CAGAYAN STATE UNIVERSITY

COLLEGE OF LAW

LABOR RELATIONS LAW

Second Semester, 2020-2021
SYLLABUS

ATTY. MARIA LUISA J. CEPEDA

REFERENCES

 1987 Constitution of the Philippines

 P.D. No. 442 (otherwise known as the Labor Code of the Philippines), as amended [RA
No. 9347 (July 27, 2006); RA No. 9481 (May 25, 2007); RA No. 10741 (January 12, 2016);
as renumbered by DOLE Department Advisory No. 01-Series of 2015)
 Book V, Omnibus Rules Implementing the Labor Code as amended by D.O. No. 40-Series
of 2003; DO 40-B-03; DO 40-F-03; DO 40-H-13 (October 13, 2012); DO 40-I-15
(September 7, 2015); Ref: (DO No. 9 (June 21, 1997); DOLE DO No. 107 (Series of 2010)
Re: SENA (Guidelines on the Simple Entry Approach Prescribing a 30-day Conciliation-
Mediation Services for all Labor and Employment Cases)

I. INTRODUCTION/ OVERVIEW
A. Definitions/Classification
1. Labor Law
2. Labor Standards
3. Labor Relations
4. Welfare Legislation

B. 1. Justification: Social Justice- Const. Art II, Section 10; Article XIII, Secs. 1-3;
2. Foundation or basis: Police Power of the State
3. Ultimate Goal: Industrial Peace- Const., Art XIII, Sec. 3, par. 3

C. 7 Cardinal Rights of Workers. Guaranteed by the Constitution – 1987 Const., Art XIII,
Sec.3, pars. 1,2

D. Management Prerogative- Rule- 1987 Const., Art XIII, Sec 3., pars. 3,4
1. Private sector; plays an indispensable role- 1987 Const. Art II, Sec 20

University of Immaculate Conception Inc. v Sec of Labor, UIC Employees Union,

Lelian Cocon & 11 others, G.R. 151379, January 14, 2005

E. Balancing of Interests- 1987 Constitution, Art XIII, Sec 3, par.4

 RULE: “When the conflicting interests of labor and capital are weighed on the scales
of social justice, the heavier influence of the latter must be counterbalanced by the
sympathy and compassion; the law must accord the underprivileged woker x x x if he
is to be given the opportunity- and the right- to assert and defend his cause x x x
with which he can negotiate on an even plane.”

REASON: Labor is not a mere employee of Capital but its active and equal partner.

Fortunato R. Baron plus 2 others v EPE Transport, Inc., G.R. 202645; Aug. 5, 2015

II. STATE POLICY: WORKER EMPOWERMENT- Labor Relations

A. Voluntary/Democratic Method of Dispute Settlement – 1987 Const., Art XIII, Sec. 3,

par.3; Labor Code, Art. 218 (211) A(a) and B; Art. 3

 Estate of Nelson R. Dulay (repress. by Merridy Jane Dulay) v Aboitiz Jebsen Maritime,
Inc. 672 S166 (June 2012)

B. Trade Unionism- 1987 Const., Art III, Sec 8; Art. 218 (211) A (b)(c); Art. 219(212) (g);
DO 40-03 Book V, Rule VI, Sec 1
Def. Trade Union Activities- Art 285 (270) (a), par 2

C. Worker Enlightenment – Art. 218 (211) A (d); Art. 250 (241) (p), Art. 292 (277) (a)
D. Adequate Machinery for Expeditious Dispute Settlement -1987 Const., Art. III, Sec
16; Art 218 (211) A€, 219 (212) (a)(b)(c)(d)

1. National Labor Relations Commission; Labor Arbiters -Arts. 219(a), 220 (213),
224 (217)
2. National Conciliation Mediation Board – Art. 219 (212) (c ); 261 (250) (c ) (d) (e)
3. Bureau of Labor Relations; Labor Relations Division- Arts. 219(212) (b), 232 (226)
4. Tripartite Voluntary Arbitration Advisory Council – Arts. 219 (212) (a); (260-262)
273-275
5. Administrative Intervention for Dispute Avoidance (AIDA)- DOLE Circ 1-06
6. Single Entry Approach (SENA) – DOLE D.O. No. 107 (Series of 2010)

E. Industrial Peace- Art. 218 (211) A(f); 292 (277) (g) 1987 Const., Art XIII, Sec. 3, par 3
F. Worker participation in Decision and Policy Making Processes affecting rights, duties,
and welfare- Art. 218 A (g); Art 267 (255), par 2; Art 292 (277) (g); 1987 Const., Art
XIII, Sec 3, par2, 3rd sentence

III. RIGHT TO SELF-ORGANIZATION

1. ILO Convention No. 87 (Freedom of Association & Protection of Right to Organize,

1948)
 ILO Convention No. 98 (Application of the Principles of the Right to Organize and
Bargain Collectively, 1949)

