1.

The requirements for the issuance of certificate of registration to legitimate labor

organizations acquiring legal personality and entitlement to the rights and privileges granted
by law are the following:

a. In case the applicant is an independent union, the names of all its members comprising
at least thirty percent (30%) of all the employees in the bargaining unit where it seeks to
operate.
b. If the applicant union has been in existence for two or more years, copies of its annual
financial reports.
c. Five 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.
d. None of the above.

RATIONALE: Art. 240 of RA No. 9841 provides the following requirements in securing
certificate of registration: (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.
(Page 520)

2. The following are essential functions of a Labor Union, EXCEPT:

a. To secure better working conditions of its members, advancing their interest in the areas
of wages and other terms of employment;
b. To empower its members to go against their employer;
c. To support workers in exercising their right of collective bargaining and enjoying other
rights and privileges;
d. To promote social justice within an economic set up dominated by capitalism, and vindicate
workers’ just claims to human dignity and their due share in the benefits accruing in the
interplay of the modern social system of production, distribution and consumption.

RATIONALE: A labor union is created for the benefits of its members and not for the purpose
of destroying or controlling the business of their employer. (Page 521)

3. A "legitimate labor organization" refers to any labor organization in the private sector
registered or reported with the DOLE, in accordance with the Labor Code and its
implementing rules. It includes any branch or local thereof. Which of the following can acquire
legal personality but cannot create a local chapter?

a. Federations
b. National unions
c. Trade union centers
d. All of the above.

RATIONALE: Article 234 now includes the term trade union center, but interestingly, the
provision indicating the procedure for chartering or creating a local or chapter, namely Article
234-A, still makes no mention of a "trade union center." Also worth emphasizing is that even
in the most recent amendment of the implementing rules, there was no mention of a trade
union center as being among the labor organizations allowed to charter. Therefore, 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. (San
Miguel Corp. Employees Union-PTGWO v. San Miguel Packaging Products Employees Union
- PDMP, GR No. 171153, Sept 12, 2007) (Page 522)
4. In the creation of a labor organization through chartering, which of the following is
required?

a. Compliance with the documentary requirements and the submission of the same to the
DOLE Regional Office for registration purposes.
b. Issuance of a charter certificate by a federation or national union indicating its
establishment.
c. Certificate of Registration issued by the DOLE Regional Office.
d. All of the above

RATIONALE: Establishing a union through chartering under Art. 241 [234-A] simply requires
the issuance by a federation or national union of a charter certificate which, upon such
issuance, automatically becomes a local chapter/chartered local of the federation or national
union with accompanying grant of limited legal personality to file a petition for certification
election to be certified as SEBA. It subsequently acquires full legal personality automatically
upon the submission of the documents, without the issuance of a Certificate of Registration
by the DOLE Regional Office. (Page 523)

5. The following statements are true, EXCEPT for one:

a. If the union’s application is infected by falsification and serious irregularities, a union

should be denied recognition as a legitimate labor organization.
b. It is the ministerial function of the BLR to grant recognition to a labor organization
after the necessary papers and documents for registration have been filed therewith.
c. After a certificate has been issued, the propriety of the labor organization’s registration
could be assailed directly, through cancellation of registration proceedings in accordance
with Articles 245 [238] and 247 of the Labor Code.
d. After a certificate has been issued, the propriety of the labor organization’s registration
could be assailed indirectly by challenging its petition for the issuance of an order for
certification election.

RATIONALE: It is NOT the ministerial function of the BLR to grant recognition to a labor
organization after the necessary papers and documents for registration have been filed
therewith. It becomes MANDATORY for the BLR to check if the requirements under Article
240 [234] of the Labor Code have been complied with. (Page 524)

6. What is the effect of incorporation of a labor organization created under the Corporation
Law?

a. It makes it a Legitimate Labor Organization since it is created under the Corporation Law
as a non-stock corporation and there is already an issuance of Certificate of Incorporation by
the Securities and Exchange Commission.
b. It does not make it a legitimate labor organization, the issuance of Certificate of
Incorporation by the Securities and Exchange Commission is inconsequential and does
not confer rights and privileges granted by law to legitimate labor organizations.
c. It is a Legitimate Labor Organization, after all it is created under the Corporation Law.
d. None of the above.

RATIONALE: As held in Philippine Land-Sea-Air Labor Union vs. CIR, the creation of a labor
organisation under the Corporation Law as a non stock corporation and the consequent
issuance of a Certificate of Incorporation by the SEC are inconsequential as they do not make
it a “legitimate labor organisation”. It does not confer the rights and privileges accorded by
law to legitimate labor organisations. (Page 525)

7. Which of the following are labor organizations that are not required to register to become
a legitimate labor organization?

a. Worker's Association
b. Trade Union Center
c. Government Employees’ Organization
d. All of the Above
e. None of the Above

RATIONALE: Article 240 as amended by RA 9481 makes specific reference to the following
organizations which may register as legitimate labor organizations: federation, national
union, industry union, trade union center and independent union. In addition to these, the
following are likewise required to register: local chapter/ chartered local, worker's association
and government employees' organization. (Page 526)

8. The following are the requirements for application for registration of an independent labor
union. Which one is not?

a. The minutes of the organizational meeting(s) and the list of employees who participated in
the said meeting.
b. The names of all its members comprising at least 10% of the employees in the
bargaining unit.
c. The annual financial reports, if the applicant has been in existence for one or more years,
unless it has not collected any amount from its members, in which case, a statement to this
effect shall be included in the application.
d. The name of the applicant labor union, its principal address, the names of its officers and
their respective addresses, approximate number of employees in the bargaining unit where it
seeks to operate and accompanied with a statement that it is not reported as a local chapter
of any federation or national union.

RATIONALE: The requirement is the names of all its members comprising at least 20% of the
employees in the bargaining unit. (Page 527)

9. In independent unions, at least what percentage of all employees in the bargaining unit
where it seeks to operate should support its application for registration?

a. 30%
b. 50%
c. 20%
d. 10%
e. None of the above

RATIONALE: The distinction in Article 240 (234) applies only to "independent union" of the
rule that at least 20% of all the employees in the bargaining unit where it seeks to operate
should support its application for registration. Hence, it is now clarified that the application
for registration of a federation, national union, industry union or a trade union center need
not comply with the said 20% requirement. (Page 528)

10. Legitimate workers association is defined as:

a. Association of workers organized for the mutual aid and protection of its members for any
legitimate purpose other than collective bargaining.
b. Association of workers that are legitimately hired for the purpose of working in a specific
field.
c. Association of workers duly registered with the BLR of the DOLE in accordance with
the Labor Code and its implementing rules.
d. All of the Above
RATIONALE: Rule III, Sections 2-C and 2-D, of the Rules to Implement the Labor Code
defines legitimate labor organisations as an association of workers duly registered with
the BLR of the DOLE in accordance with the Labor Code and its implementing rules.
(Page 529)
11. Where will the application for registration of a worker’s association operating in only one
region be filed?

a. Bureau of Labor Relations of the region where the application is filed

b. DOLE Regional Office where the worker resides
c. DOLE Regional Office where the applicant principally operates
d. Labor Relations Division Office

RATIONALE: Sections 2-A, 2-C and 2-E of Rule III, Book V of the Rules to Implement the
Labor Code states that, the application for registration of workers association operating in
only one region should be filed with the DOLE Regional Office where the applicant principally
operates. (Page 530)

12. How are labor organizations or workers' associations legitimated?

a. Upon forming of the organization or association by the employees.

b. Upon the recognition of the employer of said organization or association.
c. Upon acquiring legal personality through the issuance of a Certificate of
Registration from the DOLE.
d. Upon filing of the application for registration with the DOLE.

RATIONALE: The purpose of legitimizing labor organizations or workers' associations is to

protect employees from unscrupulous or fly-by-night unions whose sole purpose is to unduly
control union funds or use the labor organizations for illegitimate purposes. (Page 531)

13. Are federations and national unions allowed to participate in mergers ?

a. No because merger of unions is limited to independent labor unions, local chapters and
workers associations.
b. No because the regional Notice of merger is filed with the regional office that issued the
certificate of registration which does not cover federations and national unions
c. Yes because the federations and national unions are covered by section 8 rule III
Book V of the Rules to implement the labor code
d. Yes because the federations and national unions are private organizations.

RATIONALE: Yes because the federations and national unions are covered by section 8 rule
III Book V of the Rules to implement the labor code. The requirement of the notice of merger
is not a hindrance because the notice of merger is to be filed and recorded by the BLR for
federations and national unions while for independent labor unions, local chapters and
workers associations notice of merger is filed with the regional office that issued the
certificate of registration. (Page 532)

14. What is/are the effect/s of the merger of labor organizations?

a. The legal existence of the absorbed labor organization(s) ceases while the legal existence
of the absorbing labor organization subsists.
b. Consequently, the rights, interests, and obligations of the absorbed labor organizations
are transferred to the absorbing labor organization.
c. However, the rights, interests, and obligations of the absorbed labor organizations are not
transferred to the absorbing labor organization.
d. Both A & B.
e. Both A & C.

RATIONALE: Sec. 10, Rule IV, Book V, of the Rules to Implement the Labor Code states that
where there is a merger of labor organisations, the legal existence of the absorbed labor
organisation(s) ceases, while the legal existence of the absorbing labor organisation subsists.
Consequently, all the rights, interests, and obligations of the absorbed labor organisations
are transferred to the absorbing organisation. (Page 533)
15. Which of the following is not true regarding consolidation of labor organizations?

a. Notice of consolidation of federations or national unions shall be filed with and recorded
by the BLR.
b. The notice of consolidation, including all the accompanying documents, should be
certified under oath by the union’s secretary or treasurer, as the case may be, and attested
to by its President.
c. 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.
d. Where there is consolidation, the legal existence of the consolidating labor
organizations may still continue.

