Professional Documents
Culture Documents
LabRel Notes and Reviewer
LabRel Notes and Reviewer
COLLEGE OF LAW
LABOR LAW II
Arianne Reyes
Academics Head
Henry Aguda
Subject Head
Dielle Kapunan
Ryan Balisacan
Rowena Salonga
LABOR LAW II
LABOR RELATIONS
TABLE OF CONTENTS
Section
SECTION 1
SECTION 2
SECTION 3
SECTION 4
SECTION 5
SECTION 6
SECTION 7
SECTION 8
SECTION 9
SECTION 10
SECTION 11
Topic
Right to Self-Organization
Labor Organization
Union Security
Appropriate Bargaining Unit
Union Representation
Collective Bargaining
Unfair Labor Practice
Concerted Activities
Labor Injunction
Other Modes of Labor Dispute Settlement
Amendments to the Labor Code
Page no.
2
5
9
12
15
21
25
32
39
44
54
LABOR LAW II
LABOR RELATIONS
PART I
RIGHT TO SELF ORGANIZATION
I.
Basis of Right
The right to self-organization is granted to the employee by
both the Constitution (ART. III, Sec 8; ART. XIII, Sec. 3) and by
the Labor Code (ART. 243). Thus, it is both constitutionally
guaranteed as well as statutorily guaranteed. Being a
primordial Constitutional Right, it prevails most of the time
over the right to property of the employer.
II.
Right not to exercise it: the right NOT to join, affiliate with, or assist
any union, and to disaffiliate or resign from a labor organization, is
subsumed in the right to join, affiliate with, or assist any union, and
to maintain membership therein. It is self-evident that just as no
one should be denied the exercise of a right granted by law, so also,
no one should be compelled to exercise such a conferred right
(Reyes v. Trajano (1992))
Right to withdraw from the organization: the right of the
employees to self-organization is a compelling reason why their
withdrawal from the cooperative must be allowed. As pointed out
by the union, the resignation of the member-employees is an
expression of their preference for union membership over that of
membership in the cooperative (Central Negros Electric
Cooperative v. Sec. of Labor (1991))
Right to raise issues in behalf of the organization: Luna's remarks
were intended to protect the interests of the members of the
Provident Fund from what he honestly believed was a risky venture
on the part of management. His actuations as such should therefore
be considered as legitimate exercise of the employees' right to selforganization and as an activity for their mutual aid and protection,
aside from being privileged communication protected by the
constitutional guarantee on free speech (Union of Supervisors v.
Sec. of Labor (1991))
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COOPERATIVE MEMBERS
Cooperative Rural Bank of Davao vs Ferrer-Calleja (1988)
2.
An employee of such a cooperative who is a member AND COOWNER cannot invoke the right to collective bargaining for certainly
an owner cannot bargain with himself or his co-owners.
However, insofar as it involves cooperatives with employees who
are NOT members or co-owners thereof, certainly such employees
are entitled to exercise the rights of all workers to organization,
collective bargaining negotiations, and others as are enshrined in
the Constitution and existing laws of the country.
PD 175: a COOPERATIVE is an organization composed of small
producers and of consumers who voluntarily join together to form
business enterprises which they themselves, own, control and
patronize. Its owners or members are the ones who run and
operate the business while the others are its employees.
NON-EMPLOYEES
Rep. Planters Bank General Services Employees Union v.
Laguesma (1996)
If union members are not employees, no right to organize
for the purpose of bargaining and to be certified as
bargaining agent can be recognized.
V.
Party Protected
ALL EMPLOYEES OF BARGAINING UNIT
Mactan Workers Union vs Aboitiz (1972)
The labor union who won as sole bargaining agent of the
employees does not act for its members alone. It
represents all the employees in such a bargaining unit.
Furthermore, what is entitled to protection is labor, not
the labor organization. The latter are merely
instrumentalities through which their welfare may be
promoted and fostered.
PERIOD OF DISAFFILIATION
Tanduay Distillery Labor Union v. NLRC (1987)
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
expiration of CBA.
EXCEPTION: Shift of allegiance of majority. In such a case,
however, the CBA continues to bind members of the new
or disaffiliated and independent union up to the CBAs
expiration date
DEFINITIONS
1.
1.
EMPLOYER
Art. 212 (e)
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Note: By using the word includes and not mean, congress did
not intend to give a complete definition of employer. But
rather such definition should be complementary to what is
commonly understood as employers.
- IMPLICATION: the employer may NOT necessarily be the owner
of the business.
- Can a Labor Organization be considered an employer?
Yes, but the only instance wherein a labor organization
becomes an employer is when it is acting as an employer
in relation to its own employees and not as a labor
organization.
Significance of this is that a Labor Organization can
possibly commit an Unfair Labor Practice in two ways:
As an Employer, if in relation to its own employees
(Art. 248); or
As a Labor Organization, in relation to the company
(Art. 249).
EMPLOYEE
Art. 212 (f)
2.
3.
LABOR DISPUTES
LABOR DISPUTES
Art. 212 (l)
INCLUDE
1. Any controversy or matter
2. Concerning
a. Terms or conditions of employment or;
b. The association or representation of
persons
in
negotiating,
fixing,
maintaining, changing or arranging the
terms and conditions of employment,
3. Regardless of whether the disputants stand
in proximate relation of employer and
employee.
LABOR ORGANIZATION
Art. 212 (g)
LABOR ORGANIZATION:
COMPOSITION: Employees
PURPOSE: Collective Bargaining or of dealing with employers
concerning terms and conditions of employment.
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PART II
LABOR ORGANIZATION
I.
FEDERATION/NATIONAL UNION
ART. 237
a. Proof of affiliation of at least 10 locals or chapters
and;
DEFINITIONS
LABOR ORGANIZATION
ART. 212 (g)
collective bargaining or
PROCEDURE
ART. 235
All requisite documents and papers to be filed shall be
certified under oath by the secretary or the treasurer of
the organization/union as the case may be and attested
to by its president.
Moreover, Book V, Rule II, Sec. 4 requires:
i.
ii.
II.
2.
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2.
ACTION OF APPLICATION
ART. 235
The bureau shall act on all applications for registration within 30 days
from filing.
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3.
Collateral Attack
2.
3.
4.
5.
6.
7.
4.
Effect of Non-registration
5.
V.
Union-Member Relations
1. Nature of Relationship
Union is but an AGENT of the individual workers and it has the duty
to inform the members of the labor matters entrusted to it. The
employer may rely on the authority of the union to bring the union
members especially in collective bargaining (Heirs of Cruz v. CIR
(1969)).
2. Issues
o The point to be stressed is that the unions CBL is the
fundamental law that governs the relationship between and
among the members of the union. They embody a covenant
between a union and its members and constitute the
fundamental law governing members rights and obligations (UST
Faculty Union v. Bitonio (1999)).
o GENERAL RULE: Labor union remains a PRIVATE and VOLUNTARY
organization. Hence, membership is a matter of privilege.
o EXCEPTION: When union has access to employment, example:
CLOSED SHOP AGREEMENT. This converts union into one with a
public character and thus the government will have a right to
inquire into the rules or business of the union (see Salunga v. CIR
(1967)).
