REVIEWER ON LABOR RELATIONS
A. RIGHT TO SELF 4. The right to form or join a labor
ORGANIZATION
RIGHT TO SELF-ORGANIZATION:
A FUNDAMENTAL RIGHT
Self-organization is a they could not choose their own
fundamental right guaranteed by the
Philippine Constitution and the Labor
Code. Employees have the right to
form, join or assist labor organizations
for the purpose of collective bargaining
or for their mutual aid and protection.
[UST Faculty Union v. Bitonio, G.R. No.
131235 (1999)]
INFRINGEMENT OF THE RIGHT TO
SELF ORGANIZATION
It shall be unlawful for any
person to restrain, coerce, discriminate
against or unduly interfere with
employees and workers in their
exercise of the right to self-organization
[Art. 257]
SCOPE OF RIGHT TO SELF-
ORGANIZATION
1. Right to form, join or assist labor
organizations of their own choosing
for the purpose of collective
bargaining through representatives
of their own choosing [Art. 257].
2. Right to engage in lawful
concerted activities for the same
purpose (collective bargaining) or
for their mutual aid and protection
[Art. 257]
3. The right of any person to
join an organization also includes
the right to leave that organization
and join another one. [Heritage Hotel
Manila v. PIGLAS- Heritage, G.R.
No. 177024 (2009)]
organization necessarily includes the
right to refuse or refrain from
exercising said right. [Reyes v.
Trajano, G.R. No. 84433 (1992)]
5. The freedom to form organizations
would be rendered nugatory if
leaders to speak on their behalf and
to bargain for them. [Pan-
American World Airways, Inc v.
Pan-American Employees Association,
G.R. No. L-25094 (1969)]
6. Recognition of the tenets of the sect
should not infringe on the basic
right of self- organization granted
by the Constitution to workers,
regardless of religious affiliation.
[Kapatiran sa Meat and Canning
Division v. Calleja, G.R. No. 82914
(1988)]
1. WHO MAY OR MAY NOT
EXERCISE THE RIGHT
a. All employees
b. Government employees of
corporations created under the
Corporation Code
c. Supervisory Employees
d. Aliens with valid working permits
e. Security personnel
(a) All Employees
All persons employed in
commercial, industrial and agricultural
enterprises and in religious, charitable,
medical or educational institutions,
whether operating for profit or not,
shall have the right to self-organization
and to form, join or assist labor
organizations of their own choosing
for purposes of collective bargaining.
(Presumes an employer-employee
relationship)
 REVIEWER ON LABOR RELATIONS

Ambulant, intermittent and

All government employees can
itinerant workers, self-employed people,
form, join or assist employees’
rural workers and those without any
organizations of their own choosing for
definite employers may form labor
the furtherance and protection of their
organizations for their mutual aid
interests. They can also form, in
and protection. [Art. 253]
conjunction with appropriate
Employees of non-profit government authorities, labor-
organizations are now permitted to form, management committees, work
organize or join labor unions of their councils and other forms of workers’
choice for purposes of collective participation schemes to achieve the
bargaining [FEU-Dr. Nicanor Reyes same objectives. [E.O. 180, Sec. 2 (1987)]
Medical Foundation Inc. v. Trajano, G.R.
No. 76273 (1987)] (c) Supervisory Employees