RATIONALE: Where there is consolidation, the legal existence of the consolidating labor
organizations shall cease and a new labor organization is created which shall acquire all the
rights, interests, and obligations of the consolidating labor organizations. (Page 534)

16. Which of the following are true?

I. The notice of change of name of a labor organization shall be accompanied by the proof of
approval or ratification of the change name and by the amended Constitution and By-Laws.
II.The notice of change of name, including all the accompanying documents, should be
certified under oath by the union’s Vice-president and and attested by the President.
III. The change of name of a labor organization shall not affect it’s legal personality. All the
rights and obligations of a labor organization under its old name shall continue to be
exercised by the labor organization under its new name.
IV. The Certificate of Registration and the Certificate of Creation of a Local Chapter issued to
the labor organization which has changed its name shall bear a new registration number
different from the original certificate.

a. I and II only
b. I, II and III
c. C.I and III only
d. II, III and IV
e. E.All of the above.

RATIONALE: Under the Rules to Implement the Labor Code, it states that (1) The notice of
change of name of a labor organization shall be accompanied by the proof of approval or
ratification of the change name and by the amended Constitution and By-Laws; and (2) The
change of name of a labor organization shall not affect it’s legal personality. All the rights and
obligations of a labor organization under its old name shall continue to be exercised by the
labor organization under its new name. (Page 535)

17. It is defined as a labor organization in the private sector operating at the enterprise level
that acquired legal personality through registration with the DOLE Regional Office in
accordance therewith.

a. chartered local
b. labor relations
c. collective bargaining agreement
d. trade union

RATIONALE: Under the old provisions of the Rules to Implement the Labor Code, which were
implemented prior to RA 9481, “local chapter” is referred to as “chartered local” and was
defined as a labor organisation in the private sector operating at the enterprise level that
acquired legal personality through registration with the DOLE Regional Office in accordance
therewith. (Page 536)
18. In the series of amendments to the Rules to Implement the Labor Code, such as DO No.
40-F-03 Series of 2008, which was issued to implement the amendments introduced by RA
9481, there was no mention of a “___________” as being among the labor organizations allowed
to charter a local chapter or chartered local because the pertinent statutes and applicable
implementing rules do not grant such authority thereto. The power granted to labor
organizations to directly create a local chapter or chartered local through chartering is given
only to a ________________.

a. federation union; trade union center

b. national union; trade union center
c. trade union center; federation union
d. federation union; national union

RATIONALE: Under the Rules to Implement the Labor Code, such as DO No. 40-F-03 Series
of 2008, there was no mention of a “trade union center” as being among the labor
organisations allowed to charter a local chapter/chartered loca. As was held in San Miguel
Corp (GR No. 171153), trade union centers are not allowed to charter directly a local
chapter/chartered local because the pertinent statutes and applicable implementing rules do
not grant such authority thereto. The power granted to labor organisations to directly create
a local chapter through chartering is given only to a federation or national union. (Page 537)

19. The following registration requirements are similar for independent unions and local
chapters/chartered locals, except for:

a. Registration fee
b. Submission of 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
c. If the applicant union has been in existence for one or more years, copies of its annual
financial reports
d. Submission of 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 meeting.

RATIONALE: Under Art. 241 [234-A], chartering of a local chapter/chartered local is made
by the simple expedience of issuing in its favor a charter certificate by the federation or
national union. Hence, a local charter/chartered local is created under more lenient
requirements for chartering. The intent of the law in imposing less requirements in cases of
local chapters/chartered locals of a registered federation or national union is to encourage
the affiliation of a local union with a federation or national union in order to increase the local
union’s bargaining powers respecting terms and conditions of labor. (Page 538)

20. The additional supporting documents required for the registration of a local
chapter/chartered local should be certified under oath by?

a. By the secretary and the treasurer of the local chapter and attested by its president.
b. By the secretary of the local chapter and attested by its president.
c. By the secretary or treasurer of the local chapter and attested by its president.
d. By the treasurer of the local chapter and attested by its president.

RATIONALE: Under Sec 2 of RA 9481, these additional supporting documentary

requirements should be certified under oath by the secretary or treasurer and attested to by
its president. (Page 539)
21. Which of the following statements concerning the acquisition of legal personality is not
correct?

a. The acquisition of legal personality by a national union is reckoned from the issuance to it
of a Certificate of Registration by the BLR.
b. A federation is deemed to have acquired a legal personality upon the issuance to it of a
Certificate of Registration by the BLR.
c. A chartered local/local chapter needs to be independently registered to acquire legal
personality.
d. The acquisition of legitimacy by an independent union is reckoned from the issuance to it
of a Certificate of Registration by the BLR.

RATIONALE: No independent registration is required for local chapter/chartered local to

acquire legal personality, (Laguna Autoparts Corporation vs. Office of the Secretary, DOLE,
G.R. No. 157146, April 29, 2005). Unlike the acquisition of legal personality and legitimacy
by a federation, national union or independent union which, per Article 240 [234], as
amended by R.A. No. 9481, is reckoned from the issuance to it of a Certificate of registration
by the BLR, a local chapter/chartered local acquires legal personality upon submission to
the DOLE of its charter certificate issued by the federation or national union and other
documents mentioned in Article 241 [234-A]. (Page 540)

22. At what particular point does a labor organization acquire a legal personality?

a. On the date the agreement to organize the union is signed by the majority of all its
members
b. On the date the application for registration is duly filed with the Department of Labor
c. On the date appearing on the Certificate of Registration
d. On the date the Certificate of Registration is actually issued.

RATIONALE: 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. (Page 541)

23. The case of San Miguel Corp. Employees Union-PTGWO v. San Miguel Packaging Products
Employees Union agrees with what Article 241 [234-A] and its current implementing rule
states – that acquisition of legal personality of a local chapter/chartered local takes effect
from ___________________________ and not from ________________________________.

a. the issuance of the Certificate of Creation of a Chartered Local; the date of filing of
complete documents with the BLR
b. the date of filing of complete documents with the BLR; the issuance of the
Certificate of Creation of a Chartered Local
c. the date of filing of the Certificate of Creation of a Chartered Local; the issuance of the
Certificate of Creation of a Chartered Local
d. submission of the Certificate of Creation of a Chartered Local; the date of filing of the
Certificate of Creation of a Chartered Local

RATIONALE: “A duly constituted local or chapter created in accordance with the foregoing
shall acquire legal personality from the date of filing of the complete documents with the BLR.
The issuance of the certificate of registration by the BLR or the DOLE Regional Office is not
the operative act that vests legal personality upon a local or a chapter under Department
Order No. 9. Such legal personality is acquired from the filing of the complete documentary
requirements enumerated in Section 1, Rule VI.” (Page 542)

24. The following statements are true regarding the application for registration and notices
contemplated under Article 242 [235], EXCEPT ONE.

a. The notices contemplated include merger, consolidation, change of name and affiliation
b. All requisite documents and papers shall be certified under oath by the secretary or
treasurer of the organization, as the case may be, and attested by the DOLE Regional
Officer.
c. The DOLE Regional officer shall act on all applications for registration within 30 days
from filing.
d. The registration application under Article 242 [235] includes unions such as Independent
labor organizations, local/ chartered chapter and workers’ association.
RATIONALE: All requisite documents and papers shall be certified under oath by the
secretary or treasurer of the organization, as the case may be, and attested to by the
organization’s president. The requirement of certification and attestation insures that the
documents are authentic and genuine and not the product of misrepresentation, false
statement or fraud that would justify the cancellation of the registration of the union. (Page
543)

25. What does the certification and attestation requirement insures?

a. Documents are authentic and genuine

b. Proof of the existence of a labor union
c. Fly-by-night unions existence
d. All of the above

RATIONALE: The requirement of certification and attestation insures that the documents are
authentic and genuine and not the product of misrepresentation, false statement or fraud
that would justify the cancellation of the registration of the union. (Page 544)

For page 545 (Prepared by: Abella, Judy Ann)

Question:

What is the proper remedy to compel approval of union registration application or in a case of
refusal to register a union?

a. Quo Warranto
b. Motion for Reconsideration
c. Writ of Mandamus
d. Preliminary Injunction

RATIONALE: Section 3 of the Commonwealth Act No. 213 states that “An application to
register and operate a legitimate labor organization, accompanied by a copy of the constitution
and by-laws thereof, shall be filed with the Secretary of Labor, who shall conduct an
investigation of the activities of the applying labor organization and if, on such investigation, it
shall appear that the applicant is entitled to registration, he shall issue a permit therefor upon
payment of the registration fee of five pesos: Provided, however, That any permit issued by
the Secretary of Labor to any legitimate labor organization shall last for a period of two years
only from the date of issue, but it may be renewed for like periods upon payment of a renewal
fee of three pesos for each renewal permit.” Writ of Mandamus is the proper remedy to
compel approval of a union registration application or in case of refusal to register a union,
because there is no other plain, speedy, and adequate remedy in the ordinary course of law.

For page 546 (Prepared by: Andres, Lordeliza)

Question:
Which of the following is not correct in case of union registration?

a. An action for mandamus is an effective remedy to compel approval of union registration

application.
b. One remedy available to compel registration of a union is writ of certiorari.
c. Writ of Amparo is the best remedy to compel approval of union registration
application.
d. Writ of certiorari cannot be issued to prevent union registration.
RATIONALE: The proper remedy in case of refusal to register a union is either a Writ of
Mandamus or Writ of Certiorari. However, writ of certiorari cannot be issued to prevent union
registration (Brillo vs. Buklatan).