RIGHT TO DISCIPLINE
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as prayed for, and not call for a referendum to decide the issue
(Kapisanan v. Trajano (1985)).
ELECTION INVALID
DUE PROCESS
ART. 279
ELECTION OF OFFICERS
QUALIFICATIONS
UNION FUNDS
RIGHTS/CONDITIONS OF MEMBERSHIP IN A LABOR ORG
ART 241
MANNER OF ELECTION
ART. 241 (C)
TENURE
ART 241 (C)
(i) Funds of the org shall not be applied for any purpose or object
other than those expressly provided by the CBL or authorized by
written resolution adopted by the majority of the members at a
general meeting duly called for the purpose
5 years
COMPENSATION
ART. 241 (k)
General Rule: NONE
Except: If specifically provided by their CBL, or allowed by written
resolution duly authorized by majority of all members in a
general membership meting duly called for the purpose
VOTERS LIST
1.
2.
DISQUALIFICATION OF CANDIDATE
o If candidate is proven to be disqualified, it does not mean that
the candidate with 2nd highest number of votes becomes the
elected officer (Manalad v. Trajano (1989)).
EXPULSION REMEDY
o If herein union officers were guilty of the alleged acts imputed,
BLR pursuant to Article 242 should have meted out the
appropriate penalty on them, i.e., to expel them from the Union,
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MANDATORY ACTIVITY
Judicial process of settling disputes laid down by the law. Amicable
settlements cannot be considered as a mandatory activity. ART 241
(o) envisions a situation where there is a judicial or administrative
proceeding for recovery of wages (Vengco v Trajano (1989))
Note: Article 222 (b) does not except a CBA, later placed under
compulsory arbitration, from the ambit of its prohibition. Hence,
individual written authorizations for check-offs are not dispensed
with, even if the CBA provides so (Galvadores v Trajano (1986)).
Exception
Affiliation
PURPOSE
ART 211 (C)
To foster the free and voluntary organization of a
strong and united labor movement
PHIL SKYLANDERS V. NLRC (2002)
The sole essence of affiliation is to increase, by
collective action, the common bargaining power of
local unions for the effective enhancement and
protection of their interests. Admittedly, there are
times when without succor and support local unions
may find it hard, unaided by other support groups, to
secure justice for themselves.
NATURE OF RELATIONSHIP
Filipino Pipe and Foundry Corp v. NLRC (1999)
The mother union, acting for and in behalf of its
affiliate, had the status of an agent while the local
remained the basic unit of the association, free to
serve the common interest of all its members, subject
only to restraints imposed by the constitution and by
the by-laws of the association. The same is true even if
the local is not a legitimate labor organization.
EFFECT OF AFFILIATION
Adamson v. CIR (1984)
Locals remain the basic units of association, free to
serve their own and the common interest of all.
Inclusion of FFW in the registration is merely to stress
that they are its affiliates at the time of registrations. It
does not mean that said local unions cannot stand on
their own. Affiliation does not mean they lost their
own legal personality.
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that the closed-shop contract is the most
prized achievement of unionism.
PART III
UNION SECURITY
Union Shop
Closed Shop
Maintenance
shop
Hiring
Continued
Employment
Ground for
Termination
Employees
have
access to
labor
market.
Can be
hired even
if not
union
member.
After some
time,
employee
must become
a member
If the employee
does not join the
union after a
reasonable time,
it will be grounds
for termination,
after due
process is
observed
Employee
must
become a
member
at the time
of hiring
Must be a
member all
through-out
Already a
member
at the time
of hiring
Must
maintain
membership,
otherwise it
shall be a
ground for
termination
If not a member
at anytime,
grounds for
termination,
after due
process is
observed
If disaffiliates
from union,
grounds for
termination,
after due
process is
observed
RATIONALE
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4.04 CONTRACT DRAFTING
PROVISIONUNION SECURITY
LABOR RELATIONS
AND
INTERPRETATION
OF
b.
CHECK-OFF:
1)
2)
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2.
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SUMMARY OF NOTES
Definition:
Union Security Clause a term applied to any form of agreement
which imposes upon employees the obligation to acquire or retain
union membership, at the expense of their employment if they fail
to do so
Note: Observance of Due Process still holds
Closed Shop Agreement:
Gen. Rule: All employees in the bargaining unit are covered
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Part IV
APPROPRIATE BARGAINING UNIT
3. Prior CB history
GEOGRAPHY LOCATION
The primary element in determining whether a given group of
employees constitute a proper bargaining unit is still whether it will,
without inequity to the employer, best serve all employees in the
exercise of their bargaining rights. Geography and location only play
a significant role if:
CORPORATE ENTITIES
Doctrine: It is grave abuse of discretion to treat 2 companies as a
single bargaining unit when these 2 companies are indubitably
distinct entities with separate juridical personalities.
In Umali vs CA, legal corporate entity is disregarded only if it is
sought to hold the officers and stockholders directly liable for
a corporate debt or obligation.
[Indophil Textile Mills Workers Union v. Calica (1992)]
1. FACTORS
IN GENERAL
1.
2.
The fact that there are as many bargaining units as there are
companies in a conglomeration of companies is a positive
proof that a corporation is endowed with a legal personality
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If you have one BIG bargaining unit, most probably you are
grouping together DIFFERENT SKILLED workers.
3.
Principles:
4.
The fact that the businesses are related, that some of the
employees are the same persons working in the other
company and the physical plants, offices and facilities are in
the same compound are NOT sufficient to justify piercing the
corporate veil. [Indophil Textile Mills Workers Union v. Calica
(1992)]
5.
6.
3.
4.
5.
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 vis--vis the rank and file
employees, such identity of interest has allowed their inclusion in
the bargaining of supervisors for purposes of collective bargaining
in turn as employees in relation to the company as their employer.
This identity of interest logically calls for their inclusion in the same
bargaining unit and at the
same time fulfills the laws 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 respondent
associations membership were to be broken up into five separate
ineffective tiny units. Creating fragmentary units would not serve
the interest of industrial peace. The breaking up of bargaining units
into tiny units will greatly impair their organizational value. Since
the confidential employees are very few and are identified with the
supervisors in their role as representatives of management vis-a-vis
the rank and file employees, such identity of interest
has allowed their inclusion in the bargaining unit of supervisorsmanagers for purposes of collective bargaining. Industrial court
enjoys a wide discretion in determining the procedure necessary to
insure the fair and free choice of bargaining representations by
employees. Action in deciding upon an appropriate unit for
collective bargaining purposes is discretionary. Its judgment is
entitled to finality, unless its action is arbitrary or capricious.
SUPERVISOR UNIT
7.
8.
