ARTICLE 250.

RIGHTS AND CONDITIONS OF MEMBERSHIP IN A LABOR ORGANIZATION

The following are the rights and conditions of membership in a labor organization:

a. No arbitrary or excessive initiation fees shall be required of the members of a legitimate labor
organization nor shall arbitrary, excessive or oppressive fine and forfeiture be imposed
b. The members shall be entitled to full and detailed reports from their officers and
representatives of all financial transactions as provided for in the constitution and by-laws of the
organization
c. The members shall directly elect their officers, including those of the national union or
federation, trade center or any similar aggrupation to which their union is affiliated, by secret
ballot at intervals of 5 years.
a. No qualification requirements for candidacy to any position shall be imposed other than
membership in good standing in subject labor organization
b. The secretary or any other responsible union officer shall furnish the Secretary of Labor
and Employment with a list of the newly-elected officers — together with the appointive
officers or agents who are entrusted with the handling of funds within 30 calendar days
after the election of officers or from the occurrence of any change in the list of officers
of the labor organization
d. The members shall determine by secret ballot, after due deliberation — any question of major
policy affecting the entire membership of the organization,
a. UNLESS the nature of the organization or force majeure renders such secret ballot
impractical  in which case the board of directors of the organization make the
decision in behalf of the general membership
e. No labor organization shall knowingly admit as member or continue in membership any
individual who belongs to a subversive organization or who is engaged directly or indirectly in
any subversive activity
f. No person who has been convicted of a crime involving moral turpitude shall be eligible for
election as union officer or for appointment in the union
g. No officer, agent or member of a labor organization shall collect any fees, dues, or other
contributions in its behalf or make any disbursement of its money or funds unless he is duly
authorized pursuant to its constitution and by-laws
h. Every payment of fees, dues or other contributions by a member shall be evidenced by a receipt
signed by the officer or agent making the collection and entered into the record of the
organization to be kept and maintained for the purpose
i. The funds of the organization shall not be applied for any purpose or object other than those
expressly provided by its constitution or by-laws or those expressly authorized by written
resolution adopted by the majority of the members at a general meeting duly called for the
purpose
j. —
a. —
i. Every income or revenue of the organization shall be evidenced by a record
showing its source, [and]
 ii. Every expenditure of its funds shall be evidenced by a receipt from the person
to whom the payment is made — which shall state the date, place, and purpose
of such payment
iii. Such record or receipt shall form part of the financial records of the organization
b. Any action involving the funds of the organization shall prescribe after 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
i. PROVIDED that this provision shall apply only to a legitimate labor organization
which has submitted the financial report requirements under this Code
ii. PROVIDED FURTHER that failure of any labor organization to comply with the
periodic financial reports required by law and such rules and regulations
promulgated thereunder 6 months after the effectivity of this Act shall
automatically result in the cancellation of union registration of such labor
organization
k. The officers of any labor organization shall not be paid any compensation other than the salaries
and expenses due to their positions as specifically provided for in its constitution and by-laws, or
in a written resolution duly authorized by a majority of all the members at a general
membership meeting duly called for the purpose.
a. The minutes of the meeting and the list of participants and ballots casts shall be subject
to inspection by the Secretary of Labor or his duly authorized representatives.
b. Any irregularities in the approval of the resolutions shall be a ground for impeachment
or expulsion from the organization
l. —
a. The treasurer of any labor organization and every officer thereof who is responsible for
the account oof such organization for the collection, management, disbursement,
custody or control of the funds, money and other properties of the organization,
b. Shall render to the organization and to its members a true and correct account of all
moneys received and paid by him
i. Since the last day on which he rendered such account, and of all bonds,
securities and other properties of the organization entrusted to his custody or
under his control.
ii. The rendering of such account shall be made:
1. At least once a year within 30 days after the close of its fiscal year
2. At such other times as may be required by a resolution of the majority
of the members of the organization
3. Upon vacating his office
c. The account shall be audited and verified by affidavit and a copy thereof shall be
furnished the Secretary of Labor
m. The books of accounts and other records of the financial activities of any labor organization shall
be open to inspection by any officer or member thereof during office hours
n. No special assessment or other extraordinary fees may be levied upon the members of a labor
organization
 a. UNLESS authorized by a written resolution of a majority of all the members at a general
membership meeting including the list of all the members present, the votes cast, the
purpose of the special assessment or fees and the recipient of such assessment or fees.
b. The record shall be attested to by the president
o. Other than for mandatory activities under the Code,
a. NO special assessments, attorney’s fees, negotiation fees or any other extraordinary
fees may be checked off from any amount due to an employee WITHOUT an individual
written authorization duly signed by the employee
i. The authorization should specifically state the amount, purpose and beneficiary
oof the deduction
p. —
a. It shall be the duty of any labor organization and its officers to inform its members on
the provisions of its constitution and by-laws, all their rights and obligations under
existing labor laws
b. For this purpose, registered labor organizations may assess reasonable dues too finance
labor relations seminars and other labor education activities
c. Any violation of the above rights and conditions of membership shall be a ground for
cancellation of union registration or expulsion oof officer from office, whichever is
appropriate
i. At least 30% of all the members of union or any member or members specially
concerned may report such violation too the Bureau
1. The Bureau shall have the power to hear and decide any reported
violation to meet the appropriate penalty

