered federation or national union may directly
create a local/chapter by issuing a charter certificate
indicating the establishment of the local/chapter. The
local/chapter shall acquire legal personality only for purposes
of filing a petition for certification election from the date it was
issued a charter certificate.
The local/chapter shall be entitled to all other rights and
privileges of a legitimate labor organization only upon the
submission of the following documents in addition to its
charter certificate:
a. the names of the local/chapter’s officers, their addresses,

and the principal office of the local chapter, and
b. the chapter’s constitution and by-laws, provided, that
where the chapter’s constitution and by-laws are the
same as that of the federation or the national union, this
fact shall be indicated accordingly. The genuineness and
due execution of the supporting requirements shall be
certified under oath by the secretary or treasurer of the
local/chapter and attested to by its President.
a. Effect of Affiliation with a National Union
COASTAL SUBIC BAY V. DOLE (2006)
D: Affiliation gives rise to a relationship of agency, where the
national union is the agent, and the local one is the principal.
Thus local unions exercise the rights and privileges of a
legitimate labor organization, including the right to seek
certification as the sole and exclusive bargaining agent.
F: CBSTI-RFU and CSBTI-SU filed separate petitions for
certification election before the Med-Arbiter. The rank-and-file
union insists that it is a legitimate labor organization having
been issued a charter certificate by the ALU, and the
supervisory union by the APSOTEU. The Company opposed.
H: RFU and SU cannot obtain the status of legitimate labor
organizations as long as they are affiliated with their national
unions. There is a common set of officers, creating possible
conflict of interest among said officers.
b. Action on Application
LC, Art. 241, supra p. 19
LC, Art. 242 - Denial of registration; appeal. The decision of
the Labor Relations Division in the regional office denying
registration may be appealed by the applicant union to the
Bureau within ten (10) days from receipt of notice thereof.
Omnibus Rules, Book V, Rule IV, Sec. 4-7
Section 4. Action on the application/notice. The Regional
Office or the Bureau, as the case may be, shall act on all
applications for registration or notice of change of name,
affiliation, merger and consolidation within ten (10) days from
receipt either by: (a) approving the application and issuing the
certificate of registration/acknowledging the notice/report; or
(b) denying the application/notice for failure of the applicant to
comply with the requirements for registration/notice.
Section 5. Denial of Application/Return of Notice. Where the
documents supporting the application for registration/notice
of change of name, affiliation, merger and consolidation are
incomplete or do not contain the required certification and
attestation, the Regional Office or the Bureau shall, within five
(5) days from receipt of the application/notice, notify the
applicant/labor organization concerned in writing of the
necessary requirements and complete the same within thirty
(30) days from receipt of notice. Where the applicant/labor
organization concerned fails to complete the requirements
within the time prescribed, the application for registration shall
be denied, or the notice of change of name, affiliation, merger
and consolidation returned, without prejudice to filing a new
application or notice.
Section 6. Form of Denial of Application/Return of Notice;
Appeal. The notice of the Regional Office or the Bureau
UP LAW C2017 LABOR 2 (PROF. DAWAY) MIDTERMS REVIEWER | 21
denying the application for registration/returning the notice of
change of name, affiliation, merger or consolidation shall be in
writing stating in clear terms the reasons for the denial or
return. The denial may be appealed to the Bureau if denial is
made by the Regional Office or to the Secretary if denial is
made by the Bureau, within ten (10) days from receipt of such
notice, on the ground of grave abuse of discretion or violation
of these Rules.
Section 7. Procedure on appeal. The memorandum of appeal
shall be filed with the Regional Office or the Bureau that issued
the denial/return of notice. The memorandum of appeal
together with the complete records of the application for
registration/notice of change of name, affiliation, merger or
consolidation, shall be transmitted by the Regional Office to
the Bureau or by the Bureau to the Office of the Secretary,
within twenty-four (24) hours from receipt of the
memorandum of appeal. The Bureau or the Office of the
Secretary shall decide the appeal within twenty (20) days from
receipt of the records of the case.
PROGRESSIVE DEV. CORP-PIZZA HUT v. LAGUESMA (1997)
D: Local union must first comply with statutory requirements
in order to exercise their right. After a labor organization has
filed the necessary papers and documents for registration, it
becomes mandatory for the Bureau of Labor Relations to
check if the requirements under Art. 234 have been complied
with.
F: NLM-Katipunan filed a petition for certification. Progressive
Dev. Corp. filed multiple motions to dismiss alleging fraud,
falsification and misrepresentation in the chapter membership
list and the dates of issuance of the charter certification and
organizational meeting.
H: Remanded to Med-Arbiter to look into the allegations of
fraud and possible cancellation of certificate.
c. Effect of Registration
Book V, Rule IV, Sec. 8. Effect of registration - The labor union
or workers’ association shall be deemed registered and vested
with legal personality on the date of issuance of its certificate
of registration or certificate of creation of chartered local. Such
legal personality may be questioned only through an
independent petition for cancellation of union registration in
accordance with Rule XIV of these Rules, and not by way of
collateral attack in petition for certification election
proceedings under Rule VIII.
Acquisition of Legal Personality/Statutory Paradigm
LC, Arts. 240 and 240-A, supra p. 19
Book V, Rule III, Sec. 2 (e) as amended, supra p. 21
SM MANDAUE PACKAGING v. MANDAUE PACKAGING (2005)
D: Applying D.O. 9, upon compliance with all the documentary
requirements, the Regional Office or Bureau shall issue in
favor of the local/chapter a certificate indicating that it is
included in the roster of legitimate labor organizations.
F: Respondent union led a petition for certification election
with DOLE, submitting the required documents, including a
Charter Certificate issued by the Federation. It submitted the
same on to the Bureau of Labor Relations for the creation of a
local chapter. Mandaue asserts that the union was not a

legitimate labor organization at the time of filing the Petition
for Certification Election.
H: Union is a legitimate labor organization. Its legal
personality relies partly on that of the national union, which
was already evaluated and approved by the BLR.
d. Rights of Legitimate Labor Organization
LC, Art. 248 - Rights of legitimate labor organizations.
A legitimate labor organization shall have the right:
a. To act as the representative of its members for the
purpose of collective bargaining;
b. To be certified as the exclusive representative of all the
employees in an appropriate bargaining unit for purposes
of collective bargaining;
c. To be furnished by the employer, upon written request,
with its annual audited financial statements, including the
balance sheet and the profit and loss statement, within
thirty (30) calendar days from the date of receipt of the
request, after the union has been duly recognized by the
employer or certified as the sole and exclusive bargaining
representative of the employees in the bargaining unit, or
within sixty (60) calendar days before the expiration of the
existing collective bargaining agreement, or during the
collective bargaining negotiation;
d. To own property, real or personal, for the use and benefit
of the labor organization and its members
e. To sue and be sued in its registered name; and;
f. To undertake all other activities designed to benefit the
organization and its members, including cooperative,
housing, welfare and other projects not contrary to law.
Notwithstanding any provision of a general or special law to
the contrary, the income and the properties of legitimate labor
organizations, including grants, endowments, gifts, donations
and contributions they may receive from fraternal and similar
organizations, local or foreign, which are actually, directly and
exclusively used for their lawful purposes, shall be free from
taxes, duties and other assessments. The exemptions
provided herein may be withdrawn only by a special law
expressly repealing this provision.
SAN MIGUEL FOODS v. LAGUESMA (1996)
D: A union is an entity separate and distinct from its members
and officers. It is the right of legitimate labor organizations to
be certified as the exclusive representative of all the
employees in an appropriate collective bargaining unit for
purposes of collective bargaining.
F: Union filed a petition for certification with the Med-Arbiter.
San Miguel opposed this, saying that there was a previous
application involving the same party, issues, and relief. Union
replied that the first application was denied for failure to meet
one of the requirements (the charter certificate), as at the time
it was filed, there were two contending sets of officers, and
that an application can be filed again as soon as that is met.
H: Second petition for certification is valid. Union acquires
personality upon issuance of the certificate of registration.
ACEDERA v. INTERNATIONAL CONTAINER
TERMINAL SERVICES (2003)
D: For a member of a class to be permitted to intervene in a
representative action, fraud or collusion or lack of good faith
on the part of the representative must be proven. It must be
UP LAW C2017 LABOR 2 (PROF. DAWAY) MIDTERMS REVIEWER | 22
based on facts borne on record.
F: Dispute between the union and ICTSI on what should be the
divisor for computing wages. The petitioners (employees)
wanted to intervene in the case because they are the ones
who will benefit or suffer from the decision. They were denied.
H: petitioners are well-represented by the union. The union
has the right to represent its members according to the LC.
e. Rights of Workers and Employers Organizations
MINETTE BAPTISTA v. ROSARIO VILLANUEVA ET AL. (2013)
D: Workers’ and employers’ organizations shall have the right
to draw up their constitutions and rules to elect their
representatives in full freedom, to organize their
administration and activities and to formulate their programs.
F: Union members filed impeachment complaint against the
union president. The members were expelled from the union
and terminated from their employment.
H: Company not guilty of ULP. Members violated the
provisions of the union’s constitution and by-laws when they
filed petitions for impeachment against their union officers
and for audit before the DOLE without first exhausting all
internal remedies available within their organization.
f. Effect of Non-Registration
• The legal personality of a labor union or workers’
association may only be questioned through an
independent petition for cancellation.
• It may not be questioned through a collateral attack
in a petition for certification election.
Book V, Rule IV, Sec. 8, supra p. 21
ABARIA v. NLRC (2011)
D: Not being a labor organization, NAMA is not entitled to
those rights granted to a legitimate labor organization under
Art. 241, which are: (a.) to act as representative of its
members for the purpose of CB, (b.) to be certified as the
exclusive representative of all the employees in an appropriate
CB unit for purposes of CB.
F: Intra-union dispute between NAMA-MCCH-NHL (Nava’s
group are members) and the federation NFL(exclusive
bargaining rep of MCCHI rank-and-file employees) because of
NFL’s decision to disaffiliate with KMU. Nava’s group
submitted CB proposals to the company, demanding it
negotiate with them directly. Because of this, the company
suspended collection of union fees. The union also suspended
the membership of Nava’s group. Nava’s group wore red
armbands to work, which were taken by MCCHI as a strike.
DOLE issued certifications that NAMA is not registered, thus
not a legitimate labor organization. Thus, their Notice to Strike
was deemed not filed. They staged a strike that led to the
termination of Nava and the other union members.
H: MCCHI is not guilty of unfair labor practices when it refused
to negotiate with Nava’s group. Only legitimate labor
organizations may enter into CB negotiations, file Notice to
Strike and avail of other rights under LC. The strike was illegal,
hence their dismissals were valid.

2. Cancellation of Union Certificate of Registration
Grounds for cancellation:
a) Misrepresentation, false statement or fraud (MFSF) in
adoption or ratification of the CBL or amendments
thereto, the minutes of ratification, and the list of
members who took part in the ratification;
b) MFSF - election of officers, minutes of the election of
officers, and the list of voters;
c) Voluntary dissolution by the members.
The certificate of registration may be cancelled by the Bureau
after due hearing, based only on the aforementioned grounds.
A petition for cancellation of a union registration does not
suspend the proceedings for certification election. It also does
not prevent the filing of a petition for certification election.
The registration of a legitimate labor organization may be
cancelled by the organization itself.
• At least 2/3 of its general membership must vote, in a
meeting duly called for that purpose
• An application to cancel must then be submitted by
the board of the organization
Failure to submit reportorial requirements shall not be a
ground for cancellation of union registration but shall subject
the erring officers or members to suspension, expulsion from
membership, or any appropriate penalty.
Failure of any labor organization to comply with the periodic
financial reports six (6) months after the effectivity of RA 6715
shall automatically result in the cancellation of union
registration of such labor organization.
LC, Art. 244. Cancellation of Registration – The certificate of
registration of any legitimate labor organization, whether
national or local, may be cancelled by the Bureau, after due
hearing, only on the grounds specified in Article 239 hereof.
LC Art. 244-A. Effect of a Petition for Cancellation of
Registration – A petition for cancellation of union registration
shall not suspend the proceedings for certification election nor
shall it prevent the filing of a petition for certification election.
In case of cancellation, nothing herein shall restrict the right of
the union to seek just and equitable remedies in the
appropriate courts
LC, Art. 245. Grounds for Cancellation of Union Registration –
The following may constitute grounds for cancellation of union
registration:
(a) Misrepresentation, false statement or fraud in connection
with the adoption or ratification of the constitution and
by-laws or amendments thereto, the minutes of
ratification, and the list of members who took part in the
ratification;
(b) Misrepresentation, false statements or fraud in
connection with the election of officers, minutes of the
election of officers, and the list of voters
(c) voluntary dissolution by the members
LC, Art. 245-A. Voluntary Cancellation of Registration – The
registration of a legitimate labor organization may be
cancelled by the organization itself. Provided, That at least
two-thirds of its general membership votes, in a meeting duly
called for that purpose to dissolve the organization: Provided,
UP LAW C2017 LABOR 2 (PROF. DAWAY) MIDTERMS REVIEWER | 23
further, That an application to cancel registration is thereafter
submitted by the board of the organization, attested to by the
president thereof.
LC, Art. 247 (j), last two paragraphs. Every income or revenue
of the organization shall be evidenced by a record showing its
source, and every expenditure of its funds shall be evidenced
by a receipt from the person to whom the payment is made,
which shall state the date, place and purpose of such
payment. Such record or receipt shall form part of the financial
records of the organization. Any action involving the funds of
the organization shall prescribe after three (3) years from the
date of submission of the annual financial report to the
Department of Labor and Employment or from the date the
same should have been submitted as required by law,
whichever comes earlier: Provided, That this provision shall
apply only to a legitimate labor organization which has
submitted the financial report requirements under this Code:
Provided, further, that failure of any labor organization to
comply with the periodic financial reports required by law and
such rules and regulations promulgated there under six (6)
months after the effectivity of this Act shall automatically
result in the cancellation of union registration of such labor
organization;
LC Art. 248-A. Reportorial Requirements – The following are
documents required to be submitted to the Bureau by the
legitimate labor organization concerned:
(a) Its constitution and by-laws, or amendments thereto, the
minutes of ratification, and the list of members who took
part in the ratification of the constitution and by-laws
within thirty (30) days from adoption or ratification of the
constitution and by-laws or amendments thereto;
(b) Its list of officers, minutes of the election of officers, and
list of voters within thirty (30) days from election;
(c) Its annual financial report within thirty (30) days after the
close of every fiscal year; and
(d) Its list of members at least once a year or whenever
required by the Bureau.
Failure to comply with the above requirements shall not be a
ground for cancellation of union registration but shall subject
the erring officers or members to suspension, expulsion from
membership, or any appropriate penalty.
LC Art. 251-A. Effect of Inclusion as Members of Employees
Outside the Bargaining Unit – The inclusion as union members
of employees outside the bargaining unit shall not be a ground
for the cancellation of the registration of the union. Said
employees are automatically deemed removed from the list of
membership of said union.
Book V, Rule I, Sec. 1(g), "Cancellation Proceedings" refer to
the legal process leading to the revocation of the legitimate
status of a union or workers' association.
Omnibus Rules, Book V, Rule XIV – Cancellation of
Registration of Labor Organizations
NOTE: This rule should be reconciled with the amendments
introduced by RA 9841, which limits the grounds for
cancellation to the 3 mentioned above (p. 23).
Section 1. Where to file. - Subject to the requirements of
notice and due process, the registration of any legitimate
independent labor union, chartered local and workers'
association may be cancelled by the Regional Director, or in

the case of federations, national or industry unions and trade
union centers, by the Bureau Director, upon the filing of an
independent complaint or petition for cancellation.
Section 2. Who may file. - Any party-in-interest may
commence a petition for cancellation of registration, except in
actions involving violations of Article 241, which can only be
commenced by members of the labor organization concerned.
Section 3. Grounds for cancellation. - The following shall
constitute grounds for cancellation of registration of labor
organizations:
(a) misrepresentation, false statement or fraud in connection
with the adoption or ratification of the constitution and
by-laws or amendments thereto, the minutes of
ratification, the list of members who took part in the
ratification of the constitution and by-laws or
amendments thereto, the minutes of ratification, the list of
members who took part in the ratification;
(b) failure to submit the documents mentioned in the
preceding paragraph within thirty (30) days from adoption
or ratification of the constitution and by-laws or
amendments thereto;
(c) misrepresentation, false statements or fraud in
connection with the election of officers, minutes of the
election of officers, the list of voters, failure to submit
these documents together with the list of the newly
elected or appointed officers and their postal address
within thirty (30) days from election;
(d) failure to submit the annual financial report to the Bureau
within thirty (30) days after the close of every fiscal year
and misrepresentation, false entries or fraud in the
preparation of the financial report;
(e) acting as a labor contractor or engaging in the "cabo"
system, or otherwise engaging in any activity prohibited
by law;
(f) entering into collective bargaining agreements which
provide for terms and conditions of employment below
minimum standards established by law;
(g) commission of any of the acts enumerated under Article
241 of the Labor Code; provided that no petition for
cancellation based on this ground may be granted unless
supported by at least thirty (30%) percent of all the
members of the respondent labor organization;
(h) asking for or accepting attorney's fees or negotiation fees
from the employer;
(i) other than for mandatory activities under the Labor Code,
checking off special assessments or any other fees
without duly signed individual written authorizations of
the members;
(j) failure to submit list of individual members to the Bureau
once a year or whenever required by the Bureau;
(k) failure to comply with the requirements of registration
prescribed under Rules III and IV.
Section 4. Action on the petition. - The petition shall be
resolved by the Regional Director in accordance with Rule XI,
unless the petition is based on paragraphs (d) and (j) of the
foregoing section or non-compliance with the labor
organization's reportorial obligations, in which case the
petition shall be acted upon pursuant to the following Rule.
HERITAGE HOTEL MANILA v. PIGLAS-HERITAGE (2009)
D: Charge of fraud and misrepresentation by a labor union
must be clearly established by evidence and surrounding
circumstances.
UP LAW C2017 LABOR 2 (PROF. DAWAY) MIDTERMS REVIEWER | 24
F: PIGLAS filed for certification election, which was opposed
by Heritage Hotel on the grounds that the documents
submitted bore false information and that the union was
merely an alter ego of the old union, enjoined from holding a
certification election.
H: Petition for cancellation denied. The discrepancies in
PIGLAS’s documents (roll call growing from 90 to 128,
difference between signatures in attendance sheet and
number of those approving constitution and by-laws) could be
clearly explained.
HERITAGE HOTEL v. NUWHRAIN (2011)
D: The protection of the constitutional rights of workers to
self-organization and collective bargaining must be protected,
and that cancellation of said certificate must only be as a last
resort.
F: NUWHRAIN’s petition for certification election to become
the exclusive bargaining agent for the Heritage Hotel Manila’s
supervisory employees was granted. While the pre-election
conference was pending, Heritage filed a petition to have its
union certificate of registration cancelled because NUWHRAIN
failed to submit annual financial reports and lists of its
members to the Bureau of Labor Relations.
H: Denied Heritage’s petition. NUWHRAIN substantially
complied when it later submitted said reports.
a. Grounds
Labor Code, Art. 245, supra p. 23
• Allegation of fraud, false statements or misrepresentation
must be serious because if cancelled, labor organization
would lose all their rights.
• Registration is the act that converts a labor organization
to a legitimate labor organization while cancellation is the
government’s act that divests the organization of that
status.
4 REQUISITES to be met if cancellation through VOLUNTARY
DISSOLUTION
1) Members’ desire to dissolve should have been voted
through secret balloting
2) Balloting should take place in a meeting duly called for the
purpose of deciding whether or not to dissolve the union
3) Vote to dissolve should represent two-thirds affirmative
vote of the general membership.
4) Application for cancellation passed and submitted by the
union’s governing board.
TAKATA CORP (PHIL) v. BLR & SALAMAT (2014)
D: The 20% minimum requirement pertains to the employees’
membership in the union and not to the list of workers who
participated in the organizational meeting. Article 240 (b) and
(c) provide for separate requirements, which must be
submitted for the union's registration. For fraud and
misrepresentation to be grounds for cancellation of union
registration under Article 245 of the Labor Code, the nature of
the fraud and misrepresentation must be grave and
compelling enough to vitiate the consent of a majority of
union members.
F: Takata Corp. filed with DOLE to cancel the certificate of

union registration of SALAMAT (Union) due to their
misrepresentation, false statements, and fraud. Takata claims
that only 68 of the 119
members attended the organizational meeting; less than 20%
of 369 employees.
H: 20% requirement does not apply to Art 234 (b) or to those
who joined the org. meeting. 20% only applies to 234 (c) or all
employees in the bargaining unit. The “Pangalan ng mga
Kasapi ng Unyon” showed 119 names; more than 20% of 396.
No proof that members did not understand what they were
signing. The two repeated names is not a valid ground for
cancellation because they do not constitute grave
misrepresentation.
E. International Activities of Union –
Prohibition and Regulation
Art. 275. Prohibition against aliens; exceptions, supra p. 11
Art. 276. Regulation of foreign assistance, supra p. 11
Art. 277. Applicability to farm tenants and rural workers. The
provisions of this Title pertaining to foreign organizations and
activities shall be deemed applicable likewise to all
organizations of farm tenants, rural workers, and the like:
Provided, That in appropriate cases, the Secretary of Agrarian
Reform shall exercise the powers and responsibilities vested
by this Title in the Secretary of Labor.
F. Union – Member Relations
LC, Art. 247. Rights and conditions of membership in a labor
organization. – The following are the rights and conditions of
membership in a labor organization:
a.) No arbitrary or excessive initiation fees shall be required of
the members of a legitimate labor organization nor shall
arbitrary, excessive or oppressive fine and forfeiture be
imposed;
b.) The members shall be entitled to full and detailed reports
from their officers and representatives of all financial
transactions as provided for in the constitution and by-laws of
the organization;
c.) The members shall directly elect their officers, including
those of the national union or federation, to which they or their
union is affiliated, by secret ballot at intervals of five (5) years.
No qualification requirements for candidacy to any position
shall be imposed other than membership in good standing in
subject labor organization. The secretary or any other
responsible union officer shall furnish the Secretary of Labor
and Employment with a list of the newly-elected officers,
together with the appointive officers or agents who are
entrusted with the handling of funds, within thirty (30)
calendar days after the election of officers or from the
occurrence of any change in the list of officers of the labor
organization;
d.) The members shall determine by secret ballot, after due
deliberation, any question of major policy affecting the entire
membership of the organization, unless the nature of the
organization or force majeure renders such secret ballot
impractical, in which case, the board of directors of the
organization may make the decision in behalf of the general
UP LAW C2017 LABOR 2 (PROF. DAWAY) MIDTERMS REVIEWER | 25
membership;
e.) No labor organization shall knowingly admit as members
or continue in membership any individual who belongs to a
subversive organization or who is engaged directly or
indirectly in any subversive activity;
f.) No person who has been convicted of a crime involving
moral turpitude shall be eligible for election as a union officer
or for appointment to any position in the union;
g.) No officer, agent or member of a labor organization shall
collect any fees, dues, or other contributions in its behalf or
make any disbursement of its money or funds unless he is
duly authorized pursuant to its constitution and by-laws;
h.) Every payment of fees, dues or other contributions by a
member shall be evidenced by a receipt signed by the officer
or agent making the collection and entered into the record of
the organization to be kept and maintained for the purpose;
i.) The funds of the organization shall not be applied for any
purpose or object other than those expressly provided by its
constitution and by-laws or those expressly authorized by
written resolution adopted by the majority of the members at a
general meeting duly called for the purpose;
j.) Every income or revenue of the organization shall be
evidenced by a record showing its source, and every
expenditure of its funds shall be evidenced by a receipt from
the person to whom the payment is made, which shall state
the date, place and purpose of such payment. Such record or
receipt shall form part of the financial records of the
organization.
Any action involving the funds of the organization shall
prescribe after three (3) years from the date of submission of
the annual financial report to the Department of Labor and
Employment or from the date the same should have been
submitted as required by law, whichever comes earlier:
Provided, That this provision shall apply only to a legitimate
labor organization which has submitted the financial report
requirements under this Code: Provided, further, that failure of
any labor organization to comply with the periodic financial
reports required by law and such rules and regulations
promulgated thereunder six (6) months after the effectivity of
this Act shall automatically result in the cancellation of union
registration of such labor organization;
k.) The officers of any labor organization shall not be paid any
compensation other than the salaries and expenses due to
their positions as specifically provided for in its constitution
and by-laws, or in a written resolution duly authorized by a
majority of all the members at a general membership meeting
duly called for the purpose. The minutes of the meeting and
the list of participants and ballots cast shall be subject to
inspection by the Secretary of Labor or his duly authorized
representatives. Any irregularities in the approval of the
resolutions shall be a ground for impeachment or expulsion
from the organization;
l.) The treasurer of any labor organization and every officer
thereof who is responsible for the account of such
organization or for the collection, management, disbursement,
custody or control of the funds, moneys and other properties
of the organization, shall render to the organization and to its