[Dunlop
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REPRESENTATIVE
AND
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bargaining agent. [Young Men Labor Union Stevedores v CIR
(1965)]
Part V
UNION REPRESENTATION
ESTABLISHING UNION MAJORITY
STATUS
CONCEPTS
Certification Election OR Consent Election: 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. [Department
Order No. 40-03 Series of 2003 Rule I (h)]
Purpose
Conduct
Certification election
Aimed at determining
the sole and exclusive
bargaining agent of all
employees
in
an
appropriate bargaining
unit for the purpose of
collective bargaining
1st Level of Choice:
Yes Union or No Union
2nd Level of Choice: If
Yes Union wins,
WHICH union.
[UST Faculty Union v.
Bitonio (1999)]
Consent Election
Merely to
determine the
issue of majority
representation of
all the workers in
the appropriate
collective
bargaining unit
Voluntarily
agreed upon by
the parties, with
or
w/o
intervention from
DOLE
CERTIFICATION ELECTION
BACKGROUND POLICIES AND CHARACTERISTICS BEHIND A
CERTIFICATION ELECTION (IDS-DV)
1. It is not litigation, but a mere investigation of a non-adversary
character
2. Object of the proceedings is not the decision of any
alleged commission of wrong nor asserted deprivation of right,
but is merely the determination of proper bargaining units and
the ascertainment of the will and choice and choice of the
employees in respect of the selection of the bargaining
representative. The determination of the proceeding does not
entail the entry of remedial orders or redress of rights, but
culmination solely in an official designation of bargaining units
and an affirmation of the employees expressed choice of
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8.
the same.
I.
a.
b.
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Bargaining
agent
Petition filed
Freedom Period
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Art. 256:
ORGANIZED
Existing, has one
Art. 257:
UNORGANIZED
None
Has to be a
VERIFIED petition
No petition for
Certification
election
EXCEPT
within 60 days
before
the
expiration of the
collective
bargaining
agreement
(See
Art. 253 & 253-A)
No need to be
Verified
Not applicable.
No freedom period.
Can file petition
anytime.
the
of
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Substantial support
rule
LABOR RELATIONS
freedom period in
Organized
establishments,
why is there none in
unorganized
establishments?
It has something to
do with industrial
peace
Must be duly
supported by 25%
of ALL THE
MEMBERS OF THE
APPROPRIATE
BARGAINING
UNIT.
Percentage base:
all members of an
appropriate
bargaining unit.
NO substantial
support rule.
WHY?
Intention of law is
to bring in the
union, to
implement policy
behind Art. 211a.
General Rule: 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 [Art. 232 sec. 15 of RA 6715]
Exceptions: Art. 253, 253-A and 256 of this Code (60 day freedom
period)
The purpose of the prohibition against the filing of a
petition for certification election outside the so-called freedom
period is to ensure industrial peace between the employer and
its employees during the existence of the CBA. [Republic
Planters Bank Unionv. Laguesma (1996)]
The premature renewal of a CBA cannot bar the holding
of a certification election by virtue of a bona fide petition filed
within the freedom period if the clear intention was to
frustrate the constitutional right of the employees to selforganization. [Associated Labor Union v. Calleja (1989)]
2.
CONDUCTING AGENCY
1.
2.
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be filed only within sixty (60) days
prior to its expiry.
the
bargaining unit, the Regional Office
shall,
after hearing, order the conduct of a
certification election.
WHERE to file?
Sec. 2
WHEN to file?
Sec. 3
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Employees who have been improperly laid off but who have a
present, unabandoned right to or expectation of
reemployment, are eligible to vote in certification elections. If
the dismissal is under question, employees concerned could
still qualify to vote in the elections. [Philippine Fruits v Torres
(211 SCRA 95)]
CHALLENGE VOTER
1.
PROTEST
GENERAL RULE: The bureau shall NOT entertain any petition for
certification election.
1.
2.
c.
d.
e.
1.
2.
3.
1.
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DATE OF ELECTION:
Date election is certified
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2.
LABOR RELATIONS
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Part VI
COLLECTIVE BARGAINING
IMPLEMENTING PROVISIONS
1. PROCEDURE Art. 250
Art. 251
Cf. Art. 233
2. CODE PROCEDURE
Art. 250
Party desiring to bargain collectively shall serve written notice on
other party with statement of proposals
2.
3.
The parties are prohibited from doing any act which may
disrupt or impede the early settlement of the disputes; and
4.
The Board shall exert all efforts to settle disputes amicably and
encourage the parties to submit their case to a voluntary
arbitrator.
Privileged Communication (Art. 233)
Information and statements made at conciliation proceedings
shall be treated as privileged communication and shall not be
used as evidence in the Commission.
5.
6.
3. WAIVER
1. PRIVATE PROCEDURE
Art. 251 Duty to bargain collectively in the absence of collective
bargaining agreements. In the ABSCENCE of an agreement or
other VOLUNTARY ARRANGEMENT providing for a MORE
EXPEDITIOUS manner of collective bargaining, it shall be the duty of
the employer and the representatives of the employees to bargain
collectively in accordance with the provisions of this Code.
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1. POSITIVE STATEMENT
DEADLOCK
Collective Bargaining Deadlock: the situation between the labor
and the management of the company where there is failure in the
collective bargaining negotiations resulting in a stalemate [San
Miguel Corporation v. NLRC (1999)]
Ground for strike or lockout [Rule XXII, Section I, of the Rules
and Regulations Implementing Book V the Labor Code]
MINUTES OF NEGOTIATION
but such duty does not compel any party to agree to a proposal
or to make any concession.
2.
DOCTRINES
While it is a mutual obligation, the employer is not under any
legal duty to initiate contract negotiation.
The mechanics of collective bargaining is set in motion when the
following are present:
(1) possession of the status of majority representation of the
employees' representative in accordance with any of the means of
selection or designation provided for by the Labor Code,
(2) proof of majority representation and
(3) a demand to bargain under Article 251, par. (a) of the New Labor
Code. [Kiok Loy v NLRC (1986)]
Collective bargaining does not end with the execution of an
agreement. It is a continuous process. The duty to bargain imposes
on the parties during the term of their agreement the
mutual obligation "to meet and confer promptly and expeditiously
and in good faith . . . for the purpose of adjusting any grievances or
question arising under such agreement" and a violation of this
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SUSPENSION OF BARGAINING
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Guidelines:
1.
2.
CONTRACT BENEFICIARIES
CONTENTS
In a long line of cases, this Court has held that when a collective
bargaining contract is entered into by the union representing the
employees and the employer, even the nonmember employees are
entitled to the benefits of the contract. To accord its benefits only
to members of the union without any valid reason would constitute
undue discrimination against nonmembers. [New Pacific Timber
and Supply v. NLRC (2000)]
Grievance Procedure
1.
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2.
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b.
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or
Procedure:
1.
2.