2. U.S. Laws

a. National Labor Relations Act (Wagner Act)

b. US Labor-Management Relations Act of 1947 (Taft-Hartley Act)

3. Philippine sources
a. 1987 Const., Art II, Sec 18; Art III, Sec 4 and Sec 8; Art. XIII, Sec 3; Art IX(B), Sec
2(5);

 Nueva Ecija Electric Coop (NEECOI) Employees Asso. Pres. Rodolfo Jimenez (plus 5
others) v NLRC, Jan. 24, 2000, G.R. No 116066

b. Labor Code – Arts. 253- 254 (Arts. 243-244)

c. Pre-Labor Code
i. Commonwealth Act No. 103
ii. Industrial Peace Act (R.A. No. 875 of 1953)

B. Extent and Scope of Right- Art 257 (Art 246)

 Alexander Reyes (plus 140 others) v Hon. Trajano & Tri-Union Employees Union, 209
SCRA 484 (92)

 Kapatiran sa Meat & Canning Division (TUPAS No. 1027) v Hon. Calleja & Meat &
Canning Div. New Employees & Workers – ULO, 162, SCRA 367 (88)

 Pan-Am World Airways, Inc. v Pan-Am Employees Assn., 27 SCRA 1202 (69)

- Right to self-organization: not limited to unionism; includes forming or

joining associations for mutual aid and protection and for other legitimate
purposes (Note: No provision in the Labor Code which states that employees
with definite employers may form, join, or assist unions only and not
workers’ associations)

 Samahan ng Manggagawa sa Hanjin Shipyard rep. by Pres. Alfie Alipio v BLR & Hanjin
Heavy Ind. & Construction Co., G.R. No. 211145; Oct. 14, 2015

C. Covered Employees/ Workers- 1987 Const., Art III, Sec 8; Art. XIII, Sec 3; Book V, Rule
II, Sec 2

1. Rule- Art 253 (243); Book V, Rule II, Sec 2

  FEU- Dr. Nicanor Reyes Medical Foundation Inc. v Hon.Trajano & AFW, 152 SCRA 725
(87)

2. Government Corporate employees- Art. 254 (244); Const. Art IX-B, Sec 2(1)(5), C.S.
Circular, E.O. 180; Book V, Rule II, Sec 2, par 1

a. Limitation on GOCCS (chartered or non-chartered) to negotiatie on economic

terms- RA 10149; EO No. 203 (Mar. 22, 2016)

 GSIS Family Bank Employees Union v Sec. Cesar Villanueva (Chair of the Governance
Commission for GOCCs under the OP), et al., G.R. 210773, Jan. 23, 2019
 See: DPWH Region IV-A v COA, G.R. 237987, March 19, 2019
 See: Dissenting Opinion, J. Leonen, DBP v COA, G.R. 210838, July 3, 2018

3. Supervisory employees- Art 255 (Art 245), Art 219(m); Book V, Rule I, Sec1 (xx), (hh),
(nn)

 Holy Child Catholic School v Hon. P. Sto Tomas & HCC-TELU-PIGLAS, G.R. 179146, July
23, 2013
 See: Tagaytay Highlands International Golf Club, Inc. v Tagaytay Highlands Employees
Union, GR. 142000, Jan 22, 2003

4. Aliens- Art 284-285 (Arts 269-270), Book V, Rule 2, Sec 2, par 1, 3 rd sentence
5. Security Guards -E.O. 111 (Dec 24, 1986)

 Manila Electric Co. v Sec., STEAM & FLAME, 197 SCRA 275 (91)

D. Excluded Employees/Workers

1. Managerial Employees- 255(245), See: RA 9481 (May 25, 2007); 82; 219(m); Book V,
Rule II, Sec. 2; Rule I (hh), (xx), (nn)

 Paper Industries Corp v Hon. Laguesma, PICOP-BISLIG, Supervisory and Technical Staff
Employees Union, ALU & AFW, G.R. 101738, April 12, 2000
 See: A.D. Gothong Mfg, Corp, Employees Union- ALU, v Sec Confesor, G.R. 1136938, Nov
16, 1999

2. Confidential Employees: Doctrine of Necessary Implication- what is implied in a statute

is as much part thereof as that which is expressed.

