INTRODUCTION
LABOR LEGISLATION
LABOR RELATIONS
CLASSIFICATION OF LABOR
LEGISLATION
1. Labor Standard Law, and
2. Labor Relations Law
Labor Standard Laws are the minimum
requirements prescribed by existing laws,
rules and regulations relating to wages,
hours of work, cost-of-living allowance, and
other monetary welfare benefits, including
occupational safety, and health standards.”
(Maternity Children's Hospital vs. Secretary
of Labor, GR No. 78909, June 30, 1989.)
RIGHTS OF WORKERS UNDER
ARTICLE 3 OF THE LABOR CODE
1. Self-organization;
2. Collective bargaining;
3. Security of tenure; and
4. Just and humane
conditions of work
Labor Legislation consists of statutes,
regulations and jurisprudence governing the
relations between capital and labor, by
providing for employment standards and a
legal framework for negotiating, adjusting
and administering those standards and other
incidents of employment.
FLOW OF INTERACTIONS BETWEEN
EMPLOYER-EMPLOYEE
a. The employee organized themselves into a union c. Duty to bargain collectively.
Labor relations Law refer to the interactions or association.
between employer and employees or their
representatives and the mechanism by which b. The union/association registered their d. Execution of collective
the employment standards are negotiated, organization. bargaining agreement.
adjusted and enforced. They acquire certain rights which can be enforced.
e. Mutual observance of the terms
The employer is prohibited by law to interfere with
Labor relations law defines the status, rights and conditions of the CBA.
the workers decision to organized or form a union
and duties, and the institutional mechanisms, because if they do, it will be considered as unfair
that govern the individual and collective labor practice of employer hence, they can be
interactions of employers, employees or their sanctioned under the law.
representatives.
POLICY OF THE
STATE
Article 218 (211) A. It is the policy of the
State:
(a) To promote and emphasize the primacy of
free collective bargaining and negotiations,
including voluntary arbitration, mediation and
(e) To provide an adequate administrative machinery
conciliation, as modes of settling labor or
industrial disputes; for the expeditious settlement of labor or industrial
disputes;
(b) To promote free trade unionism as an
instrument for the enhancement of
democracy and the promotion of social
justice and development;
(c) To foster the free and voluntary
organization of a strong and united labor
movement;
(d) To promote the enlightenment of workers
concerning their rights and obligations as
union members and as employees;
MODES OF SETTLING DISPUTES
POLICY OF THE
STATE

(f) To ensure a stable but dynamic and just industrial

VOLUNTARY ARBITRATION
refers to the mode of
settling labor-management
disputes by which the
parties select a competent,
trained and impartial
person who shall decide on
the merits of the case and
whose decision is final,
executory and binding.
RA 9285 or the ALTERNATIVE
DISPUTE RESOLUTION ACT of
2004 defines "Mediation" as a
voluntary process in which a
mediator, selected by the
disputing parties, facilitates
communication and
negotiation, and assist the
parties in reaching a voluntary
agreement regarding a into through collective bargaining, no court or
dispute.
CONCILIATION - shall
refer to a process
whereby a conciliator
designated by the
Authority calls together
the parties involved in a
dispute, encourages
them to discuss their
differences, and assists
them in developing their
own proposed solutions
to their disputes.
(Republic Act No. 6939)
peace; and
(g) To ensure the participation of workers in decision
and policy-making processes affecting their rights,
duties and welfare.
B. To encourage a truly democratic method of
regulating the relations between the employers and
employees by means of agreements freely entered
administrative agency or official shall have the
power to set or fix wages, rates of pay, hours of
work or other terms and conditions of employment,
except as otherwise provided under this Code.
(Article 218, PD 442)