Any employee, whether employed Supervisory employees are those

for a definite period or not, shall, who, in the interest of the
beginning on his first day of service, be employer, effectively recommend
considered an employee for such managerial actions if the exercise
purposes of membership in any labor of such authority is not merely
union. [Art. 292(c)] routinary or clerical in nature but
requires the use of independent
(b) Government employees of judgment. [Art. 219(m)]
corporations created under the
Corporation Code
What is essential is the
The right to self-organization nature of the employee’s function
shall not be denied to government and not the nomenclature or title
employees. [Sec. 2(5), Art. IX-B, given to the job which determines
Constitution] whether the employee has rank-and-
file or managerial status or whether
Employees of government he is a supervisory employee.
corporations established under the [Tagaytay Highlands International Golf
Corporation Code shall have the right Club, Inc. v. Tagaytay Highlands
to organize and to bargain Employees Union-PTGWO, G.R. 142000
collectively with their respective (2003)]
employers.
(d) Aliens with valid working permits
All other employees in the civil
General Rule: All aliens, natural or
service shall have the right to form
juridical, [ … ] are strictly prohibited
associations for purposes not contrary
from engaging directly or indirectly in
to law. [Art. 254]
all forms of trade union activities. [Art.
284]
 REVIEWER ON LABOR RELATIONS
EXCEPTION: Aliens may exercise the
right to self-organization and join or assist
labor unions for purposes of collective
bargaining, provided the following requisites
are fulfilled:
1. With valid working permits issued by
the DOLE; and
2. They are nationals of a country
which grants the same or similar rights to
Filipino workers [Art. 284]
a. As certified by DFA; OR
b. Has ratified either ILO Conventions
No. 87 and 98 [Sec. 2, Rule II, Book V,
IRR]
(e) Security personnel
The security guards and other
personnel employed by the security service
contractor shall have the right:
1. To form, join, or assist in the formation of
a labor organization of their own choosing
for purposes of collective bargaining and
2. To engage in concerted activities which
are not contrary to law including the
right to strike. [D.O. No. 14 Series of
2001 (Guidelines Governing the
Employment and Working Conditions of
Security Guards and Similar Personnel in
the Private
Security Industry)]
On Dec. 24, 1986, President Corazon
Aquino issued EO No. 111 which
eliminated the provision which made
security guards ineligible to join any labor
organization. In 1989, Congress passed RA
6715 which also did not impose limitations
on the ability of security guards to join
labor organizations. Thus, security guards
“may now freely join a labor organization of
the rank-and-file or that of the supervisory
union, depending on their rank.” [Manila
Electric Co. v. SOLE, G.R. No. 91902 (1991)]
Ineligibility of Managerial Employees;
Rights of Supervisory Employees
Managerial employees are not
eligible to join, assist or form any labor
organization. [Art. 255]
Supervisory employees shall not be
eligible for membership in the collective
bargaining unit of the rank-and-file
employees but may join, assist or form
separate collective bargaining units
and/or legitimate labor organizations of
their own. The rank and file union and
the supervisors' union operating within
the same establishment may join the same
federation or national union.
Rationale:
Supervisory employees, while in
the performance of supervisory
functions, become the alter ego of the
management in the making and the
implementing of key decisions at the
sub-managerial level. Certainly, it
would be difficult to find unity or
mutuality of interests in a bargaining
unit consisting of a mixture of rank-
and-file and supervisory employees.
[Toyota Motor Phil. Corp. v. Toyota Motor
Phil. Corp. Labor Union, G.R. No. 121084
(1997)]
SUPERVISOR AND RANK AND
FILE UNION AFFILIATION
The rank and file union and the
supervisors’ union operating within the
same establishment may join the same
federation or national union. [Art. 255]
 REVIEWER ON LABOR RELATIONS
a. DOCTRINE OF NECESSARY
IMPLICATION
While Art. 245 [now 255] of the
Labor Code singles out managerial
employees as ineligible to join, assist or
form any labor organization, under the
doctrine of necessary implication,
confidential employees are
similarly disqualified. This doctrine
states that what is implied in a statute is
as much a part thereof as that which is
expressed. [Metrolab Industries Inc. v.
Roldan-Confessor, G.R. No. 108855
(1996)]
NATURE OF ACCESS TEST
Confidential employees, by the
nature of their functions, assist and
act in a confidential capacity to, or
have access to confidential matters of,
persons who exercise managerial
functions in the field of labor relations.
Requisites
1. The confidential relationship must
exist between the employees
and his supervisor, and
2. The supervisor must handle the
prescribed responsibilities relating
to labor relations. [San Miguel
Supervisors and Exempt Union v.
Laguesma, G.R. No. 110399
(1997)]
FUNCTION TEST:
NOMENCLATURE IS NOT
CONTROLLING
The mere fact that an employee is
designated “manager” does not ipso
facto make him one. Designation
should be reconciled with the actual
job description of the employee. [Paper
Industries Corp. of the Philippines.
v. Laguesma, G. R. No.101738 (2000)]
CONFIDENTIAL INFORMATION:
MUST RELATE TO LABOR
RELATIONS AND NOT FROM A
BUSINESS STANDPOINT
An employee must assist or act in a
confidential capacity and obtain
confidential information relating to
labor relations policies. Exposure to
internal business operations of the
company is not per se a ground for the
exclusion in the bargaining unit. [Coca-
Cola Bottlers v. IPTEU,
G.R. No. 193798 (2015)]
Rationale of Exclusion of Confidential
Employees
If confidential employees could
unionize in order to bargain for
advantages for themselves, then they
could be governed by their own
motives rather than the interest of the
employers.
Moreover, unionization of
confidential employees for the
purpose of collective bargaining
would mean the extension of the law
to persons or individuals who are
supposed to act in the interest of the
employers. It is not far-fetched that in
the course of collective bargaining,
they might jeopardize that interest
which they are duty bound to protect.
[Metrolab Industries Inc. v. Roldan-
Confessor, G.R. No. 108855 (1996)]
 REVIEWER ON LABOR RELATIONS
OTHER PEOPLE WHO CANNOT FORM,
JOIN OR ASSIST LABOR
ORGANIZATIONS
(a) New Employees
[Persons who] are not
employees of [a company] are not
entitled to the constitutional right to
join or form a labor organization for
purposes of collective bargaining.
[ … ] The question of whether
employer-employee relationship exists is
a primordial consideration before
extending labor benefits under the
workmen's compensation, social
security, Medicare, termination pay and
labor relations law. [Singer Sewing
Machine Co. v. Drilon,
G.R. No. 91307, 1991]
But employees of the contractor
can still form a labor union; the labor
union can be established to bargain with
the contractor but not with the principal
employer. [Prof. Battad]
(b) Employee-member of a Cooperative
General Rule:
An employee of a cooperative who
is a member and co-owner thereof
cannot invoke the right to collective
bargaining for certainly an owner
cannot bargain with himself or his co-
owners. [Batangas-Electric Cooperative
Labor Union v. Romeo A. Young,
G.R. No. 62386 (1988)]
Irrespective of the degree of their
participation in the actual management
of the cooperative, all members thereof
cannot form, assist or join a labor
organization for the purpose of
collective bargaining. [Benguet Electric
Cooperative v. Ferrer-Calleja, G.R. No.
79025 (1989)]
Exception: Employees who withdrew