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YES. Until a new CBA has been executed by and between the
parties, they are duty bound to keep the status quo and to continue
in full force and effect the terms and conditions of the existing
agreements. The law does not provide for an exception nor
qualification as to which of the economic provisions of the existing
agreements are to retain force and effect, therefore it encompasses
all provisions. The New CBA is given PROSPECTIVE effect generally
since 253 and 253-A provides for an automatic renewal clause in
existing CBAs.
PURPOSE: To avoid creating a gap during which no
agreement would govern. Better for industrial peace if
effectivity of the CBA is longer.
[New Pacific Timber and Supply Co. Inc v. NLRC (2000)]
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Part VII
UNFAIR LABOR PRACTICE
4. ESTOPPEL
Standard Chartered Bank Union v. Confesor (2004)
The eventual signing of the CBA does not operate to estop the
parties from raising unfair labor practice charges against each other
Art. 247, LC
Art. 249
Unfair labor practices of labor organizations. It
shall be unfair labor practice for a labor
organization, its officers, agents or representatives:
a.
Note the difference between the wordings of Art. 248(a) and Art.
249(a).
Art. 248 (a) interfere, restraint, coerce
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Art. 248 (a) and Art. 249(a) are the general grant of protection. All
other cases of ULP enumerated under the said provisions are
derivatives of Art. 248(a) and Art. 249 (a)
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b.
he is not a
c.
a promise by the employee that upon joining a labor
organization, he will quit his employment
3. CONTRACTING OUT TO DISCOURAGE UNIONISM
Art. 248 (c), LC
Art. 255, LC
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.
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.
FROM
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a.
a representation by the employee that
member of a labor organization
a.
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7. EXACTION- FEATHERBEDDING
NATURE OF ACT
Interrogation
Scotys Dept. Store v. Micaller (1956)
Questioning of employees concerning union membership and
activities and disparaging remarks by supervisory employees made
in such away as to hamper the exercise of free choice on the part of
the employees, have been uniformly condemned as an unfair labor
practice.
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Art. 250
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.
Art. 251
Duty to bargain collectively in the absence of collective
bargaining agreements.
Run-Away Shop
Complex Electronics Employees Association v. NLRC (1999)
A RUNAWAY SHOP is defined as an industrial plant moved by
its owners from one location to another to escape union labor
regulations or state laws, but the term is also used to describe a
plant removed to a new location in order to discriminate against
employees at the old plant because of their union activities. It is
one wherein the employer moves its business to another location or
it temporarily closes its business for anti-union purposes. A
runaway shop in this sense, is a relocation motivated by antiunion animus rather than for business reasons.
8.03 UNFAIR LABOR PRACTICE; EMPLOYER AND LABOR
ORGANIZATION ACTS VIOLATIVE OF RIGHT TO COLLECTIVE
BARGAINING
1. VIOLATE DUTY TO BARGAIN
To employers
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Art. 252
Meaning of duty to bargain collectively.
Art. 253
Duty to bargain collectively when there exists a collective
bargaining agreement.
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Art. 212, LC
(e) "Employer" includes any person acting in the
interest of an employer, directly or indirectly. The
term shall not include any labor organization or any
of its officers or agents except when acting as
employer.
(f) "Employee" includes any person in the employ of
an employer. The term shall not be limited to the
employees of a particular employer, unless the
Code so explicitly states. It shall include any
individual whose work has ceased as a result of or
in connection with any current labor dispute or
because of any unfair labor practice if he has not
obtained any other substantially equivalent and
regular employment.
(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.
LABOR ORGANIZATION
Art. 249
The provisions of the preceding paragraph
notwithstanding, only the officers, members of
governing boards, representatives or agents or members
of labor associations or organizations who have actually
participated in, authorized or ratified unfair labor
practices shall be held criminally liable.
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xxx
CRIMINAL ASPECT
Art. 247
Concept of unfair labor practice and procedure for
prosecution
xxx
xxx
xx
Nueva Ecija I. Electric Coop. Inc. v. NLRC (2000)
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.
For this reason, we find it proper in this case to impose moral
and exemplary damages on private respondent.
PENAL REMEDIES
Art. 247
Concept of unfair labor practice and procedure for prosecution
xxx
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Part VIII
CONCERTED ACTIVITIES
6. LIMITATIONS
3. CONSTITUTION
Art. XIII. Section 3
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.
4.
4. STATUTORY
Art. 263
Strikes, picketing and lockouts.
(b) Workers shall have the right to engage in concerted activities
for purposes of collective bargaining or for their mutual
benefit and protection.
The right of legitimate labor organizations to strike and picket
and of employers to lockout,
consistent with the national interest, shall continue to be
recognized and respected.
However, no labor union may strike and no employer may
declare a lockout
on grounds involving inter-union and intra-union
disputes.
The Constitution and the law set limitation for the exercise of
the right to strike or lock-out. It is the most regulated activity.
Constitution
Labor Code
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9. DEFINITION
Art. 212(o)
"Strike" means any temporary stoppage of work by the
concerted action of employees as a result of an industrial or
labor dispute.
Strike - any temporary stoppage of work by the concerted action of
employees as a result of an industrial or labor dispute.
Labor dispute - any controversy or matter concerning terms or
conditions of employment or the association or representation of
persons in negotiating, fixing, maintaining, changing or arranging
the terms and conditions of employment, regardless of whether the
disputants stand in the proximate relation of employer and
employee. (Bukluran ng Manggagawa sa Clothman Knitting
Corporation-Solidarity Unions in the Phil v. CA, 2005)
Basic Concepts:
1. Initiating Party:
Employer: Lockout
Union: Strike
2. Cause: Labor dispute
An inter-union and intra-union dispute cannot be a valid
ground for a strike or lock-out since a labor dispute is
technically defined under Art. 212.
Welga ng Bayan (Political Strike) is not a valid strike under the
Labor Code since no labor dispute is involved. A welga ng
bayan for purpose of lowering oil price is not a valid strike
under the Labor Code but it may be upheld as a valid exercise
of right of speech. However, the employee may suffer the
consequence of abandonment of work
Wage distortion are not also a valid ground for a strike since
the law provides for a procedure to settle wage distortion
problems (see Ilaw at Buklod case)
3. Temporary in Nature
3. Employee-Employer relationship continues to exist. Mere
participation in a strike is not a ground for termination
10. NATURE AND PURPOSE
A strike is a coercive measure resorted to by laborers to enforce
their demands. The idea behind a strike is that a company engaged
in a profitable business cannot afford to have its production or
activities interrupted, much less, paralyzed.
(Phil. Can Co. v. CIR, 1950)
11. EFFECT ON WORK RELATIONSHIP
Although during a strike the worker renders no work or service and
receives no compensation, yet his relationship as an employee with
his employer is not severed or dissolved. (Elizalde Rope Factory,
Inc. v. SSS, 1972)
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ALLOWABLE STRIKES
TYPES
Art. 263
Art. 263
Strikes, picketing and lockouts.
(c) In case of bargaining deadlocks, the duly certified or recognized
bargaining agent may file a notice of strike or the employer may file
a notice of lockout with the Ministry at least 30 day before the
intended date thereof.