members a true and correct account of all moneys received
and paid by him since he assumed office or since the last day
on which he rendered such account, and of all bonds,
securities and other properties of the organization entrusted
to his custody or under his control. The rendering of such
account shall be made:
1) At least once a year within thirty (30) days after the close
of its fiscal year;
2) At such other times as may be required by a resolution of
the majority of the members of the organization; and
3) Upon vacating his office.
The account shall be duly audited and verified by affidavit and
a copy thereof shall be furnished the Secretary of Labor.
m.) The books of accounts and other records of the financial
activities of any labor organization shall be open to inspection
by any officer or member thereof during office hours;
n.) No special assessment or other extraordinary fees may be
levied upon the members of a labor organization unless
authorized by a written resolution of a majority of all the
members in a general membership meeting duly called for the
purpose. The secretary of the organization shall record the
minutes of the meeting including the list of all members
present, the votes cast, the purpose of the special assessment
or fees and the recipient of such assessment or fees. The
record shall be attested to by the president.
o.) Other than for mandatory activities under the Code, no
special assessments, attorney’s fees, negotiation fees or any
other extraordinary fees may be checked off from any amount
due to an employee without an individual written authorization
duly signed by the employee. The authorization should
specifically state the amount, purpose and beneficiary of the
deduction; and
p.) It shall be the duty of any labor organization and its
officers to inform its members on the provisions of its
constitution and by-laws, collective bargaining agreement, the
prevailing labor relations system and all their rights and
obligations under existing labor laws.
For this purpose, registered labor organizations may assess
reasonable dues to finance labor relations seminars and other
labor education activities.
Any violation of the above rights and conditions of
membership shall be a ground for cancellation of union
registration or expulsion of officers from office, whichever is
appropriate. At least thirty percent (30%) of the members of a
union or any member or members specially concerned may
report such violation to the Bureau. The Bureau shall have the
power to hear and decide any reported violation to mete the
appropriate penalty.
Criminal and civil liabilities arising from violations of above
rights and conditions of membership shall continue to be
under the jurisdiction of ordinary courts.
LC, Art. 255. Unfair labor practices of labor organizations. – It
shall be unfair labor practice for a labor organization, its
officers, agents or representatives:
(a) To restrain or coerce employees in the exercise of their
right to self-organization. However, a labor organization
shall have the right to prescribe its own rules with respect
UP LAW C2017 LABOR 2 (PROF. DAWAY) MIDTERMS REVIEWER | 26
to the acquisition or retention of membership.
UST FACULTY UNION v. BITONIO (1999)
D: The Union’s CBL is the fundamental law that governs the
relationship between and among the members of the union. It
is where the rights, duties and obligations, powers, functions
and authority of the officers as well as the members are
defined. It is the organic law that determines the validity of
acts done by any officer or member of the union. Without
respect for the CBL, a union as a democratic institution
degenerates into nothing more than a group of individuals
governed by mob rule.
F: A union election of USTFU officers was held during a
general assembly convened and participated in by non-USTFU
members (faculty members and even members of UST
management).
H: Election is void for having been conducted in violation of
the union’s Constitution and Bylaws (CBL), which is the
covenant the governs the relations between and among
members of the union. The collective bargaining unit of all
faculty members in that general assembly had no right to
suspend the provision of USTFU’s CBL.
UST v. SAMAHANG MANGGAGAWA NG UST (2009)
D: As individual components of a union possessed of a
distinct and separate corporate personality, union members
should realize that in joining the organization, they have
surrendered a portion of their individual freedom for the
benefit of all the other members; they submit to the will of the
majority of the members in order that they may derive the
advantages to be gained from concerted action all. Will of the
members is personified by its board of directors or trustees,
and its decisions accordingly bind them
F: Conflict between UST and union UST (SM-UST) ensued
regarding economic provisions in the CBA, so the Secretary of
DOLE issued an order containing a “reasonable resolution”
which is not in accordance with union’s demands. There is an
issue of whether or not individual acceptance of 572 out of the
619 union members of the monetary award could be
considered ratification of the DOLE Secretary’s order.
H: The acceptance did not operate as a ratification nor a
waiver of their right to receive further benefits, or what they
may be entitled to The members were merely constrained to
accept payment at the time. Christmas was then just around
the corner.
1. Admission and Discipline of Members
LC, Art 255(a), supra
LC, Art 247 (a), (e) supra p. 25
LC, Art 283. Miscellaneous provisions.
(a) All unions are authorized to collect reasonable
membership fees, union dues, assessments and fines and
other contributions for labor education and research,
mutual death and hospitalization benefits, welfare fund,
strike fund and credit and cooperative undertakings.
(c) Any employee, whether employed for a definite period or
not, shall, beginning on his first day of service, be
considered as an employee for purposes of membership
in any labor union.

VILLAR v. INCIONG (1983)
D: A closed-shop is a valid form of union security, and a
provision therefor in a collective bargaining agreement is not a
restriction of the right of freedom of association guaranteed
by the Constitution. Where in a closed-shop agreement it is
stipulated that union members who cease to be in good
standing shall immediately be dismissed, such dismissal does
not constitute an unfair labor practice
F: Petitioners disaffiliated themselves from the existing
bargaining agent in Amigo; they were then found guilty of acts
prejudicial and inimical to the interests of the Amigo
Employees Union- PAFLU. Pursuant to a security clause the
union demanded the petitioners’ termination from the
company, which the company granted.
H: The Court upheld the legality of their termination.
SALUNGA v. CIR (1967)
D: Generally, a state may not compel ordinary voluntary
associations to admit any given individual, because
membership may be accorded or withheld as a matter if
privilege, BUT the rule is qualified in respect of labor unions or
as regards a particular employer with which it has a closed-
shop agreement. The closed shop and the union shop cause
the admission requirements of trade unions to become
affected with the public interest. Unions are not entitled to
arbitrarily exclude qualified applicants for membership, and a
closed-shop provision would not justify the employer in
discharging, or a union in insisting upon the discharge of, an
employee whom the union thus refuses to admit to
membership, without any reasonable ground
F: Salunga wanted to resign from PAFLU, but after learning
that resignation from PAFLU would equate to removal from
employment (pursuant to the CBA); he wanted to withdraw
such resignation. PAFLU refused and he was terminated by
the company as insisted by theu union. Salunga filed an unfair
labor practices case in the CIR.
H: Salunga’s termination is unfair labor practice. Salunga is
entitled to reinstatement.
Due Process
BUGAY v. KAPISANAN NG MGA MANGGAGAWA SA MRR
(1962)
D: Not being given an opportunity to defend oneself and an
expulsion which was not submitted to the different chapters
of the union as required by its constitution and by-laws which
subjected a person to humiliation and mental anguish with the
consequent loss of good name and reputation is a sufficient
cause of action for relief of damages.
F: Bugay was charged with disloyalty and conduct
unbecoming of a union member and was later expelled from
the union. Bugay then filed against the Kapisanan before CIR
an action for moral damages arising out of ULP allegedly
committed by the union. CIR found the union guilty as charged
due to the irregularity of the proceedings conducted. Bugay
files an action to recover moral damages against the union
before CFI Manila. CFI dismissed the action due to insufficient
cause of action.
H: SC reversed the ruling and remanded the case for further
proceedings.
UP LAW C2017 LABOR 2 (PROF. DAWAY) MIDTERMS REVIEWER | 27
2. Election of Officers
Art. 247 (c) (f) (k), supra p. 25
Omnibus Rules Book V, Rule XII
ELECTION OF OFFICERS OF LABOR UNIONS AND WORKERS
ASSOCIATIONS
Section 1. Conduct of Election of Union Officers; Procedure in
the Absence of Provisions in the Constitution and By-Laws
In the absence of any agreement among the members or any
provision in the constitution and by-laws of a labor union or
workers’ association, the following guidelines may be adopted
in the election of officers:
(a) Within sixty (60) days before the expiration of the term of
the incumbent officers, the president of the labor
organization shall constitute a committee on election to
be composed of at least three (3) members who are not
running for any position in the election, provided that if
there are identifiable parties within the labor organization,
each party shall have equal representation in the
committee;
(b) Upon constitution, the members shall elect the chairman
of the committee from among themselves, and in case of
disagreement, the president shall designate the chairman;
(c) Within ten (10) days from its constitution, the committee
shall, among others, exercise the following powers and
duties:
1. Set the date, time and venue of the election;
2. Prescribe the rules on the qualification and eligibility
of candidates and voters;
3. Prepare and post the voters’ list and the list of
qualified candidates;
4. Accredit the authorized representatives of the
contending parties;
5. Supervise the actual conduct of the election and
canvass the votes to ensure the sanctity of the ballot;
6. Keep minutes of the proceedings;
7. Be the final arbiter of all election protests;
8. Proclaim the winners; and
9. Prescribe such other rules as may facilitate the
orderly conduct of election
Section 2. Dispute Over Conduct of Election of Officers –
Where the terms of the officers of a labor organization have
expired and its officers failed or neglected to do so call for an
election of new officers, or where the labor organization’s
constitution and by-laws do not provide for the manner by
which the said election can be called or conducted and the
intervention of the Department is necessary, at least thirty
(30%) of the members of the labor organization may file a
petition for the conduct of election of their officers within the
Regional Office that issued its certificate of registration or
certificate of creation of chartered local.
In the case of federations, national or industry unions and
trade union centers, the petition shall be filed with the Bureau
or the Regional Office but shall be heard and resolved by the
Bureau.
This rule shall also apply where a conduct of election of
officers is an alternative relief or necessary consequence of a
petition for nullification of election of officers,
impeachment/expulsion of officers, or such other petitions.
Section 3. Formal Requirement and Proceedings – The formal
requirements, processes and periods of disposition of this

petition stated in Rule XI shall be followed in the
determination of the merits of the petition and appeal.
Section 4. Pre-election Conference and Conduct of Election –
The appointment of an election officer and the procedures and
periods in the conduct of the pre-election conference and
election proceedings prescribed in Rule IX shall also apply in
the conduct of a pre-election conference and election of
officers in any labor organization.
Section 5. Applicability of the Provisions of the Labor
Organization’s Constitution and By-Laws – Where the
conduct of election of officers is ordered by the Med-Arbiter,
the Bureau or Office of the Secretary, the rules and regulations
governing the filing of candidacies and conduct of election
under the constitution and by-laws of the labor organization
may be applied in the implementation of the decision, or new
and additional rules may be adopted as agreed upon by the
parties.
The entire proceedings shall be presided by the Election
Officer from the Labor Relations Division of the Regional
Office or the Bureau. He/She shall act as the COMELEC
referred to in the labor organization’s constitution and by-
laws and obligate himself/herself to comply with his/her
mandate under the decision to be implemented and the
constitution and by-laws.
a. Qualifications/ Disqualification
Art 247 (c), (f) supra p. 25
- No qualification requirements for candidacy to any
position other than membership in good standing in
the labor organization
- Must not have been convicted of a crime involving
moral turpitude
MONTANO v. VERCELES (2010)
D: Under Book V, Rule XV, Sec 2 of the Labor Code Omnibus
Rules, the COMELEC (of the union) shall have the power to
prescribe rules on the qualification and eligibility of
candidates and such other rules as may facilitate the orderly
conduct of elections. FFW COMELEC has sufficient authority
to adopt its own interpretation of the explicit provisions of the
federation's constitution and by-laws. This, unless it is shown
to have committed grave abuse of discretion, its decision and
ruling will not be interfered with.
F: Atty. Montaño, union president and federation employee,
was elected as FFW National Vice President. His candidacy
was assailed for violation of the CBL which prohibits
federation employees from sitting in its Governing Board. The
FFW Constitution is clear that no member of the Governing
Board shall at the same time perform functions of the rank-
and-file staff.
H: Montano is disqualified to run for the position of National
Vice-President in view of such proscription. His election as
FFW Vice-President is null and void.
b. Manner of Election
Art. 247 (c), supra p. 25
The union officers are elected directly by the members in
secret ballot voting,
c. Tenure
UP LAW C2017 LABOR 2 (PROF. DAWAY) MIDTERMS REVIEWER | 28
Art. 247 (c), supra p. 25
d. Compensation
Art. 247. (k) supra p. 25
e. Who may vote
Art. 247 (c) supra p. 25
Only members of the union can take part in the election of
union officers.
MANALAD v. TRAJANO (1989)
D: The mere fact that a group obtained the second highest
number of votes does not mean that they will thereby be
considered as the elected officers if the true winners are
disqualified.
F: Petitioners sought the disqualification of their rival group
from the union's elections; and that they also be cited in
contempt for disregarding an earlier SC resolution.
H: SC dismissed the case for being moot and academic (the
rival group's term had already expired).
TANCINCO v. CALLEJA (1988)
D: Submission of the employees’ names with the BLR as
qualified union members is not an indispensable condition to
enable them to vote in the election, and that eligibility to vote
may be determined through the use of the applicable payroll
period and employee's status during the applicable payroll
period.
F: ANGLO excluded 56 employees from the list of voters which
Tancinco et al protested. Director Calleja excluded 51 from
those 56 from the list, but for the reason that their names
didn’t appear in the union records submitted to the Bureau of
Labor.
H: The SC held that the 56 should be allowed to vote
KAPISANAN v. TRAJANO (1985)
D: If herein union officers were guilty of the alleged acts
imputed against them, said public respondent pursuant to
Article 242 of the New Labor Code and in the light of Our ruling
in Duyag vs. Inciong, should have meted out the appropriate
penalty on them, i.e., to expel them from the Union, as prayed
for, and not call for a referendum to decide the issue.
F: Some KMP members wanted to have their union officers
expelled after an investigation by union examiner found
anomalies showing non-compliance with union rules. Med-
arbiter ordered that a referendum be made so that the union
itself may vote if the officers should be suspended or expelled.
H: The Court held that the order was invalid MA should have
meted out the appropriate penalty on them such as expulsion
and not call for a referendum to decide the issue. But issue
rendered moot and academic because of the re-election of the
officers.
F. Shop Steward
MIRANDA JR. v. ASIAN TERMINALS, INC (2009)
D: Nature of being a Shop Steward: Union position, not a
company position. Therefore, the case at bar is an intra-
corporate dispute to be resolved under the Med-Arbiter and

the CBA.
F: Teodorico S. Miranda, Jr. was employed by ATI as a
Checker and assigned as the Shop Steward by union. He was
recalled from said position due to lack of trust and confidence
(absenteeism). He filed a case where the Med-Arbiter ruled in
favor of him and ordered his reinstatement. Company
questioned this, claiming that this is an intra-corporate
dispute.
H: The correct decision of the Med-Arbiter for Miranda to be
reinstated can’t be enforced since
he was already retrenched and he signed quitclaims and
waivers.
STA. ROSA COCA-COLA PLANT EMPLOYEES UNION v. CCBP
(2007)
D: Shop steward is appointed by the Union and serves as
representative of the Union, charged with negotiating and
adjustment of grievances of employees with the supervisor of
the employer. He is the representative of the Union members
in a building or other workplace. His duties include the
conduct of initial negotiations for settlement of grievances. He
is to help other members when they have concerns with the
employer or other work-related issues. He is the first person
that workers turn to for assistance or information. If someone
has a problem at work, the steward will help them sort it out
or, if necessary, help them file a complaint. In the performance
of his duties, he has to take cognizance of and resolve, in the
first instance, the grievances of the members of the Union.
F: Union staged an illegal strike. Petitioners who were shop
stewards participated and was subsequently terminated. They
assail such termination alleging that they are mere members
and not officers.
H: The petitioners are shop stewards, and validly dismissed.
“Instead of playing the role of ‘peacemakers’ and grievance
solvers, they stewards participated in the strike. Thus, like the
officers and directors of petitioner Union who joined the strike,
petitioners-shop stewards also deserve the penalty of
dismissal from their employment.”
3. Major Policy Matter
Art. 247 (d), supra p. 25
In Art 247, general membership action is required in the
following: 247 (d) (i) (k) (n) and voluntary dissolution
Issues requiring a majority of members:
1. Major policy matter
2. Use of organization funds
3. Compensation of union officers
4. Voluntary dissolution decided by 2/3 of general membership
5. Special assessment or extraordinary fees
HALILI v. CIR (1985)
D: Union members shall determine by secret ballot, after due
deliberation, any question of major policy affecting the entire
membership of the organization. If secret ballot cannot be
done,the board of directors of the organization may make the
decision in behalf of the general membership.
F: Atty. Pineda sold a parcel of land belonging to the Union he
‘represents’. Atty. Pineda also
sought the distribution of the proceeds of the sale to the
Union members as well as tried to
UP LAW C2017 LABOR 2 (PROF. DAWAY) MIDTERMS REVIEWER | 29
enforce his Attorney’s lien from the said transaction. All the
aforementioned acts are by virtue of the retainer’s contract he
had with the union.
H: The Court held that the contract was anomalous as it was
not a contract with the general membership for being violative
of Art. 247 (d) of the Labor Code. The contract was executed
only between Atty. Pineda and the officers of the Union
chosen by about 125 members only. It was not a contract with
the general membership. Only 14% of the total membership of
897 was represented.
ABARIA v. NLRC (2011) supra p. 22
D: NAMA is not the labor organization certified or designated
by the majority of the rank-and-file hospital employees to
represent them in the CBA negotiations. While it is true that a
local union has the right to disaffiliate from the national
federation, NAMA has not done so as there was no any effort
on its part to comply with the legal requisites for a valid
disaffiliation during the “freedom period” or the last 60 days of
the last year of the CBA, through a majority vote in a secret
balloting in accordance with Art. 241 (d).
4. Union Funds
LC, Art. 247 (a) (b) (c) (g) (h) (i) (j) (k) (l) (m) (n) (o), supra pp.
25-26
LC, Art. 280 Visitorial power. The Secretary of Labor and
Employment or his duly authorized representative is hereby
empowered to inquire into the financial activities of legitimate
labor organizations upon the filing of a complaint under oath
and duly supported by the written consent of at least twenty
percent (20%) of the total membership of the labor
organization concerned and to examine their books of
accounts and other records to determine compliance or non-
compliance with the law and to prosecute any violations of the
law and the union constitution and by-laws: Provided, That
such inquiry or examination shall not be conducted during the
sixty (60)-day freedom period nor within the thirty (30) days
immediately preceding the date of election of union officials.
Book V, Rule XIII
RULE XIII ADMINISTRATION OF TRADE UNION FUNDS AND
ACTIONS ARISING THEREFROM
Section 1. Right of union to collect dues and agency fees. -
The incumbent bargaining agent shall continue to be entitled
to check-off and collect dues and agency fees despite the
pendency of a representation case, other inter/intra-union
disputes or related labor relations disputes.
Section 2. Visitorial power under Article 274. - The Regional or
Bureau Director may inquire into the financial activities of any
legitimate labor organization and examine their books of
accounts and other records to determine compliance with the
law and the organization's constitution and by-laws. Such
examination shall be made upon the filing of a request or
complaint for the conduct of an accounts examination by any
member of the labor organization, supported by the written
consent of at least twenty (20%) percent of its total
membership.
Section 3. Where to file. - A request for examination of books
of accounts of independent labor unions, chartered locals and
workers associations pursuant to Article 274 shall be filed