their membership from the cooperative
are entitled to form or join a labor union
for the negotiations of a Collective
Bargaining Agreement. [Central Negros
Electric Cooperative, Inc. v. DOLE,
G.R. No. 94045 (1991)]
(c) Employees of International
Organizations
International organizations are
endowed with some degree of
international legal personality. They are
granted jurisdictional immunity, as
provided in their organization’s
constitutions, to safeguard them from
the disruption of their functions.
Immunity [ … ] is granted to
avoid interference by the host country
in their internal workings. The
determination [by the executive
branch] has been held to be a
political question conclusive upon the
Courts in order not to embarrass
apolitical department of
Government. [Hence], a certification
election cannot be conducted in an
international organization to which
the Philippine Government has granted
immunity from local jurisdiction.
[International Catholic Migration
Commission v. Calleja, G.R. No. 85750
(1990)]
(d) Members of the AFP, Policemen,
Police Officers, Firemen, and Jail
Guards
Members of the AFP,
Policemen, Police Officers, Firemen
and Jail Guards are expressly
excluded by EO 180, Sec. 4 from the
coverage of the EO 180 which
provides guidelines for the exercise of
the right to organize of government
employees.
 REVIEW ER ON LABOR RELATIONS
SUMMARY - Who Cannot Form, Join or
Assist Labor Organizations
a. Managerial employees
b. Confidential employees
c. Non-employees
d. Member-employee of a cooperative
e. Employees of international organizations
f. High-level government employees
g. Members of the AFP, police officers,
policemen, firemen and jail guards
2. Commingling or Mixture of
Membership
Effect of Inclusion of Employees Outside
the Bargaining Unit or Commingling
General Rule: It shall not be a ground for the
cancellation of the registration of the union.
Said employees are automatically deemed
removed from the list of membership of said
union. [Art. 256]
Exception: Unless such mingling was brought
about by misrepresentation, false statement or
fraud under Art. 247 (Grounds for cancellation
of Union Registration) of the Labor Code.
[SMCC-Super v. Charter Chemical and
Coating Corporation, G.R. No. 169717 (2011)]
3. Rights and Conditions of
Membership
a. Nature of Relationship
i. Member-Labor Union
The nature of the relationship between the
union and its members is fiduciary in nature,
which arises from the dependence of the
employee on the union, and from the
comprehensive power vested in the union with
respect to the individual. The union may be
considered but the agent of its members for the
purpose of securing for them fair and just
wages and good working conditions. [Heirs of
Cruz v. CIR, G.R. No. L-23331-32 (1969)]
Admission and Discipline of Members
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. [Art.
250(e)]
Prohibition on subversive activities or
membership
No labor organization shall knowingly admit as
members or continue in membership any
individual who:
1. Belongs to a subversive organization; or
2. Who is engaged directly or indirectly in any
subversive activity;
Unions cannot arbitrarily exclude qualified
applicants
Unions are not entitled to arbitrarily exclude
qualified applicants for membership, and a
closedshop provision would not justify the
employer in discharging, or a union in insisting
upon the discharge of, an employee whom the
union thus refuses to admit to membership,
without any reasonable ground therefor.
Needless to say, if said unions may be
compelled to admit new members, who have
the requisite qualifications, with more reason
may the law and the courts exercise the
coercive power when the employee involved is
a long-standing union member, who, owing to
provocations of union officers, was impelled to
tender his resignation which he forthwith
withdrew or revoked. [Salunga v. CIR, G.R.
No. L-22456 (1967)]
Members who seek destruction of union
lose right to remain as members
Inherent in every labor union, or any
organization for that matter, is the right of self-
preservation. When members of a labor union,
therefore, sow the seeds of dissension and
strife within the union; when they seek the
disintegration and destruction of the very union
to which they belong, they thereby forfeit their
rights to remain as members of the union which
they seek to destroy. [Villar v. Inciong, G.R. No.
L-50283-84 (1983)]
ii. Labor Union-Federation
Local unions do not owe their creation and
existence to the national federation to which
they are affiliated but, instead, to the will of their
members, [ … ] The local unions remain the
 REVIEW ER ON LABOR RELATIONS
basic units of association, free to serve their
own interests subject to the restraints imposed
by the constitution and by-laws of the national
federation, and free also to renounce the
affiliation upon the terms laid down in the
agreement which brought such affiliation into
existence. [Philippine Skylanders, Inc. v.
NLRC, G.R. No. 127374 (2002)]
Union Chartering
Affiliate
An independent union affiliated with a
federated, national union or a chartered local
which was subsequently granted independent
registration but did not disaffiliate from its
federation, reported to the Regional Office and
the Bureau in accordance with Rule III, Secs. 6
and 7 [Sec. 1(b), Rule I, Book V, IRR]
Independent Union
A labor organization operating at the enterprise
level that acquired legal personality through
independent registration under Art. 234 of the
Labor Code and Rule III, Sec. 2-A [Sec. 1(x),
Rule I, Book V]
National Union or Federation
A group of legitimate labor unions in a private
establishment organized for collective
bargaining or for dealing with employers
concerning terms and conditions of
employment for their member union or for
participating in the formulation of social and
employment policies, standards and programs,
registered with the BLR in accordance with
Rule III Sec. 2-B [Sec. 1(ll), Rule I, Book V,
IRR]
Chartered Local (Local Chapter)
A labor organization in the private sector
operating at the enterprise level that acquired
legal personality through registration with
Regional Office [Sec. 1(j), Rule I, Book V, IRR]
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:
1. The names of the chapter's officers, their
addresses, and the principal office of the
chapter; and
2. 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:
1. Certified under oath by:
a. Secretary; or
b. Treasurer
2. Attested by: Its president [Art. 241]
Lesser requirements for Chartered locals
The intent of the law in imposing less
requirements in the case of a branch or local of
a registered federation or national union is to
encourage the affiliation of a local union with a
federation or national union in order to increase
the local unions’ bargaining powers respecting
terms and conditions of labor. [SMCEU-
PTGWO v. SMPEU-PDMP, G.R. No. 171153
(2007)]
Trade Union Centers cannot create locals
or chapters
Art. 241 mentions only “a duly registered
federation or national union.”
The solemn power and duty of the Court to
interpret and apply the law does not include the
power to correct by reading into the law what is
not written therein. [SMCEU-PTGWO v.
SMPEU-PDMP, G.R. No. 171153 (2007)]
National Union or Federation v. Trade
Unions
National Union or
Trade Unions
Federation
With at least ten Composed of a
(10) locals or group of registered
chapters (or national unions or
independent unions federations
 REVIEW ER ON LABOR RELATIONS
[Sec. 2-B(5), Rule
III, Book V, IRR],
each of which must
be a duly
recognized
collective bargaining
agent [Art. 244]
Can directly create Cannot directly
local chapter [Art. create local chapter
241] [SMCEU-PTGWO v.
SMPEU-PDMP,
G.R. No. 171153
(2007)]
Purpose of Affiliation
To foster the free and voluntary organization of
a strong and united labor movement [Art. 218-
A(c)]
