Slide 2: Collective Bargaining
neither party shall terminate nor modify such agreement
-Collective bargaining is a process where both parties,
labor and management, agree to fix and administer terms
and conditions of employment which must not be below
the minimum standards fixed by law. This also sets a
mechanism for resolving the parties' grievances (Art 263
[252, LC).
-Collective Bargaining is a right duly guaranteed under
the Constitution. Section 3, Article XIII provides that the
State shall guarantee the rights of all workers to
collective bargaining and negotiations (Chan, Labor
Law, 2019).
-In the absence of an agreement or other voluntary
arrangement providing for a more expeditious manner of
collective bargaining, it shall be the duty of the employer
and representatives of the employees to bargain
collectively (Article 262 [251], Labor Code).
- Collective bargaining is defined as a negotiation
towards a collective agreement, it is a process, a right
and a duty (Me).
-It is a mutual responsibility of the employer and the
union and this is characterized us a legal obligation
-It is not equivalent to an adversarial litigation where
rights and obligations are delineated, and remedies
applied but it is simply a process of finding a reasonable
solution to a conflict and harmonizing opposite positions
into a fair and reasonable compromise [Caltex Refinery
Employees Assoc v Brillantes (1997)].
Distinction Between “Collective Bargaining” and
“Dealing with Employer”
-To bargain collectively is a right that may be acquired
by a labor organization after registering itself with the
Department of Labor and Employment and after being
recognized or certified by DOLE as the exclusive
bargaining representative (EBR) of the employees.
Dealing with employer, on the other hand, is a generic
description of interaction between employer and
employees concerning grievances, wages, work hours
and other terms and conditions of employment, even if
the employee’s group is not registered with the
Department of Labor and Employment
Who has the duty? Both the Employer and the
representatives of the employees.
1
GR: The duty to bargain collectively shall also mean that
during its lifetime. [Art. 264]
Slide 3: 1st Kind of Collective Bargaining
A Single Enterprise Bargaining  involves a CBA
negotiation between one certified SEBA and one
employer only
-It is one where any voluntarily recognized or certified
labor union may demand negotiations with its employer
for terms and conditions of work covering employees in
the bargaining unit concerned.
Any certified SEBA may demand negotiations with the
employer regarding the terms and conditions of
employment of the employees in the bargaining unit it
represents.
The SEBA should submit such intention in writing to the
employer together with its proposals for collective
bargaining. The SEBA and the employer may adopt
procedures and processes they may deem appropriate
and necessary for the early termination and conclusion
of their negotiations.
They should name their respective representatives to the
negotiations, schedule the number and frequency of the
meetings, and agree on the wages, benefits and other
terms and conditions of employment for all the
employees covered in the bargaining unit.
While there can be two or more unions in the enterprise,
only one union is able to gain recognition as the
collective bargaining agent to represent the workers in
an ‘appropriate bargaining unit’. The representation
status of the collective bargaining agent is for five years,
which is the maximum duration of a CBA.
Slide 4: 2nd Kind of Collective Bargaining
The second kind of Collective Bargaining is the Multiple
Employer Bargaining. It is one where a legitimate labor
union or unions and employers may agree in writing to
come together for the purpose of collective bargaining,
provided that i) only legitimate labor unions which are
incumbent exclusive bargaining agents may participate
and negotiate in multi-employer bargaining; (ii) only
employers with counterpart legitimate labor unions
which are incumbent SEBAs may participate and
negotiate in multi-employer bargaining; and (iii) only
those legitimate labor unions who pertain to an employer
unit who consent to multi-employer bargaining may
participate in multi-employer bargaining.
Structural conditions for multi-employer bargaining
exists when there are two or more employers negotiating
with one or more unions. Multiple employer bargaining
refers to all situations in which two or more employers
bargain or negotiate jointly, through a committee or
association, with one or more labor organizations
representing employees (or workers) of the counterpart
employers party, with respect to wages, working
conditions and other terms and conditions of
employment (ILO, 2015).
Although multi-employer bargaining has a legal basis,
due to limitations, it is not practiced in the Philippines.
Likewise, there are opportunities that were identified
which can still be strengthen through policy issuance and
hopefully could pave the way for its practice. Hence,
there is a need to create an enabling environment that
requires collective approach both from the government
and social partners. . To implement multi- employer
bargaining, there is a need to review DOLE Department
Order No. 40-03, specifically on union membership
coverage, workers representation, and provisions on
multi-employer bargaining.
