Chapter 3:

The Labor
Organization
Presented by: Mitch
MBA 604 Industrial Relations Management
Labor Organization
 means any union or association of employees
which exists, in whole or in part, for the purpose of
collective bargaining or of dealing with employers
concerning terms and conditions of employment .
(PD 442; Labor Code of the Philippines Art. 212)

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 LABOR ORGANIZATION

Registered to DOLE Not Registered.

 called Legitimate Labor lawful organization, but has
Organization. no legal personality to
(PD 442; Labor Code of the Philippines Art. 212)
demand collective
bargaining with the
 qualified to claim the rights
employer.
enumerated under Art. 242
and 263 (b) of the Labor cannot petition for a
Code. certification election and
cannot hold a legal strike.

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The Need for Organization
Organized labor plays an important role in protecting the rights of
employees.
 Unionism - the policies and practices of labor unions, particularly
those concerned with protecting and furthering the rights of
workers.
 Labor Union - (sometimes also referred to as trade unions or
simply unions) is an organization formed by workers in a
particular trade, industry, or company for the purpose of
improving pay, benefits, and working conditions.

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Trade Union, Contributions and Effects

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The Labor Organizations in the Philippines
•Registration of Labor Organization
a.Fifty pesos (P50.00) registration fee;
b.The names of its officers, their addresses, the principal address of the labor organization,
the minutes of the organizational meetings and the list of the workers who participated in
such meetings;
c.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; (As amended by Executive
Order No. 111, December 24, 1986)
d.If the applicant union has been in existence for one or more years, copies of its annual
financial reports; and
e.Four (4) 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. (As amended by
Batas Pambansa Bilang 130, August 21, 1981
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Who may join a labor organization or
workers’ association?
The following may join a labor organization:
a)all employees employed in commercial, industrial and agricultural
enterprises and in religious, charitable, medical or educational institutions
whether operating for profit or not;
b) government employees in the civil service;
c) supervisory personnel;
d) security personnel; and,
e) aliens with valid working permit provided there are nationals of a country
which grants the same or similar rights to Filipino workers as certified by
the Department of Foreign Affairs (DFA).
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Rights and Conditions of Membership
The following are the rights and conditions of membership in a labor
organization:
a. Right against excessive union dues
b. Right to detailed report on financial transactions.
c. Right to elect the officers by secret ballot.
d. Right to decide policy matters affecting membership.
e. Right against the admission of workers identified with subversive
organization.
f. Right to service of honest and trustworthy union

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Rights and Conditions of Membership
g. Right against unauthorized collection and disbursement of union funds.
h. Right to a receipt for every contribution made.
i. Right to receipts of every union disbursement.
j. Right against the grant of unauthorized salaries etc.
k. Right of inspection of union books of accounts.
l. Right against unreasonable assessment and fees.
m. Right against check-off for extraordinary assessment and fees.

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Rights and Conditions of Membership
n. The treasurer of any labor organization and every officer thereof who is responsible for the account
of such organization or for the collection, management, disbursement, custody or control of the
funds, moneys and other properties of the organization, shall render to the organization and to its
members a true and correct account of all moneys received and paid by him since he assumed
office or since the last day on which he rendered such account, and of all bonds, securities and
other properties of the organization entrusted to his custody or under his control. The rendering of
such account shall be made:
1. At least once a year within thirty (30) days after the close of its fiscal year;
2. At such other times as may be required by a resolution of the majority of the members of the
organization; and
3. Upon vacating his office.
The account shall be duly audited and verified by affidavit and a copy thereof shall be furnished the
Secretary of Labor.

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Unfair Labor Practices
 are offenses committed by the employer or labor
organization which violate the constitutional right of workers
and employees to self-organization. ULP acts are inimical to
the legitimate interests of both labor and management,
disrupt industrial peace and hinder the promotion of healthy
and stable labor-management relations. (Art. 248 of the Labor Code, as amended)

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Unfair Labor Practices of Employers..
ULP by management are as follows:
a) Interference by employer.
b) Requiring non-membership in a labor union.
c) Contracting out services or functions.
d) Initiating, dominating, assisting, etc. of a union.
e) Discriminating on terms and conditions of employment.
f) Dismissing or prejudicing testifying employees
g) Violations of the duty to bargain collectively.
h) Paying negotiation or attorney’s fee to union officers etc.,
i) Violations of collective bargaining agreement.

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Unfair Labor Practices of Labor Organizations..
A labor organization commits ULP by any of the following violations:
a) Restraint or coercion of employees in the exercise of their right to self-
organization: However, the labor organization shall have the right to prescribe its
own rules with respect to the acquisition or retention of membership; and
b) Inducing an employer to discriminate against employee. Causing or attempting
to cause an employer to discriminate against an employee, including
discrimination against an employee with respect to whom membership in such
organization has been denied or terminating an employee on any ground other than
the usual terms and conditions under which membership or continuation of
membership is made available to other members.

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Unfair Labor Practices of
both Employers & Labor Organizations..
ULPs by both management and labor organizations are as follows:
a) Interference, restraint, or coercion of employees in the exercise of their right to self-
organization;
b) Violation of a collective bargaining agreement, when circumstances warrant;
c) Initiating, dominating, assisting or otherwise interfering with the formation or
administration of any labor organization, including the giving of financial or other
support to it or its organizers or supporters;
d) Violation of the duty to bargain collectively; and
e) Payment by employer of negotiation or attorney’s fees and acceptance by the union or its
officers or agents as part of the settlement of any issue in collective bargaining or any
other dispute (Art. 248, 249 of the Labor Code, as amended).

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