Petitioner's CRR involves matters that affect the general welfare of

In BONPACK CORPORATION, PETITIONER, VS. NAGKAKAISANG MANGGAGAWA
SA BONPACK-SOLIDARITY OF UNIONS IN THE PHILIPPINES FOR
EMPOWERMENT AND REFORMS (NMB-SUPER), REPRESENTED BY ITS UNION
PRESIDENT, ZOSIMA** BUCIO, RESPONDENT, G.R. No. 230041. December 05,
2022, the Court held:
It is settled that the exercise by an employer of its management prerogative is not
absolute and is subject to limitations imposed by "law, collective bargaining
agreement, and general principles of fair play and justice. (Lagamayo v. Cullinan Group,
Inc., G.R. No. 227718, November 11, 2021 and Hongkong Bank Independent Labor Union v. Hongkong and Shanghai
Banking Corp. Limited, 826 Phil. 816, 838 (2018).
respondent's members, as well as the parties' labor-management relationship,
and any changes to the same necessarily affect them. Clearly, petitioner is
duty-bound under the CBA to discuss with respondent any revision and/or
modification in the CRR.
Moreover, the obligation imposed by the parties upon themselves is mutual.
The reason behind this policy requiring a discussion between labor and
management is obvious in the CBA itself – to promote and maintain a
harmonious labor-management relationship. The objective of this shared
obligation may be achieved through prior and bilateral consultation of the
parties with each other, and certainly not through a one-sided presentation of
the revisions or modifications already arrived at by only one party.

FREE LABOR
BARGAINING ORGANIZATION
Free bargaining means employer and union deal with Labor organization" means any union or association
each other to discuss issues affecting them. The parties of employees which exists in whole or in part for the
purpose of collective bargaining or of dealing with
have freedom to discuss and negotiate. employers concerning terms and conditions of
employment. (Art 219 (g)

LABOR DEMOCRACY The right to self-organization is not limited to

unionism. Workers may also form or join an
association for mutual aid and protection and for
Labor democracy means Management and union negotiate and other legitimate purposes. (SAMAHAN NG
deal with each other without the intervention of third parties. MANGGAGAWA SA HANJIN SHIPYARD rep. by its
President, ALFIE ALIPIO, vs. BUREAU OF LABOR
RELATIONS, HANJIN HEAVY INDUSTRIES AND
CONSTRUCTION CO., LTD. (HHIC-PIDL.), G.R. No.
211145, October 14, 2015)
 OTHER
ORGANIZATIONS Independent union
It refers to any labor organization operating at the enterprise level
whose legal personality is derived through an independent action
Workers organization for registration with the Bureau of Labor Relations (BLR) of the
Any association of workers organized for the Department of Labor and Employment (DOLE) prescribed under
mutual aid and protection of its members or Article 234.
for any legitimate purpose other than for
collective bargaining. It may be affiliated with a federation, national or industry union in
which case it may also be referred to as an affiliate.

RIGHTS OF LABOR ORGANIZATION

Federation
Any labor organization with at least 10
locals/chapters or affiliates each of which
must be a duly certified or recognized as the
sole and exclusive collective bargaining
agent of the employees of an appropriate
bargaining unit.
A labor organization has two broad rights:
(1) to bargain collectively
(2) to deal with the employer concerning terms
and conditions of employment
TO DEAL WITH THE EMPLOYER CONCERNING
TO BARGAIN COLLECTIVELY
TERMS AND CONDITIONS OF EMLOYMENT
To bargain collectively is a right
Dealing with the employer, on the other hand, is
given to a union once it registers
itself with the DOLE and becomes
a generic description of interaction between
employer and employees concerning
the sole and exclusive bargaining
grievances, wages, work hours and other terms
agent.
and conditions of employment, even if the
employees' group is not registered with the
DOLE. (Azucena, The Labor Code with Comments and
Cases, Volume 2, p. 127 (1996); Pascual, Labor Relations
Law, pp. 35-36.)