Collective bargaining is enterprise-based. There is no
tradition of industry-based bargaining in the Philippines.
Slide 5: Legal Bases
The Constitutional mandate is implemented through
Articles 261 to 264 and Article 259 of the Labor Code.
These were formerly Articles 250 to 253 and Article
248.
These articles provide unions with the right to collective
bargaining and negotiations on behalf of employees at
the enterprise.
Slide 6: Duty to bargain
-The duty to bargain collectively is the performance of a
mutual obligation to meet and convene promptly and
expeditiously in good faith for the purpose of negotiating
an agreement with respect to wages, hours of work and
all other terms and conditions of employment including
proposals for adjusting any grievances or questions
arising under such agreement and executing a contract
incorporating such agreements if requested by either
party but such duty does not compel any party to agree
to a proposal or to make any concession (Art 263 [252],
Labor Code).
-The Labor Code imposes upon both the employer
and the representative of the employees the duty to
2
bargain collectively. (Oriental Tin Can Labor Union
v SOLE [1998])
 
Slide 7: Duty to bargain
-When there is a collective bargaining agreement already
in place, the duty to bargain collectively shall also mean
that neither party shall terminate nor modify such
agreement during its lifetime.
However, either party can serve a written notice to
terminate or modify the agreement at least sixty (60)
days prior to its expiration date.
It shall be the duty of both parties to keep the status quo
and to continue in full force and effect the terms and
conditions of the existing agreement during the 60-day
period and/or until a new agreement is reached by the
parties.  (Art 264 [253], Labor Code).
This duty extends to discussing proposals for adjusting
any grievances or questions arising under such
agreement, or executing a contract incorporating such
agreements if requested by either party.
Duty to Bargain does NOT include:
Any legal duty on the employer to initiate contract
negotiation [Kiok Loy v. NLRC, G.R. No. L-54334
(1986)]
And it also does not include:
the obligation to reach an agreement. -The laws invite
and contemplate a collective bargaining contract, but
they do not compel one. [Tabangao Shell Refinery
Employees Association v. Pilipinas Shell Petroleum
Corporation, G.R. No. 170007 (2014)]
This is because, while the law makes it an obligation for
the employer and the employees to bargain collectively
with each other, such compulsion does not include the
commitment to precipitately accept or agree to the
proposals of the other. All it contemplates is that both
parties should approach the negotiation with an open
mind and make reasonable effort to reach a common
ground of agreement. [Union of Filipro Employees v.
Nestle, GR 158930-31 (2008)
- The failure to reach an agreement after negotiations
continued for a reasonable period does not establish a
lack of good faith.
Slide 8: Employer’s Duty
-The employer has no duty to bargain when the majority
status of the employees’ representative is not
established. (Philippine Diamond Hotel and Resort v
Philippine Diamond Hotel Employees Union, GR
158075)
-A violation to bargain collectively by an employer
constitutes ULP (Art 259 [g], LC)
-The employer cannot discontinue the grant of the
benefits embodied in the CBA which just expired as it is
duty-bound to maintain the status quo by continuing to
give the same benefits until a renewed or a new CBA is
reached by the parties.
Note: The employer is not under any legal obligation to
initiate collective bargaining negotiations.
1st bullet: a natural consequence of this is that the
employer has the right to demand of the asserted
bargaining agent proof of its representation of its
employees.
-Under the philosophy or principle of collective
responsibility, an employer who bargains in good faith
should be entitled to rely upon the promises and
agreements of the union representatives with whom he
must deal under the compulsion of law and contract. The
collective bargaining process should be carried on
between parties who can mutually respect and rely upon
the authority of each other.
Where, however, collective bargaining process is not
involved, and what is at stake are back wages already
earned by the individual workers by way of overtime,
premium and differential pay, and final judgment has
been rendered in their favor, the real parties in interest
with direct material interest, as against the union which
has only served as a vehicle for collective action to
enforce their just claims, are the individual workers
themselves. Authority of the union to waive or quitclaim
all or part of the judgment award in favor of the
individual workers cannot be lightly presumed but must
be expressly granted, and the employer, as judgment
debtor, must deal in all good faith with the union as the
agent of the individual workers. The Court in turn should
certainly verify and assure itself of the fact and extent of
the authority of the union leadership to execute any
compromise or settlement of the judgment on behalf of
the individual.