The sole essence of affiliation is to increase, by
collective action, the common bargaining
power of local unions for the effective
enhancement and protection of their interests.
Admittedly, there are times when without
succor and support local unions may find it
hard, unaided by other support groups, to
secure justice for themselves. [Philippine
Skylanders, Inc. v. NLRC, G.R. No. 127374
(2002)]
Nature of Relationship: Agency
The mother union, acting for and on behalf of
its affiliate, had the status of an agent while the
local union remained the basic unit of the
association, free to serve the common interest
of all its members subject only to the restraints
imposed by the constitution and by-laws of the
association. [...] The same is true even if the
local is not a legitimate labor organization.
[Filipino Pipe and Foundry Corp v. NLRC, G.R.
No. 115180 (1998)]
Effect of Affiliation
Inclusion of [the federation’s initials] in the
registration is merely to stress that they are its
affiliates at the time of registration. It does not
mean that said local unions cannot stand on
their own. [Adamson v. CIR, G.R. No. L-35120
(1984)]
Mere 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. Hence, local
unions are considered principals while the
federation is deemed to be merely their agent.
[Insular Hotel Employees Union NFL v.
Waterfront Insular Hotel, G.R. No. 174040-41
(2010)]
(a) Disaffiliation
In the absence of specific provisions in the
federation’s constitution prohibiting
disaffiliation or the declaration of autonomy of
a local union, a local may dissociate with its
parent union. [Malayang Manggagawa sa M.
Greenfield v. Ramos, G.R. No. 113907 (2000)]
Local unions have the right to separate from
their mother federation on the ground that as
separate and voluntary associations, local
unions do not owe their creation and existence
to the national federation to which they are
affiliated but, instead, to the will of their
members. [Philippine Skylanders, Inc. v.
NLRC, G.R. No. 127374 (2002)]
A local union is free to serve the interests of all
its members, including the freedom to
disaffiliate or declare its autonomy from the
federation to which it belongs when
circumstances warrant, in accordance with the
constitutional guarantee of freedom of
association. [Malayang Samahan ng mga
Manggagawa sa M. Greenfield, Inc. v. Ramos,
G.R. No. 113907 (2000)]
Period of Disaffiliation
Generally, a labor union may disaffiliate from
the mother union to form a local or independent
union only during the 60-day freedom period
immediately preceding the expiration of the
CBA. However, even before the onset of the
freedom period, disaffiliation may be carried
out when there is a shift of allegiance on the
part of the majority of the members of the
union. [Alliance of Nationalist and Genuine
 REVIEW ER ON LABOR RELATIONS
Labor Organization v. Samahan ng mga
Manggagawang Nagkakaisa sa Manila Bay
Spinning Mills, G.R. No. 118562 (1996)]
[A] local union which has affiliated itself with a
federation is free to sever such affiliation
anytime and such disaffiliation cannot be
considered disloyalty. [Malayang Manggagawa
sa M. Greenfield v. Ramos, G.R. No. 113907
(2000)]
Effect of Disaffiliation
On legal personality
A registered independent union retains its legal
personality while a chartered local loses its
legal personality unless it registers itself.
No effect on CBA
A disaffiliation does not disturb the
enforceability and administration of a collective
agreement; it does not occasion a change of
administrators of the contract nor even an
amendment of the provisions thereof.
[Volkschel Labor Union v. BLR, No. L-45824
(1985)]
Obligation to pay union dues is
coterminous with membership
“The employees’ check-off authorization, even
if declared irrevocable, is good only as long as
they remain members of the union concerned”.
A contract between an employer and the
parent organization as bargaining agent for the
employees is terminated by the disaffiliation of
the local of which the employees are members.
[Volkschel Labor Union v. BLR, No. L-45824
(1985)]
Power to represent principal severed
By [the local union’s disaffiliation from the
federation], the vinculum that previously bound
the two entities was completely severed. [The
federation] was divested of any and all power
to act in representation of the union. Thus, any
act performed by [the federation] affecting the
interests and affairs of the [local union] is
rendered without force and effect. [ANGLO v.
Samana, G.R. No. 118562 (1996)]
(b) Substitutionary Doctrine
The “substitutionary” doctrine provides that the
employees cannot revoke the validly executed
collective bargaining contract with their
employer by the simple expedient of changing
their bargaining agent.
It is in the light of this that the phrase “said new
agent would have to respect said contract”
must be understood. It only means that the
employees, thru their new bargaining agent,
cannot renege on their collective bargaining
contract, except of course to negotiate with
management for the shortening thereof.
[Benguet Consolidated v. BCI Employees and
Workers Union-PAFLU, G.R. No. L-24711
(1968)]
Conditions to apply the doctrine
1. Change of bargaining agent (through
affiliation, disaffiliation, or other means);
and
2. Existing CBA with the previous bargaining
agent [Benguet Consolidated v. BCI
Employees and Workers Union-PAFLU,
G.R. No. L-24711 (1998)]
Effects
1. New bargaining agent cannot revoke and
must respect the existing CBA; and
2. It may negotiate with management to
shorten the existing CBA’s lifetime.
B. BARGAINING UNIT
Definition
“Bargaining Unit” refers to a group of
employees sharing mutual interests within a
given employer unit, comprised of all or less
than all of the entire body of employees in the
employer unit or any specific occupational or
geographical grouping within such employer
unit. [Sec. 1(e), Rule I, Book V, IRR]
It is a group of employees of a given employer,
comprised of all or less than all of the entire
body of employees, which the collective
interests of all the employees indicate to be
best suited to serve reciprocal rights and duties
of the parties consistent with equity to the
 REVIEW ER ON LABOR RELATIONS
employer. [Belyca Corp. v. Calleja, G.R. No.
77395 (1988) citing Rothenberg]
Functions of an Appropriate Bargaining
Unit
1. An ELECTORAL DISTRICT. – It marks the
boundaries of those who may participate in
a certification election.
2. An ECONOMIC UNIT. – They are a group
of employees with community of interests.
3. A SOVEREIGN BODY. – It selects the sole
and exclusive bargaining agent.
Role of a bargaining unit
The labor organization designated or selected
by the majority of the employees in an
appropriate collective bargaining unit shall be
the exclusive representative of the employees
in such unit for the purpose of collective
bargaining. [Art. 267]
Right of individual or group of employees to
present grievances
An individual employee or group of employees
shall have the right at any time to present
grievances to their employer. [Art. 267]
CBA Coverage
It is a well-settled doctrine that the benefits of a
collective bargaining agreement extend to the
laborers and employees in the collective
bargaining unit, including those who do not
belong to the chosen bargaining labor
organization. [Mactan Workers Union v.
Aboitiz, G.R. No. L-30241 (1972)]
Note: An employee employed, whether for a
definite period is not, is an EE for purposes of
joining a union [Art. 292(c)]. But, whether or not
a union member, an EE part of the CBU is
entitled to CBA benefits unless excluded under
the CBA.
Effect of Prior Agreement
A prior CBA excluding a group of employees
from the bargaining unit of rank-and-file
employees does not bar the parties from
renewing the existing CBA and proposing and
discussing modifications or amendments
thereto during the freedom period. [De La Salle