PURPOSE OF ORGANIZING A LABOR REGISTRATION REQUIREMENTS

ORGANIZATION
ART. 240. [234] Requirements of Registration.
A federation, national union or industry or trade
A labor union is an organization formed by
union center or an independent union shall
workers in order to negotiate for better
acquire legal personality and shall be entitled to
workers' rights, including better pay, safer the rights and privileges granted by law to
working conditions, and better benefits. A labor legitimate labor organizations upon issuance of
union chooses representatives to negotiate on the certificate of registration based on the
its behalf with the employer. following requirements:
(a) Fifty pesos (P50.00) registration fee;
(b) The names of its officers, their addresses, the
To secure a fair and just wages principal address of the labor organization, the
and good working conditions for the minutes of the organizational meetings and the list
of the workers who participated in such meetings;
laborers; and for the protection of
labor against the unjust exactions of
capital
(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.
ADDITIONAL REQUIREMENT FOR
FEDERATIONS OR NATIONAL UNIONS
ART. 244. [237] Additional Requirements for
Federations or National Unions. – Subject to Article
238,203 if the applicant for registration is a
federation or a national union, it shall, in addition to
the requirements of the preceding Articles, submit
the following:
(a) Proof of the affiliation of at least ten (10) locals or
chapters, each of which must be a duly recognized
collective bargaining agent in the establishment or
industry in which it operates, supporting the
registration of such applicant federation or national
union; and
(b) The names and addresses of
the companies where the locals or
chapters operate and the list of all
the members in each company
involved
CHARTERING AND CREATION OF LOCAL CHAPTER
ART. 241. [234-A] Chartering and Creation of a Local
Chapter.
A duly registered federation or national union may
directly create a local chapter by issuing a charter
certificate indicating the establishment of the local
chapter. The chapter shall acquire legal personality
only for purposes of filing a petition for certification
election from the date it was issued a charter
certificate.
The chapter shall be entitled to all other rights and
privileges of a legitimate labor organization only
upon the submission of the following documents in
addition to its charter certificate:
(a) The names of the chapter's officers, their
addresses, and the principal office of the
chapter; and
(b) The chapter's constitution and by-laws:
Provided, That where the chapter's
constitution and by-laws are the same as that
of the federation or the national union, this
fact shall be indicated accordingly.
The additional supporting requirements shall
be certified under oath by the secretary or
treasurer of the chapter and attested by its
president.

In Anglo-KMU v. Samahan Ng Mga Manggagawang Nagkakaisa

Sa Manila Bar Spinning Mills At J.P. Coats, enlightens
“A local labor union is a separate and distinct unit primarily
designed to secure and maintain an equality of bargaining
power between the employer and their employee-members. A
local union does not owe its existence to the federation with
which it is affiliated. It is a separate and distinct voluntary
association owing its creation to the will of its members.
The mere act of affiliation does not divest the local union of its
own personality, neither does it give the mother federation the
license to act independently of the local union. It only gives rise
to a contract of agency where the former acts in representation
of the latter.