If the SEBA is unchallenged during the 60-day freedom
period, the majority status of the existing SEBA is
deemed uninterrupted and continuing and thus should be
3
respected by the employer. A PCE challenging the
majority status of the existing SEBA should be filed
within the 60-day period, and not before or after such
period. Upon the expiration of the said CBA the
employer is duty bound to continue its recognition of the
majority status of the incumbent as SEBA until a new
one is drafted.
Slide 9: Purpose of Collective Bargaining
*The ultimate purpose of collective bargaining is to
reach an agreement resulting in a contract binding on the
parties.
Mandatory Subjects of Bargaining:
1.Wages
2. Hours of work
3. and all other terms and conditions of employment
including:
a. proposals for adjusting any grievances and procedure
for such, or
b. questions arising under such agreement, and
c. executing a contract incorporating such agreements,
d. if requested by either party, but such duty does not
compel any party to agree to a proposal or to make any
concession. [Art. 263]
Examples of these Mandatory subject for bargaining are:
The refusal to negotiate a mandatory subject of
bargaining is an unfair labor practice, although either
party has every desire to reach an agreement and
earnestly and in all good faith bargains to that end.
[Azucena]
The duty to bargain is limited to mandatory bargaining
subjects; as to other matters, he is free to bargain or not
to bargain.
Over mandatory subjects, a party may insist on
bargaining, even to the point of deadlock, and his
insistence will not be construed as bargaining in bad
faith.
Over a non-mandatory subject, on the other hand, a party
may not insist on bargaining to the point of impasse,
otherwise his insistence can be construed as bargaining
in bad faith.
The CBA should not provide for benefits below the
standard prescribed by law, award or order(sub-
minimum CBA)
The grievance procedure is part of the continuous
process of collective bargaining. It is intended to
promote a friendly dialogue between labor and
management as a means of maintaining industrial peace.
(Republic Savings Bank v CIR, 21 SCRA 226 [1967]
As in all other contracts, the parties in a CBA may
establish such stipulations, clauses, terms and conditions
as they may deem convenient provided they are not
contrary to law, morals, good customs, public order or
public policy. [Manila Fashions v. NLRC, G.R. No.
117878 (1996)]
Determining the Character of the Bargaining Issue is
important. The question as to what are mandatory and
what are merely permissive subjects of collective
bargaining is of significance on the right of a party to
insist on his position to the point of stalemate.
A party may refuse to enter into a collective bargaining
contract unless it includes a desired provision as to a
matter which is a mandatory subject of collective
bargaining.
[But] a refusal to contract is in substance a refusal to
bargain about matters which are mandatory subjects of
collective bargaining unless the agreement covers a
matter which is not a mandatory subject.
It is no answer to the charge of refusal to bargain in good
faith that the insistence on the disputed clause was not
the sole cause of the failure to agree or that agreement
was not reached with respect to other disputed clauses.
Such refusal will not be deemed as an unfair labor
practice.
However, if a party refuses to contract based on an issue
which is not a mandatory bargainable issue, the party
will be guilty of ULP. [Samahang Manggagawa sa Top
Form v. NLRC, G.R. No. 113856 (1998)]
There is a Test for Mandatory Bargainable Issues. For
“other terms and conditions of employment” to become
a mandatory bargainable issue, they must have a
connection between the proposal and the nature of the
work. The nexus between the Nature of Employment and
the Nature of the Demand must be established.
In order for a matter to be subject to mandatory
collective bargaining, it must materially or significantly
affect the terms and conditions of employment. Whether
the agreement concerns a mandatory subject of
4
bargaining depends not on its form, but on its practical
effect. [Azucena]
NEGOTIATIONS BAR RULE. Under this rule, no
petition for certification election should be entertained
while the sole and exclusive bargaining agent and the
employer have commenced and sustained negotiations in
good faith within the period of one (1) year from the date
of a valid certification, consent, run-off or re-run
election or from the date of voluntary recognition.
Once the CBA negotiations have commenced and while
the parties are in the process of negotiating the terms and
conditions of the CBA, no challenging union is allowed
to file a petition for certification election that would
disturb the process and unduly forestall the early
conclusion of the agreement.