University v. DLSU Employees Association EA,
G.R. No. 109002, (2000)]
Rationale
A prior agreement as to the exclusion of
monthly-paid rank-and-file employees from the
bargaining union of the daily-paid rank-and-file
can never bind subsequent federations and
unions. as employees were not privy to that
agreement. And even if [they were privy, it can
never bind subsequent federations and unions
because it is a curtailment of the right to self-
organization guaranteed by the labor laws
[General Rubber & Footwear Corp. v. BLR,
G.R. No. 74262 (1987)]
Corporate Entities
General Rule: Two companies having
separate juridical personalities shall NOT be
treated as a single bargaining unit. [Diatagon
Labor Federation Local v. Ople, G.R. No. L-
44493-94 (1980)]
Exception: Pervasive Unitary Aspect of
Management Doctrine
The cross-linking of the agencies’ command,
control, and communication systems indicate
their unitary corporate personality. Accordingly,
the veil of corporate fiction [...] should be lifted
for the purpose of allowing the employees of
the three agencies to form a single labor union.
A settled formulation of the doctrine of piercing
the corporate veil is that when two business
enterprises are owned, conducted, and
controlled by the same parties, both law and
equity will, when necessary to protect the rights
of third parties, disregard the legal fiction that
these two entities are distinct and treat them as
identical or as one and the same. [Ang Lee v.
Samahang Manggagawa ng Super
Lamination, G.R. No. 193816 (2016)]
Determining whether or not to establish
separate bargaining units
The fact that the businesses are related, that
some of the employees are the same persons
working in the other company and the physical
plants, offices and facilities are in the same
compound are NOT sufficient to justify piercing
the corporate veil. [Indophil Textile Mills
 REVIEW ER ON LABOR RELATIONS
Workers Union v. Calica, G.R. No. 96490
(1992)]
Spun-off corporations
The transformation of the companies is a
management prerogative and business
judgment which the courts cannot look into
unless it is contrary to law, public policy or
morals. [...] Considering the spin-offs, the
companies would consequently have their
respective and distinctive concerns in terms of
the nature of work, wages, hours of work and
other conditions of employment. [...] The nature
of their products and scales of business may
require different skills, volumes of work, and
working conditions which must necessarily be
commensurate by different compensation
packages. [San Miguel Union v. Confesor,
G.R. No. 111262 (1996)]
TEST TO DETERMINE THE CONSTITUENCY
OF AN APPROPRIATE BARGAINING UNIT –
4 Factors:
1. Will of the Employees (Globe Doctrine)
2. Affinity and unity of employees’ interest
(Substantial Mutual Interests Rule)
3. Prior collective bargaining history
4. Employment status [Democratic Labor
Association v. Cebu Stevedoring Co. Inc,
G.R. No. L-10321 (1958); University of the
Philippines v. Ferrer-Calleja, G.R. No.
96189 (1992)]
Note: Where the employment status was not at
issue but the nature of work of the employees
concerned; the Court stressed the importance
of the 2nd factor. [Belyca Corp. v. Calleja, G.R.
No. 77395 (1988)]
Other factors:
1. Geography and Location
2. Policy of avoiding fragmentation of the
bargaining unit
Globe Doctrine
A practice designated as the “Globe doctrine,”
sanctions the holding of a series of elections,
not for the purpose of allowing the group
receiving an overall majority of votes to
represent all employees, but for the specific
purpose of permitting the employees in each of
the several categories to select the group
which each chooses as a bargaining unit.
[Kapisanan ng mga Manggagawa sa Manila
Road Co. v. Yard Crew Union, G.R. Nos. L-
16292-94 (1960)]
Rationale: Highly skilled or specialized
technical workers may choose to form their
own bargaining unit because they may be in
better position to bargain with the employer
considering the market value of their skills.
Community or Mutuality of Interests
The basic test in determining the appropriate
bargaining unit is that a unit, to be appropriate,
must affect a grouping of employees who have
substantial, mutual interests in wages, hours,
working conditions, and other subjects of
collective bargaining. [UP v. Ferrer-Calleja,
G.R. No. 96189, (1992)]
Rationale: There are greater chances of
success for the collective bargaining process.
The bargaining unit is designed to maintain the
mutuality of interest among the employees in
such unit.
When the interest between groups has
changed over time, there is reason to dissolve,
change or expand a certain bargaining unit.
Prior Collective Bargaining History
The existence of a prior collective bargaining
history is neither decisive nor conclusive in the
determination of what constitutes an
appropriate bargaining unit. [Sta. Lucia East
Commercial Corporation v. SOLE, G.R. No.
162355 (2009)]
Employment Status
Among the factors to be considered [is the]
employment status of the employees to be
affected [regular, casual, seasonal,
probationary, etc.], that is the positions and
categories of work to which they belong [....]
[Belyca Corp. v. Calleja, G.R. No. 77395
(1988)]
Geography and Location
Geography and location only play a significant
role if:
 REVIEW ER ON LABOR RELATIONS
a. The separation between the camps [...] and
the different kinds of work in each [...] all
militate in favor of the system of separate
bargaining units;
b. [When] the problems and interests of the
workers are peculiar in each camp or
department;
c. The system of having one collective
bargaining unit in each camp [...] [has
operated satisfactorily in the past.]
[Benguet Consolidated Inc. and Balatok
Mining Co. v. Bobok Lumberjack
Association, G.R. No. L-11029 (1958)]
Policy of Avoiding Fragmentation of the
Bargaining Unit
It bears noting that the goal of the DOLE is
[geared] towards “a single employer wide unit
which is more to the broader and greater
benefit of the employees working force.”
The philosophy is to avoid fragmentation of the
bargaining unit so as to strengthen the
employees’ bargaining power with the
management. To veer away from such goal
would be contrary, inimical and repugnant to
the objectives of a strong and dynamic
unionism. [Phil. Diamond Hotel and Resort Inc
v. Manila Diamond Hotel and Employees
Union, G.R. No. 158075 (2006)]
Confidential employees lumped with
management
Since the confidential employees are very few
in number and are, by practice and tradition,
identified with the supervisors in their role as
representatives of management, such identity
of interest has allowed their inclusion in the
bargaining unit of supervisors-managers for
purposes of collective bargaining in turn as
employees in relation to the company as their
employer. [Filoil Refinery Corp. v. Filoil
Supervisory and Confidential Employees
Union, G.R. No. L-26736 (1972)]
C. BARGAINING
REPRESENTATIVE
The labor organization designated or selected
by the majority of the employees in an
appropriate collective bargaining unit shall be
the exclusive representative of the employees
in such unit for the purpose of collective
bargaining. [Art. 267]
Labor Management Council
Any provision of law to the contrary
notwithstanding, workers shall have the right:
a. To participate in policy and decision-
making processes of the establishment
where they are employed insofar as said
processes will directly affect their rights,
benefits and welfare.
b. To form labor-management councils, for
this purpose [Art. 267]
Selection of Representatives
In organized establishments,
• the workers’ representatives to the council
shall be nominated by the exclusive
bargaining representative.
In establishments where no legitimate labor
organization exists,
• the workers representative shall be elected
directly by the employees at large. [Sec. 2,
Rule XXI, Book V, IRR]