Page 547 (Prepared by: Banggiacan, Rod)

Question :

What happens when the applicant labor organization concerned fails to complete the
requirements for the application for registration within the time prescribed?

a. The applicant shall be given an extension of 10 days

b. The application for registration shall be denied and the applicant and is barred to apply for
the next 30 days
c. The application for registration shall be denied, or the noticed returned without
prejudice to the filing of a new application or notice
d. None of the above

RATIONALE: Section 5. Denial of Application/Return of Notice under DEPARTMENT

ORDER NO. 40-D-05 Series of 2005, procedure on the denial of the application for
registration on grounds of non-compliance with the requirements for application of registration

Page 548 (Prepared by: Banggolay, Brent)

Question:

Within what period should the BLR or the Office of the DOLE Secretary, as the case may be,
decide an appeal?

a. Within five (5) days from receipt of the records of the case.
b. Within ten (10) days from receipt of the records of the case.
c. Within fifteen (15) days from receipt of the records of the case.
d. Within twenty (20) days from receipt of the records of the case.

RATIONALE: Rule IV, Sec. 7 of the Department Order No. 40-03 states that " Section 7.
Procedure on Appeal- The memorandum of appeal shall be filed with 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 of 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".

Page 549 (Prepared by: Bengwasan-Joaquin, Jelynne)

Question:

All statements are true about an Industry Union, except:

a. It is a labor union to which all the workers of a particular industry can belong regardless of
their occupation or trade.
b. An industry union may become a federation or a national union by applying for registration
as such within the specified industry by submitting to the BLR the same set of documents
required for registration of federations and national unions.
c. As a result of the abandonment of the "one union, one industry" policy, all existing
federations were allowed to continue to maintain their existing affiliates regardless of the
nature of the industry and the location of the affiliates, provided they meet the qualifications
of a legitimate labor organization and none of the grounds for cancellation.
d. It is a labor union to which only a specific or selected group of workers of a
particular industry can belong.

RATIONALE: The correct statement is “It is a labor union to which all the workers of a
particular industry can belong regardless of their occupation or trade.”

Page 550 Prepared by: Biado, Jefferson)

Question:

The following are the requirements for application for registration of federation and national
union, except?

a. Fifty pesos registration fee.

b. The names and addresses of the companies where the affiliates operate and the list of all
the members in each company involved.
c. Charter Certificate
d. A statement indicating the name of the applicant labor union, its principal address, the
name of its officers and their respective addresses.

RATIONALE: Although not expressly mentioned in Article 240 [234], it is required under the
2nd paragraph of Article 242 [235]3 and the Implementing Rules that the application for
registration of a federation, national union or industry union, including all the accompanying
documents and papers mentioned thereunder to be submitted for purposes of registration,
should be certified under oath by its secretary or treasurer, as the case may be, and attested
to by its President.

For page 551 (Prepared by: Borja, Jon Cris)

Question:

This term is not commonly found in the law but used by the Supreme Court to describe a
federation or a national union:
a. National Chapter
b. Affiliate Union
c. Mother Union
d. Chartered Union
RATIONALE: In relation to an affiliate union, the federation or national union is commonly
known as “Mother Union”. This term is not found in law oftentimes, the Supreme Court uses
this term to describe a federation or a national union.
For Page 552 (Prepared by: Castañeda, Cecille)
Question:

Where to file the notice or report of affiliation of an independently-registered labor union with
a federation or a national union?

a. DFA Regional Office

b. DTI Regional Office
c. DOLE Regional Office
d. DILG Regional Office

RATIONALE: The notice or report of affiliation of an independently-registered labor union with

a federation or a national union should be filed with the DOLE Regional Office that issued its
Certificate of Registration.

For Page 553 (Prepared by: Cuyahon, Reina Almira)

Question:

Which of the following is true regarding the nature and extent of relationship between the
mother union and affiliate union?

a. An affiliate union owes its creation and continued existence to the will of federation or
national union to which it is affiliated.
b. Once affiliation is validly effected, the affiliate union becomes subject to the rules
and regulations of the parent organization or mother union under whose charter or
authority, the affiliate union exists and functions.
c. The fact that the local chapter is not a legitimate labor organization affects the principal-
agent relationship.
d. There can be a reversal of the principal-agent relationship if the CBA was negotiated and
concluded by the federation.

RATIONALE: Choice a is False because an affiliate union owes its creation and continued
existence to the will of its members and not to the federation or national union to which it is
affiliated. (Tropical Hut Food Employees Union-CGW v. Tropical Hut Food Market) Choice c
is False because the fact that the local chapter is not a legitimate labor organization does not
affect the principal-agent relationship. Such compliance with procedural requirements that
would make it as such is immaterial. (Filipino Pipe and Foundry Corporation v. NLRC) Choice
d is also False because the fact that it was the federation which negotiated the CBA does not
make the federation the principal and the affiliate union or chartered local merely the agent.
(Insular Hotel Employees Union-NFL v. Waterfront Insular Hotel Davao)

For page 554 (Prepared by: Digman, Edgar)

Question:

Can the local chapter/ chartered local labor union negotiate the renewal of the CBA without
the consent and participation of the federation or mother union?

a. No, if it was the federation which negotiated all the CBAs in the establishment.
b. Yes, if it was the federation which negotiated all the CBAs in the establishment.
c. Local chapter labor union can just negotiate the renewal of the CBA anytime even without
the consent and participation of the federation even if it was the federation which
negotiated all the CBAs in the establishment.
d. none of the above.

RATIONALE: If it was the federation which negotiated all the CBAs in the establishment, the
local chapter/chartered local cannot negotiate the renewal of the CBA without the consent and
participation of the federation.

For Page 555 (Prepared by: Fianza, Demi)

Question:

What is the effect if it is the name of the federation that is mentioned as the bargaining party
in the CBA without any specific mention of its local union?

a. The CBA is void for being contrary to rules and regulations prescribed by the Department
of Labor and Employment.
b. The CBA has no binding force since the federation only serves as a mere agent of the
local union; hence, without any legal personality to sign in behalf of the latter.
c. The CBA is valid. The fact that it was the name of the federation that was particularly
mentioned does not have any effect on the right of the federation to participate in
the bargaining process.
d. The CBA is valid and existing because only a federation can be named as a bargaining
party in the CBA. As a result, a “contract bar rule” shall apply.

RATIONALE: In the case of Kalipunan ng Manggagawang Pilipino (KAMAPI) v. Laguesma,

the Supreme Court held that the fact that KAMAPI was particularly mentioned as the
bargaining party without specifying the local union cannot strip it of its authority to participate
in the bargaining process. The local union maintains its separate personality despite affiliation
with a larger national federation.

For Page 556 (Prepared by: Garcia, Denise Paola)

Question:

In case of an illegal strike, the local union, not the mother union, is liable for the damages.

a. Yes, the direct and primary responsibility for damages caused by an illegal strike
falls on the local union, being the principal.
b. Yes, the mother union and local union are jointly liable for damages.
c. Both a and b are correct
d. Neither a nor b is correct

RATIONALE: In the case of Filipino Pipe and Foundry Corporation v. NLRC, it was declared
that "evidently, direct and primary responsibility for the damages allegedly caused by the illegal
strike sued upon shall fall upon the local union FPWU-NLU, being the principal and not on
respondent NLU-TUCP, a mere agent of FPWU-NLU which assisted the latter in filing the
notice of strike.
For Page 557 (Prepared by: Jimenez, Pacholo)
Question:

Which of the following statements is not correct?

a. the right of the local members to withdraw from the federation and to form a new local
union depends upon the provisions of its constitution, by-laws and charter.
b. the federation and unions are two different entities.
c. self-organization is for the workers to form a group for the effective enhancement and
protection of their common interest.
d. disaffiliation is an act of disloyalty that warrants expulsion from the union.

RATIONALE: The disaffiliation from the federation of an affiliate union is not an act of
disloyalty which may result in the dismissal of the employees who approved of the disaffiliation
on the ground of violation of the union security clause in the CBA. In People’s Industrial, it was
held that petitioners themselves from the mother federation does not constitute an act of
disloyalty to the union which would warrant their expulsion and consequently their dismissal
from the company in pursuance to the union security clause embodied in the CBA. The
federation and the union are two different entities. A local union does not owe existence to the
federation to which it is affiliated. It is a separate and distinct voluntary association owing its
creation and continued existence to the will of its members. The very essence of self-
organization is for the workers to form a group for the effective enhancement and protection
of their common interest. More so in this case when 51 out of 60 employees which is equivalent
to 85% of the total working force have disaffiliated from the federation. This is not a case where
one or two members of the old union decided to organize the union in order to topple down
the former, but it is a case where the majority of the union members decided to reorganize the
union and to disaffiliate from the mother federation.