Slide 10: Collective Bargaining Requisites
1. Employer-employee relationship
2. Majority status of the SEBA
3. The bargaining unit being sought to be
represented by the SEBA should be validly
constituted and established in accordance with
law.
4. Lawful written demand to bargain and a clear
statement of CBA proposals by one party to
negotiate an agreement and the equivalent
counter-proposals by the other party 
In order to exercise the right to collective bargaining,
employer-employee relationship must first be
established.
There are jurisdictional preconditions on the duty to
bargain such as the (1) possession of the status of
majority representation of the employees’ representative
in accordance with any of the means of selection or
designation provided for by the Labor Code; also (2)
There must be actual proof of majority representation;
and lastly there must be lawful written demand to
bargain as provided in Art. 261(a) and a clear statement
of CBA proposals by one party to negotiate an
agreement and the equivalent counter-proposals by the
other party 
Only the labor organization designated or selected by the
majority of the employees in an appropriate collective
bargaining unit is the exclusive representative of the
employees in such unit for the purpose of collective
bargaining. [Phil. Diamond Hotel and Resort Inc v.
Manila Diamond Hotel and Employees Union, G.R. No.
158075 (2006); Art. 267]
Slide 11: When Duty to Bargain Exists/Begins
There are 2 possible situations when the duty begins.
There can be a situation where there is no CBA at all and
there can also be a situation wherein there is an existing
CBA
Slide 12: Duty to Bargain Collectively When a CBA
Exists
-When there is a CBA, neither party shall terminate nor
modify such agreement during its lifetime. However,
either party can serve a written notice to terminate or
modify the agreement at least 60-days prior to the
expiration date. It shall be the duty of both parties to
keep the status quo and to continue in full force and
effect the terms and conditions of the existing agreement
during the 60-day period (freedom period) or until a new
agreement is reached by the parties.
So in this situation the general rule is that the duty to
bargain collectively shall also mean that neither party
shall terminate nor modify such agreement during its
lifetime. [Art. 264]. The only time the parties are
allowed to terminate or modify the agreement is within
the period of at least 60 days prior to its expiration date
by serving a notice to that effect. The last 60-day period
of the five year lifetime of the CBA immediately
preceding its expiration is called the freedom period.
It is denominated as such because it is the only time
when the law allows the parties to freely serve a notice
to terminate alter or modify the existing CBA. It also is
the time when the majority status of the SEBA may be
challenged by another union by filing the appropriate
petition for certification election (PCR).
The automatic renewal clause is deemed incorporated in
all CBAs. All the terms and conditions of the CBA are
deemed automatically renewed. The law does not
provide for any exception or qualification on which
economic provisions of the existing CBA are to retain
their continuing force and effect. Therefore, the
automatic renewal of the CBAs provisions must be
understood as encompassing all the terms and conditions
thereof.
An employer cannot discontinue the grant of the benefits
embodied in the CBA which just expired as it is duty
bound to maintain the status quo by continuing to give
5
the same benefits until a renewed CBA is reached by the
parties. On the part of the union, it has to observe and
continue to abide by its undertakings and commitments
under the expired CBA until the same is renewed.
Otherwise, there would be a gap during which no
agreement would govern from the time the old
agreement expired to the time a new agreement is
concluded by the parties.
Substitutionary Doctrine
Even during the effectivity of a collective bargaining
agreement executed between employer and employees
[through] their agent, the employees can change said
agent but the contract continues to bind them up to its
expiration date. They may bargain, however, for the
shortening of said expiration date. [Elisco-Elirol Labor
Union v. Noriel, G.R. No. L-41955 (1977)].
When employees (as in the case of Picop Resources v
Deqilla [2011]) were fired because they allegedly
committed acts of disloyalty to the union by signing an
authorization letter to file a PCE by another union prior
to the 60-day freedom period which was outside the 60-
day freedom, the petition filed for certification election
was actually within the freedom period. The termination
was illegal because the mere signing an authorization in
support of a new union is not sufficient ground to
terminate the employment of respondents. Nothing in the
records showed that the respondents failed to maintain
their membership in good standing in the current union.
They did not resign or withdraw their membership from
the union and they continued to pay their union dues and
never joined the new union. The filing of the PCE was
well within the 60 day period. What is prohibited is the
filing of the PCE outside the 60 day freedom period.