GROUNDS FOR THE CANCELLATION OF UNION
REGISTRATION
ART. 247. [239] Grounds for Cancellation of
Union Registration. – 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 statements or fraud
in connection with the election of officers,
minutes of the election of officers, and the list of
voters;
(c) Voluntary dissolution by the members.
ART. 248. [239-A] Voluntary Cancellation of
Registration. – The registration of a
legitimate labor organization may be
cancelled by the organization itself:
Provided, That at least two-thirds of its
general membership votes, in a meeting
duly called for that purpose to dissolve the
organization: Provided, further, That an
application to cancel registration is
thereafter submitted by the board of the
organization, attested to by the president
thereof.
ART. 246. [238-A] Effect of a Petition for Cancellation
of Registration. – A petition for cancellation of union
registration shall not suspend the proceedings for
certification election nor shall it prevent the filing of
a petition for certification election.
CERTIFICATION ELECTION The significance of an employee’s right to
vote in a certification election cannot thus
A certification election is the process of be overemphasized. For he has considerable
determining the sole and exclusive interest in the determination of who shall
bargaining agent of the employees in an represent him in negotiating the terms and
appropriate bargaining unit for purposes conditions of his employment. NATIONAL UNION OF
of collective bargaining. (Honda Phils, Inc. v. WORKERS IN HOTELS, RESTAURANTS AND ALLIED INDUSTRIES- MANILA
PAVILION HOTEL CHAPTER, vs. SECRETARY OF LABOR AND EMPLOYMENT, et
Samahan ng Malayang Manggagawa sa Honda, G.R. No. al, G.R. No. 181531, July 31, 2009
145561, June 15, 2005, 460 SCRA 186.)
 A petition for certification election may be filed at any time, in the absence of a
collective bargaining agreement. Otherwise put, the rule prohibits the filing of a
petition for certification election in the following cases:
(1) during the existence of a collective bargaining agreement except within the
freedom period;
(2) within one (1) year from the date of issuance of declaration of a final certification
election result; or
(3) during the existence of a bargaining deadlock to which an incumbent or certified
bargaining agent is a party and which had been submitted to conciliation or
arbitration or had become the subject of a valid notice of strike or lockout.
WHO MAY FILE A PETITION FOR
CERTIFICATION ELECTION
1. A legitimate labor organization may file
a petition for certification election to be
certified as the exclusive bargaining
agent.
2. The employer may also file a petition for
certification election and thereafter be considered
as a bystander or a non-party.
THE EMPLOYER MAY FILE THE PETITION FOR
CERTIFICATION ELECTION
An employer may file petition when requested to
bargain collectively, an employer may petition the
Bureau of Labor Relations (“Bureau”) for an
election. If there is no existing certified collective
bargaining agreement in the unit, the Bureau shall,
after hearing, order a certification election. (Article
270, Ibid.)
DOUBLE MAJORITY RULE Under the so-called “double majority rule,”
for there to be a valid certification election,
majority of the bargaining unit must have
voted AND the winning union must have
garnered majority of the valid votes cast.
(National Union of Workers in Hotels v.
DOLE Secretary, supra.)
DEADLOCK BAR RULE
The Deadlock Bar Rule simply provides that a petition
for certification election can only be entertained if
there is no pending bargaining deadlock submitted to
conciliation or arbitration or had become the subject of
a valid notice of strike or lockout. The principal
purpose is to ensure stability in the relationship of the
workers and the management.
-The law demands that the petition for certification
election should fail in the presence of a then pending
bargaining deadlock.
-refers to the existence of CBA. Where there is an
existing CBA which has been duly registered, a petition
for certification election may be filed, as already
explained, only within the freedom/period which is the
last 60 days of the fifth year of the CBA.
BYSTANDER RULE
The “Bystander Rule” is already well
entrenched in this jurisdiction. It has been
consistently held in a number of cases that a
certification election is the sole concern of the
workers, except when the employer itself has
to file the petition pursuant to Article 259 of the
Labor Code, as amended, but even after such
filing its role in the certification process ceases
and becomes merely a bystander. The
employer clearly lacks the personality to
dispute the election and has no right to
interfere at all therein.
PETITION FOR CERTIFICATION ELECTION
1. Unorganized establishment
2. Organized establishment

CERTIFICATION ELECTION IN UNORGANIZED
ESTABLSIHMENTS
a. Petitions in Unorganized Establishments
In any establishment where there is no certified
bargaining agent, a certification election shall
automatically be conducted by the Med-Arbiter upon
the filing of a petition by any legitimate labor
organization, including a national union or federation
which has already issued a charter certificate to its
local/chapter participating in the certification
election or a local/chapter which has been issued a
charter certificate by the national union or
federation. (Article 269, P.D. 442, Labor Code)
CERTIFICATION ELECTION IN ORGANIZED
ESTABLSIHMENTS
b. Representation issues in organized establishment
a) Verified petition with 25% written consent.
In organized establishments, when a verified petition
questioning the majority status of the incumbent bargaining
agent is filed by any legitimate labor organization including a
If petition filed by a national
national union or federation which has already issued a charter
union/federation. In cases where
certificate to its local chapter participating in the certification
In cases where the petition was filed by a the petition was filed by a
election or a local chapter which has been issued a charter
national union or federation, it shall not be national union or federation, it
certificate by the national union or federation before the
required to disclose the names of the local shall not be required to disclose
Department of Labor and Employment within the sixty (60)-day
chapter’s officers and members. (Ibid.) the names of the local chapter’s
period before the expiration of the collective bargaining
officers and members. (Ibid.)
agreement, the Med-Arbiter shall automatically order an election
by secret ballot when the verified petition is supported by the
written consent of at least twenty-five percent (25%) of all the
employees in the bargaining unit to ascertain the will of the
employees in the appropriate bargaining unit. (Article 268, Ibid.)