For page 558 (Prepared by: Lapira, Ariel)

Question:

Which statement is false?

i. Disaffiliation is valid even if there has been a failure to observe certain procedural
requirements for a valid disaffiliation.
ii. The disaffiliation of an affiliate (independently-registered) union does not affect its legitimate
status as a labor organization.
iii. Disaffiliation before the 60-day freedom period is valid if supported by majority of the union
membership.

a. i is false
b. ii is false
c. iii is false
d. All are false
e. All statements are true

RATIONALE:
1. The disaffiliation of an affiliate (independently-registered) union does not affect its
legitimate status as a labor organization. However, the same thing may not be said of a local
chapter/chartered local which has no independent registration since its creation was effected
pursuant to the charter certificate issued to it by the federation or national union. Once a local
chapter/chartered local dissociates or "disaffiliates" from the federation or national union which
created it, it ceases to be entitled to the rights and privileges granted to a legitimate labor
organization. Hence, it cannot, by itself: file a petition for certification election. This distinction,
however, does not hold true if in the meantime, the local chapter/chartered local has secured
independent registration prior to disaffiliation, in which case, the disaffiliation will not affect its
legal status as a legitimate union.
2. Disaffiliation is valid even if there has been a failure to observe certain procedural
requirements for a valid disaffiliation. Non-compliance with the procedure on disaffiliation,
being premised on purely technical grounds, cannot rise above the fundamental right of self-
organization and to form and join labor organizations of their own choosing for the purpose of
collective bargaining.
3. Disaffiliation before the 60-day freedom period is valid if supported by majority of the
union membership. Thus, in Alliance of Nationalist, respondent SAMANA BAY decided to
disaffiliate from petitioner ANGLO in view of the latter's dereliction of its duty to promote and
advance the welfare of SAMANA BAY and the alleged cases of corruption involving the
federation officers. Said disaffiliation was unanimously confined by the members. of SAMANA
BAY. Petitioner contended that the disaffiliation of respondent union was void considering that
a CBA was still existing and the freedom period has not yet set in. The Supreme Court,
however, asserted the well-settled rule that a local union has the right to disaffiliate from its
mother union when circumstances warrant While generally, a labor union may disaffiliate from
the mother union to for 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. And this can be done despite the closed-shop
provision in the CBA between the mother union and management provided it is effected by a
majority of the members of the local union. Therefore, if there is no showing that the majority
of the union has approved the disaffiliation, it is not valid and binding. While it is true that a
local union, being an entity separate and distinct from the federation, is free to serve the
interest of alI its members and enjoys the freedom to disaffiliate, such right to disaffiliate may
be exercised, and is thus considered a protected labor activity, only when warranted by
circumstances and approved by the majority.

For page 559 (Prepared by: Limpin, Avelyne Marie Milagros)

Question:
What is the effect on disaffiliation of a pending settlement of certification election protest
against the mother federation's status as the sole bargaining agent of rank-and-file
employees?
a. An independent local union cannot validly disaffiliate from the mother federation
b. An independent local union can validly disaffiliate from the mother federation
c. The pendency does not constitute a bar to a valid disaffiliation
d. Both B and C are true
e. All are true
RATIONALE: In the landmark case of Liberty Cotton Mills Workers Union vs. Liberty Cotton
Mills, Inc. The courts upheld the right of local unions to separate from their mother federation
on the ground that as separate and voluntary associations, local unions do not owe their
creation and existence to the national federation to which they are affiliated but, instead, to
the will of their members.
Yet the 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.
In the case of Philippine Skylanders Inc. vs NLRC, (GR. Nos. 127374 and 12743)
the courts held that an independent local union can validly disaffiliate from the mother
federation pending the settlement of a certification election protest questioning its status as
the sole and exclusive bargaining agent of the company's rank-and-file employees. More so
when there is nothing shown in the records nor is it claimed by the federation that the
local union was expressly forbidden to disaffiliate from the federation nor were there
any conditions imposed for a valid breakaway.
Further, policy considerations dictate that in weighing the claims of a local union as
against those of a national federation, those of the former must be preferred.

For Page 560 (Prepared by: Manuel, Charmaine Kay)

Question:

The CBA continues to bind the members of the new or disaffiliated and independent union up
to the CBA's expiration date. This refer to the Effects of Disaffiliation on CBA wherein
disaffiliation does not disturb the enforceability and administration of an existing CBA.

a. Employment Status of Affiliate Union's Members

b. CBA's Administration and Binding Effect
c. c). Need for Approval of Majority of Union Members
d. d). CBA's Enforceability and Binding Effect

For Page 561(Prepared by: by Matib, Arianne)

Question:

Which of the following statement is not correct?

a. The employees’ check-off authorization, even if declared irrevocable, is good only as long
as they remain members of the union concerned.
b. A contract between an employer and the parent organization as bargaining agent for the
employees is terminated by the disaffiliation of the local of which the employees are
members.
c. The obligation to check-off federation dues is terminated with the valid disaffiliation
of the local union from the federation with which it was subsequently affiliated.
d. The federation is entitled to receive the dues from the employer as long as the local union
is affiliated with it and the employer is authorized by its employees to deduct union dues.

RATIONALE: The word “subsequently” made the statement wrong, it should be “previously.
In the case of Volkschel Labor Union vs Bureau of Labor Relations (GR No. L-45824, January
19, 1985), a local union, being a separate and voluntary association, is free to serve the
interest of all its members including the freedom to disaffiliate when circumstances warrant.

For Page 562 (Prepared by: Mendoza, Joyce Allysa Q.)

Question:

Based on the Rules to Implement the Labor Code, this refers to "any conflict between and
among union members xxx including cases arising from chartering or affiliation of labor
organization"

a. Intra-union Dispute
b. Inter-union Dispute
c. Intrel-union Dispute
d. Extra-judicial Dispute

RATIONALE: In the case of Philippine Skylanders, Inc. vs. NLRC, it was held that the issue
of disaffiliation is an inter-union conflict based on the Rules to Implement the Labor Code
which defined inter-union dispute as any conflict between and among union members xxx
including cases arising from chartering or affiliation of labor organization.
An inter-union dispute is one out of the two nature of disaffiliation the other nature is
called the intra-union. An intra-union dispute is defined in the case of Cirtek Employees Labor
Union-Federation of Free Workers vs. Cirtek Electronics, Inc. as any conflict between and
among union members, including grievances arising from any violation of the rights and
conditions of membership, violation of or disagreement over any provision of the union’s
constitution and by-laws, or dispute arising from chartering or disaffiliation of the union.

Page 563 (Prepared by: Pascua, Cherry Ross)

Question:

Who acquires jurisdiction over disaffiliation issues in labor organizations?

a. The Labor Arbiter because of the existence of a principal-agent relationship between a

local union and a mother federation.
b. The Labor Arbiter because it exercises exclusive and original jurisdiction to hear and
decide upon the cases of all workers, whether agricultural or non - agricultural.
c. The Med-Arbiter of the Bureau of Labor Relations by express provision of Article
232[226] of the Labor Code.
d. Since a disaffiliation issue is considered as an inter-union dispute, the Med-Arbiter of the
Bureau of Labor Relations shall acquire jurisdiction.

RATIONALE: Jurisdiction over an issue regarding disaffiliation belongs to the Med-Arbiter of

the Bureau of Labor Relations whether such disaffiliation be treated as intra or inter-union
dispute. Pursuant to Article 232 of the Labor Code, as amended, 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.
For Page 564 (Prepared by: Pederiche, Ruvee-Jana)
Question:

What is the significance or importance of the amendment or Article 245 (238) by RA 9481 on
the cancellation of union registration?

a. The amendment seeks to strengthen the worker's right to self-organization

b. The amendment enhance the Philippine's compliance with its international obligations as
embodied in the International Labor Organization (ILO) Convention No.87
c. Both A and B
d. Neither A nor B

RATIONALE:
Article 245 (238), prior to its amendment by R.A. No. 9481, states:
“Article 245 (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.”
This article, as amended by R.A. no. 9481, deleted the phrase “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.”
The said amendment on the cancellation of union registration seeks to strengthen the
worker's right to self-organization and enhance the Philippine's compliance with its
international obligations as embodied in the International Labor Organization (ILO) Convention
No.87.

Page 565 (Prepared by: Sacliwan, Jirah Lou-Anne)

Question:

Which of the following statement is true?

I. Cancellation proceedings is the legal process leading to the revocation of the legitimate
status of a union or a worker's association.
II. In the case of federation, national union or industry union and trade union center, the
Regional Director may cancel its registration upon the filing thereof with the DOLE Regional
Office.
III. Only legitimate labor organizations are subject to the cancellation rules in the Labor Code.

a. I only
b. I and II
c. I and III
d. II and III

RATIONALE: The venue of filing the petition for cancellation and application for voluntary
dissolution depends on the kind of union whose registration is sought to be cancelled. Subject
to the requirements of notice and due process, the following rules should be observed
regarding the venue:
 In the case of legitimate independent labor union, local chapter/chartered local and
workers’ association, the Regional Director may cancel its registration upon filing thereof with
the DOLE Regional Office which issued its certificate of registration or certificate of creation
of local chapter/chartered local.
In the case of federation, national union or industry union and trade union center, the
BLR Director may cancel its registration upon the filing thereof in the BLR.

For Page 566 (Prepared by: Taag, Cristine Anne)

Question:

By the new provision inserted into the Labor Code by R.A. No. 9481, i.e. Article 252 [242-A],
what is the effect if the legitimate labor organization fails to comply with the reportorial
requirements?

a. The registration of the labor organization will be canceled.

b. The erring officers or members are subject to suspension, expulsion from
membership or any appropriate penalty.
c. Either A or B, by discretion of the Dole Regional Director.
d. Both A and B.

RATIONALE: Upon the insertion of a new provision, that is Article 252 [242-A], into the Labor
Code by Section 7 of R.A. No. 9481, the non-compliance of reportorial requirement provided
under the same Article is now considered not a ground for cancellation of the union
registration. The last paragraph of Article 252 [242-A] of Labor Code states that “failure to
comply with the 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.”

For page 567 (Prepared by: Tolledo, Ronald)

Question:

Suppose a petition for cancellation of registration against a labor organization has been filed
and presently pending, what will be its effect?

a. It will prevent the filing of a petition for certification election.

b. It will suspend the proceedings for certification election.
c. It will cancel the proceedings for certification election.
d. It will not bar the conduct of a certification election.

RATIONALE: The filing or initiation of a cancellation petition against a labor organization does
not have the effect of depriving it of the rights accorded to a legitimate labor organization under
the Labor Code. For as long as there is no final order of cancellation, the labor organization
whose registration is sought to be cancelled shall continue to enjoy said rights. The pendency
alone of cancellation proceedings does not affect the rights of a labor organization.