Slide 13: Duty to Bargain Collectively Absent a CBA
Absent a CBA, the general rule is, the bargaining
procedure shall be governed by [the parties’] agreement
or other voluntary arrangement providing for a more
expeditious manner of collective bargaining [Art. 262].
This is because it is the policy of the state to promote
and emphasize the primacy of free collective bargaining
and negotiations [Art. 218-A(a)]
The law gives utmost premium and extends due respect
to the voluntary arrangement between the parties on how
they will discharge their respective duties to bargain
collectively before resort to the procedure laid down in
the Labor Code.
It is only when there is no such voluntary agreement that
the procedure laid down in Article 261 of the Labor
Code should be followed. The mandatory steps can be
seen on the next slide.
Slide 14: Collective Bargaining Process
Mandatory Steps:
duty to bargain collectively making it liable for ULP
(General Milling case)
It can be deemed ULP based on circumstantial evidence.
The determination of such bad faith is on a case to case
basis. Anyway, a deeper discussion on bad faith and
good faith will be discussed in the latter part of this
report.

1. Preliminary process The Negotiation involves the process of meeting, not

2. Negotiation later than 10 calendar days from the date of request for
3. Signing and Execution conference, of the representatives of the employer and
4. Publication the SEBA, for the purpose of discussing and adjusting
5. Ratification their differences, if any, with the end in view of
6. Joint Administration conducting an agreement on the terms and conditions of
7. Interpretation and Application their employment relationship
Once a Labor Union or organization is certified as
During negotiations, it is but natural for both
SEBA, it must engage in collective bargaining with the
management and labor to adopt positions or make
employer since it is the very reason of the right to self-
demands and offer proposals and counter-proposals.
organization which is to enable workers to bargain in a
However, nothing is considered final until the parties
collective fashion with their employer. And under the
have reached an agreement. [Samahang Manggagawa sa
certification year bar rule, it has one year from being
Top Form v. NLRC, G.R. No. 113856 (1998)]
certified as SEBA to initiate and comment the CBA
negotiation with the employer.
Upon the receipt of the union’s request for audited
financial statements, including the balance sheet and the
As to the collective bargaining process these are the
profit and loss statement, the employer must provide
mandatory steps as provided in Art 261 and 262 absent
such within 30 calendar days.
an existing private agreement.
The Minutes of Negotiation only reflects the proceedings
During the preliminary process the first step in the
and discussions undertaken in the process of bargaining
bargaining process involves the act of a party desiring to
for worker benefits in the same way that the minutes of
negotiate an agreement and serving a written notice upon
court proceedings show what transpired therein.
the other party with a statement of its proposals.
Where a proposal raised by a contracting party
The other party must make a reply not later than 10
eventually does not find print in the CBA, it is not a part
calendar days from the receipt of such notice. Although,
thereof and the proponent has no claim whatsoever to its
it must be noted that in almost all cases, the negotiation
implementation.
process is initiated by the SEBA. Article 261 does not
foreclose the right of the employer to initiate it. The
provision uses the word party which may refer either to There can be a suspension of the Bargaining
the employer or the SEBA. negotiations. In order to allow the employer to validly
suspend the bargaining process there must be a valid
petition for certification election raising a legitimate
Failure to Reply is Indicia of Bad Faith. Although the
representation issue.
period to reply is merely procedural, and non-
compliance cannot be automatically deemed to be an act
But, the mere filing of a petition for certification election
of unfair labor practice. [National Union of Restaurant
does not ipso facto justify the suspension of negotiation
Workers v. CIR, G.R. No. L-20044 (1964)]
by the employer as discussed in the case of Colegio de
San Juan de Letran which will be discussed later.
[The employer’s] refusal to make a counter- proposal is
an indication of its bad faith, where the employer did not
Negotiation may be conducted with the intervention of
even bother to submit an answer to the bargaining
the government through the conciliators- mediators of
proposals of the union, there is a clear evasion of the
the NCMB, in case any dispute arising therefrom is not

6
settled by the parties among themselves. The Board shall
have the power to issue subpoenas requiring the
attendance of the parties to such meetings. It shall be the
duty of the parties to participate fully and promptly in
the conciliation meetings that the Board may call; (d)
During the conciliation proceedings in the Board, the
parties are prohibited from doing any act which may
disrupt or impede the early settlement of the disputes;
and (e) The Board shall exert all efforts to settle disputes
amicably and encourage the parties to submit their case
to a voluntary arbitrator.