FREEDOM PERIOD

The last 60 days in a collective

bargaining agreement.
STATUS QUO
At the expiration of the freedom period, the employer The rival union representation can be
shall continue to recognize the majority status of the entertained during the existence of a
incumbent bargaining agent where no petition for valid CBA. It is during this particular
certification election is filed. (Ibid.) period when the majority status of the
incumbent bargaining agent can be
challenged. (Tanduay Distillery Labor
Union vs. NLRC, G.R. No. 75037)

GENERAL GROUPINGS OF THE RIGHTS OF THE UNION MEMBERS

GENERAL GROUPINGS OF THE RIGHTS OF THE UNION
MEMBERS

3. Rights Over Money Matters - the right of Any violation of the

the members: 4. Right to Information - above rights and
a. against imposition of excessive fees; the right to be informed conditions of
b. right against unauthorized collection of about: membership shall be a
contributions or unauthorized a. the organization’s ground for cancellation of
disbursements; union registration or
constitution and by-
c. to require adequate records of income expulsion of an officer
laws,
and expenses; from office, whichever is
d. to access financial records; b. the collective
appropriate. At least 30%
e. to vote on officers compensation; bargaining agreement, of all the members of the
1. Political right - the right to vote and be voted f. to vote on special assessment; and labor laws. union or any member or
for, subject to lawful provisions on qualifications g. to be deducted a special assessment members specifically
and disqualifications. only with the member’s written concerned may report
authorization. such violation to the
2. Deliberative and Decision-Making Right - the
Bureau.
right to participate in deliberations on major
policy questions and decide them by secret ballot.
 PERSONS WHO ARE PROHIBITED FROM BECOMING CRIME INVOLVING MORAL TURPITUDE
MEMBERS/OFFICERS OF A LABOR ORGANIZATION

The following persons are prohibited from becoming members/officers of a Labor A crime involving moral turpitude (CIMT) is a criminal or offensive act that can be
organization defined as vile and/or insulting to one's moral compass. A crime of moral
turpitude is a crime that disrespects and antagonizes societal norms.
1. Subversives or those engaged in subversive activities [Art.261(e)]
2. Persons who have been convicted of a crime involving moral turpitude shall not be Moral turpitude, includes everything which is done contrary to justice, honesty,
eligible for election as union officer or for appointment to any position in the union. modesty or good morals. (Bovier’s Law Dictionary)
[Art. 261 (f)]
The following are crimes adjudged to involved moral
turpitude.
1. Abduction with consent
2. Bigamy
3. Concubinage
4. Smuggling
5. Rape
6. Estafa through falsification of document
7. Etc.

LIMITATION CHECK-OFF

CHECK-OFF - a method of deducting from an REQUIREMENTS WITH REGARD TO

employee’s pay at prescribed period, the amounts CHECK-OFFS (Art. 250 [o]):
due to the union for fees, fines or assessments. - NO special assessment,
a. The labor org. cannot compel employees to attorney’s fees, registration fees or
become members of their labor organization if any other extraordinary fees may
they are already be checked off from any amount
member of rival union. due an employee WITHOUT an
individual written authorization duly
b. members of religious organization whose signed by the employee.
religion forbade membership in labor
organization could not be compelled into union The authorization should
membership. specifically state the:
a. amount
b. purpose and the beneficiary of
the deduction.
NATURE AND PURPOSE OF CHECK-OFF:
1. To facilitate the collection of dues necessary for
the union’s life and sustenance.
2. Union dues are the lifeblood of the union.