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3.
NO STRIKE CLAUSE
applicable only to economic strikes, not ULP strikes
A "no strike, no lock-out" provision in the Collective Bargaining
Agreement ("CBA") is a valid stipulation although the clause may be
invoked by an employer only when the strike is economic in nature
or one which is conducted to force wage or other concessions from
the employer that are not mandated to be granted by the law itself.
It would be inapplicable to prevent a strike which is grounded on
unfair labor practice.
(Panay Electric Co. v. NLRC, 1995; Malayang Samahan ng mga
Manggagawa sa Greenfield v. Ramos, 2000)
14.
a.
STRIKING PARTY
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ILLEGAL STRIKES
Art. 212(r)
"Strike-breaker" means any person who obstructs, impedes, or
interferes with by force, violence, coercion, threats, or intimidation
any peaceful picketing affecting wages, hours or conditions of work
or in the exercise of the right of self-organization or collective
bargaining.
Basis Illegality
In essence (based on Arts. 263-264), a strike is illegal if:
1) No good faith bargaining has been conducted yet
2) The strike is not based on valid grounds
3) Procedural requirements are not met
4) Any of the prohibited acts stated in Art. 264 is done
Phil. Diamond Hotel and Resort, Inc. v. Manila Diamond Hotel
Employees Union (2006)
Even if the purpose of a strike is valid, the strike may still be
held illegal where the means employed are illegal.
In this case, the union was never the sole and exclusive
bargaining agent (SEBA) of the bargaining unit. Its move to bargain
collectively for its members only tends to fragment the workers
interest. Likewise, The union still went on strike on Nov. 29, 1997
despite the fact that in a couple of days, on Dec. 1, 1997, there was
a scheduled conciliatory meeting between the parties.
Effect of Illegality
Effect of Illegal Strike (Art. 264):
1) To Union Officer loss of employment
2) To Union Member None (loss of employment ONLY IF illegal
acts are committed during such strike)
Effect of Illegal Lockout (Art. 264):
1) To Dismissed Employees reinstatement with full backwages
San Juan de Dios etc. v. San Juan de Dios (2004)
Despite the receipt of an order from then SOLE to return to
their respective jobs, the Union officers and members refused to do
so and defied the same. Consequently, then, the strike staged by
the Union is a prohibited activity under Article 264 of the Labor
Code. Hence, the dismissal of its officers is in order. The respondent
Foundation was, thus, justified in terminating the employment of
the petitioner Unions officers.
Stamford Marketing Corp. v. Julian (2004)
Article 264 of the Labor Code, in providing for the
consequences of an illegal strike, makes a distinction between
union officers and members who participated thereon. Thus,
knowingly participating in an illegal strike is a valid ground for
termination from employment of a union officer. The law, however,
treats differently mere union members. Mere participation in an
illegal strike is not a sufficient ground for termination of the services
of the union members. The Labor Code protects an ordinary, rankand-file union member who participated in such a strike from losing
his job, provided that he did not commit an illegal act during the
strike. Thus, absent any clear, substantial and convincing proof of
illegal acts committed during an illegal strike, an ordinary striking
worker or employee may not be terminated from work.
With respect to union officers, however, there is no dispute
they could be dismissed for participating in an illegal strike. Union
officers are duty- bound to guide their members to respect the law.
Nonetheless, as in other termination cases, union officers must be
given the required notices for terminating an employment, i.e.,
notice of hearing to enable them to present their side, and notice of
termination, should their explanation prove unsatisfactory. Nothing
in Article 264 of the Labor Code authorizes an immediate dismissal
of a union officer for participating in an illegal strike. The act of
dismissal is not intended to happen ipso facto but rather as an
option that can be exercised by the employer and after compliance
with the notice requirements for terminating an employee. In this
case, petitioners did not give the required notices to the union
officers.
Employment of Strike Breakers
Art. 264 (c)
No employer shall use or employ any strike-breaker, nor shall any
person be employed as a strike-breaker.
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Run-Away Shop
one wherein the employer moves its business to
another location or it temporarily closes its business for anti-union
purposes
Complex Electronics Employees Assoc v. NLRC (1999)
The Union anchors its position on the fact that Lawrence Qua
is both the president of Complex and Ionics and that both
companies have the same set of Board of Directors. It claims that
business has not ceased at Complex but was merely transferred to
Ionics, a runaway shop.
Held: The Union's contentions are untenable.
A runaway shop is defined as one wherein the employer
moves its business to another location or it temporarily closes its
business for anti-union purposes. A runaway shop in this sense, is
a relocation motivated by anti-union animus rather than for
business reasons.
In this case, however, Ionics was not set up merely for the
purpose of transferring the business of Complex. At the time the
labor dispute arose at Complex, Ionics was already existing as an
independent company.
The mere fact that one or more corporations are owned or
controlled by the same or single stockholder is not a sufficient
ground for disregarding separate corporate personalities.
Ionics may be engaged in the same business as that of
Complex, but this fact alone is not enough reason to pierce the veil
of corporate fiction of the corporation.
As very clearly established, the closure was triggered by the
customers' pull-out of their equipment, machinery and materials,
who were alarmed by the pending labor dispute and the imminent
strike by the union, and as a protection to their interest pulled-out
of business from Complex who had no recourse but to cease
operation to prevent further losses.
Burden of Economic Loss
Crownwell Commercial Employees & Laborers Union v. CIR (1964)
At the outset, two types of employees involved in this case
must be distinguished, namely, those who were discriminatorily
dismissed for union activities and those who voluntarily went on
strike.
Gen. Rule: Striking employees are entitled to reinstatement
whether or not the strike was the consequence of the employer's
unfair labor practice
Exception: Employees may be denied reinstatement because of (1)
unlawful conduct or (2) because of violence
Note: Refer to Philippine Diamond Case (2006)
Consolidated Labor Assoc. v. Marsman & Co. (1964)
We now come to the question of backpay. In an economic
strike, the strikers are not entitled to backpay, since the employer
should get the equivalent day's work for what he pays his
employees. During the time that the strike was an economic one,
complainants had no right to back pay. The Industrial Court could
not have made a finding of unfair labor practice with respect to
such time, as none had so far been committed. This being an unfair
labor practice case, it cannot, therefore, order reinstatement much
less back pay for that period.
On the other hand, even after the court has made a finding of
unfair labor practice, it still has the discretion to determine whether
or not to grant back pay. Such discretion was not abused when it
denied back wages to complainants, considering the climate of
violence which attended the strike and picket that the complainants
conducted. While the complainants ordered reinstated did not
actively take part in the acts of violence, their minatory attitude
towards the Company may be gathered from the fact that from the
very first day of the strike policemen had to patrol the strike zone in
order to preserve peace.
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EMPLOYER-EMPLOYEE RELATIONSHIP
De Leon v. National Labor Union (1957)
PICKETING; ABSENCE OF EMPLOYER-EMPLOYEE RELATIONSHIP
DOES NOT MAKE PICKETING ILLEGAL.-Picketing peacefully carried
out is not illegal even in the absence of employer-employee
relationship, for peaceful picketing is a part of the freedom of
speech guaranteed by the Constitution.