The Signing and Execution: this involves the signing and
execution of a written document, ordinarily denominated
as CBA or simply as agreement by the management and
the SEBA’s negotiating panels after a series of
negotiations. The document embodies all the agreements
reached by them on each and every issue raised and
resolved during the negotiation process.
After the signing of the CBA by the panel
representatives of the management and the SEBA and
the notarization of such agreement, it CANNOT yet be
considered as having taken effect since there are still
certain mandatory legal processes that need to be
complied with, such as the publication, ratification and
registration processes.
The publication of the newly concluded CBA must be
made in at least 2 conspicuous places in the workplace,
at least 5 days prior to the ratification
The ratification must be made by at least the majority of
the employees covered by and included in the entire
bargaining unit (not just of the SEBA)
It must then be submitted directly to the BLR or the
DOLE Regional Office to be registered with within
thirty (30) days from the execution of the Collective
Bargaining Agreement. The submission must include
verified proof of its posting in two conspicuous places in
the place of work and ratification by the majority of all
the workers in the bargaining unit.
The Bureau or Regional Offices shall act upon the
application for registration of such CBA within five (5)
calendar days from receipt thereof. And the Regional
Offices shall furnish the Bureau with a copy of the CBA
within five (5) days from its submission.
A registration fee of not less than one thousand pesos
(P1,000.00) or in any other amount as may be deemed
appropriate and necessary by the Secretary of Labor and
Employment for the effective and efficient
7
administration of the Voluntary Arbitration Program
must be paid. Any amount collected under this provision
shall accrue to the Special Voluntary Arbitration Fund.
The Bureau shall also maintain a file and shall undertake
or assist in the publication of all final decisions, orders
and awards of the Secretary of Labor and Employment,
Regional Directors and the Commission. (As amended
by Section 15, Republic Act No. 6715, March 21, 1989)
Slide 15: Effect of Refusal to Bargain
-The CBA proposed by the SEBA may be adopted as the
new CBA if the employer unjustifiably and in bad faith
refused to counter-propose and negotiate its terms and
conditions.
-Adoption of the proposed CBA by the SEBA may be
imposed by the Supreme Court on the employer because
of its refusal to counter-propose to the SEBA’s proposal
(General Milling Corp v CA, GR 146728 [2004])
-Article 259(g) [248(g], LC provides that a violation of
the duty to bargain collectively as prescribed by this
Code constitutes unfair labor practice.
Where an employer refused to bargain without valid and
sufficient cause, the Secretary of Labor may, in the
exercise of his powers under article 263(i) of the Labor
Code to decide and resolve labor disputes, properly grant
wage increases. (San Pedro Hospital of Digos, Inc v Sec
of Labor, 263 SCRA 587 [2000].)
A refusal to contract is in substance a refusal to bargain
about matters which are mandatory subjects of collective
bargaining unless the agreement covers a matter which is
not a mandatory subject. If a disputed clause was not the
sole cause of the failure to agree or that agreement was
not reached with respect to other disputed clauses. Such
refusal will not be deemed as an unfair labor practice.
On the part of the SEBA, Paragraph c of Article 260
[249] provides that it is ULP for a SEBA to violate the
duty to bargain collectively with the employer provided
it is the representative of the employees. This is the
counterpart provision of Art 259 G in regard to the
violation by the employer to its duty to bargain
collectively. The purpose of this law in imposing a duty
on the part of the SEBA to bargain collectively is to
ensure that it will negotiate with the management in
good faith in order for them to conclude a mutually
beneficial agreement on the terms and conditions of their
employment relationship.
Before a union may be held liable for ULP, (1) the union
must be a duly certified as SEBA; (2) and it commits
either a (1) violation of the duty to bargain collectively;
or (2) it refuses to bargain collectively with the
employer.
*a non-SEBA cannot commit ULP. Under paragraph c
of Article 260, a non-SEBA has no duty to collectively
bargain with the employer; only a SEBA has that duty.