EXCEPTION TO THE REQUIREMENT OF UNION DUES AND AGENCY FEES

INDIVIDUAL WRITTEN AUTHORIZATION:
1.For mandatory activities provided
under the Code; and
2. When non-members of the union
avail of the benefits of the CBA.
- said non-members may be assessed
union dues equivalent to that paid by
members.
Jurisdiction over
disputes is with the Regional
Director of the DOLE, not the
Labor Arbiter
UNION DUES
Union dues are the regular monthly
contributions paid by the members to
the union in exchange for the benefits
given to them by the collective
bargaining agreement (CBA) and to
finance the activities of the union in
representing them.
AGENCY FEES
If such dues are collected by the union
from non-members, such dues are
referred to as agency fees. Agency
check-off fees are charged from the
non-members who benefited under the
CBA negotiated by the union, despite
non-membership to the union.
As held in Holy Cross of Davao College, Inc. v.
Joaquin, the collection of agency fees in an amount
equivalent to union dues and fees, from employees
who are not union members, is recognized by Article
248 (e) (now 259 (e) ) of the Labor Code. The
employee’s acceptance of benefits resulting from a
CBA justifies the deduction of agency fees from his
pay and the union’s entitlement thereto. In this
aspect, the legal basis of the union’s right to agency
fees is neither contractual nor statutory, but
quasi-contractual, deriving from the established
principle that non-union employees may not unjustly
enrich themselves by benefiting from employment
conditions negotiated by the bargaining union.
No requirement of written authorization from the
non-union employees is necessary if the non-union
employees accept the benefits resulting from the
CBA. (Del Pilar Academy v. Del Pilar Academy
Employees Union, G.R. No. 170112, April 30, 2008)
UNION DUES DISTINGUISH FROM AGENCY FEES RIGHTS OF LEGITIMATE LABOR
ORGANIZATION
UNION DUES AGENCY FEES 1. Undertake activities for benefit of members
1. Union dues are Agency fees are 2. Sue and be sued
Deducted deducted from deducted from
3. Exclusive representative of all employees
non-members of
from the members of the union 4. Represent union members
the union. because they 5. Furnished by employers of audited financial
enjoy the statements
benefits under 6. Own properties
the CBA.
Any deductions may
7. Exempted from taxes
2. May be
not be deducted from deducted
Consent the salaries of the
union members
from the
without the written salary of
consent of the employees
workers affected. without their
consent.

PERSONS/EMPLOYEES WHO ARE NOT GRANTED

COVERAGE OF THE RIGHTS TO SELF-ORGANIZATION
THE RIGHT TO SELF-ORGANIZATION:
PERSONS/EMPLOYEES ELIGIBLE TO JOIN A PERSONS/EMPLOYEES ELIGIBLE TO JOIN A
LABOR ORGANIZATION FOR PURPOSES OF LABOR ORGANIZATION FOR MUTUAL AID
1. High-level government employees 4. Members of the Armed Forces of
COLLECTIVE BARGAINING: AND PROTECTION:
(E.O. 180 Sec. 3) (MANAGERIAL the Philippines, including police
1. All persons employed in commercial, 1. Ambulant,
GOVERNMENT EMPLOYEES) officers, policemen, firemen and jail
industrial and agricultural (CIA) enterprises, 2. Intermittent,
guards (E.O. 180 Sec. 4);
and 3. Rural,
2. Employees of international
2. In religious, charitable, medical or 4. Self-employed people
organizations with immunities (ICMC vs. 5. Confidential employees (Metrolab
educational (RCME) institutions whether 5. Itinerant workers, and
Calleja) vs. Confesor)
operating for profit or not 6. Workers without any definite employers
3. Managerial employees 6. Employees of cooperatives who
a. whose functions are normally are members (Benguet Elec. Coop.
considered as policy-making or vs Calleja)
managerial
b. whose duties are of a highly 7. Non-Employees (Rosario Bros. vs
confidential or highly technical in nature Ople)
(212 LC)

Reason for ineligibility of managerial employee

in the collective bargaining process-
1. Managerial employees are the alter ego of CONFIDENTIAL EMPLOYEES - by the very nature of their
the employers and thus they are supposed functions, they assist and act in a confidential capacity to,
to be on the side of the employer to act as or, have access to confidential matters of persons who
its representatives, and to see to it that its exercise managerial functions in the field of labor relations.
interests are well protected. The employer is Therefore, the rationale behind the ineligibility of managerial
not assured of such protection if these employees to form, assist or join a labor union equally
employees are union members. applies to them. (Philips Industrial Dev’t Inc. Vs. NLRC)
2. In the same manner, the labor union might
not be assured of their loyalty to the union in
view of the evident conflict of interest.
The union can also become
company-dominated with the presence of
managerial employees in Union Membership
(Bulletin Publishing Co. Inc. vs. Hon. Augusto
Sanchez).
RIGHTS OF EMPLOYEES IN THE PUBLIC GOVERNMENT – OWNED OR CONTROLLED
SERVICE CORPORATIONS WITHOUT ORIGINAL
b. BARGAINING RIGHTS - Corporations with CHARTER
original charters cannot bargain with the The GOCC without original charter is created
government concerning the terms and under Corporation Code. The employees are
conditions of their employment. However, covered by the Labor Code. Therefore the
they can negotiate with the government on employees have the same rights as those as
those terms and conditions of employment employees of private corporations, one of
which are not fixed by law. Thus, they have which is the right to strike.
limited bargaining rights.
- The GOCC created under Corporation Code,
being governed by the Labor Code, they can
bargain with the government concerning the
GOVERNMENT –OWNED OR CONTROLLED
CORPORATIONS WITH ORIGINAL CHARTER terms and conditions of their employment.
a. LAW Thus, they have unlimited bargaining rights.
- Employees cannot stage strikes since they are governed
by the Civil Service Law. They are enjoined by Civil Service
Memorandum Circular No. 6, under pain of administrative
sanctions from staging strikes, demonstrations, mass
leaves, walkouts and other concerted activities.