CURTAILMENT
Free Telephone Workers Union v. PLDT Co. (1982)
Indeed, it is now well-settled that peaceful picketing cannot be
restrained because the same is part of the freedom of speech but
petitioner fails to realize that the questioned July 16, 1965 order of
the Court of Industrial Relations did not refer to peaceful picketing.
In Mortera, supra, where the therein questioned order partly
declared that ". . . picketing under any guise and form is hereby
prohibited . . .," this Court ruled that the "order of the Court of
Industrial Relations prohibiting picketing must be understood to
refer only to illegal picketing, that is, picketing through the use of
illegal means.
In this case, the questioned (restraining) order should also be
taken as limited to the lifting of the picket lines which constituted
illegal picketing especially so because it expressly stated that the
petitioner union and its officers, agents or symphatizers "are hereby
directed to call off the strike declared on July 17, 1965, and to lift
the picket lines established in and around the premises of
respondent company's various offices and installations . . . . The
persons manning the picket lines in these places are hereby
enjoined from impeding and interfering with implementation of this
Order as well as from interfering in any manner with the operations
of respondent.
Nagkakaisang Manggagawa sa Cuizon Hotel v. Libron (1983)
The above restraining order had to be issued because as
contended in the petition, the order of the labor arbiter certainly
cannot be declared final and executory upon the mere issuance
thereof. That is manifestly in contravention of the law. Article 223
of the Labor Code is quite explicit on the matter, a period of 10 days
being granted either or both to the parties involved from receipt of
any order to appeal to the National Labor Relations Commission.
Moreover, the wholesale condemnation of peaceful picketing
is likewise clearly bereft of support in law. As pointed out in a very
recent decision decided this year, PAFLU v. CFI of Rizal: "It need not
be stressed that peaceful picketing is embraced in freedom of
expression. As emphatically declared in Philippine Commercial &
Industrial Bank v. Philnabank Employees' Association: 'From the
time of Mortera v. Court of Industrial Relations, a 1947 decision this
Court has been committed to the view that peaceful picketing is
part of the freedom of speech guarantee of the Constitution.'
Reference was made in such opinion to Associated Labor Union v.
Gomez.
RESTRICTIONS, INNOCENT THIRD PARTY RULE AND LIABILITIES
Liwayway Publishing Co. v. Permanent Concrete Workers Union
(1981)
At this juncture, it is well to cite and stress the
pronouncements of the Supreme Court on the right to picket. Thus,
in the case of PAFLU vs. Cloribel, the SC said:
"The right to picket as a means of communicating
the facts of a labor dispute is a phase of the freedom of
speech guaranteed by the constitution. If peacefully
carried out, it cannot be curtailed even in the absence of
employer-employee relationship.
The right is, however, not an absolute one. While
peaceful picketing is entitled to protection as an
exercise of free speech, we believe that courts are not
without power to confine or localize the sphere of
communication or the demonstration to the parties to
the labor dispute, including those with related interest,
and to insulate establishments or persons with no
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Part IX
LABOR INJUNCTION
Art. 254
No temporary or permanent injunction or restraining order in any
case involving or growing out of labor disputes shall be issued by
any court or other entity, except as otherwise provided in Articles
218 and 264 of this code.
Art. 212 (l)
LABOR DISPUTE includes any controversy or matters:
ART. 218
Powers of the Commission. The Commission shall have the
power and authority:
(e) To enjoin or restrain any actual or threatened commission of any
or all prohibited or unlawful acts or to require the performance of a
particular act in any labor dispute
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2)
3)
4)
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Provided, however,
such an injunction is not to enjoin the strike itself, but only unlawful
activities.
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The case before the NLRC neither involves nor grows out
of a labor dispute. It did not involve the fixing of terms or
conditions of employment or representation of persons
with respect thereto.
5)
c.
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Sec 5.
Injunctions. No temporary injunctions
or restraining order in any case involving or growing out
of a labor dispute shall be issued by any court or other
entity. On the other hand, the Office of the President,
the Secretary of Labor, the Commission, the Labor
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DISINI:
1. Labor Injunction is not the same as the injunction under the
rules of court.
2. General rule is stated in Art. 254
- The exceptions are in Art. 218 and Art. 264
- If you are filing injunction under Art. 218, the allegations of
the acts committed are different from the allegations of acts
committed under Art. 264. BUT the procedure to follow is the
same, Art. 218.
3. Procedure for issuance of TRO is different from procedure of
issuance of Injunction.
- The similarity is in the testimony given.
- But TRO is different because it is valid only for 20 days.
4. It is important to take note of the BOND filed and what other
remedies there are just in case the injunction or TRO is
wrongfully issued.
ART. 218
Powers of the Commission. The Commission shall have the
power and authority:
I.
--
II.
--
B.
C.
D.
E.
III.
a)
PROCEDURE for
Restraining Order
issuance
of
Temporary
Provided, however,
the complainant "shall also allege that, unless a temporary
restraining order shall be issued without notice,
- a SUBSTANTIAL and IRREPARABLE INJURY to complainant's
PROPERTY will be unavoidable;"
b)
c)
d)
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IV.
LABOR RELATIONS
V.
Other Remedies
But nothing herein contained shall deprive any party
having a claim or cause of action under or upon such
undertaking from electing to pursue his ordinary remedy
by suit at law or in equity:
VI.
SUMMARY NOTES:
Definition:
Labor Injunction an order or a writ of injunction commands a
person to do or not to do a particular act. It may be positive
(mandatory) or negative (prohibitory) command.
Note: This remedy will apply only if there exists a labor dispute
Gen. Rule: An injunction CANNOT be issued in any case involving or
growing out of labor disputes. (Art. 254)
Exceptions:
1) Art. 218 (e) to enjoin or restrain any actual or threatened
commission of any or all prohibited or unlawful acts or to require
the performance of a particular act in any labor dispute which, if
not restrained or performed forthwith, may cause grave or
irreparable damage to any party or render ineffectual any decision
in favor of such party.
2) Art. 263 (g) the SOLE or Commission may seek the assistance of
law enforcement agencies to ensure compliance with this provision
as well as with such orders as he may issue to enforce the same.
(IRR, Book V, Rule XXII, Sec. 14)
3) Ilaw at Buklod ng Manggagawa v. NLRC (1991) may issue
injunction to prevent any of the prohibited acts enumerated in Art.
264
Procedure for the issuance of injunction (Art. 218, e):
1) Observance of due process (Notice and Hearing)
2) Certain factors have been established by the Commission
[enumerated below]
(The following, if followed, allows for issuance of Injunction EX
PARTE)
3) Testimony under oath to the effect that substantial and
irreparable injury to complainants property will be unavoidable
4) Complainant must first file an undertaking with adequate
security sufficient to recompense those enjoined for any loss,
expense, or damage caused by the erroneous issuance of such
order (amount determined by NLRC)
Note: NLRC may delegate to LA the reception of evidence in
injunction hearings which is accessible to the parties. The LA, then,
submits its recommendation to the NLRC.