Qualification of Voters
Eligible Voter
Eligible voter refers to a voter belonging to the
appropriate bargaining unit that is the subject
of the petition for certification election [Sec.
1(q), Rule VIII, Book V, IRR]
All employees who are members of the
appropriate bargaining unit three (3) months
prior to the filing of the petition shall be eligible
to vote. [Sec. 6, Rule IX, Book V, IRR]
Note: Rule VIII, Sec. 14 (f) and Rule IX, Sec. 6
refer to employees as those employed 3
months prior to the issuance of the order/the
filing of the petition for certification election
 REVIEW ER ON LABOR RELATIONS
while Rule IX, Sec. 2 reckon the period of
employment from the “time of filing the
petition”. This difference has not been resolved
in any case before the Supreme Court.
All rank and file employees in the appropriate
bargaining unit, whether probationary or
permanent are entitled to vote. The Code
makes no distinction as to their employment
status. [...] All they need to be eligible to
support the petition is to belong to a bargaining
unit. [Airtime Specialists, Inc. v. Ferrer-Calleja,
G.R. No. 80612-16 (1990)]
Rationale for Non-Distinction Policy
Collective bargaining covers all aspects of the
employment relation and the resultant CBA
binds all employees in the bargaining unit. All
rank and file employees, probationary or
permanent, have a substantial interest in the
selection of the bargaining representative.
[Airtime Specialists, Inc. v Ferrer-Calleja,
supra.]
Dismissed employees [Sec. 6, Rule IX, Book
V, IRR]
General Rule: [Dismissed] employees [who]
contested legality of the dismissal in a forum of
appropriate jurisdiction at the time of the
issuance of the order for conduct of a
certification election
Exception: Dismissal was declared valid in a
final judgment at the time of the conduct of the
certification election.
Disagreement over voters’ list over
eligibility of voters
All contested voters shall be allowed to vote
[but] their votes shall be segregated and sealed
in individual envelopes. [Sec. 6, Rule IX, Book
V, IRR]
Voting List and Voters
The basis of determining voters may be agreed
upon by the parties (i.e. the use of payroll).
[Acoje Workers Union v. NAMAWU, G.R. No.
L-18848 (1963)]
Non-participation in previous election has
no effect
[Failure to take part in previous elections is no
bar to the right to participate in future elections.]
No law, administrative rule or precedent
prescribes forfeiture of the right to vote by
reason of neglect to exercise the right in past
certification elections. [Reyes v. Trajano, G.R.
No. 84433 (1992)]
1. Determination of Representation
Status
Methods of Establishing Majority Status
a. Sole and Exclusive Bargaining Agent
(SEBA) Certification
b. Consent Election
c. Certification Election
d. Run-Off Election
e. Re-Run election
Note: D.O. No. 40-I-15 replaced Voluntary
Recognition with SEBA certification, as of
September 7, 2015.
a. SEBA Certification
PROCEDURE [RULE VII, BOOK V, IRR]
1. File Request for SEBA Certification [Sec.
1]
Who: Any legitimate labor organization
File where: Regional Office which issued
its certificate of registration or certificate of
creation of chartered local
2. Indicate in the request [Sec. 2]:
a. Name and address of the requesting
legitimate labor organization;
b. Name and address of the company
where it operates;
c. Bargaining unit sought to be
represented;
d. Approximate number of employees in
the bargaining unit; and
e. Statement of the existence/non-
existence of other labor
organization/CBA.
 REVIEW ER ON LABOR RELATIONS
Certificate of Duly Certified by
Registration President of
requesting union
Creation of chartered President of the
local local federation of
the local
Both certificates should be attached to the
request
3. Regional Director shall act on the request
[Sec. 3]
When: Within one (1) day from submission
of request
Action:
a. Determine whether request is
compliant with Sec. 2 and whether the
bargaining unit sought to be
represented is organized or not; and
b. Request a copy of the payroll
If the Regional Director finds it deficient,
he/she shall advise the requesting union or
local to comply within ten (10) days from
notice. Failure to comply within the
prescribed period shall be deemed
withdrawal of the request.
If Unorganized Establishment [Sec. 4]
a. Finding of only 1 legitimate labor
organization – Regional Director shall call
a conference within five (5) working days
for the SUBMISSION of:
1. Names of employees in the covered
bargaining unit who signify support for
certification; [and these] employees
comprise at least majority of the
number of employees in the covered
bargaining unit; and
2. Certification under oath by the
president of the requesting union or
local that all documents submitted are
true and correct based on personal
knowledge
b. Failure to Complete Requirements for
SEBA Certification - the request for SEBA
certification shall be referred to the election
officer for the conduct of election pursuant
to Rule IX of this rules.
Note: If there is more than one Legitimate
Labor Organization, Art. 269 applies
If Organized Establishment [Sec. 6]
If the Regional Director finds the establishment
organized he/she shall refer it to the mediator-
arbitrator for determination and propriety of
conducting a certification election.
4. Regional Director shall act on the
submission [Sec. 4.1]
Incomplete The request shall be
requirements referred to Election Officer
for the conduct of election
pursuant to Rule IX.
Complete Regional Director shall
requirements issue a certification as
SEBA
5. Regional Director shall post the SEBA
Certification [Sec. 4.1]
Period: Fifteen (15) consecutive days
Where: At least two (2) conspicuous
places in the establishment or covered
bargaining unit.
EFFECT OF SEBA CERTIFICATION [Sec.
4.2]
Upon the issuance of the [SEBA Certification],
the certified union or local shall enjoy all the
rights and privileges of an exclusive bargaining
agent of all the employees in the covered
bargaining unit.
The certification shall bar the filing of a [PCE]
by any labor organization for a period of one (1)
year from the date of its issuance.
Upon expiration of this one-year period, any
legitimate labor organization may file a [PCE]
in the same bargaining unit represented by the
certified labor organization, unless a [CBA]
between the employer and the certified labor
organization was executed and registered with
the Regional Office in accordance with Rule
XVII.
b. Consent Election
Consent Election means the election
voluntarily agreed upon by the parties with or
without the intervention by DOLE [Sec. 1(i),
Rule I, Book V, IRR]
Procedure [Sec. 11, Rule VIII, Book V, IRR]
1. The parties may agree to hold a consent
election
a. Where no petition for certification
election was filed; or
b. Where a petition for certification
election had been filed, and upon the
intercession of Med-Arbiter [Sec. 25,
Rule VIII, Book V, IRR]
2. Mediator-Arbiter shall call for the consent
election, reflecting the parties’ agreement
and the call in the minutes of the
conference. Regional Director or
authorized representative shall determine
the Election Officer by raffle in the
presence of representatives of the
contending unions if they so desire
3. First pre-election conference is scheduled
within ten (10) days from the date of the
agreement. Subsequent conferences may
be called to expedite and facilitate the
holding of the consent election.
c. Certification Election
Certification Election is the process of
determining, through secret ballot, the sole and
exclusive representative of the employees in
an appropriate bargaining unit for purposes of
collective bargaining or negotiation. [Sec. 1(i),
Rule I, Book V, IRR]
PURPOSE
The purpose of a certification election is
precisely the ascertainment of the wishes of
the majority of the employees in the
appropriate bargaining unit: to be or not to be