with the Regional Office that issued its certificate of
registration or certificate of creation of chartered local.
A request for examination of books of accounts of federations
or national unions and trade union centers pursuant to Article
274 shall be filed with the Bureau. Such request or complaint,
in the absence of allegations pertaining to a violation of Article
241, shall not be treated as an intra-union dispute and the
appointment of an Audit Examiner by the Regional or Bureau
Director shall not be appealable.
Section 4. Actions arising from Article 241. - Any complaint or
petition with allegations of mishandling, misappropriation or
non-accounting of funds in violation of Article 241 shall be
treated as an intra-union dispute. It shall be heard and
resolved by the Med-Arbiter pursuant to the provisions of Rule
XI.
Section 5. Prescription. - The complaint or petition for audit or
examination of funds and book of accounts shall prescribe
within three (3) years from the date of submission of the
annual financial report to the Department or from the date the
same should have been submitted as required by law,
whichever comes earlier.
Section 6. Decision. - A decision granting the conduct of audit
shall include the appointment of the Audit Examiner and a
directive upon him/her to submit his/her report and
recommendations within ten (10) days from termination of
audit. The decision granting the conduct of audit is
interlocutory and shall not be appealable. The decision
denying or dismissing the complaint or petition for audit may
be appealed within ten (10) days from receipt thereof pursuant
to the provisions prescribed in Rule XI.
Section 7. Pre-audit conference. - Within twenty-four (24)
hours from receipt of the decision granting the conduct of
audit, the Regional Director shall summon the parties to a pre-
audit conference conducted by the Audit Examiner to
determine and obtain the following: (a) sources of funds
covered by the audit; (b) the banks and financial institutions
where the labor organization maintains its account; (c) union
books of accounts and financial statements; (d) disbursement
vouchers with supporting receipts, invoices and other
documents; (e) income and revenue receipts; (f) cash books;
(g) minutes of general membership meeting and board
meetings; (h) other relevant matters and documents. The first
pre-audit conference shall be scheduled within ten (10) days
from receipt by the Audit Examiner of the decision granting
the conduct of an audit.
Section 8. Issuance of subpoena. - The Regional Director may
compel any party to appear or bring the required financial
documents in a conference or hearing through the issuance of
a subpoena ad testificandum or subpoena duces tecum.
He/She may also require the employer concerned to issue
certifications of union dues and other assessments remitted
to the union during the period of audit.
Section 9. Conduct of audit examination. - Where book of
accounts are submitted by the parties, the Audit Examiner
shall:
(a) examine the transactions reflected in the disbursement
vouchers;
(b) determine the validity of the supporting documents
attached to the vouchers consistent with the union's
UP LAW C2017 LABOR 2 (PROF. DAWAY) MIDTERMS REVIEWER | 30
constitution and by-laws, relevant resolutions of the
union and the Labor Code;
(c) trace recording and posting in the disbursement book;
(d) record observations or findings of all financial
transactions.
Where no book of accounts are maintained by the officers of
the labor organization, the Audit Examiner shall:
(a) examine the transactions reflected in the disbursement
vouchers;
(b) determine the validity of the supporting documents
attached to the vouchers consistent with the labor
organization's constitution and by-laws, relevant board
resolutions, and the Labor Code;
(c) prepare working papers or worksheet/s;
(d) record and post all financial transactions reflected in the
cash vouchers in the working papers or worksheet/s; and
(e) record observations or findings of all financial
transactions.
The Audit Examiner shall conduct an inventory of all physical
assets acquired by the labor organization, if any, and on the
basis of his/her findings prepare his/her audited financial
report or statement reflecting the true and correct financial
accounts and balances of the labor organization with relevant
annexes attached.
Section 10. Period of audit. - The Audit Examiner shall have
sixty (60) days from the date of first pre- audit conference
within which to complete the conduct of audit, unless the
volume of financial records, the period covered by the audit
and other circumstances warrant the extension thereof. In
such a case, the Audit Examiner shall notify the Med-Arbiter or
the Bureau Director, as the case may be, of such fact at least
ten (10) days before the expiration of the sixty (60) day period.
Section 11. Audit Report. - The Audit Examiner shall make a
report of his/her findings to the parties involved and the same
shall include the following:
(a) name of the labor organization;
(b) name of complainant(s) or petitioner(s) and
respondent(s);
(c) name of officers of the labor organization during the
period covered by the audit report;
(d) scope of the audit;
(e) list of documents examined;
(f) audit methods and procedures adopted; and
(g) findings and recommendations.
Section 12. Completion of audit. - A copy of the audit report
shall be forwarded by the Audit Examiner to the Med-Arbiter or
the Bureau Director, as the case may be, within ten (10) days
from termination of the audit, together with the entire records
of the case and all documents relative to the conduct of the
audit.
Section 13. Decision after audit. - The Med-Arbiter or the
Bureau Director shall render a decision within twenty (20)
days from receipt of the audit report. All issues raised by the
parties during the conduct of the audit shall be resolved by the
Med-Arbiter. The decision shall be released in the same
manner prescribed in Section 15, Rule XI.
When warranted, the Med-Arbiter or Bureau Director shall
order the restitution of union funds by the responsible
officer(s) in the same decision.
Section 14. Appeal. - Appeal from the decision of the Med-
Arbiter denying the conduct of audit and from the results of

the audit may be filed by any of the parties with the Bureau.
Decisions rendered by the Bureau after the conduct of audit in
the exercise of its original jurisdiction may be appealed to the
Office of the Secretary. Both shall be resolved in accordance
with the provisions of Section 16, Rule XI.
Section 15. Period of inquiry or examination. - No complaint
for inquiry or examination of the financial and book of
accounts as well as other records of any legitimate labor
organization shall be entertained during the sixty (60) day
freedom period or within thirty (30) days immediately
preceding the date of election of union officers. Any complaint
or petition so filed shall be dismissed.
• Dues – payments to meet the union’s general and current
obligations.
• Assessment – payments used for a special purpose,
especially if required only for a limited time
Payment of Attorney’s Fees
LC, Art 228. Appearances and Fees.
(a) Non-lawyers may appear before the Commission or any
Labor Arbiter only:
1. If they represent themselves; or
2. If they represent their organization or members thereof.
(b) No attorney’s fees, negotiation fees or similar charges of
any kind arising from any collective bargaining agreement
shall be imposed on any individual member of the
contracting union: Provided, However, that attorney’s fees
may be charged against union funds in an amount to be
agreed upon by the parties. Any contract, agreement or
arrangement of any sort to the contrary shall be null and
void.
LC, Art 111. Attorney’s fees.
a. In cases of unlawful withholding of wages, the culpable
party may be assessed attorney’s fees equivalent to ten
percent of the amount of wages recovered.
b. It shall be unlawful for any person to demand or accept, in
any judicial or administrative proceedings for the recovery of
wages, attorney’s fees which exceed ten percent of the
amount of wages recovered.
LC, Art 247 (g) (h) (m) (n) (o) supra pp. 25-26
2 commonly accepted concepts of attorney’s fees:
a. Ordinary concept – the reasonable compensation paid to a
lawyer by his client for the legal services the former renders;
compensation is paid for the cost and/or results of legal
services per agreement or as may be assessed.
b. Extraordinary concept – the indemnity for damages ordered
by the court to be paid by the
losing party to the winning party.
• The instances when these (extraordinary concept) may be
awarded are enumerated in Art. 2208, CC, specifically in its
par. 7 on actions for recovery of wages, and is payable not to
the lawyer but to the client, unless the client and his lawyer
have agreed that the award shall accrue to the lawyer as
additional or part of compensation.
PACIFIC BANKING CORPORATION v. CLAVE (1984)
D: Art 222 is intended to protect the employee against
unwarranted practices that would diminish his compensation
without his knowledge and consent. Payment of attorney’s
fees should be deducted from the union funds not from
employees’ compensation
UP LAW C2017 LABOR 2 (PROF. DAWAY) MIDTERMS REVIEWER | 31
F: PBC and PABECO had a CBA deadlock. Ministry of Labor
intervened and decided the terms. Attorney filed MOR. For
inaction of the Ministry, Attorney filed memorandum in Office
of the President. Executive Secretary awarded benefits of CBA
to employees and authorized the deduction of attorney’s fees
from the benefits awarded with the CBA
H: SC stated that attorney’s fees cannot be deducted from
employee’s benefits but only to union funds as stated in
Article 228 of the Labor Code.
KAISAHAN AT KAPATIRAN v. MANILA WATER CO. (2011)
D: Art. 111, LC contemplates the extraordinary concept of
attorney’s fees and that it is an exception to the declared
policy of strict construction in the award of attorney’s fees.
F: The issue in this case is the effect of the MOA provision that
attorney’s fees shall be deducted from the AA and CBA
receivables. The more significant issue in this case is the
effect of the MOA provision that attorney’s fees shall be
deducted from the AA and CBA receivables. The attorney’s
fees contracted under the MOA do not refer to the amount of
attorney’s fees awarded by the NLRC; the MOA provision on
attorney’s fees does not have any bearing at all to the
attorney’s fees awarded by the NLRC under Art. 111
H: The 10% attorney’s fees awarded by the NLRC on the basis
of Art. 111, LC accrue to the Union’s members as indemnity
for damages and not to the Union’s counsel as compensation
for his legal services, unless, they agreed that the award shall
be given to their counsel
as additional or part of his compensation
Payment of Special Assessment
LC, Art 247 (n), (o), supra p. 26 [in relation to Art 228 (b)]
LC, Art. 228. Appearances and Fees.
b. No attorney’s fees, negotiation fees or similar charges of
any kind arising from any collective bargaining agreement
shall be imposed on any individual member of the contracting
union: Provided, However, that attorney’s fees may be charged
against union funds in an amount to be agreed upon by the
parties. Any contract, agreement or arrangement of any sort to
the contrary shall be null and void.
Special assessments – payments for a special purpose,
especially if required only for a limited time.
Requirements for validity of special assessment:
1. Authorization by written resolution of majority of ALL the
members at the general membership meeting called for
that purpose
2. Secretary’s record of the minutes of the meetings attested
to by the president.
3. Individual written authorization for check-off duly signed
by the employees concerned.
GABRIEL v. SEC OF LABOR (2000)
D: Check-off – A process or device whereby the employer, on
agreement with the Union, recognized as the proper
bargaining representative, or on prior authorization from the
employees, deducts union dues or agency fees from the
latter’s wages and remits them directly to the Union.
F: Union resolution provided that 10% of total economic
benefits that may be secured in the new CBA to be negotiated
would go to atty’s fees. Company checked off the atty’s fees

from the individual salaries of the members, as per their
agreement.
H: Court held that the 3rd requisite for a valid special
assessment (refer to requisites above) which is Individual
written authorization for check-off duly signed by the
employees concerned is lacking, hence it can’t be allowed.
The reimbursement for atty’s fees is to be charged against the
union general fund.
MARIÑO v. GAMILLA (2009)
D: The general rule is attorney’s fees, negotiation fees, and
other similar charges may only be collected from union funds,
not from the amounts that pertain to individual union
members with the exception of special assessments or other
extraordinary fees which may be levied upon or checked off
from any amount due an employee for as long as there is
proper authorization by the employee.
F: USTFU deducted a Php4.2M (10%) check-off as payment
for union dues, special assessment for Labor Education Fund,
and attorney’s fees from the economic benefits package
awarded to union members.
H: The SC held that it was not a valid check-off because
express consent is required from the members of the
collective bargaining unit, and this consent must be obtained
in accordance with the steps outlined by law.
5. Mandatory Activity
Art 247 (o), supra p. 26
VENGCO v. TRAJANO (1989)
D: A mandatory activity has been defined as a judicial process
of settling dispute laid down by the law. LC 247 (o) does not
allow deduction from any amount due an employee without
authorization except for a mandatory activity.
F: As part of a compromise agreement between Employeer
and Union, Timbungco, as union president, received PHP
150,000 which he distributed among the union members.
Petitioners filed a complaint against Timbungco on the
ground that he was not authorized to deduct 10% from the
PHP150,000 to pay for attorney’s fees.
H: The amicable settlement entered into by the management
and the union can’t be considered as a mandatory activity
under the Code. The case never reached its conclusion in view
of the parties’ agreement.
GALVADORES v. TRAJANO (1986)
D: Other than for mandatory activities under the Code, no
special assessment, attorney's fees, negotiation fees or any
other extraordinary fees may be checked off from any amount
due an employee without individual written authorization duly
signed by the employee. The authorization should specifically
state the amount, purpose and beneficiary of the deduction
F: Members of Union of PLDT contest the award of P1M to
their legal counsel after the negotiations for the CBA because
there must be individual written authorization before any
assessment may be made against their monetary benefits (Art
247 LC). PLDT and the counsel argue that the compulsory
arbitration during negotiation falls under the “mandatory
UP LAW C2017 LABOR 2 (PROF. DAWAY) MIDTERMS REVIEWER | 32
activity” exception provided in Art 247 (o).
H: SC held that benefits awarded to PLDT employees still
formed part of the collective bargaining negotiations although
placed under compulsory arbitration. The compulsory
arbitration is not the "mandatory activity" under the Code.
6. Union Information/ Obligation
Art 247 (p), supra p. 26
• Reason for the need to inform members: To
EMPOWER general membership
CONTINENTAL CEMENT CORP. LABOR UNION v.
CONTINENTAL CEMENT (1990)
D: Union officers are obliged to guide their members to
respect the law. The responsibility of Union officers is greater
than that of the members.
F: NLU staged a strike in violation of the no-strike policy of the
State. Continental is engaged in the manufacture of cement,
thus, a vital industry. NLRC dismissed the Union officers and
suspended the striking Union members.
H: Court held that the penalties meted out were proper. Said
officers urged the members to violate the law and defy the
authorities.
7. Enforcement and Remedies – Procedure Jurisdiction and
Sanctions
(Note: This must be deemed revised by amendments
introduced by RA No. 9481 [i.e. Art 248-A] May 25, 2007)
Art 247, last two paragraphs
Any violation of the above rights and conditions of
membership shall be a ground for cancellation of union
registration or expulsion of officers from office, whichever is
appropriate. At least thirty percent (30%) of the members of a
union or any member or members specially concerned may
report such violation to the Bureau. The Bureau shall have the
power to hear and decide any reported violation to mete the
appropriate penalty.
Criminal and civil liabilities arising from violations of above
rights and conditions of membership shall continue to be
under the jurisdiction of ordinary courts.
Art. 242-A. Reportorial Requirements. - The following are
documents required to be submitted to the Bureau by the
legitimate labor organization concerned:
(a) Its constitution and by-laws, or amendments thereto, the
minutes of ratification, and the list of members who took
part in the ratification of the constitution and by-laws
within thirty (30) days from adoption or ratification of the
constitution and by-lam or amendments thereto;
(b) Its list of officers, minutes of the election of officers, and
list of voters within thirty (30) days from election;
(c) Its annual financial report within thirty (30) days after the
close of every fiscal year; and
(d) Its list of members at least once a year or whenever
required by the Bureau.
Failure to comply with the above requirements shall not be a
ground for cancellation of union registration but shall subject
the erring officers or members to suspension, expulsion from
membership, or any appropriate penalty.

LC, Art. 280, supra p. 29
LC, Arts. 294 -295, supra p. 16
Book V, Rule XIV (as amended by D.O. 40-F-03, s. 2008),
supra p. 24
Book V, Rule XV (as amended by D.O. No. 40-F-03, s. 2008)
RULE XV REGISTRY OF LABOR ORGANIZATIONS AND
COLLECTIVE BARGAINING AGREEMENTS
Sec. 1. National Registry – The Bureau Shall be the national
registry of labor organizations and collective bargaining
agreements. As such it shall:
(a) Maintain a national registry;
(b) Within the month of March following the end of the
calendar year, publish in the Department of Labor and
Employment website the lists of labor organizations and
federations which have complied with the reportorial
requirements of Rule V and delinquent labor
organizations;
(c) Publish a list of officers of labor organizations with
criminal conviction by final judgment; and
(d) Verify the existence of a registered labor organization
with no registered collective bargaining agreement and
which has not been complying with the reportorial
requirements for at least five years. The verification shall
observe the following process:
1. The Regional Office shall make a report of the labor
organization's non- compliance and submit the same to the
Bureau for verification. The Bureau shall send by registered
mail with return card to the labor organization concerned, a
notice for compliance indicating the documents it failed to
submit and the corresponding period in which they were
required, with notice to comply with the said reportorial
requirements and to submit proof thereof to the Bureau within
ten (10) days from receipt thereof.
Where no response is received by the Bureau within thirty (30)
days from the service of the first notice, it shall send another
notice for compliance, with warning that failure on its part to
comply with the reportorial requirements within the time
specified shall cause its publication as a non-existing labor
organization in the DOLE website.
2. Where no response is received by the Bureau within thirty
(30) days from service of the second notice, the Bureau shall
publish the notice of non-existence of the labor
organization/s in the DOLE website.
3. Where no response is received by the Bureau within thirty
(30) days from date of publication, or where the Bureau has
verified the dissolution of the labor organization, it shall delist
the labor organization from the roster of legitimate labor
organizations.
Sec. 2. Repealing Clause. - All rules, regulations, issuances,
circulars and administrative orders inconsistent herewith are
repealed or modified accordingly.
Sec. 3. Effectivity. - This Order shall take effect fifteen (15)
days after its publication in a newspaper of general
circulation.
Cancellation of Registration:
- There must be notice and due process
UP LAW C2017 LABOR 2 (PROF. DAWAY) MIDTERMS REVIEWER | 33
- Petition for cancellation of union registration or
application for voluntary dissolution must be
filed
- Filed in the regional office which issued its
certificate of registration or creation
- Done by the Regional Director
Expulsion
• The remedy against erring union officers is not
referendum but union expulsion.
• Expulsion of union officers and members must be
done with due process. It must be for a valid cause
and by following proper procedure.
DUYAG v. INCIONG (1980)
D: Last paragraph of Art. 247 provides that any violation of the
rights and conditions of union membership, as enumerated in
paragraphs (a) to (p) of article 247, "shall be a ground for
cancellation of union registration or expulsion of officer from
office, whichever is appropriate. At least thirty percent (30%)
of all the members of a union or any member or members
specially concerned may report such violation to the Bureau
(of Labor Relations). The Bureau shall have the power to hear
and decide any reported violation to mete the appropriate
penalty"
F: Several charges were filed against respondent union
officers due to these, Labor Arbiter ordered their expulsion
from the union. This was reversed as the Director of Labor
Relations argues that removal of the union officers rests with
the members.
H: Under Art. 247 (second to the last paragraph), Bureau is
expressly granted the power to mete the appropriate penalty.
8. Union Leave
MALAYAN EMPLOYEES ASSOCIATION – FFW
v. MALAYAN INSURANCE (2010)
D: The union leave grant cannot be considered separately
from the other provisions of the CBA, particularly the provision
on management prerogatives. There is nothing in the
wordings of the union leave provision that removes from the
company the right to prescribe reasonable rules and
regulations to govern the manner of availing of union leaves,
particularly the prerogative to require prior approval.
F: CBA of the Company and the Union, the company allows
union officials to avail of union leaves with pay for the
purpose of attending grievance meetings, Labor-Management
Committee meetings, annual National Labor Management
Conferences, labor education programs and seminars, and
other union activities. Eventually, the company issued a rule
requiring prior approval by the department head before
availing of the union leave. Mangalino filed for a union leave
but was disapproved. Still, Mangalino proceeded to take the
union leave. The Company suspended him. The Union
contends that such suspension was invalid.
H: The Court held that the suspension was valid.
G. Union Chartering and Affiliation:
Local and Parent Union Relations
Bk. V, Rule III REGISTRATION OF LABOR ORGANIZATIONS
SEC. 1. Where to file. - Applications for registration of

independent labor unions, chartered locals, workers'
associations shall be filed with the Regional Office where the
applicant principally operates. It shall be processed by the
Labor Relations Division at the Regional Office in accordance
with Sections 2-A, 2-C, and 2-E of this Rule.
Applications for registration of federations, national unions or
workers' associations operating in more than one region shall
be filed with the Bureau or the Regional Offices, but shall be
processed by the Bureau in accordance with Sections 2-B and
2-D of this Rule.
SEC. 2. Requirements for application. - A. The application for
registration of an independent labor union shall be
accompanied by the following documents:
(a) the name of the applicant labor union, its principal
address, the name of its officers and their respective
addresses, approximate number of employees in the
bargaining unit where it seeks to operate, with a
statement that it is not reported as a chartered local of
any federation or national union;
(b) the minutes of the organizational meeting(s) and the list
of employees who participated in the said meeting(s);
(c) the name of all its members comprising at least 20% of
the employees in the bargaining unit;
(d) the annual financial reports if the applicant has been in
existence for one or more years, unless it has not
collected any amount from the members, in which case a
statement to this effect shall be included in the
application;
(e) the applicant's constitution and by-laws, minutes of its
adoption or ratification, and the list of the members who
participated in it. The list of ratifying members shall be
dispensed with where the constitution and by-laws was
ratified or adopted during the organizational meeting. In
such a case, the factual circumstances of the ratification
shall be recorded in the minutes of the organizational
meeting(s).
B. The application for registration of federations and national
unions shall be accompanied by the following documents:
(a) a statement indicating the name of the applicant labor
union, its principal address, the name of its officers and
their respective addresses;
(b) the minutes of the organizational meeting(s) and the list
of employees who participated in the said meeting(s);
(c) the annual financial reports if the applicant union has
been in existence for one or more years, unless it has not
collected any amount from the members, in which case a
statement to this effect shall be included in the
application;
(d) the applicant union's constitution and by-laws, minutes
of its adoption or ratification, and the list of the members
who participated in it. The list of ratifying members shall
be dispensed with where the constitution and by-laws
was ratified or adopted during the organizational
meeting(s). In such a case, the factual circumstances of
the ratification shall be recorded in the minutes of the
organizational meeting(s);
(e) the resolution of affiliation of at least ten (10) legitimate
labor organizations, whether independent unions or
chartered locals, each of which must be a duly certified or
recognized bargaining agent in the establishment where it
seeks to operate; and
(f) the name and addresses of the companies where the
affiliates operate and the list of all the members in each
company involved.
UP LAW C2017 LABOR 2 (PROF. DAWAY) MIDTERMS REVIEWER | 34
Labor organizations operating within an identified industry
may also apply for registration as a federation or national
union within the specified industry by submitting to the
Bureau the same set of documents.
C. The application for registration of a workers' association
shall be accompanied by the following documents:
(a) the name of the applicant association, its principal
address, the name of its officers and their respective
addresses;
(b) the minutes of the organizational meeting(s) and the list
of members who participated therein;
(c) the financial reports of the applicant association if it has
been in existence for one or more years, unless it has not
collected any amount from the members, in which case a
statement to this effect shall be included in the
application;
(d) the applicant's constitution and by-laws to which must be
attached the names of ratifying members, the minutes of
adoption or ratification of the constitution and by-laws
and the date when ratification was made, unless
ratification was done in the organizational meeting(s), in
which case such fact shall be reflected in the minutes of
the organizational meeting(s).
D. Application for registration of a workers' association
operating in more than one region shall be accompanied, in
addition to the requirements in the preceding subsection, by a
resolution of membership of each member association, duly
approved by its board of directors.
E. A duly-registered federation or national union may directly
create a chartered local by submitting to the Regional Office
two (2) copies of the following:
(a) A charter certificate issued by the federation or national
union indicating the creation or establishment of the
local/chapter;
(b) The names of the local/chapter’s officers, their
addresses, and the principal office of the local/chapter;
and
(c) The local/chapter’s constitution and by-laws, provided
that where the local/chapter’s constitution and by-laws is
the same as that of the federation or national union, this
fact shall be indicated accordingly.
All of the foregoing supporting requirements shall be certified
under oath by the Secretary or the Treasurer of the
local/chapter and attested by its President.
SEC. 3. Notice of change of name of labor organizations;
Where to file. - The notice for change of name of a registered
labor organization shall be filed with the Bureau or the
Regional Office where the concerned labor organization's
certificate of registration or certificate of creation of a
chartered local was issued.
SEC. 4. Requirements for notice of change of name. - The
notice for change of name of a labor organization shall be
accompanied by the following documents:
(a) proof of approval or ratification of change of name; and
(b) the amended constitution and by-laws.
SEC. 5. Certificate of Registration/Certificate of Creation of
Chartered Local for change of name. - The certificate of
registration and the certificate of creation of a chartered local
issued to the labor organization for change of name shall bear
the same registration number as the original certificate issued