 Tunay na Pagkakaisa ng Manggagawa sa Asia Brewery v Asia Brewery Inc., G.R. 162025;
Aug 2, 2010
  See: Pepsi-Cola v Sec of Labor & Pepsi-Cola Supervisory Employees Organization- UOEF,
312 S 104 (99)
 See also: Standard Chartered Bank Employees Union v SCB, G.R. 161933, April 22, 2008

3. Workers-Members of a Cooperative
 CENECO v DOLE Sec & CURE, 201 SCRA 584 (91)

4. Employees of International Organizations

 International Catholic Migration Commission v Hon, Calleja & TUPAS (WFTU), 190 SCRA
130(90)

5. Non-employees- 253 (243) (last sentence); Book V, Rule II, Sec 2, par 3
 Singer Sewing Machine Co. v Hon. Drilon, MA Chagulle & SIMACUB, 193 SCRA 270 (93)

E. Party Protected

 Mactan Workers Union v Don Ramon Aboitiz, Pres. Cebu Shipyard, ALU, 45 SCRA 577
(72)

F. Sanctions for Violation of Right- 257 (246); 259 (248) (opening clause, 1 st par, 2nd par); 260
(249) (opening clause 1st and 2nd par); 303-304 (288-289) (in rel. to 264(272); Book V, Rule XXII,
Sec 15

IV. LABOR ORGANIZATION

A. Policy- 218 A(b) (c) (g); 218B; Book V Rule VI, Sec 1
B. Definition: Labor Organizations/Unions- 218 A(b) (c)(g); 219(g); 219(h); 219(i); 219(j);
Book V, Rule I, Sec 1 (cc) (ee, (ff), (zz) (ccc); (t); (i); DO 40-B. 03

1. Labor Organization- 219 (g); Book V, Rule I, Sec 1 (cc)

 Union- Book V, Rule I, Sec 1 (zz)

 Workers Association – Book V, Rule I, Sec

2. Legitimate labor organization – 219 (h); Book V, Rule I, Sec 1 (ee)

Legitimate workers’ associaton- Book V, Rule I, Sec 1 (ff)

3. Company Union – 219 (i); 259 (248) (d)

4. Exclusive bargaining representative- 219 (j); Book V, Rule I, Sec 1 (t)
5. Local Chapter – 241 (234-A) Note: Formerly referred to as chartered local
Book V, Rule I, Sec 1 (i); now Local Chapter per Art. 241 (234A)
C. Union Rationale
Valentin Guijarno plus 18 others v CIR & Central Santos Lopez Co., Inc. & USW Union –
ILO, 52 S 307 (73)

D. Government Regulation: Implementing the Policy on Trade Unionism0 Const., Art III,Sec
16; Art 218 A(b)(c); Book V, Rule II, Sec 1; Rule VI, Sec 1

Electromat Manufacturing & Recording Corp. v Hon. Lagunzad, Nagkakaisang Samahan

ng Manggagawa ng Electromat- WASTO, GR 172699, 27 July 2011

1. Union Registration: Procedure

a. Requirements- 240 (234), (as amended by RA 9481, May 25, 2007; 241(234-A);
244(237); 242(235) [219(b)]; See: Book V, Rule III, Sec 2

i. 20% Membership requirement- 240 (234) ©

Takata (Phil) Corp. v BLR & SALAMAT, GR 196276, June 4, 2014

See: Mariwasa Siam Ceramics, Inc. v Secretary of Labor, GR 183317, Dec
21, 2009

2. Registration Proceeding- Book V, Rule I, Sec 1(qq)

1st mode: issuance of union registration- 240 (234); 241 (234A), Book V, Rule III, Sec
2(A)

2nd mode: Union Affiliation- 241 (234A), Book V, Rule I, Sec 1(a); Rule III, Sec2€ as
amended
Note: Incorporated in the Labor code as Art 240A(234) (now 241) by RA 9481

a. Effect of affiliation with a National Union – 241(234A); RA 9481, Sec 8 (Art

255/245), Sec 9 (Art 256/245A)

Ergonomic Systems Phil. Inc. v Emerito Enaje plus 90 others, GR No. 195163, Dec
13, 2017

Note: “…as separate and voluntary associations, local unions do not owe their
creatin and existence to the national federation to which they are affiliated but
to the will of their members. 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…” citing Phil. Skylanders, Inc. v
NLRC, 426 Phil 35(2002)
 b. Action on Application/ BLR duty : not merely ministerial- 242 (235). 243(236);
Book V, Rule IV, Secs 4-7

Progressive Dev. Corp- Pizza Hut v Hon. Laguesma & NLM-Katipunan, 271 SCRA
593 (97)

c. Effect of Registration – Book V, Rule IV, Sec 8

Acquisition of Legal Personality/ Statutory Paradigm- 240 (234), 241(234A), Book

V, Rule III, Sec 2E as amended by DO-F-03 (October 30, 2008)

SMC Mandaue Packaging Products v Mandaue Packing Products; San Miguel

Monthlies RAF Union- FFW, GR 152356,, Aug 16, 2005

d. Rights of Legitimate Labor Organization – 251 (242)