REASONS WHY EMPLOYEES IN GOCCs INCORPORATED

GOCC WITH ORIGINAL CHARTER GOCC WITHOUT ORIGINAL
UNDER THE CORPORATION CODE ARE ALLOWED TO
CHARTER
ORGANIZE:

Under Article IX-B, Section 2, paragraph I of
the 1987 Constitution, only GOCCs with
original charters are covered by civil
service laws. (PNCC v. NLRC, G.R. No.
248401, 23 June 2021) as such they cannot
stage a strike.
Officers and employees of government-owned or 1. they are not involved in public service
controlled corporations without original charters
are covered by the Labor Code, not the Civil 2. terms of employment are not fixed by
Service Law. (GSIS Family Bank Employees Union v. Villanueva, G.R. No.
210773, 23 January 2019)
law
3. they are governed by the provisions of
the Labor Code not by the Civil Service
Law

THE RIGHT TO SELF-ORGANIZATION SHALL NOT

TEST TO DETERMINE IF SUPERVISOR IS A RANK
AND FILE OR MANAGERIAL EMPLOYEE
BE ABRIDGED” MEANING:
It shall be unlawful for any person to:
a. restrain,
· The TEST IS: Do they exercise · If their responsibilities do not
independent judgment which is inherently require the b. coerce,
not subject to evaluation of exercise of discretion and c. discriminate against, or
other department heads/other independent judgment [or
d. unduly interfere
superiors? If yes, then they merely routinary/clerical in
may form a labor organization nature] then they may join the
of their own [separate from the union composed of the rank with employees and workers in their exercise of
rank and file employees) and file employees.
the right to self-organization.

-Any act intended to weaken or defeat the right is

NOTE: It is the nature of the employee’s functions regarded by law as an offense, which is
and not the nomenclature or title given to his job
technically called “unfair labor practice.”
which determines whether he has a rank and file or
managerial status. (Engineering Equipment, Inc. vs.
NLRC)
INTRA-UNION AND INTER-UNION DISPUTES
JURISDICTION OVER INTRA-UNION AND
INTER-UNION DISPUTES

INTRA-UNION DISPUTES – refers to any INTER-UNION DISPUTES -refers to any

conflict between and among union conflict between and among legitimate EXCLUSIVE AND ORIGINAL JURISDICTION OF THE BLR –
members, including grievances arising from labor organizations involving to act at its own initiative or upon the request of either or both parties on all:
any violation of the rights and conditions of representation questions for purposes of 1. INTRA- union conflicts
membership, violation of or disagreement collective bargaining or to any other 2. INTER- union conflicts
over any provision of the union’s conflict or dispute between legitimate 3. All DISPUTES, GRIEVANCES OR PROBLEMS ARISING FROM OR AFFECTING LABOR
constitution and by-laws, or disputes arising labor organizations based on any MANAGEMENT RELATIONS IN ALL WORKPLACES WHETHER AGRICULTURAL OR
from chartering or affiliation. violations of their rights as labor NON-AGRICULATURAL.
organizations.

The parties may however, by agreement, settle

their differences by submitting their case to a
voluntary arbitrator rather than taking the case
to the BLR.