Factors (Art. 218, e):
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Part X
ALTERNATIVES TO USE OF ECONOMIC
FORCE: CONCILIATION AND ARBITRATION
AS MODES OF LABOR DISPUTE
SETTLEMENT
1. CONCILIATION
Art. 211.
Declaration of Policy.
(e)To provide an adequate administrative machinery for the
expeditious settlement of labor or industrial disputes;
1987 Constitution. Art. XIII, Sec. 3
x x x 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.
NATIONAL
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2. ARBITRATION
11.04 IN GENERAL
11.01 POLICY
11.03
CONCILIATION
AGENCY
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OF
DISPUTE
SUBJECT
TO
Take note that the NLRC has no authority to initiate. The NLRC only
comes into the picture when the secretary of labor or the President
certifies the case to them.
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President
President under the law, and this Court will not interfere in, much
less curtail, the exercise of that prerogative.
4. ARBITRATION AGENCIES
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At any rate, it must be noted that Articles 263 (g) and 264
of the Labor Code have been enacted pursuant to the
police power of the State, which has been defined as the
power inherent in a government to enact laws, within
constitutional limits, to promote the order, safety, health,
morals and general welfare of society (People vs. Vera
Reyes, 67 Phil. 190).
Article 263 (g) of the Labor Code does not violate the workers
constitutional right to strike. The foregoing article clearly does not
interfere with the workers right to strike but merely regulates it,
when in the exercise of such right, national interests will be
affected.
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4. ARBITRABLE ISSUES
1. DEFINED
Manila Central Line Corp. v. manila Central Line Free Workers
Union (1998)
Despite the fact that it agreed with the union to submit their
dispute to the labor arbiter for arbitration, petitioner questions the
jurisdiction of the labor arbiter to render the decision in question.
Petitioner contends that the policy of the law now is to encourage
resort to conciliation and voluntary arbitration as Art 250(e) of the
Labor Code provides.
This is what the parties did in this case. After the Board failed
to resolve the bargaining deadlock between parties, the union filed
a petition for compulsory arbitration in the Arbitration Branch of
the NLRC. Petitioner joined the petition and the case was
submitted for decision.
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Art. 261
Disputes covered in Voluntary Arbitration:
Gen. Rule (Art. 261):
- Those unresolved grievances arising from the interpretation or
implementation of the CBA;
- Also, those arising from the interpretation or enforcement of
company personnel policies
- Gross violations of CBA provision
Excpeption (Art. 262):
- If parties agree, VA may hear and decide all other labor disputes
including ULP and bargaining deadlock
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The award or decision shall contain the facts and the law on which
it is based. It shall be final and executory after ten (10) calendar
days from receipt of the copy of the award or its decision by the
parties. Upon motion of any interested party, the Voluntary
Arbitrator or panel of Voluntary Arbitrators or the Labor Arbiter in
the region where the movant resides, in case of the absence or
incapacity of the voluntary arbitrator or panel of voluntary
arbitrators for any reason, may issue a writ of execution requiring
wither the sheriff of the Commission or regular Courts or any public
official whom the parties may designate in the submission
agreement to execute the final decision, order, or award.
NATURE OF OFFICE AND FUNCTION
United Kimberly-Clark Employees Union v. Kimberly-Clark Phils.
Inc. (2006)
As a general proposition, an arbitrator is confined to the
interpretation and application of the collective bargaining
agreement. He does not sit to dispense his own brand of industrial
justice: his award is legitimate only in so far as it draws its essence
from the CBA.
The VA is not merely to rely on the cold and cryptic words on
the face of the CBA but is mandated to discover the intention of the
parties.
Nippon Paint Employees Union v. CA (2004)
In the case of Luzon Development Bank vs. Association of
Luzon Development Bank Employees, this Court ruled that a
voluntary arbitrator partakes of the nature of a quasi-judicial
instrumentality and is within the ambit of Section 9(3) of the
Judiciary Reorganization Act, as amended. As such, the decisions of
a voluntary arbitrator fall within the exclusive appellate jurisdiction
of the Court of Appeals.
6. AWARDS AND ORDERS
Art. 262-A
xxx
The award or decision shall contain the facts and the law on which
it is based. It shall be final and executory after ten (10) calendar
days from receipt of the copy of the award or its decision by the
parties.
Upon motion of any interested party,
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they are merely asking the arbitrator to fix for them what
would be the fair and just condition or term regarding the
matter in dispute that should govern further collective
bargaining relations between them.
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SUMMARY NOTES
Definition:
CONCILIATION process whereby the parties come
together to settle labor disputes.
ARBITRATION process whereby an impartial third
party is either chosen by the parties themselves
(voluntary) or chosen for them (compulsory) to aid in the
settlement of the labor dispute.
Agencies involved:
1) Conciliation Proceedings NCMB (Art. 212, c)
2) Arbitration Proceedings
if compulsory, by Labor Arbiter (initiated by
Sec. of Labor)
if voluntary, by a Voluntary Arbitrator (VA) or a
panel of VAs
Kinds of Conciliation meetings:
1) As part of the collective bargaining process (Art. 250)
2) As preventive mediation cases (IRR, Book V, Rule XXII,
Sec. 1)
3) As part of disputes involving notices of strike or lockout
(Art. 263, e)
Kinds of Arbitration Proceedings:
1) Compulsary (Art. 263, g) process of settlement of
labor disputes by a government agency which has the
authority to investigate and to make an award which is
binding on all the parties (PAL v. NLRC, 1989)
2) Voluntary (Art. 260) contractual proceedings where
the parties to a labor dispute select a judge (arbitrator) of
their own choice and by consent, submit their controversy
to him for determination.
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Compulsary Arbitration:
1) Applies to labor disputes in industries indispensable to
national interest
2) Initiated by either the Secretary of Labor / the
President of the Philippines
3) Under the jurisdiction of Secretary of Labor / NLRC
(only if certified by the Secretary of Labor to NLRC)
REQUISITES FOR A COMPULSARY ARBITRATION
(Art. 263, g):
- there exists a LABOR DISPUTE
- causing or likely to cause a STRIKE/LOCK-OUT
- in an INDUSTRY INDISPENDSABLE TO THE
NATIONAL INTEREST
The Secretary of Labor and Employment MAY:
1) assume jurisdiction over the dispute and decide it OR
2) certify the same to the Commission (NLRC) for
COMPULSORY ARBITRATION.
When sitting in a compulsory arbitration certified to by
the Secretary of Labor, the NLRC is:
- not sitting as a judicial court
- but as an administrative body charged with the duty to
implement the order of the Secretary.