Page 568 (Prepared by: Chiweran, Alpine Sunshine)

Question:
Consider the following statements regarding cancellation of union registration:

I. The filing of a petition for cancellation of union registration precludes the SEBA from
engaging in collective bargaining with the employer.
II. In case of cancellation of registration with finality the union can no longer seek other
remedies in the appropriate courts.
III. The cancellation of the union's certificate of registration is not retroactive to date of
issuance.

a. Statement I is correct
b. Statements II and III are correct
c. Statements I and II are incorrect
d. Statement III is incorrect

Rationale: Statement number 1 is incorrect because pendency of petition is not a bar to set
in motion the mechanics of collective bargaining.
Statement number 2 is also incorrect because of the principle of hierarchy of courts, the
decisions of the Supreme Court shall have the final say of any issues addressed to it.
Statement number 3 is correct because, as a principle, the Constitution imposes some limited
constraints to such effect. Those already decided by the union was already acknowledge by
its members. Applying retroactive effect to the time of its issuance would ignore all of the
efforts and the rights of the union legally acknowledge by the DOLE during that time.

For page 569 (Prepared by: Tantao, Amera)

Question:

Under Article 247 [239] of the Labor Code, the following are the grounds for the cancellation
of Union registration, which is not:

a. Misrepresentation, false statement or fraud in connection with the election of officers,

minutes of the election of officers, and the list of voters.
b. Failure to submit the annual financial report to the BLR within 30 days after the
closing of every fiscal year and misrepresentation, false entries or fraud in the
preparation of the financial report itself.
c. Voluntary dissolution by the members.
d. 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.

RATIONALE: Prior to the amendment of R.A No. 9481, letter [b] is one of the grounds for the
cancellation of union registration. Now, Article 247 [239] of the Labor Code as amended, 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 statement or fraud in connection with the election of officers,
minutes of the election of officers, and list of voters;
c. Voluntary dissolution by the members.

1. S1: Jurisprudence dictates that after a certificate of registration is issued to a union,

its legal personality cannot be subject to a collateral attack in another proceeding but
may be questioned only in an independent petition for cancellation in accordance with
the Rules to Implement the Labor Code.
S2: The employer cannot make collateral attack in a certification election case.

a. S1 is True, S2 is False
b. S1 is False, S2 is True
c. Both statements are True
d. Both statements are False

RATIONALE: S1 correctly references the jurisprudential basis that a collateral attack

in a petition for certification election (PCE) is not allowed except that given in
accordance with Section 5 of Rule V, Book IV of the "Rules to Implement the Labor
Code".
S2 is also true because the employer is a mere bystander to any PCE; such proceeding
is non-adversarial and merely investigative, for its purpose is to determine which
organization will represent the employees in their collective bargaining with the
employer.

2. What court has the jurisdiction over cases where no employer- employee relationship
exists between the parties and no issue is involved which may be resolved by reference
to the Labor Code?

a. Court of Appeals
b. Regional Trial Courts
c. Municipal Trial Courts
d. B and C

RATIONALE: The Service contract between the principal and the contractor, being civil
in nature and not one involving labor law, any dispute arising therefrom, including
adjustments of wage rates occasioned by law and wage orders should be litigated
before the regular courts and not before labor tribunals.

3. Republic Act No. 9481 provided only three grounds for the cancellation of union
registration. This is an additional ground for the cancellation of union registration.

a. Failure to submit the documents on the adoption or ratification of the

constitution and by-laws of the union, or amendments thereto, under Article
252[242-A].
b. Violation of rights and conditions of membership in a labor organization
under Article 250[241] of the Labor Code.
c. When the union staged an illegal strike.
d. The inclusion as union members of employees who are outside the bargaining
unit.

RATIONALE: Article 250 [241] of the Labor Code provides that any violation of the
rights and conditions of membership enumerated and specified thereunder shall be a
ground for cancellation of union registration or expulsion of officers from office,
whichever is appropriate. This ground has not been expressly repealed by virtue of the
amendments introduced by R.A. No. 9481. Hence, it may be validly invoked in a petition
to cancel union registration.
4. S1: A labor organization, once becoming legitimate and, therefore, a juridical person,
has vastly different rights from those granted a legitimate corporation as they are
completely different entities.
S2: The legal effects and consequences of the cancellation of registration or voluntary
dissolution of a union are similar to those in a corporate dissolution. It follows the
same process as corporate liquidation.

a. S1 is true, S2 is false.
b. S1 is false, S2 is true.
c. Both statements are true.
d. Both statements are false.

RATIONALE: A labor organization has similar rights to those granted to a legitimate

corporation and since the law does not provide for the legal effects and consequences
of the cancellation of registration or voluntary dissolution of a union, it will follow the
same process as corporate liquidation.

5. After a union's dissolution is ordered, the issues as to how its funds and assets should
be liquidated and how its liabilities should be paid can only be resolve through:

a. A set of amendatory rules to the Constitution

b. A set of amendatory rules to the current Implementing Rules of Labor
Code
c. A petition to liquidate filed before the DOLE Regional Director
d. A set of amendatory rules to the current Implementing Rules of Corporation
Code

RATIONALE: There have been no rules promulgated by DOLE on how the liquidation
process be made after a union's dissolution is order. Such varied issues as to how its
fund and assets should be liquidated, how its liabilities should be paid, how its residual
funds and assets should be distributed and, most significantly, at what point after the
liquidation is done should the union's juridical existence be declared as finally over, can
only be resolve through a set of amendatory rules to the current Implementing Rules
of Labor Code.

6. The following statements are true, EXCEPT:

a. When the principal has already fully complied with its obligations for wages
and other benefits under the terms and conditions of the Service Contract, the
contractor cannot ask for reimbursement from the principal for whatever the
former has paid to its own employees.
b. The right of the contractor (as principal debtor) to recover from the principal
(as solidary co-debtor) arises only if he has paid the amounts for which both
of them are jointly and severally liable with his principal or client.
c. The increases in wages are intended for the benefit of the laborers and that
the contractor may not assert a claim against the principal for salary wage
adjustments that it has not actually paid. Otherwise, the contractor would be
unduly enriching itself by recovering wage increases for its own benefit.
d. When the principal or client fails to pay the prescribed wage rates, only
the construction/service contractor will be liable for the non-payment of
the principal or client.

RATIONALE: As far as wage increases mandated under wage orders issued by the
Regional Tripartite Wages and Productivity Boards (RTWPBs) are concerned, the rule
on reimbursement is quite explicit. In the case of contracts for construction projects and
for security, janitorial and similar services, the prescribed increases in the wage rates
of the workers shall be borne by the principals or clients of the construction/ service
contractors and the contract shall be deemed amended accordingly. In the event,
however, that the principal or client fails to pay the prescribed wage rates, the
construction/ service contractor shall be jointly and severally liable with his principal or
 client. (Eagle Security Agency, Inc. v. NLRC, G.R. Nos. 81314 & 81447, May 18,
1989, 173 SCRA 479)
It is only when the contractor pays the increases mandated that it can claim an
adjustment from the principal to cover the increases payable to the security guards.

7. Any action involving the funds of the of the labor organization shall prescribe

a. After four (4) years from the date of submission of the yearly financial report
to the DOLE.
b. After one (1) year from the date the annual financial report should have been
submitted as required by law.
c. After three (3) years from the date of submission of the annual financial
report to the DOLE or from the date the same should have been submitted
as required by law, whichever comes earlier.
d. After three (3) years from the date of submission of the annual financial report
to the DOLE or from the date the same should have been submitted as required
by law, whichever occurs later.

RATIONALE: Under Article 250 [241] paragraph j of the Labor Code which provides
the Rights and Conditions of Membership in a Labor 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 bas 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 Jaw 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.

8. In the absence of any agreement among the members or any provision in the
Constitution or By-Laws of a labor union or workers association, the President of the
Labor Organization shall constitute a committee on election to be composed of of at
least ____ members who shall not be running for any position in the election

a. 5
b. 3
c. 6
d. 7

RATIONALE: Under Section 1 of Rule XII (Department Order No. 40-3) the committee
on election shall be composed of at least 3 members who are not running for any
position in the election. The concurrence of at least three Commissioners of a division
shall be necessary for the pronouncement of judgment or resolution and to be able to
ensure the participation of workers in decision and policy-making processes affecting
their rights, duties and welfare. However, if there are identifiable parties within the labor
organization, each party shall have equal representation in the committee.

9. When may an employee become eligible to vote in election of union officers?

a. When may an employee become eligible to vote in election of union officers?
b. a. After one year of continuous service to the company
c. b. After one year of service, whether such service is continuous or broken
d. c. Beginning on his first day of service, wherein he shall be considered as
an employee for purposes of membership in any labor union
e. d. Upon payment of membership dues

RATIONALE: Article 292(c) of the Labor Code provides that 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.
 Contrary to the previous rule, as enunciated in Tamante v. Noriel (GR No. L-49272,
Sept. 15, 1980, 100 SCRA 93), there is no longer need for the definite-period
employees to render "at least one year of service, whether continuous or broken"
before they can be eligible to become members of a union and consequently, to vote
for its officers. They need not also be considered as "regular" employees in order to be
eligible for union membership.