in its favor and shall indicate the following: (a) the new name
of the labor organization; (b) its former name; (c) its office or
business address; and (d) the date when the labor
organization acquired legitimate personality as stated in its
original certificate of registration/certificate of creation of
chartered local.
SEC. 6. Report of Affiliation with federations or national
unions; Where to file. - The report of affiliation of an
independently registered labor union with a federation or
national union shall be filed with the Regional Office that
issued its certificate of registration.
SEC. 7. Requirements of affiliation. - The report of affiliation
of independently registered labor unions with a federation or
national union shall be accompanied by the following
documents:
(a) resolution of the labor union's board of directors
approving the affiliation;
(b) minutes of the general membership meeting approving
the affiliation;
(c) the total number of members comprising the labor union
and the names of members who approved the affiliation;
(d) the certificate of affiliation issued by the federation in
favor of the independently registered labor union; and
(e) written notice to the employer concerned if the affiliating
union is the incumbent bargaining agent.
SEC. 8. Notice of Merger/Consolidation of labor
organizations; Where to file. - Notice of merger or
consolidation of independent labor unions, chartered locals
and workers' associations shall be filed with and recorded by
the Regional Office that issued the certificate of
registration/certificate of creation of chartered local of either
the merging or consolidating labor organization. Notice of
merger or consolidation of federations or national unions shall
be filed with and recorded by the Bureau.
SEC. 9. Requirements of notice of merger. - The notice of
merger of labor organizations shall be accompanied by the
following documents:
(a) the minutes of merger convention or general membership
meeting(s) of all the merging labor organizations, with the
list of their respective members who approved the same;
and
(b) the amended constitution and by-laws and minutes of its
ratification, unless ratification transpired in the merger
convention, which fact shall be indicated accordingly.
SEC. 10. Certificate of Registration. - The certificate of
registration issued to merged labor organizations shall bear
the registration number of one of the merging labor
organizations as agreed upon by the parties to the merger.
The certificate of registration shall indicate the following: (a)
the new name of the merged labor organization; (b) the fact
that it is a merger of two or more labor organizations; (c) the
name of the labor organizations that were merged; (d) its
office or business address; and (e) the date when each of the
merging labor organizations acquired legitimate personality
as stated in their respective original certificate of registration.
SEC. 11. Requirements of notice of consolidation. - The
notice of consolidation of labor organizations shall be
accompanied by the following documents:
(a) the minutes of consolidation convention of all the
consolidating labor organizations, with the list of their
UP LAW C2017 LABOR 2 (PROF. DAWAY) MIDTERMS REVIEWER | 35
respective members who approved the same; and the
amended constitution and by-laws, minutes of its ratification
transpired in the consolidation convention or in the same
general membership meeting(s), which fact shall be indicated
accordingly
SEC. 12. Certificate of Registration. - The certificate of
registration issued to a consolidated labor organization shall
bear the registration number of one of the consolidating labor
organizations as agreed upon by the parties to the
consolidation.
The certificate of registration shall indicate the following (a)
the new name of the consolidated labor organization; (b) the
fact that it is a consolidation of two or more labor
organizations; (c) the name of the labor organizations that
were consolidated; (d) its office or business address; and (e)
the date when each of the consolidating labor organizations
acquired legitimate personality as stated in their respective
original certificates of registration.
1. Affiliation; Purpose; Nature of Relationship between local
union & federation
• Agency relationship wherein the local union is the
principal and the federation is the agent
• The federation does not automatically have authority
to act on behalf of the local union. It must be given
authority by the local union.
INSULAR HOTEL UNION v. WATERFRONT HOTEL (2010)
D: the relationship between the local union and the labor
federation or national union with which the former is affiliated
is generally understood to be that of agency—with the former
being the agent, and the latter being the principal, so the local
union can still act individually, free of the federation.
F: Insular Hotel suspended operations due to business losses.
Insular Hotel and the union signed a MOA, and the hotel
reopened subject to certain concessions. Later, 2 union
members filed a Notice of Mediation with the NCMB, alleging
“diminution of benefits through unlawful MOA.” The Notice of
Mediation stated that the union involved was National
Federation of Labor (NFL), which the union was affiliated with.
However, the Submission Agreement stated that the union
involved was Insular Employees Hotel Union-NFL. In
subsequent pleadings, NFL’s legal counsel even confirmed
that the case was not filed by the union, but by NFL and the
individual employees named in special powers of attorney
H: NFL had no authority to file the complaint on behalf of the
individual employees. Even granting that the union was
affiliated with NFL, the only persons allowed to file a notice of
mediation are certified bargaining representatives, so if the
federation wanted to act on behalf of the local union, it should
have presented proof of its authority to do so.
a. Independent/local union
Book V, Rule I, Sec. 1 (w) "Independent Union" refers to a labor
organization operating at the enterprise level that acquired
legal personality through independent registration under
Article 234 of the Labor Code and Rule III, Section 2-A of these
Rules.

b. Chartered local (local/chapter)
For purposes of filing a petition for certification election,
acquires legal personality upon issuance of a charter
certificate by the duly-registered federation or national union.
To be entitled to all the other rights and privileges of a
legitimate labor organization, must also submit
• The names of the local/chapter’s officers, their
addresses, and the principal office of the
local/chapter, and
• The chapter’s constitution and by-laws. If the
chapter’s constitution and by-laws are the same as
that of the federation or the national union, this fact
shall be indicated
Trade union centers cannot issue charter certificates. The
authority is given only to duly-registered federations and
national unions.
Book V, Rule I, Sec. 1 (i) “Chartered Local” refers to a labor
organization in the private sector operating at the enterprise
level that acquired legal personality through registration with
the Regional Office in accordance with Rule III, Section 2-E of
these Rules.
SMC UNION v. SM PACKAGING (2007)
D: Since under the pertinent status and applicable
implementing rules, the power granted to labor organizations
to directly create a chapter or local through chartering is given
to a federation or national union, then a trade union center is
without authority to charter directly.
F: SMCEU-PTGWO challenges the legitimacy of SMPPEU-
PDMP as a labor organization. SMPPEU-PDMP is registered
with the BLR as a “local” or “chapter” of PDMP and was issued
a charter certificate, so it was directly chartered by PDMP.
SMCEU-PTGWO claimed that PDMP was not a legitimate labor
organization but a trade union center, hence it cannot directly
create a local or chapter.
H: PDMP cannot create a charter because it is merely a trade
union center. Although PDMP as a trade union center is a
legitimate labor organization, it has no power to directly create
a local or chapter. Thus, SMPPEU-PDMP cannot be created
under the more lenient requirements for chartering, but must
have complied with the more stringent rules for creation and
registration of an independent union, including the 20%
membership requirement.
COASTAL SUBIC BAY v. DOLE (2006) supra p. 21
D: A local union does not owe its existence to the federation
with which it is affiliated. It is a separate and voluntary
association owing its creation to the will of its members.
Hence, local unions are considered principals while the
federation is deemed to be merely their agent. As such
principals, the unions are entitled to exercise the rights and
privileges of a legitimate labor organization, including the right
to seek a certification election.
c. Affiliate
Book V, Rule I, Sec. 1 (a) "Affiliate" refers to an independent
union affiliated with a federation, national union or a chartered
local which was subsequently granted independent
registration but did not disaffiliate from its federation,
reported to the Regional Office and the Bureau in accordance
with Rule III, Sections 6 and 7 of these Rules.
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d. National Union or Federation
Book V, Rule I, Sec. 1 (kk) "National Union" or "Federation"
refers to a group of legitimate labor unions in a private
establishment organized for collective bargaining or for
dealing with employers concerning terms and conditions of
employment for their member unions or for participating in the
formulation of social and employment policies, standards and
programs, registered with the Bureau in accordance with Rule
III, Section 2-B of these Rules.
SUGBUANON RURAL BANK v. LAGUESMA (2000)
D: A local union maintains its separate personality despite
affiliation with a larger national federation. One of the rights of
a legitimate labor organization is the right to be certified as
the exclusive representative of all employees in an appropriate
bargaining unit for purposes of collective bargaining. Under
Art 263, the med-Arbiter is mandated to automatically
conduct a certification election upon the filing of a petition by
a legitimate labor organization.
F: Union APSOTEU, which was affiliated with national
federation TUCP, filed a petition for certification election of the
supervisory employees of bank. Bank filed a motion to
dismiss, claiming (1) that union was represented by ALU-
TUCP, which also represented the rank-and-file employees, in
violation of the principle of separation of unions, and (2) that
there is still a pending appeal on the issue of the Union’s
registration.
H: Med Arbiter correctly ordered holding of certification
election. (1) No violation of principle of separation of unions.
Petition was filed by union, not ALU or TUCP. Union was
initially assisted by ALU during its preliminary stages of
organization. (2) Nothing in the law prohibits such automatic
conduct if there is a pending issue on the union’s registration.
FILIPINO PIPE & FOUNDRY v. NLRC (1999)
D: The mother union, acting for and in behalf of its affiliate,
had the status of an agent while the local union remained the
basic unit of the association, free to serve the common
interest of all its members subject only to the restraints
imposed by the constitution and by­laws of the association.
(Progressive Dev’t v. SOLE)
F: National federation NLU-TUCP filed a notice of strike on
behalf its local union. Union P a g e | 99 went on a months-
long strike. Consequently, employer filed a petition to declare
the strike illegal with prayer for damages, against union,
national federation, and federation president.
H: Strike was illegal due to lack of legal basis, but federation
and federation president are not liable for damages. The
federation was merely acting as an agent of its principal, the
union. Direct and primary responsibility for the damages
allegedly caused by the illegal strike fall on the union, being
the principal, and not on the federation, a mere agent which
assisted the union in filing the notice of strike. Being just an
agent, the notice of strike filed by the federation is deemed to
have been filed by its principal, the union. Having dismissed
the claim for damages against the principal, the action for
damages against the agent should also be dismissed.
2. Supervisors and File Union Affiliation
• Supervisors may not join the rank and file union, but may
form its own union.

• The rank and file union and the supervisors’ union may
join the same federation or national union, even if they
operate within the same establishment.
o As long as the federation is not actively involved
in the union activities in the company
o And as long as the rank-and-file employees are
not directly under the supervision of the
supervisory employees
• The inclusion as union members of employees outside the
bargaining unit (e.g. supervisory employees in the rank-
and-file-union) is not a ground for the cancellation of
registration of the union. Automatically removed from list.
Labor Code, Art. 251. supra p. 7
Labor Code, Art. 251-A., supra p. 23 or infra p. 40
A. Principle of Separation of Unions/ Effects of Violation on
Legitimacy of The LO
DE LA SALLE UNIVERSITY v. LAGUESMA (1998)
D: Two conditions had to concur for such affiliation to be
valid: First, the rank-and-file employees are directly under the
authority of supervisory employees. Second, the national
federation is actively involved in union activities in the
company.
F: The Federation of Free Workers (FFW), a national federation
of labor unions, issued a certificate to DLSUMCCM
Supervisory Union Chapter recognizing it as a local chapter.
FFW filed on behalf of the union a petition for certification
election among the supervisory employees of DLSU-MC. This
was opposed by DLSU-MC, which claimed that the act of
supervisory employees in affiliating with FFW to who the rank
and file employees are also affiliated is violates Art. 245.
H: SC ruled that unions formed independently by supervisory
and rank and file employees of a company may validly affiliate
with the same national federation.
ATLAS LITHOGRAPHIC v. LAGUESMA (1992)
D: Given that the rank-and-file employees are directly under
the authority of supervisory employees and that the national
federation is actively involved in union activities in the
company, such prohibition is meant to prevent a conflict of
interest between the two distinct types of employees.
F: A supervisory union (ALSI-SAPPACEA-KAMPIL) was
affiliated with a national union (Kampil-Katipunan),
which also represents the rank-and-file employees’ union.
H: The court ruled that this affiliation still runs contrary to the
intention of Art. 245 of the Labor Code, which was meant to
prevent supervisory employees from joining rank-and file
labor unions.
HOLY CHILD SCHOOL v. HON. STO TOMAS (2013) supra p. 10
D: The invalidity of membership of one of the organizers does
not make the union illegal, where the requirements of the law
for the organization thereof are, nevertheless, satisfied and
met. Although such mingling must not be brought about by
misrepresentation, false statement or fraud under Article 239
of the Labor Code.
UP LAW C2017 LABOR 2 (PROF. DAWAY) MIDTERMS REVIEWER | 37
3. Local Union Disaffiliation: Nature of Right and Legality
• A local union may disaffiliate at any time from its mother
federation.
o As long as it is not prohibited under its
Constitution and by-laws.
• The mere act of disaffiliation does not divest the local
union of its own personality.
• Disaffiliation does not give the mother federation the
license to act independently of the local union, due to the
agency relationship between them.
• Local unions owe their existence to the will of the
members, not to the federation which they are affiliated
with.
PHIL. SKYLANDERS v. NLRC (2002)
D: Local unions remain the basic units of association, free to
serve their own interests subject to the restraints imposed by
the constitution and by-laws of the national federation, and
free also to renounce the affiliation upon the terms laid down
in the agreement which brought such affiliation into existence
F: Union PSEA, an affiliate of the federation PAFLU, won the
certification election and became the bargaining agent of the
company’s rank-and-file employees. A rival union,
PSEAWATU, filed an election protest. Pending this protest,
PSEA sent a notice of disaffiliation to PAFLU and affiliated
itself with NCW. PAFLU contests the disaffiliation.
H: SC held that PSEA validly disaffiliated from PAFLU and that
the right of local unions to separate from their mother
federation on the ground that as separate and voluntary
associations. Furthermore, there was no showing that
conditions were imposed for a valid disaffiliation.
MSMG-UWP v. RAMOS (2000)
D: Being a separate and voluntary association, the Local Union
is free to serve the interests of all its members including the
freedom to disaffiliate or declare its autonomy. Such
disaffiliation cannot be considered disloyalty
F: The local union and federation had a bitter disagreement
due to a P50 fine imposed on several union members who
absented from a general membership meeting. The federation
placed the Local Union under a trusteeship and expelled 30
union officers from the union and demanded their separation
from employment pursuant to the Union Security Clause. The
company terminated them, and a strike was held.
H: Court held that the federation had no valid reason to
demand their dismissal. A local union has the right to
disaffiliate from its mother union or declare its autonomy.
4. Sole Essence of Affiliation Vis-à-Vis the Local Union’s Right
to Disaffiliate/ Declare Autonomy
NUBE v. PEMA (2013)
D: A local union which has affiliated itself with a federation is
free to sever such affiliation anytime and such disaffiliation
cannot be considered disloyalty. In the absence of specific
provisions in the federation's constitution prohibiting
disaffiliation or the declaration of autonomy of a local union, a
local may dissociate with its parent union.
F: After the expiration of the CBA, PEMA-FFW (another union)

filed a petition for Certification Election (CE). Meanwhile,
NUBE-PEC disaffiliated with NUBE and sought independent
registration. PEMA (the previous NUBE-PEC) wrote a letter to
PNB to stop remitting the P15 to NUBE. NUBE opposed
PEMA’s move to stop the remittances.
H: The SC affirmed disaffiliation saying that local unions have
a right to disaffiliate itself with the federation at any time,
absent any showing that the same is prohibited under its
constitution or rule
5. Mass Disaffiliation
• Mass disaffiliation of members from a union is valid.
• Mass disaffiliation is implicit in the freedom of
association in the Constitution, which allows any
individual to join an organization of his choice, as in this
case, to struggle for better terms and conditions in the
work place. Union members could disaffiliate as an
exercise of their freedom of association.
PHIL. LABOR ALLIANCE COUNCIL v. BLR (1977)
D: Mass disaffiliation is implicit in the freedom of association
in the Constitution, which allows any individual to join an
organization of his choice, as in this case, to struggle for
better terms and conditions in the work place. Union members
could disaffiliate as an exercise of their freedom of
association
F: Ten months before the expiry of the CBA, PLAC renegotiated
it and alleged that it was ratified by an unanimous vote and
alleged that they were the sole union in the company. FFW
contending 60% membership of rank and file employees and
disaffiliation from PLAC sought certification election.
H: SC stated that once disaffiliation is proved beyond doubt,
certification election is the most expeditious way of
determining the exclusive bargaining representative. An
exception to this rule is a contract-bar rule when the CBA is
inforce for a reasonable duration but not in this case.
6. Period
• General rule: A labor union may only disaffiliate during the
60-day freedom period immediately preceding the CBA.
o Exception: It may disaffiliate when there is a shift
of allegiance on the part of the majority of the
members of the union.
ALLIANCE OF NATIONALIST v. SAMANA (1996)
D: Generally, a labor union may disaffiliate from the mother
union to form a local or independent union only during the 60-
day freedom period immediately preceding the expiration of
the CBA. However, even before the onset of the freedom
period, disaffiliation may be carried out when there is a shift of
allegiance on the part of the majority of the members of the
union.
F: Union SAMANA BAY decided to disaffiliate from ANGLO in
view of the latter’s dereliction of its duty to promote and
advance the welfare of union members. This was unanimously
approved by union members. ANGLO contends that the
disaffiliation was void because the procedural requirements
for a valid disaffiliation were not followed, and that it was
made in violation of P.D. 1391 (no disaffiliation shall be given
UP LAW C2017 LABOR 2 (PROF. DAWAY) MIDTERMS REVIEWER | 38
due course except within the 60- day freedom period
immediately preceding the expiration of a CBA).
H: In this case, the SC held that such disaffiliation, no doubt
was raised on the support of the majority of the union
members on the decision to disaffiliate. Non-compliance with
the procedure on disaffiliation, being premised on purely
technical grounds cannot rise above the fundamental right of
self-organization.
V. THE APPROPRIATE BARGAINING UNIT .
A. Law And Definition
Appropriate Bargaining Unit
• A group of employees sharing mutual interests within
a given employer unit
• Comprised of:
o all or less than all of the entire body of
employees in the employer unit; OR
o any specific occupational or geographical
grouping within such employer unit.
• A group of employees of a given employer, comprised
of all or less than all of the entire body of employees,
which the collective interest of all employees,
consistent with equity to the employer, indicate to be
best suited to serve reciprocal rights and duties of the
parties under the collective bargaining provisions of
the law.
LC, Art 261. Exclusive bargaining representation and workers’
participation in policy and decision-making. The labor
organization designated or selected by the majority of the
employees in an appropriate collective bargaining unit shall be
the exclusive representative of the employees in such unit for
the purpose of collective bargaining. However, an individual
employee or group of employees shall have the right at any
time to present grievances to their employer.
Full provision (Art. 261) on p. 41, infra
LC, Art 248 Unfair Labor Practices (b) To require as a
condition of employment that a person or an employee shall
not join a labor organization or shall withdraw from one to
which he belongs
Book V, Rule I, Sec. 1 (d) “Bargaining Unit” refers to a group of
employees sharing mutual interests within a given employer
unit, comprised of all or less than all of the entire body of
employees in the employer unit or any specific occupational
or geographical grouping within such employer unit.
BELYCA CORP. v. CALLEJA (1988)
D: In any event, whether importance is focused on the
employment status or the mutuality of interest of employees
concerned, the basic test of an asserted bargaining unit’s
acceptability is whether or not it is fundamentally the
combination which will best assure to all employees the
exercise of their collective bargaining rights.
F: Union sought direct certification as the sole and exclusive
bargaining agent of all the rank-and-file workers of the
company’s live- stock-agro division. Company contended that
the bargaining unit must include all the workers in its

integrated business concerns (ranging from piggery and
poultry, to supermarkets and cinemas) so as not to split an
otherwise single bargaining unit into fragmented bargaining
units.
H: Court held that rank and file employees of the livestock-
agro division fully constitute a bargaining unit that satisfies
both requirements of classification according to employment
status and of the substantial, similarity of work and duties,
which ultimately assure its members the exercise of their
collective bargaining rights.
B. Determination Of Appropriate Bargaining Unit
Factors considered in determining the proper constituency of a
collective bargaining unit:
1. Will of employees (Globe Doctrine)
2. Affinity and unity of employee's interest, such as
substantial similarity of work and duties or similarity
of compensation and working conditions
(Substantial-mutual Interest Test/ Community or
Mutiality of Interests Test)
3. Prior collective bargaining history
4. Employment status, such as temporary, seasonal and
probationary employees
OTHER FACTORS:
• History, extent and type of organization of employees
in other plants of the same employer or other
employers in the same industry
• Skill, wages, work and working conditions of the
employees
Desires of the employees
• Eligibility of the employees for membership in the
union or unions involved
Relationship between the unit or units proposed
• Employer’s organization, management and operation
1. Factors – Unit Determination
U.P. v. FERRER-CALLEJA (1992)
D: The "community or mutuality of interests" test has provided
the standard in determining the proper constituency of a
collective bargaining unit.
F: The Director of the BLR promulgated and Order stating that
professors, associate professors, and assistant professors
should be grouped with rank-and-file employees under one
collective bargaining unit.
H: The SC ruled that the community or mutuality of interests
which justifies the formation of a single collective bargaining
unit is wanting between the academic and nonacademic
personnel of the university. The formation of two separate
bargaining units is the set-up that will best assure to all the
employees the exercise of their collective bargaining rights.
SAN MIGUEL v. LAGUESMA (1994)
D: The existence of a prior collective bargaining history is
neither decisive nor conclusive in the determination of what
constitutes an appropriate bargaining unit.
F: SMC assailed the certification of the North Luzon Labor
Union as the sole and exclusive bargaining agent for all the
regular sales personnel in all the sales offices of Magnolia
UP LAW C2017 LABOR 2 (PROF. DAWAY) MIDTERMS REVIEWER | 39
Dairy Products in North Luzon, insisting that its collective
bargaining history of having a separate bargaining unit for
each sales office should be the most persuasive criterion in
determining the appropriateness of a collective bargaining
unit.
H: There is similarity of employment status since only the
regular sales personnel in North Luzon are covered. There is
substantial mutual interest since the employees have the
same duties and responsibilities and substantially similar
compensation and working conditions. Also, San Miguel
cannot insist that each sales office should constitute only one
bargaining unit because of the meager number of sales
personnel in each office.
2. “Community or Mutuality of Interests” Test
SAN MIGUEL FOODS v. SMC SUPERVISORS (2011)
D: There is certainly a mutuality of interest among the
employees when their functions mesh with one another.
Certain factors, such as specific line of work, working
conditions, location of work, mode of compensation, and other
relevant conditions do not affect or impede their commonality
of interest.
F: San Miguel wanted to exclude certain employees from the
bargaining unit. It argued that employees involved in “live”
chicken operations should not be included in the bargaining
unit of employees involved in “dressed” chicken processing.
H: There should only be 1 bargaining unit for those employees
involved in “dressed” chicken processing and those engaged
in “live” chicken operations. Although they seem separate and
distinct from each other, the specific tasks of each division
are actually interrelated and there exists mutuality of interests
which warrants the formation of a single bargaining unit.
3. Unit Severance and Globe Doctrine
MECHANICAL DEPT. UNION v. CIR (1968)
D: Globe Doctrine states that the will of the employees is one
of the fundamental factors in determining the appropriate
bargaining unit.
F: The Mechanical Department of PNR is composed of 4 units.
MDLU represents two of these units. Samahan ng
Manggagawa sa Caloocan Shops seeks to be the
representative of the Shops Rolling Stocks Maintenance
Division. CIR ordered that a plebiscite be held to determine
whether the employees at the Caloocan Shops desire that
Samahan be separated from the MDLU.
H: Court held that the application of the Globe doctrine is
warranted. The Caloocan shops workers have a community of
interest and working conditions. Moreover, they require
special skills in the use of heavy equipment and machinery,
sufficient to set them apart from the rest of the workers.
KAIPISANAN SA MANILA RAILROAD v. YARD CREW UNION
(1960)
D: CIR has the right of full investigation in arriving at a correct
and conclusive finding of fact in order to deny or grant the
petitions for certification election, and one way of determining
the will or desire of the employees is what it had suggested:
plebiscite carried by secret ballot.