RIGHTS OF UNION MEMBERS

1. Political right — member’s right to vote and be voted for, subject to lawful provisions on—
a. Qualifications
b. Disqualifications
2. Deliberative and decision-making right — member’s right to participate in deliberations on
major policy questions and decide them by secret ballot
3. Rights over money matters —
a. Member’s right against—
i. Excessive fees
ii. Unauthorized collection of contributions or unauthorized disbursements
b. Right to require adequate records of income and expenses and the right of access to
financial records
c. Right to vote on officers’ compensation
d. Right to vote on proposed assessment and be deducted a special assessment only with
the member’s written authorization
4. Right to information — member’s right to be informed about the organization’s constitution and
by-laws and the collective bargaining agreement and about labor laws

NOTE: Membership in the union does not di vest the members of their primary standing as employees —
an individual employee stands apart from the union. He has the personality and the right to make
individual personal representation to the employer.
ELIGIBILITY FOR MEMBERSHIP

- Depends on the union’s constitution and by laws

o Art 260 gives a labor organization the right to prescribe its own rules for acquisition or
retention of membership

QUALIFICATION:

- Employee is already qualified for union membership starting on his first day of service (Art 292)

EMPLOYEE’S MEMBERSHIP IN A UNION DOES NOT NECESSARILY MEAN COVERAGE BY THE CBA

- CBA defines its coverage as agreed by the parties

- It may only cover regular employees, and/or exclude certain positions or jobholders

AS WELL AS MEMBERSHIP IN THE CBU DOES NOT MEAN MEMBERSHIP IN THE UNION

- Example: members of certain religious sects (Iglesia) do not join unions but can be a member of
a bargaining unit

INCLUSION IN THE CBU DEPENDS ON THE DETERMINATION OF ITS APPROPRIATENESS UNDER ART 240
& 26

- Inclusion or membership in a union depends on the constitution and by laws WITHOUT

PREJUDICE to Art 292(c)
- Inclusion in the CBA depends on the stipulations in the CBA itself

VOTES:

1. CBU members vote to select a bargaining union or to ratify a CBA

2. ONLY union members can vote to elect union officers, to strike or not to strike, or to decide
major policy issues in the union

ELECTION OF UNION OFFICERS

1. Intervals of 5 years (term of office of union officers)

a. National union
b. Federation
c. Trade union center
2. Positions to fill up
3. Where and how the election should be done  based on the union’s constitution and by-laws
a. Absence thereof  IR of Book V
i. Incumbent president to create an election committee within 60 days before
expiration of the incumbent officers’ term
ii. Powers and duties of the election MUST NOT contradict the LC

OFFICERS WITH EXPIRED TERM DO NOT CALL AN ELECTION

- At least 30% of the members to file a petition with the DOLE Regional Office (Rule XII)

ELIGIBILITY OF VOTERS
 - Only members of the union can take part in the election of union officers

LABOR ORGANIZATION MAY PRESCRIBE REASONABLE RULES AND REGULATIONS

1. Labor organization may prescribe reasonable rules and regulations

a. Reasonable period of prior membership — 6 months or a year
b. Payment of dues
i. Any rule denying dues-delinquent members the right to vote must be applied
uniformly
ii. Members must be afforded a reasonable opportunity to pay dues, including a
grace period

Note: submission of the employees’ name with the Bureau of Labor Relations as qualified members of
the union is not a condition sine qua non to enable said members to vote

CASES

PALACOL
On special assessments; Art 241(n) and (o)

FACTS

- Respondent Union — CB agent of all regular salesmen and helpers, and relief helpers of the
Company (Manila Plant and Metro Manila Sales of Coke) — concluded a new CBA with the latter
o Among the compensation benefits was a general salary increase to be given in lump sum
including computation of actual commissions earned based on the new rates of increase
- President of the Union submitted to the Company the ratification by the union members of the
new CBA and authorization for the company to deduct union dues equivalent to P10 every
payday or P20 every month
o + 10% by way of special assessment from the CBA lump sum pay granted to the union
members (subject of the petition)