represented by a labor organization, and in the
affirmative case, by which particular labor
organization. [Reyes v. Trajano, G.R. No.
84433 (1992)]
BARS TO A CERTIFICATE ELECTION
Petition for certification may be filed:
General Rule: Anytime
Exceptions:
1. One-year bar rule
2. Negotiation bar rule
3. Deadlock bar rule
4. Contract bar rule
See Grounds for denying a Petition for
Certification Election
(1) One-Year Bar Rule
No certification election may be held within 1
year from the time a valid certification, consent
or run-off election has been conducted within
the bargaining unit.
[If the order of the Med-Arbiter certifying the
results of the election has been appealed], the
running of the one-year period shall be
suspended until the decision on the appeal
becomes final and executory. [Sec. 3(a), Rule
VIII, Book V]
Note: This bar also applies to a SEBA
Certification under Rule VII. “The certification
shall bar the filing of a petition for certification
election by any labor organization for a period
of one (1) year from the date of its issuance.”
[Sec. 4.2, Rule VII, Book V, IRR]
(2) Negotiation Bar Rule
No certification of election may be filed when:
1. Within 1 year after the valid certification
election
2. The DULY CERTIFIED union has
COMMENCED AND SUSTAINED
negotiations in good faith with the employer
3. In accordance with Art. 261 of the Labor
Code Sec. 3(b), Rule VIII, Book V
 REVIEW ER ON LABOR RELATIONS
(3) Deadlock Bar Rule
No certification of election may be filed when:
1. The incumbent or certified bargaining
agent is a party;
2. A bargaining deadlock had been:
a. Submitted to conciliation or arbitration
or;
b. Had become the subject of a valid
notice of strike or lockout [Sec. 3(c),
Rule VIII, Book V, IRR]
A “deadlock” is defined as the “counteraction of
things producing entire stoppage;
• a state of inaction or of neutralization
caused by the opposition of persons or of
factions (as in government or voting body):
standstill.” [...]
• The word is synonymous with the word
impasse which [...] “presupposes
reasonable effort at good faith bargaining
which, despite noble intentions, does not
conclude in agreement between the
parties” [Divine World University v. SOLE,
G.R. No. 91915 (1992)]
(4) Contract Bar Rule
BLR shall not entertain any petition for
certification election or any other action which
may disturb the administration of DULY
REGISTERED existing collective bargaining
agreements affecting the parties, except under
Arts. 264, 265, and 268 [(60-day freedom
period)]. [Art. 238]
No petition for certification election may be filed
when a [CBA] between the employer and a
SEBA has been registered in accordance with
Art. 237.
Where such [CBA] is registered, the petition
may be filed only within sixty (60) days prior to
its expiry. [Sec. 3(d), Rule VIII, Book V, IRR].
The Contract-Bar Rule shall apply in any of the
following: (1) when there exists an unexpired
registered CBA; or (2) when there is no
challenge on the representation status of the
incumbent union during the freedom period.
[D.O. No. 40-1-15]
The five-year representation status acquired by
an incumbent bargaining agent either through
single enterprise collective bargaining or multi-
employer bargaining shall not be affected by a
subsequent [CBA] executed between the same
bargaining agent and the employer during the
same five-year period. [Sec. 7, Rule XVII, Book
V, IRR]
Despite an agreement for a CBA with a life of
more than five years, either as an original
provision or by amendment, the bargaining
union’s exclusive bargaining status is effective
only for five years and can be challenged within
sixty (60) days prior to the expiration of the
CBA’s first five years. [FVC Labor Union-
PTGWO v. SANAMA-FVC-SIGLO, G.R. No.
176249 (2009)]
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.
Hence, the contract bar rule still applies.
[Colegio de San Juan de Letran v. Association
of Employees, G.R. No. 141471 (2000)]
Petition for cancellation of union
registration DOES NOT suspend or prevent
filing of certification election
A petition for cancellation of union registration
shall not:
1. suspend the proceedings for certification
election; nor
2. prevent the filing of a petition for
certification election. [Art. 246]
A certification election can be conducted
despite pendency of a petition to cancel the
union registration certificate. For the fact is that
at the time the [union], whose registration
certificate is sought to be cancelled, filed its
petition for certification, it still had the legal
personality to perform such act absent an order
directing its cancellation. [Association of Court
of Appeals Employees v. Calleja, G.R. No.
94716, (1991)]
 REVIEW ER ON LABOR RELATIONS
Allegation of company union a prejudicial
question to a petition for certification
election
A complaint for unfair labor practice may be
considered a prejudicial question in a
proceeding for certification election when it is
charged therein that one or more labor unions
participating in the election are being aided, or
are controlled, by the company or employer
[company union] [United CMC Textile Worker’s
Union v. BLR, G.R. No. 51337(1984)].
Rationale: The certification election may lead
to the selection of an employer-dominated or
company union as the employees’ bargaining
representative, and when the court finds that
said union is employer-dominated in the unfair
labor practice case, the union selected would
be decertified and the whole election
proceedings would be rendered useless and
nugatory. [B.F. Goodrich Phils. Marikina v. B.F.
Goodrich Confidential and Salaried Employees
Union, G.R. No. L-34069-70 (1973)]
NATURE OF PROCEEDING
Certification election is the most effective and
the most democratic way of determining which
labor organization can truly represent the
working force in the appropriate bargaining unit
of a company [Samangang Manggagawa sa
PERMEX v SOLE, G.R. No. 107792 (1998)].
The determination of the proceeding does not
entail the entry of remedial orders or redress of
rights, but culminates solely in an official
designation of bargaining units and an
affirmation of the employees’ expressed choice
of bargaining agent. [Angat River Irrigation
System v. Angat River Worker’s Union
(PLUM), G.R. Nos. L-10943 and L-10944
(1957)]
Technical rules and objections should not
hamper the correct ascertainment of the labor
union that has the support or confidence of the
majority of the workers and is thus entitled to
represent them in their dealings with
management. [Port Workers Union v.
Laguesma, G.R. Nos. 94929-30, (1992)]
Certification Union Election
Election
To determine the To elect union
Exclusive Bargaining officers
Agent
All members of the Only union members
appropriate may vote
bargaining unit
WHO MAY VOTE [Sec. 6, Rule IX, Book V,
IRR]
All employees who are members of the
appropriate bargaining unit three (3) months
prior to the filing of the petition/request shall be
eligible to vote.
An employee who has been dismissed from
work but has contested the legality of the
dismissal in a forum of appropriate jurisdiction
at the time of the issuance of the order for the
conduct of a certification election shall be
considered a qualified voter, unless his/her
dismissal was declared valid in a final judgment
at the time of the conduct of the certification
election.
In case of disagreement over the voters’ list or
over the eligibility of voters, all contested voters
shall be allowed to vote. But their votes shall be
segregated and sealed in individual envelopes.
WHO MAY FILE [Sec. 1, Rule VIII, Book V,
IRR]
1. Legitimate labor organization [Art. 219
(h)]
2. Local/chapter that has been issued a
charter certificate
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. [Art. 241]
3. National union or federation that has
issued a charter certificate to its
local/chapter [in behalf of the latter]
 REVIEW ER ON LABOR RELATIONS