(Union of Filipro Employees v. Nestle Philippines, 1990)
Effect of Assumption/Certification Order pursuant
to Art. 263 (g):
1) Strike/Lockout automatically enjoined
2) Striking/Locked Out employees shall immediately
return to work
3) Employer shall resume operations and readmit all
workers
Effect of Non-Compliance with
Assumption/Certification Order:
Immediate disciplinary action, including dismissal or
loss of employment status or payment by the locking-out
employer of back wages, damages and other affirmative
relief, even criminal prosecution against either or both of
them. (Art. 263, g)
Disputes covered in Voluntary Arbitration:
Gen. Rule (Art. 261):
- Those unresolved grievances arising from the
interpretation or implementation of the CBA;
- Also, those arising from the interpretation or
enforcement of company personnel policies
- Gross violations of CBA provision
Excpeption (Art. 262):
- If parties agree, VA may hear and decide all other labor
disputes including ULP and bargaining deadlock
Gross Violations of CBA, defined (Art. 261):
flagrant and/or malicious refusal to comply with the
economic provisions of the CBA
Grievance Machinery/Voluntary Arbitration
Procedure:
1) Regarding interpretation or implementation of the CBA,
the dispute is referred to the Grievance Machinery
Note: Procedure is pre-determined by the parties
2) If unresolved after 7 days, the dispute is put up for
Voluntary Arbitration.
Note: Must be agreed upon by the parties first
How Voluntary Arbitrator is selected (Art. 260):
1) As stated in CBA (or selection procedure of a VA),
preferably from a list of qualified VAs accredited by NCMB
2) If parties fail to select, the Board (NCMB) shall select
VA pursuant to selection procedure as stated in CBA
As per Art. 262-A:
Gen. Rule: VA must render an award or decision on a
labor dispute within 20 days from submission to
arbitration
Exception: Parties agree otherwise
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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.
As amended by RA 9481
(May 2007)
Requirements of Registration.
Any
applicant
labor
organization, association or
group of unions or workers 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.
b.
c.
d.
e.
a.
Fifty pesos (P50.00)
registration fee;
b.
(c)
(d)
(e)
The
additional
supporting
requirements shall be certified
under oath by the secretary or
treasurer of the chapter and
attested by its president.
Article 238
Cancellation of registration;
appeal.
The certificate of registration of
any
legitimate
labor
organization, whether national
or local, shall be cancelled by
the Bureau if it has reason to
believe, after due hearing, that
the said labor organization no
longer meets one or more of
the
requirements
herein
prescribed.
NEW PROVISION
ART. 234-A.
Chartering
and Creation of a Local Chapter.
A duly registered federation
or national union may directly
create a local chapter by issuing
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As amended
Cancellation of Registration.
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NEW PROVISION
ART. 238-A.
Effect of a
Petition for Cancellation of
Registration. A petition for
cancellation of union
registration shall not suspend
the proceedings for certification
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LABOR RELATIONS
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.
Article 239
As amended
a.
b.
c.
d.
e.
f.
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;
Failure to submit the
documents mentioned
in the preceding
paragraph within thirty
(30) days from adoption
or ratification of the
constitution and bylaws or amendments
thereto;
(a)
g.
h.
Misrepresentation, false
statement or fraud in
connection with the i.
adoption or ratification
of the constitution and
by-laws or amendments
thereto, the minutes of
ratification, and the list
of members who took j.
part in the ratification;
Misrepresentation,
false statements or
fraud in connection
with the election of
officers, minutes of the
election of officers, the
list of voters, or failure
to submit these
documents together
with the list of the
newly
elected/appointed
officers and their postal
addresses within thirty
(30) days from election;
1) NEW PROVISION
ART. 239-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, further, That
an application to cancel registration is
thereafter submitted by the board of
the organization, attested to by the
president thereof.
NEW PROVISION
ART. 242-A.
Reportorial
Requirements. The following
are documents required to be
submitted to the Bureau by the
legitimate labor organization
concerned:
(a)
Acting as a labor
contractor or engaging
in the "cabo" system, or
otherwise engaging in
any activity prohibited
by law;
(b)
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bargaining agreements
which provide terms
and conditions of
employment below
minimum standards
established by law;
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(c)
(d)
Article 245
As amended
Ineligibility of managerial
employees to join any labor
organization; right of
Ineligibility of Managerial
Employees to Join any Labor
Organization;
Right
of
Supervisory Employees.
NEW PROVISION
ART. 245-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.
Article 256 LC
As amended
Representation
issue
in
organized establishments.
Representation
Issue
in
Organized Establishments.
In organized establishments,
when a verified petition
questioning the majority status
of the incumbent bargaining
agent is filed before the
Department of Labor and
Employment within the sixtyday 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
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
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Article 257
As Amended
Petitions in unorganized
establishments.
Petitions in Unorganized
Establishments.
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NEW PROVISION
ART. 258-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 a
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 the MedArbiter act favorably on the
petition
Article 213
National Labor
Commission.
Relations
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As amended
National Labor
Commission.
Relations
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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. (As
amended by Section 5, Republic
Act No. 6715, March 21, 1989)
LABOR RELATIONS
branches and all its personnel,
including the 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 Clerk for its
first division and seven (7)
other Deputy Executive Clerks
for the second, third, fourth,
fifth, sixth, seventh and eighth
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.
The Commission and its eight
(8) divisions shall be assisted by
the Commission Attorneys in its
appellate and adjudicatory
functions whose term shall be
coterminous
with
the
Commissioners with whom they
are assigned. The Commission
Attorneys shall be members of
the Philippine Bar with at least
one (1) year experience or
exposure in the field of labormanagement relations. They
shall receive annual salaries and
shall be entitled to the same
allowances and benefits as
those falling under Salary Grade
twenty-six (SG 26). There shall
be as many Commission
Attorneys as may be necessary
for the effective and efficient
operation of the Commission
but in no case more than three
(3) assigned to the Office of the
Chairman
and
each
Commissioner.
No Labor Arbiter shall be
assigned to perform the
functions of the Commission
Attorney nor detailed to the
office of any Commissioner."
Article 214
As Amended
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Article 215
Appointment
Qualifications.
As Amended
and
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Appointment
Qualifications.
and
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LABOR LAW II
rules and regulations.
The Secretary of Labor and
Employment
shall,
in
consultation with the Chairman
of the Commission, appoint the
staff and employees of the
Commission and its regional
branches as the needs of the
service may require, subject to
the Civil Service Law, rules and
regulations, and upgrade their
current salaries, benefits and
other
emoluments
in
accordance with law. (As
amended by Section 7, Republic
Act No. 6715, March 21, 1989)
Article 216
LABOR RELATIONS
region where they are residents
shall be deemed appointed
thereat.
The
Chairman
of
the
Commission shall appoint the
staff and employees of the
Commission and its regional
branches as the needs of the
service may require, subject to
the Civil Service Law, rules and
regulations, and upgrade their
current salaries, benefits and
other
emoluments
in
accordance with law.
As Amended
Salaries,
Benefits
Emoluments.
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Subject Committee
Information Management
Committee