F: 3 unions wanted to be certified as separate bargaining units
and in response to those petitions, CIR ordered that a
plebiscite via secret ballot be conducted to determine whether
the employees truly desire to be separated from the unit of the
rest of the employees. Kapisanan opposed this Order, saying
that it had already been duly certified to represent the rest of
the employees, and it had already entered into a CBA with the
company.
H: Court held that desire of employees is one of the factors in
determining the appropriate bargaining unit, and as such, a
plebiscite, not another certification election, may rightfully be
conducted.
4. Size of Unit and Effect of Self-Organization
FILOIL REFINERY v. FILOIL SUPERVISORY (1972)
D: Such inclusion fulfills the law's objective of insuring to
them the full benefit of their right to self-organization and to
collective bargaining, which could hardly be accomplished if
the association's membership were to be broken up into five
separate ineffective tiny units.
F: Association which includes supervisory and confidential
employees filed a petition for certification election. Filoil
objected, arguing that supervisors and confidential employees
should not be in the same bargaining unit.
H: SC held that since the confidential employees are very few
in number and are by practice and tradition identified with the
supervisors in their role as representatives of management,
their inclusion is proper
5. CBA Coverage
FARLEY FULACHE v. ABS-CBN (2010)
D: Employees that fall within CBA coverage under the CBA’s
express terms and are entitled to its benefits. CBA coverage is
not only a question of fact, but of law and contract.
F: ABS-CBN excluded petitioners in the CBA agreement.
Petitioners filed a regularization case. The LA found them to
be regular employees. Pending appeal to the NLRC, ABS-CBN
dismissed the petitioners so an illegal dismissal case was
filed.
H: The SC ruled that they were regular employees and are
entitled to the benefits under the CBA. These benefits and
privileges arise from entitlements under the law, their
employment contract as regular employees, part of which is
the CBA if they fall within the coverage of the agreement.
6. Effect of Prior Agreement
GENERAL RUBBER v. BLR (1997)
D: A prior agreement can never bind subsequent federations
and unions if such unions are not privy thereto, or if such
agreement is a curtailment of the right to self-organization
guaranteed by labor
F: The monthly-paid employees of GRFC formed NATUMPE-
NATU and filed a petition for direct certification. GRFC
opposed the petition because of a prior agreement prohibiting
sale.
H: The Court held that the union members are not managerial
UP LAW C2017 LABOR 2 (PROF. DAWAY) MIDTERMS REVIEWER | 40
employees and can create a new bargaining unit. However, to
prevent difficulty, to avoid confusion, etc., the Court opined
that the monthlies may join the daily-paid employees in the
existing union. It has not been shown that NATUMPE-NATU
was privy to the prior agreement.
7. Effect of Including Employees Outside the Bargaining Unit/
Mixture of R&F and Supervisory Employees
LC, Art. 251-A (RA 9481) Effect of Inclusion as Members of
Employees Outside the Bargaining Unit. The inclusion as union
members of employees outside the bargaining unit shall not
be a ground for the cancellation of the registration of the
union. Said employees are automatically deemed removed
from the list of membership of said union.
SAMAHANG MANGGAGAWA SA CHARTER CHEMICAL-SUPER
v. CHARTER CHEMICAL & COATING CORP. (2011)
D: Comingling of rank-and-file and supervisory employees in a
union does not affect its status as a legitimate labor
organization.
F: SMCC-SUPER filed a petition for certification election in
1999. CCCC opposed it on the grounds of failure to certify and
attest to certain documentary requirements, and the
comingling of rank- and-file and supervisory employees.
H: SC ruled in favor of the union. The comingling has no effect
as the status of the union as a legitimate labor organization.
Pursuant to the Kawashima case (which had the same
applicable law with this case), SMCC-SUPER was not divested
of its status as a legitimate labor organization even if some of
its members were supervisory employees.
8. Difference Between the Concept of a Union/ LLO and
Bargaining Unit
STA. LUCIA EAST COMMERCIAL CORP. v. SEC. OF LABOR
(2009)
D: The corporation and the other union cannot, by themselves,
decide whether the union represented an appropriate
bargaining unit.
F: A local union initially applied for certification election but
was denied by the BLR for inappropriateness of the bargaining
unit. It reorganized and re-registered. Meanwhile, the
corporation voluntarily recognized another union as the
bargaining representative and entered into a CBA with it.
H: The voluntary recognition and the ratification of the CBA
are null and void. Voluntary recognition can only be done in
unorganized establishments. The local was a legitimate labor
org at the time of the voluntary recognition.
C. Determining Agency
LC, Art. 232. Bureau of Labor Relations. The Bureau of Labor
Relations and the Labor Relations Divisions in the regional
offices of the Department of Labor, shall have original and
exclusive authority to act, at their own initiative or upon
request 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
workplaces, whether agricultural or non- agricultural, except
those arising from the implementation or interpretation of

collective bargaining agreements which shall be the subject of
grievance procedure and/or voluntary arbitration.
The Bureau shall have fifteen (15) working days to act on labor
cases before it, subject to extension by agreement of the
parties.
LC, Art. 238. Prohibition on certification election. The Bureau
shall not entertain any petition for certification election or any
other action which may disturb the administration of duly
registered existing collective bargaining agreements affecting
the parties except under Articles 253, 253-A and 256 of this
Code.
FILOIL REFINERY CORP. v. FILOIL SUPERVISORY AND
CONFIDENTIAL EMPLOYEES ASSN. (1972) supra p. 40
D: Such inclusion fulfills the law's objective of insuring to
them the full benefit of their right to self-organization and to
collective bargaining, which could hardly be accomplished if
the association's membership were to be broken up into five
separate ineffective tiny units.
VI. UNION REPRESENTATION: . employees in an appropriate collective bargaining unit shall be
ESTABLISHING MAJORITY STATUS . the purpose of collective bargaining. However, an individual
A. Pre-Condition: Employer-Employee Relationship
ALLIED FREE WORKERS UNION v. CIA. MARITIMA (1967)
D: The duty to bargain collectively arises only between the
"employer" and its "employees". Where neither party is an
"employer" nor an "employee" of the other, no such duty would
exist.
F: CM and AFWU entered into a contract where AFWU would
do stevedoring and arrastre services for CM’s boats. AFWU
instituted proceedings to be certified as the sole and exclusive
bargaining agent in the bargaining unit composed of all the
laborers doing the arrastre and stevedoring work for CM
vessels in Iligan, but CM alleged there was no employer-
employee relationship. AFWU charged CM before the IC of
unfair labor practices. CM moved for the contract to be
rescinded.
H: AFWU operated as an independent contractor of CM under
the “cabo” system. Certification election is unnecessary.
B. Labor-Management Council
LC, Art. 261, Par. 2, infra
CIRTEK EMPLOYEES LABOR UNION-FFW v. CIRTEK
ELECTRONICS (2011)
D: LMC should not be used as an avenue for bargaining but for
the purpose of affording workers to participate in policy and
decision-making.
F: Before the Sec. of Labor could rule on the a pending dispute
between the company and the union, the remaining officers
formed a Labor-Management Council (LMC) through which a
MOA was perfected.
H: The agreements embodied in the MOA were not the proper
subject of the LMC deliberation or procedure but of CBA
negotiations and, therefore, deserve little weight.
UP LAW C2017 LABOR 2 (PROF. DAWAY) MIDTERMS REVIEWER | 41
C. Methods of Establishing Majority Status
1. Policy/ Rationale
Promote free trade unionism:
• Through expeditious procedures governing the choice of
an exclusive bargaining agent.
• Non-litigious proceeding which shall be free from the
technicalities of law.
• Free, meaning freedom from interference of the labor
organization, employer and government.
• Employer being a mere bystander.
The purpose of a certification election is the ascertainment of
the wishes of the majority of the employees in the appropriate
bargaining unit. The law grants the right to vote to all bona fide
employees in the bargaining unit, whether they are members of
a labor organization or not. (Reyes v. Trajano)
LC, Art. 261. Exclusive bargaining representation and workers'
participation in policy and decision-making. The labor
organization designated or selected by the majority of the
the exclusive representative of the employees in such unit for
employee or group of employees shall have the right at any
time to present grievances to their employer.
Any provision of law to the contrary notwithstanding, workers
shall have the right, subject to such rules and regulations as
the Secretary of Labor and Employment may promulgate, to
participate in policy and decision-making processes of the
establishment where they are employed insofar as said
processes will directly affect their rights, benefits and welfare.
For this purpose, workers and employers may form labor-
management councils: Provided, That the representatives of
the workers in such labor-management councils shall be
elected by at least the majority of all employees in said
establishment.
LC, Art. 248 (b). A legitimate labor organization shall have the
right: (b) To be certified as the exclusive representative of all
the employees in an appropriate bargaining unit for purposes
of collective bargaining;
Bk. V, Rule VI, SEC. 1. Policy. – It is the policy of the State to
promote free trade unionism through expeditious procedures
governing the choice of an exclusive bargaining agent. The
determination of such exclusive bargaining agent is a non-
litigious proceeding and, as far as practicable, shall be free
from technicalities of law and procedure, provided only that in
every case, the exclusive bargaining agent enjoys the majority
support of all the employees in the bargaining unit.
LC, Art. 217A (b). It is the policy of the State: (b) To promote
free trade unionism as an instrument for the enhancement of
democracy and the promotion of social justice and
development.
Const. Art. XIII, SEC. 3. The State shall afford full protection to
labor, local and overseas, organized and unorganized, and
promote full employment and equality of employment
opportunities for all.
It shall guarantee the rights of all workers to self-organization,
collective bargaining and including the right to strike in

accordance with law. They shall be entitled to security of
tenure, humane conditions of work, and a living wage. They
shall also participate in policy and decision-making processes
affecting their rights and benefits as may be provided by law.
The State shall promote the principle of shared responsibility
between workers and employers and the preferential use of
voluntary modes in settling disputes, including conciliation,
and shall enforce their mutual compliance therewith to foster
industrial peace.
The State shall regulate the relations between workers and
employers, recognizing the right of labor to its just share in the
fruits of production and the right of enterprises to reasonable
returns to investments, and to expansion and growth.
SAMAHANG MANGGAGAWA SA PERMEX v. SEC. OF LABOR
(1998)
D: The employer has no authority to give direct certification to
a union for it is the employees' prerogative to determine
whether they want a union to represent them, and if so, which
one it should be.
F: A certification election was conducted among the
employees of Permex. However, some of the employees
formed SMP, later affiliated with PIILU. The company
recognized SMP-PIILU and entered into a CBA with it. CBA
was ratified by the employees. NFL filed a petition for
certification election which was dismissed by Med-Arbiter but
granted by SOLE. SMP-PIILU moved for reconsideration but
was denied.
H: Permex should not have given voluntary recognition to
SMP-PIILU. The company did not have the power to declare
the union the exclusive bargaining representative of the
workers. By virtue of EO 111, the direct certification previously
allowed under the LC had been discontinued as a method of
selecting the exclusive bargaining agent of the workers. Also,
it is not enough that a union has the support of the majority of
the employees. It is equally important that everyone in the
bargaining unit be given the opportunity to express himself.
Especially in this case where the employees voted No Union
but just 10 months later, supported SMP-PIILU.
REYES v. TRAJANO (1992) supra p. 8
D: The purpose of a certification election is precisely the
ascertainment of the wishes of the majority of the employees
in the appropriate bargaining unit. If the results of the election
should disclose that the majority of the workers do not wish to
be represented by any union, then their wishes must be
respected. The minority employees can do nothing but wait
for another suitable occasion to petition for a certification
election and hope that the results will be different. They may
not and should not be permitted, however, to impose their will
on the majority.
2. Representation Role
• On matters relating to collective bargaining - workers
MUST be represented
• On matters relating to employees’ grievances - individual
employee or group of employees, in their own capacity,
may deal with the employer
• On matters relating to policy and decision-making
processes
UP LAW C2017 LABOR 2 (PROF. DAWAY) MIDTERMS REVIEWER | 42
o Majority of the workers may elect their
representatives to labor-management councils
which may be formed for purposes of polciy
formulation.
o Even though members have the right to present
their grievances to their employers, this does not
imply their right to represent the union to
voluntary arbitration. Without proper authority,
the workers have no right to represent the union.
(J. Tabigue v. International Copra Export Corp.)
LC, Art. 261, supra p. 41
J. TABIGUE v. INTERNATIONAL COPRA EXPORT CORP. (2009)
D: Only disputes involving the union and the company shall be
referred to the grievance machinery or voluntary arbitrators.
F: Petitioners were members of the Union who filed Notice of
Preventive Mediation against Company for violation of the
CBA. Before they could meet, the President of the Union sent a
letter to the Company informing them the petitioners were
never authorized by the board to represent the union.
H: The NCMB validly denied Petitioners voluntary arbitration.
Only disputes involving the union and the company shall be
referred to the grievance machinery or voluntary arbitrators.
While Art 255 provides the right of any employee or group of
employees to, at any time, present grievances to the employer,
this does not imply their right to represent the union to
voluntary arbitration.
3. Voluntary Recognition
Definition: Process by which a legitimate labor organization is
recognized by the employer as the exclusive bargaining
representative or agent in a bargaining unit
Requisites
1. Unorganized establishment (there is no recognized or
certified sole and exclusive bargaining agent)
2. Only one legitimate labor organization
Procedure – see Bk. V, Rule VII, infra p. 43
Effects of recording the fact of voluntary recognition:
a. Recognized labor union shall enjoy the rights,
privileges and obligations of an existing bargaining
b. Bars the filing of a petition for certification election by
any labor organization for a period of 1 year from the
date of entry of voluntary recognition.
• Upon expiration of this one-year period, any LLO may
file a petition for certification election in the same
bargaining unit represented by the voluntarily
recognized union.
o Exception: When a CBA between the
employer and voluntarily recognized labor
union was executed and registered with the
Regional Office.
Art. 248(c). Rights of legitimate labor organizations. A
legitimate labor organization shall have the right: (c.) To be
furnished by the employer, upon written request, with its
annual audited financial statements, including the balance
sheet and the profit and loss statement, within thirty (30)
calendar days from the date of receipt of the request, after the
union has been duly recognized by the employer or certified as

the sole and exclusive bargaining representative of the
employees in the bargaining unit, or within sixty (60) calendar
days before the expiration of the existing collective bargaining
agreement, or during the collective bargaining negotiation;
Bk. V, Rule I, SEC. 1 (bbb). “Voluntary Recognition” refers to
the process by which a legitimate labor union is recognized by
the employer as the exclusive bargaining representative or
agent in a bargaining unit, reported with the Regional Office in
accordance with Rule VII, Section 2 of these Rules.
Bk. V, Rule VI, SEC. 2. Determination of representation status;
modes. - The determination of an exclusive bargaining agent
shall be through voluntary recognition in cases where there is
only one legitimate labor organization operating within the
bargaining unit, or through certification, run-off or consent
election as provided in these Rules.
Bk. V, Rule VII. VOLUNTARY RECOGNITION
SEC. 1. When and where to file. – In unorganized
establishments with only one legitimate labor organization, the
employer may voluntarily recognize the representation status
of such union. Within thirty (30) days from such recognition,
the employer and union shall submit a notice of voluntary
recognition with the Regional Office which issued the
recognized labor union’s certificate of registration or
certificate of creation of a chartered local.
SEC. 2. Requirements for voluntary recognition. – The notice
of voluntary recognition shall be accompanied by the original
copy and two (2) duplicate copies of the following documents:
(a) a joint statement under oath of voluntary recognition
attesting to the fact of voluntary recognition;
(b) certificate of posting of the joint statement of voluntary
recognition for fifteen (15) consecutive days in at least two (2)
conspicuous places in the establishment or bargaining unit
where the union seeks to operate;
(c) the approximate number of employees in the bargaining
unit, accompanied by the names of those who support the
voluntary recognition comprising at least a majority of the
members of the bargaining unit;
(d) a statement that the labor union is the only legitimate labor
organization operating
within the bargaining unit.
All accompanying documents of the notice for voluntary
recognition shall be certified under oath by the employer
representative and president of the recognized labor union.
SEC. 3. Action on the Notice. - Where the notice of voluntary
recognition is sufficient in form, number and substance and
where there is no other registered labor union operating within
the bargaining unit concerned, the Regional Office, through the
Labor Relations Division shall, within ten (10) days from
receipt of the notice, record the fact of voluntary recognition in
its roster of legitimate labor unions and notify the labor union
concerned.
Where the notice of voluntary recognition is insufficient in
form, number and substance, the Regional Office shall, within
the same period, notify the labor union of its findings and
advise it to comply with the necessary requirements. Where
neither the employer nor the labor union failed to complete the
requirements for voluntary recognition under Section 2 of this
Rule within thirty (30) days from receipt of the advisory, the
Regional Office shall return the notice for voluntary recognition
UP LAW C2017 LABOR 2 (PROF. DAWAY) MIDTERMS REVIEWER | 43
together with all its accompanying documents without
prejudice to its re-submission.
SEC. 4. Effect of recording of fact of voluntary recognition -
From the time of recording of voluntary recognition, the
recognized labor union shall enjoy the rights, privileges and
obligations of an existing bargaining agent of all the
employees in the bargaining unit.
Entry of voluntary recognition shall bar the filing of a petition
for certification election by any labor organization for a period
of one (1) year from the date of entry of voluntary recognition.
Upon expiration of this one-year period, any legitimate labor
organization may file a petition for certification election in the
same bargaining unit represented by the voluntarily
recognized union, unless a collective bargaining agreement
between the employer and voluntarily recognized labor union
was executed and registered with the Regional Office in
accordance with Rule XVII of these Rules.
STA. LUCIA EAST COMMERCIAL CORP. v. SECRETARY OF
LABOR (2009) supra p. 40
D: Voluntary recognition can only be done in unorganized
establishments
4. Elections
a. Certification Election
• Process of determining through secret ballot the sole
and exclusive representative of the employees in an
appropriate bargaining unit for purposes of collective
bargaining or negotiation.
• Ordered by the DOLE
• When two labor unions are competing to be the
bargaining representative, the election is the most
democratic method to ascertain the will of the
employees. (Oriental Tin Can Labor Union v. Sec. of
Labor)
• The certification election is not litigation but a mere
investigation of a non-adversary character where the
rules of procedure are not strictly applied. Technical
rules and objections should not hamper the correct
ascertainment of the labor union that has the support
of confidence of the majority of the workers and is
thus entitled to represent them in their dealings with
management. (Port Workers Union v. DOLE)
Art. 262 (as amended by R.A. 9481). Representation Issue in
Organized Establishments. - In organized establishments,
when a verified petition questioning the majority status of the
incumbent bargaining agent is filed by any legitimate labor
organization including a national union or federation which
has already issued a charter certificate to its local chapter
participating in the certification election or a local chapter
which has been issued a charter certificate by the national
union or federation before the Department of Labor and
Employment within the sixty (60)-day period before the
expiration of the collective bargaining agreement, the Med-
Arbiter shall automatically order an election by secret ballot
when the verified petition is supported by the written consent
of at least twenty-five percent (25%) of all the employees in the
bargaining unit to ascertain the will of the employees in the
appropriate bargaining unit. To have a valid election, at least a
majority of all eligible voters in the unit must have cast their
votes. The labor union receiving the majority of the valid votes
cast shall be certified as the exclusive bargaining agent of all

the workers in the unit. When an election which provides for
three or more choices results in no choice receiving a majority
of the valid votes cast, a run-off election shall be conducted
between the labor unions receiving the two highest number of
votes: Provided, That the total number of votes for all
contending unions is at least fifty percent (50%) of the number
of votes cast. In cases where the petition was filed by a
national union or federation, it shall not be required to disclose
the names of the local chapter's officers and members.
At the expiration of the freedom period, the employer shall
continue to recognize the majority status of the incumbent
bargaining agent where no petition for certification election is
filed.
Bk. V, Rule I, SEC. 1
(h) "Certification Election" or "Consent Election" refers to the
process of determining through secret ballot the sole and
exclusive representative of the employees in an appropriate
bargaining unit for purposes of collective bargaining or
negotiation. A certification election is ordered by the
Department, while a consent election is voluntarily agreed
upon by the parties, with or without the intervention by the
Department.
(ll) “Organized Establishment” refers to an enterprise where
there exists a recognized or certified sole and exclusive
bargaining agent.
Bk. V, Rules VIII and IX, - infra pp. 50-54
Bk. V, Rule X, infra pp. 44-45
b. Consent Election
• Definition: Process of determining through secret
ballot the sole and exclusive representative of the
employees in an appropriate bargaining unit for
purposes of collective bargaining or negotiation.
• Voluntarily agreed upon by the parties, with or without
the intervention by the DOLE.
Bk. V, Rule I, SEC. 1 (h), supra
Bk. V, Rule VIII
SEC. 10. Consent Election; Agreement. - In case the
contending unions agree to a consent election, the Med-
Arbiter shall not issue a formal order calling for the conduct of
certification election, but shall enter the fact of the agreement
in the minutes of hearing. The minutes of the hearing shall be
signed by the parties and attested to by the Med-Arbiter. Med-
Arbiter shall, immediately thereafter, forward records of the
petition to the Regional Director or his/her authorized
representative for the determination of the Election Officer by
the contending unions through raffle. The first pre-election
conference shall be scheduled within ten (10) days from the
date of entry of agreement to conduct consent election.
SEC. 11. Number of Hearings; Pleadings. - If the contending
unions fail to agree to a consent election during the
preliminary conference, the Med-Arbiter may conduct as many
hearings as he/she may deem necessary, but in no case shall
the conduct thereof exceed fifteen (15) days from the date of
the scheduled preliminary conference/hearing, after which
time the petition shall be considered submitted for decision.
The Med-Arbiter shall have control of the proceedings.
UP LAW C2017 LABOR 2 (PROF. DAWAY) MIDTERMS REVIEWER | 44
Postponements or continuances shall be discouraged.
Within the same 15-day period within which the petition is
heard, the contending labor unions may file such pleadings as
they may deem necessary for the immediate resolution of the
petition. Extensions of time shall not be entertained. All
motions shall be resolved by the Med-Arbiter in the same
order or decision granting or denying the petition.
SEC. 23. Effects of consent election. - Where a petition for
certification election had been filed, and upon the intercession
of the Med-Arbiter, the parties agree to hold a consent
election, the results thereof shall constitute a bar to the
holding of a certification election for one (1) year from the
holding of such consent election. Where an appeal has been
filed from the results of the consent election, the running of the
one-year period shall be suspended until the decision on
appeal has become final and executory.
Where no petition for certification election was filed but the
parties themselves agreed to hold a consent election with the
intercession of the Regional Office, the results thereof shall
constitute a bar to another petition for certification election.
c. Run-Off Election
• An election between the labor unions receiving the 2
highest number of votes in a certification or consent
election with 3 or more choices, where such a
certified or consent results in none of the 3 or more
choices receiving the majority of the valid votes cast;
provided that the total number of votes for all
contending unions is at least fifty percent (50%) of the
number of votes cast.
Requisites:
1. Election provides for 3 or more choices
2. Results in none of the contending unions (no choice)
receiving a majority of the valid votes cast
3. Total number of votes for all contending unions is at
least 50% of the number of votes cast
4. There are no objections/ challenges which if
sustained can materially alter the results
LC, Art. 262, par. 1, penultimate sentence - When an election
which provides for three or more choices results in no choice
receiving a majority of the valid votes cast, a run-off election
shall be conducted between the labor unions receiving the two
highest number of votes: Provided, That the total number of
votes for all contending unions is at least fifty percent (50%) of
the number of votes cast.
Bk. V, Rule I, SEC. 1 (ss) - "Run-off Election" refers to an
election between the labor unions receiving the two (2) highest
number of votes in a certification or consent election with
three (3) or more choices, where such a certified or consent
results in none of the three (3) or more choices receiving the
majority of the valid votes cast; provided that the total number
of votes for all contending unions is at least fifty percent (50%)
of the number of votes cast.
Bk. V, Rule X. RUN-OFF ELECTIONS
SEC. 1. When proper. - When an election which provides for
three (3) or more choices results in none of the contending
unions receiving a majority of the valid votes cast, and there
are no objections or challenges which if sustained can
materially alter the results, the Election Officer shall motu