CONTENTION

1. Petitioners — 10% special assessment is a violation of Art 241(o) in relation to Art 222(b) of the
LC
a. Art 222(b). Appearances and Fees
i. No attorney’s fees, negotiation fees or similar charges of any kind arising from
any CB negotiations or conclusion of the CBA shall be imposed on any individual
member of the contracting union:
b. Art 241(o). Rights and conditions of membership in a labor organization
i. Other than for mandatory activities under the Code, no special assessments,
attorney’s fees, negation fees or any other extraordinary fees may be checked
off from any amount due to an employee WITHOUT an individual written
authorization duly signed by the employee
2. Respondent Union — petitions have the proper indorsement and approval of the general
membership, and complied with the legal requirements of Art 241(n) & (o) of the LC
a. Art 241(n). Rights and conditions of membership in a labor organization
 i. No special assessment or other extraordinary fees may be levied upon the
members of a labor organization UNLESS authorized by a written resolution of a
majority of all members at a general membership meeting duly called for the
purpose…

RULING (FACTS)

1. Med-Arbiter — in favor of the petitioner  Company to remit the amount it had kept in trust
directly to the rank-and-file personnel without delay
2. BLR — Med-Arbiter ruling was reversed
a. Special assessment is authorized under Art 241(n) of the LC

ISSUE

1. Whether the deduction of the 10% special assessment by the Union was made in accordance
with the requirements provided by law

RULING

1. No. The question special assessment violates Art 241(n) and (o), and Art 222(b). Employees are
protected by law from unwarranted practices that diminish their compensation without their
known edge and consent. (Galvadores Case)
a. The Union is correct in citing Art 241, however, they failed to comply with the
requirements of paragraph (n) in the said provision (levy)
i. It held local membership meetings on separate occasions, on different dates
and at various venues,
1. Where there MUST BE a general membership meeting
ii. The minutes of the local membership meeting were recorded by the union
director
1. Where it SHOULD BE the union secretary
iii. The minutes submitted to the Company contained no list of the members
present and no record of the votes cast
b. The Union is correct in citing Art 241, however, they failed to comply with the
requirements of paragraph (o) in the said provision (check-off)
i. Requires an individual written authorization duly signed by every employee in
order that a special assessment may be validly checked-off
1. There can be no valid check-off since majority of the union members
had already withdrawn their individual authorizations

DEL PILAR ACADEMY VS DEL PILAR ACADEMY UNION

On the valid collection of agency fees from non-union members (Art 248(e)); no requirement of individual
authorization to non-members

FACTS

- Respondent Union is the certified bargaining representative of teaching and non-teaching

personnel of the petitioner school, entered into a CBA with the latter — granting salary increase
and other benefits to the teaching and non-teaching staff
 o Salary increase
o Vacation leave with pay
- Respondent assessed agency fees from non-union employees and requested the petitioner to
deduct assessment from the employees’ salaries and wages
- Petitioner refused since non-union employees were not amenable to it
- Respondent negotiated for the renewal of the CBA
- Petitioner refused to renew unless the provision regarding the entitlement to 2 months summer
vacation leave with pay will be amended
o By limiting the same to teachers who have rendered at least 3 consecutive academic
years of satisfactory service
- Respondent objected since it will be a diminution of benefits
- Petitioner refused to sign the CBA resulting in a deadlock

CONTENTION

1. Respondent — unfair labor practice

2. Petitioner — it justified the non-deduction of the agency fees by the absence of individual check
off authorization from the non-union employees (Art 241(o))

RULING (FACTS)

1. LA — Petitioner school committed an error by not having a collective agency fee due to the
workers who are non-union members but are included in the bargaining unit being represented
by the respondent Union
a. The Petitioner’s fear regarding individual dues without authorization for non-union
members has no basis in fact or in law. It was an error to refuse deduction of
corresponding agency fees which generally belongs to a union
i. Recipients of benefits should be made to pay the same considerations imposed
upon union members

ISSUE

1. Whether the respondent Union is entitled to collect agency fees from non-union members
2. Whether an individual written authorization is necessary for a valid check off

RULING

1. Yes. The collection of agency fees in an amount equivalent to union dues and fees from
employees who are not members, is recognized by Art 248(e) of the LC
a. Employees of an appropriate CBU who are not members of the recognized CB agent
may be assessed reasonable fees equivalent to the dues and other fees paid by the
recognized CB agent, if such non-union members accept the benefits under the CBA…
2. No requirement of written authorization from the non-union employees is necessary if the non-
union employees accept the benefits resulting from the CBA
a. …provided that an individual authorization required under Art 241(o) of the LC shall NOT
apply to non-members of recognized CB agent