San Miguel Foods, Inc. – Cebu B-Meg Feed Plant v Hon. Laguesma & IBM, 263 S
90 (96)

Jerry Acedera, et al., v International Container Terminal Services, Inc. GR 146073,

January 13, 2003

e. Rights of Workers & Employers Organizations

Minette Baptista, plus others v Rosario Villanueva and 15 other union members,
GR 194709, July 31, 2013

f. Effect of Non-Registration – Book V, Rule IV, Sec 8

Eden Gladys Abaria, et al., v NLRC, Metro Cebu Comm. Hospital, the UCCP et al.,
GR 154113 (Dec 7, 2011)

3. CANCELLATION OF UNION CERTIFICATE OF REGISTRATION – 245 (238), 246 (238A),

237 (239), Art 248 (239A), 250 (241)(j) last 2 par,; 256 (245A) (See RA 9481, May 25,
2007)

a. Effect of a petition for cancellation of union registration – 246 (238A)

Heritage Hotel Manila v Pinag-isang Galing at Lakas ng mga Manggagawa sa

Heritage Manila (PIGLAS-Heritage), GR 177024, Oct 30, 2009

Heritage Hotel Manila v NUHWRAIN-HHMSC, GR 178296, January 12, 2011

 b. Grounds for cancellation of union registration – 247- 248 (239, 239A)

De Ocampo Memorial School, Inc. v Bigkis Manggagawa, GR 192648, March

15, 2017

See: Asian Institute of Management v AIM Faculty Assoc., GR No. 207971

January 23, 2017

See again: Takata Corp (Phil) v BLR & Salamat

E. International Acitvities of Union – Prohibition and Regulation – 284-286 (269-271)

F. Union – Member Relations – 250 (241); 260 (249)(a)

UST Faculty Union Gil Gamilla (plus 21 others) v Hon. Bitonio & Edgardo Mariño plus 14
other respondents, GR 131235, Nov. 16, 1999

UST v Samahang Manggagawa ng UST, GR 169940, Sept 18, 2009

1. Admission and Discipline of Members – 260 (a) (249); Art 250 (241) (a)(e); 292 (277)
(a) (c)

See: RA 7637, September 22, 1992, which repealed RA 1700, the Anti-Subversion Act

Dolores Villar plus 8 others v Hon. Inciong, 121 S 444 (83)

See: Francisco Salunga v CIR, San Miguel Brewery Inc., & NABAILUP-PAFLU, 21 S 216
(67)

a. Due Process

Paulino Bugay v Kapisanan ng mga Manggagawa sa MRR , 4 S 287 (62)

b. Distinguish between ground/s for disqualification from membership and

ground/s for removal from the union.

United Polyuresius, Inc. Ernesto Uy Soon v Marcelino Pinuela GR 209555, July 31,
2017

2. Election of Officers – 250 (241) (c)(f)(k); Book V, Rule XII

a. Qualifications/Disqualification- 250 (c)(f)

Atty. Allan S. Montano v Atty. Ernesto C. Verceles, GR No. 168583, July 26, 2010
 b. Manner of Election- 250 (c)
i. Direct election
ii. Secret ballot

c. Tenure – 250 (c)

d. Compensation – 250 (k)
e. Who may vote – 250 (c)

Eduardo Tancinco plus 7 others v Hon. Calleja, Edwin Lacanilao plus 5 others, 157
S 203 (88)

Ricardo Manalad v Hon Trajano, Pablo Babula, 174 S 322 (89)

See: Kapisanan v Hon Trajano, Catalino Silvestre 134 S 236 (85)

f. Shop Steward

Teodorico Miranda, Jr v Asian Terminals, Inc. GR 174316; June 23, 2009

See: Sta Rosa Coca-Cola Plant Employees Union v CCBP, GR 164302-03, January
24, 2007

3. Major Policy Matter- 250 (241) (d)

Fortunato Halili v CIR, Halili Bus Drivers & Conductors Union, 136 S 112 (85)
See agaim: Eden Gladys Abaria, et al., v NLRC, Metro Cebu Comm. Hospital, GR
154113, Dec 7, 2011

See: National Union of Bank Employees (NUBE) v Philnabank Employees Association

(PEMA) and PNB, GR 17487, Aug 12, 2013

4. Union Funds- 250 (241) (a,b,c,g,h,I,j,k,l,m,n,o); 280(265); Book V, Rule XIII

a. Payment of Attorneys Fees- Art 288(222)(b) , Art 250 (241) (g,h,m,no)

Pacific Banking Corporation v Hon. Clave & Juanito Saavedra, 128 S 112 (84)

See: Kaisahan at Kapatiran ng mga Manggagawa at Kawani sa MWC- East Zone

Union & Eduardo Borela v Manila Water Co. Inc., GR 174179, Nov 16, 2011