proprio conduct a run-off election within ten (10) days from
the close of the election proceedings between the labor unions
receiving the two highest number of votes; provided, that the
total number of votes for all contending unions is at least fifty
(50%) percent of the number of votes cast.
"No Union" shall not be a choice in the run-off election.
Notice of run-off elections shall be posted by the Election
Officer at least five (5) days before the actual date of run-off
election.
SEC. 2. Qualification of voters. - The same voters' list used in
the certification election shall be used in the run-off election.
The ballots in the run-off election shall provide as choices the
unions receiving the highest and second highest number of the
votes cast. The labor union receiving the greater number of
valid votes cast shall be certified as the winner, subject to
Section 20, Rule IX.
5. Venue of Petition
Bk. V, Rule VIII, SEC 2. Where to file. - A petition for
certification election shall be filed with the Regional Office
which issued the petitioning union's certificate of
registration/certificate of creation of chartered local.
The petition shall be heard and resolved by the Med-Arbiter.
Where two or more petitions involving the same bargaining
unit are filed in one Regional Office, the same shall be
automatically consolidated with the Med-Arbiter who first
acquired jurisdiction. Where the petitions are filed in different
Regional Offices, the Regional Office in which the petition was
first filed shall exclude all others; in which case, the latter shall
indorse the petition to the former for consolidation.
Bk. V, Rule VII, SEC. 1. When and where to file. - In
unorganized establishments with only one legitimate labor
organization, the employer may voluntarily recognize the
representation status of such union. Within thirty (30) days
from such recognition, the employer and union shall submit a
notice of voluntary recognition with the Regional Office which
issued the recognized labor union’s certificate of registration
or certificate of creation of a chartered local.
D. Certification Election - Process
Bk. V, Rules VIII and IX, - infra pp. 50-53; Bk. V, Rule X, supra
1. Union as Initiating Party
LC, Art. 248 (b). Rights of legitimate labor organizations. A
legitimate labor organization shall have the right: (b) To be
certified as the exclusive representative of all the employees in
an appropriate bargaining unit for purposes of collective
bargaining;
Bk. V, Rule VIII, SEC. 1. Who may file. infra p. 46
a. Organized Establishment
LC, Art. 262, supra p. 43
LC, Art. 259. Duty to bargain collectively when there exists a
collective bargaining agreement. - When there is a collective
bargaining agreement, the duty to bargain collectively shall
UP LAW C2017 LABOR 2 (PROF. DAWAY) MIDTERMS REVIEWER | 45
also mean that neither party shall terminate nor modify such
agreement during its lifetime. However, either party can serve
a written notice to terminate or modify the agreement at least
sixty (60) days 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 during the 60-day period and/or until a new
agreement is reached by the parties.
LC, Art. 238. supra p. 41
Bk. V, Rule I, Sec. 1 (ll) “Organized Establishment” refers to an
enterprise where there exists a recognized or certified sole and
exclusive bargaining agent.
1) When to File
Bk. V, Rule VIII, SEC. 3. When to file. - A petition for
certification election may be filed anytime, except:
(a) [One Year Bar/ Recognition or Certification Bar Rule] when
a fact of voluntary recognition has been entered or a valid
certification, consent or run-off election has been
conducted within the bargaining unit within one (1) year
prior to the filing of the petition for certification election.
Where an appeal has been filed from the order of the Med-
Arbiter certifying the results of the election, the running of
the one year period shall be suspended until the decision
on the appeal has become final and executory;
(b) [Negotiation Bar Rule] when the duly certified union has
commenced and sustained negotiations in good faith with
the employer in accordance with Article 250 of the Labor
Code within the one year period referred to in the
immediately preceding paragraph;
(c) [Deadlock Bar Rule] when a bargaining deadlock to which
an incumbent or certified bargaining agent is a party had
been submitted to conciliation or arbitration or had
become the subject of a valid notice of strike or lockout;
(d) [Contract Bar Rule] when a collective bargaining
agreement between the employer and a duly recognized or
certified bargaining agent has been registered in
accordance with Article 231 of the Labor Code. Where
such collective bargaining agreement is registered, the
petition may be filed only within sixty (60) days prior to its
expiry.
i) Petition Before Freedom Period
It’s called Freedom Period because any legitimate labor
organization may freely contest the majority status of the
incumbent bargaining agent during this period.
Art. 259, supra
Art. 262, supra p. 43
Bk. V, Rule VIII, SEC. 3(d), supra
Last sentence: "Where such collective bargaining agreement is
registered, the petition may be filed only within sixty (60) days
prior to its expiry."
Bk. V, Rule VIII, SEC. 13, Par. 1. Order/Decision on the petition.
- Within ten (10) days from the date of the last hearing, the
Mediator-Arbiter shall formally issue a ruling granting or
denying the petition, except in organized establishments
where the grant of the petition can only be made after the
lapse of the freedom period.

ATLANTIC GULF AND PACIFIC CO. MANILA INC. v.
LAGUESMA (1992)
D: Existing CBA with the ER and the SEBA bars any other labor
organization from filing a petition for certification election
except within the 60-day period prior to the expiration of the
CBA.
F: Atlantic Gulf has an existing CBA with URFA, the SEBA of all
RAF employees of Atlantic Gulf. Another union, LAKAS-NFL,
filed a PCE with the BLR to be certified as the SEBA of all non-
regular project employees which the DOLE approved. Atlantic
Gulf appealed the approval of the PCE. Subsequently, 691 of
the employees which LAKAS-NFL sought to represent were
regularized. The remaining employees who weren’t
regularized staged a strike. Atlantic Gulf, in a conciliation
proceeding, regularized the remaining employees provided
that they rendered a service of at least one year.
Subsequently, the first set of regularized employees were
admitted to URFA. Atlantic Gulf appealed the decision of the
DOLE, stating that the bargaining unit which LAKAS-NFL
sought to represent ceased to exist following the
regularization of employees.
H: The existence of a duly registered CBA between the Atlantic
Gulf and URFA, which is the sole and exclusive bargaining
representative of all the regular RAF employees of the
petitioner including the regular project employees with more
than one year of service, bars any other labor organization
from filing a petition for certification election except within the
60-day period prior to the expiration of the CBA.
ii) Petition Beyond Freedom Period
NATIONAL CONGRESS OF UNIONS IN THE SUGAR INDUSTRY
v. FERRER-CALLEJA (1992)
D: Petitions filed beyond the freedom period should be
dismissed outright.
F: One year after expiry of the CBA and after NFSW had a
deadlock on the extended CBA with company, NACUSIPTUCP
filed a petition for certificate election. NFSW filed a motion to
dismiss for being filed beyond the freedom period.
H: Having been filed outside the 60day freedom period or a
period of more than one (1) year after the CBA expired, the
petition for certification election should have been dismissed
outright. The purpose, obviously, is to ensure stability in the
relationships of the workers and the management by
preventing frequent modifications of any collective bargaining
agreement earlier entered into by them in good faith and for
the stipulated original period.
2) Filing Party
Who may file?
1. Any legitimate labor organization
• including a national union/ federation that has issued
a charter certificate to the local, or the local itself
2. Employer, when requested to bargain collectively in a
bargaining unit where no registered CBA exists.
Note: Bystander rule, infra p. 48
Bk. V, Rule VIII, SEC. 1. Who may file. - Any legitimate labor
organization, including a national union or federation that has
issued a charter certificate to its local/chaper or the
local/chapter itself, may file a petition for certification election.
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A national union or federation filing a petition in behalf of its
local/chapter shall not be required to disclose the names of
the local/chapter’s officers and members, but shall attach to
the petition the charter certificate it issued to its local/chapter.
When requested to bargain collectively in a bargaining unit
where no registered collective bargaining agreement exists, an
employer may file a petition for certification election with the
Regional Office. If there is no existing registered collective
bargaining agreement in the bargaining unit, the Regional
Office shall, after hearing, order the conduct of a certification
election.
DHL PHIL. CORP. UNITED RAF ASSOCIATION-FFW v. BUKLOD
NG MANGGAGAWA (2004)
D: A certification election may be set aside for misstatements
made during the campaign where: 1) a material fact has been
misrepresented in the campaign; 2) an opportunity for reply
has been lacking; and 3) the misrepresentation has had an
impact on the free choice of the employees participating in the
election.
F: Officers of petitioner allegedly misrepresented that it is an
independent union prior to the certification election.
H: The fact that the officers of petitioner especially its
president, misrepresented it to the voting employees as an
independent union constituted a substantial
misrepresentation of material facts of vital concern to those
employees.
3) Form of Petition
• in writing
• verified under oath
o by president of filing LO
o by president/ authorized representative of
filing national union/ federation
o owner/president/authorized officer of ER
Bk. V, Rule VIII, SEC. 4. Form and contents of petition. - The
petition shall be in writing, verified under oath by the president
of petitioning labor organization. Where a federation or
national union files a petition in behalf of its local or affiliate,
the petition shall be verified under oath by the president or its
duly authorized representative of the federation or national
union. In case the employer files the petition, the owner,
president or any corporate officer, who is authorized by the
Board of Directors, shall verify the petition. The petition shall
contain the following:
a) the name of petitioner, its address, and affiliation if
appropriate, the date and number of its certificate of
registration. If the petition is filed by a federation or
national union, the national president or his/her duly
authorized representative shall certify under oath as to the
existence of its local/chapter in the establishment and
attaching thereto the charter certificate or a certified true
copy thereof. If the petition is filed by a local/chapter, it
shall attach its charter certificate or a certified true copy
thereof;
b) the name, address and nature of employer's business;
c) the description of the bargaining unit;
d) the approximate number of employees in the bargaining
unit;
e) the names and addresses of other legitimate labor unions
in the bargaining unit;
f) a statement indicating any of the following

circumstances:
(1) that the bargaining unit is unorganized or that there is
no registered collective bargaining agreement covering the
employees in the bargaining unit;
(2) if there exists a duly registered collective bargaining
agreement, that the petition is filed within the sixty-day
freedom period of such agreement; or
(3) if another union had been previously recognized
voluntarily or certified in a valid certification, consent or
run-off election, that the petition is filed outside the one-
year period from date of recording of such voluntary
recognition or conduct of certification or run-off election
and no appeal is pending thereon.
g) in an organized establishment, the signature of at least
twenty-five percent (25%) of all employees in the
appropriate bargaining unit shall be attached to the
petition at the time of its filing; and
h) other relevant facts.
NATIONAL MINES AND ALLIED WORKERS UNION v. SEC. OF
LABOR (1993)
D: Technical rules of procedure are generally not binding in
labor cases especially in certification elections, which are
non-litigious but merely investigative and non-adversarial in
character.
F: 38 days before expiration of CBA, FFW-SMQCC filed a
petition for certification election which was opposed by
NAMAWU on the ground that the required consent of 25% was
not met, petition wasn’t verified, and that De Pedro had no
personality to file the petition.
H: Although De Pedro was president of NAMAWU, he had
already disaffiliated with it and joined FFW. Verifcation is a
formal, not jurisdictional requirement which defect will nullify
petition. Technical rules of procedure are generally not
binding in labor cases especially in certification elections,
which are non-litigous but merely investigative and non-
adversarial in character. Removing the 49 allegedly
falsified/disowned signatures supporting the petition, there
were still a total of 92 employees, out of 300 sought to be
represented. Hence, 25% requirement was still met. On the
issue of its being “undated”, what’s important is that it was
filed during the freedom period and the 25% was met.
4) Substantial Support/ Simultaneous Submission (directory)
• Not found in Art. 262, so at best, it should be given
only a directory effect. [Port Workers Union v. DOLE]
LC, Art. 262, supra p. 43
Bk. V, Rule VIII, Sec. 4(g), supra
Bk. V, Rule VIII, Sec. 14(e). Denial of the petition; Grounds. -
The Mediator-Arbiter may dismiss the petition on any of the
following grounds: (e) Where a duly certified union has
commenced and sustained negotiations with the employer in
accordance with Article 250 of the Labor Code within the one-
year period referred to in Section 14.d of this Rule, in case of
an organized establishment, or where there exists a bargaining
deadlock which has been submitted to conciliation or
arbitration failure of has become the subject of a valid notice
of strike or lockout where an incumbent or certified bargaining
agent is a party
1997 Impl. Rules - Rule XI, SEC. 11, ll (e). Action on the
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petition. - II. The Med-Arbiter shall dismiss the petition on any
of the following grounds: (e) In case of an organized
establishment, failure to submit the twenty-five percent (25%)
support requirement upon the filing of the petition;
ORIENTAL TIN CAN LABOR UNION v. SEC OF LABOR (1998)
D: Once the required percentage requirement has been
reached, employees’ withdrawal from union membership after
the filing of the petition for certification election will not affect
the petition.
F: OCTWU-FFW filed a petition for certification election
accompanied by the “authentic signatures” of 25% of the
employees/workers in the bargaining unit. OCTLU opposed
because some of the employees who initially signed the
petition had allegedly withdrawn in writing such support prior
to the filing.
H: 25% requirement under Art. 256 (now 262) was met. The
requirement is a mere technicality and the withdrawal from
union membership after the filing will not affect the petition.
PORT WORKERS UNION v. DOLE (1992)
D: The administrative rule requiring the simultaneous
submission of the 25% consent signatures upon filing of
petition for certification election should not be strictly applied
to frustrate the determination of the legitimate representative
of the workers. Mere filing of a petition for certification
election within freedom period is sufficient basis for the
issuance of an order for the holding of a certification election,
subject to submission of the consent signatures within a
reasonable period from filing.
F: SAMADA submitted consent signatures (25%) 11 days after
filing petition for certification election. PEALU submitted
consent signatures 35 days after filing petition.
H: Dismissal of petition for non-compliance with 25% consent
signatures was incorrect.
5) Effect of Members’ Retraction on Petition
EAGLE RIDGE GOLF AND COUNTRY CLUB v. CA (2010)
D: Withdrawal after filing PCE is deemed involuntary and does
not affect the cert. elec. Withdrawal of union membership
does not affect union registration.
F: Eagle Ridge Employees organized a union then filed a
petition for certification election after registering with DOLE.
Eagle Ridge alleged that there was fraud wrt the number of
members, because 6 employees expressed desire to withdraw
from the union. Without them, union does not fulfill 20%
requirement under Art 234(c).
H: Withdrawal of six member­employees from the Union
affects neither Union’s registration nor its petition for
certification election, as their affidavits of retraction were
executed after the Union’s petition for certification election
had been filed.
6) Forced Intervention/Motion for Intervention
Book V, Rule VIII
Section 7. Forced Intervenor. - The incumbent bargaining
agent shall automatically be one of the choices in the
certification election as forced intervenor.

Section 8. Motion for Intervention. - When a petition for
certification election was filed in an organized establishment,
any legitimate labor union other than the incumbent
bargaining agent operating within the bargaining unit may file
a motion for intervention with the Med-Arbiter during the
freedom period of the collective bargaining agreement. The
form and contents of the motion shall be the same as that of a
petition for certification election.
In an unorganized establishment, the motion shall be filed at
any time prior to the decision of the Med-Arbiter. The form and
contents of the motion shall likewise be the same as that of a
petition for certification election. The motion for intervention
shall be resolved in the same decision issued in the petition for
certification election.
PHIL ASSN OF FREE LABOR UNION v. CALLEJA (1989)
D: The 20% requirement is peculiar to petitions for certification
election.
F: Samahan filed a petition for certification election. PAFLU
filed a motion to intervene, accompanied by a written consent
of 20% of the R&F employees of HICC. KAMAPI likewise filed
its motion to intervene, but unaccompanied by a similar
written consent.
H: Requisite written consent does not apply to motion for
intervention. KAMAPI was allowed to participate in the
certification election.
b. Unorganized Establishment
LC, Art. 248, supra p. 22
LC, Art. 263. Petitions in unorganized establishments. In any
establishment where there is no certified bargaining agent, a
certification election shall automatically be conducted by the
Med-Arbiter upon the filing of a petition by a legitimate labor
organization.
LC, Art. 264. When an employer may file petition. When
requested to bargain collectively, an employer may petition the
Bureau for an election. If there is no existing certified collective
bargaining agreement in the unit, the Bureau shall, after
hearing, order a certification election.
All certification cases shall be decided within twenty (20)
working days.
The Bureau shall conduct a certification election within twenty
(20) days in accordance with the rules and regulations
prescribed by the Secretary of Labor.
Book V, Rule I
Sec 1 (ll). “Organized Establishment” refers to an enterprise
where there exists a recognized or certified sole and exclusive
bargaining agent.
2. The Employer as Initiating Party/Bystander Rule
ER's participation in cert. election proceedings limited to:
1. being notified or informed of petitions
2. submitting the list of EEs during pre-election conference
LC, Art. 264, supra
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Art. 264-A. Employer as Bystander. – In all cases, whether the
petition for certification election is filed by an employer or a
legitimate labor organization, the employer shall not be
considered a party thereto with a concomitant right to oppose
the petition for certification election. The employer’s
participation in such proceedings shall be limited to: 1) being
notified or informed of petitions of such nature; and 2)
submitting the list of employees during the pre-election
conference should be the Med-Arbiter act favorably on the
petition (As amended by Rep. Act 9481)
Book V, Rule VIII Sec 1. (par 2) A national union or federation
filing a petition in behalf of it local/chapter shall not be
required to diclose the names of the local/chapter’s officers
and members, but shall attach to the petition the charter
certificate it issued to its local/chapter.
HERCULES INDUSTRIES INC v. SEC OF LABOR (1992)
D: Employer is not a party to a certification election, which is
the sole/exclusive concern of the workers. In the choice of
their collective bargaining representative, the employer is an
intruder. Only instance it may be involved: obliged to file a
petition for certification election in behalf of workers.
F: Following a certification election, Hercules Industries, Inc.,
filed an appeal alleging several procedural infirmities in the
conduct of said certification election.
H: Employer is not allowed to question validity of certification
election of R&F employees.
PHIL SCOUTS ETC v. TORRES (1993)
D: Employer’s role in a certification election is that of a mere
bystander. It has no legal standing in a certification election
as it cannot oppose the petition or appeal the MedArbiter's
orders related thereto.
F: Labor Union filed a petition for Certification Election among
the employees of three security agencies that they collectively
called PGA. The agencies allege that they are three separate
and distinct entities.
H: They are in a single business entity so no need to file 3
separate petitions. Except where employer has to file a
petition for certification election because of a request to
bargain collectively, it has nothing to do with a certification
election, which is the sole concern of the workers.
3. Grounds for Denial of the Petition
The Med-Arbiter may dismiss on the ff. grounds:
1. Petitioner not listed in the registry, or legal personality has
been revoked/cancelled
2. Contract bar rule
3. One year bar/ recognition or certification bar rule
4. Negotiation bar rule
5. Failure to submit 25% support requirement
Book V, Rule VIII
Section 14. Denial of the petition; Grounds. - The Med-Arbiter
may dismiss the petition on any of the following grounds:
(a) the petitioner is not listed in the Department's registry of
legitimate labor unions or that its legal personality has been
revoked or cancelled with finality in accordance with Rule XIV
of these Rules;