10. All are distinctions between union election and certificate election, except:

a. The purpose in union election is to elect the officers of the union; while the
certification election is to elect the union which shall be bestowed the authority
and right to be the sole and exclusive bargaining agent of all the members of
the bargaining unit where it seeks to operate.
b. A union election is held pursuant to the union's Constitution and By-Laws;
while a certification election is held pursuant to the pertinent provisions of the
Labor Code.
c. A union election is conducted only upon the order of the Med-Arbiter of
the Bureau of Labor Relations; while a certification election does not
need the intervention of the Department of Labor and Employment
(DOLE).
d. In union election, the right to vote in it is enjoyed only by union members;
while in a certification election, all employees belonging to the appropriate
bargaining unit can vote.

RATIONALE: A union election does not need the intervention of the Department of
Labor and Employment (DOLE); while a certification election is conducted only upon
the order of the Med-Arbiter of the Bureau of Labor Relations (BLR).

11. S1- In cases of filing of petition to compel the conduct of election, such petition shall
be filed with the Regional Office that issued its certificate of registration or with which
the registration documents were submitted.
S2- In the case of federations, national or industry unions and trade union centers,
the petition should be filed with the BLR or the Regional Office but it shall be heard
and resolved by the DOLE.

a. S1 is TRUE, S2 is FALSE
b. S1 is FALSE, S2 is TRUE
c. Both statements are TRUE
d. Both statements are FALSE

RATIONALE: The labor code provides remedies in case of non-holding of election by

filing a petition to compel the conduct of election. Such petition shall be filed with the
Regional Office that issued its certificate of registration or with which the registration
documents were submitted. In the case of federations, national or industry unions and
trade union centers, the petition should be filed with the BLR or the Regional Office but
it shall be heard and resolved by the Bureau of Labor Relations (BLR).

12. The following are not true except:

a. Creditors such as the contractor's employees may only collect from the
principal.
b. The joint and several liability of the contractor and the principal is
mandated to assure compliance of the provisions of the Labor Code
including the statutory minimum wage.
c. To hold the principal liable, solvency or unwillingness to pay on the part of the
job contractor must be proven.
d. As far as the contractor's employees are concerned, the actual source of the
payment of their wage differentials and premium for holiday and rest day
matters even if they are paid.
 RATIONALE:
a. Since the obligation being joint and solidary in nature, the contractor's employees
may collect from either the principal or legitimate job contractor.
b. This was held in In the case of Eparwa Security and Janitorial Services, Inc. vs Liceo
de Cagayan University. (GR No. 150402, Nov. 28, 2006)
c. In the case of DBP vs NLRC GR NO 100376, the term fails in Article 106 of the Labor
Code does not mean that it should be proven first that the contractor is insolvent or is
unwilling to pay. There is nothing in said provision which justifies this argument.
d. In the case of Eparwa Security and Janitorial Services, Inc. vs Liceo de Cagayan
University, the court held that as far as the contractor's employees are concerned, the
actual source of the payment of their wage differentials and premium for holiday and
rest day work does not matter as long as they are paid. This is the import of the
principal's and contractor's solidary liability.

13. The right to information, among others, is one of the rights guaranteed for union
members under Article 250 of the Labor Code. This right includes one of the following:

a. Right to seek investigation of any irregularity

b. Right against arbitrary, oppressive or excessive fees, fines and forfeitures
c. Right to vote and be voted upon as an officer of the union
d. Right to vote by secret ballot on any question of major policy affecting the
entire membership of the organization

RATIONALE: As expressly provided under the above provision of the Labor Code,
among the choices, only choice A is included as part of right to information of a union
member. Choice B is a fiscal right, choice C is a political right and choice D is a right
to participate in decision-making.
It must be noted that under Article 119 of the same Code, it shall be unlawful for any
person to make any statement, report or record filed or kept pursuant to the provisions
of this Code knowing such statement, report or record to be false in any material
respect.

14. The following are TRUE about relationship of the union and its members EXCEPT:

a. The relationship between the union and its members is fiduciary in character.
b. The union is but an agent of its members for the purpose of securing for them
fair and just wages and proper, good working conditions.
c. The relationship includes the obligation to give its members as its principals,
all information relevant to the union and labor matters entrusted to it.
d. Where the union leadership is recreant in its duty towards the union
members, the DOLE must be vigilant to protect the individual interest
for the union members.

Rationale: In Heirs of Teodulo M. Cruz vs. CIR, GR Nos. L-23331-32, December 27,
1969, the Supreme Court states that; The relationship between the union and its
members is fiduciary in character. The union is but an agent of its members for the
purpose of securing for them fair and just wages and proper, good working conditions.
It includes the obligation to give its members as its principals, all information relevant
to the union and labor matters entrusted to it. The court has the duty to protect workers
form the unfair treatment and unjust exploitation not only by oppressive employers but
also by their own unworthy leaders.
When the union leadership is recreant in its duty towards the union members, the courts
must be vigilant to protect the individual interest of the union members.

15. Which of the following is/are grounds to cancel union registration?

Statement 1. 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
 Statement 2. Misrepresentation, false statement or fraud in connection with the
election of officers, minutes of the election of officers and the list of voters
Statement 3. Voluntary dissolution by the members

a. Only Statement 1
b. Statement 1 and 2
c. Statement 2 and 3
d. Statement 1, 2 and 3

Rationale: Prior to its amendment by R.A No. 9481, Article 247 has laid down
ten (10) grounds for cancellation of union registration. After its amendment by
R.A No. 9481, there are only three (3) prevailing grounds to cancel union
registration. Statement 1 and 2 are the grounds for dissolution of the union
through cancellation of its registration is involuntary dissolution while statement
3 is an involuntary dissolution. Involuntary dissolution takes place by operation
of law while voluntary dissolution is occasioned by the act of the union's
members.

16. "Term of office" refers to the fixed period of __ years during which duly elected officers
of a labor organization discharge the functions of their office, unless a shorter period
is stipulated in the organization's constitution and by-laws.

a. 2
b. 3
c. 4
d. 5

RATIONALE: Under Sec. 1, Rule I, Book V, Rules to Implement the Labor Code, as
amended by Department Order No. 40-03, Series of 2003, (Feb. 17, 2003), "Term of
office" refers to the fixed period of 5 years during which duly elected officers of a labor
organization discharge the functions of their office, unless a shorter period is stipulated
in the organization's constitution and by-laws.

17. It is the fundamental law that governs the relationship between and among the
members of a union.

a. a. Collective Bargaining Agreement

b. b. Constitution and By-Laws
c. c. Labor Code
d. d. Company Union

Rationale: The Constitution and By-Laws 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 it, a union as a democratic institution degenerates into nothing more
than a group of individuals governed by mob rule.

18. Any violation of the rights and conditions of membership shall be a ground for the
cancellation of union registration or expulsion of officers from office, whichever is
appropriate. At least how many percent of the members of the union are required to
report such violation to the Bureau?
a. a. 20%
b. b. 30%
c. c. 40%
d. d. 50%

Rationale: Complaints for violations of rights and conditions of union membership may
be signed by at least 30% of all members of the union (Art. 250m Labor Code), if the
 violation affects the general membership. Where the violation affects only a particular
member, he may alone file his complaint.

19. The financial rights of a labor union member include the following, except:

a. The right against unauthorized collection of any fees, dues or contributions

b. The right to prevent funds of the organization from being applied for any
purpose or object other than those expressly provided by the union’s
constitution and by- laws or allowed expressly by written resolution adopted
by the majority of the members at a general meeting duly called for the purpose
c. The right to seek investigation of any irregularity
d. The right to demand or require that every income or revenue as well as every
expenditure of the union shall be recorded or receipted, which record or receipt
shall form part of the financial records of the union.

RATIONALE: Under Article 250 [241] of the Labor Code, the legal right of a union
member to seek investigation of any irregularity is included under the right to
information and not under the category of fiscal rights.

20. What is the most significant effect of E.O. No. 111, issued by former President Corazon
Aquino, to Article 249 (Equity of the Incumbent) of the Labor Code?

a. It removed the "one industry, one union" rule but only as to industry, not
location. Thus, federations or national unions may maintain their existing
affiliates even if they are of different industry, provided they are within the
same region.
b. It imposed the "one industry, one union" rule. Thus, federations or national
unions may allow incumbent affiliates to disaffiliate only for the purpose of
joining a federation or national union on the industry or region in which it
properly belongs.
c. It effectively removed the "one industry, one union" rule. Thus,
federations or national unions may maintain their existing affiliates,
irrespective of the nature of industry or location of affiliates.
d. E.O. No. 111 has no significant effect on Article 249.

RATIONALE: Article 249 was amended by E.O. No. 111. The amendment consists in
the deletion of the second paragraph which reads: "Incumbent affiliates of existing
federation or national union in the industry or region in which it properly belongs or for
the purpose of operating as an independent labor group." In effect, it removes the "one
industry, one union" rule. Thus, the right of federation or national union to maintain
existing affiliates irrespective of their industry or location is affirmed.

21. Which of the following statements is true?

a. In CAILO v. NLRC, the Supreme Court held that, an employee who was
illegally dismissed by the contractor should be ordered reinstated to his
former position or its equivalent without loss of seniority rights not with
the principal but with the contractor.
b. An employee who was illegally dismissed by the contractor should not be
ordered reinstated to his former position or its equivalent without loss of
seniority rights not with the principal but with the contractor.
c. In any case, where there is an evident bad faith shown by the contractor in
illegally dismissing its employee the latter shall not be awarded of any moral
damages.
d. In all instances, if there is evident bad faith shown by them in illegally
dismissing their employees, the principal and the contractor are not jointly
and severally liable for monetary awards, including the costs of suit.