DUTY TO BARGAIN Art. 264. When there is a collective

COLLECTIVELY bargaining agreement, the duty to bargain It is clear from the above provision of law that until a
Duty to bargain collectively collectively shall also mean that neither new Collective Bargaining Agreement has been
the duty to bargain collectively means the party shall terminate nor modify such executed by and between the parties, they are
performance of a mutual obligation to meet and agreement during its lifetime. However, duty-bound to keep the status quo and to continue in
convene promptly and expeditiously in good faith for either party can serve a written notice to full force and effect the terms and conditions of the
the purpose of negotiating an agreement with terminate or modify the agreement at least existing agreement. The law does not provide for any
respect to wages, hours of work and all other terms sixty (60) days prior to its expiration date. It exception nor qualification as to which of the
and conditions of employment including proposals shall be the duty of both parties to keep economic provisions of the existing agreement are
for adjusting any grievance or questions arising the status quo and to continue in full force to retain force and effect, therefore, it must be
under such agreement and executing a contract and effect the terms and conditions of the understood as encompassing all the terms and
incorporating such agreements if requested by existing agreement during the 60-day conditions in the said agreement. (New Pacific
either party but such duty does not compel any party period and/or until a new agreement is Timber & Supply Company, Co., Inc. v. NLRC, Buat,
to agree to a proposal or to make any concession. reached by the parties. (P.D. 442, Labor G.R. No. 124224, 17 March 2000)
(Art. 252) Code)

CONSENT ELECTION
RUN-OFF ELECTION
Consent election means the election Run-off Election" refers to an election between the labor
voluntarily agreed upon by the parties to unions receiving the two (2) highest number of votes in a
determine the issue of majority
representation of all the workers in the certification or consent election with three (3) or more
appropriate collective bargaining unit choices, where such a certified or consent results in none
The difference between a consent
election and a certification election is
of the three (3) or more choices receiving the majority of
that the conduct of a consent election is the valid votes cast; provided that the total number of
agreed upon by the parties to the
petition while the conduct of a
votes for all contending unions is at least fifty percent
certification election is ordered by the (50%) of the number of votes cast.
Med-Arbiter. (LEPANTO CONSOLIDATED
MINING COMPANY, Petitioner, vs. THE
LEPANTO CAPATAZ UNION, G.R. No.
157086, February 18, 2013
 RUN-OFF ELECTION ILLUSTRATION
In NATIONAL UNION OF The two union who received the
WORKERS IN HOTELS, EMPLOYEES highest number of votes are the
A run-off election refers RESTAURANTS AND ALLIED NUWHRAIN-MPHC with 151 votes
IN VOTERS’ 353
a. to an election between the labor unions receiving the two INDUSTRIES- MANILA PAVILION
LIST = and HIMPHLU with 169 votes. No
HOTEL CHAPTER, Petitioner, vs.
(2) highest number of votes in a certification or consent SECRETARY OF LABOR AND TOTAL VOTES union have 1 vote.
346
election with three (3) or more choices, EMPLOYMENT, et al., CAST =
Respondents. G.R. No. 181531, The total votes cast is 346. Majority
b. where such a certified or consent election results in none NUWHRAIN-M
July 31, 2009), A certification 151 of the valid votes casts is 174.
PHC =
of the three (3) or more choices receiving the majority of election was conducted on June None among NUWHRAIN-MPHC
16, 2006 among the HIMPHLU = 169 (151), HIMPHLU(169) and no
the valid votes cast; rank-and-file employees of union(1) received 174 or majority of
NO UNION = 1
c. provided that the total number of votes for all contending respondent Holiday Inn Manila
SPOILED = 3 the total votes cast. The total
Pavilion Hotel (the Hotel) with
unions is at least fifty percent (50%) of the number of the following results: SEGREGATED
number of votes cast for
22 NUWHRAIN-MPHC (151), HIMPHLU
votes cast. =
(169+151=320) is 320 or at least
50% of the number of votes cast.
Then the holding of a run-off
election between HIMPHLU and
NUWHRAIN-MPHC is in order.

SUBSTITUTIONARY DOCTRINE

Substitutionary doctrine refers to a principle in labor law which states

that even during the existence of a collective bargaining agreement
executed between the employer and the employees through their agent,
the employees can change the said agent but the contract continues to
bind them up into its expiration date.

According to the doctrine, the employees cannot revoke the validly

executed collective bargaining contract with their employer by the
simple expedient of changing their bargaining agent. In the event, the
new agent must respect the earlier contract.