(b) the petition was filed before or after the freedom period of a
duly registered collective bargaining agreement; provided that
the sixty-day period based on the original collective bargaining
agreement shall not be affected by any amendment, extension
or renewal of the collective bargaining agreement;
(c) the petition was filed within one (1) year from entry of
voluntary recognition or a valid certification, consent or run-off
election and no appeal on the results of the certification,
consent or run-off election is pending;
(d) a duly certified union has commenced and sustained
negotiations with the employer in accordance with Article 250
of the Labor Code within the one-year period referred to in
Section 14.c of this Rule, or there exists a bargaining deadlock
which had been submitted to conciliation or arbitration or had
become the subject of a valid notice of strike or lockout to
which an incumbent or certified bargaining agent is a party;
(e) in case of an organized establishment, failure to submit the
twenty-five percent (25%) support requirement for the filing of
the petition for certification election.
4. Prohibited Grounds for Denial
Book V, Rule VIII
Section 15. Prohibited grounds for the denial/suspension of
the petition. - All issues pertaining to the existence of
employer-employee relationship, eligibility or mixture in union
membership raised before the Med-Arbiter during the
hearing(s) and in the pleadings shall be resolved in the same
order or decision granting or denying the petition for
certification election. Any question pertaining to the validity of
petitioning union's certificate of registration or its legal
personality as a labor organization, validity of registration and
execution of collective bargaining agreements shall be heard
and resolved by the Regional Director in an independent
petition for cancellation of its registration and not by the Med-
Arbiter in the petition for certification election, unless the
petitioning union is not found in the Department's roster of
legitimate labor organizations or an existing collective
bargaining agreement is unregistered with the Department.
5. Responsible Agency
LC, Art. 232, supra p. 40
LC, Art. 238, supra p. 41
LC, Art. 262, supra p. 43
LC, Art. 263, supra p. 48
LC, Art. 265. Appeal from certification election orders. Any
party to an election may appeal the order or results of the
election as determined by the Med-Arbiter directly to the
Secretary of Labor and Employment on the ground that the
rules and regulations or parts thereof established by the
Secretary of Labor and Employment for the conduct of the
election have been violated. Such appeal shall be decided
within fifteen (15) calendar days. (As amended by Section 25,
Republic Act No. 6715, March 21, 1989).
Book V, Rule VIII
Section 13. Order/Decision on the petition. - Within ten (10)
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days from the date of the last hearing, the Med-Arbiter shall
issue a formal order granting the petition or a decision denying
the same. In organized establishments, however, no order or
decision shall be issued by the Med-Arbiter during the freedom
period.
The order granting the conduct of a certification election shall
state the following:
(a) the name of the employer or establishment;
(b) the description of the bargaining unit;
(c) a statement that none of the grounds for dismissal
enumerated in the succeeding paragraph exists;
(d) the names of contending labor unions which shall appear
as follows: petitioner union/s in the order in which their
petitions were filed, forced intervenor, and no union; and
(e) a directive upon the employer and the contending union(s)
to submit within ten (10) days from receipt of the order,
the certified list of employees in the bargaining unit, or
where necessary, the payrolls covering the members of
the bargaining unit for the last three (3) months prior to
the issuance of the order.
Section 14, supra p. 48
Section 15, supra
6. Requisites for Validity of Election/Failure of Election
LC, Art. 262, supra p. 43
Book V, Rule I
Sec 1, (q) "Mobilization fee" means the amount charged by a
licensee or authority holder from its foreign employer-
principal/partner to cover costs of recruitment, processing and
documentation of its recruits for overseas employment.
Rule IX
Section 17. Failure of election. - Where the number of votes
cast in a certification or consent election is less than the
majority of the number of eligible voters and there are no
material challenged votes, the Election Officer shall declare a
failure of election in the minutes of the election proceedings.
Section 18. Effect of failure of election. - A failure of election
shall not bar the filing of a motion for the immediate holding of
another certification or consent election within six (6) months
from date of declaration of failure of election.
Section 19. Action on the motion. - Within twenty-four (24)
hours from receipt of the motion, the Election Officer shall
immediately schedule the conduct of another certification or
consent election within fifteen (15) days from receipt of the
motion and cause the posting of the notice of certification
election at least ten (10) days prior to the scheduled date of
election in two (2) most conspicuous places in the
establishment. The same guidelines and list of voters shall be
used in the election
BENGUET ELECTRIC COOP INC v. CALLEJA (1989)
D: The right to collective bargaining is not available to an
employee of a cooperative who, at the same time, is a member
and co-owner thereof.
F: A certification election was won by BELU. BENECO
contends that the employees who voted were
members/owners of the cooperative – thus, the certification
election was null and void for allowing non-qualified

employees to vote.
H: upheld BENECO’s claim and declared that the certification
election was void.
a. Double Majority Rule
1. Majority of the bargaining unit must have voted; AND
2. The winning union must have garnered majority of the
valid votes cast.
NUWHRAI-MANILA PAVILION HOTEL CHAPTER
v. SEC OF LABOR (2009)
D: Double majority rule – For a valid cert elec, majority of the
bargaining unit must have voted AND winning union must
have garnered majority of the valid votes cast.
F: A certification election was conducted among the R&F
employees of Holiday Inn Manila Pavilion Hotel. Out of the 353
employees in the voters list, NUWHRAIN received 151 while
HIMPHLU garnered 169. NUWHRAIN filed a petition praying
for the opening of the segregated ballots and that HIMPHLU
not be declared as the sole and bargaining unit.
H: Only those votes cast by probationary employees should be
opened while declaring that a run-off election is in order since
HIMPHLU did not obtain the required majority vote.
7. Nature of Proceeding
PORT WORKERS UNION v. DOLE (1992) supra p. 48
D: The certification election is not litigation but a mere
investigation of a non-adversary character where the rules of
procedure are not strictly applied.
8. Certification Election – Process and Procedure
Book V, Rule VIII: CERTIFICATION ELECTION
Section 1. Who may file. - supra p. 46
Section 2. Where to file; Section 3. When to file. - supra p. 45
Section 4. Form and contents of petition. - supra p. 47
Section 5. Raffle of the case. - Upon the filing of the petition,
the Regional Director or any of his/her authorized
representative shall allow the party filing the petition to
personally determine the Med-Arbiter assigned to the case by
means of a raffle. Where there is only one Med-Arbiter in the
region, the raffle shall be dispensed with and the petition shall
be assigned to him/her.
Section 6. Notice of preliminary conference. - Immediately
after the raffle of the case or receipt of the petition, the same
shall be transmitted to the Med-Arbiter, who shall in the same
instance prepare and serve upon the petitioning party a notice
for preliminary conference. The first preliminary conference
shall be scheduled within ten (10) days from receipt of the
petition.
Within three (3) days from receipt of the petition, the Med-
Arbiter shall cause the service of notice for preliminary
conference upon the employer and incumbent bargaining
agent in the subject bargaining unit directing them to appear
before him/her on a date, time and place specified. A copy of
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the notice of preliminary conference and petition for
certification election shall be posted in at least two
conspicuous places in the establishment.
Sections 7-8, supra pp. 47-48
Section 9. Preliminary Conference; Hearing. - The Med-Arbiter
shall conduct a preliminary conference and hearing within ten
(10) days from receipt of the petition to determine the
following:
(a) the bargaining unit to be represented;
(b) contending labor unions;
(c) possibility of a consent election;
(d) existence of any of the bars to certification election under
Section 3 of this Rule; and
(e) such other matters as may be relevant for the final
disposition of the case.
Section 10. Consent Election; Agreement. - In case the
contending unions agree to a consent election, the Med-
Arbiter shall not issue a formal order calling for the conduct of
certification election, but shall enter the fact of the agreement
in the minutes of the hearing. The minutes of the hearing shall
be signed by the parties and attested to by the Med-Arbiter.
The Med-Arbiter shall, immediately thereafter, forward the
records of the petition to the Regional Director or his/her
authorized representative for the determination of the Election
Officer by the contending unions through raffle. The first pre-
election conference shall be scheduled within ten (10) days
from the date of entry of agreement to conduct consent
election.
Section 11. Number of Hearings; Pleadings. - If the contending
unions fail to agree to a consent election during the
preliminary conference, the Med-Arbiter may conduct as many
hearings as he/she may deem necessary, but in no case shall
the conduct thereof exceed fifteen (15) days from the date of
the scheduled preliminary conference/ hearing, after which
time the petition shall be considered submitted for decision.
The Med-Arbiter shall have control of the proceedings.
Postponements or continuances shall be discouraged.
Within the same 15-day period within which the petition is
heard, the contending labor unions may file such pleadings as
they may deem necessary for the immediate resolution of the
petition. Extensions of time shall not be entertained. All
motions shall be resolved by the Med-Arbiter in the same
order or decision granting or denying the petition.
Section 12. Failure to appear despite notice. - The failure of
any party to appear in the hearing(s) when notified or to file its
pleadings shall be deemed a waiver of its right to be heard.
The Med-Arbiter, however, when agreed upon by the parties for
meritorious reasons may allow the cancellation of scheduled
hearing(s). The cancellation of any scheduled hearing(s) shall
not be used as a basis for extending the 15-day period within
which to terminate the same.
Sections 13-15, supra p. 49
Section 16. Release of Order/Decision within ten (10) days
from the last hearing - The Med-Arbiter shall release his/her
order or decision granting or denying the petition personally to
the parties on an agreed date and time.
Section 17. Appeal. - The order granting the conduct of a

certification election in an unorganized establishment shall not
be subject to appeal. Any issue arising therefrom may be
raised by means of protest on the conduct and results of the
certification election.
The order granting the conduct of a certification election in an
organized establishment and the decision dismissing or
denying the petition, whether in an organized or unorganized
establishment, may be appealed to the Office of the Secretary
within ten (10) days from receipt thereof.
The appeal shall be verified under oath and shall consist of a
memorandum of appeal, specifically stating the grounds relied
upon by the appellant with the supporting arguments and
evidence.
Section 18. Where to file appeal. - The memorandum of appeal
shall be filed in the Regional Office where the petition
originated, copy furnished the contending unions and the
employer, as the case may be. Within twenty-four (24) hours
from receipt of the appeal, the Regional Director shall cause
the transmittal thereof together with the entire records of the
case to the Office of the Secretary.
Section 19. Finality of Order/Decision. - Where no appeal is
filed within the ten-day period, the Med-Arbiter shall enter the
finality of the order/decision in the records of the case and
cause the transmittal of the records of the petition to the
Regional Director.
Section 20. Period to Reply. - A reply to the appeal may be
filed by any party to the petition within ten (10) days from
receipt of the memorandum of appeal. The reply shall be filed
directly with the Office of the Secretary.
Section 21. Decision of the Secretary. - The Secretary shall
have fifteen (15) days from receipt of the entire records of the
petition within which to decide the appeal. The filing of the
memorandum of appeal from the order or decision of the Med-
Arbiter stays the holding of any certification election.
The decision of the Secretary shall become final and executory
after ten (10) days from receipt thereof by the parties. No
motion for reconsideration of the decision shall be entertained.
Section 22. Transmittal of records to the Regional Office. -
Within forty-eight (48) hours from notice of receipt of decision
by the parties and finality of the decision, the entire records of
the case shall be remanded to the Regional Office of origin for
implementation. Implementation of the decision shall not be
stayed unless restrained by the appropriate court.
Section 23. Effects of consent election. - Where a petition for
certification election had been filed, and upon the intercession
of the Med-Arbiter, the parties agree to hold a consent
election, the results thereof shall constitute a bar to the
holding of a certification election for one (1) year from the
holding of such consent election. Where an appeal has been
filed from the results of the consent election, the running of the
one-year period shall be suspended until the decision on
appeal has become final and executory.
Where no petition for certification election was filed but the
parties themselves agreed to hold a consent election with the
intercession of the Regional Office, the results thereof shall
constitute a bar to another petition for certification election.
UP LAW C2017 LABOR 2 (PROF. DAWAY) MIDTERMS REVIEWER | 51
Section 24. Effects of early agreements. - The representation
case shall not be adversely affected by a collective bargaining
agreement registered before or during the last sixty (60) days
of a subsisting agreement or during the pendency of the
representation case.
Section 25. Non-availability of Med-Arbiter. - Where there is
no Med-Arbiter available in the Regional Office by reason of
vacancy, prolonged absence, or excessive workload as
determined by the Regional Director, he/she shall transmit the
entire records of the case to the Bureau, which shall within
forty-eight (48) hours from receipt assign the case to any
Med-Arbiter from any of the Regional Offices or from the
Bureau.
Book V, Rule IX: CONDUCT OF CERTIFICATION ELECTION
Section 1. Raffle of the case. - Within twenty-four (24) hours
from receipt of the notice of entry of final judgment granting
the conduct of a certification election, the Regional Director
shall cause the raffle of the case to an Election Officer who
shall have control of the pre-election conference and election
proceedings.
Section 2. Pre-election conference. - Within twenty-four (24)
hours from receipt of the assignment for the conduct of a
certification election, the Election Officer shall cause the
issuance of notice of pre-election conference upon the
contending unions and the employer, which shall be scheduled
within ten (10) days from receipt of the assignment.
The pre-election conference shall set the mechanics for the
election and shall determine, among others, the following:
a. date, time and place of the election, which shall not be
later than forty-five (45) days from the date of the first
pre-election conference, and shall be on a regular working
day and within the employer's premises, unless
circumstances require otherwise;
b. list of eligible and challenged voters;
c. number and location of polling places or booths and the
number of ballots to be prepared with appropriate
translations, if necessary;
d. name of watchers or representatives and their alternates
for each of the parties during election;
e. mechanics and guidelines of the election.
Section 3. Waiver of right to be heard. - Failure of any party to
appear during the pre-election conference despite notice shall
be considered as a waiver to be present and to question or
object to any of the agreements reached in said pre-election
conference. Nothing herein, however, shall deprive the non-
appearing party or the employer of its right to be furnished
notices of subsequent pre-election conferences and to attend
the same.
Section 4. Minutes of pre-election conference. - The Election
Officer shall keep the minutes of matters raised and agreed
upon during the pre-election conference. The parties shall
acknowledge the completeness and correctness of the entries
in the minutes by affixing their signatures thereon. Where any
of the parties refuse to sign the minutes, the Election Officer
shall note such fact in the minutes, including the reason for
refusal to sign the same. In all cases, the parties shall be
furnished a copy of the minutes.
The pre-election conference shall be completed within thirty
(30) days from the date of the first hearing.

Section 5. Qualification of voters; inclusion-exclusion. - All
employees who are members of the appropriate bargaining
unit sought to be represented by the petitioner at the time of
the issuance of the order granting the conduct of a
certification election shall be eligible to vote. An employee who
has been dismissed from work but has contested the legality
of the dismissal in a forum of appropriate jurisdiction at the
time of the issuance of the order for the conduct of a
certification election shall be considered a qualified voter,
unless his/her dismissal was declared valid in a final judgment
at the time of the conduct of the certification election.
In case of disagreement over the voters' list or over the
eligibility of voters, all contested voters shall be allowed to
vote. But their votes shall be segregated and sealed in
individual envelopes in accordance with Sections 10 and 11 of
this Rule.
Section 6. Posting of Notices. - The Election Officer shall
cause the posting of notice of election at least ten (10) days
before the actual date of the election in two (2) most
conspicuous places in the company premises. The notice shall
contain:
(a) the date and time of the election;
(b) names of all contending unions;
(c) the description of the bargaining unit and the list of eligible
and challenged voters.
The posting of the notice of election, the information required
to be included therein and the duration of posting cannot be
waived by the contending unions or the employer.
Section 7. Secrecy and sanctity of the ballot. - To ensure
secrecy of the ballot, the Election Officer, together with the
authorized representatives of the contending unions and the
employer, shall before the start of the actual voting, inspect
the polling place, the ballot boxes and the polling booths.
Section 8. Preparation of ballots. - The Election Officer shall
prepare the ballots in English and Filipino or the local dialect,
corresponding to the number of voters and a reasonable
number of extra ballots. All ballots shall be signed at the back
by the Election Officer and authorized representative of each of
the contending unions and employer. Failure or refusal to sign
the ballots shall be considered a waiver thereof and the
Election Officer shall enter the fact of such refusal or failure in
the records of the case as well as the reason for the refusal or
failure to sign.
Section 9. Marking of votes. - The voter must put a cross ( x )
or check (✓) mark in the square opposite the name of the
union of his choice or "No Union" if he/she does not want to be
represented by any union
If a ballot is torn, defaced or left unfilled in such a manner as to
create doubt or confusion or to identify the voter, it shall be
considered spoiled. If the voter inadvertently spoils a ballot,
he/she shall return it to the Election Officer who shall destroy it
and give him/her another ballot.
Section 10. Challenging of votes. - An authorized
representative of any of the contending unions and employer
may challenge a vote before it is deposited in the ballot box
only on any of the following grounds:
(e) that there is no employer-employee relationship between
UP LAW C2017 LABOR 2 (PROF. DAWAY) MIDTERMS REVIEWER | 52
the voter and the company;
(f) that the voter is not a member of the appropriate
bargaining unit which petitioner seeks to represent.
Section 11. Procedure in the challenge of votes. - When a vote
is properly challenged, the Election Officer shall place the
ballot in an envelope which shall be sealed in the presence of
the voter and the representatives of the contending unions and
employer. The Election Officer shall indicate on the envelope
the voter's name, the union or employer challenging the voter,
and the ground for the challenge. The sealed envelope shall
then be signed by the Election Officer and the representatives
of the contending unions and employer. The Election Officer
shall note all challenges in the minutes of the election and
shall be responsible for consolidating all envelopes containing
the challenged votes. The envelopes shall be opened and the
question of eligibility shall be passed upon only if the number
of segregated voters will materially alter the results of the
election.
Section 12. On-the-spot questions. - The Election Officer shall
rule on any question relating to and raised during the conduct
of the election. In no case, however, shall the election officer
rule on any of the grounds for challenge specified in the
immediately preceding section.
Section 13. Protest; when perfected. - Any party-in-interest
may file a protest based on the conduct or mechanics of the
election. Such protests shall be recorded in the minutes of the
election proceedings. Protests not so raised are deemed
waived.
The protesting party must formalize its protest with the Med-
Arbiter, with specific grounds, arguments and evidence, within
five (5) days after the close of the election proceedings. If not
recorded in the minutes and formalized within the prescribed
period, the protest shall be deemed dropped.
Section 14. Canvassing of votes. - The votes shall be counted
and tabulated by the Election Officer in the presence of the
representatives of the contending unions. Upon completion of
the canvass, the Election Officer shall give each representative
a copy of the minutes of the election proceedings and results
of the election. The ballots and the tally sheets shall be sealed
in an envelope and signed by the Election Officer and the
representatives of the contending unions and transmitted to
the Med-Arbiter, together with the minutes and results of the
election, within twenty-four (24) hours from the completion of
the canvass.
Where the election is conducted in more than one region,
consolidation of results shall be made within fifteen (15) days
from the conduct thereof.
Section 15. Conduct of election and canvass of votes. - The
election precincts shall open and close on the date and time
agreed upon during the pre-election conference. The opening
and canvass shall proceed immediately after the precincts
have closed. Failure of any party or the employer or
his/her/their representative to appear during the election
proceedings shall be considered a waiver to be present and to
question the conduct thereof.
Section 16. Certification of Collective Bargaining Agent. - The
union which obtained a majority of the valid votes cast shall be
certified as the sole and exclusive bargaining agent of all the

employees in the appropriate bargaining unit within five (5)
days from the day of the election, provided no protest is
recorded in the minutes of the election.
Sections 17-19, supra p. 49
Section 20. Proclamation and certification of the result of the
election. - Within twenty-four (24) hours from final canvass of
votes, there being a valid election, the Election Officer shall
transmit the records of the case to the Med-Arbiter who shall,
within the same period from receipt of the minutes and results
of election, issue an order proclaiming the results of the
election and certifying the union which obtained a majority of
the valid votes cast as the sole and exclusive bargaining agent
in the subject bargaining unit, under any of the following
conditions:
(a) no protest was filed or, even if one was filed, the same was
not perfected within the five-day period for perfection of the
protest;
(b) no challenge or eligibility issue was raised or, even if one
was raised, the resolution of the same will not materially
change the results of the elections.
The winning union shall have the rights, privileges and
obligations of a duly certified collective bargaining agent from
the time the certification is issued.
Where majority of the valid votes cast results in "No Union"
obtaining the majority, the Med-Arbiter shall declare such fact
in the order.
a. Effect of Private Agreement
Any agreement which impairs the freedom of the workers to
voice out their choice of the union to represent them shall not
be upheld. (PLUM Federation v. Noriel)
PLUM FEDERATION OF INDUSTRIAL AND AGRARIAN
WORKERS v. NORIEL (1982)
D: In case of doubt as to the required number having met,
there would be no better way to ascertain which union really
commands the allegiance of the R&F workers than the holding
of a certification election.
F: PLUM Federation and PTGWO are members of the Trade
Union Congress of the Philippines. PLUM filed for cert elec for
R&F employees of the Manila Jockey Club Inc. PTGWO
intervened, alleging a violation the “No Union Raiding Clause”
of the TUCP Code of Ethics and PLUM’s failure to meet the
minimum number of required R&F workers.
H: Ordered certification election, saying that a certification
election is the fairest and most effective way of determining
which labor organization can truly represent the working
force.
UP LAW C2017 LABOR 2 (PROF. DAWAY) MIDTERMS REVIEWER | 53
b. Posting Notice
When? At least 10 days before date of election
Where? 2 most conspicuous places in company premises
What? (a) the date and time of the election;
(b) names of all contending unions;
(c) the description of the bargaining unit and the
list of eligible and challenged voter
The posting of the notice of election, the information required
to be included therein and the duration of posting CANNOT BE
WAIVED by the contending unions or the employer.
Book V, Rule 1, Sec 1 (o) "Election Officer” refers to an officer
of the Bureau or Labor Relations Division in the Regional Office
authorized to conduct certification elections, election of union
officers and other forms of elections and referenda in
accordance with Rule XII, Sec 2-5 of these Rules.
Book V, Rule IX, Sec 6, supra p. 52
JISSCOR INDEPENDENT UNION v. TORRES (1993)
D: Waiver of posting notice covered by doctrine of estoppel.
F: Two unions and management entered into an agreement
setting the date and time of the certification election and
waiving the mandatory 5-day posting requirement. After the
election, the losing union filed a protest citing, among others,
the lack of posting.
H: Losing union estopped from raising the issue because 1) it
was not indicated in the minutes, and 2) it entered into the
agreement.
c. Voter’s List
Employees who are members of the
appropriate bargaining unit sought to be
ELIGIBLE represented by the petitioner at the time of the
issuance of the order granting the conduct of a
certification election.
An employee who has been dismissed from
work but has contested the legality of the
dismissal at the time of the issuance of the
order for the conduct of a certification election,
unless his/her dismissal was declared valid in
a final judgment at the time of the conduct of
QUALIFIED
the certification election.
- Employees illegally dismissed are still eligible
to vote until either the motion to declare their
employment status legally terminates or the
compliant for illegal dismissal is resolved by
the NLRC. (R. Transport Corp. v. Laguesma)
One whose votes are being challenged on the
following grounds:
(a) that there is no ER-EE relationship between
the voter and the company.
(b) that the voter is not a member of the
appropriate bargaining unit which petitioner
CONTESTED seeks to represent.
Shall be allowed to vote, but their votes shall
be segregated and sealed in individual
envelopes. The envelopes shall be opened and
the question of eligibility shall be passed upon
only if the number of segregated voters will
materially alter the results of the election.