Slide 16: Case: Kiok Loy vs NLRC
A classic case of negotiating in bad faith consisting of
the employer’s refusal to bargain with the SEBA by
ignoring all notices for negotiations and requests for
counter proposals made to the former by the latter. Such
refusal to send its counter-proposals to the SEBA’s
proposals and to bargain on the economic terms of the
CBA constitutes ULP under Art 259(g) [248(g)], LC.
In this case the company's refusal to make any
counterproposal to the union's proposed CBA was
declared as an indication of bad faith. Where the
employer did not even bother to submit an answer to the
bargaining proposals of the union, there is a clear
evasion of the duty to bargain collectively.
Slide 17: Case: Divine Word Univ. vs NLRC
The university’s refusal to bargain the employer is guilty
of violating the duty to bargain collectively in good
faith. Hence, the union's draft CBA proposal may
unilaterally be imposed upon the employer as the
collective bargaining agreement to govern the
relationship.
-In this case, after its affiliation with the ALU, the union,
through the ALU Director for Operations, requested an
“initial conference” for the purpose of collective
bargaining. A conference was held which led to the
conclusion of an agreement between the University and
DWUEU-ALU. However, it turned out that an hour
before the agreement was concluded, the University had
filed a petition for certification election.
-On the other hand, consonant with the agreement, the
union (DWUEU-ALU) submitted its collective
bargaining proposals. These were ignored by the
University.
The university's contention that the union's proposals
may not be unilaterally imposed on it on the ground that
a collective bargaining agreement is a contract wherein
8
the consent of both parties is indispensable is devoid of
merit.
The decision in Kiok Loy v NLRC is applicable in the
instant case considering that the facts therein have also
been indubitably established in this case. These factors
are: a) the union is the Julie certified bargaining agent;
b) it made a definite request to bargain and submitted its
collective bargaining proposals, and c) the University
made no counterproposal whatsoever.
The University may not validly assert that its consent
should be a primordial consideration in the bargaining
process. By its act, no less than its inaction which
bespeak it's in sincerity, it has forfeited whatever rights it
could have asserted as an employer.
Slide 18: Case: Collegio de San Juan de Letran vs
AEFL
Petitioner school was declared to have violated Art 261
[250] and to have acted in bad faith because of its failure
to make a timely reply to the proposals presented by the
union. More than a month had elapsed after the
proposals were submitted by the union and yet petitioner
still had not made any counter-proposals. This inaction
on the part of petitioner prompted the union to file its
second notice of strike. Petitioner could only offer a
feeble explanation that its Board of Trustees had not yet
convened to discuss the matter as its excuse for failing to
file its reply. Its refusal to make a counter-proposal
shows a lack of sincere desire to negotiate rendering it
guilty of ULP.
In this case the union initiated a renegotiation of the
union’s Collective Bargaining Agreement with petitioner
Colegio de San Juan de Letran for the last two (2) years
of the CBA's five (5) year lifetime from 1989-1994. The
union claimed that the CBA was already prepared for
signing by the parties. The parties submitted the disputed
CBA to a referendum by the union members, who
eventually rejected the said CBA.
Petitioner Colegio de San Juan de Letran accused the
union officers of bargaining in bad faith before the
NLRC. So the parties agreed to disregard the unsigned
CBA and to start negotiation on a new five-year CBA
starting 1994-1999. Due to petitioner's inaction, the
union filed a notice of strike. Petitioner Colegio de San
Juan de Letran stopped the negotiations after it
purportedly received information that a new group of
employees had filed a petition for certification election.
The issue in this case is whether petitioner is guilty of
unfair labor practice by refusing to bargain with the
union when it unilaterally suspended the ongoing
negotiations for a new Collective Bargaining Agreement
(CBA) upon mere information that a petition for
certification has been filed by another legitimate labor
organization?
The Court ruled in the affirmative. It held that and
employers utter lack of interest in bargaining with the
union is a clear violation of Article 261 formerly Art 250
of the Labor Code governing the procedure in collective
bargaining. A company's refusal to make counter
proposal to the union's proposed CBA is an indication of
its bad faith. And an employer who sternly refused to
bargain in good faith with the union is guilty of unfair
labor practice.