RATIONALE: The Supreme court held that, such act of illegally dismissing the
petitioners through the sham closure of business constitutes an interference and
 restraint on the petitioners in their exercise of their right to self-organization as the latter
were then pursuing affiliation and membership with CAILO. As a consequence thereof,
the private responded is ordered to REINSTATE the petitioners to their same or
substantially equivalent positions at the time or their termination, with three years
backwages and without loss or seniority rights and benefits appurtenant thereto.
(CAILO v. NLRC, G.R. No. 78713)

22. S1: The inclusion as union members of employees who are outside the bargaining unit
shall not be a ground to cancel the registration.
S2: The affiliation of rank-and-file and supervisory unions operating within the same
establishment to the same federation or national union shall not be a ground to cancel
the registration of the union.

a. Both statements are true.

b. Both statements are false.
c. Only the first statement is true.
d. Only the second statement is true.

Rationale: The Rules to Implement the Labor Code expressly provides that the said
statements ( S1 and S2) are prohibited grounds for cancellation of union registration.

23. The following are the rights and conditions of membership in a labor organization,
except:

a. 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.
b. 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.
c. The members 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.
d. 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.

Rationale: Article 250 of the Labor Code on Rights and Conditions of Membership
states that: No person who has been convicted of a crime involving moral turpitude
shall be eligible for reelection as a union officer or for appointment to any position in
the union.

24. S1: The labor-only contractor is considered merely an agent of the principal and the
latter is responsible to the employees of the labor-only contractor as if such employees
has been directly employed by the principal.
S2: The principal becomes solidarily liable with the labor-contractor for all the rightful
claims of the labor-only contractor's employees.

a. Both statements are true.

b. Both statements are false.
c. S1 is true and S2 is false.
d. S2 is true and S1 is false.

Rationale: Article 247 provides that "acting as a labor contractor or engaging in 'cabo
system, or otherwise engaging in any activity prohibited by law" is a ground for
cancellation of union registration, however, an illegal strike is not within the
contemplation of said ground. This phrase should not be construed or interpreted to
mean that it includes an illegal strike. It should be construed to mean such activity
 engaged in by the union that closely relates to and partakes of the character of a labor
contractor engaging in the 'cabo' system.

25. What is the effect of non-members' act of participating in the election of union officers?

a. They are deemed to be ipso facto union members by casting their votes
b. They are deemed to be union members if they clearly indicate in writing their
intention to vote.
c. They remain non-members.
d. They remain non-members, until they clearly indicate in writing their intention
to vote.

RATIONALE: In Tancino vs. Pura-Ferrer Calleja, the Supreme Court held that the
absence of the names of the non-members of the labor union with the Bureau of Labor
Relations does not disqualify them their right to participate in the election. While Article
242 (c) of the Labor Code states that only union members can participate in the election
of union officers, the question of the employees' eligibility can be determined through
the use of applicable payroll period, and employment status during payroll period.
However, when such determination of eligibility was not alleged by the employees, the
Court accepted that their act of casting their votes as also their intention to join the
union. Their act should consider them as ipso facto members of the union.

1. It is the proper remedy against errant union officers that committed acts imputed against
the union.

a. Fine
b. Referendum
c. Expulsion
d. None of the above

RATIONALE: Expulsion from the union, not referendum, is the proper remedy against errant
union officers. According to Kapisanan ng Manggagawang Pinagyakap [KMP] v. Trajano, if the
errant officers have indeed committed the acts imputed against them, the public respondent
should have meted out the appropriate penalty upon them which is expulsion from the union
pursuant to Article 251[242] of the Labor Code and in the light of the ruling in the case of
Duyag, and not merely call for a referendum, to decide the issue. By and large, the holding
of the referendum in question has been rendered moot and academic.
Source — p. 595

2. The following are exceptions to the rule on the exhaustion of intra-union remedies,
EXCEPT:

a. Futility of availing of the intra-union remedies

b. The action involves purely claims for damages
c. The action of the investigating body is legal, whimsical and arbitrary
d. The action is purely a question of law

RATIONALE: One of the exceptions to the rule on the exhaustion of intra-union remedies is
that the action of the investigating body is illegal, whimsical and arbitrary.
Source — p. 596

3. All of the following are requisites for the validity of union dues and special assessments
EXCEPT?

a. Authorization by written resolution of the majority of all the members at a general

membership meeting duly called for that purpose
b. Approval by board resolutions of the directors
c. Secretary’s record of the minutes of said meetings
d. Individual written authorization for check-off duly signed by the employees
RATIONALE: Article 250 (241) speaks of three (3) requisites that must be complied with in
order special assessments for the union’s incidental expenses, attorney’s fees and
representation expenses to be valid and upheld, namely: (1) Authorization by a written
resolution of the majority of all the members at a general membership meeting duly called for
the purpose; (2) Secretary’s record of the minutes of said meeting; and (3) Individual written
authorization for check-off duly signed by the employees concerned.
Source – p. 597

4. The Labor Code strictly prohibits the check-off from any amount due an employee who is
a member of the union, of any special assessment, attorney’s fees, negotiation fees or any
other extraordinary fees other than for mandatory activities, without the individual written
authorization duly signed by the employee. Such authorization must state the __________.

a. amount
b. purpose
c. beneficiary of the deduction
d. all of the above

RATIONALE: Article 250(o) [24(o)] of the Labor Code strictly prohibits the check-off from any
amount due an employee who is a member of the union, of any special assessment, attorney's
fees, negotiation fees or any other extraordinary fees other than for mandatory activities
under the Labor Code, without the individual written authorization duly signed by the
employee. Such authorization must specifically state the amount, purpose and beneficiary of
the deduction.
Source – p. 598

5. In the following cases, individual written authorization for check-off is not required, except:

a. Assessment from non-members of the bargaining agent of reasonable fees equivalent

to the dues and other fees paid by its members, if such non-members accept the
benefits flowing from the CBA. This is the so-called "agency fee " provided under Article
259(e) (248(e)) of the Labor Code.
b. Deductions for fees for mandatory activities such as labor relations seminars and
labor education activities provided under Article 250(0) [24I(o)] of the Labor Code.
c. Check-off for union service fees authorized by law.
d. Deductions from the salaries of the workers for attorney's fees being collected
by the lawyer engaged by the union.

RATIONALE: Attorney’s fees, Negotiation fees and similar charges arising from negotiation or
conclusion of the CBA shall not be imposed on any individual member of the contracting
union. Such fees and charges may be charged only against the union funds in an amount to
be agreed upon by the parties.
Source – p. 599

6. There is nothing in the law that requires that the disqualifications, like authorizations,
must be in ______ form.

a. Legal
b. Proper
c. Individual
d. Lawful

RATIONALE: In the case of Palacol vs. Ferrer-Calleja it provides that “The fact that
disauthorizations were not individual but were collective in form, is of no moment for the
simple reason that the documents containing the disauthorizations have signatures of the
union member. As such, such retractions of the union members were valid.
Source – p. 600
7. It is a method of deducting by the employer from the employee's pay at prescribed periods,
any amount due for fees, fines or assessments.

a. Money-off
b. Check-off
c. Labor-off
d. Employer-off

RATIONALE: Check-off means a method of deducting from the employee’s pay at prescribed
periods, any amount due for fees, fines or assessments. It is a process or device whereby the
employer, on agreement with the union recognized as the proper bargaining representative,
or on prior authorization from its employees, deducts union dues and assessments from the
latter’s wages and remits them directly to the union. Assessments are fees charged to union
members in addition to their normal dues.
Source – p. 601

8. I. The employer’s consent to the check-off arrangement is extremely necessary since it is

obligatory on its part to recognize the right thereto of the SEBA and its members the moment
the requisites for check-off are complied with.
II. It is the law itself which mandates the check-off.

a. Only statement I is true.

b. Only statement II is true.
c. Both statements are true.
d. Neither statement is true.

RATIONALE: The employer’s consent to the check-off arrangement is unnecessary since it is

obligatory on its part to recognize the right thereto of the SEBA and its members the moment
the requisites for check-off are complied with.
Source – p. 602

9. I. The employer certainly cannot deduct any amount by way of check-off from the salaries
or wages of employees unless the SEBA informs it of the names of the employees and the
particulars of the deductions to be made.
II. Normally, this is done by the SEBA periodically.
III. The provision of law makes the employer directly liable for the payment to the SEBA of
union dues and assessments that the former fails to deduct from its employees' salaries and
wages pursuant to a check-off stipulation.

a. I, II, and III is true

b. I and II is false
c. I and II is true
d. II and III is false

RATIONALE: One of the obligations of the SEBA is to inform the employer of the names of
employees subject of the check-off and the particulars of the deductions to be made. Hence,
The employer certainly cannot deduct any amount by way of check-off from the salaries or
wages of employees, unless the SEBA informed if of the names of the employees and the
particulars of the deductions to be made; and this is done by the SEBA periodically. In
addition, no provisions of law makes the employer directly liable for the payment to the SEBA
of union dues and assessments that the former fails to deduct from its employees' salaries
and wages pursuant to a check-off stipulation
Source – p. 603

10. Financial Statement Report should be submitted _________?

a. promptly, according to the case of Verceles vs. Bureau of Labor and Employment
b. subsequently, according to the case of Vegas vs. DOLE
 c. negligently, as stated in the case of Bicol Transportation Employees Mutual
Association vs. A. L. Ammen Transportation Co., Inc.
d. after demand has been made, as stated in the case of Coastal Subic Bay Terminial,
Inc. v. Department of Labor and Employment-Office of the Secretary.