Book V, Rule IX, Sec 5, supra p. 52
Book V, Rule I, Sec 1 (q), supra p. 49
R. TRANSPORT CORP v. LAGUESMA (1993)
D: If dismissal is under question, (i.e. a case of illegal
dismissal and/or unfair labor practices was filed) the
employees concerned could still qualify to vote in the
elections.
F: CLOP filed petition for certification election which was
joined by a petition by NAFLU and ALU-TUCP. R. Transport
filed motion to suspend proceedings as there were cases
involving participation of CLOP members in a strike and/or
their illegal dismissal, which Transport claimed affected their
qualification to vote.
H: Dismissed Transport’s petition, as illegally dismissed
employees are still eligible to vote until the motion to declare
their employment status legally terminates, or the complaint
for illegal dismissal is resolved by the NLRC.
d. Dismissed Employees
Book V, Rule IX, Sec 5. supra p. 52
Art 283 (2) Closure of establishment and reduction of
personnel. - The employer may also terminate the employment
of any employee due to the installation of labor-saving
devices, redundancy, retrenchment to prevent losses or the
closing or cessation of operation of the establishment or
undertaking unless the closing is for the purpose of
circumventing the provisions of this Title, by serving a written
notice on the workers and the Ministry of Labor and
Employment at least one (1) month before the intended date
thereof. In case of termination due to the installation of labor-
saving devices or redundancy, the worker affected thereby
shall be entitled to a separation pay equivalent to at least his
one (1) month pay or to at least one (1) month pay for every
year of service, whichever is higher. In case of retrenchment to
prevent losses and in cases of closures or cessation of
operations of establishment or undertaking not due to serious
business losses or financial reverses, the separation pay shall
be equivalent to one (1) month pay or at least one-half (1/2)
month pay for every year of service, whichever is higher. A
fraction of at least six (6) months shall be considered one (1)
whole year.
Book V, Rule 2
Sec 2. Who may join labor unions and worker's associations.
xxx Alien employees with valid working permits issued by the
Department may exercise the right to self-organization and
join or assist labor unions for purposes of collective
bargaining if they are nationals of a country which grants the
same or similar rights to Filipino workers, as certified by the
Department of Foreign Affairs, or which has ratified either ILO
Convention No. 87 and ILO Convention No. 93.xxx
YOKOHAMA TIRE PHIL v. YOKOHAMA EMPLOYEES UNION
(2007)
D: A dismissed EE but has contested the legality of dismissal
at the time of the issuance of the order for the conduct of a
certification election shall be considered a qualified voter,
unless dismissal was declared valid in a final judgment at the
time of the conduct of the certification election.
F: The votes of 78 EEs in a certification election were being
UP LAW C2017 LABOR 2 (PROF. DAWAY) MIDTERMS REVIEWER | 54
contested by the ER for being cast after their dismissal.
H: Votes should be considered. Section 2, Rule XII of the
Omnibus Rules clearly allows such EEs to participate in
certificate elections.
e. Voting Day/Venue
• Regular working day
• Not later than 45 days from 1st pre-elec. conference
• Within ER's premises, lest circumstances provide
otherwise
Book V, Rule IX Sec 2, supra p. 52
ASIAN DESIGN AND MFG CORP v. DIR CALLEJA AND
SOUTHERN PHIL FED. OF LABOR-KMU (1989)
D: Certification election and illegal strike are independent
issues. Election shall be set during the regular business day of
the company unless otherwise agreed upon.
F: On May 19 (regular business day), factory workers of
ADMACOR held a strike. Company filed petition to declare the
certification election as null and void on the ground of the
strike by workers on the day of the certification election. Said
day cannot be considered a regular business day as required
by law.
H: Denied petition to declare certification election null and
void. Strike did not necessarily make said date an irregular
business day.
f. Conduct of Election
• Within 24 hours from receipt of the notice of entry of
final judgment granting the conduct of a certification
election, the Regional Director shall cause the raffle of
the case to an Election Officer who shall have control
of the pre-election conference and election
proceedings.
• The election precincts shall open and close on the
date and time agreed upon during the pre-election
conference. The opening and canvass of votes shall
proceed immediately after the precincts have closed.
• Failure of any party or the employer or his/her/their
representative to appear during the election
• Proceedings shall be considered a waiver to be
present and to question the conduct thereon.
Book V, Rule IX, Secs. 1 & 15 supra pp. 51, 52
HERCULES INDUSTRIES INC. v. SEC DOLE (1992) supra p. 48
D: ER not a party to a certification election, which is the
sole/exclusive concern of the workers. In the choice of their
collective bargaining representative, the employer is an
intruder and only instance it may be involved is when obliged
to file a petition for certification election in behalf of EEs. After
order for certification election issues, ER’s involvement ceases
and becomes neutral bystander.

g. Protest Period
CHALLENGING OF VOTES
Who may Authorized representative of any of the
challenge? contending unions and the employer
Why? • No ER-EE relationship
• Voter not part of the bargaining unit
Procedure • Election Officer shall place the ballot in
an envelope which shall be sealed in the
presence of the contending unions and
employer.
• Envelopes shall be opened and the
question of eligibility shall be passed
upon only if the number of segregated
voters will materially alter the results of
the election.
On-the spot questions
• questions raised during conduct of election
• may be decided by Election Officer (except grounds
for challenging Votes)
PROTEST
Who may file? Any party-in-interest
Subject Conduct or mechanics of the election
Where to file Med-Arbiter
Period Within 5 days after the close of the election
proceedings
• The phrase "close of election
proceedings" refers to that period from
the closing of the polls to the counting
and tabulation of the votes and does not
cover the period for the final
determination of the challenged votes
and the canvass thereof. (Phil. Fruits and
Vegetable Industries v. Torres)
• Grounds of protests not raised before the
close of the proceedings and duly
formalized within 5 days after the close
of the election proceedings are deemed
waived. (Samahan ng Manggagawa v.
Laguesma)
Book V, Rule IX Secs. 10 – 13 supra p. 52
Book v, Rule 1, Sec. 1 (p) "Election Proceedings" refer to the
period during a certification election, consent or run-off
election and election of union officers, starting from the
opening to the closing of the polls, including the counting,
tabulation and consolidation of votes, but excluding the period
for the final determination of the challenged votes and the
canvass thereof.
SAMAHAN NG MANGGAGAWA v. USEC LAGUESMA AND
MNMPP (1997)
D: Grounds of protests not raised before the close of the
proceedings and duly formalized within five (5) days after the
close of the election proceedings are deemed waived.
F: Company failed to provide the list of all R&F EEs acc to the
last 3 months’ payroll so list of R&F EEs provided by SSS was
used in the conduct of a Certification Election. Losing Union,
SAMAHAN, only contested the validity of the SSS list for the
first time in appeal after Med-Arbiter dismissed their election
protest.
UP LAW C2017 LABOR 2 (PROF. DAWAY) MIDTERMS REVIEWER | 55
H: At the latest, SAMAHAN’s objection to the use of the SSS
should have been raised during the elections and formalized
in its election protest.
h. Appeal; Period
PETITION GRANTED DISMISSED/DENIED
UNORGANIZED - Not subj to appeal - May be appealed
- Any issue may be to the Office of the
raised by means of Secretary within 10
protest on the days from receipt
conduct and results
of the certification
ORGANIZED May be appealed to May be appealed to
Secretary within 10 Secretary within 10
days from receipt days from receipt
Who may appeal? Any party to an election
Subject of appeal Order or results as determined by M.Arb.
On what grounds? Rules and regulations for the conduct of
elections have been violated
Form of appeal - Verified under oath
- consists of a memorandum of appeal,
specifically stating the grounds relied
upon by the appellant with the
supporting arguments and evidence
Where to file - Regional office where the petition
originated
- Within 24 hours from receipt of appeal,
Regional Director shall cause transmittal
thereof to the Office of the Secretary
Effect of filing Stays the holding of any certification
election
Decision of the - 15 days from receipt of entire records
Secretary - Final and executory 10 days after
receipt by the parties
- No MR shall be entertained
If no appeal filed Med-Arb shall enter the finality of the
order/decision in the records of the case
and cause the transmittal of the records
to the Regional Director
LC, Art. 265, supra p. 49
Book V, Rule VIII, Secs. 17 – 21 supra pp. 50-51
PHIL FRUITS AND VEGETABLE INDUSTRIES INC v. TORRES
(1992)
D: Requisites
(1) The protest must be filed with the representation officer
and made of record in the minutes of the proceedings before
the close of election proceedings, and
(2) The protest must be formalized before the Med-Arbiter
within five (5) days after the close of the election proceedings
F: A certification election was held among the regular and
seasonal workers of PFVII subject to challenge with regard to
the qualification to vote of some 194 workers. PFVII filed a
manifestation alleging that the list of eligible voters were
posted a day short of the five-day posting requirement. More
than two months after the election was held, PFVII formally
filed a Protest.
H: Protest was filed beyond the reglementary period.

i. Nullification of Election Results
UNITED EMPLOYEES UNION OF GELMART INDUSTRIES v.
NORIEL (1975)
D: General allegation of duress is not sufficient to invalidate a
certification election; it must be shown by competent and
credible proof.
F: Union seeks to nullify the certificate election due to
procedural infirmities and irregularities i.e. UEUGIP’S name
was willfully deleted and replaced by a non-contending party
Philippine Social Security Labor Union (PSSLU) in notice of
certificate election and sample ballot.
H: Cert Elec should not be nullified. The grievance spoken of is
more fancied than real, the assertion of confusion and
demoralization based on conjecture rather than reality
j. Where no petition for CE is filed: Effect
LC, Art. 259, supra p. 45
LC, Art. 262, supra p. 43
E. Certification of Designated Majority Union
Requisites (a) The union must have obtained a majority of
the valid votes cast.
(b) No protest was filed or, even if one was filed,
the same was not perfected within the five-
day period for perfection of the protest.
(c) No challenge or eligibility issue was raised
or, even if one was raised, the resolution of
the same will not materially change the
results of the elections.
Effect The winning union shall have the rights,
privileges and obligations of a duly certified
collective bargaining agent from the time the
certification is issued.
LC, Art. 261, supra p. 41
LC, Art. 262, supra p. 43
Book V, Rule 1, Sec 1 (t) "Exclusive Bargaining Representative"
refers to a legitimate labor union duly recognized or certified
as the sole and exclusive bargaining representative or agent of
all the employees in a bargaining unit.
Book V, Rule IX, Secs. 16, 20 supra pp. 52-53
PHIL DIAMOND HOTEL v. MANILA DIAMOND HOTEL
EMPLOYEES UNION (2006)
D: Art. 242(a) states that one of the rights of a legitimate labor
organizations is to act as representative of its members for
the purpose of collective bargaining—this must be read in
connection with Art. 255, which states that only the labor
organization designated or selected by the majority of the
employees in an appropriate collective bargaining unit is the
exclusive representative of the employees in such unit for the
purpose of collective bargaining.
F: Union filed a petition for certification election for the
representation of its members only. The company refused, so
the union went on strike, which resulted in violence.
H: Union’s contention that it was bargaining on behalf only of
its members would only fragment the rank-and-file
UP LAW C2017 LABOR 2 (PROF. DAWAY) MIDTERMS REVIEWER | 56
employees. The other workers who are not members are at a
serious disadvantage, because if the same shall be allowed,
employees who are non-union members will be economically
impaired and will not be able to negotiate their terms and
conditions of work, defeating the purpose of collective
bargaining.
F. Bars to Certification Election
LC, Art. 238—Prohibition on certification election. The Bureau
shall not entertain any petition for certification election or any
other action which may disturb the administration of duly
registered existing collective bargaining agreements affecting
the parties except under Articles 253, 253-A and 256 of this
Code. (also supra p. 41)
LC, Art. 256—Procedure in Collective Bargaining
The following procedures shall be observed in collective
bargaining:
(a) When a party desires to negotiate an agreement, it shall
serve a written notice upon the other party with a statement of
its proposals. The other party shall make a reply thereto not
later than ten (10) calendar days from receipt of such notice;
(b) Should differences arise on the basis of such notice and
reply, either party may request for a conference which shall
begin not later than ten (10) calendar days from the date of
request.
(c) If the dispute is not settled, the Board shall intervene upon
request of either or both parties or at its own initiative and
immediately call the parties to conciliation meetings. The
Board shall have the power to issue subpoenas requiring the
attendance of the parties to such meetings. It shall be the duty
of the parties to participate fully and promptly in the
conciliation meetings the Board may call;
(d) During the conciliation proceedings in the Board, the
parties are prohibited from doing any act which may disrupt or
impede the early settlement of the disputes; and
(e) The Board shall exert all efforts to settle disputes amicably
and encourage the parties to submit their case to a voluntary
arbitrator. (As amended by Section 20, Republic Act No. 6715,
March 21, 1989)
LC, Art. 259 - Duty to bargain collectively when there exists a
collective bargaining agreement, supra p. 45.
LC Art. 259-A—Terms of A Collective Bargaining Agreement.
Any Collective Bargaining Agreement that the parties may
enter into shall, insofar as the representation aspect is
concerned, be for a term of five (5) years. 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 sixty-day period immediately before the date of
expiry of such five-year term of the Collective Bargaining
Agreement. All other provisions of the Collective Bargaining
Agreement shall be renegotiated not later than three (3) years
after its execution. Any agreement on such other provisions of
the Collective Bargaining Agreement entered into within six (6)
months from the date of expiry of the term of such other
provisions as fixed in such Collective Bargaining Agreement,
shall retroact to the day immediately following such date. If

any such agreement is entered into beyond six months, the
parties shall agree on the duration of retroactivity thereof. In
case of a deadlock in the renegotiation of the Collective
Bargaining Agreement, the parties may exercise their rights
under this Code.
LC, Art. 262, supra p. 43
Book V, Rule VIII, Sec. 3, supra p. 45
Book V, Rule VIII, Sec. 14, supra p. 48
1. One Year Bar/Recognition or Certification Bar Rule
Book V, Rule VIII, Sec. 3(a) When to file. - A petition for
certification election may be filed anytime, except: (a) when a
fact of voluntary recognition has been entered or a valid
certification, consent or run-off election has been conducted
within the bargaining unit within one (1) year prior to the filing
of the petition for certification election. Where an appeal has
been filed from the order of the Med-Arbiter certifying the
results of the election, the running of the one year period shall
be suspended until the decision on the appeal has become
final and executory;
Book V, Rule VIII, Sec. 14(c) Denial of the petition; Grounds. -
The Mediator-Arbiter may dismiss the petition on any of the
following grounds: (c) the petition was filed within one (1) year
from entry of voluntary recognition or a valid certification,
consent or run-off election and no appeal on the results of the
certification, consent or run-off election is pending
KAISAHAN NG MANGGAGAWANG PILIPINO v. TRAJANO
(1991)
D: Absent proof to establish any of the exemptions under Sec
3 (deadlock), there exists no prohibition on filing a petition for
a certification election.
F: NAFLU was proclaimed sole and exclusive bargaining agent
of Viron employees in 1981. After 4 years, KAMPIL filed a
petition for certification election. NAFLU opposed, saying the
petition is barred, as a deadlock has been reached by NAFLU
and Viron in its collective bargaining.
H: No bar to petition. 4 years had passed and no CBA had
been passed, allowing a petition for certification election to be
granted anew.
R. TRANSPORT CORP. v. LAGUESMA (1993) supra p. 54
D: If the dismissal of employees is under question, the
employees concerned could still qualify to vote in the
elections.
2. Negotiation Bar Rule
Book V, Rule VIII, Sec. 3(b) - A petition for certification election
may be filed anytime, except: (b) when the duly certified union
has commenced and sustained negotiations in good faith with
the employer in accordance with Article 250 of the Labor Code
within the one year period referred to in the immediately
preceding paragraph
Book V, Rule VIII, Sec. 14(d) Denial of the petition; Grounds. -
The Mediator-Arbiter may dismiss the petition on any of the
following grounds: xxx (d) a duly certified union has
commenced and sustained negotiations with the employer in
UP LAW C2017 LABOR 2 (PROF. DAWAY) MIDTERMS REVIEWER | 57
accordance with Article 250 of the Labor Code within the one-
year period referred to in Section 14(c) of this Rule, or there
exists a bargaining deadlock which had been submitted to
conciliation or arbitration or had become the subject of a valid
notice of strike or lockout to which an incumbent or certified
bargaining agent is party
3. Deadlock Bar Rule
Book V, Rule VIII, Sec. 3(c) When to file. - A petition for
certification election may be filed anytime, except: c) when a
bargaining deadlock to which an incumbent or certified
bargaining agent is a party had been submitted to conciliation
or arbitration or had become the subject of a valid notice of
strike or lockout;
Book V, Rule VIII, Sec. 14(d) Denial of the petition; Grounds. -
The Mediator-Arbiter may dismiss the petition on any of the
following grounds: xxx (d) a duly certified union has
commenced and sustained negotiations with the employer in
accordance with Article 250 of the Labor Code within the one-
year period referred to in Section 14(c) of this Rule, or there
exists a bargaining deadlock which had been submitted to
conciliation or arbitration or had become the subject of a valid
notice of strike or lockout to which an incumbent or certified
bargaining agent is party
DIVINE WORD UNIVERSITY v. SEC OF LABOR (1992)
D: In the absence of a CBA, an employer who is requested to
bargain collectively may file a petition for certification election
any time except upon a clear showing that one of these two
instances exists: (a) the petition is filed within one year from
the date of issuance of a final certification election result or
(b) when a bargaining deadlock had been submitted to
conciliation or arbitration or had become the subject of a valid
notice of strike or lockout.
F: The union was proclaimed the bargaining unit of the
university employees. After 3 years of submitting CB
proposals to the university and being ignored, the union filed a
notice of strike. Conferences held after the filing led to the
agreement that the union would submit CB proposals again.
An hour before the agreement was concluded, the university
filed a petition for certification election. The union opposed
this, alleging a bargaining deadlock.
H: No bargaining deadlock in the CB process as there was no
“reasonable effort at good faith bargaining” on the part of the
university, so it has the right to file the petition for certification
election, BUT to grant this would put an unjustified premium
on bad faith bargaining.
SAN MIGUEL CORP. v. NLRC (1999)
D: A CB Deadlock is “the situation between the labor and the
management of the company where there is failure in the
collective bargaining negotiations resulting in a stalemate”. All
remedies must be exhausted before one is proclaimed by
either party.
F: SMC retrenched some of its employees. The union filed
grievance cases, and the grievance procedure laid down in the
CBA was followed. Before the grievance proceedings finished,
SMC notified the union that the employees who could not be
redeployed would be terminated. The union filed a notice of
strike on the ground of bargaining deadlock and violation of
the CBA. SMC sought to dismiss the notice, and to have the

parties continue with the proceeding.
H: Proceedings should continue. No bargaining deadlock—the
union has not yet exhausted its remedies under the CBA. The
violation of the CBA is chargeable against the union because it
was the party which abandoned the grievance procedure in
the CBA.
4. Contract Bar Rule
LC, Art. 238, supra p. 41 or 56
LC, Art. 259, supra p. 45
LC, Art. 259-A, supra p. 56
LC, Art. 256, supra p. 56
Book V, Rule VIII, Sec. 3(d)—Denial of the petition; Grounds. A
petition for certification election may be filed anytime, except:
(d) when a collective bargaining agreement between the
employer and a duly recognized or certified bargaining agent
has been registered in accordance with Article 231 of the
Labor Code. Where such collective bargaining agreement is
registered, the petition may be filed only within sixty (60) days
prior to its expiry.
Book V, Rule VIII, Sec. 14(d) The Mediator-Arbiter may dismiss
the petition on any of the following grounds: xxx (b) the
petition was filed before or after the freedom period of a duly-
registered collective bargaining agreement; provided that the
sixty-day period based on the original collective bargaining
agreement shall not be affected by any amendment, extension
or renewal of the collective bargaining agreement;
Book V, Rule VIII, Sec. 24—Effects of Earlier Agreements. The
representation case shall not be adversely affected by a
collective bargaining agreement registered before or during
the last sixty (60) days of a subsisting agreement or during the
pendency of the representation case.
COLEGIO DE SAN JUAN DE LETRAN V. ASSOC. (2000)
D: For the employer to validly suspend bargaining processes,
there must be a valid petition for certification election raising
a legitimate representation issue. Mere filing of petition for
certification election does not justify suspension of
negotiations by employer.
F: Union wanted to continue renegotiating CBA. Letran
claimed it was already prepared for signing. Union rejected the
unsigned CBA. Letran accused union of bargaining in bad
faith. Union and Letran started negotiations on a new CBA.
Letran suspended negotiations upon learning that another
labor union had filed a petition for certification election. Union
H: Letran is guilty of ULP by refusing to bargain with union.
Suspension of negotiations due to another union’s filing of
petition for certification election was not valid. The other
union’s filing of petition for certification election did not bar
the negotiations because it was filed after the 60-day freedom
period.
4. a. When not a bar
PICOP v. DEQUILLA (2011)
D: An existing CBA does not serve as a bar for a filing of a
certification election. When there is a representational issue,
the status quo provision for the need to await the creation of a
new agreement will not apply. Otherwise, it will create an
UP LAW C2017 LABOR 2 (PROF. DAWAY) MIDTERMS REVIEWER | 58
absurd situation where the union members will be forced to
maintain membership by virtue of the union security clause
under the CBA and, thereafter, support another union while
filing a petition for certification election.
F: Dequilla, et al. were members of NAMAPRI (bargaining
agent of PICOP R&F employees) terminated by PICOP due to
alleged acts of disloyalty when they signed authorization in
support of the petition for cancellation of the rival union
before the freedom period. PICOP claims this was in violation
of the union security clause of the CBA.
H: Mere signing of the authorization before the freedom period
is not valid proof of disloyalty, or sufficient ground to
terminate the employment, as the petition itself was actually
filed during the freedom period
G. Suspension of CE: Prejudicial Question
Section 3. Effects of the filing/pendency of inter/intra-union
and other related labor relations disputes, par. 2 - The filing or
pendency of any inter/intra-union dispute and other related
labor relations dispute is not a prejudicial question to any
petition for certification election and shall not be a ground for
the dismissal of a petition for certification election or
suspension of proceedings for certification election.
LINGKOD MANGGAGAWA NG RUBBERWORLD
v. RUBBERWORLD (2007)
D: Upon appointment of a management committee, the
rehabilitation receiver, board or body, all actions for claims
against corporations under managements or receivership
pending before any court, tribunal, board or body shall be
suspended. Allowing labor cases to proceed defeats the
purpose of the automatic stay and encumbers management
committee’s time and resources
F: Rubberworld filed a Notice of Temporary Partial Shutdown
due to severe financial crisis. Bisig (had CBA with
Rubberworld) went on strike, speeding up the shutdown.
Petitioner union filed a complaint against Rubberworld,
alleging it filed a petition for certification election during the
freedom period granted by the DOLE Regional Director. While
the complaint was pending, Rubberworld filed a petition with
the SEC which granted that all actions for claims against
Rubberworld be suspended. LA still rendered decision finding
Rubberworld liable for ULP and ordering the payment of
P27M.
H: LA decision void for violating the suspension order, which
mandates the suspension of all actions for claims against a
corporation under a management committee by the SEC.
H. Opposition
PROTECTION TECHNOLOGY V. SEC. OF LABOR (1995)
D: The union must first submit its books of accounts before it
may exercise the rights of a legitimate labor organization.
Non-submission of the books of account certified by and
attested to by the appropriate officer is a ground which the
employer can invoke to oppose a petition for certification
election filed by the local or chapter concerned.
F: Union filed a petition for certification election. Company
opposed on the ground that the Union failed to submit its
books of account with the BLR at the time it was registered as
 UP LAW C2017 LABOR 2 (PROF. DAWAY) MIDTERMS REVIEWER | 59

a legitimate labor organization.

H: Failure of the secretary of union to certify the required

documents under oath prevents its acquisition of a legitimate
status.

I. Effect of Petition for Cancellation

of Trade Union Registration

Labor Code, Art. 244-A—Effect of a Petition for Cancellation of

Registration. A petition for cancellation of union registration
shall not suspend the proceedings for certification election nor
shall it prevent the filing of a petition for certification election.

In case of cancellation, nothing herein shall restrict the right of

the union to seek just and equitable remedies in the
appropriate courts. (As amended by RA 9481); also supra p. 23

SAMAHAN NG MANGGAGAWA SA PACIFIC PLASTIC

v. LAGUESMA (1997)
D: Certification election can be conducted despite pendency of
a petition to cancel the union registration certificate.

F: MNMPP filed a petition for certification election. Samahan

countered by seeking the cancellation of MNMPP’s union
registration. The Secretary of Labor ordered the holding of a
certification election. Pacific Plastic failed to provide the list of
its rank and file employees despite repeated warnings, so an
employee list from SSS was used. MNMPP got the most
votes. Samahan claimed that the proceedings for the
cancellation of MNMPP’s union registration was a prejudicial
question.

H: Not a prejudicial question. Certification election valid. At

the time MNMPP filed its petition for certification, it still had
the legal personality to perform such act absent an order
directing its cancellation.

AIR PHILS. CORP. v. BLR (2006)

D: To de-certify a union, it is not enough to establish that the
rank-and-file union includes ineligible employees in its
membership. Art. 239 (a) and (c) states that it must be shown
that there was misrepresentation, false statement or fraud in
connection with the adoption or ratification of the constitution
and by-laws or amendments thereto, the minutes of
ratification, etc.

F: APFLA, after it was duly registered with DOLE, filed a

petition for certification election, which it later won. Air Phil
filed for the cancellation of APFLA’s registration, alleging that
its membership is not made up purely of rank-and-file
employees, but includes supervisory employees.

H: APFLA registration cannot be cancelled. Art. 245 re: barring

supervisory employees from joining the union of rank-and-file
employees is not a ground for cancellation of union
registration.