4. A group of legitimate labor unions in a

private establishment organized for
collective bargaining or for dealing with
employers concerning terms and
conditions of employment for their member
unions or for participating in the formulation
of social and employment policies,
standards and programs, registered with
the BLR in accordance with Rule III Sec. 2-
B. [Sec. 1 (ll), Rule I, Book V, IRR]
5. Employer (when requested to bargain
collectively and no existing CBA)
Requisites:
a. Employer is requested to bargain
collectively; AND
b. No existing registered CBA in the unit
[Art. 270]
The employer is not a party to a certification
election, which is the sole or exclusive concern
of the workers. [...]
The only instance when the employer may be
involved in that process is when it is obliged to
file a petition for certification election on its
workers’ request to bargain collectively
pursuant to Art. 258 [now Art. 270]. [Hercules
Industries, Inc. v. Sec. of Labor, G.R. No.
96255 (1992)]

BYSTANDER RULE [The employer] did not possess the legal

In all cases, whether the petition for
certification election is filed by an employer or
a legitimate labor organization, the employer
shall not be considered a party thereto with a
concomitant right to oppose a petition for
certification election. [Art. 271]
The employer’s participation shall be
limited to:
a. Being notified or informed of petitions of
such nature
b. Submitting the list of employees during the
pre-election conference, should the Med-
Arbiter act favorably on the petition [Art.
271]
The principle of the employer as by-stander
shall be strictly observed throughout the
conduct of certification election.
personality to file a motion to dismiss the
petition for certification election even if based
on the ground that its supervisory employees
are in reality managerial employees.
It is well-settled that an employer has no
standing to question a certification election
since this is the sole concern of the workers.
The only exception to this rule is Art. 258 [now
Art. 270]. [PT&T v. Laguesma, G.R. No.
101730 (1993)]
[A] company’s interference in the certification
election below by actively opposing the same
[...] unduly creates a suspicion that it intends to
establish a company union. [Oriental Tin Can
Labor Union v. Secretary of Labor, G.R. No.
116751 (1998)]

The employer shall not harass, intimidate,

threat[en], or coerce employees before, during
and after elections. [Sec. 1, Rule IX, Book V,
IRR]

However, manifestation of facts that would aid

the [Med-Arbiter] in expeditiously resolving the
petition such as existence of a contract-bar,
one year bar or deadlock bar may be
considered. [Sec. 1, Rule VIII, Book V, IRR]
 REVIEW ER ON LABOR RELATIONS
Procedure: CERTIFICATION ELECTION IN
AN UNORGANIZED ESTABLISHMENT
Unorganized Establishment
[It is an] establishment where there is no
certified bargaining agent. [Art. 269]
Procedure [Art. 269]
1. File a petition for certification election.
2. Upon filing of the petition, the Med-Arbiter
shall automatically conduct a certification
election.
Filing of petition is by a legitimate labor
organization
It cannot be filed by an unregistered labor
organization. Art. 251 enumerates the rights
granted to a legitimate labor organization and
one of those rights is the right to be chosen as
the exclusive bargaining representative. This is
one way the law encourages union registration.
Note: Art. 269 should be related to SEBA
Certification. If there are multiple LLOs in an
unorganized establishment, Art. 269 applies. If
there is only one LLO in an unorganized
establishment, Rule VII on SEBA Certification
applies. Under this rule, when there is failure to
complete requirements, the Regional Director
will refer it to the Election Officer.
Procedure: CERTIFICATION ELECTION IN
AN ORGANIZED ESTABLISHMENT
Organized Establishment
Refers to an enterprise where there exists a
recognized or certified sole and exclusive
bargaining agent. [Sec. 1(ll), Rule I, Book V,
IRR]
Procedure [Art. 268]
1. File a verified petition questioning the
majority.
2. It must be filed within the 60-day period
before expiration of CBA (freedom period).
3. Supported by written consent of at least
25% of ALL employees in the bargaining
unit (substantial support).
4. Med-Arbiter shall automatically order an
election.
WHEN PETITION MUST BE FILED
Freedom Period
Within the sixty (60)-day period before the
expiration of the collective bargaining
agreement. [Art. 271]
Rationale of Prohibition of Filing Outside
the Freedom Period
To ensure industrial peace between the
employer and its employees during the
existence of the CBA. [Republic Planters Bank
Union v. Laguesma, G.R. No. 119675 (1996)]
d. Run-Off Election
Run-Off Election refers to an election
between the labor unions receiving the two (2)
highest number of votes in a certification or
consent election when the following requisites
have been complied with:
1. Valid election;
2. The certification or consent election
provides for three (3) or more choices
(Note: “No Union” is considered one choice
– Prof. Battad);
3. None of the contending UNIONS received
a majority of the VALID VOTES cast;
4. No objections or challenges which if
sustained, can materially alter the results;
and
5. The total number of votes for all contending
UNIONS is at least fifty (50%) of the
number of VOTES cast [Art. 268; Sec.
1(uu), Rule I, Book V, IRR; Sec. 1, Rule X,
Book V, IRR]
Illustration
The CBU has 100 members and 80 of which
voted. Union “A”= 30; Union “B”= 15; Union
“C”=15 and No Union= 20. There were no
invalid votes. Since none got the majority of the
80 valid votes (40) and the contending unions
obtained 60 votes (which is at least 50% of the
VOTES cast), a run-off election is proper. The
run-off will be between the labor unions
receiving “the two highest number of votes.”
 REVIEW ER ON LABOR RELATIONS

Pursuant to Art. 268, when an election which Situations Contemplated

provides for three or more choices results in no
choice receiving a majority of the valid votes
cast, a run-off election shall be conducted
between the labor unions receiving the two
highest number of votes. Thus, the run-off will
be among Union “A”, “B”, and “C.” [Azucena]
Procedure for Run-Off Election
Election Officer shall motu proprio conduct a
run-off election within ten (10) days from the
close of the election proceedings between the
labor unions receiving the two highest number
of votes.
“No Union” shall not be a choice in the run-off
election [Sec. 1, Rule X, Book V, IRR].
1. A tie between two (2) choices.
2. Failure of Elections [see Definition]
Duty of Election Officer
1. Notify parties of a re-run election
2. Cause posting of notice within five (5) days
from said election.
When will re-run be conducted
Within ten (10) days after the posting of the
notice of the union declared as winner and
certified choice receiving the HIGHEST
VOTES CAST.

Same voters’ list used in the certification

election shall be used in the run-off election.

The labor union receiving the GREATER

number of VALID VOTES cast shall be certified
as the winner [Sec. 2, Rule X, Book V, IRR].

Note: Please note the difference between valid

votes cast versus votes cast – valid votes
excludes spoiled votes.

e. Re-Run Election

Re-run Election refers to an election

conducted to break a tie between contending
unions, including between "no union" and one
of the unions. It shall likewise refer to an
election conducted after a failure of election
has been declared by the election officer
and/or affirmed by the mediator-arbiter. [Sec.
1(tt), Rule 1, Book V, as amended by DO 40-I-
15]