RATIONALE: In the case of Verceles, the petitioners contend that the belated submission of
financial statements reports had been rendered moot and academic by their eventual
compliance. CA found that the financial statements for the years 1995 up to 1997 were
submitted to DOLE-NCR only on 1998 while that for the year 1998 was submitted only on
1999.
As a result of said findings, the above contentions of the petitioners were all debunked
by the Supreme Court. It held that the passage of the resolutions which supposedly cured
the lapses committed by the association's officers and the reiteration of the approval of the
general membership of the acts and collateral actions of the association's officers cannot
redeem the petitioners from their predicament. The obligation to hold meetings and render
financial reports is mandated by the union's constitution and bylaws.
Source – p. 604

11. In the event that the petitioning union, in a single-union certification election fails to
muster the majority of the valid votes cast, it will produce what effect?

a. The previous SEBA before the election shall remain in effect and the union shall be
certified.
b. There shall be another election in the span of 1 month from the conduct of the
certification election to determine or to certify the a union for the establishment.
c. The no union choice prevails, no SEBA and no new petition for certification
election can be filed within 1 year from the conduct of the certification election.
d. A union is arbitrarily certified by the Secretary of Labor and Employment for the
employees until a new petition for a union is filed.

RATIONALE: Union has the concomitant right not to join one. It is on this basis that "No
Union" is always a choice in all certification elections.
In the event that the petitioning union, in a single-union certification election, fails to
muster the majority of the valid votes cast and the "No Union" choice wins, there shall be no
SEBA and no new petition for certification election can be filed within one (1) year from the
conduct of the certification election pursuant to the statutory bar rule.
Source – p. 605

12. What number of members is required to report any violation of the rights and conditions
of membership to the union?

a. 30% of its members or any member or members especially concerned.

b. 70% of its members or any member or members especially concerned.
c. A majority of all its members.
d. A majority of a quorum.

RATIONALE: Under Article 250 [241], at least 30% of the members of a union or any member
or members specially concerned may report any violation of the rights and conditions of
membership provided therein, including the issue of the proper handling and disposition of
the funds and properties of the union.
Source – p. 606

13. No complaint or petition for the inquiry or examination of the financial records and books
of accounts as well as other records of any legitimate labor organization should be entertained
during the _______ day freedom period or within 30 days immediately preceding the date of
the election of union officers.

a. 60
b. 70
 c. 80
d. 90

RATIONALE: No complaint or petition for the inquiry or examination of the financial records
and books of accounts as well as other records of any legitimate labor organization should be
entertained during the 60 day freedom period or within 30 days immediately preceding the
date of the election of union officers. (Section 15, Rule XIII, Book V, Rules to Implement the
Labor Code as amended by Department Order No. 40-03, Series of 2003 [Feb. 17, 2003])
Source – p. 607

14. The first pre-audit conference shall be scheduled within ____ days from receipt by the
Audit Examiner of the decision granting the conduct of an audit.

a. Fifteen (15)
b. Five (5)
c. Ten (10)
d. Eight (8)

RATIONALE: 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.
Source – p. 608

15. Appeal from the decision of the Med-Arbiter denying the conduct of the audit and from
the results of the audit may be filed by any of the parties with whom?

a. DOLE Secretary
b. BLR Director
c. DOLE Regional Director
d. Audit Examiner

RATIONALE: Appeal from the decision of the Med-Arbiter denying the conduct of the audit
and from the results of the audit may be filed by any of the parties with the BLR Director
which shall be resolved in accordance with the provisions of Section 16, Rule XI, Book V of
the Rules to Implement the Labor Code, as amended by DO 40-03, Series of 2003.
Source — p. 609

16. The following statements talk about Prescription of Action involving union funds. Which
of the following is incorrect?

a. A complaint or petition for audit or examination of funds and books of accounts

prescribes within 3 years from the date of submission of the annual financial report
to the DOLE or from the date the same should have been submitted as required by
law, whichever comes earlier.
b. The failure to comply with the submission of periodic financial reports required by law
and such rules and regulations promulgated thereunder six months after the
 effectivity of RA No. 6715 on March 21 1989, will automatically cancel the registration
of such labor organization.
c. A labor organization which has submitted the financial report required under
the Labor Code shall be subject to the provision on the prescriptive period.
d. A labor organization not duly registered by the Department of Labor and Employment
is not subject to the provision on the prescriptive period even if the organization
submits a financial report required under the Labor Code.

RATIONALE: The provision on prescription of actions involving union funds applies only to a
legitimate labor organization.
Source – p. 610

17. Under the Labor Education and Research Program for Workers, the DOLE is required to:

a. Implement a labor education program for its members to inform them on the
provisions of its Constitution and By-Laws, CBA, the prevailing labor relations system
and all their rights and obligations under existing labor laws
b. Develop, promote and implement appropriate labor education and research
programs on the rights and responsibilities of workers and employers
c. Maintain a special fund for labor education and research
d. All of the above

RATIONALE: Section 1, Rule XX, Book V of Rules to Implement the Labor Code, as amended
by Department Order No. 40-03 provides that the DOLE is required to develop, promote and
implement appropriate labor education and research programs on the rights and
responsibilities of workers and employers.
Source – p. 611

18. The needs of workers should be the primary determinant in choosing the areas of
discussion in conducting labor education seminars. The subject should include, but not be
limited to, the following:
I. Union Constitution and By-Laws
II. Company rules and regulation
III. Mode of settling disputes
IV. Rights and obligations of workers under the Labor Code and social legislation

a. Only I
b. Both II and III
c. Both I and IV
d. All

RATIONALE: This is to educate each and every employee so is the employer the basic rights
of employees in their organization. Every employee should be aware of company rules and
regulations, employees rights and ways in settling their grievances against co-workers or even
against their employer.
Source – p. 612

19. How many percent of the union members concerned is needed to apply for the conduct
of an investigation to determine the reasons why no seminar was conducted and/or to
ascertain the misuse or illegal disbursement from the Labor Education and Research Fund
(LERF)?

a. 10%
b. 15%
c. 20%
d. 25%
e. 30%
RATIONALE: Section 12, Rule XX, Book V. “Sec. 12. Failure to conduct seminars. — The
Bureau, on its own initiative or upon application of 30% of the union members concerned,
may conduct an investigation to determine the reasons why no seminar was conducted
and/or to ascertain the misuse or illegal disbursement from the LERF, and based on such
findings may take appropriate actions under the union constitution and by-laws and other
applicable existing laws.”
Source – p. 613

20. Statement 1: Legitimate labor organizations may own personal, but not real property, for
the use and benefit of the labor organizations and its members.
Statement 2: Legitimate labor organizations may sue and may be sued in its registered name.

a. Both statements are true.

b. Both statements are false.
c. Statement 1 is true.
d. Statement 2 is true.

RATIONALE: Article 251 [242]. Rights of Legitimate Labor Organizations. - A legitimate labor
organization shall have the right:
xxx
(d) To own property, real or personal, for the use and benefit of the labor organization and
its members;
Source – p. 614

21. The right of a legitimate labor organization to represent its members primordially involves
the right to be certified as the sole and exclusive bargaining agent (SEBA) of all the employees
in an appropriate bargaining unit for purposes of collective bargaining. This right deprives its
individual members of their concomitant right to file a case in their own names, and their
right to withdraw from any case filed by the union on their behalf.

a. Sentence 1 is False, Sentence 2 is True

b. Sentence 1 is False, Sentence 2 is False
c. Sentence 1 is True, Sentence 2 is False
d. Both sentences are True.

RATIONALE: In Aldovino v. NLRC, it was pronounced that although the right of the union as
a legitimate labor organization to represent its members is expressly guaranteed under Article
251 [242], this right, however, does not deprive its individual members of their concomitant
right to file a case in their own names, nor of their right to withdraw from any case filed by
the union on their behalf. More importantly, the individual member may seasonably exercise
his option to withdraw from a case filed by his union if he does not want to be bound thereby.
Source – p. 615

22. Statement 1: A union which is duly registered with the BLR of the Department of Labor
and Employment has its own legal personality.
Statement 2: Consequently, it has the right and authority to sue and be sued in its registered
name.

a. Only Statement 1 is true

b. Only Statement 2 is true
c. Both Statements are true
d. Both Statements are False

RATIONALE: Union has its own legal personality. A union which is duly registered with the
BLR of the Department of Labor and Employment has its own legal personality. Consequently,
it has the right and authority to sue and be sued in its registered name.
Source – p. 616
23. Under the Right to sue and be sued in the union's registered name, which of the following
is false?

a. The union has its own legal personality.

b. The action should be brought on behalf of its members.
c. The action should be brought in the name of the union's President.
d. Waivers secured not through the union indicate bad faith.

RATIONALE: In the case of Brillo v. Buklatan, G.R No. L-2213, Oct 14, 1950, 87 Phil. 519, it
was held that in order for an action to be valid, it must be brought in the name of the union,
and not in the name of the union’s president.
Source – p. 617

24. The rule on representation under the Rules of Court states that: “Sec 3. Representative
of parties. – Where the action is allowed to be prosecuted or defended by a representative or
someone acting in a fiduciary capacity, the beneficiary shall be included in the title of the
case and shall be deemed to be the real party in interest. A representative may be the following
EXCEPT:

a. A party authorized by law or these Rules

b. A trustee of an express trust
c. Any employee
d. An executor

RATIONALE: Rationale: “Sec 3. Representative of parties. – Where the action is allowed to be

prosecuted or defended by a representative or someone acting in a fiduciary capacity, the
beneficiary shall be included in the title of the case and shall be deemed to be the real party
in interest. A representative may be a trustee of an express trust, a guardian, an executor or
administrator, or a party authorized by law or these Rules..”
A labor union is one such party authorized to represent its members under Article
251 (a)[242(a)] of the Labor Code which provides that a union may act as the representative
of its members for the purpose of collective bargaining.
Source – p. 618

25. Failure to comply with the requirements mentioned in Art. 252 shall not be a ground
for _______ of union registration.

a. Suspension
b. Termination
c. Expulsion
d. Cancellation

RATIONALE: Failure to comply with the requirements mentioned in Art. 252 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.
Source – p. 619