As to the contention that petitioner received information
that a new group of employees had filed a petition for
certification election which prompted it to suspend the
proceeding, In order to allow the employer to validly
suspend the bargaining process there must be a valid
petition for certification election raising a legitimate
representation issue. Hence, the mere filing of a petition
for certification election does not ipso facto justify the
suspension of negotiation by the employer. The petition
must first comply with the provisions of the Labor Code
and its Implementing Rules. Foremost is that a petition
for certification election must be filed during the sixty-
day freedom period. The "Contract Bar Rule" under
Section 3, Rule XI, Book V, of the Omnibus Rules
Implementing the Labor Code, provides that: " .… If a
collective bargaining agreement has been duly registered
in accordance with Article 231 of the Code, a petition for
certification election or a motion for intervention can
only be entertained within sixty (60) days prior to the
expiry date of such agreement." The rule is based on
Article 232,8 in relation to Articles 253, 253-A and 256
of the Labor Code. No petition for certification election
for any representation issue may be filed after the lapse
of the sixty-day freedom period. The old CBA is
extended until a new one is signed. The rule is that
despite the lapse of the formal effectivity of the CBA the
law still considers the same as continuing in force and
effect until a new CBA shall have been validly
executed.9 Hence, the contract bar rule still applies.1The
purpose is to ensure stability in the relationship of the
workers and the company by preventing frequent
modifications of any CBA earlier entered into by them in
good faith and for the stipulated original period.
In the case at bar, the lifetime of the previous CBA was
from 1989-1994. The petition for certification election
9
by ACEC, allegedly a legitimate labor organization, was
filed with the Department of Labor and Employment
(DOLE) outside the sixty-day freedom period. Hence,
the filing thereof was barred by the existence of a valid
and existing collective bargaining agreement.
-Consequently, there is no legitimate representation issue
and, as such, the filing of the petition for certification
election did not constitute a bar to the ongoing
negotiation.
Slide 19: When Duty to Bargain Ceases
-The duty to bargain extends to discussing proposals for
adjusting any grievances or questions arising under such
agreement, or executing a contract incorporating such
agreements if requested by either party.
-The duty to bargain collectively shall also mean that
neither party shall terminate or modify such agreement,
unless it has served a written notice upon the other party
of the proposed termination or modification at least 60-
days prior to the expiration date.
Once an agreement has already been reached or an old
one renewed the duty to bargain collectively does NOT
necessarily cease. Because the duty to collectively
bargain shall also mean that neither party shall terminate
or modify such agreement, unless it has served a written
notice upon the other party of the proposed termination
or modification at least 60-days prior to the expiration
date.
So it does NOT really end. Collective bargaining is
continuous.
There can still be amendments to the CBA, and such
amendments are done in the exercise of the right to
collectively bargain. The proposals for such are
submitted during the freedom period but the status quo
or the provisions of the CBA must still be maintained
and observed even during the CBA.
The grievance procedure is part of the continuous
process of collective bargaining. It is intended to
promote a friendly dialogue between labor and
management as a means of maintaining industrial peace .
Reference:
Abad, Antonio Jr., Abad, Anna Maria. (2015).
COMPENDIUM ON LABOR LAW (5th ed). Manila,
Philippines: Rex Printing Company, Inc.
Azucena, Cesario Alvero Jr. (2007). THE LABOR
CODE WITH COMMENTS AND CASES (Vol. II).
Quezon City: Rex Printing Company, Inc.

Amante, M. S. (2006). COLLECTIVE BARGAINING

IN THE PHILIPPINES (Rep.). Subregional Office for
East Asia United Nations Building Rajdamnern Nok
Avenue P.O. Box 2-349 Rajdamnern Bangkok,
Thailand: © ILO- Japan Multi-Lateral Project.

Chan, P. G. (2019). BAR REVIEWER ON LABOR

LAW (4th ed., Revised Edition). Pasig City, Metro
Manila, Philippines: Chan Robles Publishing Company.

Salao, Ernesto C., LlB. (2020). THE LABOR CODE OF

THE PHILIPPINES Presidential Decree No 442 (as
amended and numbered per DOLE Dept Advisory No. 1
Seriies of 2015): and Omnibus Implementing Rules.
Quezon City, Metropolitan Manila, Philippines: Rex
Printing Company, Inc.

*the rest of the topics and cases under Collective

Bargaining (Letters E and F in the syllabus) are under
the report of Mr Tanhueco

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